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A-1","page_number":9,"box":{"x":407,"y":484,"width":502,"height":9}},{"id":"856c4159-b069-4c82-977e-5766720d99ca","block_type":"box","text":"Appendix B — Proxy Voting Policies . . . . . .","page_number":9,"box":{"x":68,"y":500,"width":300,"height":11}},{"id":"e9c8f659-3331-4bd7-b584-1b7ffab2b8d3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1","page_number":9,"box":{"x":374,"y":500,"width":535,"height":9}},{"id":"bf375624-58f8-4a02-961a-b59475230061","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":9,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"24298f33-584e-44de-bc4e-278f0595cbaa","block_type":"box","text":"PART I: INFORMATION ABOUT BLACKROCK ENERGY OPPORTUNITIES FUND","page_number":10,"box":{"x":212,"y":45,"width":554,"height":9}},{"id":"bd772a82-33be-4f8b-a3a7-257f7d91de99","block_type":"box","text":"Par t I of this Statement of Additional Information (“SAI”) sets for th information about BlackRock Energy","page_number":10,"box":{"x":102,"y":67,"width":737,"height":12}},{"id":"6cee4114-2b76-443a-9917-b174f6b379c1","block_type":"box","text":"Oppor tunities Fund (the “Fund”), a series of BlackRock Funds","page_number":10,"box":{"x":69,"y":82,"width":438,"height":11}},{"id":"6914ef27-33ef-45fe-a518-2fd23f73d02e","block_type":"box","text":"SM","page_number":10,"box":{"x":508,"y":83,"width":11,"height":4}},{"id":"594e0ab3-84a9-460e-8c5a-a3bda96d67ae","block_type":"box","text":"(the “Trust”). It includes information about the Trust’s","page_number":10,"box":{"x":525,"y":82,"width":384,"height":11}},{"id":"b79fee5c-180f-467a-91cf-3f5e0f96b094","block_type":"box","text":"Board of Trustees (the “Board”), the advisory and management services provided to and the management fees paid","page_number":10,"box":{"x":70,"y":98,"width":827,"height":11}},{"id":"600f8e53-74c4-46bd-8342-b758d0f5e3d5","block_type":"box","text":"by the Fund and information about other fees applicable to and services provided to the Fund. This Par t I of this SAI","page_number":10,"box":{"x":69,"y":113,"width":825,"height":11}},{"id":"05e4c302-a3c3-40e6-a674-e222894c1f8d","block_type":"box","text":"should be read in conjunction with the Fund’s Prospectus and those por tions of Par t II of this SAI that per tain to the","page_number":10,"box":{"x":69,"y":128,"width":829,"height":11}},{"id":"ce26717d-4915-4a4d-8308-e73dd90cbaff","block_type":"box","text":"Fund.","page_number":10,"box":{"x":70,"y":143,"width":36,"height":9}},{"id":"8d3c4822-c66f-4c9c-ae2e-44f4fb7beed5","block_type":"box","text":"I. Investment Objective and Policies","page_number":10,"box":{"x":69,"y":173,"width":262,"height":11}},{"id":"68c8ac1c-b050-4acc-ac39-0786822e5365","block_type":"box","text":"The Fund is subject to Rule 35d-1 under the Investment Company Act of 1940, as amended (the “Investment","page_number":10,"box":{"x":101,"y":196,"width":779,"height":11}},{"id":"c9285180-e685-4c7b-b6ac-74ac56b3cb86","block_type":"box","text":"Company Act”), and will not change its investment policies required by that Rule without giving shareholders sixty","page_number":10,"box":{"x":69,"y":211,"width":807,"height":11}},{"id":"bd299542-ae7e-41b4-9ca9-52eb9b017007","block_type":"box","text":"days’ prior written notice. Please see the section “Details About the Fund - How the Fund Invests” in the Fund’s","page_number":10,"box":{"x":69,"y":226,"width":794,"height":11}},{"id":"c10f883a-60f9-4a2d-ac90-3a5887d9fa0d","block_type":"box","text":"Prospectus for information about the Fund’s investment objective and policies.","page_number":10,"box":{"x":69,"y":241,"width":560,"height":11}},{"id":"3c9a340e-b4c9-4b0a-b71c-cda45d022345","block_type":"box","text":"Investments in Energy and Natural Resources Companies.","page_number":10,"box":{"x":102,"y":264,"width":422,"height":11}},{"id":"ba36196a-92cd-4ac9-9f5c-7511d8616782","block_type":"box","text":"The investments of the Fund will be concentrated in","page_number":10,"box":{"x":530,"y":264,"width":367,"height":9}},{"id":"a0a6bb52-581e-46fe-9196-6fcd77e7374d","block_type":"box","text":"energy and natural resources companies. Because the Fund is concentrated in these companies, it may be subject to","page_number":10,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"152bf64c-befa-4e1a-8ff4-5e26c1eddc44","block_type":"box","text":"more risks than if it were broadly diversified over numerous industries and sectors of the economy. A downturn in the","page_number":10,"box":{"x":69,"y":294,"width":835,"height":11}},{"id":"761e5c2d-f162-4213-8840-34ed9f675998","block_type":"box","text":"energy and natural resources industries would have a larger impact on the Fund than on an investment company that","page_number":10,"box":{"x":69,"y":309,"width":835,"height":11}},{"id":"09aaa20d-e5a6-430c-b19d-ae3d23eb5fbb","block_type":"box","text":"does not concentrate in such companies. Energy companies can be significantly affected by the supply of and","page_number":10,"box":{"x":69,"y":324,"width":782,"height":12}},{"id":"bfa2a182-ca7c-4498-925f-8e8ac720cf6a","block_type":"box","text":"demand for specific products and services, the supply of and demand for oil and gas, the price of oil and gas,","page_number":10,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"c9049888-9892-4d43-9822-54bc13af2396","block_type":"box","text":"exploration and production spending, government regulation, world events and economic conditions. Natural resource","page_number":10,"box":{"x":69,"y":355,"width":837,"height":11}},{"id":"41e05331-c4c0-4f58-9fb0-44b760de5b3f","block_type":"box","text":"companies can be significantly affected by events relating to international political developments, energy","page_number":10,"box":{"x":69,"y":370,"width":748,"height":11}},{"id":"72d8cc66-bfbe-42c0-82c1-a7eff9ea6c40","block_type":"box","text":"conservation, the success of exploration projects, commodity prices and tax and government regulations. At times,","page_number":10,"box":{"x":69,"y":385,"width":819,"height":11}},{"id":"e9d00577-b895-4c0b-a6cd-ab9bc58bfc8c","block_type":"box","text":"the per formance of securities of energy and natural resources companies will lag the per formance of other industries","page_number":10,"box":{"x":68,"y":400,"width":839,"height":11}},{"id":"57d5844b-8000-4e8b-8b71-9e610cc87bd7","block_type":"box","text":"or the broader market as a whole. Other risks inherent in investing in energy and natural resources companies","page_number":10,"box":{"x":69,"y":415,"width":787,"height":11}},{"id":"87e1bfac-f0fd-4a77-892b-ada4dc94d56f","block_type":"box","text":"include:","page_number":10,"box":{"x":70,"y":430,"width":53,"height":9}},{"id":"9559dfc3-afe7-4e2b-878f-a4e5c0da5648","block_type":"box","text":"Supply and Demand Risk.","page_number":10,"box":{"x":102,"y":453,"width":181,"height":11}},{"id":"cf925954-1123-4dbe-9a39-42e25034ab8c","block_type":"box","text":"A decrease in the production of natural gas, natural gas liquids (“NGLs”), crude oil,","page_number":10,"box":{"x":289,"y":453,"width":592,"height":11}},{"id":"750bbf83-0cd5-484c-8aa3-8cd946e65977","block_type":"box","text":"coal or other energy or other natural resource commodities or a decrease in the volume of such commodities","page_number":10,"box":{"x":69,"y":468,"width":777,"height":11}},{"id":"66f031fc-1393-4e79-8390-e0b2e3dfe736","block_type":"box","text":"available for transpor tation, mining, processing, storage or distribution may adversely impact the financial","page_number":10,"box":{"x":69,"y":483,"width":753,"height":11}},{"id":"31e961f0-ee8b-4211-a359-c63dff424b34","block_type":"box","text":"per formance of energy and natural resources companies. Production declines and volume decreases could be","page_number":10,"box":{"x":70,"y":498,"width":785,"height":11}},{"id":"1e9dbf62-fc84-4281-9cc4-6ad5c0e4421d","block_type":"box","text":"caused by various factors, including catastrophic events affecting production, depletion of resources, labor","page_number":10,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"20c8154d-17e7-4681-891d-4b0bacfa3361","block_type":"box","text":"difficulties, environmental proceedings, increased regulations, equipment failures and unexpected maintenance","page_number":10,"box":{"x":69,"y":528,"width":797,"height":12}},{"id":"66ee0f19-9fe5-43f9-ba99-b46eeac424cb","block_type":"box","text":"problems, impor t supply disruption, increased competition from alternative energy sources or commodity prices.","page_number":10,"box":{"x":70,"y":543,"width":799,"height":12}},{"id":"77e1228a-37c7-4a5e-84bc-a67290ac2fd4","block_type":"box","text":"Alternatively, a sustained decline in demand for such commodities could also adversely affect the financial","page_number":10,"box":{"x":68,"y":559,"width":760,"height":11}},{"id":"f5e5802a-d4c7-43f7-91fa-85372b7b2ac3","block_type":"box","text":"per formance of energy and natural resources companies. Factors which could lead to a decline in demand include","page_number":10,"box":{"x":70,"y":574,"width":813,"height":11}},{"id":"59d8aa2f-8a22-42db-ba5c-05d5becbd45e","block_type":"box","text":"economic recession or other adverse economic conditions, higher fuel taxes or governmental regulations, increases","page_number":10,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"4d7f8078-56fe-4bb5-a691-d668e8dd5cf8","block_type":"box","text":"in fuel economy, consumer shifts to the use of alternative fuel sources, changes in commodity prices, or weather.","page_number":10,"box":{"x":70,"y":604,"width":808,"height":11}},{"id":"83bbf8d9-1bc7-4ebc-8fc3-7a16e951f178","block_type":"box","text":"Depletion and Exploration Risk.","page_number":10,"box":{"x":102,"y":627,"width":221,"height":11}},{"id":"94eb0c0a-4ae3-4d1e-a7f3-d2bf5cd5062a","block_type":"box","text":"Many energy and natural resources companies are either engaged in the","page_number":10,"box":{"x":330,"y":627,"width":516,"height":11}},{"id":"e179b5cc-3a83-4009-8f7f-fa9f6e312496","block_type":"box","text":"production of natural gas, NGLs, crude oil, refined petroleum products or coal, or are engaged in transpor ting,","page_number":10,"box":{"x":70,"y":642,"width":782,"height":11}},{"id":"80f53bd9-feab-4e37-ad03-305439193e39","block_type":"box","text":"storing, distributing and processing these items on behalf of shippers. To maintain or grow their revenues, these","page_number":10,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"b914d78a-6235-4a0d-b804-689c04a4a122","block_type":"box","text":"companies or their customers need to maintain or expand their reserves through exploration of new sources of","page_number":10,"box":{"x":69,"y":672,"width":792,"height":11}},{"id":"25baab83-c032-4c0d-82fc-e96fecda58cf","block_type":"box","text":"supply, through the development of existing sources, through acquisitions, or through long-term contracts to acquire","page_number":10,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"c4f7f646-676b-45d8-8b08-069113adde90","block_type":"box","text":"reserves. The financial per formance of energy and natural resources companies may be adversely affected if they, or","page_number":10,"box":{"x":69,"y":702,"width":836,"height":12}},{"id":"55c1d921-1d49-4606-a296-50d718aabb64","block_type":"box","text":"the companies to whom they provide the service, are unable to cost-effectively acquire additional reserves sufficient","page_number":10,"box":{"x":68,"y":717,"width":833,"height":12}},{"id":"59e73233-d0e0-44ef-a85b-3f22a3551142","block_type":"box","text":"to replace the natural decline.","page_number":10,"box":{"x":68,"y":733,"width":213,"height":10}},{"id":"42392f8d-fcf8-4425-9a21-1e82ba7043f3","block_type":"box","text":"Regulatory Risk.","page_number":10,"box":{"x":102,"y":755,"width":114,"height":11}},{"id":"8434d740-964e-44b8-87f7-306e77b1ac98","block_type":"box","text":"Energy and natural resources companies are subject to significant Federal, state and local","page_number":10,"box":{"x":224,"y":755,"width":642,"height":11}},{"id":"680be08c-cd93-4757-913e-3837332d0adc","block_type":"box","text":"government regulation in vir tually every aspect of their operations, including how facilities are constructed,","page_number":10,"box":{"x":68,"y":770,"width":760,"height":12}},{"id":"d17c9727-aee2-415d-bb47-c6948d32b39f","block_type":"box","text":"maintained and operated, environmental and safety controls and the prices they may charge for the products and","page_number":10,"box":{"x":69,"y":785,"width":807,"height":12}},{"id":"3a992491-6293-4e81-a209-998bf0f7443d","block_type":"box","text":"services they provide. Various governmental authorities have the power to enforce compliance with these regulations","page_number":10,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"e5ace289-591d-46c1-a688-52a31bdb2aac","block_type":"box","text":"and the permits issued under them, and violators are subject to administrative, civil and criminal penalties, including","page_number":10,"box":{"x":69,"y":816,"width":833,"height":11}},{"id":"993bd419-4c71-47a1-8c95-4c9e38b568ca","block_type":"box","text":"civil fines, injunctions or both. Stricter laws, regulations or enforcement policies could be enacted in the future which","page_number":10,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"34c41b9d-5aa8-4ee4-923b-442f95c6af62","block_type":"box","text":"would likely increase compliance costs and may adversely affect the financial per formance of energy and natural","page_number":10,"box":{"x":68,"y":846,"width":804,"height":11}},{"id":"bc600cc6-b148-434a-848b-b4d3cd2a0f37","block_type":"box","text":"resources companies.","page_number":10,"box":{"x":69,"y":861,"width":156,"height":11}},{"id":"8adba51d-cd17-4f33-9994-bd84259a6d04","block_type":"box","text":"Commodity Pricing Risk.","page_number":10,"box":{"x":102,"y":884,"width":169,"height":11}},{"id":"1cbb8374-86b3-4c73-9468-12edf94d54cb","block_type":"box","text":"The operations and financial per formance of energy and natural resources companies","page_number":10,"box":{"x":277,"y":884,"width":613,"height":11}},{"id":"c4eaa1eb-8440-4572-b74e-f63d7f18fa4c","block_type":"box","text":"may be directly affected by energy and other natural resource commodity prices, especially those energy and natural","page_number":10,"box":{"x":69,"y":899,"width":829,"height":11}},{"id":"c727a230-9554-49cb-86ba-0e6e35e922a3","block_type":"box","text":"I-1","page_number":10,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"15f482fa-5918-4d15-a4c4-131460e1da1e","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":10,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d5d5699-8ce8-4101-a7e5-0480bfa0ba25","block_type":"box","text":"resources companies which own the underlying energy or other natural resource commodity. 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Purchase any securities which would cause 25% or more of the value of the Fund’s total assets at the","page_number":16,"box":{"x":135,"y":67,"width":746,"height":11}},{"id":"ddc0dc29-51a0-4dff-86ce-70e76ffab23c","block_type":"box","text":"time of purchase to be invested in the securities of one or more issuers conducting their principal business","page_number":16,"box":{"x":101,"y":82,"width":766,"height":12}},{"id":"322ddc1c-2c6c-4c7b-9f4d-d6dfe005b278","block_type":"box","text":"activities in the same industry, provided that (a) the Fund will cause 25% or more of its total assets at the time","page_number":16,"box":{"x":102,"y":98,"width":791,"height":11}},{"id":"e64da57b-de21-4122-932d-59a3d674b3f4","block_type":"box","text":"of purchase to be invested in the securities of one or more issuers conducting their principal business activities","page_number":16,"box":{"x":102,"y":113,"width":797,"height":11}},{"id":"d6f09618-4159-435f-bea5-2ff8e0ff7175","block_type":"box","text":"in energy or natural resources industries as described in the Prospectuses; (b) there is no limitation with respect","page_number":16,"box":{"x":102,"y":128,"width":805,"height":11}},{"id":"7ed8979f-8e29-43a4-bfa9-f499761ff736","block_type":"box","text":"to (i) instruments issued or guaranteed by the United States and tax exempt instruments issued by any state,","page_number":16,"box":{"x":101,"y":143,"width":782,"height":11}},{"id":"0b506242-ea3c-4670-8782-f92d9010490c","block_type":"box","text":"territory or possession of the United States, the District of Columbia or any of their authorities, agencies,","page_number":16,"box":{"x":101,"y":158,"width":750,"height":11}},{"id":"498bb4c8-12a2-4f24-aa1c-0b5c23359cf7","block_type":"box","text":"instrumentalities or political subdivisions, and (ii) repurchase agreements secured by the instruments described","page_number":16,"box":{"x":102,"y":173,"width":799,"height":11}},{"id":"f9f47076-1287-4392-82d1-6a840dbc3690","block_type":"box","text":"in clause (i); (c) wholly-owned finance companies will be considered to be in the industries of their parents if their","page_number":16,"box":{"x":102,"y":188,"width":806,"height":11}},{"id":"3eb85100-f6d7-4963-8a8d-55742fb79164","block_type":"box","text":"activities are primarily related to financing the activities of the parents; and (d) utilities will be divided according","page_number":16,"box":{"x":102,"y":203,"width":794,"height":12}},{"id":"bd89e6d7-5add-4581-bd4f-dee3fd5c667b","block_type":"box","text":"to their services; for example, gas, gas transmission, electric and gas, electric and telephone will each be","page_number":16,"box":{"x":101,"y":218,"width":756,"height":12}},{"id":"3b5e3b8f-e0a7-44d3-8ce8-d3cd219e7a2e","block_type":"box","text":"considered a separate industry.","page_number":16,"box":{"x":101,"y":234,"width":225,"height":11}},{"id":"5417f4f3-769e-4758-92e5-1b931462af78","block_type":"box","text":"2. Borrow money or issue senior securities, except that the Fund may borrow from banks and enter into","page_number":16,"box":{"x":134,"y":256,"width":738,"height":11}},{"id":"aa0badf9-1dda-4c46-8af3-a33beeb70944","block_type":"box","text":"reverse repurchase agreements for temporary purposes in amounts up to one-third of the value of its total","page_number":16,"box":{"x":102,"y":271,"width":757,"height":12}},{"id":"d48d98fb-af54-4264-a0cd-0f23092eed02","block_type":"box","text":"assets at the time of such borrowing; or mor tgage, pledge or hypothecate any assets, except in connection with","page_number":16,"box":{"x":102,"y":286,"width":797,"height":12}},{"id":"573105a4-e4c3-47c8-ba88-5d76e2ae5909","block_type":"box","text":"any such borrowing and then in amounts not in excess of one-third of the value of the Fund’s total assets at the","page_number":16,"box":{"x":102,"y":302,"width":798,"height":11}},{"id":"cfd2237e-4f85-441b-a393-4c60ff69ae73","block_type":"box","text":"time of such borrowing. The Fund will not purchase securities while its aggregate borrowings (including reverse","page_number":16,"box":{"x":101,"y":317,"width":789,"height":11}},{"id":"a5666c56-af85-4da2-bc44-9bac141a9add","block_type":"box","text":"repurchase agreements and borrowings from banks) in excess of 5% of its total assets are outstanding.","page_number":16,"box":{"x":102,"y":332,"width":741,"height":11}},{"id":"50f2d40a-b35e-47cd-a2cb-edd34d93f1a1","block_type":"box","text":"Securities held in escrow or separate accounts in connection with the Fund’s investment practices are not","page_number":16,"box":{"x":102,"y":347,"width":757,"height":11}},{"id":"476a1357-132f-4741-b49d-e91d05aad42f","block_type":"box","text":"deemed to be pledged for purposes of this limitation.","page_number":16,"box":{"x":101,"y":362,"width":379,"height":11}},{"id":"5c191521-3eff-4cbf-a0ac-53c9beb354c7","block_type":"box","text":"3. Purchase or sell real estate, except that the Fund may purchase securities of issuers which deal in real","page_number":16,"box":{"x":134,"y":385,"width":755,"height":11}},{"id":"8ce60f88-9623-46a7-9c71-91ff8886b233","block_type":"box","text":"estate and may purchase securities which are secured by interests in real estate.","page_number":16,"box":{"x":101,"y":400,"width":582,"height":11}},{"id":"b2e8df52-93e2-4192-9f54-143c27bf2e86","block_type":"box","text":"4. Acquire any other investment company or investment company security except in connection with a","page_number":16,"box":{"x":134,"y":423,"width":723,"height":11}},{"id":"d361d30a-7fc5-4c2c-9157-c0dc754659a4","block_type":"box","text":"merger, consolidation, reorganization or acquisition of assets or where otherwise permitted by the Investment","page_number":16,"box":{"x":102,"y":438,"width":784,"height":11}},{"id":"d272ea14-11a6-431f-b299-79d48855aff3","block_type":"box","text":"Company Act.","page_number":16,"box":{"x":102,"y":453,"width":95,"height":11}},{"id":"57acd8af-926b-4dd1-9ee7-d1a69e0a8ea0","block_type":"box","text":"5. Act as an underwriter of securities within the meaning of the Securities Act of 1933, as amended, except","page_number":16,"box":{"x":134,"y":475,"width":771,"height":12}},{"id":"312020f0-a45a-42d4-be38-a55d9191783e","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":16,"box":{"x":101,"y":491,"width":797,"height":11}},{"id":"34463687-d7c4-4db1-8b75-52477af3347e","block_type":"box","text":"accordance with the Fund’s investment objective, policies and limitations may be deemed to be underwriting.","page_number":16,"box":{"x":102,"y":506,"width":777,"height":11}},{"id":"6de9777c-faca-4392-9406-ae3690d04ee0","block_type":"box","text":"6. Write or sell put options, call options, straddles, spreads, or any combination thereof, except for","page_number":16,"box":{"x":134,"y":528,"width":706,"height":12}},{"id":"d57df817-e9f3-460e-a887-916035ba6422","block_type":"box","text":"transactions in options on securities and securities indices, futures contracts and options on futures contracts","page_number":16,"box":{"x":101,"y":543,"width":790,"height":11}},{"id":"8a992bf9-40b4-429d-93a4-1f63c21cb76c","block_type":"box","text":"and currencies.","page_number":16,"box":{"x":102,"y":559,"width":108,"height":9}},{"id":"c32c3e6c-c406-457b-854b-dabd9bfce6f7","block_type":"box","text":"7. Purchase securities of companies for the purpose of exercising control.","page_number":16,"box":{"x":135,"y":581,"width":526,"height":12}},{"id":"84360bbd-3d36-4659-866c-db85a1e83185","block_type":"box","text":"8. Purchase securities on margin, make shor t sales of securities or maintain a shor t position, except that","page_number":16,"box":{"x":134,"y":604,"width":757,"height":11}},{"id":"439be895-5d97-4798-98f5-2f9217e18d6e","block_type":"box","text":"(a) this investment limitation shall not apply to the Fund’s transactions in futures contracts and related options","page_number":16,"box":{"x":102,"y":619,"width":791,"height":11}},{"id":"3b5f2de9-40f1-42e8-9308-5a9ddd1591de","block_type":"box","text":"or the Fund’s sale of securities shor t against the box, and (b) the Fund may obtain shor t-term credit as may be","page_number":16,"box":{"x":102,"y":634,"width":790,"height":12}},{"id":"0aa37d38-9601-45ba-9612-d0edb95d027c","block_type":"box","text":"necessary for the clearance of purchases and sales of por tfolio securities.","page_number":16,"box":{"x":102,"y":649,"width":531,"height":12}},{"id":"b5f3946d-cf0c-4d71-92a9-e9107716ad4e","block_type":"box","text":"9. Purchase or sell commodity contracts, or invest in oil, gas or mineral exploration or development","page_number":16,"box":{"x":134,"y":672,"width":707,"height":11}},{"id":"782cb819-d2c7-4e6d-b0c9-64b92919e8cf","block_type":"box","text":"programs, except that the Fund may, to the extent appropriate to its investment policies, purchase securities of","page_number":16,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"045741b9-699b-452e-9ec8-23e2db40be08","block_type":"box","text":"companies engaging in whole or in par t in such activities and may enter into futures contracts and related","page_number":16,"box":{"x":101,"y":702,"width":755,"height":12}},{"id":"b3661144-e4da-405d-bb7a-3de9f145ff1f","block_type":"box","text":"options.","page_number":16,"box":{"x":102,"y":718,"width":55,"height":10}},{"id":"cbe5f93d-71dd-4ae1-a632-6209ec19fb19","block_type":"box","text":"10. Make loans, except that the Fund may purchase and hold debt instruments and enter into repurchase","page_number":16,"box":{"x":135,"y":740,"width":754,"height":11}},{"id":"78b8eea3-2187-4c10-881e-97e58080bf1a","block_type":"box","text":"agreements in accordance with its investment objective and policies and may lend por tfolio securities.","page_number":16,"box":{"x":102,"y":755,"width":729,"height":11}},{"id":"2f74255b-b7fc-4454-9e71-45bbbbfcc7a8","block_type":"box","text":"11. Purchase or sell commodities except that the Fund may, to the extent appropriate to its investment","page_number":16,"box":{"x":135,"y":778,"width":735,"height":11}},{"id":"c0e866fb-8ea8-411d-a5b2-b71d1924ae83","block_type":"box","text":"policies, purchase securities of companies engaging in whole or in par t in such activities, may engage in","page_number":16,"box":{"x":102,"y":793,"width":744,"height":11}},{"id":"432d76d9-0d90-4d96-81a1-85f92ee89963","block_type":"box","text":"currency transactions and may enter into futures contracts and related options.","page_number":16,"box":{"x":101,"y":808,"width":565,"height":11}},{"id":"5b90def5-2846-4a89-98ca-6df87ebe94da","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":16,"box":{"x":102,"y":831,"width":494,"height":11}},{"id":"3f315dd7-7964-404d-95ae-e41cc2d83809","block_type":"box","text":"The following notations are not considered to be par t of the Fund’s fundamental investment restrictions and are","page_number":16,"box":{"x":101,"y":853,"width":799,"height":12}},{"id":"dae6ae30-9847-4e0e-832a-7433a8e3a634","block_type":"box","text":"subject to change without shareholder approval.","page_number":16,"box":{"x":69,"y":869,"width":341,"height":11}},{"id":"1a689e62-8499-4c35-abb3-191dd0c4f36b","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":891,"width":768,"height":11}},{"id":"b0044771-b5b7-4d37-8423-93801f7629e7","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":906,"width":817,"height":12}},{"id":"d75582fe-2c39-4320-8437-ba204f9d4d84","block_type":"box","text":"I-7","page_number":16,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"05ff49ff-c75f-49cc-9b50-ed8c4f162a60","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":16,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"25a83461-2aa3-456b-be97-ea38d8ee93e4","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":17,"box":{"x":70,"y":45,"width":817,"height":11}},{"id":"252fb005-7c9a-469e-aedd-2c85c46852f8","block_type":"box","text":"broad authority to the Fund as to how to classify issuers within or among industries.","page_number":17,"box":{"x":69,"y":60,"width":597,"height":11}},{"id":"8a3c6c0d-73a4-4881-821e-8d8d44422506","block_type":"box","text":"While cer tain swaps are now considered commodity interests for purposes of the Commodity Exchange Act and","page_number":17,"box":{"x":101,"y":82,"width":793,"height":12}},{"id":"2b415483-6f6c-40e6-851f-eabf498c305a","block_type":"box","text":"the rules thereunder, at the time of the Fund’s adoption of fundamental investment restrictions no. 6, 9 and 11","page_number":17,"box":{"x":68,"y":98,"width":796,"height":11}},{"id":"88ee7c3f-e7a7-4efe-97cf-f5c9874438a5","block_type":"box","text":"above, many swaps were treated as securities for purposes of the Fund’s compliance with applicable law.","page_number":17,"box":{"x":69,"y":113,"width":752,"height":11}},{"id":"b2f0febc-9a73-42ea-89f2-7e8e57cf64b1","block_type":"box","text":"Accordingly, fundamental investment restriction no. 6, which does not restrict transactions in options on securities","page_number":17,"box":{"x":68,"y":128,"width":817,"height":11}},{"id":"a743ab23-f1fc-4534-89ce-1a08bf9bd176","block_type":"box","text":"and securities indices, and fundamental restrictions no. 9 and 11 are being interpreted to permit the Fund to engage","page_number":17,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"3b646643-84e0-4dff-9281-3bb247ee390b","block_type":"box","text":"in transactions in swaps and options on swaps, as applicable, related to financial instruments, such as securities,","page_number":17,"box":{"x":70,"y":158,"width":815,"height":11}},{"id":"b5274eb4-63cb-4bf3-bba0-4dde0de783df","block_type":"box","text":"securities indices and currencies, but not to engage in transactions in swaps or options on swaps related to physical","page_number":17,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"9a1c36ec-4ff1-4886-84bd-19fd2ccf5dee","block_type":"box","text":"commodities, such as oil or metals.","page_number":17,"box":{"x":69,"y":188,"width":254,"height":11}},{"id":"4de95bcd-6ce3-4829-8bf9-fbb1f767aafe","block_type":"box","text":"With respect to the fundamental policy relating to issuing senior securities above, the Investment Company Act,","page_number":17,"box":{"x":101,"y":211,"width":795,"height":11}},{"id":"feb5982b-8156-4b56-a655-5f81479c76dd","block_type":"box","text":"including the rules and regulations thereunder, generally prohibits the Fund from issuing senior securities (other than","page_number":17,"box":{"x":70,"y":226,"width":832,"height":11}},{"id":"eb88c8a6-6163-413e-8eee-4945a732ac50","block_type":"box","text":"cer tain temporary borrowings) unless immediately after the issuance the Fund has satisfied an asset coverage","page_number":17,"box":{"x":69,"y":241,"width":790,"height":11}},{"id":"f64687cd-4787-46d4-9ec3-c7c46b3952b1","block_type":"box","text":"requirement with respect to senior securities representing indebtedness prescribed by the Investment Company Act.","page_number":17,"box":{"x":69,"y":256,"width":828,"height":12}},{"id":"cf864e18-51d9-4756-9651-bf3cf43dc201","block_type":"box","text":"Cer tain trading practices and investments, such as derivatives transactions, may be treated as senior securities.","page_number":17,"box":{"x":69,"y":272,"width":805,"height":11}},{"id":"63088bee-d206-4dfa-95e2-0139b6d15c5f","block_type":"box","text":"Prior to the adoption and implementation of Rule 18f-4 under the Investment Company Act, when the Fund engaged in","page_number":17,"box":{"x":69,"y":286,"width":839,"height":12}},{"id":"bf4995a6-5a8e-4efd-9e42-98758b7b7823","block_type":"box","text":"a derivatives transaction that creates future payment obligations, consistent with SEC staff guidance and","page_number":17,"box":{"x":69,"y":302,"width":749,"height":11}},{"id":"359f5850-8c35-4447-8ced-7307aa60b77c","block_type":"box","text":"interpretations, the Fund was permitted to segregate or earmark liquid assets, or enter into an offsetting position, in","page_number":17,"box":{"x":70,"y":317,"width":830,"height":11}},{"id":"f59703bc-a372-433a-b31f-d404ef9d552b","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":17,"box":{"x":69,"y":332,"width":823,"height":11}},{"id":"9f443f83-d247-4ebb-aec6-8b9980b2daab","block_type":"box","text":"the asset coverage requirement with respect to senior securities prescribed by the Investment Company Act. The SEC","page_number":17,"box":{"x":68,"y":347,"width":840,"height":11}},{"id":"14fa9fac-fe54-4601-b64f-af0cac80d310","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":17,"box":{"x":69,"y":362,"width":817,"height":11}},{"id":"49780270-804f-4a53-8a6f-ac44df5e5ccd","block_type":"box","text":"complies with Rule 18f-4 with respect to its derivatives transactions. Thus, the fundamental policy relating to issuing","page_number":17,"box":{"x":69,"y":377,"width":831,"height":12}},{"id":"8b675e5d-75d5-413d-b6a5-dca3b9ff0745","block_type":"box","text":"senior securities above will not restrict the Fund from entering into derivatives transactions that are treated as senior","page_number":17,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"60cbdfd7-0e85-4fb4-a515-b25858de5310","block_type":"box","text":"securities so long as the Fund complies with Rule 18f-4 with respect to such derivatives transactions.","page_number":17,"box":{"x":69,"y":407,"width":724,"height":12}},{"id":"c5fa9803-5642-4abf-bae6-6e6e63cd8353","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":17,"box":{"x":102,"y":430,"width":768,"height":11}},{"id":"a99a60cb-31c4-40c2-abfb-93f79ee34b1c","block_type":"box","text":"approval, the Fund may not:","page_number":17,"box":{"x":69,"y":446,"width":197,"height":10}},{"id":"13eb2fb0-1d5e-4b67-8288-eaec8246a9e4","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":17,"box":{"x":102,"y":468,"width":742,"height":11}},{"id":"9e13035d-28c9-4fc8-a829-baaab29f3877","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":17,"box":{"x":69,"y":483,"width":759,"height":11}},{"id":"1150b6c0-ccc3-4d21-84fb-06bd83d6a5f5","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of funds”","page_number":17,"box":{"x":70,"y":498,"width":829,"height":11}},{"id":"10718fac-135b-41b4-98a9-2366177d98c6","block_type":"box","text":"provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are purchased by","page_number":17,"box":{"x":70,"y":513,"width":808,"height":12}},{"id":"902b4af8-235e-4c75-a247-65df92776fcc","block_type":"box","text":"another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":17,"box":{"x":69,"y":528,"width":763,"height":12}},{"id":"e067a72f-27d0-4298-9d14-85a62a4e70bb","block_type":"box","text":"Unless otherwise indicated or with respect to policies adopted pursuant to Rule 35d-1 under the Investment","page_number":17,"box":{"x":102,"y":551,"width":771,"height":11}},{"id":"86e71ccd-7a83-4fa9-8581-c37cfaef0729","block_type":"box","text":"Company Act, all limitations under the Fund’s fundamental or non-fundamental investment restrictions apply only at","page_number":17,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"c6d24eae-9fea-4abc-8d20-8063c0649887","block_type":"box","text":"the time that a transaction is under taken. Any change in the percentage of the Fund’s assets invested in cer tain","page_number":17,"box":{"x":68,"y":581,"width":803,"height":12}},{"id":"8e88d9b9-22b4-4bc6-9bc5-fea2cc710f8b","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":17,"box":{"x":69,"y":596,"width":835,"height":12}},{"id":"ea0cdfb8-d5f1-4059-9006-5ff7780b92b7","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":17,"box":{"x":69,"y":612,"width":833,"height":11}},{"id":"93976e50-0e89-47b4-8b07-e116cfe8c46a","block_type":"box","text":"investment without undue market or tax consequences.","page_number":17,"box":{"x":70,"y":627,"width":393,"height":11}},{"id":"d49a82d3-764d-4880-bb51-44d4b6bd68b5","block_type":"box","text":"III. Information on Trustees and Officers","page_number":17,"box":{"x":69,"y":657,"width":290,"height":9}},{"id":"a599fa49-ec8b-46a6-9ffc-04ebbf3a19d9","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Trustee”), thir teen of whom are not “interested persons” of","page_number":17,"box":{"x":101,"y":680,"width":788,"height":11}},{"id":"55faf870-92c2-472d-b79f-50c5aec5c891","block_type":"box","text":"the Trust as defined in the Investment Company Act (the “Independent Trustees”). The registered investment","page_number":17,"box":{"x":68,"y":695,"width":779,"height":11}},{"id":"89bca2ad-1237-4d36-856b-9bb930da62cf","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":17,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"74a529c0-7501-440e-afc8-4e0c339deb09","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":17,"box":{"x":70,"y":725,"width":793,"height":11}},{"id":"4f5df8a0-fd3d-4147-b5f7-218ddabcca02","block_type":"box","text":"Complex”). The Trust is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":17,"box":{"x":69,"y":740,"width":822,"height":11}},{"id":"66b64275-b90e-45fa-87b7-3c6e03ede085","block_type":"box","text":"The Trustees also oversee as board members the operations of the other open-end registered investment companies","page_number":17,"box":{"x":68,"y":755,"width":837,"height":11}},{"id":"6f4999e2-0bfa-4418-868f-c217aa5a051a","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":17,"box":{"x":70,"y":770,"width":335,"height":11}},{"id":"8ce9c4cd-54cc-4bac-9128-c11d33f29b6b","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":793,"width":769,"height":11}},{"id":"da082dc4-eeb4-42e0-aef2-9d0b1cb1f8d8","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":808,"width":827,"height":11}},{"id":"dbd9c8f3-1b49-4b92-b103-85e9d6c1b901","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":823,"width":821,"height":12}},{"id":"8abaf47b-2014-42a4-ae3a-22d03786d1aa","block_type":"box","text":"Committee, a Per formance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board","page_number":17,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"28e11c19-a827-490f-a4f3-df0437c3ff26","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":853,"width":830,"height":12}},{"id":"7f8fe141-c328-4eaf-b416-7d941f182502","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee per forms a similar role with respect to the","page_number":17,"box":{"x":68,"y":869,"width":789,"height":11}},{"id":"9c274713-7a6f-4563-9e5c-264482f80aca","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also per form such other functions as may be","page_number":17,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"891f421d-6ea0-4f34-992b-244fcd0c53ab","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":899,"width":809,"height":11}},{"id":"73294c85-14b9-4ece-a336-c562593ba039","block_type":"box","text":"I-8","page_number":17,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"e738a927-643b-40c1-9ce7-f00a531d4c96","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":17,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6d52b1e0-88e1-4a55-b61b-b67efb22465f","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":18,"box":{"x":70,"y":45,"width":794,"height":11}},{"id":"5e81ed2b-f13d-46ed-9b13-16f3c10aea94","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":18,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"c07da927-63dd-4c4c-85a0-da39180ec4d8","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and repor ts","page_number":18,"box":{"x":69,"y":75,"width":831,"height":11}},{"id":"162a5d92-7500-4278-a4c4-80ee7f097fac","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":18,"box":{"x":70,"y":90,"width":811,"height":11}},{"id":"ac37ea13-52c7-4320-a439-150ad911d3e3","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":18,"box":{"x":68,"y":105,"width":809,"height":11}},{"id":"88991d50-c5c4-407f-ac68-b1e3b7f915c8","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":18,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"95d5d9c9-d323-4218-a939-119a47d051d0","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":18,"box":{"x":69,"y":135,"width":441,"height":12}},{"id":"93a6a47b-09d7-4000-a19d-66b9a3081407","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":18,"box":{"x":101,"y":158,"width":777,"height":11}},{"id":"bf5c0380-ea1f-45c8-802f-722da6a0b56d","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":18,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"37fc64ec-3cc2-4cd3-bcaf-a9d830d30ed0","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Trust’s char ter, and the Fund’s","page_number":18,"box":{"x":68,"y":188,"width":820,"height":11}},{"id":"cc431f6d-af7c-428c-b57b-47db94ad839f","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s per formance, operations","page_number":18,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"87affa26-3be4-4337-b3cb-5463dfe3afd5","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":18,"box":{"x":69,"y":218,"width":819,"height":12}},{"id":"78c5b346-660c-4e07-9a74-64311bf694bd","block_type":"box","text":"the operations of the Fund.","page_number":18,"box":{"x":68,"y":234,"width":192,"height":11}},{"id":"6e8e9f0d-65ad-4bc2-a3d1-48a6ce378c04","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":18,"box":{"x":102,"y":256,"width":785,"height":12}},{"id":"fce01fbe-7374-46e0-a4bb-cb7ce98db277","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":18,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"76b18d23-33e8-464f-831d-6f611699e4a0","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":18,"box":{"x":69,"y":286,"width":832,"height":12}},{"id":"871abac3-2a4c-4374-961c-52ef0557d12d","block_type":"box","text":"there are a number of risk management functions per formed by the Manager and the sub-advisers or other service","page_number":18,"box":{"x":68,"y":302,"width":820,"height":11}},{"id":"b692cda7-3767-4bd9-b080-0a0564d5d32d","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":18,"box":{"x":70,"y":317,"width":811,"height":11}},{"id":"af3af4d5-2d76-42c2-a299-7ff7bb96e97a","block_type":"box","text":"par t of the Board’s general oversight of the Fund and is addressed as par t of various Board and Committee","page_number":18,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"14cc4152-7f80-40af-936b-dc512c6640a0","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews repor ts from, among others, management, the","page_number":18,"box":{"x":69,"y":347,"width":815,"height":11}},{"id":"b428050e-b3c4-4d52-93c8-5c7b9f9929e8","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":18,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"12331d7b-e6da-4e3f-8d59-808f31206090","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":18,"box":{"x":69,"y":377,"width":840,"height":12}},{"id":"d8460928-d1e4-4dac-ad54-f7a190540e73","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees,","page_number":18,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"4cd168b1-ab76-40cd-8eb6-5011518c1c8f","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":18,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"3c689c2f-9937-4973-8548-e9814e143c72","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":18,"box":{"x":69,"y":423,"width":812,"height":11}},{"id":"1ca09dd6-7187-41ce-a5f3-f7044124fca9","block_type":"box","text":"testing of the Trust’s compliance program and repor ts to the Board regarding compliance matters for the Fund and","page_number":18,"box":{"x":68,"y":438,"width":818,"height":11}},{"id":"98efa566-31cd-4fe2-9a4e-411c09d37fa2","block_type":"box","text":"its service providers. The Independent Trustees have engaged independent legal counsel to assist them in","page_number":18,"box":{"x":70,"y":453,"width":759,"height":11}},{"id":"a2837fc8-df23-4e51-b858-9afebedd022c","block_type":"box","text":"per forming their oversight responsibilities.","page_number":18,"box":{"x":70,"y":468,"width":299,"height":11}},{"id":"2b3b5be0-b05a-4b75-985e-7f8501714975","block_type":"box","text":"Audit Committee.","page_number":18,"box":{"x":101,"y":491,"width":122,"height":9}},{"id":"c67a5af7-d6a2-4c1c-ae32-43e434c31cd9","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":18,"box":{"x":229,"y":491,"width":673,"height":11}},{"id":"19060143-8067-49e4-bea1-7c95f386c6a8","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":18,"box":{"x":68,"y":506,"width":831,"height":11}},{"id":"3cf2c81b-4fdf-4d58-b7b3-54e53387a0a2","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":18,"box":{"x":68,"y":521,"width":820,"height":11}},{"id":"ec4fa9a9-3cea-4dcf-9845-920b43e48eb6","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":18,"box":{"x":68,"y":536,"width":823,"height":11}},{"id":"1525d553-c92b-4844-bf54-73785664e801","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":18,"box":{"x":69,"y":551,"width":830,"height":11}},{"id":"13694f0e-679c-4133-aee4-ce6c4157380c","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":18,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"ef87a316-8962-4691-8c2a-3c122663bde5","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":18,"box":{"x":70,"y":581,"width":807,"height":12}},{"id":"9ee0c8a0-f00e-43b4-8d03-0c02d59a44c9","block_type":"box","text":"fees for the Fund; (3) review the conduct and results of each independent audit of the Fund’s annual financial","page_number":18,"box":{"x":68,"y":596,"width":781,"height":11}},{"id":"b8c8f4d7-d009-4a9d-b16b-7810ab0b01f6","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":18,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"e095e9cd-59d6-44a5-b2f1-a32e7f722207","block_type":"box","text":"regarding the accounting or financial repor ting policies and practices of the Fund and the internal controls of the Fund","page_number":18,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"f2dfee4f-ccf5-40e5-9189-b4eafa909c2b","block_type":"box","text":"and cer tain service providers; (5) oversee the per formance of the Fund’s Independent Registered Public Accounting","page_number":18,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"7d720335-b9be-4d4a-a135-68c44c9f1248","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":18,"box":{"x":70,"y":657,"width":809,"height":11}},{"id":"3ceffaad-5c02-4b0e-a9cc-686b50b41fae","block_type":"box","text":"per formance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":18,"box":{"x":70,"y":672,"width":815,"height":11}},{"id":"108caa23-a0ca-459b-bafd-df2d0285caec","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial repor ting and controls;","page_number":18,"box":{"x":69,"y":687,"width":774,"height":11}},{"id":"1825f34c-fd4b-4f53-b8c4-fea848f5b038","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":18,"box":{"x":69,"y":702,"width":815,"height":12}},{"id":"a1b40b59-946e-4532-9ef9-3789ee282a4a","block_type":"box","text":"regarding financial repor ting; and (9) under take such other duties and responsibilities as may from time to time be","page_number":18,"box":{"x":69,"y":717,"width":819,"height":12}},{"id":"71fdec6c-d1fb-46d6-ba35-d199024319b4","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written char ter for the Audit Committee.","page_number":18,"box":{"x":69,"y":732,"width":812,"height":12}},{"id":"b52eb740-ef03-4dbd-a359-11529efc611e","block_type":"box","text":"During the twelve months ended May 31, 2026, the Audit Committee met four times.","page_number":18,"box":{"x":70,"y":748,"width":605,"height":11}},{"id":"aa6511c3-61c3-43b7-a63f-e8454bf471ea","block_type":"box","text":"Governance and Nominating Committee.","page_number":18,"box":{"x":102,"y":770,"width":286,"height":12}},{"id":"97ccc1a8-1fd2-4520-84e8-209bffeb89bd","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":18,"box":{"x":394,"y":770,"width":464,"height":12}},{"id":"bc83dda6-15d9-4b55-9bcc-67ea4e8044b4","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton,","page_number":18,"box":{"x":70,"y":786,"width":838,"height":11}},{"id":"dd039ba0-9621-4da4-829f-8fb6c9f6a891","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":801,"width":784,"height":11}},{"id":"fee9fc77-389d-4ff1-8bee-9ee3bb6134e0","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":816,"width":803,"height":11}},{"id":"1cc2399a-d61d-400c-99cf-8db397c3e276","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":831,"width":829,"height":11}},{"id":"bf46b49a-3108-4fa8-8a43-0db01fcab579","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":846,"width":828,"height":11}},{"id":"e1f0770b-52c8-4fd1-b7e3-85a5b6eb7eea","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":861,"width":809,"height":11}},{"id":"e19c9979-8385-4dc8-beb9-2e6449ec9883","block_type":"box","text":"and make recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters","page_number":18,"box":{"x":69,"y":876,"width":838,"height":11}},{"id":"9a911bc6-1efe-40ef-8d7b-67e431b671b1","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":891,"width":800,"height":11}},{"id":"aca4afab-d9bb-40bf-8c75-3cebe2766d78","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":906,"width":813,"height":11}},{"id":"858c9179-593d-4ed7-b76f-0707594c9af2","block_type":"box","text":"I-9","page_number":18,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"3d91f862-4eec-4544-8431-f179ea960de0","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":18,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c72f7a16-cef3-4d1e-9de7-a69239f37e37","block_type":"box","text":"ethics as they relate to Independent Trustees; and (7) under take such other duties and responsibilities as may from","page_number":19,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"39091236-9677-4eb9-b7e9-7d06ca35f6a4","block_type":"box","text":"time to time be delegated by the Board to the Governance Committee. The Governance Committee may consider","page_number":19,"box":{"x":68,"y":60,"width":804,"height":11}},{"id":"718d6cc1-a0ae-429f-982f-2b70b77c3f16","block_type":"box","text":"nominations for Trustees made by the Fund’s shareholders as it deems appropriate. Under the Trust’s Amended and","page_number":19,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"3e246926-4c16-4dba-9adf-62dcdd9bdcdc","block_type":"box","text":"Restated Code of Regulations (“Bylaws”), shareholders must follow cer tain procedures to nominate a person for","page_number":19,"box":{"x":70,"y":90,"width":801,"height":11}},{"id":"2ce9162f-09f7-4894-bb53-030492913dd9","block_type":"box","text":"election as a Trustee at a shareholder meeting at which Trustees are to be elected. Under these advance notice","page_number":19,"box":{"x":69,"y":105,"width":799,"height":11}},{"id":"8188bb77-9556-48f2-9619-ec39716011d5","block_type":"box","text":"procedures, notice of the proposed nominee to the Secretary of the Trust must be delivered to or mailed and","page_number":19,"box":{"x":70,"y":120,"width":776,"height":11}},{"id":"e50221bb-f907-412f-9611-998dc9eb7adf","block_type":"box","text":"received at the principal executive offices of the Trust not later than the close of business on the fifth day following","page_number":19,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"572747f2-488d-45d4-86e9-664a46c0df90","block_type":"box","text":"the day on which notice of the date of the meeting was mailed or public disclosure of the date of the meeting was","page_number":19,"box":{"x":68,"y":150,"width":812,"height":12}},{"id":"ab278b6f-0b31-4364-ae8a-0954cb657b31","block_type":"box","text":"made, whichever first occurs. The Trust’s Bylaws provide that notice of a proposed nomination must include cer tain","page_number":19,"box":{"x":69,"y":166,"width":823,"height":11}},{"id":"52883d63-870e-4b69-9da3-5f47392ce810","block_type":"box","text":"information about the shareholder and the nominee, as well as cer tain other information, including a written consent","page_number":19,"box":{"x":70,"y":181,"width":832,"height":11}},{"id":"d25abee7-3e7e-413f-9d94-1183deaf4ad0","block_type":"box","text":"of the proposed nominee to serve if elected. Reference is made to the Trust’s Bylaws for more details. The Board","page_number":19,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"93b96b4d-87c0-4949-9ccf-25a01138ff31","block_type":"box","text":"has adopted a written char ter for the Governance Committee. During the twelve months ended May 31, 2026, the","page_number":19,"box":{"x":69,"y":211,"width":813,"height":11}},{"id":"f8e3b01b-dbff-4057-8874-d4e288e6125e","block_type":"box","text":"Governance Committee met ten times.","page_number":19,"box":{"x":69,"y":226,"width":274,"height":9}},{"id":"1f7f3efc-f46f-4688-81cc-ec2f646601ad","block_type":"box","text":"Compliance Committee.","page_number":19,"box":{"x":102,"y":249,"width":168,"height":11}},{"id":"21b8fe3a-3a11-41ac-b5ee-d7d022aa5b05","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":19,"box":{"x":276,"y":249,"width":629,"height":11}},{"id":"21bf2ba3-7ff8-479c-99a0-13750679fc11","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":19,"box":{"x":68,"y":264,"width":828,"height":11}},{"id":"0d164026-1972-4d8f-a6eb-7d3c64db8bfc","block_type":"box","text":"whom are Independent Trustees. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":19,"box":{"x":68,"y":279,"width":771,"height":11}},{"id":"0ee35060-1af7-4288-bd11-0c7f60351d1f","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Trust, the fund-related activities of","page_number":19,"box":{"x":69,"y":294,"width":835,"height":11}},{"id":"1da28b24-1aaf-4859-b4e6-b0332684a652","block_type":"box","text":"BlackRock and any sub-adviser and the Trust’s third-par ty service providers. The Compliance Committee’s","page_number":19,"box":{"x":70,"y":309,"width":754,"height":11}},{"id":"9300239a-7894-45f6-83de-e05204992230","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Trust and its","page_number":19,"box":{"x":69,"y":324,"width":834,"height":11}},{"id":"97114d0d-cf49-4fae-bb29-e5be48a0ade2","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":19,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"20410de2-a16c-4240-8861-8d00ae99112b","block_type":"box","text":"and, where appropriate, recommend policies concerning the Trust’s compliance with applicable law; (3) review","page_number":19,"box":{"x":69,"y":355,"width":785,"height":11}},{"id":"744c355f-329e-4097-94cf-b48e7fb44151","block_type":"box","text":"repor ts from, oversee the annual per formance review of, and make cer tain recommendations and determinations","page_number":19,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"d863d28c-e933-4950-af3a-2fd46b445e60","block_type":"box","text":"regarding the Trust’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":19,"box":{"x":69,"y":385,"width":812,"height":11}},{"id":"7ab46121-7d1c-4291-8822-bb3ed0f2b02f","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":19,"box":{"x":69,"y":400,"width":812,"height":11}},{"id":"0aa7db51-2a5a-44c8-83a2-437a4f150ad8","block_type":"box","text":"and (4) under take such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":19,"box":{"x":69,"y":415,"width":825,"height":11}},{"id":"9e45e4b9-0b7d-4e7d-aeb0-4c58258a19a9","block_type":"box","text":"Compliance Committee. The Board has adopted a written char ter for the Compliance Committee. During the twelve","page_number":19,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"04b97cc0-9460-4711-9e5f-3688467a5458","block_type":"box","text":"months ended May 31, 2026, the Compliance Committee met four times.","page_number":19,"box":{"x":69,"y":445,"width":525,"height":11}},{"id":"5b528282-6d9f-4517-ad50-f98bbc9711d4","block_type":"box","text":"Per formance Oversight Committee.","page_number":19,"box":{"x":102,"y":468,"width":248,"height":11}},{"id":"c1465404-9408-41c5-a53a-416ba8bb12ad","block_type":"box","text":"The members of the Per formance Oversight Committee (the “Per formance","page_number":19,"box":{"x":356,"y":468,"width":531,"height":11}},{"id":"42a21c01-bb58-4d21-8f63-51398c886bed","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton, Neil A.","page_number":19,"box":{"x":69,"y":483,"width":829,"height":11}},{"id":"7735870a-98cb-4d25-a762-271d11389a5b","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Trustees. The Per formance Oversight Committee’s purpose is","page_number":19,"box":{"x":69,"y":498,"width":830,"height":11}},{"id":"c70258b6-7506-4e79-adbd-a2c844996287","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to its agreed","page_number":19,"box":{"x":68,"y":513,"width":832,"height":12}},{"id":"b35d6ca8-eb08-4256-9c36-d490743d6dfa","block_type":"box","text":"upon per formance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":19,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"1d7cebfc-7c4f-41f5-8588-1cdad85494cc","block_type":"box","text":"agreements. The Per formance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":19,"box":{"x":69,"y":543,"width":782,"height":12}},{"id":"89fff0e7-e9ba-4aea-84d9-847bf5129529","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":19,"box":{"x":70,"y":559,"width":829,"height":11}},{"id":"1cea10d7-f830-48a8-b227-0aaa59d4a28a","block_type":"box","text":"and practices; (2) review information on the Fund’s investment per formance; (3) review information on appropriate","page_number":19,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"687a28e9-a8f0-45ac-a3d2-13adef8fa00d","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":19,"box":{"x":69,"y":589,"width":803,"height":11}},{"id":"f6ad5c2c-84c4-4023-8064-44a20fa97c89","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":19,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"58b19b4d-1f68-4c7c-bef0-4e7787143142","block_type":"box","text":"the Per formance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":19,"box":{"x":68,"y":619,"width":811,"height":11}},{"id":"38492e72-1065-482f-94c3-cc63bf86bc2a","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":19,"box":{"x":69,"y":634,"width":757,"height":12}},{"id":"a4b91d61-9e42-49b2-ae92-c9561cc79317","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":19,"box":{"x":70,"y":649,"width":835,"height":12}},{"id":"0e5dad05-0eaa-4da4-a8b0-336437d6a9b5","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) under take such other","page_number":19,"box":{"x":68,"y":664,"width":800,"height":12}},{"id":"67667bd8-3cd6-45df-8579-e40f14eed898","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Per formance Oversight","page_number":19,"box":{"x":69,"y":680,"width":780,"height":11}},{"id":"458ceeb2-11f7-4e5a-8fbb-46358d1d1243","block_type":"box","text":"Committee. The Board has adopted a written char ter for the Per formance Oversight Committee. During the twelve","page_number":19,"box":{"x":69,"y":695,"width":810,"height":11}},{"id":"c54c62d9-b1b5-4dc3-b90b-15336748d547","block_type":"box","text":"months ended May 31, 2026, the Per formance Oversight Committee met five times.","page_number":19,"box":{"x":69,"y":710,"width":602,"height":11}},{"id":"aed46630-23c1-496f-803e-feca69a8d793","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":19,"box":{"x":101,"y":733,"width":186,"height":10}},{"id":"da6fea13-1478-4f51-b4b3-aeb3df52d975","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":19,"box":{"x":293,"y":732,"width":598,"height":12}},{"id":"ed0b7f47-4607-4d53-b78d-54da232cb8c5","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":19,"box":{"x":70,"y":748,"width":817,"height":11}},{"id":"aa71dfc0-5f13-424f-84a5-8cec560a0b30","block_type":"box","text":"serves as an interested Trustee. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":19,"box":{"x":69,"y":763,"width":795,"height":11}},{"id":"3c809200-3900-4642-bc85-04565edb37df","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":19,"box":{"x":69,"y":778,"width":788,"height":11}},{"id":"cd708813-cd75-4c39-acfa-a246e35032a5","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":793,"width":813,"height":11}},{"id":"c10d8c6b-9914-46b1-8316-15f541ad92e7","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written char ter for the Ad Hoc Topics Committee. During","page_number":19,"box":{"x":68,"y":808,"width":816,"height":11}},{"id":"ebe0b00d-2608-43bd-b550-a3d648c03fc4","block_type":"box","text":"the twelve months ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":19,"box":{"x":68,"y":823,"width":606,"height":11}},{"id":"9e046359-1d04-4247-b38b-16b3c9b32a0a","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":846,"width":771,"height":11}},{"id":"5afe09e3-97d6-447f-8246-0b5f8afd46fd","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":861,"width":827,"height":11}},{"id":"17eb057a-2e62-453b-8798-09b1d9255a0e","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":876,"width":830,"height":11}},{"id":"969f7652-2f6c-4ec7-9334-901fd94f98de","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Fur thermore,","page_number":19,"box":{"x":69,"y":891,"width":825,"height":11}},{"id":"88525cd6-5286-4fdf-981c-f87930bcf282","block_type":"box","text":"in determining that a par ticular Independent Trustee was and continues to be qualified to serve as a Trustee, the","page_number":19,"box":{"x":70,"y":906,"width":807,"height":12}},{"id":"21b5ab3b-7f1c-4e32-b510-4d88da375840","block_type":"box","text":"I-10","page_number":19,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"46f915f6-c7f0-417e-b57f-fa4e07f9ffff","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":19,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d0789ee5-1573-4900-99c7-5577eef3ce3d","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":20,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"3212a7c6-3ac5-48c4-8ec1-3798f9d250d1","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":20,"box":{"x":69,"y":60,"width":805,"height":11}},{"id":"d47bcce3-db15-4041-a388-f406afc72697","block_type":"box","text":"which allow the Board to operate effectively in governing the Trust and protecting the interests of shareholders.","page_number":20,"box":{"x":68,"y":75,"width":794,"height":11}},{"id":"72156e25-617e-4e6f-aaf3-1121108c7ef3","block_type":"box","text":"Among the attributes common to all Independent Trustees are their ability to review critically, evaluate, question and","page_number":20,"box":{"x":68,"y":90,"width":829,"height":11}},{"id":"ec9d7514-bea2-49f5-a4e9-ee422e67e436","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":20,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"0d4e9685-86f1-4fa7-85a7-830647f37356","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":20,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"796576d4-1a15-4e33-8156-09631ff90438","block_type":"box","text":"business judgment in the per formance of their duties as Trustees.","page_number":20,"box":{"x":69,"y":135,"width":473,"height":12}},{"id":"e2a4b048-b70c-4fbe-b0a2-18fb7d94c0e4","block_type":"box","text":"Each Trustee’s ability to per form his or her duties effectively is evidenced by his or her educational background","page_number":20,"box":{"x":102,"y":158,"width":792,"height":11}},{"id":"3927de20-3970-47c6-947f-33082c9d3f41","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":20,"box":{"x":69,"y":173,"width":807,"height":11}},{"id":"1a9fa57e-2631-4e56-bdd3-7c3377a5c4d8","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":20,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"87de04df-c012-4848-866b-bc8c388453ce","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":20,"box":{"x":70,"y":203,"width":759,"height":12}},{"id":"1874022e-ebff-40e2-87b5-7f5ad22069e2","block_type":"box","text":"par ticipation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":20,"box":{"x":70,"y":218,"width":685,"height":12}},{"id":"fe04a7d8-8c38-4e98-9e0c-798d925d17da","block_type":"box","text":"ad hoc","page_number":20,"box":{"x":762,"y":219,"width":47,"height":8}},{"id":"1a2144f1-fdab-4ce3-9a1e-771b7e3d4a19","block_type":"box","text":"committees","page_number":20,"box":{"x":814,"y":219,"width":82,"height":8}},{"id":"3238a5de-7fcd-449d-8675-b6f5cb02db76","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":20,"box":{"x":68,"y":234,"width":395,"height":11}},{"id":"3ded26f3-f31e-4b15-95a8-c9b06f6b5d72","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":20,"box":{"x":101,"y":256,"width":751,"height":11}},{"id":"bb88d026-4aa8-40eb-b117-25c43c653902","block_type":"box","text":"suppor t the conclusion that each Trustee should serve on the Board.","page_number":20,"box":{"x":69,"y":272,"width":492,"height":10}},{"id":"53fa56d7-bce4-47c0-8f61-48b664a997bf","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":20,"box":{"x":68,"y":300,"width":409,"height":8}},{"id":"8cf003b3-6600-45ab-8247-f927047203c1","block_type":"box","text":"Independent Trustees","page_number":20,"box":{"x":70,"y":316,"width":154,"height":11}},{"id":"cbeadf01-7dda-45c5-8516-0fe2ea8671a8","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":20,"box":{"x":69,"y":331,"width":781,"height":11}},{"id":"115c7cce-b365-45f8-a4f8-bc3d2f6f698e","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":20,"box":{"x":265,"y":346,"width":604,"height":12}},{"id":"06c308e8-ff35-4946-b0d3-3a4a67ebe081","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":20,"box":{"x":265,"y":361,"width":623,"height":12}},{"id":"ed002c52-8edb-493c-aa77-549c0b0409f1","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":20,"box":{"x":265,"y":377,"width":637,"height":11}},{"id":"ac0e6dab-b60b-4a75-830e-f8a6cf64abc9","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":20,"box":{"x":265,"y":392,"width":631,"height":11}},{"id":"196298f3-9437-434a-af2f-a78cb2138a3e","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the Nor th American","page_number":20,"box":{"x":264,"y":407,"width":626,"height":10}},{"id":"e5d6c438-33dc-4063-be17-e41a9552ad80","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":20,"box":{"x":265,"y":422,"width":639,"height":11}},{"id":"35d8556c-42ba-4b01-9de7-17520207758f","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":20,"box":{"x":264,"y":437,"width":637,"height":11}},{"id":"31e79c1e-aaf0-4bdb-be5d-21cd89a2e8fe","block_type":"box","text":"exper tise across asset classes and strategies, and insight and perspective on the","page_number":20,"box":{"x":265,"y":452,"width":586,"height":11}},{"id":"c6f92218-059d-474f-aab1-7b369c9f0f49","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":20,"box":{"x":265,"y":467,"width":640,"height":11}},{"id":"2fbec92e-16a5-459f-9b4a-38f924ecc0ee","block_type":"box","text":"Committee and the Per formance Oversight Committee.","page_number":20,"box":{"x":265,"y":482,"width":389,"height":12}},{"id":"c5ce5a45-e00a-4929-9cb4-ec34b0fafb4b","block_type":"box","text":"Susan J. Car ter Susan J. Car ter has over 35 years of experience in investment management. She has","page_number":20,"box":{"x":69,"y":505,"width":806,"height":11}},{"id":"573827df-0d28-4495-9673-4107ae55ee0c","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":20,"box":{"x":265,"y":520,"width":604,"height":11}},{"id":"8850443b-5b2b-48d5-a3bf-3a373c466ab0","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":20,"box":{"x":265,"y":535,"width":632,"height":12}},{"id":"d21e8c7f-3437-4420-99f0-500678b11162","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":20,"box":{"x":265,"y":550,"width":562,"height":9}},{"id":"1850865f-581e-40bb-91ed-19fd393ab80c","block_type":"box","text":"Ms. Car ter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":20,"box":{"x":265,"y":566,"width":616,"height":10}},{"id":"11070ce4-1352-41b4-a977-b43d9b36924c","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":20,"box":{"x":264,"y":581,"width":591,"height":11}},{"id":"120c28f4-4b5d-4fbe-aac9-f6a37762ef3a","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":20,"box":{"x":265,"y":596,"width":641,"height":11}},{"id":"6a0fe97f-7446-447d-81d0-c1c3e2853914","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":20,"box":{"x":264,"y":611,"width":638,"height":11}},{"id":"fcfde8b7-f3f2-4073-90a3-dcb10ac1430e","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":20,"box":{"x":265,"y":626,"width":584,"height":11}},{"id":"2a31f452-fd96-4426-9c16-ded4f48b551f","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":20,"box":{"x":265,"y":641,"width":630,"height":11}},{"id":"4ff9dfd4-b3b8-4a72-96c4-c151cee71ca8","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. 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Prior to working at Fidelity, Mr. Jarczyk was a","page_number":21,"box":{"x":265,"y":111,"width":607,"height":11}},{"id":"389e6429-2ece-451d-8cf7-267ba846a2ff","block_type":"box","text":"par tner at Deloitte and Ar thur Andersen for approximately 17 years. 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Mr. Jarczyk has been determined by the Audit Committee to be an","page_number":21,"box":{"x":265,"y":186,"width":625,"height":12}},{"id":"389ef1f9-11ef-4de0-bea9-9bd5ebe39549","block_type":"box","text":"audit committee financial exper t, as such term is defined in the applicable Commission","page_number":21,"box":{"x":265,"y":201,"width":623,"height":11}},{"id":"c712a5ad-aa98-4ea0-8475-09f430c0a6ef","block_type":"box","text":"rules.","page_number":21,"box":{"x":265,"y":217,"width":38,"height":9}},{"id":"0fa85775-b69f-4e72-b3cf-4fdccf1cf433","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":21,"box":{"x":70,"y":239,"width":806,"height":12}},{"id":"72c54f17-5cc7-4d2e-af67-4613d0500378","block_type":"box","text":"global exper tise gained through his 35 year career at KPMG, a global professional","page_number":21,"box":{"x":264,"y":254,"width":584,"height":12}},{"id":"707f0b03-3c4c-4be9-995c-1275efe50573","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":21,"box":{"x":265,"y":270,"width":622,"height":11}},{"id":"6f486fe8-8bb1-4c6e-8884-728d497383cc","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":21,"box":{"x":265,"y":285,"width":638,"height":11}},{"id":"adbe9b79-d666-467e-8008-19843daef919","block_type":"box","text":"and exper tise in financial repor ting, accounting, auditing, risk management, and","page_number":21,"box":{"x":265,"y":300,"width":570,"height":11}},{"id":"2d1f07a9-79a4-46a9-9de6-1fd89bad19be","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":21,"box":{"x":265,"y":315,"width":642,"height":11}},{"id":"cb38e3a3-e7b4-419e-a032-8cade8174c85","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":21,"box":{"x":265,"y":330,"width":626,"height":11}},{"id":"8ba57312-b4ce-408a-8b58-2aaa2b7db02a","block_type":"box","text":"industries including professional services, proper ty and casualty reinsurance, insurance,","page_number":21,"box":{"x":265,"y":345,"width":630,"height":11}},{"id":"5bee4149-5558-4de0-af19-168c3d0d0f5a","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":21,"box":{"x":265,"y":360,"width":602,"height":12}},{"id":"2bbef5d1-023c-4b51-996a-1b5da9eaa490","block_type":"box","text":"technology. Mr. Keizer is a cer tified public accountant and also served on the board of the","page_number":21,"box":{"x":264,"y":375,"width":643,"height":12}},{"id":"506ca958-3777-42c3-81c5-ac45bf543ef5","block_type":"box","text":"American Institute of Cer tified Public Accountants. Mr. Keizer has been determined by the","page_number":21,"box":{"x":264,"y":390,"width":639,"height":12}},{"id":"5dcea3be-90f0-450a-8864-7730492ef702","block_type":"box","text":"Audit Committee to be an audit committee financial exper t, as such term is defined in the","page_number":21,"box":{"x":264,"y":406,"width":641,"height":11}},{"id":"e9431ef4-54a5-46a2-b2c5-2d2a0b26fa69","block_type":"box","text":"applicable Commission rules.","page_number":21,"box":{"x":265,"y":421,"width":208,"height":11}},{"id":"3750ac88-7f6c-4c34-8b04-abd2f32938ec","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":21,"box":{"x":69,"y":443,"width":769,"height":12}},{"id":"bb0ad514-abb2-4c88-b5a3-1cd978b77e72","block_type":"box","text":"investment companies, most recently as a member of the boards of cer tain BlackRock","page_number":21,"box":{"x":265,"y":458,"width":621,"height":12}},{"id":"d672085a-e9bb-4a96-8a65-0c39d7616d1c","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":21,"box":{"x":265,"y":474,"width":599,"height":11}},{"id":"75736f13-709f-414e-bbc9-72f66b1943e4","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":21,"box":{"x":265,"y":489,"width":641,"height":11}},{"id":"06e57e49-20ed-4f79-bce2-cd5855cac175","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":21,"box":{"x":264,"y":504,"width":602,"height":11}},{"id":"4e5a7565-1d6b-4ab1-afee-2612d567ed93","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":21,"box":{"x":264,"y":519,"width":617,"height":11}},{"id":"ea53f16e-1f58-453e-aa62-ffd448411372","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":21,"box":{"x":265,"y":534,"width":629,"height":11}},{"id":"a1f8ab07-5269-41a1-acee-cf3eddd01a45","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":21,"box":{"x":264,"y":549,"width":628,"height":11}},{"id":"bc907ca5-d2ad-4f8b-8a37-c35186a6af22","block_type":"box","text":"ar ticles and books on these topics.","page_number":21,"box":{"x":265,"y":565,"width":251,"height":10}},{"id":"bcb30616-417d-4159-bb92-b2b883e128d7","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":21,"box":{"x":70,"y":587,"width":764,"height":11}},{"id":"5025a6b1-d907-4618-91ba-231a5134b220","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":21,"box":{"x":265,"y":602,"width":642,"height":11}},{"id":"e26ff3d3-6a0d-47cc-a373-e82e2acd8da6","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a par tner,","page_number":21,"box":{"x":264,"y":617,"width":593,"height":12}},{"id":"44fe0c66-d708-4cdd-87b2-31d2c4157ff3","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":21,"box":{"x":265,"y":632,"width":603,"height":12}},{"id":"93195526-8bfd-4d76-b6c8-13e13e6593b7","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":21,"box":{"x":265,"y":647,"width":629,"height":12}},{"id":"c66e0059-7970-40e8-85ef-cd8a321a3695","block_type":"box","text":"I-12","page_number":21,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"056d9d5a-d60a-44f3-84fe-5223730f437c","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":21,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3dff5494-5365-4ccf-83a1-6df4885666b4","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":22,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"a7720afe-1662-4faf-b4dc-109f0767f070","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":22,"box":{"x":70,"y":65,"width":804,"height":12}},{"id":"77edc75c-8fe4-4ee4-8ba5-e2bcb686a6c2","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":22,"box":{"x":265,"y":81,"width":552,"height":11}},{"id":"67dcc24f-86e0-46da-b4a5-d239b5b70517","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":22,"box":{"x":265,"y":96,"width":636,"height":11}},{"id":"b6fc06e9-fd8c-415e-a37b-ba846aab14a4","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":22,"box":{"x":265,"y":111,"width":639,"height":11}},{"id":"3ec04f30-10a3-42de-b7ef-ae3ab6ba6284","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":22,"box":{"x":265,"y":126,"width":576,"height":11}},{"id":"e18879c5-c5ef-4136-bd53-2f1105278fca","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":22,"box":{"x":265,"y":141,"width":626,"height":11}},{"id":"6283227e-0dc4-4291-818f-5872959f1e09","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":22,"box":{"x":265,"y":156,"width":592,"height":11}},{"id":"7dde0336-945e-4989-b886-e3dbdf685e0a","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Ar thur","page_number":22,"box":{"x":265,"y":171,"width":629,"height":12}},{"id":"746de811-d345-475b-b79e-72f815c336f1","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":22,"box":{"x":265,"y":186,"width":626,"height":12}},{"id":"de3fb756-a4a4-4898-b878-9837fd06b4ae","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":22,"box":{"x":264,"y":201,"width":608,"height":12}},{"id":"b5cf8458-a194-4c04-8f8c-1f40490198d8","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":22,"box":{"x":265,"y":217,"width":575,"height":11}},{"id":"149071e2-b2b7-4877-98dd-3ab1064486df","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":22,"box":{"x":264,"y":232,"width":591,"height":11}},{"id":"adb67d7b-a162-4313-93f1-b0c0710d778c","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":22,"box":{"x":265,"y":247,"width":627,"height":11}},{"id":"74600efd-8767-4a42-97d6-b33d3b9c185b","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":22,"box":{"x":265,"y":262,"width":578,"height":11}},{"id":"bcea3509-4243-4f4f-87de-b5a48e1ef0f1","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":22,"box":{"x":265,"y":277,"width":607,"height":11}},{"id":"e68e3d1d-2b9a-44e9-8118-7ff4348d6bb4","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":22,"box":{"x":265,"y":292,"width":615,"height":11}},{"id":"f3a7564b-22a3-47ac-ad31-5fd4d23fcd74","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":22,"box":{"x":265,"y":307,"width":638,"height":12}},{"id":"f3ed08b5-efd3-4682-b7a0-cb67c707551b","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":22,"box":{"x":265,"y":322,"width":635,"height":12}},{"id":"5e738fbd-50bf-478a-b1d0-11486d47579e","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":22,"box":{"x":265,"y":338,"width":642,"height":11}},{"id":"46902aca-878f-4b79-8ea4-a4a4bb833f69","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":22,"box":{"x":265,"y":353,"width":627,"height":11}},{"id":"ea151849-c64a-425f-bc11-896a2344ec31","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":22,"box":{"x":265,"y":368,"width":628,"height":11}},{"id":"8c4bd526-f4b2-40bd-957c-e0fa1cd43e51","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":22,"box":{"x":265,"y":383,"width":460,"height":11}},{"id":"3172dfd8-9bc3-460f-9e2c-00ffcc8d046c","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":22,"box":{"x":70,"y":406,"width":818,"height":11}},{"id":"fb57ff5a-17b8-444a-a4f0-74bf6c7976ad","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":22,"box":{"x":264,"y":421,"width":603,"height":11}},{"id":"5a4f7355-3ac9-4e05-b744-3db33a0a91b5","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":22,"box":{"x":265,"y":436,"width":606,"height":11}},{"id":"2f9ef76a-4595-4dcc-adc2-055e94948afc","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":22,"box":{"x":265,"y":451,"width":608,"height":9}},{"id":"a969f65e-c0fa-4667-a83c-f37270ba5619","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":22,"box":{"x":265,"y":466,"width":626,"height":11}},{"id":"d316e384-7834-418a-b90f-7ab186c162d1","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":22,"box":{"x":265,"y":481,"width":591,"height":11}},{"id":"93d36904-75f3-4be3-a4ad-436a914fba30","block_type":"box","text":"various private and non-profit boards.","page_number":22,"box":{"x":264,"y":496,"width":265,"height":11}},{"id":"13d45884-acf5-488d-a5c4-663656c4b4cf","block_type":"box","text":"Marc D. Stern Marc D. 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Management, Advisory and Other Service Arrangements","page_number":29,"box":{"x":69,"y":256,"width":432,"height":11}},{"id":"f66f2158-ba31-4f05-8b76-103b10f459d5","block_type":"box","text":"Management Agreement","page_number":29,"box":{"x":69,"y":286,"width":180,"height":11}},{"id":"5b17c9e0-f267-4be0-8d12-09aa0f7a2da0","block_type":"box","text":"The Trust, on behalf of the Fund, has entered into an investment advisory agreement with BlackRock pursuant to","page_number":29,"box":{"x":101,"y":309,"width":805,"height":11}},{"id":"c03ffbe8-df3a-4a44-acba-3e17fdccdf3a","block_type":"box","text":"which BlackRock is entitled to fees for the services it provides (the “Management Agreement”).","page_number":29,"box":{"x":68,"y":324,"width":680,"height":11}},{"id":"8195a582-a3d6-4ed5-9633-157f6200e76c","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any por tion of the Fund’s","page_number":29,"box":{"x":102,"y":346,"width":762,"height":12}},{"id":"6d01c859-84b4-4865-bafe-7ca067fb9cb8","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":361,"width":799,"height":12}},{"id":"ad7dce79-9481-4119-85cf-6d4b05bfa4c8","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":377,"width":726,"height":11}},{"id":"0c0b6562-9a93-434f-9963-6bec85c2babe","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":392,"width":797,"height":11}},{"id":"d1f2a396-e759-404f-917d-8411b3b0ac68","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":407,"width":789,"height":11}},{"id":"bbc37c20-6e9c-4ee7-83cd-bad0e294f99b","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":422,"width":810,"height":11}},{"id":"9937a68b-2a17-4fbf-95e8-85e9221625f2","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":437,"width":827,"height":11}},{"id":"55f80c18-a3a7-4609-9dd2-7fe5d98c6a1d","block_type":"box","text":"Fund.","page_number":29,"box":{"x":70,"y":452,"width":36,"height":9}},{"id":"5cec784e-6f5a-4e4a-b2e1-e247c3ec8302","block_type":"box","text":"BlackRock has contractually agreed to waive and/or reimburse fees or expenses of the Fund in order to limit","page_number":29,"box":{"x":102,"y":475,"width":773,"height":11}},{"id":"2759c6ed-01ba-4dfb-a1de-48472f255d9f","block_type":"box","text":"Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend","page_number":29,"box":{"x":68,"y":490,"width":787,"height":11}},{"id":"194b29ea-57c9-4e03-b792-fa026a50cfaf","block_type":"box","text":"Expense, Interest Expense, Acquired Fund Fees and Expenses and cer tain other Fund expenses (as defined in the","page_number":29,"box":{"x":70,"y":505,"width":811,"height":11}},{"id":"d780fd55-f6c8-447f-baac-57cf62051cf5","block_type":"box","text":"Fund’s Prospectuses)) as a percentage of average daily net assets to 1.32% for Investor A Shares, 2.04% for","page_number":29,"box":{"x":70,"y":520,"width":779,"height":12}},{"id":"b8027980-04d6-4c64-967f-f36534e70b3d","block_type":"box","text":"Investor C Shares, and 0.91% for Institutional Shares through June 30, 2028. The contractual agreement may be","page_number":29,"box":{"x":70,"y":535,"width":807,"height":12}},{"id":"70be77b0-91a4-4291-a25c-36a99ab65b29","block_type":"box","text":"terminated upon 90 days’ notice by a majority of the Independent Trustees or by a vote of a majority of the","page_number":29,"box":{"x":68,"y":550,"width":761,"height":12}},{"id":"dadfa95b-18cf-45c1-b85f-8a6969393c40","block_type":"box","text":"outstanding voting securities of the Fund.","page_number":29,"box":{"x":69,"y":566,"width":293,"height":11}},{"id":"8a241c18-b29b-4ab2-851d-fa1db68833c2","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":588,"width":784,"height":12}},{"id":"7fd218a2-a2ed-4e65-8723-81c06669c6a7","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":603,"width":838,"height":12}},{"id":"bc769cf2-3383-4e1e-bdc7-524b4823afdb","block_type":"box","text":"per form investment advisory services with respect to the Fund. In addition, BlackRock may delegate cer tain of its","page_number":29,"box":{"x":70,"y":618,"width":810,"height":12}},{"id":"51f6d380-57a2-4433-9a1b-f8685005545f","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":634,"width":779,"height":11}},{"id":"91a34731-8257-4ec7-a4c5-16407c6fab79","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":649,"width":827,"height":11}},{"id":"7bf4a084-2de0-4d78-b191-22ad0cce605f","block_type":"box","text":"sole discretion at any time to the extent permitted by applicable law.","page_number":29,"box":{"x":69,"y":664,"width":486,"height":11}},{"id":"7e5a5d55-1533-4fcd-a47b-9869489c76e1","block_type":"box","text":"BlackRock has entered into a sub-advisory agreement with BlackRock International Limited (the “Sub-Adviser”),","page_number":29,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"96212f7d-9135-4ded-80e2-cf0aab957997","block_type":"box","text":"pursuant to which BlackRock pays the Sub-Adviser for providing services to BlackRock with respect to that por tion of","page_number":29,"box":{"x":70,"y":702,"width":831,"height":11}},{"id":"ebf7e0b2-3cf6-452e-a19f-3f9ff772f130","block_type":"box","text":"the Fund for which it acts as sub-adviser a monthly fee at an annual rate equal to a percentage of the management","page_number":29,"box":{"x":68,"y":717,"width":822,"height":11}},{"id":"52b30fc3-e256-4dba-a8df-4185f65d0f3c","block_type":"box","text":"fee paid to BlackRock under the Management Agreement.","page_number":29,"box":{"x":68,"y":732,"width":411,"height":11}},{"id":"51b6d14b-e554-4318-bc3d-555c7294b570","block_type":"box","text":"The table below sets for th information about the management fees paid by the Trust, on behalf of the Fund, to","page_number":29,"box":{"x":101,"y":755,"width":789,"height":11}},{"id":"5f308a99-4e1f-4dd3-bf8e-c7592f705b5c","block_type":"box","text":"BlackRock (which includes amounts paid by BlackRock to the Sub-Adviser), and the amounts waived, and/or","page_number":29,"box":{"x":70,"y":770,"width":770,"height":11}},{"id":"82444d4c-561f-454a-ad79-2e21a54c73a4","block_type":"box","text":"reimbursed, for the periods shown.","page_number":29,"box":{"x":69,"y":785,"width":248,"height":11}},{"id":"3f76ed44-17f6-4bf4-a8ed-9f38d1aab4b0","block_type":"box","text":"Fees Paid","page_number":29,"box":{"x":598,"y":813,"width":56,"height":7}},{"id":"498eddaa-547e-4511-856a-4edf78560b54","block_type":"box","text":"to BlackRock","page_number":29,"box":{"x":586,"y":823,"width":79,"height":7}},{"id":"2cb249d3-7868-4431-bdd1-e00142bd6aee","block_type":"box","text":"Fees Waived","page_number":29,"box":{"x":704,"y":813,"width":72,"height":7}},{"id":"ab3c2531-a744-4ddd-9634-cf678dfe74bb","block_type":"box","text":"by BlackRock","page_number":29,"box":{"x":700,"y":823,"width":80,"height":9}},{"id":"791e2e9e-2617-4c1f-b50d-150afe0eab59","block_type":"box","text":"Fees Reimbursed","page_number":29,"box":{"x":810,"y":813,"width":99,"height":7}},{"id":"faeb13d5-2c0b-4e36-aef7-76a96770dc67","block_type":"box","text":"by BlackRock","page_number":29,"box":{"x":820,"y":823,"width":80,"height":9}},{"id":"7892415c-11dd-4459-93fd-0bffb8630cf9","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,249,008 $3,144 $151,074","page_number":29,"box":{"x":70,"y":840,"width":825,"height":12}},{"id":"b718961e-56c9-4a63-80e5-c05cbe402f23","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,304,832 $9,967 $103,913","page_number":29,"box":{"x":70,"y":855,"width":825,"height":12}},{"id":"667efe4a-1c77-4b76-a08c-1a7c7614647f","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,614,369 $3,230 $166,955","page_number":29,"box":{"x":70,"y":870,"width":825,"height":12}},{"id":"49c8ff33-ea51-4afd-abf7-0a34bb0af9a0","block_type":"box","text":"I-20","page_number":29,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"708abe1d-8396-45aa-8681-a7d0c8b50ce6","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":29,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6370ef2b-e97b-479b-ae52-02d881c6b20b","block_type":"box","text":"Administration Agreement","page_number":30,"box":{"x":68,"y":45,"width":191,"height":11}},{"id":"b9018f03-c962-4220-86ac-1309d0cbe246","block_type":"box","text":"BlackRock serves as the Fund’s administrator (in such capacity, the “Administrator”) pursuant to an","page_number":30,"box":{"x":102,"y":68,"width":711,"height":10}},{"id":"0b807608-af51-48ad-88b8-ae739e39a068","block_type":"box","text":"administration agreement (the “Administration Agreement”). 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$0","page_number":31,"box":{"x":325,"y":128,"width":554,"height":8}},{"id":"49290188-fb26-40b5-9865-5f26f87b5a07","block_type":"box","text":"Mark Hume 1 20 0 0 2 0","page_number":31,"box":{"x":74,"y":141,"width":801,"height":7}},{"id":"2556067a-a65e-466e-a486-0dd4a7eb1c4c","block_type":"box","text":"$441.16 Million $3.15 Billion $0 $0 $0 $0","page_number":31,"box":{"x":316,"y":153,"width":563,"height":8}},{"id":"c97017ae-55bf-4ccd-9466-258b4553c24b","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":31,"box":{"x":69,"y":188,"width":304,"height":11}},{"id":"553bb810-5562-4a17-b6db-7d5a3ce0e2ef","block_type":"box","text":"The discussion below describes the por tfolio managers’ compensation as of May 31, 2026.","page_number":31,"box":{"x":101,"y":210,"width":656,"height":12}},{"id":"0bbe8eb2-3eb4-468e-a717-73bc23312bf3","block_type":"box","text":"BlackRock’s financial arrangements with its por tfolio managers, its competitive compensation and its career","page_number":31,"box":{"x":102,"y":233,"width":774,"height":11}},{"id":"562e73f9-9fa7-4cf0-ba8f-dcf0b5e5ab36","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":31,"box":{"x":70,"y":248,"width":837,"height":11}},{"id":"ddf1a65e-ccf1-4738-8427-15c45da4b057","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":31,"box":{"x":69,"y":263,"width":823,"height":11}},{"id":"3b4a35d3-a8e0-4969-8712-aece2f85c984","block_type":"box","text":"compensation include a base salary, a per formance-based discretionary bonus, par ticipation in various benefits","page_number":31,"box":{"x":69,"y":278,"width":799,"height":11}},{"id":"98ca66d4-a8d9-4e7b-bbfe-6c9fd392a80d","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":31,"box":{"x":70,"y":293,"width":670,"height":12}},{"id":"81d5a227-774d-4a74-8473-6556a00daedc","block_type":"box","text":"Base Compensation.","page_number":31,"box":{"x":102,"y":316,"width":148,"height":11}},{"id":"22a1fdfe-e3ad-4ca4-a4f9-488a67d53b81","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":31,"box":{"x":257,"y":316,"width":640,"height":11}},{"id":"6967343d-afab-400c-befd-835a4220a0f3","block_type":"box","text":"firm.","page_number":31,"box":{"x":68,"y":331,"width":32,"height":9}},{"id":"9baf56b2-2de6-4a1e-a90c-1f441dcdbfc4","block_type":"box","text":"Discretionary Incentive Compensation","page_number":31,"box":{"x":69,"y":362,"width":277,"height":11}},{"id":"b386faed-14b1-4cea-874b-1ff28ac34258","block_type":"box","text":"Generally, discretionary incentive compensation for Fundamental Equities por tfolio managers is based on a","page_number":31,"box":{"x":102,"y":384,"width":763,"height":11}},{"id":"a2a51493-c9f3-4326-8be1-0e863da3efed","block_type":"box","text":"formulaic compensation program. BlackRock’s formulaic por tfolio manager compensation program is based on team","page_number":31,"box":{"x":68,"y":399,"width":832,"height":12}},{"id":"88d49707-6b5c-4af0-89b2-ec88536d3840","block_type":"box","text":"revenue and pre-tax investment per formance relative to appropriate competitors or benchmarks over 3- and 5-year","page_number":31,"box":{"x":69,"y":414,"width":815,"height":12}},{"id":"c53bef56-0b52-46a5-ab93-8ac5cccda156","block_type":"box","text":"per formance periods, as applicable. In most cases, these benchmarks are the same as the benchmark or","page_number":31,"box":{"x":70,"y":429,"width":757,"height":11}},{"id":"40bf6719-89b3-4007-ae49-42b1b72ba7d9","block_type":"box","text":"benchmarks against which the per formance of the Fund or other accounts managed by the por tfolio managers are","page_number":31,"box":{"x":69,"y":445,"width":814,"height":11}},{"id":"48f7ff57-9a59-4d37-890e-243a3bf7f398","block_type":"box","text":"measured. BlackRock’s global compensation team determines the benchmarks or rankings against which the","page_number":31,"box":{"x":69,"y":460,"width":780,"height":11}},{"id":"63720709-7a8b-4cae-9d23-38e7147d4ae0","block_type":"box","text":"per formance of the Fund and other accounts managed by each por tfolio management team is compared and the","page_number":31,"box":{"x":70,"y":475,"width":802,"height":11}},{"id":"22e51428-97fe-4626-a25e-7ee846d28a4b","block_type":"box","text":"period of time over which per formance is evaluated. With respect to these por tfolio managers such benchmarks for","page_number":31,"box":{"x":70,"y":490,"width":823,"height":11}},{"id":"c9d80818-3937-4a42-ba0d-fe786107a5cb","block_type":"box","text":"the Fund and other accounts are: Bloomberg Commodity Index Total Return; FTSE Gold Mines Index (Gross Total","page_number":31,"box":{"x":68,"y":505,"width":799,"height":11}},{"id":"e10a195d-3201-489c-96e3-aaa74281ecdc","block_type":"box","text":"Return); FTSE Gold Mining Index - expressed in JPY; FTSE Gold Mining Index - GBP Price; SOFR 3 Month Index; MSCI","page_number":31,"box":{"x":70,"y":520,"width":824,"height":12}},{"id":"81787de4-21c2-4a1a-9e8d-d6437c0e2f90","block_type":"box","text":"10/40 DW Energy (Net); MSCI ACWI Metals & Mining 30% Buffer 10/40 (1994) GBP Net TR; MSCI ACWI Metals &","page_number":31,"box":{"x":70,"y":535,"width":814,"height":12}},{"id":"adf22ae1-ee2b-43ac-bf9a-cafdf29f3d13","block_type":"box","text":"Mining 30% Buffer 10/40 (1994) USD Net TR; MSCI World Energy Net Daily TR Index; NYSE Arca Gold Miners Index","page_number":31,"box":{"x":70,"y":550,"width":823,"height":12}},{"id":"211bde1b-8b71-4e90-ac3d-cdda99bdb44d","block_type":"box","text":"EUR Net Total Return; S&P Global Natural Resources Index; S&P Global Natural Resources Index - In GBP; S&P Global","page_number":31,"box":{"x":70,"y":566,"width":838,"height":10}},{"id":"07fc9d40-72d4-4b08-8316-34f8c25c5fb8","block_type":"box","text":"Natural Resources Net Return.","page_number":31,"box":{"x":70,"y":581,"width":216,"height":9}},{"id":"ad90989e-7eb0-4c60-9239-e483a811e795","block_type":"box","text":"A smaller element of por tfolio manager discretionary compensation may include consideration of: financial","page_number":31,"box":{"x":101,"y":603,"width":759,"height":12}},{"id":"ec80bf2e-aca2-42d8-b43b-fc7d023e1ab5","block_type":"box","text":"results, expense control, profit margins, strategic planning and implementation, quality of client service, market","page_number":31,"box":{"x":69,"y":618,"width":798,"height":12}},{"id":"182eb731-de01-41ca-a407-116d83948453","block_type":"box","text":"share, corporate reputation, capital allocation, compliance and risk control, leadership, technology and innovation.","page_number":31,"box":{"x":69,"y":634,"width":814,"height":11}},{"id":"34db4047-4d56-413a-bdb7-2458c0732ce6","block_type":"box","text":"These factors are considered collectively by BlackRock management and the relevant Chief Investment Officers.","page_number":31,"box":{"x":68,"y":649,"width":798,"height":11}},{"id":"933c1658-29ea-406a-ba0b-4fbd80cf42ce","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":31,"box":{"x":102,"y":671,"width":389,"height":12}},{"id":"d58d871b-2963-438e-98a1-004573cd3f1e","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":31,"box":{"x":499,"y":672,"width":383,"height":11}},{"id":"e56c6a81-995d-48a5-b78f-cd096429207a","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":31,"box":{"x":70,"y":686,"width":815,"height":12}},{"id":"c2ba6ac2-98ca-475b-87f1-c9203a3a9526","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":31,"box":{"x":68,"y":702,"width":522,"height":11}},{"id":"07b4eb1e-9e3b-42be-9971-51092b225865","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":31,"box":{"x":102,"y":724,"width":760,"height":12}},{"id":"a9518c1e-de2f-4f08-a2ec-ce365bc08bd5","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":739,"width":795,"height":12}},{"id":"b712cede-fba4-4685-a3bc-f155d5cc8bdb","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":31,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"cc733831-5918-4a47-a010-3c0097526091","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a por tfolio manager for a","page_number":31,"box":{"x":69,"y":770,"width":822,"height":11}},{"id":"5b3d7298-cc5b-492d-827e-a3270caf302c","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its per formance over future periods. In some","page_number":31,"box":{"x":68,"y":785,"width":839,"height":11}},{"id":"a446fb98-44c5-42c9-b7d2-28c9df0b6529","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to cer tain key employees as par t of a long-term","page_number":31,"box":{"x":69,"y":800,"width":802,"height":11}},{"id":"e9d098f8-be90-407a-99e4-e78d896ea46d","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":31,"box":{"x":70,"y":815,"width":820,"height":11}},{"id":"d4f0c532-1619-4e01-8892-e7a0a210f4d6","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":830,"width":801,"height":11}},{"id":"1dee2a2c-5603-4f10-8dad-1c0af256744c","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The por tfolio","page_number":31,"box":{"x":70,"y":845,"width":831,"height":11}},{"id":"2f7ef555-dab0-4d09-81b5-e85ef2568ff4","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":31,"box":{"x":69,"y":860,"width":479,"height":12}},{"id":"0783c677-51d0-4a3a-b204-370c12a39f5f","block_type":"box","text":"For cer tain por tfolio managers, a por tion of the discretionary incentive compensation is also distributed in the","page_number":31,"box":{"x":102,"y":883,"width":785,"height":11}},{"id":"24442103-f3fd-4e83-b337-fff9812a3dc1","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":898,"width":836,"height":11}},{"id":"551c9fa1-dca0-4a58-8e9a-8f2a1a1e790a","block_type":"box","text":"I-22","page_number":31,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"107b8da3-841f-4bc7-a4ac-2da8825bb647","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":31,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bdbd18c3-92ae-4358-9f80-dfc44fb6c0a7","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":32,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"6f7b652e-a779-4591-9c50-f827213a79da","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":32,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"99e93f97-ab64-4725-bbea-4c4ab0199fad","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":32,"box":{"x":70,"y":75,"width":835,"height":11}},{"id":"10c92168-738a-4562-b178-9932b837a98d","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":32,"box":{"x":69,"y":90,"width":414,"height":11}},{"id":"9596ebed-715f-4761-baf5-1a751c5bd6f1","block_type":"box","text":"Other Compensation Benefits.","page_number":32,"box":{"x":101,"y":113,"width":218,"height":11}},{"id":"431a8cf5-94f2-4751-9383-7b013bf6a0f9","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":32,"box":{"x":327,"y":113,"width":552,"height":11}},{"id":"108e8d27-0a03-4078-ac20-fad2a4037a9f","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":32,"box":{"x":69,"y":128,"width":582,"height":11}},{"id":"0ceea569-2afa-4247-8fb2-6ea81b44d1a4","block_type":"box","text":"Incentive Savings Plans —","page_number":32,"box":{"x":102,"y":151,"width":189,"height":11}},{"id":"3945a0ed-92ca-4c91-9262-f9e7aa8ca514","block_type":"box","text":"United Kingdom-based por tfolio managers are also eligible to par ticipate in broad","page_number":32,"box":{"x":296,"y":150,"width":584,"height":12}},{"id":"80f5c840-c2fe-429a-b779-2ded12b17340","block_type":"box","text":"based plans offered generally to BlackRock employees, including broad-based retirement, health and other employee","page_number":32,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"fc7cf719-94bd-46be-acce-59e16793e9dd","block_type":"box","text":"benefit plans. For example, BlackRock has created a variety of incentive savings plans in which BlackRock employees","page_number":32,"box":{"x":69,"y":181,"width":837,"height":11}},{"id":"6af2df38-5d25-401c-aa2a-b80e1381863e","block_type":"box","text":"are eligible to par ticipate, including the BlackRock Retirement Savings Plan (RSP) and the BlackRock Employee Stock","page_number":32,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"9476d118-d47a-4779-8614-1251e79a5b84","block_type":"box","text":"Purchase Plan (ESPP). The employer contribution to the RSP is between 10% and 15% of eligible pay capped at","page_number":32,"box":{"x":69,"y":211,"width":792,"height":11}},{"id":"a3a88c12-1bc3-44c3-ade1-57c10120b02d","block_type":"box","text":"£160,000 per annum. The RSP offers a range of investment options, including several collective investment funds","page_number":32,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"54c2e150-66b5-49fe-b61a-43abec7fd8f0","block_type":"box","text":"managed by the firm. BlackRock contributions follow the investment direction set by par ticipants for their own","page_number":32,"box":{"x":69,"y":241,"width":781,"height":11}},{"id":"3f7dab9a-38f6-4719-a642-69a625d3b757","block_type":"box","text":"contributions or, in the absence of an investment election being made, are invested into a target date fund that","page_number":32,"box":{"x":69,"y":256,"width":794,"height":12}},{"id":"5ff95421-873d-42de-a01b-770f670bb1d2","block_type":"box","text":"corresponds to, or is closest to, the year in which the par ticipant attains age 65. The ESPP allows for investment in","page_number":32,"box":{"x":69,"y":271,"width":823,"height":12}},{"id":"f3042016-42c4-4f77-8497-2c493878205f","block_type":"box","text":"BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual","page_number":32,"box":{"x":70,"y":286,"width":784,"height":11}},{"id":"056b8373-3ce7-4ca4-8a0a-3b7cf16209a5","block_type":"box","text":"par ticipation in the ESPP is limited to the purchase of 1,000 shares of common stock or a US dollar value of","page_number":32,"box":{"x":70,"y":302,"width":776,"height":11}},{"id":"a8dbe61e-7ad1-4adb-a2e1-11040f48b54b","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible por tfolio managers are eligible to","page_number":32,"box":{"x":69,"y":316,"width":808,"height":12}},{"id":"d3b72921-4c4c-4945-b438-21278d0a0d69","block_type":"box","text":"par ticipate in these plans.","page_number":32,"box":{"x":70,"y":332,"width":185,"height":11}},{"id":"27ea9ba0-5b05-4848-9bb4-6eca18c5e47f","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":32,"box":{"x":69,"y":362,"width":268,"height":11}},{"id":"cefe8393-4ad5-4ab3-8c8b-c38b58cb1e23","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":385,"width":731,"height":11}},{"id":"e47abaf0-0fbe-4a70-b84f-61a18b3894ab","block_type":"box","text":"beneficially owned by the por tfolio managers in the Fund is shown below:","page_number":32,"box":{"x":69,"y":400,"width":519,"height":11}},{"id":"7e9cee0c-7478-416f-b676-dae038b69d2b","block_type":"box","text":"Portfolio Manager","page_number":32,"box":{"x":69,"y":438,"width":105,"height":9}},{"id":"7d5c26fc-e5f9-4eb6-a5b4-d21459ce9d77","block_type":"box","text":"Dollar Range of Equity","page_number":32,"box":{"x":759,"y":428,"width":129,"height":9}},{"id":"fa5a0040-9b82-4ee7-9832-2cf60ef0ee2c","block_type":"box","text":"Securities Beneficially Owned","page_number":32,"box":{"x":736,"y":438,"width":173,"height":9}},{"id":"43d37ad3-c0d7-4186-a183-63889b18130f","block_type":"box","text":"Alastair Bishop . . .","page_number":32,"box":{"x":68,"y":456,"width":132,"height":11}},{"id":"80a2ed38-d4cf-48ca-9aa4-6571399b23c8","block_type":"box","text":"..............................................................","page_number":32,"box":{"x":206,"y":463,"width":499,"height":2}},{"id":"d417cdfb-fff4-4d51-a597-5f0678cbf797","block_type":"box","text":"$50,001 - $100,000","page_number":32,"box":{"x":749,"y":455,"width":148,"height":11}},{"id":"80e99b99-d7b1-49e9-9ef1-8710ffbb9cc0","block_type":"box","text":"Mark Hume . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":471,"width":635,"height":9}},{"id":"19a540d4-aef9-47e1-9705-f3f634da6edb","block_type":"box","text":"$10,001 - $50,000","page_number":32,"box":{"x":754,"y":470,"width":138,"height":12}},{"id":"13e06d30-389a-4431-9d9e-5c0580eb1488","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":32,"box":{"x":69,"y":503,"width":403,"height":11}},{"id":"419f100c-35f3-467d-8a64-f1eb565e30b0","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":32,"box":{"x":102,"y":525,"width":727,"height":12}},{"id":"64cac54b-7419-4312-966e-4865dfbbad93","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":540,"width":814,"height":12}},{"id":"c79ca8de-7458-406a-9fe6-acb13799ba7f","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":32,"box":{"x":70,"y":555,"width":837,"height":11}},{"id":"5faa7d7f-de93-46ed-a337-2d23104abade","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":32,"box":{"x":70,"y":571,"width":810,"height":11}},{"id":"e2997b37-5f71-40d8-826e-da125b2e49bc","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":32,"box":{"x":69,"y":586,"width":782,"height":11}},{"id":"8fb5551f-73e2-4bab-98e5-aac1ecae6687","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":601,"width":830,"height":11}},{"id":"14905a19-e21f-4566-bfb7-b690d9ca7709","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":616,"width":828,"height":11}},{"id":"15fc44b3-95e4-4d5e-ae4f-feff1a241d41","block_type":"box","text":"funds or have per formance or higher fees paid to BlackRock, or in which por tfolio managers have a personal interest","page_number":32,"box":{"x":68,"y":631,"width":834,"height":11}},{"id":"4b07fa99-e9c3-4a03-883d-a20ab2ec29df","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":646,"width":777,"height":11}},{"id":"21ca7020-1c26-4596-99f9-bdb227f81d06","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":661,"width":821,"height":12}},{"id":"48a06f63-3062-4c89-a124-19c69d2c7911","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":677,"width":819,"height":10}},{"id":"bf0a342a-c087-43b5-9376-d3cf1a2e99f3","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":692,"width":832,"height":11}},{"id":"0cf33c7d-a7b3-4a54-94f5-3c4dce27e1ec","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":707,"width":804,"height":11}},{"id":"16f4c02a-dffb-4dc0-aec7-65220288aa4a","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":722,"width":760,"height":11}},{"id":"30ed4705-cd18-46ae-a929-12891f284e34","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":737,"width":834,"height":11}},{"id":"2a9db849-d2e6-4cb1-8577-26c783baa17a","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":752,"width":836,"height":11}},{"id":"00b1b4bc-e834-4fce-b9ca-e43bec8e7bc6","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":767,"width":822,"height":11}},{"id":"f41e2ad8-4ee1-47a1-9909-f6c5ab1ed767","block_type":"box","text":"public information. Cer tain por tfolio managers also may manage accounts whose investment strategies may at times","page_number":32,"box":{"x":70,"y":782,"width":835,"height":12}},{"id":"d808f7c8-d471-47b7-8dae-801cfbf717bb","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Messrs. Bishop and Hume may be","page_number":32,"box":{"x":69,"y":797,"width":794,"height":12}},{"id":"28785fc4-d841-4268-b474-dc95080faf63","block_type":"box","text":"managing hedge fund and/or long only accounts, or may be par t of a team managing hedge fund and/or long only","page_number":32,"box":{"x":69,"y":812,"width":811,"height":12}},{"id":"90c5b2cc-caa0-4a8a-8087-dd1c7f843126","block_type":"box","text":"accounts, subject to incentive fees. Messrs. Bishop and Hume may therefore be entitled to receive a por tion of any","page_number":32,"box":{"x":69,"y":828,"width":824,"height":11}},{"id":"0b117d87-4acf-40fc-8460-97df175d56f6","block_type":"box","text":"incentive fees earned on such accounts.","page_number":32,"box":{"x":70,"y":843,"width":286,"height":9}},{"id":"8ab90451-611f-43fb-9061-fd8966f6337e","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":865,"width":788,"height":12}},{"id":"b9306c51-09fa-451e-be39-f805a47ea8e2","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":881,"width":839,"height":11}},{"id":"ce1e00df-ab1b-4979-b875-3b13f7927a7b","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":896,"width":823,"height":11}},{"id":"f57d3de8-2e4d-46b9-b62c-42088ba49d16","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":911,"width":812,"height":11}},{"id":"8e6a8a3a-f4ae-431a-9549-a0f4ce794142","block_type":"box","text":"I-23","page_number":32,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"0f212548-1db6-4a6e-820f-7dd387c53b81","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":32,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c849eb87-2ffe-4e9c-aed0-d871af09fd0f","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":33,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"4f6961a7-7446-4e53-94c0-942888ca6fdb","block_type":"box","text":"investments in a manner that is consistent with the par ticular investment discipline and client base, as appropriate.","page_number":33,"box":{"x":70,"y":60,"width":826,"height":11}},{"id":"23ca40ae-2c77-40d4-a9a5-85a06bc64442","block_type":"box","text":"Accounting Services","page_number":33,"box":{"x":68,"y":90,"width":150,"height":11}},{"id":"d243ccc6-1b3d-4fb7-9142-be7b178888e7","block_type":"box","text":"The Bank of New York Mellon (“BNY Mellon”), which has its principal place of business at 240 Greenwich Street,","page_number":33,"box":{"x":101,"y":113,"width":803,"height":11}},{"id":"7a399f25-c5ff-46c8-bbbd-27a556c58dd2","block_type":"box","text":"New York, New York 10286, serves as the accounting services provider for the Fund. BNY Mellon records investment,","page_number":33,"box":{"x":70,"y":128,"width":837,"height":11}},{"id":"a964b7c2-04b0-4ccf-b8fd-cbb860216913","block_type":"box","text":"capital share and income and expense activities; verifies and transmits trade tickets; maintains accounting ledgers","page_number":33,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"4a30806b-1ce2-4d8f-96ef-5ccbd02eec16","block_type":"box","text":"for investment securities; maintains tax lots; reconciles cash with the Fund’s custodian; repor ts cash balances to","page_number":33,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"38b23ef1-64e5-40a9-b72f-f5d1a3e85564","block_type":"box","text":"BlackRock; prepares cer tain financial statements; calculates expenses, gains, losses and income; controls","page_number":33,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"d1c66a5b-3d33-4712-8258-041009c0ac01","block_type":"box","text":"disbursements; works with independent pricing sources; and computes and repor ts net asset value. In connection","page_number":33,"box":{"x":69,"y":188,"width":815,"height":12}},{"id":"582a4c2f-8e2a-465d-aaab-93535c38764e","block_type":"box","text":"with its accounting services, BNY Mellon also provides cer tain administration services.","page_number":33,"box":{"x":68,"y":204,"width":621,"height":11}},{"id":"17fb0f20-efa9-4a03-84d6-c614b7360562","block_type":"box","text":"The table below shows the amounts paid by the Fund to BNY Mellon for accounting services for the fiscal years","page_number":33,"box":{"x":101,"y":226,"width":793,"height":11}},{"id":"419bed3c-0757-4f13-8fd3-0fa61f385a43","block_type":"box","text":"shown:","page_number":33,"box":{"x":69,"y":241,"width":48,"height":9}},{"id":"93dcbf2e-6f66-49e3-8e7e-8680e3c2e405","block_type":"box","text":"Fees Paid","page_number":33,"box":{"x":840,"y":269,"width":55,"height":8}},{"id":"6ce1ddfd-d220-4908-962c-d04c87d62bd2","block_type":"box","text":"to BNY Mellon","page_number":33,"box":{"x":825,"y":280,"width":84,"height":7}},{"id":"1ae09c39-d523-4b3a-841f-cca2327f2640","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . .","page_number":33,"box":{"x":70,"y":297,"width":317,"height":11}},{"id":"64e9321f-e525-457d-93c2-a7ed39c187a4","block_type":"box","text":"..................................................","page_number":33,"box":{"x":393,"y":305,"width":402,"height":1}},{"id":"7de6b298-bff0-42d8-831b-c8728821fe5d","block_type":"box","text":"$52,474","page_number":33,"box":{"x":837,"y":297,"width":62,"height":11}},{"id":"286cbe39-a508-4b86-9ffa-f19973865b1f","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . .","page_number":33,"box":{"x":70,"y":312,"width":317,"height":11}},{"id":"185c866a-7921-45af-bedb-5c1a70f85125","block_type":"box","text":"..................................................","page_number":33,"box":{"x":393,"y":320,"width":402,"height":1}},{"id":"f9edfd0b-3be8-425b-a696-352f8855351e","block_type":"box","text":"$53,318","page_number":33,"box":{"x":837,"y":312,"width":62,"height":11}},{"id":"fb8d568f-1d42-4626-a000-df12c48dc23e","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . .","page_number":33,"box":{"x":70,"y":328,"width":317,"height":11}},{"id":"a95f8db1-9646-4954-a7ca-6ace227a1f50","block_type":"box","text":"..................................................","page_number":33,"box":{"x":393,"y":335,"width":402,"height":1}},{"id":"5bcd5f8b-17d8-4c69-947b-d76d15415f59","block_type":"box","text":"$55,452","page_number":33,"box":{"x":837,"y":327,"width":61,"height":11}},{"id":"2af4454c-0855-4d79-b629-33e61db17b86","block_type":"box","text":"Custodian","page_number":33,"box":{"x":69,"y":359,"width":72,"height":9}},{"id":"e5405173-49e5-469c-92b8-c92f8244e21d","block_type":"box","text":"BNY Mellon, which has its principal place of business at 240 Greenwich Street, New York, New York 10286, also","page_number":33,"box":{"x":102,"y":382,"width":803,"height":11}},{"id":"a23a327c-4999-40ae-b39b-363e641bd718","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":397,"width":810,"height":11}},{"id":"0147ebda-d41b-47e7-bf79-857d5df51128","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":412,"width":815,"height":11}},{"id":"739424e9-4994-405d-a172-fa279f0f9ba4","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":427,"width":824,"height":11}},{"id":"d50f8834-000e-436d-b217-868cb41086a0","block_type":"box","text":"the assets of the Fund.","page_number":33,"box":{"x":68,"y":442,"width":165,"height":9}},{"id":"5e797e3d-99b3-4718-975c-949651ee5385","block_type":"box","text":"Transfer Agent","page_number":33,"box":{"x":68,"y":472,"width":107,"height":11}},{"id":"cc3f30f5-f72b-49f1-8bb9-4b1a375079fb","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":495,"width":764,"height":11}},{"id":"e48c6217-f6cc-4186-9e9c-6ab408327958","block_type":"box","text":"Westborough, Massachusetts 01581, serves as transfer agent and dividend disbursing agent for the Fund.","page_number":33,"box":{"x":68,"y":510,"width":764,"height":11}},{"id":"86a454bf-5a6c-4132-bccb-509ec3f716c8","block_type":"box","text":"Credit Agreement","page_number":33,"box":{"x":69,"y":540,"width":129,"height":12}},{"id":"28b2f334-cd3e-4278-9639-354eb423aaee","block_type":"box","text":"The Trust, on behalf of the Fund, along with cer tain other funds managed by the Manager and its affiliates","page_number":33,"box":{"x":101,"y":563,"width":757,"height":11}},{"id":"6d477c53-73ec-4b0b-bdc6-5ff5958dfc71","block_type":"box","text":"(“Par ticipating Funds”), is a par ty to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":33,"box":{"x":69,"y":578,"width":817,"height":11}},{"id":"87743eda-c732-44a6-aab5-25ba0ea4e3e5","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":593,"width":743,"height":12}},{"id":"aa2d0af9-62ac-4e3d-8687-eea1cb917e0d","block_type":"box","text":"commitments designated for cer tain Par ticipating Funds, the Par ticipating Funds, including the Fund, can borrow up","page_number":33,"box":{"x":69,"y":608,"width":825,"height":12}},{"id":"2b0b7e29-3fc7-4d36-80b7-9712b847289e","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":623,"width":818,"height":12}},{"id":"0395985b-1f00-4fa9-a306-6f9fbb105554","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":639,"width":761,"height":11}},{"id":"cb7e0fa9-b2e0-4273-9aa7-b0cf1d364097","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":654,"width":768,"height":11}},{"id":"4f2dd0ab-fb6b-43c5-9c5b-5a4af357a5d3","block_type":"box","text":"Agreement for leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectus and","page_number":33,"box":{"x":68,"y":669,"width":838,"height":11}},{"id":"33662473-542e-497f-8248-eb33ac5435b8","block_type":"box","text":"SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest expense and other","page_number":33,"box":{"x":69,"y":684,"width":816,"height":11}},{"id":"b7e179d9-da4c-4543-8b90-c224371fc4b5","block_type":"box","text":"fees and expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce the","page_number":33,"box":{"x":68,"y":699,"width":825,"height":11}},{"id":"f2e66f95-0ee3-480f-bcfe-ee86a30d2f19","block_type":"box","text":"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":70,"y":714,"width":771,"height":12}},{"id":"cf525c5b-a8c9-40cf-a89c-11dd6d0519a6","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":729,"width":833,"height":12}},{"id":"23ed4024-d4b8-4f88-ba59-5c974de7ef85","block_type":"box","text":"charged interest at a variable rate.","page_number":33,"box":{"x":69,"y":745,"width":245,"height":11}},{"id":"4798cc16-314f-48ca-ae1e-864f5a7fe1fa","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":33,"box":{"x":68,"y":775,"width":491,"height":11}},{"id":"c929e149-7302-4354-983c-de8835dd655b","block_type":"box","text":"Set for th below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":33,"box":{"x":102,"y":797,"width":773,"height":12}},{"id":"08c6a7c4-3357-4d94-b192-fac7d9f2e403","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":812,"width":804,"height":12}},{"id":"da282ae3-de1c-40e8-a88f-377bf8a70bf7","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":828,"width":656,"height":11}},{"id":"8b66791a-c522-41f0-b885-6832d99402b3","block_type":"box","text":"I-24","page_number":33,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"a8b6bd07-2254-46a4-be9b-080b3af9c34f","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":33,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a3c0ce94-6677-4813-bdc4-a4d858f17c52","block_type":"box","text":"Investor A Shares","page_number":34,"box":{"x":645,"y":49,"width":102,"height":7}},{"id":"737287b1-feb0-4525-a0cd-e83da28680de","block_type":"box","text":"Gross Sales","page_number":34,"box":{"x":485,"y":75,"width":68,"height":7}},{"id":"41f92a83-0f11-4193-bd54-5bd8a098bd5c","block_type":"box","text":"Charges","page_number":34,"box":{"x":496,"y":85,"width":47,"height":9}},{"id":"c9e7e1cc-c97a-4c61-96de-b4b5bbbe3962","block_type":"box","text":"Collected","page_number":34,"box":{"x":492,"y":95,"width":54,"height":7}},{"id":"2c8ca914-b5e2-4577-9883-52de13665ec2","block_type":"box","text":"Sales Charges","page_number":34,"box":{"x":585,"y":75,"width":84,"height":9}},{"id":"35d16663-3201-4d67-aa36-1cd8afceb6cd","block_type":"box","text":"Retained","page_number":34,"box":{"x":602,"y":85,"width":51,"height":7}},{"id":"576f7895-d607-4d9e-b21e-474c76688f95","block_type":"box","text":"by BRIL","page_number":34,"box":{"x":606,"y":95,"width":44,"height":9}},{"id":"34597284-fa6b-4436-9b0d-4c81e2adb422","block_type":"box","text":"Sales Charges","page_number":34,"box":{"x":699,"y":75,"width":83,"height":9}},{"id":"dfa69858-3368-4469-81d9-3ad33d8e4003","block_type":"box","text":"Paid to","page_number":34,"box":{"x":721,"y":85,"width":40,"height":7}},{"id":"e48ff6f1-b7c2-44f1-aaa2-0f48e9f9a6d8","block_type":"box","text":"Affiliates","page_number":34,"box":{"x":715,"y":95,"width":51,"height":7}},{"id":"5d8cb9f6-f48d-4e85-8768-78b23ab044a7","block_type":"box","text":"CDSCs Received","page_number":34,"box":{"x":812,"y":65,"width":97,"height":7}},{"id":"b7eaefb0-1722-4c48-a557-2fe356b2ac5c","block_type":"box","text":"on Redemption","page_number":34,"box":{"x":817,"y":75,"width":87,"height":9}},{"id":"b9044037-f099-4704-b3b9-a860d84677c2","block_type":"box","text":"of Load-Waived","page_number":34,"box":{"x":817,"y":85,"width":87,"height":7}},{"id":"9ab08d3f-7b67-4ae4-a542-896723e9a54c","block_type":"box","text":"Shares","page_number":34,"box":{"x":841,"y":95,"width":39,"height":7}},{"id":"fee94dbd-886c-4201-a045-82093ff0cf4d","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . . . . . . . . . . . . . $179,176 $11,783 $11,783 $3,587","page_number":34,"box":{"x":70,"y":112,"width":817,"height":12}},{"id":"83b35354-5fd3-45c9-a16d-f3404bcd9be6","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . . . . . . . . . . . . . $150,328 $10,803 $10,803 $1,410","page_number":34,"box":{"x":70,"y":127,"width":817,"height":12}},{"id":"566bead2-db57-48a2-a155-60e58a219e50","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . . . . . . . . . . . . . $166,761 $12,085 $12,085 $ 309","page_number":34,"box":{"x":70,"y":142,"width":817,"height":12}},{"id":"339012c5-f29e-41b3-bcc5-28af55586d1d","block_type":"box","text":"Investor C Shares","page_number":34,"box":{"x":780,"y":172,"width":103,"height":8}},{"id":"9daf001d-357b-4ea1-9c93-92ed3c5927e2","block_type":"box","text":"CDSCs","page_number":34,"box":{"x":765,"y":188,"width":39,"height":7}},{"id":"3d636f6e-c1f8-4083-8ef0-405688a78447","block_type":"box","text":"Received","page_number":34,"box":{"x":759,"y":198,"width":52,"height":7}},{"id":"bc7f7dfc-932a-4dae-b5fc-44828a9714a4","block_type":"box","text":"by BRIL","page_number":34,"box":{"x":763,"y":208,"width":44,"height":9}},{"id":"1ae3d691-02d9-4e38-b7b4-c46724eddf3d","block_type":"box","text":"CDSCs","page_number":34,"box":{"x":858,"y":188,"width":39,"height":7}},{"id":"4b16a775-5a16-4aa5-9929-87552e66c4bc","block_type":"box","text":"Paid to","page_number":34,"box":{"x":858,"y":198,"width":40,"height":7}},{"id":"f8c2b5e7-e4a7-48fb-81dd-0f4ab5bd8fb1","block_type":"box","text":"Affiliates","page_number":34,"box":{"x":852,"y":208,"width":52,"height":7}},{"id":"83396131-137e-4f3f-ba5c-a6b8802d0584","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . .","page_number":34,"box":{"x":70,"y":226,"width":269,"height":11}},{"id":"31f1edd5-033a-4e98-a5c2-e35373ae3fff","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,536 $ 4,536","page_number":34,"box":{"x":345,"y":225,"width":564,"height":12}},{"id":"0ce7ec9f-78d1-4d1c-ac79-da396fc02679","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . .","page_number":34,"box":{"x":70,"y":241,"width":269,"height":11}},{"id":"5ad957a4-f081-4122-9102-cf3b6a2bca0a","block_type":"box","text":"...............................................","page_number":34,"box":{"x":345,"y":249,"width":377,"height":1}},{"id":"675a123d-3530-4972-865b-c4aca0bab451","block_type":"box","text":"$29,060 $29,060","page_number":34,"box":{"x":754,"y":241,"width":155,"height":11}},{"id":"886c0806-0e6c-458a-922a-7b47ad9ec47c","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . .","page_number":34,"box":{"x":70,"y":256,"width":269,"height":11}},{"id":"9521636a-8ed2-4930-b9d3-a83e96b9b0d3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,363 $ 2,363","page_number":34,"box":{"x":345,"y":256,"width":564,"height":11}},{"id":"dae347e8-97e4-4c74-9712-b630b29c5e0a","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":34,"box":{"x":101,"y":280,"width":805,"height":11}},{"id":"e127ce16-7506-4e74-8dbc-4a4f14ea8bb2","block_type":"box","text":"to BRIL under the Fund’s 12b-1 plans. A por tion of the fees collected by BRIL were paid to affiliates for providing","page_number":34,"box":{"x":68,"y":295,"width":804,"height":12}},{"id":"be03594d-678e-4b7d-9c89-713ed1c84d7f","block_type":"box","text":"shareholder servicing activities for Investor A Shares and for providing shareholder servicing and distribution-related","page_number":34,"box":{"x":69,"y":310,"width":826,"height":12}},{"id":"5142d736-e64a-4416-bcae-f4626093d912","block_type":"box","text":"activities and services for Investor C Shares.","page_number":34,"box":{"x":69,"y":326,"width":318,"height":9}},{"id":"96f245ae-89c1-4887-8fc2-35165460b3e2","block_type":"box","text":"Class Name","page_number":34,"box":{"x":69,"y":364,"width":68,"height":7}},{"id":"6d151a2a-817c-46cd-841f-a667b0da029d","block_type":"box","text":"Fees Paid","page_number":34,"box":{"x":845,"y":354,"width":56,"height":7}},{"id":"be1ea09e-0a3c-4386-a993-b9d9e489b6a1","block_type":"box","text":"to BRIL","page_number":34,"box":{"x":851,"y":364,"width":44,"height":7}},{"id":"c5311e5b-658d-4409-9900-5842fffa6e75","block_type":"box","text":"Investor A Shares . .","page_number":34,"box":{"x":70,"y":382,"width":140,"height":9}},{"id":"a9a84c09-b2c0-44c8-b46f-d39740b83c5b","block_type":"box","text":".........................................................................","page_number":34,"box":{"x":217,"y":389,"width":588,"height":2}},{"id":"a7433258-f439-4f4b-89ef-17a7da1ef6b8","block_type":"box","text":"$452,717","page_number":34,"box":{"x":837,"y":381,"width":71,"height":11}},{"id":"7549d79d-4d01-4e85-b1d5-8a64c20accbf","block_type":"box","text":"Investor C Shares","page_number":34,"box":{"x":70,"y":397,"width":125,"height":9}},{"id":"1378fe55-0ce3-4a3e-bc1e-257d577f2f55","block_type":"box","text":"...........................................................................","page_number":34,"box":{"x":200,"y":404,"width":605,"height":2}},{"id":"daca9dc2-b92f-427a-87f0-e34a52e4f249","block_type":"box","text":"$164,115","page_number":34,"box":{"x":837,"y":396,"width":72,"height":11}},{"id":"05ea721c-b70e-4573-ba64-cda5f5b843b9","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":34,"box":{"x":68,"y":428,"width":318,"height":11}},{"id":"f6c2bb70-1bf0-40bb-9da6-7941442ae27c","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":451,"width":805,"height":11}},{"id":"d33953f1-b0e1-4bbd-afa6-528dd68038b6","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":466,"width":827,"height":11}},{"id":"d774a277-ca19-4456-b1d4-57c856f4b07a","block_type":"box","text":"for th below.","page_number":34,"box":{"x":68,"y":481,"width":83,"height":9}},{"id":"3bf1f095-d4bd-4fca-a8f4-7bbcc8b5ac0a","block_type":"box","text":"Investor A","page_number":34,"box":{"x":827,"y":510,"width":58,"height":7}},{"id":"a70a2ed4-3360-44c0-abf4-22507f7a61b2","block_type":"box","text":"Shares","page_number":34,"box":{"x":836,"y":520,"width":39,"height":7}},{"id":"33556fc0-d2de-4351-874f-50ec850e8426","block_type":"box","text":"Net Assets","page_number":34,"box":{"x":70,"y":537,"width":76,"height":9}},{"id":"1cd478d9-f629-4806-836e-48217cea32aa","block_type":"box","text":".............................................................................","page_number":34,"box":{"x":150,"y":545,"width":621,"height":1}},{"id":"631006cb-f3a5-455d-8d96-87941fd40d1d","block_type":"box","text":"$217,091,897","page_number":34,"box":{"x":803,"y":537,"width":105,"height":11}},{"id":"3d4278db-ffb3-4ca9-89a1-19cca693ddad","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":34,"box":{"x":70,"y":552,"width":245,"height":12}},{"id":"f419b370-e9f5-4aeb-a5c0-6138eb57e904","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,","page_number":34,"box":{"x":321,"y":552,"width":524,"height":11}},{"id":"248a9c01-b7b4-4381-993d-2eeaf813e988","block_type":"box","text":"416,156","page_number":34,"box":{"x":847,"y":552,"width":62,"height":11}},{"id":"8635c33e-01a0-4fbe-b766-1c02fd1d93fb","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":34,"box":{"x":70,"y":567,"width":571,"height":12}},{"id":"732cfcb9-ea2a-4c15-a2d7-1727718aa660","block_type":"box","text":"................","page_number":34,"box":{"x":647,"y":575,"width":124,"height":1}},{"id":"778ce024-d2e3-4650-a752-8d933c9c4614","block_type":"box","text":"$17.48","page_number":34,"box":{"x":857,"y":567,"width":52,"height":10}},{"id":"69eeaf98-f505-4414-97af-8bb98a8c5324","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":583,"width":534,"height":11}},{"id":"3d4ead8d-d41e-4826-9e4d-72b1859fb93a","block_type":"box","text":"1","page_number":34,"box":{"x":604,"y":583,"width":4,"height":4}},{"id":"bc7289e8-c762-43cb-89be-8c9573cf3922","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $.97","page_number":34,"box":{"x":615,"y":582,"width":293,"height":10}},{"id":"70ec0112-7ee0-4845-81fc-3e8416e56747","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":34,"box":{"x":69,"y":602,"width":702,"height":11}},{"id":"848ad441-5ec4-4005-8096-6a37e662ff1b","block_type":"box","text":"$18.45","page_number":34,"box":{"x":857,"y":601,"width":52,"height":11}},{"id":"dbf8ea90-3b19-4f7a-b780-585157360458","block_type":"box","text":"1","page_number":34,"box":{"x":69,"y":634,"width":3,"height":4}},{"id":"2370c580-3b53-4b02-bfe3-aed50e7500c7","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":34,"box":{"x":94,"y":634,"width":541,"height":9}},{"id":"2f1af521-4fd5-466a-b861-cbd6c894c879","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’ net asset value computed as","page_number":34,"box":{"x":101,"y":655,"width":787,"height":11}},{"id":"23e82db7-9e00-44cf-87a4-aec16837c017","block_type":"box","text":"set for th above for Investor A Shares. Though not subject to a sales charge, cer tain share classes may be subject to","page_number":34,"box":{"x":69,"y":670,"width":833,"height":11}},{"id":"f2fe05b8-5974-4a69-910d-d11607e7549c","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":685,"width":813,"height":12}},{"id":"ccc1921b-9cf8-4625-9af2-dfe30bf4c036","block_type":"box","text":"Shares” and “Pricing of Shares” in Par t II of this SAI.","page_number":34,"box":{"x":69,"y":700,"width":377,"height":12}},{"id":"d442140f-533b-4b89-a2a6-176ef8c44f3d","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":34,"box":{"x":68,"y":731,"width":302,"height":11}},{"id":"3ee01181-2958-4eee-86e7-9c40d7db073e","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in Par t II of this SAI for more information.","page_number":34,"box":{"x":102,"y":753,"width":609,"height":12}},{"id":"287f7ad5-120d-433a-8bda-531d6c358b3c","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, during","page_number":34,"box":{"x":102,"y":776,"width":798,"height":11}},{"id":"a227902e-1d7f-4514-a2b8-27c189a92f1a","block_type":"box","text":"the periods shown is set for th in the following table:","page_number":34,"box":{"x":68,"y":791,"width":371,"height":11}},{"id":"618df521-f2f2-4ffa-946c-f7f85809e985","block_type":"box","text":"Aggregate Brokerage","page_number":34,"box":{"x":620,"y":820,"width":125,"height":8}},{"id":"b8fbb237-9550-4ec6-8715-88fb499fc528","block_type":"box","text":"Commissions Paid","page_number":34,"box":{"x":629,"y":829,"width":106,"height":8}},{"id":"aee78479-aff5-4423-9a79-cd8f87a869d0","block_type":"box","text":"Brokerage Commission","page_number":34,"box":{"x":775,"y":819,"width":134,"height":9}},{"id":"62674364-a2e4-44a5-9472-1616824abccd","block_type":"box","text":"Paid to Affiliates","page_number":34,"box":{"x":794,"y":829,"width":96,"height":8}},{"id":"7dcfe96e-8f44-44bb-976a-5dae761d87c4","block_type":"box","text":"Fiscal Year Ended May 31, 2026 .","page_number":34,"box":{"x":70,"y":847,"width":242,"height":11}},{"id":"9fbb98b8-48c3-4bdc-b214-2452b2571355","block_type":"box","text":"..................................","page_number":34,"box":{"x":318,"y":855,"width":271,"height":1}},{"id":"b141fa5d-4563-4b97-a1cc-f4ae2eb241b4","block_type":"box","text":"$45,868 $0","page_number":34,"box":{"x":651,"y":846,"width":200,"height":12}},{"id":"61812a4b-57c0-4c29-8f2e-83482a6c4ab7","block_type":"box","text":"Fiscal Year Ended May 31, 2025 .","page_number":34,"box":{"x":70,"y":862,"width":242,"height":11}},{"id":"4c4f3adc-beb7-414f-9916-8468c2d91fff","block_type":"box","text":"..................................","page_number":34,"box":{"x":318,"y":870,"width":271,"height":1}},{"id":"aa571435-7d09-436a-a638-08e0d7e5d50a","block_type":"box","text":"$99,268 $0","page_number":34,"box":{"x":651,"y":862,"width":200,"height":11}},{"id":"d9da945f-ae50-4766-8936-b5f7652faecc","block_type":"box","text":"Fiscal Year Ended May 31, 2024 .","page_number":34,"box":{"x":70,"y":878,"width":242,"height":11}},{"id":"b5d99d23-1c0a-48c0-82ec-daccba494db4","block_type":"box","text":"..................................","page_number":34,"box":{"x":318,"y":885,"width":271,"height":1}},{"id":"cd6d0084-bab2-4255-9255-729a712eb2da","block_type":"box","text":"$76,695 $0","page_number":34,"box":{"x":651,"y":877,"width":200,"height":11}},{"id":"969d2524-cbdd-42c5-abef-0d139c9dc09d","block_type":"box","text":"I-25","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"0d526b04-c7ac-4ec5-a06a-32c394200ed5","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":34,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"de6a1621-be73-4db6-b133-7a7c1195c0fd","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":35,"box":{"x":101,"y":45,"width":770,"height":11}},{"id":"4c5a2252-3195-41e4-8145-03db1877cdb0","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":35,"box":{"x":69,"y":60,"width":814,"height":11}},{"id":"51dc15b4-aafe-4984-9d04-4262ee05ff3a","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":35,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"9ff95cb7-ebaa-48c5-8dff-fe0ee713d38c","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":35,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"2eaa815b-730d-4b8a-9a11-7edf85edd455","block_type":"box","text":"with such brokers.","page_number":35,"box":{"x":68,"y":105,"width":130,"height":9}},{"id":"91c06737-fdc6-4df4-8e14-62671b9e1222","block_type":"box","text":"Amount of","page_number":35,"box":{"x":396,"y":133,"width":60,"height":8}},{"id":"851c099e-3fed-4591-a958-f929cf4db652","block_type":"box","text":"Commissions","page_number":35,"box":{"x":387,"y":144,"width":77,"height":7}},{"id":"17bab92c-9639-4189-856c-f9c84247ab7c","block_type":"box","text":"Paid to Brokers","page_number":35,"box":{"x":381,"y":154,"width":90,"height":7}},{"id":"e84bc76d-758b-4ae3-b7b6-1bdd70d0b0f3","block_type":"box","text":"for Providing","page_number":35,"box":{"x":389,"y":164,"width":73,"height":8}},{"id":"ccfe343f-6f02-4766-9ced-1c7b9bf31895","block_type":"box","text":"28(e) Eligible","page_number":35,"box":{"x":387,"y":174,"width":78,"height":9}},{"id":"73aee343-e6c7-4f98-aeca-b5c1332482d6","block_type":"box","text":"Research Services","page_number":35,"box":{"x":372,"y":184,"width":108,"height":7}},{"id":"49f0f537-3249-44e6-8a8c-208de6b586aa","block_type":"box","text":"Amount of Brokerage","page_number":35,"box":{"x":588,"y":174,"width":124,"height":9}},{"id":"c387514c-6065-46c6-8c57-8b133e972b3c","block_type":"box","text":"Transactions Involved","page_number":35,"box":{"x":587,"y":184,"width":126,"height":7}},{"id":"9b72dc28-55dd-4c77-a07d-0cafac6135d2","block_type":"box","text":"$0 $0","page_number":35,"box":{"x":417,"y":201,"width":243,"height":10}},{"id":"4dd1cf1f-5383-4711-8072-be0aeaed2aeb","block_type":"box","text":"As of May 31, 2026, the Fund held no securities of its regular brokers or dealers (as defined in Rule 10b-1 under","page_number":35,"box":{"x":101,"y":225,"width":808,"height":12}},{"id":"e1bd440c-430a-4323-bd7e-1ec9ea1108d9","block_type":"box","text":"the Investment Company Act) or their parents whose shares were purchased during the fiscal year ended","page_number":35,"box":{"x":68,"y":241,"width":748,"height":11}},{"id":"5a6544c4-7887-4bc7-9940-9a32f31b6c73","block_type":"box","text":"May 31, 2026.","page_number":35,"box":{"x":70,"y":256,"width":104,"height":11}},{"id":"b7d6953d-a259-4537-be41-1b5197600a22","block_type":"box","text":"Securities Lending","page_number":35,"box":{"x":68,"y":286,"width":135,"height":11}},{"id":"a083eb34-cec0-451c-bc69-1897adec4b7e","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":35,"box":{"x":101,"y":309,"width":807,"height":11}},{"id":"0dbc6471-473c-49c4-aaf7-9a2cb728230a","block_type":"box","text":"exemptive order from the Commission permitting it to lend por tfolio securities to borrowers affiliated with the Fund","page_number":35,"box":{"x":69,"y":324,"width":817,"height":11}},{"id":"3e72a503-a9a5-43c0-804f-9628eb617bcc","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":35,"box":{"x":69,"y":339,"width":813,"height":11}},{"id":"3459501a-ec6d-49de-ae53-08d03f724a1c","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":35,"box":{"x":70,"y":354,"width":838,"height":11}},{"id":"cb8b9938-8b30-4ad7-afcd-03461bc3748d","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":369,"width":813,"height":11}},{"id":"e71a5668-345a-49da-9786-af464751dbf6","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":35,"box":{"x":70,"y":384,"width":646,"height":11}},{"id":"e3e7d5a5-0e6b-4acd-9597-ffaefb135b1f","block_type":"box","text":"The Fund retains a por tion of the securities lending income and remits the remaining por tion to BIM as","page_number":35,"box":{"x":101,"y":407,"width":735,"height":11}},{"id":"3afc4316-c5e9-435c-bc6c-fe4a4ef227ee","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":422,"width":834,"height":11}},{"id":"03eb1b26-f48b-4c70-a121-85adaddc0fed","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":437,"width":822,"height":11}},{"id":"6276ad85-762d-4dfd-92fe-1d3a8e229e85","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":452,"width":787,"height":11}},{"id":"629506e7-e48a-4318-ada2-81d722e1a276","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":467,"width":783,"height":12}},{"id":"5f3e3ef6-806f-4631-a4c8-b747a79f8d91","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":482,"width":800,"height":12}},{"id":"96dcb5d6-795a-4b34-817d-25585bb065bd","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":498,"width":813,"height":11}},{"id":"b4efff64-1ed9-4f15-bc2e-f11e6209f72b","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":513,"width":830,"height":11}},{"id":"2c68d903-c798-45cd-98d5-db3631204766","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":528,"width":773,"height":11}},{"id":"7d07ec00-0fee-4f21-b0fa-1a64ad6c35d6","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":550,"width":776,"height":12}},{"id":"3b233ac2-c4ea-4feb-99b2-08084f45a227","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":566,"width":831,"height":11}},{"id":"21202f74-a571-47be-bf43-2db76f0e2826","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":581,"width":812,"height":11}},{"id":"8795b6f0-b509-43e4-be19-bc94a45751a7","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":596,"width":799,"height":11}},{"id":"4f58732d-b4c1-44a8-9ccd-6acac2427b75","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":611,"width":835,"height":11}},{"id":"bc7c2c12-b9e6-48d3-a1ae-822bbba4e05c","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":626,"width":818,"height":11}},{"id":"7c657d98-73b8-4816-b12e-07923cda8dcf","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":641,"width":789,"height":11}},{"id":"c3da8677-35b4-4522-82a8-d62a565fd621","block_type":"box","text":"making a good faith estimate of cer tain costs the money market fund would incur if it were to sell a pro rata amount","page_number":35,"box":{"x":69,"y":656,"width":829,"height":12}},{"id":"c1d98363-09c8-486b-9c1a-b5a2f2636860","block_type":"box","text":"of each security in the por tfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":35,"box":{"x":69,"y":671,"width":839,"height":12}},{"id":"f0cce181-631b-49b2-a27a-b7b72b2236e3","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":686,"width":802,"height":12}},{"id":"673d1b9c-49e0-4a97-8137-d3e58af08f39","block_type":"box","text":"por tfolio security in good faith and suppor ted by data, it is required to apply a default liquidity fee of 1% on the value","page_number":35,"box":{"x":70,"y":702,"width":830,"height":11}},{"id":"99973706-c6cd-4b30-83ba-24fac7166f52","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":717,"width":838,"height":11}},{"id":"513dfe58-d84f-40da-9d73-8724b80a38ff","block_type":"box","text":"Fund’s returns on securities lending.","page_number":35,"box":{"x":70,"y":732,"width":258,"height":11}},{"id":"0b68adc5-6215-4691-a926-b66554e4a906","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":755,"width":774,"height":11}},{"id":"b8b8aaa9-4e03-4033-857b-5fc765018a9e","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":770,"width":794,"height":11}},{"id":"ed7575dd-3a63-479c-96d3-57fd20f17351","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":785,"width":809,"height":11}},{"id":"ccc4c248-b122-4f34-9d8d-404b894de71e","block_type":"box","text":"Trust and BIM.","page_number":35,"box":{"x":68,"y":800,"width":103,"height":9}},{"id":"08a979fd-389c-4142-a7a8-f4332af21ab7","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":823,"width":783,"height":11}},{"id":"f464b82d-b837-43b3-9395-8b8ca6ae10b6","block_type":"box","text":"lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the","page_number":35,"box":{"x":70,"y":838,"width":815,"height":11}},{"id":"ce1e60fa-4d20-40f0-a635-ef5905577828","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":35,"box":{"x":69,"y":853,"width":463,"height":11}},{"id":"bef66bb5-e1f2-435c-934e-8ffc934947af","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":875,"width":753,"height":12}},{"id":"1536d47e-d3c1-4564-a451-82d96dec8c93","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":891,"width":778,"height":11}},{"id":"490864d1-a0ad-4e32-ab37-d77adc889aba","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":906,"width":817,"height":11}},{"id":"7ec409af-ddb4-4a1e-a261-97a5a592b7a0","block_type":"box","text":"I-26","page_number":35,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"788417cc-a322-4a58-a6d2-a8085a10cd05","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":35,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3c106a99-db0d-4693-a028-1463ccbdc001","block_type":"box","text":"lending income as follows: (i) 85% of securities lending income (which excludes collateral investment fees); and","page_number":36,"box":{"x":70,"y":45,"width":794,"height":11}},{"id":"341bce6d-19d0-469a-a318-c6279b3e7ad1","block_type":"box","text":"(ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment fees.","page_number":36,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"d364951b-4dd4-4df9-8bd6-a94f486f3f9e","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":36,"box":{"x":102,"y":82,"width":683,"height":12}},{"id":"58424bf1-a3bd-4f29-8685-8ec88bd0fd68","block_type":"box","text":"The services provided to the Fund by BIM, in the most recent fiscal year ended May 31, 2026, primarily included","page_number":36,"box":{"x":101,"y":105,"width":803,"height":11}},{"id":"12370828-c16e-410f-ba88-8ae8203d9d16","block_type":"box","text":"the following:","page_number":36,"box":{"x":68,"y":120,"width":93,"height":12}},{"id":"81bd043a-4c64-48a6-99aa-fb6f5802ab71","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":36,"box":{"x":69,"y":140,"width":818,"height":12}},{"id":"ddd131cd-f499-4ce5-b125-786f99e78c41","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":36,"box":{"x":102,"y":155,"width":333,"height":11}},{"id":"ccef71ad-692c-41c0-afcc-92120e6d6692","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":36,"box":{"x":69,"y":176,"width":538,"height":11}},{"id":"a55b4260-bc85-48ac-9359-31eff7479047","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":36,"box":{"x":69,"y":196,"width":330,"height":11}},{"id":"c3b05121-1749-48ad-96c3-e3194fddf796","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":36,"box":{"x":69,"y":216,"width":834,"height":11}},{"id":"c35b5c87-bded-4ca3-a335-b94c28133b00","block_type":"box","text":"of excess collateral, as necessary;","page_number":36,"box":{"x":102,"y":231,"width":246,"height":11}},{"id":"b8e13bf7-3782-4399-a576-a01141b8e3b2","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":36,"box":{"x":69,"y":251,"width":562,"height":12}},{"id":"723168a7-715a-4577-b3ee-727a7b33b160","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":36,"box":{"x":69,"y":271,"width":665,"height":12}},{"id":"7490a018-0aa6-4a98-8d3b-ade8290c81d6","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":36,"box":{"x":69,"y":292,"width":822,"height":11}},{"id":"265ff195-3207-4736-bc60-932bb54e83d5","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":36,"box":{"x":101,"y":307,"width":803,"height":11}},{"id":"37b0590e-a8c5-44c3-9f30-b838220f497e","block_type":"box","text":"of the loaned securities; and","page_number":36,"box":{"x":102,"y":322,"width":203,"height":10}},{"id":"c83a3d93-2c69-4e66-84b0-95a41ec8e7f3","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":36,"box":{"x":69,"y":342,"width":808,"height":11}},{"id":"15370232-5f59-499c-9259-4fa11978a561","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":365,"width":805,"height":11}},{"id":"3cb089f6-78af-490b-928c-e97af67e28e2","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":380,"width":546,"height":11}},{"id":"a6e63a18-313f-40ca-afd6-430362abfe4e","block_type":"box","text":"Gross income from securities lending activities","page_number":36,"box":{"x":69,"y":408,"width":343,"height":11}},{"id":"85ee2227-e60d-40f1-9154-11b0967bd95f","block_type":"box","text":"...................................................","page_number":36,"box":{"x":416,"y":415,"width":409,"height":1}},{"id":"824e7880-199d-44f6-9bd0-e0bf51e4f8f7","block_type":"box","text":"$13,680","page_number":36,"box":{"x":847,"y":407,"width":62,"height":11}},{"id":"ac572bbd-2148-491e-8c07-09df28addf8c","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":36,"box":{"x":70,"y":427,"width":565,"height":11}},{"id":"62ef5bf7-c1fe-466c-b030-2181a3225174","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":36,"box":{"x":79,"y":442,"width":599,"height":11}},{"id":"f4983437-08fa-4fbd-bd0e-992ac0c009dd","block_type":"box","text":". . . . . . . . . . . . . . . . . . $ 159","page_number":36,"box":{"x":685,"y":441,"width":224,"height":11}},{"id":"225545ce-fe27-4866-bd05-eb879bfb1912","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM . .","page_number":36,"box":{"x":79,"y":457,"width":673,"height":12}},{"id":"cac9db4d-5d37-4658-b598-ea1d58b4de33","block_type":"box","text":". . . . . . . . . $ 133","page_number":36,"box":{"x":758,"y":457,"width":151,"height":10}},{"id":"6e20ea1e-adff-4ff5-9891-705bc2b28fd9","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":36,"box":{"x":78,"y":472,"width":551,"height":12}},{"id":"74964e49-8afb-4961-8823-ff5a1e1e37f8","block_type":"box","text":"........................ $ 0","page_number":36,"box":{"x":636,"y":472,"width":273,"height":10}},{"id":"9a925f56-02bf-457f-a64d-c01bbe1a82d8","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":36,"box":{"x":79,"y":487,"width":567,"height":12}},{"id":"76843f65-faa8-4b57-99d3-ebff95105948","block_type":"box","text":"...................... $ 0","page_number":36,"box":{"x":652,"y":487,"width":257,"height":10}},{"id":"a392bdaa-0075-4b57-a75d-47f1fffdde39","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . .","page_number":36,"box":{"x":79,"y":503,"width":289,"height":11}},{"id":"dd0f249e-0556-4237-9e6f-895da8ef83ab","block_type":"box","text":"........................................................","page_number":36,"box":{"x":375,"y":510,"width":450,"height":1}},{"id":"6a2dd4ef-27df-4c3e-8775-470505437d03","block_type":"box","text":"$12,619","page_number":36,"box":{"x":847,"y":502,"width":62,"height":11}},{"id":"7545ae90-6b1c-4efb-8e57-e693f3e13e38","block_type":"box","text":"Other fees not included in securities lending income paid to BIM. . . . . . . . . . .","page_number":36,"box":{"x":79,"y":518,"width":542,"height":11}},{"id":"a6ed1ad9-ad6d-4e76-bf28-04b6b81410d7","block_type":"box","text":"......................... $ 0","page_number":36,"box":{"x":628,"y":517,"width":281,"height":11}},{"id":"25987a3e-23d2-42fb-afba-7babb950bfa2","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":36,"box":{"x":68,"y":533,"width":455,"height":11}},{"id":"ae890fac-9f49-4f0e-bded-990b376d581f","block_type":"box","text":".....................................","page_number":36,"box":{"x":530,"y":540,"width":295,"height":2}},{"id":"aad51a8c-cccc-4091-b251-6f6f9547e7d6","block_type":"box","text":"$12,911","page_number":36,"box":{"x":847,"y":532,"width":62,"height":12}},{"id":"7373cc1a-8ac0-4018-91c2-ba654a06891f","block_type":"box","text":"Net income from securities lending activities","page_number":36,"box":{"x":69,"y":552,"width":327,"height":11}},{"id":"c7c79b34-f2ba-4427-b866-769e9a51f379","block_type":"box","text":".....................................................","page_number":36,"box":{"x":399,"y":560,"width":426,"height":1}},{"id":"257794d3-6d24-4d84-b4b2-a52414c3463e","block_type":"box","text":"$ 769","page_number":36,"box":{"x":847,"y":552,"width":62,"height":10}},{"id":"a4c7a51c-7f1c-4d46-aebf-3a35aa5edfb9","block_type":"box","text":"VIII. Additional Information","page_number":36,"box":{"x":68,"y":588,"width":195,"height":9}},{"id":"92c684dc-6ec1-44ee-aaef-b5754c65ecf0","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":36,"box":{"x":102,"y":611,"width":352,"height":11}},{"id":"c05d6168-fb8c-4ca6-bc70-548a6f811a40","block_type":"box","text":"Deloitte & Touche LLP, with offices located at 115 Federal","page_number":36,"box":{"x":461,"y":611,"width":412,"height":10}},{"id":"527cb203-2d52-464c-adfb-cf24f93c1a30","block_type":"box","text":"Street, Boston, MA 02110, serves as the Fund’s independent registered public accounting firm.","page_number":36,"box":{"x":69,"y":626,"width":685,"height":11}},{"id":"6c675882-daa7-4e6f-915b-71ae3b988867","block_type":"box","text":"Counsel.","page_number":36,"box":{"x":101,"y":649,"width":62,"height":9}},{"id":"11b288b7-2136-4f52-b668-dd7fd967a009","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":649,"width":736,"height":11}},{"id":"8273be53-cbe8-41e0-b1bd-a1be3d4825f1","block_type":"box","text":"the Fund’s counsel.","page_number":36,"box":{"x":68,"y":664,"width":139,"height":9}},{"id":"6054e3d9-729d-461a-bc11-6c69d09f3365","block_type":"box","text":"The Trust","page_number":36,"box":{"x":68,"y":694,"width":69,"height":9}},{"id":"f5347901-e60d-4faa-83ac-c3bac6f1e09b","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":717,"width":807,"height":11}},{"id":"db1ef11b-47a0-4778-9f35-35cc585bf94c","block_type":"box","text":"Investment Company Act as an open-end management investment company. The Fund is non-diversified. Effective","page_number":36,"box":{"x":70,"y":732,"width":808,"height":11}},{"id":"5afa5014-40cc-4841-a82e-7902fc89b28b","block_type":"box","text":"January 31, 1998, the Trust changed its name from Compass Capital Funds","page_number":36,"box":{"x":69,"y":747,"width":542,"height":11}},{"id":"0b84c0cd-d12c-402a-bd00-0d5df4b54536","block_type":"box","text":"SM","page_number":36,"box":{"x":612,"y":747,"width":11,"height":5}},{"id":"94b37a74-f63b-4b8f-9214-4c487941c0d0","block_type":"box","text":"to BlackRock Funds","page_number":36,"box":{"x":628,"y":747,"width":139,"height":9}},{"id":"65393164-7e41-4449-91e3-6698546a8c27","block_type":"box","text":"SM","page_number":36,"box":{"x":769,"y":747,"width":10,"height":5}},{"id":"a8f70c4e-cb1d-4bb9-87f9-b576c18baec3","block_type":"box","text":". The Trust is","page_number":36,"box":{"x":782,"y":747,"width":90,"height":9}},{"id":"25bf3399-66c5-457e-a3c4-678b516e4e52","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":761,"width":827,"height":12}},{"id":"c3baa109-827a-4c0f-b80b-64a6a320d57b","block_type":"box","text":"may be divided into different series and classes. Effective on December 27, 2017, all of the issued and outstanding","page_number":36,"box":{"x":69,"y":777,"width":832,"height":12}},{"id":"aab9d6d3-bd40-47d5-99bd-4196761fd24a","block_type":"box","text":"Investor B Shares of the Fund were conver ted into Investor A Shares of the Fund.","page_number":36,"box":{"x":70,"y":792,"width":577,"height":9}},{"id":"360df1fe-1c8f-419f-a9e7-7defbb0205cb","block_type":"box","text":"Under Massachusetts law, shareholders of a business trust may, under cer tain circumstances, be held","page_number":36,"box":{"x":102,"y":815,"width":734,"height":11}},{"id":"ba40318b-f65e-48ae-8d1e-4d99839f4a05","block_type":"box","text":"personally liable as par tners for the obligations of the Trust. However, the Trust’s Declaration of Trust provides that","page_number":36,"box":{"x":70,"y":830,"width":822,"height":11}},{"id":"5a3e2cdb-2158-4330-9ca3-7edb4e359568","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":845,"width":814,"height":11}},{"id":"6044b207-75ed-49c3-895b-2e24804e9e56","block_type":"box","text":"obligations of the Trust, and that every note, bond, contract, order or other under taking made by the Trust shall","page_number":36,"box":{"x":69,"y":860,"width":794,"height":12}},{"id":"672a7782-abf1-417e-9fe6-a9cf051497fc","block_type":"box","text":"contain a provision to the effect that the shareholders are not personally liable thereunder. 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Financial Statements","page_number":38,"box":{"x":69,"y":559,"width":179,"height":9}},{"id":"4cbbac92-e2fc-4096-b6ef-cf845a8dbbbc","block_type":"box","text":"The audited financial statements, financial highlights and notes thereto in the Fund’s Annual Financial","page_number":38,"box":{"x":101,"y":582,"width":726,"height":11}},{"id":"30ca78fb-4cd1-451b-b5b6-781fb2c85c2a","block_type":"box","text":"Statements and Additional Information for the fiscal year ended May 31, 2026, as filed with the SEC on Form N-CSR","page_number":38,"box":{"x":69,"y":597,"width":829,"height":11}},{"id":"4cd6c595-6c34-4acc-80a6-7e17fcfee12b","block_type":"box","text":"(the “2026 Annual Financial Statements”), are incorporated in this SAI by reference. No other par ts of the 2026","page_number":38,"box":{"x":69,"y":612,"width":800,"height":11}},{"id":"95b76785-7a7e-4c25-a452-5c26256fd67c","block_type":"box","text":"Annual Financial Statements are incorporated by reference herein. The 2026 Annual Financial Statements have been","page_number":38,"box":{"x":68,"y":627,"width":833,"height":11}},{"id":"585ad452-1ae3-449c-a84d-de24205cdf56","block_type":"box","text":"audited by Deloitte & Touche LLP. The repor t of Deloitte & Touche LLP is incorporated herein by reference. Such 2026","page_number":38,"box":{"x":69,"y":642,"width":839,"height":12}},{"id":"ef36d3cc-99b8-4055-a75e-2f692994921c","block_type":"box","text":"Annual Financial Statements have been incorporated herein in reliance upon the repor t of such firm given their","page_number":38,"box":{"x":68,"y":658,"width":790,"height":11}},{"id":"ee546f12-2212-414a-a279-5cf47e6be20a","block_type":"box","text":"authority as exper ts in accounting and auditing. Additional copies of the Fund’s annual and semi-annual repor ts to","page_number":38,"box":{"x":69,"y":673,"width":815,"height":11}},{"id":"a3284c37-5b8c-40d7-b558-a2b80b9cc8d4","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":688,"width":785,"height":11}},{"id":"10b11613-a9c1-43c6-9007-478048a91913","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":703,"width":836,"height":11}},{"id":"16f74b26-eec3-4fd7-b75e-cd0acfd5748a","block_type":"box","text":"I-29","page_number":38,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"c6fadf0d-bcb8-41c8-b495-3f63519a549e","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cdfbc28f-da33-4610-add8-1b18850cfa90","block_type":"box","text":"PART II","page_number":39,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"7e874f38-9dcf-4de9-9f65-a90e2837497f","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":"b861af53-210e-4c47-a9c1-7587a39240c1","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Cer tain Funds may also be referred to as “Municipal Funds” if","page_number":39,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"91c9f4e8-bf93-4590-8c5a-98ffad3aa16c","block_type":"box","text":"they invest cer tain of their assets in municipal investments described below.","page_number":39,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"fa2b277e-e327-4dde-ad64-da1928201ac0","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":"1f5a0494-4ed5-4285-a704-088a79fd3c3f","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":"59167cf0-69bc-4da5-a735-87a4f27c6881","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":"94cf2cb5-ead7-4b1a-b652-a6c0ea940c0e","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":"39c79d50-8197-43a0-b7e0-78b2498b657a","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":"33c00c0f-5937-4806-aa1d-51dd23001ae4","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":"244d034c-3681-4126-b671-ca07d80f6e79","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":"b1280aff-0c4c-426f-b496-3f62dfffbf1f","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":"c8c12a01-cf34-472c-9882-b6d9b3af073a","block_type":"box","text":"Ar ticles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “char ter.”","page_number":39,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"9062b6ac-4929-4924-8223-0519d6d715e5","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":"63ae9780-a8b4-4445-af43-c737ab088ad7","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":"a3bda549-9a2e-4d04-bacd-bc3e5f49c685","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":"e5cf0246-d89f-4c76-b414-32ed5ba9ed42","block_type":"box","text":"Cer tain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a por tion of their assets in a","page_number":39,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"1d944619-8c58-4319-b0c4-11d755c6b1d3","block_type":"box","text":"corresponding “master” por tfolio (each, a “Master Por tfolio”) of a master limited liability company (each, a “Master","page_number":39,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"9f0051d7-46d2-435e-aa3f-5a7219f4f6e7","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":"16814b76-0c3c-45a4-bc16-93d3617a82f6","block_type":"box","text":"made at the level of the Master Por tfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":39,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"787be0d2-34b1-480f-95eb-3bba073847db","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Por tfolio in","page_number":39,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"b18bcd12-0037-407d-b4d2-95f979c5c38c","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Por tfolio.","page_number":39,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"44f92074-c502-456b-a4a7-2d976dbe8262","block_type":"box","text":"In addition to containing information about the Funds, Par t II of this SAI contains general information about all","page_number":39,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"01a9ea56-c83d-492a-886a-2720787adaa6","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":39,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"b7d0e8df-1713-42d9-a655-94e87aee4b65","block_type":"box","text":"par ticular Fund.","page_number":39,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"0c2ed755-0f28-4e80-9d79-65c6f55c46be","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":39,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"aa411432-da43-40d7-bdd5-94d11b31f681","block_type":"box","text":"Set for th below are descriptions of some of the types of investments and investment strategies that one or more","page_number":39,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"7585be5d-fc0c-4c71-a928-0b467698c95c","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":"737e153f-0f6e-44e7-b315-0de493daa9d1","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":"8fc99398-2c05-4749-8196-a79b65fe21a4","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":39,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"df9e08d4-5c94-4fb3-8ecf-295e63ede303","block_type":"box","text":"I of this SAI for fur ther information on each Fund’s investment policies and risks. Information contained in this","page_number":39,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"11e8870b-8bb7-4236-aee7-2d4b3a770139","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":"f9a39c5a-7228-46c2-8099-2dddd6892183","block_type":"box","text":"applies only to those Funds specifically identified in Par t I of this SAI as making each type of investment or using","page_number":39,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"0ab1c21c-ae35-4af1-a6e1-8513421ed41c","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":"c29e0f67-1123-436c-9152-b08d3de31dae","block_type":"box","text":"a par t of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":39,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"8cc00c49-ba1c-4bd3-91ee-d2e8f0bcc1f2","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a par t of that Covered Fund’s SAI.","page_number":39,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"cc3c4064-8f1a-4aee-b87f-f12fd99254e2","block_type":"box","text":"Asset-Backed Securities.","page_number":39,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"a3c87273-7e5e-4326-a724-cbdafb5535fa","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":"2d2fe0dc-0c3f-4b32-b560-59fc751acfd7","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":"7ff44b99-9857-4dbd-8c95-fd9a38dc25d4","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":"fc8fcf1b-4f04-4358-a7a0-8aa63ae47c2b","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":"a287e619-3e38-40fa-b27e-d722b742e1f8","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":"f0df762f-bd2f-472a-8fa9-9ec6a3a3390e","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":"135b899c-3aeb-44d6-b407-eab1aa792a3a","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":"4ca8da57-ac54-425d-a1c8-8f0649bbacc8","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":"78127384-5dd4-41a7-9bb9-bc717784f01a","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":"e385c7ca-b9b8-443b-8b29-2cdafb09f9f6","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":"2068b504-d8d0-4b33-ad69-2f0744a6aff2","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":"d357a78c-2c80-4290-857f-771e90decab3","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":"0d0ed756-aed1-4c7b-9f7b-16f9a94a2044","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":"c4526a36-20be-4bc2-ba70-c82426b11b4a","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":"02ad97e6-7641-402d-af3a-f0316151c4f5","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":"f2bed597-60d1-45a3-95e8-adbc74a649a6","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":"021ae9f2-7f1f-4099-a7d3-3494792a83dd","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This par ticular risk may effectively","page_number":39,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"755d5398-84ac-4cba-81ed-e1af0a477543","block_type":"box","text":"change a security that was considered shor t- or intermediate-term at the time of purchase into a longer term security.","page_number":39,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"a3f6244a-72e0-4a36-899f-10422024d1eb","block_type":"box","text":"II-1","page_number":39,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"1eb31eba-90b8-43a1-b9e4-2bdf57d908ad","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fa62142c-a0d2-421e-94b9-8f11d6732c6d","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":"6d312c2b-e40e-4185-a1db-a4e9d9f9e968","block_type":"box","text":"than does the value of shor ter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":40,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"7f5920ee-1199-4e00-8b75-8f7f5c5a926a","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":"e05ee44e-15cb-45af-b518-ca0eb7f47464","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":"94c92e7b-de96-41db-ac02-278bd4c9a8da","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":40,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"45b0f921-9357-4440-af27-2b7a73c0d299","block_type":"box","text":"Asset-Based Securities.","page_number":40,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"0467c0f5-770e-4b66-9b95-89b1dabc3bdc","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":40,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"241eace7-586f-473e-9bbc-2b93f2a405dc","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":"7b84539f-3457-4c43-8c40-0edd3fa6b936","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":"71ca9832-16c2-4bcc-9e58-5c668017d290","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":"a5544fee-ba5a-41a2-92de-54b53c50377b","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":"a06f0d84-1391-4b82-8c70-fab81853c3bb","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":"98bc6ed3-fe75-47c8-a826-20459abb9260","block_type":"box","text":"issuers that the Manager has determined to be of similar creditwor thiness. Obligations ranked in the four th highest","page_number":40,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"8ede8459-2d15-4ba6-b6ec-c680d2662e83","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":40,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"dc44d785-c4f7-4dfe-a767-f13eae10c5f4","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":"6a00779c-e94d-417e-82fe-b839d3b351f5","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":"72d0b75c-146d-4d0a-861c-50930a6365fa","block_type":"box","text":"determining the creditwor thiness of the issuer. While the market prices for an asset-based security and the related","page_number":40,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"e56c6543-eb3b-4bb2-acf4-a6741d55704a","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be per fect correlation in","page_number":40,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"4e66086d-109b-47c3-b124-5f4a4a051ca7","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":"56f10417-8bde-4238-8921-fec21e5b7055","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":"759070a9-d713-46ad-a137-e85a44e711a2","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":40,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"3da4fdf0-e67f-4e03-8a09-4e76944d4f74","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":"a212a495-9f1d-4708-89d6-3e9448c7cccb","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":"b4f7fa45-6c33-4c1c-8f31-c1b3bf7e2d90","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":"8cea893c-8e5e-4d0f-9e99-eb8c320dcbe3","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":"77674d75-eb83-495c-bfe1-5a7cad72a555","block_type":"box","text":"appreciation in the underlying asset.","page_number":40,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"ca02cc3c-d2dc-4abf-bc5d-164113281fa3","block_type":"box","text":"Precious Metal-Related Securities.","page_number":40,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"77453161-2353-42ac-8dad-d4b3c810d94e","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":"a3167dd4-d335-4d5b-ada0-9ab7dd1fcefe","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":"7789db7e-7125-4e85-99cf-c88a383b9695","block_type":"box","text":"e.g.","page_number":40,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"71d0b94e-a1c7-4a70-a026-533ad60f1d07","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":"92285f3b-61bc-4291-b678-a2520b69ea2b","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":"f4893feb-1dbc-4c9f-97ab-a2216fae00e4","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":"a9a74350-95cf-4ce4-b7b8-7c0ba7960e76","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":40,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"b505843c-e09e-48af-8aff-91dfe4e25817","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":"17e16286-899e-4751-816b-e66e8e5663ca","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":"f2cf0fc9-fb9f-4666-95ab-579595c1eb78","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":"72689585-2477-4294-b6cb-59270fea7201","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":"f0498db0-fa3f-4670-a309-81f5577cc99d","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":"57e989a8-fe85-4a5a-838b-5a44daa6a598","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":"718c331e-f42d-4e65-91a2-e7b25072dca7","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":"2f230440-6981-4a68-854d-2a7dda508ab4","block_type":"box","text":"South African gold production.","page_number":40,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"c663b476-5c57-417b-9fd5-3f1b1c678f8e","block_type":"box","text":"Borrowing and Leverage.","page_number":40,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"676c1a4d-f412-45bc-8dde-1981bdc618cd","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":"d3c80edc-7e13-45b6-88f8-d61d194408a4","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":40,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"8e069cc8-5591-4bd3-85c3-50d59ba2d759","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":"7f2153db-ce8f-4e9d-b2c8-236ab449ac02","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":"f258a1fe-6b22-4f78-9b8d-13f739c59628","block_type":"box","text":"other securities transactions.","page_number":40,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"b6d49428-ea8c-44b5-84ca-77b9c555cda9","block_type":"box","text":"Cer tain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":40,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"01055692-c63a-4ce5-a5cf-91a9219236fc","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":"dbc3104a-8627-4f42-bd1e-a964f58a0426","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":"1336017d-370c-4872-b9c7-0861d4d23a50","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an oppor tunity for greater total return, but, at the same","page_number":40,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"67b186ec-f0ea-41f2-9dae-b9c035b887d1","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":"8ff392ba-9eaf-4cb4-8ac2-eb1966bc45cd","block_type":"box","text":"shares and in the yield on the Fund’s por tfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":40,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"6e6eab94-107a-4fff-b656-b0e824252dce","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":"96b55580-bc0a-423e-8f7e-179c9155f934","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":"a430b417-0934-4cfa-8fd0-5aaded961d32","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":"45ea26ef-a4cd-42fa-80d0-1a878a27b496","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":"06aa1f19-24ff-4314-9947-9e678adddc7e","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":"1f093401-6e00-4fa3-993b-dc20f8a7c864","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":"ee31a573-1610-4cbc-8a28-e010b6712ccb","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":"1753787f-fe67-4837-a2e2-eb0cd41bc12f","block_type":"box","text":"II-2","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"e8832346-2110-4a31-95c0-4bd8f73fe94c","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8f105d8d-00a8-4598-ae23-19e210bd9ba8","block_type":"box","text":"never theless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":41,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"75b0e771-1103-4365-9969-95acb4d3fa6a","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":"3dd3dbd1-1319-4169-8049-e3e517c01c57","block_type":"box","text":"Cer tain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":41,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"9c01d210-4c88-45fa-a211-d3b44a23fbc6","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":41,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"aef80808-c9c7-423e-aef6-a7190cd99143","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s por tfolio in accordance with the","page_number":41,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"0f18916a-b41f-418d-adb8-fadeeae4d261","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":"e54f5a01-261f-4d7a-8be1-3283c3929803","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":41,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"13b22b9e-0a2c-4a64-9276-f2bfe94e9316","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":"b9c176b3-5e9d-438b-91ff-6f209e3b6e00","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":"50be5f2a-7d19-43a8-a8db-c13b35cb5474","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":"8766fb53-112f-42e3-9974-ad123ed404d1","block_type":"box","text":"Cash Management.","page_number":41,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"1b2a01be-2e98-4492-824e-9edc66bd1e28","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":"135d9eb9-0402-4474-8d86-2577f70ea2ee","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":"b5cb2a21-fe97-4eb6-b2c7-0811a69c006b","block_type":"box","text":"in the opinion of the Manager, a por tion of a Fund’s assets may be invested in cer tain types of instruments with","page_number":41,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"bfa0d4e9-844a-4936-90de-f0ec16ae129e","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":"3675aa35-28c6-4320-be55-81d9ec1a53b8","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":"41d7923d-d975-4794-bff3-36e54d8f40ab","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":"4b26bfb3-e018-49a5-b9e2-666fe875ec83","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":"d39547ce-5589-4361-b292-5af9feaf8264","block_type":"box","text":"cer tificates 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":"a3c74d9c-77c0-4aef-a852-b24951be5c2a","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":"9371f777-a983-49ef-9494-b490d488315d","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":"38fb6c9a-8a14-4872-93b8-e0454e6419bf","block_type":"box","text":"obligations or other shor t-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":41,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"88a4a061-7fb8-452f-80d2-1a2e27df9e3f","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":"e0187025-8060-4201-bf92-2f0082ee7de1","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":"dcbd2219-0e1f-46d2-a5f3-f7de5256e2a3","block_type":"box","text":"Collateralized Debt Obligations.","page_number":41,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"5c7cd440-f375-409a-812e-85fd6b53d7db","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":41,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"5a49678a-6a03-41ae-9b20-d90e559bf3b6","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":"f139fc52-3209-4e58-bf6f-ca3279b17f04","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":"56200938-a1a4-443b-84d4-91b34516cda1","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":"fb42455e-28ed-4198-82a5-31472f67f9a2","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":"0d5a3e6f-3bbd-402a-8e34-75dc3c259b8f","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":"6d96625e-61de-41f5-9a5a-9083110976a2","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":"7d945b0b-244a-44f9-8555-63aadbcb5fc2","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":"749323a0-71c2-4ba8-acba-154fc4ff2fb6","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":"5d1a53bc-66ac-4c4a-b0e0-4cda49a77dd6","block_type":"box","text":"substantial por tion of which are U.S. loans. Although cer tain CDOs may benefit from credit enhancement in the form","page_number":41,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"39b8da20-f28b-486b-8bfc-58df9662db08","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":"768a158b-2548-4cb6-bcfe-6c13401f416d","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Cer tain CDO issuers may","page_number":41,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"b4ccd85d-430e-4af4-9e5f-10e313772a80","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":"7baf457e-6b85-4420-baa0-1661612d195e","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":"f5bb2d99-b7b2-4e3f-838b-ef048cb1a6da","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":"aaac5f0f-f557-4c16-bf3b-2c02f59e2285","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more por tions, called tranches,","page_number":41,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"ba0353ba-94a6-4aee-98e0-1abeb2d71f80","block_type":"box","text":"varying in risk and yield. The riskiest por tion is the “equity” tranche, which bears the first loss from defaults from the","page_number":41,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"074e217b-1313-4bae-b630-b6305f0f72a7","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":"3755583d-83cb-4a30-9103-a1bfeef7eed9","block_type":"box","text":"is not complete). Since it is par tially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":41,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"b4b71087-440c-478a-b436-3f785ada9fc7","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":"9fa90ed6-4b6b-46ac-826a-4de3240422fa","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":"dbf11f65-fd91-4368-ae36-8e851cbe472d","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":"1d59e97d-b0ed-4ec5-85cb-f481a5f4da74","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":"10667862-0286-4cbe-a35e-acdf49ffbfe4","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on cer tain tranches","page_number":41,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"822233dc-bdf5-460d-97cb-0d2479ed5607","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":"76ab19a4-944f-43c5-be2e-176986069425","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":"9e1f801a-1677-4c37-b97d-93ca8225cca6","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":"372d35d3-ac6b-4f0b-9d13-7c566b7c8bcd","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":"0c34fb14-56ce-4a1a-aec9-5a8d972254d4","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":"dd271e07-c0f2-4c5c-9270-c2a80d998880","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":"95865abb-ced3-45d7-9259-7faedeff7fd7","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":"8a1c44eb-617b-491e-b933-cbb3fd88b6b8","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":"87ae0b0f-8f67-4008-9572-e319c12bc83d","block_type":"box","text":"II-3","page_number":41,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"801f16dd-671f-4296-afe2-abba277846bb","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4c123ae2-b975-4111-89b3-292dcee9a608","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":"fb7a4b01-bb7b-44d6-829c-0f891c2a21a1","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":"fc562075-4fcf-4f4b-87e7-d192a9dfce7b","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":"fc133565-df42-46fe-bbf0-6c89eb26facb","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":"6e3a2487-ac2e-43a2-8b64-a368fa222d40","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":"5e623785-925a-4dc8-be79-497f27039763","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":"5f34a909-be15-4d07-8f1f-350a84bfc97d","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":42,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"c3231783-037e-4fc9-9545-9bf131dd2e85","block_type":"box","text":"Commercial Paper.","page_number":42,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"ef4fc5c0-5843-418d-8bd1-c217fb5f49e5","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":42,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"e7520f0e-e877-4812-a8f6-af6981b6bbd4","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":"8952c89f-0dac-4503-a7d9-aed7e29eca18","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":"1759a11c-1edb-4bc0-9889-7d7682aae187","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":"158a37b2-f71e-4656-9cc1-57d02b3945e1","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":"a22ab04f-6dc9-4f4c-886b-f20f2dc4c327","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Cer tain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":42,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"6023b896-c5f1-4d16-ab39-778d2d727570","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":"3579bf48-39aa-4ab3-8388-7e25b6bd62c0","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":"3862a1de-93d7-4c8c-8386-8abf0defbf15","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":"f7f64729-e0a8-44da-9f4d-29bb0487e7a3","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":42,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"22f2c91e-5caa-447f-a056-cdf31bc4864f","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":"f6f2fe08-6954-43d1-a87c-dea0f2eb6ba2","block_type":"box","text":"paper prices will decline and vice versa. However, the shor t-term nature of a commercial paper investment generally","page_number":42,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"6dd78e8a-be8e-4d84-aa05-a6c8ef3a1a90","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":"10e41a39-779b-4523-b130-15f609a6f012","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":"9bacff5e-1502-4e93-81d7-fc3ae18cf624","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":42,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"7760277b-3969-4a34-bb39-cc06664458a9","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":42,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"62aac4a3-4399-4e31-a2d3-8e68262a88f8","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":42,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"6fc0c98b-72fa-4486-8960-1528118e3e88","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":"a7392f76-e6d4-4019-ac9d-3dbffc21d0d0","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":"5f74561b-2c6d-4032-aba7-930b6a64724f","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":"489a1eaf-5c9d-47d6-b260-ea71a9f2b1c8","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":"30631c10-f873-450e-a0b3-adf94dfa9790","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":42,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"23399d1d-626b-41e0-8aa8-0c6d75d1296d","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":"768e1f7b-d92a-4bb3-96a7-0c2ea886b77d","block_type":"box","text":"variable.","page_number":42,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"2662b9c7-5dbd-4f8f-bfb7-c17d6758fdb8","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":"44666a06-5395-48f2-9a79-2955a59f6c2f","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":"b40fe91a-9576-424f-a56c-dc9a6be80309","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":"e967f7ba-9bf8-4bad-bf15-df5af671b75b","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":"67c3a5a2-0df3-428e-8b09-812f181a581b","block_type":"box","text":"rising inflation, the prices of cer tain commodities, such as oil and metals, have historically tended to increase. Of","page_number":42,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"3b6e5c50-acd5-4b75-be4b-e2e4c6568ed0","block_type":"box","text":"course, there cannot be any guarantee that these investments will per form in that manner in the future, and at","page_number":42,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"035eeac0-1733-4c52-a73c-ff5821d2dcde","block_type":"box","text":"cer tain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":42,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"202fa32b-44fc-4cc2-9947-05605d28b7eb","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":42,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"e0e15361-ad35-4aca-8792-20fb1e224657","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":42,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"c927fe0c-826b-4bbe-ae0b-c140cd22b306","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":42,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"9ba33a7b-4f75-4562-988d-78fb451a00e6","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":42,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"0c85bfb7-14ec-47a8-bb00-ae20df0be044","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":"bb814d8b-f980-410e-be84-96d912d92db8","block_type":"box","text":"correlation with stocks and bonds.","page_number":42,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"cc2ec7c0-c513-4e80-8dbf-e11ce8c24b69","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":42,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"45904c7e-99af-4287-957e-88c604aba6cd","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":42,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"997f882c-a4c4-40b0-9e2c-cb4452d495d1","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":"e3dbc81a-6aa0-4583-ac9e-cac7c92965c5","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":"b15d409a-d931-4613-97e5-525d86ba73c3","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":"abc62039-6296-4de2-b1a0-9aa51a98b59c","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":"e40a4944-c641-4898-b119-c83dbfbcad26","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":"bf576c8f-8ade-4a1a-a4a4-083dabfff46e","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":"8cc8290c-014e-4101-b11c-842a8c21f69f","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":"99df5f51-cd31-415c-8466-8d9a41b6795a","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":"6451f7a8-2952-42c7-90f9-b70f040e28f6","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":"d16bfc61-6b0b-42e2-815e-83086d81c6c3","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":42,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"432e5a1d-b8fb-4527-93f9-7b60ff691ed0","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":"d319b14e-b9af-49cd-b82b-76d7698212d3","block_type":"box","text":"II-4","page_number":42,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"b8c7d5bc-3265-4757-95ec-ec8ee1057341","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":42,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a846df56-1392-4031-bcd4-21943bf1a5ed","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":"9a8fd54a-07f8-4309-af2b-4e2c0d58229b","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":"afbab0c2-c5a3-45c8-9181-854e8e38fe3e","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":"c400dac9-c84d-446e-8c4c-c897781f2aed","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":"0038344e-58eb-41a5-aebe-32273218dd9b","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in par t on the","page_number":43,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"3a5f700d-fbec-467b-afcc-434ac08df94a","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":"9ae92f9b-6a2d-4926-8ece-cbac67a34f89","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditwor thiness of the issuer. With full principal protection,","page_number":43,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"3ff3741d-cf48-49e8-bdf5-7938c6e7a2d8","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":"49539fcc-9e42-4922-80b9-747bbda53203","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":"2961e533-39ea-4de5-9d09-a7c6d5fb4f1b","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":43,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"6f16ac62-5cba-4cb4-b623-fdd446f0536b","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":"35794917-f5a9-4ccf-8708-b3b2eae1932f","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":"9cce0c8b-f210-4b50-8b9f-8fd958b4d792","block_type":"box","text":"par tially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":43,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"651eeddc-342c-48c0-844e-16e3e9bc50dd","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":43,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"2a104451-414e-4b6d-bd37-e2a8be078a65","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":43,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"6e936802-b8d9-4eda-9b0a-40012d00cdf0","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":"ddf438b2-ebea-441b-a276-8d15ba93a3bd","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":"d4a46fd8-6784-4467-86e1-86e34156d70e","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":43,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"05c7150d-de2c-42ac-8c4f-db04106240f6","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":"e44fb4cc-ad6d-44a6-82b6-e5d682bda7df","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":43,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"611fa6d6-4352-4e23-8f17-dd66c15643d5","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":"cd72de54-d4c7-481b-b30a-03a3ddb25a5e","block_type":"box","text":"the Manager believes are relevant.","page_number":43,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"68e510e4-d46d-4275-abc5-341534b8f20d","block_type":"box","text":"Limitations on Leverage.","page_number":43,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"1f322dc4-025d-490a-accf-6a7c9726950d","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":"f79e6148-8311-4ed8-b7f7-bc2eb9a464e1","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":"154f4ef0-a144-4f50-8854-47f16c34d310","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall por tfolio. A Fund will not invest in a hybrid","page_number":43,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"4bd288b2-5842-444d-8827-27b6334558a4","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":"1644f13f-ce6b-4ecc-b5fe-ae97be762a62","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":43,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"8d54196b-08b7-4ad9-9f3b-e37078f868ec","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":"fcc3f43b-80ef-4d00-b5f7-27c8d01f86f6","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":"33b9d5c9-44a0-423b-992a-f1ed5528cc7a","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":"0da6f415-137a-4a34-8b34-f2d370220bf4","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":"0b4e8b52-48a0-463e-81e0-558a53bc4f71","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":"8d07fa41-0fd8-4aeb-82c0-75693ae0a1dc","block_type":"box","text":"variable lost 1% of its value. “Por tfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":43,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"17be28a2-0da5-42a0-8eff-eecebb03d3c8","block_type":"box","text":"instruments in a Fund’s por tfolio, weighted by the market values of such instruments or, in the case of futures","page_number":43,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"bc373606-df19-4ec8-8d0a-c2f22c4d3352","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":"5b7f17bb-d659-4dfa-85e1-75f5e73eebfb","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":"8cdbbc7c-4bde-4f08-8a1a-34f49d8cc88f","block_type":"box","text":"Counterpar ty Risk.","page_number":43,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"f611bea8-fdf4-4a08-bfc3-c69c28827611","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":43,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"2c6e39db-140e-427d-9c72-c23022df1c64","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":"f331f680-d927-412d-aac3-6d0e8c3ef336","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":43,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"f1499199-bd7c-4f50-b423-12e1470b1fa7","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":"a2794e36-e3a7-45df-b689-167faa827748","block_type":"box","text":"e.g.","page_number":43,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"e0783525-ebe3-4e3c-84a6-779221b84dff","block_type":"box","text":",","page_number":43,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"f64b10dc-ece7-410e-b3bb-4403a209d93c","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":"2a5e1e67-00f3-4c1c-949a-727c544517da","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterpar ty credit risk of the","page_number":43,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"aa2f576c-e5dd-4fe3-9cf2-a85ab1a1c7a7","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to per form its","page_number":43,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"b6c909c7-fdd5-4ee4-a39f-a1ed067d4ae3","block_type":"box","text":"obligations under the structured note.","page_number":43,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"4b4e003c-5ef3-49ca-ae93-317653070e09","block_type":"box","text":"Convertible Securities.","page_number":43,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"55003691-ec86-4719-a889-b4c6abc3a9ee","block_type":"box","text":"A conver tible 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":"9aa1500a-f908-4739-8c81-9caa3d37df59","block_type":"box","text":"may be conver ted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":43,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"0bda1c67-6921-47ea-b4d4-1bb418b3d6f8","block_type":"box","text":"a different issuer within a par ticular period of time at a specified price or formula. A conver tible security entitles the","page_number":43,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"dc10989b-d32e-42d1-99ec-c314554476f5","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the conver tible","page_number":43,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"0f7cb437-381a-480e-b792-680a3f5e357d","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":43,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"ba8ef5e1-67d5-48ea-876c-7bdacb5c5481","block_type":"box","text":"characteristics similar to nonconver tible 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":"90352b47-2d81-40c7-99d1-a8882bb0bcf9","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":"88c82c33-27a4-4703-82e0-d474741e0622","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":43,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"cddce796-4ef9-4445-a6ac-7b5aff39de94","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":"3ecc3cb4-aae0-4729-9b90-172767e28e16","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the conver tible security’s investment value.","page_number":43,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"2055e6ec-73f1-4fc7-b2ac-e2ffa6cc833b","block_type":"box","text":"Conver tible 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":"e460a6eb-00cb-49c1-8462-150647c50570","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":43,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"b60ea9ef-1b91-4631-a274-64cb4854c8d5","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":43,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"974ddfde-37bf-4bba-969f-0c3de8367923","block_type":"box","text":"II-5","page_number":43,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"5bee143b-c26e-4e74-bfb3-e9b10f56be83","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5ff34cc6-e23e-4c65-869c-cad8b6efeb20","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":44,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"c9ef7be7-14f0-484a-91a7-878b35aaf04b","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":"33c67d29-e406-4f19-9caf-15f9a747b4bd","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":"3255ca7b-0c71-43b8-9b03-0de20f532fca","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":"2427cf51-c193-4147-9fa7-1126d4f5e47d","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":"f382d1e8-adbf-4db2-9126-9313be89c9d0","block_type":"box","text":"feature, however, the interest rate or dividend preference on a conver tible security is generally less than would be the","page_number":44,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"a15ebe86-e214-4496-aa59-33598f968723","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":44,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"ccd4ef49-167e-41e2-8051-c002033ac66a","block_type":"box","text":"In analyzing conver tible securities, the Manager will consider both the yield on the conver tible security relative to","page_number":44,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"e377889f-37b7-4cfb-9d9c-77c667f1157c","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":"9fbd9c49-ae0e-40b8-82be-dcc635cab34e","block_type":"box","text":"things.","page_number":44,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"c5a4ca74-5c58-40c3-b69d-4367c5e95020","block_type":"box","text":"Conver tible 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":"e15b6189-4983-43f9-b36e-b43181b0791f","block_type":"box","text":"substantial por tion of the conver tible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":44,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"4462da5a-6f17-460a-b50a-c52fc749ef4a","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":"d9681a6f-52b0-43bb-a4bf-e76918e2ba47","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":"0bc5b64e-4998-4560-954a-1ab6561ceb1a","block_type":"box","text":"price is quoted will affect the value of the conver tible security. With respect to conver tible securities denominated in","page_number":44,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"564703ac-450a-4629-9124-1189d17e619a","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":"678bfba4-6e0e-41cf-8c10-918d1684330d","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":"6c4e891f-63e3-4186-a859-1f80991d374a","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":"54a87069-7987-4239-ab72-ed9ef446674c","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":44,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"74b0ce4b-cf2f-4ab2-8d92-534c40f37e12","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":44,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"bddb31de-e024-41b7-a003-3b9e0537ad28","block_type":"box","text":"nonconver tible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":44,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"0a6644c1-a659-4fe0-b0f6-5d8b0886357d","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (","page_number":44,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"7fe4c20f-433c-45f6-be82-a955fe39823e","block_type":"box","text":"i.e.","page_number":44,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"752343a3-e93a-4ab5-bd0a-b2eab356c5d4","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":"c7a5e544-5778-4fb4-a4cb-b7f34b4b2701","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":"a6ece918-f5a7-4850-b7b3-d1d88b353b8a","block_type":"box","text":"conver tible security typically will fluctuate. At the same time, however, the value of the conver tible security will be","page_number":44,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"9e2adf2b-f660-45ca-98f7-73476c5e009f","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":"dcb8969a-e17c-4b76-9a34-9805e4a5a46c","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":44,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"99a71b83-1005-4c46-b214-185cbf3012bb","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":44,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"2eb603eb-01ca-4c74-9d8b-7a50f63d28cb","block_type":"box","text":"the price of the conver tible security is governed principally by its investment value. To the extent the conversion value","page_number":44,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"d3ed5c12-f257-4dc0-a973-3f791225ebb6","block_type":"box","text":"of a conver tible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":44,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"1bad561c-5f37-4aad-9902-bda28e5aee6d","block_type":"box","text":"conver tible security will be influenced principally by its conversion value. A conver tible security will sell at a premium","page_number":44,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"26ea73b8-3203-464f-be17-893d7dedf072","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":"c27a4710-cf8b-40fa-a8fc-aa3abf0d9ebd","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of conver tible securities issued in Japan and","page_number":44,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"b5f48678-9657-4136-9784-528b4aafea5b","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":"c48cdc05-90d5-4c98-98c0-155fe645d5fc","block_type":"box","text":"than the securities’ investment value.","page_number":44,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"8cb9963c-8550-46bb-ae5a-876784f89b60","block_type":"box","text":"Holders of conver tible securities generally have a claim on the assets of the issuer prior to the common","page_number":44,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"3a2d4bae-d169-43d7-95a2-6915f63c2017","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A conver tible security may be","page_number":44,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"a60b3521-e6a0-4d57-a835-383cc39fe5e0","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a char ter provision, indenture or other","page_number":44,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"22c235b9-985e-4fc0-987a-90415cab37ce","block_type":"box","text":"governing instrument pursuant to which the conver tible security was issued. If a conver tible security held by a Fund is","page_number":44,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"e2422b3c-c3ea-419f-8c6c-3b3a9677830c","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, conver t it into the underlying common stock","page_number":44,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"65a96018-85be-4bea-8913-f9ffb614f572","block_type":"box","text":"or sell it to a third par ty. Cer tain conver tible debt securities may provide a put option to the holder, which entitles the","page_number":44,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"8d9f6069-c8d4-4665-abf9-50514b68aac5","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":"d08912b5-9efc-4012-913a-121ed818d61d","block_type":"box","text":"security under cer tain circumstances.","page_number":44,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"ff246be9-3ea0-42f8-a769-bc0bd0c800c5","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":44,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"155aaa70-cea2-463b-a3c2-9cc3a4458bd4","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":44,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"7906be7a-58ae-43d6-b333-7d4cb1f15f0f","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":44,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"b8828383-196d-4dc5-a58b-c0872ad87e76","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":"5dc674ac-70e7-4b33-be5d-e8d835c72862","block_type":"box","text":"issue a Cash-Settled Conver tible that is conver tible into common stock only if the company successfully completes a","page_number":44,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"7d0925f4-7862-4655-9dac-d6f0381a07b9","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":"618e5824-b8ca-41d6-a11b-6bafa6bbfb57","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":44,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"2abea121-c563-482a-adc7-6813dca57b9d","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security,","page_number":44,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"5865facb-d634-40c7-bf40-1f30fda16a46","block_type":"box","text":"i.e.","page_number":44,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"e4b927ea-f517-4703-a716-c932c7e645f7","block_type":"box","text":", fixed-income (“fixed","page_number":44,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"856bc57c-09e6-476a-92a7-6612440f1717","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":44,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"7c5177db-0e78-446f-b466-1156eb3a8a7d","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":44,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"9e493dc1-4f3e-425b-a89b-905b9e3ae336","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":44,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"a4a05e2d-b358-4b5b-bcbb-0935e573ed60","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":"ffbe4cd2-e8a0-42ad-afb5-07f88dfa8596","block_type":"box","text":"II-6","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"1306aee4-b033-4c54-8337-a802712f99f1","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"30f2835b-6597-47a9-9a72-fe2aeb71b1a7","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":"78b4ebe3-eea0-4755-aafa-94b4cd1db123","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":"9a9ea4f1-54bf-4835-8cff-9ae4a07d56fc","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":45,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"b374043a-940e-4e89-9dea-a32c8947e45e","block_type":"box","text":"conver tible security, which is a single security that has a unitary market value, a Manufactured Conver tible is","page_number":45,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"a5a567bf-c233-4c4f-bb55-be2665d1c767","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":"07030ee2-0fc5-4e1f-b313-72f2376630a6","block_type":"box","text":"such a Manufactured Conver tible is the sum of the values of its fixed-income component and its conver tibility","page_number":45,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"4be81f31-15ef-477a-bda8-68a942c7bb73","block_type":"box","text":"component.","page_number":45,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"b9e5a61b-a75f-4096-aafa-28d844a8f3e5","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Conver tible than in the purchase of a traditional","page_number":45,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"3cf160fd-2aa7-4bbe-b5b5-9ab56bbae002","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":45,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"e3efe128-6f45-4c01-8be1-4025c8c6c88d","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":"5a121b9d-ca3e-4c2e-9b18-c831000368cc","block_type":"box","text":"to create a synthetic conver tible 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":"bdb4fee2-2e56-41b6-abc5-9f98ed5f08a3","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":"e3497bd3-7695-48f8-89af-4254a2933d4f","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":45,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"54fb375b-aa41-4272-82f5-bb8da35f39e7","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":"04da9648-9aa2-47f0-9b8d-3d334f69026e","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":"7e1be8ac-7ba4-423d-96a8-1a2abb115d5c","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":45,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"4fd3fa6c-ac41-407d-8643-2d4f2cc1613e","block_type":"box","text":"security issued by that issuer. A Manufactured Conver tible also is a more flexible investment in that its two","page_number":45,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"bf1e679a-a7ce-4ad2-9b9b-4cfc25caaa1b","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":"0a0bc436-343b-431d-a8aa-2311dfe60f49","block_type":"box","text":"Manufactured Conver tible. 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":"b1cb4142-d2fc-405d-9a05-ea046ff516dd","block_type":"box","text":"Conver tible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":45,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"43c61675-e717-43fe-b297-4036b90575c7","block_type":"box","text":"favorable market conditions.","page_number":45,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"9baee8db-950f-4d6a-bb64-190171599dac","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":45,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"b216185f-12b2-480c-8daf-8945166ac77f","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":45,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"b92a3bd6-aaf9-4467-b3f1-bfdad5baef25","block_type":"box","text":"by combining a shor t-term U.S. Treasury instrument and a call option on a stock, the Manufactured Conver tible would","page_number":45,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"98afb140-2e1f-4579-bb31-6c88d9a1f894","block_type":"box","text":"be expected to outper form a traditional conver tible of similar maturity that is conver tible into that stock during","page_number":45,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"c771774d-2cae-4eea-8932-73f294e5b7ae","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":45,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"3aa76b4b-8f8f-4078-bf94-a3f65db6d7a9","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":45,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"986c235f-8a54-488a-b4f4-dd8351f4ad07","block_type":"box","text":"Corporate Loans.","page_number":45,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"a9bde21d-e156-4f27-9ca9-b5821c675fa9","block_type":"box","text":"Cer tain 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":"59d767c1-6faa-4e81-bb8c-53fa12bd3e66","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Cer tain Funds may invest in","page_number":45,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"2c56eb76-4f5e-427c-be3e-0a3989721dde","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":"bbd41f95-5eb9-4b47-bb69-a267a9743784","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":"864826f6-8c4d-4d4c-b969-fd4a4e5bc095","block_type":"box","text":"in such Loans in the form of par ticipations in Loans (“Par ticipations”) and assignments of all or a por tion of Loans","page_number":45,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"15f52aef-ce96-4725-966b-208e59dd74cb","block_type":"box","text":"from third par ties (“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":"9abff054-8942-47e3-abcf-567735a8a4c3","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":45,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"37fc1dbc-5e09-4130-b990-fa5c05826531","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":"cb1ed22f-d11c-4bf1-aaf2-6611188cabc4","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Par ticipation and only upon receipt by the Lender of","page_number":45,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"3917e611-3972-45d3-85e6-8010cb761762","block_type":"box","text":"the payments from the borrower. In connection with purchasing Par ticipations, the Fund generally will have no right to","page_number":45,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"81f1d9e6-0a77-4f6d-b465-3aaf35cc54db","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":"d23a460b-f0a2-454d-be7b-6c25411c9253","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral suppor ting the Loan in which it has","page_number":45,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"7cc59d3b-43d1-4824-8a57-969cb27ba1fc","block_type":"box","text":"purchased the Par ticipation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":45,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"28151e51-1179-4ea9-b4cb-ea36a7411425","block_type":"box","text":"that is selling the Par ticipation. In the event of the insolvency of the Lender selling the Par ticipation, the Fund may be","page_number":45,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"c91d0a31-2a3b-495f-ae0f-c7311d813ab7","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":"78d65d42-e10a-444f-b21c-192a202fb172","block_type":"box","text":"borrower. The Fund will acquire Par ticipations only if the Lender interpositioned between the Fund and the borrower is","page_number":45,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"b80fef83-5a3a-4c71-b450-13b1bac3510f","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":45,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"0cd0f3fc-1389-4e34-bab1-177fdb456f3d","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterpar ty’s credit","page_number":45,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"1a8df170-9ad1-4bd7-880f-92984c970cc5","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":45,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"e841df3b-299e-4e7e-9fce-40bec841be42","block_type":"box","text":"whereby a Fund would agree to purchase a Par ticipation or Assignment at set terms in the future. For more","page_number":45,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"4e51cd27-3385-43f3-a915-87d5539d9cca","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":"ffaa6488-a540-426a-ae72-24f5ddd25574","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":45,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"4e534e55-1cc9-41a0-b5d9-4c359a838ddc","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Par ticipations. In cer tain cases, the market for such","page_number":45,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"af353f6d-2d06-40a7-a24f-beb118ab0fbe","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":"45af5c5b-f9b3-47d9-bef5-b313c040a5bc","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":"1fce3d62-2946-4e79-b845-6582c750e3cf","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of par ticular","page_number":45,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"f73d2011-d47f-4591-bcc0-7e364ac99404","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":45,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"6713114c-1f00-40cd-b681-682653cc33c7","block_type":"box","text":"of the borrower.","page_number":45,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"4966a0db-2022-4255-86f2-63cb1034aff7","block_type":"box","text":"II-7","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"a0e8c68d-1aac-46f5-b4a2-64ca06b41741","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"700cccd6-8fcc-4630-8dfd-91c952cf4b85","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":"de810e71-d98d-4d67-8e3b-dca1cb8b6bc0","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":"49940f77-6317-4a08-961a-e9fd9ce4b01f","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":"246c9a37-650c-4d23-a468-02bf15774055","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":"f7a65b7f-fb1b-48af-a02e-ab1e80d40b48","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":"f33fdb8c-0f69-486e-a176-2ed420c6f800","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":"5dbda80a-a57f-4540-b421-f469413faab7","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":"3095ac49-ca0e-4f0c-91b6-5bf128c32d1a","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":"d43d9ea6-e1e0-4dc0-a70d-249a8d9ee884","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":"1bad131a-405d-4e48-a4d8-397d7657500d","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":"a3d6227b-1580-453d-a4c1-f884c0eb3255","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":"1a251512-6498-4e56-8182-485d9cb3449b","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":"1ad71053-ad3e-430e-9a10-3b7d3276f870","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to shor t-term liquidity needs, a Fund may hold","page_number":46,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"e5be6157-ed49-492b-a395-806ebb7dc3fb","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":"549c2c29-0371-4ba5-a064-08002cac3cd5","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":46,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"1452642a-37f3-4ba0-b675-7a123b08a1dd","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":"a9932d73-5699-4b0d-9608-f56da0c4d7a2","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":"1741db2a-7499-4575-9b0b-d84f368541d6","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, par ties generally would","page_number":46,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"1b83167e-431e-4cf4-b3b6-56e1e9d2ca46","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":"182ef22a-348e-4564-b54a-04ed7c48509e","block_type":"box","text":"state law.","page_number":46,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"b7ded9ae-6587-4424-80df-0c9289fca22e","block_type":"box","text":"Direct Lending.","page_number":46,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"c35a89e6-6264-4805-810b-2c1c834c2270","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":"49ddc9b9-6712-47fc-9ca1-ca1631f7bfac","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":"e6e052ca-6011-4aea-9656-4c84c70bd0ba","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":"f7711ac3-58bd-413e-bc3c-3c48b5b3088f","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":"790d42df-8658-4eb5-b0b7-e91371a3379d","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":46,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"5eb6b36e-5c02-4dfc-836f-076c1079ed1e","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditwor thiness of the","page_number":46,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"038482e6-14b0-4ad6-9081-3d1b86aaad16","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":"1b14d15f-0974-4f1f-b4b9-8ad04a2f6e5f","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":"e7cff9b7-6fa6-4585-98f8-53fe9343e5d6","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":"68085463-2e70-4e21-92a2-82ab974150ed","block_type":"box","text":"money on the loan. Fur thermore, direct loans may subject the Fund to liquidity and interest rate risk and cer tain","page_number":46,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"060c35b8-346c-4143-b870-b03238ef2091","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":"5074a88c-0853-4078-b60d-765e18d773fa","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":"7b68ce53-e613-45db-9fd9-68a725e01bcc","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":"24c0aa58-fa61-4a8b-9f6a-51886a650808","block_type":"box","text":"When engaging in direct lending, the Fund’s per formance may depend, in par t, on the ability of the Fund to","page_number":46,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"6d378773-c8e1-4308-bbab-16041608dd6d","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":"b7d9a6fe-0215-4a24-9199-65fe686dc5d2","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":"208358c1-e0b3-4bbf-ab62-0f8717e12ec7","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":46,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"d8d100a0-02bd-404a-9932-48d5c31f8031","block_type":"box","text":"As par t 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":"5a2b68ea-a43f-45bc-8c45-a1f0b62e4a61","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":"aca2d374-7164-43ca-9222-b39c92b6de61","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":"935446ef-1847-4f5b-a847-33bb23cb93c5","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":"334ca605-07e2-44ca-a8e6-837f8ef75040","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":"156a0d14-b7a4-42e8-8be1-e1af68b4130b","block_type":"box","text":"Credit Linked Securities.","page_number":46,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"2a70ae06-3ffc-4ba7-9898-8904b47fb874","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":"5662486e-7344-4c64-8464-354dbf658a13","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":"5d3bb5b5-0ce6-4bdd-b30d-810c7c75fd53","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":"e24c198f-b562-4b84-985d-77c8d65e263d","block_type":"box","text":"to provide exposure to cer tain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":46,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"a1d986d0-91bd-4a40-8660-609d23cc54c7","block_type":"box","text":"cash management tool in order to gain exposure to a cer tain market and/or to remain fully invested when more","page_number":46,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"5777d6da-73e2-42d8-ad3d-1a02258d1d5d","block_type":"box","text":"traditional income producing securities are not available.","page_number":46,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"6e7de876-2e1e-42b0-a5b6-0d92c3210041","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":"59d8e0a5-07f9-4673-b2c4-272eaa5bb418","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":"a6c79a4f-92a0-4319-b0b0-aa19ee20fa28","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":"56cd2746-9d74-4b32-beb0-8cc7e580783b","block_type":"box","text":"obligations to, the counterpar ties 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":"e2916953-1310-4f55-b6ca-7fec7014da61","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":"656f3637-5ded-46b5-8cb6-cf0cbaf2dfb1","block_type":"box","text":"II-8","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"27195050-bdb7-44db-990c-48fe25cbae4d","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8a998aeb-1b8d-4a8a-8514-487397edc19b","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":"931b5574-d4fd-4e4c-8b5f-1776d1bf2757","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":"bb23db29-aa57-4f08-b185-473b667fbc0a","block_type":"box","text":"the issuer would be obligated to pay the counterpar ty the par (or other agreed upon value) of the referenced debt","page_number":47,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"73ddcd0e-953d-4e21-bf11-0e853fdc66f9","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":"4a94ea25-2216-420d-b885-8789d43bd174","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":"4500d23d-2012-4584-ad65-d9c158951541","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":47,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"dd13669f-0579-411c-88ca-4106ae511750","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":"8a0bd8a5-f5b1-4477-920f-1a6b9fa91618","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":"039f9a1a-c120-4d54-8d00-6b0ac46c30a3","block_type":"box","text":"investments.","page_number":47,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"52743e47-5377-486a-954d-31ba0f53790c","block_type":"box","text":"Debt Securities.","page_number":47,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"4aee0d0f-ff08-4c70-b27e-8bc276f0122b","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":"fd1a757a-f77a-4d4d-8782-197285380cbe","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":"5a4de1b9-e71a-45c3-bb54-f5cfcdca891f","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":"f964556b-d5e8-4a97-8b7d-d20a5115dc23","block_type":"box","text":"creditwor thiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":47,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"b87084c6-4f79-44bd-ad01-d7e285dc122b","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":"e0c69029-78dc-4a36-80e5-1ee1289dbcf5","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":"801e4f0b-cd92-47fa-b6df-1791e0923352","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":"dbac5efb-38f3-4abf-99dc-a63623ce8dd2","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":"66094b19-374a-4b4e-b3f4-f6a1e0f4d5e0","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":"9c4f201c-ca79-4038-ab4a-cfa85569755c","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":47,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"9ec04eab-ebdf-415f-af51-32778307b52c","block_type":"box","text":"During periods of rising interest rates, the average life of cer tain fixed-income securities is extended because of","page_number":47,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"18732d08-8c2b-4908-8fa1-0f417d04465e","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":"ec74152b-0ff5-4250-8509-dc2070babd67","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":47,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"33ae373c-e88e-4570-b5eb-30126102c9c7","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":"8bc57acb-c614-47aa-85f8-037ab3e8b5aa","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":"9101d9e8-2fb9-4f06-8a4b-0ac0f09f75c7","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":"45b2cb13-645b-4b8c-bbf8-c4e6ccabea16","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":"b90aa705-deb8-4c1e-99f2-cfe0b1f81551","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":47,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"fe50175b-20d2-4169-a1db-28c9f8962794","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":47,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"5592932b-479b-480d-9fc7-83224549898a","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":"56bc89ee-4dc7-46c8-a6db-8c96c2f6a5a9","block_type":"box","text":"Floating and Variable Rate Securities","page_number":47,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"0f14cd8f-f2b2-44b5-8ee4-e52d9dcdb1a0","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":47,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"a5d95cf1-5a3c-4697-a239-37d65669d1d4","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":"16247a8c-e9d6-4c68-9605-5462dda64f04","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":"1c9e1808-8bc4-4aa9-b64f-1d1ed62bf90c","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":"cf239d6a-4aae-4d6a-87f2-88709331c1ec","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":"7507ddf7-9b06-44c6-83db-fccb99457557","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":"9c9b306f-aa14-4832-a732-9bee54b75d46","block_type":"box","text":"market interest rates.","page_number":47,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"b4209620-e1a8-4c51-88bf-521f74c76465","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":47,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"6c8c2c06-7936-49d7-97bc-d6865fd3064d","block_type":"box","text":"Cer tain 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":"b49cdd6c-f9a4-4820-861a-141a3d6535ea","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":"4d5a76ba-d636-4b7a-8429-45a13d750de4","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":"f70128f5-6a57-4ea5-a80f-e50866aef637","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as par t of a semi-annual coupon.","page_number":47,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"04c7ae95-f42a-4f1f-828b-303462ae43f0","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thir ty years, although it is","page_number":47,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"2f0354c0-7935-453a-8c79-a2d7183d7c78","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":"ae6aa19c-2cd0-4904-bfda-238e6c0492e7","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":"b7642145-01b9-4320-b59e-a581f4167fdb","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":"6846e66a-e0ef-4e5c-968b-38d307178e61","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":"044e90ec-374c-42e2-9424-ed50a85471ab","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":"06ad9398-c208-4246-ab56-98441beb8f26","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":"534abc4b-d191-4f76-acf9-15aedb9c3b53","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":"70a1a9a7-2978-4595-981a-71c1a1a124a0","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":"88d0e2d4-c880-4415-bc10-5877d2160863","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":"ab11234d-c945-4c4b-988a-123e099ffd05","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":"f1d04889-f811-4f9e-9a78-5f1ad27bf1ec","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":"54864995-46fb-4425-83d0-3a0e181eea47","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Cer tain Funds may also invest in other","page_number":47,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"e1d4612f-d5a9-4ace-82a5-1603ba135a7d","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":"b20db6a2-8797-4085-b34d-7cdbc01bf1dc","block_type":"box","text":"II-9","page_number":47,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"c9a1b058-ff74-4fdc-b7a4-299749c95fd7","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b5486601-cf55-4989-ab8f-19028930d1a8","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":"8a648769-d033-47e7-b343-ca4acf9a07cb","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":"060d7ab0-3e26-400c-ae00-23bbf33d8d6e","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":"d8e93264-dd6e-4a1b-bfaf-4ec393cac8ae","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":"07968474-0002-49f8-8abe-e482a394fbee","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":"2560be38-afdd-4e20-a73c-c5796916bc90","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":"50a8161b-f2be-412e-94d7-d0b652ba7ab3","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":"95d950d6-de16-42ef-b1b6-ee8d998de9fd","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":"55bb5db5-faf5-4739-b3e3-59075dc3fc76","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":"fbe7345e-6c18-4c74-bd3c-326c91f938fa","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":48,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"a846d10a-ced7-48cd-9c85-01dba20a521e","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":"6958afcf-9ba2-4adf-a8a4-c7ebf023bc14","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":"eff3ac5d-bb23-47bd-b193-f5a611866f1d","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":"d130c1ff-508c-4727-a2d5-6bb402c9bd23","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":"69fbf3e3-9f50-46f8-a614-e3bde782c6d7","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":"7361feb5-4017-49cb-ae20-1fa9e6768fdf","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":"5b61f07d-d521-413c-86cf-3e4597fda54a","block_type":"box","text":"food, transpor tation 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":"53e70ff1-7049-4dd3-9f7e-8384e644e1a6","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":"d50644c1-24e7-4182-b853-c72b7234acca","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":"ea82c159-a5cf-400e-98f0-fd77ccd1de1c","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":"e8d1d82d-02fb-41ae-aeae-3817cbf04627","block_type":"box","text":"United States.","page_number":48,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"ae3f42a3-e480-4143-ba53-9d35348e130e","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":"dafe633d-4706-4251-93c7-dd80bd30062d","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":"46a52f88-dd04-4ddf-b84a-37624b827054","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":48,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"145cb734-4651-4604-85f5-677c999aaa75","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":48,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"891f5602-6edb-4e03-a775-ff3ab3525fde","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":"601fbab6-639d-4dc1-ab6b-8b08bb24a131","block_type":"box","text":"Manager. Cer tain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":48,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"2c321292-c910-4043-8b7f-3222188f0d94","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":"9d4483fb-722f-4813-86f9-da63fef35687","block_type":"box","text":"i.e.","page_number":48,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"669766db-9618-4a29-b39d-caffc6ddf102","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":"b47e6c0d-1643-4577-a65c-f37f16c08aef","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":"d8ab9d0b-30f7-44c5-a531-60c82734dd9c","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":"aa2ffc57-f1c3-4589-beb1-d4a24706b5b4","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":"f83b0e9a-0d95-4a36-a038-050c68ea4f05","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":"90ea003e-2df8-4699-934c-b5840643fb03","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":"7f85a4e4-efd7-48a8-848c-1aae3c624fd1","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":48,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"6eafec03-eafd-4a7d-8994-29f25d0b6353","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":48,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"e1166710-030f-4762-bbba-fae38a24eb4e","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":"02f6ec32-d63a-41b3-b35c-90171fb5efd1","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":48,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"4e01d0c9-c99d-423b-baa6-39747437c6f2","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":"8573ed30-6d00-45ca-ba09-62c347874147","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":"81190deb-36ee-4217-8128-e22467f9675c","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":"8508eaf1-2030-449c-b5a6-3963613fa889","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":"026c2aaf-66c7-4772-b752-796fd2f0ebcf","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":"39b2d8bb-d699-41a7-a4b0-a652aa49eb6d","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":"50c1000e-7f6e-48df-a1cb-2b2b717a2782","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":"548dd5cb-65ca-41fd-9b60-1aab1c368561","block_type":"box","text":"risk than higher rated securities.","page_number":48,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"4a200acf-6edd-41ca-b81d-b11a7bf5ab87","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":"208f6717-3d53-4700-ad76-771ba061b8c6","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"677b7b46-0790-46b1-a051-72cded3b2e37","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":48,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"78f7ff93-3482-4a9f-b5ab-7accffeeee88","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":"dddcdbea-799e-41d7-9fcd-807678d08c00","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":"219b494b-2012-4d58-8328-32c946404b0b","block_type":"box","text":"unavailability of additional financing.","page_number":48,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"313c0fb2-2f12-42a5-a85f-a28cb2fae2a3","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"9fc78420-f078-4a63-8937-6e0a3e4b6059","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":"b0dd09c1-fa04-48ef-8966-b461bfaae240","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":"62540e50-e9eb-441b-b34c-c5bb382f0b02","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":"de2fe4b3-1e75-4e5d-8e34-9e346c229512","block_type":"box","text":"II-10","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"11f5eaff-f759-491f-a7b4-9f8500603645","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"29bb3a18-cc72-48ec-a175-498f8126bed0","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":"774b2276-c19c-4ef4-8abf-d1253354a744","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":"7030fe14-7c15-4821-855d-9d0c4e22b34b","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"1e683a4f-fb66-4dc6-8699-4b387c4e5c93","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":"1db49403-d22d-4f65-8d9e-f575600a5e88","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":"6bec3d50-b17d-4db3-8f5f-e00088391732","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":"cdb5ef52-7cf9-49e7-bcb4-2007cd3d876a","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":"d29512f6-0bb6-493b-a0fe-24dea792fbe4","block_type":"box","text":"investors in higher rated securities.","page_number":49,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"2e09f25b-1765-4346-b8d1-0f9d9a48c902","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"a4c9d062-f057-4f63-af50-7f301b738810","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":"4d945a06-a419-4f67-8041-29c0d75e5865","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":"62822ad5-887e-4c63-91bc-8b1f64fbcd0e","block_type":"box","text":"lower yields and may lose income.","page_number":49,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"4869be81-340a-4d3f-a295-132355c2fb3a","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"52a46fc5-afb6-46ce-8cb7-b3c045b352e6","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":"05d45573-60f2-4152-b953-5c221967cf48","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":"762883a5-2d83-4dfc-b778-04961e9c9ac1","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"aa167515-1c82-4db4-bf3c-6bfbdc8a54ad","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":"d3d985dd-721b-40dc-b0be-4e416e0353fc","block_type":"box","text":"Under cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield","page_number":49,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"d802f4a0-7242-45b5-817e-fff3493119a1","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":"f0805e3e-0c90-4086-9c4e-8e1483be0ed1","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":"ab0c048a-f6fc-4bfd-99d0-3f100a2754ea","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":"998e1901-b7f7-40c8-b0de-36b770cfd407","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing cer tain of a Fund’s por tfolio securities","page_number":49,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"23ee076f-d2f3-4505-b27d-5e2f09a89407","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":"6fc50f3f-1160-424b-8bad-e3fc0d59843c","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"6a845684-2f8d-4790-b293-e85b3ffc668b","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":"45c793b7-dbfe-409b-8dd4-377466d8418b","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":"bf46f18c-0cd7-449a-8efd-7f698f9fc3c6","block_type":"box","text":"par ticipants 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":"f9723d41-3581-42d0-bb2e-a5b38d4bb9ec","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":"48e19b8a-564a-4c83-a322-8f9ec464df21","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":"92c00826-2966-4076-8f2c-f75fb8a2e362","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":49,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"cfc54bbe-197d-4348-8ed4-3cbe5dcefaf6","block_type":"box","text":"cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield securities","page_number":49,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"4be18841-37bf-4f9c-ba34-11c22a462219","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":"81cc7ed7-0823-4817-8463-3c26125653bb","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the par ticular","page_number":49,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"6bbab359-a696-46ad-87bf-8beb3db9f120","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":"44418f0e-7e0a-44c7-966c-72f596dcd9a1","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":"759598a8-e8c9-41c6-9c19-ba1fb5f4568c","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":"06441829-cf95-4063-884d-a5617e3df8c5","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":"8127bd30-6f8d-4500-b422-3b0d9f8012b6","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more impor tant","page_number":49,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"c2563e81-0dea-42b5-89b1-f9e9663a9af5","block_type":"box","text":"role in determining such valuations.","page_number":49,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"2d5d0622-b2b7-41df-a6ab-07443b173076","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"de3dcd1a-73c2-4016-9d66-a6763422f05b","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":"10cd9020-960e-4e70-8f75-ea59db982976","block_type":"box","text":"a defaulting issuer.","page_number":49,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"fca7b759-3c3d-4a2b-a0d4-7d4db95adfde","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"53082914-7325-4471-8cb3-07fbb6b16d18","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":"2131ec84-cb62-45ce-84f5-129cc974e36a","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":"ce07f1d9-5ffe-40b7-9bb5-d4e93c66a5f8","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":"876898f4-0a43-4727-a6b4-d9cf037e4c7c","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":"fb67e20e-0874-4fc6-ba10-b0f4bc8b80ed","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":"fabe889b-8db3-4ba1-9eb6-42fa68061111","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":"0c627886-c01e-46f9-ba01-f3211523b328","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by cer tain","page_number":49,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"7573ba06-8009-4e5b-8254-cea55d470a07","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":"cbe5e575-ca4d-4524-8d11-39a72dbff503","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"33c99c75-5079-4e8e-9927-7b022c752fe6","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":"4da88f85-4d30-4bd7-ab63-6d7991d23de7","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":"7ff655a5-bfa6-4bcf-a2fc-a6d0dd8075ef","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":"0816a80e-30af-4fc8-b49b-5a5a6eb61cb2","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":49,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"928e5271-6ff3-4e31-b847-a3c9b030ce2f","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":49,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"4605e0f5-5cfe-4b3c-b53a-5a306be974b9","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":"653cfa18-caf2-4127-abbe-9134bf67d0d8","block_type":"box","text":"higher-rated securities.","page_number":49,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"617829cd-46ac-4917-8d92-41c204027e94","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":"30345102-7c34-4566-a080-212ba9a26ae8","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":49,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"ebb882fa-4fa8-4586-be8c-8f0f727cb85c","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":"13712331-2d97-4cf1-82e0-28de5fbe04a5","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":"0882ccba-b641-4836-9aa5-1639d5752526","block_type":"box","text":"II-11","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b2838de7-176b-4d21-89cb-ac412d4ec580","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"257c941f-aa23-4484-8ca9-097f2637acea","block_type":"box","text":"well as in an effor t to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":50,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"f704f50b-71eb-4ff2-b618-0ab2b8ae898e","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":"01fd9bab-4acc-4acc-83f4-7042c92e35b0","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":"68d320b4-f7eb-42b6-aa76-54aabdbea337","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":"2f473503-632f-4932-be2d-fa7c79725de7","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":"e77e389a-3b96-4945-ae9d-3d5bc5787d8f","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":"b1073280-5efd-492b-9c76-0fe7cac24fd0","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":"bbbd205a-c565-4b4b-8530-515a6ef4a0aa","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":"e718dd3a-0967-4d1d-a9ed-89f41a3c2b9c","block_type":"box","text":"Mezzanine Investments.","page_number":50,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"ace5ffc1-75ca-4a0b-a0f6-8779932d116b","block_type":"box","text":"Cer tain 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":"c9f9825f-a975-445f-ba94-ca3faa0fcaee","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":50,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"b88e522a-d370-4e61-a0c6-1d6710fe45e9","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":"f8543ad3-393c-4aed-970d-8c2720d5385a","block_type":"box","text":"e.g.","page_number":50,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"e7288bea-6d46-4d32-b38a-1ec7ad082fe0","block_type":"box","text":", with","page_number":50,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"f05a212e-0d6b-436a-831d-85628851c773","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":"d3ce3f22-838a-48ff-ab2f-97c44f5a28a2","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":"43b58497-cd4b-442b-8ef3-639e365fe99c","block_type":"box","text":"life is significantly shor ter 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":"ef132a74-ab08-4eb2-843c-bd3f8bb77d9f","block_type":"box","text":"other obligations of the issuer.","page_number":50,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"aec52da1-0646-4bbc-8c89-a40085c6c593","block_type":"box","text":"Pay-in-kind Bonds.","page_number":50,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"944bea31-89a7-4054-95c1-a360c9a6070b","block_type":"box","text":"Cer tain 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":"0f8a36a8-3666-4607-ac4c-b42a45d9c63f","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":"5f7874ee-e536-47f0-bce2-0c974300e2b0","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":"b2cdc71c-81c0-4f9a-a5d8-8d5d042fc74c","block_type":"box","text":"unless a por tion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":50,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"acb8061f-27c7-4bc9-8702-4142e7517d28","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":"c72dd8af-fe55-43b8-8ecf-cb35d14114de","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":"1f67e38a-582f-40a6-907d-f7ea321abfcc","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":"fa96fb13-89ec-44f0-be5e-102d65baf90a","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":"9716ef30-1f58-483b-a152-da820b9a5398","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":"e1074b70-b39e-4558-895c-21b973b4d6b3","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":50,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"a16781fc-4ca3-465e-8335-589a55cfdca2","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":50,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"3933edeb-0567-4ca5-be95-db01d808a957","block_type":"box","text":"Supranational Entities.","page_number":50,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"6b8f6f91-ae65-404d-8ad2-221f50d1b8f0","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":"9ef4bb23-451a-4c28-8700-c707ce0fe14b","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":"1db2643a-86ee-4eac-9da4-dd251fd414f3","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":"9c7c0743-a9d6-47b6-909a-5a6684c17574","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":"df6e2081-cec8-49d6-89ea-f250b6d49e7d","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":"49232a53-98a3-4336-b9cb-a2c71ca11a01","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":"405a0759-1587-45ca-b2ce-b1ba6e795702","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":"0a0563d6-237e-485e-b2bf-299927cecdae","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":"d1d3b049-7a91-4734-a41d-a79cab1ace21","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":50,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"060882aa-62e9-4d4c-b99f-bb564b53fc09","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":50,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"e90ce247-c584-40fc-a958-c1d6d0a14ff9","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":50,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"d3dfba4a-4414-42ad-8f95-55b423de8c3f","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":"2cb95ec4-f63e-49e9-b60f-0dfb9cfd5016","block_type":"box","text":"conver ted. 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":"80e573d6-a5d5-4797-bee1-f23ed1876df6","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":"b622720d-4257-4f06-8046-d894b3de7820","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":"a9e4651c-7f71-4b29-a274-f55b9eedf104","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":"19638978-e980-4b19-bffc-7e4ee4727da6","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":"9547c083-d030-4d3f-95e3-c59bfb217f76","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":"aca38f4b-9c41-48df-ba31-2805540ef51c","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":"d8de94b9-114e-480e-a697-28823e0642c1","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":"769b7b80-c7d0-4692-a81d-81d2701ea088","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other par ties with whom the depository bank","page_number":50,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"64bdf467-6ba2-4677-bb3f-3a91431f1c1d","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":"07a92bd8-2085-47db-9fb9-1969f69978aa","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":"7dec2e6e-0e25-41a3-aba2-d4a821cd54e0","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":"403690a6-3371-4c54-a417-c83d37fd3213","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":"0f08747c-dfee-47fa-9aa2-063fa2d54467","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":"068ac2b5-3589-42d8-bbad-4bd7955524a8","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":"4d087dc9-def7-4727-a245-9e8625e8608d","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":"1a8dca47-93c5-487a-83fb-f08ac725421f","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":50,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"6851f5de-367e-469a-9fe8-5b2c14bac7b3","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":50,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"a90413ae-928f-4922-86e7-dcc5e1ebc872","block_type":"box","text":"II-12","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1d202506-6b27-4295-b9c1-a822596f2382","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a30c5924-a289-448d-9d1d-6207d2f9d63c","block_type":"box","text":"Derivatives.","page_number":51,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"a68fddae-c85c-4adb-9b78-8d169fb68f3c","block_type":"box","text":"General.","page_number":51,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"50cc69ce-eaef-4d52-95de-e762f160b9cb","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":"9ec2afa2-0595-4ed0-97a2-7576b557cad3","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":"02bfb251-1ece-4cd8-b133-e67b26657fc2","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":"ad2e39da-2b29-4e80-afc9-184e6876f85b","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":"1bb04159-c326-4a1c-9b9c-f4611c7202c5","block_type":"box","text":"efficiently than with other transactions. Cer tain Funds may use derivatives to maintain a por tion of their long and","page_number":51,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"50985dd0-1458-4346-a63b-ebbeb25028d8","block_type":"box","text":"shor t positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":51,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"71aac124-3be5-4afd-849a-17f1aa8d5c02","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":"39ba68a2-efde-4250-b18b-c062411911d6","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":"a7e02860-7c78-4b20-b8a9-3706796301f2","block_type":"box","text":"i.e.","page_number":51,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"a1db31e2-1bd3-45d4-8caa-f1ab00d6e282","block_type":"box","text":", the payment","page_number":51,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"5fd905d8-d438-437c-9e90-a74732a58ad1","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":"18e0edd4-eb59-45d1-bf2c-eafc165d9825","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":"a96d17d7-178d-47e7-ada9-b3fe5349d0a9","block_type":"box","text":"Hedging.","page_number":51,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"64e2985e-bb54-4d43-b6ad-b63e3873564c","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":"7749151d-84d2-4be5-989e-db04fed20ec4","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":"2e55b6e2-67f6-4c67-b34c-f777788325c1","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":"dad7512e-b04a-4a4e-8db0-d45c42de8b27","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":"a9aeb359-754c-4cb0-ba1c-9ed3ba95ea2d","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":"17cf9414-4501-4e0e-bc50-625f627481c8","block_type":"box","text":"correlation risk,","page_number":51,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"b55b133a-19e8-4e62-9a4d-bd5b0660839b","block_type":"box","text":"i.e.","page_number":51,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"ba103149-bd5b-4ee6-ba24-f9b2adb3cca4","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":"10177634-0321-426b-90c9-6451409c5b30","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":"2e470ec2-4822-4cc5-9611-249e17d0624b","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":"b58b1006-08eb-47ed-9b91-4004941f99b9","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":"9e465b76-af14-4871-8896-ae1f8e85b7f5","block_type":"box","text":"Speculation.","page_number":51,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"ce3d9678-2c82-458b-8d0c-cdbd76f5b970","block_type":"box","text":"Cer tain 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":"f89efecb-c086-4167-a38a-d28187196b3f","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":"555c5028-e896-4039-83a7-3c083f09d362","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":"b4afe6de-e765-4bfc-8694-919b17ccb88f","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":"2a0b72b9-d19c-4914-bec1-85a8132db7a3","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":51,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"5f85bae4-b36e-43e7-ae94-af16b7d35e18","block_type":"box","text":"Regulation of Derivatives.","page_number":51,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"4e3ebfbd-a60c-4437-aea4-f66874434a11","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":"94b4ca93-796e-4973-8e0e-c20d2ced8d0c","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":"7f79ea4b-a9eb-46be-a5da-d0bc27d693cc","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":51,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"35d749fe-361f-4a7a-9cee-1ff36152043b","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":"21e856cc-c79d-48b9-a2ba-16ba5809437f","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":"dadc0fb7-e363-445a-924b-2e6146e8c56c","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":"7d426b75-eb64-4451-bc88-919b1d33df88","block_type":"box","text":"coverage”).","page_number":51,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"f9ad9b47-25bc-4d3e-8700-d9a771590040","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":"bec55075-c286-4cca-a178-ec52b4cde115","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":"f75c00d6-4b16-409a-846c-110c56fdbfc8","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":"ec62caa7-1bb0-4f68-97af-a6b66973ce35","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":"ec01ae9d-e0a2-4754-9f85-1eb9230d13a2","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":51,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"767e8910-8b2f-4401-a9a3-177da73762c4","block_type":"box","text":"financing transactions (","page_number":51,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"0387c54f-b263-4eae-900f-2931a36a9351","block_type":"box","text":"e.g.","page_number":51,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"b05bf119-8bdf-482a-a667-8b798b17be25","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":"e2f91d41-f24c-4d31-a911-d8dfe749be4c","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":"8b94a4c6-9eef-4dcc-8d79-973e355033f1","block_type":"box","text":"securities (","page_number":51,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"62b6e852-0836-4513-939f-0e4850ace87c","block_type":"box","text":"e.g.","page_number":51,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"c56397ba-f9ba-4f94-922c-48b8f38ccfd4","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":"2c1f763d-f96b-44e4-bca4-f07c28b9dc34","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":"c36d1997-9f72-4081-9665-baafb5da6ffc","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":"52945185-e211-4e72-949c-db0914f2dee4","block_type":"box","text":"Commitments”).","page_number":51,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"526f4a24-48fc-402f-940a-6e018464ecb1","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":"04276df0-0c92-4abb-af20-f184f0c018c0","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":"ac61132f-89ad-45ba-ac05-ee255225b210","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":"ed8c4cdc-8afd-4512-a9c6-ad3d96ce2ca8","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":"ecccbef6-98cc-4fa5-a3ea-c6f4fb1134ac","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":"a22f7330-8ee3-4751-a715-e230e3c45987","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":51,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"47798d64-0b86-4610-94e1-281c801f5707","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and cer tain other requirements if a Fund’s","page_number":51,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"534b0348-bb6a-4896-9f9a-0586e006147f","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":"19193ca2-70ef-4d10-9fd6-4a188e1542ce","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":"3b880216-3165-4230-9c4b-2383695a5265","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":51,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"f06a9c7d-c45b-448e-a87d-0f827d29bc6e","block_type":"box","text":"II-13","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"893b617d-6abe-4d93-8bd8-6df2984f9b33","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3bd81495-96c8-4020-aa3e-33368dfbf58e","block_type":"box","text":"Dodd-Frank Regulations.","page_number":52,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"2f9a02c9-af32-4dcf-a3b4-c149d36f061b","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":"9724dd12-09bf-44ef-8b1b-0e9e6882a583","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":"c726a88b-d51a-45bc-9220-9067dccddd5e","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":"00c41cda-0364-48f5-86aa-b6619c06247a","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":52,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"0bec2426-36a1-4a4d-a268-bc61feccab3d","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":52,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"969aa120-9e87-4bf0-87d4-3427b80704c1","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":"8969d85d-f17f-4cdd-bfc5-b38e34d0fcc4","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":"f4f02356-0da5-46dd-889f-aa17643b7ed7","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, repor ting, transparency, position limits,","page_number":52,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"ea4b356f-c65b-4353-a74b-97b58f170cdc","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":"1a6e5a51-e5a3-4950-8fcd-c0fded361018","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":"eae4c124-4bfa-4cec-9576-28efa9d080c5","block_type":"box","text":"The CFTC requires that cer tain interest rate swaps and cer tain credit default swaps must be executed in","page_number":52,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"658bda48-86a8-46ef-9c5c-d58aba691e2d","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":"05e8c944-ebfd-46ff-8ef2-7c93c1bb5ccf","block_type":"box","text":"similar requirements on cer tain 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":"b793fe12-8b26-4d40-a989-a5db8d0ecbdd","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":"8e7e9097-53b2-46da-93fa-58f0d16b5cec","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":"ac5c9add-274d-4a3e-b5da-e6091f991c24","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":"cbaaf8d2-6373-4143-9c0c-6f2cb0a83bef","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":"1313e9c0-e021-4037-b776-a631b7a34086","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":"1fc18a72-6cc1-49a6-9ea3-b4291830cb82","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":"caabc766-c33b-42b2-8f1f-0b216826055f","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":52,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"3f9ae966-f610-488e-86e8-c61bfc9f23dc","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":"4e49e906-28da-49c5-b2be-f6cfc8013309","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":"946fcda9-f539-4f79-93d2-0c075615ab65","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":"9ee550b1-e85f-46fb-8efd-b9357f773f7d","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":52,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"0380342e-5586-4bcc-af74-fa029f8ee084","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":"a600a72d-4bd9-44c0-92fa-2d895724393b","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":"6b670fc3-9f6e-4712-a4d6-e494b743a0cb","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":"b90c7a8b-95af-4ee1-875a-131717a0ed2f","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":"953a0904-451e-402d-8b7f-ac8b621392c4","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":"97b56833-8530-463e-8dc1-ff214a18f8e9","block_type":"box","text":"member.","page_number":52,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"45ca956b-5a53-4c37-81b9-727d0dd4c357","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":"f0ed9bf9-37d9-40f4-b6df-538be86a3871","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":"7eddfdc2-3519-42e6-ac04-0f93412f8ec2","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":"659dc3a7-68c5-457c-a157-d2850e075ad1","block_type":"box","text":"margin in excess of clearinghouse requirements, and cer tain clearinghouses may share a por tion of their earnings on","page_number":52,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"21e29a3a-4d2b-48c6-984d-0582d0735241","block_type":"box","text":"initial margin with their clearing members, some por tion of the initial margin that is passed through to the","page_number":52,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"6387093e-0598-43df-811e-9ad19b904bef","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":"901e998b-ba78-4e19-b17c-ae5a182ccaac","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":"8374af36-d240-49bb-9356-04d0a49fc355","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":"21edaab5-e0d4-48f9-928f-fcba1846b7f1","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":52,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"51773d70-6f13-4651-99b2-cb44bf41fb59","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":"cc9e2da3-935a-4efd-8c52-09315e71824c","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":52,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"ccf522cf-f50e-4db0-98db-20232497069a","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":"46214233-a427-4a0d-9f52-abffc2643a96","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":"ffcd2e81-1548-45b2-9e7a-5989d28887bf","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":"10c929f3-bb19-447a-8173-170166a64e57","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":52,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"d76ca17f-e206-4f98-966f-f25e4b816bc5","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":"8e72f35a-ac56-4b52-91bf-208a564cc0e4","block_type":"box","text":"The CFTC, cer tain 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":"9f236cc9-f375-4f2e-bc41-13d85b5bd3be","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":"1b49aac2-86bd-45c1-8d36-33284460eb33","block_type":"box","text":"group of persons acting in concer t, may hold or control in par ticular contracts. In addition, U.S. federal position limits","page_number":52,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"40f3839c-0a8b-44fd-bf00-d7e523a006f3","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":52,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"bb50969a-6bba-44b2-bd8e-f0a222a5149d","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":"ce49cc70-7938-4724-bd45-4ecd0184ed69","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":"51c5ba55-a98f-44a8-ad72-51ce878b0a7e","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":"1effd640-4b1b-468b-9659-b8204ecd1cf5","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":"0a39695a-7e26-42c0-afbd-2ad98cb22098","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":"f099a563-e559-4f0f-8760-52472982b7d3","block_type":"box","text":"II-14","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"18c9c960-9da0-4b79-bc9c-afbdd2ac56b3","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"24a7329e-73b5-4a8b-a111-b83b7c76b263","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":"1ffaa92c-1e25-4b7f-acaf-193109e13b74","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":"d9fbab83-eea2-43f3-8497-5df68f6261fa","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":"21bf93db-68f1-40f8-a8c9-afd16c8c3159","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":53,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"b968c5c8-158d-46a1-a9c6-a5ffb8c7f76c","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":53,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"ed085960-9ce5-4845-a9e7-aa6dc6e9aa09","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":"6cac1de5-4ccf-4bdc-9a85-16e66f105951","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":"b3032bea-cf69-4380-84c2-fc0130534c33","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":53,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"0a8d4f0b-401b-4ea8-a6a9-1a1e941ec5aa","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":53,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"66c8a4e5-9319-4863-a820-eb2549a4aad1","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":"a184f3bd-9fd6-4d3d-b174-0843ce7708d1","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":"958406fd-6abb-4d68-9ef9-3022c6ab3b7a","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":53,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"a5bb9bfc-dce1-4711-b731-04713f346efa","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":53,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"52889183-9436-4d89-aceb-99197c49dad0","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":"0d8b7f16-1eb8-4e3c-b305-9b93ce5d85b3","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":"530c2500-93fe-48d5-a5b7-7636e23a062d","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":"eb704ef8-ddb1-4d87-8db9-c4cfe6cf9a8f","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":53,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"3494d0a5-7340-425f-8fbe-41875feef239","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":"919d6122-9220-446f-b475-d82ca3012012","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":"08bc6f5a-7701-4b0d-b7c3-ab0498e7dd4c","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":"d1f12653-da1d-4fc9-9987-b1fd4f9a98fc","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":53,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"c24f1359-37ad-41e1-9f9a-3a3c687836ca","block_type":"box","text":"regulated entities and cer tain 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":"aa69366c-f7a5-4094-b3b7-4874e68aef95","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":53,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"6aaaa178-3c24-4a17-aeb1-5d246c3a0f10","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":"9db6c4ae-81d2-43aa-a5e6-486a2c65114f","block_type":"box","text":"transfers of credit suppor t in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":53,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"1bda2109-a9f8-477c-b3a0-cf84b5bf95de","block_type":"box","text":"cer tain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":53,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"47db276d-21a3-479a-9547-8b1bb7da6764","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterpar ties located in those jurisdictions. In par ticular, in the United","page_number":53,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"788db447-c07b-438d-b9ef-a32a49bffc00","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":53,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"d6310f7a-c5ba-4b61-9cb4-ed0be7b561f7","block_type":"box","text":"to a Fund of a counterpar ty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":53,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"db1956cd-bc60-495a-9740-659990a302c9","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":"5bf192d7-4f14-4ac0-b8d6-b3155bf3a49c","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":"07187f29-4738-4eb3-a0fa-7135fe6bbb93","block_type":"box","text":"collateral received under such contracts.","page_number":53,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"18c1197e-adc0-413a-9024-42bc25d72fc0","block_type":"box","text":"Risk Factors in Derivatives.","page_number":53,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"c0ba81d1-93d3-4640-9dec-0f3490e7ce1c","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":"d80a1674-5c55-47ab-b602-cd279081824d","block_type":"box","text":"Correlation Risk","page_number":53,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"431a387d-e1fd-4bf6-a8a9-2414cc2b73dc","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":"c00dc404-bb15-4898-8ca0-98e5fab84efa","block_type":"box","text":"the por tfolio holdings that are being hedged or of the par ticular market or security to which the Fund seeks exposure.","page_number":53,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"6a131a1f-20d0-49e0-b14f-fbfaf3db63ee","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":"cab9a498-6cd0-44d7-8d65-1cd1ef00a8d3","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":"75c3d454-c2ae-4a9b-a5c7-810300476887","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":"324feb02-a53a-47b4-b25c-039e37762d35","block_type":"box","text":"Counterpar ty Risk","page_number":53,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"81910bd1-de77-48ab-805e-002f09d0ecf4","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":53,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"ae65ad1d-a1f4-461e-8576-8fd046d7a4b2","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":"99ef8d57-015b-4474-9cf0-af36e3a3a037","block_type":"box","text":"a counterpar ty. In par ticular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":53,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"6642cc99-cc9d-4662-a99a-0833b7f5f0e9","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":"e49685d6-abf1-47e7-a1dc-a1b682e2b14d","block_type":"box","text":"instruments or has deposited collateral with its counterpar ties the Fund is at risk that its counterpar ties will become","page_number":53,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"28f59523-22b0-4d52-a357-47df5aa60f2b","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterpar ty risk by","page_number":53,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"e445bfa0-31cd-4387-a453-685f4355e0a9","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":53,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"0434252d-6207-4981-94f6-870e2cf357f8","block_type":"box","text":"provided the Fund with a third-par ty guaranty or other credit suppor t. When a Fund enters into a derivatives","page_number":53,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"72e2ba7b-e03c-4d0b-bf35-c885cbbd6311","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":"4238488d-5438-400c-af7d-a85d6ca39cab","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market par ticipants","page_number":53,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"ef301d09-4252-4b85-8250-9e2e4cc0fd8b","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":"79dc67cf-2d98-41ee-8158-43aadf3b6109","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":"fe454876-0cc2-4d5d-8441-38de3e602c37","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":"f3cbe22f-58ba-4563-a4b0-1d4449e65976","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":"418471b1-6faa-429d-b5b8-8a95cffc0f7f","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":"dc842378-7d68-4f2d-8607-b1b459d7c283","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":"7ed6b529-c69b-4e6e-b362-58d0752d45f2","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":"ad9c946c-516d-42ef-af86-d35d2da6518d","block_type":"box","text":"II-15","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cddd3212-ec7d-43a7-8bcf-56e5379b899f","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"678ab755-ce6e-4a93-b57d-175981f74d16","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":"9546aa67-1e65-43de-8bf2-0040f7025221","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":"ea48a81c-2e84-4e5f-a650-3036d51dcc7f","block_type":"box","text":"by the clearing member.","page_number":54,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"bf3c8f97-ae7d-405f-a7eb-c51734601dc9","block_type":"box","text":"Credit Risk","page_number":54,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"d13e822f-6f40-4fef-bcfe-d23c720c69f6","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":"eaf04c53-4442-4b0e-bf4c-698664dc0d1b","block_type":"box","text":"honor its financial obligations.","page_number":54,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"358da5aa-8ed8-4176-977a-a113b5ab8ecd","block_type":"box","text":"Currency Risk","page_number":54,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"a0891af6-38a8-45f5-9e8b-5180bd6ca551","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":"f9ae7b96-ca03-4fa4-89d7-1c05806acdd4","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":"e5e697e3-53a5-46a6-a64b-ee4b0c12dd07","block_type":"box","text":"Illiquidity Risk","page_number":54,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"e7802ff1-e691-4899-b22a-13cb28e10ff8","block_type":"box","text":"— the risk that cer tain 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":"97df963b-266e-4c8d-982f-c5884aec4638","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":"cb74b7c6-8ce2-4c24-b026-40c463a07960","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":"1da1decc-9aba-4e2a-8b6b-96ec30c4572e","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":"2fc95f03-9318-4408-a3a5-da82f0479131","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":54,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"2c691a35-d568-4a15-a75a-6503e343ff3d","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascer tain a market value for such derivatives. A","page_number":54,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"8b62b539-58c8-46e6-9362-b695c4d6fcc3","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":"5df24a43-f79f-4f31-9be3-45a4a4f4e6b6","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":"533f2185-a564-47a1-a2b0-0f42f8ec0d6c","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":"8661ed3a-f5f3-4984-bed3-75782af1ae7c","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":"b6c99aa3-c495-4c9e-b43e-4394409ae402","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":"b99dfa67-40fa-4d29-88b9-4e6962396ea7","block_type":"box","text":"the par ticipation 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":"9ed7112a-3f0f-446a-b693-73673ca08ded","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":"6ba4f064-7ebd-4c5c-a63b-b57a4ee4b21d","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":"d61403ed-ce5b-42c5-9dac-067c9697cc3d","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":"add76ad5-0c2c-4cd4-ade7-74c27d63eff4","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":"19ac051e-f2c7-4beb-8311-8030f2712eec","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":"7b56676b-191a-43a8-ba91-591ba58e12b0","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":"4f055995-78ad-4645-9671-bc355108f066","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":"46ba9ae2-4fc8-44f2-8d65-78193200ea31","block_type":"box","text":"insufficient cash, it may have to sell por tfolio securities to meet daily variation margin requirements at a time when it","page_number":54,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"814f1457-c40c-4832-9004-5fb276defa8c","block_type":"box","text":"may be disadvantageous to do so.","page_number":54,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"6a102d20-8bce-4bed-b608-1c46782ee703","block_type":"box","text":"Index Risk","page_number":54,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"94cf2467-96e5-4a5d-b55a-8318db173e40","block_type":"box","text":"— if the derivative is linked to the per formance of an index, it will be subject to the risks associated","page_number":54,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"53ed281c-a319-409e-86fa-1c49d1ee296f","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":"d5de7c6a-e992-4bd8-a82c-64eb3026eaf1","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":"5d876350-f8b1-43f2-96d6-478961fdc142","block_type":"box","text":"Legal Risk","page_number":54,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"02886f71-c5e8-4c23-86a4-b3d82e2563bb","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":54,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"5a555972-e45e-4563-8a50-8bd3d6db4f8d","block_type":"box","text":"or enforceability of a contract.","page_number":54,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"346ec858-fa88-45b0-8239-7a92f80a4f33","block_type":"box","text":"Leverage Risk","page_number":54,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"910dd5ce-66f9-4a8e-96d8-4d08ef5cf9ce","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":"c031053d-0fe7-4a26-9bef-31ca18e41ed9","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":"02949a97-b6bd-4dd1-995e-60fd09e9f8b4","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":"fff956d6-a842-477f-9b60-5f9649533877","block_type":"box","text":"Market Risk","page_number":54,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"59edf0c9-16cf-4d7e-828f-c44c5a732228","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":"c4db1714-99ad-4378-a3b5-5f1e2b7e0f93","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":"417b27e5-149f-4ca6-a248-29e77c9bcf8e","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":"249068bb-8347-40b2-94d8-64543ef66b6f","block_type":"box","text":"affected.","page_number":54,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"a7718b5f-3e7c-420e-8620-a9d8fa38f876","block_type":"box","text":"Operational Risk","page_number":54,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"ce246a63-51ce-46db-8971-745355e6d8d4","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":"99244daf-01ce-4ba8-a4fd-e94f5d7966fb","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":"d1dee78b-3a78-409b-9f6c-be9ab4d3fc3d","block_type":"box","text":"Valuation Risk","page_number":54,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"0489d81d-a6fe-46d7-ba30-f6f77bec9422","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":"1c531849-d48c-4896-bea0-5618a10983dd","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":54,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"e84232c6-e4f9-4544-835c-947479018605","block_type":"box","text":"complex instruments or quote prices for them.","page_number":54,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"f46a9247-ed7c-483b-99db-b5848ff02e49","block_type":"box","text":"Volatility Risk","page_number":54,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"c9ec23ea-9a10-4b52-86bd-9bf69021d4aa","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period.","page_number":54,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"36a1b44b-b779-4c25-997f-c7756aff1ec3","block_type":"box","text":"Types of Derivatives Transactions.","page_number":54,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"1f3fc63e-96f6-4872-890d-d5b5c9ed89a2","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":"6eaaeaca-a16a-4d14-af9b-f5f9b28fc061","block_type":"box","text":"including the following:","page_number":54,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"e506a0d9-36f6-4fe6-844d-34755eca0b18","block_type":"box","text":"Futures.","page_number":54,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"bcbf99a5-1778-426d-85bc-136703231390","block_type":"box","text":"II-16","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fa589802-f049-47dc-b7af-bee4983d88ff","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"00cfe344-52d1-4ff0-bd4c-e50971297b5e","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":"532119ea-53c9-4098-a403-b24a1d10af2c","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":"48246261-2fdb-4977-a73d-40e22d217944","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":"e6a21c49-b7b1-4af7-bfa3-03e70dd24a8b","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":"d50a9109-363f-46b7-9653-d9ebbf1afa4f","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":"e2383706-e496-4a00-94cb-4a5a37587ed0","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":"7d61c059-45b0-40db-a7fc-ba33b9d257bf","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":"7f120165-90bd-49ab-8d72-8871689deffd","block_type":"box","text":"market value of por tfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":55,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"05caa5d1-62c0-439d-a6ce-32f12f75b1f7","block_type":"box","text":"por tfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":55,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"2368d81c-bcbc-4c02-a0f3-9182bd90cb2b","block_type":"box","text":"the futures position and a lower return on the por tfolio holdings than would have been realized without the purchase","page_number":55,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"5f907af9-9c80-49b6-971d-c29d25c3d687","block_type":"box","text":"of the futures contract.","page_number":55,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"d311443e-55c7-4574-98f5-05e924aab71c","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":"ae567500-4895-4fa6-b746-d85b5d4a13a7","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":"44b3182b-1ac1-4ac0-ba8b-ccddb7d1f53f","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":"18212959-a8e3-4b47-8ccf-7ee1b0ffd34b","block_type":"box","text":"relating to the futures position.","page_number":55,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"9e9a4714-cdf5-4618-91a9-c118ae62ad45","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":"e8fcd548-1b34-437d-bade-ade4799c50ec","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":"a8c97087-26c6-42ed-90af-79bd14bef10f","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":"bb598496-9de1-4d0b-9575-533869abb5ad","block_type":"box","text":"Regulations” above.","page_number":55,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"c170f437-394b-4210-a33f-e525f69a9e12","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":"b59720eb-9e97-4781-a3e9-8f4b94df7b2b","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":"80f7d7ee-4cad-43a7-acfa-ff58ebc296fe","block_type":"box","text":"(","page_number":55,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"43759bf5-0975-4bb5-846b-c953cec223de","block_type":"box","text":"i.e.","page_number":55,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"c2ffc505-1430-40d9-93f5-8ce453047e55","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":"392ca454-ddc1-4844-ab1e-d52f48a227cd","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":"102d1055-846a-4d03-ab0e-bc7e2b5dbc15","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":"c93a083c-89eb-4576-b1e2-0da0f383febe","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":"67a07b71-f9f5-4047-9f83-19cd981c677f","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":"0ead1e73-4234-4038-802c-00913db8c279","block_type":"box","text":"Fund intends to purchase.","page_number":55,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"9d836775-a574-413a-91c4-fe9d1b734c53","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":"7cad529e-8857-4d5a-a892-bcb35e158a66","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":"ecb269ed-0213-49f6-9614-efb76891072c","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":"d3136f06-9fa6-488f-a716-d3982bbb8b41","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":"2f8ede0b-5710-4bb1-bea5-495843efd084","block_type":"box","text":"illiquidity.","page_number":55,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"86a8d07f-64b0-4bdb-b712-69f6fc766927","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":"727f120f-b275-4d06-adcd-92a4c6e21cd2","block_type":"box","text":"illiquidity risk, market risk and counterpar ty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":55,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"fc763fa9-a2cb-4421-9b16-f73d6eb2b6bc","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":55,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"9fea7183-783f-4d33-95b0-37d35a2b3e18","block_type":"box","text":"Cer tain Funds may invest in futures based on carbon “allowances.” Under cer tain regulatory regimes, a limit is","page_number":55,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"dac98181-3ca7-4e65-b885-5b6260ef3d00","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":"160cc113-5f3d-438b-a52b-0edecfd91649","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":"2d051d2e-7321-45c2-85af-c9bc2ff63554","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":"634a6834-7fda-4bee-91dc-4f68d1ec5eb8","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":"ff8d377f-7155-4572-86c4-2762b23f8d72","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":"b7c3eee8-fcb7-41f0-a2fc-8815dfb812c1","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":"983bda31-6671-4bd9-ac1e-9265aa98fce0","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":"33b5f94f-3a57-470a-801a-d1740974b54f","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":"2982669f-8ffa-4995-86ea-44cc2e2245f9","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":"12429d74-2d36-451c-8c78-6438565ba3da","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":55,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"d025d37e-2029-4fa2-bfb5-2b96ee9e534f","block_type":"box","text":"Swap Agreements.","page_number":55,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"7f8b187c-e4e2-4119-b4db-1d80dc803448","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":"d7fb5997-de16-4ca7-a652-f14059a969e2","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":"230056f8-97ac-4b36-9622-943ad9bb72ef","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":55,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"e8b83699-d0cb-48c7-8ee4-2f11a4e7bd0e","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":"bc96f9f4-0d28-4a54-8df3-1a58774af71f","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the par ties are generally calculated with respect to","page_number":55,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"52c4b9f8-979e-4495-8069-260ed4920602","block_type":"box","text":"a “notional amount,”","page_number":55,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"5d9cdf85-aa8d-4e1c-bd87-a0c94ee8e58d","block_type":"box","text":"e.g.","page_number":55,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"2ffbffcf-1051-4462-a16e-dc866cdfb54f","block_type":"box","text":", the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":55,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"2f1c26f5-e54f-4c72-b13f-f96756ade79e","block_type":"box","text":"II-17","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cac8a6b0-9120-4b83-88e9-24bc55062e0d","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0889cafd-560d-4618-b0a6-5dd04740ebb1","block_type":"box","text":"interest rate, in a par ticular foreign currency, or in a “basket” of securities representing a par ticular index. The","page_number":56,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"eedf7ca0-ea3d-48fb-97c9-ebcde0cd571e","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the par ties to a swap","page_number":56,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"96267c21-8243-41da-a078-8a3866d1e86a","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":"406ad5e5-d2b5-48e1-a53b-bf89e721bd44","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":"5a3f450e-675c-4912-8763-f02dd1efda8b","block_type":"box","text":"by each par ty to the agreement. Swaps that are not cleared involve substantial counterpar ty risk. A Fund will typically","page_number":56,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"6e5ed9fc-3bd8-428d-842a-88fc48085daf","block_type":"box","text":"attempt to mitigate this counterpar ty risk by entering into swap agreements only with creditwor thy entities that have","page_number":56,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"ab4ab030-571d-4f6a-9269-856778579f01","block_type":"box","text":"substantial capital or that have provided the Fund with a third-par ty guaranty or other credit suppor t. A Fund’s ability","page_number":56,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"61eafc38-692c-47d1-aa48-b9675cc7e8f6","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":"cf8030b6-51ee-4e27-95dd-639dff96d773","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":56,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"eac977fa-9271-4046-8ef0-d352573574b0","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":56,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"bdd26fc2-036c-48c5-99c8-4516f56d38d8","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":"4185adfd-9c8a-4a1a-b10d-ecdb51ad5de0","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":"d85b81bc-ab98-456f-996d-7dad686d9f07","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":"062f6b7a-0e63-4610-8e6b-a77a42cef5ff","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a por tfolio of securities issued by","page_number":56,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"84c179ba-4e85-457b-bb97-16bbbdca20d0","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":"26bb1c45-79c8-45d6-af69-a9ab8bc6e7cd","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":"eea22b08-552a-4fd2-9fe7-56ba12457940","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":"a172c3b0-b7a3-4e36-ad64-ec1ffc2681f6","block_type":"box","text":"index CDS.","page_number":56,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"dd2d9519-b135-4438-b727-7d60046f7147","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":"4436dc85-700a-476e-9a9c-90625865def2","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":"dd2e924e-2764-477c-8621-570cf669ce9c","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":"5840b013-dd79-4736-bf36-169a0258c9a1","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “shor t squeeze.” In cer tain instances of","page_number":56,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"12a404da-3ba6-4bb1-ad43-66a07022d052","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":"e9e0865a-814d-4f85-bd7e-bd905e02725a","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":56,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"c0f3cd26-e8de-4d49-aeec-09fd96aac98c","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":56,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"afa8c6e0-15b9-4170-a83b-149b69980c8b","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":"a499b93f-05e3-41a8-bfaa-8a27ac079a9f","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":"59617ff1-b7f3-43f9-afe5-b97d72c077d8","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":"0af84dd3-da2a-4339-b5b5-a99fdef4067b","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":"99ceadfc-3309-41e4-985d-56418ce38c14","block_type":"box","text":"uncer tainty as to the occurrence of credit events and the risk of a “shor t squeeze” by providing that the ISDA Credit","page_number":56,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"859d273c-b8e8-41d1-a68a-b0d9b2f4227b","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":"1a537cf3-d8cb-4ccc-86e1-e6386582da6b","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":"454c2bed-e83f-4fcf-8efe-c8737ed45692","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":56,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"fcf7e5c5-2cb6-40e4-a3e9-ab6187c27377","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":"e0882792-875a-4faa-9357-29bbcf9dc7be","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":"ab4b517e-7c20-4d1f-9633-397f3218bc79","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Fur thermore, a Fund may enter","page_number":56,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"ae1da7d4-646c-497a-a243-eac719879fbd","block_type":"box","text":"into cer tain 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":"07d0f05e-80e8-4a19-8c88-33847f2b6f92","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":"dd8a535c-3ce5-4518-a358-aecf6004a6c3","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":"c76f94ba-a0a9-4040-b50e-b54db593172b","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":"a95862a2-979c-4562-b6b5-eb8e4c00f556","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":"fbf3df80-cbdc-4570-9233-f07a1b9fd14d","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":"996c85a7-a2cb-414e-aaa2-919f7b9a5c09","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":"b9bac74f-066c-4c07-a8b9-b5987ef429f2","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":"da74b833-7546-4fc3-871b-bfc7d014f3f9","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":"b1e38f5d-1587-4a51-b716-8045a875a648","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":"6d14970d-6998-4e4b-83eb-e981985f66eb","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":"5fd3db41-e7d4-449d-bdb1-ace95bcba9cb","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":"47389cf0-19de-4e1d-9bbb-c5255c3b6771","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":"6a2dcd3b-02d7-4cf7-86f8-a20e7d81f8c0","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":"205d7809-43a3-4ded-9ca4-f7be27cc29cd","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":"eeefed46-911a-4421-a985-b0da18f5ef1c","block_type":"box","text":"conditions.","page_number":56,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"863106e0-06c6-436b-9f0c-fc52f742c53f","block_type":"box","text":"Dodd-Frank requires that cer tain 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":"f25ed6d9-efff-4e82-8c32-b3b2ae0282e0","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":"227169c6-0b16-4e8e-8286-ba02b8e01fba","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":"a2f15002-69cb-4ab3-9234-388398318141","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":"e472a177-c5d1-4d5f-8727-6ed96acac637","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":"ecfb046e-0cb6-4465-9e12-14ec0e404c9d","block_type":"box","text":"II-18","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8e31ce89-854e-4694-8843-684e3fb54ddf","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b6354d69-5883-4e70-b45f-edf11b93e0f0","block_type":"box","text":"counterpar ty 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":"19026e33-a607-4bd0-be12-3a3a77dffbab","block_type":"box","text":"CDS. The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared credit default","page_number":57,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"30705a71-337d-4655-92f6-bdb8c2874ce5","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":"e7bf4063-6497-4179-89a4-f934be0fcc8b","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":57,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"1cce0884-d0ef-4e2f-b84e-58887062771c","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":57,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"76199666-c122-47a3-b0f6-a51dfbd3d5b1","block_type":"box","text":"In cer tain 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":"3a187b73-87e3-4014-8209-8b6396cf8afb","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":"08d18b82-5d4d-4f9f-89af-3926bba2a26b","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":"94391baf-c6ed-497a-b22c-63674e858daf","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":"4a23cf42-a4ef-409b-9ad0-773c5560c38c","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":"ea11b203-f466-4b54-adb6-61ed384d58f1","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":"e2bb7a13-97ca-4421-bb5c-bd074adedf84","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":"5cff6b08-2807-42df-9a49-3a31c6e9d554","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":"0ecf9652-6081-4ad5-9706-83485667a355","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":"caca1484-9af1-41b4-a8c4-5e3317f75517","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":"42fa78f4-a4cf-4ed5-9e6a-d2244f291f64","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":57,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"383edca7-c857-4ca6-aa40-dda2925829d5","block_type":"box","text":"Cer tain 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":"69c6f687-8965-4ed1-82ce-0d2a7c65be71","block_type":"box","text":"swaps and interest rate caps and floors. As described in fur ther detail below, a Fund may enter into these","page_number":57,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"5be4330a-d574-451c-a608-784db2a13406","block_type":"box","text":"transactions primarily to preserve a return or spread on a par ticular investment or por tion of its holdings, as a","page_number":57,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"c0dfe8f3-4e04-435d-99a4-f53cddee3e90","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":"bf48229d-d5ee-4d11-ba7a-5f4a3cca4f62","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":"befa4605-6f1f-4850-8823-c19232e6969d","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":57,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"2e9cec57-71ef-44e9-bfcd-6d552162112d","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":"6ab592c2-deba-400e-ac1d-5a83edf4ece1","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":"fed272a0-935f-4787-a20e-329f3a135d8a","block_type":"box","text":"by the Funds are cleared. The Funds face counterpar ty risk with respect to the clearinghouse when entering into","page_number":57,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"2dd9c615-88e1-439d-82c3-253458b85f69","block_type":"box","text":"cleared interest rate swaps.","page_number":57,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"c59613eb-1bf0-4370-8b32-d4f870b487bf","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":57,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"0413415c-3eac-4d5e-9b3e-c2dda764f394","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterpar ties for a Fund’s non-cleared interest rate derivatives","page_number":57,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"93782361-22e1-4098-88c4-d3026abe4797","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":57,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"290c9e66-0c0b-4f1b-a4b2-7d06d9d9e1cf","block_type":"box","text":"Fund with a third-par ty guaranty or other credit suppor t. If the Fund’s counterpar ty defaults on such a transaction, a","page_number":57,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"7414c826-07d3-4baa-93a1-5c0a646489a4","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":"9affc3c8-683b-45c9-b4fc-456ce768c85c","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":"431dfe48-f752-4577-acc8-ce835baf1841","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into cer tain","page_number":57,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"dd1ecae6-6925-4fb6-a779-f730d4cd3f22","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":"85318688-7835-4d42-8a0d-267568d892fa","block_type":"box","text":"Interest rate swaps are transactions in which each par ty makes periodic interest payments based on a fixed or","page_number":57,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"3ebd7728-6978-4761-b77d-a500ba633c8d","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterpar ty based on a different fixed","page_number":57,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"f02ff118-29e9-4d90-ad71-35e123c92e16","block_type":"box","text":"or variable interest rate, index or asset.","page_number":57,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"a2da88be-76a4-4107-b02d-f285bd173e1d","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":"af688ff4-694b-4579-8d52-8af5ff0a633d","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":57,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"e9fb9690-8ff4-42f6-b9d3-c7667e315798","block_type":"box","text":"such interest rate floor.","page_number":57,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"f01a65df-f12c-43cf-8365-a0e1c1f170b7","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":"f1c10105-0ea6-49c2-8476-fe37a8a9df52","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":57,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"57284193-0c26-4db1-94fa-4bac7bb93d77","block_type":"box","text":"such interest rate cap.","page_number":57,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"a5d16098-53b1-4f14-bfe1-e2ed26858914","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":57,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"00bccd53-5b87-4209-ad77-e807865cf1f3","block_type":"box","text":"commitments to pay or receive interest,","page_number":57,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"90d08531-43a5-4630-a244-dc6bf1387c9d","block_type":"box","text":"e.g.","page_number":57,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"b68499c5-4dbb-481f-ba0a-5b1b28f6c086","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":"ffd1d02a-2d85-4bd6-a35c-93991d30330c","block_type":"box","text":"example, if a Fund holds a mor tgage-backed security with an interest rate that is reset only once each year, it may","page_number":57,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"d8e3f40d-b89b-4f20-94cd-b86d4498671c","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":"fc466db6-b7cd-400b-be54-ddf6ef82e05c","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mor tgage-backed security due to rising interest rates","page_number":57,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"a6a165e7-2233-46ac-9c9a-d35d86dafda0","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mor tgage-backed","page_number":57,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"e7a48cc2-9ed9-45ad-bbce-8b1081e6e0b2","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":"7e476713-c145-4de4-af86-12b9cd014cc6","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":"474ffd4b-416e-425b-a876-7102d67f9d62","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":"e50bd767-9d65-4cad-9b86-1257be49a0c8","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":"3dd5a12d-7534-4345-b609-36c5d17bae33","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":"e7e78493-ab0f-4124-aea1-6c194180e450","block_type":"box","text":"II-19","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2db72929-a11d-41c8-b640-b3022dc104f0","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4d8b3c3e-c614-4263-bcaa-172941341cca","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":"d6cd9818-4b47-4d18-a241-a91438e96a53","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":58,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"93f46f05-e0ff-4480-a116-f7aa27403e6f","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":"9def0180-4e2f-4323-b112-57db763eed77","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":"804a3007-1539-43e1-a2ce-7298754e3b8b","block_type":"box","text":"Total Return Swaps.","page_number":58,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"bf4eaa70-989c-40dd-95c7-0525aa441e67","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":58,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"e70c6055-f59a-428d-8d4a-5a4f129dd092","block_type":"box","text":"the other par ty based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":58,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"0c7ea029-d866-4dad-87db-1699a55a44c7","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":"048edbd6-6c68-490d-b26c-686f971c2e78","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":"0bc3c2a7-3176-4c73-8e54-693a4be07112","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":"a46c7dd5-f4f8-4565-98ea-86fe956d17d6","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":"4803b6af-8ab4-40e6-9e15-7730c1be6c71","block_type":"box","text":"“contracts for difference.”","page_number":58,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"53f66196-45e2-4213-af9e-638e9a0e30ca","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":"5eb6e6a4-f716-4273-a415-53e1c6480bad","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":"0b5ceba3-55d8-4745-bf70-73cf0c4b8d6f","block_type":"box","text":"required to deposit initial margin but the par ties do not exchange the notional amount. As a result, total return swaps","page_number":58,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"33988a0d-1a65-4dde-ad2e-ce5ab9b8e452","block_type":"box","text":"may effectively add leverage to the Fund’s por tfolio because the Fund would be subject to investment exposure on","page_number":58,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"9913daf8-dd49-4382-bbf3-9c2faafe1d17","block_type":"box","text":"the notional amount of the swap.","page_number":58,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"7ec24fbb-3c0f-4110-8ce9-4b54637e128b","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":"4acff9fa-bbd9-48a4-9ef3-04d3ebdab271","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":58,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"9696c107-4f39-4771-8674-ff3b7da82b5c","block_type":"box","text":"Options.","page_number":58,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"862497be-e0b3-4b36-859e-16219248e164","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":58,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"b90a37e1-e595-43b1-b0d6-c146f010a1c5","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":"d8463174-8c60-45e9-8c64-d033cc1877f6","block_type":"box","text":"securities, baskets of securities or securities indices, or par ticular measurements of value or rates, such as an index","page_number":58,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"85143fb7-5555-4f51-9f6a-05321619a685","block_type":"box","text":"of the price of treasury securities or an index representative of shor t-term interest rates. Such investments may be","page_number":58,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"7d10f6ce-c6e0-4d9e-9085-97e07ede1d33","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":"b661c0de-1721-4301-bdf9-5e67833793cd","block_type":"box","text":"and expiration dates and require the par ties to post margin against their obligations, and the per formance of the","page_number":58,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"7a79d9fa-5909-4cb0-a404-2d31e9aa7cce","block_type":"box","text":"par ties’ 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":"de2a81d1-0049-4d52-bd4f-0cab1f6ed60b","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":"64e67936-4360-4560-8673-d368eae70b3a","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":"35517045-0c1d-4b63-a93b-4a19e129e5f3","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":"fcdcba76-a961-4d2a-82a4-b30fbbcc0ce0","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":"b9c36fe2-f706-4535-8dce-9df16b1e9b74","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":"3e66c34c-1e0a-4691-8747-63e04a4f9dd2","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":"39e38534-3440-4efc-8a26-ad9a19b75698","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":"47be1f13-8dcb-45dd-a847-2017b95af9b6","block_type":"box","text":"OTC markets.","page_number":58,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"e27ac782-6e83-473f-bc60-6f63c0f6a8ed","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":"1e477bbc-da53-413d-9b8b-135e0934b15b","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":58,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"6d40eb82-5745-4ef1-af1f-e579c98b85a3","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":"d783762a-8cf8-462f-9995-2366ac230ce5","block_type":"box","text":"par ticular 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":"b1f24169-29b0-4f07-92a8-61b2cff13c00","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":58,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"e3be0dae-30df-4461-95f9-01103eac9c4c","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":"190d763d-e0b5-440f-943b-e3bb62507eac","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":58,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"a55dd687-48d8-4c1e-b283-8b878bd210fc","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":"b3f98eec-c62d-41da-b9d5-a6972526d8ac","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":"3afb042c-925e-4f64-979b-7fe3b6fd8e72","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":"36ea8239-29ae-436b-91c9-385b122ab21e","block_type":"box","text":"trading of options (or a par ticular class or series of options), in which event the market on that Exchange (or in that","page_number":58,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"3454a337-4a76-41a3-93fc-216c17141389","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":"fdc39105-7bbf-4f5e-bacc-447ae99426d9","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":"a3e34c94-804c-409a-a0e2-66667af79f12","block_type":"box","text":"terms.","page_number":58,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"41ecd7d6-a590-4005-a9b5-5c3089631c59","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":"d09279c2-e4c6-4dea-bd44-92aeabd8542b","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concer t with others","page_number":58,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"eb2f377c-5fda-4ea9-aa9d-6cb5baa73d01","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":"ea466e30-5c65-4df2-aef5-1fdf9eaf4640","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":"35bb551b-f9dc-4686-9510-904eb16739e5","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":"f5b53c4d-6827-486d-94b1-626b43f99c8d","block_type":"box","text":"II-20","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"149110dd-d46c-4002-8a5d-00a8703d09af","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"764ad733-202e-476a-8640-377060bf4f7b","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":"074b2b4d-c998-4ebe-9ac9-e77dd949c667","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":"54325f9d-c89a-412d-b5ae-c194a33ac603","block_type":"box","text":"Call Options.","page_number":59,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"d120477d-7b1e-4d1a-95ca-e63f750bc997","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":"626de8c8-3db1-4930-93b7-511ab4245e5c","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":"894e9cad-e24f-4e78-90a8-61e664b1b8d3","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":"8dd49e82-3c85-4fec-9549-3b57dddc89de","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":"395ce6b6-d0fa-46e4-a73d-337622ce8ae2","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":"f332d99d-9906-4ccd-a3f2-a1978e331561","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":"e3720c2d-e46d-4d66-a184-b491c520a632","block_type":"box","text":"of the option.","page_number":59,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"9d61993b-4ba6-4b78-9df9-2bb25843f95e","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":"05edc404-a6fb-4712-8399-8a0e5738de2a","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":"22b1b759-678f-4faf-a7cc-eb6828e55dd6","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":"0c9ed192-4fd2-448d-ac7b-58d0d6b31ecc","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":"9c1d864b-a879-4bf9-b6e7-14b31cb766fc","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":"2f38980e-8e2d-48ba-8906-69be91e8f0a6","block_type":"box","text":"A Fund may write (","page_number":59,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"29bf7b92-f49b-45d0-95cb-9cdb8e354837","block_type":"box","text":"i.e.","page_number":59,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"58b1ea5b-dca8-4cd6-803f-e98723dbd6a4","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":"65b0e8e9-cecf-4714-91e5-dc9500d70136","block_type":"box","text":"enter into closing purchase transactions with respect to cer tain of such options. A covered call option is an option in","page_number":59,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"68f2b7fe-40b1-440c-9a24-9c2a86b74f27","block_type":"box","text":"which a Fund, in return for a premium, gives another par ty a right to buy specified securities owned by the Fund at a","page_number":59,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"dbb7ef3e-29fc-4a31-88ad-9f8191a90907","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":"a1a0705f-228b-4e14-a634-9664e34cd2c2","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":"063b0a17-234c-4237-8427-48e64d6b0f14","block_type":"box","text":"By writing covered call options, a Fund gives up the oppor tunity, while the option is in effect, to profit from any price","page_number":59,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"e473743d-3c27-4ef8-a910-5ab1ddd7f9a6","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":"68ac2a1b-ad1a-4f86-a307-fc53d5153252","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":"6be12a9c-e24c-499b-9f55-3b5d3dd8d1e5","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":"83f74a08-84b8-4042-998d-6bd427412984","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":"ded337e6-5c35-468c-a264-db92cdbf5db3","block_type":"box","text":"a par tial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":59,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"81a4dba6-62e2-4f93-bae1-a21800c8e1d3","block_type":"box","text":"A Fund may write","page_number":59,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"af859a94-91a2-4fae-8bac-56c6bb96e636","block_type":"box","text":"(i.e.","page_number":59,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"ff54f94a-92d3-46e2-b83e-87571e2856fe","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":"270d0e7f-3150-4ea4-b879-3da93560268b","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":"6c3fca44-f000-41b1-a6e7-84a66809812c","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":"5763950f-77ba-4e23-9436-0ec841d938a2","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":"5a90d9ef-9de7-4dce-b69f-c100590ab4ac","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":"a86be5b5-b5cd-47db-a707-cbce3fd16b6f","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":"3c639ec4-58c9-4f2c-9054-b426bdf92094","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":"45f809a1-cd3f-4260-aad4-28ac295980c9","block_type":"box","text":"there is no underlying security held by a Fund that can act as a par tial hedge. Uncovered calls have speculative","page_number":59,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"cf7a93e7-1d02-4e7b-9f32-55e9febccaf0","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":"83dd2947-910e-4757-a6bc-5d86ef661165","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":"76bde8e0-1eed-4404-a0dc-9d9cb3a2c2f0","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":"9749dfe6-d4f8-431c-9a05-f2c34c2ddf2d","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":"bf6aac1c-cbb3-4ded-bea7-e796a6f2e0cc","block_type":"box","text":"Put Options.","page_number":59,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"e93c4bcb-2752-48fd-9bab-74145567ac01","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":"7e5edbc5-9167-44db-94b3-82ff11f9746e","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":"e312962e-0177-4385-bb3f-55c7b78ae406","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":"9b279611-3676-4847-8020-fe782045346d","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":"e1c2cc0d-9357-46a1-b948-cb1fac8a35ed","block_type":"box","text":"instruments will be par tially offset by the amount of the premium paid for the put option and any related transaction","page_number":59,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"d87b6dfb-aad3-4251-85a0-cc3b4aff7fc9","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":"7fb6ba0b-4565-4b34-8094-c6db9d1e45b5","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":"3bcb427a-9fee-407a-a849-26b2da37497a","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":"b1a6e0b4-ec58-4d6c-943d-76ef1552e821","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":"35528362-c475-408b-a3fa-4be33cae3c81","block_type":"box","text":"purchase uncovered put options.","page_number":59,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"aaf7731f-207a-427f-a41e-0b811f90f1bf","block_type":"box","text":"A Fund also may write (","page_number":59,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"43c68b6e-3b0f-429d-b25d-c8ad15c66848","block_type":"box","text":"i.e.","page_number":59,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"28b1625b-c7d3-4ca9-a13a-1e209bdb7db8","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":"673a53f4-255d-4257-b54b-22510f6c919c","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":"408cc61e-9411-4e18-9e6b-ec6dc38a3d28","block_type":"box","text":"A Fund also may write (","page_number":59,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"55a20669-b5f2-44af-b86d-49365d6923d9","block_type":"box","text":"i.e.","page_number":59,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"18967fdb-0ea9-49b3-8f29-507340d3eff4","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":"8f89b5e7-cd9d-47db-a55b-eb9c15051214","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding shor t position or has not deposited as","page_number":59,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"f2d11762-79bb-4a02-a629-0cbf72b6f65c","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":"36cd8aef-7ae4-4d5d-aba2-2d417e55197e","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":"08ce62b7-c0f7-43b1-ac77-2d21d7297bf0","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":"2f181d60-daa3-4a3a-8c25-c3d344cd0cd9","block_type":"box","text":"II-21","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cb8775d2-ce84-4f81-a451-ba8862937d48","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f3dd8b79-3ce8-4a79-8007-6d56df287536","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":"0d0a0f92-cb2d-40ef-afd4-eb283a2fb408","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":"6e04fa53-a5ab-4c44-ab5c-4da826e69026","block_type":"box","text":"expire wor thless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":60,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"87a6bfc0-929f-4ec6-a2e1-22e46f646579","block_type":"box","text":"the exercise price.","page_number":60,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"63bfaa21-ff8c-460b-b9ba-50464bfdea60","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":"51f98a1d-5613-4144-94a8-a3b3ef9670c7","block_type":"box","text":"The following information relates","page_number":60,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"ff68412c-0524-4110-b9c7-d0a5bcdce906","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":60,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"a3e7c8ba-0e9d-4c90-9e69-d36713020f00","block_type":"box","text":"Cer tificates declines each month as a result of mor tgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":60,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"2e5f9f1c-79b6-401f-928b-e7126dba1df4","block_type":"box","text":"Cer tificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Cer tificates","page_number":60,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"f4574f79-6025-4ac6-b0fb-05d045a3171a","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":"5f6b2170-e753-46f7-a3b5-fd97cf409cd8","block_type":"box","text":"purchase additional GNMA Cer tificates from the same pool (if obtainable) or other GNMA Cer tificates in the cash","page_number":60,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"8a7a261c-d043-41b1-80a0-5d34f8826988","block_type":"box","text":"market in order to maintain its “cover.”","page_number":60,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"e3e1818b-e7c7-4ef5-b58d-30cfe3d25b5b","block_type":"box","text":"A GNMA Cer tificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":60,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"5802f239-b37c-4987-8cdd-deb6e95d5594","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":"3e45af46-edbb-433e-afea-783c15fb7c91","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":"bdc28ed1-8ec7-4acc-913e-66fdb9366a05","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Cer tificate with a cer tificate that","page_number":60,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"16d49c27-71f6-4842-95aa-765c6416fec5","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Cer tificate, it may realize an unanticipated loss","page_number":60,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"e76f3735-4c74-4ceb-b8fc-0b5ea353655c","block_type":"box","text":"and incur transaction costs.","page_number":60,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"72fff4cb-e73d-4602-8acb-22d7c99c1326","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":60,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"0a0eeb1e-3b6e-4a6c-b987-5ef6f751a199","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":60,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"02ccb3de-60ab-4da3-8a44-2eacd899ff21","block_type":"box","text":"a new swap agreement or to shor ten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":60,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"4d790982-35d7-44eb-a753-5a60d7be411b","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":"3c1e5b36-82b2-4a6e-ad4b-75d0b9d7338e","block_type":"box","text":"i.e.","page_number":60,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"a8bbcade-bbf3-4d97-ac21-2b2eb5702654","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":60,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"35ae6145-9e35-43cd-8c67-c0f364d6ddf6","block_type":"box","text":"Depending on the terms of the par ticular option agreement, a Fund will generally incur a greater degree of risk when","page_number":60,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"8b47b461-c8ec-4c69-b14b-ba0a32f2e0d3","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":"bd5dc406-5580-4eac-a518-b073bf312e4a","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":"c83bb44b-cecb-4d4b-8a6d-b6261d30fc65","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":"ef663f77-c1b3-412e-bc4b-ead8afa22952","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":60,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"831b638d-655c-48d5-a035-e190906fd52d","block_type":"box","text":"required, to be cleared.","page_number":60,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"83a1a617-1eff-4d5e-8701-22e9553850dc","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a par ticular investment or","page_number":60,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"225a5a1a-cc8a-4f57-a00b-3406eb01f8dd","block_type":"box","text":"por tion of its por tfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":60,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"998aed4d-72be-4677-90d3-a5c33b4fb5b4","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":"219ba5a4-33d3-4594-8576-eaa357f58a5e","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":"2fa2b145-dcd4-47ab-830f-fffe4dd9d6c7","block_type":"box","text":"Derivatives” above.","page_number":60,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"1fd9deea-89c0-4352-87f0-9036cbbd2d48","block_type":"box","text":"FLEX Options.","page_number":60,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"8de46064-65ad-4cb2-896e-b526e0c77fc5","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":"9d01c2be-da53-474c-ac3e-414dd699c297","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":"2e898424-6bbc-4b0e-bc86-ad6fcbf6c8d6","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":"2af732a0-1663-4c0e-83e3-06ec2c4e744e","block_type":"box","text":"exercise prices, exercise styles (","page_number":60,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"3a157efe-009c-427f-8b82-30f4ce155b3f","block_type":"box","text":"i.e.","page_number":60,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"84c634c9-233a-482f-a35a-8583b1cf6de2","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":"b120ce7b-326a-4efc-b436-51d7fa86fb73","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":"e47b0265-e6ea-4c84-ba05-600454b6adb5","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":60,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"fcabfdc7-c45e-4155-81cf-40caf9e441cc","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":"11a8f4e0-30f2-4525-b633-297972c83a00","block_type":"box","text":"reference asset at the strike price. A Fund’s por tfolio may include several types of FLEX Options, including both","page_number":60,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"f4873e1f-f311-4f4b-9d93-ec58aa76d681","block_type":"box","text":"purchased and written put and call options (as fur ther described below). The FLEX Options are all European style","page_number":60,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"05572687-9b99-4731-8cbc-a8112d3e551a","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":"29df00fc-d213-48e9-854b-b630b458cd02","block_type":"box","text":"FLEX Option’s expiration date.","page_number":60,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"effe76e3-da7b-4920-9b6a-6c94bcb0a58a","block_type":"box","text":"The OCC guarantees per formance by each of the counterpar ties to the FLEX Options, becoming the “buyer for","page_number":60,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"852e5cf5-c8b2-480a-9643-9064e02f092d","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":60,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"1eee79a8-8625-40ab-86b7-4df8a951254b","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterpar ty risk with the OCC and","page_number":60,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"79bfd1e4-2b97-4041-8995-08b087d77081","block_type":"box","text":"subject to the risk that the OCC may fail to per form the settlement of the FLEX Options due to bankruptcy or other","page_number":60,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"f7527254-a681-4955-932a-34a15aa64ae3","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to per form its obligations under the","page_number":60,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"a2d5fc96-db43-4195-8c62-a8fd5a09e2ec","block_type":"box","text":"FLEX Options contracts.","page_number":60,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"507b5aaa-0d54-4fd7-a7ea-79b7d664a12c","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":"7519e119-41fc-4785-9ed0-92e131ae4e83","block_type":"box","text":"Options for cer tain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: cer tain stock","page_number":60,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"a5c97803-340f-4594-9ac2-608d5b76db01","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":"c489c109-a283-4fbc-9746-e10f051faad6","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":"ebdc1214-42f3-4a34-bcff-476a105d22f6","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":"c2234489-f787-4db0-84f6-b91f7fedf52f","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":"1e1739cc-a1f7-4b7e-b425-bb3937c8c9fd","block_type":"box","text":"II-22","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2efcfffe-55ba-46f4-b96d-778ad159224c","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"681bba77-4287-4a22-99d5-340e86856c27","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":"e0568cfb-348a-4464-96eb-3a52ce03cc37","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":"e9d68e38-e673-4967-9d50-08ebc9482a69","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":"ba7b0224-a35d-449a-b58c-28f422754a1e","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":"11876d29-3491-47be-8f19-b2024d79810e","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":"612a1564-d68a-4451-89d6-bd3a31a0c435","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":61,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"a268d928-6ed0-422c-a6af-fee83ef55d36","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":"e9b103c9-0c7e-4743-bfc7-2f9e2d797ad9","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":"7914866d-1138-4ee4-a856-f336a08cc8d4","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":"ddc6c5bc-f719-429b-8a3e-7d1497af1cae","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":"7ec24cd8-d806-4844-9d73-4a2ae9bfe9a2","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":"adabb2ca-ab8d-4bf4-a6f4-352afc57b403","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":"aa988794-d57d-41f4-9719-6953ec8727a1","block_type":"box","text":"expire unexercised have no value.","page_number":61,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"49af41c3-d97a-4955-9547-840157a4a62b","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":"724ffba3-d39f-44b5-a25a-ba6b26b97dca","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":"ebea15c5-78fb-4520-92ed-c11ae3e69165","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":"7a9f9019-493a-4cee-9277-000a06366b69","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":"ab7c4337-b9e1-4538-9ec6-3d01feb802a7","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":"9df71824-ba6e-4f64-bd13-448b47fd9e49","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":"0bad2fea-3e0b-48ad-916b-530cbf4a8f28","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":"6cb93337-357a-4b60-9f7e-7d5f8e3037d7","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":"ba2dcd85-d08a-469d-b2eb-5cf71dd52fdf","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":"41258fc8-a325-4337-90e7-bc218eaaffbb","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":"f4c217f0-91d5-4f14-b182-76ea6d3ae856","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":"9a63199c-2951-4341-b4de-fc52fb4596e6","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":"852b5119-2568-49b1-a22e-adab3edc11c8","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":"daa3e787-bbf0-477b-ba43-f5c8c1b28f5e","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":"7e882a97-0084-42f5-b6d3-33c2877aeec5","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":"d8246cc2-0ea9-4704-b342-b6c25e50cdaf","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":"53b758d5-49c7-413d-9a9d-6a996cdf8b70","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":61,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"a0ef3352-815d-4669-870a-835c422575ad","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":"9c725652-9355-46df-a1d6-37f38399aab1","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":"b74efb2a-6779-4cb4-9fa1-8b3ce88788d4","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":"df59a8fa-3bd1-4518-b2fe-7195db1867a8","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":"fa866be3-2213-4797-a2d4-acccf034c44c","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":"6e933ccd-8949-4747-9504-920f2affd0ef","block_type":"box","text":"Foreign Exchange Transactions.","page_number":61,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"0d1790cb-7d92-4a21-9557-7472d55e5081","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":"10525ae9-b859-4fc3-ad45-5f44ece72977","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":"f4a694c7-9aa8-4b0a-89a0-ef0f3d321fd8","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its por tfolio","page_number":61,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"82b0f358-25aa-4ff3-9672-537dcc766814","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to cer tain Funds, to seek to enhance returns.","page_number":61,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"3da1ae0f-59ec-4159-a6ef-a84d621dd925","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":"52175edb-a1a4-471b-bd96-fd2d80e422a8","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":"a9fad5b8-f838-44e8-a2ff-db74b4b8e178","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":"45f3e6f3-3710-40b4-b8bf-af2ad3757b94","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":"d458a1cb-c89d-4cf7-9f29-4c1091be3bfe","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":"51505398-3e2c-4014-af76-5352227f91bb","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":"e6dba9db-dc2c-4409-83f5-1f51efc4657b","block_type":"box","text":"par t, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":61,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"b3b48c14-5fcc-4c8a-92c4-52953afead71","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":"8b03d63f-b07d-4b35-b5c4-e1d8c7193055","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the oppor tunity to profit without limit from increases in","page_number":61,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"681b90af-3059-429e-b586-99c5efc0dd3e","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":"3dcf22f6-27a3-40ef-a751-b84ff39e7eb8","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":61,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"75230e4c-107c-42ac-a860-e5826bfadee4","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":"07530052-dec2-4bdc-935f-8aab95f67467","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":"7d9e21c8-bb9d-4ab8-96b9-d6b0771fd188","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":"cf2e48f8-c663-4650-83bc-0525f444efec","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":"d3f2d6e2-819c-4f27-914c-ed36cc606b84","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":"a192c5aa-32e8-487d-8191-d1a7a6aef72f","block_type":"box","text":"II-23","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"12840e1f-29a5-4eb0-aaa5-dc8f1b6bfe3d","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e8c8a566-e748-4f0b-b670-c94f572d10d1","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":"e2a9cbea-c950-409b-8b65-9bad45c62e91","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":"fe7b1204-c0a3-4b62-8a2b-48083a43d7b8","block_type":"box","text":"Fur thermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":62,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"03fb0e95-4907-47e9-b74e-2999ba7ca37f","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":"a703f6c0-382a-4c27-ab7a-cc065cf9de13","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":"d51a11d1-a8b7-4d9e-8859-d81f83699466","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":"8587bc5b-006a-4eb3-bbc5-28e7bfb5f408","block_type":"box","text":"par ticular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":62,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"00f5d353-4973-4eb3-a632-16403710783a","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which cer tain banks","page_number":62,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"fa2e74fc-724a-48ad-ac4d-469224e8317d","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":"fa1ff24d-2ae9-4ae6-a4cf-d55c0095794c","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":"9145e59f-0787-4786-bb14-a49688a752df","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":"be83d46b-dfc1-49af-b7cd-61fee3d15659","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterpar ty risk. Any such failure to per form by a counterpar ty","page_number":62,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"1e165312-0b6f-426f-9bc7-598d9ec9da3a","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":"5bd24762-5f32-4132-8315-19334504dc37","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":"6aa2d24a-1a37-4ba8-a6ba-1ff77316e2e6","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":"913cbd83-fcdc-4a91-a6fd-84c710fbe08a","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":"c0845fc1-59c4-400f-b375-fcb0c1fdae93","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":"c9c53f2e-0fd2-4286-908a-ae04db7482d5","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":"8a0d4977-6abe-459b-ae68-ffa52b415ddd","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":"b33535c2-2228-47df-81d2-7be7e9517de1","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":"7a0a88b5-e533-46fc-b72d-f60c5ee3056a","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":"18caaa5a-37e3-4e59-8f5b-9843e3d466e2","block_type":"box","text":"involved.","page_number":62,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"f7e11015-f501-4e04-a1f1-ff391c632247","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":"2e141f45-fffe-456f-94f1-8fdb626844ba","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":"d1810c89-6c0c-4c3b-b06a-384757af026d","block_type":"box","text":"denominated in such currency.","page_number":62,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"9c9b444b-1343-4899-9a22-affb387dc120","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":62,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"5dfb86ef-1c2e-4838-b5d4-9b93af6445fa","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":"5fed8e51-8e4d-470b-bf34-c5c9429cd133","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":"b6c50ccd-238f-4420-8b5a-9fcd2f7ae139","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":"b7352f00-84cd-48a6-ba08-8a5a95db7f34","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a por tfolio position, or, with respect to cer tain","page_number":62,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"e889af1f-11f5-45e1-806d-1382086d4643","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":"1e916093-9d9d-4f35-bbf4-40142073f8ce","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":"922e0532-1c2b-4e81-ad24-4fb9aeb30689","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":"79e0c561-4f86-4884-a45b-146203de9c8a","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":"88846f32-9537-42c4-b227-f6a9e6c85da6","block_type":"box","text":"hedging a por tfolio position by selling forward a currency in which a por tfolio position of the Fund is denominated or","page_number":62,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"e8c7b670-1c4e-4f42-b95c-e232d564fedc","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a por tfolio position in the near future. A Fund may","page_number":62,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"9774269c-f358-45e3-af0f-e186d5ed0b48","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":"b0e604fb-cd76-4708-8bde-952f5aa08ad1","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":"34822887-c1eb-4836-b952-e97c4a980088","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":"81bfeaea-c355-41f6-89d8-c0beb844c3bb","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":"bf2d401b-600d-4a26-8abf-2f116e22abb1","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":"06cfae67-1f56-4b81-bcc6-54266042799a","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":"da60471b-f5d2-4879-8e58-34f7b46831ed","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":"ac08e04a-adeb-4fc7-bc9f-41306add40ed","block_type":"box","text":"of existing or anticipated holdings of por tfolio securities. Proxy hedging is often used when the currency to which the","page_number":62,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"f0d0b045-2bce-431f-b321-c3d0c859d4e6","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":"3c3536e2-2793-438a-b299-86959ca6add2","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":"331124ee-cff6-4b47-abc5-ab2db80df323","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":"8d4399ff-505a-4446-9d09-cdf2bc51d844","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":"0aa75860-49c9-48e2-97d7-2ec740978a08","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":"55c55bf6-3d1c-4cb3-adc0-fcd7f2c9f926","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":"faeff724-b35d-4a55-888f-25dd96498360","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":62,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"29349cec-47ff-482e-8984-4a4510cafc15","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":"8105761b-7661-4f30-be75-bef4a8deb8ca","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":"78d96416-1274-4f5a-a7f4-0bab8f22d2d3","block_type":"box","text":"have por tfolio 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":"16174c6a-3a76-40a3-8c97-ba6b3f5ca3c6","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":"cf734a66-a196-4ab7-8f07-dbf2d8e83899","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":"c17f4669-255b-436c-87f6-38a0092d2ca5","block_type":"box","text":"II-24","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"baefaccb-a297-4208-9294-881e0b82fc01","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"39d11529-3dff-4176-935d-980b2c5e478e","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":"e8ba3d4a-c0cf-4d86-864e-8c7f11d8de48","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":"79050dc8-5bdc-4a3a-9605-3cff26510195","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":"2e6e0890-56c9-4626-b468-3ed997349b4a","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, shor t-term forward contracts that may be thinly traded or are denominated","page_number":63,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"f725e379-05bf-4b15-8186-7d2c7208a38c","block_type":"box","text":"in non-conver tible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":63,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"7cfea258-690f-4928-b841-e96da7ff46d3","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":"24b8edb6-a01f-417c-b881-5585e9f72ac7","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":"09cadcf9-38af-45eb-ac71-9da68cc1fb31","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":"c00ab80b-d171-4144-a702-ba9cc061e61e","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the par ty receiving payment. NDFs are","page_number":63,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"b0079dcf-c67b-4dbc-8d92-b170011ff23c","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":"4fec772f-6673-470a-927f-c2a9fb84912b","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":"aa0aff5a-2475-44a7-8a3c-9cea1ad42ed9","block_type":"box","text":"traded.","page_number":63,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"efbef8bc-8643-4ef3-a76c-dee42a4f3160","block_type":"box","text":"Currency Futures.","page_number":63,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"e22702d2-48ba-4b28-ad74-0508a1e8da61","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":"9bb7f09c-d951-4f5a-9ae1-4ec230d67b3d","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":"f620ba3d-9a77-452c-9435-bcb662811387","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":"8fd0dc5b-f4ac-4710-8895-b1688b884ad3","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":"c41b0676-e2d1-4240-b6c7-6b6f0f07b077","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":63,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"1a04cf3f-ebaf-4f6a-9e95-11a6708c8daa","block_type":"box","text":"Currency Options.","page_number":63,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"c748ac11-5f10-4736-8917-16c98bc558ad","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":"f0591361-ea56-43db-b06d-fc03681c8d77","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":63,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"f2d14131-34c0-47e3-8ac4-abfe2354cbe6","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":"2bdade6d-e2a1-4ee1-ad20-4a096f5f73ab","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":"b9a49b77-5f7b-41a9-ac14-6cf51f3da1ce","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":"035df0a9-752b-42e1-97dc-a18bd1312d68","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":"c0617f1c-99f3-4cd8-85f9-ebcc926a2359","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":"3e29b1b5-a42c-4339-b954-1cd34f973a61","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":"cdef4295-d7c1-4f4b-a45a-94d5660b4e7c","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":"db9e8a51-d923-4ca8-850e-a34d8db28805","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":63,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"7d9eee7a-72a8-43cc-bb6f-868be9281adc","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":"ecd831de-9e47-4f54-8ffa-2d45025aa39a","block_type":"box","text":"Currency Swaps.","page_number":63,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"7cc64247-cfbc-47ba-b12b-7c66c167accd","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":"7dbd7765-465f-4832-a378-fe1b0b3ecffe","block_type":"box","text":"hedge por tfolio 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":"5bf595dd-1755-45c7-a5f5-9dbb6d14b057","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":"d1c41a82-7107-4bec-b8e3-3ac7b49d52f1","block_type":"box","text":"exchange of the rights of a Fund and another par ty to make or receive payments in specified currencies, and typically","page_number":63,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"e5d2f5dd-c606-49b2-8564-b5a842382077","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":"8435cd3a-3fc0-47bb-a237-0c06326713ba","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other par ty to the","page_number":63,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"c2baf6d2-1dda-4243-935f-f73284759128","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":"9244b5b0-af5d-445f-b2c8-0917ad1b06de","block_type":"box","text":"Distressed Securities.","page_number":63,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"653a50fe-4f72-49a8-ad8f-b380140b4626","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":"34585a75-6cbe-4514-9031-aad45b5da218","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":"8ea390b6-37cc-45d9-bf32-199698314dab","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":"a0bc14ce-4a87-4a06-8f06-a1cf01139c27","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":"8174b786-e7e0-4dcc-9f17-fb58b62a4a6a","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":"70690ca4-c555-4b65-9a9b-94dca5233bd5","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":"50909936-271d-49ae-b30d-1669ba853965","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":"b6f819c3-90ba-4f6a-aa21-fe23ecfb22d1","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":"4e929cad-4253-4b83-97ad-44f258494345","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":"d6f78837-f12d-40b1-9608-65a8f5fa7d50","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":"f143fe85-3aa5-4fff-8e75-808b638762ca","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":"507b458f-636f-4b7a-8bf8-f41d576b0e17","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":"9ed24d2e-625b-4405-904b-dfa2b5d7223c","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":"cdda6c25-ca9c-4cb1-84da-5ba5d0336e4c","block_type":"box","text":"significant uncer tainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":63,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"2b0520c0-67d5-491d-a544-84eff2e5e2a8","block_type":"box","text":"Fund may be required to bear cer tain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":63,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"ca9b5a5d-654c-4c2f-b17b-8d8f3445046a","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":"116614e3-02f4-4ad4-9352-b56313276aa5","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncer tainty as to","page_number":63,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"26b4ffc7-d756-4dcd-b971-2da29b834c04","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":"eea04386-7bfd-42ab-9f16-ef5f8d3f335a","block_type":"box","text":"satisfied (","page_number":63,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"342560e4-b1ce-48e7-85fc-ee1bbc73591a","block_type":"box","text":"e.g.","page_number":63,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"cba589f6-1e0c-49b8-b0c5-aada556073f6","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":"4b2a14e4-e107-468e-9bb7-3ce8447eef93","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":"0a5fed26-4fe4-43af-9c94-957d95232e4c","block_type":"box","text":"II-25","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"02f4b005-9e26-42f0-bfa8-23f9b888d5b4","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d482e90d-4ce6-490a-8ead-12072b426ed3","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":"a3c5fe74-50ae-4df4-addc-793e941aafd3","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":"ffae9e6b-8bf8-40d8-ba3f-e8902fc5827e","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":"2443320a-216e-4f60-9bad-46ad8002fb0d","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":"6feec841-995f-4396-a92e-4b2c488c30a2","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund par ticipates in negotiations with respect to any","page_number":64,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"05c5d3f8-31be-4cbf-89f1-cadabe8d0f54","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":"f7202b89-a572-4251-87c3-4a498deca664","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":"1703ab2b-6753-476a-b045-31e8abd5cb3f","block_type":"box","text":"Fund may have a more active par ticipation in the affairs of the issuer than that assumed generally by an investor. The","page_number":64,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"7b2bd942-c8b5-4745-a044-f98c6ca1361f","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":"d1d742d2-6b44-4e47-935d-a25ba98222d2","block_type":"box","text":"affairs.","page_number":64,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"3fccde16-f02e-4631-9913-5962f78d522a","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":64,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"63addfff-22d8-4e43-8468-3fdf86d18843","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":"cf9f07f5-276c-4f82-9fb5-f9b60d28fb17","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":"e0deccef-e66b-4566-8be2-06c9a52b7dc7","block_type":"box","text":"consider ESG factors as par t of the investment process for the Fund. Fund management views ESG integration as the","page_number":64,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"75d62c6c-75ce-4d86-bc57-8b32cb86e99d","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":"a2402451-5337-4428-8724-8228e294f9b0","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":64,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"4a31d1f1-370c-4f53-88c3-bdc65427c5df","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":64,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"b0d0dbf5-49d6-40aa-bb0d-87499b23bd00","block_type":"box","text":"research across the ESG risks and oppor tunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":64,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"103bd116-1354-4b27-bd37-8303edcc02ac","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":"cd118c73-cb49-4f30-9c4f-8867e8366e97","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":"3030d5a9-b023-491e-813e-068596cad33c","block_type":"box","text":"Cer tain of these considerations may affect a Fund’s exposure to cer tain companies or industries. While Fund","page_number":64,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"2f36ec21-a026-404f-919f-21d7ba9ba5ee","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term per formance,","page_number":64,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"430e6e1c-f8a7-4b4e-ba06-b4087643eaab","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":"8824b0d2-b6e7-4404-b267-52dc288a74d4","block_type":"box","text":"Equity Securities.","page_number":64,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"25b12750-f1a0-440d-96ab-de73bb58b6c3","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":64,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"4aed7c27-f1a8-413a-a9b9-710b213c32ed","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":64,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"8fec12e0-373f-4220-a0bb-f9af9201339a","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":64,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"07faefed-c5b6-4de1-8ce9-3e0a50ff10f6","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a por tfolio","page_number":64,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"fc561bd7-9b57-4889-88a9-85691ed357ec","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":"cf55044c-9e7e-4e67-928d-4d8b33ad9cd2","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":"233784a0-1636-4f3b-b95f-222b9a8820c0","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":"cc8793dd-31ac-4a32-a7d2-b2c6e0fe285e","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a par ticular industry or industries, such as labor","page_number":64,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"3c85822e-c040-4437-aa49-92f3a42e3851","block_type":"box","text":"shor tages 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":"f00fed81-5fb6-4196-8b7b-1defb970065a","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":"34205445-d9ad-484a-8a46-28c07f455caf","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":"e278e4ff-2bf8-4a35-a8ac-c1f716eb2342","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":64,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"8291f07c-ee03-467b-a8c1-73b4cccccd46","block_type":"box","text":"From time to time cer tain of the Funds may invest in shares of companies through initial public offerings","page_number":64,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"927e3a69-55d7-4d31-a27d-4b7e7d0c46f0","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for cer tain Funds. There is","page_number":64,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"1feafd20-c5d4-407d-9884-01fed74c9be7","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":"de534320-baca-40f1-b7f4-2c934cc80107","block_type":"box","text":"these past gains as an indication of future per formance. The investment per formance of a Fund during periods when","page_number":64,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"8e649ce0-4112-468f-b353-e0f47631a00d","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":"fa7d7304-bff0-4fbd-a99f-eea955afc424","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its per formance will generally decrease. Securities","page_number":64,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"efabf55f-809e-44ed-8f72-6a361d927b6a","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":"acea4d6c-aec6-4e73-8926-2cc684dc5a36","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":"6ae9e284-92c8-4392-af88-17509c080044","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shor tly after the","page_number":64,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"eb11ab48-507d-40b4-b588-af59c8ad9165","block_type":"box","text":"initial public offering.","page_number":64,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"de7d624f-4c09-4dbf-8d05-2087f5b6db4f","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":"87b6dedc-2b73-4d67-b16c-84842c440bd4","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":"4cddea6b-6150-4c43-93ae-c86147941d8f","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":"eb819c2c-c930-4635-a509-f14e5807e333","block_type":"box","text":"companies, which tend to be less well known, have shor ter operating histories, do not have significant ownership by","page_number":64,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"08189738-4d4a-4119-b6f4-d962852c5c75","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":"be0c7735-1c9c-4110-b4c6-d3051dd12bb6","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":"3cd8b577-b021-4332-a3da-441a42b5fc3d","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":"ad6e9b37-178d-407c-b342-88856d71a721","block_type":"box","text":"more established companies.","page_number":64,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"1da04244-bf00-4725-89a7-9b72ed3b7b0f","block_type":"box","text":"II-26","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9119dc55-623e-49da-ad52-7ca448ceebe8","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"611f10aa-d2c8-49fe-98a3-4931efc59ac0","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":"be9f7f22-2aa0-4c2b-aafb-5f910ef88fb2","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Cer tain of the Funds may also invest in shares of","page_number":65,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"ad9f8557-eae0-4fd6-8816-ce1754f9a438","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":"6e0af0fe-328b-4f69-8f64-2fb78aa26612","block_type":"box","text":"below.","page_number":65,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"23844091-dff9-445e-82eb-ac65f4d9a2ee","block_type":"box","text":"Real Estate-Related Securities.","page_number":65,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"a779c103-64ec-41a3-89fb-16d67151c8cc","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":65,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"396c938d-7c8d-4020-9e8e-3f10993d6937","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":"b481dd9c-67a1-4da5-9ce4-354d34034892","block_type":"box","text":"cer tain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":65,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"1bcfd876-911d-4247-99b1-b56afc4e0e00","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":65,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"71372918-b82a-4f17-8ea6-302171b6a094","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":65,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"76165053-a30b-4a62-a134-4c32c97d9ce5","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":65,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"36169333-429f-47f9-8718-1934d8b274c7","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":65,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"30eacc09-0348-490b-934b-b3ec93247b75","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":65,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"486b3320-0538-4b9d-adbc-de8f8ea61b90","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":65,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"bacba844-6b02-40f2-aad9-8abe20ca39de","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":65,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"9039d39c-6fe0-443f-b724-c1ea7994542a","block_type":"box","text":"rents; investment in developments that are not completed or that are subject to delays in completion; and changes in","page_number":65,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"3f3147a2-227e-4458-a1f2-0aa42931a097","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by proper ty","page_number":65,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"9a4a85be-9213-4825-934d-ab601bea373c","block_type":"box","text":"type or in cer tain other respects, the Fund may be subject to cer tain of the foregoing risks to a greater extent.","page_number":65,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"39589adc-d082-4a8a-b171-e574f560b97e","block_type":"box","text":"Investments by a Fund in securities of companies providing mor tgage servicing will be subject to the risks associated","page_number":65,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"72f976c3-6dda-4f98-b351-daf0bcd8df6f","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":65,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"90b93d75-864f-4827-98fe-bd464f024660","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real proper ty acquired as a result","page_number":65,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"f15c3710-0ccb-49ee-b11e-7b6444083552","block_type":"box","text":"of a default on securities the Fund owns, the receipt of such income may adversely affect the Fund’s ability to retain","page_number":65,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"ebdb717b-9ced-4b6f-b099-228dce4eeb53","block_type":"box","text":"its tax status as a regulated investment company because of cer tain income source requirements applicable to","page_number":65,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"b7a1e22a-2e4f-48b9-ad07-2ea163bfe6a5","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":65,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"26ff06d3-671a-4b71-9a7a-5f17beb18b0f","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":65,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"9ba3168a-6db3-4bca-923a-c666170b971c","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":65,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"d7f52921-ef4a-4837-a279-5b6ea97763ec","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":65,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"9d8369c4-0149-4f60-8ad0-6754ba00cd79","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":"a0f7b833-08be-4174-a15b-b6c22bf9fff7","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":"2afbc9d0-a9fd-4b09-b54c-e87521523271","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":"b1fdc5ef-ad20-4fde-83ec-655df5fc2dfe","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":"36466029-3ee5-456e-96c9-a656917709b5","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":"aaaed21c-c006-4b43-a929-5294b35e2577","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":"1889c42c-e33f-4b30-817f-3b9a1bb5ac0a","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":"0cfdf7b2-e7a9-4832-8271-30dbdff820d7","block_type":"box","text":"result, the disposition by a Fund of por tfolio securities to meet redemptions or otherwise may require the Fund to","page_number":65,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"5407bbfa-4d18-458c-924c-836cbe2e04e4","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":"0d47a17c-3055-426a-996d-04f15e55fb64","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":"78e5b155-4e75-42c4-87f5-33dd01bcbbcf","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":"527d3b43-74e6-4283-9ab6-9a6b914ffef5","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":65,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"251b418a-6646-4a00-a104-a414757d285c","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":65,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"cdba6f3d-1afc-474a-94eb-298fa14086ca","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":65,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"45387eb2-bdfe-4f19-8c54-773dc3fa6b6a","block_type":"box","text":"Fund management believes that relatively small companies may have the oppor tunity to develop into significant","page_number":65,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"6ef8a40c-eb9e-4c58-87de-86ad4baa826e","block_type":"box","text":"business enterprises. 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":"b4985c05-7fb2-46d7-8e58-11c8e05121c9","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":"9bb81621-f053-4d48-8163-809799c849a7","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":65,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"37ad8b12-6c1b-4bfe-bf43-6d4afa909fab","block_type":"box","text":"appreciation during varying por tions of economic or securities market cycles, as well as during varying stages of their","page_number":65,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"445e2111-9f33-4fef-af79-527073c0ec25","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":"420407c9-e58c-458c-bc6c-ca1ac4c919bf","block_type":"box","text":"cycles.","page_number":65,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"836ab53d-68f4-40bd-bd64-0d2cd8929fde","block_type":"box","text":"Tracking Stocks","page_number":65,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"0923fe2d-77d5-4fea-a4ab-a8f4a8261fde","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":"ecb1d601-dbab-46ad-ac66-867a37d57f37","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the per formance of such","page_number":65,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"037f11cb-ca4b-4723-b76d-9b2f0c47806c","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":"1bd27e89-5211-4838-970d-4fe876e12a9b","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":"875b345f-0790-42ba-8c66-e5ca94363de8","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":"3b677202-49de-40f5-9ea5-03ef4c7a16f2","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":65,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"34585840-e002-46cc-95ab-5ecb5c76afcf","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":65,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"aae8dc54-68f1-46c1-8940-23e5caac17d1","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":"744fb123-69ac-4832-aef7-99b30c466498","block_type":"box","text":"II-27","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b282c3aa-9c89-49ab-8ec5-577803200842","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"19709849-5f7f-452d-adc1-78372ba2f755","block_type":"box","text":"are based on the per formance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":66,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"9d825685-6a1d-42ce-ae78-6abdc5f8cce1","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":"87d27572-e91d-420b-9730-cb3e484846fd","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the per formance","page_number":66,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"3411dc7c-63f9-4629-84f7-00f5e37cd73e","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus cer tain fees. Unlike","page_number":66,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"1704092a-346e-44d8-beee-30669be82b75","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":"e91e120b-4e4b-4e39-bd83-ea01dbb3a5c8","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":"dd1bead0-47cc-4be0-92fc-acd6833f58f0","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":"a71caf52-dcf2-4dca-97b8-0453373f7826","block_type":"box","text":"per formance 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":"35554fc5-19e1-4344-95c4-c4a17ef6e076","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":"3fdef8f1-2d05-4715-8d9b-8fb4ddfa4a88","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":"1e1f7452-a181-4f76-a2e4-778626deb00c","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its propor tionate share of any fees and expenses borne by the","page_number":66,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"fb03e4d0-9b1b-4e45-a169-6761909f9234","block_type":"box","text":"ETN.","page_number":66,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"9aea9ea5-7f0e-4a04-b90f-d42d190f0ec0","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the per formance of the reference instrument.","page_number":66,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"d09714ad-91a7-4a08-b03b-b8e57294097a","block_type":"box","text":"ETNs also incur cer tain 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":"ccf71cf4-2f8b-4009-9b34-e3406e9f44b1","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":"f7a0da8a-3938-4d02-b5d6-880284708dac","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":"5b4d0fed-8a90-4834-b364-5dc62dee13d1","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":"98210c12-ae2c-45af-88dc-0767ea5b3a5b","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":"6bc09fd7-87da-481b-ae3f-047067cb7e9e","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":"be21eac6-505f-4606-92e2-743a9667406a","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":"952fc83e-3be5-4f7b-b1ad-d2b00670f476","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":"fcb4b63e-ce4f-4307-af5d-11b1fec19838","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":"ae3c9826-7d80-4917-b0bc-0e2b99bdc558","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":"8fa60574-dfaf-4b02-bbc7-c1197afeb486","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":66,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"2c720359-1254-41c1-a592-8ba30fc4a038","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":"eb54e2ae-3eef-460e-b510-821074c08f4a","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":"466aae24-7db8-4642-bb10-031791f950fc","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":"c93d101e-265d-4cde-87f9-ab9bef430cb5","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a cour t may not","page_number":66,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"ca00b339-3b76-4adf-ac19-f4d41dfd1ef1","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":"bc1d9cee-d11e-43ca-9f43-32db96d3f7b2","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":"38a3d38e-3a44-4c7f-8afc-d6e881f89cfe","block_type":"box","text":"Foreign Investments.","page_number":66,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"b772245f-985c-4780-a4b4-679f374c3353","block_type":"box","text":"Foreign Investment Risks.","page_number":66,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"e651867c-d481-487b-96ec-b0447446d32b","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":66,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"155a6b32-50d4-4e4a-b0b2-504a762bf986","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":"82b125a8-243e-4fe3-a0b8-413bb5d9caf2","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":"80099b51-f7e6-4ebd-b693-451b354874e5","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":"ebf2d0f2-43b7-4201-90ef-d21959b239f4","block_type":"box","text":"Securities issued by cer tain 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":"db34df3c-406e-492f-b383-c7f8f702ff9b","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":"e2c7edfe-7529-46da-9cbc-c106f0b24c23","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":"de792a6c-c315-4e30-9929-70dd55d2bfb4","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":"bf6141b6-bbbe-445c-b08b-dc918cd1dbaa","block_type":"box","text":"benchmark index.","page_number":66,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"cfb5a128-0663-4a43-831f-dd77feff5f01","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":"6c380eb9-fcc3-43fa-932a-15c1f6277c10","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":"1fb2834d-a3a6-4858-95fe-f9e3c02d278c","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":"35ad39d3-a7b9-4664-8d7a-22f351d81b28","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":"6901e900-1e3e-423c-92e2-f82bbce072b1","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":"c22a7196-7672-4075-8ab6-e8a0db2fb625","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":66,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"daf6550a-2b32-49ae-a470-d9f9b06cf111","block_type":"box","text":"securities and zero-coupon securities.","page_number":66,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"95a3c758-4820-447e-82f2-6454f63045a8","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":"32341d22-0235-4f83-b027-a6f06f93e5d8","block_type":"box","text":"taxes.","page_number":66,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"72d09e9c-7053-4f1e-8be0-dfa8dd5831e3","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":"60a68d63-53a7-4497-98da-9f51b7b9b3f6","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":"c9bf5a12-6381-4022-a9c8-35f624ea7ca6","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":"de2abc30-645f-4e53-a3ee-4458ab8102ef","block_type":"box","text":"II-28","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b4a63dc7-bbd5-4bc3-8d1b-e54a3a3a0a9e","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5942c609-e87a-4139-acf6-863a46de8c56","block_type":"box","text":"underlying security (","page_number":67,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"a54c9ddd-b24a-42a4-aee1-e9e4e837166d","block_type":"box","text":"i.e.","page_number":67,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"54505853-9050-4b17-899b-ca42dec00429","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":"5683283d-e359-477b-b356-5616eadd4cec","block_type":"box","text":"Fund is likely to be greater where a large por tion of the Fund’s underlying securities or other instruments trade on","page_number":67,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"937e60de-c6a8-409c-8e06-0372e4a24b04","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":"d1382814-c2cc-4507-ad7e-197d55dceda6","block_type":"box","text":"result in premiums or discounts to cer tain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":67,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"7907be5f-a1ac-42b1-8f04-61fb4454263f","block_type":"box","text":"Foreign Market Risk.","page_number":67,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"02292fbc-146f-4d40-9277-7ad14ed5ba7f","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":"d46191d6-1b32-47d2-89ca-0003f0ccc552","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":"4c19b9ea-b7c7-42c1-856c-e2b948553e6a","block_type":"box","text":"always) per formed 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":"154aab41-2d65-4a28-838c-fff868da3c70","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In par ticular, a Fund","page_number":67,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"f7874087-4442-4398-aaa1-76ff1ce763c4","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":"b345f465-00f2-408c-860f-657eff4765ae","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":"72ba6fa2-33ce-4506-b204-83dc59ae3458","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":"682ff883-5df4-4576-81e2-ee907b90dc2b","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":"1a1635ed-5d6c-497f-9b4b-028ad0f00e13","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":"3b823d9f-54db-4a63-9b8a-402093e8254e","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of cer tain countries, or the","page_number":67,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"202d9a1e-d6dd-4531-89ac-2f3f10450289","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":67,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"2e5943fc-1f74-4a0e-b77d-6699daeb8bd8","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or cer tain industries in those countries. Capital","page_number":67,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"7ca7d39c-57b2-4347-9adb-17c11d42a93c","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":"4ab4cadf-af5a-4ffb-aa12-450e1592209e","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":"bcfbc6e7-1d8a-479e-966d-8b651e75af09","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":"5c35279a-0660-44ad-82a9-1d1af0b5184e","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":"60fceffd-387a-4d9a-894a-30b2bc306b04","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":"25825af9-337d-4854-af31-febeb1b8bedb","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":"cca3d08b-1798-491d-a853-37daea362b7e","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":"bf396bac-c0e1-41fb-85e0-f46ccef2ba9d","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":67,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"fef5c342-30d8-4882-9fda-1852b18157af","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":"e78e7548-0de4-464c-8918-c32fc414e4c3","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":67,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"6ae6b9a5-bd1e-45c2-85c5-ee68f2a6810b","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":"93f8e49b-c243-4ab9-8f6c-554d027c3c55","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":"766a7ef7-3dba-4c27-ab0f-0061b3ef9695","block_type":"box","text":"or abroad could result in appreciation or depreciation of por tfolio securities and could favorably or adversely affect a","page_number":67,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"00d05a59-6ab1-4d41-aca9-d3e1f95bb0c3","block_type":"box","text":"Fund’s operations.","page_number":67,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"a812093d-98fe-4763-a8b0-cfe432c1a41e","block_type":"box","text":"Foreign Economy Risk.","page_number":67,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"84ac322a-9746-40aa-8e4a-06a6c42a75d7","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":67,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"db079f71-f6ee-4a23-9d7f-8fefbf102005","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":"2153d42d-3e01-4791-a676-8a7348e66068","block_type":"box","text":"and balance of payments position. Cer tain such economies may rely heavily on par ticular industries or foreign capital","page_number":67,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"76d09054-f9c0-4c14-9acf-d16de36c73af","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":67,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"7999f78f-a9b1-487e-9c51-8ca6a1a07e0e","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":"3b20a0be-8d79-4f3a-9ce4-08f0c15c8cba","block_type":"box","text":"measures.","page_number":67,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"06fbc54e-d7a4-4d63-9ebf-b833b5eb5b52","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":67,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"d8ff7dc6-03f3-43de-a4bf-711f295519d8","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":"aa900368-8d03-4b48-a499-72fcfed0bd84","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":"e32ae5ce-5160-4d0a-ae2a-9c08fda8479c","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":"570d3573-f57e-412b-aab8-dd53f12af92b","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is wor th fewer U.S.","page_number":67,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"57299408-0cc5-496f-9950-183222a536f4","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":"f2039a1a-8e53-47f7-8ce2-cd1793606b52","block_type":"box","text":"that currency gains value because the currency is wor th more U.S. dollars. This risk, generally known as “currency","page_number":67,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"572da586-4488-40ca-a786-c04a49081233","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":"1a553602-c2d4-4784-9976-86afef6dcbe5","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":"981e658d-eac6-40fe-9755-db3e2ef85b76","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":"9fd3c7e0-562e-442f-96ad-f4671f355579","block_type":"box","text":"United States or abroad.","page_number":67,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"1747a2be-1e5e-4a1f-9218-698c6124c811","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":67,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"86250e26-b48f-46c3-8423-e71306b44fc4","block_type":"box","text":"Many foreign governments supervise and","page_number":67,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"9c7f1db7-095e-4f94-9597-af71df2c5502","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":"6f90ec52-e7cf-4e05-a639-23773058c1c1","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":"9d89adb0-35b4-4102-b914-50f31f5b9e90","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":"dc706082-9ebd-4839-954c-5226cb4b816c","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":"2683fdcc-5a15-4802-929d-b5b2487662ba","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":"9a8a5c0e-0a51-43ee-b2be-decf88625e90","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":"bbb60fdc-be64-41c0-918e-07e297c56bd3","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":"3b937a24-122c-478b-ba39-aabb6b0b078c","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":"a7d5c6d4-0bed-4fd3-9808-ac8f14066062","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":"012fa1ff-bbe5-4a9f-be7c-02fc74f722ae","block_type":"box","text":"II-29","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1926e194-f43c-4f41-9069-96445438fc5a","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4dbe7299-8bd7-48da-b56f-1fa102419e29","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":"2a7f123e-a783-4bcf-8ae9-e1daecefa331","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":"3e027862-fcb4-4651-888a-244e07549f45","block_type":"box","text":"investments.","page_number":68,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"4e556d80-3eaa-4c65-9b3c-de0aafae7427","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":"a77bb20b-9be0-47bb-b0de-36603a58fc2b","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":"8b3ea95f-e62c-4bc7-b3cd-d50e7de830a8","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":"a2cc3c12-b6e3-4c15-883e-d0b55eea7efd","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":"f1424c04-60a4-4004-a5f0-72b1da33623c","block_type":"box","text":"their operations. Also, the laws of cer tain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":68,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"c6a818b2-8347-444e-be07-1a7ee5f2e67e","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":"b158de0c-54fb-4a55-8590-45db68885f6a","block_type":"box","text":"for a Fund to buy, sell and hold securities in cer tain foreign markets than in the United States. The increased","page_number":68,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"ce036ccd-1712-4b51-a41b-f2fd06d07b41","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":"d1bf8cf3-e284-4787-bfc8-0a921146f66b","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":"9de4f6f8-cdd5-47a2-9ba4-70373417f4df","block_type":"box","text":"States.","page_number":68,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"6a5cf207-a228-4c7d-97dd-772e8c5ac104","block_type":"box","text":"Publicly Available Information.","page_number":68,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"a048d949-3e5e-4243-b707-c099667c97f4","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":"d48f95fc-bd73-4306-9f9c-ffef5eb4a694","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":"8ad2f78b-bf06-4771-a91b-28e38209ac32","block_type":"box","text":"accounting and financial repor ting 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":"9079939f-372e-43d8-8753-c24e9b134dfe","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":"c98c4bf1-fdbf-43b5-bfbd-850049e9c396","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":"7cbe9e16-913e-4919-974a-c147f609baa9","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":"7e86e02d-15e3-4e01-92eb-9101ccf1e4ac","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":"6727bf4b-73c6-4c90-9b2b-aed2606407af","block_type":"box","text":"United States.","page_number":68,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"a0762cdc-e814-4403-9294-a74bf835d1b1","block_type":"box","text":"Settlement Risk.","page_number":68,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"e423d5e0-bb97-4609-825b-bc85453bb516","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":68,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"f8d72905-49b3-406e-842f-79c5db2fd6bf","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":"bfeb8355-27f7-43b9-81c6-708427989141","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":68,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"72b914b1-7555-4eb9-93c2-24253c3ffde4","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":"d0975337-734e-49ea-b2a0-2601704208d2","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":"df9a3e06-2992-4bf0-bd69-178a7e358d35","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":68,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"27f13e44-95ca-4888-838b-2b22038c68ef","block_type":"box","text":"Settlements in cer tain 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":"2eb9f98a-ada2-4b57-b2a9-cf5334b2d584","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":"0758e24a-c405-40e4-b0e3-37f47db477e5","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment oppor tunities and cer tain of its assets may be","page_number":68,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"ecab026d-7268-402e-971a-2a1fa696e215","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":"7e134f49-7d95-413d-bfb1-825e89f30063","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":"78980e7e-0d29-421a-b314-c12261e17826","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":68,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"cb545501-fde1-48cb-9ec3-813fb5efe2eb","block_type":"box","text":"Because of uncer tainties 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":"70b28aed-094e-4178-af0c-7a9f3e650171","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":"9d710146-8a9a-434e-a9ad-5b7989ee27e3","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":"8f98d6c2-1752-4fb7-991a-7144e0d7ebd4","block_type":"box","text":"Sovereign Debt.","page_number":68,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"ffbc8858-e46a-4d01-a6a1-047187d355d8","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":"09cebb32-87ca-46be-bb61-5851ea8c762f","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":"f0962d52-d039-43a7-9c5c-e6ea6c750a83","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":"8d74605e-5367-4ac1-9d49-28931b461b2d","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":"b345bda9-eb53-42f5-af8f-630af9ec7121","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":"4dca8c99-cec8-4314-80f4-c614190a2b75","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":"9dd4d1b5-104e-4766-af32-08a5500416ec","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":"9757b3a1-2eb8-45dc-8400-9dbaba0750d1","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":"769a6385-7074-4e1a-a9fd-aba6f547a339","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":68,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"5a73c326-834d-4f65-be46-9f04819546c4","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":"b8a41ac0-39e6-4e71-b83e-bb056239ee46","block_type":"box","text":"economic per formance 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":"f5e1b324-65da-4844-9e8d-d76e115b85b5","block_type":"box","text":"achieve such levels of economic per formance or repay principal or interest when due may result in the cancellation of","page_number":68,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"17e51f65-ac24-4269-ac22-e3af70dca9fc","block_type":"box","text":"such third par ties’ commitments to lend funds to the governmental entity, which may fur ther impair such debtor’s","page_number":68,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"043ee00e-d9fb-4d23-89f6-a9fd55195a03","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":"131de6cb-eb4e-40e5-9fcd-dc45cb53c721","block_type":"box","text":"debt.","page_number":68,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"90f8d7b9-f675-4ca4-af26-2da1b3f136b1","block_type":"box","text":"Holders of sovereign debt may be requested to par ticipate in the rescheduling of such debt and to extend fur ther","page_number":68,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"ec6f91b2-ee1a-4c10-9a6d-0cb07ad5fc0d","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":"3cf0ae99-bd2c-418c-b135-742871b315cc","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":68,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"6b47caea-707d-40fa-9a7d-e6d17080c650","block_type":"box","text":"II-30","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"22afc17b-5f50-4910-8738-709161fce58b","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"45d8ab23-cc4a-4a62-820d-262dab60c500","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":69,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"f160722a-a42a-4a9f-b1dd-a3a6301d477c","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":"8b74f9f9-5428-4853-9b38-9081ddef4d55","block_type":"box","text":"interest income (if any) received from issuers in cer tain countries and capital gains on the disposition of stocks or","page_number":69,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"13ea40e1-66b1-4f58-bc72-bcb54603fc5c","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":"52eb4f56-4cad-4388-90f2-7344c7b15a26","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":"6d531406-5b0d-4c83-a714-ecfeef23f4bd","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":"334a2829-7c1d-460d-9556-ee1df8718e7e","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":"3b9a7e08-c4ad-4af0-a580-c1fb0cedaaeb","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":"34feed62-ea0d-41ff-874c-22b8224e46eb","block_type":"box","text":"down par tially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":69,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"7348c5a4-ca3a-4b61-be15-a78c6de79a21","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":"e4484940-8b15-4435-b5a2-676af0dac041","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":"e3932299-572e-4669-912d-de8b89f37e8f","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":"1d9b9a0d-6741-4cb8-a878-33877ebd887f","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":"7920d43f-eea8-44ce-9ae9-41ab29267b9c","block_type":"box","text":"in the Fund’s net asset value.","page_number":69,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"8acc5165-8d56-4abe-a14d-0d368c639a93","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":69,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"c8b0a9b2-2ba5-4fcd-8e7b-d9157f67c21b","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":"e6d81ae3-2f9b-4087-bcfd-30d195c9a519","block_type":"box","text":"trading par tner of, or foreign investor in, cer tain countries in which a Fund may invest. As a result, economic","page_number":69,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"e951a8a8-ba46-40d3-bece-abca4585ac0e","block_type":"box","text":"conditions of such countries may be par ticularly affected by changes in the U.S. economy. A decrease in U.S. impor ts","page_number":69,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"a9a50f46-6f32-4be5-a76c-a35f3d4db992","block_type":"box","text":"or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":69,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"dd38b2ff-7ee9-4c6f-8b38-ff7441aedb22","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":"5478b5e9-fac6-4ef3-b5ea-1472e6b101f5","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":"1dd1c58d-cedf-4072-be18-e654b431c993","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":"91546ee5-2241-497c-aac0-c5c4c245fa9d","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":"9bb17bee-9948-4225-9c6e-d0a5525a481d","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":"23030fc8-5e0a-41d1-acd3-20bd17a78fb8","block_type":"box","text":"allies, such as cer tain European countries, and historical adversaries, such as Nor th Korea, Iran, China and Russia.","page_number":69,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"1dbd3c09-7bae-4e74-8b3c-ab5c2fca6299","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":"cedfe624-45b4-442d-aee4-cb944898e78b","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":"c6931108-67a2-4e6f-b228-1cec8c411f33","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":"41e82328-2116-4d37-9c68-e00d2923dcf9","block_type":"box","text":"Fund may invest.","page_number":69,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"b5269659-89cf-4641-a02a-7e1fe0cc6239","block_type":"box","text":"Funding Agreements.","page_number":69,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"31df02fb-c7ae-4350-a3b7-1e1249eb2e47","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":69,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"1674b780-cbb9-4aae-a2d0-5bb731922342","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":"b4e35c89-bd07-45e6-a80f-5d53876b6042","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":"195c1bc9-55f5-40d8-901e-d6c5b0d8ffae","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":"7f396ab6-7b7d-4f38-a7c4-7ebe4f1afeaa","block_type":"box","text":"not be less than a cer tain minimum rate. The purchase price paid for a funding agreement becomes par t of the","page_number":69,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"7ec84f70-ed0b-48a8-aa97-a25e34620186","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":"8028cdae-7e0d-4f38-887b-61d322a31dd7","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":"c652af02-cf0e-48c0-845b-9ff1c2ecf267","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":"2a9694b8-79d5-4342-908d-cd43842ec125","block_type":"box","text":"Guarantees.","page_number":69,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"54285c64-6534-462d-a52d-e17e75d62ac7","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":"4f864a7c-8a30-47ea-ab85-d24f210d1bd2","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":"76d42959-e448-415b-92c5-178cffa0acac","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":"0449808d-fe33-4adf-b452-1fa0817277b3","block_type":"box","text":"Illiquid Investments.","page_number":69,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"1278bfab-bdfe-4113-95d7-d4ef1062e69e","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":"73d424a4-b240-4e47-96eb-f1eedda74698","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":"2355788a-4611-46ab-acf6-5efcad24507a","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":"0279779a-c12c-4651-8553-1312f0278f01","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":"729bac0d-0f74-4753-8ad8-356d43dbd95d","block_type":"box","text":"investments may become illiquid after purchase by a Fund, par ticularly during periods of market turmoil. There can be","page_number":69,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"8cf53355-756b-4239-a744-2f92d0a3e21a","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":"7ada9b33-6111-4d38-9d1e-f395fe24b61b","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":"ead068df-8e3b-4384-8ff0-f981f7a5b69d","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":"28fc3d72-6170-480b-858b-ac206f968bd0","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":"93f65301-b957-48df-98a4-bf0a5a02864a","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":"4931270c-6dc6-4941-ba45-a8d1a3bd598d","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":"8cb73294-38d0-44d0-92a3-b3a2f9dfc46a","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger por tion of the Fund’s holdings. If illiquid","page_number":69,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"ea094184-4572-4686-88e0-35e5617fe8e8","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":"e47da770-26d3-4166-a514-8529180b5aad","block_type":"box","text":"defined below) will require that cer tain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":69,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"ff477e2c-c8b6-4093-bd64-06f9ba7773e3","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":"2f1bb11c-c090-4f03-856c-7a6651f2a3d8","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":"d2366aaa-1e99-4382-8c54-14f94373585f","block_type":"box","text":"market oppor tunities. The risks associated with illiquidity will be par ticularly acute where a Fund’s operations require","page_number":69,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"c7aaf59f-ae1b-4d88-aa50-57d271cd5715","block_type":"box","text":"II-31","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d43a8e78-4197-40c7-91e1-6d541a4a801d","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":69,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8bd9f10a-9315-415c-a722-f610be64a189","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":"4db2fde9-bb26-4671-95d3-08eb677bc842","block_type":"box","text":"shor t-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":"7a6f245d-ede8-4aba-8443-b77ed3ff842b","block_type":"box","text":"Index Funds.","page_number":70,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"65cabf2c-58fd-4f9b-b8b7-5d827d77552c","block_type":"box","text":"Cash Flows; Expenses.","page_number":70,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"f9d3b267-7f45-499b-aee5-e1778975bcc9","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":"a420fb51-f8c1-44ae-af2b-50e4c2e6ab4a","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":"ec588765-d51a-4a60-bd11-f4e8dd1d96b8","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s por tfolio to accommodate cash flow","page_number":70,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"0e1fe8da-4ad2-42d8-aec2-c7f59dfa587d","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":"efba78c6-b6ff-478b-a5b5-6738e0b26785","block_type":"box","text":"the investment per formance 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":"ca7d7c29-f1ea-4c15-a950-9ba6e9bd5233","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":"b5376629-7211-4fd7-a6e8-84ffff68db2a","block_type":"box","text":"(","page_number":70,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"3413a92d-3657-4db2-9777-0b64743626f5","block_type":"box","text":"e.g.","page_number":70,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"bd393459-caf4-4d9d-a327-f0b86b7aa20e","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":"fbdfc94f-9fb4-44f4-b7e7-5c8c13508bb3","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":"de419973-1209-47ac-a53d-679e6c612c69","block_type":"box","text":"par ticular security as an investment.","page_number":70,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"3d483645-f8be-45d1-a0cf-2a972545e787","block_type":"box","text":"Tracking Error Risk","page_number":70,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"59df6853-5565-48a5-a78a-3d5acdf7cf40","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":70,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"e2232213-a27a-4bac-9fda-607176407bd5","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":"ff09c7f6-d1eb-4765-8d04-4f56246e34ad","block_type":"box","text":"instruments held in the Fund’s por tfolio and those included in the Underlying Index, pricing differences (including, as","page_number":70,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"7ee3b90d-5ef1-41cd-8d8c-5293a8b4f2a2","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":"226ddf42-46f3-4ea1-8a87-257bae980e30","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":"df0ac32a-048c-4484-a0ae-f5fe2173a4c5","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":"f87e2e40-ddee-44e7-9630-1bebbb31dc1d","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":70,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"b7a8506d-813c-4d88-8366-d865887ad7b0","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":"f438bf26-bd44-47bd-b7a5-5974417b771d","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":"fb1762c3-53bd-487c-8f65-26beeac74778","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":"fe3e4715-8961-44d0-bc63-34886796caa8","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":"5d1dee88-ea3b-4abc-a785-f90ad8a5d6ef","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":"87b60fcc-38fc-4560-8ed8-b907a6ca6e99","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":"036fccc6-bb59-4c13-9dfa-53745fbdfd50","block_type":"box","text":"price growth that does not appear to be suppor ted by publicly available information on the business and assets of","page_number":70,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"aacc26cd-26a9-4096-935c-68372d50f578","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":70,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"2a12c398-c7ce-4ef6-9252-8c6f25c49d09","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":"6a8904b9-df7c-4490-96eb-22867491f09f","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, aler t the index provider as to the alleged issue. The","page_number":70,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"c580af1c-3841-4f8e-af31-514669cdeb6f","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":"e5999037-6846-4d5a-a5a0-ee45f0161d28","block_type":"box","text":"the rebalancing of its index. 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Bloomberg has no obligation to take the needs of any par ticular Fund or its par ticipants or any","page_number":72,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"02b05f99-2f9a-4502-93b7-6b6760900bf0","block_type":"box","text":"other product or person into consideration in determining, composing or calculating a Bloomberg Index.","page_number":72,"box":{"x":69,"y":75,"width":735,"height":11}},{"id":"0745b6ac-bade-49a0-9648-982d9b32f66c","block_type":"box","text":"ICE BofA Indexes.","page_number":72,"box":{"x":102,"y":98,"width":124,"height":9}},{"id":"902384e4-5daf-4363-92ea-95ac2ba68a4b","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Intercontinental","page_number":72,"box":{"x":233,"y":98,"width":670,"height":11}},{"id":"b8977bf9-3da9-4d99-a408-9146653ef558","block_type":"box","text":"Exchange, Inc. and its affiliates (collectively, “ICE”) or Bank of America or its affiliates (collectively, “BofA”). BofA is","page_number":72,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"bcadd4e6-b526-4c6e-8cc4-bb67089d9194","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":"f34e6ab9-6c4c-4c97-a19d-8a854994555c","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":"b38ace01-22c7-45fe-8f05-b0afb73f2e99","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":"aaf5a968-4ba9-4fff-89d7-daafae8b9fea","block_type":"box","text":"completeness, or otherwise.","page_number":72,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"2357b61d-f91b-48b6-b9e8-2bdcc49e06e1","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":"6eded5df-8811-4c48-ac66-e7b29a9df9c0","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any par ticular Fund or its par ticipants or any other product or","page_number":72,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"899abce1-3203-433e-a1d5-e3d9e85c5b11","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":"6c31d5ff-d72b-4a97-8cef-4d566946bb67","block_type":"box","text":"Indexed and Inverse Securities.","page_number":72,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"a9bc6ed1-fcdb-44d7-b70d-f41d332f21e9","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":"d5b957d6-e41d-4085-a55b-f05ce6dcb2ad","block_type":"box","text":"par ticular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":72,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"75b75e9b-92eb-4ac9-9e42-6bbb9c31e603","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of cer tain securities also may be based on the","page_number":72,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"3fabbbc8-d44a-4a59-909b-0dc6f1a89bf6","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":"8f7700cc-6ed1-488a-90f5-9c35aaad45d1","block_type":"box","text":"be subject to risk with respect to the value of the par ticular index: that is, if the value of the index falls, the value of","page_number":72,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"ea22d245-e82e-4b4f-bd62-9eafe466ac1f","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on cer tain securities may also be","page_number":72,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"e248a590-2c4a-419a-9d25-6adda34bae68","block_type":"box","text":"based on relative changes among par ticular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":72,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"eb8ba434-bbc7-42c9-aee6-f5ccfc4923ee","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":"f398f051-2810-41a8-b30b-21768477336e","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a shor t-term tax-exempt interest rate index). A","page_number":72,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"ec365bc6-8e81-4433-ae4c-71f0b64782e7","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":"f48d9562-e5dc-4353-96d8-cd6efeae1fad","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":"19da44b1-793c-413a-8ee2-73922dfb2d8c","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":"8708cb78-658f-4664-be2c-b85e2c736be8","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":"1fe6506e-19bb-4e78-8e12-f983732df52a","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":"ac1dd4a0-06d9-4533-b5e9-a04558496de3","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":"f0c8cdd7-6ce1-4911-82e3-ad998eeea74f","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shor ter-term","page_number":72,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"ea2cc1e5-4ccb-4a13-b252-9780b27dd570","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Cer tain investments in such","page_number":72,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"45866251-d2d3-4075-8f5e-200faf839aaf","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":"e38d0d2f-250c-4c24-8884-4fd2f05fe1d9","block_type":"box","text":"por tfolio 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":"68347479-5230-42bf-8a26-38e912d68783","block_type":"box","text":"por tfolio 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":"72194b0d-4025-4bc1-bfbd-593a9cfa2b2f","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":"c235f831-1ff4-42bc-950b-04f63f544c82","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":72,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"2cb18512-0faf-417f-96b1-6102a5b9b236","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":"fb805922-de6c-451d-a80a-9d4afd267f83","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":"0a1b3f55-abaf-40a5-bf34-d2e0782a8fe1","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":"1de8f96b-e9ca-45b3-8aa0-ffab5279292f","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":"c42de203-836c-40b3-9d7a-8e112bb50dee","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when shor t-term interest rates increase and increase","page_number":72,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"d6d8e95f-8f85-45d3-9d8d-0e93b42f28f0","block_type":"box","text":"when shor t-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":"a4c0f0ad-ed59-4fce-8a94-a3ea2b446466","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":"b79204cc-6b72-413e-ab64-843fb1a16e97","block_type":"box","text":"Inflation Risk.","page_number":72,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"77378e77-e79f-4d5a-b9e0-d6e8a7e3f17f","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":"cfa09d17-716a-4aca-b9f5-866b1d2d2854","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":"b0250e53-8d38-4105-a05b-792a8888caf0","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":"8ac76743-55fb-429d-a25f-1975c68b5318","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":"e57d098a-3a69-409d-a429-13a5b2f15a17","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":"730ad6e5-024e-4ec5-a492-e898ec210283","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":72,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"2c6df3f4-59ac-4970-a0d5-22eee91eb3f6","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":"b8057fcb-b821-43aa-b2ec-ba9aa5738428","block_type":"box","text":"the secondary market are affected by the per formance of the stock market overall. If IPOs are brought to the market,","page_number":72,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"6ee497a0-9a5d-46a8-beca-ceeb2a2e8279","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":"54229944-3312-4c71-b6a5-52f0035ffe55","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":"d6855dc7-bdcd-4d1a-8359-3fb9ca2c99bd","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":"56021a6b-e85f-4a40-be84-26272bdca88e","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a shor t","page_number":72,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"827899ef-c136-42b4-bf81-6c11139848b8","block_type":"box","text":"period of time given possible price volatility. This may result in increased por tfolio turnover and expenses, such as","page_number":72,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"eac90b4e-6db1-47a3-9efe-18f8e1f6683e","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":"f429eca1-b189-47de-a78e-a8033e71640c","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":"5cbc2d31-511f-43ce-8669-cddb7179d124","block_type":"box","text":"II-34","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"90076b03-50ea-489a-ab13-91567ec9901e","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e2d4be65-452e-425e-a039-3afe85025080","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future per formance. The investment per formance of a","page_number":73,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"8e13cafc-5714-488e-9ecd-a1e2b078c0e3","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":"64af1185-1520-48bf-a7f9-5d4732e5474e","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its per formance will generally","page_number":73,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"ce2649f1-ab06-4697-922d-f0b0905793d2","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":"0a3ba424-d1b9-4272-8f5a-490320ddd9fd","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":"feae80b3-2be5-4192-b22b-e385d6e09fd4","block_type":"box","text":"be available for very limited periods.","page_number":73,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"e4daa51a-6e67-4ecc-90ae-8e14c6604685","block_type":"box","text":"Investment in Emerging Markets.","page_number":73,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"f0971992-be59-4c6a-b00d-ce279b16639e","block_type":"box","text":"General.","page_number":73,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"94014eca-a7f9-4e61-904c-e9532db98faa","block_type":"box","text":"Cer tain 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":"c57ff49e-892f-4e20-94f3-11330b49a334","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":"b5cf0fa4-5935-4e58-9a57-71745d1ae283","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":"4db7a3c8-3740-4ce2-8ab3-54bd60affb59","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":"68e8ed70-ca10-4639-a971-86ec44aac96a","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":"e2ba4e5a-d808-4667-9fb7-14243db44b81","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":"7d1c9adb-a8c6-42f7-a68f-cb799c8eba83","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":"ba2dbfcb-f977-4b3c-82ff-307857ab7f38","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":73,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"8e7d1c34-774d-436a-bd3b-4dc60dfd3a7b","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":"01a50f06-5e12-4297-b7b5-2a1359522fbb","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":"ea6e5d2a-0300-4685-9b68-511b4efcf6cf","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":73,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"46637e88-b0bd-44d9-b8e5-0919fc86cccc","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":"9323a1dd-b151-4388-a1bd-e22d4604a25c","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":"a735b2df-0ed5-4138-94d8-6d0ae04de133","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":"2396f3a1-78d3-4fe2-a95e-7dea1917860b","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":"98edbad3-e0d4-4e2e-9588-bb3fda3b6726","block_type":"box","text":"policies that may limit a Fund’s investment oppor tunities such as restrictions on investment in issuers or industries","page_number":73,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"b2508ae8-65aa-4535-bdca-e7299d523a95","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":"29dd247e-d7d9-411a-842e-341c8bed6d5c","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":73,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"9555913e-4a22-4e34-b7f0-b552411de1d0","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":"012b7dec-898a-430d-9f89-038a151d0993","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":"160947f3-75cd-4e8e-a7e7-857935ff86a6","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":"6c1c9024-8033-42fe-bbf0-dd9edd28ce1e","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":"6291bec8-4dde-4e4b-9c82-72fa196ff1d4","block_type":"box","text":"markets will continue to present viable investment oppor tunities for a Fund. In the past, governments of such nations","page_number":73,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"f2906e35-2f2c-4dd8-8370-d48a2bacf108","block_type":"box","text":"have expropriated substantial amounts of private proper ty, and most claims of the proper ty owners have never been","page_number":73,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"7f111be3-7a14-4596-addc-c894ee4b3e45","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":"448e24f3-f863-410a-a28c-f250d4b4bc78","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":"25fa579f-182f-4f18-a7df-07dbafd001f5","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":"83a9376b-2e22-4155-87c0-079b70ee8a0c","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":"675d3c4d-bbbd-4b70-b689-23b27bd1e211","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":73,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"9a1d8c57-0917-439c-9fbe-32ff0e0d5dcf","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":"bf4e99df-1134-43de-8fc4-eab0953552f1","block_type":"box","text":"volatile than investments in more established markets.","page_number":73,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"dd4f0540-c1cb-433e-ad23-13f742a90603","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":"c1cc9d0d-537c-4456-bf44-e800119ef93c","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":"d4ed0708-17eb-4088-977f-b3d46e647f95","block_type":"box","text":"financial repor ting standards and requirements comparable to those to which U.S. companies are subject. In cer tain","page_number":73,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"2c54f4ac-1934-448a-8171-dfc3c8eb38f6","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":73,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"e63c5303-e0d9-4da0-9188-241f25ca060c","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":"bfbed0eb-f636-4685-bc61-ff025a7376e4","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":"f580fe71-1e4f-4d8d-b9ea-cc303d0d14d7","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":"83ce9af9-e907-47a0-a3ac-d694e17a0104","block_type":"box","text":"acquisition or disposal of securities.","page_number":73,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"f851ddcb-c179-457b-aab7-039f137afabc","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":"204fbad6-c35c-409c-acd1-92512deb46df","block_type":"box","text":"in developed markets, in par t because a Fund will need to use brokers and counterpar ties that are less well","page_number":73,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"decf1982-2fa3-4ce1-84b3-576c13291eb1","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":"810d83a1-2b36-4464-8991-12b454c1cf91","block_type":"box","text":"negligence, undue influence being exer ted 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":"132d16f7-87a5-4ebe-b79a-8252570638ff","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":"3214a786-f1ae-4834-acae-32526a170f9c","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":"d898e511-653e-4e24-a369-57d25bb2ab4e","block_type":"box","text":"II-35","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1246a554-4d9b-45cd-8e51-fb89469ea36a","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5548b55f-fe45-4359-866d-7874c5ff320a","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":"d2cd052e-826f-4dde-a1f5-d5deb9f71319","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":"3d75156c-afe6-48f6-aad1-3ce7ce4e2a3f","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":"2e373f2e-45b6-4e31-87a7-d40789f118cb","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":74,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"99c3d949-1b3e-4905-8a4e-92926e9fe217","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":"a9f6c81e-163c-4c10-b27b-107502746b0d","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":74,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"9df3ea24-50b4-4974-bf61-b23f06ba533f","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":"4d420d48-5291-4c26-b6ce-de62d859d450","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":74,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"c1310f36-b342-4f6c-9dab-d5c0bce692a8","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":"c21c04f1-d065-4444-8f3c-6d6727b49c6e","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to cer tain","page_number":74,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"f24803d5-b7d5-4e0c-970f-86eba81d3480","block_type":"box","text":"additional or specific risks. Cer tain 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":"efe89b9c-c484-423b-888e-16b4684f6f4c","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":"4bf63c21-d0ef-4b0c-811f-a15aaebdcd75","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":"6bcb00c7-8243-46bd-aec4-b7c6bea699cf","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":"85b50d9a-e45c-4bef-b3f1-4c66e17df852","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":"b03663dd-4b9f-4fa6-8f42-35f3651a36dc","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":"5be2d4d0-c5d6-43f2-bf78-8e7f73c70c89","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":"d5538382-2a51-420a-8903-5d7f128a8e8b","block_type":"box","text":"in potentially fewer investment oppor tunities 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":"963fb1d3-1ef4-4d65-9b5e-c98f855e91aa","block_type":"box","text":"per formance of the Fund.","page_number":74,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"deb99282-c0ac-4bec-be67-8b0fbec071ed","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":"0cf7c5f6-4f15-43c8-9e16-3a0c0f58e625","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":"a5544270-9a66-4a66-8763-3b1a2bc1f750","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":"5f762dd5-ab94-4159-b050-cbdc43231cf2","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":"964b187e-44f8-4b9e-b8ad-710b4d8e5847","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":"8bc6d14b-28a7-4e40-923b-7e74c9a08b4c","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":"ec508e99-5d75-484c-9744-4016b90e3cf1","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":"26e2e55c-b5a5-425f-b3f1-5e23476648bd","block_type":"box","text":"common to most such countries is that the economy is heavily expor t oriented and, accordingly, is dependent upon","page_number":74,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"89ed64e4-5db2-4499-89e3-084291ad2cf2","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":"ffc2c10e-b6b8-4b27-a087-fac620266482","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":74,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"0b9f4554-3af8-4980-bbdc-f7b75b201361","block_type":"box","text":"expor ts of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":74,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"9bdeb4fc-4825-43bb-9273-d2e68f0ea905","block_type":"box","text":"affected by a variety of factors.","page_number":74,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"9537f1d5-4d38-4929-9f33-d4e08c08b5d6","block_type":"box","text":"The legal systems in cer tain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":74,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"948f56d2-6a93-4d6f-9f39-47a8c5be7ab1","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":"010eb1d0-3bcf-4d7f-9ea1-071216598a32","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":"c12d2b8f-1606-4b15-9250-67d706c6d215","block_type":"box","text":"clear in cer tain 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":"26f86305-97fe-4cb5-8655-d4c95b3f29f6","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":"3c6801f1-d285-4938-941d-d0b007655244","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":"1df28102-b59e-4d8d-9217-d6a89dd88816","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":"086b1b2a-2ca4-4eb4-aee9-caa77f93cd76","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":74,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"fa9c0dd1-7690-4b6d-9289-fa00321a4cb6","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":"f9ba9212-be2f-4bf2-b08c-94ff13a371a9","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":"aac8a50f-ca1e-4b42-bec0-f7d82a0652f1","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s por tfolio. In addition, economic","page_number":74,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"6c025932-3d2e-4de4-b1ae-512a97b22fb6","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":"2600d3ac-6654-486e-9d6a-b8609d5eebe8","block_type":"box","text":"nations.","page_number":74,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"a41d3707-4c00-4add-ba98-ffb1716b745c","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":"7283fd46-dabd-4f0a-8242-979c0f8dd18a","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":74,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"21ad810f-7077-4940-b638-3b864a161c5e","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":"7f5a3c58-707e-4b98-9519-8fc10aa99591","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":"0d886d68-bd4f-43d9-bb49-3119bf98f498","block_type":"box","text":"cer tain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":74,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"97e4cb11-84d2-4ec4-9e24-97ce197bbb9d","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":74,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"b4ba3f45-3f10-4416-9b8c-b34fcd71430f","block_type":"box","text":"market Asia-Pacific companies.","page_number":74,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"9d916d1b-f674-4f39-9bfc-dea8053382ca","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":"458917c5-c88b-4a37-814f-74d1b353c70f","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":74,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"92e5f009-b8a4-4cbd-a516-d2d002cc0e88","block_type":"box","text":"services for such securities outside such countries.","page_number":74,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"2dcbc007-a20a-4fe7-9ef0-33be5d0c7469","block_type":"box","text":"II-36","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8ff4802e-e616-4959-9090-f3977e55a38e","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b98c406c-7894-441e-913a-305bedf34289","block_type":"box","text":"Cer tain 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":"09ddadbf-683d-487d-b297-4d7a8b74aaf7","block_type":"box","text":"to commercial banks and foreign governments.","page_number":75,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"2298fada-23b5-4798-ac10-4e8b10b10427","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":"99b37ddf-5b93-4936-95f8-b7ffaf7e774b","block_type":"box","text":"on a Fund’s investment por tfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":75,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"b7594c3f-04bd-44d8-9ff1-c40beab1ce18","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":"92d4e7a6-9e4d-4dde-aed8-62f3b433e9c5","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":"1aafe950-43e6-4541-9c0e-7f75487a18cd","block_type":"box","text":"practicable or appropriate to invest in a par ticular developing Asia-Pacific country. A Fund may invest in countries in","page_number":75,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"085cf7c6-6b39-4757-b39c-9cbe319d599c","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":"bbca8baf-af95-48c5-b2f9-925c3e78d387","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":"5c971a62-435f-4368-b309-de5df2fa5e0c","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":75,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"d3fb9bfc-665b-4259-a705-8a80c0190c65","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":75,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"6bd7ff78-be6c-411a-aa4e-b6ab102bb963","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":75,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"dfdeb407-343c-450d-9b13-569943a090b1","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a par ticular company or limit the investment","page_number":75,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"7bce8c4e-48a7-4dc0-af01-c6d05279e589","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":"067b15fc-e67e-447c-bdc8-ea41a5038a7f","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":"957acb4e-52de-4bd2-8c7c-8b53652f3263","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":"cb9afeb8-41ab-489d-915b-db3338c07480","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":"6380d26e-7a13-483c-8623-50032d166510","block_type":"box","text":"have an adverse effect on the value of such shares. Cer tain countries may restrict investment oppor tunities in","page_number":75,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"75b2ab40-d068-4123-896d-3fe1fda3e613","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":75,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"5cd6f56b-f979-4427-afa7-8752d3447443","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":75,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"e185d54f-378d-41c9-8855-af40028583cf","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":"8804df12-474b-477b-bed8-7dc2213bdd12","block_type":"box","text":"a Fund may be required in cer tain of such countries to invest initially through a local broker or other entity and then","page_number":75,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"fb1f2d73-580d-4dbb-b430-04ce0aa4c319","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":"f223335f-7ab2-4da6-8f8f-14572600c2d0","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied cer tain of its rights as an investor,","page_number":75,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"1827d512-5328-4d12-9b4e-7569ae66fe87","block_type":"box","text":"including rights as to dividends or to be made aware of cer tain corporate actions. There also may be instances where","page_number":75,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"048074b6-6593-48da-9718-a5e1ae15e298","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":"9c3ed2b9-5096-4d7d-b677-7d54b5b145ad","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":"255f94cd-eb61-466d-9251-1c7972717797","block_type":"box","text":"investment at that time.","page_number":75,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"a84e4f69-cfdd-496c-b7e4-4bc894f628f1","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":75,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"0776c0ca-5ae3-490f-b216-e90cd0c236de","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":"1e921587-d789-407e-983f-669ea6a655a9","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":"d85c0d2d-6458-4bdb-9b7f-427047083880","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that cer tain countries may impose currency","page_number":75,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"28080578-9641-40e2-8403-a23d8ec4b584","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":"5be537cc-ed4a-46dd-b7a3-0a4247511acb","block_type":"box","text":"that such restrictions have the effect of making cer tain investments illiquid, securities may not be available for sale","page_number":75,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"c4695612-aadc-4e29-b534-509172fa10b7","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s por tfolio subject to","page_number":75,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"25384f89-b3c5-4c1e-833e-542ba8028ed2","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the por tion of the Fund’s assets","page_number":75,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"09e1bb5b-a7c5-4b08-a27e-8690dd21b420","block_type":"box","text":"that may be used to meet redemptions may be fur ther decreased. Even where there is no outright restriction on","page_number":75,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"2fa5399f-0d46-4ec1-a598-c6bf6a288377","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect cer tain aspects of the operations of a Fund (for","page_number":75,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"3add602a-ef1f-4a2c-b1a3-096069667617","block_type":"box","text":"example, if funds may be withdrawn only in cer tain currencies and/or only at an exchange rate established by the","page_number":75,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"53dbe6fb-3b87-46c6-97fc-87c28b1f4c2d","block_type":"box","text":"government).","page_number":75,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"c040e293-e0ea-448e-ab12-1029fc1d2bd1","block_type":"box","text":"In cer tain 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":"76d773c3-0d70-47c9-b7c6-a9f5faa73349","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":"0a9573ec-254f-4577-aa89-0b9e3ac8975d","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":"d111d59f-638b-4a5d-8d03-73a9615aa03b","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in cer tain","page_number":75,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"7a0a40a6-c8e4-4365-aa18-8f94312997e1","block_type":"box","text":"foreign banks and other financial institutions.","page_number":75,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"241a61d0-c2ad-4933-a7dd-52564957d4f0","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":"8518ffcc-ed44-44de-b4c9-6854e8b95ae6","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":"9cec6a9f-541a-4e5f-89bc-7d823cc5830d","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private proper ty rights and","page_number":75,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"2babc811-45d7-40d1-8f15-94de403aecb4","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":"d0c1d0c7-a151-4603-83ee-8bfcc3d9a6ac","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":"aef0442b-833d-43ae-9355-1d134f15fce9","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":"01f5295b-28ba-4d38-8fb9-ad3c56e36401","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":"82718d9b-d93e-45e3-9385-0d98cd4050a2","block_type":"box","text":"cer tain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":75,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"72fa8d61-a99c-4eef-b955-2fbbd3232dc0","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":"57a967f1-6d43-4baa-b01f-abd647bd321c","block_type":"box","text":"II-37","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d0dc9eab-3485-4745-9039-9ddf3581e69a","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":75,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"656f3205-bccd-4840-9028-90fd799bdad8","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":76,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"71affbef-614d-4673-b2f3-89982a1feaf6","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":"b6018d74-fc35-4ab6-8ff4-aa631ea64e61","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":"e91a945b-0a0d-4403-af60-3cdfba64bf00","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":"625755ab-7e36-4dfd-8fd1-9568312a1757","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":"537e8c91-2f70-4382-b936-f772dad1db16","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":"7ae7bcf4-99ca-41e4-b8a3-bb1e9093c0ec","block_type":"box","text":"foreign securities.","page_number":76,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"f9c56b4c-63d7-41ea-aa64-1422043448a6","block_type":"box","text":"Risks of Investments in Russia.","page_number":76,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"219063c4-bf76-4dfb-8cb5-6f85f1596700","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":76,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"4a2367a0-9bc4-41f4-a480-c426b2eb0476","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":"3fa99ebc-3376-4de5-813e-b2d16476c621","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":"4e40eb3e-4d85-40b5-a122-c4ffcd77f27e","block_type":"box","text":"and a substantial por tion 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":"62d1c89f-712a-4c90-baf3-d298fc02d26a","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":"0791ee90-d3b1-4d51-a720-4a1605b24d4a","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":76,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"57d43f80-8cf3-4617-9932-73ddbffa2ed9","block_type":"box","text":"developed markets.","page_number":76,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"125f983b-7ae7-4f66-88eb-e8512cee2c3e","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":"baa4c52a-48e9-4600-bae3-2e1eb99ce6ae","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":"e54e9690-7421-4443-9397-da0644aafdbf","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":"3e56f5c9-39db-47b5-a555-396c76e8d9db","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":"33bd3395-bc82-4ca1-8fa1-62907447707d","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":"7c888c23-a520-4a3a-a9c3-f618dd85db8b","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":"7ad6eaef-abf9-4719-83a7-d2ae823d9c0b","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":"ba4203e1-3cad-4f28-8e5a-6064cb0eaee3","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":"96d868f6-f412-4527-bcb4-92a9bf161fd1","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":"215679ba-3814-4b85-a0fc-dfd06bbbc89a","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":"dfbf2a09-04f8-4585-abcf-934b3bda40ba","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":"04af480f-67b8-4c99-8a1e-8e75fdb927ec","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":"ec9d44fe-d37c-4954-9601-4d26f9090501","block_type":"box","text":"relating to title or corporate actions relating to its por tfolio securities, it may be difficult for the Fund to enforce its","page_number":76,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"67141131-fb47-4325-8c03-4e4dfa36e44c","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":"1b2c62f6-653c-4a91-b24d-ac6e59fd39ce","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":"052447cd-2df2-40dd-826c-9497cd9cae3d","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":"e7250b91-b96b-4427-b055-b71ae765b95d","block_type":"box","text":"In addition, Russia continues to asser t its influence in the region through economic and military measures, as it","page_number":76,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"ee1aa02e-90e9-4276-be96-65a18971eed4","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":"4239ba8e-3007-4d5a-973f-2d0b57a4e1fd","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":"f10a2b4c-c4a7-4d18-8adf-3cd67f2d84d3","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":"ef3b615d-82c6-47f8-91db-fe11e0fbb407","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":"3544487a-4e32-4699-9a10-330a2f2f2ca1","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":"159a960a-c545-4cb5-9a23-46ed5a33db57","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":"079701b4-bbcd-4a93-89dc-cb5fe1ae269d","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":"fcaf956e-89a3-44e9-9c19-a6d2424b6766","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":"40eec6c2-2f8f-4f5f-aeea-4e57d9820eb8","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":"7c0726d2-afa3-4cd5-8752-3f0beae509f3","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":"a5d8990d-b836-4008-9d66-c8b048fd68ff","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":76,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"d3631d1a-b758-4fb9-a647-516a9b4ebacb","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":"75e0eb23-8bd6-452b-8b8b-28269fa3f77b","block_type":"box","text":"sectors globally.","page_number":76,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"a8be6eba-a78d-4374-9ba6-39eb177815dc","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":"c2eaab46-4af4-4a2f-b3e8-e272006484d6","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":76,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"73f756bb-7349-4b91-8236-6f82e0b5469a","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":76,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"37553ec7-35b5-431c-98ee-e67ed407ef9c","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":"064bfb44-2c67-4c53-b9a5-41cfebc7918e","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":"483566d8-0174-4ab8-bed5-dfc6afac1274","block_type":"box","text":"payments. These sanctions, or even the threat of fur ther sanctions, may result in the decline of the value and","page_number":76,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"1069c891-3cca-4be0-9135-bbc81396e8b0","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":"f9b6c0a1-4b5a-4fca-a970-758430ef32b1","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":"fa7c64a0-e2c3-4d5e-9f49-c8d7ce1fb792","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":"aff2d57d-93cd-4a4e-ab26-0e59723a21b3","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":"9f0db119-3e9d-43af-9e86-c7c27b001351","block_type":"box","text":"fur ther impair the value and liquidity of Russian securities.","page_number":76,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"ee95ad2b-19ad-4ca9-a9a6-7d5f6d61cff7","block_type":"box","text":"II-38","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ef76c6bf-bfb8-4fc7-be74-a3306c6eec55","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"059d8d08-afca-4634-9d9c-c3d0c335f835","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":77,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"eec67bcb-90f8-4690-840f-aa6b66bdc939","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":"7c776519-09de-4791-8a5d-c1ede99d925a","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":"1fa622cf-aedc-4cec-a10c-8f4dbcd0fd7f","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":"1c306397-3b62-470f-8261-660c46ee17db","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":"898e15a2-6f66-4b3f-8312-1fd395e697a1","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":"e7b6fef4-292e-4fca-baca-1bd7063d911b","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":"d48d3c6f-6898-4ba9-bd31-f433fd5d5ec3","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":"bb69d862-e5ae-461c-b713-8582d5768df5","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":"4b457eaf-e8f0-4976-94e3-568249fcd466","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":"7da3df22-27ae-4a6a-ad2f-6a9fb69845d6","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":"04e153d3-e997-470a-af86-64cee3531f70","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":"6ebee7f9-eef8-4fa6-ab3e-b683a2af17c1","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":"390a2f43-6b3d-4d04-804c-10590e2d9d7d","block_type":"box","text":"of assets and proper ty 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":"674ea7fd-feb8-4320-bff3-af48c9d07552","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":"407bc916-848c-4f15-b0b0-c0d2b45fe4d1","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":"3ae84239-41ac-47fa-abba-d20cf383d0c6","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":"2e4aea92-74d3-47a3-af01-bd6e6d522122","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":77,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"aac996a0-7321-4ed4-93d3-32520753b625","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":"3661db5a-1ed7-4eb1-8333-0c00820666b9","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":"d7b3f2b0-f638-4b19-b373-2fef27946f69","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":"0758ad00-5e7a-4b9c-8df6-ba9874f26fad","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Fur ther,","page_number":77,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"dcdd14fc-9f21-4a5a-a6e8-b7e3f2b79fcc","block_type":"box","text":"under income tax laws imposed by the Depar tment of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":77,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"88b9ec29-93c4-48ad-8c9e-23d786712cc5","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":"676a82fc-4fa4-43b4-bed8-c097f87c3311","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":"ec75397e-ddf8-456d-aade-4a924c974a14","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":"abd3dc4e-183c-4936-a00f-db9fc340054a","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":"c172d747-33a8-4dd1-b7ee-278112ce752b","block_type":"box","text":"impacted.","page_number":77,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"36d8336f-3ebb-4f58-a3e4-2001d7e52d9a","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":"a4677271-24dc-4a2d-9787-5caad30be7f6","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":"8e68c37a-9aed-483e-8e16-282e14f2bfd3","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":"cbe28f9a-5851-4576-b14c-0f6bf46a26f3","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":"b20919ac-f696-4267-8056-afd64bb09087","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":77,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"1fafded2-2667-4d37-b4ac-6271b0471dd6","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":"6658d4e6-efd3-4a12-8180-4641463575e4","block_type":"box","text":"including terrorism, may cause uncer tainty in their markets and may adversely affect its economy and a Fund’s","page_number":77,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"b7a0dae5-1e48-47b5-b7f1-991fdd77e693","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":"4b4c13b7-2a44-428d-93a4-d1c376bd31bf","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":"9c9ee98b-2294-4d76-9e10-c07d6ca4eee8","block_type":"box","text":"por tfolio. 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":"f4613935-621d-4c61-8c8b-aa0f6cbc78a4","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":"0a85fedc-1a4c-431b-8faa-954d947b24df","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":"1565098f-777e-45af-a73a-a9577ad78c99","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":"bd78eb10-f11f-4b93-8ed2-c008dbb7e7e7","block_type":"box","text":"economy.","page_number":77,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"6760c5c5-a45f-4cfc-b3a4-855e7c28ad10","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":"a3a66679-fc03-4c89-a73f-9d80557eff91","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":"1cc924ef-452b-433a-90a8-7b9612fdcab4","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":77,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"e232448d-29c0-45eb-bc78-008280a36872","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":77,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"1b1c7591-f039-4ed4-a7ec-a4dc6e0b25b8","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":"8010e0ad-d158-49eb-ab33-afc8ccd27621","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":"cd427c28-9bc1-4b31-bc38-08cd6a14c53c","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":"1ca21ead-2ebf-4fd7-a8a4-b683fe52cb06","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":"52ccf477-e921-4e7a-9c0d-1e647cf97fa8","block_type":"box","text":"typically the case for investment managers.","page_number":77,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"111adab0-b0ff-4d1d-8bb7-d21e95269f2e","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":"de93bb6b-d04e-4bb2-8e68-5fbcd1b7c0a5","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":"2f62bffa-d795-49ba-ab41-559025006460","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":"c0eee35d-bac4-4a82-85b0-03d1f0dca3f9","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":"edea420d-5fb8-4a00-9878-943b07669417","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":77,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"6bedafcc-df2e-4024-97a6-6ab6516d0fcd","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":77,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"d74719ba-5dc0-49c4-8153-55bb0581423e","block_type":"box","text":"II-39","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"99a01121-8f89-4985-85fb-9ca09d13eaf8","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0ed66674-3904-4c9d-8df0-b7e0d25faca7","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":"1a9b7768-4c2f-402d-87bc-045ccec4bdff","block_type":"box","text":"significant, and in some cases the most significant, trading par tner of, or foreign investor in, Saudi Arabia. As a","page_number":78,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"77b5f543-9006-48c0-ad97-1d7bf0044323","block_type":"box","text":"result, economic conditions of Saudi Arabia may be par ticularly affected by changes in the U.S. economy. A decrease","page_number":78,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"89e70286-cc8d-4c99-b10e-b4c9676b055d","block_type":"box","text":"in U.S. impor ts or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":78,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"1ac223e2-d292-4fb3-a163-02d7b4d34872","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":"6f8e47a1-ee78-4be9-9932-1295016fe350","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in Nor th Africa and the larger Middle","page_number":78,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"f0a4caad-697f-42b9-85b3-fa188a094200","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":"69e20b48-6798-473e-846a-86dec7619698","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":78,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"ad5e9214-2e3f-4c30-a8c9-0a7550e41480","block_type":"box","text":"Cer tain 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":"d3144d87-4180-4118-9e7e-10d6b458d1e4","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":"1974acc3-ed14-4414-89ec-41669e01b847","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":"1259e027-077f-46f6-bdcd-336e7f5a3565","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":"a0e48676-00cb-4c0f-8e4c-83213561cdc9","block_type":"box","text":"will be indirectly subject to those risks.","page_number":78,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"5db12320-7ed1-421e-882f-0a28b5544218","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":78,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"2a7f36bb-ec91-42db-9ebf-a3dab39abbe2","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":"e234f286-fdbd-4c81-bede-1a5d42b5ac27","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":"bfba3c4e-cb91-45c7-990e-50d51de5545a","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":"4bf4f2af-e1bb-4564-b15c-4145bcce9d39","block_type":"box","text":"on expor t of natural resources to key trading par tners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":78,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"23b90641-93ba-498e-9b2d-7454b2de4856","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":78,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"d33cbb78-cbc2-46d7-9812-ad9316602d62","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":"0576a496-c818-42ec-a6a9-2f00c95ffbe3","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":"ae040433-1884-40d6-bc76-d6bd7d86de15","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":"a4610a85-f6f0-4186-95f1-a2ddc8929f2d","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":78,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"6dca0899-0b21-444e-8add-8969566e41d9","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":"aae5f04c-0a4c-4d65-8a65-073a0f932e74","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":78,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"74f47bfc-156b-4d3f-a787-6a7ec0467205","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":"74fc94dd-4bdb-4ae5-b31c-038438bb8a6c","block_type":"box","text":"against Venezuela in an effor t to effect regime change. Military action, sanctions, or even the threat of fur ther","page_number":78,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"af691e4b-56cc-4214-aab9-867c6b4c5db9","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":"e05dff00-2375-4645-a64b-10e8d8bad15f","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":"3fe17a6c-8b20-495e-af4b-c6e2b582295a","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":"54cb9520-9be2-49d5-b01c-c494df569986","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":"48b4ab69-b1c8-4a56-8b9e-570017f84895","block_type":"box","text":"impact on a Fund’s investments.","page_number":78,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"1a1c7f4d-0a20-4107-b5a9-aa3338e614a6","block_type":"box","text":"Brady Bonds.","page_number":78,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"a9bb7e10-88af-425e-b3b2-7dfb3aaa1d51","block_type":"box","text":"Cer tain 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":"25dc40a7-a52e-4eae-ac64-38eef5859641","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":"b206e034-bfb2-4ab2-9784-6e60871c69cd","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":"9711c648-d591-4f1c-8080-eb0e96ff677b","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":"99a085cb-79a1-479e-84ee-38722cb12510","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":"dacae1ee-bb2a-422c-99b2-333ce0318cc6","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":"31f5c729-0e64-48ea-ab09-a9e4998d5912","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":"2f28ecf7-6c4d-46e1-a8ff-876d01bba583","block_type":"box","text":"2000s, cer tain 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":"eb8713c9-85ae-43b0-ab0e-8c944136465d","block_type":"box","text":"Venezuela.","page_number":78,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"ed17bf43-e57b-4332-97c8-dd63d769e6bc","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":"7d0d4590-0690-4b31-9c5a-282eea17ad68","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":"22fb3979-26c7-417b-b762-db5612fbfb67","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":"1d005dc5-8ff8-4bc4-a37e-e23a5482c96b","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":"e4a5579a-0302-4bf3-ab9a-96471b8b4c43","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":"08829eaf-cd2c-41fb-bf83-52ce5c67087c","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":"01020555-b4a0-4003-b907-88e6dbda32aa","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":"fc2230f8-9b2f-46ec-b058-022538654fd7","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":"1802042b-4647-464e-8761-f177adaa028c","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":78,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"d681902a-ce38-4a84-8387-1a8ac77d3591","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":"350c6e13-5c63-4cd7-b94e-bf768df72c19","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":"2d39b46c-9d6f-4bd6-a317-d491c6e4a842","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":"8d025fa0-9371-4115-a3d2-ff1cd3059c2e","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":78,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"24b8bd19-f1fa-40c3-863a-2f537443594f","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":"248c2573-bb6a-4efc-8787-ef207f075fd4","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":"9ca376d8-e805-4e88-a64b-04912bf707c1","block_type":"box","text":"II-40","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"affd4f2d-6a6b-4719-a52a-52b39a99f671","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ba62a41d-4ade-4f24-af48-34c3c40f9383","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":"7ffff406-6ff3-4c26-9931-c9dcaf5a48ad","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":"20793c0d-c0e5-4e78-98b9-3e9f0e223e55","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":"e64d08a0-61b6-4e63-9dfc-97ec109b64a2","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":"5ec485ed-0fb1-4157-bc2a-eac04ac5aa98","block_type":"box","text":"China Investments Risk.","page_number":79,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"a22dc6f6-2c4d-4a31-b4ae-518c671c83fa","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":"39a1ef52-5c04-40ba-923c-3c58ef051ca8","block_type":"box","text":"including cer tain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":79,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"816e5260-3c79-409c-a670-dc0b90a564df","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":"0b2f0950-4ff2-4a1a-9132-75dedb735666","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":"87f9d74e-59d5-4cda-bb6f-ce2986623422","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":"45b87f4d-8d0c-4cc5-9869-83656b8fa956","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":"f47764c9-5e0e-411e-8ded-e46582f6068c","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":"af9bbeae-52f4-4945-a3f4-bf9016ed8aab","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":"c8731561-25db-4019-aa1d-cd40406c5106","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":"f070f181-12d0-485d-ac7d-4db76c19a1aa","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":"9d629bb0-6aa4-4e57-9492-f062cd2cc613","block_type":"box","text":"even fur ther. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":79,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"723690fa-59cc-4a07-8bb8-b2e20181f603","block_type":"box","text":"Kong may cause uncer tainty 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":"4def4f4e-1213-4d37-88df-3db2a2873c2c","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":"1a3dd8d6-1196-4882-a82d-9710b70ae1cd","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":"4a2aa26d-9bfe-45e2-8c6a-da7a349ab58b","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in cer tain","page_number":79,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"44461e4a-38a7-4094-abb1-1db2fdbc9859","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":"6d26f908-58c3-43ec-92da-3fc1aa6f009e","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":"b8905173-123b-4042-bb2d-7c4ff6ccfb58","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":"5de8698f-3a2c-45c4-9b6e-2f9ba0dee734","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":"1faabdb2-2669-4f96-b618-47819dbdef68","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":"ca6b6533-ab3e-4e5f-83bd-1f6ba7a40f5a","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":79,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"17ee930b-c71f-40db-9aa6-b4e5e48fb20f","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":"701e69e0-6d9a-40e3-8d2e-24bbf8d9e403","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":"ba69560b-95a9-4e8e-8089-73710d7b7b3b","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":"d78e40a9-dc69-42de-b50b-b810eb96f975","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":79,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"2810bdc9-0c07-4093-8cde-62d67b454ea7","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":79,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"316ae686-b1e1-4f42-8b84-bc880441f22c","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":"4e07ed4a-92c7-439c-8f35-b7f34c137ac6","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":"113cb24b-03a6-4c56-8ec6-c772fda94ddd","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":"133ae654-c0c2-4424-ab30-5da433e4cfa8","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":"872c3025-402f-4a12-b20a-fdfde365f493","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":"b197096c-0ee1-4841-af82-7c4f6e1ec553","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":"c5218151-0f3a-4798-ab52-58941dd1cfcf","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":79,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"c25065d3-2df2-49df-bfe4-df59a4f883f0","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":"6ea4a1c6-601a-4523-8b97-fd11849a03a4","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":"a716c251-269f-49ff-8692-f62e29ad86bb","block_type":"box","text":"restrictions, a ban on “naked” shor t selling or the suspension of shor t selling for cer tain stocks. This may affect","page_number":79,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"ca23fb37-95a0-429c-94f5-23d1c413ec2c","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":"37a02c4c-e636-40f9-8cb1-67b436cbdbf7","block_type":"box","text":"Funds. Fur thermore, 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":"4bed3218-5ccd-4f61-b074-9acea142604b","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":79,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"64de3b50-ff01-43f6-a95d-603d86bf7464","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":"8733a5ce-d612-44b8-a728-281e111a3d5e","block_type":"box","text":"brokers and other par ticipants 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":"e932b615-b26c-47ad-8066-cc9761d9bf9d","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":"7e2726a1-a9e2-4882-9274-c43459cf6125","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":"14c3d595-595f-421c-be48-1d20078df547","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":"0f93e379-7cda-4198-8aa1-aafa90e61e04","block_type":"box","text":"information. Securities markets in China are in the process of change and fur ther development. This may lead to","page_number":79,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"15b2e062-38bc-4cc0-84ea-b8354566d62a","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":"9585a871-add7-4255-8348-da375df8b719","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":"db183d6b-fd8d-4a04-9d42-b61cea1577e0","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":79,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"b48d3c82-2e74-4443-ba4f-0907ad83260f","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":"54908878-9177-47e0-b54d-f509b2f8b22b","block_type":"box","text":"sub-custodian.","page_number":79,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"f06992a1-80a4-49bf-b54a-05f9b8da8563","block_type":"box","text":"II-41","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"be2163de-b0d6-485a-8066-c3ffe8c376f1","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"71686934-1ad7-4d38-80bf-026e6da30379","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":"0180b15b-7d61-4e15-98c0-74c742e76230","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":"1067851b-ae00-4021-bb49-e23c64d4f874","block_type":"box","text":"on investor protection considerations.","page_number":80,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"a4720212-bf50-4e49-b1ff-b800c645c3cc","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":"62a3591a-1482-41c3-b890-e3b538c81a8b","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":"eed8d3a8-b764-4ca6-93be-2b57d483640b","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":"b6419648-d002-4724-ae6d-ff4093c914ae","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":"5eb385be-5528-46ec-96f5-a7bc0a7dec09","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":"9d123b6c-b719-4188-9973-e1097f13261c","block_type":"box","text":"headquar tered 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":"c8337cbf-933a-4df3-b9f3-ce8cffc6d04d","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":"5bfe7d35-e366-40c6-a252-2ae8fac0879a","block_type":"box","text":"per formed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":80,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"f8db9e12-86b5-4e75-ad7a-6e98c4ff70df","block_type":"box","text":"per formed 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":"0c41055c-0a35-4176-bf22-8fa48f0bb6d5","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":"baeaae55-4d40-4112-9500-ffa12a9f8553","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":"bd6bef4b-c66d-471a-8e01-6a55ef2549cf","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":"3d81fd4b-d3ac-4f6f-9360-723e2ce9ea95","block_type":"box","text":"accounting firm.","page_number":80,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"20a8284c-c77f-499a-9f2e-9ab12b2648a8","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":80,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"b855b3d2-c8c5-4b90-8a29-39187d8645d4","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":"11eccf7e-caab-48c5-8b3d-1ab66de1ff40","block_type":"box","text":"negatively impact per formance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":80,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"938ee504-c958-4d03-9eea-1adc0505f516","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":"fce0afa6-0e73-4990-9496-efe8541ed07d","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":"efeb21b9-8d29-4448-89a4-674c7946a882","block_type":"box","text":"which have a substantial por tion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":80,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"df48f671-e976-449e-8c41-3cc0e9b714f9","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":"9f02c980-d6e8-493f-896d-3bbe2117554f","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":"eaea1539-d164-4d46-84e6-c0892a1279cb","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":"a77c0078-fa83-4a34-b03d-d87e507c9ad8","block_type":"box","text":"RMB (“CNH”).","page_number":80,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"55973b76-0a72-4c8c-bf7e-c0cd8a55dabf","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":"f5510eb6-dae8-44d4-9a1e-324571dcc0f3","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":"4416ae69-ca30-4c23-bee1-ec9af31c47a1","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":"eab9f9b3-c59e-4338-947b-2d2e1726f95c","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":"55ffe948-c070-425c-83f6-3eab9433a41b","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":"6d0da08e-9f27-47e7-b3bc-266edb0902d5","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":"ed632289-7425-4a39-84e6-9903aac9bb1e","block_type":"box","text":"represent equity ownership in the operating company.","page_number":80,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"4333e28e-0e4c-4f65-9b1b-d5260c6b7ecc","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":"e39c6855-dc64-432e-987e-ea67eb73c393","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":"ad808b47-f2b6-432b-9f7c-2652cbb171b2","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":"269094a4-9e62-40b1-aeeb-e65d9e10e452","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":"8db3dd7c-9e56-45c5-8909-700e1e3d0797","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":"b9fb8416-2e34-4fcb-8531-a83f70efc658","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":"1a836d31-55b7-47ad-903f-00f7269d2046","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":"a41cb2a1-b275-4e66-92a7-f6770538ce78","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":"b84445ad-b8e4-43b6-992c-f9dfb40bc62c","block_type":"box","text":"company and the value of the U.S.-listed stock. Fur ther, the VIE contractual arrangement would likely be subject to","page_number":80,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"44a8ccc6-d00b-4d71-858a-88345c86ac90","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncer tain and could be","page_number":80,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"e1c80930-75f0-4679-8f42-2c149baeab6c","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":"2b52b200-b180-4923-9451-d2e555c2a7d4","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":"1752b778-2968-498c-a015-57de679cef09","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":"6f08d265-df7c-432c-a31a-e95893d88356","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":"fee25a92-572f-4cfb-b316-42f118e1b9bd","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":"9bbdee5e-7a12-4efe-8acb-84929283450c","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":"0842d373-34ab-40ac-b9b8-7699eb3abc83","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":"1365318e-9c87-4eb8-9079-beea79a25674","block_type":"box","text":"losses to a Fund.","page_number":80,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"4c14dd50-3a4d-40fd-ae94-d9cfae8e8d67","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":"2b011700-388d-4093-9eab-1f8a0d08ef2a","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":"fcd8e1cd-237d-4b0e-8056-8f70213e44a2","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading par tners over its expor ting of its","page_number":80,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"9652b125-18c5-4daa-9835-97642216c909","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":"4284eb93-c695-41a1-b04f-26313f41d695","block_type":"box","text":"II-42","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bdf7b6e6-b32b-4b82-a8e2-1aa2b80b39d6","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6c9c6ea6-3ae2-48e9-808c-12c5ecfb1276","block_type":"box","text":"expor t 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":"a608284a-49aa-4be2-bd0c-56039df5d7e8","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":"f705d4c5-df52-43e1-a5c1-0a3c6a39b81c","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":"89e711f5-9be3-41e8-bbce-1518d795f644","block_type":"box","text":"economies of China’s key trading par tners may have an adverse impact on the Chinese economy and the companies","page_number":81,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"64da8f05-3cbc-4200-8a68-a0110c11b239","block_type":"box","text":"in which a Fund invests. Cer tain Chinese companies (which may change from time to time) are directly or indirectly","page_number":81,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"14f2eec1-d7fd-42fd-b4f3-e84d1ffa5a11","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":"4af0f383-6f4a-4b18-b86c-faea203dc3ac","block_type":"box","text":"rights or other concerns of such government. For example, cer tain foreign technology companies are subject to U.S.","page_number":81,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"6d1a2b02-8372-444a-9ee0-26292e7f8813","block_type":"box","text":"expor t controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans impor ts of","page_number":81,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"9dd0318e-ebf8-4a63-bd0e-8a3f36f2762b","block_type":"box","text":"goods produced in cer tain regions of China or by cer tain Chinese companies due to concerns about forced labor.","page_number":81,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"7ee29a04-bd78-4c58-a3d0-8c45a8f59441","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":"efac89f8-b08d-4bc4-a1bd-763dd89b8a73","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":81,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"f980b460-df3a-4aec-be25-9e446a74c744","block_type":"box","text":"or cause market disruptions. Cer tain 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":"db79d9f3-4cf8-469a-a0bf-c261c5c0a410","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":"4cb6ae98-3933-4ee8-ad1b-4982149ba5b1","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":"2db4f3fb-31f2-4a61-bbf5-5a3b83cbd4a3","block_type":"box","text":"such companies.","page_number":81,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"fe401605-13f8-40e5-ae17-8e435eeceef5","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":"8214ead1-c30e-4142-a065-c7213895613a","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":"7d203f28-bfaa-4d20-9004-b4eca9a77616","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":"fa569689-21d5-492c-8a99-6f452a99e475","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":"72b5de45-e1bb-4a63-a27e-9b04049254c2","block_type":"box","text":"on a Fund and its investors, par ticularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":81,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"62f734a9-3a25-402d-8747-7f13a7b38691","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":81,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"9eec9469-f1ee-4632-ac69-9572ac72bd8c","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":"a40a16eb-f093-46d9-ba5a-7acb60635804","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":"491b17a3-dec2-4f54-a450-0764c75b36be","block_type":"box","text":"standards.","page_number":81,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"62b0be12-c909-4f93-a70f-97498ff964e2","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":"58a2c894-03ad-421c-ba23-530f2cebcba1","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":"3a12d6cb-5027-4ba4-a202-da80fd68be47","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":"6bebb4c5-4667-4328-b670-958c01bb2d3a","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":"166f5baa-796b-4cca-b7ab-02cacb31d22d","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":"13c351bb-e929-41fa-a5e8-75826f397914","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":81,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"a1e7d97c-2939-43c0-ac0f-598f7c3a0137","block_type":"box","text":"General","page_number":81,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"39f65623-0dfb-4235-93ca-5a9e2a425637","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":"92646652-2fae-4060-b704-4739d36d56ea","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":"9297ef4f-9e66-46a9-aff5-c0d61d7d16ea","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":"5a1c95d7-9a5d-4e66-8b9a-ccdf7ccda712","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":"0860a4d2-c967-4c80-a849-9d3dcfba294c","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":"85dabf7c-d770-4ec0-a52b-d55125ed0a35","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":"875ccdd2-ada8-4e8d-a85a-3f5482d3cdef","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":"cc2f56bc-855c-4cad-8470-eaff27ab00df","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":"daca02cc-7900-4bb2-943d-b41ada937069","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":"ab398565-895e-4c70-bfb8-c58e28cfaf68","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":"59b8d92e-3e7a-42e5-a260-018780a82daa","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":"b367dcce-fd9c-4492-a0fc-bebeba91033e","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":"07d879d5-52ec-4aa0-82c1-ff13ecf6a01e","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":"fb8dc73a-f6dd-4150-87c7-8cf585a2b655","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":"7af31bfb-6266-4533-953f-0d85ef48e709","block_type":"box","text":"company established by SEHK.","page_number":81,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"452d0866-81c5-4d4e-8e41-c4ccf3e8c1da","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":"2d57398a-fec8-45ea-8ea6-56b4be47d15c","block_type":"box","text":"through a Stock Connect’s Nor thbound Trading Link is subject to daily investment quota limitations which require that","page_number":81,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"2fd69d5d-7a0a-4dea-9aa0-a4b86cc05ef4","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":"41e82a85-ecd9-4559-9d6e-99a30f281e9f","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":"66e256b9-55df-495a-b15f-eb6e6e5e8ad6","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":"e3bb3237-d884-4a24-91f1-b4b40480b8fd","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":"c48bc28e-24ac-41da-a27a-fd12d583edd5","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":"b29c6e8c-e488-43c9-9e6d-756dc4c642e6","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":"dbd9e702-fef2-4408-b6db-353f1396f1bf","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":"cb494bcf-d6ef-424d-b0dc-e1f54aab73fa","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a cer tain trading day, there must be sufficient Stock Connect","page_number":81,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"b071cc86-c3ce-4cc0-a0fe-8a3283af031e","block_type":"box","text":"II-43","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dd416f26-4824-4637-a99c-1f3e4e39201a","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4c18e6ae-ba85-4dec-8971-4f6bd9376367","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":"12d44e9f-6176-4719-85ee-4c53b0a9a9fe","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":"3514d7b2-302c-46fc-8c92-fc2565322d83","block_type":"box","text":"out pre-trade checking on sell orders of cer tain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":82,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"0a5fbeb1-e592-45ea-909a-aae23d366cf4","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (","page_number":82,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"45599791-c74f-4388-8751-29b4746af6cd","block_type":"box","text":"i.e.","page_number":82,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"3fa4eaab-4245-4ee6-93d8-d341571819c8","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":"f5b17793-b983-4c9d-81c3-049c101b461d","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":"0eb12bc4-f770-4c67-8176-33653fc9d5c2","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":"a07897c2-cf7e-4cfd-8b0b-718c6aaef114","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":"f892da8a-e7ce-4107-b313-f60006c80a04","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":"45a7d346-39b7-4ad7-b129-642af8d28db5","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":"4de4e247-e6bb-4e98-8a1b-f89ba30ae592","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":"8b143cec-0a9e-4735-96ae-fc03799c17e8","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":"d2b0dc8f-bd84-40fb-bb5c-d66a853157a6","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Fur ther, since all trades of Stock Connect Securities","page_number":82,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"944f5c64-6931-4a3b-a70f-9c6520d011a0","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":"d33c575a-3c9f-4f1c-bed5-45c447fc7eed","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":"ac1a51c3-263e-4fc9-8cce-6e619dab053b","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":"b6c69537-6c9f-480d-8442-12b077ff08b4","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund conver ts the local currency into RMB for","page_number":82,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"d14943bb-775d-4bf4-a174-77f8f95f1e0a","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":"8e5092ae-ab0a-4ee3-af4e-497393850fb6","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":"5032024b-e8a9-4357-b7ac-e3a990956e98","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":"d09e9643-6736-403b-a6fa-3a5d406cff72","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":"8d78a271-bdab-4f5e-bc5c-5244df398623","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":"19389f9b-c9b6-4ba5-8d3a-6ac5488dabe5","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC cour ts. The exact nature and methods of","page_number":82,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"d5604cf6-6441-48d2-8f04-44b7d02a8c97","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncer tain. In the unlikely event that","page_number":82,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"79f48c7c-a583-401a-9ba5-10f8fe019c94","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":"e82d7b30-85be-41c2-adb7-135cb10451a5","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as par t of the general assets of","page_number":82,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"1ba54960-f771-462a-8c1f-79901de0a39f","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":"d356c25b-b3e7-4903-b573-d5895e05fd6c","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":"8d376140-5fca-44a4-b8c0-7224bf0ac8e5","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":"08862547-feb6-489a-a298-4f0f6afbc791","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":"31b1eda1-9398-4c51-9ba9-6c87718f1d76","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":82,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"128e4bd5-5365-424a-8a18-0fb053456884","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":82,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"08e81203-9c8b-44c1-a046-493e64caeddc","block_type":"box","text":"order to par ticipate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":82,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"7ee32a08-5ba3-4c27-9b31-11ce7d078bba","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":82,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"c83eb81b-a843-4a9c-b0b1-a1429dfb34fa","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":"d6b6610c-cc64-41ef-8304-06f2b1e1efe1","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":"397f666a-7448-4f60-94d1-e91bf0e009c5","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":"d7c81dcc-e60e-45ed-a2ec-489c27d09d5c","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":"ffbf3383-1120-451b-b28c-9271d190ea07","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":"d7ba825d-40f3-4e27-ae83-f72e9be215b6","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":"ccf915cb-29d2-439b-95e8-16baacfc0a29","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Nor thbound","page_number":82,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"5544a463-0ab6-4b71-8382-24fd0776dfb7","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Nor thbound trading through securities","page_number":82,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"4d4ead99-78fe-4a54-b95a-f679948bb358","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":"c18f26da-c0ae-4306-8801-acc99528ba40","block_type":"box","text":"PRC.","page_number":82,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"b6a3e36f-cb78-4e58-9cd7-07cc6d4f1633","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":82,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"4514eec9-81cb-459b-bad3-287b9f695516","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":"05068f5f-88c8-48e6-a70a-d66f5e9bbfc5","block_type":"box","text":"house. Fur ther, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":82,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"fac230ab-2b88-457f-bd30-6ee8b1330777","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the par t of SEHK and exchange","page_number":82,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"8f95062a-f048-471e-8779-2386236b5eb5","block_type":"box","text":"par ticipants. There is no assurance that the systems of SEHK and market par ticipants will function properly or will","page_number":82,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"ef9ef12e-ae1d-4365-82ec-2bb6b49679e2","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":"67dd561d-7945-4c90-a478-dbd892127d75","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":"2f0e2e16-dcf7-40cc-a290-b3f714902ce1","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":"ee089c09-f7fa-4ea3-9aec-cbcd7c27e73d","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":"131cb062-4570-406f-a840-30dc155729e9","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":"de807d08-0ca6-4021-8741-4ef9e0768d45","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":"eba3a755-c9b3-4c2c-9e5c-ad2330fc601a","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":"3f817b38-f73d-4838-83b2-887d0c1adf5c","block_type":"box","text":"as a result of such changes. Fur thermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":82,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"7dcfeb3b-6534-4f33-9014-d8646d9bb8d3","block_type":"box","text":"II-44","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0b3b79e6-f86b-4d76-86dc-ae93d22bf370","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eeef05e4-b881-4f3c-8632-91ef4c039dea","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":"293409b6-0e2e-47d9-86be-614f635409cb","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":"61a248e5-8bdb-4e1a-b9d4-788ab88da9b1","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":"583b44b3-5677-4897-b758-1ca5e7fb0c47","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":"d564d36b-503d-4a9e-b957-f48afc6c4b68","block_type":"box","text":"other restrictions. Fur ther, 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":"17d83219-b524-46ed-a2d0-eacaf2ab2fb0","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":"9fc45350-861e-4d84-8a2e-7a22fadcdecb","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":"a7374f88-9ca0-415b-8a1d-90478654efad","block_type":"box","text":"Suspension Risk.","page_number":83,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"90d38afc-3686-452c-91b7-d89e37f03c3f","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":"41859a90-98ef-492a-85b0-2acc776b322a","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":"2e8e066b-8dc7-4252-9fea-f51cb4fb5c3c","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":"7a7d62d5-eefe-4688-8882-7cb22e6cbab9","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":"7a5ae1a3-b94f-44b7-ab76-c89b4b32217a","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":"e1690a4e-f62e-4f81-bd29-f26c348fc744","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":"1d256757-c985-4d60-a143-50e8b0069df4","block_type":"box","text":"Nor thbound 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":"98031317-4b47-401c-b439-a0e5a570cf2d","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":83,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"208a7d4a-2446-4baf-b899-ba4a31de6015","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":"573f400a-33c9-4d6b-9f7f-3ed8170fd523","block_type":"box","text":"cer tain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":83,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"9880cc99-735d-4530-90b3-7d50f721b5da","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":"42d7b757-6b50-4684-941a-647b730b9ee9","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":"2f17a075-dba2-4bbe-8dbd-cd5958711961","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":"c6a779e0-c9c4-4789-a84e-edabaa4c703f","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":83,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"bcd5ed6a-6bba-48eb-870d-3214510edec7","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":"f329b19b-d180-472e-834b-dcbb273c1e9c","block_type":"box","text":"A Fund may invest directly in the","page_number":83,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"77208f3e-d7e9-409a-a5a6-1b03b3bc7dd2","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":83,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"2a0d49b3-00bc-4d36-a7d7-d7aeb98931d6","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":"59df950e-7f7c-4a17-84a1-7636c79bb4a7","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":"1a76e83f-1925-4f7b-91d8-5ed51aac438f","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":"53990ab3-06ae-4c9a-9d54-ce7aa3b05340","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":"62072980-18b5-458a-bc29-97086a8b65dd","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":"1c7311e3-921c-48ba-ba84-dceb87e9b18a","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":"82650f5d-3b18-4534-b215-b56417332f06","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":"55bc4d7c-ab09-4288-b091-a3c09df3dba2","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":"12d590b4-50ef-41e1-a848-d308b576673d","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":"c6993b0c-05cd-49ce-964c-f610bd2cb146","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":"4e0d9e34-bbb2-4575-86c1-9d01625edebd","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":"ff082f79-084f-458a-92ae-045043ea6b6b","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":"4616ddfe-4470-47b2-aed5-7e3e6e66deab","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":"be1817c3-7335-47cf-b6b9-e00d5bf319c0","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":"32809944-701c-4d55-ba8b-2fd93f974833","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":"74a48d18-bb14-447d-b131-0ff9022eeaa9","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":"25be892e-7276-4709-b664-9be303665cef","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":"919d73be-a7ed-46b9-a512-ccc365e298d8","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":"1d97d05e-b5a7-44f6-b958-128e56bbe838","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":"bb1381f4-9eaa-45bb-b366-c8ad57cd9b90","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":"69827ac1-9bea-4651-bfce-6daa8a7146e9","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":"895eb330-0414-4a42-baa7-6c4bf60ec614","block_type":"box","text":"i.e.","page_number":83,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"f31b0523-9617-4176-92cc-32d272a591d0","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":83,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"e5563f35-4c04-4736-947e-5b69884e82a3","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":"1de626f4-59a7-4c38-9654-6f2a2644de46","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":"1c86b464-f6b4-4796-ad1c-2c969c556723","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing par ticipants","page_number":83,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"cecedeee-c371-4f88-bcef-0e403f9ad804","block_type":"box","text":"will be limited to assisting clearing par ticipants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":83,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"34cd493c-d342-443b-baec-9cdf3732c71a","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":"9e2f7d9c-b781-4d50-971a-4871fb4d48c2","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third par ties,","page_number":83,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"a33e7011-abc7-4705-9461-9cc784ee2f5b","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the par t of such third","page_number":83,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"1f5c211f-924c-4f4b-81f4-da9ec3806952","block_type":"box","text":"par ties.","page_number":83,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"2e78d64b-f6f8-418c-96db-bc34977234fd","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":"6d9d2d89-c969-4234-a201-095d6d68651b","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":"43cf53f7-a87e-40e7-8ee1-1392f5a87ccd","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":"2b728a32-eb65-4f9a-9ed9-f4aafc634e9e","block_type":"box","text":"II-45","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b280f5d5-320b-4504-8818-8aa050d7910e","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1086c900-2bd0-4315-94a8-de8dac493834","block_type":"box","text":"involving a nominee account structure in the PRC cour ts. The exact nature and methods of enforcement of the rights","page_number":84,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"01a0c6be-2a03-4c1a-9a7b-efb2de4f1bed","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":84,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"3a46e2de-2dbb-4a63-853a-8923363f02a3","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of cer tain bonds in the China Interbank","page_number":84,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"2eaa5e41-ae42-4fc3-8d39-624b62a2bc77","block_type":"box","text":"Bond Market may result in prices of cer tain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":84,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"9da1753f-d494-4e5e-8b01-f597b62522ea","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":"e6d4804d-0a2b-470f-b86b-693339570d1b","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":"c9409b51-c76b-4a43-bbac-338b61e32887","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":"ca893fff-2c7c-4550-a740-40b7199a0a61","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":"76568fab-f164-4007-8fa1-c1ec9e75044e","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":"43e9c6c0-3544-4bd0-8e59-c5abe410cff7","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":"75dd3ee9-1953-458b-82fd-de598134a561","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":84,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"b854e148-c0f9-45de-b5a3-df4682d45fb8","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":"4237a383-d7d4-4ee6-9e87-64badc91c671","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":"b4d2235c-2b6c-4456-8787-524dcd987616","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":"d69a132c-4dd6-4a38-94a8-53fbe45fd94f","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":"83bc597a-188e-4f4b-a733-e5d87febb99c","block_type":"box","text":"Fund may suffer substantial losses as a result. Fur ther, if Bond Connect is not operating, a Fund may not be able to","page_number":84,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"6da8a8f3-9b46-4ec4-b0db-fedde5faedc9","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":"d8ec29e9-b360-4897-9895-be4dcd248940","block_type":"box","text":"per formance.","page_number":84,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"ef71d19b-acb7-4a1c-809c-d06b51be5c0d","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":84,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"57d19733-f955-4285-a869-d21e56565c8a","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":"91298fba-e1ac-436a-8b59-b78860811c6f","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":"c6bc5bc0-e6cd-4ec1-ad99-1499f502394d","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":"17a7cb18-4de1-406b-800e-7d3427d5c594","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":"9b611b43-b091-48f4-89a0-461a2fa3dd05","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":"a807aa38-0069-4def-8e91-bc8f704bed77","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":"2ea47f61-3524-41f1-a6e3-d4b075e93d54","block_type":"box","text":"conver tible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":84,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"f17c5b9f-8137-4cb2-9610-c4650cb2dad0","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":"b3e65415-429e-4bbb-bac8-eafb98093f2b","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":84,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"1940479d-001b-41b1-a669-0343f85bb9c0","block_type":"box","text":".","page_number":84,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"691caa80-ad4c-4da0-9d06-56d9807132d1","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":"6cb33e19-5f28-4049-8fd2-29e55ed49e62","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":"c79db6e0-aff4-498d-95ca-6af88b640d8d","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":"89543bb5-914a-44e7-ae5f-4556bb531f3a","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":"bace808c-e159-4b81-9c10-d01b228187be","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":84,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"bbdc8bfb-9582-426e-af0e-ad566217e8b3","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":"b9356635-3236-4a25-99a9-c77b442ab5b7","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":"e8e4edcf-5510-4ed5-9401-1e4fae9d92c4","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":"5cede20b-6f1c-4be2-86a7-361f71a2c8a4","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":"3b21dbbc-592f-4aac-9b97-3cf665afa49d","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":"3695ce45-2470-4375-9085-5a15d011521c","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":"c46ba49c-43bc-4776-976a-86e5aff6b6ec","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":"ed326cfc-61f7-45cc-acf1-ae884f7f38af","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":"dca5f886-4f24-4bfe-8aa4-e524dc468dde","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":"d058d9bb-ec61-4b70-85e8-9fb1e8e9d379","block_type":"box","text":"without notice.","page_number":84,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"a1d1c79b-c542-4c60-8e08-60727aecb4bf","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":"6005abe3-29a6-4060-9eb8-65bf87bc9295","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":"1407a15b-1dab-4b7a-9ca7-09e01bc7c70e","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":"ae2600b9-7e72-4509-ae06-5d87b8c9f09c","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":"dbfc63e4-a0e3-4bc0-ad80-177818016d17","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":"2f808a21-5633-4efe-9d43-44596b575f33","block_type":"box","text":"December 31, 2027.","page_number":84,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"6e7cc701-bc3b-467a-a763-897a56bdb1e4","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":84,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"669420c6-e402-4469-b99f-5196ce2b8263","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":84,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"f9032576-bcbd-47ad-b39b-c156b5f4dd4f","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":"28d756a7-c510-4f33-b71e-7cedabf7741b","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":84,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"19a95014-3db7-4bc7-ac8d-1c2b85bbe738","block_type":"box","text":"II-46","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"df3866f6-458e-42fd-9346-03fddc705355","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"736e24a0-33c1-4151-93f9-4819e7c96f99","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":"a0b08564-49a8-4ea5-a6ec-57ff6b78a873","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":"fb93a25d-f07e-4c13-b309-162b3e7d15e7","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":"70a4cc71-a6f1-496e-8e3a-7f301e7a2afa","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":"fa35c36e-d32e-428b-aeec-d91f4808198f","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":"75dda01e-14e4-4486-8249-84126d7f316c","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":"8add4bd9-91da-4f07-9b98-1d8f1ca53981","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":"3bfa3a53-cb17-48bd-8cdb-39bd469588d5","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":"a07130bb-87aa-4c6a-9f6a-b46f13445372","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":"9cd89f7d-2a47-4a9f-a50d-9a6dbbb70144","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":"d005fb6b-4591-4fea-a827-ea3776003505","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":"19a5a806-23d1-4e21-9fc6-e8490176dd25","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":"ad6f79fe-81b0-4110-b161-4078f2596c11","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":"5fd78a47-764a-4095-8dd7-3470495ff2f4","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":"39a1173d-79e4-4383-ad63-d05999a3f979","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":"c5d21c62-4e75-40cc-9d65-56ca95b9a9c6","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":"a120c09f-6c45-4b1f-a6c1-e53758f6a0c9","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":"63100158-c8e7-49dc-b211-0b06d97135c7","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":"6e2cb4f7-1ebc-4c05-bdbf-f16a79314cc4","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":"2ba5e813-91f6-47a6-a446-bf4a4e5656af","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as fur ther clarified by","page_number":85,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"da0e26c1-20ee-49ce-b0c5-ad26e088a91a","block_type":"box","text":"the PRC in notifications.","page_number":85,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"b4bad0a4-f5bc-4cd3-88d3-e48c2578650c","block_type":"box","text":"Investment in Other Investment Companies.","page_number":85,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"d2b49e61-2a09-4e8f-9389-3d4f3c5bc8e6","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":"92d2f064-7925-45ff-b509-c6c40e33b7e9","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":"2c5a259b-2bc8-43a2-bd16-e740de8adc1b","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":"04493afd-1fa3-4d8c-b959-cbdf368a6f16","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":"b4ee899d-9706-4d2e-a6d0-36230c2b058e","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":"bf912924-0e2b-4bb4-b512-c020304faab6","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":"f2f72d3d-27b7-4e32-b292-fa162f6a4d9d","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":"e760d9b9-48c8-483d-907e-98a1f19972f5","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":"d83b58b1-4783-417e-a002-dd87e817a3d8","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":"6e39b190-118b-43c2-b578-a72a96ad36ae","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Por tfolio.) In addition to the restrictions","page_number":85,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"0f57ad43-cc86-451c-b4c8-26a46adcf4f8","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":"90c224b0-257c-4a24-bf26-4edb6513ed08","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":"295efa35-78c6-498d-8f19-c9bf9485f56f","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":"9207f090-c5e7-4d8d-8f5d-efffe50cea51","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":"6b217d01-8583-4b61-a589-0c011bd9d697","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":"6cc3dee2-fdd4-4a26-8c6d-db018b1b8092","block_type":"box","text":"cer tain conditions. In addition, a Fund may be able to rely on cer tain rules under the Investment Company Act to","page_number":85,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"e23849c7-6b12-4acb-ad02-7070d54bff47","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":"21c3f073-5fb0-43cf-ad91-4f93ca8a89cc","block_type":"box","text":"subject to cer tain conditions.","page_number":85,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"dd65e267-7090-4815-8eb8-9ed6901e5922","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":"d888f456-e40b-49a9-bd94-6269f30bd0f1","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":"3bf8e87c-759b-419e-b18f-bf572e5abdaf","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":"5bfcd893-7ac9-4917-8790-dbf7a62bc2f3","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":"08ee8525-0a68-4a8d-99de-a758c7d5004b","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":"77f0c9ba-a411-464b-8ffd-40684bc363ad","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":"dca5604f-7685-45a2-b9f6-d49bbf3efd8a","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":"3b1a3822-3fad-4947-b732-489cd965d74f","block_type":"box","text":"loss.","page_number":85,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"dd97d000-7f20-496d-bb99-36b2800f86a4","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":"7f8c58c4-ba06-4625-a129-cb0f0322a8d7","block_type":"box","text":"shareholders would bear both their propor tionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":85,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"ae4c4e03-4a4a-4882-8c97-50afc9e63a72","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":"2cb8904d-b6f3-4a03-a120-efaca13b0468","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":"09f0b044-0075-4877-81d9-ada6a785d867","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":"251159ef-8ec4-4bb7-be60-5f0dae18fce0","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of cer tain countries will not be","page_number":85,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"fc54ee20-e68f-421a-808c-4353eb3ba0e6","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":"0deb6818-c14c-4fa6-ba23-7ac2012f967d","block_type":"box","text":"II-47","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"210f70ad-6ed0-48f7-a3cd-160a5725e01c","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e1fa213a-2c6d-4c71-862b-6681ea9819a2","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":"49f50a78-d23a-413a-a1fc-f59656080b82","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":"926ab75a-3cf5-427c-9a76-2079f71669c2","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a por tion of its","page_number":86,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"3347e603-049a-47b5-ba0c-f76616158082","block_type":"box","text":"assets.","page_number":86,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"ed912c11-4ffe-4064-a0d1-5ec1986b6c9d","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":"0f011d01-9864-44ef-b518-aad7d636e0ea","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":"069f5aa7-9b3f-492f-85e9-d8d3be2714b6","block_type":"box","text":"e.g.","page_number":86,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"9f6ada54-daa1-4332-a553-cc2c56496017","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":"b826f61e-eb08-4e17-a5e5-b44c7a33b9de","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":"2b88b3c6-4a5d-4efc-a526-e0c47b1dbeec","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":"3981ce9a-3982-4d96-9a99-0dd8b7a9c85d","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":"4c6b45a5-923b-4a18-9429-92c6d7cda7ba","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":86,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"eebe0a90-0fea-44a4-ad87-7a7ae62088d2","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":86,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"0af9d4b9-33b2-4f30-94b4-691760db4565","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":"6c3140ba-6af0-4bb7-be54-7e8a45aeefd8","block_type":"box","text":"investment companies set for th above may limit oppor tunities for a Fund to invest indirectly in cer tain developing","page_number":86,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"a4409322-e20b-4c7d-ba43-6f134f172a58","block_type":"box","text":"countries.","page_number":86,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"50e1c0f6-29d4-4b22-a739-f2f52364d7ca","block_type":"box","text":"Issuer Insolvency Risk.","page_number":86,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"d87c6d36-db6c-47bd-84ad-9d715f4252bd","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":86,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"8f66b7a0-43d9-4d58-b8c7-86dfbd1ddce8","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":"ae4ab0a8-3ed4-494a-bd92-e1f752532853","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":"869d5ce4-451b-48b7-aeca-96642fcd4335","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":"c0031c80-ca8b-41a6-9b59-99b48cc9c542","block_type":"box","text":"issuer uncer tain.","page_number":86,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"4a4ae450-c75b-410b-98d5-667db6ec038a","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":"95348ea5-6002-4057-bb9b-a943f05e672a","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncer tainty as","page_number":86,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"33a2839a-afe2-422a-b98a-30eb28c1a3fc","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":86,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"e1dddd8d-f8d9-413c-939e-b888c05387fb","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncer tainty as to when and","page_number":86,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"d0d9badd-3541-48bf-8182-47274d085c49","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":"ebd621a4-7d95-4df5-9eef-270652fd7a30","block_type":"box","text":"eventually be satisfied.","page_number":86,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"c62dd08a-5e00-409b-926f-641153dd52b6","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":"175f70c2-12b7-4c8d-bd71-8ca6da5877fd","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":"add0a7ad-50ea-43dd-80b9-11376040f2eb","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":"72ae770b-9e3f-40fe-805a-66f75146cc85","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":"11e35b94-ee13-4d66-a8d6-4f43a05d2a19","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":"16741e34-a48f-44e1-9c42-5b360a8aafa1","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":"415f9640-489b-49b7-9654-8f3af5e034d5","block_type":"box","text":"introduce greater uncer tainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":86,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"58bc94a3-eaa0-4293-ac14-e194a2d5d044","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":"e7e66e8e-453b-4f0c-bf40-9e857f49887c","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":"60219803-86a1-4e88-aa64-f5d9c64bb147","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":86,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"1964c0e0-3caf-4b27-bf45-3537980698d4","block_type":"box","text":"and debentures conver tible 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":"9ef97322-cb27-497b-a309-b5a223ffafbf","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":"af0dc32f-bd30-40ab-8777-9731459a8c7d","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":"64802907-f1d7-4bd9-a01d-032136227ad8","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":"61c0b394-22eb-4fa4-b72a-b30fc92ffff4","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":"5e7c3288-251b-45ae-8e37-652df32c8ccd","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":"3589982c-5c38-4659-8b98-6af5ac497884","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":"ff17fb77-7a49-4818-bb6d-98cae0298685","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":"d35f34fb-5b11-4da2-ac19-671c1e590322","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as par t of a","page_number":86,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"265e4c10-889a-40b1-acaf-90e4e58274ee","block_type":"box","text":"workout agreed to by a consor tium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":86,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"49b63dcb-656b-4f15-a4c5-c3d6c1e0a0e7","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":"7d855820-ce14-42ea-abcb-ffde51bf48f3","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":"6f6ade0f-06ac-41b7-807b-a32d03bd6625","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":"c1569e1c-65fc-44ea-9115-8336bd6d9c08","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":"3977bca2-3c15-4458-9cd7-4edaf56d69a1","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":"8206a20e-c4cb-43c3-9a3d-d4c76fc54679","block_type":"box","text":"par ticipates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":86,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"9bb440c7-f832-4540-bcb9-1580242385ba","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":"f43e4342-0cc8-49fc-93d1-4a8d95678450","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active par ticipation in the affairs of the issuer than","page_number":86,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"9010206e-93e8-494d-a979-07b131fe5fba","block_type":"box","text":"that assumed generally by an investor.","page_number":86,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"44eb3f68-f611-4ae8-9faa-92ac82216324","block_type":"box","text":"II-48","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a7e280f0-fb7e-47f5-9564-1a6f36b859a0","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"62713197-8956-454e-8cbb-2973bc317eed","block_type":"box","text":"Lease Obligations.","page_number":87,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"165ae087-71ee-4912-aca8-28a940e57cd7","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":87,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"7300848e-1cd3-4055-a9c4-e5d9b1421264","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":"1c680a7e-2652-4b26-9816-5c5ee0cb7f50","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":87,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"a0554851-ed2f-4d1f-b573-24ddaf14a589","block_type":"box","text":"Life Settlement Investments.","page_number":87,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"38a7b8c6-5c69-4681-a3cc-da48cd0960af","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":87,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"20960e09-a329-44f6-b3d3-efafe36789de","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":"4a821de1-1a23-4a11-a6b5-ecb7fdb5074b","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":"864cdb95-c130-4c67-946f-b98eb9b80e9e","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve cer tain risks,","page_number":87,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"783fc583-3497-4857-91c6-47dc140492aa","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":"52e4f75a-7f36-48d7-9633-267d628b75fe","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":"a8c1398e-a2b2-4528-ad50-95d7bc413c2f","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":"81bc3ec9-b849-4762-80ab-13e085355caa","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":"0260ae6b-5246-44e4-bf89-7c177938abcb","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Fur thermore, a Fund may encounter","page_number":87,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"5318a41e-6560-45b3-b405-caf4c229a598","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":"8135ca1b-a781-4c53-bacf-a04cb2f6c74e","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":"fa0ac282-4c2b-4353-b81d-79f26cf72801","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":"5c735dc7-a13a-4a3d-9813-b7203e4e686e","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":"b7b98216-088b-4aed-8978-d9fb73a7e6c1","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":"edf26bbd-8ac7-4333-8224-e8cf30a8007e","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":"96ba71ee-03e9-42da-865d-6148d2d1762a","block_type":"box","text":"Liquidity Risk Management.","page_number":87,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"635dd2b4-7a7a-43e8-b44c-52f55cd1506f","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":"645dcf16-7745-4e9a-a296-20c7a779adf3","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":"8ff2470a-a9f6-4ac5-90a0-33b111ebcc67","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":"acbfc03a-8ff9-400b-a774-455dbe81b7d4","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":"eb9f4d0e-fdd4-45f2-a527-86d63dc218f0","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":"103dd8bb-b47b-4952-a9c1-52d69e557a7a","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":"df371152-bcec-435d-93e0-15cdc7ee641d","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":"f62ce8c5-de51-4685-808e-f12a7cc1dbba","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":"5cc7f3ff-016d-4dc9-af56-afd616f739de","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":"412fc5ac-0504-4f7b-b792-801de877d6c5","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":87,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"498e9458-1211-493b-88b4-74e7a88089b7","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":"84334fb1-a8a3-41f2-aa29-38ed379a7ea4","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":"d276341b-b13f-42ed-8abc-f7361960974a","block_type":"box","text":"Master Limited Partnerships.","page_number":87,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"0099871f-58f2-46dd-872b-54c683817b9e","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":87,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"aa3e8f83-2ac5-4084-ad22-718221f88048","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":87,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"b47075fa-71a4-41a8-9a32-9ae8d93a5e83","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":87,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"2a077f9e-fc0d-4a0e-821c-e22a9da8ff63","block_type":"box","text":"pipelines transpor ting 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":"8d574ecb-2710-4aed-9424-bbced6f34b5e","block_type":"box","text":"generally have two classes of owners, the general par tner and limited par tners. When investing in an MLP, a Fund","page_number":87,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"1d59b961-a3c8-4818-9278-ee15c8e2e392","block_type":"box","text":"intends to purchase publicly traded common units issued to limited par tners of the MLP. The general par tner is","page_number":87,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"b7c8a514-088c-47e7-8e4d-92ae699693dc","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":"e6102a30-acfc-4294-a56f-f987cbfe60f6","block_type":"box","text":"owned by one or more of such par ties. The general par tner may be structured as a private or publicly traded","page_number":87,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"ad89b0b1-714d-4815-813d-2a25ae1a8004","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":87,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"7571b688-9a3a-4ab5-93af-21faaa7af668","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":"ab8039a6-4299-4e17-a129-84ff2fc13695","block_type":"box","text":"Limited par tners own the remainder of the par tnership, through ownership of common units, and have a limited role","page_number":87,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"d3e8b443-cc27-4878-9915-d6fb575191ee","block_type":"box","text":"in the par tnership’s operations and management.","page_number":87,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"5e345dfe-fb54-41a9-b826-1ca10d91238b","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":87,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"76daa78a-44e3-4bc0-b31d-8f0f3382b69f","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":87,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"f5ace619-d42d-4dd4-89f9-8c08ecb320d1","block_type":"box","text":"Common and general par tner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":87,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"d2bcd5ef-0f39-4260-81cc-b03b801a6099","block_type":"box","text":"Once common and general par tner 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":"d6e3d6e3-19c3-4f0a-aceb-f289752bbda0","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":"98b4e905-e3c2-49d1-975e-104b6432115c","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":"599d3ae3-c461-4c51-ba4f-dafea6296760","block_type":"box","text":"The general par tner is also eligible to receive incentive distributions if the general par tner operates the business in a","page_number":87,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"4a9bf81d-0233-4633-b211-4bf0e89ec3e6","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":87,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"f382fb96-09c6-46df-8511-7b3853e0132d","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":87,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"ac4a4f48-0755-4660-b021-c310ce7bee55","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":87,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"9ee35868-c030-4d81-b32e-3c0aa019f8f7","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":"cfc5c890-d485-4d09-86cf-a334d0e869b8","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":87,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"2f259475-9f26-4ba2-bc27-8989b2b08bf1","block_type":"box","text":"order to increase the par tnership’s cash flow and raise the quar terly cash distribution in order to reach higher tiers.","page_number":87,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"80439949-4928-4354-8b35-afca2a3306c2","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":"bb1a15ec-09ae-4259-8bc0-bb90bddffb80","block_type":"box","text":"II-49","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e5bbfc51-4ae2-42f9-910a-0a501932d7af","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"66da659d-5235-4451-a853-958f79ea5fe2","block_type":"box","text":"MLP common units represent a limited par tnership interest in the MLP. Common units are listed and traded on","page_number":88,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"7535252d-80a1-43f0-99f9-4cf617c1d449","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":"cdf4c0ba-8f98-4d9a-a5e2-254768f1f498","block_type":"box","text":"success of the MLP. Cer tain 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":"a92b4a0f-228e-4a2f-96ab-808266906c23","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":"dc65bc89-956a-4978-ae3c-b26ee4df7c63","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":"5f6a5f49-d979-4b2c-b353-79712634acc6","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":"d7eaf4a5-3e8e-493a-a837-901750989754","block_type":"box","text":"Merger Transaction Risk.","page_number":88,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"258ec451-7bf2-4f1b-8017-93a733e4c20e","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":"1fde19d1-98f7-4613-9bce-6d0bc8e3eb3b","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":"396d3991-8dd5-45c5-b4de-0af24c8c0193","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":"7223a30a-c4af-437a-af88-546be31a49c7","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":"5301e8b6-c059-4ab4-baf5-3fe50c534165","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":"7e8d1515-6ce9-4bce-b162-c1d9a4e01d7c","block_type":"box","text":"the Fund and may lose significant value.","page_number":88,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"b5430d82-d98e-4099-9a87-20a2eeb67fef","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":"9b89e4cb-4be4-4f14-99dc-61a09fcb6c3f","block_type":"box","text":"Cer tain","page_number":88,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"006ec075-7c57-4d75-8984-293d1ddc2909","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":88,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"32931d2f-8276-44cd-bedc-142b4a437e66","block_type":"box","text":"deposits, including instruments issued or suppor ted by the credit of U.S. or foreign banks or savings institutions","page_number":88,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"9c458f8b-f900-432c-9e46-8f1fa807053e","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":"738e24ed-cd15-4e38-811b-c2b8711330e3","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":"afd2beb8-d2a1-47b8-945c-b7c1e80e48a8","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":"154e6d04-7587-45b3-8c76-1ff7105d55c5","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":88,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"9478207a-6549-4f62-a261-7979f1c14652","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":"28b2f503-aeb7-45e0-9608-5795457a21c3","block_type":"box","text":"branches of domestic banks.","page_number":88,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"5fa7a9b8-b287-442e-b699-1bbcaedc14d4","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":"8ea1f0e8-45f4-4727-b305-cda302039794","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":"98814dc3-943b-48a7-9588-a3dab9ba7afd","block_type":"box","text":"Canadian counterpar ts 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":"7e74fbd5-71a2-4ff6-aaeb-f7ff1e8e64c9","block_type":"box","text":"paper of a foreign issuer.","page_number":88,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"41cff540-1d3a-49d3-8be7-e49434eb7eef","block_type":"box","text":"Money Market Securities.","page_number":88,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"a0d3071c-affb-4297-98e3-cc30263e6f53","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":88,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"18b32c73-032d-4c32-a992-f71713d8e8b1","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":"74383bc9-c57f-4610-b3c9-6b771d85aa73","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":88,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"65bf7c56-08ae-4dd5-9d61-f56cca22d3d9","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or suppor ted by the credit of U.S. or foreign banks or savings","page_number":88,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"200e208c-3159-49c9-ba4b-d8497920ccda","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":"e99801bc-582c-4ccb-bd5b-bddb84663391","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":"f14acfbe-06a7-4dd7-94a9-3ba2eeeeaca0","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":"3fb0f53a-2c1e-4bd5-a9b5-55c17e36cb18","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":"c3395aa1-7232-4754-9e97-945299838fa9","block_type":"box","text":"agencies;","page_number":88,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"7910a006-8ed4-45ba-86af-7e60ff1da33a","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":"1510fcd6-eee6-41a7-842a-42dd06ea4dfc","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":"fd8d8b0b-2dab-4bd0-a389-f9bc000a7407","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":88,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"5ab4dbb1-0f5c-4b6d-a249-e3c092ba04c6","block_type":"box","text":"obligations and credit card receivables);","page_number":88,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"4f90504f-95f5-4791-8c72-3704dfbaca9c","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":"24ca4ddd-8897-4a6b-ae06-28e3f1b2d902","block_type":"box","text":"authorities and related custodial receipts;","page_number":88,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"a639017c-8844-479f-8278-f6ff856fec3d","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":"91e44269-1d53-4811-91fd-2df6cc47fce1","block_type":"box","text":"agencies or authorities;","page_number":88,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"c7bf6602-4752-48b9-8ef8-f2cd8fda700b","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":"8a033858-b323-4237-80a9-5f2c5b5b35df","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":"52f55ede-7142-411d-968c-3684a83c8a94","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":"0942c88e-d889-4468-a66f-b3786932c725","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":"d21c27fc-5594-4cae-add9-8b0f74be2243","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":"093786c3-8f8b-4f11-a071-167ab9ec79c5","block_type":"box","text":"States;","page_number":88,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"5769276d-0e23-497e-8c07-70a7bf0ae3de","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":"ec300cac-ca91-4858-97b3-f9e500a29629","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":"a4cf0b2b-8875-4ee8-b554-79632961a745","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":"bf1eb939-55f5-4298-9499-c2c19f34348e","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":"962ba355-726b-4d0e-b6ce-f592578e3cf0","block_type":"box","text":"II-50","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b1b666b5-a483-4335-8413-98edfbf16184","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"266ff90c-2b57-4abb-8cea-beb1effbabfa","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":"8066a813-8bb9-49b3-8e90-da5d0f6bd54f","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":"8ffce6f2-6bdf-4a5e-ad5d-586099d377b1","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":"5d9ece2e-68f6-4780-8074-23d01fad4468","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":"64b59aa9-b9b8-44c2-b516-e88462a04f26","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":"4b758ea2-80ac-476f-b5b5-d7f084ce673b","block_type":"box","text":"States.","page_number":89,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"2485a4b5-d2e1-402d-9328-5677d717260c","block_type":"box","text":"Mortgage-Related Securities.","page_number":89,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"3d1dfb4e-4918-4995-8c49-9f600fbd0ac0","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":89,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"27520131-edf3-4ae4-a1bb-a28302bb5bf2","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":89,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"d03fe6c1-5f99-4c5e-9663-43f666639a91","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":"fd3526e9-459a-428b-8b11-0f1906faab41","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":89,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"07f2bbeb-2dad-4f21-ab64-f35d0179af63","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mor tgage-backed securities differ from other forms","page_number":89,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"3c11b844-0bb0-4a66-8f8b-6b524e0137fb","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":"1b3ee289-bd47-423a-9f6c-8be05d31d680","block_type":"box","text":"maturity or specified call dates.","page_number":89,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"64501d94-df6d-4cfa-a046-75065caf7f97","block_type":"box","text":"Mor tgage-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":"3da70453-0aff-412d-b489-4d4f4fbcf078","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mor tgages relates declines. In","page_number":89,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"09ed8658-dca6-42e3-a964-5a9fe15a42c5","block_type":"box","text":"addition, investments in mor tgage-backed securities involve cer tain specific risks. These risks include the failure of a","page_number":89,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"a3884cd1-0c03-454c-8e8d-29f95268ab40","block_type":"box","text":"par ty 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":"dbeed5b0-1762-4655-bb16-fb50e30ce0f3","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":89,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"852faae3-5ef3-400f-ad8a-a3fc361b1804","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mor tgages are passed through to a Fund.","page_number":89,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"f0db8b8c-9dec-4559-beb5-f9c00146b4b8","block_type":"box","text":"Accordingly, the value of mor tgage-backed securities in which a Fund invests may be par ticularly sensitive to changes","page_number":89,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"29a882d3-79fc-4fa4-bcf2-384d68411208","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":"234017ab-dbd6-4d2a-81a9-acf9bd5ebbd6","block_type":"box","text":"successfully may depend in par t upon the ability of the Manager to forecast interest rates and other economic factors","page_number":89,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"0f14cc60-7697-4a18-a7e5-36af4c0ee80a","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":89,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"82215493-14cd-4096-b608-c01fab722e59","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":89,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"161dc044-5ea9-420e-bb44-31d9956c6e97","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":"bf0d43bd-efb3-4be9-95e0-51a815cfb23c","block_type":"box","text":"for its mor tgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":89,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"86458209-cf6c-410b-b4cc-cacf2a9c7ae7","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":"ee27315a-8f3a-4506-b999-ff9d79cbc077","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":89,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"83488a5b-9ac1-446c-98e4-45bf3ca6e5f7","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":89,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"e8da11ec-f8bf-4266-8ddc-11f34855b8a9","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":"b099f4b3-edee-46a9-9756-40c24d19f291","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":"115b4ea9-d519-44d0-8a77-6a5aa81316a0","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":89,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"7c0e5c5b-346b-432e-aaf7-efbb3da9366c","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":"452bc755-4a14-406e-9774-ed496c9b27ee","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":"b33f6059-f111-48c9-81cb-45ba40ca88f8","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":"cd0ba019-2eab-4875-95f6-52c1810bb994","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mor tgages may occur at a slower than","page_number":89,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"1cf8227b-389d-4365-a040-6f82e4e653f3","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":89,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"f4d7a15c-8171-4313-8c28-b76eaa6e3638","block_type":"box","text":"considered shor t- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":89,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"32860b8d-0a9b-496c-ad7c-d951fbfeac98","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":89,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"8ab8e86c-2bc1-4b4f-8d24-b66186cded8d","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":89,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"30cc7112-4a37-455d-9de4-1b0e8922cbc1","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":89,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"792bdfe2-4c7d-4536-b6d6-94f6a4c0280d","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":"3d5746df-1046-4a6f-9cd3-4c9e8c853072","block_type":"box","text":"There are currently three types of mor tgage pass-through securities: (1) those issued by the U.S. Government or","page_number":89,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"2da524be-de5a-4f5d-a55b-126a2015da9d","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":89,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"6d4ee4cf-b255-4620-9643-924bda5bba54","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":89,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"ed48457e-aa70-40df-b0aa-4b874af7c866","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":"c1ef86f0-cc5b-4e01-b32f-93500222d2ca","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":"f71b255f-c05c-4cb3-9f2b-b2e8765ff081","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mor tgage loans or pass-through","page_number":89,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"d76821df-aaba-46c9-9991-9d4356324d32","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":"7c8659be-3a8d-4ac4-979a-60a32301d7b1","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":89,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"27d16401-8821-43ba-9e46-6cbb32071504","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":"cf00a271-628d-4518-af2f-9dc2558fa7e2","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":"d85f2143-fd96-4b76-9ee0-57c5988720b9","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":89,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"a6376f25-daa8-422c-ba85-78f380401dde","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":89,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"d23ccb45-fd9c-4b7b-a5c3-7643be3e9772","block_type":"box","text":"II-51","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0efa2b74-212c-4235-9049-3b40e78b7ecb","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"015b4c3a-1d92-43a5-8fe3-288511b1e849","block_type":"box","text":"guaranteed by Ginnie Mae (such cer tificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":90,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"40b1a55c-ab22-4076-8015-252b14347a6c","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":"b43ec483-38a7-475a-bbce-1c267ef6881a","block_type":"box","text":"States. Ginnie Mae cer tificates also are suppor ted by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":90,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"6d5416cb-cb44-4f36-855a-9dee26bdcc58","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":90,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"3186c08f-13b6-43fa-8d9e-e328d20434c3","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":90,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"bfae0050-de8c-404b-a7e4-384b138d3eaf","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":"5dbc36f2-6bfc-4709-bb04-06f27b6874c8","block_type":"box","text":"faith and credit of the United States, but are suppor ted by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":90,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"3615a695-b552-40a9-8caf-0e80b2421dc8","block_type":"box","text":"Depar tment. Fannie Mae was established as a federal agency in 1938 and in 1968 was char tered by Congress as a","page_number":90,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"2e2eb657-6039-4b5d-8908-6ad0e39e901f","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":90,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"9038ab74-5b75-43aa-834a-27f27bc0fabb","block_type":"box","text":"Mor tgage Par ticipation Cer tificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":90,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"49284513-96db-4fc5-b432-e515305031ed","block_type":"box","text":"corporation char tered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":90,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"a136f1ad-cddc-4173-b12e-edb67f3128aa","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":"f0fc12ed-3538-420c-8e8d-e03cbe8cc9d4","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":"e1bbed8f-6537-417f-826c-0317c1c4ef22","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":90,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"1a866581-c089-42ba-b7c7-028cb7045c53","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":"8eff6ad4-d7f2-4d84-a1ce-860f676ae001","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mor tgage, but","page_number":90,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"ebde64e2-68a7-462f-a569-6cf80cea5ecc","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":"600a8faf-df58-4dce-88d0-bfc21fb59f28","block_type":"box","text":"Private mor tgage 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":"c4bd64b1-70a7-4bdc-844e-67b7f3e19165","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":90,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"4058ca2e-7daf-4f90-b2d2-be4a954088f3","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":90,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"6b0059db-4df1-4b01-98de-997366951a6c","block_type":"box","text":"Pools created by private mor tgage 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":"c023a716-7c04-475e-88cf-b4e82d39b540","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":"710e64fc-b740-4102-a5ea-6fb88533767b","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be suppor ted by various","page_number":90,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"6ce71d4d-6d96-430a-aba9-1215df62e772","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":"7652433e-2a63-41fd-a74b-9a94222ea065","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":90,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"0d8d1ffd-d58b-485c-bbf3-72f8e6416321","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":90,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"a02e13aa-7ff1-400a-bc6f-7649f1d88083","block_type":"box","text":"a mor tgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":90,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"3efcb6f1-e489-4d1b-b8c0-72ed47225c38","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":"e54e1ba8-4110-4d2c-a932-56d18bc00545","block_type":"box","text":"mor tgage 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":"056c3ca7-c934-4a15-931e-0a57ba9810c9","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":"160cec37-d436-47a1-96c6-e4da3524d5bb","block_type":"box","text":"meet a Fund’s quality standards. Any mor tgage-related securities that are issued by private issuers have some","page_number":90,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"bcf88742-5fe0-403e-815d-237693d3d772","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":90,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"1a5e34a4-bdb4-4dd8-b83d-faabf13c0a8b","block_type":"box","text":"In addition, mor tgage-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":"76c3d0d5-ec2f-47e3-adc7-25b3a4abf121","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":90,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"9136c188-6f50-4e45-ae5e-8370247130bc","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":90,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"d9ffb883-a397-4df1-bb4e-d9f579981e17","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":"71380ce7-ee17-41df-b81a-9aa291bac974","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":90,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"0e4ed563-62ce-43fc-963d-07c99b91ab05","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":"d4f80e99-e30f-4e3c-a5c0-62c86936067a","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":90,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"606a0d56-c1ea-410c-a8e7-702c9d946c25","block_type":"box","text":"rates and maturities of the underlying mor tgage loans in a private-label mor tgage-related securities pool may vary to","page_number":90,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"4c288ee9-c85c-4baf-8b7c-ee4517cfd816","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mor tgage","page_number":90,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"aebc3126-d490-4223-b185-3f0836ea3c42","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":"bd71a1cb-fccd-4b93-a970-3bd709f08a15","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":"0d4cd648-00a6-4006-9064-e184fadac82b","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":"2a944233-5676-46ec-ac51-39505709a3f3","block_type":"box","text":"The risk of non-payment is greater for mor tgage-related securities that are backed by mor tgage pools that","page_number":90,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"8ff01fe0-ac2b-4048-9f87-2fbccadb636c","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mor tgage loan","page_number":90,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"a84c042a-bf80-43bb-bdb0-75890d8868ea","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":"fe930b02-98fd-44db-8001-85046fd6f024","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mor tgage","page_number":90,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"a470570c-ec37-4f47-a002-8445f53ae4df","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":90,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"5abef991-6f98-439b-8338-1993728396ce","block_type":"box","text":"Privately issued mor tgage-related securities are not traded on an exchange and there may be a limited market","page_number":90,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"69e9239e-47b9-4906-8191-fde813f4d336","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mor tgage and real estate market sectors.","page_number":90,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"c69223e7-adbf-4437-85f0-37ac5b6093a4","block_type":"box","text":"Without an active trading market, mor tgage-related securities held in a Fund’s por tfolio may be par ticularly difficult to","page_number":90,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"d032f143-78ae-411b-8594-f1d2f738b8c5","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":90,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"aa88d209-97df-454d-b4c0-6dc92853faf2","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":90,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"f690c004-ae56-4622-b5b0-a36cf01c562d","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":"2a05b434-b93e-499c-b40a-2341f6152e86","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":90,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"0c32ec0c-5bcf-415c-82d6-d7cdcbb9c4e9","block_type":"box","text":"II-52","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c550c908-c321-4297-95be-7944d6b22391","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f9bad9b-73df-4aa6-86db-908e96de137a","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mor tgage loans or private mor tgage pass","page_number":91,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"5f320359-1ac9-49a0-bb49-c8ba1350c2e8","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":91,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"75c8b37f-c816-4faa-a5d3-71654bd637a8","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":"003b9aac-6a13-47a9-82fe-5ef8db2bb0b7","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":91,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"b0f36f88-77a9-474d-b0a4-0b5ae31b5c8a","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":"f66e5d5b-ce16-4f1e-bd6c-07de1c576c58","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":"fa186aa1-b0c1-4aff-a033-a2afe93dd2e9","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":"d722beda-057c-4709-86ad-b669727a7ab4","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":"a29e5765-b5de-4b7d-b1a8-7ed413ede7e1","block_type":"box","text":"de facto breakdown of the underlying pool of mor tgages according to how quickly the loans are repaid. Monthly","page_number":91,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"0573cc96-b521-4b5e-a7a0-14ca6ef24bb6","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":91,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"a843b54f-f9e7-4bef-b45a-0c97749dcba0","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":91,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"a0ae2a04-4340-47fd-97f0-98848586289d","block_type":"box","text":"only after the first class has been retired. An investor may be par tially protected against a sooner than desired return","page_number":91,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"b57f6c70-c6a8-4989-ae74-0bafd33d10ae","block_type":"box","text":"of principal because of the sequential payments.","page_number":91,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"167353f2-0004-4362-b285-51fa69cf9a77","block_type":"box","text":"Cer tain 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":"fc57b2ec-8a59-4c1c-95bd-6a8521d08b10","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":"979e9672-e90b-4511-b5e5-e3f341b11db7","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":"24d397a1-d243-4d7e-9deb-8527c62a19b4","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in cer tain other qualifying CMOs, which cannot or do not rely","page_number":91,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"6b9570b4-5327-4442-92cc-f15999d3d286","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":"12319520-706e-4eea-ad9d-3280802aeb74","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":"ce5f5f84-cd44-40d5-a8e5-9bea3c58890e","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":91,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"0e2c2c2f-f572-48ec-a5f5-ab600022d2dd","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":"a7b97419-ee3d-4198-9100-b2064bca96ce","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":"692ac2c7-17d9-4254-a82c-093bdac9607d","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":"6a28d2ee-c532-4078-9d9d-c5a65fe7031d","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":"fc395f26-502d-43a7-9667-01c43d771b17","block_type":"box","text":"securities of any single such entity.","page_number":91,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"c0ed37ae-878e-43c5-905c-e6468b81b1bd","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":"06ae11ed-adc0-46b6-9d20-1bf4b5cc5026","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":"2ccaec2c-015e-4d55-8bbe-61ec79672ab2","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":91,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"3810c54f-6d3e-46b6-8fcd-62cbbdf48bd0","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":"f8635817-1063-4c4f-b1c4-b82c473aaf14","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Cer tificates may be issued in the parallel pay","page_number":91,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"2b94fcd9-4c99-46b0-ab7e-032c4de3dc6d","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":91,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"3fd8747f-6c86-4032-87b5-080b92f9aaa0","block_type":"box","text":"accrue interest at a specified rate until all other cer tificates having an earlier final distribution date have been retired","page_number":91,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"1487fcaf-0bbb-4d3e-bbd8-69feb30c93ba","block_type":"box","text":"and are conver ted 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":"8d9e5ede-07b5-4ddf-ba50-d015cd2d43a0","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":"33ac8cd6-3742-444b-a7a7-da122bc90737","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":"41622db9-0b56-45a3-9f7d-e8b10822d6f6","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":91,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"dd9f1762-0a7e-483f-bbdf-c4bf8ff7c9d5","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":"c96ee36d-aaa0-4933-a6a3-375a73f6dbcb","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":91,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"2f10f698-47a2-404b-b44e-9faec803c627","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shor tfalls, if any, are added to the","page_number":91,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"9cd26471-8577-40f7-b054-ead5175ae0a6","block_type":"box","text":"amount payable on the next payment date. The PAC Cer tificate payment schedule is taken into account in calculating","page_number":91,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"68c6c7ee-6bcb-47f3-a6cf-ba3afaae7ec6","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":"307a1c56-a4d8-402b-ade8-32a8fe25022a","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":91,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"c8e97376-4b56-44a0-918a-c57fccb74d6a","block_type":"box","text":"“suppor ts” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":91,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"18bbe526-a2b2-4970-987a-35216a2ab9b1","block_type":"box","text":"classes.","page_number":91,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"ea6783b3-3155-4395-870d-da5f9dcdec55","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":"b67544b8-87b9-4301-a934-27c6319cb29b","block_type":"box","text":"date to one or more classes of REMIC Cer tificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":91,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"81aab748-e37c-4618-a2cc-60f25e06822e","block_type":"box","text":"prepayment rates on the underlying mor tgages do not exceed cer tain ranges. In contrast, a TAC provides investors","page_number":91,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"1084be63-ab7c-462f-a1c0-dd2ee7956572","block_type":"box","text":"with protection, to a cer tain level, against either faster than expected or slower than expected prepayment rates, but","page_number":91,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"e886a551-4a2a-4c50-bd62-cd06f1509154","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":"5cd0ec0d-2bc1-4873-a1ed-a5eb5d598917","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":"2a440860-8485-468a-a103-480f0b9bbf35","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":91,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"82dc5af1-39f2-42eb-8e69-7891d8db60cf","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":91,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"a7e74fff-5ce3-43b7-bdba-245660bacea7","block_type":"box","text":"collateralized by mor tgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mor tgage pool","page_number":91,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"2adc2e38-82a0-42ac-9e7f-c841940c9d7f","block_type":"box","text":"generally provide for a fixed initial mor tgage interest rate for a set number of scheduled monthly payments. After that","page_number":91,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"4d653cc0-dcb5-430e-abb2-d8b1435532b7","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":"a9187aec-f2ab-46cf-846b-6d65425b6c06","block_type":"box","text":"to a designated benchmark index.","page_number":91,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"a90e970b-5323-4a94-8ad1-f3b0562392e6","block_type":"box","text":"II-53","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0194136d-d870-4d56-b09d-d2b2c09eccaa","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d393a73-78cf-4043-bf86-f2be7faa724f","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":92,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"6a2ad216-e48d-4a33-bb0a-9a9eb0856237","block_type":"box","text":"lifetime of the security. In addition, cer tain ARMs provide for additional limitations on the maximum amount by which","page_number":92,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"f8bd9cb8-0fee-4d93-bcde-58caf8d4d5e5","block_type":"box","text":"the mor tgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":92,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"24557918-ef01-4d71-9af2-8b4a7c1f9874","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":"4c1486b6-f674-46f8-811f-7d646c97fea3","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":"11c35dd2-a627-4782-9a21-b72a79c40b00","block_type":"box","text":"Cer tain 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":"5e2ff29b-49fb-4107-8a39-fda7fdab44aa","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":"5b3a44db-3a48-4e2f-b7a2-3eea10c3a298","block_type":"box","text":"balance of the mor tgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":92,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"8bc19d42-9391-4e95-80de-cf6228d06704","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":92,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"4965d80b-60de-4bb9-9040-0ab3cc18dcec","block_type":"box","text":"payment required at such point to amor tize the outstanding principal balance over the remaining term of the loan, the","page_number":92,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"ab4b4a13-139b-4311-9562-0c459a9a7b21","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":"18c54a2e-7e14-4138-8ce5-3a60c9edba32","block_type":"box","text":"CMO Residuals.","page_number":92,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"afa518fc-d55d-464a-80c9-bef88f8e6a49","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":92,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"894a4028-fb01-4942-be60-3021d84233e4","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":92,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"5cc9b8da-5f02-4b50-8f0a-1b7aabede08c","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":92,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"01676e52-fb9e-444f-b210-17c127774e7e","block_type":"box","text":"the foregoing. The cash flow generated by the mor tgage assets underlying a series of CMOs is applied first to make","page_number":92,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"35450ad0-292c-4148-860b-7221c50c79b2","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":"b2a4f09d-e8c8-4bf4-b7f8-e56e094e093c","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":"02ff09c0-2794-4854-9141-75c5ecd58aa7","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":"f5d90833-0531-4271-8cd0-04cf2d683ee4","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":"3138c9a9-e213-4ffd-8690-777b7d170c75","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mor tgage assets, the coupon rate of each class","page_number":92,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"b4f76c3c-7fec-4efc-9196-e9872d05171f","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":"39e438e3-ccb4-40a0-95c6-128bc390c148","block_type":"box","text":"mor tgage assets. In par t, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":92,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"edd1857b-e533-4f08-a441-a3ad30d6b1c3","block_type":"box","text":"related underlying mor tgage assets, in the same manner as an interest-only class of stripped mor tgage-related","page_number":92,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"4999a584-bc72-40ed-ad0c-4b7066dd3031","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":"8551782a-3e36-407b-b5ef-85351bd1a08f","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":"f77f38ff-d393-46db-ab8f-7231f77725e0","block_type":"box","text":"interest rate adjustments are based. In cer tain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":92,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"c0bb3a6a-cc8f-44ee-b886-8b9db475cc3f","block_type":"box","text":"a CMO residual.","page_number":92,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"b45f0260-f737-4eb3-9651-043c92a9bf85","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":"70865000-c32c-4615-a60b-2bd6315a6fb2","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":"993f3903-6116-4895-996d-fae99ec7223f","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":"ae35d28d-7f1b-4cf5-abf8-ac77bc0ab4ba","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":"eb628443-da6c-403c-9caa-0c0977c8c65b","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":"8b4e500e-c76e-429c-818a-84ecd5551cb2","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":92,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"24068f6c-63cf-4d22-94d8-8f77731652e6","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":92,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"a9e2d021-c2b2-4320-85bc-748c6455c352","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":92,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"64e1bc79-8740-484d-994b-a9eb87baa605","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":92,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"0c082d24-022b-47ae-8a80-ac0cd51783b7","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":92,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"5ee76476-669b-4c9b-be8d-c95bc0654794","block_type":"box","text":"interest and principal distributions on a pool of mor tgage assets. A common variety of SMBS is where one class (the","page_number":92,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"5b56fbf8-6135-4c30-80a3-326fc3c8aef6","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":"a9bcae84-2b84-4415-8257-5e357afd6a26","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":"00d51f42-1ebc-45c9-9308-95d9a31cd579","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":"7fd68a31-9cbb-4cc1-a17a-b8790f24a0df","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":"873c9241-dbd4-4b8d-9f3e-e7c873e59a5d","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":"f575ba5d-0c1c-452a-94e2-0339383067b6","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":"8b891979-3bab-472c-9667-88c8b546e1e9","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mor tgage assets","page_number":92,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"5a109e41-150b-4d2b-9641-5263c5ed00ce","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":"8af8aaab-3995-48f7-98a6-8ded7dbc708c","block_type":"box","text":"In addition, there are cer tain types of IOs that represent the interest por tion of a par ticular class as opposed to the","page_number":92,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"3e04150f-c65a-43ce-bcc5-3c5140337345","block_type":"box","text":"interest por tion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":92,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"5b92a5be-6110-4cb2-be7d-fd0e7a91581a","block_type":"box","text":"because of the characteristics of the principal por tion to which they relate. As a result of the above factors, a Fund","page_number":92,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"09697b4c-29a7-4c8b-9d03-de82504ab40b","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":"d064bfe6-5a35-41d7-a494-e67708983952","block_type":"box","text":"will be matched with cer tain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":92,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"e6144bca-3570-4952-915e-63094abe5477","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":"9b406548-2295-4030-88d7-f801ec41391d","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":"1c00a40f-9807-41c4-ac86-e6104fad55e3","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":"5aebeace-b43f-4fc5-9b66-3d9b3328d457","block_type":"box","text":"Tiered Index Bonds.","page_number":92,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"6ecd864e-740a-4c58-8d29-b92e312af13a","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":92,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"22561b19-d245-4c6f-9126-6dc480d80e6c","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":"e4d3bde6-adfb-41f7-9835-566f49374ecf","block_type":"box","text":"II-54","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f1478e3e-3424-4fa2-a702-b0487c44d828","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8752cbed-b86a-4496-ba9e-18da9d3b5cdd","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":"5804d2b4-1685-420a-a882-f427d05940ea","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":"271c6580-fc1e-4beb-9472-357f6d523094","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":"8f5eeaa8-c79b-4e1d-a756-f4d4508bc8b0","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":"606265fa-94d4-4052-b955-356655307823","block_type":"box","text":"that of a fixed-rate bond.","page_number":93,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"ffa10d1b-6942-4fc1-93cc-f341e9291546","block_type":"box","text":"TBA Commitments.","page_number":93,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"341d92cd-1404-4e20-9aeb-c2830b11d0f4","block_type":"box","text":"Cer tain 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":"45017917-19e9-4166-93a6-e5ef1db73960","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mor tgage-backed securities for a fixed price,","page_number":93,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"46e7b121-6f8e-4f65-9344-b78737ef95fa","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":"36613095-a0a8-4dbb-a6ac-05d695a7b090","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":"38cf800c-dfbf-47c1-a5ae-991365bbfbdd","block_type":"box","text":"mor tgage terms. When the Fund enters into a TBA commitment for the sale of mor tgage-backed securities for a fixed","page_number":93,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"279cb4d3-aaae-482d-9ba6-d29b6c4ff8cb","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":"208d83d8-c9b2-4893-8031-2727ea7d9bc0","block_type":"box","text":"shor t position in such TBA securities), the Fund may or may not hold the types of mor tgage-backed securities","page_number":93,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"e71564f5-ac43-42da-b4ec-8950d14f78ea","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":"f1842d83-9e5f-419b-98c3-7ebca1d88e67","block_type":"box","text":"below.","page_number":93,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"a5739d84-d559-45fa-b7a0-961a3c099851","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":93,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"5d6ae2a0-42d8-4b86-a02f-a1f54a2fae81","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":93,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"1a22f0d8-1c00-487f-8c06-7c93557cf40d","block_type":"box","text":"Fund sells mor tgage-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":"1ab7df35-614d-4c11-a322-72a9a4ddd582","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":"9d19c69c-24cf-4bab-a56c-8c1fce528481","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mor tgages collateralizing those securities may have","page_number":93,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"f92384ce-34f0-4152-a161-305bc23e893b","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":"c4f50821-0ee9-421b-a92e-17297a99b4f4","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":"1358856d-ee26-45ac-b404-391b54c0d99b","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":"868f6cea-0410-4c9c-9f26-85c8dd249ca4","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":"91a3666a-1aee-44c2-93b5-997a629d3eab","block_type":"box","text":"securities sold as par t of the dollar roll, the use of this technique will diminish the investment per formance of a Fund","page_number":93,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"a5519406-2cd4-4863-9c4f-4b75b8aefacc","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":93,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"5cff1e1d-0c82-44ea-abe1-f1bd6e0d71a3","block_type":"box","text":"Each mor tgage dollar roll transaction is accounted for as a sale or purchase of a por tfolio security and a","page_number":93,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"7398da75-07e2-4456-9581-821173a314d2","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":93,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"90c62d7c-d3db-415f-b635-9bddc37388b7","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":93,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"0f15a295-9f43-4e2d-8e2a-f8f1f91319a2","block_type":"box","text":"In the event the buyer of the securities under a mor tgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":93,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"14b6b387-ac81-4070-8106-0217f292321d","block_type":"box","text":"Fund’s use of the proceeds of the current sale por tion of the transaction may be restricted pending a determination","page_number":93,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"3ce545f0-3d7b-4c9c-9eef-838737041045","block_type":"box","text":"by the other par ty, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":93,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"d2ed657f-626a-433d-9fb8-dcce172a2496","block_type":"box","text":"securities in the forward transaction.","page_number":93,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"3db1f67b-e63f-4b0a-ae0a-ab76a3296dde","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mor tgage dollar rolls may","page_number":93,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"2e4f60ba-46a1-4842-b5ba-4b2890998658","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":"ac113b72-61cb-47bd-b11c-cfa91eb883d0","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":"75a56903-a2c7-4d35-9ef3-513a668f4718","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":"50362865-4f93-489e-87d3-86da138f2780","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":"bad0867f-381c-4c99-8a61-6018cac10225","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":"31dbb2cb-8750-44c0-b557-b4060a06aa46","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":"f387b96f-5068-42ac-b432-b8d50c79e0cb","block_type":"box","text":"securities (","page_number":93,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"3fc7683d-2232-44c4-beda-68f73e64aa26","block_type":"box","text":"e.g.","page_number":93,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"811b18f5-cc06-4bfe-a6ef-f7e4a3688359","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":"25ddd5a9-e2c0-45a9-ac1e-de2523304bb4","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":"c262effa-368f-4042-b1be-e86b8b2bb9e1","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":"285f22f2-9379-400b-b896-360a0e9eb075","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":"8684e08c-c982-4217-b2ed-f84c3201f571","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":"70afd208-5b8f-4f22-a913-5c0fa0a965ee","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":"09a3ae44-1e9f-40f9-8c93-8aa99f4155ce","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":"ee0b4e8e-bb96-4185-9dcf-e05316ef63cb","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":93,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"cf9fbc94-7ee7-4944-b018-42b8014c6c64","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":"e2c47f91-5157-47f6-843f-bc63d3197d43","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":93,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"894a91e4-b690-4e38-a3e6-0ae57762ef15","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":"6a000dd4-b2e0-4023-b9cb-0ada48363477","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":93,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"f57dbdf7-1679-4a22-ab34-6d4c48c8738b","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":"ae07a324-9fd9-4da8-8c76-b4b7f7f772d6","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":"19581a8d-e85a-4deb-a7ed-3e4a2dfe3d0a","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":"43954808-f810-4256-a202-013c221d5c76","block_type":"box","text":"Municipal Investments.","page_number":93,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"ed751500-0bfa-419e-a9fa-3d60b5263037","block_type":"box","text":"II-55","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a4606687-203e-4f59-afb2-f6bb2912979f","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3ce568f6-21d3-4e80-ad9d-c9e37d9db1a6","block_type":"box","text":"Cer tain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":94,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"362c222f-7e7d-42b9-aaf5-52e1c2163bf1","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":"869e8f01-55a7-475c-8028-523e3f0db445","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":"d41dc7c6-60c0-4528-8f36-a185ddf53537","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":94,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"5f852021-bcd3-4f5c-b6ba-2f746ab1fab7","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":"14d7dd7e-9237-4db1-8522-5894c449c8a8","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":"28b33004-34bc-4201-8fad-45ec7c96ee10","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":"5700e29f-1f6c-4980-a737-bb1305050557","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":"4a9a1446-003e-4486-a395-aae2856da66b","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":"7d888433-e293-426f-98c6-604019dffd7c","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":94,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"8dd5c5f4-504f-42f7-b326-59acab1c245e","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":94,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"54f76f20-a678-4ecd-a536-f7d8d79243ab","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":"7db8e2bb-1e13-462a-a6c7-388c1bee1743","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":"c92b086b-da77-480e-9aa5-a78c32fdcb1d","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":"650c885c-6906-4887-a702-9de37aeb88b1","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":"67694991-496c-4914-bf58-1fcc3b9df759","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":"f6097cf2-dcff-41e5-91a7-c2daca81c7f0","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":"9cff58fe-7cf0-45aa-b33a-56f07e91eef5","block_type":"box","text":"exempt from state and local personal proper ty taxes of that state will be considered “State Municipal Bonds” for","page_number":94,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"588946da-fcbb-4317-8c49-605f00f24ff1","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":94,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"fb5c455d-62ce-47e6-be3c-27a03bd55c72","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":94,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"a8874998-d5cb-457e-a71f-d128d9736b4d","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":"52e883bc-9c53-43ef-b4f7-5b26c14f2ce2","block_type":"box","text":"The risks and special considerations","page_number":94,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"35233e0c-697e-4474-85d5-8e43c9f1a622","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":"7b7b623b-a517-47ad-b8e8-9b4d6db6607c","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":94,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"b855e71e-c6a8-474c-8ba6-80278884ada6","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":"8a19b4d5-6a6c-4930-ad60-7d8bfe8e3fdc","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncer tainties in the municipal markets as a result of","page_number":94,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"cd8cc4ed-d62b-45eb-8ea4-729b02ad5a3e","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":"63a6174e-de54-45b8-8a82-a7a9020e9d87","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and cer tain provisions of the","page_number":94,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"d1bb370d-7ef4-4dfd-9fb2-173da2c8c5c2","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":94,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"3d67f716-134e-4be0-ad03-0738f1237b14","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":"79bdb23a-7616-44bb-b29b-c00cfaba8d30","block_type":"box","text":"uncer tainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":94,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"707382b3-0fde-4a7f-85b7-0ced554e0b68","block_type":"box","text":"II-56","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"408656f2-c8ab-417a-879a-8e6e54eed95e","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ea5abf93-c084-446a-ab5b-6339601902b9","block_type":"box","text":"Description of Municipal Bonds.","page_number":95,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"da35ae81-979c-4cef-933a-eb511c0997a9","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":"57da8385-00a8-44ba-a933-38ebff4ed33c","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":"5ee45c67-1155-49cf-9c53-8ce1e04f3921","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, cer tain types of bonds are issued","page_number":95,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"237d9e48-43c0-421d-bb3e-24e71e03ac71","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":95,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"759cb7bb-d2ea-45ec-a5b8-773a2f72982a","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":"a92bb66b-2502-42e9-8826-9c17a257cd47","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":"cefb74bc-6587-4314-b9da-79c88a3f690b","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":"d4e0ca0f-60ad-44c9-a974-44d594c09286","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":"41636ccc-a88c-4cf8-a5a0-87796c191d3e","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":"9fdedd61-d979-4a17-acfe-de82bab864ee","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":"dc379e05-d8a6-4037-832a-030713174368","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":"ef329978-f553-48af-bfa1-fc019c6d9f3d","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":"a7b0b678-8e48-44c8-9669-e302f7a2377b","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":"470a9dd0-8a7f-4725-9ede-394245cd6643","block_type":"box","text":"General Obligation Bonds.","page_number":95,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"20ba052d-37ad-4b69-94fd-1c842c39eb73","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":"014052ef-0a01-4e85-9759-5e9db9fed03a","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":"1b1e6b8e-ce61-437e-a503-6210db28cbd3","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditwor thiness will depend on many factors,","page_number":95,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"c20e52e5-a99e-44b6-85aa-a59d30cbd506","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":"88308ea6-139a-47d9-9f91-98821f79e2de","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":"a830fb3a-ad6a-4ff2-b166-f6de5de79114","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real proper ty taxes and the extent to which the entity","page_number":95,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"5422abb5-18e4-4e49-bf97-5cf24036639f","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":"03e782c1-0d38-4db8-a407-e1fff90be922","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":"83ed7d81-649b-4ab3-b84a-08a063137bca","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":"f9eefe6b-038c-4cf3-9f73-c3fbec65df96","block_type":"box","text":"Revenue Bonds.","page_number":95,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"b1a32033-a63b-4542-96dc-bc848a63956a","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":95,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"26f6073f-f293-4ad4-a95f-1ef6a3114f37","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":"e90fdcaa-e834-46cc-bfc1-b2c69abd5705","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":"a5c6e2bc-746b-4959-ab76-02c3029d6af9","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":"90bf5f31-9a4d-4a71-943d-05fc77174185","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":"e0dfcfec-1279-43b5-94df-37f19ce47e80","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":"2bf6e053-ae02-465d-b13f-00eb376e2901","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":"dcb1fb88-2878-494e-95c6-e3def323ccd0","block_type":"box","text":"proper ties 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":"7a432dbc-a5d7-4bd5-bfb0-cada5122bb30","block_type":"box","text":"recourse against the proper ty owner, may be junior to the rights of others with an interest in the proper ties, may pay","page_number":95,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"f9220557-e499-4de3-a1f8-317dfc82ed2f","block_type":"box","text":"interest that changes based in par t on the financial per formance of the proper ty, may be prepayable without penalty","page_number":95,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"87bc0594-5764-4cdf-bb18-8788acc8a14b","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":"bed032bc-f4d9-47d1-b7e5-34fc483200ec","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":"3734b4ae-a88a-4e5c-bd6f-1347ecc3b9b5","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":"311c1423-fb9e-4359-b976-a064bd904608","block_type":"box","text":"PABs.","page_number":95,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"df9ea721-37f4-42c8-8d91-032975f12c89","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":"44209d69-b339-45ae-914b-fb733f88fd81","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":"2d82f9fa-3d01-41a9-9141-87d5f555f0a5","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":"36fbb2c2-5e58-4a72-b1a9-22b9a6d2681f","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":"241a8a7a-1bcd-451d-a37c-57f110843072","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":"35da7c8c-fb89-4858-ba3a-b734b890b1f6","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":"74c0852f-ee2a-45cc-b140-473da17c363e","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":"ebec83a9-6e21-4251-af2c-1a50d561c5ff","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":"3267df12-7ef2-43fc-8157-2d82de4666cd","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":"97b6db67-340d-4965-8ef6-3325ae754672","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":"fbdbe1e4-58dd-488f-b083-17a33790a8f1","block_type":"box","text":"the par ticular facility being financed.","page_number":95,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"8a2244f0-1e55-430d-9c36-c25c29d3e86c","block_type":"box","text":"Moral Obligation Bonds.","page_number":95,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"1c8bf654-0a4b-4c1f-b37f-f85f0c2e065f","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":"d8a0ef64-bfcd-42e7-965d-375bc31cff67","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":"f4ff7308-80ec-4d51-9e7f-be785220c39b","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":"7eac99b2-e959-4cdc-999b-03773b6f3be2","block_type":"box","text":"that issued the bonds.","page_number":95,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"a22aee30-bd13-44a9-a926-d6c517a0ab3c","block_type":"box","text":"Municipal Notes.","page_number":95,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"6680ddb3-b7d5-4fe8-bfd0-6c22933f5ac4","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":95,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"04a9fc8a-1423-4d34-a3d1-031d25d03543","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shor tfall in the anticipated proceeds,","page_number":95,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"196dee6d-3c5f-4a78-bf58-67fa5362ea95","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":"70d349f6-bfbd-48bf-8b89-5d22957ec01c","block_type":"box","text":"II-57","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7b3f57c0-2245-4ad2-a56d-4f9a3dd39b91","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f37ef1bc-cdfb-4565-9ce4-bad7e344296f","block_type":"box","text":"Municipal Commercial Paper.","page_number":96,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"55745e67-1d1d-43cb-b8d6-4013e7a7b989","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":96,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"034571fb-b671-4f0c-b0c1-fe324c3b1046","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":"0350639b-691a-41a4-aa3e-ac3622f2e715","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":"36926d79-595c-46f5-a667-fd244845977f","block_type":"box","text":"Municipal Lease Obligations.","page_number":96,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"0a6e0017-0ebc-4e74-aec8-bb270aaff103","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":96,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"d3ea8abd-6d37-46f3-979b-b8e233bcaa11","block_type":"box","text":"par ticipation (“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":"ebe2b7e5-07f4-44e7-a867-001c1f57d43f","block_type":"box","text":"equipment, land and/or facilities. The COPs represent par ticipations in a lease, an installment purchase contract or a","page_number":96,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"660a04e1-edeb-4f91-8e43-c2fbb49e4c9b","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":"3ed2403c-6a7e-4e94-b5cd-2145986696df","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":"953da62d-880f-41f9-908a-98b9dfb1b55e","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":"aca0b348-b236-4758-9419-359a46dd9453","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":"c94c8156-fe0e-4c2d-94f7-9f5495ed2f30","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":96,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"5479de0e-5d99-443b-8f85-583ac5d9487e","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":"98511a9a-4ab7-4692-95c5-a3f0f91831fe","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":"9448e2d2-35f2-42c6-bc03-7eb5ac628793","block_type":"box","text":"secured by the leased proper ty, disposition of the proper ty in the event of foreclosure might prove difficult. These","page_number":96,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"caedab44-f49c-4c5a-9903-3274643067bd","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":"b396b8a6-c4ae-49e4-aeeb-cfa93c4b88f5","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":96,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"80209175-4da3-486e-b1af-163289a5b555","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":"7910c995-4f5a-4fb5-aad1-6096705410ad","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":"7738ef57-7e5a-4e48-a22e-68512b76187c","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":"d06c8673-1c4a-4b04-a6f9-e03eaf949745","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":"2d1afecd-ee46-4dbb-aa2e-22a002e40131","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":"c0fd6f40-8bc5-41da-a1d7-09af5efe07b7","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":"cee111c6-0bf8-49d5-ac41-9021e1f14b21","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":"2a858b02-a483-474c-ad32-5a81518e8805","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":"7f7ece90-bb01-414e-b1ee-a0bec83e27b7","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":"a578d3ec-293b-4eb4-884d-1d058ff18765","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":"ff5e3101-5330-4358-a90b-67f28d0c3dd7","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":"1bb3869a-cd68-430a-9cee-48a4e6fabdd3","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":"be59e2ac-61b6-4bbb-9c96-f69225946e74","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":"590a14c4-0baf-43d3-8569-5574b3a88809","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":"a98ccc5a-8d95-45bf-ac97-e58df5e4134a","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":96,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"73e32f2e-024b-40b6-8ac9-2a5571811078","block_type":"box","text":"Tender Option Bonds.","page_number":96,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"64b7bfe3-a302-42cd-b8da-75725bfd6f41","block_type":"box","text":"Cer tain 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":"cd904b6b-1e5f-44cc-8f85-1c513273a252","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":"0973554e-d11c-4770-8033-61004ce4be81","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":"3397c5bf-8f72-46b2-b832-0c6ace2964a7","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":"0b5413c5-6f6b-4d94-b24b-09273b1f3d0f","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":"15aea831-a2fe-4f63-a5f7-1bf64cec34dd","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":"c0de70ef-6ae9-41e7-88a9-f0867f7dcdc6","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":"5c56d37b-fbf6-4f98-ae92-60bdce7ff978","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":"152cd689-6847-442d-a642-4b800d7379d7","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":"0a8f08fc-a6de-478a-92fd-b2c13c317494","block_type":"box","text":"beneficial interests: shor t-term floating rate interests (“TOB Floaters”), which are sold to third-par ty investors, and","page_number":96,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"ecde893b-8df4-4c08-9e96-a7ff7b7bdb5a","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":"e9df70bd-97df-41d7-a7a7-9af0c516d408","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":"6c33af03-f442-44ff-a4e1-f85c18f4ee68","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity suppor t arrangement from a third-par ty","page_number":96,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"455ce004-2b06-4d95-841b-d160e54e30c0","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":"7a3b9853-ec3c-43ea-9fa4-bdbf1b5dd796","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":"67b64eee-93cc-4317-ba85-9e62f5bccc2c","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":"508d5aa1-e3cc-4aa8-8069-1a0a0fa06bad","block_type":"box","text":"cer tain 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":"c25df5ce-f06d-4c00-b679-84d668cefd35","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a por tion of the TOB Floaters sold by","page_number":96,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"5b3f716e-6e7c-4885-b761-85cd5fc381b2","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a propor tionate amount of TOB Residuals to the","page_number":96,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"c312f324-c3db-4075-a234-18e163d31918","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":96,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"bb5bc4a8-f0da-4a86-9fb4-5e0c2401c95b","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":"6e6eea82-7a2a-474d-8be5-b3b583b24cf0","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":96,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"79955593-0440-4f44-b34f-66005f27289d","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":96,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"17d64b75-7e53-4a0b-a3c5-dc9971779e86","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":96,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"316abe5b-f2c7-472c-810a-a0efdffe3340","block_type":"box","text":"II-58","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cf600af1-0b65-4020-a0aa-8f9cac02029e","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"49246976-fd35-4205-b27a-88b3052cb38f","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In cer tain cases, when","page_number":97,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"17b0ff8f-4b31-44d8-bcde-804b5a7a7345","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":"2a6f93b0-fac2-42c6-9e74-f6203cc54048","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":"2dc00b05-aece-479d-be25-d6098bfb9b9a","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":"202276ef-4eb1-4671-96bf-abb8969965a1","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":"9e152e8a-c573-4567-a076-87b8e3fd002e","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":97,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"4e10431e-6001-422e-92e3-18924d6f4c8a","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a propor tional","page_number":97,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"2d0c6729-bfac-435a-a566-d70a97bf0585","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":"eaad31b6-60a3-4897-820a-60b71dbf7ee0","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":"e386c59c-f6a5-43a8-807c-7932dc596b10","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":"b8fc2034-dc99-4eda-a2a8-eae3c7e181eb","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":"38b501cc-1a3e-4ea7-942d-8c78ebeaf27c","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":"c7b3f65b-6a0d-4650-b129-8f4737c14e11","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":"bfd0010c-a27c-493a-9e8a-4382faa605b1","block_type":"box","text":"issues.","page_number":97,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"1ad31378-be7c-4f15-af9d-3433af3ea737","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":"2abf779e-0d09-4cf0-80bc-30ec606d4b2a","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":"35308b2b-6d57-40e5-840a-731c7c16f7a1","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":97,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"b00ea666-338d-4aa4-ba53-29fb465486eb","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":"b8ba3202-0118-49af-bfa0-40b1eecf3dad","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":"4a2f6c90-c49e-49b9-ab87-e4c9bd9d690d","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":"8da75e09-b15c-4f0a-b3a3-902f45c7159b","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":"e4c025b3-e8c9-4137-91bf-ff9640408055","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":"71ca6d30-798e-49f8-b548-c6d3e96908ab","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":"44600832-1b10-4a79-9131-6f4383470f2c","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity suppor t agreement, and a substantial decline in the market","page_number":97,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"0e1518fc-4398-4920-9f5a-9d96b4cfcb65","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":"30c1654b-be99-4dcf-b21c-20e48b972072","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":"d32d868c-ef73-4a00-987d-756a342bf8ec","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":"a3a42f26-eb66-41c4-9649-32821ad68996","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":"89e0dafd-30b4-451b-8304-db0d6e084f06","block_type":"box","text":"i.e.","page_number":97,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"96f75dbd-2181-47c1-bef4-b6263752fc7a","block_type":"box","text":", the Fund). In contrast, in the","page_number":97,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"c0a5920c-15d8-4ae2-8d97-074c6559adf0","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":"a65b9cca-0855-40e0-bcc8-b22787c39b66","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":97,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"7ab5f134-915b-46d5-b103-befa0ee0a9d0","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically suppor ted","page_number":97,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"31599a83-1117-4934-ad70-171cf645b3ef","block_type":"box","text":"by a liquidity facility provided by a third-par ty bank or other financial institution (the “Liquidity Provider”) that allows","page_number":97,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"333b5c33-94a7-4921-8ff4-7b5551af3022","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":"275743d9-5c8b-46a6-a7f0-997249092e96","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":"cde8a215-7ee0-4990-8504-6699baa92246","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":"4037fd40-ee1b-4863-bb78-f6a589cabb3a","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":"318d266f-859c-4fce-9d98-c0a8f7930fdf","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":"6014ee3b-8a16-4991-b32b-3dc9bbd401db","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a por tion of the Municipal Bonds","page_number":97,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"c0aeb0ef-f211-4c0b-9dca-7b3f2e9e9ee8","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":"08d05ee4-18d9-4aca-8406-56103ff75ba1","block_type":"box","text":"liquidation proceeds (the “Liquidation Shor tfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":97,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"888e335f-82ef-4a33-82cd-5cb424907534","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":"6ae73a54-0a9d-4f42-a0dc-fa7865054f78","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shor tfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":97,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"c8cb47de-6c9e-4664-b300-a6198704f987","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shor tfall. If multiple BlackRock-advised funds","page_number":97,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"314f8e41-1795-4d29-ba4e-0352b1860a46","block_type":"box","text":"par ticipate in any such TOB Trust, these losses will be shared ratably, in propor tion to their par ticipation in the TOB","page_number":97,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"6c7b1d15-61b7-4d29-8eae-8aa5546fd35e","block_type":"box","text":"Trust.","page_number":97,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"e2c38b00-e716-43fe-8c3a-229fb1cdae50","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":"80974667-bf8a-46c1-b45e-016063a3faad","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":"045296fa-4c3f-4566-9d81-411033095cef","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":"6ed495f5-b25e-48cf-97a9-3882151fb536","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":"81bd1754-78d4-4f48-aecc-33f258569231","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":97,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"405b0353-5358-4e55-93d1-9ac0e1f94b75","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":"a9327bea-e340-4833-865b-f7152b73a241","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":"91310432-fa53-4692-9838-ef447b4daf71","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":"e3ba2dcd-c7b7-4133-861c-e30dac54443e","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":"3de0a30c-1474-4193-b2ec-bbf960d42188","block_type":"box","text":"II-59","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"92f88fe7-4087-485e-9a5e-3794195e3e5e","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ab575ba9-2b79-468f-9fdc-9a600e74f1c0","block_type":"box","text":"Since the tender option feature has a shor ter term than the final maturity or first call date of the underlying Municipal","page_number":98,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"b3c1e4fd-c3e8-4c47-8ce9-16f1ac92e228","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":"9e04320e-a4b3-4049-923f-8ae2e65e3deb","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":"51b62d87-bf90-443e-9d4b-47e5d3403fae","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":"26a3501b-5798-4804-9fe8-298f0046bc59","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":98,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"bf4a3ca6-0a2d-4504-aedb-08b85e2b07dd","block_type":"box","text":"of which sponsor and/or provide liquidity suppor t to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":98,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"1b2bbf0f-cb31-4b25-937a-9fe07545650c","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":"9582142b-8c63-4ad6-9e40-873f20db9f0a","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":"11a69bc8-02ee-4e9a-b2a0-1359f5ee2973","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":"d2bacfa0-a1e2-4622-b67b-ff75001ac672","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":"39470692-1cea-4555-9ae8-377e8a264053","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":"e147d16b-9635-4529-973a-d76d77020b63","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":"205e2662-6742-431d-bea7-98654ec57234","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":"4ac57e5e-5eaa-4346-a8af-9bcaedaaf608","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":98,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"323c0a26-1892-4ff8-9f0f-19c38e959bf2","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":"ad81ebbd-cd57-4b49-be0a-1f1579503913","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":98,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"058dffb3-60b8-4f04-8895-f81c31f3ddd2","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":"f750cf3d-fd66-410f-823e-26cb37ad67dd","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, cer tain","page_number":98,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"bccc35dd-c933-4a62-a10d-53f080c4de85","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be per formed by, or on behalf of, a Fund. A Fund","page_number":98,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"e120d095-f87a-4a37-97c4-e3143d3c2c30","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":"f373cdd5-4491-42d5-8009-0d7d1d9ffaea","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":"06d443b3-325e-4a3a-8ec7-5250b1b63cf5","block_type":"box","text":"this TOB Trust structure, a Fund has cer tain additional duties and responsibilities, which may give rise to cer tain","page_number":98,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"3afc02d6-320e-418b-9bfb-fffcfb1907de","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":"b8fd68f2-3e14-4feb-989b-1f2f4d2ee717","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":"e9aba24c-8f13-4b28-ad21-6cf2623ddc06","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":"f01c2cc7-4e59-438e-be9d-c38faca18177","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":"364dcd06-30ce-4a52-a12a-b3526b5a8bd0","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-par ty investors, and the proceeds of the sale of","page_number":98,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"9b87f733-572c-4aab-a883-708b9bfe78ff","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":"98e7b57c-acc5-4b95-a2ae-8802cd339429","block_type":"box","text":"i.e.","page_number":98,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"e936e7e1-265d-4296-9c6d-1d947ffce351","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":"42b1dae2-6053-423e-a002-b93791b878cb","block_type":"box","text":"suppor ted 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":"e6028818-9729-4783-b146-c87aa0089e5e","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":"9105d44a-775e-4251-af09-6cd4815442af","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":"9424359a-9d59-4692-b899-f892adfbb03d","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":"8a90dd6e-5ace-4ace-8751-08a86d126d1c","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":"33c5fa32-8ead-40ad-9029-048edef01855","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":"60bf28eb-1192-4106-88ee-fc46750bcf8e","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":"7f227e38-7697-4d7a-ad46-e1bdbc9b2184","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":"38474444-f676-4e2d-9414-295a2e4d9dbf","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shor tfall, there would generally be no","page_number":98,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"b0adab18-bf98-45c6-a670-44adad82a5d3","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":"9975b683-2627-43bf-903a-877e74719b6d","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shor tfall if it holds a recourse TOB Residual.","page_number":98,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"69094392-4340-4ee8-b094-490288bb3413","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":"e1b41326-3d6f-4458-b525-2d49412a6e24","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":"4517a1b2-783f-44e8-b885-ff45b94e96d6","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets suppor ting the TOB Trust’s Municipal","page_number":98,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"98309720-fca5-4854-9483-789ebf9bfecc","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":"76eb2617-d20d-4687-a484-93e394610dc1","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":98,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"c1b737ca-36d7-4ded-9d05-ef35f7626d5d","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":98,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"b5cc02d9-46db-4d8f-95c5-57fcdaf0cbe3","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":"55414994-c849-4f9a-a383-fccd52c7ac4f","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":"72688fbf-f8a6-4a0a-881c-d273b87ab578","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":"f468ea0e-a292-4dcb-ba39-882eac76fde9","block_type":"box","text":"market is not yet cer tain.","page_number":98,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"89077747-1f6b-4e48-9da6-0763de3ff628","block_type":"box","text":"Yields.","page_number":98,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"e4e26a1f-5309-40ab-9219-a00cbeeca653","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":"e42873f3-118f-4696-8276-802c3f15f279","block_type":"box","text":"money market and of the municipal bond market, the size of a par ticular offering, the financial condition of the","page_number":98,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"62dfea8d-7f9c-44d7-944e-dfdef4bcf063","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":"ef6ae3d7-fec1-4170-86d3-1158985fcea4","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":"1c60364d-ec79-4372-afe3-bcee0a14af00","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":"638d5abd-7783-419c-a1f7-eb31f61f660c","block_type":"box","text":"II-60","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2a4caf95-2520-4008-9a3e-bd11b3d71c1a","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cdbc23fa-d946-4fa2-8c5c-4a63fe87f167","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":99,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"181c87c8-79d5-410b-9df8-880d06ff82ea","block_type":"box","text":"factors. Fur thermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":99,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"7d62aa6a-e872-41b3-a2be-f31cbab5d4ff","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":99,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"f218d3fc-ba7a-44c5-a227-f9438a83e36a","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":99,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"5766b848-a58a-4df3-98bd-17aa490c2d16","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":99,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"aa27bef1-6f53-46cc-8014-3af02b623f8f","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":"10573202-eb1f-48e7-9f19-93ea2437d10b","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the par t of the holder thereof to receive payment","page_number":99,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"d85887a4-8572-45b3-9615-0b010c28b5ec","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a shor t notice period not to exceed seven days.","page_number":99,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"eb619d00-09dd-41b8-9b5c-efe191d6be4a","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":"0b42a0e6-be0b-4375-a148-d38f5077eee5","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":"aee47613-f953-4cd7-8415-527010525715","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":"ab68731f-2ca4-418c-9850-adbd4e01d717","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":"d458b485-3598-4115-8a3f-4cebbb8cac08","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":99,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"5b3290a3-7d82-470f-977f-bdca8e900b6a","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":"388240d5-54e9-4f68-aeef-fd8268107c7d","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":"71118f30-dc78-4d9e-b629-21a8ac3411d9","block_type":"box","text":"oppor tunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":99,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"689273cf-c48c-44e4-9de3-da302902997b","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":"8c48f784-5c86-416f-b92f-5f31efc10273","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":"9c180943-f914-42b5-8e42-8ce7770a17ea","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":99,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"4f04d6e6-1809-4508-bac5-8114bd9647b9","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":"cf1e2fee-b818-46ac-a318-85cd56617a5b","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":"da4539c3-cca1-49b4-b360-f32977fe7987","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":"96e7de6a-9291-4ab6-a4cb-eef4f2e6c6d1","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":"679e29ce-ae07-40ac-a9c5-07e00099751c","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":"b30356f1-4c62-4b9d-8c78-c1e7d5ff5986","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":"8bbf05fc-fa9c-48cf-b40c-89560c7edc27","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":"4b4286ca-2e90-4b29-b663-abd3b38760a6","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":"745753e6-e4fb-45fc-bd2a-838f38b6083b","block_type":"box","text":"assures per formance 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":"61cddace-8a0c-43db-81c4-151f29d9cfe0","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":"10e04b6e-a095-4429-9187-9d6be79c7ea1","block_type":"box","text":"The par ticular 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":"f5df70eb-dd4e-43a2-8dea-7962161ac238","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":"7dfa22bc-2ca1-4771-994e-a55bcbc404d6","block_type":"box","text":"effectively all or a por tion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":99,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"8b9096cf-bd6a-4428-ae20-1028e26a2ebd","block_type":"box","text":"depend in par t on the degree to which price movements in the index underlying the financial futures contract","page_number":99,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"8bf50850-ce1e-444f-b093-0ca717e0af97","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":"d1f245e2-e4f0-4a36-8bc8-944f1f8e336b","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":"df66aeb6-c971-40a5-8dd2-1d08c0ca53af","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":"c30027eb-cf7d-46aa-9aa2-07c29ce3f3ca","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":"666352f4-82bc-4d66-be01-7b1dca0c4fee","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":"c04fecd9-9b45-4a89-a614-4edda80b46ee","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":"f994cb79-8f9a-4095-b395-152c174daf01","block_type":"box","text":"affected by similar factors and the risk of imper fect correlation between movements in the prices of such futures","page_number":99,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"5020a01c-a745-415b-94db-066c0a5be8d8","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":"7d2dc128-4eb0-462e-8e87-63a086622856","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":"e3dacd1d-29bf-4ae1-b0f0-c13166079bea","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to cer tain market risks, such as inadequate","page_number":99,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"981589d5-9ce7-4e9c-aef0-9d0b62cff17e","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":"651c2cfd-c852-4e01-baca-e8770b6709ce","block_type":"box","text":"Call Rights.","page_number":99,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"a7bbeef6-362b-4e45-823f-3b8d28cc42da","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a por tion of such Municipal Bond","page_number":99,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"468c791d-2be7-4750-81fe-031333e62c3e","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":"295a6bbb-bef3-4611-ad86-c4b84233bf88","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to cer tain conditions. A Call Right that is not","page_number":99,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"b31323a3-06bb-4a4a-aaf8-71d184bdce97","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":"08c8d44f-7f8d-4709-a574-de2e127328a8","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":"50954091-6d5f-4923-970f-1bc5260c7f68","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":99,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"ee29c09f-5be6-40c5-a3e3-6c8d22efb9d3","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":99,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"89a2fb1b-c88a-4550-bb0c-a90b5ecb08fe","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":"dc002bbc-1961-4145-b58f-9e134ebfd115","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":"007a4fb6-fc85-4d16-9640-0b8191130056","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":"6c2f35ea-378b-472f-ad33-8b4e819e4357","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":"e2f67015-410b-4aa3-91b7-24d58ac497e9","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a par ticular investment or por tion of its por tfolio or to","page_number":99,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"5aca5cf3-35fb-4295-b524-aebcdf5bcece","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":"f3f13806-ddca-483a-968f-e7d135878ed2","block_type":"box","text":"II-61","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"92afe427-1df5-4754-a95a-6c09dd74aceb","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4eee2c18-c61d-4374-bfc9-9d12622fb55f","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":"7913d1a9-ea89-45c9-bc2a-9d9fb868a272","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":"66c5c670-566b-4dfc-b884-3150ac01731e","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":"e25071d7-e291-4169-af7f-37450ebe6322","block_type":"box","text":"i.e.","page_number":100,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"5bc0cf13-3ec3-442d-b02e-992495265f9a","block_type":"box","text":", wide differences between shor t-term and long-term interest","page_number":100,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"d6dea023-d9db-457a-9364-90036926c88d","block_type":"box","text":"rates).","page_number":100,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"ce7a2df8-8419-45dc-8cad-b423b6467f49","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":"c1a7e81e-6274-4e34-b3b4-e27b596ad625","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (","page_number":100,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"8d39a15a-1387-4a8e-9636-63b162c12d73","block_type":"box","text":"e.g.","page_number":100,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"e06df912-cd58-4c8c-b291-a85bc183ca26","block_type":"box","text":", an exchange of fixed rate payments for","page_number":100,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"a9ebcf62-c1c4-4818-92e3-0a16a95ef50c","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":"15c175c3-0d5e-446c-b0cb-455eec64b9a5","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":"552e0115-f97e-4a31-afe0-ca0aef60de3d","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":"d8ee135d-96ad-4464-9615-6a058edf8280","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":"b5961964-a88f-4534-85e6-4ddab1935a80","block_type":"box","text":"with the same attributes as the swap (","page_number":100,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"86c3a3a4-be27-4d9d-8242-9456ee5ab0e2","block_type":"box","text":"e.g.","page_number":100,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"126617b5-86c3-4fe7-b823-7bccc82519ca","block_type":"box","text":", coupon, maturity, call feature).","page_number":100,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"5a8d00a9-6197-4c18-b780-f2643c2b90ca","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":"db2ded70-1f93-4166-bb64-f0355c8a4c4f","block_type":"box","text":"to lock in a specified municipal interest rate for a por tion of its por tfolio to preserve a return on a par ticular","page_number":100,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"ee58aa8a-5eeb-4262-9948-d49b7e54cfc5","block_type":"box","text":"investment or a por tion of its por tfolio as a duration management technique or to protect against any increase in the","page_number":100,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"2edd8936-89b2-4432-b352-03903fee55c5","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":"0fabccf3-9514-4d9c-a7a6-0abc0c192f49","block_type":"box","text":"shor t position, allowing the Fund to select the most attractive par t of the yield curve. An MMD Swap is a contract","page_number":100,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"7f98009d-e748-4a94-a502-4bbd394290c3","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the par ties agree to make payments to each other on","page_number":100,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"ecb7a12f-84e5-4cd7-bdca-b28ee05bcfe0","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":"aeaaffc6-d5ba-4caa-9800-e50f85b5b7f3","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":"93afa32a-5f45-4f69-9bd6-2be60e41f055","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":"ca0c14a4-4f73-4a66-ba7c-33231650fa71","block_type":"box","text":"counterpar ty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":100,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"bac65a0b-e52a-4e08-a985-3f3941df3865","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":"f06c74a0-2531-4107-a685-37ae27140e92","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterpar ty equal to the actual level","page_number":100,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"3cf7e668-d70a-432c-a7bc-38d33d77681c","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":"a0d784ac-9221-45af-8552-97f6900fa5f8","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":"02ff025e-a1bd-4956-8398-d81428ed6f5d","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterpar ty in","page_number":100,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"0da4f72f-1978-41a7-a4b8-04a4c74fe647","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":100,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"235d0871-23a9-4493-a6a1-79ad76eee688","block_type":"box","text":"Insured Municipal Bonds.","page_number":100,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"e49a125e-c4ca-45a0-a84b-1540e176757d","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":"1e09fd89-8b84-402c-bb84-3dad69a2a547","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":"790cbc05-9067-4da0-ab40-9a4070e8dc70","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":"9c640f09-a0c5-4704-b2ad-e9714ec6e127","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":"1f592a94-187d-47de-bcc9-03fe491e8344","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be cer tain that any","page_number":100,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"b6dc8a00-5bde-4fe2-b403-aaad6ce460fb","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":"641692ba-01fe-4eb5-a0f3-e76ce36fb756","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":"1e790823-fd94-402e-8497-baf5d72d6ffe","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":"9f5f5979-9a02-442c-b4e8-8da09b46559c","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":"65f64cf1-0ca1-4190-89e9-5be0af8fabc6","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":"a1521511-d624-4fb7-b0bc-f233b308b710","block_type":"box","text":"bond could drop.","page_number":100,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"7de67332-ae70-473a-8fde-ef55e49defec","block_type":"box","text":"Build America Bonds.","page_number":100,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"c7db3fb6-2201-45e8-90da-77e1a8c0a352","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":"b17265b9-7882-435d-a801-c4551b384ba6","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":"78af2f9a-8dae-43fa-a781-04b48a0e4d96","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":"4f6ae383-20f0-4046-ae30-5b5077cccbb0","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":"485effa4-64a9-4399-ba0f-d84e580aa059","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":"e6ab6b1c-3f48-472e-ab63-0ad37b322022","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":"3313f093-7eb9-4121-afe3-e96916fba35e","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":"229a3d48-0254-4a57-a632-3b01fd3a77db","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":"dcb28fb2-c0d3-4ca9-82e3-9ae6447175d9","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":"36179fd0-4eea-42d0-821a-d4f0b9757a82","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":100,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"a2e0dde4-057d-466f-a9a4-89ed5681f6e0","block_type":"box","text":"bonds issued before January 1, 2011) or cer tain other specified bonds. If the Fund were to so elect, a shareholder","page_number":100,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"3beb191a-df6f-4e39-a848-b595185ed383","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":"5f377dd7-2344-481f-b8dd-525078b2a802","block_type":"box","text":"propor tionate 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":"95a57c54-49f1-4afa-b457-a9b0f6bc80ec","block_type":"box","text":"Cer tain 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":"454c67c6-e9e0-4e83-8429-b69fced719f7","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":100,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"ca260eaf-0d43-4ed4-80b8-9d3eaeb090f3","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":100,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"61919427-2422-45d7-8b6e-fda2610fe379","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":100,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"ad1f6ce6-23fa-400b-8bca-ec5ecdc55b93","block_type":"box","text":"par tnership 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":"681dde9c-98ba-4966-b305-5e559b077e16","block_type":"box","text":"II-62","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"139e5772-add4-4b8e-a3d1-9c3974e22e42","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"06a0b3b3-296a-4ba0-947d-e3d6deb6b5e6","block_type":"box","text":"of the structures used by cer tain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":101,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"4a7e92e9-11ec-4a50-af2e-eb7c16e3c237","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":"6b1a80f6-92e9-49cc-a4ea-d99627e041fa","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":"057b49d2-7f64-450d-bfc4-208ab9baaf2a","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":101,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"50cb3978-6643-454b-b816-64411bb06c83","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":"9a12d234-e3c5-4612-8535-f38afc254ebc","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":"d3aeac1d-3f53-4ea5-b991-04c5fc4660ce","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":"c22593ba-11b9-4fb3-8e67-71e048e29a42","block_type":"box","text":"their face value to the sponsor (","page_number":101,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"33682fc4-e78a-44ec-b2d9-ef283772e9c3","block_type":"box","text":"e.g.","page_number":101,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"70210ffe-7111-4174-8ab3-6c517b474256","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":"ec66aa4d-f4e0-4824-9fa6-50a8410dd059","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":"e7b8c03b-1478-4f41-a321-a5ad21d509a0","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":"3766a3ab-41f1-40b8-9eee-176d8e329e53","block_type":"box","text":"A par ticipation interest gives the Fund an undivided interest in a Municipal Bond in the propor tion the Fund’s","page_number":101,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"85098bc4-a79a-40ac-b669-cb8ce32303e9","block_type":"box","text":"par ticipation 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":"09083bd2-d76c-4391-a68b-12ecdd8956d0","block_type":"box","text":"feature for all or any par t of the full principal amount of the par ticipation interest, plus accrued interest. Trusts and","page_number":101,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"8c244b28-1cc1-4cdc-90a3-85560f4a3b27","block_type":"box","text":"par tnerships are typically used to conver t long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":101,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"0906a8aa-a4f4-4ebb-98a9-df1c5d17c499","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":101,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"bc60b550-1d54-4ebb-917c-72a4a149659b","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":101,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"a81769e2-ba35-41a9-9f1f-04000af652d2","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":"7dd0b8a0-1f53-47e3-8cbe-d0df64c89c45","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of par ticipation interests","page_number":101,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"fc7249d1-c21b-406a-bb3d-c11cfcff9630","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":"061b49b0-cbef-4116-90da-13125cf5eed4","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":"ef14edde-5a13-4717-9b93-3dbe8b39b8cc","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":"f86b6885-3b21-4e41-b201-6fd73f5b933a","block_type":"box","text":"such opinions.","page_number":101,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"e14602ba-f149-4ea6-94ca-90d73d72b711","block_type":"box","text":"Operational and Technology Risks.","page_number":101,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"ca20014e-6139-4c81-8817-5b99a43238e6","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":"fbc62313-4617-4849-baa0-c5441fa875e0","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":"abb7e5e1-5d1d-4009-8d65-dc92066b3821","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":101,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"83e2160e-9626-4533-bf79-e2ca39181488","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":"d91baffe-1510-4ac7-9540-c7afab01c421","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":"cf103b1e-8757-4f96-a79a-dc55b5c9502f","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":"c6a2cd0c-0d78-4096-a325-34c09f821876","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":101,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"d65052a5-e8d6-463b-b3bd-3eba13b09e87","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":"c2570356-6109-4ea1-9ca8-b70316a4cdfa","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":"5263ed7b-86bf-4308-80a7-e0e75194ec8c","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":"02f84ec0-ea39-4034-8ddd-20079fb0a438","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":"b3036798-7400-4252-acfc-8953b93d0e9c","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":"173c48f0-5f6b-412d-9327-2f053d3ede48","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":"2be3985a-e409-4cd0-85f4-8e4d86289f91","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":"47190866-16b7-4f0c-83ba-bb9c90149532","block_type":"box","text":"par ticularly 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":"71b4885b-4367-4d75-a043-63ad0eb5414c","block_type":"box","text":"any of the following: financial losses; inter ference with the Fund’s ability to calculate its NAV; disclosure of","page_number":101,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"cb481d11-f70b-4315-a9c8-1c29ac77471d","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":"71d2d89d-bfbc-44c3-9ca2-094be04fb495","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":"95efe968-b894-4e87-b872-4cc39d8ef1c2","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":"66dc82db-80e2-416c-9a38-83a0ebd17f85","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":101,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"fb39b042-d9fb-4397-a1d2-32c53f6fba23","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":"2df89a43-a30d-4535-a7cd-1c77c1096e59","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":"4233e1ef-675e-4856-9046-82c74b3be824","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":"3f7756f9-0e92-4c29-973a-74b6edcf2a6b","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":"3e4efc1b-bbdf-4b56-be32-2aabce90a34a","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":"1dd3fded-4801-49e7-bb21-c1dbc9019ba1","block_type":"box","text":"to the Fund and its por tfolio investments. These advancements could harm the Fund and its por tfolio investments by","page_number":101,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"006c037d-cf11-4139-845d-3329187b90ff","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":101,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"bb86286f-a845-4bc5-9921-4e7884c1d4ca","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":101,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"f1bb73e5-b326-4764-a6cb-f0d997626a32","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":"b01f39b4-222f-46e8-ac7d-c2c87819d124","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":"6ee19569-9079-457d-bd21-bdc35dcede7a","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":"44088cf8-ec8d-4f71-be23-e4ae85739d75","block_type":"box","text":"infrastructure assets.","page_number":101,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"dee95998-0c0d-43dd-9f59-0031b4c60927","block_type":"box","text":"II-63","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3b83041d-737c-458c-a12e-b4e139524010","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d16ac53b-8fb0-4853-9372-7b5b122ca917","block_type":"box","text":"The Fund and its por tfolio investments could be exposed to the risks of AI technology if third-par ty service","page_number":102,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"aff66b3b-8856-4cf2-9a98-228fd5d81daa","block_type":"box","text":"providers or any counterpar ties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":102,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"a1eede56-cd45-4ff6-96e5-d6372a083781","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-par ty products","page_number":102,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"498b3f6a-c72f-4593-b12d-595d586596ae","block_type":"box","text":"or services.","page_number":102,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"894c4402-59a3-439f-a318-496832f387d7","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":"66b21194-7139-4a42-8f42-705d08e5faed","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":"f0105a76-3268-421e-8c8c-894af863a5b5","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":102,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"0efa65f4-5913-4207-b3fb-1595e1daad80","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":"b505be3a-f95e-4c90-a08a-88e7a5278b5b","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":"e231f33d-db8d-4807-83d3-6a1f3d43e7d1","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Cer tain data in such models will inevitably","page_number":102,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"0e24aa4b-f93f-45c0-a8d0-bc9c978989c0","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":"edbe863b-f104-470a-9ffc-dd6a87792ed9","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":"376b4197-28b8-4fcc-aa17-c3c192a464d7","block_type":"box","text":"incomplete, erroneous, distor ted, or misleading. Fur ther, AI tools may lack transparency as to how data is utilized","page_number":102,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"4468665b-5ca6-40fe-8af8-c662e6c82b29","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":"172866b1-a26d-4b3c-b168-4814e6b70fd0","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its por tfolio investments are exposed to the risks of","page_number":102,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"0de47c8b-2349-4315-9fbc-5920d05911f3","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":"f73e3755-6cc3-4697-a24d-b776c765f6f4","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":102,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"863a11e4-347d-420a-9c50-f7466d7f5d03","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":102,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"d5855c19-8034-4cfe-aca6-b51df1a5e216","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":102,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"25bd84aa-3c8b-448c-a340-cb7d71b02ee5","block_type":"box","text":"ar tificial 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":"8d3673bc-9971-4b60-af07-2ee5a7063363","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":"a23b7f62-014c-4235-9021-063cb724c40c","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Ar tificial","page_number":102,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"da563892-4740-442f-a6d5-39118a161869","block_type":"box","text":"Intelligence Act, which applies to cer tain AI technology and the data used to train, test, and deploy them, which may","page_number":102,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"166b91a0-4419-4c8e-8bab-5ec61ae358f8","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":"4f8d910e-4ec3-498c-b92a-56653a6f2e0a","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":102,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"f73ebf96-ba23-41e8-a0ad-157040c38cfb","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":"8915b667-1072-44f1-a0f0-5569c0f9e161","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":"405f57af-293b-453e-af10-e4291194f0fa","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":"8aaba77c-28a9-4d56-b920-50f5d29d4633","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":"5ee56fad-6d6e-4009-ae02-fc543f7304d9","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":"d4d374e1-ec35-456e-a983-9322f50eddcc","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":"8b99860f-0d71-47b3-b724-6d648ac47687","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":"3969487d-3003-497d-9701-35734c4cad6b","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":"34d98bb1-1c4e-45bf-ada8-8987f2cc976e","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":"2062848d-3289-46f1-a2ff-20f01a44b7d6","block_type":"box","text":"plans and systems, including the possibility that cer tain risks that may affect the Fund have not been identified or","page_number":102,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"2fee1665-6463-46dc-83ff-9ac20c55b7f4","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":"06d5400a-e05c-438b-a03f-10bea34d3dfc","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":"0069bd4b-9f99-4d49-908e-74b14b8c5f6f","block_type":"box","text":"and remediation effor ts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":102,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"300993d8-5679-470c-9471-89895ebc470c","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":"d22546a1-6094-4c04-99bb-5f8235075b08","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":102,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"d147dddd-74ef-4123-9022-1d8cca6e8312","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":"2e1e32f7-a415-48c9-ad97-6a93c1565bad","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":"6b07835e-9cb7-464a-991a-b8417cb6ddde","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":"57a45393-a85b-44b7-82d2-7405e49249b8","block_type":"box","text":"resources to monitor and implement required changes.","page_number":102,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"8b503b10-7e6a-4975-ae8e-7b751b086956","block_type":"box","text":"Participation Notes.","page_number":102,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"5909c9d5-ce31-44f8-8f2d-752b81a578cc","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":102,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"d7b91906-b6df-432b-b585-103c54646bf7","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":"18b89f6e-bcf6-4eec-af5d-0832819bac88","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":102,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"44bfc030-bcfd-43fb-ac36-ee1869b5bf98","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":"dc94fe24-a644-4c8b-88bb-5459f266fead","block_type":"box","text":"The Fund is subject to counterpar ty risk associated with each issuer. Investment in a par ticipation note is not","page_number":102,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"b77bb283-f9e6-4ee8-a0dd-c96980c2e90d","block_type":"box","text":"the same as investment in the constituent shares of the company. A par ticipation note represents only an obligation","page_number":102,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"de8c0731-4c33-4141-827c-90cb72decec9","block_type":"box","text":"of the issuer to provide the Fund the economic per formance equivalent to holding shares of an underlying security. A","page_number":102,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"41b0e08a-754c-4c93-87a2-337360e0ab33","block_type":"box","text":"par ticipation 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":"c39ff0ea-4749-47bf-926e-9e26d85347ac","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":"08bd9fd8-d78d-4b14-a6ee-2af135dbdb68","block_type":"box","text":"par ticipation 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":"ff1cd794-ee6b-4ccf-b6ca-7453bc805a2a","block_type":"box","text":"II-64","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cca1b7f4-8128-4c80-b7bc-cca623c53ef0","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f2473d27-f995-4d45-91cc-cfd0aaf8210b","block_type":"box","text":"a par ticipation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":103,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"d61a6382-5832-471a-83ab-d48d70509482","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the par ticipation note if the issuer fails to per form its","page_number":103,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"6f19d8d7-f410-4f5b-8811-d6e69abcdaa0","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":103,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"4136b53d-dfa9-4fc4-ba94-e4b38b99484b","block_type":"box","text":"The counterpar ty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":103,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"d98b8ce2-9ffd-47fc-a19a-1286a12629e9","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":"7650c6f1-b3bc-40ef-9d0a-bd24824a2070","block_type":"box","text":"par ticipation note expires or a Fund exercises the par ticipation note and closes its position, the Fund receives a","page_number":103,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"9413db2a-1d92-4639-98b1-03105bda31d2","block_type":"box","text":"payment that is based upon the then-current value of the underlying security conver ted into U.S. dollars (less","page_number":103,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"a63e2ddc-e88d-4aee-b511-87b7712e0229","block_type":"box","text":"transaction costs). The price, per formance and liquidity of a par ticipation note are all linked directly to the underlying","page_number":103,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"1cc08d76-a63a-4895-a39e-746a100b512c","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a par ticipation note generally is dependent on the liquidity in the local","page_number":103,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"cea5bc9f-c99f-475f-a53b-f15a70cc7d87","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":103,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"a66d067f-6611-4cab-98fd-645eda586e9b","block_type":"box","text":"Portfolio Turnover Rates.","page_number":103,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"63d59df3-e05f-43d7-b96b-44545cd9eb47","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":103,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"9cccb45d-b1c0-4537-9ff3-65216e3416e4","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":103,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"d1c930be-2236-44cb-a297-9c065944fb64","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":"5e05479a-6326-43c1-b6c2-b511ab5bd160","block_type":"box","text":"substantial number of por tfolio transactions. With respect to these Funds, the rate of por tfolio turnover will be a","page_number":103,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"5e8f7d7d-b2a6-41a5-9a77-a457476e1f77","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":"1bdbce8b-585f-4baf-9314-0fb96bde3152","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Por tfolio turnover may vary","page_number":103,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"58784952-45c7-4677-8962-3ce8bb02bbef","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (","page_number":103,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"dccd3baf-7925-4ec4-bfe1-a46a200337b1","block_type":"box","text":"i.e.","page_number":103,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"6b05e67c-1112-4a80-a2c6-ab83774cade6","block_type":"box","text":", 100% or more) may result in","page_number":103,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"9bcf9fb5-1c8c-4ffb-b0fa-7f8ffcd9e10c","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":"20e3f2d8-fa97-4c86-8a37-e9b2a812788a","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":"10517c6c-b4c6-4232-b3f2-eb74b1be63ab","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be shor t-term capital","page_number":103,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"ab8a0dce-f629-489f-89f5-5f7c59838534","block_type":"box","text":"gain or loss. These effects of higher than normal por tfolio turnover may adversely affect a Fund’s per formance.","page_number":103,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"699df6e3-ce40-44ca-afec-9be78dc5b11b","block_type":"box","text":"Preferred Stock.","page_number":103,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"bcf1c930-1dc9-4d3e-a590-2791f438e24d","block_type":"box","text":"Cer tain 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":"86cc01d6-15c9-4984-8ce9-8101093f1ad3","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":"1d2ba282-1072-43f7-bedc-824c33f12d75","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":"f52e543d-0f1e-47cd-ad51-6ba2d3db48d8","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":103,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"ca221893-af66-462f-8b0a-7570ce668b5d","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":"f5f77017-dce8-4942-99dd-dc1d7e778372","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":"4bfdc582-e180-4129-af61-0d462750f091","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":"857e53f2-103d-49bc-a986-ca7067071d1c","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":"cd1568ab-a841-4556-989e-039f81e905f2","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":"33ba062e-2d9f-488c-95b1-15ed377b5093","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":103,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"ac7493f7-d8ba-44d6-9341-11701220e245","block_type":"box","text":"Cer tain 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":"212f008f-997e-48c5-a5e3-4804a3bef49b","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":"f77f9eba-6d46-408d-a6e4-cadc43ddece4","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":"44f8b26f-f365-4c73-9f0d-ef207235ffab","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":"0a2d292d-4077-4db5-8ef5-f7655f76f05d","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":"9d50105f-9ec1-446b-9c0b-126c4caa462c","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":"2d605fe5-7839-4505-bb4f-5aff8d7886ba","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":"bf868682-0c17-4a28-a2a9-9ef405195bdb","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":103,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"47d498fb-fbb8-468a-8467-436b2f20db51","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":"6c767c23-e6d4-403c-9210-e00b2a521369","block_type":"box","text":"Trust Preferred Securities.","page_number":103,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"b44dffe3-3e8c-4d7c-9bdb-5d90eb4ad597","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":103,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"1e614068-03b0-4367-800e-a5e03338ba17","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":"d6e50d2a-f02e-4beb-b440-b926a63146eb","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":"69362eb1-8aaa-47a8-8561-53c6f3977d2c","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":"163428dd-cec0-4f9c-bfca-7b8765c3b9bb","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":"b0a1469c-9426-49be-9a27-02f6608b8ef5","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":"5c7eacb7-b9ec-46bb-ac26-efd635c62208","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":"760fd6fc-8534-4f90-99e7-9fb2faaba61d","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":"e3a16b21-4c61-4bbd-af74-39e5e6e75482","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":"5bf362cd-59a9-4762-a24e-47ab7ed8e81a","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":103,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"761aed8f-ca2a-4d45-9341-3eac7706b5ae","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":"a71ec058-645f-438d-8a4c-de51d2625a3b","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":"211cffdb-cf65-4a7f-a11a-527150985664","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":"6701b136-d1d1-4bc1-b8ce-6d67fe0d6cd1","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":"5b23f3da-eb2d-473e-9393-e7a7fee7fdff","block_type":"box","text":"®","page_number":103,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"a0653335-4e50-4cc6-84f2-769d7a7d198f","block_type":"box","text":"”); monthly","page_number":103,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"99b6a06b-8f58-4f6b-bd56-da3f30240c7c","block_type":"box","text":"income preferred securities (“MIPS","page_number":103,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"dc2b95fe-a41d-4397-a1ec-8330612dec9a","block_type":"box","text":"®","page_number":103,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"7f7e7bde-728f-4551-9c91-9dac44447089","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":103,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"03053c72-574d-43c2-89f4-7ecaa3f38b72","block_type":"box","text":"®","page_number":103,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"1787727f-e755-46d7-9e5d-adc5895a4129","block_type":"box","text":"” ); quar terly income debt securities","page_number":103,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"82fb6408-22e2-4436-a20f-70a810654bbd","block_type":"box","text":"II-65","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"62a11720-ff14-4b8a-9077-78dd7951de7e","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"85cc0123-efd6-4cd4-ba03-067e91d895bd","block_type":"box","text":"(“QUIDS","page_number":104,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"26538b02-b145-43c8-89d7-3d771404cdb0","block_type":"box","text":"®","page_number":104,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"65a3f6ec-e97e-4458-a7be-67338b56e87b","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":104,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"da74bed2-16a5-425a-bc58-231bf01badf0","block_type":"box","text":"SM","page_number":104,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"580dca2d-7bda-4e73-b8d4-6eba8e65cc8a","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":104,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"de450a00-a85a-4622-8863-f20903341bf2","block_type":"box","text":"®","page_number":104,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"f59480c5-1326-42ed-a7ee-8920859985bb","block_type":"box","text":"”); public income","page_number":104,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"dce24bb5-9791-4068-81d0-742dcd3051dc","block_type":"box","text":"notes (“PINES","page_number":104,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"debf595e-5222-4859-ac97-fd266f5a30a6","block_type":"box","text":"®","page_number":104,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"c7d011cb-20a6-4c0e-8e29-ba5cfa5125d0","block_type":"box","text":"”); and other trust preferred securities.","page_number":104,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"769d6a29-a4a3-4948-936c-a642a50faa81","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":"dd4c6bef-384f-4b0e-9866-4e793c965952","block_type":"box","text":"In cer tain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":104,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"cc7747dd-2db6-420e-a0d4-13f9ebc0369c","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":"5847d806-ce7e-49c4-9675-b034006fd474","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":"40638808-04d9-4337-bec9-5e00c43d085b","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":"8baf72ed-44c0-4705-9b33-42982e74c8ad","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":"dbbc16e2-ade1-4d1c-b5ac-aa7b746f3a92","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":"bb42c6ac-a63a-4ad0-aefb-63ffa82c641b","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":"2405f4b6-be77-4fdb-9e2f-a8a0161bff8c","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":"1672ed19-2929-4654-989d-74bfd6d30d0e","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":"ae10023e-e305-480d-915e-77ffd4eaf866","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":"2df809bf-cd21-4591-9a14-c83005dddd84","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":"fe41a3ff-a905-42e6-83e5-2566098e8380","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":"7efb6534-2853-4fbe-96fa-f7660767919e","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":"5001acca-d7e8-4bc8-9640-daf5e1c273d3","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":"97b64cd5-5f52-426e-9215-86c3efff9110","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":"31780ecd-7e1f-486b-957b-24ae85eecd84","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":"6e6f4d27-d11b-49f4-8832-630469ee0858","block_type":"box","text":"debt securities.","page_number":104,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"7914fd2f-a591-4906-b1da-94a16681200c","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":104,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"9fd83469-2625-4cfd-88ef-1361e5864761","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":"c612b917-e402-4d6a-b2da-81b9f3938118","block_type":"box","text":"REITs. REITs possess cer tain 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":"64a66a63-6f3c-4892-a075-83893bb45d32","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":"2f8af1fa-0ff4-4943-b6dd-91fc0c871c32","block_type":"box","text":"geographic areas or in specific proper ty types,","page_number":104,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"36e8c755-01a0-4b4b-93c2-df7cb172b8dd","block_type":"box","text":"i.e.","page_number":104,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"c5eb972b-24ef-447b-be8f-a737386d1bfb","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":104,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"9d007bbc-c94a-4dfb-b2de-a73c1a7e01f9","block_type":"box","text":"buildings.","page_number":104,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"946a97df-e474-4e39-9819-44a2b2d71a6b","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":"ab215788-55a0-45e2-a3bd-2fc4d01a439c","block_type":"box","text":"propor tionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":104,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"9a0fee4d-c8d2-4b7c-bb34-a327db8aea0e","block_type":"box","text":"Mor tgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":104,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"48b45608-7f9e-41e4-8f56-b1296ff3c98c","block_type":"box","text":"proper ty, which derive most of their income from rents. Mor tgage REITs invest mostly in mor tgages on real estate,","page_number":104,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"6fe5df19-845f-4223-a21c-ac067ea2151c","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":104,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"224d732f-99c0-4648-8e3a-f6795463967a","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":104,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"954cdfb7-3f39-4544-8e99-3becbd80006f","block_type":"box","text":"Investing in REITs involves cer tain unique risks in addition to those risks associated with investing in the real","page_number":104,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"d1a4d284-5f14-4838-879d-632a213942ba","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":"8a79bb73-59cf-4514-a3b3-84ec16cdfdf8","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":"07361e1d-59f5-4a47-a104-5b55f8cd159f","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":"2abe847e-1b00-4c59-b5b2-a9e24a5668bf","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":104,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"05124977-8df9-4f07-8a93-5c9331bd8324","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":"4afc05e9-7ad7-45c8-b534-9c14f97e0647","block_type":"box","text":"from new proper ties, 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":"1c60a69d-1afb-4724-af93-c34c5c232b6a","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":"defc638c-922b-44e1-a960-c425963bb4c4","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":"832150f5-e1dd-40ea-aade-a161232e8cda","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":"c7de526d-01f7-4bbe-9a40-6debcc186c05","block_type":"box","text":"REIT are concentrated geographically, by proper ty type, or in cer tain other respects, these risks may be heightened.","page_number":104,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"d8c8dac5-323a-4399-94bf-c82658386e16","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":"bb9463b2-ceba-46a4-83ae-064a3ff6f137","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":"01bc2b61-5853-48a5-b1e4-46b3445c6f27","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":"b739107f-3193-4ba2-807b-4f0b5d9d2a07","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s por tfolio which is","page_number":104,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"37f6c68a-c016-4a24-867c-a2f9fe6348ce","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":"2237fb7b-c637-462b-a5d0-0ceda6bd2b9f","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":"b4331c18-9485-43a8-bb89-70ff2b1c9013","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":"0e95b62f-c240-4619-9b03-68dd95731963","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":104,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"02b227a7-3d38-4e8f-a5e3-63f5d1923154","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":"f9832a6a-0927-44a5-a9b3-90209507c59f","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":"2cd83b28-565e-4dea-90bf-d47126970d0b","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":"4e1c27a8-4595-4483-9e2b-faefd86b9a3c","block_type":"box","text":"REITs (especially mor tgage 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":"f018da9e-7004-4c99-8204-08e139c63d69","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":"985f4a08-1b9e-4015-b149-27a89cc0b4e6","block_type":"box","text":"II-66","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cdb6c65a-3f5e-40c8-b871-c5cb9ae3b5a4","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"653141bb-0002-47f4-8362-137db3fa06bb","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":"ac28716c-0117-4bc4-805d-d14ecfd4804c","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mor tgages","page_number":105,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"a658bb92-0a65-47c8-957d-93c1791edc4f","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":105,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"753679e6-3cab-4a37-b32e-02fa618a2b2e","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":105,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"efc7960b-79b8-4174-b075-1be7b36fbe42","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":105,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"acbe5b00-0430-4626-ab49-8eb3165b497b","block_type":"box","text":"Investing in cer tain 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":"a180be0c-c140-49ec-ac28-4ebef8d610cb","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":"1a5685dc-46cf-4199-825f-115e740202d6","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":"7988eb30-c316-4bb1-a604-434caf734e51","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":"8583d93e-398e-4e49-a72e-4bbfc46055eb","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":"2b7bf63f-36ea-4083-ab92-f5e9ee79a416","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":"8af0d595-cd07-4439-8586-c613a781171b","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":105,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"aa6dd7ed-7938-4e23-bcad-4c6f4a00e138","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":"d7787a32-5e6a-47de-b53a-f439adb4afa0","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":105,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"2207a6db-4ef8-4204-ad22-b9eb69996550","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":"98599d97-c5c9-4bc1-ba87-198206e2bfdb","block_type":"box","text":"markets generally or par ticular industries represented in the markets. The value of a security may decline due to","page_number":105,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"5d8a58a4-7a3a-4e4e-8c78-7d517d88a028","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":"3c0fe004-0e4e-4132-8315-25b5b1c10058","block_type":"box","text":"affect a par ticular industry or industries, or factors that affect a par ticular issuer or issuers, exchange, country,","page_number":105,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"4c9f1654-5173-4cf6-85aa-1996f8fb0e2b","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":"f769560f-c945-40da-9006-cac150adf98d","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":105,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"cee34117-6dca-4433-a8ff-e4a4373722f3","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":"eb89d665-7d1c-41df-9ffe-8cbb11945be3","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":"728fef8a-1f47-44d6-993c-4293b35ef372","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":"3d7858ba-e68f-4134-b9ff-2d53b91a1624","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":"a6a77793-2287-4ef3-a057-125bfd10c4a5","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":"eaeecdd6-8172-4e7b-b19f-6cf7be3d2835","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":"ff0130e1-7bec-4fd0-92e7-34a56ecbdbd3","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":"90861a0f-da47-4ffb-bb8c-3fb0aff703e8","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":105,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"6a8c4773-6ba8-4d5b-8930-71fe1e70e192","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is impor tant to","page_number":105,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"a5c27822-a263-40ab-972a-bc847b23628f","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":"64cd13b6-aef5-47d7-87d1-36acbbaac9d0","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":"007288ef-8173-429d-b319-8df71bcbcbf9","block_type":"box","text":"conditions.","page_number":105,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"fac25998-e142-4dc5-b30c-66d878ff7758","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":"968161db-acbf-4919-9244-853e0512f3fa","block_type":"box","text":"a par ticular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":105,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"89ffd3f2-eede-4d9f-8e0f-2478079159fa","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":"d667ae0f-91c7-4478-9fc6-984a792ec8ee","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":"bcbd3f94-ffea-4405-8fd8-1922a38b521a","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":"838bef9d-41e0-4094-a170-e8acdea944f9","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":"d0a3e879-c9a0-4688-8563-45b766022248","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":"e6e4cbf8-adf1-4c2d-98bd-d12268e185fa","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":"11c341ee-bc10-4c9a-9080-c232b2759758","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":"f3d9e1f6-3d71-4602-95e0-e8a2f9c31331","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":"9a8cd239-f9ae-4055-bc72-bbba535f7567","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":"1d9f4477-5a5c-4b5c-8014-c29f57476eec","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":"8df08f8f-013c-4521-897f-d6e8a66b5837","block_type":"box","text":"affected by such events.","page_number":105,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"7f8c19cc-362c-4e61-8ea5-2a63091c1d74","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":"86dee1ea-ac4c-461f-ab4b-072c44ca0db6","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":"a4aa10bb-e36d-477a-a9e8-9dc0ae726ddf","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":"0ac8863e-2c98-4bc6-8d15-eaf68acddf54","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":105,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"17b5905f-8dc3-4935-bf10-b2401edcf1c2","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":"ad289e28-220c-42b2-a883-e0991b14cfe1","block_type":"box","text":"that could create uncer tainty 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":"aec3e41f-e923-46b0-8d3d-0bea1cac63fe","block_type":"box","text":"investment per formance of the Fund. In par ticular, actions taken by the U.S. government in respect of international","page_number":105,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"2a3da1f3-27ee-4a4b-9c21-e1c52b7db10e","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":105,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"bc0478b0-a1ed-432f-94f0-f9b19e11e357","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":"40939ca6-98ae-4ebb-b32e-4aff7f128ef6","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":105,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"5fe12f21-19ad-40c4-a861-55e94b0e06a6","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":"2d9a6879-88cd-480b-a3a4-030ea662b7fa","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":"8a83a5b0-f14d-4601-8d97-223a316ae9bc","block_type":"box","text":"II-67","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d013ecd5-2803-4463-9f3c-65cb068f148c","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bb4485e9-75d5-4778-a578-f55dd8a20da9","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":"b910f560-b0be-453c-a0fb-53d2a4e52ddf","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":"6f458aa1-3ad3-4a93-976f-1a5a26342855","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":"8ec082f6-59f1-4545-8ccb-9256fbb52198","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":"e2e3f1fc-6a3a-4cb4-b4bd-0abe1d42e903","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":"0f9da7aa-a8f5-4a0b-bd7d-b0cff21d5eaf","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":"d7b7a7b2-3492-45c0-9e89-b9576aa1ac8d","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":"1ff3dc8c-97c2-4a86-b931-0710777ea2ab","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":"dfb0843c-cef2-48ad-88c4-b0fafe8e207c","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":"4e294b3e-3441-46af-bc31-dfdaed8ba590","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":"ebaca305-a06b-4cca-b24b-0fd99fa9194e","block_type":"box","text":"investments.","page_number":106,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"9abb3d74-a9a9-4f9f-86af-10e6c395c145","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":"62e97e27-d43b-4d2d-b4c0-cd0d97777918","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":"1008602c-8119-4c86-9972-096a22fa00c0","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":"19422324-5759-45d4-89dd-e0aaf3c26a7e","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":"8ce25385-97d8-492c-b97e-19cbe95456fb","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be shor t term or long term, and","page_number":106,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"fcd6c3c0-486e-4836-b19f-3da561f92d45","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":"36f97091-ce6c-45d7-a870-19cfbed3b4f8","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":106,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"c3d6bd78-ffb0-437e-91b6-a43dbeb7508d","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":"e96e99b7-990c-43c1-af29-03b11dafbb5d","block_type":"box","text":"Legal and Regulatory Risks.","page_number":106,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"4e49769c-c400-4b74-9eba-942beb28f6b2","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":106,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"9f5f3ff8-5d11-4bf2-ab47-cf4848faa687","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":"b60f7510-0d7f-4473-b9d0-0abcb26be150","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":"92bccd16-f729-4964-8687-17e311e217dc","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":"f6a9c5d8-47ba-42d5-9ac9-4a1480b5f28b","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":"651bd72f-14d4-41d1-9449-15991333e0f6","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":"cd78366c-9ca8-4be4-bfb5-fefd621dd58d","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":"37bc4bf0-2a23-426e-9cda-cda11cd5a068","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":"383a3a1f-9de4-492b-b02b-45023aa7ac47","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":"c89beb23-8e33-42ff-9903-d6846544a9e5","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":106,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"a75c19f1-3800-48e7-8833-179e61a43d5b","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":106,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"64229089-227c-4929-b102-863088c700d0","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":"e5f29b20-d60a-4e21-9637-7196e2414376","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":"f9194e62-8d9f-4365-abf2-3fd155a59245","block_type":"box","text":"international trade relations, cer tain 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":"485bc84e-2fe4-4013-841a-d174722465e0","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":"b0e31044-12fe-4021-bc3a-7a24a8d1a607","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":"b7d6dd8c-582d-4ba7-a2a9-4d2eca6e8070","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":"4a77114a-1d42-4716-900e-cd7f955ad768","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":"f1ba239b-f7dc-4e7c-a033-6c814ffc5017","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":"b0196563-79ac-4ec1-8f49-2156c7fda1f8","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":106,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"c779b5d2-8128-4021-87d2-75b7310e877a","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":"9c9f89b5-0fae-4c02-ac46-df8b21d85ac6","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":"6f852f72-9f33-4278-bd54-897a6c0cb549","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":"46795bb0-0191-4d08-b3b4-c1c71b747d18","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":"585a50ab-f73e-44ca-a094-12abf4e5e790","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall per formance.","page_number":106,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"d7b23372-b815-4126-865c-7f2dc25bdf5d","block_type":"box","text":"Geographic Risks","page_number":106,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"c9890709-be9f-4809-9a63-f489d2281ab2","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":"26078ef2-dbd6-4e51-bb93-19be4983420f","block_type":"box","text":"to, par ts of the world affected by natural disasters such as severe heat, ear thquakes, tornadoes, volcanic eruptions,","page_number":106,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"36d420a2-9e63-4d40-a4e7-809c53a7d2d9","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":"ca12d4d3-7ab8-43f0-bc6a-ac89a1d71ead","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":"7dba8b44-b8b0-4841-926e-690e9ac82c59","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":"b8ec5a74-3456-4f09-8adf-d850123710a0","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":"c8a9bbdb-362a-46f2-92fc-763fc21771ea","block_type":"box","text":"Fund.","page_number":106,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"efeccd19-e45d-4d61-a044-22051ba37e81","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":106,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"1be7beae-dacf-4f71-b04c-837b805705ca","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":"2ba86b51-b26a-4563-b1df-aba8d61cb65b","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":"6014e64a-5798-44d7-a4e4-e070cf85f959","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":"5125bcf7-5778-4c40-87c0-61181530d220","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":"a5c7f39f-c105-4796-97c2-2ec21ca2e6f6","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and cer tain derivative instruments)","page_number":106,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"6b4334c6-961a-43db-8715-296954fafa69","block_type":"box","text":"II-68","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d14e82b9-0f6c-45ed-93bf-7858c23f1a46","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"37866522-7eb4-468c-b50b-9d0d11247915","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":"bf1fd2bf-61c3-471f-a05f-ccd3be0e810e","block_type":"box","text":"imposed by a regulator or by counterpar ties or otherwise may adversely affect a Fund’s per formance and/or net","page_number":107,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"57ecc75d-499e-4e12-9b36-bda3f9083898","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":"da423039-ede3-4492-be57-04e7a03379f5","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":"3c3fb1c5-0be3-4ec9-a147-57c809d1ca3a","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mor tgage-related securities, interest rate swaps and other","page_number":107,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"89ddb83a-3665-4939-b8a6-b4e1634d2991","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":"cce07daf-f572-4afd-9558-3027577ec86b","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":"d3ce6128-8323-468f-ae30-55d535ae98c7","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":"ec8deea2-975e-49ea-a2b5-a7c6f98db7e0","block_type":"box","text":"transition away from LIBOR led by regulators and market par ticipants as a result of benchmark reforms, LIBOR was","page_number":107,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"3a06267c-40be-4044-bf35-10a1c03aad1a","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":"b4422dcc-247c-495b-8814-5823cff9602b","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":"d71a0d81-0dec-49a7-bfb3-688fdcdca6bb","block_type":"box","text":"e.g.","page_number":107,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"bd422db6-d657-4a59-aad8-5aa5be358b1b","block_type":"box","text":", SOFR for","page_number":107,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"d95a030e-b4bd-4020-a133-483bce7d1b14","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":"7fd1e4fb-e61c-4431-bf3b-f29735d0652b","block_type":"box","text":"associated with the transition may remain that may impact markets or par ticular investments and, as such, the full","page_number":107,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"bc42e776-d7b7-4c0d-b678-2fce9f9f37f8","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":"4d5a8ff7-25d8-467c-aa71-0912419d9109","block_type":"box","text":"determined.","page_number":107,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"538515a8-4221-4763-9131-fe50a6eb10f3","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":"9789a957-f3f2-4bb7-9a4b-a099cab35195","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":"4b5f2d20-c558-4a0e-8ee4-f7f2d72e9dab","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":"f786b326-4733-4c51-8e9f-efb43ba4a376","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":"45742ebe-59b6-4bb8-b289-2aa30f929158","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different shor t-term","page_number":107,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"81b047db-2acf-4453-939f-e799c8cd304b","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":"ec91493d-2119-464d-bb0f-d8e0e498629c","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in cer tain respects, to bank credit risk and to term interest rate risk.","page_number":107,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"79dbf957-6314-44c4-9089-ba0e3d746283","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":"5dba40a1-7071-476b-bfc0-d04cbe7efd05","block_type":"box","text":"largely insensitive to credit-risk considerations and to shor t-term interest rate risks. SOFR is a transaction-based rate,","page_number":107,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"a081d56b-510a-4a46-aab4-bef3d862f39e","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during cer tain","page_number":107,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"994f0cf1-9509-42ff-850a-3e9d06dface1","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will per form","page_number":107,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"8fc27872-7e37-4614-b818-c81512241b0f","block_type":"box","text":"in the same or similar way as LIBOR would have per formed at any time, and there is no assurance that SOFR-based","page_number":107,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"f8c127f7-ef10-4e7b-8899-aa8e0bf17290","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":"dc3f587f-591b-4791-8a43-506cd54e446a","block_type":"box","text":"2018. The future per formance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":107,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"a7e9d108-6ae0-4c05-b3cd-65dcb96b0518","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":"d66a7691-a96c-4552-9956-a72690594a2b","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":"5207a56f-7997-4ee5-b12c-b879080703e5","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":"5af752d9-1bbe-4b2e-b488-f8203a3bac11","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":"cb2940d1-2b90-4d99-a7fd-456d2fea4b72","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":"756e0014-922c-40de-8986-941045870df3","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":"e28eede9-6286-4e92-b80d-b79bad6764be","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":107,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"5c30c980-141d-47ce-9b82-df99691083e3","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":"3ec105d9-0b93-46d3-ae99-a43d268da8e5","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":"a21ae8cc-627f-465f-8f6e-c5f80da4dfce","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":107,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"ccca4b01-f975-4094-b65d-337573e38585","block_type":"box","text":"in the future, with the result that relevant benchmarks may per form differently than in the past, the use of","page_number":107,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"3f3572a6-71c2-4ce3-9f51-75eef5d4efff","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":107,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"a6528619-8388-49a0-8310-067b865ea1ba","block_type":"box","text":"cer tain 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":"89d7da9f-a527-4660-81ba-97b50b0f580b","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":"a464f33a-c32c-4993-a784-6a914858b58b","block_type":"box","text":"consequences which cannot be predicted.","page_number":107,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"61118329-272b-4bb6-8857-90033ac64d77","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":107,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"2b3c68d6-955e-4dc5-ab22-65752bf53857","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":107,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"47e166f7-779c-4b47-819f-7ec6bae2c20e","block_type":"box","text":"sale contracts, the other par ty agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":107,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"1806901a-e6e1-49f5-b960-6f14763d986f","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":"294b397a-e054-49f5-84b4-adabe87040bf","block_type":"box","text":"term of the agreement.","page_number":107,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"a4119836-14b3-47ba-8866-b408be7df4e3","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":"82a92bf9-b0ac-43ec-96be-c24836e8b142","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":"bcff47c4-990a-4323-b278-89c5e53752c0","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":"ebed47c3-53bb-4758-a7b5-205dc9954529","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":"3a218bb8-f46e-4f8a-8535-b1dfc88ce616","block_type":"box","text":"accrued interest. A Fund may enter into “tri-par ty” repurchase agreements. In “tri-par ty” repurchase agreements, an","page_number":107,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"6249a75e-6716-407c-876d-0dd78556fa9b","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":107,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"389c03de-000d-433f-9637-ee3ed3dce1df","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":"58576545-9164-4a4a-b0fe-5f1c1d2b2ae1","block_type":"box","text":"II-69","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"38854e13-4f9c-4124-9ce8-628487c9e8d1","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"562259d6-f21c-41e6-98e9-7fce7caec9e6","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":"e4646c11-2f86-4a3a-8dde-450603cb5cd4","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":"9a715c30-c943-4884-af48-bae5fc7f1680","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":"efa87057-0a3d-4dff-8f46-d99f6dd7c5ce","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":"ff3f75ff-8794-40e5-99d5-6973cba550f0","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":"489fe0b3-d291-4278-a373-7f33baea6db0","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":"91433366-9212-4f18-afc1-84c5ebb5781b","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":"ed20620c-97f9-4184-b22d-e694e55677de","block_type":"box","text":"Both types of agreement usually cover shor t periods, such as less than one week, although they may have","page_number":108,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"ffea2f52-666d-4229-a91f-ddc7d916c051","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":"ffae8b9d-173a-4fda-b89e-848883fc6d5f","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":"2b6bc8bb-85e7-4b90-9259-f237fced8ac8","block_type":"box","text":"sub-adviser will monitor the creditwor thiness of the seller, and a Fund will require the seller to provide additional","page_number":108,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"47d51921-bc05-4cb0-8638-c3c751fe3c30","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":"2cae677d-ab40-49f2-9f0c-45fc4a350ead","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":"53446806-438e-4475-b1ef-3c740d8fd5d6","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":"98d6e4fd-06f8-4f5d-913d-4338d936ade3","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":108,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"a737922e-1f64-4302-8b0c-e652c2bba5b3","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":"c8c60c88-6953-497d-8ba9-5c0cad32e202","block_type":"box","text":"or by another authorized securities depository.","page_number":108,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"e86a4c2f-f541-4d10-9707-73b9204d93a1","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":"2207fb96-98b9-4df3-bd0d-c7da78f5b928","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":"51d8e792-0e9f-4082-a882-4f5ef4a21c45","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":"cdd1db78-8be3-4e63-916c-c853d1477bea","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":"58cb08b8-2d0a-4e49-9c25-5ab6980ea56a","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":"cff4bb0d-36bb-40ec-8255-12343fc7ac8b","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":"580e5a0e-7233-4165-ac17-0ea5435d6dc2","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":"9056d19a-db8d-41fc-aedf-d8240de9e2d7","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":"5251fa3e-b129-4c66-874e-680af9ee4b83","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":"4a34544c-78c1-40c0-88af-39f99e694ccd","block_type":"box","text":"the repurchase price.","page_number":108,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"9dbcf859-406a-4c4e-9616-20ccd3c9b313","block_type":"box","text":"In any repurchase transaction to which a Fund is a par ty, collateral for a repurchase agreement may include cash","page_number":108,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"c84f055b-b4db-4245-bb7a-83dacf8c49ae","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For cer tain Funds, however,","page_number":108,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"8f5e99c3-24af-401f-ba90-b1d8addf1740","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":"cb0727c3-f2de-408c-946c-6865fcc79369","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":"77b1c4e7-d490-428e-a826-b06c03285121","block_type":"box","text":"strategies without the repurchase obligation.","page_number":108,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"621e72b5-cf50-477f-bff2-1725dff84c75","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":108,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"c56694ac-2951-496d-ad5e-87ed45cb3505","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":"7f95c5a9-2798-456a-904c-c360e9cc222e","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":108,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"88d9aaaf-1965-4bb5-97ce-17e0d8ca9527","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":108,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"752ab0a4-a1c1-496c-b665-037c5621355e","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterpar ty’s repurchase obligation, a Fund would retain the","page_number":108,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"9d587fb3-9262-46a4-bcbc-51c8eff95ab4","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (","page_number":108,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"005f8d90-d6cf-4316-b00a-c713cde01f49","block_type":"box","text":"i.e.","page_number":108,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"e4e18f98-c846-4267-8c82-47a70bae7b08","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":"2037c5ea-48cc-4fa8-88e1-c01318e62914","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":108,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"3f3da964-067a-42db-89b9-d00e8406e7eb","block_type":"box","text":"the amount of the shor tfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":108,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"fc87ac9c-cf0f-4c38-b7d8-883bcc63d1ca","block_type":"box","text":"and income involved in the transaction.","page_number":108,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"048f0ede-8f1b-4b7a-b242-d4fda268905d","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":108,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"825e66c8-c04c-4a05-9851-424735fdc705","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":108,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"f00c1595-b4d1-4671-b635-557faa45bad9","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements,","page_number":108,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"0f1472bc-cfa9-47e3-833f-d3b76c3dd3c3","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":108,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"729e92a9-5aee-4f69-93f6-28cabdd81f68","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":108,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"ac97f945-d88f-49f2-ab59-13e974b763c9","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":"d1c8a1ea-600d-471a-9385-ff5d659f2a1e","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":"c51627d7-05ff-4ebd-909b-16bd98c45bbc","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":"83c2699a-69da-4966-b511-9685228fd7d7","block_type":"box","text":"require cer tain 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":"9fec0563-1d1e-4967-87d5-38d5c6230ebd","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":"7fc97a8b-b39a-430d-9382-599822e7f682","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":"a3294e70-f44d-4a3c-b0c4-e1c53051e2b5","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":108,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"a5140efb-f75b-42f6-9c9f-a52c3b60f5bd","block_type":"box","text":"Restricted Securities.","page_number":108,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"72df6066-7901-4b55-93c0-0e3b780f139e","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":"e3f8c000-dde8-4454-ac0c-27ce3b19f6d7","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":"ec9b6c01-3706-4291-8375-cab4eca64344","block_type":"box","text":"II-70","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a44ca616-9741-40ad-8d1a-f384c976e73d","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9626c198-6a22-4583-8221-242eb8f2cde4","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":"1374bcc6-cd3f-46e7-bd14-d3748678064c","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":"fc7fa3a0-4319-4609-9db4-e62508071d5f","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":"9da915ab-3eae-4294-965b-5a498ad8fd0c","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":"c1e9dae2-568c-4aab-a15f-30b1cb1e3dfd","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":"0da4a0a3-3627-4b32-8621-620b81980884","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":"4fbd0a36-c1de-42db-b3fc-183debba13d7","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":"7273673b-c0b6-4291-ba65-1edd97e37db6","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":"c23eac1b-ba21-4d1a-87f8-c0cc01fd067f","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":"af1f3235-9bb8-4a51-a8a8-7cf57b2216b9","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on cer tain transactions,","page_number":109,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"0c39757b-d9b0-4235-b78c-aa3657384afa","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":"9e686572-216a-4b4b-bfab-5859a2ef662d","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":"bea8622b-cd00-407d-8502-17ae3099ea1b","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":"de37139c-cef1-4f1f-a3a6-b9d4fe987b46","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":"477b4e71-6a13-4bf2-9763-8a2af9946742","block_type":"box","text":"character of the issuer, which par ty (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":109,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"bde9a7a9-3a0b-4791-9937-0d4231e54e30","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":"4d6c61fa-1f96-4a0b-ae85-9423e09cdf12","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":"e052645d-b1df-4ee2-9710-d5e6c4a0a890","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":"82a1bfd8-535d-43bb-948b-606ee3d4826a","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":"a90575a5-9b17-4795-ac80-339939a59d6f","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":"4d76eac1-894e-4e1b-9b84-0f1b844bff49","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":"95073170-65f3-47d5-bd68-4c20a99ba913","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":"a259a11d-cfdf-464f-a765-8d6f2d755e46","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":"b60618b2-1f79-48f0-ade2-2007a72c38fc","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":"28aa9b4a-a830-431b-ab4c-fb446dff4733","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":"567be446-7506-4858-bf7b-7986126f6b74","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":"b60009a7-d987-4014-99ed-544b8092cc40","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Cer tain of the Fund’s investments in","page_number":109,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"b528c97d-5468-4706-ab35-73577e75054f","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":"170871a3-7aaf-4845-a01a-abbac94717cc","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":109,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"b0bf4668-0437-4853-87e7-873b608f05d2","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":"1796b507-9ca8-4c87-985c-d6d78dd38ab1","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":109,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"8802d856-232a-44b4-8e42-06c723926585","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":"aabf3fc2-da27-4580-9de5-542b3440dbf7","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":"450cf928-b358-441b-87cd-3c5643b22995","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":"c93ad85e-dd08-4a18-bfb1-32828cb1b343","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":"f4c3d225-3868-48bc-8fcf-f21a129d1112","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":109,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"6016eb13-f99b-4096-8046-ac24f5549d77","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":109,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"3d3723c2-2b2c-4412-b281-4f1c1298669b","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":"5997af1d-aec5-4b4a-91ee-2688dcbc390b","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":"a62a860f-5e22-4963-b313-98e69482d971","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":"2cd5857e-9ded-417e-a672-5f72ec1a6b81","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":"0593371b-3a13-469b-b64c-ce7e07cfec79","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":"2d8bf992-8b29-45d2-9e0e-1d67a81409de","block_type":"box","text":"offer other liquidity oppor tunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":109,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"7a162b99-5faf-41f6-aa2c-b138d92e9366","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":"205929b1-581b-4723-82f3-d1a5dbd9644d","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":"42e871a4-14ec-4ae1-a9da-ec0a8a3629ba","block_type":"box","text":"conduct por tfolio 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":"a9830160-9928-46c9-b1e6-5beea623c5db","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncer tainty. A Fund will be","page_number":109,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"90ba5ccf-2e4d-447e-bf32-01c756d2de4c","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":"bfb4e592-bd76-4454-9b88-2070bcaec82a","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":109,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"399e61c8-5802-4180-948d-0a3039e9649b","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":"36637acc-858e-4da3-ba07-13d9dbdf0b43","block_type":"box","text":"investment oppor tunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":109,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"7306f3a0-4d9c-4dfe-bbf8-0481e34e157b","block_type":"box","text":"especially as that Fund grows in size.","page_number":109,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"d24e7358-30dc-4983-a727-c49dc0777520","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in par ticular, restricted","page_number":109,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"5e473577-336c-46b3-91fc-db6bad33bf22","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":"06d831ad-40dc-4cb2-9127-626cc1d228c1","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":"9ab3d8f6-c5db-4add-aa2d-e87cf3deaff9","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":109,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"7a3f57a0-7f6a-45ba-8db0-17a141bb3b9d","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":"ee1d02d0-8e5c-4ad6-8b9e-555b79cb4cfc","block_type":"box","text":"II-71","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1936fe3e-e16a-4119-8906-0fd99e36d2a7","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d0f5145e-9da8-49ab-8299-50244bcc7007","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":"99baeef8-b258-442f-a76b-50ee299eb31d","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":"512e1519-7a97-4e68-9a18-15d0a56cad17","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":"1d37f83a-768a-4f30-a63f-71f2622ee58f","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":"de302db0-4072-4205-81e8-010016467984","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":110,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"53762e19-880c-42e4-87bc-16bc9cf514ec","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":"95e09f2e-ba56-4e76-b76a-2cffd54de927","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":"f607aaaf-4b7e-486d-bc41-cfc82f062018","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":"0036ab75-d109-4cc6-98d7-84d641841b17","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":"e7a983c4-e861-46bb-83c4-6281e1c3dbd7","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":"73a9f67d-03e0-4b2e-8e1b-8e58f56a22cc","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":"64916808-2585-4065-96e4-94645ac075cd","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":"adcf1f6a-2e6f-41db-bde5-8d5a2ee7d600","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":110,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"06ff0622-1e3c-4a10-a500-165984a76ea7","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":110,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"324774bb-aff9-4de1-8627-666b91b0e647","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":110,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"48f52eab-c9c4-4cc4-9e15-ff97c9c5a461","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":"2c733121-80e6-4952-8fb0-266c249ec10c","block_type":"box","text":"to another par ty and agrees to repurchase them at a par ticular date and price. A Fund may enter into a reverse","page_number":110,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"c36c3cb5-bc8c-4443-a913-57455c942b5a","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":"0a8cb61a-6a66-4399-9886-e089d2ac30fd","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":"6e23fde1-b9ef-4cd8-b538-808f8b155a8b","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":"37bb57e1-a38a-4123-b194-73311781d6fe","block_type":"box","text":"Fur thermore, 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":"9733012c-0afe-474f-9071-3d675fb845fc","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":"d26d7927-d247-4a7e-968b-a80f80e5481b","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":"19bea76f-1134-429f-92e3-e74e58678769","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":"4bf891e1-c7a4-4dfa-ac53-39ca597730e4","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":"38c4835e-727b-49e7-a90c-c98f91c690bf","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":"2a20886c-220b-445d-a919-5d5fe66f4563","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":"ead956cc-e848-4b8f-874b-f1e8d0f3ca8c","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":"229951a5-f2c4-42dd-a8e0-f002fd8e189a","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":"7a173ac6-9eb9-40b1-9408-2a47b6d5a70e","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":"8591b70d-a73c-4503-be45-e6be6b2b0d6b","block_type":"box","text":"similar financing transactions (","page_number":110,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"81ca6a32-3541-4b22-bfad-ac7311922cee","block_type":"box","text":"e.g.","page_number":110,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"ba1a7c4e-8fb0-4403-85e5-7993565168e6","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":"ba74fd48-c693-4f27-9104-719539ac9e68","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":"d8a134af-4007-48bf-b0c3-5db6a8066c5e","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":"20d5ae16-21f9-402b-8a40-40a8f00aa25f","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":"618de984-e79e-4b94-8c56-30c6620d44b5","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":"664726b6-9aa9-485e-b87a-b01b43d8d0cd","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":110,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"06bea600-124e-4e93-9e9b-18064c93558e","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":"b195c384-523d-49fe-b360-7aa403e753de","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":"86031f52-8ac4-481e-9967-732cf91f7dcb","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":110,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"ddc21e9b-46d3-47cd-b516-a3aad1a6b486","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":110,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"41a520de-364e-4d17-96d8-00f1a65c97a1","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":110,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"b67107a2-55c3-47ee-9f66-68f632f6d715","block_type":"box","text":"terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements, take","page_number":110,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"9267b992-3116-47e7-a63f-809c9e3a9951","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":110,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"5bfdd858-04ae-4d4b-95e6-3482028d1ba4","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":110,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"33230081-45e5-428b-a7f6-a5c3345862b2","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":"bdfbbac9-9b29-48fd-b64f-86d5d798de73","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":"d9cd9b2c-b3bd-47c0-a94c-f16a09ff3805","block_type":"box","text":"amounts to be received under such agreements.","page_number":110,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"9854b4cf-29f2-4a29-8141-b590b2a48866","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":110,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"106f7368-e52e-4a73-aaf9-771191a68a5c","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":110,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"32d201d6-79db-4c6a-9db4-010f4c51ec45","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":"db5fa468-55bc-47e1-a456-39ac27540de5","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":"aef1c826-2715-42dd-bd80-88a6efadd2df","block_type":"box","text":"normally have a shor t life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":110,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"df635faa-f1cb-49b9-9d64-851e05107c01","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":"cec4b719-e34f-4e2e-a4ac-fb1e64f6e550","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":"c99a438b-2066-48eb-8059-e13d1e82a31d","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":"eeee954b-b94c-4de1-9e6e-934c9dba330d","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":"f00633e1-5876-41b6-adff-f0c45f07f0d0","block_type":"box","text":"II-72","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0d0134ce-39b2-4779-9f27-810ce37c5945","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"11b0ddfa-378d-47ec-a054-67dfc526220a","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":"1c6f551f-6297-44e8-8028-439357232776","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":"8bc6205a-9b97-45b5-ab9b-a126e8a2619e","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":"20e9cf8f-73e4-4f00-8f2c-6d3bcba3673d","block_type":"box","text":"Rule 144A Securities.","page_number":111,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"d2952202-fa26-4cb7-a7be-b164f55075c6","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":"0c3c965b-40a6-41ee-9eb0-3104e863e770","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":"c0f6249b-f7aa-46a4-a851-3667c39e1d55","block_type":"box","text":"Securities Lending.","page_number":111,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"0fbc3b47-b538-455f-b0c2-98708ae1d37f","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":111,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"f3f0ec8c-9018-42cb-9ebd-35ed2080788f","block_type":"box","text":"be creditwor thy, 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":"ecd9e571-bd1a-4655-bf2a-5c813c32c59b","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":"352ca473-9309-4fac-accf-8b3b8cd1ac73","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the par ticular Fund exceeds one-third of","page_number":111,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"f7753aea-3eb4-49b5-8dd0-77b25c9d3a87","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":"5a267a71-4ec0-49f7-92fd-23eb511b07ac","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":"6ae84319-7254-4c82-9d4c-532dc9fe06fe","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":"e3cb964b-3786-4f87-87e5-32816f8fe731","block_type":"box","text":"the securities were not on loan.","page_number":111,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"216f4591-8aa8-4e84-8e2b-94cca73ef46f","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":"8cb48ce8-45a8-401a-a230-d667b7f4ea20","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":"6d370c22-f0d9-41b9-87db-39d309950fe2","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":"da458b98-af81-4451-a02a-7150f75b58d0","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":"7f3c8b6a-ca87-4bfb-9093-e632edad5b6d","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in cer tain shor t-term","page_number":111,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"b57b5004-8d50-469a-adc6-398f68d258b4","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":"dd651135-1a46-40db-8abe-a0994ecab3a7","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":"a57295dd-d0be-4d56-82bc-26223fec6352","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (","page_number":111,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"f1b50ee6-53f6-40c6-b1f4-d34713d719bf","block_type":"box","text":"i.e.","page_number":111,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"b47b6bd2-7550-49f6-acc3-9238d0b91539","block_type":"box","text":", the risk of losses resulting","page_number":111,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"bd619c28-c1bc-4483-be5c-3dc276f6eb41","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":"265539dd-6309-47c3-b9b4-9c5e687862c3","block_type":"box","text":"i.e.","page_number":111,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"faec7900-c518-4387-b371-1ef3b9829401","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":"43478809-e4ce-457b-9797-1d5a2d2d679a","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":"48137636-6292-4feb-98db-4e1c9d238812","block_type":"box","text":"i.e.","page_number":111,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"cbb6bec8-9a9c-487e-9d67-3e893d0792df","block_type":"box","text":",","page_number":111,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"0a5ae900-5c09-4a9b-9900-86fbf11ef6bf","block_type":"box","text":"the risk of a shor tfall at default when a cash collateral investment is denominated in a currency other than the","page_number":111,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"72461ebd-e9d0-436d-a5a9-9e2d80368671","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterpar ty and","page_number":111,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"423ad82d-a461-4bea-9766-7158620c4b48","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":"0c250c4a-8ccc-4813-a3e8-3d41f75b0993","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":"1180caa5-3e51-42d0-9765-8a5714d8b11f","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":"1d16af33-34a7-4883-b552-46646d8d0007","block_type":"box","text":"are subject to a corporate action and commit to the borrower a par ticular election as determined by the Fund’s","page_number":111,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"6fc68247-4896-4959-b6f8-48231ce4eb92","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":"7aff4fde-1ab1-45af-b286-efe7917ff88b","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":"bb05bad0-9f3c-440f-b9ed-4cdb12dbe28c","block_type":"box","text":"securities lending counterpar ty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":111,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"1a19cff7-7945-4f7c-a682-5b7b5a6b0751","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":"631b8e4f-6220-4851-948c-2c1e91c43197","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to par ticipate in a corporate action event","page_number":111,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"d5ba4eae-eff3-4e9e-98f4-13c0421d61cb","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":"56bb718f-8b27-46d2-94ef-6d60d71d3a53","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":"530f9920-f276-46aa-9f43-88bd3315856f","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":"b8c1f27d-83be-4881-95ab-51edadce5cfe","block_type":"box","text":"could lose money if its shor t-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":111,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"14f11c73-08ed-4eab-96fc-b1a0fb5140d3","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":"3646342a-27f3-4f97-b826-df0c6cdbc3f1","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":"e117ed3a-5590-47f1-8354-68eeff66d555","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":"d28c17e3-cf33-4216-bf73-b5f310ab9d14","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":"5121a843-001e-47ed-a60e-416514d4873e","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":"5254c62e-24be-4911-9b8b-89548a3a10c6","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":111,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"628b7fef-1ac5-40c0-bc51-a6b70ff48f9a","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":"d3108b54-4db5-400a-b123-b057cc4951b9","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":"6203b4a2-6a79-4546-982f-4bc1df1e1303","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":"c7eb124f-19fc-47c5-8ace-3fcd98a1fad4","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":"e9301b61-764d-4098-a725-0d439b8072f4","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":"12f8e837-462e-4b79-8eef-cc9c04f3f39c","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":111,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"84916277-2fe5-4fc3-99e8-faf7d7aa3960","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":111,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"75adf477-4309-42ee-881a-bc5fec547fb3","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":111,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"00e054c6-e654-4143-a533-92e5b905952e","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit suppor t in the event that the counterpar ty and/or","page_number":111,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"1b9c07cc-96a4-4ae6-ad63-efe3081992f6","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":111,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"8a0e370e-df27-41c1-adb7-1533e57ad125","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":"27a12a53-7cce-4b59-8aab-ab6810450eff","block_type":"box","text":"II-73","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0f5e1b08-0bff-4080-9760-011feceb7904","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ce8ac348-f2cb-4659-b8ba-b474e66b62bf","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":"20ba99c9-2d9c-4167-964b-7df7b52e5327","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":"2c2972d4-e5e9-4f9c-8905-0e72854544a2","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Cer tain Funds expect to provide","page_number":112,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"74b1cef4-6119-41fe-b39f-271f440a60bb","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":"ed54d0ed-8c8d-43a4-b1d7-de1a319a395c","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":"fba444c9-7080-41c8-b0f8-a5c0b0e44223","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":112,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"6adfd5c3-9254-4f33-a7b9-2a188900e747","block_type":"box","text":"information (not including par ty 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":"67e7b3b6-5714-4854-88af-3f5bd7448d81","block_type":"box","text":"entered into in connection with shor t sales. Compliance with this rule is expected to be required in late 2028,","page_number":112,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"38e6ded3-f04f-4d84-80f5-82449059afcb","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":"c4d2ac4c-f81d-4d7e-8690-981baba4a151","block_type":"box","text":"the current expected compliance date.","page_number":112,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"8151e451-3da0-4d07-9c9e-c9c52eee38f8","block_type":"box","text":"Short Sales.","page_number":112,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"1c34b62f-8243-4545-a6c9-1821c3f1da9a","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":112,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"3a50f05c-02ee-48f3-be8b-0ced8bd250ec","block_type":"box","text":"value of a por tfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":112,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"50af0f6c-862b-46b1-b408-b1940d09b59f","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":112,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"58c474f3-8046-4685-8206-8ef9a4de8aff","block_type":"box","text":"“against-the-box.” In a shor t sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":112,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"2ea944b9-6ba3-4205-981e-e210899f566b","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a shor t sale, it borrows","page_number":112,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"13f12398-b52e-4689-8faa-6a1e74d94a07","block_type":"box","text":"the security sold shor t and delivers it to the broker-dealer through which it made the shor t sale. A Fund may have to","page_number":112,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"790e98a3-b5df-496d-bcd0-a642b4527c9b","block_type":"box","text":"pay a fee to borrow par ticular securities and is often obligated to turn over any payments received on such borrowed","page_number":112,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"61915f56-c862-4cb8-a431-36e46d29d6bd","block_type":"box","text":"securities to the lender of the securities.","page_number":112,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"6284c26c-8199-4f3b-9793-f410ac02ee05","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":"1e85624d-bda7-4ec4-8353-69d45d70470f","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":"38e2911e-6cca-40b2-8fcb-58919cd3ecdb","block_type":"box","text":"uncovered shor t positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":112,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"27dd90ee-4aa4-4eea-a3f8-c970a193a5ee","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":"8374951e-37b9-487d-a9ff-909daef29299","block_type":"box","text":"market value of the security sold shor t. Depending on arrangements made with the broker-dealer from which the Fund","page_number":112,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"4f771782-8331-4ad9-8598-9492fa7b767a","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":"48fa423e-a6ff-4336-8107-18468f66d284","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":"2f202755-670a-427b-a1cb-ea3c4e4a6d45","block_type":"box","text":"Because making shor t sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":112,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"6d43c7af-1031-407f-bdf0-e05f2f668ee2","block_type":"box","text":"securities, such shor t sales involve speculative exposure risk. A Fund will incur a loss as a result of a shor t sale if","page_number":112,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"28590f51-3728-424f-ba98-539428c80038","block_type":"box","text":"the price of the security increases between the date of the shor t sale and the date on which the Fund replaces the","page_number":112,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"93bd2f71-29aa-44dd-b4dd-097c4848746d","block_type":"box","text":"borrowed security. As a result, if a Fund makes shor t sales in securities that increase in value, it will likely","page_number":112,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"fd535ca1-e2ce-4c0b-8eab-9dd20e00e728","block_type":"box","text":"underper form similar mutual funds that do not make shor t sales in securities. A Fund will realize a gain on a shor t","page_number":112,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"60b6b36f-9639-4578-b0cb-da1d0797ef36","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":"4b0b2d01-d0f9-41df-92cd-26f464227bb6","block_type":"box","text":"close out a shor t sale position at any par ticular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":112,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"cd8931f6-6caa-40e5-a2dd-f825dd824c2a","block_type":"box","text":"the price at which it sold the security shor t, its potential loss is limited only by the maximum attainable price of the","page_number":112,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"24c544db-6dc9-421c-b1bd-6771fa18dfb6","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":"836872d2-f644-4e37-a7f1-7668dc7a576d","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":112,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"d9a651a7-7d1f-4455-88fe-dbc774703f6a","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its shor t sale","page_number":112,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"f62e8605-655b-42f9-9640-0415a623c682","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":"7c89068f-01fe-4a8d-80f6-3a4ec80aeb7d","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":"5325a17b-d90d-494a-b287-f9c5a6099823","block_type":"box","text":"Shor t sales are also subject to cer tain SEC regulations and cer tain European Union and United Kingdom","page_number":112,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"2fc185b8-e3c4-45b9-b8ed-359bcb234f51","block_type":"box","text":"regulations (under which there are restrictions on net shor t sales in cer tain securities). If the SEC or regulatory","page_number":112,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"be591117-435a-445c-997e-f8012cda78fd","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":112,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"e36aa2d7-df64-4df2-8b2d-cf9c7afd5600","block_type":"box","text":"Fund’s ability to engage in shor t sales in cer tain circumstances, and the Fund may be unable to execute its","page_number":112,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"74094020-e6b3-4016-90a7-bc5dc6a90ab7","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":"5c429a8f-17c9-4a3f-9999-4278292d25dc","block_type":"box","text":"jurisdictions may adopt (and in cer tain cases, have adopted) bans or other restrictions on shor t sales of cer tain","page_number":112,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"cdfc77d7-abcc-4b2f-a4fb-355aa6cd24aa","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":"a4ca1e72-1acd-4be8-aa8b-a75e441c8dd8","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute cer tain investment strategies and may have a","page_number":112,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"25263f80-ec92-4c5d-acf4-eff46b75f8c8","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":"00173cec-a378-4fe1-b52f-3f281bd86218","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":112,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"3c79f948-fd5b-4945-ae2e-5763136dc92a","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":"7fd6c961-dfa9-4612-81bc-aaddd43ed248","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":"1db6f9d6-9134-4720-b102-6eb6989a3e22","block_type":"box","text":"potential acquisition oppor tunities, 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":"30bd52a8-8f55-4c43-81c1-8743ad20238c","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":"dd38dc19-1eea-4bfe-a2b6-2f0f6ab3a72f","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":"5b636129-31df-4c0e-8b47-851a5ca87eae","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":"7693c163-d144-4688-a336-7cb8ce107dc1","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":"6c5c2f59-2fbc-4cf6-9092-5aabdaf932d0","block_type":"box","text":"II-74","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f923838c-168f-4cb9-bbd2-25e9c8a09323","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d1c646e8-5e24-48d2-8c39-4dac304a329a","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition oppor tunity.","page_number":113,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"c5a8d8f2-9e41-4ed6-8486-23ae86f7bb47","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":"ce13efb3-2524-4083-8688-3884d8d2d5b9","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":"0b5c3b13-de60-42c7-a393-0ceb33606e55","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":"127bca52-7f81-4100-be59-14348cc126c8","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":113,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"44695bdf-ae42-40f1-bd43-a5e0879108ec","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":"9968de72-9805-40fa-bb11-aee54fa8ec87","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":"1c0910d0-85b2-47f9-b37b-24fbbb3fe214","block_type":"box","text":"par ticularly 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":"d44628cc-7d6d-44e6-b9c7-5c1bffe4d9a1","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":"8aa7405a-b7f7-4d9e-b965-d907ef6504b8","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":"5df96baf-162f-43e3-a894-7914ab65e62f","block_type":"box","text":"cer tain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":113,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"526b2484-1808-4613-a395-c0b0f1aa08f2","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":"d48df790-bce9-4f0a-84e6-e90a853c3289","block_type":"box","text":"Standby Commitment Agreements.","page_number":113,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"c0c02b18-05b9-4f75-8d42-3f2218395fef","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":"32bf8c7c-671a-44da-aefd-685c6fa3533e","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":"942cf0c3-dfe0-402b-b467-5cb0cb69f314","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":"0b948101-ffd3-4873-a2de-6c2bf0910ed6","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":"3796de5e-19f8-44d4-a14e-5ed1a6000d48","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":"45e44dd3-ae24-4d69-b158-15bb2f06a77d","block_type":"box","text":"advantageous to the Fund.","page_number":113,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"92f21fe0-fc8c-4e30-8312-6f43247e9e5b","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":"219bea84-03e6-4096-84eb-1a3c61774fce","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":"f31ef77b-8f1d-4d62-8080-9260e369c901","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":"83e0a7c8-fb86-4e71-af12-01c82cd10536","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":"9b18f954-cb6d-427d-93cd-633d2f78a478","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":"8e03c281-d532-4d65-8829-558d518dcfba","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":"fe7856f2-4153-448a-a6ed-a5b29240da42","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":"cdb4eddb-a55f-4494-ac4c-faa7a49810d8","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":"7a4284ba-df03-49fd-8f9d-b486d70e72a2","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":"e5e6d463-abdb-4097-8a45-80f176c21285","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":"d0281322-3aa5-4076-b65a-6378e69ecaf7","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":"10bd4d44-8acf-42d5-b87d-9d226fe02dfb","block_type":"box","text":"por tfolio 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":"33c46fc1-55a5-4fa5-abc1-7cceec259b63","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":"b5527a38-3d24-40fd-b0fb-9a22df46d9fb","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":"7d1415c4-02e8-4d9e-9589-9a1cafe3b299","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":"5a21afa2-ea58-4186-bf3d-a733bee520dc","block_type":"box","text":"Stripped Securities.","page_number":113,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"25aee3ca-734a-4fe3-9848-8f583999cc24","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":"4db0c000-950c-4e11-858c-141b6421d892","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":"1d1ece20-b9cd-4afb-a054-28bf513380a2","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":"ec859b15-8eba-4dd5-9e59-16f8b1822f97","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":"7b988651-fbc8-449b-96ed-f6f470bd4cbe","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":"6a10e4c1-bab5-4e64-a352-33a96b304b48","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":"2f77eaf6-fdb9-45e4-9cd3-88449d82d0d4","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":"c715a7e4-a265-40b4-b0eb-77560096883f","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":"0932fb50-5168-4e50-94b9-2182f29ade7b","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":"95491fcc-fb32-4d93-a4f0-f0488fad1703","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":"5f7ccd0d-07a3-4795-b2af-cb2fa61bc4d9","block_type":"box","text":"Structured Notes.","page_number":113,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"5f53d25e-b9fb-4d18-ae1a-9aaa39e0983f","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":"b8bcb4c6-a919-4050-a3b2-97cb94a8971c","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the per formance of a","page_number":113,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"41b9b88a-fb51-4130-bdf6-f45d869e060e","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":"9af27460-13fe-44ba-b6cc-1f4363ab0823","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":"bad41097-ea63-4d54-8ef3-be308a90ab18","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":"b994a11f-3c1a-4886-b9dc-7b405805c16f","block_type":"box","text":"may provide that, in cer tain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":113,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"871afe05-f505-48a1-8bf0-197f4fd1650d","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":"1d8d5a4a-9fba-4c40-a8a7-c8cbb9ddadd5","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":"dd0e933a-19a7-4d96-a55f-4a6678d95688","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":"b4bb10b0-d3ff-4c0a-999c-17845c2ce2c5","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":"a31e6b0e-a20c-4a23-85cc-cf43ea2685fc","block_type":"box","text":"II-75","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"02e113c7-04de-45cd-a6ec-29d80db498c7","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"162a8065-3340-418c-8b9d-5c4e3a7f1ea2","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":114,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"98c7baf5-b32f-4963-99b7-844570ca069e","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":"2b86d5a0-4a95-45f5-81a6-bac37df7a503","block_type":"box","text":"the risk of loss.","page_number":114,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"03110541-14b3-4d65-befe-885d576b4649","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":"2f132486-cc84-4f63-b716-b2f590e1de41","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":"0517bc7e-a64e-464b-baf7-342274e61079","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":"4267a35e-9bfd-423f-8686-58d645733f78","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":"0a76aa84-b406-4c48-a3e9-50b08a9df2a7","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":"e67ebaba-a628-4232-b657-83a6dbd7d1ca","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":"2dcf3a0d-419c-4675-bb4c-2a406376e5fa","block_type":"box","text":"Taxability Risk.","page_number":114,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"48ab3e96-7798-4650-8977-3e52f5db275d","block_type":"box","text":"Cer tain 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":"11403f42-b53f-4a43-87e1-4671170401c0","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":"3912e4cd-4332-4c8e-bb67-64713aaeff05","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":"ed45ceb0-ab55-4e1b-b61d-2de240a55d4d","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":"9cb6d5f9-5350-48f4-96dc-3011788198f4","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":"3d29528f-2561-4fde-a06f-9ceadffbdaad","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":"529539b1-55f8-47a4-86c0-b8c7e19d1295","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":"51f48524-880c-41f4-ac65-fe2d3a67b857","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":"f719992d-0de5-4e99-9240-a3662d69fe40","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":"6861379d-5780-4a5a-b6bc-ae060d6e86a8","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":"4c0c9de1-063a-4d34-bb2b-743f5e6bf7d9","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":114,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"474995b3-beb1-437d-ae6f-2f0d9cab1ee3","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":"ac93c1f9-0495-499f-9711-2fe56f1afff2","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":"36e86d3f-f629-4409-a2fd-5520e08831eb","block_type":"box","text":"local intangible personal proper ty tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":114,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"ee406b66-16a3-4632-8af5-65c9470e7406","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":"fc74c496-eb6e-4dc1-95f7-2d754a2f1437","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":"fed0f42c-d651-47bd-b6d0-c31145ffd6d6","block_type":"box","text":"Temporary Defensive Measures.","page_number":114,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"d5d3ce38-f3d8-4c0d-b422-5373c6dfd601","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":"db5be8f7-1224-4d51-90b5-ad6eaf73425f","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":114,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"eeaae35b-d61d-4029-a212-d2792cb9a3bd","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":114,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"cd295b9c-8e42-4e75-b646-2e0c44e0e929","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":"9e6c130c-b624-4fbf-94f2-04faa84c7a81","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":"7edbd5e1-462f-4339-b761-4d8679f8028f","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":"a9600dba-a9fa-49ce-bb48-83f1842dc27e","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":"910f50be-d1ce-4658-af6b-933cf0c0386f","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":"965fb2df-7ea8-4fca-a2d0-e2f451ffa265","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":"c101d300-1d61-4ec7-bbe1-8107c649e65c","block_type":"box","text":"its investment objective.","page_number":114,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"1cd665b2-3046-4eaa-b9c9-e43046297853","block_type":"box","text":"U.S. Government Obligations.","page_number":114,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"11771f2c-a3e8-4a71-b4d4-32f84a51d843","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":"02c22424-9c39-4531-acb6-b822573d4059","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":114,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"2758b9a7-ac8b-4c0b-86f7-69580dc04683","block_type":"box","text":"U.S. Government are suppor ted by the full faith and credit of the U.S. Treasury. Others are suppor ted by the right of","page_number":114,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"4e9db862-91de-4f7c-a6fb-bbca0af4efe0","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are suppor ted only by the credit of the agency or","page_number":114,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"4682a4a5-9517-44ac-8739-a8739490e188","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":"90b9b835-e5e0-439b-b1eb-9e290a8ea0a0","block_type":"box","text":"suppor t to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Cer tain U.S. Treasury","page_number":114,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"afef9b4f-14f9-4cd2-8767-a85db4b59745","block_type":"box","text":"and agency securities may be held by trusts that issue par ticipation cer tificates (such as Treasury income growth","page_number":114,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"7ffae2be-2a85-42bc-9bce-6df7d5738d68","block_type":"box","text":"receipts and cer tificates of accrual on Treasury cer tificates). These cer tificates, as well as Treasury receipts and","page_number":114,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"e305b1ee-b605-4724-bc8c-006444c999d1","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":"d7197a37-632c-498c-96de-4629d3dc4cb6","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":"01078436-068c-4ab5-8999-76e23b3f23ae","block_type":"box","text":"and may (par ticularly in the case of stripped mor tgage-backed securities) exhibit greater price volatility than ordinary","page_number":114,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"03c16ea8-2059-477d-b9fb-809f557951b5","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":"cc31fc2d-68cb-4455-bddb-3a8ac8404e85","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":"7bde4c20-f065-4567-b64d-07828bb2cf4c","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":"41c97385-6a03-4b60-8d20-7b906f439ec9","block_type":"box","text":"Administration, Expor t-Impor t 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":"990723a3-95b6-4491-927d-e0a41a250ba1","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":"4d85e933-b0b5-4bfd-af91-e5ea407b6e86","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":"8488b8fe-8469-422b-b616-036367b54553","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":"803819c8-4e38-41a0-8b12-b63f9573bf1c","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":114,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"6029e5cc-2525-4595-999b-27ffe063af2d","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":"3aab0442-721b-44a2-9570-2b57b4673637","block_type":"box","text":"II-76","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"986e3fc5-1884-4b4e-a647-e1914e6698ec","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"80bcd073-8df5-4e63-9167-bd684e4c43f2","block_type":"box","text":"U.S. Treasury Obligations.","page_number":115,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"76bc3db2-a893-4621-b8a9-22f0d5266344","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":"d3c5d465-3c31-49a5-8314-720384f90dbd","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":115,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"4ada72df-458f-46fb-836d-c22ba7e84c60","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":"96d57c91-b465-4da9-b21a-b8f62594442a","block_type":"box","text":"that the U.S. Government will provide financial suppor t to its agencies and authorities if it is not obligated by law to","page_number":115,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"5939a469-e3f7-425a-bc69-4f63718c44fb","block_type":"box","text":"do so.","page_number":115,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"0ee13f73-7a89-4eef-88ba-8a032079e8cd","block_type":"box","text":"U.S. Treasury Rolls","page_number":115,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"f885aa09-1033-411c-9b8a-4152806df88d","block_type":"box","text":".","page_number":115,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"f033f5bb-261c-4ea6-9e1c-6068f811f183","block_type":"box","text":"Cer tain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":115,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"52096494-9f5e-4681-a8de-b9eaee55b41f","block_type":"box","text":"sells a treasury security to a counterpar ty with a simultaneous agreement to repurchase the same security at an","page_number":115,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"e90e9696-aea3-4877-8576-87aa0589809c","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":"99c3a696-f36f-4266-8971-027d0f271300","block_type":"box","text":"maturity of a Fund’s por tfolio and increase the interest yield on the Fund’s por tfolio by extending the average maturity","page_number":115,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"74c43dee-6993-4405-a786-490b6011fde7","block_type":"box","text":"of the por tfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":115,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"f0d54f61-a930-4160-b4fd-81820bb71d73","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":"6b6d10e3-ba6e-43b0-85ae-6654e04d5067","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an oppor tunity loss if the counterpar ty","page_number":115,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"90160d47-68d9-4d45-849b-2cff35a903fe","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":115,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"49be38ba-d5fa-4e75-8fc1-c93a27f9fa79","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":"888f6e80-9dfa-4225-a672-ee31891b3988","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":"e7f4c7cc-e929-4083-b733-d144e55b5b61","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":"63e10323-1f14-4605-9b27-695bef6cf52e","block_type":"box","text":"Utility Industries.","page_number":115,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"ba92bcb2-fc38-4b69-ace7-03612c4586a6","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":"ee637468-7da9-49df-aac6-7976cfb38faa","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":"f0ba0938-649c-4e15-a4b8-b258ef178817","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":"4d6f80b9-c531-432f-9e91-2bcf602995b3","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":"3971da6d-7bcd-4371-a574-1011a641922f","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":"002c7008-d009-4ec4-b56f-227518ef8e0a","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":115,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"b7fa8cb0-73f6-487d-90ee-297c2b257239","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":"d6c0309f-6497-48d0-9e95-322250c7252b","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":"9bdfd187-6162-48df-a7e0-d878a5de6316","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":"5f4bd498-8629-4f9f-94be-a8aca7c306a4","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":"85bcf04e-7fd7-42f1-828e-a9cb24739957","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":"51243ea7-a844-46b6-b81b-351016ea15e8","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":"196bc2a5-6275-4646-8aaa-bea5c3486a13","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":"27027d43-20ca-47d5-bc81-4a17b028ddbb","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":"5b6ba127-d5ed-403a-9ffa-4d3816337b60","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Cer tain of the issuers of securities","page_number":115,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"b62ada15-896b-4110-a7e8-1425cb4d2d92","block_type":"box","text":"held in the Fund’s por tfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":115,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"330eae3b-6bb5-45a4-a6e5-78c5666bb301","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":"b6f6e342-0035-450e-9c73-d62877414c01","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":"bda8b58b-bed8-4b26-add1-ed03d2db9e02","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, par ticularly a hydro-based electric","page_number":115,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"e8eb08f1-a616-4b02-9906-3b69ea3d7f7b","block_type":"box","text":"utility.","page_number":115,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"3dbffdd7-a04c-43ed-8f4c-e3fc86e9846b","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":"56c3ad85-81c9-49e7-af2a-0d119ee26e2a","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":"99684542-61ff-472c-a39d-2e3d84e5a7aa","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":"57288aed-5ec3-44aa-bcd6-1b4656b30d06","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":115,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"f601c9a9-decb-4a8a-ba5e-a53d537f38d4","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":"7433d012-4dcb-4930-a2a2-2fbf9e47a6ad","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":"2e84848a-77f4-4f3c-8907-6d24c101fac9","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":"3dd470eb-038d-4568-86ce-ff619cb08bba","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":"dd6b1567-95e7-4219-b2c1-6a0c2894e68f","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":"7c6e0323-d596-4207-9aba-17096efde7be","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":"162b5dea-4205-47f3-8a86-0942575ebc4f","block_type":"box","text":"continue in the future.","page_number":115,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"9954b02a-ff7e-478f-af97-f035d44b1e51","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":"ecd40e43-03ce-400e-aef5-4fdf4556f9e8","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":"cff1ee12-8ea2-455d-833a-6131cf0956c4","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":"180dff6c-f9c5-4cd4-90f5-cde22fa87024","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":"3009b270-f9c7-4bc2-afaf-3eb493029753","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":"b6972709-cf4d-467a-a037-60e042d47956","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":115,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"af4e5377-abf1-4d08-b9d9-c431a3cd5d8a","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":115,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"907afbab-2be6-482e-96da-343f1a2134cc","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":"30815d5d-726b-46c8-9daf-cde2a31fb0e9","block_type":"box","text":"II-77","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"98ba77d6-af91-4cf1-9ccc-542a43413eb9","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f3b043c0-507e-4522-ad57-1da29560bc83","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":"129e2c19-f262-4073-a0f7-3bf8a5a73209","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":"30b76bb0-c391-4425-88bd-cd3e44c6964f","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":"d7d9ee81-b5d6-4885-b406-614d7fc3771b","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":"7ecf3cc8-a7db-4e67-b469-fe3c8a17d9f4","block_type":"box","text":"restrictions on the maximum level of profits of cer tain utility companies, but may also subject these companies to","page_number":116,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"fad00fec-7cd0-404c-b907-10d102a28551","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment oppor tunities that may arise from","page_number":116,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"e0e994d5-5226-4987-a3e5-0e28d959e10e","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":"9585ceea-23a3-4d6d-b863-73fd2c5df033","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":"cd1584b2-91ab-4d83-aa07-60a8f27ba466","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":"876c6906-a213-4a21-b3b6-1242f64d6f43","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":"66115fc6-20bc-4f97-a421-165a2042567e","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":"249317f1-1075-44b5-92e0-6d22413aede8","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":"44c5a089-bd96-440a-9824-426640aa5b12","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":"dbc82ac5-7a7b-446b-9821-6c44e59ace95","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":"cf128a37-d9e8-4d1d-947c-18f70ea7529a","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":116,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"072af645-b2f7-44d9-9a18-e0104ebeefd1","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":116,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"ddad23f4-414f-4eb1-8a7b-57b9d365d028","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":"87deef6a-1dc1-4b78-aaf5-7c6a1f0e3930","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":116,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"4ff36414-2a8b-4981-bd04-64fcd8abc6fb","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":"b21ebb68-514a-49a3-9afe-9b6a9007ecc9","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":"54899b4c-922a-401b-b05b-73b925b6c150","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":"c93087db-a495-48cd-b003-cfd14ffd458d","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":116,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"2a64324e-9fb5-4eae-a716-837c2a951f8f","block_type":"box","text":"increase.","page_number":116,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"2cd2ba46-612c-4a95-a6d6-5d91c0e9e598","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":"2fc4023e-747b-40f0-8075-544f3f91ea8e","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":"bca21783-0f82-4d5e-812f-e9ed68bdcc40","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":"449f0ea4-1771-4957-8dec-eb3629bd9525","block_type":"box","text":"Electric.","page_number":116,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"2ee30859-f41b-4e1a-8411-cdeaf2b15a28","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":"e1f05dd1-1e13-424a-ac25-9c7769ee63e0","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":"de2d36ce-8d48-4c21-99a1-45f6854416b1","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":"ae10c7e7-b46b-4673-847e-be3d1c24d496","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":"d990f372-1349-42d0-8b5c-24fc7589f8b1","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":"1aa6ea01-298a-4a17-92c6-3e2f451c79f1","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":"05a3656a-0568-4663-b173-17a12e15806b","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":"26bd9bc7-c0e8-48ef-ba0a-dd427a3126b9","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":"921f96ef-db25-4b84-beb1-8025eded7e3f","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":"e3eb24a8-0cec-44b5-9875-45e6694836e5","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":"1c24636c-32fe-441b-8a40-052668d6cd26","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":"0a8a80fd-cbd9-4d46-b403-10384079e584","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in par t with customers. In a period of rising interest","page_number":116,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"1a808a0e-359a-4a81-8e93-8dffe2255556","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":"86f95274-5def-4f38-b7d0-fcb755b202f8","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":"bfb5edcb-08b7-4d53-b30a-114d99cec27c","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":"af80ae18-15ba-48db-83e8-053b42db5cba","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":"40aeb16c-8c54-4f44-8fe2-bb314a5c51f2","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":"689b98fb-910a-44fd-8289-455ae7f5aa7d","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":"7d1e3b2e-8842-4d7e-a39a-24d931fe37e2","block_type":"box","text":"and for decommissioning such plants.","page_number":116,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"0fc5ebec-4bad-4053-8cbd-f1da54e6d994","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":"4f33881c-f437-4da9-bac3-24457024af00","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":"c57ab562-167f-4341-bb85-028eecc52976","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":"b08f5ac1-34d4-4d3f-8a88-d6f15df82de9","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":"bad85cba-e53a-48c0-9c9a-b1b27482ff45","block_type":"box","text":"is expected to be the least competitive and the more regulated par t of the business, may see higher ratings given the","page_number":116,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"f79cd697-f007-476b-bd1f-f786de60e41d","block_type":"box","text":"greater predictability of cash flow.","page_number":116,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"705ecd61-35d8-4320-83b5-1ddffdcbab08","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":"c935cbd7-07aa-4a8a-a3a8-5fd357d159ab","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":"37cbdd35-c3ac-463b-8b03-f2b10f55e0f6","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":"5e5e91c7-88ca-4e99-9dd7-2cf6eecabe1d","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":"0c717252-5c97-425e-ad54-e47f7b48d3f1","block_type":"box","text":"II-78","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f3e8d898-d2fd-4454-b5b6-fb143d754ef0","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9cb13ab2-aa4c-4873-8268-792e21a88b6b","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":"cbceb4c3-ec51-4741-9cd3-d5e08c0faa60","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":"57265a76-d4ca-4443-b36e-cf20473649e2","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":"d63971fb-613f-435d-9368-59429f6679f0","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":"d5de8af2-e9b5-4656-bea2-78d3b6dd7900","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":"b550bc28-63d5-4b83-be09-e747c3885174","block_type":"box","text":"Telecommunications.","page_number":117,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"7c01f921-9f63-4f13-9e4a-1afc76358dad","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":"040f52ac-3f5d-45c3-90f4-4899beee6340","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":"ce3b4b82-0e04-4f79-b16a-701f0ea9b28d","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":"99087e1d-bab2-4a24-8606-ff3870f8b07c","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":"4f06f9ef-211d-4d52-b69f-23abe66151a8","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":"b8db288a-3e98-48cb-8bb6-39b52acf7c77","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":117,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"d33f6128-a209-479c-9972-21d1becab321","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":"4e539c6a-e029-4baf-9da4-7a4b99dccc60","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":117,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"57ec1549-5b26-41c7-8712-12fc698f6006","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":"27916f88-4aba-4c0c-83e9-c0558673d985","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":"e65bb1a6-0d25-4943-9a0c-8a4884db13a2","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":117,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"2a8c3aa2-fa4b-4759-bbe2-302a486e063f","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":"141d5dc4-6dbc-4097-b382-230fb271f88a","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":"91aca68d-b7aa-4dcf-90e5-7483eaafc23b","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":"c0668a35-97e8-4876-b13d-a484425fbd3d","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":"647b2f73-b287-441a-82cb-6875958c9c63","block_type":"box","text":"residential, corporate and governmental customers.","page_number":117,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"db373410-8c9e-4cd1-aebd-c0e963a643b1","block_type":"box","text":"Gas.","page_number":117,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"6cfc9c16-3f57-43e9-8703-698590c3b4da","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":"d8e1d312-2d04-435a-8074-801560d03888","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":"a32ebace-7c02-4eec-bde3-636d4f937d59","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":"0be7eb41-e7f4-4dfc-bf65-24cbe02a6118","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":"f308f858-54f8-45d3-8a98-61b9f2f7fd12","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":"0e79cb32-10f4-43fb-a466-768ccb6bb4c4","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":"987ce5f7-6962-4eb8-aa85-4dc55afaf3ff","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":"f58a464f-fdef-4205-87a3-43fdb9b044e5","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":"35864dba-be27-4aba-91ee-949c86829990","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":"9bb70b5a-6fa3-4cb6-b468-ab5d945274ab","block_type":"box","text":"Water.","page_number":117,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"adb123f3-5ca6-40b7-a0a3-20f41e749334","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":"113af98b-bf14-4d7d-8111-0f0a43fdc11a","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":"5bc0d19b-1716-4f61-8bb2-b6dceff94ef6","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":"80eb2180-217f-4474-bdc4-5637f833d6fd","block_type":"box","text":"opinion of the Manager, there may be oppor tunities for cer tain companies to acquire other water utility companies","page_number":117,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"eb6b8bab-5abe-43db-b148-1c8979e26983","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":117,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"72b06587-0b06-4963-96ad-ed5488e99953","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":"7e49fd4e-f955-4e05-9ce1-e8bcde250680","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":"2e395404-334f-4465-934f-fd095fccbc3b","block_type":"box","text":"Utility Industries Generally.","page_number":117,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"b280814c-e0a1-44dd-a13b-7ffe5b9f805e","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":"58c56d1c-8c99-48a1-a9c8-6ca6aeedcdff","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":"effc6f7c-509a-42e8-a4f5-8f2d32b4b391","block_type":"box","text":"not develop in the future.","page_number":117,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"60590543-7fec-4e35-836c-fe437c4aefd7","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":"c238275c-37ae-47bf-a693-248fe6f3000d","block_type":"box","text":"A Fund may purchase or sell","page_number":117,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"0f514da3-9d7c-4cd7-a1e1-8b524ac7679a","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":"83996536-0dca-4aa7-8910-25008bf7203a","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":"addafef6-73e4-479b-948e-df575aa5903a","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":"0eaf4e71-8142-4c3a-8bc9-68754157649f","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":"4623f4bd-39d6-47e3-851c-9665aa0c1fdf","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":"aae7c92c-55d5-423e-b16b-e040511bc525","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":"44e6ca10-e798-41bf-8a87-e770701fda03","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterpar ty generally will be required to post collateral when entering into","page_number":117,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"5b78a144-20e2-49e6-b5b6-6e5672de7e46","block_type":"box","text":"cer tain 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":"67dfae0a-e11a-476d-b239-1b27abafae95","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":"1e0e200f-7f1c-440b-9cc1-9db9608c7ae3","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":117,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"99386dcd-68df-4758-98e1-da2d7d182554","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":"dbeb1e2f-56fb-4d00-a593-aee48b42d934","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":"413b7735-bef6-4474-86cf-ddc2d8110a90","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":"baae2659-9650-451a-9c77-77f82ddf5490","block_type":"box","text":"II-79","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"68936429-5b5a-479f-ab5f-1ffbb1c43d91","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3505cda2-1f5e-444d-97f6-9fccb2166911","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":"86ac7eeb-a3cb-4609-9823-e714d815a992","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":"22df806e-8d53-44f5-b529-bd66bb649471","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":"e5874151-177a-4b11-afc0-56b79ac2055b","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":"9ed5948b-6239-4aa8-a54b-7be13bbb6a78","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":"1c103188-26a7-4a05-aad4-0b0ab41a4fa2","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":"d4c7047c-a48a-4a24-9503-37ae1385cdcf","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other par ty to","page_number":118,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"ab1689f1-f07b-4492-abdb-04603da64849","block_type":"box","text":"consummate the trade. Failure of such par ty to do so may result in the Fund’s incurring a loss or missing an","page_number":118,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"334403f3-e557-4507-8ad2-68978ded6a4e","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":118,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"c70e4f00-7fcf-457a-9321-89a72fc2c6b6","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":"5ca0ed5b-b549-47db-84e4-d31d08193227","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund star ting on the","page_number":118,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"a30056b0-d572-4eec-a686-2c7e8b3096d4","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":"7a94da87-e7e4-48ad-9fb9-7c97a7703c50","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":"7b13c31b-948d-4bcc-ba1f-c8d54a736873","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":"55490aad-4893-4300-9182-629d45855371","block_type":"box","text":"securities (","page_number":118,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"e91989ee-d71e-49ad-b055-defcaff4d799","block_type":"box","text":"e.g.","page_number":118,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"be0d2939-c25f-407d-a5fb-881b4b66882b","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":"4d54bf7a-f304-4623-860d-fe1f6ec39042","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":"4be13b01-8b1d-4e81-820c-3582b3917a78","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":"6eefff07-c69a-40fc-8528-34437447171f","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":"8d358b6b-6571-433a-b567-c50ae0ef210a","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":"eebee877-5889-4fe6-b5d3-a30159f5c953","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":"3e3f92c1-ad50-4df5-a729-a0a0e6be3d8f","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":"03929ce7-674d-4407-8877-161c56471ee3","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":118,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"589de682-429d-4d49-a2a3-32416d970c37","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":118,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"dafd0fab-b997-47e9-a4d7-cbb2a777f9c9","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterpar ties, such as a Fund, to","page_number":118,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"fded4888-fd17-483c-9aa0-9d25da18a825","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":"b495a6f7-a59f-4273-90c1-475b190561c8","block_type":"box","text":"suppor t in the event that the counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency","page_number":118,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"6f5372f8-e1ca-4c63-ae1d-bef329457581","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":"172a3d9c-607f-4a0d-8131-057fba1fd265","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":"79f95af7-b6fc-40f9-89e4-e6aaea56c371","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":"1fc8c97d-7b4a-4d76-a112-78242e0650e1","block_type":"box","text":"Yields and Ratings.","page_number":118,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"b3f193ca-dcd4-425b-af26-3b22b44a200e","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":118,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"7fba9a26-b1db-43bd-b745-c0f0e6080adb","block_type":"box","text":"market conditions, conditions in the par ticular market for the obligation, the financial condition of the issuer, the size","page_number":118,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"2ecd657f-2702-48c4-87e4-cb4b572395e3","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":"0ed2b0b0-3190-4707-bd57-f1e6dbc067a3","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they under take to rate. Ratings, however, are","page_number":118,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"d0ba8691-4826-43f1-b577-8ffacfed5f9c","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":"32651945-8bab-468c-a687-4c90252fa0b5","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":"fa1ad931-9bca-47d5-bea9-b551b066f562","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":"37fc404f-e8e6-4449-a20e-9d6f7d6d837a","block_type":"box","text":"continue to hold the security.","page_number":118,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"425710fe-433f-46a9-ad05-6e04b6d589f6","block_type":"box","text":"Zero Coupon Securities.","page_number":118,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"e493f92f-0bd5-48b2-a421-d7b57c3be094","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":"0e62a425-ae4e-473b-904b-0dc556433d17","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":"a7a927a5-0618-4053-999c-a2d83f285426","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":"9a1781ca-e026-4f0f-bd60-48441e564f41","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":"d885a002-d75a-47c8-a100-16846861d0a9","block_type":"box","text":"security.","page_number":118,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"c335469a-0425-4281-948d-5c10f1e7b6a3","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":"e74cc06b-4500-4628-b784-26ab18ae231e","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":"9e3a48bc-a46a-4e7c-bbc2-34c9018c448c","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":"90a330f8-f56a-4b25-8ff7-147a437116f0","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":"dfec6868-8f4d-49af-8069-1a6ba3ad1f29","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":"b80c791d-1f39-4baa-9673-ad7c289f5639","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":"819befbb-5b86-49cd-bbb3-8ba11fcd42a9","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":"5d406d78-2708-4c95-a1b3-fb0d5cb69a37","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":"50a3a7c1-0cff-4ff5-aeba-59fb9b0667d3","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":118,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"8abece16-2d56-419c-8e0b-e1c234ef154f","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":"381822ca-9a1d-4810-a555-0a5fbd8f7425","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":"cd8d4a04-f1db-4af6-9341-ec3a2a08d1f8","block_type":"box","text":"II-80","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bbf7ffd2-fe11-4d46-a18b-f1685c742120","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"977a41bd-9d31-4ba2-8a27-306de1854e4a","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":"c1c1fe77-28f9-4360-85df-2b76228e16b6","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":"007d638d-13e1-4bdf-a5aa-2e96a943974c","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":"7f5f59cf-5be1-480f-9fce-1b7563be8601","block_type":"box","text":"intervals.","page_number":119,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"3de492cb-ec70-4532-9b9f-52a152d2fd7d","block_type":"box","text":"Fur ther, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":119,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"216e8dd3-ebf7-43d5-b911-a039cc647830","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":"25f11882-2578-4f5c-ac8f-e448304da684","block_type":"box","text":"por tfolio 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":"a131c427-ed53-4033-8fba-29e82e33795f","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":"5d27076f-2a92-4fb6-b481-dc6e333e7578","block_type":"box","text":"exposure to zero coupon securities.","page_number":119,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"7dbb01a8-0137-4b56-939e-75893b9d7004","block_type":"box","text":"In addition to the above-described risks, there are cer tain other risks related to investing in zero coupon","page_number":119,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"3182ac3a-09aa-4e2f-b607-9b992878cbe9","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":"89b37123-092d-4988-9d2e-6dc534b3142d","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":"3e97807b-63a1-44e1-ba0a-c958d25fe345","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s por tfolio.","page_number":119,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"86802f0c-94e5-4ff6-ac18-28d055e9bda0","block_type":"box","text":"Suitability. (All Funds)","page_number":119,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"2491fee9-9ddc-4de2-9e2a-bf0924afa576","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":"06d112ef-d481-4b90-8111-8a4b363acedd","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":"0755220e-5053-45f1-8a09-aff879ac959f","block_type":"box","text":"investment program. The suitability for any par ticular investor of a purchase of shares in a Fund will depend upon,","page_number":119,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"cb1c9029-85cd-4f1b-ac83-b57e2771fe0c","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":"adc8112d-3f64-45f2-8397-14e4be415457","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":"14685abe-2b28-4104-972d-c2a80cc33a6a","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":119,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"2582137b-0aa3-49b8-924e-1478d09bfe58","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":"6ebb4d17-77c4-4663-92f8-a2c919fee6b5","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":"cfff8154-415a-48d0-84e3-e23e2b63d32f","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":"569d596b-e2ba-4d87-b7b7-f05e905d0981","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":"add3bfb5-3bfd-4efa-a031-69698dbf36e0","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":"a6780b71-328a-445a-992a-089c774f5530","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quar ter of the taxable year, (i) at least","page_number":119,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"0778d42e-97e2-4da2-85e6-51fac02dec99","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":"d9cdcd0e-f7e5-458e-9ffb-98262c7b98b1","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":"66f668aa-62f8-42ac-8609-6ccaea862e44","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":"066594bc-a3c7-46c3-b118-2138f67b211f","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":"c76d4cfd-5e57-4300-9d63-df5add2e4bfd","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":"492452b6-0037-4b36-89db-9e84bdd58b17","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":"45d5724d-4d48-400c-a4cb-168ea9b014d6","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded par tnerships","page_number":119,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"8ef7ae56-146f-4cc5-99c0-23d48ac1fafb","block_type":"box","text":"(","page_number":119,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"4be66c17-b10b-459f-9eda-39b0263c8c51","block_type":"box","text":"i.e.","page_number":119,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"51cdd4f3-ebaf-4cfe-87ab-7f77912a915a","block_type":"box","text":", par tnerships 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":"c79fea5c-4700-4fe0-a091-96250f371ea7","block_type":"box","text":"par tnerships 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":"5f9fd9e4-b500-4e34-8dfc-89cd2823c1cb","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":"0b728d94-580e-40ae-8ac5-e7060f79b2ce","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":"e5f8f393-74e9-42fe-9a9c-711b33cbbf87","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":"5b2fca91-ef6c-4a81-a044-421897f4cceb","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":"484cf6a1-7e75-44ae-8e2f-cb7564c27c80","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":"df93c936-73ae-4557-bd60-83f1ce7d7acb","block_type":"box","text":"regarded as the sole issuer.","page_number":119,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"76565f1b-0437-4b79-9e36-6352a691583e","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":"432d46df-5646-4d44-8e29-3704f435e483","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":"94d80b5e-cd89-477d-8394-bc6bd4ddde7a","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":"8c04210a-aac8-4d0f-9c08-2e218c2684c9","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":"84b40b9e-1c24-46d9-8f85-6bf715c1eae9","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":"23fde98d-e052-48dc-9c2c-eb58907f183b","block_type":"box","text":"75% of its total assets.","page_number":119,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"146153c1-5044-4e2a-8b80-76acf5bd7ad6","block_type":"box","text":"II-81","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"19926392-2c2f-4a4d-8463-41fbb69feecc","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e5eb0678-183e-4499-a75d-e50086d47208","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":120,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"559fb1bd-62cc-48a5-8317-004fae48706c","block_type":"box","text":"Directors and Officers","page_number":120,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"f24ad40b-de6b-4373-8f84-a25bd91e2793","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":"e6916daf-8270-4732-9293-7ec312e0e21c","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":"456f1f56-05ab-4b61-b4d6-a6999bb7f92d","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Par t I of each Fund’s SAI for biographical and","page_number":120,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"66723dd9-cd8d-4cba-9f1a-72b5cd75fa83","block_type":"box","text":"cer tain 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":"681d4d80-5268-4cc7-a7df-b9f29ccbac68","block_type":"box","text":"Management Arrangements","page_number":120,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"a6c0c118-45fb-4380-9be8-27397fe9532c","block_type":"box","text":"Management Services.","page_number":120,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"1ce1fa81-585e-4fd8-ba34-01d3c2cf9c43","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":"795b75a6-65b9-4207-8840-541def596090","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":"80284ab7-0a5e-4aff-a2dc-fcecad8081dd","block_type":"box","text":"por tfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":120,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"a551926e-563d-4f74-a8a7-7a0ce27ed712","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a par ticular security rests with the Manager. The Manager","page_number":120,"box":{"x":68,"y":242,"width":832,"height":11}},{"id":"2df42bf3-08b0-4d26-af9b-a6ceba3f10cb","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":120,"box":{"x":70,"y":257,"width":801,"height":11}},{"id":"a434eb99-44f7-45fe-aa2c-39b84a2999f6","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":120,"box":{"x":69,"y":272,"width":370,"height":11}},{"id":"e1ae46cf-2450-41dd-85e2-7c1e67c71477","block_type":"box","text":"Each Feeder Fund invests all or a por tion of its assets in shares of a Master Por tfolio. To the extent a Feeder","page_number":120,"box":{"x":102,"y":295,"width":778,"height":11}},{"id":"c99e7435-a1b7-49c8-b2d4-5b8fdac30152","block_type":"box","text":"Fund invests all of its assets in a Master Por tfolio, it does not invest directly in por tfolio securities and does not","page_number":120,"box":{"x":70,"y":310,"width":800,"height":11}},{"id":"b911a6c4-bf86-4737-ac2c-f4f2329955bd","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":120,"box":{"x":69,"y":325,"width":810,"height":11}},{"id":"3d756a9a-1a90-405a-85b3-25737542612f","block_type":"box","text":"Management Fee.","page_number":120,"box":{"x":102,"y":348,"width":126,"height":11}},{"id":"6199d533-f307-4237-8374-0778a87f275e","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":120,"box":{"x":235,"y":348,"width":646,"height":11}},{"id":"a9fbf11e-0294-4b5e-a0b2-52f06f0a401b","block_type":"box","text":"the Manager receives for its services to the Fund monthly compensation at an annual rate based on the average daily","page_number":120,"box":{"x":68,"y":363,"width":841,"height":11}},{"id":"ac16b184-6a31-444f-b13d-dc4358f31a6c","block_type":"box","text":"net assets of the Fund. For information regarding the fees paid by your Fund to the Manager for the Fund’s last three","page_number":120,"box":{"x":69,"y":378,"width":833,"height":11}},{"id":"165ab81d-f36e-48a8-b4f2-4d067b186646","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":120,"box":{"x":68,"y":393,"width":746,"height":11}},{"id":"4e94ad36-7718-4725-bc71-3d05b6a9bbe6","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":120,"box":{"x":70,"y":408,"width":825,"height":11}},{"id":"25f65eae-c1eb-4e86-accc-a35cc1f101cf","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":120,"box":{"x":102,"y":431,"width":774,"height":11}},{"id":"cb466860-6c89-44b3-86e6-175cfe5eb560","block_type":"box","text":"management services and to pay all compensation of and furnish office space for officers and employees of a Fund","page_number":120,"box":{"x":69,"y":446,"width":826,"height":11}},{"id":"102dfdf3-ba02-475f-9855-57f15edaad92","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":120,"box":{"x":70,"y":461,"width":820,"height":11}},{"id":"05af71ce-b403-4d00-bf59-a536822c6cbe","block_type":"box","text":"the fees of all Directors of the Fund who are interested persons of the Fund. Each Fund pays all other expenses","page_number":120,"box":{"x":68,"y":476,"width":797,"height":11}},{"id":"5950d78c-80ee-450e-8868-9a7964777652","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":120,"box":{"x":70,"y":491,"width":830,"height":12}},{"id":"9b6672f7-ed72-4a9b-a956-964f7ce1d39f","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":120,"box":{"x":69,"y":506,"width":802,"height":12}},{"id":"b3cb7b40-b455-463f-b93c-296508966da3","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":120,"box":{"x":70,"y":521,"width":809,"height":12}},{"id":"36aa7a05-2a55-4bd8-af9b-760703b2e71f","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":120,"box":{"x":69,"y":537,"width":838,"height":11}},{"id":"38afd512-567e-457f-bc53-33b3953986ab","block_type":"box","text":"of registering the shares under Federal, state or foreign laws; fees and expenses of Directors who are not interested","page_number":120,"box":{"x":69,"y":552,"width":830,"height":11}},{"id":"04eb540c-da91-49af-8174-258b6f18b099","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":120,"box":{"x":70,"y":567,"width":784,"height":11}},{"id":"970245bd-5614-4e91-b82d-93ca2f27408d","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":120,"box":{"x":69,"y":582,"width":767,"height":11}},{"id":"ba754e36-e312-49cd-b701-2709fe304ce3","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":120,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"c8ec608f-93ec-4857-9e1f-29d80a8ce77d","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), The Bank of New York Mellon (“BNY Mellon”) or JPMorgan","page_number":120,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"1354aa15-94c9-4311-84bb-1db08d696e4c","block_type":"box","text":"Chase Bank, N.A. (“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as applicable, and","page_number":120,"box":{"x":69,"y":627,"width":814,"height":12}},{"id":"3d6392cd-6f33-4af1-af12-fa4decc657f8","block_type":"box","text":"each Fund. Each Fund pays a fee for these services. The Distributor pays cer tain promotional expenses of the Funds","page_number":120,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"339bf501-5402-4398-9448-f05d2b807e80","block_type":"box","text":"incurred in connection with the offering of shares of the Funds. Cer tain expenses are financed by each Fund pursuant","page_number":120,"box":{"x":70,"y":658,"width":839,"height":11}},{"id":"59c7196d-7f26-4c8e-ac16-1b964f6a1c5f","block_type":"box","text":"to distribution plans in compliance with Rule 12b-1 under the Investment Company Act. See “Purchase of Shares —","page_number":120,"box":{"x":68,"y":673,"width":828,"height":11}},{"id":"f45acc5a-ecf2-4621-842b-0a2810f1102b","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans.”","page_number":120,"box":{"x":70,"y":688,"width":350,"height":11}},{"id":"04fdd0b7-1975-410b-8654-087d3c0bbc94","block_type":"box","text":"Sub-Advisory Fee.","page_number":120,"box":{"x":102,"y":711,"width":124,"height":11}},{"id":"2cf37540-d4d7-453f-9669-ea99e4ee828c","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":120,"box":{"x":232,"y":710,"width":643,"height":12}},{"id":"0a9a119b-9cb2-4731-bdab-4c4ea054a66a","block_type":"box","text":"“Sub-Advisory Agreements”) with the sub-adviser or sub-advisers identified in each such Fund’s Prospectus (the “Sub","page_number":120,"box":{"x":70,"y":726,"width":839,"height":11}},{"id":"827c6492-7dc0-4971-a8a9-fb9a9fa9042c","block_type":"box","text":"Adviser”) pursuant to which the Sub-Adviser provides sub-advisory services to the Manager with respect to the Fund.","page_number":120,"box":{"x":68,"y":741,"width":830,"height":11}},{"id":"9ee5fab3-abe4-4edf-a2e7-e25aa8be6831","block_type":"box","text":"Organization of the Manager.","page_number":120,"box":{"x":102,"y":763,"width":204,"height":12}},{"id":"cb39124c-7737-4df2-91b7-73bdf962feb2","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":120,"box":{"x":313,"y":763,"width":560,"height":12}},{"id":"db0eb4d0-9627-4d98-be98-3ffa01084458","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":120,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"635eebc6-ec0b-4b6d-99c6-c2cc9949f6be","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":"1d97d674-cd5b-49cb-831d-872dfd57969d","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":"6f66fd10-9f27-4da2-b94d-9e7467311422","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":"60aac8d5-f9b1-4999-abdb-8505cab8369f","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":"3ca8eda8-0631-46f9-96ac-9efe59901726","block_type":"box","text":"Duration and Termination.","page_number":120,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"595303f2-eb56-4b52-998e-4cb73f975541","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":"e6c73782-e31a-466f-b7c0-abebfd983d9b","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":"96ba569f-6140-48c0-a1e5-658797545bc9","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":"d0fb97d7-604f-46d8-a962-0a80329c67da","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not par ties to such agreement or interested persons (as defined","page_number":120,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"723aa642-c0a4-4893-a02a-0d18143b7447","block_type":"box","text":"II-82","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"98467591-4dd1-4c74-8c46-0c31c7222814","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"05dfb23e-99a1-47c5-b8ad-e81cf2684131","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":121,"box":{"x":70,"y":45,"width":778,"height":11}},{"id":"6352464a-e508-402e-a318-07952aa8a681","block_type":"box","text":"assignment and may be terminated without penalty on 60 days’ written notice at the option of either par ty thereto or","page_number":121,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"04cb68f3-b343-4307-ad46-8bb5b74842df","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":121,"box":{"x":69,"y":75,"width":388,"height":11}},{"id":"ad9600b5-8ccb-4adb-9710-c538f6b60b00","block_type":"box","text":"Other Service Arrangements","page_number":121,"box":{"x":69,"y":105,"width":205,"height":11}},{"id":"e6f9786a-1f87-41ee-8fca-d98c7514e56c","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":121,"box":{"x":101,"y":128,"width":338,"height":9}},{"id":"182149b6-d893-4541-b026-d85670a6a285","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":121,"box":{"x":446,"y":128,"width":439,"height":11}},{"id":"81807b45-7a63-4040-87e4-8ab657972faf","block_type":"box","text":"(the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus and Par t I of the Fund’s","page_number":121,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"9681ad82-e79f-4380-ac9b-3e378183ba3d","block_type":"box","text":"SAI (each an “Administrator”). For its services to a Fund, the Administrator receives monthly compensation at the","page_number":121,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"9c979aab-e1ab-4e84-a29b-41f006ff2db1","block_type":"box","text":"annual rate set for th in each applicable Fund’s Prospectus. For information regarding any administrative fees paid by","page_number":121,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"d2d56de3-7af8-4105-8aea-b0ea62ab1ac3","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":121,"box":{"x":68,"y":188,"width":738,"height":12}},{"id":"a2bdc134-22c1-4395-9eba-849eac9e9048","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":121,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"f973bee3-4957-4ee9-a60b-7eeea3f80d17","block_type":"box","text":"that Fund’s SAI.","page_number":121,"box":{"x":68,"y":219,"width":113,"height":8}},{"id":"f0e32303-f145-44c6-9642-75a184207bf6","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":121,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"9e3ceacf-43a5-4de5-b961-c04df6b7b231","block_type":"box","text":"cer tain administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and","page_number":121,"box":{"x":69,"y":256,"width":800,"height":12}},{"id":"145f698c-fd20-4df8-9b85-b3fe9a15fb04","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. Each Administrator is also","page_number":121,"box":{"x":70,"y":271,"width":809,"height":12}},{"id":"3fc5f719-4f48-4937-a5ba-f641c7a3cf06","block_type":"box","text":"obligated to pay, or cause its affiliates to pay, the fees of those officers and Directors of the Fund who are affiliated","page_number":121,"box":{"x":69,"y":286,"width":826,"height":12}},{"id":"a79509e0-f99d-4293-99f0-bbc63cb9240c","block_type":"box","text":"persons of the Administrator or any of its affiliates.","page_number":121,"box":{"x":70,"y":302,"width":362,"height":11}},{"id":"5d70f8c6-ce37-46d4-822d-a25d86780512","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":121,"box":{"x":102,"y":324,"width":390,"height":12}},{"id":"9df55596-94ed-4c8f-a270-4f6f4f55ec28","block_type":"box","text":"Unless earlier terminated as described below, each","page_number":121,"box":{"x":499,"y":325,"width":364,"height":10}},{"id":"caa6f30e-259b-40b6-b0ed-43a91c230e8e","block_type":"box","text":"Administration Agreement with BlackRock will continue for an initial two year period and from year to year if approved","page_number":121,"box":{"x":68,"y":339,"width":832,"height":12}},{"id":"4b953757-2412-4813-ade3-ff507e3d4428","block_type":"box","text":"annually (a) by the Board of Directors of each applicable Fund or by a vote of a majority of the outstanding voting","page_number":121,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"be945f82-bf14-44ec-9ae0-b294f3f8f58d","block_type":"box","text":"securities of such Fund and (b) by a majority of the Directors of the Fund who are not par ties to such contract or","page_number":121,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"e61b0bd6-ee64-4324-88c1-a0d6333f56cd","block_type":"box","text":"interested persons (as defined in the Investment Company Act) of any such par ty. Such contract is not assignable","page_number":121,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"92f86461-1cf3-4864-a5fe-536a5d8fa4dd","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either par ty thereto or by the vote of the","page_number":121,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"9047bd49-6294-40fd-b46b-c2ff81f36818","block_type":"box","text":"shareholders of the Fund.","page_number":121,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"a2ff0ce5-e13f-4139-8c98-8c1d7201cf1a","block_type":"box","text":"Transfer Agency Services.","page_number":121,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"fc0dba89-b8eb-4625-89f9-dd20965ad1b0","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":"70711143-07b8-400b-bc5a-b51a0f17f453","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":"e3c53caa-d3ea-413e-8750-c1b5756492c1","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":"8af344cc-88a8-4f14-b259-6ab9bd6274c5","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":121,"box":{"x":68,"y":483,"width":792,"height":11}},{"id":"b67debfa-f49c-4949-a30e-ef82f3b0d6dd","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":121,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"762dacb5-e2f5-4d3c-8c86-e7bb44696f4f","block_type":"box","text":"Transfer Agent a fee for the services it receives based on the type of account and the level of services required. Each","page_number":121,"box":{"x":68,"y":513,"width":839,"height":12}},{"id":"1f67a398-427e-4a4a-807a-69a191d7009d","block_type":"box","text":"Fund reimburses the Transfer Agent’s reasonable out-of-pocket expenses and pays a fee of 0.10% of account assets","page_number":121,"box":{"x":70,"y":528,"width":831,"height":12}},{"id":"5df915d3-5b5f-4603-bafe-89f18ab11a5f","block_type":"box","text":"for cer tain accounts that par ticipate in cer tain fee-based programs sponsored by the Manager or its affiliates. For","page_number":121,"box":{"x":68,"y":543,"width":813,"height":12}},{"id":"448e4dff-9bf4-4afe-a96b-bd415de27f56","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":121,"box":{"x":70,"y":559,"width":836,"height":11}},{"id":"ab6e96ec-762c-4d80-965d-0753b636d33c","block_type":"box","text":"by the Transfer Agent and any other account representing the beneficial interest of a person in the relevant share","page_number":121,"box":{"x":69,"y":574,"width":806,"height":11}},{"id":"e1ab0e45-2133-46b3-b6ee-d52d89bed164","block_type":"box","text":"class on a recordkeeping system.","page_number":121,"box":{"x":69,"y":589,"width":238,"height":11}},{"id":"ffce8a92-d7cd-4d31-8903-0a8c318d2007","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":121,"box":{"x":102,"y":612,"width":338,"height":11}},{"id":"14681f02-aae8-4957-957e-01ebad2cc9e3","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":121,"box":{"x":446,"y":612,"width":441,"height":10}},{"id":"96670bd4-f8bb-445f-9a94-737f6932c44e","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":121,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"16747b8b-229c-4493-97e5-2ea23a633ee8","block_type":"box","text":"audits the Fund’s financial statements. Please see the inside back cover page of your Fund’s Prospectus and Par t I","page_number":121,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"4f16d014-53d6-401a-a6d1-7f109a3057e4","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":"9177a93e-4d21-4706-8c6e-86cb266997f6","block_type":"box","text":"Custodian Services.","page_number":121,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"e93de753-2d2a-4a9d-bbd3-01c0866ed32b","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":"f06f288d-859c-4cf8-96c1-da56f5df426d","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":"2b8f345c-0f6a-455b-ab03-610dd0c97918","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":"db53124f-e31b-4a41-886b-a98a79355385","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":"582cddfd-5512-4689-8e10-c156559a1335","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with cer tain foreign","page_number":121,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"91313cf8-02b7-43cd-aedf-70cc2c1f4b10","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":"6d84aa62-ef97-4e51-8151-c812117b9db3","block_type":"box","text":"cer tain assets.","page_number":121,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"f00b3556-2982-46a3-9279-96b40501da2b","block_type":"box","text":"For cer tain Feeder Funds, the Custodian also acts as the custodian of the Master Por tfolio’s assets.","page_number":121,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"1b8a6912-8aec-42d1-9cd3-e9e503f5b93d","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. With respect to cer tain Funds, on a monthly","page_number":121,"box":{"x":102,"y":816,"width":803,"height":11}},{"id":"7775656c-14e3-49a2-8358-9691156db7f7","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":121,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"f4f15bb6-f16a-47d6-8dac-892abdb1106f","block_type":"box","text":"credit”) or a charge based on that net amount. With respect to such Funds, the custodian fees, including the amount","page_number":121,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"51323555-5972-4f7f-9584-aef2b756183d","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":"a9e90dbc-4cb4-45b6-ad4e-8f274d046cc8","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":"ac5313bb-0f3a-4d0a-b507-cf556e36422e","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":"9f86f6cd-b149-4e7c-adc7-b65cb7df3fd0","block_type":"box","text":"Fund.","page_number":121,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"cfe61270-4096-4321-9ce1-9fdfb040fa5d","block_type":"box","text":"II-83","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"11d9d392-6ab2-4a11-8bfd-167a87210163","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":121,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4acf7a20-3bb5-423e-b594-c051f4adf20c","block_type":"box","text":"Accounting Services.","page_number":122,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"014e32d6-0aa6-41a8-b907-0aec25ba599d","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":"4ea65222-661f-4ac9-acc8-2c5285dd0202","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides cer tain accounting and administrative services to the Fund. Each","page_number":122,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"5006ddd2-691c-48c0-aa8d-cf0182c1cd03","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":"d4b831ab-a885-4da2-889b-6554eb8aa1c6","block_type":"box","text":"Master LLCs.","page_number":122,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"655c307e-4ac8-4bb3-ab3a-3647a35bac85","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":"0418273e-c783-4692-b92d-6875a616905d","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Par t I of each Fund’s SAI for information on the","page_number":122,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"15d75d9c-75c9-4b91-8f92-a08efa270b2e","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":"a1631d04-5528-4f0d-a419-c808e04a2c36","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":122,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"59b0da69-72bc-4a11-88e0-1f66c7f508df","block_type":"box","text":"Distribution Expenses.","page_number":122,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"46f129af-fdd6-4d8b-9be1-4e0ca6583cfe","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":"9e2613be-873e-4751-8d4f-5719a85b4878","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). 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shareholders, prospective shareholders, consultants,","page_number":126,"box":{"x":69,"y":299,"width":818,"height":11}},{"id":"b8067106-55f4-44b5-9331-ad8dd3852376","block_type":"box","text":"and third-par ty data providers upon request, as soon as such data is available.","page_number":126,"box":{"x":69,"y":314,"width":562,"height":11}},{"id":"91498c7d-62a8-4f67-a845-2f34058702e4","block_type":"box","text":"Contact Information.","page_number":126,"box":{"x":102,"y":337,"width":144,"height":9}},{"id":"05d23e17-d06f-4b73-a1c8-4cc176efe19e","block_type":"box","text":"For information about por tfolio holdings and characteristics, BlackRock fund shareholders","page_number":126,"box":{"x":253,"y":337,"width":639,"height":11}},{"id":"0e589210-b1f6-49e9-98b9-c34e0e26b764","block_type":"box","text":"and prospective investors should call the number set out on the back cover of the 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Such other funds or accounts may offer exposure to strategies that are identical or","page_number":127,"box":{"x":69,"y":536,"width":808,"height":11}},{"id":"b0712b24-8623-4947-9a18-a8252f250f31","block_type":"box","text":"substantially similar to those of a Fund but with different fees and expenses, governance and structures, and/or","page_number":127,"box":{"x":69,"y":551,"width":803,"height":11}},{"id":"5d0e0bdd-11f0-4fba-989a-fef24e3adf8b","block_type":"box","text":"services provided by BlackRock","page_number":127,"box":{"x":69,"y":566,"width":224,"height":11}},{"id":"121f8649-2ae4-4013-a2f4-85de1b74d1be","block_type":"box","text":".","page_number":127,"box":{"x":295,"y":574,"width":2,"height":1}},{"id":"234f1924-7e2c-4c6a-9efa-30895d46f0e7","block_type":"box","text":"BlackRock is also a major par ticipant in the global currency, equities, swap and fixed","page_number":127,"box":{"x":304,"y":566,"width":603,"height":11}},{"id":"6353fabd-65ac-4ba4-be00-4d4eab5cedee","block_type":"box","text":"income markets, in each case, for the accounts of clients and, in some cases, on a proprietary basis. 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Such transactions, par ticularly in","page_number":127,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"56e37587-b489-4885-84f4-535174a75f01","block_type":"box","text":"respect of most proprietary accounts or client accounts, will be executed independently of a Fund’s transactions and","page_number":127,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"7e462525-a6c7-445d-9de5-48552d5d66eb","block_type":"box","text":"thus at prices or rates that may be more or less favorable than those obtained by the Fund.","page_number":127,"box":{"x":68,"y":680,"width":652,"height":11}},{"id":"51b4a52b-8c42-4ebb-9bf4-4df3f9725bb3","block_type":"box","text":"In addition, the por tfolio holdings of cer tain BlackRock-advised investment vehicles managed in an identical or","page_number":127,"box":{"x":102,"y":702,"width":787,"height":12}},{"id":"2abb29c2-5d5d-4a61-8da2-0448c2e6b9f0","block_type":"box","text":"substantially similar manner as cer tain Funds are made publicly available on a more timely basis than the applicable","page_number":127,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"c9ec73a0-03fc-4398-bce0-f852fec9521c","block_type":"box","text":"Fund. In some cases, such por tfolio holdings are made publicly available on a daily basis. 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In some cases, this system may adversely affect the size or price of the assets purchased or sold for a","page_number":127,"box":{"x":69,"y":831,"width":835,"height":11}},{"id":"7ff0d589-c7f2-49a4-b888-eced70e03d96","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":127,"box":{"x":70,"y":846,"width":817,"height":11}},{"id":"90408bc1-25a5-4207-a908-ae8a04e82511","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, par ticularly, but","page_number":127,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"df793e5b-a8da-4560-ba58-53962e4653a0","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":127,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"16d4797c-a295-4ab3-8657-a0ae7225753d","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":127,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"72365a47-8384-47c9-8cdc-c6b5c7bb6d98","block_type":"box","text":"information that is also used to suppor t decisions for other accounts. When BlackRock implements a por tfolio","page_number":127,"box":{"x":70,"y":906,"width":785,"height":11}},{"id":"b2456e04-fcef-4025-9bc7-d03e5a8b4368","block_type":"box","text":"II-89","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"10a6b001-ef0f-45dc-a109-8068ee00a832","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":127,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"df73e0e9-63e0-4526-b56a-44c5982d1634","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":128,"box":{"x":69,"y":45,"width":767,"height":11}},{"id":"1f523f59-1dbc-4a53-9fce-7088677a5ea3","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":128,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"dba38d4e-df7e-4983-8523-b07b54b6714a","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":128,"box":{"x":68,"y":75,"width":827,"height":11}},{"id":"a772dde5-da37-4072-9792-06b88c5d55e4","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in cer tain cases, elect to implement internal policies and","page_number":128,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"e3585b0f-51e1-4e79-af0e-e402a51e0b54","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in cer tain","page_number":128,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"4ebae649-5aab-4ccb-9d79-4f5896735e5a","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":128,"box":{"x":69,"y":120,"width":781,"height":12}},{"id":"5733c5c3-2a82-460d-bab1-d778b95af320","block_type":"box","text":"Conflicts may also arise because por tfolio decisions regarding a Fund may benefit other accounts managed by","page_number":128,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"8ffbc7cc-5398-40b9-a9b4-d1a3a086a1a7","block_type":"box","text":"BlackRock. For example, the sale of a long position or establishment of a shor t position by a Fund may impair the","page_number":128,"box":{"x":70,"y":150,"width":809,"height":12}},{"id":"105cfdc6-ace1-46f4-811e-e3071450c646","block_type":"box","text":"price of the same security sold shor t by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":128,"box":{"x":70,"y":166,"width":805,"height":11}},{"id":"f5f2e140-435c-4c20-bb09-31f10398d953","block_type":"box","text":"purchase of a security or covering of a shor t position in a security by a Fund may increase the price of the same","page_number":128,"box":{"x":70,"y":181,"width":797,"height":11}},{"id":"2f0f5913-3163-40eb-8f97-1ed8b7386120","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":128,"box":{"x":69,"y":196,"width":573,"height":11}},{"id":"395efe8f-237f-4d55-a257-3be4db362690","block_type":"box","text":"BlackRock, on behalf of other client accounts, on the one hand, and a Fund, on the other hand, may invest in or","page_number":128,"box":{"x":102,"y":218,"width":797,"height":12}},{"id":"33215e2b-abbf-46e9-a6e7-426b4fa30955","block_type":"box","text":"extend credit to different par ts of the capital structure of a single issuer. BlackRock may pursue rights, provide","page_number":128,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"c9db5367-1fd3-4521-a8a4-d3e3bb1e42b1","block_type":"box","text":"advice or engage in other activities, or refrain from pursuing rights, providing advice or engaging in other activities, on","page_number":128,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"d2a08d7c-890e-4007-b8db-30e5b19258fd","block_type":"box","text":"behalf of other clients with respect to an issuer in which a Fund has invested, and such actions (or refraining from","page_number":128,"box":{"x":69,"y":264,"width":812,"height":11}},{"id":"6f5ad43e-62dc-4827-90fa-d35161de0d5c","block_type":"box","text":"action) may have a material adverse effect on the Fund. In situations in which clients of BlackRock (including the","page_number":128,"box":{"x":69,"y":279,"width":803,"height":11}},{"id":"06e69baa-edb8-4d23-8a24-18a8e5504600","block_type":"box","text":"Funds) hold positions in multiple par ts of the capital structure of an issuer, BlackRock may not pursue cer tain","page_number":128,"box":{"x":70,"y":294,"width":783,"height":11}},{"id":"766a46d2-0780-43bb-8711-6c0a576328c7","block_type":"box","text":"actions or remedies that may be available to a Fund, as a result of legal and regulatory requirements or otherwise.","page_number":128,"box":{"x":69,"y":309,"width":818,"height":11}},{"id":"3875df87-0cf7-4b03-b231-6a604941847c","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":128,"box":{"x":70,"y":324,"width":777,"height":11}},{"id":"a9e70f72-9003-4320-a4fc-ec7c8698970a","block_type":"box","text":"par ticular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":128,"box":{"x":70,"y":339,"width":780,"height":12}},{"id":"de692724-bc0e-4017-b3d0-eecb5e398e8c","block_type":"box","text":"business units or por tfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":128,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"74355759-50fe-44ac-b01c-2b94b928eb91","block_type":"box","text":"situated holders of loans or securities rather than, or in connection with, taking such actions itself on behalf of the","page_number":128,"box":{"x":69,"y":370,"width":817,"height":11}},{"id":"ea05b63f-c106-4378-99af-9aa20d11835d","block_type":"box","text":"Funds.","page_number":128,"box":{"x":70,"y":385,"width":44,"height":9}},{"id":"c89ce2fa-88f2-4832-90d2-bd877453569e","block_type":"box","text":"In addition, to the extent permitted by applicable law, cer tain Funds may invest their assets in other funds","page_number":128,"box":{"x":102,"y":407,"width":755,"height":12}},{"id":"4efd970d-ad48-4502-849e-464e3c73913a","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same por tfolio managers, which could","page_number":128,"box":{"x":69,"y":423,"width":836,"height":11}},{"id":"f0f9ac28-c542-4db9-a865-d13a02a2bab7","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":128,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"e9dd8dd3-5f3d-4aac-a5c1-b03ff6c3b569","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including por tfolio managers.","page_number":128,"box":{"x":69,"y":453,"width":679,"height":11}},{"id":"769bc7df-e0e9-490f-9548-d63f28030a5c","block_type":"box","text":"Third par ties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":128,"box":{"x":101,"y":476,"width":760,"height":11}},{"id":"13f66286-57d8-45ab-a21c-d5a9a9fb9337","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":128,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"97c2d487-a7b5-4adc-b7fc-3cd643549baa","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":128,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"505c7989-5253-4524-9276-56a8b15857bc","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":128,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"fc27d7c3-bb29-43c8-a5e9-12adf36a6c63","block_type":"box","text":"to retain such third par ties to provide services to the Fund.","page_number":128,"box":{"x":68,"y":536,"width":421,"height":11}},{"id":"932afeaf-a48c-4976-8eb6-02fd96d7cecc","block_type":"box","text":"In cer tain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to another","page_number":128,"box":{"x":102,"y":559,"width":794,"height":11}},{"id":"6f63ca8a-784b-4648-a513-5b59319263f6","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":128,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"86c45295-4604-40d6-985e-9eea459e8045","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":128,"box":{"x":70,"y":589,"width":797,"height":11}},{"id":"f6f505ee-fe4a-4935-8dd7-37b81808f0b4","block_type":"box","text":"based on each par ty’s investment objectives and guidelines, subject to applicable law and regulation. There may be","page_number":128,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"124f91a9-455a-4803-b2b1-c83dd558b025","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":128,"box":{"x":70,"y":619,"width":780,"height":11}},{"id":"cd9a3eff-e199-4e4f-9200-230e68652afb","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":128,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"ea45e385-bfed-46ec-86a4-f69da21d8af5","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":128,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"3a3bbec4-0a20-4a2f-8e55-f26ee968bb2d","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":"6c73035b-8398-4233-ab25-23342127c8fd","block_type":"box","text":"and those activities may have an adverse effect on the Fund. As a result, prices, availability, liquidity and terms of the","page_number":128,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"0932d06b-af89-45c5-bf74-77e81aa944f8","block_type":"box","text":"Fund’s investments may be negatively impacted by the activities of BlackRock or its clients, and transactions for the","page_number":128,"box":{"x":70,"y":702,"width":827,"height":12}},{"id":"c3028022-1420-4c45-b3de-952343eb9c4e","block_type":"box","text":"Fund may be impaired or effected at prices or terms that may be less favorable than would otherwise have been the","page_number":128,"box":{"x":70,"y":717,"width":828,"height":12}},{"id":"2df8d53c-1841-42a6-a7cc-6e4f3a021f3d","block_type":"box","text":"case.","page_number":128,"box":{"x":69,"y":735,"width":37,"height":7}},{"id":"370e6216-9d1e-4b8a-ac2c-d588284d31c5","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":128,"box":{"x":101,"y":755,"width":791,"height":11}},{"id":"0c4e38c7-b3ac-4d6e-b1c3-790b849918ac","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":128,"box":{"x":70,"y":771,"width":824,"height":11}},{"id":"b15f2725-19c7-4614-be3f-21f0b11208b7","block_type":"box","text":"manages or advises. It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":128,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"39614d76-d98f-4352-adff-01eeaa2db056","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":"ab2e9cb1-3c7b-4056-8239-f8d74bf01f0d","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":"23803b55-a8ea-4262-80f1-3e0198c5a746","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":"6f59475c-a9ae-4806-aa81-1e18d6777ec2","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":"15f6f7e1-96f8-4151-8b92-1a45c29e99e2","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":"1710b0a6-3d47-4d22-9302-fa885fa50358","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":"77f7b6a4-e546-46e4-9b21-9be7f8e65802","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend cer tain","page_number":128,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"8f16b806-9d04-4acd-af9b-cdde8d58d30a","block_type":"box","text":"II-90","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c1ea8855-d560-40d4-80b9-2719215414fa","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":128,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"265bb67f-2662-4510-bc79-44334d1a74c2","block_type":"box","text":"types of transactions in cer tain securities or instruments with respect to which BlackRock is per forming services or","page_number":129,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"e4d99078-95cf-4ff5-834b-758e0dd01cd5","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":"036def20-a9c8-4074-94ad-0293004a556c","block_type":"box","text":"accounts and accounts under its management may limit the investment oppor tunities for a Fund in cer tain emerging","page_number":129,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"988484b1-53b7-4306-b0d1-0bf5e9bc6562","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":"c5d88698-e6b3-4eb6-8723-0db0e675f7a4","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":129,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"5b37df3a-e173-412a-b3f7-369bdd32702f","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to cer tain fundamental analysis and","page_number":129,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"d54792b5-1569-4b70-b2bf-b546a63f46f5","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":"6905d452-b3f6-4025-9fef-e4136ae69201","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":"b6fffb3b-6ad0-407f-b1de-0856ae1ecd6d","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":"84aef581-d4c2-43c8-ba66-597f51abef1e","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":"bd54f378-fb01-4f97-973f-83beeb32e4b7","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":"6b77d399-bcf1-407f-abe0-b6cbc451f21a","block_type":"box","text":"proprietary activities or por tfolio 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":"730c474f-76f7-449b-a7c9-c51b241d56e1","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":"4512c54d-e8a9-41bd-b1ee-6487be5f768d","block_type":"box","text":"managing a Fund.","page_number":129,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"b80d4612-c169-49a1-a744-1cd265b6df42","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":"73ef3def-714b-428d-ab44-6b5d0d510247","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":"9a6343cf-81c4-4ab5-a6dd-e0080646a3e8","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":"d297400e-a1bf-4ab3-9826-79f107c73992","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":"bf67f877-d024-4952-a228-f2458d68eaee","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":129,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"fa0754d3-9476-4f83-936e-35c3d0ce55e7","block_type":"box","text":"In addition, cer tain principals and cer tain employees of a Fund’s investment adviser are also principals or","page_number":129,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"652f188a-4d22-4352-9c6f-4105d4861571","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":"6f8cbff6-ca55-43a9-b646-9968b4defcc8","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":"58e8efb0-e996-412a-8cdf-f6948c76dc0a","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":"b2214666-9f1c-406c-bfdb-170247402f42","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":"b42beee6-6553-4311-a95f-70c8a98023cf","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":"95e1eacd-4b10-4f0a-94b3-5c8212ad093c","block_type":"box","text":"as the counterpar ty, principal or issuer. In such cases, such par ty’s interests in the transaction will be adverse to the","page_number":129,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"fc33633c-5fcc-43de-8db3-07e58acd7c37","block_type":"box","text":"interests of the Fund, and such par ty may have no incentive to assure that the Fund obtains the best possible prices","page_number":129,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"6a0a70b8-b06a-44ac-b9cf-096d121d3650","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":"052c5e64-daa8-42b5-925e-2aa39be95486","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":129,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"9fda7f39-d940-4761-b804-3a2e04a6de93","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":"9be28162-08b3-4a00-88e5-103c5a84d35e","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the per formance of the Fund.","page_number":129,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"7714fcbe-fad9-4d6f-80ff-3b8d466cdaf9","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the per formance of","page_number":129,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"c7e4d97b-41a1-4553-8f21-075f32afa947","block_type":"box","text":"cer tain 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":"b78ab9ad-7f79-4e41-9a3b-8840db915726","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":129,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"f4670be6-bbb0-4268-8f94-b4d07c3ba20e","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":"f6964e91-b30a-429f-b9b0-a14b7952514f","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":"4d4808a1-6af8-41c3-b1f1-072d313e0085","block_type":"box","text":"under management for BlackRock.","page_number":129,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"e5e69889-0337-4a26-9c90-3cf56e7f1723","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":"6a0c6280-8535-434f-ad99-44b53373c6a2","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":"12d782e7-3b2c-4fd4-855e-db009079585f","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":"9af6d8bc-2907-4610-ae6a-232fa6ffe182","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":"cc593853-191c-4fea-8974-830aeedaffe1","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":"10f82fd5-d9e9-48a9-8743-52f263ecfdc6","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":"bcc175e8-fb98-4200-abf8-d8f01a4e4ccf","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":"3eacd780-2ada-4fee-8b35-ce3692ef2a82","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":"01f10978-ab43-4280-8678-f68e8177e11e","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":"c4bc8c8a-6ab4-4bcc-8637-4b6def169b7b","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":"54986538-6469-4133-a5d8-8b118c97100a","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":"e846d917-02e9-458c-8166-c64ec53a511f","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":"1b316dbc-b726-4133-8772-a292b228d441","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":"db67471d-c0a7-4c53-99bd-e2bd9044239f","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":"27569ba0-3f35-4ee6-aefe-7806ab197e5b","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":"7b68a1f4-01ee-45b0-a2dd-cc2a42c349f9","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":"eab89820-00d8-48fc-ab0a-0f3a429e2cc5","block_type":"box","text":"II-91","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"25a2a5a2-7b5b-449d-9b87-6f252359c17a","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":129,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fd7b7ddd-8b21-4d55-98fe-6dd85188040f","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":"a194a767-6298-45e3-99fa-1ccb33865848","block_type":"box","text":"any such fees or other amounts.","page_number":130,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"1c0c77d1-e8be-4842-9232-437d831f840d","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":"06e65d15-b403-4580-81ee-8613a17f31ef","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":"bce491d7-b785-4192-ad2c-cf3309938812","block_type":"box","text":"A Fund will be required to establish business relationships with its counterpar ties based on the Fund’s own","page_number":130,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"dc6c9401-ed5b-4562-9d7b-11d8f85ec68d","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":"a1c787fa-ff86-4c19-904f-03956ec8be28","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterpar ties will rely on the credit of","page_number":130,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"0c02bc3d-db82-4ed2-929b-a10cc17ebfb2","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":130,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"7831c30e-86af-4110-b671-027c83755eac","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":"3e02d92a-02dd-4681-adc5-4ff15468a173","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":"be450435-9e90-4a98-9e2e-ed201101a730","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":"061d9c30-db94-4650-b882-de7900a67e7f","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":"18f7eea5-924d-46f4-8f29-97a86921f300","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":"2f1842df-2f99-4d01-9701-676ed9f50bd7","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend par ticular","page_number":130,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"ffee27bd-d661-45cc-96f9-5b27800917a4","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":"79b92231-36ca-433c-86ad-f0ee680551ed","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":"3008112f-64d3-4a61-a5d8-9af429e0d015","block_type":"box","text":"BlackRock. As described fur ther 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":"45d698b1-ef12-46af-9281-2b2e4a4945ed","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":130,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"0d849b63-ce11-4076-b612-da94f5e67a6c","block_type":"box","text":"As par t of its securities lending program, BlackRock indemnifies the Funds and cer tain other clients and/or","page_number":130,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"d3ac6b52-5329-4715-b684-6651c2e2b1db","block_type":"box","text":"funds against a shor tfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":130,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"e2b4d6ee-b863-4c43-85b1-09c8cc6c925d","block_type":"box","text":"potential dollar exposure of collateral shor tfall resulting from a borrower default (“shor tfall risk”) in the securities","page_number":130,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"ec99eab4-8636-48ad-ba03-4bc64943483c","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":130,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"3f7d737e-3931-403d-b527-ac667a9750fa","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":130,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"81e62a3b-2245-4472-96ed-d87ef2dec629","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":"ea37a6c1-ce0b-471b-8181-26f4b365abe9","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":"4c1aa6c6-0592-4d57-bb49-ced1db0cc0b5","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":"e788f3a1-8358-493f-b6bd-3b86e034f839","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":"b2898d6b-ad57-428a-b2c6-6a8b41c56976","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending oppor tunities for cer tain loans (including by","page_number":130,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"66a4c6a0-defb-46cf-87b9-6b9b57ad9d19","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":"8c0018a7-8959-40e8-8beb-8ca0595b855e","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":"b33461a6-d27e-43a1-8734-fa64f6f4c225","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":"1bafc1b1-a1ac-406f-9977-b60fddd93841","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":"626a7c13-c18e-4999-99b5-2dd1658c58ca","block_type":"box","text":"eliminating the volume of lending oppor tunities for cer tain types of loans, loans in par ticular markets, loans of","page_number":130,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"a5dbb706-4a78-4f31-b7fa-2ed0612206af","block_type":"box","text":"par ticular securities or types of securities, or for loans overall. In addition, some borrowers may prefer cer tain","page_number":130,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"f83b1f5f-8c0a-421f-b638-1e1232c4e38f","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":"2491b33c-f78e-4abd-93ad-7e56220cface","block_type":"box","text":"regulation.","page_number":130,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"d8825180-0ed5-4ffe-a362-69d56837eb0f","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":"b0bf97bf-741b-4393-b405-d87065ca3605","block_type":"box","text":"order to allocate a loan to a por tfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":130,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"14c7dfdf-4ca2-4ab2-9d7c-6711a211f2fb","block_type":"box","text":"various program limits (","page_number":130,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"1122efd6-8e39-4c59-9642-ced48a1845e8","block_type":"box","text":"i.e.","page_number":130,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"d7239c95-16ba-4a0d-8981-16a36194382c","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":130,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"5e0d33cc-db71-482d-8052-8229ad97d1aa","block_type":"box","text":"hold the asset at the time a loan oppor tunity arrives; and (iii) the lending por tfolio must also have enough inventory,","page_number":130,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"9ae172a6-fc09-41be-9391-6e9b3ccf09a7","block_type":"box","text":"either on its own or when aggregated with other por tfolios into one single market delivery, to satisfy the loan request.","page_number":130,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"9319b0d3-8d30-41f5-9a86-7fe923885151","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":130,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"12c9da84-6213-4545-99d5-4377720d7e31","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":130,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"f111f825-63a7-45c5-a0c9-02d79222e2c2","block_type":"box","text":"Specifically, shor t and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":130,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"4c61bb25-1950-4358-8e0d-45a784320b74","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":"95326117-ef29-4fec-a74d-c78831eeb809","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":"d9220b42-8083-466e-a2b0-da635a22f870","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":"2cf37bee-7cfb-4e77-be7f-8e36df6ae717","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":130,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"48eed0ec-d18b-42f2-8901-33dfc13bb202","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":"70ec8d78-000d-449c-88c9-c2fc1522ca69","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":"334228b2-08d0-46f8-923f-26894d1fe2ef","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":"7db77c59-ab02-41cc-bb4e-d3f35eef3897","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":"f630c5f2-4dbf-454a-9a01-25a0b25a68d4","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":"4fcdafa3-381a-484d-8f9e-a5b0df449a06","block_type":"box","text":"II-92","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1d30ae2e-2348-4321-a945-aace8484e462","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":130,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"de4d6de0-3092-48ed-8113-99d3edae3bef","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under cer tain circumstances, the Funds will not be charged","page_number":131,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"ddf438f8-2add-4f41-961f-f334dbb84cfd","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":"aab1f0eb-7b01-4ecc-a5a2-1bc13fb63979","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":131,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"8051aeba-c2d4-44f1-a1e7-c4d9cd8e8789","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":"2d6c20b2-398e-45fa-8d4b-b249d9d88311","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":"75769e9a-b9b6-4b14-b67d-ad2e134b6492","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":"87d463dc-bbf8-4d39-aa85-7cf363f36ee4","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":"9affde28-8fdd-4f7e-b65c-7c5326e46f71","block_type":"box","text":"sub-adviser to cer tain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":131,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"e73eb9ec-600f-4a6c-beaf-c0acf37d154d","block_type":"box","text":"than through client commissions.","page_number":131,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"73c9b771-9920-42ce-b96a-3b4431ae09a2","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":"b9537676-24af-41d0-8ea6-e8edc917524e","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":"071d3fdf-1bb4-4def-957a-2d6f3b01d352","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":"23d378b2-44ee-458e-a644-60108d9b4487","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":"3c0297a2-67ac-4422-af6c-34c392b77679","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":131,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"63fa4dec-9bf2-44a3-9917-df8f7be75f88","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":"3320f8f0-c5b0-4305-a87d-b990ab9e9847","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":"d251dbfc-5a79-4539-8807-a2ebcb49157c","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":"49d24a8a-1804-4fe7-8a27-a74a8c307034","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":"d0b1596d-c43b-498a-b8b7-fe0c4b41780c","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":"5050cdbb-2e6b-4188-bbac-db4b58188f41","block_type":"box","text":"dispropor tionately 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":"32cd9e0b-23fa-434b-8543-60a3d0ae8268","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":"96a332eb-d72f-4e8d-b8bd-443bc3417bd0","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":"d12e1254-fb79-4d06-b929-295fd97d8be0","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":131,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"2a1471d2-1365-46d4-ac0a-77a241d1d2b3","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":"372d8438-ab41-418b-aa88-2ded2ce545c7","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":"57629807-0a60-4fe3-b0f7-35408db5be30","block_type":"box","text":"and services itself.","page_number":131,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"e26fc2ab-a75e-4030-98b0-864f6fc5ba83","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":"e85fc923-ad6b-4dbb-bcd9-d0a16fc0fd92","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":"ae61009a-f1bd-4a7f-a335-65724d9c7d2a","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":"83c391cd-6292-49ac-ba72-9a8fbd3cbe1a","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":"cc7f44d8-3e19-4ce0-b722-cece6911022c","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":"7678ee0d-dbc0-40ad-888a-0581f232e399","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a por tion of the commissions or","page_number":131,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"c85ff6cb-b83f-4f5b-acd9-76f4b3b14395","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":"9d873632-58d1-4504-b19b-c0f44dd203c4","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":"47fddeb5-1869-4d90-aa15-7f27811583eb","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":131,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"17fef051-850e-44fd-b0bc-5b7d2beba165","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":"47ea25f9-ad14-4046-98e7-0414a41df71e","block_type":"box","text":"securities transactions for cer tain 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":"36e859fa-e96f-4adb-858c-d818aa9c4933","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":"6c93f76f-ad67-4412-87a0-4412614d9f7e","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":"bbe99203-8ee6-4bc0-b60e-35ccc874feb4","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":"c51b0163-cb72-4adc-be3d-b872bad5c0e1","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":131,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"56a5758f-a686-4ed0-82f0-7c97328b1c8f","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":"de7ef768-c73e-4bb4-9a7d-01c8f6ae8e28","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":"40524733-4ac1-43c7-b946-a0b50e494125","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":"a4906b08-53f6-478c-ac88-ba3d70d325e6","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third par ty brokers select MEMX as the","page_number":131,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"96870647-d0e5-447f-b77b-91a257d089c4","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":131,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"e2fcbf87-2dbe-4e7e-aecb-efa66e67da84","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":"87a78360-bf02-4557-93d5-96863c65d007","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":"ced97611-0eeb-4857-ac16-ead413f67f7f","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless, notwithstanding","page_number":131,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"19707362-7e65-4537-acef-b5fee4dfc6ec","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":"e7e18cea-ed36-419e-b819-1a2e539ade40","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":"c3433cd8-dfe5-4f2c-bc29-d0e40b10096f","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":"b1c58200-a1b4-43b7-ac12-45a340191b8d","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":"1cbbba62-46ad-4054-9fea-2ec44335c383","block_type":"box","text":"II-93","page_number":131,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ada9810f-79c2-4e55-a4f7-a93b11ca289c","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":131,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fe9071ab-be55-4bb1-bffb-2c44ad894eba","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":"3502d63d-45f6-407d-9bfc-d5e4e6b8d4ef","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":"f22cf63b-0976-4dfa-bd69-60d17872c7c3","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":"6a7ea3e1-2d32-4323-a309-4231eee62136","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":"1a3b0c3b-c2d4-4563-bda5-6c5ac9a140ea","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":"1d459c8f-80bf-4a3e-a565-79fe2acd3e25","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":"a2d0710b-d6ef-4b78-9177-d5fc1da5ea73","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":132,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"a731e789-f233-4563-88a8-5edb50e54f2f","block_type":"box","text":"consider the effect of redemptions on a Fund and other shareholders in deciding whether to redeem its shares but is","page_number":132,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"d55f61e7-a6ec-41f4-ae79-7fc93a491943","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":132,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"2be482b2-e73f-4e42-a946-cca87ba3ffa7","block_type":"box","text":"It is possible that a Fund may invest in securities of, or engage in transactions with, companies in which","page_number":132,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"4cb3aab7-8064-4d70-bcd5-abb6405fdde6","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. A Fund may also invest in issuances (such as","page_number":132,"box":{"x":70,"y":203,"width":838,"height":12}},{"id":"29d117e5-13ea-4021-bfdc-c4a1023df28a","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":132,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"1bafa084-b5c7-4853-90fa-2aa78bb2fc38","block_type":"box","text":"relating to the proceeds from the sale of such issuances. In making investment decisions for a Fund, BlackRock is","page_number":132,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"a5a9a693-aec4-418b-ac00-3ef073423ce7","block_type":"box","text":"not permitted to obtain or use material non-public information acquired by any unit of BlackRock, in the course of","page_number":132,"box":{"x":69,"y":249,"width":806,"height":11}},{"id":"cb6d7db5-e9e4-4b18-938a-9100a4070136","block_type":"box","text":"these activities. In addition, from time to time, the activities of BlackRock may limit a Fund’s flexibility in purchases","page_number":132,"box":{"x":68,"y":264,"width":822,"height":11}},{"id":"a7649bcc-ca6d-4bc1-975c-8324b20a22bc","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":132,"box":{"x":69,"y":279,"width":766,"height":11}},{"id":"ffe060ad-2641-4228-a9dd-c2dc4d7cc6f3","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":132,"box":{"x":70,"y":294,"width":533,"height":9}},{"id":"deb63144-80b1-4d04-be66-d0cecf716917","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":132,"box":{"x":102,"y":317,"width":789,"height":11}},{"id":"f3102078-58c7-4deb-a2e0-7c7373858020","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":132,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"4877d66d-1c6d-457b-9fe6-d9ec867e063f","block_type":"box","text":"sales of the Funds or other products may be greater than remuneration and profitability relating to services to and","page_number":132,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"939550d5-d26e-46cd-a631-636d02c7ddaf","block_type":"box","text":"sales of cer tain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":132,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"846adc03-ac09-4fed-ae2b-29775ed26c0a","block_type":"box","text":"directly or indirectly receive a por tion of the fees and commissions charged to the Funds or their shareholders.","page_number":132,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"3322e761-09e1-4385-a47a-a9639c12dc35","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":"da6d95b7-64d1-4707-8c44-e2800328d6d3","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":132,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"90837859-807f-49fe-9df6-2ed4a73e17c3","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":132,"box":{"x":69,"y":423,"width":801,"height":11}},{"id":"b789ac4f-8a06-470b-b865-a7ef8c8d0b61","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":132,"box":{"x":70,"y":438,"width":711,"height":11}},{"id":"b9f04b95-5c6e-44c0-b86a-123b5d1321d6","block_type":"box","text":"BlackRock may provide valuation assistance to cer tain clients with respect to cer tain securities or other","page_number":132,"box":{"x":102,"y":461,"width":741,"height":11}},{"id":"2528d96c-bd23-44ad-8ce9-bb8d060d8982","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":132,"box":{"x":70,"y":475,"width":823,"height":12}},{"id":"ddf5ba91-038c-4c67-ac94-497425b58ce0","block_type":"box","text":"the same securities or investments assigned by a Fund’s pricing vendors, especially if such valuations are based on","page_number":132,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"e5ec9e11-6069-4bab-a621-b4d050fcfc3f","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":132,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"940291dc-e891-41f6-8d6f-1bc107c694ac","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":132,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"20b193a3-2652-41c0-a6d5-ec22056fd167","block_type":"box","text":"may be instances where the Fund’s pricing vendors or fund accountants assign a different valuation to a security or","page_number":132,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"2be2883c-7069-46f7-89b2-dda96f3cee68","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":132,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"52662b7c-5fea-4f6a-982c-e3de83f1421d","block_type":"box","text":"As disclosed in more detail in “Pricing of Shares—Determination of Net Asset Value” in this SAI, when market","page_number":132,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"7d392fb5-5390-4e41-8317-3cc86fd91f09","block_type":"box","text":"quotations are not readily available or are believed by BlackRock to be unreliable, a Fund’s investments are valued at","page_number":132,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"d39453ec-62f3-4bb6-a8d7-4d3da1bf4a46","block_type":"box","text":"fair value by BlackRock. BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":132,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"234b00a8-f085-4410-ac58-12f7ccddefb2","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":"6efd53f9-1419-4d99-91c7-8049edc67ffc","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":"06785064-45dd-4b70-ac92-711703502858","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":"6ba4edf5-3d95-476f-ae96-9797c705315a","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":"03dde490-061f-426a-9768-bed25f1ca8c5","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":"3391a7d6-664f-40c4-895c-ae3ef893b304","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. While fair value determinations","page_number":132,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"a942c863-8fff-452b-89f6-8220818a64f7","block_type":"box","text":"will be based upon all available factors that BlackRock deems relevant at the time of the determination, and may be","page_number":132,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"8625d8d3-f962-4e55-8101-918ef7ca95ec","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third par ty valuation models, fair value","page_number":132,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"1eb2cbed-bc05-4970-8485-370b5bc8df21","block_type":"box","text":"represents only a good faith approximation of the value of an asset or liability. The fair value of one or more assets or","page_number":132,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"adc16ff4-b4b0-4d30-8001-0315665fe48d","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":"708cff95-2e4a-4dd8-8ee1-7c470865d2f1","block_type":"box","text":"period in which the par ticular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":132,"box":{"x":70,"y":770,"width":779,"height":12}},{"id":"e17f936b-a1ea-4559-b54e-a3955f94d2ed","block_type":"box","text":"redemption of its shares at NAV, at a time when a holding or holdings are valued by the 2a-5 Committee at fair value,","page_number":132,"box":{"x":69,"y":785,"width":834,"height":12}},{"id":"a0705d5b-0870-4ff2-95e7-3c5c80cff3e6","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":132,"box":{"x":69,"y":801,"width":788,"height":11}},{"id":"a6957c0d-170e-4bec-9d5c-ebd64975f896","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":132,"box":{"x":69,"y":816,"width":765,"height":11}},{"id":"54c1d43c-5fde-47e8-91f8-712fe1081d88","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its shor t term cash investments in","page_number":132,"box":{"x":101,"y":838,"width":784,"height":11}},{"id":"bf4ab34f-5dfb-447f-88d1-c3ccd2561879","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. 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As a result of","page_number":133,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"decf0aeb-8fde-4df0-a93b-237c84cf2007","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":"78d7ef3a-8f04-4ea0-8c1f-3a3294609654","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":"29f99da6-5c34-42e1-b536-f04f66eb682f","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":"c84691c6-eda6-4ddd-923c-042f8b7cf682","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":"c6b04cc3-b5ba-4d35-81f3-cbf43e32a288","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":"94d80e74-ca32-4e9e-bb71-c543b6171490","block_type":"box","text":"possession of information regarding the Fund’s por tfolio transactions. Each Code of Ethics is also available on the","page_number":133,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"b46aeaf2-62de-408e-b05e-592005898d2f","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":"939da185-f5d1-4e77-ad5d-53021bec42ea","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":"58ea80c7-530b-4571-af0b-26a26ddadb3d","block_type":"box","text":"BlackRock will not purchase securities or other proper ty from, or sell securities or other proper ty to, a Fund,","page_number":133,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"5992a85a-635d-418e-9ac6-581291e286c6","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":"30e633f3-e246-40f8-8f53-fa95a8cded59","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":"747c829e-79ed-47f3-9b47-0bfbaaf37f22","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":"e9821530-0af4-4f78-8972-46c923ddc249","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":"32d9e5fb-23e5-4e5a-aa62-1e33b675fc28","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":"c53864a6-b543-404d-9cc8-5fcac9026681","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":"698476ee-fa36-4bf9-bbef-4ee084eb340d","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":"4c37d118-a7da-4adb-9ace-5f8c9ac5d8db","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":"aef2fc9e-6a86-4248-94f0-513f964c1e54","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":"fcc932b4-2940-4982-9cec-fea9d35dc894","block_type":"box","text":"initiate or recommend cer tain types of transactions, or may otherwise restrict or limit its advice regarding cer tain","page_number":133,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"1a506997-e111-48a8-8279-0338c82eb6c5","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":133,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"3ec22747-e2c0-4de2-ac9c-34653e05ef7b","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":"75ce500f-c3e1-4e43-a835-ed5e731aa3d4","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":"ecd3b579-e3bb-46c6-9dd1-fd79cfe4a1be","block_type":"box","text":"of that company on behalf of a Fund, par ticularly where such services result in BlackRock obtaining material non","page_number":133,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"3c499cce-6e14-49a8-aef8-30d557100bc8","block_type":"box","text":"public information about the company (","page_number":133,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"9cabac31-ff4b-4a9e-a5b8-3abb085c8a00","block_type":"box","text":"e.g.","page_number":133,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"1f21bb3d-d5ac-4bee-8198-8218388cc4f7","block_type":"box","text":", in connection with par ticipation in a creditors’ committee). Moreover,","page_number":133,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"d0be74a1-0ea3-4de3-8303-3fb080d5c73b","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":"921f2c7e-fb51-40f8-a9ac-282f47f74c36","block_type":"box","text":"BlackRock from effecting cer tain por tfolio transactions or taking other actions in respect of an investment on behalf","page_number":133,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"3364109c-1830-4e89-8ec9-6297d6fcff0c","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":"846360b7-01e3-4f60-809a-ae33250dcb8c","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":"7afedcc5-139f-4833-bd0f-02bbdae1ebca","block_type":"box","text":"securities of which the Funds wish to purchase or sell. 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Cer tain","page_number":133,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"52f42956-f464-4d2c-bb25-8201ec04e1c5","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":"e7e96ca7-7ca1-4cce-bb0a-e1a166cf67d4","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Cer tain por tfolio management teams within BlackRock may","page_number":133,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"c61dd267-0623-4e5a-814c-0c24904a99a1","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":"4ff56795-8761-47c9-8a73-7d7588b6a2a7","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ por tfolio management teams. The","page_number":133,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"a19a6aac-550b-4148-8ae4-c6e1acba6430","block_type":"box","text":"various por tfolio management teams may not share information with each other, including as a result of cer tain","page_number":133,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"31342d75-1f53-49b1-8d31-58f36a79c19d","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":"36a718e1-73ac-4d5b-889e-ed1bd44509a4","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":133,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"50db4580-fd37-4858-894c-5f18b2f561e6","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":"fb679065-d919-4fb4-a27e-d0ce5da164e3","block_type":"box","text":"por tfolios and voting proxies with respect to cer tain index equity por tfolios versus those responsible for managing","page_number":133,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"a6426253-40e6-4452-896b-bb9c24766438","block_type":"box","text":"por tfolios and voting proxies with respect to all other por tfolios. As a result of information barriers, cer tain units of","page_number":133,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"f96e4c55-2901-49d4-86bf-ad9cf33a704c","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":133,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"3001a824-8ae6-4daf-a568-44a8fe09037a","block_type":"box","text":"senior personnel, in other units of BlackRock, and generally will not manage the Funds with the benefit of information","page_number":133,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"b9850006-add7-418c-b904-32ec26b150d6","block_type":"box","text":"possessed by such other units. 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":"4361e8ad-64ca-46a1-911d-6c0758fe9221","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":133,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"a849306f-ccb2-4d37-ab2d-949d44a64b15","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":133,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"212a1783-3e93-4e87-aa4f-2ec3b6413670","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":"998e4044-2cb2-416d-8980-a1891b8a2284","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":"d932dc82-d0f7-4b55-aee7-c4b2b7dcc935","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":"a500cc8c-5e72-4d10-adf2-9ea5a4d4f7cb","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":"310ef67d-a6b6-4db8-8e9b-9a0713e697b3","block_type":"box","text":"II-95","page_number":133,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"334446ee-2acb-4896-81b9-630ebd3fc261","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":133,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1426c302-71ff-4132-9f2e-f3b01d03e3b4","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":"ff750a3a-92df-4f94-8ac9-ca16f7608452","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":"5f1c0a45-9b2d-4d08-baba-6b09bbbf1e53","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadver tent crossings of the barriers,","page_number":134,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"d134c4d2-9ae8-4071-b22f-ddd606772d6d","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":"df9866c5-702d-4736-a873-704952fabf41","block_type":"box","text":"a barrier.","page_number":134,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"72f010c0-ff6a-4bbc-a564-60d857a0bf50","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":134,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"aeb551cf-d9fb-43dc-97f4-34a11efc8f87","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":134,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"0a2081db-3024-4435-b142-9429f5b240f9","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":"c5241e22-8057-49c4-81a3-8dde8e01e398","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":"504eb55a-5ee2-4d57-81f7-0adafd12ecde","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":"0538c869-e8d0-4405-b85f-6a04928f7fdf","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":134,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"973d8743-2bcc-4eda-aa12-5466aa05fd60","block_type":"box","text":"that operate in cer tain industries (","page_number":134,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"7cf2684a-b058-4ae0-a4a9-d57203031c3b","block_type":"box","text":"e.g.","page_number":134,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"09ea8aa7-8296-4c39-94a6-0dcdf58b6129","block_type":"box","text":", banking, insurance, and utilities) or in cer tain emerging or international","page_number":134,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"c3dd75de-3ed0-43f9-80e4-99177aeebef8","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":"60e0837c-83d6-4a12-a32a-473236beb463","block_type":"box","text":"e.g.","page_number":134,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"b8ef348b-67b8-46e5-a677-888d9a71b15e","block_type":"box","text":", with mechanisms such as poison pills","page_number":134,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"77d3b873-bc0e-47f9-abbd-95eb00281579","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in cer tain futures and derivatives, there may be","page_number":134,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"ded20f0a-ed38-4786-ad96-6fdae599a6f5","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":"738926af-c5bd-4e07-a58d-c0876113ba77","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":"b41ed487-2754-4026-b558-1fa8dc12ef89","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":"3c890285-38f0-427b-8b62-5d430cc178d8","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":134,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"1caf0ee5-cf69-4b63-8bc2-47f0933a2546","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":134,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"db8e85a4-f36f-4509-af69-21f25837a802","block_type":"box","text":"seek to make indirect investments (","page_number":134,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"d2157105-bf10-4b24-826b-3037f25f7865","block_type":"box","text":"e.g.","page_number":134,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"dc78e5fa-0285-4aed-92ce-8abc5057db20","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":134,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"be764055-f6cb-4b11-9df6-a8a6a2e77265","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":"38677195-6cbc-4f7d-9ee6-2bd4b3e6a4ad","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":"482004b9-34c4-4c13-8c6d-7a6c6065b37f","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":"8c202582-5a68-4bf8-a244-d1cfac69c110","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":"20971da6-b555-4009-b464-090d535ae600","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":134,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"5201c6fa-d8b9-4c38-9e0c-689fcfccca39","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":"32bcc903-7d62-4782-9b81-0614eb2f61fd","block_type":"box","text":"If cer tain 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":"a26e5880-2583-4909-a71b-fccc4611a4c9","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":"5540dcbf-730a-4f1c-9d6a-14f465e60f06","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":134,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"b47a4de2-06fe-463f-af49-33a937498d12","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":"e260e8c2-83ff-46b6-bcb9-58c0575adc36","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":"569578bc-3579-4a92-bdf2-19f7eaa4010c","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":"0ed04889-c724-4f6d-aa14-58f875e85e03","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":"2b6291c0-377e-45f0-836b-490c818328ec","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":"f6beeaea-a4ca-4e38-b33b-9c4a0a7cb807","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":"9c25c0e8-226b-4a6c-ad23-0f98d42e057f","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":"09570edf-78dd-4a21-9d68-4b50ecae6016","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":"2d525959-5789-4b0e-912b-b05eea3676ca","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":"e58ff6e7-2443-42ac-a28f-4e9cea4ce1f9","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":"7c7fdb6a-90cf-4d31-8291-7c30d34b772b","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":134,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"d3057811-ccda-464e-b2ad-e8078bb8145b","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":"d6cc724d-dd54-4f1f-b85d-4e9f13995b26","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":"1143cd1c-730b-450e-b658-5f4f138a8f00","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":"40055670-e003-48f6-a631-48137e145a19","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":"7e7b618e-e56b-4b3e-b6b6-9a2bfa072816","block_type":"box","text":"from taking cer tain 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":"190c12b3-03cf-4f3d-bf7c-49149af1533a","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":"6e0f66ac-550c-418b-b4d9-759fa9ae6f93","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":"7e00a372-f779-4c08-b0e4-b6d5120d9cca","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":134,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"cfd98544-73df-4af7-b3a4-5d2ed5336636","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":134,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"ab70b302-05d2-433a-9690-1bd642d86dfe","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":"2f0e7250-850c-4103-b865-854cf5db79ce","block_type":"box","text":"cer tain 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":"a7956750-4275-44a2-9538-22e938444987","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":"f6549b39-7cbc-42c5-8c2a-448769cf6103","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":"24611ae2-96bc-4a17-b7aa-d083ab8e644a","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":"db0ea985-3bcc-401e-b91f-cd9590e4e008","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":"52828135-9bea-496d-b686-acb02f5d1ffe","block_type":"box","text":"actions. In these cases, the investments will be sold in a manner that BlackRock deems fair and equitable over time.","page_number":134,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"43e5531b-53f0-41f9-bcb7-9cb185024054","block_type":"box","text":"II-96","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d0856e42-12f1-4bc0-89b6-1b2854faa467","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":134,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"28b9b079-cbaf-4271-bbaf-fd608cc486fb","block_type":"box","text":"Ownership limitations are highly complex. 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":"da80a3b1-4a53-4d50-bfec-9b806c21e007","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadver tently breach a limit or violate the corporate or","page_number":135,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"7e2d46e2-8c12-46c5-a751-5b50e345557b","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":"501f3926-66cf-417b-a95d-c6157d380ced","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":135,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"a6999ffa-739c-451b-b5ec-079aaae79123","block_type":"box","text":"regulatory authorities, and such repor ts may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":135,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"40a8aabd-8937-42a7-8cc0-488d2255d62f","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":"7b7fdd7d-d182-47a7-b849-a3ec772f682c","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":135,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"394ec365-64a6-44cf-b163-9a0532f648ce","block_type":"box","text":"license and use such indices as par t of their investment strategy. Index based funds that seek to track the","page_number":135,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"0fa02da7-9aa7-438b-938d-f0b5afdc4fea","block_type":"box","text":"per formance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":135,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"c27aabfc-5db6-4aa0-ae25-eb2993575896","block_type":"box","text":"providers, including BlackRock (to the extent permitted by applicable law), may be paid licensing fees for use of their","page_number":135,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"b265ef28-e797-4004-a74d-f980d897dee4","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":135,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"abb8fa51-1393-43e5-8bd0-fd5be0e23adb","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third par ty index. BlackRock may","page_number":135,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"2044b8a1-331b-4a59-b102-ab8ca15a9029","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":135,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"7d444ee4-c41b-41df-8a1c-ccfa5bc2dbef","block_type":"box","text":"indices. BlackRock is not obligated to license its indices to a Fund and the Funds are under no obligation to use","page_number":135,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"e43fe57d-0e69-4b3d-8f87-4d175f30ede3","block_type":"box","text":"BlackRock indices. Any Fund that enters into a license for a BlackRock index cannot be assured that the terms of any","page_number":135,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"aa581966-aaf7-464a-8e02-d4c8502a05eb","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":"a8aadf0d-c80d-448e-9b7d-140566aad34c","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (","page_number":135,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"65a61ccf-5583-4b3f-b630-276a910347c6","block_type":"box","text":"e.g.","page_number":135,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"3e70f7d2-e8ac-447e-8392-c159f676c169","block_type":"box","text":", custodians,","page_number":135,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"7558aec6-de46-4631-8434-ce49d1d4f910","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":"80b93960-7314-4289-886f-fbc5a8679352","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":"faa21732-b8db-40a3-8acb-9c5fb47868f8","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":"f41ac681-7121-48bf-b1b0-10dc253bd8ed","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":"1d7709e1-d952-45a7-ac74-04979d5ad824","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":"fdd26e4e-5a26-4833-8f5c-335876c2b65a","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in par t, to BlackRock, which could result","page_number":135,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"f8c56595-abfe-4508-aa60-8150dae2a319","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":"a5238444-3522-4e67-b029-00662a5476fb","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-par ty service providers to a Fund, or the","page_number":135,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"95479e80-b1fe-4c3c-9922-fc5eb95f3176","block_type":"box","text":"selection of such providers, par ticularly 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":"9bf52c5a-e11e-494c-bd91-7e868229fb4f","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":"4880ff0c-80f8-4b5d-9a37-23a85c8d7472","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":"c70c0628-958a-4e21-8dc3-b6d29ce013d0","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":"f7b0ca5d-4546-4b91-8acb-828bd08af6fd","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":"153d3f6e-1ef1-4260-9be3-c80e11656018","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":"ab8ce8e4-f045-4c29-a2c4-e790afdbe79c","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":135,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"afabf362-cd0f-40fa-8a64-df943ea3a473","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":"bd62d5d5-a296-4a5f-84f8-e53daa872f88","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":"1137b4f2-c88c-4f6d-a799-dc6592e96767","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":"2a49daef-9790-4204-b34d-9125d4627101","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":"8b571f49-c84e-4fe7-9722-e38bcef227e6","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":"b0850a09-fb80-4869-b5d4-a27559a89939","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":"14ddfb63-88d7-4904-b0e3-547e9fdf8256","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":"dc7ca6f1-145f-4d53-98e9-91b49a439296","block_type":"box","text":"provider.","page_number":135,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"826b515c-e386-4fd9-8902-35ba33cad573","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":"210628ad-bee0-4d5a-881c-2421de734798","block_type":"box","text":"arrangements for cer tain 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":"9999936e-02b6-49c0-9bf0-157b1164f5e3","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":"77fceac5-7a90-4845-91df-07660e0634ec","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":"11a91d33-7a20-4f35-b0db-4b066111b158","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":"d63c7dc4-46ba-4621-95d4-bb4c53ad6da9","block_type":"box","text":"PURCHASE OF SHARES","page_number":135,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"5d3dd278-da6e-4c1e-9382-5f7b11954a59","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":"7a83fe3f-9d78-4555-a35e-b2c0c215733d","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":"08339728-e01d-4f8b-aabd-8c8e9c68d0ed","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":135,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"053fcfd0-21dc-4938-a315-4c3ee62c8302","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":"028fdab2-d635-458a-ab9f-d6f4806c9f62","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":135,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"1744de7f-d562-41c0-b15d-44799d482e59","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":"f19d8b97-0655-478e-a34e-8fda57eeaa09","block_type":"box","text":"II-97","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"088a75fc-7c12-4c58-8434-630984533614","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6304ae66-e50b-4772-8ad8-08777915a793","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to cer tain eligible investors without a sales charge.","page_number":136,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"c7e759d7-d844-428c-847d-55c0e121e75e","block_type":"box","text":"Cer tain Funds offer Class R Shares, which are available only to cer tain employer-sponsored retirement plans and are","page_number":136,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"e06cd397-134c-440f-a409-6d63d8c0a36b","block_type":"box","text":"sold without a sales charge. Cer tain Funds offer Class G Shares, which are available only to investors on eligible","page_number":136,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"c107c615-9555-4c81-a48b-d8a18e3a5aad","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":"951bd999-b5a8-444d-92a7-2f9d8c5b9232","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":136,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"302a4aa0-ab81-4ae4-b3e6-80e626e53570","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to cer tain eligible investors. Please see the","page_number":136,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"6bb9f3cc-44f7-4b2e-8395-4688f8947bfb","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":"8d12ce75-f12e-439c-8dbf-e73f56ac11a2","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":"a3db44c0-07f7-4f46-997c-c5b2afe8df05","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":"f96edf64-144c-4843-a483-30df4ecb287d","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":"4009f07f-d75e-4004-80c7-96ee97925d45","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":"5064affc-72ac-4e48-862a-2461836c73c6","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":"67882392-60d6-4d0e-aa66-8de37de4e26c","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":"dbdc03a7-f738-4ab2-9118-b1a4dbf1389e","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":"3b36aeeb-5c6e-4770-9657-d915df1a254a","block_type":"box","text":"Target Date Funds that allocate a por tion of such purchase order to such affiliated underlying fund. As to purchase","page_number":136,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"fd26d18d-4eff-47ad-9808-7ba51697cad0","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":"753a2ac5-4fee-4eec-9f4a-88a334d98939","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":"2eff7de8-55c8-424b-8337-097245a6ff2b","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":"b659203e-7540-4358-9a6e-c2c9ae886cb5","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":"7ac1f80f-a873-4929-888c-36913f49650c","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":"f66fc297-af61-4d97-9982-12fe0dce184e","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":"ffbe35a6-3a9f-4947-90d1-d8ef72617567","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":"240a386b-02b7-4968-8486-363760d6168e","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":"76f590bb-a045-407a-93d8-aef6aa91d18c","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":"cb07ab2e-c86c-416b-977a-2567c34cab89","block_type":"box","text":"The minimum investment for the initial purchase of shares is set for th in the Prospectus for each Fund. The","page_number":136,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"512052b0-c515-4dcb-9262-942e3feb0010","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":"88b14498-a558-45ae-ab76-5004f63a40f9","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":"a5175240-5ed0-486f-ac1d-6915133c20aa","block_type":"box","text":"investment is $25.","page_number":136,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"2d83dc3b-70c2-4d74-a178-0bcda97078cd","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":"96da15f4-8406-4a14-bc12-c94170c93782","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":136,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"81b16dac-a1f1-4604-bd05-e1ba682520bb","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":"1df021eb-6f1c-43f1-8fe0-07d6a21116fe","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":"b235d45d-f2dd-419b-9df0-350a5af1cf9a","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":"4e7c1785-d9f2-4a1f-bc6f-87fd1cfbbaa3","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":"488a36d5-8f62-44d8-b3d3-3ed37fa0c1b2","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":"fc4a40ca-05ea-4f8e-8258-4aba53842945","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":"16bf1f3f-28f8-4eb0-935f-9c6dd997e5ef","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":"d240b879-db39-41bc-9f78-5d23d4f37152","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":"faee81d5-2baf-4338-aa42-7a577e3c9e29","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":"9f7a38b5-01a8-4e37-840a-2e698d45027d","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":"32114a7c-76f5-47b5-8f76-5b394ec87682","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":"cf120ce4-062f-4628-ad55-1dc30771f003","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":"65ca1fbc-3557-4aef-9173-24078b653b9d","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":"1f226e90-5746-4f8a-900e-5c1d7de16f2c","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":"94ba7aab-6029-49ab-9c04-9405c0e35c5e","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":"c8efd61b-7855-4878-b382-f000346db650","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":"208d77d9-a0f1-43ee-8c61-24794dcd65e5","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":"96be8fe3-2d35-431e-8ddf-497d611f89b7","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":"c76de201-cb1e-4844-af8e-2d56d9ec8bff","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":"250a3ee1-ff15-45f6-825d-3635a2b5f55f","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":136,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"6252e75c-6aa7-4aaf-a91f-da6e755eeedc","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":"48e11313-2297-4347-a0e8-81ad18299181","block_type":"box","text":"adviser.","page_number":136,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"4af66f82-bf05-4238-a5e3-4cd4b08dba59","block_type":"box","text":"With cer tain 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":"78c5749c-6d4d-4200-bf36-3660b87f227a","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":"9285ebe2-2962-4a1c-ad44-bfbae0dc870c","block_type":"box","text":"II-98","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c812f5c9-74fe-4396-af1f-7f354be711ee","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2c34f641-b22b-495a-bc84-346dde75b47c","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":"47488b6f-a138-46ad-941f-44ef60685c3e","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":"db7ee7fa-4f21-4d8d-810b-59a4cd31c80b","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":"e44d7f69-7c5c-415f-8ef7-ad86fc8dbe28","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":"027b5479-ce10-4bc4-814d-1d0121da5956","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":"14c9a0b6-5b29-45a1-b5d4-f9a5916ccd76","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":"4c0001ed-763d-4b8b-806d-52581906bd98","block_type":"box","text":"also be restricted from making additional investments.","page_number":137,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"b4bd142f-07ac-4144-b05c-7026ef7fb57c","block_type":"box","text":"In-Kind Purchases","page_number":137,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"a7bc8425-28b6-4af0-84bd-d5b6cbc576d2","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":"f90a0f5e-ba7e-46aa-93cb-9e33290d09c0","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":"807093ce-ae39-4460-858e-ca359f423bbb","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":"120856ec-09e8-4103-99ed-4c240a1c948f","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":"f9e3695c-d80e-42b0-85d8-010277997ac7","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":"763cee22-d2f2-4e50-a11b-efb11cbd3f0b","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":"897037e0-f5c1-4581-89a3-5216ef242d65","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":"d67a3be9-54d8-491a-a3c6-97fcd2f03cd0","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":137,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"34895136-05a0-4213-80c6-7619b27f69d1","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":"11d1d703-1250-4473-8b9b-77900bb121db","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":"adf98f21-44a1-4af9-9faf-5ee53411df87","block_type":"box","text":"has settled.","page_number":137,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"d4ca98dc-3899-42a0-9cf3-e242c90360ac","block_type":"box","text":"Institutional Shares","page_number":137,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"48132421-465d-44b3-9628-bc11b7b559ce","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":137,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"bc183897-877e-4584-a1e2-3366fd2f0478","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":"5d8e3ce0-848c-40c9-87d3-8ead0f47fc22","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":"473517c8-e023-43d5-bfc2-b58285028efa","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":"e2f11ec0-473c-467c-bd9b-346b65912c32","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":"6924b895-a962-4ee4-ba4f-bedce0c295fa","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":"df164aca-2f47-4f41-86cc-692e5ceb21fc","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":137,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"7c538fc7-4355-4d3b-9dd3-52fb8253cb40","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":"faf43872-2388-4260-9323-f9da449f4576","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":"6ab18c5e-7697-40a6-a1ea-353b5e5bbd78","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":"3373104a-8883-4a1d-b9d2-3f010d374685","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":"0ba2a9e6-a44d-4448-984e-a75932db15d6","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":"427c2f3b-1367-4c23-8b26-739f2e99503e","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":"0efbebd4-862a-4c16-b419-570284de0e15","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":"29883c9a-e090-48e8-a3e6-a9aa0adfba98","block_type":"box","text":"these fees and conditions.","page_number":137,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"c7777c55-d93f-4fcd-8fe0-e2e2bca3797b","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":"0987940e-f568-4533-af0e-ee9d271058ff","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":"76bf5a87-55d3-4763-9a5d-17158f257072","block_type":"box","text":"cer tain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":137,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"2f2c744a-523b-491c-9560-c0804e5caba2","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":"db1b46f6-c923-4c3f-a208-d5eb66870cc8","block_type":"box","text":"incurred by the Fund.","page_number":137,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"c13dfd4e-e9ec-4049-ac8f-21bcc207d0f6","block_type":"box","text":"Cer tain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":137,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"4b0683b6-c2c1-413f-9e32-c0817c09f42b","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":"828c5092-30b2-4bf9-8df1-364ff16add40","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":"a4e9c8fc-f311-4e57-a594-b387f46f58d6","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":"b7a6e0d3-2c45-464e-8dba-da45b276adc0","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":"a11c9d09-4d76-4ed8-ac32-42e145cb7e75","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":"d22adea1-10de-46e3-9465-1eb5b702a329","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":"26f08827-05e5-44c9-931a-87a59ec7c3ce","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":"a6e2cf08-a750-4716-a281-233f9faad2fd","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":"aaaf79d1-ed27-454d-85dc-50acab51035a","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":"102e38c4-3394-43e2-a5ad-92ab81bcbdd3","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":"36995403-7753-4d8a-982e-083668df967d","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":"21e093eb-52f2-4246-81ff-be7e586082b4","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":"a8c3f286-35c5-452e-b9be-c94e9de59ea5","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":"78c16f5f-46cf-4cff-8c00-c72225b7c2b3","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":"314dfadb-1cdc-4cee-b0fe-7ef56c61aef7","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":"d697603a-ec2d-4e42-affb-a7bbac3a569e","block_type":"box","text":"II-99","page_number":137,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"64b8ad16-8443-46eb-961f-dfefcbcac5b6","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d170f82a-51f4-4808-9810-9105109690cf","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":"41ee4553-142a-47cc-8479-da51a0448401","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":"3cfb1822-b74c-44fb-92b6-53dc9ce9f135","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":"72fb86a3-ee0f-453a-8202-5f5839aac9be","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":"33367a2a-2d5e-4332-b75b-31b0c4e9f859","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":"99394ca4-be26-4d89-8a27-695d82b763fd","block_type":"box","text":"minimum initial investment of $1,000; trust depar tment clients of Bank of America, N.A. and its affiliates for whom","page_number":138,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"c79d7431-9c3f-42c2-8df3-6e750c13f5b3","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":138,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"b152f1a6-541f-4bbc-8ada-ca7f9709627a","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of cer tain BofA Corp.","page_number":138,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"a7d2f265-6fb2-49d7-928c-344d84ab63f5","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":"9e738496-05ec-44cd-8664-9194d86f62e3","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":138,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"9096ebdd-ce0b-4291-82e7-d0458b73c0e3","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":"19b77099-1e0a-4c0b-80c0-16e90ca01a7d","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":"50d12961-41a5-4b4f-bb0b-622fa39050a9","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":"56bd8dd9-f479-4c80-bc42-19a5e84b6150","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by vir tue of the familiarity of these persons","page_number":138,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"810561d2-d3d7-4834-a5a2-22d7fc8e02e9","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":"3c1e3782-fe99-49d5-880c-9477713afa74","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":138,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"e695203c-49f5-4088-9227-98a33ea50d26","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":138,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"7cc9e58e-12a1-4b36-8864-741c195741d9","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":"04ce5a33-5abb-4cfd-8df9-9f9e743adc58","block_type":"box","text":"Shares are offered only (i) for purchase by cer tain employer-sponsored retirement plans and fee-based programs that","page_number":138,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"629395ff-fb62-488c-998c-80eaee50c880","block_type":"box","text":"have been previously approved by cer tain Funds, and (ii) to cer tain investors who currently hold Investor A1 Shares","page_number":138,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"02ead911-7a74-43ec-99d2-5ba78423d0ea","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":"ef191d4f-aad6-4194-872b-7e49ede938bc","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":"006259f4-b57a-44cd-8ec8-646d9f57ff75","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":"c18d559f-e0ec-4fcb-bec2-ad1f95335d8d","block_type":"box","text":"BlackRock Shor t 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":"be746459-eb08-4711-b4d2-6160d2bfe347","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":"d183ca68-191a-4e2f-a0dc-f9ebfb0fffe1","block_type":"box","text":"par ticularly 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":"37fb2293-fe93-4157-958a-3a9bcfd97c6d","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":"8d00c0bd-178f-4de4-8522-e8520c8b6598","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":"2f86d98a-d5f0-491c-8a47-7d27791fcb59","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":"dc649a18-4904-4436-b44d-6068b95ef11a","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":"c26bd50f-0420-410c-9934-b0f0c3ca4b10","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":"489373cb-5c89-457d-a24d-031eaed10f91","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":"b3ec6676-4f89-4c86-8cd3-0a5c02f51ad2","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":"3fd0b164-91b3-40e9-b3e8-78df2330b670","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":"fd042f1a-d87a-4fcb-b526-8d8520455273","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":"1ae0c480-66c5-433a-b785-66424fbe9cc6","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":"e59a94de-47df-4d1e-84b6-67bd83ad121d","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":"a55d0a41-65da-4770-b7ba-49f57c5e928f","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":"cd03a2af-3b9d-4772-8a37-ed4f98a36868","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":138,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"1fb2a8f1-2380-42eb-a7f9-4ed9b470a408","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":"ed862653-9ba6-4e21-a227-72f9955f2e59","block_type":"box","text":"periods indicated.","page_number":138,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"1ce69fe3-f122-42b5-8939-6992f79aef18","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":"4bde1957-eb88-47a9-90b7-bbba8956a654","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":"84c6f895-da0f-40e6-b62b-9df18a50d1c0","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":"3f334da5-48ec-48de-83d1-1da2d6d5cfe0","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":"8e7bbd80-3fa8-441f-b63e-b71ef0a495e2","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":138,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"86746dc1-bdee-42d7-9a68-1ff525e08f27","block_type":"box","text":"Cer tain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":138,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"8dd2a120-d5ae-4b16-bc2c-1396fafd9d73","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":"cefa8bca-4a1f-4d4f-9722-38eecaf53663","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":"bcf17dc6-b437-435c-9293-e27a38f1de54","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":"dc4fcb56-1bac-48b6-acbc-27476352d093","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":"e25c1074-628a-4634-a5dc-aaf22c6e10b9","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":138,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"9cbfa57c-a19f-4474-a07a-2dcdb9e00ee8","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":"52b01bc1-136e-4885-a2ea-05f60fcaef86","block_type":"box","text":"II-100","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"861c7f68-9aff-4601-92cc-10e6cdcef407","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f1e8578c-1ab8-4b24-ba12-d2addccdca28","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":"b5805ef1-04f2-42d6-9334-74f9a024449b","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":"395f5059-567e-4b1a-bf45-2c1f3e052005","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":"f94b7193-8de3-432f-8c1e-0ed701f9e0db","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":"d768d55c-df26-4558-9f32-b2c01fef8746","block_type":"box","text":"Reduced Initial Sales Charges","page_number":139,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"53b2c886-db8b-4321-8a1e-502dcff5b2aa","block_type":"box","text":"Cer tain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":139,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"798532e7-3a54-4347-b5c5-0654dcdb91b2","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":139,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"1c573930-4b86-4fb1-9d67-44a86dfdc87a","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":"f13b4262-5d09-4bc1-a093-c16b346dff54","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":"8ed4610d-83fb-4a94-bc63-24479a227ac0","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":"67ce44b1-29d3-4784-b9de-12aca3c5b530","block_type":"box","text":"requirements of the new share class. Cer tain sales load reductions and waivers may be available to customers of","page_number":139,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"a20435e6-9f57-41f4-ae75-edf8dfcaaf55","block_type":"box","text":"cer tain 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":"7a9ff2d3-860a-4c9e-99a6-9adf57f4ca9b","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":"50a62d4a-e4ed-4285-a7ec-7331294e420c","block_type":"box","text":"Reinvested Dividends.","page_number":139,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"63a899b3-4e24-4477-b0e7-69f42ff6e6e4","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":"3ce781eb-c5e6-4d7b-bb83-ef0c8ba1a739","block_type":"box","text":"reinvestment of dividends.","page_number":139,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"a7b245f5-9e24-4e64-b6e5-114a9e008aa9","block_type":"box","text":"Right of Accumulation.","page_number":139,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"0768399f-96f7-4742-a781-204f5e8ea58e","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":"ca74e6d6-ee94-4b84-baa5-96d3dfa0806e","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":"8ec154ae-7f38-4450-944a-20ca5f7c293d","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":"3e5d1e4d-2767-4031-8e01-a6aac090af58","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":"01699b39-8cbc-4295-95f1-45b85b88be72","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":139,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"57e456c3-332e-4dff-903b-4d2a209d7d8f","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":"7ea2e703-229e-43cd-8e2a-ceac61260645","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":"1b1744cd-2b19-4716-840d-a1a56c996151","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":"f977390c-74f3-4a73-98d7-5300b7baa3da","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":"3c14023d-bf3a-4241-8528-29459858d528","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must aler t BlackRock to the existence of","page_number":139,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"54954ac2-0da8-4df5-8f47-aeaf171db0e3","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":139,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"caea13aa-e873-45c7-be2e-c3395fe8ec19","block_type":"box","text":"per formance 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":"ad7a732d-2aee-4625-af6f-b3e1dc6bcfd9","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Shor t Obligations Fund generally are not subject to a sales","page_number":139,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"7c94d49b-4f40-4107-ac33-a5a668adbece","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":"d578a6ac-ab74-4ed8-a20f-1a8f739c1ffe","block_type":"box","text":"in the Index Funds and BlackRock Shor t Obligations Fund may be combined with the amount of an investor’s current","page_number":139,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"370dc5ff-28bc-4360-9258-f77d37c2c716","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":"09f7f8fe-84c9-4ed7-89ee-d8ebd8afc117","block_type":"box","text":"Letter of Intent.","page_number":139,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"cd3309fe-3fad-4551-be86-c094119513b0","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":"62d518de-74d9-4bb6-82cc-08bf0d015e6d","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":"bb73ca07-4d03-468a-b71d-5947c2fb751f","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":"535bee1a-d51b-4d7b-a5bf-1b8748066cea","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":"7fd7ec6f-8375-4e94-a90c-d485bf096e20","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":"503d6c69-76e4-4420-b838-64742c3884c4","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":"c842e21f-ee6a-4fcb-9898-ca5833e3c06f","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":"97111b19-3290-428c-8d88-40b7c25161a9","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":"c9f7ea9c-e992-4011-b38b-97952e7feb91","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":"9b99feeb-6435-4b1a-b627-b6502318136b","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":"17b6e4f5-d5e5-4ac0-abb2-263971ff84f2","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":"f937b720-6220-4393-9232-36279e4e3311","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":"ec655beb-8e16-4b37-b0cc-7b6ecfee88bd","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":"03b40e3d-7d59-41fd-97bf-7b57f7bab2d5","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":"3b03c120-261e-4ae9-b0da-c67fb284c2c7","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":"0765c863-a873-4434-8382-c38b810be038","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":"00abe7cf-61bf-4b0d-9e19-2068cc1fe53b","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":"4f835af6-67b9-477e-8e75-a6a004b6da2a","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":"49cb46b2-9786-4100-80ee-8ea65a234a4e","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":"1a82aa83-510c-45cf-98f4-052df735412b","block_type":"box","text":"Placement Fees.","page_number":139,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"07721f1e-8896-4da8-9c1c-6493b5647b3e","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":"452eec39-2b21-4f69-abac-8cbaac398a90","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":"b994ac7d-7a83-44ef-bc3c-d385534477a9","block_type":"box","text":"II-101","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"20d5f187-c4ca-45bc-b104-a17881ade6c0","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"08f1cdb0-15d4-467c-915b-0b9354001935","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":"5b9d23cc-bdb6-457c-8671-2837d89db8ed","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"cd780cff-d5dd-4ede-9877-d72b77b51a35","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":140,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"2cc2a6fb-81b3-4beb-951b-9888d66c4d40","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"4b813642-dfe1-446a-b5e6-c065dfc3c39b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"bae8b79b-fbec-4a2a-a831-89c49e41998c","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"761298a0-a2de-4277-9ddb-d49d90db8512","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"4f9b8d79-e8a2-4aaf-abe7-50aa881d54b2","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":"d93676da-95ee-4443-8706-dffba87cd80f","block_type":"box","text":"Por tfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares","page_number":140,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"75a4fdfa-af9f-4483-8895-35ef04004043","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":"14c30bc1-0285-4c9a-9191-30b3d5bbf971","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":"a684bb67-13d6-4de6-9e38-e186a3423771","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"d4bd134e-3d06-43aa-aa72-0d462e2b1e92","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":140,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"bc6d6b41-eb5d-4529-b427-fb9b7655ded1","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"a8e5044c-e553-4d0e-9472-677a9c26979c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"08cacee5-780d-44ca-b2b0-bc816fb710ce","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"b87c4998-081c-4199-8a70-942cf6e676a4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"3c400833-5118-46fb-a366-b6d61773e5af","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":"e4cd25b0-267c-4c08-a367-3c49b14fc930","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":140,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"ba33dc76-e5f4-4621-9685-f0b6b029f0f1","block_type":"box","text":"SM","page_number":140,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"4067672f-a97d-45c0-b843-314d986425e5","block_type":"box","text":",","page_number":140,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"96d94314-7e23-4ed9-9d15-189aa3041351","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":140,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"94b49e28-4c1c-4a13-80a3-9f4eac4d8d72","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":"fb9b0f4b-8834-40bf-aee5-a363eed14748","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":"e5e9265b-947f-47de-b69a-e1eb7c544d0b","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"cbbb3b22-33b2-495b-adf4-ca69b0137579","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":140,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"262b2aa4-6576-4499-b5c9-83bbf7e3da2c","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"f4513f72-0219-4784-95f1-1fdf5932c506","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"265cd8bc-5aff-47a5-8324-63085da71523","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"1755884a-0847-4c4d-bb6d-301ea484d57b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"d42e6bb7-7a5b-42cc-9320-ced29e4412f5","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":140,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"d0bca81e-a80c-4528-b1b5-34dd19c4e05a","block_type":"box","text":"Mor tgage 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":"b35172d8-2dd2-4ec2-a388-f57363286809","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"e6452e57-e69d-4bb6-bd67-28cc0f7fb90b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"c7592b6d-e102-4ecd-8b03-fc0d94ab9467","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"1474f9c7-0b6d-42a1-900b-459b5cfd3c9d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"21fa50b1-51ea-4c1e-9040-8c7ea6a7c2c8","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"99f38082-5cbf-455f-bf8b-f894d76699b5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"756b6f5f-c145-4755-84cd-78e94f009fe1","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":"c639a13f-d943-4f53-9b35-23c582960510","block_type":"box","text":"may be up to the following amounts:","page_number":140,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"72e33a8a-02e3-43f0-bac3-8d44dab69766","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"9c06087e-d3e2-4de9-8068-2882a7160e37","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"fbc9c928-cf34-47eb-93eb-46825584d331","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"5fe0bf1f-a4e6-4dab-bc4f-d9811307e1bb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"09aeafb1-b84d-4751-8a3c-d574747304f3","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"08908558-bd74-4dea-b174-c22c00b1266d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"ba7a2523-6516-4fe9-8ba4-e62be2e62ada","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":140,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"449841b7-069c-4458-9fc1-80bc8eb4b6f5","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":"b0ad39c6-f7f4-43c0-b73c-a7b673f81c79","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"d03a7a68-e4d6-49c2-bf78-6136f9fac278","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"f8bfcbfc-7172-4038-bea8-56328e05959a","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"e1f2ec60-d24d-4e85-982a-caae612a93ec","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":140,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"18ccf111-1edf-42d1-8cd5-60ca8ae7d9ab","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"358da9fb-1fd8-4532-83b2-62a80565c18a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":140,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"88e68c05-2bbc-42d8-bb29-362fef1623bd","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":140,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"0544dcb8-1c4a-4337-9eb0-3d54355899b1","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":140,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"ee58a710-cc91-4141-81a6-9d15f0882021","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":"602c21f5-23ab-4438-b6f2-7ce5a80c0733","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"f434395f-ccfb-4a1e-a466-63d64d84e364","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":140,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"6fb1dfd9-d410-4df4-bbd3-770ee702843b","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"fd67d990-10a8-434e-a622-0aa3838e401e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"9eb31b30-7b93-4c9f-893e-669ff4041dde","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"2f0f2c05-3e3d-4b56-80b1-629447efb0ec","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"47dc6dce-a450-4f15-945e-38e4f5ad73a7","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":140,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"bbebf71f-5097-4d85-96e7-2b6a93b2cfd8","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":"badd436e-5141-457c-b089-91036c0b8941","block_type":"box","text":"$250,000 and above . . . .","page_number":140,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"a0e444b3-3229-40b3-adce-f1bb0e938e0f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"39cbbc3d-6287-4c6c-b08a-16473e453ed7","block_type":"box","text":"II-102","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"62f63763-a398-4cea-a738-26a692a13ec1","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bc9dac5e-e9d0-4ed4-ad44-f2b82db72cf7","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":141,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"210f3186-7b5b-4eb2-91f5-f477c8bb339d","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":"23947ccd-da9a-49e9-bc5f-233a4fb681a8","block_type":"box","text":"the following amounts:","page_number":141,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"15e503e3-cf3f-42aa-b133-302543a3c5d7","block_type":"box","text":"$100,000 and above . . . .","page_number":141,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"e68c2e10-05f7-41e2-9e3c-98a78810106d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"2eac4eee-851f-4464-ac6f-cc5bc88c4ba4","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":141,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"c436cf4b-ef49-43f7-aca9-2ea7cb40ea7f","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":"393549bc-4703-4cdd-8148-8eb66377252c","block_type":"box","text":"$250,000 and above . . . .","page_number":141,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"902302b9-6c9b-4507-83b5-199fc3ba839b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"454c47d1-dfb3-4264-a093-0743439e1b44","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":141,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"03959342-2c81-4f8c-85fe-4cb85437de56","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":141,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"8e1b8aec-c82c-4d20-b48b-aaeb99ba83e2","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":141,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"2358e679-d181-4d91-9cee-defd38499da0","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":"2172e383-13a7-4ec6-b863-5064b1686754","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":"1c941a86-ab23-4663-b870-7fa5a763b15e","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"b4a2f1ff-3e2c-4543-b496-a13b233e027d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":141,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"ff199b72-581b-42d0-a04c-54d2200cc8cb","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"d422c288-9cc2-414b-87f3-3c20fa90af90","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":141,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"ef948202-f019-4144-9127-8aaffc7201b8","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"eedbf60e-33c1-4c35-87a7-befd135e5d90","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"94ce3582-6892-4d38-a888-38097573d8e0","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Por tfolio (for shares purchased on or after","page_number":141,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"f9d26a64-917a-42a1-95f7-2c22b5bfc084","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares purchased on or after July 1, 2020) of","page_number":141,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"de598377-0867-48e6-b313-276fc219db37","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":"1014d497-30d4-4a76-a590-c1aca207d627","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":"d98943c1-2ce8-4ba4-8512-5072581f7f3f","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"3600926c-2485-4831-bbf5-02532d094bb2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":141,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"cbcd041c-3ad4-4bcb-a25a-f64ee2ce52f9","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"5c8feb15-a3a1-47cb-9922-65405d60dcca","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":141,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"35f825f3-34f7-4746-8f04-1e8052c96e0d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"4086555a-6c1b-4cdf-bfd3-a310a21c0535","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"175bbc0b-baae-4bf5-9595-4ad424853992","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":"1b3bd011-da3e-4a60-9e8b-e15099a5c4a5","block_type":"box","text":"®","page_number":141,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"21aaeb15-62a9-4f87-b3f8-0485fd4f6f80","block_type":"box","text":"Index 2030 Fund, BlackRock 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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":"0cf79874-7192-416d-9ac9-6ff69bfa40c9","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":"d696aa92-aa2a-4ae5-9328-b46ed1b5a29b","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":"eb8beec1-bdc0-4818-aa02-321a40183b66","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":"992b5c05-020e-4291-a019-8b6758d36bfd","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":"b4d1b5ac-33a3-4017-8573-c5b7e776a186","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":"d8ebdafb-ebc4-4e5c-a687-12c98829e339","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":"e3534c6c-7f28-4ba4-b4c2-ab50121aa22a","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":"40a47f03-2b55-43ac-a525-b89623b98610","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":142,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"da72c013-1cb5-49f5-94fb-bd6f28ab9547","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":"82eb246a-6d8a-45e4-ba57-2cb19bc3c649","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":"4b4d118e-3712-45fb-bad7-300fce81e8dc","block_type":"box","text":"spouse or domestic par tner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":142,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"5343ac3c-6e76-47da-982c-259f59177ac2","block_type":"box","text":"plan for any of the persons set for th in (a) through (d). 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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":"5cb2fbc6-36fc-43e6-b823-8a5aa9685afe","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":"bc30905e-95e5-4f37-941a-08c0c06df16a","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":142,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"159bb779-cd15-423e-965a-fa1425557544","block_type":"box","text":"Income Por tfolio 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":"a1223d65-14e9-4906-92f5-1d9060535db6","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":"090d78d5-be1a-4095-99a7-f4bbe5e77f78","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":142,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"4ecc52e9-efa9-473e-9b28-69b79b485d8d","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":142,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"cde1c3a3-25f1-4ff5-99f1-fa8caeb5ec7e","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":142,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"1c1512a2-9ce3-4c60-a358-6fef659966f7","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":142,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"4fc547cb-b4c8-4cae-8706-14975682f170","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":"9be33d81-ea7b-40e6-b9ca-86748c40412b","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":142,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"1df9cf54-0ad6-4ae1-a6fc-cd983e741c7a","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":142,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"cd0c609f-ded0-47de-ac8c-e2842911433b","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":"ee9ca7c0-20d9-434e-87fa-e909e5c7710e","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":"6145cb2b-cd98-43be-a125-fbeac4733e5c","block_type":"box","text":"shor ter 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":"624c8529-c248-450e-9bf9-2419cf8d1fc9","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to cer tain redemptions of Investor A Shares of the Index","page_number":142,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"0dcad851-a613-4276-b821-e0e2f4823659","block_type":"box","text":"Funds and BlackRock Shor t 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":"ad159fc3-17ce-467a-8ab9-35366a7ff7b4","block_type":"box","text":"por tfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":142,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"5d8ff56f-5f06-433a-a35b-363522de4f72","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Por tfolio”) as par t of an investment of $1,000,000 (lesser amounts may","page_number":142,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"3ce00b3b-1aa1-44b5-8a92-dbe875b584cf","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Por tfolio) or more. The Investor A Shares deferred sales","page_number":142,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"d78fc802-524b-42f5-b1de-1bb7f545fb91","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":"4b253137-8cbf-4ad6-9c16-106808ed12a8","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Por tfolio (a shor ter holding period may apply depending","page_number":142,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"60026122-e11f-4ac3-af15-b41ecd3d98ad","block_type":"box","text":"on the Investor A Load-Waived BlackRock Por tfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":142,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"0cc2e620-b20f-4583-b246-f3a02fb3dd90","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shor ter holding","page_number":142,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"90584ce2-003c-47d8-be37-102877fde80a","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":"e5b5a661-8e0a-47d8-996a-641ec8e7ce3b","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":142,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"b9a6844e-0efd-445b-878c-3c858e5acc5f","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":"1779f665-80f4-4cfa-8afc-cc1575781199","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":142,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"6fe06bd8-e805-45be-919c-3dd1b363c912","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":"8b2425fd-2cc3-4a8c-8cb0-c81c8c161a3f","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":"bba3cf0d-1a00-4435-837a-c2768df22972","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":"b14674c6-37db-477d-9136-ddcd3664771d","block_type":"box","text":"cer tain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":142,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"9ac93332-4794-435a-838a-23d4f0308b9c","block_type":"box","text":"shareholder’s death or, if later, the receipt of a cer tified probate settlement (including in connection with the","page_number":142,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"ecac5364-2749-4adf-a12f-d26a4a4bb984","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":"841eee26-1f39-4fbe-b33e-7a051c8d7248","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":"58f58d88-7e57-4bc6-a2d7-6ac93943df41","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) cer tain redemptions made pursuant to the","page_number":142,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"3d7793c6-bb3d-4387-96a1-9322d28d2643","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":"e7180818-1e70-459b-9f46-10862baa091f","block_type":"box","text":"II-104","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"dc0b15ef-4a2d-47eb-880f-5c06f68bdd2e","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"56c163e4-4520-4c4f-b078-71f26ad42765","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":"07f1a814-808e-4c08-8af2-69379fe56f10","block_type":"box","text":"the absolute discretion of a Fund.","page_number":143,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"56b1fb9a-bb07-4c4c-842c-895a7b4331f2","block_type":"box","text":"With respect to cer tain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":143,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"91be8b1f-aba2-4cad-8542-682851601b5d","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":"25c13a02-19af-4364-9350-957978f9bbf1","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":143,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"56dc5b69-bd98-4f13-9a20-32be0750584a","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":"7f1f60e5-645a-4a1e-9f1a-f07c86164fc0","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":"ab2e9c15-d3ab-493a-be4a-14d0e3056e4b","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":143,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"65b6b5aa-f5ce-498c-9ffd-d83f318192c8","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":143,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"f18a3cbb-747c-41d3-ab42-71ddafacbfd4","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":143,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"1ba33366-ba0f-47f7-b980-416c2aca4fbf","block_type":"box","text":"Oppor tunities 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":"5890ea58-a755-4a0b-9e88-f2aeed3a88c8","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":"16cbf18e-e64b-4edc-83f2-023df55eb7a0","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":143,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"2960638a-9ae7-4eae-96cd-6b2316fd2e94","block_type":"box","text":"Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V) or more of Investor A or","page_number":143,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"00ef8abd-0f75-4766-b6c7-4376ecb3dafd","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":"eee7236f-8c21-4aaf-a799-3049584f8ec4","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":143,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"c320d675-ab3c-46be-bfa7-3b8299b79e2f","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":"cf956149-2b0f-4554-a3d3-ada66047ee1b","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":"ef2489b9-00cc-4a28-986e-1e2f98262bc0","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":"6ad0eb59-3ceb-4053-9b82-23cdb8182d96","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":143,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"2685b70b-89e8-4d37-a698-616a1c2c438f","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":"2e60cc25-c49a-4c40-8357-2905a414562a","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":"3b4ba0e2-8edc-4ff1-810d-42a0963481ea","block_type":"box","text":"public or private investment company.","page_number":143,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"b5b145a1-ce68-424c-9acd-2f836e02a917","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":143,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"cb63a1d3-f9ab-4b53-9df8-1c62c5f8eb2e","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":"7c0a47d8-307d-4a0e-8307-90fb5b0518d6","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through cer tain financial advisers, selected securities dealers","page_number":143,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"088c9f43-6e83-4e4a-81c4-bf7d8aaa4dea","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":"a61badf1-598f-4852-a8c2-75a8981cc74f","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":143,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"1657e7fa-2330-4e53-9b98-d1e304140e17","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":143,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"8c0d18af-7e27-483e-96fb-4ddf7b3f4b3a","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":"8d76b6f2-4675-46e8-85c0-c3aaca4a6898","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":"c6936aaa-8f0b-402c-81d0-352684c7d5ed","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":"fb7c92a0-aad2-43c8-84d3-662ae9e29ebf","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":"95a03268-2f0b-4ac9-aba9-f27dff8687d1","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":"ad1a77f9-ca38-4b39-b405-dc7d30be7e9d","block_type":"box","text":"intermediary associated with the account.","page_number":143,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"74c77053-9df6-4ed3-83f7-66c9806c2a32","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":"8495dd4d-16cb-4f59-9b48-b9469a3a4de8","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":143,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"0a21d132-cb7e-4e8c-ba50-5488d25cdaa5","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":"90473452-0dba-419b-aeff-1309650baed7","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":"b8acb7d0-35ad-4494-bed6-9874a92497d9","block_type":"box","text":"CDSC shares.","page_number":143,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"d2a2d7de-08ad-48e7-b573-7fc8241471fe","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":"2fe223aa-96c1-4871-a432-96b56d10c741","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":"cec22b8a-21f3-45c8-ad2b-1f1999df6a92","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":"430c844a-8fb3-4ab8-871d-dccd68e1e9f7","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":"14468906-6a36-4c55-adef-8cc989c1349c","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":"11c4ccb9-54cb-4949-878a-7e841f40229f","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":"297b78ea-80b2-4085-aead-688cdf56b393","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":"fb93553c-6bee-4dd6-867e-414f3972b359","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":"a753b507-2302-4950-bf43-1e9e4366c41c","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":"b9ff3350-c143-4cff-98a8-653eac38311b","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":"0b1d9bf7-ac92-4e9a-b1a6-7d7c759d4b8e","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":143,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"13748c20-3e70-45c5-81df-a6a60fbda829","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":"82e2d5fc-d93f-40d5-b476-09eb960e4230","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":"2f41541e-ab57-40af-ac54-9d4fccefecd2","block_type":"box","text":"II-105","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3a4c33d3-fc68-4e60-8224-951fbea30ddf","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c2bfe419-0711-423b-b2b1-1f3da89d346d","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":"4658ab6b-b107-4c40-911b-a13dd30d7922","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":"c0dcbce6-c216-455c-b74f-fb3ba3c2c794","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":"af5bb132-ef99-44c8-85b3-e6489a7d4658","block_type":"box","text":"Investor C Shares held for approximately eight years will be conver ted into Investor A Shares, as set for th in each","page_number":144,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"f4434f14-3e0d-4574-904c-dc9f65103ab9","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":"98266fc5-e66c-4744-af8a-d106cfb6f505","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted to","page_number":144,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"1c0b28d0-9038-4a69-b92f-0ac796d5f10e","block_type":"box","text":"Investor A Shares.","page_number":144,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"3ffe9843-a318-4c75-8828-5754890fb345","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":"fe0938a1-e87f-447a-80f6-18cf592bd890","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":"9578321c-ad72-4383-920c-7759698cfda1","block_type":"box","text":"of each Fund will conver t automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":144,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"f143d32e-6313-4fde-9f6e-da46c02b30a1","block_type":"box","text":"Cer tain 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":"24c3b5d3-ece6-48bb-92e7-899ef4e393da","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":"cf5bf77d-1b52-4a29-9194-fd042bd41759","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":"7dc304e4-5d7a-4032-b1e9-a1f80b2dbf5f","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":"45172771-aef3-498e-8dbd-a133def3002d","block_type":"box","text":"cer tain 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":"8eb01662-5cb9-4ce7-822f-6d058f698314","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":"ce2a0f4b-3c41-49ca-a001-f1ddabdfc009","block_type":"box","text":"Shares held as of the Effective Date will automatically conver t to Investor A Shares approximately eight years after","page_number":144,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"18a11c30-2e8b-446a-ab99-847bfb3a34d8","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":"c42a37d7-37a3-4697-8a1d-8ceb9e39909c","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":"814538dc-e329-4af5-868f-b8606cab2051","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":"d845fb8b-e8c0-4d3a-b2ca-134e7926ce9a","block_type":"box","text":"any such shares will conver t 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":"d324677c-4c96-4e64-b9ee-ea2c2c17bc6b","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":"cd97fb2b-5093-41fe-a647-d5e3d4ca1d7e","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted into Investor A","page_number":144,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"6edc6796-3307-44be-8c4b-537c10c7a2de","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":"8748c36b-631b-40f1-a4af-5855f6f1a3e1","block_type":"box","text":"“Investor C Conversions”).","page_number":144,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"6397b79a-c692-44b1-9397-3ecf33075a96","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":"e2deaee8-17f3-4f77-a799-eaaaa74523e2","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":"7041c1fb-3bee-4d7a-80f5-3414837d60c6","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":"2c1748ea-a974-4b68-8ecb-bbe5b17a5573","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":"56d78905-8432-4c41-9cd7-08e06b3cecc6","block_type":"box","text":"Shares will also conver t automatically to Investor A Shares, as set for th in each Fund’s Prospectus. The Investor C","page_number":144,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"f33760b2-f8a4-47dd-890b-977d6cd13d47","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":"ac989078-8597-4e55-83dc-819f78a25775","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":144,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"e1cd8fb5-bfac-4afb-a1ae-ac3505721b71","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":144,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"5755d784-62dc-4f50-b294-49088568804c","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":"0959f8dd-3861-4b6b-a2a5-459b44c91ab8","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":"a98ebcb4-4f6a-41bf-9799-2ee9f027295f","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":"fbe5f82f-da28-4972-96c6-d6688de5a058","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":"7be8eb5d-0b7b-424d-ae25-5d7c7491ff16","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":"ff15ec30-bdb1-4d5c-9d52-b1576b97aa94","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":"4d39a0e5-e87b-465c-bf04-e2c46a868650","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":"ed724828-66c5-4130-9e3f-0f0b390742cd","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":"3ad3af27-1460-4780-851b-bfc60dac6e9f","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":"29e43f5a-1e72-472d-8dd9-45dc979c7a5e","block_type":"box","text":"redemption.","page_number":144,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"6a60ca7f-0ae0-4e0f-8fea-995d89661cbb","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":144,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"f94a834a-517f-4c81-8b40-8bdd56c48f8f","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":"008e725d-6cb1-4f3f-b1b9-45d816b556a1","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":"4098ef9f-2a04-4d89-a283-5b12aa58797e","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":"c46894d7-728d-412f-a665-5b33e3bd2fb0","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":144,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"8c0c73b1-6164-4d0f-8537-b8ecbb3531bc","block_type":"box","text":"cer tain 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":"848a99e8-d351-4d31-a0f6-657fa91de971","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":"e7a1be9d-e031-4d60-9d5d-5e1157b7f730","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to cer tain","page_number":144,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"c8c61b26-e8d6-4bf2-ab9c-cf374b35bd36","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":"4c13699a-2241-409c-b695-01084153d1d0","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":"3c9e8bbe-c6bc-469d-b0e3-c19c9446c602","block_type":"box","text":"II-106","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0d1f7fc9-b141-4550-b5e8-3fc3ab05e797","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3a302b7b-2fad-4ac1-ad45-68d82f7eb928","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":"acf9a547-dfdb-4a3c-9730-baf2c9e6d8db","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":"7dd5ead8-6553-4ef9-b901-e0055fca7e10","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":"dffd381a-6fd5-49c3-b241-b6be815b96ac","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":"216d9464-15ac-45a9-b515-33054cb27fb9","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":"288b1ac9-82cf-49f3-9a0a-244b2459c647","block_type":"box","text":"limitations set for th 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":"9096d848-9e69-400b-88f6-0e44987e4001","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":"953f6976-6b22-49b7-b9c4-97ad340fe992","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":"acf97a49-5871-45db-b113-913b10b4cd6f","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":"27f2a8e6-1010-467d-8891-091f3baee8e5","block_type":"box","text":"Cer tain CDSC waivers and reductions on Investor C Shares may be available to customers of cer tain financial","page_number":145,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"58be307e-6f9e-4182-8bda-378a653f16e9","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":"a45f1960-95e3-4532-aa99-3afa91c63093","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":"96a57f15-8fb3-4fcd-ad94-199f6b69afb4","block_type":"box","text":"Class R Shares","page_number":145,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"ee42483d-e97d-4068-90ef-f9f10349fafc","block_type":"box","text":"Cer tain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":145,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"ad57d221-5f60-4fba-8ec7-49fa28d87005","block_type":"box","text":"available only to cer tain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":145,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"343f975e-71a4-4aff-9a84-ba58746e5142","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":"6da07e41-11c9-434b-aa8b-78d8eaf544a4","block_type":"box","text":"0.25% per year. Distribution fees are used to suppor t the Fund’s marketing and distribution effor ts, such as","page_number":145,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"9ca77142-aa68-49cf-9bf1-c3592102fa51","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":145,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"f671d41e-9b54-4c7f-a085-622745116207","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":"722af04a-bc42-4b40-b8fb-4570a80fb827","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":"94eb822b-8d4a-4af9-b42e-c5c865f6cef8","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":"bcc5758f-0589-4e63-93a6-162526ab25b8","block_type":"box","text":"Class K Shares","page_number":145,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"96db08b2-4883-4f39-bf86-4ef3e932f1c7","block_type":"box","text":"Cer tain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":145,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"ecf7261a-85df-4e58-afe8-19ac0a58eb85","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":145,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"98ac0b1a-5165-4b58-b551-4a16c4b17a92","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":"cbd6e598-099d-4142-9473-9ba5fc6a1b49","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":"4ff12d85-0f92-490d-9c40-55bcfc9c3f3a","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":"78f2a0e1-b195-4e48-aa88-104567b8f737","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":"fdf2c5f6-31df-4d60-be27-bc628fa8bfa1","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":"760cf25a-5ccd-4782-94bd-0973d721e9fa","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":"226f7641-739e-46f5-9878-5e281aa84972","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":"f49d3f5a-111c-40d2-917f-486d5c1712d2","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":"179a21ae-e941-4709-a7c9-0d81543b0702","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":"116f55e6-85bd-4483-84fb-3331e470959a","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":"067ac69e-a08b-4352-8c70-01f612541ddc","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":"268c0746-b482-4160-9cf9-818e5a05cba7","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":"054e4fa4-321e-48d1-90ce-f10f6ef3bdfe","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":"833cb7d1-0e6c-4f55-b622-b43df13a0749","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":"828d1f7d-af1d-49f3-98b5-e5db6767c30b","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":"56b17794-d675-4836-8a2a-cd009f4fc3df","block_type":"box","text":"distribution and marketing agreement.","page_number":145,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"57df388d-3ed3-4452-928d-4e0b554eedc5","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":"0fe0d311-2b7e-43c1-9111-2ee4df9e15d3","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":"d5363d36-1536-43fd-83ab-791ed63c353b","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":145,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"1ec2553c-e3d5-4ffe-b564-7175c9285a2a","block_type":"box","text":"Class G Shares","page_number":145,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"a284702b-c87c-40fa-b415-d57ee18e88d2","block_type":"box","text":"Cer tain 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":"9f50b50d-8150-4527-9473-7100f6d37aac","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":"3ba4d679-ee33-40b5-8742-e75e889ddff0","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":"44b9ecc2-bb0e-49d6-a4ba-7c384b291d5c","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":"b20236ff-ae9a-48f2-9ad4-96eeff4e7809","block_type":"box","text":"eligibility requirements.","page_number":145,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"6eb48d19-2b16-4ca1-b927-486e5c594ff1","block_type":"box","text":"II-107","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b88f5673-2f53-4464-9934-a2007fc4575b","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3e15c021-2a19-49c1-8d84-6819e01f741d","block_type":"box","text":"Service Shares","page_number":146,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"f0c851ec-c761-4b92-9449-73517ee05bdd","block_type":"box","text":"Cer tain Funds offer Service Shares, which are available only to cer tain investors, including: (i) cer tain financial","page_number":146,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"d1da9104-aaed-4b1a-b21b-b2620bd6b40f","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) cer tain persons who were","page_number":146,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"27c2509e-06f2-4493-9a79-026ecdb0f574","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":"47c27a3c-ed17-439f-8729-0279cc888146","block_type":"box","text":"®","page_number":146,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"d627eed3-2c08-4ef1-ac5e-cca0ed642f38","block_type":"box","text":"Fund in 1996; and","page_number":146,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"47944844-80f2-4fb5-a7de-e217f78535b9","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":146,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"a3b0b5ff-4e5e-4756-b0f9-1d7eeb234778","block_type":"box","text":"SM","page_number":146,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"a9b94cdc-c839-46da-b569-95a6501d519c","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":"46a9ac67-73a9-47ca-9ba9-d7504f197cf8","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set for th in the applicable Fund’s Prospectus.","page_number":146,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"12742be8-57eb-4e58-aebd-2cc75beb5142","block_type":"box","text":"BlackRock Shares","page_number":146,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"31a4aa87-38ee-4cf5-bc61-d5cac3208234","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":146,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"16fcca02-5a2e-444f-a901-8d38c5654fce","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":146,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"f720dcc8-b400-4bcf-b71d-f7c30fc4ee56","block_type":"box","text":"fee-based programs.","page_number":146,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"0a430d81-bf88-4fa7-9054-2d4124cd0047","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":146,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"06f4b217-3dd9-4509-9280-8d45c486a19d","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":"60f21966-da40-44f8-a1ce-61ee6a0f4ba8","block_type":"box","text":"respect to cer tain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":146,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"435e686a-77cf-4507-9843-56745780afff","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":146,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"fbe9a929-1917-4b80-a157-81ec056ba116","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":"86a93c4a-ab18-42d9-9148-4448275d5b9e","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":146,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"ac096e98-3983-4b76-993a-d620708bc68d","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described fur ther below, only Investor C and Class R Shares","page_number":146,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"2a88c95c-41db-4283-a317-ca1e656bcc4a","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":"4ada1ec0-f776-4bbc-93a6-3c44583f224d","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":"e01322ab-b70f-4d10-822f-c30f00146e7f","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate effor ts to effect sales of the shares, but it is","page_number":146,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"cd13455b-ffb9-4d3f-b3ca-cc7996a36416","block_type":"box","text":"not obligated to sell any par ticular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":146,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"a5d60fcb-aa90-4243-842b-5780fd299b56","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":"11ae50b5-d472-41b4-8078-a4ca351e7010","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":"5a17bdcb-85fd-41b9-a41f-77363cd7ef81","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":"4b0812fd-7112-43f0-9c5d-e535b7043266","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":"ee783b63-fb07-4150-9aef-bfd0d3b2e924","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":146,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"d400d547-9cc8-4e0d-aa43-1e8c6dee95a7","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":"3e705fc6-e10d-4ca0-b268-b8e08b5fdbfd","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":"479435fb-c046-4075-a6bc-b0e722b0ed55","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":"69e64431-2599-4eb3-8b52-0cadcbbc4b84","block_type":"box","text":"The suppor t 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":"94b65ce4-9519-4000-af16-7ac66a44ef20","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":"95beba1b-5306-4add-b31c-2210c7cca9a5","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":146,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"80f07350-a737-4122-beb7-233a83e30113","block_type":"box","text":"per taining 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":"3f7db4ec-b82c-4777-9397-34ca290ebae5","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":"7df981fa-b8ff-4fe8-8cb0-7300a0c7f5fc","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":"599cc3df-3405-4ba0-8b0d-015716265a89","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":"395916b3-c0f8-42df-938b-21a0b395af2e","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":"4c545205-fbf2-441c-b7f6-c16692746a6f","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":"2c0c36b3-c362-4360-83e3-8d514abe9ab6","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":"5cb8a4f6-625a-4182-b50b-0952bdb70650","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":"b0f66bb4-b7d2-42e1-9348-3fa4c1f2fc0b","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":146,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"fc8ceef3-85f5-4258-8e02-750a39a9ae9e","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":"f37e374f-958a-4800-b5fe-c79436d1f842","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":"6f14a364-157d-4b31-8558-c64570c4a023","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":"f0ee5fb7-7152-4848-8328-5496b3de4505","block_type":"box","text":"expenses, adver tising, 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":"24ca6a2a-665e-490e-b79a-98586a43cbe6","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":"120863ac-1e1e-409b-ac62-cc8da56556a8","block_type":"box","text":"compensation for selling different classes of shares.","page_number":146,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"1f8b7ec3-2492-4045-a33f-5b454f85dcdf","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":"a0d73d3c-1a9d-4fc9-8ea8-51fd4ad58604","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":"18b68c5e-f292-4255-b69a-30a779ba8ab1","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":"5e2cade6-e7fa-4966-ba97-8810babe4275","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":"926c6465-7fde-4e97-824c-3ef23276064d","block_type":"box","text":"II-108","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"dc35e7c7-f3fe-45de-bdcc-594cd9043739","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"56ef0e9e-3811-49db-9ab6-4a2b80782896","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quar terly","page_number":147,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"81b5d0de-55d2-4505-bbe3-d2dd5d50b583","block_type":"box","text":"repor ts 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":"a44cde78-d29c-4271-946b-f2363336d681","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":"dbe039fc-44a4-4928-8578-8714c5d5698e","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":"838b9739-4b79-4bea-b864-2557208c2739","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":"a234329c-549d-4300-b9e7-d96e68ca0171","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":"e2f9edee-05b7-4988-a1b5-70bdbd170aa4","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":"e71d7794-5a1e-41e7-87f1-5101ee684612","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":"0eba2e46-19cf-4e49-be36-94ab5f4ad02a","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":"62de936d-51b6-4ee8-8e22-6d2188b2868c","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":"3da8e383-2e62-4bf7-8add-003f7e4bd3a3","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":"9eef773d-358a-4b25-8a82-0eabb0e42cee","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":"5fe88008-c2a1-415c-a027-0b0e62985be6","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":"84d20738-d0f0-4282-9b3a-eab47006dd88","block_type":"box","text":"Directors. Rule 12b-1 fur ther requires that each Fund preserve copies of each Plan and any repor t made pursuant to","page_number":147,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"bf3cd820-ed6d-48e7-9c3a-6dc772179216","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such repor t, the first two years in an","page_number":147,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"11d80ba1-dabc-411f-83af-9ad0ea59aa48","block_type":"box","text":"easily accessible place.","page_number":147,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"a5ee08a5-dd29-4d46-986b-006ce3e06f8d","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":"60ee389b-7f5a-4bd2-a65b-7fb59b0bb947","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":"7d9733b8-f962-4577-98c2-dab7aca04be4","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":147,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"4c4f310d-94bc-4de3-8a07-bb3a4604a884","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":"9fe670c9-1fc7-4eb0-8b19-f11412a91dba","block_type":"box","text":"fiscal year.","page_number":147,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"db2a1b42-b231-4f00-ab88-e81279726a69","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":"aafccfaf-13eb-4b85-abec-490d3c408499","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":"5134a180-74ed-4373-8577-6e9716f498e7","block_type":"box","text":"imposes a limitation on cer tain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":147,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"9d4ae12c-415d-45d1-9ef1-e6f96c3b1c80","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":"daa495b5-b9f5-434d-bcdd-60a5fb68cc8a","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":"743fc1dc-0096-4dbc-b8ff-23bf9bae74a7","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":"7a916ff8-496d-462c-ab63-9c59471b5f5b","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":"84de92ef-59da-45da-8330-71136002245c","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":"e07f8b7f-ac28-4f2c-9d3e-a01a12ce636a","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":"357ad105-ef87-442f-8d25-6a12d43dc1a8","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI","page_number":147,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"65a91a08-b0a3-401b-9ae7-f6a586dc2e91","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":"65538664-15d2-40b6-8357-4f92e5920f03","block_type":"box","text":"and Class R Shares of your Fund.","page_number":147,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"9dec28f9-419d-4b33-b76e-b942380a3193","block_type":"box","text":"Other Payments by the Fund","page_number":147,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"2bf67de7-46a0-4816-a54a-9b13b6a1a120","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":"1ff69873-618c-418b-8023-a965b46ca02a","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":"ec1992c7-ba10-4075-9e62-0c9e544d8ca6","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":"f05159e9-025d-4573-98c0-d5745e219499","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":"cdf59ae3-3b12-4e6a-a566-e738d2dc902a","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":"51ce0587-fb64-4143-a4bf-42f1ea013434","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":"515ab767-9cd9-4359-b8c1-1c89476ba51c","block_type":"box","text":"of these payments may be substantial.","page_number":147,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"c362233b-36fc-4159-b6c0-8a1129bdd54e","block_type":"box","text":"Additional Payments by BlackRock","page_number":147,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"4d65fe95-0cc2-490e-9469-561f95dc034f","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":"b2897e11-8060-4452-818c-47fd4ceee1b9","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":"30a70dc8-d78f-4af5-abce-389bd9a174ce","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":147,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"7d32a82c-73c7-4597-b996-b188d3cc9cea","block_type":"box","text":"obligations itself or may arrange for a third par ty to per form them. These payments, which are not made pursuant to","page_number":147,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"776a032c-61dc-43c1-9e58-469d3728372e","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":"666fba1b-9e6f-4d75-afd7-e1130ee749c7","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":"4e70bae3-91f3-423f-8f29-d36a4e4561dc","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":"f50cb652-3485-4d5c-ad15-ef4b07f9aa44","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":"482e0462-b359-42e0-b7ce-db7cdf364f7d","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":"d321acc9-d0b6-488d-8c7c-c561e640e8de","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":"9171822d-0bcf-4ea9-992e-e9ed358d29b3","block_type":"box","text":"II-109","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1da58edb-21d3-4e9d-8a6b-c71120dcb799","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"54260f04-8974-4892-948b-d2fbcd4a7904","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":"29e5db83-b13c-431d-859b-1bec85e487d3","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":"15f65bcc-f457-4ba7-a896-4991cacf51f1","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":148,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"a4efc178-4340-42d3-808a-60eb09a9ed47","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":"023bc16d-ba73-481c-b45d-25e7d7fbc71e","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":"86f120ea-7455-4774-b88b-cb6b96ba4be1","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":"11e0027f-c3b0-4fc6-881b-ea91741da0ad","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":"27ffad22-7f9d-4c5c-8642-bf84e2302ffc","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":"c67cbdbe-a898-4b3f-b6e9-1d777ba27529","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":"378c0fba-fa05-4f1a-a81e-ccec36ee03d4","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":"1e306c00-2be4-4c71-84e6-ec07344de3fb","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":"b8623f0d-ca5c-4c8b-85c7-1959e99504b7","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":"e5ebdb45-9e7c-493e-a8ab-9343abf8b7e0","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":"a3ba4a96-d751-4c04-a1ec-abbe8d1b506b","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":"fb1ca5ce-30df-469f-b4e5-3ca0ac5cc572","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In cer tain","page_number":148,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"e2521f04-ff7d-4f54-8127-1439c106f5d1","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":148,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"76e4f6fa-6cca-43f3-9db3-1bc23c06f2f3","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":"cbb0a284-8a78-46f5-b0ad-ef7a7a8929c7","block_type":"box","text":"cer tain 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":"367df05a-37c5-49e4-9fc8-6aa945912b15","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":"2d033756-485c-4c9f-856f-5bae45817fdd","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":"67622226-d3a0-417b-9849-cb37884a05da","block_type":"box","text":"Funds.","page_number":148,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"d229480c-4de3-475d-8b9d-3129b3cc1d70","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":148,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"c7845d29-145e-499b-b2a4-7d8e38f8ade0","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. These","page_number":148,"box":{"x":101,"y":415,"width":740,"height":11}},{"id":"c4e8e014-a1ce-4b2d-94fa-7f6cb1153479","block_type":"box","text":"payments may take the form of, among other things, “due diligence” payments for a Service Organization’s","page_number":148,"box":{"x":70,"y":430,"width":764,"height":11}},{"id":"57e4ac54-42cb-4ae1-b185-a710c1e632ac","block_type":"box","text":"examination of a Fund; payments for providing extra employee training and information relating to a Fund; fees for","page_number":148,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"d9739a86-4a02-4c6c-a932-cb1eb98dcc65","block_type":"box","text":"access (in some cases on a preferential basis) to the Service Organization’s registered representatives,","page_number":148,"box":{"x":69,"y":460,"width":742,"height":12}},{"id":"45942738-7387-47a5-9244-314b569a671f","block_type":"box","text":"salespersons or other personnel, including at sales meetings and conferences; “shelf space” payments for placing","page_number":148,"box":{"x":69,"y":475,"width":820,"height":12}},{"id":"6d724a80-1f1e-4f71-8e52-61a49a50ae11","block_type":"box","text":"the Fund on the Service Organization’s platform(s); “listing” fees for the placing of the Fund on a dealer’s list (which","page_number":148,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"1add3822-dde3-4b4d-a3ee-b95efed42913","block_type":"box","text":"may be a preferred or recommended list) of mutual funds available for purchase by its Customers or in cer tain sales","page_number":148,"box":{"x":69,"y":506,"width":830,"height":11}},{"id":"f12fc0d8-6bd1-42e5-937c-7e5e06b0a419","block_type":"box","text":"programs from time to time; fees for providing assistance in promoting the sale of the Fund’s shares (which may","page_number":148,"box":{"x":70,"y":521,"width":803,"height":11}},{"id":"e2079fef-c38d-485c-a645-b95a55780c41","block_type":"box","text":"include promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":148,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"8d91f596-9062-4b99-9394-399ec91fd48e","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of share balances;","page_number":148,"box":{"x":69,"y":551,"width":823,"height":11}},{"id":"992a76a0-9c3e-4832-9fbe-c3d35dfc7290","block_type":"box","text":"transaction fees (also referred to as “ticket charges”); and payments for infrastructure suppor t. These payments","page_number":148,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"97ff373f-6c37-450d-b3c1-5dcd194292d2","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":"8d216b95-74a4-4bca-9a5f-9496f631d87b","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":"4bda695a-0d19-4c8c-ac70-9c519fb416ae","block_type":"box","text":"B. Shareholder Services","page_number":148,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"5de2f0dd-18e3-4cdd-b5ba-d72c4325b7f8","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In these","page_number":148,"box":{"x":102,"y":642,"width":754,"height":11}},{"id":"b19b739f-b87f-43ff-b174-67881db38039","block_type":"box","text":"situations, a Fund may not maintain accounts in the name of the Customers and Service Organizations may per form","page_number":148,"box":{"x":69,"y":657,"width":830,"height":11}},{"id":"e9e21bc3-43d1-44b4-80d2-76d83077d7d5","block_type":"box","text":"some of the functions for these Customers’ accounts that the Transfer Agent would have per formed if the accounts","page_number":148,"box":{"x":69,"y":672,"width":823,"height":11}},{"id":"86fd7cd6-c7bb-435d-b48d-57638f45310c","block_type":"box","text":"had been in the Customers’ names on the Fund’s books. Such services include sub-accounting services, shareholder","page_number":148,"box":{"x":69,"y":687,"width":839,"height":11}},{"id":"6c6b6e6d-7072-4293-ada3-7898b5035468","block_type":"box","text":"servicing and transaction processing services and are sometimes referred to as “recordkeeping,” “sub-transfer","page_number":148,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"6650ca66-5cd4-4309-8db6-41882705ecfd","block_type":"box","text":"agency,” “sub-accounting,” “networking” and/or “administrative” services. Additional Payments may exceed amounts","page_number":148,"box":{"x":69,"y":718,"width":837,"height":11}},{"id":"a286cab6-387a-4b58-a66c-0bf04f53bad6","block_type":"box","text":"that would be earned on these assets by the Transfer Agent for the per formance of these or similar services. These","page_number":148,"box":{"x":68,"y":732,"width":828,"height":12}},{"id":"21e2c538-5ded-48be-96f4-654ae297a4b8","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing and transaction","page_number":148,"box":{"x":68,"y":748,"width":827,"height":11}},{"id":"d4066fb3-86a5-45a3-b484-753f3b41ea07","block_type":"box","text":"processing fees paid by a Fund, as applicable.","page_number":148,"box":{"x":70,"y":763,"width":328,"height":11}},{"id":"c8eb86d3-b6e2-4106-a396-fa0827d5294e","block_type":"box","text":"C. Data Provision and Technology Suppor t","page_number":148,"box":{"x":102,"y":786,"width":299,"height":11}},{"id":"b247fe55-a0a9-4d30-bcf5-ebd0033607ac","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of cer tain analytical or other","page_number":148,"box":{"x":102,"y":808,"width":805,"height":11}},{"id":"2c05afb0-0640-4dca-8085-2638a9f8b060","block_type":"box","text":"data services relating to the Funds, such as statistical information regarding sales of the Funds, or technology","page_number":148,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"56596ffa-5450-420e-bab1-6b7396f13c28","block_type":"box","text":"suppor t. Such Additional Payments are generally made as a fixed dollar amount, and not based on assets or sales.","page_number":148,"box":{"x":69,"y":838,"width":821,"height":12}},{"id":"79c317b1-7be4-4aa0-880a-7da32b24f7d2","block_type":"box","text":"D. Service Organizations Receiving Additional Payments","page_number":148,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"c6b94cd6-a890-4e4e-b4f6-ade81587f4de","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, cer tain of the Service","page_number":148,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"7eee69cc-771b-4c2e-bff9-21fc679a7e42","block_type":"box","text":"Organization’s affiliates, may be receiving one or more types of Additional Payments. This list may change over time,","page_number":148,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"57b92050-9bce-425b-9708-9ec77c4dbf25","block_type":"box","text":"II-110","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6420fdc6-b57a-4b1d-b649-350e1e3b79cf","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":148,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2721314b-ad61-4ab6-9407-04a721414e1a","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":"fa9e7839-755d-4d40-b337-d6c5d69ea3de","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":"18fb4e4c-f044-4c76-8440-711450fc8c90","block_type":"box","text":"payments and to obtain fur ther information regarding any such payments.","page_number":149,"box":{"x":70,"y":75,"width":523,"height":11}},{"id":"7ca6161f-921c-4400-9a16-a6f6bc47fdb3","block_type":"box","text":"&Par tners","page_number":149,"box":{"x":69,"y":106,"width":71,"height":9}},{"id":"95aefb41-7f21-49bd-9ec8-e984962d2cd1","block_type":"box","text":"AccuTech Systems Corporation","page_number":149,"box":{"x":68,"y":127,"width":219,"height":11}},{"id":"67d7a2cb-a5c0-4875-bf15-99559418d2d8","block_type":"box","text":"ADP Broker-Dealer, Inc.","page_number":149,"box":{"x":68,"y":147,"width":164,"height":10}},{"id":"81fe3507-6472-430d-bca5-f38acd4762f0","block_type":"box","text":"Advisor Credit Exchange, LLC","page_number":149,"box":{"x":68,"y":167,"width":207,"height":11}},{"id":"173b4429-9ac4-4faa-81a7-c577fe1a4239","block_type":"box","text":"Advisor Group, 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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":"1fda8b25-6fd4-4030-912a-5c29155ce7e9","block_type":"box","text":"time of purchase, depending in par t on the market value of the securities held by the Fund at such time. Except for","page_number":153,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"fb59e2d0-7220-4876-b9a1-3ae8340462a9","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":"0e1c8d81-1858-4833-ba42-554e8cad94b8","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":"00cf7248-3ae3-4c38-a1c7-85b851db954f","block_type":"box","text":"redemption.","page_number":153,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"2a0dcaa8-17d1-4db8-822c-ab1add53c239","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":"11d29104-95f2-47a9-88a3-9583e527abe8","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":"863ad449-3257-4e80-8e35-f57de22a1670","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":"a0c676df-6116-4090-85fa-e84d648f041a","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":153,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"a0b5cd53-6c43-4ceb-bc05-9b6cf5b1b266","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":"53eb6085-c6e7-4e95-9a6b-3dd1cb17bcff","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":"3f87a54a-df5a-4633-8813-e489957d588d","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":"2845e87e-0dcf-40e0-8051-74de6a17daab","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":"000de203-61e5-47da-a8f0-e80eec3edb37","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":"115c8beb-8c8f-40d9-9573-e47193fadf14","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":"69f7c358-19d9-4cd3-b24e-43d280cdf915","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":"aa5df4ea-8c91-4b4a-801b-dd15c0660309","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":"d3e990af-6eb3-48bd-873c-1cc4753d9c2f","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":"69b1be14-23cc-42fe-be99-e84ec1b5b5cb","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":"391d6d91-aef5-4b7a-9569-c9afddeb9572","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":"09a17ef1-d139-4048-8729-70ec6a96f2d6","block_type":"box","text":"so redeemed shall have no fur ther right with respect thereto other than to receive payment of the redemption price.","page_number":153,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"ce01d03f-5a6c-4b0f-8442-a4209b16bd61","block_type":"box","text":"Redemption","page_number":153,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"fe415582-1f0f-4843-bb0f-b787dc5a2f68","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":"45a84e76-996a-411d-a54e-83b0f0de49b8","block_type":"box","text":"Redeem by Telephone:","page_number":153,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"b3293387-9757-4fca-851f-6131afe32973","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":"46675f0a-ddaa-41fd-9f9a-2592ebc8eec1","block_type":"box","text":"telephone request if cer tain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":153,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"a15bdd1a-724b-4229-8d59-0329dace9d85","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":"a8ed5dc2-7c36-40cf-8f1c-6d2d0397e3c3","block_type":"box","text":"Cer tain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":153,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"a9ad750c-f81d-4379-b297-4bd7da79888d","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":"cac77f22-86e8-4467-b537-ae9a218be9bf","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":"edfb0491-0ccd-4eb5-b640-e8530398ed1b","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":"29806d63-e658-42ee-b1dc-69a54f1a171d","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":153,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"982e9e89-5e66-470d-a24b-af5ac32770e4","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":"7a0efd5a-1013-49c6-ba5c-395a0fbb6be8","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":"20312cb9-6e1b-4046-af0f-cc3a2a0fb550","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":"da990368-119d-4875-ab85-c9a652b80b4a","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":"43dce302-d7de-4f10-906a-63afcde91c9a","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":153,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"8a5260da-5641-4027-8b08-f92086be0e69","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":"62cdff73-1105-4e0c-ae5c-1a74af025a39","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":"9fb99e12-8260-4a21-86d6-2809bae6472a","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":"01166130-7613-4d00-bc10-4f37b9134a52","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":153,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"298e46f3-fa3a-4309-860c-c4120ac57f68","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":"22a008fc-a1b7-488b-ad49-06013070395f","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":"41c8c9a4-75c6-4eaf-8f9d-dab8fdeea44a","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":"8b2c8d80-2a9f-48cc-b32e-e5cc6b9218e4","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":"18c4690c-8c3c-41cc-94be-72a2f2f38a4b","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":"6f74e1a4-3ec0-41bf-a4af-68da54d19562","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":"b0334c2a-7cf0-42db-8594-11d7bc7b327a","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share cer tificates have been issued","page_number":153,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"45e98342-6c99-4ec7-bdc3-ae9bd116818f","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":"44753631-15f2-427b-8214-53497d3d2e37","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":"f98dced2-0937-453b-afab-dfb8a266aa6b","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":"5b1946cd-62cd-4bd0-a442-d4a4910273d8","block_type":"box","text":"II-115","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b0990b82-f42f-4dbd-8821-209ca3ff670a","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ea0506b3-67c1-46f5-87fe-6553fd2f201b","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":"be08e51a-fd73-49c3-bf02-bb569f82257d","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":"f2e10f95-06e9-4e9b-9201-057f7524ade4","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":"77b13f7d-6e76-4270-87ce-38f6037abcfa","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":"65204c8f-92ee-4ffd-8cac-23a92801ab7f","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":"3130df27-8e37-46bf-9228-a0b607ce0b55","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":"713fcb57-a309-4f40-8a46-38829cb8432e","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":"4d018e0c-2e11-4457-a8dd-2448fda4d349","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":"0d65d43a-a8e8-4cb0-aad7-49324e5c88ad","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":"84ad47e3-8eeb-4033-8f29-20ed7d34d1c2","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":"8abdf50d-8fff-405e-a12b-d61ee54a6e44","block_type":"box","text":"Redeem by VRU:","page_number":154,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"5ebf9508-f6e3-4a24-aa3d-cfabed3297aa","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":"09ba62e6-f2fd-4b08-8525-1da259b9f297","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":"fbeb2140-8e02-4881-a3ab-fcf75ad23cbb","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":"cf90de2f-1ea1-4c03-bba6-b58259e6721b","block_type":"box","text":"Redeem by Internet:","page_number":154,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"a5ccaafe-a608-4df8-b68a-c302eb51f939","block_type":"box","text":"Cer tain 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":"7a049811-c9fa-4f01-99aa-87f4b13bb85d","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":"f1ef79c0-bb42-4d1d-b144-c09bf73089d4","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":"a51d4a44-c6b5-4f64-a4dc-452f3dbe83cf","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to cer tain","page_number":154,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"95684cbc-7a95-400c-ad22-1d4b00752381","block_type":"box","text":"institutional investors.","page_number":154,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"948411b5-6bbf-4e06-8365-46c7e5b25de8","block_type":"box","text":"Redeem in Writing:","page_number":154,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"3124a894-7d77-430b-85db-6472f88c4893","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":"f254a1e4-861f-449a-ba14-6e48fc5b8f47","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":"61417b5e-1523-4de9-bac3-f79ecd053727","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":"4e030fe5-1890-49e6-a54b-4efbaa4cc1bd","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":154,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"784064ee-17e2-4314-96eb-e283070092ca","block_type":"box","text":"cer tificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":154,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"a9f011fe-8d3d-4b70-ac1e-36489d3d9b53","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":154,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"40990988-8d2d-442f-b13b-75f50b321b2f","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":"a34e9150-065c-44b5-a098-f69b7be3f446","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":"29d2369e-0562-4b45-bfab-3cdf9e376f3b","block_type":"box","text":"hold stock cer tificates, return the cer tificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":154,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"47a769e2-168d-4de6-b379-82da158266da","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":"8b5fbd01-2e19-4c75-ab2e-5fb2ec0ed5cc","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":"5ea0c5be-a730-4587-991d-8810c05e01c2","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":"fbe00473-cfe5-48f6-98ac-8088c00e529e","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":"1f61bb0d-e681-473a-8c48-7efec1eb07bf","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":"93744c90-0921-4bad-9b6d-26a0baf1fff0","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":"4246693a-e978-4530-8839-dd5fc9f81be7","block_type":"box","text":"(that is, cash, Federal funds or cer tified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":154,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"9a48336c-4ca8-4bc0-8efd-fd2586bf7f6a","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":"44d75748-e5bd-4779-8b9e-449ebc0b1e4f","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":"937caea4-f228-4129-a351-c13be0fcbc16","block_type":"box","text":"redeemed by the Fund.","page_number":154,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"19db8fca-b720-454d-9dbe-c5b25cffe072","block_type":"box","text":"Note on Low Balance Accounts.","page_number":154,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"17fa70f5-348c-4280-a50a-8f677a2c59f1","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":"1cd80300-bb5f-4837-bd1a-c0b4adf6f395","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":"9a5e8cbe-aea5-4976-9e0d-3e99a1112a34","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":"b12fdbce-291c-42f4-9fa5-bf5a6807f5de","block_type":"box","text":"for any reason, including market fluctuation.","page_number":154,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"3f3b4675-f663-4f08-9fcd-54b2cccd90d6","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":"270f1058-94e1-4082-b769-ebbd95fae18c","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":"4a2893fc-dfc4-4c8a-84c7-23d322d35e4d","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":"3d7b4552-7ad8-42cd-ab88-8a301465e159","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":"a18577df-97e0-4260-ad14-fee85188f5a3","block_type":"box","text":"cer tain 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":"6dfb9e38-5655-44bd-8cc8-3d4e6ccf5fac","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":"c32268dd-93b0-4be6-b626-abf6e6e8760b","block_type":"box","text":"Redemptions in Kind:","page_number":154,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"7b192d25-4d2c-4d64-830d-50c1aeef77cc","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":"a0e46121-4c63-4085-8e71-aca5365ca23f","block_type":"box","text":"whole or in par t by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":154,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"23018886-ff88-46fe-ac04-404923a84f02","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":"bbacf030-6590-4936-8b88-52dcbff19b22","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":"c285530c-1443-4a7c-bae7-44a296ba78df","block_type":"box","text":"normally be paid in cash but may be paid wholly or par tly by a distribution in kind of securities.","page_number":154,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"082cd5d4-042a-41ee-b9cc-117fad8d71f5","block_type":"box","text":"II-116","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a03a3711-1638-4f22-bea3-f4451e4a4002","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":154,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"76a2507f-f9d1-4e62-952b-76612303cb2b","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":"ae2003e0-f9e6-4306-a274-0f8d8b5b1d8c","block_type":"box","text":"rata representation of the Fund’s por tfolio or a non-pro-rata representation of the Fund’s por tfolio depending upon","page_number":155,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"c287baf8-695f-4d20-8379-f2a9bce3e38f","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":"852f4be3-046a-43ca-ac73-52e1b7bdc768","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":"a666c528-a3a2-49aa-9518-96ac63f4d0c8","block_type":"box","text":"considering cer tain factors, including, without limitation, the por tfolio management team’s model or optimal por tfolio,","page_number":155,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"5a343bd6-030e-44cb-a3c4-418bf0ad8213","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":"4271a712-cea0-44cf-84b0-2bd394458f3f","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":"17915912-989c-4c07-94b4-edeaf84f7c30","block_type":"box","text":"retain those securities that will per form the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":155,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"7c28d88c-d462-4dae-b303-3553a84dfa27","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of por tfolio holdings","page_number":155,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"7c3d56f7-2fd7-4399-b847-5bab2db2b7b7","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":"5d9fcb29-0d59-4af4-9ac7-0a533af7bc45","block_type":"box","text":"The Funds may effect redemptions in kind in an effor t to, among other considerations: (a) manage the por tfolio","page_number":155,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"ce288b03-9bb8-4307-9377-e515b16dd511","block_type":"box","text":"efficiently or for any other por tfolio management purpose, and (b) externalize cer tain transaction costs that would","page_number":155,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"f6c5277d-0e9b-48cc-a06c-c8975d3a7a08","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or por tfolio turnover. Redemptions in kind may","page_number":155,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"dbb27849-ac4b-4d79-80f8-4609084aba12","block_type":"box","text":"reduce the need for the Fund to maintain shor t-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":155,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"49bbfeb5-8a19-4312-9536-d967649a80c4","block_type":"box","text":"for the Fund to sell its investments at inoppor tune times, and lower Fund capital gain recognition, all of which may be","page_number":155,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"72dd342c-2a66-4a5b-bf0d-d4a4dbd07855","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":"a1582890-421a-492c-9324-7aa6cf2d27dc","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":"b2eeb91d-de33-47b8-9a5d-95674cce6d5b","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":"e3e858ef-bf7f-46f5-bf21-89063b8231dd","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":"a40b98c2-3233-4cd4-88dc-21b28d717f31","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s por tfolio, or a","page_number":155,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"3760af91-9247-4fd6-862d-7ffbd680a1c4","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":"7dd97742-c0b0-4169-b409-052a2a203a49","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":"a5602e9b-9018-45f0-978b-691f409bc42e","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":"a1e82960-d3ef-43eb-b0ca-a6ab22ec8665","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":"eb4c3310-951a-42a1-aca4-9fe981529b7e","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":"bb72e757-41bf-49bd-8297-571bfb314758","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":"3eeb8acb-33d8-4367-932b-31eb471fd997","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":"1da8095d-a52c-4a57-b266-1ae3322b7ae0","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":"ddd73211-009a-4626-9bb9-fb26d61a14fd","block_type":"box","text":"institutions that par ticipate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":155,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"023bb20d-a46e-4b7c-89e7-6f78cc718780","block_type":"box","text":"doing so. The Funds’ shor t-term trading policy shall not apply to the transactions described in this sub-section.","page_number":155,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"9535eea8-39ba-4bde-b568-bab2b776c9f0","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to conver t them to cash, you may pay taxes","page_number":155,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"80fc7cb3-dca1-4fd8-9e90-718d30dd0bff","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":"69bd8bdf-fae0-482e-80ee-041120745c09","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":"8167f27b-962f-4846-b74f-387e615f6ce9","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":"6dd97148-4182-4c0e-b015-4acaae29dcce","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":155,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"dbdf672e-899f-4824-81f7-f67d51ecd50e","block_type":"box","text":"Repurchase","page_number":155,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"2fb16eca-27f0-494a-8f8c-f2b92b8824d8","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":"99ad17e7-e93f-48f4-b6e4-462d8222984d","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":"5ef1e0f6-ec18-4ace-bf40-dd19bb4b5770","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":"9b30441a-c8d3-4a6b-b897-e00928446194","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":"39a8a7bb-a5a4-42b7-b7f3-4009acb68bec","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":"262f663b-a5a6-4c6a-a63c-726a4951dccc","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":"30c0c5e7-297c-4c3d-bc18-ebe21db2f4ad","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":"15e202cb-9db2-4fd7-813e-6691eadb0ff4","block_type":"box","text":"next business day.","page_number":155,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"e2ed52bb-8f9e-40ed-9696-125de9ab82b8","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":"178bcb84-0dd7-40af-a23e-234e5ed11c33","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":"1c987eda-f88f-40ce-b038-1af443bd6fd4","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":"c2919dc3-2aba-4505-afb8-dce6252fa07f","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":"b2549ecb-a8f1-439e-8e25-279d722832a1","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":"b6adf844-d143-4125-9505-9622b4fe56c9","block_type":"box","text":"redeem shares as set out above.","page_number":155,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"29707b83-60ec-4c62-98f1-8d58039ae07d","block_type":"box","text":"II-117","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"39aeb4d3-eb26-45b7-b3b8-ae0bc1bff02f","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":155,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"17c3a4e8-8299-481f-bb2a-543df0818b24","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":"2da973fa-55ee-4f27-9aea-8742538021d9","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":"33baefe7-cfc0-4d11-8a33-26997782815b","block_type":"box","text":"reinvest all or a por tion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":156,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"77d1659d-3bac-4f0f-9f04-c342a742159a","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":"e12d2f10-023f-467c-b0c6-43c4b825dd04","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":"28a675e2-0a63-444a-9447-3c634a7a72f3","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":"c2fd7ca2-1a10-4101-97df-5f8199b50dcc","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":"640f00c6-4781-4852-bc40-797ffc22b1cc","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":"24729b20-9655-4d56-ab91-78f20fc579cb","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":"a6dd986b-c726-4e02-931f-1860f385bd78","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":156,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"51f088d7-d949-4c68-be2d-89ecec62056a","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":156,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"f45dcd10-d319-4f63-873e-4add84b28fb9","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":"65471e82-0f57-45e4-bbb5-b3634633648d","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":"2af1640c-a3e3-4190-b786-4119a0731824","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":"5e386153-3363-43de-904a-f4f5051772f3","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":156,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"7f2f4f5e-f74f-48ae-ab0a-19ff0a95f5f6","block_type":"box","text":"Investment Account","page_number":156,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"fbf68482-757d-4ac6-bad1-43d922e5c093","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":"f3b5dd06-1b7f-4b34-806b-1dcf3de850a5","block_type":"box","text":"least quar terly, 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":"ce237643-8bb0-436b-bdc1-c135cd38a127","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":"710cf0af-e73b-440c-8f5b-a861c182d26e","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":"7ebc9e66-aaf5-4b08-a996-b340ecefc3b6","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":"2c3df4a4-acb4-44a4-a6b8-c48e88a869d9","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":"2dac5431-84c2-461e-92ed-b6aabd756d0f","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":"7acb12db-163b-4bc9-a7e7-396c479f0b03","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":"fb1fb399-b16f-46fa-837e-3140c0656b9e","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":"1a1ac3f3-b319-4f80-bdc9-c28caa75708e","block_type":"box","text":"automatically at the Transfer Agent.","page_number":156,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"5d279e53-52e3-4428-ad3b-e5a13ddcb58d","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":"7c1bcf6d-fceb-4def-adce-72b86ed59543","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":156,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"55870245-dbc8-4d29-a533-8fe9935317e0","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":"cf6b5144-1ad1-4d78-9641-5d99d701c6b6","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":"be4657dd-1a33-4344-9904-ad1ff4115b36","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":"0b7aaf8b-a330-4442-838a-063568cecd38","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":"39db4d1c-1e26-4cfc-86f1-578db6674a6e","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":"612e17be-bffa-48e3-97ce-dd5c047bba35","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":"dd689a89-e10b-48f2-a0fa-479df35867a9","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":"bc94281c-83a5-41d3-8c73-4b8da7ce843d","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":156,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"000e4517-341c-4a1d-ba28-d96d5ba15453","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":"0c8fff46-162a-4332-acd5-80c22710356a","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if cer tificates had been","page_number":156,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"773805fe-8274-4ce6-81c4-7b7fad3557df","block_type":"box","text":"issued.","page_number":156,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"4a3d03c8-f166-400a-bf4e-8e32a120db76","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":"887d14c3-3aad-4fa1-942f-5985b902af5b","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":"211d90be-ce81-4292-ab8f-f98666964925","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":"607f7a09-1402-4fdd-91d0-3d8c26d6bdff","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":"963c57b8-59ac-49a3-8299-ef46b0e094b2","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":"26d78d28-619d-40e9-bcfb-82b7aef27665","block_type":"box","text":"Exchange Privilege","page_number":156,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"2e52b48a-c5e6-4330-be1a-11009b2c2cff","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":"9c37abdb-261e-41ee-bc3d-8503c93534d3","block_type":"box","text":"each Fund have an exchange privilege with cer tain other Funds. However, Investor A1 Shares may only exchange out.","page_number":156,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"4c738d6f-7298-4ff6-9079-a65577e14dee","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":"1e7187c8-fb04-426b-9a34-b94811fa310e","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":"10b5c9d6-8c09-423b-aa71-bbb447018d9a","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":"a07d3e8f-d377-4c64-99b7-6853fc84b6f4","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":"ca403cc7-263f-466d-8067-a6f3e59e93b4","block_type":"box","text":"II-118","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3c8e225f-150e-4942-af45-37ebd87fdd90","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":156,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bd0b4526-1dbb-4341-b2da-9f245bd7256c","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":"b6bae620-dde9-45b9-bd8e-ef427f5137f5","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":"22238e20-1806-4158-8c3e-e083c6a980f1","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":"1203bf39-8504-4e7c-a6f2-c61ddf9bff7b","block_type":"box","text":"Institutional Shares","page_number":157,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"38acc368-a6b3-4243-9478-39b9524d9381","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":"c1ebb066-36ab-4b1f-b60b-a512e9880af3","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":"7479e6d2-ef9d-445a-91b3-a9c4f298f6fc","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":"c20b5cde-13a2-4d57-a99f-2f10b1bc8b5c","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":"18e5a432-7c6b-46a2-8103-ac77b39e391c","block_type":"box","text":"for Class G Shares of other Funds.","page_number":157,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"95209bec-4881-421c-9394-91a7fde99c70","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":"7aacb66e-e0eb-4015-a89f-1a2d66cb9ba3","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":"8e35d257-5385-47fb-8347-dfa2f503f77b","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":"08ce056e-9eeb-4530-9724-6eee24fcba00","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":"fe1b825a-c06c-418b-815e-892586b9338f","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":"a8fe2cb8-5293-4a4b-b51d-f2446c9d7b4d","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":"2b3d9419-a9d3-45fe-80a5-6b7d097397d1","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":"24431041-3f31-4c8c-bdce-229a605cf0fa","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":"4413f754-c9ab-4532-aeb5-452bb5018e75","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":157,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"06a27633-3ff6-4ef8-84b8-46365495386c","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding (“outstanding","page_number":157,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"8cad66b1-f811-4738-8ced-066d8c869875","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":"bd91dce6-0e06-4500-927a-d36343d8a0d9","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":"fee33c26-df4b-427a-90c8-1048c8f17a16","block_type":"box","text":"the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":157,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"b9123c90-8bec-47df-bba6-b525c8805354","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":"31a093df-f6f8-4883-8fef-1133d8810ae5","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":"999060c7-8e73-4d85-bb71-ef9064871afb","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":"f5901ce3-77f6-40f7-b3a6-c7b240fe2197","block_type":"box","text":"Exchanges of Service Shares.","page_number":157,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"9b3404b1-1818-48b5-b814-7dc060393307","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":"95a4e260-c05b-40e3-a17a-4374f9071da4","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":157,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"41886a39-244c-47a7-b6dd-8271b3e2cc0f","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":"1c3ba0a7-c9b3-4f8a-b2d9-13c145dc4916","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":"21d88b69-0424-421f-b0bb-9f908c8eab2e","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":"21b139c4-4168-40fa-bac5-7b6b37a04fd2","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":"5a720b86-1c89-4ce3-a079-2099134a6525","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":"de8971bb-907f-4f6f-9403-3f249aaa1be2","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":"8bca00ad-2817-4b16-9a32-99c7abdec9c9","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":"ba04a5a3-ffba-4777-ab1b-ccaaf52461f0","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":"792bd626-b2d3-4b0f-b876-882564be3995","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":"fe6423e4-ab38-40c6-adeb-a9eed361a54e","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":"5d4696ff-d55b-44d8-b02e-9970e3779d09","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":"1fb9637f-69dc-4d2a-93f6-c68d7d62ac88","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":"b552ee03-9462-47f1-9e43-88bc0161dec2","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":"dda500bd-6608-43dd-becb-54241d57cb4c","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":"bf3ba4fc-d083-46f2-a31b-1c5f2cd5f414","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":"ef1d73b4-742d-4b22-ae61-f6048df1c79f","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":"db71ea36-d11b-4a03-955f-474823847046","block_type":"box","text":"exchange.","page_number":157,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"0b20cccc-7bbf-43ad-a0f0-6955c0812c1e","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":"b069c422-1b2a-4adc-b07d-e3ca83398faf","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":157,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"fad7622f-3a82-42b4-a8af-2060fd9414e3","block_type":"box","text":"par ticipants 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":"85f69db3-c424-42f8-bdc3-f0c37c0dd9dd","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":"eb25f0f5-b665-4f37-a755-cf08e08869f4","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":157,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"58ea36cd-9055-49c6-b7e5-a5934b2f8c2a","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":157,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"d76eeca7-ca25-4363-bf87-5ffab41c7675","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":"6fc10b45-8fc0-43eb-b0e9-61e1b87fe604","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share cer tificates, you may","page_number":157,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"0f4af8e1-0eba-4acc-b4d6-3180a5c3915f","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":"971330a9-042d-4783-8c88-e00ba9e9f7d4","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":"65fc4175-03fd-4faa-bd9e-d825fe87afeb","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":"a1054716-2a54-4b7a-bef0-42dbe0c7e6eb","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":"24ecb617-0dc1-43eb-a890-22551490262f","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":"3767e992-fff0-4a3f-9bfe-b3f859ab56ce","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":"f5741592-e76f-4439-8e4d-c5a5db5d6d0c","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":"34160835-36e8-4ddb-a76f-0f916a67825f","block_type":"box","text":"II-119","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2f400d2d-905c-4f82-8131-3c6d835a4c6e","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":157,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c1f92ce1-c066-4a94-924a-b560244c94eb","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":"bcb22b58-5e85-485e-a7c9-6cb0297e9928","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":"35b509ca-9a50-4446-ac8e-67df1f02b4d1","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":"a86cfb72-2912-43d9-8ffb-1aaee0361423","block_type":"box","text":"Transfer Agent in writing.","page_number":158,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"51ceec71-fda3-4d80-8cfc-70b52afaef2c","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":158,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"ce24868b-31de-419f-b8d5-72f8365304f2","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":"b53e14dc-544d-4e9a-a45d-34a17f422c0c","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":"75fd7b81-8e70-4fc4-b777-0f9342938601","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to par ticipate in the","page_number":158,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"39ed3df2-52e5-4ba6-ba26-53f404058181","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":"efbdce8e-a8b0-4fec-94d2-afda65ac116f","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":"af66d0ca-19a2-40af-88ef-9e4a6a419348","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":"a234f632-37bc-4950-8355-6000f7b36cbc","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":"49c41836-568a-4f55-bdac-61eaf007a215","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":"a8ad6e51-6c3d-41f1-a2fe-7541e9b7eef9","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":"60aa76a1-73b5-4934-bf55-1b039885b526","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":158,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"a2b23bb8-fbaf-4b99-9391-fbe9592666e3","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":"f09c8f73-a4d8-4474-9262-7c67fb621175","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":"23e3b3f3-f1ef-4abe-9788-40cc3edfe9e5","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":"5a746727-c535-49cd-9b11-e9924c15c6cf","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":"c928716d-203d-4e14-840f-c019a1c0e5e6","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":"ec41e4a2-a24d-4dd6-8ace-11bdaf73feed","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":158,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"6457e1fe-3680-4a7f-80e0-5db782455a22","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":"787b92b0-d6ac-4377-9b84-1b34c1297e3a","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":"590b62fa-7062-468b-97a2-22f08542ac22","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":"bbd4fb53-1eba-4842-ba7a-98cd2c6eb6b7","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":"b56ced3a-f689-4624-94c6-18a97849c6e1","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":"705af6a7-0a92-47f9-aaca-8afb447d114e","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent per taining to such instructions are","page_number":158,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"68d9ea57-9db6-4c01-9905-0f377d12de01","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":"ab282d7f-a842-4802-9370-c30ef70e3372","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":"546f8e53-bde1-481d-bdb1-e6bd80bd9085","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":"e2fe57b3-d450-4477-93a9-d6c4d5e96ebe","block_type":"box","text":"Cer tain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":158,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"081b7f9f-e39c-483a-a275-ff4159764534","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":"6e5fdf5a-5865-470a-9c2d-fe10cb852405","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":"3c357f3d-8d74-41b6-a041-ec235b408e4d","block_type":"box","text":"may be distributed by the Distributor.","page_number":158,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"09699b92-b04a-4e6f-b573-b9dcddfab2b2","block_type":"box","text":"Participation in Fee-Based Programs","page_number":158,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"75c13c09-e036-4d42-bd81-30596c9c4aa6","block_type":"box","text":"If you par ticipate in cer tain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":158,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"c4566373-dc17-4c5b-ad27-07c537168fde","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":158,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"c5d405de-473c-4820-98e4-b07262d23ba5","block_type":"box","text":"programs in which BlackRock par ticipates, 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":"b106b5d1-d81b-4b12-80eb-b3f0ac4d83d3","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":158,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"124b57a3-658f-46b4-a3aa-756cdd9e7c4e","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":"d9614897-84a9-486b-9f5e-6a41eda60f9a","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":"a3efdec4-2321-4f2f-b4b2-9a2ad7c94f04","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":"beb47b76-f7eb-471d-9bc4-9707187b95cc","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":"65df071d-6e09-44a0-bead-175347fd859f","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":"550efc42-8431-4d51-ad81-b09bcbbed012","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":"2b55d8a7-95ee-4f3a-bebe-29b29a46f680","block_type":"box","text":"an account. In cer tain 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":"2d11649f-5ccf-4d3e-aa2b-3b9c69423bbf","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":"51688914-9010-42f6-8b55-f92eb2cf4d5a","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":"f22253a7-b2a7-4b49-b9e4-90804e6ee0b7","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":"8a35f1e3-b377-475e-9b19-88ec85bc1dd5","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":"aa20ee04-88c2-4f3a-b792-62eb885e9f2e","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":"8719791d-c526-4772-83af-56e3f7579e17","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":"31302c0f-7bac-4f08-84e7-5a99847656df","block_type":"box","text":"II-120","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5c0a9065-8007-4164-be96-4a81e2d9d2e1","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a433d31-1d3a-4cd5-98a7-a2eaa003cd04","block_type":"box","text":"Cer tain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":159,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"fe6665e9-fe57-45f8-8e76-01d273f04039","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":"2274ae9c-39af-4241-9c17-f891bc07d66a","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":"caa1c1ea-b9d7-4b16-b7f4-301239f0574e","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":"1b842a4b-832b-4302-ba3b-ac82501d4c68","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":"aa82becc-b24e-4146-bfd1-aa8e6c5a9996","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":"e8308001-105a-4ead-9afd-1765eb7b80e4","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":"4b986152-01cd-4127-9083-01e2bb618f5b","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":"191e07b8-07cb-48f0-a3ca-ce0910aca2c9","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":"938a5643-4c7c-4818-ad25-1bc0d2124758","block_type":"box","text":"information.","page_number":159,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"ee0d4c85-4601-47cd-b4dd-dd7fec527080","block_type":"box","text":"Retirement and Education Savings Plans","page_number":159,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"1da05237-7ab8-4210-9c13-c91ec0e7e9e9","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":"2981169c-68df-403c-aa9d-88d7461b79d3","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and cer tain of","page_number":159,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"673f5290-4347-4b03-8884-a86bbb160e50","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":"c885dd0f-4088-413f-9f7b-c1a20e5b23a1","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":"0d520441-24de-413e-b70a-a253e7fde323","block_type":"box","text":"your financial intermediary.","page_number":159,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"5ecb7414-572f-46bd-b9cc-c76471e55588","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":"d316eb1d-fb6d-4500-9921-e2b9f10d659a","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":"1e2b9d00-e131-4668-9cc3-5afb01db3a96","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":159,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"3599fccf-05ab-4afe-9f0a-b9ed376b2d68","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":"6cc5e4b9-20cf-4255-8a04-2a84258bbecd","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":159,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"18e67450-63e4-4f8d-9718-4ad3abd169c5","block_type":"box","text":"Automatic Investment Plans","page_number":159,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"0d9e1bbd-620b-4df5-8210-844d63c8e5fa","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":159,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"cb42c903-bce0-4fbe-9ed1-44e685573e30","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":"c93bdb98-4af0-4ffc-aa64-74e7e015343e","block_type":"box","text":"®","page_number":159,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"1103173b-4d39-4ca3-94e7-ef481c999ab1","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":159,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"852fe864-dd28-4ca9-aa14-ae45a6bfa8a5","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":"fc772735-2cb4-4ea9-b61d-d434e139729b","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through cer tain accounts, no minimum charge to","page_number":159,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"0e0f4909-fc9f-4ec9-a891-62c1d18b536e","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":"6b5f05d7-e1a5-4a0e-970d-4b350a3d15f6","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":159,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"c4e055a4-7af4-4038-86f1-59b74a212eb0","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":"704d7ed9-0c3a-4983-bbfa-4130950c3151","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":"47fc5906-5fc8-4c62-89c6-5dedace96964","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set for th in a","page_number":159,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"fdd0936e-71c2-4404-bf1f-80880357ab95","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":"1183bc71-a606-44ec-8913-8af862de4776","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":"e1ed4bd5-8692-4cc4-8a0d-faf168ffe623","block_type":"box","text":"Systematic Withdrawal Plans","page_number":159,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"211d7749-ce42-4947-a6cf-97044cb3cbac","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":"0aae73a1-d607-45e3-b924-6bfb45c1fa1b","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":"56cca03d-7a91-4878-8b7f-16c9df5a71eb","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":"972082a3-2e9a-4ee6-8ba3-21c49532c41c","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":"72f55ec2-213f-4930-9556-3e66424b0651","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":"c464508b-23c4-4368-b8d8-9c0460e4ee53","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":"a43aef7d-9416-49a2-92e0-5350d40c4ee4","block_type":"box","text":"www.blackrock.com.","page_number":159,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"fbea38e4-a1d1-40e8-b769-35f686b12881","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":"0019fe36-4ecf-4102-a369-d34e15e182f3","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":159,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"e50b74e9-339b-4c6d-85c1-c889e39328bb","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":"2b82a4cf-4538-49f2-8ebe-44fd461bd50c","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":"1759a529-4fe8-40f9-a7b9-a5cdf94f75ae","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":"1c8de9e3-0e8b-467d-adba-8974b3c9fbb5","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":"bc41cca2-bf90-4f2f-93e9-0b73cc5ba433","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":159,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"1eb9d154-1950-4ae9-a2d0-75a1fe82605e","block_type":"box","text":"II-121","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f431c8b1-eaff-4124-b899-2483daab8f53","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6b34469e-7433-42d9-be8b-e743b23133ee","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quar terly) and 6% (semi","page_number":160,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"91c4b659-7bb9-459a-861e-783e585a55b5","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":"dee5d536-0d2a-434e-b344-f19fafd5f8e5","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":"84f5a086-457b-4b08-b467-99e46ad43a83","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":160,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"664f1287-3a65-4712-8a48-d6c339471f85","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":"69966ac7-6ceb-4485-abc5-37d818a65899","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":"cf6139ee-9960-4dbc-a5a7-c48e5d04cbad","block_type":"box","text":"Dividend Allocation Plan","page_number":160,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"598ed4bb-5012-4cf4-954e-dfb723a20faf","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":"b7ab328b-eb91-4dbb-8ffa-a91b1131c509","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":"6ffa3070-35a2-430c-af8c-f71d98539930","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":"d27fab6b-8190-4a18-8846-3148ab689bfb","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":"192a8484-6db9-48bc-be3f-720600e91202","block_type":"box","text":"PRICING OF SHARES","page_number":160,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"6fcec647-0faa-4f4c-84ee-7a65719dd3fc","block_type":"box","text":"Determination of Net Asset Value","page_number":160,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"a326a365-9f2a-43c5-9cc1-088ea26ebc03","block_type":"box","text":"Valuation of Shares.","page_number":160,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"6fac7e10-5444-44aa-9e1a-f9945cfffeea","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":"ba4c041d-c4ff-4673-b5a7-87634265d6ea","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":"ec2a27de-fb70-4072-9d32-8279e07e6345","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":"c7f809d2-85cf-4ede-9300-bb7d46676e9f","block_type":"box","text":"Equity Investments.","page_number":160,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"8ae7b99f-6405-4785-9bc6-7a25f854dae8","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":"292740df-967e-43aa-b240-0a41912fdd54","block_type":"box","text":"e.g.","page_number":160,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"5e9d7f92-dbf1-4839-b7b3-9225a0594d3e","block_type":"box","text":", NYSE), on separate","page_number":160,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"758166c6-dfdb-4437-8b76-dd0235b7d463","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":"54880641-908c-4e77-b120-381ca973b588","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":"972ad44c-7186-4e97-b12d-44cde8c3e79a","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":"ff02208d-94cb-4543-8f85-deca0fb6f0c8","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under cer tain circumstances,","page_number":160,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"b9f91c3a-7e20-4453-a6a0-db91bb4253a8","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":"7496bc52-ea82-40b0-b7b7-c852b8f1d1d3","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":"bc658e53-e250-42cb-93c6-53c8545e082f","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":"77f24c37-2e4c-4137-a7a0-539271c09db4","block_type":"box","text":"last bid (long positions) or ask (shor t positions) price, if available, will be used as the value of such security. If a Fund","page_number":160,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"b1d46420-b035-4409-a312-3f323f874ac6","block_type":"box","text":"holds both long and shor t positions in the same security, the last bid price will be applied to securities held long and","page_number":160,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"bac5601f-f1d2-4713-a71f-a227988a7297","block_type":"box","text":"the last ask price will be applied to securities sold shor t. If no bid or ask price is available on a day on which a Fund","page_number":160,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"6e59f024-93ce-4df4-a47e-a76740b8f998","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":"9b2fa7d7-7b23-47c5-a278-e81d4481732c","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":"76dbfe77-a620-4a87-8c04-56f4186d16e7","block_type":"box","text":"defined below).","page_number":160,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"165648c1-55b5-431f-b301-afe22175c2b9","block_type":"box","text":"Fixed-Income Investments.","page_number":160,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"93e8dc42-65e0-42b3-b121-434635bd88be","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":"2df5042a-b674-419b-9e5c-2c62dd05fae1","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":160,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"e458ac3f-c1bf-4cec-9143-f7dda63ae03f","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":160,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"3863926c-65ca-4a7c-a7b6-acb28b701b2d","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":"04ceb5eb-bdc7-4d97-9b1b-77ffb2a2dba3","block_type":"box","text":"e.g.","page_number":160,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"b17a77ee-7143-4d79-b788-1127ac55b55b","block_type":"box","text":", recent representative bids and offers), credit","page_number":160,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"5d0aa94b-e926-46ea-9333-e4021f9a9164","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":"73e68118-fc2f-4b1b-9a17-7a6290cf5e5c","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":"f65f1ac1-99c9-430b-8ffd-76d2b50e044b","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":"0005de9f-3626-459e-b8d3-595a0041564e","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":"1052e1c2-6d5b-474a-99f6-1d22339d6dee","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in cer tain asset","page_number":160,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"86ca9462-f7e9-442c-a8e6-0b0199f9474c","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":"b2b842fa-1022-4c85-9765-3741c538fcb0","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amor tized cost method of valuation may be used with","page_number":160,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"796997ef-ec79-4661-9ead-33b6ea404f84","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":"d98745b3-ea33-4b27-a566-a8f520a530b0","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":160,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"5d762eb4-0c2d-4148-bfdd-c0514a7ca416","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":"a313e23d-1ade-41ab-9f85-4f5ea4c9f486","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":"e373ab12-f23a-4b08-8f15-da994814686d","block_type":"box","text":"attributes of the tranche.","page_number":160,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"fa077666-c95e-4f3f-a803-1bd44622ebe2","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":160,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"14e6e61e-7b3c-4004-a645-6fa2ab37a164","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":"94497088-5080-4a9f-90f6-6d59056924ea","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":"bb60561b-4fd1-4441-bb69-f78f81a468b5","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":"dfadbbe1-7842-4f30-a003-a52651aa1d92","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":"5d108b64-410a-4c77-b253-fe80418f34b5","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (shor t positions) price, if available, will be used as","page_number":160,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"b957e7c9-57e5-4d1c-b6e6-4f7ac220c583","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":"094583c0-f167-46b8-a92e-6c9b14a2de90","block_type":"box","text":"II-122","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f60d2dcd-4e88-4d8f-a09b-e630105f0b7e","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d86ccb46-8c7c-4e13-8f04-33638d70056e","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":"b75be4e7-0f27-4907-8662-974794413a38","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":"5510a196-5ce5-430a-b227-e0e7c235ed66","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":"52c5104c-2116-4474-8707-d4c0beadbe80","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":"3efb3cc9-785b-47a3-9d1e-bcecf90da5a2","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":"0a3db861-9636-434c-8dd8-87820207490b","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":"ec044fa7-9d00-4881-b1fb-156e79c71f6d","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":161,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"c0be22de-9362-4510-8e03-7c7116d6c2b5","block_type":"box","text":"Underlying Funds.","page_number":161,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"f321c7fa-c161-40dd-a988-d237d549f3d5","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":"d91c6ed2-8fa5-4c70-95b4-947f62dd823b","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":"b34a0ecc-bd28-44be-aa75-4b21dfa519b0","block_type":"box","text":"at their most recent closing price.","page_number":161,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"f7595e61-3624-474a-bafd-394dbabdb6e3","block_type":"box","text":"General Valuation Information.","page_number":161,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"69f59bf5-5e7e-4965-a408-4fb4494e7072","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":161,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"fe93446b-d07b-459c-8231-52131c821fb3","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":"8c0673ff-4341-4e6b-8dd3-23f99c624e09","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":"7033a26e-88e9-4b13-8d59-1fb9c47b72bd","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":"383497a7-cccb-4c8b-8502-c4f6f0afa54a","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":161,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"a4e833d7-2f3f-4e2e-aed0-04674b1e1423","block_type":"box","text":"the revision.","page_number":161,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"5819ba86-7d23-4292-8ffd-06cd97785eed","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":161,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"50509303-e33c-414c-a4bd-0da992853c28","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":"ec80d042-d7ef-4a38-b854-f6a9a2e9f74b","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":"1d6ab1e3-a4ca-40be-8850-dc61b528d9ed","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":"296669c2-646f-44b8-8c4a-99484d7b71a6","block_type":"box","text":"price the Fund could receive upon the sale of any par ticular por tfolio investment may differ from the Fund’s valuation","page_number":161,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"3181f7e2-6113-4d8a-8998-4068413281c0","block_type":"box","text":"of the investment, par ticularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":161,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"29482ddb-1ca2-40d7-bef2-16cab236f688","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":"a12efe92-ea8b-4bc6-9a03-8e043f4c06b0","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":"4449c51f-942e-406a-ae8c-524d2e587415","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":"6be63129-a8ce-4828-8e72-2392e1abee49","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":161,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"59048022-770f-42ac-8065-190f7d59df4f","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":"ceadfd37-689c-4140-8a23-2419948aad7d","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":"0cd2ba2c-0754-4d47-bd8f-896eddb2913a","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":"9b4ad782-ddab-4fa7-98dd-691c6edf54d9","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":"396a5483-6181-4cf1-bbc5-dc1752b23506","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":"459e24f8-559f-413d-853f-be11bc361ca7","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":"d1debeff-a2f6-473a-b8b3-5675f2d4556b","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":"4be1d339-b8be-4640-9697-d8d0306ea2fe","block_type":"box","text":"Cer tain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":161,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"fd4411d1-febf-400c-92bb-185d7c73544d","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":"11d54c66-e84d-4d31-9a13-909b3695320a","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":"0a705b2c-379d-4cd9-90ab-5dcff3650296","block_type":"box","text":"Fair Value.","page_number":161,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"05cff5e6-f5d9-49c2-abe1-b818c9886f25","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":"b0a49ece-5f0a-497e-a83d-56a92e68aaf0","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":"a3dceab2-90dc-483a-88f5-ce0d0df2d1ae","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":"69affa24-7991-4164-9702-ecd5a752e081","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":"11ca5d95-9e10-4bbd-8d89-6f7ad1c2eba2","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":"3c09985b-4133-42e9-9840-d4689e1f7e81","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":"14afec48-c5ee-4c2f-b4cc-79d82140aa23","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":"6927a5d2-21d6-432d-820f-c0679a2046f0","block_type":"box","text":"(","page_number":161,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"6ce3634b-e7a6-4fec-bb74-8255b8d5fdbe","block_type":"box","text":"e.g.","page_number":161,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"8cd4400f-7f28-4a65-b5d0-31d1a4b80458","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":"7dec5332-32e4-44bc-a702-6916c3d5e273","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":"1b4dd067-eb1b-4cb2-8b7a-3bfef612f9b6","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":"829b33a7-e9ec-4451-ad11-f2b1da3de386","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":"cbd69b13-d79f-422b-a233-9c1c65e29969","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":"54ad7731-0214-46df-a9b0-6bef5312ffda","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":"e0f9d4bb-91a6-49b5-88b3-0d18d1e6351f","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":"66c216c1-c4f0-41fb-b076-350d35994d66","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":"1b12c7f1-f3c7-4eb7-82db-91abe521c305","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":"2a763635-1e3a-477f-ac23-0114f66f0c0c","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":"b472e6e2-e422-4710-b733-138d351ab8a2","block_type":"box","text":"be treated as a Fair Value Asset. For cer tain foreign assets, a third-par ty vendor supplies evaluated, systematic fair","page_number":161,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"c0df3192-8114-4fe0-a1f3-80cbc5827e03","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":"a44b15de-47ca-4bed-8f78-f5f4a7582984","block_type":"box","text":"II-123","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"44068e9c-231e-44cc-9059-68babc55021a","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"77d0c0ff-e5f5-4dac-b505-5aebf0a2b0b8","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":"65b5a1c3-3594-49f8-b414-9cce0c8e1451","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":"6b0c3c08-a898-48fb-af19-f17d10b1736d","block_type":"box","text":"pricing time.","page_number":162,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"ec12eba1-d928-4da9-adca-b041645a5a4c","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":"8a03326b-5961-4803-bf3a-612b586136a7","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":"5611d81e-fcb5-44dd-aca4-a795f2742917","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":162,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"0279724e-368b-4321-a49a-1e311781e54e","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":"fd42ae67-c36f-4a9b-95c0-462bd847530e","block_type":"box","text":"assets and liabilities of the Funds.","page_number":162,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"ef05e72e-481f-4087-a2b0-516940d935b0","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":"a32ad722-7ce4-41d3-bf37-54001fd28a12","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":"472a5d95-69ea-4485-8773-d2047778b620","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":"b832915c-b921-47d3-b009-24bb62e4a284","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":"8ec00a99-4877-4614-8b79-b3983ab84602","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":"b56b1355-7a9f-44ee-95f4-7061df1ad592","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":162,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"b414ada1-1977-4b88-904f-fc729a188d1f","block_type":"box","text":"valuation models.","page_number":162,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"436b2986-38b2-4db6-bed7-7702c256aa4d","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":"a23fdd14-9984-45cd-865d-0ff910d397a1","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on cer tain factors, including","page_number":162,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"54f35ca3-989a-4f58-9668-8837ac4cb731","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":"312f4001-5bc5-4705-be8a-39eb0334fbe7","block_type":"box","text":"alternatively, using proprietary or third-par ty models that may rely upon one or more unobservable inputs. Prices of","page_number":162,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"b098ed6b-a68b-4b37-b037-2c253581c0c2","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":"9effa693-fab4-42ec-8e6d-a266f74fcf93","block_type":"box","text":"appropriate, an appraisal by a third-par ty experienced in the valuation of similar instruments, may also be used as a","page_number":162,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"98c8b33f-baed-47eb-b35f-98625455b832","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":"927c241a-274e-4dfa-9066-2b330d74fe09","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":"ffe79fee-1c03-4d89-8e10-27cecfaf39ca","block_type":"box","text":"liabilities could have been sold during the period in which the par ticular fair values were used in determining a Fund’s","page_number":162,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"b84c550c-2ed5-4c87-a38e-6ac4863c0f53","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":"2aa17ac4-25af-4d7e-ae89-b1b2b6b2a362","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":"3f958b9b-c47e-435e-b66d-4308f66583f6","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":"18e9928d-07be-45b6-8eea-51bceee7c243","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set for th in","page_number":162,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"aa8b9630-12f0-4e52-8640-460906bb862d","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":"818d84fa-7755-4530-be86-92283328f3b6","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":"298e2ae0-40bb-4310-aa06-8a7c14262712","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":"604b76ed-b5a2-4660-9cba-877e58349da6","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":"a702541f-b203-4739-ad24-fd17d6bb8793","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":"5f532f02-e15b-43c6-aa4a-87e4a9633558","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":"f7ce3016-5147-4698-af4a-f837324955b6","block_type":"box","text":"increase the cost and/or reduce the availability of third-par ty determinations of fair market value. This may in turn","page_number":162,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"634cadde-5e79-4a66-a952-81876fc9ca17","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":"8e396d7d-9454-40db-826e-ec2e96230d5c","block_type":"box","text":"par ty determination of fair market value.","page_number":162,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"cffd582d-d488-4863-b4cc-7decb201982e","block_type":"box","text":"Computation of Offering Price Per Share","page_number":162,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"2f6910c5-7ba4-43a3-90ed-8233f5617d1e","block_type":"box","text":"See “Computation of Offering Price Per Share” in Par t I of a Fund’s SAI for an illustration of the computation of","page_number":162,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"ac435c8c-3a44-4eea-b30a-b026583f53f6","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":"529cf084-e681-4818-9264-d1169b3e734e","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":162,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"406b5f8b-57ac-4ff0-b916-16aa5558feea","block_type":"box","text":"Transactions in Portfolio Securities","page_number":162,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"4700b08b-fbc8-4870-9d90-aba35198d9bf","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":"57dad13a-0b36-45cd-8c48-e5d453317046","block_type":"box","text":"a Fund’s por tfolio 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":"e08b4f22-f272-4277-ad40-dc280d2f79ee","block_type":"box","text":"par ticular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account cer tain factors","page_number":162,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"a11656d2-898d-46bc-be5f-ab468dc1b548","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":"f4914b24-43b0-46e5-8b31-5df0f8bc126e","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":"0d5b7790-8640-4bfc-a6c1-3715dc0d037a","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":162,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"0724f66e-b8b2-40e4-8f80-268eb5056f0c","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":162,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"e5a1c1f0-cae8-4512-85be-624cc4fa1294","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":"591b831c-c601-43d3-8244-359e4ff0fba7","block_type":"box","text":"II-124","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"60b49366-cd44-48aa-bec0-e93133b1fa60","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cc5136c7-ef71-492a-a388-cd5cb1e95d82","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":"8e5e8a72-f04e-4406-b662-751109aebdd4","block_type":"box","text":"reasonable in relation to the services provided.","page_number":163,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"884b747b-7cb0-4872-bb0a-11979202d0c6","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":"f1e310f0-107c-4548-be6e-6d63be2246ab","block_type":"box","text":"Master Por tfolio, it is expected that all transactions in por tfolio securities will be entered into by the Master Por tfolio.","page_number":163,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"63931b01-3d65-4336-bd52-aaf4dfcf553d","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":163,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"2aa1238a-d121-4c82-ad89-aa5229b73f3c","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":"65d2a990-aa3b-4953-9773-d83d514d0c12","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":"5f77a4b3-ffd9-4544-9d91-a6ac24d8c4f1","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":"c3e68615-e149-4517-aff5-2f6a55ac0280","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":163,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"f03c141e-76a2-4b54-b0a0-6decc0e7a5ca","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":"53d4620b-4bf8-4c3e-9482-2f9bb397090f","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":"2dc64228-f127-4555-97c3-1d033d64173e","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":"255afac8-eeb0-4cad-8e6c-bc5b0348a0f1","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":"0606b7e1-6174-43be-a4ba-aac98cbf1dcd","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":163,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"b87b63fe-dc39-4a56-a2b4-b6f5cb998a80","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":"49191d0f-1dcd-4043-b3fe-ab35a1e41485","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":"9e1245b1-3970-4183-a424-6b10e5873e05","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":"fbed7449-64a2-4a81-858e-05f3d84dc291","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":163,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"43377d4a-ecc5-45d9-bce1-d59380288c73","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":"33e05869-5026-4267-8dab-400715dde4c7","block_type":"box","text":"per formance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":163,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"1b246dc0-52ea-45d7-a948-254a256c35a6","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":163,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"afe8c3cb-058a-4632-bfa8-7e85d02b1869","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":163,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"fa7ad23b-c0ac-4df0-bb05-bbb50609fd5b","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":163,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"5043b860-cf18-4df7-89c2-63d21bc5e946","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":"79e49a96-8010-46aa-a660-ce2260dc112f","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":"ecfc69e8-5147-45b8-aeea-07d125a9ac54","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":163,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"a70b68d9-fc9b-4ff7-8f0c-ccae95a360be","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a por tion of","page_number":163,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"0a215e27-0b17-4ee8-94f6-7e08ec977f00","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":"b33f05c2-3ee8-4482-9922-aeea933b6887","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":"29041885-99bb-4777-aebf-1b2d763aaeee","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":"139ae39c-811a-44c3-b927-b3a240eef9e4","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Cer tain Funds","page_number":163,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"93be700a-c1cc-4845-811a-403cd66dc37f","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":"6ad62ca7-866c-4ed8-ba4f-bd4b79b2a7aa","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":"912c633f-9574-49bb-89c0-76f541351cca","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":"190d6404-25f0-4a5d-a1b9-e0530d74affb","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":"bc07b121-c493-4387-9e17-050c24e43c40","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":"28d7b461-7bca-41ae-bc04-d317616ca1d9","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":"cefbd0cd-6b80-4c34-9513-316114e6c3f8","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":"89a115d7-af52-4800-b00f-d2511578fae3","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-par ty and provided to BlackRock by the broker-dealer)","page_number":163,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"ff2529fc-11fa-4849-ad4d-228c6cc3f0da","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":"f1941321-67a6-4af7-be6d-27d3d32457d3","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":"af52e7d3-3d9f-41c7-a886-d21ced057584","block_type":"box","text":"por tfolio 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":"7f1a8026-d3ee-4f1c-a7ce-f947dc84dee7","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":"f11bd294-a708-4a5c-ba4a-7e2d98c776f2","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":"159bd3c6-2caa-4b85-a1cd-89388349f924","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":"696df148-10d8-45f3-a740-25f07deced68","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":"fc4e04f6-2cb1-4dbe-a276-1ab2d7918a10","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":163,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"6c81785c-8e23-4772-a2cc-527fb757669d","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":"f1403f66-cf44-4d39-8461-df0b9d4baad0","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":"84c976b8-fc31-402d-aec6-be20fcd4cb28","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":"122b66e2-fa2c-4f62-98b0-eb7be65208b7","block_type":"box","text":"par ticular 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":"06e0e5d0-04a2-4cc0-b4e1-2a800ab07d86","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":"8e8e4c81-f2f2-49cd-88b8-62a7769bb85a","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":"7d53b9ec-3c35-4b62-81e8-b98027c699a1","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":"5abe1c5b-ff6a-4c20-bb2a-7419cb9c37c7","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":"6b532579-c171-42b9-b7e4-abaf70d9a10b","block_type":"box","text":"II-125","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"82ad907c-6f82-4ffe-b9c7-07659af5b4b2","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6ca09c62-2278-4752-ab88-86f851b7978a","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":"22c359c6-63f5-4672-8f91-cdd85ffead21","block_type":"box","text":"managed por tfolios, 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":"816d3e7a-9b25-4611-97eb-5ea7b92b47d4","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":"90679a54-15be-4ec8-be7a-7088477066e7","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":"be8aec30-44f0-43b6-982d-8862b3adf5d2","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":"df68f4ab-794b-4673-9061-afa105b7adc5","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":"c94d4494-4eb9-4c8a-a58c-bd68a8bb43db","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":"a639c008-5d83-4ad9-b966-20ab7bd97046","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":"aff1ac40-9977-4488-a6dc-a94122b3bf93","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":"927b4bb9-b279-4efb-be75-3dd23fb05fbe","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":"7a41296a-72c6-45e6-91a8-a0db890cd1f3","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":"ea2d8b41-02f7-48a9-bb0b-b44f055cfa4d","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":"213c21d7-4f9b-4676-9bcd-68b701194cbc","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":"ce66412c-430f-4cf9-afe6-cab1c3627789","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":"f7182e87-8ecd-4d0b-a37a-854cd333bca7","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":"91a78b58-4fd3-4f04-be88-0891fc67e8d9","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":"8a2b90e7-a505-461e-822a-867ff37eae59","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Por tfolio with respect","page_number":164,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"95e7540a-5ace-4f67-a30f-06502e8301a2","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":"93b2ce46-e316-4eac-9f46-836e8134722e","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":164,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"09b05129-dd4a-4b1e-9667-6e16e4d3d3d0","block_type":"box","text":"is primarily responsible for the execution of the Master Por tfolio’s por tfolio transactions and the allocation of","page_number":164,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"b8f2ab8d-5961-4400-b2ea-7ce70e03ee35","block_type":"box","text":"brokerage.","page_number":164,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"de46081b-c5c0-47f6-98ed-d0b16946cba2","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":"182ebe34-90d3-4c2a-8547-059bf97724c9","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":"a14f8e07-1212-4536-9628-3a58e203dfee","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":164,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"15c05c21-6e46-45a4-b09f-c530a5430335","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":"c64e9f43-4b46-423e-bd43-235854ada750","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":"c48de97d-98cf-4b76-bae9-d8a26c7f67a5","block_type":"box","text":"Section 28(e).","page_number":164,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"4bd2be53-26fe-4c0d-aebb-2d2770039876","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":"99c70598-f67c-4c6a-8ed5-6a81cac6b8d3","block_type":"box","text":"brokers or dealers to execute por tfolio transactions for a Fund; however, whether or not a par ticular broker or dealer","page_number":164,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"a85c9f4b-d4a5-4c40-9615-55be79c0d341","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":"fad93a5f-af03-4cf1-a885-d53995e134cf","block_type":"box","text":"execute transactions for those mutual funds.","page_number":164,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"9e327f97-1db3-4ead-aa16-08c8c6040c17","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":"0b4f276f-9f93-4bf3-8ac3-313cf352bffe","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":"bab93ac3-19a8-4856-810e-ffb9e11271b7","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":164,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"6134691c-8e23-439c-a019-13b885e2c1f9","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":"41d40f27-4a2e-4df2-8482-191f822fd458","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":"1521d916-f790-4eec-be3c-8920bd646806","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":"bf5f059a-cc4b-4ad7-826e-d9b6cea99bd6","block_type":"box","text":"intends to manage its por tfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":164,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"6b80f898-d8b9-4190-97ec-97f674a162d3","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":"89adf9d2-1e14-4fd1-8c7f-6309091a2967","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":164,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"f0139f81-de44-4732-bb78-9bfc8c925636","block_type":"box","text":"See “Por tfolio 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":"4df94523-eb7a-40ac-b306-6636e9b6c5d7","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":"519b601b-291a-4481-9034-9a739f13d34a","block_type":"box","text":"Each Fund may invest in cer tain securities traded in the OTC market and intends to deal directly with the dealers","page_number":164,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"86e6ce44-5188-467b-8466-a190107b8150","block_type":"box","text":"who make a market in the par ticular securities, except in those circumstances in which better prices and execution","page_number":164,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"7fb0faa9-234f-4819-843c-f08db3073fd2","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":"756325bc-9f9c-4c1c-87f3-d15f44485d21","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":"675a21e2-ab7d-4856-8329-24fbe7a21ea8","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":"cda8a5a4-275f-4cde-85a5-74980e5e7a9a","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":"f03e9b42-02b5-4bee-b843-39584405d154","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":"b30166dc-cf30-4f0e-a925-6eac61d93957","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":"cf75b3c6-8206-4d36-a7b6-03f113af75db","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":"a2c3e742-32c9-48ad-b50c-cd4b8fefeef7","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":"bc63b48a-57d8-4a9a-9317-c56d2a30f6a3","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":"01782596-2ae5-4f6a-b913-18b980a4a721","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":"e6f3009d-f5e3-42d3-bfef-53bdface5ffa","block_type":"box","text":"II-126","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"931a78c6-ed11-4ba5-92a2-4882ecd5bd8e","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d4d59e30-c8aa-4d8f-9d4e-53e1eac45ccf","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":"451a25d2-717d-499e-b198-3936a68380e3","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":"b066933b-8573-4d21-958b-b95647ee835a","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":"f77a324d-77bd-44f2-bb4f-a435500d33b6","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":"3a521b29-94af-43d1-81ff-160c9e27ce47","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":"915322b2-3e6d-4036-b361-c5416e6213e5","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":"52196a14-bd30-4c6a-828e-96b703424289","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":"3c724639-5b1e-4f6c-8c95-63114e3cd673","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":"1828aa3d-1873-4601-b7b4-f52963ca5cfa","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":"cc062330-b864-4a1d-b867-8b6f80114130","block_type":"box","text":"with the rules of the Commission. As a result, the por tfolio turnover rates of a money market fund will be relatively","page_number":165,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"4d8e3e8c-5780-4fc6-bbda-b392ba5a42a4","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":"0d7663fe-8dee-4b12-aaba-13e9ad00d05d","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":"246fcb5b-38c3-4352-a4ff-ce181222875e","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":"5db4f471-a8b7-4217-b262-053b956c3647","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":"64ffd4a5-8c3c-48b4-918e-249e648a5962","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":"cf32534a-f215-4a0b-aa30-ec6a0b623d34","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an under taking from issuers of commercial paper or dealers","page_number":165,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"d600c77b-31ff-4333-a280-07c4ff0a445c","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":"d9ef8198-23c4-4c7b-986e-66b6b67ef2ac","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":"be5103c3-a712-4c50-8e8d-1e989047e956","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":"ea4f8555-edc8-4457-b8bd-ebe2cdd48e5c","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":"5d53227a-31f4-4095-8b6e-877644ad53bf","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":165,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"37d3605c-ca9e-474e-9968-46c3bdc283dc","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":"1efab70e-d0e2-4275-bfb9-53fe21a47e70","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":"72779f1e-11d8-4e88-860c-f43893064da4","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":"93e1e824-5f45-4493-89f0-0b3ca48ddc04","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":165,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"8b36c12c-8861-4b6e-a5e1-daab3a1d739b","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":"5771cd68-85d0-435a-b670-c3ded04e82bb","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":"df1e8ef7-ce56-4944-a319-6f71fa05bd16","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":"aa8f2c6f-6735-4df5-a056-1c9130ef13fa","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":"d747988b-fa0a-419c-8b72-2c1e720fc980","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":"ec328c62-b691-4c76-a8f7-ba6eaca60487","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":"919d72b2-db63-4c7d-a22a-0d9861175ff4","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":165,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"45fd8a1d-34f9-453f-8db4-b735d56ad2fa","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":"934fbdc7-23e6-426a-96bd-196ca00dcd93","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":"8daa15de-766a-48c8-ba69-d02573111cd7","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":165,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"810a9b2f-0de9-4624-9f99-4f1f80fb07a3","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":"36bb6653-3f58-49d2-8309-ce04109dcdd0","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":"c4463ba7-f943-4c6a-8e15-1f9dd38a9950","block_type":"box","text":"accounts and compliance constraints.","page_number":165,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"f35fb104-7a24-4db8-a1bd-b6dd20e42b1c","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":"939320eb-7ba1-4c4c-a9fb-7c4d3b9c135c","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":"e7323a61-b1fe-4f57-b4ad-64bdcfd910c2","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":"5770e36e-003e-4d8e-bf43-42c218c7809a","block_type":"box","text":"among client accounts over time, each por tfolio manager or a member of his or her respective investment team will","page_number":165,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"ca8f0cf0-dd2f-4750-931b-27b186e9775f","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a par ticular offering with respect to eligible client","page_number":165,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"754ce0f9-93b5-46b3-99be-313eeb8c3b59","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":"1e504f91-932a-4cfa-a59a-a555dcf29bec","block_type":"box","text":"eligible for par ticular client accounts that are managed by por tfolio teams who have indicated interest in the offering","page_number":165,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"8eee2609-09a1-44a7-bffa-de47aa79e5c1","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":"8825cb3d-a782-4a1f-b4ab-6dd3be342a99","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":"963ee21d-210f-478e-9eb9-112143406a4b","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":165,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"88443790-89d9-40e5-baec-b63dad6c73bb","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":"0f130a3e-242d-4758-a1de-2f014084975c","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":165,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"f0e8d61f-ac9b-4591-bca4-3c8ec6a29436","block_type":"box","text":"oppor tunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":165,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"06865d5d-f378-4780-a73b-0fb0e9fed377","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":"efbac179-1b1d-4ca8-bb22-50645955c0e9","block_type":"box","text":"clients may be used as well.","page_number":165,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"dc6008fa-388f-4df7-89f9-6022fd80a590","block_type":"box","text":"II-127","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"90416cc7-e542-4360-8c67-83c51bff2995","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d30ef97a-c7a8-4edd-a8b8-543adce3d7ba","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":"3b864d9d-1e0b-48f3-99bf-8a4f712aeebd","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":166,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"70947e50-033c-43eb-9593-5dfccc350e41","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":"e7634f87-942b-4b64-a50d-9ddad1b3c6f4","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":"6ed5a543-90fe-46d9-abc7-f43924fa2d11","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":"1d0cecd5-6ad4-438c-8f88-65ffa6aa609d","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":"b43dfaa2-580f-48e2-a341-afccf614880a","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":"7cea42f8-dcda-4382-aba9-8eb1658da28c","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":"6d06bf27-9af3-4481-b442-8ea1255e78fb","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":"0885cb82-307b-4161-b225-6f49e2be3faf","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":"5c29ef48-fef3-4d64-ba10-500c1dd77fb2","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":"5bbd4ae8-c531-46f2-84f0-2d3d5aff7633","block_type":"box","text":"In cer tain 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":"4ab3d6e5-29f8-4632-877f-026cc6b267e9","block_type":"box","text":"aggregate cer tain 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":"84c50cb2-8273-4cd6-92d1-33cf565009a6","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":166,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"c7ca6a39-bbf4-4278-ad62-3b38f6bc6444","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":"42a31fb9-5bd7-4adb-b5c3-f010b03b0cf8","block_type":"box","text":"oppor tunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":166,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"048c22e0-8757-419f-af24-f3a406ba485d","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":"dab1a0da-d5d9-4ae1-88ca-82d64c1e4a13","block_type":"box","text":"par ticular por tfolio 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":"56739840-6920-4257-9582-c1df2a62e2f8","block_type":"box","text":"accounts par ticipating in the order will receive the average price except in the case of cer tain international markets","page_number":166,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"8deec4b7-910d-40b8-bc5b-e6b268e1b7e1","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":"ddbeff9a-957e-437a-94bf-8ac849179437","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":"f793cc8e-73ef-4f97-a015-7a6efb518b84","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":"d75efcd6-929f-4de8-9011-f5141e842fb9","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":"2660e5dd-b97b-4eb1-9b68-4200d323ac4d","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":"bf6066f1-058b-44b8-979e-a5f54f00c213","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":"ea3c988e-4c72-4f01-a445-3655699ac58e","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":"091cadd7-43fd-4321-9718-d6f4c723eb25","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":"d7eb7068-bd32-414f-85f3-6f2cacc105ed","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":"ad5ea664-1362-4d98-8ac7-9cbd02e500bd","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":"1b45dd12-8a6d-4ee3-a344-2444ef32b2e7","block_type":"box","text":"Investment Company Act. In no instance will por tfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":166,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"8270e227-00f8-4433-b9aa-1a5db0933ef7","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":"c674ec47-b5de-4961-8464-a2d1df95ebdd","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":"7154c93e-b1ec-4e13-a5c0-c8900b2f11ab","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of por tfolio securities of a Fund and","page_number":166,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"78924a84-d029-4a8f-8efb-03cc30bfa263","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":"864ac62d-02c4-4ad6-ae12-90739916e21a","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":"cfd3be6f-f358-4202-979d-9f5c53bb58ed","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":"06c8954e-eeff-4634-8f2f-d27f5f7b7674","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to par ticipate in volume","page_number":166,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"1765889a-ab78-463d-96cc-429b6fb7f13e","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":"3d0b98b0-fc3c-407d-a5c1-96a1e0761a7a","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":"2f907381-4938-40e6-9853-9d87abbd776d","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":"eaf41ae7-30c9-455a-9954-8eb6adf71215","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":"4ea00039-36d8-40cc-aa1e-f9fe46aed823","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":"89521b83-cc88-46b9-b2b5-404057e69e10","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":"39265475-b868-4e0a-99e3-e833369d6c13","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":"41d2b4ac-741b-41bf-8ca1-7d115bc34aea","block_type":"box","text":"Portfolio Turnover","page_number":166,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"c5fcc0cd-4be5-49de-8885-73dbb025c8c2","block_type":"box","text":"The por tfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of por tfolio","page_number":166,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"a341aebe-cd52-4194-ac10-f502ba9762b1","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":"f783115e-078f-4e29-b34d-787288dd08d3","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the por tfolio during","page_number":166,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"445e0289-8c9c-4113-a297-c78a65025307","block_type":"box","text":"the year. A high rate of por tfolio turnover results in cer tain tax consequences, such as increased capital gain","page_number":166,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"fcc16695-c5c8-4fc6-9704-ef4835165e70","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":"55c80743-3f5d-4640-b42d-9bcf4c8e3442","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":"bba9e823-2585-44f3-8ddb-f564ed274ff6","block_type":"box","text":"II-128","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"72389695-e107-476f-a27e-2c12ef7cd269","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"55745b3d-15ac-4b3a-990d-a1b0f2bcfe95","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":167,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"1e79d6fe-f7e1-4e45-8291-e8882a3db117","block_type":"box","text":"Dividends","page_number":167,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"d8feb4d9-b99e-4de5-a046-41f6a15bf55b","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":"a8822860-a088-477e-8827-7c82a8670de5","block_type":"box","text":"investment income are paid as set for th in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":167,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"1b60e16b-105c-4578-8380-8262fe9ca89d","block_type":"box","text":"realized capital gains, if any, as set for th in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":167,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"3be2f22f-38f6-4f77-a592-7272e16d6d2e","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that cer tain","page_number":167,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"18ea1443-52b9-49b4-b26e-b19183e53042","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":"e2eac064-efcb-4ce6-b3ed-1e764d4e8560","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":167,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"11848eee-5933-46af-8ce2-6dd15406128e","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":"99760065-b98f-47d4-94c2-8f965d02c6cd","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":"bd6b9e6f-5c17-4052-a382-b588d1ada05a","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":"bf47b5a6-9271-49e0-af9f-bb007e5180f7","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":"7e4bc2d1-e92e-4445-a2cc-b99ce3b83d01","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":"3e367bbc-b87f-4ecc-bfda-f188ceadcf69","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":"463cc317-f45f-43a9-950f-ef211eb000a0","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":"fa247158-7f30-452c-b210-af792b8b0ff3","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":"b26fbce9-6261-43b3-a8f7-70d14af2a415","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":"d5653156-562c-438e-aa7f-0af7365d1b10","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":"e8c623fd-ccb1-41d3-b9a7-af93bcb62d06","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":"9146502a-4436-47a6-ac8e-0e1ab086df53","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":"35f60e1d-850d-4281-89f9-efb4a20a25db","block_type":"box","text":"Taxes","page_number":167,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"c5fb51da-5d17-4905-b9c2-14da8115c1b5","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":"cce17d8f-beae-422f-8f8d-9d00b48948e4","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":"018a0ae4-f1b7-4b41-8555-e75df9fa33d1","block_type":"box","text":"U.S. federal income tax on the par t of its investment company taxable income and net realized capital gains that it","page_number":167,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"4d3f4326-cf92-4421-8e06-ac38b79c5560","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":"4aac11ab-4fd4-4c5f-8277-44b76c61a2c1","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":"67394c12-9588-4e25-8a63-9e20cc99b259","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":167,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"3a2d5dbb-74cf-4cf1-b7a3-449a3de5a090","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":167,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"69003fcf-20f0-4903-a1a2-c689c37d13dc","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":"ed6d9480-4905-4d07-bed7-e4e0df5cb766","block_type":"box","text":"underlying assets of the Master Por tfolio in which it has invested for purposes of satisfying the asset diversification","page_number":167,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"2b646a5d-a1e2-4c9e-94f0-9c311569d170","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":"6eef0aa9-6b5a-4a02-af85-f023d9adc187","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":"46422731-7bae-47cb-9ce8-8b5f33d2176a","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of cer tain assets, or by","page_number":167,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"1ca76044-9b72-4d7e-96b9-3c66130addb7","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":"4da82b8f-b128-4153-a9b0-3155929b2367","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":"238f6371-e467-4914-9c32-07ac0b84c362","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":"6ea527a6-ade3-42c2-b5ad-61e3c9610067","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":"fc1efade-bec7-4844-8fb9-6d369812f1e8","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded par tnership. A Fund’s","page_number":167,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"19ac3330-904b-4453-a74c-cc1f35d613d1","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":167,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"2b8d4599-8b8f-45d8-acc1-9f3797200a52","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":"1f39ca1e-91b1-406e-a312-e95a0c6f3127","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":"73c4790b-3089-4b78-b09c-30635816a277","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":167,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"980cf915-69b0-40e3-a960-8d90df4056cb","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":"f09719e8-d5a8-4f53-85a8-e65d070d5a4b","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":"39c1cf2e-13fc-442b-aff7-8342e7614b0a","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":"a306bcf5-9c92-488a-a464-82bed8d4ebc4","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":"03cda0fc-a366-4c23-a76e-02db0206690c","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":"641d1b2f-f1eb-4d60-b8ce-61ee38accff5","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":"1028cd1f-e798-4a35-9fd8-f86efc0c1791","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":"bdc5d8f5-9164-47de-b83f-dd83a4384299","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":"5f2eedcb-cc39-423d-91ed-772ab7bbbd49","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":167,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"6bc0b681-7532-44ef-a01c-9cb3aebe34e4","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":"de778d38-3956-46f2-b1ed-a4dc49fa872e","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":"dcbcbf82-c5d7-455b-9999-e7ad5c17abcc","block_type":"box","text":"II-129","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ac34e526-e0ed-4a5c-8b1b-6677de919d30","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7a15a630-51ad-4753-a2d0-773db6c58ce1","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":"48cb0e3d-efe1-45a3-b284-7391e3923822","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":"71a20ce8-0144-43f3-8772-7dab61ba6bae","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":"89224c41-f500-45e3-bc17-d0a622620978","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":168,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"829aee57-129a-4066-b12b-08be29ba704e","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":"77e7c00e-12fd-4390-9232-00e0aa9d02bc","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":"566fc93b-9637-4466-a0af-4b316645180a","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":"cfd64694-3111-4138-96e8-d312d4336087","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":"3a8c8bed-1244-4649-8a5d-674ea57909c3","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":"cebc2d40-ab69-4eb1-a4bc-346fce96fd75","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":"936ae90f-ba65-4ba0-a9f7-a098b0c5ca51","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":"189c2794-2e61-4d38-8037-61d141fad873","block_type":"box","text":"limitation.","page_number":168,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"c28f4f31-879c-43ab-b704-2c3d2fad882c","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net shor t-term capital gain over net long","page_number":168,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"95fd72a3-9441-455e-8983-9edc071b2534","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":"6905aab1-6350-4e35-bb10-13530cca089a","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net shor t-term capital loss (including","page_number":168,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"ce9e95bd-aaa0-4934-b2ff-f728090c33f1","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":168,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"85e2e0ca-b275-4092-8b18-e67a34cc2563","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":"ee21d409-46f4-4a1e-a6b6-d19fe8209855","block_type":"box","text":"Distributions paid by a Fund that are repor ted as exempt-interest dividends will not be subject to regular U.S. federal","page_number":168,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"f4873ee1-6fc2-4ee9-963d-e5f89721d7e6","block_type":"box","text":"income tax. Cer tain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":168,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"4abbf740-e746-4a9f-9819-356e160b87d4","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":168,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"6614a2ba-da1f-4002-bab1-18531b7cd8d7","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":"997bb405-af93-4721-9c2e-247bcb720609","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":"81121428-7468-4463-b184-111f62062ee9","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":"8d9f1946-7edb-4fce-b1f7-19c8bffb9143","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of cer tain","page_number":168,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"f59ffae3-96e6-4e0c-a64c-3d8a6ac79a29","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":"c7670635-3f2f-42fc-b978-a8b1ba805d90","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":"d2d208b5-1ee9-4738-9cf0-b35e92a61548","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":"dec642fc-2a5b-4045-8bb2-e0033b3386dd","block_type":"box","text":"are derived from income on debt securities, cer tain types of preferred stock treated as debt for U.S. federal income","page_number":168,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"00ddbd0c-fb5e-428c-bd17-7843d9b5094a","block_type":"box","text":"tax purposes and shor t-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":"54e2cdea-e646-4312-8076-a39802bfe4ef","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":"46a5c599-c36d-4e53-88fa-6973a1ff2e72","block_type":"box","text":"constitute “qualified dividend income.”","page_number":168,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"ff701fed-5e6f-4f1a-bf6f-95ddda5b207a","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":"31d0cfd9-4c83-442f-80d9-dc7bacb0bfe4","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":168,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"e9dcf291-aaa8-405d-842d-fdaceadedc97","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net shor t-term capital losses) is not","page_number":168,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"592d00a4-3ef3-49a7-8a5f-ba1286e7b614","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":"33fedcb9-fedd-4ca7-aa48-bbb0aa74121f","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":"e6d1f911-a15c-4d3e-9521-4d0a01c11383","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":"989d633f-49d1-4a15-84c6-4dbb074707f8","block_type":"box","text":"income, as long-term capital gain, their propor tionate shares of such undistributed net capital gain, will be deemed to","page_number":168,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"249e3ac0-1dc3-4ee7-b84e-d8fd68b455aa","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":"ea7a3496-4ab0-4ae4-8226-062a94945ac6","block_type":"box","text":"exceeds that liability) their propor tionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":168,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"bbe86c58-534d-498c-a17d-bbe2a599d6d6","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":"90e52619-a8f1-46a3-a653-b3ea2ab3a31d","block_type":"box","text":"against their taxes.","page_number":168,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"35d1f3ca-0ded-4df7-91d0-3e72b547c684","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":"2c811e57-bec4-4204-8503-5825823a6026","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":"b4b47c37-420e-4f51-af38-56893bf06d8b","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":"4a1d6858-f8fc-425c-9d26-00962aac96b6","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":"2cd7f84c-91a5-450c-a392-3fc7cd71559e","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":"55e9200d-b956-466c-ae55-784cce0088f3","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":"79622adb-e8f2-4700-9e1a-399742b0d4da","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":"ae15865d-7856-4297-b078-533c6eef4c25","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":"9a05947a-c91d-4334-a8fb-813d5656ab79","block_type":"box","text":"dividends received by the shareholder.","page_number":168,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"e249a204-3d82-4f21-8758-948d55ae3a0c","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":"f9974205-f83e-48b7-b4e2-073948ab6239","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":"0aaab0e3-9cd7-4664-be66-33a7cec32486","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":"f12f60ea-a0f2-41d6-b6b8-db680b0a6e02","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":"72bbc9ee-7424-4de8-9ed6-386e8e6885fd","block_type":"box","text":"II-130","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3c9d4c43-db83-4925-a69f-340ab999c76c","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a8aa77dd-a7f9-4955-970c-910e23d026b3","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":"2af46ff1-8164-48a9-93a1-d613f012ac6b","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":"aee90835-22c1-4ce2-bbcc-857b97ba8b15","block_type":"box","text":"calendar taxable year, if the Fund repor ts more capital gain dividends than it earns in such taxable year, then the","page_number":169,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"53bb7d3f-28f6-4656-ab3b-0db1386101a1","block_type":"box","text":"Fund will reduce the amounts repor ted as capital gains. Where possible, such reduction will first be allocated to","page_number":169,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"b4a9ee12-243f-4efa-adf7-802283e65a10","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":"297b3415-7978-438a-9e84-fea2150c9fcb","block_type":"box","text":"taxable year, cer tain net capital losses arising after October 31 of the current taxable year, and cer tain net ordinary","page_number":169,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"5e79bdb7-488f-4b61-ab1c-52b54dd30a93","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":"a68719f3-69c0-43e3-8032-1b036f35e379","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":"3f775b92-6f93-4e7c-9928-951e28eff630","block_type":"box","text":"taxable year.","page_number":169,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"bda4613a-372d-4fde-aaaa-cecf47dae8db","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":"98cf53f6-d977-4fd2-a681-f0e8f5e77517","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":"4a2faa4c-533f-4359-8bf0-8fe262f7c3bf","block_type":"box","text":"basis in the conver ted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":169,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"0d1511f7-032f-4535-a1ef-80543aeedeac","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":169,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"6e8e332c-ec40-403e-b2f9-9b75eef1d8ca","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":"e7b840f8-fce5-49b6-a1c0-85803537367d","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":"d8a2393c-5638-41a3-9a12-73f951f1c451","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":"06e59acb-33a0-4b3b-809f-2ad2fb8c5b24","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":"9fbdc87d-2eab-4929-ae5a-5222d664fa79","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":"5db0d1d6-542a-43ca-b0fe-c6c22a447093","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":"c4f65a15-e4ef-45c7-9365-6aa6818a36d9","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":"872b2f14-bfff-4773-9aca-c78b8e280f3d","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":"037bb20b-0c4d-45b6-92a5-86febb0bdfa2","block_type":"box","text":"generally be treated as shor t-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":169,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"23561707-3d05-4f73-a19e-bc8d100ae3e8","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than shor t-term capital loss, to the extent of any","page_number":169,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"9a205ddf-12ab-44fc-b4bd-a01142693875","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":"05caabf4-ebd4-4166-b0f3-9f11fb31e82a","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":"8aadb1ce-a25f-47b2-ae45-c162c6172daa","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":"127a5121-541d-42df-9601-c7d72fb6146c","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":"626c26d1-1e83-4114-8aca-67140d24bd15","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":"bc51808d-27e5-4b1a-848e-1e947c8f3ece","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":"a00cbd22-b410-44a9-a304-493850cab42b","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":"f1cb97b9-62f8-4261-9558-9a07f0006b22","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":"a5dd2eb8-f7a8-479b-a95c-f74474fe2fbd","block_type":"box","text":"A Fund is also generally required by law to repor t to each shareholder and to the IRS cost basis information for","page_number":169,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"261df00b-a980-4d88-87f0-349228ad845e","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":"3ea77506-43d8-4d8d-96f0-90f3d01bc327","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":"7739b99a-9d78-45f6-9918-215e71e2e102","block_type":"box","text":"long-term or shor t-term. The adjusted cost basis of shares will be based on the default cost basis repor ting method","page_number":169,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"6574d304-8f0d-4411-a56e-f7db2c814dde","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":"ed1bf001-0ad0-416e-aec3-2ecb49365133","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":"e155c805-5d84-4aa2-a57f-1b8b64e907d0","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":"fe8fe270-6bfd-4c82-947a-9db7853947d7","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis repor ting","page_number":169,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"eddea32f-0f2e-4ec6-9338-21bfa4283db9","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":"9401f809-44e1-41ca-9f24-56d6c781fbb9","block_type":"box","text":"apply, but the Fund will continue to repor t to the IRS the gross proceeds received by a shareholder from the sale or","page_number":169,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"60e59308-4544-4d3b-8c06-636119b14366","block_type":"box","text":"redemption of such shares.","page_number":169,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"c959b85e-8c37-4ef8-a305-36e9565c7746","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute por tfolio securities in kind for the","page_number":169,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"d69d7eb5-61a9-40f8-8cad-04a914726b9e","block_type":"box","text":"purposes of por tfolio 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":"719f02e1-5132-4b81-b504-f6116c533c96","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the por tfolio securities it distributes to the redeeming","page_number":169,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"2546b86e-91db-43f4-9103-78c178901bbe","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":"2c911222-4f6b-4359-873e-59c0f53eb054","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":"88182b17-9f11-4819-b0d6-e0455c0909d7","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":"7709ba1d-df26-4ea8-86ae-79b62a80f85e","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":"79e53f5c-c18f-476b-8a5f-1f728be843f0","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":169,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"13ad0bf9-a1bf-4de9-8218-801310e431ae","block_type":"box","text":"Cer tain 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":"a4e6cdfb-79d4-4090-b57b-99c911e2e8a7","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":"9eba7479-2a97-4656-9a48-f871fad4cfee","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":"9ada8871-61f3-489f-9855-851ac4f879fc","block_type":"box","text":"realizes from its investments. As a result, a larger por tion of the Fund’s distributions may be treated as ordinary","page_number":169,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"f75ff454-1d0e-430d-b6d7-8927ecfa8048","block_type":"box","text":"II-131","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f3bb61a4-a7b7-43bd-b78e-ea9242563a8e","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e16b470c-7387-4209-b61a-8fb9df9b14f5","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":"addf9346-3445-40b6-bf39-a8c416c91a45","block_type":"box","text":"(and, for purposes of the 4% excise tax, cer tain other dates as prescribed under the Code) are generally “marked-to","page_number":170,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"58e52e34-a9d5-45d6-a7cc-d4a3bf88e348","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":"5feb03fc-e8e3-462d-ad83-cd053b3ab9cb","block_type":"box","text":"considered 60% long-term and 40% shor t-term capital gain or loss), which may increase the amount that must be","page_number":170,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"024f0b35-090b-4301-a3bf-179205988cd0","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":170,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"ba5a8185-c30d-4ffb-9d58-31ff51f23470","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":"84ea03c1-703e-40a9-9e30-3be48199da04","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":"3e958018-2540-4f8f-b395-5a36aff30c5a","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":"29c8831f-e2f8-49ca-afa6-1a2fd4455a81","block_type":"box","text":"Cer tain 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":"1ed97300-63b9-422f-9e34-6d60e804c6a6","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":"6da19aaa-d660-42da-9f28-998d0a80c970","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":"35e590d5-8475-4d4a-adee-9195ba23f1e1","block_type":"box","text":"on a section 1256 contract is treated as shor t-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":170,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"efcc6c7c-87c9-422c-a2cc-3ee4846e0899","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":"70c3abd9-e163-41af-b7aa-4fae4d6c1e28","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":"aa36d753-3a52-4291-8527-35bbf5446b91","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":"6848c656-1ed6-4ec6-858d-89728c6c4e54","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":"ea74e87f-48fe-4c85-a37b-f93cf96a3014","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":"c72c4f79-c763-4367-930a-3cd4899d71df","block_type":"box","text":"Cer tain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":170,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"8853cee0-637a-4c62-9c56-5b321ab693c8","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":"4e36590b-740d-4b6c-a907-814d983e2aef","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a por tion of the excess of the stated redemption","page_number":170,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"969c36c3-fba9-4238-aa96-1ee0f97a7fb8","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":"ccdc3b17-7ef5-49f0-aaff-86d966c108a0","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":"181c6ebc-0213-46d4-a523-bba82833db7b","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":"21398b98-a963-433d-83af-127dd91a50bc","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":"57e0d778-1940-4c9b-a492-71e91c0da97b","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":170,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"f45ef07c-b5ac-473a-b03f-57f7cbe95267","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":"8456eaa3-a47f-4083-8abe-284a4f786b68","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":"f7185eea-8d0c-450e-b6c2-f822eee861b8","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":170,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"8d295e8a-b9b5-41de-92c2-317d09ac911b","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":"aaeb7e96-14be-44b7-97f5-e9baa179d861","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":"fa9d5ffc-3806-42f9-9203-d38b7a149bc0","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":"3f4dcc64-9c1f-4bcd-af38-b541bd593d75","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":"9aa78dd2-76ce-49ea-ba23-6773d7bfc6bd","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":"dd91ded8-9173-47e0-82e7-d7b9b78954ad","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":"bbcb0c84-4ce2-4917-a9eb-8c7c60c8c08b","block_type":"box","text":"in subsequent taxable years.","page_number":170,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"f23ec7dc-65da-46a9-825f-ead68c19e425","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":"26ec1c98-dc57-4b1c-b054-264f1dd7773d","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":"c7f9d209-1474-4092-a806-dcb8629fd91f","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":"cfc9faa7-960f-48eb-a4b8-5ef02f9f094e","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":"58838f22-b25c-49a9-9070-83d71f19fe36","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly repor ted as capital gain dividends, generally will","page_number":170,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"97bc0e3b-8b44-44a1-b1e3-ca9c58a34695","block_type":"box","text":"not be subject to a 30% withholding tax, unless cer tain exceptions apply. Dividends derived by a regulated investment","page_number":170,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"921c85cb-8288-4d9c-9fc4-95fb722f0280","block_type":"box","text":"company from shor t-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":"7c3529e4-2f4a-4d9a-adb8-b74fe60c1980","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":"cff0ebc8-42c4-4ac6-9093-814bfb2487bb","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":170,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"39024939-85c4-414e-af2e-ee410545855f","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to repor t such dividends as interest","page_number":170,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"2532935c-9b27-4577-b5e1-6269303dbca2","block_type":"box","text":"related dividends or shor t-term capital gain dividends. However, depending on its circumstances, a Fund may repor t","page_number":170,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"f8a7c75b-bd06-471a-809b-15544d752e4a","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as shor t-term capital gain dividends, and/","page_number":170,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"e6d63195-bcb4-494e-a21f-cd4635975229","block_type":"box","text":"or treat such dividends, in whole or in par t, as ineligible for this exemption from withholding. In order to qualify for","page_number":170,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"fca497b7-0ba8-47a5-a9e7-68103e6e7a2f","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":170,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"57157cb0-85b7-4790-be1b-c22bbfcb951d","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":"bf810515-15d3-40a2-86d8-bc59aec5ebe3","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund repor ts the","page_number":170,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"221a3e70-826a-45b9-be6c-384116a22b8b","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":170,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"7cfed11f-0af1-4d04-8af0-a06659235185","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":"9f5f927e-7e30-4f87-a774-c1ccee3aa25a","block_type":"box","text":"por tion, if any, of a Fund’s distributions will be repor ted as interest-related dividends or shor t-term capital gain","page_number":170,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"4c665837-5e91-4d52-b613-b6f929f0a638","block_type":"box","text":"dividends under these rules.","page_number":170,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"42e7db43-c9ed-4c08-850a-e92e3399c910","block_type":"box","text":"II-132","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"31883c49-bf0b-4299-9516-832222b3889c","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0b8208f6-687e-4f4e-be65-c9930b9a8a5a","block_type":"box","text":"Distributions to cer tain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":171,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"3728ea57-ad8e-4eed-a03f-f3e960091ea0","block_type":"box","text":"proper ty interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":171,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"4f5a0791-0be6-47f5-8a1e-2029921529de","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":"169338e2-1cf6-424c-97dd-aaca778948f1","block_type":"box","text":"real proper ty interests (including shares in cer tain “U.S. real proper ty holding corporations” such as cer tain REITs,","page_number":171,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"7fe8132b-e47c-48d7-ab64-835b7444c952","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":"e8ce1c3e-e207-4e8b-879e-2facd2bd79f2","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":"30836c30-fb6c-487d-afa2-4f2d33723262","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":"809eeaec-d9fe-4ffb-9e20-66a5760a5fd3","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":"81aed5c4-5864-482d-8dfa-2aad60f07e9b","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":"a4ed54d6-6644-40c9-b80e-c6e3e611c6f9","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":"bf85c374-2ac3-4577-b813-967c8d740a9c","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":"aa2bf132-8f6d-41e2-b7e7-24163d647c4f","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":"f9bcd1a5-6eed-4b39-aee0-587d43ae03cc","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":"d247b361-057b-43d8-8c7a-b8e3624b4739","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":"b6f4ead3-bed1-4e8a-bd1a-4e1bf67f579b","block_type":"box","text":"sales or redemptions of shares held by cer tain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":171,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"620dd0a8-3141-4b89-94de-8253fa86035d","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":"07f898f6-d953-44ef-b0bb-1009dcb9720a","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":"87c8c2e8-2f7f-44ea-a0ee-916b9b5e9ad0","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":"af558c5f-1f00-46f4-b697-519c2e791a0d","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":"ffe8b490-882c-4c27-80b1-39aef8011f1d","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":"ef0b3253-641d-4475-9978-8fec1e6083c3","block_type":"box","text":"distributions made in the form of U.S. real proper ty interests (including shares in cer tain “U.S. real proper ty holding","page_number":171,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"6cde466c-87a5-4838-a362-2a99a94caa80","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":"9377bb4b-38ea-4ffd-ac93-2db6ab7ac03e","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":"d689d000-3030-49d4-a5c7-e73c18b8697d","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a por tion of any","page_number":171,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"0e21d214-4edb-4427-a93e-2c0265f6c3e2","block_type":"box","text":"unrecognized gain in the U.S. real proper ty interests equal to the product of (i) the excess of fair market value of","page_number":171,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"4a5daf1a-c30f-4c62-af45-489d00b6d79d","block_type":"box","text":"such U.S. real proper ty interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":171,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"137b6215-e15e-4120-8fcd-d33e158e6217","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":"88462540-4bb0-4f57-be01-71cb3740fd99","block_type":"box","text":"A foreign shareholder may also be subject to cer tain “wash sale” rules to prevent the avoidance of the tax filing","page_number":171,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"f0b4e1f3-6e2b-4bea-9bdc-de7ef5a79cab","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":"1becd49e-004d-4834-aa25-f353ec874e02","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":"61860fd8-b98f-4f41-afeb-127e32c61272","block_type":"box","text":"concerning the par ticular tax consequences to them of an investment in a Fund.","page_number":171,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"cc96fae5-2c59-4c0e-bd50-40a39aee7997","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":"a570c4fe-3887-4f3c-8a0e-45f526161708","block_type":"box","text":"items paid to (i) cer tain foreign financial institutions and investment funds, and (ii) cer tain other foreign entities. To","page_number":171,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"0b7c7d9a-5578-47a7-b04d-caa82bdad98e","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":"716fe988-0afd-443a-96a6-6e67a2328b96","block_type":"box","text":"repor t to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":171,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"719990a8-1d61-4cc9-a2d4-6a76016dabd3","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":171,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"5f57574a-c57f-474a-b747-6a6f0704d7a6","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":"d8fa459f-bee4-479e-8d5b-7aab94543293","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":"20e0999a-e186-4f58-9b58-6287a5834edc","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":171,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"ff98ecf0-1d98-4ef3-9da9-d91a5565fa73","block_type":"box","text":"Under cer tain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":171,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"e40ab0ac-0952-46e0-b68c-f7627f6f8eca","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":"ec9da2b3-dfec-43f8-aa08-5fb274c0a230","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":171,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"a9d2bbeb-3b41-43fa-b2a0-13b5f0d4ae2f","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":"41614a45-85d8-40aa-a00d-2f1d5b3e96dc","block_type":"box","text":"account, an investor must cer tify under penalty of perjury that such number is correct and that such investor is not","page_number":171,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"c5bd1526-4441-4835-ad0e-f67f48f7718e","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":"5e67597c-a500-433b-a52e-c98d29810de8","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":"fb540397-841d-4173-94b0-d149bc73882f","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":"ea6beb24-7705-43e0-b0ec-955479a71760","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":"7031df54-e272-4fc4-8f87-b2540885a8a4","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":"3ae793d2-d014-4851-a1a3-032be312e534","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":"44c0bb04-e7a7-494c-98ef-6e07f203cd58","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of por tfolio","page_number":171,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"933919e6-f3f0-4ef1-b38b-39fb4c725075","block_type":"box","text":"securities are in many cases exempted. That a loss is repor table under these regulations does not affect the legal","page_number":171,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"88ff9cdb-bf7e-4580-8f59-e56ef6a5449b","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":"73980c89-d7b0-4ffd-a39a-8a0c26f400c9","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":"a90b2461-a922-4d05-8346-16acffa423ed","block_type":"box","text":"II-133","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f0b559e2-7511-4ed3-95fe-6a2c5141cb12","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f2aa8d10-7868-4520-a800-3370b8edeea0","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":172,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"7184b35f-66e3-429e-b3e2-e544226d339c","block_type":"box","text":"mor tgage pools or other investments may cause the Fund to repor t some or all of its distributions as “excess","page_number":172,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"364a63bb-b536-42e1-9372-1058b9f54a3a","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":"3d18a012-b080-4506-8501-297784c9653e","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":"4887ba5f-4d0a-4888-9b4c-f6202b448e4c","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":172,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"13ba2905-a869-4c8d-81eb-5bbe0e20ce59","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":"64dd9d2e-310a-413c-b481-04556439d603","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if cer tain “disqualified","page_number":172,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"ddc92fee-406f-4688-8193-7f41de6b982a","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":"643fd216-2712-40f7-84b1-cd7d175a96ef","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":"7d3d2476-e25e-4724-9925-44ab6289b294","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":"b297f451-18bf-424d-a89b-e0ab02980feb","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":"feb74fc5-85df-408c-a836-f5a80c1b2740","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":"03027f69-7284-4c1f-a51b-f5ba4858bd36","block_type":"box","text":"investment oppor tunities.","page_number":172,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"16818743-8fcc-4fd4-9a32-d3db981d1ac9","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":"c29b94e1-3947-4397-9124-7b15da0b3315","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":172,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"d850d011-488f-498b-94da-16ffe80f4831","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":"94809581-2933-437f-a22a-5df2c1137f40","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":"82b890d7-e054-4a55-9513-1a2ade410888","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":172,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"fb38c4d9-37c1-4eb8-8ebe-d2897fc26836","block_type":"box","text":"accounts and cer tain 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":"b75d2ae9-064f-45b2-8e59-a229ce5890c4","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":"b0522235-7db1-45c0-a630-b1790e919db1","block_type":"box","text":"respect to a security only if the holder of the security meets cer tain holding period requirements. Both the","page_number":172,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"9691c96a-94a5-4f06-995c-e53ea25c1179","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":"25e36df9-f704-49df-af96-094a92534ea3","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":"92f8f82b-c2da-417f-b1e2-3b657ebd8f4e","block_type":"box","text":"the Fund. Fur ther, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":172,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"63226b50-e17e-416b-afc0-17d86a7aaf8a","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":"a2f0637a-d389-41d1-a63a-936dc2e2d0e8","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":"4b8d66b5-7e2c-439c-8b3f-7f90cc57a9d0","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their propor tionate shares of such foreign","page_number":172,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"f6be1223-e01e-40ed-832f-524b0e33997f","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such propor tionate shares as taxes paid by them, and","page_number":172,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"9cc36530-0ccc-407d-b606-24578f1f7a4f","block_type":"box","text":"deduct such propor tionate 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":"95754879-3a36-446b-a18c-4c80b4f8ec41","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":"0a33c69f-622b-46d7-bf2d-2c3188340f79","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":"3e6a0730-408f-45d3-b353-802e655709ad","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":"04466a6f-2828-4cd6-ba89-24386f47a1cc","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":"77d3a374-781c-49be-9cad-f1118a7025c9","block_type":"box","text":"having been paid by such shareholder. A Fund will repor t annually to its shareholders the amount per share of such","page_number":172,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"e6265eb8-5cd5-4b25-a8db-e1addca00a1a","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":"142437df-3db2-46a6-b062-5c3c9f21b909","block_type":"box","text":"Cer tain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":172,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"f87d4d0c-7121-4857-a3e8-dd0648ea2a27","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":"72f35816-43f8-48ae-8074-f854dfe4ee09","block_type":"box","text":"allowance of cer tain 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":"5327204f-7ff7-46d0-b0d5-54cff70244a2","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":"0e6bd3ce-2701-4c1e-809d-218d665499a7","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":"384fe29c-4b6d-4147-bcec-decfd804873b","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market cer tain types of","page_number":172,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"6afa82d6-f19f-4508-8855-63f89ab28527","block_type":"box","text":"positions in its por tfolio (","page_number":172,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"0b9dbb48-ac52-4e3e-b2ae-9111059fd194","block_type":"box","text":"i.e.","page_number":172,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"31dd4059-8579-4807-9970-79ab55306e00","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":"251612fd-1264-4491-aeb6-215f043e1c28","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":"fe736eb6-819f-4b79-b6d1-361162c73012","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":"31a4d6c6-70bb-41f0-bd2b-f49f2914ab89","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":"0066d3fe-8c0b-48d6-959e-327573247b0a","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":172,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"5342920b-53e2-4623-b80d-0d19011752db","block_type":"box","text":"Cer tain 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":"f3eb6343-f670-42e5-a597-f8103c4504c6","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":"3f9fe997-4076-4ea7-9ffa-4c36e26aecfd","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":"2e8fd4ce-0b31-49b5-8039-dd1ec70b4f8c","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":"d2424540-0740-4ca1-b428-6c7facbacf0d","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":"fa1b146a-261b-49d2-9e86-9c24201531f7","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":"40ed3c8f-2e12-4281-ac94-51dee7d1da8f","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":"03abb19f-366a-4738-af4d-c4dc7e832862","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":"18b1101d-d494-4b20-82f9-edbc14bbfc52","block_type":"box","text":"II-134","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"13707018-7c54-4ba6-9488-e59695125cc5","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6f617d0f-05eb-4390-9e8c-185d725227cb","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":"7c605782-aec1-4ee8-b9f4-36d943d1e825","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":"ab9be1c0-fb26-4a1a-ad0e-e5f989c84eba","block_type":"box","text":"capital asset.","page_number":173,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"83efe1d5-f70a-420a-8d4b-59b5ad3dde1b","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":"7bd5b65f-5bf4-40da-a2b8-a54eaca66efb","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":173,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"930754e8-cc79-47db-8b62-71bdb008f24d","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":"c329255a-1897-4793-9bde-39e6efaafcbd","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":"3cb1932f-ffb8-4d82-8ce5-051f5497d082","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":"581a3a5b-6578-4563-949a-9ef80205c351","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":"b1417da8-7f0b-4573-a01e-b62fc72ac2db","block_type":"box","text":"Fund were to invest otherwise.","page_number":173,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"3d2c5ba7-44c1-4add-b6ab-8454d6f173e5","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":173,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"90c4a0bb-af42-472f-b90e-9439d9218158","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":"cca7dd25-9a07-46cd-a20a-e3ef840ac29a","block_type":"box","text":"income will be “subpar t F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":173,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"b42daa35-f0f8-4eb1-839f-a05207df087e","block_type":"box","text":"to repor t all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":173,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"f00fc8c1-5769-4612-bbea-4220c3aef96a","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":"117394e4-c3cf-4768-b84d-97abcedf0f0d","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":"adef93d1-413b-4f68-b20e-a236ab643caa","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":"fdd84634-18da-489d-86ae-3d03902c6950","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":"7c069e21-8f8d-4757-b0d3-7e0b539f7abb","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":"59595a74-aaa0-4357-bc45-5c858ea94c51","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":"cb3f7687-adec-4f9f-a093-81eeb6d88c3e","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":"cf3df59e-044c-4723-a308-782552711a0d","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to cer tain distributions from such","page_number":173,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"9767e4fc-21fd-492b-b9a2-d255316e6a0f","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":"4a2d54a6-2e63-4623-8bc6-84548cc295e3","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":"1c0947f1-89fe-4a25-9669-28e90968e89f","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":"15f01324-7174-468e-b4bd-621e398df5f3","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":"7b9e441d-421b-4512-955a-e9a5b793de96","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":"134cc843-30f4-4190-a0aa-ee445d6862a3","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":"9fc2e9bb-332b-489a-a4c1-119f05a478bf","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":"947edfe3-fd87-4cb3-a720-6fe2d0899b72","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":"3515cdad-224d-420b-9391-6a340056f61f","block_type":"box","text":"PFICs, but in any par ticular year might be required to recognize income in excess of the distributions it received from","page_number":173,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"21fff2e1-3a93-4920-a86b-3182bdc39d41","block_type":"box","text":"PFICs.","page_number":173,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"ccd0005d-4dc7-424b-8090-38d81f0ba782","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":"c5e2c06a-9fb0-4fcd-95b8-dfb45323c5dc","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a por tion of the ordinary","page_number":173,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"4e249fd5-16c0-42a1-88de-d3d5d19e0ca9","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":"82c2bee8-9f29-4fa7-8cb8-ebef6cbbec5e","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":"b50faba9-da69-41d5-aea6-5c6d08e9695b","block_type":"box","text":"the Fund would be required to obtain cer tain annual information from the PFICs in which it invests, which may be","page_number":173,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"680bbe4f-7262-4a41-b761-3edf5425d1db","block_type":"box","text":"difficult or impossible to obtain.","page_number":173,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"c720eab8-51ca-4f12-bab0-e4cf0857c03d","block_type":"box","text":"In cer tain situations, a Fund may, for a taxable year, defer all or a por tion of its net capital loss (or if there is no","page_number":173,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"026e024f-a22b-4344-979b-86093a54c18b","block_type":"box","text":"net capital loss, any net long-term or shor t-term capital loss) realized after October and its late-year ordinary loss","page_number":173,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"c01ad1bd-3ba6-4415-9ea1-b89f4b7c6a8e","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":"8e3bdf4f-06c8-4656-8854-022eefb9607b","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":"0ec4687e-d542-41cd-b035-142be0914c0b","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":"11110a00-8049-44a1-86c1-4f8b5710bd08","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":"613ceca3-c220-4250-904d-c17d47228c46","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":"8b66c637-2544-4fb6-9faf-dc02f7b43b25","block_type":"box","text":"Municipal Funds","page_number":173,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"6b51774b-555c-4e01-b208-8dc6c38047a0","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":"add46a1c-1a9f-42db-b197-bb10db62b0bd","block_type":"box","text":"Code. Under such section if, at the close of each quar ter of a Fund’s taxable year, at least 50% of the value of the","page_number":173,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"22031a17-8faa-4315-92aa-b89702374786","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":"48b5f88b-8f65-4f7d-999b-eabd6054eb61","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":"72406663-84a0-450f-b1b1-5cc252ef6bfd","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":"bfae7326-aefc-4a6e-99ab-95691b4bba1d","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any par t thereof paid by a Fund that are attributable to","page_number":173,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"41f17651-98d2-45d9-b89c-ec2141bbffae","block_type":"box","text":"interest on tax-exempt obligations and repor ted by the Fund as exempt-interest dividends. A Fund will allocate","page_number":173,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"260fb211-1b29-4901-8dd5-ce70217ef2c4","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":"975a8f50-f0e7-4913-9ca3-7df3c4cb8777","block_type":"box","text":"II-135","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"722fe5d0-0f48-41de-bae1-52b77292f1c0","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"deeaee0b-5ffc-41f5-ab02-18c4d191063d","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":"2a93cfe8-c5bb-46b6-9977-7f97c9e28242","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":"86c2e289-4eff-471a-810a-a63c793d802c","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":"32f94084-5dcf-4286-8582-929e01d65d7d","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":"05573531-74ed-4307-a3bf-22ab8ca0170f","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the por tion, if any, of a person’s social","page_number":174,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"57f121b2-fa54-4e3a-8560-ef7ff9e6427a","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":"4b047462-397f-4103-afba-9801d541392e","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":"2c6e83d9-2e7c-41cd-8860-4cbf0daa85e8","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":"27396b4d-d52a-4297-ae4a-26a157fcd6bc","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":"31caf81a-9255-434d-bd64-a48cd5884210","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":"2141df03-ba07-4e77-9acb-9f850256c0ee","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to proper ty financed with the proceeds of an issue","page_number":174,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"646c7738-927d-4962-966f-78883c4c15e2","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":"b5c00832-c7e7-46fe-b9a2-6739316a8b69","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":"1f56d30c-6e04-41bb-a69c-7f3d01ab4bed","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":"d80bc7a5-53a6-48dd-8c8d-22fb66a6389a","block_type":"box","text":"constitute exempt-interest dividends.","page_number":174,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"dec33c17-c4a4-4397-9297-e9a5bae63cb1","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":"61faebc2-2de1-4cc6-8acb-526ef589886c","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":"c4fc1249-da7c-4407-8224-9f22c8f66457","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":"8febaf47-ed57-4b26-8431-fab4d3335fe2","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":"45ab9b10-915d-4d72-aeb3-127d02b40ecb","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":"36216bb0-e66b-442a-a30c-d8218c14539f","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":"6796e341-8dc7-4c35-b8f3-3b43ed986fd8","block_type":"box","text":"All or a por tion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":174,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"5d0423cf-e428-423d-89ac-b3d4270b10de","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":"62576690-b704-4fa8-a7a0-1efc0a72a098","block_type":"box","text":"income dividends received by shareholders.","page_number":174,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"8d6bd637-c5fd-4fbc-81c0-d7bc0698d227","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":"0fa83c58-e54c-4686-b175-6b557361fa87","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":"dbfa1749-1573-4ed6-800d-de3f1c5bf350","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":"495ae76d-808a-49b9-b7fe-6738ab229890","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":"35fcfd4f-677f-4ce5-aefc-4e64de2a5054","block_type":"box","text":"the accrued market discount.","page_number":174,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"15836b6f-57c8-4737-9e1b-699383f075dd","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":174,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"44180e12-d8a1-4b14-9088-baa09056e177","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on cer tain “PABs” issued after August 7, 1986. PABs","page_number":174,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"87ed392d-bfa1-42cf-9881-24427edb54e0","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":174,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"9dc490fb-adbd-4f23-8e23-58650d65d84c","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":174,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"0143e8a4-755d-44bf-80d6-7d8cfa0bcae2","block_type":"box","text":"e.g.","page_number":174,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"f9098270-cca2-4e91-8787-49a090923f1c","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":"62917cc2-641b-4eb6-888c-56af283c3aa5","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject cer tain investors in","page_number":174,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"b562311b-496e-48c6-a80b-51d6903bdbdd","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":"bdeb81f7-2d72-4c56-aec2-be56faa3f81c","block_type":"box","text":"“PABs” and will repor t to shareholders after the close of the calendar year the por tion of the Fund’s dividends","page_number":174,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"539f0b10-6acc-4c58-a4a2-4ba9f2428227","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":"ec595cf5-68af-48cc-9543-8027c0cf9d8f","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":"b85b0250-a2fa-402a-8e85-3a10c13e6a07","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":"bb8f3df6-73c0-4d79-9a24-c9614a8d1a54","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":174,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"2443daec-d521-4d72-8249-955fb6e45963","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":"0a5be390-80ee-45a7-a4a7-71493ec98b03","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income propor tionately, they","page_number":174,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"c93964a6-6bf2-45b8-84ec-37ce9e9f8a27","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":"f96937ef-4095-44a2-b937-6b79b94f8c24","block_type":"box","text":"Please see Par t I of your Fund’s SAI for cer tain state tax information relevant to an investment in BlackRock","page_number":174,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"cae35bac-11fd-4e8a-90f1-d7c23b07c6c1","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":174,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"66f65614-de8f-4c47-9f2e-3b144ec103ca","block_type":"box","text":"Oppor tunities 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":"83d99c75-f360-4089-ab80-8d72973b29d5","block_type":"box","text":"within each applicable state.","page_number":174,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"3097eac6-05bd-4344-bd98-8b4e01be6c87","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Por tfolio in","page_number":174,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"28d11096-db15-4ce6-bba4-83126d489c6f","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":"a32cc7f1-5bce-415f-835c-7d0a645a173d","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":174,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"4f57fe5d-1a92-42f2-9220-4a7325a3e5b4","block_type":"box","text":"(depending on the par ticular Master Por tfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":174,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"a0f7126a-8760-482b-8122-2f5ae4c7b28c","block_type":"box","text":"to change the classification of a Master Por tfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":174,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"1c6188fd-9da7-44d9-a505-668cb0f15a8f","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":"88645f05-01ca-4c1c-9d4b-054f4d795946","block_type":"box","text":"II-136","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"400190d7-d1ce-4dae-9941-4dacc26937b8","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b9f53e69-9008-4dde-95d6-e8f2e9c568cd","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Por tfolio and to retain an investment manager to manage","page_number":175,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"d31f5f37-01dd-4378-a23f-6ba703af05ed","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":"82ec78cb-8bf1-49ac-9e15-016a4deae9e9","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Cer tain states exempt","page_number":175,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"153a3af8-bd09-40d6-bc2c-1c468cef36e6","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":"5b7ea139-3b84-4439-b0bf-180244eaffe9","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":"8fc31ca3-60ab-47a2-b7c2-b15fdd7ef574","block_type":"box","text":"exempt from state income tax.","page_number":175,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"e722a4ac-39ec-4ef7-9f78-a57de7afe1c4","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":"55e9bcd2-2f00-4eaf-be7f-a632c30098d5","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":"459cecf0-2a3a-4dff-8e55-ccd322bf0e93","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":"987b5c88-0015-4f6c-b394-9e8d7c9b1799","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":"5299a260-1061-4b4c-b988-7f57cc4ce3bb","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":"33e1a27a-ff34-4bb7-8961-301a5b5ab832","block_type":"box","text":"cour t 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":"230cc230-3546-4927-8001-063b8fae468a","block_type":"box","text":"decisions may have a retroactive effect.","page_number":175,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"b84f92c2-c817-4a20-af66-136ec583851d","block_type":"box","text":"PERFORMANCE DATA","page_number":175,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"ea77435a-6cbb-4c9f-99da-97e64522d521","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":"29f4140c-d3b9-4930-83f3-d226f9cf81f3","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":175,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"02d44803-e5ae-493b-b3c2-be9e2d59c413","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical per formance and is not","page_number":175,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"4f2a92ee-2ed2-44a7-8217-31d9b71b1722","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":175,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"502bdcfa-756c-44d2-9876-47b44acbc0c3","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":"4fb5e093-d38f-4a3e-9f6d-a86642109637","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":"751fd9c5-67e1-41e5-a96e-1810e688ccb9","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":"11dfb5e2-a695-4734-982b-a75078cf9ce3","block_type":"box","text":"gains or losses on por tfolio investments over such periods) that would equate the initial amount invested to the","page_number":175,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"26e54984-d637-425a-adb8-92b37ce8cdee","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":"7d39ae3a-df39-4adc-9e76-013d5515c204","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":"24b6ea22-3a87-437e-86f8-757472632554","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":"cbcee256-bc14-4b98-9294-ac1b369089b7","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":"ee237d25-6873-4c9b-9585-258ef928f2d1","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":"dc15fed8-1e2c-47f3-a8d0-820ada5522a3","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":"f77fcc8c-0025-468b-8f62-cc1e3d6ae817","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":"35753a1c-b3e4-43f6-97e9-bedd770fa4f9","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":"b8ee5d36-cdaa-4503-836e-129808d45816","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":"e834c158-9959-48f2-9eff-95f3e64cdd32","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":"9ee830b4-8e54-4394-a0e2-8fe6934e58d7","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":"08a09e20-f9fe-49cb-ac05-ead4ac0828f0","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":"e87c387b-ffe9-4a34-bf0f-57af3c2b89f4","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":"12fce14b-4b82-40e1-a2cf-5166603c447b","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":"a7fb5ada-4ef5-4757-a3ec-64e1544d9e15","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":"9466041d-d42a-4f8a-88dc-6fe7d308663e","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":"4e290030-3363-4034-a6ed-558ec3cbe1ca","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":"bfbaceae-76a8-40cb-a09c-8221f28a7a5c","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":"a36e86c6-69ad-41b9-a0c8-cab3a0e03735","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":"d814fb3e-7caf-4ad4-afac-c0f62815bb73","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":"a07ceb98-80d3-4ae2-b482-e02e4c978c94","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":"a5b12ee8-9f72-40f6-9649-44bde5b21fba","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":"f4f3d612-2f13-4411-8c45-9160a1d55e3e","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":"35055ed6-4097-4f12-a1f6-7a022eb3bdfb","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":"941c3f2f-ff93-4514-9011-b4b37342cb6e","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":"08823049-d048-411c-8159-8928e8f2186c","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":"50df01cb-d811-4b7d-904d-9532c04a65ec","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":"fd6bc532-c406-4fb5-9123-86e30c382d37","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":"f246fe1a-f1f2-4d5f-bda7-7d870c85c2a7","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":"ab9be9fb-cee1-4d00-9c29-d1c7ed91b776","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":"88aecb00-8d58-44b5-8998-e0a228d59872","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":"efaf52ab-4617-4fe0-9470-77f562047506","block_type":"box","text":"II-137","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3f2ddc9a-86f7-4ab2-98a2-b484f2de5f7f","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ff7e7914-9045-4d50-977f-601aad4b263f","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":"17c7774f-060c-4045-bc02-7178a4066019","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":"b78dada4-0996-4cc5-bedd-6f4d3702736c","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":"c1849876-410d-4374-9a28-a0a6a0f581b2","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":"0e1e7233-ade2-4877-804b-cef6910db43c","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":"ffa38f7f-6dbf-4c53-8da3-1c6b51e9655d","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":"96005cd3-7bf4-494b-94f4-a32a5e729b3e","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":"cee4db27-98ce-4618-80c3-057bdc389f93","block_type":"box","text":"per formance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":176,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"2f80a221-e277-4741-953c-e03c2f8b18bb","block_type":"box","text":"some other amount, for various periods other than those noted in Par t I of each Fund’s SAI. Such data will be","page_number":176,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"59e70d10-2acf-4cda-904b-601b1533da0d","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":"c312d057-a4af-43e9-8e1c-9fa8520bedfa","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":"761b97e7-0beb-451d-b69f-975a06be10f1","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":"461a7c91-88c6-4ab0-9672-8f2d138df644","block_type":"box","text":"per formance 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":"eb3483e9-3d09-4c0d-b753-afb7c2adadd9","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":"286c6d45-ddd2-4203-a918-50e5485aaf6e","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":"1e26e152-1975-406b-8fe0-00529e698100","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":"70e64a47-1f87-4c0c-a2b5-835453e800ab","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":"8f653d1a-4d46-4a36-831c-8cd512741439","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":"dcc22640-55b3-4bfc-b8da-b1a462ceabe7","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":"1ee909e0-9626-4af9-88a1-fe5add955a14","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the par t of a Fund’s yield that is tax-exempt by (b) one","page_number":176,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"c31228a8-9ba0-44ab-b064-c13ea42cbb68","block_type":"box","text":"minus a stated tax rate and adding the result to that par t, if any, of the Fund’s yield that is not tax-exempt.","page_number":176,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"04d4e843-1b17-4f43-83fa-c7845bca3dfe","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s por tfolio, a","page_number":176,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"26f05476-5657-45df-a5cb-85ae639c4dc8","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":"5540e855-4b15-4752-8620-f6ef131c2841","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be wor th more or","page_number":176,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"210f78c6-b897-441f-86e5-a45a6a39be9f","block_type":"box","text":"less than their original cost.","page_number":176,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"19bf6a7e-466e-4e85-867a-d9bbb60a91e4","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":"e4de295c-41cf-4edc-a9c6-c5cd5ed7d863","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":176,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"52b122ef-bcd1-4926-907e-2efd90767250","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in adver tisements directed to such investors may","page_number":176,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"e1896f84-c1f8-40c3-8c4d-748d08cccf0d","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":"52c129dd-830b-4d19-9746-4e893108d1d3","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":"bd2c953b-565b-4905-a773-e8fab02dad1e","block_type":"box","text":"lower amount of expenses is deducted.","page_number":176,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"8733e850-98ea-417e-86ec-09c99b04180f","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":176,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"924f3e2c-03b6-4d0a-9d48-9fef31e682f0","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":"61c789ff-0e96-410c-a02f-cda819ef66e0","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":176,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"b1c2e9b5-07c0-488f-943f-6f9ec43bd5f6","block_type":"box","text":"Money Magazine, U.S.","page_number":176,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"595e3598-31a1-47d9-911b-6b184fa20fb1","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":"cc2b1768-61da-4cb1-be10-39a99da52160","block_type":"box","text":"or other industry publications. When","page_number":176,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"a14002dd-6793-4295-ac72-b1ab82f60324","block_type":"box","text":"comparing its per formance to a market index, a Fund may refer to various statistical measures derived from the","page_number":176,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"2c9b8560-74cd-427c-a796-f7573be66b1f","block_type":"box","text":"historical per formance of a Fund and the index, such as standard deviation and beta. As with other per formance","page_number":176,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"2db48e7a-4ae1-4cb9-a554-9f01d7dd50a6","block_type":"box","text":"data, per formance comparisons should not be considered indicative of a Fund’s relative per formance for any future","page_number":176,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"42815b6b-61eb-4f67-88a7-632e15adb96d","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted per formance ratings","page_number":176,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"b7fedcf1-e3fe-4f97-9c7b-779376d89872","block_type":"box","text":"assigned by Morningstar in adver tising or supplemental sales literature. From time to time a Fund may quote in","page_number":176,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"ce935478-813f-48c9-a94a-53be6b332cf5","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":176,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"61875b80-fa0c-4d37-bea8-afadc7016aae","block_type":"box","text":"awards that may be given to the Manager. Cer tain Funds may also compare their per formance to composite indices","page_number":176,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"1e9e176d-2b9e-4ba3-8bdc-6dde2e264e40","block_type":"box","text":"developed by Fund management.","page_number":176,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"14c4380a-5133-4a89-8ae6-8f7f4c9e7284","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":"b96db48a-fe31-4f4a-aae2-2adce5859931","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":"50551c1f-86e2-4f25-8c89-8ed50b761953","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":"fd0cae73-a239-4e22-ab2c-fcafa457fca8","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":176,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"aae84c2b-992c-47db-88be-f18a1f8dd25b","block_type":"box","text":"techniques, comparisons of the Fund’s per formance or por tfolio composition to that of other funds or types of","page_number":176,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"5b18489f-d4b5-49ab-8548-daaf30d60eed","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model por tfolio. A Fund may also","page_number":176,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"771f0c64-f319-4441-bbc7-4ab0421c0d3b","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":176,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"4139f340-41b9-4339-94e1-cf31cff26271","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":"3e842f2d-6497-419c-882c-eb7d1d92edd8","block_type":"box","text":"II-138","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"872dc1d3-04f1-4d24-8afd-bb68f98874ed","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4912fda7-ed8d-4148-8227-ecbaeaedc1b6","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":177,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"da31643a-aa13-4161-8b3e-8e9207051ae5","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":"e979867e-57df-4b8c-973a-1d6ef023a4c8","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":"ede5103c-57e4-4895-9b43-03efa8a34acb","block_type":"box","text":"Policy”), with respect to cer tain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to cer tain other","page_number":177,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"a0eb041c-1b29-4684-9ac6-faaeeae2d397","block_type":"box","text":"Funds, as applicable. Please refer to Par t I of this SAI, which discloses the policy applicable to each Fund.","page_number":177,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"c368d0ed-b98c-4ca1-8194-ca71f71abf6d","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":"f573564b-4f05-4e5e-b93e-8dafa3a25914","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":177,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"c656dbfd-44c7-4c72-b496-f1e53f93f84e","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Par t I of this SAI, follow supplemental","page_number":177,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"3b1e21e7-9182-41c1-abd9-287d3ee3839e","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":177,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"7049040f-d8ee-4a93-bfe0-59fe9c7e5cf6","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":177,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"673d51d8-d4ed-43bc-9b23-6eb9e6c200fc","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":"c5369fb6-3b31-441a-a273-9a32bda8e529","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":"78e6ca45-e3ae-4ffa-bd98-adad864a7628","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":"f62c2349-db23-4e3d-b893-8da2a5d52cbb","block_type":"box","text":"addition, cer tain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Par t I of","page_number":177,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"8a390641-859c-4eab-a3f2-93cb8d4c8c2d","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":177,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"2dcccfab-55e0-4aad-9570-a7ee3bbd401f","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":177,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"218d2dd1-5481-4209-aecb-08128a6ac3af","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":"742e900b-9ca5-488a-9244-0a1ad67f1e15","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":"5945ff9c-be7f-4ceb-9455-b75de3a36c10","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":"dc842549-297a-4a85-9436-e0ef5953773c","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":"7a2493c0-1c73-42db-a19d-cf48f03b73b7","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":"662ea35e-42a4-4cbc-979b-85ba12d36747","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":"64467fcf-105c-4cd2-a910-c28f32ad503f","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a par ticular Fund pursuant to the","page_number":177,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"bc7f0f4a-5690-4c72-aeb3-78cb3b82935d","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a par t of the","page_number":177,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"4a2960d9-36e0-457f-9e70-15d08d64e97f","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to por tfolio securities during the most recent 12-","page_number":177,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"ae7c1831-a0b6-47a0-8dea-0eb30f6eb11f","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":"0bbafc4c-aedf-4f7f-958a-f75a2e18c308","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":"7580bb23-ac4f-4b0c-8f25-1b5d4f568c09","block_type":"box","text":"GENERAL INFORMATION","page_number":177,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"d964d27f-c21b-473a-8a87-df39bb6772d8","block_type":"box","text":"Description of Shares","page_number":177,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"5cea7bca-860a-4f3d-864b-2c190c1edb07","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":"ae76030c-3907-4ac6-b833-ba7485137045","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":"0f37aaf1-8df1-47ab-bb89-6be7156428c6","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":"d4daccc0-a57d-4a1d-a180-b8dea0ef2544","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":"6920a00a-6cba-42b8-abe9-dd0977fa76bd","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":"21f1697a-0965-49d1-942f-1e866097037a","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":"79df9c80-c246-4712-b73e-0fb0293da518","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":"a2c4b810-4086-435e-b2ff-e2483b25cbab","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":"8d66001f-66cf-40ff-8691-09d0cecd9d53","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":"74dd65f6-70b1-4469-87f3-f3adb13dbdf9","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":"80391f02-416c-4c0e-83e3-84edb1005650","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":"a29d0870-8989-403b-9f7b-a25d9df0f770","block_type":"box","text":"Common Stock is entitled to par ticipate equally in dividends and distributions declared by a Fund and in the net","page_number":177,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"891950bc-f408-460e-92e6-0a18564a9497","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":"6f87c44c-0ff9-4b3b-930c-306ce5dad027","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":"781edeef-f1e7-475e-b558-c412b4005b0f","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":"2f424a58-18f1-45e8-a3af-e78d44a49202","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":"7b4007c7-5e2d-444e-9fc9-af5dbc392c56","block_type":"box","text":"Cer tain 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":"833b9803-de41-4bf5-8e57-7db78421fc78","block_type":"box","text":"shareholders of such a trust may, under cer tain circumstances, be held personally liable as par tners for its","page_number":177,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"520bc5f0-2379-4765-ad29-cf2dba1f104d","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":"78205e63-da83-4403-9582-c000da625ea8","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":"a58f24aa-0a7d-4afa-80f1-6d7c7c4244c8","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":"b5c28322-3e68-4277-94fc-a2477a966b0d","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":177,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"772ccdd8-961b-4111-9cfd-d0f83980d1ee","block_type":"box","text":"II-139","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"24f4a76b-2b47-4911-940f-53781edcd63d","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c92dc385-4c92-4233-a420-ca4b222922f1","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":"84758bd8-499f-471c-89ef-f8cd500959dd","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":"8f8c5410-b84e-46de-94f6-53c765c7bae4","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":178,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"f216ea8b-6d8b-44bb-b4d1-299083064efc","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":"73191b38-a145-47ba-8947-f65371be49e7","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":"0e964f6f-1e16-467f-bf7c-14e75d9766c9","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":178,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"f00d0436-9caf-4a55-b49d-fc91a49a3e94","block_type":"box","text":"Additional Information","page_number":178,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"911a334d-57c8-47cb-9441-065311ab28bc","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":178,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"de70d183-ebac-4833-967f-665ea2021578","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":"f3c17bc9-f527-4dfe-ac9a-87db5214b958","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":"2878965a-6599-4bba-bdbd-e9fa9a6f7f82","block_type":"box","text":"such name to any other company.","page_number":178,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"b0c0888b-d2c3-41e6-8f75-d1740a6bd5cd","block_type":"box","text":"II-140","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4e0d0207-b109-4707-9cd6-dc016fee017b","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ee9bb450-9f27-488d-9cfb-45cbaaffee5b","block_type":"box","text":"APPENDIX A","page_number":179,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"fa42e849-a6ae-4c39-9b7d-6cef7558c2f7","block_type":"box","text":"Description of Bond Ratings","page_number":179,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"f6878425-698e-40ec-885b-fe03847e8506","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":"35ed528e-35f8-433e-a6de-252ea801da10","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":"59af2232-45d6-4985-9181-a0c62c3747e3","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they under take no obligation to do","page_number":179,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"ddb70d58-0901-43c9-9fa5-f8409cdca7b5","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":"b0da0e27-1fdc-417c-8d70-c0e2e586db26","block_type":"box","text":"securities on a par ticular subsequent date.","page_number":179,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"36258b00-2f21-453d-b3c8-617390260d53","block_type":"box","text":"NRSROs may rate specific investments (","page_number":179,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"c18f57b8-3b80-4b80-8fab-eee33ab887d2","block_type":"box","text":"e.g.","page_number":179,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"2d5543fe-798b-4ac2-a327-9da9d07a322e","block_type":"box","text":", bonds), issuers (","page_number":179,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"6e6cf789-3f46-4921-bf9c-b03f33d91d0f","block_type":"box","text":"e.g.","page_number":179,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"7b01b0bb-5b20-4b4a-9494-7c6df34de4f1","block_type":"box","text":", corporations, governments and financial","page_number":179,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"d0b95118-faf7-40cf-87e3-086e258683ef","block_type":"box","text":"institutions) and/or programs (","page_number":179,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"773be759-4546-4181-9b62-f967e9a90e00","block_type":"box","text":"e.g.","page_number":179,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"7aaa4162-0f80-42eb-beeb-c4c18748c325","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":179,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"82e78c31-9e66-4bc5-bf09-357cc3fe983a","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":179,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"2f3946df-8a07-4d28-a81a-e9a4b564092a","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":"61593721-88b9-4107-a6b3-cb62304f8a3a","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":"e423ee01-fffd-4ec5-8885-36124d46e536","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":"3f58e345-6541-4d7b-94e6-11bc2af8fad8","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":"223b8252-82a2-4052-811a-1439f82831f7","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":"19f107b6-c87f-4a53-ba86-92e77591fd96","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":"d6467ba8-0ba7-486c-96d3-a1ab1f60534e","block_type":"box","text":"security (","page_number":179,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"4b02bdac-c8bc-433a-a946-38da19cc2165","block_type":"box","text":"e.g.","page_number":179,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"609792c7-e759-448f-9a58-05628b9ba3c0","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":"37204c84-1a8e-4a20-a43a-04f595299acf","block_type":"box","text":"highest of the multiple ratings.","page_number":179,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"db0001bc-e96f-4238-b4ad-5a280baecef7","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":"9ae7d4e1-6c42-4c9e-867a-67cee6d21c0a","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":"5c0a39f3-657d-4b1b-a85d-126dc5c36ebb","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":"69b88d64-4367-4d6f-ad9f-e690a2996d99","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":"2548aa21-1dc8-4d6a-a2f4-3c5c99d09991","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set for th in the","page_number":179,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"057e8b40-2316-41c3-9066-47ee4894ad93","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set for th in","page_number":179,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"1a95ad31-cd4c-4e05-90d9-fa12e8d901a1","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":"2315ef5f-e684-48c2-899f-dce7b6cacdf1","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":"337e5a9a-2f50-4fbd-9eb7-41c6487fff2e","block_type":"box","text":"Where the investment objective of a fund is to track the per formance of an index that includes credit ratings","page_number":179,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"a464ac1f-f1a0-4ff7-8f2d-7012eb85be1e","block_type":"box","text":"eligibility criteria as par t of its index methodology, the fund may purchase any security within the index, such security","page_number":179,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"64ee41fa-cc90-4979-b004-1b9c1c284238","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":"0f951557-87eb-4697-a00e-1dd202ed5501","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Fur ther, the fund may","page_number":179,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"42e9d717-f81e-4f84-a4d9-8e5666aaea3a","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":"0386fc94-5e5e-4f0b-b477-87339e107e52","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":"1180afb1-ecae-4158-bdff-8e4e6123277f","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":"65c4e55c-1f12-4744-8e9c-a7d9b7697736","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":"4ac7d0a6-fded-4a42-b541-51afeb32384b","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":"3a0aeae9-cbae-468b-9b37-e238a813d70b","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":"9285e191-e773-454d-b738-7c039c7be512","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":"57e044a2-b963-40f1-8239-ac1fd82eae62","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":"977ee2ea-be31-495b-a5ea-2be58fa2a00b","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":"0b80adc5-4927-4377-b04b-856b17ec87a9","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":"527aec44-2932-4fdc-8304-c964eee26aa0","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":"92e8b8de-548a-4178-94bc-5d735dbcd538","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":"4faa7b24-c06c-4684-94c9-063c3d6fd0d7","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":179,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"8cda4d92-3a04-4875-a33c-a1d35d58e988","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":179,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"857a29df-297c-4cb0-8cd9-79e8af070452","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":"a04370c1-c7c8-4f57-ac6f-1e017f8b9118","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and shor t-term rating scales and are forward-looking","page_number":179,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"e4ba7285-5bdb-43ba-ba61-0056b463e7de","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":"cb125244-b37a-4e3b-bd64-c91c87bbc517","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":"d7c87c62-720f-4c78-a277-72be562e0191","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":"80abf8fe-a53b-404e-9665-1e116e5e2a46","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":"67186ead-604c-40ff-9fe8-4ea560448d18","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascer tainable amount, which may vary based","page_number":179,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"b43c6345-8792-4c7a-af9d-dfdb84debb9c","block_type":"box","text":"upon standard sources of variation (","page_number":179,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"2db64fce-b10a-4fcb-9340-13bcab412ed8","block_type":"box","text":"e.g.","page_number":179,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"dfbf87c4-e286-4ec3-9c69-f3de695c6ba3","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses","page_number":179,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"6c69fc53-53a9-462f-9761-37eb3510e8be","block_type":"box","text":"A-1","page_number":179,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"eb573734-ec03-4b47-99a5-a2048039cef7","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1ddf3be6-29d0-4824-b09d-ec99c26bf2b2","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":"c1e06916-4114-4ecf-8f84-3c6b67e9017e","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":"829c8824-8518-4844-8839-371310468237","block_type":"box","text":"e.g.","page_number":180,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"9adb1c59-2fe3-4474-8d49-e741f956c4d9","block_type":"box","text":", equity indexed), absent","page_number":180,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"e7569c32-f16a-4820-8e9f-d5d0b8710104","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":"2a2129f8-549d-4b0e-98f4-4897f8e7fa20","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":"77404b90-d7c9-4782-9474-ef6aa22759ed","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":"638dea93-4112-4f62-839c-41659f3a6d3e","block_type":"box","text":"the event of default or impairment. Shor t-term ratings are assigned for obligations with an original maturity of thir teen","page_number":180,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"03ffdacd-f4fa-4149-8bf7-fc165a3dfe12","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":"b06a9bc5-bbfa-4f57-8598-b1a403338c73","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":"2c59cbc6-0e45-488a-bcb4-60161d09ea74","block_type":"box","text":"and instrument level on both the long-term scale and the shor t-term scale. Typically, ratings are made publicly","page_number":180,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"4d4ae663-83ae-4981-a482-5a2f1befcb85","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":"ccbbbdbd-94bf-4589-a07a-4dc7a810c16b","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":"72e9a010-1ecc-4b46-8f09-14d8568caa66","block_type":"box","text":"i.e.","page_number":180,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"1f0fc493-12f5-4ffc-a51f-892bb1cfb819","block_type":"box","text":", ratings on nonfinancial","page_number":180,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"a79f3be2-b66c-4b74-b84c-228ad92dc82d","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":"3e3e6ab8-b82b-4010-9a7c-7f92f496111e","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":"4c387276-df9c-4fa5-ae4c-76a1f012ede6","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":"f6168745-4654-4c38-923d-fde6e206d148","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":"04cd3064-609d-44f3-b65b-335db08184f4","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":"457cc2c5-8722-4c78-82e3-444635e9befd","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":180,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"193809ef-a18c-42f3-b525-4ebc68571d33","block_type":"box","text":"of time.","page_number":180,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"2d1eca55-dc43-4bb9-8191-ba31a4f83795","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":"3ef4edcc-fc24-482c-afa4-ca420bf8e9ad","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":"b82574c9-a80a-4904-82c4-46ea189ce759","block_type":"box","text":"risk.","page_number":180,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"21208226-0c44-4fb9-84a8-bbe81d250814","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":"1c57e96c-b9ce-4805-8a4b-589be6fa7b32","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":"53e38e59-f2cf-4d77-be66-782b93b4d12b","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":"e4dd5829-fcdc-42d0-9bee-e0662b82d6e3","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":180,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"63d4e649-abb4-4f38-939d-d1ae90966794","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":"dd57a178-5ad0-43dd-926f-1fe6c0bdf41f","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":"e022c182-bdff-44f5-88d5-d609bfb9ae3c","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":"236db23c-6f12-42b3-a83a-c00e33404799","block_type":"box","text":"credit risk.","page_number":180,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"b2fe1f1b-9ca0-4db1-be6e-5d74198220b1","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":"358933db-5eeb-422e-9965-c2fa7d37c7c2","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":180,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"503f9b6c-c357-4f67-ad54-486e153595ee","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":"15fe3f2b-ef83-4529-b0ef-32f8c738d9ea","block_type":"box","text":"of principal or interest.","page_number":180,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"3206e3a0-77e1-464f-98b9-e274df753989","block_type":"box","text":"Note:","page_number":180,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"31f250fa-c6dc-4a33-8d96-1f0b331f8e3a","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":"705ce5ab-be90-46e7-a7b9-18a46bc40e12","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":"a5286009-79f8-4df2-a572-af1d09554dd6","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":"88bd3bc3-776b-40b8-848b-986b23cdc2a2","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":"9698e931-8540-4ddd-99c5-4929bb541543","block_type":"box","text":"companies, and securities firms.","page_number":180,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"49cb7f9a-f74b-4c57-b67d-9d44f6ed4d69","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":"8a199f49-9d20-44bf-99d3-1dc16fbaf223","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":"ae745d48-5007-4e41-9c32-b8ffed6c9254","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":"e99e7fcb-d949-4dbd-8ed8-70aa5ca5dbfd","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":"7ada86d3-193f-407f-a34c-b812674527ed","block_type":"box","text":"that security.","page_number":180,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"bd5642c5-59de-457f-8cb2-2f3c12d17661","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":"eef6af23-430e-41e5-b560-90fe847a09b3","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":180,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"a7934aca-4a6a-4725-92e7-0c9e3bc41e2b","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":180,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"29c597fe-0608-46c4-9bfc-c706b305a8ac","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":180,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"a9560420-3eee-4ed6-8479-95e61562c49f","block_type":"box","text":"NP Issuers (or suppor ting 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":"9c9799d3-8211-4b0a-b589-d6cbb2827dce","block_type":"box","text":"categories.","page_number":180,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"63bcb409-0526-4f39-826e-6bcb1402c853","block_type":"box","text":"A-2","page_number":180,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"c4142171-d8ad-4abe-bfaf-2378eedb7e01","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cfe35cb3-df84-4d1e-b903-e3a070f9d382","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":"d95fc732-2faf-4d4c-9d7c-5867c79ec384","block_type":"box","text":"Moody’s uses the global shor t-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":181,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"e9cf1217-aafb-447e-ac01-0f3da534115d","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":"182449ce-f565-467c-87de-7e3434125005","block_type":"box","text":"an issuer’s self-liquidity.","page_number":181,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"143678f5-e66c-49d2-8468-6156dca1fab4","block_type":"box","text":"For other shor t-term municipal obligations, Moody’s uses one of two other shor t-term rating scales, the","page_number":181,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"44439586-d3e1-4b7e-8e6a-c02b3b6f6409","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":"860b8005-0f31-4d5d-aa30-60399062c123","block_type":"box","text":"MIG Ratings","page_number":181,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"8764d34c-f486-4098-a907-2ba43f2dd45f","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and cer tain other shor t","page_number":181,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"d7e590ec-a76a-478c-b1db-2f7f5ef8269a","block_type":"box","text":"term obligations, which typically mature in three years or less. Under cer tain circumstances, Moody’s uses the MIG","page_number":181,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"6f91bec8-8a5a-4c9f-b5c2-36827bce915c","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":"d0954e90-9fc0-4d1c-b47c-a1a2f21c21cc","block_type":"box","text":"MIG Scale","page_number":181,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"b5bf6446-0536-4245-b8c6-931a59706ed7","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":"d235f07b-f6ac-4d0b-b82e-66c2166ba13e","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":181,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"370cffa9-bb7d-47bb-80bf-21f657530783","block_type":"box","text":"refinancing.","page_number":181,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"c9b13ee5-b5b7-4f14-9a8d-e78a0a1b036b","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":"e71760d3-9edd-41f6-ab50-7ca17098306a","block_type":"box","text":"large as in the preceding group.","page_number":181,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"f58afea5-f429-4515-ba0f-c0e266029609","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":"cbe2638e-3486-4b46-84fb-ccf898fd0eda","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":"95fc6f4d-ba75-4c80-a74d-f0ad46c9c0c2","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":"9289e508-5ccc-44b2-8a65-f13898aedbc9","block_type":"box","text":"lack sufficient margins of protection.","page_number":181,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"312e6cef-60f5-4314-b166-4d11264a69fa","block_type":"box","text":"VMIG Ratings","page_number":181,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"4d0f7c1b-5532-4656-9a68-905ba23b08f0","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":"2f426133-6658-44e5-b18b-4ae3649ab1f4","block_type":"box","text":"are a long-term rating and a shor t-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":181,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"75f5a6d9-3141-4222-9fc3-58312f8ed7e9","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term payment obligation rating addresses the ability of","page_number":181,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"2e18f4bb-fdf2-42ff-a524-49012c68bcdc","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":"1d451caa-f838-404d-aa42-e1aa087ace0c","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The shor t-term demand obligation rating uses the VMIG scale.","page_number":181,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"5598268e-e200-4b6f-8792-f6591a8e2dcc","block_type":"box","text":"VMIG ratings with liquidity suppor t use as an input the shor t-term Counterpar ty Risk Assessment of the suppor t","page_number":181,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"2d9f472a-0146-4fc2-b809-dc8c9472a439","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third par ty liquidity suppor t. Transitions of","page_number":181,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"9e2b5b15-62b6-4d79-ad7a-2d1587e78528","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to","page_number":181,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"405eb5bc-64c1-4fc6-b4c1-2e07147f8f28","block_type":"box","text":"reflect the risk that external liquidity suppor t will terminate if the issuer’s long-term rating drops below investment","page_number":181,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"588fe4f6-7e15-4b96-a2f0-6184d6c4e154","block_type":"box","text":"grade.","page_number":181,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"2065e133-beb4-4205-bf5c-eb77f9da3d32","block_type":"box","text":"Moody’s typically assigns the VMIG shor t-term demand obligation rating if the frequency of the demand feature is","page_number":181,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"99796ddd-8eda-4762-8182-6f49baa7f9db","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":"304a7397-37b9-4d41-8768-458550a881f1","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":181,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"5eb5d7dc-827d-4813-8ae1-dead221a114f","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":"3c43a4f9-d40f-4cb6-a7e2-3239065aaed0","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":"8ce3a5a7-518a-44f6-af90-ff4fd56440ce","block_type":"box","text":"liquidity of the corporate obligor.","page_number":181,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"209f5cfe-9c10-4390-9ce8-d0efbe35f610","block_type":"box","text":"VMIG Scale","page_number":181,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"196f4d6a-c894-4ec0-adda-ce7cf66f8526","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":"8542a093-ee46-41e8-a7fd-8011c0f2ef14","block_type":"box","text":"shor t-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":"134a4ab7-1115-48f6-bce4-7c99fa075b15","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":181,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"ff57623d-bd8b-4853-bfa8-e92566aea68b","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":"2aa3b0ac-eb93-410f-ba12-9a05ce4a44df","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":"81d011f6-ed93-4652-a8bf-0e7ff1fe1c76","block_type":"box","text":"satisfactory shor t-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":"e83dcbac-1bbf-4e38-80d4-fa5c653e1d59","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":"a18959d0-a36a-4236-a794-7ed5869a931c","block_type":"box","text":"may be suppor ted by a liquidity provider that does not have a sufficiently strong shor t-term rating or","page_number":181,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"c71254ff-921c-4eda-9e6d-70f479083788","block_type":"box","text":"may lack the structural or legal protections.","page_number":181,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"77887db9-4cc9-41f3-92db-a2496d40053d","block_type":"box","text":"A-3","page_number":181,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"3c365594-42e6-4049-9ddf-519b6ec424e8","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"48f04c4b-5a26-4fc9-8508-0e807a712756","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":"a6ad97e7-1131-4241-8536-bf98da0f066f","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditwor thiness of an obligor with respect to a","page_number":182,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"af78a040-e739-4ebb-bd9b-0ecf0bb9bb1c","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":"a3c72799-b8d4-47a2-9b5c-97438776144a","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":182,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"0129ef97-0df8-474c-a7cf-168164443f01","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":"1f20f290-ac4f-4a9f-9fb7-b4493ac8270b","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":"0f8bd320-c0d2-4fdd-90dd-329d3a825598","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":"9e2138d0-a570-49dd-bf30-0bd72fbf6d8a","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":"b4285505-e774-4e2a-b432-cb7a52a993a7","block_type":"box","text":"Issue credit ratings can be either long-term or shor t-term. Shor t-term issue credit ratings are generally assigned","page_number":182,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"169ee62d-70d5-4f07-b438-fd3e4a398d8a","block_type":"box","text":"to those obligations considered shor t-term in the relevant market, typically with an original maturity of no more than","page_number":182,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"742a1e84-b8fa-4eed-a08a-3fc4415b3462","block_type":"box","text":"365 days. Shor t-term issue credit ratings are also used to indicate the creditwor thiness of an obligor with respect to","page_number":182,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"dfdb5cff-6858-4891-a0cf-cbef0da634e4","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":"f93c1b34-05e9-4147-9b33-cc8e31f2e4bb","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to cer tain instruments may diverge","page_number":182,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"c48adeef-f03d-4def-9cae-b7f4fff058bc","block_type":"box","text":"from these guidelines based on market practices.","page_number":182,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"94ea2b38-7f1b-48cc-a25c-674d1137de3f","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":"03bfe2a4-c4bd-48ff-8f10-60166a81bcd1","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"0e99e400-29d4-4e19-b1fb-175434bda554","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":"4be5d94b-f50d-43f6-8292-42cfbeb9b87a","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":"8b2a7734-590b-44f1-9716-028a6b35a7bb","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"dc27244c-e029-4d28-8ce0-6e505c8f1ce4","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":"fe626d03-1d33-476e-b975-88ad41ff7e7b","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"14b15dfb-6db0-4fc0-85fa-ed8ee37ee8a1","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":"5e12ab6f-b23f-4363-b908-c4f0058b8211","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":"7c80b753-5aa5-44f9-b686-c964106fede9","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":"20af3821-4ab2-4945-906a-9158776e18b8","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":"5b3f099e-4fb6-4ea7-8f72-be9dfd53e2d8","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":"0541217e-12dd-4293-ada9-b2e507181526","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":"0119cf70-c66e-4651-a73a-a7e14fd53dbb","block_type":"box","text":"obligations.)","page_number":182,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"7fdeee00-0fdc-4512-918e-1716b5301e7e","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":182,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"409e23ff-22be-48f0-9d6a-995086c02406","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":"683b62e6-7c7b-4500-80ca-9d75a2b6ef95","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":"214dbe1e-42e0-4f82-a00c-fc52cec8228e","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":"937b527f-31cb-4ba5-9e35-7a4e16501db0","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":"f061fb28-c6f6-4a5f-b5a7-2204adacbf7d","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":"7157afe8-6692-48ce-8e64-5a6c66c85d0f","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":"06fc5e49-0be9-4134-a929-5003e266a12b","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":"5af3aad8-d993-46f8-abd7-06fa9a6fa7d6","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":"a1a8da84-f64e-4e40-96aa-7bcdeaef97fc","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":"7f384a31-9517-4c05-a851-4226b8ef712a","block_type":"box","text":"financial commitments on the obligation.","page_number":182,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"dfbd3218-4098-4593-b751-5a7858b1bc1a","block_type":"box","text":"BB,","page_number":182,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"9c083f9f-d7bb-4abf-ae86-4ae7204141a7","block_type":"box","text":"B,","page_number":182,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"7af12023-1c33-41f7-96b1-5fb1eddb917d","block_type":"box","text":"CCC,","page_number":182,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"aeda8a00-0423-4430-9e14-ee94678a1d36","block_type":"box","text":"CC,","page_number":182,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"9c475efd-fcfb-40cd-a4d4-20de9526c95a","block_type":"box","text":"and C","page_number":182,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"fcbb257c-d693-4df7-9758-c68705073603","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":"b08f6490-7f72-4ead-a728-be0e0e20cf29","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":"e08c2a5e-7498-40e1-9783-5456aab9dd3c","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":"c862866d-ce49-4c6b-affb-1ae0361631dd","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":182,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"9f80c39d-9cb2-4812-9a5d-ddd2102a4b18","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":"b936ea83-8356-4010-933e-b20f8331800f","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":182,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"38291733-e585-453d-92a4-af07b9975fc1","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":"2f779884-56fe-41d9-a039-ae49dac77323","block_type":"box","text":"on the obligation.","page_number":182,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"d1002d06-e69a-4548-9c68-e7ac350ca355","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":"eed9df37-0228-4536-b322-4d17c303c6b1","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":"7ffd292c-0b1f-449e-9c30-0994e10be59c","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":"38836bfd-1889-4458-a3ca-822ad6404b33","block_type":"box","text":"financial commitments on the obligation.","page_number":182,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"c4f49e9f-a569-4461-931b-53ea42c5c107","block_type":"box","text":"A-4","page_number":182,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"c9a476b8-64b4-4edd-9721-c5790ba6a953","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7497d97a-c92c-42e2-920c-0a6dc3e5cf82","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":"1bcec347-731e-410c-a0f6-b2a3db293188","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":"eafdf5e0-094e-4ebe-834a-49f935f9fff3","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":"3592ade7-ef78-40ae-8795-2054c1f18e80","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":"32994519-3b26-4abe-a08b-4929f7aa2e0e","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":"068cbf32-b8b1-44a6-b17c-59240d75dfb8","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a vir tual cer tainty, regardless of the","page_number":183,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"8748f87a-09c8-4dfa-83c1-b1eecddc4687","block_type":"box","text":"anticipated time to default.","page_number":183,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"54511428-ff3d-4e4f-9f20-9fa7fc9e6b5b","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":"85fad9a2-62d4-4db4-a79a-eeb02e247b88","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":"90d9b17b-d265-4e43-a987-474912ef7fff","block_type":"box","text":"higher.","page_number":183,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"0a314b92-8806-4cf3-818e-edffb395de63","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":"7a07c520-2704-4680-9d7f-2f619c0f0822","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":"f345e25f-dec8-48a5-a62e-45610399fd57","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":"ae09f43b-f007-4d7a-983f-4ff95605e23b","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":"6dc89802-d00e-49c6-a939-693ad72d694f","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":"a7b785df-6d09-4a21-92d8-08c1c537df54","block_type":"box","text":"action and where default on an obligation is a vir tual cer tainty, for example due to automatic stay","page_number":183,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"ade60a5b-c7fb-4c30-a452-609b11e61d1a","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":"94f2975a-b54b-4c95-9505-1471464e7c88","block_type":"box","text":"restructuring.","page_number":183,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"91b4e4be-d9aa-4f27-a874-9bd050cd6a40","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":"a152d133-a781-4ce4-91d0-7126c1e3e340","block_type":"box","text":"standing within the rating categories.","page_number":183,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"56ea4c34-c546-4a7f-98f6-a61f2c056e6e","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":183,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"73429615-830d-429c-ab95-09c65863e0c8","block_type":"box","text":"A-1 A shor t-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":183,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"f214e78e-ab5e-4bf5-a345-025dbb0029ca","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":183,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"e89f50a2-ab69-434a-9536-3cc47b5fc8c2","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":"a773b658-9934-4101-a824-cb82d6cd0c06","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":183,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"58b98441-89c6-4293-83de-3f2010aff963","block_type":"box","text":"A-2 A shor t-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":183,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"eee95316-f9a0-4ac0-9d36-b070bf6ab05b","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":"99c7a32a-8d48-46fe-88c7-cd6aaf8050c1","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":"317b6dd4-29d8-4b86-a1fb-6db6d7dd164f","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":183,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"b0e3c96b-dfb0-41b4-8477-eaa06c532b43","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":"dd57d4c3-50ec-45bc-bb81-38528a4ccce5","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":183,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"21afa53d-bcc4-4d92-8b33-4cc7a38f2697","block_type":"box","text":"B A shor t-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":"077f0480-71c8-42c9-977d-460a63b61c17","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":"f8c4d4ea-30ef-47dc-9bc8-5441b34ba614","block_type":"box","text":"it faces major ongoing uncer tainties 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":"d06bba1c-a05b-4a7b-a6e7-479fd584553c","block_type":"box","text":"financial commitments.","page_number":183,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"ac56c006-ec52-46b4-a0b8-47e4b42409d9","block_type":"box","text":"C A shor t-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":"4d3fab12-3bb4-4ab7-9259-f23fd70515a5","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":"66d6859e-b568-489b-a93a-f4163e757cd2","block_type":"box","text":"commitments on the obligation.","page_number":183,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"9ff8f856-9777-4e4a-a358-ec3af08a2a88","block_type":"box","text":"D A shor t-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":183,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"0baa24c0-1375-4227-ad2d-38fd0f2843cd","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":"ea55d11e-92cd-49f3-acad-5f6070e62356","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":"186fa822-c246-49d4-be2d-44b40922e1fd","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":"68b7c748-05ae-414b-97eb-99d328e18a4f","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":"22325f1a-b2eb-49fa-a012-d7ef8394b68e","block_type":"box","text":"of a similar action and where default on an obligation is a vir tual cer tainty, for example due to","page_number":183,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"71320b1b-ecc2-4a9a-bf3f-fa1ce9979752","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":"5c8ce21c-df1f-4ae7-843d-e39fd503c894","block_type":"box","text":"debt restructuring.","page_number":183,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"f1c43e1f-1db5-4c9e-804e-9e9128bae4df","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":"bc86b9ac-01ea-4b39-a22e-d658ddc12c26","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":"ca38c95d-e70e-4677-889d-88b3a0f67bc3","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":"c766030c-924b-421f-bba5-8769b8a897a4","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":"f40d75ad-8164-4af2-ba1e-614efcb52bee","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":"3fb98722-fe9c-4597-b79c-1806d648915a","block_type":"box","text":"A-5","page_number":183,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"693097cd-2bfe-4d4e-b204-6d6076bfa43d","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5995d0a8-d177-4786-a929-aec01a5c6c86","block_type":"box","text":"•","page_number":184,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"188abaac-59db-4045-8ba1-6df8b9c2ddd9","block_type":"box","text":"Amor tization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":184,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"80fca417-92d6-4649-9f67-b16011b71dfd","block_type":"box","text":"as a note; and","page_number":184,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"21f3a91e-c636-413c-9338-11885d4e4918","block_type":"box","text":"•","page_number":184,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"910ecaab-9972-4c43-af31-29908befa5f7","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":"fb638f44-55dc-4b08-95ea-7a0e6d3b072a","block_type":"box","text":"treated as a note.","page_number":184,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"a306f3f3-ea7c-45bf-9a5f-4c8bc04ca8aa","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":184,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"5dbc4428-a0f8-45ad-abb9-270cc3752f26","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":"5e85cf6e-9fef-4443-a464-e3582912bfd5","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":"7ee2c065-cf5c-478a-9db3-624170b70916","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":"304f4e03-c257-483e-9718-0ea16c3a3edb","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":"40c436c5-0d39-49f0-a537-7a596bdc42d6","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":"1244bf4b-cf8e-48f0-8e6a-55266ce5e937","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":"e84a9e8c-0e0d-457c-9dd0-2ff125cec6fa","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":"43a1cb61-31ab-44e0-8d3f-1c3d8073a359","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":184,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"8b1e3809-b85b-4e6d-8be8-57a9cebdb611","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":"e324191e-7f7a-4116-ad85-c321bf3c47cd","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":"8f03810c-709f-4301-b6df-d27aae565554","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":"b307690b-43de-4087-a9a4-bd0232caf17c","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":"fe5c9f76-13a9-405e-81a8-242ee7a219ce","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":"1caf4c06-9b16-465c-859e-c917a6599a88","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":"31e5175a-7b54-4663-a2dc-d734d6983779","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":"d944cb56-2767-44dd-ad80-9561426ed4b8","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":"a336c93a-3da3-4401-bafb-f8eaab2fe2df","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":"d3f5fa7b-725e-4dda-a657-e9bfcefabb36","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":184,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"d7b5222e-ab6a-4324-9ba4-a4a8016b6f28","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":"f851231a-2eca-41c6-bddf-011d6489ab98","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":"3ef5267b-3a7a-4c2f-a559-59627e64ea8d","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":"bcb7cc8f-b9a0-4e97-88ef-f4097dd83ea6","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":"79d9b753-d3e6-4f04-a6e4-083944944248","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":"8e25da47-e73e-4f35-a851-743a2fdafbf5","block_type":"box","text":"receivables or other financial assets.","page_number":184,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"e82cd029-4b83-4120-8124-79ec102657f2","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":184,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"fbb3cac9-3027-4a63-9c8e-8539a7d5bd2f","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":"b1845ad1-84e6-4086-8340-c42ab390d65d","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":"bf39df26-02c1-476a-a4d4-438eeb8384b9","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":"86ade7d4-d333-4fe0-8ac0-76dfb8a20d54","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":"9234161a-55d7-4c9f-984d-fefcb7204ff6","block_type":"box","text":"occurred.","page_number":184,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"34bf58e6-fb43-4bdb-9117-9474122e4057","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":"21c37a8d-d4fc-41b1-883e-6284ddb9faef","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":184,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"1bb14e97-30b7-40b8-9e49-fc987d28185a","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":"babe5c68-0508-412f-9488-f36ff9e07e98","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":"c94e626b-b180-455c-9c38-e89cadb193ab","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In par ticular, ratings do not deal with","page_number":184,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"8672210b-4c42-40e1-9fce-8ea140848ffb","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":"75aebd4b-0136-42e7-bba1-b468e663153c","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":"ff266611-df77-47d3-bbb0-4216563e6953","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":"ad2d1f91-86b6-4e76-b422-769b9de2519f","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":"313dba32-c24d-4fb8-90d5-70f3d7f1efd2","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":"87f1af07-1442-4fd7-a885-a37023e401a0","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":"add02263-d518-4853-b4ac-6bdfcf4416a7","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":"9989123b-f779-44ca-b14c-4dd1edc25221","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":184,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"19b5444b-f33a-4b9f-83ab-a6e443ef6dc9","block_type":"box","text":"i.e.","page_number":184,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"fe94132e-af15-4f01-abe4-1dbb312c9d74","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":"4ef0591f-4826-435d-84c2-97f9dd834f4c","block_type":"box","text":"the obligation’s documentation).","page_number":184,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"be27f986-8cb9-4de1-8346-dedde8f3fadc","block_type":"box","text":"A-6","page_number":184,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"f3f7b5c2-d0c8-4a34-b9a1-a4193178bfac","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"207f1d44-106e-43dd-a680-3f797cbd03ca","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or cer tain note","page_number":185,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"4cbf5b4f-4adf-4a3a-925d-deafb478734b","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":"e7142d3c-b952-42bf-ae82-3e0f5853217d","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":"aea0db39-3db4-449a-8b58-61c0202db18c","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":"f1ee6b20-30f0-4ad1-bd52-0391867c448f","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":"8038a0ab-4970-4316-b52b-dde3bbf6d1cf","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":"4b71a081-5da9-490b-9dee-8cf0038313a0","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":"a529c7d5-82d0-4a59-aa5e-3f209b0e0483","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":185,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"3e7c9505-c343-4d1d-a0c1-94acdf263c8e","block_type":"box","text":"e.g.","page_number":185,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"e9009654-a377-40d8-84dc-742feb2ed37a","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":"6e498df9-cbad-4439-9590-a6af2ffa4567","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":"29f12574-631e-43fa-a0d5-e3aaf0f18cd9","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":"643d7f18-8fa6-44a5-910b-1a6b9bc0fa5c","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":"e13a38e6-9cf2-4997-885d-b5ff09a38d1f","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":"e27e642b-3fa9-4e7b-847f-a37a2dc8a7ed","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":"d4426cbd-7bb6-43dd-9d3d-306b85cc80e5","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":"89462a60-6ee4-4ad5-8730-bfe9a7fe346a","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":"ac12a339-af55-44b6-ae01-648ada16cc0f","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":"2a5dc388-00d1-409f-9a6c-202f03c44d5f","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":"6fda46a8-168e-4696-80b2-4e2bee12386a","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":"7d42e26f-61ce-41cf-b53c-30a2fa8f1dfb","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":"8d461251-62d7-4cea-a60c-ecf773d9f017","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":"dfaee02c-05e4-44f7-8452-38a2a5b15730","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":"d7abde34-91a1-4e67-a70b-99a1beed53f8","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":"1bd11640-574e-45da-8c0c-202fe67b1024","block_type":"box","text":"Ratings.","page_number":185,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"dd297352-91d2-49a2-b76c-cb01fbf3f44b","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":"7eb52996-15ab-45cf-b1b3-473b416ed502","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":"9d3c323e-3075-4d6f-9eb6-92beaa62b8ff","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":"2d720042-2961-4cd1-bb4f-b0c13b9cea60","block_type":"box","text":"obligation ratings.","page_number":185,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"8d0f22b2-57f9-42c6-a748-7e2603d2f66b","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":"c02a204d-df77-4535-a33b-fda4b009e555","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":"1600846b-1d43-465f-82af-5b2e27b25b3f","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":"c600dc21-6139-4b8a-b12a-1f31833e2e29","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":"eb5852ea-c6d1-414f-9463-24fdf9d6a439","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":"8d49ed64-eecb-4930-8c85-c5580a907fa1","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":"e5f330fb-310f-4ba8-a541-fd19ad0f689f","block_type":"box","text":"to foreseeable events.","page_number":185,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"9ccd47cc-e2b7-428b-9276-26b8be16530d","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":"94aea282-66db-42a7-b094-0a3bcde5da70","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":185,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"1198ecae-9924-44ef-a635-ad878af186e6","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":"b5fb052d-4930-4556-bf2d-038c08a8ea8f","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":"504eefdc-0736-4ba7-8b56-4e878f5637b6","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":"7798302a-53d7-412a-a1bb-7ef36ae6e98e","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":"256e55bb-0f32-42fa-beb5-b719fa797d79","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, par ticularly in the event of","page_number":185,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"67389283-7b06-4284-808c-fac2918d5a2f","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":"bbf482cb-d962-43e9-9af9-ea835db7ea59","block_type":"box","text":"flexibility exists that suppor ts the servicing of financial commitments.","page_number":185,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"ed687414-e36a-42df-9fe7-e7544c13c79f","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":"3c25954a-1241-4f2f-b839-b2d22f87659e","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":"4d27d9be-68fd-4ad6-a99d-459d9f245e8e","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":"b9a196f1-a1bd-4cf5-95e6-0b8a7ce73469","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":"4734f49f-4d06-4ddc-a416-b7fc3fe9a68e","block_type":"box","text":"possibility.","page_number":185,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"5931a9a7-b0e8-4b0d-992f-a8821a8e256c","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":"99324416-a42c-42d8-91ea-cb21133deddb","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":"2465cb06-f7e0-4413-a025-ed94127082be","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":"c3da5048-339c-422e-ad32-3c98349dabe7","block_type":"box","text":"A-7","page_number":185,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"77febee3-c91d-483f-812a-24f5d3d58543","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5aaeddcc-ee28-440c-adfc-0946c55100b4","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":"50df7a14-8ebf-47c9-94f4-f9a979e19292","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":"0cfe0618-6f12-4f48-b31e-697fe0f84eb6","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":"676ecfaa-1619-42c2-82e0-d1464b42f0ee","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":"d0658ed4-8887-4e5c-a3bd-4fc422d81786","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":"b76f657c-f89d-4b6a-88f4-4f2f4e14370d","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":"320b811b-29b0-4d20-9296-f5a3503675f8","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":186,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"67107299-da27-42da-81dd-2c7d3f339d01","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":"55eea5ba-0c25-46b3-8e04-d9c22b8d49ee","block_type":"box","text":"relative status within major rating categories.","page_number":186,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"822cf39d-a756-4e94-bf9d-18741815ed89","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":"51a66d74-35c9-4b81-8b39-5f880fc68008","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the shor t-term rating","page_number":186,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"068b134d-0f4c-4c4a-a844-30ca5df5ea05","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":186,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"bad261a6-2d4e-4308-852c-1b800e24fd89","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":"119be7fb-3b22-4e86-9eda-e5c7dcaecfea","block_type":"box","text":"A shor t-term issuer or obligation rating is based in all cases on the shor t-term vulnerability to default of the rated","page_number":186,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"6a99bf01-f7fc-452b-9abc-0791d32eed4f","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":"411c4c0a-50df-4836-8952-b4823b29a86c","block_type":"box","text":"relevant obligation. Shor t-term deposit ratings may be adjusted for loss severity. Shor t-term ratings are assigned to","page_number":186,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"803443fd-b580-4513-833c-468e6edb991e","block_type":"box","text":"obligations whose initial maturity is viewed as “shor t term” based on market convention. Typically, this means up to","page_number":186,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"bf8c4342-7bd8-4bbb-93d5-84d2d18fe79f","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":"5f1f425f-bf8a-4ab1-b810-3621d9567d27","block_type":"box","text":"finance markets.","page_number":186,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"71b2a0e3-1215-490a-82e5-ebd826799b7c","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":186,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"bdbc2604-136c-413e-9b85-82a05b59e57f","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. 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The intrinsic capacity for timely payment of financial commitments is","page_number":186,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"92122f05-6ed5-4899-897c-d2625123c391","block_type":"box","text":"adequate.","page_number":186,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"c533a6f3-5eec-47cc-9b0e-e7a671ed13b0","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. 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with","page_number":191,"box":{"x":69,"y":83,"width":785,"height":11}},{"id":"7b14ae77-ec6b-4858-8be0-c55204db5ed0","block_type":"box","text":"issuers.","page_number":191,"box":{"x":70,"y":98,"width":54,"height":9}},{"id":"f3e99c22-6faa-4eb6-9284-3f195e736b81","block_type":"box","text":"1","page_number":191,"box":{"x":131,"y":94,"width":4,"height":4}},{"id":"6404d0f8-7195-45ad-9cb5-44daf572b2ee","block_type":"box","text":"BAIS works in par tnership with BlackRock’s investment teams, excluding index equity","page_number":191,"box":{"x":141,"y":98,"width":606,"height":11}},{"id":"59d544b3-5b6a-47bc-922f-44c7093f89f6","block_type":"box","text":"2","page_number":191,"box":{"x":747,"y":98,"width":4,"height":4}},{"id":"77bdfeb9-9228-4249-89b8-5ea19d67935e","block_type":"box","text":", providing exper tise","page_number":191,"box":{"x":753,"y":98,"width":143,"height":11}},{"id":"bd294eea-f7f2-40dd-9906-4844a5ad1c07","block_type":"box","text":"on investment stewardship and engaging with companies alongside and on behalf of those teams when appropriate.","page_number":191,"box":{"x":69,"y":113,"width":828,"height":11}},{"id":"2a788e4b-b0eb-4bf1-9554-80b99d436b1e","block_type":"box","text":"The team is responsible for establishing voting guidelines for the active equity platform, providing vote","page_number":191,"box":{"x":68,"y":128,"width":729,"height":11}},{"id":"bdad6912-39ad-4a54-81e8-c80fe71abe07","block_type":"box","text":"recommendations and operationalizing voting decisions. The guidance informs the voting recommendations BAIS","page_number":191,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"71c31dd2-3ddd-44b9-aa3c-9b1eeb4c47e8","block_type":"box","text":"makes to BlackRock’s active por tfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":191,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"1459d400-7fa4-4b5a-8044-3d878d76c96e","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":"90d7c6ce-8dde-444a-855d-94b119168abd","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":"57f11cb2-dd0d-439e-a831-ebc9fe8b9e55","block_type":"box","text":"The guidelines are not prescriptive as active por tfolio managers have discretion as to how they integrate these","page_number":191,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"2b2fc974-9cca-4a4d-a399-b9304d3f7bbe","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. 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The money BlackRock manages is not its own — it","page_number":192,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"9e45427c-4d20-481c-a2e5-de574cb78607","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":192,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"ea58f6de-28c8-4cac-8de9-4189e2229298","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":"3d3110ab-524d-4a7d-bb87-2fa48407f46c","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":"8b054485-c9ab-42f5-86ec-26dd51bbce66","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":"6d749b65-a4d0-4033-9a0b-51064c4e4376","block_type":"box","text":"this work with research, data and analytics.","page_number":192,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"7cb9614c-082a-4a5e-aed1-30cf09e961e5","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":"43a85b1e-beaa-476d-8633-8fa882fa8412","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":"1951928a-1aeb-4466-8513-597c87cc2210","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":192,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"d55926f5-2b83-41b1-b8fc-7042bc29fc88","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":"08327a10-a32c-4a1a-872d-d3b0ab0e3230","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":"6a7141f5-86b0-461f-890a-b8c706509554","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":192,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"4aae6db1-722e-486e-8deb-bfd575922dea","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":192,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"dc8cfed2-547e-45bb-87e0-78333f593271","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":"59485d3c-d4be-436e-931d-edcd9a855fac","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":"1d50595a-8f98-4503-b443-f6e107f87e2f","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":"8c584995-efb2-42d4-95d8-5a4e1e9b490f","block_type":"box","text":"investment analysts and por tfolio 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":"6e2ce173-a685-431b-8777-093f486e2ee9","block_type":"box","text":"shareholder meetings.","page_number":192,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"279229c5-4e66-41f2-8120-166b84fd005c","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":"c8e15103-10d6-4c4f-9240-4e88462e46f3","block_type":"box","text":"investing.","page_number":192,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"a8ebb479-25f9-4a8e-a59c-4db761a86a39","block_type":"box","text":"3","page_number":192,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"e719b0e2-0bd0-4538-acb1-1edefc32cfdf","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":"fa4781b5-dabf-47c5-8b94-6bc9419ea088","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":192,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"63dc85e5-5095-4735-b268-db7afe98dbfb","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":"b6aa8845-61d3-4ca8-95b2-d92d7297f8da","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":"eef23a8d-67b5-4c1e-ab45-180a03e55ab9","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":192,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"aaa17acc-6210-4e13-9d96-a3494ed07121","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":"e72913ac-53c1-49ae-a028-2a08f4b8c2c5","block_type":"box","text":"suppor tive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":192,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"1c6bedba-2106-4e14-acf7-f624684a7d55","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":"037bd45f-8343-4d0c-8f9a-46eff4f02141","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":"798ed810-5f0e-42a8-b172-d4067bc0a4cf","block_type":"box","text":"each por tfolio 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":"a802c2f7-0d7d-479a-9a87-eaf468e40d75","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":192,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"108a8d8a-e735-4b40-beb6-7cb8df230544","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":192,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"c5f69b43-4b77-4136-9b59-5c1a9866adb2","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":192,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"49d91021-6702-41c3-b47e-c4a7ce88f413","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":"7dfdb28e-6086-4d7c-a637-5205a603f7ec","block_type":"box","text":"management teams and board directors","page_number":192,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"3b418555-7590-4f20-94fd-3116f4f09224","block_type":"box","text":"4","page_number":192,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"6e8d7dc6-15b5-46e4-9b89-7626cb6674cb","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":"8e6d3079-efd3-4e5a-bb3d-5162af24211d","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":"12f121be-9b22-4570-be68-bbaf5e68ee8f","block_type":"box","text":"applicable elements of governance that suppor t a company’s ability to manage material risks and oppor tunities and","page_number":192,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"511dd63e-7b83-4512-b65b-dab65ec43fa9","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":"61a07859-eb2d-4795-bbee-de1e5ae37002","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":192,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"775152f6-4623-4b49-bb2f-273e70cf53b9","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":"f41d5ebf-9110-43f6-a374-9b2190c4a016","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":"454f903d-4bc0-47dd-92e6-aff5bf0bee8e","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":"7863d1da-70f6-476e-8cce-0efb755709b2","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":192,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"76c3f270-99ff-4d97-970c-623581b696a6","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":"a0d6f506-5f74-4e71-a010-3a32df993239","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":192,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"7f553384-fa11-4217-b358-19fd3e066297","block_type":"box","text":"suppor t for, or concern about, a company’s per formance. As a fiduciary, BlackRock is legally required to make proxy","page_number":192,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"5d8cd6f1-4273-4040-9ef1-90abad54fb24","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":"76563030-1b4f-4cdb-abe6-a42329a9c7d3","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":"9d8bb94c-791f-4b58-893d-e4a0a4d4feac","block_type":"box","text":"3","page_number":192,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"323af88c-56f3-4af0-aa8a-5971bac4af0e","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":"7f87ca38-8f1e-4507-9396-7e2b64ab665a","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":192,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"8cf80ee5-aef7-4723-a814-584ea023b915","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":192,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"09bf2978-390a-41da-92cb-47e329601feb","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":"cfbaf45b-022d-48c6-9eee-515f77847599","block_type":"box","text":"4","page_number":192,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"417c3a47-5b58-4e68-b344-5493303bfc15","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":"73b5d15f-bc34-4f34-93b3-e303c6d61189","block_type":"box","text":"boards and their members, where relevant.","page_number":192,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"298327db-95e2-4630-bba8-d0066ebd783b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"be16f773-1f80-4e4d-8fd4-09b5ec43699b","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":192,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"248af376-2d04-494c-89fa-6c68c3a27656","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":192,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3e692f75-a8ff-4929-b90e-962a4d9459d3","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":193,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"80574ab9-18eb-49a3-9b06-ebfab20d10e4","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":"ee81c1bb-287d-4548-9ac5-07ed39702ea6","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":"4dbea6a7-f5a6-43b2-8168-fb352d1ccd1e","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":"ade777e8-c07c-43af-91a3-9589964f9aee","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":"b6d7ac7e-cf26-4c3f-adae-1bd32e6fdeaa","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":"686d911e-7189-4df5-aa24-a32d00bc91cc","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":"74723de2-12d7-443c-b67b-775a06baf590","block_type":"box","text":"5","page_number":193,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"98fd18ad-4108-404c-9be9-970f861b23ac","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":193,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"d384809f-43a0-4df1-852c-ae86f3c4a4fa","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":"972cee51-8f43-4922-a59c-6550312a3a39","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":193,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"d1ac29a6-4060-4db8-a839-878d195fef9e","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":193,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"b16fd3a1-facd-4492-a6af-017e8e5a17ea","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":"b8e49d4b-6cc3-448c-9eb2-7c0f9486fee9","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":"a70fbf41-cba7-4f03-be50-ac71dcfcbdb7","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":"8b0f6822-3a10-43dd-b336-6fe1f79285a6","block_type":"box","text":"5","page_number":193,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"75039913-a86b-473e-b128-66c8f3b6e678","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":"af658ba4-8f98-4957-9ef8-0caff1fbe149","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":"0f664454-d75f-4120-a687-9193771f35c0","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":"63a9e5e0-fbbf-474b-81fb-c299748a39c4","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"aaa1bef1-cf37-4c6f-b339-d6c1b1fe524c","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":193,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"8c19ea5f-a782-4953-807d-f0102d5f0a96","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":193,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1fa30040-b8cc-451a-8032-a0bf22386552","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":194,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"4efccd43-5571-495b-b17f-bb7be6a45bda","block_type":"box","text":"Roles and responsibilities","page_number":194,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"86347640-f012-402e-8446-5f7c0a45700b","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":"2af808dc-688d-4645-bb17-53eebc5dc565","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":"0a7dd6e9-4e16-4898-a72d-e568360b22d2","block_type":"box","text":"6","page_number":194,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"6fc20fe1-a6f6-4994-aa88-880992a8ff26","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":"2f0eae33-6223-474a-a589-92a36d0af87f","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":"caa8f358-ffe0-471a-a3db-6e79885db69f","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":"b27db8c1-90ef-4553-b0b8-e98605cb498b","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":"884a4cec-0146-4f6b-986e-508ad286323e","block_type":"box","text":"per formance over time.","page_number":194,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"3e9fa791-4c84-4fdb-87cd-9372635e461f","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":"8f0db7b1-63e0-4f04-8438-ce8109b3ab6e","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":"c23b12eb-da30-4b70-8262-2cb0d29450d9","block_type":"box","text":"One of the most impor tant responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":194,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"283795c8-6d70-4a2d-865c-cb5cb15e7193","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the per formance of the CEO","page_number":194,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"aace0a5d-10a9-46cd-a31e-7c066f6a874b","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":"35035232-4cea-4166-a623-f1a10b603e44","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":"9720a082-99bf-4f2d-8093-e6984925e70d","block_type":"box","text":"Composition and effectiveness","page_number":194,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"5018faf9-8df2-4b53-b97c-b77c16099587","block_type":"box","text":"Appointment process","page_number":194,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"21c781c2-4c75-4871-aecb-960a1b62aac1","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":"159cd7d1-9909-4944-81a9-81c852605ed2","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":"395d5d54-c58d-47bb-92e2-f6de7f1d3c8b","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":"ece9962c-74ff-4d98-a10f-15340f954972","block_type":"box","text":"e.g.","page_number":194,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"c657e5f0-9764-40a9-a70f-b15dd1269cf6","block_type":"box","text":", sector, maturity, geographic","page_number":194,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"8cac8210-ea65-4326-ad61-b75c68c128ba","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":"4a7a7b0c-72a1-422b-aa31-6747c53c4deb","block_type":"box","text":"e.g.","page_number":194,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"fb5b2660-b539-4abb-a9ff-97a85917f05e","block_type":"box","text":", financial exper tise, industry track record). To","page_number":194,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"f03c9c5b-4087-4602-ab37-5a9ac0260857","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":"a11bd2c1-7e3f-4aaf-b3a8-755f1a61a835","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":"8cba6cf5-e25f-4a0f-9cd3-a7e0d8e6a1fc","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":"872c6a9a-000f-4cbc-b8a4-66fcb496318c","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":"2764b9e2-525d-44a8-88f5-c6f01c0ddc13","block_type":"box","text":"and local market requirements.","page_number":194,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"b2e52aee-3e29-40b3-ae5a-3f3aa28f8d6c","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any par ticular board","page_number":194,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"df1055a6-1421-4f4a-97ca-42a53d2ef2c4","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":"f5fb7f06-bf50-4325-a975-4d6d265d5f1a","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":"3f09e7a0-1518-4375-a8f9-2e15ba1277a3","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":"ae19f83e-282a-4cf6-8a9a-7d73906761b5","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":194,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"cba2bf6a-cfad-49a9-af26-8e0f6faeb000","block_type":"box","text":"per formance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":194,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"3e372d7c-9ca8-4372-ba7b-bd891b474d1c","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":"6bd9620b-b65f-4ed1-accc-31f7527cac7e","block_type":"box","text":"Independence","page_number":194,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"38e7dc4b-ea9a-4c8a-873c-416691243682","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":"7456af5e-233e-49de-b003-10ce6bb65781","block_type":"box","text":"e.g.","page_number":194,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"34565162-e033-40a8-a495-725f03f5adfe","block_type":"box","text":", government or","page_number":194,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"006af222-1445-40ab-af4b-018eadd497a6","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":194,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"678a16da-49ef-4b2c-bb31-379a84dbcd07","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":"8fabedef-fb02-44c2-9185-740d78b70147","block_type":"box","text":"conflicts of interest or undue influence.","page_number":194,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"e56dca20-7e27-4a61-b1b6-12da9afca81b","block_type":"box","text":"7","page_number":194,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"32c55691-6444-458c-9638-f94b49078b5a","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":"0d3f5919-f726-4894-bcdf-f72d5306a9c9","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":"9954fa82-02e7-4ad4-b28b-066edad6c17d","block_type":"box","text":"independence should meet those local requirements.","page_number":194,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"7a95f538-d82e-4824-9072-8fb247e5bc99","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":"a7f1a767-6753-4297-9023-b2b80dacf859","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":"42715d69-1404-43a0-8a65-e13f14b36ce9","block_type":"box","text":"composition if this is a perennial issue.","page_number":194,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"216d0fdb-d13d-4567-bad2-a74e0f1e7f42","block_type":"box","text":"6","page_number":194,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"38617c20-efbc-4c81-98cc-5139249039f3","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":"76cd8ee2-50ff-4841-ace5-b7030aba20dd","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":"e33ce449-5735-47c4-87e1-bde5ada82218","block_type":"box","text":"7","page_number":194,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"ac2081b5-3f81-46d7-841d-c8304eb22c85","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":"41eeb489-bbac-4ea4-9a3d-6d6717c403d7","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":"218fce04-63fe-4ce7-83ca-3102df9e90bf","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":"e72ddaee-dbc9-4bef-bf08-5fbaeb6b8ac0","block_type":"box","text":"could, or could reasonably be perceived to, materially inter fere with a director’s ability to act in the best interests","page_number":194,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"0e7986c6-3073-4bda-a71b-6a304f456966","block_type":"box","text":"of the company and shareholders.","page_number":194,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"633ad9b8-533a-4569-a41d-672b74c3aa51","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e7609b30-9f3d-4c1f-8c28-8787d6083b39","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":194,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"5258f9f1-f5ca-4e2a-8277-be48d2bbe984","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":194,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cad0c081-492a-48d7-8ec9-401d17e6ab4c","block_type":"box","text":"Independent board leadership","page_number":195,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"f6414786-f390-4adc-a868-ec10f612c902","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":"c2f84207-4378-4628-b108-fefcbd3bef89","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":"978e9b7d-a14a-4e6a-9ca1-3b4dc55a647a","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":"b4ec41bd-dea6-4f1c-accc-1068e8b446f8","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":"1b03bf70-fbd1-4e22-a9f4-059801ed4848","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":"6296c4c2-e27c-4e82-bf99-d44a297502e3","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":"4ffbec84-aff9-4f2a-b1b6-4ea5f42031b2","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":"f5925bfa-7828-4178-9428-68d73ee55144","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":195,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"5c037439-f008-4a2c-a60c-6e100b98f23c","block_type":"box","text":"how it serves the interests of shareholders.","page_number":195,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"e6a7e426-efca-42db-8972-ef037ba12485","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":"c99862f1-031b-44b2-aa1a-adf7849dc7f3","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":195,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"ecfd3339-acc4-4eaa-9512-e3e39bec51bf","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":"b11dce9d-8283-40b3-b488-0af616cc3f1b","block_type":"box","text":"Tenure and succession","page_number":195,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"31eb3d95-5d25-4c2d-ad0e-ed57447d42a2","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":"34b648d4-93b1-4308-8e4d-f39ed0c3091d","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":"3dc3822a-efb4-4bf5-8385-53fa2a73d281","block_type":"box","text":"director tenure par ticularly 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":"525fff51-350e-4a18-88c3-5819a27c0cdd","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":"47ecf495-b7c1-4be9-b7c3-13c005e0ed80","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":"ab9f505a-70e1-4d49-8f7d-23d2bdb69609","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":"e50c0f23-7920-46f7-b667-58c196e79b1e","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":195,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"edc5ebcf-766a-47d8-ae5b-b3428821edfa","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":"0e358c0b-c6d2-4b0a-a2a7-220e679c13ef","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":"31b5d857-330d-48bc-b027-18f90cb96e01","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":"8299d0a1-9eb5-420c-9431-49b0685801b9","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":"8ddc0172-2ca9-49a5-afec-8b522cf1f923","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":"c26058f6-b724-4b9f-b250-998472e70c6e","block_type":"box","text":"for their continued service is not evident.","page_number":195,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"7adbd85d-944a-43d2-a6f9-745afa632c0e","block_type":"box","text":"Capacity","page_number":195,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"961994a4-ff67-4d9a-8c60-c068ba3b5a5b","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":"19ca9c69-2d17-4cb1-b247-b854a767c834","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":"8a4db0b2-4871-4400-a7f3-ee4072f91851","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":"c85b8065-167a-4c95-ace3-5a473f9e485b","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":"4a399f84-8ed5-4230-9063-6f7a8af4069b","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":"9c1dbb3f-d922-4b45-b88f-7c021dd3bef8","block_type":"box","text":"determinations across markets.","page_number":195,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"8fcd4b31-fd91-4e6e-bdd5-d944a130c9c2","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":"a88964bc-ba0f-4686-b258-9b0f7300299d","block_type":"box","text":"their duties to the board and company.","page_number":195,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"db014732-47af-4480-a614-5ea5d3c22aa5","block_type":"box","text":"Director elections","page_number":195,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"7032f650-b3e0-4b86-b51c-7469e78c4f61","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":195,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"f8b1b5bf-afc3-40db-9508-a8730bb461ca","block_type":"box","text":"structure","page_number":195,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"59a6ece3-d425-4855-a3d1-166a81c425a1","block_type":"box","text":"8","page_number":195,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"d6ab9826-dbed-49c2-b239-f45bbf8d1aea","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":"1e4a5dca-9792-4fa2-94ed-e5dc250a9657","block_type":"box","text":"basis of its business model (","page_number":195,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"8bcb4171-3838-4e62-9e18-12293677b8c7","block_type":"box","text":"e.g.","page_number":195,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"42acc459-eaad-499a-9e7a-2df601a08658","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":"4ccceb56-a06a-4085-947d-89cee3058506","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":195,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"ebddd6ad-fb42-47aa-a466-1beb6efa7939","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":"eed35468-075a-455f-8c98-924ab57151c6","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":195,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"1197f4af-a383-424a-a38a-ce5a8cfaa1df","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":"1d1f7313-289b-4c08-97c0-29f99c1daa0f","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":"3206bb28-10b2-4336-a273-100894613a2a","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":"a6142be7-2bd1-4bbd-9d08-64561f4a2271","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":"3e9283a6-9dfe-49f5-a342-152fdd3f240f","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":"76c43b5d-7909-4aff-a96a-8884255e1946","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":"dd469233-5ffb-4c49-8d88-d005b7707f06","block_type":"box","text":"par t of a single slate if we have concerns about the profile or per formance of an individual director.","page_number":195,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"3cc497fc-f070-4d76-a6bf-654790010f89","block_type":"box","text":"8","page_number":195,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"8abe0a26-4489-4728-b292-b8e6031c3ab8","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":"be034c9f-7d89-4c7c-99c4-1436efe9a47c","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":"1d642836-8dd7-4d67-856c-9eca988664a5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"6517fb2b-94b9-4615-9125-cbca9ab69cd9","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":195,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"dad40723-76ec-4b12-a7e0-2913fc84f856","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":195,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0d4a399d-006e-43ec-9b98-d8ab941dbfe3","block_type":"box","text":"Committees","page_number":196,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"6a1941d9-4d43-42e9-a6a1-f4e736d0348c","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":"f8ccf9c9-f78c-40cd-a694-f5974d0d0cdd","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":"7feff1b4-461b-4f48-8a2d-22e44a88278e","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":"98a53fa5-b88d-4e6c-b867-9d167e2d7645","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":"dddcee66-f773-46eb-be72-150d3f625c17","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":"ba0f9360-833c-4fa6-afdd-65066ab316e3","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":"4626f4fe-7672-41aa-8f60-7fcc7a0b2c5c","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":196,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"5e7abcbf-c478-47d9-aa7c-ffa6ab6421f1","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":"7ab94767-4a04-4113-bfbd-0d62b968eb33","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"e1d3c0ac-8dce-427a-9d56-c2d23fa6635b","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":196,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"1e1b9319-438b-419b-b53d-6ce9b5749d15","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":"ae5aaae0-5c29-4584-a6eb-2d71bd88d156","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":196,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"e49f87d3-da12-41ec-82b4-1a76b50de7f8","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"1ba3ca79-ce22-4ecf-993f-412b92a492de","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":"8be782b6-1002-43b1-b514-55636ef7e2c9","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":196,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"c673c52d-ece2-4cad-bf94-48c1c579310b","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":"644117d5-a9a2-48b7-bc96-bba207472e06","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":"291d2f4a-658a-4ec1-956c-e009518338dd","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"10fc7794-e80c-4855-adf5-f4cf929d1efe","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":"cab74e37-d217-45b6-93f2-382524833aae","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":"2da6e187-2def-42ec-b0e6-2374ef02fc25","block_type":"box","text":"firm-wide compensation policies.","page_number":196,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"1b2d38ad-9825-4149-ad3b-b28746855b0c","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":"8a421322-e058-451f-90d6-aa4453129ec4","block_type":"box","text":"to convey concerns about how a committee has under taken its responsibilities. We may vote against the election of","page_number":196,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"81400420-8158-4707-bded-dd3821d4feca","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":"987e55be-d260-4824-8769-e468c11b8234","block_type":"box","text":"Board and director evaluation","page_number":196,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"88e583d3-f01c-4e0b-926e-35dbb80def4f","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the per formance of the board, the","page_number":196,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"cde63260-d8f0-425f-82c1-2ec516288976","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":196,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"55cf608b-d672-4984-a8fe-346c7827a975","block_type":"box","text":"par ty able to bring objective perspectives to the board on governance and per formance. We encourage companies to","page_number":196,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"58752185-9b46-43e7-8a99-dd397a9299fd","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":"eac8fb90-9f1c-4ada-9468-f396cdbdb236","block_type":"box","text":"a result.","page_number":196,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"f9b2f0aa-ac5a-4649-a735-075ba0ce64b3","block_type":"box","text":"Access to independent advice","page_number":196,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"27fd1a7b-4b42-4dca-ac21-9cc1fb59a896","block_type":"box","text":"To suppor t 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":"979c88ed-d259-4c6e-b9ee-9367dfceb4d5","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":196,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"c386718d-8427-47b2-80ed-d05120dfe8b8","block_type":"box","text":"par ties 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":"3456855a-c34c-4483-bcec-adda0b5fb119","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":"a7641753-279d-46b5-a565-61111fa9a5cf","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":196,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"0a6c8d03-70d0-4b35-820f-2f2f3436d01d","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":"54697267-85c6-48ec-b129-d407287bc555","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":196,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"0e70a94c-2cc1-4788-81db-7426ed0f803e","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":196,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"94a135aa-1221-4635-927e-7cbfbbba91c4","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":"d6ce6edf-64b9-4526-9f32-3974cdb1cb11","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":"37b986fb-5cc4-499b-a05b-9c674af6cb3b","block_type":"box","text":"per formance.","page_number":196,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"4d6ca11c-2a0f-4ef3-89c2-c5e98c3fe008","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":"b41a1ded-a30e-4aeb-a644-49d1cf3da4ab","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":196,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"ec94d058-248c-4424-aef1-f35df7248bed","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":"8e333b44-796c-4d9c-956e-e43e2380bd6f","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":"eccecf1f-97bc-4931-a1e2-c2a3c41bd1b1","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":"488fcf85-ead7-471c-9ed2-0dfb654bc273","block_type":"box","text":"recruit and motivate.","page_number":196,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"2358b45c-7cf1-4e36-a855-f5be2bf8cea3","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":196,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"7d1c91df-b884-4875-a234-c426960e68ed","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":"0c696ec2-06d3-48b1-932b-f2a9b0d5b9cd","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":"2e3e2a49-2039-4499-a254-8a073513d659","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":"43e710d0-154f-4f0e-a2dd-597dcaa73d89","block_type":"box","text":"arrangements include:","page_number":196,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"1a7dae2a-83e7-428c-a28f-c13347c62427","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"c057cc49-029b-44ec-9ddc-5c2bb76f24b9","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":"a3ec2eb4-7ae8-4fa8-a6e2-90743792f80c","block_type":"box","text":"the company’s size, sector and market.","page_number":196,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"f30e7bfa-e9de-4a7a-b43b-aad37c582e9a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"eeb62ce3-383d-46a8-8c88-ea221abdb32e","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":196,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"b3029b8f-5ad3-47f3-b58f-c4d4f58db76e","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":196,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e8c017cf-bd9a-4c2e-aa42-d9c38b9b3657","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"1dfadaed-ad68-473b-9687-ac78bdbd3bd5","block_type":"box","text":"Variable pay subject to per formance metrics that are closely linked to the company’s shor t- and long-term","page_number":197,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"6ffdeef3-cc22-49f9-ae9d-7d22cebe00ac","block_type":"box","text":"strategic objectives.","page_number":197,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"6345c4a9-8e79-44b4-8022-6bd84cd63131","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"a9ac857d-0cd5-4d45-9af9-3c227b18b0f2","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":197,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"d589f2a8-5961-4102-a2fa-fffc8a302627","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"1286f49f-35df-4b2b-be5e-ca744129999d","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":197,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"f1594232-c905-4d79-81b0-76aec1e6b010","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":"767995d8-7e28-4549-97c5-00c06edc13ec","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"6511c95d-859f-4a51-8deb-6a268a4f4a8f","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":"c5561505-0d8a-4fcf-914d-b71e9b6c18f6","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"808870f4-b2c3-4329-a5ae-6c1468f20226","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":"e9cf9946-5ba3-41e3-bf10-8310c9e94717","block_type":"box","text":"transparently.","page_number":197,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"4c83ed19-11f6-4189-abaa-eb45592cc9b9","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"9654712b-01d4-4e25-b6f5-5c2a6f29c5f7","block_type":"box","text":"A requirement, that par ticipants 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":"08a02720-d26a-41c5-8c67-d30d386fdfe7","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":"f62c7c3c-ce19-4b75-9059-4b22579cca36","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"15f91357-2084-4933-ac25-9a593f90802b","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":"76dbdfd0-b637-4940-93dc-29cc2c63de25","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"94572708-2c79-4206-aeb1-1e4c316f1e97","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":"15ca82ae-f772-49ae-97fa-ccad3001cc10","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":197,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"76c68ddc-24b3-4cbe-9aa2-f5fabf848fab","block_type":"box","text":"misconduct.","page_number":197,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"9bfb9d08-3c0f-4d13-968e-536847fbed0e","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"3b7969e9-3950-4375-b9fb-2f83520cef3b","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":"8e54c70d-1632-427e-93b1-85c390c2e45d","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":"0ab729a8-81a1-4de1-a815-f822fa2887ac","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":197,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"be420f57-c345-4a3c-9f77-70f24d99829c","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":"bed270f7-b0fb-4d0a-9c60-9813af422bea","block_type":"box","text":"compensation misaligned with per formance, 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":"2029cea5-5c37-4fca-af8e-db7f41465d68","block_type":"box","text":"committee, or the most senior independent director.","page_number":197,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"853105fe-ea5b-4b77-8296-9cbd053d8554","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":197,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"c9c3ba13-8f25-4411-9235-3e6f4c1ef3f1","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":"f8d26840-2a3c-45e0-b301-86eb5cef0f02","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":"4127d6f1-250d-4415-936b-5469c019ff6c","block_type":"box","text":"do not suppor t non-executive directors par ticipating in per formance-based incentive plans as doing so may create a","page_number":197,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"7e8c950f-f2ad-4ca1-889f-e51bc1c7a6c4","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":"2220e251-4768-44e2-8672-c363762f62fe","block_type":"box","text":"CAPITAL STRUCTURE","page_number":197,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"8abdde60-7ced-42b3-96a8-67402a5e7ba5","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":"b22c70fb-58c3-4057-8a0f-792b8b19b536","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":197,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"7a090307-965e-4b41-927e-f63afe143390","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":"970bfa63-c39c-4b7e-80d9-7c1315facf91","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":"85bce27a-c229-4523-a17b-a1b32620789a","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":"c0f250ba-496d-4cdd-873e-0548a7deec18","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":197,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"dd81f2a4-092c-41da-a820-119a022db6ca","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":"1c89ad53-b2a9-42af-b36b-f355b2a4b3c3","block_type":"box","text":"Share issuance","page_number":197,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"58e6300e-3b89-48ff-9be5-cf4771bebc8f","block_type":"box","text":"We assess requests for share issuance for par ticular transactions on a case-by-case basis. We will generally","page_number":197,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"0a6e2034-b07c-481d-8587-58e9f059e869","block_type":"box","text":"suppor t authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":197,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"1ccb33bd-c02c-4f72-8906-dc7a214d6677","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":"f58ea6f7-7b9a-44a3-b82f-214c153917dc","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":"30b0529e-e839-469d-8687-9ee5625ab941","block_type":"box","text":"market environment.","page_number":197,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"fb98cadf-01b1-4752-82ad-91e7f87bfc6f","block_type":"box","text":"Share buybacks","page_number":197,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"fdb898e6-9fcd-426d-8e91-c0546ac18925","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":"4d18cfd1-d1e3-41bf-8013-47cc2fcc2efb","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":197,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"175e9a65-39fe-4cc0-9083-2d37baa119bb","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":"6ea5fc71-bc8c-49fe-a0cf-7bda307f1e6b","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":"74c76fb9-7243-4475-ac12-eee13cb58d4d","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":"211bd6a0-0ed7-4559-b01a-8fe6d1e96fbe","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":"cec2d7aa-8444-433c-bb66-d03e8cb867ec","block_type":"box","text":"of the company and the market environment.","page_number":197,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"aa50b5f4-8f6f-416e-9be6-4dfa0803377c","block_type":"box","text":"Dividends","page_number":197,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"84f9bfac-705d-454f-b3e8-f9fe6227343c","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek fur ther clarification","page_number":197,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"adc24c79-9dcb-43ee-828c-f9ad9025235b","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":"cd779bdd-536d-453f-a2fc-cbfa7de9fd1a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e42528ec-3f45-428c-b0ad-522c029278ec","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":197,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"294e3306-c8c7-4c0f-8c75-b8b48c58476b","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d991a715-1bcb-40ad-818b-c749fe409168","block_type":"box","text":"Differentiated voting rights","page_number":198,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"53bf7cae-a09e-4186-b710-10a8b2f4b3f9","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":"75a24adb-43dd-4309-bc91-46227a9e1bdf","block_type":"box","text":"exposure. Cer tain companies, par ticularly 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":"5d77357a-cbcf-4458-a817-a78618d6844b","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":"0de42518-d37b-4a9e-88f2-5a3626bd4df9","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":"586ef5d6-6e2e-4293-959d-eb6c2bcfc9bb","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":198,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"edd3ce0e-14c5-43fb-8085-4e410afdc4dd","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":198,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"50fe202b-a5d5-4a12-a45a-11f9b1189190","block_type":"box","text":"analyses of proposals.","page_number":198,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"4fae24ca-1f2a-4288-a21b-3b245b45e0c8","block_type":"box","text":"Mergers and acquisitions","page_number":198,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"2fa59ec1-2de3-433e-a710-649392f06954","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":"d82f1d62-b0bf-4ee9-b6f3-b50c60d32b2e","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":"babc24e3-548d-4990-841b-ea0eed6282ce","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":"06b64f0c-5d7c-4ed9-8209-6cab774bcdc6","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":"6b9d58dd-46c9-4488-8487-fbaa487b44ce","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":198,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"c2b79e8c-e4e9-44f7-ae8c-2e4f47ab4e7a","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":198,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"a18e3ff6-7292-41b4-b5e6-1c0157f461d0","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":"4a1d0468-5b57-46b3-8fb0-fb4116bd5eef","block_type":"box","text":"Anti-takeover defenses","page_number":198,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"95bda563-1c22-40a0-b6c8-5e5ca305c4b9","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":198,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"364ec02f-9018-4168-919b-9626fc060946","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":"fdc721cf-40bd-44d4-a93b-929b94c27e15","block_type":"box","text":"shareholder value. By exception, a poison pill may be suppor ted if its purpose is to delay a takeover that is","page_number":198,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"e2f871e4-05c6-4244-a39a-16eaefd611d9","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":"2ca01fa0-df2a-4f27-98f0-705894882377","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":"1ddc6633-8a53-4854-becd-e6c71e97974c","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":"3d7c42b4-c943-4aed-9420-9942759c66cc","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":"8d82f0d2-8945-4574-a8f0-cfa8fd271c61","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":"5aae320f-e701-490c-9c3d-95839eabd9ce","block_type":"box","text":"Shareholder activism","page_number":198,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"9044aaab-d8ba-4b30-ab7d-bdede654066e","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":"d45d749b-4f51-4417-97c9-9876a6644b24","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":"e8c4af9b-3d4e-4f0b-a444-a48d440a5d98","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":"b9c66cb9-b050-461b-9a52-af3ffb0d0914","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":"a16cbde9-c8ad-4355-8eae-89348c405589","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each par ty’s candidates. We evaluate","page_number":198,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"f65a492c-b695-4160-bd24-01850c376d37","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":"98cc5008-af59-433c-9ff8-39572b9c9b99","block_type":"box","text":"We may suppor t 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":"3bb4839a-53b7-4ff9-8069-19029ff15938","block_type":"box","text":"the relevant por tfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":198,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"fd43bb34-d245-429d-8882-98e16e571d25","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and exper tise or have a poor track record of","page_number":198,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"997b9bed-04f3-45a7-b650-0b0ddd29dc05","block_type":"box","text":"protecting shareholders’ interests.","page_number":198,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"dd4b99d1-d7ca-4f63-b962-ec33163da573","block_type":"box","text":"Significant shareholders and related party transactions","page_number":198,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"21dbed35-b546-49f0-937e-480457b09f68","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":"a0b8b06c-6734-40c1-90b0-1ccadce27d2d","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":198,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"3ab89d7d-d346-4c13-8837-51f958df2ee9","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":198,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"2ee2e58a-4fce-4e3d-ba8e-2787eb793fbc","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":"466a177d-c2a7-45ee-804d-34ddc6150b78","block_type":"box","text":"have been agreed with a non-related par ty. In our view, such transactions should be reviewed and approved by the","page_number":198,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"aa904b64-6259-4c86-8c48-63e91d719ae6","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":"7e54014e-0065-45d1-b101-ef109476cd26","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":198,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"e952f77f-2045-4707-9c1e-9846df4fec4d","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":198,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"3f06d845-c1e5-4f6e-a36c-580755d2e18b","block_type":"box","text":"implementation and financial per formance, 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":"f295b855-7c3c-4153-b5c3-381dc5fe7ac0","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":"70d11e3c-0f11-4420-822f-58b472b2fa5c","block_type":"box","text":"oversee corporate repor ting 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":"23d00af2-71be-47f7-9c83-7217e42265e4","block_type":"box","text":"audit.","page_number":198,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"d162c815-7531-41f7-9bd7-538f6c61a263","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":198,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"aef695d8-c23d-400b-8541-dee01cec16b8","block_type":"box","text":"on its financial per formance and position. It should provide an accurate and balanced assessment of the risks and","page_number":198,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"e1c5480e-ab45-4a2a-a774-5088c437dab1","block_type":"box","text":"oppor tunities 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":"2478332e-db23-4fae-a0b5-c8581c9eb8a2","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"73429ac8-dcb0-4d55-a706-deab4a0d5ed7","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":198,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"c863987f-3596-49cc-a872-af3770ab0fbc","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c99249a4-5a6f-4646-97c6-1b3ee13c3686","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":"7f842c7e-71b9-43f8-a03e-e7d086b55143","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":199,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"fa379130-8af0-4f47-b562-0df1c746ef69","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":"e26c0c23-0919-4a66-8331-21f3e138755f","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":"51295efc-7990-4f03-9053-c809d3910817","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial repor ting system by providing","page_number":199,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"2d709f80-b06e-4fad-93f5-c0b8ace7e732","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":"78f3c806-0b04-49ca-9963-b08880738dd9","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":"14b4c3e7-a052-4a94-bbd8-98df487a6fd6","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":"f94f0451-d910-4861-8f65-a4860929a6f0","block_type":"box","text":"impor tant 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":"540779a0-d929-4cf9-805b-0920edca0573","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":"2b3b58e2-2862-4667-b770-89616b6d50a7","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":"f3a54da1-71d0-45b7-8404-c397dfa1de9c","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":"395c3625-96d2-41fb-86a5-d939088285eb","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":199,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"a8722a1b-9c04-468d-8715-16a6368b3db8","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":199,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"1c3d6939-0700-4634-911f-0dbc65e5fdf3","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":199,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"cf9998da-1269-4b92-8e1d-0a8de841f800","block_type":"box","text":"9","page_number":199,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"9ad472ed-9d2c-4be8-92bd-078670395be9","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":"65b7980b-4fd6-4a3e-a30a-bfeba9529922","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":199,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"156b1c51-2e66-41c1-bf0c-0be74ed0a7d4","block_type":"box","text":"standards specified by policy makers.","page_number":199,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"6ae55f5c-a52b-4991-85e7-a596169fd6c7","block_type":"box","text":"10","page_number":199,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"d512dc44-774f-4a6f-ac76-f20aa7bfdbec","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":"87930aa3-4451-4dcf-8480-e87a8f067b95","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":"8dc2a65c-c06e-454d-98a3-048f95ef979f","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":"898ae45c-3140-49a1-8fe5-0fc9e48e9421","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":"ea10032f-7e05-491f-b316-f0f94776aff0","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":"500c5613-053c-4169-b757-f30dca01c3b5","block_type":"box","text":"of corporate repor ting. It is helpful when the audit repor t gives some insight into the scope and focus of the audit, as","page_number":199,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"9c023959-4795-4334-b3ae-c56b6272fc70","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":"6a006714-9d4c-44ee-a8c0-09c7644092de","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":"cd4244e1-6c6c-46f9-8721-98d50b1d9584","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":"cdee001c-4cca-49dc-8af6-b9ff5da0449b","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":"65935f9f-2715-458c-b370-beed9c168f98","block_type":"box","text":"remained independent.","page_number":199,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"ed91fd1e-f161-460c-aad2-86e5e11cafdb","block_type":"box","text":"We may vote against the election of the responsible directors if corporate repor ting is insufficient or there are","page_number":199,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"ec4c5d36-f159-4185-947e-f435ce95ce84","block_type":"box","text":"material misstatements in financial repor ts. 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":"8c79fc83-42f9-44d2-971b-422d353066f4","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":"cd358325-4b9d-40a8-ad15-23a9fbbe0e39","block_type":"box","text":"repor ting or the audit. We may vote against proposals to appoint the auditor, ratify the audit repor t, or approve the","page_number":199,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"03ee1311-3bd9-4aac-bcc1-04b80392644b","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":"ceabf175-8005-4a20-93fc-ced4fcc2b814","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":199,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"6f0e5770-889d-4762-92d5-0c15d2bc9665","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":199,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"7d774033-d8ed-47a2-8049-b267710303aa","block_type":"box","text":"General shareholder meetings","page_number":199,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"836cd666-7555-41eb-9931-afa7deca4890","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":"8a58ea94-7c35-493c-9e2e-7324d7299b37","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":"0b7681c7-851b-438f-b385-9969205c4dfb","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":"f10f07f1-02b2-4078-b898-9a5cb3a6af7c","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":199,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"ae17d330-5fae-4ea9-9ef5-a7d7d866c34f","block_type":"box","text":"meeting vir tually which, whilst welcome, should not limit the rights of shareholders to par ticipate as they would during","page_number":199,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"6732ad05-7e9a-4def-b657-64510caa2705","block_type":"box","text":"an in-person meeting.","page_number":199,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"c582c8f3-7e0e-499e-8c59-eda959d9fd4d","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":"83640873-5157-4aec-9721-3827749ac928","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":"bcf876b4-af2e-42c2-8ab7-f315522838d0","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":"9460535a-2313-4cb9-bdad-204a3b6f9847","block_type":"box","text":"par ticipation.","page_number":199,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"b003e269-9afe-4a53-a76f-15c2ea5797fd","block_type":"box","text":"9","page_number":199,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"e78e9ef8-bc4c-4ee6-b9a6-5f91d7b9e5d3","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":199,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"b92b3275-c35d-4339-ac1d-c6e16cc68b50","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":"4ee527b4-5001-485c-a143-f462e3366970","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":"e7031ee1-f674-4c23-96a0-38706cc47394","block_type":"box","text":"Disclosures.”","page_number":199,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"553c5cd7-2429-44ab-b067-513eb9c4e6b8","block_type":"box","text":"10","page_number":199,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"24df76f0-2d9a-4d7b-bb4b-d4ae1d1fb926","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":"b2e0e9c0-d557-4c3c-9703-c35e2e080993","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyrepor ting\r\nandaditing/companrepor ting/corporatesstainabilitrepor tingen","page_number":199,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"fafa4f74-318e-46b0-842c-77e493b787f2","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":199,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"913ac9ac-b0b1-499e-9c78-573895ea38e0","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"d4934725-af1f-48f0-a62d-33562138ad34","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":199,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"c2253465-97da-414b-a173-a27314353157","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"004d528d-2feb-4d6e-9eb9-ea29c595bd5b","block_type":"box","text":"Bylaw amendments","page_number":200,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"3ee253bc-e26e-4919-8433-d17beba54c38","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":200,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"5482897e-0948-408a-b054-4b70951aa5db","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":"91cbb18d-0560-4053-a31d-e6b8b3740031","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":"ff79212a-e537-4956-aaf7-096d10bf95d4","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":"1bc1e0c7-c830-4a69-8b42-c5b1315b9ce8","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":"7ec11676-f583-4255-bb54-a5ec9665a722","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":"0317f46b-37ca-4b7b-9c37-34de2e707bc2","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":"c35cd4ac-2873-4c3c-a844-066335bcd0fc","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":"382cf289-63e4-4606-9f1f-49aeb60b5caf","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":"86d22e2f-38a0-41b7-94c1-6cff68df4587","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":"e8c5c9f7-c629-4cf9-9827-f7bc0f0636c5","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":"2c15a5ff-aadc-4f1a-8346-9a8fa4cdf3e1","block_type":"box","text":"nomination process.","page_number":200,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"20c6a5ee-5352-4f66-9d98-9c7533ec7c4c","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":200,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"0c58d922-4d53-4460-bdfd-3973edd0f7c9","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":"c5429fec-294d-4234-a541-615fa4b32057","block_type":"box","text":"Change of domicile","page_number":200,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"33d3dc20-1e70-4105-b622-06a985e62557","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":"be978c05-a650-4d96-80c8-be231fdbcdf3","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":"1f096d60-af2c-4270-a676-1e50bc59a551","block_type":"box","text":"immaterial.","page_number":200,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"31e285db-aca4-45be-9549-637609b28049","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":"37420a1f-3b9a-4a53-9e0d-f8b3562ab3d9","block_type":"box","text":"with our clients’ financial interests.","page_number":200,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"a3b7f485-5ab2-42a6-bc6e-8c5213ffb98a","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":"a82e71db-14be-4d7e-8b3d-03417ac4ee73","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":"97394c7f-eab5-431a-b8e1-99094d12fdaf","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":"733cf94b-dc4f-44c3-907c-5f02aefc37f4","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":200,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"3ce8b2b1-1fd2-49be-8b3b-242de001fc7e","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":"ad1f69e9-79b8-4070-918b-a49c7fd50a7a","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":"891825bd-e286-45e9-912c-7fe2f40fcdc0","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":200,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"e2cd42cd-6282-460a-a1cb-a1895372cb03","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":200,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"f5e60434-f497-4fa2-a929-99986297ea53","block_type":"box","text":"general shareholder meeting asking a company to take a par ticular course of action subject to the proposal being","page_number":200,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"3774a598-6ad1-437c-9304-ab0615232b96","block_type":"box","text":"suppor ted by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":200,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"eff354e4-72a0-408b-bc5f-23f6b4fea958","block_type":"box","text":"relevant to a company’s business.","page_number":200,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"a40d6a1d-0306-4a14-b8e2-40b3ec101bad","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":"38354ce5-941d-4d5f-a29c-aa5c3d4b41b1","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":"d6f80eed-80a8-406b-8332-64fa73cce550","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":200,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"9e8e2f47-82dd-41d9-9ed8-838efcad86ab","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":200,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"2edf0999-8134-4855-87b2-3236b1aaca7f","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":"f6417ab6-1f75-48fe-8488-79244a0a0de3","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":200,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"bcb3c924-b38e-4409-a176-bb073d8bcfe9","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":200,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"e9c665f3-3095-42c5-b357-9b1f7ce3726f","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":"0dce8f8f-072b-41af-8a65-c84f82392a0e","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":"99ef19dd-a4a7-4101-9ae9-c7463ac02b00","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":"b4ad3988-be68-410c-bcdc-b7f055717c26","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":"721d131e-ecd9-4298-a554-1595f5d3e098","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":"1d764362-f1c8-4396-afea-0827acdd0f00","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":200,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"5745384c-41a5-45ae-aa9c-cc7144ff6c3e","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":200,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"179bdaeb-c9d8-4e6f-93be-06f926ff5500","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":"d644548e-75ca-4377-a7bc-bd7702c2f7b7","block_type":"box","text":"in which they engage. When a corporation repor ts material financial risk related to policy and or regulatory changes,","page_number":200,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"8ad8fd49-88fe-4eaf-8f72-2231c03e097e","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":"b6e2791e-bca2-47cc-9ef2-f6bca518969b","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":200,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"0c72a857-15af-4d52-9db2-ccebec957720","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":"4144c4b9-b977-4a3f-872f-d8aa055a04c1","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":"7b06eff7-745d-4b26-8757-05ef2586710e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ee4b1094-4e58-4986-ab17-951e08955e8d","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":200,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"9e280830-a0b3-41df-a9ab-ca341da5a80d","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"643642da-dd9b-45cf-8138-444f3c4d6ed4","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":"c25bb305-5d3d-49ac-8006-c4bbc78ef08e","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":"82f60253-8166-475f-b4be-2be590526cee","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":"b94bb1b1-ded4-4a1c-b93e-4b2e8776d594","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":"ad1ed227-d5f5-4a8a-a1b8-14cfed819128","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":"49da9d00-dbda-4078-842c-c623a0e83ce5","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":201,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"166c106f-a330-4b71-a04f-e561f009e37b","block_type":"box","text":"We may suppor t 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":"ea8eba81-c743-4165-a2da-8576f1902676","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":"6a5a7ba4-0310-4de1-88b2-492f3c3aadce","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"9976f027-b37d-45e7-904b-fe62165e18da","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":201,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"64bd5466-8cd4-4e31-8652-236dcf0ffe0e","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b135d718-37a4-4db4-a52f-cb08ee9f78c2","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":202,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"091566c1-b2e3-49d0-bbf1-30a4068225ed","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":202,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"005c584f-71dc-4654-a819-ae2b526f7031","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":202,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"36a6218c-8b88-45db-b7fb-1f99c89cb51d","block_type":"box","text":"11","page_number":202,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"1d0e4d7e-9274-41a3-927e-b881e91c155d","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":"243fd801-8010-4e04-823d-548bbdb294fe","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":202,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"ce5b5e1d-7e47-4661-b131-1a83967d0abc","block_type":"box","text":"Cer tain 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":"614654c6-2acf-4ef8-90b8-4c9a6769e8a7","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":"fb38fd0c-cb0b-4faf-9b89-71efde02846c","block_type":"box","text":"regulatory requirements.","page_number":202,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"e4924f70-6d9d-41d6-abd4-cdbeb57b76a1","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":"70f708c9-b006-4d5e-9346-76c04dd2f187","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":"99c89983-a2d6-4b98-b3ac-3fd1dc6a36e6","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":"6ad24e88-d97d-4411-bb12-1e1b7d6b8306","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":202,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"e8fc84d2-e4f9-4775-93b6-f975f873fc8e","block_type":"box","text":"Doing so helps us under take a more holistic assessment of a company’s potential financial per formance and the","page_number":202,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"38798fcc-3e12-49a9-afad-c99527ac228f","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":202,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"d2c604b1-c0f7-4c5a-8225-89b15965fde5","block_type":"box","text":"We may vote against directors or suppor t a relevant shareholder proposal if we have concerns about how a","page_number":202,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"97b786b4-56c2-4879-a6ad-7427d9f04a9d","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":"c73335d7-2187-4bf0-b7a6-ed3ea181481d","block_type":"box","text":"returns.","page_number":202,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"c885ff26-b205-4e3f-9651-6cfb7281bb60","block_type":"box","text":"KEY STAKEHOLDERS","page_number":202,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"a526d679-2225-4493-999c-3d988267fe2d","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":202,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"41529b4e-b3a0-4e97-9a9e-ed0ffc54aa89","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":"0179e24a-76b7-43f1-bc4e-983d479cae75","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":202,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"2098a921-e5c1-4351-b1a6-86f9fef680c2","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":202,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"89aa8c3d-9034-46ca-8cac-cf9bdaa2590a","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":"64ff0473-77d0-477e-857a-2c9bf7a12f82","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":"765498bf-4f81-4a05-aff8-613c417689bf","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":202,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"fdc0ae45-17e4-4c41-bce8-9f648fe6f1e8","block_type":"box","text":"Cer tain 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":"f48cce7c-a99e-476d-a5ca-e2e6ff9660e6","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":"c0758751-fbd6-45f4-8e22-97ff4cd601b7","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":"12661adc-92e8-41b3-a607-4f7679c7d2dc","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":"413558b4-22d6-4258-b0f0-91a748f96f8e","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":"cf73bee8-195c-454f-98e9-90f3f5ee2747","block_type":"box","text":"i.e.","page_number":202,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"d334c339-9068-4020-9423-dfc1420a59ff","block_type":"box","text":", one in which global","page_number":202,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"16583d00-f121-4772-83db-56495f4aa81a","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":"40dfdefa-31fd-4b6b-aaf1-d83b8e809271","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":"38c0576b-a10e-45b9-9154-c88ff3e88bd1","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":"5b4809cc-52bd-4b3f-ae81-ea94fd10496d","block_type":"box","text":"client.","page_number":202,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"3ed0db91-5caa-4407-888d-ac692031bd35","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":"d6137d55-0a7a-4c3d-8bf2-7d577893a62c","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":"8f50fd37-64af-4f67-8336-57fd69038320","block_type":"box","text":"the low carbon transition, based on repor ted and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":202,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"fb1148df-a24a-4e71-ab5a-1784cff8d5e6","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":"eb283b65-37bb-4fb1-862b-41705f441460","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":"8414d486-6576-4418-981d-bcba5d4b59b7","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":"bb990df5-6441-4bdb-ae9d-d6a15e412a5e","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":"972531a1-44bb-41e1-a668-a949c394252e","block_type":"box","text":"1 and 2 emissions.","page_number":202,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"693a8173-ed24-4a06-9174-eeb65bba1175","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":"309e897d-637f-4ffb-ab34-1e32a9f58023","block_type":"box","text":"suppor t for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":202,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"3e8c6549-5e40-4f32-bad9-f7ef170843ff","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":"175000ca-833f-4fc0-818f-b251eddeb8a0","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":202,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"17bf84a0-90f5-41c5-b261-df226725ecf9","block_type":"box","text":"11","page_number":202,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"ec89aa62-6c54-4a74-b49b-b28e5d1bcbb5","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":202,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"dbc7e850-f8f8-4cb5-bb4a-a758a50edb21","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":"03b91a39-16d1-47b0-8d76-0061f2de9230","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":"17c53265-e3dc-4ab4-889e-2802028e7473","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":"bcc2b0d6-a5ae-4f11-b37a-a36555cef5bc","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":"e5da383e-db32-4fa1-9e0e-9d535b8d5f5c","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":202,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"58f776f0-b029-4a99-ae29-c4f65c5eefea","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":"16c234fe-1f05-46e4-9362-e90033316968","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":"f10f162c-1aa3-46f2-956b-b8c14f3842d6","block_type":"box","text":"sound governance framework.","page_number":202,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"76c2a43d-6d9d-42df-a7a3-7dea36512624","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"6cf70f3d-7c7c-4ea1-853c-9e75890912c9","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":202,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"cbb66dbd-ec9e-4e93-90b2-649b2e187b57","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d3022cf0-c1eb-4f72-804b-f2ad6a67ffc1","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":"0bc3aeb1-b647-4560-ab56-75ad258ffaea","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":203,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"0d7846a9-f3ff-4394-9a05-7ab18b6426c9","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":"55b8da8f-a5d9-4d10-9fd2-ceb558543aaa","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":203,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"4bd67952-b3b0-429e-bda9-c67970fb93a4","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":"5937cede-fdb9-418f-9bf5-db8ab0114b4f","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":203,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"4c55a60b-6930-48de-adb1-5890a7a1a191","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"9a98ee1a-2e73-4d88-ace7-6aa7c8ae75ff","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"67c160b0-0165-4b75-b726-f0132b5d7560","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7df58cdb-1bda-46e5-92d6-177c7340cabc","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":"3ffd98da-84db-40d3-89d6-6850601ecec5","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":204,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"2935ae73-7d91-4c0b-8928-7f7b33e34435","block_type":"box","text":"Oversight","page_number":204,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"d6949aaa-7551-489b-ab0a-3545ebda97d1","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":"fdf49123-7249-49f2-9f2f-1907b3360463","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":"f29ba106-bb65-4cdc-9374-2ee093b46b24","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":"0a49a23e-3ccb-49d0-ab57-73824a252617","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":"029023a1-94f0-4082-a0e0-18206030e8a6","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":204,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"2d84237e-6411-4d78-a367-f85be24ad38b","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":"f6929e3f-2691-4891-9517-2b038ac05aff","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":"7a61b690-b431-4ba5-9e6b-f31e02c4cd55","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":"5406ad25-b2a9-4216-9d38-23045f7472d0","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":"e718ce08-f85d-412b-bfcb-08c2149c441e","block_type":"box","text":"relevant active equity investors.","page_number":204,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"a0a5a538-7247-4e89-9556-52d4c10fa5ca","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":"b3939466-1c63-4eee-8fda-a93cdbf32f39","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":"d7602a34-17cb-435c-840c-53e3490f6449","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":204,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"3e6719a2-8866-482d-8d71-f6ab69e30a2c","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":204,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"caf52a8b-cf87-452f-83ed-b0550ee133b1","block_type":"box","text":"par ties for cer tain of the foregoing activities and per forms oversight of those third par ties (see “Use and oversight of","page_number":204,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"619126da-4708-4606-94a2-6445f9d3e0ef","block_type":"box","text":"third-par ty vote services providers” below).","page_number":204,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"e3c81f74-55e9-4644-9d0d-efe6e4508cac","block_type":"box","text":"Voting guidelines and vote execution","page_number":204,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"e8390001-0850-4105-b0b0-26b685b78fea","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":"8878669d-72c5-4bd9-a28b-ed443786f18e","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":"b5bee536-d0b9-4a6c-a56b-b3f6af0cf542","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":"2d7e5f6c-d6ac-4d0b-847d-9dab2620ffc4","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":"259829d4-12c7-458f-8a6f-45a42f6fdeaf","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":"e4e319fe-64ef-4aea-98a7-bf9890a1cdca","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":"7c2f62bb-6fa1-476f-a1b2-ef8a3e752bc2","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":204,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"6b247179-111c-4b4c-be24-74dd11c80c37","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":"e135c659-42e2-4e63-9a9f-e4f021103391","block_type":"box","text":"although por tfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":204,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"e8dcebe3-1c57-4d78-bee0-ab9a432def9d","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":"2021f5b1-9c0e-4ffc-b89f-ee3161ac8863","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":"1dec07e7-0012-41c1-9bb8-ff431593c6f0","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":"090267fb-1a1c-4814-8dff-d7d4bd180c28","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":"eadb193f-ebe6-4055-9caa-56cfd78cdcbb","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":"be8138ab-4333-4725-802b-4f4a9084b57f","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":"7229d5a5-d154-4154-af6e-ffde7ca839dd","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":"5f0611ef-96bb-4bdc-8fde-1e1baaba37aa","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":"63f7cd66-73a8-4c84-a033-b04353f39016","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":204,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"881b2284-ff28-4f03-a36d-27436be0ad17","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":"de5f9f73-f6d6-4a87-afd4-a1ef56c6bf3f","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":"8f60a2b9-cc61-4334-a555-ac5de11758e1","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":"1e34bd62-117c-44ec-bf0c-30f6da1d1c9b","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":"b1dd475e-6df8-45db-a2b0-80d4bf6c0a3b","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":"a04528a1-546a-4526-9a5f-aea4e6fb3845","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to the","page_number":204,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"6b5e2f56-af7c-4d0a-83d4-a5b6d7eaa4e7","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":"bcfb4c17-9b5a-46ba-80ba-b6d6b5c1d14b","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-effor ts” basis. In addition, BAIS may determine that it is","page_number":204,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"1f2b0523-dd59-4e70-bab5-f671bebbb36a","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":"f06cac50-19bd-401e-b376-af461d18d40e","block_type":"box","text":"(including but not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising","page_number":204,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"54cc0826-680c-437b-8f2a-434327988c74","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":"a2512cc8-11a3-49c4-aa75-7c79e26e15b1","block_type":"box","text":"Voting Choice","page_number":204,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"94ba3d5c-df07-416f-8ef9-da1793325413","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":204,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"d8d2e5df-f613-406c-9574-3df752c9e4e0","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":"742f90cf-d5d8-4523-913a-3cb192516b73","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8677cc81-4307-46d5-bc7c-5339685610c3","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":204,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"985ccd55-ce61-4307-96e5-1410c9b9ec5d","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":204,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b4f15c0e-0681-488e-aa07-99650747c5f6","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":205,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"383b14f2-20ec-47e5-aae9-60ae69c60bda","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":"31467306-0d5f-443d-9cbe-78792ee63760","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":"e6cda9c0-7d9e-479d-b1c8-c2cc1c1e94b2","block_type":"box","text":"strategies.","page_number":205,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"61e0230e-9ff4-4146-b6cd-5bc350b70e8a","block_type":"box","text":"12","page_number":205,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"98991c40-df03-4bc7-b89d-ad38ac6845a2","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":"d32d0352-3048-4371-91a5-15e073765815","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":"0cc30e93-303b-401d-9089-cd29ed2aa76e","block_type":"box","text":"with a third-par ty policy, or have elected to vote shares in accordance with their own policy. Our clients have greater","page_number":205,"box":{"x":68,"y":138,"width":823,"height":11}},{"id":"2e40b423-e7a2-4e35-9451-3ebc74c660ec","block_type":"box","text":"control over proxy voting because of Voting Choice.","page_number":205,"box":{"x":69,"y":152,"width":360,"height":12}},{"id":"f96ffb83-40be-4d6e-9419-c55d86755457","block_type":"box","text":"13","page_number":205,"box":{"x":431,"y":153,"width":9,"height":4}},{"id":"2914ed4a-bd86-4a9a-b8b1-081c3607293b","block_type":"box","text":"Use and oversight of third-party vote services providers","page_number":205,"box":{"x":69,"y":175,"width":403,"height":11}},{"id":"a0c53e7b-6efd-44c9-aa8b-2357fcdd3fd8","block_type":"box","text":"Third-par ty vote services providers – or proxy research firms – provide research and recommendations on proxy","page_number":205,"box":{"x":101,"y":193,"width":794,"height":12}},{"id":"b1826ae0-51d3-4904-a5a9-9b1cbb9f694f","block_type":"box","text":"votes, as well as voting infrastructure. BlackRock contracts primarily with the vote services provider ISS and","page_number":205,"box":{"x":68,"y":208,"width":770,"height":12}},{"id":"73bd9060-15d7-4d30-bb78-9e80d88dcbb3","block_type":"box","text":"leverages its online platform to supply research and suppor t voting, record keeping, and repor ting processes. We","page_number":205,"box":{"x":70,"y":223,"width":807,"height":12}},{"id":"7d8dd00b-9d2f-4b5a-b59b-4dd34a275a38","block_type":"box","text":"also use Glass Lewis’ research and analysis as an input into our voting process. It is impor tant to note that, although","page_number":205,"box":{"x":69,"y":238,"width":839,"height":11}},{"id":"c6989cbe-3566-45a0-92df-bad9d734b706","block_type":"box","text":"proxy research firms provide impor tant data and analysis, BAIS does not rely solely on their information or follow their","page_number":205,"box":{"x":70,"y":253,"width":839,"height":11}},{"id":"3da62772-b8b3-44cc-b41a-d1e452bd0caf","block_type":"box","text":"voting recommendations. A company’s disclosures, our engagements and voting, investment colleagues’ insights and","page_number":205,"box":{"x":68,"y":268,"width":840,"height":11}},{"id":"77913c7b-ace5-4ced-a57a-77cf3fe8590f","block_type":"box","text":"our Guidelines are impor tant inputs into our voting decisions on behalf of clients.","page_number":205,"box":{"x":69,"y":283,"width":578,"height":11}},{"id":"cd9eb008-34f7-41ab-aab3-22a212748cb5","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to streamline the","page_number":205,"box":{"x":102,"y":301,"width":795,"height":12}},{"id":"b8eaf5a0-8131-4aa0-8094-28ce42c64c39","block_type":"box","text":"voting process by making voting recommendations based on BAIS’ Guidelines when the items on a shareholder","page_number":205,"box":{"x":68,"y":316,"width":795,"height":12}},{"id":"9543e7f4-86be-4447-963e-1791005c62d9","block_type":"box","text":"meeting agenda are routine. Agenda items that are not routine are referred back to BAIS to assess, escalate as","page_number":205,"box":{"x":69,"y":331,"width":799,"height":11}},{"id":"107b271c-5717-44c7-8a0d-7016b46f59ce","block_type":"box","text":"necessary to the relevant por tfolio managers and vote. BAIS reviews and can override the recommendations of the","page_number":205,"box":{"x":69,"y":346,"width":819,"height":11}},{"id":"08e19965-266d-4e54-a054-5f56911950a1","block_type":"box","text":"vote services provider at any time prior to the vote deadline. Both BAIS and the vote services provider actively","page_number":205,"box":{"x":68,"y":361,"width":785,"height":11}},{"id":"b1cc07d2-46d7-4379-b1c7-6943046e3578","block_type":"box","text":"monitor securities filings, research repor ts, company announcements, and direct communications from companies to","page_number":205,"box":{"x":69,"y":376,"width":837,"height":11}},{"id":"9915e0e9-7ff0-44d9-883a-830e5d552fe0","block_type":"box","text":"ensure awareness of supplemental disclosures and proxy materials that may require a modification of votes.","page_number":205,"box":{"x":69,"y":390,"width":775,"height":12}},{"id":"a7c6ca5a-f832-4ae1-80d1-c8fca3419fd4","block_type":"box","text":"BAIS closely monitors the third-par ty vote services providers we contract with to ensure that they are meeting our","page_number":205,"box":{"x":102,"y":409,"width":807,"height":11}},{"id":"b16a2088-a04e-4026-8cc9-518bc230fe16","block_type":"box","text":"service level expectations and have effective policies and procedures in place to manage potential conflicts of","page_number":205,"box":{"x":69,"y":424,"width":788,"height":11}},{"id":"13858dc4-db58-4d48-abb6-1c410e8d681a","block_type":"box","text":"interest. Our oversight of service providers includes regular meetings with client service teams, systematic","page_number":205,"box":{"x":70,"y":439,"width":760,"height":11}},{"id":"55945304-f42f-4e50-a4ff-cf2fc9990fc6","block_type":"box","text":"monitoring of vendor operations, as well as annual due diligence meetings in accordance with BlackRock’s firmwide","page_number":205,"box":{"x":69,"y":454,"width":824,"height":11}},{"id":"f9c1c90c-a032-4a6c-8743-92cae952d829","block_type":"box","text":"policies.","page_number":205,"box":{"x":70,"y":469,"width":56,"height":11}},{"id":"87b30d68-7f3a-4e74-82a0-bf05a5b9a8f6","block_type":"box","text":"Conflicts management policies and procedures","page_number":205,"box":{"x":69,"y":491,"width":342,"height":11}},{"id":"42f5cdc4-d4f9-4be3-bd73-060fc7ca8a74","block_type":"box","text":"BlackRock maintains policies and procedures that seek to prevent undue influence on BAIS’ proxy voting 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Trustees/Directors (“Directors”) of cer tain open-end funds (the “Funds”) advised by","page_number":208,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"701c0036-8f66-427c-b724-f69c40ab65c9","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":"61673d91-c442-46d9-aafe-1dfe20b9ad84","block_type":"box","text":"voting proxies relating to por tfolio securities of the Funds, and have determined that it is in the best interests of","page_number":208,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"f5bbfb68-0209-49e7-b513-b68fe56581b8","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":"c1cb9868-1c46-4655-bbb1-dc2466a90dad","block_type":"box","text":"principles outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":208,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"ccd197e2-0b73-42a3-a432-d6ebd42e60db","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":"6d2cdbcd-1778-4e63-878d-d18d003ac5f5","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":"75c39a5e-9605-4ee3-a942-3d2e257ebe0e","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":"8592823c-0789-4c43-98b4-50bcfbe0e80a","block_type":"box","text":"the iShares Core S&P 500 ETF. In addition, BlackRock has adopted guidelines and procedures (as from time to","page_number":208,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"c7836309-436c-43e3-a953-e5674a36f5d6","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":208,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"f7118abb-00ad-43c1-9555-0ebb9cbf70ff","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":208,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"2a7a5757-c63d-4ee1-9a53-012518689753","block_type":"box","text":"Appendix A.","page_number":208,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"a14362f4-081c-4366-a1a9-59b7432d3396","block_type":"box","text":"BlackRock will cast votes on behalf of each of the Funds covered by this policy on specific proxy issues in","page_number":208,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"75d442d4-5dd8-4fd1-a04f-6db95c855844","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines and","page_number":208,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"31678e16-6a77-4692-9d5f-f4ab8912dce7","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":208,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"1afeb0eb-a5e1-4dc6-bae1-e0367ab37414","block_type":"box","text":"Conflicts Management","page_number":208,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"4645040b-a624-4804-b03e-ae036e292b73","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":208,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"ea661f4f-8cc7-4712-9568-2786f3441b1e","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":208,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"297b7ff2-deec-44ae-8c01-cb9541407f5e","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":208,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"42e14019-3721-4efb-bcdb-6c41b640bf9b","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":208,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"15026385-35e8-447f-943f-cc5ad3685309","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":208,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"2c154eda-d1a1-4af2-bed5-f8cf8e81553d","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":208,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"4ba0b8f8-d4a9-4960-bee3-2b61688f8e80","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":208,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"80df2cb6-e962-40ec-b3d4-3de2789ddbe3","block_type":"box","text":"In cer tain instances, BIS will engage an independent third-par ty voting service provider to make proxy voting","page_number":208,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"01ead410-fa17-41e0-8aa5-4d76f5556a8f","block_type":"box","text":"recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":208,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"a73bbc07-f2c6-487a-b3bb-5a206c83aceb","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":208,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"37a8db83-21c1-4745-8d2a-844ff1e50034","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":208,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"2db36b4e-68e6-46d9-89fd-c6790ed35ba7","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":208,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"c3a0cb82-64e6-4101-9a3e-336f0b2f193e","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":208,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"423cccc3-318d-4bb0-9b5b-bbf3597378d6","block_type":"box","text":"connection with proxy voting.","page_number":208,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"e672b3c4-a420-4130-bf9b-9bf3f8e05359","block_type":"box","text":"Reports to the Board","page_number":208,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"ab652896-8d06-4e15-ae0a-2af8e1e8f6f6","block_type":"box","text":"BlackRock will repor t on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":208,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"d9da07ce-ef81-4d40-a7cb-015c2cb1a7ef","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all votes","page_number":208,"box":{"x":102,"y":822,"width":794,"height":11}},{"id":"5d3528a5-7438-41d1-a9ea-21a8a001bb25","block_type":"box","text":"were in accordance with the Guidelines and the BlackRock Climate and Decarbonization Stewardship Guidelines,","page_number":208,"box":{"x":101,"y":837,"width":802,"height":11}},{"id":"ded9f8b7-2eb5-4990-83c8-52c0da333bb7","block_type":"box","text":"as applicable (2) any material changes to the Guidelines and the BlackRock Climate and Decarbonization","page_number":208,"box":{"x":102,"y":852,"width":747,"height":11}},{"id":"8d7d08fb-8a29-49b9-a96a-741700d2b3f3","block_type":"box","text":"Stewardship Guidelines, including material changes to conflicts management practices, that have not previously","page_number":208,"box":{"x":102,"y":866,"width":798,"height":12}},{"id":"a1441fca-982e-43e5-842f-ffee64c05e13","block_type":"box","text":"been repor 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Through stewardship, we assess how companies are creating long-term financial","page_number":212,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"1ec726e1-6cd7-4e40-8629-c91e593f7c19","block_type":"box","text":"value to serve our clients, many of whom are saving for long-term goals, such as retirement. Our stewardship","page_number":212,"box":{"x":68,"y":654,"width":780,"height":12}},{"id":"59cd5af3-13fe-406a-a76f-88c38b38bb34","block_type":"box","text":"program - including when engaging with companies and voting at shareholder meetings on behalf of clients - is","page_number":212,"box":{"x":70,"y":669,"width":784,"height":12}},{"id":"73802bf0-0f9f-46a5-ac3f-9e0b78758d61","block_type":"box","text":"conducted from a long-term investor perspective and takes a financial materiality-based approach, focused solely on","page_number":212,"box":{"x":69,"y":685,"width":828,"height":11}},{"id":"b79f105a-f797-4752-a897-7ee9a6196fb6","block_type":"box","text":"advancing clients’ long-term financial interests.","page_number":212,"box":{"x":69,"y":700,"width":334,"height":11}},{"id":"1b8f720c-0f2a-4553-9449-adb938d89082","block_type":"box","text":"BIS engages with the boards and management of companies in which clients are invested to deepen our","page_number":212,"box":{"x":102,"y":722,"width":745,"height":12}},{"id":"da24f5b0-8a7a-4011-a636-23ec5585d471","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":212,"box":{"x":69,"y":738,"width":785,"height":11}},{"id":"0328b996-323a-4899-b831-51584497d393","block_type":"box","text":"oppor tunities over time, and to help inform our voting on behalf of clients. Engagements provide companies with the","page_number":212,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"27adae02-da0c-4045-ae77-f8d1c82fa7e6","block_type":"box","text":"oppor tunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":212,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"4dda8526-2826-4861-97c5-60911fa093f7","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":212,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"6f01233c-f79f-4708-ad5a-b1b10e64234c","block_type":"box","text":"1","page_number":212,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"9d3ffc09-b458-4ce1-a1aa-4c1eb41c94ea","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":212,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"a280870c-e9b1-4d2d-807a-976490b46e5a","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":212,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"d1175270-9602-4679-8042-509ea584d46d","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":212,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"2da600f3-b40b-45b2-992c-c3062f5806cf","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":212,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"afca48e7-2849-4161-817f-2bab8ac972a1","block_type":"box","text":"2","page_number":212,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"1507e729-b4f0-4d8a-ad05-7f802ae1c110","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":212,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"4f6b0ddc-f911-4791-945e-3ee36b3adedf","block_type":"box","text":"five themes on which we most frequently engage companies, where they are relevant, as these can be a source of","page_number":212,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"68738391-b1a5-4c80-a7d0-b03a8b3da97d","block_type":"box","text":"material business risk or oppor tunity.","page_number":212,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"d34f004d-3389-41c8-a351-5d8b66a57f7a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"731125e3-1402-4288-aa7c-8c75a7d373ce","block_type":"box","text":"Global Principles | 3","page_number":212,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"0efb2b10-e33f-4fe5-a709-801a84978dd0","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":212,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"81fac904-9d83-4654-abe6-7c04d3d39587","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":213,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"4ad72ed9-5bf3-47f6-a192-85d454ca448c","block_type":"box","text":"governance. As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":213,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"1af1f786-b62e-4b27-89f9-e27669bfba66","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":213,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"f9377ca7-a7a9-4477-92d5-3e6c9ad150c6","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":213,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"da3f7ca2-ba6c-4cc0-af88-232d916dc3d9","block_type":"box","text":"judgment of what is in the long-term financial interests of clients. Our vote decisions are often informed by several","page_number":213,"box":{"x":67,"y":105,"width":816,"height":11}},{"id":"088c043e-9528-429a-b722-b0b9a70933e4","block_type":"box","text":"factors, including in-depth analysis of company disclosures, comparisons against industry peers, third-par ty research,","page_number":213,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"ed34e240-5e8c-4ad6-92de-dd3f9c553a01","block_type":"box","text":"and, where appropriate, engagement with companies.","page_number":213,"box":{"x":69,"y":136,"width":381,"height":11}},{"id":"d386001f-5729-463e-bb3f-28436960c3e5","block_type":"box","text":"Generally, BIS suppor ts the vote recommendations of the board of directors and management at companies","page_number":213,"box":{"x":102,"y":158,"width":770,"height":11}},{"id":"cdc15cc4-f378-47c6-88c3-2ff512a39eef","block_type":"box","text":"which have sound corporate governance and deliver strong financial returns over time. When we determine it is in our","page_number":213,"box":{"x":68,"y":173,"width":838,"height":11}},{"id":"413a0284-473f-48b9-957f-44a2cb41cc6c","block_type":"box","text":"clients’ financial interests to convey concern to companies through voting, we may do so in two forms: we might not","page_number":213,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"8e44a87e-fc52-45e5-81a6-681f52964df2","block_type":"box","text":"suppor t the election of directors or other management proposals, or we might not suppor t management’s voting","page_number":213,"box":{"x":69,"y":203,"width":802,"height":12}},{"id":"19ceec7a-071e-4cdb-8028-faee6888e316","block_type":"box","text":"recommendation on a shareholder proposal.","page_number":213,"box":{"x":69,"y":219,"width":315,"height":10}},{"id":"e269a19b-d68a-4792-8350-b8a1f5f6c2d3","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":213,"box":{"x":403,"y":249,"width":172,"height":9}},{"id":"a8c7c4b2-43b6-45f0-9c00-95667d081347","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by cer tain rights attached","page_number":213,"box":{"x":102,"y":271,"width":796,"height":12}},{"id":"c5faf7bb-3eed-4de4-a220-51ac7d4744ce","block_type":"box","text":"to shareholding in most markets, as established by corporate laws, regulations, and listing rules.","page_number":213,"box":{"x":68,"y":287,"width":693,"height":11}},{"id":"c0b56e74-f01c-495b-85aa-39a791d0a3ac","block_type":"box","text":"3","page_number":213,"box":{"x":763,"y":287,"width":4,"height":4}},{"id":"a3595588-ba2c-42b0-806a-efae780da00c","block_type":"box","text":"For example, in","page_number":213,"box":{"x":774,"y":287,"width":106,"height":10}},{"id":"ea2719c6-9090-4182-9f96-ec88084dfbf6","block_type":"box","text":"most markets, shareholders have the right to:","page_number":213,"box":{"x":69,"y":302,"width":326,"height":11}},{"id":"28845242-a922-41e8-9b4a-bbd7c5184a64","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":325,"width":6,"height":4}},{"id":"692417fb-32d7-45bf-8a7e-4ade04a2f1e8","block_type":"box","text":"Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend the corporate","page_number":213,"box":{"x":101,"y":322,"width":804,"height":11}},{"id":"a35aeebd-31da-40b1-8e4e-f6555876561e","block_type":"box","text":"char ter or bylaws.","page_number":213,"box":{"x":101,"y":337,"width":126,"height":11}},{"id":"ede9083d-4f8a-4b75-acd5-a181e0a67e4f","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"c3df18ec-3745-4959-b64f-4c7b6993f9db","block_type":"box","text":"Vote on key board decisions that are material to the protection of their investment, including but not limited to,","page_number":213,"box":{"x":101,"y":357,"width":789,"height":11}},{"id":"90f7b6af-e210-434e-b5cd-c25f654b7217","block_type":"box","text":"changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":213,"box":{"x":101,"y":372,"width":564,"height":11}},{"id":"1aa9969e-47a7-469a-9b86-2490db6f2be7","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":395,"width":6,"height":5}},{"id":"22517c0b-1fb7-48e2-aebd-b1f176d6cd22","block_type":"box","text":"Access sufficient and timely information on governance, strategic, and business matters — where such matters","page_number":213,"box":{"x":101,"y":392,"width":799,"height":12}},{"id":"1e38ddca-605c-455f-a153-0d76efe735e0","block_type":"box","text":"are material — to make informed decisions.","page_number":213,"box":{"x":102,"y":407,"width":313,"height":9}},{"id":"cb87a1f2-005d-4400-9c58-afb959fb5c8a","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":213,"box":{"x":391,"y":438,"width":196,"height":9}},{"id":"ed12b722-460b-4b8e-adb5-8cdfc4877435","block_type":"box","text":"In our experience, there are cer tain globally applicable elements of corporate governance that contribute to a","page_number":213,"box":{"x":102,"y":460,"width":776,"height":12}},{"id":"d75bd9e9-044d-4a64-a040-6351486f6330","block_type":"box","text":"company’s ability to create long-term financial value for shareholders. These are topics that shareholders may have","page_number":213,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"c93af9cf-011a-4c05-b475-1ed029f5da72","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":213,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"d9def573-54b2-4c26-959b-0d21714962af","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"7233d9e2-c897-4fc9-b896-84abc5327885","block_type":"box","text":"Boards and directors","page_number":213,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"21603034-f4ce-462d-a982-87ea6b40b57c","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"8f3bb06a-8e0b-4c8d-a993-de54f23588f2","block_type":"box","text":"Auditors and audit-related issues","page_number":213,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"223277be-8018-4dab-a637-869de48431cb","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"7030802e-fdb0-40e3-a193-d1a958d39cdc","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":213,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"5cce26d9-96a0-4805-a206-cd7982cbc3dd","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"8ee1d127-263a-4f43-8d5e-0e6f541e562d","block_type":"box","text":"Executive compensation","page_number":213,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"003770a3-4e96-4a81-8054-d8dc86a69a58","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"f029f664-9a9c-4731-b517-a60ca7093a76","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":213,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"50bbf85c-e0d8-4aee-b6f7-3b16d2abf78c","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"ca072aea-4b52-4061-ae24-fe0049b1d7da","block_type":"box","text":"Shareholder proposals","page_number":213,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"865fb34f-c416-4db7-b861-3a94b0133f56","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":213,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"bb3bef16-f461-4963-8a57-ff494ee6a9c0","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":213,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"e65cb672-c624-4941-a95f-47b755852666","block_type":"box","text":"which companies operate.","page_number":213,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"6223ad86-b1d9-41e8-af83-184054b89929","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":213,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"79860657-680c-46f3-ba51-4720e59766d2","block_type":"box","text":"in their domestic market at a minimum, and we ask that, if they do not, they explain how their approach better","page_number":213,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"6feba46a-f348-41c5-bfa8-c2f77d144f03","block_type":"box","text":"suppor ts durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":213,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"384ce4de-3e7c-4915-ac32-6a5d8e609fc3","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":"a9c17eed-db6a-4539-85e6-625544b78f24","block_type":"box","text":"4","page_number":213,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"cb028136-1754-47c1-b97a-043515e8a9d6","block_type":"box","text":"3","page_number":213,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"b44ded48-280c-4da9-8cb9-8944554dda49","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":"410c91ff-40ad-407e-89b2-7f2895aab7cf","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":"13b419ad-ea3d-4ad0-b80e-767e129e6850","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":"cb7311b5-83e2-4a37-927f-991f24d56a9f","block_type":"box","text":"4","page_number":213,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"e012f41c-9b3a-42ac-a26b-73005e567ee1","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":"95c676ab-ac22-4572-8a9a-27db1a129203","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":"9ae9d3ea-920e-4fb5-8eb5-da85362a481c","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":"cffef234-3586-4e87-879d-c6470d2c5e6a","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":"64834bd2-afb2-4b16-9f03-8b739b2c47c2","block_type":"box","text":"guidelines.","page_number":213,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"d3a2c19f-137d-41ae-92cf-6a882f2bc843","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"2ba55f01-bd54-4c06-bac4-432ccb89fec2","block_type":"box","text":"Global Principles | 4","page_number":213,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"59a8887c-f18d-4741-8a70-eb0c1a7fc649","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":213,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dd87558d-8d46-4f69-bccd-c1a977c5b917","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":214,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"ec77eb08-7433-4953-8565-e0250954d38e","block_type":"box","text":"Oversight role of the board","page_number":214,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"137ea0e5-bee1-4b86-912f-845655c0a3a3","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":"aceb5a6d-f479-409d-a030-e30260461720","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":"69516fb7-86d1-4a25-b893-35285739c235","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":"84ca8f20-5c21-4a04-b94d-ee14d8c169f1","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":214,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"c7083af5-a6c3-466d-b650-e515d50c9fdf","block_type":"box","text":"long-term financial per formance.","page_number":214,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"89e116cf-0ec2-4443-b5d8-a227c76f1ee7","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":214,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"5ca7176a-bb9a-431e-8a17-9c9bb245e2be","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":"9df4fa05-88ef-4d25-8cc2-5e5e7d286385","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":"209421c0-0743-4519-9ae7-3e963cf1f6ec","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":"3bb162bb-abbb-4c1d-ad3a-621dbb3ccd72","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":"12f2963a-11f9-4c46-b30a-37ad8f2d9d58","block_type":"box","text":"governance mechanisms that suppor ts 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":"42b8c709-ef64-4874-8b58-033937bd9a0b","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":"7cfa853f-52fa-4f93-bed1-1ca33a73d81f","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":"fb4937b3-63ae-476e-b0de-00486ada37a5","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":"9b665e75-326e-46b6-b248-a8f86d2af949","block_type":"box","text":"mitigating such risks.","page_number":214,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"f4e10758-768b-4c41-a281-55bc80a8e439","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":"61f5dad2-4a9d-4a48-9fbd-a47b6035ce8e","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":"b8f88b8a-9d08-4c60-8126-b9314b56677c","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":"754e5c99-0b83-46cf-bc83-4667eb01c1b9","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to ar ticulate the effectiveness of these","page_number":214,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"b4ebfa06-fe65-4fcf-a5ee-2bba86a7819c","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":214,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"f41af239-d0c8-4da7-a9ac-a8d6004e621a","block_type":"box","text":"strategy.","page_number":214,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"47c5eacf-72da-43ab-b531-7efaf9161500","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":"7ceb45c6-b806-4c7e-8dfa-a4b3cddacf56","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":214,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"50459aad-ebfb-4031-b43f-a6ce2efcc535","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":214,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"23609fff-7ee7-4f12-b5a3-e258e6313428","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":"24b6d490-1816-4af6-866f-ea7c2bc49eca","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":"a5c01a69-96c9-4bf6-a65a-f0bb7c5b2aba","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":"87e60432-53cc-406c-8009-c6d093abae06","block_type":"box","text":"per formance. 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":"98aedc74-499d-45cc-8b95-c49e0f2642ab","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":"58dde7b2-e061-4587-bb46-721bc8ff42be","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":"8e17a845-df87-4bb8-b2a4-2f7431d4f3ff","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":"28cb9efd-43a0-4eb2-a07a-813193a9cd6f","block_type":"box","text":"Regular accountability through director elections","page_number":214,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"18b7a5bc-4b35-4db9-b0d5-147c087eb687","block_type":"box","text":"The election of directors to the board is a right of shareholders and an impor tant signal of suppor t for, or","page_number":214,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"4eba7207-ef4b-4d7f-af4c-52bd9640e803","block_type":"box","text":"concern about, the per formance 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":"88ffe781-3802-45b4-a792-bfddc66f1cad","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":"154547aa-57bc-4b7f-9f9a-e75eb93a5376","block_type":"box","text":"5","page_number":214,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"2f48ef70-bdbd-4f71-bb31-374acdfde8c1","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":214,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"4d0711ce-08c0-4269-ab0e-b291df4147ab","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":"b7db0079-81c9-4537-a396-6cd1154fe43f","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":"c787f918-2491-4a30-b472-ad158c0077ca","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":214,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"9aa46de5-e66e-41f0-a1ee-2770674d75ce","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":214,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"cf9f7414-77e7-418d-99e8-e2d97a52a2b1","block_type":"box","text":"Regular director elections also give boards the oppor tunity to adjust their composition in an orderly way to reflect","page_number":214,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"379e3665-538e-4952-9204-1922e268d20d","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":"4312b1d5-3d63-473c-b63a-f46d40a2b964","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":214,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"a89e087e-0fa2-4224-a401-a41234a6c8c4","block_type":"box","text":"5","page_number":214,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"65a4b352-e7e7-4508-b532-16aabf732604","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":"9a53543c-01c9-49ee-866b-e8191b904194","block_type":"box","text":"market regulation or voluntary best practice.","page_number":214,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"8c16f8d3-c363-43bc-9b8b-a3b3ec9f33f9","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"161f9d65-f5ea-4bda-9ddc-bb4f9667849b","block_type":"box","text":"Global Principles | 5","page_number":214,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"fdf6c697-5b6e-4f00-b374-321d87f37241","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":214,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6d22034a-700b-4826-960b-600b3a46201e","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":"669dbcac-9d4e-4e06-b133-c3fb020c2c9b","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":"afe6c623-e9f8-4070-b125-c6774ba840cd","block_type":"box","text":"recently.","page_number":215,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"1d37c95f-5d7b-4998-afaa-2ea9a3309109","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":"0352c3ac-8cfa-4fbb-ac33-6335ec0c8805","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":"49defebe-39be-4fee-b6ad-1b2fde476b09","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":"afb5f0c9-f37a-4dc7-9771-286ede2376f0","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":"292be1c2-f651-4ff8-ae22-ff1d6b462174","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":"bc24e9a0-3d13-4a87-82a8-da06eece3d81","block_type":"box","text":"Director independence","page_number":215,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"1f274fa2-bdc5-4421-9a96-0e300bb568d9","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":215,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"13f922f3-2b23-4601-a344-fabaa9ff1a28","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":215,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"0fd9091e-01af-47bf-9efc-a9206325be84","block_type":"box","text":"6","page_number":215,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"6ff1c2dd-4435-4f4e-9921-33fbd0217c48","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":"7744e4be-2908-469e-a31f-abed1ba92942","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":"f702cfff-e0d8-4795-b64f-a4ffda6f27c6","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":"cd3a8c9d-11db-4085-ab27-e6d899017d25","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":"1d8d0a34-9b09-4d3b-8f67-137787070326","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":"55cdfb54-9faa-438d-b31b-f629c437b687","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"e486f56c-dc49-44e1-a14c-b69bd4a37144","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":"53300dee-b5c4-4cd6-b5ee-c54196ddcab8","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"53811f79-eeaa-40b8-9246-214857ea0c36","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":"bc84258b-357a-4dd3-ae47-16357040d488","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"9e699005-09f9-4566-b316-795dd3fde6b2","block_type":"box","text":"Interlocking directorates","page_number":215,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"24a5167a-f476-4ec9-a4e1-5e80fc6be541","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"d2952f11-9751-4986-bd8a-ac06d536a592","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":"6ee6c45a-c4aa-4942-b336-c00b7e7372ef","block_type":"box","text":"materially inter fere with a director’s ability to act in the best interests of the company and shareholders","page_number":215,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"2ba2117b-76ed-4eb8-852b-d07b176d4326","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":"a4c3b64b-471e-480a-a1d9-21971a4071ce","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":"22d0773d-94ec-4b4b-a0d2-ef671ec95d5c","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to suppor t independent board","page_number":215,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"014d4820-1d59-4ea7-b2c6-8e14f30d0a5a","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":"37508e46-df49-437e-9329-f9641199149f","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":215,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"069a3ae6-94ce-48c2-a7d4-ffa6bf607c9b","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":"e40cd5f2-fa0e-4b61-9bdd-fd9bd9567bca","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":"1de60a73-1b32-43c0-9f82-5ca7280e73eb","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":"0bff566e-6cf0-4333-b1b4-f162c4af2760","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":"860b652d-5173-471e-8e0a-72ecfbe182f3","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":"0894fbf4-14c7-470c-aab1-6a0c20415e97","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":"6b0e0bcf-6dcf-45ab-aa34-ca1b34217bc6","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":"676a8489-d91e-4a86-8456-39338e89aaac","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":215,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"8b7ca0be-1071-4901-96b2-cfc6b929da46","block_type":"box","text":"Sufficient capacity","page_number":215,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"147e5aaa-3e10-480a-bf60-4fbc19161449","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":"8fae44f3-66ec-4d12-aa14-0e8bea56b50c","block_type":"box","text":"appropriate amount of time to board and committee matters. It is impor tant that directors have the capacity to meet","page_number":215,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"dda06464-f703-41ed-9e0b-e9d816c07daa","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":"08c6505f-d370-4506-a733-142a890b098e","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":"903430ff-94ad-42c6-bd24-007811ef515f","block_type":"box","text":"Board composition","page_number":215,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"b95ca4ad-7ebb-4ab4-a3ed-42b660f5b1d0","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":"1eaba482-45dd-47ac-ae43-1fc0011d0043","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":"98f00e54-6f8f-4c24-9b99-a1867992a9fd","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":215,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"251f0eb9-1fbd-4fb3-af87-b54512b223cb","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":"2ba966d8-da61-45e7-a55f-0ed79c38ce4e","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":"a5928008-0f9a-4e2b-80bb-ea3773fdeb0d","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":215,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"adc7237c-4001-4f71-924e-c453a0727a29","block_type":"box","text":"board, as well as the par ticular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":215,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"be74f013-2ae8-4983-8ce6-27ae7f8cad75","block_type":"box","text":"6","page_number":215,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"8df012b5-6f16-4449-b647-ad172e197cc7","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":"2d4f607f-da2c-4d38-b717-91e90b2d5cf0","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":215,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"e14d4e7d-9273-4360-913b-acb1ec2ad711","block_type":"box","text":"BlackRock Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4e206bc1-3525-419c-a269-a0f4747ba13d","block_type":"box","text":"Global Principles | 6","page_number":215,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"dd1e60c5-dd12-44b9-8f4b-c92056b4635d","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":215,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"95ab0562-12ec-47cc-b7cf-51190508e094","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":"115341ac-a466-4345-b800-425abd27b456","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":"8b22a803-1601-42ee-8bfa-40f7ca5475fe","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":"a708c7e3-ddf4-405c-a3db-d6ff791125c3","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":"29562198-e706-45d4-9c6f-8d40f3193c99","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":"6db5c64f-88dc-473d-8f24-a9d7e33f64a9","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":216,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"1d6ce212-a3cc-4ca4-b2d9-484497e34938","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":216,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"d2aefaa0-df2f-40ce-a283-a06e6e4787da","block_type":"box","text":"BIS recognizes the critical impor tance of financial statements to provide a complete and accurate por trayal of a","page_number":216,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"918ae10c-16d0-43c5-a732-16291b182b3d","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":"360d50cc-b453-41ec-a98d-a4b3d7a4cc0f","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":"010a83e9-68e7-40cc-bdf4-c436087abc28","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":"882f1c47-c432-44bf-8f11-5a93224ac60a","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an impor tant role in a","page_number":216,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"f0c5f5cf-8b75-48a2-a8b0-51657f0118b0","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":216,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"3b37f85c-a15d-4f37-b8a9-1ed12b4f5874","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":"599d76ff-e3d4-4ade-80e9-ed7c17fcfa9f","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":"a8c6e88a-d9b3-419f-bde3-3abff186f421","block_type":"box","text":"systems.","page_number":216,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"677f8a09-a34c-480f-ab43-d7a7f66a6c1a","block_type":"box","text":"7","page_number":216,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"941a4d59-0822-43a7-aeab-49ac263e1503","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":"0a57cad0-c006-41f5-9d97-039cbaf5949b","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":216,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"b4a20fae-4f78-4b5c-9009-589175f56a10","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly ar ticulated char ters that set out their","page_number":216,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"aa0fe41f-63f8-49b1-b864-39c14e39d628","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":"6136f5de-5676-4635-953f-85b7229d9593","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":"f169b61e-0c26-4d62-9ebe-cc8d2803594c","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":"3d0f13ff-725e-4609-a9fb-348141400289","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":216,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"5e7605b7-3321-405c-9d38-b32161f74436","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":216,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"c6e151f9-7778-4b50-b21d-39c26a81dc05","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":"d760c9ce-2d2b-4a7f-b9c5-29c9014819a7","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":"25773505-5d1e-4554-98c8-12785728320c","block_type":"box","text":"or internal audit function.","page_number":216,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"c02dff27-4418-47b0-b81d-a278a663de92","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":"e867fe8d-f321-45f9-b3a2-0984977c2287","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is impor tant that auditors are,","page_number":216,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"837fab52-2264-4c28-86e7-b8c3d3d05b6e","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":"d6426e82-9fc2-4b28-8fdd-f93fef509a65","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":"f978347f-57c5-4e5a-a881-328c0d7455b0","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":"99188f7f-c014-4a34-b337-b854cf014fea","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":"a761f9fa-5e41-47ab-aa4e-46064861b754","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":"200d7751-4e34-470e-9b9d-70685d72f16d","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":"6d37fd90-048c-4de1-8ce6-a41e8390cdbc","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":"d013d925-a920-418c-87ba-0c67343112df","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":"a94b4e54-e1b2-4d00-9dd5-35ea196d93e9","block_type":"box","text":"risk.","page_number":216,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"59232f60-5ef4-4b51-89da-8fc836d54c91","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":"f45d9ad9-f518-4c33-8411-d2b0a455c379","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":"61684336-d006-4949-aaa5-78a51a3d7952","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":"9b2dcd4b-ed6c-45ff-b990-1e3e1fe5e889","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":"114abb6f-5e3c-43af-8a4c-1224318e982c","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":"cbe161a3-9952-4244-be22-a67fc6eda30d","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":216,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"3ccb504d-1bdc-4e57-a1c8-2266278aa88a","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":216,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"31ca9f92-98a2-481f-a30c-f51af9d001f5","block_type":"box","text":"7","page_number":216,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"f5cc4e21-e637-41a5-ad2c-1e24bd02b409","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":"445ede2f-3069-4fb5-a852-cffb26f7a5da","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":"8027aa59-7569-4d4c-ad48-9f42677e8cb8","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":"54ae9348-e070-465f-86be-142922afd4cd","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":"08ab178f-944b-470a-b0df-cfcf037cdf6a","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":"9804543c-afc5-4fd0-b20c-ecd96284d803","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"5de7f25d-5519-4fd1-b2d0-aedf2a568eb7","block_type":"box","text":"Global Principles | 7","page_number":216,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"3e99c5ae-7810-4541-8eef-3ea3e685c17a","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":216,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ab8092c2-02c7-48bf-92f0-e76cf2885afd","block_type":"box","text":"However, we recognize that in cer tain markets, at least for a period of time, companies may have a valid reason","page_number":217,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"8f610a1a-edb9-403a-8a74-25cebc108c4a","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":"562d3a31-1bc3-4ee5-a1dd-4a97f0933788","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":"7b4df7cb-dd61-48ad-8996-fe18a01c0678","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":"274cc4ef-c2f3-46b6-8b66-efb4bc27d5ee","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":217,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"394ba0e2-9261-42f6-a4cb-5de298e1cc12","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":"233182f9-6fca-46ab-b067-c9a508b4092f","block_type":"box","text":"minimizing costs to shareholders.","page_number":217,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"3863f5ed-1241-4fab-800d-f57a3f97e4bb","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":"b2f5b8e9-4aeb-469e-a05e-bf51e3dbc5d5","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":"2edf1d55-cc5d-40d6-bc73-6e7dc2c69c3b","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous suppor t of the","page_number":217,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"0f121a12-85d6-4d0c-92bc-f1e7d9bb132c","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":"1c4ee4cf-d3ab-4396-bdf0-46ec576097fc","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":"2792abc0-6553-4f73-9452-5de5dc4e4ff0","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":"f545361f-3c72-4ff5-9f9e-361857d19446","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":217,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"2272b695-1f17-4482-85b0-22dd1cdafa3a","block_type":"box","text":"suppor t should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":217,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"e827c72c-96b8-415f-9a3f-46f535e78da8","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":"6ad7afc6-2894-4ff1-acfc-8665dffaf31a","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":217,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"b4533b7b-bee4-4c31-8b37-d60a5094b5c4","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":"29cf54c8-056b-4bc8-b7da-aa17707050e6","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":"5a3fd996-d171-490b-aedc-2a45f471830c","block_type":"box","text":"ability to sell their shares are contrary to basic proper ty rights. Such mechanisms can serve to protect and entrench","page_number":217,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"b122ec96-0ff2-4d25-bca2-51442818acfa","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":"a67b419a-7cc0-4343-9aa9-a2ac0393495a","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":"eccef511-61bf-4a8e-995e-a8af6d483262","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":217,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"c8884551-ff0c-4437-b18a-a244b7cca516","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":217,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"9d899248-c3b3-4e7e-99ce-660b283ab6cb","block_type":"box","text":"Executive compensation is an impor tant tool used by companies to suppor t long-term financial value creation. A","page_number":217,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"f2dc234c-e59a-4531-a4a5-e2824646846e","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":"0fbb32f8-112a-4701-83d9-267b859818c1","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":"ddf203fe-a18f-460e-8edb-eba2c7e85745","block_type":"box","text":"ownership.","page_number":217,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"dcd33405-1c9e-438f-8274-52dff450cc42","block_type":"box","text":"8","page_number":217,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"3ea6bdb0-b6b5-43a2-87c0-e42e42cd70f1","block_type":"box","text":"We look for a clear link between variable pay and operational and financial per formance that suppor t sustained","page_number":217,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"5da27eee-dcab-4595-8726-4e0d82dcf514","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":217,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"d4f9dc02-8cbf-45a8-8eee-48fafbf179c5","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":"76007fb7-e23b-49e0-8790-0c2b569fae93","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":"ec836e4b-a106-4c41-a2d0-cb8dca92d56d","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":"e45e214e-f5f3-426b-b477-8df6cb0ce3fe","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":"0205c452-3e47-44c2-8606-6aa31cb18f88","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":"245e16cb-746e-4f4f-8065-edb46d6c0a35","block_type":"box","text":"results over a period of years.","page_number":217,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"c40b8fa4-55d6-4100-8a2f-fd84bdcabeeb","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":"e4f6f7b8-c5b5-488b-9110-8f53f07a8202","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":"bdff105e-77ab-4d34-8e59-7f61bcc88410","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":"0f66c037-6bef-4459-8a54-e345d69654e5","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":"2350405f-b419-4dde-a209-26e00f93cd52","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":"73b64df3-f35f-40e9-ada4-0a59975387d9","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":"f1b20c16-8915-404f-aa37-f7d2adf1ec71","block_type":"box","text":"executive compensation strategies.","page_number":217,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"40fbd115-8a2e-4934-9768-07aab784a272","block_type":"box","text":"We are not suppor tive of one-off or special bonuses unrelated to company or individual per formance. Where","page_number":217,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"0a1af768-3910-4bfe-a877-aabb6f879638","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":"2a40acbf-0fc7-45c1-a09a-496bc1799345","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":"2e59e406-3dd9-455d-86ed-e597871bd8cc","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":"3147035c-9809-476e-a712-781bcca9eab3","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":"66cd1071-bb80-4d02-af5c-c5424f9b571b","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":217,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"19d7321a-ce67-426f-8f28-1129e4121b2f","block_type":"box","text":"8","page_number":217,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"d1070a5d-e819-4613-92a0-119226d77264","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":"70bf3f4d-f9e1-4835-8acc-c16607d17742","block_type":"box","text":"different markets.","page_number":217,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"40a6ecaa-aa5b-40cd-9e34-00ba20254e51","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"033a5643-0c70-4731-8be5-5445bafc68b3","block_type":"box","text":"Global Principles | 8","page_number":217,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"7a728097-a05a-455f-b13f-f195c6a281fc","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":217,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"714cae99-5a4c-4a85-9c67-1bf1486056bd","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":"5409fcfc-70ef-434d-aa55-0f918593228e","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":"721f3d11-814a-4b83-a939-815a19535003","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":"55109fb5-39d0-447f-9507-bb8dc28ac1a9","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":"9b4686d2-6d62-410a-a52d-f58997bf7a3a","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":"0d31b7da-6c83-4713-a582-27f827bf9449","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":218,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"d37d8094-7a19-4456-87a3-6e072dfdf2a6","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":"3319b9bc-6b1d-4a69-b638-a5d3c38dee9e","block_type":"box","text":"whom they are charged with overseeing.","page_number":218,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"31bcd8ad-5b49-47c0-856c-cb1b7d064b99","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":"8011e530-dd59-479e-afaf-d91b994b8aa6","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":"cf6cc49d-97d9-4c17-bc5a-65bbaf730741","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":"92078ff9-968b-4066-b7d6-3780a669e7ed","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":218,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"63a82710-1f7e-47ab-9ade-85ba072c460d","block_type":"box","text":"suppor t management’s proposals to approve compensation, where they are on the agenda. We may also not suppor t","page_number":218,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"a0fb09ef-f824-4af4-90f1-6d27ecf5fbd4","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":"7d82ff23-9860-4425-8253-5e3f153b0cf1","block_type":"box","text":"structures.","page_number":218,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"411ae98a-540b-435c-b8cb-970c453fd541","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":218,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"e1ea38b9-381e-4b3d-beaa-f89b2f513c22","block_type":"box","text":"Corporate form","page_number":218,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"a9b72236-1219-4f41-b846-6ff0e7e253e3","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":"83c7ba65-a320-4acc-80f0-fc306ca6437e","block_type":"box","text":"the company’s purpose and business model.","page_number":218,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"5fd2376c-b004-4757-8914-36bbbd7b7ef6","block_type":"box","text":"9","page_number":218,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"9c0b8af7-a61d-4d71-926f-0d9a86ad9c09","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":"ba06e5c2-cc05-4895-9de9-8bdc27a4870c","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":"3b15f37f-b01c-409e-879c-a28394901e65","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":218,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"8f47241f-3ba6-4f4b-bc82-836194b2a44d","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":"41dd89e3-f140-492d-8f3d-1db06fdc1832","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":218,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"3fb2f90e-96e5-4bb6-852c-3050a9eb457b","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":"13796bf3-c920-4086-9388-4dd4a9bd0602","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":"10f8ed80-d38d-4e3c-bfcd-dbb1c66ee607","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":218,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"7571dca8-025c-41c1-be4e-bdb833f99c3f","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":"3f2c64ca-4dbe-4a9c-a659-ab0b7a5106b3","block_type":"box","text":"long as cer tain 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":"725955df-3526-435a-849e-aab559e23546","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":"7c1f0e93-b293-416b-80ee-b431058635e3","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":"f707f168-cf38-4660-81fe-beb513e8d358","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":"5ed3db30-ab76-4b70-840b-aac6d7c6c3ec","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":"7f83912d-0237-48bb-8c99-39f94f3c082a","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":218,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"0ace1897-35cc-4ad7-84a1-f731b5041eae","block_type":"box","text":"may suppor t shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":218,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"b605ee00-4d70-4829-81df-5da4c0c16c64","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":218,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"efb5b7fc-3db2-44f7-81c9-ba2d69260c60","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":"d1fea464-7618-4a35-ab1b-c60e5d1a64d8","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":218,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"1c7fe015-278c-4d2d-b6a9-fb17d889ba19","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":"d445f009-c478-4228-9f52-30dde196a66e","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":"b7dc1a51-2cd3-4e2e-93bb-d68450d38ec8","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":"7a0b4bed-3310-4f8e-8e5d-7234c355b59a","block_type":"box","text":"BIS does not suppor t shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":218,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"1c6c4788-064d-4a81-a923-227aec334727","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":"4f8e5f91-52bc-4d36-9a14-b3408c9b31af","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":"1e4632b0-37c8-473c-a99e-80238a3fc0cc","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":"33e1a47c-ee8c-41e9-8837-6e6a9c8a010c","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":"e44a4f67-a0ac-4e05-bcac-53679fa137df","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":"37ce3139-cb36-4236-851d-7d0d9aecc0be","block_type":"box","text":"requests. Fur ther, the proponent’s suppor ting statement may refer to topics that are not directly related to the","page_number":218,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"85ac26d5-7242-4d63-93e2-46324e043024","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":"3ad477d4-231e-4fde-8ba1-96b2233d03f9","block_type":"box","text":"the proponent. Therefore, when we vote in suppor t of a proposal, we are not necessarily endorsing every element of","page_number":218,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"d0ab1416-d419-4eb9-847e-6cb7adc84c52","block_type":"box","text":"9","page_number":218,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"40aee2da-c0a7-43ba-aaff-1e638845b71e","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":"9975d947-2651-4bc4-b5f2-826c3dea0343","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d939aaaf-301c-48ce-bb8a-608df8e520cd","block_type":"box","text":"Global Principles | 9","page_number":218,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"1e6af292-d942-4fea-909e-8a4b74b454d4","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6720423a-85d5-4de2-81e8-d03185e582cb","block_type":"box","text":"the proposal or the reasoning, objectives, or suppor ting statement of the proponent. We may suppor t a proposal for","page_number":219,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"b439b7ea-edfc-425e-8bf1-bba77c948cfa","block_type":"box","text":"different reasons than those put for th by the proponent, when we believe that overall it may advance our clients’","page_number":219,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"32747870-697e-43f0-8f3b-afb8e5a46928","block_type":"box","text":"long-term financial interests.","page_number":219,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"5c0ede34-00f8-4ec0-b2b4-a61372af81a1","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":219,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"6580e651-4276-4381-bf6c-95b951593242","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":"478cd2f3-1538-48b3-968d-a92f33dcb115","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":"74a430fa-7a4a-416b-b35a-fd56b4a547fb","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":"fe3004c8-573b-4831-b4a5-62dd7e882b24","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":219,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"b347c01c-f1f7-4182-9366-0e8893cea421","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":219,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"eceec108-5fa6-4622-9318-11a4293e1ea3","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":219,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"094f46ac-0aa8-4a3e-8baf-9db33a6e9eb2","block_type":"box","text":"term financial value creation.","page_number":219,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"8f053a0f-063e-4f48-aa7e-9613c99464d7","block_type":"box","text":"10","page_number":219,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"b5264aa3-f790-4684-89bb-e86e378017f0","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":"4a82d9ef-33c7-4698-85fc-37a6968704b7","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":219,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"2c177a25-1ac3-472e-a467-2018aab7ebe8","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":"a132c61e-59ed-4ee9-8ba9-5c28b131ed69","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":219,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"469e94d3-5654-439d-a935-d964182677e3","block_type":"box","text":"industry-specific metrics.","page_number":219,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"71c8e861-96f7-493c-8d91-53adfbcd2b34","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":219,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"ad4d7f4e-f643-45b4-a64b-41bf5768ae32","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":"737c2dc1-da02-4162-84d3-2f2724999273","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":"013cdec8-e471-405a-bf0d-4592aa8f3aa3","block_type":"box","text":"11","page_number":219,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"5b6cb561-ed75-4f98-abfc-9465701238e0","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":"3bd893ee-f8c9-4533-a16c-61d7967d3a2a","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":219,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"2a68d1b7-2a34-42a0-9727-b12720bf9bbf","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":"09af956b-675b-48f2-88e2-1a54c9a58ce5","block_type":"box","text":"specific.","page_number":219,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"4082fa13-027c-4fbe-a673-0c59c5813399","block_type":"box","text":"We also recognize that companies may be phasing in repor ting over several years. We do not prescribe timelines","page_number":219,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"32acf349-d374-421f-97ce-0ac00d86e932","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":"dd29d040-611e-42c6-8fe9-afac9d9bb24d","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":"782e72fd-0c83-4d5b-9685-15722d848065","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":"6b844ba9-56a2-4b45-b04e-fef8cac07643","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":"30e1e72c-49e4-4fb8-948b-352479f11f9d","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":"28750db3-7d26-49df-bfdb-58fdd4b7177b","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":"b1586538-5d7a-4cdb-90be-f3bfe8ec1a52","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":219,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"a5c37548-998e-47b6-8a77-35d33679b005","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":"f09169aa-8807-4c0b-80d3-73171ec80776","block_type":"box","text":"10","page_number":219,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"94e7f522-4b3f-49a5-a2f0-efb3b72af1b9","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":219,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"c5b76930-1008-4fa4-8a5d-8876b34fe653","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":219,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"8a730bab-5f13-4908-87c2-d7cf38e55d65","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":219,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"7651f8a0-e45d-4e7e-85df-04ef661b5766","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":219,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"902d2d70-6889-48d9-8e3a-38a1addf2dfe","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":219,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"80b10ccd-d17e-48da-a56a-fff6d27af76d","block_type":"box","text":"11","page_number":219,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"d3d304f1-68a4-4ba2-b01a-9b512707f5dc","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":219,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"7792340a-9b4a-4141-8dfd-9047cc3b1b97","block_type":"box","text":"(IFRS) Foundation. 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":"3be30bfd-93e5-4a0b-967d-22d023163479","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":"6f5429d8-d8c7-42b5-9c98-09932f867b22","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":"55e735e4-453e-4b7d-8a11-0524fbb63afc","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":"21bfa654-d7ea-4716-b002-76319c2e4bee","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":219,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"87d826c9-4a73-4259-a017-eed71102a7a3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ce4a46ee-140a-41f2-823e-9bc63e1db9c5","block_type":"box","text":"Global Principles | 10","page_number":219,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"ab01f9ba-ad50-4bd6-932d-6ceb7dab8689","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6887433b-6594-48af-9ed5-57452f45d10f","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":220,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"f779767a-9386-4e2d-8770-1e7bc8c44907","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":"4f625d15-649c-4a6a-95a2-610ff4c5fe18","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":"c4d0468f-fecb-4e94-9ec9-e319d36f5ffe","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":220,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"cf61a021-0cbc-4a84-a7f7-80c979095f5e","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":"44816584-7f95-465b-a18e-9b2fc9c108f1","block_type":"box","text":"12, 13","page_number":220,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"52c923a0-8eb9-4c72-8088-e458a3d18a74","block_type":"box","text":"From company disclosures and","page_number":220,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"3e28bdff-6a3f-4541-9c50-85e4a0a9429f","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":"dd98a58e-b3a5-47c8-ac4a-038b4cdf6ba7","block_type":"box","text":"oppor tunities 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":"db910d84-5a3c-45a2-8737-123fd0728568","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":220,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"1bc98856-a691-4a9a-b433-2f26a1c8e419","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":"dd8afc05-56ec-492f-8800-3cd0aadf993a","block_type":"box","text":"viewed as best practice in the market.","page_number":220,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"6c597169-3e2a-4f45-8fd7-b88408a96a3c","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":"24ce1cd8-1bf3-4067-ba9c-fffb6acadb2a","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":220,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"0a4e245c-c0cd-4a27-b13f-3425eec383e5","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":"2118e054-336b-450c-b5b0-a946e387d301","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":"76cac5ff-e302-467a-8de2-5ecc4ca14fee","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":220,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"34c4878a-aebe-4d49-bca6-718407022ae0","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":"69a5a9cb-a215-4a3b-a706-2876b375d906","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":"18a3daca-fa27-40a6-b05b-9083027dda28","block_type":"box","text":"interests of their investors.","page_number":220,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"13be067c-0f9f-4b7d-ad18-6789f12a9871","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":220,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"34798319-f0e6-4466-b6f5-27b9d21b9b3f","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":220,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"3196705e-7b6e-4e1f-8868-723dc1fcaefb","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":"8c0f7cf0-376f-4aa2-865d-120f324d62ec","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":"cdcf6ad4-bd4b-45a2-a201-6894b373bf45","block_type":"box","text":"good-faith basis as methodology develops.","page_number":220,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"fbaa9b40-fa14-4316-a914-0a9cb88ca634","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":220,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"79154a4f-ec35-412f-8d51-372a05359efd","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":220,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"69174595-3ef3-4ad6-8f0a-dd7647c274ed","block_type":"box","text":"generate long-term financial returns.","page_number":220,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"457ab89f-80db-44b0-b323-bf1ba1c77b80","block_type":"box","text":"14","page_number":220,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"55ba27d3-3128-4b7b-98cf-f0baf817c6c4","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":"7adb8b42-91da-422c-b397-484bc63e4514","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":"0c7b1053-b18d-4e34-ba4e-1e995f676336","block_type":"box","text":"15","page_number":220,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"22670519-02d4-4302-8d33-06aa65c2eacb","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":"3931ac29-8bfb-4440-9329-c6c76aa18b40","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":"9b348276-f950-4e3e-94d7-845569759698","block_type":"box","text":"per formance. 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":"1282020a-d177-427f-b09f-d2f6c8953356","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":"a7755a15-10a0-40e9-85ac-72a5083272e3","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":"621811fb-32ac-4c98-adb4-b9d77a299bd0","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":220,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"229ae37f-2c25-4338-8715-268844ebd918","block_type":"box","text":"12","page_number":220,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"f540105f-0aab-4214-afb3-2553ebcead0c","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":220,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"05c99bc3-6803-4b8c-b7a6-07baa435820f","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":"1c471445-996f-4940-8f39-546843267d5a","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":"dafffeee-31b7-42d8-be7c-077e10a0d280","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":"bf1b136c-f665-4616-8945-07d4a1922127","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":"4af97de3-9955-4a8a-8302-aee6dd20e572","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":"d513fc57-7165-4ce9-9a87-3e865c7d493a","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":"d8afed02-c37f-48c7-8e7c-aa7f6a1c87e4","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":"802eecf1-4584-4581-882c-e83d335e20c9","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":"2497c7d1-c5c8-414a-97e9-aa33ef5c4ec3","block_type":"box","text":"13","page_number":220,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"223c02b1-1c33-4f8b-99e8-f9ab7cf7dc30","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":"e8bb31cd-5fe5-4adf-b6ae-ec109d268fe5","block_type":"box","text":"2025.","page_number":220,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"a99346d7-b431-4685-8f7a-f1dd5c23bf22","block_type":"box","text":"14","page_number":220,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"4add7280-312f-4dde-af79-237258663449","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":"13fcc4d4-bf95-4cfc-b84c-570bb885bd6a","block_type":"box","text":"2025.","page_number":220,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"35237fe8-f27a-4044-98c3-aae48a670b2a","block_type":"box","text":"15","page_number":220,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"c2f146b5-2c35-4ee4-a5e2-bfc35bc973a3","block_type":"box","text":"Given the growing awareness of the materiality of these issues for cer tain businesses, enhanced repor ting on a","page_number":220,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"f3aa0540-fe0a-46f3-a18f-071fbfdf3d49","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":"f0ed724c-f726-4af0-9bee-4e748dd49104","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":"78542267-3cc2-460c-b88d-80f9dc550ba7","block_type":"box","text":"some companies may repor t using different standards, which may be required by regulation, or one of a number of","page_number":220,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"c282d897-c2ad-434d-9d0a-5572afe74467","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":220,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"1db90c16-bcfa-4853-989a-fedad572f97e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4b85c30b-3171-4939-b4ca-f03732b8cbb4","block_type":"box","text":"Global Principles | 11","page_number":220,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"2d489045-26ef-4d21-b01c-99612a9d3ca8","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4f2dee1d-e2d9-4741-aa2f-d58750267a0f","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":"8afd755f-64a4-4941-aae5-ce28919394f3","block_type":"box","text":"This is par ticularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":221,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"a6837f9f-0594-4d0d-9fe0-8729548e019c","block_type":"box","text":"16","page_number":221,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"cd99e5fb-0833-4736-ac72-b42d41554f14","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":"f0f60d5f-2544-4e8a-9024-67828ec3f832","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":"55528630-3796-4a45-aa2d-ed9c5edb0a54","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":"41d65cef-7078-4ca4-ab5b-5631c3e2194d","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":"8c87cf7c-b1da-4766-8367-911b5970fefc","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":"334da347-515c-44fc-a61e-6a7b3fefdb57","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":"03fa0a58-da9e-4ed5-8375-c7b1bc674c80","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":"8798d669-1e1c-4d2e-96c1-4991ff238ed0","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":"4b772165-dc2d-48a1-871d-82f8d124e14b","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":"faa9f006-5e17-4ed1-8592-f6e855c5e558","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":"363a5ec3-a507-440b-833c-393186f37620","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":"cf69406e-6c51-4c1f-b01b-839c388853b0","block_type":"box","text":"impacts.","page_number":221,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"06b3e627-02f6-46dc-9013-1af915a4e757","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":"a7a0114c-3299-4b5f-963c-b393725b4389","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or suppor ting a business relevant","page_number":221,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"9b8588a6-ebe5-4ef4-9604-471bce407053","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":"6b591fc9-1d9e-4aa3-84cd-cfa2b6181fcb","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":"6b8e5648-70ed-4c13-ab1e-2f6b0ccd57dd","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":221,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"de82d875-8093-4273-aee6-7fbd89612b4c","block_type":"box","text":"clients at the global and regional level.","page_number":221,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"2211c7d8-45ff-4cb6-add8-ce57b79d8020","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":"54aee4a5-d711-4d54-a4c8-e144ee937bd0","block_type":"box","text":"suppor ts 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":"fac686b9-a22d-4fb7-99de-4407ebb93929","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":"c35fa767-beed-487a-b7fa-5d77e972c694","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":221,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"4663854d-d1bb-4cc2-aa7d-f82749aad7c4","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":"8a648fe0-87a1-42ec-bda9-6d493a532484","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":"2450aea3-4676-4d78-a445-c6b5a4de0bb2","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":"1539d003-96d8-4dd8-ba82-d9298a8fbc7a","block_type":"box","text":"are independent from the investment stewardship function.","page_number":221,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"ad7db3c0-9952-41e2-9b87-d61fa779d312","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":"bb9db163-4222-40d4-9981-42bb01e40e81","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":"c264af78-962f-47a6-9ff2-5f4cb368d1c3","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":"05a5386d-7a24-45df-9b58-a4bccc106b73","block_type":"box","text":"VOTE EXECUTION","page_number":221,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"494be82f-2700-456d-b37e-d99cd9e436b6","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":"52edba21-c411-441c-aa79-7da74b001697","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":"7b9da3ad-5c1d-4b88-ab52-740cdb24b3af","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":"7611c552-ce2e-4728-b474-5db8fc62d09f","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":"203e947b-6dfd-43a9-a26d-c9640c034849","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":"93a4787c-58ec-4c1e-a5a0-b32a902b14f2","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":"d4465cfc-e814-4e9f-8c85-b31c2db4f78a","block_type":"box","text":"management policies and procedures,” below).","page_number":221,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"4f885e5b-b576-4240-8260-26b03e18cfd7","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":221,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"6242bea7-c7cb-4468-8872-84e7a54bc956","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":"5659f024-87ea-4444-af10-4e801599dd87","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":"91537ed8-b65a-4732-a840-1f7a9dda0129","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":"915f44a7-9c88-41cc-9f2b-9954dcbf482e","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":"c538b391-0b4a-4027-b91e-d7bd2fc1fbe0","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":"cfc46c07-b7e8-4282-aa86-d116d3118391","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to","page_number":221,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"944f65a6-dd84-463b-85eb-d8663f8012e2","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":"3ec97b8e-ec1c-446c-b3be-37d26d11e298","block_type":"box","text":"16","page_number":221,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"cb276991-a282-4521-bdbd-725fccd62062","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":"f0184863-0168-4f1f-93d8-4881defb5ef0","block_type":"box","text":"December 2025.","page_number":221,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"3125b54d-ed27-4505-92a9-1cd111819d2f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"3721be8c-e9f3-40df-8824-a60567d51b62","block_type":"box","text":"Global Principles | 12","page_number":221,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"a62f5ea5-acc0-411f-b8d7-c3c275985523","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e0319026-1230-4771-8416-6b89c2f3fc2c","block_type":"box","text":"BIS votes proxies in these situations on a “best-effor ts” basis. In addition, BIS may determine that it is generally","page_number":222,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"ef913c34-261c-48f6-8acf-db8281138330","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":"e86525c2-7e45-423c-b395-715175df4c44","block_type":"box","text":"not limited to oppor tunity 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":"563d07fa-5f26-4818-a4d0-48dd0614cdbe","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":"8deeeee0-84f8-4925-be1b-190ecbd6060a","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":222,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"d8588f29-6e40-4b53-96d8-e3803d9d196d","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":222,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"8c5f644d-a3c1-4a72-805e-e91ed925ea61","block_type":"box","text":"enterprise-level vendor management activities.","page_number":222,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"1f09ff03-f47a-4a88-89b5-7bcefd5d9252","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":"f9fe4148-5ff4-4488-ace8-0c7d908a6419","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":"820bf78a-6f65-41d4-a6e2-c51924b9d52a","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":"2b21afb3-7bb0-4872-b282-d3fc04f96039","block_type":"box","text":"BlackRock employees.","page_number":222,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"d31a1690-a022-4893-9330-baa6eef27774","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":"b96e2ac2-b684-4787-b002-55c1b4e456f0","block_type":"box","text":"SECURITIES LENDING","page_number":222,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"7e67793b-9192-4e08-ac2f-703b01902161","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":"84ebc83c-7a88-43f8-af03-b952c93abd6d","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":222,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"ad819231-bcd1-4b49-9b40-70fd6491d46e","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":"d28b9a7f-4bc7-4c5a-b535-dd1247606a3f","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":"c0c05632-383f-4385-b9ea-ca41e17dcebc","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":"9367830b-c2c0-4283-8bda-77360c32a7c6","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":"5b3d2c70-67b1-4e28-b929-dd95c68dedbd","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":"0f5b58f3-3de6-40fa-855d-a722f5c516a4","block_type":"box","text":"in helping them achieve their investment goals. While this has occurred in a limited number of cases, the decision to","page_number":222,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"f5162932-b59c-45b7-9102-b7f4b19efe33","block_type":"box","text":"recall securities on loan as par t of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":222,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"a24a1c5c-802c-400f-9dae-64fbf2e93932","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":222,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"ff8ebcaf-fb10-4c7f-9bbe-77be1bc8d262","block_type":"box","text":"potential long-term financial value to clients of voting those securities (based on the information available at the time","page_number":222,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"52da27b4-6666-4d8f-aa41-7732f256b674","block_type":"box","text":"of recall consideration).","page_number":222,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"c3dd9501-9b08-4d68-85cb-2a38a39afea6","block_type":"box","text":"17","page_number":222,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"35e8ce9c-59e8-475a-9b84-f1c9fb74e833","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":222,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"136fea2d-4851-4ffc-a8ea-21353acbbd42","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":222,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"8748eb43-0769-4836-be83-8d8f8fff694f","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":222,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"1d9de027-476e-4f54-a589-692eb495184c","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in cer tain instances,","page_number":222,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"d397d439-9219-4251-97b9-80560ac327fa","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":222,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"4efe4b4b-d2a4-4844-b073-3f0c53799828","block_type":"box","text":"the securities lending revenue loss to clients and would therefore recall shares to be voted in those instances. It is","page_number":222,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"633476e5-bea0-4b1b-b054-9aa0d1d3f94a","block_type":"box","text":"impor tant to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":222,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"8ac9208d-66e6-4625-8631-9cccaf649a67","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":222,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"651bf458-fd2d-412d-a4e1-c01305bd4ffd","block_type":"box","text":"and may modify it as necessary.","page_number":222,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"0842f45f-6067-415b-b1fe-c4f0f8b278d7","block_type":"box","text":"VOTING CHOICE","page_number":222,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"4403da1c-2415-4ba6-8bb2-7bdd814146d2","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":222,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"decd5ec8-5d70-43f8-a5e0-6ddb5174441e","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":222,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"54818f86-5936-43a3-baa7-9986cb7d225d","block_type":"box","text":"18","page_number":222,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"36fbbcec-8fae-4e2f-a581-20599e301d72","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":222,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"4569c12c-b136-4a3c-b093-a403d766912b","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":222,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"1defeaa4-9502-4861-81ec-b383c82d37d7","block_type":"box","text":"17","page_number":222,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"6ed7d1ac-696a-4e80-991c-c48e82985aec","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. In the U.S., for example, the record","page_number":222,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"285a221d-109e-407c-b74c-f3732f50bffd","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":222,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"50adbc01-e013-4763-87f3-94bcbdf29c22","block_type":"box","text":"practicable to evaluate a proxy statement, determine that a vote has a material impact on a fund and recall any","page_number":222,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"b79ad0f7-633d-423c-a9f7-840111c54b30","block_type":"box","text":"shares on loan in advance of the record date for the annual meeting. As a result, managers must weigh independent","page_number":222,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"bbcb7fb2-bb48-4406-8340-0db1356d1e5d","block_type":"box","text":"business judgement as a fiduciary, the benefit to a fund’s shareholders of recalling loaned shares in advance of an","page_number":222,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"0092a069-2850-4ba1-af2d-04f21686acc4","block_type":"box","text":"estimated record date without knowing whether there will be a vote on matters which have a material impact on the","page_number":222,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"fc1e2735-3211-4220-83a0-986ece45c0b6","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":222,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"28924fb7-f891-4bcf-9238-bea6580e57e2","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the oppor tunity to vote).","page_number":222,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"c6a15b1f-aa88-4f7a-8071-15000ffbea93","block_type":"box","text":"18","page_number":222,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"31d46a44-15be-4a6e-a583-a5a2f46952a9","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":222,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"ef108f11-def9-4ebc-b4f2-ce8a18568e8b","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":222,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"3b4fd351-e8c6-4449-b223-f28417aae489","block_type":"box","text":"including the decision to lend securities.","page_number":222,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"5a185ae1-5a5d-4ba1-b599-4806b34ab478","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4186388f-31fa-49ea-9e27-fc6a19ad714d","block_type":"box","text":"Global Principles | 13","page_number":222,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"a28e825d-7efc-4028-ac89-5b0302ca9881","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2e9fc627-a41c-4631-ab41-e3e92b575dd6","block_type":"box","text":"cer tain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":223,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"a6f314bd-7c87-4e8b-b1e6-caead7c00509","block_type":"box","text":"(SAE) strategies. 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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":"9d7d41ba-23bc-4ba6-af5e-16bbe05956c3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"7ddcf2ef-43a1-4dc2-9d13-e324fa602afa","block_type":"box","text":"Global Principles | 15","page_number":224,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"b3cb43c8-6398-4fab-a5b7-85fe66e7892d","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"da6c3909-866a-4d66-b4d1-2b7ccf0dead2","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":359,"y":45,"width":260,"height":11}},{"id":"76445495-c79e-4b5b-ba48-6101481a8063","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines","page_number":225,"box":{"x":297,"y":67,"width":384,"height":11}},{"id":"9fec59e8-3bbb-4416-8fc6-ba5d755b9bdc","block_type":"box","text":"Effective as of January 2026","page_number":225,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"1e00ad01-4d5f-426f-a8a6-44eb55e4acb7","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":225,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c7cb947b-6238-480a-bdb7-37e2fdcd200e","block_type":"box","text":"Contents","page_number":226,"box":{"x":456,"y":45,"width":66,"height":9}},{"id":"be56bccc-c3ea-444f-8f67-7016088e26c9","block_type":"box","text":"Introduction to BlackRock Investment Stewardship 3","page_number":226,"box":{"x":69,"y":80,"width":840,"height":11}},{"id":"ace45158-5a3d-4fcb-8aab-668a9d063252","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":"c7de40ec-8059-4bd4-be03-6abd3640cb61","block_type":"box","text":"The Climate and Decarbonization Stewardship Guidelines 3","page_number":226,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"dce055df-c38c-4fb5-abbf-36c5e26a35ee","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":"b6fd1627-1a6d-4484-b602-8175c1064062","block_type":"box","text":"The Guidelines’ design principles","page_number":226,"box":{"x":68,"y":146,"width":240,"height":11}},{"id":"4c7f82c0-32d6-4233-8782-ee9ed54c78d1","block_type":"box","text":"4","page_number":226,"box":{"x":900,"y":146,"width":9,"height":8}},{"id":"15dc5dde-1f9b-4e0c-a68e-40d992cb667c","block_type":"box","text":"Voting approach under the Guidelines","page_number":226,"box":{"x":68,"y":162,"width":273,"height":11}},{"id":"949a652e-56b1-4fd5-a93a-dd76164efaca","block_type":"box","text":"5","page_number":226,"box":{"x":901,"y":162,"width":8,"height":9}},{"id":"7b84ba75-c815-4297-b86b-774f646ecb16","block_type":"box","text":"Related matters","page_number":226,"box":{"x":69,"y":178,"width":117,"height":9}},{"id":"7473f291-dc4c-4255-bcc2-187b71dff628","block_type":"box","text":"8","page_number":226,"box":{"x":900,"y":178,"width":9,"height":9}},{"id":"91385c2d-3f03-4806-983a-2f43e7e4dfe9","block_type":"box","text":"Appendix 1","page_number":226,"box":{"x":68,"y":195,"width":82,"height":11}},{"id":"1b6d8f22-ae8a-4da6-b831-053cd5285824","block_type":"box","text":"10","page_number":226,"box":{"x":891,"y":195,"width":18,"height":9}},{"id":"6ea0adca-057b-47cf-b891-1bc9f139685b","block_type":"box","text":"Appendix 2","page_number":226,"box":{"x":68,"y":211,"width":82,"height":11}},{"id":"f9a84578-52f0-420e-9142-02acd2ea4700","block_type":"box","text":"11","page_number":226,"box":{"x":891,"y":211,"width":18,"height":9}},{"id":"53ecac3a-2f9e-4c31-81fc-5dccba71aab6","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"61014b89-8578-4ad6-b740-9d79ad76c37a","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 2","page_number":226,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"b7f45249-741e-427c-9455-2f994d285f8e","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":226,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8b16e9c9-d3d8-4913-afa0-bccf9465e4aa","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":227,"box":{"x":264,"y":45,"width":450,"height":9}},{"id":"5ed2a441-61a0-463d-8c0b-9d33fdef9593","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":"66eb3a8d-bd31-4efb-b819-dbc7045983c5","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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Net zero commitments are sourced from respective","page_number":227,"box":{"x":79,"y":850,"width":782,"height":11}},{"id":"5f77c0f5-1de3-4248-accf-cf05c5f80f90","block_type":"box","text":"company websites, as of January 2025.","page_number":227,"box":{"x":69,"y":865,"width":284,"height":11}},{"id":"7f210960-12ad-47e0-91df-b3258a843e7f","block_type":"box","text":"5","page_number":227,"box":{"x":69,"y":883,"width":4,"height":5}},{"id":"c3846655-ed8d-4717-9c54-aa8bbe0c465d","block_type":"box","text":"A list of approved funds is on BlackRock’s website here.","page_number":227,"box":{"x":78,"y":883,"width":401,"height":11}},{"id":"81c5a862-33f8-4c54-b315-040aa1b0d0db","block_type":"box","text":"6","page_number":227,"box":{"x":69,"y":901,"width":4,"height":4}},{"id":"3835ef63-55dc-4707-8e5d-9ac2a50290c3","block_type":"box","text":"United Nations Climate Change, “The Paris Agreement,” accessed in December 2025.","page_number":227,"box":{"x":79,"y":900,"width":614,"height":12}},{"id":"b00cd180-3981-4eb8-a581-ba3885c43898","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ecfe84e1-42a0-44eb-b380-30198fe2ebed","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 3","page_number":227,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"19ddb1fd-bc50-4f48-a8a1-9261217f3b83","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":227,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3b3538f3-d0a6-4067-a81f-482a26f69ce5","block_type":"box","text":"par ticularly those representing the major sources of scopes 1, 2, and 3 greenhouse gas (GHG) emissions across","page_number":228,"box":{"x":70,"y":45,"width":806,"height":11}},{"id":"0cff7672-eaed-40a8-b8d9-a8775a5dff64","block_type":"box","text":"companies held by in-scope funds and accounts that have selected the Guidelines.","page_number":228,"box":{"x":69,"y":60,"width":590,"height":11}},{"id":"deca1a79-b5e9-4009-8a58-a1f78d5d3777","block_type":"box","text":"7","page_number":228,"box":{"x":661,"y":60,"width":4,"height":5}},{"id":"984df1cd-cf7c-4ec9-8897-aa9c2baf6938","block_type":"box","text":"For companies and matters not related to climate and transition risks, the dedicated team follows BIS’","page_number":228,"box":{"x":102,"y":82,"width":731,"height":11}},{"id":"74b81a68-cffa-474f-a65e-3aed87d084c5","block_type":"box","text":"Benchmark Policies.","page_number":228,"box":{"x":70,"y":98,"width":141,"height":9}},{"id":"8f394b8c-0b12-426e-a578-7a377dd2077a","block_type":"box","text":"8","page_number":228,"box":{"x":213,"y":98,"width":4,"height":4}},{"id":"67b691b2-915d-461c-9337-24661560ca76","block_type":"box","text":"In addition, for clients who do not direct BlackRock to prioritize climate risks and","page_number":228,"box":{"x":224,"y":98,"width":572,"height":11}},{"id":"90103bd8-ecbf-4aba-a08b-570486308c6b","block_type":"box","text":"decarbonization as an investment objective, BIS under takes our stewardship responsibilities in line with our","page_number":228,"box":{"x":69,"y":113,"width":769,"height":11}},{"id":"be1a75c4-9788-4c99-a808-bf33d7909611","block_type":"box","text":"Benchmark Policies, with a sole focus on advancing those clients’ long-term financial interests. 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In addition, cer tain disclosures related to a company’s plans for adapting their","page_number":229,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"13dd3ed6-16e1-42ab-907e-c2f6a4ba9ee7","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":"f55a5b54-b5a1-4dde-8ec9-b1fc81ceb9bb","block_type":"box","text":"14","page_number":229,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"55aaa540-68d5-4414-9643-0864e3165248","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":229,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"0aa53ebb-ce1a-4ee3-9795-3ee20e4883d3","block_type":"box","text":"(IFRS) Foundation. 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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":"115a0865-88d5-407e-855a-557b69bc128b","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":"cf31d001-7d78-429b-bbe4-292948d17282","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":229,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"ebea7bf2-2e70-4947-9b2a-2f1c9dd14c0b","block_type":"box","text":"15","page_number":229,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"39e9ceb6-379b-49ad-a9e7-ae9e7b17971d","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":"81344c1c-bd0b-4310-a521-0026be69eab2","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":"f308595e-eadd-44cd-91bc-0ea4bc54b7b7","block_type":"box","text":"companies may repor t using different standards, some of which may be required by regulation. In such cases, we","page_number":229,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"9d67fe24-8d41-4168-a3b8-609b3ad99dfa","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":"d986a330-e87e-4fa4-928e-034cbdff22f4","block_type":"box","text":"may be phasing in repor ting 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":"f4ad83cc-6860-4365-a2ca-07a7ef31a1cb","block_type":"box","text":"BlackRock Investment Stewardship","page_number":229,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"329d05b8-f331-407f-ae15-6fa4c758c69a","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":229,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"69d08c73-8f92-4200-a69b-02ed7dfc9ba2","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":229,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f307c104-c342-4e98-a047-f4824547e3fc","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":"841d6832-0c51-4a10-9f78-c33582468a3d","block_type":"box","text":"16, 17","page_number":230,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"ad83ff72-4356-4f30-b29f-3ae796630893","block_type":"box","text":"In addition, the dedicated team looks to","page_number":230,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"fa97b723-23cb-40b3-bf20-5db21051643c","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":"523c7bc9-eeb9-41c2-9544-cd29356ff0b8","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":"f9253e30-e915-45db-8dce-c706bb2b089e","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":"4728283b-8755-466b-8a0f-4b299769fbe5","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":"b9637560-cdef-4cda-9219-a743dcdf8f15","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":"09c85ca2-9cd7-43cb-b424-46d87ca6bff4","block_type":"box","text":"18","page_number":230,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"61bffb7b-c99d-4069-900d-1e1e8eb612d0","block_type":"box","text":"However,","page_number":230,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"8d14bd5a-5c14-40ed-b0d4-5029c3bb5fb0","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different par ts of","page_number":230,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"2e11016d-8adf-41bc-be79-bcd12c4c8049","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":"99e6dfa6-cd34-45bf-9342-b82af0b86b1e","block_type":"box","text":"their decarbonization targets. For some companies that play an impor tant role in the low-carbon transition, scope","page_number":230,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"c778b783-3419-4c15-bab6-ad2e45b54820","block_type":"box","text":"3 may represent their only significant source of GHG emissions in the value chain. While we do not believe","page_number":230,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"cab81287-d3a2-4b8a-9f9c-b01a1fbf1dc9","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":230,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"bc83a7bd-025a-4f74-924a-9521f95f9bcb","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":230,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"f03660e9-d51b-457b-b782-46d922cda444","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":230,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"b58234db-80a5-4451-86c9-9f0e3fc4382b","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":230,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"9dde2afa-500a-4353-94cf-877c25706d17","block_type":"box","text":"transition risks.","page_number":230,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"1f357937-2c12-4013-853a-f1275af58d0e","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":230,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"6e40f0d1-595c-49e7-b072-a9faada24076","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":230,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"ea04825f-2028-4629-8c9d-7581b24755f6","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":230,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"0ea6dada-2aa6-49ce-9b0d-07a6f003c71e","block_type":"box","text":"Transition plans","page_number":230,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"ec5abb3b-1ffd-4439-86c5-a2cbe6512680","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":230,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"f3835d43-1962-4d7a-a4a0-aceba55efc8e","block_type":"box","text":"transition strategies. As defined by the ISSB, a transition plan “lays out the entity’s targets, actions or resources for","page_number":230,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"d44183df-e18e-4302-b816-6d7d0d334ec5","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":230,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"a491bf48-6862-43b0-8d72-676f25574fff","block_type":"box","text":"(see Appendix 1).","page_number":230,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"5ee90ce2-0a94-4d1f-b6a7-358368e7d155","block_type":"box","text":"19","page_number":230,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"756249c7-dbb1-4e2e-94d5-3d67477d52af","block_type":"box","text":"Work is also underway in a number of jurisdictions on establishing a common approach in a market to corporate","page_number":230,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"8cdf1619-97d5-4b74-bc63-f6c6c38ed7fe","block_type":"box","text":"transition plans.","page_number":230,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"dd2eb6f5-7450-4e60-8b3e-d9ca9b73abfe","block_type":"box","text":"20","page_number":230,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"ffc54da1-840b-42cf-beb2-c8d6928a9a0f","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":230,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"c501f4e2-1f27-45c7-b5c1-c7312a076804","block_type":"box","text":"repor ting approaches.","page_number":230,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"578ad5d2-9b56-4553-a886-9a344930f7c5","block_type":"box","text":"While the preparation of a transition plan, or lack thereof, is not, in itself, a voting issue, these disclosures","page_number":230,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"5901917a-7207-4b94-9b02-ce8eaf21ef35","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":230,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"2ddffb9c-b57b-48e3-8f27-2f564feb14d0","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":230,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"131b0258-6fa9-4a83-ae2d-e123615c3c7d","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":230,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"95b21833-9bdb-4c9f-95b1-41b0091f0e6d","block_type":"box","text":"their shareholder meeting, to the best of their abilities, to provide investors with time to assess the data and make","page_number":230,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"73a3aaaf-a280-498c-82fa-70d49eed6d14","block_type":"box","text":"informed voting decisions.","page_number":230,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"de4f13ef-ea7f-40d5-9746-8088f501914b","block_type":"box","text":"16","page_number":230,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"8d0e72fd-6a63-4f87-8c36-f69f29679ba4","block_type":"box","text":"FTSE Russell address the materiality of different categories of scope 3 GHG emissions by sector in a January 2024","page_number":230,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"9b48463e-1c0f-4711-bb2e-d6ea695d02a4","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":230,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"268aa578-3af1-4a39-b57a-c21dba9df324","block_type":"box","text":"December 2025.","page_number":230,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"e56a470b-41e3-4fd3-8423-d985ccacdc84","block_type":"box","text":"17","page_number":230,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"00c87ed2-6acb-4b1a-afee-7afbf45275c9","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":230,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"0c1b6ed9-22a9-47d3-93b0-5179af578ed5","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":230,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"527716c8-f57b-4d5f-b144-499c1106a455","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":230,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"2ad2ef4c-612f-41d7-bf57-e8104f3a4548","block_type":"box","text":"science-based and net-zero targets in line with the global 1.5°C goal.” Websites accessed in December 2025.","page_number":230,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"85714a0b-be43-4167-be1d-d1999b75d33c","block_type":"box","text":"18","page_number":230,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"377e8f4c-379a-4376-8b77-805b6aac8a5a","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":230,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"4f79e45e-3967-41ef-9ff8-4d722f684234","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":230,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"757a2711-51e9-4823-ab29-e21cb89019c0","block_type":"box","text":"complexity for scope 3 emissions and the lack of direct control by companies over the requisite data, we find it most","page_number":230,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"dbc88fd1-62b7-4739-bc5b-43349a1f4934","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":230,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"4f8c8b5b-f2d2-49f8-9e3e-0f3b420cbdc3","block_type":"box","text":"material to their business models.","page_number":230,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"6d594308-048f-4dec-89c7-5d553257d079","block_type":"box","text":"19","page_number":230,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"c1c89737-49e0-40b5-9a33-ac4625e7c72e","block_type":"box","text":"International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":230,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"839df6c5-6045-4520-86ed-91f91a6e5dbb","block_type":"box","text":"December 2025.","page_number":230,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"4aaced57-7227-4531-83ad-50c5495edb70","block_type":"box","text":"20","page_number":230,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"6b53f91c-ca5b-47bf-aa2e-6465869dedea","block_type":"box","text":"More companies are developing such plans, and public policymakers in cer tain markets are signaling their","page_number":230,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"23290804-f756-4977-a650-5cf1f05fa866","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":230,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"c01d9d3c-5cfd-48dc-855f-e71b8092d63b","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":230,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"10052026-b7d1-41e1-b4fe-e8f3e1997b11","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":"ecb42f39-3ac8-46f0-9512-88db941960ec","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":"3d1bbbac-08be-4a58-95fd-0aec04edca1a","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Under the Guidelines, the team may suppor t","page_number":232,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"33e4a75c-71fd-4cbc-9793-779aa5af73b6","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":232,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"dbb7de39-c9e7-4903-b265-bff7f9e87bb9","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"31da1585-5813-4dc5-93a0-5d5eefe0bfdb","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":232,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"e7668881-53ff-409c-b6cc-741902fdf5c8","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":232,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"afe5ebbb-419a-44ff-983e-a54854a0f08b","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"a6e511bc-5ab7-4ba2-8330-ee56655c4d6d","block_type":"box","text":"Align scope 1 and 2 GHG emissions reduction targets to, and/or discuss how their targets align with, a long-term","page_number":232,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"0d8dcf7e-2174-49f9-a3b4-0e36a0e00532","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":232,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"4d40424e-2b42-4a3a-9e80-6b1f7ab2c40e","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"bc2ee54f-f118-4711-9e84-e1ec3b457e88","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":232,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"be469c4a-b93d-48e5-a3ce-637f384e2d2e","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"7c16e17c-0788-4aec-9edb-944de2148b3e","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":232,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"181bd919-8ee0-46f0-9cf8-f4f1d5cf274d","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":232,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"6db0d970-8689-42ca-9785-dfbaa26d04d5","block_type":"box","text":"25","page_number":232,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"3cd7bc08-fc98-4e80-89fc-d62c07ff7bc6","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":232,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"99f773f1-b997-40a2-87fc-c42b01030589","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":232,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"e539a07f-e958-4577-abe7-ba82f3205bea","block_type":"box","text":"RELATED MATTERS","page_number":232,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"770ecbeb-0fbd-418b-b08d-03995a5b87ce","block_type":"box","text":"There are other business items not covered above that may be put to a shareholder vote that could address","page_number":232,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"fcfdfb04-2b6f-4006-b392-528bb4764954","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":232,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"2cac5eb5-8e71-4c59-b9a7-a7452399dfbc","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. Generally, voting on these matters would","page_number":232,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"6a5d5a4d-cbc4-4465-b804-414b1d0a670f","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":232,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"1367900e-b1da-4377-8ec0-0c635cafdcac","block_type":"box","text":"Executive compensation","page_number":232,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"1bf1a3ef-c607-4a8e-9aff-8f01dcd8f1f2","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":232,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"7f5acedf-3473-463e-9fe4-063b53b06d53","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":232,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"23b235b0-b117-4912-8032-21348f1ccb30","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":232,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"80fa8b33-507d-49cf-998c-a8b51b8fb50f","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":232,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"d5280ed8-a8d2-4093-aab2-30a857b6869c","block_type":"box","text":"24","page_number":232,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"5d1d4cb9-4094-4b52-83b4-e95f5be88bf2","block_type":"box","text":"While the dedicated team may escalate voting by not suppor ting additional management proposals, principally","page_number":232,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"259deef4-c4eb-4245-af9f-178c1ee0bf9d","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":232,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"c238b5a9-801a-4e8a-87d6-02dd65600c50","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":232,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"766076ae-33a4-495a-8705-85582795a192","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":232,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"84217acb-72c4-431c-9b5f-481eff3a58c6","block_type":"box","text":"25","page_number":232,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"9ae4c0c4-3c50-49a8-a11d-46699dc661b5","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":232,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"f6bf7c75-e3ab-4a20-b7ff-9a61e5b88af5","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":232,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"2609e086-eb08-481a-b4c4-01c080f675ba","block_type":"box","text":"BlackRock Investment Stewardship","page_number":232,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"29f8202f-3010-40d1-b962-d7ba7af9b55f","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":232,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"4e31dcce-f07b-445d-a714-2b20ec13051d","block_type":"box","text":"BNM1026U-6032633-19203489","page_number":232,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3034cbcb-5eba-4e77-a097-4733183263c3","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":233,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"505bd474-2229-4bed-aa26-dc23016a5fd3","block_type":"box","text":"strategy and risk management.","page_number":233,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"024a4017-62eb-47fd-8694-00225ae30243","block_type":"box","text":"Auditors and audit-related issues","page_number":233,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"37c36e10-1d7d-44bd-9d60-0140ff287f35","block_type":"box","text":"For companies with material climate or transition risks or oppor tunities in their business models, the dedicated","page_number":233,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"a0f71566-bddd-4294-8fe6-314ce417891a","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":233,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"b511edd1-48c9-45de-9a29-1549559f9838","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":233,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"e47528a3-2b72-4fe2-b981-3c6b5b2ccc2d","block_type":"box","text":"context of its audit repor t. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":233,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"e38cb982-cdac-4391-8d09-2c7495e37bdb","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":233,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"5d83560f-f3a7-4158-b7af-379843bebf6c","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":233,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"4d4762fd-fd33-458a-84dd-3ba177fd912d","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":233,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"d99efd63-6355-4aef-85a1-3845acd8a973","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":233,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"bdc68375-9ce4-4204-8376-0425227c58ac","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":233,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"b670d434-2332-4147-aa54-d9385ffc021c","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":233,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"da0ed251-413a-4e49-a6e4-5e0c2d159d08","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":233,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"9da2a8c5-fcaa-4a94-97f7-45969944b947","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":233,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"363961b7-1e75-4372-9ee7-5b6355bfaaa9","block_type":"box","text":"sustainability-related risks and oppor tunities that may be relevant to a company’s business model and long-term","page_number":233,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"0f919f69-644c-4372-be7e-e1c3a09f97bc","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":233,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"b4eca229-98a1-480b-bff2-e5aeb6287848","block_type":"box","text":"stakeholders.","page_number":233,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"0350b6f4-94ea-4edb-b28d-ae3e073e3809","block_type":"box","text":"26","page_number":233,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"900046e2-393f-4009-a1d8-20aba24d569b","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":233,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"31d5c8d6-d679-4aef-aa47-12b3dd1e7c72","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":233,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"309f01b7-9b35-442a-9ef6-daae425a75a6","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. 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The economic transformation is being driven by changes in","page_number":234,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"345d28e3-7356-4c84-b795-a4f681429559","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":234,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"46bcc084-2617-477a-8383-b1672678fff7","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":234,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"75641c76-e61f-40b6-98fd-859042753fec","block_type":"box","text":"Decarbonization:","page_number":234,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"7eeb07da-79eb-478a-babc-5924f90d9c6c","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":234,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"ded556a7-3704-458f-8321-49b1ae5d0318","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":234,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"59009500-23b4-4fc9-9258-99ec4d5fab65","block_type":"box","text":"individual consumers. 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