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You may request a copy of the 2026 Annual","page_number":8,"box":{"x":69,"y":430,"width":781,"height":12}},{"id":"febe7247-751d-4c0c-863e-4983f18d89b3","block_type":"box","text":"Financial Statements at no charge by calling (800) 441-7762 between 8:00 a.m. and 6:00 p.m. Eastern time","page_number":8,"box":{"x":70,"y":445,"width":820,"height":12}},{"id":"48789787-701b-4e8c-8988-d68688ebf09b","block_type":"box","text":"on any business day.","page_number":8,"box":{"x":69,"y":460,"width":157,"height":12}},{"id":"55f46c48-3762-44a2-89b7-b8631522e43b","block_type":"box","text":"References to the Investment Company Act of 1940, as amended (the “Investment Company Act”), or","page_number":8,"box":{"x":103,"y":483,"width":767,"height":12}},{"id":"8ce94c0c-b1a1-477b-a9b1-0b91852b7837","block_type":"box","text":"other applicable law, will include any rules promulgated thereunder and any guidance, interpretations or","page_number":8,"box":{"x":69,"y":498,"width":796,"height":12}},{"id":"ed8f6f7d-8ec0-4352-a89c-55e710ad5383","block_type":"box","text":"modifications by the Commission, Commission staff or other authority with appropriate jurisdiction, including","page_number":8,"box":{"x":70,"y":513,"width":837,"height":12}},{"id":"ab5995ca-38b4-4d9b-a9d9-61616587de96","block_type":"box","text":"court interpretations, and exemptive, no-action or other relief or permission from the Commission,","page_number":8,"box":{"x":69,"y":528,"width":749,"height":12}},{"id":"b4ac6083-1a71-4c29-8af5-ac564ff01a9e","block_type":"box","text":"Commission staff or other authority.","page_number":8,"box":{"x":70,"y":543,"width":274,"height":12}},{"id":"3ec5de26-8d55-4c4b-bee7-f343ebf267f5","block_type":"box","text":"Class","page_number":8,"box":{"x":69,"y":572,"width":31,"height":7}},{"id":"3ade84cd-64e3-417c-81ff-526bd5bba69f","block_type":"box","text":"Ticker Symbol","page_number":8,"box":{"x":827,"y":572,"width":82,"height":9}},{"id":"41e81b85-a510-4cb9-8cc6-3794ef8dab6d","block_type":"box","text":"Investor A Shares","page_number":8,"box":{"x":70,"y":590,"width":124,"height":9}},{"id":"10c44463-575c-47ca-97e6-b9dd97528c6f","block_type":"box","text":".........................................................................","page_number":8,"box":{"x":208,"y":597,"width":588,"height":1}},{"id":"403225cc-61f1-4153-a3b2-0d452a1f37f4","block_type":"box","text":"BROAX","page_number":8,"box":{"x":845,"y":590,"width":48,"height":9}},{"id":"1b9c8c21-4ac3-4788-92a4-ba0f15a38fb0","block_type":"box","text":"Investor C Shares.","page_number":8,"box":{"x":70,"y":605,"width":131,"height":9}},{"id":"ae6dc1e8-4d18-45d8-95f0-817c034a8b6e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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Act as an underwriter of securities within the meaning of the Securities Act of 1933, as amended, except","page_number":15,"box":{"x":134,"y":574,"width":771,"height":11}},{"id":"ced91795-bfe0-47df-8145-a359d7f9cca9","block_type":"box","text":"to the extent that the purchase of obligations directly from the issuer thereof, or the disposition of securities, in","page_number":15,"box":{"x":101,"y":589,"width":797,"height":11}},{"id":"6f5b71ab-c324-4f94-9fa3-9732142f9a82","block_type":"box","text":"accordance with the Fund’s investment objective, policies and limitations may be deemed to be underwriting.","page_number":15,"box":{"x":102,"y":604,"width":777,"height":11}},{"id":"740e7f5e-6994-42ff-ae0b-f856555e02a2","block_type":"box","text":"5. 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Purchase securities on margin, make short sales of securities or maintain a short position, except that","page_number":15,"box":{"x":135,"y":702,"width":756,"height":12}},{"id":"857b7048-66af-40b5-9287-e860d58f122e","block_type":"box","text":"(a) this investment limitation shall not apply to the Fund’s transactions in futures contracts and related options","page_number":15,"box":{"x":102,"y":717,"width":791,"height":12}},{"id":"c6ea4628-9bf1-4d84-a4e5-10b9c7446637","block_type":"box","text":"or the Fund’s sale of securities short against the box, and (b) the Fund may obtain short-term credit as may be","page_number":15,"box":{"x":102,"y":732,"width":790,"height":12}},{"id":"f85dd454-2f28-4216-9931-50fbf80c349b","block_type":"box","text":"necessary for the clearance of purchases and sales of portfolio securities.","page_number":15,"box":{"x":102,"y":748,"width":531,"height":11}},{"id":"e577b1e1-39d5-41fc-a551-388767d03c81","block_type":"box","text":"8. Purchase or sell commodity contracts, or invest in oil, gas or mineral exploration or development","page_number":15,"box":{"x":134,"y":770,"width":707,"height":12}},{"id":"1035a04c-d4a9-4b40-9038-2c925ea200f9","block_type":"box","text":"programs, except that the Fund may, to the extent appropriate to its investment policies, purchase securities of","page_number":15,"box":{"x":102,"y":785,"width":795,"height":12}},{"id":"e7f87a23-c121-47a4-8a51-e65c78adb7ed","block_type":"box","text":"companies engaging in whole or in part in such activities and may enter into futures contracts and related","page_number":15,"box":{"x":101,"y":801,"width":755,"height":11}},{"id":"8fa0db2c-b49a-4e01-bde5-8f942d1123b0","block_type":"box","text":"options.","page_number":15,"box":{"x":102,"y":816,"width":55,"height":11}},{"id":"165ae560-e139-4277-aee1-36374f90243f","block_type":"box","text":"9. Make loans, except that the Fund may purchase and hold debt instruments and enter into repurchase","page_number":15,"box":{"x":134,"y":838,"width":745,"height":11}},{"id":"8b3f79d6-a20a-43c9-919c-5293d31f010b","block_type":"box","text":"agreements in accordance with its investment objective and policies and may lend portfolio securities.","page_number":15,"box":{"x":102,"y":853,"width":729,"height":12}},{"id":"67724b2d-e872-4958-a54d-b385079b635c","block_type":"box","text":"10. Purchase or sell commodities except that the Fund may, to the extent appropriate to its investment","page_number":15,"box":{"x":135,"y":876,"width":735,"height":11}},{"id":"86594ccd-2258-4ea0-b629-62343ac0a3de","block_type":"box","text":"policies, purchase securities of companies engaging in whole or in part in such activities, may engage in","page_number":15,"box":{"x":102,"y":891,"width":744,"height":12}},{"id":"e1c6a718-d93d-490a-926c-f11da1196f2a","block_type":"box","text":"currency transactions and may enter into futures contracts and related options.","page_number":15,"box":{"x":101,"y":906,"width":565,"height":12}},{"id":"47164d6f-150c-4e0a-b015-801c431965c8","block_type":"box","text":"I-6","page_number":15,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"3ab24809-8de3-4059-ac31-09efb00bb6f1","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":15,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f2a3b35a-7334-4833-81a2-ad87530c4802","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":16,"box":{"x":102,"y":45,"width":494,"height":11}},{"id":"b7b41e16-e2b5-4f96-ac01-8188e37eae2a","block_type":"box","text":"The following notations are not considered to be part of the Fund’s fundamental investment restrictions and are","page_number":16,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"4ca70d2f-7acf-47f6-a235-ce8a285ce5bc","block_type":"box","text":"subject to change without shareholder approval.","page_number":16,"box":{"x":69,"y":83,"width":341,"height":11}},{"id":"7a0f0d8c-2477-4344-b918-9146e3cc86d0","block_type":"box","text":"For purposes of investment restriction 1 above, with respect to the Fund’s industry classifications, the Fund","page_number":16,"box":{"x":102,"y":105,"width":768,"height":11}},{"id":"e72215e2-bf02-4d99-871a-820063dd72b3","block_type":"box","text":"currently utilizes any one or more of the industry sub-classifications used by one or more widely recognized market","page_number":16,"box":{"x":69,"y":120,"width":817,"height":12}},{"id":"c4239bb2-f861-47a1-a550-a9ffbe002a21","block_type":"box","text":"indexes or rating group indexes, and/or as defined by Fund management. The policy also will be interpreted to give","page_number":16,"box":{"x":70,"y":135,"width":817,"height":12}},{"id":"6dc4c6ac-a8d1-48c2-8467-b43a9cea99c0","block_type":"box","text":"broad authority to the Fund as to how to classify issuers within or among industries.","page_number":16,"box":{"x":69,"y":150,"width":597,"height":12}},{"id":"27e806a0-f1ec-4dd3-ab7f-30128aa3bbf2","block_type":"box","text":"With respect to the fundamental policy relating to issuing senior securities above, the Investment Company Act,","page_number":16,"box":{"x":101,"y":173,"width":795,"height":11}},{"id":"907bfe3a-d2e9-4dca-81d3-64799336640e","block_type":"box","text":"including the rules and regulations thereunder, generally prohibits the Fund from issuing senior securities (other than","page_number":16,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"5f0deca8-cb41-43c8-a65d-6add0d55cde1","block_type":"box","text":"certain temporary borrowings) unless immediately after the issuance the Fund has satisfied an asset coverage","page_number":16,"box":{"x":69,"y":203,"width":790,"height":12}},{"id":"efe70fa8-cafe-4445-8842-e4173f42136a","block_type":"box","text":"requirement with respect to senior securities representing indebtedness prescribed by the Investment Company Act.","page_number":16,"box":{"x":69,"y":219,"width":828,"height":11}},{"id":"76314116-2253-4459-a0cc-259ff5ebf362","block_type":"box","text":"Certain trading practices and investments, such as derivatives transactions, may be treated as senior securities.","page_number":16,"box":{"x":69,"y":234,"width":805,"height":11}},{"id":"897877e1-7d14-4030-b01f-6f45acbc0004","block_type":"box","text":"Prior to the adoption and implementation of Rule 18f–4 under the Investment Company Act, when the Fund engaged","page_number":16,"box":{"x":69,"y":249,"width":826,"height":11}},{"id":"b443496b-0267-4bc4-9088-5a4ffc1b8e56","block_type":"box","text":"in a derivatives transaction that creates future payment obligations, consistent with SEC staff guidance and","page_number":16,"box":{"x":70,"y":264,"width":766,"height":11}},{"id":"5e31b32e-69c9-4e40-93f3-924195970dc0","block_type":"box","text":"interpretations, the Fund was permitted to segregate or earmark liquid assets, or enter into an offsetting position, in","page_number":16,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"055fb74f-337f-446b-af77-ace80a55c5f2","block_type":"box","text":"an amount at least equal to the Fund’s exposure, on a mark to market basis, to the transaction, instead of meeting","page_number":16,"box":{"x":69,"y":294,"width":825,"height":11}},{"id":"a0be3f6f-2239-4f8d-b589-7efeb83422d9","block_type":"box","text":"the asset coverage requirement with respect to senior securities prescribed by the Investment Company Act. The SEC","page_number":16,"box":{"x":68,"y":309,"width":840,"height":11}},{"id":"7c128d32-7a98-41a6-b847-d600dab79832","block_type":"box","text":"staff guidance and interpretations were rescinded in connection with the adoption of Rule 18f–4, and the Fund now","page_number":16,"box":{"x":69,"y":324,"width":822,"height":12}},{"id":"a2c6f8a8-536c-40dc-8eb4-80c503fb7f98","block_type":"box","text":"complies with Rule 18f–4 with respect to its derivatives transactions. Thus, the fundamental policy relating to issuing","page_number":16,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"bc204ef0-bd29-4f3f-933f-97a8ce1941a0","block_type":"box","text":"senior securities above will not restrict the Fund from entering into derivatives transactions that are treated as senior","page_number":16,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"bcd2ecc4-24d5-47a2-b04c-b47b783268c5","block_type":"box","text":"securities so long as the Fund complies with Rule 18f–4 with respect to such derivatives transactions.","page_number":16,"box":{"x":69,"y":370,"width":728,"height":11}},{"id":"0ef8b2db-0427-4260-ab8e-8c5919626db4","block_type":"box","text":"While certain swaps are now considered commodity interests for purposes of the Commodity Exchange Act and","page_number":16,"box":{"x":101,"y":392,"width":793,"height":12}},{"id":"17ca9e64-4355-4bac-a61e-b410a69295c2","block_type":"box","text":"the rules thereunder, at the time of the Fund’s adoption of fundamental investment restrictions no. 5, 8 and 10","page_number":16,"box":{"x":68,"y":407,"width":796,"height":11}},{"id":"da62fc0f-b946-4416-9da8-72b82706a874","block_type":"box","text":"above, many swaps were treated as securities for purposes of the Fund’s compliance with applicable law.","page_number":16,"box":{"x":69,"y":423,"width":752,"height":11}},{"id":"b901f81a-cf33-4f3d-b4b6-291963485ca5","block_type":"box","text":"Accordingly, fundamental investment restriction no. 5, which does not restrict transactions in options on securities","page_number":16,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"b0e6fb78-db5f-427d-b31d-fa56fbb7ec02","block_type":"box","text":"and securities indices, and fundamental investment restrictions no. 8 and 10 are being interpreted to permit the","page_number":16,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"045e7a85-e50d-43e5-842a-a70508592edd","block_type":"box","text":"Fund to engage in transactions in swaps and options on swaps, as applicable, related to financial instruments, such","page_number":16,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"6ba73509-33fd-4555-918a-bf67811888f7","block_type":"box","text":"as securities, securities indices and currencies, but not to engage in transactions in swaps or options on swaps","page_number":16,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"8c78d749-eabb-436d-9cc3-4db79af9db4f","block_type":"box","text":"related to physical commodities, such as oil or metals.","page_number":16,"box":{"x":69,"y":498,"width":390,"height":11}},{"id":"fcf03799-15d3-4340-b47c-4b70cac340db","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":521,"width":768,"height":11}},{"id":"57830cf2-bff5-4f48-9ef4-722a0b87fd62","block_type":"box","text":"approval, the Fund may not:","page_number":16,"box":{"x":69,"y":536,"width":197,"height":11}},{"id":"ab487476-143d-415d-be19-0e7d84f7639a","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":16,"box":{"x":134,"y":559,"width":742,"height":11}},{"id":"f467028e-f65f-46f2-9cb8-24fda891f21f","block_type":"box","text":"Company Act. As a matter of policy, however, the Fund will not purchase shares of any registered open-end","page_number":16,"box":{"x":102,"y":574,"width":759,"height":11}},{"id":"fb041a8a-30ae-413a-96eb-f7b783693b01","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of","page_number":16,"box":{"x":102,"y":589,"width":779,"height":11}},{"id":"373b736c-ab99-473d-ac04-9562eba7ad50","block_type":"box","text":"funds” provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are","page_number":16,"box":{"x":101,"y":604,"width":761,"height":11}},{"id":"870a0be7-5439-418e-a25f-344808a45807","block_type":"box","text":"purchased by another investment company investor in reliance on the provisions of subparagraph (G) of Section","page_number":16,"box":{"x":102,"y":619,"width":795,"height":11}},{"id":"ca591b67-9cba-49ca-aeef-fa90aebf686c","block_type":"box","text":"12(d)(1).","page_number":16,"box":{"x":102,"y":634,"width":60,"height":11}},{"id":"d75f178e-6aab-4661-ade2-53fdc2ad0366","block_type":"box","text":"Unless otherwise indicated, or with respect to policies adopted pursuant to Rule 35d-1 under the Investment","page_number":16,"box":{"x":102,"y":657,"width":776,"height":11}},{"id":"20266647-eece-42fb-ac3d-3029e6f0eb90","block_type":"box","text":"Company Act, all limitations under the Fund’s fundamental or non-fundamental investment restrictions apply only at","page_number":16,"box":{"x":69,"y":672,"width":822,"height":11}},{"id":"267bfb1f-49a5-41b9-9d4f-55b91c797d2a","block_type":"box","text":"the time that a transaction is undertaken. Any change in the percentage of the Fund’s assets invested in certain","page_number":16,"box":{"x":68,"y":687,"width":803,"height":11}},{"id":"bc090a2d-803f-4575-85e0-f71d5f79f5f8","block_type":"box","text":"securities or other instruments resulting from market fluctuations or other changes in the Fund’s total assets will not","page_number":16,"box":{"x":69,"y":702,"width":835,"height":12}},{"id":"5d78fa98-6152-428f-bf56-58f4df1b1061","block_type":"box","text":"require the Fund to dispose of an investment until BlackRock determines that it is practicable to sell or close out the","page_number":16,"box":{"x":69,"y":717,"width":833,"height":11}},{"id":"e743a1b3-06be-48f4-a054-b5d44f2bb68c","block_type":"box","text":"investment without undue market or tax consequences.","page_number":16,"box":{"x":70,"y":733,"width":393,"height":10}},{"id":"708f834f-e538-4c25-884e-aaae85f2ebfd","block_type":"box","text":"III. Information on Trustees and Officers","page_number":16,"box":{"x":69,"y":763,"width":290,"height":9}},{"id":"10cec107-fa9f-477b-8a79-16bfbf517a77","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Trustee”), thirteen of whom are not “interested persons” of","page_number":16,"box":{"x":101,"y":785,"width":788,"height":11}},{"id":"301dc989-b28c-4774-9cc6-aea9824186b7","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":801,"width":779,"height":11}},{"id":"a271104c-f09e-4d0f-bfc9-c47c6dd30705","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":816,"width":837,"height":11}},{"id":"463f8faa-0e91-4c23-b321-060ce95e84dd","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":831,"width":793,"height":11}},{"id":"469aae34-5be7-44dd-b769-67643e186021","block_type":"box","text":"Complex”). The Trust is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":16,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"27a31167-61ca-4ba8-9ef5-97704342066f","block_type":"box","text":"The Trustees also oversee as board members the operations of the other open-end registered investment companies","page_number":16,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"12a7e243-ff61-4fc5-b27d-42ccec39e21a","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":16,"box":{"x":70,"y":876,"width":335,"height":11}},{"id":"d8666bae-09dc-404a-9895-0e3d03cf55c1","block_type":"box","text":"I-7","page_number":16,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"b7b87055-6eab-43a6-88d4-fbba41a245a7","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":16,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"12a33523-8e5b-450d-a1a5-dd20ee684ca9","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":45,"width":769,"height":11}},{"id":"3665a4c0-29d0-4054-883c-b7501dfb548c","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":60,"width":827,"height":11}},{"id":"db4f63da-3b7d-4316-84ab-b2fccc29345c","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":75,"width":821,"height":11}},{"id":"8b2fb64a-e877-4c6f-b85f-dacc9ab48ecb","block_type":"box","text":"Committee, a Performance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board","page_number":17,"box":{"x":69,"y":90,"width":835,"height":11}},{"id":"88c3e34a-45f9-487c-a8b5-dbdd489d75d4","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":105,"width":830,"height":11}},{"id":"7feb7f6a-ec48-4379-84f5-acd3b4cf91ce","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee performs a similar role with respect to the","page_number":17,"box":{"x":68,"y":120,"width":789,"height":12}},{"id":"a42f5f92-eb80-4d06-92a0-78ce354a6115","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also perform such other functions as may be","page_number":17,"box":{"x":69,"y":135,"width":810,"height":11}},{"id":"ffcc7fcc-7c3f-4e38-a321-24fa8dce7373","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":150,"width":809,"height":12}},{"id":"12dac293-866c-49b4-a349-186050fcdd8d","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":166,"width":794,"height":11}},{"id":"a1fdb1cc-4c33-4106-b5d3-6ff730e7f10c","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":181,"width":816,"height":11}},{"id":"090697df-4305-482c-b134-5718c0d0a5a9","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and reports","page_number":17,"box":{"x":69,"y":196,"width":831,"height":11}},{"id":"c72c706b-a37f-43d1-93fe-f6b991e596e9","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":211,"width":811,"height":11}},{"id":"1e9adbad-4bef-4d1f-8bba-322836c53b67","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":226,"width":809,"height":11}},{"id":"29e4d402-2ace-4cd4-882f-0f8a6b8a31a6","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":241,"width":825,"height":11}},{"id":"282121c2-2185-44f7-8e7a-1aa70e066a24","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":17,"box":{"x":69,"y":256,"width":441,"height":12}},{"id":"19dbaa8a-aa1f-4884-84b6-08ec2019918a","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":279,"width":777,"height":11}},{"id":"43334a4f-65ba-4a4a-8cbd-02cf5aff8f6b","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":294,"width":832,"height":11}},{"id":"4883d008-2ee2-49c7-8b52-66c954c3bea5","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Trust’s charter, and the Fund’s","page_number":17,"box":{"x":68,"y":309,"width":820,"height":11}},{"id":"00274c29-c575-4fc2-8d0b-cd13d382fab2","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s performance, operations","page_number":17,"box":{"x":70,"y":324,"width":812,"height":12}},{"id":"8849a496-4b0d-4afa-8c72-e0e676faf7a8","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":339,"width":819,"height":12}},{"id":"6856eb5e-83b9-4f5f-8421-fb4a5a56777d","block_type":"box","text":"the operations of the Fund.","page_number":17,"box":{"x":68,"y":355,"width":192,"height":11}},{"id":"0244c89d-513c-4365-ae9f-f11382283293","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":377,"width":785,"height":12}},{"id":"85207bb4-04ca-4527-b791-ab51a454b0e0","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":392,"width":828,"height":12}},{"id":"eab3e71b-6f77-4412-88ae-0eec935d64c3","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":407,"width":832,"height":12}},{"id":"09c01426-9030-4491-81f5-ee7dce0cebbc","block_type":"box","text":"there are a number of risk management functions performed by the Manager and the sub-advisers or other service","page_number":17,"box":{"x":68,"y":423,"width":820,"height":11}},{"id":"b97c0a9a-36cc-4819-8885-b67f2fc8036c","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":438,"width":811,"height":11}},{"id":"1aa7a296-81d7-4ac8-b1b2-054829ae10f0","block_type":"box","text":"part of the Board’s general oversight of the Fund and is addressed as part of various Board and Committee","page_number":17,"box":{"x":70,"y":453,"width":767,"height":11}},{"id":"fe8ffeba-06b6-4dc6-8431-329fcff1d7bb","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews reports from, among others, management, the","page_number":17,"box":{"x":69,"y":468,"width":815,"height":11}},{"id":"961a327c-0676-4f2b-85d4-58b2d871550e","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":483,"width":803,"height":11}},{"id":"4f0690b0-7b51-470f-b67b-e949ef0ca180","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":498,"width":840,"height":11}},{"id":"127fe72b-f151-4888-b386-f5c26f752eef","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":513,"width":812,"height":11}},{"id":"cacc1826-57b8-4c6b-9fa6-c452b279d7ae","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":528,"width":817,"height":12}},{"id":"b92f970d-56a7-4212-ad86-c9595c3bb8b7","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":543,"width":812,"height":11}},{"id":"8d2ac4ac-89be-4c60-a77e-b09c0ae4c788","block_type":"box","text":"testing of the Trust’s compliance program and reports to the Board regarding compliance matters for the Fund and","page_number":17,"box":{"x":68,"y":559,"width":818,"height":11}},{"id":"d6bac736-7232-4e64-a323-ceaacbc6c317","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":574,"width":759,"height":11}},{"id":"7dedfc64-ef3d-47aa-adae-22ddd48c9ff3","block_type":"box","text":"performing their oversight responsibilities.","page_number":17,"box":{"x":70,"y":589,"width":299,"height":11}},{"id":"e4b28146-bdf9-47b3-ad41-c60ec24311e6","block_type":"box","text":"Audit Committee.","page_number":17,"box":{"x":101,"y":612,"width":122,"height":9}},{"id":"e3da3aef-5879-4a42-bf75-1ccd542b1ed5","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":612,"width":673,"height":11}},{"id":"8413444c-9734-43b7-8408-66d8822fd789","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":627,"width":831,"height":11}},{"id":"18802493-3b23-4f01-a9bb-c3a433461e2e","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":642,"width":820,"height":11}},{"id":"520996ff-0ceb-4931-bb7e-396154d5f917","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":657,"width":823,"height":11}},{"id":"35c916bd-d950-4d74-98fc-ec7aee1ce0cc","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":672,"width":830,"height":11}},{"id":"810c445d-6e85-4c84-b42c-fc7579f74a2e","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":687,"width":825,"height":11}},{"id":"ccb2ee76-dbd2-4627-8e6f-ca9073567495","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":702,"width":807,"height":12}},{"id":"1d39c245-bdac-4a53-a003-df1c1b735409","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":717,"width":781,"height":11}},{"id":"ba60269c-916d-42e5-964c-c2dc911c3fc4","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":733,"width":834,"height":11}},{"id":"26628d6a-9303-4d4a-acab-064a8677b334","block_type":"box","text":"regarding the accounting or financial reporting policies and practices of the Fund and the internal controls of the Fund","page_number":17,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"9606075c-c9a3-4cd5-a545-89d3f49a2deb","block_type":"box","text":"and certain service providers; (5) oversee the performance of the Fund’s Independent Registered Public Accounting","page_number":17,"box":{"x":69,"y":763,"width":825,"height":11}},{"id":"ceb2c5a3-aa9f-4503-b521-5c48453e28ab","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":778,"width":809,"height":11}},{"id":"b0fdbd73-b907-439b-9481-02734a4cdd74","block_type":"box","text":"performance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":17,"box":{"x":70,"y":793,"width":815,"height":11}},{"id":"a453a018-2400-4098-9f23-8e87de74b1a0","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial reporting and controls;","page_number":17,"box":{"x":69,"y":808,"width":774,"height":11}},{"id":"e518a762-c9d1-477c-b2d7-c0e38fe65658","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":823,"width":815,"height":12}},{"id":"33422d9b-3411-417b-a873-8b045bef1b87","block_type":"box","text":"regarding financial reporting; and (9) undertake such other duties and responsibilities as may from time to time be","page_number":17,"box":{"x":69,"y":838,"width":819,"height":12}},{"id":"b5385bd7-f4f7-4cd7-81b1-5c9f073a46cc","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written charter for the Audit Committee.","page_number":17,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"fe5011dd-9bfb-4398-9fe3-629c1a25fe14","block_type":"box","text":"During the fiscal year ended May 31, 2026, the Audit Committee met four times.","page_number":17,"box":{"x":70,"y":869,"width":574,"height":11}},{"id":"aa505035-9dc8-48ba-a3da-d50710140fa7","block_type":"box","text":"Governance and Nominating Committee.","page_number":17,"box":{"x":102,"y":891,"width":286,"height":12}},{"id":"95fe9f53-b678-47aa-95ab-935fa5b00a29","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":17,"box":{"x":394,"y":891,"width":464,"height":12}},{"id":"70ed2da4-fc6f-4247-9c3e-966d1445e03f","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton,","page_number":17,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"1f94a6d3-2d41-4378-bfbb-1d4092c226b4","block_type":"box","text":"I-8","page_number":17,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"340087ae-122f-4d27-96eb-8ede00ba4821","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":17,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e0403bc6-ace5-4616-a804-e1bc6d1b7fa3","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":45,"width":784,"height":11}},{"id":"c28edb56-bdf8-4c73-baae-b39969136052","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":60,"width":803,"height":11}},{"id":"990fd6fa-d413-46f2-9c65-81c3d1e1f694","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":75,"width":829,"height":11}},{"id":"0f818dcc-de9f-4232-8c72-18a08387ffe1","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":90,"width":828,"height":11}},{"id":"3cd1ea5f-fbdb-4a05-ad85-0a8e7322c316","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":105,"width":809,"height":11}},{"id":"767a555f-2952-4edd-aac0-a1b1eadf5e64","block_type":"box","text":"and make recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters","page_number":18,"box":{"x":69,"y":120,"width":838,"height":12}},{"id":"cd50b5f2-4d34-4946-aa0b-9e7609fd1ead","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":135,"width":800,"height":11}},{"id":"a79d48d0-3b31-4490-b1ab-511c9f92b4e7","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":150,"width":813,"height":11}},{"id":"70c90201-5543-4d27-bcef-bdc7da5c44b8","block_type":"box","text":"ethics as they relate to Independent Trustees; and (7) undertake such other duties and responsibilities as may from","page_number":18,"box":{"x":69,"y":166,"width":829,"height":11}},{"id":"86c137b5-bb35-4f62-8b99-dd404438ee60","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":181,"width":804,"height":11}},{"id":"86a79159-e31d-4241-ba92-71b6a154070d","block_type":"box","text":"nominations for Trustees made by the Fund’s shareholders as it deems appropriate. Under the Trust’s Code of","page_number":18,"box":{"x":69,"y":196,"width":791,"height":11}},{"id":"b36e8731-e452-42f8-8227-de01b10b4d19","block_type":"box","text":"Regulations (“Bylaws”), shareholders must follow certain procedures to nominate a person for election as a Trustee","page_number":18,"box":{"x":70,"y":211,"width":826,"height":11}},{"id":"a6df1dd1-e3a1-46eb-8b3b-c627988704a3","block_type":"box","text":"at a shareholder meeting at which Trustees are to be elected. Under these advance notice procedures, notice of the","page_number":18,"box":{"x":69,"y":226,"width":828,"height":11}},{"id":"acc1d234-fa40-49be-9858-7a11e75b831b","block_type":"box","text":"proposed nominee to the Secretary of the Trust must be delivered to or mailed and received at the principal","page_number":18,"box":{"x":70,"y":241,"width":767,"height":11}},{"id":"9bde13fa-f4dc-4337-ae85-2ba9c4d05f22","block_type":"box","text":"executive offices of the Trust not later than the close of business on the fifth day following the day on which notice of","page_number":18,"box":{"x":69,"y":256,"width":837,"height":12}},{"id":"1450e1c8-f84e-4324-80fd-33e9fbb316a1","block_type":"box","text":"the date of the meeting was mailed or public disclosure of the date of the meeting was made, whichever first occurs.","page_number":18,"box":{"x":68,"y":271,"width":834,"height":12}},{"id":"5a9183b3-fb81-4dec-b70d-2a3ad56d36e7","block_type":"box","text":"The Trust’s Bylaws provide that notice of a proposed nomination must include certain information about the","page_number":18,"box":{"x":68,"y":286,"width":770,"height":12}},{"id":"402c352d-7ff6-49df-82b7-9c5c4393674d","block_type":"box","text":"shareholder and the nominee, as well as certain other information, including a written consent of the proposed","page_number":18,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"baecbf3b-c9be-4648-b531-980ae4f8160f","block_type":"box","text":"nominee to serve if elected. Reference is made to the Trust’s Bylaws for more details. The Board has adopted a","page_number":18,"box":{"x":69,"y":317,"width":801,"height":11}},{"id":"96f06bd5-72dc-4fb3-a1fe-b6fcc74a36c5","block_type":"box","text":"written charter for the Governance Committee. During the fiscal year ended May 31, 2026, the Governance","page_number":18,"box":{"x":68,"y":332,"width":765,"height":11}},{"id":"dee5d5a0-4405-4d21-bed4-5a49c93579ce","block_type":"box","text":"Committee met ten times.","page_number":18,"box":{"x":69,"y":347,"width":185,"height":9}},{"id":"5864e20a-0a8d-481e-acf4-26a23a68e056","block_type":"box","text":"Compliance Committee.","page_number":18,"box":{"x":102,"y":370,"width":168,"height":11}},{"id":"8d785e92-f18c-48d2-88c0-029af384369b","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":18,"box":{"x":276,"y":370,"width":629,"height":11}},{"id":"e5fd63ea-d07d-4473-bb63-f2c8b8a033fe","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":385,"width":828,"height":11}},{"id":"44a2d329-dbb7-484c-977e-3fa41646a88f","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":400,"width":771,"height":11}},{"id":"ea261ca2-4e8e-4e4a-b2ba-f67508e3028e","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":415,"width":835,"height":11}},{"id":"3decb962-812b-4a15-859c-e6d6a26c378d","block_type":"box","text":"BlackRock and any sub-adviser and the Trust’s third-party service providers. The Compliance Committee’s","page_number":18,"box":{"x":70,"y":430,"width":754,"height":11}},{"id":"5e3323d8-2c10-46ae-8b5e-f62d8d75a5e9","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":445,"width":834,"height":11}},{"id":"c8ca4d8e-5824-45e7-bb36-7be2197e85db","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":460,"width":815,"height":12}},{"id":"9935ebcc-9ed2-40c6-9d3f-353582e79a64","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":476,"width":785,"height":11}},{"id":"611d9612-0df4-452c-b9e1-09b5c8e4d5d4","block_type":"box","text":"reports from, oversee the annual performance review of, and make certain recommendations and determinations","page_number":18,"box":{"x":69,"y":491,"width":811,"height":11}},{"id":"425f094f-5551-4306-8a15-21215da2a558","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":506,"width":812,"height":11}},{"id":"b955c004-ca86-43e1-a917-606d381bdb62","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":521,"width":812,"height":11}},{"id":"5c85ee74-5387-4aaf-ad28-2d2cbd057ab8","block_type":"box","text":"and (4) undertake such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":18,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"2d689182-5fab-42ba-a7df-8607879d7463","block_type":"box","text":"Compliance Committee. The Board has adopted a written charter for the Compliance Committee. During the fiscal","page_number":18,"box":{"x":69,"y":551,"width":811,"height":11}},{"id":"0137ab0a-c05e-4779-8b6a-90585c7c47ab","block_type":"box","text":"year ended May 31, 2026, the Compliance Committee met four times.","page_number":18,"box":{"x":68,"y":566,"width":502,"height":11}},{"id":"e1d3fbaa-6901-4636-a125-f3a50e4f54fd","block_type":"box","text":"Per formance Oversight Committee.","page_number":18,"box":{"x":102,"y":589,"width":248,"height":11}},{"id":"a4a81f14-0b55-4575-92f3-a9fc3326fbe9","block_type":"box","text":"The members of the Performance Oversight Committee (the “Performance","page_number":18,"box":{"x":356,"y":589,"width":531,"height":11}},{"id":"3865cf61-1c16-4025-b2c9-f300baa2bba4","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton, Neil A.","page_number":18,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"996d5e6d-a732-4fd9-91be-2539df129191","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Trustees. The Performance Oversight Committee’s purpose is","page_number":18,"box":{"x":69,"y":619,"width":830,"height":11}},{"id":"b8f5f089-d661-4f76-8849-d640d2e9d6ba","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment performance relative to its agreed","page_number":18,"box":{"x":68,"y":634,"width":832,"height":12}},{"id":"68f89ad9-18b8-4183-bc0e-e084ce7b6dce","block_type":"box","text":"upon performance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":18,"box":{"x":69,"y":649,"width":816,"height":12}},{"id":"e1f5adff-80a2-4c6a-80d6-9264b25aac6a","block_type":"box","text":"agreements. The Performance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":18,"box":{"x":69,"y":664,"width":782,"height":12}},{"id":"728b4c42-8b66-4d5a-86cd-f73c13a5aeef","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":680,"width":829,"height":11}},{"id":"734a20d7-b717-40f9-b7ca-350a8887abb1","block_type":"box","text":"and practices; (2) review information on the Fund’s investment performance; (3) review information on appropriate","page_number":18,"box":{"x":69,"y":695,"width":816,"height":11}},{"id":"efadcaaf-4edf-4033-a3a3-781c00690df0","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":710,"width":803,"height":11}},{"id":"01242a40-3bfe-4a76-bb97-8751ad0a2b83","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":725,"width":827,"height":11}},{"id":"c9b45faa-1351-4605-8512-ed2dabe03983","block_type":"box","text":"the Performance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":18,"box":{"x":68,"y":740,"width":811,"height":11}},{"id":"cfbc364c-f8b5-4052-9ed4-e97abbd11b0b","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":755,"width":757,"height":11}},{"id":"c5969f20-3c4f-43fc-a2ab-0ab6972580b0","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":770,"width":835,"height":11}},{"id":"af9722ae-2b66-4285-a8e7-46231ccb228c","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) undertake such other","page_number":18,"box":{"x":68,"y":785,"width":800,"height":12}},{"id":"1dbda3f2-3af6-4ed8-9019-8559136c3d50","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Performance Oversight","page_number":18,"box":{"x":69,"y":801,"width":780,"height":11}},{"id":"885ff8c6-832b-45fc-85d3-a84941193ccc","block_type":"box","text":"Committee. The Board has adopted a written charter for the Performance Oversight Committee. During the fiscal year","page_number":18,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"d230b289-3a70-4af3-a93d-7af7f3442311","block_type":"box","text":"ended May 31, 2026, the Performance Oversight Committee met five times.","page_number":18,"box":{"x":69,"y":831,"width":544,"height":11}},{"id":"10874ab8-2df6-4088-b230-f39186dfcc8f","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":18,"box":{"x":101,"y":854,"width":186,"height":10}},{"id":"d56b820c-bc45-444a-8bc0-23dd8a412b2d","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":18,"box":{"x":293,"y":853,"width":598,"height":11}},{"id":"e7fd9f3f-ea3a-4133-bd63-f91bf5497191","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":18,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"9da68b6a-3f55-4d9b-b3b1-7cf4d7e656d2","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":18,"box":{"x":69,"y":884,"width":795,"height":11}},{"id":"89911fd8-9e1e-431a-befb-bac9d396ec22","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":18,"box":{"x":69,"y":899,"width":788,"height":11}},{"id":"8849bf08-6ed5-46f9-8100-0f3fde00a8da","block_type":"box","text":"I-9","page_number":18,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"e9734fe2-06cc-4a3d-bf1a-cde1fd4d397c","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":18,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"df80855a-2d8d-4b08-9ff5-ed0a27ba38a3","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":45,"width":813,"height":11}},{"id":"5bfb23b6-8778-47a9-a96d-ed1019c34a98","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written charter for the Ad Hoc Topics Committee. During","page_number":19,"box":{"x":68,"y":60,"width":816,"height":11}},{"id":"f8e54b58-1157-482f-a913-64d4d6db1d89","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":75,"width":575,"height":11}},{"id":"cb2f2aa5-c731-4bca-bc91-b07baede1234","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":98,"width":771,"height":11}},{"id":"ffeb19f6-1277-42a1-91c6-c0b023029e36","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":113,"width":827,"height":11}},{"id":"a57aad68-061a-4424-b8ba-e50b227e9b5d","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":128,"width":830,"height":11}},{"id":"272ed346-03a1-48cd-9c61-1e2c71f93d1e","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Furthermore,","page_number":19,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"43437c63-3206-4292-aeaf-5a3208b05b9e","block_type":"box","text":"in determining that a particular Independent Trustee was and continues to be qualified to serve as a Trustee, the","page_number":19,"box":{"x":70,"y":158,"width":807,"height":11}},{"id":"1ca145e3-c9d9-4e5e-9274-7516bb342109","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":173,"width":787,"height":11}},{"id":"b177a5f1-1835-4bf5-b99e-b10dbefc11cf","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":19,"box":{"x":69,"y":188,"width":805,"height":11}},{"id":"ea3bed88-c042-434f-b21f-41f390680065","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":203,"width":794,"height":12}},{"id":"e3e1aed0-33a6-4b28-849a-8d4eaf818943","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":219,"width":829,"height":11}},{"id":"5710241c-e01a-4e25-8945-57e0165f82f9","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":234,"width":823,"height":11}},{"id":"a77799f6-747a-448e-a4f1-47d84e777980","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":249,"width":771,"height":11}},{"id":"7a906167-2e1f-4d40-8a5a-27c102dd90c1","block_type":"box","text":"business judgment in the performance of their duties as Trustees.","page_number":19,"box":{"x":69,"y":264,"width":473,"height":11}},{"id":"c4be0112-e668-4aa1-b136-5ed43dcb535e","block_type":"box","text":"Each Trustee’s ability to perform his or her duties effectively is evidenced by his or her educational background","page_number":19,"box":{"x":102,"y":286,"width":792,"height":12}},{"id":"91165ebf-74c6-46b6-bd03-d46144f91a44","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":302,"width":807,"height":11}},{"id":"876816b4-2302-4a5b-a573-63e0a78c159b","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":317,"width":837,"height":11}},{"id":"a9a83979-2136-48d2-9ff6-d00875e4adff","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":332,"width":759,"height":11}},{"id":"cda36da2-b457-40ee-86d8-f8b615033dcc","block_type":"box","text":"participation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":19,"box":{"x":70,"y":347,"width":685,"height":11}},{"id":"50711960-8bef-4fa4-9cf5-5f526ff4c325","block_type":"box","text":"ad hoc","page_number":19,"box":{"x":762,"y":347,"width":47,"height":9}},{"id":"fb0b6206-ea59-49b4-ad57-f599d9d8c3f0","block_type":"box","text":"committees","page_number":19,"box":{"x":814,"y":347,"width":82,"height":9}},{"id":"d4bfc9ca-e99e-4b83-9fe5-1b06b89628dc","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":19,"box":{"x":68,"y":362,"width":395,"height":11}},{"id":"f9be16dd-c2ac-4c5e-8807-83e097aa6c40","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":385,"width":751,"height":11}},{"id":"4994a959-c4e2-4d55-883a-2e4165f9ec03","block_type":"box","text":"support the conclusion that each Trustee should serve on the Board.","page_number":19,"box":{"x":69,"y":400,"width":492,"height":11}},{"id":"ad95ee32-83b1-40a1-a979-bb1a3eaa16a8","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":19,"box":{"x":68,"y":428,"width":409,"height":9}},{"id":"2393976e-e276-4f27-8a4c-d93453e047a1","block_type":"box","text":"Independent Trustees","page_number":19,"box":{"x":70,"y":445,"width":154,"height":11}},{"id":"7bf4a887-6a94-435f-89f7-f89a12878070","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":460,"width":781,"height":11}},{"id":"7eee4487-5c77-4c48-9717-f5c7322ed956","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":19,"box":{"x":265,"y":475,"width":604,"height":11}},{"id":"15f54b6d-d76a-4197-aac9-f7bfe7814d11","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":490,"width":623,"height":11}},{"id":"7219ddae-c054-4b3b-b5ba-c629ec2d3ce4","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":505,"width":637,"height":11}},{"id":"4f259955-8d0d-472e-a8b6-50498d182c27","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":520,"width":631,"height":12}},{"id":"9aa5313c-87ca-4972-93a3-47df92841a6d","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the North American","page_number":19,"box":{"x":264,"y":535,"width":626,"height":11}},{"id":"483c4010-85df-48b6-b3e4-218d03a9897e","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":550,"width":639,"height":11}},{"id":"94b3bfcd-5920-45fe-b144-8ddb4c2b3c2d","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":19,"box":{"x":264,"y":566,"width":637,"height":11}},{"id":"30b04c9d-9a32-457b-9e45-d7fec8e71c17","block_type":"box","text":"expertise across asset classes and strategies, and insight and perspective on the","page_number":19,"box":{"x":265,"y":581,"width":586,"height":11}},{"id":"75535688-a563-41ed-92aa-c02c8c94d5f4","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":596,"width":640,"height":11}},{"id":"292e82d4-9b18-4410-8897-c1b8dead76aa","block_type":"box","text":"Committee and the Performance Oversight Committee.","page_number":19,"box":{"x":265,"y":611,"width":389,"height":11}},{"id":"aa636a15-4df8-457f-b66a-5940046107f7","block_type":"box","text":"Susan J. Carter Susan J. Carter has over 35 years of experience in investment management. She has","page_number":19,"box":{"x":69,"y":634,"width":806,"height":11}},{"id":"da1d27fa-c489-4121-92f0-ae2e5468d074","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":19,"box":{"x":265,"y":649,"width":604,"height":11}},{"id":"640977a6-b87d-4029-8dda-6a4c0167c756","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":19,"box":{"x":265,"y":664,"width":632,"height":11}},{"id":"d673d4dd-400c-4504-b1e2-8a26af2ee312","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":679,"width":562,"height":9}},{"id":"3f16fe4b-8c01-416f-b814-f90717354481","block_type":"box","text":"Ms. Carter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":19,"box":{"x":265,"y":694,"width":616,"height":11}},{"id":"dd187919-0d55-42b2-9f61-0db431903030","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":19,"box":{"x":264,"y":709,"width":591,"height":11}},{"id":"dd4c7bcf-ee31-4939-a830-46d20b6d5833","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":724,"width":641,"height":11}},{"id":"c55036fd-31b0-4238-8843-3256bbabe883","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":739,"width":638,"height":12}},{"id":"d810293d-9d48-4643-a3bd-f926f06aa6af","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":755,"width":584,"height":11}},{"id":"de6e7970-7789-4708-bcd1-b841cdf494fc","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":19,"box":{"x":265,"y":770,"width":630,"height":11}},{"id":"09d795b2-9c7f-4a0e-94a9-bbc572427961","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":19,"box":{"x":265,"y":785,"width":634,"height":11}},{"id":"0845683d-eee6-4ffe-9c65-a8b5c5e6fd4d","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":19,"box":{"x":265,"y":800,"width":599,"height":11}},{"id":"e534dcbd-3762-4119-ac65-337f13b007f7","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":19,"box":{"x":265,"y":815,"width":407,"height":11}},{"id":"9158f209-574c-46e1-9d3b-cd79bac96637","block_type":"box","text":"I-10","page_number":19,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"9a8ab740-bf4c-4ed9-a1fe-4c2365e9e8bd","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":19,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c1340459-5d7f-4759-b383-b3041ef688d2","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":20,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"d5f2a8d0-b329-4531-8a88-3aede97567d8","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":"2fc82a03-76bb-492a-a901-32a2455c9c49","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":"6970838f-0c60-4beb-a8a5-f9654bad8335","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":"35774e22-a206-4343-bb64-da5dc1be88ac","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":"69975e3b-4b8c-4b8d-908a-0005718d4739","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":"804cb111-fa7a-486f-8fa9-e500c335ff9c","block_type":"box","text":"perspective on the markets and the economy.","page_number":20,"box":{"x":265,"y":141,"width":323,"height":11}},{"id":"97e91b32-9a28-4a9a-a008-f4186c75172c","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":"ed263940-3656-4dc2-83b6-e29ae81ca15b","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":"d2d40e5b-7911-440d-a033-f4fd988d6827","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":"39b8bccc-a5de-4808-adca-072276671524","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":"7590a016-464a-4bfd-88b6-884138b99065","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":"6a9a7cbb-645e-4885-b8ff-cb9f6c799284","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial expert, as such","page_number":20,"box":{"x":265,"y":239,"width":616,"height":11}},{"id":"55a79ec2-cfca-444b-ae2b-708673adb73c","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":"5e2c51ea-4441-4ab0-a1ac-969e3dbc78cb","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":"b3363885-5938-46b2-ae63-44775e6d3078","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":"3c63abb7-1916-4672-81ab-5f98e6e2a8c3","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":"9573e092-5308-4b42-8eef-7ca878b4908e","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":"a18eb819-df17-42f8-8992-05dd27e79f22","block_type":"box","text":"partner at Deloitte and Arthur Andersen for approximately 17 years. These positions have","page_number":20,"box":{"x":265,"y":338,"width":638,"height":11}},{"id":"3d51642e-7a79-4772-a3ce-0ca8110df44c","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":"fe9e1423-c500-47f5-a356-6d17c93cadd2","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":"64c803a8-94b3-46cf-a105-a29181c20279","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Trustees prior to becoming an","page_number":20,"box":{"x":265,"y":383,"width":625,"height":11}},{"id":"d9669a7c-d9af-4345-bfa3-c60c0f6ab6af","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":"e2c2951f-1a0e-4774-88df-c55900985cdc","block_type":"box","text":"audit committee financial expert, as such term is defined in the applicable Commission","page_number":20,"box":{"x":265,"y":413,"width":623,"height":11}},{"id":"f58fea85-bc11-427b-9696-e196f112b1c1","block_type":"box","text":"rules.","page_number":20,"box":{"x":265,"y":428,"width":38,"height":9}},{"id":"f3d7b8bd-5254-43ff-a121-b9bde5211902","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":"34188c1d-ba47-4928-850c-9ea93d3f3c28","block_type":"box","text":"global expertise gained through his 35 year career at KPMG, a global professional","page_number":20,"box":{"x":264,"y":466,"width":584,"height":11}},{"id":"9b647d13-6a91-4008-b1ee-7de7fe666649","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":"411639cf-9d4d-49d7-8598-ec65c2a08b1e","block_type":"box","text":"organizations. 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Mr. Keizer’s experience also includes service as an","page_number":20,"box":{"x":265,"y":526,"width":642,"height":12}},{"id":"1d22a0e0-6e45-44c7-8b8e-84944c79ce7b","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":"7dd22391-fae1-46fd-af95-2b9c5a75f7d1","block_type":"box","text":"industries including professional services, property and casualty reinsurance, insurance,","page_number":20,"box":{"x":265,"y":557,"width":630,"height":11}},{"id":"a2097bbe-8ec1-4965-8b7f-2204cae2326b","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":"858f0d9b-a853-4e54-85b7-217728569bef","block_type":"box","text":"technology. Mr. Keizer is a certified public accountant and also served on the board of the","page_number":20,"box":{"x":264,"y":587,"width":643,"height":11}},{"id":"955f9226-01ca-4fbc-ad93-cf8a4fa58049","block_type":"box","text":"American Institute of Certified Public Accountants. Mr. Keizer has been determined by the","page_number":20,"box":{"x":264,"y":602,"width":639,"height":11}},{"id":"76ddd176-1b73-4485-9ef7-2d32012ecca4","block_type":"box","text":"Audit Committee to be an audit committee financial expert, as such term is defined in the","page_number":20,"box":{"x":264,"y":617,"width":641,"height":11}},{"id":"c6d9deef-4883-4410-a14d-6428bf9002d7","block_type":"box","text":"applicable Commission rules.","page_number":20,"box":{"x":265,"y":632,"width":208,"height":11}},{"id":"9276c701-9e07-4e80-8349-726417476a66","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":"7a904ba1-fa9b-4559-a0cd-59fa48638863","block_type":"box","text":"investment companies, most recently as a member of the boards of certain BlackRock","page_number":20,"box":{"x":265,"y":670,"width":621,"height":11}},{"id":"f78166e5-108a-4fe2-a279-0bde77821ee2","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":"2a4b3003-6631-4800-843d-0dc6003c9747","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":"6e0bd485-aec6-4fcc-8c26-e3c2c23d57c9","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":"76252050-216a-4b46-85a9-786a5ca34434","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":"3c4c686a-7508-47d3-affb-d9fc5c4f76ae","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":"f8b45f25-5d68-4482-9354-f89904640e7b","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":"c3b5b1d5-50f3-4f7e-acf5-3db246c2a718","block_type":"box","text":"articles and books on these topics.","page_number":20,"box":{"x":265,"y":776,"width":251,"height":11}},{"id":"2dca2085-4bc1-4ab9-8cbc-983414dbee45","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":"b801cd94-fc8f-41fc-b79f-437d2e3e334e","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":"9b53eb23-3295-4b47-8ab5-2327cd81e955","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a partner,","page_number":20,"box":{"x":264,"y":829,"width":593,"height":11}},{"id":"3c712dc5-24e6-4fa2-8961-f9e906ae423a","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":"c3bf440c-46be-4cc0-9b1c-064d1b791f25","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":"49affa0e-bab9-4e6c-858a-53dbd3b4ffdb","block_type":"box","text":"I-11","page_number":20,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"5834c98f-5521-46d4-8448-2bd9fbbc40eb","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":20,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e125a821-9aee-459e-9f1e-e59ccfb4dd62","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":21,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"1ab5995d-3e69-4999-b022-e738ac727023","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":"255f58c4-2ac4-4361-b9c1-2fcaa4ffa3ea","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":"ff090922-4798-4331-8f17-ae9adb304fa0","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":"730991fd-22f3-498f-938f-e9a51265573f","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":"e8c9483b-efdb-4c0e-bd7d-06c064e1a8db","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":"a6d779d9-ef64-4029-bdc5-9e5a00e1619b","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":"152dfeee-edd8-40a8-9cf3-f2ddf5938d84","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":"4efdb5e8-3475-4829-ab0b-f34837bf8eba","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Arthur","page_number":21,"box":{"x":265,"y":171,"width":629,"height":12}},{"id":"c1f82465-813a-4edf-85a0-02317310133e","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":"98fa2b24-226a-43b3-93f5-9156b99d4725","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":"e711057b-d1f7-43ad-9c4d-77bb3870b716","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":"b0757b57-59f4-4adc-b438-d322ca4df2ab","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":"ec8e380d-1978-492f-813a-ce747a656c3e","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":"5bc8eaab-8d22-497c-a687-81dcdb3fac43","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":"66081f09-0aad-4bdf-9243-5ae0d6621257","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":"71c7ce4e-b631-422b-9183-ec01cfc90f74","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":"f80c0f65-b17b-4989-9640-8e8a8831a6ac","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":"c4d3ccef-3f70-4670-915d-831ee6ede9cd","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":"7c627069-584c-4e4e-9549-6bdac7ed1bb0","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":"7cfd3629-748a-4451-b234-bbd736c37dab","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":"5e1c783a-dec3-49a0-be5a-18f8a82f4e78","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":"ef47d252-0c27-4979-91c4-492ee030b793","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":"9d6aa1c2-cd6f-478b-9dfc-0848dfec1b71","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":"69601277-5fca-4c16-b453-a09e849c84c1","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":"a6392c84-41bd-4564-91bb-def99819a9b5","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":"7a24d929-c179-4a5d-9ca5-36cb85af6c9c","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":"6cc35915-5304-49ed-b6b3-984eb9e00a25","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":"9d91c807-e294-46bf-a1b2-51e5700da823","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":"bf4f1e98-e812-4e68-8e8b-3c666a4cf443","block_type":"box","text":"various private and non-profit boards.","page_number":21,"box":{"x":264,"y":496,"width":265,"height":11}},{"id":"3235f431-58ec-4705-a2a3-6166c46d2a00","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":"14ddc8a7-93ab-4363-a617-25483c014bf4","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":"49bf02be-166c-412a-ae22-01f306213371","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":"df071477-928e-48b6-89da-d588a56dd4aa","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":"5ccc9d1b-a612-49cc-a34a-1d3ca6825811","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":"ed89b61d-b145-457f-ae8a-6e465193615b","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":"aeb77da8-360e-4016-886e-4bc281365f9a","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":"e8ce5a7d-0f7e-4913-9fad-ae4566fb5d4c","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":"918732fc-190d-4f3b-ac24-0073884cbd99","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":"6c540509-6bd3-4751-bb97-e26a896e9d0a","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as consultant to the Independent","page_number":21,"box":{"x":265,"y":655,"width":583,"height":11}},{"id":"adc9230c-b51a-47ae-bd65-5011fcca6629","block_type":"box","text":"Trustees prior to becoming an Independent Trustee.","page_number":21,"box":{"x":264,"y":670,"width":369,"height":11}},{"id":"4022d828-ad96-4e2e-8573-b5481178cd44","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":"bce971ef-c842-4732-828f-4cef6efd6c10","block_type":"box","text":"companies, most recently as a member of the boards of certain BlackRock-advised Funds","page_number":21,"box":{"x":264,"y":708,"width":641,"height":11}},{"id":"89c0b444-d069-444e-ab64-733f34392ada","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":"4b089e60-b430-4eba-be27-ad8484830ac7","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":"bb1bb94a-e9ed-485c-bf5e-746dde9388ed","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":"c8e34977-46f0-4c93-b173-cab3d3e576d0","block_type":"box","text":"be an audit committee financial expert, as such term is defined in the applicable","page_number":21,"box":{"x":265,"y":768,"width":575,"height":11}},{"id":"b2dba63f-87b1-4b0e-afdc-bca4f84234e6","block_type":"box","text":"Commission rules.","page_number":21,"box":{"x":265,"y":784,"width":131,"height":9}},{"id":"f75d8f5a-ce25-47d5-b4a3-22f71d7768e9","block_type":"box","text":"I-12","page_number":21,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"67c36b91-de89-4ff3-bf19-f6b04a10fe1f","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":21,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"035d77ab-89f3-4bcc-ad7a-7ad911563ed4","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":22,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"1e1be650-05ce-4676-844b-19fee01c7ada","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":"251cc46e-b642-438e-bfa5-8a757d79c8bd","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liberty Square Asset","page_number":22,"box":{"x":265,"y":81,"width":630,"height":11}},{"id":"c822cae7-f272-41fb-b7f1-06210e886ee7","block_type":"box","text":"Management, LP / Steel Partners Japan Asset Management, LP from 1998 to 2015, an","page_number":22,"box":{"x":265,"y":96,"width":627,"height":11}},{"id":"4d599316-4fad-419e-b6be-623078242aa1","block_type":"box","text":"investment manager that specialized in long/short non-U.S. equity investments, and was","page_number":22,"box":{"x":265,"y":111,"width":632,"height":11}},{"id":"705b894a-1149-42ff-90fd-d5542b02ff6e","block_type":"box","text":"an owner and General Partner of Neon Liberty Capital Management, LLC from 2003 to","page_number":22,"box":{"x":265,"y":126,"width":615,"height":11}},{"id":"7a64fe89-230b-417c-8955-3dd416e850e7","block_type":"box","text":"2023, a firm focusing on long/short equities in global emerging and frontier markets.","page_number":22,"box":{"x":265,"y":141,"width":608,"height":11}},{"id":"c5a92038-b167-4810-9070-b4be7580afd8","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":"2d8100f8-d2f7-4119-9d65-f86ffd8dce35","block_type":"box","text":"economy. 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Walton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":79,"y":901,"width":465,"height":9}},{"id":"7d880c72-8ae5-48e8-a307-056d7f898134","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":633,"y":900,"width":254,"height":11}},{"id":"ee70360c-401e-4f0d-afe8-56b25d06d4f7","block_type":"box","text":"I-18","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"4ae2c2a4-ec2a-4630-b69a-083895fefc66","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":27,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c246c4b0-baa6-488a-9ca9-0b17125c4d99","block_type":"box","text":"Name","page_number":28,"box":{"x":69,"y":69,"width":32,"height":7}},{"id":"d744c8a9-5fce-4b8d-8b61-25b018cce029","block_type":"box","text":"Dollar Range of Equity","page_number":28,"box":{"x":586,"y":59,"width":129,"height":9}},{"id":"60630180-7376-47d5-9170-8e4810422c28","block_type":"box","text":"Securities in the Fund","page_number":28,"box":{"x":586,"y":69,"width":128,"height":7}},{"id":"5b5b8523-be29-4bd5-ae94-68162d0c42b6","block_type":"box","text":"Aggregate Dollar Range of","page_number":28,"box":{"x":755,"y":49,"width":155,"height":9}},{"id":"b663827b-0f3b-470a-bb45-2025c1aa703e","block_type":"box","text":"Equity Securities in","page_number":28,"box":{"x":776,"y":59,"width":112,"height":9}},{"id":"0e3c4e68-ea00-4301-bd78-85c6df64d1c9","block_type":"box","text":"Supervised Funds","page_number":28,"box":{"x":781,"y":69,"width":102,"height":9}},{"id":"2bdb3ed2-6585-4aff-af9b-aec178ba9211","block_type":"box","text":"Interested Trustees","page_number":28,"box":{"x":70,"y":102,"width":138,"height":9}},{"id":"ede69574-a300-4a9a-bf52-f63ae6861aae","block_type":"box","text":"Robert Fairbairn","page_number":28,"box":{"x":79,"y":117,"width":113,"height":9}},{"id":"d9d27b1e-d785-4829-a86b-4fae3ca13f73","block_type":"box","text":"...........................................","page_number":28,"box":{"x":200,"y":125,"width":344,"height":1}},{"id":"a6a63615-e5dd-4c57-b674-1114c48c5b4a","block_type":"box","text":"None Over $100,000","page_number":28,"box":{"x":633,"y":116,"width":254,"height":12}},{"id":"7519aabb-17ca-4006-844c-36b1702d8bd5","block_type":"box","text":"John M. 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As of December 31, 2025","page_number":28,"box":{"x":69,"y":193,"width":819,"height":11}},{"id":"12f07d29-c645-4202-8917-f9cccb52e1a8","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":28,"box":{"x":69,"y":208,"width":834,"height":11}},{"id":"75faaefe-4792-42b5-8026-6a50ce2d2f32","block_type":"box","text":"their immediate family members owned beneficially or of record any securities of the Fund’s investment adviser,","page_number":28,"box":{"x":68,"y":223,"width":798,"height":11}},{"id":"886e2f62-f8c4-40e0-9def-b181f80da95a","block_type":"box","text":"principal underwriter, or any person directly or indirectly controlling, controlled by, or under common control with such","page_number":28,"box":{"x":70,"y":238,"width":831,"height":11}},{"id":"ca5a8af4-1d29-4019-9014-0e7fca5bdf4c","block_type":"box","text":"entities.","page_number":28,"box":{"x":69,"y":253,"width":56,"height":9}},{"id":"58f3c116-4bb1-4265-abcc-2d7d5c80bfba","block_type":"box","text":"Compensation of Trustees","page_number":28,"box":{"x":69,"y":283,"width":190,"height":11}},{"id":"5095e139-e7d9-4c50-b2b3-88ce179310ce","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":28,"box":{"x":102,"y":305,"width":791,"height":12}},{"id":"4aad48cb-260d-4852-a8db-90ea00cd8c7b","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":28,"box":{"x":68,"y":321,"width":810,"height":11}},{"id":"1b59079d-772a-4667-844e-832ba13b1441","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":28,"box":{"x":70,"y":336,"width":838,"height":12}},{"id":"c6edcc18-6422-424e-9168-9e78d3c81a68","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":28,"box":{"x":69,"y":351,"width":807,"height":12}},{"id":"ec8830da-f4a7-4a01-99cc-23a8a92698b8","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":28,"box":{"x":69,"y":366,"width":791,"height":12}},{"id":"3f0512bb-105a-4d15-9b40-b156c2dc365f","block_type":"box","text":"together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":28,"box":{"x":68,"y":382,"width":786,"height":11}},{"id":"aa56306b-d74c-47ec-80aa-6e044b770ac4","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":28,"box":{"x":69,"y":397,"width":769,"height":11}},{"id":"0a4af340-b057-43d5-b55e-3e7a41318f17","block_type":"box","text":"Committee and Performance Oversight Committee are paid as compensation an additional annual retainer of","page_number":28,"box":{"x":69,"y":412,"width":778,"height":11}},{"id":"de1ded0d-c533-4b03-acf5-2240da2c5007","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":28,"box":{"x":69,"y":426,"width":689,"height":12}},{"id":"f0f09b64-f156-4a1a-9d2f-5418f346e7a2","block_type":"box","text":"The following table sets forth the compensation the Trust paid to the Trustees, on behalf of the Fund, for the","page_number":28,"box":{"x":101,"y":450,"width":776,"height":11}},{"id":"a93c40f8-e5b9-47ca-95c3-d38fe58f1052","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":28,"box":{"x":68,"y":465,"width":841,"height":11}},{"id":"300984bc-061f-4727-9455-2223036fc124","block_type":"box","text":"calendar year ended December 31, 2025.","page_number":28,"box":{"x":69,"y":480,"width":298,"height":11}},{"id":"7e988813-54c7-4f78-923b-11dfdcb095e4","block_type":"box","text":"Name","page_number":28,"box":{"x":69,"y":559,"width":32,"height":7}},{"id":"c8cc3f60-b3de-4666-8625-3ef54318721f","block_type":"box","text":"Compensation","page_number":28,"box":{"x":575,"y":549,"width":83,"height":8}},{"id":"163fa965-24e0-4de2-88bf-f7e9c2cd2b87","block_type":"box","text":"from the Fund","page_number":28,"box":{"x":576,"y":559,"width":80,"height":7}},{"id":"fc1882e0-b779-4e0f-95ea-e1a2ef8390cb","block_type":"box","text":"Estimated","page_number":28,"box":{"x":699,"y":528,"width":58,"height":7}},{"id":"1abe9159-c5ba-493a-99cf-ecabcf39992c","block_type":"box","text":"Annual","page_number":28,"box":{"x":708,"y":539,"width":39,"height":7}},{"id":"b18706c2-3cbb-4e34-b822-2313c49440f5","block_type":"box","text":"Benefits upon","page_number":28,"box":{"x":688,"y":548,"width":79,"height":9}},{"id":"dd58a237-441f-422a-95b8-d897975770bd","block_type":"box","text":"Retirement","page_number":28,"box":{"x":696,"y":559,"width":64,"height":7}},{"id":"1f87ec5c-f32b-442c-9c95-dbdefd1e3f59","block_type":"box","text":"Aggregate","page_number":28,"box":{"x":823,"y":508,"width":61,"height":9}},{"id":"a891a084-f999-449e-8fde-8e607ed7dcff","block_type":"box","text":"Compensation","page_number":28,"box":{"x":812,"y":518,"width":83,"height":9}},{"id":"a2290cce-f548-4bda-afea-711828395323","block_type":"box","text":"from the Fund","page_number":28,"box":{"x":813,"y":528,"width":80,"height":7}},{"id":"8da1f3e8-ed16-49c3-b9b3-a7a00d47d28b","block_type":"box","text":"and Other","page_number":28,"box":{"x":825,"y":538,"width":57,"height":8}},{"id":"1b79b05e-0087-4191-950a-bff50df83663","block_type":"box","text":"BlackRock-Advised","page_number":28,"box":{"x":798,"y":549,"width":111,"height":7}},{"id":"69fa3a55-4f37-4c6d-8916-69fcd786f298","block_type":"box","text":"Funds","page_number":28,"box":{"x":835,"y":559,"width":33,"height":7}},{"id":"2f367b6b-ced9-475f-8399-7aec9bb598ec","block_type":"box","text":"1","page_number":28,"box":{"x":869,"y":559,"width":4,"height":3}},{"id":"ac47b129-d4af-45ce-a3c8-2b5a529deeb6","block_type":"box","text":"Independent Trustees","page_number":28,"box":{"x":70,"y":577,"width":154,"height":10}},{"id":"fb626912-5e55-463c-bf0a-a7d317604823","block_type":"box","text":"Christopher J. Ailman","page_number":28,"box":{"x":79,"y":592,"width":149,"height":10}},{"id":"031f3c42-b97a-494c-9079-a2792ddd0103","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,938","page_number":28,"box":{"x":232,"y":591,"width":411,"height":11}},{"id":"11d57742-bc29-4939-ad14-db60c171a844","block_type":"box","text":"None $445,000","page_number":28,"box":{"x":711,"y":591,"width":179,"height":11}},{"id":"d098c508-211d-4a75-bf8a-986529b3fdcd","block_type":"box","text":"Susan J. Carter","page_number":28,"box":{"x":79,"y":607,"width":110,"height":9}},{"id":"1714aacb-bfe1-48f5-9494-ec152375532e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,938","page_number":28,"box":{"x":192,"y":606,"width":451,"height":11}},{"id":"96bed488-9b73-4f72-b67c-c0acf635c493","block_type":"box","text":"None $445,000","page_number":28,"box":{"x":711,"y":606,"width":179,"height":11}},{"id":"61504dd7-39b4-443e-b8ce-bd4899bdb129","block_type":"box","text":"Collette Chilton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,938","page_number":28,"box":{"x":79,"y":621,"width":564,"height":11}},{"id":"7af5a1cf-0f91-46e8-98fd-0089abbf0151","block_type":"box","text":"None $445,000","page_number":28,"box":{"x":711,"y":621,"width":179,"height":11}},{"id":"c9ad221a-d81b-4b48-9dae-ced20a87ce8d","block_type":"box","text":"Neil A. Cotty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,170","page_number":28,"box":{"x":79,"y":636,"width":564,"height":12}},{"id":"e39253b4-932e-43e9-b9c7-156b41a941eb","block_type":"box","text":"None $467,500","page_number":28,"box":{"x":711,"y":636,"width":179,"height":11}},{"id":"e74407f7-e0fa-4bb1-a8ae-b16f006419bb","block_type":"box","text":"Jeffrey Jarczyk","page_number":28,"box":{"x":78,"y":652,"width":103,"height":11}},{"id":"49fceca7-633b-4704-b207-a961adb1c2d1","block_type":"box","text":"2","page_number":28,"box":{"x":181,"y":652,"width":4,"height":5}},{"id":"cb99276c-1456-4452-96aa-384e33784520","block_type":"box","text":"............................................","page_number":28,"box":{"x":192,"y":659,"width":352,"height":2}},{"id":"dba8d0f8-77cc-4b2c-9a1d-6a07723e55b2","block_type":"box","text":"$968 None None","page_number":28,"box":{"x":598,"y":651,"width":273,"height":11}},{"id":"9eff371f-0809-4a14-9eed-d64b8989bdbb","block_type":"box","text":"Henry R. Keizer","page_number":28,"box":{"x":79,"y":667,"width":109,"height":11}},{"id":"367696c3-11bb-4a1c-a648-d3433749e21e","block_type":"box","text":"3","page_number":28,"box":{"x":189,"y":667,"width":4,"height":5}},{"id":"bf9ca01a-38b7-4bc1-a6a0-32e5f46380ce","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,556","page_number":28,"box":{"x":200,"y":666,"width":443,"height":11}},{"id":"517695b3-4b5c-4aaf-b627-e84dbfd4a13f","block_type":"box","text":"None $490,000","page_number":28,"box":{"x":711,"y":666,"width":179,"height":11}},{"id":"c28ad18f-638a-4fb7-ab6f-d599268dd35c","block_type":"box","text":"Cynthia A. Montgomery","page_number":28,"box":{"x":79,"y":682,"width":164,"height":11}},{"id":"0858b76d-afc7-4532-a744-3373336630d1","block_type":"box","text":"4","page_number":28,"box":{"x":244,"y":683,"width":4,"height":4}},{"id":"f12a127a-841d-4f5b-a0c4-1fbb31672bc0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,352","page_number":28,"box":{"x":257,"y":681,"width":385,"height":12}},{"id":"7327ce81-800b-40cb-933a-b712777df103","block_type":"box","text":"None $490,000","page_number":28,"box":{"x":711,"y":681,"width":179,"height":12}},{"id":"bc24823c-981f-445e-afcc-cd5aa88c9496","block_type":"box","text":"Donald C. Opatrny","page_number":28,"box":{"x":79,"y":697,"width":129,"height":11}},{"id":"9c2cde06-de91-4e8b-a7e5-762f84953239","block_type":"box","text":"5","page_number":28,"box":{"x":208,"y":698,"width":4,"height":4}},{"id":"f544cd7f-456c-431d-a5ba-b3a4afcecb47","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,352","page_number":28,"box":{"x":216,"y":697,"width":426,"height":11}},{"id":"5c350002-b640-41a4-a2fe-889fac7a027d","block_type":"box","text":"None $490,000","page_number":28,"box":{"x":711,"y":697,"width":179,"height":11}},{"id":"e8cf65b5-09ec-496d-aaf9-2e8287d7494f","block_type":"box","text":"Lori Richards","page_number":28,"box":{"x":79,"y":713,"width":91,"height":8}},{"id":"f7c4332b-0434-4aae-af47-1006abaf8f9a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,938","page_number":28,"box":{"x":183,"y":712,"width":460,"height":11}},{"id":"5a00b201-356f-4461-abd1-fd5f70bc67ea","block_type":"box","text":"None $445,000","page_number":28,"box":{"x":711,"y":712,"width":179,"height":11}},{"id":"3870269e-d2be-4113-905b-694b45eaace1","block_type":"box","text":"Mark Stalnecker","page_number":28,"box":{"x":79,"y":728,"width":115,"height":8}},{"id":"abd21947-77b1-4be0-9bd4-923142d02d92","block_type":"box","text":"6","page_number":28,"box":{"x":194,"y":728,"width":5,"height":4}},{"id":"51ac64ed-4dce-418f-bdb2-b7eb7472998e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,318","page_number":28,"box":{"x":208,"y":727,"width":435,"height":11}},{"id":"da365769-c5c6-481f-9456-d98719f705bf","block_type":"box","text":"None $595,000","page_number":28,"box":{"x":711,"y":727,"width":179,"height":11}},{"id":"612ec723-7da6-4963-8960-0a1e67d80153","block_type":"box","text":"Marc D. Stern","page_number":28,"box":{"x":79,"y":743,"width":97,"height":9}},{"id":"8adfb5ff-6a6f-4a7c-8926-334a4b8f7772","block_type":"box","text":"2","page_number":28,"box":{"x":178,"y":743,"width":4,"height":4}},{"id":"2d42dd45-4851-41c1-b33c-fcd2bc7cede2","block_type":"box","text":"............................................","page_number":28,"box":{"x":192,"y":750,"width":352,"height":1}},{"id":"44978c5c-5212-4384-9c23-29202b0197a6","block_type":"box","text":"$968 None None","page_number":28,"box":{"x":598,"y":742,"width":273,"height":10}},{"id":"7f7b6c9a-2d69-40db-98fb-4f434eaf4e91","block_type":"box","text":"Kenneth L. Urish","page_number":28,"box":{"x":79,"y":758,"width":117,"height":9}},{"id":"79b5959a-a9b6-43a5-81bd-0fe211971148","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,938","page_number":28,"box":{"x":200,"y":757,"width":443,"height":11}},{"id":"ebd6c2ec-5b0d-4c55-aee4-873184a37ef5","block_type":"box","text":"None $445,000","page_number":28,"box":{"x":711,"y":757,"width":179,"height":11}},{"id":"ace2738f-76c2-429b-9b97-96fcca999817","block_type":"box","text":"Claire A. Walton","page_number":28,"box":{"x":79,"y":773,"width":111,"height":9}},{"id":"a5e575e5-b42f-4e66-afa2-1df7fda87cd3","block_type":"box","text":"7","page_number":28,"box":{"x":192,"y":773,"width":3,"height":5}},{"id":"b77ed577-e6ea-4cf5-8fa8-4c5cf298bcd9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,352","page_number":28,"box":{"x":200,"y":772,"width":442,"height":11}},{"id":"f4ec5b80-2e13-44e1-9a7d-f2cda7c046a5","block_type":"box","text":"None $490,000","page_number":28,"box":{"x":711,"y":772,"width":179,"height":11}},{"id":"9db72737-547a-49c0-97dc-9e230f9a5b13","block_type":"box","text":"Interested Trustees","page_number":28,"box":{"x":70,"y":788,"width":138,"height":9}},{"id":"cd8e39c4-82b8-47e2-a164-6c4b5a19b5b1","block_type":"box","text":"Robert Fairbairn","page_number":28,"box":{"x":79,"y":803,"width":113,"height":9}},{"id":"84d705b4-594c-4183-bf30-9cf10af6b057","block_type":"box","text":"...........................................","page_number":28,"box":{"x":200,"y":811,"width":344,"height":1}},{"id":"125aca50-43d8-4650-a626-bdeb36ae541b","block_type":"box","text":"None None None","page_number":28,"box":{"x":599,"y":803,"width":272,"height":9}},{"id":"c1113826-f5a8-4fe0-b7e0-8709c7f4d285","block_type":"box","text":"John M. Perlowski","page_number":28,"box":{"x":78,"y":818,"width":127,"height":9}},{"id":"4e3ca4c4-5376-456f-9cb3-988a2fe9fcd9","block_type":"box","text":"..........................................","page_number":28,"box":{"x":208,"y":826,"width":336,"height":1}},{"id":"3ddaf4c9-4530-4f70-8f8f-dc9f7fb0f8d6","block_type":"box","text":"None None None","page_number":28,"box":{"x":599,"y":818,"width":272,"height":9}},{"id":"cc9e1877-81bb-45b1-890a-e3d20211f83b","block_type":"box","text":"1","page_number":28,"box":{"x":69,"y":843,"width":3,"height":3}},{"id":"1703008e-cfe1-484c-a88c-8474b99c29cc","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":843,"width":786,"height":9}},{"id":"00d51940-4e4e-4f1e-84d7-9d78585eda7f","block_type":"box","text":"page I-13.","page_number":28,"box":{"x":94,"y":853,"width":55,"height":9}},{"id":"cae45570-fae3-4b27-9bcc-f359d81a3c6a","block_type":"box","text":"2","page_number":28,"box":{"x":69,"y":865,"width":3,"height":4}},{"id":"c0fc42de-fe3d-4653-bc53-9d9344a455e9","block_type":"box","text":"Compensation includes $968 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":865,"width":724,"height":9}},{"id":"2e4b8c1f-e758-4952-836a-f996cac4913c","block_type":"box","text":"3","page_number":28,"box":{"x":69,"y":878,"width":3,"height":4}},{"id":"92f62c91-bb64-4973-bf23-21f2e56041cb","block_type":"box","text":"Chair of the Audit Committee.","page_number":28,"box":{"x":93,"y":878,"width":168,"height":7}},{"id":"e40e7a34-96d9-4bf2-8cc7-7779d14a79a7","block_type":"box","text":"4","page_number":28,"box":{"x":68,"y":891,"width":4,"height":3}},{"id":"44a3b621-31b9-4404-bf80-d70d71da1bc7","block_type":"box","text":"Chair of the Governance Committee.","page_number":28,"box":{"x":93,"y":890,"width":206,"height":8}},{"id":"166d6d42-76ec-4dc1-8e50-0153b050c58a","block_type":"box","text":"5","page_number":28,"box":{"x":69,"y":903,"width":3,"height":4}},{"id":"6df1e606-fefe-4a53-b1f7-b868483d38c3","block_type":"box","text":"Chair of the Performance Oversight Committee.","page_number":28,"box":{"x":93,"y":903,"width":269,"height":9}},{"id":"6c643af4-a332-473b-9380-a1341c0053fc","block_type":"box","text":"I-19","page_number":28,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"751d9cec-2ce2-452a-9132-aaee2e70e9fe","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":28,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9eb4bb2d-2154-4ecb-ba56-2cc472f39a13","block_type":"box","text":"6","page_number":29,"box":{"x":69,"y":45,"width":3,"height":4}},{"id":"8427388a-f2f8-4989-94f3-e46a1dd2d687","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":29,"box":{"x":93,"y":45,"width":352,"height":9}},{"id":"05fee5c8-e167-4c9d-9012-fe30fc1ae205","block_type":"box","text":"7","page_number":29,"box":{"x":69,"y":58,"width":3,"height":3}},{"id":"e59e7d4d-55c3-498e-b43d-d914e0cd62e9","block_type":"box","text":"Chair of the Compliance Committee.","page_number":29,"box":{"x":93,"y":58,"width":205,"height":9}},{"id":"73ea7df4-041b-48ff-9bd9-c01312906201","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":29,"box":{"x":69,"y":86,"width":432,"height":11}},{"id":"3db89cb3-29b3-4bc9-9ee2-ed883054ac0c","block_type":"box","text":"Management Agreement","page_number":29,"box":{"x":69,"y":117,"width":180,"height":11}},{"id":"eb1c9399-b463-41fd-a8fe-26c3b81ed0c0","block_type":"box","text":"The Trust, on behalf of the Fund, has entered into an investment advisory agreement with BlackRock (the","page_number":29,"box":{"x":101,"y":139,"width":751,"height":11}},{"id":"82ca6547-6f3c-412f-bdd8-e9896f835359","block_type":"box","text":"“Management Agreement”) pursuant to which BlackRock is entitled to receive fees for the services it provides.","page_number":29,"box":{"x":70,"y":154,"width":788,"height":12}},{"id":"c0877bad-bc9b-4a21-b371-cf6bfdc51c28","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s","page_number":29,"box":{"x":102,"y":177,"width":762,"height":11}},{"id":"2bd03577-83c9-4c85-99ee-be3e363fb5e2","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":29,"box":{"x":69,"y":192,"width":799,"height":11}},{"id":"67a794e8-d97f-47d9-88a4-dce9eaa89701","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":29,"box":{"x":68,"y":207,"width":726,"height":11}},{"id":"57c62846-adf2-4043-b1e0-17180dbd984d","block_type":"box","text":"June 30, 2028. BlackRock has contractually agreed to waive its management fees by the amount of investment","page_number":29,"box":{"x":69,"y":222,"width":797,"height":12}},{"id":"5675055b-559e-4d5b-95e6-488faa540147","block_type":"box","text":"advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by","page_number":29,"box":{"x":69,"y":237,"width":789,"height":12}},{"id":"17b5254c-7bc3-4eca-9d94-a2c05f28fcdd","block_type":"box","text":"BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’","page_number":29,"box":{"x":70,"y":252,"width":810,"height":12}},{"id":"189c7661-d1e7-4615-b146-c27e38c726ac","block_type":"box","text":"notice by a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of the","page_number":29,"box":{"x":69,"y":268,"width":827,"height":11}},{"id":"c4c906b8-42e4-4c37-97c3-165aabef8313","block_type":"box","text":"Fund.","page_number":29,"box":{"x":70,"y":283,"width":36,"height":9}},{"id":"9530c3c8-b634-4eb7-83dd-1257c0f37762","block_type":"box","text":"BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual","page_number":29,"box":{"x":102,"y":305,"width":778,"height":12}},{"id":"a81953c7-218b-4ca4-8a5f-c04bb9d0d0af","block_type":"box","text":"Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest","page_number":29,"box":{"x":70,"y":321,"width":824,"height":11}},{"id":"37c51200-a5c2-4a39-9dff-c5ba8a843bf6","block_type":"box","text":"Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 0.75% (for Investor A Shares),","page_number":29,"box":{"x":70,"y":336,"width":795,"height":11}},{"id":"d0c14a2b-8a02-463f-8cb2-4a24142f5a0a","block_type":"box","text":"1.50% (for Investor C Shares), 0.50% (for Institutional Shares), 1.00% (for Class R Shares), 0.45% (for Class K","page_number":29,"box":{"x":70,"y":351,"width":791,"height":11}},{"id":"3b2e0895-8ebb-4037-a327-0f41c93df431","block_type":"box","text":"Shares) and 0.75% (for Service Shares) of average daily net assets through June 30, 2028. The contractual","page_number":29,"box":{"x":69,"y":366,"width":769,"height":11}},{"id":"4ba7f210-cc92-45cc-8884-00405a8c2d89","block_type":"box","text":"agreement may be terminated upon 90 days’ notice by a majority of the non-interested directors of the corporation or","page_number":29,"box":{"x":69,"y":381,"width":836,"height":11}},{"id":"f1156221-2289-4c5c-b327-e83dae995c3d","block_type":"box","text":"by a vote of a majority of the outstanding voting securities of the Fund.","page_number":29,"box":{"x":69,"y":396,"width":502,"height":11}},{"id":"5102875f-e0b5-4202-8c68-0f5695db7176","block_type":"box","text":"Pursuant to the Management Agreement, BlackRock may from time to time, in its sole discretion to the extent","page_number":29,"box":{"x":102,"y":419,"width":784,"height":11}},{"id":"c666032d-9e3a-4c3e-b21a-2e81e51f4f2d","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of BlackRock, to","page_number":29,"box":{"x":70,"y":434,"width":838,"height":11}},{"id":"7f3c123a-df9f-4950-abc8-04b81e51ee7f","block_type":"box","text":"perform investment advisory services with respect to the Fund. In addition, BlackRock may delegate certain of its","page_number":29,"box":{"x":70,"y":449,"width":810,"height":11}},{"id":"db44dfca-78da-45b9-b441-0c8737350bd5","block_type":"box","text":"investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":29,"box":{"x":70,"y":464,"width":779,"height":11}},{"id":"443b6f7b-5912-4986-9fa9-ad7670ed68f9","block_type":"box","text":"permitted by applicable law. BlackRock may terminate any or all sub-advisers or such delegation arrangements in its","page_number":29,"box":{"x":70,"y":480,"width":827,"height":11}},{"id":"18ca9da9-db80-4c99-baf8-b4e4f52da43b","block_type":"box","text":"sole discretion at any time to the extent permitted by applicable law.","page_number":29,"box":{"x":69,"y":495,"width":486,"height":11}},{"id":"466be0bc-bf01-4d1f-bf22-7f6a6d20b49a","block_type":"box","text":"The table below sets forth information about the total management fees paid by the Trust to BlackRock, on","page_number":29,"box":{"x":101,"y":517,"width":765,"height":11}},{"id":"a102eb1d-9993-43fa-8105-8db8c9d20fd5","block_type":"box","text":"behalf of the Fund, and/or the amounts waived and reimbursed, for the periods shown.","page_number":29,"box":{"x":69,"y":532,"width":620,"height":11}},{"id":"ffbe19c7-4f4d-4f32-b434-01482a1b9fbb","block_type":"box","text":"Fees Paid","page_number":29,"box":{"x":586,"y":561,"width":55,"height":7}},{"id":"eeebde5f-079a-47e3-96b8-ea8c699c03b9","block_type":"box","text":"to BlackRock","page_number":29,"box":{"x":574,"y":571,"width":79,"height":7}},{"id":"b18a38d7-064a-433b-ae24-5c87e630c268","block_type":"box","text":"Fees Waived","page_number":29,"box":{"x":700,"y":561,"width":72,"height":7}},{"id":"8714c71a-fb6a-4907-98ce-2d771a83def6","block_type":"box","text":"by BlackRock","page_number":29,"box":{"x":696,"y":571,"width":80,"height":8}},{"id":"1ceaae8f-ea2d-4d28-8a2b-ed08e0b96919","block_type":"box","text":"Fees Reimbursed","page_number":29,"box":{"x":810,"y":561,"width":99,"height":7}},{"id":"18688bc0-546c-44b5-87b4-962c049bc791","block_type":"box","text":"by BlackRock","page_number":29,"box":{"x":820,"y":571,"width":80,"height":8}},{"id":"e7e94e38-3515-4008-90d3-ef6b2d992ed2","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $27,502,808 $2,037,464 $2,869,134","page_number":29,"box":{"x":70,"y":588,"width":833,"height":11}},{"id":"7b9674f5-1df8-48fd-9435-899a1bc09eb6","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,669,011 $1,273,443 $1,301,485","page_number":29,"box":{"x":70,"y":603,"width":833,"height":12}},{"id":"f2dc9f0f-e718-4c80-9ff0-181f089f49c6","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,321,773 $1,217,740 $1,079,861","page_number":29,"box":{"x":70,"y":618,"width":833,"height":12}},{"id":"809166bd-07ab-4234-ac02-11ae6ec3cd57","block_type":"box","text":"Administration Agreement","page_number":29,"box":{"x":68,"y":650,"width":191,"height":11}},{"id":"1f25b5c1-cef2-4c79-ad14-3e350d25f72c","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":673,"width":711,"height":11}},{"id":"7f48d7fc-10d0-4cbf-aec1-d2b3e779cf96","block_type":"box","text":"administration agreement (the “Administration Agreement”). The Administrator has agreed to maintain office facilities","page_number":29,"box":{"x":69,"y":688,"width":838,"height":11}},{"id":"da16ee51-b434-446a-8ba9-de2909bc8d4d","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":703,"width":830,"height":11}},{"id":"f0742a15-5f37-4740-aba5-9e20eb0e24e9","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":718,"width":813,"height":11}},{"id":"3775cf1e-84b3-40b4-bb05-0031edc1250c","block_type":"box","text":"returns; prepare certain reports required by regulatory authorities; calculate various contractual expenses; determine","page_number":29,"box":{"x":69,"y":733,"width":837,"height":11}},{"id":"06ba6b36-19d8-4c5b-866f-104ea0593d90","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":748,"width":836,"height":12}},{"id":"bfaa4c35-920b-4710-a0b3-3a152d43cf2f","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":763,"width":785,"height":12}},{"id":"2062d811-fd3f-4193-a78c-2b94af79f6da","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":778,"width":765,"height":12}},{"id":"296f850a-53fb-494b-9b20-28e506c3b4d0","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":794,"width":819,"height":11}},{"id":"1e36d31f-817d-402a-975e-06ea67169981","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":809,"width":818,"height":11}},{"id":"4a9001cc-b332-4d27-bd50-a66ffb9fe972","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":824,"width":840,"height":11}},{"id":"348dc3c5-5dda-46cc-af00-d87fab025bb8","block_type":"box","text":"reimburse the Fund for expenses.","page_number":29,"box":{"x":69,"y":839,"width":238,"height":11}},{"id":"4aa6ae8b-a6b0-481b-9f84-f69440f54354","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":862,"width":802,"height":11}},{"id":"311716da-c62c-4533-9fed-183565a2e4af","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":876,"width":830,"height":12}},{"id":"898690f1-0d66-44a5-833e-77e547a88d72","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":891,"width":788,"height":12}},{"id":"0f816b80-3897-4dc7-ad5d-40296ebac4e9","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":906,"width":785,"height":12}},{"id":"404eba3e-5e98-4b13-877a-e7df5de35f1f","block_type":"box","text":"I-20","page_number":29,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"a94e9ad8-96b8-40f5-8283-f366668ac28b","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":29,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5eea9a1d-0671-492d-952b-6f1d812b6a69","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":30,"box":{"x":69,"y":44,"width":816,"height":12}},{"id":"a78eaf78-800f-4cc0-a0ca-2b4ab9b90faf","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":30,"box":{"x":69,"y":59,"width":805,"height":12}},{"id":"63481704-0d8f-4390-9b59-d745ec3cd8a5","block_type":"box","text":"shares of the Fund.","page_number":30,"box":{"x":69,"y":75,"width":137,"height":9}},{"id":"7dace88f-9051-4600-8a92-dab26714f155","block_type":"box","text":"The table below sets forth information about the administration fees paid by the Trust on behalf of the Fund, to","page_number":30,"box":{"x":101,"y":98,"width":793,"height":11}},{"id":"8df45fd0-ce21-4ab8-b36d-167d933308d0","block_type":"box","text":"the Administrator, and the amounts waived, for the periods shown.","page_number":30,"box":{"x":68,"y":113,"width":474,"height":11}},{"id":"91de8ce5-9b63-47e0-83c3-37f7102eb078","block_type":"box","text":"Fees Paid","page_number":30,"box":{"x":720,"y":141,"width":56,"height":7}},{"id":"b4d07348-9826-4fa9-ae58-f4a4d4a046ee","block_type":"box","text":"to the","page_number":30,"box":{"x":731,"y":151,"width":34,"height":7}},{"id":"6922af16-2473-41f6-9c90-118744c42c73","block_type":"box","text":"Administrator","page_number":30,"box":{"x":709,"y":161,"width":79,"height":7}},{"id":"0cbbdcf2-d400-479e-88a6-b6a868554f55","block_type":"box","text":"Fees Waived","page_number":30,"box":{"x":830,"y":141,"width":72,"height":7}},{"id":"bdbdcc6d-88ba-4756-b107-b1b81ffaf088","block_type":"box","text":"by 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.","page_number":30,"box":{"x":70,"y":194,"width":269,"height":11}},{"id":"0a684138-4415-4b05-bb98-daf612b75d8d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":30,"box":{"x":345,"y":193,"width":382,"height":11}},{"id":"9beb4cfe-b8a5-4944-8da0-fea40c4c61d9","block_type":"box","text":"575,696 $ 541,125","page_number":30,"box":{"x":729,"y":193,"width":180,"height":11}},{"id":"45a6ecab-d82c-4c92-a303-e9e81230109d","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . .","page_number":30,"box":{"x":70,"y":209,"width":269,"height":11}},{"id":"301ccfbc-ff51-4596-9b2e-ad0719970168","block_type":"box","text":"......................................... $","page_number":30,"box":{"x":345,"y":208,"width":368,"height":11}},{"id":"dfa7c74b-0311-4d1f-95a9-88941b84e40e","block_type":"box","text":"861,725 $ 286,567","page_number":30,"box":{"x":729,"y":208,"width":179,"height":12}},{"id":"8de41e10-d725-4140-86d9-958faac82a44","block_type":"box","text":"The Trust and its service providers may engage third party plan administrators who provide trustee,","page_number":30,"box":{"x":101,"y":233,"width":708,"height":11}},{"id":"63a61c78-43fa-409b-a139-1d53879dc583","block_type":"box","text":"administrative and recordkeeping services for certain employee benefit, profit-sharing and retirement plans as agents","page_number":30,"box":{"x":69,"y":248,"width":838,"height":11}},{"id":"a48198b4-8ee6-4bb8-b3f9-ad268e2d0027","block_type":"box","text":"for the Trust with respect to such plans, for the purpose of accepting orders for the purchase and redemption of","page_number":30,"box":{"x":68,"y":263,"width":800,"height":12}},{"id":"562cd960-9ff7-4549-a838-f4b3eb20a5f6","block_type":"box","text":"shares of the 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The Trust, on behalf of the Fund,","page_number":30,"box":{"x":69,"y":316,"width":824,"height":11}},{"id":"6a2cb673-1e51-4ebf-a50d-93373bc23d36","block_type":"box","text":"reimburses BlackRock for its costs in maintaining the service center, which costs include, among other things,","page_number":30,"box":{"x":69,"y":331,"width":787,"height":12}},{"id":"96fd5995-4e67-4865-9988-2a8b01cc9467","block_type":"box","text":"employee salaries, leasehold expenses, and other out-of-pocket expenses.","page_number":30,"box":{"x":69,"y":346,"width":531,"height":12}},{"id":"5a7f5a4c-339b-4be2-841a-7aa5a2341773","block_type":"box","text":"For the periods shown, the Trust on behalf of the Fund reimbursed BlackRock for shareholder liaison services","page_number":30,"box":{"x":102,"y":369,"width":780,"height":11}},{"id":"18d459d5-6668-40d0-8faf-631b0b82d17e","block_type":"box","text":"pursuant to such agreement in the amounts set forth below.","page_number":30,"box":{"x":70,"y":384,"width":427,"height":11}},{"id":"c9994216-e9a2-416e-8ec6-e6639a3b9913","block_type":"box","text":"Fees Paid to BlackRock Fees Waived by BlackRock","page_number":30,"box":{"x":583,"y":412,"width":327,"height":9}},{"id":"022e502d-50ef-412a-b8b4-de856a4174af","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . .","page_number":30,"box":{"x":70,"y":430,"width":253,"height":11}},{"id":"6ec3fdf8-c512-45b6-b554-2de8f453b297","block_type":"box","text":"............................","page_number":30,"box":{"x":329,"y":438,"width":222,"height":1}},{"id":"e037fbb4-ee6c-4ab2-9274-8e32206bf815","block_type":"box","text":"$71,559 $71,559","page_number":30,"box":{"x":621,"y":429,"width":241,"height":12}},{"id":"23bf2dab-b6fe-4a6c-91d0-da243263da32","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . .","page_number":30,"box":{"x":70,"y":445,"width":253,"height":11}},{"id":"89ae80ac-e153-43b1-9f15-b68579d0a51a","block_type":"box","text":"............................","page_number":30,"box":{"x":329,"y":453,"width":222,"height":1}},{"id":"8e398573-26fd-4c29-a0c0-0607d8ef9d3a","block_type":"box","text":"$31,634 $31,634","page_number":30,"box":{"x":621,"y":445,"width":241,"height":11}},{"id":"d155e3b5-d975-4265-9786-1e884da56656","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . .","page_number":30,"box":{"x":70,"y":460,"width":253,"height":12}},{"id":"33b31ed6-9d6d-459b-9d99-313475d4cd28","block_type":"box","text":"............................","page_number":30,"box":{"x":329,"y":468,"width":222,"height":1}},{"id":"fbede207-726c-4789-a338-3678b3d3d383","block_type":"box","text":"$29,023 $29,023","page_number":30,"box":{"x":621,"y":460,"width":241,"height":11}},{"id":"6747dd89-99c2-483c-b830-af5de4beddcb","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":30,"box":{"x":69,"y":492,"width":335,"height":11}},{"id":"d270f9db-dad1-4ac1-9289-2b290d87a546","block_type":"box","text":"Raffaele Savi, Kevin Franklin and Richard Mathieson are the portfolio managers and are jointly and primarily","page_number":30,"box":{"x":102,"y":515,"width":770,"height":11}},{"id":"665d1fbc-c319-4af7-888d-6dc412e03c28","block_type":"box","text":"responsible for the day-to-day management of the Fund.","page_number":30,"box":{"x":69,"y":530,"width":395,"height":11}},{"id":"ec25febd-6386-41cc-bdb0-84fea4cdfbea","block_type":"box","text":"Other Funds and Accounts Managed","page_number":30,"box":{"x":69,"y":560,"width":258,"height":11}},{"id":"368707e5-0931-490f-8240-aa2fc0cba448","block_type":"box","text":"The following table sets forth information about the funds and accounts other than the Fund for which the","page_number":30,"box":{"x":101,"y":583,"width":753,"height":11}},{"id":"7838f7a2-7f13-4e8e-9f38-b1a18f2c712e","block_type":"box","text":"portfolio managers are primarily responsible for the day-to-day portfolio management as of May 31, 2026.","page_number":30,"box":{"x":70,"y":598,"width":755,"height":11}},{"id":"d18cb4cb-8c38-4bce-9d24-e6f55013f41f","block_type":"box","text":"Number of Other Accounts Managed","page_number":30,"box":{"x":365,"y":626,"width":211,"height":9}},{"id":"bf92a701-0a4a-4d15-a330-d2b065df2005","block_type":"box","text":"and Assets by Account Type","page_number":30,"box":{"x":388,"y":636,"width":165,"height":9}},{"id":"cccb041d-8b4e-4236-b518-755db2e987ab","block_type":"box","text":"Number of Other Accounts and Assets","page_number":30,"box":{"x":655,"y":626,"width":222,"height":7}},{"id":"cca51ab8-5645-4555-bf28-b6fde300bdc1","block_type":"box","text":"for Which Advisory Fee is Performance-Based","page_number":30,"box":{"x":633,"y":636,"width":265,"height":9}},{"id":"858035a9-5fe0-4712-8cc6-75c4ba824237","block_type":"box","text":"Name of Portfolio Manager","page_number":30,"box":{"x":74,"y":679,"width":157,"height":9}},{"id":"8e9bdda5-6f69-442c-829c-83bcf7feb321","block_type":"box","text":"Other","page_number":30,"box":{"x":354,"y":649,"width":31,"height":7}},{"id":"4b0172ff-2ec8-49cb-944d-0d4ca3d90b00","block_type":"box","text":"Registered","page_number":30,"box":{"x":338,"y":659,"width":62,"height":9}},{"id":"4702eb72-c863-45af-a644-914d9329d24e","block_type":"box","text":"Investment","page_number":30,"box":{"x":337,"y":669,"width":65,"height":7}},{"id":"1eba87ef-03f4-4580-ad42-9ddb0264182b","block_type":"box","text":"Companies","page_number":30,"box":{"x":337,"y":679,"width":64,"height":9}},{"id":"debe00e2-e6dd-480d-b662-66407929df94","block_type":"box","text":"Other 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Pooled","page_number":30,"box":{"x":720,"y":659,"width":75,"height":7}},{"id":"1c749af4-fdfc-4fe2-bf50-c7a958b29701","block_type":"box","text":"Investment","page_number":30,"box":{"x":726,"y":669,"width":64,"height":7}},{"id":"d446f33e-96e2-4f3b-8707-093e633a9563","block_type":"box","text":"Vehicles","page_number":30,"box":{"x":734,"y":679,"width":48,"height":7}},{"id":"5eced494-59a7-446c-9297-3d87c193afac","block_type":"box","text":"Other","page_number":30,"box":{"x":843,"y":669,"width":32,"height":7}},{"id":"7b2d6f8b-47d7-4e94-94a6-1bcbab196045","block_type":"box","text":"Accounts","page_number":30,"box":{"x":832,"y":679,"width":54,"height":7}},{"id":"ac0d0c1a-2355-4dfb-ab9e-e168bc2702ce","block_type":"box","text":"Kevin Franklin 10 300 33 0 9 6","page_number":30,"box":{"x":74,"y":693,"width":788,"height":7}},{"id":"5cebb500-135d-4c5e-b793-a21b75f47052","block_type":"box","text":"$15.73 Billion $23.57 Billion $54.50 Billion $0 $6.00 Billion $13.55 Billion","page_number":30,"box":{"x":329,"y":705,"width":570,"height":8}},{"id":"33f6e22e-818b-4981-9e29-0c4f40e78cb3","block_type":"box","text":"Richard Mathieson 35 423 46 0 5 9","page_number":30,"box":{"x":74,"y":718,"width":788,"height":7}},{"id":"34602c2b-9ee5-4475-a573-3396fd2d8506","block_type":"box","text":"$36.26 Billion $51.33 Billion $81.28 Billion $0 $3.46 Billion $15.63 Billion","page_number":30,"box":{"x":329,"y":730,"width":570,"height":8}},{"id":"c1eaa0c3-8378-4ddc-9a72-55b8912ee9fd","block_type":"box","text":"Raffaele Savi 38 67 19 0 12 3","page_number":30,"box":{"x":74,"y":743,"width":788,"height":7}},{"id":"ede30386-eff3-4520-847f-371895e389b8","block_type":"box","text":"$47.37 Billion $58.02 Billion $42.55 Billion $0 $22.75 Billion $4.93 Billion","page_number":30,"box":{"x":329,"y":755,"width":566,"height":9}},{"id":"ac8e8b6b-7425-48e6-a8e7-87252636406d","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":30,"box":{"x":69,"y":790,"width":304,"height":11}},{"id":"69dcd14d-22ca-4b02-b387-6c4f40c65159","block_type":"box","text":"The discussion below describes the portfolio managers’ compensation as of May 31, 2026.","page_number":30,"box":{"x":101,"y":812,"width":656,"height":12}},{"id":"80221f3f-870f-4462-825d-7968e4e2e45a","block_type":"box","text":"BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career","page_number":30,"box":{"x":102,"y":835,"width":774,"height":11}},{"id":"c6070538-8686-408f-a520-03c265c3c038","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":850,"width":837,"height":12}},{"id":"836bc3d1-0b25-4372-991a-2551e64fde78","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":865,"width":823,"height":12}},{"id":"d9822f1c-28e3-4ed3-b5eb-5428273ce257","block_type":"box","text":"compensation include a base salary, a performance-based discretionary bonus, participation in various benefits","page_number":30,"box":{"x":69,"y":881,"width":799,"height":11}},{"id":"46fe08f6-acbd-4afb-8992-f076983742b9","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":30,"box":{"x":70,"y":896,"width":670,"height":11}},{"id":"be32aa4c-c0ab-492b-9c06-9c7034e7e75c","block_type":"box","text":"I-21","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"ac6502ac-8e29-4683-b55c-c53f0317e38b","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":30,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"36c66117-89c6-4142-adc5-c00c67497118","block_type":"box","text":"Base Compensation.","page_number":31,"box":{"x":102,"y":45,"width":148,"height":11}},{"id":"00ca6c63-bca4-4632-bd86-5d94d534385c","block_type":"box","text":"Generally, portfolio managers receive base compensation based on their position with the","page_number":31,"box":{"x":257,"y":45,"width":640,"height":11}},{"id":"efaea18f-f30d-4b17-98fd-6bda23550667","block_type":"box","text":"firm.","page_number":31,"box":{"x":68,"y":60,"width":32,"height":9}},{"id":"a0cd3cfe-6b94-4c15-9776-de6d04b1bf94","block_type":"box","text":"Discretionary Incentive Compensation","page_number":31,"box":{"x":69,"y":90,"width":277,"height":11}},{"id":"039a596f-b9ce-497f-8b28-4a309c9b53e2","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc.,","page_number":31,"box":{"x":102,"y":113,"width":792,"height":11}},{"id":"da5d8c91-1de5-4db6-b51c-c2f047afe63b","block_type":"box","text":"the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk","page_number":31,"box":{"x":68,"y":128,"width":800,"height":11}},{"id":"c4005b2f-1d4b-4c77-bda5-c5f19fa83ada","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to","page_number":31,"box":{"x":69,"y":143,"width":777,"height":11}},{"id":"301af4ad-01ce-4a08-b387-9a2531fb9b7e","block_type":"box","text":"predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these","page_number":31,"box":{"x":70,"y":158,"width":817,"height":11}},{"id":"581d4a86-165c-4391-af0b-b17906d1bc27","block_type":"box","text":"portfolios and BlackRock. Among other things, BlackRock’s Chief Investment Officers make a subjective","page_number":31,"box":{"x":70,"y":173,"width":741,"height":11}},{"id":"c636c0a8-d827-445c-88a2-99dc4c010b5a","block_type":"box","text":"determination with respect to each portfolio manager’s compensation based on the performance of the Funds and","page_number":31,"box":{"x":69,"y":188,"width":818,"height":12}},{"id":"6009fcef-43a8-4a16-b1bb-98ec2c9d1f5a","block_type":"box","text":"other accounts managed by each portfolio manager relative to the various benchmarks. Performance is generally","page_number":31,"box":{"x":69,"y":203,"width":806,"height":12}},{"id":"d3979098-369a-43f2-8099-02703b9cf312","block_type":"box","text":"assessed over trailing 1-, 3-, and 5-year periods relative to applicable benchmarks. The performance of Messrs. Savi,","page_number":31,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"82e45b0b-975f-4917-905b-7522fb15eb1f","block_type":"box","text":"Franklin and Mathieson is not measured against a specific benchmark.","page_number":31,"box":{"x":70,"y":234,"width":503,"height":11}},{"id":"ccfc259f-cd04-4d6c-91f1-753c428c5c23","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":31,"box":{"x":102,"y":256,"width":389,"height":11}},{"id":"5af24e58-bc9d-4552-a073-c78b504cb8de","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":31,"box":{"x":499,"y":257,"width":383,"height":10}},{"id":"22dfafc7-8e13-4cff-a05a-16d1b0f4b29c","block_type":"box","text":"portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":31,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"65144ef2-991c-47e3-95f8-e9169a1e22b6","block_type":"box","text":"that notionally track the return of certain BlackRock investment products.","page_number":31,"box":{"x":68,"y":286,"width":522,"height":12}},{"id":"f8dafb97-57f9-4aad-9786-922fb47b2d56","block_type":"box","text":"Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio","page_number":31,"box":{"x":102,"y":309,"width":760,"height":11}},{"id":"26dccfc8-df7a-4c7f-8b49-96aa40b64b97","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":324,"width":795,"height":12}},{"id":"feac75b0-1ab6-4aa5-9abb-7da35926ea61","block_type":"box","text":"awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive","page_number":31,"box":{"x":69,"y":339,"width":805,"height":12}},{"id":"570e6e56-2be5-40a8-9c95-22091a0a16e2","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a","page_number":31,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"3a938661-ed0c-4681-8e7e-781394f60721","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some","page_number":31,"box":{"x":68,"y":370,"width":839,"height":11}},{"id":"fdaa8a0f-c361-49f0-ace2-a40c653ea28d","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term","page_number":31,"box":{"x":69,"y":385,"width":802,"height":11}},{"id":"ba07416e-1de5-42ea-98a9-4e592a6296d8","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred","page_number":31,"box":{"x":70,"y":400,"width":820,"height":11}},{"id":"262a26d0-aeb8-452e-87fb-4fe024fe245d","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":415,"width":801,"height":11}},{"id":"f4890d93-7d7e-4706-b1a5-62414242f8c9","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio","page_number":31,"box":{"x":70,"y":430,"width":831,"height":11}},{"id":"569a28a0-9505-4146-b27b-b008fd2db966","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":31,"box":{"x":69,"y":445,"width":479,"height":12}},{"id":"5beff88f-0dbe-4ddc-a57d-4430cdffee87","block_type":"box","text":"For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the","page_number":31,"box":{"x":102,"y":468,"width":785,"height":11}},{"id":"a371bbf0-992a-4e1f-a6a9-a8931bfa20f6","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":483,"width":836,"height":11}},{"id":"1437984c-0af9-4ac5-a9be-d5eb916b8725","block_type":"box","text":"which provides direct alignment of portfolio manager discretionary incentive compensation with investment product","page_number":31,"box":{"x":68,"y":498,"width":821,"height":11}},{"id":"dc9035d3-7cd4-4103-b4e6-4fd08884bc25","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":513,"width":829,"height":11}},{"id":"fab915a0-5890-4433-bb38-3efa38f1bf14","block_type":"box","text":"portfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":31,"box":{"x":70,"y":528,"width":835,"height":12}},{"id":"f355b21d-e3b3-4523-b6f2-e5818c1b844b","block_type":"box","text":"eligible to participate in the deferred cash award program.","page_number":31,"box":{"x":69,"y":543,"width":414,"height":12}},{"id":"e2e02545-2483-455b-8a67-3def4cc6b66b","block_type":"box","text":"Other Compensation Benefits.","page_number":31,"box":{"x":101,"y":566,"width":218,"height":11}},{"id":"28623769-a7f6-40d8-b8aa-0a7842925b8e","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":31,"box":{"x":327,"y":566,"width":552,"height":11}},{"id":"c32dfab0-89eb-4757-a4c7-d1ed789df62f","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":31,"box":{"x":69,"y":581,"width":582,"height":12}},{"id":"69185e94-ddf5-4431-acab-da55e85eaa80","block_type":"box","text":"Incentive Savings Plans","page_number":31,"box":{"x":102,"y":604,"width":167,"height":11}},{"id":"c7c72d86-9326-4129-b436-568cfc32f0b0","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":31,"box":{"x":274,"y":604,"width":614,"height":11}},{"id":"23013cda-f1dc-478c-85f0-bfc672811bfb","block_type":"box","text":"employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":31,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"b200d393-3d67-458d-8244-693b59dd6f77","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":634,"width":785,"height":11}},{"id":"7bc91d6a-5e09-4c56-beb3-3b7647385b2e","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":649,"width":830,"height":12}},{"id":"7d27fcf6-3a0f-422e-852f-33b06a8ef74e","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":664,"width":799,"height":12}},{"id":"0d4f5f0e-b120-4501-b933-d09a8ffa139b","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":679,"width":831,"height":12}},{"id":"7654f122-b178-4aa1-8473-190d84d842f0","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":695,"width":798,"height":11}},{"id":"213fe708-6831-4613-a858-232e5d0e73b1","block_type":"box","text":"participants for their own contributions or, absent participant investment direction, are invested into a target date","page_number":31,"box":{"x":70,"y":710,"width":809,"height":11}},{"id":"07b2122f-e6d6-4820-8739-20652e5c6e5d","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for","page_number":31,"box":{"x":68,"y":725,"width":793,"height":11}},{"id":"83306c6f-068e-4591-811a-3057002ca308","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":740,"width":832,"height":11}},{"id":"1855e76b-89fc-4a65-9a19-292f02a523db","block_type":"box","text":"Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":31,"box":{"x":68,"y":755,"width":805,"height":11}},{"id":"2d545876-46e0-4f1a-bb0a-7cd4ba94ca1a","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to","page_number":31,"box":{"x":69,"y":770,"width":808,"height":12}},{"id":"6c487d0f-882d-42f3-9ad8-f97dd39e6762","block_type":"box","text":"participate in these plans.","page_number":31,"box":{"x":70,"y":786,"width":185,"height":10}},{"id":"048e22cf-b772-41b3-9f3d-7d85c3b356be","block_type":"box","text":"I-22","page_number":31,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"245d41dd-47cc-456b-8db1-852d8f6c145f","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":31,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"09f73667-44fc-49bd-afac-89529cfe3ed8","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":32,"box":{"x":69,"y":45,"width":268,"height":11}},{"id":"d5a2cef8-313e-482b-968c-6e59205addfb","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":32,"box":{"x":101,"y":67,"width":731,"height":12}},{"id":"64df4f37-bc35-4bcb-b144-76c86813b38e","block_type":"box","text":"beneficially owned by the portfolio managers in the Fund is shown below:","page_number":32,"box":{"x":69,"y":82,"width":519,"height":12}},{"id":"0aa40a0f-6c45-4aa7-8db2-ce2c8e528dc8","block_type":"box","text":"Portfolio Manager","page_number":32,"box":{"x":69,"y":121,"width":105,"height":9}},{"id":"f811801e-87ca-4f1d-a8d9-a376bd399326","block_type":"box","text":"Dollar Range of Equity","page_number":32,"box":{"x":758,"y":111,"width":129,"height":9}},{"id":"86a5b4e9-a92f-4ec3-953d-0cf310511943","block_type":"box","text":"Securities Beneficially Owned","page_number":32,"box":{"x":735,"y":121,"width":173,"height":9}},{"id":"a3ede911-275d-41cc-8325-20d46fa6844a","block_type":"box","text":"Raffaele Savi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":32,"box":{"x":70,"y":138,"width":770,"height":9}},{"id":"d6897ee3-0727-4c60-aeb7-f7ae855abdb2","block_type":"box","text":"Kevin Franklin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":154,"width":634,"height":9}},{"id":"8d1ed3d6-df3a-4ea6-8e09-64eb8efcbfaf","block_type":"box","text":"$500,001 - $1,000,000","page_number":32,"box":{"x":736,"y":153,"width":173,"height":11}},{"id":"e9ff787b-ff71-4e52-aec1-8c26b5cd1cf9","block_type":"box","text":"Richard Mathieson, CA","page_number":32,"box":{"x":70,"y":169,"width":161,"height":10}},{"id":"8d1dc36e-8556-4172-9f4a-e3d15831aecc","block_type":"box","text":"..........................................................","page_number":32,"box":{"x":238,"y":176,"width":466,"height":2}},{"id":"bbcb7458-4d6c-4a03-894b-c72a3e5ca58a","block_type":"box","text":"$100,001 - $500,000","page_number":32,"box":{"x":743,"y":168,"width":159,"height":11}},{"id":"39cc8a7e-297e-4349-bd04-ac30f366c964","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":32,"box":{"x":69,"y":200,"width":403,"height":12}},{"id":"71e19523-f35f-4cc8-8e82-0eda2cad4f87","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":32,"box":{"x":102,"y":223,"width":727,"height":11}},{"id":"5f73fad7-752c-456e-8bf6-5a908746dd55","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":32,"box":{"x":70,"y":238,"width":814,"height":11}},{"id":"3abac07e-e517-4590-a033-6cf99ce04066","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of","page_number":32,"box":{"x":70,"y":253,"width":837,"height":11}},{"id":"b4e6d249-dd1e-4ae5-b0c3-7119fbae6e4a","block_type":"box","text":"portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":32,"box":{"x":70,"y":268,"width":810,"height":12}},{"id":"60776aa2-f591-422b-be34-d3d1c6532895","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment","page_number":32,"box":{"x":69,"y":283,"width":782,"height":12}},{"id":"98950b42-6e6d-4c5d-83ec-9dc7bdf052d9","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":32,"box":{"x":69,"y":299,"width":830,"height":11}},{"id":"888e28e7-d220-4177-ad81-897014115d90","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":32,"box":{"x":69,"y":314,"width":828,"height":11}},{"id":"b4342424-83aa-42ab-a342-9d82b69e9d00","block_type":"box","text":"funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest","page_number":32,"box":{"x":68,"y":329,"width":834,"height":11}},{"id":"556c077d-8a99-43a3-a923-943ab6adabf2","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":32,"box":{"x":70,"y":344,"width":777,"height":11}},{"id":"8c3fbce0-082d-4029-bb9a-246b3cfb6ccb","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":32,"box":{"x":70,"y":359,"width":821,"height":11}},{"id":"bcd5ac9f-5225-4e50-9a6d-5f52f2f9dd4e","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":32,"box":{"x":69,"y":374,"width":819,"height":11}},{"id":"8b5e3436-a00d-4925-82ec-7e3e68825886","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":32,"box":{"x":69,"y":389,"width":832,"height":11}},{"id":"73e67521-7b24-4cd8-ba31-781df43a1489","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":32,"box":{"x":68,"y":404,"width":804,"height":11}},{"id":"6e6a8455-3a3b-47aa-aad5-f6988aa2484a","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":419,"width":760,"height":12}},{"id":"10ca81f0-2286-4296-b0f8-fa59b31a2c48","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":435,"width":834,"height":11}},{"id":"962a52ac-e42e-42bb-840c-bc9ee682d31d","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":450,"width":836,"height":11}},{"id":"35811161-a3c7-4f92-8c14-41b9959b0305","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":465,"width":822,"height":11}},{"id":"7582535e-8799-41d8-8579-d7fd47cabd81","block_type":"box","text":"public information. Certain portfolio managers also may manage accounts whose investment strategies may at times","page_number":32,"box":{"x":70,"y":480,"width":835,"height":11}},{"id":"09413013-2e46-4d0e-8883-36fe07919ddb","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Messrs. Savi, Franklin and Mathieson","page_number":32,"box":{"x":69,"y":495,"width":817,"height":11}},{"id":"90bbce81-398d-4bb9-81cb-713d5661fe4c","block_type":"box","text":"may be managing hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long","page_number":32,"box":{"x":69,"y":510,"width":834,"height":11}},{"id":"fc81ec74-d401-44b9-b7db-95beabb0650b","block_type":"box","text":"only accounts, subject to incentive fees. Messrs. Savi, Franklin and Mathieson may therefore be entitled to receive a","page_number":32,"box":{"x":69,"y":525,"width":832,"height":11}},{"id":"90b63970-4b8d-4c17-afea-adc938672452","block_type":"box","text":"portion of any incentive fees earned on such accounts.","page_number":32,"box":{"x":70,"y":540,"width":390,"height":12}},{"id":"57e3e15d-ba09-476c-b521-4afe1e8e348a","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":563,"width":788,"height":11}},{"id":"98a48e39-b494-4d6d-a149-3d8c5f5caa66","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":578,"width":839,"height":11}},{"id":"9cf263cf-2236-48c3-bf71-101194d81b77","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":593,"width":823,"height":12}},{"id":"5a21db45-51f8-4e8b-a840-5881a3b76f1a","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":32,"box":{"x":68,"y":608,"width":812,"height":12}},{"id":"4c1d8d19-c509-407c-a1dc-b46d1267d55b","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":32,"box":{"x":69,"y":623,"width":777,"height":12}},{"id":"6a9c5159-5512-4b6b-99f6-f24ba0c80585","block_type":"box","text":"investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.","page_number":32,"box":{"x":70,"y":639,"width":826,"height":11}},{"id":"899fc067-299b-42a9-b275-fe406a25f806","block_type":"box","text":"Accounting Services","page_number":32,"box":{"x":68,"y":669,"width":150,"height":11}},{"id":"0c65421c-1694-4be5-96f6-8859cd13fefc","block_type":"box","text":"The Bank of New York Mellon serves as the accounting services provider for the Fund. BNY MIS records","page_number":32,"box":{"x":101,"y":692,"width":740,"height":11}},{"id":"54bf646f-2ecc-4c6f-a7b3-3fde4f8a04f1","block_type":"box","text":"investment, capital share and income and expense activities; verifies and transmits trade tickets; maintains","page_number":32,"box":{"x":70,"y":707,"width":769,"height":11}},{"id":"a42d6c51-70c5-4175-9997-4d7dd2d935d0","block_type":"box","text":"accounting ledgers for investment securities; maintains tax lots; reconciles cash with the Fund’s custodian; reports","page_number":32,"box":{"x":69,"y":722,"width":823,"height":11}},{"id":"bd23d87a-323e-4f43-a736-243bc6621821","block_type":"box","text":"cash balances to BlackRock; prepares certain financial statements; calculates expenses, gains, losses and income;","page_number":32,"box":{"x":69,"y":737,"width":830,"height":11}},{"id":"54146f74-8ef4-4b84-b283-d272ccad1c9b","block_type":"box","text":"controls disbursements; works with independent pricing sources; and computes and reports net asset value. In","page_number":32,"box":{"x":69,"y":752,"width":795,"height":11}},{"id":"7c8d2085-9715-42ab-a98b-df63595b5377","block_type":"box","text":"connection with its accounting services, BNY MIS also provides certain administration services.","page_number":32,"box":{"x":69,"y":767,"width":683,"height":11}},{"id":"998f5ae7-bf3b-4339-ac0c-1a3b73b2d2c4","block_type":"box","text":"The table below shows the amounts paid by the Fund to BNY MIS for accounting services for the periods shown:","page_number":32,"box":{"x":101,"y":790,"width":800,"height":11}},{"id":"a5b6a891-c860-464b-bc7d-7797981106b6","block_type":"box","text":"Fees Paid to BNY MIS","page_number":32,"box":{"x":781,"y":818,"width":128,"height":7}},{"id":"61a4bb3f-1ad1-42bd-91f3-01eea0f5e673","block_type":"box","text":"Fiscal Year Ended May 31, 2026","page_number":32,"box":{"x":70,"y":836,"width":230,"height":11}},{"id":"c3ad7fc4-0f71-4bb2-835f-ba8a582c6476","block_type":"box","text":".......................................................","page_number":32,"box":{"x":308,"y":843,"width":442,"height":2}},{"id":"27f1965e-85b2-4cd9-9521-cb808c71c620","block_type":"box","text":"$395,813","page_number":32,"box":{"x":809,"y":835,"width":72,"height":11}},{"id":"3227f499-a00a-47a4-b1b3-3902cea4ea7f","block_type":"box","text":"Fiscal Year Ended May 31, 2025","page_number":32,"box":{"x":70,"y":851,"width":230,"height":11}},{"id":"ee97733c-9441-44c5-888c-0a551fa4bb38","block_type":"box","text":".......................................................","page_number":32,"box":{"x":308,"y":858,"width":442,"height":2}},{"id":"21821a64-6871-49be-b8ed-97c77bf53dfb","block_type":"box","text":"$185,481","page_number":32,"box":{"x":809,"y":850,"width":72,"height":11}},{"id":"0cee784f-8381-41cb-825b-d3685ad7d339","block_type":"box","text":"Fiscal Year Ended May 31, 2024","page_number":32,"box":{"x":70,"y":866,"width":230,"height":11}},{"id":"06033b24-0790-4bd1-bd7b-e2d0b2d84111","block_type":"box","text":".......................................................","page_number":32,"box":{"x":308,"y":874,"width":442,"height":1}},{"id":"c5c8f7bf-48d2-4320-aeae-8fa6079bcedd","block_type":"box","text":"$114,378","page_number":32,"box":{"x":809,"y":865,"width":72,"height":12}},{"id":"8494c0cc-4e64-4fba-bfb8-069430fec59e","block_type":"box","text":"I-23","page_number":32,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"7a1cfb46-e340-494f-8d9c-319fa11fe38c","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":32,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bc2b047f-e90d-4b6e-bf94-795674c52acc","block_type":"box","text":"Custodian","page_number":33,"box":{"x":69,"y":45,"width":72,"height":9}},{"id":"0b1d190a-76ce-40fb-9132-97854e377974","block_type":"box","text":"BNY Mellon, which has its principal place of business at 240 Greenwich Street, New York, NY 10286, also","page_number":33,"box":{"x":102,"y":67,"width":758,"height":11}},{"id":"965a615d-46d0-4c89-8344-cfcdfc0a5bce","block_type":"box","text":"serves as the custodian for the Fund (the “Custodian”). The Custodian, among other responsibilities, maintains a","page_number":33,"box":{"x":69,"y":82,"width":810,"height":12}},{"id":"3361a76b-cc52-4906-aa60-68de11353a8a","block_type":"box","text":"custody account or accounts in the name of the Fund, receives and delivers all assets for the Fund upon purchase","page_number":33,"box":{"x":69,"y":98,"width":815,"height":11}},{"id":"f497d305-605c-4c1f-a40f-b12a54bafea6","block_type":"box","text":"and upon sale or maturity, and collects and receives all income and other payments and distributions on account of","page_number":33,"box":{"x":69,"y":113,"width":824,"height":11}},{"id":"48110228-bd2b-41f8-8fdc-192d97684f8a","block_type":"box","text":"the assets of the Fund.","page_number":33,"box":{"x":68,"y":128,"width":165,"height":9}},{"id":"4ba89543-8f70-4af9-b342-335871c162ef","block_type":"box","text":"Transfer Agent","page_number":33,"box":{"x":68,"y":158,"width":107,"height":11}},{"id":"28d7090a-889c-461f-a0e6-554b2a0d47c0","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc., which has its principal place of business at 118 Flanders Road,","page_number":33,"box":{"x":102,"y":181,"width":764,"height":11}},{"id":"3b1198eb-5ec1-478f-9b67-afe95cc2d9d9","block_type":"box","text":"Westborough, Massachusetts 01581, serves as the transfer agent and dividend disbursing agent for the Fund.","page_number":33,"box":{"x":68,"y":196,"width":792,"height":11}},{"id":"25116815-e9c0-42d1-a1eb-c4cb260da336","block_type":"box","text":"Credit Agreement","page_number":33,"box":{"x":69,"y":226,"width":129,"height":11}},{"id":"15615f08-611b-47c2-9f2a-f2c1f2425782","block_type":"box","text":"The Trust, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates","page_number":33,"box":{"x":101,"y":249,"width":757,"height":11}},{"id":"4de00422-423a-4f0c-9eb6-04c5192089dd","block_type":"box","text":"(“Participating Funds”), is a party to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":33,"box":{"x":69,"y":263,"width":817,"height":12}},{"id":"343fb9e8-fb36-4877-95ba-c306626cb362","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":33,"box":{"x":68,"y":279,"width":743,"height":11}},{"id":"82cbc95a-88de-45f9-b8f5-b2d97b484e0a","block_type":"box","text":"commitments designated for certain Participating Funds, the Participating Funds, including the Fund, can borrow up","page_number":33,"box":{"x":69,"y":294,"width":825,"height":11}},{"id":"08cfe99c-64e1-462d-9606-957e4e44bc70","block_type":"box","text":"to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other","page_number":33,"box":{"x":68,"y":309,"width":818,"height":11}},{"id":"b3c3f930-707b-4f1c-a771-1568465d67f1","block_type":"box","text":"limitations as specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet","page_number":33,"box":{"x":70,"y":324,"width":761,"height":12}},{"id":"687af957-b4c0-45e6-855f-18d9ef7cca06","block_type":"box","text":"shareholder redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit","page_number":33,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"45600ae9-4e2e-47b5-b5eb-e310e0fa3a79","block_type":"box","text":"Agreement for leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectuses","page_number":33,"box":{"x":68,"y":355,"width":825,"height":11}},{"id":"4360140e-9de6-4bcf-87d9-d0c3eaa11649","block_type":"box","text":"and SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest expense and","page_number":33,"box":{"x":69,"y":370,"width":805,"height":11}},{"id":"2073fa21-adf9-4272-be31-47e13a2bd056","block_type":"box","text":"other fees and expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce","page_number":33,"box":{"x":69,"y":385,"width":838,"height":11}},{"id":"bb6f77c2-c81d-4819-b362-ea4aac05553b","block_type":"box","text":"the Fund’s return. The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate","page_number":33,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"65a27d05-4d29-4717-9c11-24a58c400723","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":33,"box":{"x":69,"y":415,"width":833,"height":11}},{"id":"36e8cb3e-e155-4f7b-a36f-125c366ec0e0","block_type":"box","text":"charged interest at a variable rate.","page_number":33,"box":{"x":69,"y":430,"width":245,"height":11}},{"id":"1783c7cd-9ea7-4dd6-b1e8-fbbaf88962bf","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":33,"box":{"x":68,"y":460,"width":491,"height":12}},{"id":"bb46e83b-2e76-442c-8ea3-fc0fb01d9f55","block_type":"box","text":"Set forth below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":33,"box":{"x":102,"y":483,"width":773,"height":11}},{"id":"ecbdad0f-9570-48b6-99d7-8fa1d1b684c3","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of the Manager (“affiliates”) for the periods shown.","page_number":33,"box":{"x":69,"y":498,"width":804,"height":11}},{"id":"45a3806b-0246-4b26-bb69-bc491fe7ac02","block_type":"box","text":"BlackRock Investments, LLC (“BRIL” or the “Distributor”) acts as the Fund’s sole distributor.","page_number":33,"box":{"x":70,"y":513,"width":656,"height":11}},{"id":"0354ccd6-add9-4900-bd59-35574d307f29","block_type":"box","text":"Investor A Shares","page_number":33,"box":{"x":669,"y":542,"width":102,"height":7}},{"id":"6b831e25-4135-4d07-873d-a7ef73f2d877","block_type":"box","text":"Gross","page_number":33,"box":{"x":551,"y":567,"width":32,"height":8}},{"id":"936327d3-e96f-4eb6-8aa0-afe9f8b4c840","block_type":"box","text":"Sales","page_number":33,"box":{"x":551,"y":578,"width":32,"height":7}},{"id":"e129016e-4107-4cb5-bbc6-a59133dde6e2","block_type":"box","text":"Charges","page_number":33,"box":{"x":543,"y":588,"width":48,"height":8}},{"id":"6d8219d6-0e03-4a88-bd4a-f5d49ced795f","block_type":"box","text":"Collected","page_number":33,"box":{"x":540,"y":598,"width":54,"height":7}},{"id":"df61dfa1-c8fc-4911-b37f-21d38b51967b","block_type":"box","text":"Sales","page_number":33,"box":{"x":652,"y":567,"width":31,"height":8}},{"id":"ba81fb78-178f-4749-a336-a9bfb084056c","block_type":"box","text":"Charges","page_number":33,"box":{"x":644,"y":578,"width":48,"height":8}},{"id":"0dbcb29e-af96-4f47-8d43-fd53cb8c72ad","block_type":"box","text":"Retained by","page_number":33,"box":{"x":634,"y":588,"width":68,"height":8}},{"id":"86ef6a8e-ce0c-4323-9c87-0034b14e4a26","block_type":"box","text":"BRIL","page_number":33,"box":{"x":655,"y":598,"width":27,"height":7}},{"id":"06f5f6dc-d5e0-45ff-acdd-769fff327098","block_type":"box","text":"Sales","page_number":33,"box":{"x":748,"y":567,"width":31,"height":8}},{"id":"60e59888-af14-4992-ae7b-f438ceb2c92f","block_type":"box","text":"Charges","page_number":33,"box":{"x":740,"y":578,"width":47,"height":8}},{"id":"3f0ae204-74dd-4224-966d-01f74148b1ab","block_type":"box","text":"Paid to","page_number":33,"box":{"x":744,"y":588,"width":40,"height":7}},{"id":"5d78705e-b1ed-45fb-9ced-8555679d4e5f","block_type":"box","text":"Affiliates","page_number":33,"box":{"x":738,"y":598,"width":51,"height":7}},{"id":"257a8d22-5390-4abc-a796-7113ceb36d5a","block_type":"box","text":"CDSCs","page_number":33,"box":{"x":847,"y":557,"width":40,"height":7}},{"id":"302d732a-8e1a-48e3-b2cf-f12d05aa9ea1","block_type":"box","text":"Received on","page_number":33,"box":{"x":832,"y":567,"width":70,"height":8}},{"id":"bd5d15d1-790d-40de-b934-cfd01961c8ff","block_type":"box","text":"Redemption of","page_number":33,"box":{"x":826,"y":577,"width":84,"height":9}},{"id":"839e608a-6db7-4667-87c5-885ba6c2c1a1","block_type":"box","text":"Load-Waived","page_number":33,"box":{"x":832,"y":588,"width":71,"height":7}},{"id":"458e7306-40b8-41b1-bf88-b45673bfabf3","block_type":"box","text":"Shares","page_number":33,"box":{"x":847,"y":598,"width":40,"height":7}},{"id":"f3e9a9a4-ca59-4e7d-93ac-9dd300256f8c","block_type":"box","text":"Fiscal Year Ended May 31, 2026 .","page_number":33,"box":{"x":70,"y":615,"width":242,"height":11}},{"id":"61c9f1b0-edc8-408f-8b3c-07c0d5085cc4","block_type":"box","text":".......................","page_number":33,"box":{"x":319,"y":623,"width":181,"height":1}},{"id":"6f7bc9a3-283f-4b39-94e9-cd4928e06978","block_type":"box","text":"$219,264 $17,765 $17,765 $2,325","page_number":33,"box":{"x":531,"y":615,"width":362,"height":11}},{"id":"a516ec4a-c0f5-4d57-bb13-f2a5f8fb44a6","block_type":"box","text":"Fiscal Year Ended May 31, 2025 .","page_number":33,"box":{"x":70,"y":631,"width":242,"height":11}},{"id":"08d79aa7-5500-494a-be10-07ab6d5f4ada","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . $ 89,075 $ 6,682 $ 6,682 $ 626","page_number":33,"box":{"x":319,"y":630,"width":574,"height":11}},{"id":"fcdc1435-0070-455d-91ec-9ea8e42a00df","block_type":"box","text":"Fiscal Year Ended May 31, 2024 .","page_number":33,"box":{"x":70,"y":646,"width":242,"height":11}},{"id":"98a4f97d-c4d4-4619-b586-e6b6a2a910b3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . $ 88,751 $ 6,993 $ 6,993 $1,460","page_number":33,"box":{"x":319,"y":645,"width":574,"height":11}},{"id":"83f7cc97-43e4-4963-94f9-2c23a4f822c2","block_type":"box","text":"Investor C Shares","page_number":33,"box":{"x":760,"y":675,"width":103,"height":7}},{"id":"41a0eada-057d-4828-8c1a-fab8a4a52194","block_type":"box","text":"CDSCs Received","page_number":33,"box":{"x":713,"y":691,"width":97,"height":7}},{"id":"89153fec-07f6-4101-b2e8-8830ebd029f9","block_type":"box","text":"by BRIL","page_number":33,"box":{"x":740,"y":701,"width":44,"height":9}},{"id":"64f7d685-a822-40e8-b05d-1d826d32c540","block_type":"box","text":"CDSCs Paid","page_number":33,"box":{"x":840,"y":691,"width":69,"height":7}},{"id":"88018f9b-013d-4112-ba67-5a68a3fed7de","block_type":"box","text":"to Affiliates","page_number":33,"box":{"x":841,"y":701,"width":68,"height":7}},{"id":"e132e8c9-b5df-4a6b-8144-cec886a656cb","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":70,"y":719,"width":474,"height":11}},{"id":"eee1d9f2-cc0a-4b0a-8372-5b682789f886","block_type":"box","text":". . . . . . . . . . . . . . . . . $1,210 $1,210","page_number":33,"box":{"x":550,"y":718,"width":351,"height":11}},{"id":"05f9ba29-5187-4a25-a611-6444b10a0a9d","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":70,"y":734,"width":474,"height":11}},{"id":"838ef379-c801-469a-b631-fd5277e89f70","block_type":"box","text":". . . . . . . . . . . . . . . . . $ 161 $ 161","page_number":33,"box":{"x":550,"y":733,"width":351,"height":11}},{"id":"39407f7a-8fac-4e38-a4b1-00fafdfb78f2","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":70,"y":749,"width":474,"height":11}},{"id":"f6a3871d-2992-4996-900e-ea6ed8918c2b","block_type":"box","text":". . . . . . . . . . . . . . . . . $ 76 $ 76","page_number":33,"box":{"x":550,"y":748,"width":351,"height":11}},{"id":"089f55d2-ecb0-434d-8aa1-6bbd3331435c","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":773,"width":805,"height":11}},{"id":"63f918b4-d7e6-44bc-821b-717f031cbde7","block_type":"box","text":"to BRIL under the Fund’s 12b-1 plan. A portion of the fees collected by BRIL were paid to affiliates for providing","page_number":33,"box":{"x":68,"y":788,"width":796,"height":11}},{"id":"6b9128d3-4cb1-4a54-a7e2-0dbfed6b162a","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":803,"width":826,"height":11}},{"id":"8fa5ea72-8b56-4850-a61f-91c342173633","block_type":"box","text":"activities and services for Investor C and Class R Shares.","page_number":33,"box":{"x":69,"y":818,"width":409,"height":9}},{"id":"d1df6342-aa01-4922-a754-435000776e0c","block_type":"box","text":"Class Name","page_number":33,"box":{"x":69,"y":847,"width":68,"height":7}},{"id":"07b7e242-dec9-4b07-b79d-0d1aaca6f22f","block_type":"box","text":"Fees Paid to BRIL","page_number":33,"box":{"x":806,"y":847,"width":103,"height":7}},{"id":"85df6197-631a-4de9-bf81-2389139d128e","block_type":"box","text":"Investor A Shares .","page_number":33,"box":{"x":70,"y":864,"width":134,"height":9}},{"id":"c8ec6179-8547-4464-8176-f196adf03902","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":33,"box":{"x":210,"y":864,"width":626,"height":11}},{"id":"0fc35dc1-bab9-4b65-a4ee-4c1c71d833f7","block_type":"box","text":"115,209","page_number":33,"box":{"x":839,"y":864,"width":62,"height":11}},{"id":"194e22ff-8ada-4a14-9c1f-32e60d261524","block_type":"box","text":"Investor C Shares . . .","page_number":33,"box":{"x":70,"y":879,"width":150,"height":9}},{"id":"6085d06f-e599-40bf-9c86-a3fbfd9c51bb","block_type":"box","text":".................................................................... $","page_number":33,"box":{"x":226,"y":879,"width":596,"height":10}},{"id":"3ad0fe1c-31db-40d9-80d2-391e6e795d12","block_type":"box","text":"194,051","page_number":33,"box":{"x":839,"y":879,"width":62,"height":11}},{"id":"6bde3a62-f610-4177-9d15-4912b7e076ac","block_type":"box","text":"Class R Shares","page_number":33,"box":{"x":69,"y":895,"width":109,"height":8}},{"id":"6895ca57-f483-47a5-a3b0-22083eb2b2a6","block_type":"box","text":"......................................................................... $","page_number":33,"box":{"x":185,"y":894,"width":637,"height":10}},{"id":"b40ae026-666b-4d6c-ba76-ed3f37964214","block_type":"box","text":"219,422","page_number":33,"box":{"x":839,"y":895,"width":61,"height":10}},{"id":"e74967ee-eb29-4bfb-a425-e6a3cd663f33","block_type":"box","text":"I-24","page_number":33,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"b3751eab-df75-4656-9f1d-f1938bededbe","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":33,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8f437e79-3146-4344-9557-ec137583e3ac","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":34,"box":{"x":68,"y":45,"width":318,"height":11}},{"id":"b132459f-7b5c-4c96-bd9e-27e082008d3f","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":34,"box":{"x":101,"y":67,"width":805,"height":12}},{"id":"87030b83-20f9-474e-b6a9-ed53c6c48bc8","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":34,"box":{"x":68,"y":82,"width":827,"height":12}},{"id":"50878071-23e7-48d4-9821-92f7a4baace9","block_type":"box","text":"forth below.","page_number":34,"box":{"x":68,"y":98,"width":83,"height":9}},{"id":"206d0a24-87f3-49fe-bd02-56c1cb628b4d","block_type":"box","text":"Investor A Shares","page_number":34,"box":{"x":805,"y":126,"width":102,"height":7}},{"id":"405e6e95-910b-45c2-9725-11fc49c75e2c","block_type":"box","text":"Net Assets","page_number":34,"box":{"x":70,"y":144,"width":76,"height":9}},{"id":"b919fc1d-52de-44a6-9389-fe961881d456","block_type":"box","text":".............................................................................","page_number":34,"box":{"x":150,"y":151,"width":621,"height":1}},{"id":"4d81bbd7-28ac-4b9b-8ec5-a7b4e3f1ba9f","block_type":"box","text":"$501,978,371","page_number":34,"box":{"x":803,"y":143,"width":106,"height":11}},{"id":"3b5d6d7e-b031-4bdd-a1d3-d10ff545b84b","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":34,"box":{"x":70,"y":159,"width":245,"height":11}},{"id":"dabf48a0-ab40-4b67-9481-630385b4d336","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,","page_number":34,"box":{"x":321,"y":159,"width":524,"height":10}},{"id":"41323f60-7aea-4172-9ebb-81fd07b43f3c","block_type":"box","text":"107,061","page_number":34,"box":{"x":847,"y":159,"width":62,"height":10}},{"id":"c4b487c2-3558-4fc8-8228-de1745648bac","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":34,"box":{"x":70,"y":174,"width":571,"height":11}},{"id":"dc7b2430-eb86-4e0b-bdb2-69cf73896bf5","block_type":"box","text":"................","page_number":34,"box":{"x":647,"y":181,"width":124,"height":2}},{"id":"4b8a5474-49a1-4f2d-b4c5-aeaa3b4c6ec5","block_type":"box","text":"$24.97","page_number":34,"box":{"x":857,"y":173,"width":51,"height":11}},{"id":"b9f567e0-b8ff-4f83-a813-656e30959894","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":34,"box":{"x":69,"y":189,"width":534,"height":11}},{"id":"38083c8e-4213-411e-ad7d-c22d6194a972","block_type":"box","text":"1","page_number":34,"box":{"x":604,"y":189,"width":4,"height":5}},{"id":"bf505da8-f115-4893-ac47-a4ed44ca975e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . 1.38","page_number":34,"box":{"x":615,"y":189,"width":294,"height":9}},{"id":"0f491c2f-66de-47ef-b6d4-9addc7104b79","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":34,"box":{"x":69,"y":208,"width":702,"height":12}},{"id":"4bea0532-bd37-4320-92e0-50463cd4d00f","block_type":"box","text":"$26.35","page_number":34,"box":{"x":857,"y":208,"width":52,"height":10}},{"id":"017bf6bb-98fc-4df7-a103-de82044efb58","block_type":"box","text":"1","page_number":34,"box":{"x":69,"y":241,"width":3,"height":3}},{"id":"1761dfc4-59fe-43ab-a308-62f619cec336","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":34,"box":{"x":94,"y":241,"width":541,"height":8}},{"id":"002e6cef-230d-4087-8e09-fc6e806b7980","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’s net asset value computed as","page_number":34,"box":{"x":101,"y":261,"width":796,"height":12}},{"id":"2817f5ff-07aa-4126-ae2c-1d10e69f63c8","block_type":"box","text":"set forth above for Investor A Shares. Though not subject to a sales charge, certain share classes may be subject to","page_number":34,"box":{"x":69,"y":276,"width":833,"height":12}},{"id":"71842a77-9436-497e-82e1-7610cd7f3b28","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":34,"box":{"x":69,"y":292,"width":813,"height":11}},{"id":"14ada573-31af-440a-b579-333fc9c461ef","block_type":"box","text":"Shares” and “Pricing of Shares” in Part II of this SAI.","page_number":34,"box":{"x":69,"y":307,"width":377,"height":11}},{"id":"1c0fbc18-063e-49b8-b43d-7d47a000aae8","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":34,"box":{"x":68,"y":337,"width":302,"height":11}},{"id":"58c197c6-fa55-42fc-954c-3c58955048c2","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in Part II of this SAI for more information.","page_number":34,"box":{"x":102,"y":360,"width":609,"height":11}},{"id":"3ad12dce-d6d0-47a9-9b5a-945457916300","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, is set","page_number":34,"box":{"x":102,"y":382,"width":794,"height":12}},{"id":"8a4774f1-f4df-48ce-80c4-be0518beb01a","block_type":"box","text":"forth in the following table:","page_number":34,"box":{"x":68,"y":397,"width":191,"height":12}},{"id":"bc49bac1-bae9-4093-860c-ba9b2433fa80","block_type":"box","text":"Aggregate Brokerage","page_number":34,"box":{"x":613,"y":426,"width":125,"height":9}},{"id":"e7364cbe-5a90-44e1-86ac-771b5fb0c5ed","block_type":"box","text":"Commissions Paid","page_number":34,"box":{"x":623,"y":436,"width":106,"height":7}},{"id":"b7a88c59-55f7-474a-8c05-ea87d125ef1d","block_type":"box","text":"Brokerage Commissions","page_number":34,"box":{"x":769,"y":426,"width":140,"height":9}},{"id":"218c92e4-05b3-48da-81da-3f61f0ab871f","block_type":"box","text":"Paid to Affiliates","page_number":34,"box":{"x":791,"y":436,"width":96,"height":7}},{"id":"306bfd3d-c9a9-433e-af01-30ce7bd12c48","block_type":"box","text":"Fiscal Year Ended May 31, 2026","page_number":34,"box":{"x":70,"y":454,"width":230,"height":11}},{"id":"f02da5d8-47d4-4152-9624-e17656d97944","block_type":"box","text":"1","page_number":34,"box":{"x":301,"y":454,"width":4,"height":4}},{"id":"917f1691-327e-4f87-afb9-e1d8fb76608c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,","page_number":34,"box":{"x":311,"y":453,"width":344,"height":11}},{"id":"512dd00d-ed40-4b4a-ab6d-4ec7470e388a","block_type":"box","text":"203,049 $0","page_number":34,"box":{"x":657,"y":453,"width":191,"height":11}},{"id":"f59dcc1a-dc4a-4f5b-8f98-5d7e96b4d831","block_type":"box","text":"Fiscal Year Ended May 31, 2025","page_number":34,"box":{"x":70,"y":469,"width":230,"height":11}},{"id":"d0338730-c947-4aa0-85c2-3fa7db2dfc96","block_type":"box","text":"1","page_number":34,"box":{"x":301,"y":469,"width":4,"height":4}},{"id":"49d974a9-4465-4800-9b8d-8c6f404ecd26","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":34,"box":{"x":311,"y":468,"width":344,"height":11}},{"id":"e45cd43b-e739-4ce5-83be-7e20aee438d1","block_type":"box","text":"847,371 $0","page_number":34,"box":{"x":657,"y":468,"width":191,"height":11}},{"id":"17d8ad74-b0cf-49c4-8dad-8bbf7016701b","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . .","page_number":34,"box":{"x":70,"y":484,"width":292,"height":11}},{"id":"d408f554-0e30-4a8b-b918-34a1b10cf2f5","block_type":"box","text":"........................... $","page_number":34,"box":{"x":369,"y":483,"width":272,"height":11}},{"id":"6962114c-c985-45bd-b1de-ee24e3e95bcd","block_type":"box","text":"805,360 $0","page_number":34,"box":{"x":657,"y":483,"width":191,"height":11}},{"id":"f94dcff2-03f7-4a13-978b-80f99c3e225d","block_type":"box","text":"1","page_number":34,"box":{"x":69,"y":508,"width":3,"height":4}},{"id":"672cf778-7108-442b-9eee-4ffd48883dc3","block_type":"box","text":"The increase in brokerage commissions paid by the Fund as compared to the prior fiscal year was primarily due to an increase in Fund assets","page_number":34,"box":{"x":93,"y":508,"width":808,"height":9}},{"id":"b2561f95-8fe3-41c7-a934-79d47ac5f47f","block_type":"box","text":"under management.","page_number":34,"box":{"x":94,"y":518,"width":112,"height":9}},{"id":"692ab287-15e9-4a80-99a8-aeade7112372","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":34,"box":{"x":101,"y":539,"width":770,"height":11}},{"id":"23d186f2-f723-40cd-8188-ffc5f70066be","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":34,"box":{"x":69,"y":554,"width":814,"height":12}},{"id":"1a15311b-1790-4bec-9843-5bd7bcc3a617","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":34,"box":{"x":68,"y":569,"width":829,"height":12}},{"id":"4ba1180e-e642-4389-ad59-559c54b6f835","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":584,"width":822,"height":12}},{"id":"efb7aea6-0a8a-47e6-9027-c9178094a299","block_type":"box","text":"with such brokers.","page_number":34,"box":{"x":68,"y":600,"width":130,"height":9}},{"id":"0b8c3592-8f34-47d4-8673-ae250ae00e8b","block_type":"box","text":"Amount of Commissions","page_number":34,"box":{"x":355,"y":628,"width":141,"height":7}},{"id":"22a8aeee-3797-48d3-80f5-cb9db301f856","block_type":"box","text":"Paid to Brokers for","page_number":34,"box":{"x":371,"y":638,"width":110,"height":7}},{"id":"7f3684f7-6118-4bb3-813e-99d15b832793","block_type":"box","text":"Providing 28(e) Eligible","page_number":34,"box":{"x":358,"y":648,"width":136,"height":9}},{"id":"bbd35bc8-7844-442f-b2bf-91f1c5d53784","block_type":"box","text":"Research Services","page_number":34,"box":{"x":372,"y":658,"width":108,"height":7}},{"id":"32815f4f-02bf-4e37-8941-659204c2236e","block_type":"box","text":"Amount of Brokerage","page_number":34,"box":{"x":588,"y":648,"width":124,"height":9}},{"id":"a5758bc4-8845-4314-8b1c-b36874853a52","block_type":"box","text":"Transactions Involved","page_number":34,"box":{"x":587,"y":658,"width":126,"height":7}},{"id":"e28a0341-ed39-4a39-ab5b-f418e73dbcbc","block_type":"box","text":"$1,170,463 $3,897,286,044","page_number":34,"box":{"x":382,"y":675,"width":329,"height":11}},{"id":"7ece57cd-2d2d-4e45-af1f-8cb4ce06a980","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":700,"width":796,"height":11}},{"id":"f298816e-d071-4cb2-bac1-d3ad8acc8538","block_type":"box","text":"10b-1 under the Investment Company Act) or their parents as of May 31, 2026 if any portion of such holdings were","page_number":34,"box":{"x":70,"y":715,"width":821,"height":11}},{"id":"1b04c210-8140-43dc-a3ba-f30f229d7f9c","block_type":"box","text":"purchased during the fiscal year ended May 31, 2026, is as follows:","page_number":34,"box":{"x":70,"y":730,"width":485,"height":11}},{"id":"b73c0a0d-2518-4bab-a41d-339bc29c352e","block_type":"box","text":"Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000’s)","page_number":34,"box":{"x":69,"y":758,"width":840,"height":9}},{"id":"da1b47fb-63ae-4b20-9a68-a3c1319028fc","block_type":"box","text":"Barclays Capital, Inc.","page_number":34,"box":{"x":70,"y":776,"width":147,"height":11}},{"id":"2bad4cf4-3888-41b0-92bc-f66853091d49","block_type":"box","text":"........................................... E","page_number":34,"box":{"x":227,"y":776,"width":437,"height":9}},{"id":"c3a2a95c-969f-4f40-8a30-4b84f495a6ee","block_type":"box","text":"$94,749","page_number":34,"box":{"x":797,"y":775,"width":62,"height":11}},{"id":"62a1af8b-ab49-4791-a225-f45737090d99","block_type":"box","text":"BNP Paribas Securities Corp. .","page_number":34,"box":{"x":70,"y":791,"width":216,"height":11}},{"id":"697b9b35-e669-451e-a3dc-faf1d06526f0","block_type":"box","text":"................................... E","page_number":34,"box":{"x":292,"y":791,"width":372,"height":9}},{"id":"bbeeb61b-ccf8-4fea-9521-883ddcf0bba7","block_type":"box","text":"$84,492","page_number":34,"box":{"x":797,"y":790,"width":62,"height":12}},{"id":"77787b5d-7a10-4e36-83de-5d9c7c401747","block_type":"box","text":"UBS Securities LLC","page_number":34,"box":{"x":70,"y":806,"width":135,"height":9}},{"id":"fa947d3e-1315-494f-a611-879745f67462","block_type":"box","text":"............................................. E","page_number":34,"box":{"x":210,"y":806,"width":454,"height":9}},{"id":"1c523ab3-e6ae-45ed-addc-56468653f21a","block_type":"box","text":"$80,103","page_number":34,"box":{"x":797,"y":806,"width":62,"height":11}},{"id":"2d59d271-5f28-438c-8da9-b504d2e5f426","block_type":"box","text":"Securities Lending","page_number":34,"box":{"x":68,"y":838,"width":135,"height":11}},{"id":"07d38888-4200-4c33-90b3-176bb6fa8c9c","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":861,"width":807,"height":11}},{"id":"33ce78ab-9f37-43bf-9658-46ec0e091f7d","block_type":"box","text":"exemptive order from the Commission permitting it to lend portfolio securities to borrowers affiliated with the Fund","page_number":34,"box":{"x":69,"y":875,"width":817,"height":12}},{"id":"6f5d6093-cbdb-4a84-ad42-fef611f5d3ea","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":891,"width":813,"height":11}},{"id":"79239a0f-44a7-49bd-8f10-1d8db99f01d6","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":906,"width":838,"height":11}},{"id":"241161e7-4d31-4e37-82ba-dac4172c4304","block_type":"box","text":"I-25","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"143b3a79-887c-432d-8cf0-aaefa2e396ae","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":34,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f48109e4-c816-453a-b3a7-341f31d8133d","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":35,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"3e198297-e9b2-4812-924b-f98fc4c6b901","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":35,"box":{"x":70,"y":60,"width":646,"height":11}},{"id":"92e3c90d-00d4-4898-af17-47b17636f8b0","block_type":"box","text":"The Fund retains a portion of the securities lending income and remits the remaining portion to BIM as","page_number":35,"box":{"x":101,"y":82,"width":735,"height":12}},{"id":"d64b1992-0461-496d-a46b-07497e1f6d5b","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":35,"box":{"x":69,"y":98,"width":834,"height":11}},{"id":"844b21e2-7252-4c15-969d-90eb4e09230a","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":35,"box":{"x":70,"y":113,"width":822,"height":11}},{"id":"b580520f-477a-4081-84fc-17925cb49b64","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":35,"box":{"x":69,"y":128,"width":787,"height":11}},{"id":"4f9d86e1-b08f-4561-a06d-4244fea42853","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":35,"box":{"x":69,"y":143,"width":783,"height":11}},{"id":"dea5286c-23ac-4a35-a874-20f2b92f4d67","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the","page_number":35,"box":{"x":70,"y":158,"width":800,"height":11}},{"id":"945f06b9-9548-477e-8209-c07bc6675b02","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":35,"box":{"x":70,"y":173,"width":813,"height":11}},{"id":"7735b45b-0963-47ec-a2e3-575c7a2e5dff","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":35,"box":{"x":70,"y":188,"width":830,"height":12}},{"id":"e89b7a0d-66d4-4c40-97dd-2f80a66dcaf0","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":35,"box":{"x":69,"y":203,"width":773,"height":12}},{"id":"1c62f2d1-af0a-480d-b60d-6bf95b1f12e6","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":35,"box":{"x":101,"y":226,"width":776,"height":11}},{"id":"ad24f9c0-b4d2-4bfc-87f5-1e6d0432fd25","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":35,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"db13c6c5-b957-462f-9bb0-67179d90cddb","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":35,"box":{"x":68,"y":256,"width":812,"height":12}},{"id":"f4f46ae9-f4ac-4a04-8fa1-7dc52b9100dd","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":35,"box":{"x":69,"y":271,"width":799,"height":12}},{"id":"98897358-c4c4-45a3-8de3-041115aad935","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":35,"box":{"x":68,"y":286,"width":835,"height":12}},{"id":"edf52f06-b531-464f-8043-3aa24749b827","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":35,"box":{"x":69,"y":302,"width":818,"height":11}},{"id":"4b46e74b-8d52-421d-9b4f-0063e95e52b3","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":35,"box":{"x":68,"y":317,"width":789,"height":11}},{"id":"5a9613a6-1713-4e82-b279-9e24a8a839ee","block_type":"box","text":"making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount","page_number":35,"box":{"x":69,"y":332,"width":829,"height":11}},{"id":"27ec2fcd-35b2-428d-b451-9316d5e61d5d","block_type":"box","text":"of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":35,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"f620dec7-1a0c-4ff8-bab3-e16a07c730a3","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":35,"box":{"x":69,"y":362,"width":802,"height":11}},{"id":"782b9d96-93e1-4d99-a8fc-8c97a3a10cfb","block_type":"box","text":"portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value","page_number":35,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"4cd8dc64-7d2e-44b2-b52f-482e02eafb1a","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":35,"box":{"x":69,"y":392,"width":838,"height":12}},{"id":"0253b842-153e-4ba2-bff4-8b6547bfdb99","block_type":"box","text":"Fund’s returns on securities lending.","page_number":35,"box":{"x":70,"y":408,"width":258,"height":11}},{"id":"30efdd4b-ac5c-41dd-881f-900a29f04ee0","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":35,"box":{"x":102,"y":430,"width":774,"height":11}},{"id":"d3884c7f-0b53-44a2-8ebe-0897355673ab","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity or fund of","page_number":35,"box":{"x":69,"y":445,"width":790,"height":12}},{"id":"6fa3a7db-974d-4c2e-bca8-f9600dd37b75","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":35,"box":{"x":68,"y":460,"width":809,"height":12}},{"id":"4a58cd75-8641-49d9-bd68-5359e4cd1922","block_type":"box","text":"Fund and BIM.","page_number":35,"box":{"x":70,"y":476,"width":100,"height":8}},{"id":"1ac528e8-885f-46c0-bc58-c6ef27c10c68","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 82% of securities","page_number":35,"box":{"x":102,"y":498,"width":783,"height":11}},{"id":"a18c8bc6-fcca-41c6-ae27-28d0f29315b6","block_type":"box","text":"lending income (which excludes collateral investment expenses); and (ii) this amount can never be less than 70% of","page_number":35,"box":{"x":70,"y":513,"width":826,"height":12}},{"id":"92bbf4f3-3e04-4456-a2fa-6135857c0dea","block_type":"box","text":"the sum of securities lending income plus collateral investment expenses.","page_number":35,"box":{"x":68,"y":528,"width":529,"height":12}},{"id":"f8a35552-c9f1-4d30-b766-4ba7dea11315","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":35,"box":{"x":102,"y":551,"width":753,"height":11}},{"id":"1fe481f8-42cb-4fe7-b3a7-c800346673fc","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":35,"box":{"x":69,"y":566,"width":778,"height":11}},{"id":"d51fcbcd-c40e-4f98-a618-4d7befede8b9","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":35,"box":{"x":70,"y":581,"width":817,"height":12}},{"id":"6a5afa44-51b4-4406-8430-228baae10a6a","block_type":"box","text":"lending income as follows: (i) 85% of securities lending income (which excludes collateral investment expenses); and","page_number":35,"box":{"x":70,"y":596,"width":831,"height":12}},{"id":"0d8327b7-3f74-4c6f-ba1c-8411aba38594","block_type":"box","text":"(ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment","page_number":35,"box":{"x":69,"y":612,"width":786,"height":11}},{"id":"c67dba30-e714-4b2b-b0ee-4f1756282754","block_type":"box","text":"expenses.","page_number":35,"box":{"x":69,"y":629,"width":71,"height":9}},{"id":"b887bf31-e3d3-44a4-b33b-ec161d764cfe","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":649,"width":683,"height":12}},{"id":"1f3b53d1-fcb8-4ec4-bf39-10b1ac0fa538","block_type":"box","text":"The services provided to the Fund by BIM, in the fiscal year ended May 31, 2026, primarily included the","page_number":35,"box":{"x":101,"y":672,"width":740,"height":11}},{"id":"fa740c44-52da-48a8-ac32-f00a2c020d63","block_type":"box","text":"following:","page_number":35,"box":{"x":68,"y":687,"width":66,"height":11}},{"id":"6053bb2d-841b-450d-8a3a-85a47d7faca5","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":707,"width":818,"height":12}},{"id":"e9829cba-75c9-4440-b476-65d7432a4d54","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":35,"box":{"x":102,"y":722,"width":333,"height":11}},{"id":"8df4a998-ecd7-4039-9ecb-5fbde9589e9f","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":35,"box":{"x":69,"y":743,"width":538,"height":11}},{"id":"fad36210-b125-437f-982e-787ba22fd2f9","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":35,"box":{"x":69,"y":763,"width":330,"height":11}},{"id":"ef59d0ca-53fa-40cc-a118-0fac697bca33","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":783,"width":834,"height":11}},{"id":"4d33f29e-3092-4bd6-bf0b-b144fe4674d8","block_type":"box","text":"of excess collateral, as necessary;","page_number":35,"box":{"x":102,"y":798,"width":246,"height":11}},{"id":"50682d85-a8f4-4587-b31d-81beeba56398","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":35,"box":{"x":69,"y":818,"width":562,"height":11}},{"id":"8ebd6965-4165-43c4-b63c-8239ad0b38bb","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":35,"box":{"x":69,"y":838,"width":665,"height":12}},{"id":"0434a78f-6e66-4a79-b877-13ddbc3a135e","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":858,"width":822,"height":12}},{"id":"ded0fdac-9b1d-4ebf-bc3c-652f8b724376","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":874,"width":803,"height":11}},{"id":"b0984695-e033-444f-8382-5181665da4c6","block_type":"box","text":"of the loaned securities; and","page_number":35,"box":{"x":102,"y":889,"width":203,"height":10}},{"id":"9a0f0be4-f84a-4f51-bb8e-7e361962760d","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":909,"width":808,"height":11}},{"id":"635d1ee5-27f0-4c76-9b25-fdeda81203d2","block_type":"box","text":"I-26","page_number":35,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"0213a586-4e32-4ffb-abe1-3a968d75d92c","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":35,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"04f904f3-2154-41c1-b524-c6208876cf3b","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":36,"box":{"x":101,"y":45,"width":805,"height":11}},{"id":"84027dd1-080a-4a7d-a3df-a79232638c24","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended May 31, 2026.","page_number":36,"box":{"x":69,"y":60,"width":546,"height":11}},{"id":"d6024051-89ef-4f8d-8b08-85aef8ed7036","block_type":"box","text":"Gross income from securities lending activities","page_number":36,"box":{"x":69,"y":88,"width":343,"height":11}},{"id":"e0df245e-2962-4827-8965-bb15923d6469","block_type":"box","text":"...................................................","page_number":36,"box":{"x":416,"y":95,"width":409,"height":1}},{"id":"00cfe526-8ceb-458b-bae6-9dbf64994fe7","block_type":"box","text":"$32,883","page_number":36,"box":{"x":847,"y":87,"width":62,"height":11}},{"id":"8bc449c1-e9ee-4bcc-bc30-4f241fac2ce2","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":36,"box":{"x":70,"y":107,"width":565,"height":11}},{"id":"c11315f2-4bdb-4d68-a76b-e955d3cec371","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":36,"box":{"x":79,"y":122,"width":599,"height":11}},{"id":"0cf64bfe-0205-45dd-8ba9-102cd67a590f","block_type":"box","text":". . . . . . . . . . . . . . . . . . $ 981","page_number":36,"box":{"x":685,"y":121,"width":224,"height":11}},{"id":"b113c40f-fba0-489e-b722-ff88949420ac","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM. .","page_number":36,"box":{"x":79,"y":137,"width":673,"height":12}},{"id":"a416f6ad-8972-415a-8f3f-a45506bf349c","block_type":"box","text":". . . . . . . . . $ 320","page_number":36,"box":{"x":758,"y":137,"width":151,"height":10}},{"id":"089bcf5c-9560-44cc-b2ec-3d48ceee04b2","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":36,"box":{"x":78,"y":152,"width":551,"height":12}},{"id":"70f2f0ad-a661-4f7e-aaa4-f3ed0a0cccc7","block_type":"box","text":"........................ $ 0","page_number":36,"box":{"x":636,"y":152,"width":273,"height":10}},{"id":"7e3ba447-d97e-45dd-a613-2e74b805a1f3","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":36,"box":{"x":79,"y":167,"width":567,"height":12}},{"id":"95c87a45-75b4-453d-bcf4-ac57abdbb31f","block_type":"box","text":"...................... $ 0","page_number":36,"box":{"x":652,"y":167,"width":257,"height":10}},{"id":"b96200d0-87cf-4d18-b920-2af6dbf2c177","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . .","page_number":36,"box":{"x":79,"y":183,"width":289,"height":11}},{"id":"06edb64a-4ffc-4680-8ed3-3c05e93bab16","block_type":"box","text":"........................................................","page_number":36,"box":{"x":375,"y":190,"width":450,"height":1}},{"id":"6dea5881-c812-4dec-a86b-74a1b45467af","block_type":"box","text":"$31,582","page_number":36,"box":{"x":847,"y":182,"width":62,"height":11}},{"id":"581639f0-afa9-49ff-9603-8f71d66215f2","block_type":"box","text":"Other fees not included in securities lending income paid to BIM. . . . . . . . . . .","page_number":36,"box":{"x":79,"y":198,"width":542,"height":11}},{"id":"e5e3d640-6801-4d2e-bf80-e3d3e7911f27","block_type":"box","text":"......................... $ 0","page_number":36,"box":{"x":628,"y":197,"width":281,"height":11}},{"id":"4ec7d1ee-32c8-4947-8989-2085156a6da9","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":36,"box":{"x":68,"y":213,"width":455,"height":11}},{"id":"3fedd04e-ea01-4548-b738-d5bdf2210197","block_type":"box","text":".....................................","page_number":36,"box":{"x":530,"y":220,"width":295,"height":2}},{"id":"1dbc88a9-7ab1-468b-ac5f-aa2c5d7dc005","block_type":"box","text":"$32,883","page_number":36,"box":{"x":847,"y":212,"width":62,"height":12}},{"id":"768a9b6b-9779-49bd-a553-bdbb2d90e986","block_type":"box","text":"Net income from securities lending activities","page_number":36,"box":{"x":69,"y":232,"width":327,"height":11}},{"id":"a16401c6-a14f-4d87-835c-cab6dc748723","block_type":"box","text":".....................................................","page_number":36,"box":{"x":399,"y":240,"width":426,"height":1}},{"id":"e45552bb-b5a5-4f4f-a5b4-25b08e5aca09","block_type":"box","text":"$-","page_number":36,"box":{"x":847,"y":232,"width":62,"height":10}},{"id":"5072d16e-2be6-4ab2-b785-d481df280464","block_type":"box","text":"VIII. Additional Information","page_number":36,"box":{"x":68,"y":268,"width":195,"height":9}},{"id":"6fd730cf-56cf-42b1-8d85-57d2194d04e6","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":36,"box":{"x":102,"y":291,"width":352,"height":11}},{"id":"7e75fbaa-47b2-4609-8932-e7f7c92ada02","block_type":"box","text":"Deloitte & Touche LLP, with offices located at 115 Federal","page_number":36,"box":{"x":461,"y":291,"width":412,"height":10}},{"id":"fa1d94a1-ae2b-4187-8a9a-4456f8a80d29","block_type":"box","text":"Street, Boston, Massachusetts 02110, serves as the Fund’s independent registered public accounting firm.","page_number":36,"box":{"x":69,"y":306,"width":772,"height":11}},{"id":"79915a88-76c6-4ef9-b236-d159a5ca80bb","block_type":"box","text":"Counsel.","page_number":36,"box":{"x":101,"y":329,"width":62,"height":9}},{"id":"239b380c-a6f3-4feb-8099-400e8741f2ca","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":36,"box":{"x":170,"y":329,"width":736,"height":11}},{"id":"1577cfe6-1f65-4994-99c7-7e6f3003e29b","block_type":"box","text":"the Fund’s counsel.","page_number":36,"box":{"x":68,"y":344,"width":139,"height":9}},{"id":"7c19f5e3-58be-43f5-a7ad-9a25b27121bf","block_type":"box","text":"The Trust","page_number":36,"box":{"x":70,"y":374,"width":66,"height":9}},{"id":"500b4a11-a00d-4f7f-8373-94fce8ae0765","block_type":"box","text":"The Trust was organized as a Massachusetts business trust on December 22, 1988, and is registered under the","page_number":36,"box":{"x":101,"y":397,"width":807,"height":11}},{"id":"bf9521d1-ec0d-43b1-bdfd-8c877f90d4a4","block_type":"box","text":"Investment Company Act as an open-end management investment company. The Fund is diversified. The Trust is","page_number":36,"box":{"x":70,"y":412,"width":800,"height":11}},{"id":"aa0726fe-2876-461b-8474-3e08f1d6d8b6","block_type":"box","text":"authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per share, which","page_number":36,"box":{"x":69,"y":426,"width":827,"height":12}},{"id":"190a75a8-984d-43d9-803a-64f9d57103b0","block_type":"box","text":"may be divided into different series and classes. Effective on June 23, 2015, all of the issued and outstanding","page_number":36,"box":{"x":69,"y":442,"width":793,"height":11}},{"id":"02a0d260-bf58-412f-965a-a3db27409134","block_type":"box","text":"Investor B Shares of the Fund were converted into Investor A Shares.","page_number":36,"box":{"x":70,"y":457,"width":491,"height":9}},{"id":"eecf2d69-7a4b-477f-906e-068327ca8e15","block_type":"box","text":"Under Massachusetts law, shareholders of a business trust may, under certain circumstances, be held","page_number":36,"box":{"x":102,"y":480,"width":734,"height":11}},{"id":"3fc95ca9-ed3c-4e9b-b107-792cc9c11794","block_type":"box","text":"personally liable as partners for the obligations of the Trust. However, the Trust’s Declaration of Trust provides that","page_number":36,"box":{"x":70,"y":495,"width":822,"height":11}},{"id":"2a8efacc-6cb6-4bc9-8f3e-e7ccdd961f0a","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":36,"box":{"x":69,"y":510,"width":814,"height":11}},{"id":"d5da424e-34fd-462b-bfa8-289e015fd751","block_type":"box","text":"obligations of the Trust, and that every note, bond, contract, order or other undertaking made by the Trust shall","page_number":36,"box":{"x":69,"y":525,"width":794,"height":12}},{"id":"b17ecd8f-b6b1-45da-85f8-48b9584ccae8","block_type":"box","text":"contain a provision to the effect that the shareholders are not personally liable thereunder. The Declaration of Trust","page_number":36,"box":{"x":69,"y":540,"width":824,"height":12}},{"id":"649e9b4f-fe54-4ac8-a5e8-e21340723938","block_type":"box","text":"provides for indemnification out of property of any shareholder held personally liable solely by reason of his being or","page_number":36,"box":{"x":70,"y":555,"width":827,"height":12}},{"id":"29001885-70ce-4ca0-9e9c-7aa58939f65a","block_type":"box","text":"having been a shareholder and not because of such shareholder’s acts or omissions or some other reason. 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Additional copies of the Fund’s annual and semi-annual reports to","page_number":38,"box":{"x":69,"y":355,"width":815,"height":11}},{"id":"4d36727c-853d-4d07-8767-1d54a9f5e345","block_type":"box","text":"shareholders and the Fund’s Annual and Semi-Annual Financial Statements and Additional Information may be","page_number":38,"box":{"x":69,"y":370,"width":785,"height":11}},{"id":"7088a86d-704f-4aaf-8572-3143cf327a55","block_type":"box","text":"obtained at no charge by telephoning the Distributor at the telephone number appearing on the front page of this SAI.","page_number":38,"box":{"x":69,"y":385,"width":836,"height":12}},{"id":"c5c11d86-7d29-4c2e-80f1-7e0e2e6a14c4","block_type":"box","text":"I-29","page_number":38,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"4e7b8484-1921-4604-8a44-9120460dd1ce","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"342d0dee-c77e-426f-9e89-05dfddfbf2f1","block_type":"box","text":"PART II","page_number":39,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"9bf0a47d-e8cd-4699-a29b-d472ccbaa518","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":39,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"f82053c8-9c55-414e-bf49-434ba03ac624","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Certain Funds may also be referred to as “Municipal Funds” if","page_number":39,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"f910a98c-ec1c-4a63-9980-7142fb724612","block_type":"box","text":"they invest certain of their assets in municipal investments described below.","page_number":39,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"5aee1bd2-d5e3-4f7f-b826-aabe86c18538","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":39,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"bf9e7c52-e459-49ff-8a24-acbc8cd86b05","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":39,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"cbe7f547-1d67-415e-b219-5a1aa99ff121","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":39,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"36d553fc-49e7-4c34-b418-197fad156039","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":39,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"25183f9e-ce9a-4532-91be-e3d2d446de19","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":39,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"015fee85-ade2-4084-8dd2-e217ddb4ba77","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":39,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"c870139e-f4a7-4c92-976c-dde614521165","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":39,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"b5f300a8-9308-4d2c-9585-619ef7ac283f","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":39,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"9d966f91-b034-4cb9-9aec-b5736c71014b","block_type":"box","text":"Articles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “charter.”","page_number":39,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"ec2a3a47-df15-4ed5-8d43-bbb65df5065e","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":39,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"fb522973-4100-40b8-97fc-034a8841fa20","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":39,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"0f7ee665-fa5a-49ee-85ba-a07e5fbade96","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":39,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"09431ac0-e353-4ebb-a910-669f9543fb74","block_type":"box","text":"Certain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a portion of their assets in a","page_number":39,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"c1b0d237-661d-4875-9f37-e5dd2216d907","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each, a “Master","page_number":39,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"cfe9a929-d235-4d46-9e52-193286e4992f","block_type":"box","text":"LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. All investments are generally","page_number":39,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"7ff5dfd2-cb2f-4294-8799-442b8e8f1501","block_type":"box","text":"made at the level of the Master Portfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":39,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"c5edbbe2-a5ec-457d-b6ca-840e6aa39dec","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Portfolio in","page_number":39,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"6b35737d-21bf-4c57-a2e3-28bedd4a8228","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Portfolio.","page_number":39,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"b0900ca5-9391-40f3-8aa4-f21483eab307","block_type":"box","text":"In addition to containing information about the Funds, Part II of this SAI contains general information about all","page_number":39,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"12915972-29be-4a7b-ac33-59b3ba0c1e1e","block_type":"box","text":"funds in the BlackRock-advised fund complex. Certain information contained herein may not be relevant to a","page_number":39,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"694268c4-e6a7-42e6-b645-149f26522226","block_type":"box","text":"particular Fund.","page_number":39,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"4bd74d7a-c710-426a-aaab-07c0902c562c","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":39,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"be092b24-0f18-417c-a363-7e465aded5d0","block_type":"box","text":"Set forth below are descriptions of some of the types of investments and investment strategies that one or more","page_number":39,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"5e6d5a96-c000-47d3-9ea7-c88840b1d82f","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":39,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"e1bd1e3e-827b-439b-b45d-447c6ca8e684","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":39,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"735a8ed9-dddc-4f72-86b2-44501012d6cc","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Part","page_number":39,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"060f7ce1-8601-46ca-bd97-8d512454227a","block_type":"box","text":"I of this SAI for further information on each Fund’s investment policies and risks. Information contained in this","page_number":39,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"231cc2b2-a803-4d36-b574-6f5c20a20d7d","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":39,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"9e3cb2b9-1fc1-4308-9c1b-319c4df1662b","block_type":"box","text":"applies only to those Funds specifically identified in Part I of this SAI as making each type of investment or using","page_number":39,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"7258470c-7215-4f59-9805-70a17ed0424c","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":39,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"2be9dd6f-2a3d-4b78-8bf9-f74300237db6","block_type":"box","text":"a part of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":39,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"a77c2e90-bfa6-4e35-b789-f52633e0eb60","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a part of that Covered Fund’s SAI.","page_number":39,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"70d0a15f-061d-46af-8b8c-0a0d4b1c9ee2","block_type":"box","text":"Asset-Backed Securities.","page_number":39,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"9ddfca0e-2ae6-49e4-ae13-d453e75fd0d6","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":39,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"f0ed8721-c3aa-4b8a-abf5-9c37344e6d96","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":39,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"e01a77f8-a1d3-47d0-a7c0-c394897d5449","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":39,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"09d815c7-cf24-4829-b292-d78b221f5b11","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":39,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"9c84101a-a155-4865-9de3-091e201394b5","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":39,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"bda7e2e2-61cf-425d-ae47-57f5ae2d1ddc","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":39,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"48690aa4-64a3-483f-af72-0310dd85c267","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":39,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"d8bc006c-d985-46ba-a215-2a010bed8f1a","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":39,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"fbf31d01-bfe4-4872-bcba-fab02103cf05","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":39,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"7a404ec2-a01e-4e74-a60f-4811107b4195","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":39,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"915b78cf-3fcd-4719-9532-89d24850981f","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":39,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"615c3c23-5608-4f0e-a423-452265238430","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":39,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"ca7c25e1-1f7e-4c24-8f5b-f3b5afc94082","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":39,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"9ff09ca9-27f8-4ff7-9716-cca40e233426","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":39,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"24730128-c1fe-4bfb-ab61-dd7d1d18c86f","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":39,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"8fcd803e-ebee-4502-af6a-7f1d40eea0c1","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":39,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"37db53dd-0670-4cdd-80c8-2ce6ff5ae926","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This particular risk may effectively","page_number":39,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"c846fcaa-a698-4ddf-bc27-f377009b8db1","block_type":"box","text":"change a security that was considered short- or intermediate-term at the time of purchase into a longer term security.","page_number":39,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"510cdffb-f594-443d-be84-16850d47fdd4","block_type":"box","text":"II-1","page_number":39,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"a054ffc4-2e02-4e55-bb86-2e6a136a2a0c","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bfd9947a-baf1-4b3f-826d-b7c4e3babe6a","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":40,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"e0ebeae2-2a67-449a-8796-297f37241731","block_type":"box","text":"than does the value of shorter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":40,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"1e1d0754-0901-45a2-a0c9-e63e298cef23","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":40,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"af770a4f-906f-4794-91af-be3bf2642577","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":40,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"f1c9cda7-18e2-4c34-87bf-1282e74a7367","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":40,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"afe85e70-73c9-441d-b7ec-d2e964d472d6","block_type":"box","text":"Asset-Based Securities.","page_number":40,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"14800ec2-4d4c-4ab0-9510-9aead16d489f","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the principal","page_number":40,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"42f09ec1-1047-4c3e-af52-295e2f11448c","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":40,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"1bcaae51-aad2-4309-be23-73e2adc68839","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":40,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"257fe479-e19e-47d9-b52f-8848d0731a90","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":40,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"47fd9947-14fa-41a8-93ae-7ebf241752bd","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":40,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"2d4ece42-0c51-4f32-a4ed-d67b724aaa81","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":40,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"757c7cdd-0a26-4332-88e1-a50f47319fc5","block_type":"box","text":"issuers that the Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":40,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"f9c781e3-3307-4c10-8ca5-878c4a7a6db9","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and may be more","page_number":40,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"2649e0de-5c38-48be-afaf-5386248df5f8","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":40,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"346c088c-ff25-4848-85f8-062722436d1a","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":40,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"8715bd70-2aef-4c79-82eb-dcfff68d0e0d","block_type":"box","text":"determining the creditworthiness of the issuer. While the market prices for an asset-based security and the related","page_number":40,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"2ffb6984-e890-44d3-a1ae-54ca2717479c","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be perfect correlation in","page_number":40,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"03d0cffd-7b5d-4013-946f-9ae58ce08a79","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":40,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"ba839a98-8f03-4e30-b18f-3f335f51894f","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":40,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"41b24614-5332-4686-80ba-c17c79ab62a3","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be payable","page_number":40,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"54fab815-f940-4bfc-8603-09e754ce8974","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":40,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"1f0a6263-7971-4e52-8fc6-a548df47a382","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":40,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"aea6ef2f-a91b-4710-ae8f-81479aa54160","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":40,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"21b07c16-543e-4213-a493-0f18e87bfa98","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":40,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"9e300b9d-5c13-4257-a1f4-b1bc636201fa","block_type":"box","text":"appreciation in the underlying asset.","page_number":40,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"db19561f-090a-498f-8725-d4977ef3a42b","block_type":"box","text":"Precious Metal-Related Securities.","page_number":40,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"891813eb-d3a2-4c69-8b13-0987a3c9c908","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":40,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"ef212095-c297-434e-9c08-e8f54936d5cc","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":40,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"598ee5dd-239c-4060-81f7-c161a4d3d4fa","block_type":"box","text":"e.g.","page_number":40,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"fe6a2aea-145e-46f4-bd62-2e116d9a6a98","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":40,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"744ccd7c-68f4-443e-ab12-c73c87404f63","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":40,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"3aaf871a-a2e6-42fb-8218-a4f2454c8fb5","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":40,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"f873d256-8e8f-47e1-8c6e-d7d3b7feaf2f","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncertainty or instability.","page_number":40,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"1a4dc7c3-82f3-4f8b-b8ea-f04b2699ef15","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":40,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"319cfc84-49c5-4db0-af75-af5bd5636527","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":40,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"4f52c621-51df-4f15-9bc9-a775a5b37ce5","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":40,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"1ca415a9-a1fc-4f79-8656-2b1f7e89b15a","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":40,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"88885f7c-cc51-4a48-8d61-a7b32f4ae785","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":40,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"01d0576c-afcc-4d2b-bc17-4d94a6db7726","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":40,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"9d1bf3b3-020c-4f23-9bc5-01a9d0b225d7","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":40,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"634e9877-3e3b-4e03-9fec-36accb11c77f","block_type":"box","text":"South African gold production.","page_number":40,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"df0a34f5-2432-47f1-974f-0362f4a318c3","block_type":"box","text":"Borrowing and Leverage.","page_number":40,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"ac960cb8-ed63-4cab-bf30-8e2ce96969ad","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":40,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"605adf51-aa9a-473c-ac2b-d176dedc50ac","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Certain Funds will not purchase","page_number":40,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"4a25fd4b-c1c6-4a87-90bf-f3c17582ba46","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":40,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"591f69d6-36c0-4982-bce7-9d269d73e725","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":40,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"7fac4a52-03a2-41bf-9ca7-fc56077bb3c1","block_type":"box","text":"other securities transactions.","page_number":40,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"412dfa6c-9059-4562-94a0-fef04dff5201","block_type":"box","text":"Certain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":40,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"65dcf43c-bed7-4c3a-bc8a-03f3e63f1143","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":40,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"6ab0ec7a-a511-408a-b08b-569422045da4","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":40,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"9e221bf2-b7ed-4394-b283-b521c325d0ef","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an opportunity for greater total return, but, at the same","page_number":40,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"306a6e5a-ca24-4b36-a132-84e148350115","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":40,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"c3af61c3-d18c-4aff-8d48-f24873b0c6fa","block_type":"box","text":"shares and in the yield on the Fund’s portfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":40,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"c52f184b-184d-41f5-99b2-8edc3a6c643c","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":40,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"fbf7383b-d4e4-4e16-a695-44756bf3b258","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":40,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"704b2655-d527-4b6e-9f45-285fc5edc4a1","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":40,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"3cf8286a-183a-46c8-83d7-aa15772eccab","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":40,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"45a12108-8091-4257-b1c3-b3d945228331","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":40,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"f4160ccf-3eb0-4a9e-b3b6-236f4295642a","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":40,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"f5da669f-9170-4de7-896b-bcecb1546116","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":40,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"6854cfb9-342c-4825-8591-6372752f0e8c","block_type":"box","text":"II-2","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"354bd9af-ccd6-43bd-bd9d-0fa9f68206b0","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"315bd62f-c70e-4e7e-808b-5996c155b0a6","block_type":"box","text":"nevertheless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":41,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"94ccdc69-0927-40e1-bc8b-2d4990172db7","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":41,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"b5f976db-f2eb-458b-af27-44862f4f3718","block_type":"box","text":"Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":41,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"b49b606e-48b1-4f93-95c4-355f576541ac","block_type":"box","text":"relating to asset coverage, portfolio composition requirements and other matters. It is not anticipated that","page_number":41,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"00636499-65ba-495e-bb94-130a278fb79b","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s portfolio in accordance with the","page_number":41,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"100b195f-45af-4283-9deb-5a2a5d2ed211","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":41,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"32e00628-57ae-4eed-b49d-0f2b9595dc9f","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of portfolio","page_number":41,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"7d967db0-3507-46cc-bdf6-8bcb5ca572a1","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":41,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"b9cf1aa1-304b-4f92-8638-ce491919063a","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":41,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"662a064b-5123-476d-9fdc-52c94ffb3edd","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":41,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"2a28e74a-e77a-42bc-aefb-30c029e5f9ab","block_type":"box","text":"Cash Management.","page_number":41,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"76e503c0-9ef5-4101-8859-aaf6b083b283","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":41,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"ac6d8e52-69ce-48a0-8f19-1f8a75c0f3fb","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":41,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"41f9aa70-e9dd-48ad-8aa1-3d7836a27aa6","block_type":"box","text":"in the opinion of the Manager, a portion of a Fund’s assets may be invested in certain types of instruments with","page_number":41,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"7eba4f66-7a92-43da-aa93-fc88072e9a97","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":41,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"034d8699-96a8-4f2b-9d33-42481c32fe2e","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":41,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"9cb8a342-d3fd-4805-b4b3-bf2f447aa96e","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":41,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"c0f1d939-8205-420f-a53a-b33fb5c4e58c","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":41,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"92f852f3-3ef9-4d13-8edb-874d0b4d6401","block_type":"box","text":"certificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":41,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"844da79a-9d9b-451a-b8da-58f7359d681e","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":41,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"54050cf2-2824-47ca-af0b-87ce66c1d5e5","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":41,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"0fb34585-43a8-4914-bbdb-ffc3e22a8c30","block_type":"box","text":"obligations or other short-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":41,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"4a874001-14b8-46be-982f-0f5cdc6d2b6a","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":41,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"7038a655-2b17-42c7-aded-75aa7f2e4673","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":41,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"cc1678f2-cdca-420d-bd2d-925d6342c6db","block_type":"box","text":"Collateralized Debt Obligations.","page_number":41,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"34d277e7-9ad8-4c8b-92b2-be3b2f0113e9","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":41,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"d2e202e2-3f68-4d28-8c68-2528ede62a75","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":41,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"779d7d0e-9b5a-4960-b272-4ba703c424fb","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":41,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"0cac203d-804f-4cb1-9566-b573d7be1e09","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":41,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"1969ed10-611b-4b99-bb7d-f406fbefb8e6","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":41,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"5c49aece-f223-45ca-a459-6f56d381f9e0","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":41,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"98e331bd-11ff-41a7-b6b4-e4fb302a1001","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":41,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"799b6cfa-14ad-48d8-9e4a-663cfea782af","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":41,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"9d129bc3-26ae-496e-afcb-68fd97d2b0a6","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":41,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"64c9399a-7770-426b-9ef3-efdf34e69630","block_type":"box","text":"substantial portion of which are U.S. loans. Although certain CDOs may benefit from credit enhancement in the form","page_number":41,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"b4635dd2-7161-43db-95b1-78db0f6a2a00","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":41,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"464abf9b-36a9-4c37-ab93-1ef71c5bba93","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Certain CDO issuers may","page_number":41,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"8f1416d2-4d11-4c44-ae7e-74294c94dfc8","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":41,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"c53f608a-a5a9-4ad1-ad5a-8aecd5af6d1a","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":41,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"dda66ecc-be7b-4e95-addc-e4b6974800df","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":41,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"0326c648-b650-44a4-b4ac-5dc2bdbd1cff","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called tranches,","page_number":41,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"e49be21c-1f43-46d7-891e-5713f3eec5f3","block_type":"box","text":"varying in risk and yield. The riskiest portion is the “equity” tranche, which bears the first loss from defaults from the","page_number":41,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"f8a45c0a-8490-42f6-bde6-6824819eac26","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":41,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"1fe08a14-0be5-4137-a023-0f2010878fe4","block_type":"box","text":"is not complete). Since it is partially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":41,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"31caab1e-dd96-4e3c-b007-9d642c2d35b5","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":41,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"a7429f89-5815-4cfc-948f-c31ef934081b","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":41,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"b51bbbfd-b662-43bb-94ff-2484d65ed695","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":41,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"c0973d5f-7c27-46ec-b79c-f6f0a1b63bfb","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":41,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"71f7377e-c1c8-492e-87f1-75af67a7448e","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on certain tranches","page_number":41,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"776875a4-5e5d-4dcd-9739-e5335c5b8aa0","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":41,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"89ed2890-3b11-430a-87c5-ab6829f8cd12","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":41,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"102567c6-14c4-4020-b8e9-8b9ca20e3963","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":41,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"13b019aa-e689-4862-83c6-02f7c878e843","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":41,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"3273d8c6-e993-4de1-88d9-fc4468fbdc10","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":41,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"25b9210c-5377-49d4-baf3-2a13a981b03c","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":41,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"30934c37-de78-49f1-8698-bd43921c1413","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":41,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"4ae9ab66-e29c-4730-abf3-9325fd040db3","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":41,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"b16c7090-db12-4689-8848-22e614d612dc","block_type":"box","text":"II-3","page_number":41,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"45d4b554-0714-40b0-9644-c5a6c2dc2665","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b7080507-3f0c-4c81-a560-a46051a14a8b","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":42,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"989c079f-f108-4b48-b02c-6e744cb1c7d2","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":42,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"c7418c05-b453-43d2-845f-4eee1f319a45","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":42,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"79cff464-9bcb-489e-a1f4-c374cb1c58f9","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":42,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"b42602f3-1f76-4398-845a-9a33ba7e109a","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":42,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"cb15ef7c-a843-4bd0-962d-80ad76aeccb1","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":42,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"2622c25f-7aa0-45b7-be7e-03c39e9bd12e","block_type":"box","text":"CDO’s manager may perform poorly.","page_number":42,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"e2342081-5967-462f-8eb1-412c19cb4624","block_type":"box","text":"Commercial Paper.","page_number":42,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"10af7d99-58d6-4a1a-8d7b-699ad3842263","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":42,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"3280949f-23bc-4768-b179-07faa333bcc1","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":42,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"bddd8b08-b471-4a47-a488-1ff92a9183bd","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":42,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"fda98949-b916-441c-b392-ef6f35f111e2","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":42,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"ef76e83e-7681-46c9-8184-2565fbfe4fe6","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":42,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"5e5ab257-37d5-40d9-bc83-1e2e71b6a973","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Certain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":42,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"2a5774d0-567b-4c84-9f8e-59855737ce01","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":42,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"e764f46d-762b-4213-8e75-551819cb263b","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":42,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"b81e47b4-100d-469a-8ab3-90966f9507f1","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":42,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"329c1845-e6d0-4cd6-b583-5d0b7e8dfefd","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all fixed income","page_number":42,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"67c80a4f-2579-485d-a3d8-220426f4a4eb","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":42,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"2a054a5e-7616-410c-8376-2140b438ebbe","block_type":"box","text":"paper prices will decline and vice versa. However, the short-term nature of a commercial paper investment generally","page_number":42,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"daab42b0-9f5e-406f-8a62-af1e42d89ee9","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":42,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"a92b80fb-8a29-47c6-95b7-6b32ef552b79","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":42,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"fd668acd-b219-436f-a2d1-259c67d4b434","block_type":"box","text":"debt because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":42,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"28c33197-bbb7-4451-ae13-99a5b48fae4e","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":42,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"46051afe-b079-40f0-a0ab-6a97441697d7","block_type":"box","text":"Certain Funds seek to gain exposure to the","page_number":42,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"90b89d3c-80ff-4ee6-a9a4-04f5c23ee5fb","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":42,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"e23865cb-5d0e-42ee-bd5d-13a0ac2c48c8","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":42,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"d0f5725c-10c6-498e-a6b6-717638c99605","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":42,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"1a7cd2e1-a8f8-4fc6-94dd-da31de71e693","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":42,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"2fe23e20-e1a3-4bbe-b87f-f732a177debb","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":42,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"40039228-97cf-46d5-87d7-fb3c6a9b213b","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":42,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"f5dd7ccb-d72b-4c6c-96cc-48acafbedc59","block_type":"box","text":"variable.","page_number":42,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"acf200f5-fb0d-4624-8e70-f6900a140ccd","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":42,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"36f8ba5a-b367-4b3e-9595-e29ef3f3c706","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":42,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"f705253f-f7e8-4bb2-a39b-9f05ea9f3589","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":42,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"109f5e20-e892-4a73-a282-42d67f365892","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":42,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"e14a75ab-47c5-4968-9519-5bd899bb650c","block_type":"box","text":"rising inflation, the prices of certain commodities, such as oil and metals, have historically tended to increase. Of","page_number":42,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"276ada10-2586-4bb8-a1ce-e26483a7196d","block_type":"box","text":"course, there cannot be any guarantee that these investments will perform in that manner in the future, and at","page_number":42,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"b5438b9c-bc66-4fbb-8c39-0acb6ef73813","block_type":"box","text":"certain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":42,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"cef463ed-98f9-4e3b-a06a-2a08b4078575","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different parts of the","page_number":42,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"115c1f89-2a6b-4790-b8f4-ccee886f4587","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in tandem with","page_number":42,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"fb6af82c-5d96-4f29-9e2b-bf23a729ce92","block_type":"box","text":"the prices of financial assets and thus may not provide overall portfolio diversification benefits. Under favorable","page_number":42,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"8b31c2a2-1ffc-4bdb-b5ac-ed8d702ac548","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-perform an investment in traditional","page_number":42,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"45799178-970b-4ed9-94b5-e8b41d5600f9","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":42,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"473803c1-f8b0-47db-8aa5-7e2b1586de53","block_type":"box","text":"correlation with stocks and bonds.","page_number":42,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"68738e24-2b22-4d06-bb74-56bb14fb41a9","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":42,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"a4e2e693-ec11-42f2-9ef7-56cd59c7887c","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":42,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"c930889c-c9d4-4379-bd57-5d3ac690cb77","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":42,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"a59cc9c0-1a80-43d0-b9b6-698c1eff8207","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":42,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"2a302800-b5a2-404c-90ef-0d1846cbe77c","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":42,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"f99ac59c-14f8-466b-9d51-8a41107035ac","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":42,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"61a0500c-586d-418d-b3d2-762881131508","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":42,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"2db8116e-7868-488d-8acc-773ba57a0333","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":42,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"c2fe891e-a135-43cd-af87-4914b0543b30","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":42,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"a8b13775-a38f-47db-86d8-2dd6e7b884fe","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":42,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"fba1de72-ef55-4063-9343-548558bfa279","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":42,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"bbe676ba-a105-407d-acee-f10e36a2a489","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, partially protected, or offer no principal protection. A","page_number":42,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"273dd86a-5b2d-4c5c-be5d-2e88ae88c2ee","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":42,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"27c6488f-98dc-4ee5-af64-7ba515559e04","block_type":"box","text":"II-4","page_number":42,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"4ea1f1ce-4660-4f0e-b33c-f5d8cbc7cfcf","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":42,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8d78b24c-c8d5-4ec6-8a8b-42376349432a","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":43,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"28082c3a-e0e0-4f88-a82d-2cfb11774b8b","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":43,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"f9cb80d5-e83c-4b89-b460-1c6b22b1a020","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":43,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"41e4b4d4-440e-4c30-bf98-49f92cebc931","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":43,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"236f39a2-ca8e-4665-8cf7-b2b0d1518211","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in part on the","page_number":43,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"6c3e1cd7-ab9a-4bee-8a3f-dc254bf8e274","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":43,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"5d0e78d4-5ed1-45cc-b975-4ec9fe8f5553","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditworthiness of the issuer. With full principal protection,","page_number":43,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"32c5a69b-d110-4598-bfb8-9822159118ed","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":43,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"ae6343dd-0078-4687-b892-498831c72d6b","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":43,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"4b6ed080-7d94-4821-bca2-2d7c5dcaff1c","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Partially protected hybrid","page_number":43,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"921e150e-b922-450d-b61f-d2106c588311","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":43,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"5195085a-33d1-441f-9f2c-bb7466a46ed2","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":43,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"f0ea2491-5001-4cac-862b-8093dce8554c","block_type":"box","text":"partially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":43,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"bd4f3662-292a-4723-b6c4-095be3c7a40d","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":43,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"49281428-90e2-453e-a1f3-f66954f841d4","block_type":"box","text":"Certain Funds may invest in hybrid instruments that offer no","page_number":43,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"bd71d089-6ebe-4966-b186-d87c620a6360","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":43,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"d8fd954d-ca3c-4a59-ba12-ed8ad8dd1da6","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":43,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"009fa7f5-abd8-4dfa-a5e9-6a0c57be01c2","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a partially protected principal","page_number":43,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"3bf54c02-a250-46f9-adb1-aa1fdf23994e","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":43,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"b56aad27-88cc-4a54-925a-c6c767f6b39f","block_type":"box","text":"Manager may consider, among other things, the expected performance of the underlying commodity futures contract,","page_number":43,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"718b91ab-bbe3-453f-90b1-8283cff395c0","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":43,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"fe414b3e-9a14-4c9b-ac76-4e9c5dcd62e8","block_type":"box","text":"the Manager believes are relevant.","page_number":43,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"e1293c0b-8507-407d-bd0e-29871ae73779","block_type":"box","text":"Limitations on Leverage.","page_number":43,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"8c41b1f5-506a-401f-99ad-abf063d227cf","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":43,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"9bd635af-17de-4c8f-bdea-77f512e1d6ea","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":43,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"47698d45-7dbe-4f90-876f-8e75e1083965","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall portfolio. A Fund will not invest in a hybrid","page_number":43,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"452e4e62-1f5f-49f8-8524-e2fbf3f68991","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":43,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"42a7e0a8-01ad-4960-ab68-2ace00df996e","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “portfolio leverage","page_number":43,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"659703cc-db8f-4b56-8b96-df1af1bd4b84","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":43,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"713249ce-e3fd-407e-9e45-3ed37a83d6e4","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":43,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"6e8cc7c8-e43e-4073-b21f-647ef14ba21c","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":43,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"c5f4960b-a760-45f3-9d3e-75d8be4fcbe3","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":43,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"a931a107-6267-43e4-bd2b-33071d34ffa7","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":43,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"5fc8b0a4-eeae-4f1d-ae19-5e35ea50b07d","block_type":"box","text":"variable lost 1% of its value. “Portfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":43,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"1b2fcecc-e028-4493-b6b9-0bf5f588485e","block_type":"box","text":"instruments in a Fund’s portfolio, weighted by the market values of such instruments or, in the case of futures","page_number":43,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"dce47d5c-1541-47eb-a43d-9924113f6ff0","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":43,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"d1e1f7df-d4d0-4139-8640-1a1a67a11bb3","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":43,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"e565b983-e44c-45e4-a5a9-6d2189cbcc17","block_type":"box","text":"Counterpar ty Risk.","page_number":43,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"bf522254-3c09-4a05-a91c-75972a41167e","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded futures","page_number":43,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"1e4cc5a8-8cbe-4605-bad1-e1895986bf5b","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":43,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"c609d85a-d16e-428f-8b2a-865a07808f97","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterparty is the exchange clearinghouse. Exchange","page_number":43,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"56001a09-e63a-4fcb-956c-c1bcd008aaf5","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":43,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"9bb68595-9ba8-4cc0-9bf3-d8a3468af070","block_type":"box","text":"e.g.","page_number":43,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"0c097aa6-31c2-4b9c-9244-088dd5a1b7b8","block_type":"box","text":",","page_number":43,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"0df49787-aaca-452c-ab77-eede3e398510","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":43,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"88519002-f831-4f9d-aa7a-1efae4879bb8","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterparty credit risk of the","page_number":43,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"e46ded66-b6e6-4fd3-9e28-8a3e71036441","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to perform its","page_number":43,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"d8c4d84e-6966-4e01-9e6b-27b5821a9cbc","block_type":"box","text":"obligations under the structured note.","page_number":43,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"6015963c-57a5-44d8-a646-e02750d9efe7","block_type":"box","text":"Convertible Securities.","page_number":43,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"76bf5f7a-8ce1-4cbd-955b-78774305d3d3","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other security that","page_number":43,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"5a7a61ea-7e25-44ba-824e-ee34a86e1d02","block_type":"box","text":"may be converted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":43,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"9aeb8a4c-5593-4503-ba96-8ce5fa5467dc","block_type":"box","text":"a different issuer within a particular period of time at a specified price or formula. A convertible security entitles the","page_number":43,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"1933c522-9c13-48d0-96dd-a2da6bd9ac85","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the convertible","page_number":43,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"4effcf95-d9b4-4ec4-b08b-66776b009282","block_type":"box","text":"security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have","page_number":43,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"d9dd6d72-3e0b-4f5e-a41f-09dd730646ec","block_type":"box","text":"characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income","page_number":43,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"0d7eb243-2d43-4b29-9f9a-e93650aad29a","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":43,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"4ccc1f59-7502-4060-8ecf-04c0897b0317","block_type":"box","text":"comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":43,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"317a3194-4944-44c1-818b-4a430c6d1f9b","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":43,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"8f018eef-8a09-4971-9742-2b53c70a7f92","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the convertible security’s investment value.","page_number":43,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"211605d0-934b-4e35-8965-f9dbd02ed372","block_type":"box","text":"Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":43,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"e9f75ea7-4648-43b9-b65d-039879929591","block_type":"box","text":"to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the","page_number":43,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"fa55dcae-bf86-4839-af3b-c80087e9ebd5","block_type":"box","text":"issuer at a price established in the convertible security’s governing instrument.","page_number":43,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"21fdcd16-9a09-45fa-8336-661603448a60","block_type":"box","text":"II-5","page_number":43,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"7e6d735c-a0eb-4fef-9c04-cf5c9b5b0dfb","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"92cf6b4f-a9ad-46de-88d3-5ac5b950ada4","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an investment","page_number":44,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"5a1de3a2-d1a2-4006-9c5f-4b9ef8dbb794","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":44,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"47e8696e-25ed-4581-be0a-925ce33fe1e3","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":44,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"afef354e-ff9a-4f90-b0e0-4ba1c6f9a288","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":44,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"02d60661-7b09-4a18-b7f8-f257dd1c87af","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":44,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"32f8018e-14ca-43dd-9d25-8b95426f4a4b","block_type":"box","text":"feature, however, the interest rate or dividend preference on a convertible security is generally less than would be the","page_number":44,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"dd72bd82-3eb2-42a9-a090-a6026baad6fd","block_type":"box","text":"case if the securities were issued in nonconvertible form.","page_number":44,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"b07a0b1f-f57c-4507-903c-a318937d5afe","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security relative to","page_number":44,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"297569e5-33fe-4a35-afda-81217bcb3a83","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":44,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"bcde0901-5af9-4c0c-987b-9c20c4ac1832","block_type":"box","text":"things.","page_number":44,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"cb57572a-d370-4dc4-b13a-88a21c1fb098","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":44,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"a36e69b1-811c-4199-826f-4b2a25763dc1","block_type":"box","text":"substantial portion of the convertible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":44,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"ddef2f37-2533-4df3-8162-401dc3a464e2","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":44,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"0e2c0741-d6c6-49e4-9074-d70da37555e0","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":44,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"33b114a0-b092-4f0e-a88b-68e7f4c65e5f","block_type":"box","text":"price is quoted will affect the value of the convertible security. With respect to convertible securities denominated in","page_number":44,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"8d86963a-5221-4113-8b82-4e0d1788f752","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":44,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"77629e6a-967b-4b46-b751-7c72012b3e77","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":44,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"0a139dbc-5fc9-4f71-aed1-81e3c043d7be","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":44,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"b07836e1-85d4-49e7-a3bc-355c5ede1d96","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":44,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"016fb1cc-7475-488d-b372-8f413a374dc4","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield on","page_number":44,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"5c8d0abc-7a6f-4f83-b13f-d47387bc2197","block_type":"box","text":"nonconvertible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":44,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"c5409174-8be2-48d7-bd3a-7592c7c788b4","block_type":"box","text":"convertible security viewed without regard to its conversion feature (","page_number":44,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"e035e340-c18c-4f90-8ad9-a2c238c18cc2","block_type":"box","text":"i.e.","page_number":44,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"86d41959-c021-4482-8ec0-77554bedc2ba","block_type":"box","text":", strictly on the basis of its yield) is","page_number":44,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"78b1562f-0780-4519-ba61-e318c090fea1","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":44,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"3c03d1c8-8bd6-48a2-98fb-c59506fc3ee8","block_type":"box","text":"convertible security typically will fluctuate. At the same time, however, the value of the convertible security will be","page_number":44,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"0b325053-91f5-453a-bb35-11b8fb7ea87f","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":44,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"f4d41475-057b-4e17-8ba0-69466dff753e","block_type":"box","text":"obtained if the convertible security were converted. Conversion value fluctuates directly with the price of the","page_number":44,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"775f3bcb-27e9-4531-8977-9ca25de031c6","block_type":"box","text":"underlying common stock. If the conversion value of a convertible security is substantially below its investment value,","page_number":44,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"2656b07e-2331-4b59-bc91-de296121114e","block_type":"box","text":"the price of the convertible security is governed principally by its investment value. To the extent the conversion value","page_number":44,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"929c3576-9379-4b3f-9ca4-e66cd7f3dcd3","block_type":"box","text":"of a convertible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":44,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"01bf7c3b-4ae9-4712-905e-dc0560e5b257","block_type":"box","text":"convertible security will be influenced principally by its conversion value. A convertible security will sell at a premium","page_number":44,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"d26d0276-f609-4ae2-ab69-7bdfd595584e","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":44,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"e32b7532-af82-4db4-8f1e-d7da58f548e9","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of convertible securities issued in Japan and","page_number":44,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"5f11c5fb-4abf-4648-af75-25fc5c50bd13","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":44,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"5e891981-0b1d-46b4-8572-8e9cca063f50","block_type":"box","text":"than the securities’ investment value.","page_number":44,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"ad9eb198-fe93-4fc3-940d-59b0beb25ecb","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":44,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"aa7baa6b-f191-4fc2-bcb5-d4a5cdd74256","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible security may be","page_number":44,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"274ce9d6-a91d-4222-9cba-7f0bf826237e","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a charter provision, indenture or other","page_number":44,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"ac3b7dda-2cd5-44ce-9751-49ebb2d335f9","block_type":"box","text":"governing instrument pursuant to which the convertible security was issued. If a convertible security held by a Fund is","page_number":44,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"72aea489-3795-4ebf-85c7-e190bc466eec","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, convert it into the underlying common stock","page_number":44,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"e09b8213-3c50-4764-bc31-e82bbd544878","block_type":"box","text":"or sell it to a third party. Certain convertible debt securities may provide a put option to the holder, which entitles the","page_number":44,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"9e97f805-e0dc-4ed8-a049-b9501fbf3194","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":44,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"c43a1095-a0df-4b9c-bdb0-27a118733c57","block_type":"box","text":"security under certain circumstances.","page_number":44,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"02db4564-6eb2-45d1-8527-fb258c84cc8c","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include either","page_number":44,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"762372f8-c215-45af-b656-d651a35c4d7c","block_type":"box","text":"Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are instruments that are","page_number":44,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"0fc2335d-8eea-400d-9aca-2e223ed93c6a","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional convertible securities but may not actually","page_number":44,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"2711b8f5-a117-45a9-b4db-e5760438b1c2","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":44,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"85f29042-2590-488e-b6d6-614caac4ae9e","block_type":"box","text":"issue a Cash-Settled Convertible that is convertible into common stock only if the company successfully completes a","page_number":44,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"6d8863fc-de15-4d08-a14b-ce1a29fdde4e","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":44,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"847b5223-89d8-4720-a2e5-32c1dcb8be8d","block_type":"box","text":"appreciation. “Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":44,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"05ed487e-84a1-4483-9292-a5f17992b337","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":44,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"ed85c19b-fe92-4028-ae70-140106bb5283","block_type":"box","text":"i.e.","page_number":44,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"932f8abf-3516-47e4-a5d1-62e925d5be9d","block_type":"box","text":", fixed-income (“fixed","page_number":44,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"b6b23591-48e2-4c75-9885-9c6a305b12cd","block_type":"box","text":"income component”) or a right to acquire equity securities (“convertibility component”). The fixed-income component","page_number":44,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"e0c72430-4471-4635-a548-c4dca009bcda","block_type":"box","text":"is achieved by investing in nonconvertible fixed-income securities, such as nonconvertible bonds, preferred stocks","page_number":44,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"e6fcf81b-b87f-4f26-9625-22b218a71064","block_type":"box","text":"and money market instruments. The convertibility component is achieved by investing in call options, warrants, or","page_number":44,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"27128c86-5c82-4097-a20b-761e5ae9e1d5","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":44,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"295eca1c-d11a-4101-8e1f-fab8baa6e7ee","block_type":"box","text":"II-6","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"cfbe4262-cdaa-49a4-b91b-5196bc9dda50","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a1e01f3-e317-4fcd-ac6b-3f87ae8d07d6","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":45,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"87c402a0-e753-41ac-ba25-677713802e4d","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":45,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"aff1d319-f695-4fe9-8160-a488e3c10eb1","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a traditional","page_number":45,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"ec3bd9e0-e411-4e1b-9feb-1b70b701f175","block_type":"box","text":"convertible security, which is a single security that has a unitary market value, a Manufactured Convertible is","page_number":45,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"8637bd4c-affd-4a8b-83cc-92f29d342a08","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":45,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"fdffaec5-b0e7-475a-9075-80dc88370b4c","block_type":"box","text":"such a Manufactured Convertible is the sum of the values of its fixed-income component and its convertibility","page_number":45,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"51fef027-cf61-4891-9959-42ba3881b3ce","block_type":"box","text":"component.","page_number":45,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"5749bbfc-047c-49b3-8c38-062b18eb78d9","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a traditional","page_number":45,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"dd706ada-63c5-4882-a92b-1e999b2f7f48","block_type":"box","text":"convertible security. Because many corporations have not issued convertible securities, the Manager may combine a","page_number":45,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"62ba8bd9-f27b-4389-9c77-30d279c61e89","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":45,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"2f7e5cdf-74db-4fea-9511-e6b4aa64995d","block_type":"box","text":"to create a synthetic convertible security otherwise unavailable in the market. The Manager may also combine a","page_number":45,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"28dfab86-d323-44f3-92bc-4890a36b8740","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":45,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"100344be-2579-4ed9-9ecc-492c58422574","block_type":"box","text":"Manager believes such a Manufactured Convertible would better promote a Fund’s objective than alternative","page_number":45,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"ff6c20f1-3943-4095-8886-da8929ebd4ab","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":45,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"2fb1bfa6-bc2d-4213-825c-31eaa6733a96","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":45,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"e1afde21-e136-4c23-8411-43f68f59fdf2","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional convertible","page_number":45,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"6a7770a1-75ca-449a-9379-0c9a0d35bb09","block_type":"box","text":"security issued by that issuer. A Manufactured Convertible also is a more flexible investment in that its two","page_number":45,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"78fdea8a-352d-4dec-9d45-7d1c2696ae63","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":45,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"5355aa70-35ea-4e66-afb0-dbe138e4b0c4","block_type":"box","text":"Manufactured Convertible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":45,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"64b25b53-45dd-439d-aa6e-d2b31a28da35","block_type":"box","text":"Convertible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":45,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"d748acf3-ea56-4211-b731-55c71408ba04","block_type":"box","text":"favorable market conditions.","page_number":45,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"6559ee13-96fb-48b5-bbd9-959be72efbb5","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a traditional","page_number":45,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"57413e64-d9ab-4ed9-8f48-a50c9e5c8cd0","block_type":"box","text":"convertible security with similar characteristics. For example, in the event a Fund created a Manufactured Convertible","page_number":45,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"feb97974-0d91-42a5-b4af-e99df9d6a95d","block_type":"box","text":"by combining a short-term U.S. Treasury instrument and a call option on a stock, the Manufactured Convertible would","page_number":45,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"6cb55abe-cbb3-4feb-ab48-28c525fe6603","block_type":"box","text":"be expected to outperform a traditional convertible of similar maturity that is convertible into that stock during","page_number":45,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"3fd7a264-91e2-458a-a5fe-0f3d5f06286e","block_type":"box","text":"periods when Treasury instruments outperform corporate fixed-income securities and underperform during periods","page_number":45,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"bbe25238-2b89-4777-be15-c40d4acb2963","block_type":"box","text":"when corporate fixed-income securities outperform Treasury instruments.","page_number":45,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"8836501f-9aa2-4fec-b837-4180e5aacc15","block_type":"box","text":"Corporate Loans.","page_number":45,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"cb4ea16b-f60b-4800-935f-3b40ec87b49e","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":45,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"8f22be95-3be0-4b18-92b2-1b877e514aa0","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Certain Funds may invest in","page_number":45,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"84d17475-0de0-493d-943b-7418a633a9d4","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":45,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"c9c1719d-ea8f-480c-932d-089859440bb8","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":45,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"37b97844-13d2-494d-80b1-3ed26b8a3661","block_type":"box","text":"in such Loans in the form of participations in Loans (“Participations”) and assignments of all or a portion of Loans","page_number":45,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"29119e12-dcd8-4181-93f7-c9387b65217f","block_type":"box","text":"from third parties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":45,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"811b89f3-6163-4894-9fe8-3724995d9c5c","block_type":"box","text":"purposes of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":45,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"0a3d8f96-f02b-40d6-9dfd-81da3517accb","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":45,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"7fa88f64-a832-42d0-a6f7-3a6a357f3f83","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Participation and only upon receipt by the Lender of","page_number":45,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"ec6f136f-c8ad-44b2-82ee-47a2b0602c19","block_type":"box","text":"the payments from the borrower. In connection with purchasing Participations, the Fund generally will have no right to","page_number":45,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"bd3ec7ae-bc96-4f4c-aee0-234adf30b791","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":45,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"96d93738-ffa4-473b-8e35-2f13da7ac00f","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral supporting the Loan in which it has","page_number":45,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"fcf3ca89-aba0-4d38-8e3a-07417cacd70a","block_type":"box","text":"purchased the Participation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":45,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"9186a8e8-890c-4d0f-82f9-a55c0ed71411","block_type":"box","text":"that is selling the Participation. In the event of the insolvency of the Lender selling the Participation, the Fund may be","page_number":45,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"15bced35-37e7-4318-b6b4-f872e2b9fa1d","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":45,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"f8694a90-ae7a-446c-b9c9-6749146feed3","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and the borrower is","page_number":45,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"696b59d3-a5ed-4275-ab55-030b65a1633f","block_type":"box","text":"determined by the Fund’s manager to be creditworthy. When the Fund purchases Assignments from Lenders, the","page_number":45,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"972561dd-fbf4-49cb-9c2c-3cb81939602b","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterparty’s credit","page_number":45,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"3820776f-8c6f-46f0-ba61-ca9f713e8a50","block_type":"box","text":"risk. The Funds may enter into Participations and Assignments on a forward commitment or “when-issued” basis,","page_number":45,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"b8e60dcd-5208-45b5-b325-5d7fbe0ff6f4","block_type":"box","text":"whereby a Fund would agree to purchase a Participation or Assignment at set terms in the future. For more","page_number":45,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"50cb0424-c6f6-4e64-81cc-04293124c17c","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":45,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"c92f74f5-6eb2-4bc2-bf10-6f593d7bc694","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":45,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"83f59085-e2fb-4f58-982a-05aee7ab4220","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market for such","page_number":45,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"c67cd547-2d84-492a-acce-dff053e3c71f","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":45,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"bbc6989d-cc34-4bae-803f-d5bd041a7654","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":45,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"b297b6a2-5d92-460e-b175-9cd93df83a79","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of particular","page_number":45,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"b8433b0d-4ff2-498d-9b68-a2ccf2574b3d","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the creditworthiness","page_number":45,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"945f4be1-a465-4901-a053-813b18e2edc2","block_type":"box","text":"of the borrower.","page_number":45,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"af5c0f13-7b0a-4023-967b-a63b540bb25b","block_type":"box","text":"II-7","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"cf1769c3-ec1e-4257-a451-939edd2fbe7c","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"071e32e8-135a-4108-839c-59d2c622cff9","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":46,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"66d5024d-5142-4cde-a4c6-e46d520cb58a","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":46,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"5193d40e-79bf-4045-8380-cfb89700f598","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":46,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"8cace4f3-aa78-44ae-bb6b-44a1a842331d","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":46,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"6d87ba4d-8cbe-4088-a8b5-de4644138488","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":46,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"86a53aba-b362-49ae-8084-aa95a3b7f49e","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":46,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"4dc9ef87-3c17-4043-902c-c2f196598cfd","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":46,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"13af75f1-9a23-4f41-9322-1b0375a79bc2","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":46,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"7098c0bc-eb06-4c50-b8cc-abf6da74cf08","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":46,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"5dba7cd3-8326-470b-8882-83344b732f4a","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":46,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"fd29909d-6b45-489a-920d-7e4bdf4ca227","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":46,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"d6994c89-9d82-4462-a112-e4a60ad0ca61","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":46,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"f6cefeb5-8a34-4d12-9927-f9442be1cb04","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to short-term liquidity needs, a Fund may hold","page_number":46,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"5f898d96-43fc-4b6e-b70c-46698bbaddcd","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":46,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"6003a5b4-7276-4d38-af87-b52932a88fe9","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities laws.","page_number":46,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"16a3c85f-865b-42bb-84a0-e9c38647c987","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":46,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"21633ce5-ade4-405b-9ff1-aed7cad27df8","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":46,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"a5bf27b6-f9e6-4688-8d76-f3e6a0661321","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, parties generally would","page_number":46,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"34a531c1-138c-453f-9f2f-f0c679e736ce","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":46,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"414d3172-7dcf-4763-ab8c-2ab4a8063a0d","block_type":"box","text":"state law.","page_number":46,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"ee73448e-b5c5-49b6-81d8-8ee960df30a9","block_type":"box","text":"Direct Lending.","page_number":46,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"3854e834-984d-472d-b563-922fdde24edd","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":46,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"81a6c4f4-de84-4828-ba14-b56456ad5941","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":46,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"c7c9eb15-4c5c-4dc4-ba2a-73451dd3c93e","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":46,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"3898e004-3535-4531-ac0e-5c0d4f531db9","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":46,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"4e7f4f45-1567-44ff-9e4b-bc7a7d5ade48","block_type":"box","text":"Furthermore, a direct loan may be secured or unsecured.","page_number":46,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"20ce5e45-5a30-42b5-995c-cdfe90505f76","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the","page_number":46,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"e9d79275-6376-493d-94d0-da20e158e3fa","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":46,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"1cc8359b-b865-4dbb-9472-f4f9317697ba","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":46,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"7bb5aace-c17e-45ea-a73f-fac12485d342","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":46,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"5cd86d5f-7cb5-46aa-ab36-a46fe45a9b8c","block_type":"box","text":"money on the loan. Furthermore, direct loans may subject the Fund to liquidity and interest rate risk and certain","page_number":46,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"f7edd99a-1157-49d4-8b75-643dc6918f42","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":46,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"b468150c-db47-4010-b085-e0adbc8724b7","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":46,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"9f7457ac-2e56-43ef-87b3-447473dfd901","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":46,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"3ba2f693-58a6-46f6-86c5-e46b890c7c64","block_type":"box","text":"When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the Fund to","page_number":46,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"5632b1aa-2464-4a00-a10f-1fc936c8ecb7","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":46,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"b0263d2c-e6cd-4b6d-a87b-90feae11915e","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":46,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"157e69b2-11c9-4482-a904-d90ce6e5187e","block_type":"box","text":"such loans, which could reduce Fund performance.","page_number":46,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"1dc4e1f1-8d43-40cd-8ccd-02bdac192641","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":46,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"1d562890-70d2-4f6c-b620-a34e3d595e97","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":46,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"a235b8b9-3724-4ec5-8be6-f788134eb358","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":46,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"1d3babda-e44a-44ba-a6db-d1374fad1bea","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":46,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"c9e018cc-1793-47a5-83da-f183958f45dd","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":46,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"f664d329-71af-4402-9f0d-30ca6496f149","block_type":"box","text":"Credit Linked Securities.","page_number":46,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"0eb3e86d-7cb1-4be6-ad8e-1af1256a40d8","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":46,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"69ed8c9b-8c9e-4b04-8a5c-73da9f1d431e","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":46,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"d77b81bc-f035-4c9f-a593-e08ac6e20f11","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":46,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"90340bff-e7e6-4052-9bb0-80116579c441","block_type":"box","text":"to provide exposure to certain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":46,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"12ed3320-ef7c-4983-a437-6406ef6426ba","block_type":"box","text":"cash management tool in order to gain exposure to a certain market and/or to remain fully invested when more","page_number":46,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"e67949ae-356e-4820-8bf2-35277598f1c8","block_type":"box","text":"traditional income producing securities are not available.","page_number":46,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"a781a342-8a31-46c8-be3d-7b90ad41ba24","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":46,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"7a0549de-fbd0-4882-a890-865e28e61bfe","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":46,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"312e470f-fb67-47fd-a3b8-9882bca13e80","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":46,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"38845890-4941-4146-9f54-847e3144243b","block_type":"box","text":"obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For","page_number":46,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"a0bf612d-f542-4dd1-ace0-53f05285a689","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":46,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"f0f498fa-e7c0-43dd-92ea-165e1b52c58d","block_type":"box","text":"II-8","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"778278e8-c742-4248-84fc-5b73455e199e","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b1ed4ee8-fffd-41de-a28a-82143fbc5adb","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":47,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"c74e521a-a875-4761-a9ea-a5e4a3cda1e3","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":47,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"de5deafb-39c4-4f77-a13c-28bba0c8fa50","block_type":"box","text":"the issuer would be obligated to pay the counterparty the par (or other agreed upon value) of the referenced debt","page_number":47,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"854e02b5-4e68-4cc1-b8bd-072f93849fd4","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":47,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"60db03c6-4df7-43fc-9640-3e764f995ab4","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":47,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"140c92c7-e8cb-40cf-b067-0c7215c4f2ac","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and","page_number":47,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"59bdb948-f096-4d03-a96e-9a5e41a684d2","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":47,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"641a025a-d09e-4245-a01e-ea2d687ee534","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":47,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"663290c3-940d-4216-b2eb-798c198ebf08","block_type":"box","text":"investments.","page_number":47,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"5fed255c-1fde-47da-9670-674e4ed29998","block_type":"box","text":"Debt Securities.","page_number":47,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"989a769b-3535-4b07-bd53-cc5b4b543cd2","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":47,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"51cab3b2-cfaa-4cac-9998-b4f22baf2871","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":47,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"4be56697-7232-4441-9f72-16bf311153fb","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":47,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"8d0dd251-5f74-4d48-8e89-4dfa834505ca","block_type":"box","text":"creditworthiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":47,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"012627d8-1aab-4a9c-968e-b4e374015e9e","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":47,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"0d7372c0-318a-47d1-8307-22811faf9b9c","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":47,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"aaa717c0-ab80-4ab0-bfae-5cc1b3450c67","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":47,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"7418014b-a811-47f8-a8cd-e2e97c94b2e4","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":47,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"97c6232a-abbd-45ef-9a19-07de1778f458","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":47,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"3e9cb391-f73b-4597-93cd-43d9a4606d6d","block_type":"box","text":"rates than will the market price of shorter-term debt securities.","page_number":47,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"6194f5dc-e55c-4423-aae3-929ef1ae8224","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended because of","page_number":47,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"00a4d0a8-5125-4e65-94db-88a3b60305eb","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":47,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"305f115d-fd03-48e3-bef0-63eff6f02594","block_type":"box","text":"these fixed-income securities, especially mortgage-related securities, making them more sensitive to changes in","page_number":47,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"3f536486-8b70-408e-87a8-1c73ab2b2449","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":47,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"4d0ecb7b-d346-431d-b64b-8d0781fbe8bd","block_type":"box","text":"lose value. This is known as extension risk.","page_number":47,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"9fe21d1f-45e1-4d1f-b7f4-af0aee06ef18","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":47,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"de9b48d6-6948-4ff7-b48d-237ffdbc13b3","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":47,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"503b68ce-c0b1-4b37-af8e-617a6c57f081","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shorter maturities. The Funds are not","page_number":47,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"c60e712f-220b-491a-9a71-574a114d56dd","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual portfolio securities, and the average","page_number":47,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"95b9506a-cb63-4541-8cb0-b6ca51ed9498","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":47,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"2ea41fdd-2a33-4c61-880e-4a5ae616f306","block_type":"box","text":"Floating and Variable Rate Securities","page_number":47,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"9d08044f-0aea-40ca-8b4b-53d505c47af6","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable coupon","page_number":47,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"481018f7-103f-4069-8e22-97b377d63964","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":47,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"a9df5b9c-201a-4fe0-9cbf-fbc44fc45559","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":47,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"7659ad57-ee44-4042-89aa-f57e9303fc41","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":47,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"2ec717ca-87db-4b9d-ae58-a1e61290ec10","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":47,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"b84e0002-dcc3-46f7-b793-65f54e7da737","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":47,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"7ac2136c-6f24-4d7f-a56f-a2166246cd59","block_type":"box","text":"market interest rates.","page_number":47,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"df7f5607-050d-4596-9435-d6cdee7d4ac8","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":47,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"7972a741-9a94-4e7e-9b70-3fafb244397e","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":47,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"def0ab9b-4fa0-4f3b-acb1-df630edf4895","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":47,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"a0b9db71-b974-499b-89ab-e2dc901b4a38","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":47,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"b0ee5744-803a-4efa-bf0c-287e728788d0","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as part of a semi-annual coupon.","page_number":47,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"8fdc8054-15b5-4de2-a093-06a576cb9ac0","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years, although it is","page_number":47,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"b97b0caf-5444-474f-88d2-63082273f9a1","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":47,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"61cd8e46-36a8-428b-a82b-6984c2d50cd7","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":47,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"f88eed4a-fb55-4f13-8906-0b22b4453166","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":47,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"04f4a791-c042-4824-b3c0-a4026c696871","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":47,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"0802b3c7-ae89-483c-a87d-1f2fff7753ff","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":47,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"56651b2b-8b29-4afd-9496-58e8c5100cfa","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":47,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"aed24dcc-4b8a-456a-a51e-fdf0262ff3e7","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":47,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"55a9f6e8-0e03-4e0a-a8c2-ccfe323d22f7","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":47,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"f17fa240-799f-46a1-8ad0-b9110dfa270c","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":47,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"4dbd710a-cdb0-4609-aedd-b5b110528a61","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":47,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"2ff8daa4-5c1e-42e3-ae28-5be5924720b3","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":47,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"07f8b5aa-8ffd-4231-b93f-2b92f090c271","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Certain Funds may also invest in other","page_number":47,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"e1daa9a2-65a4-456d-b0ac-02561c621a76","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":47,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"d19528d2-8a01-4265-b397-0ffb05a2e55c","block_type":"box","text":"II-9","page_number":47,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"10270a57-65c7-469a-a590-dbb47059cdb8","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"93b84a2f-e567-419a-a2fe-26a745061834","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":48,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"9b97277e-b4bf-46fa-aeff-74ca84320b0b","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":48,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"95002056-8ff1-482a-a172-cd7c540aee4b","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":48,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"f0af2ec1-d856-4afa-b07e-dad6f914ad8d","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":48,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"6cf939a8-740d-42c4-9e47-bae50ed8b8da","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":48,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"c69cb758-982c-44a2-894d-26128976e86f","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":48,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"eaa5ba14-8fc3-45d1-b82a-887f93c551d8","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":48,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"fd1c1c40-338b-4b10-ab58-35c12d1bf6be","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":48,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"d7d5162b-b282-4c98-9959-c4de4aa341d6","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":48,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"8f813edb-d772-4886-8c5b-3d863f0b4a50","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term increases in","page_number":48,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"2f50d214-2f40-46bf-b409-da12065ef3bc","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":48,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"b611ceb9-063f-4121-901c-d65be39fa8a5","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":48,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"4a342a80-e09a-40c0-af66-036725bb1536","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":48,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"cdac51a1-6ce7-4675-bb51-98f6f4e106aa","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":48,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"eb859ba8-7ff2-44af-978f-64ef6ea502e0","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":48,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"2e33bd6e-ec2d-4187-9a47-2d4b150816fc","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":48,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"20406e5f-c220-4779-ad8f-e0650870e1eb","block_type":"box","text":"food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":48,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"fb1ce5fa-6076-4276-9ea4-59d2b5989391","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":48,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"dd0f6cb0-3285-4405-9312-aa24d64fa308","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":48,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"d7722940-582b-41df-8617-bea91f504c21","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":48,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"8bff655c-4022-4186-98d0-8814fe230869","block_type":"box","text":"United States.","page_number":48,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"2c3c3438-3ca9-44a8-a12f-28bdbde07771","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":48,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"6f45f3f3-83d0-4f90-9943-7986f0fbc6be","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":48,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"978dc13a-02a6-4c06-8331-66bbefbc4612","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":48,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"139bf0c6-75d9-4ee5-a006-83e4fa6b16d3","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which are","page_number":48,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"0f1ccce6-69e5-4041-8111-46a48019af46","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":48,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"54b891a7-4c0e-4a30-870a-cd5773de16b7","block_type":"box","text":"Manager. Certain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":48,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"2bf3f918-b410-4895-ac55-cf93371c99d0","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":48,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"ae0760d7-f8a4-4cf2-be3e-d21cdd0d0f51","block_type":"box","text":"i.e.","page_number":48,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"ea3103b1-a5f8-4526-bcdb-1cd3badb3bf3","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":48,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"9f5eb4d8-d747-4464-8f8b-ddbc2644f3f8","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":48,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"1e701667-6d40-4d93-acdc-dc0a02066bfa","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":48,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"ff48fdaf-edd2-461a-a0c6-06531925006c","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":48,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"a066d243-09ad-4de2-9ba4-b1d7da1d382b","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":48,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"e1c91b23-bf4a-4044-9513-c7ad806bbe8e","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":48,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"b01818d4-e512-469e-afbd-607ac8de0313","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":48,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"b45285a6-ae06-4649-a75e-5b9f2409023a","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to investors as","page_number":48,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"48a70a39-1992-46cf-8dae-4ac56621a995","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":48,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"19a54354-6f4b-4722-bd85-5833f12f4b50","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and opportunity","page_number":48,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"eeccc101-3417-4d6e-801b-074f66c3151a","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":48,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"07b5bf4a-7639-4cb6-be62-7b08adc27db5","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":48,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"313d7824-b986-428d-9181-329ddea5430f","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":48,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"96525f45-a253-400e-8641-b78529279ed8","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":48,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"382de0a3-1775-4909-a883-64a572afab10","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":48,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"e1bf53fd-ce49-4f18-8c01-14f115d0e270","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":48,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"a8bed04c-2107-4fd1-9811-559eee291b00","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":48,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"166b74ee-40b2-4fa2-b381-c680d6bfc2b8","block_type":"box","text":"risk than higher rated securities.","page_number":48,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"11901dd1-6e28-48cb-9514-b50c5c37e74e","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":48,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"f475608c-bc92-43c0-b677-08614093df6e","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"65f6ea71-8481-4d3a-b892-437fc52c1a7d","block_type":"box","text":"Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to adverse changes","page_number":48,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"3cc399ad-9e72-4b7e-9367-f302f1a7b026","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":48,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"970c311b-8ad4-4461-9ea6-cd0057d87ebc","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":48,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"4489833b-9158-48ba-a532-b7f8b0c1060b","block_type":"box","text":"unavailability of additional financing.","page_number":48,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"f5c8ec48-8b05-4dd2-82e0-585502483d49","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"93acc8ab-931f-47c2-bd87-4d8bd0fce167","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":48,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"099a3f57-75e8-4afe-97a7-125f6f034bab","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":48,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"374c355b-575f-4542-a8a8-6ae33940019a","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":48,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"245582fc-6304-4989-84d2-8de6d59ab1bc","block_type":"box","text":"II-10","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fcac3030-ba60-4ccd-bcb9-cead6ed2afd7","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7b7b2b4a-f27d-4a65-b072-2e730faa7f5d","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":49,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"10b55dec-c36f-4bfe-a265-a7591109a371","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":49,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"57923b46-b6f5-4fb5-974b-2d89522e0eae","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"6134bb14-125a-4f16-ab32-e32f2324c38e","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":49,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"7738dee9-31ff-42af-b7f7-d1d74eb6691b","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":49,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"148b2176-6bc2-415b-a287-be55578155bd","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":49,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"d27de62b-4014-4a35-a9af-7ebd0fbc2981","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":49,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"57529d29-3919-455c-9247-c71383d81336","block_type":"box","text":"investors in higher rated securities.","page_number":49,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"c9a299d6-5fd8-4d0b-b0fc-8c0407ffb40b","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"6afdb3f1-9ff9-480f-8725-0888c9e8cce0","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":49,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"59d4d1a7-8f91-4fe1-a91e-4766e5211227","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":49,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"26ab505a-c14c-4f00-95bb-9aee8f02ed48","block_type":"box","text":"lower yields and may lose income.","page_number":49,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"cdedc9f9-28ac-445f-b2e9-2db6860f1a3b","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"1c543288-8a2a-4e8a-be13-fbd467ff5513","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":49,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"45ebae65-8c54-43b7-89b8-201d12463bda","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":49,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"b6520ec6-3131-43ec-b457-656b2a24dccd","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"faa25389-0c45-4d7c-a16a-e62c1cddd2c3","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":49,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"a51ec114-17c6-4047-a751-5c5981dfa740","block_type":"box","text":"Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":49,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"fd6525a1-1a3f-48c2-b5ed-e1f803f37979","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":49,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"da94c759-3f7e-4577-a957-17b61765191d","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":49,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"a399b891-7623-43e1-bb63-4a4ad809389b","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":49,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"3d77b2e6-98a1-4d82-b83d-332584873735","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing certain of a Fund’s portfolio securities","page_number":49,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"70481079-4b91-47de-a22a-daa8510a5e61","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":49,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"f3783927-1acc-4eff-9bbf-ec605119cf04","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"61a6b0d2-891c-4703-b51d-0ff0633e90f7","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":49,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"68e3997d-9fd2-4056-ba22-e54d3d18f655","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":49,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"94576f63-d2e6-4ad3-9d14-9720ba54bed8","block_type":"box","text":"participants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":49,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"bcf3cfb9-c00c-4e46-9481-316b81610483","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":49,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"c70be4aa-f28d-4d84-9d25-7239c20607f8","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":49,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"b204558f-d013-4c98-b29d-c2aabbb830bb","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a particular issuer. Under","page_number":49,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"3aed5f1c-1d9b-48ec-b3be-09dfa137d3f0","block_type":"box","text":"certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities","page_number":49,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"546e0144-5be1-4965-bb0a-2ab5335ab080","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":49,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"1fd5d38e-6125-4a1e-a614-9640a05e9306","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the particular","page_number":49,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"b7efdda4-98cf-4a2e-a741-c04b044080a4","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":49,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"0020f06a-b616-4b11-b4ef-0625bee061e5","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":49,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"06bab50e-5b24-43f3-9669-8062d15ca2a1","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":49,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"a2e2263d-1478-403c-80eb-4140f5c3b1f8","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":49,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"40e58882-b771-4299-b687-4cf303cc356d","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more important","page_number":49,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"7c6f16ff-b635-4b6b-af1c-93974e54aeea","block_type":"box","text":"role in determining such valuations.","page_number":49,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"09e2e06c-307d-450b-a814-cc810620a558","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"6d0b5e04-e5a5-4c43-a34d-3f4433e438d9","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":49,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"eec89f1d-93af-4679-8e58-f6fdcb289b11","block_type":"box","text":"a defaulting issuer.","page_number":49,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"809b9540-62ca-4e40-a132-25a9a9dabdc9","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"ad4ffeed-415e-4660-9e50-f06b88984c82","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":49,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"4d2d91b9-1431-4adb-979b-3840e3fdae1e","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":49,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"6d4a920a-b568-4666-a738-9049a76b8bb9","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":49,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"22282845-1334-440d-8dcd-1a9250ccb2b7","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":49,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"0b42d2b4-f9fe-4552-a52c-540e16b5fddd","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":49,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"1c1e0bd1-a0cd-4c85-966e-1c3b649fb672","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":49,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"d8aca329-f379-44b7-89f6-ffca3cf5d242","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by certain","page_number":49,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"997752f8-4885-4d1c-b2b8-896adec60a37","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":49,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"220d6ba8-9957-4ba0-920a-39fcf275cdcf","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"25d143c5-2ae7-40a5-a61b-97576d8191fe","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":49,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"09ccebc4-0d8c-450f-8d2f-69fb2804588b","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":49,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"f37d7ac8-d1de-4f0c-a350-d44725d90f0a","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":49,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"dd068472-8feb-495f-a6ec-c0b091fd6e7f","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser performs its own analysis of the","page_number":49,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"169c2fbb-dbc2-4497-9c1e-bb151a0a28b0","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s performance may","page_number":49,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"45cceca3-4e74-46c1-ac2f-777f7cbf12d9","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":49,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"a0176d97-7c47-4776-b61d-608379e11f4a","block_type":"box","text":"higher-rated securities.","page_number":49,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"914e26c5-37ad-40be-b9c7-a1a4e186fa85","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":49,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"450db11c-e804-4ae9-9b03-981076100fb9","block_type":"box","text":"relating to the creditworthiness of issuers, the ratings and performance of the securities, the protections afforded","page_number":49,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"f101b9c3-3854-4058-af69-19a3e945896f","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":49,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"0ff95b4f-5e68-4f11-a200-1f2dffe4acac","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":49,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"6c734db8-2fd6-45f3-9865-f5b18126d4f9","block_type":"box","text":"II-11","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"936d5c1f-0dbe-49fe-96bb-0f990c9be7c8","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d00fff97-5d84-43ac-80f5-05ed9ee2e29c","block_type":"box","text":"well as in an effort to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":50,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"73706a28-adc4-4b60-b140-e86686ebbb01","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":50,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"61161378-effe-40fa-a9a3-5782cfcd6ca0","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":50,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"25bdcb59-c042-458e-b8a0-90188e3b4512","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":50,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"99f06f3a-58e7-44ae-ad72-7fee6fe10d11","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":50,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"d81cb64d-5239-4749-8976-10e11173d1be","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":50,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"705ec308-6c6a-413e-936e-4cadefff96b7","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":50,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"8ff9c8c0-b485-4e2b-98f3-80c60466321b","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":50,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"eabf8af9-6da7-4793-a06b-78109584f29d","block_type":"box","text":"Mezzanine Investments.","page_number":50,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"0e3ca654-2315-4933-b304-3fa370ddd998","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a specific","page_number":50,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"bd922684-4727-4882-b835-0e4369146454","block_type":"box","text":"credit quality, may invest in certain high yield securities known as mezzanine investments, which are subordinated","page_number":50,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"a2a3eba7-5f25-40bf-8ac8-6c30d84a180e","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":50,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"62be2fd6-307b-4ae6-850c-2f7b5bdeb526","block_type":"box","text":"e.g.","page_number":50,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"ac840792-5499-4304-934a-ddc946427174","block_type":"box","text":", with","page_number":50,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"8c36f084-3e8e-43e4-acce-3f85fc153c55","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":50,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"12d203ce-143b-435b-b956-8dc18b2dfeae","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":50,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"d502fd84-b84f-49fe-abc5-673a793fca79","block_type":"box","text":"life is significantly shorter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":50,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"71dc0d5f-7f49-43fc-930a-8cd250067f1f","block_type":"box","text":"other obligations of the issuer.","page_number":50,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"9ebb71d3-c46e-44da-ac72-7b1fa4544d35","block_type":"box","text":"Pay-in-kind Bonds.","page_number":50,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"4d9a68d2-dc12-4701-84d4-782cee07aab1","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":50,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"ba670727-8c44-4cef-9588-8c75c6f40fb6","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":50,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"94725bd5-44f9-41e8-ba91-29f3586f43cd","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":50,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"72e563b6-ffb4-4053-87f7-f4cbc00cb023","block_type":"box","text":"unless a portion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":50,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"b789fcfc-b1c3-4c20-be64-752a16c01a44","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":50,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"7cff8e81-2847-47fa-bdaa-8a7db6d5000b","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":50,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"ef89e1f6-1d84-4667-bd01-a9f039473045","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":50,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"e03ec955-f61b-4bd8-916b-c5f1b7ee2db4","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":50,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"3dfcdd43-dcd3-414e-a3c9-54788bdfb72e","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":50,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"21dc2472-1771-4b31-ac87-88430cec77a6","block_type":"box","text":"securities and may have to dispose of portfolio securities under disadvantageous circumstances in order to generate","page_number":50,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"c8384883-4c71-4c45-b2c6-6e632dfea791","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":50,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"34371d4e-faa6-47b6-86a3-0fe2eaddde85","block_type":"box","text":"Supranational Entities.","page_number":50,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"07acd80a-2289-498a-a55a-6354040eca42","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":50,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"e2ede081-e207-4fd4-96a8-79c771d438ee","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":50,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"15363c6a-c8e3-4fb0-a952-401c37b3362b","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":50,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"70f702ae-6da7-4bda-a404-969e7ef09b61","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":50,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"8e075180-e69a-4221-9a88-51d559f23fb8","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":50,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"cb3df5bc-0e16-4388-9738-71206f0fc2dc","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":50,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"8d410b26-26d8-450e-bf37-04615c305fdf","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":50,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"c347734f-03ca-491d-8756-6a142db348f5","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":50,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"7d333cb0-cc04-4ee6-bdf9-5ae086b88c2f","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":50,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"61969a89-ebb1-4b61-a43f-f61b5aec2af3","block_type":"box","text":"Certain Funds may invest in the securities of foreign issuers in","page_number":50,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"9b5a8a03-1cf0-43c1-aa52-f636329f3485","block_type":"box","text":"the form of Depositary Receipts or other securities convertible into securities of foreign issuers. Depositary Receipts","page_number":50,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"3a76ac6d-fa94-4456-8582-654adfaa1c4e","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":50,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"67e3d2b5-a82b-408f-8f72-f809faf72af5","block_type":"box","text":"converted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":50,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"b15a2428-3767-4777-9293-82f750101ebd","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":50,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"eb9698e1-55e4-432e-9a3b-152f2556ca68","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":50,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"8d624ab9-4f29-43b2-9a39-9e152a1b098e","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":50,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"376edd08-fd40-4090-b5f6-4e6dfdbc2369","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":50,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"e5aa1df0-5cf6-4a12-9121-41440c82d1e6","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":50,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"daeb1ada-b64f-4759-800a-afe7b45a0eb6","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":50,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"286139f3-0a6b-4c5f-b9cb-ee7a3ffb6ec0","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":50,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"7e18294e-97e1-4ef5-8866-1f081a73a301","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank","page_number":50,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"c1571791-2910-460e-a794-be5b9c0c9944","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":50,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"baefc3f3-8a39-4be5-add6-7c2004fe5a03","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":50,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"14855db2-1b8e-47af-81d7-dee2868b23a1","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":50,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"517cc6bf-74b0-4c27-8a0a-afb9aa84979b","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":50,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"ace8d508-5fe3-4bb6-a239-e7fba35e9945","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":50,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"c452fdc8-0959-4795-972a-b6ffb8efdcc5","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":50,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"e12cfed8-be34-4651-b209-906a664999eb","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":50,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"c4ca2c65-c5af-4396-b21d-ec6b11a2c1d8","block_type":"box","text":"into which they may be converted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":50,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"a12bfc02-92dd-4ca8-bb9c-d90fcf8098b1","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":50,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"da585e24-0e28-4f07-9254-974076bcd474","block_type":"box","text":"II-12","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"344e9354-a2d4-4f7b-9739-67e510a7512a","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6483aeac-967f-4ef8-a5ad-2e92415c7a54","block_type":"box","text":"Derivatives.","page_number":51,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"6d8b61fe-a7ec-46d2-b742-0a7d6e3e0b79","block_type":"box","text":"General.","page_number":51,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"b3eb16a3-b831-4dc7-b883-bfab6e2eb48b","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":51,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"a4c8b45b-dfe0-477c-8d96-921edfc92174","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":51,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"4150bf03-efb4-420a-813e-c946aebae4ee","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":51,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"f63fd9f5-696c-4c6e-bea4-02f796232c60","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":51,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"444a73f7-476b-459b-94d3-50526d3cde71","block_type":"box","text":"efficiently than with other transactions. Certain Funds may use derivatives to maintain a portion of their long and","page_number":51,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"44839392-8033-44ef-b649-eb61a2b7cbcc","block_type":"box","text":"short positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":51,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"72288f9d-d1d7-486e-85a2-1ab481eeba0f","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":51,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"3e5f3e16-18b6-4a08-aec8-d6a0f1587f26","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":51,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"a4796b0a-bf10-4ee9-8d28-c4062e9aa843","block_type":"box","text":"i.e.","page_number":51,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"5eb45625-8ef4-429a-ab7c-62733d836a71","block_type":"box","text":", the payment","page_number":51,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"96c02059-b078-4b1d-bcb4-5ef02b4c1e76","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":51,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"defe4919-c6b4-4d57-8eab-cfde63799994","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":51,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"1b5bcb8c-be74-4234-b521-cb0d0b9271e0","block_type":"box","text":"Hedging.","page_number":51,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"8624c4a6-5d9b-4bbf-887c-109a6333412c","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":51,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"ffe13492-b338-441d-8117-f14e41d3b1e3","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":51,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"89936281-d2b0-4bd6-8475-d6f81ce5d36e","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":51,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"72f46afd-7cd9-4787-b67d-c3034ab0e8d0","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":51,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"a016b757-b583-4d0b-82b9-90ef975b6ce6","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":51,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"4ec0b09a-b42d-4bf7-9300-09ad83fadb5b","block_type":"box","text":"correlation risk,","page_number":51,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"c770afaa-709c-4c02-b78a-e51c2c0de5e0","block_type":"box","text":"i.e.","page_number":51,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"86a2ae0f-7813-4cdd-8528-26e6f509d939","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":51,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"2e9dcc30-03ff-494b-aacd-7c40daa94698","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":51,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"55a3bb22-404d-4747-88a7-8462c09a3146","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":51,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"34caec7d-b0af-4a7e-b85d-e814112c50f4","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":51,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"3919d398-c9b4-4c7b-a200-08dfdf05bf48","block_type":"box","text":"Speculation.","page_number":51,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"1d12a8e7-192a-432d-8008-6f4e67ab53fa","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":51,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"96b95042-c608-4694-af9a-87a67d05d9d6","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":51,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"720b82b7-1560-464c-ba10-3c3917359025","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":51,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"cd35e361-bfdd-4a3b-a383-92134e72bc45","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":51,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"7ef5cf25-6fa0-4ce9-a58b-9df1b292f013","block_type":"box","text":"in certain cases may be unlimited.","page_number":51,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"89e0f4ba-1ef2-4ac7-97f6-4c26ec1fe5a2","block_type":"box","text":"Regulation of Derivatives.","page_number":51,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"8ef35479-87f4-4e59-bcf2-b5d51ff2b069","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":51,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"b7c1a325-3461-4d4b-aac1-cfab3bc02450","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":51,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"a43ec5d2-fbac-4abd-8a1a-0be94ce47ed0","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions","page_number":51,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"84c2bb7e-3d7f-4a01-bcb7-fda9dcb97c2c","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":51,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"18b12183-d5f4-455e-9146-4c8705575f40","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":51,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"65211565-4307-4ac7-9854-9b0e7045c019","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":51,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"9df535df-c1b3-4fb6-ba2d-4c181fda5d99","block_type":"box","text":"coverage”).","page_number":51,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"f7841585-2755-418c-a21f-07393d2f8e94","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":51,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"0d75a121-ae06-4efc-aa65-60697cccf581","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":51,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"8945935f-e1a5-4c80-b8be-14551e7f4d57","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":51,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"fb8d2e22-0c39-4493-aa11-f8279eca3757","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":51,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"4f87d2b1-e680-488b-b344-df53742439ea","block_type":"box","text":"settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar","page_number":51,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"b4eda4d8-d96f-4b53-bb57-2b840f1f4722","block_type":"box","text":"financing transactions (","page_number":51,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"9e66e6b1-d00c-401d-8dc6-02d4f9b2e4de","block_type":"box","text":"e.g.","page_number":51,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"fffa46f9-4b91-4e90-936b-33e5afc28b5e","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":51,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"a4f0fc05-c32d-48e6-a347-6c6093e491ca","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":51,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"49036d49-19f0-4062-8a30-d31b1d57aa61","block_type":"box","text":"securities (","page_number":51,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"de371721-986e-4781-843b-952841cbb17c","block_type":"box","text":"e.g.","page_number":51,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"8b4986c8-5828-40cb-a6c8-037870462ba2","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":51,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"0014efa9-1d1f-43d3-9046-367477343e6a","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":51,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"aeab68dd-8a1d-49c2-b328-6a9b8330e0db","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":51,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"e6096ee6-60cf-4fd0-9f4b-9fe92a7eb3e3","block_type":"box","text":"Commitments”).","page_number":51,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"06d5746b-161d-41c0-8797-5121fdcfd068","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":51,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"cc8a0777-7655-4b73-91be-12cf2415b891","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":51,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"b7d5f02b-5bc7-4dba-9769-d8a79a633459","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":51,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"2440d489-a312-4707-8451-1086cee78d70","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":51,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"10d8f66e-e051-4526-8114-55a70364bfa2","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":51,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"b765e904-2925-4c29-ade6-f7cc9eb5cf86","block_type":"box","text":"and periodically reviews the DRMP and reports to the Fund’s Board.","page_number":51,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"b233a2ae-057d-412f-a4f7-4bdbb97445cc","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and certain other requirements if a Fund’s","page_number":51,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"1e465da9-8cd9-41d0-8883-1742793a99a6","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":51,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"bb26e038-4572-4b0a-8b13-992a52c460e6","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":51,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"4bf91ad5-18d4-40aa-9dcd-5a93137a88df","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":51,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"00539f69-36fe-48e5-9aa7-509b6c0ca0e2","block_type":"box","text":"II-13","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f5b47561-f28a-4ce3-9f0f-573c79784c26","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"429f640c-3030-48e8-b5bd-2e12d31f622b","block_type":"box","text":"Dodd-Frank Regulations.","page_number":52,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"3acc200b-023f-4ed6-a6c8-07c4aab3f8a4","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":52,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"40fa8bad-f2b4-4cf3-a2cd-c73d27e8db1c","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":52,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"317e7220-277c-4bdc-8244-9a91b70d4eca","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":52,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"8e4d2fe5-99b0-453c-a26c-cf028e87a64c","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, certain regulations have only recently become effective and","page_number":52,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"7754a531-2e41-48fa-8339-a6f18bb8a01f","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncertain.","page_number":52,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"08323b3c-169f-4da1-a2c0-f5018e960ec7","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":52,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"d9c8720b-d140-420f-a885-3465a0cf3819","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":52,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"0edbc839-74d6-4b25-ac32-18e7c318846c","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, reporting, transparency, position limits,","page_number":52,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"6b6d0486-1be9-42c0-8f51-2fea1a46bc88","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":52,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"7c375386-5be9-4ab9-94d4-49a2cfe13465","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":52,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"7cbd1fa4-dcf2-4c57-bc5a-dde1ecd34569","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed in","page_number":52,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"bc49ee24-dfe8-4d16-b089-b5f89a0afce3","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":52,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"30ed82ce-0233-4c7d-bea1-9db243a20b06","block_type":"box","text":"similar requirements on certain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":52,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"fa9c9e10-8bde-446f-ac74-d22324533a77","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":52,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"5371fe16-09eb-41dc-ba64-5652edae1c4c","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":52,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"e99493a7-7da8-4b08-919b-f983065e23ed","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":52,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"04b219d4-5f4f-4da3-8739-ef8cbfd15165","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":52,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"caae4cca-fadf-4149-b17d-8df53d4eb303","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":52,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"c3584f57-8b4b-4716-8b9f-afb40a291ace","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":52,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"77356e21-44a2-4f2d-940f-292850f84345","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering certain investment strategies impossible or","page_number":52,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"3ff84c6a-2697-4de5-9e46-a4984905600d","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":52,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"3f197f24-9abd-45ca-9a1a-3ad67619b096","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":52,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"c623039c-7090-40ed-a24b-6929d82eac38","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":52,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"6db91b16-44b0-42ae-b5cf-7405b8a7ecb5","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":52,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"3ff13066-90a8-4884-9b8e-746da330738b","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":52,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"3a2e859a-5192-4035-b587-7bebe4a95e21","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":52,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"bce06908-f220-44e2-afc0-68000cfa50fd","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":52,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"0971b9a8-5c8d-4f10-86b0-5a80a91f0c42","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":52,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"b6d2e67b-d906-4cb1-ba30-c69729c98d09","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":52,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"ce17a936-092d-4851-9792-3dd02fa2b7ac","block_type":"box","text":"member.","page_number":52,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"b4068d46-b56d-48b9-a222-a56e9c10ce9d","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":52,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"09072ecb-d4c6-490d-bc20-4e7fface59fb","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":52,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"73ed4b14-087a-467a-af16-c29223013345","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":52,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"bd17ff12-d590-408a-a47d-875b3bf43ce1","block_type":"box","text":"margin in excess of clearinghouse requirements, and certain clearinghouses may share a portion of their earnings on","page_number":52,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"90907808-826a-4029-bb6e-e178b96c478d","block_type":"box","text":"initial margin with their clearing members, some portion of the initial margin that is passed through to the","page_number":52,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"17a3574e-e1b5-4621-a131-447cf29b0d7d","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":52,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"61d32fd6-232c-40f8-b417-f77f13bd8822","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":52,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"a37d5dca-66ca-42f3-9311-8340a21f5f10","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":52,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"105e03b3-36e7-4b96-950c-8b166095e975","block_type":"box","text":"provide for non-cleared OTC derivatives. Furthermore, customers, including the Funds, are subject to additional fees","page_number":52,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"2940a289-c531-4f85-ad47-543c0fb1f359","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":52,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"83a9f296-f408-4f28-9116-71a317a5c92e","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":52,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"6c4123dd-a1ad-4c65-a855-96f040c81f38","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":52,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"2ca3f2f1-36bf-4fc2-beb6-1afcc10f1896","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":52,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"09ca61de-36a8-4beb-aae7-b409f0b53ad7","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":52,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"fe90bc11-9a21-403c-a5a2-3295df1b401c","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than certain","page_number":52,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"0ca27bff-8d17-4ffd-8efb-85a4803ae3eb","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":52,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"39ad4f89-7d56-46c7-9e93-af52601001ef","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":52,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"be18234a-2096-43a2-8a7a-20faea606887","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":52,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"f9785225-24dc-49af-985a-425854bc42b6","block_type":"box","text":"group of persons acting in concert, may hold or control in particular contracts. In addition, U.S. federal position limits","page_number":52,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"9ed4a060-4ed0-41f4-9f1f-4fe213ae52b1","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on certain agricultural, metals and energy","page_number":52,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"acc8f6cd-a6bd-44d8-8c55-16595682ff9f","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":52,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"fb8d1d97-26e3-40eb-84d8-39ed9ef7a064","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":52,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"1d94dfce-f91d-4dcb-9b97-78947da8776b","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":52,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"76a7deff-62aa-4b8b-b2e2-0bdc22d9d633","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":52,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"b2e10319-363b-4d5c-a9fe-69582799251b","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":52,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"3517a299-91a1-4c58-a7b7-8f44b5ed9ff5","block_type":"box","text":"II-14","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d4e054c9-7504-45de-bf9c-7712db667597","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7ba789cd-fa82-49ed-861e-66f51c34dda6","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":53,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"7ab17c99-fbb9-4781-8063-43ce333bf8f2","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":53,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"523dcf03-f030-40a7-8a9c-23bf2e8a341f","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":53,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"74c7fa82-eb5e-4527-bee7-8b412fda951c","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":53,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"000249f3-5f8b-44fa-bd5f-e8440ca93c83","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":53,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"7f183152-e6e6-4978-bda0-3a9a7ed9bd2c","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":53,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"1323c02f-ed73-4e3f-b8a3-1fbbc2e2a93f","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":53,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"9cd75205-fbd7-4977-832b-0b91351455f2","block_type":"box","text":"participating in, or otherwise adversely impact the liquidity of, participating in the commodities markets. For example,","page_number":53,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"3c854fe5-385b-4e8b-a86c-73997aacf314","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced certain","page_number":53,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"04064b40-9641-4df2-b302-473ac1ca417f","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":53,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"693ef21d-3b60-49c4-affa-920f2e29f6c4","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":53,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"938c8fe2-6365-48fb-a269-60a804435734","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping","page_number":53,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"e1591bb5-678f-4c2c-8556-925588ee3761","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":53,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"96fe65ff-728f-4ee1-a86c-afc02afe1ca8","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":53,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"e213e5ae-a5df-40fe-93cb-3bd80432925a","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":53,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"a27d6b50-4248-4b7b-b686-6449a7859578","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":53,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"a5e8c7dd-fd2a-4386-ada8-4f75f2197c2a","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II requires European Union","page_number":53,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"2a2934b4-bbc6-4e5d-9fe5-6b85aa4d3dad","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":53,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"a4ef5c64-e77a-4930-8268-38a458ee02a2","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":53,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"b9dc0c0a-521b-4ac3-9a58-33e70ae16dad","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":53,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"e5084923-2122-4fd9-b123-98e889684f40","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain prudentially","page_number":53,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"f4e204b6-e6c3-4e5e-aab4-9981d72cd8d3","block_type":"box","text":"regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":53,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"8ba5a099-fa24-4595-8005-fbe18c2e98f7","block_type":"box","text":"derivatives contracts and certain other financial contracts, terms that delay or restrict the rights of counterparties","page_number":53,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"90c06ecc-618f-4632-9731-eb810cb43a67","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":53,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"8c1f3b48-5f51-4dd1-986a-25d0a3dabbe6","block_type":"box","text":"transfers of credit support in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":53,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"9770ccea-e21c-4c48-a87c-d065a0094c82","block_type":"box","text":"certain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":53,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"35d95744-5725-48f3-95ef-72beca8155c2","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterparties located in those jurisdictions. In particular, in the United","page_number":53,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"cc110f90-6d05-404f-a626-c3a3e77a5163","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or convert to equity the liabilities","page_number":53,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"a38bb7d4-91c4-4c02-a093-697a95472a77","block_type":"box","text":"to a Fund of a counterparty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":53,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"862cb3b4-6df0-4bc6-8d98-5e9a45920006","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":53,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"f180a529-aab2-4e60-9983-e4a20860782f","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":53,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"56c0b4c6-6539-47e4-8f9a-416d11d75f13","block_type":"box","text":"collateral received under such contracts.","page_number":53,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"21604a24-7d75-4bfb-8887-4d15918fac64","block_type":"box","text":"Risk Factors in Derivatives.","page_number":53,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"1a0ff814-e7d1-4698-8ad8-a85ddd3edef8","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":53,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"31919bf6-9934-4286-af45-8232ef556776","block_type":"box","text":"Correlation Risk","page_number":53,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"4cc02eb7-d182-4430-ac43-709e6e73c080","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":53,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"5e373553-e1ab-4161-b5d0-671cd2c65e7d","block_type":"box","text":"the portfolio holdings that are being hedged or of the particular market or security to which the Fund seeks exposure.","page_number":53,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"95218f0c-c783-4d94-8d84-9c0d6b453865","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":53,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"41c5ff36-66a3-4b91-88c4-f6e470da5193","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":53,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"6a04c25d-f4d5-4196-89f3-523afe7365b1","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":53,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"80e87ed6-c6aa-4149-9a82-d55b0efc26c3","block_type":"box","text":"Counterpar ty Risk","page_number":53,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"259e1b34-f900-4f9a-9789-11d7d364eb6c","block_type":"box","text":"— the risk that a derivatives transaction counterparty will be unable or unwilling to make","page_number":53,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"92026a4d-927d-485a-bff7-0edf6dd3cf44","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":53,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"48b9b3f4-8f30-4926-93f8-6443146a0c35","block_type":"box","text":"a counterparty. In particular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":53,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"89b6f7fa-bd98-4b36-92db-0f8041cab69e","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":53,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"f19c926f-af38-4090-a561-bbfab73b8a74","block_type":"box","text":"instruments or has deposited collateral with its counterparties the Fund is at risk that its counterparties will become","page_number":53,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"1e716c32-ac22-4dce-8053-05538638ca0a","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":53,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"0c4b482d-7e7c-41a4-81d8-35f9f2c6c547","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or that have","page_number":53,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"f4adffea-cebe-44d6-b31b-933a0f014c6e","block_type":"box","text":"provided the Fund with a third-party guaranty or other credit support. When a Fund enters into a derivatives","page_number":53,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"d44971b6-7c1f-4159-abeb-3f19504ad3dd","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":53,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"c79a797d-a8ff-4517-9742-73198697eff3","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market participants","page_number":53,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"bfa19a39-38b8-4025-9f63-aa3cc8400169","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":53,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"84fa3356-6107-4e36-aca9-fa08cbbed77d","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":53,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"264fe915-d385-4df4-bf8c-d5021702c527","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":53,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"b027a3fa-802a-4669-aac6-083b730fa413","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":53,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"91fe83a6-e5c6-4778-be49-6ecb323a6a56","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":53,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"c3078fe6-1941-491b-9478-1ad18892288d","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":53,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"7d9f0adc-edc2-40a2-a698-00610f5564df","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":53,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"c56320d3-2c9a-44e0-8c0b-bebc4a0209b6","block_type":"box","text":"II-15","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"242731bc-d461-4fef-899b-a8e1e5f55ba7","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3c756b9e-2046-46db-bed8-c26963186f8c","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":54,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"8691ff6f-5382-4a16-8a17-7b87364b38ef","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":54,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"603d2657-c70d-40a1-9d8a-30c7bd22b593","block_type":"box","text":"by the clearing member.","page_number":54,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"e8eb4cd1-f452-4b2d-b5cb-406d6abfe8d6","block_type":"box","text":"Credit Risk","page_number":54,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"ed759187-cf16-406d-a267-da613837b3e9","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":54,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"c4dead72-a175-4097-b7fb-c03773066a0d","block_type":"box","text":"honor its financial obligations.","page_number":54,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"b5fc12f8-5225-4afa-af70-f34b689f6d70","block_type":"box","text":"Currency Risk","page_number":54,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"fb47f2f4-54a3-41c2-bae8-26ee6ca498c9","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":54,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"085d8c3c-b04f-476f-9973-b0b290f9f9c8","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":54,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"25c66f1e-42e5-42d8-addb-cbac03082453","block_type":"box","text":"Illiquidity Risk","page_number":54,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"8b8678eb-a021-43bf-b17c-5956df78ed8e","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at the time","page_number":54,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"afe791ea-26ae-42b6-9534-d233f06f6fbe","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":54,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"290e4b06-1cbd-4366-bb8c-eb95fb83b9a2","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":54,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"59bc41dd-ffaf-46e8-aed5-53362f35063f","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":54,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"d6c06f0d-6fec-4973-a640-ab6630c3ced8","block_type":"box","text":"incurring substantial losses (if at all). Certain OTC derivatives, including swaps and OTC options, involve substantial","page_number":54,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"788c0097-428d-4ea4-acbc-bbfd63e4c994","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascertain a market value for such derivatives. A","page_number":54,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"83dc119d-c9e1-404b-aca1-9238e7692ef2","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":54,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"beccb430-9bc1-4df9-bba1-f21688ca5644","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":54,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"3bf43018-609d-4ab7-8f2e-e53b44ab1abf","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":54,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"6966f2e5-9bda-4ed4-81ff-75373e79a5a7","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":54,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"c343b6b0-1d56-4711-b09e-26ed34fbe1bf","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":54,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"7a46bb1b-c862-498a-a25a-d9137ffe9ce8","block_type":"box","text":"the participation of speculators, government regulation and intervention, and technical and operational or system","page_number":54,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"af689a68-67ef-4ebc-b871-3e598af56918","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":54,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"3b0b722c-ab9d-49ab-bd6e-06a111bf176f","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":54,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"7573e4fe-e933-490f-875c-9541c9d555f2","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":54,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"82387e18-27b9-4712-89be-f9e8d5a40378","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":54,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"dabc0c9c-703c-4f9f-915b-1b9859bfc431","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":54,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"6641a769-c507-48a7-a8b8-50ec69106e11","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":54,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"e9cd460b-defe-4c3e-ada1-787863b145ce","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":54,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"02d1cdcc-3b37-44f6-a04b-1aa421f4e277","block_type":"box","text":"insufficient cash, it may have to sell portfolio securities to meet daily variation margin requirements at a time when it","page_number":54,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"64808d3d-6987-455e-8ca5-f1ee15f84222","block_type":"box","text":"may be disadvantageous to do so.","page_number":54,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"9b4a3c87-1242-485e-b359-66bb6da3ed77","block_type":"box","text":"Index Risk","page_number":54,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"f9cd0652-7c6d-42c8-bb97-96ed0e7ef052","block_type":"box","text":"— if the derivative is linked to the performance of an index, it will be subject to the risks associated","page_number":54,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"f01248dc-6c66-461c-9d28-8666273c26e8","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":54,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"73e0cb68-307e-4472-84c7-8164f72099f9","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":54,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"0b9072b5-f712-4380-8aec-92f6d2f948b3","block_type":"box","text":"Legal Risk","page_number":54,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"5fa0d172-3db8-42e1-b0b1-d12b3eb2149a","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality","page_number":54,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"ff9a086f-0a7d-47a6-ade4-56d9c881c277","block_type":"box","text":"or enforceability of a contract.","page_number":54,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"304b0eeb-5ab9-4584-a435-a21221db75d9","block_type":"box","text":"Leverage Risk","page_number":54,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"f58005a6-25ec-4422-8aae-df40c0907e43","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":54,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"4581ffc9-1149-406c-beee-0804f9e28ab4","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":54,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"7bf83f4b-4460-49cc-a945-c0866d737e48","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":54,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"f417e045-483b-4c98-b0ac-9c1bdcd2ed0d","block_type":"box","text":"Market Risk","page_number":54,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"14d49db9-380c-4fe3-a0bb-78285d905ec5","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":54,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"44a1198f-a61c-449c-8f76-7f3f30be0d68","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":54,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"f197e5a8-73f7-4e2b-ac3b-ac52ba340cdd","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":54,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"628895a6-1606-4299-bcab-89b75aefed7e","block_type":"box","text":"affected.","page_number":54,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"7ba47328-5717-49f6-8257-e204a73ac9d5","block_type":"box","text":"Operational Risk","page_number":54,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"0248fe4c-ca16-4c0f-a93c-659570cb9b3e","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":54,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"0335cf8e-849e-4012-8f75-ff96f2b52f81","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":54,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"74f9bbf2-35ac-4e59-88cd-c235fcf023bf","block_type":"box","text":"Valuation Risk","page_number":54,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"c11c4344-1699-4779-bd67-5d1917433b35","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":54,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"5e555eb8-cea6-4a49-93bd-e9d27ee07200","block_type":"box","text":"possible especially in times of market distress, since many market participants may be reluctant to purchase","page_number":54,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"d76014cc-d84c-40a5-8892-10075d1a3ac2","block_type":"box","text":"complex instruments or quote prices for them.","page_number":54,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"495df71a-1140-4a80-bbab-4fea65b5b541","block_type":"box","text":"Volatility Risk","page_number":54,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"ff2a8173-e151-4384-bf2a-723594e6abba","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time period.","page_number":54,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"5fe50175-59e3-4a19-967e-ad62fef1984a","block_type":"box","text":"Types of Derivatives Transactions.","page_number":54,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"6f74d441-d329-4a5d-88d7-ae5445cb36b2","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":54,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"ca800e93-1499-4f20-bbfa-16c16019c9a5","block_type":"box","text":"including the following:","page_number":54,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"ffa07f6f-4450-41cb-9837-27898b439045","block_type":"box","text":"Futures.","page_number":54,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"77f78f27-fe78-495f-9085-f2ebc4d1a91d","block_type":"box","text":"II-16","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0955ad4e-b205-47e2-b765-53f0c0b83a76","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f7536468-1386-4ca1-be16-2d03c812b418","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":55,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"4f831138-8287-4da0-a921-d5f48fa6bb8b","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":55,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"93530beb-bd99-401b-a38a-41a1c284cd43","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":55,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"f68336d8-32dd-47ac-8fbe-2d7f2eb68cf1","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":55,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"fa2ecbc1-ed0e-4389-9ffd-b46d77bf1c7c","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":55,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"f1f56b29-ea43-4561-866a-4f003406b699","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":55,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"8bdd3fe3-9ab0-40d8-8331-f813ccd0d0f1","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":55,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"0dd9eaf9-c548-423b-903e-43fcceccbd45","block_type":"box","text":"market value of portfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":55,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"4cec1c77-927b-45c8-b663-cf7f45077d56","block_type":"box","text":"portfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":55,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"021b267f-4ffc-490f-84ee-5100962b0e0f","block_type":"box","text":"the futures position and a lower return on the portfolio holdings than would have been realized without the purchase","page_number":55,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"2bc54349-b7a1-411a-816e-70d22e554156","block_type":"box","text":"of the futures contract.","page_number":55,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"cf8acce3-5ee5-45a9-b23f-2753beeb5b27","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":55,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"b087f390-cb37-4c6e-9e41-e0bd0ef03099","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":55,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"ef837c7b-5d1e-4e2c-bef0-e47f96c16990","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":55,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"366bb689-7e93-4fc2-a0e1-ff2602b0d336","block_type":"box","text":"relating to the futures position.","page_number":55,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"8b596149-9fa4-4323-8018-9f46d7cc25d5","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":55,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"4d830a4a-9ed4-482d-98fe-c5adb8a76dd4","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":55,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"2091ac0f-c907-42be-9380-f1df17adf7cb","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":55,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"e9c0686e-24bd-46ed-92f2-9eafd70ca023","block_type":"box","text":"Regulations” above.","page_number":55,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"acb7b928-5287-445c-b6a3-ab438b8a5f90","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":55,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"209a5c72-9a04-4e96-92ed-990b3e0e7503","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":55,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"8137db5d-0211-41a5-82b7-b88cf76032d3","block_type":"box","text":"(","page_number":55,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"780b4e17-d596-42d6-befc-d5d8bb90f4b5","block_type":"box","text":"i.e.","page_number":55,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"f0e7a2ef-f77e-40d1-9df3-7c3ae6db4067","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":55,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"244fd3f4-073d-4333-abbb-e8f5c855d4bf","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":55,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"7237f4db-856a-424d-a75a-b73b72886668","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":55,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"0789c54a-4b56-4c45-8cb5-2fc9c976b6e6","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":55,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"6450be50-731c-431b-9577-2a3f99228338","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":55,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"2db69359-dca8-4317-8031-38bbea083867","block_type":"box","text":"Fund intends to purchase.","page_number":55,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"30ac952b-2394-4a26-9a2b-3e67dec430ba","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":55,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"496a9be5-d9e1-475e-8506-83a9bfb0e9d5","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":55,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"459306bc-ab79-4777-967f-ff1b7ca4d4ad","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":55,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"8b133c58-82ad-486b-a138-68ff33b73d67","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":55,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"94da0473-bcea-4d12-bd95-fdfadc7d5a31","block_type":"box","text":"illiquidity.","page_number":55,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"3c932bfc-8ebe-401a-90ae-0aced2d9fafd","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":55,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"9e9ed305-3dc2-4dbd-88ac-1d1f9bd11bf4","block_type":"box","text":"illiquidity risk, market risk and counterparty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":55,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"686acd45-67a5-4fe1-966e-4238e12b34cf","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":55,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"6dd95e21-baa7-42a4-8d53-1e2575871789","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a limit is","page_number":55,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"6387f2fd-ecfa-4a95-9926-71cfc07719ef","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":55,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"ab450912-aad3-436b-bd74-dc0e5bc74061","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":55,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"aae6b922-c187-4e2c-83a5-e0858182d7b1","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":55,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"833c85f2-c4e4-4e7f-bf74-add9c26e68bb","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":55,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"3369b92a-4d0f-423e-b2e2-c4d516b12074","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":55,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"531d8e09-e460-45c3-89b9-5d916d3ab885","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":55,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"17ef965c-6430-476b-b992-17bc3f3705a8","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":55,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"353a402f-7453-487c-bba2-337ed6af8393","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":55,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"55d07e74-27bc-41b7-97b0-be1aab4fb9ab","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":55,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"c25c3e6c-618a-4fa0-ad5b-cbd0d91cedf3","block_type":"box","text":"difficult to find a counterparty willing to transact at a reasonable price and sufficient size.","page_number":55,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"63b333ef-92fd-4cc6-b3f0-c95ad0e37340","block_type":"box","text":"Swap Agreements.","page_number":55,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"64134fa4-6794-4b43-8647-8a5a9ae68c75","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":55,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"618b0c53-04c3-4a4d-8b6f-cc99dbcafeb3","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":55,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"9ed51f90-bc88-4832-8043-c2edad727a51","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two parties agree to exchange the returns","page_number":55,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"2d48ad8f-cee4-4e17-8ca4-b0e3c2e59bf6","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":55,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"993ed305-841e-47e5-8728-375cc54af374","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to","page_number":55,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"3ba230dc-4337-4eb9-a010-91cdc46ccf03","block_type":"box","text":"a “notional amount,”","page_number":55,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"cc633b5e-9827-4c02-ab63-25282fd9670f","block_type":"box","text":"e.g.","page_number":55,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"62e474cf-d471-4a51-8f25-2f6f7ac94a3a","block_type":"box","text":", the return or increase in value of a particular dollar amount invested at a particular","page_number":55,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"b4e6e39a-a49a-4d45-9d69-e1d4c106a2de","block_type":"box","text":"II-17","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"133a1838-c80f-4b00-b5ec-23795d29b59e","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"67151537-007e-48df-89dc-06d3373101d9","block_type":"box","text":"interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index. The","page_number":56,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"2f45ab5f-ebee-4b21-a736-83bf94787ba8","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the parties to a swap","page_number":56,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"84764e97-0523-4c4d-b26d-88b2276c0644","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":56,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"6f965e11-2299-4bc0-888e-bf87d5955af6","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":56,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"b8a4d386-9c62-4d94-a85b-552f25d2ef60","block_type":"box","text":"by each party to the agreement. Swaps that are not cleared involve substantial counterparty risk. A Fund will typically","page_number":56,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"61308e60-5e28-429b-8c1d-b6dcd33592b6","block_type":"box","text":"attempt to mitigate this counterparty risk by entering into swap agreements only with creditworthy entities that have","page_number":56,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"d3a4f92d-7886-4ba9-b9fb-7d7e10ac4c48","block_type":"box","text":"substantial capital or that have provided the Fund with a third-party guaranty or other credit support. A Fund’s ability","page_number":56,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"a24a0a2d-ae1d-41b8-9f8c-05f2fbe27a14","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":56,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"1f0aa271-2158-40e1-b782-68a2fc3a26fb","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":56,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"42fd80cf-d4c6-4823-8600-f537aaa785da","block_type":"box","text":"Certain Funds may enter into credit default swaps and similar","page_number":56,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"b0e9f4c1-5057-4c24-86c2-ee3f11360bc7","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":56,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"b667ae06-71ef-4250-a307-de157ebb48cc","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":56,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"dc6ab048-15fd-4e47-8530-b06832e1c215","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":56,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"b780fe35-123a-4cfb-a81c-89d2d5eed251","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a portfolio of securities issued by","page_number":56,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"c888865b-78dd-41a7-9638-6bf5a3526ddd","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":56,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"2a3e1bea-7e7f-40f7-a88f-ed3b84097a8e","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":56,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"6af2c67e-2457-4230-a2bc-07b2c586404d","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":56,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"bb5b9b21-e129-4073-aaae-76fd9c9e86a9","block_type":"box","text":"index CDS.","page_number":56,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"e4dc032d-5373-47a2-a0c9-0bc76c695592","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":56,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"b7bdc534-bfac-4239-a008-6c323e901724","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":56,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"7ed0494f-eec1-4a83-824d-329b88df7e5a","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":56,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"07b25ce1-aa6e-4f76-8fc1-9f9100a867d7","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “short squeeze.” In certain instances of","page_number":56,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"f76ea319-8360-49d6-a8c1-45861476c95c","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":56,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"82ab9104-4891-45bd-b00e-3718e41f9c4b","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Certain initiatives","page_number":56,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"73fbf2c0-92d1-4aef-8834-deb4eaa364ff","block_type":"box","text":"adopted by derivatives market participants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":56,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"7a040efe-780a-4a0a-aed4-23d9f81c5d87","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":56,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"9b6cfaa5-071b-4208-826b-3e144e9ade36","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":56,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"8b97cab3-1215-4ba7-9a32-6a55e97fe869","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":56,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"a5cbcb1e-0a18-4758-a200-0bdbac238f08","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":56,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"935a3f11-5224-4abd-8324-b5969f97d6c2","block_type":"box","text":"uncertainty as to the occurrence of credit events and the risk of a “short squeeze” by providing that the ISDA Credit","page_number":56,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"9439fc82-8e25-4fc2-9b55-8c0623590837","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":56,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"5aec7271-3fc5-4689-83c9-833666429aec","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":56,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"4bc85399-0522-473d-bae2-54f198c3396f","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in certain limited circumstances refrain from","page_number":56,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"79574300-6da8-4184-959f-8c2a70024226","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":56,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"2a6e134a-87a9-4b21-ade2-9c41014ae2ab","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":56,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"d27be3e5-3f16-4972-9907-e7162252d96a","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Furthermore, a Fund may enter","page_number":56,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"9e5bc655-f0cf-468b-8228-5fdaadc35a9f","block_type":"box","text":"into certain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":56,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"13f4ed1e-a957-4947-85df-ea1dee57dc41","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":56,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"c0b47579-6f41-4014-8618-41b3fbee0e82","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":56,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"86e86e04-cda6-451f-b683-f5cd99d2ce95","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":56,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"4c158514-bf03-49e5-99c2-65ef59a0c8ad","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":56,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"806bea90-3053-4f31-a694-4fa479e5bddd","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":56,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"37fdf0f4-2151-4c97-866b-6393a6750e94","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":56,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"866b4334-e934-4b11-818f-c504628fe2d0","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":56,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"b797399d-8d80-4f29-831c-da1c814aaa91","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":56,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"3557ec17-7d81-45df-9b6a-67e704cd0770","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":56,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"29d5be4b-cd11-4a83-8b5a-9f92b152cc21","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":56,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"68e6060a-d251-4bbc-97f7-f085548d38c4","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":56,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"652a5e74-4af9-4605-a55d-1e8bc9e1f1a0","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":56,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"cdacff70-30a8-410c-9d41-47082269f3b8","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":56,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"0e5beb01-c317-4616-92a9-c0cc1a9247a0","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":56,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"52fde987-1468-48f3-8f54-ee631077be1e","block_type":"box","text":"conditions.","page_number":56,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"2d07c9e7-529d-4ec7-b55c-f96318ef6680","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for clearing to","page_number":56,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"0ba6ec16-4a78-4def-9814-82887a92cba4","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":56,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"52661c3f-8515-4041-a097-6b69830ec5d0","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":56,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"3dc520f2-181a-4c47-9c09-57e6d0426d00","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":56,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"9dfc94a7-233a-4494-bea1-b25f1036ad32","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":56,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"b3f02479-021d-4024-8fb4-de24d6030c34","block_type":"box","text":"II-18","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3f4ef29b-7934-47a3-84e8-a84c4c88e825","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d350469-2482-432e-a1ee-b84f238faa4f","block_type":"box","text":"counterparty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":57,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"7ba36c02-0825-474c-be69-747cb2d0b534","block_type":"box","text":"CDS. The Funds face significant counterparty risk with respect to their counterparties to non-cleared credit default","page_number":57,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"a1c16298-6659-480a-a3cc-edfe6931745a","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":57,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"9d969e86-017c-49c1-855f-ef5f6aec17af","block_type":"box","text":"instruments with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":57,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"d6dd5728-5619-43a0-800b-70e5e38ce5b5","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":57,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"76518e5b-9c54-4204-bc2a-8ce3cabfdcf8","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":57,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"d809c087-4464-45c0-a816-269634c9b969","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":57,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"0e93bbf0-310c-4620-9b32-2d08f11f3692","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":57,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"a0c16de2-6d4d-4fc5-ba83-437a0dcb4620","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":57,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"02188480-d95c-418a-8be3-e139251ae967","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":57,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"348a094a-d10e-412c-abc6-aa4c0c623716","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":57,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"6b95c5bc-8436-4d75-94b4-2191800fd814","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":57,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"9d2dbd1b-9c76-4c82-b993-dd70c1882815","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":57,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"57d1737e-f134-4b7d-8337-fbbbfb9cd186","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":57,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"ff9c9a93-f488-4bf2-b025-f8f6623072a6","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":57,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"3e75a21d-3c7f-4085-9d52-f394050fc97a","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":57,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"28574ac1-7564-4e26-ad69-3d6377ae187d","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of interest rate","page_number":57,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"0e606bf3-5d36-41eb-9ca6-db1a0ed9595c","block_type":"box","text":"swaps and interest rate caps and floors. As described in further detail below, a Fund may enter into these","page_number":57,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"9927040b-1f10-411a-93bc-7c03e28716f1","block_type":"box","text":"transactions primarily to preserve a return or spread on a particular investment or portion of its holdings, as a","page_number":57,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"a06451d6-ea5b-413a-9d4b-38e6802024f9","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":57,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"90ffbc58-ac8c-4ef4-b85e-fb3523c4dda1","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":57,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"62a3ca92-fbde-40a4-8400-5d2283acb6c7","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted for","page_number":57,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"c7132eee-f126-4b25-b9d3-580cae3df338","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":57,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"401af8a2-7674-48c5-80f2-ce8d8ea15df0","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":57,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"e1764337-41c8-4075-9f58-fb3061a4778c","block_type":"box","text":"by the Funds are cleared. The Funds face counterparty risk with respect to the clearinghouse when entering into","page_number":57,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"36100fa0-07e6-449b-8826-c9ae6f7eb611","block_type":"box","text":"cleared interest rate swaps.","page_number":57,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"6f5d3e02-72ee-436e-9168-c8e7cd353474","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest rate","page_number":57,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"ad72f9f0-b5a3-4219-a8b9-8f8cdeaadd87","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterparties for a Fund’s non-cleared interest rate derivatives","page_number":57,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"d57d9755-0c88-40fd-b719-ba60b8d4065a","block_type":"box","text":"transactions are swap dealers and other creditworthy entities that have substantial capital or that have provided the","page_number":57,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"08e0c862-7223-4add-9edf-f3cc95b8e4ff","block_type":"box","text":"Fund with a third-party guaranty or other credit support. If the Fund’s counterparty defaults on such a transaction, a","page_number":57,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"7382937d-7380-4e82-abb6-a09340f11e19","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":57,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"0b9a0d63-3925-498e-a0dc-988dd053bb52","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":57,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"210bcfec-36d4-4761-8de7-922b3192433e","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into certain","page_number":57,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"e879fbf4-d91d-4b84-8a4e-c74c99ff65dc","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":57,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"3ec0f5b0-3457-4c2b-bb98-28a07095ab88","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a fixed or","page_number":57,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"edd33038-6ade-4d12-9acc-f7a4b45d5dae","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterparty based on a different fixed","page_number":57,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"09319687-5787-4988-a643-bb6cdd48ff22","block_type":"box","text":"or variable interest rate, index or asset.","page_number":57,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"1f04fd13-23a5-4c86-89a3-092119eb2743","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":57,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"472c091c-ff8f-4ab2-b337-e040800842fe","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":57,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"e5f36ac0-6272-4391-9c67-c5cdefd3937c","block_type":"box","text":"such interest rate floor.","page_number":57,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"6c3482f3-b3dc-4d3a-80e6-adcdb8591c70","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":57,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"8eb2c110-8c25-4e91-bd7e-34f457f69deb","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":57,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"d4a06cf2-3ce4-41a3-9617-08b05681a0d7","block_type":"box","text":"such interest rate cap.","page_number":57,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"bfed1479-9863-4a8f-9a54-4d454be20154","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":57,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"6926c47a-1814-4c90-9626-ed545e325eac","block_type":"box","text":"commitments to pay or receive interest,","page_number":57,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"66c182a7-39c9-49ff-a0f4-80f36b3be85d","block_type":"box","text":"e.g.","page_number":57,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"f17bec60-94e0-4b81-8584-9a805b1fd574","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":57,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"c1dc4287-e653-4314-b752-825f25f61cbf","block_type":"box","text":"example, if a Fund holds a mortgage-backed security with an interest rate that is reset only once each year, it may","page_number":57,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"b3f2b5f2-b958-4734-a59b-994a4f7fa014","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":57,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"c7492d5d-5eb5-4826-bf31-9c0f5f9ad4fe","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mortgage-backed security due to rising interest rates","page_number":57,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"ba91ecbe-9f8a-4f5c-a9ac-379cc97107bf","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mortgage-backed","page_number":57,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"6cfc6d2d-6a43-4b65-a10f-f56a281b5275","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":57,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"8ce0add1-ff6f-489a-bac0-bb590b48878f","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":57,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"07597554-d8ca-4b89-a7df-53a4fbaeef08","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":57,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"6c594be4-750e-420e-8426-dd95ed6d69d3","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":57,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"e1e02212-5ad0-4115-a2f0-5a86a8b530a7","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":57,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"7dbbcaf9-8770-4c47-b0a9-67a1d002fd02","block_type":"box","text":"II-19","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a1fd6c13-3907-4707-9f85-27a97343b3fa","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f3c4e820-c38d-4edc-a2a2-59074b09b788","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":58,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"4b703c13-d877-45ea-abf0-37353fc19e27","block_type":"box","text":"in certain circumstances, as long term capital gains to shareholders.","page_number":58,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"ba7e2214-5060-420f-abd1-f7b7fda9bcf7","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":58,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"5f4a9c6a-bab2-4354-9491-00d94c437e02","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":58,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"c37680ff-85c5-4b95-bd5f-21c9c8dffa97","block_type":"box","text":"Total Return Swaps.","page_number":58,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"7fd33b3e-72f3-48c2-aaf1-39204108a3a5","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic payments to","page_number":58,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"48dd76fa-84e8-4bfa-9b10-9cfeeff4b93b","block_type":"box","text":"the other party based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":58,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"867d93a8-f356-4201-ab0e-2c516199707d","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":58,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"ec2d89d5-24fc-4453-ab0e-1659d0cb0673","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":58,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"84a90b03-9f1e-44f5-bcd9-a37cc35735fb","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":58,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"ed91cc9f-0323-499c-9f41-6bae1661f8f8","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":58,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"9501c93a-054e-4a23-93a0-1a3e86c286ce","block_type":"box","text":"“contracts for difference.”","page_number":58,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"9f23e92e-75ae-4e7c-a63e-53f3a17fb2b7","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":58,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"e4e3c27a-61d2-4097-b401-311876ddfd82","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":58,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"26c72af5-9d4d-4f8d-abda-a6bd29d84a7d","block_type":"box","text":"required to deposit initial margin but the parties do not exchange the notional amount. As a result, total return swaps","page_number":58,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"598a46b0-371a-46b2-a7ce-2b72c66624a6","block_type":"box","text":"may effectively add leverage to the Fund’s portfolio because the Fund would be subject to investment exposure on","page_number":58,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"e3232c84-e371-44c8-a626-ed444e4bca9c","block_type":"box","text":"the notional amount of the swap.","page_number":58,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"af615c15-7859-4a08-9b1c-323513abd748","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":58,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"cb1b5199-04f9-491a-a8a4-421dfc28827a","block_type":"box","text":"counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":58,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"1faff479-ce81-4910-abde-1f01944114cd","block_type":"box","text":"Options.","page_number":58,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"fa9b01f9-cf03-470f-9cb1-7ca923435a65","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":58,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"0124f6ed-3315-421e-8afa-b41ca0163999","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":58,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"8f9bf5ed-a63a-4a60-84e5-c009f7315f00","block_type":"box","text":"securities, baskets of securities or securities indices, or particular measurements of value or rates, such as an index","page_number":58,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"b912e137-40d1-450c-bc37-df41491dbe85","block_type":"box","text":"of the price of treasury securities or an index representative of short-term interest rates. Such investments may be","page_number":58,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"e07ed7c4-995e-4854-84bb-f5c5db16ac25","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":58,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"8ae5d997-14f3-499d-9d2f-b6a47d20ada0","block_type":"box","text":"and expiration dates and require the parties to post margin against their obligations, and the performance of the","page_number":58,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"590f5e00-082b-44a5-92b6-f579d41fd824","block_type":"box","text":"parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":58,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"27e350bd-1047-410e-a29f-1b4edc1c497b","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":58,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"3617098d-a7c5-40e7-9174-ed590d4d7820","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":58,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"e9db14cb-c480-46d5-806f-3d81d3666415","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":58,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"5943215c-00a1-4c97-992a-95f43beef221","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":58,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"3ae4204b-77cf-4646-9519-06d2249c8d21","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":58,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"2a9dc1f4-38e4-4f8c-b7eb-45e9d7b288e3","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":58,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"553b5b3f-f841-4a85-b5c9-79aa1c0102e7","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":58,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"a3a53789-7896-4ab2-954f-d8f473dfdb43","block_type":"box","text":"OTC markets.","page_number":58,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"1069c956-2ce9-4578-97d2-4036aa93235f","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":58,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"3c83d98f-1573-4eef-8a21-d1ba0f22cd20","block_type":"box","text":"significant differences between the securities and options markets that could result in an imperfect correlation","page_number":58,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"8e83334e-b2d6-4308-8233-0e3388cd8d10","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":58,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"bc465210-c92e-41e0-9b15-2a7595a98752","block_type":"box","text":"particular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":58,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"7f3b505b-233c-40d9-9604-43de45951468","block_type":"box","text":"which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed","page_number":58,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"a9c082f3-c547-4a9e-974c-2ea816a7aab0","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":58,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"ea1294e8-5a2f-42b8-8efc-e2be22ba6c67","block_type":"box","text":"restrictions may be imposed with respect to particular classes or series of options or underlying securities; unusual","page_number":58,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"09c6f56b-fae1-41d7-9d24-6436a3239316","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":58,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"8fc2c2c2-d4ed-465a-879d-28802e45fc90","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":58,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"b2001298-a955-4b23-8870-67e0a2beee99","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":58,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"3c6fb32a-65a1-4239-94c9-940075c8fe39","block_type":"box","text":"trading of options (or a particular class or series of options), in which event the market on that Exchange (or in that","page_number":58,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"b70a07a9-bb3f-421c-ae1d-d15965dfe704","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":58,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"2d5e77f4-d0b9-439b-8a6a-6cb636b9e72e","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":58,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"1e70ed62-6346-4fdc-828d-6869559f8269","block_type":"box","text":"terms.","page_number":58,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"4aa3faf1-b7e5-42b8-abd5-dbde070a3cc7","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":58,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"23f16927-d2ce-4812-b80b-9afaedf2ff2a","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concert with others","page_number":58,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"c5bff8ed-9ac8-403d-84b3-1ec6ce98112b","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":58,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"157df58f-1103-402c-ba1e-7facef02b515","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":58,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"ee0516b9-d66a-44f1-a6d3-f567823dfb64","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":58,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"7f44b7fd-bf5e-49e2-826f-ac8cd3b49100","block_type":"box","text":"II-20","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7bf43b13-37af-4363-acbb-806fb56d0d25","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"720e22dd-a4bc-4d86-8f47-1bf6b4d20c2b","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":59,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"12744f9a-3485-4f78-849d-088d117a16fc","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":59,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"1e5ecf19-cffd-4332-949d-88ed306a12f4","block_type":"box","text":"Call Options.","page_number":59,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"725bfbc6-9d0a-4385-a180-6d4e7fe8138f","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":59,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"03c0c5be-65ad-4234-a1e1-a2fa80b15575","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":59,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"d23cd1a4-8cc6-41ef-952c-ae5f44f96a73","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":59,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"e917f4ad-afdb-463f-997e-e49261e9df4c","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":59,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"655ecc27-32d6-4d3b-91f8-58501f45a312","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":59,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"5f7d3719-e5ae-4ae5-a3c5-dc0d024374e3","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":59,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"5554c0c5-b18d-40c6-8ae7-3c38cdfc6439","block_type":"box","text":"of the option.","page_number":59,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"6a399a78-a020-48aa-9155-7af459c12041","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":59,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"0c9c918a-2506-4ff0-9630-121f80e31c02","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":59,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"8bce8182-7e09-4a29-995a-ec31414976a1","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":59,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"35dce002-13c5-4afd-afa0-417ccf8a1630","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":59,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"5a0142b6-e22c-451c-a914-c57636ed94f8","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":59,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"2db4dc63-b506-496b-aaad-14b510528404","block_type":"box","text":"A Fund may write (","page_number":59,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"b7d3f45d-c224-47f9-bb79-872f0089fe24","block_type":"box","text":"i.e.","page_number":59,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"c70c52b4-ea5f-4492-8a11-be8d86c063d8","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":59,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"657231f4-2061-40eb-b3b2-2ea690f37fab","block_type":"box","text":"enter into closing purchase transactions with respect to certain of such options. A covered call option is an option in","page_number":59,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"91d65228-43f9-4a03-a8cb-371a6caba430","block_type":"box","text":"which a Fund, in return for a premium, gives another party a right to buy specified securities owned by the Fund at a","page_number":59,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"b763f245-1bd3-45a2-a482-8d8ec6e7f3be","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":59,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"6fcc2e08-6534-4733-ae9f-027686944169","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":59,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"d1bf365d-2fd6-4e32-a01c-464a5afec489","block_type":"box","text":"By writing covered call options, a Fund gives up the opportunity, while the option is in effect, to profit from any price","page_number":59,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"e7ce0bc9-0075-4b24-9c19-bdda664d8fa3","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":59,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"961531e1-9cae-409b-9566-4fe5fa721916","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":59,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"51842730-2083-4e73-a0aa-5cc3811daf6e","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":59,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"ae655721-9a88-4c76-8bd2-36f1c3fa483c","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":59,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"a6b6fbb9-e119-40fc-8f91-ce53daa9ba78","block_type":"box","text":"a partial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":59,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"1b4da855-2cec-434d-9a1f-5ecc44cac0fb","block_type":"box","text":"A Fund may write","page_number":59,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"b7a6d312-135d-4a85-b8fb-77d8fcadc70d","block_type":"box","text":"(i.e.","page_number":59,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"27973542-d1e0-4f83-a637-4c38cb31c49c","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":59,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"0647afda-15a7-429f-8b58-adf3852087fd","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":59,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"cd4d66e1-fd5d-4d6e-b549-cd795ea2b4c1","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":59,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"c40a2956-b8c3-420f-9501-30ab4a22f983","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":59,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"b26249ba-0440-4a79-8f10-617783bef2f5","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":59,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"6c1e26a5-b627-4990-a5bf-5ee2cc1f04f0","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":59,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"639fc376-7662-4be8-a578-e92c7e6927f8","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":59,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"782e043c-2732-4a4f-84f6-9bf73cbcaaae","block_type":"box","text":"there is no underlying security held by a Fund that can act as a partial hedge. Uncovered calls have speculative","page_number":59,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"7ca84909-22a1-4315-9591-1a8038c82df4","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":59,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"c942197c-fe57-4b9e-b10f-fa71ce109147","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":59,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"a9911191-94d4-41d9-834f-75958bfda164","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":59,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"da2f0b6d-06d1-4e1a-b7b0-c2276810291f","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":59,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"01c71eca-5cff-4908-b187-e4d91a072637","block_type":"box","text":"Put Options.","page_number":59,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"1722d3d9-1d20-4ac5-9ae8-300d7fdb92e7","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":59,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"db53fb60-c0a3-4e39-940e-883c36218e58","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":59,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"feae4788-1f3c-4778-ba1e-7753a4cab079","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":59,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"f7e7aa52-7832-4078-970e-a4b35592373b","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":59,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"894c76bf-cbca-4938-a46b-ce1c03549078","block_type":"box","text":"instruments will be partially offset by the amount of the premium paid for the put option and any related transaction","page_number":59,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"982a84df-0485-4150-aa7c-8c5026dca076","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":59,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"f6ba7af9-4b9d-4d50-84b7-e19f1081f8c9","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":59,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"1862d27a-5611-4e45-aa13-48b061e39728","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":59,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"66233e5b-c059-4c37-8423-1f8fd380d7af","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":59,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"97c7e275-e5f2-4b9b-8a2e-41f45746a37c","block_type":"box","text":"purchase uncovered put options.","page_number":59,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"ac4db991-49f4-492f-a99a-0f05a0eeccdc","block_type":"box","text":"A Fund also may write (","page_number":59,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"eae2afd9-5907-4b2f-9712-25dc4b938b43","block_type":"box","text":"i.e.","page_number":59,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"ffe57774-3499-4f23-84ce-8852017462dd","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":59,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"b53ca769-a0cd-4537-b71c-78c5cf9588dd","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":59,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"9bb74cb7-d85c-4d1b-8e20-628c8ddd9ad2","block_type":"box","text":"A Fund also may write (","page_number":59,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"0f619b6e-9dff-4e87-9aa5-a74437d5ed49","block_type":"box","text":"i.e.","page_number":59,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"cf5b3566-6d62-4981-9a8d-22bed0a7f660","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":59,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"19692b7e-141a-4307-8365-5b7f7bb99938","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding short position or has not deposited as","page_number":59,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"fbaf41ff-6485-4850-86db-a2f196b9b5d3","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":59,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"fa711188-0fa9-4002-8556-93f0f97859ad","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":59,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"8858d88d-e712-4ed5-bbb1-c154df562546","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":59,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"7a3cbc65-adba-4f5f-be31-11ef8fa77b91","block_type":"box","text":"II-21","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"afd6da03-1e08-489b-9107-262c8a392f02","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0b442cd4-0452-481a-b1b9-a882c8eb2ceb","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":60,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"11ed3284-cd12-4cb2-96b1-8fcda9cb16dc","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":60,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"989b4e64-c394-4859-9ff3-03c753c846d8","block_type":"box","text":"expire worthless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":60,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"1e793bac-555a-4e19-b2f4-098ee2e02142","block_type":"box","text":"the exercise price.","page_number":60,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"13ff9a00-3d33-49ad-b74a-57f17bf8dcda","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":60,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"5c1a93fa-3933-4f46-ad6f-c7d803a97461","block_type":"box","text":"The following information relates","page_number":60,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"2898e73f-9409-4dc2-b767-d70209282eae","block_type":"box","text":"to the unique characteristics of options on GNMA Certificates. Since the remaining principal balance of GNMA","page_number":60,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"55cf700c-791c-4ec2-8659-414f2a3c0435","block_type":"box","text":"Certificates declines each month as a result of mortgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":60,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"99eede4d-befc-467b-9ead-41dabc5576b6","block_type":"box","text":"Certificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Certificates","page_number":60,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"858f4998-3ad5-476e-9305-97d554f8a3e9","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":60,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"9f422912-43f4-4489-b1bc-75c3d5a09dff","block_type":"box","text":"purchase additional GNMA Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash","page_number":60,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"cee977b1-342c-4a8c-8133-2bef7f696696","block_type":"box","text":"market in order to maintain its “cover.”","page_number":60,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"2505bba2-5aa7-4bfe-98eb-634aacdb9d10","block_type":"box","text":"A GNMA Certificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":60,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"c0f46a44-a98c-42d6-adb1-b984acfbbb86","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":60,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"beae2326-b668-4e8e-8863-227d98f54287","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":60,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"ce434c04-65e3-4ddb-aaf6-e94011425394","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Certificate with a certificate that","page_number":60,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"6b93746b-3eef-493a-a397-99d096ced521","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Certificate, it may realize an unanticipated loss","page_number":60,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"ad8bfd39-c757-4acb-a8b9-200edfec9af9","block_type":"box","text":"and incur transaction costs.","page_number":60,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"97a639b9-bf95-425a-88a4-351cfd7c4051","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":60,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"993d9757-fedc-4e67-90e3-eee4aab7f4fc","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to enter into","page_number":60,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"23bb7ab5-e4e0-44f8-a8a0-55adaf893edc","block_type":"box","text":"a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":60,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"58f8ab81-11f6-4adf-8ebd-0fba182829d0","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":60,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"31bda755-a421-445a-a581-7053281b54a4","block_type":"box","text":"i.e.","page_number":60,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"53d91e06-b044-42d6-b5e0-4a0e418ac62e","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":60,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"af057fdb-820f-48ae-8e0d-5967f8c769df","block_type":"box","text":"Depending on the terms of the particular option agreement, a Fund will generally incur a greater degree of risk when","page_number":60,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"0d778a1e-3917-4814-920f-2a8f3ce2f76f","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":60,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"de427f4c-b5a0-4964-8b3c-65f60590e352","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":60,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"24d89f3f-fdb8-4221-ba49-4dcea24c8738","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":60,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"aa545e9e-f2e3-4c65-86f6-96f0f13cef89","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":60,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"785a6348-4480-418a-9e7a-3ad073c257e7","block_type":"box","text":"required, to be cleared.","page_number":60,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"8f62130f-e502-4167-a376-07a2752832e0","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a particular investment or","page_number":60,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"5324218c-07ce-4596-92c0-95f0b55a31fd","block_type":"box","text":"portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":60,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"20503509-c455-4998-88b4-258229075254","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":60,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"492b15c1-55a2-4d69-a65a-f1e209d0bb24","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":60,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"1bf4774d-db29-4e7d-ace0-1e60e6c922a2","block_type":"box","text":"Derivatives” above.","page_number":60,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"0b28c95c-84ea-4e23-8ab2-5d60639c80b2","block_type":"box","text":"FLEX Options.","page_number":60,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"bb6090b7-20e7-41e8-a95f-1adce6de13fa","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":60,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"d9d5313a-dcec-498e-985e-6eddd2d63c4c","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":60,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"b21c9257-2c8f-4f19-bafb-5aea42108b59","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":60,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"cda0e88a-4f8d-4357-a846-8a33b7818d3f","block_type":"box","text":"exercise prices, exercise styles (","page_number":60,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"ea981c50-5038-4a0b-894f-8b1da63a1e3a","block_type":"box","text":"i.e.","page_number":60,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"d11c4933-5bc1-4141-8556-ca8716eabbad","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":60,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"21656049-2918-4998-aad0-d0cd0d30a442","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":60,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"88d4ab70-7dbf-436c-8e82-a228a4e2630a","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterparty exposure of OTC options positions. Each","page_number":60,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"ac567819-d7c4-4f4f-beaf-616910fd55c7","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":60,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"732b50e2-d5f4-4889-b252-7b0c810daea0","block_type":"box","text":"reference asset at the strike price. A Fund’s portfolio may include several types of FLEX Options, including both","page_number":60,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"5753a30d-d45b-4390-b529-e37428b84d68","block_type":"box","text":"purchased and written put and call options (as further described below). The FLEX Options are all European style","page_number":60,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"63611293-6d95-4fda-8607-d53499a558fb","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":60,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"e761f22b-07e3-4d93-bf6f-3cab9a5cd2f3","block_type":"box","text":"FLEX Option’s expiration date.","page_number":60,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"ddcd7b30-ddb6-4f0c-8011-e84bbf99cf69","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the “buyer for","page_number":60,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"9b0fc4a0-64b8-4b57-81b4-a22abba4044d","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterparty risk for clearing members and options traders.","page_number":60,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"988a132b-99a5-46c9-94ac-049d1348b256","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterparty risk with the OCC and","page_number":60,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"cd944032-fbaa-4cdf-9fbc-781ec1277836","block_type":"box","text":"subject to the risk that the OCC may fail to perform the settlement of the FLEX Options due to bankruptcy or other","page_number":60,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"e0856283-cfae-427d-a0fb-59aa3e12c9da","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to perform its obligations under the","page_number":60,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"8672b03a-7c55-471a-9f8b-ddb108e35694","block_type":"box","text":"FLEX Options contracts.","page_number":60,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"7e3fc648-3c60-454c-943b-6490697f6f75","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":60,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"ce0bd2c6-de97-4d08-9d81-80b03fc7da7f","block_type":"box","text":"Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: certain stock","page_number":60,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"f0f72bb9-acc1-472c-bb66-70b09fcdde65","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":60,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"9cee63ae-eb63-4299-be34-b973a9b323c9","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":60,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"6c759c43-bf81-4ad8-914c-2e061707868d","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":60,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"8bbe106e-5d29-47dc-9ce6-21a7044e6fa4","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":60,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"4871c907-9dbe-4968-bc08-ae5b2ca27c0c","block_type":"box","text":"II-22","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"18fbd097-773f-4bf3-bf8e-620b4d6d3f98","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"acb336ed-2c22-414b-bd05-ff60587caa0a","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":61,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"7e4b7641-6524-4098-9b85-cc13199d783f","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":61,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"bf81607a-a06f-4f2b-b85e-09a0c792eb2c","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":61,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"3506c032-b3b7-4bcc-9d44-55d32476847f","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":61,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"107a5fdc-cbf2-4e65-913c-02767410997e","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":61,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"b71baa0d-73db-45e1-a9cd-5784485a6c78","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":61,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"9dfeade3-5c29-4340-b7ac-0f12624683d7","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":61,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"71fa1dfb-2164-4343-8972-1d1938761077","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":61,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"6df27226-dd19-4d0b-9a26-da326b812c7b","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":61,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"532b81ba-8619-4299-95c3-a1c24a20cefb","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":61,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"35486139-94a1-47af-b1ea-03cb7e610a43","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":61,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"d33c08f8-7d50-4fad-90df-7ff99695cf0e","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":61,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"3c3b4526-4050-4274-9a9b-04f705c29ac4","block_type":"box","text":"expire unexercised have no value.","page_number":61,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"446afdff-87f4-4f37-a682-b5dc59417c3f","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":61,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"647a386d-edce-4dd9-b6db-8001ea55eeb0","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":61,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"f2d52c0d-5474-40df-bccd-260a16c619bc","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":61,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"c6f8e896-3a7b-4903-8ee5-3ccdb1815acb","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":61,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"e64260ea-ba8d-4dee-aec5-7dea08fa08ea","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":61,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"9494acc2-1ac1-492a-aec2-e168ffb97ae0","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":61,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"2934fc01-72c7-4795-9840-42fbd899e9aa","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":61,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"b3d1dfec-15f3-48ee-a21e-9d0b09b2f276","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":61,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"bbf887b1-00f4-4ac5-907f-6d61ddf5f9e6","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":61,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"c0574130-4f18-41ec-a561-3e34cf45a746","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":61,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"270e57e9-349e-4285-bb94-647d2b39c76f","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":61,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"72a74cb9-239f-404c-96bb-30cc40745405","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":61,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"89d3f4a1-a18b-4451-a52e-a9a2377f0b38","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":61,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"a092f555-29ba-45d8-b323-45bc8e2a1be6","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":61,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"de084819-46f7-45c9-9725-c8632b3dc715","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":61,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"eb32737d-34b5-408d-b2e0-36cc32f8cc60","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":61,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"47fd2e87-5a48-402c-90ad-e8ec4e314e2f","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":61,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"1a79ab59-3a7f-41bc-b2b4-85d6e2119a89","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":61,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"0efd4997-4b1b-42ad-9d72-4012c43ffd6a","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":61,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"fe26ec73-163e-4ea4-9c7c-b8227864ebe8","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":61,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"1aabdd58-99e2-4df9-9d25-b972809edcb5","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":61,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"d0119b58-2c3f-4eda-89ae-66a1324af879","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":61,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"2c6a0ae3-e0c1-4967-be30-0443f8b34b6c","block_type":"box","text":"Foreign Exchange Transactions.","page_number":61,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"5745e67e-2aa6-4223-8efc-b51e8423b8bc","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":61,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"4b5db052-de51-49d3-8555-f588d63ec1ab","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":61,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"c0ce665e-aefc-4542-8eb5-f05e9c98888a","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its portfolio","page_number":61,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"9009f636-17b0-49a8-9995-44ebc4163eb0","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to certain Funds, to seek to enhance returns.","page_number":61,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"91d94260-42b9-4e05-a552-4e7cd762e9a8","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":61,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"50b99da7-3a09-46a9-9b36-27463d2b40a2","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":61,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"556fa066-5577-4229-adc2-f2c9dec96e4e","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":61,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"643172a6-165d-4715-9e40-505aab6bdc2d","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":61,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"970bf88e-3005-40ff-a5bc-7d680f99e5aa","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":61,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"197942e2-7f5e-4c00-9a79-7ecf65c5b251","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":61,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"a4a2ea95-e49c-4a40-9326-2e7deb280147","block_type":"box","text":"part, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":61,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"3b4e6a9f-801a-4545-acf2-6794362dbed4","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":61,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"17dfa137-4f11-41af-ae59-3a95e18fe825","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the opportunity to profit without limit from increases in","page_number":61,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"3a285457-c5b9-4c0c-bc65-45993ba49a20","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":61,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"23a88f69-7346-4e92-bf2e-5916df56d244","block_type":"box","text":"transactions. Certain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":61,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"25972b0e-c126-4a5e-a72c-747bf2cbc15b","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":61,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"2a0eeb8d-adf9-464f-bce4-ef2fe0bb85b0","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":61,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"4a239fcc-4be9-4296-8be2-09f3d1d55f53","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":61,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"576c5591-3d24-4d10-a971-b30ab55f8075","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":61,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"044bcb5c-5602-4329-aed3-9969fcf56226","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":61,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"6f6dc1c2-af2f-4990-bbc5-b30da92b71c5","block_type":"box","text":"II-23","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c4c29fa7-a1fc-41f8-9d8f-d8ef72c78d94","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7ef78b6b-4eff-4178-88ce-95475acffbac","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":62,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"021258f9-841a-4b5b-9171-eebf677a67c4","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":62,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"f83476b5-eb70-4414-8e55-66e12382277a","block_type":"box","text":"Furthermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":62,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"50349351-b12d-40be-8d1b-dada1b430f57","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":62,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"68a3b116-2e90-4b34-a7c1-55b993a41661","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":62,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"2f3c40ca-b559-4dae-9565-3a3ec06b5ffb","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":62,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"6b88467a-0939-47bc-8742-3732ee497dcd","block_type":"box","text":"particular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":62,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"3a6ef25a-9de8-4723-9a93-9a565009a6d6","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which certain banks","page_number":62,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"6142b200-9f20-4381-a023-61ecd7d4b330","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":62,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"a314f40f-de2d-4ea9-af77-15428cd1e26a","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":62,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"459f017a-0565-4f61-9b89-acca70d63725","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":62,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"103a4cb1-a91e-4909-acc2-fd54d44ea2eb","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterparty risk. Any such failure to perform by a counterparty","page_number":62,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"927af79d-f073-4027-b446-41d1e9a99f14","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":62,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"7ab1b2dd-2521-45d6-91e0-c2a12e6c1fbb","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":62,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"bb1a67be-440f-4c33-870f-a1692e6c680b","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":62,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"acbe49d4-1096-43d3-832c-b5681cf61f35","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":62,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"501d070d-2b83-47cc-a7cf-375991f8a933","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":62,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"1e167277-b0dd-47a1-94d0-a936a15f637f","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":62,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"8e5e6b7a-6218-4f21-a271-b6c05b40f100","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":62,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"cadcf197-cba1-43c7-a564-9f3fd83a513c","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":62,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"184cce17-b977-41d8-890c-aba0c9270c58","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":62,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"8225bdb0-04d6-4b4f-8be7-72bcc782862d","block_type":"box","text":"involved.","page_number":62,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"0dcaa669-da4b-4e52-b099-9605acc82c83","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":62,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"05113ed6-e56b-48e5-b633-b84b2abdf146","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":62,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"3b14a016-09b5-4174-8bd8-11634b78ae96","block_type":"box","text":"denominated in such currency.","page_number":62,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"795ac577-64f7-41a8-bab1-801c929672bf","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":62,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"ed21c759-e64a-4f1a-827e-9ac1a6c24365","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":62,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"b552d2dc-2026-404a-a1ee-011ffc00a5e3","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":62,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"ae64b253-7ee7-4f44-ba15-cd5e67a58905","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":62,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"cf5a0f4b-26c0-4822-bec9-8b2a081bb44b","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a portfolio position, or, with respect to certain","page_number":62,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"b5e01fb4-472a-400e-b4c1-60ae83a95012","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":62,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"81acb705-cc90-4f45-9d22-c5e2e88cf4c1","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":62,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"5e743e8c-f4ad-47f5-af62-2154eb209daf","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":62,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"2279fe34-00b1-4573-be3b-a16f0aba1522","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":62,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"e840e5b6-664b-469a-8904-5c9b1cd1e793","block_type":"box","text":"hedging a portfolio position by selling forward a currency in which a portfolio position of the Fund is denominated or","page_number":62,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"07d114fe-ee53-496d-97d0-cda57b742255","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a portfolio position in the near future. A Fund may","page_number":62,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"96bd18ba-bd5c-4f74-9388-00d5de8b3820","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":62,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"ac191a9c-116e-4411-9d2b-ceda3651f76a","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":62,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"39a3f6d1-88eb-4cd6-986c-7646b660ed2c","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":62,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"6c494e60-bb6c-45d2-a880-f70380ff4450","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":62,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"8ad6d2c8-9a33-4ed7-beeb-c62cccb85ee0","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":62,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"61950e99-a229-4665-818f-0efaf4817663","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":62,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"d0f4f195-0cf5-4d15-921c-6c04998fb2f6","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":62,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"e2d4be04-ece5-4e68-9575-d57fea79fcdc","block_type":"box","text":"of existing or anticipated holdings of portfolio securities. Proxy hedging is often used when the currency to which the","page_number":62,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"10c2dd43-3a04-4173-833c-68ea67be4eaa","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":62,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"e20d0854-c600-47f7-ad62-2aa480961ea7","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":62,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"37ab63cd-8bec-44d0-9194-3bbc3c11bf31","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":62,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"88c1b9b0-cf5d-48b8-8afa-7a32d30d597a","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":62,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"58591228-e60a-4837-b9d9-9f4eaa86fc7c","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":62,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"30afe1d6-8187-4fb6-a8d1-3538b09e64e6","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":62,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"ff78b036-cbc9-4544-969f-ce3448e22b6e","block_type":"box","text":"may not be present, including during the particular time that a Fund is engaging in proxy hedging.","page_number":62,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"fc2cdea5-1d14-4d84-bd9d-9903e0b3af3b","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":62,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"7948903c-3a6a-4d43-b822-1e60049c49ad","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":62,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"ac34057f-b804-4dd9-8211-d35da6d6d1ca","block_type":"box","text":"have portfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":62,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"7b452074-7e3a-4559-8d96-39bc7f59e3e2","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":62,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"2a29e472-2ae6-486a-b633-281a59fdb976","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":62,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"aa9d2705-2025-4164-8af3-3a8b590b094c","block_type":"box","text":"II-24","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1011d405-97e3-4d70-9689-156569713f8f","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fa6ffd5c-9972-4e79-a8de-01b97ea34c37","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":63,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"1b1107ad-a03a-45d4-9204-0b8d4abf8b41","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":63,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"708cb20d-0751-4055-af9b-9ef5f9238cb5","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":63,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"8890693b-38d1-4bc1-8782-1346e385e753","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be thinly traded or are denominated","page_number":63,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"fbfbb0f5-b48f-4314-bc63-8f9b1df07dba","block_type":"box","text":"in non-convertible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":63,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"7ff7c184-59f0-45fb-923c-5d1c16d5de95","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":63,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"25d479bf-7553-47e4-97c7-bab09a2da086","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":63,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"496e21b9-af36-4656-809a-cec12744fccc","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":63,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"8c663ba2-f7fe-4132-8ed1-2ef87581cad6","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the party receiving payment. NDFs are","page_number":63,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"b49951de-e2de-4677-8c7d-8c4134755216","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":63,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"a973618d-bdd0-42a0-8b48-4736ea595f66","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":63,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"6f1638ec-111e-48ea-bc4e-ba50b3d77425","block_type":"box","text":"traded.","page_number":63,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"7b5c5ae1-6368-4303-9879-174a66ee24f8","block_type":"box","text":"Currency Futures.","page_number":63,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"7cc62ca4-c6a4-4165-bd50-259fb66e86e6","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":63,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"cf6f532d-7f6f-4f4a-b961-575c0a498edc","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":63,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"9e86d394-bf17-47c8-bc0d-598e5d352ce4","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":63,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"fb6e8556-372d-4ecf-89f6-0386a0d6f1ac","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":63,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"d4d04896-4a88-4379-9fba-b78560abbbf6","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":63,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"7660a255-59ab-4402-ae23-6d8d0f823eac","block_type":"box","text":"Currency Options.","page_number":63,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"a5cb80fb-9dee-47ac-900e-7e345064566a","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":63,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"89f7c540-c923-40a6-9cc6-64dcd933511b","block_type":"box","text":"through the use of currency options. Certain Funds have fundamental investment restrictions that permit the","page_number":63,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"d5917e21-7b13-4af6-a55f-e90d1ff6eea2","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":63,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"374ca444-fb3e-4044-a74a-71a94add6835","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":63,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"5d0572a9-e26b-4ef1-882f-5b5a4579dca5","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":63,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"d93f73f0-1116-49f6-a632-6ffc9f4fefcc","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":63,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"96d769e9-0b55-4bf3-8c9f-4fe588447a35","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":63,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"d4a3a22b-c3f2-4822-9e9e-9fff99fa0d17","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":63,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"7acd01f0-dde1-4213-b81e-1d3904017600","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":63,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"344f50cc-82e6-4f32-9071-dab8aad80451","block_type":"box","text":"on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options involve substantial","page_number":63,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"6882b853-5b0f-41fb-bf58-06cab3dd1c3e","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":63,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"4ec2b34c-ae5e-48c8-a70e-f38a9f8f17dc","block_type":"box","text":"Currency Swaps.","page_number":63,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"52247224-4e8d-4326-a890-9c1b75171778","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":63,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"f64f262e-1930-406a-8cc2-5874cc4a7208","block_type":"box","text":"hedge portfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":63,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"19e4fa4c-766b-4985-a1df-c29fec4fdef1","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":63,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"436eacc1-b4ed-4e56-8313-3e927d1a13d1","block_type":"box","text":"exchange of the rights of a Fund and another party to make or receive payments in specified currencies, and typically","page_number":63,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"4b68864c-08b6-480c-9904-f425dcaa2582","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":63,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"5728ee90-436b-4e65-8d17-5aea8a16bb15","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other party to the","page_number":63,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"ef119d28-cbf0-4e5b-946f-25b2aa996450","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":63,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"c6950d8b-5754-411e-add7-517f554618dd","block_type":"box","text":"Distressed Securities.","page_number":63,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"ec458e18-ea73-4e80-9aae-5bf1a949daac","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":63,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"397a793d-beb7-4e7f-af48-de4ecd1b4910","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":63,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"bf033016-617c-434c-9def-f3c68c06995a","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":63,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"12ed5725-a644-42af-9538-bd1564250f4b","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":63,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"c20a2f24-4fd0-462a-b191-a00f0571b6dc","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":63,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"30803e63-ae23-4852-bd3c-d80228bc6ed4","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":63,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"54cd8a07-01ec-46b9-b494-aad4164c8040","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":63,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"44c54b85-4885-4d3c-a61b-8f1af97db41e","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":63,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"4cb19728-3100-4f4b-a70a-678fea071b5a","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":63,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"722b6f17-ecf1-4730-89b6-0a09ff01c8ef","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":63,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"69533248-8480-4c64-b71c-3310f681cba3","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":63,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"7e744906-a383-4b69-b1c6-c1fb8ed25d5c","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":63,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"cf464583-789a-416c-934e-dd6ef46007ff","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":63,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"1b08c18e-d671-4f65-941b-3a55ac0f5e91","block_type":"box","text":"significant uncertainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":63,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"5bac6e2f-aa15-4f07-b96b-53bdec9bd684","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":63,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"148e8a92-be91-43a2-bb1c-b51e77846d9d","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":63,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"c01a5600-1d6b-42c0-b324-a164edf32a70","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncertainty as to","page_number":63,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"3ab1fad0-750b-4afc-b2c6-4048ae7320a8","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":63,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"3d19fdd2-301e-457e-be3a-85f1b1cdf3e6","block_type":"box","text":"satisfied (","page_number":63,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"ce2997ff-fb6b-4d44-9164-13f6b536bda3","block_type":"box","text":"e.g.","page_number":63,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"17dd044b-deb1-49c0-87e9-eb92e6091e13","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":63,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"22caaa4e-6942-4aea-9c60-092de43593dc","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":63,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"c290461d-6119-49d0-a1ca-d6f06c8e6712","block_type":"box","text":"II-25","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1838d915-347c-4cbb-bffd-5fe5a84e75c8","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2b18949c-7f1d-4529-9fe3-4ee34272ab36","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":64,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"15a2b713-824b-47cb-b407-866a38c3e803","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":64,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"7cdac5de-4d15-4500-9131-f39154ccec6b","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":64,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"28543733-eddd-4197-b3fc-1cb59f270889","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":64,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"bdea689d-f221-4a28-9632-65a21d02ec26","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund participates in negotiations with respect to any","page_number":64,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"2e11a2ef-4924-47b7-83c9-ffbcea1ab107","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":64,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"59bc04c2-0827-44ac-aae0-ed01af3d0369","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":64,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"ce68893f-618b-4920-88b7-79b12ad00aef","block_type":"box","text":"Fund may have a more active participation in the affairs of the issuer than that assumed generally by an investor. The","page_number":64,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"839e33d7-d810-456f-8df1-160eb79d74a2","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":64,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"83e744d4-1ad3-47ed-aefc-10b7f3c6d834","block_type":"box","text":"affairs.","page_number":64,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"ee589559-433a-4826-860e-9ffa314185df","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":64,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"eaecd75e-c4c6-4d55-a611-702bf4fb390b","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":64,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"2ab95b46-71ea-4094-b258-935c09b4781c","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":64,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"f3c39c80-c666-4369-972b-826f8cddfb8d","block_type":"box","text":"consider ESG factors as part of the investment process for the Fund. Fund management views ESG integration as the","page_number":64,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"5a816275-d6d8-47be-ace7-2d132ce4dacc","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":64,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"cb6f30e7-21ee-4b99-98fd-4d54df697876","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s particular investment","page_number":64,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"a17c53d5-b8dd-4ae5-99c0-643905f93696","block_type":"box","text":"strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock","page_number":64,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"cebe3669-3ede-417f-a552-fa13cfcf5fa0","block_type":"box","text":"research across the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":64,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"2b1e7f76-e198-4ec5-947b-8834e44dde8f","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":64,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"49ec514f-169b-4213-84e7-ecc467548b43","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":64,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"9a7f987a-fb35-4e3a-a3d4-601ece6a136d","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While Fund","page_number":64,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"2b6dbacc-f459-4f5a-85e8-d12838f70db7","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term performance,","page_number":64,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"825b4650-f759-402c-8efd-01ad23c7d1b3","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":64,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"0cb8be41-30f9-4910-9b78-eeca985d27d6","block_type":"box","text":"Equity Securities.","page_number":64,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"a1d75073-16da-45f0-a50c-2a8b3c9971bf","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for certain","page_number":64,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"7184cf12-a375-485c-9f7e-fa506d048045","block_type":"box","text":"Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":64,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"9f6b3dec-7bbb-4d52-b7f6-c33d38e0af33","block_type":"box","text":"interests in trusts; general and limited partnerships and limited liability companies; and depositary receipts. Stock","page_number":64,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"018d9b4f-830c-446f-9390-6f36b96df2f6","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a portfolio","page_number":64,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"e46e41f4-7345-4aa8-885f-6de5698ea357","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":64,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"c04450dc-4b97-4aa4-93c5-a300c70cc461","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":64,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"f522a1fc-fbd1-4bfd-8f48-96919f999c00","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":64,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"d0168817-9f2e-4543-8155-855f8c5e2fb4","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a particular industry or industries, such as labor","page_number":64,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"52d1c6bc-795d-491b-9a78-8b64ba857ba8","block_type":"box","text":"shortages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":64,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"c8d56be3-a590-4f4b-a965-15a4e540fcfd","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":64,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"af9c4487-86b3-4e0f-9f82-6440891a50dc","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":64,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"18826f04-7772-4a1b-aec4-c6508547abba","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":64,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"31a56344-2827-4b0e-89cf-a1a7722d86c1","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public offerings","page_number":64,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"a2a2544f-9308-4469-91a5-16ed068085c0","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for certain Funds. There is","page_number":64,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"d9d70f12-736d-4e5c-9958-873522a66e68","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":64,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"e53d3ebc-0038-4795-8178-3c4f2d5250e5","block_type":"box","text":"these past gains as an indication of future performance. The investment performance of a Fund during periods when","page_number":64,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"44f38697-8472-4980-b8cb-b9b18fe3808f","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":64,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"23e49e17-711d-4129-966c-0b657000eb14","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":64,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"35d81c23-04dc-4f04-899b-bfffff38cdeb","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":64,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"387f70b3-ffb6-49db-9d0b-6df657df2e47","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":64,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"20f5938c-8924-4986-aa73-eefca7b369ce","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the","page_number":64,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"f5e18729-7bdb-4ad4-9bc7-388c859b38aa","block_type":"box","text":"initial public offering.","page_number":64,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"3a230dce-741d-4ec6-aa0c-1c4249088b97","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":64,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"f366c776-2126-4f81-b4d9-4a00db675734","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":64,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"1cdc00c6-0a49-4ef0-8025-b74830a2b474","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":64,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"70f61faa-9ff9-4d20-9d3b-733fa66438e6","block_type":"box","text":"companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by","page_number":64,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"8f908d76-2b93-4255-bf3f-79bfb33fdec9","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":64,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"44fd3007-60b7-4b2e-bbeb-bfddb2dd9249","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":64,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"d807a5db-d079-4a40-b073-ea2f1fbf9464","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":64,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"9e75b5ae-d693-4d6f-b1ad-5b0ced3e297b","block_type":"box","text":"more established companies.","page_number":64,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"1d507877-963a-428d-8ce6-747977314316","block_type":"box","text":"II-26","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"65760966-2624-4be6-bb49-ae024e62531c","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4ee8f7e6-e834-4512-9465-437098ef0049","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":65,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"6f681be1-6780-45a2-9abd-cc8d5c036ebf","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Certain of the Funds may also invest in shares of","page_number":65,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"7a7ff30f-67fd-4d0f-addb-fda70065a62b","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":65,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"156235b8-ae9a-49d4-927a-1e8e3cde66e3","block_type":"box","text":"below.","page_number":65,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"cceefa0a-a733-482d-8046-de4d40f0b91f","block_type":"box","text":"Real Estate-Related Securities.","page_number":65,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"9a1e93de-5ddb-4df5-be2f-ecfc5c45e679","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may invest in","page_number":65,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"9119dda0-8982-47e3-aa1b-9a6980fd74a7","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":65,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"1b11a642-b6ea-4c2d-997b-6a5c6fe638b9","block_type":"box","text":"certain risks associated with the ownership of real estate and with the real estate industry in general. 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The securities","page_number":65,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"aa616144-fb4f-48de-a66c-414b62d92442","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":65,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"b32de100-b89c-481d-8790-7aeaf6593d07","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":65,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"e901a181-45da-4006-ad37-abacee911e95","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":65,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"586e0af2-1cd4-4da5-96ab-aabe0be65fba","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":65,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"6d8451c0-9643-45f0-8963-eec887d703b3","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":65,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"4baa18fb-7da0-4a4e-b669-cda0d6111b47","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":65,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"a1b10d3b-d482-4c6d-bff8-6d49767dbb82","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":65,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"77c872de-c4c4-4a0e-9df4-c4e4526c1e2f","block_type":"box","text":"result, the disposition by a Fund of portfolio securities to meet redemptions or otherwise may require the Fund to","page_number":65,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"94b66ffa-3c5f-419f-915d-dc1b6b596112","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":65,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"ed8b24a3-f5bc-4a07-b64d-32c7c89a251b","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":65,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"91c06989-67b7-45d8-ac2b-cb3e99c00606","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":65,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"2fbdd573-ef02-4bed-ae97-4fd9e1be2b1b","block_type":"box","text":"investment results. 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A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":65,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"c42e0f2a-4186-4375-bf22-d1aadbb7fa2c","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":65,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"5f6f2342-97f6-4ca0-a04c-7e67d64f156e","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":65,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"273b9947-83b3-4b4e-9b68-11548e291361","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying stages of their","page_number":65,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"e9be09bb-54cf-4a32-8b06-dbfe593652b8","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":65,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"fb92bf1e-7ae2-4986-859e-05d197821c34","block_type":"box","text":"cycles.","page_number":65,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"9ff6fa01-63dc-4562-9033-fd75ed0023b8","block_type":"box","text":"Tracking Stocks","page_number":65,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"b16c2b49-9244-45a2-ab26-afb64bcaaad4","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":65,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"548edd10-52be-494d-8fbe-8bab2ed07072","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the performance of such","page_number":65,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"a17be833-f471-4962-89ec-4e6cb80fda95","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":65,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"30ffa10b-4962-4a56-a6ae-81327e6c25cc","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":65,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"c16b436e-57bd-4a39-868f-258147c62a58","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":65,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"ac83b914-980c-4d0a-952a-5d1537c19772","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":65,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"bb106547-5a6c-454f-abd8-1e09cefd7ff4","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes representing","page_number":65,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"7304ac98-66b7-4d6d-aed1-e3bc348b7110","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":65,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"f379134b-a85c-4e57-8185-40671a6be581","block_type":"box","text":"II-27","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"762c04f8-123c-468d-b308-e34376cfdd0b","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b0e08e31-8616-48c0-9960-48eaa4a91d78","block_type":"box","text":"are based on the performance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":66,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"876a9930-eb75-48cb-8200-08c6a0b97d89","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":66,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"8147ba3b-584e-4bff-a7ae-35b7dccd39e4","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the performance","page_number":66,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"ebff0130-0e9e-4cb9-a25d-0b7d3fefd8fc","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus certain fees. Unlike","page_number":66,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"e10c7611-ddc2-4353-a0bd-32e6e4ca0008","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":66,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"2564fc19-c1c6-4278-a8fb-ca0ce4c4d843","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":66,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"bf21dfd7-619c-4292-b582-25fd4d2cd089","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":66,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"8e8706f7-bd3b-47e3-820f-577aff208c57","block_type":"box","text":"performance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":66,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"2594abbb-97e6-408b-942f-76fb1fafb2aa","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":66,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"cc420d96-6ec6-41dc-a8ba-c02267d0589c","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":66,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"67e138dd-bc32-4849-b92c-55aef1808346","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its proportionate share of any fees and expenses borne by the","page_number":66,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"ebb27447-0377-4d91-bed6-ced945028dfd","block_type":"box","text":"ETN.","page_number":66,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"55636097-ffa3-42d5-906a-3113e1e83261","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference instrument.","page_number":66,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"9db01bc9-7e23-4a8a-9dbc-450b5a5f1528","block_type":"box","text":"ETNs also incur certain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":66,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"5114c1fd-ec09-4db6-8c5c-fe510d133e66","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":66,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"8126cfff-ad6e-4c75-8c76-db1e7cfeb469","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":66,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"7cd0448c-2592-433f-a65c-77a1783dab8b","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":66,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"a98788be-12dd-4000-92d9-9b53e85deada","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":66,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"54bd726e-0c0b-481a-b8e8-ddbbfd4b5900","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":66,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"dc9d6bb7-c4f2-4a71-a901-195522776aa2","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":66,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"986701fb-ad41-455c-bd8d-34f055977aff","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":66,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"862ddecf-726c-4410-a5dd-649d7ab4bbba","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":66,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"c630e478-1869-452d-a2aa-e86cf60e21ae","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":66,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"c09fc155-8c1f-4e69-9c8d-366ecd59d322","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":66,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"f7cea30c-b5ec-4b67-bed1-db6a05965d23","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":66,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"65fff92b-7848-4082-8cd9-55d8a600cb67","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":66,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"96aa12f6-2c17-4ea9-9ef7-ee1fddf6a0cd","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":66,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"b252612e-8ebb-44ee-82ed-92d63168a85a","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a court may not","page_number":66,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"2e696da4-3425-4685-9a13-1ba146642cdd","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":66,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"29e8340d-e065-4084-990d-c1c3a175cff2","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":66,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"f2201ad5-36df-4c8c-99f5-214c7a59fcfc","block_type":"box","text":"Foreign Investments.","page_number":66,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"69d9be55-e258-4803-ac5f-9293399cd7e6","block_type":"box","text":"Foreign Investment Risks.","page_number":66,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"267a30bd-4fe6-4aaa-b462-ed05a66ff8d7","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from issuers","page_number":66,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"089cbc90-7e61-43d8-a27f-6cb3f59dca47","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":66,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"24a2cc34-155d-41e1-8cdc-12be9132602f","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":66,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"825f9128-884e-4c78-9e1c-15a3e3b7195d","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":66,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"2a2223ef-845f-423e-a050-a33736d38b0b","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be foreign","page_number":66,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"d7569189-9ec4-44fb-8b69-c748eeb18a13","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":66,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"eecec3a6-61b5-4758-ac9a-060b76403e11","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":66,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"0ca59732-5bb0-4a36-96d4-ec23e339f945","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":66,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"43e90e5b-d0be-4053-b5cc-6c8166f9ca6d","block_type":"box","text":"benchmark index.","page_number":66,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"8f404434-d813-4645-b8b2-d2f3d1e8824f","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":66,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"26cfd745-ab74-4f63-8cc3-636186283556","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":66,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"40713dc4-8180-4208-aac2-e91fdffc57f8","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":66,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"f2758985-df1f-4877-a1c6-fd7cd9b3aaf8","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":66,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"3ebc1a19-c7b7-4137-ac10-689a1cd5666d","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":66,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"b60d2c0d-e6d3-4b89-ab5d-428d31b2ec5e","block_type":"box","text":"securities and commercial paper. Such securities may include loan participations and assignments, convertible","page_number":66,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"7162cc69-d85b-4dad-93bf-a744fc53c935","block_type":"box","text":"securities and zero-coupon securities.","page_number":66,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"36691a2c-cedf-4804-9107-b49e8a425e7e","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":66,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"7884a1ca-400c-4e7c-9d8c-5efd29be4c09","block_type":"box","text":"taxes.","page_number":66,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"adf67dd5-cc52-4263-9951-06b7457798ce","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":66,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"71679b9b-f30c-4810-9834-9c7cbc9dbe07","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":66,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"86902673-7785-486d-beaf-5607975025f8","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":66,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"ac98346c-3ad8-421c-ac7a-d18eca817872","block_type":"box","text":"II-28","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"37a6e26e-e3e5-49a3-a50e-44146ef545ef","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1bea08c3-bbbd-462a-9a70-d121cc7a74c7","block_type":"box","text":"underlying security (","page_number":67,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"1a218b0e-a0fd-4842-babd-f76bd044e773","block_type":"box","text":"i.e.","page_number":67,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"5e545bcc-783c-4370-b78e-d0e6a4bda982","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":67,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"39b675d9-0d5b-4616-96e9-8709efd528f3","block_type":"box","text":"Fund is likely to be greater where a large portion of the Fund’s underlying securities or other instruments trade on","page_number":67,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"9f3caf17-fdcd-4bd0-8407-cd8e52f0a372","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":67,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"3c7c39dc-52d3-46e6-8baa-ca5b681391d6","block_type":"box","text":"result in premiums or discounts to certain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":67,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"a893f346-3779-4d7c-a2ca-620d4670dda7","block_type":"box","text":"Foreign Market Risk.","page_number":67,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"7a1c9ccd-fc3e-4b3e-882a-f4c925b300d9","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":67,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"e321b206-d014-45b1-90d9-bd2f49d2fecd","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":67,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"875d5dac-d314-472b-ad01-590bf244a3e2","block_type":"box","text":"always) performed differently from securities traded in the United States. However, such investments often involve","page_number":67,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"c061622b-98df-4e76-bb13-3f52e91a1dcb","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In particular, a Fund","page_number":67,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"54b7556e-abc0-463b-bfd9-b69f24968b05","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":67,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"d56183ba-382d-4daf-a3cf-f3caf9416c3d","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":67,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"87428ed6-f6b2-498f-8b86-eac5ee24f566","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":67,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"a515a06b-9142-47a1-bed5-814be0f6d7c7","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":67,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"f44c7ae4-fa82-421b-a17e-570db304f1b5","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":67,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"cc0dc71a-d929-4f20-a39d-4c4c851a21f4","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of certain countries, or the","page_number":67,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"517af022-5b05-4317-b8ff-cacc5b6e7739","block_type":"box","text":"U.S. Government with respect to certain countries, prohibiting or imposing substantial restrictions through capital","page_number":67,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"b065cd82-dd8f-4eb7-bb1e-4cd28512d43a","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or certain industries in those countries. Capital","page_number":67,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"64a08441-42be-4183-bfe6-d050ebbccb89","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":67,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"5f393de8-2b0e-4955-8c45-4efaf8ae9179","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":67,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"6d177918-ebb2-47fc-a82e-fe33157216ed","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":67,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"a32714d0-40fb-4f15-9bae-56f01ba01a2d","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":67,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"aa70a98c-4893-43b9-91ca-7be6fbf76f64","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":67,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"13f5a299-ab10-4990-97be-81b375ff697a","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":67,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"3c1485d7-7707-4a7a-af88-7a06795711d5","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":67,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"e0184637-b0ab-4621-bc9f-24d84e6c5967","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign courts, and political and social","page_number":67,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"5c7c3507-c197-48e8-ad6c-14c8cce4f4da","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":67,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"5137f116-a9fc-4b49-814c-013f23a1f99a","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in certain","page_number":67,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"90392acc-9b43-4500-b2c5-2f1715766568","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":67,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"245b39fb-8e51-4610-9401-6f5aed8cdbf1","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":67,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"806e6f0f-b507-4424-a7fd-affe927ec510","block_type":"box","text":"or abroad could result in appreciation or depreciation of portfolio securities and could favorably or adversely affect a","page_number":67,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"d35b784b-dab4-46dc-bc8c-544b73a4f16a","block_type":"box","text":"Fund’s operations.","page_number":67,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"9af100f0-15c6-4160-8d41-038c4cb3367b","block_type":"box","text":"Foreign Economy Risk.","page_number":67,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"a5cacca1-0f97-4323-9184-7fde79a54d99","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with that of the","page_number":67,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"f6859d95-0460-4086-893e-b8da58bfe0a2","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":67,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"e4308bc2-b616-431b-8742-f655097462c5","block_type":"box","text":"and balance of payments position. Certain such economies may rely heavily on particular industries or foreign capital","page_number":67,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"ea33f04d-6e5b-4d12-b55f-9ed40a6f2ea7","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular","page_number":67,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"a7da6bfa-95d1-4f9d-8216-b04ce8c5ba21","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":67,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"91fed92f-fccc-453e-9aed-e2613007aac6","block_type":"box","text":"measures.","page_number":67,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"9566ec63-0244-4d6c-8588-534ddee31070","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":67,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"b96d9159-a1b7-469a-958f-1ad72d0262af","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":67,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"ccd7aa58-c7db-4d0b-a14e-699091cec475","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":67,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"e541b347-c6cb-4cf2-b4a3-48306e86ea7c","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":67,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"b5554178-8179-4801-965f-09f4c295ad25","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is worth fewer U.S.","page_number":67,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"a29fecce-52d1-4195-bf55-e789115bfbee","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":67,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"80f2a483-7df6-4370-b40d-2e2f261fb8be","block_type":"box","text":"that currency gains value because the currency is worth more U.S. dollars. This risk, generally known as “currency","page_number":67,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"514e144b-7906-4243-816e-af4f162df73a","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":67,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"643c863d-ef0d-40b5-b062-a858d40169ed","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":67,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"ed582866-c65b-4267-b981-0fcee16bf466","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":67,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"b6e95d87-6ad5-477a-a7c9-c0ea9041ac7b","block_type":"box","text":"United States or abroad.","page_number":67,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"ff5e8f3f-71e4-40d8-8af2-1b4f171d3c15","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":67,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"b06f5182-7881-40d8-9b4d-9c5fcc6e07ba","block_type":"box","text":"Many foreign governments supervise and","page_number":67,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"9f6ee5ea-e03f-4504-beba-7199ab66cad7","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":67,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"6234827f-7f53-4a34-b34b-4c2915cf2d9c","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":67,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"1047735d-7238-4cbe-a80c-afe99665c9ac","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":67,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"58827da5-e0e1-4343-a850-440440f28763","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":67,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"e6ef8027-9fe2-4508-b850-847d08e5ab8a","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":67,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"84e8da6b-62da-4a98-aac1-fe4973999493","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":67,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"f60f4b92-cc63-4795-b129-d750a6d4215f","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":67,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"c8442afe-05f1-474e-8a30-5a9982c09b7f","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":67,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"fd09a749-8aa7-4267-85b6-d1b8db613d8b","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":67,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"b3da9886-b986-49a7-8420-746ad17ebf3f","block_type":"box","text":"II-29","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5fa54736-3f95-4474-bbd1-c8d7bf87b3a8","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c6e464f2-ba11-4941-82f9-e8b3c4e42a81","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":68,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"4958b692-98e0-45c2-bf44-d440c9c3d0a6","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":68,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"072507f4-1663-41d4-b5d0-b4894db68924","block_type":"box","text":"investments.","page_number":68,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"6fef01c8-7c5f-4b01-b07b-9285a39e568f","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":68,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"0d132f76-16a5-4fcb-9180-b652f5c06a02","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":68,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"833d78d0-bf4a-45e3-91eb-d5ad80628f15","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":68,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"996fc904-3f7a-4edc-93c1-a64efaf18e1c","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":68,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"ec8bf489-d56c-469d-847d-4ecfe35fb81f","block_type":"box","text":"their operations. Also, the laws of certain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":68,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"b4fe4c75-63cc-4f63-b0d8-2442949e2b12","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":68,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"369d64ea-0abf-4aa7-a6a9-dde8b7707668","block_type":"box","text":"for a Fund to buy, sell and hold securities in certain foreign markets than in the United States. The increased","page_number":68,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"7b1c006e-a907-44ef-be56-2aeac6bca1de","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":68,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"42a7cc74-fc64-4d7e-a56b-003f0bbef776","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":68,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"2bec3a77-a50a-4f42-a325-20a4a5958aaf","block_type":"box","text":"States.","page_number":68,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"418df822-c3bb-46af-8692-9baaa7a3c05b","block_type":"box","text":"Publicly Available Information.","page_number":68,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"d38fe364-8303-4cbb-8ce3-32525c95d4ea","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":68,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"4988dad3-149e-41c4-9ee2-453eb0e1384b","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":68,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"94037710-34fa-4f08-8bed-2ba2677382e1","block_type":"box","text":"accounting and financial reporting requirements applicable to issuers in the United States. While the volume of","page_number":68,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"e5d48a23-2fc1-436b-9529-90216b03c533","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":68,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"1e6fdd5f-5955-43e9-903c-3acfe49fef07","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":68,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"b2263ae4-f0c5-49d3-8acb-33af3c8d2653","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":68,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"83065e42-e11b-4117-9f3c-11800f85633c","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":68,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"650d838a-da8f-4e4f-9fbd-777c8e1d5f60","block_type":"box","text":"United States.","page_number":68,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"5267e8c8-f916-48c8-afcd-bb7f859021fc","block_type":"box","text":"Settlement Risk.","page_number":68,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"3cdb76f7-0e4d-4361-88e5-e5b55840f57c","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly from those","page_number":68,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"d3b2d4f1-3f6c-40bd-8b5a-5755f898b271","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":68,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"37d074ae-8fc2-418d-8517-fba38384d541","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve certain risks (such as","page_number":68,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"fcf08634-a9a7-4e75-81c5-82599d63b2e0","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":68,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"dcfe79e6-6602-453d-9c91-94a7662ee5f6","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":68,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"a0a71d6a-f39b-449f-81dd-3af55f896de5","block_type":"box","text":"risk of delayed settlements or losses of security certificates in markets that still rely on physical settlement.","page_number":68,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"f38ca4de-56b6-48f4-85e3-bd6dabbc04a9","block_type":"box","text":"Settlements in certain foreign countries at times have not kept pace with the number of securities transactions;","page_number":68,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"6ec1fe17-f1bc-4488-92f4-c7116aeeeffa","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":68,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"e325d539-5e90-4b3b-9485-244f99396851","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment opportunities and certain of its assets may be","page_number":68,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"7da8b345-c78b-471c-adfd-310654c947b6","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":68,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"c53091c4-364a-496f-b017-402cd0396610","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":68,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"08853a30-bc8f-42b3-a0e9-fa8053c85792","block_type":"box","text":"another party, the Fund could be liable to that party for any losses incurred.","page_number":68,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"cafbfa83-30fb-4a64-85c2-3a54e45e1ac6","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing claims may","page_number":68,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"e5785f68-b0c5-40f2-8ca9-a7a70900f134","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":68,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"076b0d77-5e53-426b-83d6-e2c0dc97724b","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":68,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"7afe6bc1-f2a6-40ff-b246-5484157d5978","block_type":"box","text":"Sovereign Debt.","page_number":68,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"e74c553f-4dbc-4923-9ce1-8df6bcfce138","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":68,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"bb99827d-31eb-4807-97e6-89be356133d5","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":68,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"458d6f3d-e2e8-4a56-9115-54b70f9decdb","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":68,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"c5e0e11a-7a6b-40eb-a939-1699e3330714","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":68,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"864974c1-3053-421c-89ea-b539adb403f8","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":68,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"422b217f-e64b-44d2-8be0-a815d9318e81","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":68,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"ca9fe95c-bb97-415b-a313-62ce73c38344","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":68,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"33c664c5-1efc-4d41-ac53-c7d2b98c03ff","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":68,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"c390475c-80fb-49e4-b5db-a6936ce32add","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and","page_number":68,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"a0893a47-72af-4217-ba4d-291e39433f1b","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":68,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"451d8d77-c7d5-456a-9962-753efeaf92d2","block_type":"box","text":"economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":68,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"762fdc84-5648-4e0d-b441-536bf1e0cedf","block_type":"box","text":"achieve such levels of economic performance or repay principal or interest when due may result in the cancellation of","page_number":68,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"aa04bb85-9194-4c79-9994-ead26bfaee66","block_type":"box","text":"such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s","page_number":68,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"dcb76fc8-5e9d-4dc8-aae7-431aa7ae6b91","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":68,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"4a4101fc-5b30-4a84-bfa6-c4f61ed7d2bc","block_type":"box","text":"debt.","page_number":68,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"85e66a94-9020-4872-9073-7af0ce0e72d1","block_type":"box","text":"Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to extend further","page_number":68,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"88e86796-2d44-4d46-926a-cb14f4fc2158","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":68,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"ed37109e-3fa2-4571-9d5b-507c0f999707","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":68,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"c4b46cff-5d2e-430f-b20b-b958de21df64","block_type":"box","text":"II-30","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"55ba5229-25a3-44ac-8cb8-edc213d9544f","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"501eb043-a8f6-4c68-874a-a71461a718a2","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":69,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"0751cfdf-b5a9-4ec2-9913-1410968bc097","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":69,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"4c5774be-a435-46f2-8371-7af89b7d63e2","block_type":"box","text":"interest income (if any) received from issuers in certain countries and capital gains on the disposition of stocks or","page_number":69,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"0835c444-46c7-4167-8b76-7dd2b071af04","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":69,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"945e1b5d-be5b-47ed-88d0-7085baa32c33","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":69,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"fa4638db-0bc5-4847-9eec-ab75951300d8","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":69,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"bdb96290-20c4-4e73-9dd0-8ae3abeb5f44","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":69,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"4118d17e-7354-437e-9fa5-f33e2bd092ad","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":69,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"47dae7b4-98c0-494d-a8f2-68e842719b34","block_type":"box","text":"down partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":69,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"9075ac95-8b35-4f3d-b395-a70cd5cc157a","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":69,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"08b27912-6941-4ea9-803a-e6a1bc8bd8ed","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":69,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"2fcfce86-2a8e-431c-9e42-31c71c9cd63a","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":69,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"a3cd4ed6-042b-4c7f-8f69-efe39c085f1b","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":69,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"f22bc29e-23bd-4adf-99b7-0be6f419a506","block_type":"box","text":"in the Fund’s net asset value.","page_number":69,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"bda29d16-7591-4d15-812c-9b5265a1133f","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":69,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"3dfc1f4c-9776-4fa2-9b53-f6ec6c929bc9","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":69,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"3e567a70-c941-4ccc-af4d-9585daa7757f","block_type":"box","text":"trading partner of, or foreign investor in, certain countries in which a Fund may invest. As a result, economic","page_number":69,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"a8ae7b52-ecd0-4008-8025-35340e2ceafb","block_type":"box","text":"conditions of such countries may be particularly affected by changes in the U.S. economy. A decrease in U.S. imports","page_number":69,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"140a6c61-86d7-49b4-8893-e086b4c70729","block_type":"box","text":"or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":69,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"e194a08f-ee28-48c2-848e-35464830cf61","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":69,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"7b672bf1-d983-4181-96ea-4933d8c25c1b","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":69,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"c624d971-dfec-42f0-ac47-1df341659273","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":69,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"4427c108-ef0f-4313-b2ed-07b5235ca631","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":69,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"0b797192-d6f2-401a-bada-4f034ef89528","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":69,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"4ce87dbb-94fd-494e-a222-63e754c6ddf2","block_type":"box","text":"allies, such as certain European countries, and historical adversaries, such as North Korea, Iran, China and Russia.","page_number":69,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"4b8d0f41-5eaa-4c1d-834c-325621a52fde","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":69,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"ea978b64-b5a6-463e-800a-488a439d4c6a","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":69,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"545d7f4a-94b2-460b-bde5-4af063b03355","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":69,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"a4f7b85c-7157-4330-b64e-e13b77738a32","block_type":"box","text":"Fund may invest.","page_number":69,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"ea2a494e-7aff-4110-8271-43bf7bf7715d","block_type":"box","text":"Funding Agreements.","page_number":69,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"cfe28203-a333-4be2-9120-e6f71780e3f1","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":69,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"81102ac8-8a90-40f3-b15c-fdbd928a7168","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":69,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"93bbc9d0-827c-44b4-a1c3-277bfd418971","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":69,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"caff59f8-322e-4cac-a08e-7ab132ecd514","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":69,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"6fb7373d-3194-42c1-802c-a9dc967444b7","block_type":"box","text":"not be less than a certain minimum rate. The purchase price paid for a funding agreement becomes part of the","page_number":69,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"43e8b902-e330-46c5-a08b-8c34b1226d74","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":69,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"df11e729-6bfc-4668-9269-20a283523fa0","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":69,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"8b994a40-11f0-4dbc-b5e0-782b787e1e13","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":69,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"3099f183-793c-4d6f-80f0-ed4dc16196fe","block_type":"box","text":"Guarantees.","page_number":69,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"a410764f-b7d4-400f-bc39-0a9a9adc68ce","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":69,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"3ec28454-085f-4b21-af8e-587af0767a10","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":69,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"a485fe53-e081-46be-84c6-94b164bbbfe6","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":69,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"236615c6-01e3-4ab1-9649-b862799e92d9","block_type":"box","text":"Illiquid Investments.","page_number":69,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"1a62cfbe-5824-4226-b5fa-2ef3a0eafd80","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":69,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"28172c04-bfa3-44f8-9d97-874762b7d7aa","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":69,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"b972695d-23ea-4787-b541-7ec255abcc8b","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":69,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"715f7be6-72ce-46e3-966d-200d3ddcbdcd","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":69,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"0cc0bb5b-32ce-4438-adac-bfd2722fe88b","block_type":"box","text":"investments may become illiquid after purchase by a Fund, particularly during periods of market turmoil. There can be","page_number":69,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"d16e67b9-013d-42ba-a370-71777badd198","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":69,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"2a5c4777-b00a-4c8b-b802-392a4266bdbd","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":69,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"914969ed-4501-4e78-a55f-bfeff5d3ca14","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":69,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"eeb2764c-27a4-4907-885d-25a0644297f8","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":69,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"888bcf37-e8fb-494e-98fc-cee389f4f063","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":69,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"13c2ee07-7bb8-4345-a1b4-372b987b28a3","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":69,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"55712c9b-eec4-4a39-a536-0502ecf1b47a","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger portion of the Fund’s holdings. If illiquid","page_number":69,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"5b49907e-7af4-4541-ba42-470200c2fdd1","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":69,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"3fda6af8-46e9-4742-adc5-9d44fd279e25","block_type":"box","text":"defined below) will require that certain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":69,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"0f4e6f3c-9eae-4208-abd5-73e2c29a3b5f","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":69,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"6367477d-4081-4440-8217-7cbaa586e61a","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":69,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"3ef295aa-1ff8-4613-83ef-a38a6cc93fbb","block_type":"box","text":"market opportunities. The risks associated with illiquidity will be particularly acute where a Fund’s operations require","page_number":69,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"b82d2532-3ec4-46ae-9ffd-b224530d0ed5","block_type":"box","text":"II-31","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f2e95122-e241-4dee-998b-ae045ca43cd4","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":69,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"17c5ae78-1a6b-470d-ac0f-6c8b170f7046","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":70,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"43e5844a-9a7b-4d0b-a294-263d9ba7aa0d","block_type":"box","text":"short-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":70,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"9d02097d-de12-4b7f-94fa-41ba4e6ab296","block_type":"box","text":"Index Funds.","page_number":70,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"ad264f7d-ac1e-479a-9783-fa805b254f88","block_type":"box","text":"Cash Flows; Expenses.","page_number":70,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"57ae3961-e792-4ea7-8da0-59d161110c14","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":70,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"59a1c7ce-2896-4123-89f2-9b96256e5115","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":70,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"40e52f08-2376-4555-99bf-f20d1e1469c4","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s portfolio to accommodate cash flow","page_number":70,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"7fed9169-2865-4765-8a57-b841aaa0f162","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":70,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"65852be9-38b3-4a38-9c42-c87aadeba53e","block_type":"box","text":"the investment performance of each index is a hypothetical number which does not take into account brokerage","page_number":70,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"1a8f11dc-fcad-4ab2-a70b-99f3d475512c","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":70,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"4d03a640-c437-46bf-8f42-60dd377c9681","block_type":"box","text":"(","page_number":70,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"7d933a0d-6482-4535-81af-1fc9a0fdbedf","block_type":"box","text":"e.g.","page_number":70,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"3b5486b9-1d27-46af-acbc-c553afc7e823","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":70,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"ee08811f-62c1-4b29-8b85-73ba7739388f","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":70,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"71c662b6-bd04-4695-8452-593b5290d926","block_type":"box","text":"particular security as an investment.","page_number":70,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"601c76c3-da08-40a9-b80b-4b4d25da7ac7","block_type":"box","text":"Tracking Error Risk","page_number":70,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"b1c46210-d672-4bf6-a4aa-92c79bdc1bc4","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s performance","page_number":70,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"6975b2f5-17cc-4d3c-b1b5-fbd94a4930dc","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":70,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"d47cce1d-2786-4f67-bf5b-edfc9d8233ff","block_type":"box","text":"instruments held in the Fund’s portfolio and those included in the Underlying Index, pricing differences (including, as","page_number":70,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"a25b71f4-fb19-4ef9-9592-3bac7cdbe128","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":70,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"de5279e9-f329-48f5-a3f3-505705ef902f","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":70,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"7dbb7e25-213d-40de-be85-4f4dab7b0b59","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":70,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"5d5fdb5f-9c7b-4f4b-abef-4c6986a29c44","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, portfolio transactions carried out to","page_number":70,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"4ff96595-e1f8-41e9-bad3-3c02a54ff4be","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":70,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"8c51e378-fcf7-4751-842a-97615d637942","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":70,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"62abd6dd-e32f-4a06-a40c-ba1061ab13ab","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":70,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"689fd9f5-d9da-4446-b6fb-c89e4d29e167","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":70,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"076070ff-1c8d-4dd5-bebd-cbd8d23dbbc6","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":70,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"7b1a30d8-26a2-4111-8202-b272a9e24c99","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":70,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"84e200f6-f9bd-4cbb-af9c-7d0c09af3c47","block_type":"box","text":"price growth that does not appear to be supported by publicly available information on the business and assets of","page_number":70,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"fc0dc63e-5eae-4eb9-8d04-47cd74a7193d","block_type":"box","text":"the issuer, unusual or significant short interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":70,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"6b333045-4ddb-4564-b0b8-918028de87ae","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":70,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"29b588d2-6461-40a6-b0e3-728dfc346ebc","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, alert the index provider as to the alleged issue. The","page_number":70,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"82dadfa1-a329-4072-b87a-534a517922e2","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":70,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"8d2d362d-e62b-40a3-ab6c-0004880c09f9","block_type":"box","text":"the rebalancing of its index. If the securities continue to be included in the index, the Manager may underweight or","page_number":70,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"2ca0973e-a9b1-4792-aa4e-a97340e2d611","block_type":"box","text":"exclude such securities from a Fund’s portfolio and, if it does so, such Fund will be subject to increased tracking","page_number":70,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"457bbbe5-9fc7-4b2f-be06-cb7e4287e7d8","block_type":"box","text":"error due to the divergence in the securities included in its portfolio from its underlying index. 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BofA is","page_number":72,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"ccec8639-a60c-41a8-b45c-a53167b7e1cc","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":72,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"e498408c-0608-47b8-b324-5507f678af23","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":72,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"0f29a52f-6d32-4ff7-9a59-a4dd7aad31cf","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":72,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"891ba847-95d5-44f7-93bb-2e9909ba6517","block_type":"box","text":"completeness, or otherwise.","page_number":72,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"9afd7709-c3b7-4ac1-8b69-6495a777af0a","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":72,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"b55b86fc-ebd6-4623-8b6c-f354efe57ed1","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any particular Fund or its participants or any other product or","page_number":72,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"08003cfd-0742-45d3-8129-24e6ceae9e15","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":72,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"36f8d554-ca4d-47ce-aebf-e3ae348879f1","block_type":"box","text":"Indexed and Inverse Securities.","page_number":72,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"ade6f552-9637-4aaa-b58a-60dc9d4e7ed6","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":72,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"b87e3975-7437-4063-b5cb-caf8165fb482","block_type":"box","text":"particular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":72,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"e5ade0fe-baf8-4c65-bcbc-17ee156950b2","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of certain securities also may be based on the","page_number":72,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"6e41fee4-cd39-4280-aeb3-e3cd5ff6de71","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":72,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"3ae3cd70-27f3-41f3-9a1b-ff3e66e6ad17","block_type":"box","text":"be subject to risk with respect to the value of the particular index: that is, if the value of the index falls, the value of","page_number":72,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"05e4a1da-ab3e-4992-bb54-28fb5565ba10","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on certain securities may also be","page_number":72,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"8265ea61-3678-41a2-b81d-6cb968938802","block_type":"box","text":"based on relative changes among particular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":72,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"fc738746-c697-4623-8027-905f7be59496","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":72,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"79426ce8-ccab-4c9b-b869-85b9e3a58537","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a short-term tax-exempt interest rate index). A","page_number":72,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"39102f2a-3bfe-4ab9-a783-a7166e856a71","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":72,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"58c08b63-1f59-4c4f-bc0d-2848627c30bf","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":72,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"1be63c81-3b47-411d-a915-e2ba6b06f977","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":72,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"71086043-73f3-470c-9299-0c1db9f9d7b5","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":72,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"de80c1a3-29fa-476a-8ca2-b2225971f504","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":72,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"f61684ee-1196-4f5a-859c-12de934000f8","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":72,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"500827e8-8919-4157-a24c-5b23b7f8eaae","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shorter-term","page_number":72,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"928c2b16-8585-4649-8087-81dcb874a584","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Certain investments in such","page_number":72,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"04ebebcf-59b9-4019-af12-938d65c0ebea","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":72,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"c41b2eea-28ae-4441-b534-99e637116b90","block_type":"box","text":"portfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":72,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"4faf48c5-2be5-44e0-b064-b2ed15d28846","block_type":"box","text":"portfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":72,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"8b5d1caf-0c52-453f-9946-7e20d653efd2","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":72,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"a3640c3c-b7fa-4f3f-ad91-9c23748684cb","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Furthermore, where such a security","page_number":72,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"adab63c7-4c30-4696-9834-051ad9e0c8d1","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":72,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"c3bfb08b-8265-494c-9db4-198da6568fda","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":72,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"d31fd7e3-b78c-4921-a7ba-df9e291bf3ad","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":72,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"d0dee097-f175-4108-8630-c4d26d63674f","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":72,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"da8a7eda-10c3-4518-b960-2537dcafa72f","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when short-term interest rates increase and increase","page_number":72,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"4d7da700-771e-4b63-bbb1-a6433b6275da","block_type":"box","text":"when short-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":72,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"0b967eed-42f1-4a95-a112-58b98052803b","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":72,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"2e16a4f0-4a4d-41e7-ac96-82b1db2f4bdc","block_type":"box","text":"Inflation Risk.","page_number":72,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"a219414f-0695-491b-a73a-cbd58d45f39c","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":72,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"85e58265-4a78-4583-9fa4-822b09e6d6bf","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":72,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"cad3ca62-2636-464e-b9bc-fd588936b447","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":72,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"ccb671db-042a-4e69-a545-0b86af083b70","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":72,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"cf6f6d7f-8148-4d81-94be-07c132301b84","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":72,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"81945421-867c-4ab8-8d6e-29370c5d4413","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":72,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"2eeeac5e-4c5b-46e0-b4d0-981d65bdf96c","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":72,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"e6452d0d-0d1f-45ce-88aa-7f986c7ce615","block_type":"box","text":"the secondary market are affected by the performance of the stock market overall. If IPOs are brought to the market,","page_number":72,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"471723de-b429-4fea-a062-4b54657a24af","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":72,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"84cf9783-afd7-40f5-9b37-7dfbadf0186d","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":72,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"b2de7b02-91d7-4a79-8850-24c44d7f690e","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":72,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"1df2e143-8f5f-4ab0-af0f-ae5a34bc6453","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a short","page_number":72,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"edf26a79-a98c-4da2-94da-0f010eea14c2","block_type":"box","text":"period of time given possible price volatility. This may result in increased portfolio turnover and expenses, such as","page_number":72,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"f49128d8-e8b1-4243-a3dd-d7ba1a994f72","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":72,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"1a670c74-fda1-4c67-9c4c-d1276e07deb8","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":72,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"26e9432b-36df-40dd-b921-4225e2058128","block_type":"box","text":"II-34","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"80af7c13-f990-42d4-b0df-c8347adf0235","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5f7fe53e-75b4-4c70-be87-719aaed74dad","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future performance. The investment performance of a","page_number":73,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"005a0f78-d23b-4dd7-9679-33f7e40f8949","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":73,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"3ea4e054-edfe-481c-b01c-f8c8d5a74738","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its performance will generally","page_number":73,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"0d32cd2a-5c8d-4110-b148-0ff175e4e249","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":73,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"885322cd-b881-4e47-89d5-688635129962","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":73,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"af88aeff-1db5-4686-b730-4d07f5d5581a","block_type":"box","text":"be available for very limited periods.","page_number":73,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"b5bf68a9-2da2-4525-8b36-d1ea039b758d","block_type":"box","text":"Investment in Emerging Markets.","page_number":73,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"b1b66849-be10-420e-bf86-699269c9630a","block_type":"box","text":"General.","page_number":73,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"fa88cccf-9ad8-4eb4-9766-ba95bda36778","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":73,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"4012a7aa-2bf2-4cc2-bba8-608a1237014a","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":73,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"60a1ae2f-70c3-405b-85f7-debaae1ce6f2","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":73,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"819987bf-0635-4039-9d2c-152eec059015","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":73,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"0e8a3647-2d2e-4d5f-8a4b-98faadd863cd","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":73,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"1b595067-024e-4cbe-ae9c-226d2c4afdff","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":73,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"c4948bbd-2d9f-40fb-90d8-a70cc1706464","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":73,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"d6092b27-e8e2-4e26-bd6d-3cd8617a7b6e","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain","page_number":73,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"d163ea67-ca93-40f0-b4d2-875a43c3ff5a","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":73,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"f7bdcdd1-c015-4620-becf-9e42a758fdba","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":73,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"c485b0d7-1c42-4e51-b099-41f8f9dc6e85","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncertain","page_number":73,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"6b17e87f-3df2-44ac-a348-b99e1926ddcd","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":73,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"8494c4d8-c57d-4fea-900d-a0c589e079cf","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":73,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"8cd26e89-38f3-439a-821f-ba135a6a113f","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":73,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"e45b5b4e-dc5e-4e38-b0fe-2ce864864946","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":73,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"7a28d934-6a1e-49cf-8d61-191201585b98","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers or industries","page_number":73,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"fd88e2c0-4500-4828-99d9-36e1a5e6e2f3","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":73,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"68e0674b-52f9-4540-aa72-6078c3882bdf","block_type":"box","text":"private and foreign investments and private property. In addition to withholding taxes on investment income, some","page_number":73,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"7d088625-5b7a-4d69-af00-2af8f6e438eb","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":73,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"ecb5492f-8ad2-4e31-8f3d-069c0fb939f6","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":73,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"e8143c48-579a-4636-822c-6d9dee60bce6","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":73,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"4a777d2d-ef86-4933-99bc-f3ae6cb4811d","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":73,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"5292f86f-1352-41a5-8d8e-6f65e1bebee6","block_type":"box","text":"markets will continue to present viable investment opportunities for a Fund. In the past, governments of such nations","page_number":73,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"af70b2bc-ce56-47f9-b87d-beb5f76170a4","block_type":"box","text":"have expropriated substantial amounts of private property, and most claims of the property owners have never been","page_number":73,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"a4d303fd-ceac-4c94-bfe3-fc0784a210fa","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":73,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"9d90925d-263c-42bf-acd0-f223329b40aa","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":73,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"a4b1f7e5-fdf5-4a2a-916c-e052bc73100e","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":73,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"797639a9-7667-477d-aff8-fc1a6783d648","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":73,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"5eccbcea-a7ed-4bc5-988c-21492e1b8fc7","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in certain of these countries and","page_number":73,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"00740fb2-01b3-45e4-89ba-3db37c6f2349","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":73,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"14b2e782-65cb-4b62-806a-233b5a917286","block_type":"box","text":"volatile than investments in more established markets.","page_number":73,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"673b47d4-ef30-4b7d-b265-fdb9dac9ecbe","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":73,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"5d614b3f-8de9-40df-99d0-62cc42edea10","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":73,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"7e7fd478-37dd-4241-b2ce-0d5972fe8d5b","block_type":"box","text":"financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain","page_number":73,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"3339543d-0f61-47ad-8c3a-877beac0fc06","block_type":"box","text":"countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment","page_number":73,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"81360474-a3b8-474b-b7d8-2da4fdec8fd4","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":73,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"c16e0896-e4cd-40bf-9469-1fe283dab7ac","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":73,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"71af1f74-75dc-4549-8977-483a341dfada","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":73,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"5ac549a3-abc2-4849-aebd-10dda2156e72","block_type":"box","text":"acquisition or disposal of securities.","page_number":73,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"9602b6ca-fe24-4494-b43f-9c6114fd2234","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":73,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"099f69ce-cc14-44a9-afdc-9275fc14ec92","block_type":"box","text":"in developed markets, in part because a Fund will need to use brokers and counterparties that are less well","page_number":73,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"cfa6aabd-793c-4a47-b1f5-65263078f95a","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":73,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"2348dec3-3540-4602-bcde-93b7778a11db","block_type":"box","text":"negligence, undue influence being exerted by the issuer or refusal to recognize ownership exists in some emerging","page_number":73,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"8650e250-d952-4250-92e1-82425c431c5f","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":73,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"b2c0557f-3396-4348-b2ec-88851e2beb4e","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":73,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"1f3b61f4-4d95-4c54-8e0b-5578e8c648cc","block_type":"box","text":"II-35","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8cd5fdaa-28ae-47de-87c2-2fc578fe71f0","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"122b4852-11c9-4220-b49d-6292cc7b0fe8","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":74,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"004adf11-0f02-4404-924a-a07a53365a3c","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":74,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"09aee8a9-3bf4-4ea9-bace-8c9f8aa7afb8","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":74,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"9f92c231-1735-4fde-bd08-854bcf11f6aa","block_type":"box","text":"characteristics of futures contracts. In addition, certain Funds may engage in foreign currency exchange transactions","page_number":74,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"d90cdb03-c702-40a8-b83c-e90565a426dd","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":74,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"94f7ee1f-8903-4460-b95d-a683e07f6c46","block_type":"box","text":"performance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":74,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"812c99cb-660a-4556-ad4e-831d5d975135","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":74,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"6bc5af2c-172b-4fdd-8ba4-8900a6a7f8fb","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":74,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"43b15b39-b2ed-4fb9-acde-3babe4db8ae3","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":74,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"9be38aba-d15e-4deb-9168-2798dacd8804","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to certain","page_number":74,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"68831059-b501-4601-bcd0-c1199ec634a5","block_type":"box","text":"additional or specific risks. Certain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":74,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"066714e9-31ea-452d-9132-8dc6d1eba6ea","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":74,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"9b43ad9a-83a7-4b82-94e4-6e52d69e2440","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":74,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"73e3812f-a673-43e9-9771-78781fdb739b","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":74,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"5134bce3-d868-4b8a-9e0c-560c8e282141","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":74,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"f5164dfc-73c7-4655-8a66-974fac4add74","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":74,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"6413d29e-5d2c-46c0-abf3-450911fbf21f","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":74,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"7e008eed-2380-43d8-a6ec-05137f90d719","block_type":"box","text":"in potentially fewer investment opportunities for a Fund and may have an adverse impact on the investment","page_number":74,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"18e0d1ba-fb63-4bae-81e7-af565a7b99d3","block_type":"box","text":"performance of the Fund.","page_number":74,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"1adbea1a-91ad-4f05-a489-c5fb69675bd1","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":74,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"b3d1d436-d084-44a5-b39f-abf89103fb8e","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":74,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"0ece84cf-7fdc-493d-94b0-292107f2ee36","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":74,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"6cdb0bbd-b6a5-4431-aa3f-226e7301141b","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":74,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"5b72c704-e804-481f-90e1-84b4df34db6a","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":74,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"dbde8665-1662-442b-bf36-e6c6eb140deb","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":74,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"6837342d-d6a6-469a-8c9a-a0cfeb14a64b","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":74,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"fc78c13d-632b-48cb-8543-93148887fed1","block_type":"box","text":"common to most such countries is that the economy is heavily export oriented and, accordingly, is dependent upon","page_number":74,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"531aaebf-d65d-4264-96e7-0fbdd8cdc8bf","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":74,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"51d16ca4-3f2a-4d74-99e5-c1f3295d499d","block_type":"box","text":"in certain countries, as do environmental problems. Certain economies also depend to a significant degree upon","page_number":74,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"8ac4a36a-5584-467b-8645-478904931121","block_type":"box","text":"exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":74,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"aef85cd5-eccd-4ab3-959e-6c5153a20efb","block_type":"box","text":"affected by a variety of factors.","page_number":74,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"a01dce7c-f823-48db-913c-2875ecb0ca46","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":74,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"3ded70fc-8815-4644-a5b6-5d46429c7735","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":74,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"38c3d96d-613f-4098-9267-e127e17c5cf1","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":74,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"990c8cfb-1d48-4c76-a9ff-9704ccd6016c","block_type":"box","text":"clear in certain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":74,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"879ca048-470d-44e7-902d-c545b7797520","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":74,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"7cfd1f59-9026-490f-97c5-f0bf813247bf","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":74,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"209c3a93-b78b-41f3-bae0-229a61cce253","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":74,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"f3b638ec-dee8-4a06-bc5e-95bb68dce542","block_type":"box","text":"substantial influence over many aspects of the private sector. In certain cases, the government owns or controls","page_number":74,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"66d6ef35-605f-47eb-ab72-3adb40f0b118","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":74,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"0e12275a-af72-417b-93c7-3c26221f1260","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":74,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"9bc3d435-4f8d-43c8-ab38-07b4c4026ff4","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s portfolio. In addition, economic","page_number":74,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"984b0441-2f20-4717-b632-3765d7aaeae8","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":74,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"61d20d1f-c447-4aac-8185-7c39cfc70b4e","block_type":"box","text":"nations.","page_number":74,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"c9824c6d-45d8-465c-9d7d-631098714780","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":74,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"1c05eea5-6beb-4fae-bab9-331236114d45","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial reporting","page_number":74,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"48273300-9d67-4ce8-b2db-c4c18bf038d6","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":74,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"94556df9-bc40-448f-8f59-1b2c20e8776f","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":74,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"2a82e958-7449-4fbe-979e-11922bfe9004","block_type":"box","text":"certain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":74,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"fc8b2e0e-8b44-46a7-9240-525b8bff684b","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for certain developing","page_number":74,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"a0a80450-2abe-43e0-b1f9-9a7b0068f808","block_type":"box","text":"market Asia-Pacific companies.","page_number":74,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"83ecdc61-d2fb-4f3e-8b26-55b75e1193cc","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":74,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"1744d66c-9413-4438-a994-798c74ee929c","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transportation and custody","page_number":74,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"3405c309-4c25-4d09-8b55-40c433897b76","block_type":"box","text":"services for such securities outside such countries.","page_number":74,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"1c42ca7e-50bb-4c34-b723-9b24ee1b4796","block_type":"box","text":"II-36","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f4b22631-ca78-4c5c-9af2-332931c1b5c3","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0e505cde-be54-4214-8291-0b865f785e39","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":75,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"4a01db29-fee2-4918-b712-4e58604cbb62","block_type":"box","text":"to commercial banks and foreign governments.","page_number":75,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"6c4ac9c7-0a0f-4eea-9687-422febf82bfd","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":75,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"9f736cd4-5d7e-40c5-8305-adaa51bcf22f","block_type":"box","text":"on a Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":75,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"53416f5e-197a-4c05-82ce-6dcdf9ac189a","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":75,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"3e783eb9-202d-4fb0-99e5-35f9da49e053","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":75,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"fa37b0b5-cbd0-4548-b5c4-191d890850ea","block_type":"box","text":"practicable or appropriate to invest in a particular developing Asia-Pacific country. A Fund may invest in countries in","page_number":75,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"1cf4b64a-07e5-4f10-89dc-cf6c2350f560","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":75,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"23435722-5faf-48d4-8609-2711b6c19575","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":75,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"c808e65b-cd0c-4661-ae0d-c5abd1687fb4","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":75,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"8c62c7e2-bad8-452a-b4b1-5183eb7f7b07","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign","page_number":75,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"783dc5af-0b62-4cc1-8111-690f1d2f07a2","block_type":"box","text":"entities such as a Fund. As illustrations, certain countries may require governmental approval prior to investments by","page_number":75,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"58943d8b-1db7-4176-a347-90072f55a0a3","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a particular company or limit the investment","page_number":75,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"8d63e26a-dfd9-4bf3-a9c8-c1401248ad71","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":75,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"f3ec6d35-20e8-435d-8a85-204940dd4fc1","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":75,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"fc04be85-5be9-4b7c-9147-6c1addf1d913","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":75,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"55c15d60-ed21-44b1-91df-d4ece74e3ae1","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":75,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"1a69f520-c692-4935-a08e-3b32fe7b4301","block_type":"box","text":"have an adverse effect on the value of such shares. Certain countries may restrict investment opportunities in","page_number":75,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"dadbdfa9-e00e-4a75-ae9f-c4e5d22b3a21","block_type":"box","text":"issuers or industries deemed important to national interests.","page_number":75,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"87835b20-7630-480a-a77b-c512f6485a28","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific countries, as","page_number":75,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"502c9264-a2d0-4d77-9646-2cb62567ba6b","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":75,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"29aed66c-2a8d-4fc5-83cc-f9108fb84d31","block_type":"box","text":"a Fund may be required in certain of such countries to invest initially through a local broker or other entity and then","page_number":75,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"cca09519-6502-4062-990d-a6c39a8893cf","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":75,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"f8c1ac98-4303-41ff-b7ed-7b8b002c1432","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied certain of its rights as an investor,","page_number":75,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"de708e5c-91a1-4568-9f2e-d94db17e7e07","block_type":"box","text":"including rights as to dividends or to be made aware of certain corporate actions. There also may be instances where","page_number":75,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"83333b5a-2c6c-46c9-a543-6b7294943cef","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":75,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"73bc3213-1b03-486e-b702-48ccfc4531ec","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":75,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"4da83e57-6dd2-4dc8-8aa3-de4710f21a0f","block_type":"box","text":"investment at that time.","page_number":75,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"db99084b-aaa2-4bd1-be24-255bd86cb161","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate investment","page_number":75,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"dd845ef4-8814-4242-8a3f-28eb0646e2c1","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":75,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"c353194d-3bc5-49bb-add9-bd58802095fe","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":75,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"4f624d33-034c-4346-b2c5-0bffee6aa19f","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that certain countries may impose currency","page_number":75,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"59066807-433b-419f-aff4-752a4d76e70a","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":75,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"741e33ac-4558-43af-b695-a478b7ef997a","block_type":"box","text":"that such restrictions have the effect of making certain investments illiquid, securities may not be available for sale","page_number":75,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"3bbc70b1-fa2e-4f3e-b2d7-6824293b9e58","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s portfolio subject to","page_number":75,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"75cc5b0c-cef6-473f-91ee-aeabecc6717f","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the portion of the Fund’s assets","page_number":75,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"ada65746-d295-40cf-89d8-c06aaaf85636","block_type":"box","text":"that may be used to meet redemptions may be further decreased. Even where there is no outright restriction on","page_number":75,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"cb324e74-a131-448b-bdd5-8cd0e9f70320","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect certain aspects of the operations of a Fund (for","page_number":75,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"5e5208da-c386-4456-93d9-16dc649b1450","block_type":"box","text":"example, if funds may be withdrawn only in certain currencies and/or only at an exchange rate established by the","page_number":75,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"29a637b0-4440-44ad-a914-97e7e9bf7b9c","block_type":"box","text":"government).","page_number":75,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"98aa197f-5c24-48e8-bfee-d6e00f98242c","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":75,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"b584ad37-7514-493c-9bd9-15d42dd8bab2","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":75,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"10ab6803-7b89-4bbe-8cad-04c9867f8cf6","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":75,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"3ad0fcfd-d9a3-40d6-9f55-776acc670f5c","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in certain","page_number":75,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"8d5b3c6c-7407-4878-8b10-d36e73451298","block_type":"box","text":"foreign banks and other financial institutions.","page_number":75,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"c78f414e-e714-4509-9395-f944ef9d8fa0","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":75,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"8d989907-6e18-42f5-ad60-548db86aa145","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":75,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"971c7a0f-5862-4fa8-95dd-b49dddbdcb26","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private property rights and","page_number":75,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"582ca0fe-5412-4525-b697-a7f74604e73d","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":75,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"787d4e35-e9dc-46c3-81a6-1cb2be0d9402","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":75,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"a2452bc5-23eb-4980-8998-31b143ae40aa","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":75,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"b2ab4f53-2ab1-4c78-a534-a238adca00b1","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":75,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"5a0d6adc-0aa9-4c57-a130-34159fcdba0c","block_type":"box","text":"certain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":75,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"c08015a3-9c47-491b-98c8-da66ff630c07","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":75,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"3ca997b0-e9c2-4833-8a58-89ef2ef90474","block_type":"box","text":"II-37","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"73a49234-04fb-49b7-87af-9cddde533bcf","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":75,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6f95e582-5aae-4175-ae49-37232644cc09","block_type":"box","text":"little financial or accounting information available with respect to issuers located in certain emerging market","page_number":76,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"619f4486-0e01-4c77-b05d-6f2636bac837","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":76,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"fd0f7621-7257-4863-9d99-f6eba71c898c","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":76,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"6146a5a2-437d-4d55-95f8-054b3ac98cfa","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":76,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"545854f6-9936-4a2c-957e-012e58091ca2","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":76,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"ac934be2-2cf5-44a1-a5dc-bf158480254c","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":76,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"89238235-e024-4a09-ae31-005e8c1fd25b","block_type":"box","text":"foreign securities.","page_number":76,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"443eb22d-c002-403f-9ef7-2e9140dccc36","block_type":"box","text":"Risks of Investments in Russia.","page_number":76,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"1cdc4f78-f4c1-4373-84cb-60bee18ac102","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by companies","page_number":76,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"63efb288-4793-4dce-ab1c-3a0ab5770c05","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":76,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"ab4bbf92-538e-4233-a38d-1f34d751df10","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":76,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"179875f3-b083-49e2-bad8-6ca27dc70ab7","block_type":"box","text":"and a substantial portion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":76,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"253d6b94-70c3-4cdd-9f58-51de03c20bd8","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":76,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"bb5dd9d3-4d40-4f28-8c6a-38d02687216f","block_type":"box","text":"make obtaining accurate prices on portfolio securities from independent sources more difficult than in more","page_number":76,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"c113f248-c59c-4402-bced-d8d0d6705e90","block_type":"box","text":"developed markets.","page_number":76,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"4533c5f3-de53-43b2-9af3-f8011a0d74e8","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":76,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"3de83bc5-3884-4635-9b76-c8c88e10b268","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":76,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"4e2455f6-42c0-438d-8065-98e54fb65b08","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":76,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"1fac1344-344d-431a-8d2c-6ab4df903f16","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":76,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"a2b8c5e8-938b-4d93-b91c-905c20aae421","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":76,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"348d1a4e-3736-4304-94d7-4aef4fed9ff9","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":76,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"431a0e20-5842-4548-b8d2-76205b66cfcc","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":76,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"0a758b5a-ef5e-443d-901f-af7f169fcfe2","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":76,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"75bba81e-1b07-466d-a83d-ef6794bff493","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":76,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"4efd2f6c-b623-43c4-9cd6-45f80b254581","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":76,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"ee55fb1f-e9b7-4f55-93c1-ec4a28e811f2","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":76,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"97852c80-dac7-4800-9ff6-6e81ad84a912","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":76,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"c6932ad2-600c-443f-bce9-dc5334c7a822","block_type":"box","text":"relating to title or corporate actions relating to its portfolio securities, it may be difficult for the Fund to enforce its","page_number":76,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"a135efe7-2fd4-4ee1-b62b-50c8e019349f","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":76,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"bc50dcd1-b299-4f85-a712-32b898e6f854","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":76,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"c31f8880-d4a2-4d18-9723-a3ea4b6e3a52","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":76,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"0e31efa9-af5d-49a3-98df-6bbb2d6f126c","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military measures, as it","page_number":76,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"dfd6b346-29f1-46ad-b4f1-19100378f7dd","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":76,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"d9c92d80-c905-43c7-beec-f6c79f09f335","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":76,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"99d1e967-3dd2-4910-8348-b14fe80dd35f","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":76,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"6acb1e35-f96d-4f47-b8af-f65c606857b8","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":76,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"8d5a3a62-6e40-4f7d-9d28-7832199ed56b","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":76,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"fb44c333-997e-4b57-86fa-44c1b1d3b936","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":76,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"e63a3432-52f0-42bb-9b0e-d3b3bf80ef38","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":76,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"4cfeeb48-98f2-4326-8ccf-837a4421a796","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":76,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"9434f0eb-276b-4b74-822f-20abba0336fa","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":76,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"cc962c90-d6b9-4a2b-89b4-413409b28eda","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":76,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"bec8119e-9858-4e8d-a83e-0743845d0a42","block_type":"box","text":"threatened responses to such military action may also impact the markets for certain Russian commodities, such as","page_number":76,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"b24f5660-52db-43c6-88f4-5ad0e7a5f97d","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":76,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"0e765133-574c-4a43-8480-e8083eec4e01","block_type":"box","text":"sectors globally.","page_number":76,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"2506ff19-d10c-49b3-bb15-d78b9c9c28ec","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":76,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"33553614-11f1-4924-8e98-2f765054e793","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions","page_number":76,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"2e86dc87-3abd-4e86-8a5a-6c2574ef3d80","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including","page_number":76,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"9a3b717a-db80-4eeb-ba83-d493c36f9b48","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":76,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"a7db633d-c4bc-45d3-8562-b2e06c101c86","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":76,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"7b296d39-9115-42ab-890d-bdf30e5b3dad","block_type":"box","text":"payments. These sanctions, or even the threat of further sanctions, may result in the decline of the value and","page_number":76,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"29b18f94-c3b4-4ea0-9618-8d07b8c5ccd5","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":76,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"b15a2851-6af2-4ddf-8c84-367f1909d485","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":76,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"2a612356-c0c4-466a-894b-c73277f948d8","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":76,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"42e86092-ef3e-4b10-9941-c3c6926638aa","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":76,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"75b0d5b8-4c32-4b44-8d05-cadf43884304","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":76,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"28dafa68-5c61-438e-9fb4-9602ffc1b9c9","block_type":"box","text":"II-38","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d408920f-9e61-4d10-b353-0f003fbfb2d1","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"09280f21-f119-4dab-ab4a-06ded34bd431","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":77,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"ec771adb-338f-4b29-b4de-37e1c5f1dff4","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":77,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"0d767d52-fd93-4d53-8c0e-9f2497390ff4","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":77,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"20ef8963-506d-443c-8cc5-51ef40833314","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":77,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"a0e2ecb5-f3a3-41d2-b4f4-5485b6e7f504","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":77,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"5291eee8-9140-4895-9b75-23946d5642e9","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":77,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"a0c84c38-5300-4210-b3fb-a3be6ff6a363","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":77,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"63f1cac2-3738-47bf-bb8b-ea4c09677aa1","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":77,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"9983766e-4f7f-4e7c-be3d-862bc571a13e","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":77,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"02ecb745-b659-44d4-b204-73425f9d1b28","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":77,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"b7df28e9-131c-4b4c-a73f-2dc42956484b","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":77,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"0cc6e362-efb1-4e2f-952d-cfa59b9a9967","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":77,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"36e445fb-166e-4018-b569-56da2f231192","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":77,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"3a991faa-c715-4d3b-9d02-23f7d9f10d0e","block_type":"box","text":"of assets and property or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":77,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"a3b53891-65ea-4ee4-9fd3-f7ac02003ed2","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":77,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"34fddade-b77d-4bc6-b1b9-0340ddde6a26","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":77,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"274f632b-7ff4-4b71-83a4-9583ee0b491a","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":77,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"fae32f76-b3ff-4cf6-8a8b-330fe9fc97e8","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, certain entities and industries. Newly privatized","page_number":77,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"d943e851-704c-40d7-b6d3-1fcfae6d2afa","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":77,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"40dc39ae-3307-4f89-9322-5ce34a972a95","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":77,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"49ab2139-86d8-4c1d-9a07-ef445d3bfde2","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":77,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"48948cbf-00c6-41bd-aaa3-654a567ef735","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Further,","page_number":77,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"657bf3df-92fe-4355-b37e-fe28a4e5aff8","block_type":"box","text":"under income tax laws imposed by the Department of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":77,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"04b224f1-8395-4a15-b7b7-96d79e18b42c","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":77,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"04641f44-5c7c-4b36-bf7b-f6d1567082c5","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":77,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"2c641a2a-0c7c-405d-993e-92d3b7d3ab27","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":77,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"794e8bc7-a6fb-4661-ab4c-0b269496f428","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":77,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"9dd7d9c6-b98c-4ab9-87d0-5e90060a83ae","block_type":"box","text":"impacted.","page_number":77,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"6e250ef6-1751-4488-9c3c-f1cfd6bcea4e","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":77,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"8e2d3926-6abb-4388-92cd-dca6b6d96c8b","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":77,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"0bbe9cbd-4be2-4653-bc2a-0630b875e096","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":77,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"6c011d20-cbb7-4dd7-804e-099d57977067","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":77,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"15da1eb2-9c3d-46ea-bb62-b0d5c259add3","block_type":"box","text":"Arabia has historically experienced strained relations with economic partners worldwide, including other countries in","page_number":77,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"4653e768-e852-44cf-af4c-4cfe50a2ccd3","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":77,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"9615f3b5-010d-4794-b56d-e7a29faa1219","block_type":"box","text":"including terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":77,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"77b60611-826c-4ce2-a7c3-927a307be932","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":77,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"76904d2c-837a-45f5-aa5f-6dd5a10bbc44","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":77,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"8b1c78e8-1eea-4deb-99b0-ba026ae416d1","block_type":"box","text":"portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":77,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"ca81d870-721b-4b4b-9169-12bdac797127","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":77,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"16b3e6ad-4be3-4d1e-b7f0-fcae0e489992","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":77,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"ee47c08d-b66d-492b-bb6f-43f57073e331","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":77,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"946bfbe6-d7c1-4918-a404-d03fe1202517","block_type":"box","text":"economy.","page_number":77,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"795d47e7-6fd7-4fb7-aec4-d97b52b3661c","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":77,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"c25ea287-26ef-4db3-9d8d-b341cfe5b755","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":77,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"639687c2-dbfd-4fe7-995f-5a4ddcc26376","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding the existence","page_number":77,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"a96950a3-8820-4876-8547-c2b33bdafcde","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of certain Saudi Arabian","page_number":77,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"341c03df-4c22-42c0-a7f9-e96b84b62b8e","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":77,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"cea08631-8b8e-487f-a4c1-dace5cd46bc0","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":77,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"1d68b166-e998-4b11-bc7f-f512f29170a6","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":77,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"24875079-9bad-4248-9284-a27bcb9ef8d3","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":77,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"2264487f-6d8f-4951-a3d1-937e7a793bf5","block_type":"box","text":"typically the case for investment managers.","page_number":77,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"c861f3c1-9dea-48a5-bb82-7ce551f01520","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":77,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"a4ddc9f3-d321-4622-a3d0-51278b884096","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":77,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"dc1222b5-e3c4-410b-884e-91733d5c0775","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":77,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"0f052583-f8ae-4f60-9bff-f9505847565b","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":77,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"24802fdf-baab-4d61-9572-ca2e6cefba14","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by certain groups in the","page_number":77,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"9198ccfe-7bea-4006-9a55-feca141b0472","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":77,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"d4f48917-a9cf-4e9a-a84a-2bf731470b55","block_type":"box","text":"II-39","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ceaa8d83-8ce4-422d-9faa-3fd6d618fe80","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e3fd6560-ad3d-4a44-9e49-f743b61e73a9","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":78,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"b36a7ecb-0db2-4f96-b4a3-d158b983ddd2","block_type":"box","text":"significant, and in some cases the most significant, trading partner of, or foreign investor in, Saudi Arabia. As a","page_number":78,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"2f87ddda-4f12-4c1a-b3dd-f57f73bfc14d","block_type":"box","text":"result, economic conditions of Saudi Arabia may be particularly affected by changes in the U.S. economy. A decrease","page_number":78,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"04187394-de85-4c22-81b0-b9acfc1f70df","block_type":"box","text":"in U.S. imports or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":78,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"25572ac5-2b4c-41b2-8360-b12dcac497bd","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":78,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"ff57994b-fad6-45ee-aaf7-fb11bc5684f2","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in North Africa and the larger Middle","page_number":78,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"6e0f7836-6b8d-4b16-8879-500796996c8c","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":78,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"c3e6056a-07cd-4dd6-9650-e0ea536a8688","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s portfolio.","page_number":78,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"763636f5-3589-457b-a923-def421840668","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":78,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"288f9ea3-3b0f-40c8-869d-bf002319550a","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":78,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"c9619484-8908-4963-b0f0-c9b91147cc17","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":78,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"5926f76a-9016-47bd-a951-11f4544fa380","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":78,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"6c8210d2-0dbb-49fa-bed6-2de30620733e","block_type":"box","text":"will be indirectly subject to those risks.","page_number":78,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"5c7ef8de-5e9b-4fcb-a0a4-cf0f21cfcf5f","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":78,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"ed4cf4cc-60e3-4873-ba43-8181621d2419","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":78,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"a8f31b05-e194-490b-9ff7-ff7adb3b60c0","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":78,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"2f4d4777-fb5d-44de-9aa7-be3ede4722f1","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":78,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"1073a738-39a2-40c8-a48b-488edc505ea7","block_type":"box","text":"on export of natural resources to key trading partners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":78,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"0e8f8e6d-0e1b-4c07-989b-e340ea615572","block_type":"box","text":"key trading relationship that disrupts the production or export of natural resources will likely negatively affect the","page_number":78,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"ebe92047-fcc1-4360-b1cc-485e731b4315","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":78,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"a78bb547-5fa4-4e0e-b553-7f6cbfa1a232","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":78,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"4a06652b-418f-458a-a8ba-466ea5598ba2","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":78,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"bf378f3b-ac66-4c57-876a-bd9f3c6ed2e2","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues between the","page_number":78,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"6da86848-05cd-47ca-a44d-6c616bfd558f","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":78,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"72428354-03b3-4bf6-a9c1-47763f2ea80d","block_type":"box","text":"and sectoral sanctions, on certain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":78,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"56075a13-7516-42af-8d4c-b7d170722396","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":78,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"d1de1d74-e3cb-4fa5-a8b5-ecfdf0f571bd","block_type":"box","text":"against Venezuela in an effort to effect regime change. Military action, sanctions, or even the threat of further","page_number":78,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"4f407451-3b9d-43a8-b080-6ec75caea827","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":78,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"6a7792ad-ec59-45a8-a8b3-41670e6707f6","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":78,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"b6579404-ee78-403b-8d51-462ad4790a7a","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":78,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"adac7456-21b9-49c8-a93b-dd643473998e","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":78,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"840093a4-6179-4b26-b979-b82a9d34227c","block_type":"box","text":"impact on a Fund’s investments.","page_number":78,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"a64b205d-094f-4119-af2b-2a40516bdb74","block_type":"box","text":"Brady Bonds.","page_number":78,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"8cfe2865-123a-4355-aa86-7b1c5b7c7484","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":78,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"a9364eb6-200f-42b0-8fb9-a7c06c8a943f","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":78,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"a6507986-89eb-4e1b-af13-1b07236ffee3","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":78,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"0502118a-8dd2-4434-a555-1394748f7056","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":78,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"442cc1ce-8b98-485c-9b48-a29785a11e69","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":78,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"91c17ff8-20ec-44c8-afc1-cb3c1066416e","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":78,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"8190f490-947e-429b-aef2-3edf06650ddb","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":78,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"a1c43481-35b8-4f5b-a4ac-953625c6dd9a","block_type":"box","text":"2000s, certain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":78,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"16517ab0-ffba-4bac-a730-b94a6f0a1fab","block_type":"box","text":"Venezuela.","page_number":78,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"1f270c93-7a42-42f7-9045-39394be1b09c","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":78,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"5f8f7b5c-567f-4bcb-8c21-eac6796ed4b6","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":78,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"17a27a70-5644-432c-90c6-0ced0688b661","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":78,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"74629294-420a-46bb-a864-804a5eb3649c","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":78,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"70d6173f-7318-4888-bbd1-af9276ba2c43","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":78,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"0df17898-d1c4-4e14-ba25-119ac208232f","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":78,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"b0332617-b6cb-4a89-8af1-a385a202d5fd","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":78,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"135651da-39c7-4c42-b214-c2446647e0fa","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":78,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"3cfdda5d-20cf-4198-8715-4bcab9136a94","block_type":"box","text":"Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute","page_number":78,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"2c80e254-b5f0-4e3a-ae74-c9e4735948af","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":78,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"1b1a9bc7-59b3-48d5-bc7d-58cfe113ccd2","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":78,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"14b89133-9a37-475c-ae1a-791578c80e4a","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":78,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"c442381a-2437-44dd-8a44-93759799564e","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":78,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"a69d300f-14d0-4e55-b4ff-a802d9dbf8ad","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":78,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"064d4322-ac9d-40c3-b5bc-5cd2f40df110","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":78,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"ac25007e-bf0e-4b4b-bc9d-b605e25b532f","block_type":"box","text":"II-40","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"13347176-d17e-41c1-ac8a-219f21a109de","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cdaef1be-2ae8-40d1-b5a1-40d0e17251f1","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":79,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"8856ca1b-090e-4721-b3f7-2dbc11222734","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":79,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"ed9dfd03-c181-4470-8377-0f3df9cb0111","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":79,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"06db812a-f747-4743-81cd-a034115049ee","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":79,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"c90cd478-c307-4233-8206-8c6c3b8be53a","block_type":"box","text":"China Investments Risk.","page_number":79,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"d63d5503-ec3d-4a03-9dcf-d33209c35332","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":79,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"ff10d359-63a3-4226-a93a-4f5b55b2c802","block_type":"box","text":"including certain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":79,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"cad10e77-f242-4ac0-a5fd-1861ad889013","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":79,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"815166a3-2d4b-4c26-9d8b-61869840bb2e","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":79,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"28af5ee6-169e-4f35-b1eb-760ab76eccb8","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":79,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"b4bc2dda-ee3c-49fa-ad34-3a32d9c2a342","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":79,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"2598ba7e-102f-4c06-bcfa-79cd42dff982","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":79,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"a23bedae-d6b8-4111-a1b8-6dded103a9c8","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":79,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"5f333061-f122-45f9-8649-87f66e838aaf","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":79,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"9c2c5d75-3611-426d-92c8-f434a99234a1","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":79,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"9b61b46a-6a21-4027-9350-5c7e4555ab6b","block_type":"box","text":"even further. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":79,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"e8ae562d-3470-4a22-b85b-1d4beb48f095","block_type":"box","text":"Kong may cause uncertainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":79,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"a57327b6-d994-4511-b12d-9e7f78e45101","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":79,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"c1896d08-0e8b-469d-93a1-c8a9578cfa6b","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":79,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"7df8cef2-fd25-4aed-a673-49626c47d890","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in certain","page_number":79,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"37b2f972-e8dd-4d77-b15f-01e043915b00","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":79,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"7d7b3d7a-6532-4efb-88b8-72e2f7cb41ba","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":79,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"bc5d41ff-552c-48bb-9093-945a77b21797","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":79,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"9717bb51-c222-47ba-8b30-32340a740af4","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":79,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"4e49a706-3ac5-48e0-bd0d-9f88b236f3fb","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":79,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"60182c3a-86fa-4b75-99e6-2b7e70b42dbf","block_type":"box","text":"military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks against foreign","page_number":79,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"71224d6c-9600-43ce-b9b4-b3712ae6186a","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":79,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"cd6f9d8b-54dc-43f6-95f6-b778c16a7098","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":79,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"a8c1b7b9-ad48-489c-8334-7f34b59ed814","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":79,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"420faab3-ba80-442b-bcd6-bbb8272a3114","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within North Korea. These situations may","page_number":79,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"a9e2f1e3-7d82-43b4-8a7b-fd9d9a088b14","block_type":"box","text":"cause uncertainty in the Chinese market and may adversely affect the performance of the Chinese economy.","page_number":79,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"8a72d217-6ccd-467b-9901-cd1befe7e500","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":79,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"cebce4ef-1c2c-4b8a-813a-30a547368058","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":79,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"98a0a9c7-042b-42a0-bc41-808709c000f7","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":79,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"f6d72e99-6ed8-41d4-bd72-daf5ff898b2e","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":79,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"28986d36-ec4a-473f-8103-cc25b7bf9697","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":79,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"f83c6cdd-a8a4-4536-8384-0752687884b3","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":79,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"52a5f29b-2b7f-4346-bf93-02e1bfde77ad","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and property or","page_number":79,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"e6fab0db-68fd-436c-8429-d541b027f37f","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":79,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"631fdacd-9ff2-4093-90ca-5723170c6a05","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":79,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"298c3f9b-6b57-4682-b4ca-d611f190292c","block_type":"box","text":"restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks. This may affect","page_number":79,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"5e457334-f99f-4051-bc8d-e6f66a360cd3","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":79,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"13026a7e-36c5-49f3-852f-839ed96db8d2","block_type":"box","text":"Funds. Furthermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":79,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"a531b669-2a1d-41e1-9b32-9f3b108010e6","block_type":"box","text":"affect the performance of the securities markets and as a result the performance of the Funds.","page_number":79,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"ea5cc47a-6207-4804-b97e-2d5427eed99a","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":79,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"642b1410-53d0-44c5-9276-bf49c0a523dd","block_type":"box","text":"brokers and other participants than in the United States. Accordingly, issuers of securities in China, including","page_number":79,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"109d5524-46cd-4dd6-a321-726ddbcabc45","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":79,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"24ca67b5-379e-4795-aaf2-766b1f1c60b1","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":79,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"390503b2-d6f7-4fdc-b348-708c60f13a1f","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":79,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"2628fa57-6192-403f-9f2c-9cf5b58d6841","block_type":"box","text":"information. Securities markets in China are in the process of change and further development. This may lead to","page_number":79,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"533357f7-c728-47e4-9321-069632025436","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":79,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"92c5c641-2ad0-4dda-8349-b6632f61286a","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":79,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"b5a461c3-3250-4e97-a987-ef046471a91b","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In particular,","page_number":79,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"90d71cd5-949c-40c8-a4d4-868fe965826e","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":79,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"be220d29-73c2-4500-859d-ed465b63ae5b","block_type":"box","text":"sub-custodian.","page_number":79,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"0bc66a68-842d-47fa-8013-f87b3dd01720","block_type":"box","text":"II-41","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b8b57f6b-61bc-4d58-b1a9-2a949a05026a","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e00e3f2f-1122-483d-b5ac-a6d4ce0d95fc","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":80,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"43973716-a39c-4fc3-98ec-60166bb8b346","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":80,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"ff3573ea-9c23-4031-a568-cb210dca871e","block_type":"box","text":"on investor protection considerations.","page_number":80,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"368d8ae2-72b7-4166-9e77-0d867aa6d73f","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":80,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"aa66cfba-8396-477a-81a3-8748ecebf2db","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":80,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"a76444a3-73bc-4c72-b4c7-e501eb8d0eec","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":80,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"94c980e6-e619-4bf7-a984-1e07a7d7c51e","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":80,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"48ca2847-a1f1-44c9-8469-016f22e2bf31","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":80,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"e7098c71-4135-4843-8621-50c24f2729e9","block_type":"box","text":"headquartered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":80,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"161f23d1-3baf-499b-93c0-a73c227a0394","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":80,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"45e20d39-3958-4b32-a3a7-bf132fef258a","block_type":"box","text":"performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":80,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"fc74177c-0654-4ef6-8ad1-313d5c459e81","block_type":"box","text":"performed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":80,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"deae56e5-2730-42dd-a17a-8ec8e9b17ce9","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":80,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"efa27186-8b1f-4c71-87bc-39df23903a48","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":80,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"9d7c05b7-1c56-4c6d-9eaf-77c414f977a6","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":80,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"ccab5284-b2ef-4853-9101-7c2180ea6e9a","block_type":"box","text":"accounting firm.","page_number":80,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"738c00c1-6280-49fb-8d63-a45fbef970ae","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange control","page_number":80,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"619463fc-89f2-4e5d-94d4-91823b57ecde","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":80,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"d1e5ddea-d22c-4477-8bdb-4ae12a16467f","block_type":"box","text":"negatively impact performance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":80,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"28ab5107-dfc8-4890-8bd6-37444e003dc4","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":80,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"63f9fb45-ad87-49b2-abc6-7c4861666b15","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":80,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"5a01776c-8df2-40d0-82b2-25fcc8c0674d","block_type":"box","text":"which have a substantial portion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":80,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"d307800d-5fc2-4923-a693-8954fdc3dc62","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":80,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"3c1dced4-6983-4951-ab31-fea8b0393bc6","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":80,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"3185f8c3-b40a-416f-a69b-b5bb656e3966","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":80,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"2ab35d2c-aa7f-447b-b2cb-6d5ea20e962e","block_type":"box","text":"RMB (“CNH”).","page_number":80,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"3e6f838f-5d4b-4327-b759-1e6a33cda2ff","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":80,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"ed19474e-efb4-46e4-a035-6b0346d9bf53","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":80,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"80605692-fd37-4b6b-a151-ffb538434efc","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":80,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"f59c21d2-dafa-476c-bb19-534b125243dc","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":80,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"f42f3e41-89c6-4828-92a0-83b84c1738f0","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":80,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"d60ac434-b8e7-4484-b31e-cad4d0429418","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":80,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"da6d610d-20ad-4323-b285-6eae16ce5425","block_type":"box","text":"represent equity ownership in the operating company.","page_number":80,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"370c4926-eaf2-4b83-b302-e2f44104d810","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":80,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"f241803a-12c1-4f64-9725-9005d95bf85e","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":80,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"531a30a1-06a2-4294-8bdc-d01f1297ec01","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":80,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"7e06a61d-8a50-4ac1-a4ea-8a4cc6a16407","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":80,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"292f11e7-289d-4102-9872-2a8938256e7c","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":80,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"41f7ed4e-b5b3-457b-b482-5fa671314427","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":80,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"793b2fd6-e3c1-4d43-a93d-9ebcefbe2f5b","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":80,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"1baed1ee-e10e-485d-bcd9-e0be1a65849c","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":80,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"59a23611-a848-4b1e-8e28-ca8e6ed4db4c","block_type":"box","text":"company and the value of the U.S.-listed stock. Further, the VIE contractual arrangement would likely be subject to","page_number":80,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"7b5c7e30-a1af-4822-b0ee-1c5b0708f97a","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncertain and could be","page_number":80,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"68d6aaaf-ac37-4e13-8e2a-2af3310a56f3","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":80,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"da76fb9d-45f7-449a-960e-a3d9a907e398","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":80,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"62fcb558-27d8-4f68-8b7d-b6afacc5ea1b","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":80,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"909b1cd8-d41d-494a-96fe-5a1903f225e3","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":80,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"b49046cd-3542-4a68-80d6-9c9eb0492a06","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":80,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"c53654c7-cacb-4009-9b33-e8c3657d1bf0","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":80,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"7714ed39-0ae4-4173-a446-18ef69c29acf","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":80,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"b74c707d-2b83-47b4-9a1b-5edb5f7cb130","block_type":"box","text":"losses to a Fund.","page_number":80,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"957991be-6295-462d-91ad-b8d0929bb991","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":80,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"7730cbff-2aa5-48bd-99b7-4f8a64e55434","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":80,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"b835e78c-d6fe-491a-841c-e29a3ecd1ca8","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading partners over its exporting of its","page_number":80,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"29a9e7c1-c00a-45be-8f56-6d402b611d0a","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":80,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"c190d6ff-f48a-43f6-8081-15d041ebf819","block_type":"box","text":"II-42","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ea1cd2bd-2ac6-49f1-bcc4-6ef92cbc22e8","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b5779ce2-8255-44c7-8a16-fd41b8870c0d","block_type":"box","text":"export growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":81,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"9d4a5eb0-4d8f-4d2c-9838-678fcbbf4b18","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":81,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"0c9cf48d-65af-4e92-94ac-52ca012d8ad0","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":81,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"64dcc7e3-00d1-48be-8207-baca35f8422b","block_type":"box","text":"economies of China’s key trading partners may have an adverse impact on the Chinese economy and the companies","page_number":81,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"e1928722-2cc6-4d0e-a6ef-6f24d3192975","block_type":"box","text":"in which a Fund invests. Certain Chinese companies (which may change from time to time) are directly or indirectly","page_number":81,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"081d2d6b-59ec-4190-a381-c1b3362ecc70","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":81,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"115d8710-7b45-4bba-8650-35dd6b0d700c","block_type":"box","text":"rights or other concerns of such government. For example, certain foreign technology companies are subject to U.S.","page_number":81,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"91146ccb-7a85-4fe2-8714-a9485583069d","block_type":"box","text":"export controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans imports of","page_number":81,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"d644a75d-96ca-47e1-a8d5-70b0cfdf547d","block_type":"box","text":"goods produced in certain regions of China or by certain Chinese companies due to concerns about forced labor.","page_number":81,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"8fed1d6d-21fc-4ce7-863d-4826973c1687","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":81,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"e446faff-a58c-403b-93f8-53b1556ebd79","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could interfere with orderly trading, delay settlement","page_number":81,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"8b826b57-a503-48f1-889f-9e919413716e","block_type":"box","text":"or cause market disruptions. Certain companies may be subject to economic or trade restrictions (but not investment","page_number":81,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"563bd49b-021c-4210-8df7-c88b6353e9a7","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":81,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"5a8fee2a-f7ec-42ee-a9bf-1a745ecfc5b3","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":81,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"7381d20f-6eb1-4bf4-b2d9-889811676084","block_type":"box","text":"such companies.","page_number":81,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"254b7dc8-9133-4856-9776-52896297b63b","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":81,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"1ee7918f-3705-40e0-a469-e9b3c5b8e524","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":81,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"7f87dbd8-cb4d-4508-ac55-54ebcba7a6d7","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":81,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"e9575952-149b-4142-a48c-1ba3056b0971","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":81,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"8e6f72d4-f169-4e5f-b2e0-0e49c72aa6ae","block_type":"box","text":"on a Fund and its investors, particularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":81,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"7aee6fef-0cba-4a6b-bab8-3da2ac3b55b8","block_type":"box","text":"addition, the accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":81,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"da91d797-2403-49ef-80a8-7716d9f412af","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":81,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"e3791ab5-abe1-4a7f-b2dd-985f4208b84b","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":81,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"7d64db51-f3d1-4b0a-804c-8eec1a38ea06","block_type":"box","text":"standards.","page_number":81,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"db17a4af-30f0-4e6b-9aac-06106fa6f714","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":81,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"64bc3982-5219-44a2-b741-f71f265388f7","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":81,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"150f306a-513f-41a7-acc5-e13e1c65c2ae","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":81,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"0bba6e22-ff32-4844-a3cf-2a6d0cfe8feb","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":81,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"b5024ded-d180-4e40-a96a-be9c99fea92a","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":81,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"97ede16c-8532-4fe5-882b-a8f095ad8a95","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":81,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"c8d2ecd1-de96-4414-b88b-975510da8729","block_type":"box","text":"General","page_number":81,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"e686dd7a-9d36-49b2-b64a-2c853225beb3","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":81,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"03e9c3d0-0fe8-43f4-a2e8-cc5b9fcf8ce8","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":81,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"803c1e8a-d733-4b98-86e9-66c18e55fe6a","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":81,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"887658a9-980a-4890-b85a-13af4e502100","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":81,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"21be7691-29ca-4078-a6c5-9d0f7a088123","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":81,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"de11c9a0-0374-4288-a5a8-2d26e284326d","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":81,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"209bcba5-a445-4449-8174-c20ece581c3e","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":81,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"c566b70b-7745-4a61-bb85-3a3da9ba1a9d","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":81,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"a3f32ee4-2f7f-415b-8f1d-005706648675","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":81,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"e10a8226-6125-48d7-a286-42c86ebdfa58","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":81,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"c57f8cf8-ccc4-4e53-909b-06aae293bd89","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":81,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"bbc7b652-b0ce-4947-9765-1ccffde5feea","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":81,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"10ddff9e-0a51-4b6c-bd1a-b06f94c4c6d8","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":81,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"4888b2fd-a659-4a94-8f97-d48a26b97d3e","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":81,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"a5dd2806-6a0e-46c6-af00-3ca39e0add11","block_type":"box","text":"company established by SEHK.","page_number":81,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"41f366f4-031a-4b5b-b42e-e567afea1b54","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":81,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"6d2ef75f-6690-4809-b2fd-c6ddd443b7bc","block_type":"box","text":"through a Stock Connect’s Northbound Trading Link is subject to daily investment quota limitations which require that","page_number":81,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"25cf14af-b064-400b-819d-8a47820a0229","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":81,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"18cffda1-1c31-4552-b8a6-f43e3928359b","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":81,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"3e6e0380-5f5f-41d0-acdf-f13ccfdb1dcc","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":81,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"36fc377a-5cee-4eaa-8761-b451e832917b","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":81,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"9b692408-5dc9-4ff1-91a5-3243cb63885e","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":81,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"977e3260-cb99-4c78-a404-ab5d1f81b47f","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":81,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"6fae4280-75c6-4ae9-b8f7-0f594e0c53fb","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":81,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"6a9f3a2b-6ff6-4fb5-b8db-875c878daf30","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a certain trading day, there must be sufficient Stock Connect","page_number":81,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"4522000a-d67f-4e74-9694-275f2388c8ae","block_type":"box","text":"II-43","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"87ddce0e-2de7-434b-adf9-cb1b32d8e8de","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0fb41749-1801-4b89-800e-1708c33a07b5","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":82,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"61d71335-5042-4654-ae57-1fc2226d42f8","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":82,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"a6c06594-35cc-47ab-8076-695285a0f367","block_type":"box","text":"out pre-trade checking on sell orders of certain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":82,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"53adc338-4391-4776-a62d-5b554e7dfff3","block_type":"box","text":"(“SZSE Securities”) of its participants (","page_number":82,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"7dce824f-db04-44d8-ad5c-0f5b67af6024","block_type":"box","text":"i.e.","page_number":82,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"835d17a4-6df0-435a-b91f-2d535727ce85","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":82,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"accc394b-6496-4028-9946-483637fe722b","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":82,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"47f10256-f687-4dab-baee-31f82e296372","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":82,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"b8f7d093-b784-4e7c-8a1e-4e5ee1efc13b","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":82,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"3d67649c-2337-4e54-b23f-4b23500a721e","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":82,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"8568f054-4549-4056-b757-3bec0e9b744b","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":82,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"8014bb64-a2dc-401d-af53-b8c268838ea9","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":82,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"c7671436-4de9-49f8-ab58-c91ded109b45","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":82,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"5657fcac-ec00-40ea-ba61-97357fab0416","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Further, since all trades of Stock Connect Securities","page_number":82,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"e7d68ff2-d34b-4e56-9cd5-20d4c62e10e3","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":82,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"b7b46b60-6d99-4cdd-9406-863516864b65","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":82,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"0df973f4-521a-43c4-972b-1cc980d5109c","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":82,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"10780c55-53b9-4542-a374-3ceca65a0fa7","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund converts the local currency into RMB for","page_number":82,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"8edacfce-7f64-44af-befc-61b122747275","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":82,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"bc6b79d9-8934-46a9-9bd7-fa5eb7b060e5","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":82,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"cdf71f6d-7181-4121-9fe4-3b157f9248e3","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":82,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"cc057266-598b-4d58-9561-1f7a173cac97","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":82,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"d805e9e6-58ea-4dce-bf7e-0376151f3b1a","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":82,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"57d2b57c-f56c-40ca-9bab-0c2f2a9c8237","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC courts. The exact nature and methods of","page_number":82,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"c124a4e4-6a90-4e65-a4d9-e6ce5f07911d","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncertain. In the unlikely event that","page_number":82,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"7641f869-1aa0-48e1-80d3-1c71ec8b702e","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":82,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"211c9bf7-6dbf-42d2-a98a-c0961ea4596b","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as part of the general assets of","page_number":82,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"a5859028-b2e2-43db-9f62-f2a75a67c94f","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":82,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"b9606bdf-e31f-4223-9bcc-cc64c1368605","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":82,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"f79fee3f-966c-4f5e-8546-690e901ffdaf","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":82,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"04d12625-606a-445e-a2cc-c5dfd39373a9","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":82,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"44f0d1a0-deca-407e-8a7c-a9f70bc72b6f","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps participants of Central Clearing and","page_number":82,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"7af46d3d-149e-4e40-afad-436db64fea84","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS participants to take steps in","page_number":82,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"3d2effdb-a430-4606-9821-ae30ebffe8f1","block_type":"box","text":"order to participate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":82,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"72b747c3-6fe3-44ca-bc89-333f4ec889f8","block_type":"box","text":"HKSCC through participants of CCASS. All voting instructions from CCASS participants will be consolidated by","page_number":82,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"5d78b83a-0139-40ae-a2a2-9851dc4d01d4","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":82,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"3d131cee-8b94-4b6a-8e86-0c442b301cd1","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":82,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"6605f7ad-1939-4c86-9fe7-b7d7f89ac6d1","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":82,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"8bc21b69-fe39-4702-8d36-f87c4d996b9c","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":82,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"e82b3d9f-e3b0-405f-a116-c6cc26562f71","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":82,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"49fa0093-5918-42f3-b8bb-5696ce267028","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":82,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"eaa0a63d-2169-4994-a2dd-245f4a0136ed","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Northbound","page_number":82,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"5f5dd1d7-0b6f-4c66-a1a6-f744625943c0","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Northbound trading through securities","page_number":82,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"e05f70d6-01bd-42c5-af1f-52b32609d516","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":82,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"525eb554-2d3f-4573-8063-5195d5a80a8a","block_type":"box","text":"PRC.","page_number":82,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"5bca8abc-812b-46ae-b58f-026439a9f659","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information technology","page_number":82,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"f7f1012a-211c-42f2-a321-95fbf1a3434b","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":82,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"79de9369-d807-463e-b9d6-6a98da07f237","block_type":"box","text":"house. Further, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":82,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"3a275191-4f42-4e10-b1e8-a849cd602d05","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the part of SEHK and exchange","page_number":82,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"163918f9-544f-4d1d-9184-7c73c535b12e","block_type":"box","text":"participants. There is no assurance that the systems of SEHK and market participants will function properly or will","page_number":82,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"e3539763-b72a-4f4d-998b-c3294d5340ba","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":82,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"c8d2981c-8c3e-45d4-8b8b-26ccdba350a2","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":82,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"25ef80de-a477-4e13-a7a1-518f28bfc8c1","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":82,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"d838abec-ba8f-441c-b073-cbef122602ec","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":82,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"e85c51ba-2e0a-4879-837d-39408d74be05","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":82,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"b8272c2d-a857-41fa-8fcb-582bc6650bf6","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":82,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"682be79f-658c-4991-9619-167e661ef9d1","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":82,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"0b94a8b1-3999-4d75-9298-47db19c125a0","block_type":"box","text":"as a result of such changes. Furthermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":82,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"b0f7841c-23f9-4e35-80eb-35b54c710824","block_type":"box","text":"II-44","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"02053b8d-6744-47e7-8623-0ef8c1fe1e06","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"59de099c-b0e7-4f31-a244-2aa3f18e2cc3","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":83,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"16a391c7-7f11-4acf-aad3-864953731829","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":83,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"ccb83f28-5a57-4c4d-bb6b-eb19adf4de70","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":83,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"ab9a1394-81e0-4a1d-9722-d5ac2e340140","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":83,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"28b349ad-55a7-4f8f-a02e-60b472565411","block_type":"box","text":"other restrictions. Further, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":83,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"48270f0c-1b9b-4b3e-a10d-c95f9a499a6f","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":83,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"865b3a07-a255-42ea-b677-399d82fc0eee","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":83,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"66fe5979-17b0-4ce5-8cc2-5f989932fca0","block_type":"box","text":"Suspension Risk.","page_number":83,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"15a7c126-bf61-4782-8a2d-6c4ecedce37e","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":83,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"3fa4c5f1-053a-4f4f-b918-e0738ef55816","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":83,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"eb86b018-bf45-465b-ad6c-e8bd11833642","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":83,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"787b1076-2ef3-46d9-9258-06a9a49d2197","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":83,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"09a6a43f-0d54-4939-a460-f19c634f9d84","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":83,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"7cc9ce5c-0284-466a-bf67-bf153d24bc29","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":83,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"36aa54bb-7b96-4662-a0ca-125bce3464c7","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":83,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"9b70e1fd-6e68-48cd-923a-93c23628834b","block_type":"box","text":"measures to halt or suspend Northbound trading. Where a suspension in the Northbound trading through Stock","page_number":83,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"02ef2f29-5e42-4778-832b-b73eb792bd19","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":83,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"53aaf4a2-eeca-4bad-b5e3-21d49a900f79","block_type":"box","text":"certain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":83,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"6a24c882-e922-4127-be45-5b2456936fd2","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":83,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"75b55913-1ed0-447e-bc45-345dcc7366b0","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":83,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"572a0076-0319-4791-a355-ffa6e13dd104","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":83,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"b81dafbc-d432-442c-8261-e9edc3ebbe30","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":83,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"94b56edd-1dbb-4b4b-a765-525f01f0c3a4","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":83,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"3876a75b-004d-4ebd-8876-fab5ce14c40a","block_type":"box","text":"A Fund may invest directly in the","page_number":83,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"206cae79-329f-4b70-a539-1481f5d354a8","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the northbound trading of Bond","page_number":83,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"50d6c778-9aa7-41eb-934c-337cdadee9ba","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":83,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"f288ae39-c7d2-446a-b5a7-566bd2bf1c04","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":83,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"b9e5ad01-cb14-4446-9013-8d3c294588c3","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":83,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"18e804a4-2ee2-47ef-bef0-444851fd8a1a","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":83,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"4d53b420-e667-4d6b-8a4e-d3e4e38a5164","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":83,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"b0f445bc-a576-4648-b0c8-2aa0d44a57cd","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":83,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"d477bee5-d942-40ee-83a1-a1ae13f7e4f6","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":83,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"4c18269e-06b9-462f-b029-f712c8f904f2","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":83,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"bd2924a6-399e-4904-a383-8387a78337cf","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":83,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"b840e7f1-00b0-4fe5-aad5-f39f773b2949","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":83,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"91046a8d-90be-4c7e-8673-8c29904aa43a","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":83,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"639a6b33-c915-40d5-9afa-7d5aac67295d","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":83,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"4560b403-6ec6-46ec-ab57-062f414aecc0","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":83,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"baa8c3ee-1f43-4a94-9ac3-36bd8ba6ac4a","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":83,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"5c43ae11-27fb-4bea-8db8-dc0e64f24723","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":83,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"1f7d44ad-69ae-458a-8366-2dbed423d1a9","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":83,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"2e2f959e-8b09-4d7a-94c5-6b6416dd57fe","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":83,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"f7476e01-962b-435b-b26e-6aad0eaa2a4d","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":83,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"61212826-6a9f-4738-b5e1-429d129c18ad","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":83,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"01613db3-9ea0-45c7-9956-6f5642d4f333","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":83,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"ae86e47e-b2c7-436d-bca4-fc8a530d2e08","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":83,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"2c5b0b70-f464-40b0-babb-0e26ee14608f","block_type":"box","text":"i.e.","page_number":83,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"f229d485-96e1-4654-82b6-223f3717d3fb","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":83,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"24dc95c0-38f7-4c50-9060-26c6671b8b3d","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":83,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"c7cebebf-3092-44da-9bd8-c49d2f98cada","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":83,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"e6be04ba-6d29-4f90-849a-12713229fd3b","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing participants","page_number":83,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"67edecb8-44ec-4203-b4c7-b6eeaed0d2c1","block_type":"box","text":"will be limited to assisting clearing participants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":83,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"79c8befe-f758-477b-8320-7dc7c8bbdc4b","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":83,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"4288a6f9-7f8a-4f5a-9431-3d341dcb478e","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third parties,","page_number":83,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"10140437-1273-4f4e-8c22-d2c912ee15a0","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the part of such third","page_number":83,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"01581f28-08dc-4e0a-b924-6346bb9ac888","block_type":"box","text":"parties.","page_number":83,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"a5ec7cb6-40fe-45b0-8c12-f879d6016322","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":83,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"3d9bee5f-5e11-489e-8e87-f9de5b8843c0","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":83,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"28b30721-eac6-43ff-b191-979864905547","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":83,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"9711c694-e218-40ae-85ad-ee4a8443c46e","block_type":"box","text":"II-45","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2b952221-0ece-4303-84af-7adada67165f","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c6d144fe-0356-4a01-94a3-1d8d35c2bf94","block_type":"box","text":"involving a nominee account structure in the PRC courts. The exact nature and methods of enforcement of the rights","page_number":84,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"d1212bc8-fc0f-4297-8346-dc6db7121460","block_type":"box","text":"and interests of a Fund under PRC law are also uncertain.","page_number":84,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"9df47ff0-d447-4acd-ad70-06f7df28b7f3","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of certain bonds in the China Interbank","page_number":84,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"38b14c13-5397-44c0-99f6-f2c42bf48ada","block_type":"box","text":"Bond Market may result in prices of certain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":84,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"3be26713-69fa-4ae5-8b76-d2cea9b8516b","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":84,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"b9d5ba4b-5cf1-4fd9-930c-f7020cec4be9","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":84,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"598bf261-2b59-4c5e-8b3e-06ee9a4945db","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":84,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"c9503a88-8af7-46dc-81d0-939ebe0aa519","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":84,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"2e6806bd-83e8-4b8e-84f8-c8c5f991e2c7","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":84,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"88766596-e488-4d29-96f5-bc079c16369f","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":84,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"846f1e44-0e38-4d66-91a5-719537c50a4b","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Furthermore, the securities regimes and legal","page_number":84,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"00b9757c-538f-4d05-83e4-27b6d824e002","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":84,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"6f1492b8-6840-4b42-aaa8-882dff9cece6","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":84,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"3718bb93-ad0e-4c27-a59e-4f8b20ef1020","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":84,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"6a782cde-0915-4244-b704-5c0db800fa73","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":84,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"76c88fbd-3065-4f1c-a53e-69bfdd81e2fc","block_type":"box","text":"Fund may suffer substantial losses as a result. Further, if Bond Connect is not operating, a Fund may not be able to","page_number":84,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"9bd1f24d-14e7-49f4-9859-3d61b5ae9aeb","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":84,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"603c4f15-3a72-4c54-a480-e627f59b2be6","block_type":"box","text":"performance.","page_number":84,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"70f2ac56-7cfe-4a97-ba3a-d4dd5d4e4135","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and operational systems.","page_number":84,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"7c49fbe4-190a-48c9-abc9-f84b35f8b25a","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":84,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"b1e12103-e242-4acd-956a-b127768986b0","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":84,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"83a1c32d-f08b-4093-8e4d-54614328fc24","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":84,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"815c3dbd-6734-422b-9afb-b1fb86667afa","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":84,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"52457e77-ece6-4dc3-b0be-da4c3af72811","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":84,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"5b80325a-58e9-4724-8190-ee51b9f3f876","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":84,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"c8bac04f-0631-4a50-bb24-6bcd8d005e01","block_type":"box","text":"convertible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":84,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"64b34bc8-c139-46ca-b449-594270465fce","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":84,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"a87b4c92-d901-4206-8d0d-812174f143ff","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":84,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"d68e10eb-f7c3-4fe0-9b5d-03cb9554c3d3","block_type":"box","text":".","page_number":84,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"2bd684e0-f764-4325-b4ce-2badbb0818c3","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":84,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"14f889b0-d0c2-4554-9040-eb0d2c885b29","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":84,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"fd80bef6-bf59-431d-8567-2285c861954f","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":84,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"5c4d4f8b-5a4e-4e96-b6c8-e70695a7152a","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":84,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"026d0c81-e312-4c67-a3b4-4aba7b5136bf","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":84,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"ae4ccac0-9454-4a5d-844f-40c8a9770763","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":84,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"38c1b218-f095-470b-a835-c2cf7e588459","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":84,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"31e77c38-3d72-4269-9e35-8f58f64ef181","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":84,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"dc82d70e-9a77-47d9-975b-0eb354ae1036","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":84,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"4fbdab63-c441-4e22-a84f-46272034c950","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":84,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"6d5e644a-35d3-48eb-8573-833164da98b0","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":84,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"87bc8a9b-a4ef-4d55-9c11-0ad40dc0360b","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":84,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"d8050292-d828-46c4-970d-7268eb9da7a3","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":84,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"8fd796dd-15bf-4ca3-9ded-ebf5b4eadf0b","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":84,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"baf7f434-fef5-415d-bd59-f7b4d44fa15c","block_type":"box","text":"without notice.","page_number":84,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"8ec7a5d5-321a-4c9a-9cd7-fbafe3e39185","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":84,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"2634d8c4-3431-4ccc-9faa-22709e7f7e90","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":84,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"6f1d2a3e-3d4e-41fa-83af-62412b0af778","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":84,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"ff6e0029-8e8a-4233-b090-9b94dbab1ac9","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":84,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"0884fcfd-3456-43fa-bc07-65e92522c7c1","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":84,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"8b6082e9-bed6-45b9-bd67-903deeb745f6","block_type":"box","text":"December 31, 2027.","page_number":84,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"8cf4228d-4fe2-45dc-9a07-fd12802a9691","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":84,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"691d7070-2676-4416-92e4-4cc4e166394a","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the Fund, including","page_number":84,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"26a33cb4-5d91-4823-b144-df86ec28a16b","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":84,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"bdc98b2f-0dc2-433d-83a8-4e8a3eb11bfb","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":84,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"3acc00f5-7988-4b54-a07b-92f5aaaf4f98","block_type":"box","text":"II-46","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"db3b3e8e-7888-42a1-86ee-2342ab748c32","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"410a17bc-3396-4eab-8df1-7bac45051459","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":85,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"b08966e2-8bb7-469c-90f4-cc40ea38d035","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":85,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"71f5883f-ca61-4443-a6c0-ae803ead62c2","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":85,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"4d21c769-c040-4a27-ab2b-a98c78dc7bbf","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":85,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"57c2c1ca-62b9-41f4-9dfa-1a1d5cdc09f1","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":85,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"5cb6a895-b723-4bca-82f4-f2b4823617d0","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":85,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"6c44c7ad-a632-4330-88fa-79500fe10b5b","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":85,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"c3ca41d8-9406-4a4e-8301-45224d755fbc","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":85,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"a16c0db0-a17f-4ce6-8719-698b4310d0cc","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":85,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"6fb23093-902a-40a3-b1b3-853f6ae3b912","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":85,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"ce8bd296-cce1-47fd-9842-8c87f4a8897e","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":85,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"20a52dd2-2d0c-40cf-9b13-fee27ace92cf","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":85,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"fe3c77bb-db15-435c-a993-df77b6f51336","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":85,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"913e1d29-18ff-4b7c-b107-40a317e63e90","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":85,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"5380cf77-299d-4803-8938-4901445b2e58","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":85,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"6e4f4499-ea50-42e3-b0ac-4f905dc45972","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":85,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"ffab104b-420f-47db-a423-8931fb673407","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":85,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"3b82772b-0a10-4628-b413-8e534a4da59d","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":85,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"9f1b8e21-2722-4867-914c-9baae370e9bd","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":85,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"ab8e3628-92d0-4b48-96a2-28e71ae8dc76","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as further clarified by","page_number":85,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"8b75d681-7a39-42e5-8518-8137e4b912f7","block_type":"box","text":"the PRC in notifications.","page_number":85,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"8a2a78f9-71b8-434f-bdc6-d93fc470ffe5","block_type":"box","text":"Investment in Other Investment Companies.","page_number":85,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"dd48a27e-87bb-41ff-abad-e5a2021367f3","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":85,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"39c094dc-bd50-47dc-9ce7-5559fc1311bb","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":85,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"22c89434-9232-4946-9101-98f4541417a4","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":85,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"22336748-6851-4990-b4a0-39bbca480c9b","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":85,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"c02f43e3-334f-438c-8745-c72f897b3c20","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":85,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"51fa4ebc-abf4-493f-b4a8-1234a8bf6a56","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":85,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"087e44dd-8c44-47db-8969-43332a9cd508","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":85,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"cadd35e0-498e-433a-858e-81e51cf82083","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":85,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"2e60b69a-756a-4e92-83ea-4334f17ab0ba","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":85,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"364710e7-180b-4549-a0e2-0f53a1da5786","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Portfolio.) In addition to the restrictions","page_number":85,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"e961317d-6686-4051-8e33-33a03d40fd27","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":85,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"ea469247-9e37-436b-80ea-d67c3c2e4550","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":85,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"9ed6d80c-b868-4fd6-b860-04cf69154230","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":85,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"267e0623-470a-4e6e-8ff7-3e1d2cca28dc","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":85,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"69d94560-53fb-4021-a2bc-fb6b599c9bfd","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":85,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"3fce523a-63ca-4459-91a9-cb5186b6321d","block_type":"box","text":"certain conditions. In addition, a Fund may be able to rely on certain rules under the Investment Company Act to","page_number":85,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"8bf34fae-3111-4a17-8b24-8e339d728c77","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":85,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"1b48afaa-35d4-44fa-945e-ad4f1378ac2f","block_type":"box","text":"subject to certain conditions.","page_number":85,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"76d350ef-e7ac-4340-8d0c-9b12f11634a5","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":85,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"2f97d2c0-b1bd-44af-b51a-696c648a588c","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":85,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"09e14c6d-73d3-4e58-88f7-12443528b312","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":85,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"300d36df-2bf0-4be4-b10b-ed5468e38cbc","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":85,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"75d4dd11-3d80-49d8-b5d5-22e5a0adcd1a","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":85,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"976d92a7-8313-4500-957f-6afe05b43faf","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":85,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"5bb18396-dd34-4f2b-be02-9f630e9e2dce","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":85,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"3bb8fd4a-d1fa-484e-abc1-e1f372150495","block_type":"box","text":"loss.","page_number":85,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"54bf4ca5-f78b-4e89-9095-56418d5f3fec","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":85,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"cad98fe9-bb5d-45d7-a04c-93067cdb0461","block_type":"box","text":"shareholders would bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":85,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"96bab9b3-ab36-4311-b948-3c3a2c9fba5e","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":85,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"3a1e6da5-00ee-4fa5-b7ea-9c73ef00999f","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":85,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"3580b433-83bd-4898-aafd-d9f00d191e74","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":85,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"60c7037b-8098-4edc-b608-1e4f369b0865","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of certain countries will not be","page_number":85,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"730c57c7-e8e8-44f2-bc49-d83d47dfff22","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":85,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"dc97f7ed-c554-4f39-9884-2c969f6f5ccc","block_type":"box","text":"II-47","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"55b26aa0-03d9-4646-a031-e78b5112e784","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"642b21a6-7cd7-4efe-a4f1-7ebc755c2201","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":86,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"65e0d6f8-3911-4d9a-88b7-b653de3db6d5","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":86,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"3061edd7-6603-46d1-ac6a-3fed0a3b4d35","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a portion of its","page_number":86,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"b1af8548-5bb6-46da-afb1-af7b8530dddd","block_type":"box","text":"assets.","page_number":86,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"0abd3ea6-1906-4df0-9c60-d23b5970bd8f","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":86,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"0c5719e6-6765-4969-9976-931e3ed34f95","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":86,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"abed469e-f609-4eb7-b99b-b04d8b322cf4","block_type":"box","text":"e.g.","page_number":86,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"4770a582-44d7-4a31-8a3e-3f712702b44c","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":86,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"2eeb6c6e-22e6-4851-acb9-fb3324c32a52","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":86,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"ddc4af1b-d095-4c1e-b3ca-57fadf6bbef3","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":86,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"253cc9f8-b64d-4b1a-a5ca-5691ab58bb84","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":86,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"14d43177-ec45-44e8-8d50-dc5653ba9886","block_type":"box","text":"investment in developing countries, and certain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":86,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"776e5d81-b3e5-4a8a-8536-60885a5e0716","block_type":"box","text":"have specifically authorized such funds. There also are investment opportunities in certain of such countries in","page_number":86,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"b24d732e-59e7-408c-a178-e2600a878cf9","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":86,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"e2e86f2f-5676-4cfa-8d56-87e07784b310","block_type":"box","text":"investment companies set forth above may limit opportunities for a Fund to invest indirectly in certain developing","page_number":86,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"a6f69d23-626d-4aa2-a807-d378ca8c1d3c","block_type":"box","text":"countries.","page_number":86,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"83dbccfa-8535-46f9-8bdc-8dd998b47079","block_type":"box","text":"Issuer Insolvency Risk.","page_number":86,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"52053b59-ac0f-4b4f-8331-c387b0727850","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":86,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"dcdc38a9-aaf1-41b3-9fd1-7ecc3ca43ab1","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":86,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"c3c157c3-6171-440f-be04-4032e07f1be0","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":86,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"fd4a772e-6d9d-466a-941b-50d7c598e437","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":86,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"78b8b969-e3f1-46d8-82a8-631653ee7e64","block_type":"box","text":"issuer uncertain.","page_number":86,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"d5d77676-b565-4580-bd8a-21813e0f7d56","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":86,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"1adf7dec-4798-429b-9720-42c22adc1e10","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncertainty as","page_number":86,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"8791261e-4fde-4396-b755-d590cf4ed087","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear certain extraordinary","page_number":86,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"8e8f5e55-156c-4790-8902-6534a59109b0","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncertainty as to when and","page_number":86,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"1103ef2a-3708-4bc0-9895-f3aa1f66b1b0","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":86,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"d18e03d2-ebdc-4cb7-b098-dd1e1f7f1091","block_type":"box","text":"eventually be satisfied.","page_number":86,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"cc32f21b-133b-4c12-a5b1-6be1131d5b8d","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":86,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"50dab085-1d46-439b-82ca-87fad880de26","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":86,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"0d05a05c-231a-44d0-a7e9-15da52820a4a","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":86,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"7fafd746-2d87-4733-88a6-4e14b684b984","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":86,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"e5c6455e-3887-4706-bb10-8bd541f477bb","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":86,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"c47c0290-0c04-449a-8521-020dad6b9521","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":86,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"36e79ce1-6c55-492a-aa21-304a52ab8ef7","block_type":"box","text":"introduce greater uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":86,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"0c561d54-4904-4fe6-9a84-d8a82eb92fc0","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":86,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"fc26aeb6-1187-4af4-aae6-dc603741539a","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":86,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"7a7cc936-0503-4948-b82b-89d081c8ce86","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including convertible preferred stock); bonds, notes","page_number":86,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"e0c35414-4b05-4b77-b3c8-96c6ea7be2df","block_type":"box","text":"and debentures convertible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":86,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"e8357572-e83d-4058-b0b1-09d0fc44c6f9","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":86,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"ca4321e8-63d2-4259-a532-2df160608e8b","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":86,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"e41de7c0-5705-4c45-8bea-5795893628c9","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":86,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"2667dedc-8ccd-4ca7-99f3-8644341e3a48","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":86,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"bcd65408-e9e0-4cb6-9fbd-4b493e6b3eac","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":86,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"8aea6e21-5e96-46b5-a232-596a9140127c","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":86,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"722d8879-2964-4d78-8d3c-4bd037561129","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":86,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"46802aff-8f79-4a05-b2ad-289c3496daa0","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as part of a","page_number":86,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"df8e8e0d-8e15-4404-8299-06b2973bb4e9","block_type":"box","text":"workout agreed to by a consortium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":86,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"3252b912-3c19-4cc0-af49-d4cca1755a79","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":86,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"1f8f3cb3-d8f6-4d18-86cc-ef2596c9f019","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":86,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"1cd29ceb-d528-479c-ab3f-8241bf41ac87","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":86,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"fbd82b59-9485-40ad-bbfa-4c307c7c38ea","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":86,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"c9818e94-3651-48ed-9e52-782d667f437f","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":86,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"3b076b0f-35a7-435a-a2f0-31d2f3a5de8c","block_type":"box","text":"participates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":86,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"76f8aa94-be48-4330-8917-ee0beb539e4b","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":86,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"471d8e12-155f-4dbd-9233-1c6ec558beb8","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active participation in the affairs of the issuer than","page_number":86,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"79cf150d-eb22-4947-bb81-e0bc85470c73","block_type":"box","text":"that assumed generally by an investor.","page_number":86,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"7ae7f37b-9f12-4d7c-b7b9-89ed3fbcbd0f","block_type":"box","text":"II-48","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ed59c8e4-a32f-4be6-9117-3d88e17739c7","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a8f24f70-7345-4aee-b74b-20a56390f9be","block_type":"box","text":"Lease Obligations.","page_number":87,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"d57abf8d-a17a-445f-b129-885acf38264f","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase contract, or a","page_number":87,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"59d84e71-b727-4a90-9c61-69b07f9fc61b","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":87,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"b0847165-b923-4b59-98f4-4e2998edfd96","block_type":"box","text":"each entity providing credit support and/or a put option relating to lease obligations.","page_number":87,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"a655e405-8280-489e-952a-f7b5fddd4b12","block_type":"box","text":"Life Settlement Investments.","page_number":87,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"a3eca020-264d-45b9-a919-a6532bc892a0","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties, such as the","page_number":87,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"c64458e7-b7b9-473a-a8d8-fab07f26b22c","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":87,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"dbb865dc-f5a0-4a96-a310-a7f646908408","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":87,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"daedc547-1adc-4ab9-9948-ca9d62b831e1","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve certain risks,","page_number":87,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"6a5761c2-cc56-45e9-a92f-e8d9f0d86730","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":87,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"86d8cc87-23a5-452e-9e08-7dc9cff0cded","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":87,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"c04a6643-31b7-444f-baf2-6329da6a10e7","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":87,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"54bd9b1d-3687-4999-a3b9-340f533eccf8","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":87,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"a6df2bd5-be90-4dc8-8551-ec8370f8018b","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund may encounter","page_number":87,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"271eda81-873c-4219-8899-db87cd8d08b3","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":87,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"9007f3aa-502b-41db-a4d7-40dda5e871af","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":87,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"5d07b41a-6aa5-414f-a578-a13b170060f3","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":87,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"c8543538-65a0-4886-9a7e-f298813e1c68","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":87,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"3bc749de-f59f-40a3-901e-9e714c5eeca9","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":87,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"71259b54-9a3c-429b-ab0d-21232375f2d6","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":87,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"dd8f8949-c37e-4866-8896-2822e2708ac3","block_type":"box","text":"Liquidity Risk Management.","page_number":87,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"5fa06bf5-4c04-4d4e-bb8d-0e8462be9f8c","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":87,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"5441e764-c569-4911-b3ce-05e7a0e759b1","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":87,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"08be37cb-2a6c-4770-bf55-a226fa53414f","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":87,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"000a271a-bc98-422b-92ce-2695aeb318a5","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":87,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"dc0e28dc-18d8-454d-8f62-981754c6cf42","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":87,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"39c257fb-1d9e-4e9b-bc2a-2a204872d2ec","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":87,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"de81331e-bbb3-4126-b4d8-137be8821540","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":87,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"7252555d-8ac3-4e6e-a9f9-11d89bdb711a","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":87,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"1873c1e2-959c-4010-8110-8a15d107a57a","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":87,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"d99341e1-9a23-40ef-837a-c91a20da16c3","block_type":"box","text":"liquidity of a Fund’s portfolio investments is determined based on relevant market, trading and investment-specific","page_number":87,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"bb95c4b2-49d8-4313-9be6-5f7823806b39","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":87,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"6780cc9a-4929-4143-88b3-f788681ed519","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":87,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"de5cbda8-2ad2-4af5-9567-b443774abd55","block_type":"box","text":"Master Limited Partnerships.","page_number":87,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"6a4bd9b9-67e6-4429-9cd1-b9ef3460d9e6","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships (“MLPs”)","page_number":87,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"8e21e05d-957e-4794-bfac-f1b12f5a8256","block_type":"box","text":"which are limited partnerships or limited liability companies taxable as partnerships. MLPs may derive income and","page_number":87,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"7cc6c37e-4822-4e00-a85a-3b552abe33cd","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transportation (including","page_number":87,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"fa576901-38bf-4b57-8145-dd49bba73a0e","block_type":"box","text":"pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":87,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"9b08a22c-9158-412a-81b1-1b45f70b412b","block_type":"box","text":"generally have two classes of owners, the general partner and limited partners. When investing in an MLP, a Fund","page_number":87,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"952f38ab-ad2e-4b28-a6cb-2f7638dada3e","block_type":"box","text":"intends to purchase publicly traded common units issued to limited partners of the MLP. The general partner is","page_number":87,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"e2d8cdae-45ae-4bb4-84b6-d9abf12996ba","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":87,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"460ca419-4c31-41a7-a827-2731c78672e6","block_type":"box","text":"owned by one or more of such parties. The general partner may be structured as a private or publicly traded","page_number":87,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"55eac5ae-867e-4050-8b5d-255710c9c1d3","block_type":"box","text":"corporation or other entity. The general partner typically controls the operations and management of the MLP through","page_number":87,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"9552bbb6-83c2-41ae-9332-a34d0bfa6b89","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":87,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"51320115-80c8-49a2-a04a-5c7c75c3ae9d","block_type":"box","text":"Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role","page_number":87,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"801f9a0a-12f1-41b0-adbd-31f626b56cf6","block_type":"box","text":"in the partnership’s operations and management.","page_number":87,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"846a5c90-4cb9-4235-a6dd-ec85b0efe145","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to receive","page_number":87,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"28b0f9cc-dbf8-4856-8656-e9e50c57f3fa","block_type":"box","text":"quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”).","page_number":87,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"05aed980-2df6-45f0-a659-9dcf4bb5c0b0","block_type":"box","text":"Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":87,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"26ad8a3c-0fb0-4496-8c0e-8099fe83f166","block_type":"box","text":"Once common and general partner interests have been paid, subordinated units receive distributions of up to the","page_number":87,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"7525daf9-274e-4ecf-adae-fba4bc77cf62","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":87,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"46ff2053-6a86-4542-9a7c-98bcb5b258b8","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":87,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"96654e7a-a827-4685-b478-24bf3839f9d1","block_type":"box","text":"The general partner is also eligible to receive incentive distributions if the general partner operates the business in a","page_number":87,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"cf958fc3-7c4d-4b3d-b7aa-b13bc766b881","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general partner","page_number":87,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"b829a55f-bb91-4b25-83c8-084666adce5c","block_type":"box","text":"increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of","page_number":87,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"7298fe8c-2c1d-4d4d-8f71-e980d3972fb2","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where","page_number":87,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"ab3c4f99-d727-44cd-bd45-cc20e00cf167","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":87,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"fa21f2d9-3d2e-4b74-9c79-37cdaf84ff16","block_type":"box","text":"distributions encourage the general partner to streamline costs, increase capital expenditures and acquire assets in","page_number":87,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"270ee42b-057e-453c-a91b-cfb2517285d5","block_type":"box","text":"order to increase the partnership’s cash flow and raise the quarterly cash distribution in order to reach higher tiers.","page_number":87,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"b1b9dc5c-0ae5-4041-bfed-3d639596945a","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":87,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"938e33f5-42af-4a64-a2fe-310ab4faf906","block_type":"box","text":"II-49","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cdbf2863-51b9-4402-b598-dd31cce9c2ba","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e5f2e392-7a1d-40ad-b218-14071f9da15d","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and traded on","page_number":88,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"b9f29bb6-8ba7-41ec-ac7d-c957ef948a2b","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":88,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"75018eb3-50a7-4fcc-b359-e913c7c4a26b","block_type":"box","text":"success of the MLP. Certain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":88,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"57e82942-a88f-4ccf-b9e5-871d6959d709","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":88,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"84362e5c-9cd6-41ce-8655-bb6a0efbf1e5","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":88,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"d7b9a15d-bd80-49d7-a09f-32b6c9c3f8ce","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":88,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"9df980c1-dca6-4484-a265-75560ed7d6a8","block_type":"box","text":"Merger Transaction Risk.","page_number":88,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"017c2602-3abd-4d10-8abe-89cb4929173e","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":88,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"1e8910f0-3d0c-462a-a33f-f942733a40f4","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":88,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"19a871e4-427b-4d3e-9136-0b4831359494","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":88,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"7031aa7d-f907-4130-a23b-b036108cbaf9","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":88,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"40ab4c12-8ed8-4ba6-bbc7-8f2f5b71a01a","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":88,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"8aadbfa4-7025-4a33-bba3-82ec4fea4f07","block_type":"box","text":"the Fund and may lose significant value.","page_number":88,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"998f0e42-89b0-4113-a0c1-2758021ca7a2","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":88,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"e75fb5ba-83cf-4fce-8a1b-d8a5a31d6da4","block_type":"box","text":"Certain","page_number":88,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"fa5361ab-72fe-4d31-982c-f00d47995d07","block_type":"box","text":"Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’ acceptances and time","page_number":88,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"8c0a96b7-1d02-4440-a2c9-39922b10ddfc","block_type":"box","text":"deposits, including instruments issued or supported by the credit of U.S. or foreign banks or savings institutions","page_number":88,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"496ed684-1957-4092-a7d6-6f88f75c76f8","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":88,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"b6a1c34a-928a-48fc-bf43-105a9ad47b12","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":88,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"61f3a3de-1a9c-46c9-8a61-7e697c00e2a4","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":88,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"3c68602b-1ebf-4f1c-902f-9024a2633a85","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in short-term bank","page_number":88,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"a5234150-f60b-43f3-a237-f30e6daaefbe","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":88,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"d1b5615a-2a66-447e-87ab-f1638e40cdc5","block_type":"box","text":"branches of domestic banks.","page_number":88,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"5aa19341-551c-4692-9c02-197a28cde3b0","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":88,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"2b9adb97-34c6-4f9d-9b8c-ebd60720fc7c","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":88,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"49bb1b3b-06b0-4562-84fd-586264675a35","block_type":"box","text":"Canadian counterparts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":88,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"4e4329f7-e513-4122-99ff-d00a9a5abfed","block_type":"box","text":"paper of a foreign issuer.","page_number":88,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"344e1edb-6169-4bf8-931d-e52e6ad59a05","block_type":"box","text":"Money Market Securities.","page_number":88,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"b8c3d9f3-26b5-4d75-9636-1a6ed583cf51","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S. dollar","page_number":88,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"7d60e501-9ce2-476a-8d3f-081c79a22726","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":88,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"5470e3d6-02f0-4114-9390-3539c1a61caa","block_type":"box","text":"money markets. In particular, the Funds may invest in:","page_number":88,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"4c3903f8-9057-4975-8beb-87aef2b75838","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks or savings","page_number":88,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"2ab41339-82b2-445d-b07c-a3a226a14c25","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":88,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"cc511874-7e1b-4ce4-96e4-e9375405972a","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":88,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"bc9d7b55-9c06-4d1f-ae7b-b569c5e0f65e","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":88,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"4d50b1b0-77f3-44a5-af56-e59f2af78e64","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":88,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"8acd64d3-c7e7-463a-8b08-e8acc37b66df","block_type":"box","text":"agencies;","page_number":88,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"7627e683-0e1b-4449-afee-88dea34db8c4","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":88,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"399a467b-c733-40f6-bc98-d554b0a8bdee","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":88,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"bbabf44f-b1c2-414d-aaff-fa48bfe703a0","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment purchase","page_number":88,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"07d3bc28-522e-47e9-9e7a-0d95aae38662","block_type":"box","text":"obligations and credit card receivables);","page_number":88,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"ed3fcad4-76f0-4048-83d9-900a9f2d9e59","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":88,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"a6c0ae7a-a0d3-4454-ae89-51fcc60111af","block_type":"box","text":"authorities and related custodial receipts;","page_number":88,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"085ef40b-99b5-4fb0-be60-87e17c5187bf","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":88,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"8ff1c721-7022-40e6-a70d-255da6d62412","block_type":"box","text":"agencies or authorities;","page_number":88,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"ab2c5b17-92c8-4e29-aecd-b775473d6b0c","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":88,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"9a822149-cb5d-48b9-b70a-ed7be1a9a07c","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":88,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"a0d321ed-c844-413b-a492-969163c51281","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":88,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"7643e4cc-9d13-4299-be5a-d4fa2cb25395","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":88,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"79d88a23-3789-49a9-af14-3b7193b07809","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":88,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"bba0e5d1-6725-4a89-959f-3f6615fffdc9","block_type":"box","text":"States;","page_number":88,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"4a8cfe82-6bba-4315-993a-1940ca194151","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":88,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"e7ee189e-ad27-4f9f-880d-75e2f4beafa0","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":88,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"165295d0-60b9-4407-a933-35e859531baf","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":88,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"a1aee2bc-bd54-4725-afaf-17e29968c82e","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":88,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"90f09186-b096-45ce-9bb2-859c6d27de37","block_type":"box","text":"II-50","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2c9e12f1-8e74-434c-8072-8738448632e7","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cba6c492-6b4d-479e-8599-4d05cd2b444a","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":89,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"4bda562b-9a50-4e92-960f-cffb28854ee3","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":89,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"8e793cc0-2e11-4dec-9b4e-80f94bf4cb1d","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":89,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"70f62e3f-ee2b-4644-a08c-fdb7a5430b89","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":89,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"059a760e-48db-4877-8d40-8a35d7094f02","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":89,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"468aad52-6d0c-4ae8-b95c-3ed179ffab55","block_type":"box","text":"States.","page_number":89,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"63feade7-997d-4c4d-bb2c-9a43311edf72","block_type":"box","text":"Mortgage-Related Securities.","page_number":89,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"523f51d0-8d99-4230-89dd-0d2e473b533d","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":89,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"b1039577-fa29-465b-a406-6b7ba2fe7fa6","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in which","page_number":89,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"20558271-9574-427b-83b7-74ea9a04d87e","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":89,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"b08e07aa-b59e-45d1-b2aa-afd31ecc7921","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mortgage loans that underlie the securities","page_number":89,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"a9452f96-f95f-4548-ade1-eab38091c4c8","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mortgage-backed securities differ from other forms","page_number":89,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"6b895a97-51d6-460c-b6d6-d95babf04ea4","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":89,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"f6604729-4188-4d14-a75c-818bbb2d3406","block_type":"box","text":"maturity or specified call dates.","page_number":89,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"7011006d-690e-4a10-933f-8352661e981d","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":89,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"1730d45c-16e1-41b4-bdb2-5158bb75b634","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mortgages relates declines. In","page_number":89,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"806e6fc0-eaf9-4189-8431-1f83b346a216","block_type":"box","text":"addition, investments in mortgage-backed securities involve certain specific risks. These risks include the failure of a","page_number":89,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"8211c72b-2b7a-461b-953a-cf164a6b36c8","block_type":"box","text":"party to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":89,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"8cf7aea0-5dd6-4b05-ac05-1ba02bc3d762","block_type":"box","text":"of prepayments on mortgage cash flows. Mortgage-backed securities are “pass-through” securities, meaning that","page_number":89,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"27dcdb71-ce98-45b4-9503-0769fd95c04b","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":89,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"67707533-3cbc-4aa4-a8e4-8925f0489dec","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly sensitive to changes","page_number":89,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"6d19706e-af8e-46b7-a2ee-de270ba09c6c","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":89,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"92574309-c869-40a1-917f-3ce77c706425","block_type":"box","text":"successfully may depend in part upon the ability of the Manager to forecast interest rates and other economic factors","page_number":89,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"1d162c71-1c3e-4b33-a587-65242a6a0692","block_type":"box","text":"correctly. The value of mortgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":89,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"3572d767-9263-416e-acfe-12007ebfec1b","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mortgage-backed securities differ from","page_number":89,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"6d9f889b-1440-4ee5-b21e-8cf3f4597bf2","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":89,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"d3353847-f7b2-4ddc-a24a-ce4df5b34606","block_type":"box","text":"for its mortgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":89,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"ec6e02d5-4862-4ac2-a27a-2216899b7f88","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":89,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"38dafd9d-dabe-4c80-b964-e9b487050a3f","block_type":"box","text":"underlying mortgages. In a period of declining interest rates, borrowers may prepay the underlying mortgages more","page_number":89,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"6c64ccb8-0157-44ce-8d92-489055a7bf9a","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mortgage-backed","page_number":89,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"761aea39-cb51-4ba6-a484-cf62aa261f34","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":89,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"a9333acc-45aa-4b3e-ac0a-d505d80b7cc3","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":89,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"29432622-919b-4d34-bc95-1369c67dd626","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures and","page_number":89,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"55789750-4625-4441-a92c-e47e5781d50a","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":89,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"e5a03ad0-a13e-4f41-a570-3385395fb5ae","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":89,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"143c8c98-6de0-4466-b46a-f6bb26775a4b","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":89,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"6e7133f4-2eed-4f20-87bf-30c2bd900d48","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mortgages may occur at a slower than","page_number":89,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"e780a6a4-eb8f-4927-b5cc-e8a9040a81e0","block_type":"box","text":"expected rate, creating maturity extension risk. This particular risk may effectively change a security that was","page_number":89,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"81ff1c37-7008-453d-9d70-a10688cff2a4","block_type":"box","text":"considered short- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":89,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"db30e7ca-69e0-4d25-9015-bf9f514378e5","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shorter-term","page_number":89,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"cb372ff2-804a-45f8-acb7-fbd343d44e88","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":89,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"1dd4b4a9-4415-4a48-b557-983d242cd0ae","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities notwithstanding","page_number":89,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"636b1fac-9e81-4b6b-b1e8-f481c0e0850b","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":89,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"d77e55ac-e5bf-4822-bfe6-f74ffd2edae6","block_type":"box","text":"There are currently three types of mortgage pass-through securities: (1) those issued by the U.S. Government or","page_number":89,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"14a2cdcc-8033-4616-9696-c2ef5ede6d12","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mortgage Association (“Ginnie Mae”), the","page_number":89,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"1d524556-47cf-4b02-9ae7-a99ad10c630b","block_type":"box","text":"Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie","page_number":89,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"f2849533-5b58-481e-beb2-d531ceffff6a","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":89,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"9bb965d5-dd62-4138-84dd-1038dab25d56","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":89,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"80a80823-7c40-43e5-9a66-4aad37316527","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mortgage loans or pass-through","page_number":89,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"c5f159e8-ee4c-4516-bdec-a36741092395","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":89,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"2bf7dac7-4689-43f9-bc67-9ff85083cdf4","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and Urban","page_number":89,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"0fe1365e-ce3e-48c4-bec0-2bddfe0744b2","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":89,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"08b134e6-b6c1-4ccb-9008-8d7abd2ebd9f","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":89,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"42a2d62b-5977-4d6d-87c8-c4160ce4ab15","block_type":"box","text":"and loan institutions, commercial banks and mortgage banks), and backed by pools of Federal Housing","page_number":89,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"6c20adf6-338a-4e39-9df2-920f7eb51091","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mortgages. Pass-through certificates","page_number":89,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"c67f3a2a-e3b5-4525-ba73-9edec0e7a06f","block_type":"box","text":"II-51","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2a6e9f2f-1ae4-42e0-9431-18a12cb67c0e","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"af525d55-9296-4165-b960-ff572bc8408e","block_type":"box","text":"guaranteed by Ginnie Mae (such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":90,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"cd4d3bbc-3e30-450d-87b8-6cef30a8601e","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":90,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"4b965965-9985-444e-b86e-21742605e622","block_type":"box","text":"States. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":90,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"67d0a224-0d1f-4fb7-a66e-5aa687be4919","block_type":"box","text":"Treasury Department to make payments under its guarantee. Mortgage-related securities issued by Fannie Mae","page_number":90,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"37c8d582-5992-4438-8c17-213407c648ae","block_type":"box","text":"include Fannie Mae guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”), which are","page_number":90,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"3947c007-20dd-4048-9a72-b9c753fdcbaa","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":90,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"8d5167e1-2f8f-42c2-8d38-4378de3a9372","block_type":"box","text":"faith and credit of the United States, but are supported by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":90,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"a6260b34-4936-4b95-9dab-effd4961344e","block_type":"box","text":"Department. Fannie Mae was established as a federal agency in 1938 and in 1968 was chartered by Congress as a","page_number":90,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"ad19b1a1-7da4-463a-b65f-5b45772c073e","block_type":"box","text":"private shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":90,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"b551b008-1acc-451e-9092-8d919448d140","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":90,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"8e74165a-4e1e-4a6d-acfb-4c7f76231944","block_type":"box","text":"corporation chartered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":90,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"d6d948dd-e022-4d6a-bd8c-714a6bfd502e","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":90,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"99501dce-5fa8-44d7-bcb9-ceb2398f516b","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":90,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"1f382c16-811b-4b56-a394-2a8c3f0a79d9","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans.","page_number":90,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"ee5e4ab5-5df6-4216-bec1-873ceda6ceae","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":90,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"398608f1-41d7-4bfd-a080-383c171ed3e0","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mortgage, but","page_number":90,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"03642269-c368-41a5-a406-df72c34582e6","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":90,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"ba3dd3df-e310-43ff-9d5b-4f508588209e","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":90,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"6ee0ea06-07d6-44ec-9fc7-d889f93b559c","block_type":"box","text":"mortgage pass-through securities and are issued by originators of and investors in mortgage loans, including","page_number":90,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"54c2744f-c9dd-43d9-87a7-e4fb8c1e3c62","block_type":"box","text":"depository institutions, mortgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":90,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"69468f70-c3d7-447f-9da2-3cfe21808881","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than government","page_number":90,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"3657d305-bb21-402d-b2f8-46330f1e5e86","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":90,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"1ff4d2d3-4fe6-440b-82a6-e4630f7ade87","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be supported by various","page_number":90,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"ff839b4f-0f17-4f9a-8246-b7a046a55ae4","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":90,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"e1d3fda3-1fe6-4272-80e8-fe3e52b48054","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mortgage poolers. The","page_number":90,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"caaf6a86-b02a-46ff-ada2-94a98b812798","block_type":"box","text":"insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether","page_number":90,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"8fdac704-9f09-4ef4-be8d-1019f5a7fd88","block_type":"box","text":"a mortgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":90,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"fda8d60b-b0f9-4f3e-ade9-937ecf4ba8cb","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":90,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"6acb974b-7187-42f0-8368-02c6d03a35ef","block_type":"box","text":"mortgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":90,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"29ededa5-9d40-4a7e-86f4-92299ae5864e","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":90,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"1b170a9c-c52d-4651-a1a1-8bde5792a224","block_type":"box","text":"meet a Fund’s quality standards. Any mortgage-related securities that are issued by private issuers have some","page_number":90,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"9188b8a3-f3cf-4e72-8856-f3d007730154","block_type":"box","text":"exposure to subprime loans as well as to the mortgage and credit markets generally.","page_number":90,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"af10ad8a-76c4-4ccf-a541-544bb003f2c5","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":90,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"974ad476-be23-4287-b6b2-c9f89ced4c6d","block_type":"box","text":"requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a","page_number":90,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"79cc5dff-9f9f-44af-b7d4-8b256f82dd80","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage","page_number":90,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"b98ae9fb-c317-4a88-95b4-6ac526b7a4e2","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":90,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"ebde4da3-c856-49a8-94ec-92e2d9476eca","block_type":"box","text":"characteristics than government or government-sponsored mortgage-related securities and have wider variances in a","page_number":90,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"9ddc6148-160e-40b5-8246-b28b6373d992","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":90,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"4a13366e-8706-4f6d-9d95-431194f59e16","block_type":"box","text":"frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon","page_number":90,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"a60cc423-a5c2-46b1-8a97-494b02a9734d","block_type":"box","text":"rates and maturities of the underlying mortgage loans in a private-label mortgage-related securities pool may vary to","page_number":90,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"e9b58e07-db4e-43c6-a53e-a8833d749ad2","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage","page_number":90,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"aeec8eec-8976-47c1-8e25-e00373b86b5b","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":90,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"023892e3-0123-4741-a423-348929d99cad","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":90,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"82844073-c3c4-416c-8c1f-1f5aec2ac745","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":90,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"f0821de6-8fb0-4857-ad47-9251235a11ee","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools that","page_number":90,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"06195242-f408-485d-928c-ddfc6d9bd551","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan","page_number":90,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"c12e149c-8b45-4785-8c81-d67cb0451391","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":90,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"ba59c239-d61d-4e79-8690-12df0db09ed8","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mortgage","page_number":90,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"e6c60370-07dc-44bd-baf5-bd2c9a7099aa","block_type":"box","text":"payments by holders of adjustable rate mortgages.","page_number":90,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"1c9864fa-bb59-4572-89d0-974b18419178","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited market","page_number":90,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"5e2fd39f-efb5-49eb-ba89-90e7e27e77e4","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors.","page_number":90,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"b57639cf-dcb7-4930-b8d3-d0e58ea444cb","block_type":"box","text":"Without an active trading market, mortgage-related securities held in a Fund’s portfolio may be particularly difficult to","page_number":90,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"df10e101-b291-49a6-9b12-86706612aee4","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mortgage loans.","page_number":90,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"bde0b54c-4bb1-4bff-ac6e-3548d9162b29","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":90,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"c8bcb993-6443-463c-a8ad-1a22badf8c71","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":90,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"54bab17e-a91f-49f3-815a-d2ced206eea0","block_type":"box","text":"commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest and prepaid","page_number":90,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"77066889-9e04-4fa8-b1eb-6676b8b57ebe","block_type":"box","text":"II-52","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7d16f86a-3f0b-4ed5-8c56-7c4e347d5a4e","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0984c431-1813-41e0-9e8f-36b85d69f6c3","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mortgage loans or private mortgage pass","page_number":91,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"2353a235-35ca-49ca-9b44-d184776249f1","block_type":"box","text":"through securities but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed","page_number":91,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"af98a46d-970e-45e0-9c7f-66e0a6ba8e8e","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":91,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"6b3bc7f8-98b9-4bab-9322-090c183fe73a","block_type":"box","text":"Mortgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":91,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"d985a5cd-24c1-41a3-ad4e-fb4598437e3d","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":91,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"817606d9-a6d1-41b2-b293-1ef08c728494","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":91,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"5a82ed42-8a42-4240-89f9-18a27b3eedf5","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":91,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"742aea34-7bf3-4459-a939-bc3800424bb2","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":91,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"acbbf81a-2aa7-4928-b307-856320e47338","block_type":"box","text":"de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly","page_number":91,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"8cf817fe-5a51-489f-b8fb-d28144e101f6","block_type":"box","text":"payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":91,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"b81bf9d4-07ec-49cb-9ffc-0179090881a1","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually receive principal","page_number":91,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"d1f0b28d-a392-472a-9e7e-8ab5d3e620ba","block_type":"box","text":"only after the first class has been retired. An investor may be partially protected against a sooner than desired return","page_number":91,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"d325b8f7-3039-4f16-acf3-6f825ef718b9","block_type":"box","text":"of principal because of the sequential payments.","page_number":91,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"46afed09-447f-415b-8598-9e2f09d0757d","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":91,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"0b3a6683-08f1-4d49-a960-bab449224d77","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":91,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"7cffc6e0-9121-4602-8c76-aee912b1099c","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":91,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"15c1cef9-8656-460e-b67f-4425a879ea26","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in certain other qualifying CMOs, which cannot or do not rely","page_number":91,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"a0a6e9c8-15ed-442e-bef9-473f5b23ee67","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":91,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"cca72e80-18ad-4ab2-b0d8-b009f252d154","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":91,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"6bc4c82e-8d1d-4c9a-b960-a506133a9c17","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mortgage-backed securities; (2) do not issue redeemable","page_number":91,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"90303abc-1fa3-4b84-a50b-fad0b06539d6","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":91,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"6b2a2399-06b5-4636-a635-cb45d68368c5","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":91,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"e96b205c-dd15-4a3a-a608-33b8b5995326","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":91,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"60ade542-8db4-4509-a05e-5bf6d52e2c67","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":91,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"50230170-65c3-4e4f-93de-a0904871b460","block_type":"box","text":"securities of any single such entity.","page_number":91,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"bf7f3ee3-ac1c-40ab-bb48-f5278ec8cd37","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":91,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"01425672-3e6c-4e77-8c52-0a786e5e3daf","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":91,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"31124216-aa85-4009-adc2-942eb234d51c","block_type":"box","text":"concurrently on a proportionate or disproportionate basis. These simultaneous payments are taken into account in","page_number":91,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"9ba7fc6f-0cd7-452e-8fd4-eaf9898903ae","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":91,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"89558287-2538-4d72-ac95-e929d7feed9e","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Certificates may be issued in the parallel pay","page_number":91,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"99f8dfda-f034-4f61-bc37-d42963f3107a","block_type":"box","text":"or sequential pay structures. These securities include accrual certificates (also known as “Z-Bonds”), which only","page_number":91,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"971d9443-e1c1-4710-a74f-e5a84b0d9010","block_type":"box","text":"accrue interest at a specified rate until all other certificates having an earlier final distribution date have been retired","page_number":91,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"47997c01-ebcf-4593-91d6-2be405955e66","block_type":"box","text":"and are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":91,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"9ef38847-e26c-4375-a2d9-ee642627b06f","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":91,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"e2b53d4e-6cbf-48e9-bfbe-796b727d2059","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":91,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"a90789f6-7c82-4d18-8f4f-1e9aaef871ee","block_type":"box","text":"Classes of CMOs also include planned amortization classes (“PACs”) and targeted amortization classes","page_number":91,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"094e6c2f-8433-42b8-995d-7eb1342edd95","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":91,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"b9c8c125-841e-4c3e-ade1-4a68f98961c5","block_type":"box","text":"scheduled principal payments for PAC Certificates generally have the highest priority on each payment date after","page_number":91,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"dbc85341-04fe-4c86-95c2-0d84bf441634","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shortfalls, if any, are added to the","page_number":91,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"935ec1d5-fcf0-4e11-ad17-8d00c56a6435","block_type":"box","text":"amount payable on the next payment date. The PAC Certificate payment schedule is taken into account in calculating","page_number":91,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"3d954c42-efd1-4ec2-a656-d8b5f853f241","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":91,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"e515cf29-51d5-457a-b6c1-a69d448f8db7","block_type":"box","text":"be created that absorb most of the volatility in the underlying mortgage assets. These tranches (often called","page_number":91,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"3b324aa3-841f-4091-8566-6b5d38034066","block_type":"box","text":"“supports” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":91,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"67ebc612-8e48-45c6-89ef-9ad1075fe115","block_type":"box","text":"classes.","page_number":91,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"1f80240b-c0d0-426f-b079-aa11835b8f97","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":91,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"82854d5e-c377-486d-9b10-c9486abc1801","block_type":"box","text":"date to one or more classes of REMIC Certificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":91,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"ca427eb4-ff1a-42e6-b297-6e6197ebcfd3","block_type":"box","text":"prepayment rates on the underlying mortgages do not exceed certain ranges. In contrast, a TAC provides investors","page_number":91,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"0ddc0516-a797-49e8-93e8-eaa5d8112775","block_type":"box","text":"with protection, to a certain level, against either faster than expected or slower than expected prepayment rates, but","page_number":91,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"da334e6e-ac5a-418f-ae64-f2fbabbe3eef","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":91,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"bb591f95-8d0a-428f-a979-0eda144b4c49","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":91,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"5d0b5c26-03e2-49c3-8aec-26ce87a90561","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":91,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"27a4b6c7-24dd-4ff5-b555-7d38ac2769fe","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through securities","page_number":91,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"e41e8ad1-2d13-4d85-86ba-f9447139afc6","block_type":"box","text":"collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mortgage pool","page_number":91,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"f28ee5f3-ef4a-4a77-ab36-59458810dabf","block_type":"box","text":"generally provide for a fixed initial mortgage interest rate for a set number of scheduled monthly payments. After that","page_number":91,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"b29d73e3-9b7a-4cf7-a40a-5734a1ac4570","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":91,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"82e3c75b-acf6-4ec9-a84b-a6ba82873cae","block_type":"box","text":"to a designated benchmark index.","page_number":91,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"76f31d6a-3cd7-493f-af35-969b7ece3b18","block_type":"box","text":"II-53","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"832a179f-b62c-42b3-ace2-10f89565ab6a","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"27f7d2a9-05d2-40e3-9a77-90f12063e97b","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the","page_number":92,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"222f2844-ef49-4ade-9481-3dc5b14b1728","block_type":"box","text":"lifetime of the security. In addition, certain ARMs provide for additional limitations on the maximum amount by which","page_number":92,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"506931fe-9b25-4306-881e-1411bcd42e29","block_type":"box","text":"the mortgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":92,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"59393b26-969c-40dd-b86b-c9467e3ac089","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":92,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"35de5de4-2622-457d-bafd-860dca3f3236","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":92,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"e643f98d-e997-4fbf-9d5b-c2e169089fd4","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":92,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"9a1d6925-eb1c-490d-8f84-4f65814e9e09","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":92,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"dcd3fb18-3945-4d39-bb91-c33df7878d19","block_type":"box","text":"balance of the mortgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":92,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"f52f11e2-7f2c-4fe8-a526-29a85c5ff2dc","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal","page_number":92,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"45680d45-58d9-4d2f-acb4-913d1f82b105","block_type":"box","text":"payment required at such point to amortize the outstanding principal balance over the remaining term of the loan, the","page_number":92,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"6d3c557a-9789-462f-87c1-45c6573b375e","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":92,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"abc3952e-f8ec-4fec-9b31-8ad5caf12880","block_type":"box","text":"CMO Residuals.","page_number":92,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"22c25500-c4f9-42cd-89f6-992bc959bd21","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or instrumentalities of the","page_number":92,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"7335cd75-6853-4372-b3e6-935c6b00891e","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan","page_number":92,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"4d9de1bd-a083-4d86-82d5-73aa1ee507dc","block_type":"box","text":"associations, homebuilders, mortgage banks, commercial banks, investment banks, and special purpose entities of","page_number":92,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"ed9d0113-0f1b-4c8b-8f80-79f718faf73e","block_type":"box","text":"the foregoing. The cash flow generated by the mortgage assets underlying a series of CMOs is applied first to make","page_number":92,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"3fdf6c59-20c0-4ca4-9701-fbb61b079a28","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":92,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"213d19ce-6198-4b0a-8d9c-22672744e3ee","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":92,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"28746db3-6c6e-408b-909e-d210ddf546ee","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":92,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"3b7690f7-c09a-42ab-a763-4a5f23705519","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":92,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"be14b4aa-c047-40b6-bcfd-02d5f8885982","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mortgage assets, the coupon rate of each class","page_number":92,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"880323e3-84e4-4190-b503-229457549d0b","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":92,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"b1e6840e-ac95-4ca5-8743-08d1a4cdcd7c","block_type":"box","text":"mortgage assets. In part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":92,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"082354f4-2192-46f8-ba37-9f2dd509f695","block_type":"box","text":"related underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":92,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"bb668806-1dd9-4429-848e-1a7cfadb7454","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":92,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"adaf01a9-ec9c-489b-b790-17881336303d","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":92,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"52280fed-cc35-4085-a6d1-ae2be01368d5","block_type":"box","text":"interest rate adjustments are based. In certain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":92,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"23be2dc3-8b28-437b-9950-dd198ff52a29","block_type":"box","text":"a CMO residual.","page_number":92,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"e537cfbe-9e0b-4440-a185-1c34b86f2544","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":92,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"583f51a6-b9cf-4a5a-af87-3d57ee635a0d","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":92,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"d943df37-8de7-47b1-931d-90d3fd72789d","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":92,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"f1d23390-5789-49c6-a386-6054d4a8032c","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":92,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"aade6e92-e6f1-41f7-8bdc-01cb9da06719","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":92,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"b766b3a0-fc8f-426b-91bd-aa744d7fa33e","block_type":"box","text":"registered under the Securities Act, may be subject to certain restrictions on transferability.","page_number":92,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"1ac9492b-5d81-4932-add8-874a167c8a6e","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":92,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"816e9dda-2025-47bc-95dd-2b397b6dd2cb","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities (“SMBSs”)","page_number":92,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"60e054b4-337c-427e-9434-e9a47477d80e","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mortgage-backed","page_number":92,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"17edf34b-4ee9-4ce1-abbb-f7acf7cea2be","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different proportions of the","page_number":92,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"8d16dfb6-a0e0-4f30-9a5c-b921b1b60fd1","block_type":"box","text":"interest and principal distributions on a pool of mortgage assets. A common variety of SMBS is where one class (the","page_number":92,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"1ccc930e-9f81-4872-935a-504017dc6e4f","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":92,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"fc54bc5c-619d-4a2c-900d-59a1c6b9a883","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":92,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"bb9f1ec9-0203-41a2-95f3-f023c539c37c","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":92,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"e448bfe2-6542-4ea7-8db6-1a4592497aeb","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":92,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"22e7a261-8514-4261-8527-53f7eb667201","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":92,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"b9c823b4-5b50-4c90-b4da-9423a0abb76c","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":92,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"bae56c95-8210-4152-8e36-df1e877a86c4","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mortgage assets","page_number":92,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"e64da227-ad76-401c-a131-fc3bc342a9a8","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":92,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"bae43d6c-cd82-4145-9ca5-04af3ff936bc","block_type":"box","text":"In addition, there are certain types of IOs that represent the interest portion of a particular class as opposed to the","page_number":92,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"04db55e9-53fb-4d47-a799-d5fd525384bf","block_type":"box","text":"interest portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":92,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"64a6ded7-4675-48e3-8881-5da95d272045","block_type":"box","text":"because of the characteristics of the principal portion to which they relate. As a result of the above factors, a Fund","page_number":92,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"69219e8b-d276-4dae-a40c-bc8788274910","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":92,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"d91cab4f-e598-439c-8b02-9f43073160b7","block_type":"box","text":"will be matched with certain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":92,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"5b9d208b-0510-43d3-b578-070ebb024e8c","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":92,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"a65d82ac-b32b-4b12-b7ae-49c2d5393d86","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":92,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"6cd6d08a-a1e9-4487-ac0f-0aba767a4ea7","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":92,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"43e1405b-f982-4813-84e7-7319af2ba084","block_type":"box","text":"Tiered Index Bonds.","page_number":92,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"d880fb72-b5b8-41da-b241-b427da2e2565","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a tiered","page_number":92,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"12fc17d4-b27d-4c46-835e-aa95d0773875","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":92,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"16ab0377-8169-49f7-a307-3f8346048e6c","block_type":"box","text":"II-54","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2c9b4af0-22e4-4cbc-8c37-f49e353423aa","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8cf73348-9ab7-42a0-9e7b-805eae1f0908","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":93,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"12d30835-7d93-401f-a279-4aae94e770df","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":93,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"3e32fa57-3e20-4af5-ba9b-d4725d886956","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":93,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"a95f533f-d15c-4359-b622-4e6593e9cd4b","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":93,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"58e7c256-53fc-4038-b443-34c011021f12","block_type":"box","text":"that of a fixed-rate bond.","page_number":93,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"26600c99-66de-4f12-a9e9-3bac2af40133","block_type":"box","text":"TBA Commitments.","page_number":93,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"464dabcb-c879-4736-af3f-6c16dfe86160","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":93,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"82888927-3d65-4eb2-8823-ca146d7b37f9","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price,","page_number":93,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"87fc76fb-1b2d-4b10-87a8-042e2ee6164e","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":93,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"82ed7ce6-e9c2-40c2-afd6-d0c80d7dcc37","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":93,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"d75bbefb-d870-4482-a96f-620926f3c7ad","block_type":"box","text":"mortgage terms. When the Fund enters into a TBA commitment for the sale of mortgage-backed securities for a fixed","page_number":93,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"79099faf-f7ad-4966-950c-51d1b5607ba9","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":93,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"a8cceaba-f94d-46d4-a19d-84be4ba70b14","block_type":"box","text":"short position in such TBA securities), the Fund may or may not hold the types of mortgage-backed securities","page_number":93,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"aaa70652-be59-40b8-9839-5eeaad0326f2","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":93,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"193640bb-11c0-4dc6-a6eb-79dc35862f85","block_type":"box","text":"below.","page_number":93,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"223bb69a-7cfe-4c8c-b305-ff64955a76fa","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":93,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"e794361d-9e41-4681-9e57-a670f12ee188","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll transaction, a","page_number":93,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"753830e3-897c-45e9-9113-243eef9ba78d","block_type":"box","text":"Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":93,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"edde6c56-d3f0-46c7-97b1-987615bf3721","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":93,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"aa857f36-a6b7-4451-8e41-cde32f87c17a","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mortgages collateralizing those securities may have","page_number":93,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"ead455e2-f627-4ba0-80b1-f9800c991a5f","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":93,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"a885039b-418f-4e79-83c3-20228c7ceb3e","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":93,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"79afeafd-8bb5-45ff-b0fd-1398d4c61188","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":93,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"64582bd2-34b9-41d7-86fb-8f25d03fea0a","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":93,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"a89bd741-8f61-422e-97a1-163ea3f66c0d","block_type":"box","text":"securities sold as part of the dollar roll, the use of this technique will diminish the investment performance of a Fund","page_number":93,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"4031a830-0172-48bd-b9ec-edb51c03f275","block_type":"box","text":"compared with what the performance would have been without the use of dollar rolls.","page_number":93,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"a596484d-bdd1-472f-862d-ca12cb6824d3","block_type":"box","text":"Each mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and a","page_number":93,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"bf9ecb8b-9383-4380-8331-cc6909bc332b","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mortgage","page_number":93,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"b86398d0-b7e8-4fe1-b3c2-f3adc4dd197b","block_type":"box","text":"dollar rolls may increase trading costs and portfolio turnover.","page_number":93,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"4ec06e42-1ba0-4c59-98f0-89f8dbc8be82","block_type":"box","text":"In the event the buyer of the securities under a mortgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":93,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"4f7b25a0-95e6-4b33-8070-8337d9b2f451","block_type":"box","text":"Fund’s use of the proceeds of the current sale portion of the transaction may be restricted pending a determination","page_number":93,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"78e5b950-667d-4e22-8622-163fee8bd1f6","block_type":"box","text":"by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":93,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"6d9a6516-d79c-4837-9098-5f6e8ab6172d","block_type":"box","text":"securities in the forward transaction.","page_number":93,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"bc928c4d-9085-4549-82d3-b8c6e21bc6ce","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar rolls may","page_number":93,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"8b0ef284-1ef9-4ab3-86b8-e20837838e28","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":93,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"0bcc7c50-6708-435a-9950-0655ecf8a283","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":93,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"f6e91bd9-c766-4b8f-bb81-45f408d1e548","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":93,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"11ebb811-4a5f-4480-8419-52a796f058e0","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":93,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"103630c2-427e-41b6-8386-ff16edbd1f12","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":93,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"caa28374-7d7a-44c7-91d8-e8e418772e41","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":93,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"fd3db058-645c-4868-b4eb-8a0cc1cdc273","block_type":"box","text":"securities (","page_number":93,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"e9cb8aa8-51fc-4cc9-b60f-37a84751075a","block_type":"box","text":"e.g.","page_number":93,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"6f7ffd36-9d1a-4382-9862-159ca81f4fb3","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":93,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"a7f2aae4-b81a-4c7a-9ba3-a27f84d301f4","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":93,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"b53993f8-25ec-4388-8531-319cefe09e70","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":93,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"945f8326-db18-4ea3-a046-a8840775fece","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":93,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"4f051bd4-6e91-4f02-b4f8-06339354a84d","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":93,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"4d075c6c-d124-4b11-afc3-5574bd161af3","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":93,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"5e0737f7-088b-4977-a36a-13947bc23f23","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":93,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"57e39bc0-3c91-4640-bbee-32df316cff58","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":93,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"6141d21f-5774-4ef1-b652-2a700536bbf3","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":93,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"1cdde563-c5f9-49f6-b78d-3dc9cd97147c","block_type":"box","text":"securities are derivative interest-only mortgage securities structured off home equity loan transactions. NIM","page_number":93,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"83af8362-097c-4487-897c-9e35134d8b55","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":93,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"8f49e5e3-8881-4b15-9d86-69aa47f44605","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mortgage-backed","page_number":93,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"85963f55-dc7c-4338-aa2a-298c2749a04c","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":93,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"ad1e0b4e-8561-44a0-a4af-3421ed4389a6","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":93,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"b45949dd-5d6c-4e73-a017-93eb7f605f6e","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":93,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"35df5081-6878-4c2b-999e-ed711bbc00ac","block_type":"box","text":"Municipal Investments.","page_number":93,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"4a10ea75-4a85-48d8-b9bf-433e2d6933f2","block_type":"box","text":"II-55","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"721201d7-6ce7-4bb2-b743-9138de6827ad","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"70f7c0a9-1b82-425e-ba61-057891f17efb","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":94,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"f7296438-2e1f-4251-aa7f-5a0f66070db4","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":94,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"45ba2607-814a-4f38-8869-8b1cd1a22545","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":94,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"63f2799e-c6da-40f9-b1f7-5e255bb85213","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that","page_number":94,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"cf538779-6a9b-412b-b7ec-b01316e7a0a8","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":94,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"10a00cb6-0d37-4e0c-a3d8-33b420e2a65c","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":94,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"202ce191-ad70-4800-ac50-f5da6970cf03","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":94,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"782e49bf-bdda-432c-b108-97833b04e6f1","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":94,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"6c698fca-6bf8-4a53-b222-e05bf1baf7d9","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":94,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"789ca059-369f-407c-a2c7-2ab41b5a5e02","block_type":"box","text":"or state and local personal property taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":94,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"0ad102ad-a9e5-456f-b75f-36b355542068","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interest in one or","page_number":94,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"2fcc6610-cbb6-4160-a229-69d163bde320","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":94,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"77afaa2a-b0f7-4061-9239-4373d847b59f","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":94,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"8413dc44-d254-44e6-9778-6b62d2c8be2c","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":94,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"69af9ad9-8253-451f-9f18-c7063fc8857c","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":94,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"620a51b3-1239-48a7-bd53-64867ffdb6c1","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":94,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"7990cc09-43ec-4bc2-948a-f7dc26dd4a32","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":94,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"2554bc47-2828-4cf0-8d30-649528c601c4","block_type":"box","text":"exempt from state and local personal property taxes of that state will be considered “State Municipal Bonds” for","page_number":94,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"aff0dbdc-b0b6-46e6-a5d1-5a1c495a6c10","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":94,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"2f4077cb-17f5-42ac-92c7-0ae17daba27a","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":94,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"a54369f9-fe9e-47b5-bfb5-4e70d5776a7b","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":94,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"c3087b4e-1df0-4670-8712-43545ebadb46","block_type":"box","text":"The risks and special considerations","page_number":94,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"0924dd3c-5257-4c54-a1cd-5d230ebca0e6","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":94,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"c9323ef7-f90a-4600-a619-12bdfa4c1e71","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the particular product. Certain municipal","page_number":94,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"6a3e48f9-3c83-4a71-ac49-ffce390fa6c4","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":94,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"91b912c4-c6a3-4bdf-b8d4-a83ed0d6e7a5","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncertainties in the municipal markets as a result of","page_number":94,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"807c8867-412c-4580-9418-9efdd9283c3b","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":94,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"e1d759cc-c761-4f32-abfe-f911e262d4ae","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and certain provisions of the","page_number":94,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"f229043f-14f0-4d04-8421-00696ae31725","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Further, the application of state law to Municipal","page_number":94,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"321dede7-e6ee-4c83-b214-4a3b3ef5731b","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":94,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"bac9e5f4-fdfd-40d0-8d50-dd916da1668d","block_type":"box","text":"uncertainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":94,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"0fd1903c-81ea-4415-9190-146cb2c74d0f","block_type":"box","text":"II-56","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a9ba73bd-0d34-4918-abc2-ce529020e641","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"23acf095-e44c-4838-8494-ba4dca4b0e01","block_type":"box","text":"Description of Municipal Bonds.","page_number":95,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"4da2577d-316b-4bdc-949d-87461551d435","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":95,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"b02eebbd-fa13-414b-bfca-13287035304c","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":95,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"57c08785-8dbd-44e8-aed8-f8cf85979478","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, certain types of bonds are issued","page_number":95,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"170e7afd-3713-4c7e-91c2-7dec85948006","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including certain","page_number":95,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"f595c454-74d8-45c5-9f68-23be096d5fb3","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":95,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"29a0dbb8-c049-4a94-80b1-9861b22dee9c","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":95,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"4aaaed19-b8a9-4bd3-9fec-a1d1b2a9915d","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":95,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"cd454b48-ddcb-4edb-adbc-bc458c5021b1","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":95,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"221f7f17-c86e-4f63-a2c8-190ab31d3cf3","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":95,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"bf4782e0-e457-4419-80ad-f700a7f6efc0","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":95,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"62d46fb4-7a02-4389-8391-789c2e833c4c","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":95,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"060ef4f3-5caa-49fc-a6e3-353897ab08cd","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":95,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"451f220c-862b-42e7-8f05-377abd8d436b","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":95,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"a3b551dc-9780-4703-a8c9-a7ef8537143d","block_type":"box","text":"General Obligation Bonds.","page_number":95,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"873ede2a-1474-4aa9-9a40-5fca0001e680","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":95,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"ae239d2a-12e9-4e26-bc3f-e75eb2157a12","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":95,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"38aeacdb-ef34-46f5-ae6d-c44f0159789f","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditworthiness will depend on many factors,","page_number":95,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"6111a24f-755b-41b0-9050-73744957f2b0","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":95,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"5494ddb0-99e8-4f0e-996f-5d43bc71d812","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":95,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"773ab24b-aa09-41a7-a02a-6f642fd98c5a","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real property taxes and the extent to which the entity","page_number":95,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"47345ddc-e68d-4a6f-b910-ed78af3f3d08","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":95,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"887efede-dd25-4595-b038-397de65d8964","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":95,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"10b1adc4-53f3-49e4-83b1-6f1016147cf6","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":95,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"58585196-eaa3-46b2-b179-4b2471e12ee5","block_type":"box","text":"Revenue Bonds.","page_number":95,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"ed9bf7b9-7e14-481c-8a3f-e0afcc5b31a5","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility or class of","page_number":95,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"70d0464a-f215-4ca7-8583-cb63596bf7bf","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":95,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"de079d03-9e15-4fe2-8771-1e50351424c5","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":95,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"6425c470-e012-4e6f-80b1-92b3f99d63e2","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":95,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"9b122682-bf8c-4da2-bab0-b3e873612199","block_type":"box","text":"viability of such facility or such revenue source.","page_number":95,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"9459333b-43a1-47bc-a798-b962dbfe8362","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":95,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"a7332659-4d43-4dfe-bc99-0f3c71764774","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":95,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"877491c8-db16-440e-a43f-38c975b86f20","block_type":"box","text":"properties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":95,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"11cb024c-3a49-428e-bed9-4b409bec8bc7","block_type":"box","text":"recourse against the property owner, may be junior to the rights of others with an interest in the properties, may pay","page_number":95,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"fee0caee-613c-4ee4-bce2-9f83c5e191b1","block_type":"box","text":"interest that changes based in part on the financial performance of the property, may be prepayable without penalty","page_number":95,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"a5c3e469-030b-4c1e-8338-b490b2e1a0b4","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":95,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"f0d61edb-6fb8-44ea-9d41-79999212d6cc","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":95,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"4a2e9259-8cdb-45d7-8b16-eb213dd265a4","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":95,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"57788fdc-2f7e-4d90-b436-f5e83087cd8b","block_type":"box","text":"PABs.","page_number":95,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"d240744b-479d-4ba6-8684-ee1a3b51b64d","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":95,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"1c9396dc-4e40-4192-b69b-77a152ddd756","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":95,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"860ed4f6-30ea-442c-af27-9dae9ba0d18a","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":95,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"19c2bf7a-da68-482e-a65d-b6e99c1d6493","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":95,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"80a0ad5b-4f7b-4e57-9f89-974d3f43c6e8","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":95,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"8e8cc768-1803-4a0e-bad7-ce3931dea6ed","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":95,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"af11e0b5-7077-4586-807c-879f75a92d7f","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":95,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"59702e12-65a2-4443-8821-24a402e50b8f","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":95,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"51b713e5-98aa-46dd-8b5d-18bb078ac9dc","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":95,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"01cb2e2c-1b02-41b8-9446-71a3cafd11b6","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":95,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"531fde06-3035-4981-a766-6a234d3e992e","block_type":"box","text":"the particular facility being financed.","page_number":95,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"f5b6cf74-6125-4998-8b44-466f7411cd4a","block_type":"box","text":"Moral Obligation Bonds.","page_number":95,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"721eede4-a655-463f-9a4d-6511673220ce","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":95,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"b6fffd82-95ac-4288-8309-853a7fd7b9ba","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":95,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"42d8275b-d713-478f-b508-10558d7b1d4a","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":95,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"fbfd924b-2183-4ae4-b022-8fd4aae4fb40","block_type":"box","text":"that issued the bonds.","page_number":95,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"47abc137-1679-4f35-acad-7bc83fd8b4ec","block_type":"box","text":"Municipal Notes.","page_number":95,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"c058dc5b-5e1a-4b48-bd7c-8a003328d0c3","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim financing","page_number":95,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"d3409aa4-7d36-4bd7-bc59-1f0963054492","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shortfall in the anticipated proceeds,","page_number":95,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"c444970f-512e-4b32-8456-71039d56e54d","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":95,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"98b41d4b-9b57-403a-8303-df8ba6a6f993","block_type":"box","text":"II-57","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"669901eb-be6c-4bf2-97ba-a0f7ca22f943","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5dc80e90-0c72-4682-aca5-914410d62a9b","block_type":"box","text":"Municipal Commercial Paper.","page_number":96,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"bba4d40d-6821-487d-ae23-72dc8cdaa02e","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet short-term","page_number":96,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"bbe40198-890c-4131-b993-0a6b8c7ae224","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":96,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"5dbb8d56-4f9e-42cd-aa8c-41cf3e2eae4f","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":96,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"9a7e35e1-0faa-4d29-b840-f970ed070017","block_type":"box","text":"Municipal Lease Obligations.","page_number":96,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"dea201fc-1956-4cd3-afde-582bca34f1d0","block_type":"box","text":"Also included within the general category of Municipal Bonds are certificates of","page_number":96,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"70fcd187-46f8-46e3-bb19-34e6281fa7a4","block_type":"box","text":"participation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":96,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"883f2acf-782c-4038-8e77-3321b43c25e6","block_type":"box","text":"equipment, land and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a","page_number":96,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"e77dabfe-a155-4821-afb9-063563247de9","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":96,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"53e4968c-16c6-4fcc-8592-83b3d8c72055","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":96,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"e3bc9745-91e6-481d-9f4f-d0ddb458a929","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":96,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"78872a81-3fd3-4ee8-bc91-f70fb657d897","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":96,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"b2670423-3429-49e6-b2ab-696be0f39bc5","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain “non-appropriation” clauses,","page_number":96,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"498f013b-436b-4de1-b18b-4e5d204982a0","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":96,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"45da7d84-b5a6-44c4-9663-83da106362b3","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":96,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"5096a174-2439-433f-8ac3-509143a6d542","block_type":"box","text":"secured by the leased property, disposition of the property in the event of foreclosure might prove difficult. These","page_number":96,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"13a7dfca-5859-4b3e-80ee-215aa7bd5fae","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":96,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"316f5e3c-3cbc-400a-b43d-04e870dcec64","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":96,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"f7db6d7f-021c-403a-9c88-a85cd78d85b5","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":96,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"28ad8fc5-f5d3-489b-9887-446138a23bcc","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":96,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"d0a1bd28-5f00-44e7-a1ad-71958ae6b859","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":96,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"92fa1e53-6d61-4681-b0ae-ca4660259c24","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":96,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"4120efb3-5b5f-41bf-905c-5e810859f100","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":96,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"353e7c52-ee96-492c-bf74-28bcac2ef92a","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":96,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"1cbd54e1-c296-43da-818b-5023cc50976f","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":96,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"f46075b9-11d5-4411-9719-83049fd97e0f","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":96,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"bad3f0ad-c883-4ba2-8829-5777d715f931","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":96,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"aafc7135-dbc1-4832-b176-80833169c9c6","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":96,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"b52563ff-7347-4371-bdab-fc32f3c690b1","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":96,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"544b0f09-2077-4782-81ef-6d4e16dc7b90","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":96,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"cb8404f9-9626-42fe-8b28-61d9d85f9455","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":96,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"0461f2e6-4a9d-4021-a2bf-48f32deceb41","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":96,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"03cebd59-7652-4d65-8e02-3829bfb10688","block_type":"box","text":"subject to certain limitations on its investments and on the nature of its income.","page_number":96,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"0fb35626-3467-480d-90a8-b4d0aaee104f","block_type":"box","text":"Tender Option Bonds.","page_number":96,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"792b2968-09f7-4fae-a94c-f0a053b9497e","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":96,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"ec9713e1-0680-463a-b97e-d456cc1f2860","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":96,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"731f4953-d1fe-4e44-9fbf-c605f13c5964","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":96,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"76282348-3a95-4e31-be3d-93969323c45d","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":96,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"62a541cb-4955-439a-b2b0-b8ee9872c422","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":96,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"13c85ee9-8dea-43fb-94a3-6f8706e45a00","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":96,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"bb892b1e-2a8a-4440-81fd-e90be578599e","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":96,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"21418072-8240-47e1-85cc-35054816e726","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":96,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"e1ccab51-c81a-4ad3-9db0-8f962da19c9f","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":96,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"bac21c04-5b63-49eb-9c78-397dc1531545","block_type":"box","text":"beneficial interests: short-term floating rate interests (“TOB Floaters”), which are sold to third-party investors, and","page_number":96,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"e934890c-d372-4c21-aeef-d41b58954df3","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":96,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"dd184079-a0eb-43e2-b9ba-9ff14da7da79","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":96,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"980423ef-dfd3-4605-b0bc-7288853d9a17","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity support arrangement from a third-party","page_number":96,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"0fa4d275-d838-4538-a7ff-1b46257d176e","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":96,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"6230db05-bdc8-4bc9-b6a2-78a4f401ff8a","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":96,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"8d1e8a51-9c4b-435b-8d12-71170d8d65f2","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":96,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"43b2508a-6638-406a-991e-b3494cf1c458","block_type":"box","text":"certain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":96,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"000bd6f2-133a-4071-8e4f-0c25ca38b439","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a portion of the TOB Floaters sold by","page_number":96,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"3fa5855f-660a-4bd8-bdd4-ffead83bc85b","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a proportionate amount of TOB Residuals to the","page_number":96,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"cc6a5819-8956-45de-a2aa-c27a46d4f06f","block_type":"box","text":"TOB Trust in exchange for a proportionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":96,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"b682ef18-e819-4ce8-b411-518f512fd2f1","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":96,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"3fdbe5c3-ed99-421a-b35e-25d65f9d58d0","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and","page_number":96,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"d44149a8-048a-42d3-a61d-077e99f75fe7","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in proportion to their","page_number":96,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"cca7083c-c245-43a6-ac35-07acdf2e4d35","block_type":"box","text":"participation in the TOB Trust.","page_number":96,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"c11824e5-0063-41d0-909d-ec214b2c5452","block_type":"box","text":"II-58","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1fc0ad7f-4a7e-4d87-b340-0f8cd6c4b04c","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"371f15c0-9e55-48ae-a74b-9fd932a2e879","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain cases, when","page_number":97,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"3a3a2c3c-14a8-4dda-a014-8caa5b971f40","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":97,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"36f81b60-da50-424a-bc1c-5da6bed43fda","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":97,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"580c20c0-3f9e-4de6-945e-5ef44dd1e849","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":97,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"2a4e80c8-b2a4-4f79-9663-a42d092920b3","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":97,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"8588bfb5-7131-4a37-bc15-fc5b37f3f9b8","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":97,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"5d848670-a6dc-4d9c-b06e-7a6097cf92b4","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a proportional","page_number":97,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"617b9387-123c-4d76-962a-3dbc6c25e4a6","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":97,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"e0118152-6485-4005-8b72-d6054608b567","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":97,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"0fdbe1a7-e8d3-4256-8139-82be83549cbf","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":97,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"ddc115fa-fdea-425c-ba6a-28eb034d1493","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":97,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"98071fe0-6f4a-45ef-8084-a321be268a01","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":97,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"2bff201b-7d27-4e33-8e99-3179fd640770","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":97,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"3d109047-9396-4a2c-a965-d42752c75520","block_type":"box","text":"issues.","page_number":97,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"bf5dc5c7-f816-4f35-a2b1-50ff27fe8d06","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":97,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"897999ca-4499-405b-b056-7b71e57aba5e","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":97,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"f0da4ac8-9200-418e-960d-7f9a243d1288","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":97,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"acc2afd8-5dd2-4860-b589-afbc8a5d84c7","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":97,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"e8ac95df-c5cd-4cfa-9226-9d24e7535438","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":97,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"34de4789-b134-4d99-b280-6586ebea2da3","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":97,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"a99a3122-632b-4877-90bc-63c0c7075988","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":97,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"1d9c8cac-dd30-4dd8-bde4-03c07b110e94","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":97,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"f98183ba-f5bd-4bc8-8a34-c77913b63d1d","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":97,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"cc0e695b-ea0d-4ca4-bd8f-2620ad2a8424","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity support agreement, and a substantial decline in the market","page_number":97,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"904da9c4-66d7-43dd-8c32-d5a29fdaf39b","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":97,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"4ff70248-8008-4e07-bc41-80538e51ee08","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":97,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"c1a40cd5-878f-4ac1-9d24-1f49aaee8282","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":97,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"88afa754-623e-4e27-b240-eb5e8395fe4e","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":97,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"43b4ea0f-3ac8-4c08-b825-267f3ec88cff","block_type":"box","text":"i.e.","page_number":97,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"f1da490d-cc83-47a7-b6aa-5f3b7c52f9c4","block_type":"box","text":", the Fund). In contrast, in the","page_number":97,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"e500db8f-d8bd-4b48-80b7-f1df39864b8e","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":97,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"ff6f1d01-700c-41b6-b8aa-26b3f703a387","block_type":"box","text":"rata in proportion to the respective face values of their certificates.","page_number":97,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"080f26a5-102f-4077-9bc8-024ee7f2840e","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically supported","page_number":97,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"948c2515-89cf-4f1d-ac79-f15dfde87787","block_type":"box","text":"by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity Provider”) that allows","page_number":97,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"88c5aeef-f680-4733-9d18-cab076722c29","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":97,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"4406e86e-289d-4ac7-9a69-fe9f3ffb0916","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":97,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"db385468-9a5a-44db-81db-17bc851ea026","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":97,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"ca7bf89c-b7d8-49fd-ba7c-da62fea25822","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":97,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"56e325ca-e406-4212-a9dc-df0abcd7325d","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":97,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"87897205-3a7b-4500-852c-6d68b94fae08","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion of the Municipal Bonds","page_number":97,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"9918ef3e-80ee-4a31-8799-1b2417e47795","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":97,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"3a097e85-c637-4c5b-9b96-cda3e72fd4bb","block_type":"box","text":"liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":97,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"cbbe563d-8373-465a-a74e-c4d34f312ff3","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":97,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"7f2f1343-6fea-48c3-9c82-1f51d84dc0f4","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shortfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":97,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"9af0e5a5-7268-4ff1-92bf-813443bfbf30","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised funds","page_number":97,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"8f9afc6c-d21b-4202-8eaf-29be61c47284","block_type":"box","text":"participate in any such TOB Trust, these losses will be shared ratably, in proportion to their participation in the TOB","page_number":97,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"cd21a972-e583-4d56-bc37-0c413c2777ed","block_type":"box","text":"Trust.","page_number":97,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"a7b435dd-0bd9-4a70-aebe-dae48f86ff2c","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":97,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"f33d8abd-f0e8-455e-8baf-cc6a29a71bdf","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":97,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"81c33be0-e7ca-475e-9fb8-b9e419ff6d6b","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":97,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"2dcefb45-cc1c-4275-939f-1dee56a6fe51","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":97,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"4f3c6a99-0374-4d02-9cc5-38a87f9ee12f","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are reported as expenses","page_number":97,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"deeaf4d6-771d-4f83-be3f-da24eadc1b97","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":97,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"dd2cd0ba-0854-45c6-9643-d7a6d1dd2bae","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":97,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"3a2dac47-7ce3-49c6-aac6-916a1b652dd9","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":97,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"4a92c3d0-5844-4dde-b988-d6dbee390060","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":97,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"5f8d755b-5d24-47e1-9e3b-d2082a186dec","block_type":"box","text":"II-59","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"991a28eb-4e5d-4511-80aa-06d768534997","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"653eeee1-59da-4ef0-a0c7-ae70ae9ba454","block_type":"box","text":"Since the tender option feature has a shorter term than the final maturity or first call date of the underlying Municipal","page_number":98,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"0769f368-d5be-4244-a3fb-171d933229a1","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":98,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"249cb5f5-73c5-43b1-a4ec-a6875f103d9b","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":98,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"01e75ae1-d08a-4e62-9174-2081f49c1a38","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":98,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"8d9abaca-ef99-42f1-b35d-471e7b5e1f23","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditworthiness, of many major financial institutions, some","page_number":98,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"1811453a-9562-4f66-bcec-fa4e0fa0b46b","block_type":"box","text":"of which sponsor and/or provide liquidity support to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":98,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"42b0c76b-f276-4aa9-99e7-24c907596286","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":98,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"76430dfc-b8a7-4894-b8e8-c4c4971fae5b","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":98,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"04dc89da-b4c3-43f9-9b80-a0f735dd8638","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":98,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"a2f4d5ef-363f-469d-87aa-619cdd5f4861","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":98,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"25ebce83-edab-42f6-a8b0-eea78f1075aa","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":98,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"773cb3c7-040a-40d2-9e97-4968c9aed32d","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":98,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"391cf16e-2ad5-4e48-a00e-9546e2e3849a","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":98,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"d7ac0c09-cc14-40ca-af40-6c97e68eb5c7","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":98,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"c2840137-e6fc-433e-aa48-cea19f958a2b","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":98,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"dc578779-f02c-4332-bfbf-0c9fa3e3df1f","block_type":"box","text":"Protection Act (the “Volcker Rule”), market participants have developed a structure for TOB Trusts designed to","page_number":98,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"9c43c66e-603d-4142-bd70-d1c562efc621","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":98,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"b8967315-aa9b-4bc2-b01e-2bf5d4596652","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain","page_number":98,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"22dcac00-f10a-4808-8cd7-790df7e34725","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be performed by, or on behalf of, a Fund. A Fund","page_number":98,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"0f4c2e86-b91c-48aa-a0e7-ddcc0373c43b","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":98,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"415bf203-763a-4539-af7c-d88df7345563","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":98,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"6bcf259e-49c2-4c44-ad5f-f353d5a0a550","block_type":"box","text":"this TOB Trust structure, a Fund has certain additional duties and responsibilities, which may give rise to certain","page_number":98,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"bfc332c5-bec2-4bd1-adaa-1ef442e23ca2","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":98,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"ffd4a441-3269-4533-8b58-a7655934a1d8","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":98,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"89d9a981-a255-4eaf-94ae-9ce9977fc3fe","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":98,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"4353e192-b947-4e16-a4fb-649b39e67b20","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":98,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"dc705073-9b58-4687-a9d9-a037e207d0f6","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-party investors, and the proceeds of the sale of","page_number":98,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"e1edcb87-80e7-4c49-a3d3-4870fc3fb20c","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":98,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"25f95878-bf28-4ef0-8555-1a8194d0b2e3","block_type":"box","text":"i.e.","page_number":98,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"71c38a93-6f44-4747-9b8c-2cae9f33fdff","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":98,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"dab4eae6-ad17-40f9-8a01-010ebf530e76","block_type":"box","text":"supported by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":98,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"c776fb2c-d850-45d1-a462-6a8c9e42d021","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":98,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"ea045321-ee38-48aa-b5eb-afa17d3f33da","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":98,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"16a7b2e2-72d6-4e83-9a02-6470a4ec6d81","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":98,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"1c4ce031-ee78-4249-b8e9-3a5cc4f71092","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":98,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"d8d456e1-2774-452c-b608-a77e8228a0e2","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":98,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"f6a84124-299e-4d32-8ed1-c25dcfc2a0c3","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":98,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"49dfcb14-6cf4-4eb7-8ea5-36904c894022","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":98,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"995d67c3-6d1f-4751-be73-18c605e51b2b","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would generally be no","page_number":98,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"8e7245f9-989b-4c8b-85e2-d8c8aa955da0","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":98,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"fd4e5921-70d5-41e8-af19-5a41152eff70","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shortfall if it holds a recourse TOB Residual.","page_number":98,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"81760dc5-ffcf-4f21-afb1-d9a752e8a079","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":98,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"69457a06-dc37-47af-84bd-ecaff7738d18","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":98,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"652d937b-06bc-4c6b-9edd-69614fd76039","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s Municipal","page_number":98,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"177d6858-a38f-48e8-b43e-ef0f75f2e1ca","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":98,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"deb0a8c7-b8a0-4bea-98f0-ea9ac952b852","block_type":"box","text":"increase the costs of such transactions in certain circumstances.","page_number":98,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"a85d2edd-77ee-4732-ad61-6458769b51dc","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":98,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"01a3a6e1-0a80-4387-8500-fa0c18da9d80","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":98,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"f789bc82-4701-4cb3-b4ff-27bc6f47056e","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":98,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"7b7efb2a-d502-4300-a84b-93f1bd6844f9","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":98,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"659918ed-85ea-488c-900c-583ddc755fb0","block_type":"box","text":"market is not yet certain.","page_number":98,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"87184500-5bcd-4a49-82d7-987838e6fb5a","block_type":"box","text":"Yields.","page_number":98,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"4be3500b-53be-4b5b-b757-a95da137281c","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":98,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"a159c854-43c6-4401-ba5a-487519faa540","block_type":"box","text":"money market and of the municipal bond market, the size of a particular offering, the financial condition of the","page_number":98,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"e4aee7af-205f-4c55-91eb-9275e612f01c","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":98,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"a65c209c-b26d-413a-866a-1516a0109eba","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":98,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"1e7021e5-83d6-460b-8d09-1540fd29a3e9","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":98,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"059ff902-ebc8-4ff1-9741-91af5bc54320","block_type":"box","text":"II-60","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6410d0bf-85f0-4f2f-8e9e-03b821993909","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0c4c737c-b65d-4c14-850a-4b040e52aae0","block_type":"box","text":"holding Municipal Bonds, both within a particular classification and between classifications, depending on numerous","page_number":99,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"6871f8ce-1984-44de-a254-540b8eaf1848","block_type":"box","text":"factors. Furthermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":99,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"2f4fe8e9-3a3c-4b67-b133-6348d1041718","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights","page_number":99,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"b2c88465-e4fc-43f7-8ad2-3e5a391fd74f","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of certain remedies.","page_number":99,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"8c9535d4-b991-48bb-a0c8-bc0d92c625ec","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":99,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"311aa77b-82f5-4335-bdf0-07cbf4401a9f","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":99,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"4b891ed6-c716-42aa-b4bb-82899fe7bebb","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the part of the holder thereof to receive payment","page_number":99,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"857328f6-5ec5-4938-b55a-ff2be8018d77","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a short notice period not to exceed seven days.","page_number":99,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"6c435b56-0b24-4a0f-b2f4-a0bc775b5acc","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":99,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"0b56bbba-b36b-484c-a3d1-4997f61a7fb9","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":99,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"9057239e-baef-4fd9-9224-cd75f173e841","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":99,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"c613a60d-53b2-470b-b129-6902d43e6567","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":99,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"3f0ffeea-eb1c-4704-861e-5e0abcefdeab","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":99,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"331946ed-5616-4eec-a1ab-71a3e784081a","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":99,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"563c5db2-69df-4ce0-ab4d-12b06887f0ac","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":99,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"2d94c544-111a-4910-a09a-8270cbd66eb7","block_type":"box","text":"opportunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":99,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"ead614b9-ad03-4323-aac4-3a9beb65375c","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":99,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"d27cb5f3-0e81-47ab-9473-cabcdadf8f93","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":99,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"228d1553-dd9a-48f4-a757-c61716b94e22","block_type":"box","text":"The Municipal Funds and certain other funds","page_number":99,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"fd5315c5-7865-4c5e-9803-da211e64e4ab","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":99,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"1fbbbffd-cfad-43d3-9eb8-c93aa7f66020","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":99,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"50e4db0b-4461-409c-8013-67333bbe8879","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":99,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"82b88b3f-5598-4eff-b3a2-efdb0047d776","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":99,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"8dc75e13-06a3-4331-bebc-492042f82abc","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":99,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"6e0c386c-9de9-4d7a-811f-a5c1b3181891","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":99,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"529e44dd-b6be-4e74-83de-e5082a0e522f","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":99,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"12c6d2e1-aacc-4e0f-850b-dbb7bee955f5","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":99,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"588c4fbe-f77b-441f-92c7-a680bdd72ad2","block_type":"box","text":"assures performance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":99,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"0bf0f3fa-3c4f-4733-ba6f-00d7ce2b9c24","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":99,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"a2421aef-5223-42f1-98a6-7027f9c3cf94","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":99,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"0f5f58d4-3eb9-4549-858a-a1ff7b670bf8","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":99,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"647f218c-1fa9-4bb4-80d8-8b872a380b01","block_type":"box","text":"effectively all or a portion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":99,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"319959ec-7e99-4dd0-855d-39bfc8cdc5e0","block_type":"box","text":"depend in part on the degree to which price movements in the index underlying the financial futures contract","page_number":99,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"51d184cf-53a0-4c72-83b7-baefa522bfb3","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":99,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"89159357-f3ea-43ef-98cc-ca2c8248343b","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":99,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"48bb4070-6e73-4384-b241-a1898d23d30c","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":99,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"cd864c30-4b35-408c-a394-8ed690cda6ef","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":99,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"e2611fd3-63bf-43bd-b290-a9c2b4bf6558","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":99,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"25848f84-d3b1-4c1b-95fe-84a9f47a7f66","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":99,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"dc07c4fc-2e44-42ec-99f6-10a954345416","block_type":"box","text":"affected by similar factors and the risk of imperfect correlation between movements in the prices of such futures","page_number":99,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"16beda6c-8f06-4a65-9711-1c3dff5f4308","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":99,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"ffa9911c-58ac-4c8d-be2c-1c63cf14c9bb","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":99,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"b7fdb7b2-7bb4-4f44-bbb4-4b525e746ec9","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to certain market risks, such as inadequate","page_number":99,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"9719a74e-ef96-427c-aa48-f53cc69cb0f0","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":99,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"daa7e0ea-41f3-4013-a680-1c18d17751f4","block_type":"box","text":"Call Rights.","page_number":99,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"4afcd54b-6928-4523-b93d-be16f7408200","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a portion of such Municipal Bond","page_number":99,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"2a623ddc-b7ad-47ae-a59d-b6f5bd93e2d1","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":99,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"6762d0eb-9876-4132-ab0f-8f7d3857e41b","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to certain conditions. A Call Right that is not","page_number":99,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"064de888-f0d9-4181-8c85-85571f8e9da2","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":99,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"00b17da0-8e31-42cf-82be-4b5e666c7678","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":99,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"691927f6-90de-4752-9500-acb9156b807b","block_type":"box","text":"Certain investments in such obligations may be illiquid.","page_number":99,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"650ddd10-c973-4068-9593-be19f599949c","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":99,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"fe3e72e1-93e5-4f76-8b69-2f371112e919","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":99,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"7cd5c675-36b6-4edd-896e-4aa68a3bbe83","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":99,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"4683e614-ff3c-457c-8534-79b43713c1f6","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":99,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"f57d7c14-f2e6-446d-bbd4-e3cd7ec5ce46","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":99,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"f7b07869-be0c-4717-ac4c-2310bbe5fe3c","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a particular investment or portion of its portfolio or to","page_number":99,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"de6c4ccf-66d5-4808-8b70-2bb4f5f2433c","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":99,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"3e7c940b-4b12-42fe-94cc-80d8c9b57291","block_type":"box","text":"II-61","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ecfb610c-0a89-4d6c-a738-0ffe150874fa","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a856b4bd-c34b-40ab-bd10-e18a4c823133","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":100,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"3344aafb-2c2e-4f2d-af0e-c07fe9d69491","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":100,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"1d2169f8-fd43-4f76-ace9-5ccc089fc7b3","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":100,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"3e844f06-13d9-4d92-b3cc-e92747c7a665","block_type":"box","text":"i.e.","page_number":100,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"68cf3d76-0d94-43c6-afc1-9ff364daaebf","block_type":"box","text":", wide differences between short-term and long-term interest","page_number":100,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"4d22adb6-3836-4803-bafe-8139015cb025","block_type":"box","text":"rates).","page_number":100,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"6f1746f1-03bb-457b-a503-b1732bee4190","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":100,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"0eea7193-bc36-4f2f-8de9-b529286f7e14","block_type":"box","text":"another party their respective commitments to pay or receive interest (","page_number":100,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"98c11301-a15f-4bb6-b7e0-c41ea0b92976","block_type":"box","text":"e.g.","page_number":100,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"d14f34ca-0dba-4534-8838-971fd4f3eda8","block_type":"box","text":", an exchange of fixed rate payments for","page_number":100,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"47e4837a-9959-4e07-8b9d-2558729cb685","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":100,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"a316515c-4642-42df-af05-36cf39faba2d","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":100,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"ddc97b20-df6a-4736-a9d8-291317aa8e2b","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":100,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"ea33ccd5-f359-4a86-b35b-0a79e8355f18","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":100,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"ba4f8d94-ee97-42ba-8367-64115adb587c","block_type":"box","text":"with the same attributes as the swap (","page_number":100,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"936ab0aa-4bea-4454-bc09-0eec22de575f","block_type":"box","text":"e.g.","page_number":100,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"3fa9b195-50cb-46f6-83bc-f8e344728655","block_type":"box","text":", coupon, maturity, call feature).","page_number":100,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"59e5a7dd-075f-4754-93db-309e1b15f93a","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":100,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"f027c417-1d4f-489c-a8f3-c47733784fbc","block_type":"box","text":"to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular","page_number":100,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"2ed9f1fb-a6ef-4298-afeb-5c763dfe9677","block_type":"box","text":"investment or a portion of its portfolio as a duration management technique or to protect against any increase in the","page_number":100,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"a9f9464b-7760-449f-acd3-9c60ae16ebae","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":100,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"f07c2bc9-c726-49a0-b9dc-8fe00b0c5402","block_type":"box","text":"short position, allowing the Fund to select the most attractive part of the yield curve. An MMD Swap is a contract","page_number":100,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"6b6a18d7-9a76-49de-9429-f53c43138b36","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the parties agree to make payments to each other on","page_number":100,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"f6cef591-1e19-43dd-a662-b1718891a1c8","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":100,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"ae5a87e2-83fd-4c50-8bbb-a43172ab4164","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":100,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"95842544-1eb5-4ec9-b134-ba9bd121b5d1","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":100,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"f35f012d-ee4f-4eab-8f9d-a8a317eb792d","block_type":"box","text":"counterparty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":100,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"fd1e999d-5af4-45b6-874a-848f4e1811d4","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":100,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"1121b6d1-08a2-4d2a-ac38-c85ffbea2aad","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterparty equal to the actual level","page_number":100,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"328438a1-1454-45ab-bdb1-318ea9faa316","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":100,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"dc224de5-f679-4dce-9e66-d665daf82c20","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":100,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"0213089f-1417-4f68-a1a9-ea07ab235451","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterparty in","page_number":100,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"89376f6d-570d-4076-920e-267229c01030","block_type":"box","text":"the transaction that could adversely affect the Fund’s performance.","page_number":100,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"d6f69698-df1b-492b-aa93-57f6b2f7c1e3","block_type":"box","text":"Insured Municipal Bonds.","page_number":100,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"bc639e08-3b77-4696-aec0-a16f3577b4ba","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":100,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"b32e4865-e2bf-4bca-977c-ac2104f40c9a","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":100,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"77ee6c61-db1d-4029-9231-193fb8c93d23","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":100,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"20395124-c3ac-4619-8a4d-651317af4ec1","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":100,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"a329ceb4-d061-47a2-89b2-297f93fab8b6","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be certain that any","page_number":100,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"aa58752b-e172-48f0-b3f4-8ba6b4a617b4","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":100,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"2ed9f91b-c33f-402a-8366-5a603f6b389a","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":100,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"7160bc4b-4ead-440a-8c11-d06b31fd16e8","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":100,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"a3de1502-c3eb-4f15-8ff5-4537d8f2f4df","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":100,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"f3a9b3a8-8854-4c65-b46d-7f4cae3b1221","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":100,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"c7e67712-6100-4dc5-ae7b-2c3dffe06611","block_type":"box","text":"bond could drop.","page_number":100,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"7c88a570-f089-4d98-ac05-5b8070b69ee3","block_type":"box","text":"Build America Bonds.","page_number":100,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"ec9cb415-b070-4b28-b75c-13d60ac92d8d","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":100,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"cb6d05d5-0786-497b-b282-d54d1650f939","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":100,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"9de17ad2-6fac-4655-bf25-be03393eb0d8","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":100,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"85caec3a-be22-440c-9caa-a64bc23149c1","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":100,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"c008e392-a4bb-4bc4-9181-67a3ae900460","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":100,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"0e12cb20-4ad3-48d5-b971-cc1827e530d8","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":100,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"62328c03-ced1-4bb4-83f3-755693a3b7d4","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":100,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"d8a95a3a-7261-40af-b2a3-1efb74debbc9","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":100,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"c604fb6a-b3d1-467a-b136-ecb3cf41005c","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":100,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"d31ae386-c07c-4080-92db-27a689634bfd","block_type":"box","text":"must meet certain requirements specified in the Code), a “Build America Bond” (which includes certain qualified","page_number":100,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"6b02f939-7474-4ba6-aa34-628bbff4da5f","block_type":"box","text":"bonds issued before January 1, 2011) or certain other specified bonds. If the Fund were to so elect, a shareholder","page_number":100,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"12336017-a5a1-46a6-ae1c-683905dbc4ad","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":100,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"175183aa-a43a-4852-abc2-5bf7bbf47074","block_type":"box","text":"proportionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":100,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"c4aaa2fd-331d-4ca2-9592-15cd8e33a30f","block_type":"box","text":"Certain limitations may apply on the extent to which the credit may be claimed.","page_number":100,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"ecb20824-c649-45d1-aab8-17b6013b3e66","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":100,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"d557641b-cbfc-46ed-9cd2-6e3070ea78e8","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which may be in","page_number":100,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"624c9056-f63b-4925-8229-13afb5162d3f","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, participations, beneficial interests in a trust,","page_number":100,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"2c7b861d-2bb4-4ad6-8dc2-2beedb476d0c","block_type":"box","text":"partnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":100,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"f13dd5c1-6077-4113-baf9-aa890cbb964e","block_type":"box","text":"II-62","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b9629c5b-87da-4f0e-9122-326db63ee436","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a54e6725-2cfc-4d0c-95c6-83c4f7b371b6","block_type":"box","text":"of the structures used by certain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":101,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"55e13e79-0f30-4566-83f1-bf994bbbec57","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":101,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"bdd3c645-50d0-4ec9-8c51-7c7931ea40d4","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":101,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"b0aef0fb-1084-4ea7-811b-94b329d1e8da","block_type":"box","text":"municipal debt obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":101,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"603c40b8-c745-4228-af97-8db989737f62","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":101,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"267afc98-3626-4809-a4ef-7a1ebeb71017","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":101,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"75af51b2-8a48-47f7-a0a7-51e4c2190d4c","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":101,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"f5ebcb46-45c2-499c-93ab-3e0cd6e0d9bb","block_type":"box","text":"their face value to the sponsor (","page_number":101,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"30a262e4-e372-41de-a225-a7ac33d5d5a6","block_type":"box","text":"e.g.","page_number":101,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"b546154c-8568-44ba-9191-6b660930ca41","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":101,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"0297da62-1077-4eca-a5ec-aaae9abcf4dd","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":101,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"ee7c4fdc-7cd6-4534-b1f4-e1f686d8a9c6","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":101,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"bffd9ff3-5ac0-42dc-94f8-3cc01d2a2a51","block_type":"box","text":"A participation interest gives the Fund an undivided interest in a Municipal Bond in the proportion the Fund’s","page_number":101,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"23a3dd02-26cc-42a2-bf33-743e86151a06","block_type":"box","text":"participation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":101,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"1976a38c-0f45-4dd6-97da-700808976faa","block_type":"box","text":"feature for all or any part of the full principal amount of the participation interest, plus accrued interest. Trusts and","page_number":101,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"fa81b9c4-0fe3-424a-b260-0801e9bd7e92","block_type":"box","text":"partnerships are typically used to convert long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":101,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"55364e11-ffdc-409b-9c0a-1846e5893f58","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":101,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"13f42f6f-a5d2-4f43-88ae-7ec7d31994a3","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt obligations","page_number":101,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"c31b1324-956f-4ebf-8835-46ddf3f21af7","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":101,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"90b355e5-744e-473e-8e7e-56497c5f3a8e","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of participation interests","page_number":101,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"d087f2d2-248e-4e42-9e2c-e3000432fef4","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":101,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"0cbfffdf-03be-4b4c-b752-9b7d8f57f0c5","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":101,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"d22c5402-eed2-4d2c-b117-ef604df09c7e","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":101,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"27f80dc7-c08b-475d-bc6d-d985ca5c3918","block_type":"box","text":"such opinions.","page_number":101,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"25ade088-d0fe-4fa3-aa81-1b53ef0a5d6d","block_type":"box","text":"Operational and Technology Risks.","page_number":101,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"10f7207d-f642-4118-8ab9-ca81fca1877d","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":101,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"5e49ee96-3bd9-4bb3-a3a2-cdadfbfb1082","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":101,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"0dc700cc-0391-49d9-b492-deeae88af81a","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of artificial intelligence and machine","page_number":101,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"7e98ded9-1e84-4290-81c8-d45aee086ce8","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":101,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"263e4522-10e4-4bd0-8a2b-1782c3b72a6f","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":101,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"44265ac8-cdac-4dc8-823f-03ca0cb4d7ed","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":101,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"86011fa8-9a0f-46e3-a76a-d0ce21cf6426","block_type":"box","text":"counterparties, market makers, Authorized Participants, listing exchanges, other financial market operators, and","page_number":101,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"2c2b3594-3f2c-486e-b2bf-f7db938b24e2","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":101,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"69182683-0028-4dfb-a6ff-638e7c336739","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":101,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"b083392a-b117-421f-9079-1af4bb9626ca","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":101,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"de4cb9a3-72db-4aab-b7c4-0a876c8a86a4","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":101,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"c97acb8e-b0d5-4b95-be0d-b742fbe20e06","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":101,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"bc1796d1-eff6-4034-9f09-381257d62166","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":101,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"eaf3c23f-5c6c-4e42-ae52-ca464a11d327","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":101,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"b10f714b-e2ac-4fb8-92d0-d7e7152f8ae0","block_type":"box","text":"particularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":101,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"f5e7c754-5174-4252-baf3-4157299b070d","block_type":"box","text":"any of the following: financial losses; interference with the Fund’s ability to calculate its NAV; disclosure of","page_number":101,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"7d910636-6e6b-4a26-a962-fd99fce9d694","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":101,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"4d2055bc-08b6-46b8-93f3-eaf39c3c688e","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":101,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"440db619-38a6-41f7-b0e8-b43759a71acc","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":101,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"c4fcbde1-d0f2-47a7-ad98-9e8fcea91a4d","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":101,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"39c35351-fd12-41e5-aa2e-30b051221295","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":101,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"a77a58d3-29d3-40d0-ad57-ef34efedaf1b","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":101,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"67d5437f-77e8-4c4c-bea3-3b3a388fbac8","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":101,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"dea5af80-c45d-4b01-b676-b75a61c833d1","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":101,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"b0ad0b6e-6fd5-41c1-99db-45b2ffa0fee2","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":101,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"092b7015-4f97-4d98-a3ca-a04a1c074bc6","block_type":"box","text":"to the Fund and its portfolio investments. These advancements could harm the Fund and its portfolio investments by","page_number":101,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"a534a76a-43ee-4f41-80b8-88b9b705ebd1","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s portfolio investments. Additionally,","page_number":101,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"df82049b-8210-4094-a1a9-3c52d0ff3612","block_type":"box","text":"these advancements could significantly disrupt the Fund’s portfolio investments and subject them to increased","page_number":101,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"29e81256-b0a1-417d-a1ca-8e7cae191ec5","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":101,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"381c66f5-b2fa-404e-b76f-5a181580f5f8","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":101,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"d72d68b1-68c3-4037-8dea-9c2b32563595","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":101,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"20f9bd16-d8ca-4dae-ad8f-6b6a16d6c6ec","block_type":"box","text":"infrastructure assets.","page_number":101,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"51a09df4-e98a-4780-a872-b739d1271056","block_type":"box","text":"II-63","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cbf4511c-98e4-4998-acac-f56048088e83","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"49f03351-64ab-483e-afde-d9db071be156","block_type":"box","text":"The Fund and its portfolio investments could be exposed to the risks of AI technology if third-party service","page_number":102,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"7b82bf11-5be1-40ee-9b23-0e69dd13cd75","block_type":"box","text":"providers or any counterparties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":102,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"34ff3e15-c8db-47db-9765-c3442ca3bfbe","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-party products","page_number":102,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"64b3241d-1f1b-4788-af9c-9054d575489f","block_type":"box","text":"or services.","page_number":102,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"34d4e8f4-d1ad-41bd-a14b-a43afef87284","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":102,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"7cc3e7fe-4559-486a-838e-8d42c42920fa","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":102,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"e26978cb-d18e-4a95-9ed3-61d57f11501b","block_type":"box","text":"other third-party AI technology applications and users.","page_number":102,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"cbd16c67-a684-47f5-bdac-8a2fe3fefdae","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":102,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"70599b1d-5521-4935-94ce-06c053d567b8","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":102,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"64f03ab1-ea8e-4c12-bb82-17b3c2f7cbaa","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Certain data in such models will inevitably","page_number":102,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"14aece35-1aec-44d7-8523-87f3f9c21979","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":102,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"1629be8a-2d64-445a-8795-197e257e547b","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":102,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"1b16e0f1-ef77-4b3b-ae28-d5e7779a3b3e","block_type":"box","text":"incomplete, erroneous, distorted, or misleading. Further, AI tools may lack transparency as to how data is utilized","page_number":102,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"64e3110a-20bf-4097-8624-0be966e773ac","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":102,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"1663cbf7-24e0-4344-ae58-3b9356d3df7f","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its portfolio investments are exposed to the risks of","page_number":102,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"aae174d3-56a6-480a-a680-d71a04163952","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":102,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"cd87b9ba-d455-41e7-9752-29277e9a0f13","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to monitoring and","page_number":102,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"3593d2b2-6593-4fc8-b37f-346b4e7d86dd","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Department of Justice, Consumer","page_number":102,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"61ce387b-1b04-4052-87dd-33ac6ba6e48a","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission released a joint statement on","page_number":102,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"2df7aabd-d318-47ff-8287-51a2c5ba028c","block_type":"box","text":"artificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":102,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"4af59db3-f03e-4175-a57f-75d1aeab269d","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":102,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"dce363d5-1f6a-41bd-8ad2-a02807bc74a2","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Artificial","page_number":102,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"e6a50745-a65d-45f4-b8c1-dfb4130e093d","block_type":"box","text":"Intelligence Act, which applies to certain AI technology and the data used to train, test, and deploy them, which may","page_number":102,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"41f216a0-c878-4a5f-8398-5cce6ea0b1dd","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":102,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"c668c271-4c06-47b7-9408-9b65f0d75fa8","block_type":"box","text":"adviser, or the Fund’s portfolio investments fail to comply.","page_number":102,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"ad171cd4-a77e-4ff4-9779-d969f2e69d20","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":102,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"53dd0968-2513-46ee-bf12-2ddeefb02e7e","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":102,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"39610f47-a159-45b5-b275-22e39f282dd6","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":102,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"2139cee2-ebee-4c6f-8907-c00cfe17b40b","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":102,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"43583d21-c341-40b8-97ef-b6b489de9bc9","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":102,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"f512acae-e7e9-470d-b0b6-6c1753f5a4be","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":102,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"9c9e4995-4338-46ca-8246-8c93cc7fafc5","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":102,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"127e8292-01be-4e9b-b66f-271a5b81464b","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":102,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"df592f3a-5aa7-496a-bc40-9f8b6212b608","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":102,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"b052d1f4-8db9-427c-8f8d-ff69d65c4cb2","block_type":"box","text":"plans and systems, including the possibility that certain risks that may affect the Fund have not been identified or","page_number":102,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"32e6e8b4-78c5-4578-bcb4-f583bb80d933","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":102,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"4d198a54-178a-4ef2-828f-4b09d02f2171","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":102,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"a6315d4e-62a5-4287-ba67-13a97753668a","block_type":"box","text":"and remediation efforts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":102,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"07d8995c-1d2b-438b-b5f3-baf8b2984762","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":102,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"7e955f79-5bf2-4d97-9985-9e71c4ddc5ba","block_type":"box","text":"counterparties, and other third parties whose activities affect the Fund.","page_number":102,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"eb897589-b254-472c-86b9-f57370a20357","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":102,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"9eaf1876-3c7d-41e2-9f91-24d0fa2bf488","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":102,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"d879924e-fbfe-4e0e-8964-f9a3319324fa","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":102,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"a45b0cd1-7e09-4b58-9bd7-e04067aab6e1","block_type":"box","text":"resources to monitor and implement required changes.","page_number":102,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"720aaaf1-d41a-447a-b625-11d8b09033ad","block_type":"box","text":"Participation Notes.","page_number":102,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"067209ee-11ba-43ec-a508-6c5e4258e496","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":102,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"43e75a7e-0401-4bdb-ac51-36200f46d2d2","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":102,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"5938f884-b108-47f9-8e6c-0e3454e91a71","block_type":"box","text":"(collectively, the “underlying security”). Participation notes are typically used when a direct investment in the","page_number":102,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"39575154-8df1-4c12-b4a6-2d0d067cefc0","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":102,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"eb3c420d-17da-4c3d-937d-45f5df8cac89","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note is not","page_number":102,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"122dd371-c126-491a-a211-c40d20483679","block_type":"box","text":"the same as investment in the constituent shares of the company. A participation note represents only an obligation","page_number":102,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"9b271d61-9193-4a00-aea9-74f7d2919987","block_type":"box","text":"of the issuer to provide the Fund the economic performance equivalent to holding shares of an underlying security. A","page_number":102,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"1b6d6def-40c9-4f09-8b77-dd1ab0f4a62c","block_type":"box","text":"participation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":102,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"83880efd-5d51-4843-ac38-d6c2a6bef550","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":102,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"aa207ca5-d2f4-4ec6-b653-39dcaaf9c05d","block_type":"box","text":"participation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":102,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"0e731f24-48a3-4c86-945c-b2a1aa665f43","block_type":"box","text":"II-64","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"26059dfe-1543-4a15-b52d-b9046d9dae57","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2b131d5c-2104-4b93-b097-efa61edfa624","block_type":"box","text":"a participation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":103,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"827ff414-a095-4299-976c-063a98819838","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the participation note if the issuer fails to perform its","page_number":103,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"6a1b1fc5-9d7c-4c56-8959-a7397073e0be","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditworthy.","page_number":103,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"251427d8-afec-4d16-aa6e-8895baa43185","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":103,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"7b5a78e0-bc8f-4d19-899d-3a961a803c41","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":103,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"6a48f2da-e22d-43e3-bff9-aab7fdf05376","block_type":"box","text":"participation note expires or a Fund exercises the participation note and closes its position, the Fund receives a","page_number":103,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"a9e04940-bb4e-4966-b3fe-fd152dbc4b46","block_type":"box","text":"payment that is based upon the then-current value of the underlying security converted into U.S. dollars (less","page_number":103,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"da7b2572-ebd6-4fd3-a17f-2e66e07846f2","block_type":"box","text":"transaction costs). The price, performance and liquidity of a participation note are all linked directly to the underlying","page_number":103,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"29623279-ab49-47ac-bd47-80e3253691aa","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a participation note generally is dependent on the liquidity in the local","page_number":103,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"8b440716-d96d-410b-9cd7-2108f529561f","block_type":"box","text":"trading market for the security underlying the participation note.","page_number":103,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"5ac395c5-8de0-4007-a813-0f4a910d36bb","block_type":"box","text":"Portfolio Turnover Rates.","page_number":103,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"ca5a8bd9-635f-4a24-9dbb-d16eab9d5a6a","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":103,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"e445f19d-0622-4f9c-b18f-d3b2e0d58640","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although certain","page_number":103,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"a30ad2bb-471d-49e2-904b-e98abbec3b96","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":103,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"3b3fa9c1-e14e-4182-8094-81395f9f3c30","block_type":"box","text":"substantial number of portfolio transactions. With respect to these Funds, the rate of portfolio turnover will be a","page_number":103,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"01775cda-cb89-4dba-b0f7-2dc70551f421","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":103,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"78c811a8-06b1-45d0-9a75-7bccbafc37db","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Portfolio turnover may vary","page_number":103,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"2a60e86f-c798-483e-ae51-883f1e386955","block_type":"box","text":"greatly from year to year as well as within a particular year. High portfolio turnover (","page_number":103,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"8d519759-4a0c-4cc1-a92d-7beb40cd5657","block_type":"box","text":"i.e.","page_number":103,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"1d19821c-6446-48ec-b5f3-0f82c26921e0","block_type":"box","text":", 100% or more) may result in","page_number":103,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"af0904b7-7b50-4ecb-9673-714279032ac4","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":103,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"0b5b9d20-611a-412f-85e6-be9c3cab0a60","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":103,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"875f6394-7fee-4a14-9a16-c54a551aaff9","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be short-term capital","page_number":103,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"97a6b916-0a14-4a30-addb-6d1c2d56a8c4","block_type":"box","text":"gain or loss. These effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":103,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"a59c64b5-e7a9-4b1d-b2bd-ba9a6780f35f","block_type":"box","text":"Preferred Stock.","page_number":103,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"2b20dd76-51ea-462e-9168-5d854bea09ee","block_type":"box","text":"Certain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":103,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"dc9e3a4e-336a-4ed2-8fb6-928a9d9da552","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":103,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"dda822be-3054-4ede-9d64-615f3284cda4","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":103,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"7ada49ac-26a4-429f-856b-34450452f5c8","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock","page_number":103,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"21276879-6474-46aa-9e54-624ce46e7e43","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":103,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"5517d976-adf5-43cd-b7aa-d179c33768ea","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":103,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"a87d10e0-e16d-4204-8b34-86d47ff48c50","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":103,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"74256d1a-b443-421f-9bb9-ff4ae94f3fcc","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":103,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"dfd996a1-d067-4142-a983-1074bcd49013","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":103,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"bbd763cd-568e-4ffb-a853-2551a0cf6254","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":103,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"8f9305d3-2fd4-499e-90a1-b674c65bad63","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment funds that pay","page_number":103,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"1bbfd6e2-377a-4a58-ba68-93c74537e5ff","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":103,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"de725a96-941d-4b46-bf8f-9c80727bdfaf","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":103,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"d5f61ce3-225e-4aff-8213-1d44baf37b53","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":103,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"b29d82a7-5b6e-4c26-ada7-7870dbf44f60","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":103,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"cda0c7c8-5e61-40c2-8d8d-bec715d2e1e7","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":103,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"9bf348f8-eb11-492c-a201-1b94e7b14636","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":103,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"4595dd05-aad4-450f-9061-58b2a5f51d98","block_type":"box","text":"and concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat investments","page_number":103,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"0ce767cf-bf10-4bc1-8734-7511575851b2","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":103,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"b84ba096-1233-441c-902a-8c1e1ee27677","block_type":"box","text":"Trust Preferred Securities.","page_number":103,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"f3b21cb6-96e4-4181-805a-f84118a206ef","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":103,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"33ec9dec-aee1-4754-88f5-1b00facb521c","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":103,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"4a1b96f4-6cb5-487f-8155-c97c401834a9","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":103,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"3108890d-b7b5-4fd7-8f54-dba71da1a050","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":103,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"9e9024b6-89bc-4d42-b795-25fc6c2543a7","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":103,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"032b3458-b876-4d21-80cc-0486309053f9","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":103,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"80455bfc-3695-4841-ae17-d743b174d654","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":103,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"b7fa7e63-ed1c-4cd6-8e5f-8247ae107ea2","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":103,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"911b813d-aeae-40fc-89fe-398d291d7263","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":103,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"5666a189-0c0c-4ada-af0e-9b23b0787feb","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and certain other features (such as","page_number":103,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"e8fe4901-ebc5-45df-b4af-fa7614a066d8","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":103,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"977081ef-132d-469f-8b18-3c67431c02d1","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":103,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"6264901e-b3b8-4277-9293-675b8706ab75","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":103,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"cfb6ecc2-bd66-4f64-8488-d1f790368f44","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":103,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"938ded7f-e4f2-4cd8-8ed1-3758f0459bb6","block_type":"box","text":"®","page_number":103,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"3f928303-b6b0-4f45-8abf-149029a81149","block_type":"box","text":"”); monthly","page_number":103,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"74072281-d568-4c2d-9290-770cf80d93e2","block_type":"box","text":"income preferred securities (“MIPS","page_number":103,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"b0cfb95a-c6b1-427b-9494-9eba28d9730f","block_type":"box","text":"®","page_number":103,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"e314f2ec-e92c-4985-90f2-59785a436850","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":103,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"7e10eb13-9887-48c8-a095-7256cdcd829e","block_type":"box","text":"®","page_number":103,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"73a7a9d1-8ef5-4308-bb23-4e3254519a6a","block_type":"box","text":"” ); quarterly income debt securities","page_number":103,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"ee1120f4-e845-426e-ae2b-32f19b9d47e6","block_type":"box","text":"II-65","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d38b911e-2b92-48f3-8c7f-c5ae5a6db42b","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e2ecbe0a-0051-4b6d-b60d-a18a82f05d42","block_type":"box","text":"(“QUIDS","page_number":104,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"18e0ee07-47e7-46db-995b-166b45b0c551","block_type":"box","text":"®","page_number":104,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"38e41cae-06b5-4790-ab2b-81a987b95d1b","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":104,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"561925b2-c075-4dcc-8194-15127091e61a","block_type":"box","text":"SM","page_number":104,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"557e5552-f9b4-4ae8-9b7c-1b68e364b5b0","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":104,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"50889fc8-4b6e-41c8-9e18-7fd086b09567","block_type":"box","text":"®","page_number":104,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"5aed5b31-cb6e-4d73-b759-20b3634ef14a","block_type":"box","text":"”); public income","page_number":104,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"22eac820-5437-43d7-8390-1d5c17a33e21","block_type":"box","text":"notes (“PINES","page_number":104,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"9ca6b9c6-a507-440a-acf3-49a2a8866b80","block_type":"box","text":"®","page_number":104,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"c7641e5b-ba85-42ba-8f9f-3a2f9508ecaa","block_type":"box","text":"”); and other trust preferred securities.","page_number":104,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"8cd879fa-4e97-4d5a-a52d-fa99f82ff97b","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":104,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"36e47ff2-36b1-4614-97de-6c6394489b15","block_type":"box","text":"In certain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":104,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"d0547060-ee85-4a3f-bd7c-2afd7e0a75f9","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":104,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"1ec5ca93-3367-427c-9a76-a4cbba25f8e8","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":104,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"d248b986-4631-4502-bcfb-f209b5c81564","block_type":"box","text":"regard to whether all payments have been paid.","page_number":104,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"496fb66d-19e2-47e6-a127-6ace14cf8faa","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":104,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"838a69af-30b3-46ec-a6dc-6d15cb99b6f0","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":104,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"137bfde0-6255-4995-850e-873bfd530c03","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":104,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"9e745197-918d-4644-8a79-20fe490b70d4","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":104,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"d40883e8-6f4f-48ca-9175-8c603e3f34ce","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":104,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"bdd7d1f8-5932-4d33-908d-44d4f0293aa2","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":104,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"eef4ffed-c5db-4848-9538-5b909095085b","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":104,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"265f7f96-c727-4c51-b213-42368097780f","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":104,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"f51eee40-b198-46e5-9147-1c2d4482c0bc","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":104,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"d183e1a1-6332-417b-8a5f-8a67db7de931","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":104,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"b3f40f0c-77fd-47fa-93c6-543955646780","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":104,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"44fc01f1-b63a-4a0d-a367-947b1d14507d","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":104,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"31434cc8-6164-4d53-938b-2e433f00fde1","block_type":"box","text":"debt securities.","page_number":104,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"2cc85c94-e5c4-4711-80b6-534b40de04c8","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":104,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"bfd0a989-f62a-47b8-9447-e7b3309fd8cc","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":104,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"33beb43e-57da-4000-8797-58c6c96af4a9","block_type":"box","text":"REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":104,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"6b17bd99-b1d6-4f68-9225-b614a38d9d5d","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":104,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"71146635-dac8-4463-bbe6-c1f637047bed","block_type":"box","text":"geographic areas or in specific property types,","page_number":104,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"01ae2fc1-285d-491e-a163-aa7edb74f06d","block_type":"box","text":"i.e.","page_number":104,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"9b4157c4-c7cb-4afc-abfd-f86875ff5055","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":104,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"058ea484-1095-4635-a078-cf1f0eab1e21","block_type":"box","text":"buildings.","page_number":104,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"96b70977-17de-409e-b946-1a5c0f5e07af","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":104,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"614423d4-7b09-4ffe-b879-5c4751e83df2","block_type":"box","text":"proportionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":104,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"70794f17-c416-43e1-9d44-6b1d2d887bef","block_type":"box","text":"Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":104,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"ddfc3b7b-9a1a-4dfd-973a-65a9e9ecbdaf","block_type":"box","text":"property, which derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate,","page_number":104,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"26db9172-fdc5-4666-9a68-108c594d310b","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mortgage","page_number":104,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"ac3e26f3-f301-4a22-a46f-ed7c2cae2bdb","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":104,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"41d3c5cf-e2df-40af-9d58-f1e5b3bc19fb","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real","page_number":104,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"5d82395e-460d-4b8d-a342-7229e1b97815","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":104,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"7cd8b215-9aba-4e80-8ff7-b01e93212e2a","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":104,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"fe6bad4a-9925-4d2a-851e-a70836d5911a","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":104,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"cb080246-5f1d-4e09-8d7e-43a09b19b51a","block_type":"box","text":"safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management,","page_number":104,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"c62b69ab-6f12-4e43-91ce-b98f6ed84c17","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":104,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"06897aa9-309c-46f6-af02-dd4e19965d29","block_type":"box","text":"from new properties, the impact of present or future environmental legislation and compliance with environmental","page_number":104,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"3bc5688f-9a91-426a-84c9-035dd41b8250","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":104,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"93df1df2-df5f-43fb-9aab-85eb8f23e52b","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":104,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"01c143ca-6564-4e2d-895d-d950bd221c1e","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":104,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"d64c17e4-b332-4a29-8e6d-b8b476b31758","block_type":"box","text":"REIT are concentrated geographically, by property type, or in certain other respects, these risks may be heightened.","page_number":104,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"c9769e63-b2ad-48ad-a292-5d70765e54f0","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":104,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"eae8eba1-3cfc-4f2e-9985-062387d4383c","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":104,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"6d93a073-b76d-402e-8735-23024a94453c","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":104,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"ae2e3da6-0142-4830-a6e0-5304d75aee52","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s portfolio which is","page_number":104,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"bf524bb4-8b1f-4ac5-828f-c368215e1d39","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":104,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"99389c76-e373-471a-9b0e-dbef5faf62aa","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":104,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"17208c97-462e-4cab-8655-200913f73e0c","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":104,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"17621435-060c-4d1b-896d-bd8440c98a7f","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may report dividends as eligible for this deduction to","page_number":104,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"5e42e4e0-bc50-4ca4-84fa-de00b38aa7fb","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":104,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"cf4a941e-fda3-43c0-b1d7-3e71ca1540a1","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":104,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"333d14f2-5eed-4ca9-b3a9-2f9bb9c2226e","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":104,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"9ff60eef-00e1-4260-9598-38d26fc4ce8f","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":104,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"72d0f01c-bd82-49b0-a489-2974d2940cd4","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":104,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"a3e37954-f852-46c1-8667-0eb3dc1c45e6","block_type":"box","text":"II-66","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"15997b16-c519-4fa4-bbeb-2ec90b5452e2","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"14ecb15d-c978-49da-b153-1e56d6a9e48b","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":105,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"dba1530f-a75e-47c9-8d6b-83e08b76f442","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mortgages","page_number":105,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"ef8de6b5-ae7c-4b7b-8ef1-42d9fb140ada","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mortgage REITs. In addition, since REITs","page_number":105,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"e0613428-fbc4-4f7e-bd26-e935c29c9ea1","block_type":"box","text":"depend on payment under their mortgage loans and leases to generate cash to make distributions to their","page_number":105,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"a8ed6bd1-005f-4004-8ccf-7a2c734b2337","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":105,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"620dd1a1-5640-4001-8971-c67caa749f34","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":105,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"4e710571-58fb-40c0-ab54-4fd2eb534432","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":105,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"ca7f6a3f-28b2-4afb-b9e1-8f408a2db0a1","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":105,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"d54d77ee-751d-4aba-b016-bccbf9545eb2","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":105,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"764208d7-1cf2-4f1b-aa2f-06828185db4a","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":105,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"8cb24f9b-2d7e-4d8c-8f69-57f234de13e0","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":105,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"70df3016-74b0-41e4-be4c-f5ca61c573bc","block_type":"box","text":"activities competitive with the REIT. REITs may own properties through joint ventures or in other circumstances in","page_number":105,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"457121ac-10a4-4782-802a-4e9aa5006c9a","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":105,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"73336e08-dff5-4287-ad44-3827599a49bb","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":105,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"654fe7cc-15ef-42c5-8dd1-304dec235df4","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":105,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"f76b3560-852d-4ff9-b8d9-0ce6c4ee4e13","block_type":"box","text":"markets generally or particular industries represented in the markets. The value of a security may decline due to","page_number":105,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"8ee0164a-92c3-4252-ba60-883e8f96f3c4","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":105,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"533c2e50-6d0f-4c4c-a9d7-b1c3339d1075","block_type":"box","text":"affect a particular industry or industries, or factors that affect a particular issuer or issuers, exchange, country,","page_number":105,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"9154cdca-7e06-4c7c-8e7a-6b6f5d9e9e5b","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":105,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"05cb99b0-7bc2-4b69-881b-29fdf5e42e6f","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in","page_number":105,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"785b7a25-71e1-4bad-b056-19fcfef15b1f","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":105,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"2873fdc1-6518-4478-b538-f1cfa6136b42","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":105,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"589c9446-8091-4428-8772-bb720cd94cc0","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":105,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"d189ceab-04ee-4662-8d7b-24e4b6713f93","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":105,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"87071e13-8c27-4c95-a6c6-753838874b88","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":105,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"81c7a82a-f5c8-4f06-8226-735a72fa27e0","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":105,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"c5df2410-8654-45a7-90e7-e7bb1e3d0420","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":105,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"d9dbf54f-60eb-469f-9238-1e5f121ab08c","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced opportunities to find suitable investments to","page_number":105,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"7a59c6ef-cfce-42e8-8daa-b93e30d972a9","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is important to","page_number":105,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"498829ab-0b94-400e-a8ed-b269e8d2d223","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":105,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"9d5f4f80-f642-44b8-98c9-c044d8c13504","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":105,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"52ecbd5e-1a8d-4b27-83c8-49f720ecb2c4","block_type":"box","text":"conditions.","page_number":105,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"a1150bb4-806f-473b-83a0-1669247f1d5c","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":105,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"fe68608a-3780-4ea4-9f75-36f1d0968302","block_type":"box","text":"a particular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":105,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"793b0dc5-a03f-44f8-ae4f-1336dfcba4ae","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":105,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"6f9e7ad9-b8a1-42d5-b4ad-bc18fee0ac4a","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":105,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"36f03660-f73d-4bbd-83a7-8e6a1c7ec552","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":105,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"00e524d6-b3be-4894-b485-de651274bcac","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":105,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"60ea93c2-7ca7-4539-be2e-4b99c7c18030","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":105,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"1cb0eef9-7a67-4a2e-8394-0f5a3f8c1755","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":105,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"87a1b68a-898e-4584-9bc2-25e9a885643c","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":105,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"a563549a-3b56-4535-87f6-c9fdf570b348","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":105,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"6fe50a26-b50f-444c-ab70-183b991123da","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":105,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"39c232fd-1198-411f-916a-5162b044c1c7","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":105,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"536fe226-0cbe-433b-8227-91783af95f4f","block_type":"box","text":"affected by such events.","page_number":105,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"27b2a49d-f67d-4810-b86b-cfcb17b56607","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":105,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"013e6d8b-6351-4c9e-a670-e2d2ce194fe4","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":105,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"445a6f04-8ceb-4f87-a214-7959c7d7d824","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":105,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"c5001597-7e06-4012-9bd8-dfac649244e8","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives undertaken by the U.S. government","page_number":105,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"05123e44-9037-4897-9904-0e364ea9f9a3","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":105,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"dca79cf8-be3b-4203-970c-0cb4a7a316b9","block_type":"box","text":"that could create uncertainty and instability in domestic and global markets and could adversely affect the","page_number":105,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"5421d675-da33-4739-9706-ed0a04e4d516","block_type":"box","text":"investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international","page_number":105,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"2d299393-80b5-4aea-a076-566351d611d9","block_type":"box","text":"trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":105,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"be4de237-f346-4968-a17f-f859cbd9e2b7","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":105,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"91bde3ae-918e-43a7-8543-ee15fccb8511","block_type":"box","text":"States, including a contentious domestic political environment, changes in political party control of one or more","page_number":105,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"07967740-1045-42c7-9917-f4391cf98fa6","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":105,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"85dac6bf-0210-4216-90fa-666ca2b998b5","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":105,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"0efeefa5-ca12-453f-9630-f32b16f575d8","block_type":"box","text":"II-67","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b2066b27-9c40-414f-8e53-0b51390f7a51","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d627cdce-eed3-40da-b4b2-c6dc89130f97","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":106,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"bad986ad-5f47-4895-b855-29f6421edd0c","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":106,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"89c77972-1667-4b5e-8e85-2f4a2796fd85","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":106,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"b2dd0c30-946e-436b-8ad6-25db202929e7","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":106,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"e6af5139-199e-4aeb-94fb-2e3e32af3f84","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":106,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"ebc7c2b0-62f3-4885-a8a4-d9545c334fe3","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":106,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"79b17206-074e-4a99-b27a-a44d8ab8daf2","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":106,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"054a0f48-77a3-46d5-a664-ec5920724dbc","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":106,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"42d46aa4-0730-4bb3-bd41-9a1f7ab2f067","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":106,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"a0bd32aa-e3eb-4ba1-96ee-97cf5a2c71c4","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":106,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"7616461d-8b22-4046-9235-66fa6fa4d6c9","block_type":"box","text":"investments.","page_number":106,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"9471d2f4-2467-4f3f-b828-b98f383cec4d","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":106,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"f40eec79-6ceb-444a-b170-440e47b14ed6","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":106,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"01f8aa3b-f50b-4f44-9f2b-6da39eb97886","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":106,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"76aae1d8-28bb-4a25-afab-a8772cddfef4","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":106,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"4de7c30b-b284-48ca-bc7a-6a7c2fae11d0","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be short term or long term, and","page_number":106,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"55ca256b-ec09-4fe0-97ba-0dc91cd74e01","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":106,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"4e814f9f-be8e-45ca-b1ab-003891b1bb74","block_type":"box","text":"operations, and negatively impact performance. In addition, the impact of infectious diseases in emerging developing","page_number":106,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"30907065-7662-4aab-9bc1-ada44077daa5","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":106,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"7558dd10-93a6-4ef8-a0e4-3da878da728a","block_type":"box","text":"Legal and Regulatory Risks.","page_number":106,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"73be50e1-8235-44d0-9a57-cb3102491beb","block_type":"box","text":"The Manager is part of a larger firm with multiple business lines active in multiple","page_number":106,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"fcce9c05-01ec-4a9d-96e9-95cca33f1bce","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":106,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"8c61a7ee-a253-4cec-b8b2-c891131776cb","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":106,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"f254a805-4472-4c3a-b271-7cc2c5fd52d5","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":106,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"19592e4a-0e5b-498b-851d-8d1ff735bef2","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":106,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"e436f0dd-8087-4883-a30d-ff3fce236aa2","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":106,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"2bb36eb4-09b9-4a54-873d-d94d56333621","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":106,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"2bd33b33-42c9-425b-b784-876f2ef4ac30","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":106,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"abd337d5-c0c1-469b-9ef1-5496e2ec39ed","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":106,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"8fb46e0c-3998-494a-a5cf-b39f6dd34acd","block_type":"box","text":"reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":106,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"d6565b8c-e7b0-4ca6-93e6-c43b34f22f81","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":106,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"36a3b590-2097-479a-9818-2704ee1a75b5","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":106,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"38fd5d1b-d271-42df-94b2-b624bfb34402","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":106,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"88c59824-81f0-4329-bc2c-d849a4d7d167","block_type":"box","text":"international trade relations, certain tax and immigration policies, and other aspects of the national and international","page_number":106,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"3ebdea99-3db4-4cf5-a5df-efee5521ab80","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":106,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"3aab3ee1-97f2-4a02-ae91-851b9acf4907","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":106,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"9836a7d8-5469-47cf-976f-40dd3aa571c5","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":106,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"4c3b7805-8711-4a64-95ad-44a79247832f","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":106,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"4228d71d-126c-4b11-853a-be29987dc74e","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":106,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"e722029d-be01-4296-b4eb-3e22b8a53489","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial performance of a","page_number":106,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"3f7a08a1-73b1-478a-8d5d-3c867c790efd","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":106,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"812b753e-ce1d-4567-89ac-3ed59423a912","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":106,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"b426e9a2-e7d3-496b-9694-c01980636134","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":106,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"e26b01da-fce6-4e08-88d5-3472b2265fc7","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":106,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"e9e3b48e-7912-4bd7-a537-ce7f3f65c1ac","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":106,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"081aae9c-964c-4a57-aa75-9383a901a48f","block_type":"box","text":"Geographic Risks","page_number":106,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"8da17798-a8d9-472f-a0b2-a2b28497db3c","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":106,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"4f3f699e-d9c1-4c48-a134-62ffb47b48e5","block_type":"box","text":"to, parts of the world affected by natural disasters such as severe heat, earthquakes, tornadoes, volcanic eruptions,","page_number":106,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"2d843971-7b0c-4d96-8f06-0303e6ffe1eb","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":106,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"0a6b8de6-1e05-4379-af04-9b0f63489731","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":106,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"7b78ad5d-0507-44da-b0d5-b86d61c49135","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":106,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"2039e9a0-140b-4821-80ad-0a18e7446ebc","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":106,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"0bc806cf-b0d3-474c-b26f-8f916498c93f","block_type":"box","text":"Fund.","page_number":106,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"1aaa8350-46f0-459c-9549-897ab943d013","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":106,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"2345f253-eccc-4d41-a4cd-1ec89bc25c89","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":106,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"83f72051-e2f3-4b45-a058-f0f6d83d9551","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":106,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"3a8f6d8c-48d7-45d0-a04a-fbd0fbe0b91d","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":106,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"cddf8a59-12cb-4299-980e-c59f1f9113eb","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":106,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"b857a502-66cd-4ac5-adeb-183c5ef0651a","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and certain derivative instruments)","page_number":106,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"c92608ae-1c0f-46a4-a25b-99598687ffe3","block_type":"box","text":"II-68","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b18c201e-bab4-46ad-b8a0-c8e7188d2ebc","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2ac6604b-ab43-482e-a6cf-e1c7189e10ca","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":107,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"8b405419-9ad7-40df-a329-ce54e95a3238","block_type":"box","text":"imposed by a regulator or by counterparties or otherwise may adversely affect a Fund’s performance and/or net","page_number":107,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"3c725f37-7611-4da9-820a-740084f01fc6","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":107,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"2331f652-81a7-4edb-a8fb-24fd4310e01d","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":107,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"03e27339-fcb2-482b-9413-4fc9bcff1deb","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other","page_number":107,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"eb7f6d0a-75b7-407e-915e-1873313141e4","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":107,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"77c269fc-2388-4b03-947c-cdce6eec6261","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":107,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"e0c0ce86-6259-47e9-aba3-e69164cda44e","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":107,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"44ece816-6f0d-421c-9e58-0213fb4d775e","block_type":"box","text":"transition away from LIBOR led by regulators and market participants as a result of benchmark reforms, LIBOR was","page_number":107,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"f597e97f-e424-4202-b809-07878c1f43c2","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":107,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"3a329bcf-3d64-4155-a27e-99f33fbf6fc0","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":107,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"21107305-0fd3-4437-9fd5-cc09d7de09f7","block_type":"box","text":"e.g.","page_number":107,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"6f30c195-e9e0-47cc-a3dc-d3215a246d40","block_type":"box","text":", SOFR for","page_number":107,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"e7bbc860-a7c6-4ece-acd4-5f61cb4d1c04","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":107,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"6275b8d1-d2f9-4ae8-a709-e862c931b11b","block_type":"box","text":"associated with the transition may remain that may impact markets or particular investments and, as such, the full","page_number":107,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"012fd6cb-2971-4682-a63d-8de4b8579a2e","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":107,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"f6d98bc0-fdd6-4b66-a3f1-ff4729eb5bab","block_type":"box","text":"determined.","page_number":107,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"dc624a46-4af5-4c87-adbe-9dff21bf57df","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":107,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"040ceffd-42a9-4af9-a34f-7f58ca989fcc","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":107,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"34e6ce48-de50-4da8-be3f-ab21a258bd07","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":107,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"6a47a1c8-2ca9-40f8-8df0-a0e22265753b","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":107,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"687cd18e-0b4c-4ed7-9d5c-600426538657","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different short-term","page_number":107,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"c46971c7-2eb7-40df-bf0e-cdcf23e54c49","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":107,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"fb2ff840-d19f-4196-a084-c8337b613c68","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in certain respects, to bank credit risk and to term interest rate risk.","page_number":107,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"087e3f68-2b6c-4611-8deb-b31583f99bac","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":107,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"942dede4-5961-46b5-8c2d-cfb9eb501e1e","block_type":"box","text":"largely insensitive to credit-risk considerations and to short-term interest rate risks. SOFR is a transaction-based rate,","page_number":107,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"3d9cc40c-6fe0-4bec-9cd3-4085d5345d93","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during certain","page_number":107,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"af98563e-5093-43ad-be05-a9f294495c11","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will perform","page_number":107,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"7a70b9cd-8c59-4404-af11-4b909f89cc39","block_type":"box","text":"in the same or similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based","page_number":107,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"b36e0dad-65a2-4818-90c4-bb473359879d","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":107,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"d82e7817-316f-4eb9-ad38-4f9fef5a5050","block_type":"box","text":"2018. The future performance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":107,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"c769c1e4-5396-48e4-9528-7b1601f37fd0","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":107,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"70f3dfc5-7628-436b-abb4-d7b41098cfdc","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":107,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"5cbd4d88-70b9-4da2-bdba-b8b45ab888e0","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":107,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"61970dd0-ef71-48ca-a5d2-c933b589b578","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":107,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"4a5c61bc-8118-4c47-84de-95ae4bbe48bf","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":107,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"1ffba4e7-3b43-4732-a83b-6f3a265a81ad","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":107,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"358b9d5f-2f44-42a2-87e6-ec1022b022d5","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by virtue","page_number":107,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"a233d1c1-31b8-48b2-9cd8-db219908320f","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":107,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"f65b7d8c-26ab-4564-9547-08de68ca5b27","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":107,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"f414b43a-1655-4348-942c-9d5308e5d4b3","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may further change","page_number":107,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"5b8a2f96-5233-4569-a30d-1e1395a8db9a","block_type":"box","text":"in the future, with the result that relevant benchmarks may perform differently than in the past, the use of","page_number":107,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"135cb80a-3663-44fe-8c51-9044c97a336d","block_type":"box","text":"benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and","page_number":107,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"1f489fb2-3aee-4187-8175-b5cce8aef572","block_type":"box","text":"certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":107,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"c8e7b6e8-2c07-4093-a2e0-9bdb19cf189d","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":107,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"747b9d89-e7e3-4343-9208-d95b734bbf59","block_type":"box","text":"consequences which cannot be predicted.","page_number":107,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"07beba3b-e86b-4c0d-8438-e6e4789d2887","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":107,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"327cd968-5c7e-48ca-8b4f-424ffca27692","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":107,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"1547f65b-59f7-41f7-9523-834ed9b3a5fc","block_type":"box","text":"sale contracts, the other party agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":107,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"6ad3ae5c-0fd1-4d20-b2a7-b4b9c4da9451","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":107,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"cd8fd98e-47b0-4bc3-b987-29f99b30bce8","block_type":"box","text":"term of the agreement.","page_number":107,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"5c7e97e1-87b6-4fbb-a08e-f439c57d036b","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":107,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"f6b5bf68-80ba-4b11-a2a8-f3100af76fab","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":107,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"09743f7a-733a-4079-9ec7-9479ccb7dd95","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":107,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"112a252d-8ce9-4ca0-9a64-e64e115a9a1d","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":107,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"84d897ef-c7a2-445f-a454-613b99e6c30c","block_type":"box","text":"accrued interest. A Fund may enter into “tri-party” repurchase agreements. In “tri-party” repurchase agreements, an","page_number":107,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"7bbe816b-3ca1-412e-8136-f84c6db5bf8f","block_type":"box","text":"unaffiliated third-party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":107,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"ae8f7269-55d3-435e-b64f-b26e667069ef","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":107,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"67927b08-f3e7-435b-a2c9-13d87e37d4c9","block_type":"box","text":"II-69","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3222245f-4870-4173-879c-2f76152983af","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a847bf6e-407b-4c93-a736-80b4523c2df9","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":108,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"3939a5e1-5aa1-4e78-8b13-5637677c66f2","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":108,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"69baa535-540a-4fb2-b025-6ae1b5a758cf","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":108,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"821915a8-ce8d-4f19-8121-e9a122e2da2f","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":108,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"b58ff8d8-1746-487a-a86e-edc91a543e2f","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":108,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"2615fcab-dbff-4984-8ad2-79889c3aaeaf","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":108,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"6f48a629-dcdd-4d64-afb3-7bd3e578da82","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":108,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"bd13a13d-94be-45cd-9a13-fff1caa28fd9","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may have","page_number":108,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"8bf9f90c-e5a9-4d24-ad5f-d1df789a968a","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":108,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"c52620c8-91ac-4e38-a101-87cec35904ff","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":108,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"dbc09158-14c9-4be7-af36-b59b465c6230","block_type":"box","text":"sub-adviser will monitor the creditworthiness of the seller, and a Fund will require the seller to provide additional","page_number":108,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"135c492d-5305-4253-938a-879b7ffb7226","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":108,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"9572ecd2-4980-4f3d-9a2a-4ef54d8c09e8","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":108,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"d4a71976-ce35-43c1-a487-564b99dc46b5","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":108,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"3e8c4e14-b5ab-4f1e-87a8-7de51dd176c0","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":108,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"0045097a-68fb-41f2-a7a6-d40134365e8b","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":108,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"4391495f-76cb-48f0-b69c-772112cb6397","block_type":"box","text":"or by another authorized securities depository.","page_number":108,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"9b08682d-ca43-4bd4-8f52-6d09f1fdff1a","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":108,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"2d9eb745-fbb4-45d3-ab29-84b04333e2c4","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":108,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"5ac88d4f-5d50-4fa1-8a61-c1632fcc9eef","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":108,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"4b470b38-1a85-42fd-911e-883928353bd4","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":108,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"3b318974-91c1-4e46-b297-5b83552256ee","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":108,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"e12f01fe-8da2-4bf3-951b-cea005b9a215","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":108,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"f02bb6e5-7f92-4af2-9c84-a78ffba527f9","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":108,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"3f220af4-a78f-45b4-9d5c-90916fb2a161","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":108,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"a3fdeb8f-f948-4dcb-8174-cfb272f99553","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":108,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"b1ec46ad-894d-445c-9c25-cd405b033f26","block_type":"box","text":"the repurchase price.","page_number":108,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"3f40b961-8f52-4c17-9dab-b581c69436fb","block_type":"box","text":"In any repurchase transaction to which a Fund is a party, collateral for a repurchase agreement may include cash","page_number":108,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"8eed04f4-6cf8-42c3-a363-86258af9960f","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For certain Funds, however,","page_number":108,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"4779f7a6-5af1-4439-9014-82ba012565a0","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":108,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"c24af568-1f78-48c4-a01a-3d091c1cc825","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":108,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"3769a1bd-62ad-4ebd-b5a3-9c0d72f70c22","block_type":"box","text":"strategies without the repurchase obligation.","page_number":108,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"62c6700f-10ea-4034-b0a6-3fb8ac84b260","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower quality","page_number":108,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"90a89cfe-f796-4f83-b25d-e555325c0b65","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":108,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"80f636c3-c45e-4e02-809f-53c12c4cd44e","block_type":"box","text":"collateral and collateral with shorter maturities. If the repurchase agreement counterparty were to default, lower","page_number":108,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"d3817feb-34f8-4be3-be22-46da6b2fac78","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterparty default and","page_number":108,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"e03917f7-4076-4fd7-b2e1-33df31ff7462","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterparty’s repurchase obligation, a Fund would retain the","page_number":108,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"6c897a8a-c545-4bd9-a5f5-9500f229445e","block_type":"box","text":"status of an unsecured creditor of the counterparty (","page_number":108,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"b97b4e0c-2ecf-4e7d-84e6-fdcde6021f0b","block_type":"box","text":"i.e.","page_number":108,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"5897146b-88a1-4141-aca3-e03de0f24144","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":108,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"aa49c789-aa4b-42f8-bc9a-494675f7d6a3","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterparty) with respect to","page_number":108,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"3d6cc2f6-34b6-42b7-bab1-a8a99c4267b9","block_type":"box","text":"the amount of the shortfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":108,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"1f3f3136-23ce-4332-b346-8cf771b2dbfd","block_type":"box","text":"and income involved in the transaction.","page_number":108,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"c71a8137-7514-4da8-ad95-8343cd22b381","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":108,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"21206f74-295c-4126-a108-e13282c3440e","block_type":"box","text":"their affiliates to include in certain financial contracts, including many repurchase agreements and purchase and sale","page_number":108,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"916714e5-6ecc-45e8-9eb4-bfa958324512","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements,","page_number":108,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"f1cfda4d-003a-40db-88c2-4e749fcfead8","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":108,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"6b00e30c-1e3d-4ad6-82f0-9954dd844d11","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":108,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"dc58b836-f1ed-43db-8dc0-18e3d12f0681","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":108,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"61e74355-0b88-464c-b6aa-418768394fd1","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":108,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"14729fba-6439-4264-b751-03a493a48227","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":108,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"32d2b659-3b9e-4806-935b-cf0c0cafe5da","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":108,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"b03cfdb8-dc44-4599-96d0-ccb792dcdfb9","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":108,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"6c8287cb-30aa-44f9-81aa-182d25669dc7","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":108,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"0f3395dc-4338-4f57-a9d4-534256f31754","block_type":"box","text":"adversely affect a Fund’s performance.","page_number":108,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"30ef6130-8cf0-41cc-97a1-9307425bffbd","block_type":"box","text":"Restricted Securities.","page_number":108,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"11abcbad-5b6c-46d6-aacf-2f7c51294311","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":108,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"23af2f4a-dd4d-4257-80e5-4909708c4e4a","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":108,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"fa5fa3a0-09f3-4200-af60-0c34db3ab7ef","block_type":"box","text":"II-70","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"14d3ac4a-72f4-4fa1-99f8-8b4036db6886","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4b7a3fb9-3d4e-450d-9eba-299518f62355","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":109,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"257e9e3c-8d22-430c-97f4-03d99c9272db","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":109,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"2f9584b7-1e5d-49ae-99ca-175c59bb09f8","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":109,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"e9264679-43e5-458e-9d4c-3c4a9434004d","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":109,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"8b1fa8d8-e706-4026-9d33-7f3a2452005b","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":109,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"546f0013-6b33-4918-b899-81cab7aa0f00","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":109,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"b38e5373-20e9-479c-a142-09b19924000c","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":109,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"c4898882-8afa-4d69-95a0-3ec950b81058","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":109,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"f2c27110-15af-4b47-9a2f-47c347fc556f","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":109,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"ef58900a-88a7-43b1-832f-2839629e1ee9","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on certain transactions,","page_number":109,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"fc837f64-80dd-4c34-bcc0-606bdcb16497","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":109,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"4ce96fd6-898c-4c3c-90fe-822a26090d5f","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":109,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"a75c1f65-41d8-4146-8ce8-d97e760214e8","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":109,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"656dae0e-2469-4a3b-b3f8-4df608b0a528","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":109,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"2f171f84-17a0-42bf-bee0-a7cb959bfcb5","block_type":"box","text":"character of the issuer, which party (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":109,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"12e8b8a1-7c19-42db-8203-97f94534e42b","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":109,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"971459db-b1e8-4a61-b5d6-6f317fb0f61a","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":109,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"247d054c-28a5-42ac-8cc5-d257bd2844d2","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":109,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"af9f60d6-c20f-45c7-ae13-bbcdf4d75ce4","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":109,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"17748ab7-4901-4f10-b51a-041444e02597","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":109,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"dd900f3d-32f1-4cde-b9fd-cb2f91bcf38a","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":109,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"41b595cd-a727-4cfc-8372-927994e1249f","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":109,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"52858bff-ba68-4c35-a092-b37ce001d1e7","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":109,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"d607d3c0-2c2a-4b30-9e3f-a784142005b6","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":109,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"329e7724-3e39-42a9-8fd2-b29f34be9ffd","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":109,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"8856944d-25e8-465f-a3b1-bc05246d71b7","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":109,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"5572d1e2-3158-47ed-85a5-bbb2513f22a8","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Certain of the Fund’s investments in","page_number":109,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"3d5d9c69-6b11-40b8-9a9b-3994322b2560","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":109,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"474c0259-cab4-4f83-8f72-9bf692c5a2c4","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC reporting","page_number":109,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"c57b4efd-d3b0-4c16-8ab0-ec141cf4fc25","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":109,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"785dbe95-df19-42b2-9dfe-d40d9f4fc865","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial reporting. As a","page_number":109,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"50746256-8d80-4a00-9899-559691e293fe","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":109,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"a4f785a3-5d1d-430c-9d97-745bb50abb6a","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":109,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"a1ea273c-cc89-410f-a0fd-ca772f031e34","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":109,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"da01f776-c0e0-4e3d-99d9-0de86f3456ca","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":109,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"6f9170d0-7ad3-4cdd-b7f4-81518fa22006","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":109,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"a8993e5c-3195-474d-8b69-ff253b536cb5","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced proportionately as the","page_number":109,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"d4895079-f9e5-4c70-8d60-32a4d0b28578","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":109,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"90c35f58-65e8-468d-acc6-4e2b3ea6e019","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":109,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"0e44933c-4b85-4a46-a878-d3f5544454d1","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":109,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"e2d16f2f-03e7-496e-9f15-6c71ea82a610","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":109,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"2ab5a4a7-1312-475e-98e9-4b9ccb5d9464","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":109,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"384b9c79-a678-4140-b972-6e31a8bbeaeb","block_type":"box","text":"offer other liquidity opportunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":109,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"a2c21b36-84ac-4269-bd6f-b0c33c895149","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":109,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"7bc0aab3-3853-46c8-a50c-73ae17da5b7d","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":109,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"67d109e8-4662-4c7c-84b6-69440c466e7a","block_type":"box","text":"conduct portfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":109,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"a72d4b37-1860-408a-ad1a-37dd7d276cd0","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncertainty. A Fund will be","page_number":109,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"66a829cb-c5cf-4684-9556-7704b46bed18","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":109,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"55eb2deb-c71b-4db3-ae45-a94968197b0c","block_type":"box","text":"investment opportunities may increase, thus potentially reducing the number of investment opportunities available to","page_number":109,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"ecdb90e4-d1b9-42fe-a973-91308eaadbbc","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":109,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"bf78a7b5-bd9e-4181-9024-a386c6195d20","block_type":"box","text":"investment opportunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":109,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"38bbf182-dd21-40fa-b622-7ca17712bd09","block_type":"box","text":"especially as that Fund grows in size.","page_number":109,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"ae59a118-92b4-4a18-bddd-5d0fcf9a6b83","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular, restricted","page_number":109,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"3c228b11-d4b5-4824-81e5-192353ca6507","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":109,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"a3586cd0-2f84-4f31-9fb9-b3728278727e","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":109,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"cb532be7-b927-4964-8282-387526b8660e","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncertainty and subjectivity of","page_number":109,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"f8aef697-bd26-47fb-ad65-65808d796e61","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":109,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"45b2a8f0-3a95-4fc4-8e4f-709de29365d1","block_type":"box","text":"II-71","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"93f0f61d-1f73-415c-a48a-9e54245baf0d","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ffc2c794-947f-4fb6-9fc8-d3424fd07ae5","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":110,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"36e02488-ad7b-4828-adde-d0cc93be0b7d","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":110,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"9c1c5cd0-19ac-4203-a7e3-a9136f053783","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":110,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"9feaba1c-82c2-415d-bf62-b33d532e752a","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":110,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"fa50eeb0-f150-45c9-a402-459019678eeb","block_type":"box","text":"Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing opportunities for","page_number":110,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"e1b93e97-c459-4010-9315-a5cf678dd8fd","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":110,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"690286c1-16a7-4518-a7ce-6f4cdd5e6deb","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":110,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"65545baa-4a32-4408-99ed-b35ae2305300","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":110,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"68524f5c-9851-46c1-9177-b5e81f714a7f","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":110,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"bf1d3216-4639-4473-826a-388945a961f3","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":110,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"38d4600e-c0e9-4546-ab89-b06e72e0f221","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":110,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"0bbdf6c9-78c8-42f3-b202-40f9f6d13b49","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":110,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"00916632-e367-49b8-8e0b-cce71d1bdc93","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":110,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"6cd4e5a9-3284-4f8b-a36a-da913f06d3af","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":110,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"ae1f18ec-fecd-49cd-8cc0-b1e86410c70c","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties","page_number":110,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"2ef41d0b-c381-4de4-ade9-45cb6e23a3e0","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":110,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"d9ab13c6-e5b8-4346-a822-8726f6cfd2d9","block_type":"box","text":"to another party and agrees to repurchase them at a particular date and price. A Fund may enter into a reverse","page_number":110,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"a158bb80-a11c-4e53-926d-ca93da0d1c96","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":110,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"9f6ee03b-9100-4965-a4f3-1ac5e65e56b6","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":110,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"e903b1b2-8354-45e5-919c-bd9acaae884c","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":110,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"2de114c6-4aa4-4296-a88b-88454bceb9ce","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":110,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"78b7938b-c11d-4d00-b551-06b755703147","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":110,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"c043c637-ddd4-4208-865e-98a042ab79cf","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":110,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"edae9a61-8bfe-4559-85c0-d335bcf40d8a","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":110,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"2b5afe63-f588-4e83-b4b1-f1dbc38237d0","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":110,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"51b5c7d5-a073-4b42-b435-9c64c5e19e23","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":110,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"2bfa0a0e-fea7-46d7-a3b4-741aaab473ba","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":110,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"ad5751e4-be0c-4d05-8908-1c600f5db47b","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":110,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"59c0fd5d-f914-4cf2-a1a6-b46bbcb48016","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":110,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"497563a3-4592-4ff5-a589-f28dba490de3","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":110,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"423eeb22-0370-484c-83eb-f48a54ca5f69","block_type":"box","text":"similar financing transactions (","page_number":110,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"474b9b21-02ea-439f-8b24-08746c628ab2","block_type":"box","text":"e.g.","page_number":110,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"f3074595-8042-4928-bef4-6bfc93530d0a","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":110,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"3cbd45cc-7530-4e45-8e62-3a3debfa199f","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":110,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"28993685-ec8f-4ee1-be79-cd8d32f59c96","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":110,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"8ac7db51-ef05-4131-980d-a00254811059","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":110,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"630fcbb8-cbb6-4137-bdfb-7a82b6381528","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":110,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"2b33b70d-f463-4844-a0b3-3b8ac362a053","block_type":"box","text":"finalized rules that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":110,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"5a9a51a8-9264-415d-936a-85e1f0ce7ef2","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":110,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"ca316893-216c-4eac-8395-5b421ba9e472","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":110,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"b1572151-50ae-4267-bd2d-04410dc132a5","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":110,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"d3be0a60-21cb-4ba1-b2af-d857cd040ec0","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated counterparties","page_number":110,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"33e75001-4b66-4dca-8a96-9381ffeeae41","block_type":"box","text":"and certain of their affiliates to include in certain financial contracts, including many reverse repurchase agreements,","page_number":110,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"b354e87e-cee7-4f4f-92f7-4dd27ae34669","block_type":"box","text":"terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements, take","page_number":110,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"08ef2249-2663-4f51-8e21-14ab7ccb241f","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":110,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"b80a0f0f-450b-43a1-adb4-b5ab2ef5af14","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":110,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"45abadce-1b4b-4562-a883-fde24e77d978","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":110,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"49d932cc-131c-4951-94f1-5c5a9fbf3233","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":110,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"0ade3ad7-7ab5-430d-b5ad-a4e38fda3f66","block_type":"box","text":"amounts to be received under such agreements.","page_number":110,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"a0e2470a-daf1-4c58-aac1-72340863d7f9","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":110,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"1f3c96e3-48df-4cd2-b532-5884f7b2ea8c","block_type":"box","text":"Certain Funds may participate in rights offerings and may purchase","page_number":110,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"07b0765b-8536-4557-a64c-214e77e8588b","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":110,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"bf5c9628-1553-4eb2-884c-82d6d4f06367","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":110,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"78cd8e61-66cb-4c7b-b8ca-883287d7b2ef","block_type":"box","text":"normally have a short life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":110,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"7b87dfe9-acaf-414e-8fdf-56395c6016db","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":110,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"180874ac-4d51-4b19-bc3e-767470701af7","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":110,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"5213fe41-d072-442a-9b12-6c2213bcf459","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":110,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"41749074-196e-4b66-814d-4a198e31eda4","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":110,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"34f71e48-aa84-4c69-b426-43597e161e1a","block_type":"box","text":"II-72","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3fb3a7dc-274d-468d-8bb6-707f6a2bee0c","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b388d114-71c3-467d-a4db-161ce23bfbf5","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":111,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"778ef4cb-8e98-4b3a-9e50-6dfc2a508fd0","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":111,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"b5929ff2-4c0d-478e-966a-72d09838a3f6","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":111,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"bca2e5ef-a44f-44e7-a6f0-b9f073cb2416","block_type":"box","text":"Rule 144A Securities.","page_number":111,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"95fc03ce-20ec-4370-8ed2-7c8a779fc783","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":111,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"ab8af4da-997a-4769-b526-54a2fde4662e","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":111,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"4e92f382-cb6a-4c4a-bbd6-c6bc884f71ed","block_type":"box","text":"Securities Lending.","page_number":111,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"2863716f-7998-4a97-b833-a3c7b7062886","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock determines to","page_number":111,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"c81772d6-5636-4d34-9b7a-b4595a7f23d0","block_type":"box","text":"be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":111,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"8dc44299-1ed6-4905-a09d-46a983e2af10","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":111,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"5a851b50-5e25-42d7-84f3-6fab9da95df7","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the particular Fund exceeds one-third of","page_number":111,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"96d717aa-8cbb-489c-bc0d-3cb5f10133dd","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":111,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"42feca41-e288-41b0-8d46-7c098b9a33c2","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":111,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"f5fac690-4dfb-4e13-8983-3958f1b295dc","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":111,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"d3b8a207-3da9-40a0-9f4c-63426b8141b9","block_type":"box","text":"the securities were not on loan.","page_number":111,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"43bf8898-0296-42ca-a3e4-e7a1a24d8003","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":111,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"d760bcbc-9c0e-45ed-ac0c-b8697928ae38","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":111,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"d6e7f6e7-1f3b-4c21-ba91-bbcd1e37cb90","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":111,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"a71fa245-97e4-4dee-830e-d76edb2d10e0","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":111,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"6298565e-300b-4eb2-b06e-9664fbe1d37b","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in certain short-term","page_number":111,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"d919f6d8-9706-4c56-9880-59c0ce549647","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":111,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"0f64768a-4472-4cf4-953a-28d0db261767","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":111,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"61a83a74-c4ba-456b-aeed-41808ee81daf","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (","page_number":111,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"67b4f164-8aed-40ba-bf15-b0483e7fccd6","block_type":"box","text":"i.e.","page_number":111,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"ba89b0af-a51e-4bc7-bf3d-275094b91230","block_type":"box","text":", the risk of losses resulting","page_number":111,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"1dae1ab8-77ea-4eaf-a2f4-e17cf0038205","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":111,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"8b8353e7-873c-4bfb-b8ab-55520effa4ab","block_type":"box","text":"i.e.","page_number":111,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"ca5fbd07-aa5c-4996-ab35-8962dc948c79","block_type":"box","text":", the risk of a mismatch between the return","page_number":111,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"5b3e8dac-5f8e-4ca0-a880-30fddcccf8e8","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":111,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"b0ec6d86-8e6b-4409-83e1-cb0c421c53e2","block_type":"box","text":"i.e.","page_number":111,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"600b4054-1cdd-4ad4-a6a0-771da703bc5b","block_type":"box","text":",","page_number":111,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"532e7ff5-7c79-42ed-9acb-66693031cbf9","block_type":"box","text":"the risk of a shortfall at default when a cash collateral investment is denominated in a currency other than the","page_number":111,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"c125bbcd-7fce-489f-afb6-8c085c52b8cb","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterparty and","page_number":111,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"9175be41-5b1f-40a6-8079-57c231a69dc7","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":111,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"4fc135b8-322c-498f-905c-084217301e71","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":111,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"55c099d6-7913-48c4-a982-d63cadeee3ce","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":111,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"077dadac-e2c6-4925-9004-31da6d6ffb0f","block_type":"box","text":"are subject to a corporate action and commit to the borrower a particular election as determined by the Fund’s","page_number":111,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"5cd2299e-d463-4748-bdf4-8de66e367012","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":111,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"760f3851-2bca-4a1e-9c83-e870fec44adf","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":111,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"2849f598-1925-42fb-97db-abc572ff0038","block_type":"box","text":"securities lending counterparty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":111,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"e4cc53d5-a479-4988-9d15-01cd7012e2e2","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":111,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"ef088351-21a2-43de-9984-f18c5b33d01c","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to participate in a corporate action event","page_number":111,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"84830eba-362c-486a-99b3-dd8647e654f0","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":111,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"8d6b6171-069b-45f9-854b-2e082521039b","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":111,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"0e00422e-fc0d-4a64-9c5f-14d4d9e066a8","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":111,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"6bd76e3d-b81e-4dbf-9986-5b3ccc386cfc","block_type":"box","text":"could lose money if its short-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":111,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"24110107-17cd-4670-9a78-b18f9d835a38","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":111,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"f9caa2bb-ca32-43a4-8cf2-5991539968b4","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":111,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"930aec60-52be-48ce-9d83-42a499469ee1","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":111,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"19c66188-b798-4d41-936e-68a77d43d146","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":111,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"3334d10c-8377-4e6f-acdd-fc4f11829bc5","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":111,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"7ada7d53-8124-42cf-8d89-3e7e4d0af5d1","block_type":"box","text":"paid to non-corporate shareholders provided certain other requirements are satisfied. The securities lending agent","page_number":111,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"97833e65-f8b3-4ac7-a997-dd8885799360","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":111,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"702ff8b9-e2db-4b74-877c-e9950cb65c57","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":111,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"ac82d7ae-41ca-47ec-ace6-5821f251806b","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":111,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"9f1ab811-e25e-4179-8638-bee6aa57d028","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":111,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"43f23690-8d4b-4bd3-b111-514a6be53a5a","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":111,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"7b6851bf-0020-4ba2-a9c1-c29a8c8dec49","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":111,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"64b8e00c-4aaf-4026-8027-a3821cc05575","block_type":"box","text":"their affiliates to include in certain financial contracts, including many securities lending agreements, terms that","page_number":111,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"fcc6e19b-f2a6-4199-a65e-2b650853e4d0","block_type":"box","text":"delay or restrict the rights of counterparties, such as the Fund, to terminate such agreements, foreclose upon","page_number":111,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"c6d22711-8e65-402f-8a58-d8bbe74e49e4","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit support in the event that the counterparty and/or","page_number":111,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"9a573837-94cd-4a41-bef3-ec88488007ff","block_type":"box","text":"its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these","page_number":111,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"ef3821ef-a0d7-478e-9150-84db5ef27358","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":111,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"acc66a78-8164-46f1-aa0a-c36dd0034f44","block_type":"box","text":"II-73","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c0fb9f49-3151-4106-ab35-c016a4dbbee8","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d3f9d8a0-a2e7-471d-8a30-46a9035484d5","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":112,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"7c764f7e-24fd-45f5-a4ac-8311518d09a8","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":112,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"0fb923c3-edda-4c77-8220-001f92564882","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Certain Funds expect to provide","page_number":112,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"07e0c2c5-9187-4246-bec7-93f4c6169757","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":112,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"6f9ceb19-f904-40aa-a7a1-a73c3818df6d","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":112,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"2864ed02-7191-4dbf-ab12-938e572e3fbb","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction","page_number":112,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"fabbb7b8-61a7-4d9e-bbba-46addaab5e2e","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information about securities loans","page_number":112,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"eb4bd05d-aa41-400a-9dbe-4c8348674d00","block_type":"box","text":"entered into in connection with short sales. Compliance with this rule is expected to be required in late 2028,","page_number":112,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"34b32400-2e1d-43b1-b158-95a1faaee8ed","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":112,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"453cd8d8-e88e-4478-8d01-870786b34779","block_type":"box","text":"the current expected compliance date.","page_number":112,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"41446cb9-06d3-4fd9-9093-da8afb3a3d3b","block_type":"box","text":"Short Sales.","page_number":112,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"29bdeb91-411b-40c0-b2f1-26ebb057aebc","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential declines in","page_number":112,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"fd90d5dd-2f20-4f81-a9f9-d13a40169e5a","block_type":"box","text":"value of a portfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":112,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"9666d573-015a-494a-853f-288056c7f5de","block_type":"box","text":"Certain Funds have a fundamental investment restriction prohibiting short sales of securities unless they are","page_number":112,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"5ff7b1a7-02a4-4489-8d30-bd546794a0d4","block_type":"box","text":"“against-the-box.” In a short sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":112,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"06898539-1402-4081-9b7a-4dde7297e93b","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a short sale, it borrows","page_number":112,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"798e4844-2189-47df-9fdf-784d7c0512a7","block_type":"box","text":"the security sold short and delivers it to the broker-dealer through which it made the short sale. A Fund may have to","page_number":112,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"aab72ca8-c521-4e9f-a05f-e2736005d084","block_type":"box","text":"pay a fee to borrow particular securities and is often obligated to turn over any payments received on such borrowed","page_number":112,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"f95db8f6-2e0b-4d8c-a1ab-1d32dd0e2f14","block_type":"box","text":"securities to the lender of the securities.","page_number":112,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"cc62b4ac-ec06-4e7f-8606-9e16b3b04c59","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":112,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"628872d8-86ab-427c-93c0-629a04bd4800","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":112,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"1139773a-56c2-47b5-824d-00533e3c71f1","block_type":"box","text":"uncovered short positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":112,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"7e9f5693-00a5-44cb-b8c0-3651932ed2bb","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":112,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"fc98ea95-d752-4b5d-92fb-13be0335c286","block_type":"box","text":"market value of the security sold short. Depending on arrangements made with the broker-dealer from which the Fund","page_number":112,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"fb39c08f-de12-4ca4-aa91-3fee99483d6a","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":112,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"9d8392c1-d2c9-432d-80a7-acb272120589","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":112,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"d4dc28b2-9626-4edf-8910-e90564ce9155","block_type":"box","text":"Because making short sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":112,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"b589e3b6-8fc6-4e97-ab03-fecf9778c7a5","block_type":"box","text":"securities, such short sales involve speculative exposure risk. A Fund will incur a loss as a result of a short sale if","page_number":112,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"3322b10f-8c3e-4f08-8ce5-8f49058a8523","block_type":"box","text":"the price of the security increases between the date of the short sale and the date on which the Fund replaces the","page_number":112,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"adbae5ee-85d7-4adf-a587-9bcaea80f9bc","block_type":"box","text":"borrowed security. As a result, if a Fund makes short sales in securities that increase in value, it will likely","page_number":112,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"4d67bc57-9275-46ae-bd5a-24aeeac5823c","block_type":"box","text":"underperform similar mutual funds that do not make short sales in securities. A Fund will realize a gain on a short","page_number":112,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"a4793d2b-ad25-4f62-9f39-4feebfa3a5ad","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":112,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"bd46399d-593f-4b8d-94d7-caf6df23be78","block_type":"box","text":"close out a short sale position at any particular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":112,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"4ae3aa90-6f37-40b8-83a9-3e534e969a93","block_type":"box","text":"the price at which it sold the security short, its potential loss is limited only by the maximum attainable price of the","page_number":112,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"261cb894-7655-43d4-9358-941fcdfba127","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":112,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"514f9168-84d3-4571-9d03-b266a0fa3697","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":112,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"b1e6dcf9-d8f5-4767-9588-4f76250a9982","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its short sale","page_number":112,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"144cdcac-2ec2-42ac-98ab-e74099138c64","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":112,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"58025c82-e1fc-4420-aec1-d7bf3f8df21d","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":112,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"4d618c6a-84b2-4b11-962d-7f569a10ceb8","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United Kingdom","page_number":112,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"cf65848b-dae7-493d-920e-62640bf1162f","block_type":"box","text":"regulations (under which there are restrictions on net short sales in certain securities). If the SEC or regulatory","page_number":112,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"712db809-29d1-471d-98ca-8d16f829c891","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding short sales, they could restrict a","page_number":112,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"d74577d5-802c-4873-8535-b7efa8ee600b","block_type":"box","text":"Fund’s ability to engage in short sales in certain circumstances, and the Fund may be unable to execute its","page_number":112,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"a1178e2a-5aa4-4f21-a210-0697ec0a9664","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":112,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"ff4c552b-55ed-4c98-955a-6c967965eab1","block_type":"box","text":"jurisdictions may adopt (and in certain cases, have adopted) bans or other restrictions on short sales of certain","page_number":112,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"ac2b39b1-75ce-4404-9680-6fe33c9e2299","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":112,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"25ec891f-695a-4f77-ab4c-f9d44e410078","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute certain investment strategies and may have a","page_number":112,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"d5a972c2-afde-4bfe-bc04-b10eeab2ef5e","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":112,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"f70e5cd7-98dc-487f-b8f3-7c12d6350c05","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":112,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"cccf3182-9803-4fad-a787-f222126e518a","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":112,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"0ce7d256-5a42-4617-ada8-7c7b59f10d91","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":112,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"6563ca44-1577-4e2c-9c22-443ab12cf04c","block_type":"box","text":"potential acquisition opportunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":112,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"2cf90826-521e-49e0-8938-ce878e287a24","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":112,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"f1fe3982-ff70-45d8-9d60-37dea887332a","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":112,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"4c7e0eee-c77a-4e23-894b-fc3386a6ce21","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":112,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"3a936622-1469-4ca1-97d7-355c75f54ddc","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":112,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"44092ce1-7b7a-44a3-9f9c-85405fb90e05","block_type":"box","text":"II-74","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"72d3bc04-3eb8-45ab-80b3-54bd811b1a37","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"121bafc8-edf4-414a-a880-e3e5080edd23","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition opportunity.","page_number":113,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"04b8b7c2-b711-434b-a66f-8e2ee6372021","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":113,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"baf69b53-d4b2-4106-b6dc-b6709ece9dc0","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":113,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"eb8ef204-2616-42c3-a731-a4002e8cfd08","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":113,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"22b92253-431a-4190-9a24-bfa545bd39ab","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become worthless. Because SPACs and similar","page_number":113,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"165e9906-e9ab-45e3-98f8-44214c66e032","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":113,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"3a72b4ff-8f5c-40b7-852a-af7fa8dd99ef","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":113,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"a8658706-2451-48aa-8349-e9ad32b6c9b1","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":113,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"146276ae-c443-45d5-a9e2-8a40549034b1","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":113,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"a0b243f8-5404-487a-ac94-3af71d4312f1","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":113,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"61897e95-1921-4623-9d05-b14b1bd491b7","block_type":"box","text":"certain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":113,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"7557f840-6531-4b27-a136-181f6fef00a6","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":113,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"9a42cc96-fd0a-42e6-9a65-eb29cb588755","block_type":"box","text":"Standby Commitment Agreements.","page_number":113,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"c90a1faf-520e-4160-ab59-ad08d83aadf8","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":113,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"a155f8ea-e40b-4635-bdd2-2f3fe0719080","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":113,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"0968e064-8982-4cf8-8cda-ca73218c3bf1","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":113,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"87682676-89c9-44bf-a07c-f450d7192f56","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":113,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"93a45f69-e507-4b8a-8b40-1d044ea73e01","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":113,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"9f6e6d81-8a42-4fe2-a057-ed9fea8e69fe","block_type":"box","text":"advantageous to the Fund.","page_number":113,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"9ff33d2a-b85b-4f55-8701-8e0e6ae138c7","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":113,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"d1571c85-9207-438f-8c84-ec91d8f7afa0","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":113,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"1832498f-7cbc-49b8-95b6-2bba1f75043a","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":113,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"279bc20c-cbad-4aff-aa55-c69e2d750396","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":113,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"477f1f4a-100b-4bcd-a3f9-5de4828f8477","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":113,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"98193b24-9b18-4395-b090-1b835837a41d","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":113,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"fc0a7bc4-58e8-499b-9f36-fbd1ba021430","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":113,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"38fc7f44-af82-4037-b4c1-b477805a777b","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":113,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"c8c8970c-f4d4-4171-bc4e-4a6e8ffe570d","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":113,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"1daafb2c-20b6-414d-8d12-cae8a915b198","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":113,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"7bff7baf-5d98-4e26-868c-e39d32d44289","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":113,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"31cb9329-d813-4c80-89f2-58009dc262fd","block_type":"box","text":"portfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":113,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"9702de5f-6b13-4f2e-9944-26bd33e293b0","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":113,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"1c154598-04f1-471a-80f1-2371136df7a7","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":113,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"efc97c9e-a7b3-4fb9-8178-75e2fa4c73af","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":113,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"5d7a154f-0bb5-47f0-9adf-f2d77f7e1d17","block_type":"box","text":"Stripped Securities.","page_number":113,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"17dafd48-4488-45c0-9382-b0e09f86692c","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":113,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"115b3fdd-3d4c-4028-864e-61bae241e3d3","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":113,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"d38bf938-1c10-4852-b046-ae947c6a8896","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":113,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"55f8fc44-8ac7-4bbf-ab8d-3944a3ace6a2","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":113,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"be6b6139-db01-4699-8abe-c27202a0ff0f","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":113,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"bbd04887-ab34-4b73-a00c-ba7f76a71411","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":113,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"fb0417e5-76f7-44dd-83c0-2c22299d18aa","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":113,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"d70107e6-b5f9-4fa2-ad6c-67a3d8c04cc0","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":113,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"8b89ee83-d686-49e5-b8fa-c334daa232d6","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":113,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"23ba0f8b-5107-43bb-982d-d7932090bfcc","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":113,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"575e73ab-d822-44c3-9a1f-cd9a968d9dfe","block_type":"box","text":"Structured Notes.","page_number":113,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"4e01c64a-099f-4ce5-9e28-d51aece13962","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":113,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"917a250a-693c-43ae-b3a5-85e20f15c331","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a","page_number":113,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"55b8c3bf-9ad2-4abf-88cb-a6341ae58b16","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":113,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"25ef165c-64c7-4dbc-a020-14d433f083a5","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":113,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"8007dbe3-a015-4f3a-88df-89ce1c62f40f","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":113,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"cb47d822-9abc-4bfb-b612-dd39f015cd18","block_type":"box","text":"may provide that, in certain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":113,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"f50bcd04-7df6-433e-b601-a8e4895f213e","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":113,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"352b5061-b16b-4b63-a65d-c87295828943","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":113,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"cd824a9e-ad51-4fcd-bdf3-6ae8554791ed","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":113,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"39a13267-95d6-4b72-8f8d-8c77de027204","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":113,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"a8b4f727-063a-4676-9e91-3fca5f584501","block_type":"box","text":"II-75","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1c3397cb-3a37-412e-a6d1-91a4ba1542e6","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b96d582d-dd48-4a6a-9efa-99ef5ea0ce6a","block_type":"box","text":"structured notes may be determined by applying a multiplier to the performance or differential performance of","page_number":114,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"b1b01fc9-af47-4b60-9530-1ae1c8a6ddd4","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":114,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"ca66bc6d-3bf6-42e2-ba4e-7a7af7dae463","block_type":"box","text":"the risk of loss.","page_number":114,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"c85f9450-950d-4b0c-a699-e042196ef496","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":114,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"0014cb03-c821-4032-affc-484bd25ee61d","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":114,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"265b010f-d7b4-48cd-8c3b-0a60be77acda","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":114,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"ccccc43a-ad04-4469-8a7b-36cbb300fe07","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":114,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"930da63d-7556-44fa-ad03-f389a73aa585","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":114,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"74e624c2-4781-4dfd-a59d-520bf5ad58b9","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":114,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"056f68c3-9819-47f9-8784-c26932d422cd","block_type":"box","text":"Taxability Risk.","page_number":114,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"2b4a16f3-6494-4581-8ed1-cf6812a908bb","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":114,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"d6d8fa16-07e6-4e20-9910-6446929ccc40","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":114,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"4262c946-87fa-4444-9903-e3dd4e3a6c1d","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":114,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"2f10708f-195c-4ac2-96b7-de7f19e5ee0b","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":114,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"a809e67b-a0c6-4e2c-9e69-a1401d8bddd5","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":114,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"6a03d821-e590-48b8-abef-ad55718ff528","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":114,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"54aa6559-eb74-4950-b563-6c0f99b5b85f","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":114,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"202c3451-b900-41bb-823a-53f92a1ac529","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":114,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"e3cc50cf-82db-40a4-99b2-6cc6d9b99070","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":114,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"ec3e8730-42ed-485e-be06-c97fcda81a5a","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":114,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"27246bbf-966b-485f-9734-b49e1a4ccd93","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal","page_number":114,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"0594ea32-d766-47f8-b16f-702edfb41528","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":114,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"3ba0fc8a-7e86-4abb-b977-9dd701f4560d","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":114,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"1f2407c2-c67c-470d-800f-c91f3ea10d9e","block_type":"box","text":"local intangible personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":114,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"71eee21a-11c0-414b-9d1b-bd4ff375b079","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":114,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"5d149128-18e4-4b7b-b02c-26a67049cc7f","block_type":"box","text":"the value of an investment in the Fund.","page_number":114,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"14af5c47-4ba5-4af7-aee9-12f230556d75","block_type":"box","text":"Temporary Defensive Measures.","page_number":114,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"ac77e4ed-7e7b-4cb0-b689-3df4a6b3c672","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":114,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"0780f764-7e2b-4b90-922b-ec8a5853878f","block_type":"box","text":"economic, political or other conditions, a Fund may depart from its principal investment strategies and may invest","page_number":114,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"4aeaaa7c-4d44-4ff3-b892-3635d92707a6","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other short term investments. Certain Funds","page_number":114,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"241a000d-ca36-44ca-9a6d-5f0a1a055d20","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":114,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"5e9035c8-6b4e-4575-b429-69a3b35a978c","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":114,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"170a7e44-e088-4d96-83ca-8530a4fa7659","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":114,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"61e9a27e-8e72-4634-ab43-53d3fd104493","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":114,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"23b82b58-2eb7-48b7-94b3-908008f1852a","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":114,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"a4db8a7f-54cb-4290-843e-2ae0df326446","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":114,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"5fd9578f-6d98-4e5e-9553-e328abed220f","block_type":"box","text":"its investment objective.","page_number":114,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"496d1954-c4eb-482a-b3ed-eacfb5ed48ec","block_type":"box","text":"U.S. Government Obligations.","page_number":114,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"5a028277-cbf9-49be-b632-785dd1bb6f56","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":114,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"fff329f6-3a82-4b55-abc4-9f5e609e211e","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of certain agencies and instrumentalities of the","page_number":114,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"af493093-8acc-4ec3-8e39-6e9b92a48fc2","block_type":"box","text":"U.S. Government are supported by the full faith and credit of the U.S. Treasury. Others are supported by the right of","page_number":114,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"04ba50a5-2df9-4e92-bdb9-cd2072ed1e24","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are supported only by the credit of the agency or","page_number":114,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"6a2e82dd-ede6-4dcd-9ff6-9753aed1faa3","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":114,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"002d0527-f7d8-43fb-9d46-015c561171bf","block_type":"box","text":"support to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Certain U.S. Treasury","page_number":114,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"7d5ce5df-01af-40ef-9daf-60fac78fb984","block_type":"box","text":"and agency securities may be held by trusts that issue participation certificates (such as Treasury income growth","page_number":114,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"f6d087dd-a89b-48f2-bd4d-fdb63038c624","block_type":"box","text":"receipts and certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":114,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"50fd3933-2f67-4521-9feb-84c454674aef","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":114,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"ef79e489-8a49-4bfc-acef-885e5822efcc","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":114,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"b49df054-5fbb-481f-9a60-c9c9c6799df6","block_type":"box","text":"and may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary","page_number":114,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"5b428693-f0ff-4642-b25c-198b4728e74b","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":114,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"b99280ce-d289-4aeb-9d4b-069a030f147f","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":114,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"b31fe39c-ee31-4f93-a2a9-d94133db3c35","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":114,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"28fb85e0-3378-44b9-b6da-ca7fa537a745","block_type":"box","text":"Administration, Export-Import Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":114,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"be901768-ee31-46d7-8c17-4f08b18d5c0f","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":114,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"682ac767-3ca0-4fc7-bbe8-e786d8168bc3","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":114,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"bb9e2d5a-3ac7-4e37-ae76-5428d87e029e","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":114,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"9940c059-5756-4b0e-8040-00229cbf6d9e","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":114,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"c3a802c2-78de-4977-ae75-3b1168857873","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":114,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"d3caf8a3-688d-4e3f-bc2e-09e5c47899f7","block_type":"box","text":"II-76","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d889781d-314e-44da-a2da-1352913d9f9a","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e0f96098-0b5c-49cb-96ea-16bfe26dd20f","block_type":"box","text":"U.S. Treasury Obligations.","page_number":115,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"96b0a0c3-10fe-4058-af60-ff262f388884","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":115,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"73db4427-912c-46fa-bed6-7fa9eb6532df","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees","page_number":115,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"0a9bf526-529d-4c62-8bd2-ce2acb2826ad","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":115,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"9a238f1a-c362-4501-9baf-0c5fabb5620c","block_type":"box","text":"that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to","page_number":115,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"0ad257eb-d294-48f7-b41e-53cca2be4ec7","block_type":"box","text":"do so.","page_number":115,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"72a05331-4062-4485-842c-c3ce1b751312","block_type":"box","text":"U.S. Treasury Rolls","page_number":115,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"766aeb4d-30b5-4e77-908a-0e2cd46c5bc5","block_type":"box","text":".","page_number":115,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"80635da3-70ea-4c31-a86a-0bfa0ee8340f","block_type":"box","text":"Certain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":115,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"815280a6-dd9a-4f2a-86d9-a58320583e57","block_type":"box","text":"sells a treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an","page_number":115,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"654324a6-bda6-424b-b5c9-73904fca48b5","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":115,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"aa041282-c511-4837-bb44-e7b77dab06d7","block_type":"box","text":"maturity of a Fund’s portfolio and increase the interest yield on the Fund’s portfolio by extending the average maturity","page_number":115,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"3e71a571-1d69-4248-b791-3417934189f6","block_type":"box","text":"of the portfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":115,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"1db4c94a-cd2b-468d-a298-f0cd64872f2e","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":115,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"a1458946-f9b6-4709-88a3-3238a7b4fc3c","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an opportunity loss if the counterparty","page_number":115,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"bc8eb606-824b-4426-8513-302e89956cb1","block_type":"box","text":"to the U.S. Treasury roll transaction failed to perform its obligations on the settlement date.","page_number":115,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"bc611537-bd18-4b02-8bf2-e304c5e078e2","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":115,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"4a314195-bbfc-4436-90cb-746a318ce854","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":115,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"ddd653c6-27cb-4a5f-8b11-b1b02aec965a","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":115,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"f72ce969-e1b5-4891-871f-0f147a6a9c50","block_type":"box","text":"Utility Industries.","page_number":115,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"889a3a3a-1220-4c38-aa78-cf9ae06e37a8","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":115,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"07a75b39-d208-43c4-8cb7-a52f9aaddf40","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":115,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"8754118c-6bae-4586-af7a-2fc7c3ad21d9","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":115,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"12d08fbe-ba19-4486-bc16-11f9917617ee","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":115,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"980ff274-4c89-4d59-a7f1-6f62e73db6cb","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":115,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"fc0945da-c8f3-4eca-a0d2-f533a7a3d846","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of certain types of fuel, occasional reduced","page_number":115,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"b02a1464-0e66-489a-bd26-d4c76dd667ca","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":115,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"aa0c2eb3-00fb-4bf5-89da-2404d50a3ce5","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":115,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"9f364140-3976-44a3-9267-bff032dc6697","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":115,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"469b8a7b-41d3-4320-a4eb-693144874aa9","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":115,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"b7d7a633-c88f-4ffc-8ade-3cc83737d88b","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":115,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"b95ad910-f9e8-4dab-accf-b0f78e73370a","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":115,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"293e437f-49f3-4bb1-b565-3ba129ae3cdc","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":115,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"a7f7f50d-25f0-4ef7-ac95-6b27c9eff2dc","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":115,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"ea7c5e0a-0b68-4b2a-87c3-e55198a52a83","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Certain of the issuers of securities","page_number":115,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"11ba8589-d116-4437-8834-fd484b5994e6","block_type":"box","text":"held in the Fund’s portfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":115,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"61446692-352e-4356-bf06-99b78782ef57","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":115,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"0b7c9405-9337-479b-b50c-fe46893659aa","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":115,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"de17a134-e82f-4c00-b75f-a554d61fe2df","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, particularly a hydro-based electric","page_number":115,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"a08b00e4-ae99-41a4-86db-0369d9689866","block_type":"box","text":"utility.","page_number":115,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"f6d709c8-e952-4d31-981e-ef9af8250cea","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":115,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"ba9bc5f2-2187-47ee-99eb-8262ca5c7f41","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":115,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"edc253f2-5f0a-4673-bd80-227124cc0e0e","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":115,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"f284b0b7-a47a-4355-90b0-0980efd4ed37","block_type":"box","text":"interest rates and therefore may lead to volatility in performance.","page_number":115,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"86ae5c72-5d75-493c-bd1e-02e834afc602","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":115,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"6f0e6543-1fd9-4ea1-ab55-d30418ccf70c","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":115,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"fd064715-08a9-4d8b-a932-3ac67acdd094","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":115,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"40dcb629-1ec7-403c-b8b4-f9144aa11db4","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":115,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"9479ca19-7108-4f55-a803-92d1b8911af9","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":115,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"5044a33a-52f4-428a-a400-9721668800a3","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":115,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"7ae273de-8cc8-43a9-a692-085d8f49d487","block_type":"box","text":"continue in the future.","page_number":115,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"52a4e105-4b33-48b4-82e1-94ac30e5e33e","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":115,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"239f8459-48c6-4f6f-ade3-038151469cf3","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":115,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"fb10b6d4-da37-4643-add8-4e3a85ef03a9","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":115,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"0ae8232c-2aee-4f25-b610-eb7a8fd0d5e8","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":115,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"44b3067f-9198-4ddf-88ca-89dfc17c8aec","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":115,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"90a3b53f-fdec-4178-91f7-9dbcbcca8852","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant part of their","page_number":115,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"1109e7a7-5103-4e31-b889-1b8b75c65c53","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in certain","page_number":115,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"e3579787-6434-4d22-9142-3d75a4a86e8d","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":115,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"2aabe3ee-e0a3-40aa-83fe-33b0d43036a6","block_type":"box","text":"II-77","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5116d19a-cd8c-4e2e-857f-d69cd279f251","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e84a405e-6457-4d96-9f39-77a796eb55ce","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":116,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"371eaf4b-c67d-4299-be60-d1cd92c9ad90","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":116,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"5a26b8b7-ad11-492d-b3ef-c52ee7a0446f","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":116,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"982c4f29-9f97-42d5-94d7-1d818e9504e9","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":116,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"8717cc72-f3c6-4957-863b-589045b4de1f","block_type":"box","text":"restrictions on the maximum level of profits of certain utility companies, but may also subject these companies to","page_number":116,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"f07a5f2f-183b-45f7-8cf8-30e45a6ea692","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment opportunities that may arise from","page_number":116,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"e7e82fc7-2d08-405a-9b85-a31740c7a87d","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":116,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"d5f78811-c8de-4540-9357-219e0fd26278","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":116,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"7f3a932b-69cc-4f9b-8c8b-976c1b413e7c","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":116,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"2f125576-2fd0-4294-93d3-161df3edb355","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":116,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"22ea5619-6678-4318-b478-f5895da60cc1","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":116,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"8d2d8b8e-dd57-412b-a6af-e3900ee64e7f","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":116,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"1ab0cd37-8789-451f-95c9-1ef8490ec45f","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":116,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"ba9cef92-885a-4a90-8024-c65b3e6d6ca5","block_type":"box","text":"ways different from regulation in the United States.","page_number":116,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"901b870e-1fc9-42dc-a221-fb3f465403d5","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":116,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"1d60e3b5-cb27-4352-a688-91fa664f1256","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate expansion of","page_number":116,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"8926f490-5db8-42e9-9fcc-43c0d65061c2","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":116,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"d2846101-d70a-4abe-afa6-6e0fd8cb2eb5","block_type":"box","text":"owned, thereby limiting current investment opportunities for a Fund, the Manager believes that, in order to attract","page_number":116,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"2cc391d7-3055-4347-9aa4-2dabdf228ca1","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":116,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"77eebf12-6bf7-4e72-9d12-1f31e54bbcb8","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":116,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"ae434c18-8114-4186-a573-bc38e4552372","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":116,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"d4206347-ef36-402a-bd6e-84e71a898c02","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign markets will","page_number":116,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"f22992f6-a471-41c3-a647-860acbd6825e","block_type":"box","text":"increase.","page_number":116,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"da9e8fe4-c210-4106-bb31-db1717c4e0f7","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":116,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"b2a2061d-49c4-49b9-b845-232dfc1b252c","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":116,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"67f07b10-7be9-4682-893f-88d8548ade94","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":116,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"e96e5dc7-7bc7-4736-88b2-0c720710de7d","block_type":"box","text":"Electric.","page_number":116,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"dc787da4-1330-4244-9705-c7a2b64df047","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":116,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"3cd2eb41-ba5c-4491-b650-5dd83f7fc1d9","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":116,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"0a658278-630b-497d-ab18-8e3e1e69969b","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":116,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"ed39c8ee-f29f-4c66-b9d6-de7d797d138d","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":116,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"44ce0dcd-8994-49df-a3c4-c39a05d1d87e","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":116,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"64c26705-a4a0-408e-b593-2de4f61c7734","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":116,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"1aab39d1-a97a-4128-86d7-11b19c849a69","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":116,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"e864391a-2746-4177-8057-bfb46363de76","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":116,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"510cff1d-b129-4bd9-b23c-44d346da0a34","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":116,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"fc1e5fd2-92da-44df-ad2d-a7e704cecc38","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":116,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"b40a9dc9-cba4-4505-bbe6-6146ae77a69b","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":116,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"8e216336-ddd5-4c6b-96e8-aa20264454ed","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in part with customers. In a period of rising interest","page_number":116,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"ed30a8f2-9dcc-4075-b119-e91029ade5d2","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":116,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"4dc8eeec-5eb4-44da-9f4b-c3156cfcf7a6","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":116,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"f9272c91-6fc2-4a61-a7c4-d2006b37b440","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":116,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"c4d049b2-c04d-4e0e-9a03-b201083e2b20","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":116,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"56181bcf-0faf-497f-8c47-b54c1c809a06","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":116,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"fdbcf132-eba3-45de-ab35-41b912633c19","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":116,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"210bf021-1c0f-4fda-a161-686de0fb342d","block_type":"box","text":"and for decommissioning such plants.","page_number":116,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"cb4c4e94-81da-4ee1-af87-c5057c3a8c61","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":116,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"4103df3f-fda2-41fa-9876-da1ad1d07ced","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":116,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"e88e2883-c005-40b9-a0c4-2700a3b14c80","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":116,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"802183c1-5674-42fa-81e2-cb0f32d09aad","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":116,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"ac8e98ba-0ee6-447b-a2fb-06ae7b034171","block_type":"box","text":"is expected to be the least competitive and the more regulated part of the business, may see higher ratings given the","page_number":116,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"673d9ef1-6469-4b85-8760-f1aa1dbe35e5","block_type":"box","text":"greater predictability of cash flow.","page_number":116,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"af68a8f8-49f8-40fb-a284-687519b919b2","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":116,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"dece7484-a85c-4eca-a65b-46b840ce1e7f","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":116,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"e8ee5a2f-2c58-4df4-b15e-1a92fc0a70a9","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":116,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"9b01f920-d3dd-411f-9030-daf031cc3db6","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":116,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"53f475c5-0c1a-4da5-a1e3-e35e01b821a9","block_type":"box","text":"II-78","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"abfd45e9-ca6c-4913-9745-9dd5cc7cd3ee","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"940fa8a5-5852-4aed-ad29-d27984595698","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":117,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"8d157134-b295-4a3b-8713-8c09d53196b0","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":117,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"da9fc43c-cbe0-475b-9cdb-f5fdd99484d9","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":117,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"9097a9d8-86da-4cb6-a253-ee02bc25dee7","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":117,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"af92c2ec-0843-4168-98e2-f1c4d8e5fbec","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":117,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"e771d0c9-188d-4fde-9e29-0e380cbfe51d","block_type":"box","text":"Telecommunications.","page_number":117,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"26d39660-3125-479b-a234-1df6cf182189","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":117,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"54d768aa-b361-4327-a61f-e52729f34c21","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":117,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"c5cc9f9b-8113-4db8-b554-a7b8109e447d","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":117,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"9cb63dba-9b7e-4ce9-bfda-c6ab5663b0b8","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":117,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"1b65a579-95d2-4737-bfa4-b623a51470d2","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":117,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"11f55af2-156b-4ab8-8f07-99596e3e3034","block_type":"box","text":"networks still comprise the greatest portion of this segment, but non-regulated activities such as wireless telephone","page_number":117,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"14ae10c1-adf5-4de5-b090-7e17335a6e87","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":117,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"c34cf99a-8a40-4320-b733-00a0fcf354a8","block_type":"box","text":"internet services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":117,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"b5b05fa6-74f2-4dfe-8062-ff9b32db2f32","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":117,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"37bb7d83-974a-41d6-ab54-0fbe3b74318a","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":117,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"bb91088c-1b8d-4491-beaf-fd8dd958abb3","block_type":"box","text":"regulated businesses provide significant investment opportunities with companies that may increase their earnings","page_number":117,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"15ba7104-9158-44a9-a010-94ecc0d2656e","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":117,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"4c20464b-f5ba-465c-b88a-a2ff670a9aac","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":117,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"53b5763c-99e7-434e-ae82-e3b5048e1d50","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":117,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"c2f682fd-61f5-498e-82ec-923924d65e04","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":117,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"b9a5681a-90a7-47a6-8f7a-f637b94d2972","block_type":"box","text":"residential, corporate and governmental customers.","page_number":117,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"fbf179bc-60ee-415f-bc8f-5b203947c599","block_type":"box","text":"Gas.","page_number":117,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"7cb73d33-c084-4890-8119-cde6731cf342","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":117,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"61c24b77-76fa-4031-a897-7bc3a4f9473e","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":117,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"3bea9f0a-98be-4810-a8ae-6dd344a90464","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":117,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"2faee33c-7b2d-4dad-b7b7-bd56a16d02f3","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":117,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"ccb58fb9-ccb8-4adb-8992-39cf6e73be9b","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":117,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"48e97d3b-a7c1-4f73-bf88-54e22d0a46f2","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":117,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"f6a5eaf2-b13f-4c5c-97e1-41583918d422","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":117,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"cf5c2e5a-14c2-4e6d-aa6b-2b76ccc44c5c","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":117,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"97033d90-8a8d-4291-8713-9a01a9fb33ed","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":117,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"861850c6-5732-4b94-913e-b12806c187e1","block_type":"box","text":"Water.","page_number":117,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"d5e0aa26-0792-4cd2-86bc-856a4cc741a5","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":117,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"a90eb908-717e-41dd-931b-1d7dc64a5539","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":117,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"b1139df8-09cc-4a7f-982a-3ac5b528fe25","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":117,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"b1571535-b87b-41ee-ba7b-562cb6dad3b5","block_type":"box","text":"opinion of the Manager, there may be opportunities for certain companies to acquire other water utility companies","page_number":117,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"1a74d8b2-2703-40ea-a4ab-644195cf2249","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment opportunities","page_number":117,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"0cd78a34-9946-434c-9287-1d08914748e0","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":117,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"43acf5c4-15d4-4888-a3af-425bf4e52205","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":117,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"5e16946b-e29b-4dfa-96a1-86cbad576b27","block_type":"box","text":"Utility Industries Generally.","page_number":117,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"d9961d57-a470-4563-99e4-32e4c6b62382","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":117,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"7c347691-d2ad-4845-a659-c1b58e29e1cf","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":117,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"5968a639-9957-4d7a-ad91-8eb583dd66d9","block_type":"box","text":"not develop in the future.","page_number":117,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"9ce3ac49-75fc-444b-860e-e60fdfe47974","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":117,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"ed1e1cdb-daf1-4ee1-a8b1-d99c119a23f5","block_type":"box","text":"A Fund may purchase or sell","page_number":117,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"6056d465-8419-4283-88c8-38b5cf007f53","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":117,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"264916fd-04f5-48d8-9891-bdfe0032853d","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":117,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"d3df97c0-56b8-486b-9536-47c58f22c266","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":117,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"5cfa546a-beb5-4ff2-895b-0a006f5430ac","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":117,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"6251ea96-78fe-49a1-8073-90d017ed0738","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":117,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"a612cdd7-b9ed-4e27-a514-96d0f5b074df","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":117,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"8f769de2-b980-4701-b9dd-d017d893f3f4","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterparty generally will be required to post collateral when entering into","page_number":117,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"34755031-28be-489c-8bf5-aaac1cbb3ad3","block_type":"box","text":"certain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":117,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"47950c23-0e94-48e5-9a8b-ceb3cdf9a5e6","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":117,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"3aeed31a-053e-471e-8247-e72663a655d1","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterparty credit risk between trade and settlement, but","page_number":117,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"f86f545d-f791-485e-b2a0-d021769ab811","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":117,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"afdee46c-e02e-4e83-ab03-6db689bcd4fd","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":117,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"687cc66a-f359-4e43-9f2c-d2d5b1e3adca","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":117,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"9fb87f4c-2f24-4a0e-aa66-e0012d7a5fa3","block_type":"box","text":"II-79","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5d0931cd-15b3-476d-a17d-72df76cd7d48","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a3e3c1c9-9111-4612-b9f6-85921af199cb","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":118,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"2227824a-73a7-4b4f-9513-7a828ea17e0d","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":118,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"cb3d2cab-01b8-4456-823b-1b37c804b100","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":118,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"82811fe9-868b-4700-89a3-2077b8a746ee","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":118,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"7badb393-277e-4fae-836a-bdb0c325ca82","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":118,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"a52cb809-3e88-4475-97f3-90adce689eb3","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":118,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"89ebb9b0-004a-4936-a0e9-60624039b5d6","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other party to","page_number":118,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"3ba50a5d-93cf-4898-bb42-d02b1ce1b472","block_type":"box","text":"consummate the trade. Failure of such party to do so may result in the Fund’s incurring a loss or missing an","page_number":118,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"2333efbc-b388-439c-ae27-0c7c77b9d1d2","block_type":"box","text":"opportunity to obtain a price considered to be advantageous.","page_number":118,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"30a28a3a-f423-411c-99bf-c2f4bff95e12","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":118,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"871a681f-148d-4b90-b53d-0237c1949df5","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund starting on the","page_number":118,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"b313c169-8690-4b93-9899-9062ce81d852","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":118,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"af1c470e-a337-4493-801f-b9b1c88c4ace","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":118,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"068fc55f-0e45-4d21-b78a-da6adefd5f1d","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":118,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"cabb9b67-60f0-4c98-85e8-4fba67222e3b","block_type":"box","text":"securities (","page_number":118,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"976e5b87-ea78-472a-bb9b-982657230669","block_type":"box","text":"e.g.","page_number":118,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"750cbcd9-9133-4dd8-83b7-7e7e4ae0611d","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":118,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"7b6b32af-949e-47bb-bf63-3f86e5beaa54","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":118,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"a69a6c5f-5676-4eb2-826c-d31f9c8fc9a8","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":118,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"e927b1d0-0486-4389-bb6d-dc94b7e9f8a4","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":118,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"30b28263-ef62-4632-94a0-3e6156b2c9ee","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":118,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"d0772e49-8df8-4339-91c4-f5ac8f3d903e","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":118,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"6a63c963-020c-441c-ad5c-acfe3fd72e3e","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":118,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"312b545d-6b2e-4aa6-8af2-be4e58931be6","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":118,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"cdac15c2-81df-4d97-a89b-4350b7263bdd","block_type":"box","text":"their affiliates to include in certain financial contracts, including many agreements with respect to when-issued, TBA","page_number":118,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"0833432f-6228-4ad7-8940-4dd0938e1885","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterparties, such as a Fund, to","page_number":118,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"cfc457cf-9fd6-4e5c-848e-046e404a8af9","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":118,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"3baa426e-dc59-44ce-97cd-0494a8d465bd","block_type":"box","text":"support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or insolvency","page_number":118,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"b0c0887c-b04a-4c17-99cd-271fe136feb8","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":118,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"9ac192a9-efe7-4d32-8f17-dfc78dd0103b","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":118,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"34cd02bc-07f0-45d2-b294-8b6eb52453b8","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":118,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"798d1068-a965-43fa-bbad-065de2e42970","block_type":"box","text":"Yields and Ratings.","page_number":118,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"51e33f3d-e8cc-4ef9-8b77-c58aadf9e3ac","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including general","page_number":118,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"31cb59ec-452a-481b-9289-1060c361c806","block_type":"box","text":"market conditions, conditions in the particular market for the obligation, the financial condition of the issuer, the size","page_number":118,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"bc7445db-5cf9-4da6-94f7-80d5c90a132d","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":118,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"169f9333-2349-4485-9db2-3787b027b6f4","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they undertake to rate. Ratings, however, are","page_number":118,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"29c8eee8-aad8-4ac2-bc31-ee28dd8de04b","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":118,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"85902540-4b1a-476d-a3e6-b81a59c60c34","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":118,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"4bb2470e-0fff-47a3-bedd-23f065085937","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":118,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"190b91af-6cd3-4765-abc2-e58cbb23a52c","block_type":"box","text":"continue to hold the security.","page_number":118,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"9e855b47-2d31-45e0-95f7-b1f6a38848ac","block_type":"box","text":"Zero Coupon Securities.","page_number":118,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"039e3781-5471-448c-876b-5238f179beac","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":118,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"a71aa764-5e9b-4449-bcf0-096c2c6f29c8","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":118,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"edc60033-6d21-4f55-9710-267ca5d296c0","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":118,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"a265c3b0-2b49-4f14-949c-36d03b6e9b13","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":118,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"6ceb3d44-bccd-43f1-ae62-03fb8fd87af5","block_type":"box","text":"security.","page_number":118,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"daace054-1dab-46fa-b37f-3a35ca0c4173","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":118,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"c3cf2fa7-fadd-43b3-aca9-dc1994a03b84","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":118,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"6c9b8f92-2e26-4f5b-a47e-9b1b238a75ab","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":118,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"089ee26e-e8d9-4a67-9245-ad587c629e9a","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":118,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"8aeaa52f-7ed4-4b86-8a6d-3c3707bf2aa1","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":118,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"63d842c1-5844-4cc7-be79-ebbd5a4f1d07","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":118,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"5b427906-e3ca-4328-8938-3deedf348c3b","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":118,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"527a9dbf-d010-45c3-ab2b-91c5d4be921c","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":118,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"c2744d5d-89ee-43d0-a7c0-f1da6d72c16f","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These investments","page_number":118,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"da00ec62-84cd-4c94-a1ef-4456373723c7","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":118,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"2110c1bb-a489-4f99-8cdd-b87546b12f20","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":118,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"a62bc93c-bd81-4b4b-8f89-04d5c0f4e4c4","block_type":"box","text":"II-80","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"62fa4d5a-a3a6-421a-99af-4b902a2b90e0","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ae3475c9-73c1-478a-bf66-9842597aab0f","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":119,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"601e96a2-3dc5-4163-8aa3-6fd3503a5c7b","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":119,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"a0b3d367-37fc-429b-8fb0-f16f44b9283a","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":119,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"e9945e60-a153-4bf9-84b7-4bb0baaf799e","block_type":"box","text":"intervals.","page_number":119,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"b2701089-91db-46b9-a880-1f13a9d2b1b8","block_type":"box","text":"Further, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":119,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"41a5a3d9-e57a-40b0-b281-86f672fe1486","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":119,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"72e6afce-c829-4fe4-a952-f360b8a88526","block_type":"box","text":"portfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":119,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"e7bdaaa4-a542-4e82-ad62-73beef1f8a58","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":119,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"1a06c736-e861-4dad-9f56-9793c0ee8336","block_type":"box","text":"exposure to zero coupon securities.","page_number":119,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"42cdc4df-3dc9-4052-888e-3e3c426197f2","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero coupon","page_number":119,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"b79f638e-7e4b-493c-a621-41358e4aa401","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":119,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"93680a9e-5ccf-4312-9bbf-ef35333e2fde","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":119,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"2fcfb62d-98ed-432a-8b2a-584a92dba726","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s portfolio.","page_number":119,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"35a30c9f-ba32-4559-a115-7b287f0e3527","block_type":"box","text":"Suitability. (All Funds)","page_number":119,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"53f3f4dc-7383-4016-a477-7866226e8ffe","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":119,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"fd9340ca-6ef6-4946-ab07-71fb6841d2f9","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":119,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"c4e31103-360a-4305-aafe-7fccf16e73fd","block_type":"box","text":"investment program. The suitability for any particular investor of a purchase of shares in a Fund will depend upon,","page_number":119,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"072e6424-6f0a-452e-8e73-c706733ec817","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":119,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"cec00d9c-da6e-4a93-9df7-68851ac3ecf5","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":119,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"131fd71b-3f50-4eea-b2b1-c83957b647df","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":119,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"79671a95-7493-481d-bcfc-36ce645fcbe9","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":119,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"8961c06f-a663-4679-af36-46fa292e2d69","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":119,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"8c263c1c-520b-403f-8b27-672e943c1cab","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":119,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"e0eed5e1-a612-46a8-ba00-596e48c4db9e","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":119,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"bde74c0b-29fd-4ca8-a859-fb60cdb50b00","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":119,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"f4e7395a-7f32-4ebe-aa08-ac26c9d95504","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quarter of the taxable year, (i) at least","page_number":119,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"7749c74f-6464-4bcb-b6c2-a644bc14fc4a","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":119,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"b0e035ba-ce4f-43d0-9c61-36288c40d9e7","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":119,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"e324d4b6-7aca-430a-bf64-ce99bc564934","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":119,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"9bee3144-46dd-4031-9c38-e8aa154a85cf","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":119,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"ae527ebf-a9f4-4216-9014-0d7d91d6e4fa","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":119,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"cd18c253-65be-4cad-8778-d928009ef314","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":119,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"eb006648-5d57-4e68-acb0-47542872078d","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships","page_number":119,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"ea9cf808-0101-4dd0-9eb6-aae04a5bc133","block_type":"box","text":"(","page_number":119,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"86873b67-1f4c-464a-9832-883e8dc43d0b","block_type":"box","text":"i.e.","page_number":119,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"011ebd61-bf00-44d4-bdf9-4e0eff49249c","block_type":"box","text":", partnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":119,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"80ea1f5f-e954-41e1-959d-190a52573ba2","block_type":"box","text":"partnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":119,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"00bd459d-242f-4c92-b444-c346af9b4f2a","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":119,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"1a08b315-cf89-458f-b3f6-8ae5a94879a7","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":119,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"058703e9-f1c2-43cb-ac53-5986b6a47fe8","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":119,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"a784c16f-d041-4bb7-b0e9-74b8e473231e","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":119,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"ac677887-36fd-4748-a603-37550b860ccf","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":119,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"b9b58f5d-5157-4d9a-8b9a-98137ffa8b06","block_type":"box","text":"regarded as the sole issuer.","page_number":119,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"6c4df56d-aa8f-4378-8830-546c941425b4","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":119,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"13ab285f-d13a-463b-854d-82efeb21a672","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":119,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"5241afc9-7136-434f-a855-5ae0ff9b4ab1","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":119,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"b5f399da-b8ba-41ed-afd2-3ce360a25eca","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":119,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"a75a4743-8d05-4d36-b892-97d60a4cda09","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":119,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"1ff93fd8-d5d3-4060-b982-4179dc748565","block_type":"box","text":"75% of its total assets.","page_number":119,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"249450d5-fb82-4f71-bb34-a1a6d8e609d9","block_type":"box","text":"II-81","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fe6ef954-2e7e-4f97-b730-e4ad0474332f","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c1603dbd-2e92-43d4-ab56-34f3ccab9eef","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":120,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"77e69435-60a2-43a0-b21a-e4a6f1d52081","block_type":"box","text":"Directors and Officers","page_number":120,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"ba7e33ac-5607-40b6-898d-75ad5cb9584c","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":120,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"81caec8c-1c97-4f70-b353-550076d44bf0","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":120,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"7c3db34d-c706-4c8f-a904-e1893b4b53f8","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Part I of each Fund’s SAI for biographical and","page_number":120,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"137e5d72-1c0c-4324-9496-ffd05409a37b","block_type":"box","text":"certain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":120,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"79945d38-fd56-4589-a07c-268d26785bb6","block_type":"box","text":"Management Arrangements","page_number":120,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"01530207-dae5-4fdd-99e3-3a8a9c88fca7","block_type":"box","text":"Management Services.","page_number":120,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"bacd0022-3aca-4e29-a067-6803b055349f","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":120,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"8fb10b45-c098-40ab-aa30-6107e69d0f90","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":120,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"ad5c2a11-6600-4568-b155-d4c5c9d4fbc2","block_type":"box","text":"portfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":120,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"232d23a2-d70c-4e0e-9ea4-85de5142e38b","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a particular security rests with the Manager. 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Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":120,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"8e839701-999a-4e29-823a-df71a9c541e8","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":120,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"bc6d1a58-88ab-4c78-97b2-c50e0b0bf441","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":120,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"3f0cba78-9f89-4867-a18f-b742f1993b8a","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":120,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"b9b4e5d7-3804-4aa5-8a80-bdd9431601f5","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":120,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"7b6be81a-4ba6-4658-8af7-43c1ba190b75","block_type":"box","text":"Duration and Termination.","page_number":120,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"b4cde946-7fd3-4995-97b0-04098b34d6f4","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":120,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"88ce5c99-62f9-4db2-b24b-28c0e4af348a","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":120,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"8c9106c9-f57d-4d7e-95cb-5ac59b5f4a2b","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":120,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"74ae07e5-8cd2-46cd-8c74-32c97f0ad404","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not parties to such agreement or interested persons (as defined","page_number":120,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"35d459d4-704e-4d3e-bff0-25091dc1514a","block_type":"box","text":"II-82","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5a95d442-9436-42a6-8dfd-50555448d2d9","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"08d3c84d-3d4a-44f2-b8d1-d9f81c7292fa","block_type":"box","text":"in the Investment Company Act) of any such party. 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Such contract is not assignable","page_number":121,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"7ed949d6-3767-4d73-b963-950a6d0b4731","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either party thereto or by the vote of the","page_number":121,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"3427d29a-07cb-4ff7-972d-0dc9a079919a","block_type":"box","text":"shareholders of the Fund.","page_number":121,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"097ff965-560c-4b9d-ba89-0c5340378437","block_type":"box","text":"Transfer Agency Services.","page_number":121,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"44bd65c6-ca95-4987-a71e-e519aae8a87e","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":121,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"305a513b-4363-4fff-b3b2-ad0bcc1f02f1","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":121,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"ca2e7d16-a27d-4f8e-ad7c-efc3f2ce0ae6","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":121,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"13fdddd0-7f9c-471e-a1a7-3fe02cc17993","block_type":"box","text":"with the Funds. 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Please see the inside back cover page of your Fund’s Prospectus and Part I","page_number":121,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"253bfbef-7567-4d54-8a33-1cc4a2774e3e","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":121,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"8869a9a7-1e01-4474-ba47-89b57897a4a4","block_type":"box","text":"Custodian Services.","page_number":121,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"e3050180-8faa-4493-8f27-78d3157a43d2","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":121,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"660e99c1-83c8-4962-8eeb-f330df016c9d","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":121,"box":{"x":70,"y":695,"width":820,"height":11}},{"id":"0768e4f5-9f1b-41c9-b792-d1de2725f055","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":121,"box":{"x":70,"y":710,"width":814,"height":11}},{"id":"887aa74c-86d0-447d-a7c7-d3bde3ab2dbd","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":121,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"bf06302b-3db7-481e-b566-b4bffb288e12","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with certain foreign","page_number":121,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"9c7e9feb-129c-4275-b818-c1cf81e71a7a","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":121,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"54666575-0c9e-4180-a973-f2aa84cd0da7","block_type":"box","text":"certain assets.","page_number":121,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"56b6f374-5911-4907-a633-8d541be6e569","block_type":"box","text":"For certain Feeder Funds, the Custodian also acts as the custodian of the Master Portfolio’s assets.","page_number":121,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"9b675fe9-5414-41ca-a2eb-05141ef26ed3","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. 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With respect to such Funds, the custodian fees, including the amount","page_number":121,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"0bdd5b9b-0958-401d-9e29-0554027bf668","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":121,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"b4300b66-479a-4b95-b6f1-79606ceec397","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":121,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"4c6912a1-2b03-4988-aef3-6d817b3c1499","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":121,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"8bf2fd2e-43c4-42b2-a768-0a5cd1ea379d","block_type":"box","text":"Fund.","page_number":121,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"2909cbb9-04a5-47f8-a33a-c9322fbf0476","block_type":"box","text":"II-83","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b497d8c8-6105-403c-a123-bac9bf8df930","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":121,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ae04b094-adc6-402e-b874-906da900b21d","block_type":"box","text":"Accounting Services.","page_number":122,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"37dad5b2-a7a5-4a89-9412-3d661e9eceac","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":122,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"f48ddab9-1088-4de5-ac1a-4b0cb078eda3","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides certain accounting and administrative services to the Fund. Each","page_number":122,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"197cde6c-b0f9-4ce5-9cc2-4122c0fb9f3c","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":122,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"60bbc5e9-a228-49c6-bf3c-f5a7fc7c6a91","block_type":"box","text":"Master LLCs.","page_number":122,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"7ae47acb-b83f-42cd-9c00-ea14af82454c","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":122,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"7228087c-8523-4f57-89c7-569a793c2019","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Part I of each Fund’s SAI for information on the","page_number":122,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"0a017c46-7009-442c-85b3-34d51f6e4b52","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":122,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"4a594da1-86c6-4d89-bdc4-e05ead5e4a35","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":122,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"9bd80bc7-00af-461b-a91d-87741ed899bc","block_type":"box","text":"Distribution Expenses.","page_number":122,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"d8452b65-82e8-45be-a759-5a94b01452fc","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":122,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"be69cf1b-d5d6-40d1-94f1-619aaefa063b","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). The Distribution","page_number":122,"box":{"x":68,"y":196,"width":807,"height":11}},{"id":"c774115e-de98-4b02-8eda-0b6da7fe417b","block_type":"box","text":"Agreements obligate the Distributor to pay certain expenses in connection with the offering of each class of shares of","page_number":122,"box":{"x":68,"y":211,"width":842,"height":11}},{"id":"4ee8fe42-0b98-45df-ac25-dbd10461d138","block_type":"box","text":"the Funds. After the prospectuses, statements of additional information and periodic reports have been prepared,","page_number":122,"box":{"x":68,"y":226,"width":813,"height":11}},{"id":"850a01b2-ec8d-41e1-be37-6e72b6de79ae","block_type":"box","text":"set in type and mailed to shareholders, the Distributor pays for the printing and distribution of these documents used","page_number":122,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"11bc65e4-7b2c-45e2-a599-2908c86a319f","block_type":"box","text":"in connection with the offering to dealers and investors. The Distributor also pays for other supplementary sales","page_number":122,"box":{"x":70,"y":256,"width":799,"height":12}},{"id":"0b6d1642-e799-407a-a656-81aab664eb31","block_type":"box","text":"literature and advertising costs. Each Distribution Agreement is subject to the same renewal requirements and","page_number":122,"box":{"x":70,"y":272,"width":788,"height":11}},{"id":"ade61c50-bfc1-455a-aa0c-c01a6d5b1bc5","block_type":"box","text":"termination provisions as the Management Agreement described above.","page_number":122,"box":{"x":68,"y":287,"width":513,"height":11}},{"id":"2ab39e2e-195a-48c1-b7ee-8330cc19c205","block_type":"box","text":"Code of Ethics","page_number":122,"box":{"x":69,"y":317,"width":105,"height":9}},{"id":"59245b9c-0e20-4b5c-aa53-deebccd555c1","block_type":"box","text":"Each Fund, the Manager, each Sub-Adviser and the Distributor has adopted a Code of Ethics pursuant to Rule","page_number":122,"box":{"x":102,"y":339,"width":780,"height":12}},{"id":"f94c2317-5d55-481c-943a-ac9b82b9be32","block_type":"box","text":"17j-1 under the Investment Company Act. The Code of Ethics establishes procedures for personal investing and","page_number":122,"box":{"x":70,"y":355,"width":794,"height":11}},{"id":"579cc527-e3e0-4e24-8b3a-57cab1656767","block_type":"box","text":"restricts certain transactions. Employees subject to the Code of Ethics may invest in securities for their personal","page_number":122,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"d9c90b08-cb02-4ad1-9cb9-590564ff8d33","block_type":"box","text":"investment accounts, including securities that may be purchased or held by a Fund.","page_number":122,"box":{"x":70,"y":385,"width":593,"height":11}},{"id":"aff5196d-ffb7-4647-b440-457238ede592","block_type":"box","text":"SELECTIVE DISCLOSURE OF PORTFOLIO HOLDINGS","page_number":122,"box":{"x":282,"y":414,"width":413,"height":10}},{"id":"ed6e3991-b9d5-4e45-9388-1c10d17b87e9","block_type":"box","text":"The Board of Directors of each Fund and the Board of Directors of the Manager have each approved Portfolio","page_number":122,"box":{"x":101,"y":437,"width":777,"height":11}},{"id":"70ad7a5e-70a6-4f89-85d0-7ec52c9928f2","block_type":"box","text":"Holdings and Related Information Distribution Guidelines (the “Policy”) regarding the disclosure of each Fund’s","page_number":122,"box":{"x":70,"y":452,"width":788,"height":11}},{"id":"9c99c78b-fa6a-4781-91b9-95d6bd2a36f0","block_type":"box","text":"portfolio securities, as applicable, and other portfolio information. 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BlackRock may have a potentially conflicting division of","page_number":128,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"fea4515f-9272-458b-9b4d-385d9827f7eb","block_type":"box","text":"loyalties and responsibilities to the parties in such transactions.","page_number":128,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"b9629cdb-b284-4051-8f31-77fe3aaa3f05","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":128,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"53d1aaf9-0a1d-4358-bc86-64308fdd51b2","block_type":"box","text":"and those activities may have an adverse effect on the Fund. 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It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":128,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"7eabe13a-f073-4230-b7f6-52969938149a","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":128,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"433ebe49-820a-49c0-9e82-6bcaed31df08","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":128,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"e046ba31-1eca-4140-bfc6-2f95863f9149","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":128,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"1465ed1e-c0f6-414d-8322-a38f6bac6cad","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":128,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"3ab2f6c6-f532-48c1-9c5e-937fe11aad31","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":128,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"84c3b0b4-87ec-4809-8d15-6b8869842d8a","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":128,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"3aa016c5-a703-4207-9a3b-d77fb14722fc","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend certain","page_number":128,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"63acb869-f700-4098-9ec9-3ffa92c386db","block_type":"box","text":"II-90","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"146b2d97-1899-41b9-a506-bca0e722abc6","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":128,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"295a70f5-7df1-4ff7-9d87-4faf691c6a3b","block_type":"box","text":"types of transactions in certain securities or instruments with respect to which BlackRock is performing services or","page_number":129,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"a100706b-a3bf-4260-9ecc-c4f8b328f404","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":129,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"f8f8547c-4580-45f1-ae63-03a478f308a1","block_type":"box","text":"accounts and accounts under its management may limit the investment opportunities for a Fund in certain emerging","page_number":129,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"f70855b9-dcd1-41a8-8de5-fc9d87a9b433","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":129,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"7852c529-9b52-44d7-a625-b541424eaf3c","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":129,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"bc12107e-b464-4898-8ef7-fb393987ca21","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to certain fundamental analysis and","page_number":129,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"06a430a4-7adc-4eef-b772-1054705f3739","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":129,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"ba2b5441-10ee-450f-a261-9e416cf3f24b","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":129,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"1fe37bc5-bb36-4eea-9ced-3040dfae3643","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":129,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"d5e25233-1bcc-45e7-9706-5751cbf840a6","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":129,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"572065e8-78b1-420b-82ab-5341a3e9a093","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":129,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"06030ff3-f73e-411a-9481-0ff664a6d602","block_type":"box","text":"proprietary activities or portfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":129,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"7aa872db-9e1b-4436-84fe-abcf89538ad3","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":129,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"b10b5680-8157-4408-a558-060f34ac0039","block_type":"box","text":"managing a Fund.","page_number":129,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"45ed52d5-5d7f-4104-a326-5c4c31fc6244","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":129,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"6a51f98a-038d-4ba7-a854-4d328d6bb6ee","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":129,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"c3577ae4-fa34-4f9b-96aa-7286d8751c91","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":129,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"a5285324-f5bf-4f11-ba7f-7e7de0a2f3a0","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":129,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"df6fbff8-61a0-46c0-9175-efb80ef1be6a","block_type":"box","text":"portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":129,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"b6aab5d8-338d-4927-8286-196b6a182773","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals or","page_number":129,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"161aa129-d91f-45aa-9ac6-5d2a5f90b7e5","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":129,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"755f5c4f-bbe1-4eec-a8ab-03995f49eab9","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":129,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"14dc75d2-17b9-4a7a-8250-bb05d599b252","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":129,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"ad1e89a1-10bf-4192-894b-7b86331b1f24","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":129,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"ab9eb154-694b-48a4-bd6a-a7ba8b8a3d6d","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":129,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"60066a45-b288-4b78-92f2-3ee8df67f746","block_type":"box","text":"as the counterparty, principal or issuer. In such cases, such party’s interests in the transaction will be adverse to the","page_number":129,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"3d878d08-39b1-4f4a-bd2f-5b2b54ca9fa8","block_type":"box","text":"interests of the Fund, and such party may have no incentive to assure that the Fund obtains the best possible prices","page_number":129,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"6b2b1e44-1e69-4c6a-9b92-88908d32a2ae","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":129,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"f8f64aa2-3830-4797-ab0d-d693f6b4cb0d","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":129,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"78b99835-4e47-4d65-bb55-65c2a06bfbe9","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":129,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"467ea3e8-d37b-4156-8965-79836b3af154","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the performance of the Fund.","page_number":129,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"a8ed42bb-f662-41e7-ba7d-cc99fc8ad991","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the performance of","page_number":129,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"de109ef3-2d61-483d-98b0-af33186a58f4","block_type":"box","text":"certain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":129,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"b00a74e1-11e3-462e-8a95-b7d29a37262f","block_type":"box","text":"underlying fixed-income indexes used by certain iShares ETFs, related to derivative fixed-income products that are","page_number":129,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"4be58511-07d7-4f0d-ade8-34f36e9d3db8","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":129,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"657a8aec-a20f-49af-9852-3de859d0fe8c","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":129,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"e5de141e-3203-4c58-bbec-7db6c76c94ab","block_type":"box","text":"under management for BlackRock.","page_number":129,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"69d4afba-f897-41a6-aa02-5ce1f7846475","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":129,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"607479ab-e2d3-4c03-a317-e480cf1aa5d4","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":129,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"a3fedf3d-82a2-4598-8eea-31d8eed75f45","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":129,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"ddd8716c-ed33-41e5-af0f-715d00aee1a8","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":129,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"3d78636d-2638-47a7-9237-2b90d6031cab","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":129,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"656dc53e-8ff9-4659-894e-cc76f09ff62f","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":129,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"98328aef-ebe8-486a-b0be-e9f808979d06","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":129,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"e6dec942-6c06-498b-be46-49241f883b78","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":129,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"1584b15f-2f55-4319-969a-407e9ad48881","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":129,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"836448e2-3035-44d2-832c-99a70ad0adc1","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":129,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"3113d92d-6979-4749-8e09-eb2bcf4a9682","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":129,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"4882f68e-a765-4daa-9116-7d1d3ba714e3","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":129,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"eefe8b68-1fa6-4e78-926c-9f5b07800f72","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":129,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"9c50d2f6-d7cf-4e97-b735-1e21f48b37ed","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":129,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"b3ba035c-bb44-4584-bd4f-842a2a5f166e","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":129,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"16616e21-9cbe-4565-938b-4c5d96158b1e","block_type":"box","text":"or in other commercial capacities. No accounting to the Funds or their shareholders will be required, and no fees or","page_number":129,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"45819405-16a7-491c-996f-38ac6967e73e","block_type":"box","text":"II-91","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5480ebf9-cc52-43fc-9d12-f163744efade","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":129,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d8c32505-395f-46fc-b787-c8d644b0a9e2","block_type":"box","text":"other compensation payable by the Funds or their shareholders will be reduced by reason of receipt by BlackRock of","page_number":130,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"e12cc47a-10a9-4c67-a536-9d9a19fc1323","block_type":"box","text":"any such fees or other amounts.","page_number":130,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"81466db3-4292-4070-b28f-971e6cac7991","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":130,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"5214a9f0-790a-466a-ab78-05cf9b55c1b0","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":130,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"9d44dd84-653d-4ba0-9ef6-f4adccdfa703","block_type":"box","text":"A Fund will be required to establish business relationships with its counterparties based on the Fund’s own","page_number":130,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"97973f98-8277-49b6-bbf9-8f9aea97b2b7","block_type":"box","text":"credit standing. BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":130,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"f3dc7fd1-7088-47bf-9873-0d875d49263d","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterparties will rely on the credit of","page_number":130,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"43259922-2ad9-449a-b1d5-4fd31b760cfe","block_type":"box","text":"BlackRock in evaluating the Fund’s creditworthiness.","page_number":130,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"9356b217-7595-43b2-be74-13d387a58653","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":130,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"6f0d34fe-2022-46ef-8e2d-4ba6bc237b4c","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":130,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"c444c59f-e27b-49c6-b22c-ac218e17e843","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":130,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"05df0b90-63cb-41af-923f-723d11aa1313","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":130,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"09945a93-07a6-4fe6-8d11-06e2e9fcc8e5","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":130,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"17926864-d063-495a-82d7-6ad8b8fa5c19","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend particular","page_number":130,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"0ef2cdb2-a977-408d-a842-8a53228e025a","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":130,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"058aa98b-2733-4daf-921c-a6c8065e9304","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":130,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"82a1f4a4-a86f-4cef-8d81-58a40bb37307","block_type":"box","text":"BlackRock. As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":130,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"c78f3dcd-b8fa-4577-ac45-225e13a8da7a","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":130,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"15d78367-4681-48a9-be07-13c1f04b07d4","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients and/or","page_number":130,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"559daf9d-9215-4f60-85ac-85c09f9cd9b9","block_type":"box","text":"funds against a shortfall in collateral in the event of borrower default. 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BlackRock oversees the risk model that calculates projected collateral shortfall values using","page_number":130,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"bd066e24-87fa-4f63-b775-3ad4b3451949","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":130,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"532e8520-b62e-446e-b07e-e7f176d280bb","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":130,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"ed08c86a-c172-4851-bb45-fcf7b36a143c","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":130,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"b853ca1f-d89c-4021-858d-94d34824dd08","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":130,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"7289d2e9-0f65-4d1c-9309-f6920594c8b0","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending opportunities for certain loans (including by","page_number":130,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"04ea0866-5657-4f10-a930-9240471e2d7c","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":130,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"00dd36be-5273-42e8-bc0e-1a5ce7be6948","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":130,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"0c77b147-74fc-4b39-96bf-5763674dffca","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":130,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"bacec731-bf60-4bc9-9eb8-9b66ec89efc0","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":130,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"7b865df3-aeb7-4edc-a565-a968a36dfcae","block_type":"box","text":"eliminating the volume of lending opportunities for certain types of loans, loans in particular markets, loans of","page_number":130,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"711360ec-6dc5-430b-8970-6360fb67a13a","block_type":"box","text":"particular securities or types of securities, or for loans overall. In addition, some borrowers may prefer certain","page_number":130,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"9d06803a-fdfa-4980-ae9c-90d22f8c307c","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":130,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"e44321ad-abee-4220-84d8-e86e1d68de63","block_type":"box","text":"regulation.","page_number":130,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"30188f5d-ae96-4a32-8181-282079baebe6","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":130,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"aef4f9b6-55fd-4e48-af4b-4b844ee588f0","block_type":"box","text":"order to allocate a loan to a portfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":130,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"917d9e02-6661-4a8f-938e-08c6b1dca8bf","block_type":"box","text":"various program limits (","page_number":130,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"6ca0a18a-de1a-4ba5-9cc9-ebbc6404c047","block_type":"box","text":"i.e.","page_number":130,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"89836bb1-2970-4d14-a731-6a4751b04b72","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending portfolio must","page_number":130,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"3791b8df-4650-4a43-8cbd-ad9d6418bd7d","block_type":"box","text":"hold the asset at the time a loan opportunity arrives; and (iii) the lending portfolio must also have enough inventory,","page_number":130,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"5010a593-f56f-4e43-8a7d-fc433dafffcc","block_type":"box","text":"either on its own or when aggregated with other portfolios into one single market delivery, to satisfy the loan request.","page_number":130,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"cee5e377-12a2-4d8d-802b-4c09c593e818","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending opportunities for all portfolios, independent of whether","page_number":130,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"23a50130-d97b-482e-9a4d-46f6124281c7","block_type":"box","text":"BlackRock indemnifies the portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes.","page_number":130,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"e1b3ca9c-977a-4149-8b4a-429b550acd33","block_type":"box","text":"Specifically, short and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":130,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"5f94ed87-b8d7-443c-9490-ba2274088f9d","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":130,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"75ed386d-61c2-47cd-a997-7d6366a3ea6f","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":130,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"9149b349-32f6-4820-b297-727d31f3cc79","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":130,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"32d422e2-d75f-4ae7-ae2c-93249703fa15","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if portfolio","page_number":130,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"eea2c385-7cdf-4070-9dc1-6a8029d16898","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":130,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"65a212ae-9126-47c1-a3fc-356c0185e612","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":130,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"b707a267-6d53-45e6-8bb0-95dd500b0dd5","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":130,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"ecaaaa7b-6743-495a-8fba-d8daa94ca804","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":130,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"ace453f9-e350-42ec-9560-00ace3ce7388","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":130,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"fe5fdf66-98ee-49db-9eea-e34d2fa93a6c","block_type":"box","text":"II-92","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"814082e0-0d0e-4dbe-a250-cd2bc8ae2561","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":130,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"30e23c99-3cc4-4901-b577-dcde7fc47732","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under certain circumstances, the Funds will not be charged","page_number":131,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"30853c98-6b5f-44f5-9cd6-28c7fe7d9f09","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":131,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"c68c8d4e-60bc-4539-8aa2-2d2d2ce1c290","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage—Transactions in Portfolio","page_number":131,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"6dfb54f4-5ccd-4507-acd9-f009a693ed0c","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":131,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"c1d79919-4a88-43dd-8ffc-331d54faaa59","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":131,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"0844e9f6-ff3d-4a45-aa44-df78c4b4da5e","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":131,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"0b9bcd0c-1bd0-4af9-8442-5e86e7d5f273","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":131,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"ac1e386e-2ae6-4a5f-833e-c2c0940e1030","block_type":"box","text":"sub-adviser to certain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":131,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"c9865fc6-3d9f-40f1-9e1c-f6806cbd695c","block_type":"box","text":"than through client commissions.","page_number":131,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"8159b9f8-1a0b-4ccd-a64f-b4204efde081","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":131,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"892108f8-ec50-4b8a-bd69-7ab01e02dd98","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":131,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"35f2eb79-8289-4bd0-8a9c-f4e5c3bf387c","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":131,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"f086cc00-c5f8-4ad7-832c-279486b5c158","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":131,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"9a77c7ec-bd7b-4c08-a6f5-69cba171b929","block_type":"box","text":"services may include, to the extent permitted by law, research reports on companies, industries and securities;","page_number":131,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"d951e427-7a03-4fca-976f-6620b06f1c0e","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":131,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"ea60687c-7bf4-4623-90e8-baa73f4368b2","block_type":"box","text":"research-oriented software and other services and products.","page_number":131,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"8be36035-8791-4da6-ab92-f783e9f2bc14","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":131,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"6a7e5c4b-1b87-4960-879d-0f374e2f742d","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":131,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"17110151-507e-4456-b536-650d6fce0417","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":131,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"65fde1e7-84e5-4657-a2ce-86ea31511cef","block_type":"box","text":"disproportionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":131,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"ba9b316b-d2bc-404c-b22b-fecea19163df","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":131,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"5d1317b1-0e3e-4a02-980d-59a6a8d48356","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":131,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"40a45b97-a4e1-4cc4-b4a6-17e3a33dea80","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including disproportionate benefits, of economies of scale","page_number":131,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"1b5af6d0-60fa-4de7-abc0-a07bbc392103","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":131,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"239728e5-cbf2-41da-b138-f68b7505df24","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":131,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"565ba18a-8142-4d46-8bc5-c9cb96e9cd5e","block_type":"box","text":"and services itself.","page_number":131,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"21ef08a3-95ce-4cb5-ae97-bda8738566a4","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":131,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"8ff31161-31a5-480d-94b0-b8353dbb0618","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":131,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"18e05d59-336f-45df-8dc2-937f72d00a3d","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":131,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"27304062-3b89-4a43-a5c5-d15a4e262901","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":131,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"55bf722d-f8d7-416c-a6cb-e46c7e26ed6f","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":131,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"8eeab4f5-32e3-4948-9f90-09c724bd0ff8","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a portion of the commissions or","page_number":131,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"4ab2efdb-cd3e-4029-ae9f-b7001628abc7","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":131,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"2d66a125-8e6f-442f-a471-92dc4063569c","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":131,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"fe370e3a-4cee-4279-b099-d36bd5804b54","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":131,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"4e656f74-db08-46e3-a0e4-335440b34858","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":131,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"95511011-290e-4c3f-935a-84356ccb2bd4","block_type":"box","text":"securities transactions for certain types of securities. These ECNs may charge fees for their services, including","page_number":131,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"842a2cbf-f884-4c5b-920b-994bb84895f8","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":131,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"42bfb61f-64d5-424c-bd02-62307f487fdb","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":131,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"ebe2bb54-e010-4938-96c8-a61ab65d1698","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":131,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"f4fa4508-a6c4-4c92-a0a9-d648a6699f4b","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer volume","page_number":131,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"468b5840-3eee-45f0-98ec-52d3328b0b59","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":131,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"05ba87bf-738e-455f-81fa-12e799235319","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":131,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"f73356dd-aff9-45fc-bbfd-a337bd085ebd","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":131,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"45a0dd20-075d-486a-af6f-1da9cd7d001c","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third party brokers select MEMX as the","page_number":131,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"c8469b7b-5428-48f5-8080-e0b232c03821","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client portfolios.","page_number":131,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"5466d3a7-bd0b-4b4a-993e-35b18becd517","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":131,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"d6e8c758-8939-4374-896c-4d9d5bac6831","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":131,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"ea6bc708-61f7-48fe-b212-7de911def645","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Nevertheless, notwithstanding","page_number":131,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"7b3d44e2-3309-4a80-a572-9cd23111ab64","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":131,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"991035be-3be5-43b6-8890-c743cd18ddf1","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":131,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"8b7042cd-89d2-46ed-9643-1adfbb70be3f","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":131,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"5bb03f36-89c2-4765-8c88-25ac02c6bb37","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":131,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"1dfc1269-0938-473b-8404-f014ff7ecba9","block_type":"box","text":"II-93","page_number":131,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"de2d65ec-1bde-42ae-96e6-f80995f4554d","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":131,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e9723fe7-0876-486e-bb5f-50aaa2598e4f","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":132,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"7547aebe-74dd-4cc6-aa97-0771ff2aedce","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":132,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"c73413b0-39ab-49d7-8b93-353d8a9c72a9","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":132,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"570b92f8-e81c-4f88-91ac-a900396dc5af","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":132,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"a847bd44-8ef4-4b0e-8291-5f68e1bf7df8","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":132,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"c3782e7e-a287-4558-909e-3de864d19c99","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":132,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"a136679e-c6b0-4b52-b076-bf86a57de5d5","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, portfolio diversification and expense ratio. 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BlackRock and its sales personnel may","page_number":132,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"ec680d36-4238-4064-b7fe-a5bce52b1b1d","block_type":"box","text":"directly or indirectly receive a portion of the fees and commissions charged to the Funds or their shareholders.","page_number":132,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"57071fa7-c1cc-4b93-b383-008d142b541f","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":132,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"d4d8ae1a-3392-4af8-b4c0-32d6772a88c1","block_type":"box","text":"management. 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BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":132,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"5f35fd04-c05c-46de-b6d2-3220e6808078","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":132,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"b69ee3c4-d336-425d-91d5-e0a10af3aa5a","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":132,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"c6135859-74cf-45c9-aa1b-867f76db1755","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":132,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"b06581fa-3e44-455b-a816-e5580c0043f0","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":132,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"54a7f994-df29-4cb8-a642-8af356609c68","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":132,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"5bb94099-290b-4a8f-96d6-6712ed46d630","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. 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The fair value of one or more assets or","page_number":132,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"fb2e2902-efbb-4375-8dc4-3db8c8a1587a","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":132,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"38c4bcaa-aba7-4b4e-97d7-2657013b5ded","block_type":"box","text":"period in which the particular fair values were used in determining a Fund’s NAV. 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In connection with any","page_number":132,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"aa6869b5-9df3-4894-8069-bfa435821e60","block_type":"box","text":"such investments, a Fund, to the extent permitted by the Investment Company Act, may pay its share of expenses of","page_number":132,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"2117a489-fbb3-4dcd-a76c-3ac8b023ba9f","block_type":"box","text":"a money market fund or other similarly-managed private fund in which it invests, which may result in a Fund bearing","page_number":132,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"f31ae2cd-39cb-4f3f-837d-6c46916b6254","block_type":"box","text":"some additional expenses.","page_number":132,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"bae7df56-5429-4b44-a9e3-20672d426592","block_type":"box","text":"II-94","page_number":132,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0a2fde86-eec1-42cb-8324-3b97b6cd5ca9","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":132,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1fd31d09-27d3-4cd3-85a8-0718b4517567","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":133,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"f658b800-e046-4945-b053-4c682b7cb72b","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. As a result of","page_number":133,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"d9b100c2-6933-4e21-a5fa-d747eb0a2037","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":133,"box":{"x":69,"y":75,"width":764,"height":11}},{"id":"4e3f7f13-b88b-4140-bded-bf4ab0312baf","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":133,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"e1d89599-8665-4e39-b529-902692ed32c6","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":133,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"0012b7a4-3c24-4513-bd92-a1bbfd0cbafe","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":133,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"c9733de4-fcf0-4200-8717-452ead095f41","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":133,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"e48d06e3-7852-4c23-ba07-5ffbc4aeb28f","block_type":"box","text":"possession of information regarding the Fund’s portfolio transactions. Each Code of Ethics is also available on the","page_number":133,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"7d63e862-2272-4f11-86e6-aa46ae13d6ae","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":133,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"83cd470a-be04-42d3-b10e-0092de9a3cea","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":133,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"20908684-d9fa-4a48-89a9-6f47bbd0b547","block_type":"box","text":"BlackRock will not purchase securities or other property from, or sell securities or other property to, a Fund,","page_number":133,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"48dcc62b-9174-4fb4-afec-a57bf5af8608","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":133,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"72be816d-8594-4dfc-a20c-7cd885b68ac4","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":133,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"cd446676-6742-4497-949b-9595de7fdf44","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":133,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"063f8b53-16d2-4491-95e3-4871fc6023f7","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":133,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"cc962c2f-a982-433f-bdbd-dfe6b56ec2be","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":133,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"dbd8fa0c-0570-4ab7-a0e3-1c7b7083e205","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":133,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"e4201a95-9143-4f53-b0ad-4e9a6f91129e","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":133,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"3630f931-c8aa-46f2-b7a6-af78284eeabd","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":133,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"24a95151-b0e1-48a0-a2d6-355ed8d2b812","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":133,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"af8c92bf-23f9-4b44-a00c-eb8fc341a162","block_type":"box","text":"initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":133,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"56a6c86d-04ab-4f1f-a068-abf7256428aa","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is performing advisory or other","page_number":133,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"827d0310-9897-4133-97ea-32ba510d6896","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":133,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"3819e6e7-6e17-41c5-9616-47d57d053325","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":133,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"9d63a707-a838-4166-803e-29a5ab44d558","block_type":"box","text":"of that company on behalf of a Fund, particularly where such services result in BlackRock obtaining material non","page_number":133,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"c6d675be-5d93-4a56-8b04-452002f4e788","block_type":"box","text":"public information about the company (","page_number":133,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"5f42cc00-cda6-41a0-ac69-07651370bfae","block_type":"box","text":"e.g.","page_number":133,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"934c3984-6bc0-431b-b0a0-e11c2150bd53","block_type":"box","text":", in connection with participation in a creditors’ committee). Moreover,","page_number":133,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"a0529d11-989b-4cae-a63c-afef25e83be0","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":133,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"55bdd0d4-d3f5-4b6c-bc8e-7ed5874da44f","block_type":"box","text":"BlackRock from effecting certain portfolio transactions or taking other actions in respect of an investment on behalf","page_number":133,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"b5a69af1-3cc6-4674-af0f-e95462d9cf60","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":133,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"30ae404b-6054-4108-bfc6-1ac8ac207af3","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":133,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"f612d4f0-d945-48e6-a38d-752dfe834831","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":133,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"c17a3901-02c2-42d3-8a74-c1e91426ae4a","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":133,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"bf6bbcd8-7e63-464a-a4f3-e203371681e8","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":133,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"bcb8c7d2-7822-4ada-bf13-6260b63e123b","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":133,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"e626316d-c8d9-40c1-831f-913b7595a632","block_type":"box","text":"of the issuer.","page_number":133,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"c4bed0a4-8a47-4ef1-8cad-12cd4f3483b6","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":133,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"4cb2e1d2-7ca3-4793-8040-6f9e1843a6a4","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Certain","page_number":133,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"eb59626f-f340-40b7-b83e-eb420fc02b00","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":133,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"112dbfd7-39e8-46e4-a3dc-74e2f8fab2e3","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Certain portfolio management teams within BlackRock may","page_number":133,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"48d2c0e1-c7c5-411c-a14d-afa067432541","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":133,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"0eebaeb8-c3a7-48b5-adc1-2b5f97062988","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ portfolio management teams. The","page_number":133,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"77ac82b7-195c-4079-97f8-c8e74946f0bc","block_type":"box","text":"various portfolio management teams may not share information with each other, including as a result of certain","page_number":133,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"297aeb71-a191-4de5-a9fc-c6a0e5853a54","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":133,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"ec5ad3ba-abce-40d6-b10b-66de65c0c3db","block_type":"box","text":"BlackRock has established certain information barriers and other policies to address the sharing of information","page_number":133,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"4d847704-8449-469b-89c6-fc23673e1fca","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":133,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"59721a2e-1a69-42a2-a8b8-36846dd28e32","block_type":"box","text":"portfolios and voting proxies with respect to certain index equity portfolios versus those responsible for managing","page_number":133,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"196554d5-1a46-4f38-8900-3fa41454521b","block_type":"box","text":"portfolios and voting proxies with respect to all other portfolios. 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Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":133,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"fbfa08dc-f87f-4689-9c2e-e3ad899bf8aa","block_type":"box","text":"with the benefit of information held by certain areas of BlackRock.","page_number":133,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"dcf8e7f6-28e0-4be8-8299-21896a70f35e","block_type":"box","text":"BlackRock may determine to move certain personnel, businesses, or business units from one side of an","page_number":133,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"a2046e2a-638d-41ad-a42a-5ef46da3f4eb","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":133,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"56b99b74-a501-490e-91f3-1e943dfe5447","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":133,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"08176b2a-1aa2-4de9-bdbe-574f403eb59e","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":133,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"176b4ec6-6b44-49da-b4e6-bb4f5a91fcd6","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":133,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"9bb5f24d-8c4a-4d67-b322-6b0831b7c4cb","block_type":"box","text":"II-95","page_number":133,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"05daea3e-23a4-49ca-9012-7e97117b4ecd","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":133,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"58f50198-2641-4a6b-a7d7-f2b8ff2ed5ad","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":134,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"91564eca-bf10-434f-a70f-c2ab893fa50a","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":134,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"ec01cac9-66ba-472b-a4f8-824421ac8352","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadvertent crossings of the barriers,","page_number":134,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"0061ae0b-6d67-4709-bd7f-cfd2a91fe367","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":134,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"f17a8029-d637-467d-b2ad-432b41d44baa","block_type":"box","text":"a barrier.","page_number":134,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"7b2c77a5-7764-4d54-9896-2762d9e23124","block_type":"box","text":"Although the information barriers are intended to allow for independent portfolio management decision-making","page_number":134,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"33bc2a94-ec2e-45df-bdd1-3b313fce59bd","block_type":"box","text":"and proxy voting among certain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":134,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"ba7c39ae-0675-41d3-8594-d26f8f329c0f","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":134,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"d31986f6-f388-4cb0-8837-912711c59a5e","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":134,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"93521bbb-0c62-4bc7-aa86-044000ce3538","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":134,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"53365876-f4fa-48be-9a3e-29ef7593415f","block_type":"box","text":"issuers. For example, in certain circumstances where a BlackRock client invests in securities issued by companies","page_number":134,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"cbf7fddc-f206-4888-9ab1-d0cabcdf20b3","block_type":"box","text":"that operate in certain industries (","page_number":134,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"3609fd3b-d8f4-498d-8933-825fbbb0b92b","block_type":"box","text":"e.g.","page_number":134,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"20a8257a-6b0c-42f2-aae3-742a023dac0d","block_type":"box","text":", banking, insurance, and utilities) or in certain emerging or international","page_number":134,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"20038872-786b-4d7f-a913-9d1b4069a859","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":134,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"6ee36de7-5a51-4e73-8a5b-663e21de7be8","block_type":"box","text":"e.g.","page_number":134,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"a76059dc-d979-40d2-97b0-4479d36fc1a9","block_type":"box","text":", with mechanisms such as poison pills","page_number":134,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"64dc1afa-1b64-4410-9c38-4e94683e7c9c","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in certain futures and derivatives, there may be","page_number":134,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"38c86114-384f-40e6-b4d6-cd4ac90cefee","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":134,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"1db4e484-513c-41b4-bbda-47efd4443701","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":134,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"ec7db163-3956-4f0d-91aa-465285203a7a","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":134,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"6876d974-22b1-462b-8116-b5a53134c382","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance reporting, increased","page_number":134,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"746426dd-aa66-4036-824c-695da07a0138","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of certain restrictions, BlackRock may also","page_number":134,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"0d59c83b-3dfc-4ff9-8e18-33db76fb9ee4","block_type":"box","text":"seek to make indirect investments (","page_number":134,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"01bd204a-2684-4793-b96d-b8735c4ea333","block_type":"box","text":"e.g.","page_number":134,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"146b989d-d940-478f-bc82-eca49a8555de","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to certain","page_number":134,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"f52868ce-f1a0-40d2-9f96-bb8b95b4d306","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":134,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"bfeac893-956d-4bd6-bf58-fe834155c26e","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":134,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"647a10a7-0c8a-4c38-b42a-7d6ccd10753f","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":134,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"8ce3cdfd-f4cb-43ac-b5b9-ec8133501656","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":134,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"a4ad08fa-b926-4ed2-a264-f00b57b19e5d","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Certain clients or shareholders may have their","page_number":134,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"3590e3e0-8652-4c87-b261-2197768d0453","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":134,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"e53a7231-80b7-4643-9cdd-79c3f20cf8b2","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":134,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"dde664bb-9323-4b34-8e88-d413b5663452","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":134,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"64b24e09-5dc7-47ac-a0aa-2632d14a0bb3","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or undertake business transactions, may be restricted by","page_number":134,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"0ae887a5-1b1e-4184-b99d-355b340e5de9","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":134,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"4bfa01ce-e04b-43a4-98ac-7eb1fa727fa1","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":134,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"cce8d069-327e-4575-a2b2-a70819da0b9c","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":134,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"d1d323cd-9288-48e5-9af5-7080786c1daa","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":134,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"562cb24a-f157-48af-b1a3-162360cd478e","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":134,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"a33830c1-95f4-4c8c-a2d9-ad577e60e23c","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":134,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"4adf3241-11ab-400c-b9ac-9b84f34ed338","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":134,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"6b634f73-c67a-4913-9cee-183dc79f4ba8","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":134,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"69570f07-656e-404e-a58d-89dbc30a93b5","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":134,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"a2310eed-4edd-4dbb-954b-2286ef6c941c","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":134,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"81084653-fce2-495a-b541-325e9a31c9c2","block_type":"box","text":"restrictions could negatively impact a client’s performance or ability to meet its investment objective.","page_number":134,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"6d2101c2-a8f7-4205-b2de-dc547c98e082","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":134,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"3af1994a-445e-4e82-a295-ad6329021a5a","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":134,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"a3b34d7e-3588-4066-ac37-c58bde7a0eb3","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":134,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"14ce0530-10c9-4236-b06e-b668bb89f3da","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":134,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"4e58c181-0da7-443e-8990-823bce380e24","block_type":"box","text":"from taking certain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":134,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"2087ea5e-23a6-4e22-83bf-9a393c72ed41","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":134,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"dd53583e-f270-4857-9b8c-605b60e21f29","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":134,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"e2d584ad-63bf-4133-84cb-15a899c5eaa0","block_type":"box","text":"BlackRock seeks to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":134,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"c47a3c2f-9e32-42b7-ba40-60127dd9a74a","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent the","page_number":134,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"7487427c-a06e-4932-aaca-e8f207f501c8","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":134,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"452800c3-029e-457a-9314-31c9f9ad1e2e","block_type":"box","text":"certain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":134,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"ac834865-4ff4-4f65-ae69-2345104a91da","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":134,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"c0d3fd48-ac64-4f78-ae56-c03fd76c38f7","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":134,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"ee9414a5-4573-45ca-a24a-afef1ac59dac","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":134,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"3e095a17-4cc6-42a6-913b-7faece0779f5","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":134,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"d1eece37-9ffa-4377-adac-76e804811b27","block_type":"box","text":"actions. 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It is possible that, despite BlackRock’s intent to either comply with or","page_number":135,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"5a7571d5-891a-4272-b5e0-822b3e296b53","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadvertently breach a limit or violate the corporate or","page_number":135,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"36d2f988-bbce-465f-b1a6-65fc6f68d563","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":135,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"63991a8e-631d-4cd6-8ebe-a140fc9a3656","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger reporting requirements to governmental and","page_number":135,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"60791885-6623-418e-a187-064d32c765eb","block_type":"box","text":"regulatory authorities, and such reports may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":135,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"0f2ebae5-6d3c-4205-a737-1a46ddc571bb","block_type":"box","text":"strategy with respect to such security or asset.","page_number":135,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"abf82196-4d0b-4795-927c-24b3d41584c5","block_type":"box","text":"BlackRock may maintain securities indices. 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Any Fund that enters into a license for a BlackRock index cannot be assured that the terms of any","page_number":135,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"3c4bdaf6-7870-4d59-916b-ab5bf5f1eed6","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":135,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"ee97da0f-e525-45bb-8a24-02e4294f93e0","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-party service providers to a Fund (","page_number":135,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"dc40db8d-7745-45c4-9f32-e67b3504ec43","block_type":"box","text":"e.g.","page_number":135,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"916f05f2-188a-4df1-baea-3c9f765230e8","block_type":"box","text":", custodians,","page_number":135,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"df6bab9b-d776-44d8-8507-d9e06b584581","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":135,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"79470ca9-0393-421e-843b-efb94274e62d","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":135,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"05cb1ec8-175b-4a1d-ab2f-a01cffe02161","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":135,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"dc2bf7be-ca64-47d5-b32e-16b058fc96d9","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":135,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"e73df515-4d87-4c0c-96bb-88efeedebc0e","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":135,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"b3355a55-c20c-4aa9-816a-8fcebf200b75","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in part, to BlackRock, which could result","page_number":135,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"8f52d505-8e86-4dc0-8ae6-9372f558ad06","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":135,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"d5966254-6c31-4803-8b8d-a88644efa9ec","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-party service providers to a Fund, or the","page_number":135,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"4d3bd7ef-6ecf-416b-a5c6-1b83bcddd148","block_type":"box","text":"selection of such providers, particularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":135,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"a9ff68f5-aed0-483f-a4d3-620c7b4850b3","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":135,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"621b558b-ccdf-4d54-a6a0-f65423c51309","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":135,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"d129cb1f-c4a7-4629-91d5-45ddbbeb9134","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":135,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"a4d1cfad-2539-40c5-b3d0-1f62b0137940","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":135,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"79734a2b-fd84-47a3-b7cf-b6509e939773","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":135,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"6f85a08c-41df-44a6-8bea-0320abe7518e","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/or","page_number":135,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"308f24bb-5772-453d-aadb-45776f6e0244","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":135,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"7608cfe1-b5e2-4997-a695-a4d596940f14","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":135,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"b0160253-54f1-46f6-8cf6-c49f4c788552","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":135,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"52719abc-9d28-46ce-98d6-0240bd9a22b1","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":135,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"b9858e47-b7c8-44ab-a890-54b8773f2718","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":135,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"84e36543-33c9-4816-9920-a772eb8cbe78","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":135,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"0d899292-cf8d-406f-8a71-22d6ace22cbf","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":135,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"01ecabca-ca33-4a08-8985-d26e1fbf8786","block_type":"box","text":"provider.","page_number":135,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"25c3e409-72d7-44fd-a1ef-21dc39bc50d7","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":135,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"6e4d2fb4-8b97-43d5-b68b-4932276cd8ea","block_type":"box","text":"arrangements for certain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":135,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"0cb84752-ad0b-424a-8f4d-b8898fa1d158","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":135,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"80101942-6253-4563-b687-f7cc4445c22e","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":135,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"98046331-0d04-425b-b4d6-4cc12d7769e5","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":135,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"70996d2f-0820-4f58-afd3-ef6ebb0803f2","block_type":"box","text":"PURCHASE OF SHARES","page_number":135,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"174f9634-4f15-4f24-b580-a7824dccd0e6","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":135,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"56b8c6f9-04b0-4e08-9b35-99d9cd08de24","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":135,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"56753d6d-2778-478a-a738-101af6a94643","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Short Obligations Fund are","page_number":135,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"f19dd8c4-c0c7-462f-a7a6-619da06bd7c5","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":135,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"858d3cb5-621a-48b5-b5e2-5a6608214df5","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to certain investors purchasing shares of Funds","page_number":135,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"0b5b8c68-d90e-4e08-8295-7e23398952dd","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":135,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"a7890a5e-a5ff-456e-b1e6-c6e8f4e8eaf7","block_type":"box","text":"II-97","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5c3a4886-6876-42b2-b4f4-b795d6f2cf73","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"653d4813-154d-4cc3-8be2-6b3fde44f79e","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":136,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"b41d6ef1-fa8c-49f5-82c1-521c1dde192e","block_type":"box","text":"Certain Funds offer Class R Shares, which are available only to certain employer-sponsored retirement plans and are","page_number":136,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"78982bec-f9a1-4e80-8d2c-8e9c377594ce","block_type":"box","text":"sold without a sales charge. Certain Funds offer Class G Shares, which are available only to investors on eligible","page_number":136,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"51e1167d-b0c3-41b1-b075-fd47fd6c54bb","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":136,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"128f02e6-4afa-46ba-8402-b6a28e928e81","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, certain Funds offer Service","page_number":136,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"c71fec55-9798-46ad-9bfa-eaa49b6232a9","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to certain eligible investors. Please see the","page_number":136,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"2019dcd9-ec42-46f2-a343-619c68261130","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":136,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"3808a009-143b-46d4-829e-7b6ed5b1cf31","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":136,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"239fb151-d38c-44bf-a858-6a246d8d8f4c","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":136,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"7aa93c34-1ded-4148-8817-5d0ce3d7cbd0","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":136,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"1f60a066-7799-4215-a73d-060a3ca87994","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":136,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"f8597bdc-7f86-46fc-8054-56abbfbeaed2","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":136,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"597b29f7-eea8-4751-9d49-0d2988ccb357","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":136,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"0d3c82f1-077a-4f80-8f81-9450be6c6534","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":136,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"6fcfa890-4ea5-482e-8a6b-8a24da82077c","block_type":"box","text":"Target Date Funds that allocate a portion of such purchase order to such affiliated underlying fund. As to purchase","page_number":136,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"bace81e0-9e4c-4d0e-b987-57a8548f2e32","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":136,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"3b1d719e-a2ab-42c7-b2d5-d97ebb300550","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":136,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"81571275-f740-4fb1-8260-5b69fc724045","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":136,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"d7235672-2243-410a-b106-e21507cf0466","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":136,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"da5bac30-c608-4d5b-9385-7c826b765ead","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":136,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"79c0b445-8ece-4ae3-b062-1b12ca808cc0","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":136,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"6ff20b33-ec1f-449c-878c-d2264c100d11","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":136,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"3076dc8d-9dfa-42bd-ae0b-c62926bdbda1","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":136,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"b763cc8b-b754-4819-a77f-4e22d7449f4b","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":136,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"5884f511-2de1-47e7-9cd1-557409745089","block_type":"box","text":"The minimum investment for the initial purchase of shares is set forth in the Prospectus for each Fund. The","page_number":136,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"12a78a2b-2c5f-4058-9622-cca8e5d28594","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":136,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"6637bd37-b2f9-48e1-bcff-40a10c1b9020","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":136,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"59640715-dca7-4b50-a841-b60f0efa79a7","block_type":"box","text":"investment is $25.","page_number":136,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"4fb603b2-064d-4c27-bd2d-b8cb4afc0bbe","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":136,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"20692e07-c7a6-4e8a-a9b1-e893f676348c","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for certain investors","page_number":136,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"47ec33b2-40e2-4021-b8c4-58176a24b1e8","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":136,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"7640b2ad-4b63-40eb-99d6-a50dbb27eb44","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":136,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"91a1881b-d17a-4b80-916b-abab1db50efc","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":136,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"0570a3c2-fa04-483c-a0c0-47a860e2c989","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":136,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"933c0e35-df11-4b80-b2e1-f64dda7e6a3f","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":136,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"3b2a9d45-d7fe-49f0-a0a6-b85a8518b438","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":136,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"79109d7a-73be-40e3-a4d1-027da7ac4838","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":136,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"a98b4e76-acc9-4f66-a055-2e2bbd754602","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":136,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"53a9a870-02eb-4240-becd-a0f56c49a15f","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":136,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"72440520-48f9-4209-9102-5c8c84174189","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":136,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"84968c88-b31c-43c8-8238-7f278f1b995d","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":136,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"a54062bd-44e3-4f54-bc14-b8cea5c184a4","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":136,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"85869d5f-56a4-46d4-add7-e93e6536ae77","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":136,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"9dbe6e62-a7ab-4fef-80b9-53242f3fcd9c","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":136,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"67dabccd-39b5-4fa1-aa75-dde685c582bb","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":136,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"e555376b-fcd2-41fe-b11c-df05298716d4","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":136,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"2b75073b-ccbd-4829-8703-0ca83e89c876","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":136,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"224d70f5-8541-4e18-94c3-f9d804a56b13","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":136,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"0a1769a9-c6dc-450e-97f1-03f11453c7a8","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":136,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"66c94209-a9da-4864-82fb-edf14200f08d","block_type":"box","text":"group of individuals whose sole organizational nexus is that its participants are credit cardholders of a company,","page_number":136,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"f19dcf69-6a31-45ae-b6b1-1c6947275da0","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":136,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"71bb16c1-2e5f-478d-8b41-8e66e32e7213","block_type":"box","text":"adviser.","page_number":136,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"e1a30e19-cda2-44d1-b0cf-c5f39ca25a00","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":136,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"4b7424a4-ed69-49b2-844c-21fe09fdd51d","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":136,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"4c17487d-a036-44b4-a837-05c9c05fd169","block_type":"box","text":"II-98","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ce1a8748-f169-4d50-8e9e-dd4cb8a3b09c","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"442b7715-fe07-478a-9c27-797bac73aec3","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":137,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"c3682814-c53a-45e5-b7fe-25dfbd67aa65","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":137,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"dd215cf8-d3de-44cf-881d-e5ecdd3e07bf","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":137,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"375ce974-bf41-42b6-aa02-d796f00b8fb2","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":137,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"e3bdf570-4883-41df-88df-a53bf6defdf5","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":137,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"70cb2d87-917b-4cf6-a09a-46a9ce9f23c5","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":137,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"88bbdff1-b502-4595-8227-0db7e7276ea3","block_type":"box","text":"also be restricted from making additional investments.","page_number":137,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"57ec3d87-cd53-4369-93f1-14eb9b62cb6a","block_type":"box","text":"In-Kind Purchases","page_number":137,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"e58e0ea8-48e5-47b7-b4e1-8d88eaf2f7c6","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":137,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"de5dfdd4-485d-4ef0-a2a9-1f5d17acebaa","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":137,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"ee13b33f-24ca-4350-b42d-7e1bba70f359","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":137,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"30021d7f-10d8-49ba-a375-ad5b81307693","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":137,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"04019a55-2759-4dfa-a06d-fda9a9c9d3b2","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":137,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"0698204b-4f25-40d0-bd26-30b0424cc863","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":137,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"969aa918-96a2-40cb-a660-996f5c9fe368","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":137,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"9864a495-b009-4073-8875-7ba076b5075c","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become the property","page_number":137,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"a0ad3afb-de30-43e6-a34a-64d6d7dace81","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":137,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"51f7621d-20ca-4e8e-847e-d0a53faf8cdd","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":137,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"614a7698-47e4-47f1-bd05-c9491d5547a3","block_type":"box","text":"has settled.","page_number":137,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"95eafc1c-ef23-42e2-b9d0-81cf1806621a","block_type":"box","text":"Institutional Shares","page_number":137,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"1842dfca-3faa-483e-8562-b9dc1389fef5","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are eligible to","page_number":137,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"ae842a3f-fac7-4482-afee-4f6f2e42c541","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":137,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"022e89bf-dab2-46fd-8af8-21a12e1b9be3","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":137,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"39e8545f-7faf-4282-96f1-907378e25006","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":137,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"f2415db2-cbca-4918-bf69-e0b032ee2398","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":137,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"7c7ea357-dbd1-4fce-ac78-d0160f0587f7","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":137,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"79a246d1-b47d-47c7-961a-d535df2c5adb","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":137,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"169678fb-84c8-4990-acee-81070b1e969f","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":137,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"037ac71b-8120-4770-a811-962d5c4442a1","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":137,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"61a17953-3a0d-4079-a7cb-7d4d282c2567","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":137,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"dd8f8eb5-7249-4c4c-81e6-4d5b39ad7070","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":137,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"ab31b9a1-0478-429d-b275-3d61b4a75572","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":137,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"1ff6865c-6f38-435c-84e8-6ef1ce9f4232","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":137,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"77528645-c4e0-4251-9007-12e98ad34de9","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":137,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"66b65223-a084-4904-901c-b77fdf1ef731","block_type":"box","text":"these fees and conditions.","page_number":137,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"f59922b8-3c3b-48b1-8b5b-cd45f5c9d99e","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":137,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"5dae124b-333f-4e1c-b06e-12ce9e2f7116","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":137,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"d4edfee4-fc31-4be9-9332-20b2cb90e1bb","block_type":"box","text":"certain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":137,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"2f1a4a2e-31b5-4fe8-9c37-26f1e5761c38","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":137,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"7094d854-87ca-4ab1-bfba-fa7954975f3d","block_type":"box","text":"incurred by the Fund.","page_number":137,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"8152fdab-033d-487a-b390-174d1fa5126e","block_type":"box","text":"Certain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":137,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"9a06140b-f85f-4466-a48c-6cbdb7b4ed94","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":137,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"bba9026b-7324-4008-ad3c-5b0add840ac3","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":137,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"641bb05d-94c8-4f7a-b82a-e38e920f3fac","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":137,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"d3982bb7-ed00-4b84-9189-20c6b44aa4ad","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":137,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"86acc664-eca4-4c75-96af-fdc5f9eaaaa3","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":137,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"176700a5-06e5-42ea-883e-b6a1d9e4a4c1","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":137,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"97f098ef-ae17-4ba0-83a0-0ace2fa9fcbc","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":137,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"91572b9c-8076-43bc-a124-c5cad61962fd","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":137,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"4b2f5769-a84a-4f9b-85e2-9da74a8899e5","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":137,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"78b74b88-b002-44f8-8b29-5724e90344f2","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":137,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"7f9b69b1-6190-4001-ae6b-a08ade0c57b4","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":137,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"44612bfe-d649-4dca-bf88-7a699b9a8b60","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":137,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"d4fc759a-29bf-4318-a84e-5b823a303b31","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":137,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"623704e5-2a99-40ca-be42-6dd4dfa2a9f4","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":137,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"4ef25fda-9cca-40db-af5c-8693cc2a5130","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":137,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"aae24f2e-6ab6-4db2-b821-c6c07138b85b","block_type":"box","text":"II-99","page_number":137,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"39916e77-790c-4125-9fd8-b53ebe7b6b6e","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"19f6cbb2-2648-49b6-a50c-6d27646de206","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":138,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"623ab640-9406-4cf9-938f-2e5b6658b429","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":138,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"c7479990-5fb7-4ba3-929a-d8cc1de91995","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":138,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"69970a63-e327-43f6-9ab6-740243152f6c","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":138,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"099e4915-587f-4eef-adb1-47d23b335a33","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":138,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"36262068-7b39-4ab4-b4a6-46750696a25a","block_type":"box","text":"minimum initial investment of $1,000; trust department clients of Bank of America, N.A. and its affiliates for whom","page_number":138,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"71737b97-bbe1-447c-913a-b973e61dbacf","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise have","page_number":138,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"f9324656-6819-43ce-bd9e-6b1d6dbb4c93","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of certain BofA Corp.","page_number":138,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"13e2ea23-5c52-4ffa-af68-bb1242afad18","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":138,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"c0fc82c8-70e4-4927-925f-1c63e901c22b","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":138,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"ae6a2e08-9c30-4a73-837b-9c7bdc0c085e","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":138,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"dba5b04c-e28e-449a-9499-f3625c0095ec","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":138,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"24354d25-c096-4b2b-8a0b-a09a34072586","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":138,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"6c328b0b-da6e-4fc1-b2f9-bd111c3f7056","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by virtue of the familiarity of these persons","page_number":138,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"6cb9fd0a-97d7-4b90-b52a-d9b0d7c8d9cf","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":138,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"b0feda2f-ecbe-4ef5-b772-59e8bc464ec7","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":138,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"4c592183-615c-4818-942a-67940c96ee70","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":138,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"8eafce88-b632-42e1-b163-e00e7ff68386","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":138,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"9f6f78f2-f6c5-4d27-80fa-b719290fc723","block_type":"box","text":"Shares are offered only (i) for purchase by certain employer-sponsored retirement plans and fee-based programs that","page_number":138,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"77c984b8-74d2-4a31-ae68-67f064b7d7a3","block_type":"box","text":"have been previously approved by certain Funds, and (ii) to certain investors who currently hold Investor A1 Shares","page_number":138,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"1d89e2c1-dc7f-4f03-b35c-8ed3674efa07","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":138,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"260042e6-280f-448a-a773-16369f2f590c","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":138,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"6f400621-25d8-43c1-849e-cc8e458561f6","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":138,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"97cccc29-dbd2-4841-b161-123801c94cda","block_type":"box","text":"BlackRock Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":138,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"7e6b221c-e270-4f96-bc6a-9f36183cd405","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":138,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"cdbc2db7-7f87-4bad-b1e2-a869e8f1b7a4","block_type":"box","text":"particularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":138,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"4af82b43-7802-4940-a539-7dca72c35223","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":138,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"daba5639-0979-4ed7-8dee-5b4b05d94735","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":138,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"3d487bdc-62c3-424e-a87c-6277a0e74333","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":138,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"ccb5cf9e-97b8-4a90-bb91-453f2ab92946","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":138,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"93aeebcf-b9d6-4335-87f3-7dc64d4224bc","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":138,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"1bc88625-64c2-409f-87eb-0d82b19ccd28","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":138,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"8bf16007-c67e-46ed-9778-5a8dd462e769","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":138,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"d97e862b-fb33-4ee8-8d22-233d19b8da93","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":138,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"5945336c-3d32-4251-8925-25c51c7a2a3f","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":138,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"dc812316-be80-4468-8bf4-7c5589edf0cf","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":138,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"04c4b7c0-8dd8-4ac7-b3c5-77bf5009202d","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":138,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"b8b97cd9-1e43-48b2-938e-cf65923e36b0","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":138,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"38512209-316a-4f07-b3bb-c873582a31ef","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":138,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"57a3ce0d-57b7-4015-9ffe-148922ba5a04","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":138,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"0f874062-1d65-415c-8fa8-8a5dffec0ddb","block_type":"box","text":"periods indicated.","page_number":138,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"16540a55-aef5-4dd9-964a-293e3754c55b","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":702,"width":806,"height":11}},{"id":"78837685-756a-4f3e-949e-d6cc0b586f74","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":718,"width":830,"height":11}},{"id":"8e8a7a04-cd66-4f80-b3dd-a912152d55cc","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":732,"width":832,"height":12}},{"id":"b01d5366-cfd0-43c1-a9fe-e8638af2e9e9","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":748,"width":714,"height":11}},{"id":"3922c609-21c8-4546-8ea5-82975ca8750f","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":138,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"521967be-0f39-43d2-9088-a99409e8c047","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":138,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"16d1efff-00e4-4245-9a35-448ad91dcaa6","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":138,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"d473da52-ac36-47e9-b915-6c2390167f34","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":138,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"331065e4-5edd-4f76-8e64-f7d933b7ffbd","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":138,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"9b53b42e-9e31-42ea-9177-55eb3014e1c1","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":138,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"e34ef663-b30f-44e4-897c-c7ede7c15c03","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":138,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"0c293edf-0e3a-4ebc-b730-d2cc65493bf5","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":138,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"14693169-bde9-464c-80d5-96e5cb7b902f","block_type":"box","text":"II-100","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"06104bd4-0c02-4ea8-9314-0089e56cac59","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"14b82213-620a-40bf-9953-062c92b684f8","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":139,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"244eb5e1-da7c-42f5-bf9b-a1886a403c96","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":139,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"7b60f0a3-035e-4559-8655-751faf1b991b","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":139,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"7ab6951e-717e-47e0-85e5-90a6d035156f","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":139,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"60470ca9-bb1f-42fd-8744-be7d59ace8b7","block_type":"box","text":"Reduced Initial Sales Charges","page_number":139,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"16aa7263-7c9d-49d2-b64a-757561ac66cd","block_type":"box","text":"Certain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":139,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"df9e180b-4ace-42dd-9023-8a641c4748f2","block_type":"box","text":"and/or the reduced sales efforts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":139,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"64dc9db9-ca15-4ae0-9fbe-07961cd244d1","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":139,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"79bfab8e-4249-4584-a01e-8e3c2bf9ae4a","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":139,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"fe2b3604-071f-407b-b400-2a5b9cc8a424","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":139,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"1fac6af9-5fe6-4c90-871a-ea31e70b8e3d","block_type":"box","text":"requirements of the new share class. Certain sales load reductions and waivers may be available to customers of","page_number":139,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"f4999b08-42e7-4dcf-96ed-18678bcbdbf9","block_type":"box","text":"certain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":139,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"84b99d47-3f7f-42fe-90bd-79dbec6eab42","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":139,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"ad4928e6-a7a5-47f0-9f02-994cf588be41","block_type":"box","text":"Reinvested Dividends.","page_number":139,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"f570f89c-e00b-4aa7-9b8e-8cf10281ed82","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":139,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"f5387a6d-d76a-40b0-a3c4-b1dc7fd62edf","block_type":"box","text":"reinvestment of dividends.","page_number":139,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"eedfa60f-f578-4b57-b799-d3602415c109","block_type":"box","text":"Right of Accumulation.","page_number":139,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"1487cf7f-ad70-4e7c-b713-01bb5df456a6","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":139,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"22a53899-de90-43f7-a258-f6cf3ddedc20","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":139,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"7d036f56-a268-4dd6-a698-5702ca360b7d","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":139,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"32bfbcd1-e37b-4004-ae02-cdb51c3d9d9d","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":139,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"d07d0a9a-1845-4a55-bc9d-c2bdb0edd9a5","block_type":"box","text":"existing shares of certain unlisted closed-end management investment companies sponsored and advised by","page_number":139,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"bf0a4e31-1051-4b37-a887-dfefd3c8a83a","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":139,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"71e1596f-a079-4a2b-ad4e-8cc59e4bae90","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":139,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"40a2f1e7-aeb4-42b8-9365-2f2e77516385","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":139,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"cafe3178-14bf-43cb-9d4f-beaf77976e70","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":139,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"dedb80c9-2490-471d-b405-395d5166c918","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must alert BlackRock to the existence of","page_number":139,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"b6d40650-8f6b-48ca-a21f-41bca33fb671","block_type":"box","text":"any previously purchased shares. Certain funds employ a “passive” management approach and attempt to match the","page_number":139,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"41a0e671-d768-442c-ab35-af8479495572","block_type":"box","text":"performance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":139,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"a32b1a62-eb0c-4d44-93c9-ebd606d938a9","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Short Obligations Fund generally are not subject to a sales","page_number":139,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"f76b6a21-0253-4598-9438-d5212e6689bf","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":139,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"22078fba-ed75-4803-98bc-7024b20fa87f","block_type":"box","text":"in the Index Funds and BlackRock Short Obligations Fund may be combined with the amount of an investor’s current","page_number":139,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"07aa5961-5c8b-4c39-a03f-73b529cdc904","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":139,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"cc9170b4-5d44-4941-a1d9-98337d682cd7","block_type":"box","text":"Letter of Intent.","page_number":139,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"c4a48d73-4546-43e1-ac98-28776af9b67e","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":139,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"e2ec463c-292c-4f22-b948-3bed0da5f8bc","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":139,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"27241b7d-727f-47a7-8adf-855a156f6236","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":139,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"545bece8-e94d-44be-9f4d-cdebb551a32a","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":139,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"3f956051-dfe9-4ca6-acf2-35dcee45bf54","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":139,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"0b90b0d2-bd31-4b91-87dd-5d92eadc472b","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":139,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"a6d6f014-eed0-4044-b1bd-db1797922808","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":139,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"7d41f265-3b21-4739-958a-ee8012fa5128","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":139,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"0cc55774-a713-4667-a30c-3bea4b2b11a1","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":139,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"6292244d-79be-456d-a55f-371520f9bfc1","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":139,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"754b851b-8aae-4215-9e81-c1fb57898cde","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":139,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"bcb037ef-8e9a-434c-94f4-9d2845aef8ec","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":139,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"8bfdb469-900f-4dcc-ace4-9fd8ba637346","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":139,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"f28eb633-9cf4-461a-b654-1a44e5b0240a","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":139,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"3d092f38-1608-461a-b3ad-9dce78731b5d","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":139,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"9a48436c-7609-4a02-afd1-441a0f2c7205","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":139,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"39020d04-1ac8-4c60-b775-71b69453fed7","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":139,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"77a7d6fa-f53d-4f2c-abda-961910a75819","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":139,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"8ccc7336-90d3-4091-b1d3-25b7fd03a10b","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":139,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"18d04687-9c16-49f4-b12d-0269932ff9eb","block_type":"box","text":"Placement Fees.","page_number":139,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"bc54b1d9-9ca1-4615-bd81-c4e071f482af","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":139,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"856a638a-699a-42cc-a3e5-b44c2a836a56","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":139,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"0c9b07ae-3f99-498f-a50b-e1b6305e92f8","block_type":"box","text":"II-101","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2f1aec68-2373-483e-b19d-7f9ff5725a37","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7e078a91-d014-465a-b556-5996cc7c08dd","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":140,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"bb5c3f46-220b-4d1d-a61a-3192de01b3c7","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"5edef42a-fccd-4c3f-93e7-6f30f03a8fc2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":140,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"786e51db-d63e-4ce8-8920-fba43d5acb29","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"848a1551-12cd-424f-aaef-0d465f4b8307","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"938ca841-0dcf-4820-8360-0f8b5baad268","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"7f5a306c-9099-46cf-afad-79c5bdced6b3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"d56e5798-0146-4300-a80b-8dcd7f9e6c8b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":140,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"0932edba-a840-49e1-bb98-8e0bcc6106e2","block_type":"box","text":"Portfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares","page_number":140,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"50e1a58d-20b4-499e-967e-8f778dad53fa","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":140,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"d37459d9-0f8b-4188-8901-4d7eadcbcc49","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":140,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"a8154073-5fae-43dd-8da8-93406f42d748","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"403c59f2-a672-47bd-8cc8-3e4cf673e385","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":140,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"85a03b1b-cc3a-4b42-a5bb-72516768e891","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"2e089d7e-34eb-4843-9122-2c1aa8271247","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"4e63c577-ceea-4f86-9401-5e7f4487d6a1","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"9805524b-5edd-4470-8109-beef7c8a2a2b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"3fb4107a-0fa7-4d84-b0fd-1d4943f4ca7f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":140,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"c73023d2-e3ec-4983-9058-7b7705924fe4","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Opportunities Fund of BlackRock Funds","page_number":140,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"84a67576-9627-4211-ad5c-8bb4742eda71","block_type":"box","text":"SM","page_number":140,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"cf7d766b-1224-4d8e-940e-fab679b142e9","block_type":"box","text":",","page_number":140,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"0dad7df2-abd8-4608-b367-1e043dd093f0","block_type":"box","text":"BlackRock High Yield Portfolio, BlackRock Core Bond Portfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":140,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"f218cc68-3222-47c0-a3a3-ff7be41c7e56","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":140,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"b2a18e54-14c4-4f3d-96f5-98ac70ea3c94","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"03eeb7eb-0624-498a-85ba-2afb37e91cb7","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"69e07e43-9a22-4975-9bf5-d13dd4a39628","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":140,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"1fa82492-486f-457f-a9ba-3f089f6c6e55","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"c5a2f113-a26a-48b9-a6e0-92298b9ab7b3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"e6f90495-c61d-4488-8784-e2193c28ce28","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"b7c36716-2235-430d-9663-8813ef1dac24","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"86adc95e-4e7f-460d-a00b-b4959df341db","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mortgage-Backed Securities Fund and BlackRock Impact","page_number":140,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"fadf13e2-4465-48df-bfe0-e55018a3ea06","block_type":"box","text":"Mortgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"a611f00b-3da2-442c-b099-4cb7d5c26475","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"e5f0f2bd-2d24-4856-a345-fa5404f1ee34","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"46a50be2-cdfa-4a87-b22a-bf8657a9ea9c","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"728eb909-a770-432e-98ef-09ee19c6511f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"1ff40866-a0ca-4f83-a7f3-c9ec725c030d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"a70c5f1e-5622-4ee0-82fd-258ecb3f9b62","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"82a72f0c-885f-41f1-9ad6-063d211c2039","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":140,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"1794892c-dfce-4755-a967-173edafcedb2","block_type":"box","text":"may be up to the following amounts:","page_number":140,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"873a7f62-09a0-404e-bee5-ff5b8a7075d0","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"194264b1-d93f-47b4-ae55-10f23f85356f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"786cc460-bb61-4a1d-a3f6-84e6e43cf1e5","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"c2357354-076c-4762-bbd3-62db3b63963d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"a0637294-dcc6-454f-9f2e-d5c1d6b6a188","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"2823cf57-e905-43c5-9cba-469833c18885","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"e9de44af-5220-4712-9e2f-bdc68bc59fae","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Portfolio of BlackRock Funds V, the","page_number":140,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"e35d6a2b-21a8-45f5-92ea-8314c8d58bbb","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"2e1ad7b9-a18b-4419-80b0-fffc144e713c","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"00a40993-5325-46e7-9cf5-b2f7f772856e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"4b2b86c9-c4dd-449b-99f0-c97dbbd643bc","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"53d4c2b3-d25e-4406-abc3-51d06fce69a5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":140,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"44761f4a-264f-4308-a171-8bfd0254e98a","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"f4f7d847-0aec-415e-ab77-ef34816e3ae6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":140,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"f579b17d-c53e-4fad-b767-7f2b25ecd217","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income","page_number":140,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"36ca9d45-a4e3-4f12-8b4d-aae400eca485","block_type":"box","text":"Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V, the","page_number":140,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"0c3f1239-68ef-47fe-a2c0-740f119eae55","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"6b64b8ba-bac2-4a67-aeff-41dcdeb76002","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"1b9154df-d4a6-435d-8881-63a4eec887c5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":140,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"d47636b9-1dd2-44aa-8f55-6138db0eefa5","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"44a061fa-7818-4515-89c1-c105bcad5b40","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"cd6f1a2c-e84e-4b67-b675-4744d46adde0","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"b7246673-41c2-4b03-bc92-13c59e81a679","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"9f8e1dcf-8284-4229-a39d-bf59cc1d76e0","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":140,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"eac246b4-4c28-4f21-9ffc-4f174bbf84cc","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":140,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"03833d77-7690-4061-a60d-45b96e093976","block_type":"box","text":"$250,000 and above . . . .","page_number":140,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"97f4e58b-0c32-469f-b92a-f6c90353ad6f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"1dd41340-751a-4894-bf13-d0821ff4f731","block_type":"box","text":"II-102","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"758971a7-dd4a-445b-a1ef-692daa92033f","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6166f821-e60e-4a5a-9795-18beb8183801","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":141,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"8d02235d-55c9-4713-9c7c-6a74e311f783","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":141,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"ed13d0df-7a98-4a99-b1d0-7ddae8cf704b","block_type":"box","text":"the following amounts:","page_number":141,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"16aa0ce3-a78f-4852-b64d-d26bc2ed9bf2","block_type":"box","text":"$100,000 and above . . . .","page_number":141,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"2e514356-f9f0-4de8-980e-9d99bd7857e4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"1d91dcdb-3d23-446e-9f89-35c34178a682","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":141,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"dc94bb55-4e8f-47d7-9221-022496eaa513","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":141,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"f2fa25af-dd31-4901-849e-ae9dc40bf7d6","block_type":"box","text":"$250,000 and above . . . .","page_number":141,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"c534a67a-29e1-4d4c-adaa-4c0312e0277d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"c40bea4f-a206-4e61-9c38-e8252a6d9f5d","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal","page_number":141,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"de9a3853-adaf-4c41-a278-3449991a478c","block_type":"box","text":"Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":141,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"dc23c65f-08ef-47c7-93c5-b9719f1efd04","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":141,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"bf1ec69e-2770-43d2-9ba3-c3452e4ec506","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":141,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"047764c7-29fd-4035-928e-71e62650da4d","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":141,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"e370acee-9c68-4051-aef2-b19b1ad1387b","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"50a0e80b-e822-4770-ac3a-92d85354d850","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":141,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"c215b51b-801a-4acf-8bd5-6833451a40af","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"aa503712-408c-4f31-8531-7af97096f614","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":141,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"092da41f-f5dd-4e5b-a37a-ae6129473b14","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"19773bb5-2288-4b35-8fab-9e5ee273e2cc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"3aa1a8a2-88bb-451d-9e5f-93000cd37cf4","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Portfolio (for shares purchased on or after","page_number":141,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"6627ae67-0dc5-49f8-b32e-f6ffed91705f","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares purchased on or after July 1, 2020) of","page_number":141,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"7553f413-0c5f-46e9-a0ac-58bb3c12867f","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":141,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"e58a01c0-d657-41ae-a0c0-27bef2a2c6e8","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":141,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"23ac208a-7403-42db-9b69-fabf649f7be8","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"23844edd-2431-45b7-b8e7-342b4eae2ac0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":141,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"27d9bac9-6db5-40a2-a86d-9410abe92949","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"aabc08dd-a2db-4446-bc99-5315d33423fc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":141,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"f4276f6c-055f-4ad4-9da1-10e359ec79db","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"6d9ac72d-e091-4a3e-b878-0a1d51fa8334","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"5d1a088f-e714-41da-9a93-ac662d8d7161","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":141,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"9f1cc749-1bf3-47c6-b308-5b7ebf2d5fb5","block_type":"box","text":"®","page_number":141,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"db133937-0c88-4983-82e8-91e3a1b972d4","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":141,"box":{"x":513,"y":463,"width":264,"height":10}},{"id":"53f32118-2045-477a-b2b7-71468ca4c2fb","block_type":"box","text":"®","page_number":141,"box":{"x":778,"y":463,"width":6,"height":5}},{"id":"7d5ed78d-5906-44bc-b5e5-f8781ec0cf71","block_type":"box","text":"Index 2035","page_number":141,"box":{"x":791,"y":463,"width":79,"height":9}},{"id":"8ffc608b-f583-4bdc-a2cc-a3823b575384","block_type":"box","text":"Fund, BlackRock LifePath","page_number":141,"box":{"x":70,"y":478,"width":177,"height":11}},{"id":"84675989-ab44-4f7d-8a1d-63fdd7ce2874","block_type":"box","text":"®","page_number":141,"box":{"x":249,"y":478,"width":6,"height":5}},{"id":"df0cce38-2cbb-4ff1-92cc-a1b133cb32ab","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":141,"box":{"x":261,"y":478,"width":265,"height":11}},{"id":"4f438904-93c0-442b-80a5-c38c520ccceb","block_type":"box","text":"®","page_number":141,"box":{"x":527,"y":478,"width":6,"height":5}},{"id":"12226547-2024-494e-a3fc-55053e182892","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":141,"box":{"x":539,"y":478,"width":265,"height":11}},{"id":"c6e3adf6-fe6d-46d1-9f49-ed3dfeb3a98b","block_type":"box","text":"®","page_number":141,"box":{"x":805,"y":478,"width":6,"height":5}},{"id":"afbf8e30-faa6-4c33-a003-8b815353d147","block_type":"box","text":"Index 2050","page_number":141,"box":{"x":817,"y":478,"width":80,"height":9}},{"id":"b24701d2-5eea-4d02-820f-0ba665128ce4","block_type":"box","text":"Fund, BlackRock LifePath","page_number":141,"box":{"x":70,"y":493,"width":177,"height":11}},{"id":"109385df-2fc3-47ca-bffc-2dc24a1d92e8","block_type":"box","text":"®","page_number":141,"box":{"x":248,"y":494,"width":6,"height":4}},{"id":"7aa768e5-38fc-464e-8169-f8a0ba49c17a","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":141,"box":{"x":261,"y":493,"width":263,"height":11}},{"id":"c8b2269b-895e-4979-b5da-3b3598e10d61","block_type":"box","text":"®","page_number":141,"box":{"x":526,"y":494,"width":6,"height":4}},{"id":"b2dd35d2-26db-4975-914a-f37079b70dc5","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":141,"box":{"x":538,"y":493,"width":264,"height":11}},{"id":"976eee1b-5961-40e5-851b-3f46cf028d8e","block_type":"box","text":"®","page_number":141,"box":{"x":803,"y":494,"width":6,"height":4}},{"id":"8caafabd-d84e-4e3c-8dcb-ca0c30264ff4","block_type":"box","text":"Index 2065","page_number":141,"box":{"x":815,"y":493,"width":80,"height":9}},{"id":"3811c1a0-14e7-41fe-97d3-65ed61576129","block_type":"box","text":"Fund, BlackRock LifePath","page_number":141,"box":{"x":70,"y":508,"width":177,"height":11}},{"id":"72744f10-7d7b-44c7-8687-0439a94890d5","block_type":"box","text":"®","page_number":141,"box":{"x":248,"y":509,"width":6,"height":4}},{"id":"7db5182b-a5be-4af0-9f0c-73f5f2e07969","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":141,"box":{"x":261,"y":508,"width":290,"height":9}},{"id":"ab8f2f6a-4600-4d0d-96e9-ddfcbeb5b6a2","block_type":"box","text":"®","page_number":141,"box":{"x":552,"y":509,"width":6,"height":4}},{"id":"88db9472-e35f-4377-a8f9-2f5b5adeb73c","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":141,"box":{"x":564,"y":508,"width":324,"height":11}},{"id":"76f70d75-bf08-4372-b6f5-ae575fce87ef","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":141,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"dbf09df6-bef5-47dd-aa1f-359395e4d27f","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":141,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"2e140abf-81b6-4aa6-b0e9-3ba9be838c41","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":141,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"d8a3bf84-02d1-4eed-9c88-aa2003bcfe29","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":141,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"bc6bfc3f-60c7-4276-b5a7-7d46865b0309","block_type":"box","text":"SM","page_number":141,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"b312bfd9-9490-40d1-aee6-b8ac6e3dd58e","block_type":"box","text":", the placement","page_number":141,"box":{"x":773,"y":575,"width":110,"height":11}},{"id":"8eaa6471-b5db-433e-8eee-e5a5aad167d8","block_type":"box","text":"fees may be up to the following amounts:","page_number":141,"box":{"x":68,"y":590,"width":294,"height":11}},{"id":"09ca623a-428b-49e7-bab8-4764adb65b14","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":141,"box":{"x":167,"y":617,"width":206,"height":11}},{"id":"465ba234-3671-4687-a059-3de0253be8c5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":141,"box":{"x":380,"y":618,"width":443,"height":9}},{"id":"775ad61d-bb2c-490f-aab2-7355d195d923","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":141,"box":{"x":101,"y":642,"width":787,"height":11}},{"id":"af046f8e-60af-4c16-894b-885a8ab47b92","block_type":"box","text":"Russell 2000 Small-Cap Index Fund of BlackRock Index Funds, Inc. and iShares S&P 500 Index Fund and iShares","page_number":141,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"9d84d3ed-218d-459c-b7f1-98ead83ccbf9","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":141,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"03a12867-bb18-476e-9f82-b3e82bc938ef","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":141,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"b45b1f5b-700b-4a5f-9776-768f9774c07b","block_type":"box","text":"example, a sale of $4 million worth of Investor A Shares of BlackRock Impact Mortgage Fund of BlackRock Funds V","page_number":141,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"c5a1d49f-7f14-4f33-a73b-7757843c34ca","block_type":"box","text":"will result in a placement fee of up to 0.50% on the first $3 million and a placement fee of 0.25% on the final","page_number":141,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"089fe331-881e-417f-b92e-92035b1fceda","block_type":"box","text":"$1 million).","page_number":141,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"16b44dec-0cae-40e8-88f7-b5f5ddf23b6b","block_type":"box","text":"Other.","page_number":141,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"f989d72e-b7eb-4ebb-b23c-1e0b430f67ef","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":141,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"f4fc882e-a978-42f3-a72b-390a7234fb67","block_type":"box","text":"(a) certain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":141,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"155e58ef-7d00-4627-b80a-54d608f64248","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through certain employer","page_number":141,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"6bd3341b-70aa-4dd0-ac42-aeeab804b095","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":141,"box":{"x":69,"y":808,"width":825,"height":11}},{"id":"2caeaf95-3ce0-4d7e-a239-da017b473035","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":141,"box":{"x":68,"y":823,"width":773,"height":11}},{"id":"a63f1f4d-0e12-4a4b-b7e1-463d182d39fb","block_type":"box","text":"proceeds are contributed to a BlackRock IRA through an account directly with the Fund; or purchases by IRA programs","page_number":141,"box":{"x":70,"y":839,"width":838,"height":11}},{"id":"176272b5-c0e2-47fb-b0c8-1c4f294cf35e","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":141,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"d22aef5f-1611-4862-916a-8c63eda77f32","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":141,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"8c77d859-fdea-49bd-87ef-9a9dfa7f4318","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust departments exercising","page_number":141,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"15c6cd2a-3c35-48aa-abed-fe9f1e51e02b","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons participating in a","page_number":141,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"1a616bc6-699f-4efe-ada1-ff0def829e5d","block_type":"box","text":"II-103","page_number":141,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"361655b3-b188-4d8d-b68a-7cff2e3c5b38","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8c72f85d-15a1-41f7-8e5d-ac4e652459fd","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":142,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"fb55c715-e469-4a11-bea0-466ee8181e00","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":142,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"8bb7b8d8-6903-44f9-bfd1-ff08a6b738ae","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":142,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"66c3b673-fc74-4378-85be-5c1c04bdb52d","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":142,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"685d1017-adb2-4209-b97b-9ad5bdc38058","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":142,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"fc0657b3-482f-4e2e-8803-854cca17812e","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":142,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"9b2f4a70-19dd-4874-a1d0-7be30b9b4a98","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":142,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"a6fce69d-fe72-4757-8d70-d3f00b1a2cfd","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":142,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"6d1783ce-c779-4039-9808-eec7bc0a6c20","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":142,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"4fcd4dd7-09c4-46d6-a524-9eb372628593","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":142,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"ac2bd4d6-36cb-4873-9048-fde974b373c2","block_type":"box","text":"including: (a) officers, directors and partners; (b) employees and retirees; (c) employees or registered representatives","page_number":142,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"72a5d93c-4465-47a1-91c1-ce92a3fd841b","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":142,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"87c0d512-c83d-482d-bf3c-6bafa6741c30","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":142,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"2dbc0b33-97cc-4bf9-a9fa-73778eeda6c3","block_type":"box","text":"spouse or domestic partner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":142,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"bbc614a6-38e4-4945-8dcb-e519dae80b42","block_type":"box","text":"plan for any of the persons set forth in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":142,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"abf97663-962b-4685-b49d-8b755e8881d4","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":142,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"e059567a-7335-4533-b987-0a79bfbc49a1","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":142,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"0dfff452-a1bb-40d8-a928-9eb45bf51543","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":142,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"c210ad26-2b89-48c6-89a3-21601f27f23d","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":142,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"319058b3-cf50-4423-915b-ae340be63187","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":142,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"d1c439db-426a-4477-aab9-20e57850f8fe","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":142,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"84215077-7b3f-4830-a8ef-5a82153d7f6c","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset","page_number":142,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"fdef5f45-a43a-4bd1-b761-56e482e5c58d","block_type":"box","text":"Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":142,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"f342b226-53bc-4781-9b49-667fd6684c07","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":142,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"6b888ab8-15b7-4687-a0c8-2c6968ed5afe","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni","page_number":142,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"b7727c62-992d-400a-8e72-db4d724673a3","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock","page_number":142,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"3ef38ae2-0dbc-48ce-b9de-6a8c7ddc1942","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series","page_number":142,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"5ae35576-58b3-48ed-b73a-c14a72da89f4","block_type":"box","text":"Trust, BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":142,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"a858d883-0ce1-449c-b644-b430593357da","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":142,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"f4db6ff4-7f42-4198-bf21-f9cf86ec5da2","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock","page_number":142,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"50535407-e0b5-4069-afa2-da23b89c45b7","block_type":"box","text":"Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of","page_number":142,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"40916d71-5e34-4b89-b4b9-39155f24160d","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":142,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"55094d09-348d-4fda-97d7-8867b8b1e9f6","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":142,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"b45f27ac-4c56-4d46-9a00-b68b13923e3a","block_type":"box","text":"shorter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":142,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"d3e06360-23c3-412d-99c3-777f5383c90f","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to certain redemptions of Investor A Shares of the Index","page_number":142,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"53b315b2-71f2-46cb-b007-444f96543648","block_type":"box","text":"Funds and BlackRock Short Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":142,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"c00c8f81-2508-41cd-88b7-b5b58efd0bcf","block_type":"box","text":"portfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":142,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"7e863645-8fa8-4650-9f31-1a2f493050d1","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Portfolio”) as part of an investment of $1,000,000 (lesser amounts may","page_number":142,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"45521419-7c42-47ca-90d7-c09435adf4db","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Portfolio) or more. The Investor A Shares deferred sales","page_number":142,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"f49d738c-bcc0-4c6c-a0e0-b796995ccf34","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":142,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"7f9ab6ce-2ed2-4111-8abb-af880c6ed66e","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply depending","page_number":142,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"9441672a-2b07-40be-9e25-3884c267c9c3","block_type":"box","text":"on the Investor A Load-Waived BlackRock Portfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":142,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"9eb3828a-9777-4097-9536-ec6e613a42d2","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shorter holding","page_number":142,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"8332333c-f279-4be1-abd3-7d17ea022796","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":142,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"137ef4b4-ab0d-4aec-af1f-7d8549411f2a","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Short Obligations Fund).","page_number":142,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"efef02f0-af06-4387-9148-78267cb15427","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":142,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"1a8443fd-aeeb-4aba-b8d7-cc809ceab878","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored retirement plans","page_number":142,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"b7bfa768-2f3d-4c7d-9aa4-7fea486ffb46","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":142,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"a0ffae84-2a24-483d-bcf5-a75cf8c572f3","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":142,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"38cf6ce7-e503-4b85-8f59-b79877dfafcc","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":142,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"0c54390b-7ae0-4476-9e0d-666827c6f5b4","block_type":"box","text":"certain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":142,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"821be3e4-af21-41d0-96da-aba755a2af2f","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the","page_number":142,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"47e0f240-27eb-4935-a1b3-789b22bdae06","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":142,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"76836463-ca30-4ea8-b46e-01b0b90ba466","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":142,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"17ae8ad4-e8a1-47e3-bc6e-00eff7c6ae9e","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":142,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"26f30408-fd40-4388-9bf2-cf9f343c5310","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":142,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"b4c5c3c8-ff81-4393-94a6-7b205ce6e0b2","block_type":"box","text":"II-104","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"61e74256-ca8c-4ccf-9092-862c0c701e08","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"16ec895f-8b21-417f-98fa-60f4163a88ec","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":143,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"c5b8e63d-2490-4876-ac0a-e4af12cc06c3","block_type":"box","text":"the absolute discretion of a Fund.","page_number":143,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"0815108b-e6d5-4ca7-8d79-25884362f9a3","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":143,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"d17a0457-9359-43dd-8f79-29c5128f95b1","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":143,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"7d2bd89b-851d-42db-9406-ab414e12f961","block_type":"box","text":"BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income Portfolio and BlackRock Managed Income","page_number":143,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"75f57c5f-bd3d-425e-9f70-6888aec281ba","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":143,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"c1b4468c-e4d6-440e-803c-65e03fbf9c93","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":143,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"5f688103-9d85-418d-bf30-3a6bb6aaa254","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":143,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"7069884d-39af-47cc-b5f4-b0ef60b38b7f","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":143,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"d20f0289-d22b-470a-9ea3-85f3304f45fa","block_type":"box","text":"Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":143,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"f254b7ff-4b4e-4974-a7dc-a70d14cbb4f7","block_type":"box","text":"Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":143,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"95797791-00c1-4f60-88e2-e8be4fe75140","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":143,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"312bfd0b-9872-4365-ad1d-2921dfac81b9","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock","page_number":143,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"6e2d447d-66cd-4864-a12e-ab6601a7db21","block_type":"box","text":"Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or","page_number":143,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"39cf30e2-9fcc-4a27-be79-2598155cb943","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":143,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"ec284733-a237-4c11-82cd-df7ac214c2d1","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":143,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"79947896-a461-4ab8-8e23-051a631c2b07","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":143,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"b0b027a3-6764-495a-b74f-a2e66c7206d0","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":143,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"39fc8529-c732-45ab-a23e-be638989d038","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":143,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"1de18d86-0878-4a02-b41d-1ea1e462b498","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":143,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"8e6f2f55-ac40-482a-bcd1-17e24b51dc4a","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":143,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"df0dc564-2722-4d10-a72c-af45ba093bc1","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":143,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"6c41b9c0-9018-45b0-846a-8bd7bb042d55","block_type":"box","text":"public or private investment company.","page_number":143,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"615630df-c4ec-4962-af68-6968f9919281","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":143,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"19370f2b-2b48-404a-81d4-6990c84a0422","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":143,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"3de6c2fe-ff9a-45c4-83e8-d3b31f3a8eb3","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers, selected securities dealers","page_number":143,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"1652ac3f-5a9b-4ae4-a619-7cb47cf4ed8f","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":143,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"ba7cb06f-258b-42f6-bc05-e7b699393c70","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":143,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"4e552279-1a58-4ab4-b3bf-c0fcb2af0295","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncertain","page_number":143,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"30c842aa-b435-4958-a5db-49771b6a201e","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":143,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"27d1f56e-a2ce-4ef9-bd75-f6adfaa9146e","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":143,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"d25d5a90-c804-44ef-a923-c65812b31aad","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":143,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"2e7ce87e-8960-4b64-b425-abbbbd5b4b4b","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":143,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"ffb54984-e278-4991-9085-8b957bb6aadf","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":143,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"ab80a6ba-4611-4ebc-a299-180ce27558e5","block_type":"box","text":"intermediary associated with the account.","page_number":143,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"542d8779-7477-4202-9196-ca19b09e4105","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":143,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"b9b4bcdb-5f29-403d-8118-4253d5c92592","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for the","page_number":143,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"8e26e701-d4ea-4a5f-b52b-baebbcb3ddd4","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":143,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"6b58102f-56e9-415e-a141-32d7170ad297","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":143,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"9c981f65-b968-4877-8ea5-7069f52bf853","block_type":"box","text":"CDSC shares.","page_number":143,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"0859f73b-8a61-4e62-b228-5093d4421b31","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":143,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"a5f37e26-945e-4148-b239-379567ee0d43","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":143,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"f8672044-3b1f-4f20-a62a-e574d27b333c","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":143,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"907c101b-8f6b-449f-985a-004d4acdda19","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":143,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"24e46b4e-9045-4176-b73a-a155ba97bba7","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":143,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"e02f6f9a-ef78-4ee8-a026-d0c43381084a","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":143,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"c9dc3f4a-ce75-446a-8a3d-c31d6e4cdd75","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":143,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"3da7b47c-c736-4287-a440-b70d7cfa2e9b","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":143,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"65439997-4e72-47e0-ac2a-20e1ce616a17","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":143,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"d9cf5a82-3213-4f9f-96f5-20593004816f","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":143,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"726f1370-6d93-47a5-a755-ba68a2a1f236","block_type":"box","text":"connection with sales of Investor C Shares to certain employer-sponsored retirement plans sponsored by the Fund,","page_number":143,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"952bb010-32a6-46bc-931f-18259905757f","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":143,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"4f45c3cc-7a0f-425b-9ab1-7978a4dedeff","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":143,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"d1f5dd0d-c935-4b04-949b-cbbdabcdbcd1","block_type":"box","text":"II-105","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"121055e4-ff82-4992-b7fa-d7cfbc22e7cf","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dc488032-2620-4641-b7f9-4bf58ff49c6d","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":144,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"d9f66a9a-c932-4156-bfa8-cf628c14a3a8","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":144,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"f3aa9e79-62b9-421d-a059-44a58b7e5074","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":144,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"8a1e9c5a-c506-4821-bc5b-306b5474914a","block_type":"box","text":"Investor C Shares held for approximately eight years will be converted into Investor A Shares, as set forth in each","page_number":144,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"5d492908-7047-4ac6-82a0-899c426b7c92","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":144,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"b4cde5e5-1689-40fc-a9e5-ed0c7e229e40","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted to","page_number":144,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"b7226f4e-ff6c-476a-a3d1-a0639dc59116","block_type":"box","text":"Investor A Shares.","page_number":144,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"16555839-6912-44e1-9019-32df434c7a6c","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":144,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"675c3422-4950-45a2-9b61-fd7a94e83bf6","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":144,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"afcb6680-83b7-4507-a729-300e1a5f080f","block_type":"box","text":"of each Fund will convert automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":144,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"cad4a5b7-7cbf-485a-ab82-28824983d1f6","block_type":"box","text":"Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":144,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"6d0d7ae6-c9fb-43cd-bd16-8588538d5245","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":144,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"c661b013-9690-4633-ad2a-dac8075cdf6c","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":144,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"30bf0a81-2005-4929-83bf-c70b820bab7a","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":144,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"9fbf5a42-d696-4d87-b31c-53962dce9fa1","block_type":"box","text":"certain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":144,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"611b425c-f421-4333-bacc-633dd34a9035","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":144,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"7b4cece2-f37b-4ff8-9b42-06ec9600dd29","block_type":"box","text":"Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after","page_number":144,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"bfd9a79f-16a3-467b-a3fd-36d8a06d3edc","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":144,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"cafc23df-3e69-4b14-aaf5-fa6d64c8e7f9","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":144,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"a7359b81-c54f-4839-a42d-99878c9b70e0","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":144,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"83c38060-a979-41e8-8d57-98a3450ea3d7","block_type":"box","text":"any such shares will convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":144,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"02df90d7-107a-444b-b18c-796cb6512d9d","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":144,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"14a186df-a4e2-4837-9f9e-7dfdf0860ab9","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted into Investor A","page_number":144,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"dabae492-b3b3-41b1-8d55-ec7bce1d3cce","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":144,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"7082fe43-3ed3-43e7-b451-64ec4e342b0c","block_type":"box","text":"“Investor C Conversions”).","page_number":144,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"f91c6ff8-dbdc-44b0-859b-d9e46bfff47f","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":144,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"f31c06be-076d-4c55-a6d0-c55f4613f0c8","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":144,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"668bd9c8-b7dd-4cd3-8153-3e9b7aeca24b","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":144,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"7555d682-cabc-4695-bb2d-578eea85dc54","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":144,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"12129f00-d9d9-49d6-a6e2-dd1c156e3557","block_type":"box","text":"Shares will also convert automatically to Investor A Shares, as set forth in each Fund’s Prospectus. The Investor C","page_number":144,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"ad632b8e-19ed-4684-b8cb-342f2bce77c3","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":144,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"a70c68a2-a7e0-4f68-b7e3-a2660d225c4b","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":144,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"49eb20ff-9604-4120-ad2d-6a4c970a3e2e","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":144,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"a732f210-d33a-4e5b-8e91-849b4de4614f","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":144,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"de314ab1-a39a-4bd6-8d2e-3d46ab523ad4","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":144,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"5800b3db-7545-4d66-b7c0-abea772335c8","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":144,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"21455dcb-5ed0-4abc-9117-e25e789a79c7","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":144,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"4c89ea57-8404-4224-b545-b06cd52b5380","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":144,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"91c2e7d9-6023-4320-844a-19768483e7b3","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":144,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"873b4128-1e38-4d36-89a0-d3f71d45a512","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":144,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"11d9c55c-a2a3-4f50-b466-ca0cd62daf36","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":144,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"d544c49a-93e5-4055-8662-9b0115c6e09c","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":144,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"ed7dfa80-4804-4f6e-a079-d49d2308ddeb","block_type":"box","text":"redemption.","page_number":144,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"b44e30ee-f6d6-4b95-879b-d6a06a16a7fb","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":144,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"77d9b779-5fb8-4d17-b090-10fe03ef10a0","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":144,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"934a80a8-0ac2-4871-bcf5-c3ad36fabc42","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":144,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"eba9d0af-fb68-49f9-add1-16a7a9144056","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":144,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"2bbd95aa-185f-4d16-8494-72be101a7563","block_type":"box","text":"purchased through certain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":144,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"4e74c0c1-e0ed-49d4-845e-05369d7e0e12","block_type":"box","text":"certain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":144,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"df495293-2e32-4bf2-95f1-846a15afe8ff","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":144,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"71071697-b274-48a7-b994-2668dab55a64","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain","page_number":144,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"eb473d78-65c6-499d-95c6-f42d7c42e2d2","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":144,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"4146b4ad-2d94-462c-bc9f-68eb333b0d17","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":144,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"a922271a-3ed7-4ed8-b2eb-fb7442d0a57e","block_type":"box","text":"II-106","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"29e01837-8e3b-427d-b075-cd403403205d","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9cf02c2e-b338-4309-83c7-9d8fc72d3a13","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":145,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"98e54109-eb7f-4cd2-b803-1331ea1e6b90","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":145,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"40f59ed9-96cc-4235-8a63-94e4c1f6f290","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":145,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"f436b302-2cac-4af7-be3c-ea4cb1e68742","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":145,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"1ced6798-432d-4e65-a059-2932a26bd852","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":145,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"272fe98f-b9a1-4ff9-9fc9-ed8085a6b0f8","block_type":"box","text":"limitations set forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":145,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"0d454a6e-1861-4020-a465-1b1ba846b229","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":145,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"d8055020-ea1a-4dff-9215-fbeb25b47a06","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":145,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"e50d20fc-09fc-4616-b190-e48d4545a4b3","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":145,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"697a5367-bbac-4075-8a5d-9e7ffa392aa8","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain financial","page_number":145,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"905aad95-29ed-4663-8915-3dc5c6a2317a","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":145,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"930c6fcc-921b-455d-ae84-d6ae27e197f8","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":145,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"10d402a3-c9ad-493d-9b97-6666d40c66af","block_type":"box","text":"Class R Shares","page_number":145,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"0012ad44-f2c3-4b57-b791-a0cf2764926d","block_type":"box","text":"Certain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":145,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"c18dd395-c7f3-462c-8aba-c094d7ed1f6d","block_type":"box","text":"available only to certain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":145,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"a04b23a0-c66b-4aa5-8212-b52aaf30e40d","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":145,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"f3988f9c-1246-4dfc-8fe2-286705f18b41","block_type":"box","text":"0.25% per year. Distribution fees are used to support the Fund’s marketing and distribution efforts, such as","page_number":145,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"b2cf2fee-299c-45cd-bb43-fcf714e1b92d","block_type":"box","text":"compensating financial advisers and other financial intermediaries, advertising and promotion. Service fees are used","page_number":145,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"abc9072b-ee57-4bd0-9c34-63d828f606ba","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":145,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"61c6b4f6-dc08-4c8a-96c1-5b53417d7782","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":145,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"cfb3a4c4-d4d7-4f5a-80e7-1919a2a505e2","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":145,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"7b67d01f-b23a-49f7-823e-3ee84e622e10","block_type":"box","text":"Class K Shares","page_number":145,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"f6c853d2-5159-470c-bc8b-f398ac62a632","block_type":"box","text":"Certain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":145,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"135cd12f-8d87-4f70-8151-b59d7b0fddf5","block_type":"box","text":"only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored","page_number":145,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"99ed2535-e9f7-4ec9-8538-52591dff26b7","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":145,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"04b8a3ec-b90e-4e87-90d2-9dd33e4b3d27","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":145,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"2941aab3-7f7c-4f23-8bb4-1b7ad8b0a0e5","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":145,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"a60ad1c3-be20-4771-9ed7-4227d37b3e1e","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":145,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"6fb4cf9f-cd5c-43f0-afa4-8e2cebf8e71b","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":145,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"3cc7674c-1807-4b51-995d-dcf08974af67","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":145,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"997ca1f2-c65e-4830-aa61-e544a663e547","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":145,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"4a092ef8-978e-4f98-9290-e18d9b94c8b4","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":145,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"82cecd72-88f8-480a-b66d-1da126fa3142","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":145,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"9fc6bc3a-cdbc-42be-96ea-cbd3e22ad64f","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":145,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"d9d44995-e60c-4ff9-9be9-5903703d1534","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":145,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"a5b31654-037c-4f9e-b76b-46e13d668b45","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":145,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"061e2748-61a4-4a54-8549-f2df5b3641f8","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":145,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"e351f492-3aaf-4728-8bb5-229dabbe79ea","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":145,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"54c7673c-1430-4d40-b39f-a8fb097f1a4c","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":145,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"acd21a41-8e87-4fc3-a8f0-d42b4380b3c7","block_type":"box","text":"distribution and marketing agreement.","page_number":145,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"5bc570e4-ad06-4123-ae1d-20fd25ae7f9c","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":145,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"9c25fed9-fa3d-4b5b-bf8f-75dc88bbac70","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":145,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"401f4727-e075-47aa-9c08-df7edd2f145c","block_type":"box","text":"Eligible individuals who would like to convert existing holdings to Class K Shares must contact BlackRock.","page_number":145,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"ed31f8d2-8390-4420-8941-20935704223d","block_type":"box","text":"Class G Shares","page_number":145,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"837a3ce3-3a6b-4125-8b39-9fba72eab875","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":145,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"110d2d3f-3f1d-4b5e-a049-c553f5140563","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":145,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"c8c8c830-4e0b-49f2-bf28-c5f0cf47d026","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":145,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"e203f836-7db4-4cfa-bb60-cc0282d66c77","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":145,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"9fb5d5e3-164d-4008-991e-9ab5bd7e6967","block_type":"box","text":"eligibility requirements.","page_number":145,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"ddec0cd0-a300-41c8-9b01-fac6f22df1c4","block_type":"box","text":"II-107","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"efe475ec-37e1-438d-a530-5d3ebbfa81cb","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5f5f3ecb-1bbc-486f-9670-33dc3afb1c2f","block_type":"box","text":"Service Shares","page_number":146,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"36468772-a376-4d2d-8652-29b1f7712b46","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain financial","page_number":146,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"208f9c46-7a49-41e7-890d-b79c4e3ddd3e","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain persons who were","page_number":146,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"a286a30e-3105-4370-9714-dbb9a20891ea","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":146,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"2b15b56d-ccdf-47bc-a0ff-6f2844786799","block_type":"box","text":"®","page_number":146,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"9bcbe5e5-2692-44d2-a814-56c53ec9731a","block_type":"box","text":"Fund in 1996; and","page_number":146,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"e877d938-94fd-4ad0-9752-aba1f5a7b9e6","block_type":"box","text":"(iii) participants in the Capital Directions","page_number":146,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"d10a9044-bb3b-46fd-9437-ae34e837aacc","block_type":"box","text":"SM","page_number":146,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"43cee5a4-539b-43fd-a03b-8fea1635c82a","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":146,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"0fa19b58-cdea-4c24-9c1e-f4b53cccb9aa","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set forth in the applicable Fund’s Prospectus.","page_number":146,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"3f1a43fa-c9e2-4f22-ba2c-1ead39cc7316","block_type":"box","text":"BlackRock Shares","page_number":146,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"5761780e-fc65-4a56-b5fd-962e3ce32531","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares are","page_number":146,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"55a0aa96-6663-44ca-92f0-d2c9206648eb","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and certain","page_number":146,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"882e01b7-dbca-4930-84e3-5c71549d017d","block_type":"box","text":"fee-based programs.","page_number":146,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"0a66688a-1f77-4b23-8732-fa3a3d2d0ccc","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":146,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"85245a88-a4ca-4732-b07b-ce270f704bfe","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":146,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"78940e08-520f-494a-843e-75e7efb5820d","block_type":"box","text":"respect to certain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":146,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"9b535f81-efb3-47a7-9b5f-a2eca490a17e","block_type":"box","text":"shareholder servicing fees for certain services provided to its shareholders.","page_number":146,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"6d6a73cd-4281-45ca-b379-8cc29b75d247","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":146,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"aafa0a95-b403-4a3d-b54f-0d18b3ce9753","block_type":"box","text":"BlackRock, fees for distribution and sales support services with respect to Investor A, Investor A1, Investor C,","page_number":146,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"34c52842-0661-4bb2-954c-a69649083d10","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described further below, only Investor C and Class R Shares","page_number":146,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"ab4da649-610a-4ead-8808-765e1df83d33","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":146,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"be09dfa2-1aaf-478d-b256-a830a5914503","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":146,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"dd7e359d-5e6e-4aab-a303-ea480c7b3c86","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate efforts to effect sales of the shares, but it is","page_number":146,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"3b0c82a3-a4a4-4432-8c84-00264f6e6600","block_type":"box","text":"not obligated to sell any particular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":146,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"8d27ae89-9e1c-4d3a-a93a-e449d7531591","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":146,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"4a50a234-4feb-4d4c-8060-4acde488a3a1","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":146,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"855d284a-0b38-450d-aeb8-ad9e16940110","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":146,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"bfb4570f-6a54-448e-8a0c-6a06001a80c0","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":146,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"799286f2-9788-4c0f-acbf-8526b04390a2","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for certain support services rendered by Service Organizations to","page_number":146,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"e05f9eed-24e4-446e-9006-db51565d02cb","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":146,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"27f82b39-5293-40a3-a846-a1aa048820c2","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":146,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"bd2d07da-cda2-4838-8a37-c789b6702c11","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":146,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"f1d36ce5-b834-4eaf-be11-9d0293b842d9","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services, which include,","page_number":146,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"07f1c2fd-15be-44a0-9b68-a04310e367da","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":146,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"1f5b199a-30dc-4a71-ab42-986dd1b0364d","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and certain other matters","page_number":146,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"770cdc53-7ad0-47bc-aa38-89f8047e5176","block_type":"box","text":"pertaining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":146,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"b0d22bb5-e5fe-4b77-b787-7a096134af70","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":146,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"38705a93-9dd3-454a-959a-2cf7f4e7d1f6","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":146,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"fb9a05cc-b835-45e4-b647-5cd5cb50ae05","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":146,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"7f383f4d-3b92-49aa-a45b-24d3882e5895","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":146,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"d938e1fd-ade0-469e-91b5-3579e39251b3","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":146,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"7f9fdf01-ecbc-463a-93ce-b244471f48ba","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":146,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"df04020a-4fe8-48a9-a647-98c0a663af55","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":146,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"b38ff594-5f07-4c51-8165-cf1ecc428489","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quarterly.","page_number":146,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"b831541d-f274-4707-9da7-f784757ee1b9","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":146,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"2b231f6d-66ba-4a4d-b2d7-73747c7ea885","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":146,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"31e47183-06cc-47c3-9ab0-88034508d956","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":146,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"cc713649-45aa-4083-b70a-3a2a40f208f1","block_type":"box","text":"expenses, advertising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":146,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"daa55b88-ded8-4b46-95da-c8c0b9e4d286","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":146,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"23af970b-ba50-4263-97c5-2e0e5f7d36ff","block_type":"box","text":"compensation for selling different classes of shares.","page_number":146,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"c4ba2557-47cc-451d-8008-f8ba0d51eaf7","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":146,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"c48c6f89-5d96-43bc-a6a9-7361dfe06fd3","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":146,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"467ceb09-a17a-4247-a7c0-9764f3a05596","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":146,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"37c4fc19-ba09-49e3-ae78-a355bd44b671","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":146,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"84e909bc-54ff-4947-9006-b7588a65f820","block_type":"box","text":"II-108","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"80149ae6-768d-4e01-8644-d4a2b806514f","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c9a5682d-fff6-4371-8bed-9b6357c44893","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quarterly","page_number":147,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"f6cf4212-6080-47a6-b915-86b08c66b049","block_type":"box","text":"reports regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":147,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"df15e9ac-6aac-4513-949a-d11cfe5aaf39","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":147,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"df357754-0a1e-4d08-a510-01672818a1ff","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":147,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"615c1651-d507-4223-8aa0-dc9ea05b48ea","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":147,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"f9e68b95-234c-4f40-9e69-91303ffaf292","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":147,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"44d07ef6-6119-4bca-9431-064806d7436a","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":147,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"91184ca5-ba36-4f7a-a28c-f9634f953a0a","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":147,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"938b88ec-9ac2-41c4-972f-e27d27e3fdc6","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":147,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"c0855b1d-0593-4f04-936a-72b13803e20f","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":147,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"40375d6e-a121-4830-8280-eb28b8c901f5","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":147,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"e18b5c78-7cf0-4941-9867-005923c03065","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":147,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"3dfa6154-e912-4e16-9d86-b9828d1df87f","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":147,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"dd0d731e-e0c7-4e14-a6a7-989abfd79316","block_type":"box","text":"Directors. Rule 12b-1 further requires that each Fund preserve copies of each Plan and any report made pursuant to","page_number":147,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"694c8278-571c-4eea-a02b-5a1c31cc76bf","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such report, the first two years in an","page_number":147,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"c5910039-c104-46e2-b476-f66aa03ca802","block_type":"box","text":"easily accessible place.","page_number":147,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"38bbe934-3e06-4de8-8cbc-922136b1fde0","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":147,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"5e018e29-b16a-4bd8-80ab-ed54108f58a9","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":147,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"bf1c8b4e-e7e2-454a-a59b-baad5b8435ba","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":147,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"257cdefc-cea9-415a-81c2-708c5ff610dd","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":147,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"99fda331-cb31-46ad-a7e2-68a58cb07185","block_type":"box","text":"fiscal year.","page_number":147,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"efc7ea9d-e69d-432e-8007-efdc8d3cec91","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":147,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"fdac8c49-e86f-4532-937f-b20b689844f0","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":147,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"a751839a-9fbc-492d-bc7e-9056793f11f2","block_type":"box","text":"imposes a limitation on certain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":147,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"d2170d6a-5531-46dd-a5fe-e3fe013c6958","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":147,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"54e68a80-9956-4a96-9b51-7bb3d88ae8d3","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":147,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"d2bcbaf9-1197-474f-826c-bf50f9e6f447","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":147,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"d5565fe2-affa-462a-90c3-505f704651e3","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":147,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"74dd2c63-7398-497c-969d-53158e460f22","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":147,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"662be6de-6017-4105-b5ea-dd454ae7cecd","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":147,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"6c2145cf-5c14-47da-9705-4fab8902dffb","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI","page_number":147,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"6a293dd8-56cf-41e9-a7f0-55e86921f7f7","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":147,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"4a492975-77ae-4d95-8c5b-ef066162e675","block_type":"box","text":"and Class R Shares of your Fund.","page_number":147,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"bd943d33-6147-4d14-b89a-3f98be96034e","block_type":"box","text":"Other Payments by the Fund","page_number":147,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"88548c04-cde5-4aae-ae55-939c1f21231a","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":147,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"89c5d28e-25d2-4623-aeaa-4f07e0fed2fb","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":147,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"fa38ffe7-120c-4ce6-bc73-c39a8d63834b","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":147,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"bb9f50a0-eb08-428c-9cb6-483382e515f9","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":147,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"7baa95fe-f78d-4539-b3fc-5962a9445097","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":147,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"8ce3dfd1-78b0-4c65-b3ac-f47733e75af3","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":147,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"4e69364a-c560-4f42-a15d-2c41d4447001","block_type":"box","text":"of these payments may be substantial.","page_number":147,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"8fe278bb-4fde-4cf8-bb84-f98f84e8dced","block_type":"box","text":"Additional Payments by BlackRock","page_number":147,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"3aa0ab8c-8fc3-479e-8a3f-539a8cecd6a6","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":147,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"8b529011-2431-4662-ba78-58673d99b203","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":147,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"00c313f6-fc04-472b-b99a-22d86818ff42","block_type":"box","text":"its shareholders and/or for data provision or technology support. A Service Organization may perform these","page_number":147,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"1b67dfce-1a72-43ba-bf2a-fa1178e233e3","block_type":"box","text":"obligations itself or may arrange for a third party to perform them. These payments, which are not made pursuant to","page_number":147,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"d2ead8e5-a100-4572-b764-b252994f3f29","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":147,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"1855331f-9849-447d-a5be-ed59549aee2b","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":147,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"1884e2f4-3e64-40b8-b77b-6cdd0c065a34","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":147,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"b72dff10-4061-4dce-b802-d760aababb49","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":147,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"8a2e439f-bd4d-45ad-b31c-8bef8199ab38","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":147,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"064c7a40-1cca-4eb0-9ba9-3855f1cf7e56","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":147,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"e010a09d-6a27-4c6e-aa49-60ae8757bdb8","block_type":"box","text":"II-109","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c772b874-88c7-4079-aa22-671945ac6f9c","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3f64c7df-54b3-4878-b22a-0df3058ed040","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":148,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"143e3848-fa74-4044-b865-5d110d74e1ea","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":148,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"64ed3549-bb58-4bf5-a0fd-9948d6610b6d","block_type":"box","text":"applicable FINRA regulations, the details of certain of these payments, including the Service Organizations receiving","page_number":148,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"d4ade29f-b9d9-4439-9645-7c266d7b0c4c","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":148,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"9b2820e6-f71a-498f-9c19-7941f8f6935d","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":148,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"bb82146d-63f2-44a2-95eb-4e9088417303","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":148,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"80457118-b61b-4cd9-9b40-981213fd56e3","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":148,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"8862e168-58b7-4724-80c1-ff03d2b7f063","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":148,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"6f716ff1-6935-4844-8562-38f62cc4d554","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":148,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"fd82b4b7-9d38-4109-bd0b-ee9f4d59e430","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":148,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"207e026e-0660-4c5b-b4c1-5ec7b77a5c29","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":148,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"059f5bf2-5e9a-45b1-9aeb-c98c2851ba0f","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":148,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"15f5ed0d-50d7-46d3-a3b2-342b95b55064","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":148,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"499c9f46-75cd-40da-bbd1-30742d28e18e","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":148,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"970a3077-feb7-4717-a550-1e6f9e0e055f","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In certain","page_number":148,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"a3459175-7c03-44f8-b5b5-deccc7f9a9ac","block_type":"box","text":"cases, these payments may be subject to certain minimum payment levels.","page_number":148,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"dd39b0d9-b2ac-4bcd-8681-3b845949a866","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":148,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"48449c33-2aca-45f5-a551-21a1cc79b86f","block_type":"box","text":"certain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":148,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"2fd1c008-f675-4068-ac01-5bbd03089fc6","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":148,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"1d1a6704-c94c-4b1e-8d25-90e9ad8b1329","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":148,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"c5f14834-63a8-43d1-812d-b8a875b45144","block_type":"box","text":"Funds.","page_number":148,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"650d8c42-df46-4207-9102-5b17850d2516","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":148,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"12733bd8-6a1f-4f50-8ba2-ce3175a52b58","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing support activities. 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These payments","page_number":148,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"63f0716e-5c99-4434-bf31-0fe4f5ee93de","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":148,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"8a91a9a7-c3b2-4df5-9563-603e4896bd89","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":148,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"f885c01a-481b-4ab1-b305-ca4c0150eb34","block_type":"box","text":"B. Shareholder Services","page_number":148,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"332f3c63-625d-4a1d-a34e-0973c980b8f1","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. 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This list may change over time,","page_number":148,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"c4c58fd4-d330-4115-b893-7f24f566faad","block_type":"box","text":"II-110","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e3051eae-0025-416f-883f-8276df93c2c5","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":148,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d9c71128-93c5-4a9a-9ff6-a89808ffe73c","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":149,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"e6c78e97-25fa-4952-9f20-0bb8cc4d6503","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":149,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"c345f25c-212a-4f4a-9d96-40d636182608","block_type":"box","text":"payments 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BlackRock","page_number":152,"box":{"x":70,"y":361,"width":833,"height":11}},{"id":"55ba02a7-3185-415f-afde-66be8f7d9752","block_type":"box","text":"configures these tools and calculators and localizes the content for Service Organizations as part of its customary","page_number":152,"box":{"x":69,"y":376,"width":817,"height":11}},{"id":"fd275eac-2186-41e4-8514-74ddc2c9d354","block_type":"box","text":"digital marketing support and promotion of the Funds or other BlackRock funds, iShares ETFs and other exchange","page_number":152,"box":{"x":69,"y":391,"width":815,"height":11}},{"id":"df899d78-2b46-479e-9a09-8e520ca9083c","block_type":"box","text":"traded products.","page_number":152,"box":{"x":68,"y":406,"width":116,"height":11}},{"id":"524766bc-773a-454c-8607-a72d9b10e722","block_type":"box","text":"F. Conflicts","page_number":152,"box":{"x":102,"y":429,"width":78,"height":9}},{"id":"788b0ce0-0ef8-48ea-889e-b3b63dd2be1a","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":152,"box":{"x":101,"y":452,"width":710,"height":11}},{"id":"b8c8df7b-fc4a-4c07-924f-231a8939990f","block_type":"box","text":"arrangements may be an important factor in the Service Organization’s willingness to support the sale of a Fund","page_number":152,"box":{"x":69,"y":467,"width":803,"height":11}},{"id":"89ad2cc1-6f33-40e4-9319-4b299e75dcc3","block_type":"box","text":"and/or particular share class through its distribution system or to perform services with respect to such Fund.","page_number":152,"box":{"x":69,"y":482,"width":788,"height":11}},{"id":"0f24984b-a761-41db-b64c-0e9668ef34a0","block_type":"box","text":"Additional Payments and other incentive arrangements may also be important factors in the Service Organization’s","page_number":152,"box":{"x":68,"y":497,"width":819,"height":11}},{"id":"e9d629f3-6b7c-49e8-868e-2746949ed422","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":152,"box":{"x":68,"y":512,"width":473,"height":11}},{"id":"fc806a49-e7e3-47a9-af9c-1da19d6b6d0f","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":152,"box":{"x":102,"y":535,"width":793,"height":11}},{"id":"034b3d0b-4afa-480f-9448-87b2e447fb85","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":152,"box":{"x":69,"y":550,"width":835,"height":11}},{"id":"d34f24ce-8f31-497d-b409-10d7cb6a6bfb","block_type":"box","text":"the extent Service Organizations sell more shares of a Fund or retain shares of a Fund in their Customers’ accounts,","page_number":152,"box":{"x":68,"y":565,"width":833,"height":11}},{"id":"c9199f31-bed3-403a-9d1a-7f05d9e8349b","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":152,"box":{"x":70,"y":580,"width":830,"height":11}},{"id":"ce6fe37c-ffaa-4e3b-b29f-bf6f55b3c46d","block_type":"box","text":"Service Organizations may have financial incentives for recommending a particular Fund, share class or fund","page_number":152,"box":{"x":102,"y":603,"width":774,"height":11}},{"id":"c6e10a95-ba79-42b2-9160-c24384a4b053","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":152,"box":{"x":69,"y":618,"width":794,"height":11}},{"id":"69e4b9c0-75a4-4296-92c5-6fbd9113106c","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":152,"box":{"x":70,"y":633,"width":818,"height":11}},{"id":"6c7dd25b-f58e-4be9-a390-c204a7339cc6","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":152,"box":{"x":69,"y":648,"width":836,"height":11}},{"id":"2d6a3c48-7e58-4c81-99e4-d74cceffeacc","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":152,"box":{"x":69,"y":663,"width":723,"height":12}},{"id":"6dfd0338-5433-4fdb-b3cd-a528dbdbb92c","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":152,"box":{"x":102,"y":686,"width":759,"height":11}},{"id":"d3dfd232-c528-4240-bd3a-16429416055b","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":152,"box":{"x":69,"y":701,"width":760,"height":11}},{"id":"ecfed705-f35e-4e82-b104-d2d02290ac72","block_type":"box","text":"appropriate.","page_number":152,"box":{"x":69,"y":716,"width":84,"height":11}},{"id":"18e27339-de7c-4c9d-87a1-5aa52e3d42cf","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":152,"box":{"x":160,"y":716,"width":738,"height":11}},{"id":"8df84379-aa72-4cca-8e7a-acc69acd7684","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":152,"box":{"x":69,"y":731,"width":795,"height":11}},{"id":"242318b5-fa6c-4ddb-92ce-1106a16880c6","block_type":"box","text":"described above.","page_number":152,"box":{"x":69,"y":746,"width":122,"height":9}},{"id":"b1d31e9c-97f1-4854-97e1-8ffd2c7bf3df","block_type":"box","text":"REDEMPTION OF SHARES","page_number":152,"box":{"x":385,"y":776,"width":208,"height":10}},{"id":"bb670539-063f-4d82-87f5-e697b4cb6169","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":152,"box":{"x":102,"y":799,"width":798,"height":11}},{"id":"1008ccfa-0c6a-473a-a7da-935539f79491","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":152,"box":{"x":68,"y":814,"width":836,"height":11}},{"id":"57664940-2a69-402b-813b-6a1ce4f9edec","block_type":"box","text":"computing a Fund’s NAV), by delivery of securities and other assets selected from the Fund’s portfolio holdings at the","page_number":152,"box":{"x":69,"y":829,"width":840,"height":11}},{"id":"21647119-609d-4d6b-8e79-c67f0f860c06","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in portfolio securities and other assets rather","page_number":152,"box":{"x":70,"y":844,"width":814,"height":11}},{"id":"71a05e87-3bd6-4f61-99e0-2d4bc17c43dc","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":152,"box":{"x":68,"y":859,"width":809,"height":11}},{"id":"3b5f48a3-f2f5-4595-8228-1800b300ae1e","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":152,"box":{"x":69,"y":874,"width":827,"height":12}},{"id":"acee0a4f-9768-4c18-a917-090d70829aba","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to convert the securities and other assets to cash. Each","page_number":152,"box":{"x":69,"y":890,"width":839,"height":11}},{"id":"2d59ba16-d8f2-437d-a94d-91c1044a87a7","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":152,"box":{"x":70,"y":904,"width":797,"height":12}},{"id":"e3b7364b-03d2-479d-9f76-7e9431ebf5dc","block_type":"box","text":"II-114","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0e9bb349-aebf-4429-98e9-72fba7003246","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f7c0ee22-82cc-4708-8ac8-51222f8fb3b3","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":153,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"21dc95f5-c57a-4aeb-aeab-de55eed8c515","block_type":"box","text":"for any shareholder of the Fund.","page_number":153,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"77519654-bb04-4a0c-aa9c-7b69f0530631","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":153,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"75718f28-fcc8-4869-9a03-e0eb1bcb7989","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":153,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"c9e82a81-65c3-41a6-8dd1-2e0458b7ab47","block_type":"box","text":"time of purchase, depending in part on the market value of the securities held by the Fund at such time. Except for","page_number":153,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"ecab2212-1442-43ba-9e5b-7881b771a100","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":153,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"85b1dd35-4380-4b71-a26a-c84af9fc87f0","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":153,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"41b28941-b9d8-4074-918c-f9461649a863","block_type":"box","text":"redemption.","page_number":153,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"2c1e1012-bdf7-4e9b-878d-ac4afa58eafe","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":153,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"3a1989d4-5ad1-4eb2-a458-8024654c2fb8","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":153,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"4475dd86-f714-4e21-871f-2726fc19f55e","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":153,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"8034e05b-7cdb-4977-a07c-9e9cd6c77207","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of portfolio securities or","page_number":153,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"6801badb-85b9-4c2f-9473-4ed1fc53ab6d","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":153,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"e8d6576b-f348-46b7-bb3a-cd1cabb02cac","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":153,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"68005ba6-842e-4b58-baf5-e33a3025525a","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":153,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"30ba82aa-dd7c-45b7-a798-d4c0d77501fb","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":153,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"94349c61-b3b4-412c-a6c4-eeab4356f216","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":153,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"f83845c3-5901-4225-8302-0adaf5d127f8","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":153,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"013c5a64-2e7d-4529-9c49-88560274cd94","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":153,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"8258c8f9-3420-43da-b982-e8b291c9c190","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":153,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"2de12b6f-9962-4b29-a559-6eaed351730f","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":153,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"2ff1840c-5525-4e11-ad26-1f411efd5aab","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":153,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"c3a14885-2d57-458d-801c-7606a3c5997c","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":153,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"55c25672-0d99-48a7-916d-59bd476e74d8","block_type":"box","text":"so redeemed shall have no further right with respect thereto other than to receive payment of the redemption price.","page_number":153,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"a1d13f5f-5c6a-414a-a53b-cc13e43f4999","block_type":"box","text":"Redemption","page_number":153,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"f938436a-fec2-4ea6-88cc-4feaf0ad8f17","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":153,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"d67eb89f-5ce4-47f7-b70f-037858ca2451","block_type":"box","text":"Redeem by Telephone:","page_number":153,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"ddc9d939-a347-4ff3-ac65-60dad89c1b40","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":153,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"23e92cde-7bbd-4dda-9792-b360a4698c7c","block_type":"box","text":"telephone request if certain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":153,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"d139994a-75d5-491a-b5fd-ad6b1e639735","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":153,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"c14c4556-f063-4583-ba55-b681cfc30fe1","block_type":"box","text":"Certain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":153,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"b7c9dc6f-66b5-46cd-958a-e9adf01d0170","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":153,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"d840b9fc-e516-4e6d-a5c7-2b835e47172b","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":153,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"5a5d464a-3ae2-4b37-b456-a26445573d7c","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":153,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"e98aa0e6-8baa-42a8-9621-255ea5ba8c46","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, certain redemption","page_number":153,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"b26cecf0-846b-4311-b82d-aba20104082f","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":153,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"de59cf07-e101-48c0-88d1-2e23580d4509","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":153,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"f016e0e8-1845-4301-844e-14f3f0934197","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":153,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"1056e562-5fb4-40a0-82ee-90018476bf76","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":153,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"aa990fff-f3f5-40bc-b722-f842764087ee","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of these programs","page_number":153,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"c9a0a8fa-1860-4963-97e4-63cc05e3f231","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":153,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"74cdffb5-e576-47ec-8c9f-1902931cbb4f","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":153,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"7697cd16-61df-45a1-b812-7e9841608ef4","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":153,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"ae8a0091-417d-4540-b4eb-7afefd2cfc88","block_type":"box","text":"is requested by a corporation, partnership, trust, fiduciary, executor or administrator.","page_number":153,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"fafb1b9a-f2db-478e-b7f8-bb1e8aa4ff03","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":153,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"c390127a-3eb9-46ec-a6a8-483b358efcb9","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":153,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"5a0ec575-ae2b-45e2-bcbe-67ab3ccc5ec7","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":153,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"cfda0480-28e6-4d74-89ca-232aa24510e1","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":153,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"a5e1195c-64cb-497a-b8e9-d82a43b9a7d5","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":153,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"bfee542c-3af6-43bc-b9d9-331a4b9fa580","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":153,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"b0dc4efa-87e0-44e7-9935-f8c27867bde4","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share certificates have been issued","page_number":153,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"4fdc1b83-bdbb-4605-90ce-dd1af30a8a7d","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":153,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"6b3b10f5-3aea-443b-addd-5f94c36f1cc4","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":153,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"f18a8eb4-1d14-4d9c-a58f-c1bc81455081","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":153,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"03eb9cec-7222-47f0-8987-23959efaeba3","block_type":"box","text":"II-115","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a841a0b7-6185-4ed5-8bd8-f33b0a089822","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9ee5e944-3ab7-437d-bfa5-92c641191d08","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":154,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"0119bf54-d310-49db-a463-64f233c49f48","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":154,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"f9acc298-ff69-441d-a445-5bd7db2d3b5f","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":154,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"42f83b37-9515-42f1-800d-06e0448eb53e","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":154,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"a02272a5-2236-4a9e-ad90-34b745c9d8bc","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":154,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"02099968-d124-44ce-b1d2-85edd3721a83","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":154,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"caffd208-3738-477e-9825-30932a3471fb","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":154,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"2d3086fa-5906-4b38-ba33-d4cc5c8e99a8","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":154,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"37006ce2-b90a-49f5-85d2-3005e6a98ee3","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":154,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"49aae060-cf3e-4e0f-8685-09c89435969f","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":154,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"9fa8c244-f8b6-4320-956d-cc4e7b2bd5d6","block_type":"box","text":"Redeem by VRU:","page_number":154,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"d99c7dd6-7de4-44f3-8e8f-7b7038f82922","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":154,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"1bde4e15-958e-437f-957b-8bfb962a3a50","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":154,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"85288b7d-9723-4317-90e9-ae2014c9dc70","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":154,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"aad8519c-4630-4729-ad5f-3450fec3c999","block_type":"box","text":"Redeem by Internet:","page_number":154,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"918352f5-2d0e-45d4-9ff7-981085bc5c3a","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":154,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"60043e60-754e-40b9-a265-249a447206ce","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":154,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"6c67e412-7a1d-45cc-8f9e-4d6748e9e6f4","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":154,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"5666753f-9095-409c-af2e-af407b949bca","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to certain","page_number":154,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"8a12debd-67b6-4342-aee0-46602f5bdfa1","block_type":"box","text":"institutional investors.","page_number":154,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"06a4f479-a5f5-4edf-96b0-a333cceb666a","block_type":"box","text":"Redeem in Writing:","page_number":154,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"cf39f9c5-3c54-49bf-a598-f0d96378af11","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":154,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"2815baa6-1070-4f77-880b-34d3335ea18c","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":154,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"2665fe87-8a13-45de-9cfb-a9874c8697de","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":154,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"c5f20c04-2844-4d3f-ae7b-e862ee86b89f","block_type":"box","text":"Pennsylvania 15222. If you hold share certificates issued by your Fund, the letter must be accompanied by","page_number":154,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"228dc7f8-e231-49c7-82be-35578543c787","block_type":"box","text":"certificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":154,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"64f5f24b-763d-4013-9bbb-de525aa8d640","block_type":"box","text":"generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature","page_number":154,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"1a245de0-51fc-4421-bd68-ec727ad703ac","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":154,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"104da425-8fb5-4aa0-8a37-43ca201a3c48","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":154,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"72cef7ef-21fc-4d7a-baca-160f1271316f","block_type":"box","text":"hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":154,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"33457067-4acb-4772-9ca5-ced734309123","block_type":"box","text":"or wire to the bank account of record.","page_number":154,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"ba47c83c-60d0-4cac-99be-ac7831667561","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":154,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"42a9400f-39f0-4cb2-bbc8-ba445c981f9b","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":154,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"bd4b5a69-0385-4e63-bf04-035efb9541e8","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":154,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"63a207da-364b-4a9a-8341-75a90a59dbd5","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":154,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"3c1e50a3-59f1-4d58-992e-3d97a5b17ef8","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":154,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"be52e370-9ca3-4e17-99da-b503a4634f46","block_type":"box","text":"(that is, cash, Federal funds or certified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":154,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"dc6d1466-9a1f-424d-a520-d97c51482c72","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":154,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"16fe933b-64e0-4a20-ae83-44df5bbe675f","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":154,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"10cdac45-b39d-47aa-bcf7-8f836ea33e25","block_type":"box","text":"redeemed by the Fund.","page_number":154,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"1dffb3fe-0372-4edd-9bd5-507d7e500cbe","block_type":"box","text":"Note on Low Balance Accounts.","page_number":154,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"1f555fb5-d6c7-4fbe-a6f2-85304fd3a7d1","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":154,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"94a1fc11-cd60-4b8b-96a8-c933c265bbe1","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":154,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"d60c48c7-8085-467f-8dfd-0d5372e1533f","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":154,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"37c63a40-270d-4fea-91c3-cd47c75bcb9f","block_type":"box","text":"for any reason, including market fluctuation.","page_number":154,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"3c4ab983-3179-44ff-b494-7e3cd1bbe1ea","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":154,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"dc788e5b-22df-4a90-a154-0941f75452ed","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":154,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"3e34d484-9093-445a-b95d-278e04a0e7bc","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":154,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"d3c434ee-1b2f-44bf-8a0e-93937d2babde","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":154,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"fb824139-a2bc-4279-9d25-1177da2a15f6","block_type":"box","text":"certain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":154,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"099b574d-7788-4d92-96da-294df7b1a77c","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":154,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"f9a5bcba-59a8-4ffe-9a53-ba1f5c6fb428","block_type":"box","text":"Redemptions in Kind:","page_number":154,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"b640b544-5c0d-4d5e-8109-008a1444a611","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":154,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"403417b3-7ac4-452d-82cc-5d3baee6b062","block_type":"box","text":"whole or in part by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":154,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"40537c99-4a3b-450d-9347-bf87ced10b5c","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":154,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"3976c3a2-0890-40b8-a2f9-e486f0888290","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":154,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"152348c7-ca10-443e-a535-f37a31980420","block_type":"box","text":"normally be paid in cash but may be paid wholly or partly by a distribution in kind of securities.","page_number":154,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"35263c4e-aff1-4e43-9886-6fa692ccacbb","block_type":"box","text":"II-116","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d117adcb-6c75-428d-8bbe-7c59bdc3bc9c","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":154,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bbce2d5e-7266-4cda-83eb-3266d5fc956a","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":155,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"52ff6538-4bce-47a4-9bd3-516ae884c07e","block_type":"box","text":"rata representation of the Fund’s portfolio or a non-pro-rata representation of the Fund’s portfolio depending upon","page_number":155,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"8cdd89f2-1760-412d-b857-39ece28d4c63","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":155,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"ba515c66-dd3e-4a26-af56-12cc2e04d78a","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":155,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"52b088b4-cee0-46a6-be88-7b60b4d43b14","block_type":"box","text":"considering certain factors, including, without limitation, the portfolio management team’s model or optimal portfolio,","page_number":155,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"272702f1-1df1-4a8f-a6d9-808c22543115","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":155,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"c570dab8-8dff-4dda-a1b4-19cf403e002e","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":155,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"280e233e-9aac-44ae-9854-116bce2e8913","block_type":"box","text":"retain those securities that will perform the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":155,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"8c41b713-2ad5-4e2a-ab36-fa39fc50a8d5","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of portfolio holdings","page_number":155,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"76ff3ff6-fc2e-4900-8fe2-12542f467056","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":155,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"68804be8-683a-4cb4-bd4a-8aa111bffe8a","block_type":"box","text":"The Funds may effect redemptions in kind in an effort to, among other considerations: (a) manage the portfolio","page_number":155,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"2f34b6e2-b657-4b86-ba4a-83fe03a230f9","block_type":"box","text":"efficiently or for any other portfolio management purpose, and (b) externalize certain transaction costs that would","page_number":155,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"fc907fbe-eb8a-41b7-a1ab-d7b541773294","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or portfolio turnover. Redemptions in kind may","page_number":155,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"2a1c4a59-af72-4c34-b663-9bf9d8e0cae8","block_type":"box","text":"reduce the need for the Fund to maintain short-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":155,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"1a735bcc-fcf2-44b3-9ba3-7c43e6ac55ac","block_type":"box","text":"for the Fund to sell its investments at inopportune times, and lower Fund capital gain recognition, all of which may be","page_number":155,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"d1fc8df3-4459-42fd-9182-9655f4cacf03","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":155,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"24f4414b-70af-4d81-b682-4dde68c95f8d","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":155,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"6c4833b4-ef1c-43ee-9d57-471fdefef173","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":155,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"e39370c1-f4d6-4a50-bcfc-31bc527dbbb6","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":155,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"1c1b975c-4111-4a88-a392-12903755db64","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s portfolio, or a","page_number":155,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"a29a154d-64e4-46d7-ba5d-231c0326eca1","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":155,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"2bac6a49-7c41-41e3-b940-bc7ad107af54","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":155,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"db2f4a45-4bbc-4cc0-bd5e-dad70b8d65ce","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":155,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"31c11603-1035-48b5-8519-946904d6ef77","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":155,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"4a099ca4-f47a-4cf6-b798-7a555cfc1802","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":155,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"5dda2cff-14e7-41b7-b72d-957d3e17ef07","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":155,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"d009ac61-90c7-496a-be41-e03389e357a4","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":155,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"09ee06e8-6ba3-4496-84d5-f1ba3143b2c1","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":155,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"c58eb0c6-b72d-4ae4-8146-c15b7626233d","block_type":"box","text":"institutions that participate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":155,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"17423913-9486-4636-91e7-6e781ab2a818","block_type":"box","text":"doing so. The Funds’ short-term trading policy shall not apply to the transactions described in this sub-section.","page_number":155,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"3d1100bd-daa5-4697-8560-649a9b2063c9","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to convert them to cash, you may pay taxes","page_number":155,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"a51e7e7d-39da-4e0a-9a24-530b3d098698","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":155,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"2a7259e9-ea9f-4cd2-9967-b36811517c83","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":155,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"8b02cff0-527e-4808-80b7-9b888335291f","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":155,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"78fb9085-fce5-4fb3-aa20-097a0f826726","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":155,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"da6ced11-09de-4204-953b-d17b28aeb378","block_type":"box","text":"Repurchase","page_number":155,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"c9888896-d2dc-4071-9f48-6aefeb65537a","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":155,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"e490c4a8-9268-4ac3-89d6-3a7ad0dcdc5b","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":155,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"db415de9-b97c-4328-bb6d-637031e28982","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":155,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"e7b10ec8-d5b1-4ce5-9300-907c3043f0b1","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":155,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"a0a3ffa6-cbca-4851-a292-784a41a158d6","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":155,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"588cb3ad-5e17-4b36-b2ad-187cd4d19c7a","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":155,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"8222309f-3f86-4f5c-a5a0-ab9344b8195f","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":155,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"85b50a05-551a-43f6-8e0a-016bd9884dcc","block_type":"box","text":"next business day.","page_number":155,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"fa172a5d-2476-4a71-85ce-6ceee77917eb","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":155,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"f690ecc1-d33e-45ea-b543-7bc5f3b6e8b0","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":155,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"4d6f2202-1378-454a-83fd-bcfa72c7733a","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":155,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"52860a79-8302-4c01-b34a-3c03314d1963","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":155,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"ddbe28cc-7666-4108-81a4-877883ec9c2b","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":155,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"9a54097e-61c4-462b-b043-94374b9af5d8","block_type":"box","text":"redeem shares as set out above.","page_number":155,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"5fb6fb43-c1c9-445a-b8b9-b31993b46d61","block_type":"box","text":"II-117","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6663a35f-b0ba-4215-a542-5cd24efa39db","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":155,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"835fd281-04b3-47e4-85ce-8e1926fbb34c","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":156,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"5e0bc159-dd6f-4a24-9d76-241bc3e09f2c","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":156,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"341ee79f-5218-494b-8c7c-03ce74b9b3fe","block_type":"box","text":"reinvest all or a portion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":156,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"5671937b-36bd-44d8-9fb9-c0ce379be71c","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":156,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"93d97b1b-606e-4041-b448-a1c72fab61e2","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":156,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"fdd8268b-d92f-4b7c-a85f-c12f6c61c8c8","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":156,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"c7fea8ba-4131-4272-9d82-04d4d2fe2cde","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":156,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"30de71e9-f5dd-4780-86a5-9ea14390a044","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":156,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"91ed51ef-9042-41bc-b6c3-6ad9ea12d024","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":156,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"80e08e12-1e9b-4cbf-9c85-9d721826826a","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":156,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"273f6de7-def3-460a-a311-12e4d4b9120c","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":156,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"74b18aed-b15c-403f-af1b-8b00aca0c8e5","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":156,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"5bfb3b04-a89a-4b8d-8232-77a5c555956d","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":156,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"8073671c-3dea-45c6-9d5f-5359c6912403","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":156,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"dc3e3b99-fb24-4563-9e63-75be36779873","block_type":"box","text":"other financial intermediary. Certain of these services are available only to U.S. investors.","page_number":156,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"e5db7af2-8b90-426e-8c89-5b6e2098482e","block_type":"box","text":"Investment Account","page_number":156,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"6991a455-42d5-49fb-a83f-3dcf204c68a4","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":156,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"b3ea6a44-29f2-4666-a38b-565e5cc37a5a","block_type":"box","text":"least quarterly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":156,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"3237cab5-3482-4f9a-9e09-7a0475e4f6c7","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":156,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"ac8cf4a0-c10b-41c0-8ad2-55f1ed8b61d6","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":156,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"8ea4d2a7-37e4-4c40-b486-1c4a7cc46639","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":156,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"03a33e54-2caa-485c-a1d0-3d2d7ff99a40","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":156,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"214dfd92-ee49-47b8-8741-ba8f572851de","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":156,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"7133409a-a866-46b8-a158-3eda195fb6b9","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":156,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"f7bc5ba2-fdd2-45e4-a97c-1f30e3e8dd3a","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":156,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"051ce365-adda-47aa-b1e2-f317a06c3abf","block_type":"box","text":"automatically at the Transfer Agent.","page_number":156,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"87bec204-8075-4e61-9c5a-9313b1ac01c6","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":156,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"dd4583f9-1932-4241-949c-44def927b6ed","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Certain","page_number":156,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"e857411c-4b64-4513-ad5f-9b6e9bf1b361","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":156,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"4100a086-1418-4e0e-9aae-f5071509e172","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":156,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"3398617d-a50c-42c0-afde-94d576ee9d94","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":156,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"47faf17a-326f-4f24-a52d-cc7e93cb0098","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":156,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"7c44bc40-545a-469a-b9f2-c7d0ca64f179","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":156,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"975a0f93-ca00-4429-81e8-bcf88289672b","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":156,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"183ece91-5d03-4439-b6f8-c69745440d7a","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":156,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"c53f7a04-fbd4-4b9f-856e-c89bd53a31fa","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share certificates will","page_number":156,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"bb36e998-8ee0-4291-aa97-388d182661cc","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":156,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"5fc5b947-97cb-47e6-8792-37b78074c7ff","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if certificates had been","page_number":156,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"63c047f2-1870-488e-a67d-dfca195de898","block_type":"box","text":"issued.","page_number":156,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"ad0cb919-00ab-4665-86cb-bac4ca7f1b7d","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":156,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"2f24ed66-639c-493c-9532-7a5e47408cd5","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":156,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"ce29a155-0210-4231-93a1-10f960a6c519","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":156,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"d46fb1ca-6b0c-446f-819c-46761252ccb6","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":156,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"138e5a72-6d59-4a00-a9a4-7f0c8b3d855a","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":156,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"9834b420-ff6a-4ee2-b67c-d249bbc29a40","block_type":"box","text":"Exchange Privilege","page_number":156,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"7119cd7e-3635-446e-8ac1-432eeab5f090","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":156,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"772e7597-1ab3-465c-8297-a03e48a35b37","block_type":"box","text":"each Fund have an exchange privilege with certain other Funds. However, Investor A1 Shares may only exchange out.","page_number":156,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"a9ae442b-b952-48b1-aa8b-6aea23ae46ab","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":156,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"0fb8c7b2-d6a2-4724-9703-4b813e5e93c3","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":156,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"6cf18dda-000a-48ca-ad10-03fe6093ca36","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":156,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"18dc790b-a433-4253-aa50-d2bcf270cf1a","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":156,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"aac55a2d-1394-4838-abb6-7272328dc09c","block_type":"box","text":"II-118","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e6dc2c04-67e2-4066-bb42-f923c3472dc4","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":156,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"09f9cecf-c196-4cc2-8014-34c40c4213d7","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":157,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"72b3d1f7-05ce-4e32-a0db-79b7b6b69709","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":157,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"56e573d6-c787-46c6-b8f8-8aec607a18be","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":157,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"b0e1d459-60de-499c-95d9-931b97cb016b","block_type":"box","text":"Institutional Shares","page_number":157,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"14d22204-dff9-4f8a-99af-d1991a09fe2d","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":157,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"4b2b96ac-070a-47df-ba0d-ec54b8a442b1","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":157,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"35a61453-9b37-4d8b-ad07-b82602faa0a0","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":157,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"c999b393-ec21-4fc9-9f25-0f33eabd1bc2","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":157,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"32ce269f-b1a1-4ec5-b54b-18b1c58d25da","block_type":"box","text":"for Class G Shares of other Funds.","page_number":157,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"e83723cb-fde4-4e08-8286-dec6692fb00a","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":157,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"7c42c82a-75ac-4e4c-a112-beba987c9369","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":157,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"7e61a884-3a9a-4a0d-92cb-92c226e86a6c","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":157,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"32fe865f-574e-441c-8ade-4192a7d88317","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":157,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"f3f63b7d-cd58-4f20-a69d-dbaa491f11db","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":157,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"4d6893c8-37d3-41fa-b28a-cce25f2ac471","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":157,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"d6d58f30-91f9-48a6-b004-c5d6cede461f","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":157,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"a5e7b179-8423-4f62-b66a-3482c5f53f31","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":157,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"4f32ccec-4584-4392-b844-663322578495","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":157,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"f8e3859e-1d7e-47aa-8d50-90ed70feed82","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding (“outstanding","page_number":157,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"3112f19e-5a90-4e81-bc4c-455495480db0","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":157,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"5b1f7121-e14e-49ca-9a15-be41c672cdfd","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":157,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"46590567-15a7-4f57-8549-d38e30973f4e","block_type":"box","text":"the payment of any CDSC. Certain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":157,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"c37f7d8b-65d8-41c9-9d34-4f74cabb2634","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":157,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"8eaf5482-7b65-4dd4-9e3e-7fbf1ea9136b","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":157,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"e76460e9-4e55-43b1-929a-9919b722820f","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":157,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"728840d6-0f48-4129-b8bc-15aab655f591","block_type":"box","text":"Exchanges of Service Shares.","page_number":157,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"78ae4b3f-59fd-4fa1-a44f-05ec7260dc74","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":157,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"39a21045-9676-46c5-aae5-18bf636d091e","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":157,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"6d1544ab-840b-40bb-93be-541fcc28d1ae","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":157,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"c255041b-d5b3-4919-8fa0-b51e1ac5bdc5","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":157,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"3c0583af-bb6b-4b19-bba0-9692d19822d8","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":157,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"d222c677-2852-4f30-89bf-08d44308127b","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":157,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"6831b9ba-d226-453c-8e59-b3a5182edc40","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":157,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"2540d266-4cee-4fd2-9ab3-810db35c3431","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":157,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"cbd61c64-9920-4188-a3ee-bdb462c674b4","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":157,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"024877e3-f01e-4052-b8df-9a99540f92ea","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":157,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"d2d2e3cc-b1ae-48a8-a4b7-45c19b92e44f","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":157,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"6ed1c5e6-e504-4f9b-91bf-84292bc0537d","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":157,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"a930d106-4ab9-4210-8951-4ea129903b4b","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":157,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"5f9a7494-8b53-4b52-8ec6-f9393444e53d","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":157,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"4cf87992-7364-4945-ba1c-8c48466cfa32","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":157,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"6d52c7a1-8544-44d7-b81c-826f7b277d0d","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":157,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"39233c02-27d7-4359-9be5-1af1b913ca02","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":157,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"e6c0d163-f5ff-489d-8d9f-399bcb31e1a3","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":157,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"6356722a-9938-4df6-b45c-ed0b0f8373e2","block_type":"box","text":"exchange.","page_number":157,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"d897523e-5e9a-45b5-93db-306d6bd94052","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":157,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"e570bc2d-2e7a-4886-ac46-3042e6cff5f4","block_type":"box","text":"The exchange privilege may be modified with respect to certain","page_number":157,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"99ea5a44-1ee3-4959-86af-2185a78f5e3b","block_type":"box","text":"participants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":157,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"1fa7d37e-8fdc-4aeb-a511-d59fe772737b","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":157,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"946e2c95-da59-4eab-904b-04da0d46ff99","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":157,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"ce808f95-7ef9-4051-ba55-147c3a2b6e57","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":157,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"81921a0e-5187-473e-a7a6-c720d0503f6e","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":157,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"dfc81b6c-510c-4109-8cef-48884bbc5c73","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share certificates, you may","page_number":157,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"a46fa8e8-e017-41df-8f14-eff1d3c8a4cd","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":157,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"c2822763-7f83-4bca-9ad3-84f37df36f41","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":157,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"a7ad927a-6f08-40e5-83fe-08ee215e102d","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":157,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"de42ddbe-bac0-4d00-bb3d-9946d80242d8","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":157,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"26bffacb-66cd-41f5-8b73-cd92ac480697","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":157,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"d5c84b87-8899-4c74-9558-52075ad93d8f","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":157,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"166c7488-4a4d-42c6-a0f0-50867e07e18d","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":157,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"126a3f76-5392-4fd9-a395-8e6103e600ae","block_type":"box","text":"II-119","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c6bcaf10-3af0-48bc-8125-c27e58e06a0d","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":157,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eb4eea37-444e-482d-b3a5-5dbb892f6bf5","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":158,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"d1f59e7d-59d8-4298-920f-07a53104adff","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":158,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"5ebb8be9-21a3-4087-8c85-163254511534","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":158,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"951b8da2-ab5a-4e9b-9b07-a673360bb2a4","block_type":"box","text":"Transfer Agent in writing.","page_number":158,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"2376b15c-4925-4a79-a7cb-1fb56a89ed01","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being","page_number":158,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"55784535-173c-4a56-aa26-d96a039dcf93","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":158,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"d0b5ade6-2536-42c1-b9db-e38c861ba947","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":158,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"e2258e0b-3149-4036-b372-2f3e027aa8b7","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to participate in the","page_number":158,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"424a71ce-9ef7-4633-a3cf-6732178a87b0","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":158,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"9d2c2333-9ca4-48c7-8221-122c104ad974","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":158,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"6033e420-d1c9-4512-8903-b085cf6d5b4f","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":158,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"d63b4bcf-5b7b-4580-ad3f-bdd4fed60433","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":158,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"63439d8e-c6de-4b4f-8b71-48f22a2d07c2","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":158,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"c7076346-f67e-4072-8c2b-838306f087dd","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":158,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"a089f13d-9aff-4944-a446-62039481fbbf","block_type":"box","text":"objective, policies and restrictions of the investment portfolio into which the shareholder is making an exchange.","page_number":158,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"351720a7-2198-439a-83f4-859c1ce64955","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":158,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"d7a1ce83-5b0e-4cf6-8d30-9cfc266dc1c5","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":158,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"0d9c231d-2fa7-4f09-9c14-1eca4ba5282b","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":158,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"c36f6204-755d-470a-a7ff-8a0b3506dc7f","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":158,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"a20d4cf0-a067-4c80-9c7c-7faa5fb54b18","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":158,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"756d029a-7fe3-42e2-8aee-730683b6f157","block_type":"box","text":"do not operate to the disadvantage of any portfolio or its shareholders.","page_number":158,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"be8de070-1d28-4129-867f-c4e07b299d57","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":158,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"dfed7332-273d-4e6a-aacb-b758ee2064cd","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":158,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"feb1ea72-a3cd-4c01-89e5-47c965ca33ae","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":158,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"d1a1a639-9dcd-4a8d-983b-13697849288e","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":158,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"f738c1ec-dce0-4b3e-9f92-e1e7218d9e77","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":158,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"c4d6b967-5cee-48ae-9434-8b3d8e70ae3b","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent pertaining to such instructions are","page_number":158,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"2c091e33-b437-42d3-a9d0-5f42b7d27ebc","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":158,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"ae85e325-8ff4-488d-974e-76c3b7e8db75","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":158,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"13d684f8-6375-400d-8e9d-54178a4be891","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":158,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"ca2fe953-e2b5-4822-b96b-70ea6474b2bd","block_type":"box","text":"Certain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":158,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"ac281b37-ce05-4c56-907e-61730bffd7f9","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":158,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"ec29e74b-cc6d-4f1e-85b0-fbab4188727f","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":158,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"2f39b883-95b7-49b2-83e0-e65c6bb8bb5e","block_type":"box","text":"may be distributed by the Distributor.","page_number":158,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"5682ce6b-850b-46c3-9225-fbf4484a28af","block_type":"box","text":"Participation in Fee-Based Programs","page_number":158,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"8a1295f7-4584-4135-8efa-b73b77a24d56","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":158,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"3a320e05-8aa5-4edb-a2ce-6caf60b7415c","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in certain fee-based","page_number":158,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"a08a3ebd-336d-4210-963b-b16048bb30b1","block_type":"box","text":"programs in which BlackRock participates, you may be able to buy Institutional Shares, including by exchanges from","page_number":158,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"5924f295-3894-43f6-9390-bc1f01e31f35","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under certain","page_number":158,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"5c7dc6fa-b3a9-4be8-82e2-7027eed98645","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":158,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"9c4a696f-1b32-4962-9c45-8f7af34dd615","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":158,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"c235f8b6-c092-4c4b-9d9b-1ab458aeeadd","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":158,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"4dcede49-0ffc-47fe-953e-bc75e5c4d5da","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":158,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"762f0c7f-a7fd-4040-8fac-0346a19c1e9a","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":158,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"df3a76ca-c3a8-4b02-9d53-770df710e9ed","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":158,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"0d013119-cbda-45bf-bd11-3c6f05fa123a","block_type":"box","text":"an account. In certain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":158,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"74adca44-3c3f-4524-91a4-8f33b8ec6b8e","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":158,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"6b1508d7-e2f6-485f-b7df-c6f9fdb1e3b6","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":158,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"9ccb6ee9-469c-4062-b6b4-83ec7bd366a0","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":158,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"06845329-29bf-4645-8c4d-5b5f4e407ff8","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":158,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"f85b35d2-6a44-4401-bc94-a0c6388add2a","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":158,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"2c790fe7-7ae5-446f-b0c9-5a2e0a817602","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":158,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"185bdc22-0186-4fe5-b353-23a958443247","block_type":"box","text":"II-120","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"99ccd132-38a8-421d-b458-2d840170fd07","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5c32c5d5-412e-4c37-bd0d-feed0e757323","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":159,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"65d16e79-017b-44a0-b939-3375497975a0","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":159,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"03ae76f1-79ad-4fd0-9761-22908e9327dc","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":159,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"19fa9e3f-2714-4762-acf2-4abcfd14f27c","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":159,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"c18bf568-66c0-4425-ab8e-fc184766e57d","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":159,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"aa6273de-41ed-4b6e-93c1-1c9bf85d2605","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":159,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"96360ad8-c30b-4f55-84d2-ab5ec5459b15","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":159,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"b2e6ffb5-1605-4600-8841-e4e12d5dccb6","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":159,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"49d71466-8718-46dc-916a-386cc2b47682","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":159,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"9b545bfc-1dd3-496a-9dc5-f22e99a48204","block_type":"box","text":"information.","page_number":159,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"1b534162-419f-4c43-95f2-652844beed19","block_type":"box","text":"Retirement and Education Savings Plans","page_number":159,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"71aca7d8-1f68-4092-aae4-d88b976d15eb","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":159,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"6caea209-bb2d-46f5-b994-f9ae8fff6198","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and certain of","page_number":159,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"e6a1beef-61c8-4774-a6c0-e67b28acd7ab","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":159,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"154dc47e-d3cb-453e-90d5-57ae276dd898","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":159,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"8f2600f4-ad4d-4e6b-8426-9b3e30810f3e","block_type":"box","text":"your financial intermediary.","page_number":159,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"42fe959f-7154-4acd-abf7-bebbd89325e7","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":159,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"a78e5ddc-15a6-4571-8cb4-569905a1eeca","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":159,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"048f95c7-d40d-478a-a726-07fa0be4e4dd","block_type":"box","text":"distributed as well. Investors considering participation in any retirement or education savings plan should review","page_number":159,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"2d6825ee-15e0-4121-baba-e9eb3d9c4a61","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":159,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"41e48a5e-4052-4ef0-8105-79c47b3d9590","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":159,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"4f01e7fa-5636-4e76-bb67-dbf9cfdc21d7","block_type":"box","text":"Automatic Investment Plans","page_number":159,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"92263bb7-9cda-4e07-94df-55027b171562","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the Compass","page_number":159,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"22b73de6-0d71-4c43-b079-76a79e6cf714","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":159,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"9a74e311-8c93-4902-932e-1b7803c6a83b","block_type":"box","text":"®","page_number":159,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"88b3e3af-e138-441a-8c33-d301f4f796ab","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":159,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"b7db4bb0-d9db-4329-a885-f1f4aa6c01b2","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":159,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"46bb2136-4963-4b03-9eb3-b20e628e3b41","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through certain accounts, no minimum charge to","page_number":159,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"e6cb0bd8-dba3-438a-8a5d-112db73be512","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":159,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"ab91996f-4132-408d-a650-d2d120f0c824","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":159,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"2a8a70ec-8a6b-4676-8651-b3031cb8494d","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":159,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"deb147e6-3780-439f-8127-a62df4b12700","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":159,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"86110b2f-be5b-4931-8687-7195168ba10a","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set forth in a","page_number":159,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"2bf8fc17-2484-47ca-bcb5-d2eb54e3723d","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":159,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"260a8fed-b321-4811-9ec9-efda4c8f93ca","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":159,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"d1ff2452-7cc3-4d0b-bc79-86c6b8602ded","block_type":"box","text":"Systematic Withdrawal Plans","page_number":159,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"bc720a20-85a5-4e29-8ce2-40ac8e198b40","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":159,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"5d21c7d7-6dd9-4649-960c-3360f8d02b60","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":159,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"4f92e9e1-5f0c-46d3-bd3d-16b89979ac6f","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":159,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"d272cd58-35a1-4fde-9b47-e223275cf27d","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":159,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"bd3d2e2f-250f-4d3e-80d0-91d785d548ca","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":159,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"4dce0078-22aa-479b-b848-8cc416f81ae5","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":159,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"436d3127-2aee-4b2c-9fed-78a35fad84e8","block_type":"box","text":"www.blackrock.com.","page_number":159,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"2390b686-1461-4b3d-849b-7ad8525918f9","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":159,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"6657a929-2252-43af-a81f-2254d214fffd","block_type":"box","text":"will be depleted. To participate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":159,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"a241b732-c7c7-45aa-af8a-521434358cae","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":159,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"411346d1-32fe-44c6-87f0-3ecb682d16a1","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":159,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"97a32e0c-5339-403e-a4b4-8744e02dcf49","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":159,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"afe7e0c3-e257-4e25-854c-b4315206cfde","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":159,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"615b8575-4bda-4e7d-bec9-77bb820e51cb","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP redemptions of","page_number":159,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"90eeb42b-4aad-4963-a54e-a4069c7da9f4","block_type":"box","text":"II-121","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6c4a0ae6-cc60-41ed-a181-da57ad15985d","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8e8cb322-96ad-4976-9b13-5e1ec5a98123","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quarterly) and 6% (semi","page_number":160,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"c4b56e35-ed57-4ac9-ab92-6c23879e4291","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":160,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"7e541ea5-3cae-40ae-8c0f-f3750c5b4155","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":160,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"4f932d48-4945-47d1-8313-b5612a00fc6e","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above (see “How","page_number":160,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"e306d395-ce9f-44b1-8313-b9750a8b2f16","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":160,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"7a6ad544-8fc4-4cf0-9133-733f8d95b1be","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":160,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"ede65bd3-db0b-4e82-9187-e223faa8dc33","block_type":"box","text":"Dividend Allocation Plan","page_number":160,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"e31584ca-66b1-46d6-aba9-fa463d35b080","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":160,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"0451601e-2818-449d-9e48-0e7825a9b551","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":160,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"03837ae3-e6da-4c73-b696-8f23258c8314","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":160,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"18f05f73-91c6-471f-915a-342992cdc1d5","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":160,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"ee204e5f-610e-4820-b314-a3004d407660","block_type":"box","text":"PRICING OF SHARES","page_number":160,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"67b7abd3-76ca-4a9e-96c6-c592bb7ebb67","block_type":"box","text":"Determination of Net Asset Value","page_number":160,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"3aff1c7d-cf75-4b05-9ee0-51a0f58d3652","block_type":"box","text":"Valuation of Shares.","page_number":160,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"19144a5e-8d4b-42fb-8002-ce8b3cc182e0","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":160,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"0aa1a995-779b-413c-a38a-fd62b9d6370b","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":160,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"569d6a97-028b-425e-b2ff-f498d2eec7e9","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":160,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"86b3a9b3-ef4f-450e-a3ec-d535b9e3167c","block_type":"box","text":"Equity Investments.","page_number":160,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"97c05f0b-c724-4725-91f1-582cd37f4273","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":160,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"923d6d73-de98-45d3-b99e-d4e4d8588763","block_type":"box","text":"e.g.","page_number":160,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"b371a110-286f-4119-a26b-5070df4afeab","block_type":"box","text":", NYSE), on separate","page_number":160,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"502329f3-11c3-4c21-9282-1b4d82fdb72b","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":160,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"27fafe3a-77a8-4628-8670-33efc243981d","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":160,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"dbb4af0b-44c8-400c-8f35-776f8e7b57ea","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":160,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"f10dfa85-080e-4ef1-944d-ff1368e267c0","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under certain circumstances,","page_number":160,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"545db1d9-e8ea-4fe2-9644-2ff34655af62","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":160,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"ab7919b7-3833-4f2c-9391-8bf534565530","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":160,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"cee5f8e6-8d0c-446a-9672-e151350830a6","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":160,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"de17560c-abc9-4c8b-9361-6196cbc49309","block_type":"box","text":"last bid (long positions) or ask (short positions) price, if available, will be used as the value of such security. If a Fund","page_number":160,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"aa921bd5-d1ca-4879-ad1f-1c546397a7b0","block_type":"box","text":"holds both long and short positions in the same security, the last bid price will be applied to securities held long and","page_number":160,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"aa09d14e-baaa-4f5f-9b18-084978f3a3a3","block_type":"box","text":"the last ask price will be applied to securities sold short. If no bid or ask price is available on a day on which a Fund","page_number":160,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"9019242f-d543-46cf-a916-e47d19a9d745","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":160,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"c1233144-365a-476b-a7a1-708c0d7baa38","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":160,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"581db5a6-ef04-4705-97b6-4d305776f916","block_type":"box","text":"defined below).","page_number":160,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"9c3b4429-7819-4b01-91bf-d97c922f17bd","block_type":"box","text":"Fixed-Income Investments.","page_number":160,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"0229649a-c93f-4db4-84c0-8e39168b05ee","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":160,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"d1ab4141-5bff-4805-8af4-b5836730caed","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services, each in","page_number":160,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"f251457f-2ecc-42b1-bb61-0bfa56391fd2","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize certain inputs","page_number":160,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"bb4928c0-76eb-4196-b928-712e28686aa1","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":160,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"9ad4f3d6-c618-4940-8ec6-2b718d6834ec","block_type":"box","text":"e.g.","page_number":160,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"51bdf819-22fa-42f3-9b99-08efe2fb70a6","block_type":"box","text":", recent representative bids and offers), credit","page_number":160,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"920d73a1-684b-4fb8-9893-8dd3aba56081","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":160,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"12b7ec72-7e81-43eb-99a8-b756da84189d","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":160,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"d7a4eaee-b282-4d53-9245-39cf0b1de6f5","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":160,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"50e8e3f9-1d65-42a8-9eb6-212a4875ce98","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":160,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"c2a6e54f-18c0-48dd-b4c1-b7212c4165e0","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain asset","page_number":160,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"d86d3904-3a18-45db-827a-91a0f87dea0c","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":160,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"3baae7c4-8d67-4118-8abc-cb1d663f49f5","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amortized cost method of valuation may be used with","page_number":160,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"e6395b09-3b7d-4f6e-a34c-e626f4549957","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":160,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"6d780081-a72a-4e9d-80b0-a7d48a2e4797","block_type":"box","text":"value. Certain fixed-income investments, including asset-backed and mortgage related securities, may be valued","page_number":160,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"163a9a72-edee-4bbc-8365-314c1f713f66","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":160,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"2828a96e-5afd-4804-9266-016bbf6fe287","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":160,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"1347d171-9afd-48ce-9b9e-ca755176d151","block_type":"box","text":"attributes of the tranche.","page_number":160,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"6375104b-8f68-4119-9683-32054a3034a4","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":160,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"51a20c04-66ba-4f3b-a7d8-d8f835ab048c","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":160,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"cff33689-e9b9-44c5-98bd-edcf98a24199","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":160,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"5eac3083-df54-446a-a842-4d9d871de69f","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":160,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"273ab501-dfc7-44ac-8ecf-5432c50b42f7","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":160,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"31e8c259-0153-4f94-bb08-c4f4b390ce5e","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (short positions) price, if available, will be used as","page_number":160,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"a5c85ea6-c751-4603-88e3-ffc0c9ebb131","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":160,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"6f2ff030-fa71-4c1c-b007-d3e77af22b1a","block_type":"box","text":"II-122","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"921d078c-f295-4fda-ad89-9b49b621426c","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d5a3c7a2-716e-4490-848e-5968b465dcb2","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":161,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"2144367d-a35c-4fa6-81ab-208b3a0bc5e9","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":161,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"22164d03-6a73-4546-a6af-54924411cb56","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":161,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"bc1e4598-6b34-4be8-b135-12163f79fce4","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":161,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"064cfb2a-3cc3-415b-847f-413e0b0eb1d7","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":161,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"6ed7ed15-b418-465a-88dd-f85c1b024041","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":161,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"e401984f-4a1c-4722-9315-dafe50ff754e","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":161,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"7852e878-b218-43e8-a13d-a68c0c7cd4c4","block_type":"box","text":"Underlying Funds.","page_number":161,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"cb8ea699-d6f4-429a-be14-a6f74f8f7c5f","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":161,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"b522a1d4-1b68-42da-9fa8-63ac335189d4","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":161,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"34a836f4-70f0-46ac-be82-56da1bf9b404","block_type":"box","text":"at their most recent closing price.","page_number":161,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"06a0888a-6494-4ced-a651-f0a1f36b2dad","block_type":"box","text":"General Valuation Information.","page_number":161,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"6af5e70f-49fc-46d5-9688-b15dad345784","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker-dealers or","page_number":161,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"3863f357-5069-4a05-b8ba-e6c24d0f946b","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":161,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"1d664ced-4b38-4520-b3e9-0b7650056187","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":161,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"c8764663-04a2-4d1f-8617-e67f8f073647","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":161,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"76022d9a-59ff-4053-b6b0-5976d9edaf03","block_type":"box","text":"applied prospectively. Such determination will be made considering pertinent facts and circumstances surrounding","page_number":161,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"e98d5dbe-b63b-4e05-b778-5295e64fda2f","block_type":"box","text":"the revision.","page_number":161,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"1e80ff43-c1fd-4371-869a-dbe4ee5fc3f9","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third-party pricing","page_number":161,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"315029a8-7820-4f64-a86a-5307118d3c65","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":161,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"4b40a59e-03df-4470-a8fb-0065f0312e69","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":161,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"2f90ace1-3872-42fc-969d-e1f405dda539","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":161,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"16bb8eae-e123-47af-b9a0-66000502206f","block_type":"box","text":"price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation","page_number":161,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"7244f4d4-d8d2-4561-b658-dbe5676b3244","block_type":"box","text":"of the investment, particularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":161,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"f9d4ecb4-59b2-491b-8214-1c0bf26a0b2d","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":161,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"d2627154-8a8d-4547-bad8-5f68642dc7fa","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":161,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"7f857480-4466-46d4-8b23-15e1f563a0a7","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":161,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"13d0c52a-fe3e-4439-92a2-67abf667ef91","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-party service providers.","page_number":161,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"e3884555-cea9-44c9-a9b1-33491990cf2e","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":161,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"6d877d04-2691-4a1a-93bc-a83c39dfce7e","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":161,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"38d303b8-443e-407e-9b69-8def5540bfe5","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":161,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"9144f5c1-a661-4bf8-9c60-7c4f07475338","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":161,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"d8ef98c1-0dd9-460f-a801-c7fc87eda3c4","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":161,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"7350b0a0-e1d4-44b1-88dc-ae69de0c28b2","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":161,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"6708f83f-8e94-4bbf-bd66-71dd863b0ec6","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":161,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"d5fc1b04-dbc4-4a23-aa3e-764520436256","block_type":"box","text":"Certain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":161,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"30fa83ea-eb06-444f-acf9-203f33387eca","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":161,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"54d83742-4bf3-4e8b-947d-f25ffb833645","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":161,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"b9fe9c57-3b87-465a-bebb-45ec40b0f171","block_type":"box","text":"Fair Value.","page_number":161,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"7763c3d1-d242-481b-bbbb-0192d9a12b5f","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":161,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"0426195a-175a-4fcb-b1ce-639a8690f827","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":161,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"167645a9-de72-4d86-aab1-886eb1740492","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":161,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"60ecfba7-bca9-43c7-b916-bd235d80c596","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":161,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"4ae1426c-a0a3-48e5-94cd-a54cf0dd833f","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":161,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"05352319-1b25-4994-af0f-d61bea6b6d3c","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":161,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"9820cab3-5d6f-4497-bb2c-f9bc64bf6b0d","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":161,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"18e5592c-752b-48cc-843a-f2a8e06944bb","block_type":"box","text":"(","page_number":161,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"687be716-fe4e-4df4-a596-d78e289ed0dc","block_type":"box","text":"e.g.","page_number":161,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"6c597523-78aa-4b14-8c3d-6988c1f8d4b7","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":161,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"a5f56314-57f1-4d6c-b10a-3a7561208125","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":161,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"bba50c61-54ff-4110-a217-6df39dabee26","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":161,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"d34d810e-8479-4e96-8135-cda643d41537","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":161,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"49c817f6-f384-4833-be25-4c767d89d989","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":161,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"91c0c6a7-7278-4a44-9daa-af3c312cfb41","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":161,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"8345b209-1c50-4735-9aec-46ba4074be7f","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":161,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"32bc9a9e-5bcd-4cc4-9631-47015a79b411","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":161,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"819d7351-0429-4fc8-a879-b99eac0b868e","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":161,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"d2e1a844-5be9-421d-aa34-1a23d2f2c638","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":161,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"c024603c-065f-419e-a218-bd003b447355","block_type":"box","text":"be treated as a Fair Value Asset. For certain foreign assets, a third-party vendor supplies evaluated, systematic fair","page_number":161,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"b48ff6f1-963d-4769-b1f9-f345805171b8","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":161,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"d58d6c8a-c5ba-4706-9f99-7cf6f2079093","block_type":"box","text":"II-123","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"035d3f3d-e4a8-4516-a6c2-fce786296383","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6dbd18bc-fb5d-4287-b577-b86a4a7c5ddf","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":162,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"b9bb3106-7dc9-4bd5-8166-48f095c6b148","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":162,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"c6da6644-2723-4ea5-be48-0087a0f3b370","block_type":"box","text":"pricing time.","page_number":162,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"ef7063ff-a1c4-4870-a8b8-c680bb90d39f","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":162,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"7d94a9e2-d993-466a-8ca6-81b3de8cb7ad","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":162,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"da6c24b0-35df-410b-a1d1-f4188f043ed4","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-party pricing services,","page_number":162,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"0e659cd5-c71b-44a3-b426-8d6993025fe8","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":162,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"94f1e7c9-0ead-4a10-88d9-c4c4f965b1d2","block_type":"box","text":"assets and liabilities of the Funds.","page_number":162,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"afe727c8-fb5d-4d32-9cc7-6ada508e6e38","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":162,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"da6a311e-7151-4f22-8364-e1b3099c1926","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":162,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"33f675b6-87e3-435f-81a5-4f2b28ded23e","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":162,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"0a3b2c7d-de61-4fad-9d01-e3c2a25211dd","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":162,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"afc58fcb-c0e4-4a55-8bb9-3ab2cea133b6","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":162,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"ad27db2b-3342-45c5-a5ac-067986e93141","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-party","page_number":162,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"897a16d9-ab15-4691-9df3-8bf1c61c0b60","block_type":"box","text":"valuation models.","page_number":162,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"7af770d0-11b8-47b1-b779-c898ab0b66b3","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":162,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"e58bbe25-4273-490c-b2bb-9cfe0988a33a","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on certain factors, including","page_number":162,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"916b1c61-fbe1-4698-ac01-e53ed4dc16f9","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":162,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"db04e2b9-6322-4178-bd7a-2113e5645bec","block_type":"box","text":"alternatively, using proprietary or third-party models that may rely upon one or more unobservable inputs. Prices of","page_number":162,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"e9e6d2bb-3e4d-4a77-b0b8-0b05e1c86efe","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":162,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"78cdfb05-4462-43f7-b280-e1bb4ed8a45f","block_type":"box","text":"appropriate, an appraisal by a third-party experienced in the valuation of similar instruments, may also be used as a","page_number":162,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"0908b449-d9c2-4b5a-a63a-613dbb7f47f5","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":162,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"341a762d-8b42-421e-90b8-eec853720427","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":162,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"ff90c069-2855-4e0a-801e-6dabe3ec771b","block_type":"box","text":"liabilities could have been sold during the period in which the particular fair values were used in determining a Fund’s","page_number":162,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"693e517a-72c9-4ac2-9a9d-4508c8364e11","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":162,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"d4138a08-1ecc-49fa-985d-f8dbf56f8dd5","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":162,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"131d2829-94d1-4cc1-8428-56a7153efdd8","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":162,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"1d94337a-ca2a-45b4-9799-e447085008b2","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set forth in","page_number":162,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"a9ac6a33-64b1-412e-8da9-e52f68fbdd74","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":162,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"df339bc2-e263-4c77-a1f4-ffad0e32ff45","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":162,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"12bd1fc3-1b4a-453a-9e34-201e5769c7ad","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":162,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"ffd1aa4b-f6cf-40fa-a55e-6efaf287249f","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":162,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"a01ad227-800c-48ce-a043-d8999611d9b5","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":162,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"26a0554d-0168-4a06-8292-2dda0dd76d45","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":162,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"4faef1b7-59dd-47f0-9fe3-6443bce495bf","block_type":"box","text":"increase the cost and/or reduce the availability of third-party determinations of fair market value. This may in turn","page_number":162,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"548c3b54-e7c7-4917-9261-53ba24b2a1ef","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":162,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"b091262f-9b81-4b52-82a9-47e3eb3b02ff","block_type":"box","text":"party determination of fair market value.","page_number":162,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"99ec19e6-80ee-4f83-aee1-99dba889f25a","block_type":"box","text":"Computation of Offering Price Per Share","page_number":162,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"5c968dd2-2fab-4fe6-a243-23e1e5f70801","block_type":"box","text":"See “Computation of Offering Price Per Share” in Part I of a Fund’s SAI for an illustration of the computation of","page_number":162,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"a78cfeb7-0891-445d-8c8d-1a231cd8913e","block_type":"box","text":"the offering price for shares of your Fund.","page_number":162,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"c4d47521-91ba-4b47-80e5-1facbb336c7a","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":162,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"e83afb4e-0ac0-495c-9eb4-d7aed1578441","block_type":"box","text":"Transactions in Portfolio Securities","page_number":162,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"4652b830-6ee5-43d7-af15-5ba43bbe7124","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":162,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"8bb024db-697c-487d-9c65-b6f8b046531e","block_type":"box","text":"a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":162,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"bfbd0a26-6f41-4923-b641-8c8721f71db4","block_type":"box","text":"particular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account certain factors","page_number":162,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"d9a0e832-88ef-49b0-b616-ddb513584e00","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":162,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"6e969aab-d43c-489a-ad24-2580f41b6beb","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":162,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"4eef6351-9715-4cd3-8a24-84e5b8a75bd0","block_type":"box","text":"consistent with obtaining the best price and execution in particular transactions. Subject to applicable legal","page_number":162,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"f8ec66e3-f23d-4593-a450-0ea198f337e1","block_type":"box","text":"requirements, BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":162,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"723cc097-3758-4362-ae74-f70f90aa2c9d","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":162,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"6c978b52-0cdf-4481-98ee-cf1e5979624e","block_type":"box","text":"II-124","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"53f34aca-dc27-49b1-890e-f895bf94b0d9","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eac5760b-7fa6-4ba2-861b-209feef588ad","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":163,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"1a80d948-dda9-4c31-bf17-03f065a674ea","block_type":"box","text":"reasonable in relation to the services provided.","page_number":163,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"5ea682ce-e4ba-4b28-a075-6450742f41aa","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":163,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"98a4a043-dd6c-46d6-be60-2587fa1dfbb8","block_type":"box","text":"Master Portfolio, it is expected that all transactions in portfolio securities will be entered into by the Master Portfolio.","page_number":163,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"8277880f-444a-424e-b390-dadf2a71de18","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to obtain","page_number":163,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"29819c18-33ae-4a1c-85f9-9a83e3a05a20","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":163,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"adcc179d-9106-41f0-b55a-295d586c70c9","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":163,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"0784a2b2-3b57-4b15-98e2-c4afa50bc5b1","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":163,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"38c4f77a-e0cd-4afa-b3f6-1d4034c015e1","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the particular security or instrument,","page_number":163,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"15ec4658-83a4-4b98-981f-1b5e2289be8a","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":163,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"1cef43f6-d960-4c48-902c-1f5fe8ece73f","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":163,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"c99b8016-37b7-40a2-b570-40713422f3bd","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":163,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"9666495e-716b-43b0-b42d-35609340b135","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":163,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"6fc159dc-3ce6-42ee-848f-18ae83c04d84","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain circumstances","page_number":163,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"0cade47a-fb46-4526-8b49-d8a18f4042c4","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":163,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"7f4fc142-5481-45a8-ba43-b61fc3df5cf0","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":163,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"04bb47ef-6a92-4b84-9bd7-6af8ee5dab13","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":163,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"841bb17d-6e30-457e-8719-e3f69db9f037","block_type":"box","text":"principal transactions under certain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":163,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"a3dc9690-e4b6-43a4-b69a-a4f265901435","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":163,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"e0b43ba2-20d5-4c2f-aa6e-be05d8b5ec25","block_type":"box","text":"performance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":163,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"72a3e9cc-4861-424f-8032-e91121260f36","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers,","page_number":163,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"43f1d9e8-b284-4acf-8da1-1ebca5bdeeb7","block_type":"box","text":"industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and","page_number":163,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"c02c0f16-4e7e-4ba2-8967-a3eb8ad1f158","block_type":"box","text":"(3) effecting securities transactions and performing functions incidental to securities transactions (such as","page_number":163,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"b70288a1-0e6c-448d-926f-49010dfc2baf","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":163,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"118f58ef-f823-4c9a-a477-595f1e3cacc4","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":163,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"d82b2ea1-0e98-4022-8e52-b7e0868b5005","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements under which","page_number":163,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"4e57cf8a-28a6-4506-82e3-29c3e8d67efe","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a portion of","page_number":163,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"2a39103e-f34b-4871-9491-9da1443c3071","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":163,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"50dd0ac1-8f67-45b7-95c9-e9e0f22ea2b1","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":163,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"dabe6bd1-feb5-467d-83c6-02102c6273cc","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":163,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"c4774b80-a5ab-406e-9f14-658963e96c7f","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":163,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"8350115a-99fd-41bb-989c-54f43345570f","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":163,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"b998325f-d334-44fe-bdc2-823c13a51225","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":163,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"6b3cd3a1-2743-4fce-99a4-56e5d52b399e","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":163,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"0864f220-7377-4c69-a418-d25722448a34","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":163,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"5e280a03-b5c7-4c3d-a88f-6e6f97398da2","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":163,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"318d1abb-0654-4704-a5fe-f26b0fa6c700","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":163,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"83708279-67d8-4b4c-8963-2ee7ad0f7923","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":163,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"d0f70f17-50ec-4495-8cff-b6a53b4ce7f8","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-party and provided to BlackRock by the broker-dealer)","page_number":163,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"44e04ad5-ff9d-48db-b14f-cf1a74be69fa","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":163,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"683c14dd-3884-40ba-869a-d5c5f4fe83ac","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":163,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"88d4aba2-1742-4074-ac00-9b42f17c22e9","block_type":"box","text":"portfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":163,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"976be3d0-05de-4b11-acab-9ff8d197a9ca","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":163,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"6329f91c-1511-4c14-a158-e22864708d77","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":163,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"b5dbab1d-b816-4399-8602-ad5a4ca88613","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":163,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"f082b7dd-76ba-4aaf-82d0-692c7d3fb1f9","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":163,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"b4137420-507f-4b4a-9cb0-30922d1c89e4","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-party related research and","page_number":163,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"4b5f2213-8c0a-41d8-a156-2b5784556a5a","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":163,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"1713d529-7776-4beb-863b-ce8d8126a512","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":163,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"0c260085-ef4c-4606-a4c9-d07a7329279d","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":163,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"c573cf25-a7b4-43d5-8b24-24fc040ad9d7","block_type":"box","text":"particular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":163,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"60d6b4d7-f585-4d12-835a-d7cae08b7434","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":163,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"49e2ba8b-8a6a-40b3-89be-77fef05e6637","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":163,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"31505af3-e6c7-4216-9cae-3c3498313184","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":163,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"21db4df2-201f-48e3-854d-9c388c8c43d7","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":163,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"e5ab848f-3071-49eb-9f38-5e27b4b7b197","block_type":"box","text":"II-125","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b9f3e1f9-243b-4c67-b0a0-a46bf2dcd06d","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"33109a50-0be7-42dd-aa24-b9b898f1eeb4","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":164,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"758f5db2-6d4c-4268-9412-d97310d1f2d9","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":164,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"ee6b2f06-0045-4291-b979-fc020eabcb7c","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":164,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"5f3d3b5d-833b-42b2-b1c7-ec037b2037d2","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":164,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"09215c02-06df-4113-baf7-bb91b52f5e72","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":164,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"7b0b784f-4bed-4e47-a164-4ca1855a37d5","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":164,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"86ff5027-78fe-4007-ad2e-91915a048bf3","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":164,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"e4fd59ec-0f5d-4f78-8c7e-00bf763702fd","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":164,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"173dbdc6-4bec-4c43-9524-9dd81d129ad5","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":164,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"1f4b6f9b-d312-43e9-a33d-bca42102aadf","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":164,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"ad68e6a3-0931-4bbb-aaef-fec666beec50","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":164,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"8bd992e0-b4ab-4cba-af18-89b7a83d561b","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":164,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"3494923c-10b2-4606-a23c-74bfae7b14d2","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":164,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"4cb44df2-2b4d-49e1-a448-8af7a96c5240","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":164,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"30c211c5-8cba-4603-a96c-bd24b3ac0820","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":164,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"4caf5f6b-416e-4198-b8e3-be2e08beb7a5","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":164,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"eef9c9bd-a076-46a1-92d1-fc7ea70305da","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio with respect","page_number":164,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"307654df-db38-4932-8c16-7b2cb659d76a","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":164,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"cec536b8-1c1a-4cfc-bf23-2584cd36d354","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Portfolio, BlackRock","page_number":164,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"68f368cb-4dec-4b70-9a9e-4d72ce9398ac","block_type":"box","text":"is primarily responsible for the execution of the Master Portfolio’s portfolio transactions and the allocation of","page_number":164,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"4344bc69-73f0-447c-ad3d-da10d3eba60c","block_type":"box","text":"brokerage.","page_number":164,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"6fa9a57b-6866-4f81-9f7c-ba0d0e87df64","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":164,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"1e755164-d840-46a1-88dc-3e364e239043","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":164,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"d887ca1a-2371-43e7-8343-0bf34f51cc04","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under certain","page_number":164,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"0d8fbdbb-9553-4c50-85e3-1e1df41b99ac","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":164,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"79f4e7cc-fd4f-4de7-bb9a-e4ebe2e498d7","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":164,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"94577888-ed70-4dba-befb-1fb788f930ab","block_type":"box","text":"Section 28(e).","page_number":164,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"49eb7b4e-0c00-4078-aa06-d635d5817a98","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":164,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"bfde3b84-3811-4dca-931d-6a9ba636b2dc","block_type":"box","text":"brokers or dealers to execute portfolio transactions for a Fund; however, whether or not a particular broker or dealer","page_number":164,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"d056087d-f463-457f-b564-f4276b9d7402","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":164,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"65c3883b-bfd5-4c68-ba49-39a711e5c3cf","block_type":"box","text":"execute transactions for those mutual funds.","page_number":164,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"fe44f9c6-e60f-40b5-bf56-5cb023610ff4","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":164,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"a13e6551-7ccf-466c-9bb9-8fa68e81b5f3","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":164,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"2ebd77a1-8dd9-4ae5-b536-3d7c3597bbc9","block_type":"box","text":"in the form of depositary receipts, or other securities convertible into foreign equity securities. Depositary receipts","page_number":164,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"23e3f702-e702-45c8-80a3-9f6631166a23","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":164,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"b516a55b-4aa9-4dce-a231-50d3c0adad6c","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":164,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"6d3cca94-b81a-4cfb-b784-2e8f77402d91","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":164,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"08dae318-ff41-4387-9abc-6ddc9ba9dc3d","block_type":"box","text":"intends to manage its portfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":164,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"6b34a739-d730-4ac4-b356-4c3b5f4d3ded","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":164,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"7155f4af-8b89-4086-982e-6c521f5e9f93","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":164,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"a4e82be2-c169-4a8c-b16e-f3d4cbd006b9","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":164,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"cf8c68cf-3898-4e89-86b7-65376716acc2","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":164,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"4871b4f9-968f-429a-954b-e032f790676c","block_type":"box","text":"Each Fund may invest in certain securities traded in the OTC market and intends to deal directly with the dealers","page_number":164,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"b2ebaa3a-07ae-46b8-8d63-7e34ccf9dcf5","block_type":"box","text":"who make a market in the particular securities, except in those circumstances in which better prices and execution","page_number":164,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"cee16246-5091-42dd-957a-d72113589cd6","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":164,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"7ffe5cd7-95c2-42a3-8d56-1decac71798a","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":164,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"72d8292a-7807-4410-ac7c-fdf0c040baaa","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":164,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"cc4293c0-cc81-4a61-a1c0-a57a5b33edf3","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":164,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"e99422e4-00f4-4948-af69-e28761b884d8","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":164,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"b4c29928-b82c-41f0-8da5-f797b59da52d","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":164,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"bb575d2a-d231-4aa8-a401-0283fac36b1d","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":164,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"69070a99-0cd3-4402-b569-a42ef7d5f614","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":164,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"ed982e97-54c5-499b-96d6-2dd0d777fc47","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":164,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"e71df6cf-725a-4a7a-a7f3-d9c8b536f022","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":164,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"d2edfd95-8276-4d85-a6df-44e510cfaa4f","block_type":"box","text":"II-126","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6bc5bc2d-cfa4-4787-a766-47ddae6497f0","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f8c5cc9c-3bee-4aca-9297-4210c35153d5","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":165,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"15759291-dc33-4e52-a2cc-556953c53ff0","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":165,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"57f91b79-a59d-434e-a403-1e5b4b05acde","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":165,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"44138725-1fa8-4de6-ba26-b02832672783","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":165,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"70680ee7-8c53-4caf-8bcf-6bcfe244a0ba","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":165,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"15f0e7f5-e05e-4d59-978d-5fbd0508dcdf","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":165,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"9ab30e9e-83ce-4f0f-ab34-054086c1ced2","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":165,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"073e2fd9-93cc-4ff8-858c-65b0b3d3da53","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":165,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"87bf9104-a315-498d-9140-3e12d90798db","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":165,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"1b8153a9-83d6-4fd9-93fa-469bbb1b789d","block_type":"box","text":"with the rules of the Commission. As a result, the portfolio turnover rates of a money market fund will be relatively","page_number":165,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"0a0ec544-bd18-4814-a867-cf5230c28079","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":165,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"627b39ed-1dd7-4868-8c18-58306eec3f0a","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":165,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"7189f226-a16a-4f43-8cf8-dac3f231dd2a","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":165,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"0b55e00d-19f6-4005-be2f-fb3da019a957","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":165,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"e3981906-e4d1-4369-9674-d6cafdb49b89","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":165,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"6fec06ca-0288-4447-af23-765eac4791a5","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers","page_number":165,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"f2a843a5-d3b0-490e-8891-94e1f3baf366","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":165,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"31124f71-b318-4448-9007-b0598c2930a0","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":165,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"1262d39c-30e3-4bb2-b11a-f076db045142","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":165,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"e7156d74-13d9-4b05-b790-254125d0e871","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":165,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"1b3866b5-fe3e-44fb-8e90-b367776b1bb5","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":165,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"ce0be499-8831-4078-8f05-88428f9b66d5","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":165,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"290c4328-c30d-4998-a92b-9f986ef01031","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":165,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"da171dfe-ac20-4518-8756-9762d009af28","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":165,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"5a6f24a2-a1f0-4cd9-86b6-295ffe8361f1","block_type":"box","text":"These factors include: (i) investment objectives or strategies for particular accounts, including sector, industry,","page_number":165,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"8bd80faa-6480-4334-936d-a365baf62664","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":165,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"ede5bfb2-b62c-43a3-a057-2c2c83bf7080","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":165,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"ca51efd0-441d-44aa-a223-88e57aba94c2","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":165,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"6143b470-d7bd-4599-a4e7-02054174bc29","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":165,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"1e31a4a6-78f9-457e-9a69-950136bfd8e9","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":165,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"3f918fae-c4f5-4dc7-8830-df9aea39f9d2","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":165,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"9f7b2f45-bb02-4deb-a36e-ca843a234f23","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater performance compensation to","page_number":165,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"aa0f77c8-654e-426e-9a7a-063b520080e6","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":165,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"0c1006a5-4cb5-4125-91c9-aa1684c119b8","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":165,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"35336c1b-f538-41d1-b5a4-0536759c4f4f","block_type":"box","text":"or (v) to manage or equalize investment performance among different client accounts.","page_number":165,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"0fe66a19-b677-4194-97c4-2d2f4445a28c","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":165,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"babf8dba-8ba4-4139-9687-b07b7a92121d","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":165,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"30a03071-ef97-4745-b039-315e22de9ca3","block_type":"box","text":"accounts and compliance constraints.","page_number":165,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"ad6723ca-6e8b-4f7f-a314-662136c0a0dd","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":165,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"d21f05e5-b03e-446d-afce-d3a8cf4486bb","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":165,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"ffcca3d8-c417-4453-8312-c6f543b8f1d4","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":165,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"54722ee8-2c36-4a5d-a7c2-0d0377b1bd26","block_type":"box","text":"among client accounts over time, each portfolio manager or a member of his or her respective investment team will","page_number":165,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"967830ed-8ae4-4dc6-93cc-1b83a586b18a","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a particular offering with respect to eligible client","page_number":165,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"4c46a9f2-791d-4625-a140-e16f7593f764","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":165,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"db12b2fc-473a-424e-a754-a616bdcf8caa","block_type":"box","text":"eligible for particular client accounts that are managed by portfolio teams who have indicated interest in the offering","page_number":165,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"99473a38-51c2-4019-8b39-354c6b63888a","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":165,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"98ce10ff-6bc8-4a20-a159-cf9e9262475c","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":165,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"8c7ff309-627b-4bdd-b451-eb9a513e6c3e","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among participating","page_number":165,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"3d794c0c-c703-4f5c-83e7-7fabeeb1650d","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":165,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"e24d1681-1618-4e0d-ab43-b35da7d9217c","block_type":"box","text":"allocated among all accounts for which the investment is eligible, portfolio managers may rotate such investment","page_number":165,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"752ab4cc-3c7a-4f06-8549-8491a65bce97","block_type":"box","text":"opportunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":165,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"979f5c1c-6e6f-44e0-aaa1-8f634060b376","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":165,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"24cc80eb-fa4c-48fe-bad7-b79149fca548","block_type":"box","text":"clients may be used as well.","page_number":165,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"233d398a-bc36-4822-944e-9b3ff9bc2f95","block_type":"box","text":"II-127","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3f7a8e4c-cef0-462b-852e-53b8774683a3","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b524d416-7131-48c0-a0a6-9df0da7e7c17","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":166,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"53ab7526-acd2-47ca-b777-312f3b84bae9","block_type":"box","text":"the same securities at the same time for different clients based on the particular investment objective, guidelines","page_number":166,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"1e5f6eb7-da9f-440b-9d09-b4ee267fcfd3","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":166,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"fc5a0f5f-6a27-4ef1-a74b-2ac0b469eaaf","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":166,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"77d8df25-0fda-406c-b5b0-24a2daf51278","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":166,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"9fd1f1a2-5855-4aab-bfab-55c02a416ce1","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":166,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"da7f61bb-c8a6-44af-b6a7-ef2acd2ad3e1","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":166,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"89795abb-8328-4914-a011-fc247e2169a9","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":166,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"4dda45cd-4f43-45a8-a398-b5ab1752c2f1","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":166,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"c94e0e15-171b-43ec-be90-1b99663fdf45","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":166,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"7ef6c1a9-cb86-43f7-8f48-9616039ac69c","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":166,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"1b7e30c1-83d7-4b1a-b404-a05949e1145c","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":166,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"36fae9d7-c0ba-43b3-af28-da11e7f731d7","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":166,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"0bfd5149-7832-49cf-bd6c-bffca97a0893","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or investment team","page_number":166,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"66aa0c3e-c1aa-4ae6-9ab0-7d48a71e9636","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":166,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"225dec5c-3552-46f3-98bf-1a61c7f9ac14","block_type":"box","text":"opportunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":166,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"86091279-2384-4270-9151-abea9cd34371","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":166,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"2c5eddaf-787a-4397-bc51-42121e850ee3","block_type":"box","text":"particular portfolio manager or management team is filled at several different prices through multiple trades, all","page_number":166,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"69750e16-3f7c-4d60-ae9d-363bb5f56e26","block_type":"box","text":"accounts participating in the order will receive the average price except in the case of certain international markets","page_number":166,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"d39a60a4-6c56-4b1a-86af-9fa4232738ec","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":166,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"8f0fedcf-5d22-481d-ab88-30fbd0503164","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":166,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"0ee42d82-d506-4910-a030-33016e1fb664","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":166,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"2efbf35c-ff92-49d5-b72f-4341da32d9b9","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":166,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"4d22d86c-1e65-49d4-b772-a704e0a84217","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":166,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"3094438d-ec52-4269-be84-c303125b5406","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":166,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"e531834e-97cb-479a-9e27-d3d89f9ee30b","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":166,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"123eb791-98dd-4f0b-80fc-007180e79b25","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":166,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"2db680b2-f466-496e-8589-92551a33bcbd","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":166,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"d98f95bc-5165-431c-9a19-135bc1d74190","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":166,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"f46b1761-1855-43f6-9295-e996993bb738","block_type":"box","text":"Investment Company Act. In no instance will portfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":166,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"f99f5c88-9238-4c9f-a47b-542d7dedf832","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":166,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"ca06caea-e8f4-418e-bf58-7e53a8ba298e","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":166,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"55cb7388-43bb-410a-87a0-155882d8aece","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of portfolio securities of a Fund and","page_number":166,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"f554b477-6e7a-47f9-9952-61424d8b30cc","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":166,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"e42060f8-2bf4-46bc-8afd-6e66059fa9b9","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":166,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"07873737-d828-41bd-985d-7ed873274fc8","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":166,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"fd928a68-367f-4e33-95d1-1ba50b14f022","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to participate in volume","page_number":166,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"83de16ea-ddd0-4fb1-b6d3-6294f7bb804e","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":166,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"fa57eb0f-a24c-49e0-8d00-2259e32eb3f8","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":166,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"2f374173-a3dc-429d-823d-70341b622fca","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":166,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"e183ff70-711d-431d-a92f-372b34ae3831","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":166,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"070bea97-f527-4e87-b51a-c8cee2d9ee25","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":166,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"22cb0682-4e91-4dba-b98d-b1b720681c05","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":166,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"1634a313-d4e5-412d-9311-6719a97711d2","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":166,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"9fb63e05-9bdb-4bba-b935-c05a841fb06d","block_type":"box","text":"Portfolio Turnover","page_number":166,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"e87c9896-c6fd-4261-bd99-bc316f79205f","block_type":"box","text":"The portfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of portfolio","page_number":166,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"ac4c25d7-1488-4184-85f8-aa4e9fdc96f0","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":166,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"31722ec2-fa14-492b-b441-fe91f5b3e410","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the portfolio during","page_number":166,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"b7b2dc58-ede2-4103-a828-7ef3cecb899d","block_type":"box","text":"the year. A high rate of portfolio turnover results in certain tax consequences, such as increased capital gain","page_number":166,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"f94dfb9d-f50e-48ed-8707-965944a9d43c","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":166,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"46b4de86-ef45-46d6-87d5-0ada378fd223","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":166,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"5e404ec9-2e98-49a0-91a5-1c9a5340a1cf","block_type":"box","text":"II-128","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bbf4ca1c-4dd8-4b44-90ab-436b77e907e0","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"83802050-10cd-4273-a9f2-60898e204458","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":167,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"d4353a7e-1bbb-4991-8f63-cc193a235f46","block_type":"box","text":"Dividends","page_number":167,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"bb5e63cd-45a2-4af9-8f27-e0301b3ad6de","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":167,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"f5f19b73-e8db-4482-86ba-1d6bb2bc988c","block_type":"box","text":"investment income are paid as set forth in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":167,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"c429e3a6-632b-49db-abbd-91d82eb12b48","block_type":"box","text":"realized capital gains, if any, as set forth in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":167,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"cd02b122-9e16-4f56-a3b7-c12b9e70d455","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that certain","page_number":167,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"ddb3b84f-7fbc-45c0-a74d-5d4dd2e41140","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":167,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"b9d56af3-0558-4685-8ebc-33882b9b85cb","block_type":"box","text":"net income from certain foreign currency transactions, such income will be distributed at least annually.","page_number":167,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"b6dbe526-14aa-4f61-8b1e-a0d05fba641c","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":167,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"45d87216-769f-4f88-9edd-299b576ea3eb","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":167,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"ea6e7791-dc2e-4f83-a758-05bd486fba2f","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":167,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"c5d0988e-347f-48e3-a44f-e271ce73d5f9","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":167,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"95195fb3-a541-4888-aaa9-9e9312a314af","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":167,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"c0eb9325-ab95-4faf-85e9-f029831ba357","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":167,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"0d8c2427-ee7e-4ad4-90b6-d7ef02232ff5","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":167,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"2eb48457-076e-47b5-a666-a90c89f8dcec","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":167,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"82215f4c-2362-4969-a03a-0b6c8c3dbf68","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":167,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"9b8d0e58-bd36-42f4-8fae-500fc730a636","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":167,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"f31272fd-10b0-4936-9a95-7c1bb75a78dc","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":167,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"b6377335-fe3f-4e73-8e73-5500115ab0f6","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":167,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"dde205d6-45b8-4e4b-a96f-06f8e8b2c623","block_type":"box","text":"Taxes","page_number":167,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"37d8b579-4a7a-4f34-93ff-b7c3acbf504a","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":167,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"f1809f96-1cc3-4f1d-93ec-e1558942ce24","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":167,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"da2f0e93-33fc-45d1-baa2-6d86f3c894ce","block_type":"box","text":"U.S. federal income tax on the part of its investment company taxable income and net realized capital gains that it","page_number":167,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"9a5325dd-d144-40b3-996c-210fb49bfb60","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":167,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"4d4ad7e9-a5b3-4444-867d-74f986622a6c","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":167,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"c4ee4ce1-971a-4dc7-a498-8b20a8fdc366","block_type":"box","text":"company, a Fund must meet certain requirements regarding the source of its income and the composition and","page_number":167,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"fff51130-d399-4c1e-b638-3fa46938ddea","block_type":"box","text":"diversification of its assets. See Part II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":167,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"7a2f5a40-ecb7-449b-9d50-e7453fab42b4","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":167,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"2dbcefba-072b-442a-9f91-2175a29bc2c0","block_type":"box","text":"underlying assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":167,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"4059610d-2b6b-4ded-84d5-59e68410ca55","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":167,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"eb46f688-894e-4126-a391-c0d35577612f","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":167,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"f0b99996-9f09-437a-a08e-d968069c708e","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of certain assets, or by","page_number":167,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"5d39064d-c134-4eea-acd6-34c2b9cecfe5","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":167,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"9441ecd4-a7b5-4146-b505-85b89835acc7","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":167,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"1dae0938-e2b9-4bb9-85a7-e4705cfc3f45","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":167,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"4fb839c9-8de0-4669-b171-e36db5d3ca62","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":167,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"61528684-e17b-46b2-9d9e-ac10b3cef1b6","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s","page_number":167,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"d99fdfb8-cebd-4cdf-acb3-c0b65f3ba2e2","block_type":"box","text":"investments in partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject","page_number":167,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"d046dee3-f80c-4649-be2b-a1b6ea5326ec","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":167,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"87d9a19d-d26f-443e-8685-7627a45472b2","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":167,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"97ded542-87ce-412e-af34-c921f103c6ef","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of certain relief","page_number":167,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"30212244-d669-41eb-a2c2-799af8a5dacc","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":167,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"9df243b2-65ec-469a-8bbc-656ed33ce433","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":167,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"5e81cf5c-67a7-40d3-a2ad-75f6b39f8181","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":167,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"311180fc-65b5-4a04-82ee-e5d37979d97b","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":167,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"c683d257-86d5-4850-8cca-d3e4984ee698","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":167,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"19eea331-8c29-4740-b970-c8d20ccb15e0","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":167,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"b52cd504-8618-47c0-bdd2-2a898aba0fec","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":167,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"c19387a6-75d0-4bd9-a794-b431f1049ef7","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":167,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"59f4ce6b-5b48-4674-b248-d9428cdb9c8a","block_type":"box","text":"offset gains in another, and the requirements (other than certain organizational requirements) for qualifying for","page_number":167,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"f4d93bc8-5bae-4412-9ca5-6600ea6b2786","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":167,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"50926dcc-19d2-4828-9156-349ea18493ea","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":167,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"f0f682bd-446b-44c3-9944-9ebed6016d5f","block_type":"box","text":"II-129","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4a4dd2d2-174e-47e7-a9ef-4501f84342d2","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8669c23f-0605-4708-8e05-df876a512456","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":168,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"83a2bf91-cde4-443b-8f5a-794d9949b2c4","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":168,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"d04739ab-576d-4915-82ad-1612a109bb5d","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":168,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"2167200e-afad-44ce-81ca-551195df9ea7","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus certain undistributed amounts from the","page_number":168,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"43581723-91ba-4705-b968-045dfa4df220","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":168,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"c9db6303-ed78-4776-8c13-f66ca17ab157","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":168,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"cb377cc3-a512-474a-a1f9-79ab189576c4","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":168,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"1d3d740b-5b11-4878-853a-91c621884ad0","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":168,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"c2a999bc-2c21-4676-b8d0-dac53a1e0c3d","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":168,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"ea64150d-67a6-4aa3-b54a-dc58da24d000","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":168,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"13adab17-326c-4ea0-bfdf-91af3f3c1146","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":168,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"f85b1137-3cc7-4709-81e3-b8a71f9e4efd","block_type":"box","text":"limitation.","page_number":168,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"f3aee112-1672-46ca-bef3-f796f004be3b","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net short-term capital gain over net long","page_number":168,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"d3fcf26d-7879-43fe-aa18-4f23793b42ea","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":168,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"63b38014-8a01-418c-a7bb-0bcfdae966dc","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net short-term capital loss (including","page_number":168,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"70eb6be1-a162-4e01-bf2d-43108ba1dbe7","block_type":"box","text":"gains or losses from certain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":168,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"566af645-c7ff-4f9e-bff4-2366ce5bfa29","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":168,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"89a6c838-8cf9-4286-a979-fc0d399dfa27","block_type":"box","text":"Distributions paid by a Fund that are reported as exempt-interest dividends will not be subject to regular U.S. federal","page_number":168,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"b26d3752-4cb0-4169-a62d-e730d2af85e1","block_type":"box","text":"income tax. Certain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":168,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"67327cc3-375b-4f81-b3f5-969608131176","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":168,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"535713fa-2c2c-43c6-ba88-cb66a8ecf050","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":168,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"a5ac2eb4-1f45-4806-a18e-152e1cce9ff0","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":168,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"a8d32013-ec2a-44c9-ad30-06ccaf7be19e","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":168,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"14ce1378-38d9-4c26-9069-b33407a403cc","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of certain","page_number":168,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"b3fe7b58-ed63-409a-ab14-fcbf23b64eda","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":168,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"e76ca3ef-efc3-4b14-87c3-46c6c9796fc0","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":168,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"7663384e-e468-4610-b2b2-010b5d78abad","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":168,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"d0e9c429-982b-4015-bf65-2c68deacdbdd","block_type":"box","text":"are derived from income on debt securities, certain types of preferred stock treated as debt for U.S. federal income","page_number":168,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"ba59dfd9-0110-4291-a216-34defc6c9ea9","block_type":"box","text":"tax purposes and short-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":168,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"ef3442fa-3ce4-4e10-a240-c90def5dc53d","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":168,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"3b6b56d9-70de-40af-973a-f72d26a352ec","block_type":"box","text":"constitute “qualified dividend income.”","page_number":168,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"44af6a91-65d9-4afe-aba7-dbbe22e537b6","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":168,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"d9eb9309-c177-4b04-813a-fcce10834cae","block_type":"box","text":"proceeds) of certain individuals, trusts and estates.","page_number":168,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"407482a1-9e01-4745-a720-3cc3440d378c","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net short-term capital losses) is not","page_number":168,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"264c4a2a-9191-49e4-900b-801189c4a202","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":168,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"9c485d6b-3bf8-4b5b-ada7-a79303611cf3","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":168,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"dd8e361e-7499-4dfa-91ff-f090c7220b75","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":168,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"8c823bf9-16ce-4a1e-b649-d4c280f9abdf","block_type":"box","text":"income, as long-term capital gain, their proportionate shares of such undistributed net capital gain, will be deemed to","page_number":168,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"d9460f74-0237-4dfd-a5a6-678f32841f0e","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":168,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"a5c82b7b-7d44-4fb0-b860-2f2c2214ef5b","block_type":"box","text":"exceeds that liability) their proportionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":168,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"1a7452df-cfd0-4336-ad7f-917d3e2222c2","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":168,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"19905f32-6754-42f9-9950-fb60ca1d0f78","block_type":"box","text":"against their taxes.","page_number":168,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"0490bf24-c39d-472e-aef2-9f660057c8c1","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":168,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"1864e8f2-158e-4afa-8fec-9a2aa72b23ab","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":168,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"915059cd-e413-4f1b-a79e-b7d2814be469","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":168,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"6b287060-2411-44ae-9742-e43a58f79508","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":168,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"ff4b47e9-91f5-45a8-b7e8-604a30b58dfb","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":168,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"0dccde36-cc1a-434b-aee9-8cb7ce5837b1","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":168,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"32d39975-84c8-4387-9aac-f2643715ed99","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":168,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"23987237-dd9a-49a0-8974-572834f97420","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":168,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"436095c2-9325-4aa9-885f-881189a0fce9","block_type":"box","text":"dividends received by the shareholder.","page_number":168,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"d74e324d-78a3-48d2-8164-5ee2cf3e7a15","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":168,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"5b2840f1-cb99-427d-b7b0-3b2b045be3d9","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":168,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"9eaaecc4-9346-44f1-a34c-ea69de36559d","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":168,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"9c9361ae-1ad3-4c67-a49b-f048dac818c5","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":168,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"bd9e026a-6643-40a2-9782-7b69304b4926","block_type":"box","text":"II-130","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"29caa9d5-f452-4f85-a7ca-dfa67dd046cd","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"307faf28-810f-4ac9-b4d5-cf9be9c51f0b","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":169,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"5c52dbb5-9f23-403d-a5ec-a8b8aefaac2e","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":169,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"11bffffe-2749-489e-ac82-67124bf888fa","block_type":"box","text":"calendar taxable year, if the Fund reports more capital gain dividends than it earns in such taxable year, then the","page_number":169,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"2b59a832-a9c0-4487-853b-8762eff5314f","block_type":"box","text":"Fund will reduce the amounts reported as capital gains. Where possible, such reduction will first be allocated to","page_number":169,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"9dfeb814-b76e-44f0-b21c-4c536d31713f","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":169,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"8916a591-700a-4a7d-a82a-5660a1d2b875","block_type":"box","text":"taxable year, certain net capital losses arising after October 31 of the current taxable year, and certain net ordinary","page_number":169,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"5d619a26-698d-4369-aa10-d22c8b0f27b7","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":169,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"2a0a3387-c1b4-4c3f-ad9b-94999d8c6d2d","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":169,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"291e6b41-6ad4-40e8-b699-46fa53c39d0b","block_type":"box","text":"taxable year.","page_number":169,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"2961bf26-a40e-42bb-9e8c-3f16250cd2a8","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":169,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"6470f56b-d787-4c67-b69b-da4f7cd9f097","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":169,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"7aaa00f6-7b80-42a7-a2ce-bfb7183941ce","block_type":"box","text":"basis in the converted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":169,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"a77dcc41-aef4-42d8-8628-edc3c1ad1b31","block_type":"box","text":"holding period for the converted Investor C Shares.","page_number":169,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"be226eee-98eb-4c04-a1fc-bf10abb2f4e0","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":169,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"421d2dfb-3cc4-4474-b6fc-bcb097233d2c","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":169,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"cca8cece-1275-4657-881f-c7ece63a792a","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":169,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"9639e16f-a167-4ac4-b475-dcfd3bd2329c","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":169,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"1995caa0-93f1-46ed-807a-ad3b742391a3","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":169,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"370498a9-face-4583-b5b0-0030d492d26e","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":169,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"fe2ec5b4-7d13-4d26-b169-119f7e5f8012","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":169,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"4d4eb202-bff8-415d-8838-75d6181c3cd8","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":169,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"d0fc15a2-93e4-42ad-b904-e9e93278634f","block_type":"box","text":"generally be treated as short-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":169,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"3f7e4373-a32e-452e-bcbc-74ae69e2c8b3","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than short-term capital loss, to the extent of any","page_number":169,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"52784efc-cb6b-425f-a04e-562c69538b61","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":169,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"2f8bf2a3-1b07-4fed-9245-3a89c37e6ec8","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":169,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"4f3bbdbb-9260-4644-91da-7f848687d36e","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":169,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"c8b0dd53-cdfa-451c-9081-85e723526a9d","block_type":"box","text":"special tax rules that apply to their investments.","page_number":169,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"076df8cb-e72b-4ac9-bbaf-cb7db0e63dc9","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":169,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"469fe179-4d0f-4c0d-b6cc-eba13372a49f","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":169,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"20a5d8f4-5935-4aab-a8ce-fc130ace4512","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":169,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"1934fbb2-19b7-45af-b340-dc91c8acb5d7","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":169,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"af60d1a6-7db4-4075-a258-65d24a1eca56","block_type":"box","text":"A Fund is also generally required by law to report to each shareholder and to the IRS cost basis information for","page_number":169,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"cda98940-a3c4-4dac-8eed-5d6ab9d0d707","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":169,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"740124f9-5484-4bfb-a367-0045cab6a085","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":169,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"9dfa0143-75a3-41b8-be87-09417512c872","block_type":"box","text":"long-term or short-term. The adjusted cost basis of shares will be based on the default cost basis reporting method","page_number":169,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"ba4efa40-27a3-4733-b3fb-7bc9d71f82fc","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":169,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"961422ca-d461-451c-b5a5-b36d616e203a","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":169,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"bf62a6ed-820d-4149-a0c7-fce88c1c587a","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":169,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"a6af9275-713d-4de4-b536-82ce2698e278","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis reporting","page_number":169,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"1e8e9762-9ae9-4a95-a7d9-2a351e1259a8","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":169,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"41068a24-b350-4e0b-a149-234d13a86545","block_type":"box","text":"apply, but the Fund will continue to report to the IRS the gross proceeds received by a shareholder from the sale or","page_number":169,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"bee7795b-80c3-4dac-b545-1d5d2f66ca4c","block_type":"box","text":"redemption of such shares.","page_number":169,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"34845b7b-299f-4cdd-a7e5-2c2520f1e5bb","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute portfolio securities in kind for the","page_number":169,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"4ac69b7e-10a3-4c05-a550-d4074b15911b","block_type":"box","text":"purposes of portfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":169,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"92c6b52d-b033-4d8e-8d72-31142535c328","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the portfolio securities it distributes to the redeeming","page_number":169,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"1e8763ec-6985-400e-a0ee-62bb51c796fa","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":169,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"a87203bd-870e-429e-bddb-8bd970b23f7d","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":169,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"b44fcc11-d719-4f0b-88c5-9ca7302eb0e2","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":169,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"af2bb64e-0971-4cad-a14f-eaf68021e0b4","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":169,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"8084cbdb-263b-449b-8afd-94a1da5d42b0","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":169,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"76ff5abe-9db9-492d-bff1-c88f50354682","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":169,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"c4f64fa6-b828-4aa0-b1f4-e9dd118b18c3","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":169,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"29463012-9e6e-44d0-abea-d635e67af0e9","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":169,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"f6ff07f9-d218-4984-853f-845f7cb65a92","block_type":"box","text":"realizes from its investments. As a result, a larger portion of the Fund’s distributions may be treated as ordinary","page_number":169,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"e2a28edc-593f-4982-aaa5-5af459740bf8","block_type":"box","text":"II-131","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c76fc6bc-fdb9-40db-b1d5-1fa6fb270318","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e27cd8fd-46a8-4162-b591-0e87484d051c","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":170,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"c924b462-dea3-4314-9396-3b9b79905b9b","block_type":"box","text":"(and, for purposes of the 4% excise tax, certain other dates as prescribed under the Code) are generally “marked-to","page_number":170,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"dfdd388b-96ac-4556-bc2e-7f05a6570e94","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":170,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"8d6b83c2-3137-4a7a-acaa-1861d6dfae02","block_type":"box","text":"considered 60% long-term and 40% short-term capital gain or loss), which may increase the amount that must be","page_number":170,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"2b2b6709-aed9-466b-8658-102a7d9b2704","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of certain","page_number":170,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"e964815c-511d-4909-9df3-a6c0c7f56ebe","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":170,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"34de763f-6135-4be2-81eb-fc123e78055a","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":170,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"401d7603-c21f-4178-bb98-f003130a389a","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":170,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"7a369c7b-7d07-4671-aa1f-6ceed56f6236","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":170,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"e2bf0cd1-7bd3-4054-8894-0a5a12687439","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":170,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"1f8fa7ef-d5c8-4cf3-883e-6cfce5f0155b","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":170,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"a9adfa94-8667-4481-8fec-5a04f9839bcf","block_type":"box","text":"on a section 1256 contract is treated as short-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":170,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"2ddaaa4d-283a-4508-88ae-75ba148cbed6","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":170,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"0ed7a6eb-386b-4c43-bd1d-6a5ddb77167a","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":170,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"6c730cef-0390-4422-afe2-c3f88c85d476","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":170,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"4ca28eca-942c-40f9-b88b-0674f5d6f490","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":170,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"60da4960-07ab-46e3-b7eb-cbe3fddfb2c8","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":170,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"bf3fff1e-8475-4a4a-8738-9b4c2d00a473","block_type":"box","text":"Certain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":170,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"c7ea6922-ff37-48db-b783-b1ff08cec577","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":170,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"f34456e1-69ad-4b4b-a0ae-467d5cfff38b","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a portion of the excess of the stated redemption","page_number":170,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"fbfbe87a-2193-4ba6-b4ef-a7bf6ee0e465","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":170,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"16875be7-b66e-4d04-bfc8-b26f47d6004a","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":170,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"aa82a34d-4734-41da-b85f-8a02f4ff1764","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":170,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"4493d5b9-d3a1-4f7f-ab0f-77db11fe9e09","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":170,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"ceace6fa-a4c4-4db8-95f6-ffc7c199d1d9","block_type":"box","text":"currency denominated or referenced debt securities, certain asset-backed securities and contingent payment and","page_number":170,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"002c2059-4bf2-4212-9d85-78705768ed29","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":170,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"4dc063e5-9d51-4785-96a7-3e444afd6275","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":170,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"a69974cf-48fd-4ee0-b909-08e627460a1d","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or certain foreign currency options, futures","page_number":170,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"6e52a1ff-efc7-4f07-a3b3-7c08f146fa5b","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":170,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"775cc135-b452-4616-bc5b-5ee715c74645","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":170,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"cecb3c01-e84f-4e2a-8686-000629c49e73","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":170,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"c1e061c3-0810-4137-9cb0-43d11366c9eb","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":170,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"6b78289b-10d4-4e9b-b4da-4c28fe12c7b7","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":170,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"f2130b2b-9e4c-44f6-a3a5-40c89a7eb660","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":170,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"eaee7148-b594-4661-a71d-0aa2846eea59","block_type":"box","text":"in subsequent taxable years.","page_number":170,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"f9a34bcb-eace-431e-8972-6f99c8a3358b","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":170,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"96d460b5-61da-47d7-8e9e-075cb16f795f","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":170,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"548b3323-b5c0-442f-89dd-3a60f2912996","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":170,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"c14ccdad-696a-46e4-9cf1-58b6ed634874","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":170,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"0a8a4e96-32e6-467e-8147-31c14fac2a05","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly reported as capital gain dividends, generally will","page_number":170,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"2b545584-dfb3-4b37-8f41-ece47e457229","block_type":"box","text":"not be subject to a 30% withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":170,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"da55d98c-f5cb-4b99-862f-a5d5fd059482","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original issue","page_number":170,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"8c6d30f2-dd35-4c01-96e2-5c124ff50083","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":170,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"c4f3f01b-e69d-40d6-ad48-ebfdd4d33f4f","block_type":"box","text":"extent properly reported as “short-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":170,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"b60a9a58-e355-4a45-b9dc-8395147fbda3","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to report such dividends as interest","page_number":170,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"107a2b32-39aa-4fce-a2ec-a90eeb67ef0e","block_type":"box","text":"related dividends or short-term capital gain dividends. However, depending on its circumstances, a Fund may report","page_number":170,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"49e408d6-2982-41bf-8e70-f46a64165681","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as short-term capital gain dividends, and/","page_number":170,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"e69d04c1-cc5f-4c22-8359-5e954844b602","block_type":"box","text":"or treat such dividends, in whole or in part, as ineligible for this exemption from withholding. In order to qualify for","page_number":170,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"16113d61-07ac-47f7-bdcf-2e5a27e8460c","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification requirements","page_number":170,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"76469b57-0086-4ca6-9c92-f041742361f0","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":170,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"0aa864cd-b566-485d-90d8-35f99b3a82af","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund reports the","page_number":170,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"626aab75-df03-489b-a4f2-2a7378b3d75e","block_type":"box","text":"payment as an interest-related or short-term capital gain dividend. Foreign shareholders should contact their","page_number":170,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"807d3466-cb95-4a90-ad2b-7578a5d6af10","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":170,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"c45f8669-c9a4-46d5-ac43-c6b8ab0597f9","block_type":"box","text":"portion, if any, of a Fund’s distributions will be reported as interest-related dividends or short-term capital gain","page_number":170,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"30c4e03a-8da8-4c6e-8da4-63a921cb7e9e","block_type":"box","text":"dividends under these rules.","page_number":170,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"7ade99bf-3d9c-4d0e-9ead-4c1ce810e60c","block_type":"box","text":"II-132","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6d6fe4ab-1ade-4e42-9ffb-bc19a0a9899b","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c2b5161d-ae97-4181-887b-12658ccc631b","block_type":"box","text":"Distributions to certain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":171,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"47501098-6be0-47b3-b8fa-0dcf3284dc5b","block_type":"box","text":"property interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":171,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"931874a6-2cf7-4761-939a-16003b7bff2c","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":171,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"5032518f-1b88-4fb9-a66a-c117ea0c6939","block_type":"box","text":"real property interests (including shares in certain “U.S. real property holding corporations” such as certain REITs,","page_number":171,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"9893e8de-d9c6-4abd-8234-a23a3a89b9b0","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":171,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"143f242b-8909-4176-99aa-b267c9c0a38a","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":171,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"dc4f6067-3454-45ff-b86c-ffb91dd57cc7","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":171,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"7c5cc8ff-23ec-45d8-8814-cb9ac3ada47e","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":171,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"169a0294-a4ff-4ff2-8895-53111c4a6570","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":171,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"fa478b63-ef13-45ca-917f-3aa80a461ebd","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":171,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"33dcfbc8-51b6-47bf-b7ab-2e463fc1c1f9","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":171,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"941d006a-72a1-4bd7-bc6f-5dd2cb2ce9ee","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":171,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"efff1c59-f23b-4ffb-90f5-fb5ea92353b3","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":171,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"57869efa-fc84-40ef-9c01-5f805a1c7264","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":171,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"a6455728-777a-479a-be07-fa7ef39c25f8","block_type":"box","text":"sales or redemptions of shares held by certain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":171,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"d0cbfd20-f8e7-407d-9d42-c6579247d200","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":171,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"21f134ef-faf3-4638-a1b3-a43d91f9714b","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":171,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"9e61c939-7a70-4337-a0ad-43c15239ced5","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":171,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"10a86de3-d37b-482b-a609-f84748017542","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":171,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"f86420b4-c5f5-4252-a1d9-4f6d03a39d06","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":171,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"6e1ac7c9-e902-433d-a73c-cb594553ba14","block_type":"box","text":"distributions made in the form of U.S. real property interests (including shares in certain “U.S. real property holding","page_number":171,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"711e6be5-f585-436d-a5e0-c4dbf05ec6b3","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":171,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"f56c53c6-6cba-4738-b97d-fb9b74af9582","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":171,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"550dbcef-5ec3-47cc-8110-c64766941f6a","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a portion of any","page_number":171,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"45ab4aad-3f2d-4392-aee4-20801185cb11","block_type":"box","text":"unrecognized gain in the U.S. real property interests equal to the product of (i) the excess of fair market value of","page_number":171,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"e167231d-c01c-4a78-80b0-d79e6cf66766","block_type":"box","text":"such U.S. real property interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":171,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"b626ad94-5c7c-4e67-a8d2-aa72422c419b","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":171,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"d2c7b443-ef2e-4844-8bd8-d5129bb1bbdd","block_type":"box","text":"A foreign shareholder may also be subject to certain “wash sale” rules to prevent the avoidance of the tax filing","page_number":171,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"e9e65238-8b6a-412d-9d01-d88886dd4c21","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":171,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"3c505bb9-1943-4b20-bbe2-4f04cdc2267e","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":171,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"6e755967-c82a-4fbc-8607-94e29687812a","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":171,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"0a749f55-eff7-48a4-9780-3ff81f14c965","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":171,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"151e6736-9ddc-46c8-aecf-9dd232965267","block_type":"box","text":"items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other foreign entities. To","page_number":171,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"9e42afba-0bb9-4a33-8498-c9db4c44a080","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":171,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"7b58d520-f1a3-410b-8eaf-d2d587012e35","block_type":"box","text":"report to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":171,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"13154688-1000-48e1-a543-5f3c6e54b950","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on certain payments made to noncomplying","page_number":171,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"38eaa5b8-2984-4839-bf3e-94e7d8054138","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":171,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"92546b41-96e7-46ae-9c28-a03c1afcc41b","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":171,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"f65cf98c-aeb4-4151-9ef8-28a7873ae317","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or certify there are no such owners.","page_number":171,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"f08effda-4bcd-45aa-bbb1-c62808b3eaba","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":171,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"f5832e41-d20e-4938-83fe-52b9e2ab6980","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":171,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"74ce286a-7551-4bdb-9e1e-b9bff612c99e","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no certified taxpayer identification number","page_number":171,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"4e06e0b9-ac36-4d70-906d-6318d67d4e04","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":171,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"fceb3dbe-ac90-4582-93dc-4ae7cbbdae81","block_type":"box","text":"account, an investor must certify under penalty of perjury that such number is correct and that such investor is not","page_number":171,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"86943e66-59da-4ccb-8266-5a1a11aabf14","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":171,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"b81f116c-2875-4e62-8bb6-1a770ef03ea5","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":171,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"9d3d18ab-575a-4ead-a202-5d2f214555b3","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":171,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"2c25e2d8-2ad6-4c04-ace2-38028a31c7ce","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":171,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"aca1c7ac-848b-4ab7-9bcf-9f1fdb671ccb","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":171,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"52fab1c9-45d9-487a-8d70-2fa71333865a","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":171,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"876592d9-b0db-4cfe-a9a2-a21f9d0dab01","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of portfolio","page_number":171,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"e9a72983-ed6c-4d79-bc51-13b1da58bced","block_type":"box","text":"securities are in many cases exempted. That a loss is reportable under these regulations does not affect the legal","page_number":171,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"49ea8f29-e444-4f07-934f-c887f81a099c","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":171,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"77933193-91c5-4a50-99dc-b90ff0a27e4e","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":171,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"b3169b02-6307-4abb-8f58-f1061482e6eb","block_type":"box","text":"II-133","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a9b23725-0be0-4505-a0bc-b99d8a2474e0","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ea6124d7-f81b-4856-bcc2-c97d898cb7f6","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits, taxable","page_number":172,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"7b900fb7-6765-4ba1-b469-e811001374aa","block_type":"box","text":"mortgage pools or other investments may cause the Fund to report some or all of its distributions as “excess","page_number":172,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"3cc8d2a7-7e5e-4d4a-a590-23bb5dbc3ee2","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":172,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"d8d1d4c1-bc22-4064-8af9-bcb2d872262a","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":172,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"3f54f7dc-3b9d-4b8f-bf94-f6069dfded0d","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable entities; (ii) not","page_number":172,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"cdd0f08b-2818-4ec0-9d82-45f4dc399196","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":172,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"5c1c9368-f775-4abc-9d20-10ff13ea8e99","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if certain “disqualified","page_number":172,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"640f1809-0d2e-4f82-97af-9e5822ad0fac","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":172,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"36236271-d88e-427b-bc3a-8557db413a62","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":172,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"d9a4daf6-4c0f-4ab0-9caf-ef5ee95ae662","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":172,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"9f427ec0-fb0c-4936-b8e1-111a439d77cb","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":172,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"a749bfde-7c23-4d25-bb37-591690093a4b","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":172,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"ff4d3944-19b4-4e2e-b30f-38001b5e0e5c","block_type":"box","text":"investment opportunities.","page_number":172,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"dd199acd-7ffd-409a-8389-8b5a8e1245c5","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":172,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"cf1a1d9e-b5c0-483b-8c56-0ff93ddcf335","block_type":"box","text":"imposed by foreign countries. Tax conventions between certain foreign countries and the United States may reduce or","page_number":172,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"baedec15-b706-4e55-8522-ca4c8c6a709c","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":172,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"a439f4bf-af12-47b7-8bc8-9ce5bf074441","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":172,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"1d925861-d02f-4655-a1f7-1e4b7879f773","block_type":"box","text":"Fund, subject to certain requirements and limitations contained in the Code. For example, certain retirement","page_number":172,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"86164761-54ae-499e-9d77-2b95a6c7d4c9","block_type":"box","text":"accounts and certain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":172,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"908bef99-9f69-4ff0-9ecb-3fb2962472b9","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":172,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"fcd2e14e-1488-48f4-8842-336611e93533","block_type":"box","text":"respect to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":172,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"e4840426-d94c-440a-bfb3-e2d584ccb5e4","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":172,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"cfc15cc2-803a-4062-885e-1198ea72aa3e","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":172,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"94eb4c5f-132d-4c60-a512-e1d5426b2ef0","block_type":"box","text":"the Fund. Further, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":172,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"9efa5c71-0d54-4d87-8e0e-04f6155a166c","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":172,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"42b1f5b3-a098-40c6-a343-b49ceb16d89c","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":172,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"a260b2d9-5dd5-4326-93f8-5c877f16f513","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their proportionate shares of such foreign","page_number":172,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"068d9f0c-1acd-481e-8bd5-6faa8842157f","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such proportionate shares as taxes paid by them, and","page_number":172,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"37043691-77b8-4230-9835-91031aeec17a","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":172,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"8a38faef-85bf-4458-8a44-409f737be578","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":172,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"25e96a7b-d194-4683-b7c6-ab0f08847350","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":172,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"5254e972-46da-4922-9516-6cbe61eb6ff2","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":172,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"edf319d7-0ffa-4282-ac0b-ece8252eaa16","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":172,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"1fdee1db-a4c6-4e4a-8b5f-ba2de7860446","block_type":"box","text":"having been paid by such shareholder. A Fund will report annually to its shareholders the amount per share of such","page_number":172,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"5008a3fe-6380-4af5-a39a-635538c53e5a","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":172,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"fbfcd52a-d70b-46f7-acc2-30c7c7dc3c7e","block_type":"box","text":"Certain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":172,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"cfe2afed-755f-48d1-bbc1-f56227ce144f","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":172,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"e2ce3059-fa5a-4cb0-b989-9f7f7c164f78","block_type":"box","text":"allowance of certain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":172,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"d895c771-9f94-47c2-9a28-8c60c081d417","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":172,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"78b324e2-3e3a-4497-a42c-01dab97c6bdf","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":172,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"99692e10-6647-48e5-b436-f7bd5f246962","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market certain types of","page_number":172,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"065b52bc-8536-4f19-a86f-c1aaa57519d2","block_type":"box","text":"positions in its portfolio (","page_number":172,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"f8961ca3-7f6b-406e-9988-fdb35f1ea2e6","block_type":"box","text":"i.e.","page_number":172,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"c01b8e6f-fe41-4bd4-b380-5a79770a0d91","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":172,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"f3f05645-3229-40f2-84d3-7d18a49dc17f","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":172,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"6eb09b18-4586-4352-9633-75a2538becc5","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":172,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"929f7dc3-648c-4aa9-b32a-0371a6849228","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":172,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"8e8d003c-297d-4f32-85af-417ce66ce886","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":172,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"fcd198f9-3361-4644-835b-0374448a258f","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":172,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"a0025167-ab16-4d83-9231-3884c484175b","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":172,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"e22065a9-7fdc-4c8d-ad25-03c56a031180","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":172,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"3cb48933-24e5-4cfd-8403-06c2f314741c","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":172,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"6c7a5432-18d5-441a-9931-498d56b93d61","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":172,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"564abf52-d3f3-4fb2-adf4-2c32e0010f3e","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":172,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"d1453bca-5374-4094-a0e8-3cd5b7c108ba","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":172,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"26ce1b14-4c52-41a2-8e48-7ea1fead8f59","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":172,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"88e4ac47-8393-4ef8-bfcc-d9bb1d83c2d5","block_type":"box","text":"II-134","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9eb1f576-5fac-41e9-b690-73a67722b5a1","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"682a934f-b1eb-4074-8eef-49806f550a84","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":173,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"5a062f0e-7d42-4e1e-a054-e59c0d68393d","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":173,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"adc36e27-0d63-4aca-8826-1cab7d40c5d6","block_type":"box","text":"capital asset.","page_number":173,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"80f2b9b0-7d42-4378-bbe0-4c7e1db0024d","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":173,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"4e88e0b1-40cd-4f71-8576-843559ed9e49","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains by underlying funds will","page_number":173,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"d4992df2-9b1e-47a1-a72d-46278daaed2e","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":173,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"c0d394e4-16cc-4de1-b8e9-900222900920","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":173,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"5158f58f-996d-48c2-91bd-3c572ac7953e","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":173,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"d1601b8b-53b4-4f2e-af13-c2e543812332","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":173,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"15f4c6cc-45db-4dd4-bb09-e6c5adb41532","block_type":"box","text":"Fund were to invest otherwise.","page_number":173,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"914f2947-a74a-4488-a20c-ab65c71a7776","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":173,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"d1c00702-fad1-4941-a75b-f2b5ef2e9aa2","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":173,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"031fc616-bdf5-4950-b93b-8c915eb5f9d9","block_type":"box","text":"income will be “subpart F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":173,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"9f53dd67-3544-463a-ba75-1f6b0fc50b37","block_type":"box","text":"to report all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":173,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"2d8df5f5-a6b4-4510-85dd-ee9c85442bcf","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":173,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"3da05db5-1de5-4bc9-b4ed-b4eece07c169","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":173,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"ec41508d-4a48-4002-9778-1e0d307a4a4f","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":173,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"93cc3462-f9da-4c9a-9b42-49f3729faf56","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":173,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"59926ac1-01ec-4122-9c83-6e221c0b0d1c","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":173,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"6d073283-ec58-4b8d-b282-1b7af1b728ef","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":173,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"7f10c414-4225-4b87-a220-69a56f96a85e","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":173,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"d2ffef0c-343d-4015-912a-7589238a3204","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to certain distributions from such","page_number":173,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"eda072ba-63ee-418b-a7e9-de6e6886d144","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":173,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"94f5d8af-ee29-4af5-9101-9a52525d8277","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":173,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"68b0bf65-9e10-4577-8e4f-a6710d4eea2f","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":173,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"c7275eb8-11f8-4458-83bc-7f4dbfd17d66","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":173,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"66aecc8a-7259-4cdc-8fb5-cf94cc560dd5","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":173,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"59cad1a1-cae9-4a70-95fe-211f7de71fb5","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":173,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"fe8c8825-51ef-4c04-88f7-5b1340dda5e3","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":173,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"901dcc0f-a3e5-4841-8349-7f8d60d6b626","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":173,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"24fe488c-f22e-4427-b16b-7963a1e16854","block_type":"box","text":"PFICs, but in any particular year might be required to recognize income in excess of the distributions it received from","page_number":173,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"2c946031-d20f-4ae3-9c9c-29c30244bc1b","block_type":"box","text":"PFICs.","page_number":173,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"0d6a7471-7a23-4b1b-a403-30aab1d12104","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":173,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"10993794-239a-4411-9bcf-d9be9d9599ba","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a portion of the ordinary","page_number":173,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"92338d70-725f-454c-8722-643938d9032b","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":173,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"2ac2453a-3175-4d2c-8230-1103c6b9b8cd","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":173,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"eaa64fad-7e25-4bea-81a4-6fa9da5b93fa","block_type":"box","text":"the Fund would be required to obtain certain annual information from the PFICs in which it invests, which may be","page_number":173,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"ba807834-e237-4a8e-b592-022d7244d60e","block_type":"box","text":"difficult or impossible to obtain.","page_number":173,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"79880b2d-a9e9-4f86-92ed-f7b3e1a67783","block_type":"box","text":"In certain situations, a Fund may, for a taxable year, defer all or a portion of its net capital loss (or if there is no","page_number":173,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"edb8375c-f125-4ef8-a02a-603758d26804","block_type":"box","text":"net capital loss, any net long-term or short-term capital loss) realized after October and its late-year ordinary loss","page_number":173,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"c9193309-c53a-4607-b0d3-315956e69080","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":173,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"a8213876-ec9d-4c83-97b8-4bd02d13783a","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":173,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"76b28622-2c9a-43c0-9a4f-0d2449c4dc49","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":173,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"502adc62-80eb-4c83-ab67-8f19669d8791","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":173,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"b53da008-b7a8-4382-88a9-cd1da79725f2","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":173,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"989e51b4-cc92-40c3-ba54-756b3acd6d2d","block_type":"box","text":"Municipal Funds","page_number":173,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"cef425ed-1eb8-44ca-8391-60fa72bae5ce","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":173,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"830e0c09-38d2-4405-830a-5c9bcd294423","block_type":"box","text":"Code. Under such section if, at the close of each quarter of a Fund’s taxable year, at least 50% of the value of the","page_number":173,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"06664ea4-2fd7-44b4-98a9-439bce595e6f","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":173,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"a18e3f23-6a81-4aee-9bab-e2614e7c6ed6","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":173,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"dd7fafd4-5843-439a-b622-6b749769228b","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":173,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"489a6e30-810d-4dfd-a1f9-bb4fa07fec2c","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any part thereof paid by a Fund that are attributable to","page_number":173,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"b932223e-46c6-41e7-8ad3-d88758408fcd","block_type":"box","text":"interest on tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":173,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"d882449b-d3fe-4792-b176-4678d9e757ce","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":173,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"2ceb0ca5-717d-4a6b-ab7d-e4fb343a1a66","block_type":"box","text":"II-135","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2dc62d6d-9d8f-45dd-9bae-dcb0597755f0","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e923f31b-442e-4181-88df-fb1ff38dcfd3","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":174,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"45bb8d14-fc9d-4ef5-a23a-deaff84907aa","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":174,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"f94f570d-a7f5-415d-a92d-cf78c9770d8f","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":174,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"fe4ce22d-523e-4399-93f2-b4675286a05e","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":174,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"8a97bf8e-1217-4463-85f2-79b33e4ee5c4","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the portion, if any, of a person’s social","page_number":174,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"dad719a6-7192-4fa3-bb90-cef24ea14aba","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":174,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"f38fe312-c311-4228-9194-870eeca1be82","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":174,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"a69d7b86-bd68-4728-b460-7bfe77672924","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":174,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"83c6e7ac-22c2-494e-adc0-b071420b8f68","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":174,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"cd11573f-4965-4919-a7c3-77aae9428fbe","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":174,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"0454a068-1ccf-4383-8a79-b82ed1b4e840","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to property financed with the proceeds of an issue","page_number":174,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"a057dc76-5280-4d19-b26a-5dfff4bb30e7","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":174,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"589bd778-0480-4626-988a-18a7645891f2","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":174,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"2afd0493-2153-4550-8e4d-924293fd556c","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":174,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"283cf725-5c56-44d9-85b7-3714102ba3dc","block_type":"box","text":"constitute exempt-interest dividends.","page_number":174,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"45762de5-cb88-4106-9a06-9860a6a7d06d","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":174,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"6b150618-0fe4-47ac-a742-e1fed1a0d025","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":174,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"ffc013ef-fe77-4c33-9794-49f0eb1bc99d","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":174,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"43e63c23-0b32-4af8-a100-ee71ce049ce5","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":174,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"ef4a3dd6-ecac-425b-aad8-0bc9c07ad072","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":174,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"4922a610-3577-4324-940e-0a0076e37eb4","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":174,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"c1d179c1-038c-4a65-982a-934cd7c6494e","block_type":"box","text":"All or a portion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":174,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"9590a954-776a-4961-8bea-fa7a4ae0193c","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":174,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"2d42559d-1994-4f0b-b12d-2f2050970719","block_type":"box","text":"income dividends received by shareholders.","page_number":174,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"4e756e02-e750-4f03-8e98-3be366caa58b","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":174,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"15e434c2-9307-4c29-ac3f-9428aa80891e","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":174,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"8e01c40b-9894-4b9d-8535-cc9f66eee9d9","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":174,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"70e6778c-092e-4abf-9602-61c93e451e62","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":174,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"e49d527f-3769-467f-91b6-dafe16a99bf0","block_type":"box","text":"the accrued market discount.","page_number":174,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"38a300d3-fa61-42be-9d3a-4f6ed24b1994","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative minimum","page_number":174,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"c9ed70e1-5d99-4883-9718-eb9c9fc60ee1","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on certain “PABs” issued after August 7, 1986. PABs","page_number":174,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"92168dd0-d4e9-411a-a48a-666c122fa662","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally performed by governmental","page_number":174,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"444e286c-05c8-4eb7-beb3-3a3b1bc0c076","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":174,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"f90dedc7-d23a-43a4-a68f-38a07abe6e1b","block_type":"box","text":"e.g.","page_number":174,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"70ac0010-edb0-408b-ba9b-c33d025f1ab4","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":174,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"86be9684-8c5b-42a5-85a0-933acb8749d5","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject certain investors in","page_number":174,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"af8d9feb-7db4-412f-a36f-d837a3830427","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":174,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"7095eb57-a32e-4ac8-bed3-123eed1f1882","block_type":"box","text":"“PABs” and will report to shareholders after the close of the calendar year the portion of the Fund’s dividends","page_number":174,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"91f2fd9a-5480-4436-81de-98d25b00c7c0","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":174,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"8be17b6e-ccd2-4ae8-b634-fe3a03b1293b","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":174,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"b53f6e38-a787-4133-a6f6-a71ec842b4d3","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":174,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"ffb9c556-0c88-4c22-95a0-bc70c19e6352","block_type":"box","text":"such arrangements as ordinary income and to amortize payments made under certain circumstances. Because","page_number":174,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"c62a4402-1886-4f38-a0cd-f299194a8265","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":174,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"66280f96-c322-40b0-b545-98e49bf1339b","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income proportionately, they","page_number":174,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"7b5683b3-d94d-4883-add9-fd51c71ac810","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":174,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"3616ce54-4a99-4149-9258-7fcedf63140f","block_type":"box","text":"Please see Part I of your Fund’s SAI for certain state tax information relevant to an investment in BlackRock","page_number":174,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"27e9b719-6363-4a63-9ee1-d2d7fada5ead","block_type":"box","text":"California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":174,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"3bb8de4b-0d22-4b8b-aad0-140c0b7ac051","block_type":"box","text":"Opportunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":174,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"0902d1b1-71d0-4b0d-846a-f63d6b683d04","block_type":"box","text":"within each applicable state.","page_number":174,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"8039dde4-9101-4a10-b95a-88f63aa9bfb5","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Portfolio in","page_number":174,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"8d079549-be2d-40c9-88e0-7fa2c49635d6","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":174,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"b54a577a-5f05-4780-8d25-ba5f47ef8234","block_type":"box","text":"investment companies. Each Master Portfolio is classified either as a partnership or a separate disregarded entity","page_number":174,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"048dbc99-d86a-448b-945f-5eb33423e239","block_type":"box","text":"(depending on the particular Master Portfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":174,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"d7cf464d-8add-4e7f-904d-1cc61c365943","block_type":"box","text":"to change the classification of a Master Portfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":174,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"a127b855-533f-4f4f-8bd5-8595a0a76e35","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":174,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"be113829-5a7c-4a64-b2ce-380853a09511","block_type":"box","text":"II-136","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"10df85f4-db2b-4a79-a9ef-2fa4bdd6b92b","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7a3a488c-79c5-492d-bf2d-bf0439813801","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to manage","page_number":175,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"f4b813cf-d53d-4df2-8e38-1fcad05298df","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":175,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"5da42883-85e6-4366-8b0e-cf1e12c9bf1e","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states exempt","page_number":175,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"27029291-f4a6-4a22-9e91-b95e3c04f97a","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":175,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"dfab8b7e-16ee-4411-af8c-f0e1aaedd6d1","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":175,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"abc78886-0d9b-48a4-8b0c-4e8a4f41fb37","block_type":"box","text":"exempt from state income tax.","page_number":175,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"ee5eea35-7e9d-415a-a02c-eaad399a9adf","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":175,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"d8259149-3552-4959-b724-216fb5436920","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":175,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"158c327c-5eef-4a22-ada7-0e0b4464a727","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":175,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"887ddc0e-1c08-491f-af55-e70a2d397112","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":175,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"bcf2e80d-b134-456c-b71e-069600ea00bb","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":175,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"b6b05311-b4bb-42da-90a7-2333968d9cb1","block_type":"box","text":"court decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":175,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"9d6d85db-08f1-498e-afbb-a97e4d9edcc2","block_type":"box","text":"decisions may have a retroactive effect.","page_number":175,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"252d8333-581d-40f4-9396-877333cdd85f","block_type":"box","text":"PERFORMANCE DATA","page_number":175,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"fdffa63d-e3f8-47ba-8282-ee11333ffcd3","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":175,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"71c7a752-fa6a-4cc1-aae5-b1d2d249274e","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or prospective","page_number":175,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"34735e6b-3818-4248-8839-921814c0bb8b","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical performance and is not","page_number":175,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"cad134eb-17c2-4cc3-a29a-2eda3db250e5","block_type":"box","text":"intended to indicate future performance. Average annual total return is determined separately for each class of","page_number":175,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"0a29021e-3769-40e2-84a8-a23dcf96d55c","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":175,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"291810b3-2175-4ba7-b110-d66117dacc79","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":175,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"8f02bb36-8e5e-42a6-aa68-9f3db61d3c10","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":175,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"c0ad8273-ef13-4db4-a8d0-564c17cb4290","block_type":"box","text":"gains or losses on portfolio investments over such periods) that would equate the initial amount invested to the","page_number":175,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"55f381e4-a506-46e8-afca-4db533444c65","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":175,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"d4e9cc8b-9b7b-4265-b167-a318351a8336","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":175,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"f63f51f4-eae8-43c9-82b4-e05b09b773f9","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":175,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"9fd1539c-5e60-4c67-8399-3447d4e1c451","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":175,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"ab7bda66-3e42-4f48-863b-5d4d34cf5589","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":175,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"18e0cbb5-4b79-4a5b-8678-4fefdaa9020e","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":175,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"ad343eb5-288a-4476-a2d2-b9b1e98726ec","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":175,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"403d4be7-5a1a-4f2c-98f2-d351cb4672f4","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":175,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"718f2e3f-ca0e-453c-99dc-f0fbec073d0f","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":175,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"1d89a5c6-5379-4e9b-bfcf-2ddee3a6f682","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":175,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"5a5fcab7-ab6c-4938-abc5-6e163a08f6fc","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":175,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"145f8f28-9725-4ac5-8e42-af5eff454eee","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":175,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"512f1d18-badc-4c6b-ac3c-07075445d2a2","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":175,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"bf821188-f29f-4bd0-9d14-6b60b0da266c","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":175,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"bd3cd41d-c8e9-4977-89b8-ffb836d514a9","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":175,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"d999f30d-6691-4a7a-a308-6920454ff845","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":175,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"450944ab-17b4-49e1-9079-cbcb562a915a","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":175,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"9e1f73ec-bf15-4124-93aa-9ad2135f873e","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":694,"width":814,"height":11}},{"id":"2767a4fe-4ed6-4c61-bf35-3149e8cf44a6","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":175,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"3b316679-5003-4aff-b708-f6e4d8c1fb67","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":175,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"9fad51ad-ba9c-4298-be42-057cd3c2e873","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":175,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"9ba52050-cd5a-4e42-a0c1-cbc05cbb6366","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":175,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"6d80b0f2-2e66-420c-8402-eca6128da3c3","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":175,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"7795b322-5cd1-4531-af81-02877b58d250","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":175,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"d7337436-b6bd-40ac-bf73-73e79c4356b6","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":175,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"4e1146b0-2ebc-4b03-8096-bfd7e9443d17","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":175,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"1af0baa6-21c7-4c6b-b4ed-dc17d4304d5f","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":175,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"bb26539e-9002-4497-bba3-c7eec0b09827","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":175,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"41e0a3ab-627a-4f14-a533-3edd1ff02ebb","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":175,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"88fe97ff-39ca-4b93-81c8-b170b875ff7e","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":175,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"704d746a-2766-41a1-b9e9-f3b6cb65734d","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":175,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"2262772b-db8d-44fb-9321-4b55657dad68","block_type":"box","text":"II-137","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3fddd60e-a57b-4ac5-b23e-ef5bff16ba61","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"18033a7d-70d5-435c-bd58-feca6132228b","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":176,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"83ed584a-af15-4bc5-9f5a-20d6a88970b0","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":176,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"483f7bd1-f7fa-48df-8fad-e1e478d9f4ec","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":176,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"519f07e7-1020-4597-a9e8-92f6605339d1","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":176,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"89a404ac-b04d-4ab5-99a7-ded19c26cf50","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":176,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"4ad333e5-6b89-4bf5-bd79-eb720db70886","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":176,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"2ac3430d-44ff-49e6-ac3f-8a71efcbf1c0","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":176,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"9929cf60-b3e0-4cdf-bada-d7c5f9e9afb1","block_type":"box","text":"performance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":176,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"3070f3da-5b70-4add-b7b7-ac0f38e655d5","block_type":"box","text":"some other amount, for various periods other than those noted in Part I of each Fund’s SAI. Such data will be","page_number":176,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"d7c3b12a-a573-4308-b314-4a731090c619","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":176,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"35d4697c-d710-4665-8906-fb124ec37080","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":176,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"b9f02d43-1256-408a-9fa9-f91bbe3340a2","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":176,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"a844ac29-63c6-4773-a3c3-c9482f912dd5","block_type":"box","text":"performance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":176,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"2bfea7ab-1944-4b28-b431-dfbca68b23ac","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":176,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"5ea74b89-8290-47ad-96b7-b5d4f65dbe13","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":176,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"4bb679d8-35b5-488d-95aa-e7ee0795511d","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":176,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"590e1fd3-8c70-4127-9959-94612ef9f5b3","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":176,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"37bb84e2-8a00-470d-a441-9ae517309855","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":176,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"09c747e6-016f-47c6-b3bd-b2faa6af4aa7","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":176,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"bbb91f60-afb4-48c8-a968-9af999864d77","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the part of a Fund’s yield that is tax-exempt by (b) one","page_number":176,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"d25dd83a-57b5-4848-a328-5e4a7db70fd2","block_type":"box","text":"minus a stated tax rate and adding the result to that part, if any, of the Fund’s yield that is not tax-exempt.","page_number":176,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"1f989b18-3e2b-4c1e-a8a2-104d8d60d300","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s portfolio, a","page_number":176,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"35d011c1-ef16-4127-a2dc-ff1fb92caa30","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":176,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"96582470-a247-40d5-a921-2419c9a0d223","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be worth more or","page_number":176,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"613c3514-baf7-4fa7-91be-9e3ed585c072","block_type":"box","text":"less than their original cost.","page_number":176,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"1749faeb-855e-4f4d-8e9c-3e346107c73b","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":176,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"444fa06e-0563-4555-9536-d69dab3ffc55","block_type":"box","text":"the case of CDSC shares applicable to certain investors, as described under “Purchase of Shares” and “Redemption","page_number":176,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"29289929-7d94-4876-8093-253022abd040","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in advertisements directed to such investors may","page_number":176,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"0a04bfd4-d453-4e9c-b464-7a5a058c2438","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":176,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"c39f9e3e-2f60-4ad7-a753-5ddf13f8ca2c","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":176,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"6d0f8c35-aa5c-421f-bba1-a1dc01a01a69","block_type":"box","text":"lower amount of expenses is deducted.","page_number":176,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"ea334c7c-30cf-49f0-9887-5fa3438cfde1","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark index","page_number":176,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"3c523f3c-0892-4109-8e2b-49140fb4155d","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":176,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"7bfac3f2-35bf-4268-a5fb-b99a104c1b13","block_type":"box","text":"indices, or to performance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":176,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"ff55706e-46d7-4709-a7e0-af4041c76d35","block_type":"box","text":"Money Magazine, U.S.","page_number":176,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"537ab3ee-c87c-4b78-a7ae-1e58a946388e","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":176,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"c7a30def-8af2-4652-a728-32fb0e427933","block_type":"box","text":"or other industry publications. When","page_number":176,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"75caadfe-8eff-45fa-9b98-dd05093e24a3","block_type":"box","text":"comparing its performance to a market index, a Fund may refer to various statistical measures derived from the","page_number":176,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"dcb9d646-2b88-4875-9afd-629b38a95fdf","block_type":"box","text":"historical performance of a Fund and the index, such as standard deviation and beta. As with other performance","page_number":176,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"be19e2fe-2354-4413-9e67-467f00e0a129","block_type":"box","text":"data, performance comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":176,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"e6682c5c-e8a4-455c-b45f-7d3e237e9625","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted performance ratings","page_number":176,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"8a878385-ce37-4dc4-ab8a-010ba5b044bb","block_type":"box","text":"assigned by Morningstar in advertising or supplemental sales literature. From time to time a Fund may quote in","page_number":176,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"9ac20475-fc77-434e-917e-c9757b9337f0","block_type":"box","text":"advertisements or other materials other applicable measures of Fund performance and may also make reference to","page_number":176,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"481ddae6-79de-4ecf-8e59-925a53cbc300","block_type":"box","text":"awards that may be given to the Manager. Certain Funds may also compare their performance to composite indices","page_number":176,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"d63d668d-91d4-4dea-8050-0ee3eb33c5fd","block_type":"box","text":"developed by Fund management.","page_number":176,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"aadee290-b567-461c-95b8-0c44874df918","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":176,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"60f6a234-2c67-467d-b8d4-650a3d1a0834","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":176,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"ad6b3eec-5182-421c-9250-016594d49c37","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":176,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"e5f335ca-21ec-4919-af9e-c5277808e6fa","block_type":"box","text":"and risk tolerance, discussion of a Fund’s portfolio composition, investment philosophy, strategy or investment","page_number":176,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"edae2cbf-26c8-4ae4-ae59-1359e18bea02","block_type":"box","text":"techniques, comparisons of the Fund’s performance or portfolio composition to that of other funds or types of","page_number":176,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"e2ed89a8-9a79-401e-91db-0e6118791964","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model portfolio. A Fund may also","page_number":176,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"42073b61-d15a-4b77-8e89-105a22d2f5f3","block_type":"box","text":"quote various measures of volatility and benchmark correlation in advertising and other materials, and may compare","page_number":176,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"81fd4fce-97b4-42e9-ba61-53fff76ec0c6","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":176,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"4518b1c4-6860-41f3-8ef3-ed852b012237","block_type":"box","text":"II-138","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"aaf4c396-64ac-49cf-92f6-8ba007496435","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"527adf3f-cd22-44e4-8f7e-5506de5d82ea","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":177,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"fbef6c3c-c339-4ea5-92f9-d34cc7b26fe9","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":177,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"c9a27e0d-0b47-4424-9df3-6a9368b42eba","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":177,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"f9533133-bcad-4bd5-8b72-44d89b33fb68","block_type":"box","text":"Policy”), with respect to certain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to certain other","page_number":177,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"0527449b-3951-4233-8ec6-3c1115b14297","block_type":"box","text":"Funds, as applicable. Please refer to Part I of this SAI, which discloses the policy applicable to each Fund.","page_number":177,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"90a80b21-806a-48e6-af39-e8e59b950bd6","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":177,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"c7471970-eb06-4ef1-ab86-a369fd316002","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Certain of such","page_number":177,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"1e4d780f-0b0d-4d76-9837-a8aec088abf7","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Part I of this SAI, follow supplemental","page_number":177,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"2748fe47-0afc-41e5-bf58-ae0a83e19079","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to certain climate and decarbonization issues (the “BAIS","page_number":177,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"02bde34e-0b00-43f8-8050-7f6143695e74","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":177,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"a8c2ed02-59c8-4a91-ba9a-de590914f18d","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":177,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"753e979b-dd66-4225-a9e6-3f6d903c3468","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":177,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"b90f19e7-5d12-49be-bb38-afa70d764ba2","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":177,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"9091a604-bc9a-40b2-8ab4-62718714658f","block_type":"box","text":"addition, certain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Part I of","page_number":177,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"fd345783-5968-42ec-a167-eea3ce46e7fc","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to certain climate and decarbonization issues (the “BIS","page_number":177,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"3cdce4fa-b6c2-4539-a59d-b8f7a95cfeae","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":177,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"d8265e8b-c410-45d1-8731-463d50ab37d2","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":177,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"4b71f8eb-c6f7-418f-8ea0-0c53a45b4c16","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":177,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"a65abf3b-42b8-485b-a528-db0307c2276f","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":177,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"ae5e721d-ffec-4c6c-bd5f-c550f31aa2cb","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":177,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"934a1195-be3e-4826-8c72-56ffb8da49ce","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":177,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"eed95535-c9f2-4af4-81af-c8089831d6a9","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":177,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"a2c771a9-e663-42c0-be64-6093c47459f5","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a particular Fund pursuant to the","page_number":177,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"1d95002c-5849-4f8f-8e65-c4f3a9492add","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a part of the","page_number":177,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"987c05ae-555c-476c-b850-a65f582a4b68","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to portfolio securities during the most recent 12-","page_number":177,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"af9e52ca-7877-48ef-80e3-a50baf73e7dd","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":177,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"82071cc1-c207-4fe3-bd01-d8b8f7765341","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":177,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"b24025fb-280a-4cc1-a115-068742b88b27","block_type":"box","text":"GENERAL INFORMATION","page_number":177,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"2a7a4f84-3d5d-4db2-a9d6-dd6ba25707ad","block_type":"box","text":"Description of Shares","page_number":177,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"a57984e6-4c67-470a-8036-3900816c1b60","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":177,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"73df160b-88fc-40c8-b96d-f6aeecd69996","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":177,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"7b2f9533-a444-45da-963c-5f4cb3cd1400","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":177,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"b3722cd0-fe55-4350-a0e7-b47655027199","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":177,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"c122d680-4efe-43a3-8832-065efcdf5bf3","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":177,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"f43e74f8-b15d-48ac-a75a-e84447de2552","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":177,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"eb497dcf-a5fd-4f42-825a-e93167b92bc2","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":177,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"984ec796-957e-4934-b895-5792d10d8665","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":177,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"2e967d80-c6c4-4b83-8c20-5a268e14cbe4","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":177,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"9b95d3d4-1595-46ab-a762-7b67e72fe950","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":177,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"d3a36d4b-85ec-4172-9c52-ebaf8d32c1cc","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":177,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"9d5a5411-8a2d-4d16-8289-a2ceefa94e8c","block_type":"box","text":"Common Stock is entitled to participate equally in dividends and distributions declared by a Fund and in the net","page_number":177,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"44733010-37a9-4355-835a-be6d44044e2a","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":177,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"f1838140-59d8-4137-9c4c-ffcd389cd9f3","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":177,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"9ed8a07b-be3f-45dd-8ab3-f59414107021","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":177,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"565447a7-1a2d-4a01-bc95-b194d522d265","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":177,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"7f71faaf-bbb3-417f-bc2c-99bd2e8c21be","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":177,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"8f644160-c64b-4ca1-a3c7-325fe25a94a4","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for its","page_number":177,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"83beb243-82b3-446d-836a-0d794a907918","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":177,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"a6a45e02-4bfb-4af5-8eb6-deed5ef081e6","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":177,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"afbf1323-5b34-4cf7-abb9-63a3b2155376","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":177,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"b3d32082-e397-4191-a485-29ce78405c46","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust property for any","page_number":177,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"11e32fa3-6dc4-4d50-952d-9a08d2911929","block_type":"box","text":"II-139","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1ca4d6d0-b2b1-4661-8d3e-bfa7680b23e5","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"893bb552-ec06-467d-9411-a58f3f530cf6","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":178,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"8e5c22e5-9a70-4216-92fc-d4690350d9f9","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":178,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"41ae9c61-7b3d-4ab3-9282-1f5e81c584e2","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":178,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"0bee7110-9ebc-4fb0-9a63-3cb1b30b8a39","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":178,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"42d61546-70e4-432f-a5a2-e130dbf6e7c8","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":178,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"1540cb28-8c7b-4a1e-9ae7-b7ea682db072","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":178,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"682904ff-3f80-48cb-9bd1-1100ef96a21a","block_type":"box","text":"Additional Information","page_number":178,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"991d12a8-5535-42e3-9d5f-202cb9e2ea48","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock” name and","page_number":178,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"8fe1249f-224d-45af-bfcb-d14f8a1477e0","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":178,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"c2fc8ac6-0e57-42d4-b2e2-8db3ca961e51","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":178,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"9bce0393-cc77-4c72-8ab5-6885ee9c38b7","block_type":"box","text":"such name to any other company.","page_number":178,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"af50f795-4692-4d93-aa39-37c0b929d7a3","block_type":"box","text":"II-140","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a3187ae1-8b7c-491f-ba9d-33d8052ca35f","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f72b0d9-2344-42e5-aed7-300e7c8db3bf","block_type":"box","text":"APPENDIX A","page_number":179,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"084f6f6f-96af-44b3-93ec-66fe8e237194","block_type":"box","text":"Description of Bond Ratings","page_number":179,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"041b6c3a-e72c-4f6b-ada7-823a6be0fc3f","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":179,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"8331678c-7824-4681-b8bd-1b7d363f6fc4","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":179,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"2eb93b22-9bdd-4e2a-b990-0868a7fe7cf9","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they undertake no obligation to do","page_number":179,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"c47a49f8-fb48-4276-ba31-ae71a40c8d37","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":179,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"3df71841-c81d-4947-b31f-a1a1451a21e8","block_type":"box","text":"securities on a particular subsequent date.","page_number":179,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"a08514a1-8e32-4627-a58d-3c14acdccf9c","block_type":"box","text":"NRSROs may rate specific investments (","page_number":179,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"539ac298-4777-437c-b60f-13277a6b6fd4","block_type":"box","text":"e.g.","page_number":179,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"3fd98f8a-d847-4fe6-91c1-03228ebc78b7","block_type":"box","text":", bonds), issuers (","page_number":179,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"c395f3c3-645c-477b-a8d4-0a67fe677724","block_type":"box","text":"e.g.","page_number":179,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"c2a37a16-5444-4bc6-b2cf-8b6ecf1fb809","block_type":"box","text":", corporations, governments and financial","page_number":179,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"4b175915-3611-4eeb-beed-14b0381f0d51","block_type":"box","text":"institutions) and/or programs (","page_number":179,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"a29eb568-68c0-41c3-ab23-4ac01fb0d456","block_type":"box","text":"e.g.","page_number":179,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"19f99fd7-5cb1-4daf-8902-afcf05db43d4","block_type":"box","text":", commercial paper programs). However, certain types of investments may not be","page_number":179,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"22a45262-c7af-4598-8ba4-ce027961f41a","block_type":"box","text":"rated by NRSROs, such as certain government/sovereign obligations, US agency securities, commercial paper, time","page_number":179,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"cf33fa44-fc7c-4a29-97e6-084b9a8e0b8a","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":179,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"4ea1a8b2-d7be-4560-bb18-bc25ea479d5b","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":179,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"d70c32eb-41c7-45fd-8377-8c1a6537e657","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":179,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"03244faa-6bc8-434f-a0bc-12b7224a2e9e","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":179,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"d2090a99-baed-4658-8100-2a852505b7ed","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":179,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"aed095e6-d022-4e38-8af8-d409c21e117c","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":179,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"d118dc65-bd7f-4569-8e6b-5881b301b507","block_type":"box","text":"security (","page_number":179,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"75f38c95-c197-4e72-8c5b-76aeef28f993","block_type":"box","text":"e.g.","page_number":179,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"c267f1a1-3a2a-467b-b749-05a7c5e5ab30","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":179,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"9e786d40-a3c2-4889-95ab-d6dea442870b","block_type":"box","text":"highest of the multiple ratings.","page_number":179,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"c1aa1aef-ab53-48e2-ac9a-d8909a20b443","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":179,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"3909e380-c314-4423-b67b-d6fd9e87571a","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":179,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"6fe6d443-da05-4374-beb0-ae8b0831f590","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":179,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"b140bd95-8c27-45d9-8698-02a1a291f0c7","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":179,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"94753aba-4ff2-4b73-8526-dd52e192b257","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set forth in the","page_number":179,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"76a83cdc-17ea-4fc9-8f74-e1dc67fb0637","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set forth in","page_number":179,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"cac7233b-11fc-4d5d-896e-2a6d4a276206","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":179,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"b7ce3e84-f553-44d6-bdcf-47dddf5999cf","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":179,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"8fa014a1-212b-4a64-a9eb-a1704a51214a","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit ratings","page_number":179,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"675b2c35-4ce4-416a-a1d3-1c37db9fd456","block_type":"box","text":"eligibility criteria as part of its index methodology, the fund may purchase any security within the index, such security","page_number":179,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"47de1623-9257-4bb4-884c-43685581cfda","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":179,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"ae317bb9-c2ec-4a8a-a050-086325053010","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Further, the fund may","page_number":179,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"d2594f84-9b49-4e1d-9551-4f86f9697c61","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":179,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"737ebb5b-c5d7-47cc-95e6-4e631beccef1","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":179,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"ec25fb49-3d77-480b-b9bc-e4587faaa7e6","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":179,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"66a3acaa-bd48-46eb-8d74-4d548389e5fd","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":179,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"77f810c3-e820-4e8e-b581-00f8668ee3a0","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":179,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"9d2e509d-413b-4898-ac06-bc8d357695a2","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":179,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"48814b75-371f-45c3-bd86-def2961a2aed","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":179,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"251a2249-ae3c-4b0f-a021-b1f20c662be1","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":179,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"7afe61ed-ff28-4f42-a220-7984e6d7a0eb","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":179,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"9c55ee61-9787-46bc-978c-3aad6a44cbcc","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":179,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"2c0093bd-062c-434d-8406-d5d4c4b3b406","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":179,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"acc7703c-a4b5-4aeb-81f9-6d4fc6861dc7","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":179,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"33946324-966c-4d32-92a6-1344dd0cb9d5","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":179,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"e5468bc1-1d3d-431b-a3b4-5643dd095f6b","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":179,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"b029277d-8a3b-4f9c-a467-6d4b1c6a1aaa","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":179,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"87dfc3fc-28a5-49fe-a6e8-6cfd68f9a380","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and short-term rating scales and are forward-looking","page_number":179,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"51327e91-035f-4c36-94cb-633b8c9eb442","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":179,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"a61f293d-4d53-4e4b-bafe-5007d2646525","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":179,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"47154ae3-b583-4416-85ed-ad836c5e4bea","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":179,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"ed4aabcc-18dc-470a-b0ea-f413af14bc56","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":179,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"1ef3d5ba-a905-49e3-8561-8409df285618","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascertainable amount, which may vary based","page_number":179,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"bd3f3f27-690e-404e-8dc8-9ab6ab3d653c","block_type":"box","text":"upon standard sources of variation (","page_number":179,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"010f8844-3f6f-48d0-953d-0a6f00ba1462","block_type":"box","text":"e.g.","page_number":179,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"1b2c0118-ad5b-4dff-9c2c-9eebc0706df9","block_type":"box","text":", floating interest rates), by an ascertainable date. Moody’s rating addresses","page_number":179,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"e1438422-f46a-44e4-8a5f-e2375f818fc8","block_type":"box","text":"A-1","page_number":179,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"e28cab7e-a014-4507-9762-0eafa064575f","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7b0662fe-3c38-4e48-9b7a-1ee2f0c853ac","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":180,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"8f89f12a-6118-454b-9c84-da62183f6f67","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":180,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"8549a2e5-3f6c-41da-ad93-f54597c93d35","block_type":"box","text":"e.g.","page_number":180,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"7086030d-f09a-44c5-af41-9c11f1571b36","block_type":"box","text":", equity indexed), absent","page_number":180,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"55473e2f-16f2-4f2d-a5d4-4c64607b592b","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":180,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"64511f58-837a-4bd4-b7a7-8b922be3018c","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":180,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"3a586e6d-13fd-4096-be85-aea07a19df30","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":180,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"8c8456a9-c155-4efe-b66f-3c7a482dc164","block_type":"box","text":"the event of default or impairment. Short-term ratings are assigned for obligations with an original maturity of thirteen","page_number":180,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"79b38aa2-4243-4d29-baf1-84191049ed09","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":180,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"70ee46cd-83f5-4b4c-a93f-c0710233289a","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":180,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"1c0c9230-a125-4f03-8beb-6d8b4676a890","block_type":"box","text":"and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made publicly","page_number":180,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"33c6e040-a70f-4fdc-80fa-18d2f441c558","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":180,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"218eae21-10a9-4461-a344-de25bf9dd661","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":180,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"5b806959-4319-4306-b2e6-f4e2251fbeb5","block_type":"box","text":"i.e.","page_number":180,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"bd1773f1-a97d-46d5-9292-e53cadf2e618","block_type":"box","text":", ratings on nonfinancial","page_number":180,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"47f6fbc5-be7f-486c-8219-4eba4afd07fb","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":180,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"40de4180-9948-40fc-bbb7-b72a8fcc250c","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":180,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"1ab0d4c7-a4c0-4098-8426-ab7312e0a8aa","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":180,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"63e2488c-9140-4007-9b9c-7e0e8c02ae31","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":180,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"bd40c735-fdb6-40ed-a6a8-177a9d9808f7","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":180,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"acc70c56-07a0-4bb3-b790-2b381231abc1","block_type":"box","text":"expected equivalence in structured finance and fundamental rating performance when measured over a long period","page_number":180,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"13df0048-3e18-4ccb-8893-e6abd7d398dd","block_type":"box","text":"of time.","page_number":180,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"46fe8242-8c1f-496e-bbcf-87e1bf69c82c","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":180,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"74828ade-898a-419b-b474-10c9162cf893","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":180,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"91899818-6ee4-4e5e-a514-5b6da3ef01ec","block_type":"box","text":"risk.","page_number":180,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"97d1ae26-b8b4-4d8e-9069-3de790026636","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":180,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"b5ef0cbf-2529-4c15-85c1-f3ff6ff13e59","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":180,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"8a45ca02-ec50-41cf-b6af-07b7a9a8ece4","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":180,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"c69761fa-a91a-4298-9500-cbfea547d5c5","block_type":"box","text":"such may possess certain speculative characteristics.","page_number":180,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"dc5af6b0-b160-4aaf-b5ad-660d1358fa8e","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":180,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"48c61dad-8473-4e01-a0f2-0f94be43524d","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":180,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"38af8b42-be98-42b5-a34d-135e43b92c9c","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":180,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"664d827b-4756-4dc0-8dac-3719c037bbb6","block_type":"box","text":"credit risk.","page_number":180,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"bb9eaf32-1140-4f6e-ac92-a46ce44eb591","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":180,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"36c65e06-da72-4864-90b8-3d7236420976","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":180,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"3f9004f6-ed7a-43b3-8a2f-260faf0cccf2","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":180,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"835a56ee-26f4-4133-b5d5-f3f7a27e4894","block_type":"box","text":"of principal or interest.","page_number":180,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"acfce791-ed56-4989-a3fe-399b8c30c832","block_type":"box","text":"Note:","page_number":180,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"25dc3e25-ad8e-4d49-89cc-5e92e78b9626","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":180,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"5089430e-6632-4356-9272-bd9c0a3023ee","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":180,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"52544a06-80c8-4d44-835a-cf00eb7e100b","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":180,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"c183205d-11c4-4ece-ac82-03319ddefa9d","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":180,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"d4a5f777-b00b-4870-ae74-951968d5791a","block_type":"box","text":"companies, and securities firms.","page_number":180,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"169ed553-6114-4c3a-aebc-f9f18cf766ab","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":180,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"7bafac19-ed21-495b-b1bd-b1b29b667f1c","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":180,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"10caefa3-8b76-46b5-b384-8674bbfd2f23","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":180,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"f352ef5e-886f-42ad-ae4d-a4058e214b00","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":180,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"ed61d171-57f1-45e9-8e37-482ace891ca1","block_type":"box","text":"that security.","page_number":180,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"2b898276-8eec-4f42-b212-394946632ad4","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":180,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"1a1ed1de-e26b-44e9-9df7-600d1d20a54d","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":180,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"348cb1d9-a3b5-4abf-adf9-fbf782640d9b","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":180,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"ae4b9396-ff68-46ce-8083-ed8fad2b908c","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":180,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"f188aec0-d37b-4cd4-bfc7-978d0259c896","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":180,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"4f36e92f-68d5-434a-bbf8-ed9485581c11","block_type":"box","text":"categories.","page_number":180,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"02a04dae-328b-4150-bfc3-4e323aae15fb","block_type":"box","text":"A-2","page_number":180,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"b5a7fefc-0b19-47e7-b5ca-a1006d21d6f4","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a97afcc-3b8f-4917-ad14-2a771f58b60e","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":181,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"0212ff96-ffcd-4eab-94d1-9d01fda9daf0","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":181,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"6b43814e-fb5b-4e71-a377-f89c90f7236e","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":181,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"3c9c17df-30f6-4f2c-817b-09ee39c118b6","block_type":"box","text":"an issuer’s self-liquidity.","page_number":181,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"ac608377-5bd2-426f-b5fd-274d30a52686","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":181,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"fb7f8afb-f038-45c5-97a4-de78cb74bf05","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":181,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"06b69c20-af0b-4b6d-a018-0028c4fb3e1c","block_type":"box","text":"MIG Ratings","page_number":181,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"d714e0c1-6482-4ddd-8e21-559cab4fe239","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain other short","page_number":181,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"410064b0-9462-42b3-ab70-67ce492af410","block_type":"box","text":"term obligations, which typically mature in three years or less. Under certain circumstances, Moody’s uses the MIG","page_number":181,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"5e68481f-d51a-4a96-b282-861c2c89b2ce","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":181,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"81f1a5a8-1688-42fa-b1ac-16e7fdce2f37","block_type":"box","text":"MIG Scale","page_number":181,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"c01b7536-2539-4c02-8f71-5c9c438fbe2f","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":181,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"d38e1ee4-0ddd-4abf-8451-bfdcb014e1a1","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":181,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"dc83b487-eb52-451a-8d0f-d50b6acb1c37","block_type":"box","text":"refinancing.","page_number":181,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"61fe9d07-0694-4b68-b452-9354091bb46b","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":181,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"091c1a34-2a20-48e9-bbad-f70a6c1704f1","block_type":"box","text":"large as in the preceding group.","page_number":181,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"9c7e5635-7f5c-47be-b12b-42ea5e09dcfb","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":181,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"3a9e6a83-d2f5-4a03-8928-167b5bfaf2d4","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":181,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"24d2a504-00a0-4068-953b-9ffbcb5d40b7","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":181,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"a8b0164f-7f2f-456c-9d4d-90efadfe7173","block_type":"box","text":"lack sufficient margins of protection.","page_number":181,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"fb8ed586-2acb-403b-90e2-b685eb3664e6","block_type":"box","text":"VMIG Ratings","page_number":181,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"8b80532b-4a21-4657-aa2e-05b17cb99c6f","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":181,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"59406f37-f9d0-469d-a558-d139e6fa2d26","block_type":"box","text":"are a long-term rating and a short-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":181,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"f2ac65c1-ddc2-408c-b64a-8a7a531d53b3","block_type":"box","text":"to meet scheduled principal and interest payments. The short-term payment obligation rating addresses the ability of","page_number":181,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"47b7ef2f-9bc0-4385-8cba-db3a7a5d0215","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":181,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"f01eff4a-7172-447d-9c70-590018aacecb","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The short-term demand obligation rating uses the VMIG scale.","page_number":181,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"2a02a99e-ec32-410b-b932-5ed5b2899a1c","block_type":"box","text":"VMIG ratings with liquidity support use as an input the short-term Counterparty Risk Assessment of the support","page_number":181,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"c0f743c3-bd99-4369-8e64-2569023aceff","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third party liquidity support. Transitions of","page_number":181,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"83acd520-3a3e-487b-9430-6483fbfd85b3","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity support differ from transitions on the Prime scale to","page_number":181,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"5cfc9590-91c5-445d-be91-a57cfec99fba","block_type":"box","text":"reflect the risk that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":181,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"3368df1f-b327-42fa-8fb4-d20667eded78","block_type":"box","text":"grade.","page_number":181,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"32d9d744-40d5-44ff-bddb-f49bea4ea7bd","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand feature is","page_number":181,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"3dae6787-5312-4e88-91f2-99e324abc17b","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":181,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"87a0e4a8-d32c-4ee1-b3e0-912c2a8d8c05","block_type":"box","text":"payable only with remarketing proceeds, the short-term demand obligation rating is “NR”.","page_number":181,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"70c41f94-12ce-47c3-972f-6ae2bd65f0e8","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":181,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"a8632b28-cd7f-4d4d-951a-c34089ae7490","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":181,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"7fa28d9f-bdc8-49b4-b454-ace96d6a6943","block_type":"box","text":"liquidity of the corporate obligor.","page_number":181,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"6655341f-b7a9-4036-9aab-fbc57a2611b9","block_type":"box","text":"VMIG Scale","page_number":181,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"3d3fc438-f145-4008-9353-33b19db47be5","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":181,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"e15669d7-e016-4607-9ca3-e02db3c671df","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections.","page_number":181,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"131b6534-b332-4959-9d37-a55f2a124a8f","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":181,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"21588007-2c1a-49b7-a7f9-aa514ca31ac9","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":181,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"9ffba375-16e7-498f-9a2b-661c792c38a9","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":181,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"0f0b25d1-6755-4fd0-8597-dd4e9f6b8f17","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal protections.","page_number":181,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"e433223e-5c7f-4740-b8ca-f69c543192b8","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":181,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"cb425c2d-050d-4c9c-9ba7-b77f74ef8768","block_type":"box","text":"may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or","page_number":181,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"fc6708ab-b68d-4aaa-bea9-7f92cb63109c","block_type":"box","text":"may lack the structural or legal protections.","page_number":181,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"c6c04932-d4a7-4fd7-bad7-0cb3aa2fcd18","block_type":"box","text":"A-3","page_number":181,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"19c41d59-beda-4a47-99f3-eb1fe5c882b2","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f6d60b3-9647-4788-af56-db56f07e3b59","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":182,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"86252d71-8145-460b-84ec-7fc113380ed9","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with respect to a","page_number":182,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"bf136b91-e86e-4c65-b132-5c9c4a8c7790","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":182,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"aafb72f0-9f07-486a-8f59-d7ffbb4cebf5","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of","page_number":182,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"8118a1e6-06f3-4a49-a3bc-7ec21337960c","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":182,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"76490002-8608-4adf-aa04-b70868f1685e","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":182,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"29e00ed2-7bd8-42a4-8459-3f463e3147c6","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":182,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"5fa86b76-e544-49da-a48f-64de6124147f","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":182,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"f1ca5ce1-206e-43b2-87cf-28bf4c77e4a4","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally assigned","page_number":182,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"efb417f6-09cf-4387-94d4-2fa1c339a78d","block_type":"box","text":"to those obligations considered short-term in the relevant market, typically with an original maturity of no more than","page_number":182,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"4b0605e2-9a64-4a75-9a0e-b1e9a7a152c8","block_type":"box","text":"365 days. Short-term issue credit ratings are also used to indicate the creditworthiness of an obligor with respect to","page_number":182,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"13c736b3-4650-4c80-88bb-c2121d04a6bf","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":182,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"68acc56e-4513-43ce-b347-13dcfd748795","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to certain instruments may diverge","page_number":182,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"8ab46f4a-f236-46da-9419-f6f24f250830","block_type":"box","text":"from these guidelines based on market practices.","page_number":182,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"24d3dad0-46d7-4bf6-b61c-e4dd8137fb94","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":182,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"9f400101-18d9-4d40-a85f-6212bf0817a5","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"19eab854-f013-4b80-8efc-d740edfd644c","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":182,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"3b826930-a2b3-46e2-ba7f-245052135355","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":182,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"f49e146f-834f-4a52-83d9-44d866d88676","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"74fca6d7-6383-4614-ad2f-62504254ce52","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":182,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"4db20bf2-5f1f-41b6-89e6-adccbfa60cae","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"7af23aca-fb55-4c0b-9fd2-cd202571eaaa","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":182,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"99654ebf-5c9d-46fc-a0fe-dbf5929ec892","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":182,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"4ca940b8-a33f-4cda-b669-66af2e55d910","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":182,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"14b923f0-a3d1-4627-8832-de4edd1dd51a","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":182,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"43d29d88-be38-4676-aae3-d1a1d4ffffd9","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":182,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"f3377d2e-5c0f-433a-bb98-b990c5906f90","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":182,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"f82dc8df-bbfa-4148-ac99-e1818791d703","block_type":"box","text":"obligations.)","page_number":182,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"8c17e9c8-0d93-44a6-8720-9db96a13e2fc","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":182,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"ceeb70d7-f537-4260-bcf0-d24547025654","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":182,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"abc5fdfa-ce9e-4b58-8c24-736c063e74f9","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":182,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"84dc0b1c-65ec-4585-8130-a9454bbc6bf3","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":182,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"19502272-8440-4da5-a519-a330267e8d7e","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":182,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"58f25927-a3d0-4f9e-80ba-8e9c55f942dc","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":182,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"f566754f-c7b5-4086-a432-44de305ff588","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":182,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"eccea9b8-2975-4d6e-a0b3-50c807bd52c9","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":182,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"9bee3917-b4d7-436c-87e8-39e3c8ca4796","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":182,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"9161fa0d-6cc4-4e3e-9e2e-40de7af95120","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":182,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"139015b4-5a44-466a-a273-6fa47318c727","block_type":"box","text":"financial commitments on the obligation.","page_number":182,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"d8d29ab1-75eb-4e92-8150-e8708d62b90d","block_type":"box","text":"BB,","page_number":182,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"87652d67-1705-4632-b420-b47472459639","block_type":"box","text":"B,","page_number":182,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"39980e22-0445-4c7b-b6dc-10dc9180e290","block_type":"box","text":"CCC,","page_number":182,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"bd840fb9-bffc-4264-9be5-ffe9b2b17197","block_type":"box","text":"CC,","page_number":182,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"4ad75edd-26cd-4ace-a1f1-46edd5d5d23d","block_type":"box","text":"and C","page_number":182,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"75a0ecc3-b39b-4245-a2b4-c74b44930c18","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":182,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"5dbc2389-5523-40f9-85de-dd048867d11b","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":182,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"3479ba3e-ca01-4510-9501-0e32dc050e65","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":182,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"5ddbb2e5-9bc7-416f-b1d1-400c0daffddc","block_type":"box","text":"large uncertainties or major exposure to adverse conditions.","page_number":182,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"fa3c962c-845f-450b-8cc3-b4b72d404e46","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":182,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"d23fe7ee-ca76-455e-9627-288d781aed49","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic","page_number":182,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"aa994ce2-4d10-4fd5-9be6-75f4ac6573ed","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":182,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"d4ebfdf2-6eda-4ef4-a025-b876310e1716","block_type":"box","text":"on the obligation.","page_number":182,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"d25ff46e-3ae8-46c4-b7e5-877aff2bf94e","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":182,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"b3584505-626f-412d-a92b-965685314158","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":182,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"ffdf154e-a96e-4925-8c0b-dcca329f8891","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":182,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"a910311f-61cd-4cf2-bb99-63e228270a08","block_type":"box","text":"financial commitments on the obligation.","page_number":182,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"9556ad54-a5fd-462a-bf54-a828b85a3ec4","block_type":"box","text":"A-4","page_number":182,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"555d1bc4-92c0-4c82-a893-98aaa5371071","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"30245aa1-cbcf-4947-a2ee-1da3ab6f5eba","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":183,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"8e61ecf7-4c3a-4a88-87b3-faed552e46d5","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":183,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"2dd9bcd2-0927-4e8d-84ab-6ecca6030cfb","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":183,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"cc212d7d-86fe-4cba-bdbe-4d75a04131bb","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":183,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"b0570706-8039-4943-81f7-8c14f1a3cf05","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":183,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"7b0a18da-6d7a-4798-8125-e4d07825cfed","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a virtual certainty, regardless of the","page_number":183,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"dc0cf8d9-066d-4407-8547-6b13590d89c3","block_type":"box","text":"anticipated time to default.","page_number":183,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"277387fd-cb91-4ef4-8594-551d475c3e88","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":183,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"d23ada63-1359-44b5-a5f6-0dba635a6b99","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":183,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"5086555f-b699-4eca-ae16-8ea140d45ca3","block_type":"box","text":"higher.","page_number":183,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"c30cad00-066a-4bce-9423-d7a3915c3d77","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":183,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"a058958f-f71c-4d8b-8bae-3d6e7bd94b77","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":183,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"8df539b5-c333-472a-9119-eb3196c202c3","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":183,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"c0ebd584-eee3-41f1-97f8-816ec3cf00ed","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":183,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"39cc380e-81b9-4ee4-84f7-9b77cda622d7","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":183,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"7689adb0-f33a-480f-b9e2-5436405d942b","block_type":"box","text":"action and where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":183,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"8b5b1741-55af-4aa3-a0e2-b2d88a89aabe","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":183,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"fad1cfef-ae5f-4a1e-a438-e7de948e152c","block_type":"box","text":"restructuring.","page_number":183,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"e2797943-f278-462a-b375-768bf745158b","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":183,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"9add7185-01da-4f32-ba2e-09c136fa7483","block_type":"box","text":"standing within the rating categories.","page_number":183,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"e7bddb1c-180c-4bc6-b2b5-cd522889057a","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":183,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"90999ff0-f9a4-403d-94b2-01082f249993","block_type":"box","text":"A-1 A short-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":183,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"71729927-102c-4ac7-9779-e97aee52b6c5","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations","page_number":183,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"b6b568f0-1a6d-41ce-ada8-7474caa6c60a","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":183,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"2923e8d2-e05d-4701-b2ae-ed8c875d6fc6","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":183,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"4d43cca4-c3a2-48e9-9694-c3578704bd8c","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":183,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"c688056c-b32b-4ba1-a61b-7c077e3be3e0","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":183,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"f526638e-3829-4bfd-906d-c8b66e0b3ee5","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":183,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"1a5fea6e-fd45-465b-a464-c79e1778c4a4","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":183,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"21ab7238-e477-4467-859d-b3e3f92f082e","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":183,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"59769937-758f-45ec-a426-b2927601f146","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":183,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"6d525b0a-35eb-4346-b644-eb532997fb6a","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":183,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"5b526b0a-6599-422d-82c4-649dc6a9c678","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":183,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"9a8013ff-1bbf-4f06-bf5a-5377a269db2e","block_type":"box","text":"it faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":183,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"8def2d66-f342-4415-9e1d-fbd8e3446821","block_type":"box","text":"financial commitments.","page_number":183,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"3d21d6ca-a47c-4407-9a8a-dfd61ebf7806","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":183,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"e6b75952-bd9f-46b0-bdec-f9946bb51f2c","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":183,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"a77c2701-7385-4850-9d8a-5ae7563b81b6","block_type":"box","text":"commitments on the obligation.","page_number":183,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"66aa635a-9013-4ba3-9b58-702785fe12de","block_type":"box","text":"D A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":183,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"5f875fa9-150a-4f75-bc5e-2e8fe54a69b6","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":183,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"9db13909-1ee2-4452-8f8f-c0c6df21eadc","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":183,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"7628c65d-6a6c-4082-b318-6eb0b7cb68ef","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":183,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"17c7e255-90eb-45fb-a9c6-7009d25c94d0","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":183,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"a127a323-c609-4970-b4e0-c8eb14bba208","block_type":"box","text":"of a similar action and where default on an obligation is a virtual certainty, for example due to","page_number":183,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"a850b00b-eeff-4a19-925d-1af91600e4a3","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":183,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"252644c2-8c74-49dd-9710-4911f3aba9e0","block_type":"box","text":"debt restructuring.","page_number":183,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"d485c4b8-048f-4601-a334-2862e329699e","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":183,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"c2d6411b-9e4a-4908-b9b8-75e1614c201e","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":183,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"aff27479-f8fb-4165-9fac-e313be11886f","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":183,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"60df49ec-7d7a-4625-a440-9f16076109a6","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":183,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"651190d5-5528-4756-be80-a95c58dd6301","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":183,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"72689f34-0b0e-4508-8c98-3e4a1b21b3ef","block_type":"box","text":"A-5","page_number":183,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"debc1b43-5e19-4f37-9f3a-cbf50de57d05","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d47af0ae-15e3-4a2d-9491-351e40c91d9b","block_type":"box","text":"•","page_number":184,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"59a3a716-9eae-4f4b-8daf-163de5fdac70","block_type":"box","text":"Amortization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":184,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"16779fe5-a9e9-46c4-b868-ac259d1239ad","block_type":"box","text":"as a note; and","page_number":184,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"d16780ff-9c36-49ec-be3f-dd78cd3cd8e6","block_type":"box","text":"•","page_number":184,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"71c24141-8121-469f-acfc-231d837e17a4","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":184,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"aae4bf10-45bc-486b-af03-28afb1deaa3b","block_type":"box","text":"treated as a note.","page_number":184,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"b09695a9-0ac0-4abc-b3c3-f53569e0007d","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":184,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"ef431d88-375b-4463-89fd-1358b06fbbf7","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":184,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"b978092c-333d-4fc5-aba7-9a745bb5f34f","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":184,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"0e5a31e4-2667-4ca4-9ba6-51f7805af215","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":184,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"513091a4-b667-4fc0-8a81-4ca468168399","block_type":"box","text":"economic changes over the term of the notes.","page_number":184,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"ca69792b-72c3-469e-b36d-1ef860093a68","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":184,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"406b0386-4350-4c79-a397-9a88fe46670e","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":184,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"c188763c-1ea1-4927-a7c8-47ab6f65f08d","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":184,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"d8af052b-f7be-4775-9016-53cb2c115ac3","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":184,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"c3f55cb7-847e-4f66-bb55-c5533ad6e5fa","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":184,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"17a1f30d-6a10-48fd-a488-915961874a73","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":184,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"fde500ce-9c22-4800-965a-541d93bc6402","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":184,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"ac337016-2538-4b1a-82cc-3d7c231fcec7","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":184,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"321d678e-62b0-416e-8bf0-fc717276148a","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":184,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"742bd7c9-f59a-412f-a221-8ae3c2b5c422","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":184,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"d2e73d55-eb2e-4972-ba26-fd2c14183cac","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":184,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"71405373-9a79-4769-9f3e-a87fa0b1068b","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":184,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"fb30be84-ea80-48a4-b191-4520f5150ba2","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":184,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"764a8006-1401-42b2-803c-58a43cdaee10","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty","page_number":184,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"4fd0786f-0b44-4a68-b3d4-faa0f8855b1d","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":184,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"8e04cf6e-6f93-4fda-b4ac-c6800c974786","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":184,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"8b2e177e-9791-49c6-954f-67f3c1e4c9b7","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":184,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"84becb9f-2c19-4ec8-8b89-f387b6212c4c","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":184,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"a8096963-97f9-46b1-bedc-61f018cac11a","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":184,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"93332e75-0b37-4085-aab4-f7064bbcacae","block_type":"box","text":"receivables or other financial assets.","page_number":184,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"5d42e968-9fac-4791-851d-2e64baa6d9b0","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to","page_number":184,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"b3dd4795-f96e-4836-b0a7-abd6a61c9e98","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":184,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"287c675f-4727-4861-a2ea-3fbac29ce66d","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":184,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"af4b3bd8-73c0-4cdf-955f-f3175c5dc845","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":184,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"687cec98-5382-462f-91e8-bbc86c8d2e2c","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":184,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"1ed13939-55dc-42ac-bef6-84da23d11588","block_type":"box","text":"occurred.","page_number":184,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"47667b81-8742-49b4-8efa-ef83f8026fc1","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":184,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"c79dcad1-06c1-498d-b390-00dc765220e3","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":184,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"9065b661-703e-4823-a228-874413e14d68","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":184,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"793be980-47e7-46e7-8488-9b38c6e7dcd8","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":184,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"73a3ad68-29f3-4909-9a8d-10503435d033","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not deal with","page_number":184,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"1bf6c501-2ea4-4918-bc10-e1640b5ceb80","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":184,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"8d1a82e1-6eb5-4f65-a6d1-2e30ca3eb909","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":184,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"d57abc84-3f34-4833-902e-c7ec1387aa49","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":184,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"4232fb74-9f7c-4705-b590-63439d05af8e","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":184,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"e9f6a4f3-d7c0-4dbd-ad43-896c87afa0b7","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":184,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"005842a0-9895-480f-b9cb-9dd498a69ed9","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":184,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"ec2bff4e-ec5b-4e9e-8906-8c2bfa05d2dd","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":184,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"962a642c-3668-483a-9ac4-7efde7e46ea9","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":184,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"3398ebe2-4cdf-463b-8d76-dcd537781cb6","block_type":"box","text":"i.e.","page_number":184,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"64ac548d-09fa-4e04-ba51-c23f2f0576f4","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":184,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"974d05cc-a002-4882-9dd0-1ca609196ff3","block_type":"box","text":"the obligation’s documentation).","page_number":184,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"78e94602-37e3-4844-bb09-f000de0559d4","block_type":"box","text":"A-6","page_number":184,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"cbefaf36-8fc0-4840-82b8-c78264f07e5c","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5ff4862d-1bfd-4d8f-9266-b0b97d02e8dc","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or certain note","page_number":185,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"183cee23-4d2f-4911-bd1b-b9d00ccc7ff8","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":185,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"89cf39f1-5171-4cef-b258-b24ac5438444","block_type":"box","text":"agents in the form of a rating letter.","page_number":185,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"64ea5595-90d9-4ede-9445-22cc63cb2423","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":185,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"835d18c0-d52f-404a-9324-b6b1741f225b","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":185,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"9bb5e5d4-ba3e-4e9d-b6ae-0205bda44b4e","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":185,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"4ffccec5-fa29-48fa-893b-7dacbfa9cad9","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":185,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"b922534e-fc9d-4261-89ac-9aa1fb057880","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":185,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"ead488f6-68f1-4f39-8453-3f19c28ed924","block_type":"box","text":"e.g.","page_number":185,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"441bb23e-7161-47a3-baf9-7740f9f764eb","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":185,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"2eb1b226-ce36-413f-bbee-35e52da9582c","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":185,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"8d451d33-91f5-4b7d-ae54-9b9e67269680","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":185,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"ff66f8cd-63f5-4d3e-9c9d-bcbe5d3f21d1","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":185,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"ff36f7b6-00b8-4651-984f-f9001845d57d","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":185,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"0dad3581-a303-4274-9ec6-2564ffe720a0","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":185,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"15d73060-e42c-410a-bcfb-63f0c46764c7","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":185,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"fd66fd94-28e7-4f84-9c8d-b1fa25148672","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":185,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"1973b92c-1bc9-41cc-9e58-c43df6c04382","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":185,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"46880bae-0e0a-42cd-943b-6316aa27a5c4","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":185,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"4a9e517d-c13a-42df-b004-6765352b7230","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":185,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"c4cc247b-602d-49da-9cf6-676d8c23787d","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":185,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"b55ede61-cc94-4ede-92d5-017aa5f97869","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":185,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"814ccc80-e46e-447a-9641-7fed3cac0468","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":185,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"b0dcf408-b097-4d1f-a3e0-9efb65843cbb","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":185,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"1403a2f6-7617-4bc9-a65b-d11b2c655eaf","block_type":"box","text":"Ratings.","page_number":185,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"4fd8c523-e042-489f-ac0c-338f8c937af5","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":185,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"482c0bfb-53c9-4f74-b7ff-33c106306ba6","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":185,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"85e6e0ea-534f-43b2-a7b8-54fd391fae79","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":185,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"15064742-8732-498e-b351-d3d834bdc060","block_type":"box","text":"obligation ratings.","page_number":185,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"674bca51-b88b-400f-8d55-7d96671e2d41","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":185,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"fe33a445-5e20-48a7-a5aa-d559a7f92def","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":185,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"231d79bd-16fc-4473-8320-0405799c2e46","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":185,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"5a51e3a8-dea3-4aa2-9aaa-c26303789031","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":185,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"e8a46346-1167-431a-b667-16b559beb688","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":185,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"6d7ae8f3-30ba-4113-acc6-6360ed85f465","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":185,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"611dfa9b-aa37-4ab4-8f70-27701e1a9c24","block_type":"box","text":"to foreseeable events.","page_number":185,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"f2a08e19-c805-4ac9-86d5-3b1fdb1f2459","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":185,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"85ad7cbb-43ef-4382-a6eb-8a1853f6e936","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable","page_number":185,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"2691117f-a9a7-43a8-8981-4241e9bd56fd","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":185,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"f26e62e0-aa97-4b1c-a550-d22caf6c01bd","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":185,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"819fcd39-83e6-43b1-abce-28dc8214d757","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":185,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"c8ea29aa-ede2-49d3-acc9-e41d2207fe12","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":185,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"8d5fde50-8c8f-4920-a110-15e93a3ce186","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of","page_number":185,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"92f39e07-fc8d-4016-959a-53d7115e79bb","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":185,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"7a70a2e6-363d-4d13-bcae-a89349ad07f4","block_type":"box","text":"flexibility exists that supports the servicing of financial commitments.","page_number":185,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"9eaebb78-9432-4608-9b69-6c5357cffe7b","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":185,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"0d2e3bf7-9eb4-4539-b404-fdebec397ef9","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":185,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"0c6e185f-037f-4557-9671-f2c90ab848c0","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":185,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"e7487ce7-f7d3-4f0d-88e0-472ebfd06db9","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":185,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"76d0b3e3-2b79-44df-b6ce-3b38db3e675c","block_type":"box","text":"possibility.","page_number":185,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"561a20a3-4e74-44be-8e20-b499a44ace66","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":185,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"2feb9eb0-1981-456e-ab8e-7f98111781ac","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":185,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"dee56f26-1747-44aa-9133-11b90c321db4","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":185,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"5acca429-83f9-4d5b-8936-1f3f0e0f5b19","block_type":"box","text":"A-7","page_number":185,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"3d154bfd-9e4b-4bc2-b1b8-6bf4552d553e","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"df5aed0f-8e0e-4651-ac6c-41cbdf2a7b02","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":186,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"60db2ec6-6358-4c3d-9d27-db039203d5ad","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":186,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"3e3fca23-b393-44b2-9255-aeae01e15351","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":186,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"465012b5-ae77-4b57-93f9-ac5ac6a57996","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":186,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"725e94db-63c7-4a87-9dd4-017bef183c71","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":186,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"51164fa7-22e3-498b-817c-aa0b345788a4","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":186,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"3e120cf7-204a-4bdf-b3f9-2df8c19e5d73","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":186,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"cad0af8c-e23a-4899-9b0c-22e433281a85","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":186,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"c7533f5e-dbcf-45c0-8a69-2febfdd90b1c","block_type":"box","text":"relative status within major rating categories.","page_number":186,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"555daedd-d4ed-452e-ac74-f63e14bb20ea","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":186,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"663f26b0-942c-43be-9f7f-9688b1ec0375","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the short-term rating","page_number":186,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"c60a740d-aeaf-4364-a809-39c36c5a028b","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":186,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"0880becb-961f-4e0e-b963-7f023e61f245","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":186,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"ff98a2d5-d8dc-4908-8224-d79192b5b281","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated","page_number":186,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"cc2f1a05-4924-4a9e-93d4-cbdaad5b431b","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":186,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"c0ba3b65-ec5b-42c2-970c-9b0a9464c4d8","block_type":"box","text":"relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to","page_number":186,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"f9470ff0-252e-471b-9649-9b2d84cbafa7","block_type":"box","text":"obligations whose initial maturity is viewed as “short term” based on market convention. Typically, this means up to","page_number":186,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"ad957183-5495-43e8-b588-15d08cbc1fe9","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":186,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"55cce826-5991-46dc-a188-081c3b8dc7fd","block_type":"box","text":"finance markets.","page_number":186,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"24ea5ea7-4fa3-4bf1-8b09-09d5b108411a","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":186,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"1e7c5dc4-60b6-474c-ab4b-c0eeae67636a","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":186,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"f0b547f0-09e7-40c1-b480-6f21480a2d15","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":186,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"4efb04f4-9823-4871-a2c3-44b47fcf8224","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":186,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"f66a4222-cffa-41b1-8ed8-2b5b44467534","block_type":"box","text":"commitments.","page_number":186,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"abc75b54-4adf-4d64-b6d5-52e72800b3aa","block_type":"box","text":"F3 Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":186,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"b5e65850-36fa-44a9-b11f-9faab851d4eb","block_type":"box","text":"adequate.","page_number":186,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"3d667758-182b-4f3e-a6b2-20784c6efb19","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":186,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"0fc70328-7225-4a20-a348-57cc47f16e4a","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":186,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"2820dccc-89e3-4b59-af12-724127f0105a","block_type":"box","text":"economic conditions.","page_number":186,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"f9f73791-cd34-46d7-9405-8802df3086ca","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":186,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"f818d37c-5c46-44f3-9d68-98d645ee05e6","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":186,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"4d7d6f85-1085-456a-81f7-f54ed4c4ada8","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":186,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"2bd7d9d9-781a-4e14-9e9f-05a3245d15a5","block_type":"box","text":"ratings only.","page_number":186,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"04956c77-a2a6-4914-94f5-b9e4e42b582b","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a short-term","page_number":186,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"f5eccfd7-21d7-41ab-8866-19aa1273f777","block_type":"box","text":"obligation.","page_number":186,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"6729aa3d-b6a9-4e13-822c-a796aa27db1d","block_type":"box","text":"A-8","page_number":186,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"a5f3af4d-21be-4b8e-ae48-129928203637","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":186,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"78b79416-ac7d-4022-bd0b-439e42b94e37","block_type":"box","text":"APPENDIX B","page_number":187,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"ca4f944b-edf9-4060-8d51-509a1a7b0542","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting 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The guidance informs the voting recommendations BAIS","page_number":191,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"c18b8c1f-d073-4779-a198-3b27ca106df4","block_type":"box","text":"makes to BlackRock’s active portfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":191,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"250b26b4-34a3-4894-a40f-f2888bb408ab","block_type":"box","text":"equity, systematic equity and multi-asset solutions strategies. It also may apply to holdings in BlackRock’s index and","page_number":191,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"1de12918-9ac5-4236-bd58-a2cef09488e4","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":191,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"20148cb0-ffc4-4167-bed1-d9a19feca77d","block_type":"box","text":"The guidelines are not prescriptive as active portfolio managers have discretion as to how they integrate these","page_number":191,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"05bbde37-ad5c-499b-9233-3741d6cd310d","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":191,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"bf5806a5-750b-46c1-b00e-5ce19dfbb221","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":191,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"a8f5b8df-0e7f-4064-a54e-d9eed5b9183f","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":191,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"e2a89555-8ced-494f-8260-d330ab329bf8","block_type":"box","text":"1","page_number":191,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"e2d368c4-fb59-4d46-b7f4-92534597d86c","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":191,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"50568685-24b8-4583-9883-484d57d4f289","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":191,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"2eb3feea-17c8-44e6-8ec7-6f5814346ab8","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":191,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"f0f37b48-0c4c-44f2-9049-5d01f5e5adda","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":191,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"71bc549d-7cbe-433d-a758-37ae06b82916","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":191,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"b6d5a2f0-ecb2-49c2-90f8-7d5a9280588f","block_type":"box","text":"2","page_number":191,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"57ed144f-97fb-4dc9-bb2a-07995aea5e6b","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part","page_number":191,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"a8478de0-b559-4124-9b88-6549100bce5d","block_type":"box","text":"of a strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. As a","page_number":191,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"a316ef68-a81a-4dda-aef2-8ed56916dbab","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":191,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"d9578ace-c6fa-42e9-8571-fc5a7d2c0e7c","block_type":"box","text":"policies.","page_number":191,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"fedefa1f-b06c-480a-8d3c-f9cf88bbbdbf","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"88c40413-42c2-4eec-8954-8f662a803e60","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":191,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"e19917f5-4a8f-4e15-9901-3c6483f699b9","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":191,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"43d6999c-6ffd-4185-9273-bc697245f18c","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":192,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"ca080d8d-784f-4022-92a7-3a49e727ff4a","block_type":"box","text":"BlackRock’s mission is to help more people invest better. The money BlackRock manages is not its own — it","page_number":192,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"27604932-4fe4-4c38-9572-ccc34c0e74fb","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio construction decisions.","page_number":192,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"374b2c58-91ae-4860-9ea7-bf47f727b143","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":192,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"df553af4-25b4-4a00-a390-d4ca4e28ac76","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":192,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"80902073-a09e-4670-9a20-85b0531491ac","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":192,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"5d279e56-bd62-4b2d-ac9a-b30c6a2c0030","block_type":"box","text":"this work with research, data and analytics.","page_number":192,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"aa1e96c7-56c6-470d-99aa-eca7fddf7a3a","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":192,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"7f5cf5dd-e83f-44f4-bafa-76659ced07d8","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":192,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"5f62a4e0-7be1-427b-9a00-5f59bc29eed1","block_type":"box","text":"practices that, in our experience, support companies in delivering durable, risk-adjusted financial returns over time.","page_number":192,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"535cff88-061a-4b85-b0ed-0c3030b956a6","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":192,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"51266c75-a544-40a9-b14f-f562ce01d335","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":192,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"c69172ee-8e05-447c-95b8-e8c2981f5e3d","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":192,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"87e3f5a3-0348-40e8-b5d5-c4ed476fe030","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management Group and","page_number":192,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"0cd72aac-4952-403c-aca1-e0617eb85c7f","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":192,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"048e12e5-30d4-42e1-80f2-a248c15f3ea8","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":192,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"c3126798-91ad-4862-b35c-c37d11289c1c","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":192,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"efc4e5c7-4d75-447c-8f6b-20bc766ef5e2","block_type":"box","text":"investment analysts and portfolio managers, with whom we work closely in engaging companies and voting at","page_number":192,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"2e789c5e-77ba-492e-9f9f-4e51b9481d0b","block_type":"box","text":"shareholder meetings.","page_number":192,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"1f8ea6e7-9129-4fca-9c53-79b22b991ddd","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":192,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"2e83e20f-70e6-459d-8c83-d1db6df45b0a","block_type":"box","text":"investing.","page_number":192,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"447f06fa-033c-40d6-94bf-e8fb08f6f1a4","block_type":"box","text":"3","page_number":192,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"26b4eaf2-c556-4294-a810-8e1c576b9692","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":192,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"27b483de-f57e-4018-8bb0-47e0c8b85aba","block_type":"box","text":"manage risks and opportunities to deliver durable, risk-adjusted financial returns. Portfolio managers and","page_number":192,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"ba7f8a5a-1005-4880-baa2-c086ad2eeba5","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":192,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"b34aa931-6404-4d65-a135-43fb052e52db","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":192,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"861ab02b-4aa8-4b43-95a9-f6ce8d75fae0","block_type":"box","text":"corporate strategy, capital structure and financial performance, operations and material sustainability-related risks,","page_number":192,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"f69a8ac2-2b0e-4e6c-b82d-114ceb945420","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":192,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"60c1e2ab-43e5-498b-ae35-5ec3f3493dcb","block_type":"box","text":"supportive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":192,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"1704c8a5-8c12-4534-89e0-489c6598c6ed","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":192,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"b89a742f-957c-43de-b238-05172e675aa2","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":192,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"8a9bb9fb-537d-4d66-b960-a8b70c64e2ff","block_type":"box","text":"each portfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":192,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"bc4dfd31-f7c3-4fe3-aa82-e3cb0c08438d","block_type":"box","text":"vote the holdings in Systematic Active Equity portfolios in accordance with these guidelines. We provide voting","page_number":192,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"97573d2b-6042-4a88-bab5-c98fd2d2ce6e","block_type":"box","text":"recommendations to fundamental equity portfolio managers, who may determine to vote differently based on each","page_number":192,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"405e868f-4377-417d-9bec-5073ccb68836","block_type":"box","text":"portfolio’s investment objectives and strategy.","page_number":192,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"18b929b3-4210-4aec-9b7d-69c60aa4ee22","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":192,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"779181e1-db2b-43be-bebe-7a16294cc2d8","block_type":"box","text":"management teams and board directors","page_number":192,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"1b57801d-7654-4056-8d12-bb1847608b9e","block_type":"box","text":"4","page_number":192,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"ba7ba57e-2c73-4e47-835e-5d8b559a3f89","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":192,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"9860c53d-4f46-412b-970e-407e03db27f2","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":192,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"5ad556ea-b83d-453b-97c7-2313aa0dbc7e","block_type":"box","text":"applicable elements of governance that support a company’s ability to manage material risks and opportunities and","page_number":192,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"f2d99c2c-b925-4b54-b98c-ca955a8b6412","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":192,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"0fd086fc-8b41-4bab-b6d9-f371270b9c41","block_type":"box","text":"norms within their local markets or, particularly in markets without well-established norms, aspire to widely","page_number":192,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"567ff049-8453-4c34-91bd-5642ec935f34","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":192,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"19d069c3-5c62-4d29-89fa-17d68b4f2737","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":192,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"390d61f3-ba50-4a9a-8229-6aa1a7b7c2f0","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":192,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"9cc70a5b-c714-410f-a75a-12b414e2f304","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":192,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"bf5e0bfb-fda8-4db1-951d-a30d70bcaeb6","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":192,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"bbf52e6f-9efb-42a5-a5fb-d18fb02acde7","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an important mechanism for investors to express","page_number":192,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"3a216cd2-6e2b-4135-ae05-b57773c706d9","block_type":"box","text":"support for, or concern about, a company’s performance. As a fiduciary, BlackRock is legally required to make proxy","page_number":192,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"30741d0a-379b-47c1-ad2e-1fa84efd4b7a","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":192,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"b40b7119-a769-4bb2-9088-c82507f31481","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":192,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"e2f768cf-a6b5-4084-9eb5-8608c6181ab7","block_type":"box","text":"3","page_number":192,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"36e3a755-ef2c-4859-a560-b6037cfc9f65","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":192,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"685aaf2c-7d1d-4195-af11-7f7eb85dcace","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":192,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"8d00f846-23d6-4f72-95fa-99b0c995d7eb","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":192,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"2fbbd982-adc8-4e6f-adfc-c0e6556baa0e","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":192,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"51c48b77-44ca-44f6-ba4a-f33639902c58","block_type":"box","text":"4","page_number":192,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"b72cc80d-436d-403d-94d1-3f87850c8ef7","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":192,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"9673d4f5-eee7-4756-957c-c684763c7553","block_type":"box","text":"boards and their members, where relevant.","page_number":192,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"e53c295c-e20c-4aef-b6ec-edb19e83c60d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"bdeee8d9-e375-4396-8201-1507cd074993","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":192,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"988505f6-c02d-4498-8e8f-d259cea86e9f","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":192,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"185d21c1-026c-40cc-84a8-885d555a4fad","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As indicated","page_number":193,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"ea09afba-83db-4607-ab6b-9b2a30824e7f","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":193,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"ae96a5c7-422a-46b9-a853-dd6b0591e122","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":193,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"27a5cc58-4766-4aff-98bd-da98b4fde829","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":193,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"0da3a6cc-a7b8-40f6-87b5-228ae4fc21cb","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":193,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"a42d61cb-9acb-4ccd-9037-3cd984385604","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":193,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"bb5c8252-cbed-4adb-ad36-5284709e7d32","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":193,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"79f1a55a-d7eb-4012-b3a8-33781936e5fc","block_type":"box","text":"5","page_number":193,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"cd95ccc9-9269-42e7-8e36-668cf2abd720","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":193,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"70147b98-beb8-440e-8db8-c86924f1fbd1","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":193,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"21718b0d-6e40-4807-b6da-83fe08424696","block_type":"box","text":"component of fixed income investment strategies at BlackRock, particularly for those with sustainability objectives in","page_number":193,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"d877375b-822a-433a-93c7-2285531afca7","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are undertaken in","page_number":193,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"ee8d3e20-064e-4226-8042-b23216e70a0b","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":193,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"aa5c68fb-f439-4687-8738-c47b9c570f3c","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":193,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"2daa5d64-3149-460b-abdc-efa491e0df23","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":193,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"1477f701-6f6a-4a48-a6b9-9ddcc5c85c50","block_type":"box","text":"5","page_number":193,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"f54810e8-c321-440b-beae-564025b68ddd","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":193,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"e7699475-a604-4b82-a6ef-9a56d880a997","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":193,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"d5ea68dc-8045-4a28-bf4e-b3b35f882360","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":193,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"893abf4c-d7e2-4e84-8f2e-df1ff8a1fbae","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ebba8d5e-2123-46bd-89cd-4d036e49e9b1","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":193,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"f89e624a-e770-451c-a225-b8e138825fb5","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":193,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4d423e52-7f51-4ade-879c-2ff9b30f1b4a","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":194,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"cbfa27d9-ead2-4f94-a404-1bd9a23f0778","block_type":"box","text":"Roles and responsibilities","page_number":194,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"aaa63034-cf53-4a54-b626-5e970f0dc22b","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":194,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"a50480e5-d564-4051-8fc6-d96c34b65c9e","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":194,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"5fda8e3c-3e3c-4493-b289-81f9fe00c2ba","block_type":"box","text":"6","page_number":194,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"fe3fdad3-60c6-424b-8bed-ace32f4f33ac","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":194,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"6fbf4b5d-3e57-43cc-83d2-ad1c0eb3ff9f","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":194,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"4c2f3f08-aedb-4cb4-9224-d47e9c3d2982","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":194,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"f08b0c5c-6eb5-4a87-a720-743666fe0398","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":194,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"5f4caa47-50dd-4329-b95e-4281210e57b2","block_type":"box","text":"performance over time.","page_number":194,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"39fc80c6-4785-4f7a-b4e2-81a62abf307b","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":194,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"985ea74f-ce04-4c6a-9597-46ceb0755d03","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":194,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"30647adc-6428-4068-aff0-e0a92d6a70f8","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":194,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"1c8d58f2-7c7c-4e63-b372-cdde57cbea2b","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the performance of the CEO","page_number":194,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"1ff8ff6b-363c-45a4-803e-bc0191eef05c","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":194,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"3a3b0561-4a07-4d99-9073-a0324db8008e","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":194,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"eefc75ba-7dc1-47ba-b160-07b41be19578","block_type":"box","text":"Composition and effectiveness","page_number":194,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"20bec674-6aa5-4e20-b0e2-8d7954fc7a40","block_type":"box","text":"Appointment process","page_number":194,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"9fbabdf9-d5bf-466d-b433-6ad42dc76af6","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":194,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"2cd60137-0d5a-4b1a-a4b3-1e7e63d44863","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":194,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"40dc744c-c6f8-460e-93ca-0f9c317d9f99","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":194,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"5a839b4c-e6dc-43fb-b396-a26c114b2f66","block_type":"box","text":"e.g.","page_number":194,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"aac5d1cc-513c-4b58-b6df-498e57c995f9","block_type":"box","text":", sector, maturity, geographic","page_number":194,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"68e6a41e-c39c-400c-969b-c97949d4e0d2","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":194,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"62499ee5-f770-4e98-95be-77d855e4fee3","block_type":"box","text":"e.g.","page_number":194,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"ddf8c209-52e9-4bb3-b9b2-3b09dc595541","block_type":"box","text":", financial expertise, industry track record). To","page_number":194,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"ed5be9b1-16fe-4420-90ad-6352ace31751","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":194,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"7a818907-c340-49bb-b0ad-66f6f24e1ef2","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":194,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"848050a9-9883-46bd-b41b-087328f5c06c","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":194,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"e2433550-0c2c-4ec7-b0e9-bdae42571d85","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":194,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"6f98d44c-5841-4515-acb8-2fa1862e4e42","block_type":"box","text":"and local market requirements.","page_number":194,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"c77c56f9-bb9c-45f3-a22b-a2ae93f59d98","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any particular board","page_number":194,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"1d9f4f54-a6c0-44d7-933a-4aad9fcf65b1","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":194,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"1e0c49b3-3a5d-4bd5-a6a0-4bbbd4a258a8","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":194,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"de629124-fbc0-49eb-89b0-fd7cc059c672","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":194,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"49dc26a2-e2c6-402c-8086-ad945ccc7d61","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to support strong financial","page_number":194,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"a8f48c87-cf2e-49fb-aabc-ac79107c0a25","block_type":"box","text":"performance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":194,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"a3b8d0b9-e9aa-48fd-aa21-787078815bcf","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":194,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"896ac236-88f8-4a56-9fa8-55cb9f67d45e","block_type":"box","text":"Independence","page_number":194,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"a70c72b0-b5ce-4b67-8d9e-730b8b6f3236","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":194,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"8dda01d4-71a1-429c-a4d5-b87f7fdd9902","block_type":"box","text":"e.g.","page_number":194,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"8bdbb77b-3ff3-4ab6-8460-2bc5c21a3bfa","block_type":"box","text":", government or","page_number":194,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"a301d45b-9287-41f1-9546-c6d4f2fa0901","block_type":"box","text":"employees) is of paramount importance to the protection of the interests of minority shareholders such as","page_number":194,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"e0cfeb7f-decf-4e2c-837d-effb21e24b1c","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":194,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"b91342a7-53fe-4895-935b-f1816e18ad9e","block_type":"box","text":"conflicts of interest or undue influence.","page_number":194,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"81770b35-20f5-4449-aa06-f27b49828ce8","block_type":"box","text":"7","page_number":194,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"368f9c64-53b8-4c5d-9a1a-17c049753a0a","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":194,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"cc72da4f-5826-44cb-9734-d274dd3bf90f","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":194,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"73cd8265-a48d-4056-8686-cba0f9687bc4","block_type":"box","text":"independence should meet those local requirements.","page_number":194,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"22e9aba1-6bc6-469a-bac8-1718b36aeeef","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":194,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"f73d8885-57ee-4f56-9d7f-9760537b14e0","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":194,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"7fe8f322-5508-4a22-86c6-bd787cc10a8d","block_type":"box","text":"composition if this is a perennial issue.","page_number":194,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"b9fc3a32-8bd1-4747-be96-bcf5aacf656b","block_type":"box","text":"6","page_number":194,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"ae35ffa1-fe63-448e-8ff5-17846f6487a1","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":194,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"bfc6ecdc-9f24-4948-9b6f-efa3adb3b351","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":194,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"c572cbc9-5561-43b2-834e-282e1f0bd776","block_type":"box","text":"7","page_number":194,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"fc45e6b8-4bb1-4dfa-b0dd-3947b3e16d8d","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":194,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"3e9ae26e-8b0f-4e4e-8177-dfbd2e794a1e","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":194,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"b963d643-0caf-4948-8021-353b47a6a841","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":194,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"1fb5d43f-cc8e-4c80-b18a-317d80976e0f","block_type":"box","text":"could, or could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests","page_number":194,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"c059e664-a86e-4875-b373-6879d068ed3f","block_type":"box","text":"of the company and shareholders.","page_number":194,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"9fd4ba22-3bf4-4002-abf9-1dc1dc7d407b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"24ddc217-83de-4cb3-b866-80c568f11751","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":194,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"1587edab-f41e-4780-bdde-0601e8389da6","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":194,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"04d7de0b-58c4-40b7-9602-785b2f1086d9","block_type":"box","text":"Independent board leadership","page_number":195,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"75100fbc-030d-4748-b83b-c75a53590ad4","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":195,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"c7206fb6-7c80-4a6b-bbd3-a72d7a1f9594","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":195,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"fc24e6dc-1025-40f3-b031-c83dfa9681c1","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":195,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"ab6e6e7a-b7c4-4090-a585-5dd700827712","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":195,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"c859348d-7373-4ee0-aa1f-da3e4203dc28","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":195,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"6601ef3c-a12d-4f96-b36b-88f5f572f3b6","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":195,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"18aff763-b0ce-4e24-97ff-d22c3ce92e8a","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":195,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"5d77a0f6-4f67-403f-9b38-d28d0b6dd4ed","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board leadership model and","page_number":195,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"922a0a0c-d995-4f88-ba31-2e2d43a99ef3","block_type":"box","text":"how it serves the interests of shareholders.","page_number":195,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"be79d30e-76b8-47ad-bd81-e152a24f8a6c","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":195,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"ad53c5f3-4ab8-4e7f-a8aa-5997760fa92f","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board performance. We may vote against","page_number":195,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"e43aeeab-e068-4759-8c57-ac674bfafb7f","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":195,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"9a0273de-fb36-4cd3-9297-bf13bb454064","block_type":"box","text":"Tenure and succession","page_number":195,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"bdc4ae3b-55b9-44c5-8d46-bc48df8b5164","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":195,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"f4cc08aa-5099-40cd-97fe-03a4a8d0f78e","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":195,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"2c93c194-f2f8-46db-bcc9-85bcc3429403","block_type":"box","text":"director tenure particularly around the contributions of directors who have served for longer periods than typically","page_number":195,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"f8583b1a-063b-4675-ab24-887af3545702","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":195,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"de1d8256-2ad7-4cff-80a3-ab71b3fd79f7","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":195,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"51fae9f2-8c25-43ab-87d9-7df2b757269d","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":195,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"c737939f-2c75-4cdb-92bf-9f5a6f2100ea","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and expertise with continuity through the","page_number":195,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"c5daaf99-f56e-4d9f-baef-cc849334f03d","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":195,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"8aa413ed-2f03-418b-9e3e-dc82291a6f8f","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":195,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"218b6436-f1fd-4256-b476-31c9fb54bd2d","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":195,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"e5bc5bac-b1a4-4bff-b530-ec5699ae12ed","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":195,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"ea4804c7-bcc8-41d1-b3f3-c4a091d8e644","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":195,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"5d4027b5-5bee-4fa3-9716-1947e7793fcd","block_type":"box","text":"for their continued service is not evident.","page_number":195,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"2b6c2210-325f-4635-88f2-9ca0e266cc1e","block_type":"box","text":"Capacity","page_number":195,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"a48a6557-8a70-4f18-8d55-614aca450365","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":195,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"b8f82b23-4835-4f52-abc6-5114095c037a","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":195,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"ffd13514-cd5e-41ac-a612-c7f871adaace","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":195,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"8927b660-5c33-46a8-8288-cb75c1c8c9aa","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":195,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"a18da82b-2ce1-4e0a-8ccf-e348b263e6e8","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":195,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"d9be1e57-e7e0-4e90-8487-ed1cb19c3f4c","block_type":"box","text":"determinations across markets.","page_number":195,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"ac9771dd-5b1c-4eea-9a93-2fc0607b4465","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":195,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"4e759ba9-a77d-4b09-9039-1329494f64e7","block_type":"box","text":"their duties to the board and company.","page_number":195,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"9017661f-de55-4c9e-9cbc-9717ea461525","block_type":"box","text":"Director elections","page_number":195,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"9181b98f-2f42-4f36-abfe-ae7b86f6a1e6","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A classified board","page_number":195,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"3c8da586-501b-46b3-85c7-adf16734a6a0","block_type":"box","text":"structure","page_number":195,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"79f2f4fb-3aa1-469e-b6ab-3ca4f46c44af","block_type":"box","text":"8","page_number":195,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"cb7c1203-447e-4fbc-86ef-6bca30aeb2e5","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":195,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"2f57689f-5b05-45dd-bc25-0a78b3a3b094","block_type":"box","text":"basis of its business model (","page_number":195,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"3f215b0b-5bd3-4744-976e-4f62a6ede4cb","block_type":"box","text":"e.g.","page_number":195,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"c21aa98b-3e6a-4a82-ab8f-31bba9b88bba","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":195,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"4e039709-8ba3-44f7-b85a-18287df47af6","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in bundled","page_number":195,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"404ad26c-4f67-497e-ba5b-5068f58798fd","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":195,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"02e49c6c-ff4f-4c1c-a5cb-90e615e8e6e1","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not support the election of directors","page_number":195,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"58fcf4cd-0a79-40c4-9bcd-b3476a30de81","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":195,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"3d3ea49f-42ca-4b11-842a-b72647e12d80","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":195,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"f69f08d8-31ef-4d94-acc1-4694a76e1a99","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":195,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"c74b3a15-c184-4e1d-8e1a-629aa8efa3ae","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":195,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"f54d6130-201f-4e51-8e3d-08c5f5fb64c1","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":195,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"85db7354-8240-45bc-9c7b-868d1cb69a3f","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":195,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"94251c83-8893-46f8-81b1-ca024ee54444","block_type":"box","text":"part of a single slate if we have concerns about the profile or performance of an individual director.","page_number":195,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"e8aa630b-4bc1-4577-8f4d-1351a032684d","block_type":"box","text":"8","page_number":195,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"b62e83b7-1042-4cf0-8231-af7ec6c2b183","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":195,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"8d0a7d93-f82b-4e30-821d-486502eac0c1","block_type":"box","text":"directors stands for election in any one year.","page_number":195,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"13c704b8-a9e5-49e8-9a64-2afc113525cb","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"17a334a2-fe95-4c4a-8962-28c045dfbc25","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":195,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"21ba68c4-9084-4abf-9b7f-3aa4c22ab5d2","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":195,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8d996c88-7d9f-465e-baad-522dd62e20a5","block_type":"box","text":"Committees","page_number":196,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"dd20efe5-d3b9-489d-9cf1-a4c6f80ecef9","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":196,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"d9ccb579-a472-4cd5-80d9-ed0bff635ed6","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":196,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"ff897d88-39fc-4f82-878e-56e169394564","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":196,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"8efacac6-f306-459a-97a0-33ed9182128a","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":196,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"c1e03ec0-4fd1-4304-98a6-a9c1dba48b6e","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":196,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"b0fea7ba-c884-4bff-a5f2-b22b1ab51ed0","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":196,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"b523cf31-1782-46eb-9c13-bfcd1d219c28","block_type":"box","text":"the board discloses the structure, membership, proportion of independent directors, and responsibilities of each","page_number":196,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"93ec6e97-3976-403b-9403-53e1309f4e43","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":196,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"36033a7b-4931-4307-98a8-e2b4342cffdc","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"5fe50169-9ec2-49a3-a9a7-95f3e696411d","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management and","page_number":196,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"43fafe46-439e-45d0-8319-17bfd2c423a5","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":196,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"0be98703-82f4-4b47-a076-fd8387406bb5","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":196,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"45bc4e16-d079-4fff-8cc5-f4e4b1d8334e","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"5c7df7ca-1b34-428d-b668-d6eab2f20b93","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":196,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"78fa3ee3-fd00-4478-9d8e-ef030483c846","block_type":"box","text":"practices of the company, including the periodic review of board performance; responsibility for succession","page_number":196,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"d4c9bbf3-39f0-48ec-bcc1-ca2e2760232d","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":196,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"482c58f7-666d-4353-9819-9aa01cabc0cf","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":196,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"b32a09f7-128c-4aa4-b2d2-f2ddecbd7f55","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"ffb350a2-90f1-4379-9a9b-894d60a1defe","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":196,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"d64d3ac1-4ce0-4ef0-91d4-7a663212f35c","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":196,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"13deef62-169b-4bdf-a53d-32d012747482","block_type":"box","text":"firm-wide compensation policies.","page_number":196,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"e2ea68a7-de1a-424d-a31f-a43d13e5ade4","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":196,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"7d4f8c70-d877-4efe-9828-81f45b9f3977","block_type":"box","text":"to convey concerns about how a committee has undertaken its responsibilities. We may vote against the election of","page_number":196,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"71e1db30-81dd-4e4e-869b-8f1b2e70a471","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":196,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"b4bc2667-2505-43dc-b88d-a9c6c39fac8b","block_type":"box","text":"Board and director evaluation","page_number":196,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"10744722-a545-44a3-a1d3-2f14f4bf1237","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the board, the","page_number":196,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"cf2f176c-8598-4538-b159-65feb7de23b4","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be undertaken by an independent third","page_number":196,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"ebe2b0f1-edad-4d45-a1e1-39b37ad9419c","block_type":"box","text":"party able to bring objective perspectives to the board on governance and performance. We encourage companies to","page_number":196,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"8d12028c-bb5a-4fbc-b7e7-d3aa553ef19a","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":196,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"51df78c0-6f13-4644-a57b-9251abb01cfc","block_type":"box","text":"a result.","page_number":196,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"f04bca08-7e79-41e5-ae4f-531a85314d61","block_type":"box","text":"Access to independent advice","page_number":196,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"d42ee2af-c5c0-419d-b311-43bffbb1410e","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":196,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"62f108a7-adc8-47e3-8c03-34649dddab8c","block_type":"box","text":"access to independent advice. In certain circumstances, it may be helpful to boards to retain independent third","page_number":196,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"f711fc60-8fd2-4bac-91fa-23d54b9a3a47","block_type":"box","text":"parties to advise on critical matters. These might include new industry developments such as emergent and","page_number":196,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"87a41c5b-de3b-454e-9c5e-f1fbc569b547","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":196,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"a6d1c8ef-1ba7-45e5-bc6f-670d40285c9b","block_type":"box","text":"performance, or significant transactions. Board committees may similarly retain third parties to advise them on","page_number":196,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"87698871-c23b-4e37-9bac-83ca3d31c54a","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":196,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"9b85388a-e500-4786-a4f3-8624fec37e20","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":196,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"84297103-8a83-4ba1-b56b-339ab77685ec","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to recruit,","page_number":196,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"ca19973b-f5ad-49c5-b908-60f492940403","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":196,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"01a22f0f-4efc-4079-8956-f78915fdbf82","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":196,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"ca708b99-3bee-4148-8954-6abb3ab7e018","block_type":"box","text":"performance.","page_number":196,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"4b4ea4b5-f6e5-462a-a9f6-9453530baafc","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":196,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"5ac8b7cc-2cd1-4830-9c72-eebf4ff1b61a","block_type":"box","text":"performance against short-term metrics, incentives – most often share-based that reward performance against long","page_number":196,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"10b619ed-d4ba-40eb-9a2b-1bf52e4c8f28","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":196,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"41dd9b33-9e7b-41bf-b830-45102e71616c","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":196,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"d235d5b5-9437-491c-9b3e-258594b0fe55","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":196,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"414b0d83-6294-4a5b-938a-bdeb82a0ad61","block_type":"box","text":"recruit and motivate.","page_number":196,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"e45465e3-6274-49de-b9d1-4d595ded6fe8","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a company’s","page_number":196,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"67f68061-ae40-47a3-8f27-c9e4c7280148","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":196,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"464af559-666f-4f08-acdf-eaa19ecc8b1a","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":196,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"2acd9342-5d7c-42d6-b102-aab1a76e0c80","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":196,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"7ef75d2a-b3fb-4ae9-bd50-0fe170b479f3","block_type":"box","text":"arrangements include:","page_number":196,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"8ca569a0-339c-4189-80f7-b54704cf0b27","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"7d6b5960-f575-47be-a640-a57c582df329","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":196,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"ea7621f3-c216-484a-8664-89dbb8f1b321","block_type":"box","text":"the company’s size, sector and market.","page_number":196,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"501cea3e-8c5d-4151-a87e-2e2c7746064e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c45f21f7-ed8a-4f3e-b3f5-b9e0cbc57a06","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":196,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"ab1d64d4-3d40-4809-a9f3-90041943176d","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":196,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"05582aea-2cd4-4bc1-ae4c-d3e5b5e98d78","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"34418212-cb60-4a46-a7c3-6fc95f4690e4","block_type":"box","text":"Variable pay subject to performance metrics that are closely linked to the company’s short- and long-term","page_number":197,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"b42eddd4-57c4-4a28-9f69-6797042ab716","block_type":"box","text":"strategic objectives.","page_number":197,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"ab4ebf71-6420-4224-9b40-5c2186c47284","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"7c097fc3-71a5-4000-8b15-9451ccbccb4c","block_type":"box","text":"Long-term incentives that motivate sustained performance across a multi-year period.","page_number":197,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"ab4435e6-dcfa-4e5f-8296-4d6c9c281da9","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"4c4fae6c-584d-4128-a036-673fe765a4a4","block_type":"box","text":"A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and","page_number":197,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"566b052b-31d9-426e-97f2-ec3c9712c913","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":197,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"2006cb52-b030-4f8d-a29e-625d61bcb386","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"35fb35ee-20a8-447a-abf4-37ae3401bf0f","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":197,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"450258fc-9487-416a-8f2b-c762ad1a2f25","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"3918f432-7014-4361-9bed-8ec46cf55584","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":197,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"7054758f-c78c-486a-9379-81164610ec98","block_type":"box","text":"transparently.","page_number":197,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"c8759521-9215-492f-9292-83e8c570fea8","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"030bfa71-4c7f-4471-9039-96a955f41da0","block_type":"box","text":"A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":197,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"7d6348cd-1f7f-47aa-bf83-e571c4836e4b","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":197,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"787a93d3-b7e7-44cb-82a3-05a138da31cf","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"c77b592a-7e84-423b-8f61-5b451088e9a2","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":197,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"6dcc1913-7675-44c1-9c3b-d988ce649ae2","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"4f26a263-41cd-4afe-834c-61b32e325a57","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":197,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"42e99f08-21db-4e52-a3a1-d76c75b4fa94","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial reports, or executive","page_number":197,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"caf2cc33-d0a1-43b5-9093-e41bf7238c26","block_type":"box","text":"misconduct.","page_number":197,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"b57d7dc8-215a-4c7c-89c6-e2db660ec75b","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"13b908ab-ba80-4f74-a9c8-3831a6d9e3df","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":197,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"532c5e58-f5a6-495e-bb80-b7a627d1c767","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":197,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"c9d265f1-a755-4725-abb4-82d3a5318651","block_type":"box","text":"approve the compensation report where we do not see alignment between executive compensation arrangements","page_number":197,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"354e19af-5d7a-42c2-b205-2a0fe6a36d9d","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":197,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"3e3a07e3-73c6-457e-8daf-36575101c1d4","block_type":"box","text":"compensation misaligned with performance, we may vote against the election of the chair of the responsible","page_number":197,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"6c61198b-9141-41c7-be45-15eab18bc15a","block_type":"box","text":"committee, or the most senior independent director.","page_number":197,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"bd8598cc-2c99-470b-b207-b7c89b319909","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":197,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"902032d2-2315-40a7-9540-4567fb4da5f7","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":197,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"49f85a1e-28e1-453e-a62d-9fcbc60ff540","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":197,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"1c0d4833-104d-4441-be05-147b06346aab","block_type":"box","text":"do not support non-executive directors participating in performance-based incentive plans as doing so may create a","page_number":197,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"4c5a26ec-bb23-4061-8f7e-16be53364c87","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":197,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"9e906b68-7d0b-46ce-8205-50ae26bc2a23","block_type":"box","text":"CAPITAL STRUCTURE","page_number":197,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"190e7056-e512-4cd5-a54d-3908c8fd07d7","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":197,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"033e01bd-9c6d-4ceb-a6d2-0fdbf9fa59f5","block_type":"box","text":"appropriate capital allocation in support of long-term financial resilience.","page_number":197,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"ccd14db3-d0ba-4004-a253-0d7a0573a288","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":197,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"5de31d02-3be4-4169-80ef-7b45d74ae2ab","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":197,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"6b8856c2-21f3-456f-bd4b-ce82de690e93","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":197,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"d1abc140-d347-4f46-a76e-9416d61e1bff","block_type":"box","text":"company’s approach. We may also support a shareholder proposal seeking conversion of shares with differentiated","page_number":197,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"aa4aebeb-12cc-4f08-baba-85ee3621ec00","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":197,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"af9ba5ea-a563-413c-8be2-8bf84b8017c8","block_type":"box","text":"Share issuance","page_number":197,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"e4cad958-831c-4297-8154-94e187727fa8","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will generally","page_number":197,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"84d7421b-f6b8-4a19-901d-5caf4e5a596f","block_type":"box","text":"support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":197,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"8ae0ad17-2f7f-4561-9673-483adffc77ca","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":197,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"446ecc96-1540-4a87-a1cd-1e1c9c921665","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":197,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"1fc84fe6-40cb-4838-82f6-3f77a2d72002","block_type":"box","text":"market environment.","page_number":197,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"69a9189b-0645-4b18-b20a-7f02ebf74015","block_type":"box","text":"Share buybacks","page_number":197,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"3a42b9a0-6669-4c69-a464-bc4a0d43ee11","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":197,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"0fb0ca71-2b55-4967-93b5-53233e982b9c","block_type":"box","text":"management’s determination of the appropriate balance between investment that supports the long-term growth of","page_number":197,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"d0e52ab5-4214-49ae-9e92-5385614506cc","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":197,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"9b1f7146-8979-46b4-a283-fa8bc52f3a3b","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":197,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"77316701-ffa2-4a7a-a0af-8834e0bc3ba8","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":197,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"b55ada11-3027-4331-8393-36ade0d6d54b","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":197,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"6bdcd830-8318-4b6d-8391-79c36198f2b4","block_type":"box","text":"of the company and the market environment.","page_number":197,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"226e767e-9ea5-4907-a062-e7d9f09d52c0","block_type":"box","text":"Dividends","page_number":197,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"e5b015a9-f649-40b6-98ef-cba348a0f53a","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further clarification","page_number":197,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"f9af6b51-3c3c-4c7c-b6a7-63b2511b751b","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":197,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"761e9aa2-6dbb-4d9b-83f4-a36936d32bac","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8b02bd15-a7b4-4fcf-b600-6768a75dd79b","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":197,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"e17671d8-4ea9-4254-b150-2854bff10ad0","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3ee98833-9ced-40d4-b9a5-38277f303945","block_type":"box","text":"Differentiated voting rights","page_number":198,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"cb4479e1-d4d0-4426-906e-49e2ba05d871","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":198,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"1dcea3f7-2a15-49dd-9805-41ce313ac871","block_type":"box","text":"exposure. Certain companies, particularly those new to public markets, could make the case to adopt a","page_number":198,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"f9dfc0c9-6e3c-4069-803a-c004cb10a5fe","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":198,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"11a5f022-4f42-42d6-b5bb-b025f042f6bb","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":198,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"36b61701-fd06-4c23-941c-f5d12222fc4e","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":198,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"a767b3ff-5ffc-4925-b3d4-ba8279939c81","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own detailed","page_number":198,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"5afd129e-1a2f-466f-af71-e8bdef0d670c","block_type":"box","text":"analyses of proposals.","page_number":198,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"9bdba185-049b-4bde-9c11-641950e02bcd","block_type":"box","text":"Mergers and acquisitions","page_number":198,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"0fc27543-c7c7-4ae3-abf4-ba2af46b42bd","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":198,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"b2cc1cb3-7dbe-4afa-a82d-1e332943cd1e","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":198,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"aae0d751-385a-464b-8769-d5542d165d41","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":198,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"6f7edceb-a2da-4323-ac21-28c09838ab56","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":198,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"39563627-0700-4683-8c59-0bbc50402e77","block_type":"box","text":"an ad hoc transaction committee to undertake an independent assessment of a significant merger or acquisition, in","page_number":198,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"993593d0-41fe-44fc-b13b-a2086adc63f1","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":198,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"f22d5d2e-a882-42c5-baf7-e107fde13f7d","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":198,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"89b2ad6f-8425-42e7-b47c-eea69ba37505","block_type":"box","text":"Anti-takeover defenses","page_number":198,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"63898396-6c1c-4228-be67-b099f69ffbba","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":198,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"9307ce1b-7d50-49e3-b184-6dd67b502a7a","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":198,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"00c41312-d4a2-429d-b823-e038dcb5d9fc","block_type":"box","text":"shareholder value. By exception, a poison pill may be supported if its purpose is to delay a takeover that is","page_number":198,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"7f9feda2-7093-49df-9da9-3c93dc1e6c6d","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":198,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"9c3f471a-2b71-4f7f-adbb-3381c94f7b0e","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":198,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"32fd0948-9ad0-40b5-912b-2a015cbc9f81","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":198,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"93351bf7-0d5a-40e7-96b2-b72bc5d05c1f","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":198,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"7d328afe-b442-498b-857a-9a376ce730ac","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":198,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"763efee8-055b-402c-81b5-bda7b765998a","block_type":"box","text":"Shareholder activism","page_number":198,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"e379ecda-5934-4262-b083-4ce65df7298c","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":198,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"a7a43808-7e28-4135-91cb-3f2ada335d2f","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":198,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"6f9f7233-a409-4778-98fd-130d9155beab","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":198,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"5da24b19-d7b2-4522-af86-527048d15416","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":198,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"8df36fce-106d-4fde-9549-2fcaf18eff3a","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each party’s candidates. We evaluate","page_number":198,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"24bd3e14-af1a-40e8-80d0-f9738d805f9d","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":198,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"b6ea52cb-e574-4560-96db-50e6d81f6481","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":198,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"ca2e47f0-fefe-4512-8b3a-80114f79193e","block_type":"box","text":"the relevant portfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":198,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"1d9f6ac9-2768-4352-b732-3c737cd58536","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and expertise or have a poor track record of","page_number":198,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"a7526e96-8bd5-4b1c-a515-33d6351808da","block_type":"box","text":"protecting shareholders’ interests.","page_number":198,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"5535a9c6-559d-4e30-85d5-2108b47288a2","block_type":"box","text":"Significant shareholders and related party transactions","page_number":198,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"8b6db344-75c4-4029-be9e-69fa72d1d86e","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":198,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"dc4a4ca3-a6ca-473b-9409-d91554d0744e","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":198,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"17921d8b-899a-48ae-9a2d-148665f79f6e","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or companies","page_number":198,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"e3a84837-9d72-4f01-9713-e6d18865ceab","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":198,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"989badc2-fe1a-4ddd-9815-d2fab97cbc44","block_type":"box","text":"have been agreed with a non-related party. In our view, such transactions should be reviewed and approved by the","page_number":198,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"074aa9ae-ce2f-45b6-9d0d-06382bdb4b21","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":198,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"205bb0b2-06e7-4f7c-a830-de89fb1e864d","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":198,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"8971e89b-a4ee-4eea-a696-ecbe05fbe6f2","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":198,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"785502f1-6dbf-4e4d-8dd2-c0443b02fb30","block_type":"box","text":"implementation and financial performance, as well as to assess the quality of management and operations and","page_number":198,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"039c1e7c-89dd-438a-a3b3-52badd3d7ea9","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":198,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"61ecf833-b4ef-4517-9823-33dd06976d62","block_type":"box","text":"oversee corporate reporting and the policies and procedures underpinning the internal audit function and external","page_number":198,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"4b0c5f06-7424-40e9-bd39-a8e1990b439c","block_type":"box","text":"audit.","page_number":198,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"1997e658-7701-41c3-af92-f929891505a6","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other stakeholders,","page_number":198,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"0c69ecd4-1e78-4c26-b0f7-3afd5e0dcad9","block_type":"box","text":"on its financial performance and position. It should provide an accurate and balanced assessment of the risks and","page_number":198,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"8a459a11-1788-44a5-8c6e-0011bb2b05af","block_type":"box","text":"opportunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":198,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"502ff22b-49f2-4aee-a6b9-b16673def7c4","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e713963e-de5a-4a23-877c-d39976929fbc","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":198,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"69fb28f4-02f0-46bb-af51-e4b1c4cf9105","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"45274b0f-57f7-4ef2-80e5-22c467b7f8f8","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":199,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"badaeaa4-fd43-460a-b77c-ee492fe76482","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed reporting standards and any","page_number":199,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"4dc4f956-5ed5-4e55-a0f4-ccbbcb9384b9","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":199,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"40a32946-0c2e-46e9-9aaa-3f25f0cd9dc7","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":199,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"73a2d975-5029-4afb-891c-868b26f39fe4","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":199,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"bef7fd94-f174-4787-be89-fbadae824d37","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":199,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"ff61627a-993e-4a13-9ed0-d2fcf49592a9","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":199,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"e0f6264d-efcc-4135-b6e4-7e8cc50c807a","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":199,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"50a921fa-94b9-4f78-8b60-6db8790c3d05","block_type":"box","text":"important level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":199,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"e717634f-0510-4e7b-920d-37c31e9dfa7d","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":199,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"9eabd486-f0bb-4078-853d-7fc1ee43dc73","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":199,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"dcd48ec9-43a2-44a6-aae0-0c5037d210da","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":199,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"e8c83c56-712e-475c-a45a-35c677637577","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and opportunities. The International","page_number":199,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"998be309-2ebe-441d-9bef-dfc4a4bc855c","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its reporting standards,","page_number":199,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"eee23c6a-c037-4a58-9412-a8f4573d3eea","block_type":"box","text":"which may be helpful to companies in preparing such reports.","page_number":199,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"5e8bf166-4ab9-4e64-8551-6885a8aad718","block_type":"box","text":"9","page_number":199,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"4a96a76a-c7c9-4580-a08c-4d4ba34064f9","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":199,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"5ebd7b30-a3ea-454f-a294-fb0ab372c4d6","block_type":"box","text":"framework, and note that companies in certain jurisdictions are subject to mandatory reporting requirements under","page_number":199,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"3c9390f1-5e14-4a27-acb8-4e236326c665","block_type":"box","text":"standards specified by policy makers.","page_number":199,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"ed030d60-67ca-4085-ab6a-e86a01c8df39","block_type":"box","text":"10","page_number":199,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"81a1b680-73b9-4514-bbe5-7bac1361c1c8","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":199,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"27028470-c178-4fff-bce7-39886cea5655","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":199,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"ac0a8481-9d3e-4213-a9f7-bc0289365942","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":199,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"50a26723-df35-4640-8fa3-26fc53893a54","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":199,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"a9588eab-dbb7-4f59-9fb9-f52b4dc2f507","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":199,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"9c177884-0767-4561-84c5-6c16740a1f58","block_type":"box","text":"of corporate reporting. It is helpful when the audit report gives some insight into the scope and focus of the audit, as","page_number":199,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"fbd2c405-5e2f-4433-ab07-fa37d69a0273","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":199,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"921f501b-9fdf-49f8-b680-0b247e47c51d","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":199,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"2b80c322-df03-419b-b845-5f2e158a6753","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":199,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"2621f2b7-52ff-4f0e-8c8f-58912546c3fe","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":199,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"1468f67d-90d5-4513-918f-4e24b31fa954","block_type":"box","text":"remained independent.","page_number":199,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"892edc37-0b43-49a8-84d9-afbea0cbdb96","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or there are","page_number":199,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"023ca350-978a-4275-b540-532e3f901e71","block_type":"box","text":"material misstatements in financial reports. In markets where relevant, we may vote against a proposal to approve","page_number":199,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"c13a535e-a069-43ec-b315-2902dea05cec","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":199,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"0ecf534a-ee43-49f0-864d-ac7d3b3e1c0e","block_type":"box","text":"reporting or the audit. We may vote against proposals to appoint the auditor, ratify the audit report, or approve the","page_number":199,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"1ce7c084-475a-4667-8311-ffa91c25635b","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":199,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"b754fca1-49b4-4868-bfa2-a7f964f71766","block_type":"box","text":"misstatements in financial reports and the board has not established reasonable remediation plans.","page_number":199,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"2ff9fa19-0e4c-41f6-a391-7db25302abf0","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":199,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"44e15468-9827-46d1-b172-05c7a33a5e21","block_type":"box","text":"General shareholder meetings","page_number":199,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"a9d641af-24c3-410a-b838-0701065c0448","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":199,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"8dd62752-99db-4102-9bba-3a5131f18c18","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":199,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"7c49b429-5026-4d7f-a550-00e2dffc788d","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":199,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"34f16f29-bfe9-4128-9aa8-0623f3fd6e9b","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of participating in the","page_number":199,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"6c70be7a-967c-44e3-8ead-1bf6d1617630","block_type":"box","text":"meeting virtually which, whilst welcome, should not limit the rights of shareholders to participate as they would during","page_number":199,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"4bd8f5cf-9eb9-480f-a4da-0e9a23d031e2","block_type":"box","text":"an in-person meeting.","page_number":199,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"64b3dbd1-3403-484f-acc7-b01d7dfaa7e5","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":199,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"4d581317-1b03-4437-a644-089b84f68810","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":199,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"7cf6b788-012d-4e0a-bdb2-f1de520389dc","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":199,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"6e866220-320d-46d9-945f-07da2b17a159","block_type":"box","text":"participation.","page_number":199,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"b6e3fb8a-96c7-4dee-8132-07b49e3f7629","block_type":"box","text":"9","page_number":199,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"7b81aadc-31bb-4f45-8165-bb8f72bdf2a8","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":199,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"b927fed0-dfba-4a62-ab4f-38795f3d5276","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":199,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"20037509-7825-469b-a876-e2c28889a104","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":199,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"9e250021-838e-466e-86e2-b5014bc7cb20","block_type":"box","text":"Disclosures.”","page_number":199,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"d717b450-8457-420f-972a-0d06b530cd68","block_type":"box","text":"10","page_number":199,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"b69ac111-c05e-4faf-8c00-8c48e79ae593","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":199,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"96d4543a-339e-4a89-9f3d-8fd0e6972f3d","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyreporting\r\nandaditing/companreporting/corporatesstainabilitreportingen","page_number":199,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"4d1a00d3-fb03-4815-a474-b71d41f441e9","block_type":"box","text":"p/ p//p/p\r\nreporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.","page_number":199,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"36180850-f8da-4933-b210-08ddd516ab8f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"adc263e9-cb8a-4cbc-9c60-9ddff3039156","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":199,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"568c58d4-e938-4400-98a8-3ccfe921af3d","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a4fd4c98-aec6-47ec-bd25-7159789b7221","block_type":"box","text":"Bylaw amendments","page_number":200,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"2626b0c2-62d7-40ac-8684-91c9f1931c40","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally support","page_number":200,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"ca9ddae6-7343-40fd-8bcc-a0ada87bf00a","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":200,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"cb275383-6a34-459d-b0cb-4175305564ec","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":200,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"5a995522-7f90-4cae-911f-f654b2171ee0","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":200,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"64b5bd36-5491-4071-bba3-fd71d7a2f14c","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":200,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"69860424-ae4d-45cc-9d1d-bc8b93ff5c07","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":200,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"a29b58be-1a26-4dbe-8ef4-0b253eeb5047","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":200,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"65a971f4-f384-459f-93e3-4c38991f6efd","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":200,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"59945653-230f-420f-8e43-2904fdf326b4","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":200,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"54229868-5385-4f14-b426-c3482eba5ebd","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":200,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"16418bc8-63fe-4ea7-a097-78ec7f58e8e5","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":200,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"d48a1304-28b3-44c5-9530-37c38a8c7134","block_type":"box","text":"nomination process.","page_number":200,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"4cbd4ac8-f8d6-42f6-946f-9ff6e5c898b9","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability mechanisms.","page_number":200,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"3327e3cf-b55a-46be-a40b-46922ebe4317","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":200,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"243ded9a-65c5-4ce1-a413-7b60ccc26f9f","block_type":"box","text":"Change of domicile","page_number":200,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"0dcb5ef5-3af1-4ccb-afb0-b9daa610d3d0","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":200,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"f3d16596-357b-4ca4-93d7-7c1bf3ce23bf","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":200,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"77e0560b-f5e9-4dcd-b760-6e1ce58f95eb","block_type":"box","text":"immaterial.","page_number":200,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"5aea378f-ed0a-40ba-9b3e-9195d54dc043","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":200,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"187bc18f-a2dc-4b74-a508-a86c003ed6e8","block_type":"box","text":"with our clients’ financial interests.","page_number":200,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"1751ccdc-512f-4965-b0eb-dba2619ad838","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":200,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"573d4c4f-bf6f-4c5c-b2b8-26283f8261c1","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":200,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"6edaf474-821b-4706-80c4-faf38d97510a","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":200,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"2f922108-fbdd-44aa-87d2-74b95a0bc67a","block_type":"box","text":"on the suitability of a company for their investment strategy or portfolio.","page_number":200,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"97aecc14-7b5d-46e3-8c8b-5c300980537e","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":200,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"8b046b3a-887e-42cf-a90c-d4655d84fc08","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":200,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"009e610e-e37e-41b9-a096-aff452f44ff2","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":200,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"2f0ba82f-a7d9-4cc0-af71-a473a3498331","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals to the","page_number":200,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"26ca0406-8599-4de0-8a71-aad6fb59cafc","block_type":"box","text":"general shareholder meeting asking a company to take a particular course of action subject to the proposal being","page_number":200,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"9cbddbcb-82ea-4484-96d3-cfb8b5b1f653","block_type":"box","text":"supported by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":200,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"51d559c8-5a0d-44c7-887e-308298266f7c","block_type":"box","text":"relevant to a company’s business.","page_number":200,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"c47d8c85-e7b2-4c2d-b664-3855c790eaad","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":200,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"83add1eb-bc4c-4029-ad69-82e7f3e779bd","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":200,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"976568e2-f04c-431e-9369-2d0dd0854932","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial performance.","page_number":200,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"ef3b1685-489d-4b42-b098-8de02e5fbaaf","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or performance is to","page_number":200,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"c4fa6d55-6912-4ef1-8b55-f2e099d87341","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":200,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"033c059a-2f6c-4a9f-89d7-79cd25e5cee0","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may support a relevant","page_number":200,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"27900901-ecfd-45d4-9c55-c2568dcc0316","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not support","page_number":200,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"2721fb5f-ac00-4b6a-862b-0b360e9ec47a","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":200,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"91babadd-791e-4185-a60c-6989d9fb26ed","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":200,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"c76da083-90e3-46c1-acd9-4d5b44dcc4ed","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":200,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"b8e106c0-8738-43d2-bd95-a37289caf2bb","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":200,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"625597b1-4846-44d3-8497-387f6f706780","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":200,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"fb07034f-f5e5-456f-8458-cb7255dd522a","block_type":"box","text":"who authorize us to do so, on proposals put forth by others.","page_number":200,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"1d992e24-520e-4fb7-b514-f1933d4f1b6f","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":200,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"d2894ec4-3c7a-4004-9cdd-18c299d64aed","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":200,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"d2f77d82-d04a-4f1d-81ae-f01ea9c39fbe","block_type":"box","text":"in which they engage. When a corporation reports material financial risk related to policy and or regulatory changes,","page_number":200,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"282c6782-18c4-4333-8747-5162577c1735","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":200,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"c04c7cde-8210-4124-ba96-a09fd42df1fe","block_type":"box","text":"companies engage in corporate political activities and ensure that their participation is consistent with their public","page_number":200,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"515e5203-2dc7-4538-a482-6c3ee4c98613","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":200,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"15a1f75b-f622-461c-9f73-12f3dc65dda4","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":200,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"2ace9de7-814d-4d38-a5c8-6cc61d407cc7","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e47d5cbf-803f-4b63-8de1-3c9abae3313e","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":200,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"23f21b8d-5428-4ead-ad7a-80f462f45596","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fa314c4a-9025-4b99-8c20-11cbf49b7ca8","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":201,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"f979de59-bc0a-4ca1-8e58-86d038c03d69","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":201,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"9f172cb0-8c21-45b0-ba3c-5f2b70c437b8","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":201,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"e88fc755-f895-4c43-b901-7c1de9de0f0a","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":201,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"a6d7b4cc-e147-4ec2-a433-b45aa7014921","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":201,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"d21fabf6-a6b4-4cf0-a444-2b63aea5bd60","block_type":"box","text":"undertaken by trade associations on behalf of members.","page_number":201,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"fb9ec8cd-3398-4dac-9f51-7dba71f1f850","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":201,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"d0c3a9ec-3c91-4874-b1ed-d9b2f04fa2c0","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":201,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"8a0109b2-852e-400f-956a-c39f7c55eecc","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"d28a592f-3249-4d41-923c-92ae42f8e617","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":201,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"8acf0cf3-e68c-47ec-9ffe-b4ecdf424fce","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7e224486-1293-4bce-8cdf-a19fc06e952e","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":202,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"6e88d824-9642-4e66-8bf1-e1b12808b424","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their business","page_number":202,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"a8521bb6-d043-40ab-bd59-d02bb088b77b","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":202,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"645f322e-4049-4576-9a16-9e3c1bfb0e07","block_type":"box","text":"11","page_number":202,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"b9dcae83-abb6-423f-a1b3-5a525450a38f","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":202,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"4aae00f8-2cd9-4d7b-80a5-7d8dcd2d4196","block_type":"box","text":"its financial performance, are generally operational considerations embedded into day-to-day management systems.","page_number":202,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"b935785f-cc33-4d4d-91ba-f0e5f9d2cd33","block_type":"box","text":"Certain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":202,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"3159b696-e8ea-495b-94ef-e765f8239ac7","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":202,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"e658f404-e8b2-480b-93de-92a1edded8e1","block_type":"box","text":"regulatory requirements.","page_number":202,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"d4688994-88bd-4231-9ae0-814781b799b9","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":202,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"e90658e6-d01f-4190-80e6-d80f432a0dc5","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":202,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"a8ef4fed-c275-4d5e-a0fe-db9a4c6b08ad","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":202,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"9ad3991c-706a-4951-b77c-7c0df27140fb","block_type":"box","text":"integrating material sustainability-related risks and opportunities into their business decision-making and practices.","page_number":202,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"8f77adc7-b3b4-441a-a3bf-e28532494612","block_type":"box","text":"Doing so helps us undertake a more holistic assessment of a company’s potential financial performance and the","page_number":202,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"48d62591-1e47-46de-85b2-2236dc597442","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":202,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"5defb16b-6861-4448-8286-994b63a761e0","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about how a","page_number":202,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"191bb807-d9f5-47a2-9dc7-8deddeb04f4a","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":202,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"bd310bbd-02df-43ac-b525-67da01785978","block_type":"box","text":"returns.","page_number":202,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"7a6061e1-d569-4d80-82a7-dece24111f7d","block_type":"box","text":"KEY STAKEHOLDERS","page_number":202,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"a17d9031-da0f-4da8-a553-1a8c60e0bfb5","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various parties on","page_number":202,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"1cbb604b-e80f-43b2-aa2f-b7af5e9593fd","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":202,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"cb9f3c0a-2eb2-4f7a-b036-7150b05bf502","block_type":"box","text":"what is material to their business and long-term financial performance. For many companies, key stakeholders","page_number":202,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"0e82d17c-435d-4954-8d43-86dd3f146238","block_type":"box","text":"include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":202,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"adc3d39f-9648-4104-ba6b-6b18f3bf7c3e","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":202,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"6ff7ac8f-765f-410d-bcae-c95237b44966","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":202,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"b50bc303-1c96-4fb9-b150-c8182752799b","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":202,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"b8a8562d-d9b4-4a6a-a070-34fc601cb99d","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":202,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"690334a3-5bdd-4b92-a0d6-7d0ab50800f1","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":202,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"0151cf1b-cc37-44de-9d70-52cc5f950140","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":202,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"e529a048-4349-4410-87ad-d8dd5a6475ca","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":202,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"71d75fd9-606f-447f-841c-2bde1f0b9d45","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":202,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"93bdfcc1-3adb-476d-abda-dce7d0577c67","block_type":"box","text":"i.e.","page_number":202,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"5e906e44-f051-41c5-b7b9-e4022fa43275","block_type":"box","text":", one in which global","page_number":202,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"c70fe974-45d7-47e9-9cdc-fad3305524b6","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":202,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"fc3c7b8f-e0f8-4997-bfa9-7a5550cacec0","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":202,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"d4f1f1e0-b1a3-4772-ba39-5576242edb93","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":202,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"b4d61df4-045f-44bc-b141-ba31ae322d76","block_type":"box","text":"client.","page_number":202,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"f29cf1eb-0d7a-4c9c-a10b-f2b79fd19ecd","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":202,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"11b81623-20fe-47b4-b79a-3b1616d16e95","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":202,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"4d70739a-247d-47b1-9486-f639f95e0a49","block_type":"box","text":"the low carbon transition, based on reported and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":202,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"6d28747f-eb0c-479c-8263-1987ed33da76","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":202,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"68d85cc6-2f07-4625-a71f-59e52e53ca98","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":202,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"3c77ab23-dd4f-44f7-ab97-3075f60a29ed","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":202,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"4f3c9cde-705f-4058-aee4-4e030209fb3a","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":202,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"b51c872b-ad19-44ff-b024-c3632c4e87d1","block_type":"box","text":"1 and 2 emissions.","page_number":202,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"c3e6ad68-7859-4ba1-b423-b9aeb032700d","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":202,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"35b1d4e6-f1a4-4313-b4a6-b9dc1845b021","block_type":"box","text":"support for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":202,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"1d73ed57-a557-4d05-83c1-1b06507ba216","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":202,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"b9874a48-2280-49ba-909c-494ca9f17aa6","block_type":"box","text":"specific guidelines. We may recommend supporting shareholder proposals seeking information relevant to a","page_number":202,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"11fee54f-1624-4cd1-9461-fe24a7f38140","block_type":"box","text":"11","page_number":202,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"7b9f429d-3db6-4074-b13e-1a60eb2fadcb","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":202,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"900a94e3-3c49-4acd-9952-83f95089a8db","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":202,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"0e85cd46-80a7-4d95-93e2-0b8eaf45ca31","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":202,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"f0e52a58-752a-4540-b022-3a4b204c732b","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":202,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"2abb5e5d-9646-4d00-b632-55e7a8ac1eb1","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":202,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"40ef20a3-71dc-4336-bf4d-3d9b290cdb6e","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses.","page_number":202,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"7348c48e-1b57-49f8-887b-17d061d5327d","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":202,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"0a6c71fd-ed0a-4f8c-9747-7f4f52ee6f1f","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":202,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"e3e3db13-94d8-4b6d-9722-7f8fb97036a3","block_type":"box","text":"sound governance framework.","page_number":202,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"5d62f3be-482d-47bd-93d3-5beb14097a89","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ad0aea06-16cf-4597-8ddb-23516d3f08bc","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":202,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"a81b6567-a5df-4968-834e-626996aedb32","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b844a7fd-a4d7-4f38-9381-16238e51077c","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":203,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"be400722-6ff0-4161-8906-216a882f6e31","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend support for shareholder proposals that","page_number":203,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"8d5c2b58-bda9-4095-9986-9fd58cefd379","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":203,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"c6d823fe-804f-4c4a-85e8-2bb875317971","block_type":"box","text":"the BAIS benchmark approach, the active portfolio managers are ultimately responsible for voting consistent with","page_number":203,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"ee6e2ee1-e4b3-4dc4-a2ed-4bb1ddcffffa","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":203,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"b62ee43e-8b8c-4444-a55b-3bd7125b3fd4","block_type":"box","text":"climate risk and the energy transition is undertaken in line with BAIS’ benchmark guidelines.","page_number":203,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"750fd926-cfe6-4c76-97be-9bb0175202d1","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b305545a-9203-4417-8311-4a3f843c647e","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"c60b2553-ddbc-4794-bd67-d1ab7eacde03","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1200f385-b319-40ee-a2cb-2f93bfa8fe60","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":204,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"9182dff7-2c80-4e8a-91b4-400931c3ea28","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":204,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"6a738d2f-a5df-4a27-842f-5cdafff73592","block_type":"box","text":"Oversight","page_number":204,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"25a11d72-4859-488d-aa68-ec7c46f940a8","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":204,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"5890f1e9-07de-433e-a692-5642875b3c88","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":204,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"6df8e9e7-6fb5-4119-9d46-40f4d9eb68bb","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":204,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"2b5539d8-06a9-4283-bf62-e81de286229e","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":204,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"3af3e8b8-1567-4fd1-9d08-10ef6bafaa6f","block_type":"box","text":"in our engagement and voting activities, reporting lines, and oversight.","page_number":204,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"340d1d50-7395-493a-b685-5b2edd0d8cba","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":204,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"6e3956d9-2f92-425b-a56e-29465ed2e5d6","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":204,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"4648ed27-8164-4b94-b753-3e948ababe9a","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":204,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"6f37abf1-55fe-4dd4-beb1-feb9b5de08ed","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":204,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"40d06dbd-8741-409b-abb9-303e24012b95","block_type":"box","text":"relevant active equity investors.","page_number":204,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"9a29547a-4a0f-4666-a0c3-c1c3202159a3","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":204,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"8e127e74-ad82-43e2-978c-44d8481372ce","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":204,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"50632625-aef7-481e-98ff-1657c078d7ab","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and participates in industry discussions to","page_number":204,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"0c62f017-d596-4d9a-bfa7-c4fe549c4c38","block_type":"box","text":"contribute to and keep abreast of important developments in the corporate governance field. BAIS may use third","page_number":204,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"79303e9b-2db2-4fd7-a9ba-444099a40d76","block_type":"box","text":"parties for certain of the foregoing activities and performs oversight of those third parties (see “Use and oversight of","page_number":204,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"f955e196-ae9c-4517-ae6a-279dbeb9ef9b","block_type":"box","text":"third-party vote services providers” below).","page_number":204,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"4d2ad93d-b0fc-4088-9d7e-92156da67672","block_type":"box","text":"Voting guidelines and vote execution","page_number":204,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"ee2ac5fb-16c3-4a65-b07c-76b3faa79c14","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":204,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"01a76cdc-f3a4-4da4-aadf-f518b91eb0b9","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":204,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"17b5a21e-fcdb-4018-b707-b936852fd9ac","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":204,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"e373dc1d-91ed-48e3-bd6f-907b959a745b","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":204,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"aece0448-f090-4964-98ca-e4e9dc53c1c4","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":204,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"a425065e-8efe-4fb8-9035-cf9b6c3359d2","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":204,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"339bea30-bf1f-4425-8bf9-d00ee8b7bbe9","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":204,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"11e3a797-ebd6-4116-b7da-5b969fa88376","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":204,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"6c96ed4a-524c-46a1-821b-d3f704129b5e","block_type":"box","text":"although portfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":204,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"f6c5fda3-6f61-444e-8f02-57ac34837976","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":204,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"11d2a3e0-3ec5-45d5-af40-af66c61777c1","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":204,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"9300aec0-a9d4-44a4-a1c6-6f761b96e15c","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":204,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"7cacca68-022e-4053-958c-03917e5e5ce6","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":204,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"f352abe5-58be-4141-9ca6-7213d4a9843a","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":204,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"5eeccd64-1800-4e61-9e44-527f66a9c7e7","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":204,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"bf2c423c-f2da-4781-b2d3-b00afccb8825","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":204,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"6533b3ce-2a1b-430e-8956-51303a9b1630","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":204,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"ffa5d228-be0d-48a6-851e-095c523de218","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":204,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"e39795a9-fa29-426c-9f2d-d7658789113c","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":204,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"50408efa-898d-49a3-9e1e-b050b3d633c5","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":204,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"e16e218a-0900-4abc-bdd8-354f95342c7b","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":204,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"4a6b65e5-1570-45e2-b0bb-15b708c01086","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":204,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"18d9a471-6ebe-4bf4-a9ea-b82d537303f3","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":204,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"bf2b23bb-cd9d-4f51-90c7-9c4c429d52e5","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":204,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"799682bf-a67c-4783-a96c-ca792d7069e7","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":204,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"0c2fee4e-5528-45ba-a921-b745812aa62c","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine that it is","page_number":204,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"c3757aaa-7026-4c1d-abd3-df41d4923140","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":204,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"61dd74f1-7624-4856-a55f-59b1bab11775","block_type":"box","text":"(including but not limited to opportunity costs associated with share-blocking constraints) associated with exercising","page_number":204,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"75451e0d-52ac-474e-b87a-f60c36f5432d","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":204,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"d6a7e44c-8337-4828-8f4e-d0b539699cab","block_type":"box","text":"Voting Choice","page_number":204,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"cc4ba854-f7f4-40ac-b44c-ed3c53810f91","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":204,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"a9c22f8b-71a0-428e-bbde-f7f1cafe516b","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":204,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"06d25868-f0f6-4ae3-b3ec-8cb98a9a376d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"9e240928-4023-49c0-bd8b-83d81a8db153","block_type":"box","text":"Global Engagement and Voting Guidelines | 17","page_number":204,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"2e79f04f-4eb5-46ad-9ea4-33847e8c9213","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":204,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f0e1f296-66e9-4a3e-bd4a-cbbb37e373f3","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":205,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"1e23e974-025c-4f11-b249-4fd95666771b","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":205,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"e0a1765e-7347-49ad-a2e7-fbc595028c0e","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":205,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"69df7cd4-de0f-4376-95dd-bec7bfa96e2e","block_type":"box","text":"strategies.","page_number":205,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"681d6969-89d5-4d80-9729-978842c1a964","block_type":"box","text":"12","page_number":205,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"0d4fd746-5135-42bb-bc93-71da0c07e13b","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":205,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"ce5ca634-c9c4-4f48-9cfe-25f23e289efd","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":205,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"6f959d90-f561-4aa8-af82-9b850fa63805","block_type":"box","text":"with a third-party policy, or have elected to vote shares in accordance with their own policy. 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Reliance upon this information is","page_number":207,"box":{"x":68,"y":822,"width":823,"height":11}},{"id":"6d066b76-7616-4d98-8e13-277992a249fd","block_type":"box","text":"at the sole discretion of the reader.","page_number":207,"box":{"x":69,"y":837,"width":250,"height":9}},{"id":"b4d567ad-48e3-4e01-8a14-750d7aa5f1a5","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":207,"box":{"x":69,"y":868,"width":196,"height":10}},{"id":"4d3a4c5b-4b53-418d-889c-1dc8b707ae15","block_type":"box","text":"©","page_number":207,"box":{"x":68,"y":898,"width":6,"height":4}},{"id":"34bc4199-9eed-4b14-aa2f-238cee2d7aa4","block_type":"box","text":"2025 BlackRock, Inc. All rights reserved. BLACKROCK is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":207,"box":{"x":75,"y":898,"width":809,"height":11}},{"id":"921ce87d-a640-491c-9492-1553c358af37","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":207,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"ca65dd01-993b-461b-9b54-e9bbc294b0dd","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"d0cb298c-d60a-4878-ae65-9029f73e6633","block_type":"box","text":"Global Engagement and Voting Guidelines | 20","page_number":207,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"27700ad2-90a9-4e1f-904c-a32f92217e63","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":207,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9792db53-e104-464a-b0dc-d5089eaacb46","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":208,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"7ed6f576-74de-4924-974a-2b7aebbda150","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund 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Funds","page_number":208,"box":{"x":205,"y":173,"width":589,"height":11}},{"id":"9c37e2c1-9ddb-440a-a3cc-8d3633ca8f31","block_type":"box","text":"□","page_number":208,"box":{"x":405,"y":196,"width":14,"height":11}},{"id":"26232036-4406-414b-b8bb-2ebb314940d5","block_type":"box","text":"Money Market Funds","page_number":208,"box":{"x":426,"y":196,"width":147,"height":11}},{"id":"67f59f75-6aed-438f-bfef-6356b5935bbb","block_type":"box","text":"□","page_number":208,"box":{"x":416,"y":218,"width":14,"height":12}},{"id":"8568d7da-c4f4-406f-b8d7-1da5a10583ba","block_type":"box","text":"Closed-End Funds","page_number":208,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"078a7a36-6a41-4a24-9503-c7757d2eefdd","block_type":"box","text":"□","page_number":208,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"96b4499c-7b93-4beb-a406-cee91dc15a85","block_type":"box","text":"Other","page_number":208,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"fa618cc9-ff2a-4346-aa49-45725b6bd771","block_type":"box","text":"Objective and Scope","page_number":208,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"65354df5-2211-44b5-8825-35de1a2d7124","block_type":"box","text":"Set forth below is the Index Equity Fund Proxy Voting Policy.","page_number":208,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"8474c1b2-8a08-44a3-ab20-df546f00bc48","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":208,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"a1e5ac92-f374-4b4b-8c35-c2bb7d5065d7","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":208,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"d0ce68c1-4e2f-4f45-99b0-d89e553caead","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":208,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"abaa1d5e-2953-4c6a-9207-aac95db215d2","block_type":"box","text":"voting proxies relating to portfolio securities of the Funds, and have determined that it is in the best interests of","page_number":208,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"cc53c17d-38c7-408a-8761-f1c596e29ee8","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":208,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"9cc17db2-95c2-4483-a79c-de7e7930200c","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":208,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"bd0f0dd1-c2b4-4a70-82dd-edfc45ee5db2","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":208,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"ac56646c-ba5f-4e67-9809-a83766ff69f2","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":208,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"ad665353-f6de-4612-b2d7-dcb085245aa1","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":208,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"42f86547-4169-4bff-ad4e-c4ec1435b755","block_type":"box","text":"the iShares Core S&P 500 ETF. 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The Guidelines set forth BlackRock’s approach to recalling securities on loan in","page_number":208,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"7d932a39-de14-4042-a9dc-3ab6249adb65","block_type":"box","text":"connection with proxy voting.","page_number":208,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"3897e175-9d79-4e58-9454-efcd42c831bd","block_type":"box","text":"Reports to the Board","page_number":208,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"6b2c2d58-281a-4a7b-a4b4-246f8e180caf","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":208,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"b952387f-f782-435a-b738-a4740452473e","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":212,"box":{"x":69,"y":292,"width":351,"height":11}},{"id":"37c48062-a326-4d2f-a662-1d26a8a3a3aa","block_type":"box","text":"about our stewardship efforts on their behalf through a range of","page_number":212,"box":{"x":426,"y":292,"width":457,"height":11}},{"id":"539ec83b-0286-48bf-8b69-658fe27576d3","block_type":"box","text":"publications on our website and direct client communications.","page_number":212,"box":{"x":102,"y":307,"width":439,"height":11}},{"id":"05df7bd2-18c7-47b8-a1a2-34252c291854","block_type":"box","text":"This document provides an overarching explanation of the principles that guide our approach to engaging and","page_number":212,"box":{"x":101,"y":329,"width":778,"height":12}},{"id":"9f0efa2f-3c5c-4e0f-9c37-165fd10156f1","block_type":"box","text":"voting on corporate governance matters and other material risks and opportunities under BIS’ Benchmark Policies.","page_number":212,"box":{"x":68,"y":345,"width":817,"height":11}},{"id":"f149b316-15a8-4b32-ada4-e5213d1e81f5","block_type":"box","text":"The BIS Benchmark Policies – which are comprised of the BIS Global Principles, regional voting guidelines, and","page_number":212,"box":{"x":68,"y":360,"width":790,"height":11}},{"id":"80620dff-01b4-492e-9c58-df73ac134bb9","block_type":"box","text":"Engagement Priorities – apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":212,"box":{"x":70,"y":375,"width":829,"height":11}},{"id":"3256aa23-6e90-44d0-88bc-60b0cf1de184","block_type":"box","text":"based approach, and are focused solely on advancing clients’ long-term financial interests.","page_number":212,"box":{"x":69,"y":390,"width":648,"height":11}},{"id":"d0b4b72b-e318-4750-9ef5-2c2aacbccfa1","block_type":"box","text":"2","page_number":212,"box":{"x":718,"y":390,"width":4,"height":5}},{"id":"5935bc38-3514-4c7b-b71d-e6c3b4adf25d","block_type":"box","text":"PHILOSOPHY ON INVESTMENT STEWARDSHIP","page_number":212,"box":{"x":321,"y":420,"width":337,"height":9}},{"id":"9c0eb083-68c1-4ed2-b0fb-7416e372c216","block_type":"box","text":"Sound governance is critical to a company’s ability to create long-term financial value. 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Our regional voting guidelines explain how the BIS Global","page_number":213,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"7f09bd17-28ba-47c0-9852-f36886f442fa","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":213,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"b38067fb-6c3d-4a51-9382-7fb043b56b6b","block_type":"box","text":"4","page_number":213,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"3719e776-718a-49d2-a6b8-eb38e57ef88b","block_type":"box","text":"3","page_number":213,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"a55b160a-0b09-463a-8365-c2f40cbc14ab","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":213,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"f2056fdc-721b-47ca-85f9-dc993922fbb3","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":213,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"2df71622-ed18-4eeb-b5ee-23375a309bc7","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":213,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"c08bbbf2-8700-408b-b0e7-1cb504e1c699","block_type":"box","text":"4","page_number":213,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"c23da70f-6e50-44d6-a9e1-43c5922e613b","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":213,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"0ba52d5a-2ff1-4e71-a07f-f0b1ca990a9e","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":213,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"c4ed7310-27df-4bf0-8fb0-bebbace3b1ed","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":213,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"25bb1349-03c7-490f-92f0-a29953af858b","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":213,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"8d506dbe-4faf-4a36-b2c2-e8a6b00aa0a9","block_type":"box","text":"guidelines.","page_number":213,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"8f677207-cc79-49a9-8ac6-f40d9b0e2aae","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"87db2d0f-adb3-4d7f-aa3c-a4a76579a896","block_type":"box","text":"Global Principles | 4","page_number":213,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"291b7fda-19d6-4162-9da7-adc0f55212c9","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":213,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5d779912-e5ca-4759-8abc-f3b8afafe605","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":214,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"6a2aa633-aa7d-44a5-8da9-cd2388354978","block_type":"box","text":"Oversight role of the board","page_number":214,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"918efc57-27a7-4b91-ab16-d051d654b1d5","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":214,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"79646688-1939-4472-9614-b131e237b9b0","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":214,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"5b6f0f0c-f274-45ac-8224-19a4cdcdf976","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":214,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"5b3c56f5-b53f-4fb4-a02e-726079b15f9b","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most important management decisions that support","page_number":214,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"74a64ef4-59e0-45de-8973-a4f8cffdc419","block_type":"box","text":"long-term financial performance.","page_number":214,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"9684af32-daeb-454c-9a61-9a024e216cb2","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors. We","page_number":214,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"932f97b2-6458-40f9-9564-9a88f89c9b15","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":214,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"1f85e617-6b09-43da-97c9-4546f109cef4","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":214,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"2028e5de-f07d-4be0-91f4-26cba5776333","block_type":"box","text":"the business environment in which a company is operating.","page_number":214,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"4a9534be-1a7e-4acf-a8a1-c9f7aa40b0bb","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":214,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"28319e82-4271-4963-9383-68cef0931085","block_type":"box","text":"governance mechanisms that supports its oversight of the company’s strategy and operations, consistent with the","page_number":214,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"537e28fd-9f3f-4355-9e0c-8f7b361a0309","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":214,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"a8ff44cf-32e8-4b14-b171-294383b37a00","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":214,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"48141656-a262-4ffa-99a3-9c65950d0470","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":214,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"f8831164-e972-433e-880b-86ff1ac713c1","block_type":"box","text":"mitigating such risks.","page_number":214,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"ee5e4fc7-4d77-4e44-878c-82ce71e48f5f","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":214,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"fcb4a9f5-7490-4cc9-bc57-81f333bdb71b","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":214,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"3029d693-6256-4338-bd84-f89dbd9caebe","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":214,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"641e3e3c-cf3f-4071-9602-e39aa8beea2c","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to articulate the effectiveness of these","page_number":214,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"f5c12ad2-5cb4-4b08-86d8-5aadaf813920","block_type":"box","text":"mechanisms in overseeing the management of business risks and opportunities and the fulfillment of the company’s","page_number":214,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"4e08781f-f6c6-4f02-8ec8-a3babf40942f","block_type":"box","text":"strategy.","page_number":214,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"194ffd66-96b6-45bc-88d8-9454e751d873","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":214,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"9081d72e-747e-4d51-b45d-34f1c291c1c8","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not supporting the election of directors who, in our","page_number":214,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"f6182f7e-b9e4-4a34-8216-3306e4d40385","block_type":"box","text":"assessment, have particular responsibility for the issues.","page_number":214,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"8b5bb1b5-9ef5-42d8-9ac4-c91deaca8229","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":214,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"719a6d35-2564-4bf5-8e26-ef9e5a1cdca3","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":214,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"c044563a-4fcd-4f6c-9fea-2f9cbb13d9cc","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":214,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"506f2f5c-6ab5-47fd-bf1c-8b2874e83f85","block_type":"box","text":"performance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":214,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"b483afff-89e2-41a2-a069-1963d9bce918","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":214,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"cd0a1ce7-d6ad-468d-b4f5-6580a613469b","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":214,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"4fb6b279-f1d3-4fe4-a716-498087bc5694","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":214,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"13ae246a-501b-4da8-b15a-1a933fbff0c6","block_type":"box","text":"Regular accountability through director elections","page_number":214,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"fe464963-3ae1-4256-be90-854a660abf42","block_type":"box","text":"The election of directors to the board is a right of shareholders and an important signal of support for, or","page_number":214,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"dfa1aa85-56d0-4622-a480-7120d8a3c04b","block_type":"box","text":"concern about, the performance of the board in overseeing and advising management. To ensure accountability for","page_number":214,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"7dbf3bbd-ebce-4631-8ff0-03bfa5f0534d","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":214,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"20489c24-ada0-493b-a217-b3161737b921","block_type":"box","text":"5","page_number":214,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"d34e6363-b2d5-4db9-92ee-952cafc1c43d","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support for, or concerns about, board members’","page_number":214,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"532e072d-f992-4ab3-b3de-4fc85c8e925c","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":214,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"ffbc9c0a-0ca2-4803-955e-d390a9e7b835","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":214,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"1833dc70-8663-4056-8a58-e11592b89f81","block_type":"box","text":"with a proportion of directors being put forward for election at each shareholder meeting.","page_number":214,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"eb063d3c-2d78-4446-8123-28dccf93b4d9","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":214,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"3a6d710d-406e-4a30-856f-9b630614230d","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way to reflect","page_number":214,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"a25c7be7-dccd-4ea6-8bc1-6c82fe3ff151","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":214,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"aea6e758-5c23-4847-94cb-a82a886a9ed7","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while supporting both continuity and","page_number":214,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"842921d1-30a9-4cc7-8c11-29b7af4e0942","block_type":"box","text":"5","page_number":214,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"c4b68599-26a9-4353-b639-52b1b3918ae5","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":214,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"a2e18a66-f72c-427f-8d31-711ae6497d6a","block_type":"box","text":"market regulation or voluntary best practice.","page_number":214,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"a40fba6a-ae06-4ed1-a3b3-a4026420a3c8","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f2ca1aa1-3498-4ab1-bba1-cd6bbde72523","block_type":"box","text":"Global Principles | 5","page_number":214,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"1f3ebbd1-8a15-45aa-8890-315085561f36","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":214,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a779c563-aa5e-4426-a296-29c1e79ad0a1","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":215,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"1e6391d8-048e-41b2-ae99-939c341c7707","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":215,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"3a0b350f-c4de-4076-b63d-bb8bc483f462","block_type":"box","text":"recently.","page_number":215,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"71dd3799-3f5b-4fe8-bbd5-fb25f0d8d2ab","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":215,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"9147d437-f5f0-42b6-83d7-3174d577a1e8","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":215,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"955709fa-b238-4707-9567-0f27f4597bb3","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":215,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"2c7fd1d3-5c74-4a51-ab0a-ffe4f6da5fa0","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":215,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"55d2d5b4-302a-4b14-8041-dde173131318","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":215,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"927d6f24-167c-4778-979a-a7d7a5b4da7e","block_type":"box","text":"Director independence","page_number":215,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"90c21497-985e-4e51-804d-ab1d0e1ad6fb","block_type":"box","text":"Director independence — from management, significant shareholders, or other related parties — is a central","page_number":215,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"496935e0-01d4-4828-9fd1-da6057f544c3","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":215,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"205ba3f5-d2c4-4457-83bc-c8e8c3897856","block_type":"box","text":"6","page_number":215,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"c22a3119-9809-4033-9e5c-e014751b1d57","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":215,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"ba14ec47-ba6d-470b-85ea-77861f35eaf4","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":215,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"702efc29-fd18-4476-823d-b6fdc697a245","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":215,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"7324b30f-977a-49ef-b1e2-73d0ec730091","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":215,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"673598b2-ecc5-446a-9b72-bd64c007f363","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":215,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"75679b08-7d7c-4ee0-a3d8-b2a5642a9bc8","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"f764ac9c-b103-40d3-9455-8102d266e0bc","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":215,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"f23a4398-3511-467e-854d-c94345510c21","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"61e42689-bf83-47fa-ab85-e414bc5c7b41","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":215,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"bfc87bcf-7cac-4ed1-867c-4aa625e544af","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"089c6452-0e55-4756-b05e-623e15b7376d","block_type":"box","text":"Interlocking directorates","page_number":215,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"ae22f910-1d69-414f-897f-705730ad9207","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"8bfc5381-427b-4c7c-975e-36a05a52ed59","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":215,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"a761e850-0794-47e2-9b47-523cc3d7dac8","block_type":"box","text":"materially interfere with a director’s ability to act in the best interests of the company and shareholders","page_number":215,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"264c47df-2e17-4f00-8020-0fa695f5eefd","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":215,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"ccf38791-b4c2-4caf-ac29-f8b69927fa86","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":215,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"11da0ba1-b0d4-4383-b4b9-dce24d8f9851","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to support independent board","page_number":215,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"4632f754-c00a-4111-ab19-dedc24541b9a","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":215,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"bcb626d2-beec-4111-9af9-8e7c92b3a669","block_type":"box","text":"is provided to the board, and encouraging independent director participation in board deliberations. We appreciate","page_number":215,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"cd225057-0816-4d98-b8c5-6ccf8d8b292e","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":215,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"5dbcbed4-0ce3-4a13-ad41-c58a0c0aece6","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":215,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"5ece316b-58a5-4d37-b75f-c3ad4b26f88d","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":215,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"7a92baed-9cc6-44a5-9bae-a695ce86a914","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":215,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"6bec899c-e678-4c58-a994-4607c9f73546","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":215,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"7e101e2c-8811-42b1-bd1a-2431481d6e4a","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":215,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"b7742b6e-c389-49fb-af7b-42c327a70e18","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":215,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"9b71c88c-3132-40b8-98ad-84376e7ce7f8","block_type":"box","text":"particularly one involving a related party, or to investigate a significant adverse event.","page_number":215,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"371f0851-3937-472a-8796-20a2f195c997","block_type":"box","text":"Sufficient capacity","page_number":215,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"b6ae213a-e2fd-4693-aba7-f72c9ba2fb0f","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":215,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"c0aa8a78-e678-45ca-94c6-82f10ccea851","block_type":"box","text":"appropriate amount of time to board and committee matters. It is important that directors have the capacity to meet","page_number":215,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"5175e660-b3f4-4870-a08d-cce6611dc876","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":215,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"61ed9722-251f-487a-8b81-f6e7284483d1","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":215,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"4602f5f0-8de2-4255-844e-ddf2cfd511d6","block_type":"box","text":"Board composition","page_number":215,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"16a3ef67-2f81-4dfa-8b0e-7104f13c29dd","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":215,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"58aaa414-f990-4568-9355-27cd077156dc","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":215,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"9326c207-2f29-4107-94a8-89d88b0adfb0","block_type":"box","text":"companies explain how their approach to board composition supports the company’s governance practices.","page_number":215,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"285da7ec-d4ca-4525-ad71-2b0be437f7b4","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":215,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"e74d20da-8671-475f-b4bb-ce5e71e2e175","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":215,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"bd002cee-6194-465f-841c-842ce5065325","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and expertise of the","page_number":215,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"d8f3f08a-b7e6-4b56-ae5e-b732ee4cd64d","block_type":"box","text":"board, as well as the particular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":215,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"3c02afe0-7ff6-4369-92f1-2febaca6c223","block_type":"box","text":"6","page_number":215,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"10b00839-bf16-4690-ac7b-40204bf43380","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":215,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"edd7a0ea-a6db-47b7-850d-346e63704698","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":215,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"790b1c73-8bf6-4d9e-8b30-e3600201d5ac","block_type":"box","text":"BlackRock Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"79870c87-394d-47db-b61a-9c0b0a8cfd26","block_type":"box","text":"Global Principles | 6","page_number":215,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"1386dc41-356b-474c-ae9d-f377939ae252","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":215,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f67d0f28-fa09-4d12-8f45-6f40eb34a815","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":216,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"88f75204-0e22-4bc9-848b-8b9097dd963f","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":216,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"3082f5bb-3c27-4a9e-a109-e4fbb3006165","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":216,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"363abe2d-fb5e-4681-8ca9-08d85c3b7fe5","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":216,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"4441400a-876c-46d1-a161-2892a0ab2992","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":216,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"fc86d891-f2b1-43b5-89ea-d2678302928b","block_type":"box","text":"may discuss with companies, particularly if there is a risk their board composition may be misaligned.","page_number":216,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"9373c15d-f468-47a4-9a71-63afdbcfe8d9","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":216,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"4ce5d511-bbdb-4bfc-9549-98936467303d","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate portrayal of a","page_number":216,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"65eb4f5f-1868-4808-a9d7-f29357f0c6c8","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":216,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"d966df23-abe3-4c68-bbbc-12efd11c827a","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":216,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"088bc484-1034-4dc6-8254-74737740c561","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":216,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"608c8fcb-7565-496e-9a5c-dd9164e36876","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important role in a","page_number":216,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"8d98c8e7-1018-4d04-820a-b8ca81c601fd","block_type":"box","text":"company’s financial reporting system by providing independent oversight of the accounts, material financial, and,","page_number":216,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"3d6dfd44-cecf-4ace-a29d-5100a1c34c6f","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":216,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"0ec069ce-926c-4198-a452-40b788286a3a","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":216,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"38b717c5-9e5c-4f6e-ac10-32b98fc9f6ab","block_type":"box","text":"systems.","page_number":216,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"ef7e9a74-3cc7-4e06-af83-a8dba5f182bc","block_type":"box","text":"7","page_number":216,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"bed04aba-a2ab-47b8-b814-c4250916404b","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":216,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"a379d5b8-a09a-4165-870d-9d36d20975f8","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders.","page_number":216,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"d3590103-0b92-442e-8684-9e44ec8d7f51","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":216,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"84010866-3f24-4637-8267-370372a20fad","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":216,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"bfb237e0-fd19-446d-b515-e6bf36991976","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":216,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"937286b8-9a23-4e35-b287-6dacd7d3dd43","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":216,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"9e826a21-6e32-4768-a066-dca33488d113","block_type":"box","text":"expertise to monitor and oversee the audit process and related activities.","page_number":216,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"7b737e86-7085-4cf4-bd0c-bd089ded86df","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant financial","page_number":216,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"d2c4b217-e0ac-4ea5-afa1-d62e5ca84667","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":216,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"59ca1508-463f-4948-adfd-600e6487def1","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":216,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"3051b042-6ac4-4e1d-983c-db69944f7aca","block_type":"box","text":"or internal audit function.","page_number":216,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"cebc7415-47ac-402a-822a-d244c57dd4f1","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":216,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"b9c5d28c-0a81-4e1a-8e46-6fd2ed539f33","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is important that auditors are,","page_number":216,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"9e0af438-d8ba-4796-a136-2520dc402360","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":216,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"f9fddcd7-6920-4bf9-a9e7-99835e24ea5c","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":216,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"f08c8a44-28a5-4564-bfe0-c38ab23ca4cc","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":216,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"f6cd057a-cf64-4260-b88e-20bcb733633c","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":216,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"a4d31130-cf6e-4b43-b706-5904a8a16168","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":216,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"9d48d6fc-3990-4f71-9cda-ae2dae40a565","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":216,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"edcfcb90-3bf0-4c90-a3aa-2f607009fd86","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":216,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"ae9ecc78-c5ca-4043-ae24-67d035346beb","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":216,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"00623bc4-193f-45e0-87bd-270bca541ede","block_type":"box","text":"risk.","page_number":216,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"ad5704e9-2a3f-4ba6-ac6d-945a070f379b","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":216,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"e8d9d7e8-0c20-42ec-bfba-90619dcb3c67","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":216,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"c87634c1-e1ec-4d6e-8c64-9fe35da5383e","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":216,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"807ec48e-5c18-41be-91f3-b0673e7c9425","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":216,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"0b62146d-0e22-4534-bdcd-358a6e9f99b7","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":216,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"fb02440e-1c2a-4fcb-ad4b-5e0b9a38f9d4","block_type":"box","text":"differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce the adoption of","page_number":216,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"b8531165-cf1d-414b-a524-43ef2b8c1e7f","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":216,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"83e96516-3924-44d6-a400-052e28ce834e","block_type":"box","text":"7","page_number":216,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"0639e6a1-e100-4b6c-968e-ac10a8b55b89","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":216,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"49513327-335c-4930-973a-9a799b6f9c8c","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":216,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"55240ae3-c252-4ea3-b723-a201d7256321","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":216,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"12449aaf-705b-4da1-bfe2-ec4573294b67","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":216,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"31dc92da-4b99-42d2-bfe6-61837d360a59","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":216,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"24c21f1f-bdc2-4a90-b431-477422d69508","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a3acf5ed-e4a0-4fc1-8b72-96c68517f1f2","block_type":"box","text":"Global Principles | 7","page_number":216,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"35e8e66b-c245-4df1-a9af-65f0f67616e3","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":216,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1bd85a30-f79e-441e-a825-2a7b346a43af","block_type":"box","text":"However, we recognize that in certain markets, at least for a period of time, companies may have a valid reason","page_number":217,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"79dfa3fb-51f8-4892-b3f9-772bd73697a2","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":217,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"b2331c96-410c-4534-8408-5ffe7b02f793","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":217,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"5fc12287-7bf7-4655-afe4-0c812bceba9d","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":217,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"914c099a-fbfc-4f40-a5c0-a2969871c04d","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the opportunity to affirm the current","page_number":217,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"2516474f-934f-4f19-aacb-2ebdc0de186b","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":217,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"e688c5f9-be73-4d63-acd8-ebaeea6b64e8","block_type":"box","text":"minimizing costs to shareholders.","page_number":217,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"54dd3487-a072-41f3-983a-533e9f69f901","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":217,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"987bb981-bd79-4d26-b5ee-312658f264d4","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":217,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"d39db18e-13b1-42b4-b8b1-06b4ad454730","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous support of the","page_number":217,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"72ab7440-8220-47ce-b7d6-4cac9aa8d56f","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":217,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"d35b359d-a1f4-42ec-bfab-5b3d90be432c","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":217,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"6c062f8d-4a7a-4323-8b32-7471aac2323b","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":217,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"f0a24f5c-513f-4a89-a74f-e378e79a89c5","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related parties, the recommendation to","page_number":217,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"8538225b-98ff-48a0-912e-f2b131b8bb51","block_type":"box","text":"support should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":217,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"11881a58-451c-419d-afb7-4d33e580beb5","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":217,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"a8152e7c-baa3-4d02-9c0c-02cf222efa38","block_type":"box","text":"a separate vote of the non-conflicted parties.","page_number":217,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"74190fdf-0af2-4478-a0c4-94b7fa62e5be","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":217,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"d0568efa-958f-44b7-9cdf-9ea8d8afb310","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":217,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"5ad33945-2b1c-4c6d-93ef-774e94d7e117","block_type":"box","text":"ability to sell their shares are contrary to basic property rights. Such mechanisms can serve to protect and entrench","page_number":217,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"d47e7d2b-7eb9-4bca-802c-e3d4355d90a2","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":217,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"262a5333-b422-42a2-b290-509673535fee","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":217,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"7c31005a-13c6-4cfd-8369-a846a80d3191","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":217,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"f1c7233c-763a-469d-afc4-05d484fb404b","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":217,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"94d77ddf-502b-493f-a022-55fefa085fda","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value creation. A","page_number":217,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"90573026-be38-4115-b5a8-a53c60aab94c","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":217,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"8a6898c7-2520-47e6-afa8-56b948d791cd","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":217,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"96203eb6-b452-45e1-952d-223e8d42bb0d","block_type":"box","text":"ownership.","page_number":217,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"88020130-8891-4c62-aaf5-0f8abbf58869","block_type":"box","text":"8","page_number":217,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"7caef8d0-04c9-4e7e-b0e4-c35dad93f9dc","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support sustained","page_number":217,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"b65d8b74-b859-4018-a667-255c359361f8","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when performance targets incorporate","page_number":217,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"61256e33-9716-40fd-9574-0ec27c35bb43","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":217,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"9a9f2d07-227d-46b8-b9a6-c04d98e1f81f","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":217,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"2d90ab18-f40b-4b5c-bc2f-9744f4f5fe9a","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":217,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"e7fbecf8-63ef-48f8-b60a-92d029675bd9","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":217,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"8984de83-a903-4d2c-a7d6-85b753197c18","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":217,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"c34bfabe-961c-4c38-9b3f-1a96b9a1bbbf","block_type":"box","text":"results over a period of years.","page_number":217,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"c8206938-5a56-4649-ba00-777cd20913b3","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":217,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"63db9759-29e0-4c2a-9d83-8927d1cb9a48","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":217,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"e80a3f21-85f8-48e1-9e0f-3bf79f7a30d4","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":217,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"2391a2b9-2c5c-4982-9ba5-e05ad961cadb","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":217,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"bb539786-465f-4ad5-b2c5-bba23eb5021a","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":217,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"0bd0c820-5a82-465f-90c2-733e8013562e","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":217,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"cb0c6ec2-4c3c-475f-8132-ebfd22975f91","block_type":"box","text":"executive compensation strategies.","page_number":217,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"de40a8a4-8555-4fc4-8275-fb02f4803d3f","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance. Where","page_number":217,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"d1595e67-762f-4f36-ae44-9fd008b8e081","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":217,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"823438c3-3330-49a4-953d-0b42527a1b18","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":217,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"54cdd004-f28a-48b7-8a1c-64ae699ba961","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":217,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"b63c0bd2-0712-40ce-bf91-1ffd0f2eeef2","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":217,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"f3553ec2-82c2-4863-8999-3c35d8ea2887","block_type":"box","text":"performance rather than solely base increases in total compensation on peer benchmarking.","page_number":217,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"fde19bc3-0692-4f93-bb0d-795f21d00094","block_type":"box","text":"8","page_number":217,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"be2f7dde-f26b-4fb1-b66a-429469474f44","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":217,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"6048ea8f-007e-4ade-a227-46e7fa755e0d","block_type":"box","text":"different markets.","page_number":217,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"cea9cf5e-0425-4295-8497-e303fe4d723e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"cac19c4d-c217-49bc-87c0-0dfd15ef309f","block_type":"box","text":"Global Principles | 8","page_number":217,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"d665c984-1992-4003-bd3a-c839d17d8020","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":217,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"42906176-deb8-4662-b362-389956146b2b","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":218,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"2b75af9b-b2a2-45f2-826b-60670b39efcb","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":218,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"07196032-c9f2-4729-9231-cb529b3ed13d","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":218,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"585bb6bc-66f1-4462-8a51-63f5fc10ebc9","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":218,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"568a0908-455e-47a5-98e5-323b477ff8bb","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":218,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"a4fed14c-7f44-4da0-9d71-a9cb775ddb21","block_type":"box","text":"effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":218,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"ec7f28e4-3339-4112-bc61-236995e23912","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":218,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"90a2f88f-eab1-4ac0-9b33-64c5bc40d6eb","block_type":"box","text":"whom they are charged with overseeing.","page_number":218,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"7bb5c209-6f80-42bf-b513-230934f86d98","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":218,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"400af1d2-c868-4f84-836b-34445be47cb4","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":218,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"f8899504-d546-49b2-a617-b11e5cde65f4","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":218,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"6edef926-f3f5-4a05-8bc2-7aecb6b7e3a5","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance, BIS may not","page_number":218,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"63e6e796-0213-4fac-8f88-37507ccf7a99","block_type":"box","text":"support management’s proposals to approve compensation, where they are on the agenda. We may also not support","page_number":218,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"5bc17795-9d53-46b8-a4c3-be44b90f4750","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":218,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"811ed31d-5f7e-4a60-8753-b386550948e3","block_type":"box","text":"structures.","page_number":218,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"f07fe880-abbc-48a2-b7ab-dc6daf2693f9","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":218,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"d57b7e28-9102-4634-8a9f-6b562bb5ba33","block_type":"box","text":"Corporate form","page_number":218,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"1cb62096-0867-4c43-a906-abcef2d63e72","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":218,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"837388ce-80f2-4b72-8455-93fd238c00da","block_type":"box","text":"the company’s purpose and business model.","page_number":218,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"a267c102-c125-4624-a9d2-2d14e1c6f001","block_type":"box","text":"9","page_number":218,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"dc453a85-8546-4947-8a5f-6e75c3665808","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":218,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"c6be5c17-ec64-4a5c-9dc3-60eb9036fb69","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":218,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"d2912473-277f-4281-b866-5aa3ac9bdb15","block_type":"box","text":"applicable law. We appreciate when supporting documentation from companies or shareholders proposing to alter the","page_number":218,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"be86644b-c95c-431a-b1a4-74e112ebdb17","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":218,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"7bb8a042-4f2f-4d76-9aaa-ff6a0b296442","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally support","page_number":218,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"cb812b31-7ee0-4d88-a125-bf3d339bdc33","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":218,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"b44b5d6b-f621-485c-833b-15fca809ee8d","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":218,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"0738e471-e572-4090-a452-bbc9b53d621a","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":218,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"563a1ed7-1c1c-4823-82b1-433ea3a7ad6d","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":218,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"83402a99-0885-45cd-a6f3-46125f6b5609","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":218,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"3eb8e90a-6ad8-4d2e-a078-906b3fb15e52","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":218,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"89efe28c-3105-4211-97e1-b71ebde0c1fe","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":218,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"4d7d55a5-5978-4252-8fa9-caccb206aa04","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":218,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"c089965d-0a1a-4e23-bf02-991ae998a408","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":218,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"f16d8724-dd95-4cdc-8b71-0d2504d697ac","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial performance. BIS","page_number":218,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"956ad462-cee2-407d-838b-47b0b4159a5c","block_type":"box","text":"may support shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":218,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"a8a5de15-a626-43b4-a5fc-1191e4e508ab","block_type":"box","text":"clients, better understand the material risks and opportunities companies face and how they are managing them,","page_number":218,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"ae4c9027-8f8e-43f1-ac21-a1395a48a837","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":218,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"4281215e-7746-41fe-9379-187d90e4c4c4","block_type":"box","text":"between the specific request formally made in the proposal, the supporting documentation, and the proponents’","page_number":218,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"d3746916-a81d-46f3-8851-856deeae82c8","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":218,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"d4905b87-a6a3-455b-8ef0-c327f5574900","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":218,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"70327969-87a8-43a4-8636-66e7ff4e55d0","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":218,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"64f5048e-2295-4b50-964b-564521a10be9","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":218,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"56ee92fc-602d-4613-8a51-eb6cfb7c1ee0","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":218,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"6f6bf394-778a-444d-b76f-a987e66f0c6f","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":218,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"5bcee5a4-e9e6-4541-97a3-db408daed6b9","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":218,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"1e462c18-61ea-4635-821f-419245cc7a2b","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":218,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"09cdb6d7-aa4d-46cd-8c80-ea54eeed53fe","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":218,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"46720937-769f-48ed-9fa0-6c4cb148c868","block_type":"box","text":"requests. Further, the proponent’s supporting statement may refer to topics that are not directly related to the","page_number":218,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"8d3f9ba7-c701-42e5-9208-6ead520df073","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":218,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"100fe267-07b5-4275-aa26-2c11ff74e5cf","block_type":"box","text":"the proponent. Therefore, when we vote in support of a proposal, we are not necessarily endorsing every element of","page_number":218,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"995ed5ee-0a00-4f57-a75c-3e780d51d500","block_type":"box","text":"9","page_number":218,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"9c687d7a-eb1d-45f7-99e3-3cffa1468411","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":218,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"27fc3cbf-eca5-4f02-804b-71d1a4b66ffd","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"0c011071-90cf-4720-9cad-2be26e4b256d","block_type":"box","text":"Global Principles | 9","page_number":218,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"ccdb71d6-f5ab-4a63-b2b5-f1c7c1cc1338","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ba742642-f4ac-48b0-b1fd-4eac55df0f03","block_type":"box","text":"the proposal or the reasoning, objectives, or supporting statement of the proponent. We may support a proposal for","page_number":219,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"a332186b-f4ad-42f9-80d3-8ae9cf0268e2","block_type":"box","text":"different reasons than those put forth by the proponent, when we believe that overall it may advance our clients’","page_number":219,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"4b18a824-2c4e-48de-a339-1261ff9a70fe","block_type":"box","text":"long-term financial interests.","page_number":219,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"fff4be7b-ca6d-4466-a8d9-fbce67e4bbe3","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that place","page_number":219,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"2ebfdc34-839b-43c5-8e18-43d065a17ce5","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":219,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"e80e4065-33b9-42fa-beeb-d7d6702633bf","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":219,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"23919ec8-5a2e-4891-88fa-419a2c191c4d","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":219,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"bdfb610e-8850-4991-a2bf-b253ee03e716","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":219,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"36fd87d7-300e-41dd-b84a-4fa70c4e5259","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks and","page_number":219,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"6ca7ab5e-0f40-46ff-b8d1-55da5dc1d365","block_type":"box","text":"opportunities, is an important component of having an effective governance framework that supports durable, long","page_number":219,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"6859ec98-4421-408d-9781-ea9490765f35","block_type":"box","text":"term financial value creation.","page_number":219,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"e031e377-1a66-455a-a424-a26799d45c6c","block_type":"box","text":"10","page_number":219,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"3a511f78-e5e2-4d76-a34f-ad01c9faa141","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":219,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"d4cc055d-2531-4160-a8a0-709267c323b4","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and opportunities. We find it helpful","page_number":219,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"f1e8dcd9-364d-4a65-bd9e-35d3d63ef7c3","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":219,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"49a99082-fb16-4828-a8ef-47a9dd873e31","block_type":"box","text":"sustainability-related risks and opportunities into their strategy, risk management, and metrics and targets, including","page_number":219,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"a64ba842-1e42-432e-a1a8-e1acf0cb79b5","block_type":"box","text":"industry-specific metrics.","page_number":219,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"31750aec-d0b9-44ec-8c8d-a9f04c9d463d","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions. The","page_number":219,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"88092ce6-609f-4882-9f6c-a00f62bc9e9e","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":219,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"7ee2db05-73b0-41ac-a767-3f8dae003b04","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":219,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"3918daec-86e6-4a9a-b435-e7f882f504a2","block_type":"box","text":"11","page_number":219,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"6472ef22-e302-4b35-8be9-2cbef9d08378","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":219,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"e34c7286-b3a4-4515-95fd-6b2336d78ee2","block_type":"box","text":"companies should use, and recognize that companies may report using different standards, some of which may be","page_number":219,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"b2e4ece1-2da5-4eea-a2f7-225eec015584","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":219,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"a9f71d44-4c85-4a38-a65f-09f6b88372ad","block_type":"box","text":"specific.","page_number":219,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"997ea1d4-6c7e-4205-8663-f0663ab2f2cb","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not prescribe timelines","page_number":219,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"33c5702d-4f59-4481-8677-2016b30a090b","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":219,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"609c844d-9550-4e93-a201-7fdc9ad5f757","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":219,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"53135636-39d9-4bd8-8e1e-eb547bc411e6","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":219,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"43bffbc6-cb8d-4987-812b-4ff32e26c2ea","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":219,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"3ea69864-ba70-4e28-89a4-c205674f1c1e","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":219,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"f8405f0d-13bd-46f9-a5d9-e04e02cee1f8","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":219,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"f81380b9-b90a-4766-b8f9-faac65e62ee5","block_type":"box","text":"which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors","page_number":219,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"4b00d06e-0cdd-4828-9023-6ab660254ddf","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":219,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"32671b41-aac3-4f4c-94be-23654e92d311","block_type":"box","text":"10","page_number":219,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"5ecb40df-ded6-48e2-83ba-4f755e712edb","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":219,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"c496e582-9d40-40a4-b9bc-e198813c3572","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. 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The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":219,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"4b4734c6-06bd-4751-803b-574034a2a205","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":219,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"94d09660-86c6-42a8-a79a-5b6b2f943ef6","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":219,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"94e67ae0-6d30-4c84-b60c-2e06ec62c898","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":219,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"dd3aa271-0b4b-4e65-9047-fda84f2ee14c","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":219,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"ec6da7ce-b3b4-40df-8005-f9a9dbae8b31","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"b05fb835-75e6-4a48-abe2-3534d0d12fac","block_type":"box","text":"Global Principles | 10","page_number":219,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"ff252b26-9179-4b2c-bfb8-80ff26409999","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fcb0ee91-9b8d-4002-8dff-2f447897af73","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":220,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"01997361-ffc5-4b65-91ae-c736bf79f8a1","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":220,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"e5d83bdb-a523-4327-8122-c74d7b760e9a","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":220,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"08ee9d90-cc4b-4daa-ad34-35f6c9ab3c69","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial performance through","page_number":220,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"517eb9d9-2753-427d-9ede-8d96c6077fce","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":220,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"25752a00-0069-4631-a661-ed3b934735b3","block_type":"box","text":"12, 13","page_number":220,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"ab756399-7b74-4892-9549-8da75186a883","block_type":"box","text":"From company disclosures and","page_number":220,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"9fdcdaea-a7aa-482f-acf9-edcbb9d8697e","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":220,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"6cf1fc26-839c-4766-b57e-fa0e110e7c7d","block_type":"box","text":"opportunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":220,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"16e8849e-b27f-4eaf-af94-24dea61c9b55","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate large","page_number":220,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"700ffc09-e40f-4ed3-8f2f-51bd835f99a0","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":220,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"b6cc5d8d-ea2f-4ccc-9acb-276a17cd226c","block_type":"box","text":"viewed as best practice in the market.","page_number":220,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"f864be56-245c-42b5-b1bf-6b51fc190872","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":220,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"6394549e-f017-4367-a218-f8c84ed189dd","block_type":"box","text":"climate-related risks and opportunities, and informing investment decisions. Such disclosures also provide investors","page_number":220,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"73e34b30-1fc1-4574-b7c8-6464b7ffef9c","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":220,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"e928fcb8-db2a-452b-9338-14485584a14b","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":220,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"34bdfd01-7395-47a4-b05c-d3b97b0d9c7e","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-, medium- and","page_number":220,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"018e3bc8-0a23-4802-a3dc-fb2ca9bf21b6","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":220,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"d0f636b6-aa63-4a9e-bf00-e6d17d2da2cc","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":220,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"125ac5d8-9128-41a3-b8f7-bc5d6c342c3e","block_type":"box","text":"interests of their investors.","page_number":220,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"b9149bf1-ce44-4bb1-b9ac-688f07d4460e","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this stage,","page_number":220,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"39f107d2-4794-4652-b8cd-deaa552c181a","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncertainty,","page_number":220,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"71bcf1f3-3417-47fa-bda4-4fbe73ec4a53","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":220,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"8b06c5a6-f2c6-4ff2-9b11-86bd386a67dc","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":220,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"7e27a6ee-1a02-4cd0-b25d-b8660f1737f1","block_type":"box","text":"good-faith basis as methodology develops.","page_number":220,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"6e4219aa-6277-4776-8453-3ca65567523e","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or supply","page_number":220,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"56402133-9a2f-4652-aa78-5cd15c3aec41","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and opportunities may affect their ability to","page_number":220,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"2c3b20e4-cb5c-4f98-b7c8-1ce18ee4e181","block_type":"box","text":"generate long-term financial returns.","page_number":220,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"caacd02f-0786-4932-a908-c957772bf352","block_type":"box","text":"14","page_number":220,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"0517a83b-be5e-4a62-976c-5bac09e6045f","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":220,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"39ea3c6c-df77-430b-b312-fd3fdb0dd809","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":220,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"021b65e9-ffdf-475a-9749-27508b73b61c","block_type":"box","text":"15","page_number":220,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"b040f715-ec1a-4ca4-9fe3-1a51e7600953","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":220,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"12487b41-1ea0-49be-ba8a-7cb7e920c912","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":220,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"33549e77-1925-4fc6-b682-fb8e170fae84","block_type":"box","text":"performance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":220,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"475ec1fc-7221-46c0-bd29-72c68f789890","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":220,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"731846e8-0cea-443c-b810-00e23b95d1b3","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":220,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"4169e75d-34a1-40e5-a3ce-7e3350f5d6bf","block_type":"box","text":"more likely to deliver durable, long-term financial performance. By contrast, we have found that poor relationships","page_number":220,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"79d88923-b70b-477f-929f-1da07b9c1417","block_type":"box","text":"12","page_number":220,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"3066c5e5-21c5-4309-991b-54d2767ef5f4","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":220,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"1d0833a7-408b-482d-bbb7-7304405dc903","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":220,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"01882613-56f9-4b46-9346-c4a8001deea2","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":220,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"5b966895-655b-4403-a18e-ab01baac4e6a","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":220,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"5f563de7-92cd-448f-8d77-a108147c952d","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":220,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"5eba3d9f-2d66-4bc0-b503-ff5a9f6f618a","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":220,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"86953882-c482-423a-82a8-4448f77ab7e6","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":220,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"e19201cd-5bd5-4a05-88cf-fb5a709414b2","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":220,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"318f1e86-a6db-4904-b201-8623d8505bc2","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":220,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"5ba4f143-d6da-446a-b4a5-3a1bfb79d00b","block_type":"box","text":"13","page_number":220,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"6c59dcd9-5e9b-4f73-b955-74192d3c07ca","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":220,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"2fd6391e-b8f3-4aa8-a193-431788798705","block_type":"box","text":"2025.","page_number":220,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"c96abacf-98fe-4585-9ef0-aaf6fde2bb98","block_type":"box","text":"14","page_number":220,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"1170efa4-b0c9-4bcb-8d8d-4c72d8fb7fad","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":220,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"223251f9-8607-46d7-928c-53496be8baee","block_type":"box","text":"2025.","page_number":220,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"df78ae9d-12c0-4c0a-b5a8-ef662a2276d7","block_type":"box","text":"15","page_number":220,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"cbcc4f37-1be9-45e0-b183-72756e5d6bbe","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":220,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"830af979-63dd-46f8-a204-d2cc22c29323","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":220,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"0c2b995e-bde6-4169-a712-618f37575949","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":220,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"701478ff-357e-49d3-9342-4a694e40139a","block_type":"box","text":"some companies may report using different standards, which may be required by regulation, or one of a number of","page_number":220,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"8b465928-ee8d-40d9-a0ae-c002092d50da","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":220,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"839543b4-86a1-4d1e-a90a-2136ee75fc6e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e6a380d4-d415-402f-b719-c855923be67c","block_type":"box","text":"Global Principles | 11","page_number":220,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"6c3caabc-df8b-484c-8aa9-7ebe27bb4df6","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"76c33001-4ad9-4d74-9b55-476d99a07973","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":221,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"07410a60-bbf2-4b62-9f12-c18fc6293d31","block_type":"box","text":"This is particularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":221,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"f678adb0-a5be-4351-b4d6-909d433c363f","block_type":"box","text":"16","page_number":221,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"0a90e523-5af9-4664-a0eb-d0e3f844826f","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":221,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"ea8dd453-260b-4fd3-b5e6-d2a29eabfb89","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":221,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"2dff4e9a-3a40-4753-b7eb-5f3e76957ef0","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":221,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"004c5924-618b-4350-94d0-5f1c24fbeec5","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":221,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"8f90d3f3-bbd6-4560-9f31-0597fc5746a0","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":221,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"6f22fa2a-60e7-4d37-b2c5-c1f4315a7e99","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":221,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"f7db745a-df00-422a-8f87-18ea51e532e8","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":221,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"ec2acd92-dc8e-4719-b78c-94b883a5e6af","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":221,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"82d240ee-d121-412f-918b-ceba94890a9f","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":221,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"4a9c947d-8eed-455a-9540-529bc22cb79d","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":221,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"63c29956-c4a6-4a9a-a4fe-1c1679549275","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":221,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"495f3cbb-91a6-4e08-85ab-93979f0a24b1","block_type":"box","text":"impacts.","page_number":221,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"491ac279-86e9-4a7e-9c71-8a3b67eebc9c","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":221,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"74e17f7f-b0b5-4448-b0ac-1b6b1672be5d","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or supporting a business relevant","page_number":221,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"5cdf5a2b-2007-47d6-b116-d51b32ae6c42","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":221,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"bbb500a0-4038-42b3-8a04-0f70801c1ad5","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":221,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"a7bbf980-4a7c-4d78-a10e-f8f17d574346","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on behalf of","page_number":221,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"6e09a4df-8fab-404b-8fea-b0875eab0779","block_type":"box","text":"clients at the global and regional level.","page_number":221,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"dffaa344-11f3-48c8-b800-a71c51050ab6","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":221,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"ca6d4796-6c00-4fda-b04b-b4e7eea27a04","block_type":"box","text":"supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":221,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"6cf84a20-f624-449b-8903-74696da43576","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":221,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"05d0324e-f316-4684-9a6e-163a482131ae","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic reports regarding the votes cast by","page_number":221,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"ddcef01e-a9aa-4c00-a4bd-6198f7c3b2dc","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":221,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"f7ad8475-d9cc-4a5a-ba8c-199155875ffb","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":221,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"ecb1ac0e-5542-4ac9-939e-27b47b3b5c80","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":221,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"854188f9-23d0-4b60-9922-3394b22e66e1","block_type":"box","text":"are independent from the investment stewardship function.","page_number":221,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"1e0afc9b-ddfa-4abc-9c22-5460c221a23a","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":221,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"35407053-e9fb-4ea9-b57b-36ce00f2deda","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":221,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"d0eedc37-c9cb-4f92-9ee1-13f04397da12","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":221,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"9735dfec-4eb6-49bf-8eb9-068223690796","block_type":"box","text":"VOTE EXECUTION","page_number":221,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"a78826b0-0ad3-4116-acb2-f66b60ab5e7d","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":221,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"66aacfab-80ea-4cd6-a522-41497175e488","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":221,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"bdc285c1-504c-425b-a831-4ad966ee4e7a","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":221,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"b889bda2-4e5b-4374-a98c-1f2c39362aa7","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":221,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"43f18134-0a5b-4dba-920e-fe8f417d785e","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":221,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"0d5aec64-b59e-4bfe-bfb9-3f414477b528","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":221,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"a81152b6-5caf-4667-9dcf-71de1cd7f910","block_type":"box","text":"management policies and procedures,” below).","page_number":221,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"a3059bd4-fb46-4dab-ac25-0ab637f38adb","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":221,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"4438901f-9100-4639-874d-d4458313df16","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":221,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"cf1ff03b-c17e-43d5-b868-e00ae416a6c3","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":221,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"267da368-1064-4074-a85e-4913568a02ec","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":221,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"f967c048-df5d-485f-bee0-06abd944ec11","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":221,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"d9e1ce7d-7032-4c0e-8473-15dc2fe46f0c","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":221,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"1b761d07-ec6a-435a-9cc3-ee10d4beec80","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to","page_number":221,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"877f8b59-3a05-41e8-8d51-3b9b52f36c96","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":221,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"3f3ebacc-458e-4441-a6bd-70c244bacef1","block_type":"box","text":"16","page_number":221,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"3345f649-d08f-44ba-9c18-de17ecc56953","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":221,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"cbe2dae0-279a-403b-be88-6605281f86d1","block_type":"box","text":"December 2025.","page_number":221,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"c6eddbf9-29b6-47d1-84cd-707227b22bf0","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"6dbf1e5f-de1e-46f7-9c33-39d15aede775","block_type":"box","text":"Global Principles | 12","page_number":221,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"0da213a1-3401-4d19-9a50-49effdce8816","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"18a685b8-e1f5-49fc-a274-d90356dc2989","block_type":"box","text":"BIS votes proxies in these situations on a “best-efforts” basis. In addition, BIS may determine that it is generally","page_number":222,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"c07b3f2d-abe8-4c54-8aad-b3a6680f5ca1","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":222,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"b82e5c41-11b8-4bc0-ac3d-2d063b6048de","block_type":"box","text":"not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":222,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"496a59bd-28b9-4e4c-ba95-ff07130685b9","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":222,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"961faf55-9f38-4a42-91b2-a550517e5c2d","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":222,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"0f883832-8471-4912-9037-d491bcfc8bb5","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business partnership or","page_number":222,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"c3ba74f1-bb2d-41d4-8234-05792223d8e1","block_type":"box","text":"enterprise-level vendor management activities.","page_number":222,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"1064a6a7-75de-49d6-bc48-41a66ce7dd1b","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":222,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"6bbc37d5-d196-4be2-a70a-1f42f5ab3164","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":222,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"a6f9d649-4fe9-40eb-98d9-96f3cd4086a7","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":222,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"9d6e1dbd-db51-4d63-b1ac-fbaee695f318","block_type":"box","text":"BlackRock employees.","page_number":222,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"5a97b2d5-58dd-4aa7-8197-41bca23fb05e","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":222,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"cbdf4809-bea5-4d6e-ab80-f92246e73126","block_type":"box","text":"SECURITIES LENDING","page_number":222,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"d0f9d3b2-d049-4f77-999b-dffd94719600","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":222,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"c3b39abb-b8e4-45a6-9748-49746792073f","block_type":"box","text":"enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending agreements allow it to","page_number":222,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"5fe26db2-e963-4bd4-b2df-d4e312b1d414","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":222,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"47c42361-dac8-43dc-ae59-ed14d24842f4","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":222,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"4d80c7b6-97b8-4976-80c9-b76290a31516","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":222,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"0fa8609a-274b-4ac8-bc74-da77f2444dc2","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":222,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"f5a7f6f5-b3a5-4585-aed5-71d8ab0e6e5a","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":222,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"99f8efb8-7af7-4cf1-9f8b-5170519c7473","block_type":"box","text":"in helping them achieve their investment goals. 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Investing involves risk, including the loss of","page_number":224,"box":{"x":68,"y":792,"width":839,"height":11}},{"id":"f7e70cd2-9995-4e15-94f4-31a03c8ee531","block_type":"box","text":"principal.","page_number":224,"box":{"x":70,"y":807,"width":62,"height":11}},{"id":"67315e07-b1ee-462f-ace8-c70120edb698","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":224,"box":{"x":69,"y":852,"width":196,"height":11}},{"id":"092d2846-0b83-4656-a79d-263969af3a92","block_type":"box","text":"©2025 BlackRock, Inc. 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All other trademarks are those of their respective owners.","page_number":224,"box":{"x":70,"y":898,"width":624,"height":11}},{"id":"08f472d2-0fa2-450c-aebf-c344579521dc","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"103af0ef-43e9-4209-b5ba-602931bd44c5","block_type":"box","text":"Global Principles | 15","page_number":224,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"639c00cc-b737-4d65-aa1c-fc504cd5edcf","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e42d393f-c91e-48f8-af8d-b529e7f5bec2","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":359,"y":45,"width":260,"height":11}},{"id":"6250ed2c-9d12-4881-b6ac-4b59d004a378","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines","page_number":225,"box":{"x":297,"y":67,"width":384,"height":11}},{"id":"b59d588b-3f9d-4b59-bda0-0e11a0d505de","block_type":"box","text":"Effective as of January 2026","page_number":225,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"b7e70f07-cb0d-48d4-8e65-f51fc0bf8a0d","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":225,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eec9b930-fe4f-4690-9371-372459a377b2","block_type":"box","text":"Contents","page_number":226,"box":{"x":456,"y":45,"width":66,"height":9}},{"id":"26e7b74f-b92a-49df-8375-f92f8bb4b3c6","block_type":"box","text":"Introduction to BlackRock Investment Stewardship 3","page_number":226,"box":{"x":69,"y":80,"width":840,"height":11}},{"id":"c195ebc4-4287-4255-a66d-cb2df5682be2","block_type":"box","text":"Stewardship for clients with investment objectives relating to the low-carbon transition 3","page_number":226,"box":{"x":68,"y":96,"width":841,"height":11}},{"id":"5e43f28a-2e2d-458e-a19f-5fbce5002343","block_type":"box","text":"The Climate and Decarbonization Stewardship Guidelines 3","page_number":226,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"cf646b9a-4b9c-4761-90bd-4ebee98fb749","block_type":"box","text":"Understanding the investment implications of the transition to a low-carbon economy 4","page_number":226,"box":{"x":69,"y":129,"width":840,"height":11}},{"id":"782fb46a-0072-426c-8232-25e900efa32f","block_type":"box","text":"The Guidelines’ design principles","page_number":226,"box":{"x":68,"y":146,"width":240,"height":11}},{"id":"d32cd07e-94a7-4167-afa0-a81d73ff9bbd","block_type":"box","text":"4","page_number":226,"box":{"x":900,"y":146,"width":9,"height":8}},{"id":"d3b62fb7-70bb-484f-b141-d558be32c454","block_type":"box","text":"Voting approach under the Guidelines","page_number":226,"box":{"x":68,"y":162,"width":273,"height":11}},{"id":"86d2bd68-dcb6-4252-aef2-e60194864d5d","block_type":"box","text":"5","page_number":226,"box":{"x":901,"y":162,"width":8,"height":9}},{"id":"a38d6e85-a69e-4908-853f-9ccb33b8c9b8","block_type":"box","text":"Related matters","page_number":226,"box":{"x":69,"y":178,"width":117,"height":9}},{"id":"60ee1dd9-fa5b-4e38-86ae-31ee571c63ee","block_type":"box","text":"8","page_number":226,"box":{"x":900,"y":178,"width":9,"height":9}},{"id":"b38e176e-46ef-47b9-abf4-37e15c2096e6","block_type":"box","text":"Appendix 1","page_number":226,"box":{"x":68,"y":195,"width":82,"height":11}},{"id":"5b3011ac-dab7-4d42-9722-6776eb9848a8","block_type":"box","text":"10","page_number":226,"box":{"x":891,"y":195,"width":18,"height":9}},{"id":"d623b497-7605-4d12-9600-33c2de1e0429","block_type":"box","text":"Appendix 2","page_number":226,"box":{"x":68,"y":211,"width":82,"height":11}},{"id":"84f7b7a5-bc31-452d-bf75-717557f2a034","block_type":"box","text":"11","page_number":226,"box":{"x":891,"y":211,"width":18,"height":9}},{"id":"b8dcdad9-93f3-4cb4-a09d-b0e8bb9f22a9","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f4dcc87d-cfcf-494e-9200-d766ae5b1201","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 2","page_number":226,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"da0e9399-dc26-43c0-9ee0-3ea93cdfaea9","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":226,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c0831706-92e7-451c-904d-a90eda96a0ff","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":227,"box":{"x":264,"y":45,"width":450,"height":9}},{"id":"b98b5ad7-2ca0-4d72-8778-95c93277a257","block_type":"box","text":"At BlackRock, investment stewardship serves as a link between our clients and the companies they invest in and","page_number":227,"box":{"x":101,"y":68,"width":807,"height":10}},{"id":"abe25890-a397-48c6-aa01-31c275086cb7","block_type":"box","text":"is one of the ways we fulfill our fiduciary responsibilities as an asset manager on their behalf. 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They also incorporate the more ambitious","page_number":227,"box":{"x":69,"y":594,"width":834,"height":11}},{"id":"224dfc7f-33c6-44e5-876a-6876c68e1448","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":227,"box":{"x":68,"y":609,"width":806,"height":11}},{"id":"e8c1e1f8-d48e-4eab-a326-923022921e4d","block_type":"box","text":"6","page_number":227,"box":{"x":876,"y":609,"width":4,"height":5}},{"id":"937447f0-8d32-408a-b3ae-a6ddbc7ba42a","block_type":"box","text":"The Guidelines apply primarily to companies in sectors that play an important role in the transition to a low","page_number":227,"box":{"x":101,"y":632,"width":766,"height":11}},{"id":"fb0a30b6-2bfd-404d-bcd4-b23bc247e4a3","block_type":"box","text":"carbon economy. 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Under the Guidelines, the dedicated team","page_number":229,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"447e8c46-159f-47d7-a205-a8784af5c28a","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":229,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"a6bebce2-e056-4369-9eed-01397e8183cc","block_type":"box","text":"judgment of the priorities and outcomes most aligned with participating clients’ investment objectives.","page_number":229,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"330199c7-b997-4aac-86fc-752846d24172","block_type":"box","text":"Voting approach under the Guidelines","page_number":229,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"4742b01b-4806-4842-80e0-245e564059ad","block_type":"box","text":"12","page_number":229,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"72de91b7-3ced-48ff-a642-f312b882ecda","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":229,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"477a1a7d-eae6-4694-beaf-80b7c5ebae8f","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":229,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"85cb9c07-eebd-44b1-ae13-521b678588e3","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":229,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"11db82ed-c4f6-4dcc-b58c-85fff41fa7fc","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":229,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"0b658a6f-c44a-41c4-8c02-9d1a7ce9028d","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":229,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"2e1bb568-862a-40fe-8ea3-f17c09079cfb","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":229,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"3fc9a64b-e508-414d-aebb-6892506dfc88","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":229,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"8b2d8a29-d3fe-49c0-af0a-56abfc2a3549","block_type":"box","text":"Corporate Disclosures","page_number":229,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"482de60b-2609-4b98-8113-0d2a41e0c8e0","block_type":"box","text":"13","page_number":229,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"8f6ab219-d2d0-40e6-8109-0f4894a2d30c","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":229,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"a3511f3f-cde2-49d1-8a7b-8d24b06b6b9b","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":229,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"50373cc1-5ab8-445d-8675-563fef3d74d1","block_type":"box","text":"to companies that are important to the transition to a low-carbon economy to explain the strategy and governance","page_number":229,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"329caa73-9fb4-4b41-8afa-2ddded083388","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":229,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"3c7d55fd-b978-40e0-a2a6-739509afdadf","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":229,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"e448a04d-e649-43a5-840d-1a5e160bf942","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":229,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"15d044f4-4ef5-46d7-92c5-269b833242ae","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":229,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"c6f202f7-ff52-4c59-9927-71c8ad463494","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data supports investors","page_number":229,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"67ac85d9-36b0-499d-bf13-34de8c084e1f","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":229,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"c4799a54-7a87-4586-8a32-2c88b7e0e15b","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":229,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"d31903f4-8e05-4ee5-b98a-74220cd255b6","block_type":"box","text":"14, 15","page_number":229,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"32727c51-8c59-408a-884b-0cb799227f41","block_type":"box","text":"IFRS","page_number":229,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"18ca6502-4dc3-4c79-9d13-7f984fa7a48f","block_type":"box","text":"S1 addresses the general requirements of sustainability reporting and IFRS S2 sets out the disclosures that","page_number":229,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"fec3c922-1762-4020-bc9d-9226b0c53b8c","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":229,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"2b7c6450-387f-4bcb-9e33-efb1c19a0eaf","block_type":"box","text":"transition-related risks and opportunities. This includes receiving independent, third-party assurances, as audit","page_number":229,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"313dc4ba-b340-46f9-aa71-2d8602018315","block_type":"box","text":"and assurance standards are developed.","page_number":229,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"2cf01cab-7c6f-4127-9e32-2c89050e08e5","block_type":"box","text":"12","page_number":229,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"5325b444-db6d-418d-8582-c2a523ba1c1b","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":229,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"9528548f-3a88-4e21-a6fa-29621112bb2a","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":229,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"36fe787d-dbff-4652-a354-e9822cd103f4","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":229,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"ccc76797-bb39-4e2c-a8d6-37c943983b64","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":229,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"98edbb65-7fb5-4e48-8c89-a396438cf7e7","block_type":"box","text":"13","page_number":229,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"92b95f69-ad01-40c3-a8bb-0e5258fa02a4","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":229,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"77777c2b-c9b4-445a-a1c1-d9707e363fa4","block_type":"box","text":"reporting methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their","page_number":229,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"2fbc37a8-b909-4a2d-8b46-d05e5435918d","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":229,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"e65ff2ab-e7ad-475e-b121-4957db96e957","block_type":"box","text":"14","page_number":229,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"4f7f6c51-e182-45e1-ac22-3545b6cd1ba9","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":229,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"0d19b64f-cbf9-44a0-8266-73e44bc317ab","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":229,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"316fbc14-db2c-40d6-a532-14dec66a6861","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":229,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"38bb974d-4ee5-4d62-bd7e-2a9b11aac787","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":229,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"ac44dbb6-1fb5-4bb1-826d-14213f8ada72","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":229,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"d469e646-fd44-4516-bff5-f8bfac58b42b","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":229,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"fa3a2c2e-20b3-485f-9a70-a794fccd6524","block_type":"box","text":"15","page_number":229,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"a51b2423-000b-45c7-9f4b-366aad32a932","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":229,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"f24fe4c9-54aa-4b0a-ad2c-1ba1d4ae5f8c","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":229,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"d5368277-054f-401a-aaf9-b2fc4184954f","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we","page_number":229,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"6e586092-8825-452b-aa22-5524ee676e51","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":229,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"254c1275-510b-4dbc-a7f9-01dd30c751c5","block_type":"box","text":"may be phasing in reporting over several years. We do not prescribe timelines regarding when companies should","page_number":229,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"94062ffa-67ee-4d0d-b4b5-9dfd03658954","block_type":"box","text":"BlackRock Investment Stewardship","page_number":229,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"120273dc-5b4b-4dac-a0ca-8c3695e3cfcb","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":229,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"c8ed61a1-e8a8-4bcf-8bdd-e55c37d980ce","block_type":"box","text":"BNM1026U-6032633-19203498","page_number":229,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c7dc628a-b17c-4afd-aab9-5dc91b5c9d4c","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":230,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"a1768a85-99ee-4b7f-b6d4-150066de186b","block_type":"box","text":"16, 17","page_number":230,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"d791f88e-55ba-4653-aced-e52660f5946e","block_type":"box","text":"In addition, the dedicated team looks to","page_number":230,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"607a6309-b99a-42d7-acb6-5571442c43cc","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":230,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"dff7f576-dbb8-4338-b7ce-c0d8cccb35c5","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":230,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"27c1ee01-6955-4b03-98a7-e0bc9fcbc50f","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":230,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"9be3c57a-b445-4692-b9c7-f59b925383e8","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":230,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"f3d1d3b6-357b-4ac0-94ad-6f19e04f3528","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":230,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"b87e97cb-3502-4d9c-826d-81bcf419fb3d","block_type":"box","text":"18","page_number":230,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"2eea108f-085b-4258-9e6c-b5ff92d3cdf4","block_type":"box","text":"However,","page_number":230,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"6f715ea5-2e51-4602-8e39-3e4d755a4b64","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different parts of","page_number":230,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"1c8894f5-e185-44b4-bb41-97681713ca20","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":230,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"cf9a0858-e0e7-4833-b106-148606b0430d","block_type":"box","text":"their decarbonization targets. 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BlackRock views transition plans as a method","page_number":230,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"a4cee16a-5e51-4384-8ea1-e5875afc756d","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":230,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"1c19e7df-d1aa-4aef-ba08-8396d9059c4c","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":230,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"6d337378-30d2-4db5-b6d2-68f7a1217770","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Given forthcoming regulatory requirements in certain jurisdictions, some companies are voluntarily","page_number":231,"box":{"x":101,"y":420,"width":774,"height":11}},{"id":"fea78893-d2fa-48f0-8607-9ac39404e568","block_type":"box","text":"disclosing scope 3 emissions reductions targets and plans, setting out how they are working on decarbonization","page_number":231,"box":{"x":101,"y":435,"width":800,"height":11}},{"id":"be5cc51c-a3b7-43bc-8a13-6e60185e74ef","block_type":"box","text":"with the different constituents in their value chain.","page_number":231,"box":{"x":101,"y":450,"width":358,"height":9}},{"id":"b5f028af-5d1c-4af0-8d57-4a038fd62f35","block_type":"box","text":"21","page_number":231,"box":{"x":461,"y":451,"width":9,"height":4}},{"id":"9fd36245-bb34-4276-b667-4799adc7afb6","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":473,"width":6,"height":5}},{"id":"e8fc9518-a155-49b3-a834-715552f1a1a0","block_type":"box","text":"The company’s governance and oversight processes for managing material risks associated with corporate","page_number":231,"box":{"x":101,"y":470,"width":761,"height":12}},{"id":"8a08cb7e-33c0-483c-aa44-3ba08c087441","block_type":"box","text":"political activities including applicable policies and procedures where relevant.","page_number":231,"box":{"x":102,"y":486,"width":556,"height":11}},{"id":"d394d72e-b52f-4703-b1cf-f4171815ed4e","block_type":"box","text":"22","page_number":231,"box":{"x":660,"y":486,"width":8,"height":4}},{"id":"676b8757-696d-41dd-9948-b0c221beda99","block_type":"box","text":"The dedicated team looks for","page_number":231,"box":{"x":674,"y":486,"width":208,"height":9}},{"id":"80446450-d6a8-4170-850c-0690e0d221f2","block_type":"box","text":"public policy engagement to be consistent with a company’s stated strategic policy objectives, including those","page_number":231,"box":{"x":102,"y":501,"width":783,"height":11}},{"id":"bed025d7-f5e4-48da-926c-ea35d72e3375","block_type":"box","text":"related to the low-carbon transition.","page_number":231,"box":{"x":102,"y":516,"width":251,"height":9}},{"id":"ab3513d4-a6a9-48b2-9930-bdb09ff26045","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":231,"box":{"x":68,"y":546,"width":420,"height":11}},{"id":"d9d94061-e87f-4a73-a1c2-a0b4db1b61d7","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally supports non-executive directors standing for","page_number":231,"box":{"x":102,"y":569,"width":781,"height":11}},{"id":"75739b6d-568e-4236-a23e-c1c5b715e7cd","block_type":"box","text":"election where, in its assessment based on company disclosures and engagement, a company is executing on its","page_number":231,"box":{"x":69,"y":584,"width":811,"height":11}},{"id":"a60caf72-1f41-43ed-9b72-461a94824ee2","block_type":"box","text":"commitment to align with the transition to a low-carbon economy, as defined above. Where the dedicated team","page_number":231,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"68be3c86-51e5-4c3e-bea3-c4e1f87176ed","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":231,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"411fdd84-4349-4cd9-a8e4-94f812be88ed","block_type":"box","text":"having the most responsibility for the issue. 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This can be carried out by countries, companies and even","page_number":234,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"c744f8df-670c-4694-81a9-f48dab101fbb","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":234,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"b20b3386-3f3f-4614-81e3-0c60c22c12d0","block_type":"box","text":"e.g., methane.","page_number":234,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"121538a4-fb76-40fb-95bd-49bde932def7","block_type":"box","text":"Climate-related risks and opportunities:","page_number":234,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"cd566cda-626f-43b3-ba29-eab05048b6df","block_type":"box","text":"The investment opportunities and risks associated with the transition","page_number":234,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"ae63f87e-f178-4574-bcf4-02c1ee3c7518","block_type":"box","text":"to a low-carbon economy, including transition risks and opportunities and physical risks and opportunities in adapting","page_number":234,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"3124060d-98bc-48be-bcb8-a602ab212803","block_type":"box","text":"to physical climate change.","page_number":234,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"882b4b8e-4423-491c-9e61-21ac6b846fcd","block_type":"box","text":"Climate-related transition plan:","page_number":234,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"0f4434ab-ab97-4cb0-9e76-82a57b1db0ed","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":234,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"5582e33b-7fb7-48ac-9aa8-8acc092f2865","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":234,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"4152acbd-3166-45e6-8df7-62e33a3c3e22","block_type":"box","text":"greenhouse gas emissions.”","page_number":234,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"f034b55d-129a-4dcf-b6a6-d67d5aa092ed","block_type":"box","text":"27","page_number":234,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"8e2f4d11-ad7d-4f55-8fc5-d919d273cce4","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":234,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"06d63ae6-7ebc-44d5-93f9-9262e0102b23","block_type":"box","text":"Targets that “","page_number":234,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"66280c90-7b1f-44c0-8b45-a75f33bb5ba0","block_type":"box","text":"are in line with what the latest climate science","page_number":234,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"a33b5fc5-d8bb-4573-b8e5-d9e88829c595","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":234,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"0088e1b1-11f6-4a9f-931f-4db0e632518c","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":234,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"df64b089-91be-48cf-a2d8-899bd63b4252","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":234,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"a91856f4-c9d8-4299-8bcc-350350611628","block_type":"box","text":"with the Paris Agreement goals.”","page_number":234,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"d60c127b-3e05-4425-b7fb-d3576a40c9bd","block_type":"box","text":"28","page_number":234,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"6be3e8f5-f794-4458-a7b5-d2e007ec6d41","block_type":"box","text":"Scope 1:","page_number":234,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"b66f542d-037e-4cf1-aca7-39725441a730","block_type":"box","text":"Direct GHG emissions. 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[It] is defined as electricity [steam,","page_number":234,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"45f60081-6fd0-4648-a4a5-b0ac30536070","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":234,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"054fa129-65b2-40fb-8689-966b1dd81012","block_type":"box","text":"30","page_number":234,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"f6b8ae53-d8df-4e0d-acf1-d3e101dfb68d","block_type":"box","text":"Scope 3:","page_number":234,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"c7669ea2-30b7-4e80-a318-9afa6884a28a","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional reporting category that allows for the treatment","page_number":234,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"5b12acca-4b93-422b-8628-40894ea67c86","block_type":"box","text":"of all other indirect emissions. 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