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You may request a","page_number":15,"box":{"x":116,"y":595,"width":754,"height":12}},{"id":"247dcb68-23a3-4b5b-93de-9196d03787c6","block_type":"box","text":"copy of the 2025 Annual Financial Statements at no charge by calling (800) 537-4942 between","page_number":15,"box":{"x":117,"y":609,"width":750,"height":12}},{"id":"13e78347-62d7-412e-8425-70070e919ed5","block_type":"box","text":"8:00 a.m. and 6:00 p.m. Eastern time on any business day.","page_number":15,"box":{"x":117,"y":623,"width":455,"height":12}},{"id":"e80fdae5-5f71-48b7-a0f0-cf6783e60f2d","block_type":"box","text":"References to the Investment Company Act of 1940, as amended (the “Investment Company","page_number":15,"box":{"x":151,"y":645,"width":726,"height":12}},{"id":"9de44e05-a0be-43fb-bf43-fe854829a000","block_type":"box","text":"Act” or the “1940 Act”), or other applicable law, will include any rules promulgated thereunder","page_number":15,"box":{"x":116,"y":659,"width":734,"height":13}},{"id":"ce85f00e-cac3-4994-a0d8-62bbe6565e7f","block_type":"box","text":"and any guidance, interpretations or modifications by the Commission, Commission staff or","page_number":15,"box":{"x":117,"y":674,"width":723,"height":12}},{"id":"bc28e757-61e9-4dc5-bab5-5050bbe54d2c","block_type":"box","text":"other authority with appropriate jurisdiction, including court interpretations, and exemptive,","page_number":15,"box":{"x":117,"y":688,"width":722,"height":12}},{"id":"e0178be8-ef7e-4f3f-aec0-895271d4306d","block_type":"box","text":"no-action or other relief or permission from the Commission, Commission staff or other","page_number":15,"box":{"x":117,"y":702,"width":688,"height":12}},{"id":"d967799a-0163-4de1-8da7-0cce2e48475f","block_type":"box","text":"authority.","page_number":15,"box":{"x":117,"y":717,"width":74,"height":11}},{"id":"dd546749-a981-4cf8-9112-1c3f19960783","block_type":"box","text":"BlackRock Advisors, LLC (“BlackRock”) — Manager","page_number":15,"box":{"x":168,"y":767,"width":665,"height":20}},{"id":"dcc860cf-5865-4cb9-8d10-e49fc29889bd","block_type":"box","text":"BlackRock Investments, LLC (“BRIL”) — Distributor","page_number":15,"box":{"x":166,"y":790,"width":669,"height":19}},{"id":"076988e0-5568-45b1-8d36-66e1becb1423","block_type":"box","text":"The date of this Statement of Additional Information is May 1, 2026.","page_number":15,"box":{"x":232,"y":846,"width":534,"height":12}},{"id":"02a5b2cb-4b7a-4fcd-b5b5-e149581d4a9a","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":15,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"38008ee5-4075-4ba0-9a4e-5d074d676ba7","block_type":"box","text":"TABLE OF CONTENTS","page_number":16,"box":{"x":407,"y":79,"width":185,"height":10}},{"id":"7af26c35-343c-4f56-8469-e4ac49b7b64a","block_type":"box","text":"Page","page_number":16,"box":{"x":848,"y":125,"width":26,"height":10}},{"id":"66c6da20-ad7e-4496-ac46-604e09ecfc51","block_type":"box","text":"PART I","page_number":16,"box":{"x":124,"y":141,"width":56,"height":9}},{"id":"5a915a25-726e-4f5b-9d62-254d342afce7","block_type":"box","text":"Investment Objectives and Policies","page_number":16,"box":{"x":125,"y":158,"width":249,"height":13}},{"id":"45d24137-0156-487b-abca-7686b0bab083","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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I-32","page_number":16,"box":{"x":407,"y":267,"width":476,"height":9}},{"id":"4c96bc46-cd2b-4f91-a098-c6e4d3c76bf2","block_type":"box","text":"Purchase of Shares","page_number":16,"box":{"x":125,"y":284,"width":134,"height":10}},{"id":"b18fbc43-69a6-48a7-a410-06cc7bead1e9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-36","page_number":16,"box":{"x":273,"y":285,"width":610,"height":9}},{"id":"2743a89e-2955-46bb-b35c-26909f01c923","block_type":"box","text":"Special Tax Rules Applicable to Variable Contracts","page_number":16,"box":{"x":125,"y":302,"width":372,"height":13}},{"id":"fa0ab9f7-7f3c-4234-be61-4c523225ad5d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-37","page_number":16,"box":{"x":514,"y":303,"width":369,"height":9}},{"id":"c54b7509-5021-4d07-b0de-9a0002f2dd03","block_type":"box","text":"Additional Information","page_number":16,"box":{"x":124,"y":320,"width":170,"height":10}},{"id":"02dff7e7-ef9b-476c-8b48-88a790a9cf5f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-39","page_number":16,"box":{"x":300,"y":321,"width":582,"height":9}},{"id":"c77d44ae-fde0-46ec-9543-85461947e45a","block_type":"box","text":"Financial Statements","page_number":16,"box":{"x":125,"y":338,"width":148,"height":10}},{"id":"b844537e-5484-4f96-ba45-849abb15900f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-42","page_number":16,"box":{"x":282,"y":339,"width":601,"height":9}},{"id":"24c37469-6ac4-4fb3-84f2-a1f7611af488","block_type":"box","text":"PART II (All Portfolios Except the Government Money Market Portfolio and Global Allocation \r\nfli)","page_number":16,"box":{"x":124,"y":383,"width":697,"height":13}},{"id":"b8126481-0125-43ae-8de5-c98218de0f58","block_type":"box","text":"(\r\nPortfolio)","page_number":16,"box":{"x":141,"y":395,"width":69,"height":12}},{"id":"b47bfb7a-de0e-492b-8f88-b4e320d8198a","block_type":"box","text":"Investment Risks and Considerations","page_number":16,"box":{"x":125,"y":413,"width":268,"height":10}},{"id":"a3e9cdf4-40c0-466d-a48f-e546dade8a3b","block_type":"box","text":"................................................","page_number":16,"box":{"x":407,"y":422,"width":422,"height":1}},{"id":"7e9e0c1e-46cb-4065-97b2-51b267629acb","block_type":"box","text":"II-1","page_number":16,"box":{"x":858,"y":414,"width":24,"height":9}},{"id":"ddbc3691-b471-4447-842e-0ed4762d23bc","block_type":"box","text":"Management and Other Service Arrangements","page_number":16,"box":{"x":124,"y":431,"width":336,"height":13}},{"id":"23d39f7a-c896-4578-bf65-a32ad69e280e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-101","page_number":16,"box":{"x":479,"y":432,"width":403,"height":9}},{"id":"05f2b898-f799-4c8a-ab72-d008970e736d","block_type":"box","text":"Selective Disclosure of Portfolio Holdings","page_number":16,"box":{"x":125,"y":449,"width":301,"height":13}},{"id":"2dfe6798-5e32-49b8-b9ed-14e4c116abeb","block_type":"box","text":"............................................","page_number":16,"box":{"x":443,"y":458,"width":386,"height":1}},{"id":"5c12e452-1d1c-4293-b876-59d43534c13b","block_type":"box","text":"II-104","page_number":16,"box":{"x":839,"y":450,"width":44,"height":9}},{"id":"9ab97885-a2f0-4bd5-95d6-18097359a023","block_type":"box","text":"Purchase of Shares","page_number":16,"box":{"x":125,"y":467,"width":134,"height":10}},{"id":"cad73ed4-fd2b-4c0e-ba08-62bd71611579","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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II-171","page_number":16,"box":{"x":407,"y":594,"width":475,"height":9}},{"id":"1f92d155-fb45-4534-ad95-b60a83ce570c","block_type":"box","text":"General Information","page_number":16,"box":{"x":125,"y":611,"width":148,"height":10}},{"id":"34d4b08e-be71-485e-add6-050b62a981b0","block_type":"box","text":".............................................................","page_number":16,"box":{"x":291,"y":620,"width":538,"height":1}},{"id":"4729e400-e195-4102-9e15-fd8c2431d717","block_type":"box","text":"II-172","page_number":16,"box":{"x":839,"y":612,"width":44,"height":9}},{"id":"da5b9765-ce79-47e1-9e54-07d89f478e3c","block_type":"box","text":"Appendix A — Description of Bond Ratings","page_number":16,"box":{"x":124,"y":629,"width":320,"height":13}},{"id":"02340d01-c899-4d6c-80ab-9a1b124e39bd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1","page_number":16,"box":{"x":461,"y":630,"width":421,"height":9}},{"id":"cae3bdd2-3d63-4a1e-9b76-0c7ceb92f091","block_type":"box","text":"Appendix B — Proxy Voting Policies","page_number":16,"box":{"x":124,"y":647,"width":268,"height":13}},{"id":"d768a649-e340-4616-a9a6-996de99e6960","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1","page_number":16,"box":{"x":407,"y":648,"width":475,"height":9}},{"id":"bcf9b632-c192-4485-aa85-70327a3acbde","block_type":"box","text":"PART II (Government Money Market Portfolio)","page_number":16,"box":{"x":124,"y":692,"width":352,"height":13}},{"id":"24bed05b-620c-46f6-b73d-5370b9408859","block_type":"box","text":"Investment Risks and Considerations","page_number":16,"box":{"x":125,"y":710,"width":268,"height":10}},{"id":"dd041fc3-18df-4607-a7a5-f2f14623e553","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-1","page_number":16,"box":{"x":407,"y":711,"width":475,"height":9}},{"id":"5084c59e-8a3d-4f8c-bb97-8274a65465cb","block_type":"box","text":"Management and Other Service Arrangements","page_number":16,"box":{"x":124,"y":728,"width":336,"height":13}},{"id":"fc1a25e3-1885-465e-9c3f-c120b25e9b8a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-15","page_number":16,"box":{"x":470,"y":729,"width":412,"height":9}},{"id":"81bb4e00-fb74-44eb-a78d-2cad00e6e4ba","block_type":"box","text":"Purchase of Shares","page_number":16,"box":{"x":125,"y":746,"width":134,"height":10}},{"id":"6b26c45d-1773-4d39-b9b1-b8ba1a7cfcd0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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II-56","page_number":16,"box":{"x":300,"y":819,"width":583,"height":9}},{"id":"1ed1df9a-c806-480b-b57c-e766fe24f900","block_type":"box","text":"Dividends and Taxes","page_number":16,"box":{"x":125,"y":836,"width":151,"height":10}},{"id":"11bdfc5a-180f-4027-9eb0-8761f73c2aff","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-57","page_number":16,"box":{"x":282,"y":837,"width":601,"height":9}},{"id":"184e46b3-bf04-420a-a9aa-1f79b81179c5","block_type":"box","text":"Proxy Voting Policies and Procedures","page_number":16,"box":{"x":125,"y":854,"width":271,"height":13}},{"id":"c554a851-58de-4a4d-a727-174092e0e8a8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-61","page_number":16,"box":{"x":407,"y":855,"width":475,"height":9}},{"id":"f3e85fd7-30d7-4765-b35b-0343240e24cc","block_type":"box","text":"General Information","page_number":16,"box":{"x":125,"y":872,"width":148,"height":10}},{"id":"7bbbbfe5-fec5-4297-84a1-2140a2c3d73f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-61","page_number":16,"box":{"x":282,"y":873,"width":600,"height":9}},{"id":"0513022c-1423-4e44-9f42-616006303e26","block_type":"box","text":"Appendix A — Description of Bond Ratings","page_number":16,"box":{"x":124,"y":890,"width":320,"height":13}},{"id":"9775409c-87cd-4da2-a2e3-32776de0170b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1","page_number":16,"box":{"x":452,"y":891,"width":430,"height":9}},{"id":"d28c6b34-32d4-4b9f-b5f6-1b7975031426","block_type":"box","text":"Appendix B — Proxy Voting Policies","page_number":16,"box":{"x":124,"y":908,"width":268,"height":13}},{"id":"8c57a354-1a57-49d1-8305-9123f5c034c1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1","page_number":16,"box":{"x":398,"y":909,"width":484,"height":9}},{"id":"fe5654b1-caf7-4459-90a5-86160bd8da2c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":16,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e2b66046-d708-4471-8bfd-515de55ce0be","block_type":"box","text":"Page","page_number":17,"box":{"x":848,"y":125,"width":26,"height":10}},{"id":"a3cccb3d-c404-4f73-953a-c0ae56153c65","block_type":"box","text":"PART II (Global Allocation Portfolio)","page_number":17,"box":{"x":124,"y":149,"width":276,"height":12}},{"id":"0e5f279a-1d34-4f06-a38d-6d275cb246c8","block_type":"box","text":"Investment Risks and Considerations","page_number":17,"box":{"x":125,"y":170,"width":268,"height":10}},{"id":"c808830e-4180-4775-acf6-6b107b4edead","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-1","page_number":17,"box":{"x":407,"y":171,"width":475,"height":9}},{"id":"540c7a77-a52b-42fb-b9b6-2ffc9207a943","block_type":"box","text":"Management and Other Service Arrangements","page_number":17,"box":{"x":124,"y":191,"width":336,"height":13}},{"id":"8fc3bacd-11cd-470a-bff4-1b23877f796f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-103","page_number":17,"box":{"x":470,"y":192,"width":412,"height":9}},{"id":"ba6414a4-7bd5-43ef-8a12-5d19339e80fe","block_type":"box","text":"Selective Disclosure of Portfolio Holdings","page_number":17,"box":{"x":125,"y":212,"width":301,"height":13}},{"id":"cfb39bca-8d13-42a0-b5ff-aa7a3144a26e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-106","page_number":17,"box":{"x":434,"y":213,"width":449,"height":10}},{"id":"3d8ab994-d948-4ae8-a224-5317f2e3550d","block_type":"box","text":"Purchase of Shares","page_number":17,"box":{"x":125,"y":234,"width":134,"height":10}},{"id":"728f10de-b6be-4ac7-8a10-3f193bb355a1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-124","page_number":17,"box":{"x":273,"y":235,"width":610,"height":9}},{"id":"c81f1d60-b072-4548-819e-89972f0f461f","block_type":"box","text":"Redemption of Shares","page_number":17,"box":{"x":125,"y":255,"width":158,"height":13}},{"id":"fe8b6499-0e98-4293-9b35-2ea7871d62a6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-144","page_number":17,"box":{"x":291,"y":256,"width":592,"height":9}},{"id":"412a10dc-a54c-4c83-8d24-f7456d825ad0","block_type":"box","text":"Shareholder Services","page_number":17,"box":{"x":125,"y":276,"width":147,"height":11}},{"id":"4b1f281e-ce1c-4249-be9b-cec9287b9718","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-148","page_number":17,"box":{"x":282,"y":277,"width":600,"height":10}},{"id":"7441d37a-0490-4eec-a4c5-208421ca95ff","block_type":"box","text":"Pricing of Shares","page_number":17,"box":{"x":125,"y":298,"width":120,"height":13}},{"id":"e432b2a2-8553-4035-ae63-49b2ff15fe3b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-153","page_number":17,"box":{"x":256,"y":299,"width":626,"height":9}},{"id":"1ff9f3d8-af1b-4d13-8a16-4a298d8b8a65","block_type":"box","text":"Portfolio Transactions and Brokerage","page_number":17,"box":{"x":125,"y":319,"width":272,"height":13}},{"id":"6d0c14f4-82eb-4c6d-bd64-fa45bf7ef648","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-156","page_number":17,"box":{"x":407,"y":320,"width":476,"height":9}},{"id":"b5133332-ccd2-4343-b783-459f7fb253a4","block_type":"box","text":"Dividends and Taxes","page_number":17,"box":{"x":125,"y":340,"width":151,"height":10}},{"id":"452f4541-453f-488d-8612-6b9a196cf7d3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-161","page_number":17,"box":{"x":282,"y":341,"width":600,"height":9}},{"id":"f8ceba39-7e5a-4799-8c87-74f8b790201a","block_type":"box","text":"Performance Data","page_number":17,"box":{"x":125,"y":362,"width":130,"height":10}},{"id":"42a969b8-cedf-4cd3-902d-eb2fb888f0ef","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-171","page_number":17,"box":{"x":265,"y":362,"width":617,"height":10}},{"id":"6b3f6558-dbd2-49a7-b3d5-c3ba246a3140","block_type":"box","text":"Proxy Voting Policies and Procedures","page_number":17,"box":{"x":125,"y":383,"width":271,"height":13}},{"id":"5a73e286-6768-4469-a54b-f4e02840a081","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-173","page_number":17,"box":{"x":407,"y":384,"width":475,"height":9}},{"id":"71a4e049-1e0e-4851-9ec3-a601b3c1e551","block_type":"box","text":"General Information","page_number":17,"box":{"x":125,"y":404,"width":148,"height":10}},{"id":"27c68f09-9eae-476e-be77-672fc9255c08","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-174","page_number":17,"box":{"x":282,"y":405,"width":601,"height":9}},{"id":"0b84a7f9-fe1d-4962-861b-8a2c730a030a","block_type":"box","text":"Appendix A — Description of Bond Ratings","page_number":17,"box":{"x":124,"y":426,"width":320,"height":12}},{"id":"a39a433e-5170-481a-9bd5-f45fa8dba9c1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1","page_number":17,"box":{"x":452,"y":426,"width":430,"height":10}},{"id":"8c45469a-3400-46a9-9779-ea5cb8b72b3c","block_type":"box","text":"Appendix B — Proxy Voting Policies","page_number":17,"box":{"x":124,"y":447,"width":268,"height":13}},{"id":"0cffd71f-6cc0-4256-82b7-c42df5af9fea","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1","page_number":17,"box":{"x":398,"y":448,"width":484,"height":9}},{"id":"9380eb71-0b23-4d55-afcb-d763bc279b65","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":17,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e9351978-224c-4ee4-be7f-8fb243ae4eae","block_type":"box","text":"P","page_number":18,"box":{"x":339,"y":80,"width":10,"height":10}},{"id":"e609f17b-79a4-4049-b531-6995e5766cca","block_type":"box","text":"ART","page_number":18,"box":{"x":349,"y":83,"width":26,"height":7}},{"id":"d1d692b1-ce42-4c9b-b99e-ea500ce7fd7a","block_type":"box","text":"I: I","page_number":18,"box":{"x":380,"y":80,"width":22,"height":10}},{"id":"750ed8d1-137f-4e04-8efe-9ba240253e12","block_type":"box","text":"NFORMATION","page_number":18,"box":{"x":403,"y":83,"width":86,"height":7}},{"id":"401755d5-878e-4b35-8cf8-49fc218d2ab4","block_type":"box","text":"A","page_number":18,"box":{"x":495,"y":80,"width":13,"height":10}},{"id":"43e483f7-da49-4c88-b065-b6d021c622bc","block_type":"box","text":"BOUT THE","page_number":18,"box":{"x":508,"y":83,"width":66,"height":7}},{"id":"5a2fb7a0-c986-4b40-8d70-28ee8b1ba4bf","block_type":"box","text":"P","page_number":18,"box":{"x":580,"y":80,"width":10,"height":10}},{"id":"b8cc66ac-e449-49a1-9475-8bf3c8a234b3","block_type":"box","text":"ORTFOLIOS","page_number":18,"box":{"x":590,"y":83,"width":69,"height":7}},{"id":"59315a64-728f-4448-9c05-d99a88b17d84","block_type":"box","text":"Part I of this Statement of Additional Information (“SAI”) sets forth information about each Portfolio. It","page_number":18,"box":{"x":116,"y":106,"width":725,"height":12}},{"id":"dac72861-ac4c-4ba6-8e98-20bb5845a33d","block_type":"box","text":"includes information about the Fund’s Board of Directors (the “Board” or the “Board of Directors”), the","page_number":18,"box":{"x":116,"y":121,"width":728,"height":13}},{"id":"b5d41eed-9916-45a7-bacb-91e59d1735be","block_type":"box","text":"management services provided to and the management fees paid by each Portfolio and information about","page_number":18,"box":{"x":116,"y":137,"width":732,"height":13}},{"id":"144b0206-049e-488b-97b6-8a3aeefe682b","block_type":"box","text":"other fees applicable to and services provided to each Portfolio. This Part I of this SAI should be read in","page_number":18,"box":{"x":116,"y":152,"width":718,"height":13}},{"id":"d6a9a4bf-faf7-4aba-baf9-213d4abecc12","block_type":"box","text":"conjunction with each Portfolio’s Prospectus and those portions of Part II of this SAI that pertain to the","page_number":18,"box":{"x":116,"y":168,"width":717,"height":13}},{"id":"7f0cfdd8-e733-47dd-9956-6f068afad242","block_type":"box","text":"Portfolios.","page_number":18,"box":{"x":116,"y":183,"width":71,"height":10}},{"id":"4c36d9c7-7279-483a-bd91-d20e05213691","block_type":"box","text":"Shares of each Portfolio are sold to separate accounts (“Separate Accounts”) of insurance companies","page_number":18,"box":{"x":116,"y":207,"width":697,"height":12}},{"id":"9468e49b-1472-4236-8890-aa70744510f0","block_type":"box","text":"(“Insurance Companies”) to fund certain variable life insurance and/or variable annuity contracts (together,","page_number":18,"box":{"x":117,"y":222,"width":746,"height":13}},{"id":"f9c77e05-ef45-424f-a55c-f2c136aa87dd","block_type":"box","text":"“Contracts”) issued by such companies. Certain Insurance Companies may be affiliates of the Manager. The","page_number":18,"box":{"x":117,"y":238,"width":752,"height":12}},{"id":"43d640ec-60f0-499e-b324-81bbe4dab9a6","block_type":"box","text":"rights of the Insurance Companies as shareholders should be distinguished from the rights of a Contract","page_number":18,"box":{"x":116,"y":253,"width":721,"height":13}},{"id":"648b307b-24a3-4994-888f-e0a2d7f1d388","block_type":"box","text":"owner, which are set forth in the Contract. A Contract owner has no interest in the shares of each Portfolio,","page_number":18,"box":{"x":116,"y":269,"width":749,"height":12}},{"id":"52630f47-be1c-4877-ac35-7a9ad9d27c0a","block_type":"box","text":"but only in the Contract. A Contract is described in the prospectus for that Contract. That prospectus","page_number":18,"box":{"x":116,"y":284,"width":705,"height":13}},{"id":"bcc971cc-c058-404f-af80-d6d3274635a0","block_type":"box","text":"describes the relationship between increases or decreases in the net asset value of shares of each Portfolio, and","page_number":18,"box":{"x":116,"y":300,"width":760,"height":13}},{"id":"51fb74c0-c685-4bcd-871c-5eb896afb856","block_type":"box","text":"any distributions on such shares, and the benefits provided under a Contract. The prospectus for the","page_number":18,"box":{"x":116,"y":315,"width":695,"height":13}},{"id":"554922b8-4896-4d0c-90a1-102b21dd1792","block_type":"box","text":"Contracts also describes various fees payable to the Insurance Companies and charges to the Separate","page_number":18,"box":{"x":117,"y":331,"width":703,"height":13}},{"id":"f41c3f94-32e9-4848-be2d-c64cfaa1a3a4","block_type":"box","text":"Accounts made by the Insurance Companies with respect to the Contracts. Since shares of the Portfolios will","page_number":18,"box":{"x":116,"y":346,"width":752,"height":13}},{"id":"ee6e4028-cba6-4af3-b8b9-65507255bbf1","block_type":"box","text":"be sold only to the Insurance Companies for the Separate Accounts, the terms “shareholder” and","page_number":18,"box":{"x":116,"y":362,"width":673,"height":13}},{"id":"ef262e24-dc57-4397-aca9-48649c907285","block_type":"box","text":"“shareholders” in this SAI refer to the Insurance Companies.","page_number":18,"box":{"x":117,"y":377,"width":420,"height":13}},{"id":"27572849-795d-4983-8b66-e2808896ba4d","block_type":"box","text":"I. Investment Objectives and Policies","page_number":18,"box":{"x":116,"y":406,"width":317,"height":12}},{"id":"45d9566c-f613-4164-814d-12e92e6f0331","block_type":"box","text":"The investment objective of each Portfolio is included in its Prospectus.","page_number":18,"box":{"x":116,"y":431,"width":491,"height":13}},{"id":"40b21d45-bd32-4413-baf1-5af6e1899a20","block_type":"box","text":"The Portfolios that are subject to Rule 35d-1 under the Investment Company Act will not change their","page_number":18,"box":{"x":116,"y":455,"width":710,"height":13}},{"id":"f10748fb-e5d2-40f8-81c8-608fcb3baf6a","block_type":"box","text":"investment policies required by that rule without giving shareholders 60 days’ prior written notice.","page_number":18,"box":{"x":116,"y":470,"width":682,"height":13}},{"id":"ee70876b-0d74-46c0-ab81-0d16807801a7","block_type":"box","text":"Set forth below is a listing of some of the types of investments and investment strategies that a Portfolio may","page_number":18,"box":{"x":116,"y":494,"width":751,"height":12}},{"id":"87b24a72-054d-41d3-9b95-246bd621f19e","block_type":"box","text":"use, and the risks and considerations associated with those investments and investment strategies. Please see","page_number":18,"box":{"x":116,"y":509,"width":746,"height":13}},{"id":"5389cbdb-74e5-4dfd-81c2-623adbb57788","block_type":"box","text":"Part II of this SAI for further information on these investments and investment strategies. Information","page_number":18,"box":{"x":116,"y":525,"width":705,"height":12}},{"id":"8ce9c82a-6c09-4b37-94fc-81271dbb737a","block_type":"box","text":"contained in Part II about the risks and considerati","page_number":18,"box":{"x":116,"y":540,"width":351,"height":10}},{"id":"b81cf616-0eff-4d26-b4d5-16a658140163","block_type":"box","text":"ons associated with investments and/or investment","page_number":18,"box":{"x":468,"y":540,"width":350,"height":10}},{"id":"d24e0249-5c8a-4832-b920-c9629172f9ff","block_type":"box","text":"strategies applies only to the extent a Portfolio makes each type of investment or uses each investment","page_number":18,"box":{"x":116,"y":556,"width":706,"height":12}},{"id":"fb75b28e-37b3-4d3f-bb08-7f400f74ae19","block_type":"box","text":"strategy. 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BlackRock has no transparency into the holdings of these","page_number":25,"box":{"x":116,"y":141,"width":695,"height":13}},{"id":"bb844ab4-9889-4f94-8de8-b841764a4db5","block_type":"box","text":"underlying funds because they are not advised by BlackRock. To address this issue of lack of transparency, the","page_number":25,"box":{"x":116,"y":156,"width":766,"height":13}},{"id":"db311d33-97a3-4fe3-9d2c-11db2ad97193","block_type":"box","text":"CFTC staff issued a no-action letter on November 29, 2012 permitting the adviser of a fund that invests in","page_number":25,"box":{"x":117,"y":172,"width":738,"height":13}},{"id":"8414120a-fdb3-4c08-8184-d37d297ad1d4","block_type":"box","text":"such underlying funds and that would otherwise have filed a claim of exclusion pursuant to Rule 4.5 to delay","page_number":25,"box":{"x":116,"y":187,"width":758,"height":13}},{"id":"d04df0f3-d836-4773-b989-bffa9dcd3391","block_type":"box","text":"registration as a “commodity pool operator” until six months from the date on which the CFTC issues","page_number":25,"box":{"x":116,"y":203,"width":713,"height":13}},{"id":"aa3c5e55-f373-4bfe-aeec-e1fdb5494454","block_type":"box","text":"additional guidance on the treatment of CFTC Derivatives held by underlying funds. 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Accordingly, BlackRock is not subject to registration or regulation as a","page_number":25,"box":{"x":116,"y":249,"width":706,"height":13}},{"id":"48f7f1e3-e49d-4fdd-95c1-bb24d1f1d421","block_type":"box","text":"“commodity pool operator” under the CEA in respect of such Portfolios.","page_number":25,"box":{"x":117,"y":265,"width":505,"height":13}},{"id":"29934500-5e87-4384-be6c-09e46e9cfbd2","block_type":"box","text":"Global Allocation Portfolio’s primary vehicle for gaining exposure to the commodities markets is expected to","page_number":25,"box":{"x":117,"y":290,"width":755,"height":12}},{"id":"82bef831-50bf-4deb-bf65-227513b8dcb8","block_type":"box","text":"be through investments in BlackRock Cayman Global Allocation Portfolio I, Ltd., a wholly owned subsidiary","page_number":25,"box":{"x":116,"y":305,"width":759,"height":13}},{"id":"a98937a9-29c8-4302-b8a5-08c798022350","block_type":"box","text":"of Global Allocation Portfolio formed in the Cayman","page_number":25,"box":{"x":116,"y":321,"width":370,"height":12}},{"id":"721263d9-b63a-465e-87ad-e78241c2a0b1","block_type":"box","text":"Islands (the “Global Allocation Subsidiary” or the","page_number":25,"box":{"x":491,"y":321,"width":348,"height":12}},{"id":"4eb26c19-edf6-40b8-af91-2993fea78a18","block_type":"box","text":"“Subsidiary”), which invests primarily in commodity-related instruments. 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The Subsidiary will also enter into separate contracts for the provision of","page_number":25,"box":{"x":116,"y":783,"width":701,"height":12}},{"id":"97292fff-228a-45ca-974c-95d9ccd85d0e","block_type":"box","text":"advisory, sub-advisory, custody and accounting agent services with the same or with affiliates of the same","page_number":25,"box":{"x":116,"y":798,"width":732,"height":13}},{"id":"3fc8228b-3df6-4fa0-83fd-a13aa924c336","block_type":"box","text":"service providers that provide those services to Global Allocation Portfolio.","page_number":25,"box":{"x":116,"y":814,"width":520,"height":12}},{"id":"747f64af-5911-4242-a7d8-86d074d224d5","block_type":"box","text":"The financial statements of the Global Allocation Subsid","page_number":25,"box":{"x":116,"y":838,"width":392,"height":11}},{"id":"2717a273-8075-434d-a52a-472dd6d87fe8","block_type":"box","text":"iary will be consolidated with the financial statements","page_number":25,"box":{"x":509,"y":838,"width":372,"height":13}},{"id":"1bc467f9-7e23-4348-864e-5177cc53d602","block_type":"box","text":"in the Annual and Semi-Annual Financial Statements and Additional Information filed on Form N-CSR of","page_number":25,"box":{"x":116,"y":854,"width":738,"height":10}},{"id":"bd648cae-6963-41da-8ad0-e598a37e28ec","block_type":"box","text":"Global Allocation Portfolio.","page_number":25,"box":{"x":117,"y":869,"width":193,"height":11}},{"id":"2bb9e829-574b-40be-bb32-8bf22bfa4a60","block_type":"box","text":"I-8","page_number":25,"box":{"x":490,"y":917,"width":18,"height":9}},{"id":"352c8812-dd5f-4492-915d-d8302e6970b1","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":25,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"6a8f49e6-9463-4c62-be68-049a61018fbd","block_type":"box","text":"The Annual and Semi-Annual Reports are distributed to shareholders. Copies of the Annual and Semi-Annual","page_number":26,"box":{"x":116,"y":79,"width":763,"height":13}},{"id":"a9ba816f-cb64-48b4-9cf9-1b6c4b27c821","block_type":"box","text":"Financial Statements and Additional Information a","page_number":26,"box":{"x":116,"y":94,"width":353,"height":10}},{"id":"674537a1-595a-4a9d-b1cc-9c7952e8d12f","block_type":"box","text":"nd Annual and Semi-Annual Reports are provided without","page_number":26,"box":{"x":469,"y":94,"width":409,"height":13}},{"id":"84304180-a3e5-452f-b1cd-a4cbe6914e84","block_type":"box","text":"charge upon request as indicated on the front cover of this SAI.","page_number":26,"box":{"x":116,"y":110,"width":437,"height":13}},{"id":"a9965897-325b-4003-96de-ab2dce5f22c0","block_type":"box","text":"The Subsidiary is not registered under the Investment Company Act, and, unless otherwise noted in Global","page_number":26,"box":{"x":116,"y":134,"width":741,"height":13}},{"id":"d536aeff-53f8-4875-9ece-74ab7f90120a","block_type":"box","text":"Allocation Portfolio’s Prospectus or this SAI, is not subject to all the investor protections of the Investment","page_number":26,"box":{"x":116,"y":149,"width":738,"height":13}},{"id":"86c9a185-0a1e-478e-a86b-057a343bc0d9","block_type":"box","text":"Company Act. However, Global Allocation Portfolio","page_number":26,"box":{"x":117,"y":165,"width":368,"height":13}},{"id":"4105cbb8-aaea-45d3-ad7d-358166dfe1a6","block_type":"box","text":"wholly owns and controls the Global Allocation","page_number":26,"box":{"x":490,"y":165,"width":334,"height":13}},{"id":"bdec3ecb-f316-4e32-8dea-654b52fa8665","block_type":"box","text":"Subsidiary and the Portfolio and Subsidiary are managed by the Manager, making it unlikely that the","page_number":26,"box":{"x":116,"y":180,"width":702,"height":13}},{"id":"76c343fe-86fb-4f0e-842b-1ff6cd4d81f5","block_type":"box","text":"Subsidiary will take action contrary to the interests of the Portfolio and its shareholders. The Fund’s Board of","page_number":26,"box":{"x":116,"y":196,"width":759,"height":13}},{"id":"820cc991-d5c2-4db5-bfba-629906e1dc54","block_type":"box","text":"Directors has oversight responsibility for the investment activities of Global Allocation Portfolio, including","page_number":26,"box":{"x":116,"y":211,"width":738,"height":13}},{"id":"4dc5be6b-cbe6-4f11-bd24-724d8d3d4e2e","block_type":"box","text":"with respect to the Portfolio’s investment in the Subsidiary","page_number":26,"box":{"x":116,"y":227,"width":405,"height":13}},{"id":"a60a69e9-77d8-4c64-bfdd-77d94e3b85e9","block_type":"box","text":", and the Portfolio’s role as sole shareholder of the","page_number":26,"box":{"x":522,"y":227,"width":347,"height":12}},{"id":"275893e4-32e9-4262-8548-113c7df7f3f7","block_type":"box","text":"Subsidiary. As noted above, the Subsidiary will be subject to the same investment restrictions and limitations,","page_number":26,"box":{"x":116,"y":242,"width":756,"height":13}},{"id":"a2ef977e-6ab4-438d-8d66-3d1a6b9c2d23","block_type":"box","text":"and follow the same compliance policies and procedures, as Global Allocation Portfolio. The Subsidiary is","page_number":26,"box":{"x":116,"y":258,"width":736,"height":13}},{"id":"e9a9c4ec-c675-4232-8cfb-2b8df4d682eb","block_type":"box","text":"managed pursuant to compliance policies and procedures that are the same, in all material respects, as the","page_number":26,"box":{"x":116,"y":273,"width":734,"height":13}},{"id":"e894d3f0-8492-4931-b31a-a131c92336c5","block_type":"box","text":"policies and procedures adopted by the Fund. In addition, changes in the laws of the United States and/or the","page_number":26,"box":{"x":116,"y":289,"width":755,"height":13}},{"id":"8ff6e51d-f495-45f7-b6b1-1406c3314696","block_type":"box","text":"Cayman Islands could result in the inability of Global A","page_number":26,"box":{"x":117,"y":304,"width":387,"height":13}},{"id":"7ce6c61c-5225-49d1-8f95-96873054649e","block_type":"box","text":"llocation Portfolio and/or the Subsidiary to operate as","page_number":26,"box":{"x":505,"y":304,"width":372,"height":13}},{"id":"17cfb4d4-e829-4dfd-b4f9-f8b31c8c0746","block_type":"box","text":"described in Global Allocation Portfolio’s Prospectus and this SAI, and could adversely affect Global","page_number":26,"box":{"x":116,"y":320,"width":697,"height":13}},{"id":"d3543f98-a4e0-497b-851c-24a3cc0dabae","block_type":"box","text":"Allocation Portfolio. For example, the Cayman Islands does not currently impose any income, corporate or","page_number":26,"box":{"x":116,"y":335,"width":744,"height":13}},{"id":"5de2e327-ff6d-4fa5-8fc2-84a524c7e76f","block_type":"box","text":"capital gains tax, estate duty, inheritance tax, gift tax or withholding tax on the Subsidiary. If Cayman Islands","page_number":26,"box":{"x":116,"y":351,"width":762,"height":13}},{"id":"2e636cb9-b0c9-4c41-ab92-1c930e2bd34a","block_type":"box","text":"law changes such that the Subsidiary must pay Cayman Islands taxes, shareholders of Global Allocation","page_number":26,"box":{"x":116,"y":366,"width":722,"height":13}},{"id":"3fc28ce2-a71f-4593-9679-da93610f5016","block_type":"box","text":"Portfolio would likely suffer decreased investment returns.","page_number":26,"box":{"x":116,"y":382,"width":403,"height":13}},{"id":"9c4ceb5c-38bc-472e-9c95-01919764be57","block_type":"box","text":"The Subsidiary will not be subject to U.S. federal income tax. The Subsidiary will, however, be considered a","page_number":26,"box":{"x":116,"y":406,"width":747,"height":13}},{"id":"fd70fc22-7a41-4487-9b1a-08d42c5c7774","block_type":"box","text":"controlled foreign corporation, and Global Allocation Portfolio will be required to include as income annually","page_number":26,"box":{"x":116,"y":422,"width":765,"height":12}},{"id":"a3ca9b75-2234-4f71-b5db-3c126a4ea45e","block_type":"box","text":"amounts earned by the Subsidiary during that year, whether or not the Subsidiary distributes such amounts to","page_number":26,"box":{"x":116,"y":437,"width":762,"height":13}},{"id":"7e584c8e-7206-427a-86c0-f6fec3a756be","block_type":"box","text":"the Portfolio. Gains from the sales of investments by the Subsidiary will not be eligible for capital gains","page_number":26,"box":{"x":116,"y":453,"width":713,"height":12}},{"id":"acd19c89-217b-4875-bf1d-16f8575267c5","block_type":"box","text":"treatment but instead will be treated as ordinary income when included in income by the Portfolio.","page_number":26,"box":{"x":116,"y":468,"width":684,"height":13}},{"id":"d87a3343-c28e-4be9-b402-5c82639dfd13","block_type":"box","text":"Furthermore, the requirement for the Portfolio to distribute net investment income, if any, and net realized","page_number":26,"box":{"x":116,"y":484,"width":739,"height":12}},{"id":"f5e54a60-4896-4a41-a319-282bd089ae02","block_type":"box","text":"capital gain, if any, at least annually will apply to such Subsidiary income, whether or not the Subsidiary","page_number":26,"box":{"x":116,"y":499,"width":725,"height":13}},{"id":"f8643d0d-e74b-4b7d-b676-7f543470d693","block_type":"box","text":"makes a distribution to the Portfolio during the taxable year. If the Subsidiary incurs net losses in any year,","page_number":26,"box":{"x":116,"y":515,"width":740,"height":12}},{"id":"46dc730b-e0c7-4fab-8bcf-9c084c290d5e","block_type":"box","text":"such losses will not offset the Portfolio’s income or gains nor carryforward to future years.","page_number":26,"box":{"x":116,"y":530,"width":626,"height":13}},{"id":"4c71bd2b-c03f-4230-84db-47d424c69c05","block_type":"box","text":"II. Investment Restrictions","page_number":26,"box":{"x":116,"y":557,"width":237,"height":9}},{"id":"0fbba030-bda6-4e47-a83b-de399a85a1a8","block_type":"box","text":"The Fund has adopted the following fundamental and non-fundamental restrictions and policies relating to","page_number":26,"box":{"x":116,"y":580,"width":743,"height":13}},{"id":"6f946db6-bead-416d-ad3e-c0e4d6246d66","block_type":"box","text":"the investment of the assets of the Portfolios and their activities. The fundamental policies set forth below may","page_number":26,"box":{"x":116,"y":596,"width":765,"height":13}},{"id":"a263deee-1a03-4b5c-920d-c2e97b2a5d4e","block_type":"box","text":"not be changed without the approval of the holders of a majority of the outstanding voting shares of each","page_number":26,"box":{"x":116,"y":611,"width":732,"height":13}},{"id":"cf9ebaf6-cf52-4343-9d88-15579f92804f","block_type":"box","text":"Portfolio affected (which for this purpose and under the Investment Company Act of 1940, as amended (the","page_number":26,"box":{"x":116,"y":627,"width":750,"height":13}},{"id":"fea7a3cb-fa15-4a03-9eec-b59c4c82cbd5","block_type":"box","text":"“Investment Company Act”), means the lesser of (i) 67% of the shares represented at a meeting at which","page_number":26,"box":{"x":117,"y":642,"width":726,"height":13}},{"id":"3df15aaf-68b7-4b4e-afff-92f411fe97da","block_type":"box","text":"more than 50% of the outstanding shares of the affected Portfolio are represented or (ii) more than 50% of","page_number":26,"box":{"x":116,"y":658,"width":746,"height":13}},{"id":"2a23f07b-882e-41d2-a7d2-c18a8d4dda69","block_type":"box","text":"the outstanding shares of the affected Portfolio). The non-fundamental policies set forth below may be","page_number":26,"box":{"x":116,"y":673,"width":710,"height":13}},{"id":"7ae4275f-0069-468f-8496-711ef2e9cde7","block_type":"box","text":"changed by vote of a majority of the Fund’s Board of Directors at any time.","page_number":26,"box":{"x":116,"y":689,"width":522,"height":13}},{"id":"8ee43b69-9f40-4427-bab4-226b1a97d7c8","block_type":"box","text":"Restrictions Applicable to Each Portfolio (Except the Government Money Market Portfolio)","page_number":26,"box":{"x":136,"y":717,"width":669,"height":13}},{"id":"c0fde00b-97e6-426d-95ce-07942db66cc7","block_type":"box","text":"Each Portfolio (except the Government Money Market Portfolio) has adopted investment restrictions","page_number":26,"box":{"x":116,"y":741,"width":703,"height":13}},{"id":"68c6720e-a228-4526-a1be-17ea242700bf","block_type":"box","text":"numbered (1) through (9) as fundamental policies. Unde","page_number":26,"box":{"x":116,"y":757,"width":390,"height":13}},{"id":"2bf23c12-01ee-4860-b98e-f4c2418850b7","block_type":"box","text":"r its fundamental investment restrictions, each","page_number":26,"box":{"x":507,"y":757,"width":319,"height":12}},{"id":"d0c5bb19-95f6-4186-878a-19cee5e76ebc","block_type":"box","text":"Portfolio (except the Government Money Market Portfolio) may not:","page_number":26,"box":{"x":116,"y":772,"width":481,"height":13}},{"id":"efb2156e-a2bc-4586-a8a1-1cb2aae4ef6c","block_type":"box","text":"(1) Make any investment inconsistent with the Portfolio’s classification as a diversified company under the","page_number":26,"box":{"x":117,"y":794,"width":736,"height":13}},{"id":"fb623009-94f1-4eb6-a589-a2e684131fd4","block_type":"box","text":"Investment Company Act.","page_number":26,"box":{"x":116,"y":810,"width":181,"height":13}},{"id":"1fb0efac-c6c0-4cf3-95c9-7739c556c578","block_type":"box","text":"(2) Invest more than 25% of its assets, taken at market value, in the securities of issuers in any particular","page_number":26,"box":{"x":117,"y":832,"width":725,"height":12}},{"id":"bbe3a5b2-f4b5-4cf9-8fcc-542417e22a22","block_type":"box","text":"industry (excluding the U.S. Government and its agencies and instrumentalities).","page_number":26,"box":{"x":116,"y":847,"width":555,"height":13}},{"id":"29e0a8aa-8e8c-4760-9827-ade2433e00e4","block_type":"box","text":"(3) Make investments for the purpose of exercising control or management.","page_number":26,"box":{"x":117,"y":869,"width":523,"height":13}},{"id":"b4216b3e-48f8-4ebb-b5ac-4d13fd00f6fe","block_type":"box","text":"I-9","page_number":26,"box":{"x":490,"y":917,"width":19,"height":9}},{"id":"e0e6abb3-a41b-4b3e-bc5e-2022593a5a0f","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":26,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2e13c858-af6a-4e5c-9a75-3be76ed478be","block_type":"box","text":"(4) Purchase or sell real estate, except that a Portfolio may invest in securities directly or indirectly secured by","page_number":27,"box":{"x":117,"y":79,"width":756,"height":13}},{"id":"cb941b05-d66a-40c7-a743-fe99722e52d9","block_type":"box","text":"real estate or interests therein or issued by companies which invest in real estate or interests therein.","page_number":27,"box":{"x":116,"y":94,"width":688,"height":13}},{"id":"4716f91a-f8c7-49b1-b18e-b349666e7fd3","block_type":"box","text":"(5) Purchase or sell commodities or contracts on comm","page_number":27,"box":{"x":117,"y":118,"width":381,"height":12}},{"id":"e915f835-c7b4-49eb-9d3c-ecf6ba114ded","block_type":"box","text":"odities, except to the extent that a Portfolio may do so","page_number":27,"box":{"x":499,"y":118,"width":377,"height":12}},{"id":"850b67e9-da4a-4b09-8dcc-8cd57d17880b","block_type":"box","text":"in accordance with applicable law and the Prospectus and Statement of Additional Information, as they may","page_number":27,"box":{"x":116,"y":133,"width":752,"height":13}},{"id":"06b9c718-0270-4776-975c-515a852cc862","block_type":"box","text":"be amended from time to time, and without registering as a commodity pool operator under the Commodity","page_number":27,"box":{"x":116,"y":149,"width":755,"height":12}},{"id":"a22cf325-10dc-4e61-b127-6ea31681e055","block_type":"box","text":"Exchange Act.","page_number":27,"box":{"x":116,"y":164,"width":99,"height":13}},{"id":"75519291-2da6-4696-8e4f-edd0a38e1563","block_type":"box","text":"(6) Make loans to other persons, except (i) that the acquisition of bonds, debentures, or other corporate debt","page_number":27,"box":{"x":117,"y":187,"width":753,"height":13}},{"id":"9b05c8f3-bacb-4ad0-9603-50ec030dc1f3","block_type":"box","text":"securities and investment in government obligations, commercial paper, pass-through instruments, certificates","page_number":27,"box":{"x":116,"y":203,"width":759,"height":13}},{"id":"56249267-680c-4ae0-8ec3-0c1ef49d787a","block_type":"box","text":"of deposit, bankers acceptances, repurchase agreements","page_number":27,"box":{"x":116,"y":218,"width":384,"height":13}},{"id":"2d4d039b-296f-4e2e-9b58-26d7e26b7b54","block_type":"box","text":"or any similar instruments shall not be deemed to be","page_number":27,"box":{"x":505,"y":218,"width":363,"height":13}},{"id":"159561b1-086a-4d18-9850-c827a342a81c","block_type":"box","text":"the making of a loan, (ii) that a Portfolio may lend","page_number":27,"box":{"x":116,"y":234,"width":350,"height":13}},{"id":"6cabee88-7ed4-44d9-a02b-272f3293a36c","block_type":"box","text":"its portfolio securities, provided that the lending of","page_number":27,"box":{"x":471,"y":234,"width":353,"height":13}},{"id":"d0f3124c-56c9-4e2c-8583-ba44604cf668","block_type":"box","text":"portfolio securities may be made only in accordance with applicable law and the guidelines set forth in the","page_number":27,"box":{"x":116,"y":249,"width":736,"height":13}},{"id":"6bca5448-1241-43f8-9024-021bf494ed25","block_type":"box","text":"Portfolio’s Prospectus and this Statement of Additional Information, as they may be amended from time to","page_number":27,"box":{"x":116,"y":265,"width":741,"height":13}},{"id":"320793aa-a6f0-422a-a23b-858e3988ed18","block_type":"box","text":"time and (iii) as may otherwise be permitted by an exemptive order issued to the Fund by the SEC.","page_number":27,"box":{"x":116,"y":280,"width":682,"height":13}},{"id":"392edb3b-ea42-4005-abfd-5f234f097361","block_type":"box","text":"(7) Borrow money, except that (i) a Portfolio may borrow in amounts up to 33","page_number":27,"box":{"x":117,"y":304,"width":546,"height":12}},{"id":"8ea47e8c-7399-4c1a-b1bc-7f77d2e3bee8","block_type":"box","text":"1","page_number":27,"box":{"x":665,"y":304,"width":4,"height":6}},{"id":"d08369b5-4986-4269-a88c-cf3f97310cfe","block_type":"box","text":"/","page_number":27,"box":{"x":670,"y":304,"width":5,"height":10}},{"id":"dc0278eb-c9b9-419c-a01d-71bd93ad7f7e","block_type":"box","text":"3","page_number":27,"box":{"x":675,"y":310,"width":5,"height":6}},{"id":"48f8243c-9f68-4d8a-853f-5646d73ee585","block_type":"box","text":"% of its total assets","page_number":27,"box":{"x":682,"y":304,"width":133,"height":10}},{"id":"e714220a-c893-45d4-b5c1-e1b254a700b3","block_type":"box","text":"(including the amount borrowed), (ii) a Portfolio may borrow up to an additional 5% of its assets for","page_number":27,"box":{"x":117,"y":319,"width":703,"height":13}},{"id":"f27ec946-eca7-448c-9ff1-9e5e5bbd65af","block_type":"box","text":"temporary purposes, (iii) a Portfolio may 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A Portfolio may not","page_number":27,"box":{"x":116,"y":366,"width":389,"height":12}},{"id":"4e708b4c-1e99-474d-a2a2-88bac27c92fd","block_type":"box","text":"pledge its assets other than to secure such borrowings","page_number":27,"box":{"x":509,"y":366,"width":371,"height":12}},{"id":"7a4583c6-5859-4371-a3bb-ba0182c20dd4","block_type":"box","text":"or, to the extent permitted by a Portfolio’s investment policies as set forth in the Prospectus and the Statement","page_number":27,"box":{"x":116,"y":381,"width":762,"height":13}},{"id":"4b81f611-7594-4589-940c-b4ad400a0260","block_type":"box","text":"of Additional Information, as they may be amended from time to time, in connection with hedging","page_number":27,"box":{"x":116,"y":397,"width":685,"height":12}},{"id":"6721a50c-f69d-45fd-b91b-d31cd087f407","block_type":"box","text":"transactions, short sales, when-issued and forward comm","page_number":27,"box":{"x":116,"y":412,"width":398,"height":12}},{"id":"d0260ab6-2b85-4d18-9050-236871088824","block_type":"box","text":"itment transactions and similar investment strategies.","page_number":27,"box":{"x":515,"y":412,"width":366,"height":13}},{"id":"7a5c7f33-69f3-49be-901f-a298c69000a6","block_type":"box","text":"(8) Issue senior securities to the extent such","page_number":27,"box":{"x":117,"y":435,"width":298,"height":13}},{"id":"7f510d8e-c6bd-427b-a433-2fac1da7b523","block_type":"box","text":"issuance would violate applicable law.","page_number":27,"box":{"x":420,"y":435,"width":264,"height":13}},{"id":"ac0703c9-4555-4a22-9fe4-c5a50155d125","block_type":"box","text":"(9) Underwrite securities of other issuers except insofar as the Fund may be deemed an underwriter under the","page_number":27,"box":{"x":117,"y":459,"width":756,"height":12}},{"id":"538d7ea7-e92f-41b9-b09b-e8db71e347ca","block_type":"box","text":"Securities Act of 1933, as amended, in selling portfolio securities.","page_number":27,"box":{"x":116,"y":474,"width":450,"height":13}},{"id":"dd137c66-2444-4de9-9f78-e6399ef5097f","block_type":"box","text":"Each Portfolio (except the Government Money Market Portfolio), and as otherwise noted below, has adopted","page_number":27,"box":{"x":116,"y":497,"width":763,"height":13}},{"id":"f6cbeb74-b351-45eb-9c47-5c1a43cf174d","block_type":"box","text":"investment restrictions numbered (a) and (b) as non","page_number":27,"box":{"x":116,"y":513,"width":358,"height":12}},{"id":"442f6ee4-bb98-4744-a03e-a917c568ef31","block_type":"box","text":"-fundamental policies. 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As a matter of policy, however, the Portfolio will not purchase shares of any registered","page_number":29,"box":{"x":117,"y":133,"width":706,"height":13}},{"id":"83045415-6ead-49c1-8e42-3dac3511040d","block_type":"box","text":"open-end investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G)","page_number":29,"box":{"x":116,"y":149,"width":736,"height":12}},{"id":"4b99a60d-26f5-481c-b902-e695b930b5f6","block_type":"box","text":"(the “fund of funds” provisions) of the Investment Company Act, at any time the Portfolio has knowledge","page_number":29,"box":{"x":117,"y":164,"width":735,"height":13}},{"id":"cfb2559c-a876-4fb6-a1a5-2c146688ddf6","block_type":"box","text":"that its shares are purchased by another investment company investor in reliance on the provisions of","page_number":29,"box":{"x":116,"y":180,"width":703,"height":12}},{"id":"e9a16170-f09f-4c5b-b220-c2393233d0b1","block_type":"box","text":"subparagraph (G) of Section 12(d)(1).","page_number":29,"box":{"x":116,"y":195,"width":262,"height":13}},{"id":"4c8813b1-0fa3-4a31-ac12-17b5aa21578e","block_type":"box","text":"Except with respect to restriction (6), if a percentage restriction on the investment or use of assets set forth","page_number":29,"box":{"x":116,"y":218,"width":736,"height":13}},{"id":"5d3ec13f-90b6-467f-b30c-350e0be5baef","block_type":"box","text":"above is adhered to at the time a transaction is effected","page_number":29,"box":{"x":116,"y":234,"width":381,"height":10}},{"id":"e6f8d98d-e3e9-4068-bdaa-2331040b156a","block_type":"box","text":", later changes in percentages resulting from changing","page_number":29,"box":{"x":498,"y":234,"width":370,"height":13}},{"id":"0a7b1934-6c6d-455e-ab9e-485f877c2fd3","block_type":"box","text":"values will not be considered a violation.","page_number":29,"box":{"x":116,"y":249,"width":282,"height":10}},{"id":"41df9558-4a1f-405e-8d33-2c07ad9e720b","block_type":"box","text":"III. Information on Directors and Officers","page_number":29,"box":{"x":116,"y":278,"width":344,"height":10}},{"id":"17f30974-ce23-4c92-923a-1ca3530f7757","block_type":"box","text":"The Board consists of thirteen individuals (each, a “","page_number":29,"box":{"x":116,"y":304,"width":358,"height":12}},{"id":"9898c66d-7338-48b1-85e8-519d08cb01a3","block_type":"box","text":"Director”), eleven of whom are not “interested persons”","page_number":29,"box":{"x":476,"y":304,"width":390,"height":12}},{"id":"687c9284-5443-4232-a7d9-ce225ef63676","block_type":"box","text":"of the Fund as defined in the Investment Company Act (the “Independent Directors”). The registered","page_number":29,"box":{"x":116,"y":319,"width":701,"height":13}},{"id":"692a9a9f-0d3a-4ad8-9829-69a37de285f3","block_type":"box","text":"investment companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized","page_number":29,"box":{"x":116,"y":335,"width":763,"height":12}},{"id":"9e542ee5-06c6-411b-aeed-7ab8e152607e","block_type":"box","text":"into the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex","page_number":29,"box":{"x":116,"y":350,"width":748,"height":13}},{"id":"606b2834-cc60-4168-ba2f-9deb633047df","block_type":"box","text":"(each, a “BlackRock Fund Complex”). The Fund is included in the BlackRock Fund Complex referred to as","page_number":29,"box":{"x":117,"y":366,"width":747,"height":12}},{"id":"bbd918b9-e16d-4754-a3e6-70ba82d3383e","block_type":"box","text":"the BlackRock Multi-Asset Complex. The Directors also oversee as board members the operations of the","page_number":29,"box":{"x":116,"y":381,"width":727,"height":13}},{"id":"caa406e3-a74c-469f-887b-d3a334a3c6ce","block_type":"box","text":"other open-end registered investment companies included in the BlackRock Multi-Asset Complex.","page_number":29,"box":{"x":116,"y":397,"width":679,"height":12}},{"id":"04da3a9a-ab18-4d73-8bf4-c5eb766d55cd","block_type":"box","text":"The Board has overall responsibility for the oversight of the Fund and each Portfolio. The Chair of the Board","page_number":29,"box":{"x":116,"y":420,"width":756,"height":13}},{"id":"31810315-f8f8-4267-abc1-4645577a505d","block_type":"box","text":"is an Independent Director, and the Chair of each Board committee (each, a “Committee”) is an Independent","page_number":29,"box":{"x":116,"y":435,"width":757,"height":13}},{"id":"cc0e80be-b98b-4d9f-a394-5839f3ea629d","block_type":"box","text":"Director. The Board has five standing Committees: an Audit Committee, a Governance and Nominating","page_number":29,"box":{"x":116,"y":451,"width":724,"height":13}},{"id":"1bef9fcc-2a02-47ca-9379-ff7113498731","block_type":"box","text":"Committee, a Compliance Committee, a Performance Oversight Committee and an Ad Hoc Topics","page_number":29,"box":{"x":117,"y":466,"width":688,"height":13}},{"id":"20c19a7e-5c06-4860-8262-3cdf45faf1f0","block_type":"box","text":"Committee. The role of the Chair of the Board is to preside at all meetings of the Board and to act as a liaison","page_number":29,"box":{"x":117,"y":482,"width":760,"height":13}},{"id":"db18e800-2597-4eec-903c-fb00ee19e5b8","block_type":"box","text":"with service providers, officers, attorneys and other Directors generally between meetings. The Chair of each","page_number":29,"box":{"x":116,"y":497,"width":753,"height":13}},{"id":"afd3a51c-cf25-47dc-b0df-53340c144a18","block_type":"box","text":"Committee performs a similar role with respect to the Committee. The Chair of the Board or the Chair of a","page_number":29,"box":{"x":117,"y":513,"width":744,"height":13}},{"id":"c8267a8f-89ad-440b-82a6-958755e59f51","block_type":"box","text":"Committee may also perform such other functions as may be delegated by the Board or the Committee from","page_number":29,"box":{"x":117,"y":528,"width":752,"height":13}},{"id":"9cfdb20a-d9f4-49f1-992c-79a32f20cf29","block_type":"box","text":"time to time. The Independent Directors meet regularly outside the presence of Fund management, in","page_number":29,"box":{"x":116,"y":544,"width":701,"height":13}},{"id":"eff2e40b-b374-4e95-a56a-68c2d37a8572","block_type":"box","text":"executive session or with other service providers to each","page_number":29,"box":{"x":116,"y":559,"width":388,"height":13}},{"id":"523c84b2-73d6-4856-b5ea-335658ae087b","block_type":"box","text":"Portfolio. The Board has regular meetings five times a","page_number":29,"box":{"x":509,"y":559,"width":373,"height":13}},{"id":"9acb5737-4e24-44f1-bea5-363d5285ac40","block_type":"box","text":"year, and may hold special meetings if required before its next regular meeting. Each Committee meets","page_number":29,"box":{"x":116,"y":575,"width":711,"height":13}},{"id":"e2577434-89c6-4ba3-9f69-73dd74945a11","block_type":"box","text":"regularly to conduct the oversight functions delegated to that Committee by the Board and reports its findings","page_number":29,"box":{"x":116,"y":590,"width":762,"height":13}},{"id":"99fb59a3-af38-4082-b997-f2acbc33e6f5","block_type":"box","text":"to the Board. The Board and each standing Committee conduct annual assessments of their oversight function","page_number":29,"box":{"x":116,"y":606,"width":764,"height":13}},{"id":"8ccc7c03-e3cd-40ec-b3a8-da921ca9ad96","block_type":"box","text":"and structure. The Board has determined that the Board’s","page_number":29,"box":{"x":116,"y":621,"width":399,"height":10}},{"id":"88812b3e-c053-4638-981b-67e70320a20b","block_type":"box","text":"leadership structure is appropriate because it allows","page_number":29,"box":{"x":520,"y":621,"width":358,"height":13}},{"id":"a21298e6-7c6d-4b7b-a434-4be538098628","block_type":"box","text":"the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":29,"box":{"x":116,"y":637,"width":748,"height":13}},{"id":"68510581-f13e-4e8b-b1c0-332738247685","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":29,"box":{"x":117,"y":652,"width":425,"height":13}},{"id":"5ea67fa2-cbc5-4620-9ab0-eb2c17c67b37","block_type":"box","text":"The Board has engaged the Manager to manage each Portfolio on a day-to-day basis. The Board is responsible","page_number":29,"box":{"x":116,"y":676,"width":766,"height":12}},{"id":"21662063-5f14-43d7-8784-16557de75745","block_type":"box","text":"for overseeing the Manager, other service providers, the operations of each Portfolio and associated risks in","page_number":29,"box":{"x":116,"y":691,"width":744,"height":13}},{"id":"010344ff-0ec6-485c-a4c1-6b52d437e300","block_type":"box","text":"accordance with the provisions of the Investment Company Act, state law, other applicable laws, the Fund’s","page_number":29,"box":{"x":116,"y":707,"width":750,"height":12}},{"id":"15be0379-3595-4e98-8768-59c5b559a6da","block_type":"box","text":"charter, and each Portfolio’s investment objective and strategies. The Board reviews, on an ongoing basis,","page_number":29,"box":{"x":116,"y":722,"width":731,"height":13}},{"id":"b22ea165-3f9d-4482-9071-3cc8a5fd6c7a","block_type":"box","text":"each Portfolio’s performance, operations and investment strategies and techniques. The Board also conducts","page_number":29,"box":{"x":116,"y":738,"width":749,"height":12}},{"id":"be286716-3661-4556-9b0c-8196c47c972c","block_type":"box","text":"reviews of the Manager and its role in running the operations of each Portfolio.","page_number":29,"box":{"x":116,"y":753,"width":550,"height":13}},{"id":"346f3a4f-a029-4f69-9904-df616c3ba2ec","block_type":"box","text":"Day-to-day risk management with respect to each Portfolio is the responsibility of the Manager or of","page_number":29,"box":{"x":116,"y":776,"width":701,"height":13}},{"id":"6a0597e4-87e4-4198-9d63-ab2ecd7c88d0","block_type":"box","text":"sub-advisers or other service providers (depending on the nature of the risk), subject to the supervision of the","page_number":29,"box":{"x":116,"y":792,"width":754,"height":13}},{"id":"72c076bd-c394-4428-812f-24db14d45dcd","block_type":"box","text":"Manager. Each Portfolio is subject to a number of risks, including investment, compliance, operational and","page_number":29,"box":{"x":116,"y":807,"width":743,"height":13}},{"id":"d2da9a8f-0dd0-4d93-af4d-b231d8bcefbe","block_type":"box","text":"valuation risks, among others. While there are a number of risk management functions performed by the","page_number":29,"box":{"x":116,"y":823,"width":727,"height":13}},{"id":"422728ce-9839-44e4-b92c-d4d85baeac14","block_type":"box","text":"Manager and the sub-advisers or other service providers, as applicable, it is not possible to eliminate all of the","page_number":29,"box":{"x":116,"y":838,"width":761,"height":13}},{"id":"c4ffa871-e2aa-4dab-8205-cdad57bd64de","block_type":"box","text":"risks applicable to the Portfolios. Risk oversight forms","page_number":29,"box":{"x":116,"y":854,"width":376,"height":13}},{"id":"d1fef8aa-59e9-41eb-9223-c34e9fb9a13c","block_type":"box","text":"part of the Board’s general oversight of each Portfolio","page_number":29,"box":{"x":497,"y":854,"width":373,"height":13}},{"id":"dba7df4b-4015-47ef-9433-bcc565c13fdf","block_type":"box","text":"and is addressed as part of various Board and Committee activities. The Board, directly or through a","page_number":29,"box":{"x":116,"y":869,"width":697,"height":13}},{"id":"2a19cb6c-cb11-4eb5-a2ea-1d277fa6ffdd","block_type":"box","text":"I-12","page_number":29,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"55e196d8-36e5-4908-b72d-6fb002c4597d","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":29,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b7d9b1d7-7157-4276-ae71-246acbdb4eb0","block_type":"box","text":"Committee, also reviews reports from, among others, management, the independent registered public","page_number":30,"box":{"x":117,"y":79,"width":701,"height":13}},{"id":"599c36c5-fe01-4455-8d7c-6ee83bcce62d","block_type":"box","text":"accounting firm for each Portfolio, sub-advisers and internal auditors for the investment adviser or its","page_number":30,"box":{"x":116,"y":94,"width":704,"height":13}},{"id":"cd11e63c-7d04-4dde-ba98-d52c59e983a4","block_type":"box","text":"affiliates, as appropriate, regarding risks faced by each Portfolio and management’s or the service provider’s","page_number":30,"box":{"x":116,"y":110,"width":747,"height":13}},{"id":"588d24c7-9e4d-4cc2-b870-83a6120e920e","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the","page_number":30,"box":{"x":116,"y":125,"width":716,"height":13}},{"id":"6a97f29e-0aff-4946-b8c1-96a54249a389","block_type":"box","text":"Directors, and facilitates effective oversight of complia","page_number":30,"box":{"x":116,"y":141,"width":377,"height":13}},{"id":"c5de78b5-846b-40d3-827f-29abfccbcb23","block_type":"box","text":"nce with legal and regulatory requirements and of each","page_number":30,"box":{"x":493,"y":141,"width":382,"height":13}},{"id":"71106cc2-ef6b-493e-a96b-46c9df4b5af5","block_type":"box","text":"Portfolio’s activities and associated risks. The Board has appointed a Chief Compliance Officer, who oversees","page_number":30,"box":{"x":116,"y":156,"width":760,"height":13}},{"id":"37d83463-d902-496c-bc3a-e6477c5d1b41","block_type":"box","text":"the implementation and testing of the Fund’s compliance program and reports to the Board regarding","page_number":30,"box":{"x":116,"y":172,"width":704,"height":13}},{"id":"b773f067-4316-4957-808c-dabd11970194","block_type":"box","text":"compliance matters for the Portfolios and their service providers. The Independent Directors have engaged","page_number":30,"box":{"x":116,"y":187,"width":738,"height":13}},{"id":"f6978ac0-fb41-434c-8e7a-17f93a70f72d","block_type":"box","text":"independent legal counsel to assist them in performing their oversight responsibilities.","page_number":30,"box":{"x":116,"y":203,"width":591,"height":13}},{"id":"80d9e1c1-8d73-4cc9-b5bf-286db34346c4","block_type":"box","text":"Audit Committee.","page_number":30,"box":{"x":116,"y":226,"width":124,"height":10}},{"id":"353d55d3-5613-4731-9fc6-d2c2dfc8bfca","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer","page_number":30,"box":{"x":246,"y":226,"width":588,"height":13}},{"id":"02528c7c-b2d8-4a91-8dbe-92c92dcbe348","block_type":"box","text":"(Chair), Neil A. Cotty, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent","page_number":30,"box":{"x":117,"y":242,"width":747,"height":12}},{"id":"c2cd08de-527f-49b2-883f-d6cc5a386f5e","block_type":"box","text":"Directors. The principal responsibilities of the Audit Committee are to approve, and recommend to the full","page_number":30,"box":{"x":116,"y":257,"width":741,"height":13}},{"id":"099e5810-dbe0-4469-98be-7aab7eb3c30e","block_type":"box","text":"Board for approval, the selection, retention, termination and compensation of each Portfolio’s independent","page_number":30,"box":{"x":116,"y":273,"width":741,"height":12}},{"id":"466e9b63-dc61-4a33-90a5-d60db3900afc","block_type":"box","text":"registered public accounting firm (the “Independent Registered Public Accounting Firm”) and to oversee the","page_number":30,"box":{"x":116,"y":288,"width":749,"height":13}},{"id":"840b0ce1-0707-4864-9077-5a889d04e313","block_type":"box","text":"Independent Registered Public Accounting Firm’s w","page_number":30,"box":{"x":116,"y":304,"width":360,"height":12}},{"id":"af127312-8d2e-4f13-b3eb-a6b3ff658d8e","block_type":"box","text":"ork. The Audit Committee’s responsibilities include,","page_number":30,"box":{"x":476,"y":304,"width":361,"height":12}},{"id":"926ab90b-0077-4001-b76d-ca07dc45e211","block_type":"box","text":"without limitation, to (1) evaluate the qualifications and independence of the Independent Registered Public","page_number":30,"box":{"x":116,"y":319,"width":747,"height":13}},{"id":"d3c57b16-c34f-460f-9063-14ccd809ec00","block_type":"box","text":"Accounting Firm; (2) approve all audit engagement terms and fees for each Portfolio; (3) review the conduct","page_number":30,"box":{"x":116,"y":335,"width":750,"height":12}},{"id":"d195c45c-de82-47ed-8e44-c712d42bc994","block_type":"box","text":"and results of each independent audit of each Portfolio’s annual financial statements; (4) review any issues","page_number":30,"box":{"x":116,"y":350,"width":735,"height":13}},{"id":"e5330883-5481-40f2-9e9d-145c3d630be6","block_type":"box","text":"raised by the Independent Registered Public Accounting Firm or Fund management regarding the accounting","page_number":30,"box":{"x":116,"y":366,"width":755,"height":12}},{"id":"ee24f751-bd61-4b35-8b4e-b92d404e564d","block_type":"box","text":"or financial reporting policies and practices of each Portfolio and the internal controls of each Portfolio and","page_number":30,"box":{"x":116,"y":381,"width":746,"height":13}},{"id":"5f69c7ad-1bad-40bc-a7a7-b7ba27d41134","block_type":"box","text":"certain service providers; (5) oversee the performance of each Portfolio’s Independent Registered Public","page_number":30,"box":{"x":116,"y":397,"width":715,"height":12}},{"id":"94325484-936a-46ae-a0b8-1e3e0ef5a560","block_type":"box","text":"Accounting Firm; (6) review and discuss with management and each Portfolio’s Independent Registered Public","page_number":30,"box":{"x":116,"y":412,"width":765,"height":13}},{"id":"795c9f10-ca81-40b1-9aaf-500d91de2446","block_type":"box","text":"Accounting Firm the performance and findings of eac","page_number":30,"box":{"x":116,"y":428,"width":371,"height":12}},{"id":"58178788-a2c0-4430-81a1-8056a5481dff","block_type":"box","text":"h Portfolio’s internal auditors; (7) discuss with Fund","page_number":30,"box":{"x":487,"y":428,"width":362,"height":12}},{"id":"c9181300-f8ee-44c0-975f-f7b025435981","block_type":"box","text":"management its policies regarding risk assessment and risk management as such matters relate to each","page_number":30,"box":{"x":116,"y":443,"width":708,"height":13}},{"id":"c8a884c8-ac0e-436a-9ca6-b645ec3ad9d7","block_type":"box","text":"Portfolio’s financial reporting and controls; (8) resolve any disagreements between Fund management and the","page_number":30,"box":{"x":116,"y":459,"width":760,"height":12}},{"id":"b604d3bc-f1f2-4fa3-9b3d-66d328095697","block_type":"box","text":"Independent Registered Public Accounting Firm regarding financial reporting; and (9) undertake such other","page_number":30,"box":{"x":116,"y":474,"width":745,"height":13}},{"id":"6f2fdf37-2cf2-4326-a5dc-d4430985d85f","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Audit Committee. The","page_number":30,"box":{"x":116,"y":490,"width":748,"height":12}},{"id":"108cc697-9457-4448-b162-d5fe7570b910","block_type":"box","text":"Board has adopted a written charter for the Audit Committee. During the fiscal year ended December 31,","page_number":30,"box":{"x":116,"y":505,"width":732,"height":13}},{"id":"42280199-cf8c-439b-bac6-24069acfc434","block_type":"box","text":"2025, the Audit Committee met four times.","page_number":30,"box":{"x":116,"y":521,"width":300,"height":12}},{"id":"89c338db-78f0-468d-be9d-b70f79f97c47","block_type":"box","text":"Governance and Nominating Committee.","page_number":30,"box":{"x":117,"y":544,"width":288,"height":13}},{"id":"404b6f52-c910-4992-b555-337e8292538c","block_type":"box","text":"The members of the Governance and Nominating Committee","page_number":30,"box":{"x":411,"y":544,"width":427,"height":13}},{"id":"42bf275d-92e6-4c91-8014-9c4f202d9553","block_type":"box","text":"(the “Governance Committee”) are Cynthia A. Montgom","page_number":30,"box":{"x":117,"y":559,"width":400,"height":13}},{"id":"69a06aa8-cbe7-416f-b9bb-9e9b8151b7d4","block_type":"box","text":"ery (Chair), Christopher J. Ailman, Susan J. Carter,","page_number":30,"box":{"x":517,"y":559,"width":356,"height":13}},{"id":"ec847400-44a4-465b-b77b-d11947f7852e","block_type":"box","text":"Collette Chilton and Henry R. Keizer, all of whom are Independent Directors. The principal responsibilities of","page_number":30,"box":{"x":117,"y":575,"width":764,"height":13}},{"id":"9e26e4c2-284d-485a-bd5d-53b83c3dc77f","block_type":"box","text":"the Governance Committee are to (1) identify individuals qualified to serve as Independent Directors of the","page_number":30,"box":{"x":116,"y":590,"width":742,"height":13}},{"id":"68b153d9-c7d0-4225-b6e1-18cc8918d499","block_type":"box","text":"Fund and recommend Independent Director nominees for election by shareholders or appointment by the","page_number":30,"box":{"x":116,"y":606,"width":732,"height":13}},{"id":"3ff37e7c-c4e9-4e0f-a5f4-0306775d3706","block_type":"box","text":"Board; (2) advise the Board with respect to Board compos","page_number":30,"box":{"x":116,"y":621,"width":402,"height":13}},{"id":"36d4bbf2-134d-4733-90f4-ee2cd128ab82","block_type":"box","text":"ition, procedures and committees (other than the","page_number":30,"box":{"x":519,"y":621,"width":338,"height":13}},{"id":"4fc3ddd5-8bef-4606-bc04-c3f74dceb714","block_type":"box","text":"Audit Committee); (3) oversee periodic self-assessments of","page_number":30,"box":{"x":116,"y":637,"width":405,"height":13}},{"id":"27ff2ac3-016b-45e9-97e0-ed3ce7261a10","block_type":"box","text":"the Board and committees of the Board (other than","page_number":30,"box":{"x":525,"y":637,"width":354,"height":12}},{"id":"a3f823fa-7a3c-46a2-8cdc-0e421db049a3","block_type":"box","text":"the Audit Committee); (4) review and make recommendati","page_number":30,"box":{"x":116,"y":652,"width":407,"height":13}},{"id":"b9dd14c7-794f-4f83-8f2b-4a6afcb933a8","block_type":"box","text":"ons regarding Independent Director compensation;","page_number":30,"box":{"x":524,"y":652,"width":352,"height":13}},{"id":"c0a450ce-e8c4-4945-ad4d-7aabeda25dfa","block_type":"box","text":"(5) monitor corporate governance matters and develop appropriate recommendations to the Board; (6) act","page_number":30,"box":{"x":117,"y":668,"width":738,"height":13}},{"id":"aa8a213d-b4c6-45fd-a976-ab7a5b991939","block_type":"box","text":"as the administrative committee with respect to Board","page_number":30,"box":{"x":116,"y":683,"width":374,"height":13}},{"id":"d8243a3a-0c89-4b7d-abed-7c7f54a021a6","block_type":"box","text":"policies and procedures, committee policies and","page_number":30,"box":{"x":495,"y":683,"width":330,"height":13}},{"id":"f16de7fe-5dcd-4199-8b38-a5e1acdf4430","block_type":"box","text":"procedures (other than the Audit Committee) and codes of ethics as they relate to Independent Directors; and","page_number":30,"box":{"x":116,"y":699,"width":759,"height":13}},{"id":"647b232a-183f-4bc9-8b46-4b2f007f015b","block_type":"box","text":"(7) undertake such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":30,"box":{"x":117,"y":714,"width":760,"height":13}},{"id":"902e09e8-da9c-4995-a6cc-6a7d40683d07","block_type":"box","text":"Governance Committee. The Governance Committee may","page_number":30,"box":{"x":117,"y":730,"width":404,"height":13}},{"id":"757aeb23-bd67-4a01-9ca1-ef100fef7eb6","block_type":"box","text":"consider nominations for Directors made by the","page_number":30,"box":{"x":526,"y":730,"width":332,"height":13}},{"id":"225d804c-bca7-4fe3-9110-1048e880427f","block_type":"box","text":"Fund’s shareholders as it deems appropriate. Under the Fund’s Amended and Restated Bylaws (“Bylaws”),","page_number":30,"box":{"x":116,"y":745,"width":739,"height":13}},{"id":"4069e685-552a-4ed9-a300-bf62a7ec2a73","block_type":"box","text":"shareholders must follow certain procedures to nominate a person for election as a Director at a shareholder","page_number":30,"box":{"x":116,"y":761,"width":752,"height":13}},{"id":"e2bbb0e3-5155-491a-8603-7923ff8212a1","block_type":"box","text":"meeting at which Directors are to be elected. Under these advance notice procedures, notice of the proposed","page_number":30,"box":{"x":116,"y":776,"width":748,"height":13}},{"id":"07c0a8be-13ee-4bb0-9379-88e37d5e5c35","block_type":"box","text":"nominee to the Secretary of the Fund must be delivered to or mailed and received at the principal executive","page_number":30,"box":{"x":116,"y":792,"width":741,"height":13}},{"id":"7b430676-7d48-4927-9d2d-58e9bfb718d0","block_type":"box","text":"offices of the Fund not later than the close of business on the fifth day following the day on which notice of","page_number":30,"box":{"x":116,"y":807,"width":745,"height":13}},{"id":"6c6fa5fc-e747-4392-b069-d2e5a5038301","block_type":"box","text":"the date of the meeting was mailed or public disclosure of the date of the meeting was made, whichever first","page_number":30,"box":{"x":116,"y":823,"width":749,"height":13}},{"id":"6af53569-213d-4a2b-a929-9ddf5b1ef263","block_type":"box","text":"occurs. The Fund’s Bylaws provide that notice of a proposed nomination must include certain information","page_number":30,"box":{"x":116,"y":838,"width":738,"height":13}},{"id":"4e436df8-9351-4d59-bf20-77a291e2c650","block_type":"box","text":"about the shareholder and the nominee, as well as certain other information, including a written consent of","page_number":30,"box":{"x":116,"y":854,"width":744,"height":13}},{"id":"51cab36b-86a2-4d3f-ae0e-6fa707084a4c","block_type":"box","text":"I-13","page_number":30,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"25cb601b-90d3-46b2-a9e9-370f3b7e71f7","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":30,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2bb91137-116c-4440-aa0b-e1f7599b4628","block_type":"box","text":"the proposed nominee to serve if elected. Reference is made to the Fund’s Bylaws for more details. The Board","page_number":31,"box":{"x":116,"y":79,"width":758,"height":13}},{"id":"cb6f727e-1f03-48ff-9c76-fa28f72f84d5","block_type":"box","text":"has adopted a written charter for the Governance Committee. During the fiscal year ended December 31,","page_number":31,"box":{"x":116,"y":94,"width":730,"height":13}},{"id":"7f645127-38f4-498a-b234-cdc26490b0e8","block_type":"box","text":"2025, the Governance Committee met eleven times.","page_number":31,"box":{"x":116,"y":110,"width":358,"height":12}},{"id":"5b3610b3-8e2e-48f0-be8a-7dcab2837511","block_type":"box","text":"Compliance Committee.","page_number":31,"box":{"x":117,"y":133,"width":167,"height":13}},{"id":"0e311b44-87af-44fb-86be-8cc5051332d0","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are","page_number":31,"box":{"x":290,"y":133,"width":558,"height":13}},{"id":"40108474-f336-4ede-bbdf-5c57b3b5ffe2","block_type":"box","text":"Claire A. Walton (Chair), Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish,","page_number":31,"box":{"x":117,"y":149,"width":761,"height":12}},{"id":"f29ad063-034f-4833-a744-50e81be0dbe2","block_type":"box","text":"all of whom are Independent Directors. The Compliance Committee’s purpose is to assist the Board in","page_number":31,"box":{"x":116,"y":164,"width":710,"height":13}},{"id":"1b83b87b-6517-47eb-912e-e411f5c7c3c4","block_type":"box","text":"fulfilling its responsibility to oversee regulatory and fiducia","page_number":31,"box":{"x":116,"y":180,"width":408,"height":12}},{"id":"e72fa47a-fbc2-4b23-8d6a-23e34bacc45a","block_type":"box","text":"ry compliance matters involving the Fund, the","page_number":31,"box":{"x":524,"y":180,"width":319,"height":12}},{"id":"6cce36e8-2763-43a8-bbd4-110b3086971f","block_type":"box","text":"fund-related activities of BlackRock and any sub-adviser and the Fund’s third-party service providers. The","page_number":31,"box":{"x":116,"y":195,"width":735,"height":13}},{"id":"374afc12-5706-4f31-8551-78fd93ec9507","block_type":"box","text":"Compliance Committee’s responsibilities include, without","page_number":31,"box":{"x":117,"y":211,"width":399,"height":12}},{"id":"723c11b3-5522-45f6-8896-d12a43477d92","block_type":"box","text":"limitation, to (1) oversee the compliance policies","page_number":31,"box":{"x":521,"y":211,"width":335,"height":12}},{"id":"a89f7a33-9d8a-4962-93a5-4a02d76e4a8d","block_type":"box","text":"and procedures of the Fund and its service providers and recommend changes or additions to such policies","page_number":31,"box":{"x":116,"y":226,"width":737,"height":13}},{"id":"7ac7815b-1f79-4352-96ee-1a260eaeabe3","block_type":"box","text":"and procedures; (2) review information on and, where appropriate, recommend policies concerning the Fund’s","page_number":31,"box":{"x":116,"y":242,"width":766,"height":12}},{"id":"a62ad285-f7bc-4200-890d-8b01d0dd0528","block_type":"box","text":"compliance with applicable law; (3) review reports fr","page_number":31,"box":{"x":116,"y":257,"width":367,"height":13}},{"id":"9eefc110-9901-4116-927a-5eecfe115469","block_type":"box","text":"om, oversee the annual performance review of, and make","page_number":31,"box":{"x":484,"y":257,"width":397,"height":13}},{"id":"b906dc10-80f6-4474-93c6-304ea62b9313","block_type":"box","text":"certain recommendations and determinations regardi","page_number":31,"box":{"x":116,"y":273,"width":367,"height":12}},{"id":"748e7ce7-a2c1-49e9-a987-585ee840422e","block_type":"box","text":"ng the Fund’s Chief Compliance Officer (the “CCO”),","page_number":31,"box":{"x":484,"y":273,"width":377,"height":12}},{"id":"4ad57ed6-e268-40f1-a9bf-a8ce749c909e","block_type":"box","text":"including determining the amount and structure of the CCO’s compensation and recommending such amount","page_number":31,"box":{"x":116,"y":288,"width":763,"height":13}},{"id":"c7be0635-4bbd-43cc-9a32-778d793f81f2","block_type":"box","text":"and structure to the full Board for approval and ratification; and (4) undertake such other duties and","page_number":31,"box":{"x":116,"y":304,"width":699,"height":12}},{"id":"9cfd5d91-d073-4236-99f7-688b65364256","block_type":"box","text":"responsibilities as may from time to time be delegated by the Board to the Compliance Committee. The Board","page_number":31,"box":{"x":116,"y":319,"width":762,"height":13}},{"id":"c8a258d5-c43e-4e8c-80e8-690a06bd2428","block_type":"box","text":"has adopted a written charter for the Compliance Committee. During the fiscal year ended December 31,","page_number":31,"box":{"x":116,"y":335,"width":729,"height":12}},{"id":"5da050c1-7fbb-4fa7-8265-d08b622b58ea","block_type":"box","text":"2025, the Compliance Committee met four times.","page_number":31,"box":{"x":116,"y":350,"width":344,"height":13}},{"id":"c1580f46-fe20-4346-8691-bdea2210d2c4","block_type":"box","text":"Performance Oversight Committee.","page_number":31,"box":{"x":116,"y":373,"width":247,"height":13}},{"id":"e2692094-8083-45a4-9bc6-560ffa94a8a0","block_type":"box","text":"The members of the Performance Oversight Committee (the","page_number":31,"box":{"x":369,"y":373,"width":416,"height":13}},{"id":"21ad8a17-6f58-4066-a691-b9c029db3022","block_type":"box","text":"“Performance Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter,","page_number":31,"box":{"x":117,"y":389,"width":765,"height":13}},{"id":"5f61525f-f73c-4f25-a0a8-2fa451c0b6a8","block_type":"box","text":"Collette Chilton and Neil A. Cotty, all of whom are Independent Directors. The Performance Oversight","page_number":31,"box":{"x":117,"y":404,"width":718,"height":13}},{"id":"280795eb-8a30-4a39-ac8d-76c86d3d877c","block_type":"box","text":"Committee’s purpose is to assist the Board in fulfilling its responsibility to oversee each Portfolio’s investment","page_number":31,"box":{"x":117,"y":420,"width":758,"height":13}},{"id":"7536011a-095d-4750-b887-459a2427ccf9","block_type":"box","text":"performance relative to its agreed-upon performance objectives and to assist the Independent Directors in their","page_number":31,"box":{"x":116,"y":435,"width":767,"height":13}},{"id":"45c242da-5a09-424d-8c80-eaafc21b83a4","block_type":"box","text":"consideration of investment advisory agreements. The Performance Oversight Committee’s responsibilities","page_number":31,"box":{"x":116,"y":451,"width":737,"height":13}},{"id":"c0822f84-775e-412e-ac56-536de86bf0a8","block_type":"box","text":"include, without limitation, to (1) review information on, and make recommendations to the full Board in","page_number":31,"box":{"x":116,"y":466,"width":735,"height":13}},{"id":"5fe2fa6a-1418-4c43-80b2-0239932b89e2","block_type":"box","text":"respect of, each Portfolio’s investment objective, policies and practices; (2) review information on each","page_number":31,"box":{"x":116,"y":482,"width":709,"height":13}},{"id":"69631b96-10fd-4108-9e45-1ef6532a00c0","block_type":"box","text":"Portfolio’s investment performance; (3) review information on appropriate benchmarks and competitive","page_number":31,"box":{"x":116,"y":497,"width":722,"height":13}},{"id":"4e5789f6-b64c-4fed-b94b-5e764ff5fc40","block_type":"box","text":"universes and unusual or exceptional investment matters; (4) review personnel and other resources devoted to","page_number":31,"box":{"x":116,"y":513,"width":760,"height":13}},{"id":"7075dc00-52cb-46c4-a590-956d494b78ec","block_type":"box","text":"management of each Portfolio and evaluate the nature and quality of information furnished to the","page_number":31,"box":{"x":116,"y":528,"width":680,"height":13}},{"id":"f03032e3-98d4-4034-80df-5a1e0175900d","block_type":"box","text":"Performance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":31,"box":{"x":116,"y":544,"width":766,"height":13}},{"id":"ef7aea5d-50d1-418e-85fa-4e0ce1db15ad","block_type":"box","text":"non-fundamental investment policies and restrictions","page_number":31,"box":{"x":116,"y":559,"width":367,"height":13}},{"id":"b1573d6a-1236-4866-b532-287f8acea3a7","block_type":"box","text":", fund mergers or liquidations; (6) request and review","page_number":31,"box":{"x":484,"y":559,"width":369,"height":13}},{"id":"82b00f49-d519-4fc7-b93d-08128cb28015","block_type":"box","text":"information on the nature, extent and quality of","page_number":31,"box":{"x":116,"y":575,"width":335,"height":13}},{"id":"62a6a600-bae1-4c73-87ed-419e3238f65e","block_type":"box","text":"services provided to the shareholders; (7) make","page_number":31,"box":{"x":455,"y":575,"width":325,"height":13}},{"id":"74d7e151-90d8-4a06-b0f9-eb25bdd56eb5","block_type":"box","text":"recommendations to the Board concerning the approval or renewal of investment advisory agreements; and","page_number":31,"box":{"x":116,"y":590,"width":745,"height":13}},{"id":"93e139f8-c1ef-4b0c-9028-de846d5fff29","block_type":"box","text":"(8) undertake such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":31,"box":{"x":117,"y":606,"width":760,"height":13}},{"id":"a51c7f8f-dc99-4fc4-b319-1c296ad4e5c7","block_type":"box","text":"Performance Oversight Committee. The Board has adopted a written charter for the Performance Oversight","page_number":31,"box":{"x":116,"y":621,"width":749,"height":13}},{"id":"4380df31-f22e-4e61-9cdf-c92fdeb1bd58","block_type":"box","text":"Committee. During the fiscal year ended December 31, 2025, the Performance Oversight Committee met","page_number":31,"box":{"x":117,"y":637,"width":729,"height":13}},{"id":"4ab10dbb-b1b0-4f2c-b7ba-5f28cebefe43","block_type":"box","text":"five times.","page_number":31,"box":{"x":116,"y":652,"width":69,"height":10}},{"id":"1fcd7c1c-e4cf-49c3-bd35-a40134eed4f0","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":31,"box":{"x":116,"y":676,"width":191,"height":12}},{"id":"1519b238-0af7-4c1d-8bcc-f9ac3cf4dba1","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics","page_number":31,"box":{"x":313,"y":676,"width":481,"height":12}},{"id":"ac4cd9e7-15c7-4911-b850-7b2a457efcfd","block_type":"box","text":"Committee”) are Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Directors,","page_number":31,"box":{"x":117,"y":691,"width":742,"height":13}},{"id":"31f1d85c-e8a8-428a-8b43-aa94e7ae8905","block_type":"box","text":"and John M. Perlowski, who serves as an interested Director. The principal responsibilities of the Ad Hoc","page_number":31,"box":{"x":116,"y":707,"width":733,"height":12}},{"id":"a00b1b81-0d1d-4281-b22c-8ff1cc7a997a","block_type":"box","text":"Topics Committee are to (1) act on routine matters between meetings of the Board; (2) act on such matters as","page_number":31,"box":{"x":116,"y":722,"width":759,"height":13}},{"id":"94c2ba36-fa0c-43d6-b502-10eb95ff1063","block_type":"box","text":"may require urgent action between meetings of the Board; and (3) exercise such other authority as may from","page_number":31,"box":{"x":116,"y":738,"width":753,"height":12}},{"id":"b4128164-75ea-4ad5-92e2-b7729b39f083","block_type":"box","text":"time to time be delegated to the Ad Hoc Topics Committee by the Board. The Board has adopted a written","page_number":31,"box":{"x":116,"y":753,"width":743,"height":13}},{"id":"205087ae-6919-4e64-b022-322ccba9dba6","block_type":"box","text":"charter for the Ad Hoc Topics Committee. During the fiscal year ended December 31, 2025, the Ad Hoc","page_number":31,"box":{"x":116,"y":769,"width":727,"height":13}},{"id":"ec915ae3-15c4-4ccf-9443-adf17f7867c5","block_type":"box","text":"Topics Committee did not meet.","page_number":31,"box":{"x":116,"y":784,"width":224,"height":13}},{"id":"a106f66b-5c71-489a-8b53-8bb38401794e","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":31,"box":{"x":116,"y":807,"width":743,"height":13}},{"id":"24a798fe-9494-4454-b708-0d83a0093631","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Director candidates (the","page_number":31,"box":{"x":116,"y":823,"width":712,"height":13}},{"id":"dcb1c41c-95f4-4fa6-bf86-528f566dd78f","block_type":"box","text":"“Statement of Policy”). The Board believes that each Independent Director satisfied, at the time he or she was","page_number":31,"box":{"x":117,"y":838,"width":758,"height":13}},{"id":"449bb3e6-f67b-4113-9e87-430d6d2e0185","block_type":"box","text":"initially elected or appointed a Director, and continues to satisfy, the standards contemplated by the Statement","page_number":31,"box":{"x":116,"y":854,"width":766,"height":13}},{"id":"566a7daf-561b-4c8c-9edc-4c1f2ea6f0a8","block_type":"box","text":"of Policy. Furthermore, in determining that a particular Independent Director was and continues to be","page_number":31,"box":{"x":116,"y":869,"width":708,"height":13}},{"id":"865dcbbe-0902-4715-a8ac-04e30d7b460f","block_type":"box","text":"I-14","page_number":31,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"04bc89bb-5f23-4bc4-b684-eebf914a3587","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":31,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d6de1142-0c98-4419-978e-a41ccdd1935c","block_type":"box","text":"qualified to serve as a Director, the Board has considered a variety of criteria, none of which, in isolation, was","page_number":32,"box":{"x":116,"y":79,"width":761,"height":13}},{"id":"d3bfb2eb-683a-4f58-9a0f-727cdbcf9c16","block_type":"box","text":"controlling. The Board believes that, collectively, the Independent Directors have balanced and diverse","page_number":32,"box":{"x":116,"y":94,"width":709,"height":13}},{"id":"6a7274d7-69e3-47ba-b404-d53733a11957","block_type":"box","text":"experience, skills, attributes and qualifications, which allow the Board to operate effectively in governing the","page_number":32,"box":{"x":116,"y":110,"width":752,"height":13}},{"id":"ed823621-136a-48de-972e-c790d900ab7d","block_type":"box","text":"Fund and protecting the interests of shareholders. Among the attributes common to all Independent Directors","page_number":32,"box":{"x":116,"y":125,"width":760,"height":13}},{"id":"7f65acc7-d1a2-40eb-afed-7b032c09b3ce","block_type":"box","text":"are their ability to review critically, evaluate, question a","page_number":32,"box":{"x":116,"y":141,"width":384,"height":13}},{"id":"a1bf9bc1-c7cd-4405-be38-4fda84c1f8ee","block_type":"box","text":"nd discuss information provided to them, to interact","page_number":32,"box":{"x":501,"y":141,"width":362,"height":13}},{"id":"e7e88e97-3e9d-4638-b029-26ae52864f10","block_type":"box","text":"effectively with each Portfolio’s investment adviser, sub-advisers, other service providers, counsel and the","page_number":32,"box":{"x":116,"y":156,"width":727,"height":13}},{"id":"ed4c21ce-72bb-440d-afbe-0f6dcb09d6fb","block_type":"box","text":"Independent Registered Public Accounting Firm, and to exercise effective business judgment in the","page_number":32,"box":{"x":116,"y":172,"width":680,"height":13}},{"id":"3aa8b3ea-57f8-42ef-99fb-24e3e9fad1d5","block_type":"box","text":"performance of their duties as Directors.","page_number":32,"box":{"x":116,"y":187,"width":279,"height":13}},{"id":"f590a1c4-3a97-4d39-a7cb-bdd706ef05fc","block_type":"box","text":"Each Director’s ability to perform his or her duties effectively is evidenced by his or her educational","page_number":32,"box":{"x":116,"y":211,"width":688,"height":12}},{"id":"3b098e11-2be3-4f77-876c-c0a46bc04d9c","block_type":"box","text":"background or professional training; business, consulting, public service or academic positions; experience","page_number":32,"box":{"x":116,"y":226,"width":736,"height":13}},{"id":"4769bdfa-5011-4fa4-a082-583c62d3dd87","block_type":"box","text":"from service as a board member of the Fund and the other funds in the BlackRock Fund Complexes (and any","page_number":32,"box":{"x":116,"y":242,"width":759,"height":12}},{"id":"cf679d9f-8cc9-4693-bac7-ec743a52fa88","block_type":"box","text":"predecessor funds), other investment funds, public companies, non-profit entities or other organizations;","page_number":32,"box":{"x":116,"y":257,"width":723,"height":13}},{"id":"b239adf9-9aba-4d3c-aa9b-c7f59544100b","block_type":"box","text":"ongoing commitment to and participation in Board an","page_number":32,"box":{"x":116,"y":273,"width":377,"height":12}},{"id":"b303bb0c-4f81-4e34-a764-94174d61bbe4","block_type":"box","text":"d Committee meetings, as well as his or her leadership","page_number":32,"box":{"x":494,"y":273,"width":375,"height":12}},{"id":"faab099f-d37e-47c9-99d7-db9f0294ea1f","block_type":"box","text":"of standing and ad hoc committees throughout the years; or other relevant life experiences.","page_number":32,"box":{"x":116,"y":288,"width":629,"height":13}},{"id":"062795e3-630f-4f7c-967e-28f7fd928d96","block_type":"box","text":"Directors Elect","page_number":32,"box":{"x":116,"y":311,"width":105,"height":10}},{"id":"48fb1991-0553-4f1f-95d8-444b548c26ef","block_type":"box","text":". Jeffrey Jarczyk and Marc D. Stern have been appointed as Directors of the Fund effective","page_number":32,"box":{"x":222,"y":311,"width":625,"height":13}},{"id":"1dfabeb6-8cd8-4be2-b67e-4ffdc78eb5e5","block_type":"box","text":"July 1, 2026 (each, a “Director-Elect”). Each Director Elect is expected to qualify as an Independent Director","page_number":32,"box":{"x":115,"y":327,"width":758,"height":13}},{"id":"ea275531-77dd-4d56-a65d-9b2e97b082ca","block_type":"box","text":"at the time of his service. Each Director Elect has been retained as a consultant to the Independent Directors to","page_number":32,"box":{"x":116,"y":342,"width":766,"height":13}},{"id":"f3378b75-4f51-4fad-90f2-b5110859ed3b","block_type":"box","text":"assist the Independent Directors in the performance of their duties to the Fund and is expected to serve in that","page_number":32,"box":{"x":116,"y":358,"width":761,"height":13}},{"id":"a99699ab-d48e-4609-ad4e-97e68a54a64a","block_type":"box","text":"capacity until July 1, 2026.","page_number":32,"box":{"x":116,"y":373,"width":187,"height":13}},{"id":"26e66d02-b672-4131-a3ca-73173d610f09","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Directors that","page_number":32,"box":{"x":116,"y":397,"width":718,"height":12}},{"id":"02ba45ad-38d2-4d6d-ac1d-3edf8c1f4165","block_type":"box","text":"support the conclusion that each Director should serve on the Board.","page_number":32,"box":{"x":116,"y":412,"width":477,"height":13}},{"id":"b14573e7-08b8-40b9-98fd-dadf976079b1","block_type":"box","text":"Director","page_number":32,"box":{"x":116,"y":440,"width":48,"height":8}},{"id":"49d77609-4de1-4516-b566-f70302655a99","block_type":"box","text":"Experience, Qualifications and Skills","page_number":32,"box":{"x":266,"y":440,"width":212,"height":10}},{"id":"4c46f187-e58f-446c-8ab0-8094e24064e4","block_type":"box","text":"Independent Directors","page_number":32,"box":{"x":116,"y":462,"width":130,"height":10}},{"id":"74b6b03b-43ac-4a53-9fd1-1d7323262870","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services industry, including","page_number":32,"box":{"x":116,"y":477,"width":735,"height":11}},{"id":"ac704020-f28b-432b-b855-1a169f5e3290","block_type":"box","text":"most recently serving as Chief Investment Officer of the California State Teachers Retirement System","page_number":32,"box":{"x":266,"y":488,"width":584,"height":10}},{"id":"1986affb-c7e8-4d14-8ed4-86c1a6037a04","block_type":"box","text":"(CalSTRS) from 2000 to June 2024 where he led its investment program. Mr. Ailman currently is a","page_number":32,"box":{"x":267,"y":498,"width":574,"height":10}},{"id":"4c1bbd4d-da25-4221-9699-820631df8cd0","block_type":"box","text":"principal at Ailman Advisers. In addition, he has held various roles in the industry, including as member","page_number":32,"box":{"x":266,"y":508,"width":602,"height":11}},{"id":"c561ecd6-25ae-43df-8022-6d9f4b077a58","block_type":"box","text":"and chair of the asset owner committee of the Kroner Center for Financial Research, chairman of the","page_number":32,"box":{"x":266,"y":519,"width":584,"height":10}},{"id":"0acf3f49-5480-4f43-9b55-bfda72999d38","block_type":"box","text":"North American Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital","page_number":32,"box":{"x":266,"y":529,"width":587,"height":10}},{"id":"d6ca03c5-8b99-420f-82b0-f5641ec6fc33","block_type":"box","text":"Markets Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":32,"box":{"x":266,"y":539,"width":581,"height":11}},{"id":"dea5fd17-492f-4d07-8d8c-b628e778d132","block_type":"box","text":"expertise across asset classes and strategies, and insight and perspective on the markets and the economy.","page_number":32,"box":{"x":266,"y":550,"width":608,"height":10}},{"id":"17412356-d188-4073-9292-6194ad4837d5","block_type":"box","text":"In addition, Mr. Ailman serves as a member of the Governance Committee and the Performance","page_number":32,"box":{"x":266,"y":560,"width":557,"height":10}},{"id":"670637aa-255e-469e-b8e5-cd9b2ae7f71f","block_type":"box","text":"Oversight Committee.","page_number":32,"box":{"x":266,"y":570,"width":127,"height":11}},{"id":"8929d4d0-589c-4a07-80bc-0b169cf7fd38","block_type":"box","text":"Susan J. Carter Susan J. Carter has over 35 years of experience in investment management. She has served as President &","page_number":32,"box":{"x":116,"y":586,"width":760,"height":10}},{"id":"e96ccf20-1055-4ece-967d-61d0c5430bb6","block_type":"box","text":"Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a registered investment adviser focused on","page_number":32,"box":{"x":266,"y":596,"width":614,"height":10}},{"id":"591ad403-5301-430b-a75f-c8f9ed733679","block_type":"box","text":"non-profit investors, from 1997 to 2013, Chief Executive Officer of CCI from 2013 to 2014 and Senior","page_number":32,"box":{"x":266,"y":607,"width":600,"height":10}},{"id":"3dee726b-cc7c-4570-95f2-dc89c388ae77","block_type":"box","text":"Advisor to CCI in 2015. Ms. Carter also served as director of the Pacific Pension Institute from 2014 to","page_number":32,"box":{"x":266,"y":617,"width":600,"height":8}},{"id":"0a142bb7-3b9b-4521-9819-13a1b5915d4a","block_type":"box","text":"2018, trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board Member for","page_number":32,"box":{"x":266,"y":627,"width":598,"height":11}},{"id":"7ac21758-667f-48cf-a526-a4cf89d99244","block_type":"box","text":"the Center for Private Equity and Entrepreneurship at Tuck School of Business from 1997 to 2021,","page_number":32,"box":{"x":266,"y":638,"width":573,"height":10}},{"id":"e3e8d78c-812c-4ebb-b5f1-5a14079ca4a6","block_type":"box","text":"Advisory Board Member for Bridges Fund Management from 2016 to 2018, Advisory Board Member for","page_number":32,"box":{"x":266,"y":648,"width":612,"height":10}},{"id":"45b74139-12d7-4b4b-8b30-958fe5464017","block_type":"box","text":"Girls Who Invest from 2015 to 2018 and Board Member thereof from 2018 to 2022 and Practitioner","page_number":32,"box":{"x":266,"y":658,"width":587,"height":8}},{"id":"0c051546-c781-4424-a33e-534d33bbb0ca","block_type":"box","text":"Advisory Board Member for Private Capital Research Institute (“PCRI”) from 2017 to 2024. She","page_number":32,"box":{"x":266,"y":669,"width":564,"height":10}},{"id":"43b6b33b-4c88-431b-b0e4-209b0d1f28ee","block_type":"box","text":"currently serves as Member of the President’s Counsel for Commonfund. These positions have provided","page_number":32,"box":{"x":266,"y":679,"width":601,"height":10}},{"id":"6de87b16-07ed-4bbf-ab40-cb5f3eadb32f","block_type":"box","text":"her with insight and perspective on the markets and the economy.","page_number":32,"box":{"x":266,"y":689,"width":380,"height":11}},{"id":"6feee48e-6e8e-4c22-8d44-ae7e653a6e08","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the position of Chief","page_number":32,"box":{"x":116,"y":705,"width":767,"height":10}},{"id":"39729504-fa61-4881-9140-e8b25028eace","block_type":"box","text":"Investment Officer of Williams College from October 2006 to June 2023. Prior to that she was President","page_number":32,"box":{"x":266,"y":715,"width":606,"height":10}},{"id":"a9dc2bcd-5c9e-4ef7-b929-a7240ac89615","block_type":"box","text":"and Chief Investment Officer of Lucent Asset Management Corporation, where she oversaw\r\n$","page_number":32,"box":{"x":266,"y":725,"width":534,"height":11}},{"id":"a7d25f2d-e691-4ff9-a42d-8626d2900e63","block_type":"box","text":"gp\r\napproximately $40 billion in pension and retirement savings assets for the company. These positions have","page_number":32,"box":{"x":266,"y":736,"width":612,"height":10}},{"id":"5d7ecdff-7ca5-45a8-b1ef-c5594b51e344","block_type":"box","text":"provided her with insight and perspective on the markets and the economy.","page_number":32,"box":{"x":266,"y":746,"width":435,"height":10}},{"id":"1b6383be-5039-4a9f-a362-52637c5ae7db","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry, including 19 years at","page_number":32,"box":{"x":116,"y":762,"width":765,"height":10}},{"id":"2ddc2e9a-efa7-432c-b904-10e2fc14d087","block_type":"box","text":"Bank of America Corporation and its affiliates, where he served, at different times, as the Chief Financial","page_number":32,"box":{"x":266,"y":772,"width":607,"height":10}},{"id":"3ea8055e-5bdb-42d9-8567-c5656dc28211","block_type":"box","text":"Officer of various businesses including Investment Banking, Global Markets, Wealth Management and","page_number":32,"box":{"x":266,"y":782,"width":595,"height":11}},{"id":"7ca47a38-e959-4fbc-b535-9cbc03e523f2","block_type":"box","text":"Consumer and also served ten years as the Chief Accounting Officer for Bank of America Corporation.","page_number":32,"box":{"x":266,"y":793,"width":596,"height":10}},{"id":"4be6bdf0-7c52-4d51-946a-2e77bc716fea","block_type":"box","text":"Mr. Cotty has been determined by the Audit Committee to be an audit committee financial expert, as such","page_number":32,"box":{"x":266,"y":803,"width":616,"height":10}},{"id":"4cde08da-8785-41ce-9df5-4691420eeb45","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":32,"box":{"x":266,"y":813,"width":295,"height":11}},{"id":"db99ccec-3248-4b6b-85f4-a89738ec5726","block_type":"box","text":"I-15","page_number":32,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"5ae3be96-2851-4f7f-a6a1-e005dbc0d11e","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":32,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0cf8f0fd-ca1a-4a12-a9bb-dff3883d8033","block_type":"box","text":"Director","page_number":33,"box":{"x":116,"y":76,"width":48,"height":8}},{"id":"54f7f8ff-0640-426a-a621-39cc0476a217","block_type":"box","text":"Experience, Qualifications and Skills","page_number":33,"box":{"x":266,"y":76,"width":212,"height":10}},{"id":"06a8dd62-e9a1-4c84-a58a-55c746139d88","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and global expertise \r\nd hh hlbl fl d bh","page_number":33,"box":{"x":116,"y":94,"width":745,"height":11}},{"id":"b94aa659-3521-4c75-bb1d-f94f58ba8aa9","block_type":"box","text":"y gy, , p, ggp\r\ngained through his 35 year career at KPMG, a global professional services organization and by his service\r\ndbh blld lhld hh","page_number":33,"box":{"x":266,"y":104,"width":611,"height":11}},{"id":"3fe38815-7c02-4bea-b190-983a8d4361ef","block_type":"box","text":"ggy, gpgy \r\nas a director to both publicly and privately held organizations. He has extensive experience with issues\r\nfllbl d fl dk","page_number":33,"box":{"x":266,"y":114,"width":593,"height":10}},{"id":"52eb8fa4-b5ae-45cb-b3cd-6cb2fd6bfbad","block_type":"box","text":"py py gp\r\nfacing complex, global companies and expertise in financial reporting, accounting, auditing, risk\r\nd lfffh lld","page_number":33,"box":{"x":266,"y":124,"width":558,"height":10}},{"id":"00da255c-d946-40aa-8271-ecbcd78ed1c6","block_type":"box","text":"g p, gpppg, g, g, \r\nmanagement, and regulatory affairs for such companies. Mr. Keizer’s experience also includes service as\r\ndhbh blld lhld d","page_number":33,"box":{"x":266,"y":134,"width":601,"height":10}},{"id":"36832757-3dc3-4952-8671-5624dc247a6d","block_type":"box","text":"g, gy pp\r\nan audit committee chair to both publicly and privately held organizations across numerous industries\r\nldfl d ldfd fl","page_number":33,"box":{"x":266,"y":144,"width":591,"height":10}},{"id":"7e6f3ad4-e71e-416f-bfb0-4b6088cfd68f","block_type":"box","text":"py py g\r\nincluding professional services, property and casualty reinsurance, insurance, diversified financial services,\r\nbkdbbd hlfd bl","page_number":33,"box":{"x":266,"y":153,"width":613,"height":11}},{"id":"1c29b2c2-e83c-4fcf-9a9e-bb3709816333","block_type":"box","text":"g p, ppy y , , \r\nbanking, direct to consumer, business to business and technology. Mr. Keizer is a certified public\r\nd ld hbd f hAf fd blA","page_number":33,"box":{"x":266,"y":163,"width":561,"height":10}},{"id":"ab62742e-67a5-4ba9-b359-13c8a543fdca","block_type":"box","text":"g, , gyp\r\naccountant and also served on the board of the American Institute of Certified Public Accountants.","page_number":33,"box":{"x":266,"y":173,"width":572,"height":8}},{"id":"cce110a4-f716-498e-87be-4b313ae37afb","block_type":"box","text":"Mr. Keizer has been determined by the Audit Committee to be an audit committee financial expert, as\r\nh dfd hlbll","page_number":33,"box":{"x":266,"y":183,"width":590,"height":10}},{"id":"ddaaa3d9-d671-4e58-9ec2-561ca03c0a9c","block_type":"box","text":"y \r\nsuch term is defined in the applicable Commission rules.","page_number":33,"box":{"x":266,"y":193,"width":325,"height":10}},{"id":"a97e0129-841e-4e36-b429-d8510d2f959b","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered investment companies, \r\nlbf hbdf lkkdd dd dfd","page_number":33,"box":{"x":116,"y":208,"width":752,"height":10}},{"id":"0a822411-28f9-4d21-a68b-389c6837749d","block_type":"box","text":"ygy ygp\r\nmost recently as a member of the boards of certain BlackRock-advised Funds and predecessor funds,\r\nldhlll h fdThd bf","page_number":33,"box":{"x":266,"y":217,"width":582,"height":11}},{"id":"70edee35-56f2-4932-84ec-8d3e106f4f56","block_type":"box","text":"y p,\r\nincluding the legacy Merrill Lynch Investment Managers, L.P. (“MLIM”) funds. The Board benefits from\r\nhf dfd hl","page_number":33,"box":{"x":266,"y":227,"width":610,"height":11}},{"id":"9b51f3ee-5cd3-4e7d-bb1e-87e7d04184fc","block_type":"box","text":"g gy yg, () \r\nMs. Montgomery’s more than 20 years of academic experience as a professor at Harvard Business School\r\nhhhd lh","page_number":33,"box":{"x":266,"y":237,"width":611,"height":10}},{"id":"74784113-7f56-40fd-a89b-c29888c94bd2","block_type":"box","text":"gyypp\r\nwhere she taught courses on corporate strategy and corporate governance. Ms. Montgomery also has\r\nbd hh hhb","page_number":33,"box":{"x":266,"y":247,"width":586,"height":10}},{"id":"3d4f61a7-2eaf-48f8-887a-c986eafef291","block_type":"box","text":"gpgy pggy \r\nbusiness management and corporate governance experience through her service on the corporate boards\r\nf f blhhlhd ld bkh","page_number":33,"box":{"x":266,"y":257,"width":603,"height":10}},{"id":"09d415b8-35d2-4eb5-b9f7-08e3052daaa7","block_type":"box","text":"gpgpgp\r\nof a variety of public companies. She has also authored numerous articles and books on these topics.","page_number":33,"box":{"x":266,"y":267,"width":582,"height":10}},{"id":"f86ab3ae-c17c-4e63-8f57-60edd581b2fd","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive experience, including \r\nhh hddd hfdd f","page_number":33,"box":{"x":116,"y":282,"width":738,"height":10}},{"id":"c9ae650c-bf46-4095-9383-d0be5b46e455","block_type":"box","text":"py y, gp, g through his service as president, director and investment committee chair for academic and not-for-profit\r\nd hdd ddldh","page_number":33,"box":{"x":266,"y":291,"width":608,"height":11}},{"id":"9f7fc802-4529-4f56-a5f1-aab0ed43102d","block_type":"box","text":"gp, p\r\norganizations, and his experience as a partner, managing director and advisory director at Goldman Sachs\r\nflhbd bf Ahl","page_number":33,"box":{"x":266,"y":301,"width":614,"height":10}},{"id":"aa2a14d5-fb3e-4a67-945c-e2473e8ca3eb","block_type":"box","text":"g, pp, gg y \r\nfor 32 years. He also has investment management experience as a board member of Athena Capital\r\nAd","page_number":33,"box":{"x":266,"y":311,"width":575,"height":10}},{"id":"1415032e-f197-4f50-b072-50015da88960","block_type":"box","text":"y\r\nAdvisors LLC.","page_number":33,"box":{"x":266,"y":321,"width":83,"height":8}},{"id":"a07715cd-43eb-410a-958a-e158b2f84fda","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry, most notably as the f\r\nf hfff ld f hd","page_number":33,"box":{"x":116,"y":336,"width":759,"height":10}},{"id":"990e2deb-0990-4d2d-91f1-5495b0ee34a6","block_type":"box","text":"ypy, y \r\nfirst Director of the Office of Compliance Inspections and Examinations (“OCIE”) of the Securities and\r\nhfhf hld h","page_number":33,"box":{"x":266,"y":346,"width":600,"height":10}},{"id":"def2dba9-9896-4f53-8ed6-d249cae3a292","block_type":"box","text":"pp() \r\nExchange Commission (“SEC”) from 1995 to 2009. During 14 years as the Director of OCIE, she led the\r\ndhfdl fdhdfdbkdl","page_number":33,"box":{"x":266,"y":355,"width":611,"height":11}},{"id":"51093fb7-89ac-45d8-b45b-8eb82123cf47","block_type":"box","text":"g() g y, \r\nSEC’s nationwide examination oversight program for advisers, mutual funds, hedge funds, broker-dealers,\r\nk hd hdfhfhhld lh","page_number":33,"box":{"x":266,"y":365,"width":615,"height":10}},{"id":"24b9c5fa-3174-402c-8e5e-9c0cf04d4d01","block_type":"box","text":"gpg, , g, \r\nstock exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various roles at the\r\nldAfffhfl ffd","page_number":33,"box":{"x":266,"y":375,"width":607,"height":10}},{"id":"4642c130-e2e3-4cb5-97c8-f25aa4ec8676","block_type":"box","text":"g, y , , \r\nSEC, including Associate Director for Enforcement for the SEC’s Pacific Regional Office and executive\r\nd dhhAhlhdd","page_number":33,"box":{"x":266,"y":385,"width":593,"height":10}},{"id":"63ae9b9f-cfb2-4ebd-a76b-1bfad269f5cf","block_type":"box","text":", g g\r\nassistant and senior advisor to then SEC Chairman Arthur Levitt. More recently, Ms. Richards served as\r\nhf lfff hAd lh lbl lf b","page_number":33,"box":{"x":266,"y":395,"width":604,"height":10}},{"id":"39b88cce-3e05-4e71-9fa9-b12ef498aeae","block_type":"box","text":"y, \r\nChief Compliance Officer of the Asset and Wealth Management global lines of business at JPMorgan\r\nhfhhld lbl ldd bld","page_number":33,"box":{"x":266,"y":405,"width":586,"height":10}},{"id":"aae68673-a0d3-4113-8007-db8c15fdd7b3","block_type":"box","text":"pggJg\r\nChase & Co. from 2013 to 2018 where she led its global compliance program, advised business leaders\r\nlk d d d","page_number":33,"box":{"x":266,"y":414,"width":599,"height":11}},{"id":"62d46281-f9d6-4368-b136-5369af720237","block_type":"box","text":"gppg, \r\non compliance issues, oversaw risk assessment, monitoring, testing and training, and maintained\r\nlhh lddhdd bf hl Ad","page_number":33,"box":{"x":266,"y":424,"width":557,"height":10}},{"id":"f78cdf31-ea8f-44f5-9479-ad769fa3c851","block_type":"box","text":"p, , g, g g, \r\nrelationships with regulators. In addition, Ms. Richards served as a member of the National Adjudicatory\r\nl f hl dlAhAfd hld hh","page_number":33,"box":{"x":266,"y":434,"width":611,"height":10}},{"id":"81e07a25-141e-4b0f-9a74-a53b037fa68f","block_type":"box","text":"pg, j\r\nCouncil of the Financial Industry Regulatory Authority (FINRA) from 2019 to 2022 and held the chair\r\nd hdhhfhl","page_number":33,"box":{"x":266,"y":444,"width":598,"height":10}},{"id":"4ce3d6be-68da-47c1-b74d-e4066dc17f65","block_type":"box","text":"y gy y () \r\nand vice chair posts during her tenure. Prior thereto, from 2010 to 2013, she was a Principal at\r\nhd ldf Al","page_number":33,"box":{"x":266,"y":454,"width":551,"height":10}},{"id":"34605c25-eec1-4729-a305-49a3420cf7bf","block_type":"box","text":"pg , , p\r\nPricewaterhouseCoopers LLP (“PwC”) and co-leader of its Asset Management Regulatory group. At\r\nhd bd f fl ldd lk","page_number":33,"box":{"x":266,"y":463,"width":583,"height":11}},{"id":"2787659a-0662-4d77-ba62-461b25802cd7","block_type":"box","text":"p() ggy g\r\nPwC, she assisted a broad range of financial services clients in designing and implementing risk\r\nd ld flTh","page_number":33,"box":{"x":266,"y":473,"width":549,"height":11}},{"id":"25cca28a-3b27-44af-a5db-64284d4605a9","block_type":"box","text":", ggg pg \r\nmanagement and compliance programs, and preparing for new regulatory expectations. These positions\r\nhdd hh hd hkd hll","page_number":33,"box":{"x":266,"y":483,"width":601,"height":10}},{"id":"093ce568-d193-4f43-95bb-61ab9c18dff0","block_type":"box","text":"gppg, ppg gy pp\r\nhave provided her with insight and perspective on the markets and the economy, as well as asset\r\nld lddhdbf hA","page_number":33,"box":{"x":266,"y":493,"width":557,"height":10}},{"id":"eff43682-e861-4b0e-97af-d5789f7bd4b4","block_type":"box","text":"pgppy, \r\nmanagement regulation and compliance. In addition, Ms. Richards serves as a member of the Audit\r\nd hl","page_number":33,"box":{"x":266,"y":503,"width":576,"height":10}},{"id":"333b13c6-6884-48d7-a545-af5aff36a71d","block_type":"box","text":"ggp\r\nCommittee and the Compliance Committee.","page_number":33,"box":{"x":266,"y":513,"width":255,"height":10}},{"id":"2b094a15-c3ea-4716-ab6b-c599a88a27a4","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management from his over 13 \r\nf hhf fff hf lll fh","page_number":33,"box":{"x":116,"y":528,"width":748,"height":10}},{"id":"50e69a90-4b15-416b-bc36-051aec06bd38","block_type":"box","text":"gpg g\r\nyears of service as the Chief Investment Officer of the University of Delaware as well as from his various\r\nh lddd f","page_number":33,"box":{"x":266,"y":537,"width":603,"height":11}},{"id":"e2c1182e-9d0a-4351-9439-9856e67196df","block_type":"box","text":"yy \r\npositions with First Union Corporation, including Senior Vice President and State Investment Director of\r\nAdThd bffhd hhf","page_number":33,"box":{"x":266,"y":547,"width":608,"height":10}},{"id":"922deeab-c2c6-4aa6-86f4-b2b42d4ccbdc","block_type":"box","text":"pp, g \r\nFirst Investment Advisors. The Board benefits from his experience and perspective as the Chief Investment\r\nfff dd fhhhd f","page_number":33,"box":{"x":266,"y":557,"width":614,"height":10}},{"id":"4c9b5010-6975-49b7-a12f-d052cd36a30e","block_type":"box","text":"ppp\r\nOfficer of a university endowment and from the oversight experience he gained from service on various\r\nd fbd","page_number":33,"box":{"x":266,"y":567,"width":598,"height":10}},{"id":"ae2a18b0-0e13-4efe-b65c-905de7c83f21","block_type":"box","text":"y \r\nprivate and non-profit boards.","page_number":33,"box":{"x":266,"y":577,"width":175,"height":10}},{"id":"c1250c05-195b-457b-ae00-1532a593a1ed","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment companies, most \r\nlbf hbdf lkkdd dd dfdld","page_number":33,"box":{"x":116,"y":592,"width":741,"height":10}},{"id":"18ac9cbc-48c2-49a3-8a23-798754de24d2","block_type":"box","text":"ygp, \r\nrecently as a member of the boards of certain BlackRock-advised Funds and predecessor funds, including\r\nhllkk fdhf blh h","page_number":33,"box":{"x":266,"y":601,"width":608,"height":11}},{"id":"b45ead30-2560-4dd4-8196-af3d20c85710","block_type":"box","text":"y p, \r\nthe legacy BlackRock funds. He has over 30 years of experience in public accounting. Mr. Urish has\r\nd bf d lfh hbdd","page_number":33,"box":{"x":266,"y":611,"width":578,"height":10}},{"id":"5dfab664-59ac-48e3-99a7-e452e9432b4a","block_type":"box","text":"gy yppg\r\nserved as a managing member of an accounting and consulting firm. Mr. Urish has been determined by\r\nhAdbdfl h dfd hlbl","page_number":33,"box":{"x":266,"y":621,"width":597,"height":10}},{"id":"f084b59b-cba6-4421-a7f8-69e80dcaa6dd","block_type":"box","text":"gg g g y\r\nthe Audit Committee to be an audit committee financial expert, as such term is defined in the applicable\r\nl","page_number":33,"box":{"x":266,"y":631,"width":602,"height":10}},{"id":"a4d8b9e6-ba75-4701-9312-c2b69fd02737","block_type":"box","text":"Commission rules.","page_number":33,"box":{"x":266,"y":641,"width":106,"height":8}},{"id":"d7bcb034-f3bc-41e1-a4ff-fd6eff24e00d","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has served as the Chief \r\nffd hf l fff bAf","page_number":33,"box":{"x":116,"y":656,"width":757,"height":10}},{"id":"42ae489f-a424-4b27-9c85-b5538ed759f4","block_type":"box","text":"ypg\r\nOperating Officer and Chief Financial Officer of Liberty Square Asset Management, LP from 1998 to\r\nhld lhd","page_number":33,"box":{"x":266,"y":666,"width":588,"height":10}},{"id":"63ae802b-2b17-4b8e-8cbd-f67e9926e06a","block_type":"box","text":"pg y qg, \r\n2015, an investment manager that specialized in long/short non-U.S. equity investments, and was an\r\nd l f bl ff","page_number":33,"box":{"x":266,"y":675,"width":580,"height":11}},{"id":"083c3328-4046-456d-ac9d-57b3565b1639","block_type":"box","text":", gpgqy , \r\nowner and General Partner of Neon Liberty Capital Management, LLC from 2003 to 2023, a firm\r\nflhlbl d fkThh","page_number":33,"box":{"x":266,"y":685,"width":571,"height":10}},{"id":"ae8d71b6-abaa-43e8-aa41-51124b4c311d","block_type":"box","text":"y pg, , \r\nfocusing on long/short equities in global emerging and frontier markets. These positions have provided her\r\nh hd hkd h","page_number":33,"box":{"x":266,"y":695,"width":617,"height":10}},{"id":"c464528e-1375-4b17-9189-860917d61480","block_type":"box","text":"g gqggg \r\nwith insight and perspective on the markets and the economy.","page_number":33,"box":{"x":266,"y":705,"width":358,"height":10}},{"id":"b00e5f17-54cc-4d96-bf1b-09d1a7c24e4a","block_type":"box","text":"Directors Elect","page_number":33,"box":{"x":116,"y":722,"width":87,"height":8}},{"id":"eb8864dc-c0b4-482e-aa1c-b2b31a1c1bae","block_type":"box","text":"Jeffrey Jarczyk Mr. Jarczyk is a CPA and has more than 30 years of experience in the financial services industry, \r\nlddlhhddffhhf A","page_number":33,"box":{"x":115,"y":737,"width":711,"height":11}},{"id":"c53cf6f9-ba0c-4bac-a342-39e76ac222e7","block_type":"box","text":"Jyypy, including over 19 years at Fidelity Investments, where he served, at different times, as the Chief Auditor\r\nd hhf Afff dlk","page_number":33,"box":{"x":266,"y":747,"width":600,"height":10}},{"id":"3398421f-8189-4b9d-8f77-c285ef80e5a3","block_type":"box","text":"g yy , , , \r\nand the Chief Accounting Officer of Fidelity Investments’ parent company, FMR LLC. Prior to working at\r\ndlk ld AhAdfl","page_number":33,"box":{"x":266,"y":757,"width":617,"height":10}},{"id":"8eb8841a-f967-4736-bedf-656e97c4dd1e","block_type":"box","text":"g y ppy, g \r\nFidelity, Mr. Jarczyk was a partner at Deloitte and Arthur Andersen for approximately seventeen years.\r\nThhlld hk lh dd k d","page_number":33,"box":{"x":266,"y":767,"width":599,"height":10}},{"id":"322a4ea3-b659-4178-b782-fe6fe9d83e19","block_type":"box","text":"y, Jypppy y\r\nThese positions have allowed him to work extensively with audit and risk committees and company\r\nhldfd kffl","page_number":33,"box":{"x":266,"y":777,"width":578,"height":10}},{"id":"046d050a-a9f0-4da9-8709-e998210c105c","block_type":"box","text":"py \r\nexecutives helping to identify, manage and mitigate risks for financial services companies.","page_number":33,"box":{"x":266,"y":786,"width":517,"height":11}},{"id":"e829e2e6-2e51-4b39-b976-fa400cf6165b","block_type":"box","text":"Marc D. Stern","page_number":33,"box":{"x":116,"y":802,"width":82,"height":7}},{"id":"826ef407-d204-4a2f-a556-503c43d55543","block_type":"box","text":"Mr. Stern has more than 30 years of experience in inve\r\nhf ffTlh","page_number":33,"box":{"x":266,"y":801,"width":307,"height":11}},{"id":"139ce7b5-9e31-4c1f-8412-4910a552a9e6","block_type":"box","text":"sting and asset management. Mr. Stern served as the \r\nbfh","page_number":33,"box":{"x":574,"y":801,"width":293,"height":11}},{"id":"dc4a0731-f924-45f4-bce5-3d6427fce4eb","block_type":"box","text":"yp\r\nChief Executive Officer at Bessemer Trust, a wealth ma\r\nd hfbd f","page_number":33,"box":{"x":266,"y":811,"width":310,"height":10}},{"id":"e6e73a05-2d2f-4a0a-b85c-ab27b58ca71e","block_type":"box","text":"g g\r\nnagement business, for 13 years. During his tenure at \r\nf dhd hbdd","page_number":33,"box":{"x":577,"y":811,"width":298,"height":10}},{"id":"6774f6a6-c688-4a4b-b8a0-78c355078503","block_type":"box","text":", \r\nBessemer Trust, Mr. Stern served on the firm’s board of \r\nd ld hf","page_number":33,"box":{"x":266,"y":821,"width":313,"height":10}},{"id":"d671dc94-30d3-49d3-aff8-59a5afa3bbd9","block_type":"box","text":"g, yg \r\ndirectors, chaired the board’s trust and investment \r\nld hf fff","page_number":33,"box":{"x":583,"y":821,"width":282,"height":10}},{"id":"9a86aa53-0653-49a6-a606-a8d2d353bd9b","block_type":"box","text":", \r\ncommittee, and led the firm’s executive committee. He al\r\nhhhf hld","page_number":33,"box":{"x":266,"y":831,"width":319,"height":10}},{"id":"eba9760d-9e8e-4c66-b76d-daea1704aeb3","block_type":"box","text":", \r\nso served as Bessemer’s Chief Investment Officer for","page_number":33,"box":{"x":586,"y":831,"width":292,"height":8}},{"id":"08d56c0d-bd7a-40cb-9872-bd2f4d79ed19","block_type":"box","text":", \r\n8 years, where he was Chair of the Investment Policy and Strategy Committee with responsibility for overall\r\nlld ld hf hl","page_number":33,"box":{"x":267,"y":841,"width":605,"height":10}},{"id":"7c5dba6d-00af-4456-a41f-db71ca31c236","block_type":"box","text":"y, y \r\nasset allocation and investment strategy. Mr. Stern al\r\nAllThd","page_number":33,"box":{"x":266,"y":851,"width":297,"height":10}},{"id":"5c8d6c42-09a9-4d87-ab88-ef62822eb9d6","block_type":"box","text":"gy py \r\nso served as Chair of the Private Clients Investment","page_number":33,"box":{"x":564,"y":851,"width":287,"height":8}},{"id":"c6b51857-3621-45b4-95ee-146322262a61","block_type":"box","text":"gy\r\ngroup at AllianceBernstein. These positions provide Mr. \r\nhd fd","page_number":33,"box":{"x":266,"y":860,"width":313,"height":11}},{"id":"cafe309e-2223-4760-8898-8ee469c8a34c","block_type":"box","text":"Stern with insight and perspective into investment","page_number":33,"box":{"x":584,"y":860,"width":279,"height":11}},{"id":"71886f85-4b09-46c4-b27a-3f3ebcfd8660","block_type":"box","text":"gp pp\r\nmanagement, the economy, and fiduciary governance.","page_number":33,"box":{"x":266,"y":870,"width":302,"height":10}},{"id":"c4266d36-c66a-40c8-b850-898a7b590ca3","block_type":"box","text":"I-16","page_number":33,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"52fa6758-1ddb-4226-be6b-25c1c4fa0368","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":33,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2219438e-4156-4611-9fbe-24a8cc853acb","block_type":"box","text":"Director","page_number":34,"box":{"x":116,"y":76,"width":48,"height":8}},{"id":"f2a95341-a74f-44c4-b112-99fb6a800c81","block_type":"box","text":"Experience, Qualifications and Skills","page_number":34,"box":{"x":266,"y":76,"width":212,"height":10}},{"id":"356ab893-e858-4cc0-8244-2807a0b4e1e8","block_type":"box","text":"Interested Directors","page_number":34,"box":{"x":116,"y":97,"width":115,"height":8}},{"id":"95df8817-b2e1-47e9-9222-ae320bbafc85","block_type":"box","text":"Robert Fairbairn Robert Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30 years of \r\nfd lbh","page_number":34,"box":{"x":116,"y":112,"width":715,"height":10}},{"id":"1da11bc5-0632-4c5e-af45-ffbeee586790","block_type":"box","text":"yp, y\r\nexperience in finance and asset management. In particular, Mr. Fairbairn’s positions as Vice Chairman of\r\nlkkbf lkklbl d hf lkk","page_number":34,"box":{"x":266,"y":122,"width":610,"height":10}},{"id":"fe0b52bf-6b21-47ca-bd56-ed6b17b6da62","block_type":"box","text":"pgp, p\r\nBlackRock, Inc., Member of BlackRock’s Global Operating Committee and Co-Chair of BlackRock’s\r\nl dhd h lh f l bkldd","page_number":34,"box":{"x":266,"y":132,"width":588,"height":10}},{"id":"b68e1233-624d-48ed-8e5a-4b4c305fcff0","block_type":"box","text":", , pg \r\nHuman Capital Committee provide the Board with a wealth of practical business knowledge and\r\nldhddbhlbl d h","page_number":34,"box":{"x":266,"y":141,"width":561,"height":11}},{"id":"ecfeb13e-a2b3-4401-84e7-1e7d8af156f0","block_type":"box","text":"pppg\r\nleadership. In addition, Mr. Fairbairn has global investment management and oversight experience\r\nhh hfbf lkklbl lbl","page_number":34,"box":{"x":266,"y":151,"width":571,"height":11}},{"id":"b3f5a624-657f-4ae0-b303-5eb3b9b8bc17","block_type":"box","text":"p, gggp\r\nthrough his former positions as Member of BlackRock’s Global Executive Committee, Global Head of\r\nlkkl d h\r\n® b\r\nd f lkklbl lhf","page_number":34,"box":{"x":266,"y":161,"width":594,"height":10}},{"id":"9bb946f1-175b-453a-bce3-15742e8fdb05","block_type":"box","text":"gp\r\nBlackRock’s Retail and iShares","page_number":34,"box":{"x":266,"y":171,"width":179,"height":8}},{"id":"bae15487-d3fb-4c0d-8e2f-85201608ce34","block_type":"box","text":"®","page_number":34,"box":{"x":446,"y":171,"width":7,"height":5}},{"id":"c6f3fcc1-f960-4fb5-addb-a4c0015da058","block_type":"box","text":", \r\nbusinesses, Head of BlackRock’s Global Client Group, Chairman of \r\nd hhlkk","page_number":34,"box":{"x":458,"y":171,"width":394,"height":10}},{"id":"6260427c-f65a-404b-bbd8-941dc4c9f550","block_type":"box","text":", p, \r\nBlackRock’s international businesses and his previous oversight over BlackRock’s Strategic Partner\r\nd dblbd bf","page_number":34,"box":{"x":266,"y":181,"width":572,"height":10}},{"id":"ccfb06d9-8081-42d4-bf0b-2107e34c97e2","block_type":"box","text":"pgg\r\nProgram and Strategic Product Management Group. Mr. Fairbairn also serves as a board member for the\r\nfdhlkk dl","page_number":34,"box":{"x":266,"y":191,"width":609,"height":10}},{"id":"dfef25ef-4a00-445e-a708-47cf38be9851","block_type":"box","text":"ggg\r\nfunds in the BlackRock Fixed-Income Complex.","page_number":34,"box":{"x":266,"y":200,"width":277,"height":11}},{"id":"3bc8795c-c016-467f-ace7-6cd604eb6eaf","block_type":"box","text":"John M. Perlowski John M. Perlowski’s experience as Managing Director of BlackRock, Inc. since 2009, as the Head \r\nf lkk lbl Ad dd dd hf","page_number":34,"box":{"x":115,"y":215,"width":717,"height":11}},{"id":"020290e3-b7a1-45ef-bfee-e7166562603e","block_type":"box","text":"Jpgg , , \r\nof BlackRock Global Accounting and Product Services since 2009, and as President and Chief Executive\r\nfff hlkkdd ddhh ddf hlkk","page_number":34,"box":{"x":266,"y":225,"width":603,"height":10}},{"id":"f866724f-d3c9-4c55-85ee-edc804ce732b","block_type":"box","text":"g , \r\nOfficer of the BlackRock-advised Funds provides him with a strong understanding of the BlackRock\r\ndd dhd hbd lfhlkkdd","page_number":34,"box":{"x":266,"y":235,"width":585,"height":10}},{"id":"3ad34131-bea6-44fc-b0bc-fdbe773e7128","block_type":"box","text":"pg g \r\nadvised Funds, their operations, and the business and regulatory issues facing the BlackRock-advised\r\ndlkd hf fff hlb","page_number":34,"box":{"x":266,"y":245,"width":583,"height":10}},{"id":"0ebd6062-59d6-4f20-827f-cad67e85fa44","block_type":"box","text":", p, gy g \r\nFunds. Mr. Perlowski’s prior position as Managing Director and Chief Operating Officer of the Global\r\ndldhAd hfTd","page_number":34,"box":{"x":266,"y":255,"width":596,"height":10}},{"id":"6071fb45-53b2-4607-a7e3-e5b45b83b015","block_type":"box","text":"ppgg pg \r\nProduct Group at Goldman Sachs Asset Management, and his former service as Treasurer and Senior\r\ndf hldhl dd f hldhffh","page_number":34,"box":{"x":266,"y":264,"width":586,"height":11}},{"id":"2f8906f9-55c0-4e92-a3e4-18e12bceada2","block_type":"box","text":"p g, \r\nVice President of the Goldman Sachs Mutual Funds and as Director of the Goldman Sachs Offshore","page_number":34,"box":{"x":266,"y":274,"width":579,"height":8}},{"id":"e440cb28-9306-4c23-b28e-82ee6d6db08d","block_type":"box","text":"Funds provides the Board with the benefit of his experience with the management practices of other\r\nfl lklbd bfhfdhlkk","page_number":34,"box":{"x":266,"y":284,"width":577,"height":10}},{"id":"8d10f93a-80a5-47c3-acf1-883aa53d1072","block_type":"box","text":"ppgp\r\nfinancial companies. 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Perlowski None None None None None None None","page_number":39,"box":{"x":129,"y":421,"width":710,"height":10}},{"id":"9176736c-6a37-4d62-b3bf-f7b908dd0a3a","block_type":"box","text":"1","page_number":39,"box":{"x":128,"y":447,"width":4,"height":5}},{"id":"6d9728b0-9e9c-4a0c-91c1-35e350f50d4a","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Director receives compensation, see “Biographical Information”","page_number":39,"box":{"x":146,"y":446,"width":734,"height":11}},{"id":"da259026-9dfd-4df4-b721-cfce811867f2","block_type":"box","text":"beginning on page I-17.","page_number":39,"box":{"x":147,"y":457,"width":136,"height":10}},{"id":"0b085753-d446-40c8-96c4-ac64ebdd91b2","block_type":"box","text":"2","page_number":39,"box":{"x":128,"y":468,"width":4,"height":4}},{"id":"a9118eff-68e2-48f4-b504-5994fdcf3cd1","block_type":"box","text":"Chair of the Audit Committee.","page_number":39,"box":{"x":147,"y":467,"width":176,"height":8}},{"id":"dfda0564-427f-425e-bbf9-73dcabd28eba","block_type":"box","text":"3","page_number":39,"box":{"x":128,"y":478,"width":4,"height":5}},{"id":"8792b9da-1f6a-4988-be24-3624f4a75788","block_type":"box","text":"Chair of the Governance Committee.","page_number":39,"box":{"x":147,"y":477,"width":213,"height":8}},{"id":"1cf115c5-4582-4bfe-a4d8-01e5206cc38a","block_type":"box","text":"4","page_number":39,"box":{"x":128,"y":488,"width":4,"height":5}},{"id":"7e5a4e70-958d-4193-8a17-86265567d961","block_type":"box","text":"Chair of the Performance Oversight Committee.","page_number":39,"box":{"x":147,"y":488,"width":277,"height":10}},{"id":"70f1093d-a6f8-44cf-8830-3bf8dcfdf210","block_type":"box","text":"5","page_number":39,"box":{"x":128,"y":499,"width":4,"height":4}},{"id":"70551fe9-d4f7-4734-bae9-466f21ab48fa","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":39,"box":{"x":147,"y":498,"width":370,"height":10}},{"id":"b778b08f-b216-4b1d-8939-d98cb2504d83","block_type":"box","text":"6","page_number":39,"box":{"x":128,"y":509,"width":4,"height":5}},{"id":"62a98245-8a63-444e-acab-5b677d719595","block_type":"box","text":"Chair of the Compliance Committee.","page_number":39,"box":{"x":147,"y":508,"width":213,"height":11}},{"id":"7450756b-7cc1-4c33-ac62-2b6a38b08209","block_type":"box","text":"IV. 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Pursuant to each Sub-Advisory","page_number":39,"box":{"x":116,"y":757,"width":717,"height":13}},{"id":"02c388f2-b247-4b32-b5d6-9d5b32903fde","block_type":"box","text":"Agreement, each Sub-Adviser receives for the services it provides for that portion of the applicable Portfolio","page_number":39,"box":{"x":116,"y":773,"width":746,"height":12}},{"id":"735f0ea4-9201-411f-a71a-9cd466f84c50","block_type":"box","text":"for which it acts as a sub-advisor a monthly fee calculated at an annual rate equal to a percentage of the","page_number":39,"box":{"x":116,"y":788,"width":720,"height":13}},{"id":"fe894b18-adee-49d2-908d-6e9f44cf377b","block_type":"box","text":"investment advisory fee received by BlackRock from the applicable Portfolio.","page_number":39,"box":{"x":116,"y":804,"width":533,"height":12}},{"id":"dd1ceb53-9f30-4d88-baf5-cc1f3370d5f5","block_type":"box","text":"The Investment Management Agreement will continue in effect for an initial period of two years and from year","page_number":39,"box":{"x":116,"y":827,"width":761,"height":13}},{"id":"b65cea49-0461-43c8-84be-3ae5b1572dff","block_type":"box","text":"to year thereafter if approved annually (a) by the Board of Directors of the Fund or by a majority of the","page_number":39,"box":{"x":116,"y":842,"width":709,"height":13}},{"id":"f0c32723-77a9-4b24-9b2c-e8f1bdc0dfd8","block_type":"box","text":"outstanding shares of the respective Portfolios, and (b) by a majority of the Directors who are not parties to","page_number":39,"box":{"x":116,"y":858,"width":736,"height":13}},{"id":"c50dcad3-4ec5-444d-b8a2-4c9c424b6ca6","block_type":"box","text":"I-22","page_number":39,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"df6b5dee-2f8e-42b3-8326-895ece1d9400","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":39,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"205e2a32-1b3d-40c0-b796-179221f91c6d","block_type":"box","text":"such contract or interested persons (as defined in the Investment Company Act), of any such party. 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The six","page_number":40,"box":{"x":116,"y":257,"width":694,"height":13}},{"id":"476a9c89-3e6f-4c1d-b938-01c8bac00f6b","block_type":"box","text":"Combined Portfolios consist of the five Portfolios and the one series of BlackRock Series Fund II, Inc., the","page_number":40,"box":{"x":117,"y":273,"width":731,"height":12}},{"id":"ad023f9e-d98f-4744-8ff1-f1100aa19d41","block_type":"box","text":"BlackRock High Yield Portfolio.","page_number":40,"box":{"x":116,"y":288,"width":225,"height":13}},{"id":"6d778e86-d71c-4aff-afea-34c4bd3eb2d2","block_type":"box","text":"The portion of the assets of a Combined Portfolio to which the rate at each breakpoint level applies will be","page_number":40,"box":{"x":116,"y":311,"width":741,"height":13}},{"id":"ab3a7012-408c-41cd-a17a-68825650fc25","block_type":"box","text":"determined on a “uniform percentage” basis. The uniform percentage applicable to a breakpoint level is","page_number":40,"box":{"x":116,"y":327,"width":721,"height":13}},{"id":"04b3d540-1081-49d3-98d2-e4b4b8eb1846","block_type":"box","text":"determined by dividing the amount of the aggregate average daily net assets of the six Combined Portfolios","page_number":40,"box":{"x":116,"y":342,"width":742,"height":13}},{"id":"9b03be93-6ad2-4ba2-866d-bc05e602cf26","block_type":"box","text":"that falls within that breakpoint level by the aggregate average daily net assets of the six Combined Portfolios.","page_number":40,"box":{"x":116,"y":358,"width":762,"height":13}},{"id":"3650d50a-3831-4474-b48b-0774e00fbb67","block_type":"box","text":"The amount of the fee for a Combined Portfolio at each breakpoint level is determined by multiplying the","page_number":40,"box":{"x":116,"y":373,"width":732,"height":13}},{"id":"04bdd5fb-2b0f-4590-9b8a-ec6625b005a3","block_type":"box","text":"average daily net assets of that Combined Portfolio by the uniform percentage applicable to that breakpoint","page_number":40,"box":{"x":116,"y":389,"width":748,"height":13}},{"id":"64512f77-fcd0-4881-83cf-6e3560532039","block_type":"box","text":"level and multiplying the product by the applicable management fee rate.","page_number":40,"box":{"x":116,"y":404,"width":505,"height":13}},{"id":"e61918d1-0948-4e19-9678-0c04060e196a","block_type":"box","text":"BlackRock has voluntarily agreed to waive a portion of its fees and/or reimburse operating expenses to enable","page_number":40,"box":{"x":116,"y":428,"width":762,"height":12}},{"id":"8f506560-5237-4bfb-b99d-7470fe21b5a1","block_type":"box","text":"the Government Money Market Portfolio to maintain a minimum daily net investment income dividend.","page_number":40,"box":{"x":116,"y":443,"width":725,"height":13}},{"id":"ad7b6055-e808-42af-b1a6-de1cb845a1cd","block_type":"box","text":"BlackRock may discontinue this waiver and/or reimbursement at any time without notice. Taking into","page_number":40,"box":{"x":116,"y":459,"width":710,"height":12}},{"id":"cc09c264-8abd-4cd7-b262-c84ea4881b66","block_type":"box","text":"account this voluntary waiver and/or reimbursement of fees, the Total Annual Fund Operating Expenses for","page_number":40,"box":{"x":116,"y":474,"width":750,"height":13}},{"id":"0ece1f3c-4e8d-4ae9-8159-6208ba721c98","block_type":"box","text":"the Government Money Market Portfolio may be lower than shown in the Annual Fund Operating Expenses","page_number":40,"box":{"x":116,"y":490,"width":757,"height":12}},{"id":"7502a4d3-e89f-43bd-8003-759d35d50ad4","block_type":"box","text":"table.","page_number":40,"box":{"x":116,"y":505,"width":37,"height":10}},{"id":"bde9fab1-caba-4e3e-8b9a-c7f465127e23","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any portion of each","page_number":40,"box":{"x":116,"y":528,"width":703,"height":13}},{"id":"23d9bb1d-4270-4bf0-a767-a968dcc8351b","block_type":"box","text":"Portfolio’s assets (other than the Government Money Market Portfolio) estimated to be attributable to","page_number":40,"box":{"x":116,"y":544,"width":711,"height":13}},{"id":"2fe447bc-1378-4d24-81ae-89d3e985f1f6","block_type":"box","text":"investments in other equity and fixed-income mutual funds and exchange-traded funds managed by","page_number":40,"box":{"x":116,"y":559,"width":691,"height":13}},{"id":"1f695d12-5553-401a-9feb-4c96782fdf02","block_type":"box","text":"BlackRock or its affiliates that have a contractual management fee, through June 30, 2027. BlackRock has","page_number":40,"box":{"x":116,"y":575,"width":739,"height":13}},{"id":"ee048483-8984-4848-9fc1-a5959323d306","block_type":"box","text":"also contractually agreed to waive the management fee with respect to any portion of Global Allocation","page_number":40,"box":{"x":116,"y":590,"width":720,"height":13}},{"id":"959fab2d-4d42-4084-b3d6-a4499e8029d2","block_type":"box","text":"Portfolio’s assets estimated to be attributable to inv","page_number":40,"box":{"x":116,"y":606,"width":355,"height":10}},{"id":"8d6055a1-a65b-4cf3-97e8-b428c6798671","block_type":"box","text":"estments in other exchange-traded products sponsored by","page_number":40,"box":{"x":472,"y":606,"width":400,"height":13}},{"id":"15f018dd-848b-4643-b048-16a3201ea218","block_type":"box","text":"BlackRock or its affiliates, through June 30, 2027. In addition, with respect to each Portfolio (other than the","page_number":40,"box":{"x":116,"y":621,"width":752,"height":13}},{"id":"b1fcfec4-ae8a-496b-b2e4-cde9d46d9842","block_type":"box","text":"Government Money Market Portfolio), BlackRock has contractually agreed to waive its management fees by","page_number":40,"box":{"x":117,"y":637,"width":755,"height":13}},{"id":"92c12faa-5186-4689-b10e-cc61d0b777ec","block_type":"box","text":"the amount of investment advisory fees the Portfolio pays to BlackRock indirectly through its investment in","page_number":40,"box":{"x":116,"y":652,"width":745,"height":13}},{"id":"c6439d9b-8849-46b7-a7d4-4de1430d5f8a","block_type":"box","text":"money market funds managed by BlackRock or its affiliates through June 30, 2027. The contractual","page_number":40,"box":{"x":116,"y":668,"width":696,"height":13}},{"id":"ef522991-d658-447a-9672-c24a0cea4743","block_type":"box","text":"agreements may be terminated upon 90 days’ notice by a majority of the Independent Directors or by a vote","page_number":40,"box":{"x":116,"y":683,"width":750,"height":13}},{"id":"1a3af72a-7905-4053-9026-bc83a09208bf","block_type":"box","text":"of a majority of the outstanding voting securities of the Portfolio.","page_number":40,"box":{"x":116,"y":699,"width":451,"height":13}},{"id":"8d8ff53c-8256-4f2f-9add-e27dffb05672","block_type":"box","text":"I-23","page_number":40,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"6746d154-0fa8-4b1d-a098-8a2f992f6c2d","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":40,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"eafac60d-f28b-460b-80da-aa6b6791bba3","block_type":"box","text":"The following tables show the management fees paid to the Manager (which includes amounts paid by the","page_number":41,"box":{"x":116,"y":79,"width":739,"height":13}},{"id":"c2eebaca-c8b7-44de-9cb5-89564ed8f664","block_type":"box","text":"Manager to the Sub-Advisers), and the amounts waived and/or reimbursed by the Manager, with respect to","page_number":41,"box":{"x":116,"y":94,"width":745,"height":13}},{"id":"7e03486d-580a-4125-a546-5bd6836102fd","block_type":"box","text":"each Portfolio for the last three fiscal years:","page_number":41,"box":{"x":116,"y":110,"width":299,"height":13}},{"id":"41cb96b8-36c1-4352-bdf1-4100713dabc8","block_type":"box","text":"Fees Paid to the Manager","page_number":41,"box":{"x":446,"y":148,"width":147,"height":10}},{"id":"de287462-daf4-42f1-9c08-52b1ebdbc50a","block_type":"box","text":"For the Year Ended December 31,","page_number":41,"box":{"x":421,"y":158,"width":197,"height":10}},{"id":"bccc9250-0c40-4697-a139-aef68b97cf3c","block_type":"box","text":"Fees Waived by the Manager","page_number":41,"box":{"x":676,"y":148,"width":168,"height":10}},{"id":"fa43fcbd-e7dc-49e5-a05e-33f96680c6ed","block_type":"box","text":"1","page_number":41,"box":{"x":844,"y":149,"width":4,"height":4}},{"id":"2483c76b-1def-4a5d-923a-933068656ec5","block_type":"box","text":"For the Year Ended December 31,","page_number":41,"box":{"x":663,"y":158,"width":198,"height":10}},{"id":"bddd5468-1f0c-4c47-8f09-cf89fa5091d3","block_type":"box","text":"2025","page_number":41,"box":{"x":424,"y":173,"width":29,"height":8}},{"id":"cd78299a-7127-4e9f-81aa-03ac1f8cffc3","block_type":"box","text":"2024","page_number":41,"box":{"x":505,"y":173,"width":29,"height":8}},{"id":"7b76dfcf-e22c-4b45-9a07-bc9a611c800c","block_type":"box","text":"2023","page_number":41,"box":{"x":586,"y":173,"width":28,"height":8}},{"id":"b4b54e6f-6ee0-498d-8d5c-d6186e4dabec","block_type":"box","text":"2025","page_number":41,"box":{"x":667,"y":173,"width":28,"height":8}},{"id":"1636fe34-4e80-4958-b8fa-3b60933189ce","block_type":"box","text":"2024","page_number":41,"box":{"x":747,"y":173,"width":29,"height":8}},{"id":"7e0608ef-d145-44be-bf0e-33a1344a78fb","block_type":"box","text":"2023","page_number":41,"box":{"x":828,"y":173,"width":29,"height":8}},{"id":"aacbc79d-7342-41e3-92a4-557cc321b875","block_type":"box","text":"Advantage Large Cap Core Portfolio $799,088 $772,300 $671,183 $1,470 $1,392 $10,246","page_number":41,"box":{"x":116,"y":192,"width":751,"height":10}},{"id":"c1589d08-976f-4091-b542-eba30d107ba7","block_type":"box","text":"Balanced Portfolio $1,721,957 $1,710,812 $1,646,572 $21,192 $36,161 $38,062","page_number":41,"box":{"x":116,"y":207,"width":751,"height":10}},{"id":"d2a820a1-e7ed-425a-b113-7f243500133e","block_type":"box","text":"Capital Appreciation Portfolio $943,901 $896,849 $714,773 $551 $246 $200","page_number":41,"box":{"x":116,"y":223,"width":741,"height":10}},{"id":"9e56e69e-9849-4ab2-ad4b-6281511b063d","block_type":"box","text":"Global Allocation Portfolio $565,983 $553,379 $549,734 $326,013 $421,085 $407,888","page_number":41,"box":{"x":116,"y":238,"width":754,"height":10}},{"id":"226a4927-a64d-4962-9889-15f8cf3aa8a2","block_type":"box","text":"Government Money Market Portfolio $404,344 $424,967 $409,438 $25,204 $9,676 $26,259","page_number":41,"box":{"x":116,"y":254,"width":751,"height":10}},{"id":"e6b353a2-4296-424f-85e5-322d14e55ee5","block_type":"box","text":"Fees Reimbursed by the Manager","page_number":41,"box":{"x":666,"y":280,"width":193,"height":10}},{"id":"6bb70846-a90a-4e5e-b9ea-5913ffb92dbc","block_type":"box","text":"For the Year Ended December 31,","page_number":41,"box":{"x":663,"y":290,"width":198,"height":10}},{"id":"f65e9c82-a2bb-4545-bc00-fc37a9b6a2c2","block_type":"box","text":"2025","page_number":41,"box":{"x":667,"y":305,"width":28,"height":7}},{"id":"ab106e3a-55c5-4951-ab2d-db2c434a84d5","block_type":"box","text":"2024","page_number":41,"box":{"x":747,"y":305,"width":29,"height":7}},{"id":"909e6fe1-1263-4696-a953-5939c0ff035f","block_type":"box","text":"2023","page_number":41,"box":{"x":828,"y":305,"width":29,"height":7}},{"id":"beabe94b-6f0c-4a31-b014-54360bd98f75","block_type":"box","text":"Advantage Large Cap Core Portfolio $200,166 $213,094 $219,003","page_number":41,"box":{"x":116,"y":323,"width":754,"height":10}},{"id":"4ea172ed-f47c-4dc9-b039-eaa472db8e2c","block_type":"box","text":"Balanced Portfolio $472,155 $465,507 $483,293","page_number":41,"box":{"x":116,"y":338,"width":754,"height":10}},{"id":"b83da7a6-7139-4f70-bc60-f9d35afaa856","block_type":"box","text":"Capital Appreciation Portfolio $248,145 $240,303 $172,069","page_number":41,"box":{"x":116,"y":353,"width":754,"height":10}},{"id":"89cbbe05-531c-4a9e-8c1c-274c6b321462","block_type":"box","text":"Global Allocation Portfolio $221,683 $201,959 $222,968","page_number":41,"box":{"x":116,"y":368,"width":754,"height":10}},{"id":"b791dd31-9390-4b44-b73e-99aef2ccdcfd","block_type":"box","text":"Government Money Market Portfolio $143,053 $164,694 $165,057","page_number":41,"box":{"x":116,"y":383,"width":755,"height":10}},{"id":"2c9ae988-251f-480f-b204-8311c5d40f5b","block_type":"box","text":"1","page_number":41,"box":{"x":128,"y":409,"width":4,"height":5}},{"id":"4585e1d2-c3fd-4656-aec4-2448c77777cc","block_type":"box","text":"The Manager has contractually agreed to waive and/or reimburse fees and/or expenses in order to limit Total Annual Fund","page_number":41,"box":{"x":146,"y":409,"width":712,"height":10}},{"id":"28d61bf3-b718-4c64-9de3-cabaabf6b5bc","block_type":"box","text":"Operating Expenses After Fee Waivers and/or Expense Reimbursements for each Portfolio (excluding any Dividend Expense,","page_number":41,"box":{"x":147,"y":419,"width":722,"height":10}},{"id":"3040c330-c1a3-48c2-8732-1b06cf9510e7","block_type":"box","text":"Interest Expense, Acquired Fund Fees and Expenses and certain other Portfolio expenses (as defined in each 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Expenses that will","page_number":41,"box":{"x":116,"y":784,"width":372,"height":13}},{"id":"27f12b78-6365-44f6-8178-5236f41437fd","block_type":"box","text":"be borne directly by the Portfolios include redemption","page_number":41,"box":{"x":493,"y":784,"width":365,"height":13}},{"id":"7966af79-bd77-45e9-a412-9a0c1035e30f","block_type":"box","text":"expenses, expenses of portfolio transactions, shareholder servicing costs, expenses of registering the shares under","page_number":41,"box":{"x":116,"y":800,"width":761,"height":13}},{"id":"30404d25-7b4b-4b7e-9b74-2c0adb80081b","block_type":"box","text":"Federal, state or foreign laws, pricing costs (including the daily calculation of net asset value), interest, certain","page_number":41,"box":{"x":116,"y":815,"width":738,"height":13}},{"id":"7b8f6ae1-4fac-4e10-86b4-33a5e7f87f92","block_type":"box","text":"taxes, charges of the custodian and transfer agent and other expenses attributable to a particular Portfolio.","page_number":41,"box":{"x":116,"y":831,"width":720,"height":13}},{"id":"ac71fcdc-2a9e-4d08-9334-5139455fbcb1","block_type":"box","text":"Expenses which will be allocated on the basis of size of the respective Portfolios include directors’ fees, legal","page_number":41,"box":{"x":116,"y":846,"width":727,"height":13}},{"id":"381529d1-6c20-4c30-8e51-1fc1fa9454f9","block_type":"box","text":"expenses, state franchise taxes, auditing services, costs of printing proxies, stock certificates, shareholder reports","page_number":41,"box":{"x":116,"y":862,"width":755,"height":13}},{"id":"a205c346-aa1b-4cdb-bc63-010e12fd9e1d","block_type":"box","text":"I-24","page_number":41,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"21ddbcb0-580d-4f11-87e1-10776bf08d47","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":41,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ecd2aae0-6fb8-464f-8aeb-4a386c0d799c","block_type":"box","text":"and prospectuses and statements of additional information (to the extent not paid for by BlackRock Investments,","page_number":42,"box":{"x":116,"y":79,"width":765,"height":13}},{"id":"25f94968-5c67-4e9a-9b4e-83102f57b2ce","block_type":"box","text":"LLC (“BRIL” or the “Distributor”), SEC fees, accounting costs and other expenses properly payable by the Fund","page_number":42,"box":{"x":116,"y":94,"width":767,"height":13}},{"id":"311e3c91-e782-4860-a827-c833175e2109","block_type":"box","text":"and allocable on the basis of size of the respective Portfolios. Any litigation costs may be directly applicable to","page_number":42,"box":{"x":116,"y":110,"width":743,"height":13}},{"id":"cc0a875e-6914-475e-a557-312ec5fa72be","block_type":"box","text":"the Portfolios or allocated on the basis of the size of the respective Portfolios. 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These","page_number":44,"box":{"x":492,"y":79,"width":384,"height":13}},{"id":"c77c4f14-8fe4-4d62-8684-da0dbd7459a9","block_type":"box","text":"factors are considered collectively by BlackRock management and the relevant Chief Investment Officers.","page_number":44,"box":{"x":116,"y":94,"width":695,"height":13}},{"id":"f7fe733a-7a38-4a3d-b25e-66b623eca16e","block_type":"box","text":"Discretionary Incentive Compensation","page_number":44,"box":{"x":116,"y":122,"width":278,"height":12}},{"id":"a0eb46cd-b014-4029-b1c4-0defb958c8b3","block_type":"box","text":"Messrs. Cooke, Mathieson and Savi","page_number":44,"box":{"x":116,"y":146,"width":259,"height":11}},{"id":"830dc63e-0ca3-494b-8df8-493fd6bcdab5","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc.,","page_number":44,"box":{"x":116,"y":170,"width":752,"height":13}},{"id":"2770dd7e-c6b9-4b60-88db-55ef841ea689","block_type":"box","text":"the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk","page_number":44,"box":{"x":116,"y":185,"width":766,"height":13}},{"id":"282a58fc-dbec-4e7c-858b-0fbf4552e401","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to","page_number":44,"box":{"x":116,"y":201,"width":729,"height":13}},{"id":"2d71c328-a7e0-447b-bf68-87acae8d2678","block_type":"box","text":"predetermined benchmarks, and the individual’s performance and contribution to the overall performance of","page_number":44,"box":{"x":116,"y":217,"width":739,"height":12}},{"id":"cc420a7e-31df-4392-b0c5-88b551168797","block_type":"box","text":"these portfolios and BlackRock. Among other things, Bl","page_number":44,"box":{"x":116,"y":232,"width":379,"height":13}},{"id":"4d670248-392e-49a3-98f4-8016be3a293e","block_type":"box","text":"ackRock’s Chief Investment Officers make a subjective","page_number":44,"box":{"x":495,"y":232,"width":372,"height":13}},{"id":"212eacca-78f6-47f3-bfdd-0a72f688897d","block_type":"box","text":"determination with respect to each portfolio manager’s compensation based on the performance of the Funds","page_number":44,"box":{"x":116,"y":248,"width":740,"height":12}},{"id":"3fa42766-03af-4e7f-bed2-8da67658a88a","block_type":"box","text":"and other accounts managed by each portfolio manager relative to the various benchmarks. Performance is","page_number":44,"box":{"x":116,"y":263,"width":726,"height":13}},{"id":"e964a01a-d9eb-4316-9a05-c33a65a4281d","block_type":"box","text":"generally assessed over trailing 1-, 3-, and 5-year periods relative to applicable benchmarks. The performance of","page_number":44,"box":{"x":116,"y":279,"width":759,"height":12}},{"id":"8c61cf05-1443-44cd-bea7-6f8068a4e755","block_type":"box","text":"Messrs. Cooke, Mathieson and Savi","page_number":44,"box":{"x":116,"y":294,"width":243,"height":12}},{"id":"dd80e433-f249-4fc7-ad1e-f919edf48f36","block_type":"box","text":"is not measured against a specific benchmark.","page_number":44,"box":{"x":363,"y":294,"width":309,"height":13}},{"id":"5d3e78b4-e3be-4b0f-ba42-fd60b92835fd","block_type":"box","text":"Discretionary Incentive Compensation","page_number":44,"box":{"x":116,"y":321,"width":278,"height":13}},{"id":"0bfb2a97-d192-467f-be76-0ba270b93ea6","block_type":"box","text":"Messrs. Felder, Green and Pensky","page_number":44,"box":{"x":116,"y":345,"width":246,"height":13}},{"id":"e95c48fd-09b0-4f24-9f6d-7a2d4b257543","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the commercial performance of","page_number":44,"box":{"x":116,"y":370,"width":737,"height":13}},{"id":"f4f41e8d-9dcd-44fe-a8fb-ea2e3d50b146","block_type":"box","text":"BlackRock, Inc., the commercial performance of the portfo","page_number":44,"box":{"x":116,"y":385,"width":410,"height":13}},{"id":"61223296-bf1c-47f4-85ea-20b8d1db20cb","block_type":"box","text":"lio manager’s group, client investment performance","page_number":44,"box":{"x":527,"y":385,"width":356,"height":13}},{"id":"f42be16e-3e6f-4e07-8df5-b05610be81ff","block_type":"box","text":"relative to predetermined benchmarks for which the portfolio manager’s group is responsible, and the","page_number":44,"box":{"x":116,"y":401,"width":705,"height":13}},{"id":"523023bb-a90b-4e52-bce0-43151dcfdcca","block_type":"box","text":"individual’s contribution to the overall performance of these portfolios and BlackRock. Commercial and","page_number":44,"box":{"x":116,"y":416,"width":725,"height":13}},{"id":"a8255992-1f94-4c93-8122-501683d7f54e","block_type":"box","text":"investment performance is generally assessed over trailing 1-,3-, and 5-year periods. The relative benchmarks","page_number":44,"box":{"x":116,"y":432,"width":754,"height":13}},{"id":"9f200619-9bdc-4d28-9061-a6ef9dfa1d86","block_type":"box","text":"for these portfolio managers are from table below here.","page_number":44,"box":{"x":116,"y":447,"width":383,"height":13}},{"id":"6f611161-1aaa-4811-9702-d61d787ef6c2","block_type":"box","text":"Portfolio Manager","page_number":44,"box":{"x":116,"y":473,"width":107,"height":10}},{"id":"c0365005-5647-4626-9d83-475d617f34e6","block_type":"box","text":"Funds Managed","page_number":44,"box":{"x":301,"y":473,"width":93,"height":10}},{"id":"244d84fc-3c08-4b2a-b490-9867eee2f5e8","block_type":"box","text":"Applicable Benchmarks","page_number":44,"box":{"x":469,"y":473,"width":137,"height":10}},{"id":"fd940349-bf3d-454a-8a21-b89cfdf93bd6","block_type":"box","text":"Daniel Felder, CFA\r\nPhiliG","page_number":44,"box":{"x":116,"y":490,"width":111,"height":10}},{"id":"bf003f95-7644-40a7-89c0-3e9eb5b70b0e","block_type":"box","text":"Philip Green","page_number":44,"box":{"x":116,"y":499,"width":72,"height":11}},{"id":"922ceae0-e5bb-421f-919d-e6e8c7d14d8b","block_type":"box","text":".............","page_number":44,"box":{"x":196,"y":506,"width":87,"height":2}},{"id":"d22c26d0-7e65-489b-8dfb-dc7ce34d743a","block_type":"box","text":"Balanced Portfolio","page_number":44,"box":{"x":301,"y":490,"width":107,"height":8}},{"id":"c8ed9a7e-059c-4954-b0ac-659cdc41d15b","block_type":"box","text":"...... 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Rieder and Koesterich","page_number":44,"box":{"x":116,"y":590,"width":219,"height":10}},{"id":"67915975-b068-4a6c-9939-960edbd9e7e2","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc.,","page_number":44,"box":{"x":116,"y":614,"width":752,"height":13}},{"id":"25ab3c27-291b-48c3-8919-9edf32255fda","block_type":"box","text":"the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk","page_number":44,"box":{"x":116,"y":630,"width":766,"height":12}},{"id":"d19ccd59-c8d8-4848-b42c-8275622e33e4","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to","page_number":44,"box":{"x":116,"y":645,"width":729,"height":13}},{"id":"38b642cd-6290-406e-8453-7b4550b82022","block_type":"box","text":"predetermined benchmarks, and the individual’s performance and contribution to the overall performance of","page_number":44,"box":{"x":116,"y":661,"width":739,"height":12}},{"id":"8b60f8c7-8bb8-4b33-9468-a582c93ddcc3","block_type":"box","text":"these portfolios and BlackRock. 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Among other things, BlackRock’s Chief Investment Officers make a subjective","page_number":44,"box":{"x":116,"y":707,"width":698,"height":13}},{"id":"08811c7d-afd3-4202-a2cb-371cd2566d76","block_type":"box","text":"determination with respect to each portfolio manager’s c","page_number":44,"box":{"x":116,"y":723,"width":384,"height":12}},{"id":"525a105f-8d2e-4254-8d56-8089b8a9018b","block_type":"box","text":"ompensation based on the performance of the Portfolio","page_number":44,"box":{"x":500,"y":723,"width":375,"height":12}},{"id":"b5e1bd68-3483-4457-88c5-96247cc963af","block_type":"box","text":"and other accounts managed by each portfolio manager relative to the various benchmarks. 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Only portfolio managers who manage specified products and whose total compensation is","page_number":45,"box":{"x":116,"y":362,"width":766,"height":13}},{"id":"ff35db86-e31d-4dfd-99bf-2e53d40efc29","block_type":"box","text":"above a specified threshold are eligible to participate in the deferred cash award program.","page_number":45,"box":{"x":116,"y":377,"width":620,"height":13}},{"id":"59c47204-bbf8-4f26-a147-13f86824a99b","block_type":"box","text":"Other Compensation Benefits.","page_number":45,"box":{"x":116,"y":399,"width":211,"height":12}},{"id":"e85ab246-95af-4845-b9e9-d3f4fd5d6d6d","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":45,"box":{"x":332,"y":399,"width":538,"height":12}},{"id":"231c798d-4aee-4452-a73a-1be39fd34fe9","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":45,"box":{"x":116,"y":414,"width":569,"height":12}},{"id":"6639c011-979e-4ed4-b994-e97786659c0f","block_type":"box","text":"Incentive Savings Plans —","page_number":45,"box":{"x":116,"y":435,"width":179,"height":13}},{"id":"e8cecc55-8ce7-43df-8618-60779b0a6042","block_type":"box","text":"BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":45,"box":{"x":299,"y":435,"width":566,"height":13}},{"id":"3ad0ce53-d76b-4c26-afce-9181ab3d0d7f","block_type":"box","text":"employees are eligible to participate, including a 401(k)","page_number":45,"box":{"x":116,"y":450,"width":374,"height":13}},{"id":"9dbc59c8-ca4e-42f0-be01-a4f3860336bb","block_type":"box","text":"plan, the BlackRock Retirement Savings Plan (“RSP”),","page_number":45,"box":{"x":495,"y":450,"width":370,"height":13}},{"id":"d50fb076-34ca-438e-b2ff-ef65cdb4b637","block_type":"box","text":"and the BlackRock Employee Stock Purchase Plan (“ESPP”). 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BNY Mellon will receive annual","page_number":47,"box":{"x":116,"y":349,"width":712,"height":13}},{"id":"87fa5dee-23d8-4c27-a9a3-e919d8919d82","block_type":"box","text":"compensation from each Portfolio and will be entitle","page_number":47,"box":{"x":116,"y":364,"width":365,"height":13}},{"id":"8356997e-8643-4d9e-bf6a-4d9a2e96aff1","block_type":"box","text":"d to reimbursement of out-of-pocket expenses.","page_number":47,"box":{"x":482,"y":364,"width":322,"height":13}},{"id":"6f987400-ad02-4754-b78a-65435228f5a2","block_type":"box","text":"Organization and Management of Wholly-Owned Subsidiary.","page_number":47,"box":{"x":116,"y":388,"width":431,"height":12}},{"id":"233c74a9-6e59-4408-bfc8-399cec8031bb","block_type":"box","text":"Global Allocation Portfolio intends to gain","page_number":47,"box":{"x":553,"y":388,"width":296,"height":12}},{"id":"e8d99edd-4248-4986-99a8-002037158cd2","block_type":"box","text":"exposure to commodity markets by investing up to 25% of its total assets in the Global Allocation Subsidiary.","page_number":47,"box":{"x":116,"y":403,"width":764,"height":13}},{"id":"7ceaf276-892a-4485-b2a7-df3ad114d885","block_type":"box","text":"The Global Allocation Subsidiary invests primarily in commodity-related instruments.","page_number":47,"box":{"x":116,"y":419,"width":595,"height":12}},{"id":"e671fc58-a057-4394-a262-89b6f831b158","block_type":"box","text":"The Subsidiary is a company organized under the laws of the Cayman Islands, whose registered office is","page_number":47,"box":{"x":116,"y":442,"width":720,"height":13}},{"id":"4acdd166-97c5-4ac9-a2ef-570c802149dd","block_type":"box","text":"located at the offices of Maples Corporate Services Limited, P.O. Box 309, Ugland House, Grand Cayman","page_number":47,"box":{"x":116,"y":457,"width":739,"height":13}},{"id":"71b19eb4-298a-4a15-b8f3-9799b867b3a4","block_type":"box","text":"KYI-1104, Cayman Islands. The Subsidiary’s affairs are overseen by a board of directors, which is comprised","page_number":47,"box":{"x":116,"y":473,"width":757,"height":13}},{"id":"f58f0b22-632a-47a3-b515-518fd23468f5","block_type":"box","text":"of John M. Perlowski and Trent Walker, each a member of the Fund’s Board of Directors.","page_number":47,"box":{"x":116,"y":488,"width":626,"height":13}},{"id":"5173186d-2630-4cfc-a04f-095dc43dec88","block_type":"box","text":"The Manager provides investment management and administrative services to the Subsidiary. The Manager","page_number":47,"box":{"x":116,"y":512,"width":746,"height":12}},{"id":"179bb68a-8173-443f-88c2-380f2b46a698","block_type":"box","text":"does not receive separate compensation from the Subsidiary for providing it with investment advisory or","page_number":47,"box":{"x":116,"y":527,"width":723,"height":13}},{"id":"26c2b890-04eb-44e0-b864-6f159666021c","block_type":"box","text":"administrative services. However, Global Allocatio","page_number":47,"box":{"x":116,"y":543,"width":353,"height":12}},{"id":"8b6516e0-b207-479b-a241-746477912d6d","block_type":"box","text":"n Portfolio pays the Manager based on the Portfolio’s","page_number":47,"box":{"x":469,"y":543,"width":372,"height":12}},{"id":"33bfa2fe-9456-4a78-bd76-42d6ae0837ef","block_type":"box","text":"assets, including the assets invested in the Subsidiary. The Subsidiary entered into contracts for the provision","page_number":47,"box":{"x":116,"y":558,"width":751,"height":13}},{"id":"e4449595-d861-484d-9d94-3993ea93b9df","block_type":"box","text":"of advisory, custody, and audit services with the same service providers that provide those services to Global","page_number":47,"box":{"x":116,"y":574,"width":752,"height":12}},{"id":"0db03fe6-fe23-4672-a5e7-c0d84f3c313b","block_type":"box","text":"Allocation Portfolio.","page_number":47,"box":{"x":116,"y":589,"width":142,"height":10}},{"id":"df1377d9-1d5b-48fa-8b8c-d3c7053cdc8b","block_type":"box","text":"The Subsidiary is managed pursuant to compliance policies and procedures that are the same, in all material","page_number":47,"box":{"x":116,"y":612,"width":749,"height":13}},{"id":"da57c533-99e0-4cb8-b58a-2d1221e0478f","block_type":"box","text":"respects, as the policies and procedures adopted by the Fund. As a result, the Manager, in managing the","page_number":47,"box":{"x":116,"y":628,"width":719,"height":13}},{"id":"b32afed2-ec15-44da-aff5-fdc58620847d","block_type":"box","text":"Subsidiary’s portfolio, is subject to the same investment policies and restrictions that apply to the management","page_number":47,"box":{"x":116,"y":643,"width":765,"height":13}},{"id":"ad412518-8a43-4b40-9ce8-3f5863c458de","block_type":"box","text":"of Global Allocation Portfolio, and, in particular, to the requirements relating to portfolio leverage, liquidity,","page_number":47,"box":{"x":116,"y":659,"width":755,"height":13}},{"id":"1502be25-fada-428f-9deb-1b75d307f345","block_type":"box","text":"brokerage, and the timing and method of the valuation of the Subsidiary’s portfolio investments and shares of","page_number":47,"box":{"x":116,"y":674,"width":763,"height":13}},{"id":"f2fe0250-2c8d-4530-8860-bdf73564d870","block_type":"box","text":"the Subsidiary. These policies and restrictions are described elsewhere in detail in this SAI. Global Allocation","page_number":47,"box":{"x":116,"y":690,"width":752,"height":13}},{"id":"382ebbba-159e-49f4-ad66-dfd982bf1650","block_type":"box","text":"Portfolio and the Subsidiary test for compliance with certain investment restrictions on a consolidated basis.","page_number":47,"box":{"x":116,"y":705,"width":748,"height":13}},{"id":"3feff08e-788c-487e-8c21-6c772c390d24","block_type":"box","text":"Credit Agreement.","page_number":47,"box":{"x":116,"y":729,"width":127,"height":12}},{"id":"61a13d05-865d-44e2-af79-603b84333740","block_type":"box","text":"The Fund, on behalf of the Portfolios (other than Government Money Market Portfolio),","page_number":47,"box":{"x":248,"y":729,"width":618,"height":12}},{"id":"0b788cb2-5c51-4012-a09f-fac998efc164","block_type":"box","text":"along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to","page_number":47,"box":{"x":116,"y":744,"width":765,"height":13}},{"id":"59e6e2ae-2a44-4d74-b297-72adeb4732f5","block_type":"box","text":"a 364-day, $2.4 billion credit agreement with a group of lenders, which facility terminates on April 8, 2027,","page_number":47,"box":{"x":116,"y":759,"width":749,"height":13}},{"id":"1615b901-8c2b-4c9a-a328-bcd82d140ad7","block_type":"box","text":"unless otherwise extended or renewed (the “Credit Ag","page_number":47,"box":{"x":116,"y":775,"width":376,"height":13}},{"id":"dae3f312-eb87-4b98-a628-f0248dc8ae26","block_type":"box","text":"reement”). Excluding commitments designated for","page_number":47,"box":{"x":492,"y":775,"width":350,"height":13}},{"id":"a0c632a1-5422-4975-bd6f-1913e71342c7","block_type":"box","text":"certain Participating Funds, the Participating Funds, including the Portfolios, can borrow up to an aggregate","page_number":47,"box":{"x":116,"y":791,"width":750,"height":12}},{"id":"8cc55b22-7131-4df0-82f2-b4d2f29428d3","block_type":"box","text":"commitment amount of $1.75 billion at any time outsta","page_number":47,"box":{"x":116,"y":806,"width":388,"height":13}},{"id":"7deaf7f3-008e-40a1-8ab3-cd5d3dfc1358","block_type":"box","text":"nding, subject to asset coverage and other limitations","page_number":47,"box":{"x":505,"y":806,"width":367,"height":13}},{"id":"5eefdd6f-7d85-4087-bdda-3645ffe4143a","block_type":"box","text":"as specified in the Credit Agreement. The Portfolios may borrow under the Credit Agreement to meet","page_number":47,"box":{"x":116,"y":822,"width":704,"height":12}},{"id":"4eb5d208-1d54-4a56-a2eb-0d09f19b7b5b","block_type":"box","text":"shareholder redemptions and for other lawful purposes. However, the Portfolios may not borrow under the","page_number":47,"box":{"x":116,"y":837,"width":747,"height":13}},{"id":"a01ca64f-82be-4594-bc8b-df58430ee1c7","block_type":"box","text":"Credit Agreement for leverage. The Portfolios may borrow up to the maximum amount allowable under the","page_number":47,"box":{"x":117,"y":853,"width":750,"height":12}},{"id":"fbd8f58a-a60b-4351-8e96-6a86a1801559","block_type":"box","text":"Portfolios’ current Prospectuses and SAI, subject to various other legal, regulatory or contractual limits.","page_number":47,"box":{"x":116,"y":868,"width":716,"height":13}},{"id":"ba4402a7-4652-4e9c-95ca-5be28ccf51fd","block_type":"box","text":"I-30","page_number":47,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"0e9fec50-564e-402d-947d-57925bf731e2","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":47,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8aa1d447-dadd-47b7-95ae-15fb617ebacd","block_type":"box","text":"Borrowing results in interest expense and other fees and expenses for the Portfolios which may impact the","page_number":48,"box":{"x":116,"y":79,"width":734,"height":13}},{"id":"f26a8a2b-460d-4450-938f-46c5c3930616","block_type":"box","text":"Portfolios’ net expenses. The costs of borrowing may reduce the Portfolios’ returns. Each Portfolio is charged","page_number":48,"box":{"x":116,"y":94,"width":757,"height":13}},{"id":"d580b1e1-9ada-46e0-8e10-607e7c9bda4f","block_type":"box","text":"its pro rata share of upfront fees and commitment fees on the aggregate commitment amount based on its net","page_number":48,"box":{"x":116,"y":110,"width":759,"height":13}},{"id":"702acac7-d66b-4c49-a8fa-4bf881dd742a","block_type":"box","text":"assets. If the Portfolios borrow pursuant to the Cred","page_number":48,"box":{"x":116,"y":125,"width":362,"height":13}},{"id":"c8cb2a13-4298-45f4-b0a2-677e1b2de157","block_type":"box","text":"it Agreement, the Portfolios will be charged interest at a","page_number":48,"box":{"x":479,"y":125,"width":386,"height":13}},{"id":"2f45c479-3291-4669-8b90-0835ce1e0ee7","block_type":"box","text":"variable rate.","page_number":48,"box":{"x":116,"y":141,"width":90,"height":10}},{"id":"b070af2a-fd5f-4e11-b756-3cd4091b6d30","block_type":"box","text":"V. Information on Distribution and Other Service Arrangements","page_number":48,"box":{"x":116,"y":169,"width":513,"height":13}},{"id":"6919ea26-d362-44d3-ad76-24061a2083aa","block_type":"box","text":"Distribution and Other Arrangements.","page_number":48,"box":{"x":116,"y":195,"width":268,"height":13}},{"id":"23c9e536-17cc-4158-bd60-42d2f731ba41","block_type":"box","text":"BRIL acts as the Fund’s sole distributor. The Fund has entered into a","page_number":48,"box":{"x":391,"y":195,"width":476,"height":10}},{"id":"5b28237b-6eca-49a9-b0c9-79f72fef686c","block_type":"box","text":"distribution agreement (the “Distribution Agreem","page_number":48,"box":{"x":116,"y":211,"width":345,"height":12}},{"id":"b4cf1003-91e8-4b46-a7a6-a4c89b239738","block_type":"box","text":"ent”) with BRIL, an affiliate of the Manager, with respect to","page_number":48,"box":{"x":462,"y":211,"width":418,"height":12}},{"id":"938c7696-d796-4ef0-99ba-93dac379bd6a","block_type":"box","text":"the sale of the Portfolios’ shares to the Distributor fo","page_number":48,"box":{"x":116,"y":226,"width":365,"height":10}},{"id":"ba9bd3a4-6a2e-4ada-972a-2679603c4c4c","block_type":"box","text":"r resale to Insurance Companies’ accounts. Such shares","page_number":48,"box":{"x":482,"y":226,"width":381,"height":13}},{"id":"5d20d24a-71f4-4a3d-b863-a1cb91bc0b2b","block_type":"box","text":"will be sold at their respective net asset values and therefore will involve no sales charge.","page_number":48,"box":{"x":116,"y":242,"width":611,"height":12}},{"id":"673f4bb5-c7bd-4351-a0a0-5d6620bd66df","block_type":"box","text":"The Distribution Agreement is subject to the same renew","page_number":48,"box":{"x":116,"y":265,"width":394,"height":13}},{"id":"7f49e96e-bf49-41f1-b8f8-6ed7397a56cd","block_type":"box","text":"al requirements and termination provisions as the","page_number":48,"box":{"x":511,"y":265,"width":343,"height":13}},{"id":"0d25486f-3d85-4692-bf55-7c5fc5bb9ebe","block_type":"box","text":"Investment Management Agreement described above.","page_number":48,"box":{"x":116,"y":280,"width":371,"height":13}},{"id":"a39a1925-e809-45d6-9b03-05a31f1294eb","block_type":"box","text":"The Manager, the Distributor and their affiliates may make payments relating to distribution and sales","page_number":48,"box":{"x":116,"y":304,"width":712,"height":12}},{"id":"db13a418-950c-4a3f-b0d8-5709fb9ed6d7","block_type":"box","text":"support activities out of their past profits or other sources available to them (and not as an additional charge","page_number":48,"box":{"x":116,"y":319,"width":753,"height":13}},{"id":"2f5daa3a-278d-4b53-94ab-cd9f46cccf71","block_type":"box","text":"to a Portfolio). From time to time, the Manager, the Dis","page_number":48,"box":{"x":116,"y":335,"width":388,"height":12}},{"id":"4a916037-5ad1-4122-9f74-83cbd7e01e0d","block_type":"box","text":"tributor or their affiliates may compensate affiliated","page_number":48,"box":{"x":505,"y":335,"width":359,"height":12}},{"id":"a667c6ac-abc7-4470-9c49-7a4f259dd165","block_type":"box","text":"and unaffiliated insurance companies for the sale and distribution of shares of a Portfolio or for services to a","page_number":48,"box":{"x":116,"y":350,"width":751,"height":13}},{"id":"10bb1fd1-cab4-458e-8126-0dd9a124bbbf","block_type":"box","text":"Portfolio and its contract holders. These payments may be made to insurance companies to pay for marketing","page_number":48,"box":{"x":116,"y":366,"width":762,"height":12}},{"id":"a50c743d-6bf7-46ce-ae18-b552dd24a684","block_type":"box","text":"support activities, training sales personnel regarding the","page_number":48,"box":{"x":116,"y":381,"width":386,"height":13}},{"id":"63ac304a-1435-4d1a-8fac-2381aba141e6","block_type":"box","text":"Portfolios, compensating financial intermediaries and","page_number":48,"box":{"x":507,"y":381,"width":369,"height":13}},{"id":"ad451a18-82ae-4733-baf6-b0c260510eef","block_type":"box","text":"broker-dealers to pay or reimburse them for their servi","page_number":48,"box":{"x":116,"y":397,"width":378,"height":12}},{"id":"bf4b05c5-9f34-4290-aa50-81e047c519a6","block_type":"box","text":"ces or expenses in connection with the distribution of","page_number":48,"box":{"x":495,"y":397,"width":370,"height":12}},{"id":"1596d934-2cdf-4c80-b1f0-c948bd5b682e","block_type":"box","text":"variable annuity and variable life insurance contracts i","page_number":48,"box":{"x":116,"y":412,"width":375,"height":13}},{"id":"3b564a80-ef31-4f95-ab39-195efca99604","block_type":"box","text":"nvesting directly in Portfolio shares, and compensating","page_number":48,"box":{"x":492,"y":412,"width":379,"height":13}},{"id":"c9da0da7-0778-4df1-981c-874bc7fde612","block_type":"box","text":"sales personnel in connection with the allocation of cash values and premium of variable annuity and variable","page_number":48,"box":{"x":116,"y":428,"width":761,"height":12}},{"id":"f0585fb6-4a2a-4a74-b207-9342715bf62f","block_type":"box","text":"life insurance contracts to investments in Portfolio shares. The payments made by the Manager, the","page_number":48,"box":{"x":116,"y":443,"width":689,"height":13}},{"id":"8d28ee4a-f904-4bcc-8a94-a7de98291799","block_type":"box","text":"Distributor and their affiliates are based on a percentage of the value of shares sold to insurance companies","page_number":48,"box":{"x":116,"y":459,"width":742,"height":12}},{"id":"37dfc190-860f-4776-bb72-fd174214d9e5","block_type":"box","text":"for their customers’ investment subaccounts, and may be different for different insurance companies. The","page_number":48,"box":{"x":116,"y":474,"width":730,"height":13}},{"id":"e667b32d-7d8d-4647-8934-dc3b888905db","block_type":"box","text":"payments described above are made from the Manager’s, the Distributor’s or their affiliates’ own assets","page_number":48,"box":{"x":116,"y":490,"width":717,"height":12}},{"id":"4b298f79-ebe1-494f-ac7f-07e3c04749ba","block_type":"box","text":"pursuant to agreements with insurance companies and d","page_number":48,"box":{"x":116,"y":505,"width":391,"height":13}},{"id":"c7dac2a7-0ea2-4889-88e1-9d8a4348a9c8","block_type":"box","text":"o not change the price paid by insurance companies","page_number":48,"box":{"x":508,"y":505,"width":357,"height":13}},{"id":"7f666c8e-9795-448a-be6c-0b76e2564833","block_type":"box","text":"for the purchase of a Portfolio’s shares or the amount a Portfolio will receive as proceeds from such sales.","page_number":48,"box":{"x":116,"y":521,"width":730,"height":12}},{"id":"fe3d2920-40a1-4177-928a-b4238098dd8b","block_type":"box","text":"The payments described above may be made, at the discretion of BRIL, BlackRock or their affiliates, to","page_number":48,"box":{"x":116,"y":544,"width":716,"height":13}},{"id":"399b58ed-54dc-4cba-a855-e2ca7feef4ab","block_type":"box","text":"insurance companies in connection with the sale and di","page_number":48,"box":{"x":116,"y":559,"width":382,"height":13}},{"id":"886f2037-b176-42e4-9805-6de5320af246","block_type":"box","text":"stribution of Portfolio shares. Pursuant to applicable","page_number":48,"box":{"x":499,"y":559,"width":363,"height":13}},{"id":"9560b109-9a1d-4717-abb6-1d7c1e2063e0","block_type":"box","text":"Financial Industry Regulatory Authority (“FINRA”) reg","page_number":48,"box":{"x":116,"y":575,"width":390,"height":13}},{"id":"dd2cb717-c5c0-4c42-a82f-7f1862256107","block_type":"box","text":"ulations, the details of certain of these payments,","page_number":48,"box":{"x":506,"y":575,"width":337,"height":13}},{"id":"31374911-8151-44de-8104-4898491908b1","block_type":"box","text":"including the insurance companies receiving such paym","page_number":48,"box":{"x":116,"y":590,"width":383,"height":13}},{"id":"3b00f2ea-bb02-4e86-9179-be88e9c1766b","block_type":"box","text":"ents in connection with the sale and distribution of","page_number":48,"box":{"x":500,"y":590,"width":353,"height":10}},{"id":"8a1f301d-10c1-46a2-8ba1-b2736f9104d6","block_type":"box","text":"Portfolio shares, are required to be disclosed. As of the date of this SAI, as amended or supplemented from","page_number":48,"box":{"x":116,"y":606,"width":739,"height":13}},{"id":"85aca174-6ad3-42a0-861c-9d1f867c348c","block_type":"box","text":"time to time, no insurance companies are receiving","page_number":48,"box":{"x":116,"y":622,"width":351,"height":12}},{"id":"ceb82c56-0ede-43b6-aef3-5e729bba4ba0","block_type":"box","text":"such payments. In lieu of payments pursuant to the","page_number":48,"box":{"x":472,"y":621,"width":354,"height":13}},{"id":"03807076-adce-40f9-8663-cbbd6cb15358","block_type":"box","text":"foregoing, the Manager, the Distributor or their affiliates may make payments to insurance companies of an","page_number":48,"box":{"x":116,"y":637,"width":750,"height":13}},{"id":"b4d6dd35-3381-4bc8-ac49-5887f3fbfd70","block_type":"box","text":"agreed-upon amount that will not exceed the amount that would have been payable pursuant to the above,","page_number":48,"box":{"x":116,"y":652,"width":743,"height":13}},{"id":"40ae6693-588d-4539-a814-170c18105268","block_type":"box","text":"and may also make similar payments to other insurance companies.","page_number":48,"box":{"x":116,"y":668,"width":469,"height":13}},{"id":"a014e5c6-429c-4346-b307-8657e379eaa2","block_type":"box","text":"If investment advisers, distributors or affiliates of mutual funds pay bonuses and incentives in differing","page_number":48,"box":{"x":116,"y":691,"width":710,"height":13}},{"id":"e88e8648-681c-4472-b7fd-ae8d5557b503","block_type":"box","text":"amounts, financial firms and their financial consultants may have financial incentives for recommending a","page_number":48,"box":{"x":116,"y":707,"width":735,"height":12}},{"id":"4bba9f40-fe24-484e-ba71-55cccd809a99","block_type":"box","text":"particular mutual fund over other mutual funds. In addition, depending on the arrangements in place at any","page_number":48,"box":{"x":116,"y":722,"width":749,"height":13}},{"id":"ea9dd6ed-8f95-45c0-9f0a-92a6aaa9f850","block_type":"box","text":"particular time, a financial firm and its financial c","page_number":48,"box":{"x":116,"y":738,"width":344,"height":12}},{"id":"873cf735-0726-47c3-bcc4-3b0242971975","block_type":"box","text":"onsultants may also have a financial incentive for","page_number":48,"box":{"x":460,"y":738,"width":342,"height":12}},{"id":"c52232b9-73b4-421f-aa65-46c418e32bf2","block_type":"box","text":"recommending a particular share class over other share classes.","page_number":48,"box":{"x":116,"y":753,"width":436,"height":13}},{"id":"0b8312f0-f45b-4246-8dfc-8120949b68b4","block_type":"box","text":"You should consult your financial adviser and","page_number":48,"box":{"x":557,"y":753,"width":320,"height":13}},{"id":"35f28a55-6078-4e9e-909e-1a73b9a05bf0","block_type":"box","text":"review carefully any disclosure by the financial firm as to compensation received by your financial adviser and","page_number":48,"box":{"x":116,"y":769,"width":764,"height":13}},{"id":"b799e130-7b1c-4e86-9cd6-69995450b441","block_type":"box","text":"for more information about the payments described above.","page_number":48,"box":{"x":116,"y":784,"width":409,"height":13}},{"id":"66220b58-4f0e-488c-87b7-23458a5c335f","block_type":"box","text":"Furthermore, the Manager, the Distributor and their affiliates may contribute to various non-cash and cash","page_number":48,"box":{"x":116,"y":807,"width":745,"height":13}},{"id":"08cc0732-dc77-42fa-ba68-5ce23cf09ab1","block_type":"box","text":"incentive arrangements to promote the sale of shares, and may sponsor various contests and promotions","page_number":48,"box":{"x":116,"y":823,"width":723,"height":13}},{"id":"ce29f04a-1bd2-4421-8cd2-5ec500fad967","block_type":"box","text":"subject to applicable FINRA regulations in which participants may receive prizes such as travel awards,","page_number":48,"box":{"x":116,"y":838,"width":717,"height":13}},{"id":"5a507ccd-bf47-443b-93e1-54db4bfdda00","block_type":"box","text":"merchandise and cash. Subject to applicable FINRA regulations, the Manager, the Distributor and their","page_number":48,"box":{"x":116,"y":854,"width":719,"height":13}},{"id":"d7bfbf26-18bc-4988-b1d3-bf29dd1f417c","block_type":"box","text":"affiliates may also (i) pay for the travel expenses, meals, lodging and entertainment of broker/dealers, financial","page_number":48,"box":{"x":116,"y":869,"width":764,"height":13}},{"id":"163b9bc0-e34b-4587-b464-ecfa95ec69b2","block_type":"box","text":"I-31","page_number":48,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"0c2b99db-653f-4ebf-bff8-4979e9541ff8","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":48,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"22ff9779-e59d-4845-a53a-0f747361069e","block_type":"box","text":"institutions and their salespersons in connection with educational and sales promotional programs,","page_number":49,"box":{"x":116,"y":79,"width":686,"height":13}},{"id":"9c5ac630-7aa9-4b4e-ad43-bc038d2800ba","block_type":"box","text":"(ii) sponsor speakers, educational seminars and charitable events and (iii) provide other sales and marketing","page_number":49,"box":{"x":117,"y":94,"width":745,"height":13}},{"id":"c3d8b6cf-a495-48cb-bb6e-4b6654466839","block_type":"box","text":"conferences and other resources to broker/dealers, financial institutions and their salespersons.","page_number":49,"box":{"x":116,"y":110,"width":653,"height":13}},{"id":"0b9191aa-d6a3-4762-b4c1-cc69e1c1fb72","block_type":"box","text":"Insurance companies may charge their clients additional fees for account-related services. Insurance companies","page_number":49,"box":{"x":116,"y":131,"width":766,"height":13}},{"id":"4a912813-91e2-41e7-866d-13c79ccd490e","block_type":"box","text":"may charge their customers a service fee in connectio","page_number":49,"box":{"x":116,"y":147,"width":367,"height":12}},{"id":"328db6e1-ccbc-48db-934d-6e8682e107bd","block_type":"box","text":"n with the purchase or redemption of Portfolio shares.","page_number":49,"box":{"x":483,"y":147,"width":376,"height":12}},{"id":"1a625638-6dd5-43ca-b148-1f54728d0c4e","block_type":"box","text":"The amount and applicability of such a fee is determined and disclosed to its customers by each individual","page_number":49,"box":{"x":116,"y":162,"width":736,"height":13}},{"id":"5c23dee5-51b1-4539-bc29-d3c5c0ad193e","block_type":"box","text":"insurance company. Service fees typically are fixed, nominal dollar amounts and are in addition to the sales","page_number":49,"box":{"x":116,"y":178,"width":743,"height":12}},{"id":"4c496258-a494-4ae0-a7f7-07b27746067e","block_type":"box","text":"and other charges described in the Prospectuses and this SAI. Your insurance company will provide you with","page_number":49,"box":{"x":116,"y":193,"width":755,"height":13}},{"id":"79f1b26d-d1aa-4119-902c-62e1cb78c3ec","block_type":"box","text":"specific information about any service fees you will be charged.","page_number":49,"box":{"x":116,"y":209,"width":437,"height":12}},{"id":"b4bc25fc-c794-4540-8489-5a153e3e1e6a","block_type":"box","text":"A Portfolio may enter into agreements with insurance c","page_number":49,"box":{"x":116,"y":230,"width":383,"height":13}},{"id":"f3a30777-36b3-42de-b908-6b2b11542be3","block_type":"box","text":"ompanies pursuant to which the Portfolio will pay an","page_number":49,"box":{"x":500,"y":230,"width":371,"height":13}},{"id":"af104e61-a382-40a8-b898-e426e123a9c9","block_type":"box","text":"insurance company for administrative, networking,","page_number":49,"box":{"x":116,"y":245,"width":355,"height":13}},{"id":"be393db8-0ce8-4eb1-89ec-b72750d1e712","block_type":"box","text":"recordkeeping, sub-transfer agency and shareholder","page_number":49,"box":{"x":477,"y":245,"width":358,"height":13}},{"id":"2cef83cc-287d-421f-9bd9-cf813c7db648","block_type":"box","text":"services. These payments are generally based on either (1) a percentage of the average daily net assets of","page_number":49,"box":{"x":116,"y":261,"width":719,"height":13}},{"id":"b44796c3-88f4-42a6-8e7f-c99330d3f935","block_type":"box","text":"Portfolio shareholders serviced by an insurance company or (2) a fixed dollar amount for each account","page_number":49,"box":{"x":116,"y":276,"width":714,"height":13}},{"id":"67294d93-b142-4cf6-b85d-35bf042a9a0d","block_type":"box","text":"serviced by an insurance company. The aggregate amount of these payments may be substantial. From time to","page_number":49,"box":{"x":116,"y":292,"width":765,"height":13}},{"id":"a465af6a-db31-4b57-b3ac-8b0472198989","block_type":"box","text":"time, the Manager, the Distributor or their affiliates also may pay a portion of the fees for administrative,","page_number":49,"box":{"x":116,"y":307,"width":731,"height":13}},{"id":"bf1d5010-5965-4ad6-9cc8-ab5e50efdd6f","block_type":"box","text":"networking, recordkeeping, sub-transfer agency and shareholder services described above at its or their own","page_number":49,"box":{"x":116,"y":323,"width":749,"height":13}},{"id":"ab882ed6-24bf-44f5-b320-54a9232b62ec","block_type":"box","text":"expense and out of its or their legitimate profits.","page_number":49,"box":{"x":116,"y":338,"width":333,"height":13}},{"id":"4b10bcd8-30a1-482d-80d9-ec29d2520e6c","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":49,"box":{"x":116,"y":363,"width":364,"height":13}},{"id":"c5cdd59b-3653-413f-ad90-0e532abd28a9","block_type":"box","text":"The offering price for a Portfolio’s shares is equal to the net asset value computed by dividing the value of the","page_number":49,"box":{"x":116,"y":387,"width":758,"height":12}},{"id":"dad94bab-da08-4d2e-905c-d84508beeeba","block_type":"box","text":"Portfolio’s net assets by the number of shares outstanding. For more information on the purchasing and","page_number":49,"box":{"x":116,"y":402,"width":720,"height":13}},{"id":"152e7dac-f397-4350-8ec3-dcda1673bdcb","block_type":"box","text":"valuation of shares, please see “Purchase of Shares” and “Pricing of Shares,” as applicable, in the relevant","page_number":49,"box":{"x":116,"y":418,"width":733,"height":12}},{"id":"1ac28ddb-70d2-4e44-b776-5f4dee1b1d24","block_type":"box","text":"Part II of this SAI for your Portfolio. The Subsidiary is subject to the same valuation policies as Global","page_number":49,"box":{"x":116,"y":433,"width":709,"height":13}},{"id":"5bbc4349-90b3-4c94-a255-b4bc38636984","block_type":"box","text":"Allocation Portfolio as described in “Pricing of Shares”","page_number":49,"box":{"x":116,"y":449,"width":381,"height":12}},{"id":"3298dd00-cd26-4115-afea-75d217fa5836","block_type":"box","text":"in Part II of this SAI. Global Allocation Portfolio’s","page_number":49,"box":{"x":504,"y":449,"width":347,"height":10}},{"id":"666a79a9-5d4f-4bb8-a192-0c963eff0eba","block_type":"box","text":"investment in the Subsidiary is valued based on the value of the Subsidiary’s portfolio investments. The","page_number":49,"box":{"x":116,"y":464,"width":713,"height":13}},{"id":"f971d327-3ca7-4fca-b7f5-e7badf3519eb","block_type":"box","text":"Subsidiary prices its portfolio investments pursuant to the same pricing and valuation methodologies and","page_number":49,"box":{"x":116,"y":480,"width":728,"height":12}},{"id":"5effa24d-43d7-41a4-8b1c-03f8db9c5e5c","block_type":"box","text":"procedures used by Global Allocation Portfolio, which require, among other things, that the Subsidiary’s","page_number":49,"box":{"x":116,"y":495,"width":726,"height":13}},{"id":"a68c0243-149f-45d4-b01f-c806b10184f6","block_type":"box","text":"portfolio investments be marked-to-market (that is, the value on the Subsidiary’s books changes) each","page_number":49,"box":{"x":116,"y":511,"width":706,"height":12}},{"id":"30895520-741d-455b-8f3c-476dca770e5a","block_type":"box","text":"business day to reflect changes in the market value of the investment.","page_number":49,"box":{"x":116,"y":526,"width":477,"height":13}},{"id":"132a608a-05b0-4837-b370-4b4500f7693c","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":49,"box":{"x":116,"y":551,"width":342,"height":13}},{"id":"86af2f98-6adf-43c7-87c1-119b7ea79d04","block_type":"box","text":"See “Portfolio Transactions and Brokerage” and “Portfolio Transactions,” as applicable, in the relevant","page_number":49,"box":{"x":116,"y":574,"width":720,"height":13}},{"id":"04abc5f8-203d-4099-a5b9-4e799da62f88","block_type":"box","text":"Part II of this SAI for your Portfolio for more information.","page_number":49,"box":{"x":116,"y":590,"width":405,"height":13}},{"id":"79f3036c-be7d-442d-b1a9-a5ff47b0c0b2","block_type":"box","text":"Brokerage Commissions","page_number":49,"box":{"x":136,"y":615,"width":176,"height":13}},{"id":"84a7691d-62c2-45e9-8207-990447e64173","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to Affiliates, is","page_number":49,"box":{"x":116,"y":638,"width":750,"height":13}},{"id":"24ae33b0-16ed-4355-b687-cfeb2ed56c82","block_type":"box","text":"set forth in the following table:","page_number":49,"box":{"x":116,"y":654,"width":214,"height":12}},{"id":"5e18f41d-5e5a-4921-b5db-87404dbe51a8","block_type":"box","text":"Aggregate Brokerage","page_number":49,"box":{"x":581,"y":677,"width":122,"height":11}},{"id":"174a4855-ac21-44be-b9a9-c94ad7f56533","block_type":"box","text":"Commissions Paid","page_number":49,"box":{"x":589,"y":688,"width":106,"height":8}},{"id":"c83f0afb-da03-4c87-8d48-1d9d8249d41c","block_type":"box","text":"Commissions Paid","page_number":49,"box":{"x":769,"y":677,"width":106,"height":8}},{"id":"7d24ce16-3060-46a0-9525-231abe9cd8ae","block_type":"box","text":"to Affiliates","page_number":49,"box":{"x":788,"y":688,"width":67,"height":8}},{"id":"d5ae42bb-ea6a-4a56-8bbe-521f0e9eff9d","block_type":"box","text":"For the Year 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Large Cap Core Portfolio $35,341 $48,733 $56,025 $0 $0 $0","page_number":49,"box":{"x":116,"y":746,"width":759,"height":10}},{"id":"bdb13d7c-f9c3-471d-b5e8-9531c26c5317","block_type":"box","text":"Balanced Portfolio $75,846 $77,065 $87,110 $0 $0 $0","page_number":49,"box":{"x":116,"y":761,"width":759,"height":10}},{"id":"63367155-7b26-4abc-8525-ecf013b57e6d","block_type":"box","text":"Capital Appreciation Portfolio","page_number":49,"box":{"x":116,"y":777,"width":176,"height":10}},{"id":"ae8d6bf9-79ab-4278-9447-b6f10067f3e7","block_type":"box","text":"1","page_number":49,"box":{"x":293,"y":778,"width":4,"height":4}},{"id":"c0203db5-0be0-4e41-8d7a-f66d57a95cf0","block_type":"box","text":"$51,154 $13,813 $19,356 $0 $0 $0","page_number":49,"box":{"x":545,"y":777,"width":330,"height":10}},{"id":"e348e2a9-6aa4-4994-a127-e296f8784e3f","block_type":"box","text":"Global Allocation Portfolio $123,578 $143,800 $127,521 $0 $0 $0","page_number":49,"box":{"x":116,"y":792,"width":759,"height":10}},{"id":"de08519d-93c1-46e4-8ea7-2ba215c279fb","block_type":"box","text":"Government Money Market Portfolio $0 $0 $0 $0 $0 $0","page_number":49,"box":{"x":116,"y":808,"width":759,"height":10}},{"id":"332d364d-6ea0-4e44-9c94-a07a35d61000","block_type":"box","text":"1","page_number":49,"box":{"x":128,"y":825,"width":4,"height":4}},{"id":"75e10585-ca3d-48e3-9c24-8e5319ff434e","block_type":"box","text":"The increase in the brokerage commissions paid by BlackRock Capital Appreciation Portfolio for the fiscal year ended","page_number":49,"box":{"x":146,"y":824,"width":685,"height":10}},{"id":"d1129c1f-f58d-44e0-a018-e920aa73741d","block_type":"box","text":"December 31, 2025 as compared to the prior fiscal year was primarily driven by increased market volatility and turnover.","page_number":49,"box":{"x":146,"y":834,"width":704,"height":11}},{"id":"28e2403c-3a06-4175-8431-fc2d0954e7eb","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing","page_number":49,"box":{"x":116,"y":854,"width":706,"height":12}},{"id":"86312918-96bf-4ed5-897a-be1f708ab941","block_type":"box","text":"Section 28(e) research/brokerage services under Section 28(e) of the Securities Exchange Act of 1934, as","page_number":49,"box":{"x":116,"y":869,"width":718,"height":13}},{"id":"b3d7b3ed-f301-4d12-84cb-e59557ced63e","block_type":"box","text":"I-32","page_number":49,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"141db1e2-6f2c-4354-9134-6bd38b0e7dff","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":49,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"07746e6f-ef15-4517-af5d-fa81e6969c36","block_type":"box","text":"amended, and the approximate dollar amount of the transactions involved for the fiscal year ended","page_number":50,"box":{"x":116,"y":79,"width":687,"height":13}},{"id":"aa0e52cb-50e4-4e72-82cd-004c7396482f","block_type":"box","text":"December 31, 2025. The provision of Section 28(e) research/brokerage services was not necessarily a factor in","page_number":50,"box":{"x":116,"y":94,"width":762,"height":13}},{"id":"f6ff2be6-cb0a-471e-8d7b-bb2f50eb3929","block_type":"box","text":"the placement of all brokerage business with such brokers.","page_number":50,"box":{"x":116,"y":110,"width":405,"height":13}},{"id":"0d985af4-db83-4dc0-a4e6-578edcbc4b17","block_type":"box","text":"Amount of Commissions","page_number":50,"box":{"x":552,"y":138,"width":144,"height":8}},{"id":"6c2ad3b0-93f8-4a67-a083-3bff7cfa61eb","block_type":"box","text":"Paid to Brokers for","page_number":50,"box":{"x":569,"y":148,"width":111,"height":8}},{"id":"740007d4-f7a2-4934-83bd-16172bfe1a89","block_type":"box","text":"Providing 28(e) Eligible","page_number":50,"box":{"x":556,"y":158,"width":136,"height":11}},{"id":"636c0571-ac6e-46c0-8e3c-a4df36fa2463","block_type":"box","text":"Research Services","page_number":50,"box":{"x":574,"y":169,"width":101,"height":8}},{"id":"7538de16-870e-45cb-ba6d-4f9873739348","block_type":"box","text":"Amount of Brokerage","page_number":50,"box":{"x":715,"y":158,"width":127,"height":11}},{"id":"daff9996-deba-4511-9d06-e7f747552d1e","block_type":"box","text":"Transactions Involved","page_number":50,"box":{"x":714,"y":169,"width":129,"height":8}},{"id":"2cb33d51-06c8-4ab5-a3ab-36ed0f08b709","block_type":"box","text":"Advantage Large Cap Core Portfolio $19,523 $147,978,883","page_number":50,"box":{"x":136,"y":188,"width":682,"height":10}},{"id":"30999c83-682b-40ec-9009-476aebbdb7b8","block_type":"box","text":"Balanced Portfolio $19,904 $93,158,242","page_number":50,"box":{"x":136,"y":203,"width":679,"height":10}},{"id":"38524ba1-083d-493f-aed8-a59083555f1b","block_type":"box","text":"Capital Appreciation Portfolio $34,673 $228,830,690","page_number":50,"box":{"x":137,"y":219,"width":682,"height":10}},{"id":"1d6f7520-ca55-4a27-94b2-c411e4a917f0","block_type":"box","text":"Global Allocation Portfolio $23,263 $79,229,252","page_number":50,"box":{"x":137,"y":234,"width":678,"height":10}},{"id":"47d2d855-fe9c-4ab6-9641-f763c8c5e99d","block_type":"box","text":"Securities Lending","page_number":50,"box":{"x":116,"y":261,"width":131,"height":13}},{"id":"4bb1670e-c9e8-498f-85a9-fb9387e050bd","block_type":"box","text":"To the extent that a Portfolio engages in securities lending, the Portfolio conducts its securities lending","page_number":50,"box":{"x":116,"y":287,"width":708,"height":13}},{"id":"b109b5c8-4670-4a15-aa48-4b9b5a842134","block_type":"box","text":"pursuant to an exemptive order from the Commission","page_number":50,"box":{"x":116,"y":302,"width":375,"height":13}},{"id":"9fc36925-786c-4a12-b30f-4dd351d7651d","block_type":"box","text":"permitting it to lend portfolio securities to borrowers","page_number":50,"box":{"x":496,"y":302,"width":367,"height":13}},{"id":"4b763169-cd6e-4ff7-ac78-c5ba6402583b","block_type":"box","text":"affiliated with the Portfolio and to retain an affiliate of the Portfolio as securities lending agent. To the extent","page_number":50,"box":{"x":116,"y":318,"width":756,"height":13}},{"id":"f7905322-a328-4134-9a2f-c763494f124f","block_type":"box","text":"that a Portfolio engages in securities lending, BlackRock Investment Management, LLC (“BIM”) acts as","page_number":50,"box":{"x":116,"y":333,"width":720,"height":13}},{"id":"a3255c39-727c-4b34-b68c-8e5cf3232b10","block_type":"box","text":"securities lending agent for the Portfolio, subject to the overall supervision of the Manager, pursuant to a","page_number":50,"box":{"x":116,"y":349,"width":727,"height":13}},{"id":"094fd49a-6c8f-417c-bac4-10467fb3a84f","block_type":"box","text":"written agreement (the “Securities Lending Agency Ag","page_number":50,"box":{"x":116,"y":364,"width":376,"height":13}},{"id":"2e65f332-abfc-4143-bb0d-cc54b354f2ab","block_type":"box","text":"reement”). BIM administers the lending program in","page_number":50,"box":{"x":493,"y":364,"width":357,"height":13}},{"id":"dd6b1762-cc34-4428-a8e0-5edac3e6b392","block_type":"box","text":"accordance with guidelines approved by the Board.","page_number":50,"box":{"x":116,"y":380,"width":354,"height":13}},{"id":"06b8da86-8e07-4573-88a7-ff5afa03db04","block_type":"box","text":"Those Portfolios that engage in securities lending retain a portion of the securities lending income and remit","page_number":50,"box":{"x":116,"y":403,"width":746,"height":13}},{"id":"8ae4ab3d-4e98-4133-bf9e-213cbc4144fd","block_type":"box","text":"the remaining portion to BIM as compensation for its services as securities lending agent. Securities lending","page_number":50,"box":{"x":116,"y":419,"width":741,"height":12}},{"id":"451e990b-e1e9-4895-aa9c-5bbd0f7a49d4","block_type":"box","text":"income is generally equal to the total of income earned from the reinvestment of cash collateral (and excludes","page_number":50,"box":{"x":116,"y":434,"width":758,"height":13}},{"id":"89698cf0-2a1b-4441-a7b3-0be4a582af62","block_type":"box","text":"collateral investment fees as defined below), and any fees or other payments to and from borrowers of","page_number":50,"box":{"x":116,"y":450,"width":709,"height":12}},{"id":"17855143-2dc7-4fa0-928f-f156a565a413","block_type":"box","text":"securities. As securities lending agent, BIM bears all operational costs directly related to securities lending.","page_number":50,"box":{"x":116,"y":465,"width":733,"height":13}},{"id":"82e4d492-bba9-4471-815f-ce4d349f6a9b","block_type":"box","text":"Each Portfolio is responsible for fees in connection with the investment of cash collateral received for securities","page_number":50,"box":{"x":116,"y":481,"width":767,"height":12}},{"id":"793fa1b6-1319-4a87-bf80-c786125812db","block_type":"box","text":"on loan in a money market fund managed by BlackRock (the “collateral investment fees”); however, the","page_number":50,"box":{"x":116,"y":496,"width":724,"height":13}},{"id":"31fb2b9f-1e92-4a9a-b096-00d10e923f58","block_type":"box","text":"securities lending agent has agreed to reduce the amount of securities lending income it receives in order to","page_number":50,"box":{"x":116,"y":512,"width":737,"height":12}},{"id":"1429af52-1278-47e2-9113-9cc98ee9ed05","block_type":"box","text":"effectively limit the collateral investment fees a Portfolio bears to an annual rate of 0.04%. Such money","page_number":50,"box":{"x":116,"y":527,"width":717,"height":13}},{"id":"2230f1b8-296d-428f-8eeb-60d4c0642b5c","block_type":"box","text":"market fund shares will not be subject to a sales load, distribution fee or service fee.","page_number":50,"box":{"x":116,"y":543,"width":579,"height":12}},{"id":"87aa0d1a-d71d-4805-a86f-58da4bd07665","block_type":"box","text":"To the extent that a Portfolio invests cash collateral in a non-government money market fund, the Portfolio","page_number":50,"box":{"x":116,"y":566,"width":745,"height":13}},{"id":"9391f9cc-b3d3-4ec7-b232-7e6ff76df437","block_type":"box","text":"may be subject to a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees","page_number":50,"box":{"x":116,"y":581,"width":733,"height":13}},{"id":"12c8f735-6e24-4d80-bb41-aa4cc59ed441","block_type":"box","text":"may be imposed or terminated at any time at the discretion of the board of directors of the money market","page_number":50,"box":{"x":116,"y":597,"width":734,"height":13}},{"id":"1265decf-9a7b-4246-833f-fc3ec1a1b6a5","block_type":"box","text":"fund, or its delegate, if it is determined that such fee would be, or would not be, respectively, in the best","page_number":50,"box":{"x":116,"y":612,"width":718,"height":13}},{"id":"e3a4ba14-70f6-44d8-8959-09b041d6f33a","block_type":"box","text":"interest of the money market fund. Additionally, a Portfolio will be subject to a mandatory liquidity fee if the","page_number":50,"box":{"x":116,"y":628,"width":757,"height":13}},{"id":"9c389aed-5ed8-444c-a93f-db302b205725","block_type":"box","text":"money market fund’s total net redemptions on a single day exceed 5% of the money market fund’s net assets,","page_number":50,"box":{"x":116,"y":643,"width":759,"height":13}},{"id":"88d7e4bd-8495-4a4f-81a9-27f4193c9d28","block_type":"box","text":"unless the liquidity costs are de minimis (i.e., less than one basis point (0.01%)). The money market fund will","page_number":50,"box":{"x":116,"y":659,"width":758,"height":13}},{"id":"a0813a96-5abd-4ae5-ac5f-06c1b175c5d9","block_type":"box","text":"determine the size of the mandatory liquidity fee by making a good faith estimate of certain costs the money","page_number":50,"box":{"x":116,"y":674,"width":749,"height":13}},{"id":"31214e91-11a1-499b-9d27-b713f6b4a392","block_type":"box","text":"market fund would incur if it were to sell a pro rata amount of each security in the portfolio to satisfy the","page_number":50,"box":{"x":116,"y":690,"width":731,"height":13}},{"id":"d761e379-3c08-43dd-98cc-d8b4d01fa134","block_type":"box","text":"amount of net redemptions on that day. There is no limit to the size of a mandatory liquidity fee. If the money","page_number":50,"box":{"x":116,"y":705,"width":764,"height":13}},{"id":"4854b6c9-aa5c-462c-960e-36f4c466e3fb","block_type":"box","text":"market fund cannot estimate the costs of selling a pro rata amount of each portfolio security in good faith and","page_number":50,"box":{"x":116,"y":721,"width":764,"height":13}},{"id":"bf800743-2733-4b5f-b46c-be33b37cfda6","block_type":"box","text":"supported by data, it is required to apply a default liquidity fee of 1% on the value of shares redeemed on that","page_number":50,"box":{"x":116,"y":736,"width":764,"height":13}},{"id":"18f9148a-de0d-44dd-bb14-f4faa7f7a71e","block_type":"box","text":"day. The imposition of any such discretionary or mandatory liquidity fee would reduce the Portfolios’ returns","page_number":50,"box":{"x":116,"y":752,"width":759,"height":13}},{"id":"3f857dc5-578b-4b5e-bbd4-1262f81d6156","block_type":"box","text":"on securities lending.","page_number":50,"box":{"x":116,"y":767,"width":144,"height":13}},{"id":"50e059b3-e90d-4384-9bcb-13763f92675c","block_type":"box","text":"Under the securities lending program, the Portfolios are categorized into one of several specific asset classes.","page_number":50,"box":{"x":116,"y":790,"width":745,"height":13}},{"id":"e6e2e86e-6d09-4b19-b29d-6d4b1ca012eb","block_type":"box","text":"The determination of a Portfolio’s asset class category (fix","page_number":50,"box":{"x":116,"y":804,"width":402,"height":13}},{"id":"33aeb29c-5e05-44d0-b4cb-9664a64bfa2d","block_type":"box","text":"ed-income, domestic equity, international equity, or","page_number":50,"box":{"x":519,"y":804,"width":358,"height":13}},{"id":"e0469b2e-fc4a-4de1-a1ec-3bc5e9bda3be","block_type":"box","text":"fund of funds), each of which may be subject to a different fee arrangement, is based on a methodology agreed","page_number":50,"box":{"x":116,"y":819,"width":767,"height":13}},{"id":"5d8dfa12-8e5e-4d5a-ad43-83e3d3e59a48","block_type":"box","text":"to by the the Portfolios and BIM.","page_number":50,"box":{"x":116,"y":834,"width":229,"height":12}},{"id":"fd23d71d-f61f-4168-ba1d-3fad27c9614f","block_type":"box","text":"I-33","page_number":50,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"166939e3-e6ec-44ef-9978-709f63889bf9","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":50,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f8672e61-a67b-4b73-a7ff-4f3154e18873","block_type":"box","text":"Pursuant to the current securities lending agreement: (i) if Government Money Market Portfolio were to","page_number":51,"box":{"x":116,"y":78,"width":722,"height":13}},{"id":"a8271683-8747-4be9-b584-e5e02e600935","block_type":"box","text":"engage in securities lending, the Portfolio retains 82% of securities lending income (which excludes collateral","page_number":51,"box":{"x":116,"y":92,"width":754,"height":13}},{"id":"20aa4c1e-4705-4f77-8222-8d31988eaa9d","block_type":"box","text":"investment fees); and (ii) this amount can never be less than 70% of the sum of securities lending income plus","page_number":51,"box":{"x":116,"y":107,"width":757,"height":13}},{"id":"d9f5423a-693e-4404-90f1-f9d72491cbfc","block_type":"box","text":"collateral investment fees.","page_number":51,"box":{"x":116,"y":122,"width":177,"height":10}},{"id":"7f97a420-8cec-4fc3-8845-cf8426767982","block_type":"box","text":"Pursuant to the current securities lending agreement: (i) Advantage Large Cap Core Portfolio, Global","page_number":51,"box":{"x":116,"y":144,"width":700,"height":13}},{"id":"0a600bd7-8c2c-46b3-9747-80ad3d810f24","block_type":"box","text":"Allocation Portfolio and Capital Appreciation Portfo","page_number":51,"box":{"x":116,"y":159,"width":367,"height":12}},{"id":"c0912ba9-17e4-4fde-8b04-d8a3b3e24d0c","block_type":"box","text":"lio retain 81% of securities lending income (which","page_number":51,"box":{"x":484,"y":159,"width":349,"height":12}},{"id":"4ab14755-d2f9-4758-a8f7-da9a4d76bca4","block_type":"box","text":"excludes collateral investment fees); and (ii) this amount can never be less than 70% of the sum of securities","page_number":51,"box":{"x":116,"y":173,"width":746,"height":13}},{"id":"bda798c1-ee75-410d-a2c7-600085bde797","block_type":"box","text":"lending income plus collateral investment fees.","page_number":51,"box":{"x":116,"y":188,"width":320,"height":13}},{"id":"92c4deb2-82b1-415b-b5cf-c2c48276c99e","block_type":"box","text":"Pursuant to the current securities lending agreement: (i) Balanced Portfolio retains 82% of securities lending","page_number":51,"box":{"x":116,"y":210,"width":748,"height":13}},{"id":"c910ea05-976a-4efe-a25c-968231c711b1","block_type":"box","text":"income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the","page_number":51,"box":{"x":116,"y":225,"width":734,"height":12}},{"id":"fef72ca6-75d0-406d-a2cc-0085a3ba0bbc","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":51,"box":{"x":116,"y":239,"width":440,"height":13}},{"id":"39576132-5172-4f98-b583-edd98e9aaabe","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":51,"box":{"x":116,"y":262,"width":727,"height":13}},{"id":"86806b5a-af8a-4845-97bd-1ed95f7ecb08","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a","page_number":51,"box":{"x":116,"y":276,"width":384,"height":13}},{"id":"8be70910-0458-45b9-a7b0-156b4b870ce0","block_type":"box","text":"calendar year exceeds specific thresholds, each","page_number":51,"box":{"x":505,"y":276,"width":321,"height":13}},{"id":"73cffd81-463d-4042-aedf-2d1013d64265","block_type":"box","text":"Portfolio, pursuant to the current securities lending agreement, will receive for the remainder of that calendar","page_number":51,"box":{"x":116,"y":291,"width":757,"height":13}},{"id":"e2e54b44-2c05-4a26-ad91-652a4a6cc774","block_type":"box","text":"year securities lending income as follows:","page_number":51,"box":{"x":116,"y":306,"width":284,"height":12}},{"id":"d5fcdc18-2efe-4389-bb47-b5f98c6bee1d","block_type":"box","text":"Government Money Market Portfolio","page_number":51,"box":{"x":117,"y":336,"width":273,"height":12}},{"id":"69411df7-8477-400c-b607-c5010c43a39e","block_type":"box","text":"(i) if the Portfolio were to engage in securities lending, 85% of securities lending income (which","page_number":51,"box":{"x":151,"y":361,"width":705,"height":12}},{"id":"4742ef62-d7af-4c6b-abaf-d978a6aa1bd2","block_type":"box","text":"excludes collateral investment fees); and (ii) this amount can never be less than 70% of the sum","page_number":51,"box":{"x":184,"y":375,"width":692,"height":13}},{"id":"f0893142-6d9c-473b-aa40-710572a34260","block_type":"box","text":"of securities lending income plus collateral investment fees.","page_number":51,"box":{"x":184,"y":390,"width":426,"height":13}},{"id":"0193985d-c26c-4d74-bece-b431f6254eb9","block_type":"box","text":"Advantage Large Cap Core Portfolio, Global Allocation Portfolio and Capital Appreciation Portfolio","page_number":51,"box":{"x":116,"y":420,"width":739,"height":13}},{"id":"1656d2b1-d962-46f9-99b4-0ba53dedfd7e","block_type":"box","text":"(i) 84% of securities lending income (which excludes collateral investment fees); and (ii) this","page_number":51,"box":{"x":151,"y":445,"width":680,"height":13}},{"id":"adeb482e-4f1c-47a8-bb86-76bf3157a2dc","block_type":"box","text":"amount can never be less than 70% of the sum of securities lending income plus collateral","page_number":51,"box":{"x":184,"y":459,"width":652,"height":13}},{"id":"855e1a0e-a5a9-497d-bff1-37055dc83709","block_type":"box","text":"investment fees.","page_number":51,"box":{"x":184,"y":474,"width":113,"height":10}},{"id":"d655d881-759a-4f9f-a1e6-ef19024558b6","block_type":"box","text":"Balanced Portfolio","page_number":51,"box":{"x":116,"y":504,"width":135,"height":13}},{"id":"30547048-40c3-447c-8d2d-1f1b11b3fed4","block_type":"box","text":"(i) 85% of securities lending income (which excludes collateral investment fees); and (ii) this","page_number":51,"box":{"x":151,"y":529,"width":680,"height":13}},{"id":"c113b77c-1fb2-488d-b485-b37e65401fa3","block_type":"box","text":"amount can never be less than 70% of the sum of securities lending income plus collateral","page_number":51,"box":{"x":184,"y":544,"width":652,"height":12}},{"id":"a03fa4f2-8884-4cb7-bb4a-29716cf8152c","block_type":"box","text":"investment fees.","page_number":51,"box":{"x":184,"y":558,"width":113,"height":10}},{"id":"a8fae923-55d5-49d3-ad79-ae7725e57918","block_type":"box","text":"The services provided to each Portfolio by BIM, in the most recent fiscal year ended December 31, 2025","page_number":51,"box":{"x":116,"y":581,"width":721,"height":12}},{"id":"cfec0251-165d-4949-80ea-1fc47a0a6812","block_type":"box","text":"primarily included the following:","page_number":51,"box":{"x":116,"y":595,"width":227,"height":13}},{"id":"d628b655-7950-47ff-81bc-9637f84b302d","block_type":"box","text":"(1) selecting borrowers from an approved list of bo","page_number":51,"box":{"x":117,"y":618,"width":353,"height":12}},{"id":"6ae9892c-0465-4442-854f-b2f804c4a4d7","block_type":"box","text":"rrowers and executing a securities lending agreement as","page_number":51,"box":{"x":471,"y":618,"width":384,"height":12}},{"id":"246c2ac2-b82d-46f9-8363-1ac59c4a7bb4","block_type":"box","text":"agent on behalf of each Portfolio with each such borrower;","page_number":51,"box":{"x":116,"y":632,"width":409,"height":13}},{"id":"e541622d-3deb-4031-b5eb-6c44a574d9f2","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":51,"box":{"x":117,"y":655,"width":507,"height":13}},{"id":"eb9688dd-1978-4fce-85c9-765c0761f31f","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":51,"box":{"x":117,"y":677,"width":309,"height":13}},{"id":"9e32dbfd-5b87-4ac3-b697-0ab7811b4952","block_type":"box","text":"(4) monitoring the daily value of the loaned securities and directing the payment of additional collateral or the","page_number":51,"box":{"x":117,"y":700,"width":762,"height":13}},{"id":"3dd0945a-bb73-4dab-adfd-d4e2bfbf617d","block_type":"box","text":"return of excess collateral, as necessary;","page_number":51,"box":{"x":116,"y":715,"width":274,"height":13}},{"id":"e0c4ea58-d210-4d32-bfb6-c8ba6cad600a","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":51,"box":{"x":117,"y":737,"width":534,"height":13}},{"id":"16bef1dc-ee05-4d8b-8aa9-5f3b8a7452cf","block_type":"box","text":"(6) monitoring distributions on loaned securitie","page_number":51,"box":{"x":117,"y":760,"width":327,"height":13}},{"id":"2da4f4df-d87a-4a60-997d-1ee2fc092a66","block_type":"box","text":"s (for example, interest and dividend activity);","page_number":51,"box":{"x":445,"y":760,"width":317,"height":13}},{"id":"d037d1ac-c403-4e08-9ef6-b83e9d6524e8","block_type":"box","text":"(7) in the event of default by a borrower with respect to any securities loan, 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Purchase of Shares","page_number":53,"box":{"x":116,"y":633,"width":202,"height":10}},{"id":"c87221b3-963b-4c45-8008-d0c8cf468a3d","block_type":"box","text":"The Fund continuously offers shares of each Portfolio at prices equal to the respective per share net asset value","page_number":53,"box":{"x":116,"y":659,"width":765,"height":13}},{"id":"7efd0bdd-e04d-4e18-8691-2903a4554c5c","block_type":"box","text":"of the Portfolios. BRIL acts as the Fund’s sole distributor.","page_number":53,"box":{"x":116,"y":675,"width":397,"height":10}},{"id":"2e49239e-63ca-447c-acba-f962b04b6d77","block_type":"box","text":"Net asset value is determined in the manner set forth under “Determination of Net Asset Value.”","page_number":53,"box":{"x":116,"y":698,"width":672,"height":10}},{"id":"42c07d37-9a98-44fa-955e-0280f6f74571","block_type":"box","text":"The Fund and the Distributor reserve the right to suspend the sale of shares of each Portfolio in response to","page_number":53,"box":{"x":116,"y":722,"width":743,"height":12}},{"id":"03c26657-8e2d-4965-a453-1d64fae37e47","block_type":"box","text":"conditions in the securities markets or otherwise. Any order may be rejected by the Fund or the Distributor.","page_number":53,"box":{"x":116,"y":737,"width":746,"height":13}},{"id":"570f9d04-6490-434e-8b2e-e1628c797e6a","block_type":"box","text":"Generally, only insurance company separate accounts may purchase Portfolio shares, for the benefit of such","page_number":53,"box":{"x":117,"y":761,"width":737,"height":13}},{"id":"833af308-4455-4122-8951-12566d642e05","block_type":"box","text":"insurance company’s contract holders who elect to have all or a portion of their premium contributions","page_number":53,"box":{"x":116,"y":776,"width":708,"height":13}},{"id":"b68a9916-2684-4b76-8d67-efd3244918f1","block_type":"box","text":"invested in shares of the Portfolios. Accordingly, each insurance company separate account that owns shares of","page_number":53,"box":{"x":116,"y":792,"width":762,"height":13}},{"id":"c5bdd61e-7c86-4ebb-afc6-46ca3b280508","block_type":"box","text":"the Portfolios maintains omnibus accounts with the Transfer Agent for the benefit of the insurance company’s","page_number":53,"box":{"x":116,"y":807,"width":754,"height":13}},{"id":"5e750bad-99f8-4266-9636-ed4171f1d987","block_type":"box","text":"contract owners, often resulting in considerable savings in administrative expenses for the Fund’s management.","page_number":53,"box":{"x":116,"y":823,"width":760,"height":13}},{"id":"d26e8727-4853-4151-9578-7c888034f530","block_type":"box","text":"The Manager, the Distributor or their affiliates may make payments out of their own resources to insurance","page_number":53,"box":{"x":116,"y":838,"width":740,"height":13}},{"id":"78b8b314-3df5-4cba-98ab-73da85c37bbe","block_type":"box","text":"companies and other financial intermediaries to compensate them for performing sub-transfer agency,","page_number":53,"box":{"x":116,"y":854,"width":699,"height":13}},{"id":"8b9250a1-1ba2-426c-a28a-6bc3e1e34a8b","block_type":"box","text":"recordkeeping and other administrative services on behalf of individual contract owners. The aggregate amount","page_number":53,"box":{"x":116,"y":869,"width":765,"height":13}},{"id":"99794ecc-9982-40cc-a7d3-eb52b437ff64","block_type":"box","text":"I-36","page_number":53,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"388d2018-1096-4cb5-9a15-bce150a7063c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":53,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"defafb1c-f007-4abe-a988-a7d333c4985d","block_type":"box","text":"of these payments may be substantial. From time to time, the Manager, the Distributor or their affiliates also","page_number":54,"box":{"x":116,"y":79,"width":745,"height":13}},{"id":"5f59cf6d-864e-4e56-ab57-46dc775b4ef3","block_type":"box","text":"may pay a portion of the fees for administrative, networking, recordkeeping, sub-transfer agency and","page_number":54,"box":{"x":116,"y":94,"width":693,"height":13}},{"id":"c133ec55-404e-4e6f-83cf-8bef271d7678","block_type":"box","text":"shareholder services described above at its or their own expense and out of its or their legitimate profits.","page_number":54,"box":{"x":116,"y":110,"width":712,"height":13}},{"id":"d14b18ca-8afa-4c14-86ed-cf57b61f3a09","block_type":"box","text":"Pricing of Fund Shares — Government Money Market Portfolio","page_number":54,"box":{"x":136,"y":137,"width":465,"height":13}},{"id":"98de5e5c-8533-4730-9b5d-226372c992c1","block_type":"box","text":"In accordance with the SEC rule applicable to the","page_number":54,"box":{"x":116,"y":162,"width":343,"height":13}},{"id":"5772e453-dff8-4f31-94cd-20ba52779aa0","block_type":"box","text":"valuation of the portfolio securities of the Government","page_number":54,"box":{"x":464,"y":162,"width":379,"height":13}},{"id":"08735fa9-36d6-4fb2-8d96-ba46a93b6b00","block_type":"box","text":"Money Market Portfolio and consistent with its operating policies, the Government Money Market Portfolio","page_number":54,"box":{"x":116,"y":178,"width":757,"height":12}},{"id":"8f8fdba7-a30e-4f50-9cd0-545c6003b646","block_type":"box","text":"will maintain a dollar-weighted average portfolio maturity of 60 days or less, purchase instruments having","page_number":54,"box":{"x":116,"y":193,"width":738,"height":13}},{"id":"55a16a86-b07b-40bf-8dc5-d5ee04b251be","block_type":"box","text":"remaining maturities of 397 calendar days or less only (with certain exceptions), and invest only in securities","page_number":54,"box":{"x":116,"y":209,"width":751,"height":12}},{"id":"0f509e65-0125-4ccc-8b4c-70c15f87747f","block_type":"box","text":"determined by the Manager to be “eligible securities” under the rule. In addition, the Directors have","page_number":54,"box":{"x":116,"y":224,"width":693,"height":13}},{"id":"790f0fd3-5a79-466f-a27f-3e63e96d3bb8","block_type":"box","text":"established procedures designed to stabilize, to the extent","page_number":54,"box":{"x":116,"y":240,"width":396,"height":12}},{"id":"3af50cef-70b7-4692-8543-3157be5efce9","block_type":"box","text":"reasonably possible, the Portfolio’s price per share as","page_number":54,"box":{"x":517,"y":240,"width":366,"height":12}},{"id":"3d520924-7c77-41c9-b3c9-55411820f971","block_type":"box","text":"computed for the purpose of sales and redemptions at $1.00. The Government Money Market Portfolio","page_number":54,"box":{"x":116,"y":255,"width":722,"height":13}},{"id":"0672bf2c-98a7-4b6e-88d3-a9817229a153","block_type":"box","text":"calculates net asset value using amortized cost. Deviations of more than an insignificant amount between the","page_number":54,"box":{"x":116,"y":271,"width":753,"height":13}},{"id":"78389c1d-8c04-4956-b0af-216739c15124","block_type":"box","text":"net asset value calculated using market quotations and that calculated pursuant to the amortized cost method","page_number":54,"box":{"x":116,"y":286,"width":759,"height":13}},{"id":"0ab97e06-10e4-4518-9be9-aea5979a91ed","block_type":"box","text":"will be reported to the Directors by the Manager. In the event the Directors determine that a deviation exists","page_number":54,"box":{"x":116,"y":302,"width":751,"height":13}},{"id":"cde912f2-3c72-4707-ae38-36f303e00f3f","block_type":"box","text":"which may result in material dilution or other unfair resu","page_number":54,"box":{"x":116,"y":317,"width":397,"height":13}},{"id":"f0ab032e-5357-438a-8e39-80bad6b35db0","block_type":"box","text":"lts to investors or existing shareholders, the Portfolio","page_number":54,"box":{"x":514,"y":317,"width":365,"height":13}},{"id":"8eb1c184-7993-48b9-902c-f6c5576c0562","block_type":"box","text":"will take such corrective action as it regards as necessary and appropriate, including the sale of portfolio","page_number":54,"box":{"x":116,"y":333,"width":721,"height":13}},{"id":"1f4e1fd5-18c4-46b1-8b27-1e0e1bc5cd77","block_type":"box","text":"instruments prior to maturity to realize capital gains or losses or to shorten average portfolio maturity;","page_number":54,"box":{"x":116,"y":348,"width":711,"height":13}},{"id":"9c718f0a-97ae-45d6-90aa-86ce9de19751","block_type":"box","text":"withholding dividends; or establishing a net asset value","page_number":54,"box":{"x":116,"y":364,"width":381,"height":13}},{"id":"f252f2f0-4066-436e-8919-e7e765434e9b","block_type":"box","text":"per share by using available market quotations.","page_number":54,"box":{"x":502,"y":364,"width":327,"height":13}},{"id":"76aa93e2-038f-49ab-b26e-0129aa0d408a","block_type":"box","text":"If in the view of the Board of Directors of the Fund it is inadvisable to continue the practice of maintaining the","page_number":54,"box":{"x":116,"y":386,"width":765,"height":13}},{"id":"bedef2a9-d5ad-4b0a-8e38-4a1c0e4fd626","block_type":"box","text":"net asset value of the Government Money Market Portfolio at $1.00 per share, the Board of Directors of the","page_number":54,"box":{"x":116,"y":402,"width":752,"height":13}},{"id":"c8594bef-aaee-477d-9c21-5e03777ab222","block_type":"box","text":"Fund reserves the right to alter the procedure. The Fund will notify the accounts of any such alteration.","page_number":54,"box":{"x":116,"y":417,"width":714,"height":13}},{"id":"2c020aef-4fc2-4ff2-9d88-902f288e4574","block_type":"box","text":"See “Pricing of Shares” in Part II of this SAI for more information on the valuation of shares.","page_number":54,"box":{"x":116,"y":440,"width":644,"height":13}},{"id":"09bf9b64-cf3b-47ec-bd95-b8658b1c3e65","block_type":"box","text":"IX. Special Tax Rules Applicable to Variable Contracts","page_number":54,"box":{"x":116,"y":467,"width":441,"height":13}},{"id":"fae588ef-ef6a-47b1-be90-a7b057d1845f","block_type":"box","text":"Each Portfolio has elected to be treated, and intends to qualify each year, as a regulated investment company","page_number":54,"box":{"x":116,"y":492,"width":754,"height":13}},{"id":"1f7b3afa-9fbc-4c17-bd3c-becfd8c6900f","block_type":"box","text":"under the Internal Revenue Code. In order to qualify to be taxable as a regulated investment company, each","page_number":54,"box":{"x":116,"y":508,"width":749,"height":13}},{"id":"cc1b495f-669d-4734-ad9e-c32c942263f8","block_type":"box","text":"Portfolio must meet certain income and asset diversification tests and distribution requirements. 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If a segregated asset account fails these requirements, (i) the Contract would not","page_number":54,"box":{"x":116,"y":760,"width":757,"height":13}},{"id":"2f4e5da4-75da-4d82-bfb7-f1920028cf0e","block_type":"box","text":"be treated as an annuity or life insurance contract under the Internal Revenue Code and (ii) the holders of","page_number":54,"box":{"x":116,"y":776,"width":733,"height":13}},{"id":"24c0031b-7fac-4f2d-8883-a241683df736","block_type":"box","text":"such Contract would be required to include as ordinary income the “income on the contract” for each taxable","page_number":54,"box":{"x":116,"y":792,"width":764,"height":12}},{"id":"2b87ce70-8a78-44f3-a1d1-a973c7856a12","block_type":"box","text":"year. Generally, the “income on the contract” is the excess of (i) the sum of the increase in the net surrender","page_number":54,"box":{"x":116,"y":807,"width":747,"height":13}},{"id":"b1f3e0f1-0ac7-4fde-a95d-ccd23bb246a4","block_type":"box","text":"value of the Contract during the taxable year and the cost of the life insurance protection provided under the","page_number":54,"box":{"x":116,"y":823,"width":754,"height":12}},{"id":"070d96d6-0d25-417e-b7ab-5a871cdc110b","block_type":"box","text":"Contract during the year, over (ii) the premiums paid under the Contract during the taxable year. Contract","page_number":54,"box":{"x":117,"y":838,"width":740,"height":13}},{"id":"b76cb432-fb8f-43fb-8cb3-dd04422c9799","block_type":"box","text":"holders could also be taxable in future years even if the segregated asset account subsequently complied with","page_number":54,"box":{"x":116,"y":854,"width":753,"height":12}},{"id":"e2744b54-663a-4f15-9fe2-ae67e8e0eb23","block_type":"box","text":"the diversification tests.","page_number":54,"box":{"x":116,"y":869,"width":162,"height":10}},{"id":"d491cf27-8f59-4c9f-9719-90ee75e31dbb","block_type":"box","text":"I-37","page_number":54,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"1f298e11-d2ea-492a-aa63-33d651dbfaf2","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":54,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c3406bff-2649-4e74-9435-11f94c114f87","block_type":"box","text":"To satisfy these diversification requirements, as of the end of each calendar quarter or within 30 days","page_number":55,"box":{"x":116,"y":79,"width":701,"height":13}},{"id":"0e7cb1da-2406-464e-8b53-2a65798a7703","block_type":"box","text":"thereafter, each segregated asset account must meet one of two tests. Either (i) the segregated asset account","page_number":55,"box":{"x":116,"y":94,"width":740,"height":13}},{"id":"dd572d76-6e2b-459f-9c3b-c9e1dd2dc138","block_type":"box","text":"must have no more than 55% of its total assets represented by any one investment, no more than 70% of its","page_number":55,"box":{"x":116,"y":110,"width":752,"height":13}},{"id":"c6d0dcd1-c9b4-4248-98e8-7cf9c9ac11c6","block_type":"box","text":"total assets represented by any two investments, no more than 80% of its total assets represented by any three","page_number":55,"box":{"x":116,"y":125,"width":762,"height":13}},{"id":"b9f81f53-2522-45d8-903d-d9684d0ac35f","block_type":"box","text":"investments, and no more than 90% of its total assets represented by any four investments or (ii) the","page_number":55,"box":{"x":116,"y":141,"width":696,"height":13}},{"id":"35d8351b-b006-47b7-ae69-b0e95f13ddd9","block_type":"box","text":"segregated asset account must both (a) meet all the tax diversification requirements under Section 851(b)(3) of","page_number":55,"box":{"x":116,"y":156,"width":765,"height":13}},{"id":"52cc05a8-9d9f-4c1a-824a-ac1c9604de4f","block_type":"box","text":"the Internal Revenue Code (which are applicable to all regulated investment companies) and (b) have no more","page_number":55,"box":{"x":116,"y":172,"width":763,"height":13}},{"id":"41333313-d508-4b40-ada0-ba2dd1b7785e","block_type":"box","text":"than 55% of the value of its total assets be attributable to cash, cash items (including receivables),","page_number":55,"box":{"x":116,"y":187,"width":677,"height":13}},{"id":"8eb91c6c-2c1d-4a31-a1a2-957bd89514c2","block_type":"box","text":"Government securities or securities of other regulated investment companies. For purposes of the first test, all","page_number":55,"box":{"x":117,"y":203,"width":756,"height":13}},{"id":"bfff9461-b209-463f-854e-cac4f17552b1","block_type":"box","text":"securities of the same issuer are considered a single investment, but in the case of Government securities, each","page_number":55,"box":{"x":116,"y":218,"width":757,"height":13}},{"id":"4187d7e9-5441-4808-a338-d5cb54d4b895","block_type":"box","text":"Government agency or instrumentality is considered to be a separate issuer. An alternative test to establish","page_number":55,"box":{"x":117,"y":234,"width":736,"height":13}},{"id":"5b9c41ce-6eb0-45b1-8c7c-37a9a9e0ac84","block_type":"box","text":"diversification may be available under certain circumstances.","page_number":55,"box":{"x":116,"y":249,"width":419,"height":13}},{"id":"e6c95d8d-f352-49cf-9fe9-2e17916e1f89","block_type":"box","text":"Section 817(h) of the Internal Revenue Code provides a look-through rule for purposes of testing the","page_number":55,"box":{"x":116,"y":273,"width":698,"height":12}},{"id":"33d79451-ddbf-4373-b80b-4332fbf6073d","block_type":"box","text":"diversification of a segregated asset account that invests in a regulated investment company such as a","page_number":55,"box":{"x":116,"y":288,"width":699,"height":13}},{"id":"4cf7576a-b4e5-4c42-a9ae-acabcc20f99a","block_type":"box","text":"Portfolio. If the look-through rule applies, a beneficial interest in a regulated investment company will not be","page_number":55,"box":{"x":116,"y":304,"width":755,"height":12}},{"id":"0732f600-08bd-40b3-922f-0f486d90f351","block_type":"box","text":"treated as a single investment of a segregated asset account for purposes of the diversification requirements","page_number":55,"box":{"x":116,"y":319,"width":739,"height":13}},{"id":"bbdbceb9-bab0-412d-8b11-6d8b2cd8e951","block_type":"box","text":"described above; instead, a pro rata portion of each asset of the regulated investment company shall be treated","page_number":55,"box":{"x":116,"y":335,"width":765,"height":12}},{"id":"f9c12e5b-8e6a-484e-b07a-3a950bdfed03","block_type":"box","text":"as an asset of the segregated asset account. Treasury Regulations Section 1.817-5(f)(2) provides (except as","page_number":55,"box":{"x":116,"y":350,"width":733,"height":13}},{"id":"b0998bcd-f148-45fe-8602-211d59533092","block_type":"box","text":"otherwise permitted) that the look-through rule will apply to a regulated investment company only if (i) all the","page_number":55,"box":{"x":116,"y":366,"width":766,"height":12}},{"id":"3cbb0c9b-fb49-4df8-932f-821150f15189","block_type":"box","text":"beneficial interests in the regulated investment company are held by one or more segregated asset accounts of","page_number":55,"box":{"x":116,"y":381,"width":757,"height":13}},{"id":"d60445a8-770c-41cb-a60d-63b90562382c","block_type":"box","text":"one or more insurance companies and (ii) public access to such regulated investment company is available","page_number":55,"box":{"x":116,"y":397,"width":733,"height":12}},{"id":"a819804f-61fd-4d40-b973-3bbf8ebec200","block_type":"box","text":"exclusively through the purchase of a variable contract.","page_number":55,"box":{"x":116,"y":412,"width":383,"height":13}},{"id":"d2a87d6f-67c9-4c7c-b3f6-f35e0b8fe4ea","block_type":"box","text":"Failure by the Fund to satisfy the Section 817(h) requirements by failing to comply with the “55%-70%-80%-","page_number":55,"box":{"x":116,"y":435,"width":766,"height":13}},{"id":"e95c889b-e04b-49d8-a05f-abe0c382932e","block_type":"box","text":"90%” diversification test or the safe harbor described above could cause the variable contracts to lose their","page_number":55,"box":{"x":116,"y":451,"width":743,"height":10}},{"id":"bc913439-0959-47f9-8bfa-9c18a2a2ab88","block_type":"box","text":"favorable tax status and require a contract holder to i","page_number":55,"box":{"x":116,"y":466,"width":371,"height":13}},{"id":"a3c232ad-0c7c-418f-b5fd-8da711452b82","block_type":"box","text":"nclude in ordinary income any income accrued under the","page_number":55,"box":{"x":487,"y":466,"width":395,"height":13}},{"id":"20df1049-4d23-4ebd-95aa-dc9bac3207e8","block_type":"box","text":"contracts for the current and all prior taxable years. Under certain circumstances described in the applicable","page_number":55,"box":{"x":116,"y":482,"width":748,"height":13}},{"id":"e333b3a7-4529-4729-9a01-8ba4b6097aec","block_type":"box","text":"Treasury regulations, inadvertent failure to satisfy","page_number":55,"box":{"x":116,"y":497,"width":346,"height":13}},{"id":"2ccbb69d-80c5-432a-93b6-95a24070177f","block_type":"box","text":"the Section 817(h) diversification requirements may be","page_number":55,"box":{"x":466,"y":497,"width":379,"height":13}},{"id":"b3ae34e3-ee91-49e7-81c9-f7ddd24df3d3","block_type":"box","text":"corrected, but such a correction could require a payment to the IRS with respect to the period or periods","page_number":55,"box":{"x":116,"y":513,"width":724,"height":13}},{"id":"e7472d20-7c46-4ef3-bfbf-3b8b7187fe31","block_type":"box","text":"during which the investments of the account did not meet the diversification requirements. The amount of any","page_number":55,"box":{"x":116,"y":528,"width":765,"height":13}},{"id":"1c020cba-8d21-4427-bdb3-316cd76c662c","block_type":"box","text":"such payment could be based on the tax contract holders would have incurred if they were treated as receiving","page_number":55,"box":{"x":116,"y":544,"width":766,"height":13}},{"id":"c3301d0d-d6a9-4fc9-9669-0dde3e977819","block_type":"box","text":"the income on the contract for the period during which the diversification requirements were not satisfied.","page_number":55,"box":{"x":116,"y":559,"width":735,"height":13}},{"id":"8ae579e4-9c38-4e1e-9261-45f0a4c2f8b1","block_type":"box","text":"Any such failure could also result in adverse tax consequences for the Insurance Company issuing the","page_number":55,"box":{"x":116,"y":575,"width":702,"height":13}},{"id":"33021bea-0e5b-41a1-9ae1-3695a0def189","block_type":"box","text":"contracts.","page_number":55,"box":{"x":116,"y":593,"width":67,"height":7}},{"id":"2f505ede-b687-463a-87b7-94d7daabd72c","block_type":"box","text":"Investor Control Prohibitions","page_number":55,"box":{"x":136,"y":619,"width":213,"height":10}},{"id":"b8005771-c119-404f-a31e-dc037a9cd721","block_type":"box","text":"For a Contract to qualify for U.S. federal income tax deferral, it must avoid the prohibition on investor","page_number":55,"box":{"x":116,"y":645,"width":714,"height":12}},{"id":"81b32c4b-5a71-4265-9d46-a36a83b63087","block_type":"box","text":"control so that assets in the segregated asset accounts supporting the Contract are considered to be owned for","page_number":55,"box":{"x":116,"y":660,"width":760,"height":13}},{"id":"8e06f1c3-d434-41cb-aca8-fdbfd87e90e7","block_type":"box","text":"U.S. federal income tax purposes by the Insurance Company and not by the Contract holder. Accordingly, a","page_number":55,"box":{"x":116,"y":676,"width":750,"height":12}},{"id":"a5b468f9-c9bd-41f9-93cf-f402771c36d7","block_type":"box","text":"Contract holder should not have an impermissible level of control over a segregated asset account’s or a","page_number":55,"box":{"x":117,"y":691,"width":719,"height":13}},{"id":"2c32d956-fe57-43bb-9084-347a52168aa9","block_type":"box","text":"Portfolio’s investment in any particular asset. If the Contract holder were considered the owner of the","page_number":55,"box":{"x":116,"y":707,"width":704,"height":12}},{"id":"ccfedb0b-c5e3-4653-8d31-d8e970ea26d1","block_type":"box","text":"Portfolio shares for U.S. federal income tax purposes, income and gain earned from such Portfolio shares for","page_number":55,"box":{"x":116,"y":722,"width":753,"height":13}},{"id":"11acc284-2670-46d6-ba8e-5205526335b8","block_type":"box","text":"the current, future and prior taxable years w","page_number":55,"box":{"x":116,"y":738,"width":309,"height":12}},{"id":"42ba7426-3245-4948-a348-ad0a558ea71f","block_type":"box","text":"ould be taxable currently to the Contract holders.","page_number":55,"box":{"x":425,"y":738,"width":344,"height":12}},{"id":"85ff288e-2960-4ad2-adc9-de3972d819fd","block_type":"box","text":"The IRS may consider several factors in determining whether a contract holder has an impermissible level of","page_number":55,"box":{"x":116,"y":761,"width":750,"height":13}},{"id":"99620e3b-51cc-4bf7-bc7d-bb22c1dd4fca","block_type":"box","text":"investor control over a segregated asset account. One factor the IRS considers when a segregated asset account","page_number":55,"box":{"x":116,"y":776,"width":766,"height":13}},{"id":"1f59733c-11b6-4420-b3e1-90ef6d0ef85d","block_type":"box","text":"invests in one or more regulated investment companies is whether shares in the regulated investment","page_number":55,"box":{"x":116,"y":792,"width":695,"height":13}},{"id":"8fd67ac0-c50e-4050-ab58-988b13ac9417","block_type":"box","text":"companies are publicly available or whether such shares are available exclusively through the purchase of a","page_number":55,"box":{"x":116,"y":807,"width":743,"height":13}},{"id":"6a149d70-ebbe-46f1-86a2-0ee9720062e7","block_type":"box","text":"variable contract. Each Portfolio sells its shares directly to separate accounts established and maintained by","page_number":55,"box":{"x":116,"y":823,"width":742,"height":13}},{"id":"6ffb5a32-1696-40d2-b0ca-845cdce41208","block_type":"box","text":"insurance companies for the purpose of funding variable annuity and variable life insurance contracts and to","page_number":55,"box":{"x":116,"y":838,"width":752,"height":13}},{"id":"9c7b798a-430f-4f59-a33d-09fcd494d871","block_type":"box","text":"certain qualified pension and retirement plans, or to other regulated investment companies meeting such","page_number":55,"box":{"x":116,"y":854,"width":723,"height":13}},{"id":"3a10f2d8-d2cb-496d-b61d-4603afae20bb","block_type":"box","text":"requirements, and not to other categories of shareholders.","page_number":55,"box":{"x":116,"y":869,"width":400,"height":13}},{"id":"66e8f7a3-c881-4749-b48f-224b1c2dca99","block_type":"box","text":"I-38","page_number":55,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"62c4431b-ec8d-4c4b-9c82-a34bad44ab5f","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":55,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"134c24a6-0cdf-4be1-837b-bbbbf7d5631a","block_type":"box","text":"A second factor the IRS considers when a segregated asset account invests in one or more regulated","page_number":56,"box":{"x":116,"y":79,"width":688,"height":13}},{"id":"010109e1-df70-4576-90d8-cd18a83d4494","block_type":"box","text":"investment companies is whether a regulated investment company’s investment strategies are sufficiently","page_number":56,"box":{"x":116,"y":94,"width":723,"height":13}},{"id":"ebcb635b-ce6c-4857-a806-1cb6a725bf51","block_type":"box","text":"broad and general (such as stocks, bonds or money market instruments) to prevent a Contract holder from","page_number":56,"box":{"x":116,"y":110,"width":741,"height":13}},{"id":"79d83ad1-20dc-497a-b5f5-3ea09246016b","block_type":"box","text":"being deemed to be making particular investment decisions through its investment in the segregated asset","page_number":56,"box":{"x":116,"y":125,"width":727,"height":13}},{"id":"297fe67a-c656-4c78-9102-f9b40124d520","block_type":"box","text":"account. Under current IRS guidance, the investment strategies of each Portfolio are expected to be sufficiently","page_number":56,"box":{"x":116,"y":141,"width":766,"height":13}},{"id":"ebf9182f-4f76-4d9b-a45a-362e61460ebf","block_type":"box","text":"broad to satisfy this factor and prevent a Contract holder from being deemed to be making particular","page_number":56,"box":{"x":116,"y":156,"width":703,"height":13}},{"id":"be122829-3c8b-47b8-acb1-5def09cf2785","block_type":"box","text":"investment decisions through its investment in the segregated asset account.","page_number":56,"box":{"x":116,"y":172,"width":522,"height":13}},{"id":"ffac9c66-e2de-47c3-8221-0819f1f83e81","block_type":"box","text":"Each Portfolio intends (1) to comply with the requirem","page_number":56,"box":{"x":116,"y":196,"width":381,"height":12}},{"id":"e564aa1b-ed7c-4381-90f0-4a73532555b6","block_type":"box","text":"ents necessary to allow a segregated asset account that","page_number":56,"box":{"x":498,"y":196,"width":376,"height":12}},{"id":"b165362b-1057-471b-868e-6017436eff51","block_type":"box","text":"invests in the Portfolio to look-through to the Portfolio’s investments for purposes of satisfying the asset","page_number":56,"box":{"x":116,"y":211,"width":720,"height":13}},{"id":"ac78fb4f-1732-40ac-88b7-efedc447cbd2","block_type":"box","text":"diversification requirements of Section 817(h) of the Code, (2) to comply with such asset diversification","page_number":56,"box":{"x":116,"y":227,"width":717,"height":12}},{"id":"ea74aa49-2b80-4485-9fc9-7eed6cf59428","block_type":"box","text":"requirements necessary to prevent the Contract holders","page_number":56,"box":{"x":116,"y":242,"width":382,"height":13}},{"id":"38bef8e5-7019-45ed-ad0d-fcf970320554","block_type":"box","text":"from losing their special tax treatment because of","page_number":56,"box":{"x":503,"y":242,"width":342,"height":13}},{"id":"661934e4-372a-46e3-85d5-d5ace3344720","block_type":"box","text":"investments in the Portfolio, and (3) to comply with","page_number":56,"box":{"x":116,"y":258,"width":360,"height":12}},{"id":"6aff7009-8474-4cbb-a6f9-c96051e862f6","block_type":"box","text":"the requirements necessary to prevent the Contract","page_number":56,"box":{"x":480,"y":258,"width":353,"height":12}},{"id":"134f27b8-7b06-47c4-a4f8-af01f6b63c29","block_type":"box","text":"holders from having an impermissible level of control over the Portfolio’s assets.","page_number":56,"box":{"x":116,"y":273,"width":555,"height":13}},{"id":"51ea9b94-0e68-4e9c-9647-265c3f5b8e8e","block_type":"box","text":"In the event that additional rules, regulations or other guidance is issued by the IRS or the Treasury","page_number":56,"box":{"x":116,"y":297,"width":688,"height":13}},{"id":"83e65204-cbfa-4494-b8b9-e2d90119e130","block_type":"box","text":"Department concerning this issue, such guidance could affect the treatment of the Fund as described above,","page_number":56,"box":{"x":116,"y":312,"width":743,"height":13}},{"id":"b3847565-e220-42fc-983e-597c71e0ecc4","block_type":"box","text":"including retroactively. In addition, there can be no assurance that the Fund will be able to continue to","page_number":56,"box":{"x":116,"y":328,"width":711,"height":13}},{"id":"8c978581-6434-4a71-86ca-b3ed38582d6b","block_type":"box","text":"operate as currently described, or that the Fund will not have to change its investment objective or investment","page_number":56,"box":{"x":116,"y":343,"width":760,"height":13}},{"id":"dfbe2eee-4f77-43bb-beb0-9d7e2a865bb7","block_type":"box","text":"policies in order to prevent, on a prospective basis, any such rules and regulations from causing variable","page_number":56,"box":{"x":116,"y":359,"width":720,"height":13}},{"id":"3bc1caee-c71b-48eb-958f-0accef0e3f16","block_type":"box","text":"contract owners to be considered the owners of the shares of the Fund.","page_number":56,"box":{"x":116,"y":374,"width":490,"height":10}},{"id":"685a11a2-cddf-43e8-b6c6-d6d2338899af","block_type":"box","text":"Tax Treatment to Insurance Companies","page_number":56,"box":{"x":136,"y":404,"width":291,"height":12}},{"id":"d98dd155-0ba5-493d-83ea-2447a3acbcea","block_type":"box","text":"Dividends paid by a Portfolio may be included in the respective Insurance Company’s gross income. The tax","page_number":56,"box":{"x":116,"y":430,"width":751,"height":13}},{"id":"ad0cc3a9-350b-4bf4-8616-f1ce0c6420a8","block_type":"box","text":"treatment of these dividends depends on the Insurance","page_number":56,"box":{"x":116,"y":445,"width":376,"height":13}},{"id":"a4926e46-3790-4af7-b330-52eb860bab7b","block_type":"box","text":"Company’s tax status. A description of an Insurance","page_number":56,"box":{"x":497,"y":445,"width":363,"height":13}},{"id":"411ce81e-228a-4495-afa9-88dd4c823769","block_type":"box","text":"Company’s tax status is contained in the prospectus for the Contract.","page_number":56,"box":{"x":117,"y":461,"width":479,"height":13}},{"id":"4f39d5e3-1d4a-4b7c-b001-c66dcbc3c44e","block_type":"box","text":"Dividends and interest received by a Portfolio and capital gains recognized by a Portfolio may give rise to","page_number":56,"box":{"x":116,"y":485,"width":729,"height":12}},{"id":"37a57331-b7f8-4c27-9de5-1adfb186ea86","block_type":"box","text":"withholding and other taxes imposed by foreign count","page_number":56,"box":{"x":116,"y":500,"width":377,"height":13}},{"id":"2cb56478-8398-41e6-b333-d9fdd6249102","block_type":"box","text":"ries. Tax conventions between certain countries and the","page_number":56,"box":{"x":494,"y":500,"width":385,"height":10}},{"id":"9aa59b0e-e621-45bd-a6ac-0ec5114dfee6","block_type":"box","text":"United States may reduce or eliminate such taxes. As a shareholder in a Portfolio, an Insurance Company may","page_number":56,"box":{"x":116,"y":516,"width":764,"height":12}},{"id":"9e617d00-94fa-4531-8b94-82e9c766ac4f","block_type":"box","text":"be able to claim a credit or take a deduction for foreign taxes paid by the Portfolio if certain requirements are","page_number":56,"box":{"x":116,"y":531,"width":758,"height":13}},{"id":"8ce1a65e-b6f3-4313-a18f-aa4a575db83a","block_type":"box","text":"met.","page_number":56,"box":{"x":116,"y":549,"width":29,"height":8}},{"id":"dd8556aa-951c-4476-bdeb-030bacfb4d1b","block_type":"box","text":"This section summarizes some of the consequences under current federal tax law of an investment in a","page_number":56,"box":{"x":116,"y":570,"width":709,"height":13}},{"id":"ae352f80-cd19-47ad-b162-80b91df20846","block_type":"box","text":"Portfolio. It is not a substitute for individualized tax advice. Consult your tax adviser about the potential tax","page_number":56,"box":{"x":116,"y":586,"width":752,"height":13}},{"id":"957ba121-6aec-416d-94f8-c846255a9a9e","block_type":"box","text":"consequences of an investment in a Portfolio under all applicable tax laws.","page_number":56,"box":{"x":116,"y":601,"width":516,"height":13}},{"id":"442140da-0f3e-4339-9b68-12b0ef09625a","block_type":"box","text":"X. Additional Information","page_number":56,"box":{"x":116,"y":630,"width":237,"height":10}},{"id":"ce76937b-23a4-49fa-948a-39cf3bcff863","block_type":"box","text":"Organization of the Fund","page_number":56,"box":{"x":137,"y":657,"width":184,"height":13}},{"id":"b5b699c7-d197-41c3-bc57-ba086a1b343d","block_type":"box","text":"The Fund was incorporated under the laws of the State of Maryland on September 4, 1980 as the Merrill","page_number":56,"box":{"x":116,"y":683,"width":730,"height":13}},{"id":"e6bdbae0-a28f-4c7b-b1be-ce25d688fd68","block_type":"box","text":"Lynch Investment Series Fund, Inc. On January 16, 1981, the Fund changed its name to Merrill Lynch Series","page_number":56,"box":{"x":116,"y":699,"width":753,"height":13}},{"id":"7a29a558-beee-4615-acbc-04d2d9422029","block_type":"box","text":"Fund, Inc. and on or about May 1, 2005, the Fund changed its name to FAM Series Fund, Inc. and effective","page_number":56,"box":{"x":116,"y":714,"width":748,"height":13}},{"id":"d1787e6d-5613-4156-8185-c442e9b74e1d","block_type":"box","text":"September 29, 2006 to BlackRock Series Fund, Inc. The authorized capital stock of the Fund consists of","page_number":56,"box":{"x":116,"y":730,"width":721,"height":13}},{"id":"93398510-bfa4-4474-88ef-7ca5ff9820f2","block_type":"box","text":"4,640,000,000 shares of Common Stock, par value $0.10 per share. The shares of Common Stock are divided","page_number":56,"box":{"x":116,"y":745,"width":764,"height":13}},{"id":"76b5e3b6-60b0-4410-9800-e570e107d398","block_type":"box","text":"into five classes: Advantage Large Cap Core Portfolio","page_number":56,"box":{"x":116,"y":761,"width":371,"height":13}},{"id":"2ea25f42-f7c2-47ca-aa4f-6c12194bb1d5","block_type":"box","text":"Common Stock, Balanced Portfolio Common Stock,","page_number":56,"box":{"x":493,"y":761,"width":363,"height":12}},{"id":"e8a40596-0ec3-4d14-90df-1e52f430d55c","block_type":"box","text":"Capital Appreciation Portfolio Common Stock, Globa","page_number":56,"box":{"x":117,"y":776,"width":376,"height":13}},{"id":"6db8d6bc-202e-481b-9575-cd3e541279d6","block_type":"box","text":"l Allocation Portfolio Common Stock, and Government","page_number":56,"box":{"x":493,"y":776,"width":387,"height":13}},{"id":"25fed261-49c9-4009-a823-2d0c161b942b","block_type":"box","text":"Money Market Portfolio Common Stock. 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No other","page_number":59,"box":{"x":116,"y":136,"width":752,"height":12}},{"id":"a544429e-472d-4b82-ab45-f057132154bd","block_type":"box","text":"parts of the 2025 Annual Financial Statements are incorporated by reference herein. The 2025 Annual","page_number":59,"box":{"x":116,"y":151,"width":710,"height":13}},{"id":"cf1e7c1e-db6b-4b20-b12b-f5b4cd660e61","block_type":"box","text":"Financial Statements have been audited by Deloitte & Touche LLP. The report of Deloitte & Touche LLP is","page_number":59,"box":{"x":116,"y":167,"width":749,"height":12}},{"id":"a27b5084-c074-4de1-8023-abe1cf3d7159","block_type":"box","text":"incorporated herein by reference. Such 2025 Annual Financi","page_number":59,"box":{"x":116,"y":182,"width":418,"height":13}},{"id":"3b702df4-5ff7-4188-b94a-ae6fdc2b519d","block_type":"box","text":"al Statements have been incorporated herein in","page_number":59,"box":{"x":535,"y":182,"width":324,"height":13}},{"id":"1092a1f2-8116-4540-b06f-504d2f20257c","block_type":"box","text":"reliance upon the report of such firm given their authority as experts in accounting and auditing. 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In each jurisdiction, nomenclature vari","page_number":60,"box":{"x":116,"y":208,"width":384,"height":12}},{"id":"f813a2cd-6c58-40d7-82b9-e0fbc70990b0","block_type":"box","text":"es. For ease and clarity of presentation, shares of","page_number":60,"box":{"x":501,"y":208,"width":365,"height":12}},{"id":"53839b57-a693-44e8-899c-e6880e5bf7aa","block_type":"box","text":"common stock and shares of beneficial interest are re","page_number":60,"box":{"x":116,"y":224,"width":390,"height":9}},{"id":"1ab74633-7b8f-4a21-b14a-7bed8be509a9","block_type":"box","text":"ferred to herein as “shares” or “Common Stock,”","page_number":60,"box":{"x":507,"y":224,"width":355,"height":11}},{"id":"beb3e0f0-f3c2-47c7-bd3d-b92824f6d716","block_type":"box","text":"holders of shares of Common Stock are referred to","page_number":60,"box":{"x":117,"y":239,"width":374,"height":10}},{"id":"a3afe3df-d3a9-4d9b-9988-df897e7f6835","block_type":"box","text":"as “shareholders,” the trustees or directors of each","page_number":60,"box":{"x":492,"y":239,"width":372,"height":12}},{"id":"411ecdd6-f6f6-4a22-8c0d-d61414d7e92d","block_type":"box","text":"Fund are referred to as “Directors,” the boards of tru","page_number":60,"box":{"x":117,"y":255,"width":376,"height":11}},{"id":"1128c03b-9b55-4e8b-9553-5a0992eb1a9b","block_type":"box","text":"stees/directors of each Fund are referred to as the","page_number":60,"box":{"x":495,"y":255,"width":370,"height":10}},{"id":"c3bd2d7b-2e24-4586-88bb-5c6d77396ebb","block_type":"box","text":"“Board of Directors” or the “Board,” BlackRock A","page_number":60,"box":{"x":116,"y":270,"width":341,"height":12}},{"id":"b5d82257-90b4-40ba-a558-36ac9c57ca01","block_type":"box","text":"Advisors, LLC, BlackRock Fund Advisors or their","page_number":60,"box":{"x":457,"y":270,"width":360,"height":12}},{"id":"bafecf42-beb6-4160-a9f4-601a7116365e","block_type":"box","text":"respective affiliates is the investment adviser or","page_number":60,"box":{"x":117,"y":286,"width":343,"height":12}},{"id":"a4616a20-4f33-4947-86d1-3cb41b8f7a71","block_type":"box","text":"r manager of each Fund and is referred to herein as the","page_number":60,"box":{"x":460,"y":286,"width":404,"height":12}},{"id":"8e30f913-a445-462a-b4c1-28862c3a8933","block_type":"box","text":"“Manager” or “BlackRock,” and the investment","page_number":60,"box":{"x":116,"y":301,"width":337,"height":12}},{"id":"e1d6e61e-cffd-45e3-a698-a08fcc95f582","block_type":"box","text":"advisory agreement or","page_number":60,"box":{"x":453,"y":301,"width":169,"height":12}},{"id":"250da2ee-3413-46cf-9320-065fd1a2899b","block_type":"box","text":"r management agreement","page_number":60,"box":{"x":621,"y":302,"width":190,"height":11}},{"id":"77c02655-ba3b-48d8-a033-75cb8ff9bda3","block_type":"box","text":"applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s Articles of","page_number":60,"box":{"x":116,"y":317,"width":700,"height":12}},{"id":"0e602a39-046e-46da-9533-a667fa6e8897","block_type":"box","text":"Incorporation or Declaration of Tr","page_number":60,"box":{"x":117,"y":332,"width":240,"height":12}},{"id":"dc8708fd-5a31-419e-ba4e-96abaadf0b12","block_type":"box","text":"ust, together with all amendments thereto,","page_number":60,"box":{"x":358,"y":332,"width":304,"height":12}},{"id":"47be6abc-a741-4d51-9a29-e2482594c2e0","block_type":"box","text":"is referred to as its “charter.”","page_number":60,"box":{"x":664,"y":332,"width":215,"height":10}},{"id":"53a8cd70-3ef4-4831-8956-5175a77038b6","block_type":"box","text":"The Investment Company Act of 1940, as amended, is","page_number":60,"box":{"x":116,"y":348,"width":402,"height":12}},{"id":"f4273853-aa32-4a0a-b024-aed7960f447b","block_type":"box","text":"referred to herein as the “Investment Company","page_number":60,"box":{"x":519,"y":348,"width":345,"height":12}},{"id":"b34c306c-da2e-4e3c-81ee-f4e0175e98a4","block_type":"box","text":"Act.” The Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities","page_number":60,"box":{"x":116,"y":363,"width":767,"height":12}},{"id":"d937200b-86de-4e61-b668-cd42d660b77a","block_type":"box","text":"and Exchange Commission is referred to herein as the “Commission” or the “SEC.”","page_number":60,"box":{"x":116,"y":379,"width":609,"height":12}},{"id":"6a771fbd-ac45-476e-989c-454039477b64","block_type":"box","text":"Certain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a portion of their assets in a","page_number":60,"box":{"x":117,"y":405,"width":765,"height":12}},{"id":"5bbbec1a-53b8-453e-8d2b-f6feee9eaab4","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each,","page_number":60,"box":{"x":116,"y":420,"width":770,"height":12}},{"id":"dbd33b02-a825-4c60-83c7-99975593a713","block_type":"box","text":"a “Master LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. All","page_number":60,"box":{"x":116,"y":436,"width":734,"height":12}},{"id":"f5f7647c-dc29-468d-8ccc-9cb4d2d810bf","block_type":"box","text":"investments are generally made at the level of the Master Portfolio. This structure is sometimes called","page_number":60,"box":{"x":117,"y":451,"width":761,"height":12}},{"id":"f6201a24-5216-43a5-b098-6ebc8738f727","block_type":"box","text":"a “master/feeder” structure. A Feeder Fund’s investment results will correspond directly to the","page_number":60,"box":{"x":116,"y":467,"width":700,"height":12}},{"id":"1b6ed06b-ed72-42cb-a04f-7ac2d5a78ff2","block_type":"box","text":"investment results of the underlying Master Portfolio in which it invests. For simplicity, this SAI uses the","page_number":60,"box":{"x":117,"y":482,"width":770,"height":12}},{"id":"03112cf5-fb54-4b46-b1d6-b7f155b48c78","block_type":"box","text":"term “Fund” to include both a Feeder Fund and its Master Portfolio.","page_number":60,"box":{"x":116,"y":498,"width":503,"height":9}},{"id":"4f0cc72f-0da8-4abf-9c0d-f7860ba44db6","block_type":"box","text":"In addition to containing information about the Funds, Part II of this SAI contains general information","page_number":60,"box":{"x":117,"y":523,"width":747,"height":13}},{"id":"917ec0f5-2cca-4d16-82de-9627fe7fd163","block_type":"box","text":"about all funds in the BlackRock-advised fund complex. Certain information contained herein may not","page_number":60,"box":{"x":116,"y":539,"width":757,"height":12}},{"id":"f5c43682-0fa4-45ab-b036-f791e8fd3338","block_type":"box","text":"be relevant to a particular Fund.","page_number":60,"box":{"x":117,"y":555,"width":241,"height":11}},{"id":"b02d55b8-cbea-46fb-8177-9aa328c7273b","block_type":"box","text":"Investment Risks and Considerations","page_number":60,"box":{"x":119,"y":595,"width":675,"height":23}},{"id":"a77af98c-8724-4de3-9331-cbb9bcfd8a6a","block_type":"box","text":"Set forth below are descriptions of some of the types of investments and investment strategies that one","page_number":60,"box":{"x":116,"y":634,"width":772,"height":13}},{"id":"eda2c84d-1278-44e3-9811-4b7c0f57c250","block_type":"box","text":"or more of the Funds may use, and the risks and considerations associated with those investments","page_number":60,"box":{"x":116,"y":650,"width":740,"height":12}},{"id":"a8a93634-f406-49bd-a5f7-d2870601190a","block_type":"box","text":"and investment strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the","page_number":60,"box":{"x":116,"y":665,"width":685,"height":13}},{"id":"9dbaa616-f2af-4ecb-b867-400ee66769ac","block_type":"box","text":"“Investment Objective and Policies,” “Investment Objectives and Policies” or “Investment Strategies","page_number":60,"box":{"x":116,"y":681,"width":737,"height":12}},{"id":"71842544-97d2-4594-b5d2-5c9737388a7f","block_type":"box","text":"and Risks of the Fund” section, as applicable, of Part I of this SAI for further information on each","page_number":60,"box":{"x":116,"y":696,"width":714,"height":12}},{"id":"37e90e7c-e83c-4d8b-90a0-458a8ae6f660","block_type":"box","text":"Fund’s investment policies and risks. Information contained in this section about the risks and","page_number":60,"box":{"x":117,"y":712,"width":692,"height":12}},{"id":"66ad3585-0ae4-41bb-a540-daf530ccf08d","block_type":"box","text":"considerations associated with a Fund’s investments and/or investment strategies applies only to those","page_number":60,"box":{"x":116,"y":728,"width":765,"height":12}},{"id":"91208071-658d-435a-a5c3-f93aa0643999","block_type":"box","text":"Funds specifically identified in Part I of this SAI as making each type of investment or using each","page_number":60,"box":{"x":117,"y":743,"width":716,"height":12}},{"id":"c2049920-86e4-4633-8687-f54885f4d48b","block_type":"box","text":"investment strategy (each, a “Covered Fund”). Information that does not apply to a Covered Fund does","page_number":60,"box":{"x":117,"y":758,"width":764,"height":13}},{"id":"8401e014-4097-486f-a260-34078faeb6ca","block_type":"box","text":"not form a part of that Covered Fund’s SAI and should not be relied on by investors in that Covered","page_number":60,"box":{"x":117,"y":774,"width":735,"height":12}},{"id":"1ec5919c-6e5d-4689-af52-02cb49b1109e","block_type":"box","text":"Fund. Only information that is clearly identified as applicable to a Covered Fund is considered to form a","page_number":60,"box":{"x":117,"y":789,"width":765,"height":13}},{"id":"e2933f42-155e-4557-b00c-557ab2f4f43e","block_type":"box","text":"part of that Covered Fund’s SAI.","page_number":60,"box":{"x":117,"y":805,"width":238,"height":12}},{"id":"3e7a8da4-0980-4b28-be74-43db23795991","block_type":"box","text":"Asset-Backed Securities.","page_number":60,"box":{"x":116,"y":831,"width":200,"height":9}},{"id":"019f4cf9-7539-4a05-ab24-48b341f58814","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans,","page_number":60,"box":{"x":317,"y":831,"width":519,"height":12}},{"id":"d3bb4f14-0fbe-42c9-ab39-4834442caa92","block_type":"box","text":"installment sale contracts, credit card receivables or other assets. Asset-backed securities are “pass","page_number":60,"box":{"x":117,"y":846,"width":749,"height":12}},{"id":"a88a9909-d7e1-4c8c-842c-54b1e411d1af","block_type":"box","text":"through” securities, meaning that principal and interest payments — net of expenses — made by the","page_number":60,"box":{"x":116,"y":862,"width":751,"height":12}},{"id":"604503eb-0a8c-497c-a98b-b5925614bd01","block_type":"box","text":"borrower on the underlying assets (such as credit card receivables) are passed through to a Fund. The","page_number":60,"box":{"x":117,"y":877,"width":768,"height":12}},{"id":"e654b99f-dc54-48b3-841c-4f2f4668af69","block_type":"box","text":"II-1","page_number":60,"box":{"x":489,"y":909,"width":20,"height":9}},{"id":"589e0d52-d270-4527-99b5-111f3cb24282","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":60,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"53fa5413-ebb1-4daa-a5d7-2cd9fc3b480c","block_type":"box","text":"value of asset-backed securities, like that of traditional fixed-income securities, typically increases","page_number":61,"box":{"x":116,"y":87,"width":729,"height":12}},{"id":"52808b01-c73b-43bf-b16a-a4598a5f64d3","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, asset-backed securities differ","page_number":61,"box":{"x":116,"y":102,"width":770,"height":12}},{"id":"64295cda-4584-4200-a5e5-1a1c21d73364","block_type":"box","text":"from traditional fixed-income securities because of their potential for prepayment. The price paid by a","page_number":61,"box":{"x":116,"y":118,"width":755,"height":12}},{"id":"d59e57b7-e1ed-4339-9741-07ffb9a31579","block_type":"box","text":"Fund for its asset-backed securities, the yield the Fund expects to receive from such securities and the","page_number":61,"box":{"x":117,"y":134,"width":767,"height":12}},{"id":"60f3b5cd-c819-486e-87dd-15695790f27e","block_type":"box","text":"average life of the securities are based on a number of factors, including the anticipated rate of","page_number":61,"box":{"x":116,"y":149,"width":709,"height":12}},{"id":"54c53aaa-9196-46b2-84bd-4a55ed6fb29c","block_type":"box","text":"prepayment of the underlying assets. In a period of declining interest rates, borrowers may prepay the","page_number":61,"box":{"x":117,"y":165,"width":761,"height":12}},{"id":"fc96c191-35ec-4a11-add3-75dd3f2c360b","block_type":"box","text":"underlying assets more quickly than anticipated, thereby reducing the yield to maturity and the average","page_number":61,"box":{"x":117,"y":180,"width":769,"height":12}},{"id":"9b31bc41-11f9-4f9e-a744-38be0292e358","block_type":"box","text":"life of the asset-backed securities. Moreover, when a Fund reinvests the proceeds of a prepayment in","page_number":61,"box":{"x":117,"y":196,"width":758,"height":12}},{"id":"3a1f54c3-ac0c-4392-beb3-b3811192dfb0","block_type":"box","text":"these circumstances, it will likely receive a rate of interest that is lower than the rate on the security that","page_number":61,"box":{"x":116,"y":211,"width":772,"height":12}},{"id":"096a36f2-ff25-47c7-850e-8d6737ba5126","block_type":"box","text":"was prepaid. To the extent that a Fund purchases asset-backed securities at a premium, prepayments","page_number":61,"box":{"x":116,"y":227,"width":765,"height":12}},{"id":"0b135450-1d97-4a76-bae8-ab4d48dfac81","block_type":"box","text":"may result in a loss to the extent of the premium paid. If a Fund buys such securities at a discount,","page_number":61,"box":{"x":117,"y":242,"width":736,"height":12}},{"id":"fd8faa4e-6626-4267-a843-76a9c4a99538","block_type":"box","text":"both scheduled payments and unscheduled prepayments will increase current and total returns and","page_number":61,"box":{"x":117,"y":258,"width":742,"height":12}},{"id":"22077bbb-b3e7-4217-b600-21c1c70be2e9","block_type":"box","text":"unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":61,"box":{"x":117,"y":273,"width":738,"height":12}},{"id":"472aaae1-ef8d-4e9a-8ef3-cf44489ff692","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the","page_number":61,"box":{"x":116,"y":289,"width":772,"height":12}},{"id":"56ae2163-b67b-47f0-94b7-92958d82da9f","block_type":"box","text":"underlying assets may occur at a slower than expected rate, creating maturity extension risk. This","page_number":61,"box":{"x":117,"y":304,"width":730,"height":12}},{"id":"0ea27d7a-c5a5-4bb8-8c8b-86ecce297928","block_type":"box","text":"particular risk may effectively change a security that was considered short- or intermediate-term at the","page_number":61,"box":{"x":117,"y":320,"width":762,"height":12}},{"id":"c6bb8141-b6f7-4cb1-8026-01ebe0f08bd8","block_type":"box","text":"time of purchase into a longer term security. Since the value of longer-term securities generally","page_number":61,"box":{"x":116,"y":335,"width":710,"height":12}},{"id":"9869897f-5336-4312-82bb-294cf7310419","block_type":"box","text":"fluctuates more widely in response to changes in interest rates than does the value of shorter-term","page_number":61,"box":{"x":116,"y":351,"width":736,"height":12}},{"id":"a7453c4f-7aa2-4078-aa25-1d19943a9383","block_type":"box","text":"securities, maturity extension risk could increase the volatility of the Fund. When interest rates decline,","page_number":61,"box":{"x":116,"y":366,"width":766,"height":12}},{"id":"67bb82d9-cca3-47cb-b085-c2f580cdbf0e","block_type":"box","text":"the value of an asset-backed security with prepayment features may not increase as much as that of","page_number":61,"box":{"x":116,"y":382,"width":751,"height":12}},{"id":"68cc60b9-d3ce-4b44-adf9-21d0bd9f0787","block_type":"box","text":"other fixed-income securities, and, as noted above, changes in market rates of interest may accelerate","page_number":61,"box":{"x":116,"y":397,"width":767,"height":12}},{"id":"f5e5519b-ed4b-4bf4-aaed-fd3b4db65ef5","block_type":"box","text":"or retard prepayments and thus affect maturities.","page_number":61,"box":{"x":116,"y":413,"width":368,"height":12}},{"id":"560342b4-dbf8-4fe8-9dcc-1eda62e99efc","block_type":"box","text":"Asset-Based Securities.","page_number":61,"box":{"x":116,"y":444,"width":190,"height":9}},{"id":"0550c8ae-2351-4f3c-a7c2-d9e72654c4ea","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the","page_number":61,"box":{"x":307,"y":444,"width":548,"height":12}},{"id":"8d6058c1-eaf2-432e-9a5a-f290f0ad52f1","block_type":"box","text":"principal amount, redemption terms or conversion terms of which are related to the market price of","page_number":61,"box":{"x":117,"y":459,"width":734,"height":12}},{"id":"395c4cf7-dd0a-4ca2-9ed1-58d80d0d0123","block_type":"box","text":"some natural resource asset such as gold bullion. These securities are referred to as “asset-based","page_number":61,"box":{"x":116,"y":475,"width":737,"height":12}},{"id":"288b1620-da7e-40c5-bf22-7e5b09cb1715","block_type":"box","text":"securities.” A Fund will purchase only asset-based securities that are rated, or are issued by issuers","page_number":61,"box":{"x":116,"y":490,"width":746,"height":12}},{"id":"f0adf227-af30-44f6-9407-2f0da7285688","block_type":"box","text":"that have outstanding debt obligations rated, investment grade (for example, AAA, AA, A or BBB by","page_number":61,"box":{"x":116,"y":506,"width":744,"height":12}},{"id":"3de79f36-61ef-47e5-a00b-4e1721a37453","block_type":"box","text":"S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), or Baa by Moody’s Investors Service, Inc.","page_number":61,"box":{"x":116,"y":521,"width":719,"height":12}},{"id":"a4e07ee7-54f8-4d3b-ae70-2d0477c365b6","block_type":"box","text":"(“Moody’s”) or commercial paper rated A-1 by S&P or Prime-1 by Moody’s) or by issuers that the","page_number":61,"box":{"x":117,"y":537,"width":721,"height":12}},{"id":"fa228528-3d93-4597-b36a-0fc26209364d","block_type":"box","text":"Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":61,"box":{"x":117,"y":552,"width":733,"height":12}},{"id":"43b3d66a-18db-4a14-ab36-264044278bb0","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and","page_number":61,"box":{"x":117,"y":568,"width":766,"height":12}},{"id":"47f38cbf-13ff-4625-a4e4-2ca2138a38de","block_type":"box","text":"may be more likely to be downgraded than securities rated in the three highest rating categories. If an","page_number":61,"box":{"x":117,"y":583,"width":759,"height":12}},{"id":"991bbe6a-d8f6-4e56-868d-0f9f217c87ee","block_type":"box","text":"asset-based security is backed by a bank letter of credit or other similar facility, the Manager may take","page_number":61,"box":{"x":116,"y":599,"width":764,"height":12}},{"id":"60240dcb-1ce3-4c1e-9908-e2eaf571849a","block_type":"box","text":"such backing into account in determining the creditworthiness of the issuer. While the market prices for","page_number":61,"box":{"x":116,"y":614,"width":769,"height":12}},{"id":"389383f6-dd7a-4273-b5fb-3a00e1a10b14","block_type":"box","text":"an asset-based security and the related natural resource asset generally are expected to move in the","page_number":61,"box":{"x":116,"y":630,"width":756,"height":12}},{"id":"6e90ee87-4086-4030-a6af-0b7371659af7","block_type":"box","text":"same direction, there may not be perfect correlation in the two price movements. Asset-based","page_number":61,"box":{"x":116,"y":645,"width":702,"height":12}},{"id":"f9855bd0-b276-4789-9260-27db119ab11f","block_type":"box","text":"securities may not be secured by a security interest in or claim on the underlying natural resource","page_number":61,"box":{"x":116,"y":661,"width":723,"height":12}},{"id":"b033a16b-8a1a-4a2a-af56-213eeb55509a","block_type":"box","text":"asset. The asset-based securities in which a Fund may invest may bear interest or pay preferred","page_number":61,"box":{"x":116,"y":676,"width":716,"height":12}},{"id":"618eed1a-ff6b-4ddc-bc39-4ae70d831e68","block_type":"box","text":"dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be","page_number":61,"box":{"x":116,"y":692,"width":738,"height":12}},{"id":"ae86df95-7d6d-46f1-80c8-29c27d2ff48b","block_type":"box","text":"payable at maturity in cash at the stated principal amount or, at the option of the holder, directly in a","page_number":61,"box":{"x":117,"y":707,"width":738,"height":12}},{"id":"274ad33e-17e1-4d36-8e73-58f093bfa735","block_type":"box","text":"stated amount of the asset to which it is related. In such instance, because no Fund presently intends","page_number":61,"box":{"x":116,"y":723,"width":753,"height":12}},{"id":"3154fb23-21bf-4b62-9be1-08a97a249443","block_type":"box","text":"to invest directly in natural resource assets, a Fund would sell the asset-based security in the","page_number":61,"box":{"x":116,"y":738,"width":691,"height":12}},{"id":"b3a48f86-f324-401e-a7d7-7f09dff32d4c","block_type":"box","text":"secondary market, to the extent one exists, prior to maturity if the value of the stated amount of the","page_number":61,"box":{"x":116,"y":754,"width":733,"height":12}},{"id":"4198a3a9-09ff-47f0-aacd-b2373363cb13","block_type":"box","text":"asset exceeds the stated principal amount and thereby realize the appreciation in the underlying asset.","page_number":61,"box":{"x":116,"y":769,"width":763,"height":12}},{"id":"344e7c41-7060-43af-bc8e-3cfd6822ca7f","block_type":"box","text":"Precious Metal-Related Securities.","page_number":61,"box":{"x":116,"y":800,"width":256,"height":10}},{"id":"2e583447-5420-413c-b76b-201ce5a0229b","block_type":"box","text":"A Fund may invest in the equity and other securities of companies","page_number":61,"box":{"x":378,"y":800,"width":491,"height":12}},{"id":"e3ae8350-2bda-4d0e-bfa2-2adc21eb0eda","block_type":"box","text":"that explore for, extract, process or deal in precious metals (","page_number":61,"box":{"x":116,"y":816,"width":447,"height":12}},{"id":"01225dca-773b-46bd-b83c-12a6dfdcf74c","block_type":"box","text":"e.g.","page_number":61,"box":{"x":564,"y":818,"width":26,"height":10}},{"id":"87e9fc78-6154-4b6d-aded-50e3a8a6b499","block_type":"box","text":", gold, silver and platinum), and in","page_number":61,"box":{"x":593,"y":816,"width":249,"height":12}},{"id":"c3a3a2c7-0001-44da-959e-19b40dbdb80f","block_type":"box","text":"asset-based securities indexed to the value of such metals. Such securities may be purchased when","page_number":61,"box":{"x":116,"y":831,"width":752,"height":12}},{"id":"25498dac-4605-4f9c-ad66-ed9a15107739","block_type":"box","text":"they are believed to be attractively priced in relation to the value of a company’s precious metal-related","page_number":61,"box":{"x":116,"y":847,"width":769,"height":12}},{"id":"5fa211f2-b66c-4121-9734-0a2f1dfef918","block_type":"box","text":"assets or when the values of precious metals are expected to benefit from inflationary pressure or","page_number":61,"box":{"x":116,"y":862,"width":731,"height":12}},{"id":"fd8ecdcb-96f6-4b58-b113-d03598018c08","block_type":"box","text":"other economic, political or financial uncertainty or instability. Based on historical experience, during","page_number":61,"box":{"x":116,"y":878,"width":746,"height":12}},{"id":"c8d72ed9-cf38-423c-a5ee-04ac3111062d","block_type":"box","text":"II-2","page_number":61,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"b1d1a620-1f2a-4487-a5c6-ed8ccc3c117f","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":61,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e371716f-6ed5-4af5-af3c-5015c8737739","block_type":"box","text":"periods of economic or financial instability the securities of companies involved in precious metals may","page_number":62,"box":{"x":117,"y":87,"width":766,"height":12}},{"id":"63e32bb2-3bdc-4fb4-9285-d7e58fce317c","block_type":"box","text":"be subject to extreme price fluctuations, reflecting the high volatility of precious metal prices during","page_number":62,"box":{"x":117,"y":102,"width":736,"height":13}},{"id":"3e160504-f9c2-4c60-970a-def4f6a34f38","block_type":"box","text":"such periods. In addition, the instability of precious metal prices may result in volatile earnings of","page_number":62,"box":{"x":116,"y":118,"width":721,"height":12}},{"id":"6450d8a8-0e1f-4c73-8800-6dfab68c1a17","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such","page_number":62,"box":{"x":117,"y":134,"width":754,"height":12}},{"id":"412ed07b-9e81-4563-b8d8-117c266bffa1","block_type":"box","text":"companies. The major producers of gold include the Republic of South Africa, Russia, Canada, the","page_number":62,"box":{"x":116,"y":149,"width":739,"height":12}},{"id":"b53bd5bd-f471-4e69-8fe9-817f36842da1","block_type":"box","text":"United States, Brazil and Australia. Sales of gold by Russia are largely unpredictable and often relate","page_number":62,"box":{"x":117,"y":165,"width":754,"height":12}},{"id":"4c339404-8087-404a-849c-e2bc5ae096bc","block_type":"box","text":"to political and economic considerations rather than to market forces. Economic, financial, social and","page_number":62,"box":{"x":116,"y":180,"width":753,"height":12}},{"id":"23d340bf-5314-4284-ab06-21f1ede0f195","block_type":"box","text":"political factors within South Africa may significantly affect South African gold production.","page_number":62,"box":{"x":117,"y":196,"width":663,"height":12}},{"id":"058d009e-71c0-45f7-968c-ceb43a770359","block_type":"box","text":"Borrowing and Leverage.","page_number":62,"box":{"x":116,"y":227,"width":201,"height":12}},{"id":"bdea5e0b-bb73-4c88-8891-7728544cace3","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or","page_number":62,"box":{"x":318,"y":227,"width":517,"height":12}},{"id":"c28d351b-7836-4b97-bdd5-afe5d7072fbd","block_type":"box","text":"emergency purposes, including to meet redemptions or to settle securities transactions. Certain Funds","page_number":62,"box":{"x":116,"y":242,"width":765,"height":12}},{"id":"a896e6be-be01-44be-a455-75d606b830b3","block_type":"box","text":"will not purchase securities at any time when borrowings exceed 5% of their total assets, except (a) to","page_number":62,"box":{"x":116,"y":258,"width":761,"height":12}},{"id":"103f06b6-efef-4212-af4d-3f45527c0630","block_type":"box","text":"honor prior commitments or (b) to exercise subscription rights when outstanding borrowings have been","page_number":62,"box":{"x":117,"y":273,"width":768,"height":12}},{"id":"0bbdd94d-fd78-4b8f-850a-0faf9cad03b2","block_type":"box","text":"obtained exclusively for settlements of other securities transactions.","page_number":62,"box":{"x":116,"y":289,"width":508,"height":12}},{"id":"070d5ab3-a1cb-4054-9b79-41bd22b0f377","block_type":"box","text":"Certain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s","page_number":62,"box":{"x":117,"y":320,"width":740,"height":12}},{"id":"d708f4cb-9f4a-4d25-9631-fd57c382815d","block_type":"box","text":"Prospectus. The purchase of securities while borrowings are outstanding will have the effect of","page_number":62,"box":{"x":117,"y":335,"width":700,"height":12}},{"id":"cb2a1e8f-b0ec-45d4-8bdb-8b46cfb71d56","block_type":"box","text":"leveraging the Fund. Such leveraging increases the Fund’s exposure to capital risk, and borrowed funds","page_number":62,"box":{"x":117,"y":351,"width":769,"height":12}},{"id":"3c5d58c3-e1ee-41d1-b7b8-eab1471205da","block_type":"box","text":"are subject to interest costs that will reduce net income. The use of leverage by a Fund creates an","page_number":62,"box":{"x":116,"y":366,"width":727,"height":12}},{"id":"ba4f5945-a242-4c6f-bbe6-262d885e30a0","block_type":"box","text":"opportunity for greater total return, but, at the same time, creates special risks. For example, leveraging","page_number":62,"box":{"x":116,"y":382,"width":765,"height":12}},{"id":"29874854-e2dc-42db-b636-61ff4715cf9c","block_type":"box","text":"may exaggerate changes in the net asset value (“NAV”) of Fund shares and in the yield on the Fund’s","page_number":62,"box":{"x":117,"y":397,"width":751,"height":12}},{"id":"ec3ec455-feeb-4907-bf9b-4986a6a74774","block_type":"box","text":"portfolio. Although the principal of such borrowings will be fixed, the Fund’s assets may change in value","page_number":62,"box":{"x":117,"y":413,"width":764,"height":12}},{"id":"ab984c4a-5dac-49f9-a119-7699df29088a","block_type":"box","text":"during the time the borrowings are outstanding. Borrowings will create interest expenses for the Fund","page_number":62,"box":{"x":116,"y":428,"width":749,"height":12}},{"id":"69fb373f-a53f-4aec-a03d-092851eb8d63","block_type":"box","text":"that can exceed the income from the assets purchased with the borrowings. To the extent the income or","page_number":62,"box":{"x":116,"y":444,"width":769,"height":12}},{"id":"e0136273-65b0-4204-9dbb-0b6b4df5057b","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the","page_number":62,"box":{"x":116,"y":459,"width":738,"height":12}},{"id":"3c2a6dbd-4a17-4034-96ef-acb99b1d5240","block_type":"box","text":"Fund will have to pay on the borrowings, the Fund’s return will be greater than if leverage had not been","page_number":62,"box":{"x":117,"y":475,"width":761,"height":12}},{"id":"6fb81c7c-7f61-4701-8b86-acd64a7ace98","block_type":"box","text":"used. Conversely, if the income or capital appreciation from the securities purchased with such","page_number":62,"box":{"x":117,"y":490,"width":701,"height":12}},{"id":"2e60e238-0f13-4dce-ad9a-cbfa52223fd5","block_type":"box","text":"borrowed funds is not sufficient to cover the cost of borrowing, the return to the Fund will be less than if","page_number":62,"box":{"x":117,"y":506,"width":761,"height":12}},{"id":"63a44a65-fafa-4cd8-a9b3-7b5b887851b2","block_type":"box","text":"leverage had not been used and, therefore, the amount available for distribution to shareholders as","page_number":62,"box":{"x":117,"y":521,"width":732,"height":12}},{"id":"046edf53-c439-48f8-81c3-01c65360f4aa","block_type":"box","text":"dividends will be reduced. In the latter case, the Manager in its best judgment nevertheless may","page_number":62,"box":{"x":116,"y":537,"width":709,"height":12}},{"id":"2041b350-cc93-4cb3-9841-0fb3364b5ca3","block_type":"box","text":"determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":62,"box":{"x":116,"y":552,"width":699,"height":12}},{"id":"2548a920-522d-4134-9362-6e2969187ee3","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":62,"box":{"x":116,"y":568,"width":677,"height":12}},{"id":"82140b48-c8e5-4f9c-935c-379ff729f76d","block_type":"box","text":"Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit","page_number":62,"box":{"x":117,"y":599,"width":727,"height":12}},{"id":"60f857a6-394d-429a-8cb1-7845d21c504d","block_type":"box","text":"agreements relating to asset coverage, portfolio composition requirements and other matters. It is not","page_number":62,"box":{"x":116,"y":614,"width":758,"height":12}},{"id":"e57a89ae-03fb-4056-9d27-582840441253","block_type":"box","text":"anticipated that observance of such covenants would impede the Manager from managing a Fund’s","page_number":62,"box":{"x":116,"y":630,"width":745,"height":12}},{"id":"888391d9-3ae7-411a-9530-61eb09ffb37d","block_type":"box","text":"portfolio in accordance with the Fund’s investment objectives and policies. However, a breach of any","page_number":62,"box":{"x":117,"y":645,"width":751,"height":12}},{"id":"9af6089d-f001-4b82-b484-c74a5c289a8d","block_type":"box","text":"such covenants not cured within the specified cure period may result in acceleration of outstanding","page_number":62,"box":{"x":116,"y":661,"width":732,"height":12}},{"id":"a6bab4a2-6361-4428-b0bb-5b94981cee71","block_type":"box","text":"indebtedness and require the Fund to dispose of portfolio investments at a time when it may be","page_number":62,"box":{"x":117,"y":676,"width":706,"height":12}},{"id":"7db36559-c722-4dfc-925d-1cb117cc69c9","block_type":"box","text":"disadvantageous to do so.","page_number":62,"box":{"x":116,"y":692,"width":195,"height":12}},{"id":"8a71753b-b4e3-4d0e-b393-69b4b0092860","block_type":"box","text":"Each Fund may at times borrow from affiliates of the Manager, provided that the terms of such","page_number":62,"box":{"x":117,"y":723,"width":699,"height":12}},{"id":"0dcca9c2-d340-4e81-a602-898d99654c3c","block_type":"box","text":"borrowings are no less favorable than those available from comparable sources of funds in the","page_number":62,"box":{"x":117,"y":738,"width":701,"height":12}},{"id":"70cee122-286e-4d50-9986-b606b0902ec2","block_type":"box","text":"marketplace.","page_number":62,"box":{"x":117,"y":754,"width":94,"height":12}},{"id":"eb7cc331-e8f5-48e5-9d42-695898dd731d","block_type":"box","text":"Cash Management.","page_number":62,"box":{"x":117,"y":785,"width":151,"height":12}},{"id":"6baf90a4-0f7b-4ffc-bdc3-6361cb42a107","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide","page_number":62,"box":{"x":275,"y":785,"width":567,"height":12}},{"id":"a0589fe1-188f-4b45-9f04-d283381363d9","block_type":"box","text":"liquidity necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if","page_number":62,"box":{"x":117,"y":800,"width":752,"height":12}},{"id":"a66642b4-fe9a-47f3-ad49-21ecbde7eae8","block_type":"box","text":"considered appropriate in the opinion of the Manager, a portion of a Fund’s assets may be invested in","page_number":62,"box":{"x":116,"y":816,"width":755,"height":12}},{"id":"9d627bf4-ce1c-484a-8f3d-9dd836491fc6","block_type":"box","text":"certain types of instruments with remaining maturities of 397 days or less for liquidity purposes. Such","page_number":62,"box":{"x":116,"y":831,"width":754,"height":12}},{"id":"4d138c49-ce8e-48e3-b542-06360c6a46ba","block_type":"box","text":"instruments would consist of: (i) obligations of the U.S. Government, its agencies, instrumentalities,","page_number":62,"box":{"x":117,"y":847,"width":740,"height":12}},{"id":"42c5feb6-a607-4fd5-82e5-ba4c77242154","block_type":"box","text":"authorities or political subdivisions (“U.S. Government Securities”); (ii) other fixed-income securities","page_number":62,"box":{"x":116,"y":862,"width":742,"height":12}},{"id":"ae372e4c-94aa-44c0-a832-b5c1b45560d9","block_type":"box","text":"rated Aa or higher by Moody’s or AA or higher by S&P or, if unrated, of comparable quality in the","page_number":62,"box":{"x":117,"y":878,"width":721,"height":12}},{"id":"59d3761a-6244-47c3-96f6-21b003fdd7bd","block_type":"box","text":"II-3","page_number":62,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"02bb44c2-934a-4e6b-abbc-ee2e56e7cbd0","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":62,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"17fc90b4-7367-40d6-804d-cfec5edf9426","block_type":"box","text":"opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable certificates of","page_number":63,"box":{"x":116,"y":87,"width":768,"height":12}},{"id":"d87298c4-9001-4faf-a204-e3d85cae5a08","block_type":"box","text":"deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":63,"box":{"x":116,"y":102,"width":730,"height":13}},{"id":"96d24add-1fe0-4f18-bd67-edc6d5c8189a","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the","page_number":63,"box":{"x":117,"y":118,"width":718,"height":12}},{"id":"6590f327-91f4-4235-93dc-435e55cff7d8","block_type":"box","text":"issuer’s parent must have outstanding debt rated Aa or higher by Moody’s or AA or higher by S&P or","page_number":63,"box":{"x":117,"y":134,"width":752,"height":12}},{"id":"9ad0b2c4-c08a-4788-87f1-24f6e81173f9","block_type":"box","text":"outstanding commercial paper, bank obligations or other short-term obligations rated Prime-1 by","page_number":63,"box":{"x":116,"y":149,"width":719,"height":12}},{"id":"6b2461a4-9590-445a-ab2a-0875361e6527","block_type":"box","text":"Moody’s or A-1 by S&P; or, if no such ratings are available, the instrument must be of comparable","page_number":63,"box":{"x":117,"y":165,"width":731,"height":12}},{"id":"ae8b4e03-95b1-4e9f-ac50-32d8c936eb1d","block_type":"box","text":"quality in the opinion of the Manager. For more information on money market instruments, see “Money","page_number":63,"box":{"x":116,"y":180,"width":765,"height":12}},{"id":"e945be28-1dd3-45d8-b110-700406dbd10c","block_type":"box","text":"Market Securities” below.","page_number":63,"box":{"x":117,"y":196,"width":192,"height":9}},{"id":"e7a3e42f-c65f-483b-bb47-033547ec364d","block_type":"box","text":"Collateralized Debt Obligations.","page_number":63,"box":{"x":117,"y":227,"width":251,"height":12}},{"id":"970aa23b-6313-4dd3-96c9-519f3623758d","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations","page_number":63,"box":{"x":369,"y":227,"width":444,"height":12}},{"id":"39ed2bb9-4e29-45ff-8803-11e874136358","block_type":"box","text":"(“CDOs”), which include collateralized bond obligations (“CBOs”), collateralized loan obligations","page_number":63,"box":{"x":117,"y":242,"width":713,"height":12}},{"id":"1eb1b5e4-ea91-413f-b524-8372d2bed0a2","block_type":"box","text":"(“CLOs”) and other similarly structured securities. CDOs are types of asset-backed securities. A CBO","page_number":63,"box":{"x":117,"y":258,"width":756,"height":12}},{"id":"b20f90f9-de97-452a-a4ce-1d1829b50415","block_type":"box","text":"is ordinarily issued by a trust or other special purpose entity (“SPE”) and is typically backed by a","page_number":63,"box":{"x":117,"y":273,"width":716,"height":12}},{"id":"618b84cd-f05c-445d-b5c9-4ac4d308388f","block_type":"box","text":"diversified pool of fixed-income securities (which may include high risk, below investment grade","page_number":63,"box":{"x":116,"y":289,"width":713,"height":12}},{"id":"d0d069b6-2910-4f06-aa10-2e43ac1d066a","block_type":"box","text":"securities) held by such issuer. A CLO is ordinarily issued by a trust or other SPE and is typically","page_number":63,"box":{"x":116,"y":304,"width":722,"height":12}},{"id":"73cc3a53-9678-4c1a-a2be-a741cf2d1651","block_type":"box","text":"collateralized by a pool of loans, which may include, among others, domestic and non-U.S. senior","page_number":63,"box":{"x":116,"y":320,"width":729,"height":12}},{"id":"cc03cd64-a63c-4dd8-a518-f8f00efb1e36","block_type":"box","text":"secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be","page_number":63,"box":{"x":116,"y":335,"width":756,"height":12}},{"id":"8ee2f34c-68ca-4b0f-b8a0-06de011a3ceb","block_type":"box","text":"rated below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO","page_number":63,"box":{"x":117,"y":351,"width":757,"height":12}},{"id":"6cef42db-4d4e-4696-b934-f60150f860ab","block_type":"box","text":"organized outside of the United States may not be deemed to be foreign securities if the CLO is","page_number":63,"box":{"x":116,"y":366,"width":715,"height":12}},{"id":"ecdfcc58-1f77-4a09-bf9c-a71c10c2f2ff","block_type":"box","text":"collateralized by a pool of loans, a substantial portion of which are U.S. loans. Although certain CDOs","page_number":63,"box":{"x":116,"y":382,"width":758,"height":12}},{"id":"7800a11a-5cde-4e07-a9e4-f9c9a97559c4","block_type":"box","text":"may benefit from credit enhancement in the form of a senior-subordinate structure, over","page_number":63,"box":{"x":117,"y":397,"width":655,"height":12}},{"id":"e453f153-06fa-4502-b510-10323e86f9ff","block_type":"box","text":"collateralization or bond insurance, such enhancement may not always be present, and may fail to","page_number":63,"box":{"x":116,"y":413,"width":735,"height":12}},{"id":"eca4d5bc-2276-4cfa-bb52-723288f6b821","block_type":"box","text":"protect a Fund against the risk of loss on default of the collateral. Certain CDO issuers may use","page_number":63,"box":{"x":117,"y":428,"width":713,"height":12}},{"id":"4b4ff325-1a74-4b1b-b951-ee749e146bbd","block_type":"box","text":"derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly,","page_number":63,"box":{"x":116,"y":444,"width":758,"height":12}},{"id":"de4e8c37-d856-4d51-aae0-521707eecb5e","block_type":"box","text":"which entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge","page_number":63,"box":{"x":116,"y":459,"width":742,"height":12}},{"id":"ea3dafe8-faa9-42ad-ba92-565a13d785ed","block_type":"box","text":"management fees and administrative expenses, which are in addition to those of a Fund.","page_number":63,"box":{"x":117,"y":475,"width":664,"height":12}},{"id":"885cd4dd-47c4-444d-9ccd-0759b1c06b63","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called","page_number":63,"box":{"x":117,"y":506,"width":724,"height":12}},{"id":"65ab50c8-e3ab-48e9-b3df-a4e20dae7836","block_type":"box","text":"tranches, varying in risk and yield. The riskiest portion is the “equity” tranche, which bears the first loss","page_number":63,"box":{"x":116,"y":521,"width":765,"height":12}},{"id":"2fcbc20c-471c-4c55-8e9f-b75f51f2613c","block_type":"box","text":"from defaults from the bonds or loans in the SPE and serves to protect the other, more senior tranches","page_number":63,"box":{"x":116,"y":537,"width":768,"height":12}},{"id":"493a5b8a-dfca-4593-929f-d53106baee8e","block_type":"box","text":"from default (though such protection is not complete). Since it is partially protected from defaults, a","page_number":63,"box":{"x":116,"y":552,"width":737,"height":12}},{"id":"5e2b5fa3-cecd-4278-b7dc-1050f64ff059","block_type":"box","text":"senior tranche from a CBO or CLO typically has higher ratings and lower yields than its underlying","page_number":63,"box":{"x":116,"y":568,"width":733,"height":12}},{"id":"62212737-4a0b-4b34-93eb-f4e567f6355f","block_type":"box","text":"securities, and may be rated investment grade. Despite the protection from the equity tranche, CBO or","page_number":63,"box":{"x":116,"y":583,"width":765,"height":12}},{"id":"f95c1333-7f65-4666-8f13-99eb08be4533","block_type":"box","text":"CLO tranches can experience substantial losses due to actual defaults, downgrades of the underlying","page_number":63,"box":{"x":117,"y":599,"width":758,"height":12}},{"id":"6267a822-9b67-4360-b342-e39dd6e6b2c4","block_type":"box","text":"collateral by rating agencies, forced liquidation of the collateral pool due to a failure of coverage tests,","page_number":63,"box":{"x":116,"y":614,"width":758,"height":12}},{"id":"cb39d799-4f2e-4484-a172-2f1ad733994e","block_type":"box","text":"increased sensitivity to defaults due to collateral default and disappearance of protecting tranches,","page_number":63,"box":{"x":117,"y":630,"width":734,"height":12}},{"id":"887e5b63-3369-4d4e-b81d-9b40445b9696","block_type":"box","text":"market anticipation of defaults as well as investor aversion to CBO or CLO securities as a class.","page_number":63,"box":{"x":117,"y":645,"width":716,"height":12}},{"id":"0d546215-e448-445b-bf2e-4089bb592d9e","block_type":"box","text":"Interest on certain tranches of a CDO may be paid in kind or deferred and capitalized (paid in the form","page_number":63,"box":{"x":117,"y":661,"width":757,"height":12}},{"id":"04bd62d9-33db-4150-a2f6-7a142115003e","block_type":"box","text":"of obligations of the same type rather than cash), which involves continued exposure to default risk","page_number":63,"box":{"x":116,"y":676,"width":734,"height":12}},{"id":"385134db-2ae7-45ff-b8c8-2802521c762f","block_type":"box","text":"with respect to such payments.","page_number":63,"box":{"x":116,"y":692,"width":229,"height":12}},{"id":"46fa92cf-af61-4d2f-840b-bf36d6c6b0c3","block_type":"box","text":"The risks of an investment in a CDO depend largely on the type of the collateral securities and the","page_number":63,"box":{"x":116,"y":723,"width":728,"height":12}},{"id":"2a541c70-dfad-4ba8-8c6f-87bb36acf3af","block_type":"box","text":"class of the CDO in which a Fund invests. Normally, CBOs, CLOs and other CDOs are privately","page_number":63,"box":{"x":116,"y":738,"width":712,"height":12}},{"id":"620ab2fd-32f1-49f4-9829-bfc7009847ba","block_type":"box","text":"offered and sold, and thus are not registered under the securities laws. However, an active dealer","page_number":63,"box":{"x":116,"y":754,"width":725,"height":12}},{"id":"e1055c80-035a-47f6-ae89-11663e956d5a","block_type":"box","text":"market may exist for CDOs, allowing a CDO to qualify for Rule 144A transactions. In addition to the","page_number":63,"box":{"x":117,"y":769,"width":736,"height":12}},{"id":"9913f9d2-b348-4409-a49b-dad66d70d3e9","block_type":"box","text":"normal risks associated with fixed-income securities and asset-backed securities generally discussed","page_number":63,"box":{"x":117,"y":785,"width":750,"height":12}},{"id":"5d51354f-986e-4705-aa03-1f27dcf584f3","block_type":"box","text":"elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the possibility that","page_number":63,"box":{"x":116,"y":800,"width":737,"height":12}},{"id":"a3e2937e-39c4-4a8b-9f3d-31749109160b","block_type":"box","text":"distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":63,"box":{"x":116,"y":816,"width":751,"height":12}},{"id":"33e1a3a9-107b-4e6e-832a-589d291cc5b8","block_type":"box","text":"risk that the collateral may default or decline in value or be downgraded, if rated by a nationally","page_number":63,"box":{"x":117,"y":831,"width":708,"height":12}},{"id":"be6506e8-0462-4f6d-adf1-ca34e44e8155","block_type":"box","text":"recognized statistical rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that","page_number":63,"box":{"x":117,"y":847,"width":754,"height":12}},{"id":"d877e1eb-40fa-4738-9f22-071c4e2871ea","block_type":"box","text":"are subordinate to other tranches; (iv) the structure and complexity of the transaction and the legal","page_number":63,"box":{"x":116,"y":862,"width":736,"height":12}},{"id":"da2fbb6b-d306-4817-9bbf-b7294c976991","block_type":"box","text":"documents could lead to disputes among investors regarding the characterization of proceeds; (v) the","page_number":63,"box":{"x":116,"y":878,"width":760,"height":12}},{"id":"6ef42a10-316b-4b4a-946b-4fa60e63084a","block_type":"box","text":"II-4","page_number":63,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"76c3a37f-2418-4c9e-984f-90b446773daa","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":63,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"967dfe40-cc9d-4cf6-bced-a7e634ad7e05","block_type":"box","text":"investment return achieved by the Fund could be significantly different than those predicted by financial","page_number":64,"box":{"x":117,"y":87,"width":771,"height":12}},{"id":"1b0c5699-936c-4c81-ae98-b629adc9bef0","block_type":"box","text":"models; (vi) the lack of a readily available secondary market for CDOs; (vii) the risk of forced “fire sale”","page_number":64,"box":{"x":117,"y":102,"width":765,"height":13}},{"id":"b9c4ffdc-8151-48a5-b95e-c224cf6736d4","block_type":"box","text":"liquidation due to technical defaults such as coverage test failures; and (viii) the CDO’s manager may","page_number":64,"box":{"x":117,"y":118,"width":756,"height":12}},{"id":"24522f0d-207b-4edf-9f3a-1bacd46785a1","block_type":"box","text":"perform poorly.","page_number":64,"box":{"x":117,"y":134,"width":117,"height":12}},{"id":"406dbe99-5da4-4781-ab9e-3512786ddf5b","block_type":"box","text":"Commercial Paper.","page_number":64,"box":{"x":117,"y":165,"width":150,"height":11}},{"id":"807e280d-1ec9-4f8d-9a0e-a68c6b175d8a","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable","page_number":64,"box":{"x":268,"y":165,"width":607,"height":12}},{"id":"70f8fd87-7dff-4074-8706-c4735b691d1a","block_type":"box","text":"by each Fund includes “Section 4(a)(2) paper,” a term that includes debt obligations issued in reliance","page_number":64,"box":{"x":117,"y":180,"width":760,"height":12}},{"id":"b02ff500-4dd2-4d20-921c-df268680b4b5","block_type":"box","text":"on the “private placement” exemption from registration afforded by Section 4(a)(2) of the Securities","page_number":64,"box":{"x":116,"y":196,"width":739,"height":12}},{"id":"2cd07414-bc8e-4328-b28a-8a1e11e6ec75","block_type":"box","text":"Act. Section 4(a)(2) paper is restricted as to disposition under the Federal securities laws, and is","page_number":64,"box":{"x":116,"y":211,"width":719,"height":12}},{"id":"2c238334-ec48-4152-a6e6-254ac57eb449","block_type":"box","text":"frequently sold (and resold) to institutional investors such as the Fund through or with the assistance of","page_number":64,"box":{"x":116,"y":227,"width":769,"height":12}},{"id":"b3829d7b-f080-4312-abf3-fb3a9feed9a5","block_type":"box","text":"investment dealers who make a market in the Section 4(a)(2) paper, thereby providing liquidity. Certain","page_number":64,"box":{"x":117,"y":242,"width":769,"height":12}},{"id":"c86d22a7-18a4-450e-9d92-cc7ea61a7e6f","block_type":"box","text":"transactions in Section 4(a)(2) paper may qualify for the registration exemption provided in Rule 144A","page_number":64,"box":{"x":116,"y":258,"width":759,"height":12}},{"id":"1058f5c7-1d5d-4543-903e-683c86c1ba43","block_type":"box","text":"under the Securities Act. Most Funds can purchase commercial paper rated (at the time of purchase)","page_number":64,"box":{"x":117,"y":273,"width":754,"height":12}},{"id":"6bdb02c5-bb8a-4d0d-9f36-60a8c79fc965","block_type":"box","text":"“A-1” by S&P or “Prime-1” by Moody’s or when deemed advisable by a Fund’s Manager or sub-adviser,","page_number":64,"box":{"x":116,"y":289,"width":772,"height":12}},{"id":"529c763f-e203-4981-a294-353502841a70","block_type":"box","text":"“high quality” issues rated “A-2”, “Prime-2” or “F-2” by S&P, Moody’s or Fitch, respectively.","page_number":64,"box":{"x":116,"y":304,"width":675,"height":12}},{"id":"d2ef3096-bdb9-40fe-bf17-91bdafc4ed6c","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all","page_number":64,"box":{"x":117,"y":335,"width":740,"height":12}},{"id":"c9be0f87-b47d-40c2-9e54-eba5db55d132","block_type":"box","text":"fixed income securities, commercial paper prices are susceptible to fluctuations in interest rates. If","page_number":64,"box":{"x":116,"y":351,"width":732,"height":12}},{"id":"b6caa2ca-2d1a-4dff-8ca6-c0ec084cdf30","block_type":"box","text":"interest rates rise, commercial paper prices will decline and vice versa. However, the short-term nature","page_number":64,"box":{"x":117,"y":366,"width":767,"height":12}},{"id":"04436982-5616-4bcb-bf18-6a0a8b921b64","block_type":"box","text":"of a commercial paper investment generally makes it less susceptible to volatility than many other fixed","page_number":64,"box":{"x":116,"y":382,"width":771,"height":12}},{"id":"8f0888a0-6811-40c9-9f66-7457e46fde28","block_type":"box","text":"income securities because interest rate risk typically increases as maturity lengths increase.","page_number":64,"box":{"x":117,"y":397,"width":686,"height":12}},{"id":"7406e358-51c1-450f-8413-0d53386aced5","block_type":"box","text":"Commercial paper tends to yield smaller returns than longer-term corporate debt because securities","page_number":64,"box":{"x":117,"y":413,"width":746,"height":12}},{"id":"dc74bb95-9b70-4764-b7f7-ea054dc13c4c","block_type":"box","text":"with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":64,"box":{"x":116,"y":428,"width":686,"height":12}},{"id":"2ae15973-2875-4dc0-bd12-99221a9ce1eb","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":64,"box":{"x":117,"y":459,"width":535,"height":12}},{"id":"f779a1f8-4fc5-4540-b19e-a5551ff21239","block_type":"box","text":"Certain Funds seek to gain","page_number":64,"box":{"x":653,"y":459,"width":210,"height":12}},{"id":"2eecc0c8-2bb0-4a9c-92a6-633513a920ce","block_type":"box","text":"exposure to the commodities markets primarily through investments in hybrid instruments. Hybrid","page_number":64,"box":{"x":116,"y":475,"width":727,"height":12}},{"id":"b9b50151-a145-4729-8ca2-ce4df1a8b497","block_type":"box","text":"instruments are either equity or debt derivative securities with one or more commodity-dependent","page_number":64,"box":{"x":117,"y":490,"width":727,"height":12}},{"id":"6e15e853-58b7-422f-904c-959f08b4191a","block_type":"box","text":"components that have payment features similar to a commodity futures contract, a commodity option","page_number":64,"box":{"x":116,"y":506,"width":753,"height":12}},{"id":"11f98edd-8ba5-40eb-b200-e8c88e7278e7","block_type":"box","text":"contract, or a combination of both. Therefore, these instruments are “commodity-linked.” They are","page_number":64,"box":{"x":116,"y":521,"width":731,"height":12}},{"id":"b48cd22d-5fa3-4b4a-a64b-888ff0f1c8a7","block_type":"box","text":"considered “hybrid” instruments because they have both commodity-like and security-like","page_number":64,"box":{"x":116,"y":537,"width":667,"height":12}},{"id":"21849439-a519-4dca-be47-e5354391d0f2","block_type":"box","text":"characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":64,"box":{"x":116,"y":552,"width":738,"height":12}},{"id":"9964ee87-d3d9-46cd-a04d-2ffc78bdd1bd","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable","page_number":64,"box":{"x":116,"y":568,"width":766,"height":12}},{"id":"39bba660-9823-4241-8a35-5ea77c9272be","block_type":"box","text":"economic variable.","page_number":64,"box":{"x":116,"y":583,"width":145,"height":10}},{"id":"8ac4b883-3e3a-4b0e-9cc8-bedd84e42e63","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than","page_number":64,"box":{"x":116,"y":614,"width":686,"height":12}},{"id":"c33e21f9-9eb2-4d73-bd76-87bd4a40d357","block_type":"box","text":"investments in traditional equity and debt securities when the value of those traditional securities is","page_number":64,"box":{"x":117,"y":630,"width":737,"height":12}},{"id":"6a2d1d77-695e-45f1-bfbc-3596a656350f","block_type":"box","text":"declining due to adverse economic conditions. As an example, during periods of rising inflation, debt","page_number":64,"box":{"x":116,"y":645,"width":749,"height":12}},{"id":"40bf1975-7c4f-4cc4-92de-17165b5edb88","block_type":"box","text":"securities have historically tended to decline in value due to the general increase in prevailing interest","page_number":64,"box":{"x":116,"y":661,"width":753,"height":12}},{"id":"3ce652fe-ea04-49f2-8c6a-586310d91b76","block_type":"box","text":"rates. Conversely, during those same periods of rising inflation, the prices of certain commodities, such","page_number":64,"box":{"x":117,"y":676,"width":763,"height":12}},{"id":"1032cd0c-49e4-4447-b26d-6849f2fd1ae1","block_type":"box","text":"as oil and metals, have historically tended to increase. Of course, there cannot be any guarantee that","page_number":64,"box":{"x":116,"y":692,"width":752,"height":12}},{"id":"7d25f0c8-5dfc-40a3-91b5-6bbe7dc1bd88","block_type":"box","text":"these investments will perform in that manner in the future, and at certain times the price movements","page_number":64,"box":{"x":116,"y":707,"width":749,"height":12}},{"id":"86139538-e28a-468e-9fda-63731d8ad101","block_type":"box","text":"of commodity-linked instruments have been parallel to those of debt and equity securities.","page_number":64,"box":{"x":116,"y":723,"width":665,"height":12}},{"id":"f0d7f003-f1f8-4478-955c-a77ee9f7bcf6","block_type":"box","text":"Commodities have historically tended to increase and decrease in value during different parts of the","page_number":64,"box":{"x":117,"y":738,"width":739,"height":12}},{"id":"b0dcee19-9c9f-4e60-8ba1-a32420377358","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in","page_number":64,"box":{"x":117,"y":754,"width":753,"height":12}},{"id":"3a74a535-6635-4897-b4bb-41e8545bad9d","block_type":"box","text":"tandem with the prices of financial assets and thus may not provide overall portfolio diversification","page_number":64,"box":{"x":116,"y":769,"width":725,"height":12}},{"id":"fc7952a8-be46-4961-a34f-a353973d6196","block_type":"box","text":"benefits. Under favorable economic conditions, the Fund’s investments may be expected to under","page_number":64,"box":{"x":117,"y":785,"width":731,"height":12}},{"id":"d11fd045-7b6b-4a33-a49b-a469804a7fed","block_type":"box","text":"perform an investment in traditional securities. Over the long term, the returns on the Fund’s","page_number":64,"box":{"x":117,"y":800,"width":682,"height":12}},{"id":"ebd9f267-0376-4d35-8c5e-7bef9f421ee4","block_type":"box","text":"investments are expected to exhibit low or negative correlation with stocks and bonds.","page_number":64,"box":{"x":117,"y":816,"width":637,"height":12}},{"id":"2e16b63a-566d-43b7-8e2b-0ec83e7a48dc","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":64,"box":{"x":117,"y":847,"width":222,"height":12}},{"id":"fbf8c8ee-d059-48e9-be08-ad9d7e9c5c16","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion","page_number":64,"box":{"x":341,"y":847,"width":546,"height":12}},{"id":"7a7cc271-0328-440a-8e1d-ddfcaaa18ab4","block_type":"box","text":"from regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid","page_number":64,"box":{"x":116,"y":862,"width":761,"height":12}},{"id":"64aa23f5-7451-4107-acf8-342d85483e0e","block_type":"box","text":"instrument that qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid","page_number":64,"box":{"x":117,"y":878,"width":762,"height":12}},{"id":"8928c72d-6753-4065-979c-20d5ee7be297","block_type":"box","text":"II-5","page_number":64,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"422c67ce-ea13-4e96-a311-579542f106f5","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":64,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f07f41d0-4fa1-47cf-aaaa-09c19a12f423","block_type":"box","text":"instrument is considered to be predominantly a security if (a) the issuer of the hybrid instrument","page_number":65,"box":{"x":117,"y":87,"width":712,"height":12}},{"id":"8629e241-c35c-4997-b4ef-9a462f20eba4","block_type":"box","text":"receives payment in full of the purchase price of the hybrid instrument, substantially","page_number":65,"box":{"x":117,"y":102,"width":624,"height":13}},{"id":"1c5ea98b-2cba-4393-8213-21c3d4f3b6e6","block_type":"box","text":"contemporaneously with delivery of the hybrid instrument; (b) the purchaser or holder of the hybrid","page_number":65,"box":{"x":116,"y":118,"width":735,"height":12}},{"id":"7df2ab03-dd2e-4522-8632-3ed5b5e1028e","block_type":"box","text":"instrument is not required to make any payment to the issuer in addition to the purchase price paid","page_number":65,"box":{"x":117,"y":134,"width":735,"height":12}},{"id":"6568fa0d-c3b1-4411-b4e1-17dc0d603d2f","block_type":"box","text":"under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the","page_number":65,"box":{"x":117,"y":149,"width":743,"height":12}},{"id":"0109df5a-9c7b-4bdb-bc6b-6554194bed8c","block_type":"box","text":"hybrid instrument or at maturity; (c) the issuer of the hybrid instrument is not subject by the terms of the","page_number":65,"box":{"x":117,"y":165,"width":770,"height":12}},{"id":"c729db95-a063-4410-ad21-e15a0de6954e","block_type":"box","text":"instrument to mark-to-market margining requirements; and (d) the hybrid instrument is not marketed as","page_number":65,"box":{"x":117,"y":180,"width":768,"height":12}},{"id":"558d6f2b-be1c-4e40-9774-eb0d6c3e8d38","block_type":"box","text":"a contract of sale of a commodity for future delivery (or option on such a contract) subject to applicable","page_number":65,"box":{"x":116,"y":196,"width":768,"height":12}},{"id":"88fdfa1b-3a17-4990-a1a1-c27d3791f7ab","block_type":"box","text":"provisions of the Commodity Exchange Act. Hybrid instruments may be principal protected, partially","page_number":65,"box":{"x":117,"y":211,"width":743,"height":12}},{"id":"3e238071-e7af-4b93-95a3-6919bec3124e","block_type":"box","text":"protected, or offer no principal protection. A principal protected hybrid instrument means that the issuer","page_number":65,"box":{"x":117,"y":227,"width":768,"height":12}},{"id":"9b538e98-c0ec-4fb4-8c24-bf2187224b4f","block_type":"box","text":"will pay, at a minimum, the par value of the note at maturity. Therefore, if the commodity value to which","page_number":65,"box":{"x":116,"y":242,"width":770,"height":12}},{"id":"85859f12-541d-4cba-a094-a40cf152983a","block_type":"box","text":"the hybrid instrument is linked declines over the life of the note, the Fund will receive at maturity the","page_number":65,"box":{"x":116,"y":258,"width":744,"height":12}},{"id":"108878d4-7697-49c1-9415-133e68a015f9","block_type":"box","text":"face or stated value of the note. With a principal protected hybrid instrument, the Fund will receive at","page_number":65,"box":{"x":116,"y":273,"width":750,"height":12}},{"id":"aca90a37-6a59-4cf6-a7db-39ec99a16b4b","block_type":"box","text":"maturity the greater of the par value of the note or the increase in its value based on the underlying","page_number":65,"box":{"x":117,"y":289,"width":739,"height":12}},{"id":"e84bf223-bc31-4c15-bbd6-603d48dab951","block_type":"box","text":"commodity or index. This protection is, in effect, an option whose value is subject to the volatility and","page_number":65,"box":{"x":116,"y":304,"width":751,"height":12}},{"id":"e72958e3-4ffd-4e37-9ba8-fe297e7b3a60","block_type":"box","text":"price level of the underlying commodity. The Manager’s decision whether to use principal protection","page_number":65,"box":{"x":117,"y":320,"width":743,"height":12}},{"id":"d9f74ec9-15eb-42df-957d-df8ffe6e8ba1","block_type":"box","text":"depends in part on the cost of the protection. In addition, the protection feature depends upon the","page_number":65,"box":{"x":116,"y":335,"width":728,"height":12}},{"id":"c6f87a07-94e2-4759-ba1f-5152eea206e9","block_type":"box","text":"ability of the issuer to meet its obligation to buy back the security, and, therefore, depends on the","page_number":65,"box":{"x":116,"y":351,"width":724,"height":12}},{"id":"ed34a4bf-3841-49d2-a858-f4ae2fa63802","block_type":"box","text":"creditworthiness of the issuer. With full principal protection, the Fund will receive at maturity of the","page_number":65,"box":{"x":116,"y":366,"width":731,"height":12}},{"id":"0e5b823a-9171-4d95-9e06-b61fec868703","block_type":"box","text":"hybrid instrument either the stated par value of the hybrid instrument, or potentially, an amount greater","page_number":65,"box":{"x":117,"y":382,"width":764,"height":12}},{"id":"a8f4ed22-dac9-4c3a-ba08-3409d63ccc4c","block_type":"box","text":"than the stated par value if the underlying commodity, index, futures contract or economic variable to","page_number":65,"box":{"x":116,"y":397,"width":753,"height":12}},{"id":"744afcce-a829-44bc-9f60-63e3e4c68c20","block_type":"box","text":"which the hybrid instrument is linked has increased in value. Partially protected hybrid instruments may","page_number":65,"box":{"x":116,"y":413,"width":770,"height":12}},{"id":"54f3d5f4-4316-4175-970f-f960346794e7","block_type":"box","text":"suffer some loss of principal if the underlying commodity, index, futures contract or economic variable","page_number":65,"box":{"x":116,"y":428,"width":758,"height":12}},{"id":"d12a77ca-69d2-4f34-91f8-a0e8ba22af86","block_type":"box","text":"to which the hybrid instrument is linked declines in value during the term of the hybrid instrument.","page_number":65,"box":{"x":116,"y":444,"width":726,"height":12}},{"id":"48c35c26-22e0-4c09-b550-7cae43905d49","block_type":"box","text":"However, partially protected hybrid instruments have a specified limit as to the amount of principal that","page_number":65,"box":{"x":117,"y":459,"width":764,"height":12}},{"id":"66f0d5e4-8bc2-4906-8d11-94e106be5c20","block_type":"box","text":"they may lose.","page_number":65,"box":{"x":116,"y":475,"width":113,"height":12}},{"id":"26a5b0e8-8f6b-4b21-ad80-acda3bf2b8b1","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":65,"box":{"x":116,"y":506,"width":355,"height":12}},{"id":"daeb3489-0597-4da9-bd15-73ea84bee913","block_type":"box","text":"Certain Funds may invest in hybrid instruments that","page_number":65,"box":{"x":473,"y":506,"width":393,"height":12}},{"id":"f84d4127-8cd2-4ac5-a75b-5a2ec0d3b2c4","block_type":"box","text":"offer no principal protection. At maturity, there is a risk that the underlying commodity price, futures","page_number":65,"box":{"x":116,"y":521,"width":738,"height":12}},{"id":"404ad913-5ee0-4888-9b71-e6b2574b06b9","block_type":"box","text":"contract, index or other economic variable may have declined sufficiently in value such that some or all","page_number":65,"box":{"x":116,"y":537,"width":768,"height":12}},{"id":"9d4eda31-dde8-4256-ae18-b3e0360199e4","block_type":"box","text":"of the face value of the hybrid instrument might not be returned. The Manager, at its discretion, may","page_number":65,"box":{"x":116,"y":552,"width":746,"height":12}},{"id":"ecd9bb07-f7be-442f-a791-ac5152a4c507","block_type":"box","text":"invest in a partially protected principal structured note or a note without principal protection. In deciding","page_number":65,"box":{"x":117,"y":568,"width":767,"height":12}},{"id":"b260caf8-ecf5-45db-ae1f-a688f5c058e6","block_type":"box","text":"to purchase a note without principal protection, the Manager may consider, among other things, the","page_number":65,"box":{"x":116,"y":583,"width":743,"height":12}},{"id":"19196f5f-1743-47a5-993c-66504092c038","block_type":"box","text":"expected performance of the underlying commodity futures contract, index or other economic variable","page_number":65,"box":{"x":116,"y":599,"width":761,"height":12}},{"id":"a371d2eb-439e-4769-8899-b04e2203a32f","block_type":"box","text":"over the term of the note, the cost of the note, and any other economic factors that the Manager","page_number":65,"box":{"x":116,"y":614,"width":717,"height":12}},{"id":"d7b3704b-63bb-49fe-896f-62ed92a571e1","block_type":"box","text":"believes are relevant.","page_number":65,"box":{"x":117,"y":630,"width":163,"height":9}},{"id":"f77db55c-7c00-417b-a124-eee0f895ccfd","block_type":"box","text":"Limitations on Leverage.","page_number":65,"box":{"x":116,"y":661,"width":181,"height":12}},{"id":"24cf55f6-2d35-44ce-b15d-9f43e663f7dc","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve","page_number":65,"box":{"x":304,"y":661,"width":534,"height":12}},{"id":"530f35d6-e175-4b2f-81b1-ef9b1011aeee","block_type":"box","text":"leverage. To avoid being subject to undue leverage risk, a Fund will seek to limit the amount of","page_number":65,"box":{"x":117,"y":676,"width":703,"height":12}},{"id":"c5808d41-ca03-4675-a6bf-738bd5aff42c","block_type":"box","text":"economic leverage it has under any one hybrid instrument that it buys and the leverage of the Fund’s","page_number":65,"box":{"x":116,"y":692,"width":750,"height":12}},{"id":"917292b8-050e-4eba-b9c4-04ba4b571e22","block_type":"box","text":"overall portfolio. A Fund will not invest in a hybrid instrument if, at the time of purchase: (i) that","page_number":65,"box":{"x":116,"y":707,"width":699,"height":12}},{"id":"251694fe-620f-455b-b2e3-87e2887e5aae","block_type":"box","text":"instrument’s “leverage ratio” exceeds 300% of the price increase in the underlying commodity, futures","page_number":65,"box":{"x":117,"y":723,"width":753,"height":12}},{"id":"024557be-a324-4c9a-870f-318d175c5c3a","block_type":"box","text":"contract, index or other economic variable or (ii) the Fund’s “portfolio leverage ratio” exceeds 150%,","page_number":65,"box":{"x":116,"y":738,"width":739,"height":12}},{"id":"576ed6c6-8e1e-4e91-854f-f500ff976eb0","block_type":"box","text":"measured at the time of purchase. “Leverage ratio” is the expected increase in the value of a hybrid","page_number":65,"box":{"x":117,"y":754,"width":737,"height":12}},{"id":"a4e16929-0ed7-42c5-9433-b57113d7ee6e","block_type":"box","text":"instrument, assuming a one percent price increase in the underlying commodity, futures contract, index","page_number":65,"box":{"x":117,"y":769,"width":765,"height":12}},{"id":"b4712ac0-7431-4ba7-a8ce-7856bcbbd505","block_type":"box","text":"or other economic factor. In other words, for a hybrid instrument with a leverage factor of 150%, a 1%","page_number":65,"box":{"x":116,"y":785,"width":752,"height":12}},{"id":"cff27900-8616-49f9-b3c2-f6412209a605","block_type":"box","text":"gain in the underlying economic variable would be expected to result in a 1.5% gain in value for the","page_number":65,"box":{"x":116,"y":800,"width":735,"height":12}},{"id":"b3f1b348-c7e4-4e40-a0fd-3b6cc870e718","block_type":"box","text":"hybrid instrument. Conversely, a hybrid instrument with a leverage factor of 150% would suffer a 1.5%","page_number":65,"box":{"x":117,"y":816,"width":757,"height":12}},{"id":"18bac09e-f2de-4e99-aae2-8c743401a22c","block_type":"box","text":"loss if the underlying economic variable lost 1% of its value. “Portfolio leverage ratio” is defined as the","page_number":65,"box":{"x":117,"y":831,"width":758,"height":12}},{"id":"33fa79cb-238b-4520-be38-67c7cc1bc77a","block_type":"box","text":"average (mean) leverage ratio of all instruments in a Fund’s portfolio, weighted by the market values of","page_number":65,"box":{"x":116,"y":847,"width":769,"height":12}},{"id":"8bcf7437-ec73-452e-bd53-7450de826b2f","block_type":"box","text":"such instruments or, in the case of futures contracts, their notional values. A Fund may at times or from","page_number":65,"box":{"x":116,"y":862,"width":771,"height":12}},{"id":"ae1547f0-97c6-46aa-ab4e-01464eb91af1","block_type":"box","text":"II-6","page_number":65,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"d72cbedf-04f0-42e1-be89-450d169f90a3","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":65,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d720909b-da32-4450-af19-a33701eacbc8","block_type":"box","text":"time to time decide not to use leverage in its investments or use less leverage than may otherwise be","page_number":66,"box":{"x":116,"y":87,"width":757,"height":12}},{"id":"6152eac7-b62e-44b1-b2e1-1142c380c2b6","block_type":"box","text":"allowable.","page_number":66,"box":{"x":116,"y":103,"width":79,"height":9}},{"id":"beafa18a-cf01-4321-9c7a-58a546e9acc5","block_type":"box","text":"Counterparty Risk.","page_number":66,"box":{"x":117,"y":134,"width":136,"height":12}},{"id":"b556c832-d0eb-4966-b863-31123eabba44","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded","page_number":66,"box":{"x":255,"y":134,"width":625,"height":12}},{"id":"5a3096d5-ba87-4b1d-97df-689c6a9bb04c","block_type":"box","text":"futures and options, which are standard contracts, hybrid instruments are customized securities, tailor","page_number":66,"box":{"x":116,"y":149,"width":760,"height":12}},{"id":"0ae0f690-ac39-4906-b49f-6dfe170d9764","block_type":"box","text":"made by a specific issuer. With a listed futures or options contract, an investor’s counterparty is the","page_number":66,"box":{"x":117,"y":165,"width":740,"height":12}},{"id":"84f0cd33-84b5-4fac-92c7-663bee7866e7","block_type":"box","text":"exchange clearinghouse. Exchange clearinghouses are capitalized by the exchange members and","page_number":66,"box":{"x":116,"y":180,"width":738,"height":12}},{"id":"1a582f93-23e5-4ee9-9ace-2b551b53cced","block_type":"box","text":"typically have high investment grade ratings (","page_number":66,"box":{"x":116,"y":196,"width":336,"height":12}},{"id":"1b8c2b1d-1a69-43c4-87a0-cb4655c2f2e4","block_type":"box","text":"e.g.","page_number":66,"box":{"x":453,"y":198,"width":26,"height":10}},{"id":"2e53d027-98d2-422f-9657-d130451f5b45","block_type":"box","text":", ratings of AAA or AA by S&P). Therefore, the risk is","page_number":66,"box":{"x":482,"y":196,"width":396,"height":12}},{"id":"a17b795d-0c47-4bc2-b353-b0c32b6c4400","block_type":"box","text":"small that an exchange clearinghouse might be unable to meet its obligations at maturity. However,","page_number":66,"box":{"x":116,"y":211,"width":743,"height":12}},{"id":"47cce9b2-dad6-41fc-91d8-3c0dd33d4110","block_type":"box","text":"with a hybrid instrument, a Fund will take on the counterparty credit risk of the issuer. That is, at","page_number":66,"box":{"x":116,"y":227,"width":715,"height":12}},{"id":"10947f9e-d04a-41b9-afd0-7152a8148918","block_type":"box","text":"maturity of the hybrid instrument, there is a risk that the issuer may be unable to perform its obligations","page_number":66,"box":{"x":117,"y":242,"width":767,"height":12}},{"id":"4c8d6666-68cb-45e2-bc6a-0b1e9a9abdd0","block_type":"box","text":"under the structured note.","page_number":66,"box":{"x":117,"y":258,"width":196,"height":9}},{"id":"a39942ee-c602-4170-9147-9e4ee26ad9fa","block_type":"box","text":"Convertible Securities.","page_number":66,"box":{"x":117,"y":289,"width":180,"height":9}},{"id":"9963b9f1-92ed-4822-817f-be0d1a3298a2","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other","page_number":66,"box":{"x":298,"y":289,"width":554,"height":12}},{"id":"0d678261-ca3b-4034-a3d4-efa9f39592a5","block_type":"box","text":"security that may be converted into or exchanged for a prescribed amount of common stock or other","page_number":66,"box":{"x":116,"y":304,"width":750,"height":12}},{"id":"b1a81b48-ecfc-45f8-833e-da40b9221e93","block_type":"box","text":"equity security of the same or a different issuer within a particular period of time at a specified price or","page_number":66,"box":{"x":116,"y":320,"width":761,"height":12}},{"id":"9755194c-291b-475e-a3af-4860513b668d","block_type":"box","text":"formula. A convertible security entitles the holder to receive interest paid or accrued on debt or the","page_number":66,"box":{"x":116,"y":335,"width":734,"height":12}},{"id":"9a317627-8d6e-45c8-b407-5efca869843a","block_type":"box","text":"dividend paid on preferred stock until the convertible security matures or is redeemed, converted or","page_number":66,"box":{"x":116,"y":351,"width":742,"height":12}},{"id":"74b3b3f4-b6af-4125-a77e-4c8b774b4572","block_type":"box","text":"exchanged. Before conversion, convertible securities have characteristics similar to nonconvertible","page_number":66,"box":{"x":116,"y":366,"width":738,"height":12}},{"id":"50744fa9-bbcf-44e1-8006-192bf02452eb","block_type":"box","text":"income securities in that they ordinarily provide a stable stream of income with generally higher yields","page_number":66,"box":{"x":117,"y":382,"width":757,"height":12}},{"id":"68afd311-eddf-4095-93a6-eba9196e2a05","block_type":"box","text":"than those of common stocks of the same or similar issuers, but lower yields than comparable","page_number":66,"box":{"x":116,"y":397,"width":703,"height":12}},{"id":"db3c4b7b-77b7-4b02-8ea2-73877c6475dd","block_type":"box","text":"nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":66,"box":{"x":117,"y":413,"width":767,"height":12}},{"id":"09dcc4ae-59cb-40a6-b641-48624ff9819e","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The","page_number":66,"box":{"x":116,"y":428,"width":764,"height":12}},{"id":"ff0cecd8-e627-4b55-ba90-4d3e97ec6740","block_type":"box","text":"credit standing of the issuer and other factors also may have an effect on the convertible security’s","page_number":66,"box":{"x":116,"y":444,"width":736,"height":12}},{"id":"b3470979-17b5-4d74-9ab2-fda677c08a06","block_type":"box","text":"investment value. Convertible securities rank senior to common stock in a corporation’s capital","page_number":66,"box":{"x":117,"y":459,"width":706,"height":12}},{"id":"c97553c4-7bc2-4d65-9cff-f1670ef7070e","block_type":"box","text":"structure but are usually subordinated to comparable nonconvertible securities. Convertible securities","page_number":66,"box":{"x":116,"y":475,"width":757,"height":12}},{"id":"0a4a250f-3d20-4fcc-8bca-4f3ca84d1bdd","block_type":"box","text":"may be subject to redemption at the option of the issuer at a price established in the convertible","page_number":66,"box":{"x":117,"y":490,"width":714,"height":12}},{"id":"d56774a7-c307-4574-b307-52c70854c82b","block_type":"box","text":"security’s governing instrument.","page_number":66,"box":{"x":116,"y":506,"width":241,"height":12}},{"id":"bb21db77-301d-4cec-8bf2-83b4efe09d73","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an","page_number":66,"box":{"x":116,"y":537,"width":710,"height":12}},{"id":"4bfe59dc-def1-4215-8de6-4f46425351de","block_type":"box","text":"investment company seeking a high total return from capital appreciation and investment income.","page_number":66,"box":{"x":117,"y":552,"width":727,"height":12}},{"id":"00931cf2-5609-460e-b09c-6db0a2f65ced","block_type":"box","text":"These characteristics include the potential for capital appreciation as the value of the underlying","page_number":66,"box":{"x":116,"y":568,"width":716,"height":12}},{"id":"bfea7667-47b9-4791-bde7-76fc15e890bd","block_type":"box","text":"common stock increases, the relatively high yield received from dividend or interest payments as","page_number":66,"box":{"x":116,"y":583,"width":723,"height":12}},{"id":"2745609b-f11d-426b-97f3-1ce0176f663c","block_type":"box","text":"compared to common stock dividends and decreased risks of decline in value relative to the underlying","page_number":66,"box":{"x":116,"y":599,"width":770,"height":12}},{"id":"a72652b0-2dbb-44da-8a9d-c82bff716e0f","block_type":"box","text":"common stock due to their fixed-income nature. As a result of the conversion feature, however, the","page_number":66,"box":{"x":116,"y":614,"width":739,"height":11}},{"id":"40dafac1-cace-4060-87fc-140f901fbcbc","block_type":"box","text":"interest rate or dividend preference on a convertible security is generally less than would be the case if","page_number":66,"box":{"x":117,"y":630,"width":766,"height":12}},{"id":"4d153384-3704-4880-909e-e261fb467ea0","block_type":"box","text":"the securities were issued in nonconvertible form.","page_number":66,"box":{"x":116,"y":645,"width":373,"height":10}},{"id":"4c4f2a98-09bb-405b-bee7-2a25c2d9948b","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security","page_number":66,"box":{"x":117,"y":676,"width":755,"height":12}},{"id":"c89e155e-e77d-4a0b-8c16-735df1b4c1ce","block_type":"box","text":"relative to its credit quality and the potential capital appreciation that is offered by the underlying","page_number":66,"box":{"x":117,"y":692,"width":710,"height":12}},{"id":"31a5f7f6-8672-482a-838b-5cbe22822543","block_type":"box","text":"common stock, among other things.","page_number":66,"box":{"x":116,"y":707,"width":265,"height":12}},{"id":"ea1cfe93-ae43-4769-b5e9-eaabc0e3529d","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":66,"box":{"x":117,"y":738,"width":758,"height":10}},{"id":"9bc858cc-1db6-43bf-8ce6-78e4b12be712","block_type":"box","text":"substantial portion of the convertible securities held by a Fund are denominated in U.S. dollars, the","page_number":66,"box":{"x":116,"y":754,"width":734,"height":12}},{"id":"55ff2e72-2063-44b1-80ef-90151e9b1d59","block_type":"box","text":"underlying equity securities may be quoted in the currency of the country where the issuer is domiciled.","page_number":66,"box":{"x":117,"y":769,"width":764,"height":12}},{"id":"1dbfd197-2385-4b2b-a345-3188da207bec","block_type":"box","text":"As a result, fluctuations in the exchange rate between the currency in which the debt security is","page_number":66,"box":{"x":116,"y":785,"width":707,"height":12}},{"id":"52350c60-820a-401f-87da-c2a17e279098","block_type":"box","text":"denominated and the currency in which the share price is quoted will affect the value of the convertible","page_number":66,"box":{"x":116,"y":800,"width":761,"height":12}},{"id":"94c25baa-f126-4327-9418-86e6098a7d31","block_type":"box","text":"security. With respect to convertible securities denominated in a currency different from that of the","page_number":66,"box":{"x":116,"y":816,"width":728,"height":12}},{"id":"e1189574-3857-4406-ab2d-8088904ba061","block_type":"box","text":"underlying equity securities, the conversion price may be based on a fixed exchange rate established","page_number":66,"box":{"x":117,"y":831,"width":756,"height":12}},{"id":"629231ae-b799-4234-9ba9-96735e2a917a","block_type":"box","text":"at the time the security is issued, which may increase the effects of currency risk. As described below,","page_number":66,"box":{"x":116,"y":847,"width":763,"height":12}},{"id":"92fa1ebc-bc5a-4ef6-962d-855bdbf74c93","block_type":"box","text":"a Fund is authorized to enter into foreign currency hedging transactions in which it may seek to reduce","page_number":66,"box":{"x":116,"y":862,"width":766,"height":12}},{"id":"20326cb0-b058-4854-8910-4e4178c09e90","block_type":"box","text":"the effect of exchange rate fluctuations.","page_number":66,"box":{"x":116,"y":878,"width":298,"height":12}},{"id":"0c1618f9-f982-4113-9abe-e052396f775c","block_type":"box","text":"II-7","page_number":66,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"172d75d6-a503-4b63-a1b6-e9fc22a92a23","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":66,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"09d38b6e-1339-4d6d-b0a1-8438e3910203","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield","page_number":67,"box":{"x":116,"y":87,"width":749,"height":12}},{"id":"057300dc-8234-4c4f-a6ee-27e355a41e76","block_type":"box","text":"on nonconvertible securities of comparable issuers and by the value of the underlying common stock.","page_number":67,"box":{"x":116,"y":102,"width":757,"height":13}},{"id":"bc945f50-600e-4dcc-83f3-b89cfb290a7e","block_type":"box","text":"The value of a convertible security viewed without regard to its conversion feature (","page_number":67,"box":{"x":116,"y":118,"width":617,"height":12}},{"id":"72007d29-7353-4ed5-9b61-9a8eff5d3217","block_type":"box","text":"i.e.","page_number":67,"box":{"x":734,"y":118,"width":20,"height":10}},{"id":"3ed238d4-ec54-49b5-9361-2f08b760f0c5","block_type":"box","text":", strictly on the","page_number":67,"box":{"x":757,"y":118,"width":112,"height":12}},{"id":"ee95a607-6645-41d9-8b25-2b7620450d47","block_type":"box","text":"basis of its yield) is sometimes referred to as its “investment value.” To the extent interest rates","page_number":67,"box":{"x":117,"y":134,"width":709,"height":12}},{"id":"e14ad995-502a-4b1d-99bd-a6797ce9400a","block_type":"box","text":"change, the investment value of the convertible security typically will fluctuate. At the same time,","page_number":67,"box":{"x":116,"y":149,"width":720,"height":12}},{"id":"b3dd8862-2770-4e8d-998a-057d265fe18e","block_type":"box","text":"however, the value of the convertible security will be influenced by its “conversion value,” which is the","page_number":67,"box":{"x":117,"y":165,"width":756,"height":12}},{"id":"ab1ef174-d1b4-4355-8cf8-e112b2f466b8","block_type":"box","text":"market value of the underlying common stock that would be obtained if the convertible security were","page_number":67,"box":{"x":117,"y":180,"width":747,"height":12}},{"id":"dd1dfa21-658e-4561-b454-df08b8a39c4c","block_type":"box","text":"converted. Conversion value fluctuates directly with the price of the underlying common stock. If the","page_number":67,"box":{"x":116,"y":196,"width":746,"height":12}},{"id":"16b3f6eb-d043-4d65-b3cf-4eb2812b6b13","block_type":"box","text":"conversion value of a convertible security is substantially below its investment value, the price of the","page_number":67,"box":{"x":116,"y":211,"width":748,"height":12}},{"id":"54c5a296-9e6d-4be6-b60b-4caf3545a365","block_type":"box","text":"convertible security is governed principally by its investment value. To the extent the conversion value","page_number":67,"box":{"x":116,"y":227,"width":761,"height":12}},{"id":"395b321f-9822-4a14-b42a-6f3bd80ae9c7","block_type":"box","text":"of a convertible security increases to a point that approximates or exceeds its investment value, the","page_number":67,"box":{"x":116,"y":242,"width":743,"height":12}},{"id":"a10dc0c0-6e7e-4356-b6cf-64253dd0b488","block_type":"box","text":"price of the convertible security will be influenced principally by its conversion value. A convertible","page_number":67,"box":{"x":117,"y":258,"width":729,"height":12}},{"id":"183fa9bb-4926-4269-aec5-25cc16a377f1","block_type":"box","text":"security will sell at a premium over the conversion value to the extent investors place value on the right","page_number":67,"box":{"x":116,"y":273,"width":768,"height":12}},{"id":"1cd2fde0-db83-4b03-9b9d-7ecec53611b8","block_type":"box","text":"to acquire the underlying common stock while holding a fixed-income security. The yield and","page_number":67,"box":{"x":116,"y":289,"width":691,"height":12}},{"id":"941f1cf0-379a-4178-b4a4-a89b5f672b8e","block_type":"box","text":"conversion premium of convertible securities issued in Japan and the Euromarket are frequently","page_number":67,"box":{"x":116,"y":304,"width":718,"height":12}},{"id":"9d69b50d-9ed4-464d-9f4b-fa2971b135b8","block_type":"box","text":"determined at levels that cause the conversion value to affect their market value more than the","page_number":67,"box":{"x":116,"y":320,"width":708,"height":9}},{"id":"e0940ee7-d5df-4273-91b7-edfdfd6acfd9","block_type":"box","text":"securities’ investment value.","page_number":67,"box":{"x":116,"y":335,"width":215,"height":10}},{"id":"0c7beacd-0976-4a75-8a0a-9e7b30dc0929","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":67,"box":{"x":117,"y":362,"width":770,"height":12}},{"id":"6177b8f8-8f4c-46a9-9e1f-d72bea774a66","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible","page_number":67,"box":{"x":116,"y":378,"width":713,"height":12}},{"id":"35b11d0b-59b8-4a68-998f-e4c33cb13875","block_type":"box","text":"security may be subject to redemption at the option of the issuer at a price established in a charter","page_number":67,"box":{"x":116,"y":393,"width":734,"height":12}},{"id":"7199a1e9-eb67-4b34-881f-1969a3ac7296","block_type":"box","text":"provision, indenture or other governing instrument pursuant to which the convertible security was","page_number":67,"box":{"x":117,"y":409,"width":723,"height":12}},{"id":"31e6e763-7555-42a2-9ca9-378d7e386df8","block_type":"box","text":"issued. If a convertible security held by a Fund is called for redemption, the Fund will be required to","page_number":67,"box":{"x":117,"y":424,"width":741,"height":12}},{"id":"544b9b0e-91ad-41d2-9da1-1f3a513a1ee1","block_type":"box","text":"redeem the security, convert it into the underlying common stock or sell it to a third party. Certain","page_number":67,"box":{"x":117,"y":440,"width":723,"height":12}},{"id":"549ff6f6-c1c8-42fe-8694-127a13f145af","block_type":"box","text":"convertible debt securities may provide a put option to the holder, which entitles the holder to cause","page_number":67,"box":{"x":116,"y":455,"width":745,"height":12}},{"id":"6e98e2a4-620f-4fa5-9c60-97ade405bb96","block_type":"box","text":"the security to be redeemed by the issuer at a premium over the stated principal amount of the debt","page_number":67,"box":{"x":116,"y":471,"width":745,"height":12}},{"id":"93a540a2-3fd3-46d9-a811-155523ca15ae","block_type":"box","text":"security under certain circumstances.","page_number":67,"box":{"x":116,"y":486,"width":282,"height":12}},{"id":"311dc5a9-8c4a-497b-9ae0-e9732bd1ff94","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include","page_number":67,"box":{"x":116,"y":513,"width":765,"height":12}},{"id":"1226f566-e09e-417d-81e5-6cd7b083e70b","block_type":"box","text":"either Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are","page_number":67,"box":{"x":116,"y":529,"width":717,"height":9}},{"id":"0b53037e-2116-47a4-891a-62ec5be03de6","block_type":"box","text":"instruments that are created by the issuer and have the economic characteristics of traditional","page_number":67,"box":{"x":117,"y":544,"width":701,"height":12}},{"id":"40af19dc-1db3-4303-a705-d26e54ef4036","block_type":"box","text":"convertible securities but may not actually permit conversion into the underlying equity securities in all","page_number":67,"box":{"x":116,"y":560,"width":760,"height":12}},{"id":"5e926cba-0be2-4574-b4e4-6e7182af63ea","block_type":"box","text":"circumstances. As an example, a private company may issue a Cash-Settled Convertible that is","page_number":67,"box":{"x":116,"y":575,"width":715,"height":12}},{"id":"b614ffc7-7c62-45c0-b8f0-0b2006ffad2e","block_type":"box","text":"convertible into common stock only if the company successfully completes a public offering of its","page_number":67,"box":{"x":116,"y":591,"width":721,"height":12}},{"id":"979df6f0-85de-46c8-b14d-2d7b223ff2ce","block_type":"box","text":"common stock prior to maturity and otherwise pays a cash amount to reflect any equity appreciation.","page_number":67,"box":{"x":116,"y":606,"width":751,"height":12}},{"id":"d22cec9f-5753-4429-9b4c-b2d279eb6142","block_type":"box","text":"“Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":67,"box":{"x":116,"y":622,"width":726,"height":12}},{"id":"d583116c-44eb-40ff-a9fe-5815fccae97b","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":67,"box":{"x":116,"y":637,"width":651,"height":12}},{"id":"45422d89-7c87-4989-8d7c-29d00ff80236","block_type":"box","text":"i.e.","page_number":67,"box":{"x":767,"y":638,"width":21,"height":9}},{"id":"abf7eeff-76d0-4472-a869-6a9375a4f0ed","block_type":"box","text":", fixed","page_number":67,"box":{"x":791,"y":637,"width":49,"height":12}},{"id":"77947018-e19b-48c2-bee8-4f905427b51d","block_type":"box","text":"income (“fixed-income component”) or a right to acquire equity securities (“convertibility component”).","page_number":67,"box":{"x":117,"y":653,"width":756,"height":12}},{"id":"2c70be72-5be2-43b1-8a5c-4176c871612c","block_type":"box","text":"The fixed-income component is achieved by investing in nonconvertible fixed-income securities, such","page_number":67,"box":{"x":116,"y":668,"width":751,"height":12}},{"id":"f58cd5f2-ac0a-4527-a915-e427e010ab6e","block_type":"box","text":"as nonconvertible bonds, preferred stocks and money market instruments. The convertibility","page_number":67,"box":{"x":116,"y":684,"width":684,"height":12}},{"id":"c4641589-65c7-47c5-b672-696bea78d039","block_type":"box","text":"component is achieved by investing in call options, warrants, or other securities with equity conversion","page_number":67,"box":{"x":116,"y":700,"width":758,"height":12}},{"id":"c1c8c058-f488-4e12-8e2e-c6e764463427","block_type":"box","text":"features (“equity features”) granting the holder the right to purchase a specified quantity of the","page_number":67,"box":{"x":116,"y":715,"width":697,"height":12}},{"id":"91a08c75-4655-4d8f-91ac-7e2dc52d6776","block_type":"box","text":"underlying stocks within a specified period of time at a specified price or, in the case of a stock index","page_number":67,"box":{"x":117,"y":730,"width":745,"height":13}},{"id":"a3457a51-3101-4831-b302-f1aa5d487620","block_type":"box","text":"option, the right to receive a cash payment based on the value of the underlying stock index.","page_number":67,"box":{"x":116,"y":746,"width":685,"height":12}},{"id":"5075e9c1-29a3-4eec-867b-578435a7a4a5","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a","page_number":67,"box":{"x":116,"y":773,"width":751,"height":12}},{"id":"ca905b89-0743-4a57-8166-654c0e9614ca","block_type":"box","text":"traditional convertible security, which is a single security that has a unitary market value, a","page_number":67,"box":{"x":116,"y":789,"width":669,"height":12}},{"id":"b848b117-eae8-4112-be9e-64fd11045b9a","block_type":"box","text":"Manufactured Convertible is comprised of two or more separate securities, each with its own market","page_number":67,"box":{"x":117,"y":804,"width":742,"height":12}},{"id":"c50d8b4f-e627-4d4c-9c01-b8054417becd","block_type":"box","text":"value. Therefore, the total “market value” of such a Manufactured Convertible is the sum of the values","page_number":67,"box":{"x":116,"y":820,"width":755,"height":11}},{"id":"26718ec4-81dc-4862-9393-d0e79e04b45f","block_type":"box","text":"of its fixed-income component and its convertibility component.","page_number":67,"box":{"x":116,"y":835,"width":472,"height":12}},{"id":"731c9473-5977-49ab-91b0-6f0695b3878c","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a","page_number":67,"box":{"x":117,"y":862,"width":724,"height":12}},{"id":"1b91c91e-4868-43ea-82e7-4c6e9748fd8b","block_type":"box","text":"traditional convertible security. Because many corporations have not issued convertible securities, the","page_number":67,"box":{"x":116,"y":878,"width":761,"height":12}},{"id":"9972759d-32a0-4464-8047-a596c3432000","block_type":"box","text":"II-8","page_number":67,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"dc367998-138d-4681-9ce9-497e6fa78e91","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":67,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b811d634-8897-41b5-a89c-ed99f4400f10","block_type":"box","text":"Manager may combine a fixed-income instrument and an equity feature with respect to the stock of the","page_number":68,"box":{"x":117,"y":87,"width":767,"height":12}},{"id":"d7cdcff8-a2a1-4faa-8f95-03cb2d029881","block_type":"box","text":"issuer of the fixed-income instrument to create a synthetic convertible security otherwise unavailable in","page_number":68,"box":{"x":117,"y":102,"width":767,"height":13}},{"id":"5ad86590-6d59-4a13-9653-04e8a29ffbfb","block_type":"box","text":"the market. The Manager may also combine a fixed-income instrument of an issuer with an equity","page_number":68,"box":{"x":116,"y":118,"width":731,"height":12}},{"id":"b4c7d47d-fb37-4629-8be8-c1dcb07e3ad1","block_type":"box","text":"feature with respect to the stock of a different issuer when the Manager believes such a Manufactured","page_number":68,"box":{"x":116,"y":134,"width":763,"height":12}},{"id":"d6018946-cb78-4fe7-a211-aae6b0067d9f","block_type":"box","text":"Convertible would better promote a Fund’s objective than alternative investments. For example, the","page_number":68,"box":{"x":117,"y":149,"width":742,"height":12}},{"id":"690c90ed-a57f-424d-a4fd-c6e9a38514f9","block_type":"box","text":"Manager may combine an equity feature with respect to an issuer’s stock with a fixed-income security","page_number":68,"box":{"x":117,"y":165,"width":759,"height":12}},{"id":"9b73c98a-591f-4a59-8368-67f63b311f09","block_type":"box","text":"of a different issuer in the same industry to diversify the Fund’s credit exposure, or with a U.S.","page_number":68,"box":{"x":116,"y":180,"width":702,"height":12}},{"id":"21ef9ab5-736a-4d00-ae5e-868a2c9a211d","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional","page_number":68,"box":{"x":116,"y":196,"width":762,"height":12}},{"id":"085046ae-e166-4401-8062-29c4400ed397","block_type":"box","text":"convertible security issued by that issuer. A Manufactured Convertible also is a more flexible","page_number":68,"box":{"x":116,"y":211,"width":691,"height":12}},{"id":"69b9bb8e-7eb4-4aca-bf35-69a509c3adab","block_type":"box","text":"investment in that its two components may be purchased separately and, upon purchasing the","page_number":68,"box":{"x":117,"y":227,"width":704,"height":12}},{"id":"b4fcc710-bf18-4cb7-8b3d-5a0f7a5b182c","block_type":"box","text":"separate securities, “combined” to create a Manufactured Convertible. For example, the Fund may","page_number":68,"box":{"x":116,"y":242,"width":736,"height":12}},{"id":"e9cfe9c7-2486-435e-8d63-cb5410851eb3","block_type":"box","text":"purchase a warrant for eventual inclusion in a Manufactured Convertible while postponing the","page_number":68,"box":{"x":117,"y":258,"width":697,"height":12}},{"id":"1a66b530-bd4f-4fcd-95fa-610ce0a464a3","block_type":"box","text":"purchase of a suitable bond to pair with the warrant pending development of more favorable market","page_number":68,"box":{"x":117,"y":273,"width":743,"height":12}},{"id":"c995e6c2-89f9-4707-b241-4558aedeb14c","block_type":"box","text":"conditions.","page_number":68,"box":{"x":116,"y":289,"width":85,"height":9}},{"id":"194d3c1a-08b7-4e39-8d16-75b15cf763c9","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a","page_number":68,"box":{"x":116,"y":320,"width":761,"height":12}},{"id":"88ab173b-270b-40fd-8726-31e2e28bf564","block_type":"box","text":"traditional convertible security with similar characteristics. For example, in the event a Fund created a","page_number":68,"box":{"x":116,"y":335,"width":758,"height":12}},{"id":"06cea825-ed6a-4c3d-b0b6-aa1a327c1efa","block_type":"box","text":"Manufactured Convertible by combining a short-term U.S. Treasury instrument and a call option on a","page_number":68,"box":{"x":117,"y":351,"width":752,"height":12}},{"id":"07e8e9a5-036c-439e-86e2-668e3e4a0b5d","block_type":"box","text":"stock, the Manufactured Convertible would be expected to outperform a traditional convertible of","page_number":68,"box":{"x":116,"y":366,"width":720,"height":12}},{"id":"ea67bbba-12c9-43a1-8ff8-a45bdb00900f","block_type":"box","text":"similar maturity that is convertible into that stock during periods when Treasury instruments outperform","page_number":68,"box":{"x":116,"y":382,"width":767,"height":12}},{"id":"3508935e-5562-4054-8368-09b1b036830c","block_type":"box","text":"corporate fixed-income securities and underperform during periods when corporate fixed-income","page_number":68,"box":{"x":116,"y":397,"width":722,"height":12}},{"id":"c0f358df-8899-4a8b-a849-1a076ea258ee","block_type":"box","text":"securities outperform Treasury instruments.","page_number":68,"box":{"x":116,"y":413,"width":329,"height":12}},{"id":"23798047-8f4f-4428-a8b0-72a551aff914","block_type":"box","text":"Corporate Loans.","page_number":68,"box":{"x":117,"y":444,"width":134,"height":12}},{"id":"dc16ce90-cd2f-4e82-9c32-24f06f38f55f","block_type":"box","text":"Certain Funds may invest in corporat","page_number":68,"box":{"x":252,"y":444,"width":274,"height":12}},{"id":"161f3ff7-352d-45de-9386-4c4fbb54f76b","block_type":"box","text":"e loans. Corporate loans are generally","page_number":68,"box":{"x":527,"y":444,"width":282,"height":12}},{"id":"f4a460af-138e-403b-bede-12d03a88600c","block_type":"box","text":"non-investment grade floating rate instruments. Usually","page_number":68,"box":{"x":117,"y":459,"width":401,"height":12}},{"id":"2c19e88a-1870-4e4d-a6d1-7f6b419f084a","block_type":"box","text":", they are freely callable at the issuer’s option.","page_number":68,"box":{"x":520,"y":459,"width":336,"height":12}},{"id":"4a9f005b-0d59-4ab2-aee4-f296d406a35b","block_type":"box","text":"Certain Funds may invest in fixed and floating rate loans (“Loans”) arranged through private negotiations","page_number":68,"box":{"x":117,"y":475,"width":762,"height":12}},{"id":"6c2acef6-073d-47d7-9ced-b0315e45f708","block_type":"box","text":"between a corporate borrower or a foreign soverei","page_number":68,"box":{"x":117,"y":490,"width":363,"height":12}},{"id":"317b5fd1-c535-4ca8-925e-5d41f3670a57","block_type":"box","text":"gn entity and one or more financial institutions or","page_number":68,"box":{"x":481,"y":490,"width":358,"height":12}},{"id":"3f880e19-2fc7-437a-af08-921828ce4e27","block_type":"box","text":"institutional investors (“Lenders”). A Fund may invest in","page_number":68,"box":{"x":117,"y":506,"width":399,"height":12}},{"id":"72d5c449-a9f5-4c58-8f0a-d96bf2a44b1f","block_type":"box","text":"such Loans in the form of participations in Loans","page_number":68,"box":{"x":517,"y":506,"width":362,"height":12}},{"id":"a2b3771c-6fe5-408d-a119-acc0b8edc5eb","block_type":"box","text":"(“Participations”) and assignments of all or a porti","page_number":68,"box":{"x":117,"y":521,"width":356,"height":12}},{"id":"ced619af-0cf3-4aca-90d0-cd216a72daa6","block_type":"box","text":"on of Loans from third parties (“Assignments”). A Fund","page_number":68,"box":{"x":474,"y":521,"width":402,"height":12}},{"id":"b75befa2-e495-474d-b1d2-fba0120cad1a","block_type":"box","text":"considers these investments to be investments in debt","page_number":68,"box":{"x":116,"y":537,"width":400,"height":9}},{"id":"80213e0d-a2f2-4c01-9a0f-7d4ac021b045","block_type":"box","text":"securities for purposes of its investment policies.","page_number":68,"box":{"x":516,"y":537,"width":357,"height":12}},{"id":"23a54bed-6fbb-4e3e-8b0a-169102c54c54","block_type":"box","text":"Participations typically will result in the Fund havi","page_number":68,"box":{"x":117,"y":552,"width":353,"height":12}},{"id":"9a3c95d8-84ba-441f-ace7-afa8fc00ce04","block_type":"box","text":"ng a contractual relationship only with the Lender, not","page_number":68,"box":{"x":472,"y":552,"width":392,"height":12}},{"id":"01e97d07-cae3-4e45-95c9-e136ace2fb30","block_type":"box","text":"with the borrower. The Fund will have the right to receive","page_number":68,"box":{"x":116,"y":568,"width":417,"height":12}},{"id":"2585b22c-98d2-4442-86ba-1397735beb13","block_type":"box","text":"payments of principal, interest and any fees to","page_number":68,"box":{"x":534,"y":568,"width":340,"height":12}},{"id":"778f5d31-c5f9-4375-bb8a-c7f745f3fdbd","block_type":"box","text":"which it is entitled only from the Lender selling t","page_number":68,"box":{"x":116,"y":583,"width":344,"height":12}},{"id":"583051fc-36fe-49d4-a2fa-d15464644898","block_type":"box","text":"he Participation and only upon receipt by the Lender of","page_number":68,"box":{"x":461,"y":583,"width":402,"height":12}},{"id":"e4665132-e1dd-4775-9363-f66c622d98e4","block_type":"box","text":"the payments from the borrower. In connection wit","page_number":68,"box":{"x":116,"y":599,"width":365,"height":12}},{"id":"8ee64d79-e2c6-4806-a69f-e5289f2a1e02","block_type":"box","text":"h purchasing Participations, the Fund generally will","page_number":68,"box":{"x":482,"y":599,"width":374,"height":12}},{"id":"5e3e046d-603e-4315-b1d4-97e26bad2f7f","block_type":"box","text":"have no right to enforce compliance by the borrower w","page_number":68,"box":{"x":117,"y":614,"width":383,"height":12}},{"id":"1638aa06-82dd-49e1-a841-e10fbef2a8d1","block_type":"box","text":"with the terms of the loan agreement relating to the","page_number":68,"box":{"x":500,"y":614,"width":376,"height":12}},{"id":"e9be7cc7-7953-4ea2-9bae-14bf149567c8","block_type":"box","text":"Loans, nor any rights of set-off against the borrower, and the Fund may not benefit directly from any","page_number":68,"box":{"x":117,"y":630,"width":729,"height":12}},{"id":"2e29ba77-6880-483b-90bd-ef05d7b9fcf7","block_type":"box","text":"collateral supporting the Loan in which it has purc","page_number":68,"box":{"x":116,"y":645,"width":360,"height":12}},{"id":"f4e3cb14-5676-4c63-9cb4-f52e7bde6760","block_type":"box","text":"hased the Participation. As a result, the Fund will","page_number":68,"box":{"x":477,"y":645,"width":359,"height":12}},{"id":"0a26ff61-f30d-46d5-9a90-1262589bafb9","block_type":"box","text":"assume the credit risk of both the borrower and","page_number":68,"box":{"x":116,"y":661,"width":343,"height":9}},{"id":"cee867b1-6e3f-4e2e-829e-a0b044e7d0fe","block_type":"box","text":"the Lender that is selling the Participation.","page_number":68,"box":{"x":465,"y":661,"width":303,"height":12}},{"id":"751c9023-2438-453b-a0df-5e2fa25d5786","block_type":"box","text":"In the event of the insolvency of the Lender selling the Participation, the Fund may be treated as a","page_number":68,"box":{"x":117,"y":692,"width":727,"height":12}},{"id":"b1bca982-bceb-463c-a9ce-d9fc67c5115f","block_type":"box","text":"general creditor of the Lender and may not benefit from any set-off between the Lender and the","page_number":68,"box":{"x":116,"y":707,"width":709,"height":12}},{"id":"7323e9c4-011a-4c62-a805-c19eb62e3024","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and","page_number":68,"box":{"x":117,"y":723,"width":759,"height":12}},{"id":"d4d0ea30-1c34-43e2-a7d5-c9930456290d","block_type":"box","text":"the borrower is determined by the Fund’s manager to be creditworthy. When the Fund purchases","page_number":68,"box":{"x":116,"y":738,"width":721,"height":12}},{"id":"dc0111da-886a-464c-b48b-6cbb02c66c1c","block_type":"box","text":"Assignments from Lenders, the Fund will acquire direct rights against the borrower on the Loan, and","page_number":68,"box":{"x":116,"y":754,"width":743,"height":12}},{"id":"4a6583e9-d7f3-4815-b18f-221c4f17a846","block_type":"box","text":"will not have exposure to a counterparty’s credit risk. The Funds may enter into Participations and","page_number":68,"box":{"x":116,"y":769,"width":725,"height":12}},{"id":"fbcd0aa6-605b-4c73-bbed-cd5811381e7b","block_type":"box","text":"Assignments on a forward commitment or “when-issued” basis, whereby a Fund would agree to","page_number":68,"box":{"x":116,"y":785,"width":709,"height":12}},{"id":"efd17e00-53cd-4787-9b76-7752f9cd008e","block_type":"box","text":"purchase a Participation or Assignment at set terms in the future. For more information on forward","page_number":68,"box":{"x":117,"y":800,"width":727,"height":12}},{"id":"e9ee9782-ea4a-4c51-8a6c-c1924c27da79","block_type":"box","text":"commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery Securities","page_number":68,"box":{"x":116,"y":816,"width":746,"height":12}},{"id":"723cdd8e-b23b-4c0d-93e7-20d314fab4fa","block_type":"box","text":"and Forward Commitments” below. A Fund may have difficulty disposing of Assignments and","page_number":68,"box":{"x":116,"y":831,"width":697,"height":12}},{"id":"da3ec236-eeda-4408-b946-721047c06ae2","block_type":"box","text":"Participations. In certain cases, the market for such instruments may lack sufficient liquidity, and","page_number":68,"box":{"x":117,"y":847,"width":718,"height":12}},{"id":"8c424481-b6d1-4ca4-84ed-4ec6bcc8186a","block_type":"box","text":"therefore the Fund anticipates that in such cases such instruments could be sold only to a limited","page_number":68,"box":{"x":116,"y":862,"width":725,"height":12}},{"id":"90599038-bb06-46b5-a1be-a23bce3a7179","block_type":"box","text":"number of institutional investors. The lack of a sufficiently liquid secondary market may have an","page_number":68,"box":{"x":117,"y":878,"width":713,"height":12}},{"id":"90b98d40-a8e3-4a6d-8cbd-aef5465e1c0b","block_type":"box","text":"II-9","page_number":68,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"f9ba4bfb-93b7-405e-a594-49e5f67409dc","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":68,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"afe9c9f9-96f7-4393-8384-312d945f8fe4","block_type":"box","text":"adverse impact on the value of such instruments and on the Fund’s ability to dispose of particular","page_number":69,"box":{"x":116,"y":87,"width":727,"height":12}},{"id":"c6c52baa-997e-46ca-bc87-19a5c14a2f7f","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the","page_number":69,"box":{"x":116,"y":102,"width":745,"height":13}},{"id":"5acbcd62-4f6c-49e1-8cc3-2e3c0c46c945","block_type":"box","text":"creditworthiness of the borrower. Leading financial institutions often act as agent for a broader group of","page_number":69,"box":{"x":116,"y":118,"width":770,"height":12}},{"id":"bfcd00d3-c4e3-4109-8991-48c05bf04e11","block_type":"box","text":"Lenders, generally referred to as a syndicate. The syndicate’s agent arranges the loans, holds","page_number":69,"box":{"x":117,"y":134,"width":703,"height":12}},{"id":"112cfc72-c4fe-46e7-9244-46c52dbe0288","block_type":"box","text":"collateral and accepts payments of principal and interest. Failure by the syndicate agent to fulfill its","page_number":69,"box":{"x":116,"y":149,"width":736,"height":12}},{"id":"338b2229-d462-4d9c-a93c-f510ec8b1f46","block_type":"box","text":"obligations may delay or adversely affect receipt of payment by the Fund.","page_number":69,"box":{"x":116,"y":165,"width":550,"height":12}},{"id":"2e1d2a08-8404-46c1-ac13-59213b0c2af8","block_type":"box","text":"The Loans in which the Fund may invest are subject to the risk of loss of principal and income.","page_number":69,"box":{"x":116,"y":193,"width":706,"height":12}},{"id":"c403153d-670b-40e6-9415-b07f6b51cca3","block_type":"box","text":"Although borrowers frequently provide collateral to secure repayment of these obligations they do not","page_number":69,"box":{"x":116,"y":209,"width":757,"height":12}},{"id":"80ec643a-744a-46ed-acf3-e08a0e3c0b60","block_type":"box","text":"always do so. If they do provide collateral, the value of the collateral may not completely cover the","page_number":69,"box":{"x":116,"y":224,"width":732,"height":12}},{"id":"aac17fca-ab0e-4e06-bab9-a5dd6cea06bf","block_type":"box","text":"borrower’s obligations at the time of a default. If a borrower files for protection from its creditors under","page_number":69,"box":{"x":117,"y":240,"width":757,"height":12}},{"id":"5a6c6bd2-6606-4730-a505-c274864893f5","block_type":"box","text":"the U.S. bankruptcy laws, these laws may limit a Fund’s rights to its collateral. In addition, the value of","page_number":69,"box":{"x":116,"y":255,"width":761,"height":12}},{"id":"212490be-1c02-45e5-9336-2b719c8b1915","block_type":"box","text":"collateral may erode during a bankruptcy case. In the event of a bankruptcy, the holder of a Loan may","page_number":69,"box":{"x":116,"y":271,"width":762,"height":12}},{"id":"78754f23-adf1-4c76-b8e4-c4652b2bff3f","block_type":"box","text":"not recover its principal, may experience a long delay in recovering its investment and may not receive","page_number":69,"box":{"x":117,"y":286,"width":765,"height":12}},{"id":"675dd220-b24d-4c1b-8d10-97b0635959ca","block_type":"box","text":"interest during the delay.","page_number":69,"box":{"x":117,"y":302,"width":188,"height":12}},{"id":"5ab6fcb3-a580-4293-ae7b-aabfc0aca7cf","block_type":"box","text":"Transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale","page_number":69,"box":{"x":116,"y":331,"width":763,"height":12}},{"id":"ca6b93de-a85a-458d-8065-bf79d37c5b2b","block_type":"box","text":"of corporate loans may not be readily available to make additional investments or to meet a Fund’s","page_number":69,"box":{"x":116,"y":346,"width":738,"height":12}},{"id":"4ceacb21-fb93-4565-87d1-a303e1416101","block_type":"box","text":"redemption obligations. To the extent the extended settlement process gives rise to short-term liquidity","page_number":69,"box":{"x":117,"y":362,"width":765,"height":12}},{"id":"9671c580-848c-4213-af03-25ee49aaceb8","block_type":"box","text":"needs, a Fund may hold additional cash, sell investments or temporarily borrow from banks and other","page_number":69,"box":{"x":117,"y":377,"width":758,"height":12}},{"id":"14295c46-0369-46b2-9813-a40b0b19062a","block_type":"box","text":"lenders.","page_number":69,"box":{"x":117,"y":393,"width":63,"height":9}},{"id":"c0e46d97-0622-4429-ab71-31456c7b3316","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities","page_number":69,"box":{"x":117,"y":421,"width":746,"height":12}},{"id":"c0f611cc-a761-4b0a-b36d-99478b7cefb7","block_type":"box","text":"laws. Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and","page_number":69,"box":{"x":117,"y":437,"width":758,"height":12}},{"id":"a7615cdb-28f8-45ab-89a2-2671b5cfd106","block_type":"box","text":"purchasers of interests in Loans, such as the Funds, may not have the protection of the anti-fraud","page_number":69,"box":{"x":117,"y":452,"width":729,"height":12}},{"id":"a2805928-dc58-4c0d-b57a-873e7f53abca","block_type":"box","text":"provisions of the federal securities laws as would otherwise be available for bonds or stocks. Instead,","page_number":69,"box":{"x":117,"y":468,"width":755,"height":12}},{"id":"dbd52a6e-5c35-476a-a4fc-bb9fadcebfad","block_type":"box","text":"in such cases, parties generally would rely on the contractual provisions in the Loan agreement itself","page_number":69,"box":{"x":117,"y":483,"width":750,"height":12}},{"id":"1ec2d2a3-225c-4c04-b409-57cb0ccb07b1","block_type":"box","text":"and common-law fraud protections under applicable state law.","page_number":69,"box":{"x":116,"y":499,"width":467,"height":12}},{"id":"5f669abc-f9fd-4a85-8d05-def905c010f6","block_type":"box","text":"Direct Lending","page_number":69,"box":{"x":116,"y":528,"width":108,"height":12}},{"id":"060a3f0a-f543-4df2-ab27-035addd56f0a","block_type":"box","text":". The Fund may act as the originator for direct loans and engage in direct lending. Direct","page_number":69,"box":{"x":226,"y":528,"width":658,"height":12}},{"id":"c02c36f1-441e-46fd-999f-f9b850579a94","block_type":"box","text":"loans between the Fund and a borrower may not be administered by an underwriter or agent bank. The","page_number":69,"box":{"x":117,"y":543,"width":771,"height":12}},{"id":"8aa0061a-fee2-4143-bc66-4bb30ec35078","block_type":"box","text":"Fund may provide financing to commercial borrowers directly or through companies acquired (or","page_number":69,"box":{"x":117,"y":559,"width":719,"height":12}},{"id":"2b96c240-603f-469c-93d1-b4c86a26405a","block_type":"box","text":"created) and owned by or otherwise affiliated with the Fund. The terms of the direct loans are","page_number":69,"box":{"x":116,"y":574,"width":697,"height":12}},{"id":"0a4d1428-9aec-4165-b5b5-d6bd2157a7d8","block_type":"box","text":"negotiated with borrowers in private transactions. Furthermore, a direct loan may be secured or","page_number":69,"box":{"x":117,"y":590,"width":712,"height":12}},{"id":"9550473c-3251-4799-964e-2b7451d2ca8c","block_type":"box","text":"unsecured.","page_number":69,"box":{"x":117,"y":605,"width":87,"height":10}},{"id":"04474be9-6c16-4f13-9079-e1c1fca34bef","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of","page_number":69,"box":{"x":117,"y":634,"width":755,"height":12}},{"id":"04262279-d8ff-46d2-8fe6-ae9c1a358fc9","block_type":"box","text":"the borrower and/or any collateral for payment of interest and repayment of principal. The risks","page_number":69,"box":{"x":116,"y":649,"width":708,"height":12}},{"id":"e1b07e35-20a9-406a-9264-5caf7361730c","block_type":"box","text":"associated with direct loans are substantially similar to those associated with investing in corporate","page_number":69,"box":{"x":116,"y":665,"width":733,"height":12}},{"id":"4b7d4f7b-2fc6-4c0d-984b-7359e9302b6a","block_type":"box","text":"loans. In making a direct loan, the Fund is exposed to the risk that the borrower may default or become","page_number":69,"box":{"x":117,"y":680,"width":764,"height":12}},{"id":"031c3614-e247-4ff1-a376-f8ef112588e1","block_type":"box","text":"insolvent and, consequently, that the Fund will lose money on the loan. Furthermore, direct loans may","page_number":69,"box":{"x":117,"y":696,"width":755,"height":12}},{"id":"f15f313b-0e6c-4b09-a6f6-60807c55fb8c","block_type":"box","text":"subject the Fund to liquidity and interest rate risk and certain direct loans may be deemed illiquid.","page_number":69,"box":{"x":116,"y":712,"width":720,"height":11}},{"id":"413198e5-c775-4976-b452-73b0c1a9fda3","block_type":"box","text":"Direct loans are not publicly traded and may not have a secondary market. The lack of a secondary","page_number":69,"box":{"x":117,"y":727,"width":737,"height":12}},{"id":"53f5adb4-cd0b-4295-8acb-a16298a93ade","block_type":"box","text":"market for direct loans may have an adverse impact on the ability of the Fund to dispose of a direct","page_number":69,"box":{"x":117,"y":742,"width":734,"height":12}},{"id":"f3554989-dc59-44a7-8724-3998e5e1005a","block_type":"box","text":"loan and/or to value the direct loan.","page_number":69,"box":{"x":117,"y":758,"width":260,"height":10}},{"id":"fbb518ff-d168-4f10-8d18-a0984a8ad128","block_type":"box","text":"When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the","page_number":69,"box":{"x":116,"y":787,"width":731,"height":12}},{"id":"4425df61-8b8a-4284-8332-9c2b088b3011","block_type":"box","text":"Fund to originate loans on advantageous terms. In originating loans, the Fund will compete with a","page_number":69,"box":{"x":117,"y":802,"width":722,"height":12}},{"id":"5b6d377c-04b4-47a2-9830-b46fc95fb087","block_type":"box","text":"broad spectrum of lenders. Increased competition for, or a diminishment in the available supply of,","page_number":69,"box":{"x":117,"y":818,"width":727,"height":12}},{"id":"07ba33f4-a1b8-43e5-a37c-16981f7a2599","block_type":"box","text":"qualifying loans could result in lower yields on such loans, which could reduce Fund performance.","page_number":69,"box":{"x":116,"y":833,"width":730,"height":12}},{"id":"612b07cd-7492-4f3f-b342-f4d3976c3749","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing","page_number":69,"box":{"x":116,"y":862,"width":719,"height":12}},{"id":"a9504a75-6999-4ba2-8cce-8da8e0eac624","block_type":"box","text":"significant financial or business difficulties, including companies involved in bankruptcy or other","page_number":69,"box":{"x":116,"y":877,"width":710,"height":12}},{"id":"6efeb01e-031a-47c6-a2f9-bd9e6a40d98a","block_type":"box","text":"II-10","page_number":69,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"8187d94a-27bb-4da2-a804-664ccd097926","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":69,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2bf6c2d7-03e6-4acd-91ea-48e31265dc07","block_type":"box","text":"reorganization and liquidation proceedings. Although the terms of such financing may result in","page_number":70,"box":{"x":117,"y":87,"width":701,"height":12}},{"id":"69ca4fe0-edf9-4aa8-965b-5de6bf4ddb3b","block_type":"box","text":"significant financial returns to the Fund, they involve a substantial degree of risk. The level of analytical","page_number":70,"box":{"x":116,"y":102,"width":768,"height":13}},{"id":"dd2f5787-e6fc-4a07-8ec9-eb343d86540c","block_type":"box","text":"sophistication, both financial and legal, necessary for successful financing to companies experiencing","page_number":70,"box":{"x":116,"y":118,"width":758,"height":12}},{"id":"dc71ebd0-8350-4bc4-bc2d-d612e52c007e","block_type":"box","text":"significant business and financial difficulties is unusually high.","page_number":70,"box":{"x":116,"y":134,"width":461,"height":12}},{"id":"6def7389-6195-44d8-929b-f30ba01d8e46","block_type":"box","text":"Credit Linked Securities.","page_number":70,"box":{"x":117,"y":162,"width":195,"height":10}},{"id":"2c6a36e7-ac37-4810-9005-dc4a6a170d96","block_type":"box","text":"Among the income producing securities in which a Fund may invest are","page_number":70,"box":{"x":313,"y":162,"width":541,"height":12}},{"id":"09709969-8d3a-4c11-a536-738bdd4a2807","block_type":"box","text":"credit linked securities, which are issued by a limited purpose trust or other vehicle that, in turn, invests","page_number":70,"box":{"x":116,"y":178,"width":768,"height":12}},{"id":"ed55bfef-677d-49c2-8b9d-412b141f54ef","block_type":"box","text":"in a derivative instrument or basket of derivative instruments, such as credit default swaps, interest rate","page_number":70,"box":{"x":117,"y":193,"width":771,"height":12}},{"id":"52165711-2f06-48c7-bc23-8e9b86f60725","block_type":"box","text":"swaps and other securities, in order to provide exposure to certain fixed-income markets. For instance,","page_number":70,"box":{"x":116,"y":209,"width":768,"height":12}},{"id":"7050691b-97c8-47f8-be7a-326500523d97","block_type":"box","text":"a Fund may invest in credit linked securities as a cash management tool in order to gain exposure to a","page_number":70,"box":{"x":116,"y":224,"width":765,"height":12}},{"id":"e290fe07-3c3a-4716-be5c-c171b06f3396","block_type":"box","text":"certain market and/or to remain fully invested when more traditional income producing securities are","page_number":70,"box":{"x":116,"y":240,"width":748,"height":12}},{"id":"f84e4f06-c295-428d-a3d1-ce0465d2880c","block_type":"box","text":"not available.","page_number":70,"box":{"x":117,"y":255,"width":103,"height":10}},{"id":"41f03620-92a6-4a90-ad8f-d48b4f0ed427","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive","page_number":70,"box":{"x":117,"y":284,"width":770,"height":12}},{"id":"dbf16182-6433-4a72-9b87-32328df5729d","block_type":"box","text":"periodic income payments (in the form of distributions) and payment of principal at the end of the term","page_number":70,"box":{"x":117,"y":300,"width":761,"height":12}},{"id":"b99e9c12-7216-4b7b-b91b-009e1164b5a5","block_type":"box","text":"of the security.","page_number":70,"box":{"x":116,"y":315,"width":114,"height":12}},{"id":"e5fee59c-a57b-4fd0-9fce-cfcef9f43d46","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s","page_number":70,"box":{"x":117,"y":344,"width":748,"height":12}},{"id":"99de36fa-59cf-40d4-b78a-d9092e0b215c","block_type":"box","text":"potential obligations to, the counterparties to the derivative instruments and other securities in which","page_number":70,"box":{"x":117,"y":359,"width":747,"height":12}},{"id":"3a9f79e2-9d0c-425d-9cad-4aaa47207293","block_type":"box","text":"the issuer invests. For instance, the issuer may sell one or more credit default swaps, under which the","page_number":70,"box":{"x":116,"y":375,"width":762,"height":12}},{"id":"0a8d7089-363a-44c1-96a2-61d2513cf92b","block_type":"box","text":"issuer would receive a stream of payments over the term of the swap agreements provided that no","page_number":70,"box":{"x":117,"y":390,"width":736,"height":12}},{"id":"802e0615-dca4-4adf-ba26-45ebbe578a28","block_type":"box","text":"event of default has occurred with respect to the referenced debt obligation upon which the swap is","page_number":70,"box":{"x":116,"y":406,"width":741,"height":12}},{"id":"5fb2b515-5594-4e1c-93df-22757dfc8298","block_type":"box","text":"based. If a default occurs, the stream of payments may stop and the issuer would be obligated to pay","page_number":70,"box":{"x":117,"y":421,"width":756,"height":12}},{"id":"86e2584a-e7cb-4e27-8a48-c37a63a5934e","block_type":"box","text":"the counterparty the par (or other agreed upon value) of the referenced debt obligation. This, in turn,","page_number":70,"box":{"x":116,"y":437,"width":749,"height":12}},{"id":"9d96cb12-26b6-4044-90e1-b3ff1f602af9","block_type":"box","text":"would reduce the amount of income and principal that","page_number":70,"box":{"x":116,"y":452,"width":404,"height":12}},{"id":"9149fc74-36d9-4e38-a4de-6dcd9222fade","block_type":"box","text":"a Fund would receive. A Fund’s investments in","page_number":70,"box":{"x":521,"y":452,"width":351,"height":10}},{"id":"5468013b-4bd8-45d7-b321-413ae9d6ebd0","block_type":"box","text":"these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":70,"box":{"x":116,"y":468,"width":750,"height":12}},{"id":"ec314ab2-44f8-497a-b2c0-bbe71bd34aa5","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk","page_number":70,"box":{"x":116,"y":483,"width":766,"height":12}},{"id":"a8d6e7bc-a184-47b6-92ec-0dc42d3242d5","block_type":"box","text":"and management risk. It is also expected that the securities will be exempt from registration under the","page_number":70,"box":{"x":116,"y":499,"width":761,"height":12}},{"id":"25c3e394-1051-454a-9610-c5350d54198e","block_type":"box","text":"Securities Act. Accordingly, there may be no established trading market for the securities and they may","page_number":70,"box":{"x":116,"y":514,"width":771,"height":12}},{"id":"0ab3eaba-7719-493a-b185-105efdef186c","block_type":"box","text":"constitute illiquid investments.","page_number":70,"box":{"x":116,"y":530,"width":227,"height":12}},{"id":"ecf5d14f-6e37-4026-aa86-65be746a697b","block_type":"box","text":"Debt Securities.","page_number":70,"box":{"x":116,"y":559,"width":126,"height":9}},{"id":"aab480f6-7a78-48d8-9e03-2ef7536b9504","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will","page_number":70,"box":{"x":243,"y":559,"width":633,"height":11}},{"id":"b56e82a2-19d2-40cd-91c5-49f099978eab","block_type":"box","text":"not make timely payments of principal and interest. The degree of credit risk depends on the issuer’s","page_number":70,"box":{"x":117,"y":574,"width":751,"height":12}},{"id":"688f4ae8-0ec4-4c72-9fe7-80b570bf2927","block_type":"box","text":"financial condition and on the terms of the debt securities. Changes in an issuer’s credit rating or the","page_number":70,"box":{"x":116,"y":590,"width":749,"height":12}},{"id":"daaf9881-dcca-46a2-b353-4bac1811fe80","block_type":"box","text":"market’s perception of an issuer’s creditworthiness may also affect the value of a Fund’s investment in","page_number":70,"box":{"x":117,"y":605,"width":763,"height":12}},{"id":"d9f0548e-10f3-4160-8d00-ccc91b8466cc","block_type":"box","text":"that issuer. Credit risk is reduced to the extent a Fund limits its debt investments to U.S. Government","page_number":70,"box":{"x":116,"y":621,"width":754,"height":9}},{"id":"05ff0e93-a7bb-45e8-9da5-af3becbee95b","block_type":"box","text":"Securities.","page_number":70,"box":{"x":116,"y":636,"width":83,"height":10}},{"id":"50699b8e-3b79-4a48-b61a-c1989e586490","block_type":"box","text":"All debt securities, however, are subject to interest rate risk. This is the risk that the value of the","page_number":70,"box":{"x":116,"y":665,"width":709,"height":12}},{"id":"8fbbbc69-8edc-4fff-8ffa-4c746c2e2251","block_type":"box","text":"security may fall when interest rates rise. If interest rates move sharply in a manner not anticipated by","page_number":70,"box":{"x":116,"y":680,"width":755,"height":12}},{"id":"80ba8434-86c9-4767-87d1-4fd727ef6767","block_type":"box","text":"Fund management, a Fund’s investments in debt securities could be adversely affected and the Fund","page_number":70,"box":{"x":117,"y":696,"width":752,"height":12}},{"id":"a6e984cf-a462-4808-a931-1062e1ebd43e","block_type":"box","text":"could lose money. In general, the market price of debt securities with longer maturities will go up or","page_number":70,"box":{"x":116,"y":711,"width":735,"height":12}},{"id":"e2c233dd-e8e7-453e-88ac-0b1493fa939a","block_type":"box","text":"down more in response to changes in interest rates than will the market price of shorter-term debt","page_number":70,"box":{"x":116,"y":727,"width":725,"height":12}},{"id":"5d5499c5-e881-465c-9b43-df13596315fc","block_type":"box","text":"securities.","page_number":70,"box":{"x":116,"y":743,"width":74,"height":9}},{"id":"53978256-cd18-42d7-9e47-7a81c82ea0d5","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended","page_number":70,"box":{"x":117,"y":771,"width":738,"height":12}},{"id":"ad2fe70d-a6b8-4f74-b6e1-d4e9ad4e01cf","block_type":"box","text":"because of slower than expected principal payments. This may lock in a below-market interest rate and","page_number":70,"box":{"x":117,"y":787,"width":765,"height":12}},{"id":"5b784b80-74a6-460b-b815-6faa05454681","block_type":"box","text":"extend the duration of these fixed-income securities, especially mortgage-related securities, making","page_number":70,"box":{"x":116,"y":802,"width":739,"height":12}},{"id":"111b7101-1751-4fc8-bff5-5ef3a461a14f","block_type":"box","text":"them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, these","page_number":70,"box":{"x":116,"y":818,"width":750,"height":12}},{"id":"10346ae2-ee3a-4622-90bf-76088d24aee1","block_type":"box","text":"securities may exhibit additional volatility and lose value. This is known as extension risk.","page_number":70,"box":{"x":116,"y":833,"width":665,"height":12}},{"id":"ad6c66e8-96f1-4b67-9d04-680d49358faf","block_type":"box","text":"The value of fixed-income securities in the Funds can be expected to vary inversely with changes in","page_number":70,"box":{"x":116,"y":862,"width":745,"height":12}},{"id":"4bc77202-e6fe-4a8a-a6a9-d04f8dc83cde","block_type":"box","text":"prevailing interest rates. Fixed-income securities with longer maturities, which tend to produce higher","page_number":70,"box":{"x":117,"y":878,"width":753,"height":11}},{"id":"9c13a974-6233-4dc8-b064-1de9ce4e90ff","block_type":"box","text":"II-11","page_number":70,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"5607bafc-c6a8-4ce3-94b0-f318d206a9cd","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":70,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2fba8047-3e07-4f5d-a041-90dcabc51414","block_type":"box","text":"yields, are subject to potentially greater capital appreciation and depreciation than securities with","page_number":71,"box":{"x":116,"y":87,"width":723,"height":12}},{"id":"53b62481-1abf-4e43-a303-831b0289db45","block_type":"box","text":"shorter maturities. The Funds are not restricted to any maximum or minimum time to maturity in","page_number":71,"box":{"x":116,"y":103,"width":714,"height":12}},{"id":"6f95b35c-2c19-4914-8d3f-4e90b2b2b910","block_type":"box","text":"purchasing individual portfolio securities, and the average maturity of a Fund’s assets will vary.","page_number":71,"box":{"x":117,"y":118,"width":707,"height":12}},{"id":"16402fef-f8cd-40ef-a1c9-f6c5ae745413","block_type":"box","text":"Floating and Variable Rate Securities.","page_number":71,"box":{"x":116,"y":149,"width":280,"height":12}},{"id":"c4d60921-d586-4e3b-bd31-9ae5b0bf7ae5","block_type":"box","text":"Certain Funds may invest in debt instruments that pay a variable","page_number":71,"box":{"x":398,"y":149,"width":490,"height":12}},{"id":"1f4cfdb7-c05a-4d24-acc0-94da2eb9d503","block_type":"box","text":"coupon rate. Securities with floating or variable interest rates can be less sensitive to interest rate","page_number":71,"box":{"x":116,"y":165,"width":728,"height":12}},{"id":"74b3e8da-db68-4db1-9ba5-7f66ae42725e","block_type":"box","text":"changes than securities with fixed interest rates, but may decline in value if their interest rates do not","page_number":71,"box":{"x":116,"y":180,"width":752,"height":12}},{"id":"cc329989-c025-45f9-bf1e-51a60597a23c","block_type":"box","text":"rise as much, or as quickly, as interest rates in general. Conversely, floating rate securities will not","page_number":71,"box":{"x":117,"y":196,"width":732,"height":12}},{"id":"eb64337b-703e-4e85-912c-b2d072a7c43f","block_type":"box","text":"generally increase in value if interest rates decline. The","page_number":71,"box":{"x":116,"y":211,"width":415,"height":12}},{"id":"f6f36d75-b1e9-41c1-bbbf-7fbfb0ffb3a5","block_type":"box","text":"impact of interest rate changes on floating rate","page_number":71,"box":{"x":532,"y":211,"width":350,"height":12}},{"id":"c8659d9c-3b79-4f85-9216-6419298b0e78","block_type":"box","text":"investments is typically mitigated by the periodic interest rate reset of the investments. Benchmark","page_number":71,"box":{"x":117,"y":227,"width":733,"height":12}},{"id":"3d3a9bd2-7dea-40d8-a0c0-5aa33a3eaea4","block_type":"box","text":"interest rates used for floating and variable rate securities may not accurately track market interest","page_number":71,"box":{"x":117,"y":242,"width":734,"height":12}},{"id":"44ab9be6-097e-430b-8cb9-154827abd936","block_type":"box","text":"rates.","page_number":71,"box":{"x":117,"y":258,"width":45,"height":9}},{"id":"8634d444-63ec-4548-ad42-52c457fecaea","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":71,"box":{"x":117,"y":289,"width":179,"height":9}},{"id":"3e119a62-6134-4531-97f2-6e578dcfae47","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income","page_number":71,"box":{"x":297,"y":289,"width":577,"height":12}},{"id":"8a0ae7b3-36ca-4614-aad4-748f36ac0c2d","block_type":"box","text":"securities or other instruments whose principal value is periodically adjusted according to the rate of","page_number":71,"box":{"x":116,"y":304,"width":746,"height":12}},{"id":"d40a4c4f-87cd-4bbb-bc87-d831a1ca9300","block_type":"box","text":"inflation. Two structures are common. The U.S. Treasury and some other issuers use a structure that","page_number":71,"box":{"x":117,"y":320,"width":755,"height":12}},{"id":"3017d955-8157-4f49-af0b-30d836109d24","block_type":"box","text":"accrues inflation into the principal value of the bond. Most other issuers pay out the Consumer Price","page_number":71,"box":{"x":116,"y":335,"width":747,"height":12}},{"id":"0a9145c3-9b60-41c3-a6cf-2c8b79c4e90c","block_type":"box","text":"Index (“CPI”) accruals as part of a semi-annual coupon.","page_number":71,"box":{"x":117,"y":351,"width":417,"height":12}},{"id":"d9059df0-0837-4970-91cd-04f2f0274e73","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years,","page_number":71,"box":{"x":117,"y":382,"width":728,"height":12}},{"id":"b81d4374-3ecd-4dc0-a91f-3b0da06a04cc","block_type":"box","text":"although it is possible that securities with other maturities will be issued in the future. The U.S.","page_number":71,"box":{"x":116,"y":397,"width":703,"height":12}},{"id":"5a216d4d-202c-412f-aab4-016cebe450a9","block_type":"box","text":"Treasury securities pay interest on a semi-annual basis, equal to a fixed percentage of the inflation","page_number":71,"box":{"x":116,"y":413,"width":738,"height":12}},{"id":"9581aa6c-ef42-464f-a138-801310affcd4","block_type":"box","text":"adjusted principal amount. For example, if a Fund purchased an inflation-indexed bond with a par","page_number":71,"box":{"x":116,"y":428,"width":727,"height":12}},{"id":"e939d30e-3e27-4545-9b81-afcf50c7b711","block_type":"box","text":"value of $1,000 and a 3% real rate of return coupon (payable 1.5% semi-annually), and inflation over","page_number":71,"box":{"x":116,"y":443,"width":753,"height":13}},{"id":"2a367cc7-deee-4f80-bbdb-081d57385491","block_type":"box","text":"the first six months was 1%, the mid-year par value of the bond would be $1,010 and the first semi","page_number":71,"box":{"x":116,"y":458,"width":736,"height":13}},{"id":"f1a0cec5-5d5f-4dae-aa8f-077de82b479b","block_type":"box","text":"annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half of the","page_number":71,"box":{"x":116,"y":474,"width":766,"height":13}},{"id":"4ce43baa-5596-4f09-bf6f-18bfcf363031","block_type":"box","text":"year resulted in the whole year’s inflation equaling 3%, the end-of-year par value of the bond would be","page_number":71,"box":{"x":116,"y":490,"width":764,"height":12}},{"id":"f793fa4b-5365-4a2d-be12-406d29d50a06","block_type":"box","text":"$1,030 and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":71,"box":{"x":116,"y":505,"width":689,"height":13}},{"id":"11f6c422-ed4d-40e9-964d-5024d6cce143","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds","page_number":71,"box":{"x":117,"y":537,"width":747,"height":12}},{"id":"9981e116-0021-48f4-a5aa-1f4fce31c54c","block_type":"box","text":"will be adjusted downward, and, consequently, the interest payable on these securities (calculated with","page_number":71,"box":{"x":116,"y":552,"width":769,"height":12}},{"id":"d5cd5959-5537-407b-a73b-446e7eecaa51","block_type":"box","text":"respect to a smaller principal amount) will be reduced. Repayment of the original bond principal upon","page_number":71,"box":{"x":117,"y":568,"width":754,"height":12}},{"id":"7f935c3b-997b-49ac-adaf-f1906086818d","block_type":"box","text":"maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds,","page_number":71,"box":{"x":117,"y":583,"width":755,"height":12}},{"id":"858f4871-9c53-4b81-884d-4cfe5d2649ce","block_type":"box","text":"even during a period of deflation. However, the current market value of the bonds is not guaranteed,","page_number":71,"box":{"x":116,"y":599,"width":748,"height":12}},{"id":"fca35358-7594-47fb-bfc3-40872df4ba45","block_type":"box","text":"and will fluctuate. Certain Funds may also invest in other inflation related bonds which may or may not","page_number":71,"box":{"x":116,"y":614,"width":763,"height":12}},{"id":"fae19513-3b7c-4675-b7f4-f4a190637f0c","block_type":"box","text":"provide a similar guarantee. If a guarantee of principal is not provided, the adjusted principal value of","page_number":71,"box":{"x":117,"y":630,"width":752,"height":12}},{"id":"94244711-f588-44c5-ba9d-a531647d9f4d","block_type":"box","text":"the bond repaid at maturity may be less than the original principal. In addition, if the Fund purchases","page_number":71,"box":{"x":116,"y":645,"width":749,"height":12}},{"id":"4830a245-6793-472e-820a-3e33b502a0a5","block_type":"box","text":"inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign inflation","page_number":71,"box":{"x":117,"y":661,"width":761,"height":12}},{"id":"699c3c4c-8f7e-499d-9e29-6701af83b6c0","block_type":"box","text":"index may not be correlated to the rate of inflation in the United States.","page_number":71,"box":{"x":117,"y":676,"width":523,"height":12}},{"id":"1588321b-6ff6-4ca1-a700-82e696a63f19","block_type":"box","text":"The value of inflation-indexed bonds is expected to change in response to changes in real interest","page_number":71,"box":{"x":116,"y":707,"width":727,"height":12}},{"id":"609887e5-5a27-48f2-a5d8-1bac57dcf3a9","block_type":"box","text":"rates. Real interest rates, in turn, are tied to the relationship between nominal interest rates and the","page_number":71,"box":{"x":117,"y":723,"width":736,"height":12}},{"id":"5cf6e8a7-d25a-447b-aeb1-8c3338f2c51e","block_type":"box","text":"rate of inflation. Therefore, if inflation were to rise at a faster rate than nominal interest rates, real","page_number":71,"box":{"x":117,"y":738,"width":717,"height":11}},{"id":"83a76cef-d638-46fe-bf9b-12b0d99e83a1","block_type":"box","text":"interest rates might decline, leading to an increase in value of inflation-indexed bonds. In contrast, if","page_number":71,"box":{"x":117,"y":754,"width":739,"height":12}},{"id":"bcb0c181-cbe1-4a9e-b3ff-afc818e2fe88","block_type":"box","text":"nominal interest rates increased at a faster rate than inflation, real interest rates might rise, leading to a","page_number":71,"box":{"x":117,"y":769,"width":764,"height":12}},{"id":"5d69c03f-76ae-4810-9628-e97328f5c886","block_type":"box","text":"decrease in value of inflation-indexed bonds. There can be no assurance, however, that the value of","page_number":71,"box":{"x":116,"y":785,"width":745,"height":11}},{"id":"e5c2146c-98ad-4015-8e8e-c34cba556aa1","block_type":"box","text":"inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":71,"box":{"x":117,"y":800,"width":570,"height":12}},{"id":"319dd71e-5240-4ef0-b254-72b664f1a912","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term","page_number":71,"box":{"x":116,"y":831,"width":725,"height":12}},{"id":"aed26cfa-eef2-4a71-ab4b-ef1a48efc363","block_type":"box","text":"increases in inflation may lead to a decline in value. If interest rates rise due to reasons other than","page_number":71,"box":{"x":117,"y":847,"width":731,"height":12}},{"id":"b27780ef-4bd9-4966-9a24-a953177b8eba","block_type":"box","text":"inflation (for example, due to changes in currency exchange rates), investors in these securities may","page_number":71,"box":{"x":117,"y":862,"width":749,"height":12}},{"id":"832a7a0b-409d-493a-a7d3-ba18f37c35e4","block_type":"box","text":"not be protected to the extent that the increase is not reflected in the bond’s inflation measure.","page_number":71,"box":{"x":117,"y":878,"width":704,"height":12}},{"id":"5da2aab2-aee5-40ab-b495-5a73bc8f20aa","block_type":"box","text":"II-12","page_number":71,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"646e5a27-6c58-4bfd-80e4-258535b6e217","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":71,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c856074b-3570-4239-a163-b96e83c98be6","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is","page_number":72,"box":{"x":117,"y":87,"width":750,"height":12}},{"id":"c43817f3-b9e8-4c30-a1b3-42f7902cac85","block_type":"box","text":"the Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S.","page_number":72,"box":{"x":116,"y":102,"width":739,"height":13}},{"id":"87b618da-b861-4e30-bde2-a03e007ce8c2","block_type":"box","text":"Bureau of Labor Statistics. The CPI-U is a measurement of changes in the cost of living, made up of","page_number":72,"box":{"x":117,"y":118,"width":747,"height":12}},{"id":"732c0589-9d2c-4e9c-8266-e5f4d4afd3a3","block_type":"box","text":"components such as housing, food, transportation and energy. Inflation-indexed bonds issued by a","page_number":72,"box":{"x":116,"y":134,"width":739,"height":12}},{"id":"7af3061c-11ca-4671-8f2c-a768ba03b760","block_type":"box","text":"foreign government are generally adjusted to reflect a comparable inflation index, calculated by that","page_number":72,"box":{"x":116,"y":149,"width":743,"height":12}},{"id":"1aec294e-0b60-43e9-a599-4a359c7217fc","block_type":"box","text":"government. There can be no assurance that the CPI-U or any foreign inflation index will accurately","page_number":72,"box":{"x":116,"y":165,"width":744,"height":12}},{"id":"51c6a1b5-a681-4a0d-ac43-6738f7e8c7a3","block_type":"box","text":"measure the real rate of inflation in the prices of goods and services. Moreover, there can be no","page_number":72,"box":{"x":117,"y":180,"width":716,"height":12}},{"id":"6fac8400-19d8-43fa-adf5-59890ebc3c3f","block_type":"box","text":"assurance that the rate of inflation in a foreign country will be correlated to the rate of inflation in the","page_number":72,"box":{"x":116,"y":196,"width":745,"height":12}},{"id":"0df723f0-247c-4083-9c26-c0c21c2ab745","block_type":"box","text":"United States.","page_number":72,"box":{"x":117,"y":211,"width":109,"height":10}},{"id":"3cb23290-3ee2-440c-9002-7faf734a56bf","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary","page_number":72,"box":{"x":116,"y":241,"width":750,"height":12}},{"id":"c044532d-29b3-4c07-b7f3-f893cd7b97cb","block_type":"box","text":"income, even though investors do not receive their principal until maturity.","page_number":72,"box":{"x":117,"y":257,"width":552,"height":12}},{"id":"44f2cb61-459c-40f5-a703-a13284928b19","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":72,"box":{"x":117,"y":286,"width":265,"height":12}},{"id":"f1b55fad-d80a-4541-9909-f77287d8050a","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which","page_number":72,"box":{"x":383,"y":286,"width":492,"height":12}},{"id":"d1bd966a-8586-4107-af74-ff42fa6d8a3e","block_type":"box","text":"are securities rated in the four highest rating categories of an NRSRO or deemed to be of equivalent","page_number":72,"box":{"x":116,"y":302,"width":750,"height":12}},{"id":"f63dbfc4-552b-47dd-b5dd-7a964456a0f8","block_type":"box","text":"quality by a Fund’s Manager. Certain Funds may invest in debt securities rated Aaa by Moody’s or","page_number":72,"box":{"x":116,"y":317,"width":734,"height":12}},{"id":"95285d11-953f-4e05-b35a-e9cd760ab602","block_type":"box","text":"AAA by S&P. It should be noted that debt obligations rated in the lowest of the top four ratings (","page_number":72,"box":{"x":116,"y":333,"width":708,"height":12}},{"id":"8bad7d78-a864-4b89-a3e6-c433a3a83cac","block_type":"box","text":"i.e.","page_number":72,"box":{"x":825,"y":333,"width":20,"height":9}},{"id":"b2c022d8-f65b-4eef-96c8-2d616f17342b","block_type":"box","text":",","page_number":72,"box":{"x":848,"y":341,"width":8,"height":3}},{"id":"b42f1d9f-b540-497c-af11-38f721376b14","block_type":"box","text":"“Baa” by Moody’s or “BBB” by S&P) are considered to have some speculative characteristics and are","page_number":72,"box":{"x":116,"y":348,"width":756,"height":12}},{"id":"34b3b2d6-3fed-46bc-bf35-0b95c25d8dfd","block_type":"box","text":"more sensitive to economic change than higher rated securities. If an investment grade security of a","page_number":72,"box":{"x":117,"y":364,"width":747,"height":12}},{"id":"7a36dbc2-304c-4f5c-9751-6bf8e437846f","block_type":"box","text":"Fund is subsequently downgraded below investment grade, the Fund’s Manager will consider such an","page_number":72,"box":{"x":117,"y":380,"width":761,"height":11}},{"id":"73f29ba9-0b0f-46b9-9a44-52b8b28c47cd","block_type":"box","text":"event in determining whether the Fund should continue to hold the security. Subject to its investment","page_number":72,"box":{"x":116,"y":395,"width":752,"height":12}},{"id":"3766e97c-48dc-470b-8f87-a2cd4cdb7b13","block_type":"box","text":"strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":72,"box":{"x":116,"y":410,"width":679,"height":12}},{"id":"56d7ee38-9c12-4203-94fc-38f8e634695e","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":72,"box":{"x":116,"y":440,"width":566,"height":12}},{"id":"80c8e4dd-db0b-4c16-915e-c2b9578c948f","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":72,"box":{"x":116,"y":477,"width":296,"height":13}},{"id":"6f34c9f4-1839-43f9-b4b2-a6218d60e2eb","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to","page_number":72,"box":{"x":117,"y":507,"width":711,"height":12}},{"id":"82ad8d8c-5595-4f13-8686-01edcfbbd43c","block_type":"box","text":"investors as “junk bonds” are debt securities that are rated below investment grade by the major rating","page_number":72,"box":{"x":117,"y":523,"width":764,"height":12}},{"id":"74ae045a-f3ed-4c15-81a8-2a2d11a5045e","block_type":"box","text":"agencies or are securities that Fund management believes are of comparable quality. While generally","page_number":72,"box":{"x":116,"y":538,"width":759,"height":12}},{"id":"d00e1cbc-7589-4c7b-b734-1218f5b69a5f","block_type":"box","text":"providing greater income and opportunity for gain, non-investment grade debt securities may be","page_number":72,"box":{"x":117,"y":554,"width":715,"height":12}},{"id":"af7bb117-c5c0-4b47-9302-f8e005e3736c","block_type":"box","text":"subject to greater risks than securities which have higher credit ratings, including a high risk of default,","page_number":72,"box":{"x":116,"y":569,"width":764,"height":12}},{"id":"aabe50bd-9f58-418f-b3d7-71b82bfc1b1e","block_type":"box","text":"and their yields will fluctuate over time. High yield securities will generally be in the lower rating","page_number":72,"box":{"x":116,"y":585,"width":709,"height":12}},{"id":"920f2419-5ea7-4d93-bcc3-f917bc6b9cc3","block_type":"box","text":"categories of recognized rating agencies (rated “Ba” or lower by Moody’s or “BB” or lower by S&P) or","page_number":72,"box":{"x":116,"y":600,"width":755,"height":12}},{"id":"f0ea0980-565b-41cb-81e0-9aa89a45b8c4","block_type":"box","text":"will be non-rated. The credit rating of a high yield security does not necessarily address its market","page_number":72,"box":{"x":116,"y":616,"width":730,"height":12}},{"id":"9315ff30-74de-4ded-8787-02cc0304fdec","block_type":"box","text":"value risk, and ratings may from time to time change, positively or negatively, to reflect developments","page_number":72,"box":{"x":116,"y":631,"width":757,"height":12}},{"id":"56513aca-3b17-41df-af2d-29ac7e7cbd1d","block_type":"box","text":"regarding the issuer’s financial condition. High yield securities are considered to be speculative with","page_number":72,"box":{"x":117,"y":647,"width":743,"height":12}},{"id":"276d6899-9f25-4294-b412-979cc793ed43","block_type":"box","text":"respect to the capacity of the issuer to timely repay principal and pay interest or dividends in","page_number":72,"box":{"x":117,"y":662,"width":682,"height":12}},{"id":"9d3546b8-3919-4dc7-bc1c-cf20b6f3abc8","block_type":"box","text":"accordance with the terms of the obligation and may have more credit risk than higher rated securities.","page_number":72,"box":{"x":116,"y":678,"width":761,"height":12}},{"id":"ed406dfc-38c2-46ac-a3de-a1dbf81c7c2f","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":72,"box":{"x":116,"y":708,"width":464,"height":12}},{"id":"eed9b2b2-5bc8-427b-b7db-9a5400b0bb40","block_type":"box","text":"• Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to","page_number":72,"box":{"x":117,"y":731,"width":731,"height":12}},{"id":"3b77ea32-c5a3-44ff-82c5-68402198d03e","block_type":"box","text":"adverse changes in the issuer’s industry and to general economic conditions. Issuers of junk","page_number":72,"box":{"x":150,"y":746,"width":686,"height":12}},{"id":"a3835e2b-0831-4d35-8974-121ffaf72fbd","block_type":"box","text":"bonds may be unable to meet their interest or principal payment obligations because of an","page_number":72,"box":{"x":150,"y":761,"width":669,"height":13}},{"id":"767998fd-1faf-43dd-9064-fe59294f2fda","block_type":"box","text":"economic downturn, specific issuer developments or the unavailability of additional financing.","page_number":72,"box":{"x":150,"y":777,"width":689,"height":12}},{"id":"88072c45-454c-4d2f-9bc3-9ceed56bba74","block_type":"box","text":"• The issuers of junk bonds may have a larger amount of outstanding debt relative to their assets","page_number":72,"box":{"x":117,"y":800,"width":740,"height":12}},{"id":"2ae06d61-4063-4d68-bf18-046d2524fe4b","block_type":"box","text":"than issuers of investment grade bonds. If the issuer experiences financial stress, it may be","page_number":72,"box":{"x":150,"y":815,"width":678,"height":12}},{"id":"82af823c-1560-40bb-b75e-b945966d80a5","block_type":"box","text":"unable to meet its debt obligations. The issuer’s ability to pay its debt obligations also may be","page_number":72,"box":{"x":150,"y":831,"width":697,"height":12}},{"id":"aa73b1ab-e129-46ba-9e7b-ed033970eec2","block_type":"box","text":"lessened by specific issuer developments, or the unavailability of additional financing. Issuers of","page_number":72,"box":{"x":150,"y":846,"width":717,"height":12}},{"id":"84b8b180-0fde-494e-8c1f-3434933b5ffd","block_type":"box","text":"high yield securities are often in the growth stage of their development and/or involved in a","page_number":72,"box":{"x":150,"y":862,"width":677,"height":12}},{"id":"0b1b9291-2567-46dc-a503-455d64351b05","block_type":"box","text":"reorganization or takeover.","page_number":72,"box":{"x":150,"y":877,"width":204,"height":12}},{"id":"de0deb92-e4f1-406b-a8f6-f6e7ce9df167","block_type":"box","text":"II-13","page_number":72,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"4f2fbc09-c8c1-4cae-967e-275787ffa7da","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":72,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"bdee33e3-9497-419f-b129-b19e3505c3e3","block_type":"box","text":"• Junk bonds are frequently ranked junior to claims by other creditors. If the issuer cannot meet its","page_number":73,"box":{"x":117,"y":87,"width":754,"height":12}},{"id":"8627339e-270a-44ee-9af4-35bbe917617e","block_type":"box","text":"obligations, the senior obligations are generally paid off before the junior obligations, which will","page_number":73,"box":{"x":150,"y":102,"width":706,"height":13}},{"id":"f51e62f0-64bb-4e79-876f-7ddfc9e1929b","block_type":"box","text":"potentially limit a Fund’s ability to fully recover principal or to receive interest payments when","page_number":73,"box":{"x":150,"y":118,"width":693,"height":12}},{"id":"efda71fd-2819-4227-bf3e-27cc9a179a21","block_type":"box","text":"senior securities are in default. Thus, investors in high yield securities have a lower degree of","page_number":73,"box":{"x":150,"y":134,"width":696,"height":12}},{"id":"9a2370e1-097e-4eae-9c5e-a13ac5cd3d93","block_type":"box","text":"protection with respect to principal and interest payments than do investors in higher rated","page_number":73,"box":{"x":150,"y":149,"width":674,"height":12}},{"id":"629e1fc0-96c9-4c30-bebf-62b67d2f511d","block_type":"box","text":"securities.","page_number":73,"box":{"x":150,"y":165,"width":80,"height":9}},{"id":"3508ed0e-45a7-4172-8f86-0b8b23c3180b","block_type":"box","text":"• Junk bonds frequently have redemption features that permit an issuer to repurchase the security","page_number":73,"box":{"x":117,"y":188,"width":753,"height":12}},{"id":"439e8f7a-25dc-4d2a-8159-90aaf867c99f","block_type":"box","text":"from a Fund before it matures. If an issuer redeems the junk bonds, a Fund may have to invest the","page_number":73,"box":{"x":149,"y":203,"width":738,"height":12}},{"id":"3b4271bb-c37b-45bf-8b09-3ca11ac18120","block_type":"box","text":"proceeds in bonds with lower yields and may lose income.","page_number":73,"box":{"x":150,"y":219,"width":437,"height":12}},{"id":"9ae3c1d8-a701-4625-9e18-46c2b1611595","block_type":"box","text":"• Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments","page_number":73,"box":{"x":117,"y":242,"width":753,"height":12}},{"id":"c59eb2eb-7c4b-4251-b50a-729bc32983ab","block_type":"box","text":"may have a greater impact on the prices of junk bonds than on those of other higher rated fixed","page_number":73,"box":{"x":150,"y":258,"width":713,"height":12}},{"id":"18e11333-2e17-4565-9d32-02a9f5078fca","block_type":"box","text":"income securities.","page_number":73,"box":{"x":150,"y":273,"width":139,"height":10}},{"id":"09b39f2e-1e47-4837-be68-a492ea87b4b4","block_type":"box","text":"• Junk bonds may be less liquid than higher rated fixed-income securities even under normal","page_number":73,"box":{"x":117,"y":296,"width":714,"height":12}},{"id":"1e5a7283-90c7-4ba9-b795-d25d53b271e8","block_type":"box","text":"economic conditions. Under certain economic and/or market conditions, a Fund may have difficulty","page_number":73,"box":{"x":150,"y":312,"width":738,"height":12}},{"id":"2e20fbf4-5635-4049-8681-d29e8632f435","block_type":"box","text":"disposing of certain high yield securities due to the limited number of investors in that sector of the","page_number":73,"box":{"x":150,"y":327,"width":734,"height":12}},{"id":"b6a21863-d895-4d3f-bb0d-e4d9f6d98057","block_type":"box","text":"market. There are fewer dealers in the junk bond market, and there may be significant differences","page_number":73,"box":{"x":150,"y":343,"width":730,"height":12}},{"id":"5c6cdab3-0e63-4aa8-b566-99fc62874148","block_type":"box","text":"in the prices quoted for junk bonds by the dealers, and such quotations may not be the actual","page_number":73,"box":{"x":150,"y":358,"width":698,"height":12}},{"id":"19679933-ac8d-45d5-bbe8-7cc53561dd07","block_type":"box","text":"prices available for a purchase or sale. Because junk bonds are less liquid than higher rated","page_number":73,"box":{"x":150,"y":374,"width":688,"height":12}},{"id":"30e045f7-8562-4ae6-849c-83dace1b13dc","block_type":"box","text":"bonds, judgment may play a greater role in valuing certain of a Fund’s portfolio securities than in","page_number":73,"box":{"x":150,"y":389,"width":720,"height":12}},{"id":"4bc970b8-e549-40c8-8c97-e3a914cabd65","block_type":"box","text":"the case of securities trading in a more liquid market.","page_number":73,"box":{"x":150,"y":405,"width":398,"height":12}},{"id":"c1f01eea-de9b-4d25-809c-5b8868af0d61","block_type":"box","text":"• The secondary markets for high yield securities are not as liquid as the secondary markets for","page_number":73,"box":{"x":117,"y":428,"width":734,"height":12}},{"id":"4e07f8cd-1be2-41c3-8494-8b3c3f4ebf4a","block_type":"box","text":"higher rated securities. The secondary markets for high yield securities are concentrated in","page_number":73,"box":{"x":150,"y":444,"width":680,"height":12}},{"id":"b25e25b1-9045-47d1-8f32-18b5ce7ba4dd","block_type":"box","text":"relatively few market makers and participants in the markets are mostly institutional investors,","page_number":73,"box":{"x":150,"y":459,"width":699,"height":12}},{"id":"9f23ff9d-8da8-4c9e-8e24-fbd5f7098319","block_type":"box","text":"including insurance companies, banks, other financial institutions and mutual funds. In addition,","page_number":73,"box":{"x":150,"y":475,"width":712,"height":12}},{"id":"b1ec65cf-e3a9-4055-9ed2-0f289e5962bf","block_type":"box","text":"the trading volume for high yield securities is generally lower than that for higher rated securities","page_number":73,"box":{"x":150,"y":490,"width":718,"height":12}},{"id":"ae5599a3-0e3f-456d-a014-9d8a46fc3b51","block_type":"box","text":"and the secondary markets could contract under adverse market or economic conditions","page_number":73,"box":{"x":150,"y":506,"width":662,"height":12}},{"id":"7569cbf6-9849-4144-a3a9-9e046d58410b","block_type":"box","text":"independent of any specific adverse changes in the condition of a particular issuer. Under certain","page_number":73,"box":{"x":150,"y":521,"width":725,"height":12}},{"id":"e433f3db-f9bd-4393-a57c-a2d8033b7a33","block_type":"box","text":"economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":73,"box":{"x":150,"y":537,"width":695,"height":12}},{"id":"fa30899f-cdb9-4572-b240-bc47261d8427","block_type":"box","text":"securities due to the limited number of investors in that sector of the market. An illiquid secondary","page_number":73,"box":{"x":150,"y":552,"width":728,"height":12}},{"id":"823933e2-89cd-4ef4-90f2-12a299795796","block_type":"box","text":"market may adversely affect the market price of the high yield security, which may result in","page_number":73,"box":{"x":150,"y":568,"width":678,"height":12}},{"id":"08c7e150-4704-4716-9688-c75baec5cf28","block_type":"box","text":"increased difficulty selling the particular issue and obtaining accurate market quotations on the","page_number":73,"box":{"x":150,"y":583,"width":706,"height":12}},{"id":"194ac8f7-f369-4308-b1b9-487d9fe364e4","block_type":"box","text":"issue when valuing a Fund’s assets. Market quotations on high yield securities are available only","page_number":73,"box":{"x":150,"y":599,"width":722,"height":12}},{"id":"494129f4-a3ae-435d-81ce-7f795286a407","block_type":"box","text":"from a limited number of dealers, and such quotations may not be the actual prices available for a","page_number":73,"box":{"x":149,"y":614,"width":731,"height":12}},{"id":"bc190c52-e50b-4435-8c5c-4d8be2fce383","block_type":"box","text":"purchase or sale. When the secondary market for high yield securities becomes more illiquid, or in","page_number":73,"box":{"x":150,"y":630,"width":734,"height":12}},{"id":"5decc9e8-67ae-4c29-a7cf-bebbe10dbf9e","block_type":"box","text":"the absence of readily available market quotations for such securities, the relative lack of reliable","page_number":73,"box":{"x":150,"y":645,"width":723,"height":12}},{"id":"bb858df6-15c6-4fba-857d-c3ffd0282c89","block_type":"box","text":"objective data makes it more difficult to value a Fund’s securities, and judgment plays a more","page_number":73,"box":{"x":150,"y":661,"width":691,"height":12}},{"id":"36a1e0fb-e4fd-414b-b557-f0fe279a581a","block_type":"box","text":"important role in determining such valuations.","page_number":73,"box":{"x":150,"y":676,"width":337,"height":12}},{"id":"211b1f5c-31d7-49fe-9c61-af8efa553ed1","block_type":"box","text":"• A Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate","page_number":73,"box":{"x":117,"y":699,"width":757,"height":13}},{"id":"a666bb9e-5d02-42a2-94d9-afe8b4cd8d38","block_type":"box","text":"new terms with a defaulting issuer.","page_number":73,"box":{"x":150,"y":715,"width":256,"height":12}},{"id":"2d26d09a-7a0b-4cd1-9054-23caf2749a8e","block_type":"box","text":"• The junk bond markets may react strongly to adverse news about an issuer or the economy, or to","page_number":73,"box":{"x":117,"y":738,"width":756,"height":12}},{"id":"c75eafc3-1290-4674-8d88-e6d6253853be","block_type":"box","text":"the perception or expectation of adverse news, whether or not it is based on fundamental analysis.","page_number":73,"box":{"x":150,"y":754,"width":731,"height":12}},{"id":"a7995267-3752-4270-bbb6-249cf617db17","block_type":"box","text":"Additionally, prices for high yield securities may be affected by legislative and regulatory","page_number":73,"box":{"x":149,"y":769,"width":654,"height":12}},{"id":"373b7d6f-0dcc-4b8e-b998-0b5ca8e4e9df","block_type":"box","text":"developments. These developments could adversely affect a Fund’s NAV and investment","page_number":73,"box":{"x":150,"y":785,"width":664,"height":12}},{"id":"89e2bba8-6596-45d2-8019-087636e2b21a","block_type":"box","text":"practices, the secondary market for high yield securities, the financial condition of issuers of these","page_number":73,"box":{"x":150,"y":800,"width":726,"height":12}},{"id":"eb6cd587-de90-437a-a6f4-1804e757ec93","block_type":"box","text":"securities and the value and liquidity of outstanding high yield securities, especially in a thinly","page_number":73,"box":{"x":150,"y":816,"width":690,"height":12}},{"id":"2e1b2ac6-bbaa-45a6-9b2b-0d821829071a","block_type":"box","text":"traded market. For example, federal legislation requiring the divestiture by federally insured","page_number":73,"box":{"x":150,"y":831,"width":681,"height":12}},{"id":"2ef03088-9f5d-4c1e-aa49-3a433774cb06","block_type":"box","text":"savings and loan associations of their investments in high yield bonds and limiting the deductibility","page_number":73,"box":{"x":150,"y":847,"width":733,"height":12}},{"id":"7620c619-e47d-4044-ac0f-fcdb5c28880c","block_type":"box","text":"of interest by certain corporate issuers of high yield bonds adversely affected the market in the","page_number":73,"box":{"x":150,"y":862,"width":706,"height":12}},{"id":"f5f33a59-0499-4413-b932-f1112f6139a2","block_type":"box","text":"past.","page_number":73,"box":{"x":150,"y":878,"width":41,"height":12}},{"id":"ceccf12a-6193-477d-9cdf-230964d517db","block_type":"box","text":"II-14","page_number":73,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"ee0c58a5-4fb3-4989-ac00-82e9fbd63e32","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":73,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"292f10ca-d254-4e96-9229-6bcc597276e4","block_type":"box","text":"• The rating assigned by a rating agency evaluates the issuing agency’s assessment of the safety of","page_number":74,"box":{"x":117,"y":87,"width":770,"height":12}},{"id":"4efd1357-28cf-4794-9424-cfb15cfb90a6","block_type":"box","text":"a non-investment grade security’s principal and interest payments, but does not address market","page_number":74,"box":{"x":150,"y":103,"width":716,"height":12}},{"id":"166a90eb-10e7-4923-a849-87de2d098fe7","block_type":"box","text":"value risk. Because such ratings of the ratings agencies may not always reflect current conditions","page_number":74,"box":{"x":150,"y":118,"width":728,"height":12}},{"id":"22b967e7-81a7-4918-b450-e04c8dbea22f","block_type":"box","text":"and events, in addition to using recognized rating agencies and other sources, the Manager or","page_number":74,"box":{"x":150,"y":134,"width":705,"height":12}},{"id":"19e860cd-1405-4db5-99f8-94afb4630458","block_type":"box","text":"sub-adviser performs its own analysis of the issuers whose non-investment grade securities a","page_number":74,"box":{"x":150,"y":149,"width":700,"height":12}},{"id":"43059743-28f6-4bd0-a417-b9c70a3217ec","block_type":"box","text":"Fund holds. Because of this, the Fund’s performance may depend more on the Manager’s or","page_number":74,"box":{"x":151,"y":165,"width":693,"height":12}},{"id":"beacd1d9-780b-4950-b800-92e24f78186c","block_type":"box","text":"sub-adviser’s own credit analysis than in the case of mutual funds investing in higher-rated","page_number":74,"box":{"x":150,"y":180,"width":678,"height":12}},{"id":"ea62841c-5597-49ab-b988-4f9456699f7b","block_type":"box","text":"securities.","page_number":74,"box":{"x":150,"y":196,"width":80,"height":9}},{"id":"f8871e92-6770-456e-bae1-8882611d2061","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as","page_number":74,"box":{"x":117,"y":227,"width":742,"height":12}},{"id":"2991ab57-f267-454e-96f6-82b6fdacce97","block_type":"box","text":"those relating to the creditworthiness of issuers, the ratings and performance of the securities, the","page_number":74,"box":{"x":116,"y":242,"width":731,"height":12}},{"id":"f9a93e1b-7867-47ae-ae66-0c28a48409f4","block_type":"box","text":"protections afforded the securities and the diversity of the Fund. The Manager or sub-adviser","page_number":74,"box":{"x":117,"y":258,"width":694,"height":12}},{"id":"46269c6d-37d8-4073-808d-85fe852d06e9","block_type":"box","text":"continuously monitors the issuers of non-investment grade securities held by the Fund for their ability","page_number":74,"box":{"x":116,"y":273,"width":755,"height":12}},{"id":"027ac2bd-4a4c-4778-a3d8-92947e112f01","block_type":"box","text":"to make required principal and interest payments, as well as in an effort to control the liquidity of the","page_number":74,"box":{"x":116,"y":289,"width":746,"height":12}},{"id":"b8b4ce6a-3b72-4332-994c-ed61b0fe3be2","block_type":"box","text":"Fund so that it can meet redemption requests. If a security’s rating is reduced below the minimum","page_number":74,"box":{"x":117,"y":304,"width":729,"height":12}},{"id":"9df3dd43-b843-4a81-986d-6c96136d4b25","block_type":"box","text":"credit rating that is permitted for a Fund, the Fund’s adviser or sub-adviser will consider whether the","page_number":74,"box":{"x":116,"y":320,"width":745,"height":12}},{"id":"143a6746-a715-48a1-b5a0-76b03a8221d0","block_type":"box","text":"Fund should continue to hold the security.","page_number":74,"box":{"x":117,"y":335,"width":315,"height":12}},{"id":"aa289006-37c9-4109-af80-3a5e53886e6d","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net","page_number":74,"box":{"x":117,"y":366,"width":718,"height":12}},{"id":"40de2e34-f71f-4316-96be-cf22c8475134","block_type":"box","text":"redemptions, the Fund could be forced to sell its holdings without regard to the investment merits,","page_number":74,"box":{"x":117,"y":382,"width":729,"height":12}},{"id":"f77bd949-3d72-41f1-b6be-9db0b89e4147","block_type":"box","text":"thereby decreasing the assets upon which the Fund’s rate of return is based.","page_number":74,"box":{"x":116,"y":397,"width":575,"height":12}},{"id":"94f80621-f50a-46f7-9835-7eeee423e466","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons,","page_number":74,"box":{"x":116,"y":428,"width":733,"height":12}},{"id":"d882f516-a844-4702-88bd-770124b5a767","block_type":"box","text":"such as higher investment research costs and higher commission costs.","page_number":74,"box":{"x":116,"y":444,"width":540,"height":12}},{"id":"47e0f3aa-c00f-495f-a953-cc45dd719bab","block_type":"box","text":"Mezzanine Investments.","page_number":74,"box":{"x":116,"y":475,"width":179,"height":9}},{"id":"998283be-166b-4ad6-a944-c416e27b5f71","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a","page_number":74,"box":{"x":297,"y":475,"width":579,"height":12}},{"id":"e877034c-4d96-4655-93b0-09371d2367c7","block_type":"box","text":"specific credit quality, may invest in certain high yield securities known as mezzanine investments,","page_number":74,"box":{"x":116,"y":490,"width":735,"height":12}},{"id":"1f93c92e-0e47-4956-9f42-b9361739468d","block_type":"box","text":"which are subordinated debt securities which are generally issued in private placements in connection","page_number":74,"box":{"x":116,"y":506,"width":762,"height":12}},{"id":"e562310d-787c-4cab-aeca-e558bee02111","block_type":"box","text":"with an equity security (","page_number":74,"box":{"x":116,"y":521,"width":175,"height":12}},{"id":"9043a5a6-e97e-4645-a3eb-d0e0827be24d","block_type":"box","text":"e.g.","page_number":74,"box":{"x":292,"y":524,"width":26,"height":9}},{"id":"c0d4197f-8a0a-4878-bd57-78383f8133ba","block_type":"box","text":", with attached warrants). Such mezzanine investments may be issued with","page_number":74,"box":{"x":321,"y":521,"width":563,"height":12}},{"id":"9924e82d-aa60-4c37-bbf5-b8647960c79e","block_type":"box","text":"or without registration rights. Similar to other high yield securities, maturities of mezzanine investments","page_number":74,"box":{"x":116,"y":537,"width":767,"height":12}},{"id":"420ba3e3-aabf-4079-b6d8-4160c04174ae","block_type":"box","text":"are typically seven to ten years, but the expected average life is significantly shorter at three to five","page_number":74,"box":{"x":116,"y":552,"width":738,"height":12}},{"id":"d310621a-f32e-435e-bf0e-fac94d2a4d0c","block_type":"box","text":"years. Mezzanine investments are usually unsecured and subordinate to other obligations of the","page_number":74,"box":{"x":116,"y":568,"width":719,"height":12}},{"id":"61d48ba3-7837-4b3f-9439-7e0f1abcd00d","block_type":"box","text":"issuer.","page_number":74,"box":{"x":117,"y":583,"width":53,"height":10}},{"id":"afbf453f-e2d7-416f-83d5-8074bd67c19c","block_type":"box","text":"Pay-in-kind Bonds.","page_number":74,"box":{"x":116,"y":614,"width":139,"height":12}},{"id":"2c73d34e-8ad6-42dd-9575-f618bcd825ed","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which","page_number":74,"box":{"x":257,"y":614,"width":631,"height":12}},{"id":"7ee7c373-647b-4265-82b2-ffb2fb4f7741","block_type":"box","text":"pay interest through the issuance of additional debt or equity securities. Similar to zero coupon","page_number":74,"box":{"x":117,"y":630,"width":706,"height":12}},{"id":"56c631bd-ad40-4021-9a23-0a85b7dcd45a","block_type":"box","text":"obligations, pay-in-kind bonds also carry additional risk as holders of these types of securities realize","page_number":74,"box":{"x":116,"y":645,"width":753,"height":12}},{"id":"6225d7ca-0169-4c56-b0b9-22526e80c49d","block_type":"box","text":"no cash until the cash payment date unless a portion of such securities is sold and, if the issuer","page_number":74,"box":{"x":117,"y":661,"width":707,"height":12}},{"id":"8b39838b-d5a3-4559-8116-b221f5b2e613","block_type":"box","text":"defaults, a Fund may obtain no return at all on its investment. The market price of pay-in-kind bonds is","page_number":74,"box":{"x":116,"y":676,"width":759,"height":12}},{"id":"51148940-35f3-4cd8-814b-c39db0b9efbc","block_type":"box","text":"affected by interest rate changes to a greater extent, and therefore tends to be more volatile, than that","page_number":74,"box":{"x":116,"y":692,"width":758,"height":12}},{"id":"c9975fae-e4c3-48eb-9b94-0994f66ed1b0","block_type":"box","text":"of securities which pay interest in cash. Additionally, current U.S. federal tax law requires the holder of","page_number":74,"box":{"x":116,"y":707,"width":759,"height":12}},{"id":"03969731-6d69-47bd-ab5e-8449dee3e9e3","block_type":"box","text":"pay-in-kind bonds to accrue income with respect to these securities prior to the receipt of cash","page_number":74,"box":{"x":117,"y":723,"width":698,"height":12}},{"id":"74a6ef27-b95e-4af7-b11b-fe50e0a62b8f","block_type":"box","text":"payments. To maintain its qualification as a regulated investment company and avoid liability for U.S.","page_number":74,"box":{"x":117,"y":738,"width":747,"height":12}},{"id":"712ffdc9-7dc7-4efb-8c90-c3e6916c1984","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect","page_number":74,"box":{"x":116,"y":754,"width":765,"height":12}},{"id":"afedc39e-aec2-4484-b2d0-f33681d53069","block_type":"box","text":"to these securities and may have to dispose of portfolio securities under disadvantageous","page_number":74,"box":{"x":116,"y":769,"width":665,"height":12}},{"id":"61e0442d-75b6-45a3-8dbe-2f6d493b714b","block_type":"box","text":"circumstances in order to generate cash to satisfy these distribution requirements.","page_number":74,"box":{"x":116,"y":785,"width":608,"height":12}},{"id":"628eed9f-64e8-489a-b59b-f174823afe2a","block_type":"box","text":"Supranational Entities.","page_number":74,"box":{"x":117,"y":816,"width":165,"height":12}},{"id":"85ef8d92-776e-4034-93d6-8fb134c64825","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of","page_number":74,"box":{"x":289,"y":816,"width":555,"height":12}},{"id":"fcdf1c39-dce7-4c3e-a913-99c3ef9e9ca4","block_type":"box","text":"such entities include the International Bank for Reconstruction and Development (the World Bank), the","page_number":74,"box":{"x":116,"y":831,"width":766,"height":12}},{"id":"ca517682-93fa-43f5-b144-ffc7b5a38111","block_type":"box","text":"European Steel and Coal Community, the Asian Development Bank and the Inter-American","page_number":74,"box":{"x":117,"y":847,"width":683,"height":12}},{"id":"561b2c90-8828-4237-8841-2a37b4c8999b","block_type":"box","text":"Development Bank. The government members, or “stockholders,” usually make initial capital","page_number":74,"box":{"x":117,"y":862,"width":691,"height":12}},{"id":"04705f21-7fee-47e3-abfe-7809ada1a9cd","block_type":"box","text":"contributions to the supranational entity and in many cases are committed to make additional capital","page_number":74,"box":{"x":116,"y":878,"width":748,"height":12}},{"id":"8f1ca3ec-1289-4399-b17c-173a82f4e405","block_type":"box","text":"II-15","page_number":74,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"c3f7c518-9443-4f85-a916-09afcd762ebd","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":74,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c4019cf1-7132-4eaa-b12f-c4d164e666d0","block_type":"box","text":"contributions if the supranational entity is unable to repay its borrowings. There is no guarantee that","page_number":75,"box":{"x":116,"y":87,"width":744,"height":12}},{"id":"b3d496fe-8e63-4b7d-9c92-e8893aaf4cfb","block_type":"box","text":"one or more stockholders of a supranational entity will continue to make any necessary additional","page_number":75,"box":{"x":116,"y":102,"width":729,"height":13}},{"id":"b4747096-7b0c-4717-bde7-b32f5965338f","block_type":"box","text":"capital contributions. If such contributions are not made, the entity may be unable to pay interest or","page_number":75,"box":{"x":116,"y":118,"width":739,"height":12}},{"id":"3c9c2d3b-ddf7-4b71-b687-342183a8af79","block_type":"box","text":"repay principal on its debt securities, and a Fund may lose money on such investments.","page_number":75,"box":{"x":117,"y":134,"width":655,"height":12}},{"id":"0efe63d2-066e-4c33-a84a-d0fe24c61eea","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":75,"box":{"x":116,"y":165,"width":367,"height":12}},{"id":"6efb05b6-f226-4533-b853-972dbe75d39b","block_type":"box","text":"Certain Funds may invest in the securities of foreign","page_number":75,"box":{"x":484,"y":165,"width":397,"height":12}},{"id":"0efce999-fbf3-47a4-98fa-9a2e7ca9f9bc","block_type":"box","text":"issuers in the form of Depositary Receipts or other securities convertible into securities of foreign","page_number":75,"box":{"x":117,"y":180,"width":722,"height":12}},{"id":"32f78131-bbaa-4278-a58c-9e0a43ccd342","block_type":"box","text":"issuers. Depositary Receipts may not necessarily be denominated in the same currency as the","page_number":75,"box":{"x":117,"y":196,"width":707,"height":12}},{"id":"e916a509-b062-4fd3-a574-198b986d6e1d","block_type":"box","text":"underlying securities into which they may be converted. The Fund may invest in both sponsored and","page_number":75,"box":{"x":117,"y":211,"width":749,"height":12}},{"id":"fd28e25e-2b83-4f7f-b86e-dd0229878fb3","block_type":"box","text":"unsponsored American Depositary Receipts (“ADRs”), European Depositary Receipts (“EDRs”), Global","page_number":75,"box":{"x":117,"y":227,"width":769,"height":12}},{"id":"0e5f09f3-5959-467d-b171-225d235ac5ca","block_type":"box","text":"Depositary Receipts (“GDRs”) and other similar global instruments. ADRs typically are issued by an","page_number":75,"box":{"x":117,"y":242,"width":743,"height":12}},{"id":"0510d3d8-eb53-4ecc-80d3-a21ab24cf7de","block_type":"box","text":"American bank or trust company and evidence ownership of underlying securities issued by a foreign","page_number":75,"box":{"x":116,"y":258,"width":756,"height":12}},{"id":"30a0b1fc-2c33-42f7-a4ab-947cf275120a","block_type":"box","text":"corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are receipts","page_number":75,"box":{"x":116,"y":273,"width":757,"height":12}},{"id":"478575d2-6606-4eec-923d-9030b41eb4ed","block_type":"box","text":"issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either","page_number":75,"box":{"x":117,"y":289,"width":739,"height":12}},{"id":"c8357754-f860-43ea-bc94-14b6c5ce32ce","block_type":"box","text":"foreign or domestic underlying securities. GDRs are depositary receipts structured like global debt","page_number":75,"box":{"x":116,"y":304,"width":732,"height":12}},{"id":"df0612bf-3e28-41e7-b2c2-b1a184ce4449","block_type":"box","text":"issues to facilitate trading on an international basis. In addition to investment risks associated with the","page_number":75,"box":{"x":117,"y":320,"width":758,"height":12}},{"id":"9fa5133c-ac41-480f-b47c-d450f740c17a","block_type":"box","text":"underlying issuer, Depositary Receipts expose a Fund to additional risks associated with the","page_number":75,"box":{"x":117,"y":335,"width":689,"height":12}},{"id":"4180029f-6f72-4d1b-b946-017d21a23aea","block_type":"box","text":"non-uniform terms that apply to Depositary Receipt programs, credit exposure to the depository bank","page_number":75,"box":{"x":117,"y":351,"width":754,"height":12}},{"id":"be8b5b0c-06d4-4c6c-b341-25f2525dce79","block_type":"box","text":"and to the sponsors and other parties with whom the depository bank establishes the programs,","page_number":75,"box":{"x":116,"y":366,"width":716,"height":12}},{"id":"c15c6b17-2e24-46dd-842d-ba28225e86f9","block_type":"box","text":"currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR, EDR and","page_number":75,"box":{"x":116,"y":382,"width":748,"height":12}},{"id":"eca62a6b-d915-4812-bce5-69f4e943524f","block_type":"box","text":"GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":75,"box":{"x":117,"y":397,"width":771,"height":12}},{"id":"ec836924-0940-45be-89b0-da4c5d35c153","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored","page_number":75,"box":{"x":116,"y":413,"width":701,"height":12}},{"id":"8ecbf925-a460-4928-a1de-df93f699bf0d","block_type":"box","text":"programs and do not provide holders with many of the shareholder benefits that come from investing in","page_number":75,"box":{"x":117,"y":428,"width":769,"height":12}},{"id":"d8772bc9-da64-4e8d-9134-67edadd70523","block_type":"box","text":"a sponsored Depositary Receipt. Available information concerning the issuer may not be as current as","page_number":75,"box":{"x":116,"y":444,"width":764,"height":12}},{"id":"06066b47-f979-4429-9657-14fb34d1ab2a","block_type":"box","text":"for sponsored ADRs, EDRs and GDRs, and the prices of unsponsored ADRs, EDRs and GDRs may","page_number":75,"box":{"x":116,"y":459,"width":750,"height":12}},{"id":"e3e5cbed-e392-4d84-9ad9-2e262ae6ed17","block_type":"box","text":"be more volatile than if such instruments were sponsored by the issuer. Depositary Receipts are","page_number":75,"box":{"x":117,"y":475,"width":718,"height":12}},{"id":"332e7c7e-6b22-40fa-9ccb-ade13b8039f3","block_type":"box","text":"generally subject to the same risks as the foreign securities that they evidence or into which they may","page_number":75,"box":{"x":116,"y":490,"width":759,"height":12}},{"id":"c7d83be3-9c5e-4e22-920e-6967d6de0e38","block_type":"box","text":"be converted. Investments in ADRs, EDRs and GDRs present additional investment considerations as","page_number":75,"box":{"x":117,"y":506,"width":763,"height":12}},{"id":"3e92cf8c-b9e0-4ae9-a09d-c1a83b06c3fd","block_type":"box","text":"described under “Foreign Investment Risks.”","page_number":75,"box":{"x":116,"y":521,"width":336,"height":12}},{"id":"a8451997-5946-4a3e-8ecf-afa3d0726adb","block_type":"box","text":"Derivatives.","page_number":75,"box":{"x":116,"y":560,"width":99,"height":9}},{"id":"2fb977b0-3c56-4c77-ad81-5421cc473652","block_type":"box","text":"General.","page_number":75,"box":{"x":117,"y":583,"width":68,"height":10}},{"id":"28081a38-2213-4ab0-80bf-c5cde801c237","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments","page_number":75,"box":{"x":186,"y":583,"width":675,"height":12}},{"id":"6c29681d-67de-456a-9703-743ceff1ad65","block_type":"box","text":"that derive their value from one or more securities, commodities (such as gold or oil), currencies,","page_number":75,"box":{"x":116,"y":599,"width":722,"height":12}},{"id":"a26a374d-f769-4be5-a753-945b784ba467","block_type":"box","text":"interest rates, credit events or indices (a measure of value or rates, such as the S&P 500 Index or the","page_number":75,"box":{"x":117,"y":614,"width":758,"height":12}},{"id":"8457873c-b372-4d8c-a2b4-00f983c7e81e","block_type":"box","text":"prime lending rate) or other reference asset. Derivatives may allow a Fund to increase or decrease the","page_number":75,"box":{"x":117,"y":630,"width":765,"height":12}},{"id":"33c87be4-3030-418b-b5e8-d930cced60da","block_type":"box","text":"level of risk to which the Fund is exposed more quickly and efficiently than with other transactions.","page_number":75,"box":{"x":117,"y":645,"width":732,"height":12}},{"id":"f83fc17d-e50c-40d3-b48c-523985a72adb","block_type":"box","text":"Certain Funds may use derivatives to maintain a portion of their long and short positions. Unless","page_number":75,"box":{"x":117,"y":661,"width":714,"height":12}},{"id":"e13ebbf5-65a4-4918-8a43-db8c7f1bb6fb","block_type":"box","text":"otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset class it is","page_number":75,"box":{"x":116,"y":676,"width":724,"height":12}},{"id":"2945fe3d-351c-48bd-8e81-487a95c7ea52","block_type":"box","text":"prohibited by its investment restrictions from purchasing directly. As described below, derivatives can","page_number":75,"box":{"x":117,"y":692,"width":748,"height":12}},{"id":"0773c62b-bda7-46c7-974b-0969d768b712","block_type":"box","text":"be used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":75,"box":{"x":117,"y":707,"width":747,"height":12}},{"id":"e65c7c11-2063-4019-8069-0e37eb4d8fc7","block_type":"box","text":"i.e.","page_number":75,"box":{"x":116,"y":723,"width":20,"height":9}},{"id":"3f0cdfd8-c42d-40a2-930a-32524d81342b","block_type":"box","text":", the payment obligations of derivatives contracts are netted against one another with the Fund","page_number":75,"box":{"x":140,"y":723,"width":701,"height":12}},{"id":"04d0c62c-6790-4f67-9849-4bd70ea45052","block_type":"box","text":"receiving or paying, as the case may be, only the net amount of the two payment streams.","page_number":75,"box":{"x":117,"y":738,"width":667,"height":12}},{"id":"c72d6bdb-fe10-435a-bd7c-34474c587f12","block_type":"box","text":"Hedging.","page_number":75,"box":{"x":116,"y":769,"width":65,"height":12}},{"id":"8398af85-5da8-485e-8806-9bc1492e1e5e","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset","page_number":75,"box":{"x":189,"y":769,"width":680,"height":12}},{"id":"05d6d2f3-da44-4211-ac67-799fc4c1630b","block_type":"box","text":"the risks associated with other Fund holdings. Losses on other investments may be substantially","page_number":75,"box":{"x":116,"y":785,"width":716,"height":12}},{"id":"51a3b115-89b2-49ba-b180-ab610ba7613e","block_type":"box","text":"reduced by gains on a derivative that reacts in an opposite manner to market movements. Although","page_number":75,"box":{"x":117,"y":800,"width":737,"height":12}},{"id":"53385643-bf69-41da-aef2-d7bbfe3deabe","block_type":"box","text":"hedging may reduce losses, it may also reduce or eliminate gains. In addition, hedging may cause","page_number":75,"box":{"x":117,"y":816,"width":728,"height":12}},{"id":"c0a9c731-6e3e-4943-9a5c-c55b2c459a84","block_type":"box","text":"losses if the market moves in an unanticipated manner, or if the cost of the derivative outweighs the","page_number":75,"box":{"x":117,"y":831,"width":744,"height":12}},{"id":"a6634f33-29a6-4476-a7d7-09c072d9e6f6","block_type":"box","text":"benefit of the hedge. The effectiveness of hedging may be reduced by correlation risk,","page_number":75,"box":{"x":117,"y":847,"width":643,"height":12}},{"id":"4de97d44-a114-4649-84eb-5e9ee1db8ffb","block_type":"box","text":"i.e.","page_number":75,"box":{"x":761,"y":847,"width":20,"height":9}},{"id":"4d27ac11-22f3-4158-b295-af70df346a2f","block_type":"box","text":",","page_number":75,"box":{"x":784,"y":855,"width":2,"height":3}},{"id":"08032522-56fe-4c71-aff6-6e384f7a9388","block_type":"box","text":"the risk that","page_number":75,"box":{"x":793,"y":847,"width":91,"height":9}},{"id":"8a08484f-a861-4fbd-8339-7c48898a626e","block_type":"box","text":"changes in the value of the derivative will not match those of the holdings being hedged as expected","page_number":75,"box":{"x":116,"y":862,"width":751,"height":12}},{"id":"23afd3f3-1415-4495-b6f9-671b0fb87c92","block_type":"box","text":"by a Fund, which may result in additional losses to the Fund. The inability to close or offset derivatives","page_number":75,"box":{"x":117,"y":878,"width":762,"height":12}},{"id":"84cae0f2-f507-40e3-b07c-27910c6fe1ff","block_type":"box","text":"II-16","page_number":75,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"86ad13d0-7d19-49f4-8614-91e8b86f6b25","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":75,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3980c0fd-44be-4510-9be5-5b6b90df4e39","block_type":"box","text":"could also reduce the effectiveness of a Fund’s hedging. There is no assurance that a Fund’s hedging","page_number":76,"box":{"x":116,"y":87,"width":762,"height":12}},{"id":"791df6da-49c5-4316-bcb4-799cd29807f4","block_type":"box","text":"will be effective. No Fund is required to use derivatives to hedge.","page_number":76,"box":{"x":116,"y":102,"width":486,"height":13}},{"id":"8e7d4d80-fb7d-459d-a520-cfe178154b4b","block_type":"box","text":"Speculation.","page_number":76,"box":{"x":117,"y":131,"width":90,"height":12}},{"id":"08e4117f-5476-4f04-a828-8d8cc1550b46","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance","page_number":76,"box":{"x":208,"y":131,"width":638,"height":12}},{"id":"f3d3b5f7-0d9d-457c-97b4-13f68e5277f8","block_type":"box","text":"returns. The use of a derivative is speculative if the Fund is primarily seeking to achieve gains, rather","page_number":76,"box":{"x":117,"y":146,"width":753,"height":12}},{"id":"27ffbb10-108f-4083-9078-25ba175d9e1f","block_type":"box","text":"than offset the risk of other positions. To the extent a Fund invests in a derivative for speculative","page_number":76,"box":{"x":116,"y":162,"width":719,"height":12}},{"id":"7719a7b5-548c-43e9-aadd-6b87e94af540","block_type":"box","text":"purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be","page_number":76,"box":{"x":117,"y":177,"width":769,"height":12}},{"id":"e6783f84-1809-485f-8f39-b647b5a78c28","block_type":"box","text":"greater than the derivative’s cost, and the potential for loss in certain cases may be unlimited.","page_number":76,"box":{"x":116,"y":193,"width":699,"height":12}},{"id":"6c584019-2edd-403c-9d86-7ffe538538fe","block_type":"box","text":"Regulation of Derivatives.","page_number":76,"box":{"x":116,"y":227,"width":196,"height":12}},{"id":"ee416d69-3d64-4acf-983c-950fa6e2c1ce","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":76,"box":{"x":116,"y":249,"width":352,"height":12}},{"id":"8406aa68-ee4c-40bd-96ef-fb2a43285736","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits","page_number":76,"box":{"x":469,"y":249,"width":416,"height":12}},{"id":"3abcd298-dfb0-4c99-8dea-e72a8bcd08f0","block_type":"box","text":"a Fund to enter into Derivatives Transactions (as defined below) and certain other transactions","page_number":76,"box":{"x":116,"y":265,"width":708,"height":12}},{"id":"c07c280c-029f-48f4-b08c-d2d611cf873a","block_type":"box","text":"notwithstanding the restrictions on the issuance of “senior securities” under Section 18 of the","page_number":76,"box":{"x":117,"y":280,"width":692,"height":12}},{"id":"e4493230-313a-4094-9170-0c09d3f04a26","block_type":"box","text":"Investment Company Act. Section 18 of the Investment Company Act, among other things, prohibits","page_number":76,"box":{"x":117,"y":296,"width":747,"height":12}},{"id":"7aca99c1-0243-4cf7-8865-eb0c413e4b71","block_type":"box","text":"open-end funds, including the Funds, from issuing or selling any “senior security,” other than borrowing","page_number":76,"box":{"x":116,"y":311,"width":769,"height":12}},{"id":"c9bf0be5-5d8f-4a79-a083-e56574c7b433","block_type":"box","text":"from a bank (subject to a requirement to maintain 300% “asset coverage”).","page_number":76,"box":{"x":116,"y":327,"width":560,"height":12}},{"id":"502e1910-ae03-447c-a370-2d058cecfd0c","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap","page_number":76,"box":{"x":117,"y":355,"width":761,"height":12}},{"id":"96d8087f-c4e0-4587-90b8-4d4401f00525","block_type":"box","text":"(including a contract for differences), futures contract, forward contract, option (excluding purchased","page_number":76,"box":{"x":117,"y":370,"width":747,"height":13}},{"id":"cb20a6ee-fafc-43b0-abfe-fe922537f1c4","block_type":"box","text":"options), any combination of the foregoing, or any similar instrument, under which a Fund is or may be","page_number":76,"box":{"x":116,"y":386,"width":764,"height":12}},{"id":"4548d43d-d0fc-4614-a082-c27a40ad67bd","block_type":"box","text":"required to make any payment or delivery of cash or other assets during the life of the instrument or at","page_number":76,"box":{"x":117,"y":401,"width":763,"height":13}},{"id":"a1885dcd-d107-460f-b5fe-7fa4b55b6018","block_type":"box","text":"maturity or early termination, whether as margin or settlement payment or otherwise; (2) any short sale","page_number":76,"box":{"x":117,"y":417,"width":767,"height":12}},{"id":"08e24857-3f81-4116-b356-185c2fb75d9d","block_type":"box","text":"borrowing; (3) reverse repurchase agreements and similar financing transactions (e.g., recourse and","page_number":76,"box":{"x":117,"y":432,"width":750,"height":13}},{"id":"71ddf1fb-74fd-4d3e-a504-1b3cc88adc58","block_type":"box","text":"non-recourse tender option bonds, and borrowed bonds), if a Fund elects to treat all of these","page_number":76,"box":{"x":117,"y":448,"width":691,"height":12}},{"id":"38b41082-665a-481a-9d72-578b8b1c639b","block_type":"box","text":"transactions as Derivatives Transactions under Rule 18f-4; and (4) when-issued or forward-settling","page_number":76,"box":{"x":116,"y":463,"width":738,"height":13}},{"id":"dd945b05-36e4-41f6-b3c5-e7fba02d869e","block_type":"box","text":"securities (e.g., firm and standby commitments, including to-be-announced (“TBA”) commitments, and","page_number":76,"box":{"x":116,"y":479,"width":763,"height":12}},{"id":"0a6daaa4-0820-4526-9fcd-03ff4bc5210a","block_type":"box","text":"dollar rolls) and non-standard settlement cycle securities, unless such transactions meet the Delayed","page_number":76,"box":{"x":116,"y":494,"width":755,"height":13}},{"id":"f81101bc-8ce0-4e08-ae69-f490a61e851f","block_type":"box","text":"Settlement Securities Provision (as defined below under “—When-Issued Securities, Delayed Delivery","page_number":76,"box":{"x":116,"y":510,"width":763,"height":12}},{"id":"6aef374b-69e7-4bc8-9667-381eb3b7edbd","block_type":"box","text":"Securities and Forward Commitments”).","page_number":76,"box":{"x":116,"y":525,"width":302,"height":13}},{"id":"45141081-3388-448e-a6de-3d9ec6f54b15","block_type":"box","text":"Unless a Fund is relying on the Limited Derivatives User Exception (as defined below), the Fund must","page_number":76,"box":{"x":117,"y":554,"width":759,"height":12}},{"id":"98891d84-532d-4b05-84ab-3c058e484303","block_type":"box","text":"comply with Rule 18f-4 with respect to its Derivatives Transactions. Rule 18f-4, among other things,","page_number":76,"box":{"x":116,"y":569,"width":744,"height":12}},{"id":"31f20376-cf89-420a-8fbc-8f7179d4e3ba","block_type":"box","text":"requires a Fund to adopt and implement a comprehensive written derivatives risk management","page_number":76,"box":{"x":117,"y":585,"width":708,"height":12}},{"id":"e65ba415-463b-40a2-89df-41c245d80b80","block_type":"box","text":"program (“DRMP”) and comply with a relative or absolute limit on Fund leverage risk calculated based","page_number":76,"box":{"x":117,"y":600,"width":761,"height":12}},{"id":"bd48aa68-1935-4e19-9ea1-aa2594eae544","block_type":"box","text":"on value-at-risk (“VaR”). The DRMP is administered by a “derivatives risk manager,” who is appointed","page_number":76,"box":{"x":116,"y":616,"width":760,"height":12}},{"id":"76df5371-5795-4c75-a350-1b9e1a3151c8","block_type":"box","text":"by the Fund’s Board, including a majority of the independent Directors, and periodically reviews the","page_number":76,"box":{"x":117,"y":631,"width":739,"height":12}},{"id":"90c594c1-4b50-46a6-89e8-9124ef831df3","block_type":"box","text":"DRMP and reports to the Fund’s Board.","page_number":76,"box":{"x":117,"y":647,"width":299,"height":12}},{"id":"6b977e3c-684d-4749-8af4-d0a59b641f31","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and certain other requirements if a Fund’s","page_number":76,"box":{"x":117,"y":675,"width":758,"height":12}},{"id":"885308bd-4cba-4049-9a76-a4edd2e689bf","block_type":"box","text":"“derivatives exposure” is limited to 10% of its net assets (as calculated in accordance with Rule 18f-4)","page_number":76,"box":{"x":116,"y":690,"width":754,"height":13}},{"id":"bf835668-76b8-4931-a6e2-dbfa62602b22","block_type":"box","text":"and the Fund adopts and implements written policies and procedures reasonably designed to manage","page_number":76,"box":{"x":116,"y":706,"width":758,"height":12}},{"id":"e6e005f1-ad4b-4f84-85c0-7033f3334acf","block_type":"box","text":"its derivatives risks (the “Limited Derivatives User Exception”).","page_number":76,"box":{"x":117,"y":721,"width":459,"height":13}},{"id":"b1d878d2-7118-4676-90f1-69d4c65f1274","block_type":"box","text":"Dodd-Frank Regulations","page_number":76,"box":{"x":116,"y":756,"width":182,"height":12}},{"id":"bc12e5cb-ed21-4d3c-a0c0-d9d9aaf98073","block_type":"box","text":". The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd","page_number":76,"box":{"x":299,"y":756,"width":564,"height":12}},{"id":"54aee9f9-016c-4942-b876-7836778f5443","block_type":"box","text":"Frank”), enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter","page_number":76,"box":{"x":117,"y":772,"width":754,"height":12}},{"id":"56ad57d8-0989-4172-b2b0-1383f91de863","block_type":"box","text":"(“OTC”) derivatives markets for the first time. While the Commodity Futures Trading Commission","page_number":76,"box":{"x":117,"y":787,"width":716,"height":12}},{"id":"05441046-0854-46f1-90e4-366549dc643f","block_type":"box","text":"(“CFTC”) and other U.S. regulators have adopted many of the required Dodd-Frank regulations, certain","page_number":76,"box":{"x":117,"y":803,"width":764,"height":12}},{"id":"02c22dab-2c18-49ca-a034-03ead952fbbb","block_type":"box","text":"regulations have only recently become effective and other regulations remain to be adopted. The full","page_number":76,"box":{"x":117,"y":818,"width":743,"height":12}},{"id":"75f8296a-05cb-429c-9abc-f47e8cebe64c","block_type":"box","text":"impact of Dodd-Frank on the Funds remains uncertain.","page_number":76,"box":{"x":117,"y":834,"width":411,"height":12}},{"id":"c01924cf-8dfb-40f9-8ef5-f6abb6cf71dc","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or with the","page_number":76,"box":{"x":117,"y":862,"width":770,"height":12}},{"id":"643a0966-ffdd-4a5a-994b-0f68db72664c","block_type":"box","text":"SEC as “security-based swap dealers”. Registered swap dealers and security-based swap dealers are","page_number":76,"box":{"x":116,"y":877,"width":765,"height":12}},{"id":"6217df69-6556-448c-8360-1b1ffa09106c","block_type":"box","text":"II-17","page_number":76,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"152b75e1-4950-4e7b-b8f9-b83980a57437","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":76,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c83ef14d-b226-4094-b00e-fb5aefec8002","block_type":"box","text":"subject to various regulatory requirements, including, but not limited to, margin, recordkeeping,","page_number":77,"box":{"x":116,"y":87,"width":708,"height":12}},{"id":"13f7d2cb-087f-47ae-bb48-1e4b77464d43","block_type":"box","text":"reporting, transparency, position limits, limitations on conflicts of interest, business conduct standards,","page_number":77,"box":{"x":117,"y":102,"width":761,"height":13}},{"id":"79b8e3b4-da65-46e5-af2a-45c86a7def09","block_type":"box","text":"minimum capital requirements and other regulatory requirements, which indirectly impact the Funds","page_number":77,"box":{"x":117,"y":118,"width":743,"height":12}},{"id":"825af1de-893a-454a-9513-25a894798f86","block_type":"box","text":"that enter into transactions with them.","page_number":77,"box":{"x":116,"y":134,"width":284,"height":9}},{"id":"a550a3c9-0f54-432b-9dc4-895760a8d9fa","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed","page_number":77,"box":{"x":116,"y":165,"width":761,"height":11}},{"id":"a70aaf70-2fec-4092-9b41-94293db23780","block_type":"box","text":"in regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also","page_number":77,"box":{"x":117,"y":180,"width":719,"height":12}},{"id":"a3967968-99f5-416e-8edb-59ed6b958e15","block_type":"box","text":"expected to impose similar requirements on certain security-based derivatives in the future. OTC","page_number":77,"box":{"x":116,"y":196,"width":723,"height":12}},{"id":"cf73bba7-2f2b-4938-af52-95104503ac44","block_type":"box","text":"derivatives trades submitted for clearing are subject to minimum initial and variation margin","page_number":77,"box":{"x":116,"y":211,"width":681,"height":12}},{"id":"968f808c-13e9-4d2b-bbdd-ff88ec7150ec","block_type":"box","text":"requirements set by the relevant clearinghouse, as well as margin requirements mandated by the","page_number":77,"box":{"x":117,"y":227,"width":726,"height":12}},{"id":"9263f70f-cf0c-4cf5-bc6e-9b75dec0a4ef","block_type":"box","text":"CFTC, SEC and/or federal prudential regulators. In addition, futures commission merchants (“FCMs”),","page_number":77,"box":{"x":117,"y":242,"width":760,"height":12}},{"id":"dc2da732-881e-422e-bc5f-ec0fb82a3b11","block_type":"box","text":"who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":77,"box":{"x":116,"y":258,"width":697,"height":12}},{"id":"a3005237-1c29-4a00-bb50-9fdbd63111d5","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond","page_number":77,"box":{"x":116,"y":273,"width":772,"height":12}},{"id":"2b587944-7a85-42d8-8375-82d51668810d","block_type":"box","text":"any regulatory and clearinghouse minimums subject to any restrictions on such discretion in the","page_number":77,"box":{"x":116,"y":289,"width":715,"height":12}},{"id":"862f2a5f-07db-4b48-85d1-408e224ba99f","block_type":"box","text":"documentation between the FCM and the customer. These regulatory requirements may make it more","page_number":77,"box":{"x":116,"y":304,"width":764,"height":12}},{"id":"dfe1dd99-6926-48c4-a369-5e86a94a31f8","block_type":"box","text":"difficult and costly for the Funds to enter into highly tailored or customized transactions, potentially","page_number":77,"box":{"x":116,"y":320,"width":733,"height":12}},{"id":"939284c1-fca0-44f2-91c3-6278f09c6c0d","block_type":"box","text":"rendering certain investment strategies impossible or not economically feasible. If a Fund decides to","page_number":77,"box":{"x":117,"y":335,"width":747,"height":12}},{"id":"39347fa3-413c-4f55-ae0c-b1e96eda266d","block_type":"box","text":"execute and clear cleared OTC derivatives and/or futures contracts through execution facilities,","page_number":77,"box":{"x":116,"y":351,"width":712,"height":12}},{"id":"da78baab-8438-43ab-ac93-a61cac27819e","block_type":"box","text":"exchanges or clearinghouses, either indirectly through an executing broker, clearing member FCM or","page_number":77,"box":{"x":116,"y":366,"width":756,"height":12}},{"id":"496aded0-9cf9-45fa-876c-ac686b161da0","block_type":"box","text":"as a direct member, a Fund would be required to comply with the rules of the execution facility,","page_number":77,"box":{"x":116,"y":382,"width":709,"height":12}},{"id":"5b430033-4b08-4391-91c2-a4c95f7569b9","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":77,"box":{"x":116,"y":397,"width":397,"height":12}},{"id":"20ca5f7a-0d64-438a-aec4-fd47fa85ee80","block_type":"box","text":"With respect to cleared OTC derivatives and futures contracts and options on futures, a Fund will not","page_number":77,"box":{"x":116,"y":428,"width":753,"height":12}},{"id":"39346693-c676-454a-8424-cc5769700754","block_type":"box","text":"face a clearinghouse directly but rather will do so through a FCM that is registered with the CFTC and/","page_number":77,"box":{"x":116,"y":444,"width":759,"height":12}},{"id":"8d7c8b61-0599-4064-a20d-4bbca740daaf","block_type":"box","text":"or SEC and that acts as a clearing member. A Fund may face the indirect risk of the failure of another","page_number":77,"box":{"x":116,"y":459,"width":759,"height":12}},{"id":"f0ded108-ca96-4afa-9cc3-8376a551f41a","block_type":"box","text":"clearing member customer to meet its obligations to its clearing member. Such scenario could arise","page_number":77,"box":{"x":116,"y":475,"width":744,"height":12}},{"id":"6e283d02-655d-47ee-85ee-cc4e35baaaaf","block_type":"box","text":"due to a default by the clearing member on its obligations to the clearinghouse simultaneously with a","page_number":77,"box":{"x":116,"y":490,"width":752,"height":12}},{"id":"08ffb0bd-ccb8-4fa2-b4f6-1c4a5fa96715","block_type":"box","text":"customer’s failure to meet its obligations to the clearing member.","page_number":77,"box":{"x":116,"y":506,"width":485,"height":12}},{"id":"c9e372fb-58f0-4582-a876-e45c3df1970b","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they","page_number":77,"box":{"x":117,"y":537,"width":742,"height":12}},{"id":"f2112394-2bd5-431d-9c5e-7b03000643c0","block_type":"box","text":"clear their customers’ cleared OTC derivatives and futures contracts, instead of using such initial","page_number":77,"box":{"x":116,"y":552,"width":722,"height":12}},{"id":"e934160f-e9da-49a8-ade7-fe21c0f2fbe8","block_type":"box","text":"margin in their businesses, as was widely permitted for OTC derivatives before Dodd-Frank. While an","page_number":77,"box":{"x":117,"y":568,"width":757,"height":12}},{"id":"a0cf9ff8-15ae-4321-b836-92076ec66011","block_type":"box","text":"FCM may require its customer to post initial margin in excess of clearinghouse requirements, and","page_number":77,"box":{"x":117,"y":583,"width":727,"height":12}},{"id":"80346eb0-fb59-40a5-ab3b-17cf6717736e","block_type":"box","text":"certain clearinghouses may share a portion of their earnings on initial margin with their clearing","page_number":77,"box":{"x":116,"y":599,"width":710,"height":12}},{"id":"b4478124-7c7b-482b-9c7f-5a58579ed75d","block_type":"box","text":"members, some portion of the initial margin that is passed through to the clearinghouse does not","page_number":77,"box":{"x":117,"y":614,"width":722,"height":12}},{"id":"89ad9cc4-20b9-4cd5-8cfb-1113565dbea1","block_type":"box","text":"generate earnings for the FCM. The inability of FCMs to earn the same levels of returns on initial","page_number":77,"box":{"x":116,"y":630,"width":722,"height":12}},{"id":"26fe6f47-08fa-4b3e-b4fe-a600c7ebd126","block_type":"box","text":"margin for cleared OTC derivatives as they could earn with respect to non-cleared OTC derivatives","page_number":77,"box":{"x":117,"y":645,"width":739,"height":12}},{"id":"4947626b-cfcd-4ad0-a77e-8ed0dc26b4f8","block_type":"box","text":"may cause FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives","page_number":77,"box":{"x":117,"y":661,"width":747,"height":12}},{"id":"d852bfd6-f7a4-4afa-be42-410e925a374e","block_type":"box","text":"than swap dealers will provide for non-cleared OTC derivatives. Furthermore, customers, including the","page_number":77,"box":{"x":116,"y":676,"width":760,"height":12}},{"id":"2cfb9f02-4785-4c44-9491-469355768188","block_type":"box","text":"Funds, are subject to additional fees payable to FCMs with respect to cleared OTC derivatives, which","page_number":77,"box":{"x":117,"y":692,"width":751,"height":12}},{"id":"713e6079-bea6-43fb-9a06-1e62d9e19288","block_type":"box","text":"may raise the cost to Funds of clearing as compared to trading non-cleared OTC derivatives bilaterally.","page_number":77,"box":{"x":117,"y":707,"width":763,"height":12}},{"id":"034ef206-9ffc-4eac-931f-14e293591bd9","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are","page_number":77,"box":{"x":116,"y":738,"width":710,"height":12}},{"id":"36860060-70a4-418e-9fd0-87a67d60d232","block_type":"box","text":"required to exchange variation margin with a Fund and may be required by applicable regulations to","page_number":77,"box":{"x":117,"y":754,"width":740,"height":12}},{"id":"e3d25433-cc26-4c55-833e-6d980067ef4e","block_type":"box","text":"collect (and in some cases exchange) initial margin with a Fund. Both initial and variation margin may","page_number":77,"box":{"x":116,"y":769,"width":752,"height":12}},{"id":"e166db5e-fff7-4ad5-b0ad-724afd77dac0","block_type":"box","text":"be comprised of cash and/or securities, subject to applicable regulatory haircuts and other restrictions.","page_number":77,"box":{"x":117,"y":785,"width":757,"height":12}},{"id":"33c28935-83b0-4afc-b55c-b31727693943","block_type":"box","text":"Shares of investment companies (other than certain money market funds) may not be posted as","page_number":77,"box":{"x":116,"y":800,"width":713,"height":12}},{"id":"c7c2319d-1474-4ede-8eee-960cae48b4cc","block_type":"box","text":"collateral under applicable regulations.","page_number":77,"box":{"x":116,"y":816,"width":285,"height":12}},{"id":"e034c0d7-e2b2-40b5-bc6b-a8215d34ef91","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to","page_number":77,"box":{"x":116,"y":847,"width":760,"height":12}},{"id":"8a8712d6-d0a3-49be-bb46-a3a4b5f91b29","block_type":"box","text":"evaluate and monitor) speculative position limits (“position limits”) on the maximum speculative position","page_number":77,"box":{"x":116,"y":862,"width":771,"height":12}},{"id":"515c00e5-007b-4dcf-a394-c4240600bd18","block_type":"box","text":"which any person, or group of persons acting in concert, may hold or control in particular contracts. In","page_number":77,"box":{"x":116,"y":878,"width":759,"height":12}},{"id":"a3f4f942-d461-4941-bfc0-9383045549b0","block_type":"box","text":"II-18","page_number":77,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"afc4e0d7-812d-4c8f-b254-ee8f45b26117","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":77,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1f93f60e-609e-44e5-9dd8-7c0775f0ac7d","block_type":"box","text":"addition, U.S. federal position limits apply to swaps that are economically equivalent to futures","page_number":78,"box":{"x":116,"y":87,"width":703,"height":12}},{"id":"072c91bf-d5ff-43b9-8f53-f6c15a8a1577","block_type":"box","text":"contracts on certain agricultural, metals and energy commodities. All positions owned or controlled by","page_number":78,"box":{"x":116,"y":103,"width":758,"height":12}},{"id":"29a0f2e4-1dbe-42e6-b14f-cd55515863ce","block_type":"box","text":"the same person or entity, even if in different accounts, must be aggregated for purposes of complying","page_number":78,"box":{"x":116,"y":118,"width":766,"height":12}},{"id":"0bc99ab2-c6f2-45e3-858b-992591435004","block_type":"box","text":"with the speculative limits. Thus, even if a Fund does not intend to exceed applicable position limits, it","page_number":78,"box":{"x":116,"y":134,"width":758,"height":11}},{"id":"37698886-f728-4369-88e6-338874934717","block_type":"box","text":"is possible that different clients managed by the Manager and its affiliates may be aggregated for this","page_number":78,"box":{"x":117,"y":149,"width":755,"height":12}},{"id":"74853152-739d-445f-8329-a6c1462bae69","block_type":"box","text":"purpose. Therefore, the trading decisions of the Manager may have to be modified and positions held","page_number":78,"box":{"x":117,"y":165,"width":757,"height":12}},{"id":"5a4ac7e6-60eb-473b-a4fc-cc37efe60431","block_type":"box","text":"by a Fund liquidated in order to avoid exceeding such limits. The modification of investment decisions","page_number":78,"box":{"x":117,"y":180,"width":757,"height":12}},{"id":"f20094af-af7f-4e90-adac-6b8068ca1124","block_type":"box","text":"or the elimination of open positions, if it occurs, may adversely affect the profitability of a Fund. A","page_number":78,"box":{"x":116,"y":196,"width":723,"height":12}},{"id":"266f7cd9-69b9-44d3-8e90-b267050992ca","block_type":"box","text":"violation of position limits could also lead to regulatory action materially adverse to a Fund’s investment","page_number":78,"box":{"x":116,"y":211,"width":770,"height":12}},{"id":"9d912bfb-5d2c-4064-8542-21c4b925d905","block_type":"box","text":"strategy. A Fund may also be affected by other regimes, including those of the European Union and","page_number":78,"box":{"x":116,"y":227,"width":746,"height":12}},{"id":"763d448f-8037-43c7-8937-e5f20c911ee9","block_type":"box","text":"United Kingdom, and trading venues that impose position limits on commodity derivative contracts.","page_number":78,"box":{"x":117,"y":242,"width":737,"height":12}},{"id":"9c09aaaf-9a36-4fb3-bd0d-6611d3a9aaf7","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":78,"box":{"x":115,"y":273,"width":269,"height":12}},{"id":"ec084342-9d49-4ca8-bdb1-6408cb1b6115","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed,","page_number":78,"box":{"x":386,"y":273,"width":489,"height":12}},{"id":"2e67c41c-6b93-462d-9155-b54fea5e85a9","block_type":"box","text":"or may propose in the future, legislation similar to Dodd-Frank or other legislation that could increase","page_number":78,"box":{"x":116,"y":289,"width":753,"height":12}},{"id":"d9b0452e-e301-4a55-a302-9e3f9eb64351","block_type":"box","text":"the costs of participating in, or otherwise adversely impact the liquidity of, participating in the","page_number":78,"box":{"x":116,"y":304,"width":689,"height":12}},{"id":"7adf5d1b-583f-4db1-a600-78a44f6c157e","block_type":"box","text":"commodities markets. For example, the European Market Infrastructure Regulation (Regulation (EU)","page_number":78,"box":{"x":116,"y":320,"width":752,"height":12}},{"id":"5eab1f67-8feb-4b39-830c-80a11281f321","block_type":"box","text":"No 648/2012) (“EMIR”) introduced certain requirements in respect of OTC derivatives including:(i) the","page_number":78,"box":{"x":117,"y":335,"width":757,"height":12}},{"id":"b260ca3b-a3be-4418-9e71-1297ef7c31bc","block_type":"box","text":"mandatory clearing of OTC derivative contracts declared subject to the clearing obligation; (ii) risk","page_number":78,"box":{"x":117,"y":351,"width":728,"height":12}},{"id":"ae54386a-6390-4b74-adbd-2045816389d6","block_type":"box","text":"mitigation techniques in respect of uncleared OTC derivative contracts, including the mandatory","page_number":78,"box":{"x":117,"y":366,"width":714,"height":12}},{"id":"81520251-3c67-4194-831c-4ad6c127a910","block_type":"box","text":"margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping requirements in","page_number":78,"box":{"x":117,"y":382,"width":765,"height":12}},{"id":"6668e3ba-7358-46d5-bc1f-f32d76e31699","block_type":"box","text":"respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":78,"box":{"x":117,"y":397,"width":703,"height":12}},{"id":"6152a6d5-e717-43e5-9954-1133b2cad598","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments","page_number":78,"box":{"x":117,"y":413,"width":688,"height":12}},{"id":"956dcbcd-8a6c-45f4-97c8-33adcc68e4be","block_type":"box","text":"Regulation (Regulation (EU) No 600/2014) (together “MiFID II”), which have applied since January 3,","page_number":78,"box":{"x":117,"y":428,"width":753,"height":12}},{"id":"8e047a11-7c3d-458c-a69a-2af21a7adcc5","block_type":"box","text":"2018, govern the provision of investment services and activities in relation to, as well as the organized","page_number":78,"box":{"x":116,"y":444,"width":762,"height":12}},{"id":"ac742369-1530-4992-a962-3f4c0287c677","block_type":"box","text":"trading of, financial instruments such as shares, bonds, units in collective investment schemes and","page_number":78,"box":{"x":116,"y":459,"width":738,"height":12}},{"id":"e6e55fd2-8ccb-47e2-b12d-117983fa3622","block_type":"box","text":"derivatives. In particular, MiFID II requires European Union Member States to apply position limits to","page_number":78,"box":{"x":116,"y":475,"width":749,"height":12}},{"id":"fb074dd1-577a-4200-9ccc-07c8eb533696","block_type":"box","text":"the size of a net position a person can hold at any time in commodity derivatives traded on European","page_number":78,"box":{"x":116,"y":490,"width":754,"height":12}},{"id":"daea4df6-d5f9-4938-94ab-e17356c1ce87","block_type":"box","text":"Union trading venues and in “economically equivalent” OTC contracts. If the requirements of EMIR and","page_number":78,"box":{"x":117,"y":506,"width":769,"height":12}},{"id":"be436c90-70d4-47f3-b464-b59e1fbddb2f","block_type":"box","text":"MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":78,"box":{"x":117,"y":521,"width":557,"height":12}},{"id":"85988078-9499-4e4d-bfd0-b864915742f8","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain","page_number":78,"box":{"x":117,"y":552,"width":742,"height":12}},{"id":"6ec31901-7f6d-4609-ab9d-c341c786f9d2","block_type":"box","text":"prudentially regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to","page_number":78,"box":{"x":117,"y":568,"width":764,"height":12}},{"id":"61f41d08-f788-4063-a384-e06a4c981e77","block_type":"box","text":"include in their derivatives contracts and certain other financial contracts, terms that delay or restrict","page_number":78,"box":{"x":117,"y":583,"width":745,"height":12}},{"id":"538b2a6c-c655-48d4-b177-9285e3704d7b","block_type":"box","text":"the rights of counterparties (such as the Funds) to terminate such contracts, foreclose upon collateral,","page_number":78,"box":{"x":116,"y":599,"width":761,"height":12}},{"id":"cf4a8527-f9c7-4d0b-acd5-dc56b55deef5","block_type":"box","text":"exercise other default rights or restrict transfers of credit support in the event that the prudentially","page_number":78,"box":{"x":116,"y":614,"width":725,"height":12}},{"id":"70451659-f0e0-47a6-97c5-7f24fff8ff11","block_type":"box","text":"regulated entity and/or its affiliates are subject to certain types of resolution or insolvency proceedings.","page_number":78,"box":{"x":117,"y":630,"width":765,"height":12}},{"id":"1af63da6-7ccf-4590-b17c-f8b6795cbf94","block_type":"box","text":"Similar regulations and laws have been adopted in non-U.S. jurisdictions that may apply to a Fund’s","page_number":78,"box":{"x":116,"y":645,"width":746,"height":12}},{"id":"2f7d9e1c-99dd-4314-8b39-8fbde3b0b78b","block_type":"box","text":"counterparties located in those jurisdictions. In particular, in the United Kingdom and the European","page_number":78,"box":{"x":116,"y":661,"width":731,"height":12}},{"id":"e041afa2-5261-418a-978c-5dbcbd54f52e","block_type":"box","text":"Union, governmental authorities could reduce, eliminate or convert to equity the liabilities to a Fund of","page_number":78,"box":{"x":117,"y":676,"width":753,"height":12}},{"id":"64657633-db38-4ab6-81ad-95c259cc26e7","block_type":"box","text":"a counterparty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":78,"box":{"x":116,"y":692,"width":763,"height":12}},{"id":"692cce76-49ef-45cc-9ef6-82cce08143af","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely","page_number":78,"box":{"x":116,"y":707,"width":726,"height":12}},{"id":"38a67742-631b-45a6-9a56-cdbb6bc2ae8a","block_type":"box","text":"affect a Fund’s ability to terminate existing derivatives contracts, exercise default rights or satisfy","page_number":78,"box":{"x":116,"y":723,"width":716,"height":12}},{"id":"5e3bcd5d-6346-4cb5-8d3b-310dfa73461d","block_type":"box","text":"obligations owed to it with collateral received under such contracts.","page_number":78,"box":{"x":116,"y":738,"width":496,"height":12}},{"id":"cc78acf7-43d2-4491-8b16-4486f2c32336","block_type":"box","text":"Risk Factors in Derivatives.","page_number":78,"box":{"x":116,"y":777,"width":202,"height":9}},{"id":"54a85784-4d1f-44d2-aa21-808007f5c465","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":78,"box":{"x":116,"y":808,"width":620,"height":12}},{"id":"a75150cb-45f2-4a63-87ed-631158ab9b63","block_type":"box","text":"Correlation Risk —","page_number":78,"box":{"x":117,"y":831,"width":123,"height":10}},{"id":"d2b8606c-2522-4381-8c3d-6ad834722c97","block_type":"box","text":"— the risk that changes in the value of a derivative will not match the changes in the","page_number":78,"box":{"x":240,"y":831,"width":631,"height":12}},{"id":"7ffb787c-cb75-4f2d-b4ca-75d671b25870","block_type":"box","text":"value of the portfolio holdings that are being hedged or of the particular market or security to which the","page_number":78,"box":{"x":116,"y":847,"width":765,"height":12}},{"id":"8ca37cd9-b830-4d7c-8505-20e0e440503a","block_type":"box","text":"Fund seeks exposure. There are a number of factors which may prevent a derivative instrument from","page_number":78,"box":{"x":117,"y":862,"width":754,"height":12}},{"id":"9fa7431f-0e4c-491f-ab05-c0c9c2386728","block_type":"box","text":"achieving the desired correlation (or inverse correlation) with an underlying asset, rate or index, such","page_number":78,"box":{"x":116,"y":878,"width":753,"height":12}},{"id":"1e66c545-ff7b-4da2-a1b9-90d814032cae","block_type":"box","text":"II-19","page_number":78,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"434a6298-c641-4062-bd39-fc3f3aec10b0","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":78,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ad1c738b-8294-44e3-93b3-2848f3e1b8e3","block_type":"box","text":"as the impact of fees, expenses and transaction costs, the timing of pricing, and disruptions or illiquidity","page_number":79,"box":{"x":116,"y":87,"width":772,"height":12}},{"id":"bf66e2ee-a07f-4302-b9f8-85a98c748b94","block_type":"box","text":"in the markets for such derivative instrument.","page_number":79,"box":{"x":117,"y":102,"width":338,"height":10}},{"id":"556dab64-8fd5-4d7c-9179-a307ddfa4e15","block_type":"box","text":"Counterparty Risk —","page_number":79,"box":{"x":117,"y":134,"width":138,"height":12}},{"id":"30cd8415-c322-4994-bb64-e1f88c3cd38f","block_type":"box","text":"—","page_number":79,"box":{"x":255,"y":139,"width":22,"height":4}},{"id":"e111723e-adb1-4748-a193-794e7b7d59c0","block_type":"box","text":"the risk that a derivatives transaction counterparty will be unable or unwilling to","page_number":79,"box":{"x":277,"y":134,"width":590,"height":12}},{"id":"acfe4a4d-f5da-43c3-a4e3-892ec12a73c9","block_type":"box","text":"make payments or otherwise honor its obligations to a Fund and the related risks of having","page_number":79,"box":{"x":117,"y":149,"width":678,"height":12}},{"id":"36e3d5fd-3c96-494c-b627-f438cd72c03a","block_type":"box","text":"concentrated exposure to such a counterparty. In particular, derivatives traded in OTC markets often","page_number":79,"box":{"x":116,"y":165,"width":751,"height":12}},{"id":"bc68c4b6-bd90-4b1e-9006-fc150d9e0d12","block_type":"box","text":"are not guaranteed by an exchange or clearing corporation and often do not require payment of","page_number":79,"box":{"x":116,"y":180,"width":714,"height":12}},{"id":"a19f768e-fc91-49ca-a8cf-e99f1e9116ce","block_type":"box","text":"margin, and to the extent that the Fund has unrealized gains in such instruments or has deposited","page_number":79,"box":{"x":117,"y":196,"width":732,"height":12}},{"id":"9ff46004-4e80-4049-b8a0-bf2990dd6f80","block_type":"box","text":"collateral with its counterparties the Fund is at risk that its counterparties will become bankrupt or","page_number":79,"box":{"x":116,"y":211,"width":725,"height":12}},{"id":"780d0958-6945-4491-b061-9b75f5ae8e20","block_type":"box","text":"otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":79,"box":{"x":116,"y":227,"width":750,"height":12}},{"id":"51de09bf-d830-46e7-bdc8-cc1ed138034a","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or","page_number":79,"box":{"x":116,"y":242,"width":768,"height":12}},{"id":"c69cc0cb-33bd-44a2-a68f-bd5e6556a45f","block_type":"box","text":"that have provided the Fund with a third-party guaranty or other credit support. When a Fund enters","page_number":79,"box":{"x":116,"y":258,"width":745,"height":12}},{"id":"eb93ff04-c471-457f-9baa-bb7b8c783932","block_type":"box","text":"into a derivatives transaction that is centrally cleared (whether mandatorily or voluntarily), the Fund is","page_number":79,"box":{"x":117,"y":273,"width":754,"height":12}},{"id":"c4475377-eec5-4ac0-9a53-d7a3eabc6cb8","block_type":"box","text":"subject to the credit risk of the clearing house and the clearing member through which it holds its","page_number":79,"box":{"x":116,"y":289,"width":722,"height":12}},{"id":"bd31e466-5a68-4369-86c4-6b939be69c54","block_type":"box","text":"cleared position. Credit risk of market participants with respect to derivatives that are centrally cleared","page_number":79,"box":{"x":116,"y":304,"width":761,"height":12}},{"id":"10e5b896-9d60-4450-ae89-32d2c0688bbd","block_type":"box","text":"is concentrated in a few clearing houses and increasingly fewer clearing members. It is not clear how","page_number":79,"box":{"x":117,"y":320,"width":754,"height":12}},{"id":"cf114d2d-bf8a-4d7e-9f33-b1fb17240801","block_type":"box","text":"an insolvency proceeding of a clearing house would be conducted and what impact an insolvency of a","page_number":79,"box":{"x":116,"y":335,"width":762,"height":12}},{"id":"57faacb3-5b91-4dda-99fe-f20eb7819298","block_type":"box","text":"clearing house would have on the financial system. Also, a Fund will not be fully protected in the event","page_number":79,"box":{"x":116,"y":351,"width":764,"height":12}},{"id":"e3af7bfb-5a90-4124-9095-7f2c5ac216a5","block_type":"box","text":"of the bankruptcy of a Fund’s clearing member because the Fund would be limited to recovering only a","page_number":79,"box":{"x":116,"y":366,"width":768,"height":12}},{"id":"767fdf68-f0c1-4e3e-a1a4-1e2f278c3f32","block_type":"box","text":"pro rata share of the funds held by the clearing member on behalf of customers by account class for","page_number":79,"box":{"x":117,"y":382,"width":747,"height":12}},{"id":"798d1f57-00b2-47e6-8d6b-8281e51d1eb0","block_type":"box","text":"cleared derivatives. Although a clearing member is required to segregate assets from customers with","page_number":79,"box":{"x":116,"y":397,"width":755,"height":12}},{"id":"05515c4e-0548-435e-9426-85d47e63db42","block_type":"box","text":"respect to cleared derivatives positions from the clearing member’s proprietary assets, if a clearing","page_number":79,"box":{"x":117,"y":413,"width":736,"height":12}},{"id":"2c5d24fc-a7db-4238-9667-51e51d9a66fa","block_type":"box","text":"member does not comply with the applicable regulations, or in the event of fraud or misappropriation of","page_number":79,"box":{"x":117,"y":428,"width":768,"height":12}},{"id":"65362593-a3c0-45fa-9880-a7834cd9cf6e","block_type":"box","text":"customer assets by a clearing member, a Fund could have only an unsecured creditor claim in an","page_number":79,"box":{"x":116,"y":444,"width":730,"height":12}},{"id":"d8434ed3-9fcd-4378-85f9-5a334a0702c3","block_type":"box","text":"insolvency of the clearing member with respect to the assets held by the clearing member.","page_number":79,"box":{"x":117,"y":459,"width":675,"height":12}},{"id":"6a52cabc-06ea-4bf0-8118-eee4607d90f9","block_type":"box","text":"Credit Risk —","page_number":79,"box":{"x":117,"y":490,"width":86,"height":10}},{"id":"83af92a3-21f5-44eb-9758-6cc374717eab","block_type":"box","text":"— the risk that the reference entity in a credit default swap or similar derivative will not be","page_number":79,"box":{"x":203,"y":490,"width":668,"height":12}},{"id":"22b2fedf-3b39-435d-a8b4-06de0b7424e4","block_type":"box","text":"able to honor its financial obligations.","page_number":79,"box":{"x":116,"y":506,"width":280,"height":12}},{"id":"2aea4541-e4b7-4f94-afa9-deb6f83c0a27","block_type":"box","text":"Currency Risk —","page_number":79,"box":{"x":117,"y":537,"width":109,"height":12}},{"id":"5ff4e3c1-1453-4499-9326-302a5a620766","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely","page_number":79,"box":{"x":226,"y":537,"width":625,"height":12}},{"id":"3476ca0e-37ca-4473-a404-9015143dfa05","block_type":"box","text":"affect the value (in U.S. dollar terms) of a derivative.","page_number":79,"box":{"x":116,"y":552,"width":392,"height":12}},{"id":"a16de1b3-402e-43cf-925b-d1919d738312","block_type":"box","text":"Illiquidity Risk —","page_number":79,"box":{"x":117,"y":583,"width":105,"height":12}},{"id":"942859dd-dce1-4ca6-bc0c-dd4d5298b333","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at","page_number":79,"box":{"x":222,"y":583,"width":644,"height":12}},{"id":"3fbd089b-32d4-46d0-b99d-94d86845ec6e","block_type":"box","text":"the time or at the price desired by a Fund in connection with payments of margin, collateral, or","page_number":79,"box":{"x":116,"y":599,"width":703,"height":12}},{"id":"3396df9c-fd5b-4adb-b950-378df8f1fc1b","block_type":"box","text":"settlement payments. There can be no assurance that a Fund will be able to unwind or offset a","page_number":79,"box":{"x":116,"y":614,"width":708,"height":12}},{"id":"8e50374f-5f69-4476-a382-0abf1f8689ea","block_type":"box","text":"derivative at its desired price, in a secondary market or otherwise. It may, therefore, not be possible for","page_number":79,"box":{"x":116,"y":630,"width":768,"height":12}},{"id":"ec04cdaf-8d0b-4df7-b763-de3b8e738317","block_type":"box","text":"the Fund to unwind its position in a derivative without incurring substantial losses (if at all). Certain","page_number":79,"box":{"x":116,"y":645,"width":733,"height":12}},{"id":"4d17a55d-cf4b-430d-8e95-bfd3d2c85e74","block_type":"box","text":"OTC derivatives, including swaps and OTC options, involve substantial illiquidity risk. Illiquidity may","page_number":79,"box":{"x":116,"y":661,"width":736,"height":12}},{"id":"ddab1851-cc39-46d8-93e5-0e6d85d1d65e","block_type":"box","text":"also make it more difficult for a Fund to ascertain a market value for such derivatives. A Fund will,","page_number":79,"box":{"x":116,"y":676,"width":723,"height":11}},{"id":"6a510337-fdbf-4088-a686-0abad481bc4f","block_type":"box","text":"therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":79,"box":{"x":116,"y":692,"width":719,"height":12}},{"id":"4184723b-6387-4558-b615-ea8bbaff6f73","block_type":"box","text":"purchased contains a formula price at which the instrument may be terminated or sold, or (ii) for which","page_number":79,"box":{"x":117,"y":707,"width":757,"height":12}},{"id":"b56020fc-313f-4aba-9a57-59cc64acfc22","block_type":"box","text":"the Manager anticipates the Fund can receive on each business day at least two independent bids or","page_number":79,"box":{"x":116,"y":723,"width":751,"height":12}},{"id":"fb10e33d-d327-40b8-94bf-253d1696bd5e","block_type":"box","text":"offers, unless a quotation from only one dealer is available, in which case that dealer’s quotation may","page_number":79,"box":{"x":116,"y":738,"width":751,"height":12}},{"id":"8d737e39-5bbf-4d96-8b4e-638e037e31c7","block_type":"box","text":"be used. The illiquidity of the derivatives markets may be due to various factors, including congestion,","page_number":79,"box":{"x":117,"y":754,"width":752,"height":12}},{"id":"09d5da25-e144-463e-b28c-4784c3f4a156","block_type":"box","text":"disorderly markets, limitations on deliverable supplies, the participation of speculators, government","page_number":79,"box":{"x":116,"y":769,"width":733,"height":12}},{"id":"6e433be2-801b-4ee9-be24-a8af01ee1dbd","block_type":"box","text":"regulation and intervention, and technical and operational or system failures. In addition, the liquidity of","page_number":79,"box":{"x":117,"y":785,"width":763,"height":12}},{"id":"f69e1c11-7617-4c16-89be-40ba38d6527f","block_type":"box","text":"a market in an exchange-traded derivative contract may be adversely affected by “daily price","page_number":79,"box":{"x":116,"y":800,"width":688,"height":12}},{"id":"35f62baf-621c-43ad-92f9-e67544f5f22a","block_type":"box","text":"fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":79,"box":{"x":116,"y":816,"width":747,"height":12}},{"id":"e2e0daa1-9c06-431f-8f17-8a189067eecd","block_type":"box","text":"traded contract price during a single trading day. Once the daily limit has been reached in the contract,","page_number":79,"box":{"x":116,"y":831,"width":766,"height":12}},{"id":"741ec648-2909-43c2-87b8-2aa11bcb5900","block_type":"box","text":"no trades may be entered into at a price beyond the limit, thus preventing the liquidation of open","page_number":79,"box":{"x":117,"y":847,"width":717,"height":12}},{"id":"1fc11bc0-27aa-4554-acdf-ce65826e3de2","block_type":"box","text":"positions. Prices have in the past moved to the daily limit on a number of consecutive trading days with","page_number":79,"box":{"x":117,"y":862,"width":768,"height":12}},{"id":"75a5b3e7-81e5-4de4-ba1d-0e94f513364d","block_type":"box","text":"little to no trading. If it is not possible to close an open derivative position entered into by the Fund, the","page_number":79,"box":{"x":117,"y":878,"width":762,"height":12}},{"id":"fe46fe13-3e8a-4a95-bd79-b3910637628e","block_type":"box","text":"II-20","page_number":79,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"3a0e8da7-ad98-4d2f-92b1-12e5daab2882","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":79,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"57641c4a-cb28-4de6-b471-1e0fc72a2f9c","block_type":"box","text":"Fund would continue to be required to make daily cash payments of variation margin in the event of","page_number":80,"box":{"x":117,"y":87,"width":743,"height":12}},{"id":"15e3ab7f-dd26-4c41-8134-815728613748","block_type":"box","text":"adverse price movements. In such a situation, if the Fund has insufficient cash, it may have to sell","page_number":80,"box":{"x":116,"y":102,"width":732,"height":13}},{"id":"c9c15112-28b3-4ee7-b723-3005dd31b2b0","block_type":"box","text":"portfolio securities to meet daily variation margin requirements at a time when it may be","page_number":80,"box":{"x":117,"y":118,"width":654,"height":12}},{"id":"7365364e-90f7-49aa-acdb-7ce67d85070c","block_type":"box","text":"disadvantageous to do so.","page_number":80,"box":{"x":116,"y":134,"width":201,"height":12}},{"id":"3c41d1c9-d0b1-4277-8bfb-90bfa8c7d9ec","block_type":"box","text":"Index Risk —","page_number":80,"box":{"x":117,"y":163,"width":82,"height":10}},{"id":"75349986-2dec-4765-bfe1-2da664b9a4f4","block_type":"box","text":"— if the derivative is linked to the performance of an index, it will be subject to the risks","page_number":80,"box":{"x":199,"y":163,"width":651,"height":12}},{"id":"69c8e330-803b-480f-a64e-4aa9feacfa94","block_type":"box","text":"associated with changes in that index. If the index changes, the Fund could receive lower interest","page_number":80,"box":{"x":116,"y":179,"width":728,"height":12}},{"id":"756cb094-3411-4b64-8b1a-dc2070cb304c","block_type":"box","text":"payments or experience a reduction in the value of the derivative to below the price that the Fund paid","page_number":80,"box":{"x":117,"y":194,"width":762,"height":12}},{"id":"5a8693be-01cf-4b82-b5f6-6ab47e55645c","block_type":"box","text":"for such derivative.","page_number":80,"box":{"x":116,"y":210,"width":146,"height":9}},{"id":"ed839c83-69a4-4eb6-8ba8-561c9e52ff5a","block_type":"box","text":"Legal Risk","page_number":80,"box":{"x":116,"y":240,"width":79,"height":12}},{"id":"66c5f133-cb93-4038-b76b-de9106aa5d34","block_type":"box","text":"k — the risk of insufficient documentation, insufficient capacity or authority of counterparty, or","page_number":80,"box":{"x":194,"y":240,"width":689,"height":12}},{"id":"beb3767c-cc8d-4cea-9ac4-e78dd67b0b9c","block_type":"box","text":"legality or enforceability of a contract.","page_number":80,"box":{"x":117,"y":255,"width":281,"height":12}},{"id":"d5f26e5d-ae05-4f07-a9c5-59179fc4e286","block_type":"box","text":"Leverage Risk —","page_number":80,"box":{"x":116,"y":285,"width":112,"height":12}},{"id":"96b1f0c9-a139-473f-aad3-047f7f019b3f","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and","page_number":80,"box":{"x":228,"y":285,"width":619,"height":12}},{"id":"8ef52965-7650-4da9-9601-05619b50f7af","block_type":"box","text":"losses. Relatively small market movements may result in large changes in the value of a derivatives","page_number":80,"box":{"x":117,"y":300,"width":744,"height":12}},{"id":"45fe9879-3fca-446f-8583-21b7b2b41be7","block_type":"box","text":"position and can result in losses that greatly exceed the amount originally invested.","page_number":80,"box":{"x":117,"y":316,"width":621,"height":12}},{"id":"3867473b-598e-48ed-b6cb-faac7d28e9a8","block_type":"box","text":"Market Risk —","page_number":80,"box":{"x":116,"y":346,"width":93,"height":9}},{"id":"57003cd1-3a14-4532-9916-0743fa06a4cc","block_type":"box","text":"— the risk that changes in the value of one or more markets or changes with respect to","page_number":80,"box":{"x":209,"y":346,"width":653,"height":12}},{"id":"2ec7daa7-0789-4926-b14c-a904f8dc0b9b","block_type":"box","text":"the value of the underlying asset will adversely affect the value of a derivative. In the event of an","page_number":80,"box":{"x":116,"y":361,"width":719,"height":12}},{"id":"609212ba-2733-478f-a91c-c05a5e355633","block_type":"box","text":"adverse movement, a Fund may be required to pay substantial additional margin to maintain its","page_number":80,"box":{"x":116,"y":377,"width":713,"height":12}},{"id":"db11fc8f-2930-48f7-a700-60e623b4d571","block_type":"box","text":"position or the Fund’s returns may be adversely affected.","page_number":80,"box":{"x":117,"y":392,"width":427,"height":12}},{"id":"0a11de3e-d8ca-4559-b0c5-c0450730b6f6","block_type":"box","text":"Operational Risk","page_number":80,"box":{"x":117,"y":422,"width":124,"height":12}},{"id":"35faa9d9-8e60-4e91-ae39-ee70dc1b942c","block_type":"box","text":"k — the risk related to potential operational issues, including documentation issues,","page_number":80,"box":{"x":240,"y":422,"width":616,"height":12}},{"id":"d662d614-3303-4534-b250-ea4e357cce96","block_type":"box","text":"settlement issues, systems failures, inadequate controls and human error.","page_number":80,"box":{"x":116,"y":437,"width":555,"height":13}},{"id":"059a957f-de95-4498-a7b0-a546c1fa1177","block_type":"box","text":"Valuation Risk —","page_number":80,"box":{"x":118,"y":467,"width":110,"height":10}},{"id":"f0f01457-0462-4bb4-b305-d10d94dc100b","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the","page_number":80,"box":{"x":228,"y":467,"width":614,"height":12}},{"id":"dfb91748-27ea-4a24-b89c-4e8b4de5c587","block_type":"box","text":"market. This is possible especially in times of market distress, since many market participants may be","page_number":80,"box":{"x":117,"y":483,"width":760,"height":12}},{"id":"accfa0b7-ab74-4126-836c-b764b04d2a8f","block_type":"box","text":"reluctant to purchase complex instruments or quote prices for them.","page_number":80,"box":{"x":117,"y":498,"width":507,"height":12}},{"id":"325eb9c8-a349-4588-bb32-ff5a3fd276e8","block_type":"box","text":"Volatility Risk —","page_number":80,"box":{"x":118,"y":528,"width":102,"height":12}},{"id":"0ba98529-4cb8-4759-b6e1-3ba74cc96341","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time","page_number":80,"box":{"x":220,"y":528,"width":619,"height":12}},{"id":"e25b4e40-d4f9-4ba8-b21a-ce23a115d6d7","block_type":"box","text":"period.","page_number":80,"box":{"x":117,"y":544,"width":55,"height":11}},{"id":"4a09ec40-d16c-44c1-abcc-67204fea7f64","block_type":"box","text":"Types of Derivatives Transactions.","page_number":80,"box":{"x":118,"y":580,"width":261,"height":13}},{"id":"b99237d2-013c-49e4-9134-e4eceb32205a","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and","page_number":80,"box":{"x":116,"y":610,"width":715,"height":12}},{"id":"2798745c-9978-4af2-b860-558d4abcf944","block_type":"box","text":"restrictions, including the following:","page_number":80,"box":{"x":117,"y":626,"width":263,"height":12}},{"id":"383cf799-2019-4878-88a2-284c4352adfc","block_type":"box","text":"Futures.","page_number":80,"box":{"x":116,"y":663,"width":60,"height":9}},{"id":"4e24547e-f140-445f-83f5-7aa88c2af924","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are","page_number":80,"box":{"x":116,"y":692,"width":713,"height":13}},{"id":"186ecb02-0496-4a1a-92c1-a9774cabd9e5","block_type":"box","text":"standardized, exchange-traded contracts that require a purchaser to take delivery, and a seller to make","page_number":80,"box":{"x":116,"y":708,"width":767,"height":12}},{"id":"19d0c398-94ed-4650-a693-abe1cba73962","block_type":"box","text":"delivery, of a specified amount of an asset at a specified future date and price. Upon purchasing or","page_number":80,"box":{"x":116,"y":723,"width":734,"height":13}},{"id":"5a665729-c41c-4778-8b35-7315d60363d1","block_type":"box","text":"selling a futures contract, a Fund is required to deposit initial margin equal to a percentage of the","page_number":80,"box":{"x":116,"y":739,"width":718,"height":12}},{"id":"e9e97e35-e423-4bf4-89cb-d3b1e27fbd13","block_type":"box","text":"contract value. Futures contracts are marked to market daily for the duration of the contract, and the","page_number":80,"box":{"x":116,"y":754,"width":743,"height":13}},{"id":"98331bf8-e247-410c-b2a2-082f2a1c33bb","block_type":"box","text":"Fund will either post additional margin or be entitled to a payment, as applicable, based on the","page_number":80,"box":{"x":117,"y":770,"width":699,"height":12}},{"id":"6433cc1f-b13d-4038-b7c2-39c600d6833f","block_type":"box","text":"mark-to-market movement of the contract.","page_number":80,"box":{"x":117,"y":786,"width":311,"height":9}},{"id":"f7602fcc-2c64-4e9b-89e6-2d2bad072360","block_type":"box","text":"A Fund may sell a futures contract prior to the completion","page_number":80,"box":{"x":116,"y":815,"width":425,"height":12}},{"id":"a6dcf73e-80b9-4c08-b665-d067f7fdf703","block_type":"box","text":"of its term to limit its risk of loss from a","page_number":80,"box":{"x":548,"y":815,"width":284,"height":10}},{"id":"17969667-fa76-4e4e-9cfb-9cde918d1dc5","block_type":"box","text":"decline in the market value of portfolio holdings correlated with the futures contract. However, in the","page_number":80,"box":{"x":116,"y":831,"width":745,"height":12}},{"id":"4376f95a-7e30-4b95-887a-e9a3061114c4","block_type":"box","text":"event the market value of the portfolio holdings correlated with the futures contract increases rather","page_number":80,"box":{"x":116,"y":846,"width":742,"height":12}},{"id":"a77474f0-b4f1-434d-955f-f120b4c7d52c","block_type":"box","text":"than decreases, a Fund will realize a loss on the futures position and a lower return on the portfolio","page_number":80,"box":{"x":116,"y":862,"width":739,"height":12}},{"id":"e6c60288-2f39-440c-a670-c27aaa34f4e2","block_type":"box","text":"holdings than would have been realized without the purchase of the futures contract.","page_number":80,"box":{"x":117,"y":877,"width":631,"height":12}},{"id":"d45f1a53-53a7-47d9-bbf2-c025a662487e","block_type":"box","text":"II-21","page_number":80,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"e03aea28-3e81-4cb4-bafd-5b155e770124","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":80,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"27dea18b-c598-43af-b122-6694fc141eb9","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing","page_number":81,"box":{"x":116,"y":87,"width":697,"height":12}},{"id":"7982fc89-8495-4858-a23c-6572ebff2ac1","block_type":"box","text":"securities or commodities directly. In the event that such securities or commodities decline in value or a","page_number":81,"box":{"x":116,"y":103,"width":772,"height":12}},{"id":"427b5600-4023-4c6a-ab7c-7e65136d17d5","block_type":"box","text":"Fund determines not to complete an anticipatory hedge transaction relating to a futures contract,","page_number":81,"box":{"x":117,"y":118,"width":720,"height":12}},{"id":"9a90ea88-8900-438f-8505-126a1072f146","block_type":"box","text":"however, the Fund may realize a loss relating to the futures position.","page_number":81,"box":{"x":117,"y":134,"width":512,"height":12}},{"id":"844f09ff-121e-4725-ab42-7503e2590ea2","block_type":"box","text":"Futures contracts are also subject to position limits. In order to comply with position limits, a Fund may","page_number":81,"box":{"x":117,"y":165,"width":763,"height":12}},{"id":"4c38359b-3320-422c-83e6-e1c4e74bd060","block_type":"box","text":"be required to liquidate positions or may not be able to fully implement trading instructions. Any such","page_number":81,"box":{"x":117,"y":180,"width":750,"height":12}},{"id":"c6314fe5-eebb-46a6-9b86-7587ccffe3e8","block_type":"box","text":"liquidation or limited implementation could result in substantial costs to a Fund. See “—Regulation of","page_number":81,"box":{"x":117,"y":196,"width":750,"height":12}},{"id":"749e258c-f45a-46ea-b1c4-20ea363e3ae5","block_type":"box","text":"Derivatives—Dodd-Frank Regulations” above.","page_number":81,"box":{"x":117,"y":211,"width":346,"height":12}},{"id":"fd3a37a3-f267-4eed-a953-7e59ae565e1a","block_type":"box","text":"A Fund is also permitted to purchase or sell call and put options on futures contracts, including","page_number":81,"box":{"x":116,"y":242,"width":706,"height":12}},{"id":"968b8698-aa36-499f-91ef-6e6b83c41281","block_type":"box","text":"financial futures and stock indices. Generally, these strategies would be used under the same market","page_number":81,"box":{"x":116,"y":258,"width":757,"height":12}},{"id":"849c09b1-b904-41cd-a022-32c5a8c31747","block_type":"box","text":"and market sector conditions (","page_number":81,"box":{"x":116,"y":273,"width":225,"height":12}},{"id":"c2c6447c-3437-4d91-868e-7b503163d45f","block_type":"box","text":"i.e.","page_number":81,"box":{"x":342,"y":273,"width":20,"height":10}},{"id":"2e6aedb4-6888-424f-97d6-6ed5d9790f3d","block_type":"box","text":", conditions relating to specific types of investments) in which the","page_number":81,"box":{"x":365,"y":273,"width":485,"height":12}},{"id":"a6bbcee7-3751-4ab0-b351-8da7293fdabc","block_type":"box","text":"Fund entered into futures transactions. A Fund may purchase put options or write call options on","page_number":81,"box":{"x":117,"y":289,"width":720,"height":12}},{"id":"5d1238f6-7b2e-4b07-b838-886b28028363","block_type":"box","text":"futures contracts and stock indices in lieu of selling the underlying futures contract in anticipation of a","page_number":81,"box":{"x":116,"y":304,"width":754,"height":12}},{"id":"6ef50615-dc08-413f-a88d-29b748fab21b","block_type":"box","text":"decrease in the market value of its securities. Similarly, a Fund can purchase call options, or write put","page_number":81,"box":{"x":116,"y":320,"width":759,"height":12}},{"id":"3d3e06d5-d7fb-4984-a4ef-aa240bed34f4","block_type":"box","text":"options on futures contracts and stock indices, as a substitute for the purchase of such futures","page_number":81,"box":{"x":116,"y":335,"width":705,"height":12}},{"id":"68450bed-7183-4795-a7c3-d7502a4814c1","block_type":"box","text":"contracts to hedge against the increased cost resulting from an increase in the market value of","page_number":81,"box":{"x":116,"y":351,"width":707,"height":12}},{"id":"148f228d-60b0-4e3e-8343-d4047cd24948","block_type":"box","text":"securities which the Fund intends to purchase.","page_number":81,"box":{"x":116,"y":366,"width":350,"height":12}},{"id":"e8195b01-4631-4814-b186-598c0b09e72f","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to","page_number":81,"box":{"x":116,"y":397,"width":748,"height":12}},{"id":"16078331-5f7f-4d86-af0c-c4e8f9d49a8a","block_type":"box","text":"futures contracts. These instruments may take a variety of forms, such as debt securities with interest","page_number":81,"box":{"x":116,"y":413,"width":759,"height":12}},{"id":"0caca780-e4a5-4df8-b5c0-289d8d244860","block_type":"box","text":"or principal payments determined by reference to the value of a security, an index of securities or a","page_number":81,"box":{"x":116,"y":428,"width":740,"height":12}},{"id":"ad11957e-6e02-4309-8d42-65e88b448b27","block_type":"box","text":"commodity at a future point in time. The risks of such investments could reflect the risks of investing in","page_number":81,"box":{"x":116,"y":444,"width":764,"height":12}},{"id":"f279c55d-8a1f-43ee-9769-375cb8c384ec","block_type":"box","text":"futures and securities, including volatility and illiquidity.","page_number":81,"box":{"x":116,"y":459,"width":410,"height":12}},{"id":"b42c3508-ef5f-49d4-831b-cb07767a1b1a","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage","page_number":81,"box":{"x":117,"y":490,"width":751,"height":12}},{"id":"3fee5556-efc5-4b41-acf7-36a319cab953","block_type":"box","text":"risk, illiquidity risk, market risk and counterparty risk with respect to a Fund’s futures broker or the","page_number":81,"box":{"x":117,"y":506,"width":726,"height":12}},{"id":"d3924603-0627-4bec-b237-c893d49ba80a","block_type":"box","text":"clearinghouse. See “—Risk Factors in Derivatives” above.","page_number":81,"box":{"x":116,"y":521,"width":436,"height":12}},{"id":"9f307459-00dd-44f4-bc99-0a073065d652","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a","page_number":81,"box":{"x":117,"y":552,"width":771,"height":12}},{"id":"55a09fe7-b904-46ec-bbbc-f4a1fb7671a9","block_type":"box","text":"limit is set by a regulator, such as a government entity, on the total amount of specific greenhouse","page_number":81,"box":{"x":117,"y":568,"width":732,"height":12}},{"id":"25340afc-68d8-47b4-8c12-363e2b241e3e","block_type":"box","text":"gases, such as CO2, that can be emitted by regulated entities, such as manufacturers or energy","page_number":81,"box":{"x":116,"y":583,"width":720,"height":12}},{"id":"9f277a26-0dc8-4f7b-877f-69828ccf0fcf","block_type":"box","text":"producers. The regulator then may issue or sell individual “emission allowances” to regulated entities,","page_number":81,"box":{"x":117,"y":599,"width":756,"height":12}},{"id":"8d031a01-9046-48a7-8dbf-c6602620033c","block_type":"box","text":"which can then be traded on the open market. Commodity futures contracts linked to the value of","page_number":81,"box":{"x":116,"y":614,"width":725,"height":12}},{"id":"0e954571-25d1-4549-b36b-eaa19c371b85","block_type":"box","text":"emission allowances are known as “carbon futures.”","page_number":81,"box":{"x":116,"y":630,"width":392,"height":9}},{"id":"6c193193-e2eb-4fde-9053-267b143facd4","block_type":"box","text":"The price for carbon futures contracts is based on a number of factors, including the supply of and the","page_number":81,"box":{"x":116,"y":661,"width":756,"height":12}},{"id":"005c8f01-51fa-4c3c-ae33-159000fd61cd","block_type":"box","text":"demand for carbon futures contracts. Changes in law, market conditions and expectations, position","page_number":81,"box":{"x":116,"y":676,"width":734,"height":12}},{"id":"3b152993-0b03-46b7-a908-c8fdc36fb0ac","block_type":"box","text":"limits, collateral requirements, and other factors each can impact the supply of and demand for carbon","page_number":81,"box":{"x":117,"y":692,"width":758,"height":12}},{"id":"23c937c0-2749-47f2-ba9e-63435f685302","block_type":"box","text":"futures contracts. The market for carbon futures contracts is still developing and may be subject to","page_number":81,"box":{"x":116,"y":707,"width":729,"height":12}},{"id":"a5bdcc86-ccf8-445c-b1f7-71e0361af525","block_type":"box","text":"periods of illiquidity. During such times it may be difficult or impossible to buy or sell a position at the","page_number":81,"box":{"x":117,"y":723,"width":742,"height":12}},{"id":"5225270e-76f2-481f-a869-88a79a35fbfc","block_type":"box","text":"desired price. Market disruptions or volatility can also make it difficult to find a counterparty willing to","page_number":81,"box":{"x":116,"y":738,"width":742,"height":12}},{"id":"ca72b025-383d-4ab1-8c70-098f1bfb8cab","block_type":"box","text":"transact at a reasonable price and sufficient size.","page_number":81,"box":{"x":116,"y":754,"width":363,"height":12}},{"id":"ceeb2a9f-2f0b-4a9b-807b-e3c19cc04775","block_type":"box","text":"Swap Agreements.","page_number":81,"box":{"x":117,"y":792,"width":139,"height":12}},{"id":"deb353d3-73b9-4c23-8911-aa3300f8debc","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap","page_number":81,"box":{"x":116,"y":823,"width":699,"height":13}},{"id":"72e502d1-4411-4d5e-a2bf-fb5af7126035","block_type":"box","text":"agreements are OTC contracts entered into primarily by financial institutions and institutional investors","page_number":81,"box":{"x":116,"y":839,"width":764,"height":12}},{"id":"471e166f-72a1-4070-8465-cbc48d93188d","block_type":"box","text":"which may or may not be cleared by a central clearinghouse. In a standard “swap” transaction, two","page_number":81,"box":{"x":116,"y":854,"width":738,"height":13}},{"id":"5bfcce03-144d-47fa-97e7-9baaf8d5a242","block_type":"box","text":"parties agree to exchange the returns earned or realized from one or more underlying assets or rates","page_number":81,"box":{"x":117,"y":870,"width":755,"height":12}},{"id":"ba924d49-843f-4df1-a908-68a43b119960","block_type":"box","text":"II-22","page_number":81,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"27421f2f-1eb6-4453-a8c9-ee65d0743653","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":81,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ab074544-8c7c-4881-8e15-6e5c2a8e4911","block_type":"box","text":"of return, which may be adjusted for an interest factor. The gross returns to be exchanged or","page_number":82,"box":{"x":116,"y":87,"width":693,"height":12}},{"id":"50626f85-0943-4746-a610-3b8a7a93242d","block_type":"box","text":"“swapped” between the parties are generally calculated with respect to a “notional amount,”","page_number":82,"box":{"x":116,"y":102,"width":684,"height":13}},{"id":"54ac2e46-6159-461a-8ed7-e9b58c9a58c8","block_type":"box","text":"e.g.","page_number":82,"box":{"x":801,"y":105,"width":26,"height":10}},{"id":"5a3626e0-4fa1-487e-8474-6ead81cac307","block_type":"box","text":", the","page_number":82,"box":{"x":830,"y":103,"width":36,"height":11}},{"id":"97b072a3-a342-4391-9b12-c24f49f523b8","block_type":"box","text":"return or increase in value of a particular dollar amount invested at a particular interest rate, in a","page_number":82,"box":{"x":117,"y":118,"width":716,"height":12}},{"id":"2d421ba0-bafe-40e3-aafa-4b2050f373ea","block_type":"box","text":"particular foreign currency, or in a “basket” of securities representing a particular index. The notional","page_number":82,"box":{"x":117,"y":134,"width":747,"height":12}},{"id":"9057c6cf-dc0b-4220-8d26-43797fb386eb","block_type":"box","text":"amount of the swap agreement is only used to calculate the obligations that the parties to a swap","page_number":82,"box":{"x":116,"y":149,"width":726,"height":12}},{"id":"1d864823-eccf-45d5-a329-c9494cdec5c8","block_type":"box","text":"agreement have agreed to exchange. A Fund’s obligations (or rights) under a swap agreement will","page_number":82,"box":{"x":116,"y":165,"width":736,"height":12}},{"id":"813946db-df42-4d44-bde2-e8b4406dc251","block_type":"box","text":"generally be equal only to the net amount to be paid or received under the agreement based on the","page_number":82,"box":{"x":116,"y":180,"width":743,"height":12}},{"id":"537b703b-2559-4fcc-b2cf-ab39aafb55cf","block_type":"box","text":"relative values of the positions held by each party to the agreement. Swaps that are not cleared involve","page_number":82,"box":{"x":117,"y":196,"width":770,"height":12}},{"id":"d91350b0-7ec2-4732-940c-e8666401b7f6","block_type":"box","text":"substantial counterparty risk. A Fund will typically attempt to mitigate this counterparty risk by entering","page_number":82,"box":{"x":116,"y":211,"width":761,"height":12}},{"id":"a3d8643d-66b2-4ae4-b82a-de0aeb26ea33","block_type":"box","text":"into swap agreements only with creditworthy entities that have substantial capital or that have provided","page_number":82,"box":{"x":117,"y":227,"width":767,"height":12}},{"id":"4d95e83c-a1eb-44ed-a6e7-5669d994a9b2","block_type":"box","text":"the Fund with a third-party guaranty or other credit support. A Fund’s ability to use swap agreements","page_number":82,"box":{"x":116,"y":242,"width":751,"height":12}},{"id":"8e74963b-5c40-4994-afa0-42934816fa77","block_type":"box","text":"may be restricted by the tax rules applicable to registered investment companies.","page_number":82,"box":{"x":117,"y":258,"width":607,"height":12}},{"id":"d3e7d225-1098-4cba-abcd-35cc161310e9","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":82,"box":{"x":117,"y":289,"width":348,"height":12}},{"id":"4c40f393-be58-4d50-bb88-9a86e87fec8e","block_type":"box","text":"Certain Funds may enter into credit default swaps and","page_number":82,"box":{"x":466,"y":289,"width":407,"height":12}},{"id":"06f6bcc9-7b08-4a9f-bcd9-e5bf7c4e773d","block_type":"box","text":"similar instruments. Credit default swaps are standardized agreements in which the protection “buyer”","page_number":82,"box":{"x":116,"y":304,"width":760,"height":12}},{"id":"13b07a72-1cc9-49ea-8df7-c4f84b922f7d","block_type":"box","text":"pays the protection “seller” an up-front payment, or a periodic stream of payments, over the term of the","page_number":82,"box":{"x":117,"y":320,"width":768,"height":12}},{"id":"b18d167b-d3b0-47cb-bc20-04cdf106d58a","block_type":"box","text":"contract, provided generally that no credit event on a reference obligation has occurred. If a credit","page_number":82,"box":{"x":116,"y":335,"width":730,"height":12}},{"id":"6973f8df-29c6-4519-9477-6c9cf3f1db53","block_type":"box","text":"event occurs, the seller generally must pay the buyer the difference between the notional amount of","page_number":82,"box":{"x":116,"y":351,"width":745,"height":12}},{"id":"4b1d001b-e062-4a56-ace6-39fc91b8b059","block_type":"box","text":"the contract and the value of a portfolio of securities issued by the reference entity. A Fund may be","page_number":82,"box":{"x":116,"y":366,"width":738,"height":12}},{"id":"48096c06-74f6-4069-9318-93ca586b719e","block_type":"box","text":"either the buyer or seller in the transaction. The Funds may enter into credit default swaps that","page_number":82,"box":{"x":116,"y":382,"width":706,"height":12}},{"id":"a0494cb0-beea-43f7-93b2-a30335c290f6","block_type":"box","text":"reference the obligations of a single entity (“single-name CDS”) or the obligations of entities that make","page_number":82,"box":{"x":117,"y":397,"width":761,"height":12}},{"id":"2873b760-9829-4bfb-afc6-c78a3475f638","block_type":"box","text":"up an index (“index CDS”). References to “credit default swaps” shall collectively refer to single-name","page_number":82,"box":{"x":117,"y":413,"width":757,"height":12}},{"id":"e5d06d04-6d61-4181-b109-d83003193af0","block_type":"box","text":"CDS and index CDS.","page_number":82,"box":{"x":117,"y":428,"width":161,"height":10}},{"id":"6d54fa05-d64f-4627-ab3c-ee9647a01cbb","block_type":"box","text":"Credit default swaps have as reference obligations one or more securities or loans that are not","page_number":82,"box":{"x":117,"y":459,"width":706,"height":12}},{"id":"e220f3a7-73ff-4674-a085-237fceeac7e9","block_type":"box","text":"currently held by a Fund. In circumstances in which a Fund does not own the securities or loans that","page_number":82,"box":{"x":116,"y":475,"width":749,"height":12}},{"id":"fc055627-6d30-4c7b-920a-a22917a33f2a","block_type":"box","text":"are deliverable under a credit default swap, the Fund is exposed to the risk that deliverable securities","page_number":82,"box":{"x":116,"y":490,"width":755,"height":12}},{"id":"60fa97fe-ab85-44cb-96ef-5140c4d8c01d","block_type":"box","text":"will not be available in the market, or will be available only at unfavorable prices, as would be the case","page_number":82,"box":{"x":116,"y":506,"width":763,"height":12}},{"id":"ea399766-feee-46f1-9829-6792333aa470","block_type":"box","text":"in a so-called “short squeeze.” In certain instances of issuer defaults or restructurings, it has been","page_number":82,"box":{"x":117,"y":521,"width":729,"height":12}},{"id":"9ceab340-3d95-4570-b686-5e8f28f0c253","block_type":"box","text":"unclear under the standard industry documentation for credit default swaps whether or not a “credit","page_number":82,"box":{"x":117,"y":537,"width":739,"height":12}},{"id":"f175ae0e-11fd-4fd7-88b1-3c7200a4cbaf","block_type":"box","text":"event” triggering the seller’s payment obligation had occurred. Certain initiatives adopted by derivatives","page_number":82,"box":{"x":116,"y":552,"width":771,"height":12}},{"id":"54fdf121-3732-4827-8593-b9296619b5c8","block_type":"box","text":"market participants, including the International Swaps and Derivatives Association (“ISDA”), are","page_number":82,"box":{"x":117,"y":568,"width":713,"height":12}},{"id":"d32d62e0-d1d0-40bf-936e-a811da508e60","block_type":"box","text":"designed to implement uniform settlement terms into standard credit default swap documentation, as","page_number":82,"box":{"x":116,"y":583,"width":753,"height":12}},{"id":"73984bbc-a838-4245-a3d8-678f080ab5d3","block_type":"box","text":"well as refine the practices for the transparent conduct of the credit default swap market generally.","page_number":82,"box":{"x":116,"y":599,"width":735,"height":12}},{"id":"4648de64-55a0-4c6c-810a-9aaf586de1c3","block_type":"box","text":"Among these initiatives are the ISDA Credit Derivatives Determination Committee and the","page_number":82,"box":{"x":116,"y":614,"width":672,"height":12}},{"id":"763e004c-bbc7-404b-8949-8a8aa3a2d5a2","block_type":"box","text":"implementation of market-wide cash settlement protocols applicable to all market-standard credit","page_number":82,"box":{"x":117,"y":630,"width":722,"height":12}},{"id":"938cfa96-a305-40cd-8303-0eb095985286","block_type":"box","text":"default swaps. These initiatives are intended to reduce both the uncertainty as to the occurrence of","page_number":82,"box":{"x":116,"y":645,"width":739,"height":12}},{"id":"6ab114ed-631d-46d3-8832-20c07d832605","block_type":"box","text":"credit events and the risk of a “short squeeze” by providing that the ISDA Credit Derivatives","page_number":82,"box":{"x":116,"y":661,"width":679,"height":12}},{"id":"16390e23-0acb-4c1d-a1ae-c73f590cb33c","block_type":"box","text":"Determinations Committee will make determinations as to whether a credit event has occurred,","page_number":82,"box":{"x":117,"y":676,"width":704,"height":11}},{"id":"ceb5ae3d-986c-4d30-903c-c9360735e809","block_type":"box","text":"establish an auction to determine a settlement price and identify the deliverable securities for purposes","page_number":82,"box":{"x":116,"y":692,"width":763,"height":12}},{"id":"8b5d01f0-d380-4eb5-b5b6-1a659744757b","block_type":"box","text":"of the auction, although the ISDA Credit Derivatives Determinations Committee may in certain limited","page_number":82,"box":{"x":116,"y":707,"width":750,"height":12}},{"id":"a9a96ae6-fab3-40e7-91d1-9a5580310c6d","block_type":"box","text":"circumstances refrain from doing so. In the event the ISDA Credit Derivatives Determinations","page_number":82,"box":{"x":116,"y":723,"width":691,"height":12}},{"id":"7c16ca79-896a-49f7-9de8-8db5f5e25b33","block_type":"box","text":"Committee cannot reach a timely resolution with respect to a “credit event” or otherwise does not","page_number":82,"box":{"x":117,"y":738,"width":718,"height":12}},{"id":"c9bc5f53-2f2e-4577-be92-f3a6ad6ecfe0","block_type":"box","text":"establish a cash settlement auction, a Fund may not be able to realize the full value of the credit","page_number":82,"box":{"x":116,"y":754,"width":713,"height":12}},{"id":"685063a0-a96d-4369-b10d-8679d5967aba","block_type":"box","text":"default swap upon a default by the reference entity. Furthermore, a Fund may enter into certain credit","page_number":82,"box":{"x":116,"y":769,"width":753,"height":12}},{"id":"b6c3d7b1-9929-4f18-9b7f-545154ad5475","block_type":"box","text":"default swaps or similar instruments that may not be covered by these initiatives.","page_number":82,"box":{"x":116,"y":785,"width":598,"height":12}},{"id":"45b9e9f9-ccd9-48a3-983c-cf31ab9d0db7","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","page_number":82,"box":{"x":117,"y":816,"width":723,"height":12}},{"id":"8ad8b247-a755-4d00-981e-f0e7656a70cb","block_type":"box","text":"recover nothing should no credit event occur. If a Fund is a seller and a credit event occurs, the value","page_number":82,"box":{"x":117,"y":831,"width":757,"height":12}},{"id":"1111b849-f141-4c8b-a0c0-fa243a8758e9","block_type":"box","text":"of any deliverable obligation received by the Fund or the amount of cash settlement received by the","page_number":82,"box":{"x":116,"y":847,"width":744,"height":12}},{"id":"7d3bdc10-d311-4c0d-964d-f1e4639cdd1b","block_type":"box","text":"Fund pursuant to the relevant cash settlement auction, together with the up-front or periodic payments","page_number":82,"box":{"x":117,"y":862,"width":763,"height":12}},{"id":"68f127c1-0da8-4173-9411-59ee1049f435","block_type":"box","text":"previously received, may be less than the amount it pays to the buyer, resulting in a loss of value to the","page_number":82,"box":{"x":117,"y":878,"width":770,"height":12}},{"id":"d95bb53a-b5e9-46fc-a173-f896d588025a","block_type":"box","text":"II-23","page_number":82,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"cf858eab-1be3-49fc-9956-23b1d822c1c4","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":82,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"39b747fe-5a3b-48b5-86ac-e935dfb805a1","block_type":"box","text":"Fund. A Fund that sells credit default swaps incurs leveraged exposure to the credit of one or more","page_number":83,"box":{"x":117,"y":87,"width":739,"height":12}},{"id":"82bdd01b-15e4-4fc3-96ec-78c7e72a243d","block_type":"box","text":"reference entities and is subject to many of the same risks it would incur if it were holding debt","page_number":83,"box":{"x":117,"y":102,"width":703,"height":13}},{"id":"5fd16e32-c215-49b2-adaa-6072fb23b729","block_type":"box","text":"securities issued by the relevant reference entity. However, a Fund will not have any legal recourse","page_number":83,"box":{"x":116,"y":118,"width":742,"height":12}},{"id":"25398733-6650-453b-8677-5a77401889a4","block_type":"box","text":"against any reference entity and will not benefit from any collateral securing the reference entity’s debt","page_number":83,"box":{"x":116,"y":134,"width":764,"height":12}},{"id":"bab514c3-0e5c-4cd1-9b78-541594abaeb8","block_type":"box","text":"obligations. In the event the ISDA Credit Derivatives Determinations Committee does not establish a","page_number":83,"box":{"x":116,"y":149,"width":750,"height":12}},{"id":"67eb2630-6153-4b9a-adda-1019e9a63f4b","block_type":"box","text":"cash settlement auction and identify the relevant deliverable securities or loans, the credit default swap","page_number":83,"box":{"x":116,"y":165,"width":769,"height":12}},{"id":"9fedfb77-8d6e-4918-8567-26bf8de72a96","block_type":"box","text":"buyer will have broad discretion to select which of the reference entity’s debt obligations to deliver to","page_number":83,"box":{"x":117,"y":180,"width":748,"height":12}},{"id":"5bfc52d3-7e9b-4c39-99a9-4da09d068f93","block_type":"box","text":"the Fund following a credit event and will likely choose the obligations with the lowest market value in","page_number":83,"box":{"x":116,"y":196,"width":755,"height":12}},{"id":"b4b212ab-dd7a-4905-86fd-9ef2b609feac","block_type":"box","text":"order to maximize the payment obligations of the Fund. In addition, credit default swaps generally trade","page_number":83,"box":{"x":116,"y":211,"width":772,"height":12}},{"id":"5f1b616d-242c-4236-b299-571de2aac0f0","block_type":"box","text":"on the basis of theoretical pricing and valuation models, which may not accurately value such swap","page_number":83,"box":{"x":116,"y":227,"width":742,"height":12}},{"id":"4f87fa80-0e25-48d1-9ef2-3763999f9f5d","block_type":"box","text":"positions when established or when subsequently traded or unwound under actual market conditions.","page_number":83,"box":{"x":117,"y":242,"width":756,"height":12}},{"id":"d24fc61b-237a-4ce1-a058-4dff449dabfa","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for","page_number":83,"box":{"x":117,"y":274,"width":719,"height":13}},{"id":"12a63762-6862-4705-bbe3-535922877053","block_type":"box","text":"clearing to regulated clearinghouses. See “—Derivatives—Regulation of Derivatives—Dodd-Frank","page_number":83,"box":{"x":116,"y":290,"width":734,"height":12}},{"id":"d298c332-573b-4877-b2eb-1482e4cc4949","block_type":"box","text":"Regulations” above. Other single-name CDS and index CDS are permitted, although not required, to","page_number":83,"box":{"x":117,"y":305,"width":750,"height":13}},{"id":"81d861f5-2022-4fde-a836-60b5915dca90","block_type":"box","text":"be cleared through regulated clearinghouses. The Funds clear all credit default swaps that are subject","page_number":83,"box":{"x":117,"y":321,"width":762,"height":12}},{"id":"5e2b1de1-940f-4160-8ad3-10d9d98147c6","block_type":"box","text":"to mandatory clearing and may voluntarily clear some, but not all, of the other credit default swaps not","page_number":83,"box":{"x":116,"y":336,"width":762,"height":13}},{"id":"a848c82a-3033-43ad-a3cb-2c42aece6116","block_type":"box","text":"subject to mandatory clearing. The Funds face counterparty risk with respect to the clearinghouse","page_number":83,"box":{"x":116,"y":352,"width":731,"height":12}},{"id":"6f1afc5e-f563-47f9-b38d-4cfc44e77a03","block_type":"box","text":"when entering into cleared single-name CDS and cleared index CDS. The Funds face significant","page_number":83,"box":{"x":116,"y":367,"width":722,"height":13}},{"id":"65e174fc-85a8-46f3-b0ba-174838f0fc5f","block_type":"box","text":"counterparty risk with respect to their counterparties to non-cleared credit default swaps and similar","page_number":83,"box":{"x":116,"y":383,"width":743,"height":12}},{"id":"1cb88336-9275-4478-b53b-1f7eb4160e2c","block_type":"box","text":"instruments. A Fund typically will enter into non-cleared credit default swaps and similar instruments","page_number":83,"box":{"x":117,"y":398,"width":746,"height":13}},{"id":"6916e3e8-1262-4d9f-942f-bcf1bf97b38f","block_type":"box","text":"with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":83,"box":{"x":116,"y":414,"width":771,"height":12}},{"id":"c8fbace4-7c1f-4484-bdc8-7508f1ac1eac","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":83,"box":{"x":116,"y":430,"width":373,"height":12}},{"id":"817ddad6-1016-450d-bafc-c1175ac8beb2","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either","page_number":83,"box":{"x":117,"y":462,"width":755,"height":12}},{"id":"561ac5b3-ebf5-4e0a-9569-1481a76bc954","block_type":"box","text":"as protection buyer or protection seller. While these contracts are similar in their operation to the","page_number":83,"box":{"x":116,"y":477,"width":720,"height":12}},{"id":"12350d30-f4eb-4610-83ac-a9c5554f1053","block_type":"box","text":"market-standard credit default swaps described above, they are less standardized and instead have","page_number":83,"box":{"x":117,"y":493,"width":746,"height":12}},{"id":"be51e0ae-efc8-4959-9606-d377ee956ce8","block_type":"box","text":"bespoke or tailored features. For example, as compared to market-standard credit defaults, the range","page_number":83,"box":{"x":117,"y":508,"width":758,"height":12}},{"id":"24ac9c28-062f-4e29-887e-610307b3cbbd","block_type":"box","text":"of “credit events” triggering settlement of such bespoke contracts may be narrower or broader, any","page_number":83,"box":{"x":116,"y":524,"width":737,"height":12}},{"id":"1a0958b6-44b3-4aaf-ac61-96d91129f076","block_type":"box","text":"such triggered contracts are settled by physical delivery of the underlying security or loan to or by the","page_number":83,"box":{"x":116,"y":539,"width":755,"height":12}},{"id":"ae3a0675-1579-45bd-92f9-0d8ae58b8073","block_type":"box","text":"Fund rather than by way of cash settlement, and there may be a wider range of securities as the","page_number":83,"box":{"x":117,"y":555,"width":719,"height":12}},{"id":"a7f71935-4e79-4665-9e69-353fbce14465","block_type":"box","text":"reference obligations and/or deliverable obligations.","page_number":83,"box":{"x":117,"y":570,"width":388,"height":12}},{"id":"2627bf0e-6e6e-4b78-968c-c48f06c976e4","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund","page_number":83,"box":{"x":117,"y":603,"width":752,"height":12}},{"id":"4279e71c-494b-41a1-bd29-1f8d2d9634e9","block_type":"box","text":"had invested in the reference obligation directly and are subject to significant credit risk, correlation","page_number":83,"box":{"x":117,"y":618,"width":738,"height":12}},{"id":"ab328fe9-d613-408b-af49-870b92f1535a","block_type":"box","text":"risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":83,"box":{"x":117,"y":634,"width":684,"height":12}},{"id":"4b8c00b4-8173-4ac2-94e3-fd38ac8a1dd1","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":83,"box":{"x":117,"y":658,"width":292,"height":12}},{"id":"431522a1-120d-489d-98c6-d96dcf685344","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of","page_number":83,"box":{"x":410,"y":658,"width":450,"height":12}},{"id":"2380bbcf-57b1-4590-aa9f-0bd7f55aa668","block_type":"box","text":"interest rate swaps and interest rate caps and floors. As described in further detail below, a Fund may","page_number":83,"box":{"x":117,"y":673,"width":755,"height":12}},{"id":"342eb716-9346-4d99-9fb5-6f887e6fbeff","block_type":"box","text":"enter into these transactions primarily to preserve a return or spread on a particular investment or","page_number":83,"box":{"x":116,"y":689,"width":724,"height":12}},{"id":"63c80699-f9e0-4720-af2e-16c49ffcfd4f","block_type":"box","text":"portion of its holdings, as a duration management technique, to protect against an increase in the price","page_number":83,"box":{"x":117,"y":704,"width":762,"height":12}},{"id":"ef8bde48-cee4-42e6-b0d4-c94fb7d6cfb3","block_type":"box","text":"of securities a Fund anticipates purchasing at a later date, or for speculation to increase returns.","page_number":83,"box":{"x":116,"y":720,"width":712,"height":12}},{"id":"37ac8dd2-39b5-42ec-b817-8d63bd4ac39f","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted","page_number":83,"box":{"x":117,"y":752,"width":750,"height":12}},{"id":"6e8dec58-6614-4143-a6ac-df32bbcd357a","block_type":"box","text":"for clearing to regulated clearinghouses. See “—Regulation of Derivatives—Dodd-Frank Regulations”","page_number":83,"box":{"x":116,"y":767,"width":752,"height":13}},{"id":"53205a69-22b7-43ea-a18c-b315d0d4d693","block_type":"box","text":"above. Other interest rate swaps are permitted, although not required, to be cleared. Most of the","page_number":83,"box":{"x":116,"y":783,"width":715,"height":12}},{"id":"5e655668-afa3-4828-af67-2bcf0b33cff1","block_type":"box","text":"interest rate swaps entered into by the Funds are cleared. The Funds face counterparty risk with","page_number":83,"box":{"x":117,"y":798,"width":714,"height":13}},{"id":"b3e307f7-2aea-4e5b-8c66-5c0f4a5d320d","block_type":"box","text":"respect to the clearinghouse when entering into cleared interest rate swaps.","page_number":83,"box":{"x":117,"y":814,"width":561,"height":12}},{"id":"c7de9e59-a00e-408c-bc94-543685fce10f","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest","page_number":83,"box":{"x":116,"y":846,"width":764,"height":12}},{"id":"ef9843f0-50b8-4166-865b-9b0a4cb89967","block_type":"box","text":"rate swaps and interest rate caps and floors. The typical counterparties for a Fund’s non-cleared","page_number":83,"box":{"x":117,"y":862,"width":719,"height":12}},{"id":"83f1a40c-5cac-463e-815e-454039581a03","block_type":"box","text":"interest rate derivatives transactions are swap dealers and other creditworthy entities that have","page_number":83,"box":{"x":117,"y":878,"width":709,"height":11}},{"id":"0f023640-7848-4725-9f38-b49fb0f2fcb8","block_type":"box","text":"II-24","page_number":83,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"fcbf2bf5-0d41-406b-bf4e-7545d93b0411","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":83,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3ba291a3-566f-441f-829e-4047ff576be0","block_type":"box","text":"substantial capital or that have provided the Fund with a third-party guaranty or other credit support.","page_number":84,"box":{"x":116,"y":87,"width":746,"height":12}},{"id":"3f4c1cd0-0cb1-416b-9fd8-5b348da99a73","block_type":"box","text":"If the Fund’s counterparty defaults on such a transaction, a Fund will have contractual remedies with","page_number":84,"box":{"x":117,"y":102,"width":749,"height":13}},{"id":"03d7358c-4a11-48a1-b3d0-b098a0822709","block_type":"box","text":"respect to the transaction, but there can be no guarantee that the Fund will be successful in enforcing","page_number":84,"box":{"x":117,"y":118,"width":758,"height":12}},{"id":"5627b9e6-8ee8-486d-a653-dc547b73a710","block_type":"box","text":"such remedies. The market for interest rate swaps is relatively liquid in comparison with other similar","page_number":84,"box":{"x":116,"y":134,"width":751,"height":12}},{"id":"b0a05a89-1204-4810-8742-c3d8d3ffddc3","block_type":"box","text":"instruments traded in the interbank market. A Fund may be limited in its ability to enter into certain","page_number":84,"box":{"x":117,"y":149,"width":732,"height":12}},{"id":"ce56ac1b-ea1c-4617-a23e-d93a2bac2d7e","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":84,"box":{"x":117,"y":165,"width":503,"height":11}},{"id":"0923db5d-9234-471d-a16d-6ace78082bb2","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a","page_number":84,"box":{"x":117,"y":196,"width":762,"height":12}},{"id":"4157760b-d098-41d1-aeca-3daf08c9452e","block_type":"box","text":"fixed or variable interest rate, index or asset in return for periodic payments from its counterparty based","page_number":84,"box":{"x":116,"y":211,"width":772,"height":12}},{"id":"f3ec3d99-c6a6-4026-9c75-ddc2a01014ad","block_type":"box","text":"on a different fixed or variable interest rate, index or asset.","page_number":84,"box":{"x":116,"y":227,"width":439,"height":11}},{"id":"74c0773a-1218-4611-8b6b-608add20ae5d","block_type":"box","text":"The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls","page_number":84,"box":{"x":116,"y":258,"width":746,"height":11}},{"id":"96930525-0a64-4e2b-8703-806c6bd3d9a9","block_type":"box","text":"below a predetermined interest rate, to receive payments of interest on a notional principal amount","page_number":84,"box":{"x":117,"y":273,"width":736,"height":12}},{"id":"f8f1f7b1-621c-4d9d-a55b-2d45825e6865","block_type":"box","text":"from the party selling such interest rate floor.","page_number":84,"box":{"x":116,"y":289,"width":337,"height":12}},{"id":"a89aff37-2e92-4995-83a5-a8053404e1ed","block_type":"box","text":"The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index rises","page_number":84,"box":{"x":116,"y":320,"width":746,"height":12}},{"id":"25f012c8-0e4a-4aec-8e35-80d181b54321","block_type":"box","text":"above a predetermined interest rate, to receive payments of interest on a notional principal amount","page_number":84,"box":{"x":116,"y":335,"width":739,"height":12}},{"id":"6bad2879-aa04-43a0-addd-05dfefb81277","block_type":"box","text":"from the party selling such interest rate cap.","page_number":84,"box":{"x":116,"y":351,"width":331,"height":12}},{"id":"fc71e60e-a237-4fa4-b505-5bf47d33bf0e","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":84,"box":{"x":116,"y":382,"width":764,"height":12}},{"id":"3ae0ea2d-0349-4c2e-95ed-e7001bcbc889","block_type":"box","text":"commitments to pay or receive interest,","page_number":84,"box":{"x":116,"y":397,"width":298,"height":12}},{"id":"fcb34a16-2a3a-41bd-9ea6-53d3bc63a5b2","block_type":"box","text":"e.g.","page_number":84,"box":{"x":415,"y":400,"width":26,"height":9}},{"id":"335c228d-5764-428b-b8bb-77ec26fff7a9","block_type":"box","text":", an exchange of fixed rate payments for floating rate","page_number":84,"box":{"x":444,"y":397,"width":396,"height":12}},{"id":"ec03cdc6-e5a4-45b5-be26-c7a83abe50c4","block_type":"box","text":"payments. For example, if a Fund holds a mortgage-backed security with an interest rate that is reset","page_number":84,"box":{"x":117,"y":413,"width":755,"height":12}},{"id":"f09171dd-375e-4886-87dc-e1f1566dedc4","block_type":"box","text":"only once each year, it may swap the right to receive interest at this fixed rate for the right to receive","page_number":84,"box":{"x":116,"y":428,"width":748,"height":12}},{"id":"3b0549a2-3e8e-406f-8d61-a605a534c589","block_type":"box","text":"interest at a rate that is reset every week. This would enable a Fund to offset a decline in the value of","page_number":84,"box":{"x":117,"y":444,"width":755,"height":12}},{"id":"2b1ca5dd-ee71-4914-8d52-2a4ea4d53f1d","block_type":"box","text":"the mortgage-backed security due to rising interest rates but would also limit its ability to benefit from","page_number":84,"box":{"x":116,"y":459,"width":753,"height":12}},{"id":"27637361-f955-48da-8571-7ccdb250a366","block_type":"box","text":"falling interest rates. Conversely, if a Fund holds a mortgage-backed security with an interest rate that","page_number":84,"box":{"x":116,"y":475,"width":761,"height":12}},{"id":"53e6927d-b927-4c1d-b213-37a3fbe0f486","block_type":"box","text":"is reset every week and it would like to lock in what","page_number":84,"box":{"x":117,"y":490,"width":383,"height":12}},{"id":"c26f5868-94d9-45ec-8999-ac482666f16f","block_type":"box","text":"it believes to be a high interest rate for one year, it","page_number":84,"box":{"x":501,"y":490,"width":377,"height":12}},{"id":"71508d17-6596-4eb2-9f2a-ab800e349e3f","block_type":"box","text":"may swap the right to receive interest at this variable weekly rate for the right to receive interest at a","page_number":84,"box":{"x":117,"y":506,"width":746,"height":12}},{"id":"4d32653a-c969-4adf-afed-bd5e4bca24b4","block_type":"box","text":"rate that is fixed for one year. Such a swap would protect the Fund from a reduction in yield due to","page_number":84,"box":{"x":117,"y":521,"width":733,"height":12}},{"id":"0df511ec-1aca-43cc-9751-aa4b376765fd","block_type":"box","text":"falling interest rates and may permit the Fund to enhance its income through the positive differential","page_number":84,"box":{"x":116,"y":537,"width":745,"height":12}},{"id":"66b5f8fa-68fb-4c1e-a259-337c41540160","block_type":"box","text":"between one week and one year interest rates, but would preclude it from taking full advantage of","page_number":84,"box":{"x":117,"y":552,"width":729,"height":12}},{"id":"5424b7e1-4af5-4bdd-bf91-d78924f79f83","block_type":"box","text":"rising interest rates.","page_number":84,"box":{"x":117,"y":568,"width":150,"height":12}},{"id":"fc9df0d8-4b5f-4a60-b6b6-74191247ba2a","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary","page_number":84,"box":{"x":117,"y":599,"width":746,"height":12}},{"id":"8284969f-1a0f-4f8f-9e7a-1214cf7b6117","block_type":"box","text":"income or, in certain circumstances, as long term capital gains to shareholders.","page_number":84,"box":{"x":117,"y":614,"width":593,"height":12}},{"id":"e8f28b0e-1d64-4202-bb42-0ca3b2a4e715","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk,","page_number":84,"box":{"x":117,"y":645,"width":751,"height":12}},{"id":"75956ece-b4f5-448b-a107-745482873b56","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":84,"box":{"x":117,"y":661,"width":538,"height":12}},{"id":"7a636288-a624-4243-a47b-626c320e9926","block_type":"box","text":"Total Return Swaps.","page_number":84,"box":{"x":118,"y":692,"width":148,"height":12}},{"id":"f4e5e9ec-8bf0-4ad3-8d14-c729de141500","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic","page_number":84,"box":{"x":273,"y":692,"width":565,"height":12}},{"id":"1163adaa-06e9-432d-9ac0-415779efb031","block_type":"box","text":"payments to the other party based on the return of the assets underlying the contract in exchange for","page_number":84,"box":{"x":117,"y":707,"width":750,"height":12}},{"id":"8747a2ad-72fe-484a-a8a3-b8edbf87033f","block_type":"box","text":"periodic payments based on a fixed or variable interest rate or the total return from different underlying","page_number":84,"box":{"x":117,"y":723,"width":759,"height":12}},{"id":"45f81a8b-0811-44e3-b2db-f214f4e929c3","block_type":"box","text":"assets. The return of the assets underlying the contract includes both the income generated by the","page_number":84,"box":{"x":116,"y":738,"width":732,"height":12}},{"id":"e2a6e2a7-5fb7-42e7-b315-7dac81ac1bd2","block_type":"box","text":"asset and the change in market value of the asset. The asset underlying the contract may include a","page_number":84,"box":{"x":116,"y":754,"width":737,"height":12}},{"id":"4b39a557-a4de-492e-bb9b-1ab6d0fb5b8c","block_type":"box","text":"specified security, basket of securities or securities indices. Total return swaps on a specified security,","page_number":84,"box":{"x":116,"y":769,"width":757,"height":12}},{"id":"c4179e8d-07d3-4c0a-a872-bdbf23782d4e","block_type":"box","text":"basket of securities or securities indices may sometimes be referred to as “contracts for difference.”","page_number":84,"box":{"x":117,"y":785,"width":738,"height":12}},{"id":"3dcdc410-70a8-4123-9672-96a0a1bde370","block_type":"box","text":"Total return swaps may be used to obtain exposure to a security or market without owning or taking","page_number":84,"box":{"x":116,"y":816,"width":738,"height":12}},{"id":"b247ee8b-2883-4325-8828-a43f687f7a3b","block_type":"box","text":"physical custody of such security or investing directly in such market. Upon entering into a total return","page_number":84,"box":{"x":117,"y":831,"width":758,"height":12}},{"id":"a874c02b-3a61-480b-9c3f-84bdf5a94f71","block_type":"box","text":"swap, a Fund is required to deposit initial margin but the parties do not exchange the notional amount.","page_number":84,"box":{"x":116,"y":847,"width":763,"height":12}},{"id":"c602e392-be2c-4eb8-9478-43554c62db9b","block_type":"box","text":"As a result, total return swaps may effectively add leverage to the Fund’s portfolio because the Fund","page_number":84,"box":{"x":116,"y":862,"width":750,"height":12}},{"id":"12b71704-db11-4903-81f1-9cb04d8e0243","block_type":"box","text":"would be subject to investment exposure on the notional amount of the swap.","page_number":84,"box":{"x":116,"y":878,"width":580,"height":12}},{"id":"4ed995b1-1188-4c78-93d4-5aed1cfc0ee2","block_type":"box","text":"II-25","page_number":84,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"795a5f5f-6439-4217-9d29-0aae03352ffe","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":84,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"bdedc641-ec1a-424f-a417-248c8d5597cb","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk","page_number":85,"box":{"x":116,"y":87,"width":743,"height":12}},{"id":"d2a5df65-7dbc-41f0-ae14-76573733b79f","block_type":"box","text":"and counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":85,"box":{"x":116,"y":102,"width":488,"height":13}},{"id":"be575079-0634-4e6a-bcfa-565f1dc77a09","block_type":"box","text":"Options","page_number":85,"box":{"x":117,"y":143,"width":57,"height":12}},{"id":"b4cac53f-a4e9-4f21-abe5-e3322513dbb4","block_type":"box","text":".","page_number":85,"box":{"x":175,"y":151,"width":8,"height":1}},{"id":"d3bf9bed-44cc-4d66-8151-42e83f69872d","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":85,"box":{"x":117,"y":175,"width":337,"height":12}},{"id":"b2c4b0ec-14c9-46cf-a8c6-ae16c354f96f","block_type":"box","text":"A Fund may engage in transactions in options on","page_number":85,"box":{"x":454,"y":175,"width":370,"height":12}},{"id":"b1d503a5-2ba8-4f32-9abc-dcdda7547a99","block_type":"box","text":"individual securities, baskets of securities or securities indices, or particular measurements of value or","page_number":85,"box":{"x":117,"y":191,"width":761,"height":12}},{"id":"dbfd4d77-8008-414f-801d-e0a8c9ffdf20","block_type":"box","text":"rates, such as an index of the price of treasury securities or an index representative of short-term","page_number":85,"box":{"x":117,"y":206,"width":724,"height":12}},{"id":"d8aff9e0-75c9-4ffa-98fd-b630be3ec8c7","block_type":"box","text":"interest rates. Such investments may be made on exchanges and in the OTC markets. In general,","page_number":85,"box":{"x":117,"y":222,"width":732,"height":12}},{"id":"6b772635-c0e1-42e7-ae84-c851fc5a982f","block_type":"box","text":"exchange-traded options have standardized exercise prices and expiration dates and require the","page_number":85,"box":{"x":116,"y":237,"width":723,"height":12}},{"id":"5ecb3407-8e63-4c0b-9ae5-eaba0450d216","block_type":"box","text":"parties to post margin against their obligations, and the performance of the parties’ obligations in","page_number":85,"box":{"x":117,"y":253,"width":720,"height":12}},{"id":"f15d7430-4033-4300-b688-9734bd2f7310","block_type":"box","text":"connection with such options is guaranteed by the exchange or a related clearing corporation. OTC","page_number":85,"box":{"x":116,"y":268,"width":742,"height":12}},{"id":"383c7fce-74d1-43dd-a1d6-03c9917f4435","block_type":"box","text":"options have more flexible terms negotiated between the buyer and the seller, but are subject to","page_number":85,"box":{"x":116,"y":284,"width":717,"height":12}},{"id":"6464ad70-b652-423b-bc48-30f8bf672411","block_type":"box","text":"greater credit risk. OTC options also involve greater illiquidity risk.","page_number":85,"box":{"x":116,"y":299,"width":493,"height":12}},{"id":"2af71418-0989-47b7-b6aa-8b183cd2c70c","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in","page_number":85,"box":{"x":116,"y":331,"width":709,"height":12}},{"id":"20c94c8b-04ee-450b-9efe-94649c371964","block_type":"box","text":"different payment structures and/or expirations (commonly referred to as exotic options). For example,","page_number":85,"box":{"x":116,"y":347,"width":765,"height":12}},{"id":"8541e00e-e53f-4e3b-9473-578e5be0e027","block_type":"box","text":"barrier options are exotic options that can only be exercised (or automatically expire) if the price of the","page_number":85,"box":{"x":117,"y":362,"width":761,"height":12}},{"id":"c3388c23-49b1-41ef-ae65-e2d7665474cc","block_type":"box","text":"underlying asset reaches one or more predetermined levels on or before expiration. Binary options are","page_number":85,"box":{"x":117,"y":378,"width":765,"height":12}},{"id":"206ad3e0-f865-44b9-bc5b-eae0153c37a2","block_type":"box","text":"another example of exotic options which have a fixed all-or-nothing payout if one or more","page_number":85,"box":{"x":116,"y":393,"width":666,"height":12}},{"id":"9d1dd996-e058-4714-a58d-e7f3c34ee033","block_type":"box","text":"predetermined conditions are met. Exotic options are typically traded in OTC markets.","page_number":85,"box":{"x":117,"y":409,"width":641,"height":12}},{"id":"4716fb55-9c19-49cb-9ead-b5df943f2023","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example,","page_number":85,"box":{"x":116,"y":441,"width":770,"height":12}},{"id":"1ef1a344-d4a1-4a9f-82e4-2fd172a61d28","block_type":"box","text":"there are significant differences between the securities and options markets that could result in an","page_number":85,"box":{"x":116,"y":457,"width":731,"height":12}},{"id":"6e5cdb6e-6930-422b-bb56-251ee13a8b56","block_type":"box","text":"imperfect correlation between these markets, causing a given transaction not to achieve its objectives.","page_number":85,"box":{"x":117,"y":472,"width":763,"height":12}},{"id":"da017aa0-afc8-487e-892e-f48d0a65c58e","block_type":"box","text":"In addition, a liquid market for particular options, whether traded OTC or on a national securities","page_number":85,"box":{"x":117,"y":488,"width":716,"height":12}},{"id":"6c3463ba-ff60-4c0f-8bfb-c030a83fc5c6","block_type":"box","text":"exchange (“Exchange”) may be absent for reasons which include the following: there may be","page_number":85,"box":{"x":116,"y":503,"width":695,"height":12}},{"id":"6dc17f58-f00c-4c43-be2c-dc01e755f4d7","block_type":"box","text":"insufficient trading interest in certain options; restrictions may be imposed by an Exchange on opening","page_number":85,"box":{"x":117,"y":519,"width":763,"height":12}},{"id":"3cf64e7f-8763-4de1-ba1b-b772b3f8bb35","block_type":"box","text":"transactions or closing transactions or both; trading halts, suspensions or other restrictions may be","page_number":85,"box":{"x":116,"y":534,"width":737,"height":12}},{"id":"a629371d-0603-4b3d-a4ab-01b3452b2869","block_type":"box","text":"imposed with respect to particular classes or series of options or underlying securities; unusual or","page_number":85,"box":{"x":117,"y":550,"width":727,"height":12}},{"id":"48a9edb1-37ce-4bfd-8ebe-86bea3f0c013","block_type":"box","text":"unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an","page_number":85,"box":{"x":117,"y":565,"width":708,"height":12}},{"id":"bc2f60b5-045c-4b7a-9f9a-0d19d9441fd8","block_type":"box","text":"Exchange or the Options Clearing Corporation may not at all times be adequate to handle current","page_number":85,"box":{"x":117,"y":581,"width":728,"height":12}},{"id":"0d14ed46-8c37-4890-b2a0-322ef640a8ad","block_type":"box","text":"trading volume; or one or more Exchanges could, for economic or other reasons, decide or be","page_number":85,"box":{"x":116,"y":596,"width":703,"height":12}},{"id":"2956796d-72f8-4c35-aff5-98708fee6db7","block_type":"box","text":"compelled at some future date to discontinue the trading of options (or a particular class or series of","page_number":85,"box":{"x":116,"y":612,"width":746,"height":12}},{"id":"943f42dd-9428-4d44-85bb-0334bce6d662","block_type":"box","text":"options), in which event the market on that Exchange (or in that class or series of options) would cease","page_number":85,"box":{"x":116,"y":627,"width":770,"height":12}},{"id":"2d25fb04-c57d-4d0a-9a87-eb2aa01086f6","block_type":"box","text":"to exist, although outstanding options that had been issued by the Options Clearing Corporation as a","page_number":85,"box":{"x":116,"y":643,"width":753,"height":12}},{"id":"a246eaa1-f9dd-403e-87d9-753a623b1e90","block_type":"box","text":"result of trades on that Exchange would continue to be exercisable in accordance with their terms.","page_number":85,"box":{"x":117,"y":658,"width":732,"height":12}},{"id":"f5455b81-b499-4994-b83e-b3f2b9c6d920","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or","page_number":85,"box":{"x":117,"y":690,"width":745,"height":12}},{"id":"a65ad4e9-3c21-4a7f-829d-1431f008c249","block_type":"box","text":"put options on the same asset that may be bought or written by a single investor, whether acting alone","page_number":85,"box":{"x":117,"y":706,"width":759,"height":12}},{"id":"3fb66a2e-1034-4e73-9899-adf427c57234","block_type":"box","text":"or in concert with others (regardless of whether such options are written on the same or different","page_number":85,"box":{"x":116,"y":721,"width":716,"height":12}},{"id":"319c9eb4-62e8-402c-b19b-022195ef9a3e","block_type":"box","text":"exchanges or are held or written on one or more accounts or through one or more brokers). Under","page_number":85,"box":{"x":116,"y":737,"width":730,"height":12}},{"id":"9ab4b89f-e7bb-4daa-98af-2b743456c512","block_type":"box","text":"these limitations, option positions of all investment companies advised by the Manager are combined","page_number":85,"box":{"x":116,"y":752,"width":749,"height":12}},{"id":"ab61414c-a427-4963-b308-3f4025b5801f","block_type":"box","text":"for purposes of these limits. Pursuant to these limitations, an exchange may order the liquidation of","page_number":85,"box":{"x":116,"y":768,"width":736,"height":12}},{"id":"1bf5badb-6ad9-4557-afea-05b889d07afd","block_type":"box","text":"positions and may impose other sanctions or restrictions. These position limits may restrict the number","page_number":85,"box":{"x":117,"y":783,"width":762,"height":12}},{"id":"32eb3a25-862a-4538-a1c2-03340fdce1d6","block_type":"box","text":"of listed options that a Fund may buy or sell.","page_number":85,"box":{"x":116,"y":799,"width":328,"height":12}},{"id":"e9d9f93b-54e4-45c9-8292-b4d84a2e43fa","block_type":"box","text":"Call Options.","page_number":85,"box":{"x":117,"y":831,"width":100,"height":12}},{"id":"166557d4-19cc-450b-8be2-bb16b2dcf53a","block_type":"box","text":"A Fund may purchase call options on any of the types of securities or instruments in","page_number":85,"box":{"x":217,"y":831,"width":629,"height":12}},{"id":"1bde7a98-fd2a-4226-a4da-57dea2619df0","block_type":"box","text":"which it may invest. A purchased call option gives a Fund the right to buy, and obligates the seller to","page_number":85,"box":{"x":116,"y":847,"width":748,"height":12}},{"id":"f42529db-7068-46c6-ad40-f7cf8d4c6054","block_type":"box","text":"sell, the underlying security at the exercise price at any time during the option period. A Fund also may","page_number":85,"box":{"x":116,"y":862,"width":767,"height":12}},{"id":"8882f342-045f-4d43-ae22-93564d7b0d82","block_type":"box","text":"purchase and sell call options on indices. Index options are similar to options on securities except that,","page_number":85,"box":{"x":117,"y":878,"width":765,"height":11}},{"id":"b4a34cc9-7526-481e-ab4a-0740df5a4614","block_type":"box","text":"II-26","page_number":85,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"29ce97f5-cce7-4b7c-9a86-a10bc75604a1","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":85,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"51a41589-b247-49b9-8de8-0c599190faea","block_type":"box","text":"rather than taking or making delivery of securities underlying the option at a specified price upon","page_number":86,"box":{"x":117,"y":87,"width":718,"height":12}},{"id":"8a74c5d1-4f4c-46c5-baaf-a727cb0db09d","block_type":"box","text":"exercise, an index option gives the holder the right to receive cash upon exercise of the option if the","page_number":86,"box":{"x":116,"y":102,"width":745,"height":13}},{"id":"d2403a0e-1372-4dba-b41b-adf8003e3446","block_type":"box","text":"level of the index upon which the option is based is greater than the exercise price of the option.","page_number":86,"box":{"x":117,"y":118,"width":716,"height":12}},{"id":"2c52ab2b-d9c7-4be2-98be-757c8871a48e","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","page_number":86,"box":{"x":116,"y":146,"width":750,"height":12}},{"id":"4abe2d51-a95a-44b4-ae5a-4623fe583541","block_type":"box","text":"where the exercise price of the call held is (i) equal to or less than the exercise price of the call written,","page_number":86,"box":{"x":116,"y":161,"width":765,"height":13}},{"id":"94733a5c-26a5-457b-8a94-818ec3186b7c","block_type":"box","text":"or (ii) greater than the exercise price of the call written provided the difference is maintained by the","page_number":86,"box":{"x":116,"y":177,"width":736,"height":12}},{"id":"ee0ca4a2-fd30-47cd-b56f-4158e7886911","block_type":"box","text":"Fund in assets which are not considered illiquid investments under the Funds’ Liquidity Program (as","page_number":86,"box":{"x":117,"y":192,"width":745,"height":13}},{"id":"921175ea-1ada-4f2a-8b74-f986979ef3bb","block_type":"box","text":"defined below) (“liquid assets”) designated on the Manager’s or the sub-adviser’s books and records to","page_number":86,"box":{"x":116,"y":208,"width":769,"height":12}},{"id":"59cf94b6-99a6-4560-8d53-25cd7e032303","block_type":"box","text":"the extent required by Commission guidelines.","page_number":86,"box":{"x":116,"y":223,"width":350,"height":13}},{"id":"ab38eb6a-883f-406e-8deb-c56ecdec6335","block_type":"box","text":"A Fund may write (","page_number":86,"box":{"x":116,"y":251,"width":140,"height":12}},{"id":"36774959-f8b6-49c1-af70-a9dda743be37","block_type":"box","text":"i.e.","page_number":86,"box":{"x":257,"y":251,"width":21,"height":10}},{"id":"cd5835a4-fb27-474a-a4c5-724b1dd083e2","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest","page_number":86,"box":{"x":281,"y":251,"width":599,"height":12}},{"id":"3fbcb024-c789-473b-9cf7-22c1f3d61eac","block_type":"box","text":"and to enter into closing purchase transactions with respect to certain of such options. A covered call","page_number":86,"box":{"x":116,"y":267,"width":754,"height":12}},{"id":"a8976afb-9373-4ce2-83a3-b889259b9dd8","block_type":"box","text":"option is an option in which a Fund, in return for a premium, gives another party a right to buy specified","page_number":86,"box":{"x":116,"y":282,"width":769,"height":12}},{"id":"c2ac519c-d2bf-435c-bb58-a0369bcea4ee","block_type":"box","text":"securities owned by the Fund at a specified future date and price set at the time of the contract. The","page_number":86,"box":{"x":116,"y":298,"width":747,"height":12}},{"id":"df26149d-7014-4b0f-a9d9-6e8f245cd7f6","block_type":"box","text":"principal reason for writing call options is the attempt to realize, through the receipt of premiums, a","page_number":86,"box":{"x":117,"y":313,"width":733,"height":12}},{"id":"e24df76c-e772-45e0-9490-11ee0c2a182a","block_type":"box","text":"greater return than would be realized on the securities alone. By writing covered call options, a Fund","page_number":86,"box":{"x":116,"y":329,"width":750,"height":12}},{"id":"26a5bd9a-266f-487d-b075-9752e41e4e8e","block_type":"box","text":"gives up the opportunity, while the option is in effect, to profit from any price increase in the underlying","page_number":86,"box":{"x":116,"y":344,"width":763,"height":12}},{"id":"a72acbbf-8798-433e-9ffa-6d0715689fd8","block_type":"box","text":"security above the option exercise price. In addition, a Fund’s ability to sell the underlying security will","page_number":86,"box":{"x":116,"y":360,"width":758,"height":12}},{"id":"5d6980b1-a2d9-43c1-8ec5-d6646b9b9f71","block_type":"box","text":"be limited while the option is in effect unless the Fund enters into a closing purchase transaction. A","page_number":86,"box":{"x":117,"y":375,"width":738,"height":12}},{"id":"786b6cef-4e6e-40d5-ba3a-4f0e324b5870","block_type":"box","text":"closing purchase transaction cancels out a Fund’s position as the writer of an option by means of an","page_number":86,"box":{"x":116,"y":391,"width":748,"height":12}},{"id":"da00642b-b9eb-4a86-b6b0-36bdd8d15f84","block_type":"box","text":"offsetting purchase of an identical option prior to the expiration of the option it has written. Covered call","page_number":86,"box":{"x":116,"y":406,"width":768,"height":12}},{"id":"efb1746b-6a1e-4650-a997-dc95df4dd071","block_type":"box","text":"options also serve as a partial hedge to the extent of the premium received against the price of the","page_number":86,"box":{"x":116,"y":422,"width":736,"height":12}},{"id":"4d6226e6-1f73-45c6-b64f-c2d345fe4336","block_type":"box","text":"underlying security declining.","page_number":86,"box":{"x":117,"y":438,"width":219,"height":11}},{"id":"2a007a9a-b7f2-4f5d-8584-cc086b45b43c","block_type":"box","text":"A Fund may write (","page_number":86,"box":{"x":116,"y":465,"width":140,"height":12}},{"id":"76db09b0-8b0e-458e-8a0e-11218b4ffab1","block_type":"box","text":"i.e.","page_number":86,"box":{"x":257,"y":465,"width":21,"height":10}},{"id":"735a26a4-ea85-4d08-8836-47fae6ef4f20","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest","page_number":86,"box":{"x":281,"y":465,"width":590,"height":12}},{"id":"01321e5d-039e-4ac5-b350-e23a88186569","block_type":"box","text":"but that are not currently held by the Fund. The principal reason for writing uncovered call options is to","page_number":86,"box":{"x":117,"y":481,"width":763,"height":12}},{"id":"560584fd-8863-42d4-8ba0-980ab97096b8","block_type":"box","text":"realize income without committing capital to the ownership of the underlying securities or instruments.","page_number":86,"box":{"x":117,"y":496,"width":758,"height":12}},{"id":"c81168a6-cb33-43ce-8fc9-2b7cc41d7ded","block_type":"box","text":"When writing uncovered call options, a Fund must deposit and maintain sufficient margin with the","page_number":86,"box":{"x":116,"y":512,"width":727,"height":12}},{"id":"f6effa53-67f2-4438-834c-bf13d237b483","block_type":"box","text":"broker-dealer through which it made the uncovered call option as collateral to ensure that the securities","page_number":86,"box":{"x":117,"y":527,"width":771,"height":12}},{"id":"79f7f8e8-1819-4c17-b11d-3164c5f56fec","block_type":"box","text":"can be purchased for delivery if and when the option is exercised. During periods of declining","page_number":86,"box":{"x":116,"y":543,"width":697,"height":12}},{"id":"f511ac17-d61a-4d16-8188-b00acdcf9b52","block_type":"box","text":"securities prices or when prices are stable, writing uncovered calls can be a profitable strategy to","page_number":86,"box":{"x":116,"y":558,"width":724,"height":12}},{"id":"f1d1b80b-6c17-4f96-84a0-5b99c492c790","block_type":"box","text":"increase a Fund’s income with minimal capital risk. Uncovered calls are riskier than covered calls","page_number":86,"box":{"x":117,"y":574,"width":724,"height":12}},{"id":"91c788af-3578-4b30-a651-41289f17b3d3","block_type":"box","text":"because there is no underlying security held by a Fund that can act as a partial hedge. Uncovered calls","page_number":86,"box":{"x":117,"y":589,"width":771,"height":12}},{"id":"e10d1de0-df5d-41b8-8a98-4798bdcd5cb7","block_type":"box","text":"have speculative characteristics and the potential for loss is unlimited. When an uncovered call is","page_number":86,"box":{"x":117,"y":605,"width":725,"height":12}},{"id":"8a210bf1-6f6a-41f9-a0c5-b8fd124fc8ea","block_type":"box","text":"exercised, a Fund must purchase the underlying security to meet its call obligation. There is also a risk,","page_number":86,"box":{"x":116,"y":620,"width":771,"height":12}},{"id":"c59e61b9-9c6a-4624-9e16-8a9be16ffdf2","block_type":"box","text":"especially with preferred and debt securities that lack sufficient liquidity, that the securities may not be","page_number":86,"box":{"x":116,"y":636,"width":760,"height":12}},{"id":"85e6fc24-c836-4ba8-b45c-79f381bb7756","block_type":"box","text":"available for purchase. If the purchase price exceeds the exercise price, a Fund will lose the difference.","page_number":86,"box":{"x":116,"y":651,"width":772,"height":12}},{"id":"8df396d5-b7fe-4637-a393-93898bcdb7e3","block_type":"box","text":"Put Options.","page_number":86,"box":{"x":116,"y":679,"width":91,"height":12}},{"id":"be2dc360-130b-496d-bdfb-6344f8ce2044","block_type":"box","text":"A Fund may purchase put options to seek to hedge against a decline in the value of its","page_number":86,"box":{"x":213,"y":679,"width":642,"height":12}},{"id":"3c559286-588d-4627-8e05-a13ddf36b165","block_type":"box","text":"securities or to enhance its return. By buying a put option, a Fund acquires a right to sell the underlying","page_number":86,"box":{"x":116,"y":695,"width":764,"height":12}},{"id":"88cfc88b-2ff7-497a-bb40-a073a965c086","block_type":"box","text":"securities or instruments at the exercise price, thus limiting the Fund’s risk of loss through a decline in","page_number":86,"box":{"x":116,"y":710,"width":754,"height":12}},{"id":"72da8d3d-e2d9-437b-b5bd-f4afbf63e50c","block_type":"box","text":"the market value of the securities or instruments until the put option expires. The amount of any","page_number":86,"box":{"x":116,"y":726,"width":709,"height":12}},{"id":"2f32529e-3fb1-4d5c-a314-59124cbc9568","block_type":"box","text":"appreciation in the value of the underlying securities or instruments will be partially offset by the","page_number":86,"box":{"x":116,"y":741,"width":708,"height":12}},{"id":"30157a6f-26ed-43ba-8219-e5194bf77a47","block_type":"box","text":"amount of the premium paid for the put option and any related transaction costs. Prior to its expiration,","page_number":86,"box":{"x":116,"y":757,"width":758,"height":12}},{"id":"f6e637a0-9dab-455c-948c-71ad95d9f8ed","block_type":"box","text":"a put option may be sold in a closing sale transaction and profit or loss from the sale will depend on","page_number":86,"box":{"x":116,"y":772,"width":737,"height":12}},{"id":"8fdcd2e5-e91d-41ea-911b-1df6ec6abf23","block_type":"box","text":"whether the amount received is more or less than the premium paid for the put option plus the related","page_number":86,"box":{"x":116,"y":788,"width":753,"height":12}},{"id":"c8a30b9d-33a3-49d0-91f1-8a6a90c16c8b","block_type":"box","text":"transaction costs. A closing sale transaction cancels out a Fund’s position as the purchaser of an","page_number":86,"box":{"x":116,"y":803,"width":719,"height":12}},{"id":"549329b2-f0a9-4b02-9f47-6e11a4bbc507","block_type":"box","text":"option by means of an offsetting sale of an identical option prior to the expiration of the option it has","page_number":86,"box":{"x":116,"y":819,"width":737,"height":12}},{"id":"545d3c5d-2aa1-4f74-afdc-c40d242a910f","block_type":"box","text":"purchased. A Fund also may purchase uncovered put options.","page_number":86,"box":{"x":117,"y":834,"width":467,"height":12}},{"id":"897d9625-80aa-45d3-b1e9-53880c0260ba","block_type":"box","text":"A Fund also may write (","page_number":86,"box":{"x":116,"y":862,"width":176,"height":12}},{"id":"5892ff6e-e607-4e9b-ae9e-45b1a1e29190","block_type":"box","text":"i.e.","page_number":86,"box":{"x":293,"y":862,"width":20,"height":10}},{"id":"402e16dc-54e1-4953-9952-153a78dd5157","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held","page_number":86,"box":{"x":316,"y":862,"width":563,"height":12}},{"id":"0a805087-3733-43de-9748-297b227e803e","block_type":"box","text":"by the Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":86,"box":{"x":117,"y":878,"width":763,"height":12}},{"id":"d9775afe-ad8a-4514-a47a-90d65940b022","block_type":"box","text":"II-27","page_number":86,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"07d7a3ec-828f-484c-80fd-e4e809327db2","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":86,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"110b38b2-7051-4ee8-8b65-120dabe4c169","block_type":"box","text":"A Fund also may write (","page_number":87,"box":{"x":116,"y":87,"width":176,"height":12}},{"id":"2ddb7bf4-d431-4a3a-a518-421701930e8d","block_type":"box","text":"i.e.","page_number":87,"box":{"x":293,"y":87,"width":20,"height":10}},{"id":"f3913312-3eb9-4638-8b4c-1da5ecf42c00","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may","page_number":87,"box":{"x":316,"y":87,"width":540,"height":12}},{"id":"bb513999-04cd-4bd5-ad57-233bc9b5002d","block_type":"box","text":"invest but with respect to which the Fund does not currently have a corresponding short position or has","page_number":87,"box":{"x":117,"y":103,"width":769,"height":12}},{"id":"aac2e073-d5cb-4f6d-8e77-001099276fb6","block_type":"box","text":"not deposited as collateral cash equal to the exercise value of the put option with the broker-dealer","page_number":87,"box":{"x":117,"y":118,"width":737,"height":12}},{"id":"c08669c7-2522-44a9-8c06-54c81fa3b145","block_type":"box","text":"through which it made the uncovered put option. The principal reason for writing uncovered put options","page_number":87,"box":{"x":116,"y":134,"width":769,"height":12}},{"id":"d6a4f508-ef9f-4959-ba19-ab213319a4a7","block_type":"box","text":"is to receive premium income and to acquire such securities or instruments at a net cost below the","page_number":87,"box":{"x":117,"y":149,"width":734,"height":12}},{"id":"d0877dc1-c81d-4e3f-8634-7d502d422025","block_type":"box","text":"current market value. A Fund has the obligation to buy the securities or instruments at an agreed upon","page_number":87,"box":{"x":116,"y":165,"width":765,"height":12}},{"id":"388efc5c-84ee-40f0-9f4c-ff482d84e3fd","block_type":"box","text":"price if the price of the securities or instruments decreases below the exercise price. If the price of the","page_number":87,"box":{"x":117,"y":180,"width":759,"height":12}},{"id":"f9881db5-ca98-4462-b1e1-eb34346b48ae","block_type":"box","text":"securities or instruments increases during the option period, the option will expire worthless and a","page_number":87,"box":{"x":116,"y":196,"width":729,"height":12}},{"id":"7c497fd1-00d4-4b32-8ad4-f6d0576efe25","block_type":"box","text":"Fund will retain the premium and will not have to purchase the securities or instruments at the exercise","page_number":87,"box":{"x":117,"y":211,"width":767,"height":12}},{"id":"884c1f08-4724-40b0-b165-66900e145fa3","block_type":"box","text":"price.","page_number":87,"box":{"x":117,"y":227,"width":45,"height":11}},{"id":"47201004-0650-45ea-b379-795cd55030eb","block_type":"box","text":"Options on Government National Mortgage Association (“GNMA”) Certificates.","page_number":87,"box":{"x":117,"y":258,"width":586,"height":12}},{"id":"68dc0ce4-5e19-445c-b5eb-e0d6c659fad4","block_type":"box","text":"The following","page_number":87,"box":{"x":704,"y":258,"width":103,"height":12}},{"id":"bcf53153-a56f-41ca-b8cd-a7d6914ccf8a","block_type":"box","text":"information relates to the unique characteristics of options on GNMA Certificates. Since the remaining","page_number":87,"box":{"x":117,"y":273,"width":759,"height":12}},{"id":"2b84429e-7e46-48ab-8d22-e85a5b9c9fa9","block_type":"box","text":"principal balance of GNMA Certificates declines each month as a result of mortgage payments, a","page_number":87,"box":{"x":117,"y":289,"width":725,"height":12}},{"id":"4c08437c-a3e5-4f3d-9af6-1a73bc95414c","block_type":"box","text":"Fund, as a writer of a GNMA call holding GNMA Certificates as “cover” to satisfy its delivery obligation","page_number":87,"box":{"x":117,"y":304,"width":761,"height":12}},{"id":"401963b6-9427-4dd2-a81e-4c0ba38cedd9","block_type":"box","text":"in the event of exercise, may find that the GNMA Certificates it holds no longer have a sufficient","page_number":87,"box":{"x":117,"y":320,"width":714,"height":12}},{"id":"5bd2312f-66e4-41f6-a958-16e26d9b3e50","block_type":"box","text":"remaining principal balance for this purpose. Should this occur, a Fund will purchase additional GNMA","page_number":87,"box":{"x":117,"y":335,"width":763,"height":12}},{"id":"038c6f79-abba-4ed7-acb5-442ace159b2b","block_type":"box","text":"Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash market in order","page_number":87,"box":{"x":117,"y":351,"width":754,"height":12}},{"id":"b56e1e4b-a12e-4a2f-b038-7d60809e5fe9","block_type":"box","text":"to maintain its “cover.”","page_number":87,"box":{"x":116,"y":366,"width":170,"height":10}},{"id":"7b6d999f-eba8-4049-97e0-25f488ba5dfb","block_type":"box","text":"A GNMA Certificate held by a Fund to cover an option position in any but the nearest expiration month","page_number":87,"box":{"x":116,"y":397,"width":764,"height":12}},{"id":"f2fdae6b-d4fb-47e9-8261-9adb21bae7be","block_type":"box","text":"may cease to represent cover for the option in the event of a decline in the GNMA coupon rate at","page_number":87,"box":{"x":117,"y":413,"width":724,"height":12}},{"id":"4b41dce7-77f3-4a96-b41e-9deea63aa46d","block_type":"box","text":"which new pools are originated under the FHA/VA loan ceiling in effect at any given time. If this should","page_number":87,"box":{"x":116,"y":428,"width":765,"height":12}},{"id":"03dddb3d-22f7-450f-8194-83deca883f7f","block_type":"box","text":"occur, a Fund will no longer be covered, and the Fund will either enter into a closing purchase","page_number":87,"box":{"x":116,"y":444,"width":701,"height":12}},{"id":"8f2798c5-5d6d-43fd-95c6-aa0d0b6f2308","block_type":"box","text":"transaction or replace such Certificate with a certificate that represents cover. When a Fund closes its","page_number":87,"box":{"x":116,"y":459,"width":760,"height":12}},{"id":"3288c5ef-be41-4bd5-8d62-91892b6dffd0","block_type":"box","text":"position or replaces such Certificate, it may realize an unanticipated loss and incur transaction costs.","page_number":87,"box":{"x":117,"y":475,"width":751,"height":12}},{"id":"3d2d5a81-c645-49b7-902f-6e5cdf2c1dac","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":87,"box":{"x":117,"y":506,"width":243,"height":12}},{"id":"70bd1025-fc09-4e76-acc0-a4b6a24020ae","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to","page_number":87,"box":{"x":362,"y":506,"width":517,"height":12}},{"id":"0ab26059-36a6-47eb-ab88-888cfe870ebf","block_type":"box","text":"enter into a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap","page_number":87,"box":{"x":116,"y":521,"width":750,"height":12}},{"id":"e3e5589b-f5e6-4a8a-8c9b-69a3dd07da7e","block_type":"box","text":"agreement, at a designated future time on specified terms. A Fund may write (","page_number":87,"box":{"x":116,"y":537,"width":580,"height":12}},{"id":"ee87abb4-a635-492c-ab5b-6c7da9081487","block_type":"box","text":"i.e.","page_number":87,"box":{"x":698,"y":537,"width":20,"height":9}},{"id":"a7985ea4-0fc6-4ec2-a353-c7c2abfb297e","block_type":"box","text":", sell) and purchase","page_number":87,"box":{"x":721,"y":537,"width":150,"height":12}},{"id":"e939079f-1e1b-49b8-80e7-636dbc1a289f","block_type":"box","text":"put and call swaptions. Depending on the terms of the particular option agreement, a Fund will","page_number":87,"box":{"x":117,"y":552,"width":704,"height":12}},{"id":"96db12d3-6530-4e13-a3e5-54d2c39058a8","block_type":"box","text":"generally incur a greater degree of risk when it writes a swaption than it will incur when it purchases a","page_number":87,"box":{"x":116,"y":568,"width":758,"height":12}},{"id":"71d837ce-d0ac-466c-8679-df31eb1bb8de","block_type":"box","text":"swaption. When a Fund purchases a swaption, it risks losing only the amount of the premium it has","page_number":87,"box":{"x":116,"y":583,"width":741,"height":12}},{"id":"31b9bf5e-a197-4e2a-8c9e-333af07e31b3","block_type":"box","text":"paid should it decide to let the option expire unexercised. However, when a Fund writes a swaption,","page_number":87,"box":{"x":117,"y":599,"width":743,"height":12}},{"id":"1d308fe2-755f-4585-b9e8-612dda78ab65","block_type":"box","text":"upon exercise of the option the Fund will become obligated according to the terms of the underlying","page_number":87,"box":{"x":117,"y":614,"width":743,"height":12}},{"id":"bfeaea33-b944-4adf-a1b8-0fe5bd2bd494","block_type":"box","text":"agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":87,"box":{"x":116,"y":630,"width":754,"height":12}},{"id":"fed6596d-770e-4e31-b6be-3f1de585c35c","block_type":"box","text":"required, to be cleared.","page_number":87,"box":{"x":117,"y":645,"width":177,"height":12}},{"id":"b7b3ea5e-d206-474f-a247-e105da90aa9b","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a particular investment","page_number":87,"box":{"x":116,"y":676,"width":765,"height":12}},{"id":"84a37a73-5443-4fe6-bd4a-30eb2c752621","block_type":"box","text":"or portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates","page_number":87,"box":{"x":116,"y":692,"width":767,"height":12}},{"id":"a7d21c2e-9874-48d0-99af-a6f140b3f146","block_type":"box","text":"purchasing at a later date. A Fund generally will use these transactions for hedging purposes, not for","page_number":87,"box":{"x":117,"y":707,"width":746,"height":12}},{"id":"de2f9acb-4a69-49fa-b4d8-c20786fc7732","block_type":"box","text":"speculation.","page_number":87,"box":{"x":116,"y":723,"width":88,"height":12}},{"id":"26889588-5aa5-4cd5-b029-862830d71d87","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “— Risk","page_number":87,"box":{"x":116,"y":754,"width":760,"height":12}},{"id":"449ea062-a92e-4f4e-9bd5-c09884bdc849","block_type":"box","text":"Factors in Derivatives” above.","page_number":87,"box":{"x":117,"y":769,"width":220,"height":10}},{"id":"d624d148-b4f3-4c65-a549-cb42a8355461","block_type":"box","text":"FLEX Options.","page_number":87,"box":{"x":116,"y":800,"width":107,"height":12}},{"id":"d454bdb4-a0a7-4d73-a53e-fc4230c9cd29","block_type":"box","text":"FLEX Options are customized option contracts available through national securities","page_number":87,"box":{"x":231,"y":800,"width":617,"height":12}},{"id":"684a8efd-6828-407f-a5b9-6c1bf650a890","block_type":"box","text":"exchanges that are guaranteed for settlement by the Options Clearing Corporation (“OCC”). FLEX","page_number":87,"box":{"x":116,"y":816,"width":729,"height":12}},{"id":"d5c21570-e849-46e6-bf2c-17c67d41cf06","block_type":"box","text":"Options are listed on a U.S. national securities exchange. FLEX Options provide investors with the","page_number":87,"box":{"x":116,"y":831,"width":736,"height":12}},{"id":"5cac3242-627e-40a1-b6c5-ef907c401395","block_type":"box","text":"ability to customize assets referenced by the options, exercise prices, exercise styles (i.e., American","page_number":87,"box":{"x":116,"y":847,"width":750,"height":12}},{"id":"12f7fd4f-4dcb-4494-bb3f-f0952a09b5e1","block_type":"box","text":"style, exercisable any time prior to the expiration date, or European-style, exercisable only on the","page_number":87,"box":{"x":116,"y":862,"width":726,"height":12}},{"id":"325f63eb-fd54-4afa-9aeb-9f3d4f84d535","block_type":"box","text":"option expiration date) and expiration dates, while achieving price discovery in competitive, transparent","page_number":87,"box":{"x":116,"y":878,"width":769,"height":12}},{"id":"13648e6d-bd60-44e5-a762-94f5bbe2aee5","block_type":"box","text":"II-28","page_number":87,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"b313931a-1d5a-4df4-a855-f1cfecad7286","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":87,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"be15f68f-0ef8-40fa-a19c-0c3770de1bac","block_type":"box","text":"auctions markets and avoiding the counterparty exposure of OTC options positions. Each option","page_number":88,"box":{"x":116,"y":87,"width":719,"height":12}},{"id":"6afaa066-99f7-4f3f-9308-3f1ef1845bcc","block_type":"box","text":"contract entitles the holder thereof to purchase (for the","page_number":88,"box":{"x":116,"y":102,"width":410,"height":13}},{"id":"0ac76c97-25c4-44c5-a4d2-3c819609f94f","block_type":"box","text":"call options) or sell (for the put options) shares","page_number":88,"box":{"x":527,"y":102,"width":349,"height":13}},{"id":"fd503e61-43d4-4dc8-8def-d7800427bcce","block_type":"box","text":"of the reference asset at the strike price. A Fund’s portfolio may include several types of FLEX Options,","page_number":88,"box":{"x":116,"y":118,"width":772,"height":12}},{"id":"697d0a55-fdd5-41ec-8fbe-6323c03dd152","block_type":"box","text":"including both purchased and written put and call options (as further described below). The FLEX","page_number":88,"box":{"x":117,"y":134,"width":726,"height":12}},{"id":"589a0743-08b4-4ac2-97eb-9090249af24b","block_type":"box","text":"Options are all European style options, which means that they are exercisable at a predetermined","page_number":88,"box":{"x":116,"y":149,"width":730,"height":12}},{"id":"cc80d52a-e4ee-4ed6-99b2-af4d903d8402","block_type":"box","text":"specified price (the “strike price”) only on the FLEX Option’s expiration date.","page_number":88,"box":{"x":116,"y":165,"width":569,"height":12}},{"id":"95dc86d7-5633-42ab-9080-b1bd54cb203e","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the","page_number":88,"box":{"x":116,"y":198,"width":752,"height":12}},{"id":"122e2a06-4a94-4163-8520-0d7a93f55ff9","block_type":"box","text":"“buyer for every seller and the seller for every buyer”, reducing counterparty risk for clearing members","page_number":88,"box":{"x":116,"y":213,"width":762,"height":12}},{"id":"9c6178c7-7b13-4779-bc1e-5d25556d330a","block_type":"box","text":"and options traders. Although guaranteed for settlement by the OCC, FLEX Options are still subject to","page_number":88,"box":{"x":116,"y":229,"width":762,"height":12}},{"id":"fca32b61-4d6b-481d-ab20-4e586be62ba0","block_type":"box","text":"counterparty risk with the OCC and subject to the risk that the OCC may fail to perform the settlement","page_number":88,"box":{"x":116,"y":244,"width":760,"height":12}},{"id":"537658fc-664a-4a8d-a948-dc2225b2784d","block_type":"box","text":"of the FLEX Options due to bankruptcy or other adverse reasons. A Fund bears the risk that the OCC","page_number":88,"box":{"x":116,"y":260,"width":759,"height":12}},{"id":"4116b154-cf87-4faa-b99a-a34b7e0a1218","block_type":"box","text":"will be unable or unwilling to perform its obligations under the FLEX Options contracts.","page_number":88,"box":{"x":116,"y":275,"width":646,"height":12}},{"id":"31cd87ac-a54e-44f5-9c85-1e41ea94f055","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the","page_number":88,"box":{"x":116,"y":308,"width":744,"height":13}},{"id":"3de07ac8-369b-4f5b-9bb6-9a764a59b71b","block_type":"box","text":"FLEX Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and","page_number":88,"box":{"x":117,"y":324,"width":760,"height":12}},{"id":"4f156aab-8ca5-461c-96fd-e0d11a463337","block_type":"box","text":"rules: certain stock dividends or distributions, stock splits, reverse stock splits, rights offerings,","page_number":88,"box":{"x":117,"y":339,"width":702,"height":13}},{"id":"a30fa552-f4d3-4279-a690-c1c6dcaba65c","block_type":"box","text":"distributions, reorganizations, recapitalizations, or reclassifications with respect to an underlying","page_number":88,"box":{"x":116,"y":355,"width":715,"height":12}},{"id":"a17f13c2-bbb9-4fab-8636-0d75a152a3fc","block_type":"box","text":"security, or a merger, consolidation, dissolution or liquidation of the issuer of the underlying security.","page_number":88,"box":{"x":116,"y":370,"width":748,"height":13}},{"id":"2db99e69-47a4-44ee-8afe-0fbece423adc","block_type":"box","text":"According to the OCC’s by-laws, the nature and extent of any such adjustment is to be determined by","page_number":88,"box":{"x":116,"y":386,"width":759,"height":12}},{"id":"eaa11a66-67d4-46f2-b640-65f783adf11b","block_type":"box","text":"the OCC’s Securities Committee, in light of the circumstances known to it at the time such","page_number":88,"box":{"x":116,"y":401,"width":673,"height":13}},{"id":"90cee2d9-a9aa-48cc-abda-4368d53a89bd","block_type":"box","text":"determination is made, based on its judgment as to what is appropriate for the protection of investors","page_number":88,"box":{"x":116,"y":417,"width":754,"height":12}},{"id":"ed20d8ed-c740-4b3d-b4c2-c64ea302fde2","block_type":"box","text":"and the public interest, taking into account such factors as fairness to holders and writers (or","page_number":88,"box":{"x":116,"y":432,"width":691,"height":13}},{"id":"271e044f-89be-496f-b834-1f961a801205","block_type":"box","text":"purchasers and sellers) of the affected options, the maintenance of a fair and orderly market in the","page_number":88,"box":{"x":117,"y":448,"width":734,"height":12}},{"id":"6a57112a-1a48-4c09-b562-6a46f5762af9","block_type":"box","text":"affected options, consistency of interpretation and practice, efficiency of exercise settlement","page_number":88,"box":{"x":116,"y":463,"width":687,"height":13}},{"id":"a104e8c6-dddb-4fc0-8521-40ccde80ff9a","block_type":"box","text":"procedures, and the coordination with other clearing agencies of the clearance and settlement of","page_number":88,"box":{"x":117,"y":479,"width":721,"height":12}},{"id":"eb0f2290-3042-44b8-ba6b-f5e19193a0ca","block_type":"box","text":"transactions in the underlying interest.","page_number":88,"box":{"x":116,"y":495,"width":288,"height":12}},{"id":"383b6d49-857d-4cf5-a188-3fb7e32d7788","block_type":"box","text":"Certain Considerations Regarding Options","page_number":88,"box":{"x":151,"y":519,"width":314,"height":12}},{"id":"4f75fea6-d0e1-46e9-856b-08c64de820e0","block_type":"box","text":". The FLEX Options in which each Fund may invest will","page_number":88,"box":{"x":467,"y":519,"width":414,"height":12}},{"id":"fe7f14c5-25d3-400c-a4fd-30e0ea6c4971","block_type":"box","text":"be options on an exchange-traded fund (“ETF”) or the S&P 500 Index (together with such ETF, a","page_number":88,"box":{"x":150,"y":534,"width":723,"height":12}},{"id":"b57fc2f2-ad76-4d75-ade3-43f3af53cec4","block_type":"box","text":"“Reference Asset”). As such, the value of a Fund’s FLEX Options will fluctuate with changes in the","page_number":88,"box":{"x":150,"y":550,"width":735,"height":12}},{"id":"e97135ed-f954-4234-ad90-53c58745c6cb","block_type":"box","text":"value of the securities held by the ETF, and thus the ETF’s share price. In addition to the value of","page_number":88,"box":{"x":150,"y":565,"width":726,"height":12}},{"id":"53fdbba3-eeaa-4031-b422-e0702623f8cd","block_type":"box","text":"the ETF, the value of an option, in general, will reflect, among other things, the time remaining until","page_number":88,"box":{"x":150,"y":581,"width":738,"height":12}},{"id":"74a132f0-e7c4-454c-a1a9-91697bcf092a","block_type":"box","text":"expiration (the end of the Outcome Period), the relationship of the exercise price to the market","page_number":88,"box":{"x":150,"y":596,"width":704,"height":12}},{"id":"69af2d5a-1bd9-4bd0-a3ed-02bf8070a2ee","block_type":"box","text":"price of the Reference Asset, and general market conditions. Options that expire unexercised","page_number":88,"box":{"x":150,"y":612,"width":698,"height":12}},{"id":"3a823a75-d377-4942-9c58-0749d7694575","block_type":"box","text":"have no value.","page_number":88,"box":{"x":150,"y":628,"width":113,"height":9}},{"id":"c77bbe3a-0a2e-47be-8a63-33c15486ae41","block_type":"box","text":"The puts and calls on the Reference Asset entitle the purchaser of the option the right to purchase","page_number":88,"box":{"x":150,"y":652,"width":734,"height":12}},{"id":"01b3e39e-b014-4945-9555-0d7d277de927","block_type":"box","text":"(for a call option) or sell (for a put option) the Reference Asset at a predetermined specified price","page_number":88,"box":{"x":150,"y":667,"width":718,"height":12}},{"id":"0bd7c72d-6fad-47bd-954b-d9548dfd30eb","block_type":"box","text":"(the “strike price”). When a Fund writes a call on the Reference Asset, it receives a premium and","page_number":88,"box":{"x":150,"y":683,"width":716,"height":12}},{"id":"848f2b6d-7966-4f0e-87d9-018c7dd114eb","block_type":"box","text":"agrees that the purchaser of the call, upon exercise of the call, will receive from the Fund the","page_number":88,"box":{"x":150,"y":698,"width":688,"height":12}},{"id":"17c9fca8-ff09-4bdd-a1da-761ca6df6f4b","block_type":"box","text":"delivery of a specified number of shares of the ETF in exchange for the strike price. When a Fund","page_number":88,"box":{"x":150,"y":714,"width":724,"height":12}},{"id":"bb786167-c70a-49ad-815f-70625772aa34","block_type":"box","text":"buys a call on the Reference Asset, it pays a premium and has the same rights to such call as","page_number":88,"box":{"x":150,"y":729,"width":697,"height":12}},{"id":"a4abcb1b-fbc4-4a26-b213-4f8c0ef86212","block_type":"box","text":"indicated above. When a Fund buys a put on the Reference Asset, it pays a premium and has the","page_number":88,"box":{"x":150,"y":745,"width":725,"height":12}},{"id":"c4aa53b2-2bdc-4703-8489-ab5e032bcf40","block_type":"box","text":"right to require the seller of the put, upon the Fund’s exercise of the put, to deliver the specified","page_number":88,"box":{"x":150,"y":760,"width":704,"height":12}},{"id":"94dd4d48-a069-4140-ac83-094557f586c9","block_type":"box","text":"number of shares of the ETF in exchange for the strike price. When a Fund writes a put on the","page_number":88,"box":{"x":150,"y":776,"width":700,"height":12}},{"id":"a8e4c8ab-1f81-4eed-846d-f967b83c0585","block_type":"box","text":"Reference Asset, it receives a premium and the purchaser of the put has the right to require the","page_number":88,"box":{"x":151,"y":791,"width":708,"height":12}},{"id":"6a867d5a-7202-46c8-95c1-18ef86d3c1d1","block_type":"box","text":"Fund to deliver the specified number of shares of the ETF in exchange for the strike price.","page_number":88,"box":{"x":151,"y":807,"width":665,"height":12}},{"id":"1e13d681-72ec-447d-9442-d842fbb089b3","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may","page_number":88,"box":{"x":149,"y":831,"width":705,"height":12}},{"id":"85ea3d2d-ed51-47a6-a5e7-3660035f53fb","block_type":"box","text":"also utilize FLEX Options that are cash-settled. Cash-settled options give the holder the right to","page_number":88,"box":{"x":150,"y":847,"width":711,"height":12}},{"id":"72d5d136-b516-452e-a6f7-d73e7647ecd3","block_type":"box","text":"receive an amount (or owe an amount) of cash upon the exercise of the option. Gain or loss","page_number":88,"box":{"x":150,"y":862,"width":686,"height":12}},{"id":"3c6dbcbf-5f02-4f5c-a73c-dd53119de13d","block_type":"box","text":"depends on changes in the value of the ETF’s share price relative to the strike price for a given","page_number":88,"box":{"x":150,"y":878,"width":710,"height":12}},{"id":"2b8d9ab9-0bab-4c37-9552-4b5f518a4eb6","block_type":"box","text":"II-29","page_number":88,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"4e28e5dd-54d9-4f55-b452-49916fb90bf2","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":88,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a26b18c5-10f4-4c43-8f69-e59c35c209c1","block_type":"box","text":"option contract. The amount of cash is equal to the difference between the closing price of the","page_number":89,"box":{"x":150,"y":87,"width":702,"height":12}},{"id":"9adc95b2-6b63-4fa1-b6a4-e473ea597314","block_type":"box","text":"ETF’s share price and the exercise price of the option contract times a specified multiple","page_number":89,"box":{"x":151,"y":102,"width":659,"height":12}},{"id":"8c507d14-45d6-4bf1-af75-5a82489e3bf1","block_type":"box","text":"(“multiplier”), which determines the total value for each point of such difference.","page_number":89,"box":{"x":150,"y":118,"width":593,"height":12}},{"id":"ff96468d-48ca-40d1-8d33-aa9ce01a1e1b","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":89,"box":{"x":150,"y":141,"width":306,"height":12}},{"id":"259d1930-36c7-44f0-b454-9d751d032ee0","block_type":"box","text":". If a Fund has purchased an option and exercises it","page_number":89,"box":{"x":458,"y":141,"width":382,"height":12}},{"id":"7d68ed4d-d28a-44ec-8b16-627c82e7eaaa","block_type":"box","text":"before the closing value for that day is available, it runs the risk that the level of the Reference Asset","page_number":89,"box":{"x":150,"y":157,"width":735,"height":12}},{"id":"f254548f-d472-44cf-94cb-4a020b6077af","block_type":"box","text":"may subsequently change. If such a change causes the exercised option to fall out of the money,","page_number":89,"box":{"x":150,"y":172,"width":714,"height":12}},{"id":"d16b7638-5f12-45cd-b07a-d0dfeee8fe13","block_type":"box","text":"the applicable Fund will be required to pay the difference between the closing Reference Asset","page_number":89,"box":{"x":150,"y":188,"width":698,"height":12}},{"id":"29c85fad-94f2-4280-ad60-e612abbdf050","block_type":"box","text":"value and the exercise price of the option (times the applicable multiplier) to the assigned writer.","page_number":89,"box":{"x":150,"y":203,"width":706,"height":12}},{"id":"83e37905-0821-4c65-8e25-bfe72c9388ba","block_type":"box","text":"Foreign Exchange Transactions.","page_number":89,"box":{"x":116,"y":242,"width":247,"height":12}},{"id":"d724c073-7a9c-430c-8ed7-e5b06ec53e24","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions","page_number":89,"box":{"x":116,"y":273,"width":731,"height":12}},{"id":"ff2293f1-4f6b-4118-b714-1b203f5b3b0c","block_type":"box","text":"(“FX forwards”) and currency swaps, purchase and sell currency options, currency futures and related","page_number":89,"box":{"x":117,"y":289,"width":760,"height":12}},{"id":"f661ea31-e45c-4318-afa7-feb4a41fa296","block_type":"box","text":"options thereon (collectively, “Currency Instruments”) for purposes of hedging against the decline in the","page_number":89,"box":{"x":116,"y":304,"width":772,"height":12}},{"id":"83a1875c-e355-4284-b5f1-2d6452503769","block_type":"box","text":"value of currencies in which its portfolio holdings are denominated against the U.S. dollar or, with","page_number":89,"box":{"x":116,"y":320,"width":725,"height":12}},{"id":"d444c6f8-67da-4830-83ab-a06082bdad80","block_type":"box","text":"respect to certain Funds, to seek to enhance returns.","page_number":89,"box":{"x":117,"y":335,"width":397,"height":12}},{"id":"70f885e2-d422-479d-8b44-70d25df665e4","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities","page_number":89,"box":{"x":116,"y":366,"width":734,"height":12}},{"id":"f5854ef8-dfad-4d5e-af7d-8ffaba1f1997","block_type":"box","text":"owned by a Fund, sold by a Fund but not","page_number":89,"box":{"x":116,"y":382,"width":309,"height":12}},{"id":"29c0ee13-cb08-493c-8eea-76a6e758ab7a","block_type":"box","text":"yet delivered, or committed or anticipated to be purchased by","page_number":89,"box":{"x":426,"y":382,"width":460,"height":12}},{"id":"28b19ab8-c378-439d-a6b1-d560bfbd0805","block_type":"box","text":"a Fund. As an illustration, a Fund may use such techniques to hedge the stated value in U.S. dollars of","page_number":89,"box":{"x":116,"y":397,"width":768,"height":12}},{"id":"7f210359-1010-4631-ac89-2f7461cbad97","block_type":"box","text":"an investment in a yen-denominated security. For example, the Fund may purchase a foreign currency","page_number":89,"box":{"x":116,"y":413,"width":767,"height":12}},{"id":"1ae32715-c76f-4f66-95ea-4969499a36e7","block_type":"box","text":"put option enabling it to sell a specified amount of yen","page_number":89,"box":{"x":117,"y":428,"width":404,"height":12}},{"id":"8ae4bc99-d5ce-4043-b145-778f524d26aa","block_type":"box","text":"for dollars at a specified price by a future date.","page_number":89,"box":{"x":521,"y":428,"width":350,"height":12}},{"id":"cf1c1f90-0691-4719-bd82-e2028d40be87","block_type":"box","text":"To the extent the hedge is successful, a loss in the value of the yen relative to the dollar will tend to be","page_number":89,"box":{"x":116,"y":444,"width":764,"height":12}},{"id":"8f16a305-59df-45a9-a6bd-5a3e15ca6a7a","block_type":"box","text":"offset by an increase in the value of the put option. To offset, in whole or in part, the cost of acquiring","page_number":89,"box":{"x":116,"y":459,"width":753,"height":12}},{"id":"ad518690-38f2-4450-b556-0f32327164ea","block_type":"box","text":"such a put option, the Fund may also sell a call option which, if exercised, requires it to sell a specified","page_number":89,"box":{"x":116,"y":475,"width":764,"height":12}},{"id":"20c6061a-f895-422f-a651-7b4946b0a024","block_type":"box","text":"amount of yen for dollars at a specified price by a future date (a technique called a “straddle”). By","page_number":89,"box":{"x":116,"y":490,"width":727,"height":12}},{"id":"3cd85b0f-9750-4c91-8b99-329630de9fcf","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the opportunity to profit without limit from","page_number":89,"box":{"x":116,"y":506,"width":767,"height":12}},{"id":"004ce67a-eb3a-4fda-9195-4637454c0883","block_type":"box","text":"increases in the relative value of the yen to the dollar. “Straddles” of the type that may be used by a","page_number":89,"box":{"x":117,"y":521,"width":742,"height":12}},{"id":"609e4978-7c20-45ac-9877-9814a2c2cfb4","block_type":"box","text":"Fund are considered hedging transactions. Certain Funds have a fundamental investment restriction","page_number":89,"box":{"x":117,"y":537,"width":749,"height":12}},{"id":"38dd8c7d-54f5-4993-8912-bcbf87e5f30b","block_type":"box","text":"that restricts currency option strategies.","page_number":89,"box":{"x":116,"y":552,"width":298,"height":12}},{"id":"91198954-ad8d-47f1-a1a3-bc62f40a8f58","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation","page_number":89,"box":{"x":117,"y":583,"width":737,"height":12}},{"id":"31a1ed1f-8beb-4d77-a8e4-4a9ef0c8a2cb","block_type":"box","text":"risk. A Fund’s use of Currency Instruments to effect hedging strategies is intended to reduce the","page_number":89,"box":{"x":117,"y":599,"width":718,"height":12}},{"id":"b6d23597-4687-4e7d-9ff4-4a867e04b9a5","block_type":"box","text":"volatility of the NAV of the Fund’s shares; however, the use of such hedging strategies will not prevent","page_number":89,"box":{"x":116,"y":614,"width":763,"height":12}},{"id":"de748666-5783-46b6-b06d-cade2e4d912e","block_type":"box","text":"the NAV of the Fund’s shares from fluctuating. Moreover, although Currency Instruments will be used","page_number":89,"box":{"x":116,"y":630,"width":757,"height":12}},{"id":"ddd71965-33aa-4560-a48d-da77508a24eb","block_type":"box","text":"with the intention of hedging against adverse currency movements, transactions in Currency","page_number":89,"box":{"x":116,"y":645,"width":689,"height":12}},{"id":"27c57f2f-7b43-4773-a72d-c3230d4f5868","block_type":"box","text":"Instruments involve the risk that anticipated currency movements will not be accurately predicted and","page_number":89,"box":{"x":117,"y":661,"width":749,"height":12}},{"id":"0e76b816-374d-44d2-8258-4d4957c58e03","block_type":"box","text":"that the Fund’s hedging strategies will be ineffective. To the extent that a Fund hedges against","page_number":89,"box":{"x":116,"y":676,"width":701,"height":12}},{"id":"6ebfcee0-6e46-415f-a134-f21cfdadb931","block_type":"box","text":"anticipated currency movements that do not occur, the Fund may realize losses and decrease its total","page_number":89,"box":{"x":116,"y":692,"width":755,"height":12}},{"id":"5b4f0816-38fd-4426-a5dd-f77c0198c874","block_type":"box","text":"return. Furthermore, a Fund will only engage in hedging activities from time to time and may not be","page_number":89,"box":{"x":117,"y":707,"width":733,"height":12}},{"id":"a090f247-cfa3-4369-a8ea-be02ef1f5b1c","block_type":"box","text":"engaging in hedging activities when movements in currency exchange rates actually occur.","page_number":89,"box":{"x":116,"y":723,"width":674,"height":12}},{"id":"50eb5209-5191-4abb-ad75-eff8dbb1198a","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign","page_number":89,"box":{"x":117,"y":754,"width":746,"height":12}},{"id":"a6dfbf70-cdf0-4beb-972b-79e581b59266","block_type":"box","text":"or domestic bank, or foreign or domestic securities dealer, to make or take future delivery of a specified","page_number":89,"box":{"x":116,"y":769,"width":766,"height":12}},{"id":"eec78829-2fee-4c32-b8aa-602fbf2228cb","block_type":"box","text":"amount of a particular currency. There are no limitations on daily price moves in such forward","page_number":89,"box":{"x":116,"y":785,"width":693,"height":12}},{"id":"32a8f976-0ff6-4809-a0cb-f2a656f6bd14","block_type":"box","text":"contracts, and banks and dealers are not required to continue to make markets in such contracts.","page_number":89,"box":{"x":116,"y":800,"width":722,"height":12}},{"id":"cfc881b2-1603-4a28-83a0-99d0f19f6bce","block_type":"box","text":"There have been periods during which certain banks or dealers have refused to quote prices for such","page_number":89,"box":{"x":116,"y":816,"width":751,"height":12}},{"id":"c511b1ed-04a8-4009-96ab-72c353b75aff","block_type":"box","text":"forward contracts or have quoted prices with an unusually wide spread between the price at which the","page_number":89,"box":{"x":116,"y":831,"width":761,"height":12}},{"id":"aeb7475a-a67a-454d-9864-0be060f0e1be","block_type":"box","text":"bank or dealer is prepared to buy and that at which it is prepared to sell. Governmental imposition of","page_number":89,"box":{"x":117,"y":847,"width":747,"height":12}},{"id":"f1394cd7-210e-4bf5-b3c3-88cf470fc0aa","block_type":"box","text":"currency controls might limit any such forward contract trading. With respect to its trading of forward","page_number":89,"box":{"x":116,"y":862,"width":746,"height":12}},{"id":"3aa33df6-30c0-4b06-a9af-8b426653050e","block_type":"box","text":"contracts, if any, a Fund will be subject to counterparty risk. Any such failure to perform by a","page_number":89,"box":{"x":116,"y":878,"width":689,"height":12}},{"id":"6d3225f2-478c-4f10-b27a-acfe8a4615cd","block_type":"box","text":"II-30","page_number":89,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"065ea2c4-6162-419e-86bb-7774ca593a4a","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":89,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0c07d38d-ed62-40e2-9b68-440a99c8c7cd","block_type":"box","text":"counterparty would deprive the Fund of any profit potential or force the Fund to cover its commitments","page_number":90,"box":{"x":116,"y":87,"width":762,"height":12}},{"id":"39016d0d-22cb-493c-bd1a-2fcd7fe2a16c","block_type":"box","text":"for resale, if any, at the then market price and could result in a loss to the Fund.","page_number":90,"box":{"x":116,"y":102,"width":595,"height":13}},{"id":"cdf043ab-9981-49b8-b05c-8fcaf29754df","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if","page_number":90,"box":{"x":117,"y":134,"width":709,"height":12}},{"id":"f35daef6-4fe3-46cb-9fd9-06305c9beaac","block_type":"box","text":"correctly anticipated, in the event that (i) the currency exchange rate movement is so generally","page_number":90,"box":{"x":116,"y":149,"width":707,"height":12}},{"id":"f363bee3-2d72-447d-bd84-411fa089cc75","block_type":"box","text":"anticipated that the Fund is not able to enter into a hedging transaction at an effective price, or (ii) the","page_number":90,"box":{"x":116,"y":165,"width":757,"height":12}},{"id":"ccb1349c-08e9-4b2d-b8e2-46a6f499b7fa","block_type":"box","text":"currency exchange rate movement relates to a market with respect to which Currency Instruments are","page_number":90,"box":{"x":116,"y":180,"width":764,"height":12}},{"id":"01c4db3f-cd93-4242-bd2b-f2f061bd0798","block_type":"box","text":"not available and it is not possible to engage in effective foreign currency hedging. The cost to a Fund","page_number":90,"box":{"x":117,"y":196,"width":759,"height":12}},{"id":"5b830556-55d2-434f-b533-5995f55c7cfd","block_type":"box","text":"of engaging in foreign currency transactions varies with such factors as the currencies involved, the","page_number":90,"box":{"x":116,"y":211,"width":743,"height":12}},{"id":"73318b1f-ba97-4915-83ed-d8d1d57b7231","block_type":"box","text":"length of the contract period and the market conditions then prevailing. Since transactions in foreign","page_number":90,"box":{"x":117,"y":227,"width":744,"height":12}},{"id":"75d1bbca-6e1f-4687-aacb-52bca5c73c58","block_type":"box","text":"currency exchange usually are conducted on a principal basis, no fees or commissions are involved.","page_number":90,"box":{"x":116,"y":242,"width":750,"height":12}},{"id":"4c6634ba-ff58-4077-815f-cc7d4384cf89","block_type":"box","text":"A Fund will not hedge a currency in excess of the aggregate market value of the securities that it owns","page_number":90,"box":{"x":116,"y":273,"width":765,"height":12}},{"id":"1ecdf36a-a81f-4fc5-8df3-f8ef30baf9be","block_type":"box","text":"(including receivables for unsettled securities sales), or has committed to purchase or anticipates","page_number":90,"box":{"x":117,"y":289,"width":724,"height":12}},{"id":"d12b4dce-33c9-41d3-ab7e-d8a1163a7500","block_type":"box","text":"purchasing, which are denominated in such currency.","page_number":90,"box":{"x":117,"y":304,"width":401,"height":12}},{"id":"95746f28-404e-4281-a407-0ffb2300bd27","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":90,"box":{"x":117,"y":335,"width":271,"height":12}},{"id":"27f8583c-2249-478d-bb61-63a5d4d5fdc8","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified","page_number":90,"box":{"x":390,"y":335,"width":470,"height":12}},{"id":"ae0f7ed7-00c6-4950-8144-930ee9d07a0c","block_type":"box","text":"amount of a specified currency or multinational currency unit at a specified price and specified future","page_number":90,"box":{"x":116,"y":351,"width":750,"height":12}},{"id":"9f7c002f-5c0d-4bc8-8eb7-cc9c03694d12","block_type":"box","text":"date. Spot foreign exchange transactions are similar but are settled in the current, or “spot”, market. A","page_number":90,"box":{"x":116,"y":366,"width":761,"height":12}},{"id":"22986370-a1f3-480e-b9eb-2de03341d12e","block_type":"box","text":"Fund will enter into foreign exchange transactions for purposes of hedging either a specific transaction","page_number":90,"box":{"x":117,"y":382,"width":764,"height":12}},{"id":"27ac1b88-eabd-4d13-abdd-9c51a995657c","block_type":"box","text":"or a portfolio position, or, with respect to certain Funds, to seek to enhance returns. FX forwards","page_number":90,"box":{"x":116,"y":397,"width":719,"height":12}},{"id":"3dc994b3-6a64-444f-b9c1-cde26af515d5","block_type":"box","text":"involve substantial currency risk, credit risk and liquidity risk. A Fund may enter into a foreign exchange","page_number":90,"box":{"x":117,"y":413,"width":770,"height":12}},{"id":"e28f15f6-5e1c-428d-97f5-b89c8bb2f124","block_type":"box","text":"transaction for purposes of hedging a specific transaction by, for example, purchasing a currency","page_number":90,"box":{"x":116,"y":428,"width":725,"height":12}},{"id":"e24ed261-0b16-4e0c-b1b4-8575021f2790","block_type":"box","text":"needed to settle a security transaction or selling a currency in which the Fund has received or","page_number":90,"box":{"x":117,"y":444,"width":699,"height":12}},{"id":"1212ab4c-ca07-42b3-894a-18e7c5f8c1f1","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction","page_number":90,"box":{"x":116,"y":459,"width":754,"height":12}},{"id":"bd587081-3f67-412f-88e2-8cda14f57948","block_type":"box","text":"for purposes of hedging a portfolio position by selling forward a currency in which a portfolio position of","page_number":90,"box":{"x":116,"y":475,"width":767,"height":12}},{"id":"0553b235-831e-4908-99e3-35dd4d7f3a4b","block_type":"box","text":"the Fund is denominated or by purchasing a currency in which the Fund anticipates acquiring a","page_number":90,"box":{"x":116,"y":490,"width":711,"height":12}},{"id":"b90afb23-e86a-46c9-8e5c-3e925ed73fb9","block_type":"box","text":"portfolio position in the near future. A Fund may also hedge a currency by entering into a transaction in","page_number":90,"box":{"x":117,"y":506,"width":767,"height":12}},{"id":"0aa48721-5094-4c81-a2f7-9c35bd03f576","block_type":"box","text":"a Currency Instrument denominated in a currency other than the currency being hedged (a “cross","page_number":90,"box":{"x":116,"y":521,"width":729,"height":12}},{"id":"b6fee09f-e976-4878-baa5-e1fdd88500e2","block_type":"box","text":"hedge”). A Fund will only enter into a cross-hedge if the Manager believes that (i) there is a","page_number":90,"box":{"x":117,"y":537,"width":680,"height":12}},{"id":"194394ff-ed2d-421d-b673-d3f89d611654","block_type":"box","text":"demonstrably high correlation between the currency in which the cross-hedge is denominated and the","page_number":90,"box":{"x":116,"y":552,"width":761,"height":12}},{"id":"d9226c10-555a-41cf-b291-d2a30bdd659e","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross","page_number":90,"box":{"x":116,"y":568,"width":722,"height":12}},{"id":"d430daa8-1693-4f71-a291-d9bbf0d290c2","block_type":"box","text":"hedge is denominated will be significantly more cost-effective or provide substantially greater liquidity","page_number":90,"box":{"x":117,"y":583,"width":755,"height":12}},{"id":"ad6286cb-0216-4c4e-816a-006e94f20154","block_type":"box","text":"than executing a similar hedging transaction by means of the currency being hedged.","page_number":90,"box":{"x":116,"y":599,"width":638,"height":12}},{"id":"34d83e38-587e-48ae-b592-080017f43616","block_type":"box","text":"A Fund may also engage in proxy hedging transactions to reduce the effect of currency fluctuations on","page_number":90,"box":{"x":116,"y":630,"width":765,"height":12}},{"id":"3814271a-46ed-4be8-ae91-f624bf6b8945","block_type":"box","text":"the value of existing or anticipated holdings of portfolio securities. Proxy hedging is often used when","page_number":90,"box":{"x":116,"y":645,"width":747,"height":12}},{"id":"193213c6-2b82-42d2-bb55-43196cd50500","block_type":"box","text":"the currency to which the Fund is exposed is difficult to hedge, or to hedge against the U.S. dollar.","page_number":90,"box":{"x":116,"y":661,"width":727,"height":12}},{"id":"25fc46cc-7097-4a4e-aea8-f586d30187eb","block_type":"box","text":"Proxy hedging entails entering into a forward contract to sell a currency whose changes in value are","page_number":90,"box":{"x":117,"y":676,"width":741,"height":12}},{"id":"7d1fbe8d-aef1-4b6b-9ef6-247bf817045a","block_type":"box","text":"generally considered to be linked to a currency or currencies in which some or all of the Fund’s","page_number":90,"box":{"x":116,"y":692,"width":704,"height":12}},{"id":"0179a339-63a4-4659-b3ea-4bc4ee69905a","block_type":"box","text":"securities are, or are expected to be, denominated, and to buy U.S. dollars. Proxy hedging involves","page_number":90,"box":{"x":116,"y":707,"width":736,"height":12}},{"id":"405e4b63-eef0-4bb2-90b4-0ee879e9d81a","block_type":"box","text":"some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":90,"box":{"x":116,"y":723,"width":737,"height":12}},{"id":"d04d1946-cb93-4a52-8c79-66c395e538a6","block_type":"box","text":"transactions can result in losses to the Fund if the currency being hedged fluctuates in value to a","page_number":90,"box":{"x":116,"y":738,"width":717,"height":12}},{"id":"fd242ff3-7aef-44ff-af9e-74a95e5e9d10","block_type":"box","text":"degree or in a direction that is not anticipated. In addition, there is the risk that the perceived linkage","page_number":90,"box":{"x":116,"y":754,"width":742,"height":12}},{"id":"7241c01f-e7c0-4a0b-853b-37f502be0514","block_type":"box","text":"between various currencies may not be present, including during the particular time that a Fund is","page_number":90,"box":{"x":117,"y":769,"width":724,"height":12}},{"id":"cca7f616-c565-4b8b-b425-70f21b2cacb0","block_type":"box","text":"engaging in proxy hedging.","page_number":90,"box":{"x":116,"y":785,"width":200,"height":12}},{"id":"34c0a407-9026-4152-a0c5-3148969119cc","block_type":"box","text":"A Fund may also cross-hedge currencies by entering into forward contracts to sell one or more","page_number":90,"box":{"x":116,"y":816,"width":703,"height":12}},{"id":"8f7aca0f-0307-4448-bd91-57a325ae1cde","block_type":"box","text":"currencies that are expected to decline in value relative to other currencies to which the Fund has or in","page_number":90,"box":{"x":116,"y":831,"width":766,"height":12}},{"id":"9b3713ef-8d39-44b3-9c39-85d966947681","block_type":"box","text":"which the Fund expects to have portfolio exposure. For example, a Fund may hold both Canadian","page_number":90,"box":{"x":116,"y":847,"width":731,"height":12}},{"id":"7cd0c40b-39cb-4249-9b5c-63923911a477","block_type":"box","text":"government bonds and Japanese government bonds, and the Manager or sub-adviser may believe","page_number":90,"box":{"x":116,"y":862,"width":741,"height":12}},{"id":"ce8d4036-0989-4b0b-989b-443f2e0c8062","block_type":"box","text":"that Canadian dollars will deteriorate against Japanese yen. The Fund would sell Canadian dollars to","page_number":90,"box":{"x":116,"y":878,"width":754,"height":12}},{"id":"31b3bd73-61fa-42a0-b808-178cdf0ab434","block_type":"box","text":"II-31","page_number":90,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"cad738b7-b828-4457-b6db-ed1a6b406108","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":90,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"621fb985-9cc2-4367-8c99-5fc38c6372ec","block_type":"box","text":"reduce its exposure to that currency and buy Japanese yen. This strategy would be a hedge against a","page_number":91,"box":{"x":117,"y":87,"width":761,"height":12}},{"id":"d53d4282-8cc3-4bd7-ac22-f79ddc1fdfd0","block_type":"box","text":"decline in the value of Canadian dollars, although it would expose the Fund to declines in the value of","page_number":91,"box":{"x":116,"y":102,"width":758,"height":13}},{"id":"6cafaf08-3eb4-44a4-ba5f-ac659a428dda","block_type":"box","text":"the Japanese yen relative to the U.S. dollar.","page_number":91,"box":{"x":116,"y":118,"width":331,"height":12}},{"id":"74171e88-cce0-4d43-ba17-bef172a21837","block_type":"box","text":"Some of the forward non-U.S. currency contracts entered into by the Funds are classified as","page_number":91,"box":{"x":116,"y":152,"width":690,"height":12}},{"id":"aa061939-2eac-4ae4-8aff-1aeb1dcddc77","block_type":"box","text":"non-deliverable forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be","page_number":91,"box":{"x":117,"y":168,"width":748,"height":12}},{"id":"133c7e5b-a7a7-4c24-8741-6c5488aba576","block_type":"box","text":"thinly traded or are denominated in non-convertible foreign currency, where the profit or loss at the","page_number":91,"box":{"x":116,"y":183,"width":736,"height":12}},{"id":"186bb052-3e51-4cf0-a7e9-3ffc0617047f","block_type":"box","text":"time at the settlement date is calculated by taking the difference between the agreed upon exchange","page_number":91,"box":{"x":116,"y":199,"width":752,"height":12}},{"id":"64b2789a-d989-49a5-b473-447169db87f1","block_type":"box","text":"rate and the spot rate at the time of settlement, for an agreed upon notional amount of funds. All NDFs","page_number":91,"box":{"x":117,"y":214,"width":765,"height":12}},{"id":"8c03d424-8909-4836-b149-d72ab9264291","block_type":"box","text":"have a fixing date and a settlement date. The fixing date is the date at which the difference between","page_number":91,"box":{"x":117,"y":230,"width":746,"height":12}},{"id":"bba377fe-cef3-494c-b7a4-2a87553867d9","block_type":"box","text":"the prevailing market exchange rate and the agreed upon exchange rate is calculated. The settlement","page_number":91,"box":{"x":116,"y":245,"width":761,"height":12}},{"id":"32303726-bd49-4841-8db6-48feb95dbaf0","block_type":"box","text":"date is the date by which the payment of the difference is due to the party receiving payment. NDFs","page_number":91,"box":{"x":116,"y":261,"width":745,"height":12}},{"id":"43a971ac-99f0-4514-a5af-93bd5a4d6af8","block_type":"box","text":"are commonly quoted for time periods of one month up to two years, and are normally quoted and","page_number":91,"box":{"x":116,"y":276,"width":733,"height":12}},{"id":"597c1069-6b5a-4e66-86d6-242f5e92b111","block_type":"box","text":"settled in U.S. dollars. They are often used to gain exposure to and/or hedge exposure to foreign","page_number":91,"box":{"x":116,"y":292,"width":723,"height":12}},{"id":"4fce8782-d330-4b57-9048-ebd131ff15af","block_type":"box","text":"currencies that are not internationally traded.","page_number":91,"box":{"x":116,"y":307,"width":337,"height":12}},{"id":"1ab050e9-9a3c-4ded-977c-39fcfddaf270","block_type":"box","text":"Currency Futures.","page_number":91,"box":{"x":117,"y":341,"width":132,"height":12}},{"id":"ad8dd16d-c74c-4fc0-b9ae-c1c4660ab16d","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a","page_number":91,"box":{"x":250,"y":341,"width":626,"height":12}},{"id":"339095eb-6def-4b29-b639-260f89fe88bd","block_type":"box","text":"currency through use of currency futures or options on currency futures. Currency futures are similar to","page_number":91,"box":{"x":116,"y":357,"width":769,"height":12}},{"id":"f8ac0bc0-0792-4118-a0ee-175d4a33260e","block_type":"box","text":"forward foreign exchange transactions except that futures are standardized, exchange-traded contracts","page_number":91,"box":{"x":116,"y":372,"width":772,"height":12}},{"id":"8043c1d6-cddc-4ffb-a19c-c85b4620090b","block_type":"box","text":"while forward foreign exchange transactions are traded in the OTC market. Currency futures involve","page_number":91,"box":{"x":116,"y":388,"width":747,"height":12}},{"id":"d45cf559-a7c4-4dec-86bf-a1f8ef095cd9","block_type":"box","text":"substantial currency risk as well as the risks discussed above in “—Futures.”","page_number":91,"box":{"x":116,"y":403,"width":573,"height":12}},{"id":"290d03ea-cda6-431d-ae10-c6a2758e8019","block_type":"box","text":"Currency Options.","page_number":91,"box":{"x":117,"y":437,"width":133,"height":12}},{"id":"cfe72b46-1ebd-4851-bcbd-895bcd751d97","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a","page_number":91,"box":{"x":251,"y":437,"width":626,"height":12}},{"id":"5afe95a1-7aef-422b-b63b-a1f9c8f7244c","block_type":"box","text":"currency through the use of currency options. Certain Funds have fundamental investment restrictions","page_number":91,"box":{"x":116,"y":453,"width":763,"height":12}},{"id":"d10f2c46-8798-4873-89a5-aef07678626d","block_type":"box","text":"that permit the purchase of currency options, but prohibit the writing of currency options. Currency","page_number":91,"box":{"x":116,"y":468,"width":732,"height":12}},{"id":"5847f1e0-58b8-4015-9537-1e602dc15507","block_type":"box","text":"options are similar to options on securities. For example, in consideration for an option premium the","page_number":91,"box":{"x":116,"y":484,"width":745,"height":12}},{"id":"2d8da3ec-83ec-4dd3-bc86-42db26d6f925","block_type":"box","text":"writer of a currency option is obligated to sell (in the case of a call option) or purchase (in the case of a","page_number":91,"box":{"x":116,"y":499,"width":765,"height":13}},{"id":"e8d0d5ec-82c0-4142-b95e-cc15c65ba47b","block_type":"box","text":"put option) a specified amount of a specified currency on or before the expiration date for a specified","page_number":91,"box":{"x":117,"y":515,"width":750,"height":12}},{"id":"e8e471ed-4e5f-41ff-995c-8c04bea029da","block_type":"box","text":"amount of another currency. A Fund may engage in transactions in options on currencies either on","page_number":91,"box":{"x":116,"y":530,"width":737,"height":13}},{"id":"caaa64f4-7a9e-4431-ab2f-4f66d42e581b","block_type":"box","text":"exchanges or OTC markets. Such transactions in options may include exotic options on currencies,","page_number":91,"box":{"x":116,"y":546,"width":743,"height":12}},{"id":"3bda1048-697a-467b-9fdb-3370e75970f8","block_type":"box","text":"which are typically traded in OTC markets and have additional features that result in different payment","page_number":91,"box":{"x":116,"y":561,"width":763,"height":13}},{"id":"bded2b19-df2b-491a-a832-31b93428d40e","block_type":"box","text":"structures and/or expirations. Where a Fund is permitted to write currency options, it may write covered","page_number":91,"box":{"x":116,"y":577,"width":771,"height":12}},{"id":"6d70d50a-7ec0-43c1-bbc2-4ea2b0b6848a","block_type":"box","text":"call options on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options","page_number":91,"box":{"x":116,"y":592,"width":752,"height":13}},{"id":"f2ff05b5-08a9-4a39-8dc9-c6cf10cb7ea0","block_type":"box","text":"involve substantial currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":91,"box":{"x":117,"y":608,"width":651,"height":12}},{"id":"944cba5f-903c-43c9-96c5-b4298b2010eb","block_type":"box","text":"Currency Swaps.","page_number":91,"box":{"x":117,"y":642,"width":131,"height":12}},{"id":"11056a8b-bde7-423b-8a5c-fc4d452deac1","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency","page_number":91,"box":{"x":248,"y":642,"width":557,"height":12}},{"id":"7dce7fea-d0c1-44c3-9744-15fc47ac44f7","block_type":"box","text":"fluctuations or to hedge portfolio positions. Currency swaps are transactions in which one currency is","page_number":91,"box":{"x":116,"y":658,"width":754,"height":12}},{"id":"a7f8d723-a6d0-46f9-992a-60ba50ba6149","block_type":"box","text":"simultaneously bought for a second currency on a spot basis and sold for the second currency on a","page_number":91,"box":{"x":116,"y":673,"width":737,"height":12}},{"id":"a4428def-5e76-4f41-bf7b-8d92b036e43e","block_type":"box","text":"forward basis. Currency swaps involve the exchange of the rights of a Fund and another party to make","page_number":91,"box":{"x":116,"y":689,"width":762,"height":12}},{"id":"8c697020-cf40-4bd8-bc45-9f30dcdec2f3","block_type":"box","text":"or receive payments in specified currencies, and typically require the delivery of the entire principal","page_number":91,"box":{"x":116,"y":704,"width":732,"height":12}},{"id":"ee6114ff-9d6c-41c9-97f8-6876d73d03aa","block_type":"box","text":"value of one designated currency in exchange for the other designated currency. As a result, the entire","page_number":91,"box":{"x":116,"y":720,"width":763,"height":12}},{"id":"7bc74b4e-04a7-48a8-baa5-12298b8fa4d7","block_type":"box","text":"principal value of a currency swap is subject to the risk that the other party to the swap will default on","page_number":91,"box":{"x":117,"y":735,"width":747,"height":12}},{"id":"3f23b3e2-26b7-441f-816a-9e846ede0090","block_type":"box","text":"its contractual delivery obligations.","page_number":91,"box":{"x":117,"y":751,"width":254,"height":12}},{"id":"0a6f4b29-1f0b-4e63-848f-88b073a2e164","block_type":"box","text":"Distressed Securities.","page_number":91,"box":{"x":116,"y":785,"width":174,"height":9}},{"id":"4eabcd97-f2ab-4cce-a5bf-160053a48fe5","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary","page_number":91,"box":{"x":296,"y":785,"width":565,"height":12}},{"id":"3cf28bd0-a6a3-4ab4-a06e-3177eeae6653","block_type":"box","text":"market, that are the subject of bankruptcy proceedings or otherwise in default or in risk of being in","page_number":91,"box":{"x":117,"y":800,"width":724,"height":12}},{"id":"2772dd40-316e-41cc-bc71-30ee0413b122","block_type":"box","text":"default as to the repayment of principal and/or interest at the time of acquisition by the Fund or that are","page_number":91,"box":{"x":116,"y":816,"width":763,"height":12}},{"id":"382359b3-effc-445b-ac5e-0b57b0e5f354","block_type":"box","text":"rated in the lower rating categories by one or more nationally recognized statistical rating organizations","page_number":91,"box":{"x":117,"y":831,"width":768,"height":12}},{"id":"c6eba7b8-4714-4304-b825-4546e366c9e1","block_type":"box","text":"(for example, Ca or lower by Moody’s and CC or lower by S&P or Fitch) or, if unrated, are in the","page_number":91,"box":{"x":117,"y":847,"width":715,"height":12}},{"id":"fafefcf1-9124-4447-9daf-35e9b6b2cd29","block_type":"box","text":"judgment of the Manager of equivalent quality (“Distressed Securities”). Investment in Distressed","page_number":91,"box":{"x":115,"y":862,"width":725,"height":12}},{"id":"5d10cae3-95fc-4d5a-b814-1ecd358d193f","block_type":"box","text":"Securities is speculative and involves significant risks.","page_number":91,"box":{"x":116,"y":878,"width":405,"height":12}},{"id":"e7607528-0a3f-45e1-a468-912d7b85ead4","block_type":"box","text":"II-32","page_number":91,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"077992cc-9026-40be-9883-9814f9dba360","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":91,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"bbd4fb1c-4a33-4e72-a43d-1430dd511edd","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely","page_number":92,"box":{"x":116,"y":87,"width":745,"height":12}},{"id":"7541d378-d39b-4244-9656-86f2b05b90c9","block_type":"box","text":"that the issuer of the Distressed Securities will make an exchange offer or will be the subject of a plan","page_number":92,"box":{"x":116,"y":102,"width":760,"height":13}},{"id":"87111c49-1673-4b33-b445-4191af2f9c76","block_type":"box","text":"of reorganization pursuant to which the Fund will receive new securities in return for the Distressed","page_number":92,"box":{"x":116,"y":118,"width":739,"height":12}},{"id":"8d3f5af8-7a25-445f-aa3e-5cd54f7e89e2","block_type":"box","text":"Securities. However, there can be no assurance that such an exchange offer will be made or that such","page_number":92,"box":{"x":116,"y":134,"width":766,"height":12}},{"id":"39a05b05-86d2-4c55-a66e-b078c49d6d2a","block_type":"box","text":"a plan of reorganization will be adopted. In addition, a significant period of time may pass between the","page_number":92,"box":{"x":116,"y":149,"width":762,"height":12}},{"id":"f82bd86c-d568-45ff-8110-2e2a5bb2eca8","block_type":"box","text":"time at which a Fund makes its investment in Distressed Securities and the time that any such","page_number":92,"box":{"x":116,"y":165,"width":704,"height":12}},{"id":"367babb4-5956-41b6-9a8f-0ca5402df2cb","block_type":"box","text":"exchange offer or plan of reorganization is completed. During this period, it is unlikely that a Fund will","page_number":92,"box":{"x":116,"y":180,"width":756,"height":12}},{"id":"f8f1ad22-e779-4816-8606-211b5f4f3681","block_type":"box","text":"receive any interest payments on the Distressed Securities, the Fund will be subject to significant","page_number":92,"box":{"x":117,"y":196,"width":725,"height":12}},{"id":"b66a684b-e773-4f57-8282-05456ccea5bb","block_type":"box","text":"uncertainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":92,"box":{"x":117,"y":211,"width":764,"height":12}},{"id":"2aa33726-c755-4456-ac98-8e31a9c133f1","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment.","page_number":92,"box":{"x":117,"y":227,"width":741,"height":12}},{"id":"ac2682bb-1397-4f72-afe6-e5b1937878c6","block_type":"box","text":"Therefore, to the extent the Fund seeks capital appreciation through investment in distressed","page_number":92,"box":{"x":116,"y":242,"width":696,"height":12}},{"id":"555c3b44-80d7-4592-9344-01b7c0cd2ebe","block_type":"box","text":"securities, the Fund’s ability to achieve current income for its shareholders may be diminished. The","page_number":92,"box":{"x":116,"y":258,"width":740,"height":12}},{"id":"3c11422d-6412-4b15-90cc-6c2036efed30","block_type":"box","text":"Fund also will be subject to significant uncertainty as to when and in what manner and for what value","page_number":92,"box":{"x":117,"y":273,"width":753,"height":12}},{"id":"9edcf533-aed5-4b0b-be12-0640cdc0c37b","block_type":"box","text":"the obligations evidenced by the distressed securities will eventually be satisfied (","page_number":92,"box":{"x":116,"y":289,"width":605,"height":12}},{"id":"dadc50bf-8693-4000-9b4c-779cc9324a36","block_type":"box","text":"e.g.","page_number":92,"box":{"x":723,"y":291,"width":25,"height":10}},{"id":"3910cdb1-7ae4-46d3-bc67-54b0bde3821a","block_type":"box","text":", through a","page_number":92,"box":{"x":751,"y":289,"width":84,"height":12}},{"id":"30e37ff7-2319-40e9-a82c-2f9bc2fddaf0","block_type":"box","text":"liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the distressed","page_number":92,"box":{"x":117,"y":304,"width":756,"height":12}},{"id":"0636f712-fd22-413a-a1f7-47dea11f320c","block_type":"box","text":"securities or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is","page_number":92,"box":{"x":116,"y":320,"width":757,"height":12}},{"id":"577ce990-b994-4cfb-a0ae-75e872ee1a1e","block_type":"box","text":"made or plan of reorganization is adopted with respect to Distressed Securities held by a Fund, there","page_number":92,"box":{"x":117,"y":335,"width":754,"height":12}},{"id":"5c76488c-beb1-4da2-b08a-fa37192ccb50","block_type":"box","text":"can be no assurance that the securities or other assets received by a Fund in connection with such","page_number":92,"box":{"x":116,"y":351,"width":740,"height":12}},{"id":"2199c454-fb1e-4cf6-bbd8-a610873641f8","block_type":"box","text":"exchange offer or plan of reorganization will not have a lower value or income potential than may have","page_number":92,"box":{"x":116,"y":366,"width":765,"height":12}},{"id":"758634a5-c223-48b2-ba3a-452693f68b3b","block_type":"box","text":"been anticipated when the investment was made or no value. Moreover, any securities received by a","page_number":92,"box":{"x":117,"y":382,"width":753,"height":12}},{"id":"46b5872e-ba8e-4534-b182-8ce603e16dc0","block_type":"box","text":"Fund upon completion of an exchange offer or plan of reorganization may be restricted as to resale.","page_number":92,"box":{"x":117,"y":397,"width":745,"height":12}},{"id":"63ac4919-40dd-4818-95ba-9cc86b234526","block_type":"box","text":"Similarly, if a Fund participates in negotiations with respect to any exchange offer or plan of","page_number":92,"box":{"x":116,"y":413,"width":683,"height":12}},{"id":"03a3ffc7-9355-41ec-97c4-cfd7c92c7ff6","block_type":"box","text":"reorganization with respect to an issuer of Distressed Securities, the Fund may be restricted from","page_number":92,"box":{"x":117,"y":428,"width":726,"height":12}},{"id":"d9088123-c180-490e-84d7-b7cf4027400f","block_type":"box","text":"disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":92,"box":{"x":116,"y":444,"width":734,"height":12}},{"id":"2bf6c809-b2a2-48ed-9d97-f312d8403385","block_type":"box","text":"Fund may have a more active participation in the affairs of the issuer than that assumed generally by","page_number":92,"box":{"x":117,"y":459,"width":752,"height":12}},{"id":"5313837b-4bd5-4a21-aecc-98ea82a2f96c","block_type":"box","text":"an investor. The Fund, however, will not make investments for the purpose of exercising day-to-day","page_number":92,"box":{"x":116,"y":475,"width":744,"height":12}},{"id":"2c3f1310-b73f-495b-80e6-ae4d810dde5d","block_type":"box","text":"management of any issuer’s affairs.","page_number":92,"box":{"x":117,"y":490,"width":269,"height":12}},{"id":"ff71e124-092f-4e66-8746-a2fd93ca1d8f","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":92,"box":{"x":116,"y":521,"width":472,"height":12}},{"id":"d3724a3b-d190-4590-ba70-a166a5a49bc7","block_type":"box","text":". Although a Fund does not seek to","page_number":92,"box":{"x":590,"y":521,"width":264,"height":12}},{"id":"24d91aa5-d3cf-4744-94b7-58e3791ebaad","block_type":"box","text":"implement a specific sustainability objective, strategy or process unless disclosed in its Prospectus,","page_number":92,"box":{"x":117,"y":537,"width":741,"height":12}},{"id":"36a0ebd9-2009-407f-af9c-3481d1d2eefa","block_type":"box","text":"Fund management will consider ESG factors as part of the investment process for the Fund. Fund","page_number":92,"box":{"x":117,"y":552,"width":733,"height":12}},{"id":"a458c48a-3156-4ceb-a6ff-628b3add1253","block_type":"box","text":"management views ESG integration as the practice of incorporating financially material ESG data or","page_number":92,"box":{"x":117,"y":568,"width":747,"height":12}},{"id":"7ec50db7-033c-43e3-a609-34b24ced4ea5","block_type":"box","text":"information into investment processes with the objective of enhancing risk-adjusted returns. These","page_number":92,"box":{"x":117,"y":583,"width":734,"height":12}},{"id":"511b8f6b-7e5a-412a-b791-bc71736b7352","block_type":"box","text":"ESG considerations will vary depending on a Fund’s particular investment strategies and may include","page_number":92,"box":{"x":117,"y":599,"width":757,"height":12}},{"id":"bd46f8ca-93d4-4296-8df2-2b5cf2f5c4f7","block_type":"box","text":"consideration of third-party research as well as consideration of proprietary BlackRock research across","page_number":92,"box":{"x":116,"y":614,"width":770,"height":12}},{"id":"028307a0-3ffd-43dd-9931-03cd0d7b0c2b","block_type":"box","text":"the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":92,"box":{"x":116,"y":630,"width":725,"height":12}},{"id":"81e88f0e-6b1e-4c42-937f-0dc84cc3a809","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be","page_number":92,"box":{"x":117,"y":645,"width":738,"height":12}},{"id":"fc35935b-1d4a-4025-bc76-ce0cd23c0674","block_type":"box","text":"relevant with respect to all issuers that are eligible for investment.","page_number":92,"box":{"x":117,"y":661,"width":484,"height":12}},{"id":"602cbf93-d03f-486d-8caf-aa580e1487e5","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While","page_number":92,"box":{"x":117,"y":692,"width":764,"height":12}},{"id":"113639ac-2d2c-4670-8de0-0c85ae61ab42","block_type":"box","text":"Fund management views ESG considerations as having the potential to contribute to a Fund’s long","page_number":92,"box":{"x":117,"y":707,"width":740,"height":12}},{"id":"c93c8bb8-2851-4d54-90e6-6cd8eab25d9d","block_type":"box","text":"term performance, there is no guarantee that such results will be achieved.","page_number":92,"box":{"x":116,"y":723,"width":555,"height":12}},{"id":"4ff20dc8-9806-4051-89e7-ceb672649cac","block_type":"box","text":"Equity Securities.","page_number":92,"box":{"x":116,"y":754,"width":140,"height":12}},{"id":"6a037f8d-02c5-4188-b9c1-2f098e64b708","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for","page_number":92,"box":{"x":263,"y":754,"width":618,"height":12}},{"id":"b4cbd111-d96c-44ad-aef5-9556a6da6032","block_type":"box","text":"certain Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants","page_number":92,"box":{"x":116,"y":769,"width":755,"height":12}},{"id":"5d8db089-6ff8-44df-89c0-7bae00c7ca8e","block_type":"box","text":"and rights; equity interests in trusts; general and limited partnerships and limited liability companies;","page_number":92,"box":{"x":116,"y":785,"width":739,"height":12}},{"id":"de0f9999-8097-4916-809b-9e29e50a42d3","block_type":"box","text":"and depositary receipts. Stock markets are volatile. The price of equity securities will fluctuate and can","page_number":92,"box":{"x":116,"y":800,"width":759,"height":12}},{"id":"6eff325e-900c-44a8-a0d9-126720480a6d","block_type":"box","text":"decline and reduce the value of a portfolio investing in equities. The price of equity securities fluctuates","page_number":92,"box":{"x":116,"y":816,"width":763,"height":12}},{"id":"9d259f5e-2591-4427-b36c-68f0d0d5e82a","block_type":"box","text":"based on changes in a company’s financial condition and overall market and economic conditions. The","page_number":92,"box":{"x":117,"y":831,"width":767,"height":12}},{"id":"8f99704b-5083-47b0-a4ee-24ce15067798","block_type":"box","text":"value of equity securities purchased by the Fund could decline if the financial condition of the","page_number":92,"box":{"x":116,"y":847,"width":695,"height":12}},{"id":"bda8d465-e49c-41ef-9f3b-80ba130ee35b","block_type":"box","text":"companies the Fund invests in decline or if overall market and economic conditions deteriorate. They","page_number":92,"box":{"x":116,"y":862,"width":755,"height":12}},{"id":"a4e14f80-82d7-4314-9518-9f3fff0f07bf","block_type":"box","text":"may also decline due to factors that affect a particular industry or industries, such as labor shortages or","page_number":92,"box":{"x":117,"y":878,"width":770,"height":12}},{"id":"8566b48f-3aee-4beb-b5bb-3113b9383099","block_type":"box","text":"II-33","page_number":92,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"26564805-b553-4db0-a95a-2751b9e96918","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":92,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4fca7e12-ff89-44c4-863d-f88d1081f5eb","block_type":"box","text":"increase in production costs and competitive conditions within an industry. In addition, they may","page_number":93,"box":{"x":117,"y":87,"width":714,"height":12}},{"id":"fe8405fa-92c8-4c34-abfc-e58a2cb3ac82","block_type":"box","text":"decline due to general market conditions that are not specifically related to a company or industry,","page_number":93,"box":{"x":116,"y":102,"width":732,"height":13}},{"id":"cf2a1cb5-a9fe-4350-8767-4102b50b71e8","block_type":"box","text":"such as real or perceived adverse economic conditions, changes in the general outlook for corporate","page_number":93,"box":{"x":116,"y":118,"width":753,"height":12}},{"id":"1dc08167-c745-4256-92c9-1b57d52d672a","block_type":"box","text":"earnings, changes in interest or currency rates or generally adverse investor sentiment.","page_number":93,"box":{"x":116,"y":134,"width":654,"height":12}},{"id":"6c88c6d5-ff45-4726-aa3e-ce172eca0489","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public","page_number":93,"box":{"x":117,"y":165,"width":704,"height":12}},{"id":"1494b06c-a10a-44cc-8c3f-32cfa7b3f352","block_type":"box","text":"offerings (“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for","page_number":93,"box":{"x":116,"y":180,"width":764,"height":12}},{"id":"49503632-db49-4269-b64b-f1ddce74b59a","block_type":"box","text":"certain Funds. There is no assurance that any Fund will have continued access to profitable IPOs and","page_number":93,"box":{"x":116,"y":196,"width":761,"height":12}},{"id":"e0bab9b4-c74f-4286-a9da-b52af0a58d59","block_type":"box","text":"therefore investors should not rely on these past gains as an indication of future performance. The","page_number":93,"box":{"x":116,"y":211,"width":734,"height":12}},{"id":"d2976ce2-0661-426e-bd3d-2a9302bcadd8","block_type":"box","text":"investment performance of a Fund during periods when it is unable to invest significantly or at all in","page_number":93,"box":{"x":117,"y":227,"width":738,"height":12}},{"id":"3ad9dcc0-b10d-4db4-9f76-d1a76bd04586","block_type":"box","text":"IPOs may be lower than during periods when it is able to do so. In addition, as a Fund increases in","page_number":93,"box":{"x":117,"y":242,"width":736,"height":12}},{"id":"2e839eca-6c5a-4e83-bef3-220a0835eb5d","block_type":"box","text":"size, the impact of IPOs on its performance will generally decrease. Securities issued in IPOs are","page_number":93,"box":{"x":116,"y":258,"width":727,"height":12}},{"id":"e6badc41-a9c3-482c-886f-070e697cce95","block_type":"box","text":"subject to many of the same risks as investing in companies with smaller market capitalizations.","page_number":93,"box":{"x":116,"y":273,"width":717,"height":12}},{"id":"bf258169-9ca4-4540-88b4-e2a8702b3764","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be","page_number":93,"box":{"x":116,"y":289,"width":713,"height":12}},{"id":"f7449472-5d86-44a3-bffb-2f5edd06f445","block_type":"box","text":"available for very limited periods. In addition, the prices of securities sold in IPOs may be highly volatile","page_number":93,"box":{"x":116,"y":304,"width":770,"height":12}},{"id":"97ac9c62-362e-415a-ac07-b9bf7b996eb9","block_type":"box","text":"or may decline shortly after the initial public offering.","page_number":93,"box":{"x":116,"y":320,"width":392,"height":12}},{"id":"9f505112-cd82-40a7-a753-27a6cd7a12d5","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These","page_number":93,"box":{"x":116,"y":351,"width":685,"height":12}},{"id":"2b772282-e93b-4be9-be0c-7153575873f4","block_type":"box","text":"organizations will normally have more limited product lines, markets and financial resources and will be","page_number":93,"box":{"x":116,"y":366,"width":769,"height":12}},{"id":"f582c3fe-e60f-449c-a7af-7110c533d420","block_type":"box","text":"dependent upon a more limited management group than larger capitalized companies. In addition, it is","page_number":93,"box":{"x":116,"y":382,"width":764,"height":12}},{"id":"2777fcf0-d8d5-4023-80e8-6980412c4112","block_type":"box","text":"more difficult to get information on smaller companies, which tend to be less well known, have shorter","page_number":93,"box":{"x":117,"y":397,"width":758,"height":12}},{"id":"97176cfe-b678-434c-b340-0cdec9082369","block_type":"box","text":"operating histories, do not have significant ownership by large investors and are followed by relatively","page_number":93,"box":{"x":116,"y":413,"width":758,"height":12}},{"id":"ba15ea9c-835b-4446-9e9b-4254366d068a","block_type":"box","text":"few securities analysts. The securities of smaller capitalized companies are often traded in the OTC","page_number":93,"box":{"x":116,"y":428,"width":744,"height":12}},{"id":"e7eba203-bf35-4edb-8e23-675b1260dcd5","block_type":"box","text":"markets and may have fewer market makers and wider price spreads. This may result in greater price","page_number":93,"box":{"x":117,"y":444,"width":760,"height":12}},{"id":"defcc5bb-85d5-48ce-bcb4-7703b173f431","block_type":"box","text":"movements and less ability to sell a Fund’s investment than if the Fund held the securities of larger,","page_number":93,"box":{"x":117,"y":459,"width":743,"height":12}},{"id":"beb6f435-d430-49aa-8b19-46d90c06f26b","block_type":"box","text":"more established companies.","page_number":93,"box":{"x":117,"y":475,"width":222,"height":12}},{"id":"974bc7e2-792a-49b2-9a78-45627cd88ee3","block_type":"box","text":"For a discussion of the types of equity securities in which your Fund may invest and the risks","page_number":93,"box":{"x":117,"y":506,"width":693,"height":12}},{"id":"361fbe47-2181-4f27-b01f-b36bc83612a5","block_type":"box","text":"associated with investing in such equity securities, see your Fund’s Prospectus. Certain of the Funds","page_number":93,"box":{"x":116,"y":521,"width":754,"height":12}},{"id":"8531e6e2-6e8a-4147-a3fb-2d038149031e","block_type":"box","text":"may also invest in shares of private companies, which are subject to the risks of “Illiquid Investments”","page_number":93,"box":{"x":117,"y":537,"width":756,"height":12}},{"id":"616bbcc3-ac1b-45e6-bce5-505e3a831344","block_type":"box","text":"and “Restricted Securities” described below.","page_number":93,"box":{"x":116,"y":552,"width":334,"height":10}},{"id":"23235883-589b-4a8e-808a-d1a241417475","block_type":"box","text":"Real Estate-Related Securities.","page_number":93,"box":{"x":116,"y":583,"width":232,"height":10}},{"id":"842e48e8-7ae8-4bcf-91e8-28411e76d89e","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may","page_number":93,"box":{"x":349,"y":583,"width":535,"height":12}},{"id":"dd47c6b9-a588-4e36-8f97-aff3ae8ff654","block_type":"box","text":"invest in equity securities of issuers that are principally engaged in the real estate industry. Such","page_number":93,"box":{"x":117,"y":599,"width":719,"height":12}},{"id":"4b2fb5f6-b7fa-4bca-875e-4bae0e6ca26b","block_type":"box","text":"investments are subject to certain risks associated with the ownership of real estate and with the real","page_number":93,"box":{"x":117,"y":614,"width":753,"height":12}},{"id":"69b12a9a-56cc-4fcf-b868-02a792b7a4f7","block_type":"box","text":"estate industry in general. These risks include, among others: possible declines in the value of real","page_number":93,"box":{"x":116,"y":630,"width":738,"height":12}},{"id":"7b3f4604-c420-4713-8784-2427ba468b27","block_type":"box","text":"estate; risks related to general and local economic conditions; possible lack of availability of mortgage","page_number":93,"box":{"x":116,"y":645,"width":760,"height":12}},{"id":"67c931d8-856a-48bf-8375-9c740c67f931","block_type":"box","text":"funds or other limitations on access to capital; overbuilding; risks associated with leverage; market","page_number":93,"box":{"x":116,"y":661,"width":729,"height":12}},{"id":"2f6d2860-3004-4ab9-916a-cb4b632de1f3","block_type":"box","text":"illiquidity; extended vacancies of properties; increase in competition, property taxes, capital","page_number":93,"box":{"x":117,"y":676,"width":673,"height":12}},{"id":"60fd12aa-cdad-4592-8ae8-1485c6531b6f","block_type":"box","text":"expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":93,"box":{"x":116,"y":692,"width":760,"height":12}},{"id":"6cc95d57-1101-4044-ac89-11fbf8f5de9b","block_type":"box","text":"resulting from the clean-up of, and liability to third parties for damages resulting from, environmental","page_number":93,"box":{"x":117,"y":707,"width":740,"height":12}},{"id":"0172df2c-3716-409f-a87a-c2a9534f41d5","block_type":"box","text":"problems; tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured","page_number":93,"box":{"x":117,"y":723,"width":742,"height":12}},{"id":"5accfa9a-7a76-44a5-8675-ec16348bf0d7","block_type":"box","text":"damages from floods, earthquakes or other natural disasters; limitations on and variations in rents,","page_number":93,"box":{"x":116,"y":738,"width":730,"height":12}},{"id":"1085628b-279d-4ced-afc3-c323ff5088e3","block_type":"box","text":"including decreases in market rates for rents; investment in developments that are not completed or","page_number":93,"box":{"x":117,"y":754,"width":740,"height":12}},{"id":"c2ebaaf1-7375-41b7-954c-1c67c51521d5","block_type":"box","text":"that are subject to delays in completion; and changes in interest rates. To the extent that assets","page_number":93,"box":{"x":116,"y":769,"width":710,"height":12}},{"id":"a612fa8c-a8f6-4701-9ac8-8e1e38e1edc4","block_type":"box","text":"underlying a Fund’s investments are concentrated geographically, by property type or in certain other","page_number":93,"box":{"x":117,"y":785,"width":750,"height":12}},{"id":"0769e18f-d183-4449-8c98-d790101e607e","block_type":"box","text":"respects, the Fund may be subject to certain of the foregoing risks to a greater extent. Investments by","page_number":93,"box":{"x":117,"y":800,"width":755,"height":12}},{"id":"2873b5ed-4c21-422f-a298-bd88a19f975c","block_type":"box","text":"a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":93,"box":{"x":116,"y":816,"width":750,"height":12}},{"id":"16b11e4c-b5a7-4aa4-a824-f0f9d65b651e","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":93,"box":{"x":116,"y":831,"width":399,"height":12}},{"id":"69672b58-909e-4913-a381-09783ce18e95","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real property acquired as","page_number":93,"box":{"x":117,"y":862,"width":768,"height":12}},{"id":"8d152fa3-ecad-4989-8ef9-6553c9abeb11","block_type":"box","text":"a result of a default on securities the Fund owns, the receipt of such income may adversely affect the","page_number":93,"box":{"x":116,"y":878,"width":755,"height":12}},{"id":"01fb94a3-3c0d-468a-b0be-eeaa5582ce9c","block_type":"box","text":"II-34","page_number":93,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"6bd09332-4199-440d-b686-5ea1eae0a6b6","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":93,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"7ad95f04-357c-4a1d-8c18-91d584cff6b2","block_type":"box","text":"Fund’s ability to retain its tax status as a regulated investment company because of certain income","page_number":94,"box":{"x":117,"y":87,"width":737,"height":12}},{"id":"7aa30ca5-3d3d-438a-978a-d7971ddebc38","block_type":"box","text":"source requirements applicable to regulated investment companies under the Internal Revenue Code","page_number":94,"box":{"x":116,"y":102,"width":757,"height":13}},{"id":"d3dc939f-8048-4c8a-a4f6-314a911c48ee","block_type":"box","text":"of 1986, as amended (the “Code”).","page_number":94,"box":{"x":116,"y":118,"width":263,"height":12}},{"id":"d6f528d6-d288-4061-aeae-32f6e4e1faf4","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":94,"box":{"x":117,"y":151,"width":401,"height":12}},{"id":"a21a3284-e640-48b7-a40b-d3e4fb7c6aa6","block_type":"box","text":"Investment in smaller or emerging growth","page_number":94,"box":{"x":520,"y":151,"width":318,"height":12}},{"id":"a803297d-fb16-468c-8f46-2d31c97a5547","block_type":"box","text":"companies involves greater risk than is customarily associated with investments in more established","page_number":94,"box":{"x":116,"y":167,"width":749,"height":12}},{"id":"1255f45a-417d-4190-a5e8-e497bb950cc7","block_type":"box","text":"companies. The securities of smaller or emerging growth companies may be subject to more abrupt or","page_number":94,"box":{"x":116,"y":182,"width":765,"height":12}},{"id":"9e32d22c-407b-43a8-a9ad-74c312e8c50c","block_type":"box","text":"erratic market movements than larger, more established companies or the market average in general.","page_number":94,"box":{"x":116,"y":198,"width":761,"height":12}},{"id":"caed5a7c-bca9-4a39-91ce-4b9baa4a5f11","block_type":"box","text":"These companies may have limited product lines, markets or financial resources, or they may be","page_number":94,"box":{"x":116,"y":213,"width":723,"height":12}},{"id":"eb41a4f6-6d36-4c8b-9e0d-41d6ae609a80","block_type":"box","text":"dependent on a limited management group.","page_number":94,"box":{"x":116,"y":229,"width":330,"height":12}},{"id":"3f8d8665-2fe0-4fa9-9421-85888f29d53c","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be","page_number":94,"box":{"x":117,"y":262,"width":727,"height":12}},{"id":"0029625f-5375-4418-b2fd-53e99f878688","block_type":"box","text":"considered speculative. Full development of these companies and trends frequently takes time.","page_number":94,"box":{"x":116,"y":277,"width":713,"height":12}},{"id":"31f85549-d9ba-4d2f-9359-9422b1c90ff6","block_type":"box","text":"Small cap and emerging growth securities will often be traded only in the OTC market or on a regional","page_number":94,"box":{"x":116,"y":310,"width":762,"height":12}},{"id":"812b8547-f9aa-4e3d-a3b1-1ca5954cc9ab","block_type":"box","text":"securities exchange and may not be traded every day or in the volume typical of trading on a national","page_number":94,"box":{"x":116,"y":325,"width":757,"height":12}},{"id":"273031ff-17e4-4765-a4ee-7b48c9e36180","block_type":"box","text":"securities exchange. As a result, the disposition by a Fund of portfolio securities to meet redemptions","page_number":94,"box":{"x":116,"y":341,"width":756,"height":12}},{"id":"b02024a5-a48b-4a24-a745-d84c7246bd6d","block_type":"box","text":"or otherwise may require the Fund to make many small sales over a lengthy period of time, or to sell","page_number":94,"box":{"x":116,"y":356,"width":749,"height":12}},{"id":"c770dbb9-71ee-4885-ba86-d76a4a0d2687","block_type":"box","text":"these securities at a discount from market prices or during periods when, in Fund management’s","page_number":94,"box":{"x":116,"y":372,"width":722,"height":12}},{"id":"a1618bc6-b63b-4968-aea0-307cf26c6a30","block_type":"box","text":"judgment, such disposition is not desirable.","page_number":94,"box":{"x":115,"y":388,"width":326,"height":11}},{"id":"c3ff8ad6-61ef-4bd5-b88e-4dd3964e28b4","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee","page_number":94,"box":{"x":116,"y":420,"width":714,"height":12}},{"id":"e603754f-af8b-4298-93d4-e858bb36bde1","block_type":"box","text":"successful investment results. Careful initial selection is particularly important in this area as many new","page_number":94,"box":{"x":116,"y":436,"width":770,"height":12}},{"id":"3083a8e4-86ba-41da-9255-58f4ae2c88b2","block_type":"box","text":"enterprises have promise but lack certain of the fundamental factors necessary to prosper. Investing in","page_number":94,"box":{"x":116,"y":451,"width":767,"height":12}},{"id":"acb55c0e-a537-429f-9e5d-e0fdecb7f135","block_type":"box","text":"small cap and emerging growth companies requires specialized research and analysis.","page_number":94,"box":{"x":116,"y":467,"width":651,"height":12}},{"id":"b9e4f609-4eb5-42f8-b1cd-911e1d446d1f","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into","page_number":94,"box":{"x":117,"y":500,"width":753,"height":12}},{"id":"1be91243-cab3-4e99-a19a-92222662e3a4","block_type":"box","text":"significant business enterprises. A Fund may invest in securities of small issuers in the relatively early","page_number":94,"box":{"x":116,"y":515,"width":759,"height":12}},{"id":"383c62fa-ef29-4e85-aaa2-1a8776512955","block_type":"box","text":"stages of business development that have a new technology, a unique or proprietary product or","page_number":94,"box":{"x":116,"y":531,"width":714,"height":12}},{"id":"211d65c3-4a3e-4d40-b546-5ba5c62d5d49","block_type":"box","text":"service, or a favorable market position.","page_number":94,"box":{"x":116,"y":546,"width":294,"height":12}},{"id":"9e6d2cb2-ae7c-41ca-8bbc-64a239571e15","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":94,"box":{"x":117,"y":579,"width":757,"height":12}},{"id":"b855d1d3-0f79-4303-b543-21c01c5515d9","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying","page_number":94,"box":{"x":116,"y":595,"width":763,"height":12}},{"id":"64f1ec5b-daac-4759-bbe0-5b045ef4b7f2","block_type":"box","text":"stages of their business development. The market valuation of small cap issuers tends to fluctuate","page_number":94,"box":{"x":116,"y":610,"width":734,"height":12}},{"id":"3749e7ee-1720-4948-b120-9b8cb3093317","block_type":"box","text":"during economic or market cycles.","page_number":94,"box":{"x":116,"y":626,"width":260,"height":12}},{"id":"70294ec9-81cd-4bd9-b3b4-02952f31c07d","block_type":"box","text":"Tracking Stocks.","page_number":94,"box":{"x":118,"y":659,"width":120,"height":12}},{"id":"836326dd-4962-4c4e-8ef7-c31f00e5563c","block_type":"box","text":"A tracking stock is a separate class of common stock whose value is linked to a","page_number":94,"box":{"x":240,"y":659,"width":601,"height":12}},{"id":"da186a58-8e32-4573-8af9-0f1194dc69dd","block_type":"box","text":"specific business unit or operating division within a larger company and is designed to “track” the","page_number":94,"box":{"x":116,"y":674,"width":718,"height":12}},{"id":"49add2b4-c6b7-4e8b-aa18-a52ead821e6b","block_type":"box","text":"performance of such business unit or division. The tracking stock may pay dividends to shareholders","page_number":94,"box":{"x":117,"y":690,"width":746,"height":12}},{"id":"be0b7094-cde5-43b3-9998-6d418b05008f","block_type":"box","text":"independent of the parent company. The parent company, rather than the business unit or division,","page_number":94,"box":{"x":117,"y":705,"width":733,"height":12}},{"id":"2f270335-9d89-408c-815a-21c275439eca","block_type":"box","text":"generally is the issuer of tracking stock. However, holders of the tracking stock may not have the same","page_number":94,"box":{"x":116,"y":721,"width":763,"height":12}},{"id":"cdb571c7-d9bf-46bc-a93a-01374d9157a2","block_type":"box","text":"rights as holders of the company’s common stock.","page_number":94,"box":{"x":117,"y":736,"width":371,"height":12}},{"id":"71c13879-7f46-44d6-98bd-9ec341e501d7","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":94,"box":{"x":116,"y":769,"width":271,"height":12}},{"id":"d0b4f167-8b24-4b14-9357-3fa174d92ac1","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes","page_number":94,"box":{"x":394,"y":769,"width":453,"height":12}},{"id":"67178368-1928-4d65-b8fa-4475297b51f4","block_type":"box","text":"representing debt of the issuer, usually a financial institution. ETNs combine aspects of both bonds and","page_number":94,"box":{"x":117,"y":785,"width":765,"height":12}},{"id":"200fed48-a90b-4074-8aa1-f2af04cceda6","block_type":"box","text":"ETFs. An ETN’s returns are based on the performance of one or more underlying assets, reference","page_number":94,"box":{"x":117,"y":800,"width":737,"height":12}},{"id":"439cdecb-9f5c-4b92-adfd-7c6313ba2aa4","block_type":"box","text":"rates or indexes, minus fees and expenses. Similar to ETFs, ETNs are listed on an exchange and","page_number":94,"box":{"x":117,"y":816,"width":724,"height":12}},{"id":"351666f7-1639-4a9b-8953-f9e3665b8265","block_type":"box","text":"traded in the secondary market. However, unlike an ETF, an ETN can be held until the ETN’s maturity,","page_number":94,"box":{"x":116,"y":831,"width":767,"height":12}},{"id":"3354ab80-7fc3-4bcd-8a39-d2121466ecda","block_type":"box","text":"at which time the issuer will pay a return linked to the performance of the specific asset, index or rate","page_number":94,"box":{"x":116,"y":847,"width":753,"height":12}},{"id":"a0c6c9fa-8088-4980-bfaf-93026e637aaf","block_type":"box","text":"(“reference instrument”) to which the ETN is linked minus certain fees. Unlike regular bonds, ETNs do","page_number":94,"box":{"x":117,"y":862,"width":758,"height":12}},{"id":"d5d3aba4-e4b8-4e4d-9388-2e92872de648","block_type":"box","text":"not make periodic interest payments, and principal is not protected.","page_number":94,"box":{"x":117,"y":878,"width":503,"height":12}},{"id":"9eea3c56-6ac4-48e5-8c8a-1f4acd6dfed3","block_type":"box","text":"II-35","page_number":94,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"581aba69-6db5-497e-ad2b-5bec3e23689e","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":94,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3c0246a1-3644-49b1-9302-4099cc965786","block_type":"box","text":"The value of an ETN may be influenced by, among other things, time to maturity, level of supply and","page_number":95,"box":{"x":116,"y":87,"width":749,"height":12}},{"id":"d5dd4214-62ea-4cab-9877-1265ada44d4b","block_type":"box","text":"demand for the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable","page_number":95,"box":{"x":116,"y":102,"width":736,"height":13}},{"id":"d0cebd04-ba0b-466e-8a47-e66fdfbb6028","block_type":"box","text":"interest rates, the performance of the reference instrument, changes in the issuer’s credit rating and","page_number":95,"box":{"x":117,"y":118,"width":745,"height":12}},{"id":"fd43a686-db03-4e0d-aa1c-ea439af6110f","block_type":"box","text":"economic, legal, political or geographic events that affect the reference instrument. ETNs are subject to","page_number":95,"box":{"x":116,"y":134,"width":772,"height":12}},{"id":"c1fd4499-8b5c-4f2a-ab3c-be26e3a6c00e","block_type":"box","text":"credit risk and the value of the ETN may drop due to a downgrade in an issuer’s credit rating, despite","page_number":95,"box":{"x":116,"y":149,"width":755,"height":12}},{"id":"5eaa8835-2b30-4bbf-b578-5520915613c7","block_type":"box","text":"the underlying reference instrument remaining unchanged. When a Fund invests in ETNs, it will bear","page_number":95,"box":{"x":116,"y":165,"width":752,"height":12}},{"id":"9410a084-64c8-4788-ae88-274abee66bb9","block_type":"box","text":"its proportionate share of any fees and expenses borne by the ETN.","page_number":95,"box":{"x":117,"y":180,"width":509,"height":12}},{"id":"b327fd85-8819-4fa0-be54-32f6ad7c9dcb","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference","page_number":95,"box":{"x":116,"y":212,"width":720,"height":12}},{"id":"4d8217d0-d56c-40b3-95dc-5577e070a61e","block_type":"box","text":"instrument. ETNs also incur certain expenses not incurred by their applicable reference instrument.","page_number":95,"box":{"x":117,"y":227,"width":740,"height":13}},{"id":"1404ed67-f1b6-48a7-805d-0ad038773bfa","block_type":"box","text":"Some ETNs that use leverage may, at times, be illiquid and","page_number":95,"box":{"x":116,"y":243,"width":446,"height":12}},{"id":"0be0b316-89dc-4d95-a05f-854e3a2c4c59","block_type":"box","text":"may be difficult to purchase or sell at a fair","page_number":95,"box":{"x":563,"y":243,"width":319,"height":12}},{"id":"631e1473-b71c-49a5-aaf7-eade57565f0d","block_type":"box","text":"price. Levered ETNs are subject to the same risk as other instruments that use leverage in any form.","page_number":95,"box":{"x":117,"y":259,"width":751,"height":12}},{"id":"681a6ac3-3d2d-4501-b142-ae120ec88944","block_type":"box","text":"While leverage allows for greater potential return, the potential for loss is also greater. Finally,","page_number":95,"box":{"x":116,"y":274,"width":700,"height":12}},{"id":"097344c3-5d98-43fa-aef8-cbd56e13dfb8","block_type":"box","text":"additional losses may be incurred if the investment loses value because, in addition to the money lost","page_number":95,"box":{"x":116,"y":290,"width":757,"height":12}},{"id":"c38b4929-64c2-405c-b5d4-026079276509","block_type":"box","text":"on the investment, the loan still needs to be repaid.","page_number":95,"box":{"x":116,"y":305,"width":384,"height":12}},{"id":"669e5cf6-b5f3-4ffb-bc1e-ac3b52b013ba","block_type":"box","text":"Because the return on the ETN is dependent on the issuer’s ability or willingness to meet its","page_number":95,"box":{"x":117,"y":337,"width":685,"height":12}},{"id":"4fbc530a-1dfc-4b9d-8ea8-fddbc8653465","block_type":"box","text":"obligations, the value of the ETN may change due to a change in the issuer’s credit rating, despite no","page_number":95,"box":{"x":116,"y":352,"width":757,"height":13}},{"id":"ef856f62-a0b5-4131-8133-df8ad06e138a","block_type":"box","text":"change in the underlying reference instrument. The market value of ETN shares may differ from the","page_number":95,"box":{"x":116,"y":368,"width":744,"height":12}},{"id":"3ed0a7a1-c676-40ae-854f-852ce50723ae","block_type":"box","text":"value of the reference instrument. This difference in price may be due to the fact that the supply and","page_number":95,"box":{"x":116,"y":384,"width":748,"height":12}},{"id":"8d4d8b01-fdfc-4abd-89a4-c2de250b76a9","block_type":"box","text":"demand in the market for ETN shares at any point in time is not always identical to the supply and","page_number":95,"box":{"x":116,"y":399,"width":732,"height":12}},{"id":"79d0111b-9985-464b-afd7-66be736d1d88","block_type":"box","text":"demand in the market for the assets underlying the reference instrument that the ETN seeks to track.","page_number":95,"box":{"x":116,"y":415,"width":755,"height":12}},{"id":"17def6d8-3078-41ab-b53a-d7f4a020bd89","block_type":"box","text":"There may be restrictions on the Fund’s right to redeem its investment in an ETN, which are generally","page_number":95,"box":{"x":116,"y":447,"width":761,"height":12}},{"id":"6e6d7715-d77d-4fd9-8264-6e2a707cb411","block_type":"box","text":"meant to be held until maturity. The Fund’s decision to sell its ETN holdings may be limited by the","page_number":95,"box":{"x":117,"y":462,"width":728,"height":12}},{"id":"c083f2db-8f38-448a-9018-8c466cfe24c8","block_type":"box","text":"availability of a secondary market. An investor in an ETN could lose some or all of the amount","page_number":95,"box":{"x":116,"y":477,"width":701,"height":13}},{"id":"9a2e0903-3fbe-436b-a20e-fac2e44f5ca5","block_type":"box","text":"invested.","page_number":95,"box":{"x":117,"y":493,"width":71,"height":10}},{"id":"a0c52b35-541a-43e2-b400-d9c5cccabfe3","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a","page_number":95,"box":{"x":117,"y":525,"width":739,"height":12}},{"id":"64148dea-d92e-4399-a676-064fb0c340c2","block_type":"box","text":"court may not uphold, how the Funds characterize and treat ETNs for tax purposes. The timing and","page_number":95,"box":{"x":116,"y":540,"width":742,"height":13}},{"id":"203ab18c-0007-43c4-9b6c-05847198be50","block_type":"box","text":"character of income and gains derived by a Fund from investments in ETNs may be affected by future","page_number":95,"box":{"x":116,"y":556,"width":762,"height":12}},{"id":"a48f5e05-8170-41ba-a896-272db14f630b","block_type":"box","text":"legislation.","page_number":95,"box":{"x":117,"y":572,"width":83,"height":12}},{"id":"4569cbad-a22c-4c3b-b09a-10c01cc37583","block_type":"box","text":"Foreign Investments.","page_number":95,"box":{"x":116,"y":604,"width":174,"height":12}},{"id":"5919823e-cd98-48c1-a3ea-9b29f287e3e5","block_type":"box","text":"Foreign Investment Risks.","page_number":95,"box":{"x":116,"y":627,"width":193,"height":12}},{"id":"19a61e39-dd00-459c-87aa-866a104cc5d2","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from","page_number":95,"box":{"x":310,"y":627,"width":540,"height":12}},{"id":"03516d1a-24a3-422a-9632-7beab161dabc","block_type":"box","text":"issuers located in emerging market countries. These securities may be denominated in U.S. dollars or","page_number":95,"box":{"x":117,"y":643,"width":760,"height":12}},{"id":"ecb4f4d8-a877-42e7-89be-bdff795e2eaf","block_type":"box","text":"in a foreign currency. Investing in foreign securities involves risks not typically associated with investing","page_number":95,"box":{"x":117,"y":658,"width":770,"height":12}},{"id":"17c33be1-38e4-49df-b675-a2cd6be39453","block_type":"box","text":"in securities of companies organized and operated in the United States that can increase the chances","page_number":95,"box":{"x":117,"y":674,"width":754,"height":12}},{"id":"9b2b3037-ecf6-4490-b60b-d73a366e2f6d","block_type":"box","text":"that a Fund will lose money.","page_number":95,"box":{"x":116,"y":689,"width":207,"height":12}},{"id":"514687ea-bc3a-4617-bb87-bef7f5351b01","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be","page_number":95,"box":{"x":116,"y":721,"width":757,"height":12}},{"id":"a32fc838-1422-421e-8bb5-d05424565c0e","block_type":"box","text":"foreign securities (but rather deemed to be U.S. securities) if (i) the company’s principal operations are","page_number":95,"box":{"x":116,"y":737,"width":761,"height":12}},{"id":"3765a3e0-b5bc-4eb2-8ee0-2d2affc632c0","block_type":"box","text":"conducted from the U.S., (ii) the company’s equity securities trade principally on a U.S. stock","page_number":95,"box":{"x":116,"y":752,"width":689,"height":12}},{"id":"be757069-39cf-4c35-a1a7-0bb05c1b9e2c","block_type":"box","text":"exchange, (iii) the company does a substantial amount of business in the U.S. or (iv) the issuer of","page_number":95,"box":{"x":116,"y":768,"width":725,"height":12}},{"id":"13a5e404-8c5c-4d07-a0da-7b5bf229ef3e","block_type":"box","text":"securities is included in the Fund’s primary U.S. benchmark index.","page_number":95,"box":{"x":116,"y":783,"width":490,"height":12}},{"id":"205e3f05-327b-4d62-9629-aba634a427af","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations","page_number":95,"box":{"x":117,"y":815,"width":721,"height":12}},{"id":"5b7edd31-220f-4c5b-b680-af784a15dad6","block_type":"box","text":"issued or guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities","page_number":95,"box":{"x":117,"y":831,"width":767,"height":12}},{"id":"d3c823d2-a8a7-41f0-be51-ccdd8dbd30a3","block_type":"box","text":"or political subdivisions, including a foreign state, province or municipality; (b) debt obligations of","page_number":95,"box":{"x":116,"y":846,"width":720,"height":12}},{"id":"65406fe7-15b3-473b-9a44-0c61623b2766","block_type":"box","text":"supranational organizations; (c) debt obligations of foreign banks and bank holding companies;","page_number":95,"box":{"x":116,"y":862,"width":710,"height":12}},{"id":"611aff50-44d6-4b8c-9802-77c489078963","block_type":"box","text":"(d) debt obligations of domestic banks and corporations issued in foreign currencies; (e) debt","page_number":95,"box":{"x":117,"y":877,"width":694,"height":12}},{"id":"6cb0879f-103f-4122-b17b-6a7cf964ebbf","block_type":"box","text":"II-36","page_number":95,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"14dcafe4-ff4f-49cf-af08-191e7d61903a","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":95,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"933db5fb-0f08-4785-a3b5-4df57055cf3e","block_type":"box","text":"obligations denominated in the Euro; and (f) foreign corporate debt securities and commercial paper.","page_number":96,"box":{"x":116,"y":87,"width":752,"height":12}},{"id":"0363128a-5889-4d34-81ab-588e14f6cef8","block_type":"box","text":"Such securities may include loan participations and assignments, convertible securities and","page_number":96,"box":{"x":116,"y":102,"width":684,"height":13}},{"id":"04aea5c2-0f81-4831-8551-f7941df74009","block_type":"box","text":"zero-coupon securities.","page_number":96,"box":{"x":116,"y":118,"width":178,"height":12}},{"id":"9f310bcb-5240-43b9-b415-49323bf1b3e4","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign","page_number":96,"box":{"x":117,"y":149,"width":729,"height":12}},{"id":"bd2c07cc-32df-4103-aff1-477299d18bde","block_type":"box","text":"withholding taxes.","page_number":96,"box":{"x":116,"y":165,"width":138,"height":12}},{"id":"b3ff1383-6908-4d00-8cb9-c85355d71c80","block_type":"box","text":"To the extent that the underlying securities or other instruments held by a Fund trade on foreign","page_number":96,"box":{"x":116,"y":196,"width":715,"height":12}},{"id":"c040b8bc-6370-499a-8951-98c33a7625d5","block_type":"box","text":"exchanges or in foreign markets that are closed when the securities exchange on which the Fund’s","page_number":96,"box":{"x":116,"y":211,"width":740,"height":12}},{"id":"d3868c2d-11b2-4ec5-ae4c-39844348194b","block_type":"box","text":"shares trade is open, there are likely to be deviations between the current price of such an underlying","page_number":96,"box":{"x":116,"y":227,"width":758,"height":12}},{"id":"b2e818e1-bec6-4273-8d2c-c6c9d5ce169c","block_type":"box","text":"security and the last quoted price for the underlying security (i.e., the Fund’s quote from the closed","page_number":96,"box":{"x":116,"y":242,"width":736,"height":12}},{"id":"ffd03d4e-5f9b-4c94-beb3-74912fe65312","block_type":"box","text":"foreign market). The impact of a closed foreign market on a Fund is likely to be greater where a large","page_number":96,"box":{"x":116,"y":258,"width":755,"height":12}},{"id":"715d4d17-6de0-4067-a135-5380ce526678","block_type":"box","text":"portion of the Fund’s underlying securities or other instruments trade on that closed foreign market or","page_number":96,"box":{"x":117,"y":273,"width":754,"height":12}},{"id":"1c1a057f-1415-4016-a8a7-6a0eea9ded97","block_type":"box","text":"when the foreign market is closed for unscheduled reasons. These deviations may result in premiums","page_number":96,"box":{"x":116,"y":289,"width":759,"height":12}},{"id":"6dca146e-7567-410e-94c2-1697eda6dab6","block_type":"box","text":"or discounts to certain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":96,"box":{"x":116,"y":304,"width":718,"height":12}},{"id":"6cb791f5-0060-412c-bac3-69851ab84ae7","block_type":"box","text":"Foreign Market Risk.","page_number":96,"box":{"x":116,"y":335,"width":152,"height":12}},{"id":"9464adec-4832-40b5-85d2-0d45332538c1","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more","page_number":96,"box":{"x":269,"y":335,"width":521,"height":12}},{"id":"64e88615-6f54-4c7d-a053-da87aed6bf0b","block_type":"box","text":"diversification than a Fund that invests only in the United States because securities traded on foreign","page_number":96,"box":{"x":116,"y":351,"width":746,"height":12}},{"id":"911f44ed-cd2a-4e50-9cf9-7d0e1974bfb5","block_type":"box","text":"markets have often (though not always) performed differently from securities traded in the United","page_number":96,"box":{"x":117,"y":366,"width":715,"height":12}},{"id":"0effb484-fabe-4fac-b684-c9864738df1f","block_type":"box","text":"States. However, such investments often involve risks not present in U.S. investments that can increase","page_number":96,"box":{"x":116,"y":382,"width":769,"height":12}},{"id":"d541e5ca-71b0-478a-93fb-1fad89f6db76","block_type":"box","text":"the chances that a Fund will lose money. In particular, a Fund is subject to the risk that, because there","page_number":96,"box":{"x":116,"y":397,"width":756,"height":12}},{"id":"4716e138-4440-4326-8ffe-18ab1e017789","block_type":"box","text":"are generally fewer investors on foreign exchanges and a smaller number of shares traded each day, it","page_number":96,"box":{"x":116,"y":413,"width":762,"height":12}},{"id":"2a4bfc96-ebf7-4604-9742-f4390976e67d","block_type":"box","text":"may be difficult for the Fund to buy and sell securities on those exchanges. In addition, prices of foreign","page_number":96,"box":{"x":117,"y":428,"width":763,"height":12}},{"id":"9f4e2f14-6463-4445-a5e9-db95dd9b3f89","block_type":"box","text":"securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":96,"box":{"x":116,"y":444,"width":719,"height":12}},{"id":"13466567-7858-4c10-9191-c7581fbf47d9","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of","page_number":96,"box":{"x":116,"y":459,"width":727,"height":12}},{"id":"e0ce5321-e626-43a8-a5c0-9bacdc40e6e4","block_type":"box","text":"punitive taxes or tariffs. In addition, economic conditions, such as volatile currency exchange rates and","page_number":96,"box":{"x":117,"y":475,"width":759,"height":12}},{"id":"d6e321b2-ae9b-4112-b563-86884593263f","block_type":"box","text":"interest rates, political events, military action and other conditions may, without prior warning, lead to the","page_number":96,"box":{"x":117,"y":490,"width":770,"height":12}},{"id":"5e7bd6e5-e53a-4426-b299-06274bd9ab2a","block_type":"box","text":"governments of certain countries, or the U.S. Government with respect to certain countries, prohibiting","page_number":96,"box":{"x":116,"y":506,"width":756,"height":12}},{"id":"3a41ab1f-8fa6-4e10-a8b5-b4e4f9e0b358","block_type":"box","text":"or imposing substantial restrictions through capital controls and/or sanctions on foreign investing in the","page_number":96,"box":{"x":116,"y":521,"width":758,"height":12}},{"id":"ec7af8b2-be87-42ca-9bda-ce733f70ea95","block_type":"box","text":"capital markets or certain industries in those countries. Capital controls and/or sanctions may include","page_number":96,"box":{"x":116,"y":537,"width":746,"height":12}},{"id":"0266085a-657c-4d76-98a8-e7a819937c4f","block_type":"box","text":"the prohibition of, or restrictions on, the ability to own or transfer currency, securities, derivatives or","page_number":96,"box":{"x":116,"y":552,"width":730,"height":12}},{"id":"cb2a17f9-0359-4285-8eae-37a2c05c5725","block_type":"box","text":"other assets and may also include retaliatory actions of one government against another government,","page_number":96,"box":{"x":116,"y":568,"width":752,"height":12}},{"id":"bd30e220-8ff5-40da-b344-b4f482feb7de","block_type":"box","text":"such as seizure of assets. Any of these actions could severely impair a Fund’s ability to purchase, sell,","page_number":96,"box":{"x":116,"y":583,"width":758,"height":12}},{"id":"a6a99549-0a57-4c5a-82c1-ff2858700bb0","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the","page_number":96,"box":{"x":116,"y":599,"width":738,"height":12}},{"id":"fbe38842-c806-4b40-90fb-977dad6bdeac","block_type":"box","text":"ability to transfer the Fund’s assets or income back into the United States, and could negatively impact","page_number":96,"box":{"x":116,"y":614,"width":758,"height":12}},{"id":"b4795afd-8149-481e-9685-39539862a91d","block_type":"box","text":"the value and/or liquidity of such assets or otherwise adversely affect a Fund’s operations, causing the","page_number":96,"box":{"x":116,"y":630,"width":757,"height":12}},{"id":"03970d56-c3da-4bd0-963c-807488c695eb","block_type":"box","text":"Fund to decline in value. Other potential foreign market risks include exchange controls, difficulties in","page_number":96,"box":{"x":117,"y":645,"width":745,"height":12}},{"id":"db72e204-6c31-4f9b-a671-79e10ba38462","block_type":"box","text":"pricing securities, defaults on foreign government securities, difficulties in enforcing favorable legal","page_number":96,"box":{"x":117,"y":661,"width":722,"height":12}},{"id":"e16fc7bc-377d-4d9a-ba87-378efc5aea03","block_type":"box","text":"judgments in foreign courts, and political and social conditions, such as diplomatic relations,","page_number":96,"box":{"x":115,"y":676,"width":674,"height":12}},{"id":"0e0974a4-a860-4e8c-9949-d617ad9b8b31","block_type":"box","text":"confiscatory taxation, expropriation, limitation on the removal of funds or assets, or imposition of (or","page_number":96,"box":{"x":116,"y":692,"width":730,"height":12}},{"id":"c723cd50-dc6e-4bf6-a068-13450c9f1a54","block_type":"box","text":"change in) exchange control regulations. Legal remedies available to investors in certain foreign","page_number":96,"box":{"x":116,"y":707,"width":705,"height":12}},{"id":"7ebc673f-3ab8-4bbd-88cb-5e968db228cf","block_type":"box","text":"countries may be less extensive than those available to investors in the United States or other foreign","page_number":96,"box":{"x":116,"y":723,"width":745,"height":12}},{"id":"5c544412-c1da-40a2-a14f-fa89d552fb7b","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the","page_number":96,"box":{"x":116,"y":738,"width":746,"height":12}},{"id":"fc57f088-31f5-4b76-9f5c-a511b28c96fd","block_type":"box","text":"United States or abroad could result in appreciation or depreciation of portfolio securities and could","page_number":96,"box":{"x":117,"y":754,"width":725,"height":12}},{"id":"ae45ef25-c30f-48e6-9803-31629a9c0b4c","block_type":"box","text":"favorably or adversely affect a Fund’s operations.","page_number":96,"box":{"x":116,"y":769,"width":362,"height":12}},{"id":"f8c5a378-1fe5-449f-94b1-3fb4d954e336","block_type":"box","text":"Foreign Economy Risk.","page_number":96,"box":{"x":116,"y":800,"width":172,"height":12}},{"id":"4d8f2543-6275-4845-8dab-25b442258d2f","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with","page_number":96,"box":{"x":295,"y":800,"width":579,"height":12}},{"id":"c5f2a171-8531-4a9c-91a8-e15d3bc708f5","block_type":"box","text":"that of the United States with respect to such issues as growth of gross national product, reinvestment","page_number":96,"box":{"x":116,"y":816,"width":759,"height":12}},{"id":"8f0f10ac-a1a2-4bc5-8f41-2f790c94d3dd","block_type":"box","text":"of capital, resources, and balance of payments position. Certain such economies may rely heavily on","page_number":96,"box":{"x":116,"y":831,"width":754,"height":12}},{"id":"b008ff0d-9172-47ad-be52-5a4f29effe7e","block_type":"box","text":"particular industries or foreign capital and are more vulnerable to diplomatic developments, the","page_number":96,"box":{"x":117,"y":847,"width":707,"height":12}},{"id":"f484234f-720f-4f14-82b7-1ac0b535195c","block_type":"box","text":"imposition of economic sanctions against a particular country or countries, changes in international","page_number":96,"box":{"x":117,"y":862,"width":737,"height":12}},{"id":"c90d4fa0-3fd6-4e89-8d4a-bb0d5a50322c","block_type":"box","text":"trading patterns, trade barriers, and other protectionist or retaliatory measures.","page_number":96,"box":{"x":116,"y":878,"width":589,"height":12}},{"id":"6bd74665-f491-40c5-bba9-0274c725c1f2","block_type":"box","text":"II-37","page_number":96,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"2cb1b581-2ea1-4ac4-aefd-8aa5d63c9982","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":96,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9e399ef7-4ac8-45b2-a7a9-18e169db15f5","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":97,"box":{"x":117,"y":87,"width":257,"height":12}},{"id":"873b36ec-ab89-4f12-915b-212689aa06a6","block_type":"box","text":"Because foreign securities generally are denominated and pay","page_number":97,"box":{"x":376,"y":87,"width":475,"height":12}},{"id":"bb8b11fe-634d-4030-9446-2f74f5b73a7b","block_type":"box","text":"dividends or interest in foreign currencies, the value of a Fund that invests in foreign securities as","page_number":97,"box":{"x":116,"y":102,"width":727,"height":13}},{"id":"af228864-34b0-4bd7-8491-47dbcc79ec09","block_type":"box","text":"measured in U.S. dollars will be affected favorably or unfavorably by changes in exchange rates.","page_number":97,"box":{"x":117,"y":118,"width":721,"height":12}},{"id":"2fa16e2d-99de-449e-939e-42e0afc76e41","block_type":"box","text":"Generally, when the U.S. dollar rises in value against a foreign currency, a security denominated in","page_number":97,"box":{"x":117,"y":134,"width":739,"height":12}},{"id":"79e7e0d9-4f90-49b7-af69-55d9ef0a99ae","block_type":"box","text":"that currency loses value because the currency is worth fewer U.S. dollars. Conversely, when the U.S.","page_number":97,"box":{"x":116,"y":149,"width":765,"height":12}},{"id":"410a187b-f0c5-433b-9e10-20ca20444aa0","block_type":"box","text":"dollar decreases in value against a foreign currency, a security denominated in that currency gains","page_number":97,"box":{"x":116,"y":165,"width":737,"height":12}},{"id":"0b8db177-4ccb-4f71-8c96-3adb7c54f061","block_type":"box","text":"value because the currency is worth more U.S. dollars. This risk, generally known as “currency risk,”","page_number":97,"box":{"x":116,"y":180,"width":749,"height":12}},{"id":"7612262f-09da-4417-822f-e2b3eb2d8d85","block_type":"box","text":"means that a stronger U.S. dollar will reduce returns for U.S. investors while a weak U.S. dollar will","page_number":97,"box":{"x":117,"y":196,"width":738,"height":12}},{"id":"75c95a22-de06-4405-a923-6728c1c7a73d","block_type":"box","text":"increase those returns. Currency exchange rates can also be affected unpredictably by intervention by","page_number":97,"box":{"x":117,"y":211,"width":764,"height":12}},{"id":"4344d585-c1f0-4075-853b-edf931cad340","block_type":"box","text":"U.S. or foreign governments or central banks, or the failure to intervene, or buy currency controls or","page_number":97,"box":{"x":117,"y":227,"width":743,"height":12}},{"id":"b9c2ed46-92fe-4dba-8a92-1b53a361d341","block_type":"box","text":"political developments in the United States or abroad.","page_number":97,"box":{"x":117,"y":242,"width":402,"height":12}},{"id":"6f993b97-a42d-4d4f-a25d-109e0936bf41","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":97,"box":{"x":117,"y":269,"width":487,"height":12}},{"id":"b9fdf09c-324f-47ee-b2d1-ca400c9911be","block_type":"box","text":"Many foreign governments","page_number":97,"box":{"x":606,"y":269,"width":208,"height":12}},{"id":"4634f97b-83b7-4797-a5fb-d336c571ff62","block_type":"box","text":"supervise and regulate stock exchanges, brokers and the sale of securities less than does the United","page_number":97,"box":{"x":116,"y":285,"width":756,"height":12}},{"id":"46cac38a-2a5b-4501-8133-0774331d5cce","block_type":"box","text":"States. Some countries may not have laws to protect investors comparable to the U.S. securities laws.","page_number":97,"box":{"x":116,"y":300,"width":765,"height":12}},{"id":"d3216463-5d0a-4303-9aa6-0cf4d0d7c513","block_type":"box","text":"For example, some foreign countries may have no laws or rules against insider trading. Insider trading","page_number":97,"box":{"x":117,"y":316,"width":762,"height":12}},{"id":"b9d5d443-9543-4337-9c65-12e746f13bfc","block_type":"box","text":"occurs when a person buys or sells a company’s securities based on nonpublic information about that","page_number":97,"box":{"x":116,"y":331,"width":760,"height":12}},{"id":"a0f36c89-7546-4fe6-bb87-f83b01daa7d8","block_type":"box","text":"company. Accounting standards in other countries are not necessarily the same as in the United","page_number":97,"box":{"x":116,"y":347,"width":719,"height":12}},{"id":"99be228c-b6de-4bff-a2a9-cc132de2ce36","block_type":"box","text":"States. If the accounting standards in another country do not require as much detail as U.S. accounting","page_number":97,"box":{"x":116,"y":362,"width":771,"height":12}},{"id":"6460c40d-68e2-4d22-8ae7-46a4f36f302c","block_type":"box","text":"standards, it may be harder for Fund management to completely and accurately determine a","page_number":97,"box":{"x":116,"y":378,"width":691,"height":12}},{"id":"8097a036-054a-4e3d-a8bb-fe0bbd507848","block_type":"box","text":"company’s financial condition. In addition, the U.S. Government has from time to time in the past","page_number":97,"box":{"x":116,"y":393,"width":722,"height":12}},{"id":"a23477bd-371b-4110-9fde-53e7da7a5b82","block_type":"box","text":"imposed restrictions, through penalties and otherwise, on foreign investments by U.S. investors such","page_number":97,"box":{"x":117,"y":409,"width":752,"height":12}},{"id":"46ad501e-ba4d-4437-b385-ea5f1167d0ee","block_type":"box","text":"as the Fund. If such restrictions should be reinstituted, it might become necessary for the Fund to","page_number":97,"box":{"x":116,"y":424,"width":727,"height":12}},{"id":"fce688ac-8945-4d9c-8718-5bd90dd10cfe","block_type":"box","text":"invest all or substantially all of its assets in U.S. securities. Also, brokerage commissions and other","page_number":97,"box":{"x":117,"y":440,"width":737,"height":12}},{"id":"bd8f6a16-27fe-4b70-bd01-06e4038f91b7","block_type":"box","text":"costs of buying or selling securities often are higher in foreign countries than they are in the United","page_number":97,"box":{"x":116,"y":455,"width":736,"height":12}},{"id":"1f900e72-6c5e-498b-9f67-952510f30475","block_type":"box","text":"States. This reduces the amount the Fund can earn on its investments.","page_number":97,"box":{"x":116,"y":471,"width":532,"height":9}},{"id":"e5562c47-a09e-4f87-ad73-2010da41cf68","block_type":"box","text":"Certain Risks of Holding Fund Assets Outside the United States.","page_number":97,"box":{"x":117,"y":498,"width":477,"height":12}},{"id":"4fdf6641-22b6-4c57-90c0-93ca978ccac8","block_type":"box","text":"A Fund generally holds its foreign","page_number":97,"box":{"x":596,"y":498,"width":259,"height":12}},{"id":"f7a55fc2-7f16-4439-946d-cb9d737d124a","block_type":"box","text":"securities and cash in foreign banks and securities depositories. Some foreign banks and securities","page_number":97,"box":{"x":116,"y":513,"width":743,"height":12}},{"id":"2073ff98-a30f-4a5c-8f01-83dccf0ab265","block_type":"box","text":"depositories may be recently organized or new to the foreign custody business. In addition, there may","page_number":97,"box":{"x":116,"y":529,"width":760,"height":12}},{"id":"e47bc3e1-0abd-4f70-aeec-f7c92c2eea05","block_type":"box","text":"be limited or no regulatory oversight over their operations. Also, the laws of certain countries may put","page_number":97,"box":{"x":117,"y":544,"width":754,"height":12}},{"id":"aa4c3785-e494-4486-a6ac-3a46152d2b4d","block_type":"box","text":"limits on a Fund’s ability to recover its assets if a foreign bank or depository or issuer of a security or","page_number":97,"box":{"x":117,"y":560,"width":747,"height":12}},{"id":"9b29b570-16b5-4a05-8308-9c2e1467cb3d","block_type":"box","text":"any of their agents goes bankrupt. In addition, it is often more expensive for a Fund to buy, sell and","page_number":97,"box":{"x":116,"y":575,"width":741,"height":12}},{"id":"6dde33f2-9be2-4200-a28e-73427ea243a5","block_type":"box","text":"hold securities in certain foreign markets than in the United States. The increased expense of investing","page_number":97,"box":{"x":117,"y":591,"width":768,"height":12}},{"id":"8bc44438-fd04-42a0-a11e-3f7a1e0b9ef5","block_type":"box","text":"in foreign markets reduces the amount a Fund can earn on its investments and typically results in a","page_number":97,"box":{"x":117,"y":606,"width":741,"height":12}},{"id":"82691065-cc4b-44b2-9fe6-4778e57abf4f","block_type":"box","text":"higher operating expense ratio for the Fund as compared to investment companies that invest only in","page_number":97,"box":{"x":117,"y":622,"width":754,"height":12}},{"id":"93a2e20f-51ea-4f7f-a4d3-d316a267b437","block_type":"box","text":"the United States.","page_number":97,"box":{"x":116,"y":637,"width":138,"height":10}},{"id":"7c0bce9d-3c59-46f3-9dcd-abc3498771f6","block_type":"box","text":"Publicly Available Information.","page_number":97,"box":{"x":116,"y":665,"width":222,"height":12}},{"id":"7d9addd0-d868-4bf3-8f77-c59ab3e55b9c","block_type":"box","text":"In general, less information is publicly available with respect to foreign","page_number":97,"box":{"x":346,"y":665,"width":518,"height":12}},{"id":"cf93a13b-a990-4a5c-85b8-21314a8ce152","block_type":"box","text":"issuers than is available with respect to U.S. companies. Most foreign companies are also not subject","page_number":97,"box":{"x":117,"y":680,"width":753,"height":12}},{"id":"b76f7ea2-ec2b-489c-8a78-235c5a5d4899","block_type":"box","text":"to the uniform accounting and financial reporting requirements applicable to issuers in the United","page_number":97,"box":{"x":116,"y":696,"width":717,"height":12}},{"id":"ac13c9a7-8dc3-46e4-81c5-0103ebdde1ae","block_type":"box","text":"States. While the volume of transactions effected on foreign stock exchanges has increased in recent","page_number":97,"box":{"x":116,"y":711,"width":753,"height":12}},{"id":"c36abb32-8fc2-4f9f-bc68-6c3308ffca30","block_type":"box","text":"years, it remains appreciably below that of the New York Stock Exchange. Accordingly, a Fund’s","page_number":97,"box":{"x":116,"y":727,"width":716,"height":12}},{"id":"1d094b8b-93b6-4d5b-8ef8-93a219b9a45b","block_type":"box","text":"foreign investments may be less liquid than, and their prices may be more volatile than, comparable","page_number":97,"box":{"x":116,"y":742,"width":740,"height":12}},{"id":"57ae86a5-b570-4eeb-84ee-a4fa855156c1","block_type":"box","text":"investments in securities in U.S. companies. In addition, there is generally less government supervision","page_number":97,"box":{"x":117,"y":758,"width":765,"height":12}},{"id":"018dd510-cc39-4638-bd53-e0eee7039fd8","block_type":"box","text":"and regulation of securities exchanges, brokers and issuers in foreign countries than in the United","page_number":97,"box":{"x":116,"y":773,"width":726,"height":12}},{"id":"b4795dc9-af63-411a-a5fb-607cf9010c08","block_type":"box","text":"States.","page_number":97,"box":{"x":116,"y":789,"width":51,"height":9}},{"id":"58a3b33b-e2d5-4dc2-8ae3-6bf1542a113b","block_type":"box","text":"Settlement Risk.","page_number":97,"box":{"x":117,"y":816,"width":120,"height":9}},{"id":"ad3e3708-d09a-454b-8957-76cc6a05eb9b","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly","page_number":97,"box":{"x":244,"y":816,"width":606,"height":12}},{"id":"beeb58b6-28c7-498d-8352-9c5950e5e3fd","block_type":"box","text":"from those in the United States. Supervisory authorities may also be unable to apply standards which","page_number":97,"box":{"x":116,"y":831,"width":757,"height":12}},{"id":"3727b51b-7719-47a8-a4a5-aaf4136e5289","block_type":"box","text":"are comparable with those in the United States. Foreign settlement procedures and trade regulations","page_number":97,"box":{"x":116,"y":847,"width":754,"height":12}},{"id":"aa09dd55-2334-4f94-8d14-2ff9f7310850","block_type":"box","text":"also may involve certain risks (such as delays in payment for or delivery of securities) not typically","page_number":97,"box":{"x":116,"y":862,"width":731,"height":12}},{"id":"b6d1a312-07f9-49ab-946f-a2dcd5b1f3b9","block_type":"box","text":"generated by the settlement of U.S. investments.","page_number":97,"box":{"x":116,"y":878,"width":369,"height":12}},{"id":"9f84578e-1eb8-4cf9-972c-c7364af27904","block_type":"box","text":"II-38","page_number":97,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"6a430430-d071-411e-b998-91c856354d3e","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":97,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"37702ed0-216d-4b20-b597-5e1aa7cfea0c","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable,","page_number":98,"box":{"x":117,"y":87,"width":710,"height":12}},{"id":"4ba9b333-cc84-4d7e-a87f-17007fb09df0","block_type":"box","text":"increasing the risk of delayed settlements or losses of security certificates in markets that still rely on","page_number":98,"box":{"x":117,"y":102,"width":750,"height":13}},{"id":"7d483b08-ea8e-4d53-a14b-4fd7a8bd2d3e","block_type":"box","text":"physical settlement. Settlements in certain foreign countries at times have not kept pace with the","page_number":98,"box":{"x":117,"y":118,"width":720,"height":12}},{"id":"833ddf77-2490-4c89-be74-6f6cd96b8d94","block_type":"box","text":"number of securities transactions; these problems may make it difficult for a Fund to carry out","page_number":98,"box":{"x":117,"y":134,"width":698,"height":12}},{"id":"4acafc54-39f8-4d2f-9fe8-15a4b22c6caa","block_type":"box","text":"transactions. If a Fund cannot settle or is delayed in settling a purchase of securities, it may miss","page_number":98,"box":{"x":116,"y":149,"width":723,"height":12}},{"id":"ba2fc089-a55b-462f-8006-2acd3a1e944d","block_type":"box","text":"attractive investment opportunities and certain of its assets may be uninvested with no return earned","page_number":98,"box":{"x":116,"y":165,"width":751,"height":12}},{"id":"79e1031a-97a5-4594-b83b-36a14bbae446","block_type":"box","text":"thereon for some period. If a Fund cannot settle or is delayed in settling a sale of securities, it may lose","page_number":98,"box":{"x":116,"y":180,"width":769,"height":12}},{"id":"17436cc1-76c6-4b48-aec1-3c2a95719f6c","block_type":"box","text":"money if the value of the security then declines or, if it has contracted to sell the security to another","page_number":98,"box":{"x":117,"y":196,"width":739,"height":12}},{"id":"2e566f7a-f1cf-491a-8df5-5964a70cbc9d","block_type":"box","text":"party, the Fund could be liable to that party for any losses incurred.","page_number":98,"box":{"x":117,"y":211,"width":501,"height":12}},{"id":"5fb49638-2be2-4ed4-b9c4-ed483798f603","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing","page_number":98,"box":{"x":117,"y":242,"width":720,"height":12}},{"id":"88a5a289-7201-4cab-9946-dfc9348b7141","block_type":"box","text":"claims may arise in respect of securities held by or to be transferred to a Fund. Compensation","page_number":98,"box":{"x":116,"y":258,"width":703,"height":12}},{"id":"e5c494f7-337e-4c17-b276-d44d0e3c8287","block_type":"box","text":"schemes may not exist or may otherwise be limited or inadequate to meet the Fund’s claims in case of","page_number":98,"box":{"x":116,"y":273,"width":766,"height":12}},{"id":"6b0a1f1f-d563-46ac-b51c-86644ba6cd40","block_type":"box","text":"such event.","page_number":98,"box":{"x":116,"y":289,"width":90,"height":9}},{"id":"8e2aed7d-300c-4844-9c5b-ebb764789fdf","block_type":"box","text":"Sovereign Debt.","page_number":98,"box":{"x":117,"y":320,"width":118,"height":12}},{"id":"f991e6d4-131f-47a1-ac90-d12dcba6dace","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental","page_number":98,"box":{"x":236,"y":320,"width":616,"height":12}},{"id":"f206806d-b78a-41c7-a0c4-7906fc75aef4","block_type":"box","text":"entity that controls the repayment of sovereign debt may not be able or willing to repay the principal","page_number":98,"box":{"x":116,"y":335,"width":743,"height":12}},{"id":"4c4837f4-5b30-4584-881d-0b5397d42c01","block_type":"box","text":"and/or interest when due in accordance with the terms of such debt. A governmental entity’s","page_number":98,"box":{"x":116,"y":351,"width":689,"height":12}},{"id":"ea19fa41-f8a7-404f-a46d-656c6be11064","block_type":"box","text":"willingness or ability to repay principal and interest due in a timely manner may be affected by, among","page_number":98,"box":{"x":116,"y":366,"width":761,"height":12}},{"id":"5921bfcc-9a17-4154-b893-51541f58fbab","block_type":"box","text":"other factors, its cash flow situation, the extent of its foreign reserves, the availability of sufficient","page_number":98,"box":{"x":116,"y":382,"width":721,"height":12}},{"id":"64ddde84-1909-467a-a05d-19d81ab40160","block_type":"box","text":"foreign exchange on the date a payment is due, the relative size of the debt service burden to the","page_number":98,"box":{"x":116,"y":397,"width":728,"height":12}},{"id":"306f6b1f-58e8-4a46-9e2b-1291156d3ef4","block_type":"box","text":"economy as a whole, the governmental entity’s policy towards the International Monetary Fund and the","page_number":98,"box":{"x":116,"y":413,"width":770,"height":12}},{"id":"d550a609-d82a-44cf-9991-fcba9def6a8e","block_type":"box","text":"political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":98,"box":{"x":117,"y":428,"width":764,"height":12}},{"id":"cd9965c7-64d2-4126-bd3a-af776ff71b68","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others","page_number":98,"box":{"x":116,"y":444,"width":738,"height":12}},{"id":"34fc7394-e05e-4485-a588-adf10bd64aec","block_type":"box","text":"abroad to reduce principal and interest arrearages on their debt. The commitment on the part of these","page_number":98,"box":{"x":116,"y":459,"width":761,"height":12}},{"id":"52545296-ebfc-4eee-bb7e-58a17a767c3d","block_type":"box","text":"governments, agencies and others to make such disbursements may be conditioned on the","page_number":98,"box":{"x":116,"y":475,"width":684,"height":12}},{"id":"4e124be6-17fe-43da-b9a0-7a57a4ee4974","block_type":"box","text":"implementation of economic reforms and/or economic performance and the timely service of such","page_number":98,"box":{"x":117,"y":490,"width":730,"height":12}},{"id":"06e64769-9db5-4c97-b318-6cb1639ecafb","block_type":"box","text":"debtor’s obligations. Failure to implement such reforms, achieve such levels of economic performance","page_number":98,"box":{"x":116,"y":506,"width":763,"height":12}},{"id":"9835eec2-1da9-41dd-adf5-dc9de0800cd8","block_type":"box","text":"or repay principal or interest when due may result in the cancellation of such third parties’","page_number":98,"box":{"x":116,"y":521,"width":668,"height":12}},{"id":"a8d5adb9-978a-4b2a-84d8-ef9467c90303","block_type":"box","text":"commitments to lend funds to the governmental entity, which may further impair such debtor’s ability or","page_number":98,"box":{"x":116,"y":537,"width":769,"height":12}},{"id":"14bfd12f-a886-46a6-a308-85f2bc1ab3ca","block_type":"box","text":"willingness to timely service its debts. Consequently, governmental entities may default on their","page_number":98,"box":{"x":116,"y":552,"width":713,"height":12}},{"id":"f8169b0b-7085-418e-b2c2-b272469d98a7","block_type":"box","text":"sovereign debt.","page_number":98,"box":{"x":116,"y":568,"width":119,"height":12}},{"id":"3f67c0b3-8cbf-4bce-a697-bbbba8fa6c43","block_type":"box","text":"Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to","page_number":98,"box":{"x":117,"y":599,"width":730,"height":12}},{"id":"5c7ad151-43a0-441b-b5df-23b0afd50dc0","block_type":"box","text":"extend further loans to governmental entities. In the event of a default by a governmental entity, there","page_number":98,"box":{"x":116,"y":614,"width":758,"height":12}},{"id":"7bdc9cf4-5d3e-4ef1-9589-1064da34a81d","block_type":"box","text":"may be few or no effective legal remedies for collecting on such debt.","page_number":98,"box":{"x":117,"y":630,"width":519,"height":12}},{"id":"48e3b814-f90a-4efb-90c0-e67de78e8884","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":98,"box":{"x":118,"y":661,"width":230,"height":12}},{"id":"9169b441-8b2e-4615-91bf-89983a68de9c","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on","page_number":98,"box":{"x":349,"y":661,"width":469,"height":12}},{"id":"1f97c105-87f9-47a9-aeed-be688e7d6877","block_type":"box","text":"dividend and interest income (if any) received from issuers in certain countries and capital gains on the","page_number":98,"box":{"x":116,"y":676,"width":763,"height":12}},{"id":"801961a8-23a3-4e83-9d5a-e55d33e1dcfe","block_type":"box","text":"disposition of stocks or securities where such withholding tax reclaim is possible. Whether or when a","page_number":98,"box":{"x":116,"y":692,"width":745,"height":12}},{"id":"f7660001-6956-4a3d-8217-f8bd7394b67b","block_type":"box","text":"Fund will receive a withholding tax refund is within the control of the tax authorities in such countries.","page_number":98,"box":{"x":117,"y":707,"width":745,"height":12}},{"id":"2f64d2cb-fe40-4dbf-9222-dfc21ec7cbcb","block_type":"box","text":"Where a Fund expects to recover withholding taxes, the net asset value of the Fund generally includes","page_number":98,"box":{"x":116,"y":723,"width":762,"height":12}},{"id":"8cbadeb7-6041-4ac4-9d9b-13ed35b40670","block_type":"box","text":"accruals for such tax refunds. Each Fund regularly evaluates the probability of recovery. If the","page_number":98,"box":{"x":116,"y":738,"width":696,"height":12}},{"id":"641a33ea-6575-4451-b154-a0e069982b7c","block_type":"box","text":"likelihood of recovery materially decreases, due to, for example, a change in tax regulation or approach","page_number":98,"box":{"x":117,"y":754,"width":765,"height":12}},{"id":"ad1c7cef-fe8f-4f0d-ac76-e427e043c7ea","block_type":"box","text":"in the foreign country, accruals in a Fund’s net asset value for such refunds may be written down","page_number":98,"box":{"x":117,"y":769,"width":716,"height":12}},{"id":"36180ca4-41e4-4ceb-87cf-04ac7525858c","block_type":"box","text":"partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the","page_number":98,"box":{"x":117,"y":785,"width":755,"height":12}},{"id":"25c5b2d7-4484-4ff3-8256-edb81e7a2568","block_type":"box","text":"time an accrual is written down will bear the impact of the resulting reduction in net asset value","page_number":98,"box":{"x":116,"y":800,"width":703,"height":12}},{"id":"0d0153b3-264a-4a60-97a9-80104f5ef3c4","block_type":"box","text":"regardless of whether they were shareholders during the accrual period. Conversely, if a Fund receives","page_number":98,"box":{"x":117,"y":816,"width":765,"height":12}},{"id":"cc1d3192-c8ef-4c57-a25e-ee742290fe43","block_type":"box","text":"a tax refund that has not been previously accrued, shareholders in the Fund at the time of the","page_number":98,"box":{"x":116,"y":831,"width":699,"height":12}},{"id":"85bdac7f-9d38-4821-830e-20df82a90ae3","block_type":"box","text":"successful recovery will benefit from the resulting increase in the Fund’s net asset value. Shareholders","page_number":98,"box":{"x":116,"y":847,"width":767,"height":12}},{"id":"986e29b4-d029-4ee5-a113-1a9eb6286316","block_type":"box","text":"who sold their shares prior to such time will not benefit from such increase in the Fund’s net asset","page_number":98,"box":{"x":116,"y":862,"width":730,"height":12}},{"id":"9b814b10-8f73-4fa3-82b3-7d3744900760","block_type":"box","text":"value.","page_number":98,"box":{"x":116,"y":878,"width":49,"height":9}},{"id":"411f7b75-3015-44b9-94ab-8807ee00bf16","block_type":"box","text":"II-39","page_number":98,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"1c4c3179-f51a-4865-9930-b92287410110","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":98,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"5eb328ba-0fd4-4d11-b7a2-742aae318d4f","block_type":"box","text":"U.S. Economic Trading Partners Risk.","page_number":99,"box":{"x":117,"y":87,"width":287,"height":12}},{"id":"4e3ad1a2-0ef1-4326-8c06-946ae1089e51","block_type":"box","text":"The United States is a significant, and in some cases the most","page_number":99,"box":{"x":404,"y":87,"width":469,"height":12}},{"id":"13dbccbc-11f5-42a6-b680-55136cac9c05","block_type":"box","text":"significant, trading partner of, or foreign investor in, certain countries in which a Fund may invest. As a","page_number":99,"box":{"x":116,"y":102,"width":762,"height":13}},{"id":"01071792-86e6-4cf3-b93a-5bbd22f8843d","block_type":"box","text":"result, economic conditions of such countries may be particularly affected by changes in the U.S.","page_number":99,"box":{"x":117,"y":118,"width":723,"height":12}},{"id":"d6835239-1851-45ba-addc-ba6431e7b66c","block_type":"box","text":"economy. A decrease in U.S. imports or exports, new trade and financial regulations or tariffs, changes","page_number":99,"box":{"x":116,"y":134,"width":770,"height":12}},{"id":"ab947b5c-3d6c-44f7-8745-fc7176ef3e50","block_type":"box","text":"in the U.S. dollar exchange rate or an economic slowdown in the United States may have a material","page_number":99,"box":{"x":117,"y":149,"width":745,"height":12}},{"id":"1b54b509-65a2-4e30-8a28-52ad06e35964","block_type":"box","text":"adverse effect on a country’s economic conditions and, as a result, securities to which the Fund has","page_number":99,"box":{"x":116,"y":165,"width":746,"height":12}},{"id":"753f25a4-da68-4512-a9de-66a6017a62ec","block_type":"box","text":"exposure. Circumstances could arise that could prevent the timely payment of interest or principal on","page_number":99,"box":{"x":116,"y":180,"width":754,"height":12}},{"id":"b8dbb8ff-bc66-422a-bdbb-d4a4929f45ff","block_type":"box","text":"U.S. Government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result","page_number":99,"box":{"x":117,"y":196,"width":760,"height":12}},{"id":"4be7e56e-054c-44c9-b072-0823ff5ccfdf","block_type":"box","text":"in substantial negative consequences for the U.S. economy and the global financial system.","page_number":99,"box":{"x":117,"y":211,"width":685,"height":12}},{"id":"66916d69-5cb4-4906-b9a4-8286a4f25256","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including","page_number":99,"box":{"x":116,"y":238,"width":745,"height":12}},{"id":"adec8e2f-a4e0-429e-b1d9-a3ca077212a5","block_type":"box","text":"traditional allies, such as certain European countries, and historical adversaries, such as North Korea,","page_number":99,"box":{"x":116,"y":254,"width":761,"height":12}},{"id":"17da6d7f-6b1b-4498-ab0b-78c2c48f4ab5","block_type":"box","text":"Iran, China and Russia. If these relations were to worsen, it could adversely affect U.S. issuers as well","page_number":99,"box":{"x":117,"y":269,"width":763,"height":12}},{"id":"464220c9-7e1b-47c4-90ab-10aefe02e7e6","block_type":"box","text":"as non-U.S. issuers that rely on the United States for trade. The United States has also experienced","page_number":99,"box":{"x":116,"y":285,"width":748,"height":12}},{"id":"7871fe86-fd8c-4ae9-ab2b-f66aef8a1675","block_type":"box","text":"increased internal unrest and discord. If these trends were to continue, it may have an adverse impact","page_number":99,"box":{"x":117,"y":300,"width":761,"height":12}},{"id":"6475a610-edc1-43ce-9889-ae90c502dd67","block_type":"box","text":"on the U.S. economy and many of the issuers in which a Fund may invest.","page_number":99,"box":{"x":116,"y":316,"width":557,"height":12}},{"id":"f2bb456b-a081-44eb-bfe7-9b69c874181a","block_type":"box","text":"Funding Agreements.","page_number":99,"box":{"x":116,"y":343,"width":171,"height":12}},{"id":"6d005140-0581-41c6-bfaa-a9eb97470b1d","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar","page_number":99,"box":{"x":289,"y":343,"width":561,"height":12}},{"id":"ffedbc26-6f61-4ad9-94be-11bee2c9f77b","block_type":"box","text":"funding agreements. In connection with these investments, a Fund makes cash contributions to a","page_number":99,"box":{"x":116,"y":358,"width":727,"height":12}},{"id":"034b720b-4b49-4884-9c9f-df71eacd803d","block_type":"box","text":"deposit fund of an insurance company’s general account. The insurance company then credits to the","page_number":99,"box":{"x":116,"y":374,"width":753,"height":12}},{"id":"bac8e8d8-1f5d-464b-bfbd-af8ba729e169","block_type":"box","text":"Fund on a monthly basis guaranteed interest, which is based on an index. The funding agreements","page_number":99,"box":{"x":117,"y":389,"width":740,"height":12}},{"id":"8b045cc7-7b83-459b-bb35-bb44dea0e799","block_type":"box","text":"provide that this guaranteed interest will not be less than a certain minimum rate. The purchase price","page_number":99,"box":{"x":117,"y":405,"width":753,"height":12}},{"id":"32c1f9fe-073a-4c12-9b81-fc467966f46d","block_type":"box","text":"paid for a funding agreement becomes part of the general assets of the insurance company, and the","page_number":99,"box":{"x":117,"y":420,"width":749,"height":12}},{"id":"d876aca6-a03c-40b4-965b-3ed13f3dc14d","block_type":"box","text":"contract is paid from the general assets of the insurance company. Generally, funding agreements are","page_number":99,"box":{"x":116,"y":436,"width":764,"height":12}},{"id":"94077070-0b34-43d6-ae35-a7478d052e1c","block_type":"box","text":"not assignable or transferable without the permission of the issuing insurance companies, and an","page_number":99,"box":{"x":117,"y":451,"width":726,"height":12}},{"id":"a8e8407b-9d21-4057-a56e-6171a3e3f7f9","block_type":"box","text":"active secondary market in some funding agreements does not currently exist.","page_number":99,"box":{"x":116,"y":467,"width":586,"height":12}},{"id":"cde23d91-eb65-4ade-a9a2-741a1888e831","block_type":"box","text":"Guarantees","page_number":99,"box":{"x":117,"y":494,"width":91,"height":10}},{"id":"c4a32be7-5a43-4886-bc55-226792d16499","block_type":"box","text":".","page_number":99,"box":{"x":209,"y":502,"width":3,"height":1}},{"id":"7d8133d1-2999-4a15-b145-16eaffc77547","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate","page_number":99,"box":{"x":213,"y":494,"width":660,"height":12}},{"id":"2d08f8ce-c67a-43a2-901d-2cfc1d0b1b47","block_type":"box","text":"from the issuer of the security. Generally, the guarantor of a security (often an affiliate of the issuer) will","page_number":99,"box":{"x":116,"y":509,"width":771,"height":13}},{"id":"00cc5b37-1550-4118-a9c8-cdae8b0522b9","block_type":"box","text":"fulfill an issuer’s payment obligations under a security if the issuer is unable to do so.","page_number":99,"box":{"x":116,"y":525,"width":634,"height":12}},{"id":"9e58a72f-edf0-4e46-971e-dbba9be700ea","block_type":"box","text":"Illiquid Investments.","page_number":99,"box":{"x":116,"y":552,"width":166,"height":12}},{"id":"e2dd8626-77d5-4ace-8550-391861563ea1","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the","page_number":99,"box":{"x":284,"y":552,"width":557,"height":12}},{"id":"7c3891c9-f42d-446e-ba82-a23f221b61d7","block_type":"box","text":"acquisition, a Fund would have invested more than 15% of its net assets in illiquid investments. An","page_number":99,"box":{"x":116,"y":568,"width":737,"height":12}},{"id":"3bace167-e3a0-4243-8674-9cba94354dd3","block_type":"box","text":"illiquid investment is any investment that a Fund reasonably expects cannot be sold or disposed of in","page_number":99,"box":{"x":117,"y":583,"width":753,"height":12}},{"id":"cbabb3c0-92ac-4dc6-9eea-82984e870113","block_type":"box","text":"current market conditions in seven calendar days or less without the sale or disposition significantly","page_number":99,"box":{"x":116,"y":599,"width":742,"height":12}},{"id":"64df866e-9e36-4e7c-951b-617ff27927a2","block_type":"box","text":"changing the market value of the investment. Liquid investments may become illiquid after purchase by","page_number":99,"box":{"x":116,"y":614,"width":771,"height":12}},{"id":"a0a8f04c-e2b5-4137-846e-01fdf4854586","block_type":"box","text":"a Fund, particularly during periods of market turmoil. There can be no assurance that a security or","page_number":99,"box":{"x":116,"y":630,"width":733,"height":12}},{"id":"357a36ac-0191-46e4-80a3-1c9492bb2458","block_type":"box","text":"instrument that is deemed to be liquid when purchased will continue to be liquid for as long as it is held","page_number":99,"box":{"x":117,"y":645,"width":766,"height":12}},{"id":"ccfe8ad9-70fb-4af1-b7cb-2aa7a288f509","block_type":"box","text":"by a Fund, and any security or instrument held by the Fund may be deemed an illiquid investment","page_number":99,"box":{"x":117,"y":661,"width":725,"height":12}},{"id":"3548b7cd-7804-4b7f-b510-ea1ca4882cac","block_type":"box","text":"pursuant to the Fund’s liquidity risk management program. A Fund’s illiquid investments may reduce","page_number":99,"box":{"x":117,"y":676,"width":742,"height":12}},{"id":"6f676a6c-a933-4141-b265-e203f233089b","block_type":"box","text":"the returns of the Fund because it may be difficult to sell the illiquid investments at an advantageous","page_number":99,"box":{"x":116,"y":692,"width":743,"height":12}},{"id":"9d7e33bf-94b4-4870-8a06-36634c2c3380","block_type":"box","text":"time or price. In addition, if a Fund is limited in its ability to dispose of illiquid investments during","page_number":99,"box":{"x":116,"y":707,"width":708,"height":12}},{"id":"70f5d225-eda7-405d-bb7d-6b783dad1521","block_type":"box","text":"periods when shareholders are redeeming or selling their shares or the Fund’s net assets otherwise","page_number":99,"box":{"x":117,"y":723,"width":739,"height":12}},{"id":"5edada0b-9213-41bb-a290-8aa80fb96059","block_type":"box","text":"shrink, the Fund will need to dispose of liquid securities to meet redemption requests and illiquid","page_number":99,"box":{"x":116,"y":738,"width":712,"height":12}},{"id":"5447e98e-8622-481f-b6cd-e97d245de5ac","block_type":"box","text":"securities will become a larger portion of the Fund’s holdings. If illiquid investments exceed 15% of a","page_number":99,"box":{"x":116,"y":754,"width":745,"height":12}},{"id":"36022a57-d280-4bcf-bbc5-19f7c2e45491","block_type":"box","text":"Fund’s net assets, the Liquidity Rule (as defined below) and the Liquidity Program (as defined below)","page_number":99,"box":{"x":117,"y":769,"width":749,"height":12}},{"id":"0e51bf09-7ef8-42f2-a738-6684d5545d43","block_type":"box","text":"will require that certain remedial actions be taken.","page_number":99,"box":{"x":116,"y":785,"width":368,"height":12}},{"id":"53e37b2c-4ed1-4822-a752-a9dccef2121b","block_type":"box","text":"Illiquid investments may trade at a discount from","page_number":99,"box":{"x":491,"y":785,"width":358,"height":12}},{"id":"23e1b0b6-8f1f-4c44-aac6-a1c1732c5551","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the","page_number":99,"box":{"x":116,"y":800,"width":742,"height":12}},{"id":"4de04834-e907-4b84-9686-a093af5e5c90","block_type":"box","text":"ability of the Fund to dispose of its investments in a timely fashion and for a fair price as well as its","page_number":99,"box":{"x":116,"y":816,"width":728,"height":12}},{"id":"2bee8588-2d32-40d4-a952-5e314df8d560","block_type":"box","text":"ability to take advantage of market opportunities. The risks associated with illiquidity will be particularly","page_number":99,"box":{"x":116,"y":831,"width":765,"height":12}},{"id":"69a55c3e-8980-4e4d-8e99-8d0f9398906f","block_type":"box","text":"acute where a Fund’s operations require cash, such as when the Fund redeems shares or pays","page_number":99,"box":{"x":116,"y":847,"width":715,"height":12}},{"id":"fe02f694-d6d4-4bb2-baff-d8f5092f358f","block_type":"box","text":"dividends, and could result in the Fund borrowing to meet short-term cash requirements or incurring","page_number":99,"box":{"x":116,"y":862,"width":746,"height":12}},{"id":"89a0a429-9f20-421e-a559-e25ef8fd3f08","block_type":"box","text":"capital losses on the sale of illiquid investments.","page_number":99,"box":{"x":116,"y":878,"width":362,"height":12}},{"id":"73b5433d-00c8-44d5-a451-b642a35588c6","block_type":"box","text":"II-40","page_number":99,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"ea085437-4568-4bc9-9fbf-51dd717f3e34","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":99,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e1d19179-6a06-416d-8acb-41450abd118c","block_type":"box","text":"Index Funds","page_number":100,"box":{"x":116,"y":87,"width":99,"height":10}},{"id":"d5ce0087-4a21-408a-9626-ddef39f1d7ea","block_type":"box","text":".","page_number":100,"box":{"x":216,"y":95,"width":2,"height":1}},{"id":"ee74a5e5-c9f9-4bb8-8ea9-096f56fbbc0b","block_type":"box","text":"Cash Flows; Expenses.","page_number":100,"box":{"x":117,"y":111,"width":173,"height":12}},{"id":"b3c7886e-d448-4d55-83e6-5c726acf0e20","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some","page_number":100,"box":{"x":291,"y":111,"width":573,"height":12}},{"id":"d9a1e3bc-e7fb-49b7-a14c-2029e9af8322","block_type":"box","text":"extent on the Manager’s ability to manage cash flow (primarily from purchases and redemptions and","page_number":100,"box":{"x":116,"y":127,"width":749,"height":12}},{"id":"afd69e3b-73fb-4de0-8682-9d10abb6c912","block_type":"box","text":"distributions from the Fund’s investments). The Manager will make investment changes to a Fund’s","page_number":100,"box":{"x":116,"y":142,"width":742,"height":12}},{"id":"9d9660f8-ad78-460b-9900-196fa175e9bf","block_type":"box","text":"portfolio to accommodate cash flow while continuing to seek to replicate the total return of the Fund’s","page_number":100,"box":{"x":117,"y":158,"width":753,"height":12}},{"id":"822e964f-0f4f-4a21-aebb-cfcdc8c69be7","block_type":"box","text":"target index. Investors should also be aware that the investment performance of each index is a","page_number":100,"box":{"x":116,"y":173,"width":716,"height":12}},{"id":"1df08347-a51b-4ab7-8d6e-09505b3147f6","block_type":"box","text":"hypothetical number which does not take into account brokerage commissions and other transaction","page_number":100,"box":{"x":117,"y":189,"width":749,"height":12}},{"id":"a8b9d5e5-a11e-4c73-a8ab-23a061c85923","block_type":"box","text":"costs, custody and other costs of investing, and any incremental operating costs (","page_number":100,"box":{"x":116,"y":204,"width":606,"height":12}},{"id":"f10ab1bd-6b32-4eba-80e6-8707906621a3","block_type":"box","text":"e.g.","page_number":100,"box":{"x":723,"y":207,"width":26,"height":9}},{"id":"c33d6ee4-33a3-40b8-aec2-6959a4ed015b","block_type":"box","text":", transfer agency","page_number":100,"box":{"x":752,"y":204,"width":129,"height":12}},{"id":"98c59cfe-12b1-4690-84f4-76df046b4767","block_type":"box","text":"and accounting costs) that will be borne by the Funds. 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A Fund may be subject to tracking error, which is the divergence of the Fund’s","page_number":100,"box":{"x":260,"y":284,"width":586,"height":12}},{"id":"aa4c4cc6-ed63-40c7-8edd-9b6c71692df1","block_type":"box","text":"performance from that of the Underlying Index. 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MSCI is not responsible for and has not participated in the determination of","page_number":101,"box":{"x":116,"y":862,"width":767,"height":12}},{"id":"be038780-5ec2-42d4-88cb-914c0c35f4ea","block_type":"box","text":"the timing of, prices at, or quantities of shares of any Fund to be issued or in the determination or","page_number":101,"box":{"x":116,"y":878,"width":725,"height":12}},{"id":"f66ef0ba-11ec-44f5-843d-be9114f8f9fa","block_type":"box","text":"II-42","page_number":101,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"c2adbeec-42d4-4b64-8f34-b986abf93c15","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":101,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ed11ee70-7733-46c4-8927-f71fc5f28f96","block_type":"box","text":"calculation of the equation by which the shares of a Fund are redeemable for cash. 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MSCI makes no express","page_number":102,"box":{"x":116,"y":227,"width":760,"height":12}},{"id":"08d8d086-1532-428a-872b-09f94a8d6051","block_type":"box","text":"or implied warranties, and hereby expressly disclaims all warranties of merchantability or fitness for a","page_number":102,"box":{"x":116,"y":242,"width":755,"height":12}},{"id":"34d74b12-93a9-4aa8-8a8f-535fa1a24d90","block_type":"box","text":"particular purpose with respect to an MSCI Index or any data included therein. 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The Manager believes that indexed and","page_number":103,"box":{"x":116,"y":320,"width":754,"height":12}},{"id":"90d569a1-d845-4bf8-a561-d6a6d5b0a0d7","block_type":"box","text":"inverse floating obligations represent flexible portfolio management instruments for a Fund that allow","page_number":103,"box":{"x":117,"y":335,"width":751,"height":12}},{"id":"7f339571-d12a-45a6-abf7-ef164a597bb3","block_type":"box","text":"the Fund to seek potential investment rewards, hedge other portfolio positions or vary the degree of","page_number":103,"box":{"x":116,"y":351,"width":744,"height":12}},{"id":"374f7ca6-a467-4d3f-bbea-1cce5534fe1d","block_type":"box","text":"investment leverage relatively efficiently under different market conditions. A Fund may invest in","page_number":103,"box":{"x":117,"y":366,"width":716,"height":12}},{"id":"4373773e-57ba-4df0-a21b-a553a53c0765","block_type":"box","text":"indexed and inverse securities for hedging purposes or to seek to increase returns. 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Inverse floaters are securities the potential of which is inversely related","page_number":103,"box":{"x":117,"y":475,"width":768,"height":12}},{"id":"44a6234d-b977-44a6-a035-f483c345cad0","block_type":"box","text":"to changes in interest rates. In general, the return on inverse floaters will decrease when short-term","page_number":103,"box":{"x":116,"y":490,"width":743,"height":12}},{"id":"3e1e86e1-9959-4a6c-882f-036b64e576a0","block_type":"box","text":"interest rates increase and increase when short-term rates decrease. Municipal tender option bonds,","page_number":103,"box":{"x":117,"y":506,"width":751,"height":12}},{"id":"93bd42f3-f326-43ba-910b-ef0324d8b1b3","block_type":"box","text":"both taxable and tax-exempt, which may include inverse floating rate debt instruments, (including","page_number":103,"box":{"x":117,"y":521,"width":725,"height":12}},{"id":"4cd3bc9e-eeae-47cb-9ac1-6d1c414e18e2","block_type":"box","text":"residual interests thereon) are excluded from this 10% limitation.","page_number":103,"box":{"x":117,"y":537,"width":483,"height":12}},{"id":"0d15a62c-acdd-45ff-b7e8-c027770412f4","block_type":"box","text":"Inflation Risk.","page_number":103,"box":{"x":116,"y":568,"width":109,"height":9}},{"id":"f0f70347-d7db-4ab8-bcef-f6653d5d4fe4","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the","page_number":103,"box":{"x":226,"y":568,"width":627,"height":12}},{"id":"c5bd8979-b9df-4b21-8724-942a6b48cbaf","block_type":"box","text":"present value of assets or income from investments will be less in the future as inflation decreases the","page_number":103,"box":{"x":117,"y":583,"width":763,"height":12}},{"id":"0914c404-75af-4d25-abbc-1bf59888c571","block_type":"box","text":"value of money. As inflation increases, the present value of a Fund’s assets can decline as can the","page_number":103,"box":{"x":116,"y":599,"width":739,"height":12}},{"id":"606996d0-f4d6-499b-9be1-8c018f3804fd","block_type":"box","text":"value of a Fund’s distributions. Inflation rates may change frequently and significantly due to a number","page_number":103,"box":{"x":116,"y":614,"width":764,"height":12}},{"id":"ea7f3f46-55c2-4462-9470-c1475196a66e","block_type":"box","text":"of potential factors, including, among others, unexpected economic shifts or changes in fiscal or","page_number":103,"box":{"x":116,"y":630,"width":716,"height":12}},{"id":"54eaba1e-59ce-4248-b110-3273d63724b2","block_type":"box","text":"monetary policies.","page_number":103,"box":{"x":117,"y":645,"width":139,"height":12}},{"id":"602dddb4-ef63-4933-86f6-0fd76647365a","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":103,"box":{"x":116,"y":676,"width":275,"height":12}},{"id":"203ad38e-1b51-4ab9-9783-86b6e337b1eb","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued","page_number":103,"box":{"x":397,"y":676,"width":451,"height":12}},{"id":"b66b764c-ee0e-43eb-bfee-9484dc8ed3fc","block_type":"box","text":"stocks trade in the secondary market are affected by the performance of the stock market overall. If","page_number":103,"box":{"x":116,"y":692,"width":739,"height":12}},{"id":"c1bb8a0f-6dc0-4c89-990d-a0582e611acd","block_type":"box","text":"IPOs are brought to the market, availability may be limited and a Fund may not be able to buy any","page_number":103,"box":{"x":117,"y":707,"width":727,"height":12}},{"id":"37bb002d-bffb-44de-9d46-29913ff038ac","block_type":"box","text":"shares at the offering price, or if it is able to buy shares, it may not be able to buy as many shares at","page_number":103,"box":{"x":116,"y":723,"width":744,"height":12}},{"id":"5c118209-73e4-4d7d-872d-c7bb78224fae","block_type":"box","text":"the offering price as it would like. In addition, the prices of securities involved in IPOs are often subject","page_number":103,"box":{"x":116,"y":738,"width":758,"height":12}},{"id":"339f004e-ef7c-43dc-b495-b7389e822082","block_type":"box","text":"to greater and more unpredictable price changes than more established stocks. IPOs have the","page_number":103,"box":{"x":116,"y":754,"width":701,"height":12}},{"id":"12278b9d-6b02-4052-b9fb-85530b955ff4","block_type":"box","text":"potential to produce substantial gains. A Fund may hold shares from an IPO for only a short period of","page_number":103,"box":{"x":117,"y":769,"width":751,"height":12}},{"id":"23650a4a-e113-4b7a-862f-da0641cd3405","block_type":"box","text":"time given possible price volatility. This may result in increased portfolio turnover and expenses, such","page_number":103,"box":{"x":116,"y":785,"width":752,"height":12}},{"id":"df2da6b9-990f-4b53-b5e8-e8ecc77a9d93","block_type":"box","text":"as commissions and transaction costs, and potentially result in taxable gains that the Fund will","page_number":103,"box":{"x":116,"y":800,"width":699,"height":12}},{"id":"57b9e307-3c30-4b59-af84-ad7f6cc5d783","block_type":"box","text":"subsequently distribute to shareholders. There is no assurance that any Fund will have access to","page_number":103,"box":{"x":116,"y":816,"width":720,"height":12}},{"id":"b948e95d-d29c-432a-a4bd-275410402d3e","block_type":"box","text":"profitable IPOs and therefore investors should not rely on any past gains from IPOs as an indication of","page_number":103,"box":{"x":117,"y":831,"width":763,"height":12}},{"id":"1151b1b3-77ea-4c1d-ae43-6c785218a6d6","block_type":"box","text":"future performance. The investment performance of a Fund during periods when it is unable to invest","page_number":103,"box":{"x":116,"y":847,"width":755,"height":12}},{"id":"64492293-bed0-4764-80c0-aba57384adff","block_type":"box","text":"significantly or at all in IPOs may be lower than during periods when it is able to do so. In addition, as a","page_number":103,"box":{"x":116,"y":862,"width":769,"height":12}},{"id":"1dd535ad-28b6-4b80-b059-8b2b118d1288","block_type":"box","text":"Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":103,"box":{"x":117,"y":878,"width":721,"height":12}},{"id":"54793912-3fba-4310-8fe5-b9364eb0718d","block_type":"box","text":"II-44","page_number":103,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"27981718-fc64-42d5-808e-fede7452812c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":103,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d02b22c1-74cb-4dc3-8e5c-d9c3799b0f77","block_type":"box","text":"issued in IPOs are subject to many of the same risks as investing in companies with smaller market","page_number":104,"box":{"x":117,"y":87,"width":743,"height":12}},{"id":"26a64ae9-e325-4595-9461-3a90f2e6dbb3","block_type":"box","text":"capitalizations. Securities issued in IPOs have no trading history, and information about the companies","page_number":104,"box":{"x":116,"y":102,"width":768,"height":13}},{"id":"a96beca7-d135-4164-9ea9-72bf3b3ebd93","block_type":"box","text":"may be available for very limited periods.","page_number":104,"box":{"x":117,"y":118,"width":308,"height":12}},{"id":"83086049-0cb3-4f19-b22a-2fda370ae29a","block_type":"box","text":"Investment in Emerging Markets.","page_number":104,"box":{"x":116,"y":157,"width":268,"height":12}},{"id":"745a699d-3bb3-47d7-80e8-615c27f554c5","block_type":"box","text":"General","page_number":104,"box":{"x":117,"y":180,"width":59,"height":10}},{"id":"41f4f6a8-2b59-4480-8d73-d5346c022e07","block_type":"box","text":".","page_number":104,"box":{"x":177,"y":188,"width":8,"height":1}},{"id":"3dbe916c-2f02-4a58-b4b3-42c07acf20d1","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging","page_number":104,"box":{"x":117,"y":211,"width":727,"height":12}},{"id":"0063587f-440f-4ef2-b56f-51ae85bf9f2d","block_type":"box","text":"capital markets. Unless otherwise provided in a Fund’s Prospectus, a country with an emerging capital","page_number":104,"box":{"x":116,"y":227,"width":765,"height":12}},{"id":"4a46b8d1-b8b7-43ef-a1f3-9d8af3e84c5f","block_type":"box","text":"market is any country that is (i) generally recognized to be an emerging market country by the","page_number":104,"box":{"x":117,"y":242,"width":700,"height":12}},{"id":"4fa886d1-d179-4034-8304-ceb9cde28e66","block_type":"box","text":"international financial community, such as the International Finance Corporation, or","page_number":104,"box":{"x":117,"y":258,"width":617,"height":12}},{"id":"c319b990-8b30-4361-9b74-5c063e0bf239","block_type":"box","text":"determined by the","page_number":104,"box":{"x":739,"y":258,"width":139,"height":12}},{"id":"76cf5c63-ec00-4a4b-b409-4b01d1b956a2","block_type":"box","text":"World Bank to have a low, middle or middle upper income economy; (ii) classified by the United","page_number":104,"box":{"x":116,"y":273,"width":714,"height":12}},{"id":"85733344-97c7-4ebc-b262-9c863922088c","block_type":"box","text":"Nations or its authorities to be developing; and/or (iii) included in a broad-based index that is generally","page_number":104,"box":{"x":117,"y":289,"width":762,"height":12}},{"id":"7ff29a3e-47bc-4c20-9094-41542d14e656","block_type":"box","text":"representative of emerging markets. Countries with emerging markets can be found in regions such as","page_number":104,"box":{"x":117,"y":304,"width":766,"height":12}},{"id":"f0e05d22-ab56-45b2-a9ed-3ed0bed8fbba","block_type":"box","text":"Asia, Latin America, Eastern Europe and Africa.","page_number":104,"box":{"x":116,"y":320,"width":361,"height":12}},{"id":"31a88056-0468-4094-bd17-3a03d925a578","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve","page_number":104,"box":{"x":117,"y":351,"width":743,"height":12}},{"id":"20372782-f111-485a-85e4-b1f1d006995c","block_type":"box","text":"certain additional risks that do not generally apply to investments in securities of issuers in more","page_number":104,"box":{"x":116,"y":366,"width":717,"height":12}},{"id":"2d6479cd-da3f-4b94-987d-71516ae5233e","block_type":"box","text":"developed capital markets, such as (i) low or non-existent trading volume, resulting in market illiquidity","page_number":104,"box":{"x":116,"y":382,"width":763,"height":12}},{"id":"a32040f2-d5a3-4c0a-b2ef-bb2c3f3ff8dd","block_type":"box","text":"and increased volatility in prices for such securities, as compared to securities of comparable issuers in","page_number":104,"box":{"x":116,"y":397,"width":771,"height":12}},{"id":"a66517c7-16b5-4b82-a99a-bfbe599e7540","block_type":"box","text":"more developed capital markets; (ii) uncertain national policies and social, political and economic","page_number":104,"box":{"x":117,"y":413,"width":723,"height":12}},{"id":"26c6bf2a-baca-4b61-a756-f5acc291c99b","block_type":"box","text":"instability, increasing the potential for expropriation of assets, confiscatory taxation, high rates of","page_number":104,"box":{"x":117,"y":428,"width":718,"height":12}},{"id":"471221a0-79e9-4e6b-a0d2-6ef6881f1a06","block_type":"box","text":"inflation or unfavorable diplomatic developments; (iii) possible fluctuations in exchange rates, differing","page_number":104,"box":{"x":117,"y":444,"width":758,"height":12}},{"id":"5f501398-a857-4c6d-bd1a-8465ab0bc0de","block_type":"box","text":"legal systems and the existence or possible imposition of exchange controls, custodial restrictions or","page_number":104,"box":{"x":117,"y":459,"width":750,"height":12}},{"id":"59ff10cc-b886-41ac-a2ca-6a5ce71526ee","block_type":"box","text":"other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":104,"box":{"x":116,"y":475,"width":741,"height":12}},{"id":"123a638a-aa9a-4cb5-a29f-512430663e96","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers","page_number":104,"box":{"x":117,"y":490,"width":754,"height":12}},{"id":"003edc6a-a8e2-4720-bc56-b50840f26eee","block_type":"box","text":"or industries deemed sensitive to national interests; and (v) the lack or relatively early development of","page_number":104,"box":{"x":116,"y":506,"width":759,"height":12}},{"id":"b662ca32-590c-4818-ab47-2bb386b852e7","block_type":"box","text":"legal structures governing private and foreign investments and private property. In addition to","page_number":104,"box":{"x":117,"y":521,"width":695,"height":12}},{"id":"fbc3e212-c71b-43fc-80f1-51ff70b5e177","block_type":"box","text":"withholding taxes on investment income, some countries with emerging markets may impose","page_number":104,"box":{"x":116,"y":537,"width":695,"height":12}},{"id":"f5027c00-09a1-421d-b997-bacb6ec4aefa","block_type":"box","text":"differential capital gains taxes on foreign investors.","page_number":104,"box":{"x":116,"y":552,"width":381,"height":12}},{"id":"a16f91c0-f867-4fa7-bab5-7b42a7eb0f5a","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant","page_number":104,"box":{"x":117,"y":583,"width":699,"height":12}},{"id":"c2a30e3e-5ea7-422a-8dcf-a1f63fe9951e","block_type":"box","text":"evolution and rapid development, and these countries may lack the social, political and economic","page_number":104,"box":{"x":116,"y":599,"width":726,"height":12}},{"id":"8398d907-31bd-43d8-a4c4-d400e5b94c62","block_type":"box","text":"stability characteristic of more developed countries. In such a dynamic environment, there can be no","page_number":104,"box":{"x":116,"y":614,"width":750,"height":12}},{"id":"d1659d0e-8d00-4556-a2da-db1d98a202a4","block_type":"box","text":"assurance that any or all of these capital markets will continue to present viable investment","page_number":104,"box":{"x":116,"y":630,"width":681,"height":12}},{"id":"64c4ecb9-d766-4eb4-9bc5-929c41d246cc","block_type":"box","text":"opportunities for a Fund. In the past, governments of such nations have expropriated substantial","page_number":104,"box":{"x":116,"y":645,"width":719,"height":12}},{"id":"088bf1dd-61ab-4823-b240-708c43d79bcc","block_type":"box","text":"amounts of private property, and most claims of the property owners have never been fully settled.","page_number":104,"box":{"x":116,"y":661,"width":730,"height":12}},{"id":"255edddc-1cc9-4d5c-b3a4-bc237b1ca578","block_type":"box","text":"There is no assurance that such expropriations will not reoccur. In such an event, it is possible that a","page_number":104,"box":{"x":116,"y":676,"width":747,"height":12}},{"id":"109a586d-56d2-4248-9bd1-76c6aadcd5ee","block_type":"box","text":"Fund could lose the entire value of its investments in the affected market. As a result the risks","page_number":104,"box":{"x":117,"y":692,"width":694,"height":9}},{"id":"3d0c899c-e623-490c-b1ae-4aa5db50aa4e","block_type":"box","text":"described above, including the risks of nationalization or expropriation of assets, may be heightened. In","page_number":104,"box":{"x":116,"y":707,"width":766,"height":12}},{"id":"631e55e5-a26b-4762-b43f-0f162834f106","block_type":"box","text":"addition, unanticipated political or social developments may affect the value of investments in these","page_number":104,"box":{"x":116,"y":723,"width":737,"height":12}},{"id":"5fc456b9-9fa7-487d-80f0-f364e494e294","block_type":"box","text":"countries and the availability to a Fund of additional investments. The small size and inexperience of","page_number":104,"box":{"x":116,"y":738,"width":746,"height":12}},{"id":"75fc52d9-af7e-4718-86e0-f9c886a618e8","block_type":"box","text":"the securities markets in certain of these countries and the limited volume of trading in securities in","page_number":104,"box":{"x":116,"y":754,"width":732,"height":12}},{"id":"21ccecd9-9073-4e3b-971c-39337ca92768","block_type":"box","text":"these countries may make investments in the countries illiquid and more volatile than investments in","page_number":104,"box":{"x":116,"y":769,"width":742,"height":12}},{"id":"60cd9f86-d4ae-4c1a-b2d0-29cfec7a794e","block_type":"box","text":"more established markets.","page_number":104,"box":{"x":117,"y":785,"width":195,"height":9}},{"id":"939ddb14-c84a-4410-8c11-7f2556d75ce8","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be","page_number":104,"box":{"x":116,"y":816,"width":765,"height":12}},{"id":"5b2218bd-0f82-4b5b-9a26-3873cecb0857","block_type":"box","text":"available about issuers in more developed capital markets, and such issuers may not be subject to","page_number":104,"box":{"x":116,"y":831,"width":737,"height":12}},{"id":"07dccc09-f647-45c5-b9fe-4c31bbd3b39f","block_type":"box","text":"accounting, auditing and financial reporting standards and requirements comparable to those to which","page_number":104,"box":{"x":116,"y":847,"width":762,"height":12}},{"id":"9d0233f1-db2c-4cc7-8183-620e6de4bc5e","block_type":"box","text":"U.S. companies are subject. In certain countries with emerging capital markets, reporting standards","page_number":104,"box":{"x":117,"y":862,"width":743,"height":12}},{"id":"72374229-93f5-4761-a998-fff73903f2df","block_type":"box","text":"vary widely. As a result, traditional investment measurements used in the United States, such as price/","page_number":104,"box":{"x":116,"y":878,"width":762,"height":12}},{"id":"678c9027-2638-42fb-b143-a5d6d097d752","block_type":"box","text":"II-45","page_number":104,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"21fbbfcf-eaeb-44ee-8133-d86baa01e143","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":104,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4663696a-c12a-4bd0-82bb-33b379cf298f","block_type":"box","text":"earnings ratios, may not be applicable. Emerging market securities may be substantially less liquid","page_number":105,"box":{"x":116,"y":87,"width":737,"height":12}},{"id":"8116baa2-32b6-45eb-83b5-e1d96f06ef09","block_type":"box","text":"than, and more volatile than, those of mature markets, and company shares may be held by a limited","page_number":105,"box":{"x":116,"y":102,"width":755,"height":13}},{"id":"bcf209c1-05e8-46f2-94d9-06e3e814ff7a","block_type":"box","text":"number of persons. This may adversely affect the timing and pricing of the Fund’s acquisition or","page_number":105,"box":{"x":117,"y":118,"width":715,"height":12}},{"id":"af5becf3-13d6-40d4-9514-58fc6708f3e8","block_type":"box","text":"disposal of securities.","page_number":105,"box":{"x":116,"y":134,"width":165,"height":11}},{"id":"3c76c30f-84ca-4577-bddd-c3658da12b02","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks","page_number":105,"box":{"x":117,"y":165,"width":746,"height":12}},{"id":"bba13046-b952-4a12-8f7e-307f6a2db9d0","block_type":"box","text":"than those in developed markets, in part because a Fund will need to use brokers and counterparties","page_number":105,"box":{"x":116,"y":180,"width":755,"height":12}},{"id":"3c7c1971-0989-4e59-8983-1161bfb32f3d","block_type":"box","text":"that are less well capitalized, and custody and registration of assets in some countries may be","page_number":105,"box":{"x":116,"y":196,"width":703,"height":12}},{"id":"4a99a773-bb37-4c2e-a0c8-611aecf5ca6c","block_type":"box","text":"unreliable. The possibility of fraud, negligence, undue influence being exerted by the issuer or refusal","page_number":105,"box":{"x":117,"y":211,"width":754,"height":12}},{"id":"f7111d1d-1c95-4367-9ea7-0835a9f97c10","block_type":"box","text":"to recognize ownership exists in some emerging markets, and, along with other factors, could result in","page_number":105,"box":{"x":116,"y":227,"width":762,"height":12}},{"id":"aa3fee9d-a0ed-4aa4-a1e1-489e5280d999","block_type":"box","text":"ownership registration being completely lost. A Fund would absorb any loss resulting from such","page_number":105,"box":{"x":116,"y":242,"width":712,"height":12}},{"id":"2367c986-7f72-46da-a27e-2b525eb50c63","block_type":"box","text":"registration problems and may have no successful claim for compensation.","page_number":105,"box":{"x":117,"y":258,"width":560,"height":12}},{"id":"ffbc5442-aa58-47ae-9456-90f5e9d422f7","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging","page_number":105,"box":{"x":117,"y":289,"width":755,"height":12}},{"id":"4faee431-39a7-4bdb-97bd-a9347f6e5b6a","block_type":"box","text":"market countries may be on either a currency hedged or unhedged basis, and the Funds may hold","page_number":105,"box":{"x":117,"y":304,"width":735,"height":12}},{"id":"bcb6017e-4fd8-42c7-94c3-c7243b14ed6e","block_type":"box","text":"from time to time various foreign currencies pending investment or conversion into U.S. dollars. Some","page_number":105,"box":{"x":116,"y":320,"width":761,"height":12}},{"id":"faf9eda6-50e1-4e67-b5d7-f36d23531d57","block_type":"box","text":"of these instruments may have the characteristics of futures contracts. In addition, certain Funds may","page_number":105,"box":{"x":116,"y":335,"width":757,"height":12}},{"id":"bef65237-44af-41db-8cf5-8c3f0ca8b2eb","block_type":"box","text":"engage in foreign currency exchange transactions to seek to protect against changes in the level of","page_number":105,"box":{"x":116,"y":351,"width":742,"height":12}},{"id":"02d2798a-0296-451f-ac13-e3aeaefb14a5","block_type":"box","text":"future exchange rates which would adversely affect the Fund’s performance. These investments and","page_number":105,"box":{"x":116,"y":366,"width":752,"height":12}},{"id":"41bb4d1e-f85e-4c83-918b-1ba7d8207001","block_type":"box","text":"transactions involving foreign securities, currencies, options (including options that relate to foreign","page_number":105,"box":{"x":116,"y":382,"width":738,"height":12}},{"id":"ca325b46-c953-4be4-a5a6-1fadc545e88b","block_type":"box","text":"currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":105,"box":{"x":116,"y":397,"width":619,"height":12}},{"id":"660cd2e5-a68d-4e1d-9ba3-acbae6c001b7","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":105,"box":{"x":116,"y":428,"width":328,"height":12}},{"id":"01e37c54-6bd8-4ae6-8d8a-387fc9a4d3bd","block_type":"box","text":"In addition to the risks of foreign investing and the risks of","page_number":105,"box":{"x":445,"y":428,"width":432,"height":12}},{"id":"60da2a10-d337-46dc-bb95-2887d960a62c","block_type":"box","text":"investing in developing markets, the developing market Asia-Pacific countries in which a Fund may","page_number":105,"box":{"x":117,"y":444,"width":738,"height":12}},{"id":"471654ef-7b05-4034-a9f9-1198f3c794e8","block_type":"box","text":"invest are subject to certain additional or specific risks. Certain Funds may make substantial","page_number":105,"box":{"x":117,"y":459,"width":687,"height":12}},{"id":"3c729226-50fb-4287-bf12-46e934925e94","block_type":"box","text":"investments in Asia-Pacific countries. In many of these markets, there is a high concentration of market","page_number":105,"box":{"x":117,"y":475,"width":771,"height":12}},{"id":"5a013dca-91ec-4d16-818e-8d4e7c13fa68","block_type":"box","text":"capitalization and trading volume in a small number of issuers representing a limited number of","page_number":105,"box":{"x":116,"y":490,"width":710,"height":12}},{"id":"e99ded83-e5d2-421f-93da-152ce67405b3","block_type":"box","text":"industries, as well as a high concentration of investors and financial intermediaries. Many of these","page_number":105,"box":{"x":117,"y":506,"width":730,"height":12}},{"id":"53f15731-3bdf-4940-bc43-8efb1dca6968","block_type":"box","text":"markets also may be affected by developments with respect to more established markets in the region","page_number":105,"box":{"x":117,"y":521,"width":763,"height":12}},{"id":"824421e8-e113-46b1-aea8-97c165cd5680","block_type":"box","text":"such as in Japan and Hong Kong. Brokers in developing market Asia-Pacific countries typically are","page_number":105,"box":{"x":116,"y":537,"width":739,"height":12}},{"id":"629a35b2-6bd1-489a-b3a8-d25c3e232915","block_type":"box","text":"fewer in number and less well capitalized than brokers in the United States. These factors, combined","page_number":105,"box":{"x":116,"y":552,"width":754,"height":12}},{"id":"caeaab08-13d0-4ea7-bed9-57baed3b53e7","block_type":"box","text":"with the U.S. regulatory requirements for open-end investment companies and the restrictions on","page_number":105,"box":{"x":116,"y":568,"width":725,"height":12}},{"id":"dca12b88-40a5-492c-ac41-f683468da6e6","block_type":"box","text":"foreign investment discussed below, result in potentially fewer investment opportunities for a Fund and","page_number":105,"box":{"x":116,"y":583,"width":766,"height":12}},{"id":"2a4a07db-8517-430f-a4d8-d9c1b5c3ddef","block_type":"box","text":"may have an adverse impact on the investment performance of the Fund.","page_number":105,"box":{"x":117,"y":599,"width":550,"height":12}},{"id":"176ac032-2056-435f-b5e7-d21682dbd1aa","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic,","page_number":105,"box":{"x":117,"y":630,"width":765,"height":12}},{"id":"0a737a73-dde2-4409-8246-061a6fe0f859","block_type":"box","text":"political and social instability than is the case in the United States and Western European countries.","page_number":105,"box":{"x":117,"y":645,"width":743,"height":12}},{"id":"c7ab5906-2925-42a6-b592-1fdbed686c4c","block_type":"box","text":"Such instability may result from, among other things: (i) authoritarian governments or military","page_number":105,"box":{"x":116,"y":661,"width":688,"height":12}},{"id":"c60c2c8b-ef50-4632-a55b-8d4361453d4b","block_type":"box","text":"involvement in political and economic decision-making, including changes in government through","page_number":105,"box":{"x":117,"y":676,"width":718,"height":12}},{"id":"3aecc432-6078-4055-ad18-d4f8b38dcc3c","block_type":"box","text":"extra-constitutional means; (ii) popular unrest associated with demands for improved political,","page_number":105,"box":{"x":116,"y":692,"width":692,"height":12}},{"id":"18ca27a1-cada-4319-a3a8-35d9e887f3bb","block_type":"box","text":"economic and social conditions; (iii) internal insurgencies; (iv) hostile relations with neighboring","page_number":105,"box":{"x":116,"y":707,"width":704,"height":12}},{"id":"665c9d0a-bdcb-4c5c-916e-bfec74a99a00","block_type":"box","text":"countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of such","page_number":105,"box":{"x":116,"y":723,"width":763,"height":12}},{"id":"17cc8071-7f21-40fb-8df5-7ca3a13a49d0","block_type":"box","text":"countries, such as Indonesia, have a substantial role in regulating and supervising the economy.","page_number":105,"box":{"x":116,"y":738,"width":714,"height":12}},{"id":"8a078dc4-5b45-4b75-886d-62aba51e7803","block_type":"box","text":"Another risk common to most such countries is that the economy is heavily export oriented and,","page_number":105,"box":{"x":116,"y":754,"width":710,"height":12}},{"id":"dafadb46-24bd-4267-a4b7-50e3fb05f0c8","block_type":"box","text":"accordingly, is dependent upon international trade. The existence of overburdened infrastructure and","page_number":105,"box":{"x":116,"y":769,"width":748,"height":12}},{"id":"f9908573-4e3c-4c26-bce5-cfeab95a2611","block_type":"box","text":"obsolete financial systems also presents risks in certain countries, as do environmental problems.","page_number":105,"box":{"x":116,"y":785,"width":724,"height":12}},{"id":"042aba4e-8e92-4116-bdf8-526dccbb1fab","block_type":"box","text":"Certain economies also depend to a significant degree upon exports of primary commodities and,","page_number":105,"box":{"x":117,"y":800,"width":721,"height":12}},{"id":"fb77bde8-15f2-41af-b0ce-f4093ccbd2a3","block_type":"box","text":"therefore, are vulnerable to changes in commodity prices that, in turn, may be affected by a variety of","page_number":105,"box":{"x":116,"y":816,"width":752,"height":12}},{"id":"763433c6-3223-4cf3-9f1e-41ef66967558","block_type":"box","text":"factors.","page_number":105,"box":{"x":116,"y":831,"width":60,"height":10}},{"id":"f2256c34-89cc-457e-bb3a-8237c5218a4f","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse","page_number":105,"box":{"x":116,"y":862,"width":722,"height":12}},{"id":"ce60b277-8260-45ab-8110-9fa3df334d2d","block_type":"box","text":"impact on the Fund. For example, while the potential liability of a shareholder in a U.S. corporation with","page_number":105,"box":{"x":117,"y":878,"width":769,"height":12}},{"id":"c8593ad7-8288-408e-958b-048f56daf730","block_type":"box","text":"II-46","page_number":105,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"3481df66-98d8-40cb-9a6a-46445a93396b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":105,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"5d39d0ee-f12e-485c-8689-60ad19211482","block_type":"box","text":"respect to acts of the corporation is generally limited to the amount of the shareholder’s investment, the","page_number":106,"box":{"x":117,"y":87,"width":771,"height":12}},{"id":"92e6e716-ee98-4a39-b8ee-8a7d00e8fbaf","block_type":"box","text":"notion of limited liability is less clear in certain emerging market Asia-Pacific countries. Similarly, the","page_number":106,"box":{"x":117,"y":102,"width":744,"height":13}},{"id":"43143662-aad3-4ae4-8438-01cdb5976fb9","block_type":"box","text":"rights of investors in developing market Asia-Pacific companies may be more limited than those of","page_number":106,"box":{"x":117,"y":118,"width":732,"height":12}},{"id":"8ebe25a1-f5fe-4c24-aaf4-9038f18f5258","block_type":"box","text":"shareholders of U.S. corporations. It may be difficult or impossible to obtain and/or enforce a judgment","page_number":106,"box":{"x":116,"y":134,"width":765,"height":12}},{"id":"daea0aa5-0b42-44eb-bb70-17c3f84e8e17","block_type":"box","text":"in a developing market Asia-Pacific country.","page_number":106,"box":{"x":117,"y":149,"width":330,"height":12}},{"id":"d8bb2de2-8722-4321-a7aa-a8528cb2077d","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to","page_number":106,"box":{"x":117,"y":180,"width":714,"height":12}},{"id":"54922e97-bf18-4173-be91-f3174f353030","block_type":"box","text":"exercise substantial influence over many aspects of the private sector. In certain cases, the","page_number":106,"box":{"x":116,"y":196,"width":683,"height":12}},{"id":"78a75446-9746-4179-bc6a-1cc71e094833","block_type":"box","text":"government owns or controls many companies, including the largest in the country. Accordingly,","page_number":106,"box":{"x":116,"y":211,"width":718,"height":12}},{"id":"b61f76c6-53d2-4507-9496-39a6a54f4f1b","block_type":"box","text":"government actions in the future could have a significant effect on economic conditions in developing","page_number":106,"box":{"x":116,"y":227,"width":755,"height":12}},{"id":"a46a6d62-19ce-4a22-9644-ff3f2c693ad3","block_type":"box","text":"market Asia-Pacific countries, which could affect private sector companies and a Fund itself, as well as","page_number":106,"box":{"x":117,"y":242,"width":768,"height":12}},{"id":"482a0224-20e2-4477-8370-826715adc9e1","block_type":"box","text":"the value of securities in the Fund’s portfolio. In addition, economic statistics of developing market","page_number":106,"box":{"x":116,"y":258,"width":731,"height":12}},{"id":"b9288af0-5a39-4665-9930-ba3f61b2c122","block_type":"box","text":"Asia-Pacific countries may be less reliable than economic statistics of more developed nations.","page_number":106,"box":{"x":116,"y":273,"width":710,"height":12}},{"id":"b3d40b9d-0363-4df1-b69a-281d891f26af","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific","page_number":106,"box":{"x":117,"y":304,"width":741,"height":12}},{"id":"eb540251-0898-4ceb-8c06-2392e99bd276","block_type":"box","text":"issuers and the possibility that such issuers may not be subject to the same accounting, auditing and","page_number":106,"box":{"x":117,"y":320,"width":752,"height":12}},{"id":"0b3093e0-e562-4871-a18f-bdeaf32cb977","block_type":"box","text":"financial reporting standards as U.S. companies, inflation accounting rules in some developing market","page_number":106,"box":{"x":116,"y":335,"width":762,"height":12}},{"id":"431e0e62-72b9-46f5-a153-bb5d4133af5e","block_type":"box","text":"Asia-Pacific countries require companies that keep accounting records in the local currency, for both","page_number":106,"box":{"x":116,"y":351,"width":750,"height":12}},{"id":"d8d5b04e-fd95-4221-85eb-7203587abcd5","block_type":"box","text":"tax and accounting purposes, to restate certain assets and liabilities on the company’s balance sheet","page_number":106,"box":{"x":116,"y":366,"width":755,"height":12}},{"id":"fb461e85-ca22-4fca-b855-a2132ce200c6","block_type":"box","text":"in order to express items in terms of currency of constant purchasing power. Inflation accounting may","page_number":106,"box":{"x":117,"y":382,"width":756,"height":12}},{"id":"d490953f-9373-47e7-9fcd-cdf18be8336e","block_type":"box","text":"indirectly generate losses or profits for certain developing market Asia-Pacific companies.","page_number":106,"box":{"x":117,"y":397,"width":669,"height":12}},{"id":"ff77c82a-fe40-4138-b67a-57f1f9b007d5","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia","page_number":106,"box":{"x":116,"y":428,"width":762,"height":12}},{"id":"9f7fbb84-152d-4616-bda3-b9bb22f5c7c2","block_type":"box","text":"Pacific countries, which may result in the Fund incurring additional costs and delays in providing","page_number":106,"box":{"x":117,"y":444,"width":716,"height":12}},{"id":"0d55ebaf-21f1-4d01-ac73-bd1eaf072a4b","block_type":"box","text":"transportation and custody services for such securities outside such countries.","page_number":106,"box":{"x":116,"y":459,"width":586,"height":12}},{"id":"b8fc382e-9336-4469-a3b0-b3c9a8ac33f8","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially","page_number":106,"box":{"x":117,"y":490,"width":738,"height":12}},{"id":"8461a197-b4fb-4c9f-b907-e033c067e36f","block_type":"box","text":"large debtors to commercial banks and foreign governments.","page_number":106,"box":{"x":117,"y":506,"width":456,"height":12}},{"id":"419cc194-986c-4272-94dd-62ee61f932dc","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and","page_number":106,"box":{"x":117,"y":537,"width":705,"height":12}},{"id":"dcc6fd1c-37b6-409c-a8e0-85395f2ffc65","block_type":"box","text":"negative impact on a Fund’s investment portfolio and, in the longer term, could impair the ability of","page_number":106,"box":{"x":117,"y":552,"width":732,"height":12}},{"id":"8ecbae6b-3155-4762-a9a2-d47de849427a","block_type":"box","text":"issuers in which the Fund invests to conduct their businesses in the manner normally conducted.","page_number":106,"box":{"x":117,"y":568,"width":722,"height":12}},{"id":"f54d4650-29ce-46db-9a26-61143aea1f85","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may","page_number":106,"box":{"x":117,"y":599,"width":766,"height":12}},{"id":"1eb80add-61fb-43d3-9b61-0feec05e37fe","block_type":"box","text":"not be practicable or appropriate to invest in a particular developing Asia-Pacific country. A Fund may","page_number":106,"box":{"x":117,"y":614,"width":757,"height":12}},{"id":"282178fa-5aa6-4f64-a1f0-1c42a93a88ac","block_type":"box","text":"invest in countries in which foreign investors, including management of the Fund, have had no or","page_number":106,"box":{"x":117,"y":630,"width":722,"height":12}},{"id":"b122a3e8-8c6a-44fc-bc20-113bb22bd86a","block_type":"box","text":"limited prior experience.","page_number":106,"box":{"x":117,"y":645,"width":182,"height":12}},{"id":"c91b0291-b9be-4991-abfd-809ae14fb4a5","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":106,"box":{"x":116,"y":676,"width":458,"height":12}},{"id":"424e53bd-afc4-4102-ab39-cce66aa57d9b","block_type":"box","text":"Some developing Asia-Pacific countries","page_number":106,"box":{"x":581,"y":676,"width":294,"height":12}},{"id":"5103e62e-02c8-4244-8d0e-ce45ace5d7ad","block_type":"box","text":"prohibit or impose substantial restrictions on investments in their capital markets, particularly their","page_number":106,"box":{"x":117,"y":692,"width":723,"height":12}},{"id":"5df39c7d-60b4-4ee3-aa31-83e48e23bc4f","block_type":"box","text":"equity markets, by foreign entities such as a Fund. As illustrations, certain countries may require","page_number":106,"box":{"x":116,"y":707,"width":714,"height":12}},{"id":"69303333-9ba7-4256-b4b6-182f05860db4","block_type":"box","text":"governmental approval prior to investments by foreign persons or limit the amount of investment by","page_number":106,"box":{"x":116,"y":723,"width":736,"height":12}},{"id":"c80ea5a5-3d0b-4182-9957-5bef4c052f41","block_type":"box","text":"foreign persons in a particular company or limit the investment by foreign persons to only a specific","page_number":106,"box":{"x":116,"y":738,"width":735,"height":12}},{"id":"ae2fc426-7aa4-47b1-9b46-35845be7be41","block_type":"box","text":"class of securities of a company which may have less advantageous terms (including price and","page_number":106,"box":{"x":116,"y":754,"width":705,"height":12}},{"id":"39dcf44c-6277-4bad-b68a-cddbeafc3990","block_type":"box","text":"shareholder rights) than securities of the company available for purchase by nationals. There can be","page_number":106,"box":{"x":116,"y":769,"width":745,"height":12}},{"id":"92d27d14-b687-4918-b1b7-a77bae10a2b0","block_type":"box","text":"no assurance that a Fund will be able to obtain required governmental approvals in a timely manner. In","page_number":106,"box":{"x":117,"y":785,"width":762,"height":12}},{"id":"aa1dc901-056d-4a1a-807b-57fc0c4389e7","block_type":"box","text":"addition, changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of","page_number":106,"box":{"x":116,"y":800,"width":765,"height":12}},{"id":"24328230-ec44-41c5-9241-a55fb41ce50c","block_type":"box","text":"such securities may have an adverse effect on the value of such shares. Certain countries may restrict","page_number":106,"box":{"x":116,"y":816,"width":761,"height":12}},{"id":"01e3e6ec-3072-4028-814a-254a844033df","block_type":"box","text":"investment opportunities in issuers or industries deemed important to national interests.","page_number":106,"box":{"x":117,"y":831,"width":654,"height":12}},{"id":"20b2b2e7-67cd-400d-9f92-a862fc4f3a37","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific","page_number":106,"box":{"x":116,"y":862,"width":729,"height":12}},{"id":"47f02b63-7014-47e3-9b49-320e7dcdb878","block_type":"box","text":"countries, as well as limitations on such investments, also may have an adverse impact on the","page_number":106,"box":{"x":116,"y":878,"width":705,"height":12}},{"id":"a4343aee-f58a-4dd1-8d3a-5b61e76c332a","block_type":"box","text":"II-47","page_number":106,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"c3a01a6b-708a-478c-9252-b2fdfe9bec32","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":106,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"73a174b6-d378-43b6-a132-306c69955af0","block_type":"box","text":"operations of a Fund. For example, a Fund may be required in certain of such countries to invest","page_number":107,"box":{"x":116,"y":87,"width":722,"height":12}},{"id":"cec5e6f5-c663-4041-8aa1-59ea9c584cb2","block_type":"box","text":"initially through a local broker or other entity and then have the shares purchased re-registered in the","page_number":107,"box":{"x":117,"y":103,"width":753,"height":12}},{"id":"c56cfddc-3bba-4292-8dc7-5f36afae2a54","block_type":"box","text":"name of the Fund. Re-registration may in some instances not be able to occur on a timely basis,","page_number":107,"box":{"x":117,"y":118,"width":718,"height":12}},{"id":"830725e0-3f4a-43c2-ada0-98b42815579e","block_type":"box","text":"resulting in a delay during which a Fund may be denied certain of its rights as an investor, including","page_number":107,"box":{"x":117,"y":134,"width":742,"height":12}},{"id":"f60ff50e-c15b-4852-8484-f7234623e217","block_type":"box","text":"rights as to dividends or to be made aware of certain corporate actions. There also may be instances","page_number":107,"box":{"x":117,"y":149,"width":753,"height":12}},{"id":"b37dd27b-b350-4577-9067-fc6d1250cc7b","block_type":"box","text":"where a Fund places a purchase order but is subsequently informed, at the time of re-registration, that","page_number":107,"box":{"x":116,"y":165,"width":764,"height":12}},{"id":"97fa6312-026a-4a6b-a581-95f29095bde5","block_type":"box","text":"the permissible allocation of the investment to foreign investors has been filled, depriving the Fund of","page_number":107,"box":{"x":116,"y":180,"width":754,"height":12}},{"id":"49507aea-b666-4ea4-9267-f67278f7d6ae","block_type":"box","text":"the ability to make its desired investment at that time.","page_number":107,"box":{"x":116,"y":196,"width":400,"height":12}},{"id":"7e684962-b3b4-4449-8db7-d562e5e668d7","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate","page_number":107,"box":{"x":116,"y":227,"width":714,"height":12}},{"id":"066aae18-f3d6-44c0-8731-a46704e085a3","block_type":"box","text":"investment income, capital or the proceeds of sales of securities by foreign investors. A Fund could be","page_number":107,"box":{"x":117,"y":242,"width":763,"height":12}},{"id":"c1d09c73-601c-41c4-9be8-c0b22df88143","block_type":"box","text":"adversely affected by delays in, or a refusal to grant, any required governmental approval for","page_number":107,"box":{"x":116,"y":258,"width":693,"height":12}},{"id":"71ca4413-89df-4f39-a973-9afdc03f0fe4","block_type":"box","text":"repatriation of capital, as well as by the application to the Fund of any restrictions on investments. It is","page_number":107,"box":{"x":117,"y":273,"width":759,"height":12}},{"id":"168df8de-423c-48d9-896c-4792b0cbff79","block_type":"box","text":"possible that certain countries may impose currency controls or other restrictions relating to their","page_number":107,"box":{"x":117,"y":289,"width":719,"height":12}},{"id":"c0f4db94-d51e-4348-94b1-4bf3f14ad8ff","block_type":"box","text":"currencies or to securities of issuers in those countries. To the extent that such restrictions have the","page_number":107,"box":{"x":116,"y":304,"width":746,"height":10}},{"id":"d4b8c40e-866a-40bf-afcf-c022eb030cc0","block_type":"box","text":"effect of making certain investments illiquid, securities may not be available for sale to meet","page_number":107,"box":{"x":116,"y":320,"width":685,"height":12}},{"id":"877e8893-5434-46f7-995c-8dc4913576f7","block_type":"box","text":"redemptions. Depending on a variety of financial factors, the percentage of a Fund’s portfolio subject to","page_number":107,"box":{"x":117,"y":335,"width":770,"height":12}},{"id":"a3306703-7a4d-47e5-9c45-c487c5ff371a","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the portion of the","page_number":107,"box":{"x":116,"y":351,"width":763,"height":12}},{"id":"d54a8b60-81e7-452f-8590-1ada732d57ba","block_type":"box","text":"Fund’s assets that may be used to meet redemptions may be further decreased. Even where there is","page_number":107,"box":{"x":117,"y":366,"width":754,"height":12}},{"id":"582399f9-e4b6-40f7-ad70-38c18355bc79","block_type":"box","text":"no outright restriction on repatriation of capital, the mechanics of repatriation may affect certain aspects","page_number":107,"box":{"x":117,"y":382,"width":771,"height":12}},{"id":"d6240850-2666-4994-a882-a7f3d0ebff09","block_type":"box","text":"of the operations of a Fund (for example, if funds may be withdrawn only in certain currencies and/or","page_number":107,"box":{"x":116,"y":397,"width":751,"height":12}},{"id":"420412be-9825-4f81-baed-f695cf4d0790","block_type":"box","text":"only at an exchange rate established by the government).","page_number":107,"box":{"x":116,"y":413,"width":433,"height":12}},{"id":"61f65b5c-9b54-47ba-9047-2d268452cbea","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have","page_number":107,"box":{"x":117,"y":444,"width":763,"height":12}},{"id":"f0e2ed57-3bd9-44cd-83b4-8b420ebafb95","block_type":"box","text":"actively traded securities available for investment. The Investment Company Act restricts a Fund’s","page_number":107,"box":{"x":116,"y":459,"width":734,"height":12}},{"id":"c689e10c-1d76-46b8-a5fa-99c1f1662d43","block_type":"box","text":"investments in any equity securities of an issuer that, in its most recent fiscal year, derived more than","page_number":107,"box":{"x":117,"y":475,"width":755,"height":12}},{"id":"048fa6d7-e84b-43ed-973b-4fa5a562211e","block_type":"box","text":"15% of its revenues from “securities related activities,” as defined by the rules thereunder. These","page_number":107,"box":{"x":118,"y":490,"width":722,"height":12}},{"id":"679dd351-e084-4b20-a6c7-4da6a296976b","block_type":"box","text":"provisions may restrict a Fund’s investments in certain foreign banks and other financial institutions.","page_number":107,"box":{"x":117,"y":506,"width":744,"height":12}},{"id":"f91705b0-d6dc-43cb-b09e-a22528e89fa2","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant","page_number":107,"box":{"x":117,"y":537,"width":699,"height":12}},{"id":"79ab204f-cf5c-4a7f-a66f-dea8dddcacec","block_type":"box","text":"evolution and rapid development, and these countries may lack the social, political and economic","page_number":107,"box":{"x":116,"y":552,"width":726,"height":12}},{"id":"42dea490-b3ff-40ba-accb-fe717fc9d353","block_type":"box","text":"stability characteristic of more developed countries. Some of these countries may have in the past","page_number":107,"box":{"x":116,"y":568,"width":732,"height":12}},{"id":"6918f64e-78d5-4c9b-8296-e239d2e47e75","block_type":"box","text":"failed to recognize private property rights and have at times nationalized or expropriated the assets of","page_number":107,"box":{"x":116,"y":583,"width":759,"height":12}},{"id":"6786dee1-1e91-4c74-89fb-5eeba72c1cad","block_type":"box","text":"private companies. As a result the risks described above, including the risks of nationalization or","page_number":107,"box":{"x":117,"y":599,"width":718,"height":12}},{"id":"9f8c20a3-634d-4660-a71b-7f7a48e89089","block_type":"box","text":"expropriation of assets, may be heightened. In addition, unanticipated political or social developments","page_number":107,"box":{"x":116,"y":614,"width":760,"height":12}},{"id":"05b1b6fc-ce75-4dea-b884-4bf3b770beb6","block_type":"box","text":"may affect the value of investments in these countries and the availability to a Fund of additional","page_number":107,"box":{"x":117,"y":630,"width":718,"height":12}},{"id":"25a686f2-6fed-4bdb-97ff-b6a793c184bb","block_type":"box","text":"investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":107,"box":{"x":117,"y":645,"width":770,"height":12}},{"id":"cc007686-030e-46e9-ac64-783531f827fc","block_type":"box","text":"certain of these countries and the limited volume of trading in securities in these countries may make","page_number":107,"box":{"x":116,"y":661,"width":748,"height":12}},{"id":"e8ee9a6a-560a-40d0-9711-1eb0eb28dfab","block_type":"box","text":"investments in the countries illiquid and more volatile than investments in Japan or most Western","page_number":107,"box":{"x":117,"y":676,"width":719,"height":12}},{"id":"bdc2cee9-aa80-4986-bfb9-0715ad1e6745","block_type":"box","text":"European countries. There may be little financial or accounting information available with respect to","page_number":107,"box":{"x":117,"y":692,"width":736,"height":12}},{"id":"7be3d4cf-11b7-41a1-a4a9-e0b5ccade901","block_type":"box","text":"issuers located in certain emerging market countries, and it may be difficult to assess the value or","page_number":107,"box":{"x":117,"y":707,"width":724,"height":12}},{"id":"c49fc1a2-7499-4020-8247-dc5f8642a9af","block_type":"box","text":"prospects of an investment in such issuers.","page_number":107,"box":{"x":117,"y":723,"width":319,"height":12}},{"id":"fd355d45-4524-46d3-a026-cd9d7dc3c4fe","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be","page_number":107,"box":{"x":116,"y":754,"width":723,"height":12}},{"id":"90eaaae1-36b8-4403-85ad-f2946ce55e6d","block_type":"box","text":"higher than those of Funds investing primarily in domestic securities. The costs attributable to investing","page_number":107,"box":{"x":117,"y":769,"width":763,"height":12}},{"id":"76ea22d5-e850-4000-a67c-abc9445f8fc7","block_type":"box","text":"abroad are usually higher for several reasons, such as the higher cost of custody of foreign securities,","page_number":107,"box":{"x":116,"y":785,"width":755,"height":12}},{"id":"f6d759aa-a946-49d9-9eff-f69d17055020","block_type":"box","text":"higher commissions paid on comparable transactions on foreign markets and additional costs arising","page_number":107,"box":{"x":117,"y":800,"width":746,"height":12}},{"id":"679bda83-2825-4203-8375-47e7081dd433","block_type":"box","text":"from delays in settlements of transactions involving foreign securities.","page_number":107,"box":{"x":116,"y":816,"width":515,"height":12}},{"id":"c7fc7924-b62b-4d63-8816-3a09f27cdf81","block_type":"box","text":"Risks of Investments in Russia.","page_number":107,"box":{"x":116,"y":847,"width":232,"height":9}},{"id":"354eb66f-de25-4e3e-8c55-3a9a53ab8080","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by","page_number":107,"box":{"x":350,"y":847,"width":482,"height":12}},{"id":"5e78530c-128c-4084-b15e-ad2fca22fd13","block_type":"box","text":"companies located in Russia. The Russian securities market suffers from a variety of problems","page_number":107,"box":{"x":116,"y":862,"width":709,"height":12}},{"id":"af89fc7c-355b-4eeb-a212-fe9335c9d928","block_type":"box","text":"described above in “Investment in Emerging Markets” not encountered in more developed markets.","page_number":107,"box":{"x":116,"y":878,"width":742,"height":12}},{"id":"655529aa-2ced-48f6-8970-b089349340eb","block_type":"box","text":"II-48","page_number":107,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"073eaedf-35bc-47f9-8247-b9ec96e29de0","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":107,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"74ac28dd-58ff-4c57-b0a5-9f7113b63b79","block_type":"box","text":"The Russian securities market is relatively new, and a substantial portion of securities transactions in","page_number":108,"box":{"x":116,"y":87,"width":755,"height":12}},{"id":"6b030dac-ba01-469d-aa85-cf00e17e2ed6","block_type":"box","text":"Russia are privately negotiated outside of stock exchanges. The inexperience of the Russian securities","page_number":108,"box":{"x":117,"y":102,"width":769,"height":13}},{"id":"b9106797-f4f3-4db0-a006-e54ce860067b","block_type":"box","text":"market and the limited volume of trading in securities in the market may make obtaining accurate","page_number":108,"box":{"x":117,"y":118,"width":723,"height":12}},{"id":"40d3d61b-d2db-4ac3-935d-5790231187d7","block_type":"box","text":"prices on portfolio securities from independent sources more difficult than in more developed markets.","page_number":108,"box":{"x":117,"y":134,"width":761,"height":11}},{"id":"761ff3a5-e587-4d37-92e2-261a1ccafe96","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and","page_number":108,"box":{"x":117,"y":165,"width":639,"height":12}},{"id":"ef3cf72a-fd42-4cbc-997d-2e05b57d056d","block_type":"box","text":"telecommunication systems, settlement, clearing and registration of securities transactions are subject","page_number":108,"box":{"x":116,"y":180,"width":764,"height":12}},{"id":"ffd2d2cf-fe20-4a0c-bba9-b45de225c85c","block_type":"box","text":"to additional risks. Prior to 2013, there was no central registration system for equity share registration","page_number":108,"box":{"x":116,"y":196,"width":756,"height":12}},{"id":"c8ea3bee-a412-4956-a806-8375be66a48e","block_type":"box","text":"in Russia and registration was carried out either by the issuers themselves or by registrars located","page_number":108,"box":{"x":117,"y":211,"width":733,"height":12}},{"id":"c8721583-de92-4dae-be27-c0c3103873a6","block_type":"box","text":"throughout Russia. These registrars may not have been subject to effective state supervision or","page_number":108,"box":{"x":116,"y":227,"width":715,"height":12}},{"id":"0d213c6c-4794-43d1-9958-e6eab7fb46ea","block_type":"box","text":"licensed with any governmental entity. In 2013, Russia established the National Settlement Depository","page_number":108,"box":{"x":117,"y":242,"width":764,"height":12}},{"id":"747b6970-5e3d-43bd-8fda-809bcd481fc1","block_type":"box","text":"(“NSD”) as a recognized central securities depository, and title to Russian equities held through the","page_number":108,"box":{"x":117,"y":258,"width":740,"height":12}},{"id":"f359f14d-1731-4bea-8e87-03786b00a8bb","block_type":"box","text":"NSD is now based on the records of the NSD and not on the records of the local registrars. Although","page_number":108,"box":{"x":117,"y":273,"width":751,"height":12}},{"id":"69be0a37-c330-45b9-ac71-cee220e41aee","block_type":"box","text":"the implementation of the NSD has enhanced the efficiency and transparency of the Russian securities","page_number":108,"box":{"x":116,"y":289,"width":770,"height":12}},{"id":"cf317df1-8c89-4b48-99d3-a849ed1c1711","block_type":"box","text":"market, loss still can occur. Additionally, issuers and registrars remain prominent in the validation and","page_number":108,"box":{"x":117,"y":304,"width":757,"height":12}},{"id":"ba57862e-7c19-43ff-ba9c-783c1b3f7ee5","block_type":"box","text":"approval of documentation requirements for corporate action processing in Russia, and, because the","page_number":108,"box":{"x":116,"y":320,"width":754,"height":12}},{"id":"39bc9983-4f86-4659-a885-9f00d4e21581","block_type":"box","text":"documentation requirements and approval criteria vary between registrars and issuers, there remain","page_number":108,"box":{"x":116,"y":335,"width":749,"height":12}},{"id":"e9df41e2-83f9-435e-a274-b32a4049b25d","block_type":"box","text":"inconsistent market standards in the Russian market with respect to the completion and submission of","page_number":108,"box":{"x":117,"y":351,"width":762,"height":12}},{"id":"8e0d79a9-770e-4017-94f1-a5b4c2d299df","block_type":"box","text":"corporate action elections. To the extent that a Fund suffers a loss relating to title or corporate actions","page_number":108,"box":{"x":116,"y":366,"width":761,"height":12}},{"id":"f1dd7faf-8804-4b21-930f-b92410e9d364","block_type":"box","text":"relating to its portfolio securities, it may be difficult for the Fund to enforce its rights or otherwise","page_number":108,"box":{"x":117,"y":382,"width":713,"height":12}},{"id":"26b6e68f-8a44-493b-b8f3-ba4b398aeadf","block_type":"box","text":"remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":108,"box":{"x":117,"y":397,"width":731,"height":12}},{"id":"f9c945bb-fc5c-4759-b212-5219bf4de9a0","block_type":"box","text":"custodian bank, and as a result the custodian may be considered the ultimate owner of securities held","page_number":108,"box":{"x":116,"y":413,"width":762,"height":12}},{"id":"68b30154-ed46-4a65-b692-f2fcec96994a","block_type":"box","text":"on behalf of their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments","page_number":108,"box":{"x":116,"y":428,"width":770,"height":12}},{"id":"2d4a4e07-9947-494a-899b-4a488a11dde3","block_type":"box","text":"in Russia.","page_number":108,"box":{"x":117,"y":444,"width":77,"height":9}},{"id":"c1013090-0a5f-4603-af8a-b334338ed264","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military","page_number":108,"box":{"x":117,"y":475,"width":708,"height":12}},{"id":"fcd0b491-c150-444a-af70-75001984767f","block_type":"box","text":"measures, as it did with Georgia in the summer of 2008 and the Ukraine in 2014 and 2022. Russia","page_number":108,"box":{"x":117,"y":490,"width":735,"height":12}},{"id":"d9fe3617-9e8b-4cbc-be16-a9d54f98b80b","block_type":"box","text":"launched a large-scale invasion of Ukraine on February 24, 2022. The extent and duration of the","page_number":108,"box":{"x":117,"y":506,"width":720,"height":12}},{"id":"fdfbde06-e6b2-4832-91e8-f1201986e704","block_type":"box","text":"military action, resulting sanctions and resulting future market disruptions, including declines in its","page_number":108,"box":{"x":117,"y":521,"width":727,"height":12}},{"id":"1ea928f0-2e86-4559-a1d0-8fcdc16feb2c","block_type":"box","text":"stock markets and the value of the ruble against the U.S. dollar, are impossible to predict. Any such","page_number":108,"box":{"x":116,"y":537,"width":744,"height":12}},{"id":"5abf3e8c-7167-4133-ad75-11b6cc5c5814","block_type":"box","text":"disruptions caused by Russian military action or other actions (including cyberattacks and espionage)","page_number":108,"box":{"x":116,"y":552,"width":757,"height":12}},{"id":"1295b530-1e3e-44c4-8a16-38eb432bf632","block_type":"box","text":"or resulting actual and threatened responses to such activity, including purchasing and financing","page_number":108,"box":{"x":116,"y":568,"width":720,"height":12}},{"id":"24547388-e052-41c6-8b99-7387c75177be","block_type":"box","text":"restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or","page_number":108,"box":{"x":117,"y":583,"width":685,"height":12}},{"id":"0b6b1cd6-9454-4cc8-bf66-f613926dab7b","block_type":"box","text":"cyberattacks on the Russian government, Russian companies or Russian individuals, including","page_number":108,"box":{"x":116,"y":599,"width":710,"height":12}},{"id":"042e138a-180a-4bc5-ab5a-12c05047981a","block_type":"box","text":"politicians, may impact Russia’s economy and Russian issuers of securities in which the Fund invests.","page_number":108,"box":{"x":117,"y":614,"width":763,"height":12}},{"id":"65c75a79-41b7-472b-b5e2-4a1e85f2e1a4","block_type":"box","text":"Actual and threatened responses to such activity, including purchasing restrictions, sanctions, tariffs or","page_number":108,"box":{"x":116,"y":630,"width":766,"height":12}},{"id":"42f6c20c-5045-45f3-b540-1ae1bb268342","block_type":"box","text":"cyberattacks on the Russian government or Russian companies, may impact Russia’s economy and","page_number":108,"box":{"x":116,"y":645,"width":750,"height":12}},{"id":"44621537-c7c4-46c6-8058-9865d9097dc6","block_type":"box","text":"Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":108,"box":{"x":117,"y":661,"width":720,"height":12}},{"id":"5c88ee81-03d6-42bc-b9b4-19b542daa8fb","block_type":"box","text":"military action may also impact the markets for certain Russian commodities, such as oil and natural","page_number":108,"box":{"x":117,"y":676,"width":741,"height":12}},{"id":"f8713c41-440e-48f2-9423-194740177b70","block_type":"box","text":"gas, as well as other sectors of the Russian economy, and may likely have collateral impacts on such","page_number":108,"box":{"x":116,"y":692,"width":752,"height":12}},{"id":"7362f2ab-57a9-4f11-bab1-ec26f5516e51","block_type":"box","text":"sectors globally.","page_number":108,"box":{"x":116,"y":707,"width":119,"height":12}},{"id":"15d7a215-0206-426c-9d12-e229a7a72198","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”)","page_number":108,"box":{"x":117,"y":738,"width":735,"height":12}},{"id":"8256a6b5-00f8-45d2-a8d8-9f44857ad64b","block_type":"box","text":"have imposed economic sanctions, which can consist of prohibiting certain securities trades, certain","page_number":108,"box":{"x":117,"y":754,"width":739,"height":12}},{"id":"2e39b98c-7c05-43a9-9606-82396e80c069","block_type":"box","text":"private transactions in the energy sector, asset freezes and prohibition of all business, against certain","page_number":108,"box":{"x":117,"y":769,"width":751,"height":12}},{"id":"6f3531ed-0337-442d-a198-ae9bd6e92aec","block_type":"box","text":"Russian individuals, including politicians, and Russian corporate and banking entities. The Sanctioning","page_number":108,"box":{"x":117,"y":785,"width":760,"height":12}},{"id":"e1a61b1f-e3ba-4c7c-ad7b-b09796352e36","block_type":"box","text":"Bodies, or others, could also institute broader sanctions on Russia, including banning Russia from","page_number":108,"box":{"x":117,"y":800,"width":725,"height":12}},{"id":"f038862f-7ca4-45d0-9527-9a246e78fc30","block_type":"box","text":"global payments systems that facilitate cross-border payments. These sanctions, or even the threat of","page_number":108,"box":{"x":116,"y":816,"width":758,"height":12}},{"id":"143f8197-43a4-435e-9fd3-b10770f9216f","block_type":"box","text":"further sanctions, may result in the decline of the value and liquidity of Russian securities, a weakening","page_number":108,"box":{"x":116,"y":831,"width":769,"height":12}},{"id":"264335d7-8af5-4fab-bf3e-cfaa8869e0af","block_type":"box","text":"of the ruble or other adverse consequences to the Russian economy. These sanctions have resulted","page_number":108,"box":{"x":116,"y":847,"width":752,"height":12}},{"id":"1a67bcb8-3430-4a3b-807e-5bd5e7793c27","block_type":"box","text":"and may continue to result in the immediate freeze of Russian securities and/or funds invested in","page_number":108,"box":{"x":116,"y":862,"width":725,"height":12}},{"id":"23cc3463-995b-49f1-94aa-fa07084980b4","block_type":"box","text":"prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities and/or","page_number":108,"box":{"x":117,"y":878,"width":757,"height":12}},{"id":"1ab472f4-6a5a-40b2-b387-2919eb564bf6","block_type":"box","text":"II-49","page_number":108,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"9f65ac78-f6cb-4feb-b55f-02ec3c400c21","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":108,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d5b3bf70-37ab-40ef-82ec-099a58b0222f","block_type":"box","text":"assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":109,"box":{"x":116,"y":87,"width":766,"height":12}},{"id":"f02a3714-b7d3-4048-86fe-259fb26d4cac","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":109,"box":{"x":116,"y":102,"width":435,"height":13}},{"id":"219685d0-c7b4-4218-bbd5-a23a7ebc8e57","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":109,"box":{"x":116,"y":134,"width":253,"height":12}},{"id":"33b129ac-4c5a-42e1-aff8-9de30dbba14c","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi","page_number":109,"box":{"x":371,"y":134,"width":497,"height":12}},{"id":"36bb23fa-4a4d-4266-b064-ae555548fb49","block_type":"box","text":"Arabian issuers is new and untested. Such ability could be restricted or revoked by the Saudi Arabian","page_number":109,"box":{"x":116,"y":149,"width":757,"height":12}},{"id":"5ca3c252-2a92-42a4-91d7-b520bfaf04ee","block_type":"box","text":"government at any time, and unforeseen risks could materialize due to foreign ownership in such","page_number":109,"box":{"x":116,"y":165,"width":724,"height":12}},{"id":"9e0b74bf-9ca4-40cb-aee9-261e86dbce5a","block_type":"box","text":"securities. In addition, the Capital Market Authority (“CMA”) places investment limitations on the","page_number":109,"box":{"x":116,"y":180,"width":715,"height":12}},{"id":"5bfe889a-734e-452d-ae0d-d8d7f50364c8","block_type":"box","text":"ownership of Saudi Arabian issuers by foreign investors, including a limitation on a Fund’s ownership","page_number":109,"box":{"x":116,"y":196,"width":753,"height":12}},{"id":"31a0ec01-6ab6-4942-be93-b1c81f184030","block_type":"box","text":"of any single issuer listed on the Saudi Arabian Stock Exchange, which may prevent a Fund from","page_number":109,"box":{"x":116,"y":211,"width":726,"height":12}},{"id":"4c27d89d-c6ca-470b-9b59-6391d59891df","block_type":"box","text":"investing in accordance with its strategy and contribute to tracking error against the Underlying Index.","page_number":109,"box":{"x":117,"y":227,"width":757,"height":12}},{"id":"dc84e84c-2688-4cf7-af70-ce701174f80c","block_type":"box","text":"These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":109,"box":{"x":116,"y":242,"width":710,"height":12}},{"id":"0a092a43-0268-4c97-9c8f-55b2922e7eb1","block_type":"box","text":"approvals or additional foreign taxes, may be instituted at any time. A Fund may not be able to obtain","page_number":109,"box":{"x":116,"y":258,"width":756,"height":12}},{"id":"4ba90030-5481-4c82-8ee4-7e6e8e68aee9","block_type":"box","text":"or maintain any such licenses or approvals and may not be able to buy and sell securities at full value.","page_number":109,"box":{"x":116,"y":273,"width":763,"height":12}},{"id":"0cb38418-d00d-4a5d-b50a-7d5daae6e8a1","block_type":"box","text":"Major disruptions or regulatory changes could occur in the Saudi Arabian market, any of which could","page_number":109,"box":{"x":117,"y":289,"width":750,"height":12}},{"id":"0ba0b8dd-457b-49da-be83-4fd72a5ce326","block_type":"box","text":"negatively impact a Fund. These risks may be exacerbated, compared to more developed markets,","page_number":109,"box":{"x":117,"y":304,"width":741,"height":12}},{"id":"748f490d-6307-430f-9508-d70c1cbbfcba","block_type":"box","text":"given the limited history of foreign investment in the Saudi Arabian market. Investments in","page_number":109,"box":{"x":116,"y":320,"width":672,"height":12}},{"id":"77e3f859-74f4-46d0-a08d-8469c0397f37","block_type":"box","text":"Saudi Arabia may also be subject to loss due to expropriation or nationalization of assets and property","page_number":109,"box":{"x":116,"y":335,"width":764,"height":12}},{"id":"25b42155-61ff-4e87-89d5-c591827871e2","block_type":"box","text":"or the imposition of restrictions on additional foreign investments and repatriation of capital. Such","page_number":109,"box":{"x":116,"y":351,"width":725,"height":12}},{"id":"3ffe1b63-450b-48fe-8b17-9e76ce7ac0fb","block_type":"box","text":"heightened risks may include, among others, restrictions on and government intervention in","page_number":109,"box":{"x":117,"y":366,"width":683,"height":12}},{"id":"166e86e0-781c-4f51-833a-47d39f29f579","block_type":"box","text":"international trade, confiscatory taxation, political instability, including authoritarian and/or military","page_number":109,"box":{"x":117,"y":382,"width":724,"height":12}},{"id":"cdfc0afb-54cc-4c36-a880-2a154d308392","block_type":"box","text":"involvement in governmental decision making, armed conflict, crime and instability as a result of","page_number":109,"box":{"x":117,"y":397,"width":715,"height":12}},{"id":"320a50a3-189d-483f-b35b-5f4d334c284c","block_type":"box","text":"religious, ethnic and/or socioeconomic unrest. Saudi Arabia has privatized, or has begun the process","page_number":109,"box":{"x":117,"y":413,"width":754,"height":12}},{"id":"9c2df027-cf75-40c8-bf90-8a3ff7f474dc","block_type":"box","text":"of privatizing, certain entities and industries. Newly privatized companies may face strong competition","page_number":109,"box":{"x":116,"y":428,"width":759,"height":12}},{"id":"81c014b2-9580-4d6c-8abb-553b3418a264","block_type":"box","text":"from government-sponsored competitors that have not been privatized. In some instances, investors in","page_number":109,"box":{"x":116,"y":444,"width":768,"height":12}},{"id":"9a4c8b96-24ce-4086-a9ab-e4f62db0e737","block_type":"box","text":"newly privatized entities have suffered losses due to the inability of the newly privatized entities to","page_number":109,"box":{"x":117,"y":459,"width":728,"height":12}},{"id":"80fd53bb-cae8-4ebb-95f6-b4598f84052d","block_type":"box","text":"adjust quickly to a competitive environment or changing regulatory and legal standards or, in some","page_number":109,"box":{"x":116,"y":475,"width":737,"height":12}},{"id":"ac977a6f-2eca-419d-9e1f-e2769a8b4335","block_type":"box","text":"cases, due to re-nationalization of such privatized entities. There is no assurance that similar losses","page_number":109,"box":{"x":116,"y":490,"width":745,"height":12}},{"id":"bd53981a-a953-40b4-9616-74073081f57a","block_type":"box","text":"will not recur. Further, under income tax laws imposed by the Department of Zakat and Income Tax,","page_number":109,"box":{"x":116,"y":506,"width":747,"height":12}},{"id":"f0da308a-af1c-4dd7-b16b-9f74ae5712ce","block_type":"box","text":"dividends paid by a Saudi Arabian company to foreign stockholders are generally subject to a 5%","page_number":109,"box":{"x":116,"y":521,"width":727,"height":12}},{"id":"8de920c0-f49b-400f-b0c3-763578342618","block_type":"box","text":"withholding tax (different tax rates may apply pursuant to an applicable treaty). Saudi Arabia is highly","page_number":109,"box":{"x":116,"y":537,"width":754,"height":12}},{"id":"e419cf83-ea9f-4c89-956f-242e3d7e006d","block_type":"box","text":"reliant on income from the sale of petroleum and trade with other countries involved in the sale of","page_number":109,"box":{"x":117,"y":552,"width":725,"height":12}},{"id":"0e09f877-af99-4d67-b8d0-322e3c4e1222","block_type":"box","text":"petroleum, and its economy is therefore vulnerable to changes in foreign currency values and the","page_number":109,"box":{"x":117,"y":568,"width":726,"height":12}},{"id":"48b3510f-76d0-493b-a997-18cfa881f49d","block_type":"box","text":"market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":109,"box":{"x":117,"y":583,"width":741,"height":12}},{"id":"ec4a59a5-c3bd-4d75-9813-155b8a44262d","block_type":"box","text":"impacted.","page_number":109,"box":{"x":117,"y":599,"width":76,"height":12}},{"id":"d9b734e9-f694-4363-a7a6-7b6bb6ce93fa","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial","page_number":109,"box":{"x":117,"y":630,"width":701,"height":12}},{"id":"3d252fc1-bd32-4ccf-9837-eff3f6f25215","block_type":"box","text":"influence over many aspects of the private sector. Although liberalization in the wider economy is","page_number":109,"box":{"x":117,"y":645,"width":724,"height":12}},{"id":"1f50094a-fa43-4215-87d5-f46a0c830a80","block_type":"box","text":"underway, in many areas it has lagged significantly: restrictions on foreign ownership persist, and the","page_number":109,"box":{"x":117,"y":661,"width":749,"height":12}},{"id":"43953d99-4453-4e4a-b411-a10033423b50","block_type":"box","text":"government has an ownership stake in many key industries. The situation is exacerbated by the fact","page_number":109,"box":{"x":116,"y":676,"width":743,"height":12}},{"id":"55fd3365-73b6-4d4b-9d77-50d0918fbb9e","block_type":"box","text":"that Saudi Arabia is governed by an absolute monarchy. Saudi Arabia has historically experienced","page_number":109,"box":{"x":116,"y":692,"width":729,"height":12}},{"id":"19a88034-bab4-4188-ab19-3d50f301e3af","block_type":"box","text":"strained relations with economic partners worldwide, including other countries in the Middle East due to","page_number":109,"box":{"x":116,"y":707,"width":766,"height":12}},{"id":"0d2fa5e5-41f2-4107-9c90-ebc2e4f01c12","block_type":"box","text":"geopolitical events. Incidents involving a Middle Eastern country’s or the region’s security, including","page_number":109,"box":{"x":116,"y":723,"width":737,"height":12}},{"id":"5fe76e92-8641-4428-8e76-07dfbe83fef2","block_type":"box","text":"terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":109,"box":{"x":116,"y":738,"width":752,"height":12}},{"id":"9c1f583c-48d7-4a7c-aac6-a76e6e4d8c66","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions","page_number":109,"box":{"x":117,"y":754,"width":761,"height":12}},{"id":"1b44d754-6d8c-496a-99ef-b260c71461fe","block_type":"box","text":"in Saudi Arabia, which could affect private sector companies and a Fund, as well as the value of","page_number":109,"box":{"x":117,"y":769,"width":713,"height":12}},{"id":"c58f22ea-c430-43dc-8527-50b57f7ee07d","block_type":"box","text":"securities in a Fund’s portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian","page_number":109,"box":{"x":116,"y":785,"width":759,"height":12}},{"id":"89430b52-0b8f-4af6-86dc-bfe1cf19c59d","block_type":"box","text":"corporate entities, or even the threat of sanctions, may result in the decline of the value and liquidity of","page_number":109,"box":{"x":116,"y":800,"width":760,"height":12}},{"id":"79840824-ae47-4637-bb1d-db89a454356f","block_type":"box","text":"Saudi Arabian securities, a weakening of the Saudi riyal or other adverse consequences to the Saudi","page_number":109,"box":{"x":116,"y":816,"width":749,"height":12}},{"id":"75651983-af14-462d-8ecc-7a407a88ee8b","block_type":"box","text":"Arabian economy. In addition, Saudi Arabia’s economy relies heavily on cheap, foreign labor, and","page_number":109,"box":{"x":116,"y":831,"width":729,"height":12}},{"id":"1e137229-80f8-490a-83ba-3cba917d2709","block_type":"box","text":"changes in the availability of this labor supply could have an adverse effect on the economy.","page_number":109,"box":{"x":116,"y":847,"width":690,"height":12}},{"id":"6688057f-ab53-44b2-88c5-fb4958e24832","block_type":"box","text":"II-50","page_number":109,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"5b4aae4c-f527-4244-9425-c2d61e9c46f5","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":109,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1a2d5b62-e541-4df6-bd1b-d551593171cc","block_type":"box","text":"The securities markets in Saudi Arabia may not be as developed as those in other countries. As a","page_number":110,"box":{"x":116,"y":87,"width":730,"height":12}},{"id":"37b38209-35b6-4a2a-b241-64c75929b54c","block_type":"box","text":"result, securities markets in Saudi Arabia are subject to greater risks associated with market volatility,","page_number":110,"box":{"x":117,"y":102,"width":757,"height":13}},{"id":"3f850d1e-8e39-494c-83d4-3e9421837bf1","block_type":"box","text":"lower market capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations,","page_number":110,"box":{"x":117,"y":118,"width":705,"height":12}},{"id":"0e76967b-d4f9-4ae3-b8cf-196c3a468a60","block_type":"box","text":"uncertainty regarding the existence of trading markets, governmental control and heavy regulation of","page_number":110,"box":{"x":117,"y":134,"width":751,"height":12}},{"id":"3425300f-45ab-4170-a71d-e31aa1ec195a","block_type":"box","text":"labor and industry. Shares of certain Saudi Arabian companies tend to trade less frequently than those","page_number":110,"box":{"x":117,"y":149,"width":766,"height":12}},{"id":"cc434160-7139-43da-a485-d2ad90bcdb66","block_type":"box","text":"of companies on exchanges in more developed markets. Such infrequent trading may adversely affect","page_number":110,"box":{"x":116,"y":165,"width":764,"height":12}},{"id":"f2ad90d3-5b87-49f9-9306-3aefba80bf2a","block_type":"box","text":"the pricing of these securities and a Fund’s ability to sell these securities in the future. Current","page_number":110,"box":{"x":116,"y":180,"width":701,"height":12}},{"id":"321a7f32-f173-43cf-b074-b2f59f27ec2c","block_type":"box","text":"regulations in Saudi Arabian markets may require a Fund to execute trades of securities through a","page_number":110,"box":{"x":117,"y":196,"width":733,"height":12}},{"id":"e8538a93-b90f-41d8-b2fe-4bc0c1cceb6a","block_type":"box","text":"single broker. As a result, the Manager will have less flexibility to choose among brokers on behalf of a","page_number":110,"box":{"x":116,"y":211,"width":767,"height":12}},{"id":"c6dde79c-be5c-4c5d-805d-20f9419be8bf","block_type":"box","text":"Fund than is typically the case for investment managers.","page_number":110,"box":{"x":117,"y":227,"width":424,"height":12}},{"id":"6ff30e0a-92ee-4f78-a85b-b8c729cb96b2","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically","page_number":110,"box":{"x":116,"y":258,"width":687,"height":12}},{"id":"041707a4-3533-4f84-9e29-4f036733be37","block_type":"box","text":"experienced political instability, and there remains the possibility that the stability will not hold in the","page_number":110,"box":{"x":116,"y":273,"width":741,"height":12}},{"id":"27b54b3d-26de-44f1-abb8-470a4ff44a14","block_type":"box","text":"future or that instability in the larger Middle East region could adversely impact the economy of Saudi","page_number":110,"box":{"x":116,"y":289,"width":755,"height":12}},{"id":"16cc6342-29df-46c4-abfb-755faacf6f0a","block_type":"box","text":"Arabia. Instability may be caused by military developments, government interventions in the","page_number":110,"box":{"x":116,"y":304,"width":686,"height":12}},{"id":"2f7c0b06-3a28-44b7-976a-4f72fc4cc3cf","block_type":"box","text":"marketplace, terrorism, extremist attitudes, attempted social or political reforms, religious differences,","page_number":110,"box":{"x":117,"y":320,"width":755,"height":12}},{"id":"cea9cf66-ea18-4ddf-bebc-a7da3f527d97","block_type":"box","text":"or other factors. Additionally, anti-Western views held by certain groups in the Middle East may","page_number":110,"box":{"x":116,"y":335,"width":710,"height":12}},{"id":"280ca8d0-5072-4fad-bbc7-3f0fda61d9b8","block_type":"box","text":"influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":110,"box":{"x":117,"y":351,"width":740,"height":12}},{"id":"06f71d0a-e657-49ec-bdfa-b8cf9a948d2f","block_type":"box","text":"with Saudi Arabia and other Middle-Eastern countries may affect these attitudes and policies. The U.S.","page_number":110,"box":{"x":116,"y":366,"width":768,"height":12}},{"id":"ccd890d5-3258-4c22-b328-6ab8139815d9","block_type":"box","text":"is a significant, and in some cases the most significant, trading partner of, or foreign investor in, Saudi","page_number":110,"box":{"x":117,"y":382,"width":760,"height":12}},{"id":"2a992be0-c9fd-462e-bf19-7ef0fdb6aae2","block_type":"box","text":"Arabia. As a result, economic conditions of Saudi Arabia may be particularly affected by changes in the","page_number":110,"box":{"x":116,"y":397,"width":771,"height":12}},{"id":"28d1c5f5-dd6d-4fda-9965-38344af06aa8","block_type":"box","text":"U.S. economy. A decrease in U.S. imports or exports, new trade and financial regulations or tariffs,","page_number":110,"box":{"x":117,"y":413,"width":738,"height":12}},{"id":"34f4a196-a645-4fe1-a74c-fcd509f85339","block_type":"box","text":"changes in the U.S. dollar exchange rate or an economic slowdown in the U.S. may have a material","page_number":110,"box":{"x":116,"y":428,"width":746,"height":12}},{"id":"f56d8110-5e01-4b49-8913-645742017249","block_type":"box","text":"adverse effect on the economic conditions of Saudi Arabia and, as a result, securities to which the","page_number":110,"box":{"x":116,"y":444,"width":733,"height":11}},{"id":"0eee7d95-e545-40fc-9ab3-1786a7a6f894","block_type":"box","text":"Fund has exposure. Political instability in North Africa and the larger Middle East region has caused","page_number":110,"box":{"x":117,"y":459,"width":743,"height":12}},{"id":"85f629e0-e199-4fdb-b83c-a944278dc999","block_type":"box","text":"significant disruptions to many industries. Continued political and social unrest in these areas may","page_number":110,"box":{"x":116,"y":475,"width":732,"height":12}},{"id":"9daff65c-3a33-4adb-af57-c41442cea232","block_type":"box","text":"negatively affect the value of securities in a Fund’s portfolio.","page_number":110,"box":{"x":117,"y":490,"width":449,"height":12}},{"id":"117cf707-9232-4e98-89c5-241b4b9d6978","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to","page_number":110,"box":{"x":117,"y":521,"width":731,"height":12}},{"id":"1a55d997-08a9-4314-aafe-f92c2d58d7b3","block_type":"box","text":"sanctions and/or embargoes imposed by the U.S. Government and the United Nations and/or countries","page_number":110,"box":{"x":116,"y":537,"width":772,"height":12}},{"id":"f93556f3-7b79-4cb8-94fd-df339ba9d65e","block_type":"box","text":"identified by the U.S. Government as state sponsors of terrorism. As a result, an issuer may sustain","page_number":110,"box":{"x":117,"y":552,"width":744,"height":12}},{"id":"d2549457-2282-419c-aa52-273997022f0e","block_type":"box","text":"damage to its reputation if it is identified as an issuer which operates in, or has dealings with, such","page_number":110,"box":{"x":116,"y":568,"width":734,"height":12}},{"id":"6ed1e5c4-b362-4993-af6a-bae6666512bf","block_type":"box","text":"countries. A Fund, as an investor in such issuers will be indirectly subject to those risks.","page_number":110,"box":{"x":116,"y":583,"width":655,"height":12}},{"id":"628c3112-cf98-4994-b403-c4c9164a4538","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":110,"box":{"x":116,"y":614,"width":237,"height":12}},{"id":"ff628c4f-0ff9-4126-a9b6-6c5e053ca918","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory,","page_number":110,"box":{"x":354,"y":614,"width":493,"height":12}},{"id":"ab1eda03-13fa-4637-a87f-5fcb71ce66a1","block_type":"box","text":"political, currency, security, expropriation and/or nationalization of assets and economic risk specific to","page_number":110,"box":{"x":117,"y":630,"width":764,"height":12}},{"id":"173cfce4-7969-4230-b771-3242a6e2256a","block_type":"box","text":"Venezuela. Venezuela is extremely well endowed with natural resources, including oil and natural gas,","page_number":110,"box":{"x":116,"y":645,"width":765,"height":12}},{"id":"26c64cae-5457-4721-8037-88996c2ba230","block_type":"box","text":"and its economy is heavily dependent on export of natural resources to key trading partners. Any act of","page_number":110,"box":{"x":116,"y":661,"width":766,"height":12}},{"id":"664ba2de-c21c-4ab9-af0b-34f4f9f5076a","block_type":"box","text":"terrorism, an armed conflict or a breakdown of a key trading relationship that disrupts the production or","page_number":110,"box":{"x":116,"y":676,"width":763,"height":12}},{"id":"9ec747fe-c15a-4dfd-8b17-a8dfe0ff9d4d","block_type":"box","text":"export of natural resources will likely negatively affect the Venezuelan economy. The government","page_number":110,"box":{"x":116,"y":692,"width":723,"height":12}},{"id":"85f5dc07-c6d0-48d0-ae1e-61eaebea914d","block_type":"box","text":"continues to control key sectors of the economy, including upstream oil and gas production, and has","page_number":110,"box":{"x":116,"y":707,"width":744,"height":12}},{"id":"68e651dc-45f9-47b0-beb7-4b73bb1f4564","block_type":"box","text":"sought to increase its role in key sectors, such as telecommunications and steel. Meanwhile,","page_number":110,"box":{"x":116,"y":723,"width":686,"height":12}},{"id":"e101c7bf-fa47-41bd-bbdd-df58c1fa86ca","block_type":"box","text":"ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":110,"box":{"x":116,"y":738,"width":747,"height":12}},{"id":"741dff1b-5047-475d-b3c4-cd643865b500","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues","page_number":110,"box":{"x":116,"y":754,"width":741,"height":12}},{"id":"0ad233aa-f251-47a6-8308-798ee73dcf5e","block_type":"box","text":"between the governments of the U.S. and Venezuela. The U.S. has imposed economic sanctions,","page_number":110,"box":{"x":117,"y":769,"width":725,"height":12}},{"id":"f740a355-97b3-4d15-a929-697bec97f929","block_type":"box","text":"which consist of asset freezes and sectoral sanctions, on certain Venezuelan individuals and","page_number":110,"box":{"x":116,"y":785,"width":687,"height":11}},{"id":"11158879-a500-4cf8-9705-2866a91a7933","block_type":"box","text":"Venezuelan corporate entities, and on the Venezuelan government. The U.S. could also institute","page_number":110,"box":{"x":116,"y":800,"width":717,"height":12}},{"id":"b2c89650-4e65-43a9-baae-869ded43e11d","block_type":"box","text":"broader sanctions on Venezuela. The U.S. has also taken military action against Venezuela in an effort","page_number":110,"box":{"x":117,"y":816,"width":764,"height":12}},{"id":"1a1de615-b58b-481c-b816-20f3599a378f","block_type":"box","text":"to effect regime change. Military action, sanctions, or even the threat of further military action and","page_number":110,"box":{"x":116,"y":831,"width":727,"height":12}},{"id":"9844c0a2-d3ee-4b68-8ad3-65d8ac70133c","block_type":"box","text":"sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a weakening of","page_number":110,"box":{"x":116,"y":847,"width":762,"height":12}},{"id":"feaeac01-f232-4301-9fe0-539f896a4a2f","block_type":"box","text":"the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":110,"box":{"x":116,"y":862,"width":746,"height":12}},{"id":"16c4660a-50b8-4f56-bd51-3b105be90a07","block_type":"box","text":"ability of a Fund to buy, sell, receive or deliver those securities and/or assets. Additional sanctions","page_number":110,"box":{"x":116,"y":878,"width":732,"height":12}},{"id":"16279381-8f3c-4d46-bfb4-a3bb6897256c","block_type":"box","text":"II-51","page_number":110,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"c524fd5c-8644-4c60-97dc-44c82fd0926c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":110,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f45d852c-18d2-435a-9bbd-3eac85252383","block_type":"box","text":"against Venezuela may in the future be imposed by the U.S. or other countries. These factors, among","page_number":111,"box":{"x":116,"y":87,"width":761,"height":12}},{"id":"e73b635f-75c6-4649-9b68-50d7a88963b5","block_type":"box","text":"others, can have a negative impact on a Fund’s investments.","page_number":111,"box":{"x":116,"y":103,"width":457,"height":12}},{"id":"1ee5ff4e-9b13-4d67-b725-04070ef5a1b7","block_type":"box","text":"Brady Bonds.","page_number":111,"box":{"x":116,"y":135,"width":97,"height":12}},{"id":"321b1537-8339-49f3-aad7-9bf167db025a","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may","page_number":111,"box":{"x":215,"y":135,"width":661,"height":12}},{"id":"fa8e5eec-7da9-4302-b99c-791dde4cf8c6","block_type":"box","text":"include emerging market governmental debt obligati","page_number":111,"box":{"x":117,"y":151,"width":376,"height":11}},{"id":"c4b6843d-e0e4-4252-a1a6-c7656bc1ae92","block_type":"box","text":"ons commonly referred to as Brady Bonds. Brady","page_number":111,"box":{"x":494,"y":150,"width":364,"height":12}},{"id":"cbd725f2-1c82-4c1b-ab37-b06cd439c998","block_type":"box","text":"Bonds are securities created through the exchange of existing commercial bank loans to sovereign","page_number":111,"box":{"x":117,"y":166,"width":722,"height":12}},{"id":"3f78504f-8dd5-4332-8911-deb443cfd77c","block_type":"box","text":"entities for new obligations in connection with debt","page_number":111,"box":{"x":116,"y":181,"width":365,"height":12}},{"id":"98fa5c7d-b071-4a74-94aa-83e3572d3ea3","block_type":"box","text":"t restructurings under a debt restructuring plan","page_number":111,"box":{"x":481,"y":182,"width":338,"height":11}},{"id":"5f797cf8-7a2e-4070-9af4-1edbd8e3005f","block_type":"box","text":"introduced by former U.S. Secretary of the Treasury,","page_number":111,"box":{"x":117,"y":197,"width":380,"height":12}},{"id":"254b0c25-c338-467b-b3ff-d18e39ebe6b8","block_type":"box","text":"Nicholas F. Brady (the “Brady Plan”). Brady Plan","page_number":111,"box":{"x":498,"y":197,"width":364,"height":12}},{"id":"4c047a7c-d35e-4863-b078-4fafa69579e2","block_type":"box","text":"debt restructurings have been implemented in a number of","page_number":111,"box":{"x":116,"y":212,"width":427,"height":12}},{"id":"71294e4b-2af5-43d4-8679-36b46d829e34","block_type":"box","text":"f countries, including: Argentina, Bolivia, Brazil,","page_number":111,"box":{"x":542,"y":213,"width":342,"height":11}},{"id":"e7c15131-5eb0-4e23-bad4-6a9766cbc628","block_type":"box","text":"Bulgaria, Costa Rica, the Dominican Republic, Ecuado","page_number":111,"box":{"x":117,"y":228,"width":396,"height":12}},{"id":"e0d6b4d5-5a63-4258-bbee-64dde7ec85d5","block_type":"box","text":"r, Jordan, Mexico, Niger, Nigeria, Panama, Peru,","page_number":111,"box":{"x":515,"y":228,"width":359,"height":12}},{"id":"706f1e60-0468-4b09-9dfa-8a20c6eab969","block_type":"box","text":"the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early 2000s, certain","page_number":111,"box":{"x":116,"y":244,"width":707,"height":11}},{"id":"f41bfc96-8422-4b8e-a2b6-9890f3c699d6","block_type":"box","text":"countries began retiring their Brady Bonds, includi","page_number":111,"box":{"x":116,"y":259,"width":361,"height":12}},{"id":"c6c0c120-cd8c-4091-a0a1-e7edba709c43","block_type":"box","text":"ng Brazil, Colombia, Mexico, the Philippines, and","page_number":111,"box":{"x":480,"y":259,"width":360,"height":12}},{"id":"e2a631fe-2394-4ae0-9fa5-24a3d8a4dc13","block_type":"box","text":"Venezuela.","page_number":111,"box":{"x":116,"y":275,"width":87,"height":9}},{"id":"7d445458-12a2-49e6-a273-3b47e2cb3191","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the","page_number":111,"box":{"x":117,"y":307,"width":758,"height":12}},{"id":"5acdcf40-865e-4b6f-bcf0-e6d9600af42a","block_type":"box","text":"U.S. dollar) and are actively traded in the OTC secondary market. Brady Bonds are not considered to","page_number":111,"box":{"x":117,"y":322,"width":762,"height":12}},{"id":"ea3cd708-f9a9-447c-8500-5c8b8d1cdea3","block_type":"box","text":"be U.S. Government Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be","page_number":111,"box":{"x":117,"y":338,"width":754,"height":12}},{"id":"3b2eba06-cbe5-4a02-ab06-ffb8c86f6669","block_type":"box","text":"fixed rate par bonds or floating rate discount bonds, are generally collateralized in full as to principal","page_number":111,"box":{"x":116,"y":353,"width":751,"height":12}},{"id":"10b574e8-b028-4b7b-940b-7d50222e2580","block_type":"box","text":"by U.S. Treasury zero-coupon bonds having the same maturity as the Brady Bonds. Interest","page_number":111,"box":{"x":117,"y":369,"width":694,"height":12}},{"id":"76789075-69cd-49a2-ba1e-295382fcf634","block_type":"box","text":"payments on these Brady Bonds generally are collateralized on a one-year or longer rolling-forward","page_number":111,"box":{"x":117,"y":384,"width":749,"height":12}},{"id":"3366737b-62db-442a-b9f0-db04b40a50e0","block_type":"box","text":"basis by cash or securities in an amount that, in the case of fixed rate bonds, is equal to at least one","page_number":111,"box":{"x":117,"y":400,"width":753,"height":12}},{"id":"01cdf911-a05c-4b98-b7fc-fb10ff2dd0fa","block_type":"box","text":"year of interest payments or, in the case of floating rate bonds, initially is equal to at least one year’s","page_number":111,"box":{"x":116,"y":415,"width":754,"height":12}},{"id":"63c3e92c-972f-4b0a-945c-59bd833892a8","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals","page_number":111,"box":{"x":117,"y":431,"width":767,"height":12}},{"id":"01534f0c-a912-459b-9f6a-19b93147f42f","block_type":"box","text":"thereafter. Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances,","page_number":111,"box":{"x":116,"y":446,"width":747,"height":12}},{"id":"f6f1de51-b960-45aa-9702-e3a16b60b000","block_type":"box","text":"which in effect constitute supplemental interest payments but generally are not collateralized. Brady","page_number":111,"box":{"x":116,"y":462,"width":751,"height":12}},{"id":"2d72cabc-e199-45de-a28a-a6facde6acf1","block_type":"box","text":"Bonds are often viewed as having three or four valuation components: (i) the collateralized repayment","page_number":111,"box":{"x":117,"y":477,"width":767,"height":12}},{"id":"1efd4b07-3dd2-4b11-87e6-5d9a732f26a3","block_type":"box","text":"of principal at final maturity; (ii) the collateralized interest payments; (iii) the uncollateralized interest","page_number":111,"box":{"x":116,"y":493,"width":749,"height":12}},{"id":"3be70848-ede3-427e-94ec-8f4a1310e44e","block_type":"box","text":"payments; and (iv) any uncollateralized repayment of principal at maturity (the uncollateralized","page_number":111,"box":{"x":117,"y":508,"width":710,"height":12}},{"id":"a84d7295-f4f1-497c-92da-c6697c4ac0ce","block_type":"box","text":"amounts constitute the “residual risk”).","page_number":111,"box":{"x":116,"y":524,"width":292,"height":12}},{"id":"7dd186ed-f96a-4df8-b170-19262e58d64c","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign","page_number":111,"box":{"x":117,"y":556,"width":695,"height":12}},{"id":"e13d6f7f-49ac-46e1-8795-2e8317adbe88","block_type":"box","text":"securities, including the history of defaults with respect to commercial bank loans by public and private","page_number":111,"box":{"x":116,"y":572,"width":765,"height":12}},{"id":"94be9d40-a0a7-4af1-a029-23e22d796bce","block_type":"box","text":"entities of countries issuing Brady Bonds. In light of the residual risk of Brady Bonds and, among other","page_number":111,"box":{"x":116,"y":587,"width":764,"height":12}},{"id":"eca04718-fc46-4b4b-b8f1-5193ec2453f7","block_type":"box","text":"factors, the history of defaults, investments in Brady Bonds are considered speculative. There can be","page_number":111,"box":{"x":116,"y":603,"width":756,"height":12}},{"id":"be7b07bf-aeda-493b-8136-c4f959fd2e09","block_type":"box","text":"no assurance that Brady Bonds in which the Funds may invest will not be subject to restructuring","page_number":111,"box":{"x":117,"y":618,"width":723,"height":12}},{"id":"ca5a996b-3262-48d0-af7a-6edb98d623f8","block_type":"box","text":"arrangements or to requests for new credit, which may cause the Funds to suffer a loss of interest or","page_number":111,"box":{"x":116,"y":634,"width":752,"height":12}},{"id":"c164df1c-e18f-4f1b-bccb-ffa7307d1fe1","block_type":"box","text":"principal on any of its holdings.","page_number":111,"box":{"x":117,"y":649,"width":234,"height":12}},{"id":"308e4a25-4024-455e-8760-ef93616c3f98","block_type":"box","text":"China Investments Risk.","page_number":111,"box":{"x":117,"y":682,"width":178,"height":9}},{"id":"e40d8b74-0f0b-4d2f-8fa4-ed5bde67f088","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the","page_number":111,"box":{"x":117,"y":705,"width":729,"height":13}},{"id":"a68d9d2e-ca74-4177-b18f-17f0e02a0e2c","block_type":"box","text":"“PRC”), including certain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and","page_number":111,"box":{"x":116,"y":721,"width":758,"height":12}},{"id":"6dd400e9-ce74-4896-b674-11f518e75cad","block_type":"box","text":"special considerations not typically associated with investing in the U.S. securities markets. Such","page_number":111,"box":{"x":116,"y":736,"width":719,"height":13}},{"id":"ca9c0b6d-bf46-4de5-abe2-305d9780f832","block_type":"box","text":"heightened risks include, among others, an authoritarian government, popular unrest associated with","page_number":111,"box":{"x":117,"y":752,"width":747,"height":12}},{"id":"cc3e4102-5627-45ac-a3fc-512089764749","block_type":"box","text":"demands for improved political, economic and social conditions, the impact of regional conflict on the","page_number":111,"box":{"x":116,"y":767,"width":748,"height":13}},{"id":"5df11956-e1e4-4a85-8bf3-0bb3ff2fb137","block_type":"box","text":"economy and hostile relations with other countries.","page_number":111,"box":{"x":116,"y":783,"width":376,"height":12}},{"id":"4896a09c-fd47-43bc-bbff-937a6245c060","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could","page_number":111,"box":{"x":117,"y":815,"width":723,"height":12}},{"id":"64c6cd26-fe1b-4ee5-9e87-746e6e86ca63","block_type":"box","text":"disrupt economic development. The Chinese economy is vulnerable to the long-running disagreements","page_number":111,"box":{"x":116,"y":831,"width":769,"height":12}},{"id":"6bf1a459-5c3c-4eb2-ab16-7d3ccfa8d1cd","block_type":"box","text":"and religious and nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been","page_number":111,"box":{"x":116,"y":846,"width":758,"height":12}},{"id":"4fac50cd-5d08-4611-a276-89f54f64bed5","block_type":"box","text":"tensions between the Chinese government and many people in Hong Kong who perceive China as","page_number":111,"box":{"x":116,"y":862,"width":738,"height":12}},{"id":"e7b74bf7-c3b9-408e-83c7-f4f22d6979ce","block_type":"box","text":"tightening control over Hong Kong’s semi-autonomous liberal political, economic, legal, and social","page_number":111,"box":{"x":116,"y":878,"width":731,"height":11}},{"id":"c644e8b3-fe61-4762-8d52-95eec5138d25","block_type":"box","text":"II-52","page_number":111,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"8c3b5a67-c8ef-4e13-a5f6-3589443ba5b1","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":111,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e8d240d6-b474-430a-b367-6d04f862e71d","block_type":"box","text":"framework. Protests and unrest have increased tensions even further. Due to the interconnected","page_number":112,"box":{"x":116,"y":87,"width":721,"height":10}},{"id":"30365c3d-3a0d-4994-9cb5-6d96914a1737","block_type":"box","text":"nature of the Hong Kong and Chinese economies, this instability in Hong Kong may cause uncertainty","page_number":112,"box":{"x":117,"y":102,"width":761,"height":13}},{"id":"30ddcd6b-5998-474e-93ae-5e9b3341d82c","block_type":"box","text":"in the Hong Kong and Chinese markets. China has a complex territorial dispute regarding the","page_number":112,"box":{"x":117,"y":118,"width":697,"height":12}},{"id":"d9d9ec84-3957-45e5-b99b-d9f22fedcf04","block_type":"box","text":"sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":112,"box":{"x":116,"y":134,"width":767,"height":12}},{"id":"e03b040b-79c8-4afa-9152-e52338cef9da","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse","page_number":112,"box":{"x":116,"y":149,"width":772,"height":12}},{"id":"1a3ab3b2-3802-4a47-beda-a88f87ea6aa3","block_type":"box","text":"impact on the value of the Fund’s investments in China or Taiwan, may cause a suspension in a","page_number":112,"box":{"x":117,"y":165,"width":717,"height":12}},{"id":"8488f471-4204-4536-a238-a683b6516e72","block_type":"box","text":"Fund’s ability to trade in certain securities or other assets or may otherwise make such investments","page_number":112,"box":{"x":117,"y":180,"width":742,"height":12}},{"id":"6a84e22e-3cb3-4d0b-8dee-0637f4417d38","block_type":"box","text":"impracticable or impossible. Any escalation of hostility between China and Taiwan would likely have a","page_number":112,"box":{"x":117,"y":196,"width":759,"height":12}},{"id":"0fbeff0e-2ec1-417e-8470-0e277f0665ed","block_type":"box","text":"significant adverse impact on the value of the Fund’s investments in both countries and the region. In","page_number":112,"box":{"x":116,"y":211,"width":755,"height":12}},{"id":"47d5e049-983a-4bf5-81ba-3d316c7e0548","block_type":"box","text":"addition, China has strained international relations with Japan, India, the Philippines and other","page_number":112,"box":{"x":116,"y":227,"width":703,"height":11}},{"id":"e1e238c3-2202-4955-9713-57cb8f8d49c4","block_type":"box","text":"neighbors due to territorial disputes, historical animosities and other defense concerns. Frictions","page_number":112,"box":{"x":117,"y":242,"width":717,"height":12}},{"id":"610c703d-a644-42f0-82b6-a08002af0bfb","block_type":"box","text":"between China and the Philippines in the South China Sea pose a risk of escalation potentially leading","page_number":112,"box":{"x":117,"y":258,"width":765,"height":12}},{"id":"ff18c697-d40f-4ffd-99c0-a8fb95ac4afc","block_type":"box","text":"to military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks","page_number":112,"box":{"x":116,"y":273,"width":752,"height":12}},{"id":"2c16e2fe-ae8a-4688-b227-0c217bfe1752","block_type":"box","text":"against foreign companies and foreign governments. Actual and threatened responses to such activity","page_number":112,"box":{"x":116,"y":289,"width":763,"height":12}},{"id":"9a45d568-d8d4-4d4e-85cd-85a76f23fd83","block_type":"box","text":"and strained international relations, including purchasing restrictions, sanctions, tariffs or cyberattacks","page_number":112,"box":{"x":116,"y":304,"width":760,"height":12}},{"id":"75e0f0e6-c446-4c17-892f-414b4d49d7d9","block_type":"box","text":"on the Chinese government or Chinese companies, may impact China’s economy and Chinese issuers","page_number":112,"box":{"x":116,"y":320,"width":769,"height":12}},{"id":"1b1edd18-b7cc-4081-9d3f-b5e764afdb7a","block_type":"box","text":"of securities in which a Fund invests. China could be affected by military events on the Korean","page_number":112,"box":{"x":116,"y":335,"width":705,"height":12}},{"id":"55556d3f-e881-4f9e-8efa-2f155907ef2e","block_type":"box","text":"peninsula or internal instability within North Korea. These situations may cause uncertainty in the","page_number":112,"box":{"x":117,"y":351,"width":723,"height":12}},{"id":"2bfb6d4c-5f22-4e1f-a7f5-a7e441f3c206","block_type":"box","text":"Chinese market and may adversely affect the performance of the Chinese economy.","page_number":112,"box":{"x":117,"y":366,"width":631,"height":12}},{"id":"5e799ba7-326a-4477-8631-bcdfe6f7a1e5","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy,","page_number":112,"box":{"x":116,"y":393,"width":712,"height":12}},{"id":"54ba724e-9983-44cf-864e-319a40e6b667","block_type":"box","text":"promote foreign investment in the economy, reduce government control of the economy and develop","page_number":112,"box":{"x":117,"y":409,"width":752,"height":12}},{"id":"3ecbfa77-ca06-45d4-84c5-f360021d2866","block_type":"box","text":"market mechanisms. However, the Chinese government still exercises substantial influence over many","page_number":112,"box":{"x":117,"y":424,"width":768,"height":12}},{"id":"3adb9e92-3516-4f31-be12-f91c7ee17fd4","block_type":"box","text":"aspects of the private sector and may own or control many companies. Chinese companies, such as","page_number":112,"box":{"x":116,"y":440,"width":751,"height":12}},{"id":"98a61e2d-0864-4991-b074-5d477d30a97b","block_type":"box","text":"those in the financial services or technology sectors, and potentially other sectors in the future, are","page_number":112,"box":{"x":116,"y":455,"width":736,"height":12}},{"id":"eefe88d6-b732-432c-b749-757a9cd31bb8","block_type":"box","text":"subject to the risk that Chinese authorities can intervene in their operations and structure. The Chinese","page_number":112,"box":{"x":116,"y":471,"width":769,"height":12}},{"id":"a845b357-74c9-4727-a71c-e970e832c6c4","block_type":"box","text":"government continues to maintain a major role in economic policymaking and investing in China","page_number":112,"box":{"x":116,"y":486,"width":717,"height":12}},{"id":"52324143-54e8-4a07-bd1e-9a7651d00893","block_type":"box","text":"involves risk of loss due to expropriation, nationalization, confiscation of assets and property or the","page_number":112,"box":{"x":117,"y":502,"width":736,"height":12}},{"id":"6bb11a35-caab-43db-bb39-6401d9d0e1b4","block_type":"box","text":"imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":112,"box":{"x":117,"y":517,"width":647,"height":12}},{"id":"84d79ec7-4af6-4658-8b33-03715b44772e","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of","page_number":112,"box":{"x":116,"y":544,"width":764,"height":12}},{"id":"58cc8281-0bcc-4e82-906c-33006b40fa91","block_type":"box","text":"trading restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks.","page_number":112,"box":{"x":116,"y":560,"width":761,"height":12}},{"id":"b52455b1-6399-4755-8d6e-bbb96a363947","block_type":"box","text":"This may affect market price and liquidity of these stocks, and may have an unpredictable impact on","page_number":112,"box":{"x":116,"y":575,"width":748,"height":12}},{"id":"59486f26-faaa-48b1-a68a-6966ae443245","block_type":"box","text":"the investment activities of the Funds. Furthermore, such market interventions may have a negative","page_number":112,"box":{"x":116,"y":591,"width":745,"height":12}},{"id":"79230633-c723-4117-a0a8-276fed346b1b","block_type":"box","text":"impact on market sentiment which may in turn affect the performance of the securities markets and as","page_number":112,"box":{"x":117,"y":606,"width":762,"height":12}},{"id":"5e94a353-cf41-41b2-9826-bb42cb711c1c","block_type":"box","text":"a result the performance of the Funds.","page_number":112,"box":{"x":116,"y":622,"width":290,"height":12}},{"id":"f03cfc98-71fd-4bd8-85fd-5011bf44fb5c","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of","page_number":112,"box":{"x":117,"y":649,"width":749,"height":12}},{"id":"c14c0e27-762e-4d2b-936b-8caf8d5a0b39","block_type":"box","text":"investors, brokers and other participants than in the United States. Accordingly, issuers of securities in","page_number":112,"box":{"x":117,"y":665,"width":757,"height":12}},{"id":"2932e38e-4d9d-4a8d-bbea-edba27f0af6e","block_type":"box","text":"China, including Chinese companies that are listed on U.S. exchanges, are not subject to the same","page_number":112,"box":{"x":117,"y":680,"width":735,"height":12}},{"id":"cd21e415-c3db-4c95-803a-b08fb190861b","block_type":"box","text":"degree of regulation as are U.S. issuers with respect to such matters as insider trading rules, tender","page_number":112,"box":{"x":116,"y":696,"width":742,"height":12}},{"id":"8213f383-b57b-4947-beb3-5c013f173594","block_type":"box","text":"offer regulation, accounting standards or auditor oversight, stockholder proxy requirements and the","page_number":112,"box":{"x":116,"y":711,"width":735,"height":12}},{"id":"a83c63ab-1346-425b-b7eb-5564c27f3503","block_type":"box","text":"requirements mandating timely and accurate disclosure of information. Securities markets in China are","page_number":112,"box":{"x":117,"y":727,"width":761,"height":12}},{"id":"ee6a39da-a867-4ab8-9b42-4d19d7d9aa55","block_type":"box","text":"in the process of change and further development. This may lead to trading volatility, difficulty in the","page_number":112,"box":{"x":117,"y":742,"width":738,"height":12}},{"id":"6be6724b-e697-430e-857b-e2f52ff5acbe","block_type":"box","text":"settlement and recording of transactions and difficulty in interpreting and applying the relevant","page_number":112,"box":{"x":116,"y":758,"width":697,"height":12}},{"id":"f9baa050-f3b6-4b73-ba88-81a07519065a","block_type":"box","text":"regulation. Custodians may not be able to offer the level of service and safe-keeping in relation to the","page_number":112,"box":{"x":117,"y":773,"width":750,"height":12}},{"id":"70475088-2939-42d5-81b2-0c81885e5d6c","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In","page_number":112,"box":{"x":116,"y":789,"width":743,"height":12}},{"id":"7c3b10bb-5409-4489-bff0-86691c3286a5","block_type":"box","text":"particular, there is a risk that a Fund may not be recognized as the owner of securities that are held on","page_number":112,"box":{"x":117,"y":804,"width":759,"height":12}},{"id":"8f09fec5-f446-4ad5-ad2b-bcf182612c48","block_type":"box","text":"behalf of the Fund by a sub-custodian.","page_number":112,"box":{"x":117,"y":820,"width":284,"height":12}},{"id":"206364b2-de66-4e3b-9011-047b0aba14ad","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or","page_number":112,"box":{"x":116,"y":847,"width":707,"height":12}},{"id":"f26e8373-8c74-46f0-98ad-705feb521b20","block_type":"box","text":"litigation against Chinese companies, and shareholders may have limited legal remedies. The Funds","page_number":112,"box":{"x":117,"y":862,"width":751,"height":12}},{"id":"693bd6ef-0bee-4d59-a3cf-3cb7bb85326d","block_type":"box","text":"do not select investments based on investor protection considerations.","page_number":112,"box":{"x":116,"y":878,"width":528,"height":12}},{"id":"d6e0d67c-088b-4524-a83e-ac3a13f78755","block_type":"box","text":"II-53","page_number":112,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"a6736ff9-4cf6-4d8d-ac15-964a02d5e79b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":112,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ddde3a73-3cf7-4183-bd28-c1dbf3c87539","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company","page_number":113,"box":{"x":116,"y":87,"width":689,"height":12}},{"id":"1f46b6fa-c0fa-45fc-9a52-6558e4215113","block_type":"box","text":"Accounting Oversight Board (“PCAOB”) from inspecting the audit work and practices of accounting","page_number":113,"box":{"x":116,"y":102,"width":738,"height":13}},{"id":"be38efe5-6b32-490b-96b0-541729f7db00","block_type":"box","text":"firms in mainland China and Hong Kong for compliance with U.S. law and professional standards. On","page_number":113,"box":{"x":116,"y":118,"width":756,"height":12}},{"id":"014b5c74-46f7-4ecb-af43-964961ff01ca","block_type":"box","text":"August 26, 2022, the PCAOB signed a Statement of Protocol with the China Securities Regulatory","page_number":113,"box":{"x":116,"y":134,"width":734,"height":12}},{"id":"5563430a-1fe6-4b93-b0ae-5bd50d4cc5da","block_type":"box","text":"Commission and the Ministry of Finance of the PRC, which marked the first step toward opening","page_number":113,"box":{"x":117,"y":149,"width":719,"height":12}},{"id":"4f7db77e-1641-448d-b8cf-3b3495ee96f8","block_type":"box","text":"access for the PCAOB to inspect and investigate registered public accounting firms headquartered in","page_number":113,"box":{"x":116,"y":165,"width":755,"height":12}},{"id":"cbb10e60-c2e5-407b-a9d6-8706982c7632","block_type":"box","text":"mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":113,"box":{"x":117,"y":180,"width":672,"height":12}},{"id":"178ef4d5-70ae-47de-9fe1-78605cdb04a3","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested.","page_number":113,"box":{"x":116,"y":196,"width":767,"height":12}},{"id":"2ab41faf-85f8-4500-8968-c9ac6b4547b4","block_type":"box","text":"Audits performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be","page_number":113,"box":{"x":116,"y":211,"width":747,"height":12}},{"id":"fef92698-3ec2-4de5-a87a-905082fcdb17","block_type":"box","text":"less reliable than those performed by firms subject to PCAOB inspection. Accordingly, information","page_number":113,"box":{"x":117,"y":227,"width":730,"height":12}},{"id":"968bd561-6ef0-44d5-b953-821966d242e7","block_type":"box","text":"about the Chinese securities in which the Funds invest may be less reliable or complete. Under","page_number":113,"box":{"x":116,"y":242,"width":712,"height":12}},{"id":"5098fde8-d154-4e21-94a5-417ce27fe627","block_type":"box","text":"amendments to the Sarbanes-Oxley Act enacted in December 2020, which requires that the PCAOB","page_number":113,"box":{"x":116,"y":258,"width":752,"height":12}},{"id":"b3f86059-68ed-40b8-a720-29c0a84e9bed","block_type":"box","text":"be permitted to inspect the accounting firm of a U.S.-listed Chinese issuer, Chinese companies with","page_number":113,"box":{"x":117,"y":273,"width":743,"height":12}},{"id":"e010c7f3-83d0-4edc-867e-527b1cffa401","block_type":"box","text":"securities listed on U.S. exchanges may be delisted if the PCAOB is unable to inspect the accounting","page_number":113,"box":{"x":116,"y":289,"width":757,"height":12}},{"id":"83ae0493-e93d-4f5a-b4c5-e00f99d54e67","block_type":"box","text":"firm.","page_number":113,"box":{"x":116,"y":304,"width":37,"height":9}},{"id":"20385841-b309-4f02-8926-22895c8bfa19","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange","page_number":113,"box":{"x":116,"y":335,"width":763,"height":12}},{"id":"e23253dc-f226-47b6-a330-50adb3894520","block_type":"box","text":"control policies and repatriation restrictions imposed by the Chinese government. The imposition of","page_number":113,"box":{"x":116,"y":351,"width":740,"height":12}},{"id":"ca63430e-13cb-4643-b3a7-59a1fb7e12ed","block_type":"box","text":"currency controls may negatively impact performance and liquidity of the Funds as capital may become","page_number":113,"box":{"x":116,"y":366,"width":772,"height":12}},{"id":"1f39d202-790b-4d87-a2d1-ffe10c7debaa","block_type":"box","text":"trapped in the PRC. The Funds could be adversely affected by delays in, or a refusal to grant, any","page_number":113,"box":{"x":116,"y":382,"width":732,"height":12}},{"id":"36c4a383-f2a6-4d12-8380-bd3ed4305920","block_type":"box","text":"required governmental approval for repatriation of capital, as well as by the application to the Funds of","page_number":113,"box":{"x":117,"y":397,"width":762,"height":12}},{"id":"b4c8b564-08a3-47b4-9331-4e9a2ed8af88","block_type":"box","text":"any restrictions on investments. Investing in entities either in, or which have a substantial portion of","page_number":113,"box":{"x":116,"y":413,"width":740,"height":12}},{"id":"3d15ae58-9078-4e79-b0f5-cbc7b2854fe7","block_type":"box","text":"their operations in, the PRC may require the Funds to adopt special procedures, seek local","page_number":113,"box":{"x":116,"y":428,"width":680,"height":12}},{"id":"28b9071f-fa24-482e-8edb-4b03bd781e6a","block_type":"box","text":"government approvals or take other actions, each of which may involve additional costs and delays to","page_number":113,"box":{"x":116,"y":444,"width":759,"height":12}},{"id":"8b66be00-f453-477a-bb58-e9be8fe98656","block_type":"box","text":"the Funds. The Fund may also incur costs in connection with conversions between U.S. dollars and","page_number":113,"box":{"x":116,"y":459,"width":743,"height":12}},{"id":"2804c67b-44ec-48bc-a84a-957dd12c43e5","block_type":"box","text":"RMB, as well as in connection with conversions between the two separate types of RMB, the onshore","page_number":113,"box":{"x":117,"y":475,"width":758,"height":12}},{"id":"4fe6f2e2-655c-4dec-a9c1-a2fd698bb2ee","block_type":"box","text":"RMB (“CNY”) and the offshore RMB (“CNH”).","page_number":113,"box":{"x":117,"y":490,"width":340,"height":12}},{"id":"b24bf499-2074-4395-bcac-3905793e78bf","block_type":"box","text":"Many Chinese companies listed on U.S. exchanges use variable interest entities or “VIEs” in their","page_number":113,"box":{"x":117,"y":521,"width":727,"height":12}},{"id":"ce4d5fdc-0110-4b04-8bf8-91f1a529dc0f","block_type":"box","text":"structure as a result of foreign ownership restrictions. In a VIE structure, a Chinese operating company","page_number":113,"box":{"x":116,"y":537,"width":767,"height":12}},{"id":"ec7fb42b-2801-4e50-b749-3af034ecfd95","block_type":"box","text":"establishes a shell company in another jurisdiction to issue stock to public shareholders. When a VIE","page_number":113,"box":{"x":116,"y":552,"width":754,"height":12}},{"id":"fa3a6c64-730e-453c-9fda-97002a153ed7","block_type":"box","text":"structure is used by a Chinese company to list its stock in the U.S., instead of owning the equity","page_number":113,"box":{"x":116,"y":568,"width":715,"height":12}},{"id":"168ff77c-a66a-4819-929d-3c746e2c29d9","block_type":"box","text":"securities of the Chinese company, the U.S.-listed shell company directly or indirectly enters into","page_number":113,"box":{"x":116,"y":583,"width":721,"height":12}},{"id":"7ffcb1b3-62ed-4092-9e86-8afd61b4f4b5","block_type":"box","text":"contracts with the Chinese operating company under Chinese law. These contracts provide the U.S.-","page_number":113,"box":{"x":116,"y":599,"width":749,"height":12}},{"id":"4a24ecab-bfc1-4040-a4bd-dc14899e9bb2","block_type":"box","text":"listed shell company with only economic exposure to the Chinese company and do not represent","page_number":113,"box":{"x":117,"y":614,"width":722,"height":12}},{"id":"e6016a60-ddb5-4040-b28d-cb8e61505c83","block_type":"box","text":"equity ownership in the operating company.","page_number":113,"box":{"x":116,"y":630,"width":329,"height":12}},{"id":"f76e1ca6-8935-44bc-9e09-f61fe3b83127","block_type":"box","text":"While VIEs are a longstanding practice that is well known to Chinese officials and regulators, they have","page_number":113,"box":{"x":116,"y":661,"width":765,"height":12}},{"id":"c7269b18-3b40-4425-8e92-fc73689798cf","block_type":"box","text":"not been formally recognized under Chinese law. The Chinese government has provided guidance to","page_number":113,"box":{"x":117,"y":676,"width":749,"height":12}},{"id":"9c56b230-6a44-4a6e-ac08-b2bfdaeffb4c","block_type":"box","text":"and placed restrictions on Chinese-based companies raising capital offshore, including through VIEs.","page_number":113,"box":{"x":116,"y":692,"width":749,"height":12}},{"id":"0f1380d2-7ca9-4c4a-9c50-3f0ecc07f644","block_type":"box","text":"In 2023, the China Securities Regulatory Commission (“CSRC”) released new rules that permit the use","page_number":113,"box":{"x":117,"y":707,"width":762,"height":12}},{"id":"33f264d2-99c2-4d20-b679-97ac4fae26ed","block_type":"box","text":"of VIE structures, provided they abide by Chinese laws and register with the CSRC. The rules,","page_number":113,"box":{"x":116,"y":723,"width":699,"height":12}},{"id":"04b35d09-1a61-4fb2-ab4b-0f37df8c8d11","block_type":"box","text":"however, may cause Chinese companies to undergo greater scrutiny and add costs to VIE structures.","page_number":113,"box":{"x":117,"y":738,"width":753,"height":12}},{"id":"1be297df-acc1-4bdb-b3ba-e1f99ae6db2f","block_type":"box","text":"Intervention, rulemaking or guidance by the Chinese government with respect to VIE structures or the","page_number":113,"box":{"x":117,"y":754,"width":753,"height":12}},{"id":"d0109a58-80a8-4ba7-ab5d-0381b563c2d3","block_type":"box","text":"non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":113,"box":{"x":117,"y":769,"width":736,"height":12}},{"id":"7a0a1c0d-04bd-4e4e-96c5-1905c392ed11","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with","page_number":113,"box":{"x":117,"y":785,"width":751,"height":12}},{"id":"190d40eb-8995-427c-9aef-a41d08be63ee","block_type":"box","text":"the Chinese company and the value of the U.S.-listed stock. Further, the VIE contractual arrangement","page_number":113,"box":{"x":116,"y":800,"width":757,"height":12}},{"id":"ffc662bc-c65d-4f9b-92de-d90b9d008bc0","block_type":"box","text":"would likely be subject to Chinese law and jurisdiction, and remedies available to the U.S.-listed shell","page_number":113,"box":{"x":116,"y":816,"width":748,"height":12}},{"id":"1abd2be8-ec76-4cbb-a330-b95cf22e9260","block_type":"box","text":"company are uncertain and could be ineffective. In addition to the risk of government intervention,","page_number":113,"box":{"x":116,"y":831,"width":731,"height":12}},{"id":"fe0c7d07-c79e-4352-8faa-391bbea05632","block_type":"box","text":"investments through a VIE structure are subject to the risk that the China-based company (or its","page_number":113,"box":{"x":117,"y":847,"width":717,"height":12}},{"id":"939b19b6-664a-4a30-87f5-b2029e6092ba","block_type":"box","text":"officers, directors, or Chinese equity owners) may breach those contractual arrangements, or Chinese","page_number":113,"box":{"x":116,"y":862,"width":763,"height":12}},{"id":"73a3e5b7-663c-4a16-b83a-9c83399a95cd","block_type":"box","text":"law changes in a way that adversely affects the enforceability of these arrangements, or those","page_number":113,"box":{"x":117,"y":878,"width":703,"height":12}},{"id":"e360b208-daf1-4df3-8704-bf62fddd24a9","block_type":"box","text":"II-54","page_number":113,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"292b94e1-8012-4f5d-bdbc-442d62c234c6","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":113,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1799a1ea-e6e4-473d-8dbf-2f0237a2f507","block_type":"box","text":"contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer","page_number":114,"box":{"x":116,"y":87,"width":708,"height":12}},{"id":"407c5ed2-fdbd-47e0-abe5-54347226be43","block_type":"box","text":"significant losses on its investments through a VIE structure with little or no recourse available. Any","page_number":114,"box":{"x":116,"y":102,"width":741,"height":13}},{"id":"acb38fc7-cd49-45b6-bc34-bf5c32889d62","block_type":"box","text":"change in the operations of entities in a VIE structure, the status of VIE contractual arrangements or","page_number":114,"box":{"x":116,"y":118,"width":748,"height":12}},{"id":"4cab5e08-51ae-416c-9b81-446f6547c3ed","block_type":"box","text":"the legal or regulatory environment in China, generally or with respect to specific industries, could","page_number":114,"box":{"x":116,"y":134,"width":729,"height":12}},{"id":"ab339533-8b15-431a-8d81-f9d42c3c9479","block_type":"box","text":"result in significant, and possibly permanent and/or total, losses to a Fund.","page_number":114,"box":{"x":117,"y":149,"width":556,"height":12}},{"id":"1f7d3ef7-b18d-43c4-bdbe-f33ff91c2e26","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that","page_number":114,"box":{"x":116,"y":178,"width":758,"height":12}},{"id":"1c1aa55a-cd1c-4ad7-9e07-3ba6f3eb599c","block_type":"box","text":"such growth rates will recur. Other economic challenges for China include indebtedness, weak","page_number":114,"box":{"x":116,"y":194,"width":706,"height":12}},{"id":"7f8fc25c-88d4-4718-8b31-3f0abf102376","block_type":"box","text":"consumer demand, trade tensions, and an aging population. China continues to face pressure from its","page_number":114,"box":{"x":116,"y":209,"width":763,"height":12}},{"id":"13ee4704-e888-4ee4-84c1-30ee46d127cc","block_type":"box","text":"trading partners over its exporting of its excess industrial capacity and overall approach to economic","page_number":114,"box":{"x":116,"y":225,"width":748,"height":12}},{"id":"56e4067d-6819-44ce-883d-16ceecba74f3","block_type":"box","text":"management. China’s economy is heavily dependent on export growth. Reduction in spending on","page_number":114,"box":{"x":117,"y":240,"width":727,"height":12}},{"id":"bfb551da-9a8f-4aec-842f-4d8e473b7d59","block_type":"box","text":"Chinese products and services, supply chain diversification, institution of additional tariffs, sanctions or","page_number":114,"box":{"x":117,"y":256,"width":765,"height":12}},{"id":"0029a9ab-ac78-40d9-9d03-d027c0b40dc6","block_type":"box","text":"other trade barriers (including as a result of heightened trade tensions between China and the United","page_number":114,"box":{"x":116,"y":271,"width":755,"height":12}},{"id":"e56832d7-899f-4245-8afa-85cde3b8fb3b","block_type":"box","text":"States or in response to actual or alleged Chinese cyber activity) or a downturn in any of the","page_number":114,"box":{"x":116,"y":287,"width":688,"height":12}},{"id":"389ad2d2-b509-4800-af55-31f5d14ebdd3","block_type":"box","text":"economies of China’s key trading partners may have an adverse impact on the Chinese economy and","page_number":114,"box":{"x":116,"y":302,"width":762,"height":12}},{"id":"b998a0ca-844a-4ab1-a791-4d6ceee04fd6","block_type":"box","text":"the companies in which a Fund invests. Certain Chinese companies (which may change from time to","page_number":114,"box":{"x":116,"y":318,"width":753,"height":12}},{"id":"9874a420-96cd-4261-8c88-fa8b3a688085","block_type":"box","text":"time) are directly or indirectly subject to economic or trade restrictions imposed by the U.S. or other","page_number":114,"box":{"x":116,"y":333,"width":741,"height":12}},{"id":"8bcef0e1-f62f-4905-9785-101abbc5ea18","block_type":"box","text":"governments due to national security, human rights or other concerns of such government. For","page_number":114,"box":{"x":116,"y":349,"width":709,"height":12}},{"id":"276b1c08-43e3-4e18-8bca-74e313064264","block_type":"box","text":"example, certain foreign technology companies are subject to U.S. export controls as those companies","page_number":114,"box":{"x":116,"y":364,"width":769,"height":12}},{"id":"4fc56d1f-237d-4a60-a984-8335a2092560","block_type":"box","text":"are believed to pose a risk to U.S. interests. The U.S. also bans imports of goods produced in certain","page_number":114,"box":{"x":116,"y":380,"width":755,"height":12}},{"id":"850ed056-67e4-406e-8a49-117e6be94139","block_type":"box","text":"regions of China or by certain Chinese companies due to concerns about forced labor. Such","page_number":114,"box":{"x":117,"y":395,"width":688,"height":12}},{"id":"1136ab4c-eb53-4549-bcc4-2781d1702bc6","block_type":"box","text":"restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any","page_number":114,"box":{"x":117,"y":411,"width":767,"height":12}},{"id":"f98cfb6c-4dcb-473f-b240-e75c6a6b16b5","block_type":"box","text":"action that targets Chinese financial markets or securities exchanges could interfere with orderly","page_number":114,"box":{"x":116,"y":426,"width":719,"height":12}},{"id":"b99d1933-f6ef-4bdd-8c6a-ed6e63ec3654","block_type":"box","text":"trading, delay settlement or cause market disruptions. Certain companies may be subject to economic","page_number":114,"box":{"x":116,"y":442,"width":762,"height":12}},{"id":"6a1d8632-ba9b-4d55-8fee-adb469be4d1c","block_type":"box","text":"or trade restrictions (but not investment restrictions) imposed by the U.S. or other governments due to","page_number":114,"box":{"x":116,"y":457,"width":761,"height":12}},{"id":"3670d1b6-d389-4f7a-bb11-81628edfb724","block_type":"box","text":"national security, human rights or other concerns of such government. So long as these restrictions do","page_number":114,"box":{"x":117,"y":473,"width":764,"height":12}},{"id":"f47e2d9d-e633-4f61-bd94-908c439224fa","block_type":"box","text":"not include restrictions on investments, the Fund may invest in such companies.","page_number":114,"box":{"x":117,"y":489,"width":599,"height":11}},{"id":"3246eb2d-6b38-4af5-a43e-2ddc8c5f45da","block_type":"box","text":"The tax laws and regulations in the PRC are subject t","page_number":114,"box":{"x":116,"y":518,"width":374,"height":12}},{"id":"6bc81679-9010-403f-91ab-8e010197b934","block_type":"box","text":"to change, including the issuance of authoritative","page_number":114,"box":{"x":490,"y":518,"width":352,"height":12}},{"id":"2122e95b-7088-407d-a487-2aa9ef702db1","block_type":"box","text":"guidance or enforcement, possibly with retroactive e","page_number":114,"box":{"x":116,"y":533,"width":370,"height":12}},{"id":"e67e3c2d-11c0-4be7-aa9c-0ca7271cab62","block_type":"box","text":"ffect. The interpretation, applicability and enforcement","page_number":114,"box":{"x":487,"y":533,"width":386,"height":12}},{"id":"4f1d9019-4cfe-454d-adea-10d58c946f82","block_type":"box","text":"of such laws by PRC tax authorities are not as c","page_number":114,"box":{"x":116,"y":549,"width":341,"height":12}},{"id":"0ac8df7a-b4a2-43ed-acc2-b4beebcf2bff","block_type":"box","text":"onsistent and transparent as those of more developed","page_number":114,"box":{"x":458,"y":549,"width":389,"height":12}},{"id":"4a9de35b-622a-4eab-b703-51b88ef53749","block_type":"box","text":"nations, and may vary over time and from region to","page_number":114,"box":{"x":117,"y":564,"width":362,"height":12}},{"id":"850eb522-1b3b-423f-983b-20c12fa29ce2","block_type":"box","text":"region. The application and enforcement of PRC tax","page_number":114,"box":{"x":479,"y":564,"width":380,"height":12}},{"id":"594745df-2e33-4e9f-8ddb-3694e8d2cb72","block_type":"box","text":"rules could have a significant adverse effect on a Fund and","page_number":114,"box":{"x":117,"y":580,"width":423,"height":12}},{"id":"a20d0260-ffd9-4378-a3f8-655562bcd9ff","block_type":"box","text":"its investors, particularly in relation to capital","page_number":114,"box":{"x":541,"y":580,"width":316,"height":12}},{"id":"9d4b89c9-4bfc-4f8b-ab11-0e352916c279","block_type":"box","text":"gains withholding tax imposed upon non-residents. In","page_number":114,"box":{"x":116,"y":595,"width":383,"height":12}},{"id":"b2c371dc-b966-4f88-aa23-e72a6a03e309","block_type":"box","text":"addition, the accounting, auditing and financial","page_number":114,"box":{"x":500,"y":595,"width":333,"height":12}},{"id":"35604cef-874a-4d31-868d-9432653c3658","block_type":"box","text":"reporting standards and practices applicable to Chinese companies may be less rigorous, and may result in","page_number":114,"box":{"x":117,"y":611,"width":767,"height":12}},{"id":"e4c1c450-7752-453b-8f3d-c0d1675657f8","block_type":"box","text":"significant differences between financial stat","page_number":114,"box":{"x":116,"y":626,"width":313,"height":12}},{"id":"a5111dcb-d57e-4e7d-901d-a1438f51a8d9","block_type":"box","text":"ements prepared in accordance with PRC accounting","page_number":114,"box":{"x":429,"y":626,"width":385,"height":12}},{"id":"ac5a28ca-4500-4cd3-814d-cecfe379611b","block_type":"box","text":"standards and practice and those prepared in acco","page_number":114,"box":{"x":116,"y":642,"width":362,"height":12}},{"id":"6a444775-a338-45f2-9bad-2a7a7729d8de","block_type":"box","text":"rdance with international accounting standards.","page_number":114,"box":{"x":479,"y":642,"width":340,"height":12}},{"id":"ffe1a4ee-bd71-4864-afb1-f90135109876","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the","page_number":114,"box":{"x":117,"y":671,"width":762,"height":12}},{"id":"43cd2c12-c333-4b99-9d6a-37417ae4dec4","block_type":"box","text":"country may be subject to other public health threats, infectious illnesses, diseases or similar issues in","page_number":114,"box":{"x":116,"y":686,"width":757,"height":13}},{"id":"3786a981-bf14-4bae-841a-1fa57f44926b","block_type":"box","text":"the future. Any spread of an infectious illness, public health threat or similar issue could reduce","page_number":114,"box":{"x":116,"y":702,"width":704,"height":12}},{"id":"6cf6eb1b-c130-4152-9a8c-a415c4246bd1","block_type":"box","text":"consumer demand or economic output, result in market closures, travel restrictions or quarantines, and","page_number":114,"box":{"x":116,"y":718,"width":764,"height":11}},{"id":"4459e4e2-9bd2-4eb0-9aac-757f612efd82","block_type":"box","text":"generally have a significant impact on the Chinese economy, which in turn could adversely affect a","page_number":114,"box":{"x":116,"y":733,"width":732,"height":12}},{"id":"03bfdc01-4e1d-4e7c-bc87-54c2da91e3b2","block_type":"box","text":"Fund’s investments.","page_number":114,"box":{"x":117,"y":749,"width":147,"height":9}},{"id":"75c1f643-cf1c-453d-a167-395e7bcfc524","block_type":"box","text":"Risk of Investing through Stock Connect","page_number":114,"box":{"x":116,"y":778,"width":300,"height":12}},{"id":"b1e7b603-3c3f-4493-b0bd-86de7639f5e8","block_type":"box","text":".","page_number":114,"box":{"x":417,"y":786,"width":1,"height":1}},{"id":"a7550161-6a01-4550-b23e-2356d7b984bd","block_type":"box","text":"General.","page_number":114,"box":{"x":117,"y":800,"width":62,"height":10}},{"id":"0f821855-df6d-4d7a-ba01-d27059b45162","block_type":"box","text":"China A-shares are equity securities of companies domiciled in China that trade on Chinese","page_number":114,"box":{"x":186,"y":800,"width":681,"height":12}},{"id":"452a834c-ce25-4db1-9835-884acf60c5db","block_type":"box","text":"stock exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange","page_number":114,"box":{"x":116,"y":816,"width":718,"height":12}},{"id":"5f279463-d669-45e7-8191-8f11a529d77c","block_type":"box","text":"(“SZSE”) and the Beijing Stock Exchange (“BSE”) (“A-shares”). Foreign investment in A-shares on the","page_number":114,"box":{"x":117,"y":831,"width":761,"height":12}},{"id":"4b686db0-56d8-44ac-9f26-2bc7674b0a33","block_type":"box","text":"SSE and SZSE is not permitted, other than pursuant to available exceptions, such as through a","page_number":114,"box":{"x":116,"y":847,"width":713,"height":12}},{"id":"2b20663c-44a0-4a84-ab2c-fead896340f1","block_type":"box","text":"qualified foreign investor approved pursuant to the relevant mainland China laws and regulations as","page_number":114,"box":{"x":116,"y":862,"width":745,"height":12}},{"id":"d1b63672-f2d0-4c1d-8082-ae73496bde3e","block_type":"box","text":"may be promulgated and/or amended from time to time (“QFI”).","page_number":114,"box":{"x":117,"y":878,"width":474,"height":12}},{"id":"80d01e3f-1fdc-4e55-ace7-642fdac71018","block_type":"box","text":"II-55","page_number":114,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"e7973d15-5916-41cd-aa42-d2d3d2a77080","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":114,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b23627b7-3d65-4f9d-b1ae-edb2219f4aeb","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE","page_number":115,"box":{"x":117,"y":87,"width":728,"height":12}},{"id":"94e2446a-11f8-4615-a300-d7462e15b7db","block_type":"box","text":"(“Stock Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect","page_number":115,"box":{"x":117,"y":102,"width":711,"height":13}},{"id":"cf495361-8fb3-442b-ad05-c0f6f73a9068","block_type":"box","text":"program or the Shenzhen-Hong Kong Stock Connect program, as applicable (each, a “Stock Connect”","page_number":115,"box":{"x":117,"y":118,"width":764,"height":12}},{"id":"87d213c2-4463-4273-b0eb-7f78e4f17481","block_type":"box","text":"and collectively, “Stock Connects”). Each Stock Connect is a securities trading and clearing links","page_number":115,"box":{"x":116,"y":134,"width":722,"height":12}},{"id":"e70bcd4e-2285-4137-ab6f-b987f2ecd217","block_type":"box","text":"program established by The Stock Exchange of Hong Kong Limited (“SEHK”), the Hong Kong","page_number":115,"box":{"x":117,"y":149,"width":699,"height":12}},{"id":"d2ba0213-957a-4eb7-97e4-6ba7e5816051","block_type":"box","text":"Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable, and China","page_number":115,"box":{"x":116,"y":165,"width":700,"height":12}},{"id":"210642e1-e4a1-4b50-b849-104cf8acbe30","block_type":"box","text":"Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":115,"box":{"x":116,"y":180,"width":753,"height":12}},{"id":"58b46db1-bf5f-4915-8f82-643116138487","block_type":"box","text":"market access between the PRC and Hong Kong by permitting investors to trade and settle shares on","page_number":115,"box":{"x":117,"y":196,"width":761,"height":12}},{"id":"c6b77ec2-58cc-4d32-85e7-8b072fb4bf2f","block_type":"box","text":"each market through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock","page_number":115,"box":{"x":116,"y":211,"width":746,"height":12}},{"id":"d7c2e378-637a-41b0-83c6-70f66e223d27","block_type":"box","text":"Connect Securities listed on the SSE or SZSE, as applicable, would be effectuated through its Hong","page_number":115,"box":{"x":117,"y":227,"width":747,"height":12}},{"id":"eac758b7-590b-461e-b238-eddf756fafa5","block_type":"box","text":"Kong broker and a securities trading service company established by SEHK.","page_number":115,"box":{"x":117,"y":242,"width":572,"height":12}},{"id":"7dcd1824-1cdd-4039-b3f0-49387d2d52bf","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock","page_number":115,"box":{"x":116,"y":273,"width":703,"height":12}},{"id":"4ef50051-625c-4dac-b7a4-e1432022f4b1","block_type":"box","text":"Connect, trading through a Stock Connect’s Northbound Trading Link is subject to daily investment","page_number":115,"box":{"x":117,"y":289,"width":738,"height":12}},{"id":"2a7ee5e7-88cb-4b47-afd9-f37136a54b61","block_type":"box","text":"quota limitations which require that buy orders for Stock Connect Securities be rejected once the daily","page_number":115,"box":{"x":116,"y":304,"width":761,"height":12}},{"id":"81954f5a-bea8-4ded-b4e6-049e5de3c3fe","block_type":"box","text":"quota is exceeded (although a Fund will be permitted to sell their Stock Connect Securities regardless","page_number":115,"box":{"x":116,"y":320,"width":761,"height":12}},{"id":"87b990d6-82ca-4f52-a00f-3b08b5d59dbd","block_type":"box","text":"of the quota). These limitations may restrict a Fund from investing in Stock Connect Securities on a","page_number":115,"box":{"x":116,"y":335,"width":741,"height":12}},{"id":"9e518aa4-f259-411f-9f5e-09d190726914","block_type":"box","text":"timely basis, which could affect the Fund’s ability to effectively pursue its investment strategy.","page_number":115,"box":{"x":116,"y":351,"width":698,"height":12}},{"id":"bf7b85f2-6add-44c6-b1ed-1fe6c43d3ac7","block_type":"box","text":"Investment quotas are also subject to change. Investment in Stock Connect Securities through a Stock","page_number":115,"box":{"x":117,"y":366,"width":767,"height":12}},{"id":"c76e4e29-b73f-44ab-b7e3-bb05e859f932","block_type":"box","text":"Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund.","page_number":115,"box":{"x":117,"y":382,"width":741,"height":12}},{"id":"1e6d4ba1-1e4b-4a73-8c3d-b5eb893edc1b","block_type":"box","text":"Stock Connect Securities purchased through Stock Connects generally may not be sold or otherwise","page_number":115,"box":{"x":116,"y":397,"width":753,"height":12}},{"id":"2a2b41b5-f76e-4573-8295-1bd597c1d9d9","block_type":"box","text":"transferred other than through Stock Connects in accordance with applicable rules. For example, the","page_number":115,"box":{"x":116,"y":413,"width":752,"height":12}},{"id":"7cb0f82f-4ad1-4777-b0ba-383c1c48ce7a","block_type":"box","text":"PRC regulations require that in order for an investor to sell any Stock Connect Securities on a certain","page_number":115,"box":{"x":117,"y":428,"width":755,"height":12}},{"id":"5ed1264e-f7b8-4d19-8623-d1213664f3d1","block_type":"box","text":"trading day, there must be sufficient Stock Connect Securities in the investor’s account before the","page_number":115,"box":{"x":116,"y":444,"width":730,"height":12}},{"id":"5d37ff1c-b4be-4462-9081-7e2f7944dce7","block_type":"box","text":"market opens on that day. If there are insufficient Stock Connect Securities in the investor’s account,","page_number":115,"box":{"x":117,"y":459,"width":751,"height":12}},{"id":"ad524e73-8a9d-4e3e-8947-b7d04c17978d","block_type":"box","text":"the sell order will be rejected by the SSE or SZSE, as applicable. SEHK carries out pre-trade checking","page_number":115,"box":{"x":116,"y":475,"width":765,"height":12}},{"id":"f5117530-e5fe-4c9b-8f7c-9f8e5ac3b82d","block_type":"box","text":"on sell orders of certain stocks listed on the SSE market (“SSE Securities”) or SZSE market (“SZSE","page_number":115,"box":{"x":116,"y":490,"width":746,"height":12}},{"id":"2a698725-53bd-4a75-bc61-4ea4407e7fd7","block_type":"box","text":"Securities”) of its participants (i.e., stock brokers) to ensure that this requirement is satisfied. While","page_number":115,"box":{"x":116,"y":506,"width":736,"height":12}},{"id":"a6dadce4-389c-4651-b097-9991e2c3ec7b","block_type":"box","text":"shares must be designated as eligible to be traded under a Stock Connect, those shares may also lose","page_number":115,"box":{"x":116,"y":521,"width":770,"height":12}},{"id":"99ea3e74-51ce-4d96-8c7e-41ae59fbe29b","block_type":"box","text":"such designation, and if this occurs, such shares may be sold but cannot be purchased through a","page_number":115,"box":{"x":116,"y":537,"width":728,"height":12}},{"id":"e0b86a0e-0b0e-46a0-a1de-28a6e8fb95ef","block_type":"box","text":"Stock Connect. In addition, Stock Connects will only operate on days when both the Chinese and Hong","page_number":115,"box":{"x":116,"y":552,"width":771,"height":12}},{"id":"f470ab18-a541-4d54-af14-88033f7e5a87","block_type":"box","text":"Kong markets are open for trading, and banking services are available in both markets on the","page_number":115,"box":{"x":117,"y":568,"width":698,"height":12}},{"id":"c4a66164-6b48-479b-9dff-40e423cf6101","block_type":"box","text":"corresponding settlement days. Therefore, an investment in Stock Connect Securities through a Stock","page_number":115,"box":{"x":116,"y":583,"width":763,"height":12}},{"id":"db5b65ea-28ad-4f7e-8985-56ae60aa7b29","block_type":"box","text":"Connect may subject a Fund to a risk of price fluctuations on days when the Chinese market is open,","page_number":115,"box":{"x":117,"y":599,"width":754,"height":12}},{"id":"ca2de968-ed8e-4db3-9973-af2f6dceda3c","block_type":"box","text":"but a Stock Connect is not trading. Moreover, day (turnaround) trading is not permitted on the Stock","page_number":115,"box":{"x":117,"y":614,"width":745,"height":12}},{"id":"48cc3d47-f6bc-4128-8539-5c2f98603838","block_type":"box","text":"Connect Securities market. If an investor buys Stock Connect Securities on day “T,” the investor will","page_number":115,"box":{"x":117,"y":630,"width":746,"height":12}},{"id":"bce265b0-db67-4c40-bd88-5d1b7d6f85f9","block_type":"box","text":"only be able to sell the Stock Connect Securities on or after day T+1. Further, since all trades of Stock","page_number":115,"box":{"x":116,"y":645,"width":763,"height":12}},{"id":"4cb86546-7f5c-43d4-b7ac-4f65fb32832c","block_type":"box","text":"Connect Securities must be settled in RMB, investors must have timely access to a reliable supply of","page_number":115,"box":{"x":117,"y":661,"width":748,"height":12}},{"id":"69b647d4-c01e-4311-9f72-0d6a9e3b571c","block_type":"box","text":"offshore RMB, which cannot be guaranteed. There is also no assurance that RMB will not be subject to","page_number":115,"box":{"x":116,"y":676,"width":765,"height":12}},{"id":"c0f43a4d-c705-44e8-ab6e-7a6cc0e0949f","block_type":"box","text":"devaluation. Any devaluation of RMB could adversely affect a Fund’s investments. If a Fund holds a","page_number":115,"box":{"x":116,"y":692,"width":741,"height":12}},{"id":"f39fa52f-4c99-4f56-8e52-8d7ca2af022c","block_type":"box","text":"class of shares denominated in a local currency other than RMB, the Fund will be exposed to currency","page_number":115,"box":{"x":116,"y":707,"width":760,"height":12}},{"id":"c41b36c5-64ac-4b68-aa91-a46ccfeb2db8","block_type":"box","text":"exchange risk if the Fund converts the local currency into RMB for investments in Stock Connect","page_number":115,"box":{"x":116,"y":723,"width":717,"height":12}},{"id":"51a311a5-ab8d-4b61-bc9c-51b6072b750b","block_type":"box","text":"Securities. A Fund may also incur conversion costs.","page_number":115,"box":{"x":116,"y":738,"width":384,"height":12}},{"id":"a9918ba5-30ba-45ab-8fe0-197cec230eba","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held","page_number":115,"box":{"x":116,"y":769,"width":716,"height":12}},{"id":"65afd66e-97da-4f1e-9cf7-6a05636061fb","block_type":"box","text":"through HKSCC as nominee on behalf of investors. The precise nature and rights of a Fund as the","page_number":115,"box":{"x":116,"y":785,"width":731,"height":12}},{"id":"93ff8177-e9d6-49ee-9ed6-23cfd6f6bcad","block_type":"box","text":"beneficial owner of the SSE Securities or SZSE Securities through HKSCC as nominee is not well","page_number":115,"box":{"x":117,"y":800,"width":725,"height":12}},{"id":"adbc238b-ab36-46ef-bd29-6935c4c32d92","block_type":"box","text":"defined under the PRC laws. There is a lack of a clear definition of, and distinction between, legal","page_number":115,"box":{"x":116,"y":816,"width":722,"height":12}},{"id":"feab0b3e-2e38-4815-8b6e-fd3643040b14","block_type":"box","text":"ownership and beneficial ownership under the PRC laws and there have been few cases involving a","page_number":115,"box":{"x":116,"y":831,"width":748,"height":12}},{"id":"825f7b86-72cb-406f-8846-c1283153c204","block_type":"box","text":"nominee account structure in the PRC courts. The exact nature and methods of enforcement of the","page_number":115,"box":{"x":117,"y":847,"width":740,"height":9}},{"id":"0a049478-5882-4f4d-ada5-6d7201348f33","block_type":"box","text":"rights and interests of a Fund under the PRC laws is also uncertain. In the unlikely event that HKSCC","page_number":115,"box":{"x":117,"y":862,"width":757,"height":12}},{"id":"f6722077-9d85-480c-a011-54c85bf709a0","block_type":"box","text":"becomes subject to winding up proceedings in Hong Kong, there is a risk that the SSE Securities or","page_number":115,"box":{"x":117,"y":878,"width":743,"height":12}},{"id":"f0cf498b-0734-436b-a997-dc750faaecbe","block_type":"box","text":"II-56","page_number":115,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"568e456b-6379-4bee-9af2-8aa815d8aab9","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":115,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"cfe4137f-afff-437e-bb77-60ecae153fa2","block_type":"box","text":"SZSE Securities may not be regarded as held for the beneficial ownership of a Fund or as part of the","page_number":116,"box":{"x":116,"y":87,"width":754,"height":12}},{"id":"e6b859df-601c-4fe0-a458-ad570b9fc89e","block_type":"box","text":"general assets of HKSCC available for general distribution to its creditors. Notwithstanding the fact that","page_number":116,"box":{"x":116,"y":102,"width":770,"height":13}},{"id":"8d84522f-2e1f-4c45-84e2-5720a53bca71","block_type":"box","text":"HKSCC does not claim proprietary interests in the SSE Securities or SZSE Securities held in its","page_number":116,"box":{"x":117,"y":118,"width":714,"height":12}},{"id":"2acd161a-4524-4736-bf17-f1b038d40ecf","block_type":"box","text":"omnibus stock account in the CSDCC, the CSDCC as the share registrar for SSE- or SZSE-listed","page_number":116,"box":{"x":116,"y":134,"width":729,"height":12}},{"id":"357f9706-0061-4459-964d-561d908ca995","block_type":"box","text":"companies will still treat HKSCC as one of the shareholders when it handles corporate actions in","page_number":116,"box":{"x":116,"y":149,"width":722,"height":12}},{"id":"d6023c98-bff9-409b-83b8-37be1e974f44","block_type":"box","text":"respect of such SSE Securities or SZSE Securities. HKSCC monitors the corporate actions affecting","page_number":116,"box":{"x":117,"y":165,"width":749,"height":12}},{"id":"4532c682-7f64-4f75-8bd1-9d5a73be2925","block_type":"box","text":"SSE Securities and SZSE Securities and keeps participants of Central Clearing and Settlement","page_number":116,"box":{"x":116,"y":180,"width":712,"height":12}},{"id":"a4622acc-934c-4f31-84b3-95eddfbe67d5","block_type":"box","text":"System (“CCASS”) informed of all such corporate actions that require CCASS participants to take","page_number":116,"box":{"x":116,"y":196,"width":729,"height":12}},{"id":"7905b23b-25ce-40ac-aa9d-cf209a35be49","block_type":"box","text":"steps in order to participate in them. Investors may only exercise their voting rights by providing their","page_number":116,"box":{"x":116,"y":211,"width":750,"height":12}},{"id":"712fc475-87d5-4d3b-8efe-b26b42962411","block_type":"box","text":"voting instructions to HKSCC through participants of CCASS. All voting instructions from CCASS","page_number":116,"box":{"x":116,"y":227,"width":724,"height":12}},{"id":"9dcddd0d-06f7-4d9b-9298-b4f4cd19d05a","block_type":"box","text":"participants will be consolidated by HKSCC, who will then submit a combined single voting instruction","page_number":116,"box":{"x":117,"y":242,"width":757,"height":12}},{"id":"031d283e-cbda-496a-9631-2e6ce0c4565c","block_type":"box","text":"to the relevant SSE- or SZSE-listed company. As a result, a Fund may suffer difficulties or delays in","page_number":116,"box":{"x":116,"y":258,"width":745,"height":12}},{"id":"ad274032-b5c9-4626-b727-750351b7bfb0","block_type":"box","text":"enforcing its rights in SSE Securities or SZSE Securities.","page_number":116,"box":{"x":116,"y":273,"width":427,"height":12}},{"id":"e9c81ea4-39e3-4df1-a719-9733df29bb4b","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any","page_number":116,"box":{"x":117,"y":304,"width":728,"height":12}},{"id":"a491c64a-2b87-4488-8ede-862df3842a98","block_type":"box","text":"nationality who suffer pecuniary losses as a result of default of a licensed intermediary or authorized","page_number":116,"box":{"x":117,"y":320,"width":747,"height":12}},{"id":"2243a1a4-fa39-4a30-98cc-b67a68da75c0","block_type":"box","text":"financial institution in relation to exchange-traded products in Hong Kong. For defaults occurring on or","page_number":116,"box":{"x":116,"y":335,"width":760,"height":12}},{"id":"f343e3c8-f3f4-43c8-a266-1437685ec631","block_type":"box","text":"after January 1, 2020, Hong Kong’s Investor Compensation Fund covers investors’ losses in relation to","page_number":116,"box":{"x":116,"y":351,"width":769,"height":12}},{"id":"824bbb80-cc5f-4ec6-bbb7-d4445e504ec7","block_type":"box","text":"securities (i) that are traded on the SSE or the SZSE and (ii) in respect of which an order for sale or","page_number":116,"box":{"x":116,"y":366,"width":743,"height":12}},{"id":"90ea1180-65f6-4372-b062-0ee82770d22e","block_type":"box","text":"purchase is permitted to be routed through the Northbound Trading Link of a Stock Connect. On the","page_number":116,"box":{"x":117,"y":382,"width":746,"height":12}},{"id":"f8d43165-33f2-4d9d-aef9-15170165e155","block_type":"box","text":"other hand, since a Fund carries out Northbound trading through securities brokers in Hong Kong but","page_number":116,"box":{"x":116,"y":397,"width":756,"height":12}},{"id":"a346691f-928b-40fd-b002-8ac590407700","block_type":"box","text":"not PRC brokers, it is not protected by the China Securities Investor Protection Fund in the PRC.","page_number":116,"box":{"x":117,"y":413,"width":722,"height":12}},{"id":"5164929d-60d3-4916-8d44-eafa96921c21","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information","page_number":116,"box":{"x":117,"y":444,"width":737,"height":12}},{"id":"14f9f34c-430a-47e3-8eab-6e158c1a500b","block_type":"box","text":"technology capability, risk management and other requirements as may be specified by the relevant","page_number":116,"box":{"x":116,"y":459,"width":746,"height":12}},{"id":"b4df8e87-8937-4d31-afe4-7e797923db28","block_type":"box","text":"exchange and/or clearing house. Further, the “connectivity” in Stock Connects requires routing of","page_number":116,"box":{"x":116,"y":475,"width":725,"height":12}},{"id":"1cdd0e77-b01d-4bc9-9dbc-8809587c3c8b","block_type":"box","text":"orders across the border of Hong Kong and the PRC. This requires the development of new","page_number":116,"box":{"x":116,"y":490,"width":687,"height":12}},{"id":"e8050f32-83c8-4708-96d6-4bcc56e30e61","block_type":"box","text":"information technology systems on the part of SEHK and exchange participants. There is no assurance","page_number":116,"box":{"x":117,"y":506,"width":771,"height":12}},{"id":"9d9e1efb-0c21-4d8f-b171-3ffa95e8c576","block_type":"box","text":"that the systems of SEHK and market participants will function properly or will continue to be adapted","page_number":116,"box":{"x":116,"y":521,"width":757,"height":12}},{"id":"5a4d233e-cf1c-42ba-a92c-1627bc36d864","block_type":"box","text":"to changes and developments in both markets. In the event that the relevant systems fail to function","page_number":116,"box":{"x":116,"y":537,"width":747,"height":12}},{"id":"81a0bb5c-4fea-405f-9afd-70bc7b4c0046","block_type":"box","text":"properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":116,"box":{"x":117,"y":552,"width":667,"height":12}},{"id":"ee767956-6d43-4816-9725-9577da64ef17","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the","page_number":116,"box":{"x":116,"y":583,"width":656,"height":12}},{"id":"f2db3f1a-4130-4de2-9b50-3210efa40b0a","block_type":"box","text":"Shenzhen-Hong Kong Stock Connect program launched in December 2016. Each program does not","page_number":116,"box":{"x":116,"y":599,"width":751,"height":12}},{"id":"7800af04-e1e9-405e-a405-833b48b06750","block_type":"box","text":"have an extensive operating history. New or revised regulations may be issued from time to time by the","page_number":116,"box":{"x":117,"y":614,"width":771,"height":12}},{"id":"759cf40a-9d34-4713-a297-ca16dd030f49","block_type":"box","text":"regulators and stock exchanges in China and Hong Kong in connection with operations, legal","page_number":116,"box":{"x":117,"y":630,"width":695,"height":12}},{"id":"a005c9fa-618f-41cc-a01a-63836d856241","block_type":"box","text":"enforcement and cross-border trades under Stock Connects. In addition, there can be no assurance","page_number":116,"box":{"x":116,"y":645,"width":748,"height":11}},{"id":"47fdb7f1-0d3d-4a96-9f38-4f97561ee565","block_type":"box","text":"that Stock Connect will not be discontinued. A Fund may be adversely affected as a result of such","page_number":116,"box":{"x":116,"y":661,"width":726,"height":12}},{"id":"7787f3ef-5d1c-4054-b89b-56c7a598e55e","block_type":"box","text":"changes. Furthermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":116,"box":{"x":116,"y":676,"width":709,"height":12}},{"id":"e6ce0789-436e-4819-84d3-5fce18597013","block_type":"box","text":"significantly and issues may arise from the differences on an on-going basis. In the event that the","page_number":116,"box":{"x":116,"y":692,"width":722,"height":12}},{"id":"580e695a-a96e-41f3-8a3c-3ff8da38875d","block_type":"box","text":"relevant systems fail to function properly, trading in both markets through Stock Connects could be","page_number":116,"box":{"x":117,"y":707,"width":732,"height":12}},{"id":"c4e63213-aa37-419f-8beb-33c1a736e3d6","block_type":"box","text":"disrupted and a Fund’s ability to achieve its investment objective may be adversely affected. In","page_number":116,"box":{"x":116,"y":723,"width":702,"height":12}},{"id":"18b1d468-3214-4a1f-b742-6f39b6c2a0fe","block_type":"box","text":"addition, a Fund’s investments in Stock Connect Securities through Stock Connects are generally","page_number":116,"box":{"x":116,"y":738,"width":724,"height":12}},{"id":"93397f19-b672-4d7d-a390-404cdd9adfc2","block_type":"box","text":"subject to Chinese securities regulations and listing rules, among other restrictions. Further, different","page_number":116,"box":{"x":116,"y":754,"width":746,"height":12}},{"id":"6e1883a8-1987-47fc-a9a5-5ca1ed9b27f5","block_type":"box","text":"fees, costs and taxes are imposed on foreign investors acquiring Stock Connect Securities through","page_number":116,"box":{"x":116,"y":769,"width":733,"height":12}},{"id":"6183a19e-9f9e-43ce-b09e-586aed8337ab","block_type":"box","text":"Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":116,"box":{"x":116,"y":785,"width":722,"height":12}},{"id":"4ba0dd0c-7a88-4c4d-b5d3-2c2d425d64c4","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":116,"box":{"x":116,"y":800,"width":618,"height":12}},{"id":"7df4547e-85b2-49b5-b6c0-7f2332a295f6","block_type":"box","text":"Suspension Risk","page_number":116,"box":{"x":117,"y":831,"width":125,"height":12}},{"id":"4cc6a611-892c-47dd-a5ac-6daf871e8ad6","block_type":"box","text":". SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at","page_number":116,"box":{"x":242,"y":831,"width":634,"height":12}},{"id":"efb1e9c5-102c-4380-89ad-2ce59a4caa40","block_type":"box","text":"times when the relevant SSE Securities and SZSE Securities may be sold or purchased on the","page_number":116,"box":{"x":116,"y":847,"width":709,"height":12}},{"id":"a24ce19b-abb3-4923-8b0a-b1c822ac3267","block_type":"box","text":"relevant Chinese stock exchange. The SSE Securities and SZSE Securities markets have a higher","page_number":116,"box":{"x":117,"y":862,"width":738,"height":12}},{"id":"80dfb081-356f-4b10-b793-2d54d1d1f6f6","block_type":"box","text":"propensity for trading suspensions than many other global equity markets. Each of the SEHK, SSE and","page_number":116,"box":{"x":117,"y":878,"width":771,"height":12}},{"id":"12693a8f-f053-477e-9a78-078fb7498757","block_type":"box","text":"II-57","page_number":116,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"df351945-418c-421c-8aa8-3fc5383bdbd2","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":116,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1df7c966-da90-4b45-9ef1-cd05fc0b8e97","block_type":"box","text":"SZSE reserves the right to suspend trading of SSE Securities and SZSE Securities purchased on the","page_number":117,"box":{"x":116,"y":87,"width":756,"height":12}},{"id":"8176a35d-5883-4e68-a163-6078f970e759","block_type":"box","text":"Stock Connects if necessary for ensuring an orderly and fair market and ensuring that risks are","page_number":117,"box":{"x":116,"y":102,"width":710,"height":13}},{"id":"778572df-f55a-4051-84d2-c4c4a6cf9385","block_type":"box","text":"managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":117,"box":{"x":117,"y":118,"width":724,"height":12}},{"id":"1e52aa9c-e36b-400d-9f7d-f928adedf38b","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit","page_number":117,"box":{"x":117,"y":134,"width":727,"height":12}},{"id":"eec76098-e798-4175-bed4-c7f7165a02ea","block_type":"box","text":"breakers” and other measures to halt or suspend Northbound trading. Where a suspension in the","page_number":117,"box":{"x":117,"y":149,"width":725,"height":12}},{"id":"3b2d11c8-0dfc-4e3e-b49e-c60d3cdc2a7c","block_type":"box","text":"Northbound trading through Stock Connect is effected, the Fund’s ability to access the PRC market will","page_number":117,"box":{"x":117,"y":165,"width":769,"height":12}},{"id":"d2a4eb8b-4fe7-4974-92e4-525f2508e8ae","block_type":"box","text":"be adversely affected. Trading suspensions in certain stocks could lead to greater market execution","page_number":117,"box":{"x":117,"y":180,"width":745,"height":12}},{"id":"2f9640b3-15b5-4309-b93f-29302a66dab4","block_type":"box","text":"risk and costs for a Fund. The SSE and SZSE currently","page_number":117,"box":{"x":117,"y":196,"width":415,"height":12}},{"id":"d34b6e13-e870-4523-a7ee-3420a32c3016","block_type":"box","text":"apply a daily price limit, generally set at 10%,","page_number":117,"box":{"x":533,"y":196,"width":340,"height":12}},{"id":"64723a29-0ccb-4630-8daa-33711f43bacc","block_type":"box","text":"of the amount of fluctuation permitted in the prices of the relevant SSE Securities and SZSE Securities","page_number":117,"box":{"x":116,"y":211,"width":766,"height":12}},{"id":"89805efa-6899-4396-98a4-983513ac78d5","block_type":"box","text":"during a single trading day. The daily price limit refers to price movements only and does not restrict","page_number":117,"box":{"x":116,"y":227,"width":747,"height":12}},{"id":"a220e673-facb-4743-995e-4fdad8407198","block_type":"box","text":"trading within the relevant limit. There can be no assurance that a liquid market on an exchange will","page_number":117,"box":{"x":116,"y":242,"width":744,"height":12}},{"id":"aa8faf61-6209-4e70-9d77-7eb35c6eee47","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":117,"box":{"x":116,"y":258,"width":598,"height":12}},{"id":"4d56dc92-00ad-4b5f-a591-4f6100172abf","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect","page_number":117,"box":{"x":116,"y":289,"width":567,"height":12}},{"id":"789b09dd-a1be-4f43-a218-ba8b7d1d294f","block_type":"box","text":". A Fund may invest","page_number":117,"box":{"x":683,"y":289,"width":152,"height":12}},{"id":"c6a9fee1-e04f-4632-ac20-dab9a87d5d96","block_type":"box","text":"directly in the domestic bond market in the PRC (the “China Interbank Bond Market”) through the","page_number":117,"box":{"x":116,"y":304,"width":724,"height":12}},{"id":"9cf097a5-e842-4601-aeaf-980754aa5d8e","block_type":"box","text":"northbound trading of Bond Connect (“Bond Connect”). Bond Connect is an initiative launched in July","page_number":117,"box":{"x":117,"y":320,"width":755,"height":12}},{"id":"629bde2d-9ab5-44ff-aae6-c7c4e36bbac3","block_type":"box","text":"2017 for mutual bond market access between the PRC and Hong Kong, established by the China","page_number":117,"box":{"x":116,"y":335,"width":729,"height":12}},{"id":"e304339a-a9bf-4f85-8a9f-8b69486096eb","block_type":"box","text":"Foreign Exchange Trade System & National Interbank Funding Centre (“CFETS”), China Central","page_number":117,"box":{"x":117,"y":351,"width":722,"height":12}},{"id":"baca88f8-981d-419d-ae1d-bc3e65d900de","block_type":"box","text":"Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”), Hong Kong Exchanges","page_number":117,"box":{"x":117,"y":366,"width":752,"height":12}},{"id":"9f8c7274-3ba5-4010-be4a-ecba1487885e","block_type":"box","text":"and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":117,"box":{"x":116,"y":382,"width":699,"height":12}},{"id":"ca0e9829-3fa9-40f2-9b45-c0129d46becc","block_type":"box","text":"regulations in the PRC, eligible foreign investors are allowed to invest in the bonds circulated in the","page_number":117,"box":{"x":117,"y":397,"width":738,"height":12}},{"id":"b2974ee2-7b40-4e89-b959-829c1b50862b","block_type":"box","text":"China Interbank Bond Market through Bond Connect. Eligible foreign investors may submit trade","page_number":117,"box":{"x":117,"y":413,"width":721,"height":12}},{"id":"4da49a91-21a1-4b91-8b2e-75bc75645a0d","block_type":"box","text":"requests for bonds circulated in the China Interbank Bond Market through offshore electronic bond","page_number":117,"box":{"x":117,"y":428,"width":735,"height":12}},{"id":"93d2bac0-03b7-4fad-8df1-b48aa574eb7f","block_type":"box","text":"trading platforms (such as Tradeweb), which will in turn transmit their requests for quotation to CFETS.","page_number":117,"box":{"x":116,"y":444,"width":768,"height":12}},{"id":"5bcf6a41-aa4b-477f-9c08-318b7e21a065","block_type":"box","text":"CFETS will send the requests for quotation to a number of approved onshore dealers (including market","page_number":117,"box":{"x":117,"y":459,"width":770,"height":12}},{"id":"7d3f434c-6c11-43ad-909a-55e96f9e5c12","block_type":"box","text":"makers and others engaged in the market making business) in the PRC. The approved onshore","page_number":117,"box":{"x":117,"y":475,"width":715,"height":12}},{"id":"38bd6505-5a31-4863-8784-4816b12932a2","block_type":"box","text":"dealer(s) will respond to the requests for quotation via CFETS and CFETS will send their responses to","page_number":117,"box":{"x":116,"y":490,"width":765,"height":12}},{"id":"7441a491-2605-461b-89af-27e9b082e8fd","block_type":"box","text":"those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":117,"box":{"x":116,"y":506,"width":759,"height":12}},{"id":"83993452-1ec2-46a0-ab93-ef3aa58f3a11","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":117,"box":{"x":116,"y":521,"width":603,"height":12}},{"id":"7da70522-81cd-4f81-96dc-23cd3b435ff4","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect","page_number":117,"box":{"x":116,"y":552,"width":761,"height":12}},{"id":"cd53ea89-b765-4e00-aa65-5f40e4a27b02","block_type":"box","text":"will be effected through the settlement and custody link between CMU, as an offshore custody agent,","page_number":117,"box":{"x":116,"y":568,"width":755,"height":12}},{"id":"e60cd8ac-1bec-4d35-a049-8fef6da8a0b3","block_type":"box","text":"and CDCC and SCH, as onshore custodians and clearing institutions in the PRC. Under the settlement","page_number":117,"box":{"x":116,"y":583,"width":768,"height":12}},{"id":"dbdc2ac3-f0a1-4f0d-bb39-fe7769dd3ee1","block_type":"box","text":"link, CDCC or SCH will effect gross settlement of confirmed trades onshore and CMU will process","page_number":117,"box":{"x":117,"y":599,"width":730,"height":12}},{"id":"a262d7d3-46ff-4bf0-a77e-dffb83a47684","block_type":"box","text":"bond settlement instructions from CMU members on behalf of eligible foreign investors in accordance","page_number":117,"box":{"x":117,"y":614,"width":757,"height":12}},{"id":"5fbe901f-a264-488f-bc8c-ab583769bcbb","block_type":"box","text":"with its relevant rules. Since the introduction in August 2018 of delivery versus payment (DVP)","page_number":117,"box":{"x":116,"y":630,"width":705,"height":12}},{"id":"d5556d85-b759-49b8-96e7-35076f8be845","block_type":"box","text":"settlement in respect of Bond Connect, the movement of cash and securities is carried out","page_number":117,"box":{"x":116,"y":645,"width":675,"height":12}},{"id":"4db733a6-07f4-4b9e-bf52-f019179d0b22","block_type":"box","text":"simultaneously on a real-time basis. Pursuant to the prevailing regulations in the PRC, CMU, as the","page_number":117,"box":{"x":116,"y":661,"width":738,"height":12}},{"id":"62646ee0-5883-4e6b-bd76-bd31619a666f","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee","page_number":117,"box":{"x":116,"y":676,"width":754,"height":12}},{"id":"dc5b0b4c-52a6-4a0c-81ec-be45cb6051c8","block_type":"box","text":"accounts with the onshore custody agent recognized by the People’s Bank of China (i.e., CDCC and","page_number":117,"box":{"x":116,"y":692,"width":744,"height":12}},{"id":"b9b48463-1638-4877-a2e8-d280f8898cf7","block_type":"box","text":"SCH). All bonds traded by eligible foreign investors through Bond Connect will be registered in the","page_number":117,"box":{"x":116,"y":707,"width":729,"height":12}},{"id":"0e35430d-8212-4284-9538-b3eec369bf8d","block_type":"box","text":"name of CMU, which will hold such bonds as a nominee owner. Therefore, a Fund will be exposed to","page_number":117,"box":{"x":117,"y":723,"width":748,"height":12}},{"id":"68b2dd01-f69a-4b6e-bdae-cc878a943a19","block_type":"box","text":"custody risks with respect to CMU. In the remote event of a CDCC or SCH default, CMU’s liabilities in","page_number":117,"box":{"x":116,"y":738,"width":754,"height":12}},{"id":"dbb3acbf-822a-428b-a346-5a0402f402b1","block_type":"box","text":"Bond Connect bonds under its market contracts with clearing participants will be limited to assisting","page_number":117,"box":{"x":117,"y":754,"width":736,"height":12}},{"id":"e5a7c7ef-02b6-4bca-a4b2-65579d85f618","block_type":"box","text":"clearing participants in pursuing their claims against CDCC or SCH. The Fund may suffer delay in the","page_number":117,"box":{"x":116,"y":769,"width":753,"height":12}},{"id":"7d03021d-4ece-4bfa-aa10-76a4806a38e8","block_type":"box","text":"recovery process or may not fully recover its losses from CDCC or SCH. In addition, as the relevant","page_number":117,"box":{"x":117,"y":785,"width":739,"height":12}},{"id":"2b922e69-ec41-4738-b549-676dbb16583c","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by","page_number":117,"box":{"x":116,"y":800,"width":733,"height":12}},{"id":"06240d77-a6bd-4baf-9196-c2670392d9f4","block_type":"box","text":"third parties, including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or","page_number":117,"box":{"x":116,"y":816,"width":723,"height":12}},{"id":"0a8d442e-028a-4a50-9488-e573f6fdff8b","block_type":"box","text":"errors on the part of such third parties.","page_number":117,"box":{"x":116,"y":831,"width":290,"height":12}},{"id":"eaf68a06-2f07-42c2-b04f-3b932f2aff25","block_type":"box","text":"The precise nature and rights of a Fund as the beneficial owner of the bonds traded in the China","page_number":117,"box":{"x":116,"y":862,"width":720,"height":12}},{"id":"df0d6bd3-480b-423b-b277-790bcec31c41","block_type":"box","text":"Interbank Bond Market through CMU as nominee is not well-defined under PRC law. There is a lack of","page_number":117,"box":{"x":117,"y":878,"width":765,"height":12}},{"id":"546c4fc9-f6e6-4e7f-a5cd-ab49cb5e4233","block_type":"box","text":"II-58","page_number":117,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"ded9efb1-beee-4e6f-a90d-affc9ba7b4ce","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":117,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3db519cc-27f2-4e27-bdca-68bb94e07d94","block_type":"box","text":"a clear definition of, and distinction between, legal ownership and beneficial ownership under PRC law","page_number":118,"box":{"x":116,"y":87,"width":765,"height":12}},{"id":"6b311502-1ea9-48ad-8640-9dd34f894957","block_type":"box","text":"and there have been few cases involving a nominee account structure in the PRC courts. The exact","page_number":118,"box":{"x":116,"y":102,"width":745,"height":13}},{"id":"8e5863b0-885c-4bb4-9eb3-5675b74b9946","block_type":"box","text":"nature and methods of enforcement of the rights and interests of a Fund under PRC law are also","page_number":118,"box":{"x":117,"y":118,"width":722,"height":12}},{"id":"803b5bd3-7496-4a12-b698-ce5f944ae93b","block_type":"box","text":"uncertain.","page_number":118,"box":{"x":117,"y":134,"width":77,"height":9}},{"id":"f1931a91-db52-413e-ad1d-f267ca49d016","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of certain bonds in the China","page_number":118,"box":{"x":117,"y":164,"width":750,"height":12}},{"id":"12594277-cf61-496e-9048-8b4da907e078","block_type":"box","text":"Interbank Bond Market may result in prices of certain bonds traded on such market fluctuating","page_number":118,"box":{"x":117,"y":179,"width":702,"height":12}},{"id":"23c31b08-1e60-4811-bdf1-d26eb9218714","block_type":"box","text":"significantly. A Fund investing in such market is therefore subject to liquidity and volatility risks. The","page_number":118,"box":{"x":116,"y":194,"width":742,"height":12}},{"id":"2f796105-81f4-4846-aa46-71ac8f678551","block_type":"box","text":"bid-ask spreads of the prices of such securities may be large, and a Fund may therefore incur","page_number":118,"box":{"x":117,"y":209,"width":700,"height":12}},{"id":"f80f12cc-5726-456e-b857-085a19cf8cb4","block_type":"box","text":"significant costs and may suffer losses when selling such investments. The bonds traded in the China","page_number":118,"box":{"x":116,"y":224,"width":759,"height":12}},{"id":"dd60470e-de1e-4b28-bdc8-143057d4ba32","block_type":"box","text":"Interbank Bond Market may be difficult or impossible to sell, which may impact a Fund’s ability to","page_number":118,"box":{"x":117,"y":239,"width":722,"height":12}},{"id":"90670920-51eb-4fd6-8e6e-d7364a068544","block_type":"box","text":"acquire or dispose of such securities at their expected prices.","page_number":118,"box":{"x":116,"y":254,"width":460,"height":12}},{"id":"25cf19d3-aa24-466d-b44e-6b5130f8bf23","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks.","page_number":118,"box":{"x":117,"y":284,"width":766,"height":12}},{"id":"ed23b654-a379-40ef-ba28-0d3260e0e80d","block_type":"box","text":"The relevant rules and regulations are subject to change, which may have potential retrospective","page_number":118,"box":{"x":116,"y":299,"width":724,"height":12}},{"id":"24f9dcae-68fd-4b13-b240-643a050bbcdc","block_type":"box","text":"effect, and there can be no assurance that Bond Connect will not be discontinued or abolished.","page_number":118,"box":{"x":116,"y":314,"width":711,"height":11}},{"id":"2e854e38-b75e-452c-b500-c8d52054ca03","block_type":"box","text":"Furthermore, the securities regimes and legal systems of China and Hong Kong differ significantly and","page_number":118,"box":{"x":117,"y":329,"width":764,"height":12}},{"id":"6e656a5c-fcec-4216-b98a-89590ec1f4e2","block_type":"box","text":"issues may arise based on these differences. In the event that the relevant authorities suspend","page_number":118,"box":{"x":117,"y":344,"width":709,"height":12}},{"id":"9d7fd205-5e4d-439f-87b8-5368d5965b2d","block_type":"box","text":"account opening or trading on the China Interbank Bond Market, a Fund’s ability to invest in the China","page_number":118,"box":{"x":116,"y":359,"width":762,"height":12}},{"id":"2bb6f4ef-f110-4d04-835a-95914011f705","block_type":"box","text":"Interbank Bond Market will be adversely affected and limited. In such event, the Fund’s ability to","page_number":118,"box":{"x":117,"y":374,"width":716,"height":12}},{"id":"e0a38ce1-4e9b-4273-b032-bd91c00de549","block_type":"box","text":"achieve its investment objective will be negatively affected and, after exhausting other trading","page_number":118,"box":{"x":116,"y":389,"width":699,"height":12}},{"id":"accd96d5-d4b8-44a7-a156-eeb084a2fc89","block_type":"box","text":"alternatives, the Fund may suffer substantial losses as a result. Further, if Bond Connect is not","page_number":118,"box":{"x":116,"y":404,"width":707,"height":12}},{"id":"425a232a-d0f7-4ad3-b8ed-12c1c01bc40d","block_type":"box","text":"operating, a Fund may not be able to acquire or dispose of bonds through Bond Connect in a timely","page_number":118,"box":{"x":116,"y":419,"width":745,"height":12}},{"id":"8d4095f5-af88-46eb-a705-8b05ac9a2d2e","block_type":"box","text":"manner, which could adversely affect the Fund’s performance.","page_number":118,"box":{"x":117,"y":434,"width":467,"height":12}},{"id":"ef96a4b3-c0a0-4ee3-a13b-c0123e9affd9","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and","page_number":118,"box":{"x":116,"y":464,"width":687,"height":12}},{"id":"e2e3560f-23bd-4dfd-85aa-38473df5e756","block_type":"box","text":"operational systems. There is no assurance that such systems will function properly or will continue to","page_number":118,"box":{"x":116,"y":479,"width":761,"height":12}},{"id":"2d46e5e2-7d1f-41d0-b3d7-e0fa883eb58c","block_type":"box","text":"be adapted to changes and developments in the market. In the event that the relevant systems fail to","page_number":118,"box":{"x":117,"y":494,"width":753,"height":12}},{"id":"b9d7614a-2b51-4590-8d1a-7462389999ed","block_type":"box","text":"function properly, trading through Bond Connect may be disrupted. A Fund’s ability to trade through","page_number":118,"box":{"x":116,"y":509,"width":744,"height":12}},{"id":"2725597c-6268-4469-aa12-869f422feb9d","block_type":"box","text":"Bond Connect (and hence to pursue its investment strategy) may therefore be adversely affected. In","page_number":118,"box":{"x":117,"y":524,"width":749,"height":12}},{"id":"91db94fa-1977-4060-bc0a-ab3737e8b163","block_type":"box","text":"addition, where a Fund invests in the China Interbank Bond Market through Bond Connect, it may be","page_number":118,"box":{"x":116,"y":539,"width":753,"height":12}},{"id":"e57e7bdc-e578-41df-aa74-d8db2dc34560","block_type":"box","text":"subject to risks of delays inherent in the order placing and/or settlement systems.","page_number":118,"box":{"x":116,"y":554,"width":607,"height":12}},{"id":"dec91a79-7ac0-4c91-9784-d94bf1dac592","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not","page_number":118,"box":{"x":117,"y":584,"width":746,"height":12}},{"id":"ba318690-6513-426f-a279-5a1291b7d69c","block_type":"box","text":"freely convertible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed","page_number":118,"box":{"x":116,"y":599,"width":740,"height":12}},{"id":"18fd840b-9fe6-4df0-8a3b-56530fbab043","block_type":"box","text":"that investors will have timely access to a reliable supply of RMB.","page_number":118,"box":{"x":116,"y":614,"width":490,"height":12}},{"id":"31664800-96ff-42ba-82f2-10d9902456ea","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk.","page_number":118,"box":{"x":118,"y":645,"width":309,"height":12}},{"id":"a3a902d0-ae54-413f-b44d-ad8a11f57a6f","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends","page_number":118,"box":{"x":116,"y":667,"width":760,"height":12}},{"id":"72f421a3-f796-43dd-9c7c-b3eb666d355d","block_type":"box","text":"and interests from non-government bonds paid to a non-PRC tax resident enterprise, unless the rate is","page_number":118,"box":{"x":116,"y":682,"width":755,"height":12}},{"id":"a2424581-2135-4b29-b3ca-f7d87bb02d64","block_type":"box","text":"reduced under an applicable tax treaty. From a technical perspective, withholding income tax is also","page_number":118,"box":{"x":117,"y":697,"width":733,"height":12}},{"id":"4c6bab5e-8a7c-4435-adbe-f8347b3f27cb","block_type":"box","text":"applicable to capital gains realized by foreign investors on the disposal of PRC equity interests.","page_number":118,"box":{"x":116,"y":712,"width":697,"height":12}},{"id":"ea29b17d-ec09-4983-af13-11007757a795","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":118,"box":{"x":116,"y":742,"width":729,"height":12}},{"id":"e6affd30-a57a-4f25-9982-b53041c1aeb8","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“Mo","page_number":118,"box":{"x":116,"y":772,"width":375,"height":12}},{"id":"aac06338-3735-41b2-8d9d-8057c9713908","block_type":"box","text":"F”), China Securities Regulatory Commission and the","page_number":118,"box":{"x":493,"y":772,"width":379,"height":12}},{"id":"f55b7724-5b47-4ede-b54b-302709fa84e9","block_type":"box","text":"State Taxation Administration (“STA”), acting with St","page_number":118,"box":{"x":116,"y":787,"width":372,"height":12}},{"id":"6e2b7943-3767-453c-9133-77c29c67e445","block_type":"box","text":"ate Council’s approval, jointly released Circular 79,","page_number":118,"box":{"x":489,"y":787,"width":359,"height":12}},{"id":"5b5fccbc-12bd-4f90-8c86-8e1ea8da43c6","block_type":"box","text":"which temporarily exempts Qualified Foreign Instit","page_number":118,"box":{"x":116,"y":802,"width":356,"height":12}},{"id":"434967f1-479c-4a42-bf31-4f4f591d9878","block_type":"box","text":"utional Investors (“QFIIs”) and Renminbi Qualified","page_number":118,"box":{"x":473,"y":802,"width":352,"height":12}},{"id":"2790f27d-8472-42d8-9110-099760017668","block_type":"box","text":"Foreign Institutional Investors (“RQFIIs”) from tax on","page_number":118,"box":{"x":117,"y":817,"width":369,"height":12}},{"id":"c68ee607-0c72-424f-b4d8-d3037a0cb85c","block_type":"box","text":"capital gains derived from the trading of shares and","page_number":118,"box":{"x":492,"y":817,"width":365,"height":12}},{"id":"bb7c81a4-3967-48ab-a2a0-4c28bf270303","block_type":"box","text":"other equity interest investments on or after No","page_number":118,"box":{"x":116,"y":832,"width":334,"height":12}},{"id":"6a7c3ad9-e543-4708-80e4-be9b75161260","block_type":"box","text":"vember 17, 2014. Subsequently, Circulars 81 and 127 were","page_number":118,"box":{"x":450,"y":832,"width":429,"height":12}},{"id":"c210d82f-5274-4c96-a3bc-fdd3bfa95835","block_type":"box","text":"issued to temporarily exempt tax on capital gains der","page_number":118,"box":{"x":117,"y":847,"width":375,"height":12}},{"id":"36498f42-a4a3-4031-8ebf-ca7b86cf9af3","block_type":"box","text":"ived from trading of equity securities of companies","page_number":118,"box":{"x":493,"y":847,"width":361,"height":12}},{"id":"5420641f-57d9-421d-846b-2b56c4b4ab03","block_type":"box","text":"domiciled in the PRC that trade on Chinese stock exchanges (“A-Shares”) through the Shanghai-Hong","page_number":118,"box":{"x":116,"y":862,"width":734,"height":12}},{"id":"eb8ceb3d-0163-4262-b5ae-bf43b7ffb393","block_type":"box","text":"Kong Stock Connect program or the Shenzhen-Hong Kong Stock Connect program, as applicable (each, a","page_number":118,"box":{"x":117,"y":877,"width":764,"height":12}},{"id":"90b83234-ce56-47af-9a16-cd4e0d8c9994","block_type":"box","text":"II-59","page_number":118,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"2894d39d-6db6-4581-a184-fad6df8d5780","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":118,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d1ade585-ba02-4934-97d3-74158bc328d1","block_type":"box","text":"“Stock Connect” and collectively, “Stock Connects”). The dur","page_number":119,"box":{"x":116,"y":86,"width":431,"height":13}},{"id":"0485df19-9df1-4449-8a93-9a6bcd7263ba","block_type":"box","text":"ation of the temporary exemptions is not stated","page_number":119,"box":{"x":548,"y":86,"width":338,"height":13}},{"id":"5c820b57-1fcf-44be-804e-def7a3bfa92f","block_type":"box","text":"in the circulars and is subject to termination by","page_number":119,"box":{"x":117,"y":102,"width":328,"height":12}},{"id":"1f0e9f13-5d97-48ea-be31-a129b8e76ec9","block_type":"box","text":"the PRC tax authorities w","page_number":119,"box":{"x":445,"y":101,"width":175,"height":10}},{"id":"0417897c-31ba-4ed7-ab41-5d35401b4b58","block_type":"box","text":"with or without notice.","page_number":119,"box":{"x":620,"y":102,"width":159,"height":9}},{"id":"3314f58d-ddfb-4309-a456-76d81a558558","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":119,"box":{"x":116,"y":133,"width":766,"height":12}},{"id":"dbca8837-f6f0-4f3d-a39e-b562ba5e5970","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds","page_number":119,"box":{"x":117,"y":148,"width":742,"height":12}},{"id":"bc4e88b0-18a6-4db1-8594-b4caac96dfe3","block_type":"box","text":"derived from the PRC bond market from November 7, 2018 to November 6, 2021. On November 22,","page_number":119,"box":{"x":116,"y":163,"width":727,"height":11}},{"id":"290e23d0-dcb0-4aed-9f5e-ec895dc91dc2","block_type":"box","text":"2021, the MoF and STA issued Public Notice 34 to extend the temporary exemption from November 7,","page_number":119,"box":{"x":116,"y":178,"width":743,"height":12}},{"id":"0525126f-da79-4602-949d-5a03b9801244","block_type":"box","text":"2021 to December 31, 2025. On January 15, 2026, it was announced via Public Notice No. 5 of 2026 that","page_number":119,"box":{"x":116,"y":193,"width":762,"height":12}},{"id":"ef28fd17-e5dc-4d03-bf0a-2a92087940f4","block_type":"box","text":"the exemption was extended through December 31, 2027.","page_number":119,"box":{"x":116,"y":208,"width":424,"height":12}},{"id":"46b6bcfa-746a-4ac7-a46c-7b5ac097d079","block_type":"box","text":"Value Added Tax (“VAT”) Risk","page_number":119,"box":{"x":118,"y":239,"width":225,"height":13}},{"id":"79a5c20b-e809-45e9-b961-1538fc8dcce7","block_type":"box","text":"k — From May 1, 2016, VAT applies to certain income derived by the","page_number":119,"box":{"x":342,"y":240,"width":511,"height":12}},{"id":"8bab974d-d307-450c-854e-a7c172ab9d60","block_type":"box","text":"Fund, including PRC sourced interest income on non-government bonds and trading gains.","page_number":119,"box":{"x":117,"y":255,"width":681,"height":12}},{"id":"5f5d943f-93b8-4a94-a51e-7a1a191bea69","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":119,"box":{"x":116,"y":286,"width":735,"height":12}},{"id":"02dbbfc0-f611-4ebb-930b-147d75465c7f","block_type":"box","text":"VAT exemptions currently apply to capital gains from trading of QFII and RQFII products, A-Shares","page_number":119,"box":{"x":116,"y":317,"width":741,"height":13}},{"id":"3faa9dab-0700-458f-b551-752a204eba16","block_type":"box","text":"traded on the Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":119,"box":{"x":116,"y":332,"width":699,"height":10}},{"id":"651a9cce-55d3-449e-8583-942ea45a97ed","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign","page_number":119,"box":{"x":116,"y":364,"width":694,"height":12}},{"id":"c94bfc2c-f590-42c1-aa27-f1ab912140b4","block_type":"box","text":"institutional investors are temporarily exempt from VAT with respect to interest income on bonds","page_number":119,"box":{"x":117,"y":379,"width":718,"height":12}},{"id":"19ab0f1e-3cfc-4687-894a-ebc66bfe1932","block_type":"box","text":"derived from the PRC bond market from November 7, 2018 to November 6, 2021. On November 22,","page_number":119,"box":{"x":116,"y":394,"width":750,"height":11}},{"id":"9ac10321-69d6-437b-bcd0-a7542f140b42","block_type":"box","text":"2021, the MoF and STA jointly issued Public Notice 34 to extend the temporary exemption from","page_number":119,"box":{"x":116,"y":409,"width":714,"height":12}},{"id":"cc156d3e-aa61-4bc2-b794-4ba4e902c3dc","block_type":"box","text":"November 7, 2021 to December 31, 2025. However, on July 31, 2025, the MoF and STA jointly issued","page_number":119,"box":{"x":117,"y":424,"width":764,"height":12}},{"id":"ac2f6785-2b0e-43b6-800d-8b6d85ed23ed","block_type":"box","text":"Public Notice No 4 of 2025, stating that VAT will apply with respect to interest income derived from","page_number":119,"box":{"x":117,"y":439,"width":735,"height":12}},{"id":"6015818b-0f4c-458d-ba07-ceed18031754","block_type":"box","text":"treasury bonds, local government bonds and financial bonds issued on or after August 8, 2025. It is","page_number":119,"box":{"x":116,"y":454,"width":742,"height":12}},{"id":"5c9ad28a-f40e-450f-9dfb-fc0807be735d","block_type":"box","text":"understood that Public Notice No 4 of 2025 does not supersede the afore-mentioned exemption for","page_number":119,"box":{"x":117,"y":469,"width":739,"height":12}},{"id":"8781cdf7-188a-4c8b-b504-aadddec40e29","block_type":"box","text":"foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":119,"box":{"x":116,"y":484,"width":668,"height":12}},{"id":"810dea3f-b9b2-46b9-a90c-f586f8bc99ef","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement","page_number":119,"box":{"x":116,"y":515,"width":754,"height":12}},{"id":"2acd5319-a17d-4108-9550-76861b909a1e","block_type":"box","text":"by the PRC tax authorities may result in a loss which could be material to the Fund. There is a risk the","page_number":119,"box":{"x":117,"y":530,"width":761,"height":12}},{"id":"9d16f723-8251-4f7f-aeb5-8b8e2c674abe","block_type":"box","text":"PRC tax authorities may withdraw the temporary tax exemptions in the future and seek to collect taxes","page_number":119,"box":{"x":117,"y":545,"width":765,"height":12}},{"id":"9fe5e2e5-9096-4c42-a4b8-a4b359c481df","block_type":"box","text":"realized on the sale of A-Shares or PRC sourced interest income on non-government bonds received","page_number":119,"box":{"x":117,"y":560,"width":756,"height":12}},{"id":"d43a07aa-e669-4024-b00c-9ca5512d0df2","block_type":"box","text":"by the Fund without giving any prior notice. If the temporary tax exemptions are withdrawn, any taxes","page_number":119,"box":{"x":117,"y":575,"width":755,"height":12}},{"id":"db9a606e-f0e1-4978-b625-f43803c9d187","block_type":"box","text":"may be directly borne by or indirectly passed on to the Fund and may result in a substantial impact to","page_number":119,"box":{"x":117,"y":590,"width":755,"height":12}},{"id":"1d8bae76-055d-4525-ab68-68ded8245965","block_type":"box","text":"its net asset value. As with any net asset value adjustment, investors may be advantaged or","page_number":119,"box":{"x":117,"y":605,"width":687,"height":12}},{"id":"3ab10c54-a27c-42b8-8c89-afdefda23d05","block_type":"box","text":"disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":119,"box":{"x":116,"y":620,"width":763,"height":12}},{"id":"aac79fa6-bd65-4f06-83dd-71aefa3d10d5","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":119,"box":{"x":116,"y":635,"width":494,"height":12}},{"id":"40ebce89-4f28-4994-849d-3664df2299c4","block_type":"box","text":"BlackRock will keep the provisioning policy for tax liability under review and may, in its discretion from","page_number":119,"box":{"x":117,"y":666,"width":752,"height":12}},{"id":"1c8bea6c-3942-47c8-9871-99fadd81ba94","block_type":"box","text":"time to time, make a provision for potential tax liabilities if in its opinion such provision is warranted or","page_number":119,"box":{"x":116,"y":681,"width":751,"height":12}},{"id":"5147f298-e97f-43f4-80d8-8e9c3701f9b1","block_type":"box","text":"as further clarified by the PRC in notifications.","page_number":119,"box":{"x":116,"y":696,"width":339,"height":12}},{"id":"810f2476-5a0e-4876-ba8d-74c2dbada7f6","block_type":"box","text":"Investment in Other Investment Companies.","page_number":119,"box":{"x":116,"y":727,"width":350,"height":12}},{"id":"bc2ce82c-c33d-4fe6-bb29-0daf4ed90a6d","block_type":"box","text":"Each Fund may, subject to applicable law, invest in","page_number":119,"box":{"x":474,"y":727,"width":378,"height":12}},{"id":"3453a345-8e5c-4981-94d0-25486e95d2c2","block_type":"box","text":"other investment companies (including investment companies managed by BlackRock and its","page_number":119,"box":{"x":116,"y":742,"width":694,"height":12}},{"id":"c170ccf9-c121-4d5a-a156-d6d1a046ba1c","block_type":"box","text":"affiliates), including money market funds and ETFs, which are typically open-end funds or unit","page_number":119,"box":{"x":116,"y":757,"width":697,"height":12}},{"id":"02d13eff-c06d-4bfc-9a37-c6024a91622c","block_type":"box","text":"investment trusts listed on a stock exchange. Under Section 12(d)(1)(A) of the Investment Company","page_number":119,"box":{"x":117,"y":772,"width":743,"height":12}},{"id":"ec5e1155-75f4-41dd-a181-96163f34941d","block_type":"box","text":"Act, however, a Fund may invest up to 10% of its total assets in securities of other investment","page_number":119,"box":{"x":116,"y":787,"width":696,"height":12}},{"id":"6c1f3f7c-9302-48b0-9bb8-40713a9e28c5","block_type":"box","text":"companies (measured at the time of such investment). In addition, under Section 12(d)(1)(A) of the","page_number":119,"box":{"x":116,"y":802,"width":734,"height":12}},{"id":"fd36f89a-b0c7-4226-8391-5c68480ebee8","block_type":"box","text":"Investment Company Act a Fund may not acquire securities of an investment company if such","page_number":119,"box":{"x":117,"y":817,"width":698,"height":12}},{"id":"aeea599d-1b7f-485c-8121-873d731454aa","block_type":"box","text":"acquisition would cause the Fund to own more than 3% of the total outstanding voting stock of such","page_number":119,"box":{"x":116,"y":832,"width":745,"height":12}},{"id":"e3e430f5-b727-4628-ac0d-3cc86baaf82b","block_type":"box","text":"investment company and a Fund may not invest in another investment company if such investment","page_number":119,"box":{"x":117,"y":847,"width":739,"height":12}},{"id":"806882cd-b39a-46cb-bb62-6afd5e7c1d6d","block_type":"box","text":"would cause more than 5% of the value of the Fund’s total assets to be invested in securities of such","page_number":119,"box":{"x":116,"y":862,"width":753,"height":10}},{"id":"77807820-6f0e-4d35-934d-303357a2101c","block_type":"box","text":"investment company. (These limits do not restrict a Feeder Fund from investing all of its assets in","page_number":119,"box":{"x":117,"y":877,"width":727,"height":12}},{"id":"3a194f4c-412f-40df-b15d-8e67d902e8fc","block_type":"box","text":"II-60","page_number":119,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"7b957646-8162-47d3-8cc0-0b702f8a3649","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":119,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2f958b2f-1c53-42cc-a521-5c6dea95f91a","block_type":"box","text":"shares of its Master Portfolio.) In addition to the restrictions on investing in other investment companies","page_number":120,"box":{"x":116,"y":86,"width":771,"height":13}},{"id":"331aaa08-b3b0-451d-8bf9-b59a82283293","block_type":"box","text":"discussed above, under Section 12(d)(1)(C) of the Investment Company Act a Fund may not invest in","page_number":120,"box":{"x":116,"y":101,"width":759,"height":13}},{"id":"27fb065b-20c2-4a47-ba1c-8837ef32349a","block_type":"box","text":"a registered closed-end investment company if such investment would cause the Fund and other","page_number":120,"box":{"x":116,"y":116,"width":724,"height":13}},{"id":"59e504fd-542d-464b-b41d-45e31323949f","block_type":"box","text":"BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock","page_number":120,"box":{"x":117,"y":131,"width":760,"height":13}},{"id":"f65a0103-c468-4b10-b3a8-0f42ca66e8ec","block_type":"box","text":"of such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company","page_number":120,"box":{"x":116,"y":146,"width":761,"height":13}},{"id":"580f5b03-a92d-44be-90fe-cd0409a56be0","block_type":"box","text":"Act, these percentage limitations do not apply to investments in affiliated investment companies,","page_number":120,"box":{"x":116,"y":161,"width":719,"height":13}},{"id":"de6d52b9-7e59-4e89-88a5-7a153a1793c2","block_type":"box","text":"including ETFs, subject to certain conditions. In addition, a Fund may be able to rely on certain rules","page_number":120,"box":{"x":117,"y":177,"width":747,"height":12}},{"id":"cf16ac4b-134f-44fd-8e85-b529bdf62c32","block_type":"box","text":"under the Investment Company Act to invest in shares of money market funds or other investment","page_number":120,"box":{"x":117,"y":191,"width":733,"height":12}},{"id":"099b2277-8449-42c9-aec0-8564444ff2bb","block_type":"box","text":"companies beyond the statutory limits noted above, but subject to certain conditions.","page_number":120,"box":{"x":116,"y":207,"width":633,"height":11}},{"id":"ca08d5db-82d3-4484-974b-97c889246c8e","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and","page_number":120,"box":{"x":116,"y":238,"width":723,"height":11}},{"id":"8d67faf8-37cc-40c3-86e5-16cc094d239b","block_type":"box","text":"selection risk.","page_number":120,"box":{"x":116,"y":253,"width":106,"height":9}},{"id":"aa56fa62-e40d-489d-8569-69b8f43a22c4","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an","page_number":120,"box":{"x":116,"y":284,"width":740,"height":12}},{"id":"3820be59-1dd5-439d-b35a-8ff8518667b2","block_type":"box","text":"exchange may at times be acquired at market prices representing premiums to their NAVs. In addition,","page_number":120,"box":{"x":116,"y":300,"width":767,"height":12}},{"id":"c28364ef-0f68-4cf2-9400-295058efeabe","block_type":"box","text":"investment companies held by a Fund that trade on an exchange could trade at a discount from NAV,","page_number":120,"box":{"x":117,"y":315,"width":758,"height":12}},{"id":"aa887d9e-6f47-4b61-b7f5-85ad8817e70c","block_type":"box","text":"and such discount could increase while the Fund holds the shares. If the market price of shares of an","page_number":120,"box":{"x":116,"y":330,"width":756,"height":12}},{"id":"479ce786-2fda-4452-b671-7da5214d6ea1","block_type":"box","text":"exchange-traded investment company decreases below the price that the Fund paid for the shares and","page_number":120,"box":{"x":116,"y":346,"width":771,"height":12}},{"id":"2c5672be-bfdd-4a73-8474-aefc3213a5ed","block_type":"box","text":"the Fund were to sell its shares of such investment company at a time when the market price is lower","page_number":120,"box":{"x":116,"y":361,"width":757,"height":13}},{"id":"4cd08c59-628e-48fc-95e9-c9be6a997211","block_type":"box","text":"than the price at which it purchased the shares, the Fund would experience a loss.","page_number":120,"box":{"x":116,"y":377,"width":617,"height":12}},{"id":"7eac1497-94a7-494c-85c2-c26522127fe6","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment","page_number":120,"box":{"x":117,"y":408,"width":698,"height":12}},{"id":"089f581c-4c3c-4c1d-a7aa-b4ba4d6d9eae","block_type":"box","text":"companies, shareholders would bear both their proportionate share of expenses in the Fund and,","page_number":120,"box":{"x":116,"y":423,"width":727,"height":12}},{"id":"5552fbc6-8deb-4d80-bb48-dfebc3fafcf8","block_type":"box","text":"indirectly, the expenses of such investment companies. Such expenses, both at the Fund level and","page_number":120,"box":{"x":117,"y":439,"width":739,"height":12}},{"id":"23e46145-43b9-4b00-8e9b-767ab57b51ad","block_type":"box","text":"acquired investment company level, would include management and advisory fees, unless such fees","page_number":120,"box":{"x":116,"y":454,"width":753,"height":13}},{"id":"bd9fb7fe-46f2-4216-bde7-17ff9bae9300","block_type":"box","text":"have been waived by BlackRock. Please see the relevant Fund’s Prospectus to determine whether any","page_number":120,"box":{"x":117,"y":470,"width":769,"height":12}},{"id":"a7880a23-ef19-4a16-9cc2-b38d2efdd865","block_type":"box","text":"such management and advisory fees have been waived by BlackRock. Investments by a Fund in","page_number":120,"box":{"x":116,"y":485,"width":724,"height":13}},{"id":"585ea098-9bc4-45b4-97e9-b956aa82cb8d","block_type":"box","text":"wholly owned investment entities created under the laws of certain countries will not be deemed an","page_number":120,"box":{"x":116,"y":501,"width":740,"height":12}},{"id":"b988739b-b95b-4138-b997-387e9256d363","block_type":"box","text":"investment in other investment companies. Pursuant to guidance issued by the staff of the","page_number":120,"box":{"x":117,"y":516,"width":674,"height":13}},{"id":"335445e0-251f-4d82-a195-6e7a0c3f2f7b","block_type":"box","text":"Commission, fees and expenses of money market funds used for the investment of cash collateral","page_number":120,"box":{"x":117,"y":532,"width":733,"height":12}},{"id":"729427e5-976e-45c6-9376-80914806478f","block_type":"box","text":"received in connection with loans of Fund securities are not treated as “acquired fund fees and","page_number":120,"box":{"x":117,"y":547,"width":706,"height":12}},{"id":"f663e0b8-6f08-4d3e-8c9f-d168459113bf","block_type":"box","text":"expenses,” which are fees and expenses charged by other investment companies and pooled","page_number":120,"box":{"x":116,"y":563,"width":701,"height":12}},{"id":"e37e7e6f-6e64-4ce2-b2db-c89d3ada939a","block_type":"box","text":"investment vehicles in which a Fund invests a portion of its assets.","page_number":120,"box":{"x":117,"y":578,"width":498,"height":12}},{"id":"dcf590d5-111a-47f3-b830-c22cc08d7e6c","block_type":"box","text":"To the extent shares of a Fund are held by another f","page_number":120,"box":{"x":116,"y":609,"width":380,"height":13}},{"id":"db870c9a-c3e7-4cc7-8ae3-2988307e8663","block_type":"box","text":"und, the ability of the Fund it","page_number":120,"box":{"x":497,"y":609,"width":205,"height":13}},{"id":"890ce27f-4745-4334-9bcc-bde7b1c7ced1","block_type":"box","text":"self to purchase other","page_number":120,"box":{"x":702,"y":609,"width":163,"height":12}},{"id":"6d4974c2-5df7-4ebf-9a92-52a13d52a68e","block_type":"box","text":"funds may be limited. In addition, a fund-of-funds (","page_number":120,"box":{"x":116,"y":625,"width":365,"height":12}},{"id":"5564261f-90dc-48c4-8b9b-50b6692fd1db","block_type":"box","text":"e.g.","page_number":120,"box":{"x":482,"y":628,"width":25,"height":9}},{"id":"69995be1-b1e2-4489-9a4c-88cb9a48f072","block_type":"box","text":", an investment company that seeks to meet its","page_number":120,"box":{"x":510,"y":625,"width":347,"height":12}},{"id":"a087233e-df4f-44a8-955a-8999fa0b3cec","block_type":"box","text":"investment objective by investing significantly in","page_number":120,"box":{"x":117,"y":640,"width":350,"height":13}},{"id":"47df193e-7d39-42f8-a0d7-171f7f9fcf20","block_type":"box","text":"other investment companies)","page_number":120,"box":{"x":468,"y":640,"width":215,"height":13}},{"id":"c6efc995-6073-464f-8df0-007956976949","block_type":"box","text":"may be limited in its ability","page_number":120,"box":{"x":684,"y":641,"width":195,"height":12}},{"id":"9116d196-cee9-4a45-ac70-28b5370383be","block_type":"box","text":"to purchase underlying funds if such underlying f","page_number":120,"box":{"x":116,"y":656,"width":353,"height":12}},{"id":"dfd3d92a-6b1e-45a0-8864-4e85709ccda3","block_type":"box","text":"unds themselves own shares of underlying funds.","page_number":120,"box":{"x":470,"y":656,"width":364,"height":12}},{"id":"51c5b15b-c84e-4c6a-a77b-1095e1d821ce","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate","page_number":120,"box":{"x":116,"y":687,"width":710,"height":12}},{"id":"8ecfffb1-27b8-4105-8aa3-b605c559dcce","block_type":"box","text":"indirect foreign investment in developing countries, and certain of such countries, such as Thailand,","page_number":120,"box":{"x":117,"y":702,"width":736,"height":13}},{"id":"634ff8a4-e70e-46fa-95c9-b479e6d7247a","block_type":"box","text":"South Korea, Chile and Brazil, have specifically authorized such funds. There also are investment","page_number":120,"box":{"x":116,"y":718,"width":725,"height":12}},{"id":"6412b8bb-5e96-4923-9e0c-2cc30c279211","block_type":"box","text":"opportunities in certain of such countries in pooled vehicles that resemble open-end investment","page_number":120,"box":{"x":116,"y":734,"width":708,"height":11}},{"id":"9daf3fc5-1dd4-4300-85b1-b3722aca80c7","block_type":"box","text":"companies. The restrictions on investments in securities of investment companies set forth above may","page_number":120,"box":{"x":116,"y":749,"width":760,"height":12}},{"id":"07e31df8-2ca6-4078-af8a-45d73b82f75e","block_type":"box","text":"limit opportunities for a Fund to invest indirectly in certain developing countries.","page_number":120,"box":{"x":117,"y":765,"width":585,"height":12}},{"id":"4eeda716-d98c-4725-bf19-9f57abffd443","block_type":"box","text":"Issuer Insolvency Risk.","page_number":120,"box":{"x":116,"y":796,"width":185,"height":12}},{"id":"6f95e10a-0376-4358-8315-8236da9ad71c","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled","page_number":120,"box":{"x":307,"y":796,"width":532,"height":12}},{"id":"a1ca9434-262c-43dd-b387-101b4f822be5","block_type":"box","text":"issuers involves a high degree of credit and market risk, which may be heightened during an economic","page_number":120,"box":{"x":117,"y":811,"width":761,"height":12}},{"id":"2322c7d3-f066-41ff-8bc6-c2d16f69bebe","block_type":"box","text":"downturn or recession. Should an issuer of securities held by a Fund become involved in a bankruptcy","page_number":120,"box":{"x":116,"y":827,"width":765,"height":12}},{"id":"aa9bf953-0d80-4fe5-88dc-df67735a5d4e","block_type":"box","text":"proceeding, reorganization or financial restructuring, a wide variety of considerations make an","page_number":120,"box":{"x":117,"y":842,"width":700,"height":12}},{"id":"a22e4c6d-929d-478f-b39c-3a9b9c68a7c6","block_type":"box","text":"evaluation of the outcome of the Fund’s exposure to the issuer uncertain.","page_number":120,"box":{"x":116,"y":858,"width":548,"height":12}},{"id":"738af736-5de6-484a-a6c8-74edb912a9d9","block_type":"box","text":"II-61","page_number":120,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"645123af-e02a-4ef9-8905-89a0e7b33202","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":120,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b78414b0-2057-43c0-879a-deb81119f8ab","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that","page_number":121,"box":{"x":117,"y":87,"width":769,"height":12}},{"id":"41ee312d-7aa4-4ef6-af6e-fb276a76d362","block_type":"box","text":"a Fund will receive any interest payments on the securities of the issuer. A Fund will be subject to","page_number":121,"box":{"x":116,"y":102,"width":728,"height":13}},{"id":"04fba5bb-e0b0-4453-bfa0-ffe1357e6dd1","block_type":"box","text":"significant uncertainty as to whether the reorganization or restructuring will be completed, and the Fund","page_number":121,"box":{"x":116,"y":118,"width":772,"height":12}},{"id":"b6c18ada-bf57-4e77-92d7-997a3e8b6db8","block_type":"box","text":"may bear certain extraordinary expenses to protect and recover its investment. A Fund will also be","page_number":121,"box":{"x":117,"y":134,"width":735,"height":12}},{"id":"d826e18f-17dc-4f9e-b875-7bcb1038cab0","block_type":"box","text":"subject to significant uncertainty as to when and in what manner and for what value the obligations","page_number":121,"box":{"x":116,"y":149,"width":737,"height":12}},{"id":"3e68a05a-5306-41b4-9106-7c49b3b9caf0","block_type":"box","text":"evidenced by the securities of the issuer held by the Fund will eventually be satisfied.","page_number":121,"box":{"x":116,"y":165,"width":637,"height":12}},{"id":"d58fa7ba-0005-4baa-b3e6-8f1cf3e3ed35","block_type":"box","text":"Even if a plan of reorganization or restructuring is adopted with respect to the securities of the issuer","page_number":121,"box":{"x":117,"y":196,"width":741,"height":12}},{"id":"7f9c22d0-a38d-4869-8ff5-c3b6aab177f9","block_type":"box","text":"held by the Fund, there can be no assurance that the securities or other assets received by a Fund in","page_number":121,"box":{"x":117,"y":211,"width":748,"height":12}},{"id":"86d7dc8c-2dc8-4bc2-9dd9-2704e9d0790c","block_type":"box","text":"connection with such plan of reorganization or restructuring will not have a lower value or income","page_number":121,"box":{"x":116,"y":227,"width":717,"height":12}},{"id":"7dee684e-4c66-4c25-b0e4-3a1024eb6ba2","block_type":"box","text":"potential than may have been anticipated or no value. A Fund may be unable to enforce its claims or","page_number":121,"box":{"x":117,"y":242,"width":742,"height":12}},{"id":"b61169a7-92a8-49e2-b5c6-5233809e1a77","block_type":"box","text":"rights in any collateral or may have its claims or security interest in any collateral challenged, disallowed","page_number":121,"box":{"x":117,"y":258,"width":767,"height":12}},{"id":"bdbb9786-f786-435e-b5ae-c1e2be4f6b3e","block_type":"box","text":"or subordinated to the claims or security interests of other creditors. In addition, amendments to the U.S.","page_number":121,"box":{"x":116,"y":273,"width":772,"height":12}},{"id":"451c4d38-66e5-436c-b238-5c5807a99e0c","block_type":"box","text":"Bankruptcy Code or other relevant laws could alter the expected outcome or introduce greater","page_number":121,"box":{"x":117,"y":289,"width":695,"height":12}},{"id":"30a5df7b-0da6-45d7-9038-0b045c08d1eb","block_type":"box","text":"uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":121,"box":{"x":117,"y":304,"width":716,"height":12}},{"id":"5d52c2bd-edec-4a17-a06e-337b6e87e004","block_type":"box","text":"proceeding, a reorganization or restructuring, the securities of the issuer held by a Fund could be","page_number":121,"box":{"x":117,"y":320,"width":716,"height":12}},{"id":"09a60fcf-5172-4ef9-8aa9-06b96ee521c9","block_type":"box","text":"re-characterized or a Fund may receive different securities or other assets, including equity securities.","page_number":121,"box":{"x":117,"y":335,"width":752,"height":12}},{"id":"0acad637-6b07-4a86-b522-f262c193ece7","block_type":"box","text":"These types of equity securities include, but are not limited to: common stock; preferred stock (including","page_number":121,"box":{"x":116,"y":351,"width":768,"height":12}},{"id":"f76a2ac0-9c81-4ba1-8db0-45e156df062f","block_type":"box","text":"convertible preferred stock); bonds, notes and debentures convertible into common or preferred stock;","page_number":121,"box":{"x":116,"y":366,"width":756,"height":12}},{"id":"7d7810ec-fad7-4e72-ae0d-56c6c57f936d","block_type":"box","text":"stock purchase warrants and rights; equity interests in trusts; and depositary receipts. Equity securities","page_number":121,"box":{"x":116,"y":382,"width":759,"height":12}},{"id":"ec7bf0ab-c915-4911-b201-8bf95cf57893","block_type":"box","text":"are subject to changes in value, and their value may be more volatile than those of other asset classes.","page_number":121,"box":{"x":116,"y":397,"width":764,"height":12}},{"id":"c48e2855-5874-48ef-b70e-e05d3752ecce","block_type":"box","text":"Holders of equity securities are subject to more risk than holders of debt securities because the status of","page_number":121,"box":{"x":117,"y":413,"width":771,"height":12}},{"id":"8e5a1104-cbef-49b9-8f44-c541bcb0f62d","block_type":"box","text":"equity holders is subordinate to debtholders in an issuer’s capital structure. The value of equity","page_number":121,"box":{"x":116,"y":428,"width":701,"height":12}},{"id":"22d639eb-3f34-4f1e-9182-e1fffdd141ad","block_type":"box","text":"securities received by a Fund could decline if the financial condition of the issuer deteriorates or if","page_number":121,"box":{"x":116,"y":444,"width":721,"height":12}},{"id":"11d34a24-898b-4ce5-a636-544dd7908fa5","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":121,"box":{"x":116,"y":459,"width":764,"height":12}},{"id":"2d097b6e-6de3-4462-8b1c-ad1e1076878f","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding,","page_number":121,"box":{"x":116,"y":490,"width":681,"height":12}},{"id":"855901e3-c218-45c3-ab50-4cb800347019","block_type":"box","text":"reorganization or financial restructuring, the Fund may also be subject to additional risks associated with","page_number":121,"box":{"x":117,"y":506,"width":770,"height":12}},{"id":"7368c610-3fcc-4486-b52e-c988fc67208e","block_type":"box","text":"the assets received. One example of assets that a Fund could receive is an interest in one or more","page_number":121,"box":{"x":116,"y":521,"width":730,"height":12}},{"id":"212f4769-b562-45c2-8953-c11575cf5adb","block_type":"box","text":"loans made to the issuer as part of a workout agreed to by a consortium of lienholders and creditors of","page_number":121,"box":{"x":117,"y":537,"width":756,"height":12}},{"id":"328068db-4792-4c3c-a41e-6b5267bf9496","block_type":"box","text":"the issuer. A Fund may receive such interests in loans to the extent permitted by the Investment","page_number":121,"box":{"x":116,"y":552,"width":710,"height":12}},{"id":"3dfe97b7-d2d1-4f50-b3c8-fe6f1b19d5ec","block_type":"box","text":"Company Act.","page_number":121,"box":{"x":117,"y":568,"width":108,"height":12}},{"id":"6731b834-ffae-4e9a-8777-73b2fee52dd0","block_type":"box","text":"Securities or other assets received in a reorganization","page_number":121,"box":{"x":116,"y":599,"width":387,"height":12}},{"id":"bcd1fe33-103a-4776-9dbc-07b009efcec7","block_type":"box","text":"or restructuring typically entail a higher degree of risk","page_number":121,"box":{"x":503,"y":599,"width":380,"height":12}},{"id":"754ff47e-421d-4a2b-8ea2-1a09480ba57f","block_type":"box","text":"than investments in securities of issuers that","page_number":121,"box":{"x":116,"y":614,"width":319,"height":10}},{"id":"94049c74-c687-4c8d-82f8-d5b51cbe3d45","block_type":"box","text":"have not undergone a reorganization or restructuring and may","page_number":121,"box":{"x":436,"y":614,"width":446,"height":12}},{"id":"a1ee1d2e-5482-4adf-81de-56c0fe345397","block_type":"box","text":"be subject to heavy selling or downward pricing pre","page_number":121,"box":{"x":117,"y":630,"width":363,"height":12}},{"id":"b8fadcf2-e98c-44f1-b6af-8f519d2a8f85","block_type":"box","text":"ssure after completion of the reorganization or","page_number":121,"box":{"x":481,"y":630,"width":332,"height":12}},{"id":"8ea842fe-1f5b-418c-ad6f-c3db01212218","block_type":"box","text":"restructuring. The post-reorganization/restructuring assets","page_number":121,"box":{"x":117,"y":645,"width":411,"height":12}},{"id":"f9f79e9a-70e6-4206-88bc-7963db6a5ff6","block_type":"box","text":"and securities may also be illiquid and difficult to","page_number":121,"box":{"x":528,"y":645,"width":351,"height":12}},{"id":"f849a278-e433-4bfd-bdf6-0c4a396cf16e","block_type":"box","text":"sell or value. If a Fund participates in negotiations with","page_number":121,"box":{"x":116,"y":661,"width":384,"height":12}},{"id":"5402d837-e551-4c96-b1e7-f509000f190f","block_type":"box","text":"respect to a plan of reorganization or restructuring","page_number":121,"box":{"x":506,"y":661,"width":353,"height":12}},{"id":"97399a25-9113-43d6-9f50-ca3a63b264a9","block_type":"box","text":"with respect to securities of the issuer held by a","page_number":121,"box":{"x":116,"y":676,"width":336,"height":12}},{"id":"f0a35d10-c620-4717-aed5-c63756e3af7e","block_type":"box","text":"Fund, the Fund also may be restricted from disposing such","page_number":121,"box":{"x":458,"y":676,"width":417,"height":12}},{"id":"ae57001b-daa5-4f7c-8d97-3a8afc20cf8b","block_type":"box","text":"securities for a period of time. If a Fund becomes involved in such proceedings, the Fund may have more","page_number":121,"box":{"x":116,"y":692,"width":747,"height":12}},{"id":"477246ea-eb9a-43c2-9311-f69c78b55f70","block_type":"box","text":"active participation in the affairs of the iss","page_number":121,"box":{"x":116,"y":707,"width":292,"height":12}},{"id":"3742c5a9-ac14-4129-a694-966692aa346b","block_type":"box","text":"uer than that assumed generally by an investor.","page_number":121,"box":{"x":409,"y":707,"width":337,"height":12}},{"id":"7a524487-09d1-4145-8d01-537e682093e2","block_type":"box","text":"Lease Obligations.","page_number":121,"box":{"x":116,"y":738,"width":148,"height":12}},{"id":"5b78bec7-7e73-4aba-98c4-61e0cc3364c0","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase","page_number":121,"box":{"x":270,"y":738,"width":571,"height":12}},{"id":"4ea7e180-4a85-4ae0-945c-693358a80f4c","block_type":"box","text":"contract, or a conditional sales contract (“lease obligations”). The Manager will monitor the credit","page_number":121,"box":{"x":116,"y":754,"width":716,"height":12}},{"id":"66f275f6-251d-4c50-b5ac-da60fa315c98","block_type":"box","text":"standing of each borrower and each entity providing credit support and/or a put option relating to lease","page_number":121,"box":{"x":116,"y":769,"width":761,"height":12}},{"id":"4115e501-4ffc-4bf5-9e66-0222c5c44cec","block_type":"box","text":"obligations.","page_number":121,"box":{"x":116,"y":785,"width":83,"height":12}},{"id":"642b5f4c-e2be-43b3-99a4-50c595ed1a04","block_type":"box","text":"Life Settlement Investments.","page_number":121,"box":{"x":116,"y":816,"width":227,"height":9}},{"id":"cb8a8741-125b-420d-b4bf-7be3ba2f672c","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties,","page_number":121,"box":{"x":349,"y":816,"width":514,"height":12}},{"id":"d8853b9d-c629-40de-b4b5-698e9af63fd1","block_type":"box","text":"such as the Fund, of existing life insurance contracts for more than their cash surrender value but less","page_number":121,"box":{"x":116,"y":831,"width":763,"height":12}},{"id":"85f89a76-ed99-44ba-9783-74f6ed7d72ba","block_type":"box","text":"than the net benefits to be paid under the policies. When a Fund acquires such a contract, it pays the","page_number":121,"box":{"x":116,"y":847,"width":756,"height":12}},{"id":"eaa64157-197e-4c58-b573-4bdd6394e3e2","block_type":"box","text":"policy premiums in return for the expected receipt of the net benefit as the beneficiary under the policy.","page_number":121,"box":{"x":117,"y":862,"width":767,"height":12}},{"id":"8fcb4160-5575-4274-9bd2-f7802b913541","block_type":"box","text":"Investments in these contracts involve certain risks, including liquidity risk, credit risk of the insurance","page_number":121,"box":{"x":117,"y":878,"width":756,"height":12}},{"id":"4e00c6c5-aa72-4b81-8ee2-f058d188662b","block_type":"box","text":"II-62","page_number":121,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"9713ab8d-9c34-4ea4-94d2-0f92e06af855","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":121,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"fb2a3303-1297-4f45-842a-2d0f76025375","block_type":"box","text":"company, and inaccurate estimations of life expectancy of the insured individuals (viators). These","page_number":122,"box":{"x":116,"y":87,"width":729,"height":12}},{"id":"e3c1c804-2dbd-4cfa-82f6-24042afa2b38","block_type":"box","text":"policies may be considered illiquid because they are bought and sold in a secondary market through","page_number":122,"box":{"x":117,"y":103,"width":748,"height":12}},{"id":"c459e149-22bd-4386-bb8e-3b56647115f0","block_type":"box","text":"life settlement agents. Also, in the event of a bankruptcy of the insurance carrier for a policy, the Fund","page_number":122,"box":{"x":117,"y":118,"width":760,"height":12}},{"id":"25f0015f-bc48-403e-a3d9-20d3a57f1dd4","block_type":"box","text":"may receive reduced or no benefits under the contract. A Fund seeks to minimize credit risk by","page_number":122,"box":{"x":117,"y":134,"width":708,"height":12}},{"id":"f63d629e-a46b-4d72-b83a-7402b9ab8449","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund","page_number":122,"box":{"x":117,"y":149,"width":758,"height":12}},{"id":"f3fed628-eed7-4c22-a8e8-da09ec480526","block_type":"box","text":"may encounter losses on its investments if there is an inaccurate estimation of the life expectancies of","page_number":122,"box":{"x":117,"y":165,"width":761,"height":12}},{"id":"b780bdda-0399-41cb-9aea-d79089a81779","block_type":"box","text":"viators. A Fund intends to reduce this life expectancy risk by investing only in contracts where the life","page_number":122,"box":{"x":116,"y":180,"width":754,"height":12}},{"id":"4fc9f032-3ec5-423c-92d9-ed568f7470cc","block_type":"box","text":"expectancy was reviewed by an experienced actuary, as well as by diversifying its investments across","page_number":122,"box":{"x":116,"y":196,"width":763,"height":12}},{"id":"74796d0f-378a-4290-be86-1526156c271b","block_type":"box","text":"viators of varying ages and medical profiles. In addition, it is unclear whether the income from life","page_number":122,"box":{"x":116,"y":211,"width":725,"height":12}},{"id":"074acd72-bc27-4614-b15d-3c5cb8dda1db","block_type":"box","text":"settlements is qualifying income for purposes of the IRS 90% gross income test a Fund must satisfy","page_number":122,"box":{"x":116,"y":227,"width":746,"height":12}},{"id":"e80fcc06-3beb-43a6-830e-7dc38b7aa98f","block_type":"box","text":"each year to qualify as a regulated investment company. A Fund intends to monitor its investments to","page_number":122,"box":{"x":116,"y":242,"width":758,"height":12}},{"id":"f11b7b32-d673-479e-ac96-d2e0fabdd517","block_type":"box","text":"ensure that the Fund remains qualified as a regulated investment company.","page_number":122,"box":{"x":116,"y":258,"width":567,"height":12}},{"id":"723d2290-dd04-4dea-921a-c3e392352546","block_type":"box","text":"Liquidity Risk Management.","page_number":122,"box":{"x":116,"y":289,"width":221,"height":12}},{"id":"43fba56b-37d9-4c09-9cce-795689b63e79","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”)","page_number":122,"box":{"x":338,"y":289,"width":517,"height":12}},{"id":"189aa106-8595-48a9-b88a-860ef9be149d","block_type":"box","text":"requires open-end funds, such as the Funds, to adopt a liquidity risk management program and","page_number":122,"box":{"x":117,"y":304,"width":712,"height":12}},{"id":"f70b83d0-de14-4099-89f6-150a17b58be0","block_type":"box","text":"enhance disclosures regarding fund liquidity. As required by the Liquidity Rule, the Funds have","page_number":122,"box":{"x":116,"y":320,"width":709,"height":12}},{"id":"441c68b6-ec8b-45a8-bec7-25c2e2061919","block_type":"box","text":"implemented a liquidity risk management program (the “Liquidity Program”), and the Boards of","page_number":122,"box":{"x":117,"y":335,"width":704,"height":12}},{"id":"6630c99a-8297-4c26-abb6-8c8336443ba5","block_type":"box","text":"Directors of the Funds, including a majority of the independent Directors, have appointed the Manager","page_number":122,"box":{"x":117,"y":351,"width":762,"height":12}},{"id":"cd755743-eab7-45a2-9f38-c3f5ca581408","block_type":"box","text":"as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity Program, the","page_number":122,"box":{"x":116,"y":366,"width":745,"height":12}},{"id":"26c45a90-cfc5-4820-b042-ee6462e0362a","block_type":"box","text":"Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":122,"box":{"x":117,"y":382,"width":746,"height":12}},{"id":"0046b680-291d-456a-8345-da7161a2977b","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid","page_number":122,"box":{"x":117,"y":397,"width":750,"height":12}},{"id":"8b7e48a1-a786-4dbe-987a-b3f0dab33fe0","block_type":"box","text":"investment” or “illiquid investment.” The Liquidity Rule defines “liquidity risk” as the risk that a Fund","page_number":122,"box":{"x":117,"y":413,"width":736,"height":12}},{"id":"72b5b18b-1880-45ef-8d73-658e1f417f20","block_type":"box","text":"could not meet requests to redeem shares issued by the Fund without significant dilution of the","page_number":122,"box":{"x":116,"y":428,"width":709,"height":12}},{"id":"fc6763a1-db07-497a-b3ae-b1bbd55246b1","block_type":"box","text":"remaining investors’ interests in the Fund. The liquidity of a Fund’s portfolio investments is determined","page_number":122,"box":{"x":117,"y":444,"width":762,"height":12}},{"id":"79125239-dbbf-45e5-b814-7f7590d17976","block_type":"box","text":"based on relevant market, trading and investment-specific considerations under the Liquidity Program.","page_number":122,"box":{"x":117,"y":459,"width":764,"height":12}},{"id":"48fcfeb1-1438-4c44-a5dd-f6ea43302a6f","block_type":"box","text":"To the extent that an investment is deemed to be an illiquid investment or a less liquid investment, a","page_number":122,"box":{"x":116,"y":475,"width":747,"height":12}},{"id":"13bdd294-f0ed-4ad6-b1ed-42f1ae59ac30","block_type":"box","text":"Fund can expect to be exposed to greater liquidity risk.","page_number":122,"box":{"x":117,"y":490,"width":411,"height":12}},{"id":"b1e9e680-014b-419e-99f6-a58bf682aa4a","block_type":"box","text":"Master Limited Partnerships.","page_number":122,"box":{"x":116,"y":521,"width":230,"height":12}},{"id":"700ad99c-0292-446b-9f49-35de5435453b","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships","page_number":122,"box":{"x":347,"y":521,"width":538,"height":12}},{"id":"5d959401-3eb5-4867-8dc7-c349c50932e1","block_type":"box","text":"(“MLPs”) which are limited partnerships or limited liability companies taxable as partnerships. MLPs","page_number":122,"box":{"x":117,"y":537,"width":741,"height":12}},{"id":"5a4ab828-1dee-4749-bbbb-bdcc7983b177","block_type":"box","text":"may derive income and gains from the exploration, development, mining or production, processing,","page_number":122,"box":{"x":117,"y":552,"width":739,"height":12}},{"id":"b4d09b78-9570-4f55-8b44-14b55872fad8","block_type":"box","text":"refining, transportation (including pipelines transporting gas, oil, or products thereof), or the marketing","page_number":122,"box":{"x":117,"y":568,"width":758,"height":12}},{"id":"79d0f20a-676e-407a-827e-7fabdf1bbffb","block_type":"box","text":"of any mineral or natural resources. MLPs generally have two classes of owners, the general partner","page_number":122,"box":{"x":116,"y":583,"width":752,"height":12}},{"id":"7f2967e4-874e-4147-8d6d-cae7a2c13aab","block_type":"box","text":"and limited partners. When investing in an MLP, a Fund intends to purchase publicly traded common","page_number":122,"box":{"x":116,"y":599,"width":753,"height":12}},{"id":"a510efa2-d61a-4c9e-b49e-b5c060b58d3b","block_type":"box","text":"units issued to limited partners of the MLP. The general partner is typically owned by a major energy","page_number":122,"box":{"x":117,"y":614,"width":749,"height":12}},{"id":"50a43a36-426e-4f9a-a637-a2ef8ee8c0b8","block_type":"box","text":"company, an investment fund, the direct management of the MLP or is an entity owned by one or more","page_number":122,"box":{"x":116,"y":630,"width":769,"height":12}},{"id":"19850e87-a6c2-492f-b946-915c3c4c64d5","block_type":"box","text":"of such parties. The general partner may be structured as a private or publicly traded corporation or","page_number":122,"box":{"x":116,"y":645,"width":744,"height":12}},{"id":"38151717-4196-451b-a96a-b706af4cd4e5","block_type":"box","text":"other entity. The general partner typically controls the operations and management of the MLP through","page_number":122,"box":{"x":116,"y":661,"width":762,"height":12}},{"id":"4006f5d3-5054-4526-8dc9-3108c8a4da50","block_type":"box","text":"an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and","page_number":122,"box":{"x":116,"y":676,"width":683,"height":12}},{"id":"587ecbfe-e518-452d-8dc1-1ff8a5b5e135","block_type":"box","text":"subordinated units. Limited partners own the remainder of the partnership, through ownership of","page_number":122,"box":{"x":116,"y":692,"width":714,"height":12}},{"id":"ed35d61c-1864-4bde-bf39-006ed8321af0","block_type":"box","text":"common units, and have a limited role in the partnership’s operations and management.","page_number":122,"box":{"x":116,"y":707,"width":652,"height":12}},{"id":"6438cb3d-7603-4647-b127-6dca16cef88e","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to","page_number":122,"box":{"x":117,"y":738,"width":764,"height":12}},{"id":"b26c9e2b-b6a8-4bde-9a50-eb67f0b1bb7b","block_type":"box","text":"receive quarterly cash distributions up to an established minimum amount (“minimum quarterly","page_number":122,"box":{"x":117,"y":754,"width":701,"height":12}},{"id":"911bc008-af58-45fb-bea2-34560cfc8768","block_type":"box","text":"distributions” or “MQD”). Common and general partner interests also accrue arrearages in distributions","page_number":122,"box":{"x":116,"y":769,"width":762,"height":12}},{"id":"8b1adf73-0189-4139-88fc-614bd1a75df5","block_type":"box","text":"to the extent the MQD is not paid. Once common and general partner interests have been paid,","page_number":122,"box":{"x":116,"y":785,"width":708,"height":12}},{"id":"13a81795-1396-4781-81e7-4e9a4e1ce691","block_type":"box","text":"subordinated units receive distributions of up to the MQD; however, subordinated units do not accrue","page_number":122,"box":{"x":116,"y":800,"width":750,"height":12}},{"id":"6d2d6f04-0484-48af-87fe-1cd7f918fe74","block_type":"box","text":"arrearages. Distributable cash in excess of the MQD paid to both common and subordinated units is","page_number":122,"box":{"x":116,"y":816,"width":743,"height":12}},{"id":"fbd86d9d-dc3a-4ea4-8d61-e664a02df5d8","block_type":"box","text":"distributed to both common and subordinated units generally on a pro rata basis. The general partner","page_number":122,"box":{"x":116,"y":831,"width":757,"height":12}},{"id":"6dd631df-b28a-43fc-b228-d81e3a9b4970","block_type":"box","text":"is also eligible to receive incentive distributions if the general partner operates the business in a","page_number":122,"box":{"x":117,"y":847,"width":712,"height":12}},{"id":"22d8f8fc-f1c4-483f-baaa-015daca0c68b","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the","page_number":122,"box":{"x":117,"y":862,"width":751,"height":12}},{"id":"c1596f60-7973-4f3a-9a97-91011c72d7e0","block_type":"box","text":"general partner increases cash distributions to the limited partners, the general partner receives an","page_number":122,"box":{"x":116,"y":878,"width":739,"height":12}},{"id":"1323b091-4038-4b37-ab0b-07f071c3b0fb","block_type":"box","text":"II-63","page_number":122,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"aa745ec8-f93c-4a41-abdb-9caf0486009b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":122,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2a404bfa-ff08-4efe-9538-3224b47461fc","block_type":"box","text":"increasingly higher percentage of the incremental cash distributions. A common arrangement provides","page_number":123,"box":{"x":117,"y":87,"width":764,"height":12}},{"id":"d80dff78-1931-476a-9001-d8d216e3c4b5","block_type":"box","text":"that the general partner can reach a tier where it receives 50% of every incremental dollar paid to","page_number":123,"box":{"x":116,"y":102,"width":727,"height":13}},{"id":"46672f15-b863-4771-a80d-1720b0ff2a59","block_type":"box","text":"common and subordinated unit holders. These incentive distributions encourage the general partner to","page_number":123,"box":{"x":116,"y":118,"width":767,"height":12}},{"id":"e5e4a3b9-f554-4f02-941a-b07b2bd1247e","block_type":"box","text":"streamline costs, increase capital expenditures and acquire assets in order to increase the","page_number":123,"box":{"x":116,"y":134,"width":676,"height":11}},{"id":"7390e9da-b2e9-4270-9b44-d8d5e3b3cb83","block_type":"box","text":"partnership’s cash flow and raise the quarterly cash distribution in order to reach higher tiers. Such","page_number":123,"box":{"x":117,"y":149,"width":736,"height":12}},{"id":"9b025f94-a901-48ed-ac77-b965e8d721e2","block_type":"box","text":"results benefit all security holders of the MLP.","page_number":123,"box":{"x":117,"y":165,"width":343,"height":12}},{"id":"ceb6ecc9-5769-415e-9197-e1880a78f10d","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and","page_number":123,"box":{"x":117,"y":196,"width":748,"height":11}},{"id":"c730e9b1-5532-4e31-b0ff-3cee4a82be42","block_type":"box","text":"traded on U.S. securities exchanges, with their value fluctuating predominantly based on prevailing","page_number":123,"box":{"x":116,"y":211,"width":739,"height":12}},{"id":"8421f7ed-1a9f-45ab-8307-87c292d46da4","block_type":"box","text":"market conditions and the success of the MLP. Certain Funds intend to purchase common units in","page_number":123,"box":{"x":117,"y":227,"width":733,"height":11}},{"id":"1ac53466-7718-4d5d-8678-baac5029c9ac","block_type":"box","text":"market transactions. Unlike owners of common stock of a corporation, owners of common units have","page_number":123,"box":{"x":117,"y":242,"width":752,"height":12}},{"id":"c176506c-4859-415a-92b6-7041ccf1f30c","block_type":"box","text":"limited voting rights and have no ability to annually elect directors. In the event of liquidation, common","page_number":123,"box":{"x":117,"y":258,"width":758,"height":12}},{"id":"321f86a4-26f6-471e-94f3-0bc14bf70245","block_type":"box","text":"units have preference over subordinated units, but not over debt or preferred units, to the remaining","page_number":123,"box":{"x":117,"y":273,"width":744,"height":12}},{"id":"10a1c8d1-5958-427c-9447-ce0e9a919ba6","block_type":"box","text":"assets of the MLP.","page_number":123,"box":{"x":116,"y":289,"width":144,"height":9}},{"id":"7b8eee42-4bab-4970-9c9f-19313ef5adc6","block_type":"box","text":"Merger Transaction Risk.","page_number":123,"box":{"x":116,"y":320,"width":200,"height":12}},{"id":"467f9ecb-b035-4b7a-849e-f1489aec7d57","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger","page_number":123,"box":{"x":317,"y":320,"width":531,"height":12}},{"id":"9a9c4b8b-6cae-4cfa-8624-cda6a2c0b77e","block_type":"box","text":"transaction prior to the consummation of such transaction. In that circumstance, a Fund would expect","page_number":123,"box":{"x":116,"y":335,"width":757,"height":12}},{"id":"83712a04-fcae-40a5-bc02-655f03233ce3","block_type":"box","text":"to receive an amount (whether in cash, stock of the acquiring company or a combination of both) in","page_number":123,"box":{"x":116,"y":351,"width":740,"height":12}},{"id":"c027ffe4-52d3-4bcb-b429-290b2287b875","block_type":"box","text":"excess of the purchase price paid by the Fund for the target company’s stock. However, a Fund is","page_number":123,"box":{"x":116,"y":366,"width":733,"height":12}},{"id":"a575dc71-1c7b-4bab-8418-5add97a02a78","block_type":"box","text":"subject to the risk that the merger transaction may be canceled, delayed or restructured, in which case","page_number":123,"box":{"x":116,"y":382,"width":766,"height":12}},{"id":"52323873-0587-44e0-ad0a-897cb34f25c9","block_type":"box","text":"a Fund’s holding of the target company’s stock may not result in any profit for the Fund and may lose","page_number":123,"box":{"x":116,"y":397,"width":754,"height":12}},{"id":"9339b3e3-b991-4c6a-8aaf-ca099b914e1a","block_type":"box","text":"significant value.","page_number":123,"box":{"x":116,"y":413,"width":129,"height":12}},{"id":"0e9b4653-fcc7-47d5-8c23-88699215fb41","block_type":"box","text":"Money Market Obligations of Domestic Banks,","page_number":123,"box":{"x":116,"y":444,"width":355,"height":12}},{"id":"dd64fc90-e5df-46ea-9ca9-23a9dcba4c51","block_type":"box","text":"Foreign Banks and Foreign Branches of U.S. Banks.","page_number":123,"box":{"x":472,"y":444,"width":404,"height":12}},{"id":"5dd9c6f7-19cf-401d-9a34-e61b1143c651","block_type":"box","text":"Certain Funds may purchase bank obligations, such as","page_number":123,"box":{"x":117,"y":459,"width":396,"height":12}},{"id":"04dd3d57-c5c3-4c23-b6e1-ede637c771dd","block_type":"box","text":"certificates of deposit, notes, bankers’ acceptances","page_number":123,"box":{"x":513,"y":459,"width":367,"height":12}},{"id":"15b23dc0-5b61-4ad7-b771-7a8ddc4ca81e","block_type":"box","text":"and time deposits, including instruments issued or suppo","page_number":123,"box":{"x":116,"y":475,"width":403,"height":12}},{"id":"9340544c-229e-4a28-bff4-3dd9299e8746","block_type":"box","text":"rted by the credit of U.S. or foreign banks or","page_number":123,"box":{"x":521,"y":475,"width":315,"height":12}},{"id":"ceb34f08-f1b1-4a5a-9480-0dbb88510f00","block_type":"box","text":"savings institutions having total assets at the time","page_number":123,"box":{"x":116,"y":490,"width":356,"height":12}},{"id":"228d3bf4-7a5a-406b-a295-6f080ebed225","block_type":"box","text":"of purchase in excess of $1 billion. These obligations may","page_number":123,"box":{"x":472,"y":489,"width":415,"height":13}},{"id":"1b43379f-0a67-48fa-86c2-dce27aed97b8","block_type":"box","text":"be general obligations of the parent bank","page_number":123,"box":{"x":117,"y":506,"width":290,"height":12}},{"id":"46a6a41f-27c1-4f42-ba02-2adbf87c6e9a","block_type":"box","text":"k or may be limited to the issuing branch or subsidiary by the terms","page_number":123,"box":{"x":407,"y":506,"width":473,"height":12}},{"id":"1715cdd6-e2d1-4e7e-a79e-5fdb2e4cf5e9","block_type":"box","text":"of a specific obligation or by gov","page_number":123,"box":{"x":116,"y":521,"width":228,"height":12}},{"id":"dd19a35c-fb01-4fc8-b030-a130934d9926","block_type":"box","text":"ernment regulation. The assets of","page_number":123,"box":{"x":344,"y":521,"width":244,"height":12}},{"id":"b2a3ffef-b970-493f-bf36-466d5a5ec433","block_type":"box","text":"a bank or savings institution will be","page_number":123,"box":{"x":588,"y":521,"width":251,"height":12}},{"id":"1ca3316b-8e75-4789-9407-617075b12159","block_type":"box","text":"deemed to include the assets of its domestic and fore","page_number":123,"box":{"x":116,"y":537,"width":380,"height":9}},{"id":"2f1daf87-bdb9-4fec-bae4-9ecb20d26615","block_type":"box","text":"ign branches for purposes of a Fund’s investment","page_number":123,"box":{"x":497,"y":537,"width":356,"height":12}},{"id":"8e919a35-9638-4950-b32a-aab1bb39a2b2","block_type":"box","text":"policies. Investments in short-term bank obligations","page_number":123,"box":{"x":117,"y":552,"width":368,"height":12}},{"id":"5c6013ed-3bdf-4562-9209-10cd068c5114","block_type":"box","text":"may include obligations of foreign banks and domestic","page_number":123,"box":{"x":485,"y":552,"width":390,"height":12}},{"id":"ce9f3994-4cac-4a84-ba65-29e83d91eca3","block_type":"box","text":"branches of foreign banks, and also foreign branches of domestic banks.","page_number":123,"box":{"x":117,"y":568,"width":521,"height":12}},{"id":"7246ddea-f7ef-44a6-88ca-c01ad3bc5a73","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of","page_number":123,"box":{"x":116,"y":599,"width":727,"height":12}},{"id":"32d0a797-6341-4bc9-a58f-aaafad1616f4","block_type":"box","text":"domestic or foreign corporations and banks, and may acquire commercial obligations issued by","page_number":123,"box":{"x":116,"y":614,"width":713,"height":12}},{"id":"d3d13434-29ed-4110-ab21-55ef724e8626","block_type":"box","text":"Canadian corporations and Canadian counterparts of U.S. corporations, as well as Europaper, which is","page_number":123,"box":{"x":117,"y":630,"width":769,"height":12}},{"id":"54279a6d-81cc-4d71-80e8-7d65e20c4435","block_type":"box","text":"U.S. dollar-denominated commercial paper of a foreign issuer.","page_number":123,"box":{"x":117,"y":645,"width":466,"height":12}},{"id":"9bae4c68-7c15-406f-b26e-0c904fa0381b","block_type":"box","text":"Money Market Securities.","page_number":123,"box":{"x":116,"y":676,"width":201,"height":12}},{"id":"389302f9-d35f-4ee7-8291-38e1ef73781e","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S.","page_number":123,"box":{"x":323,"y":676,"width":553,"height":12}},{"id":"f66fbb8b-1bb2-4231-aa88-025e2b1a826f","block_type":"box","text":"dollar-denominated instruments, such as government, bank, commercial and other obligations that are","page_number":123,"box":{"x":116,"y":692,"width":760,"height":12}},{"id":"ff9a4519-a853-4dc6-8820-26942e01fa70","block_type":"box","text":"available in the money markets. In particular, the Funds may invest in:","page_number":123,"box":{"x":116,"y":707,"width":519,"height":12}},{"id":"6faa6499-2e46-403a-9ff1-393fbb28ea57","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks","page_number":123,"box":{"x":150,"y":738,"width":729,"height":12}},{"id":"f7f10668-bcd5-4816-ab9c-34275284095a","block_type":"box","text":"or savings institutions with total assets in excess of $1 billion (including obligations of foreign","page_number":123,"box":{"x":184,"y":753,"width":684,"height":13}},{"id":"5f8f9f35-1ef2-493f-9418-4330263715aa","block_type":"box","text":"branches of such banks);","page_number":123,"box":{"x":184,"y":769,"width":186,"height":12}},{"id":"524de98a-8d84-4cf6-88d2-8b878f0084cf","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign","page_number":123,"box":{"x":150,"y":792,"width":728,"height":13}},{"id":"ca869978-0e8b-49b0-985f-40b9087661dd","block_type":"box","text":"corporations and other issuers rated (at the time of purchase) A-2 or higher by S&P, Prime-2","page_number":123,"box":{"x":184,"y":808,"width":686,"height":12}},{"id":"8c5e329b-d55f-4ca9-8376-574c7022f5fa","block_type":"box","text":"or higher by Moody’s or F-2 or higher by Fitch, as well as high quality corporate bonds rated","page_number":123,"box":{"x":184,"y":824,"width":681,"height":12}},{"id":"28e53396-de80-4230-b864-6fe51d631d4a","block_type":"box","text":"(at the time of purchase) A or higher by those rating agencies;","page_number":123,"box":{"x":184,"y":839,"width":465,"height":12}},{"id":"3463e7c2-5b0b-4bdd-8d09-a95e6e8a9863","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments","page_number":123,"box":{"x":150,"y":862,"width":726,"height":12}},{"id":"3ed04bb0-f970-404f-92ae-7d6faa752006","block_type":"box","text":"described in (b) above as determined by the Fund’s Manager;","page_number":123,"box":{"x":184,"y":878,"width":463,"height":12}},{"id":"b2738397-3045-49bc-9f3f-fdd05604f1cf","block_type":"box","text":"II-64","page_number":123,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"db40ba23-eb40-4df2-90d2-c8a06bf5f11a","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":123,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9348302f-424d-42e5-b6ad-6d64dcbc6937","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment","page_number":124,"box":{"x":150,"y":87,"width":730,"height":12}},{"id":"1a73b07b-d903-4497-a8ae-0385f3be0092","block_type":"box","text":"purchase obligations and credit card receivables);","page_number":124,"box":{"x":184,"y":102,"width":374,"height":13}},{"id":"b2022d74-32d3-446a-bb25-43e4fdf20a99","block_type":"box","text":"(e) securities issued or guaranteed as to principal and interest by the U.S. Government or by its","page_number":124,"box":{"x":150,"y":126,"width":722,"height":12}},{"id":"5d91c5db-1610-4ff8-8470-27edce6ed633","block_type":"box","text":"agencies or authorities and related custodial receipts;","page_number":124,"box":{"x":184,"y":141,"width":401,"height":12}},{"id":"0df0b686-649e-494f-b210-258d0b89a312","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political","page_number":124,"box":{"x":150,"y":165,"width":719,"height":12}},{"id":"f8299c4b-b458-4a11-a6a5-b11469c1322c","block_type":"box","text":"subdivisions, agencies or authorities;","page_number":124,"box":{"x":184,"y":180,"width":279,"height":12}},{"id":"511d89da-6af2-47fb-a6a6-fd65401269ac","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":124,"box":{"x":150,"y":203,"width":561,"height":12}},{"id":"67a138b4-3afd-4b96-a311-7296147c0fb0","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":124,"box":{"x":150,"y":227,"width":560,"height":12}},{"id":"49238aff-1300-4b0d-9072-24a661f728b2","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":124,"box":{"x":150,"y":250,"width":469,"height":12}},{"id":"d06037a9-9b02-4e63-a755-292f33c745fb","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S.","page_number":124,"box":{"x":150,"y":273,"width":736,"height":12}},{"id":"449943a7-335f-445f-933e-bcc7665c75c7","block_type":"box","text":"Government or one of its agencies or authorities or which otherwise depend directly or","page_number":124,"box":{"x":184,"y":289,"width":646,"height":12}},{"id":"fc8d07d4-ed6d-4db1-9d03-0eb85753560d","block_type":"box","text":"indirectly on the credit of the United States;","page_number":124,"box":{"x":184,"y":304,"width":325,"height":12}},{"id":"752c82eb-7efe-4837-8ea5-d43330f2bb0a","block_type":"box","text":"(k) fixed and variable rate notes and similar debt instruments rated MIG-2, VMIG-2 or Prime-2 or","page_number":124,"box":{"x":150,"y":327,"width":730,"height":12}},{"id":"97afae28-5cd6-4c30-9d14-4230912bb387","block_type":"box","text":"higher by Moody’s, SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":124,"box":{"x":184,"y":343,"width":563,"height":12}},{"id":"1c90940f-1f45-4006-a22a-a19ecfcd0d1a","block_type":"box","text":"(l) tax-exempt commercial paper and similar debt instruments rated Prime-2 or higher by","page_number":124,"box":{"x":150,"y":366,"width":675,"height":12}},{"id":"27474089-4d67-4c2b-86ad-bda8f9e87ec2","block_type":"box","text":"Moody’s, A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":124,"box":{"x":184,"y":382,"width":428,"height":12}},{"id":"96a28954-0d28-4f7a-8b6f-c6dfbfb1298b","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":124,"box":{"x":150,"y":405,"width":488,"height":12}},{"id":"87643505-9e04-47e9-95c1-d8706db28090","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments","page_number":124,"box":{"x":150,"y":428,"width":713,"height":12}},{"id":"9936608a-6c83-4b6c-89a7-504a86c04c61","block_type":"box","text":"described above, as determined by the Fund’s Manager under guidelines established by the","page_number":124,"box":{"x":184,"y":444,"width":688,"height":12}},{"id":"a7774f8c-29ca-40c4-a0a6-dc1f93f2a214","block_type":"box","text":"Board; and","page_number":124,"box":{"x":184,"y":459,"width":86,"height":11}},{"id":"e18f9fed-607e-4f3e-8c25-b70b8819d75f","block_type":"box","text":"(o) municipal bonds and notes which are guaranteed as to principal and interest by the U.S.","page_number":124,"box":{"x":150,"y":482,"width":693,"height":12}},{"id":"157f5292-9735-4144-a21d-70c144b9ad43","block_type":"box","text":"Government or an agency or instrumentality thereof or which otherwise depend directly or","page_number":124,"box":{"x":184,"y":498,"width":671,"height":12}},{"id":"37cefd10-7dcb-4974-ba25-8e85df78eb3e","block_type":"box","text":"indirectly on the credit of the United States.","page_number":124,"box":{"x":184,"y":513,"width":325,"height":12}},{"id":"09fe04ea-dc63-4847-b6f1-e7c605847007","block_type":"box","text":"Mortgage-Related Securities.","page_number":124,"box":{"x":116,"y":544,"width":236,"height":12}},{"id":"b224c0b9-8b76-40d1-b3ff-1983bc25c456","block_type":"box","text":"Mortgage-Backed Securities.","page_number":124,"box":{"x":116,"y":568,"width":214,"height":12}},{"id":"82a1c872-c0db-4f6f-a5c1-3d9cb7cd48c6","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in","page_number":124,"box":{"x":332,"y":568,"width":544,"height":12}},{"id":"dc788be0-8fb3-4137-a2ab-beb0f0bd9ce9","block_type":"box","text":"which payments of both principal and interest on the securities are generally made monthly, in effect","page_number":124,"box":{"x":116,"y":583,"width":749,"height":12}},{"id":"c8728aec-b1f5-4f1d-8fdc-56b71362fb56","block_type":"box","text":"“passing through” monthly payments made by borrowers on the residential or commercial mortgage","page_number":124,"box":{"x":116,"y":599,"width":745,"height":12}},{"id":"aabab22e-798a-4dbd-add9-c7c751b5ace7","block_type":"box","text":"loans that underlie the securities (net of any fees paid to the issuer or guarantor of the securities).","page_number":124,"box":{"x":117,"y":614,"width":728,"height":12}},{"id":"8e00d76c-7cdf-4a84-8a24-c415f70b303e","block_type":"box","text":"Mortgage-backed securities differ from other forms of debt securities, which normally provide for","page_number":124,"box":{"x":117,"y":630,"width":718,"height":12}},{"id":"c8673412-db19-4511-bb65-a6d66a60eb4b","block_type":"box","text":"periodic payment of interest in fixed amounts with principal payments at maturity or specified call","page_number":124,"box":{"x":117,"y":645,"width":721,"height":12}},{"id":"4615a16d-be00-4aeb-8c16-4a885c931fc2","block_type":"box","text":"dates.","page_number":124,"box":{"x":116,"y":661,"width":44,"height":9}},{"id":"3f503b42-cd1e-4f74-9dcc-3171d4a116ba","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate","page_number":124,"box":{"x":117,"y":692,"width":731,"height":12}},{"id":"0f6d8cf6-79fe-473c-a2da-853787520b04","block_type":"box","text":"securities; that is, they may lose value if the value of the underlying real estate to which a pool of","page_number":124,"box":{"x":116,"y":707,"width":718,"height":12}},{"id":"404a1548-72e0-46cc-b090-b246cc2a1401","block_type":"box","text":"mortgages relates declines. In addition, investments in mortgage-backed securities involve certain","page_number":124,"box":{"x":117,"y":723,"width":726,"height":12}},{"id":"3a599958-4aa7-4cc4-bcf6-a27c5701512b","block_type":"box","text":"specific risks. These risks include the failure of a party to meet its commitments under the related","page_number":124,"box":{"x":116,"y":738,"width":720,"height":12}},{"id":"d7c8dd65-5c43-4cc0-afdc-cf0c2fc691e9","block_type":"box","text":"operative documents, adverse interest rate changes and the effects of prepayments on mortgage cash","page_number":124,"box":{"x":116,"y":754,"width":762,"height":12}},{"id":"b6e89ef3-5e34-428b-8236-0022642ce2db","block_type":"box","text":"flows. Mortgage-backed securities are “pass-through” securities, meaning that principal and interest","page_number":124,"box":{"x":116,"y":769,"width":740,"height":12}},{"id":"9ee43413-c368-4770-9f83-3df7e624a470","block_type":"box","text":"payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":124,"box":{"x":117,"y":785,"width":687,"height":12}},{"id":"2415e141-0670-4f2a-8b06-ef90051db1f9","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly","page_number":124,"box":{"x":116,"y":800,"width":720,"height":12}},{"id":"eacec448-1796-439f-9e63-e67b6b4d5ebc","block_type":"box","text":"sensitive to changes in prevailing interest rates, and, like other fixed income investments, the ability of","page_number":124,"box":{"x":116,"y":816,"width":757,"height":12}},{"id":"cf51dd5a-6c35-4d0f-80c8-f3a1601bd978","block_type":"box","text":"a Fund to utilize these instruments successfully may depend in part upon the ability of the Manager to","page_number":124,"box":{"x":116,"y":831,"width":760,"height":12}},{"id":"814a15cd-a7bf-4e4b-808e-76be38014d64","block_type":"box","text":"forecast interest rates and other economic factors correctly. The value of mortgage-backed securities,","page_number":124,"box":{"x":116,"y":847,"width":761,"height":12}},{"id":"809da7eb-0cc8-4e1c-833b-e07bcb67b1b6","block_type":"box","text":"like that of traditional fixed-income securities, typically increases when interest rates fall and decreases","page_number":124,"box":{"x":117,"y":862,"width":768,"height":12}},{"id":"63b8bddb-4e98-461a-9e9b-016f521c4f6d","block_type":"box","text":"when interest rates rise. However, mortgage-backed securities differ from traditional fixed-income","page_number":124,"box":{"x":116,"y":878,"width":729,"height":12}},{"id":"a0b5794a-11cd-4fea-84ef-69de118b77fa","block_type":"box","text":"II-65","page_number":124,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"8b9d4892-aa86-4e7e-9da1-f8c6a0ee1217","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":124,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ccf39ae4-f65b-4b1c-9bad-1caf9210f139","block_type":"box","text":"securities because of their potential for prepayment without penalty. The price paid by a Fund for its","page_number":125,"box":{"x":116,"y":87,"width":745,"height":12}},{"id":"b067c949-96cf-47b4-8ebc-6778042a5a0f","block_type":"box","text":"mortgage-backed securities, the yield the Fund expects to receive from such securities and the","page_number":125,"box":{"x":117,"y":102,"width":709,"height":13}},{"id":"d5b649e7-2b67-498f-95d6-54937f81294c","block_type":"box","text":"weighted average life of the securities are based on a number of factors, including the anticipated rate","page_number":125,"box":{"x":116,"y":118,"width":762,"height":12}},{"id":"090f2a2e-e62a-4afc-951c-80537daa059d","block_type":"box","text":"of prepayment of the underlying mortgages. In a period of declining interest rates, borrowers may","page_number":125,"box":{"x":116,"y":134,"width":727,"height":12}},{"id":"38c33385-1774-4adf-acc0-7ca1d9063d15","block_type":"box","text":"prepay the underlying mortgages more quickly than anticipated, thereby reducing the yield to maturity","page_number":125,"box":{"x":117,"y":149,"width":757,"height":12}},{"id":"5e39ac8b-321e-4661-896c-66bbbf8e56b7","block_type":"box","text":"and the average life of the mortgage-backed securities. Moreover, when a Fund reinvests the proceeds","page_number":125,"box":{"x":116,"y":165,"width":772,"height":12}},{"id":"592079d6-4a51-488d-96d1-7e3353b5c9c7","block_type":"box","text":"of a prepayment in these circumstances, it will likely receive a rate of interest that is lower than the rate","page_number":125,"box":{"x":116,"y":180,"width":769,"height":12}},{"id":"2f64d123-e57a-49bf-899b-7a81618b6696","block_type":"box","text":"on the security that was prepaid.","page_number":125,"box":{"x":116,"y":196,"width":247,"height":12}},{"id":"da11aac6-8d84-42fa-84dc-c62882f97f77","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures","page_number":125,"box":{"x":116,"y":227,"width":766,"height":12}},{"id":"1f911f1f-d184-42c7-b51d-46c62b0b58d1","block_type":"box","text":"and principal prepayments may result in a loss to the extent of the premium paid. If a Fund buys such","page_number":125,"box":{"x":116,"y":242,"width":758,"height":12}},{"id":"e45c78a9-ef4a-462c-8754-57cdfc713785","block_type":"box","text":"securities at a discount, both scheduled payments of principal and unscheduled prepayments will","page_number":125,"box":{"x":116,"y":258,"width":726,"height":12}},{"id":"f9997aff-176a-47e1-a203-507d04f644a2","block_type":"box","text":"increase current and total returns and will accelerate the recognition of income, which, when distributed","page_number":125,"box":{"x":117,"y":273,"width":771,"height":12}},{"id":"fd8c74ce-70d4-499e-97c4-efa712c58891","block_type":"box","text":"to shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of","page_number":125,"box":{"x":116,"y":289,"width":762,"height":12}},{"id":"942059f7-4aaf-45b4-9efb-c073fb761b29","block_type":"box","text":"the underlying mortgages may occur at a slower than expected rate, creating maturity extension risk.","page_number":125,"box":{"x":116,"y":304,"width":753,"height":12}},{"id":"34e3dc34-ace7-4566-b4ed-8042bdf27325","block_type":"box","text":"This particular risk may effectively change a security that was considered short- or intermediate-term at","page_number":125,"box":{"x":116,"y":320,"width":771,"height":12}},{"id":"97d1a731-2ae4-4e7f-ab92-b071045f25e0","block_type":"box","text":"the time of purchase into a long-term security. Since the value of long-term securities generally","page_number":125,"box":{"x":116,"y":335,"width":709,"height":12}},{"id":"4e0e2662-c328-4a5f-af85-9ea62e62517b","block_type":"box","text":"fluctuates more widely in response to changes in interest rates than that of shorter-term securities,","page_number":125,"box":{"x":116,"y":351,"width":736,"height":12}},{"id":"f8766ee4-4706-499a-8f11-77b83701914a","block_type":"box","text":"maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":125,"box":{"x":117,"y":366,"width":769,"height":12}},{"id":"c18adaec-5817-427e-ad37-e910711a7617","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities","page_number":125,"box":{"x":117,"y":382,"width":740,"height":12}},{"id":"7e9ff82b-9411-4bc0-8ff5-0f9d4acf1b2b","block_type":"box","text":"notwithstanding any direct or indirect governmental or agency guarantee.","page_number":125,"box":{"x":117,"y":397,"width":547,"height":12}},{"id":"db4f989e-ee04-499f-ad6e-046116619080","block_type":"box","text":"There are currently three types of mortgage pass-through securities: (1) those issued by the U.S.","page_number":125,"box":{"x":116,"y":428,"width":725,"height":12}},{"id":"c2e1623a-0ce7-479e-92d6-ffa6403f7fff","block_type":"box","text":"Government or one of its agencies or instrumentalities, such as the Government National Mortgage","page_number":125,"box":{"x":117,"y":444,"width":742,"height":12}},{"id":"8945cae0-4650-40a1-bc7a-57d75861ce75","block_type":"box","text":"Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”) and the Federal","page_number":125,"box":{"x":116,"y":459,"width":770,"height":12}},{"id":"11f40d51-1a34-401c-a9d4-8dab22b12951","block_type":"box","text":"Home Loan Mortgage Corporation (“Freddie Mac”); (2) those issued by private issuers that represent","page_number":125,"box":{"x":117,"y":475,"width":753,"height":12}},{"id":"e5658c97-56ae-4e8a-8b2c-5f4973c2776c","block_type":"box","text":"an interest in or are collateralized by pass-through securities issued or guaranteed by the U.S.","page_number":125,"box":{"x":116,"y":490,"width":704,"height":12}},{"id":"efdc2ff2-ccf4-4e3b-a1e8-dadaa6feb961","block_type":"box","text":"Government or one of its agencies or instrumentalities; and (3) those issued by private issuers that","page_number":125,"box":{"x":117,"y":506,"width":737,"height":12}},{"id":"31922710-522d-4e71-9ca5-49af949ac58e","block_type":"box","text":"represent an interest in or are collateralized by whole mortgage loans or pass-through securities","page_number":125,"box":{"x":117,"y":521,"width":717,"height":12}},{"id":"e92df73e-9386-4d85-8e2f-f4ded0894ed8","block_type":"box","text":"without a government guarantee but that usually have some form of private credit enhancement.","page_number":125,"box":{"x":116,"y":537,"width":720,"height":12}},{"id":"14f7add4-8e00-422f-a45b-a1c8eec3fba1","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and","page_number":125,"box":{"x":117,"y":568,"width":736,"height":12}},{"id":"23ec45af-1b40-4518-8fdf-399e3b2fdfde","block_type":"box","text":"Urban Development. Ginnie Mae is authorized to guarantee, with the full faith and credit of the U.S.","page_number":125,"box":{"x":117,"y":583,"width":741,"height":12}},{"id":"be874e26-49b7-4c38-b00b-9ab22f883e29","block_type":"box","text":"Government, the timely payment of principal and interest on securities issued by the institutions","page_number":125,"box":{"x":117,"y":599,"width":713,"height":12}},{"id":"c3c4416e-5e74-40c0-88f0-38baa1cd0d35","block_type":"box","text":"approved by Ginnie Mae (such as savings and loan institutions, commercial banks and mortgage","page_number":125,"box":{"x":116,"y":614,"width":725,"height":12}},{"id":"6608c4a6-ffcc-4ef3-ad70-51e4f48d51b2","block_type":"box","text":"banks), and backed by pools of Federal Housing Administration (“FHA”)-insured or Veterans’","page_number":125,"box":{"x":117,"y":630,"width":693,"height":12}},{"id":"80c0754b-b1dc-4a99-a2f8-cb9a1cf900c1","block_type":"box","text":"Administration (“VA”)-guaranteed mortgages. Pass-through certificates guaranteed by Ginnie Mae","page_number":125,"box":{"x":116,"y":645,"width":733,"height":12}},{"id":"a6c2d54e-61a8-4383-889e-d9de5e6032cc","block_type":"box","text":"(such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely payment of","page_number":125,"box":{"x":117,"y":661,"width":707,"height":12}},{"id":"b48cb609-9caa-4211-8d12-5122dacf6b27","block_type":"box","text":"principal and interest by Ginnie Mae, whose guarantee is backed by the full faith and credit of the","page_number":125,"box":{"x":117,"y":676,"width":720,"height":12}},{"id":"028800bc-c80f-4b8e-8275-73b8b7993b12","block_type":"box","text":"United States. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow","page_number":125,"box":{"x":117,"y":692,"width":729,"height":12}},{"id":"fcf36445-e3ba-4525-bb0c-42892c0f6582","block_type":"box","text":"funds from the U.S. Treasury Department to make payments under its guarantee. Mortgage-related","page_number":125,"box":{"x":116,"y":707,"width":737,"height":12}},{"id":"ee5d01c9-871b-4328-beae-7e90dd03cb65","block_type":"box","text":"securities issued by Fannie Mae include Fannie Mae guaranteed Mortgage Pass-Through Certificates","page_number":125,"box":{"x":116,"y":723,"width":756,"height":12}},{"id":"245b6649-2f0b-48f4-ab0a-04c858e8ea4c","block_type":"box","text":"(also known as “Fannie Maes”), which are guaranteed as to timely payment of principal and interest by","page_number":125,"box":{"x":117,"y":738,"width":761,"height":12}},{"id":"782482d6-c29d-48e8-8684-c08bec18befa","block_type":"box","text":"Fannie Mae. They are not backed by or entitled to the full faith and credit of the United States, but are","page_number":125,"box":{"x":117,"y":754,"width":754,"height":12}},{"id":"67777be0-0d04-410b-aa9c-3ec4acccb188","block_type":"box","text":"supported by the right of Fannie Mae to borrow from the U.S. Treasury Department. Fannie Mae was","page_number":125,"box":{"x":116,"y":769,"width":750,"height":12}},{"id":"3f069c49-f681-426b-b1a5-a22a86a3c5f1","block_type":"box","text":"established as a federal agency in 1938 and in 1968 was chartered by Congress as a private","page_number":125,"box":{"x":116,"y":785,"width":690,"height":12}},{"id":"8c99c107-51a9-42e6-8962-becd91d6fb6c","block_type":"box","text":"shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":125,"box":{"x":116,"y":800,"width":760,"height":12}},{"id":"8709c920-c5c2-4eca-bbb5-a71f69b4cd82","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a","page_number":125,"box":{"x":117,"y":816,"width":697,"height":12}},{"id":"5147e3b6-eeef-4807-897b-9526ad2fb47e","block_type":"box","text":"stockholder-owned corporation chartered by Congress in 1970. Freddie Macs are not guaranteed by","page_number":125,"box":{"x":116,"y":831,"width":750,"height":12}},{"id":"0991ba44-30c6-4d48-ab0d-684f53553021","block_type":"box","text":"the United States or by any Federal Home Loan Banks and do not constitute a debt or obligation of the","page_number":125,"box":{"x":116,"y":847,"width":768,"height":12}},{"id":"83254fa5-eb44-47b9-8148-d34705804892","block_type":"box","text":"United States or of any Federal Home Loan Bank. Freddie Macs entitle the holder to timely payment of","page_number":125,"box":{"x":117,"y":862,"width":767,"height":12}},{"id":"7ca384e4-5baf-4493-a590-e722283f3c0c","block_type":"box","text":"interest, which is guaranteed by Freddie Mac. Freddie Mac guarantees either ultimate collection or","page_number":125,"box":{"x":117,"y":878,"width":735,"height":12}},{"id":"2b52502b-e73a-4e22-8147-cab922c61d35","block_type":"box","text":"II-66","page_number":125,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"0d5fc779-fe22-40b3-92d3-5dd86a08e56e","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":125,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a709e035-723d-4e39-b448-1903326bc5b8","block_type":"box","text":"timely payment of all principal payments on the underlying mortgage loans. While Freddie Mac","page_number":126,"box":{"x":116,"y":87,"width":707,"height":12}},{"id":"d8c1afd2-7708-4be4-b68b-bb290bacc4e9","block_type":"box","text":"generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due on","page_number":126,"box":{"x":116,"y":102,"width":753,"height":13}},{"id":"38775a7c-913d-4f26-8731-5052b96a2bad","block_type":"box","text":"account of its guarantee of ultimate payment of principal at any time after default on an underlying","page_number":126,"box":{"x":116,"y":118,"width":732,"height":12}},{"id":"1215ce83-bea3-4165-8cfe-11af7903094a","block_type":"box","text":"mortgage, but in no event later than one year after it becomes payable.","page_number":126,"box":{"x":117,"y":134,"width":532,"height":12}},{"id":"d0d0d400-f34f-482e-b726-f67a7d4d0d2d","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and","page_number":126,"box":{"x":117,"y":168,"width":730,"height":12}},{"id":"e4b6a8d6-b54f-4a0b-8300-f9ae34f53f64","block_type":"box","text":"Freddie Mac mortgage pass-through securities and are issued by originators of and investors in","page_number":126,"box":{"x":117,"y":183,"width":714,"height":12}},{"id":"015d2afc-abb9-465b-b481-0339076f33ed","block_type":"box","text":"mortgage loans, including depository institutions, mortgage banks, investment banks and special","page_number":126,"box":{"x":117,"y":199,"width":722,"height":12}},{"id":"49e50d6a-4592-418c-944e-5c88ef0db8f8","block_type":"box","text":"purpose subsidiaries of the foregoing.","page_number":126,"box":{"x":117,"y":214,"width":284,"height":12}},{"id":"69bf298e-279d-4b34-beac-74fae601476f","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than","page_number":126,"box":{"x":117,"y":248,"width":747,"height":12}},{"id":"2a17ac5d-0a3b-4473-ba56-144fff2ead98","block_type":"box","text":"government and government-related pools because there are no direct or indirect government or","page_number":126,"box":{"x":116,"y":264,"width":723,"height":12}},{"id":"531a0734-3dc0-4031-8c92-59ea88846fd7","block_type":"box","text":"agency guarantees of payments in the private pools. However, timely payment of interest and principal","page_number":126,"box":{"x":116,"y":279,"width":767,"height":12}},{"id":"3d7f2a09-db86-49e2-8af5-85dde51ff0ff","block_type":"box","text":"of these pools may be supported by various forms of insurance or guarantees, including individual","page_number":126,"box":{"x":116,"y":295,"width":732,"height":12}},{"id":"832704b5-219e-47fd-9b61-66303d2b820c","block_type":"box","text":"loan, title, pool and hazard insurance and letters of credit. The insurance and guarantees are issued by","page_number":126,"box":{"x":117,"y":310,"width":769,"height":12}},{"id":"90c2e5ee-448f-496c-8121-90368ac77b6a","block_type":"box","text":"governmental entities, private insurers and the mortgage poolers. The insurance and guarantees and","page_number":126,"box":{"x":116,"y":326,"width":756,"height":12}},{"id":"c8252189-5794-4664-b8da-d352b5da57ae","block_type":"box","text":"the creditworthiness of the issuers thereof will be considered in determining whether a mortgage","page_number":126,"box":{"x":116,"y":341,"width":720,"height":12}},{"id":"814ae342-8ec8-43db-8d7f-7e29bdead877","block_type":"box","text":"related security meets a Fund’s investment quality standards. There can be no assurance that the","page_number":126,"box":{"x":117,"y":357,"width":731,"height":12}},{"id":"3d165ba2-fe9b-4a90-b933-fed561f54aea","block_type":"box","text":"private insurers or guarantors can meet their obligations under the insurance policies or guarantee","page_number":126,"box":{"x":117,"y":372,"width":734,"height":12}},{"id":"0f6dbb15-b691-4ec9-8684-011d3bd41afe","block_type":"box","text":"arrangements. Private mortgage pass-through securities may be bought without insurance or","page_number":126,"box":{"x":116,"y":388,"width":696,"height":12}},{"id":"2cc8e70f-88a6-4e75-8594-77dd5379d5b6","block_type":"box","text":"guarantees if, through an examination of the loan experience and practices of the originator/servicers","page_number":126,"box":{"x":116,"y":403,"width":756,"height":12}},{"id":"74c172c2-d4dd-4bf2-9ce1-b21f4f0ac7b7","block_type":"box","text":"and poolers, the Manager determines that the securities meet a Fund’s quality standards. Any","page_number":126,"box":{"x":116,"y":419,"width":703,"height":12}},{"id":"747bdcc0-d2f8-44bb-8289-2a7e43999a1e","block_type":"box","text":"mortgage-related securities that are issued by private issuers have some exposure to subprime loans","page_number":126,"box":{"x":117,"y":434,"width":757,"height":12}},{"id":"f19da829-720e-409c-9e37-9dd983abc67d","block_type":"box","text":"as well as to the mortgage and credit markets generally.","page_number":126,"box":{"x":116,"y":450,"width":422,"height":12}},{"id":"40efa5c7-df78-4b80-a8fb-94dfc830cfcc","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the","page_number":126,"box":{"x":117,"y":484,"width":707,"height":12}},{"id":"2cec9bce-9d00-41c2-ad61-8cb86c39ea99","block_type":"box","text":"underwriting requirements for the underlying mortgages that are applicable to those mortgage-related","page_number":126,"box":{"x":117,"y":499,"width":757,"height":13}},{"id":"610447ba-874a-497f-92f9-060205800dd7","block_type":"box","text":"securities that have a government or government-sponsored entity guarantee. As a result, the","page_number":126,"box":{"x":116,"y":515,"width":702,"height":12}},{"id":"7e6eabbb-2bcb-4442-a729-5d2df5dd4eae","block_type":"box","text":"mortgage loans underlying private mortgage-related securities may, and frequently do, have less","page_number":126,"box":{"x":117,"y":530,"width":722,"height":13}},{"id":"fa6b8d4e-1297-48a9-b0de-08458fcfe657","block_type":"box","text":"favorable collateral, credit risk or other underwriting characteristics than government or government","page_number":126,"box":{"x":116,"y":546,"width":743,"height":12}},{"id":"76113422-2ba7-4670-ac80-a98bf3f9c255","block_type":"box","text":"sponsored mortgage-related securities and have wider variances in a number of terms including","page_number":126,"box":{"x":116,"y":561,"width":717,"height":13}},{"id":"bc7b8706-777c-44fe-9271-2c9e33a48a25","block_type":"box","text":"interest rate, term, size, purpose and borrower characteristics. Privately issued pools more frequently","page_number":126,"box":{"x":117,"y":577,"width":755,"height":12}},{"id":"09748d1d-df9d-4407-8b05-ede08fe55e5e","block_type":"box","text":"include second mortgages, high loan-to-value mortgages and manufactured housing loans. The","page_number":126,"box":{"x":117,"y":592,"width":714,"height":13}},{"id":"95cc1970-029a-405b-b325-bf9270d42c7c","block_type":"box","text":"coupon rates and maturities of the underlying mortgage loans in a private-label mortgage-related","page_number":126,"box":{"x":116,"y":608,"width":723,"height":12}},{"id":"07ff6fff-0152-49ee-aa32-183dc87ca7d2","block_type":"box","text":"securities pool may vary to a greater extent than those included in a government guaranteed pool, and","page_number":126,"box":{"x":116,"y":624,"width":766,"height":12}},{"id":"0fd0640b-d366-4827-a5d9-e6087ac92738","block_type":"box","text":"the pool may include subprime mortgage loans. Subprime loans refer to loans made to borrowers with","page_number":126,"box":{"x":116,"y":639,"width":762,"height":12}},{"id":"b582b310-1b01-4efc-8905-d250b707aa6d","block_type":"box","text":"weakened credit histories or with a lower capacity to make timely payments on their loans. For these","page_number":126,"box":{"x":116,"y":655,"width":751,"height":12}},{"id":"bd8c07d8-7e92-4225-9c69-d1061512b97f","block_type":"box","text":"reasons, the loans underlying these securities have had in many cases higher default rates than those","page_number":126,"box":{"x":117,"y":670,"width":758,"height":12}},{"id":"4035ab1a-054c-4738-b8f1-53515a6e28d7","block_type":"box","text":"loans that meet government underwriting requirements.","page_number":126,"box":{"x":117,"y":686,"width":410,"height":12}},{"id":"27582ac1-fb0b-4a5d-81fe-b7f818cf8a63","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools","page_number":126,"box":{"x":116,"y":720,"width":753,"height":12}},{"id":"8be8eb3a-39e9-4ee2-a758-6890afbae938","block_type":"box","text":"that contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting","page_number":126,"box":{"x":116,"y":735,"width":740,"height":12}},{"id":"1dc61879-7058-4f97-bb30-3761526f1ba0","block_type":"box","text":"mortgage loan repayments may include a general economic turndown, high unemployment, a general","page_number":126,"box":{"x":117,"y":751,"width":754,"height":12}},{"id":"4fbc1ccb-e250-408c-93d4-b4b42fbfbd7c","block_type":"box","text":"slowdown in the real estate market, a drop in the market prices of real estate, or an increase in interest","page_number":126,"box":{"x":116,"y":766,"width":763,"height":12}},{"id":"e7b8de27-22ae-4ea4-916d-88ce1bfe574b","block_type":"box","text":"rates resulting in higher mortgage payments by holders of adjustable rate mortgages.","page_number":126,"box":{"x":117,"y":782,"width":631,"height":12}},{"id":"8319511b-8964-4bc5-8334-425e926cd5c8","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited","page_number":126,"box":{"x":117,"y":816,"width":761,"height":12}},{"id":"1a55b672-a729-47d8-b23b-6cd2a952eafe","block_type":"box","text":"market for the securities, especially when there is a perceived weakness in the mortgage and real","page_number":126,"box":{"x":117,"y":831,"width":729,"height":12}},{"id":"4b00cd37-79c5-4ac0-809e-c99a46aa4320","block_type":"box","text":"estate market sectors. Without an active trading market, mortgage-related securities held in a Fund’s","page_number":126,"box":{"x":116,"y":847,"width":753,"height":12}},{"id":"5669f975-a39d-4759-a283-e907cc0afe34","block_type":"box","text":"portfolio may be particularly difficult to value because of the complexities involved in assessing the","page_number":126,"box":{"x":117,"y":862,"width":734,"height":12}},{"id":"5dee1d7b-c9f6-4df2-b1de-b259917781c7","block_type":"box","text":"value of the underlying mortgage loans.","page_number":126,"box":{"x":116,"y":878,"width":299,"height":12}},{"id":"ef90e7cd-cfcc-4f24-8f77-3c3e41aef2be","block_type":"box","text":"II-67","page_number":126,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"cc4fe1cc-8d7e-401e-adb8-0ef85674f963","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":126,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"87c15785-9b8e-485f-80fd-ec7a5596f057","block_type":"box","text":"Collateralized Mortgage Obligations (“CMOs”).","page_number":127,"box":{"x":117,"y":87,"width":343,"height":12}},{"id":"4d9f1be9-747a-4b19-bc08-6de92dc145cf","block_type":"box","text":"CMOs are debt obligations collateralized by residential","page_number":127,"box":{"x":462,"y":87,"width":415,"height":12}},{"id":"e49cd986-59f5-4f59-b861-a6b43a1a3a65","block_type":"box","text":"or commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest","page_number":127,"box":{"x":116,"y":103,"width":762,"height":12}},{"id":"7b47cb5c-c8f0-4ba0-94e9-6a7ed889806e","block_type":"box","text":"and prepaid principal are generally paid monthly. CMOs may be collateralized by whole mortgage","page_number":127,"box":{"x":116,"y":118,"width":729,"height":12}},{"id":"af6aca86-bbf7-4f43-bd66-57a0ad1b45fa","block_type":"box","text":"loans or private mortgage pass-through securities but are more typically collateralized by portfolios of","page_number":127,"box":{"x":117,"y":134,"width":755,"height":12}},{"id":"e2f783e4-e82d-4fb3-9c5b-3df0a134cf6b","block_type":"box","text":"mortgage pass-through securities guaranteed by Ginnie Mae, Freddie Mac, or Fannie Mae. The issuer","page_number":127,"box":{"x":117,"y":149,"width":765,"height":12}},{"id":"f48c87b9-d639-47ba-bd9e-95e2437ad41d","block_type":"box","text":"of a series of CMOs may elect to be treated as a Real Estate Mortgage Investment Conduit (“REMIC”).","page_number":127,"box":{"x":116,"y":165,"width":769,"height":12}},{"id":"fb59e35e-1ba6-4c53-9b1b-e7c42002a62a","block_type":"box","text":"All future references to CMOs also include REMICs.","page_number":127,"box":{"x":116,"y":180,"width":392,"height":10}},{"id":"a88e4ae0-71c0-4f19-ac9c-65baeff1b161","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific","page_number":127,"box":{"x":117,"y":211,"width":746,"height":12}},{"id":"759ad4a6-997e-4e64-ac27-12125892d556","block_type":"box","text":"adjustable or fixed interest rate, and bearing a different stated maturity date and each must be fully","page_number":127,"box":{"x":116,"y":227,"width":738,"height":12}},{"id":"355fbc51-a7c7-4af8-8cc0-0d9953f82443","block_type":"box","text":"retired no later than its final distribution date. Actual maturity and average life will depend upon the","page_number":127,"box":{"x":117,"y":242,"width":734,"height":12}},{"id":"9402073b-b673-4541-b270-70b52555de4c","block_type":"box","text":"prepayment experience of the collateral, which is ordinarily unrelated to the stated maturity date.","page_number":127,"box":{"x":117,"y":258,"width":719,"height":12}},{"id":"cddbd169-8c0e-43e8-9147-937bb6e41305","block_type":"box","text":"CMOs often provide for a modified form of call protection through a de facto breakdown of the","page_number":127,"box":{"x":117,"y":273,"width":700,"height":12}},{"id":"d329afab-b1bc-4614-9109-1d0c9b086500","block_type":"box","text":"underlying pool of mortgages according to how quickly the loans are repaid. Monthly payment of","page_number":127,"box":{"x":117,"y":289,"width":718,"height":12}},{"id":"ce6a710e-a3fc-417f-8556-3f4e8f4be179","block_type":"box","text":"principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":127,"box":{"x":117,"y":304,"width":740,"height":12}},{"id":"2bbf4c25-2074-40a2-923a-cdb11f9b2726","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually","page_number":127,"box":{"x":117,"y":320,"width":729,"height":12}},{"id":"1d375d46-c5a4-4f77-8c4b-ea79916d7367","block_type":"box","text":"receive principal only after the first class has been retired. An investor may be partially protected","page_number":127,"box":{"x":117,"y":335,"width":719,"height":12}},{"id":"78485641-b34f-4549-bafc-3b7d07519d3f","block_type":"box","text":"against a sooner than desired return of principal because of the sequential payments.","page_number":127,"box":{"x":116,"y":351,"width":640,"height":12}},{"id":"e9672dac-5a59-4911-9d2f-f0e62321caf6","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":127,"box":{"x":117,"y":382,"width":755,"height":12}},{"id":"6ca142eb-d192-4b76-8c68-631b5fe23461","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by","page_number":127,"box":{"x":117,"y":397,"width":771,"height":12}},{"id":"5a797162-af7a-47e6-befb-4c8b08e6cc1e","block_type":"box","text":"the Investment Company Act on investments by a Fund in other investment companies. In addition, in","page_number":127,"box":{"x":116,"y":413,"width":761,"height":12}},{"id":"32fecb18-2525-480f-9d49-00833806204c","block_type":"box","text":"reliance on an earlier Commission interpretation, a Fund’s investments in certain other qualifying","page_number":127,"box":{"x":117,"y":428,"width":721,"height":12}},{"id":"e572385d-a2a9-4b72-a90d-b3fd887679d8","block_type":"box","text":"CMOs, which cannot or do not rely on the rule, are also not subject to the limitation of the Investment","page_number":127,"box":{"x":117,"y":444,"width":753,"height":12}},{"id":"13bd4577-94e1-4aed-8932-91f885c1972f","block_type":"box","text":"Company Act on acquiring interests in other investment companies. In order to be able to rely on the","page_number":127,"box":{"x":117,"y":459,"width":750,"height":12}},{"id":"9b761017-4413-4dc1-a439-47945ca6938b","block_type":"box","text":"Commission’s interpretation, these CMOs must be unmanaged, fixed asset issuers, that: (1) invest","page_number":127,"box":{"x":117,"y":475,"width":736,"height":12}},{"id":"bd917ef1-0242-4573-a35d-d42ae4d11d31","block_type":"box","text":"primarily in mortgage-backed securities; (2) do not issue redeemable securities; (3) operate under","page_number":127,"box":{"x":117,"y":490,"width":730,"height":12}},{"id":"6b3e16c7-290c-4638-b3bf-da6e0007fb46","block_type":"box","text":"general exemptive orders exempting them from all provisions of the Investment Company Act; and","page_number":127,"box":{"x":116,"y":506,"width":736,"height":12}},{"id":"54b641a0-8116-4a69-ac1e-7dc4acc18c76","block_type":"box","text":"(4) are not registered or regulated under the Investment Company Act as investment companies. To","page_number":127,"box":{"x":117,"y":521,"width":748,"height":12}},{"id":"0cdd360e-c722-4d21-8c97-1abaca5aa678","block_type":"box","text":"the extent that a Fund selects CMOs that cannot rely on the rule or do not meet the above","page_number":127,"box":{"x":116,"y":537,"width":674,"height":12}},{"id":"a7f8bda6-f54c-4c76-97fa-3c5985665f27","block_type":"box","text":"requirements, the Fund may not invest more than 10% of its assets in all such entities and may not","page_number":127,"box":{"x":117,"y":552,"width":738,"height":12}},{"id":"28b295a0-4f5e-48cb-8e81-b66c1382ab4f","block_type":"box","text":"acquire more than 3% of the voting securities of any single such entity.","page_number":127,"box":{"x":116,"y":568,"width":530,"height":12}},{"id":"38f05a8b-0bc2-4abd-8c1a-2340d2cb2877","block_type":"box","text":"A Fund may also invest in, among other things, parallel pay CMOs, sequential pay CMOs, and floating","page_number":127,"box":{"x":116,"y":599,"width":765,"height":12}},{"id":"3155a993-4267-42fc-8c47-70bd0cbf0be9","block_type":"box","text":"rate CMOs. Parallel pay CMOs are structured to provide payments of principal on each payment date","page_number":127,"box":{"x":117,"y":614,"width":757,"height":12}},{"id":"c644bb80-a20c-44a0-b980-4cd86cbdaa56","block_type":"box","text":"to more than one class, concurrently on a proportionate or disproportionate basis. These simultaneous","page_number":127,"box":{"x":116,"y":630,"width":766,"height":12}},{"id":"1c60df74-337b-4a10-af79-dce09318322c","block_type":"box","text":"payments are taken into account in calculating the final distribution date of each class. Sequential pay","page_number":127,"box":{"x":117,"y":645,"width":759,"height":12}},{"id":"2f8969a8-3d1e-468a-ab58-f08ddbbc1220","block_type":"box","text":"CMOs generally pay principal to only one class at a time while paying interest to several classes. A","page_number":127,"box":{"x":117,"y":661,"width":734,"height":12}},{"id":"810fbbae-5765-41c2-ac9b-9334a5505dec","block_type":"box","text":"wide variety of REMIC Certificates may be issued in the parallel pay or sequential pay structures.","page_number":127,"box":{"x":116,"y":676,"width":719,"height":12}},{"id":"7891c486-4cab-4dac-b006-8e4e306c861b","block_type":"box","text":"These securities include accrual certificates (also known as “Z-Bonds”), which only accrue interest at a","page_number":127,"box":{"x":116,"y":692,"width":761,"height":12}},{"id":"c1dd093e-e300-4630-8f3a-112cb7afda22","block_type":"box","text":"specified rate until all other certificates having an earlier final distribution date have been retired and","page_number":127,"box":{"x":116,"y":707,"width":740,"height":12}},{"id":"377374af-e300-4d2f-aee2-82890061c055","block_type":"box","text":"are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose","page_number":127,"box":{"x":116,"y":723,"width":712,"height":12}},{"id":"d3c0ab48-179f-4716-9ef2-16e76f83a937","block_type":"box","text":"coupon rate fluctuates according to some formula related to an existing market index or rate. Typical","page_number":127,"box":{"x":116,"y":738,"width":745,"height":12}},{"id":"749a6096-5c8b-4ed8-8ce2-d044b02c453a","block_type":"box","text":"indices would include the eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and","page_number":127,"box":{"x":117,"y":754,"width":753,"height":12}},{"id":"00def9a9-8c96-4a71-bb7e-2389fab362fd","block_type":"box","text":"ten-year Treasury yields.","page_number":127,"box":{"x":116,"y":769,"width":184,"height":12}},{"id":"81ec9904-3821-4bde-bbde-c4b62732d110","block_type":"box","text":"Classes of CMOs also include planned amortization","page_number":127,"box":{"x":117,"y":800,"width":375,"height":12}},{"id":"ec5f448a-3726-4d13-9f2a-c7d208f9fc91","block_type":"box","text":"classes (“PACs”) and targeted amortization classes","page_number":127,"box":{"x":498,"y":800,"width":373,"height":12}},{"id":"a7ef8f3e-95c7-4ce9-98d3-caa788c0de5c","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a s","page_number":127,"box":{"x":117,"y":816,"width":402,"height":12}},{"id":"dae2f35c-47bd-4183-801f-7a5a12dcbe6c","block_type":"box","text":"pecified amount of principal on each payment","page_number":127,"box":{"x":521,"y":816,"width":330,"height":12}},{"id":"db258727-a531-4026-be76-b0711048bcab","block_type":"box","text":"date. The scheduled principal payments for PAC Certifi","page_number":127,"box":{"x":116,"y":831,"width":399,"height":12}},{"id":"32452f8d-a90f-4412-be8e-c4b93af4d9af","block_type":"box","text":"cates generally have the highest priority on each","page_number":127,"box":{"x":517,"y":831,"width":357,"height":12}},{"id":"61e090b3-71a2-44a1-8780-816ee9df1dd8","block_type":"box","text":"payment date after interest due has been paid to all","page_number":127,"box":{"x":117,"y":847,"width":378,"height":12}},{"id":"f90c197a-1679-4ef4-adef-298b2a0a9113","block_type":"box","text":"classes entitled to receive interest currently.","page_number":127,"box":{"x":496,"y":847,"width":323,"height":12}},{"id":"a1520993-bb1a-466d-9eeb-610560630b7b","block_type":"box","text":"Shortfalls, if any, are added to the amount payabl","page_number":127,"box":{"x":116,"y":862,"width":357,"height":12}},{"id":"8d02491e-abdb-46f7-a58a-c7adef9d098b","block_type":"box","text":"e on the next payment date. The PAC Certificate","page_number":127,"box":{"x":475,"y":862,"width":358,"height":12}},{"id":"093f921a-6e50-4f5b-8803-10aeaf13002a","block_type":"box","text":"payment schedule is taken into account in calculating t","page_number":127,"box":{"x":117,"y":878,"width":391,"height":12}},{"id":"b47926bb-cf1c-4836-aa1a-b2796f7f7526","block_type":"box","text":"the final distribution date of each class of PAC. In","page_number":127,"box":{"x":508,"y":878,"width":363,"height":9}},{"id":"9429a948-5c74-4c16-9c1d-1fd89d72251b","block_type":"box","text":"II-68","page_number":127,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"76f4c036-1d65-4d0f-a5e3-015939f0d04d","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":127,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"55ed3a2d-ec98-4cb0-86a4-cfb2a3dfeb79","block_type":"box","text":"order to create PAC tranches, one or more tranches gener","page_number":128,"box":{"x":116,"y":87,"width":426,"height":12}},{"id":"ef4626e6-0a37-4cc8-9855-9977d827edbf","block_type":"box","text":"ally must be created that absorb most of the","page_number":128,"box":{"x":542,"y":87,"width":325,"height":12}},{"id":"cf82f106-9716-4c7d-8f25-e780c6a30e89","block_type":"box","text":"volatility in the underlying mortgage assets. These","page_number":128,"box":{"x":116,"y":103,"width":369,"height":12}},{"id":"509523a1-e95f-4a1e-bbea-8e358e1b4156","block_type":"box","text":"tranches (often called “supports” or “companion”","page_number":128,"box":{"x":485,"y":102,"width":356,"height":13}},{"id":"702e4af2-3737-4a96-a46d-2fa0929da679","block_type":"box","text":"tranches) tend to have market prices and yields t","page_number":128,"box":{"x":116,"y":118,"width":350,"height":12}},{"id":"cf19defb-e210-4e0f-8d6f-2e083ad0cf0a","block_type":"box","text":"that are more volatile than the PAC classes.","page_number":128,"box":{"x":466,"y":118,"width":325,"height":10}},{"id":"be64b994-d3a4-49c5-a6d1-f6a9455efe51","block_type":"box","text":"TACs are similar to PACs in that they require that specified amounts of principal be applied on each","page_number":128,"box":{"x":116,"y":149,"width":745,"height":12}},{"id":"5743fbd5-04dd-47b1-9ae5-3273e2fe4ff8","block_type":"box","text":"payment date to one or more classes of REMIC Certificates. A PAC’s payment schedule, however,","page_number":128,"box":{"x":117,"y":165,"width":738,"height":12}},{"id":"43e7a648-742f-434c-8bd9-4f02834999f4","block_type":"box","text":"remains in effect as long as prepayment rates on the underlying mortgages do not exceed certain","page_number":128,"box":{"x":117,"y":180,"width":728,"height":12}},{"id":"cafb602e-7064-44dd-8f9c-08a75951eef8","block_type":"box","text":"ranges. In contrast, a TAC provides investors with protection, to a certain level, against either faster","page_number":128,"box":{"x":117,"y":196,"width":743,"height":12}},{"id":"3ef8346f-1311-4796-ab29-5ae40940c057","block_type":"box","text":"than expected or slower than expected prepayment rates, but not both. TACs thus provide more cash","page_number":128,"box":{"x":116,"y":211,"width":759,"height":12}},{"id":"8fd535df-8a4f-4337-a98e-2b5112b04c23","block_type":"box","text":"flow stability than a regular sequential paying class, but less than a PAC. TACs also tend to have","page_number":128,"box":{"x":116,"y":227,"width":725,"height":12}},{"id":"642b614c-c003-43f7-b4d7-b3021a55f821","block_type":"box","text":"market prices and yields that are more volatile than PACs.","page_number":128,"box":{"x":117,"y":242,"width":437,"height":12}},{"id":"68d98194-8559-4bc3-890d-f061a0181ea8","block_type":"box","text":"Adjustable Rate Mortgage Securities.","page_number":128,"box":{"x":115,"y":273,"width":277,"height":12}},{"id":"fa9f93d6-0e1a-4edf-847b-01c84bde0c80","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through","page_number":128,"box":{"x":393,"y":273,"width":479,"height":12}},{"id":"0473ac1f-c6ba-47ca-942b-9fad326e4bea","block_type":"box","text":"securities collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for","page_number":128,"box":{"x":116,"y":289,"width":706,"height":12}},{"id":"57f04365-29fd-459d-ac5c-9aa40936eba8","block_type":"box","text":"inclusion in a mortgage pool generally provide for a fixed initial mortgage interest rate for a set number","page_number":128,"box":{"x":117,"y":304,"width":764,"height":12}},{"id":"2d5ce3c5-93ac-4917-a592-4ae48c176e8b","block_type":"box","text":"of scheduled monthly payments. After that schedule of payments has been completed, the interest","page_number":128,"box":{"x":116,"y":320,"width":736,"height":12}},{"id":"051e7c99-1455-4ed7-8180-bd3b1ed80cd9","block_type":"box","text":"rates are subject to periodic adjustment based on changes to a designated benchmark index.","page_number":128,"box":{"x":117,"y":335,"width":697,"height":12}},{"id":"e0479100-993e-468c-a4dc-7e524a9c4de9","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary","page_number":128,"box":{"x":116,"y":366,"width":741,"height":12}},{"id":"fa7bc7c7-9864-4f12-9bba-bcdaa47f716a","block_type":"box","text":"over the lifetime of the security. In addition, certain ARMs provide for additional limitations on the","page_number":128,"box":{"x":116,"y":382,"width":722,"height":12}},{"id":"20d7c852-2ff1-4835-874f-610e76885f67","block_type":"box","text":"maximum amount by which the mortgage interest rate may adjust for any single adjustment period. In","page_number":128,"box":{"x":117,"y":397,"width":758,"height":12}},{"id":"1b0d2613-d693-4e9c-9bda-56cc835a4c5d","block_type":"box","text":"the event that market rates of interest rise more rapidly to levels above that of the ARM’s maximum","page_number":128,"box":{"x":116,"y":413,"width":741,"height":12}},{"id":"1cb660d0-b21b-4bbe-8b27-28dde7a5ca2b","block_type":"box","text":"rate, the ARM’s coupon may represent a below market rate of interest. In these circumstances, the","page_number":128,"box":{"x":117,"y":428,"width":737,"height":12}},{"id":"a570e527-47e1-46a2-8058-8a470a897ba0","block_type":"box","text":"market value of the ARM security will likely have fallen.","page_number":128,"box":{"x":117,"y":444,"width":412,"height":12}},{"id":"cd6df4d9-0ccf-4f2a-a44c-f62744332d8e","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a","page_number":128,"box":{"x":117,"y":475,"width":728,"height":12}},{"id":"2f866ad3-5e97-4f06-a0d5-170313d650c3","block_type":"box","text":"monthly payment is not sufficient to pay the interest accruing on an ARM, any such excess interest is","page_number":128,"box":{"x":117,"y":490,"width":754,"height":12}},{"id":"419ee660-5713-40cf-a0bb-379bf18a3212","block_type":"box","text":"added to the principal balance of the mortgage loan, which is repaid through future monthly payments.","page_number":128,"box":{"x":116,"y":506,"width":764,"height":12}},{"id":"177b76d8-8bc0-4837-951f-bc05dfbbf749","block_type":"box","text":"If the monthly payment for such an instrument exceeds the sum of the interest accrued at the","page_number":128,"box":{"x":117,"y":521,"width":695,"height":12}},{"id":"8c08ec08-2585-44a0-bce0-9d468258779f","block_type":"box","text":"applicable mortgage interest rate and the principal payment required at such point to amortize the","page_number":128,"box":{"x":116,"y":537,"width":730,"height":12}},{"id":"5ffc2e7a-c830-4f6b-ad72-be2f20a5ec60","block_type":"box","text":"outstanding principal balance over the remaining term of the loan, the excess is then used to reduce","page_number":128,"box":{"x":116,"y":552,"width":748,"height":12}},{"id":"e13eb802-7efc-4970-932a-5b397a56f535","block_type":"box","text":"the outstanding principal balance of the ARM.","page_number":128,"box":{"x":116,"y":568,"width":344,"height":12}},{"id":"06ca3247-8ffe-44e6-b24a-6c5e22011387","block_type":"box","text":"CMO Residuals.","page_number":128,"box":{"x":117,"y":599,"width":120,"height":9}},{"id":"486a8771-6610-4fe8-ad69-75b38b7a3420","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or","page_number":128,"box":{"x":238,"y":599,"width":546,"height":12}},{"id":"029775cf-227a-4e0d-a992-3bce419a593f","block_type":"box","text":"instrumentalities of the U.S. Government or by private originators of, or investors in, mortgage loans,","page_number":128,"box":{"x":117,"y":614,"width":750,"height":12}},{"id":"db79b75f-679b-4456-9e3e-b3eb77bfc6e4","block_type":"box","text":"including savings and loan associations, homebuilders, mortgage banks, commercial banks,","page_number":128,"box":{"x":117,"y":630,"width":688,"height":12}},{"id":"471ece3d-5915-4d45-9b16-1622daaaa9a4","block_type":"box","text":"investment banks, and special purpose entities of the foregoing. The cash flow generated by the","page_number":128,"box":{"x":117,"y":645,"width":718,"height":12}},{"id":"c3f5439a-adde-45b8-bec3-59dc0c29c4b8","block_type":"box","text":"mortgage assets underlying a series of CMOs is applied first to make required payments of principal","page_number":128,"box":{"x":117,"y":661,"width":742,"height":12}},{"id":"96a4ae91-8541-4c2e-ba27-1ef03ef08ee7","block_type":"box","text":"and interest on the CMOs and second to pay the related administrative expenses and any","page_number":128,"box":{"x":116,"y":676,"width":668,"height":12}},{"id":"e17766bb-5d1f-4d16-bd7e-c43a71e6ee65","block_type":"box","text":"management fees of the issuer. The residual in a CMO structure generally represents the interest in","page_number":128,"box":{"x":117,"y":692,"width":740,"height":12}},{"id":"d84677a0-fdb5-4bf2-bae7-92b46f5e8d7c","block_type":"box","text":"any excess cash flow remaining after making the foregoing payments. Each payment of such excess","page_number":128,"box":{"x":116,"y":707,"width":748,"height":12}},{"id":"31408269-5d59-4a35-ab29-6785527bba61","block_type":"box","text":"cash flow to a holder of the related CMO residual represents income and/or a return of capital. The","page_number":128,"box":{"x":116,"y":723,"width":733,"height":12}},{"id":"d24ef413-adab-41f4-9a56-4f21b263b489","block_type":"box","text":"amount of residual cash flow resulting from a CMO will depend on, among other things, the","page_number":128,"box":{"x":116,"y":738,"width":676,"height":12}},{"id":"e434d781-2257-4900-b146-58b1c6f7fbce","block_type":"box","text":"characteristics of the mortgage assets, the coupon rate of each class of CMO, prevailing interest rates,","page_number":128,"box":{"x":116,"y":754,"width":762,"height":12}},{"id":"11de7623-bac4-4f5f-b004-2570d5e85be2","block_type":"box","text":"the amount of administrative expenses and the prepayment experience on the mortgage assets. In","page_number":128,"box":{"x":116,"y":769,"width":732,"height":12}},{"id":"76d1b0cc-725c-4cd0-81a3-ed3e0e80568b","block_type":"box","text":"part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the related","page_number":128,"box":{"x":117,"y":785,"width":743,"height":12}},{"id":"996524af-5e2c-4fb6-9186-49c18b9de2e9","block_type":"box","text":"underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":128,"box":{"x":117,"y":800,"width":764,"height":12}},{"id":"0f3a8e14-2fc3-4244-bc8b-42c23f7d196e","block_type":"box","text":"securities. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate,","page_number":128,"box":{"x":116,"y":816,"width":739,"height":12}},{"id":"4053e948-aad5-49e1-8e47-fc825a511bd6","block_type":"box","text":"the yield to maturity on the related CMO residual will also be extremely sensitive to changes in the","page_number":128,"box":{"x":116,"y":831,"width":733,"height":12}},{"id":"8f6332a8-7368-42c4-87e2-0d492c4a77ee","block_type":"box","text":"level of the index upon which interest rate adjustments are based. In certain circumstances, a Fund","page_number":128,"box":{"x":117,"y":847,"width":741,"height":12}},{"id":"6ed030df-1afd-4085-a5a7-9a65f2167963","block_type":"box","text":"may fail to recoup fully its initial investment in a CMO residual.","page_number":128,"box":{"x":117,"y":862,"width":466,"height":12}},{"id":"9800de64-ebe9-4d9f-819c-18ac0a2235dc","block_type":"box","text":"II-69","page_number":128,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"d1e991ce-20a4-4567-8439-9e671620797a","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":128,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"7db9e18a-de94-43a7-b77a-c565213fceae","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more","page_number":129,"box":{"x":117,"y":87,"width":709,"height":12}},{"id":"3f0616a1-7389-44cc-93df-5ff49734c03c","block_type":"box","text":"investment banking firms acting as brokers or dealers. Transactions in CMO residuals are generally","page_number":129,"box":{"x":117,"y":102,"width":744,"height":13}},{"id":"57c48e7b-483f-4b07-88b8-e87aeff1fd0c","block_type":"box","text":"completed only after careful review of the characteristics of the securities in question. In addition, CMO","page_number":129,"box":{"x":116,"y":118,"width":768,"height":12}},{"id":"92562596-8619-4be1-aa5b-ef6a97d555b7","block_type":"box","text":"residuals may or, pursuant to an exemption therefrom, may not have been registered under the","page_number":129,"box":{"x":117,"y":134,"width":711,"height":12}},{"id":"663d7f99-d4e9-40b7-b96d-5878e7060c20","block_type":"box","text":"Securities Act. Residual interests generally are junior to, and may be significantly more volatile than,","page_number":129,"box":{"x":116,"y":149,"width":748,"height":12}},{"id":"516f2574-6905-476b-b9f0-a5e4846f2935","block_type":"box","text":"“regular” CMO and REMIC interests. CMO residuals, whether or not registered under the Securities","page_number":129,"box":{"x":116,"y":165,"width":744,"height":12}},{"id":"29da27c8-6f82-4ee9-949c-817cdb9afac6","block_type":"box","text":"Act, may be subject to certain restrictions on transferability.","page_number":129,"box":{"x":116,"y":180,"width":444,"height":12}},{"id":"6330d8ad-7deb-42e6-931d-d33700b0e128","block_type":"box","text":"Stripped Mortgage-Backed Securities.","page_number":129,"box":{"x":117,"y":207,"width":280,"height":12}},{"id":"3ce488f4-b1ad-4241-98d4-324cfd341293","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities","page_number":129,"box":{"x":399,"y":207,"width":443,"height":12}},{"id":"0ba855af-41f6-4d41-8c13-72bb70e0f769","block_type":"box","text":"(“SMBSs”) issued by agencies or instrumentalities of the United States. SMBSs are derivative multi","page_number":129,"box":{"x":117,"y":223,"width":740,"height":12}},{"id":"91eac739-37eb-4e56-9bcd-e57a37b90c65","block_type":"box","text":"class mortgage-backed securities. SMBS arrangements commonly involve two classes of securities","page_number":129,"box":{"x":116,"y":238,"width":744,"height":12}},{"id":"568ef113-afad-4eed-bc35-13813c3d4dfc","block_type":"box","text":"that receive different proportions of the interest and principal distributions on a pool of mortgage","page_number":129,"box":{"x":116,"y":254,"width":716,"height":12}},{"id":"a605394f-708d-41f9-860e-2f2704142440","block_type":"box","text":"assets. A common variety of SMBS is where one class (the principal only or PO class) receives some","page_number":129,"box":{"x":116,"y":269,"width":759,"height":12}},{"id":"815df275-637b-49a1-a16d-c0e628b75690","block_type":"box","text":"of the interest and most of the principal from the underlying assets, while the other class (the interest","page_number":129,"box":{"x":116,"y":285,"width":752,"height":12}},{"id":"2107047e-f949-41c3-9a2e-62aac4d2ff31","block_type":"box","text":"only or IO class) receives most of the interest and the remainder of the principal. In the most extreme","page_number":129,"box":{"x":116,"y":300,"width":755,"height":12}},{"id":"5b0a3518-6eb0-4aed-a53d-7ce15d3b30bf","block_type":"box","text":"case, the IO class receives all of the interest, while","page_number":129,"box":{"x":116,"y":316,"width":382,"height":11}},{"id":"ff98a01e-8f0e-4ee4-8f33-2bafc061383d","block_type":"box","text":"the PO class receives all of the principal. While a","page_number":129,"box":{"x":498,"y":316,"width":368,"height":12}},{"id":"d1de0330-efc2-4298-9ca4-dbc1d8676ed5","block_type":"box","text":"Fund may purchase securities of a PO class, a Fund is more likely to purchase the securities of an IO","page_number":129,"box":{"x":117,"y":331,"width":758,"height":12}},{"id":"89b0f99e-4cc6-4fe5-a285-ec5b77e48a11","block_type":"box","text":"class. The yield to maturity of an IO class is extremely sensitive to the rate of principal payments","page_number":129,"box":{"x":116,"y":347,"width":720,"height":12}},{"id":"f7512f4f-a0c6-45b0-b7df-50ed705ddb40","block_type":"box","text":"(including prepayments) on the related underlying assets, and a rapid rate of principal prepayments in","page_number":129,"box":{"x":117,"y":362,"width":759,"height":12}},{"id":"23ea9194-e74e-4724-9dee-59d9e4291c62","block_type":"box","text":"excess of that considered in pricing the securities will have a material adverse effect on an IO","page_number":129,"box":{"x":116,"y":378,"width":699,"height":12}},{"id":"310a718d-e396-457f-913a-716efaecf8b2","block_type":"box","text":"security’s yield to maturity. If the underlying mortgage assets experience greater than anticipated","page_number":129,"box":{"x":116,"y":393,"width":724,"height":12}},{"id":"2aed636c-a063-432f-97c1-2fbecc7e603c","block_type":"box","text":"payments of principal, a Fund may fail to recoup fully its initial investment in IOs. In addition, there are","page_number":129,"box":{"x":117,"y":409,"width":760,"height":12}},{"id":"7c372d5a-99fe-4310-9a11-84936144e8f6","block_type":"box","text":"certain types of IOs that represent the interest portion of a particular class as opposed to the interest","page_number":129,"box":{"x":116,"y":424,"width":751,"height":12}},{"id":"96d64e76-284d-4c72-9c03-3bd692b11c8e","block_type":"box","text":"portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":129,"box":{"x":117,"y":440,"width":768,"height":12}},{"id":"dbe04271-7a64-4e3d-9ae6-e1f41162f653","block_type":"box","text":"because of the characteristics of the principal portion to which they relate. As a result of the above","page_number":129,"box":{"x":117,"y":455,"width":733,"height":12}},{"id":"7da8f574-f0b5-4bee-ae10-81308024999a","block_type":"box","text":"factors, a Fund generally will purchase IOs only as a component of so called “synthetic” securities. This","page_number":129,"box":{"x":116,"y":471,"width":772,"height":12}},{"id":"2702cd25-065a-4b0f-90f9-f6369bd53748","block_type":"box","text":"means that purchases of IOs will be matched with certain purchases of other securities, such as POs,","page_number":129,"box":{"x":117,"y":486,"width":759,"height":12}},{"id":"47dd9f11-2ded-4504-84d4-ef3a38c92bc4","block_type":"box","text":"inverse floating rate CMOs or fixed rate securities; as interest rates fall, presenting a greater risk of","page_number":129,"box":{"x":117,"y":502,"width":737,"height":12}},{"id":"3412c477-7ccb-4883-82f0-5f2dcc457c11","block_type":"box","text":"unanticipated prepayments of principal, the negative effect on a Fund because of its holdings of IOs","page_number":129,"box":{"x":117,"y":517,"width":744,"height":12}},{"id":"5aae485d-75a5-4f4e-a4e1-8ca828936ba0","block_type":"box","text":"should be diminished somewhat because of the increased yield on the inverse floating rate CMOs or","page_number":129,"box":{"x":116,"y":533,"width":751,"height":12}},{"id":"9aa4f268-c35d-4074-8c72-556b5530258c","block_type":"box","text":"the increased appreciation on the POs or fixed rate securities.","page_number":129,"box":{"x":116,"y":548,"width":465,"height":12}},{"id":"6854c792-7620-4d27-9ea5-55effeed886e","block_type":"box","text":"Tiered Index Bonds.","page_number":129,"box":{"x":118,"y":576,"width":147,"height":9}},{"id":"261fe6c9-fa69-46b9-b618-e00463678fae","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on","page_number":129,"box":{"x":266,"y":575,"width":612,"height":12}},{"id":"dda92b50-241f-4038-bec7-c1efe6908625","block_type":"box","text":"a tiered index bond is tied to a specified index or","page_number":129,"box":{"x":116,"y":591,"width":365,"height":12}},{"id":"c406660b-34da-4be0-9ff9-1b0f376c3888","block_type":"box","text":"market rate. So long as this index or market rate is","page_number":129,"box":{"x":482,"y":591,"width":380,"height":12}},{"id":"b99f95ef-65e8-4b7c-a79e-563cc57c63af","block_type":"box","text":"below a predetermined “strike” rate, the interest rate on the tiered index bond remains fixed. If,","page_number":129,"box":{"x":117,"y":606,"width":704,"height":12}},{"id":"c851212a-8f80-4d1b-8ef6-e8a89c3464a6","block_type":"box","text":"however, the specified index or market rate rises above the “strike” rate, the interest rate of the tiered","page_number":129,"box":{"x":117,"y":622,"width":754,"height":12}},{"id":"80b4cc4b-798c-43ed-a598-b51afb02389e","block_type":"box","text":"index bond will decrease. Thus, under these circumstances, the interest rate on a tiered index bond,","page_number":129,"box":{"x":117,"y":638,"width":747,"height":11}},{"id":"f024958e-90e9-42c9-b2db-8dff306aeda2","block_type":"box","text":"like an inverse floater, will move in the opposite direction of prevailing interest rates, with the result that","page_number":129,"box":{"x":117,"y":653,"width":767,"height":12}},{"id":"baf030e8-8638-4d18-8888-91c5008bb528","block_type":"box","text":"the price of the tiered index bond may be considerably more volatile than that of a fixed-rate bond.","page_number":129,"box":{"x":116,"y":668,"width":727,"height":12}},{"id":"c836c1e4-fc7b-4ab7-885f-2d00dc558035","block_type":"box","text":"TBA Commitments.","page_number":129,"box":{"x":118,"y":696,"width":142,"height":9}},{"id":"1ed5a0c7-d540-4cc9-b9e1-bde7b9afce04","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA","page_number":129,"box":{"x":267,"y":696,"width":573,"height":12}},{"id":"e380ba16-1a7f-44e9-a334-2ab6674b4e82","block_type":"box","text":"commitments are forward agreements for the purchase or sale of securities, including mortgage","page_number":129,"box":{"x":116,"y":711,"width":716,"height":12}},{"id":"fccb90b0-e770-49b9-a945-3c063ad39ea6","block_type":"box","text":"backed securities for a fixed price, with payment and delivery on an agreed upon future settlement","page_number":129,"box":{"x":117,"y":727,"width":728,"height":12}},{"id":"092bf789-1c20-4f2a-ac66-e57e8833d988","block_type":"box","text":"date. The specific securities to be delivered are not identified at the trade date. However, delivered","page_number":129,"box":{"x":116,"y":742,"width":731,"height":12}},{"id":"88c9a50a-0fa2-49aa-a68b-e7b26e171987","block_type":"box","text":"securities must meet specified terms, including issuer, rate and mortgage terms. When the Fund enters","page_number":129,"box":{"x":116,"y":758,"width":767,"height":12}},{"id":"e457fb78-3439-4352-9249-9d8942b706b6","block_type":"box","text":"into a TBA commitment for the sale of mortgage-backed securities for a fixed price, with payment and","page_number":129,"box":{"x":117,"y":773,"width":752,"height":12}},{"id":"35c1fa6d-707a-4897-8773-a9e05af099d8","block_type":"box","text":"delivery on an agreed upon future settlement date (which may be referred to as having a short position","page_number":129,"box":{"x":116,"y":789,"width":761,"height":12}},{"id":"10d6a168-b442-4e5f-85db-7c49a5c30e00","block_type":"box","text":"in such TBA securities), the Fund may or may not hold the types of mortgage-backed securities","page_number":129,"box":{"x":117,"y":804,"width":707,"height":12}},{"id":"41eb0f3e-0a36-4e3d-ac9c-6e381bfa7f84","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":129,"box":{"x":117,"y":820,"width":733,"height":12}},{"id":"3829cb88-6faf-4fc7-8cbd-b0de646e3e96","block_type":"box","text":"Commitments” below.","page_number":129,"box":{"x":117,"y":835,"width":166,"height":10}},{"id":"4f0499a8-a3c7-4086-9514-6a22d8c07d9a","block_type":"box","text":"Mortgage Dollar Rolls.","page_number":129,"box":{"x":116,"y":862,"width":164,"height":12}},{"id":"298ae49e-586d-4e7d-818e-97d33c17893f","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll","page_number":129,"box":{"x":282,"y":862,"width":562,"height":12}},{"id":"8a8256d0-5534-49ad-9084-f14057789470","block_type":"box","text":"transaction, a Fund sells mortgage-backed securities for delivery in the current month and","page_number":129,"box":{"x":116,"y":878,"width":673,"height":12}},{"id":"c872f897-f341-4efe-ae18-cb69fe1f1571","block_type":"box","text":"II-70","page_number":129,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"c33889db-a3c9-4ac8-9eda-503d85414482","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":129,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2e732934-8c78-4434-b2cc-2311a0352657","block_type":"box","text":"simultaneously contracts to repurchase substantially similar securities on a specified future date. The","page_number":130,"box":{"x":116,"y":87,"width":755,"height":12}},{"id":"f894642f-d89b-4539-b469-0725b5436cc7","block_type":"box","text":"securities that are repurchased will bear the same interest rate and a similar maturity as those sold, but","page_number":130,"box":{"x":116,"y":103,"width":771,"height":12}},{"id":"bec4bf64-cd52-4bf3-b144-6612dd0f2515","block_type":"box","text":"pools of mortgages collateralizing those securities may have different prepayment histories than those","page_number":130,"box":{"x":117,"y":118,"width":762,"height":12}},{"id":"5f16ee77-c31f-4274-b8d7-157fac1c25a1","block_type":"box","text":"sold. During the period between the sale and repurchase, a Fund will not be entitled to receive interest","page_number":130,"box":{"x":116,"y":134,"width":765,"height":12}},{"id":"d3acabe3-bde8-4efa-b582-877f85e86a15","block_type":"box","text":"and principal payments on the securities sold. Proceeds of the sale will be invested in additional","page_number":130,"box":{"x":116,"y":149,"width":716,"height":12}},{"id":"fa4893d3-c54d-4573-8930-bf4ceb7dde16","block_type":"box","text":"instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":130,"box":{"x":117,"y":165,"width":762,"height":12}},{"id":"3e2d5c52-ee6d-4acc-a58d-6169a247753e","block_type":"box","text":"such income does not exceed the income, capital appreciation and gain or loss that would have been","page_number":130,"box":{"x":116,"y":180,"width":757,"height":12}},{"id":"d8c05c76-058c-4c6e-8ee0-cab49ed7b4ef","block_type":"box","text":"realized on the securities sold as part of the dollar roll, the use of this technique will diminish the","page_number":130,"box":{"x":117,"y":196,"width":715,"height":11}},{"id":"7eeccea6-e900-4a30-b29a-91ea19acc3f6","block_type":"box","text":"investment performance of a Fund compared with what the performance would have been without the","page_number":130,"box":{"x":117,"y":211,"width":759,"height":12}},{"id":"b1148086-206c-49e0-959c-3f10fe45f122","block_type":"box","text":"use of dollar rolls.","page_number":130,"box":{"x":117,"y":227,"width":135,"height":9}},{"id":"c46e28d1-4b7d-4c22-b537-bea3bb415d34","block_type":"box","text":"Each mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and","page_number":130,"box":{"x":117,"y":255,"width":760,"height":12}},{"id":"73f6adeb-dd8c-4ebb-ad86-2ef167bcbc69","block_type":"box","text":"a subsequent purchase or sale of a substantially similar security in the forward market. Transactions in","page_number":130,"box":{"x":116,"y":270,"width":767,"height":12}},{"id":"554c29ac-c5c3-40cf-80da-d1906d275d2d","block_type":"box","text":"mortgage dollar rolls may increase trading costs and portfolio turnover.","page_number":130,"box":{"x":117,"y":286,"width":529,"height":12}},{"id":"f77cf382-4467-4686-9161-438ecc1d1f0e","block_type":"box","text":"In the event the buyer of the securities under a mortgage dollar roll files for bankruptcy or becomes","page_number":130,"box":{"x":117,"y":314,"width":738,"height":12}},{"id":"b6e1fe4f-d2c0-48cb-b094-5952c22caf2f","block_type":"box","text":"insolvent, a Fund’s use of the proceeds of the current sale portion of the transaction may be restricted","page_number":130,"box":{"x":117,"y":330,"width":760,"height":12}},{"id":"a4e9ad40-3dd3-498b-b5bd-8ad55e511f62","block_type":"box","text":"pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund’s","page_number":130,"box":{"x":117,"y":345,"width":738,"height":12}},{"id":"75000c28-ea03-419e-aed9-740531267534","block_type":"box","text":"obligation to purchase the similar securities in the forward transaction.","page_number":130,"box":{"x":116,"y":361,"width":525,"height":12}},{"id":"b1555b4b-85ed-4310-afc7-a318e1a06eb9","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar","page_number":130,"box":{"x":116,"y":389,"width":750,"height":12}},{"id":"fafebc25-9463-479d-98c2-2f8517d76e74","block_type":"box","text":"rolls may depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar","page_number":130,"box":{"x":117,"y":405,"width":765,"height":12}},{"id":"bbcfb6e2-d6a3-4ced-bcc0-015b0f319669","block_type":"box","text":"rolls involve the risk that the market value of the securities subject to a Fund’s forward purchase","page_number":130,"box":{"x":117,"y":420,"width":716,"height":12}},{"id":"8aa6a016-5aa5-4b0c-8923-77255ae05354","block_type":"box","text":"commitment may decline below, or the market value of the securities subject to a Fund’s forward sale","page_number":130,"box":{"x":116,"y":436,"width":758,"height":12}},{"id":"952c87a9-e1b7-4c7c-b786-2d958b3cbd02","block_type":"box","text":"commitment may increase above, the exercise price of the forward commitment. Dollar rolls are","page_number":130,"box":{"x":116,"y":451,"width":715,"height":12}},{"id":"601dbaec-b445-46c2-8ed6-e88147ded875","block_type":"box","text":"speculative techniques that can be deemed to involve leverage. There is no assurance that dollar rolls","page_number":130,"box":{"x":116,"y":467,"width":763,"height":12}},{"id":"4a6f1796-7cbb-4a9f-9b2e-e9b4ef8d3982","block_type":"box","text":"can be successfully employed.","page_number":130,"box":{"x":116,"y":482,"width":233,"height":12}},{"id":"9dc85a20-5b29-40a5-9e64-a35ad5e48a8a","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward","page_number":130,"box":{"x":117,"y":511,"width":740,"height":12}},{"id":"2c37aaa9-e4d2-4f53-b1c7-ffc039d21377","block_type":"box","text":"settling securities (e.g., dollar rolls and firm and standby commitments, including TBA commitments)","page_number":130,"box":{"x":116,"y":526,"width":748,"height":12}},{"id":"ca688b7f-259b-4ee1-a8e0-a416fa534d47","block_type":"box","text":"and non-standard settlement cycle securities notwithstanding the limitation on the issuance of senior","page_number":130,"box":{"x":116,"y":542,"width":750,"height":12}},{"id":"e18e24e1-da7f-43b5-a27b-5ce428847c02","block_type":"box","text":"securities in Section 18 of the Investment Company Act, provided that the transaction meets the","page_number":130,"box":{"x":116,"y":557,"width":718,"height":12}},{"id":"ac6ec125-cb0c-4ebe-9dea-38201cea40aa","block_type":"box","text":"Delayed-Settlement Securities Provision (as defined below under “—When-Issued Securities, Delayed","page_number":130,"box":{"x":117,"y":573,"width":764,"height":12}},{"id":"324dc9fb-e77e-4595-98a3-bb9a87ed6df6","block_type":"box","text":"Delivery Securities and Forward Commitments”). If a when-issued, forward-settling or non-standard","page_number":130,"box":{"x":117,"y":588,"width":742,"height":12}},{"id":"19a0583b-2504-45c0-b770-3fd4d10fe313","block_type":"box","text":"settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then it is","page_number":130,"box":{"x":116,"y":604,"width":715,"height":12}},{"id":"baee70ea-76e0-45e6-a676-d97fb670c748","block_type":"box","text":"treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives—Regulation of","page_number":130,"box":{"x":116,"y":619,"width":669,"height":12}},{"id":"29a6c1d9-9985-45a2-8237-f8c8e0527bee","block_type":"box","text":"Derivatives—Rule 18f-4 under the Investment Company Act” above.","page_number":130,"box":{"x":117,"y":635,"width":511,"height":12}},{"id":"470e945a-23cc-4aa7-bf24-7f96ad4acef5","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":130,"box":{"x":117,"y":663,"width":270,"height":12}},{"id":"cf024d9d-c964-4cc2-93d3-675226018b11","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities.","page_number":130,"box":{"x":394,"y":663,"width":438,"height":12}},{"id":"41827d95-0fb0-4a21-9be5-1ee7c7ba70fe","block_type":"box","text":"These securities are derivative interest-only mortgage securities structured off home equity loan","page_number":130,"box":{"x":116,"y":678,"width":711,"height":13}},{"id":"31a21f48-da85-43e6-9365-74e6dd493d36","block_type":"box","text":"transactions. NIM securities receive any “excess” interest computed after paying coupon costs,","page_number":130,"box":{"x":116,"y":694,"width":704,"height":12}},{"id":"19b5f836-edaa-4a51-b169-458e66ac0146","block_type":"box","text":"servicing costs and fees and any credit losses associated with the underlying pool of home equity","page_number":130,"box":{"x":116,"y":709,"width":724,"height":13}},{"id":"83777a64-2864-43d5-a0e1-952850715f4f","block_type":"box","text":"loans. Like traditional stripped mortgage-backed securities, the yield to maturity on a NIM security is","page_number":130,"box":{"x":117,"y":725,"width":740,"height":12}},{"id":"5f45f96b-f959-4ff8-87de-607ffcecec19","block_type":"box","text":"sensitive not only to changes in prevailing interest rates but also to the rate of principal payments","page_number":130,"box":{"x":116,"y":740,"width":720,"height":13}},{"id":"1e2bdbdd-d152-45e9-91ef-229b871d24af","block_type":"box","text":"(including prepayments) on the underlying home equity loans. NIM securities are highly sensitive to","page_number":130,"box":{"x":117,"y":756,"width":735,"height":12}},{"id":"6c61e176-31ea-4660-92eb-ba94cf8191df","block_type":"box","text":"credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":130,"box":{"x":116,"y":772,"width":651,"height":12}},{"id":"5a12f9e7-91da-4c8e-aa3d-b98aff01bb04","block_type":"box","text":"Municipal Investments.","page_number":130,"box":{"x":116,"y":800,"width":184,"height":12}},{"id":"960ee4ab-c141-469b-bebe-7d78369b2c84","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states,","page_number":130,"box":{"x":307,"y":800,"width":533,"height":12}},{"id":"452f070b-bc26-4665-9ce8-68074207af2d","block_type":"box","text":"territories and possessions of the United States and the District of Columbia and their political","page_number":130,"box":{"x":116,"y":815,"width":694,"height":12}},{"id":"cea03ddc-5d9c-43ee-bdc7-e045b9159326","block_type":"box","text":"subdivisions, agencies and instrumentalities, the payments from which, in the opinion of bond counsel","page_number":130,"box":{"x":116,"y":831,"width":761,"height":12}},{"id":"2a96183a-1604-41ea-bd11-39286e3a5cce","block_type":"box","text":"to the issuer, are excludable from gross income for U.S. federal income tax purposes (“Municipal","page_number":130,"box":{"x":116,"y":846,"width":723,"height":12}},{"id":"4d834761-17d5-481a-b060-f6aad9f80fe1","block_type":"box","text":"Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that pay interest","page_number":130,"box":{"x":117,"y":862,"width":691,"height":12}},{"id":"4e5fda31-cc48-410c-b8fe-094df3fd14b1","block_type":"box","text":"excludable from gross income for purposes of state and local income taxes of the designated state","page_number":130,"box":{"x":116,"y":877,"width":737,"height":12}},{"id":"8388b73d-8c13-4274-9897-aca731787c8e","block_type":"box","text":"II-71","page_number":130,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"e036d043-6e19-454a-bd3e-cb1e2b96b50b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":130,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"040fe318-ee4b-4331-9a14-9e45d1c5e815","block_type":"box","text":"and/or allow the value of a Fund’s shares to be exempt from state and local taxes of the designated","page_number":131,"box":{"x":116,"y":87,"width":744,"height":12}},{"id":"c9967d12-e366-494f-9def-619311688e3d","block_type":"box","text":"state (“State Municipal Bonds”). The Municipal Funds may also invest in securities not issued by or on","page_number":131,"box":{"x":116,"y":102,"width":762,"height":13}},{"id":"78be2082-f482-48a3-9d39-10837a5f91e2","block_type":"box","text":"behalf of a state or territory or by an agency or instrumentality thereof, if the Manager believes such","page_number":131,"box":{"x":117,"y":118,"width":743,"height":12}},{"id":"4c2422b8-3c3e-4baa-8aad-4bac60926e54","block_type":"box","text":"securities to pay interest excludable from gross income for purposes of U.S. federal income tax and","page_number":131,"box":{"x":116,"y":134,"width":744,"height":12}},{"id":"550b9b00-40b1-4b08-ba1e-32a3e0213bd7","block_type":"box","text":"state and local income taxes of the designated state and/or state and local personal property taxes of","page_number":131,"box":{"x":116,"y":149,"width":757,"height":12}},{"id":"bd8a72fc-d1b6-497e-b2bb-c059ec2a3de0","block_type":"box","text":"the designated state (“Non-Municipal Tax-Exempt Securities”). Non-Municipal Tax-Exempt Securities","page_number":131,"box":{"x":116,"y":165,"width":756,"height":12}},{"id":"8f1fb14f-824f-4232-bd40-bf46d340b177","block_type":"box","text":"could include trust certificates or other instruments evidencing interest in one or more long-term","page_number":131,"box":{"x":116,"y":180,"width":714,"height":12}},{"id":"8360f297-544e-40ec-b23f-bacb11a174cb","block_type":"box","text":"municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":131,"box":{"x":117,"y":196,"width":765,"height":12}},{"id":"ac37c6f3-856a-4b0f-b7df-5e3140266121","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by","page_number":131,"box":{"x":117,"y":211,"width":760,"height":12}},{"id":"1ef6d1b0-95e6-4fa1-b6d9-bb878943b5e2","block_type":"box","text":"applicable law. Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income","page_number":131,"box":{"x":116,"y":227,"width":754,"height":12}},{"id":"2765aee4-6f1d-4d01-9ed1-942efd616108","block_type":"box","text":"for U.S. federal income tax purposes will be considered “Municipal Bonds” for purposes of a Municipal","page_number":131,"box":{"x":116,"y":242,"width":762,"height":12}},{"id":"85cb6706-bb69-4d6f-9be2-b76bde14dfc6","block_type":"box","text":"Fund’s investment objective and policies. Non-Municipal Tax-Exempt Securities that pay interest","page_number":131,"box":{"x":117,"y":258,"width":720,"height":12}},{"id":"5dbed6e9-2ff2-4115-90c7-dcc9ad8fd7ad","block_type":"box","text":"excludable from gross income for purposes of U.S. federal income tax and state and local income","page_number":131,"box":{"x":116,"y":273,"width":730,"height":12}},{"id":"6da8fec0-080b-43f9-82d6-65ba0df6e85a","block_type":"box","text":"taxes of a designated state and/or allow the value of a Fund’s shares to be exempt from state and local","page_number":131,"box":{"x":116,"y":289,"width":771,"height":12}},{"id":"ccbe7fae-c26b-4967-bc96-55ce3f351f39","block_type":"box","text":"personal property taxes of that state will be considered “State Municipal Bonds” for purposes of the","page_number":131,"box":{"x":117,"y":304,"width":739,"height":12}},{"id":"f00f33b5-4d88-402b-8100-4b23a98835fb","block_type":"box","text":"investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":131,"box":{"x":117,"y":320,"width":724,"height":12}},{"id":"5646320c-e49d-423c-a4ee-dc2e8ebd3568","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond","page_number":131,"box":{"x":117,"y":335,"width":724,"height":12}},{"id":"5a323f16-06b7-47f9-97c1-7ddefa7d49f3","block_type":"box","text":"Fund.","page_number":131,"box":{"x":117,"y":351,"width":46,"height":9}},{"id":"175f6e96-9b9b-49cf-8491-86548dd0bbf7","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":131,"box":{"x":116,"y":380,"width":519,"height":12}},{"id":"6f86ed52-468f-4ef0-bd4b-271f32b366b7","block_type":"box","text":"The risks and special","page_number":131,"box":{"x":636,"y":380,"width":168,"height":12}},{"id":"fd1a7075-f5e9-4a66-bb65-b3ac753ef338","block_type":"box","text":"considerations involved in investment in Municipal Bonds vary with the types of instruments being","page_number":131,"box":{"x":116,"y":395,"width":729,"height":12}},{"id":"79589bec-1a7e-4597-a4da-112cd9fa9759","block_type":"box","text":"acquired. Investments in Non-Municipal Tax-Exempt Securities may present similar risks, depending","page_number":131,"box":{"x":116,"y":411,"width":751,"height":12}},{"id":"5f28ba65-7b6c-4158-b158-ee2cb1bee748","block_type":"box","text":"on the particular product. Certain municipal instruments in which a Fund may invest may be","page_number":131,"box":{"x":116,"y":426,"width":685,"height":12}},{"id":"fb5fcb6a-4183-4e87-b3b9-b8646a3a257f","block_type":"box","text":"characterized as derivatives.","page_number":131,"box":{"x":116,"y":442,"width":218,"height":9}},{"id":"bd4ea406-3229-43be-95cf-6e4208c0cd3f","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncertainties in the municipal markets as a","page_number":131,"box":{"x":116,"y":471,"width":768,"height":12}},{"id":"00d7c862-5c46-46df-a9c7-e4fb62450049","block_type":"box","text":"result of legislation or litigation, including legislation or litigation that changes the taxation of Municipal","page_number":131,"box":{"x":117,"y":487,"width":757,"height":12}},{"id":"cf543d2e-8b77-40b4-b6c7-676786cd3c48","block_type":"box","text":"Bonds or the rights of Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are","page_number":131,"box":{"x":117,"y":502,"width":764,"height":12}},{"id":"81107577-c481-4d24-86fe-897be0fd9985","block_type":"box","text":"rare and certain provisions of the U.S. Bankruptcy Code governing such bankruptcies are unclear.","page_number":131,"box":{"x":117,"y":518,"width":732,"height":12}},{"id":"4c3038a6-b502-4b62-95b2-c5ea811d671c","block_type":"box","text":"Further, the application of state law to Municipal Bond issuers could produce varying results among the","page_number":131,"box":{"x":117,"y":533,"width":770,"height":12}},{"id":"c553d0fd-881e-4ab0-becb-daaa927e0230","block_type":"box","text":"states or among Municipal Bond issuers within a state. These uncertainties could have a significant","page_number":131,"box":{"x":116,"y":549,"width":742,"height":12}},{"id":"442b05ef-3bfc-43be-8f2d-dc631ecbde2a","block_type":"box","text":"impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":131,"box":{"x":117,"y":564,"width":513,"height":12}},{"id":"94f2d1d8-4c8c-4910-ae06-90b4d88e7100","block_type":"box","text":"Description of Municipal Bonds.","page_number":131,"box":{"x":116,"y":593,"width":240,"height":12}},{"id":"02577b28-16fe-41a3-8e69-f59c7c55318c","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including","page_number":131,"box":{"x":117,"y":616,"width":757,"height":12}},{"id":"25d4ec4e-3e87-4d6c-bec6-16b0f5ef101a","block_type":"box","text":"the construction of a wide range of public facilities, refunding of outstanding obligations and obtaining","page_number":131,"box":{"x":116,"y":631,"width":756,"height":12}},{"id":"970daa82-34ce-4bdc-a033-d07f7863fe54","block_type":"box","text":"funds for general operating expenses and loans to other public institutions and facilities. In addition,","page_number":131,"box":{"x":116,"y":647,"width":744,"height":12}},{"id":"57862161-5ab9-4742-a397-c228e8035d91","block_type":"box","text":"certain types of bonds are issued by or on behalf of public authorities to finance various privately","page_number":131,"box":{"x":116,"y":662,"width":716,"height":12}},{"id":"d1ea492f-ac0e-4757-8f25-e9bb5c571d74","block_type":"box","text":"owned or operated facilities, including certain facilities for the local furnishing of electric energy or gas,","page_number":131,"box":{"x":116,"y":678,"width":757,"height":12}},{"id":"82d42b4b-ff18-488e-ac98-95a5c8e61a40","block_type":"box","text":"sewage facilities, solid waste disposal facilities and other specialized facilities. Such obligations are","page_number":131,"box":{"x":116,"y":693,"width":735,"height":12}},{"id":"2bbe2c7d-af9c-48ac-a385-ca8f997d0253","block_type":"box","text":"included within the term Municipal Bonds if the interest paid thereon is excluded from gross income for","page_number":131,"box":{"x":117,"y":709,"width":760,"height":12}},{"id":"47473a04-6546-43f2-9b5d-1c0ec99963d1","block_type":"box","text":"U.S. federal income tax purposes and any applicable state and local taxes. Other types of private","page_number":131,"box":{"x":117,"y":724,"width":721,"height":12}},{"id":"777698a2-f500-4e16-844a-2c11f7ceef5c","block_type":"box","text":"activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":131,"box":{"x":116,"y":740,"width":722,"height":12}},{"id":"7970a69d-28f9-48c4-8139-cd81e99159ef","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the","page_number":131,"box":{"x":117,"y":755,"width":727,"height":12}},{"id":"693799d6-8ba6-4ad2-9db8-e8422afe6dfe","block_type":"box","text":"current U.S. federal tax laws place substantial limitations on the size of such issues. The interest on","page_number":131,"box":{"x":116,"y":771,"width":739,"height":12}},{"id":"93314231-0b06-4050-b717-66f0ff56d49f","block_type":"box","text":"Municipal Bonds may bear a fixed rate or be payable at a variable or floating rate. The two principal","page_number":131,"box":{"x":117,"y":786,"width":736,"height":12}},{"id":"a7b43ec9-1040-4f91-99dd-a679e81026ac","block_type":"box","text":"classifications of Municipal Bonds are “general obligation” and “revenue” or “special obligation” bonds,","page_number":131,"box":{"x":116,"y":802,"width":756,"height":12}},{"id":"1d1e938e-0e4a-48d0-84c4-7b802731f895","block_type":"box","text":"which latter category includes private activity bonds (“PABs”) (or “industrial development bonds” under","page_number":131,"box":{"x":116,"y":817,"width":760,"height":12}},{"id":"7f2853ef-0626-4314-b978-3c2655d86109","block_type":"box","text":"pre-1986 law).","page_number":131,"box":{"x":117,"y":833,"width":111,"height":12}},{"id":"3d0cffff-6b75-4ec9-a429-7aac5a5c5c7c","block_type":"box","text":"General Obligation Bonds.","page_number":131,"box":{"x":117,"y":862,"width":194,"height":12}},{"id":"6b33141f-5b33-4ab9-afb6-7edd7dace0bc","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith,","page_number":131,"box":{"x":313,"y":862,"width":565,"height":12}},{"id":"f0ef225d-684d-44d1-bdd1-a098d86a409d","block_type":"box","text":"credit and taxing power for the payment of principal and interest. The taxing power of any","page_number":131,"box":{"x":116,"y":878,"width":668,"height":12}},{"id":"7022dfa9-03e2-426b-9438-10ae1847b998","block_type":"box","text":"II-72","page_number":131,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"e832b04d-d7c6-4118-8c5a-56025f63ba53","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":131,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"aa2031bb-47e9-44ba-a03e-541475e0269d","block_type":"box","text":"governmental entity may be limited, however, by provisions of its state constitution or laws, and an","page_number":132,"box":{"x":116,"y":87,"width":735,"height":12}},{"id":"9691f3bc-db08-4c79-9182-3581c72b3d88","block_type":"box","text":"entity’s creditworthiness will depend on many factors, including potential erosion of its tax base due to","page_number":132,"box":{"x":116,"y":102,"width":760,"height":13}},{"id":"58809978-e34a-4dba-a89e-d17a1a7e0e02","block_type":"box","text":"population declines, natural disasters, declines in the state’s industrial base or inability to attract new","page_number":132,"box":{"x":117,"y":118,"width":750,"height":12}},{"id":"5a26a977-ae47-4a3c-a14c-8c00d128079b","block_type":"box","text":"industries, economic limits on the ability to tax without eroding the tax base, state legislative proposals","page_number":132,"box":{"x":117,"y":134,"width":762,"height":12}},{"id":"23ee028b-c871-4e91-87dc-fceeda9161aa","block_type":"box","text":"or voter initiatives to limit ad valorem real property taxes and the extent to which the entity relies on","page_number":132,"box":{"x":116,"y":149,"width":740,"height":12}},{"id":"d115d32c-d70c-4e02-a3d8-30795c52c8a7","block_type":"box","text":"federal or state aid, access to capital markets or other factors beyond the state’s or entity’s control.","page_number":132,"box":{"x":116,"y":165,"width":738,"height":12}},{"id":"8650dcfe-aa7e-43ac-9356-839ab67a9bca","block_type":"box","text":"Accordingly, the capacity of the issuer of a general obligation bond as to the timely payment of interest","page_number":132,"box":{"x":116,"y":180,"width":765,"height":12}},{"id":"707db977-07ad-42a9-aaed-dd141556290a","block_type":"box","text":"and the repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":132,"box":{"x":116,"y":196,"width":717,"height":12}},{"id":"2df77dfe-a58e-4c14-b0d5-b2164413ba4a","block_type":"box","text":"Revenue Bonds.","page_number":132,"box":{"x":116,"y":227,"width":122,"height":9}},{"id":"31567133-217a-427c-96c1-6e635c6cf1ab","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility","page_number":132,"box":{"x":240,"y":227,"width":634,"height":12}},{"id":"a8f5a97c-3902-4d72-8f44-814e8d3f7233","block_type":"box","text":"or class of facilities or, in some cases, from the proceeds of a special excise tax or other specific","page_number":132,"box":{"x":116,"y":242,"width":720,"height":12}},{"id":"77434c1a-2bb4-4dfe-98f5-48f33f97caa7","block_type":"box","text":"revenue source such as payments from the user of the facility being financed; accordingly, the timely","page_number":132,"box":{"x":117,"y":258,"width":752,"height":12}},{"id":"3f0d8c48-ac1d-4e43-80f9-b202c0da2c3f","block_type":"box","text":"payment of interest and the repayment of principal in accordance with the terms of the revenue or","page_number":132,"box":{"x":117,"y":273,"width":729,"height":12}},{"id":"1662883b-7eb8-4770-aef2-a25885a1ee1b","block_type":"box","text":"special obligation bond is a function of the economic viability of such facility or such revenue source.","page_number":132,"box":{"x":116,"y":289,"width":749,"height":12}},{"id":"0fe0fda9-d83c-4412-84f5-fba29ed63e75","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi","page_number":132,"box":{"x":117,"y":320,"width":730,"height":12}},{"id":"dd1966d7-b65c-43c7-a2a5-411661332e25","block_type":"box","text":"family housing involve special risks in addition to those associated with municipal bonds generally,","page_number":132,"box":{"x":116,"y":335,"width":735,"height":12}},{"id":"80b06058-cac1-4f4a-9596-b998a6a6e7db","block_type":"box","text":"including that the underlying properties may not generate sufficient income to pay expenses and","page_number":132,"box":{"x":117,"y":351,"width":718,"height":12}},{"id":"cad1e31d-4124-405c-9bc0-d0588a2fca05","block_type":"box","text":"interest costs. Such bonds are generally non-recourse against the property owner, may be junior to the","page_number":132,"box":{"x":117,"y":366,"width":768,"height":12}},{"id":"4b638579-d0ac-4000-a82d-c1f8950cbbbc","block_type":"box","text":"rights of others with an interest in the properties, may pay interest that changes based in part on the","page_number":132,"box":{"x":117,"y":382,"width":746,"height":12}},{"id":"a2f32902-9790-4fcf-8bfd-b1ff7e232eee","block_type":"box","text":"financial performance of the property, may be prepayable without penalty and may be used to finance","page_number":132,"box":{"x":116,"y":397,"width":760,"height":12}},{"id":"05de7f13-d667-417b-adc8-1f96b6c2737f","block_type":"box","text":"the construction of housing developments which, until completed and rented, do not generate income","page_number":132,"box":{"x":116,"y":413,"width":757,"height":12}},{"id":"e20ca603-7f07-41c6-b3a8-ac76db0f8a11","block_type":"box","text":"to pay interest. Increases in interest rates payable on senior obligations may make it more difficult for","page_number":132,"box":{"x":116,"y":428,"width":755,"height":12}},{"id":"d1a646c1-831c-4de0-9f43-edeef0e2cb29","block_type":"box","text":"issuers to meet payment obligations on subordinated bonds.","page_number":132,"box":{"x":117,"y":444,"width":452,"height":12}},{"id":"14eca162-e8d8-4e15-8867-32bdbf58860a","block_type":"box","text":"PABs.","page_number":132,"box":{"x":116,"y":475,"width":45,"height":9}},{"id":"178d2ef3-d2f7-42f4-b94e-c0dbe4da53e8","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public","page_number":132,"box":{"x":162,"y":475,"width":666,"height":12}},{"id":"6643a8f7-721a-42bf-ac6a-dffd56be17ea","block_type":"box","text":"authorities to provide funds, usually through a loan or lease arrangement, to a private entity for the","page_number":132,"box":{"x":116,"y":490,"width":735,"height":12}},{"id":"c16b3cbd-dee0-4a4f-98e4-8d3f9299edef","block_type":"box","text":"purpose of financing construction or improvement of a facility to be used by the entity. Such bonds are","page_number":132,"box":{"x":117,"y":506,"width":762,"height":12}},{"id":"10a6cbd8-6fcd-4370-a3e3-646d5da31c9e","block_type":"box","text":"secured primarily by revenues derived from loan repayments or lease payments due from the entity,","page_number":132,"box":{"x":116,"y":521,"width":747,"height":12}},{"id":"561f8581-706c-4237-8098-644362e15476","block_type":"box","text":"which may or may not be guaranteed by a parent company or otherwise secured. PABs generally are","page_number":132,"box":{"x":116,"y":537,"width":758,"height":12}},{"id":"05e2c4e1-1e2a-4a61-9a30-14d052fbaed9","block_type":"box","text":"not secured by a pledge of the taxing power of the issuer of such bonds. Therefore, an investor should","page_number":132,"box":{"x":117,"y":552,"width":764,"height":12}},{"id":"9fd7f52a-f071-4260-aa86-838482617109","block_type":"box","text":"understand that repayment of such bonds generally depends on the revenues of a private entity and be","page_number":132,"box":{"x":117,"y":568,"width":771,"height":12}},{"id":"c859b997-d347-4053-9b9b-3e11fe942835","block_type":"box","text":"aware of the risks that such an investment may entail. The continued ability of an entity to generate","page_number":132,"box":{"x":116,"y":583,"width":741,"height":12}},{"id":"910e48df-310c-44c4-ab44-beee7c3a58f7","block_type":"box","text":"sufficient revenues for the payment of principal and interest on such bonds will be affected by many","page_number":132,"box":{"x":116,"y":599,"width":744,"height":12}},{"id":"a306a96e-cc7c-4983-a3be-9f93ce55a52c","block_type":"box","text":"factors including the size of the entity, its capital structure, demand for its products or services,","page_number":132,"box":{"x":116,"y":614,"width":707,"height":12}},{"id":"b28b44d5-4f59-42c1-99d3-06ed1f9f47ce","block_type":"box","text":"competition, general economic conditions, government regulation and the entity’s dependence on","page_number":132,"box":{"x":116,"y":630,"width":728,"height":12}},{"id":"c1c49142-199d-4206-ac1c-b6fb356611cf","block_type":"box","text":"revenues for the operation of the particular facility being financed.","page_number":132,"box":{"x":117,"y":645,"width":491,"height":12}},{"id":"6ec722c6-3390-4ac5-a975-0bbe55936324","block_type":"box","text":"Moral Obligation Bonds.","page_number":132,"box":{"x":116,"y":676,"width":178,"height":12}},{"id":"b9d7ce15-16a5-4474-8f7a-e2858d5c7160","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public","page_number":132,"box":{"x":301,"y":676,"width":523,"height":12}},{"id":"33e64317-eb7b-4f47-a94d-9ef2e5b38b86","block_type":"box","text":"authorities. If an issuer of moral obligation bonds is unable to meet its obligations, the repayment of","page_number":132,"box":{"x":116,"y":692,"width":738,"height":12}},{"id":"02490271-a65b-41c4-8ff1-b7ab4286b443","block_type":"box","text":"such bonds becomes a moral commitment but not a legal obligation of the state or municipality that","page_number":132,"box":{"x":116,"y":707,"width":736,"height":12}},{"id":"39cdd757-c9e7-4a00-8fc2-b0038f6b5876","block_type":"box","text":"created the special purpose public authority that issued the bonds.","page_number":132,"box":{"x":116,"y":723,"width":492,"height":12}},{"id":"f0547752-7181-47a5-90bc-dab6f347eea6","block_type":"box","text":"Municipal Notes.","page_number":132,"box":{"x":116,"y":754,"width":122,"height":12}},{"id":"2ca51c02-3a56-4fce-90ef-f56192ac2af3","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim","page_number":132,"box":{"x":246,"y":754,"width":636,"height":12}},{"id":"ddcef61d-903e-44eb-aed4-a54939dedd4b","block_type":"box","text":"financing in anticipation of tax collection, bond sales or revenue receipts. If there is a shortfall in the","page_number":132,"box":{"x":116,"y":769,"width":737,"height":12}},{"id":"6faf54ba-f49b-420a-a362-ed45f16344b4","block_type":"box","text":"anticipated proceeds, repayment on the note may be delayed or the note may not be fully repaid, and a","page_number":132,"box":{"x":116,"y":785,"width":766,"height":12}},{"id":"14c64ac1-a6c9-4ff1-8f7b-3b74efdaaa32","block_type":"box","text":"Fund may lose money.","page_number":132,"box":{"x":117,"y":800,"width":167,"height":12}},{"id":"8da4dc05-36e6-44fe-be49-90335752668b","block_type":"box","text":"Municipal Commercial Paper.","page_number":132,"box":{"x":116,"y":831,"width":218,"height":12}},{"id":"4448db8b-4609-4b61-a64d-e092cfe462e3","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet","page_number":132,"box":{"x":335,"y":831,"width":539,"height":12}},{"id":"2656e614-0e31-41d8-ab0b-71a7ab4f2336","block_type":"box","text":"short-term financing needs. The lack of security presents some risk of loss to a Fund since, in the","page_number":132,"box":{"x":116,"y":847,"width":728,"height":12}},{"id":"6c1430c7-2606-49b5-88a4-6a18e30f8bea","block_type":"box","text":"event of an issuer’s bankruptcy, unsecured creditors are repaid only after the secured creditors out of","page_number":132,"box":{"x":116,"y":862,"width":757,"height":12}},{"id":"b2cae361-f0c5-45ee-b387-7ade45748773","block_type":"box","text":"the assets, if any, that remain.","page_number":132,"box":{"x":116,"y":878,"width":229,"height":12}},{"id":"1384c2c9-b099-4560-a5ae-05ed2c844d93","block_type":"box","text":"II-73","page_number":132,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"df05ec16-3147-4f8f-a55a-3fc96d09a4ca","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":132,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0b9a7510-e2a0-43a9-a04b-cbf8c2478bc9","block_type":"box","text":"Municipal Lease Obligations.","page_number":133,"box":{"x":116,"y":87,"width":213,"height":12}},{"id":"40268319-54c8-4b9e-90af-46dacc7ef746","block_type":"box","text":"Also included within the general category of Municipal Bonds are","page_number":133,"box":{"x":331,"y":87,"width":491,"height":12}},{"id":"eef86044-10e1-4e71-aa16-55d18a7867fd","block_type":"box","text":"certificates of participation (“COPs”) issued by government authorities or entities to finance the","page_number":133,"box":{"x":116,"y":102,"width":706,"height":13}},{"id":"279ca5f8-5f49-4f7e-b607-8d0f5febfe22","block_type":"box","text":"acquisition or construction of equipment, land and/or facilities. The COPs represent participations in a","page_number":133,"box":{"x":116,"y":118,"width":758,"height":12}},{"id":"62779676-d104-45af-a67a-dd027206de5b","block_type":"box","text":"lease, an installment purchase contract or a conditional sales contract (hereinafter collectively called","page_number":133,"box":{"x":117,"y":134,"width":748,"height":12}},{"id":"efeb2208-d316-4290-bf9a-0dd28e8b6878","block_type":"box","text":"“lease obligations”) relating to such equipment, land or facilities. Municipal leases, like other municipal","page_number":133,"box":{"x":116,"y":149,"width":761,"height":12}},{"id":"a2814569-70ec-440f-98d2-f725d264c880","block_type":"box","text":"debt obligations, are subject to the risk of non-payment. Although lease obligations do not constitute","page_number":133,"box":{"x":116,"y":165,"width":747,"height":12}},{"id":"5a9b7612-7808-40b2-b15f-e7cb4632d014","block_type":"box","text":"general obligations of the issuer for which the issuer’s unlimited taxing power is pledged, a lease","page_number":133,"box":{"x":116,"y":180,"width":721,"height":12}},{"id":"2fe038df-8f85-4cda-809b-3c81efae1869","block_type":"box","text":"obligation is frequently backed by the issuer’s covenant to budget for, appropriate and make the","page_number":133,"box":{"x":116,"y":196,"width":716,"height":12}},{"id":"2e9ac96f-eadc-45b8-ac16-edfd3a854fc3","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain","page_number":133,"box":{"x":117,"y":211,"width":631,"height":12}},{"id":"0b809087-9efb-4f0f-b107-928c2ae35f09","block_type":"box","text":"“non-appropriation” clauses, which provide that the issuer has no obligation to make lease or","page_number":133,"box":{"x":116,"y":227,"width":693,"height":12}},{"id":"616cd7fa-c080-4c2e-8d2a-90b888fe8025","block_type":"box","text":"installment purchase payments in future years unless money is appropriated for such purpose on a","page_number":133,"box":{"x":117,"y":242,"width":739,"height":12}},{"id":"b9664c53-ff3d-4f81-8157-b2bec7a11480","block_type":"box","text":"yearly basis. Although “non-appropriation” lease obligations are secured by the leased property,","page_number":133,"box":{"x":116,"y":258,"width":716,"height":12}},{"id":"87ee633e-1e97-4d66-b6bc-974cf39c00bf","block_type":"box","text":"disposition of the property in the event of foreclosure might prove difficult. These securities represent a","page_number":133,"box":{"x":116,"y":273,"width":767,"height":12}},{"id":"e67e5dfd-b834-4e03-bc00-1a7c6546a63c","block_type":"box","text":"type of financing that has not yet developed the depth of marketability associated with more","page_number":133,"box":{"x":116,"y":289,"width":685,"height":12}},{"id":"5e7d74f2-9d69-44ed-a8a2-12cb9e1eae20","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":133,"box":{"x":116,"y":304,"width":596,"height":12}},{"id":"492d5c6a-cdf4-4fbe-ab01-92ed09a0d3bd","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in","page_number":133,"box":{"x":116,"y":335,"width":769,"height":12}},{"id":"01ad0901-98da-4472-9c59-d3b4ed437de1","block_type":"box","text":"general economic downturns and as relative governmental cost burdens are allocated and reallocated","page_number":133,"box":{"x":116,"y":351,"width":762,"height":12}},{"id":"f80522d9-6572-46ba-940b-52ad555171a1","block_type":"box","text":"among federal, state and local governmental units. Such non-payment would result in a reduction of","page_number":133,"box":{"x":116,"y":366,"width":746,"height":12}},{"id":"ff56f839-9bf0-4c51-9a94-16ff0bfea51a","block_type":"box","text":"income to a Fund and could result in a","page_number":133,"box":{"x":117,"y":382,"width":289,"height":9}},{"id":"1a3c544b-3840-4bc6-b859-3c450ef5615f","block_type":"box","text":"reduction in the value of the municipal lease experiencing","page_number":133,"box":{"x":407,"y":382,"width":431,"height":12}},{"id":"f4f8d251-b416-4f7a-9a30-f993830bf4aa","block_type":"box","text":"non-payment and a potential decrease in the NAV of a Fund. Issuers of municipal securities might","page_number":133,"box":{"x":117,"y":397,"width":731,"height":12}},{"id":"e286982e-f092-4757-9095-6bebb151012c","block_type":"box","text":"seek protection under the bankruptcy laws. In the event of bankruptcy of such an issuer, a Fund could","page_number":133,"box":{"x":116,"y":413,"width":762,"height":12}},{"id":"1b66ea3f-5e90-4b24-85bc-16666fd1ede3","block_type":"box","text":"experience delays and limitations with respect to the collection of principal and interest on such","page_number":133,"box":{"x":116,"y":428,"width":711,"height":12}},{"id":"6f72e0ec-b46f-489a-8863-a38c6a860fbe","block_type":"box","text":"municipal leases and a Fund may not, in all circumstances, be able to collect all principal and interest","page_number":133,"box":{"x":117,"y":444,"width":755,"height":12}},{"id":"a0eb00c1-bed7-45ad-b5d4-f91246d48a56","block_type":"box","text":"to which it is entitled. To enforce its rights in the event of a default in lease payments, a Fund might","page_number":133,"box":{"x":116,"y":459,"width":740,"height":12}},{"id":"c150e5a9-526d-4230-b5d1-ac70ec80adbd","block_type":"box","text":"take possession of and manage the assets securing the issuer’s obligations on such securities, which","page_number":133,"box":{"x":116,"y":475,"width":758,"height":12}},{"id":"45cd7b5f-1cb8-40f2-a189-14c18efec2e3","block_type":"box","text":"may increase a Fund’s operating expenses and adversely affect the NAV of a Fund. When the lease","page_number":133,"box":{"x":117,"y":490,"width":749,"height":12}},{"id":"bd0bd4cc-a734-44ff-b3eb-0e2eae77c49c","block_type":"box","text":"contains a non-appropriation clause, however, the failure to pay would not be a default and a Fund","page_number":133,"box":{"x":116,"y":506,"width":737,"height":12}},{"id":"e0ba4192-3ec5-4ae5-a0fc-389c8474b001","block_type":"box","text":"would not have the right to take possession of the assets. Any income derived from a Fund’s","page_number":133,"box":{"x":116,"y":521,"width":692,"height":12}},{"id":"0d4aa25a-fddf-4b65-9899-f87bdebe274e","block_type":"box","text":"ownership or operation of such assets may not be tax-exempt. In addition, a Fund’s intention to qualify","page_number":133,"box":{"x":116,"y":537,"width":765,"height":12}},{"id":"8c68a6be-3878-40f9-a6a5-677f15d23f49","block_type":"box","text":"as a “regulated investment company” under the Code, may limit the extent to which a Fund may","page_number":133,"box":{"x":116,"y":552,"width":717,"height":12}},{"id":"146aa243-51f3-4972-8257-88a1053196a9","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a","page_number":133,"box":{"x":116,"y":568,"width":765,"height":12}},{"id":"bb8e30ff-0789-41a9-a847-86c6022d9913","block_type":"box","text":"Fund is subject to certain limitations on its investments and on the nature of its income.","page_number":133,"box":{"x":117,"y":583,"width":650,"height":12}},{"id":"3f223ef7-7d4b-4cbb-ad85-0113d5d918cf","block_type":"box","text":"Tender Option Bonds.","page_number":133,"box":{"x":118,"y":614,"width":161,"height":12}},{"id":"669db2ff-b72f-4325-ac66-c1e7eb202df9","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option","page_number":133,"box":{"x":280,"y":614,"width":596,"height":12}},{"id":"4117b2ce-d65b-4603-a5ff-bff99b0c5be2","block_type":"box","text":"bonds (“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in","page_number":133,"box":{"x":117,"y":630,"width":736,"height":12}},{"id":"3cca39c2-0baa-4e4b-9b5d-e1b78b8ab46d","block_type":"box","text":"which the Funds will invest pay interest or income that, in the opinion of counsel to the issuer, is","page_number":133,"box":{"x":116,"y":645,"width":715,"height":12}},{"id":"26e1df76-09ab-4fd2-9bcb-c343de5172e0","block_type":"box","text":"exempt from regular U.S. federal income tax. BlackRock will not conduct its own analysis of the tax","page_number":133,"box":{"x":116,"y":661,"width":735,"height":12}},{"id":"87ef4648-f18f-405e-becd-60f6e13d143b","block_type":"box","text":"status of the interest or income paid by TOB Residuals held by the Funds, but will rely on the opinion of","page_number":133,"box":{"x":116,"y":676,"width":767,"height":12}},{"id":"537b0416-857d-4e6c-9a94-2debc5bf3855","block_type":"box","text":"counsel to the issuer. Although volatile, TOB Residuals typically offer the potential for yields exceeding","page_number":133,"box":{"x":116,"y":692,"width":761,"height":12}},{"id":"38bda2a3-79be-4343-987a-200451386ba7","block_type":"box","text":"the yields available on fixed rate Municipal Bonds with comparable credit quality. The Funds may","page_number":133,"box":{"x":116,"y":707,"width":720,"height":12}},{"id":"0cc78173-1aa1-4a01-b003-49966b8e52d2","block_type":"box","text":"invest in TOB Residuals for the purpose of using economic leverage.","page_number":133,"box":{"x":117,"y":723,"width":509,"height":12}},{"id":"3710e189-a61e-4a7a-96eb-014b70c0ec48","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of","page_number":133,"box":{"x":116,"y":754,"width":719,"height":12}},{"id":"997798c5-9b74-42c4-9f39-d30a67851aa0","block_type":"box","text":"holding Municipal Bonds contributed by one or more funds (a “TOB Trust”). A TOB Trust typically","page_number":133,"box":{"x":117,"y":769,"width":719,"height":12}},{"id":"29f21d8f-0cbd-46d3-9f5d-b69b6ec3b412","block_type":"box","text":"issues two classes of beneficial interests: short-term floating rate interests (“TOB Floaters”), which are","page_number":133,"box":{"x":117,"y":785,"width":756,"height":12}},{"id":"50a11c57-6050-412b-8fab-5d96361f2d02","block_type":"box","text":"sold to third-party investors, and TOB Residuals, which are generally issued to the fund(s) that","page_number":133,"box":{"x":116,"y":800,"width":701,"height":12}},{"id":"57b0705a-8412-41b8-8203-ac1e26492d06","block_type":"box","text":"transferred Municipal Bonds to the TOB Trust. The Funds may invest in both TOB Floaters and TOB","page_number":133,"box":{"x":116,"y":816,"width":745,"height":12}},{"id":"d847d7fa-eb9e-45eb-94ce-68ce83c34294","block_type":"box","text":"Residuals. TOB Floaters may have first priority on the cash flow from the Municipal Bonds held by the","page_number":133,"box":{"x":117,"y":831,"width":759,"height":12}},{"id":"b8a232bc-ca16-4c2f-8579-e4cf6b296dae","block_type":"box","text":"TOB Trust and are enhanced with a liquidity support arrangement from a third-party Liquidity Provider","page_number":133,"box":{"x":116,"y":847,"width":760,"height":12}},{"id":"63e83a40-e6c6-40e8-b06f-b5bb4f729221","block_type":"box","text":"(defined below) which allows holders to tender their position at par (plus accrued interest). A Fund, as","page_number":133,"box":{"x":117,"y":862,"width":758,"height":12}},{"id":"60c79f51-9946-48ff-86bc-15ddcc93e052","block_type":"box","text":"a holder of TOB Residuals, is paid the residual cash flow from the TOB Trust. A Fund that contributes","page_number":133,"box":{"x":116,"y":878,"width":759,"height":12}},{"id":"1f988f8f-b5e4-4b38-8a82-aba2d06102a0","block_type":"box","text":"II-74","page_number":133,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"e336ef2e-e7e9-4c7e-98fd-77971a9c2cf3","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":133,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4ef627b3-6e7b-46ba-925e-d327c96bcc4b","block_type":"box","text":"the Municipal Bonds to the TOB Trust is paid the cash received by the TOB Trust from the sale of the","page_number":134,"box":{"x":116,"y":87,"width":757,"height":12}},{"id":"f5652093-f654-4029-89d3-78f9b7556f31","block_type":"box","text":"TOB Floaters, less certain transaction costs, and typically will invest the cash to purchase additional","page_number":134,"box":{"x":116,"y":102,"width":746,"height":13}},{"id":"67f78cc1-ce02-419b-bd36-a49c32499e04","block_type":"box","text":"Municipal Bonds or other investments permitted by its investment policies. If a Fund ever purchases all","page_number":134,"box":{"x":117,"y":118,"width":767,"height":12}},{"id":"c0a4c3cb-cd2d-4b4e-bbdd-b18c2caede41","block_type":"box","text":"or a portion of the TOB Floaters sold by the TOB Trust, it may surrender those TOB Floaters together","page_number":134,"box":{"x":116,"y":134,"width":758,"height":12}},{"id":"71206e28-664b-4f65-a81c-d26ba2629272","block_type":"box","text":"with a proportionate amount of TOB Residuals to the TOB Trust in exchange for a proportionate","page_number":134,"box":{"x":116,"y":149,"width":717,"height":12}},{"id":"9bee46d9-6742-433d-a8ec-43f67df377e1","block_type":"box","text":"amount of the Municipal Bonds owned by the TOB Trust.","page_number":134,"box":{"x":116,"y":165,"width":427,"height":12}},{"id":"97132e6c-da9f-485a-921b-8f7686f653c4","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has","page_number":134,"box":{"x":116,"y":196,"width":767,"height":12}},{"id":"e181141d-d9a9-4a7e-b645-87727b797400","block_type":"box","text":"contributed Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust,","page_number":134,"box":{"x":116,"y":211,"width":752,"height":12}},{"id":"24f7cbdc-0270-438a-944b-7622f49323f4","block_type":"box","text":"the economic rights and obligations under the TOB Residual will generally be shared among the funds","page_number":134,"box":{"x":116,"y":227,"width":764,"height":12}},{"id":"7d6181ab-5966-4734-a043-645984743e1d","block_type":"box","text":"ratably in proportion to their participation in the TOB Trust.","page_number":134,"box":{"x":117,"y":242,"width":437,"height":12}},{"id":"2cd43720-4b11-4345-a57a-1d06a2aa2447","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typi","page_number":134,"box":{"x":116,"y":273,"width":380,"height":12}},{"id":"938ced7c-9804-4341-b5e4-89b0d44da5fb","block_type":"box","text":"cally are high grade Municipal Bonds. In certain","page_number":134,"box":{"x":497,"y":273,"width":350,"height":12}},{"id":"96b4eb92-9c4c-4faa-9bcd-b6074b8747a9","block_type":"box","text":"cases, when Municipal Bonds transferred are lowe","page_number":134,"box":{"x":116,"y":289,"width":367,"height":12}},{"id":"0a78e707-b638-407c-b166-47f2a7c73291","block_type":"box","text":"r grade Municipal Bonds, the TOB Trust transaction","page_number":134,"box":{"x":485,"y":289,"width":379,"height":12}},{"id":"2b6caf80-9074-41a4-aa25-81da90789fc8","block_type":"box","text":"includes a credit enhancement feature that provides fo","page_number":134,"box":{"x":117,"y":304,"width":395,"height":12}},{"id":"81e5575f-cf38-42ef-880c-7f7fb924f97c","block_type":"box","text":"r the timely payment of principal and interest on","page_number":134,"box":{"x":513,"y":304,"width":349,"height":12}},{"id":"15f8b12c-2acd-4399-aa12-08bba6997c8e","block_type":"box","text":"the bonds to the TOB Trust by a credit enhancement","page_number":134,"box":{"x":116,"y":320,"width":388,"height":12}},{"id":"1b9a86a5-004c-4668-ac0e-ae3b5718f780","block_type":"box","text":"provider. The TOB Trust would be responsible for","page_number":134,"box":{"x":505,"y":320,"width":364,"height":12}},{"id":"a19a89cb-e352-4755-984a-6d9cabd02f5b","block_type":"box","text":"the payment of the credit enhancem","page_number":134,"box":{"x":116,"y":335,"width":262,"height":12}},{"id":"172d1bd1-8498-4869-bbe3-1e209b067e23","block_type":"box","text":"ent fee and a Fund, as a TOB Residual holder, would be responsible","page_number":134,"box":{"x":379,"y":335,"width":504,"height":12}},{"id":"c6d5af8e-cde0-49ad-9572-f7ee4c76ccec","block_type":"box","text":"for reimbursement of any payments of principal","page_number":134,"box":{"x":116,"y":351,"width":348,"height":12}},{"id":"8b2f7fdd-946f-465e-8398-cc2b346a0c52","block_type":"box","text":"and interest made by the credit enhancement provider.","page_number":134,"box":{"x":464,"y":351,"width":403,"height":12}},{"id":"beaa1909-1f63-4ccc-8fce-a7e0ab09a4f7","block_type":"box","text":"The TOB Residuals held by a Fund generally provide t","page_number":134,"box":{"x":116,"y":382,"width":396,"height":12}},{"id":"b64ae934-9245-465d-b043-82f80566aea0","block_type":"box","text":"he Fund with the right to cause the holders of a","page_number":134,"box":{"x":513,"y":382,"width":346,"height":12}},{"id":"16acd9c9-0943-478f-b43b-ec289eb12827","block_type":"box","text":"proportional share of the TOB Floaters","page_number":134,"box":{"x":117,"y":397,"width":284,"height":12}},{"id":"22ad48dc-cc5c-4cde-8463-193195b943d1","block_type":"box","text":"to tender their notes to the TOB Trust at par plus accrued interest.","page_number":134,"box":{"x":401,"y":397,"width":485,"height":12}},{"id":"646e48cb-aa1e-46f5-8503-5281393c8eea","block_type":"box","text":"Thereafter, the Fund may withdraw a corresponding share","page_number":134,"box":{"x":116,"y":413,"width":428,"height":12}},{"id":"f39d0867-64e1-40b9-adc8-0e142266a9bd","block_type":"box","text":"of the Municipal Bonds from the TOB Trust.","page_number":134,"box":{"x":545,"y":413,"width":321,"height":12}},{"id":"3f433358-c1a3-4a2d-9279-67f48fea7dba","block_type":"box","text":"This transaction, in effect, creates exposure for the Fund","page_number":134,"box":{"x":116,"y":428,"width":416,"height":12}},{"id":"b1cfa013-53f6-46bc-aade-1f6319344a67","block_type":"box","text":"to the entire return of the Municipal Bonds in the","page_number":134,"box":{"x":532,"y":428,"width":355,"height":12}},{"id":"cbfb5cd6-863f-4dee-a796-a9e36282a6a5","block_type":"box","text":"TOB Trust, with a net cash investment by the Fund that","page_number":134,"box":{"x":116,"y":444,"width":403,"height":12}},{"id":"5649ee30-db2c-4159-8dce-176877f521c9","block_type":"box","text":"t is less than the value of the Municipal Bonds in","page_number":134,"box":{"x":519,"y":444,"width":351,"height":12}},{"id":"7fb78d8e-6524-4a98-b8b9-8627ee5f689b","block_type":"box","text":"the TOB Trust. This multiplies the positive or negative","page_number":134,"box":{"x":116,"y":459,"width":395,"height":12}},{"id":"de5a9b9c-7a3e-4f47-850c-081908ebc8a4","block_type":"box","text":"impact of the Municipal Bonds’ return within the","page_number":134,"box":{"x":512,"y":459,"width":348,"height":12}},{"id":"8dfe3214-bea3-41bb-a39f-2544fb01411d","block_type":"box","text":"Fund (thereby creating leverage). The leverage within a","page_number":134,"box":{"x":117,"y":475,"width":408,"height":12}},{"id":"80122a87-97ab-409f-9e60-e3dd419a868f","block_type":"box","text":"TOB Trust depends on the value of the Municipal","page_number":134,"box":{"x":525,"y":475,"width":362,"height":12}},{"id":"65357e17-bde4-4abd-8632-2917fce03805","block_type":"box","text":"Bonds deposited in the TOB Trust relative to","page_number":134,"box":{"x":117,"y":490,"width":327,"height":12}},{"id":"42d5b8d3-6029-4353-bab2-4a7bf4531358","block_type":"box","text":"the value of the TOB Floaters it issues.","page_number":134,"box":{"x":444,"y":490,"width":288,"height":10}},{"id":"67748b53-a41a-48e8-bf86-6ed4bf14ba7e","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly","page_number":134,"box":{"x":116,"y":521,"width":762,"height":12}},{"id":"fe9f04fb-bfd2-4702-b1a4-51a934ad5976","block_type":"box","text":"leveraged if the principal amount of the TOB Floaters issued by the related TOB Trust exceeds 75% of","page_number":134,"box":{"x":117,"y":537,"width":765,"height":12}},{"id":"f1a87cfb-f0e7-4209-8e03-9f64d8682ceb","block_type":"box","text":"the principal amount of the Municipal Bonds owned by the TOB Trust.","page_number":134,"box":{"x":116,"y":552,"width":523,"height":12}},{"id":"70658c52-9f82-4a0f-945f-c7901b6c92c4","block_type":"box","text":"The TOB Trust may be collapsed without the consent of a Fund upon the occurrence of tender option","page_number":134,"box":{"x":116,"y":583,"width":757,"height":12}},{"id":"a865cbf3-eaaf-4aa6-ab69-e821828efa17","block_type":"box","text":"termination events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust","page_number":134,"box":{"x":116,"y":599,"width":768,"height":12}},{"id":"20ffa048-3406-47c4-91be-f1d9ae8181c0","block_type":"box","text":"agreements. TOTEs include the bankruptcy or default of the issuer of the Municipal Bonds held in the","page_number":134,"box":{"x":116,"y":614,"width":758,"height":12}},{"id":"ce688f52-94c9-4134-9408-44fa848d032d","block_type":"box","text":"TOB Trust, a substantial downgrade in the credit quality of the issuer of the Municipal Bonds held in","page_number":134,"box":{"x":116,"y":630,"width":744,"height":12}},{"id":"d585611e-4955-4275-bf26-2c01511b9e57","block_type":"box","text":"the TOB Trust, failure of any scheduled payment of principal or interest on the Municipal Bonds, and a","page_number":134,"box":{"x":116,"y":645,"width":763,"height":12}},{"id":"479f0e7e-b134-48fd-86c3-e92eb342bf7b","block_type":"box","text":"judgment or ruling that interest on the Municipal Bonds is subject to U.S. federal income taxation.","page_number":134,"box":{"x":115,"y":661,"width":721,"height":12}},{"id":"e1229d7b-5568-4854-85ee-d79402cb6abf","block_type":"box","text":"MTEs may include, among other things, a failed remarketing of the TOB Floaters, the inability of the","page_number":134,"box":{"x":117,"y":676,"width":739,"height":12}},{"id":"2adb2e01-d959-48cb-8d27-cd5bc90a6ae6","block_type":"box","text":"TOB Trust to obtain renewal of the liquidity support agreement, and a substantial decline in the market","page_number":134,"box":{"x":116,"y":692,"width":760,"height":12}},{"id":"83c37ebd-8d42-4092-a118-82e60c70d98a","block_type":"box","text":"value of the Municipal Bonds held in the TOB Trust. Upon the occurrence of a TOTE or an MTE, a","page_number":134,"box":{"x":116,"y":707,"width":729,"height":12}},{"id":"bba86ab2-4e09-419f-a411-d4ed693b40b4","block_type":"box","text":"TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee","page_number":134,"box":{"x":116,"y":723,"width":752,"height":12}},{"id":"6c0341c5-eae9-4e9c-ad3f-fc7088d03722","block_type":"box","text":"of the TOB Trust, the remarketing agent of the TOB Floaters and the Liquidity Provider (defined","page_number":134,"box":{"x":116,"y":738,"width":708,"height":12}},{"id":"99d5c451-6922-46e5-91f0-67562d7dfb77","block_type":"box","text":"below). In the case of an MTE, after the payment of fees, the holders of the TOB Floaters would be","page_number":134,"box":{"x":117,"y":754,"width":734,"height":12}},{"id":"ed652d42-7b7c-45d6-8fe8-c04d7872261c","block_type":"box","text":"paid senior to the TOB Residual holders (","page_number":134,"box":{"x":117,"y":769,"width":307,"height":12}},{"id":"39274e86-c1da-462c-9a1a-d4acbb5cb1eb","block_type":"box","text":"i.e.","page_number":134,"box":{"x":425,"y":769,"width":20,"height":10}},{"id":"1beea8fd-6d04-4829-a79b-5e9e675b0cd7","block_type":"box","text":", the Fund). In contrast, in the case of a TOTE, after","page_number":134,"box":{"x":448,"y":769,"width":385,"height":12}},{"id":"314aefcb-eb24-452b-a9ee-0b38ce4526aa","block_type":"box","text":"payment of fees, the holders of TOB Floaters and the TOB Residual holders would be paid pro rata in","page_number":134,"box":{"x":117,"y":785,"width":753,"height":12}},{"id":"b337086c-42ad-4efe-b44a-39e48b2763fb","block_type":"box","text":"proportion to the respective face values of their certificates.","page_number":134,"box":{"x":117,"y":800,"width":437,"height":12}},{"id":"ca0519b1-fa18-4432-a93e-3b95fbeb4318","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically","page_number":134,"box":{"x":116,"y":831,"width":769,"height":12}},{"id":"f3306bba-8bb5-42f8-a69e-f04584a31dc2","block_type":"box","text":"supported by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity","page_number":134,"box":{"x":116,"y":847,"width":766,"height":12}},{"id":"4fe63599-ec3c-4d1a-b309-4cb9c519c451","block_type":"box","text":"Provider”) that allows the holders of the TOB Floaters to tender their TOB Floaters in exchange for","page_number":134,"box":{"x":117,"y":862,"width":734,"height":12}},{"id":"1f57cb3d-625b-425c-8bc4-0da6a28de0c3","block_type":"box","text":"payment of par plus accrued interest on any business day (subject to the non-occurrence of a TOTE","page_number":134,"box":{"x":117,"y":878,"width":748,"height":12}},{"id":"7afb7de5-8f0d-45de-b6b7-7bcf454c9cea","block_type":"box","text":"II-75","page_number":134,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"d6983895-3633-4508-885c-76a1ef66eb8a","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":134,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"30492d51-988e-48ff-a2d9-14241c9899c2","block_type":"box","text":"described above). Depending on the structure of the TOB Trust, the Liquidity Provider may purchase","page_number":135,"box":{"x":116,"y":87,"width":752,"height":12}},{"id":"16731bad-62d2-4a9e-8985-41abde794454","block_type":"box","text":"the tendered TOB Floaters, or the TOB Trust may draw upon a loan from the Liquidity Provider to","page_number":135,"box":{"x":116,"y":102,"width":728,"height":13}},{"id":"40df99c2-8b6f-4a54-840a-51781f8ebea3","block_type":"box","text":"purchase the tendered TOB Floaters.","page_number":135,"box":{"x":117,"y":118,"width":281,"height":12}},{"id":"0316f346-01c3-4900-9d33-893b47e17b44","block_type":"box","text":"When a Fund invests in TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to","page_number":135,"box":{"x":116,"y":149,"width":758,"height":12}},{"id":"1576346d-cdd9-4f91-bf9f-a7fa56eddc0c","block_type":"box","text":"make a payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion","page_number":135,"box":{"x":117,"y":165,"width":753,"height":12}},{"id":"61130c5a-28fe-44c4-850d-6d71e63a88a6","block_type":"box","text":"of the Municipal Bonds held in the TOB Trust and then fund the balance, if any, of the amount owed","page_number":135,"box":{"x":116,"y":180,"width":746,"height":12}},{"id":"a7dc7fec-13b6-42b3-8ec3-63d038d784f9","block_type":"box","text":"under the liquidity facility over the liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in","page_number":135,"box":{"x":117,"y":196,"width":760,"height":12}},{"id":"89088750-7904-4daa-83b8-87ba92042231","block_type":"box","text":"a TOB Trust on a recourse basis, it will typically enter into a reimbursement agreement with the","page_number":135,"box":{"x":116,"y":211,"width":712,"height":12}},{"id":"ef575d1e-6912-4861-b69e-bfddd6b9829b","block_type":"box","text":"Liquidity Provider pursuant to which the Fund is required to reimburse the Liquidity Provider the","page_number":135,"box":{"x":117,"y":227,"width":712,"height":12}},{"id":"03a1e989-f59d-4671-97c7-90a8fa037fd3","block_type":"box","text":"amount of any Liquidation Shortfall. As a result, if the Fund invests in a recourse TOB Trust, the Fund","page_number":135,"box":{"x":116,"y":242,"width":759,"height":12}},{"id":"bbe985e9-c5fe-4682-bac4-1560b4f5ab5a","block_type":"box","text":"will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised funds","page_number":135,"box":{"x":116,"y":258,"width":751,"height":12}},{"id":"cd182810-76e0-4ef6-85a2-5ac78e8ade5d","block_type":"box","text":"participate in any such TOB Trust, these losses will be shared ratably, in proportion to their","page_number":135,"box":{"x":117,"y":273,"width":678,"height":12}},{"id":"c9b14c62-2cd7-4164-bf41-7ddfa96b02d7","block_type":"box","text":"participation in the TOB Trust.","page_number":135,"box":{"x":117,"y":289,"width":227,"height":12}},{"id":"d4072abe-3e62-485b-a4ad-c9e6f58cb8e0","block_type":"box","text":"Under accounting rules, Municipal Bonds of a Fund that are deposited into a TOB Trust are","page_number":135,"box":{"x":117,"y":320,"width":682,"height":12}},{"id":"364b9faa-dee3-4fba-9aba-ca45965e094c","block_type":"box","text":"investments of the Fund and are presented on the Fund’s Schedule of Investments and outstanding","page_number":135,"box":{"x":117,"y":335,"width":745,"height":12}},{"id":"3397b0aa-c0b3-401e-8cf7-d523718149cc","block_type":"box","text":"TOB Floaters issued by a TOB Trust are presented as liabilities in the Fund’s Statement of Assets and","page_number":135,"box":{"x":116,"y":351,"width":765,"height":12}},{"id":"fe6654a7-6f1e-40d4-b74c-2e11e8d659d5","block_type":"box","text":"Liabilities. Interest income from the underlying Municipal Bonds is recorded by a Fund on an accrual","page_number":135,"box":{"x":117,"y":366,"width":747,"height":12}},{"id":"6bb64fd7-8aa9-46fb-a411-5559cf3b6c7c","block_type":"box","text":"basis. Interest expense incurred on the","page_number":135,"box":{"x":117,"y":382,"width":288,"height":12}},{"id":"291c296a-9037-4a8f-9add-4dfaca7f3a3c","block_type":"box","text":"TOB Floaters and other expenses related to remarketing,","page_number":135,"box":{"x":409,"y":382,"width":430,"height":12}},{"id":"09bb1fe1-685e-4e54-a73f-80984c4431e2","block_type":"box","text":"administration, trustee and other services to a TOB Trust are reported as expenses of a Fund. In","page_number":135,"box":{"x":116,"y":397,"width":722,"height":12}},{"id":"27a1f97d-c70a-46f5-8d12-712b17010de6","block_type":"box","text":"addition, under accounting rules, loans made to a TOB Trust sponsored by a Fund may be presented","page_number":135,"box":{"x":116,"y":413,"width":757,"height":12}},{"id":"cd14eeef-c2aa-4e0d-9996-3d5fc6aa5e03","block_type":"box","text":"as loans of the Fund in the Fund’s financial statements even if there is no recourse to the Fund’s","page_number":135,"box":{"x":116,"y":428,"width":721,"height":10}},{"id":"e8afa88f-8ee4-47cd-b065-a1756a2652d7","block_type":"box","text":"assets.","page_number":135,"box":{"x":116,"y":444,"width":58,"height":9}},{"id":"0b510c33-f765-4d73-bb88-d1d35db0e9d9","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal","page_number":135,"box":{"x":117,"y":475,"width":765,"height":12}},{"id":"aa257c75-98a1-49ea-a1bc-ecdef6834a15","block_type":"box","text":"Bonds with maturities or remarketing provisions that are comparable in duration to the periodic interval","page_number":135,"box":{"x":117,"y":490,"width":764,"height":12}},{"id":"c8a6cf50-9fa9-40e8-81bd-e9cb10f6c4c7","block_type":"box","text":"of the tender option. Since the tender option feature has a shorter term than the final maturity or first","page_number":135,"box":{"x":116,"y":506,"width":748,"height":12}},{"id":"601480ff-1da5-4f03-a265-82d9640a973c","block_type":"box","text":"call date of the underlying Municipal Bonds deposited in the TOB Trust, the holder of the TOB Floaters","page_number":135,"box":{"x":116,"y":521,"width":766,"height":12}},{"id":"b61b4e44-bc5b-4701-b49b-f5305aea8d5a","block_type":"box","text":"relies upon the terms of the agreement with the financial institution furnishing the liquidity facility as","page_number":135,"box":{"x":117,"y":537,"width":738,"height":12}},{"id":"c45087e3-6865-4080-b2f6-655aa424fac9","block_type":"box","text":"well as the credit strength of that institution. The risk associated with TOB Floaters, however, may be","page_number":135,"box":{"x":116,"y":552,"width":754,"height":12}},{"id":"89e8616d-ca10-461a-8a85-aba7fe7402e2","block_type":"box","text":"increased in the current market environment as a result of recent downgrades to the credit ratings, and","page_number":135,"box":{"x":117,"y":568,"width":767,"height":12}},{"id":"780d0580-97e3-4ab0-b057-3ccc9c2b652b","block_type":"box","text":"thus the perceived reliability and creditworthiness, of many major financial institutions, some of which","page_number":135,"box":{"x":116,"y":583,"width":755,"height":12}},{"id":"f4120188-eb85-437d-b974-3bbed724c286","block_type":"box","text":"sponsor and/or provide liquidity support to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":135,"box":{"x":116,"y":599,"width":763,"height":12}},{"id":"4b1b4893-6864-4d9b-85d8-939f952de08b","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":135,"box":{"x":117,"y":614,"width":633,"height":12}},{"id":"5d65ddcc-fa9d-4876-ad0d-1c51d4960fe8","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions,","page_number":135,"box":{"x":117,"y":645,"width":727,"height":12}},{"id":"c3d4e871-5692-4b9a-a6c0-ae85018cfe88","block_type":"box","text":"reverse repurchase agreements and similar financing transactions (e.g., borrowed bonds)","page_number":135,"box":{"x":117,"y":661,"width":650,"height":12}},{"id":"7334614d-5a85-485b-a2ad-44a9d12c42bb","block_type":"box","text":"notwithstanding the limitation","page_number":135,"box":{"x":117,"y":676,"width":209,"height":12}},{"id":"40986ea1-4a0c-4ff3-8b19-c32089023eb5","block_type":"box","text":"on the issuance of senior securities in Section 18 of the Investment","page_number":135,"box":{"x":332,"y":676,"width":487,"height":10}},{"id":"c871d3f7-06f6-4f7c-86a4-f6987e7e238c","block_type":"box","text":"Company Act, provided that the Fund either (i) comp","page_number":135,"box":{"x":117,"y":692,"width":381,"height":12}},{"id":"c85a9dda-79c9-404e-bad0-45c08813c20b","block_type":"box","text":"lies with the 300% asset coverage ratio with respect","page_number":135,"box":{"x":499,"y":692,"width":377,"height":12}},{"id":"6658d7d1-831b-49fe-977c-96e3461e93f7","block_type":"box","text":"to such transactions and any other borrowings in t","page_number":135,"box":{"x":116,"y":707,"width":363,"height":12}},{"id":"dc288d18-496e-43dc-8b43-cc7d23ed544c","block_type":"box","text":"he aggregate, or (ii) treats such transactions as","page_number":135,"box":{"x":480,"y":707,"width":342,"height":12}},{"id":"1a4d81e5-a4ce-4947-92e4-a331d501fd7b","block_type":"box","text":"Derivatives Transactions under Rule 18f-4. See “—","page_number":135,"box":{"x":117,"y":723,"width":372,"height":9}},{"id":"eed7f115-2d19-4824-a59e-659a9b3db3da","block_type":"box","text":"Derivatives—Regulation of Derivatives—Rule 18f-4","page_number":135,"box":{"x":489,"y":723,"width":372,"height":12}},{"id":"dadf9919-515e-4162-be51-5843219ce29e","block_type":"box","text":"under the Investment Company Act” above.","page_number":135,"box":{"x":117,"y":738,"width":316,"height":12}},{"id":"cb2ba9b7-28a2-477a-af3b-2da1e692d307","block_type":"box","text":"Developments in the TOB Trust Market","page_number":135,"box":{"x":116,"y":769,"width":292,"height":12}},{"id":"36930a41-fa81-45ab-9f0c-34d9c78edea1","block_type":"box","text":". In response to the restrictions imposed by section 619 of the","page_number":135,"box":{"x":409,"y":769,"width":457,"height":12}},{"id":"98f00295-8230-4a1b-997b-83bf3e332958","block_type":"box","text":"Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Volcker Rule”), market participants","page_number":135,"box":{"x":117,"y":785,"width":761,"height":12}},{"id":"470f38fe-f7d7-4703-9724-022faefba355","block_type":"box","text":"have developed a structure for TOB Trusts designed to ensure that no banking entity is sponsoring the","page_number":135,"box":{"x":117,"y":800,"width":761,"height":12}},{"id":"0aadb706-e284-43cd-a2b4-290ff1cff40e","block_type":"box","text":"TOB Trust for purposes of the Volcker Rule. Specifically, a Fund will establish, structure and “sponsor”","page_number":135,"box":{"x":116,"y":816,"width":760,"height":12}},{"id":"f2d78df7-9f90-4655-8e6a-4d8ffc692b94","block_type":"box","text":"the TOB Trusts in which it holds TOB Residuals. In such a structure, certain responsibilities that","page_number":135,"box":{"x":116,"y":831,"width":715,"height":12}},{"id":"247ae91a-9914-4192-8431-47dfdd236352","block_type":"box","text":"previously belonged to the sponsor bank will be performed by, or on behalf of, a Fund. A Fund may","page_number":135,"box":{"x":117,"y":847,"width":740,"height":12}},{"id":"6357ae3f-b581-4c7b-944c-f0fa81396b7e","block_type":"box","text":"utilize service providers in meeting these responsibilities. It is possible that regulators could take","page_number":135,"box":{"x":117,"y":862,"width":717,"height":12}},{"id":"3573b1d3-9cd2-4cf3-a2ee-1fcbc2ef29ca","block_type":"box","text":"positions that could limit the market for such structured TOB Trust transactions or a Fund’s ability to","page_number":135,"box":{"x":117,"y":878,"width":744,"height":12}},{"id":"6be9f3af-4150-4c5d-ae67-9c4202737f40","block_type":"box","text":"II-76","page_number":135,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"e12ac8f4-1af9-4096-b0c6-861cb4075191","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":135,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"45ce0c25-122f-433e-b40a-653a332a4163","block_type":"box","text":"hold TOB Residuals. Under this TOB Trust structure, a Fund has certain additional duties and","page_number":136,"box":{"x":117,"y":87,"width":699,"height":11}},{"id":"5d96665d-5a3c-41a7-ab35-d5e9739c6eb4","block_type":"box","text":"responsibilities, which may give rise to certain additional risks including","page_number":136,"box":{"x":117,"y":103,"width":525,"height":12}},{"id":"1d8e89bf-40ce-440e-a8de-98f8d426cc69","block_type":"box","text":",","page_number":136,"box":{"x":643,"y":111,"width":3,"height":3}},{"id":"9e001bf1-960c-456f-a560-50f507c4e195","block_type":"box","text":"but not limited to, compliance,","page_number":136,"box":{"x":648,"y":103,"width":232,"height":11}},{"id":"38934eec-9b28-4477-a0f1-6becc5eb76d2","block_type":"box","text":"securities law and operational risks.","page_number":136,"box":{"x":116,"y":118,"width":270,"height":12}},{"id":"c648d3ab-6156-4bd8-a6db-d8601aab9d29","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers,","page_number":136,"box":{"x":117,"y":149,"width":724,"height":12}},{"id":"103f3cb1-6c9f-4657-ab4e-025af53b7859","block_type":"box","text":"trustees, and remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual","page_number":136,"box":{"x":116,"y":165,"width":764,"height":12}},{"id":"5a9be81d-8490-4221-a6db-d35e9a6dbb00","block_type":"box","text":"holder. Similar to the traditional tender option bond structure, a Fund deposits Municipal Bonds into the","page_number":136,"box":{"x":117,"y":180,"width":768,"height":12}},{"id":"df84a9bc-78a9-4b9c-b497-8a93befde266","block_type":"box","text":"TOB Trust in exchange for TOB Residuals, the TOB Trust then issues and sells TOB Floaters to third","page_number":136,"box":{"x":116,"y":196,"width":757,"height":12}},{"id":"5f720361-72cf-4979-a0c6-98e7a760b6d0","block_type":"box","text":"party investors, and the proceeds of the sale of the TOB Floaters is distributed to such TOB Residual","page_number":136,"box":{"x":117,"y":211,"width":754,"height":12}},{"id":"4dde08a4-f6db-4d4c-a3f6-26a47170fb3a","block_type":"box","text":"holders (","page_number":136,"box":{"x":117,"y":227,"width":64,"height":12}},{"id":"929c84e2-9665-471f-bb4f-31ec0693e652","block_type":"box","text":"i.e.","page_number":136,"box":{"x":182,"y":227,"width":20,"height":9}},{"id":"cc88dfdd-568a-41cf-b675-34ee3ad1b450","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be supported by a remarketing agent and","page_number":136,"box":{"x":205,"y":227,"width":671,"height":12}},{"id":"6eea6172-6291-44cc-8562-3beceaa414a9","block_type":"box","text":"a liquidity facility. However, the remarketing agent does not purchase tendered TOB Floaters for its","page_number":136,"box":{"x":116,"y":242,"width":740,"height":12}},{"id":"4ba55634-dadd-46cb-981d-fc2a79221676","block_type":"box","text":"own account in the event of a failed remarketing, which may increase the likelihood that a TOB Trust","page_number":136,"box":{"x":116,"y":258,"width":751,"height":12}},{"id":"575082ba-611c-4e2a-afa1-4830e9595ac1","block_type":"box","text":"will need to be collapsed and liquidated in order to purchase the tendered TOB Floaters. In the event of","page_number":136,"box":{"x":116,"y":273,"width":772,"height":12}},{"id":"34d44482-fd7e-4dbe-b130-8ea7975f17bb","block_type":"box","text":"a failed remarketing of TOB Floaters, the Liquidity Provider, at its option, may advance a loan to the","page_number":136,"box":{"x":116,"y":289,"width":745,"height":12}},{"id":"64295f2f-9f07-4f4a-908f-5df669ff14f5","block_type":"box","text":"TOB Trust the proceeds of which would be used by the TOB Trust to purchase the tendered TOB","page_number":136,"box":{"x":116,"y":304,"width":728,"height":12}},{"id":"e8b3d20a-b515-4ffd-96d5-9e00e310d336","block_type":"box","text":"Floaters. The Liquidity Provider is not obligated to advance such a loan. The TOB Trust would be the","page_number":136,"box":{"x":117,"y":320,"width":753,"height":12}},{"id":"ef86193e-a20a-4e25-9989-9e7f492a8c8d","block_type":"box","text":"borrower with respect to any such loan. Any loans made by a Liquidity Provider will be secured by the","page_number":136,"box":{"x":117,"y":335,"width":758,"height":12}},{"id":"aacbcb57-316e-4351-b324-4350e6c5d5f9","block_type":"box","text":"purchased TOB Floaters held by the TOB Trust.","page_number":136,"box":{"x":117,"y":351,"width":361,"height":12}},{"id":"bab42e73-d597-4bdf-8cf4-f86160ca0a37","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals","page_number":136,"box":{"x":116,"y":382,"width":769,"height":12}},{"id":"e3552e48-8339-4190-a250-f75ae5f4ad43","block_type":"box","text":"or recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would","page_number":136,"box":{"x":116,"y":397,"width":735,"height":12}},{"id":"124fd21b-dfc5-4e60-a707-6e4c5abba3a9","block_type":"box","text":"generally be no contractual recourse to the Fund’s assets if the Fund holds a non-recourse TOB","page_number":136,"box":{"x":116,"y":413,"width":718,"height":12}},{"id":"084b05c4-1f2a-4624-bdb2-e45454905302","block_type":"box","text":"Residual. However, as described above, a Fund would bear the risk of loss with respect to any","page_number":136,"box":{"x":117,"y":428,"width":706,"height":12}},{"id":"d044970b-2a55-4dc4-970a-4d6ec4ee437f","block_type":"box","text":"Liquidation Shortfall if it holds a recourse TOB Residual.","page_number":136,"box":{"x":117,"y":444,"width":421,"height":12}},{"id":"ee2b68e1-687e-4a70-90f0-38c800f827ae","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for","page_number":136,"box":{"x":116,"y":475,"width":730,"height":12}},{"id":"a8959184-c48f-4877-9f64-b751bb784575","block_type":"box","text":"securitizations (the “Risk Retention Rules”), which took effect in December 2016. The Risk Retention","page_number":136,"box":{"x":116,"y":490,"width":753,"height":12}},{"id":"5407bf06-a902-47b4-9c35-5a342a9d46b1","block_type":"box","text":"Rules require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets","page_number":136,"box":{"x":117,"y":506,"width":771,"height":12}},{"id":"1fb44053-0f79-4333-93f8-ec8af3de01b6","block_type":"box","text":"supporting the TOB Trust’s Municipal Bonds. The Risk Retention Rules may adversely affect the","page_number":136,"box":{"x":116,"y":521,"width":721,"height":12}},{"id":"2360232f-b9a3-4e12-98ce-763d215f234f","block_type":"box","text":"Fund’s ability to engage in TOB Trust transactions or increase the costs of such transactions in certain","page_number":136,"box":{"x":117,"y":537,"width":764,"height":12}},{"id":"c8a48da5-fdff-4ff1-8f15-072f399d9be3","block_type":"box","text":"circumstances.","page_number":136,"box":{"x":116,"y":552,"width":117,"height":10}},{"id":"7d2180c6-aa64-4a8b-96ec-67c0eae47c3b","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":136,"box":{"x":116,"y":583,"width":763,"height":12}},{"id":"06a48e05-5bc8-488d-80c4-db2d7f373284","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through","page_number":136,"box":{"x":117,"y":599,"width":729,"height":12}},{"id":"9eb1e0a3-3dca-4dba-8a1a-7b41c6fb634c","block_type":"box","text":"reduced demand for and liquidity of municipal bonds and increased financing costs for municipal","page_number":136,"box":{"x":117,"y":614,"width":719,"height":12}},{"id":"9c471f3c-19d1-45c1-84e9-85ef98d2cd46","block_type":"box","text":"issuers. Any such developments could adversely affect the Funds. The ultimate impact of these rules","page_number":136,"box":{"x":117,"y":630,"width":754,"height":12}},{"id":"e2584035-e156-4d35-a6dd-91abd5f803a2","block_type":"box","text":"on the TOB market and the overall municipal market is not yet certain.","page_number":136,"box":{"x":116,"y":645,"width":520,"height":12}},{"id":"fa74195a-1b3c-46f0-bcab-bb003b7c873b","block_type":"box","text":"Yields.","page_number":136,"box":{"x":118,"y":676,"width":47,"height":10}},{"id":"82642edb-8966-4065-9806-6cfa8c4b7153","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general","page_number":136,"box":{"x":171,"y":676,"width":639,"height":12}},{"id":"0d34d92c-f664-455f-b1b1-fd2aa7f9756c","block_type":"box","text":"condition of the money market and of the municipal bond market, the size of a particular offering, the","page_number":136,"box":{"x":116,"y":692,"width":746,"height":12}},{"id":"c42fefe8-2a88-4c73-8eb3-ee0d75e7bcc4","block_type":"box","text":"financial condition of the issuer, the maturity of the obligation and the rating of the issue. The ability of","page_number":136,"box":{"x":116,"y":707,"width":754,"height":12}},{"id":"6228ef70-8850-4b6e-aa4e-907d86d0bcf7","block_type":"box","text":"a Fund to achieve its investment objective is also dependent on the continuing ability of the issuers of","page_number":136,"box":{"x":116,"y":723,"width":753,"height":12}},{"id":"992ef46f-9da4-42c2-a5cc-ad35e1a05eb5","block_type":"box","text":"the securities in which the Fund invests to meet their obligations for the payment of interest and","page_number":136,"box":{"x":116,"y":738,"width":708,"height":12}},{"id":"d36f690b-78da-4cfd-b465-102acdb3607c","block_type":"box","text":"principal when due. There are variations in the risks involved in holding Municipal Bonds, both within a","page_number":136,"box":{"x":117,"y":754,"width":757,"height":12}},{"id":"bee2b553-794e-453d-824e-f460601f173c","block_type":"box","text":"particular classification and between classifications, depending on numerous factors. Furthermore, the","page_number":136,"box":{"x":117,"y":769,"width":758,"height":12}},{"id":"b714f31e-12c8-4ac7-a3e7-19037c073636","block_type":"box","text":"rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal Bonds may be","page_number":136,"box":{"x":117,"y":785,"width":753,"height":12}},{"id":"7a52d16d-a99a-4f4e-861d-a972fa0f742d","block_type":"box","text":"subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights of","page_number":136,"box":{"x":116,"y":800,"width":763,"height":12}},{"id":"60593454-ff8d-40c9-8286-0682811a9104","block_type":"box","text":"creditors generally and to general equitable principles, which may limit the enforcement of certain","page_number":136,"box":{"x":116,"y":816,"width":721,"height":12}},{"id":"3d3840dc-68d3-4689-8b40-14258c897454","block_type":"box","text":"remedies.","page_number":136,"box":{"x":117,"y":831,"width":77,"height":10}},{"id":"8fa92d71-b407-4874-9eb8-e4509bab5203","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":136,"box":{"x":118,"y":862,"width":344,"height":12}},{"id":"c273cd74-418e-47fe-98b3-99cf967f2bcf","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a","page_number":136,"box":{"x":464,"y":862,"width":374,"height":12}},{"id":"21169f42-0661-4723-a05f-8a41d417ed49","block_type":"box","text":"floating or variable interest rate adjustment formula and a right of demand on the part of the holder","page_number":136,"box":{"x":116,"y":878,"width":736,"height":12}},{"id":"5263af8b-53b0-44e4-ba0b-e14e5b2f9d0c","block_type":"box","text":"II-77","page_number":136,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"8becf7d1-b3f4-4c70-9b32-206efaf52dbf","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":136,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"518ed802-8e7a-4bdd-9735-5b02107c8ff5","block_type":"box","text":"thereof to receive payment of the unpaid principal balance plus accrued interest upon a short notice","page_number":137,"box":{"x":116,"y":87,"width":745,"height":12}},{"id":"240e6e26-a378-4a3b-9afa-ed5dd5298743","block_type":"box","text":"period not to exceed seven days.","page_number":137,"box":{"x":117,"y":103,"width":250,"height":12}},{"id":"6cbc6132-4854-4aff-b48c-c006980e8e29","block_type":"box","text":"There is the possibility that because of default or insolvency the demand feature of VRDOs may not be","page_number":137,"box":{"x":116,"y":134,"width":768,"height":12}},{"id":"2f3ec3e4-ab3a-497e-bc74-b01a5898ac6f","block_type":"box","text":"honored. The interest rates are adjustable at periodic intervals to some prevailing market rate for","page_number":137,"box":{"x":117,"y":149,"width":721,"height":12}},{"id":"4ca76d3e-6f32-405b-a80e-9b03158492e5","block_type":"box","text":"similar investments, such adjustment formula being calculated to maintain the market rate of the","page_number":137,"box":{"x":116,"y":165,"width":718,"height":12}},{"id":"319e4d8f-7665-4143-8dd4-c86b374f1d4e","block_type":"box","text":"VRDOs at approximately the par value of the VRDOs on the adjustment date. The adjustments","page_number":137,"box":{"x":116,"y":180,"width":710,"height":12}},{"id":"ffb1b0f6-a9ad-4c98-9831-aee52dd8162c","block_type":"box","text":"typically are based upon the Securities Industry and Financial Markets Association (“SIFMA”) Index.","page_number":137,"box":{"x":116,"y":196,"width":746,"height":12}},{"id":"9b9c9778-9319-4c78-bf87-89b13541d782","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate","page_number":137,"box":{"x":117,"y":227,"width":751,"height":12}},{"id":"e22a27c1-19ee-41c1-b3d2-d42ed9cd2e0c","block_type":"box","text":"securities. During periods of declining interest rates, a Fund’s yield on a VRDO will decrease and its","page_number":137,"box":{"x":116,"y":242,"width":746,"height":12}},{"id":"0e704de8-5ea5-4232-b81a-f4d239a962cb","block_type":"box","text":"shareholders will forego the opportunity for capital appreciation. During periods of rising interest rates,","page_number":137,"box":{"x":116,"y":258,"width":761,"height":12}},{"id":"4e422c3f-cd77-4401-9cb9-a3bc50429c38","block_type":"box","text":"however, a Fund’s yield on a VRDO will increase and the Fund’s shareholders will have a reduced risk","page_number":137,"box":{"x":117,"y":273,"width":764,"height":12}},{"id":"1346068c-a9f9-4d0b-ad48-879fbaf1a3a3","block_type":"box","text":"of capital depreciation.","page_number":137,"box":{"x":116,"y":289,"width":173,"height":12}},{"id":"a6b30707-1e48-40de-966e-ae01536dd9bc","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":137,"box":{"x":118,"y":320,"width":488,"height":12}},{"id":"82fd031d-f4cf-4501-b4e4-af8a1bb13f58","block_type":"box","text":"The Municipal Funds and certain","page_number":137,"box":{"x":608,"y":320,"width":253,"height":12}},{"id":"13de960d-34df-42d9-bbda-1b30680d1496","block_type":"box","text":"other funds deal in financial futures contracts based on a long-term municipal bond index developed by","page_number":137,"box":{"x":116,"y":335,"width":770,"height":12}},{"id":"c66212fb-ee22-41e8-8497-643ca049cc21","block_type":"box","text":"the Chicago Board of Trade (“CBT”) and The Bond Buyer (the “Municipal Bond Index”). The Municipal","page_number":137,"box":{"x":116,"y":351,"width":761,"height":12}},{"id":"784eeff2-4e70-4990-b57b-4da9afd0fb6b","block_type":"box","text":"Bond Index is comprised of 40 long-term, actively traded tax-exempt municipal revenue and general","page_number":137,"box":{"x":117,"y":366,"width":746,"height":12}},{"id":"ed85c4a3-38c7-4eae-8b06-11949490525e","block_type":"box","text":"obligation bonds. Each bond included in the Municipal Bond Index must be rated A or higher by","page_number":137,"box":{"x":116,"y":382,"width":712,"height":12}},{"id":"5732b0cb-11e5-4340-b90e-9d329462735f","block_type":"box","text":"Moody’s or S&P and must have a remaining maturity of 19 years or more. Twice a month new issues","page_number":137,"box":{"x":117,"y":397,"width":754,"height":12}},{"id":"aa8870ab-af21-4474-aa66-726a61bd1079","block_type":"box","text":"satisfying the eligibility requirements are added to, and an equal number of old issues are deleted from,","page_number":137,"box":{"x":116,"y":413,"width":771,"height":12}},{"id":"6c684081-e218-414f-9148-670410bc164c","block_type":"box","text":"the Municipal Bond Index. The value of the Municipal Bond Index is computed daily according to a","page_number":137,"box":{"x":116,"y":428,"width":734,"height":12}},{"id":"8ec5c15f-a28e-4f59-a2cf-46e873af36d6","block_type":"box","text":"formula based on the price of each bond in the Municipal Bond Index, as evaluated by six","page_number":137,"box":{"x":116,"y":444,"width":670,"height":12}},{"id":"9ad1ca46-2a85-4be9-ade1-ec97ce9ed754","block_type":"box","text":"dealer-to-dealer brokers.","page_number":137,"box":{"x":116,"y":459,"width":189,"height":10}},{"id":"2b3a321a-e055-4858-bf1d-ee27939e8dad","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the","page_number":137,"box":{"x":116,"y":490,"width":760,"height":12}},{"id":"600657e1-d425-414b-8123-29c5af32b653","block_type":"box","text":"CBT assures performance under futures contracts through a clearing corporation, a nonprofit","page_number":137,"box":{"x":117,"y":506,"width":694,"height":12}},{"id":"b725a310-7aa9-4387-af31-d7d86b6649f6","block_type":"box","text":"organization managed by the exchange membership that is also responsible for handling daily","page_number":137,"box":{"x":116,"y":521,"width":704,"height":12}},{"id":"e8e566d9-9274-4b3f-a786-a102f1a9820c","block_type":"box","text":"accounting of deposits or withdrawals of margin.","page_number":137,"box":{"x":116,"y":537,"width":364,"height":12}},{"id":"0fe3e012-86fc-4f3e-800e-dce174be62ff","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial","page_number":137,"box":{"x":116,"y":568,"width":735,"height":12}},{"id":"2771a718-ddd4-478e-a26c-2e022eb1cd29","block_type":"box","text":"futures contract may vary from the bonds held by a Municipal Fund. As a result, a Municipal Fund’s","page_number":137,"box":{"x":116,"y":583,"width":741,"height":12}},{"id":"74610bd2-6789-4cb7-a567-6bad164561d5","block_type":"box","text":"ability to hedge effectively all or a portion of the value of its Municipal Bonds through the use of such","page_number":137,"box":{"x":116,"y":599,"width":749,"height":12}},{"id":"50228b40-4272-4a37-806f-1703c5c765f8","block_type":"box","text":"financial futures contracts will depend in part on the degree to which price movements in the index","page_number":137,"box":{"x":116,"y":614,"width":734,"height":12}},{"id":"15cf703b-bb8e-469e-ae5d-2dac15004b6d","block_type":"box","text":"underlying the financial futures contract correlate with the price movements of the Municipal Bonds","page_number":137,"box":{"x":117,"y":630,"width":737,"height":12}},{"id":"5ffdf89c-0ae9-4c12-8c4c-700a126ab18e","block_type":"box","text":"held by the Fund. The correlation may be affected by disparities in the average maturity, ratings,","page_number":137,"box":{"x":117,"y":645,"width":718,"height":12}},{"id":"3ca125e9-7780-49ab-8ff4-79cade8962b2","block_type":"box","text":"geographical mix or structure of a Municipal Fund’s investments as compared to those comprising the","page_number":137,"box":{"x":116,"y":661,"width":755,"height":12}},{"id":"0f73170d-c86e-4e77-a8a4-ce9638f92a61","block_type":"box","text":"Municipal Bond Index and general economic or political factors. In addition, the correlation between","page_number":137,"box":{"x":117,"y":676,"width":736,"height":12}},{"id":"148c8a72-7442-47fa-a020-2f6ce38fd177","block_type":"box","text":"movements in the value of the Municipal Bond Index may be subject to change over time as additions","page_number":137,"box":{"x":117,"y":692,"width":753,"height":12}},{"id":"d29d3627-e00b-435f-9e8e-ff1d19a70e41","block_type":"box","text":"to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":137,"box":{"x":116,"y":707,"width":725,"height":12}},{"id":"22693891-2557-4b6c-9f7c-503b3d7d586e","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be","page_number":137,"box":{"x":116,"y":723,"width":745,"height":12}},{"id":"1eec99c3-c000-4336-b09a-e6862ca4c103","block_type":"box","text":"adversely affected by similar factors and the risk of imperfect correlation between movements in the","page_number":137,"box":{"x":116,"y":738,"width":740,"height":12}},{"id":"4a9e0e04-00e4-4e70-919b-b3af1c6cf46a","block_type":"box","text":"prices of such futures contracts and the prices of Municipal Bonds held by a Municipal Fund may be","page_number":137,"box":{"x":117,"y":754,"width":740,"height":12}},{"id":"f475d20f-034a-4de3-beeb-114f43d89be7","block_type":"box","text":"greater. Municipal Bond Index futures contracts were approved for trading in 1985. Trading in such","page_number":137,"box":{"x":116,"y":769,"width":732,"height":12}},{"id":"e09e0f02-6f95-402c-a766-1bb8953af7c7","block_type":"box","text":"futures contracts may tend to be less liquid than trading in other futures contracts. The trading of","page_number":137,"box":{"x":116,"y":785,"width":716,"height":12}},{"id":"95c14d39-3bc9-4ccf-a21e-e2c266fe5b67","block_type":"box","text":"futures contracts also is subject to certain market risks, such as inadequate trading activity, which","page_number":137,"box":{"x":116,"y":800,"width":723,"height":12}},{"id":"6fcc063d-c4e3-45e5-a2d0-c1b2cda95464","block_type":"box","text":"could at times make it difficult or impossible to liquidate existing positions.","page_number":137,"box":{"x":116,"y":816,"width":545,"height":12}},{"id":"a424607c-d882-4910-8853-fa5502aba549","block_type":"box","text":"Call Rights.","page_number":137,"box":{"x":117,"y":847,"width":83,"height":12}},{"id":"6ebd29fc-dbc6-4a7b-b4d2-8b71e8924c0c","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a portion of such","page_number":137,"box":{"x":202,"y":847,"width":626,"height":12}},{"id":"d15c74e2-1250-4b52-a386-6c72e9a6cb97","block_type":"box","text":"Municipal Bond for mandatory tender for purchase (a “Call Right”). A holder of a Call Right may","page_number":137,"box":{"x":117,"y":862,"width":711,"height":12}},{"id":"1dc71793-adc5-4972-9fd7-eb4fd147dc0f","block_type":"box","text":"exercise such right to require a mandatory tender for the purchase of related Municipal Bonds, subject","page_number":137,"box":{"x":116,"y":878,"width":763,"height":12}},{"id":"f9ac8aa8-5a51-4e64-9e51-0014340a26b8","block_type":"box","text":"II-78","page_number":137,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"4b053cdc-fbec-4a43-b8f0-7b4a328133e5","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":137,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3b323a6c-2a07-40eb-9785-713a29adc84c","block_type":"box","text":"to certain conditions. A Call Right that is not exercised prior to maturity of the related Municipal Bond","page_number":138,"box":{"x":116,"y":87,"width":751,"height":12}},{"id":"bfc12168-48ee-4628-876e-65df2bc19b13","block_type":"box","text":"will expire without value. The economic effect of holding both the Call Right and the related Municipal","page_number":138,"box":{"x":116,"y":102,"width":756,"height":13}},{"id":"66dec355-6e85-43ff-bb92-300ccb27e940","block_type":"box","text":"Bond is identical to holding a Municipal Bond as a non-callable security. Certain investments in such","page_number":138,"box":{"x":117,"y":118,"width":748,"height":12}},{"id":"e2adfa26-c2f2-4d42-909d-9c5ec3ac9573","block_type":"box","text":"obligations may be illiquid.","page_number":138,"box":{"x":116,"y":134,"width":201,"height":12}},{"id":"cd687f53-e9d9-413a-9f6e-01379460cd58","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":138,"box":{"x":116,"y":165,"width":323,"height":11}},{"id":"2b9e0cf6-331d-4318-b21f-851ee60482ae","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":138,"box":{"x":440,"y":165,"width":439,"height":12}},{"id":"ecd1e48b-30f4-4e2a-a56d-ff0000271dbb","block_type":"box","text":"fluctuations or to enhance a Fund’s income, a Fund may enter into interest rate swap transactions such","page_number":138,"box":{"x":116,"y":180,"width":772,"height":12}},{"id":"570e8291-f8b5-4bc1-8087-19570432e6c7","block_type":"box","text":"as Municipal Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial","page_number":138,"box":{"x":116,"y":196,"width":769,"height":12}},{"id":"f99cd5cc-aae1-4554-a417-5747b8aaf016","block_type":"box","text":"Markets Association Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters","page_number":138,"box":{"x":117,"y":211,"width":758,"height":12}},{"id":"d4d3eb3b-b562-4a76-aca6-ea7e2b8fc494","block_type":"box","text":"into these transactions, the Fund expects to do so primarily to preserve a return or spread on a","page_number":138,"box":{"x":117,"y":227,"width":708,"height":12}},{"id":"006fbe83-1b85-422f-9f0c-e39b9a4a7aad","block_type":"box","text":"particular investment or portion of its portfolio or to protect against any increase in the price of","page_number":138,"box":{"x":117,"y":242,"width":699,"height":12}},{"id":"7e4d0672-00c1-40d9-8b73-fcce81909ad0","block_type":"box","text":"securities the Fund anticipates purchasing at a later date. A Fund intends to use these transactions","page_number":138,"box":{"x":116,"y":258,"width":741,"height":12}},{"id":"f4a08051-1864-4005-89ad-22706ea6683c","block_type":"box","text":"primarily as a hedge rather than as a speculative investment. However, a Fund also may invest in","page_number":138,"box":{"x":117,"y":273,"width":729,"height":12}},{"id":"65f373e2-ba5f-4d5f-b475-bd2f4073c79e","block_type":"box","text":"MMD Swaps and SIFMA Swaps to enhance income or gain or to increase the Fund’s yield, for","page_number":138,"box":{"x":117,"y":289,"width":704,"height":12}},{"id":"e0a4f66a-1647-4ae6-a27f-406f998c02d9","block_type":"box","text":"example, during periods of steep interest rate yield curves (","page_number":138,"box":{"x":116,"y":304,"width":441,"height":12}},{"id":"51d31cb4-8df3-4dc7-99f5-8aa2128aab04","block_type":"box","text":"i.e.","page_number":138,"box":{"x":558,"y":304,"width":20,"height":10}},{"id":"479b8f5d-29ae-40c6-95ca-ae7147f325c3","block_type":"box","text":", wide differences between short-term","page_number":138,"box":{"x":581,"y":304,"width":284,"height":11}},{"id":"5a791856-4ee2-4e9c-a91f-28306e7faaac","block_type":"box","text":"and long-term interest rates).","page_number":138,"box":{"x":116,"y":320,"width":221,"height":12}},{"id":"4eab0bc7-c7e5-46e5-a02e-886447d36a8e","block_type":"box","text":"A Fund may purchase and sell SIFMA Swaps in the SIFMA swap market. In a SIFMA Swap, a Fund","page_number":138,"box":{"x":116,"y":351,"width":747,"height":12}},{"id":"42639dbf-7131-440d-910c-a4ad64b459cf","block_type":"box","text":"exchanges with another party their respective commitments to pay or receive interest (","page_number":138,"box":{"x":116,"y":366,"width":642,"height":12}},{"id":"a19e1682-4f8b-497b-8548-7f98dc9a007b","block_type":"box","text":"e.g.","page_number":138,"box":{"x":760,"y":369,"width":25,"height":9}},{"id":"b018bd60-4347-48d1-8d05-38e4fc8fa885","block_type":"box","text":", an","page_number":138,"box":{"x":788,"y":369,"width":32,"height":8}},{"id":"3c31bb9c-69b8-4df6-a8fe-1512823d4550","block_type":"box","text":"exchange of fixed rate payments for floating rate payments linked to the SIFMA Municipal Swap","page_number":138,"box":{"x":116,"y":382,"width":717,"height":12}},{"id":"b7415751-7244-43e1-bd7c-acf003e3f022","block_type":"box","text":"Index). Because the underlying index is a tax-exempt index, SIFMA Swaps may reduce cross-market","page_number":138,"box":{"x":117,"y":397,"width":755,"height":12}},{"id":"4ab792f9-fb55-4900-8a1c-d1ef28ac88f7","block_type":"box","text":"risks incurred by a Fund and increase a Fund’s ability to hedge effectively. SIFMA Swaps are typically","page_number":138,"box":{"x":117,"y":413,"width":760,"height":12}},{"id":"d1b56407-f4a7-41cd-ade3-17e2cd21ef7b","block_type":"box","text":"quoted for the entire yield curve, beginning with a seven day floating rate index out to 30 years. The","page_number":138,"box":{"x":116,"y":428,"width":745,"height":12}},{"id":"a453e313-79d2-4b4f-8fa3-bde9152e14ba","block_type":"box","text":"duration of a SIFMA Swap is approximately equal to the duration of a fixed-rate Municipal Bond with","page_number":138,"box":{"x":116,"y":444,"width":747,"height":12}},{"id":"9bcc7fce-0550-4cac-b62a-0ba1f6c702ed","block_type":"box","text":"the same attributes as the swap (","page_number":138,"box":{"x":116,"y":459,"width":247,"height":12}},{"id":"e9063064-0318-4c64-b599-32cdb42a9589","block_type":"box","text":"e.g.","page_number":138,"box":{"x":365,"y":462,"width":25,"height":9}},{"id":"1640f49f-5bae-48f9-9d2a-77b248dc4a35","block_type":"box","text":", coupon, maturity, call feature).","page_number":138,"box":{"x":393,"y":459,"width":240,"height":12}},{"id":"ff34161b-28d4-4a4c-8b75-5700834136e3","block_type":"box","text":"A Fund may also purchase and sell MMD Swaps, also known as MMD rate locks. An MMD Swap","page_number":138,"box":{"x":116,"y":490,"width":727,"height":12}},{"id":"6fbb3839-c197-4744-a8db-a99a3fe60dac","block_type":"box","text":"permits a Fund to lock in a specified municipal interest rate for a portion of its portfolio to preserve a","page_number":138,"box":{"x":117,"y":506,"width":744,"height":12}},{"id":"f0d1f6e6-f0ed-44dc-8dd0-a4081b8dde12","block_type":"box","text":"return on a particular investment or a portion of its portfolio as a duration management technique or to","page_number":138,"box":{"x":117,"y":521,"width":761,"height":12}},{"id":"7adb33b0-cfd3-4e8d-9f71-dc9fc3b532fe","block_type":"box","text":"protect against any increase in the price of securities to be purchased at a later date. By using an MMD","page_number":138,"box":{"x":117,"y":537,"width":771,"height":12}},{"id":"8a456b2d-aec3-43ae-9915-77c491ffcb29","block_type":"box","text":"Swap, a Fund can create a synthetic long or short position, allowing the Fund to select the most","page_number":138,"box":{"x":116,"y":552,"width":715,"height":12}},{"id":"30746359-94a6-447f-8cb7-bfe89654f164","block_type":"box","text":"attractive part of the yield curve. An MMD Swap is a contract between a Fund and an MMD Swap","page_number":138,"box":{"x":116,"y":568,"width":729,"height":12}},{"id":"8eee8df7-d663-48f3-b453-8d92b502845d","block_type":"box","text":"provider pursuant to which the parties agree to make payments to each other on a notional amount,","page_number":138,"box":{"x":117,"y":583,"width":744,"height":12}},{"id":"76ce3e68-96c9-452a-9b5d-2d04ef5bd8e2","block_type":"box","text":"contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or below a","page_number":138,"box":{"x":116,"y":599,"width":769,"height":12}},{"id":"8e486e38-a051-4c37-b07e-e29da87d1812","block_type":"box","text":"specified level on the expiration date of the contract. For example, if a Fund buys an MMD Swap and","page_number":138,"box":{"x":116,"y":614,"width":754,"height":12}},{"id":"443cd72d-4c2b-435a-b8b1-99012de04e4e","block_type":"box","text":"the Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration","page_number":138,"box":{"x":116,"y":630,"width":763,"height":12}},{"id":"6da8dbd9-bd82-4933-9b84-c59066bf6ed7","block_type":"box","text":"date, the counterparty to the contract will make a payment to the Fund equal to the specified level","page_number":138,"box":{"x":116,"y":645,"width":730,"height":12}},{"id":"b47fef91-f827-42a3-9339-25e6e0ee9a90","block_type":"box","text":"minus the actual level, multiplied by the notional amount of the contract. If the Municipal Market Data","page_number":138,"box":{"x":117,"y":661,"width":746,"height":12}},{"id":"8f8d8adb-63f0-42eb-969e-12dbea9e5588","block_type":"box","text":"AAA General Obligation Scale is above the specified level on the expiration date, a Fund will make a","page_number":138,"box":{"x":116,"y":676,"width":746,"height":12}},{"id":"2da5ae3a-f162-4633-921c-44b0e84abc6a","block_type":"box","text":"payment to the counterparty equal to the actual level minus the specified level, multiplied by the","page_number":138,"box":{"x":117,"y":692,"width":708,"height":12}},{"id":"332339d8-6337-4aed-8b60-a843367b7ba1","block_type":"box","text":"notional amount of the contract.","page_number":138,"box":{"x":117,"y":707,"width":233,"height":10}},{"id":"92d37e0b-7d7d-484a-b44d-e5f726a3788f","block_type":"box","text":"In connection with investments in SIFMA and MMD Swaps,","page_number":138,"box":{"x":117,"y":738,"width":438,"height":12}},{"id":"f377ff10-546d-4454-bbc0-80f6a4fb85e3","block_type":"box","text":"there is a risk that municipal yields will","page_number":138,"box":{"x":561,"y":738,"width":283,"height":12}},{"id":"5e8f515b-dea0-4472-8254-007d9cf7ce15","block_type":"box","text":"move in the opposite direction than anticipated by a Fund, which would cause the Fund to make","page_number":138,"box":{"x":117,"y":754,"width":711,"height":12}},{"id":"a0b4a098-07d8-4417-a8f7-6516efcdcb1b","block_type":"box","text":"payments to its counterparty in the transaction that could adversely affect the Fund’s performance.","page_number":138,"box":{"x":117,"y":769,"width":729,"height":12}},{"id":"78429fa5-76cf-4f39-ba1f-9cd86c581e5c","block_type":"box","text":"Insured Municipal Bonds.","page_number":138,"box":{"x":117,"y":800,"width":186,"height":12}},{"id":"bcfd62a2-ee4e-4d3f-ac11-468d2a854561","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees","page_number":138,"box":{"x":310,"y":800,"width":555,"height":12}},{"id":"157b1406-934e-49a7-b478-1e680bec3e92","block_type":"box","text":"that interest payments on the bond will be made on time and the principal will be repaid when the bond","page_number":138,"box":{"x":116,"y":816,"width":762,"height":12}},{"id":"b5c278b8-5fec-46a9-bf0e-345eb96f4952","block_type":"box","text":"matures. Either the issuer of the bond or the Fund purchases the insurance. Insurance is expected to","page_number":138,"box":{"x":117,"y":831,"width":755,"height":12}},{"id":"29504af2-e17a-4d38-9684-cbbc7da1db9e","block_type":"box","text":"protect the Fund against losses caused by a bond issuer’s failure to make interest or principal","page_number":138,"box":{"x":117,"y":847,"width":699,"height":12}},{"id":"fc34b8ea-6087-4d63-8f2d-7dd06d4db49b","block_type":"box","text":"payments. However, insurance does not protect the Fund or its shareholders against losses caused by","page_number":138,"box":{"x":117,"y":862,"width":767,"height":12}},{"id":"287d160f-21d1-43f2-a4d8-ae465120fe30","block_type":"box","text":"declines in a bond’s market value. Also, the Fund cannot be certain that any insurance company does","page_number":138,"box":{"x":116,"y":878,"width":761,"height":12}},{"id":"9824ba5b-2edf-4b0b-8a47-46a9516ea65b","block_type":"box","text":"II-79","page_number":138,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"4e8a90bb-7143-4a31-8b37-f2f190feee3e","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":138,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"672fa27f-3dc3-400a-8bb2-8d4a6d52a232","block_type":"box","text":"not make these payments. In addition, if the Fund purchases the insurance, it may pay the premiums,","page_number":139,"box":{"x":117,"y":87,"width":758,"height":12}},{"id":"03f2461a-1446-4a36-97b3-a5912e295059","block_type":"box","text":"which will reduce the Fund’s yield. The Fund seeks to use only insurance companies with claims","page_number":139,"box":{"x":116,"y":103,"width":721,"height":12}},{"id":"79db4430-d6bf-4c52-95db-a120f40cd57d","block_type":"box","text":"paying ability, financial strength, or equivalent ratings of at least investment grade. However, if","page_number":139,"box":{"x":117,"y":118,"width":703,"height":12}},{"id":"693d24fd-4f44-45d8-96cb-d2836cade171","block_type":"box","text":"insurance from insurers with these ratings is not available, the Fund may use insurance companies","page_number":139,"box":{"x":117,"y":134,"width":739,"height":12}},{"id":"efb86d83-c482-4827-9527-19bc404b6027","block_type":"box","text":"with lower ratings or stop purchasing insurance or insured bonds. If a bond’s insurer fails to fulfill its","page_number":139,"box":{"x":116,"y":149,"width":742,"height":12}},{"id":"7a57c332-4c53-4902-8d29-f319405a556b","block_type":"box","text":"obligations or loses its credit rating, the value of the bond could drop.","page_number":139,"box":{"x":116,"y":165,"width":517,"height":12}},{"id":"4bd0d69d-dc22-476c-97f0-0d06909c52a3","block_type":"box","text":"Build America Bonds.","page_number":139,"box":{"x":116,"y":196,"width":159,"height":9}},{"id":"e0ddba3c-2a17-472a-a240-67e2e5ae3330","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S.","page_number":139,"box":{"x":276,"y":196,"width":604,"height":12}},{"id":"775b6cad-8239-49dd-b119-d6ada6685345","block_type":"box","text":"federal income tax credit; however, the issuer of a Build America Bond may instead elect to receive a","page_number":139,"box":{"x":116,"y":211,"width":756,"height":12}},{"id":"fb5204f9-2af8-4987-ac9a-ca5dbb9c90fc","block_type":"box","text":"cash payment directly from the federal government in lieu of holders such as the fund receiving a tax","page_number":139,"box":{"x":116,"y":227,"width":752,"height":12}},{"id":"73bc33f7-6472-46b2-914b-893af2091510","block_type":"box","text":"credit. The interest on Build America Bonds is taxable for U.S. federal income tax purposes. If the Fund","page_number":139,"box":{"x":116,"y":242,"width":772,"height":12}},{"id":"7929f622-da87-4b2b-8441-205739db540c","block_type":"box","text":"does receive tax credits from Build America Bonds or other tax credit bonds on one or more specified","page_number":139,"box":{"x":116,"y":258,"width":757,"height":11}},{"id":"10587242-5905-4710-8811-05e8287fbb23","block_type":"box","text":"dates during the fund’s taxable year, and the Fund satisfies the minimum distribution requirement, the","page_number":139,"box":{"x":116,"y":273,"width":760,"height":12}},{"id":"7caafa41-ce7e-4488-ab1f-86e070fb8cc2","block_type":"box","text":"Fund may elect for U.S. federal income tax purposes to pass through to shareholders tax credits","page_number":139,"box":{"x":117,"y":289,"width":719,"height":12}},{"id":"d30d14cd-2ae5-40b0-be62-d1d9ffaa2244","block_type":"box","text":"otherwise allowable to the Fund for that year with respect to such bonds. A tax credit bond is defined in","page_number":139,"box":{"x":116,"y":304,"width":770,"height":12}},{"id":"50a67e77-66fc-4b0f-bbc4-40bce28d61fc","block_type":"box","text":"the Code as a “qualified tax credit bond” (which includes a qualified forestry conservation bond, a new","page_number":139,"box":{"x":116,"y":320,"width":761,"height":12}},{"id":"e437f831-e0f5-4718-8364-a66b35a29e14","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy","page_number":139,"box":{"x":116,"y":335,"width":729,"height":12}},{"id":"f29fbf70-7815-4a54-a88d-3d7cd45dd3ab","block_type":"box","text":"bond, each of which must meet certain requirements specified in the Code), a “Build America Bond”","page_number":139,"box":{"x":117,"y":351,"width":744,"height":12}},{"id":"2be273de-1a71-4acd-9dff-a0d227c5b53f","block_type":"box","text":"(which includes certain qualified bonds issued before January 1, 2011) or certain other specified","page_number":139,"box":{"x":117,"y":366,"width":717,"height":12}},{"id":"90f878b0-f8b7-4ce2-8eba-a871962f22e2","block_type":"box","text":"bonds. If the Fund were to so elect, a shareholder would be required to include in income and would be","page_number":139,"box":{"x":117,"y":382,"width":771,"height":12}},{"id":"58c50d37-b934-4834-b780-7fc4e69d8a1f","block_type":"box","text":"entitled to claim as a tax credit an amount equal to a proportionate share of such credits, and such","page_number":139,"box":{"x":116,"y":397,"width":735,"height":12}},{"id":"2510ddb7-124b-4cc5-ac99-03f1a9c27855","block_type":"box","text":"amount would be subject to withholding provisions of the Code. Certain limitations may apply on the","page_number":139,"box":{"x":116,"y":413,"width":746,"height":12}},{"id":"26575ed6-678a-4892-ab6b-1aefe5cde39e","block_type":"box","text":"extent to which the credit may be claimed.","page_number":139,"box":{"x":116,"y":428,"width":318,"height":12}},{"id":"2dae0853-9cc2-413c-a745-6053ea917c6f","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":139,"box":{"x":118,"y":459,"width":263,"height":12}},{"id":"36b4c92d-503d-4c34-a6b5-34d1e43aacb3","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which","page_number":139,"box":{"x":382,"y":459,"width":494,"height":12}},{"id":"e8804ccf-c215-4e16-ad67-59ee67408801","block_type":"box","text":"may be in the form of tender option bonds, variable rate demand obligations, participations, beneficial","page_number":139,"box":{"x":117,"y":475,"width":757,"height":12}},{"id":"15c972e1-d24c-4431-bfa4-049bb3589cf9","block_type":"box","text":"interests in a trust, partnership interests or other forms. These investments are described in greater","page_number":139,"box":{"x":117,"y":490,"width":741,"height":12}},{"id":"3faddbbe-4fff-4ebc-b3c7-d13cf6877372","block_type":"box","text":"detail above in this section. Some of the structures used by certain Funds include interests in long-term","page_number":139,"box":{"x":116,"y":506,"width":771,"height":12}},{"id":"a8effe5f-f171-4112-8abb-95b3deb0d6d7","block_type":"box","text":"fixed-rate municipal debt obligations, held by a trustee or custodian, that are coupled with tender","page_number":139,"box":{"x":116,"y":521,"width":720,"height":12}},{"id":"563ffecf-ce44-4760-84b3-42a5ec047fc7","block_type":"box","text":"option, demand and other features when the tax-exempt municipal investments are created. Together,","page_number":139,"box":{"x":116,"y":537,"width":764,"height":12}},{"id":"d11d7f79-a0de-4065-b921-e071fd2b948f","block_type":"box","text":"these features entitle the holder of the interest to tender (or put) the underlying municipal debt","page_number":139,"box":{"x":116,"y":552,"width":701,"height":12}},{"id":"8f6fe0da-bfbf-49d2-acab-8fc03c9488da","block_type":"box","text":"obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":139,"box":{"x":116,"y":568,"width":667,"height":12}},{"id":"a9ee44ab-f6cf-4a07-942c-63b933276a53","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to","page_number":139,"box":{"x":117,"y":599,"width":745,"height":12}},{"id":"6a47626e-a41b-49fd-acb8-77df5ec8b6d8","block_type":"box","text":"receive specific future interest payments, principal payments, or both, on the underlying securities held","page_number":139,"box":{"x":117,"y":614,"width":766,"height":12}},{"id":"2f8c5971-934a-437c-9ddc-aadd6cf346e7","block_type":"box","text":"by the custodian. Under such arrangements, the holder of the custodial receipt has the option to tender","page_number":139,"box":{"x":117,"y":630,"width":769,"height":12}},{"id":"89aacd46-fd2e-4d8e-8088-b572c0651937","block_type":"box","text":"the underlying securities at their face value to the sponsor (","page_number":139,"box":{"x":116,"y":645,"width":440,"height":12}},{"id":"ab507cc5-1569-42c1-a8fe-d6dea4fc8b1a","block_type":"box","text":"e.g.","page_number":139,"box":{"x":557,"y":648,"width":26,"height":9}},{"id":"4249d27a-f9d8-4e7a-bc7c-5715736530e5","block_type":"box","text":", a Fund, or a bank or broker-dealer or","page_number":139,"box":{"x":586,"y":645,"width":289,"height":11}},{"id":"75be5a7a-037f-45cb-92b8-0bfd74a03f56","block_type":"box","text":"other financial institution), which is paid periodic fees equal to the difference between the securities’","page_number":139,"box":{"x":116,"y":661,"width":738,"height":12}},{"id":"4b066bfc-1665-4b29-95bc-2fff4b3c72ef","block_type":"box","text":"fixed coupon rate and the rate that would cause the securities, coupled with the tender option, to trade","page_number":139,"box":{"x":116,"y":676,"width":758,"height":12}},{"id":"cc94dcd8-b432-4076-8fdf-7c015615a21e","block_type":"box","text":"at par on the date of a rate adjustment.","page_number":139,"box":{"x":116,"y":692,"width":289,"height":12}},{"id":"f1798017-423f-44ac-aa7d-730b586da2bc","block_type":"box","text":"A participation interest gives the Fund an undivided interest in a Municipal Bond in the proportion the","page_number":139,"box":{"x":116,"y":723,"width":747,"height":12}},{"id":"5faff692-d301-4564-93ce-7e35e7f6ce7f","block_type":"box","text":"Fund’s participation bears to the total principal amount of the Municipal Bond, and typically provides for","page_number":139,"box":{"x":117,"y":738,"width":764,"height":12}},{"id":"4b7bd308-cafc-4fc0-9995-cd589aa2bdce","block_type":"box","text":"a repurchase feature for all or any part of the full principal amount of the participation interest, plus","page_number":139,"box":{"x":116,"y":754,"width":729,"height":12}},{"id":"a1c11c74-eac6-41f2-a9fa-2718bdb93aae","block_type":"box","text":"accrued interest. Trusts and partnerships are typically used to convert long-term fixed rate high quality","page_number":139,"box":{"x":116,"y":769,"width":759,"height":12}},{"id":"c651e72c-99c5-489f-b9ab-0a442a3084df","block_type":"box","text":"bonds of a single state or municipal issuer into variable or floating rate demand instruments.","page_number":139,"box":{"x":117,"y":785,"width":680,"height":12}},{"id":"b0e524ff-d9c1-4246-af2b-e26cd4460e66","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt","page_number":139,"box":{"x":116,"y":816,"width":741,"height":12}},{"id":"74142f39-ea02-455a-9940-782aaf874f3d","block_type":"box","text":"obligations which give the holder the right to receive payment of principal subject to the conditions","page_number":139,"box":{"x":116,"y":831,"width":731,"height":12}},{"id":"2bb25f16-138f-4fa7-9aa4-2bba08ec21dd","block_type":"box","text":"described above. The IRS has not ruled on whether the interest received on tax-exempt municipal","page_number":139,"box":{"x":116,"y":847,"width":732,"height":12}},{"id":"2edf79fd-2154-49d8-b036-21fb2bc19c28","block_type":"box","text":"investments in the form of participation interests or custodial receipts is tax-exempt, and accordingly,","page_number":139,"box":{"x":117,"y":862,"width":751,"height":12}},{"id":"c129a496-a336-4e5c-8505-38248598ba85","block_type":"box","text":"purchases of any such interests or receipts are based on the opinions of counsel to the sponsors of","page_number":139,"box":{"x":117,"y":878,"width":742,"height":12}},{"id":"87c15619-9481-4277-808f-ee07342f56c4","block_type":"box","text":"II-80","page_number":139,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"4dd701cd-1a41-4a9a-a793-74f732a90a72","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":139,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8a0d357d-7593-4b6a-b0e5-a160ac8e0e3c","block_type":"box","text":"such derivative securities. Neither a Fund nor its investment adviser or sub-advisers will review the","page_number":140,"box":{"x":116,"y":87,"width":738,"height":10}},{"id":"662e8117-3aa2-47e6-a79d-fe509cc7a9f5","block_type":"box","text":"proceedings related to the creation of any tax-exempt municipal investments or the basis for such","page_number":140,"box":{"x":117,"y":102,"width":728,"height":13}},{"id":"c3ec8636-f0b8-4f20-9429-b8dd74e2e114","block_type":"box","text":"opinions.","page_number":140,"box":{"x":116,"y":118,"width":72,"height":12}},{"id":"cb3c7a54-1ed3-494c-a5ee-4a45ae14f221","block_type":"box","text":"Operational and Technology Risks.","page_number":140,"box":{"x":117,"y":146,"width":279,"height":12}},{"id":"0a2c22fe-2d8d-4409-9579-f335e0b48d5d","block_type":"box","text":"The Fund and the entities with which it interacts directly or","page_number":140,"box":{"x":397,"y":146,"width":442,"height":12}},{"id":"68b3104f-02bc-457a-bcbf-26a4a04ab062","block_type":"box","text":"indirectly are susceptible to operational and technology risks, including those related to human errors,","page_number":140,"box":{"x":117,"y":162,"width":758,"height":12}},{"id":"b989776f-b351-4a85-abe5-72f970dafd21","block_type":"box","text":"processing errors, communication errors, systems failures, cybersecurity incidents, and the use of","page_number":140,"box":{"x":117,"y":177,"width":731,"height":12}},{"id":"837a9143-f8f5-427d-bea1-679a00f636cc","block_type":"box","text":"artificial intelligence and machine learning (“AI”), which may result in losses for the Fund and its","page_number":140,"box":{"x":116,"y":192,"width":713,"height":13}},{"id":"de51eb1c-d692-45fd-ada4-2314a24eb003","block_type":"box","text":"shareholders or impair the Fund’s operations. These entities include, but are not limited to, the Fund’s","page_number":140,"box":{"x":116,"y":208,"width":760,"height":12}},{"id":"118332b6-ad94-49d3-80bd-33b24c918ee3","block_type":"box","text":"adviser, administrator, distributor, other service providers (e.g., index and benchmark providers,","page_number":140,"box":{"x":116,"y":223,"width":716,"height":13}},{"id":"ddc316f7-b1d9-4d02-afa0-468e095eb1ca","block_type":"box","text":"accountants, custodians, and transfer agents), financial intermediaries, counterparties, market makers,","page_number":140,"box":{"x":116,"y":239,"width":768,"height":12}},{"id":"0a9b5ffd-859f-488e-8f64-e938403986a4","block_type":"box","text":"Authorized Participants, listing exchanges, other financial market operators, and governmental","page_number":140,"box":{"x":116,"y":254,"width":706,"height":13}},{"id":"f1110590-804f-482c-bfb2-9e752c3d411a","block_type":"box","text":"authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":140,"box":{"x":116,"y":270,"width":748,"height":12}},{"id":"bb6e2e87-1c61-4899-8c1a-ec0a517cd3bc","block_type":"box","text":"could also result in material adverse consequences for such issuers and may cause the Fund’s","page_number":140,"box":{"x":116,"y":285,"width":711,"height":13}},{"id":"4d8b52cf-aa00-4363-8aaa-550b502589e2","block_type":"box","text":"investments in such issuers to lose value. The Fund may incur substantial costs in order to mitigate","page_number":140,"box":{"x":117,"y":301,"width":741,"height":12}},{"id":"137861b8-f7a5-4ee4-8c15-741574b0aa16","block_type":"box","text":"operational and technology risks.","page_number":140,"box":{"x":116,"y":317,"width":250,"height":12}},{"id":"f16fbe2e-ef6a-41c7-ad42-e3e55aacae47","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in","page_number":140,"box":{"x":117,"y":344,"width":754,"height":12}},{"id":"123f2611-29c5-41af-bee6-f608901eaf69","block_type":"box","text":"which the Fund invests, the Fund or any of its service providers. They include, but are not limited to,","page_number":140,"box":{"x":116,"y":360,"width":746,"height":12}},{"id":"1aca8ae5-0a62-4881-b046-a295d7c14420","block_type":"box","text":"gaining unauthorized access to systems, misappropriating assets or sensitive information, corrupting or","page_number":140,"box":{"x":116,"y":375,"width":772,"height":12}},{"id":"79390142-ca08-4207-8cd3-910e92aeb57b","block_type":"box","text":"destroying data, and causing operational disruption. Geopolitical tension may increase the scale and","page_number":140,"box":{"x":116,"y":391,"width":751,"height":12}},{"id":"24890403-639f-4d2d-a5ed-90afdd86641d","block_type":"box","text":"sophistication of deliberate attacks, particularly those from nation states or from entities with nation","page_number":140,"box":{"x":116,"y":406,"width":738,"height":12}},{"id":"82bb709c-36f1-4b6e-82b0-40cf3b91bf75","block_type":"box","text":"state backing. 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These advancements could harm the Fund and its portfolio investments by reducing the","page_number":140,"box":{"x":117,"y":608,"width":756,"height":12}},{"id":"3f9c0072-9b6a-4797-ae9f-7f9b48c58f3e","block_type":"box","text":"demand for both the technology and software offerings of the Fund’s portfolio investments.","page_number":140,"box":{"x":116,"y":623,"width":677,"height":13}},{"id":"5b815c80-7a3a-4d45-8e87-80f3f6a92b7e","block_type":"box","text":"Additionally, these advancements could significantly disrupt the Fund’s portfolio investments and","page_number":140,"box":{"x":116,"y":639,"width":722,"height":12}},{"id":"137e5703-77f2-4b0b-bee8-26ae7f8a856b","block_type":"box","text":"subject them to increased competition, which could have a material adverse effect on business,","page_number":140,"box":{"x":116,"y":654,"width":714,"height":13}},{"id":"7246cf22-c694-47b7-80ea-e8a3a6e0f12c","block_type":"box","text":"financial condition, and results of operations. AI technology advancements, including efficiency","page_number":140,"box":{"x":116,"y":670,"width":703,"height":12}},{"id":"44bc8f5b-e5f5-4ed7-8d67-8110154d5391","block_type":"box","text":"improvements, without related increases in the adoption and development of such technologies, could","page_number":140,"box":{"x":117,"y":685,"width":755,"height":13}},{"id":"56f18d4c-81a0-4660-8ab8-6c365f8e88c1","block_type":"box","text":"also negatively impact demand for, and the valuation of, digital infrastructure assets.","page_number":140,"box":{"x":116,"y":701,"width":624,"height":12}},{"id":"ebeeb21e-6e6f-4083-bcc4-12f0b0c75781","block_type":"box","text":"The Fund and its portfolio investments could be exposed to the risks of AI technology if third-party","page_number":140,"box":{"x":116,"y":729,"width":727,"height":12}},{"id":"712d5bb6-6ceb-4019-ab31-3773fb7580bd","block_type":"box","text":"service providers or any counterparties, whether or not known to the Fund, also use AI technology in","page_number":140,"box":{"x":116,"y":745,"width":745,"height":11}},{"id":"0c4da460-f379-47ad-bf4e-9f6ff33cd5da","block_type":"box","text":"their business activities. The Fund and its service providers may not be in a position to control the use","page_number":140,"box":{"x":116,"y":760,"width":756,"height":12}},{"id":"efc8f771-4202-4567-8f5c-e39a1931e0b3","block_type":"box","text":"of AI technology in third-party products or services.","page_number":140,"box":{"x":116,"y":775,"width":377,"height":12}},{"id":"6fe8b851-36c8-438b-9445-3671b69f54ff","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable","page_number":140,"box":{"x":117,"y":803,"width":745,"height":12}},{"id":"af1b3a0d-785d-478b-a1b8-b135ffd3fcfc","block_type":"box","text":"policies, contractual or other obligations or restrictions, resulting in such confidential information","page_number":140,"box":{"x":117,"y":819,"width":708,"height":12}},{"id":"9d199e10-d83b-4c48-8002-4da60c543888","block_type":"box","text":"becoming accessible by other third-party AI technology applications and users.","page_number":140,"box":{"x":117,"y":834,"width":589,"height":12}},{"id":"7874c5b5-b5db-45ba-9ca1-6f8ecb3d6c93","block_type":"box","text":"Independent of its context of use, AI technology is generally highly reliant on the collection and","page_number":140,"box":{"x":117,"y":862,"width":706,"height":12}},{"id":"327784a0-643a-4500-8954-6e50ead5e7e6","block_type":"box","text":"analysis of large amounts of data, may incorporate biased or inaccurate data, and it is not possible or","page_number":140,"box":{"x":116,"y":878,"width":757,"height":12}},{"id":"11104cd0-3769-4158-bb64-365a484b6425","block_type":"box","text":"II-81","page_number":140,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"777af4e1-fe99-4eb5-bfc3-3c20136dd0db","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":140,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"bace0184-351b-4866-a6d2-f200487fa441","block_type":"box","text":"practicable to incorporate all relevant data into the models that AI technology utilizes to operate.","page_number":141,"box":{"x":117,"y":87,"width":715,"height":12}},{"id":"0fd21bef-128d-4e16-b2e4-a16a7e4cbe1d","block_type":"box","text":"Certain data in such models will inevitably contain a degree of inaccuracy and error, or could otherwise","page_number":141,"box":{"x":117,"y":102,"width":768,"height":13}},{"id":"659c3976-959f-4ed7-a66c-7e39255a28ec","block_type":"box","text":"be inadequate or flawed, which would be likely to degrade the effectiveness of AI technology. The","page_number":141,"box":{"x":117,"y":118,"width":729,"height":12}},{"id":"52c4dac3-67e3-4177-86dc-9d0792ebce0e","block_type":"box","text":"output or results of any such AI technologies may therefore be incomplete, erroneous, distorted or","page_number":141,"box":{"x":116,"y":134,"width":733,"height":12}},{"id":"8f1e86d3-3f7a-4a4a-b7ad-3169e2bd95d4","block_type":"box","text":"misleading. Further, AI tools may lack transparency as to how data is utilized and how outputs are","page_number":141,"box":{"x":117,"y":149,"width":731,"height":12}},{"id":"000b4e3e-8dc3-4ecc-bfc7-2cb1ef0bf7c9","block_type":"box","text":"generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":141,"box":{"x":116,"y":165,"width":684,"height":12}},{"id":"4de3f57d-3978-4cb9-a604-ba1843805a3c","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its portfolio investments are exposed to","page_number":141,"box":{"x":117,"y":180,"width":764,"height":12}},{"id":"e29cbbd0-69cc-448e-9718-41002ff0a378","block_type":"box","text":"the risks of AI technology use, any such inaccuracies or errors could have adverse impacts on the","page_number":141,"box":{"x":116,"y":196,"width":732,"height":12}},{"id":"9d56d992-46fa-4a50-9a33-e1ec2cb8c5dd","block_type":"box","text":"Fund or its investments.","page_number":141,"box":{"x":117,"y":211,"width":182,"height":10}},{"id":"697c223a-c76b-4a9d-b0a2-5a6763f16927","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to","page_number":141,"box":{"x":117,"y":242,"width":705,"height":12}},{"id":"b9293e58-6249-4ed0-a2c4-6e87834e2c27","block_type":"box","text":"monitoring and compliance. For example, in April 2023, the Federal Trade Commission, U.S.","page_number":141,"box":{"x":117,"y":258,"width":693,"height":12}},{"id":"42ea2ba0-4caf-4fda-9225-e18cfa8d1a80","block_type":"box","text":"Department of Justice, Consumer Financial Protection Bureau, and U.S. Equal Employment","page_number":141,"box":{"x":117,"y":273,"width":686,"height":12}},{"id":"b283e685-9ff9-4d39-ab36-64f37b6fbbb4","block_type":"box","text":"Opportunity Commission released a joint statement on artificial intelligence demonstrating interest in","page_number":141,"box":{"x":116,"y":289,"width":749,"height":12}},{"id":"bf7f5f81-b685-4130-be5f-4cee007f5ea6","block_type":"box","text":"monitoring the development and use of automated systems and enforcement of their respective laws","page_number":141,"box":{"x":117,"y":304,"width":752,"height":12}},{"id":"73bae7d7-0289-41e1-b9b7-fd27b627c3fb","block_type":"box","text":"and regulations. In October 2023, an executive order established new standards for AI safety and","page_number":141,"box":{"x":116,"y":320,"width":729,"height":12}},{"id":"e9b55324-a432-47a3-a42b-27f4a0177f7f","block_type":"box","text":"security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Artificial Intelligence","page_number":141,"box":{"x":116,"y":335,"width":769,"height":12}},{"id":"39d6764f-f4f1-4a27-8543-72942c62d67d","block_type":"box","text":"Act, which applies to certain AI technology and the","page_number":141,"box":{"x":116,"y":351,"width":380,"height":12}},{"id":"3f79c541-2af2-4885-8ed0-c32362bccf81","block_type":"box","text":"data used to train, test, and deploy them, which","page_number":141,"box":{"x":497,"y":351,"width":357,"height":12}},{"id":"d98617e3-a5c0-4f14-b33e-d36e223f3925","block_type":"box","text":"may create additional compliance burdens, higher administrative costs, and significant penalties should","page_number":141,"box":{"x":117,"y":366,"width":770,"height":12}},{"id":"61cec2a6-e0d0-4fae-973f-1d1d76e3b076","block_type":"box","text":"the Fund, the adviser, or the Fund’s portfolio investments fail to comply.","page_number":141,"box":{"x":116,"y":382,"width":537,"height":12}},{"id":"5f9403b7-901d-43c3-9287-ef87458caaa5","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to","page_number":141,"box":{"x":116,"y":413,"width":711,"height":12}},{"id":"9481397a-9b89-483c-98ff-79849c8f94f9","block_type":"box","text":"develop rapidly, and it is impossible to predict the future risks that may arise from such developments.","page_number":141,"box":{"x":116,"y":428,"width":762,"height":12}},{"id":"f014fcc9-dc73-4914-a378-50912272ef29","block_type":"box","text":"The full extent of current or future risks related thereto is not possible to predict, and the Fund may not","page_number":141,"box":{"x":116,"y":444,"width":765,"height":12}},{"id":"d62e3b2b-4a3c-4033-8deb-c72656c02601","block_type":"box","text":"be able to anticipate, prevent, mitigate, or remediate all of the potential risks, challenges, or impacts of","page_number":141,"box":{"x":117,"y":459,"width":763,"height":12}},{"id":"e250ac2b-935c-4948-b7e0-97f845abaf74","block_type":"box","text":"such changes.","page_number":141,"box":{"x":116,"y":475,"width":113,"height":12}},{"id":"7fe20ecb-1901-4ce2-bc4b-2adbc4095262","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security","page_number":141,"box":{"x":116,"y":506,"width":750,"height":12}},{"id":"fea6b506-d9f7-46a3-8cb2-119520575624","block_type":"box","text":"and cybersecurity risk management policies and procedures, their methods of risk management may","page_number":141,"box":{"x":116,"y":521,"width":753,"height":12}},{"id":"d916c6b9-0ca5-4db2-9165-42b424f1e749","block_type":"box","text":"differ from those of the Fund in the setting of priorities, the personnel and resources available or the","page_number":141,"box":{"x":116,"y":537,"width":745,"height":12}},{"id":"43060b5b-1b34-4e95-ba57-16e95043914c","block_type":"box","text":"effectiveness of relevant controls. The Fund and its adviser seek to reduce these risks through","page_number":141,"box":{"x":116,"y":552,"width":706,"height":12}},{"id":"5681c42b-e32d-4647-b79e-d454cc1b79ef","block_type":"box","text":"controls, procedures and oversight, including establishing business continuity plans and risk","page_number":141,"box":{"x":116,"y":568,"width":687,"height":12}},{"id":"55ece8ba-1cb2-418c-b797-883f6e44a022","block_type":"box","text":"management systems. However, there are inherent limitations in such plans and systems, including","page_number":141,"box":{"x":117,"y":583,"width":744,"height":12}},{"id":"e88eac28-d081-4a6d-b754-a3c9c80da9be","block_type":"box","text":"the possibility that certain risks that may affect the Fund have not been identified or may emerge in the","page_number":141,"box":{"x":116,"y":599,"width":766,"height":12}},{"id":"a14760b0-d918-4095-978b-d397a1163b73","block_type":"box","text":"future; that such plans and systems may not completely eliminate the occurrence or mitigate the","page_number":141,"box":{"x":116,"y":614,"width":719,"height":12}},{"id":"7cbe52a7-9882-4e6d-86ac-d35f5f89bcd2","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that","page_number":141,"box":{"x":116,"y":630,"width":766,"height":12}},{"id":"09a06271-2f50-44ed-8c75-8384f1bd5b99","block_type":"box","text":"prevention and remediation efforts will not be successful or that incidents will go undetected. The Fund","page_number":141,"box":{"x":117,"y":645,"width":766,"height":12}},{"id":"99d2d58c-a824-4ad9-97d5-2eeba34dad1b","block_type":"box","text":"cannot control the systems, information security or other cybersecurity of the issuers in which it invests","page_number":141,"box":{"x":116,"y":661,"width":762,"height":12}},{"id":"22f64d85-3f0c-4bed-860d-0a6d0303bf98","block_type":"box","text":"or its service providers, counterparties, and other third parties whose activities affect the Fund.","page_number":141,"box":{"x":116,"y":676,"width":700,"height":12}},{"id":"65608321-b7a6-48bb-abe1-4767a58b0518","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and","page_number":141,"box":{"x":117,"y":707,"width":735,"height":12}},{"id":"6ebc2d3d-ad3c-4c38-aa96-663210e7e14e","block_type":"box","text":"may vary considerably across jurisdictions. Regulators continue to develop new rules and standards","page_number":141,"box":{"x":117,"y":723,"width":742,"height":12}},{"id":"f4625e1b-c39b-4884-9e98-e2bbccbd0386","block_type":"box","text":"related to cybersecurity and data protection. Compliance with evolving regulations can be demanding","page_number":141,"box":{"x":117,"y":738,"width":750,"height":12}},{"id":"9cc2813b-5f49-4571-a6cf-f8949f053fc0","block_type":"box","text":"and costly, requiring substantial resources to monitor and implement required changes.","page_number":141,"box":{"x":116,"y":754,"width":647,"height":12}},{"id":"64c32b8f-9258-4ced-8636-5d6abb05365e","block_type":"box","text":"Participation Notes.","page_number":141,"box":{"x":116,"y":785,"width":157,"height":12}},{"id":"97c99db9-308d-42db-9575-11fecaeb2eb8","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that","page_number":141,"box":{"x":279,"y":785,"width":586,"height":12}},{"id":"283400d3-aa1e-44c3-89ec-4e1c964cf83f","block_type":"box","text":"entitle the Fund to a return measured by the change in value of an identified underlying security or","page_number":141,"box":{"x":116,"y":800,"width":729,"height":12}},{"id":"23f887cd-447a-4019-86c6-78cf2a4bd0ab","block_type":"box","text":"basket of securities (collectively, the “underlying security”). Participation notes are typically used when","page_number":141,"box":{"x":117,"y":816,"width":755,"height":12}},{"id":"47147bb0-57bd-462c-92e4-1aa9d59ab6bb","block_type":"box","text":"a direct investment in the underlying security is restricted due to country-specific regulations.","page_number":141,"box":{"x":116,"y":831,"width":692,"height":12}},{"id":"6be62ff2-01fa-426b-8f9b-0c0f8cd1d44e","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note","page_number":141,"box":{"x":116,"y":862,"width":766,"height":12}},{"id":"96e854a9-2f8a-4b00-aaca-07bacf5cf4a8","block_type":"box","text":"is not the same as investment in the constituent shares of the company. A participation note represents","page_number":141,"box":{"x":117,"y":878,"width":771,"height":12}},{"id":"f40c75ec-5790-49e3-a839-4b3fe765af3a","block_type":"box","text":"II-82","page_number":141,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"0284aba7-7ed5-485e-9655-85b62bee17ad","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":141,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"bc7138f2-6c2f-4f12-a5c2-278003c0f749","block_type":"box","text":"only an obligation of the issuer to provide the Fund the economic performance equivalent to holding","page_number":142,"box":{"x":116,"y":87,"width":744,"height":12}},{"id":"105d5ea2-0f40-4c4c-acd0-9b5426756ced","block_type":"box","text":"shares of an underlying security. A participation note does not provide any beneficial or equitable","page_number":142,"box":{"x":116,"y":102,"width":725,"height":13}},{"id":"96b44e4f-829a-4aa1-81e2-3d73d884ef1e","block_type":"box","text":"entitlement or interest in the relevant underlying security. In other words, shares of the underlying","page_number":142,"box":{"x":116,"y":118,"width":727,"height":12}},{"id":"d3092b81-f0a7-4018-8174-edc5a4943136","block_type":"box","text":"security are not in any way owned by the Fund. However, each participation note synthetically","page_number":142,"box":{"x":116,"y":134,"width":702,"height":12}},{"id":"0818d376-d0ae-4670-a986-cf50afd944bd","block_type":"box","text":"replicates the economic benefit of holding shares in the underlying security. 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A Fund attempts to mitigate that risk by purchasing only from issuers","page_number":142,"box":{"x":117,"y":196,"width":689,"height":12}},{"id":"2afaf305-e3ce-4c92-8817-101fd3a70977","block_type":"box","text":"determined to be creditworthy.","page_number":142,"box":{"x":116,"y":211,"width":231,"height":12}},{"id":"5d531518-ab6e-45a3-93fe-c61d14d1db0d","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge","page_number":142,"box":{"x":116,"y":242,"width":755,"height":12}},{"id":"2f8985f8-4bd4-43bb-9909-7b94575ee1d2","block_type":"box","text":"its obligation. A Fund may, but is not required to, purchase credit protection against the default of the","page_number":142,"box":{"x":117,"y":258,"width":752,"height":12}},{"id":"7ac06820-350e-4395-9bc0-3d60a026d1a5","block_type":"box","text":"issuer. When the participation note expires or a Fund exercises the participation note and closes its","page_number":142,"box":{"x":117,"y":273,"width":742,"height":12}},{"id":"c6fce5b6-2779-4a8e-97e5-8e9e396fc04d","block_type":"box","text":"position, the Fund receives a payment that is based upon the then-current value of the underlying","page_number":142,"box":{"x":117,"y":289,"width":728,"height":12}},{"id":"3ca2d136-cdd0-4c00-97f1-60ca696603f2","block_type":"box","text":"security converted into U.S. dollars (less transaction costs). The price, performance and liquidity of a","page_number":142,"box":{"x":116,"y":304,"width":751,"height":12}},{"id":"a56e617b-e348-46a1-8314-f00c8bf95697","block_type":"box","text":"participation note are all linked directly to the underlying security. A Fund’s ability to redeem or","page_number":142,"box":{"x":117,"y":320,"width":704,"height":12}},{"id":"76975366-3700-4c69-a196-3e32c65c1268","block_type":"box","text":"exercise a participation note generally is dependent on the liquidity in the local trading market for the","page_number":142,"box":{"x":116,"y":335,"width":750,"height":12}},{"id":"f825d23a-9f59-4b33-bc3a-f589fe69583e","block_type":"box","text":"security underlying the participation note.","page_number":142,"box":{"x":116,"y":351,"width":310,"height":12}},{"id":"a58bc086-b207-4987-8d7d-3047c92e5beb","block_type":"box","text":"Portfolio Turnover Rates.","page_number":142,"box":{"x":116,"y":382,"width":201,"height":9}},{"id":"0113bfa9-4b97-47f9-9904-ccab17457c35","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale","page_number":142,"box":{"x":318,"y":382,"width":569,"height":12}},{"id":"0e8d9696-47fd-4f53-9724-482b56e20469","block_type":"box","text":"or purchase when the Manager believes investment considerations warrant such sale or purchase.","page_number":142,"box":{"x":116,"y":397,"width":738,"height":12}},{"id":"4e5067e3-3438-4848-b399-d2155d171f5b","block_type":"box","text":"Although certain Funds will use an approach to investing that is largely a passive, indexing approach,","page_number":142,"box":{"x":116,"y":413,"width":756,"height":12}},{"id":"1ccafad5-d5df-4fb5-94ba-10713916c532","block_type":"box","text":"such Funds may engage in a substantial number of portfolio transactions. With respect to these Funds,","page_number":142,"box":{"x":116,"y":428,"width":770,"height":12}},{"id":"e6a113ba-d4d9-45f8-b25e-3126e738a6a9","block_type":"box","text":"the rate of portfolio turnover will be a limiting factor when the Manager considers whether to purchase","page_number":142,"box":{"x":116,"y":444,"width":759,"height":12}},{"id":"2629e4c0-b52f-43fa-a479-f381c90a9a83","block_type":"box","text":"or sell securities for a Fund only to the extent that the Manager will consider the impact of transaction","page_number":142,"box":{"x":116,"y":459,"width":756,"height":12}},{"id":"7bf2312a-a712-4ce0-8ab7-1dcdf2d19c4a","block_type":"box","text":"costs on a Fund’s tracking error. Portfolio turnover may vary greatly from year to year as well as within","page_number":142,"box":{"x":116,"y":475,"width":765,"height":12}},{"id":"8b6021b3-2547-461c-bb3f-70f76e40ec1e","block_type":"box","text":"a particular year. High portfolio turnover (","page_number":142,"box":{"x":116,"y":490,"width":305,"height":12}},{"id":"5b65c4a5-d5cc-45bf-abc2-56e530231cf8","block_type":"box","text":"i.e.","page_number":142,"box":{"x":422,"y":490,"width":21,"height":10}},{"id":"c8afae1b-25a4-4048-8aec-a0b2100df072","block_type":"box","text":", 100% or more) may result in increased transaction costs","page_number":142,"box":{"x":446,"y":490,"width":433,"height":12}},{"id":"6f6a8623-5032-4d6a-8ab7-0704f825e803","block_type":"box","text":"to a Fund, including brokerage commissions, dealer mark-ups and other transaction costs on the sale","page_number":142,"box":{"x":116,"y":506,"width":759,"height":12}},{"id":"d1870fa7-a56e-41b7-8d1c-c0f3ba19fe0b","block_type":"box","text":"of the securities and reinvestment in other securities. The sale of a Fund’s securities may result in the","page_number":142,"box":{"x":116,"y":521,"width":759,"height":12}},{"id":"5c7b76e4-e135-42c2-9ec0-9180f907cf7c","block_type":"box","text":"recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be short","page_number":142,"box":{"x":117,"y":537,"width":743,"height":12}},{"id":"3e9d463c-f247-43eb-9767-fb2cd6f9641c","block_type":"box","text":"term capital gain or loss. These effects of higher than normal portfolio turnover may adversely affect a","page_number":142,"box":{"x":116,"y":552,"width":761,"height":12}},{"id":"a090debc-369b-46b8-b015-b64609a60949","block_type":"box","text":"Fund’s performance.","page_number":142,"box":{"x":117,"y":568,"width":158,"height":12}},{"id":"926e47eb-40eb-43df-9308-e7a0aac81758","block_type":"box","text":"Preferred Stock.","page_number":142,"box":{"x":116,"y":599,"width":126,"height":9}},{"id":"d031d24d-4a4e-4c81-834b-22692862af00","block_type":"box","text":"Certain Funds may invest in preferred sto","page_number":142,"box":{"x":243,"y":599,"width":306,"height":12}},{"id":"dacb07a6-890a-4789-9107-f8d33460160f","block_type":"box","text":"cks. Preferred stock has a preference over","page_number":142,"box":{"x":550,"y":599,"width":314,"height":12}},{"id":"973922a8-005d-4cd9-bb46-e3fe2fe4c60d","block_type":"box","text":"common stock in liquidation (and generally dividends","page_number":142,"box":{"x":116,"y":614,"width":384,"height":12}},{"id":"591e4555-4e63-4111-bbe6-0e52f3fdde50","block_type":"box","text":"as well) but is subordinated to bond holders and","page_number":142,"box":{"x":501,"y":614,"width":358,"height":12}},{"id":"bc7fa6a1-db24-481e-811c-1dd1f10de942","block_type":"box","text":"other creditors in all respects. As a general rule, t","page_number":142,"box":{"x":116,"y":630,"width":357,"height":12}},{"id":"d82a6d13-3460-4ca5-ae9e-ab2f1c92247e","block_type":"box","text":"he market value of preferred stock with a fixed dividend","page_number":142,"box":{"x":474,"y":630,"width":406,"height":12}},{"id":"d3620483-4e7f-4ced-bbb0-cfa8319fd78e","block_type":"box","text":"rate and no conversion element varies inversely with","page_number":142,"box":{"x":117,"y":645,"width":386,"height":12}},{"id":"2cb82ddf-5be4-482e-a5db-bae31caa77f2","block_type":"box","text":"interest rates and perceived credit risk, while the","page_number":142,"box":{"x":504,"y":645,"width":355,"height":12}},{"id":"ee7b91d7-7467-4146-9416-a57b9e334bfe","block_type":"box","text":"market price of convertible preferred stock generally","page_number":142,"box":{"x":117,"y":661,"width":377,"height":12}},{"id":"8f929212-ac02-48c3-ad39-70e00b08d6a6","block_type":"box","text":"also reflects some element of conversion value.","page_number":142,"box":{"x":499,"y":661,"width":345,"height":9}},{"id":"67a4991c-7766-4b50-8dfb-c0d13973f329","block_type":"box","text":"Because preferred stock is junior to debt securities","page_number":142,"box":{"x":117,"y":676,"width":367,"height":12}},{"id":"2e198fa7-daa9-4ff6-8025-4564631db41d","block_type":"box","text":"and other obligations of the issuer, deterioration in the","page_number":142,"box":{"x":489,"y":676,"width":391,"height":12}},{"id":"16e38b95-2bca-4c97-a533-ee3cd2be8d11","block_type":"box","text":"credit quality of the issuer will cause greater changes in","page_number":142,"box":{"x":116,"y":692,"width":402,"height":12}},{"id":"4b614b4d-f633-4f57-992e-c735924ba801","block_type":"box","text":"the value of a preferred stock than in a more","page_number":142,"box":{"x":523,"y":692,"width":323,"height":12}},{"id":"943b09d9-d848-4e5f-a842-be6d7cf0c9a9","block_type":"box","text":"senior debt security with similar stated yield characte","page_number":142,"box":{"x":116,"y":707,"width":383,"height":12}},{"id":"6a6e43e2-89a9-4fb0-9f42-a304c865a0d0","block_type":"box","text":"ristics. Unlike interest payments on debt securities,","page_number":142,"box":{"x":500,"y":707,"width":367,"height":12}},{"id":"91532699-7655-4a9e-b40e-eb96a0d8796a","block_type":"box","text":"preferred stock dividends are payable only if declared by","page_number":142,"box":{"x":117,"y":723,"width":410,"height":12}},{"id":"33d6e63e-032e-44db-bdd7-e23d7669da12","block_type":"box","text":"the issuer’s board of di","page_number":142,"box":{"x":532,"y":723,"width":164,"height":9}},{"id":"c0309b77-d48b-491f-bcf4-0c211b433db1","block_type":"box","text":"rectors. Preferred stock","page_number":142,"box":{"x":698,"y":723,"width":170,"height":9}},{"id":"89df4a0a-6990-44c6-99f1-9a4f7a21a4cd","block_type":"box","text":"also may be subject to optional or mandatory redemption provisions.","page_number":142,"box":{"x":116,"y":738,"width":496,"height":12}},{"id":"7b03757f-866f-4a5a-ac48-a2849fceeda1","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":142,"box":{"x":118,"y":769,"width":224,"height":12}},{"id":"b55ab0ad-7888-4e1f-b912-4d79e059415e","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment","page_number":142,"box":{"x":350,"y":769,"width":497,"height":12}},{"id":"7c54d318-8780-4472-b4a6-59f00daea6c3","block_type":"box","text":"funds that pay dividends that are exempt from regular U.S. federal income tax. Such funds in turn","page_number":142,"box":{"x":116,"y":785,"width":722,"height":12}},{"id":"b9f0a6b3-e620-4300-b9c7-1699bd5e6630","block_type":"box","text":"invest in municipal bonds and other assets that pay interest or make distributions that are exempt from","page_number":142,"box":{"x":117,"y":800,"width":759,"height":12}},{"id":"22e6505d-77ab-4e77-9808-a9f3407bd95b","block_type":"box","text":"regular U.S. federal income tax, such as revenue bonds issued by state or local agencies to fund the","page_number":142,"box":{"x":117,"y":816,"width":746,"height":12}},{"id":"e54dbb54-74bc-486f-8ed8-69ed2801db19","block_type":"box","text":"development of low-income, multi-family housing. Investment in such tax-exempt preferred shares","page_number":142,"box":{"x":116,"y":831,"width":733,"height":12}},{"id":"c15de0a2-ffaf-40f0-b6b5-5af4b1482648","block_type":"box","text":"involves many of the same issues as investing in other investment companies. These investments also","page_number":142,"box":{"x":117,"y":847,"width":768,"height":12}},{"id":"20eecb9c-a528-4743-9603-e1481b9067e8","block_type":"box","text":"have additional risks, including illiquid investments risk, the absence of regulation governing","page_number":142,"box":{"x":117,"y":862,"width":685,"height":12}},{"id":"77b4771f-929a-4f74-b866-d15048fa5edd","block_type":"box","text":"investment practices, capital structure and leverage, affiliated transactions and other matters, and","page_number":142,"box":{"x":117,"y":878,"width":729,"height":12}},{"id":"e1a9d11b-2ca2-4d29-8c19-b09eb19f37dc","block_type":"box","text":"II-83","page_number":142,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"e1f42d36-499e-4be8-959a-dda80d08e1b1","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":142,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3a55e9a0-fe20-4f35-b99c-40107668a290","block_type":"box","text":"concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat","page_number":143,"box":{"x":116,"y":87,"width":740,"height":12}},{"id":"43e17b48-21f3-4a7a-9c07-c4545d1c5591","block_type":"box","text":"investments in tax-exempt preferred shares as investments in municipal bonds.","page_number":143,"box":{"x":117,"y":102,"width":593,"height":12}},{"id":"9223b016-1236-448a-8eb2-6d476e9a1887","block_type":"box","text":"Trust Preferred Securities.","page_number":143,"box":{"x":118,"y":134,"width":193,"height":9}},{"id":"ca228243-98e6-45d0-ada5-ec847d5e035a","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred","page_number":143,"box":{"x":312,"y":134,"width":525,"height":12}},{"id":"e0b1f81c-5251-4be7-a2dd-a949c640abc5","block_type":"box","text":"securities are typically issued by corporations, generally in the form of interest bearing notes with","page_number":143,"box":{"x":116,"y":149,"width":724,"height":12}},{"id":"31a71544-4902-4a50-8439-65fd6ce69a71","block_type":"box","text":"preferred securities characteristics, or by an affiliated business trust of a corporation, generally in the","page_number":143,"box":{"x":117,"y":165,"width":751,"height":12}},{"id":"d5893903-72b6-4f0e-b4b4-655677344cea","block_type":"box","text":"form of beneficial interests in subordinated debentures or similarly structured securities. The trust","page_number":143,"box":{"x":116,"y":180,"width":726,"height":12}},{"id":"1ace8354-5b1c-4127-bfa8-b633ef406e81","block_type":"box","text":"preferred securities market consists of both fixed and adjustable coupon rate securities that are either","page_number":143,"box":{"x":117,"y":196,"width":758,"height":12}},{"id":"b715df9c-7522-4cac-ba70-10479b978e8b","block_type":"box","text":"perpetual in nature or have stated maturity dates.","page_number":143,"box":{"x":117,"y":211,"width":370,"height":12}},{"id":"af6ed055-fb49-4fac-a894-218ee4be09f0","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit","page_number":143,"box":{"x":116,"y":242,"width":748,"height":12}},{"id":"1815b5c7-b26f-4054-ac85-64eb9c98443b","block_type":"box","text":"from a guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition,","page_number":143,"box":{"x":116,"y":258,"width":771,"height":12}},{"id":"42910628-aeb4-42c0-add7-6028a85763a1","block_type":"box","text":"trust preferred securities typically permit an issuer to defer the payment of income for five years or","page_number":143,"box":{"x":116,"y":273,"width":733,"height":12}},{"id":"69a3734e-9df6-4d3e-82d3-60a044359489","block_type":"box","text":"more without triggering an event of default. Because of their subordinated position in the capital","page_number":143,"box":{"x":117,"y":289,"width":713,"height":12}},{"id":"ab4b7f67-715f-4bd5-966d-83d48d9db96e","block_type":"box","text":"structure of an issuer, the ability to defer payments for extended periods of time without default","page_number":143,"box":{"x":116,"y":304,"width":708,"height":12}},{"id":"264f3e31-3e63-4711-a334-d569f9e42763","block_type":"box","text":"consequences to the issuer, and certain other features (such as restrictions on common dividend","page_number":143,"box":{"x":116,"y":320,"width":725,"height":12}},{"id":"5969975b-b08c-4234-bf05-dd60e7681c5b","block_type":"box","text":"payments by the issuer or ultimate guarantor when full cumulative payments on the trust preferred","page_number":143,"box":{"x":117,"y":335,"width":733,"height":12}},{"id":"d2d33377-07e7-4fba-a4c8-79373fbd2d48","block_type":"box","text":"securities have not been made), these trust preferred securities are often treated as close substitutes","page_number":143,"box":{"x":116,"y":351,"width":756,"height":12}},{"id":"61fbce6c-bc37-4fda-8d79-d67370e07fe1","block_type":"box","text":"for traditional preferred securities, both by issuers and investors.","page_number":143,"box":{"x":116,"y":366,"width":483,"height":12}},{"id":"caf09dcd-8c56-42f3-af47-e54f04d91c96","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":143,"box":{"x":116,"y":397,"width":740,"height":12}},{"id":"d665c4e8-6a57-4eb3-bef8-b300628e439e","block_type":"box","text":"®","page_number":143,"box":{"x":857,"y":396,"width":9,"height":7}},{"id":"4f0cb711-615d-4a4c-935e-f2d42e7d5be7","block_type":"box","text":"”);","page_number":143,"box":{"x":867,"y":397,"width":20,"height":12}},{"id":"dd6bc790-0d56-4300-823a-c8b3359a5b05","block_type":"box","text":"monthly income preferred securities (“MIPS","page_number":143,"box":{"x":117,"y":413,"width":322,"height":12}},{"id":"5ec9fcac-7e82-436a-8345-e653defc94c7","block_type":"box","text":"®","page_number":143,"box":{"x":439,"y":412,"width":10,"height":7}},{"id":"c756873e-8c09-4cbd-93e2-0f937be615b7","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":143,"box":{"x":449,"y":413,"width":330,"height":12}},{"id":"fffba4c4-f43d-4609-b9c1-ec04b5d81f57","block_type":"box","text":"®","page_number":143,"box":{"x":780,"y":412,"width":9,"height":7}},{"id":"addaeae3-8646-4c42-ac8e-1c560365d2d5","block_type":"box","text":"” ); quarterly","page_number":143,"box":{"x":790,"y":413,"width":95,"height":12}},{"id":"b0123b37-53d0-4507-ab08-ce286a3efed3","block_type":"box","text":"income debt securities (“QUIDS","page_number":143,"box":{"x":117,"y":428,"width":234,"height":12}},{"id":"c6d8cdff-09fb-4de2-9efa-7b67d010de1d","block_type":"box","text":"®","page_number":143,"box":{"x":352,"y":427,"width":10,"height":7}},{"id":"8a41f7ca-c288-4f2d-a07d-b072eed5d73a","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":143,"box":{"x":362,"y":428,"width":361,"height":12}},{"id":"7c8c772d-de58-469b-80cd-3ec8cb2ccf5e","block_type":"box","text":"SM","page_number":143,"box":{"x":724,"y":428,"width":16,"height":6}},{"id":"c4d1d324-222d-4d0c-8d57-eaf09c099123","block_type":"box","text":"”); corporate trust","page_number":143,"box":{"x":741,"y":428,"width":133,"height":12}},{"id":"9c4e999e-c6f9-469a-b474-340eaf0edcad","block_type":"box","text":"securities (“CORTS","page_number":143,"box":{"x":116,"y":444,"width":145,"height":12}},{"id":"17504bdd-6f02-4fff-baf7-3b2d3d5eb8e2","block_type":"box","text":"®","page_number":143,"box":{"x":262,"y":443,"width":9,"height":7}},{"id":"8ce57061-7559-4589-8207-a893a1e32c78","block_type":"box","text":"”); public income notes (“PINES","page_number":143,"box":{"x":271,"y":444,"width":235,"height":12}},{"id":"8f4ba600-aadd-45e6-a47e-bf1ec839fdd9","block_type":"box","text":"®","page_number":143,"box":{"x":507,"y":443,"width":9,"height":7}},{"id":"64837544-791a-4c96-a545-12af554ea3d6","block_type":"box","text":"”); and other trust preferred securities.","page_number":143,"box":{"x":517,"y":444,"width":287,"height":12}},{"id":"f1302d7b-a7a8-464d-b3ed-e61ceb94d8c8","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in","page_number":143,"box":{"x":116,"y":475,"width":766,"height":12}},{"id":"1e7fae2f-dcb0-4f27-92e3-aae0bccbcd0f","block_type":"box","text":"nature. In certain instances, a final maturity date may be extended and/or the final payment of principal","page_number":143,"box":{"x":117,"y":490,"width":767,"height":12}},{"id":"533a3047-c6cf-431d-a4dd-abda3a599515","block_type":"box","text":"may be deferred at the issuer’s option for a specified time without default. No redemption can typically","page_number":143,"box":{"x":117,"y":506,"width":760,"height":12}},{"id":"03866560-c3a4-4e26-a142-4fb4e45b8212","block_type":"box","text":"take place unless all cumulative payment obligations have been met, although issuers may be able to","page_number":143,"box":{"x":116,"y":521,"width":758,"height":12}},{"id":"690f5035-f812-4ad4-8e5d-cf0e8ff05bf5","block_type":"box","text":"engage in open-market repurchases without regard to whether all payments have been paid.","page_number":143,"box":{"x":116,"y":537,"width":693,"height":12}},{"id":"681a7ce8-2adf-46b7-b2ec-0709a42a5358","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by","page_number":143,"box":{"x":117,"y":568,"width":737,"height":12}},{"id":"640dd2a6-d704-4584-b1c7-596d25bdae62","block_type":"box","text":"operating companies and are not a direct obligation of an operating company. At the time the trust or","page_number":143,"box":{"x":116,"y":583,"width":752,"height":12}},{"id":"2ce84d00-11ef-415d-b8a1-07e80e131f91","block_type":"box","text":"special purpose entity sells such preferred securities to investors, it purchases debt of the operating","page_number":143,"box":{"x":116,"y":599,"width":745,"height":12}},{"id":"cdc03b03-158b-4ecb-9a0b-c2bc25f2a38c","block_type":"box","text":"company (with terms comparable to those of the trust or special purpose entity securities), which","page_number":143,"box":{"x":116,"y":614,"width":722,"height":12}},{"id":"f0fbb175-e2e3-4693-9737-81416c1130cb","block_type":"box","text":"enables the operating company to deduct for tax purposes the interest paid on the debt held by the","page_number":143,"box":{"x":116,"y":630,"width":739,"height":12}},{"id":"17b43f63-4e51-4eec-9991-ec27c7baa2b3","block_type":"box","text":"trust or special purpose entity. The trust or special purpose entity is generally required to be treated as","page_number":143,"box":{"x":116,"y":645,"width":765,"height":12}},{"id":"03b25638-dacf-4f8d-b027-e0d30439a0fc","block_type":"box","text":"transparent for U.S. federal income tax purposes such that the holders of the trust preferred securities","page_number":143,"box":{"x":116,"y":661,"width":757,"height":12}},{"id":"40302852-baec-4c04-accc-b621bea29aad","block_type":"box","text":"are treated as owning beneficial interests in the underlying debt of the operating company. Accordingly,","page_number":143,"box":{"x":116,"y":676,"width":765,"height":12}},{"id":"d2b9981a-7269-424f-a2c7-e94a836f9565","block_type":"box","text":"payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":143,"box":{"x":117,"y":692,"width":757,"height":12}},{"id":"c8e1c310-8f74-46ec-a693-308886acfccf","block_type":"box","text":"income tax purposes. The trust or special purpose entity in turn would be a holder of the operating","page_number":143,"box":{"x":117,"y":707,"width":727,"height":12}},{"id":"a51f57cd-59ef-49b3-ae95-561ede2a9c5d","block_type":"box","text":"company’s debt and would have priority with respect to the operating company’s earnings and profits","page_number":143,"box":{"x":116,"y":723,"width":748,"height":12}},{"id":"31fc7b09-89c3-4395-81fa-d85c472263af","block_type":"box","text":"over the operating company’s common shareholders but would typically be subordinated to other","page_number":143,"box":{"x":116,"y":738,"width":720,"height":12}},{"id":"153731cb-0165-46f7-bd22-56dde1be3203","block_type":"box","text":"classes of the operating company’s debt. Typically, a preferred share has a rating that is slightly below","page_number":143,"box":{"x":116,"y":754,"width":760,"height":12}},{"id":"3828e070-9675-47b0-8b9a-b00471f5110a","block_type":"box","text":"that of its corresponding operating company’s senior debt securities.","page_number":143,"box":{"x":116,"y":769,"width":506,"height":12}},{"id":"2824cf5c-7810-4807-8c63-7d4b447ba0bd","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":143,"box":{"x":116,"y":800,"width":324,"height":12}},{"id":"a29283c2-ada6-460e-bdd0-e71b82882a25","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in","page_number":143,"box":{"x":448,"y":800,"width":417,"height":12}},{"id":"53589c45-ed01-4184-ba65-3feb56df32a4","block_type":"box","text":"shares of REITs. REITs possess certain risks which differ from an investment in common stocks.","page_number":143,"box":{"x":116,"y":816,"width":718,"height":12}},{"id":"7580bb69-a9dc-4fb7-ae03-d032cdeff831","block_type":"box","text":"REITs are financial vehicles that pool investor’s capital to purchase or finance real estate. REITs may","page_number":143,"box":{"x":117,"y":831,"width":756,"height":12}},{"id":"9a302d17-090d-4d69-ace4-fe0aebc4f9c3","block_type":"box","text":"concentrate their investments in specific geographic areas or in specific property types,","page_number":143,"box":{"x":116,"y":847,"width":652,"height":12}},{"id":"b13ff4f5-c909-4684-8932-f1dc9bc42243","block_type":"box","text":"i.e.","page_number":143,"box":{"x":768,"y":847,"width":21,"height":9}},{"id":"5211f713-e46e-47d9-80d6-e5f10c3da0fb","block_type":"box","text":", hotels,","page_number":143,"box":{"x":792,"y":847,"width":62,"height":11}},{"id":"f15a97e2-8a30-47c9-b3ea-7522a8c4e6a8","block_type":"box","text":"shopping malls, residential complexes and office buildings.","page_number":143,"box":{"x":116,"y":862,"width":441,"height":12}},{"id":"877e8000-55b7-444a-bc6f-2306b053b585","block_type":"box","text":"II-84","page_number":143,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"387c959e-d7de-4f15-9350-e11559165849","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":143,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"102eec49-e6e0-45e6-b82e-664d1b53a9e5","block_type":"box","text":"REITs are subject to management fees and other expenses, and so a Fund that invests in REITs will","page_number":144,"box":{"x":117,"y":87,"width":752,"height":12}},{"id":"488b19c4-a8a8-44c0-b2a5-f7a5f051fcda","block_type":"box","text":"bear its proportionate share of the costs of the REITs’ operations. There are three general categories","page_number":144,"box":{"x":117,"y":102,"width":754,"height":13}},{"id":"181f56e8-0066-49bd-b6fa-5325136d6d15","block_type":"box","text":"of REITs: Equity REITs, Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee","page_number":144,"box":{"x":116,"y":118,"width":763,"height":12}},{"id":"b2e742f1-0990-4faa-a18c-ec86c510eb3e","block_type":"box","text":"ownership or leasehold ownership of real property, which derive most of their income from rents.","page_number":144,"box":{"x":116,"y":134,"width":721,"height":12}},{"id":"93e96951-9948-4197-bb1f-792e36a5c852","block_type":"box","text":"Mortgage REITs invest mostly in mortgages on real estate, which may secure construction,","page_number":144,"box":{"x":117,"y":149,"width":681,"height":12}},{"id":"454756fe-bbe0-40de-a4ab-ab0271077cdc","block_type":"box","text":"development or long-term loans; the main source of their income is mortgage interest payments.","page_number":144,"box":{"x":116,"y":165,"width":720,"height":12}},{"id":"0855a795-c386-4bad-99e3-7e6f00dc73f3","block_type":"box","text":"Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":144,"box":{"x":117,"y":180,"width":541,"height":12}},{"id":"66cc486b-14c9-4b6b-96db-ab22bbdabf74","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in","page_number":144,"box":{"x":117,"y":211,"width":749,"height":12}},{"id":"ab948833-ddb3-47f7-82a6-5ef2fc396622","block_type":"box","text":"the real estate industry in general. The market value of REIT shares and the ability of the REITs to","page_number":144,"box":{"x":116,"y":227,"width":735,"height":12}},{"id":"b2eaf2e3-1a38-44f6-ad5e-5c8c4df66428","block_type":"box","text":"distribute income may be adversely affected by several factors, including rising interest rates, changes","page_number":144,"box":{"x":116,"y":242,"width":765,"height":12}},{"id":"99a37777-9681-48e1-9aa8-a5559ab85662","block_type":"box","text":"in the national, state and local economic climate and real estate conditions, occupancy and rental","page_number":144,"box":{"x":117,"y":258,"width":727,"height":12}},{"id":"025af73f-f97a-4657-bc8c-390824fe2ac4","block_type":"box","text":"rates, perceptions of prospective tenants of the safety, convenience and attractiveness of the","page_number":144,"box":{"x":117,"y":273,"width":695,"height":12}},{"id":"f02531fa-3ae4-4eeb-8618-42998632ce10","block_type":"box","text":"properties, the ability of the owners to provide adequate management, maintenance and insurance, the","page_number":144,"box":{"x":117,"y":289,"width":770,"height":12}},{"id":"aa8065a4-9fc4-44f1-8095-9fc77d4c16c5","block_type":"box","text":"cost of complying with the Americans with Disabilities Act, increased competition from new properties,","page_number":144,"box":{"x":116,"y":304,"width":761,"height":12}},{"id":"81cde8c7-51da-4f90-9c5c-3be84bdc6496","block_type":"box","text":"the impact of present or future environmental legislation and compliance with environmental laws,","page_number":144,"box":{"x":116,"y":320,"width":729,"height":12}},{"id":"dabb21a3-cb1e-4c12-8b00-0df06f2400ed","block_type":"box","text":"failing to maintain their exemptions from registration under the Investment Company Act, changes in","page_number":144,"box":{"x":116,"y":335,"width":749,"height":12}},{"id":"d5ee2eaa-3fa8-4681-85aa-e253bdf66b93","block_type":"box","text":"real estate taxes and other operating expenses, adverse changes in governmental rules and fiscal","page_number":144,"box":{"x":117,"y":351,"width":733,"height":12}},{"id":"7c344296-7c9d-481b-a337-b16f139f1d1b","block_type":"box","text":"policies, adverse changes in zoning laws and other factors beyond the control of the issuers of the","page_number":144,"box":{"x":117,"y":366,"width":733,"height":12}},{"id":"24d6d6f6-5493-4e0c-b0c1-cf89ce4dad06","block_type":"box","text":"REITs. To the extent that assets underlying a REIT are concentrated geographically, by property type,","page_number":144,"box":{"x":117,"y":382,"width":762,"height":12}},{"id":"0c479ff1-fbd2-4489-9b1b-ee6e5cd0c41c","block_type":"box","text":"or in certain other respects, these risks may be heightened.","page_number":144,"box":{"x":116,"y":397,"width":446,"height":12}},{"id":"70618c9a-8ad4-4817-8bec-8e3671c91c38","block_type":"box","text":"In addition, distributions received by a Fund from REITs may consist of dividends, capital gains and/or","page_number":144,"box":{"x":117,"y":428,"width":761,"height":12}},{"id":"93c632f8-544a-4901-9162-342e5c1aee00","block_type":"box","text":"return of capital. As REITs generally pay a higher rate of dividends (on a pre-tax basis) than operating","page_number":144,"box":{"x":117,"y":444,"width":760,"height":12}},{"id":"c9afd736-2463-4b0a-8736-a56a3b175ee2","block_type":"box","text":"companies, to the extent application of the Fund’s investment strategy results in the Fund investing in","page_number":144,"box":{"x":116,"y":459,"width":758,"height":12}},{"id":"ae7ccc75-ad7f-43ae-983a-8a3a69edca3b","block_type":"box","text":"REIT shares, the percentage of the Fund’s dividend income received from REIT shares will likely","page_number":144,"box":{"x":117,"y":475,"width":722,"height":12}},{"id":"075e16f8-cafe-4c66-91fa-ed7eb124fb93","block_type":"box","text":"exceed the percentage of the Fund’s portfolio which is comprised of REIT shares. Ordinary REIT","page_number":144,"box":{"x":116,"y":490,"width":723,"height":12}},{"id":"ce5b8d66-1ac0-49e8-9bc2-ffb4d5ead1e9","block_type":"box","text":"dividends received by the Fund and distributed to the Fund’s shareholders will generally be taxable as","page_number":144,"box":{"x":116,"y":506,"width":762,"height":12}},{"id":"e1827df0-fe11-4eaf-bc21-4bd4bfb48f90","block_type":"box","text":"ordinary income and will not constitute “qualified dividend income.” However, a non-corporate taxpayer","page_number":144,"box":{"x":116,"y":521,"width":768,"height":12}},{"id":"0c950282-b8a9-4189-9f60-91f3ad59822f","block_type":"box","text":"who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for ordinary","page_number":144,"box":{"x":116,"y":537,"width":757,"height":12}},{"id":"6983158a-3198-4465-addb-5e0c4b4000b6","block_type":"box","text":"REIT dividends, and a regulated investment company may report dividends as eligible for this","page_number":144,"box":{"x":117,"y":552,"width":698,"height":12}},{"id":"1d620af3-036f-498a-95c2-ca9cd7fc6bbe","block_type":"box","text":"deduction to the extent the regulated investment company’s income is derived from ordinary REIT","page_number":144,"box":{"x":116,"y":568,"width":731,"height":12}},{"id":"6b04ec1f-5229-47c7-b157-cf8d8e05cec9","block_type":"box","text":"dividends (reduced by allocable regulated investment company expenses). A shareholder may treat","page_number":144,"box":{"x":116,"y":583,"width":745,"height":12}},{"id":"cda9f11a-cd5a-4bda-a17e-c5cb5c08a89a","block_type":"box","text":"the dividends as such provided the regulated investment company and the shareholder satisfy","page_number":144,"box":{"x":116,"y":599,"width":704,"height":12}},{"id":"489ad699-9a04-47df-8859-e86021876e77","block_type":"box","text":"applicable holding period requirements.","page_number":144,"box":{"x":116,"y":614,"width":298,"height":12}},{"id":"49aba1bb-650e-4da2-977b-7eeb11a8f9d1","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may","page_number":144,"box":{"x":117,"y":645,"width":728,"height":12}},{"id":"5be931e2-0f9c-4425-90c6-2334c80727e9","block_type":"box","text":"cause REIT investors to demand a higher annual yield, which may, in turn, cause a decline in the","page_number":144,"box":{"x":116,"y":661,"width":720,"height":12}},{"id":"a297dfe6-da86-49fb-add1-d04d2168578c","block_type":"box","text":"market price of the equity securities issued by a REIT. Rising interest rates also generally increase the","page_number":144,"box":{"x":117,"y":676,"width":759,"height":12}},{"id":"fa93fee8-fc2d-44df-8de4-89cde000167a","block_type":"box","text":"costs of obtaining financing, which could cause the value of a Fund’s REIT investments to decline.","page_number":144,"box":{"x":116,"y":692,"width":728,"height":12}},{"id":"9475be96-3458-43a0-a94e-aab608f368a8","block_type":"box","text":"During periods when interest rates are declining, mortgages are often refinanced. Refinancing may","page_number":144,"box":{"x":117,"y":707,"width":733,"height":12}},{"id":"84cb8bbe-fc33-4119-9aab-ea33a1002cbc","block_type":"box","text":"reduce the yield on investments in mortgage REITs. In addition, since REITs depend on payment","page_number":144,"box":{"x":117,"y":723,"width":721,"height":12}},{"id":"ccbf66db-3298-4da0-b4bf-fe4897f91d1c","block_type":"box","text":"under their mortgage loans and leases to generate cash to make distributions to their shareholders,","page_number":144,"box":{"x":117,"y":738,"width":737,"height":12}},{"id":"ea125ce4-fec9-4b62-88c7-dc6b029d3d9a","block_type":"box","text":"investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":144,"box":{"x":117,"y":754,"width":706,"height":12}},{"id":"d6007cb6-2201-458a-a923-8651cbb6f8f8","block_type":"box","text":"Investing in certain REITs, which often have small mark","page_number":144,"box":{"x":117,"y":785,"width":403,"height":12}},{"id":"701874e5-6991-4383-91b9-2c36c3c6022c","block_type":"box","text":"et capitalizations, may also involve the same risks","page_number":144,"box":{"x":521,"y":785,"width":361,"height":12}},{"id":"ed4ef6e2-b7c4-459c-9e56-6249c2823c4b","block_type":"box","text":"as investing in other small capitalization compani","page_number":144,"box":{"x":116,"y":800,"width":354,"height":12}},{"id":"ea34b4c6-08b1-4c0c-a20b-c320f866c085","block_type":"box","text":"es. REITs may have limited financial resources and their","page_number":144,"box":{"x":472,"y":800,"width":410,"height":12}},{"id":"df69ee77-9108-4978-851d-1f75ba38819f","block_type":"box","text":"securities may trade less frequently and in limited volu","page_number":144,"box":{"x":116,"y":816,"width":393,"height":12}},{"id":"35726de8-13bb-49e4-9a25-2db48af36862","block_type":"box","text":"me and may be subject to more abrupt or erratic","page_number":144,"box":{"x":511,"y":816,"width":350,"height":12}},{"id":"794b18a2-7f93-4ca7-8203-91fe94eb2c44","block_type":"box","text":"price movements than larger company securities. Histo","page_number":144,"box":{"x":117,"y":831,"width":399,"height":12}},{"id":"a7f1cbc5-fd01-4659-bce5-14dea20dc975","block_type":"box","text":"rically, small capitalization stocks, such as REITs,","page_number":144,"box":{"x":518,"y":831,"width":364,"height":12}},{"id":"93d226e8-50b7-4f52-94d6-9cb1d90cb8a8","block_type":"box","text":"have been more volatile in price than the larger c","page_number":144,"box":{"x":117,"y":847,"width":354,"height":12}},{"id":"7980865b-5faa-4803-baab-6179fa2dd544","block_type":"box","text":"apitalization stocks such as those included in the S&P","page_number":144,"box":{"x":472,"y":847,"width":396,"height":12}},{"id":"d216eb27-1d20-41c1-a453-0ba56bb1e7b5","block_type":"box","text":"500 Index. The management of a REIT may be subject to","page_number":144,"box":{"x":116,"y":862,"width":423,"height":12}},{"id":"7854ec4f-b391-4ea0-aa95-4069dc826537","block_type":"box","text":"conflicts of interest with respect to the","page_number":144,"box":{"x":540,"y":862,"width":278,"height":12}},{"id":"f1449092-ab44-4ec2-9672-d9a464e3f186","block_type":"box","text":"operation of the business of the REIT and may be involved","page_number":144,"box":{"x":116,"y":878,"width":432,"height":12}},{"id":"db7e9124-9c6c-4b64-9fea-2a50957a08a6","block_type":"box","text":"in real estate activities competitive with the","page_number":144,"box":{"x":549,"y":878,"width":314,"height":12}},{"id":"2d2bd13a-e3c1-42d7-a7d9-9133f6275c08","block_type":"box","text":"II-85","page_number":144,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"afcc288b-39ea-45c5-8296-da7a6c1cfdf5","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":144,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8d1d7594-40b7-4d0b-b5a5-f59cc8312aec","block_type":"box","text":"REIT. REITs may own properties through joint ventures","page_number":145,"box":{"x":117,"y":87,"width":407,"height":12}},{"id":"a70b2e0a-0de0-4155-973f-8ee9b1404f9a","block_type":"box","text":"or in other circumstances in which the REIT may","page_number":145,"box":{"x":525,"y":87,"width":357,"height":12}},{"id":"29e58d93-797f-4292-b723-396d5d8b1dae","block_type":"box","text":"not have control over its investments. REITs","page_number":145,"box":{"x":117,"y":103,"width":320,"height":9}},{"id":"102e7d1c-07de-44bb-812b-64d8cafedba7","block_type":"box","text":"may incur significant amounts of leverage.","page_number":145,"box":{"x":438,"y":102,"width":316,"height":13}},{"id":"86dc395a-8597-4670-b346-5097be426f24","block_type":"box","text":"Market Risks/Recent Market Events","page_number":145,"box":{"x":116,"y":134,"width":283,"height":9}},{"id":"28adc94c-1aba-46f2-afb9-76cae2fe6945","block_type":"box","text":". Securities may decline in value due to factors affecting","page_number":145,"box":{"x":401,"y":134,"width":418,"height":12}},{"id":"34301ad7-a5ad-4503-9181-9ce519e0fa00","block_type":"box","text":"securities markets generally or particular industries represented in the markets. The value of a security","page_number":145,"box":{"x":116,"y":149,"width":767,"height":12}},{"id":"4e9d788d-b46d-48d8-9adf-848edb36b69a","block_type":"box","text":"may decline due to general market conditions, economic trends or events that are not specifically","page_number":145,"box":{"x":117,"y":165,"width":725,"height":12}},{"id":"8f44154f-d57a-48b8-95d9-04c9cb3e0b17","block_type":"box","text":"related to a company or to factors that affect a particular industry or industries, or factors that affect a","page_number":145,"box":{"x":117,"y":180,"width":754,"height":12}},{"id":"fb08741f-631d-40c2-a203-1a0269b0d3b0","block_type":"box","text":"particular issuer or issuers, exchange, country, group of countries, region, market, industry, group of","page_number":145,"box":{"x":117,"y":196,"width":748,"height":12}},{"id":"9d767945-0d98-42a3-b9d5-342943ee0e37","block_type":"box","text":"industries, sector or asset class. The success of a Fund’s activities could be affected by interest rates,","page_number":145,"box":{"x":117,"y":211,"width":761,"height":12}},{"id":"656d9558-a89c-4691-a0fb-a68ae36583c7","block_type":"box","text":"availability of credit, inflation rates, economic uncertainty, changes in laws, trade barriers, economic","page_number":145,"box":{"x":116,"y":227,"width":744,"height":12}},{"id":"927d62e2-3a6b-410d-ab24-28e5be098e20","block_type":"box","text":"sanctions, currency exchange controls, and local, regional or global events such as war, acts of","page_number":145,"box":{"x":116,"y":242,"width":714,"height":12}},{"id":"667531a6-bcdb-4606-9484-c429274ed453","block_type":"box","text":"terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":145,"box":{"x":116,"y":258,"width":744,"height":11}},{"id":"d3b4ceee-173b-4ac7-b724-f7a78215a341","block_type":"box","text":"issues, recessions, or other events could have a significant impact on a Fund and its investments.","page_number":145,"box":{"x":117,"y":273,"width":730,"height":12}},{"id":"49de804b-0191-478c-8569-688d5c038e2f","block_type":"box","text":"During a general economic downturn in the securities markets, multiple asset classes may be","page_number":145,"box":{"x":117,"y":289,"width":698,"height":12}},{"id":"c1ae077f-1985-4916-b34e-cda6e6814461","block_type":"box","text":"negatively affected. These factors may affect the level and volatility of securities prices and the liquidity","page_number":145,"box":{"x":117,"y":304,"width":768,"height":12}},{"id":"92994fd6-d3bb-4894-af20-ef49ae855d7a","block_type":"box","text":"of a Fund’s investments, which could impair the Fund’s profitability or result in losses. A Fund may","page_number":145,"box":{"x":116,"y":320,"width":734,"height":12}},{"id":"05adac7e-27b5-47af-9c6b-b2d3f0ab8c5f","block_type":"box","text":"maintain substantial trading positions that can be adversely affected by the level of volatility in the","page_number":145,"box":{"x":117,"y":335,"width":728,"height":12}},{"id":"6850040d-c3ea-4e1e-98e0-d99c280dcf2a","block_type":"box","text":"financial markets; the larger the positions, the greater the potential for loss. Unpredictable or unstable","page_number":145,"box":{"x":116,"y":351,"width":758,"height":12}},{"id":"e08367ac-3cf2-4f5e-a064-6ba77afdd7c0","block_type":"box","text":"market conditions may result in reduced opportunities to find suitable investments to deploy capital or","page_number":145,"box":{"x":117,"y":366,"width":756,"height":12}},{"id":"83059ab5-b1bc-446b-934b-5c2f8bf72b05","block_type":"box","text":"make it more difficult to exit and realize value","page_number":145,"box":{"x":117,"y":382,"width":339,"height":9}},{"id":"e587bbd4-e54d-44f0-bae0-8587cf358382","block_type":"box","text":"from a Fund’s existing investments. It is important to","page_number":145,"box":{"x":456,"y":382,"width":394,"height":12}},{"id":"4775a75e-067f-4b8a-9c7b-3eb52984132d","block_type":"box","text":"understand that a Fund can incur material losses even if it reacts quickly to difficult market conditions","page_number":145,"box":{"x":117,"y":397,"width":754,"height":12}},{"id":"97cd991f-35af-4ad5-8a17-df14e1b47c4d","block_type":"box","text":"and there can be no assurance that a Fund will not suffer material adverse effects from broad and","page_number":145,"box":{"x":116,"y":413,"width":732,"height":9}},{"id":"a8295d4d-9920-4268-a835-af1ad3c60d41","block_type":"box","text":"rapid changes in market conditions.","page_number":145,"box":{"x":117,"y":428,"width":268,"height":12}},{"id":"ae87d6e0-2bbe-4b65-943e-ce86b09c5785","block_type":"box","text":"Periods of unusually high volatility in the financial","page_number":145,"box":{"x":117,"y":459,"width":359,"height":12}},{"id":"565627b9-788b-4841-986c-3281cd31d6b2","block_type":"box","text":"markets and restrictive credit conditions, sometimes","page_number":145,"box":{"x":477,"y":459,"width":381,"height":11}},{"id":"15e39925-9af5-4115-ac15-6cf564c86a9a","block_type":"box","text":"limited to a particular sector or a geography, can o","page_number":145,"box":{"x":117,"y":475,"width":364,"height":12}},{"id":"98888f3d-0657-48be-8092-404d14c82ae7","block_type":"box","text":"ccur. Some countries, including the United States,","page_number":145,"box":{"x":482,"y":475,"width":368,"height":12}},{"id":"4245d793-84d2-40ab-9ee3-c5678395ff04","block_type":"box","text":"have adopted and/or are considering the adoption of more","page_number":145,"box":{"x":117,"y":490,"width":422,"height":12}},{"id":"3abdc5fc-7797-48bc-a4ee-7147923141e3","block_type":"box","text":"protectionist trade policies, a move away from","page_number":145,"box":{"x":539,"y":490,"width":344,"height":12}},{"id":"20b5d5ec-6970-4000-adab-1f6d36b0ca5f","block_type":"box","text":"the tighter financial industry regulations that follow","page_number":145,"box":{"x":116,"y":506,"width":363,"height":12}},{"id":"53004aac-b232-47e3-ad54-30152b89bef0","block_type":"box","text":"ed the financial crisis of","page_number":145,"box":{"x":480,"y":506,"width":174,"height":9}},{"id":"2c705d1b-71aa-4405-903d-47e75943cbdc","block_type":"box","text":"2008, and/or substantially","page_number":145,"box":{"x":654,"y":506,"width":192,"height":12}},{"id":"d993c80d-3d32-40ee-af93-b63597efc260","block_type":"box","text":"reducing corporate taxes. The exact shape of these","page_number":145,"box":{"x":117,"y":521,"width":379,"height":12}},{"id":"c1a43049-b4b1-4d26-8f19-fafa3170eda5","block_type":"box","text":"policies is still being considered, but the equity and","page_number":145,"box":{"x":497,"y":521,"width":372,"height":12}},{"id":"6eb4e396-bd6e-442c-9e10-2ed9cb883aa2","block_type":"box","text":"debt markets may react strongly to expectations of c","page_number":145,"box":{"x":116,"y":537,"width":381,"height":12}},{"id":"ba64a9bb-295b-420e-9d3f-86da16513d9a","block_type":"box","text":"hange, which could increase volatility, especially if","page_number":145,"box":{"x":498,"y":537,"width":367,"height":12}},{"id":"4e8cf97b-56ab-4d80-b8c5-862d4b0bf87f","block_type":"box","text":"the market’s expectations are not borne out. A rise in","page_number":145,"box":{"x":116,"y":552,"width":384,"height":12}},{"id":"66bc37df-e85e-48b6-9d7c-18f402beae32","block_type":"box","text":"protectionist trade policies, and the possibility of","page_number":145,"box":{"x":501,"y":552,"width":357,"height":12}},{"id":"5677bd27-a832-4e7b-b811-91e3ed7b8f21","block_type":"box","text":"changes to some international trade agreements, coul","page_number":145,"box":{"x":116,"y":568,"width":392,"height":12}},{"id":"a9652445-80f6-417a-925a-4241c6ebf74a","block_type":"box","text":"d affect the economies of many nations in ways","page_number":145,"box":{"x":509,"y":568,"width":350,"height":12}},{"id":"1e67b06b-e878-4ec7-adea-78d6b60b2c52","block_type":"box","text":"that cannot necessarily be foreseen at the present","page_number":145,"box":{"x":116,"y":583,"width":370,"height":12}},{"id":"f77d23d0-55b7-42b4-a11d-937e021a6db1","block_type":"box","text":"time. In addition, geopolitical and other risks, including","page_number":145,"box":{"x":486,"y":583,"width":398,"height":12}},{"id":"bd29c1af-5eb7-4fa5-9747-c33bfbe54554","block_type":"box","text":"environmental and public health, may add to instability in world economies and markets generally.","page_number":145,"box":{"x":116,"y":599,"width":716,"height":12}},{"id":"bbaff589-349e-4bad-bf7c-06b0334dd53e","block_type":"box","text":"Economies and financial markets throughout the world","page_number":145,"box":{"x":117,"y":614,"width":400,"height":12}},{"id":"3bf7b717-1cd3-41d0-ad1a-5cbce47bcf35","block_type":"box","text":"are increasingly interconnected. As a result,","page_number":145,"box":{"x":517,"y":614,"width":323,"height":12}},{"id":"07b04efa-78fc-431b-b34f-91b49a76d94c","block_type":"box","text":"whether or not a Fund invests in securities of issuers","page_number":145,"box":{"x":116,"y":630,"width":388,"height":9}},{"id":"618c069d-41d2-4277-b2b3-20121da27f00","block_type":"box","text":"located in or with significant exposure to countries","page_number":145,"box":{"x":504,"y":630,"width":367,"height":12}},{"id":"64c30974-376e-46f8-a299-d6e38228dbf0","block_type":"box","text":"experiencing economic, political and/or financial di","page_number":145,"box":{"x":116,"y":645,"width":364,"height":12}},{"id":"94a4a1be-2c9f-432d-bc34-da99b362f87d","block_type":"box","text":"fficulties, the value and liquidity of the Fund’s","page_number":145,"box":{"x":481,"y":645,"width":330,"height":12}},{"id":"caaea34f-ffca-4ded-ae39-62b632b040f3","block_type":"box","text":"investments may be negatively affected by such events.","page_number":145,"box":{"x":117,"y":661,"width":405,"height":12}},{"id":"c1c7f0e1-c694-4260-afc3-c5b504928a87","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments","page_number":145,"box":{"x":117,"y":692,"width":757,"height":12}},{"id":"7419f752-b9d0-4f48-afe7-524a62ade1a6","block_type":"box","text":"in which the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future","page_number":145,"box":{"x":117,"y":707,"width":745,"height":12}},{"id":"a4248ade-859b-4449-aaf3-fe47aedb0116","block_type":"box","text":"legislation or regulation or other governmental actions could limit or preclude the Fund’s abilities to","page_number":145,"box":{"x":117,"y":723,"width":729,"height":12}},{"id":"a0594b88-14b1-4a91-b333-33faa01e8c59","block_type":"box","text":"achieve its investment objectives or otherwise adversely impact an investment in the Fund. Recent","page_number":145,"box":{"x":116,"y":738,"width":733,"height":12}},{"id":"4b24e031-4875-42a9-88b2-c6c366e22530","block_type":"box","text":"policy initiatives undertaken by the U.S. government have the potential to impact international relations,","page_number":145,"box":{"x":117,"y":754,"width":764,"height":12}},{"id":"4a5946aa-7604-4295-82c7-48ea7f4aa4a0","block_type":"box","text":"trade agreements and the overall regulatory environment in ways that could create uncertainty and","page_number":145,"box":{"x":116,"y":769,"width":732,"height":12}},{"id":"9af78cf9-eb80-4814-88cd-2fa0bcb1c973","block_type":"box","text":"instability in domestic and global markets, and could adversely affect the investment performance of","page_number":145,"box":{"x":117,"y":785,"width":742,"height":12}},{"id":"484dda58-36f6-4414-bfb1-64fd3c177388","block_type":"box","text":"the Fund. In particular, actions taken by the U.S. government in respect of international trade relations","page_number":145,"box":{"x":116,"y":800,"width":757,"height":12}},{"id":"42f32b1b-3c9b-4586-a3be-0ff4cc251d5b","block_type":"box","text":"could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":145,"box":{"x":116,"y":816,"width":734,"height":12}},{"id":"4324e5b1-d2aa-4b5b-97a4-4860caae317d","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events","page_number":145,"box":{"x":116,"y":831,"width":744,"height":12}},{"id":"8a86ffa8-c5ce-41d0-b6dc-f447cd494eba","block_type":"box","text":"within the United States, including a contentious domestic political environment, changes in political","page_number":145,"box":{"x":116,"y":847,"width":743,"height":12}},{"id":"a23486c2-7774-4b3c-806c-798042dcd1ca","block_type":"box","text":"party control of one or more branches of the U.S. Government, the U.S. Government’s inability at times","page_number":145,"box":{"x":117,"y":862,"width":770,"height":12}},{"id":"52148705-a4c4-497b-b939-8faa76600005","block_type":"box","text":"to agree on a long-term budget and deficit reduction plan, the threat of a U.S. Government shutdown,","page_number":145,"box":{"x":116,"y":878,"width":757,"height":12}},{"id":"4d66f3f8-fcda-404c-ab27-7a897701e2fb","block_type":"box","text":"II-86","page_number":145,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"c2736ceb-a06d-4947-9488-d4e867e4c1a7","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":145,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"7b0ab9f5-5b8f-4562-a586-b264653f0b54","block_type":"box","text":"and disagreements over, or threats not to increase, the U.S. Government’s borrowing limit (or “debt","page_number":146,"box":{"x":116,"y":87,"width":742,"height":12}},{"id":"5095b32d-e7e0-4b9a-9915-45186066d322","block_type":"box","text":"ceiling”), as well as political and diplomatic events abroad, may affect investor and consumer","page_number":146,"box":{"x":116,"y":102,"width":694,"height":13}},{"id":"338705e9-38bd-4db4-af73-b3583cab09f4","block_type":"box","text":"confidence and may adversely impact financial markets and the broader economy, perhaps suddenly","page_number":146,"box":{"x":116,"y":118,"width":756,"height":12}},{"id":"c5bffad1-4a7c-496e-abc4-2bd603e9057d","block_type":"box","text":"and to a significant degree. A downgrade of the ratings of U.S. Government debt obligations, or","page_number":146,"box":{"x":116,"y":134,"width":713,"height":12}},{"id":"268e2a7e-17e9-4a24-8df0-acb45faf0d11","block_type":"box","text":"concerns about the U.S. Government’s credit quality in general, could have a substantial negative","page_number":146,"box":{"x":116,"y":149,"width":730,"height":12}},{"id":"ed6362a3-63d7-473b-b3ed-0a363dbf0fa8","block_type":"box","text":"effect on the U.S. and global economies. For example, concerns about the U.S. Government’s credit","page_number":146,"box":{"x":116,"y":165,"width":751,"height":12}},{"id":"1d9caac9-d186-4205-ad01-4e3c7456ab26","block_type":"box","text":"quality may cause increased volatility in the stock and bond markets, higher interest rates, reduced","page_number":146,"box":{"x":116,"y":180,"width":739,"height":12}},{"id":"31b8087e-bf33-4bc1-8fef-44d2623ecf6b","block_type":"box","text":"prices and liquidity of U.S. Treasury securities, and/or increased costs of various kinds of debt.","page_number":146,"box":{"x":117,"y":196,"width":706,"height":12}},{"id":"19bce682-14da-449c-a70d-ec2d424ae2c6","block_type":"box","text":"Moreover, although the U.S. Government has honored its credit obligations, there remains a possibility","page_number":146,"box":{"x":117,"y":211,"width":766,"height":12}},{"id":"db1688e2-5d7a-44e9-b1d9-08e1996d53e3","block_type":"box","text":"that the United States could default on its obligations. The consequences of such an unprecedented","page_number":146,"box":{"x":116,"y":227,"width":747,"height":12}},{"id":"7f8d5bba-d708-4647-9abc-b11b81339f76","block_type":"box","text":"event are impossible to predict, but it is likely that a default by the United States would be highly","page_number":146,"box":{"x":116,"y":242,"width":716,"height":12}},{"id":"23b70e45-8fb2-4224-9d9b-069fddf8f111","block_type":"box","text":"disruptive to the U.S. and global securities markets and could significantly impair the value of the","page_number":146,"box":{"x":116,"y":258,"width":723,"height":12}},{"id":"6f03e75e-c0dd-4162-a01b-450350a02a83","block_type":"box","text":"Fund’s investments.","page_number":146,"box":{"x":117,"y":273,"width":153,"height":10}},{"id":"057fac6d-adb5-412c-accf-799b944390d1","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures,","page_number":146,"box":{"x":116,"y":300,"width":761,"height":12}},{"id":"511e2b95-9900-4a2a-849b-385a529923da","block_type":"box","text":"declines in global financial markets, higher default rates, supply chain disruptions, and a substantial","page_number":146,"box":{"x":116,"y":316,"width":743,"height":12}},{"id":"28db97ca-ce77-4ff0-95ae-b6e02b071ad5","block_type":"box","text":"economic downturn in economies throughout the world. The impact of this coronavirus, and other","page_number":146,"box":{"x":116,"y":331,"width":727,"height":12}},{"id":"8b668772-d45b-49eb-bb17-d349bad25b7c","block_type":"box","text":"epidemics and pandemics that may arise in the future, could affect the economies of many nations,","page_number":146,"box":{"x":116,"y":347,"width":741,"height":12}},{"id":"35a33c1a-db7c-4fa6-b68d-8c5ff472eb6e","block_type":"box","text":"individual companies and the market in general in ways that cannot necessarily be foreseen at the","page_number":146,"box":{"x":117,"y":362,"width":733,"height":12}},{"id":"5c9cb119-040c-4273-8619-82627bdab91f","block_type":"box","text":"present time. These health crises may be short term or long term, and may exacerbate other pre","page_number":146,"box":{"x":117,"y":378,"width":721,"height":12}},{"id":"194064fe-4750-4b66-b752-650818cfd8ce","block_type":"box","text":"existing political, social and economic risks, disrupt normal market conditions and operations, and","page_number":146,"box":{"x":116,"y":393,"width":729,"height":12}},{"id":"c55ea7fa-6074-4885-9bc7-8d8b90c6d1ad","block_type":"box","text":"negatively impact performance. In addition, the impact of infectious diseases in emerging developing or","page_number":146,"box":{"x":117,"y":409,"width":771,"height":12}},{"id":"acccf375-8b72-412f-8d68-5a7e05ace158","block_type":"box","text":"emerging market countries may be greater due to less established health care systems.","page_number":146,"box":{"x":116,"y":424,"width":657,"height":12}},{"id":"cde10e2d-00db-489e-9c1b-f08e2c79f6ab","block_type":"box","text":"Legal and Regulatory Risks","page_number":146,"box":{"x":116,"y":451,"width":205,"height":12}},{"id":"4ce89cb8-17b8-4674-a1fd-6aff31599f8f","block_type":"box","text":". The Manager is part of a larger firm with multiple business lines active in","page_number":146,"box":{"x":323,"y":451,"width":550,"height":12}},{"id":"8d3da57b-d964-4e99-9bbd-8f8e41b4d47a","block_type":"box","text":"multiple jurisdictions that are governed by a multitude of legal systems and regulatory regimes, some","page_number":146,"box":{"x":117,"y":467,"width":753,"height":12}},{"id":"6fc80442-c1dc-406b-8e0f-b2c4852f6a1a","block_type":"box","text":"of which are new and evolving. As a result, the Funds and the Manager and its affiliates are subject to","page_number":146,"box":{"x":116,"y":482,"width":761,"height":12}},{"id":"e8704f5c-9326-4926-bd3a-94f792f1f298","block_type":"box","text":"extensive and sophisticated legal, tax and regulatory risks, including changing laws and regulations,","page_number":146,"box":{"x":116,"y":498,"width":746,"height":12}},{"id":"3f25a704-235b-46e6-bfec-97b04e57ea61","block_type":"box","text":"developing interpretations of such laws and regulations, as well as existing laws, and increased","page_number":146,"box":{"x":116,"y":513,"width":712,"height":12}},{"id":"bdcf5bc9-e576-42ef-afb7-13d1239641ba","block_type":"box","text":"scrutiny by regulators and law enforcement authorities. Unexpected economic, political, regulatory and","page_number":146,"box":{"x":116,"y":529,"width":766,"height":12}},{"id":"b4af38ad-4c24-47ac-88dc-fb3c15db0f19","block_type":"box","text":"diplomatic events within the United States and abroad can trigger new and complex regulations that","page_number":146,"box":{"x":116,"y":544,"width":745,"height":12}},{"id":"9de0fcfd-1ec9-44fe-aef2-62e7c57c77f6","block_type":"box","text":"the Manager and/or the Funds may need to comply with. The implementation of changes to comply","page_number":146,"box":{"x":116,"y":560,"width":742,"height":12}},{"id":"1fb23d4a-f3d0-480d-ae4d-5a0beb3d1a95","block_type":"box","text":"with current and/or new regulations applicable to the Funds and/or the Manager could have a material","page_number":146,"box":{"x":116,"y":576,"width":761,"height":11}},{"id":"522ebe0c-424f-4cb6-a839-cd8dd05b131b","block_type":"box","text":"adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit","page_number":146,"box":{"x":116,"y":591,"width":712,"height":12}},{"id":"b4beb1a5-3d31-4fb4-bcf0-b12c4b01e307","block_type":"box","text":"margins, reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":146,"box":{"x":117,"y":606,"width":762,"height":12}},{"id":"4e6b3c2f-7945-4254-b8f3-f15af427a6a4","block_type":"box","text":"Tariff and Trade Policy Risks","page_number":146,"box":{"x":118,"y":634,"width":213,"height":12}},{"id":"35a71872-58be-4618-ab6f-a56536ff4651","block_type":"box","text":". Some countries, including the U.S., have adopted more protectionist","page_number":146,"box":{"x":332,"y":634,"width":521,"height":12}},{"id":"ea7c691c-8905-4e2d-94a3-283dd7327920","block_type":"box","text":"trade policies. The U.S. government recently altered its approach to international trade policy, resulting","page_number":146,"box":{"x":116,"y":649,"width":768,"height":12}},{"id":"bc74a09c-3ff6-4f1a-9d7d-570114a03eb0","block_type":"box","text":"in significant impacts on international trade relations, certain tax and immigration policies, and other","page_number":146,"box":{"x":117,"y":665,"width":738,"height":12}},{"id":"be665885-ef1c-428d-bd10-da00f7a66d1e","block_type":"box","text":"aspects of the national and international political and financial landscape. The rise in protectionist trade","page_number":146,"box":{"x":116,"y":680,"width":764,"height":12}},{"id":"629794ec-8e83-48b9-80b8-71eaeba6f282","block_type":"box","text":"policies, slowing economic growth, changes to some major international trade agreements, risks","page_number":146,"box":{"x":117,"y":696,"width":713,"height":12}},{"id":"dd02ebf8-6809-4031-bdcb-0cc5d8c24524","block_type":"box","text":"associated with trade agreements between the U.S. and the European Union, and the risks associated","page_number":146,"box":{"x":116,"y":711,"width":761,"height":12}},{"id":"4f6a6e41-9023-4f97-8c4f-c5d875bc3fd3","block_type":"box","text":"with trade negotiations between the U.S. and China, could affect the economies of many nations in","page_number":146,"box":{"x":116,"y":727,"width":733,"height":12}},{"id":"7bc904f0-04a2-4dff-bd11-5056e5940908","block_type":"box","text":"ways that cannot necessarily be foreseen at the present time.","page_number":146,"box":{"x":116,"y":742,"width":456,"height":12}},{"id":"d83fa4f5-0c92-4e67-b69d-6dceb1000185","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together","page_number":146,"box":{"x":117,"y":769,"width":754,"height":12}},{"id":"09c2b257-756d-4bc0-a84b-dc0a08aee10b","block_type":"box","text":"with any future downturns in the global economy resulting therefrom, could adversely affect the","page_number":146,"box":{"x":116,"y":785,"width":705,"height":12}},{"id":"dd7f19f3-730e-4bf1-861b-0a2577dcef22","block_type":"box","text":"financial performance of a Fund and its investments. Trade policy may be an ongoing source of","page_number":146,"box":{"x":116,"y":800,"width":709,"height":12}},{"id":"edb787d3-29b0-4c75-b661-f65eb26e95de","block_type":"box","text":"instability, potentially resulting in significant currency fluctuations and/or having other adverse effects","page_number":146,"box":{"x":117,"y":816,"width":745,"height":12}},{"id":"dfbf39b9-0b57-485f-a94b-96ce1741e862","block_type":"box","text":"on international markets, international trade agreements, and/or other existing cross-border","page_number":146,"box":{"x":116,"y":831,"width":683,"height":12}},{"id":"526f2c15-4193-4688-b627-62e269ef45a7","block_type":"box","text":"cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or otherwise). To the extent","page_number":146,"box":{"x":116,"y":847,"width":771,"height":12}},{"id":"719d36fb-1ebb-4d73-a178-f0b60c6deac9","block_type":"box","text":"trade disputes escalate globally, there could be additional significant impacts on the sectors or","page_number":146,"box":{"x":116,"y":862,"width":704,"height":12}},{"id":"50cf14fd-3a13-47a5-9e89-d3fed08a2eee","block_type":"box","text":"industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":146,"box":{"x":117,"y":878,"width":709,"height":12}},{"id":"e9f2dcf3-de94-4bf0-bae5-f48c4ce4a5fb","block_type":"box","text":"II-87","page_number":146,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"46a67e61-b0ce-4720-9cc5-9f696a7241e6","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":146,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e1c29521-f815-4e6c-9da2-eb4636f57ae8","block_type":"box","text":"Geographic Risks","page_number":147,"box":{"x":117,"y":87,"width":131,"height":12}},{"id":"a875b76e-ecbf-4ed8-bc1d-75c6ae49ba5e","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise","page_number":147,"box":{"x":250,"y":87,"width":621,"height":12}},{"id":"1b5c6946-0ea3-464d-a2e9-bec568156107","block_type":"box","text":"connected to, parts of the world affected by natural disasters such as severe heat, earthquakes,","page_number":147,"box":{"x":116,"y":102,"width":717,"height":13}},{"id":"90cf7bab-bbde-4ddf-9f30-a645af659924","block_type":"box","text":"tornadoes, volcanic eruptions, wildfires, droughts, floods, hurricanes or tsunamis, and are economically","page_number":147,"box":{"x":116,"y":118,"width":771,"height":12}},{"id":"d80a5751-0a19-485b-af50-6a62917f9cd8","block_type":"box","text":"sensitive to environmental events. In addition, issuers may be impacted by security concerns with","page_number":147,"box":{"x":116,"y":134,"width":729,"height":12}},{"id":"78bcc271-5ab0-40e1-8a78-91a1dfcaccee","block_type":"box","text":"respect to a country or region, such as war and other types of conflict, terrorism, strained international","page_number":147,"box":{"x":117,"y":149,"width":760,"height":12}},{"id":"46891d75-6b6f-4824-8bb4-afd1d0b95bd2","block_type":"box","text":"relations and territorial disputes. Any of these events may adversely affect the issuers, markets and","page_number":147,"box":{"x":117,"y":165,"width":742,"height":12}},{"id":"f706093b-983a-4239-b7b6-dd198b751eb7","block_type":"box","text":"economies to which a Fund is exposed, which may adversely affect the value of the Fund.","page_number":147,"box":{"x":116,"y":180,"width":673,"height":12}},{"id":"ea467290-cfb8-40ae-9a43-2880974cacb2","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":147,"box":{"x":116,"y":211,"width":275,"height":12}},{"id":"02e8625d-e692-414a-9184-32184acc58cb","block_type":"box","text":"The London Interbank Offered Rate (“LIBOR”) had historically","page_number":147,"box":{"x":393,"y":211,"width":469,"height":12}},{"id":"b8e8741e-4856-4a35-af52-03ce024d65f6","block_type":"box","text":"been used extensively in the U.S. and globally as a “benchmark” or “reference rate” for various","page_number":147,"box":{"x":117,"y":227,"width":707,"height":12}},{"id":"05834cf7-79fa-460f-8e3c-f3694424c387","block_type":"box","text":"commercial and financial contracts, including corporate and municipal bonds, bank loans, asset","page_number":147,"box":{"x":116,"y":242,"width":714,"height":12}},{"id":"f618c04b-d7d4-4452-a0d8-157e3580a597","block_type":"box","text":"backed and mortgage-related securities, interest rate swaps and other derivatives. Instruments in","page_number":147,"box":{"x":117,"y":258,"width":726,"height":12}},{"id":"d1d4197c-7085-4bac-be0d-90fffc36b230","block_type":"box","text":"which a Fund may have historically paid interest at floating rates based on LIBOR or may have been","page_number":147,"box":{"x":116,"y":273,"width":750,"height":12}},{"id":"804101c6-c144-4a58-b5e5-bd775f0aac73","block_type":"box","text":"subject to interest caps or floors based on LIBOR. The Funds and issuers of instruments in which a","page_number":147,"box":{"x":116,"y":289,"width":742,"height":12}},{"id":"f1dc9c07-e222-4dd7-8125-27eb3e371ddc","block_type":"box","text":"Fund invests may have also historically obtained financing at floating rates based on LIBOR. In","page_number":147,"box":{"x":117,"y":304,"width":709,"height":12}},{"id":"e920252b-7bc4-4c98-9294-c75a4c2f33ae","block_type":"box","text":"connection with the global transition away from LIBOR led by regulators and market participants as a","page_number":147,"box":{"x":116,"y":320,"width":754,"height":12}},{"id":"04313ce5-534e-4e6b-ab06-2bee6f977e8d","block_type":"box","text":"result of benchmark reforms, LIBOR was last published on a representative basis at the end of June","page_number":147,"box":{"x":117,"y":335,"width":748,"height":12}},{"id":"d4784305-5c2e-4826-8e4a-6ebccec9d704","block_type":"box","text":"2023. Alternative reference rates to LIBOR have been established in most major currencies and","page_number":147,"box":{"x":116,"y":351,"width":717,"height":12}},{"id":"8db27992-d8a3-4fd5-8586-4aba072c96db","block_type":"box","text":"markets in these alternative rates are continuing to develop (","page_number":147,"box":{"x":117,"y":366,"width":449,"height":12}},{"id":"bc3498de-0f55-46df-a5e2-a01aa784f114","block_type":"box","text":"e.g.","page_number":147,"box":{"x":568,"y":369,"width":25,"height":9}},{"id":"07e9cf6a-c33f-45fc-8cf3-cfc2b2007462","block_type":"box","text":", the Secured Overnight Financing","page_number":147,"box":{"x":596,"y":366,"width":259,"height":12}},{"id":"da124631-2492-4458-b0ec-a6d32946612d","block_type":"box","text":"Rate (“SOFR”) for USD-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual","page_number":147,"box":{"x":117,"y":382,"width":771,"height":12}},{"id":"dcd17b1e-e600-41c6-a8b4-a7e806981c47","block_type":"box","text":"risks associated with the transition may remain that may impact markets or particular investments and,","page_number":147,"box":{"x":117,"y":397,"width":765,"height":12}},{"id":"217159f1-760e-4a3e-9f6c-ce05a390a46c","block_type":"box","text":"as such, the full impact of the transition on the Funds or the financial instruments in which the Funds","page_number":147,"box":{"x":116,"y":413,"width":749,"height":12}},{"id":"f2517de8-f5dc-4409-ad45-74ce2383061b","block_type":"box","text":"invest cannot yet be fully determined.","page_number":147,"box":{"x":117,"y":428,"width":281,"height":12}},{"id":"be49b17c-e066-459c-ba62-3a5f7b763fae","block_type":"box","text":"SOFR is intended to be a broad measure of the cost of","page_number":147,"box":{"x":116,"y":459,"width":400,"height":10}},{"id":"a5dfaf00-0c50-41d0-ab35-9072195c3c53","block_type":"box","text":"f borrowing funds overnight in transactions that are","page_number":147,"box":{"x":515,"y":459,"width":370,"height":12}},{"id":"e6d217e6-a8b0-4689-9e75-57c4fcb4e1ab","block_type":"box","text":"collateralized by U.S. Treasury securities . SOFR","page_number":147,"box":{"x":116,"y":475,"width":357,"height":12}},{"id":"af4d11c3-6f5c-495e-ad91-0e8ddec9ae0b","block_type":"box","text":"R is calculated based on transaction-level repo data","page_number":147,"box":{"x":473,"y":475,"width":370,"height":12}},{"id":"dfbb5298-2b09-4d0b-9b19-8d3f0982b4b5","block_type":"box","text":"collected from various sources. For each trading day,","page_number":147,"box":{"x":116,"y":490,"width":391,"height":12}},{"id":"3861213d-02c2-40bb-b0a9-36395eb7bf84","block_type":"box","text":"SOFR is calculated as a volume-weighted median","page_number":147,"box":{"x":508,"y":490,"width":368,"height":12}},{"id":"a6b40621-6703-4c29-bad7-3c0b1685808b","block_type":"box","text":"rate derived from such data. Because SOFR is a financing rate based on overnight secured funding","page_number":147,"box":{"x":117,"y":506,"width":728,"height":12}},{"id":"3cbd80e5-e5a6-4d07-97eb-b2b0c39c65d8","block_type":"box","text":"transactions, it differs fundamentally from LIBOR.","page_number":147,"box":{"x":116,"y":521,"width":357,"height":12}},{"id":"ad9b844d-3055-4c1a-984c-7e9dbf8e82e0","block_type":"box","text":"LIBOR is intended to be an unsecured rate that","page_number":147,"box":{"x":474,"y":521,"width":354,"height":10}},{"id":"b311dd45-8ff0-49c8-b46b-cad65402784b","block_type":"box","text":"represents interbank funding costs for different short-term","page_number":147,"box":{"x":117,"y":537,"width":422,"height":12}},{"id":"094709ee-fec1-4d33-a2ed-4d5270f67431","block_type":"box","text":"maturities or tenors. It is a forward-looking rate","page_number":147,"box":{"x":540,"y":537,"width":343,"height":12}},{"id":"1952b69c-4d0c-491b-b6d0-154eee24d89f","block_type":"box","text":"reflecting expectations regarding interest rates for the applicable tenor. Thus, LIBOR is intended to be","page_number":147,"box":{"x":117,"y":552,"width":742,"height":12}},{"id":"5223c336-f383-4159-881a-be49165ea875","block_type":"box","text":"sensitive, in certain respects, to bank credit risk and to","page_number":147,"box":{"x":116,"y":568,"width":394,"height":12}},{"id":"1e08ee36-1d6b-4bf0-a72d-2f4865af1632","block_type":"box","text":"term interest rate risk.","page_number":147,"box":{"x":510,"y":568,"width":169,"height":9}},{"id":"c6f98c7e-b1c1-46d4-beed-4b78821153f8","block_type":"box","text":"In contrast, SOFR is a","page_number":147,"box":{"x":680,"y":568,"width":165,"height":11}},{"id":"014698a3-b501-4d31-9595-6baacb2082ad","block_type":"box","text":"secured overnight rate reflecting the credit of U.S. Tr","page_number":147,"box":{"x":116,"y":583,"width":382,"height":12}},{"id":"79050f78-56cc-4b1c-8881-5cc886342fdb","block_type":"box","text":"easury securities as collateral. Thus, it is largely","page_number":147,"box":{"x":498,"y":583,"width":352,"height":12}},{"id":"726f72ee-ec5b-4081-a007-e83eb1ca53f1","block_type":"box","text":"insensitive to credit-risk considerations and to short-te","page_number":147,"box":{"x":117,"y":599,"width":390,"height":9}},{"id":"33ee591a-8a9d-4142-8790-b24748437cf1","block_type":"box","text":"rm interest rate risks. SOFR is a transaction-based","page_number":147,"box":{"x":509,"y":599,"width":373,"height":9}},{"id":"30f82f8a-f16f-4661-8db2-f3b7de3ad1da","block_type":"box","text":"rate, and it has been more volatile than other benchmark","page_number":147,"box":{"x":117,"y":614,"width":416,"height":11}},{"id":"cbc70d84-0def-418c-8eb2-6f8455699e1b","block_type":"box","text":"or market rates, such as three-month LIBOR,","page_number":147,"box":{"x":534,"y":614,"width":333,"height":11}},{"id":"498c938c-c52e-4c1c-8f68-477fa00383d4","block_type":"box","text":"during certain periods. For these reasons, among other","page_number":147,"box":{"x":116,"y":630,"width":402,"height":12}},{"id":"ad5437d4-9e77-4568-b26e-fd3dd1dfa977","block_type":"box","text":"s, there is no assurance that SOFR, or rates","page_number":147,"box":{"x":518,"y":630,"width":326,"height":11}},{"id":"b43ee148-c7e7-45c6-8480-13d91bd5afd2","block_type":"box","text":"derived from SOFR, will perform in the same or simila","page_number":147,"box":{"x":116,"y":645,"width":390,"height":12}},{"id":"b1e75cd5-83cf-4468-910b-f931fe636536","block_type":"box","text":"r way as LIBOR would have performed at any time,","page_number":147,"box":{"x":507,"y":645,"width":377,"height":12}},{"id":"dcac0bf8-b013-4e3a-82f8-041107f02a19","block_type":"box","text":"and there is no assurance that SOFR-based rates will","page_number":147,"box":{"x":116,"y":661,"width":389,"height":9}},{"id":"61b0d7ca-0351-45d0-9d08-47678f1852b4","block_type":"box","text":"be a suitable substitute for LIBOR. SOFR has a","page_number":147,"box":{"x":512,"y":661,"width":345,"height":9}},{"id":"0a6fe3bf-2e11-4217-824a-20f669ab593f","block_type":"box","text":"relatively limited history, having been first published","page_number":147,"box":{"x":117,"y":676,"width":372,"height":12}},{"id":"4a456a3d-f33a-4542-86c5-feaa1a89c941","block_type":"box","text":"in April 2018. The future performance of SOFR, and","page_number":147,"box":{"x":495,"y":676,"width":377,"height":12}},{"id":"ec3b022c-0080-41c2-8e5a-f59a53a6d555","block_type":"box","text":"SOFR-based reference rates, cannot be predicted bas","page_number":147,"box":{"x":116,"y":692,"width":396,"height":12}},{"id":"9e42a4ea-6ac6-4b55-b442-4be7b82cfb96","block_type":"box","text":"ed on SOFR’s history or otherwise. Levels of","page_number":147,"box":{"x":513,"y":692,"width":326,"height":12}},{"id":"0427adf1-bcfc-4463-a3c6-1975e984c3c6","block_type":"box","text":"SOFR in the future may bear little or no relation to hi","page_number":147,"box":{"x":116,"y":707,"width":379,"height":12}},{"id":"3236e848-fde0-498f-ab99-a8a0bf3aa01a","block_type":"box","text":"storical levels of SOFR,","page_number":147,"box":{"x":496,"y":707,"width":170,"height":11}},{"id":"4adb85d2-81d6-4952-a33e-32091f2561de","block_type":"box","text":"LIBOR or other rates. There","page_number":147,"box":{"x":673,"y":707,"width":203,"height":10}},{"id":"5179b06a-2c1d-4f48-bb5d-b12804e701a4","block_type":"box","text":"can also be no assurance that SOFR will not be discont","page_number":147,"box":{"x":116,"y":723,"width":404,"height":9}},{"id":"a00fabe3-c48d-4d34-acab-e0921fb266dd","block_type":"box","text":"inued or fundamentally alter","page_number":147,"box":{"x":521,"y":723,"width":202,"height":12}},{"id":"ebda941a-9c0b-4a8b-b79f-5775f2265e77","block_type":"box","text":"ed in a manner that is","page_number":147,"box":{"x":724,"y":723,"width":157,"height":9}},{"id":"8e39834b-269c-4230-98bd-3d885ba813cb","block_type":"box","text":"materially adverse to the interests of the Fund.","page_number":147,"box":{"x":117,"y":738,"width":336,"height":12}},{"id":"d7d0acad-155a-4fc5-9993-a6cd153cb0b7","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have","page_number":147,"box":{"x":117,"y":769,"width":763,"height":12}},{"id":"56951d06-89d3-413b-a4ef-a215bcded2ca","block_type":"box","text":"been the subject of ongoing national and international regulatory reform, including under the European","page_number":147,"box":{"x":117,"y":785,"width":759,"height":12}},{"id":"f5a2f4ec-6aa8-47e4-a042-a8a7a898ad9a","block_type":"box","text":"Union (“EU”) regulation on indices used as benchmarks in financial instruments and financial contracts","page_number":147,"box":{"x":117,"y":800,"width":759,"height":12}},{"id":"0ff46d64-b4ba-475c-ab74-a2fcbc04e7f8","block_type":"box","text":"(known as the “Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United","page_number":147,"box":{"x":117,"y":816,"width":748,"height":12}},{"id":"01e686f0-9491-4377-a914-a7c89805c548","block_type":"box","text":"Kingdom (“UK”) law by virtue of the EU (Withdrawal) Act 2018 (as amended), subject to amendments","page_number":147,"box":{"x":117,"y":831,"width":756,"height":12}},{"id":"01ecb2df-0e19-4c98-96ac-e59791e5e3b7","block_type":"box","text":"made by the Benchmarks (Amendment and Transitional Provision) (EU Exit) Regulations 2019 (SI","page_number":147,"box":{"x":117,"y":847,"width":733,"height":12}},{"id":"d4abf536-ebe0-4193-8cc4-feb1106c269d","block_type":"box","text":"2019/657) and other statutory instruments. Following the implementation of these reforms, the manner","page_number":147,"box":{"x":116,"y":862,"width":765,"height":12}},{"id":"ce76a615-4c81-4312-8bbc-ceddd6127985","block_type":"box","text":"of administration of benchmarks has changed and may further change in the future, with the result that","page_number":147,"box":{"x":116,"y":878,"width":766,"height":12}},{"id":"39ec7755-5c24-4067-b939-dd07b2c24816","block_type":"box","text":"II-88","page_number":147,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"96edfcfe-31f1-4e07-a9bb-a1ff6dfa7493","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":147,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"58978f19-eb23-426a-ac50-ae0293fa9661","block_type":"box","text":"relevant benchmarks may perform differently than in the past, the use of benchmarks that are not","page_number":148,"box":{"x":117,"y":87,"width":726,"height":12}},{"id":"1f9448e3-5c2a-490e-a4ca-c2ab2f8476be","block_type":"box","text":"compliant with the new standards by certain supervised entities may be restricted, and certain","page_number":148,"box":{"x":116,"y":103,"width":702,"height":12}},{"id":"7445bb35-f97a-422e-9ca9-cb3f02057a13","block_type":"box","text":"benchmarks may be eliminated entirely. Such changes could cause increased market volatility and","page_number":148,"box":{"x":117,"y":118,"width":737,"height":12}},{"id":"ac2872f5-ca72-43e0-8345-1f533b7adb81","block_type":"box","text":"disruptions in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally,","page_number":148,"box":{"x":116,"y":134,"width":749,"height":12}},{"id":"050dd4b0-adef-463e-922d-5bef95999785","block_type":"box","text":"there could be other consequences which cannot be predicted.","page_number":148,"box":{"x":116,"y":149,"width":472,"height":12}},{"id":"91133647-acae-4cec-ad0c-99beb43adfa8","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":148,"box":{"x":116,"y":179,"width":479,"height":12}},{"id":"435ef8f6-718e-4d8c-891d-9c97dde4db5c","block_type":"box","text":"Under repurchase agreements and","page_number":148,"box":{"x":597,"y":180,"width":264,"height":11}},{"id":"99767d6f-5f8e-4225-85ad-737a73d094c6","block_type":"box","text":"purchase and sale contracts, the other party agrees, upon entering into the contract with a Fund, to","page_number":148,"box":{"x":117,"y":194,"width":740,"height":12}},{"id":"bb78b583-a9fe-4831-b61e-8976db64386c","block_type":"box","text":"repurchase a security sold to the Fund at a mutually agreed-upon time and price in a specified","page_number":148,"box":{"x":117,"y":209,"width":703,"height":12}},{"id":"2ef5c41b-583d-4e3f-ab1d-2f952d6c8d2f","block_type":"box","text":"currency, thereby determining the yield during the term of the agreement.","page_number":148,"box":{"x":116,"y":224,"width":549,"height":12}},{"id":"d951e262-296d-4aaf-a01d-daa5c1b5117d","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements","page_number":148,"box":{"x":116,"y":254,"width":751,"height":12}},{"id":"feb754a7-572c-46da-bfbd-8ef7f44fab3b","block_type":"box","text":"stipulate that securities are owned by the Fund and the purchaser receives any interest on the security","page_number":148,"box":{"x":116,"y":269,"width":766,"height":12}},{"id":"4e80aeff-9271-47dd-94d7-8dd3efe58b79","block_type":"box","text":"paid during the period. In the case of repurchase agreements, the prices at which the trades are","page_number":148,"box":{"x":117,"y":284,"width":717,"height":12}},{"id":"3e0796d2-d4d9-4656-9a18-442763de35bc","block_type":"box","text":"conducted do not reflect accrued interest on the underlying obligation; whereas, in the case of","page_number":148,"box":{"x":116,"y":299,"width":701,"height":12}},{"id":"74f97cfe-d96c-4219-8fe5-262cc92a8b04","block_type":"box","text":"purchase and sale contracts, the prices take into account accrued interest. A Fund may enter into","page_number":148,"box":{"x":117,"y":314,"width":728,"height":12}},{"id":"62bb0a7b-8c1b-4a18-8cf6-0529feac2fd1","block_type":"box","text":"“tri-party” repurchase agreements. In “tri-party” repurchase agreements, an unaffiliated third-party","page_number":148,"box":{"x":116,"y":329,"width":729,"height":12}},{"id":"66041e16-53dc-47e2-b837-68987c4d1aef","block_type":"box","text":"custodian maintains accounts to hold collateral for the Fund and its counterparties and, therefore, the","page_number":148,"box":{"x":116,"y":343,"width":756,"height":12}},{"id":"00ed2a66-0cf0-4c3c-9038-6d218ba59a9a","block_type":"box","text":"Fund may be subject to the credit risk of those custodians.","page_number":148,"box":{"x":117,"y":358,"width":438,"height":12}},{"id":"d8ff8775-bd50-4ba6-8a4e-a988f111cad2","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate","page_number":148,"box":{"x":116,"y":389,"width":758,"height":12}},{"id":"f7ab0c64-1b7b-433f-9269-af73bd8d3e28","block_type":"box","text":"of return insulated from market fluctuations during the term of the agreement, although such return","page_number":148,"box":{"x":116,"y":405,"width":737,"height":12}},{"id":"53ebc754-1bdf-4d87-86ee-3a7b121c0f73","block_type":"box","text":"may be affected by currency fluctuations. However, in the event of a default under a repurchase","page_number":148,"box":{"x":117,"y":420,"width":716,"height":12}},{"id":"590636e6-a139-42ef-ab4a-38b7f60f8ba4","block_type":"box","text":"agreement or under a purchase and sale contract, instead of the contractual fixed rate, the rate of","page_number":148,"box":{"x":116,"y":436,"width":730,"height":12}},{"id":"4d0f0f87-9633-4930-bd9e-f5392ca002f8","block_type":"box","text":"return to the Fund would be dependent upon intervening fluctuations of the market values of the","page_number":148,"box":{"x":117,"y":451,"width":716,"height":12}},{"id":"cc502cc5-fd8d-4c82-99c8-33cccf873ade","block_type":"box","text":"securities underlying the contract and the accrued interest on those securities. In such event, the Fund","page_number":148,"box":{"x":116,"y":467,"width":766,"height":12}},{"id":"90cacb64-7586-41b9-8594-207fc1e26a17","block_type":"box","text":"would have rights against the seller for breach of contract with respect to any losses arising from","page_number":148,"box":{"x":116,"y":482,"width":721,"height":12}},{"id":"3e3724e4-4824-419e-9bfb-6d46a0b9d363","block_type":"box","text":"market fluctuations following the default.","page_number":148,"box":{"x":117,"y":498,"width":303,"height":12}},{"id":"4955f4e4-e5d5-465b-b416-061c47be3288","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may","page_number":148,"box":{"x":117,"y":529,"width":755,"height":12}},{"id":"59ed3e80-8550-4fe7-95eb-fa709a141c59","block_type":"box","text":"have longer terms, and may be construed to be collateralized loans by the purchaser to the seller","page_number":148,"box":{"x":117,"y":545,"width":726,"height":11}},{"id":"9851d498-daee-4d3f-a65c-4633d29e3b6f","block_type":"box","text":"secured by the securities transferred to the purchaser. In the case of a repurchase agreement, as a","page_number":148,"box":{"x":116,"y":560,"width":743,"height":12}},{"id":"a0c9b880-8502-4b19-ace5-7ce03f04eebb","block_type":"box","text":"purchaser, a Fund’s Manager or sub-adviser will monitor the creditworthiness of the seller, and a Fund","page_number":148,"box":{"x":117,"y":575,"width":764,"height":12}},{"id":"1f0165ff-cf3c-4bd0-9740-c459b04a787d","block_type":"box","text":"will require the seller to provide additional collateral if the market value of the securities falls below the","page_number":148,"box":{"x":116,"y":591,"width":761,"height":12}},{"id":"0168e243-0db9-40fb-aaee-25655b9f492a","block_type":"box","text":"repurchase price at any time during the term of the repurchase agreement. The Fund does not have","page_number":148,"box":{"x":117,"y":606,"width":747,"height":12}},{"id":"9018604f-bb60-40c0-82a9-74c05d3f7aaf","block_type":"box","text":"this right to seek additional collateral as a purchaser in the case of purchase and sale contracts. The","page_number":148,"box":{"x":116,"y":622,"width":750,"height":12}},{"id":"def46130-1280-4806-928d-2a417366f142","block_type":"box","text":"Fund’s Manager or sub-adviser will mark-to-market daily the value of the securities. Securities subject","page_number":148,"box":{"x":117,"y":637,"width":759,"height":12}},{"id":"680f08c3-efee-4743-bb65-34064903454a","block_type":"box","text":"to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":148,"box":{"x":116,"y":653,"width":712,"height":12}},{"id":"8eb909e9-7c55-473a-9bdc-d3f7c2ef9789","block_type":"box","text":"contracts will be held by the Fund’s custodian (or sub-custodian) in the Federal Reserve/Treasury","page_number":148,"box":{"x":116,"y":668,"width":725,"height":12}},{"id":"30455236-27f7-4932-a745-c86d5052b5ab","block_type":"box","text":"book-entry system or by another authorized securities depository.","page_number":148,"box":{"x":117,"y":684,"width":485,"height":12}},{"id":"b1bcad59-d0ae-4629-a630-fdf624499f0e","block_type":"box","text":"In the event of default by the seller under a repurchase agreement construed to be a collateralized","page_number":148,"box":{"x":117,"y":715,"width":729,"height":12}},{"id":"edec4f3d-1bae-4f03-8e27-f2989da8d98b","block_type":"box","text":"loan, the underlying securities are not owned by the Fund but only constitute collateral for the seller’s","page_number":148,"box":{"x":117,"y":730,"width":748,"height":13}},{"id":"fa374468-c2ba-4d27-b641-388f2374332c","block_type":"box","text":"obligation to pay the repurchase price. Therefore, the Fund may suffer time delays and incur costs or","page_number":148,"box":{"x":116,"y":746,"width":750,"height":12}},{"id":"3e528690-d268-4c5b-9e15-a7a83e7a832f","block_type":"box","text":"possible losses in connection with disposition of the collateral. If the seller becomes insolvent and","page_number":148,"box":{"x":117,"y":761,"width":721,"height":12}},{"id":"f8282384-003e-45f9-93a0-e1a3e4ff6bd9","block_type":"box","text":"subject to liquidation or reorganization under applicable bankruptcy or other laws, a Fund’s ability to","page_number":148,"box":{"x":116,"y":777,"width":739,"height":12}},{"id":"f6c3f317-0d1d-405d-ab71-d10f67eee7d4","block_type":"box","text":"dispose of the underlying securities may be restricted. Finally, it is possible that a Fund may not be","page_number":148,"box":{"x":116,"y":792,"width":733,"height":13}},{"id":"8954be42-8675-47a3-87e6-b36b2fb2613b","block_type":"box","text":"able to substantiate its interest in the underlying securities. To minimize this risk, the securities","page_number":148,"box":{"x":116,"y":808,"width":701,"height":12}},{"id":"c8e6f2eb-05a0-4e61-bb19-d2276964f613","block_type":"box","text":"underlying the repurchase agreement will be held by the applicable custodian at all times in an amount","page_number":148,"box":{"x":117,"y":824,"width":761,"height":12}},{"id":"1f9c5ce4-d1f7-42d5-ad03-4fc9ecde63ff","block_type":"box","text":"at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":148,"box":{"x":116,"y":839,"width":744,"height":12}},{"id":"9f504419-ee23-4a36-9342-ec13634f76fb","block_type":"box","text":"securities, a Fund may suffer a loss to the extent proceeds from the sale of the underlying securities","page_number":148,"box":{"x":116,"y":854,"width":748,"height":13}},{"id":"40d5965b-44e9-44e5-bef9-83203e19da22","block_type":"box","text":"are less than the repurchase price.","page_number":148,"box":{"x":116,"y":870,"width":264,"height":12}},{"id":"eea7e305-69a6-427d-953e-82c4a676741f","block_type":"box","text":"II-89","page_number":148,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"fcda6197-7c63-4897-9129-37715901eea4","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":148,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"92c34bea-7e7d-46b6-9a0a-457244239d1f","block_type":"box","text":"In any repurchase transaction to which a Fund is a party, collateral for a repurchase agreement may","page_number":149,"box":{"x":117,"y":87,"width":747,"height":12}},{"id":"6ed179cc-6b16-487f-bea9-7293f0c3fc15","block_type":"box","text":"include cash items and obligations issued by the U.S. Government or its agencies or instrumentalities.","page_number":149,"box":{"x":117,"y":102,"width":762,"height":13}},{"id":"87716a9f-4b68-4164-a8b1-43b081a921c0","block_type":"box","text":"For certain Funds, however, collateral may include instruments other than cash items and obligations","page_number":149,"box":{"x":117,"y":118,"width":755,"height":12}},{"id":"b4517632-c940-42c0-a2eb-e7eb6d89adc3","block_type":"box","text":"issued by the U.S. Government or its agencies or instrumentalities, including securities that the Fund","page_number":149,"box":{"x":117,"y":134,"width":752,"height":12}},{"id":"fd5c5f59-ec55-4157-9d37-26202370bfe6","block_type":"box","text":"could not hold directly under its investment strategies without the repurchase obligation.","page_number":149,"box":{"x":116,"y":149,"width":657,"height":12}},{"id":"89f05562-217c-4d5e-b80b-b6ed85ede0e0","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower","page_number":149,"box":{"x":116,"y":180,"width":770,"height":12}},{"id":"f0f1a19a-0833-47fe-87aa-471923c1ad2f","block_type":"box","text":"quality collateral and collateral with longer maturities may be subject to greater price fluctuations than","page_number":149,"box":{"x":116,"y":196,"width":757,"height":12}},{"id":"89df2265-9eaa-4a22-bc3a-0c33caec0afd","block_type":"box","text":"higher quality collateral and collateral with shorter maturities. If the repurchase agreement counterparty","page_number":149,"box":{"x":117,"y":211,"width":769,"height":12}},{"id":"141b852b-ac15-46d6-8b1b-6e6f3e30bcfd","block_type":"box","text":"were to default, lower quality collateral may be more difficult to liquidate than higher quality collateral.","page_number":149,"box":{"x":116,"y":227,"width":755,"height":12}},{"id":"d5ffcd4a-209a-4026-83b1-8174120ef822","block_type":"box","text":"Should the counterparty default and the amount of collateral not be sufficient to cover the","page_number":149,"box":{"x":116,"y":242,"width":666,"height":12}},{"id":"d7cbc1cb-4faa-43ef-8bbe-26c3926972b4","block_type":"box","text":"counterparty’s repurchase obligation, a Fund would retain the status of an unsecured creditor of the","page_number":149,"box":{"x":116,"y":258,"width":744,"height":12}},{"id":"0a7c7dd8-06d8-4fcb-b3af-ff679a4358e4","block_type":"box","text":"counterparty (","page_number":149,"box":{"x":116,"y":273,"width":103,"height":12}},{"id":"68b24a6f-1338-41dd-adb5-b8ff4a31287c","block_type":"box","text":"i.e.","page_number":149,"box":{"x":220,"y":273,"width":20,"height":10}},{"id":"54f969c9-7171-447c-9d01-85640645ba54","block_type":"box","text":", the position the Fund would normally be in if it were to hold, pursuant to its","page_number":149,"box":{"x":244,"y":273,"width":565,"height":12}},{"id":"db206f52-e026-4a45-8ebb-66b696a5b580","block_type":"box","text":"investment policies, other unsecured debt securities of the defaulting counterparty) with respect to the","page_number":149,"box":{"x":117,"y":289,"width":760,"height":12}},{"id":"0f7c396f-c693-457c-a162-c4c64f2d8ce5","block_type":"box","text":"amount of the shortfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the","page_number":149,"box":{"x":116,"y":304,"width":752,"height":12}},{"id":"be6a952b-24ac-48d1-9c9d-f5550166beee","block_type":"box","text":"principal and income involved in the transaction.","page_number":149,"box":{"x":117,"y":320,"width":361,"height":12}},{"id":"3c8b64fe-2dcc-4aaf-aba5-176a94ea20a2","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and","page_number":149,"box":{"x":117,"y":351,"width":761,"height":12}},{"id":"517b9442-37ea-468d-b3e5-17190fbb2240","block_type":"box","text":"certain of their affiliates to include in certain financial contracts, including many repurchase agreements","page_number":149,"box":{"x":116,"y":366,"width":771,"height":12}},{"id":"60d953d5-786f-4aab-9b92-2dfb788c7a68","block_type":"box","text":"and purchase and sale contracts, terms that delay or restrict the rights of counterparties, such as a","page_number":149,"box":{"x":116,"y":382,"width":738,"height":12}},{"id":"7ec8ee63-48a0-4a52-a118-bc15ab63d30a","block_type":"box","text":"Fund, to terminate such agreements, take foreclosure action, exercise other default rights or restrict","page_number":149,"box":{"x":117,"y":397,"width":744,"height":12}},{"id":"e8de210c-284c-4a83-8d30-1ee66f9dc271","block_type":"box","text":"transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain","page_number":149,"box":{"x":116,"y":413,"width":748,"height":12}},{"id":"5c76a300-5428-446f-91d4-3d8c7c8daf49","block_type":"box","text":"types of resolution or insolvency proceedings. It is possible that these new requirements, as well as","page_number":149,"box":{"x":116,"y":428,"width":743,"height":12}},{"id":"0185b851-64af-45ad-b05c-04a3d532f72b","block_type":"box","text":"potential additional government regulation and other developments in the market, could adversely","page_number":149,"box":{"x":117,"y":444,"width":729,"height":12}},{"id":"b4d862a5-08ae-4e5b-8010-6606666a7ca9","block_type":"box","text":"affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale contracts or","page_number":149,"box":{"x":116,"y":459,"width":768,"height":12}},{"id":"1c5da54c-331d-45ae-bbc1-71b048b389a7","block_type":"box","text":"to realize amounts to be received under such agreements. The SEC has also finalized rules that will","page_number":149,"box":{"x":116,"y":475,"width":747,"height":12}},{"id":"23025287-a681-4f70-a5b0-ebae7961dbb9","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally","page_number":149,"box":{"x":117,"y":490,"width":770,"height":12}},{"id":"3357336c-0e64-4749-8ed1-2173a2fa9a8e","block_type":"box","text":"cleared. Compliance with these rules is expected to be required by the middle of 2027. Although the","page_number":149,"box":{"x":116,"y":506,"width":747,"height":12}},{"id":"c2cf86e8-5616-4785-bdd0-947737a60974","block_type":"box","text":"impact of these rules on the Funds is difficult to predict, they may reduce the availability or increase the","page_number":149,"box":{"x":117,"y":521,"width":770,"height":12}},{"id":"fa8a5ea5-57b4-4f6b-9985-a51025c52971","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":149,"box":{"x":116,"y":537,"width":563,"height":12}},{"id":"c6171e23-b560-40cf-be92-a8e0c398c2fe","block_type":"box","text":"Restricted Securities.","page_number":149,"box":{"x":116,"y":568,"width":177,"height":9}},{"id":"e716fd59-ea91-4480-91ab-076bd5abdbc3","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the","page_number":149,"box":{"x":293,"y":568,"width":539,"height":12}},{"id":"bd676787-c6d0-4d00-b070-3c00fcca58fe","block_type":"box","text":"Securities Act (“restricted securities”), which may include securities in private companies and","page_number":149,"box":{"x":116,"y":583,"width":694,"height":12}},{"id":"2d891a64-3064-4a35-a118-0d688ca63d79","block_type":"box","text":"Rule 144A Securities. Restricted securities may be sold in private placement transactions between","page_number":149,"box":{"x":117,"y":599,"width":736,"height":12}},{"id":"de7f8b18-e7f1-468d-8c68-2c9e79f95fb9","block_type":"box","text":"issuers and their purchasers, including through private negotiated transactions between the issuer and","page_number":149,"box":{"x":117,"y":614,"width":765,"height":12}},{"id":"da85432b-84ec-4f08-8053-e6327ebb885f","block_type":"box","text":"their purchasers, such as the Funds, and may be neither listed on an exchange nor traded in other","page_number":149,"box":{"x":116,"y":630,"width":736,"height":12}},{"id":"fee67009-bd5e-4070-b66b-7c5c974fde9d","block_type":"box","text":"established markets. In many cases, privately placed securities may not be freely transferable under","page_number":149,"box":{"x":116,"y":645,"width":749,"height":12}},{"id":"c3e610c8-2c25-493d-800c-486190cd434e","block_type":"box","text":"the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of these","page_number":149,"box":{"x":116,"y":661,"width":708,"height":12}},{"id":"98291b1a-4f16-4e39-8740-5106f6193d85","block_type":"box","text":"securities are new and complex, and trade only among institutions; the markets for these securities are","page_number":149,"box":{"x":116,"y":676,"width":764,"height":12}},{"id":"b9c71d12-8c02-4271-a164-4fc48638f104","block_type":"box","text":"still developing and may not function as efficiently as established markets. Typically, investments in","page_number":149,"box":{"x":116,"y":692,"width":736,"height":12}},{"id":"ce89495f-89f9-4005-b40e-9043c6fe1c70","block_type":"box","text":"private companies are in restricted securities that are not traded in public markets and subject to","page_number":149,"box":{"x":117,"y":707,"width":714,"height":12}},{"id":"68869f4c-b890-49ce-b305-8500f09600f5","block_type":"box","text":"substantial holding periods, so that a Fund may not be able to resell some of its holdings for extended","page_number":149,"box":{"x":116,"y":723,"width":755,"height":12}},{"id":"d9ef4e6d-c33a-4367-9f01-beb6c9999a3b","block_type":"box","text":"periods, which may be several years. There can be no assurance that a Fund will be able to realize the","page_number":149,"box":{"x":117,"y":738,"width":763,"height":12}},{"id":"996a0d75-6b36-496e-8648-7328613d00c8","block_type":"box","text":"value of such restricted securities in a timely manner or at all. As a result of the absence of a public","page_number":149,"box":{"x":116,"y":754,"width":736,"height":12}},{"id":"2af2bde6-d82f-4f43-adab-882f690a5582","block_type":"box","text":"trading market and the potential bespoke nature on certain transactions, restricted securities may be","page_number":149,"box":{"x":116,"y":769,"width":745,"height":12}},{"id":"29c1af67-0bb2-4df3-857e-3c914bffd2c5","block_type":"box","text":"deemed to be illiquid investments or less liquid investments and may be more difficult to value than","page_number":149,"box":{"x":116,"y":785,"width":734,"height":12}},{"id":"f768be32-f2eb-43a7-8ed3-8fb008df2e3a","block_type":"box","text":"publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":149,"box":{"x":117,"y":800,"width":751,"height":12}},{"id":"08e88bea-3b7b-4cbd-9cd6-54ca8dd771b0","block_type":"box","text":"transactions, the prices realized from the sales, due to lack of liquidity, could be less than those","page_number":149,"box":{"x":116,"y":816,"width":708,"height":12}},{"id":"4a5c005b-2450-4188-a1b4-2d377717dfb6","block_type":"box","text":"originally paid by the Fund or less than their fair market value. The amount of any discount may vary","page_number":149,"box":{"x":116,"y":831,"width":749,"height":12}},{"id":"255048e5-b8fe-450f-8df3-2ffbe362164c","block_type":"box","text":"depending on the security type, the character of the issuer, which party (if any) will bear the expenses","page_number":149,"box":{"x":116,"y":847,"width":760,"height":12}},{"id":"eb580d65-24e8-4e42-a35b-aa53ef4d0881","block_type":"box","text":"of registering the restricted security, and prevailing market conditions. In addition, issuers whose","page_number":149,"box":{"x":116,"y":862,"width":720,"height":12}},{"id":"38d8aa5d-0720-4055-b5e1-5306f02f95e6","block_type":"box","text":"securities are not publicly traded or who are not otherwise publicly listed may not be subject to the","page_number":149,"box":{"x":116,"y":878,"width":732,"height":12}},{"id":"bbd625a2-0e03-498d-9fdb-adb57956e5a3","block_type":"box","text":"II-90","page_number":149,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"c9ce5287-1d69-4fc5-97b1-1e8fcda59437","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":149,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a1aea841-c590-4bbf-a994-93faf067b92c","block_type":"box","text":"disclosure and other investor protection requirements that may be applicable if their securities were","page_number":150,"box":{"x":116,"y":87,"width":742,"height":12}},{"id":"9ecdcfad-0a58-4a19-ab1e-32aefb063b1a","block_type":"box","text":"publicly traded. If any privately placed securities held by a Fund are required to be registered under the","page_number":150,"box":{"x":117,"y":102,"width":769,"height":13}},{"id":"10ff79f2-26eb-4ce4-a196-f61ef1d15d78","block_type":"box","text":"securities laws of one or more jurisdictions before being resold, the Fund may be required to bear the","page_number":150,"box":{"x":116,"y":118,"width":757,"height":12}},{"id":"76989d2d-d5f9-4128-81bd-05a02d77b176","block_type":"box","text":"expenses of registration. Where registration is required for restricted securities, a considerable time","page_number":150,"box":{"x":116,"y":134,"width":743,"height":12}},{"id":"967fef7d-1d0e-4c0a-ace2-4ad607b7442c","block_type":"box","text":"period may elapse between the time the Fund decides to sell the security and the time it is actually","page_number":150,"box":{"x":117,"y":149,"width":736,"height":12}},{"id":"6f490563-209f-411d-a81f-fb61bf0bc79f","block_type":"box","text":"permitted to sell the security under an effective registration statement. If during such period, adverse","page_number":150,"box":{"x":117,"y":165,"width":749,"height":12}},{"id":"41ac428a-f4a9-454f-b119-b2dbe45b231c","block_type":"box","text":"market conditions were to develop, the Fund might obtain less favorable pricing terms than when it","page_number":150,"box":{"x":117,"y":180,"width":736,"height":12}},{"id":"6ae3b70c-b01c-4e04-be95-cb0be6ae65ff","block_type":"box","text":"decided to sell the security. In addition, the Fund may be deemed to be an “underwriter” for purposes","page_number":150,"box":{"x":116,"y":196,"width":755,"height":12}},{"id":"00c3a11c-b226-4b12-a9de-7cd76c089a74","block_type":"box","text":"of the Securities Act when selling restricted securities. If so, the Fund may be liable to purchasers of","page_number":150,"box":{"x":116,"y":211,"width":747,"height":12}},{"id":"202ebfc5-e8d9-40d2-bf5d-c30736eecdc4","block_type":"box","text":"the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":150,"box":{"x":116,"y":227,"width":722,"height":12}},{"id":"959b45ae-b4fb-4ebd-93bf-094ee721b764","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other","page_number":150,"box":{"x":117,"y":242,"width":769,"height":12}},{"id":"002e7243-c943-431b-a1d0-b0d3f55bd0ee","block_type":"box","text":"transaction costs that are higher than those for transactions in unrestricted securities. Certain of the","page_number":150,"box":{"x":116,"y":258,"width":744,"height":12}},{"id":"68d3ee58-455b-49c8-a4e8-4ba9c0fbb6ed","block_type":"box","text":"Fund’s investments in private placements may consist of direct investments and may include","page_number":150,"box":{"x":117,"y":273,"width":692,"height":12}},{"id":"b3da53b0-3239-46f8-b461-472303eb00ca","block_type":"box","text":"investments in smaller, less seasoned issuers, which may involve greater risks. Issuers of restricted","page_number":150,"box":{"x":117,"y":289,"width":744,"height":12}},{"id":"125ef0bc-76c7-4a9e-92c3-538feda98198","block_type":"box","text":"securities may not be subject to SEC reporting requirements, may not be required to maintain their","page_number":150,"box":{"x":116,"y":304,"width":737,"height":12}},{"id":"1c2a710c-c4f9-4d31-b518-44c3bece1cc8","block_type":"box","text":"accounting records in accordance with generally accepted accounting principles, and may not be","page_number":150,"box":{"x":116,"y":320,"width":724,"height":12}},{"id":"34cee3eb-42df-49f0-a4f8-0bb757b708d7","block_type":"box","text":"required to maintain effective internal controls over financial reporting. As a result, BlackRock may not","page_number":150,"box":{"x":117,"y":335,"width":760,"height":12}},{"id":"bf6b63fc-ec7e-470e-9d62-3a1edae09be0","block_type":"box","text":"have timely or accurate information about the business, financial condition and results of operations of","page_number":150,"box":{"x":117,"y":351,"width":762,"height":12}},{"id":"0720f78d-503a-418f-825d-0ef0c5e5e170","block_type":"box","text":"such issuers, and investments in securities of such issuers may involve a high degree of business and","page_number":150,"box":{"x":116,"y":366,"width":764,"height":12}},{"id":"d0f090fb-c41f-4ca0-b479-b0d100173053","block_type":"box","text":"financial risk and may result in substantial losses to the Fund. Such issuers may also have limited","page_number":150,"box":{"x":116,"y":382,"width":729,"height":12}},{"id":"bcac0c16-bd9b-4fd0-87fb-b8edd079d8a8","block_type":"box","text":"product lines, markets or financial resources, or they may be dependent on a limited management","page_number":150,"box":{"x":117,"y":397,"width":731,"height":12}},{"id":"2bcce7ab-20bb-492c-bac2-84ce906c9eeb","block_type":"box","text":"group.","page_number":150,"box":{"x":116,"y":415,"width":52,"height":10}},{"id":"800473a2-d16a-40ba-a426-6c36743153ee","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":150,"box":{"x":117,"y":444,"width":740,"height":12}},{"id":"5d27bd7a-1643-4b75-a6f3-58726b21b7e8","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced","page_number":150,"box":{"x":117,"y":459,"width":687,"height":12}},{"id":"680da48c-73e8-4948-9057-823be5022e41","block_type":"box","text":"proportionately as the Fund’s net assets grow from new or additional investments made in the Fund by","page_number":150,"box":{"x":117,"y":475,"width":766,"height":12}},{"id":"aecf8c50-5050-4b2a-a601-494085aff9f9","block_type":"box","text":"other shareholders. The issuer of a private placement may later register those shares for public sale in","page_number":150,"box":{"x":116,"y":490,"width":765,"height":12}},{"id":"be357860-2837-4625-aa5b-2b5d0798d221","block_type":"box","text":"an IPO, but there is no guarantee that an IPO will ever be completed. Even after an IPO, there may be","page_number":150,"box":{"x":116,"y":506,"width":766,"height":12}},{"id":"4e37a20b-a69c-4419-98c9-b0141672195d","block_type":"box","text":"a limited trading market for securities of that issuer, including any direct investment by a Fund, or the","page_number":150,"box":{"x":116,"y":521,"width":752,"height":12}},{"id":"ecfad78b-98bf-476c-b019-7d52bd222ce6","block_type":"box","text":"Fund may be subject to contractual limitations on its ability to resell its existing securities following an","page_number":150,"box":{"x":117,"y":537,"width":754,"height":12}},{"id":"86bd6237-042a-408e-9015-b5bdd6c133a1","block_type":"box","text":"IPO. The inability of an applicable issuer of a restricted security to complete an IPO or offer other","page_number":150,"box":{"x":117,"y":552,"width":723,"height":12}},{"id":"3260d914-0771-4dff-a708-94c672562df0","block_type":"box","text":"liquidity opportunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":150,"box":{"x":117,"y":568,"width":708,"height":12}},{"id":"32e7afe4-7454-4268-a2ff-bf30a4fdc558","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making","page_number":150,"box":{"x":117,"y":583,"width":756,"height":12}},{"id":"a82fcd85-6cf2-4a36-af8b-6f98040b0545","block_type":"box","text":"investments in such securities, a Fund may obtain access to material nonpublic information, which may","page_number":150,"box":{"x":117,"y":599,"width":770,"height":12}},{"id":"a1cb8aed-5922-4b40-b164-871d784cc7ef","block_type":"box","text":"restrict the Fund’s ability to conduct portfolio transactions in such securities. The activity of identifying,","page_number":150,"box":{"x":117,"y":614,"width":759,"height":12}},{"id":"e2d76380-be25-4bbd-8b73-15785a99ced9","block_type":"box","text":"completing, and realizing upon attractive investments in restricted securities is highly competitive and","page_number":150,"box":{"x":116,"y":630,"width":756,"height":12}},{"id":"29fdf911-3862-46cd-bd1b-0e891ccece4a","block_type":"box","text":"involves a high degree of uncertainty. A Fund will be competing for investments against other similarly","page_number":150,"box":{"x":117,"y":645,"width":761,"height":12}},{"id":"33cef63f-0cbd-4b0e-991a-918b6ef1c380","block_type":"box","text":"situated investors. It is possible that competition for appropriate investment opportunities may increase,","page_number":150,"box":{"x":116,"y":661,"width":766,"height":12}},{"id":"45de0862-0fb8-4e95-9f8b-05c22345c3ad","block_type":"box","text":"thus potentially reducing the number of investment opportunities available to a Fund and adversely","page_number":150,"box":{"x":116,"y":676,"width":733,"height":12}},{"id":"14b03d47-7c3c-4396-a65b-6a5a58a2fc8f","block_type":"box","text":"affecting the terms upon which investments can be made. There is no assurance that investment","page_number":150,"box":{"x":116,"y":692,"width":719,"height":12}},{"id":"9f94f508-e8d3-4523-9006-52b7ed03f11f","block_type":"box","text":"opportunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":150,"box":{"x":116,"y":707,"width":759,"height":12}},{"id":"45b5475f-ac6d-4f6a-89cd-29e10d8d0499","block_type":"box","text":"especially as that Fund grows in size.","page_number":150,"box":{"x":116,"y":723,"width":277,"height":12}},{"id":"477d00fd-cd65-4a6e-ac3e-384700aa1d80","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular,","page_number":150,"box":{"x":116,"y":754,"width":716,"height":12}},{"id":"3b835bb9-a402-4fc7-b176-1df1c68906ae","block_type":"box","text":"restricted securities issued by private companies) and thus they may be considered “illiquid”. Each","page_number":150,"box":{"x":117,"y":769,"width":728,"height":12}},{"id":"e406267c-eb2b-49fb-ba24-63998bd44623","block_type":"box","text":"Fund values restricted securities in accordance with BlackRock’s valuation policies and procedures,","page_number":150,"box":{"x":117,"y":785,"width":738,"height":12}},{"id":"724e7786-8bb9-4817-aae3-4d8e61b8fb12","block_type":"box","text":"which are designed to value investments such that they accurately reflect fair value. Due to the","page_number":150,"box":{"x":116,"y":800,"width":704,"height":12}},{"id":"77fde1d7-7ca0-4d24-87e6-c5b24f4b314e","block_type":"box","text":"inherent uncertainty and subjectivity of determining the fair value of investments that do not have a","page_number":150,"box":{"x":117,"y":816,"width":731,"height":12}},{"id":"65981698-15ae-4581-955d-1f08102fc576","block_type":"box","text":"readily available market value, the fair value of a Fund’s private investments may differ significantly","page_number":150,"box":{"x":117,"y":831,"width":739,"height":12}},{"id":"1581a19b-a2e8-4f30-aa6a-7f4c9f5cafad","block_type":"box","text":"from the values that would have been used had a readily available market value existed for such","page_number":150,"box":{"x":116,"y":847,"width":721,"height":12}},{"id":"5503a87a-3acf-4471-bbf8-56f04c6defb3","block_type":"box","text":"investments and may differ materially from the amounts the Fund may realize on any dispositions of","page_number":150,"box":{"x":117,"y":862,"width":745,"height":12}},{"id":"9f57350f-377c-4925-b357-f057762ea35c","block_type":"box","text":"such investments. Differences in the value of the Fund’s private investments could result in the Fund’s","page_number":150,"box":{"x":116,"y":878,"width":763,"height":12}},{"id":"b98dec83-5f31-46cb-91f4-7750b8e71876","block_type":"box","text":"II-91","page_number":150,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"735213e1-1c80-4177-8309-80b88d2a6ab1","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":150,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"bd560b39-299f-4b0f-9dbf-26f9055f831e","block_type":"box","text":"shareholder transactions being effected at a NAV that does not accurately reflect the underlying value","page_number":151,"box":{"x":116,"y":87,"width":761,"height":12}},{"id":"6a85607f-72c2-46d5-ba54-662c5b489a9e","block_type":"box","text":"of the Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing","page_number":151,"box":{"x":116,"y":102,"width":718,"height":13}},{"id":"7e008015-3fae-4bf3-84f3-410a20ebbda2","block_type":"box","text":"opportunities for shareholder arbitrage. The values used by the Fund to price its restricted securities","page_number":151,"box":{"x":116,"y":118,"width":747,"height":12}},{"id":"d976ceea-bb77-473e-ab24-0aab6481113f","block_type":"box","text":"may also differ from those used by other investment companies and investors to price the same","page_number":151,"box":{"x":117,"y":134,"width":715,"height":12}},{"id":"248ab462-6a61-4cb8-8757-4e65952fbcaf","block_type":"box","text":"restricted securities. In addition, the impact of changes in the market environment and other events on","page_number":151,"box":{"x":117,"y":149,"width":763,"height":12}},{"id":"c9c8b5b3-ca0a-4e94-ac9e-7f259d1995b1","block_type":"box","text":"the fair values of a Fund’s investments that have no readily available market values may differ from the","page_number":151,"box":{"x":116,"y":165,"width":769,"height":12}},{"id":"a145f885-0583-4faf-b049-3f0498c9acea","block_type":"box","text":"impact of such changes on the readily available market values for the Fund’s other investments. A","page_number":151,"box":{"x":117,"y":180,"width":732,"height":12}},{"id":"d7b14cda-9ea7-4e60-a9dd-ffc50aea28ba","block_type":"box","text":"Fund’s NAV could be adversely affected if the Fund’s determinations regarding the fair value of the","page_number":151,"box":{"x":117,"y":196,"width":738,"height":12}},{"id":"e3b19a87-8b44-461c-8a05-a7116524002f","block_type":"box","text":"Fund’s investments were materially higher than the investment’s actual market or fair value or the","page_number":151,"box":{"x":117,"y":211,"width":728,"height":12}},{"id":"9adb1cc9-0a80-4764-8272-46494b88b9d1","block_type":"box","text":"values that the Fund ultimately realizes upon the disposal of such investments.","page_number":151,"box":{"x":116,"y":227,"width":590,"height":12}},{"id":"b11c2148-522e-4008-93cb-1fb77ca14723","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":151,"box":{"x":116,"y":258,"width":400,"height":11}},{"id":"4ee95567-49aa-429e-8d6b-90830c50bb49","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":151,"box":{"x":116,"y":289,"width":271,"height":12}},{"id":"2da347ac-a732-4eb1-ad63-dacceff32ad5","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the","page_number":151,"box":{"x":389,"y":289,"width":481,"height":12}},{"id":"a26d9d16-f2e1-4405-9da7-f6fcf054b5ba","block_type":"box","text":"same parties with whom it may enter into repurchase agreements. Under a reverse repurchase","page_number":151,"box":{"x":116,"y":304,"width":711,"height":12}},{"id":"5d846988-551c-425f-afad-4cbd4d092b65","block_type":"box","text":"agreement, a Fund sells securities to another party and agrees to repurchase them at a particular date","page_number":151,"box":{"x":116,"y":320,"width":766,"height":12}},{"id":"58434b39-7702-4afd-bc59-a0047caafd98","block_type":"box","text":"and price. A Fund may enter into a reverse repurchase agreement when it is anticipated that the","page_number":151,"box":{"x":116,"y":335,"width":719,"height":12}},{"id":"98305ed8-53b4-4a48-b96e-ef667cdf0b32","block_type":"box","text":"interest income to be earned from the investment of the proceeds of the transaction is greater than the","page_number":151,"box":{"x":117,"y":351,"width":765,"height":12}},{"id":"daa0b940-389f-4cfb-90cd-bf9b0ce5c949","block_type":"box","text":"interest expense of the transaction.","page_number":151,"box":{"x":117,"y":366,"width":265,"height":12}},{"id":"b33f6fe7-ec8c-48fb-9792-2ebca86026c2","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":151,"box":{"x":116,"y":397,"width":772,"height":12}},{"id":"0b14f27e-a1d4-444a-b981-d582058885d4","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the","page_number":151,"box":{"x":117,"y":413,"width":771,"height":12}},{"id":"d58698f9-6e4b-498d-9b6d-1e17fcf5ddf0","block_type":"box","text":"investment of the proceeds will be less than the interest expense, (ii) the market value of the securities","page_number":151,"box":{"x":117,"y":428,"width":765,"height":12}},{"id":"2b48ce4f-dbf0-49c6-9b5e-9d6aa98f0f0f","block_type":"box","text":"retained in lieu of sale by a Fund may decline below","page_number":151,"box":{"x":117,"y":444,"width":390,"height":12}},{"id":"e9524422-ab5f-45cd-88ed-b16cb3ad82a6","block_type":"box","text":"the price of the securities the Fund has sold but is","page_number":151,"box":{"x":507,"y":444,"width":375,"height":12}},{"id":"35e4c810-7c73-42a1-a739-ab99bad46a89","block_type":"box","text":"obligated to repurchase, (iii) the market value of the securities sold will decline below the price at which","page_number":151,"box":{"x":116,"y":459,"width":770,"height":12}},{"id":"7a685ee3-4751-40ad-9d01-1a98367af4de","block_type":"box","text":"the Fund is required to repurchase them and (iv) the securities will not be returned to the Fund.","page_number":151,"box":{"x":116,"y":475,"width":710,"height":12}},{"id":"10d3364a-a253-49bf-91ec-6d75f0728eb2","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or","page_number":151,"box":{"x":117,"y":506,"width":731,"height":12}},{"id":"cccb9592-429a-4455-a36e-53f19ec7f6fc","block_type":"box","text":"becomes insolvent, such buyer or its trustee or receiver may receive an extension of time to determine","page_number":151,"box":{"x":117,"y":521,"width":765,"height":12}},{"id":"00e98408-43d7-4ec9-83bc-5a057f8f192a","block_type":"box","text":"whether to enforce a Fund’s obligations to repurchase the securities and the Fund’s use of the","page_number":151,"box":{"x":116,"y":537,"width":704,"height":12}},{"id":"0a79ce86-4008-4107-9731-7daa85e02f52","block_type":"box","text":"proceeds of the reverse repurchase agreement may effectively be restricted pending such decision.","page_number":151,"box":{"x":117,"y":552,"width":744,"height":12}},{"id":"38a115dc-f69d-4c00-9744-21530faf7ff6","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase","page_number":151,"box":{"x":117,"y":583,"width":710,"height":12}},{"id":"e4600962-d5a5-4745-962d-db3c917bccb6","block_type":"box","text":"agreements and similar financing transactions (e.g., recourse and non-recourse tender option bonds,","page_number":151,"box":{"x":116,"y":599,"width":755,"height":12}},{"id":"6af8da56-fa13-4c0e-9555-ff610c9feb4d","block_type":"box","text":"borrowed bonds) notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":151,"box":{"x":117,"y":614,"width":767,"height":12}},{"id":"f9cec00d-bf88-43d5-88aa-6ca39c959f67","block_type":"box","text":"Investment Company Act, provided that the Fund either (i) complies with the 300% asset coverage","page_number":151,"box":{"x":117,"y":630,"width":736,"height":12}},{"id":"ac18ab4a-546a-46f0-b9d1-ec066c7af7fa","block_type":"box","text":"ratio with respect to all such transactions and any other borrowings in the aggregate, or (ii) treats all","page_number":151,"box":{"x":117,"y":645,"width":744,"height":12}},{"id":"95c9d04a-7b93-47d6-9e89-dfd7d7f27326","block_type":"box","text":"such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives—Regulation of","page_number":151,"box":{"x":116,"y":661,"width":738,"height":12}},{"id":"e9033829-8e5d-486e-8f54-ef36011b5662","block_type":"box","text":"Derivatives—Rule 18f-4 under the Investment Company Act” above. The SEC has also finalized rules","page_number":151,"box":{"x":117,"y":676,"width":753,"height":12}},{"id":"b8f38222-a565-4164-8d57-b2ea556dbce3","block_type":"box","text":"that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":151,"box":{"x":116,"y":692,"width":680,"height":12}},{"id":"9c85d433-da8a-479a-978a-90d8348c1e01","block_type":"box","text":"agreements, to be centrally cleared. Compliance with these rules is expected to be required by the","page_number":151,"box":{"x":116,"y":707,"width":731,"height":12}},{"id":"a1bbaf59-1526-48a9-8d45-abe7e51defd4","block_type":"box","text":"middle of 2027. Although the impact of these rules on the Funds is difficult to predict, they may reduce","page_number":151,"box":{"x":117,"y":723,"width":757,"height":12}},{"id":"22e18604-ee44-4b71-895e-3d2a3b707aa5","block_type":"box","text":"the availability or increase the costs of such transactions and may adversely affect a Fund’s","page_number":151,"box":{"x":116,"y":738,"width":680,"height":12}},{"id":"4950e1f0-ef4f-400d-9e96-0eaf4b19b505","block_type":"box","text":"performance.","page_number":151,"box":{"x":117,"y":754,"width":96,"height":12}},{"id":"c497e27a-59e1-4138-adad-127ccf0403aa","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated","page_number":151,"box":{"x":116,"y":785,"width":701,"height":12}},{"id":"6a431231-3138-43ae-927f-5de88ca6e7c4","block_type":"box","text":"counterparties and certain of their affiliates to include in certain financial contracts, including many","page_number":151,"box":{"x":116,"y":800,"width":727,"height":12}},{"id":"667aabc2-d2f3-4420-8562-53109bbbce77","block_type":"box","text":"reverse repurchase agreements, terms that delay or restrict the rights of counterparties, such as a","page_number":151,"box":{"x":117,"y":816,"width":727,"height":12}},{"id":"17ddf193-6682-4132-a7ed-5338f3cce50c","block_type":"box","text":"Fund, to terminate such agreements, take foreclosure action, exercise other default rights or restrict","page_number":151,"box":{"x":117,"y":831,"width":744,"height":12}},{"id":"3bf35352-d5f0-4b80-9c8b-27b13eae7b4c","block_type":"box","text":"transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain","page_number":151,"box":{"x":116,"y":847,"width":748,"height":12}},{"id":"d0f9d0d0-daea-4d73-826b-a469a6ff194a","block_type":"box","text":"types of resolution or insolvency proceedings. It is possible that these requirements, as well as","page_number":151,"box":{"x":116,"y":862,"width":707,"height":12}},{"id":"9fa9b7f5-b887-483e-9706-90b37336f950","block_type":"box","text":"potential additional government regulation and other developments in the market, could adversely","page_number":151,"box":{"x":117,"y":878,"width":729,"height":12}},{"id":"d7e18ac6-d7f4-4ca9-a0c8-16d3eeeb82bf","block_type":"box","text":"II-92","page_number":151,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"b93ac809-da48-48bc-a2c5-3b2668d1ae2e","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":151,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8e67c06e-27b0-4842-b62d-3ee7249c25b0","block_type":"box","text":"affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize amounts to be","page_number":152,"box":{"x":116,"y":87,"width":765,"height":12}},{"id":"09563c67-3514-4b48-9855-54e3496c70e2","block_type":"box","text":"received under such agreements.","page_number":152,"box":{"x":117,"y":103,"width":253,"height":12}},{"id":"742ca5e5-43cc-478c-aa07-06eafb463d7c","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":152,"box":{"x":116,"y":134,"width":349,"height":12}},{"id":"b96635cb-de04-4a33-afd8-a966a73936b1","block_type":"box","text":"Certain Funds may participate in rights offerings and","page_number":152,"box":{"x":466,"y":134,"width":399,"height":12}},{"id":"933ee088-1583-48ab-b993-06ac59aa7de9","block_type":"box","text":"may purchase warrants, which are privileges issued by corporations enabling the owners to subscribe","page_number":152,"box":{"x":117,"y":149,"width":759,"height":12}},{"id":"053ed3a8-608c-4638-a996-dd351388ab58","block_type":"box","text":"to and purchase a specified number of shares of the corporation at a specified price during a specified","page_number":152,"box":{"x":116,"y":165,"width":763,"height":12}},{"id":"0ff970f1-0a5d-4a79-8d43-1faccfda5c12","block_type":"box","text":"period of time. Subscription rights normally have a short life span to expiration. The purchase of rights","page_number":152,"box":{"x":117,"y":180,"width":759,"height":12}},{"id":"af5b0ad9-190d-48ea-af7f-0305a06e4f3c","block_type":"box","text":"or warrants involves the risk that a Fund could lose the purchase value of a right or warrant if the right","page_number":152,"box":{"x":116,"y":196,"width":760,"height":12}},{"id":"d39ceb13-d2c0-4903-bb65-b0e6665da0d9","block_type":"box","text":"to subscribe to additional shares is not exercised prior to the rights’ and warrants’ expiration. Also, the","page_number":152,"box":{"x":116,"y":211,"width":760,"height":12}},{"id":"e77aa6fc-5044-4688-9bb5-37d70e278f53","block_type":"box","text":"purchase of rights and/or warrants involves the risk that the effective price paid for the right and/or","page_number":152,"box":{"x":117,"y":227,"width":732,"height":12}},{"id":"ebef11e4-f77e-4792-9add-de91057e7ff5","block_type":"box","text":"warrant added to the subscription price of the related security may exceed the value of the subscribed","page_number":152,"box":{"x":116,"y":242,"width":762,"height":12}},{"id":"22378680-d8d4-45fd-8166-4b6c72fd2aef","block_type":"box","text":"security’s market price such as when there is no movement in the level of the underlying security.","page_number":152,"box":{"x":116,"y":258,"width":728,"height":12}},{"id":"f21307f1-dd49-4e8f-a4e8-9ca7e2cc83a5","block_type":"box","text":"Buying a warrant does not make the Fund a shareholder of the underlying stock. The warrant holder","page_number":152,"box":{"x":117,"y":273,"width":747,"height":12}},{"id":"488301c6-49c9-4be4-ab69-e9522bd68372","block_type":"box","text":"has no voting or dividend rights with respect to the underlying stock. A warrant does not carry any right","page_number":152,"box":{"x":117,"y":289,"width":766,"height":12}},{"id":"58676562-9113-4bf0-9bee-bdb2e4e1e053","block_type":"box","text":"to assets of the issuer, and for this reason investments in warrants may be more speculative than other","page_number":152,"box":{"x":116,"y":304,"width":771,"height":12}},{"id":"17340aee-ab41-4427-9bd0-80e12a289f40","block_type":"box","text":"equity-based investments.","page_number":152,"box":{"x":116,"y":320,"width":200,"height":12}},{"id":"bae5f98a-eca4-43f4-8b2a-1eacb07699b4","block_type":"box","text":"Rule 144A Securities.","page_number":152,"box":{"x":116,"y":351,"width":170,"height":9}},{"id":"3d9c2209-a8bf-4607-b568-d45ededc4b4a","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":152,"box":{"x":287,"y":351,"width":590,"height":12}},{"id":"35c6fc3f-a471-4284-bda4-1b0a1319e8c5","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":152,"box":{"x":117,"y":366,"width":769,"height":12}},{"id":"f898e56d-05fa-4ed5-9df2-f73bfe0d3b65","block_type":"box","text":"Securities Lending.","page_number":152,"box":{"x":117,"y":397,"width":153,"height":12}},{"id":"80c38350-3017-46c5-bd65-1125cfd295a3","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock","page_number":152,"box":{"x":271,"y":397,"width":575,"height":12}},{"id":"d98a9dbc-17ec-48f2-a233-798a2043d7e9","block_type":"box","text":"determines to be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide","page_number":152,"box":{"x":116,"y":413,"width":744,"height":12}},{"id":"352fe631-b634-4069-b738-eeee0aead16d","block_type":"box","text":"collateral that is maintained in an amount at least","page_number":152,"box":{"x":116,"y":428,"width":369,"height":10}},{"id":"195a41cc-99f6-4bba-8a87-80a0e98a32e4","block_type":"box","text":"equal to the current market value of the securities","page_number":152,"box":{"x":486,"y":428,"width":373,"height":12}},{"id":"64695636-d4c8-4e9b-bcc0-28c95f9cc187","block_type":"box","text":"loaned. No securities loan shall be made on behalf of a Fund if, as a result, the aggregate value of all","page_number":152,"box":{"x":117,"y":444,"width":755,"height":12}},{"id":"0519d42a-cb9c-48ff-9b17-1e184c0a49be","block_type":"box","text":"securities loans of the particular Fund exceeds one-third of the value of such Fund’s total assets","page_number":152,"box":{"x":116,"y":459,"width":718,"height":12}},{"id":"94374f82-aeb8-4908-ab68-957784ff919e","block_type":"box","text":"(including the value of the collateral received). A Fund may terminate a loan at any time and obtain the","page_number":152,"box":{"x":117,"y":475,"width":765,"height":12}},{"id":"b9bfcf28-472e-430a-a929-3c70ad1bcfb3","block_type":"box","text":"return of the securities loaned. Each Fund receives, by way of substitute payment, the value of any","page_number":152,"box":{"x":117,"y":490,"width":738,"height":12}},{"id":"6d864794-fcb0-471e-9e35-1bfe296c53a3","block_type":"box","text":"interest or cash or non-cash distributions paid on the loaned securities that it would have otherwise","page_number":152,"box":{"x":117,"y":506,"width":738,"height":12}},{"id":"9ea69417-8ae7-4287-87b1-32a5203cf155","block_type":"box","text":"received if the securities were not on loan.","page_number":152,"box":{"x":117,"y":521,"width":318,"height":10}},{"id":"1cbf2132-cca0-45d0-ba33-6f33ba0bb53e","block_type":"box","text":"With respect to loans that are collateralized by cash, the borrower may be entitled to receive a fee","page_number":152,"box":{"x":116,"y":552,"width":732,"height":12}},{"id":"5bf2538f-224b-4e78-b0dd-a495b7cdac73","block_type":"box","text":"based on the amount of cash collateral. The Funds are compensated by any positive difference","page_number":152,"box":{"x":117,"y":568,"width":712,"height":12}},{"id":"92e4a787-14c6-4322-82b6-829e5573718f","block_type":"box","text":"between the amount earned on the reinvestment of cash collateral and the fee paid to the borrower. In","page_number":152,"box":{"x":117,"y":583,"width":763,"height":12}},{"id":"936c8d8e-0839-4cb2-867a-092cb56ae09b","block_type":"box","text":"the case of collateral other than cash, a Fund is compensated by a fee paid by the borrower equal to a","page_number":152,"box":{"x":116,"y":599,"width":765,"height":12}},{"id":"a561669a-5013-4b97-9569-ebad17d5e185","block_type":"box","text":"percentage of the market value of the loaned securities. Any cash collateral received by the Fund for","page_number":152,"box":{"x":117,"y":614,"width":750,"height":12}},{"id":"b76cc33c-f6a6-4b3c-a5f0-47c4dd31f449","block_type":"box","text":"such loans, and uninvested cash, may be reinvested in certain short-term instruments either directly on","page_number":152,"box":{"x":116,"y":630,"width":770,"height":12}},{"id":"1aac86c0-7511-4168-a298-9957df67de70","block_type":"box","text":"behalf of the Fund or through one or more joint accounts or money market funds, including those","page_number":152,"box":{"x":117,"y":645,"width":722,"height":12}},{"id":"e81e5033-c6cd-4f1b-bd35-e86d93df4cf8","block_type":"box","text":"affiliated with BlackRock; such investments are subject to investment risk.","page_number":152,"box":{"x":116,"y":661,"width":546,"height":12}},{"id":"87fdc0c6-eb32-4f76-8af6-ed81f76df5d7","block_type":"box","text":"Securities lending involves exposure to","page_number":152,"box":{"x":116,"y":692,"width":284,"height":12}},{"id":"24e0a0a1-8055-4711-9253-885f2ee5417b","block_type":"box","text":"certain risks, including operational risk (","page_number":152,"box":{"x":405,"y":692,"width":286,"height":12}},{"id":"239dc0d2-e4fd-40c6-9f8d-ad4a3e0ae534","block_type":"box","text":"i.e.","page_number":152,"box":{"x":692,"y":692,"width":20,"height":9}},{"id":"498df07d-74aa-44b9-869d-fba2e41188bc","block_type":"box","text":", the risk of losses","page_number":152,"box":{"x":715,"y":692,"width":130,"height":11}},{"id":"4c4bfe7f-0b5f-484d-b3ca-52f41e201229","block_type":"box","text":"resulting from problems in the settlement and accounting process), “gap” risk (","page_number":152,"box":{"x":117,"y":707,"width":567,"height":12}},{"id":"4a61737a-7ece-460e-ab29-9aa6b4c7fb48","block_type":"box","text":"i.e.","page_number":152,"box":{"x":685,"y":707,"width":20,"height":10}},{"id":"94912514-6308-4d06-97da-63a2ae9b3beb","block_type":"box","text":", the risk of a mismatch","page_number":152,"box":{"x":708,"y":707,"width":167,"height":11}},{"id":"65986694-4e5d-4f40-8242-dd1972ac2b43","block_type":"box","text":"between the return on cash collateral reinvestments and the fees each Fund has agreed to pay a","page_number":152,"box":{"x":117,"y":723,"width":703,"height":12}},{"id":"227cbc4e-6735-4505-8b0e-c3d08f699b0e","block_type":"box","text":"borrower), foreign exchange risk (","page_number":152,"box":{"x":117,"y":738,"width":244,"height":12}},{"id":"339aa689-d993-4475-906d-b764a3eeb422","block_type":"box","text":"i.e.","page_number":152,"box":{"x":362,"y":738,"width":20,"height":10}},{"id":"c896ff73-db44-4e13-b396-136f68297421","block_type":"box","text":", the risk of a shortfall at default when a cash collateral investment is","page_number":152,"box":{"x":385,"y":738,"width":494,"height":11}},{"id":"70e99822-a352-4b17-9740-319bc39a0d60","block_type":"box","text":"denominated in a currency other than the currency","page_number":152,"box":{"x":116,"y":754,"width":368,"height":12}},{"id":"9967e1e3-bf38-45a5-bd7e-35c67ffd86ed","block_type":"box","text":"of the assets being loaned due to movements in","page_number":152,"box":{"x":489,"y":754,"width":348,"height":12}},{"id":"ad5c6468-eba0-4905-95d7-dc55da1a33d9","block_type":"box","text":"foreign exchange rates), and credit, legal, counterparty","page_number":152,"box":{"x":116,"y":769,"width":398,"height":12}},{"id":"df7aa579-c64c-491d-ae7a-33e9fd64a346","block_type":"box","text":"and market risks (including the risk that market","page_number":152,"box":{"x":519,"y":769,"width":340,"height":12}},{"id":"41e8d58f-7f75-4010-b8ec-afc8e6a1623d","block_type":"box","text":"events, including but not limited to corporate actions,","page_number":152,"box":{"x":116,"y":785,"width":381,"height":12}},{"id":"d4c3f8e4-7d31-4642-9b4d-74b246f766eb","block_type":"box","text":"could lead a Fund to lend securities that are trading","page_number":152,"box":{"x":504,"y":785,"width":372,"height":12}},{"id":"dec8bfe9-48f5-4311-87b1-9816ad6fe594","block_type":"box","text":"at a premium due to increased demand, or to recall loaned","page_number":152,"box":{"x":116,"y":800,"width":425,"height":12}},{"id":"0a47c858-e25b-445d-bfdb-defaed78666e","block_type":"box","text":"securities or to lend less or not at all, which","page_number":152,"box":{"x":547,"y":800,"width":312,"height":11}},{"id":"6f04d821-e17f-4b6f-87bc-0f595e3f0099","block_type":"box","text":"could lead to reduced securities lending revenue). If a Fund","page_number":152,"box":{"x":116,"y":816,"width":431,"height":12}},{"id":"262fa82c-62e0-4937-891c-f9e5b678a428","block_type":"box","text":"were to lend out securities that are subject to","page_number":152,"box":{"x":553,"y":816,"width":326,"height":12}},{"id":"01173015-e7c0-4dd7-8382-b5e1fa2eabfa","block_type":"box","text":"a corporate action and commit to the borrower a","page_number":152,"box":{"x":116,"y":831,"width":355,"height":12}},{"id":"b395e990-a03a-4a83-abb0-88dbd9efe35e","block_type":"box","text":"particular election as determined by the Fund’s","page_number":152,"box":{"x":472,"y":831,"width":345,"height":12}},{"id":"8303b516-a52c-4043-b9d9-8d63ade1ec46","block_type":"box","text":"investment adviser, the benefit the Fund would receive","page_number":152,"box":{"x":117,"y":847,"width":401,"height":11}},{"id":"71667d49-3570-4855-a945-c84e7cd524b2","block_type":"box","text":"in respect of committing to such election may or","page_number":152,"box":{"x":519,"y":847,"width":352,"height":12}},{"id":"09f317b1-1198-4801-a252-b57da5082106","block_type":"box","text":"may not be less than the benefit the Fund would have received from making a different election in such","page_number":152,"box":{"x":117,"y":862,"width":752,"height":12}},{"id":"5751931d-14d2-48b6-8491-a3fa67aa9b1a","block_type":"box","text":"corporate action. If a securities lending counterparty","page_number":152,"box":{"x":116,"y":878,"width":377,"height":12}},{"id":"238954d2-be5b-4316-91e0-fba6ec8efeaa","block_type":"box","text":"y were to default, a Fund would be subject to the risk","page_number":152,"box":{"x":493,"y":878,"width":381,"height":12}},{"id":"41ead204-0ebe-4465-8a30-7bd80ac9b192","block_type":"box","text":"II-93","page_number":152,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"b728f6bc-d22e-4f39-a759-3518559b33cf","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":152,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"78019eac-d36c-4830-b7fc-59fe6d00b5f2","block_type":"box","text":"of a possible delay in receiving collateral or in re","page_number":153,"box":{"x":116,"y":87,"width":349,"height":12}},{"id":"bb59879c-cc45-4f70-a817-92f68870df01","block_type":"box","text":"covering the loaned securities, or to a possible loss of","page_number":153,"box":{"x":466,"y":87,"width":394,"height":12}},{"id":"4d1594e1-1bbb-4a0c-975b-5a3e036a4451","block_type":"box","text":"rights in the collateral. In the event a borrower does","page_number":153,"box":{"x":117,"y":103,"width":372,"height":12}},{"id":"6a416104-f23a-4e04-aa1b-3dd966db1d22","block_type":"box","text":"not return a Fund’s securities as agreed, the Fund’s","page_number":153,"box":{"x":489,"y":103,"width":386,"height":12}},{"id":"6f1efaeb-8a6d-435f-bdc4-8b1b65bdb09b","block_type":"box","text":"ability to participate in a corporate action event ma","page_number":153,"box":{"x":116,"y":118,"width":366,"height":12}},{"id":"904f1317-a2f4-4aef-86b3-d40ec8867159","block_type":"box","text":"y be impacted, or the Fund may experience losses if","page_number":153,"box":{"x":482,"y":118,"width":386,"height":12}},{"id":"b1236865-e969-429a-8d4f-8df01e59d01f","block_type":"box","text":"the proceeds received from liquidating the collateral do","page_number":153,"box":{"x":116,"y":134,"width":403,"height":12}},{"id":"34f0a70f-30c8-4fd7-a09b-7385d4a1efb9","block_type":"box","text":"not at least equal the value of the loaned security","page_number":153,"box":{"x":520,"y":134,"width":361,"height":12}},{"id":"e1ee78a7-a4f4-4b09-b376-9faaeea0da0f","block_type":"box","text":"at the time the collateral is liquidated, plus the t","page_number":153,"box":{"x":116,"y":149,"width":337,"height":12}},{"id":"0a8be93c-5d52-41a2-8557-1b60552216df","block_type":"box","text":"transaction costs incurred in purchasing replacement","page_number":153,"box":{"x":453,"y":149,"width":389,"height":12}},{"id":"55364700-0f87-4ca4-a497-cfc0c91afcad","block_type":"box","text":"securities. This latter event could trigger adverse tax consequences for a Fund. A Fund could lose money","page_number":153,"box":{"x":116,"y":165,"width":770,"height":12}},{"id":"da9f48a4-c5b4-4ea0-89b7-e28b0d2221fc","block_type":"box","text":"if its short-term investment of the collateral declines","page_number":153,"box":{"x":117,"y":180,"width":377,"height":10}},{"id":"1d5e290d-7a2a-4cb3-80cc-9394aa056baf","block_type":"box","text":"in value over the period of the loan. Substitute","page_number":153,"box":{"x":495,"y":180,"width":338,"height":12}},{"id":"b174534f-8cb4-457a-959b-13e788c44d0d","block_type":"box","text":"payments received by a Fund representing dividends","page_number":153,"box":{"x":117,"y":196,"width":390,"height":12}},{"id":"6d8b0d65-2b9f-4d58-b53b-acccbfaf25d2","block_type":"box","text":"paid on securities loaned out by the Fund will not","page_number":153,"box":{"x":508,"y":196,"width":359,"height":12}},{"id":"adea5cb9-e19c-4daa-b196-f797b94b65a4","block_type":"box","text":"be considered qualified dividend income, and distributions by the Fund of such substitute payments will","page_number":153,"box":{"x":117,"y":211,"width":752,"height":12}},{"id":"52311d4c-e9e7-4c3a-9ffa-5f1f6fdf21b1","block_type":"box","text":"not constitute qualified dividend income. Additi","page_number":153,"box":{"x":117,"y":227,"width":335,"height":11}},{"id":"c4e3af47-1600-4b7e-943f-9611601250f5","block_type":"box","text":"onally, substitute payments received by a Fund","page_number":153,"box":{"x":453,"y":227,"width":347,"height":12}},{"id":"97f59c9a-97fb-443e-a6d9-46389415eb26","block_type":"box","text":"representing qualified REIT dividends paid on REI","page_number":153,"box":{"x":117,"y":242,"width":361,"height":12}},{"id":"31ef85ee-39c7-424e-bf9f-17833653a40e","block_type":"box","text":"T securities loaned out by the Fund will not be","page_number":153,"box":{"x":480,"y":242,"width":339,"height":12}},{"id":"9b1cf8cf-4ae0-4976-817a-356a61b1ba14","block_type":"box","text":"considered qualified REIT dividends, and distributions","page_number":153,"box":{"x":116,"y":258,"width":395,"height":11}},{"id":"1c3bd74e-c48a-4454-b3ce-438241c564e1","block_type":"box","text":"by the Fund of such substitute payments will not","page_number":153,"box":{"x":512,"y":258,"width":354,"height":12}},{"id":"45900d9a-f0ba-4202-bff5-b3772e702f8a","block_type":"box","text":"be eligible for a 20% deduction currently availabl","page_number":153,"box":{"x":117,"y":273,"width":350,"height":12}},{"id":"c4f6c880-34f5-4cd4-986b-84b658199a08","block_type":"box","text":"e for ordinary REIT dividends paid to non-corporate","page_number":153,"box":{"x":469,"y":273,"width":378,"height":12}},{"id":"7ba4f0fc-9c21-4963-8418-3e506fddb072","block_type":"box","text":"shareholders provided certain other requirements are sa","page_number":153,"box":{"x":116,"y":289,"width":409,"height":12}},{"id":"ee672e1d-12a0-4da9-9c90-75feac506f76","block_type":"box","text":"tisfied. The securities lending agent will take into","page_number":153,"box":{"x":526,"y":289,"width":356,"height":12}},{"id":"37e25a27-5647-4282-8078-e954a2438fce","block_type":"box","text":"account the tax effects on shareholders caused by","page_number":153,"box":{"x":116,"y":304,"width":367,"height":12}},{"id":"c0bb3b6d-7da9-4e5b-8ccd-777753a7c49e","block_type":"box","text":"y these differences in connection with a Fund’s","page_number":153,"box":{"x":483,"y":304,"width":337,"height":10}},{"id":"108bcecb-7285-41c5-b6b8-2ae3982d2db1","block_type":"box","text":"securities lending program. Substitute payments re","page_number":153,"box":{"x":116,"y":320,"width":370,"height":12}},{"id":"8383bf56-4127-4dc9-acf2-adf50506200c","block_type":"box","text":"ceived on tax-exempt securities loaned out will not be","page_number":153,"box":{"x":487,"y":320,"width":393,"height":12}},{"id":"efaf5d2f-e53d-46e1-9223-15919a1bd6cc","block_type":"box","text":"tax-exempt income. There could also be changes in","page_number":153,"box":{"x":116,"y":335,"width":376,"height":12}},{"id":"dabd3235-93f8-4a98-9266-50d27bfa94c2","block_type":"box","text":"the status of issuers under applicable laws and","page_number":153,"box":{"x":493,"y":335,"width":350,"height":12}},{"id":"805d67e5-a9a8-4596-b7b3-a8249aa33940","block_type":"box","text":"regulations, including tax regulations, that may impact t","page_number":153,"box":{"x":117,"y":351,"width":395,"height":12}},{"id":"ec284c40-0c14-470a-a2f1-2a80d38978b2","block_type":"box","text":"the regulatory or tax treatment of loaned securities","page_number":153,"box":{"x":512,"y":351,"width":371,"height":12}},{"id":"eea5cc69-91f3-4592-b042-0275de47ed69","block_type":"box","text":"and could, for example, result in a delay in t","page_number":153,"box":{"x":116,"y":366,"width":317,"height":12}},{"id":"c716b790-8412-4177-bd15-504ac222eb88","block_type":"box","text":"he payment of dividend equivalent payments owed to a Fund","page_number":153,"box":{"x":434,"y":366,"width":448,"height":12}},{"id":"00de6b4a-7db7-4b36-9f51-b24a02604af6","block_type":"box","text":"(as permitted by applicable law).","page_number":153,"box":{"x":117,"y":382,"width":239,"height":12}},{"id":"3749ee48-1022-497e-aceb-0a42d9fa4c27","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and","page_number":153,"box":{"x":117,"y":413,"width":761,"height":12}},{"id":"de2d6e05-5ce6-4836-8f55-418f3146bd0e","block_type":"box","text":"certain of their affiliates to include in certain financial contracts, including many securities lending","page_number":153,"box":{"x":116,"y":428,"width":723,"height":12}},{"id":"e4df1973-528e-4624-84d2-168cd2169ab0","block_type":"box","text":"agreements, terms that delay or restrict the rights of counterparties, such as the Fund, to terminate","page_number":153,"box":{"x":116,"y":444,"width":739,"height":12}},{"id":"49102277-3c3d-4763-b08b-21dbad96eaa0","block_type":"box","text":"such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":153,"box":{"x":116,"y":459,"width":751,"height":12}},{"id":"d6a0797a-a193-41de-a0b5-2eb6fecf58e3","block_type":"box","text":"support in the event that the counterparty and/or its affiliates are subject to certain types of resolution","page_number":153,"box":{"x":116,"y":475,"width":754,"height":12}},{"id":"c783d428-b5cc-410c-a0e6-3ad2f587301d","block_type":"box","text":"or insolvency proceedings. It is possible that these requirements, as well as potential additional","page_number":153,"box":{"x":116,"y":490,"width":711,"height":12}},{"id":"9d6fe8a4-9228-48cc-b7f1-a491b1502bb0","block_type":"box","text":"government regulation and other developments in the market, could adversely affect the Fund’s ability","page_number":153,"box":{"x":116,"y":506,"width":762,"height":12}},{"id":"eaf100d2-00fc-4dc0-b197-0c32b4ef51ef","block_type":"box","text":"to terminate existing securities lending agreements or to realize amounts to be received under such","page_number":153,"box":{"x":116,"y":521,"width":744,"height":12}},{"id":"d3190614-5b14-41e6-afec-4d3e5396870c","block_type":"box","text":"agreements. Prudential regulation may also favor lenders that can provide additional protections, such","page_number":153,"box":{"x":116,"y":537,"width":764,"height":12}},{"id":"1ab79eaa-64d0-4e9b-a0ca-aa2e9aa5c9ce","block_type":"box","text":"as liens that are exercisable in connection with a lender default, to borrowers. Certain Funds expect to","page_number":153,"box":{"x":116,"y":552,"width":763,"height":12}},{"id":"6f9db81c-eae7-4ee0-b2d2-6d26eb1bf8e2","block_type":"box","text":"provide additional protections to borrowers, where permitted pursuant to a Fund’s investment policies","page_number":153,"box":{"x":117,"y":568,"width":756,"height":12}},{"id":"1550f4e8-dc35-41b9-b4e9-8aca0a785a99","block_type":"box","text":"and if BlackRock believes doing so is in the best interest of the Fund.","page_number":153,"box":{"x":116,"y":583,"width":518,"height":12}},{"id":"f16c9a02-c599-47cc-8720-ca420669d16b","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan","page_number":153,"box":{"x":116,"y":614,"width":698,"height":12}},{"id":"aea10fe2-2e8c-4167-a5b6-6073b9ffa9d9","block_type":"box","text":"transaction information (not including party names); this may include, but is not limited to, information","page_number":153,"box":{"x":116,"y":630,"width":755,"height":12}},{"id":"5772e3bf-647b-4a36-9c01-7c3cd9e19c93","block_type":"box","text":"about securities loans entered into in connection with short sales. Compliance with this rule is expected","page_number":153,"box":{"x":116,"y":645,"width":771,"height":12}},{"id":"0f24dad3-618f-4f81-996a-38b0e809388c","block_type":"box","text":"to be required in late 2028, although in response to the outcome of a legal challenge against the rule,","page_number":153,"box":{"x":116,"y":661,"width":750,"height":12}},{"id":"a2a299d2-d521-4b9d-9784-f024ad41a962","block_type":"box","text":"the SEC may amend the rule and/or delay the current expected compliance date.","page_number":153,"box":{"x":116,"y":676,"width":602,"height":12}},{"id":"1f487b2f-2f76-4631-b70a-52eb7e4a4af8","block_type":"box","text":"Short Sales.","page_number":153,"box":{"x":117,"y":707,"width":95,"height":10}},{"id":"e12998a0-6d31-4728-a53e-3da6d019c3c7","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential","page_number":153,"box":{"x":219,"y":707,"width":633,"height":12}},{"id":"fc6de76d-9fac-4617-8e48-e88cdd39c05c","block_type":"box","text":"declines in value of a portfolio security or to realize appreciation when a security that the Fund does","page_number":153,"box":{"x":116,"y":723,"width":739,"height":12}},{"id":"f7f40299-354f-44ae-9665-ac655b2a1911","block_type":"box","text":"not own declines in value. Certain Funds have a fundamental investment restriction prohibiting short","page_number":153,"box":{"x":117,"y":738,"width":742,"height":12}},{"id":"3d3f9f53-959f-4937-8473-bf08c14c78d4","block_type":"box","text":"sales of securities unless they are “against-the-box.” In a short sale “against-the-box,” at the time of the","page_number":153,"box":{"x":116,"y":754,"width":766,"height":12}},{"id":"4cba96ea-075d-4c66-ab20-72a05ab059cf","block_type":"box","text":"sale, the Fund owns or has the immediate and unconditional right to acquire the identical security at no","page_number":153,"box":{"x":116,"y":769,"width":764,"height":12}},{"id":"2039849d-7aa1-4610-b078-290edba18a34","block_type":"box","text":"additional cost. When a Fund makes a short sale, it borrows the security sold short and delivers it to","page_number":153,"box":{"x":116,"y":785,"width":741,"height":12}},{"id":"478f17af-a316-49a0-9333-87252ea1c239","block_type":"box","text":"the broker-dealer through which it made the short sale. A Fund may have to pay a fee to borrow","page_number":153,"box":{"x":116,"y":800,"width":712,"height":12}},{"id":"2602150c-ea73-48e2-9cba-cfcb2dd1ccf2","block_type":"box","text":"particular securities and is often obligated to turn over any payments received on such borrowed","page_number":153,"box":{"x":117,"y":816,"width":713,"height":12}},{"id":"11df3be0-2ea3-4e4c-b75b-bca5caaaf7b4","block_type":"box","text":"securities to the lender of the securities.","page_number":153,"box":{"x":116,"y":831,"width":301,"height":10}},{"id":"668e51a9-378c-4af2-a471-69b81b9be21e","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker","page_number":153,"box":{"x":116,"y":862,"width":756,"height":12}},{"id":"a95c4822-e58d-459d-85c0-81fe6590797e","block_type":"box","text":"dealer, usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed.","page_number":153,"box":{"x":116,"y":878,"width":769,"height":12}},{"id":"9baaff1a-aa4c-483f-bf31-6006cf7eff37","block_type":"box","text":"II-94","page_number":153,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"f4b74bc0-56b8-4539-842e-3ed27fc6c30d","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":153,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9419045e-7129-4b31-b9bd-e7eaea13ebc7","block_type":"box","text":"With respect to uncovered short positions, a Fund is required to deposit similar collateral with its","page_number":154,"box":{"x":116,"y":87,"width":717,"height":12}},{"id":"6485f256-e3e0-4db0-9756-830918bf2eae","block_type":"box","text":"custodian, if necessary, to the extent that the value of both collateral deposits in the aggregate is at all","page_number":154,"box":{"x":116,"y":102,"width":763,"height":13}},{"id":"f63e7caf-8552-4693-8375-27dd1ae6ac20","block_type":"box","text":"times equal to at least 100% of the current market value of the security sold short. Depending on","page_number":154,"box":{"x":116,"y":118,"width":722,"height":12}},{"id":"1f79538e-3e78-448c-a097-5fcc9b6f132b","block_type":"box","text":"arrangements made with the broker-dealer from which the Fund borrowed the security, regarding","page_number":154,"box":{"x":116,"y":134,"width":726,"height":12}},{"id":"6bef8791-ff66-48a3-9173-681eda03d005","block_type":"box","text":"payment received by the Fund on such security, a Fund may not receive any payments (including","page_number":154,"box":{"x":117,"y":149,"width":728,"height":12}},{"id":"90d37b00-a97c-4978-af2a-012d6db38650","block_type":"box","text":"interest) on its collateral deposited with such broker-dealer.","page_number":154,"box":{"x":117,"y":165,"width":443,"height":12}},{"id":"3cab9c35-07ac-43d8-b693-006d492b03f5","block_type":"box","text":"Because making short sales in securities that it does not own exposes a Fund to the risks associated","page_number":154,"box":{"x":117,"y":196,"width":754,"height":12}},{"id":"f76e7132-1c02-4a36-a37f-3a61e5c7a81d","block_type":"box","text":"with those securities, such short sales involve speculative exposure risk. A Fund will incur a loss as a","page_number":154,"box":{"x":116,"y":211,"width":755,"height":12}},{"id":"4e8998d7-d5bb-40c0-8720-4e8598b9de97","block_type":"box","text":"result of a short sale if the price of the security increases between the date of the short sale and the","page_number":154,"box":{"x":117,"y":227,"width":743,"height":12}},{"id":"e88b7605-e23c-4561-99ad-479a4333169a","block_type":"box","text":"date on which the Fund replaces the borrowed security. As a result, if a Fund makes short sales in","page_number":154,"box":{"x":116,"y":242,"width":735,"height":12}},{"id":"b21e83ec-2d5d-4e9e-993d-7451d39a0e76","block_type":"box","text":"securities that increase in value, it will likely underperform similar mutual funds that do not make short","page_number":154,"box":{"x":116,"y":258,"width":759,"height":12}},{"id":"331969ef-74f7-45c5-bbc5-638bf4185b54","block_type":"box","text":"sales in securities. A Fund will realize a gain on a short sale if the security declines in price between","page_number":154,"box":{"x":116,"y":273,"width":746,"height":12}},{"id":"ca696b3e-01df-48e4-b305-d835a905328a","block_type":"box","text":"those dates. There can be no assurance that a Fund will be able to close out a short sale position at","page_number":154,"box":{"x":116,"y":289,"width":747,"height":12}},{"id":"243a03c0-3f1b-4615-8968-da67455787bd","block_type":"box","text":"any particular time or at an acceptable price. Although a Fund’s gain is limited to the price at which it","page_number":154,"box":{"x":116,"y":304,"width":750,"height":12}},{"id":"b168bcb4-b7fa-4ce1-894e-4bd1690678f7","block_type":"box","text":"sold the security short, its potential loss is limited only by the maximum attainable price of the security,","page_number":154,"box":{"x":116,"y":320,"width":764,"height":12}},{"id":"3c0e4472-1bfa-4334-8779-bc3b37be2f8e","block_type":"box","text":"less the price at which the security was sold and may, theoretically, be unlimited.","page_number":154,"box":{"x":117,"y":335,"width":603,"height":12}},{"id":"c77d684b-2a55-4ad0-ad7c-59f75f6f53a2","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":154,"box":{"x":116,"y":366,"width":698,"height":12}},{"id":"841b0698-b568-49ac-aef3-80dcf67dfdcb","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its short","page_number":154,"box":{"x":116,"y":397,"width":720,"height":12}},{"id":"d0eb7499-d024-4e44-bc3a-99ef8638b0f9","block_type":"box","text":"sale borrowings, which are considered Derivatives Transactions under the Rule. See","page_number":154,"box":{"x":116,"y":413,"width":634,"height":12}},{"id":"012dfa10-f7b1-4ccf-bf53-1b273fbf8ee6","block_type":"box","text":"“—Derivatives—Regulation of Derivatives—Rule 18f-4 under the Investment Company Act” above.","page_number":154,"box":{"x":116,"y":428,"width":738,"height":12}},{"id":"aabd8047-1e95-45eb-a75d-63438d4f7a32","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United","page_number":154,"box":{"x":116,"y":459,"width":712,"height":12}},{"id":"88b02346-2cd2-4845-9823-9c6e13291db6","block_type":"box","text":"Kingdom regulations (under which there are restrictions on net short sales in certain securities). If the","page_number":154,"box":{"x":117,"y":475,"width":755,"height":12}},{"id":"4958dc7b-e1f3-4745-9a15-f44066ebfde3","block_type":"box","text":"SEC or regulatory authorities in other jurisdictions were to adopt additional restrictions regarding short","page_number":154,"box":{"x":116,"y":490,"width":761,"height":12}},{"id":"69c7f6b9-a1da-4328-8a38-e76c1f10d26e","block_type":"box","text":"sales, they could restrict a Fund’s ability to engage in short sales in certain circumstances, and the","page_number":154,"box":{"x":116,"y":506,"width":736,"height":12}},{"id":"f0f1e3f5-0f9f-443f-bd0e-151440658fab","block_type":"box","text":"Fund may be unable to execute its investment strategy as a result. In response to market events, the","page_number":154,"box":{"x":117,"y":521,"width":753,"height":12}},{"id":"21c81544-fbea-4d04-823e-99f32d48d223","block_type":"box","text":"SEC and regulatory authorities in other jurisdictions may adopt (and in certain cases, have adopted)","page_number":154,"box":{"x":116,"y":537,"width":747,"height":12}},{"id":"7773bdd4-bb66-40af-8635-080ef7818032","block_type":"box","text":"bans or other restrictions on short sales of certain securities or on derivatives and other hedging","page_number":154,"box":{"x":117,"y":552,"width":717,"height":12}},{"id":"b7a6d299-eea3-4d77-bc48-58208cea910a","block_type":"box","text":"instruments used to achieve a similar economic effect. Such bans or other restrictions may make it","page_number":154,"box":{"x":117,"y":568,"width":736,"height":12}},{"id":"d853859b-895d-4d65-93c8-ca271fb08adf","block_type":"box","text":"impossible for a Fund to execute certain investment strategies and may have a material adverse effect","page_number":154,"box":{"x":117,"y":583,"width":765,"height":12}},{"id":"31fb4f97-1315-498e-aec6-14a061dad571","block_type":"box","text":"on the Fund’s ability to generate returns.","page_number":154,"box":{"x":116,"y":599,"width":306,"height":12}},{"id":"edac08d2-e81a-4be9-b4e2-6b77a52c3b19","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":154,"box":{"x":117,"y":630,"width":325,"height":12}},{"id":"58e4d3c4-af27-4c5b-b10b-49ab39e4816f","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other","page_number":154,"box":{"x":443,"y":630,"width":411,"height":12}},{"id":"dd6672b5-7a6b-47f8-ae4b-8545bf0f0928","block_type":"box","text":"interests issued by special purpose acquisition companies (“SPACs”) or similar special purpose entities","page_number":154,"box":{"x":117,"y":645,"width":770,"height":12}},{"id":"de53a74b-fd29-4bf9-a842-34fd5fd8eba4","block_type":"box","text":"that pool funds to seek potential acquisition opportunities, including the “founder’s” shares and","page_number":154,"box":{"x":116,"y":661,"width":698,"height":12}},{"id":"2521af9c-e60f-4425-bf6a-6dd21ef15eda","block_type":"box","text":"warrants described below. A SPAC is a publicly traded company that raises investment capital via an","page_number":154,"box":{"x":116,"y":676,"width":749,"height":12}},{"id":"aa430501-7cee-45c5-9590-550e8504bc6f","block_type":"box","text":"IPO for the purpose of identifying and acquiring one or more operating businesses or assets. In","page_number":154,"box":{"x":117,"y":692,"width":705,"height":12}},{"id":"c800729d-bc37-4f96-aa5e-771a70a4da82","block_type":"box","text":"connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s” shares, generally for","page_number":154,"box":{"x":116,"y":707,"width":712,"height":12}},{"id":"30d24c17-b137-404f-b77c-c4f8093a54e0","block_type":"box","text":"nominal consideration, and warrants that will result in the sponsors owning a specified percentage","page_number":154,"box":{"x":117,"y":723,"width":726,"height":12}},{"id":"106453af-03d5-4fff-9625-216f4f2d0d23","block_type":"box","text":"(typically 20%) of the SPAC’s outstanding common stock upon completion of the IPO. At the time a","page_number":154,"box":{"x":117,"y":738,"width":735,"height":12}},{"id":"79b3816d-f859-4e4c-8cb4-c1c5376c3ca4","block_type":"box","text":"SPAC conducts an IPO, it has selected a management team but has not yet identified a specific","page_number":154,"box":{"x":116,"y":754,"width":713,"height":12}},{"id":"e5ecf022-e2c7-4679-9921-77edf7164198","block_type":"box","text":"acquisition opportunity. Unless and until an acquisition is completed, a SPAC generally invests its","page_number":154,"box":{"x":116,"y":769,"width":723,"height":12}},{"id":"bfd86ebc-51fc-4899-8d17-7f652b546a35","block_type":"box","text":"assets in U.S. Government securities, money market securities and cash. If an acquisition that meets","page_number":154,"box":{"x":116,"y":785,"width":751,"height":12}},{"id":"359ea582-737b-404c-bc64-8cda10579393","block_type":"box","text":"the requirements for the SPAC is not completed within a pre-established period of time, the invested","page_number":154,"box":{"x":116,"y":800,"width":743,"height":12}},{"id":"31bea45c-6d40-4de0-9a9c-76fc88ae17ac","block_type":"box","text":"funds are returned to the SPAC’s public shareholders, the warrants expire, and the “founder’s” shares","page_number":154,"box":{"x":116,"y":816,"width":755,"height":12}},{"id":"46ef76ed-9816-4a46-9237-f5e9a87e6144","block_type":"box","text":"and such warrants become worthless. Because SPACs and similar entities are in essence “blank","page_number":154,"box":{"x":116,"y":831,"width":725,"height":10}},{"id":"3c9f621c-040f-474f-9ccb-b4ecf54228f4","block_type":"box","text":"check” companies without operating histories or ongoing business operations (other than identifying","page_number":154,"box":{"x":116,"y":847,"width":745,"height":12}},{"id":"e8e5492a-9767-4598-a40e-249546d54b6f","block_type":"box","text":"and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":154,"box":{"x":116,"y":862,"width":728,"height":12}},{"id":"a70e4ce8-c02f-40ce-9b76-56876afc86a5","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable","page_number":154,"box":{"x":117,"y":878,"width":751,"height":12}},{"id":"6c3958f2-9eca-4f0e-b63c-97c883e75da0","block_type":"box","text":"II-95","page_number":154,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"42882a56-1f06-4df0-9f5f-44b865239fb2","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":154,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c69d466c-49ee-4160-8f01-7b34e3f70c4e","block_type":"box","text":"acquisition. There is no guarantee that the SPACs in which a Fund invests will complete an acquisition","page_number":155,"box":{"x":116,"y":87,"width":766,"height":12}},{"id":"f8ae2585-ba30-49ce-bba5-0682c936c038","block_type":"box","text":"or that any acquisitions completed by the SPACs in which the Fund invests will be profitable. Some","page_number":155,"box":{"x":116,"y":102,"width":740,"height":13}},{"id":"7230418b-0ac6-4d22-8d13-840cbc640885","block_type":"box","text":"SPACs may pursue acquisitions only within certain industries or regions, which may ultimately lead to","page_number":155,"box":{"x":116,"y":118,"width":758,"height":12}},{"id":"e5ac02d9-4f3f-4b39-8177-51a69b92e6c1","block_type":"box","text":"an increase in the volatility of their prices following the acquisition. In addition, some of these securities","page_number":155,"box":{"x":116,"y":134,"width":768,"height":12}},{"id":"2ec06752-2649-4303-9426-f6d7dcee3bda","block_type":"box","text":"may be considered illiquid and/or subject to restrictions on resale.","page_number":155,"box":{"x":117,"y":149,"width":491,"height":12}},{"id":"c2f996ee-2fcb-427e-83cb-35030866c1c0","block_type":"box","text":"Standby Commitment Agreements.","page_number":155,"box":{"x":117,"y":180,"width":278,"height":12}},{"id":"b637d5b8-c0d7-46fb-990a-b09e8c035f24","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated","page_number":155,"box":{"x":396,"y":180,"width":471,"height":12}},{"id":"e96acdcc-8aa9-4e76-8f47-42fa73b0a5f9","block_type":"box","text":"period of time, to purchase a stated amount of securities that may be issued and sold to that Fund at","page_number":155,"box":{"x":117,"y":196,"width":750,"height":12}},{"id":"ea14a508-455d-4cce-bc3a-05d2b9c2270f","block_type":"box","text":"the option of the issuer. The price of the security is fixed at the time of the commitment. At the time of","page_number":155,"box":{"x":116,"y":211,"width":756,"height":12}},{"id":"cd95eb10-4891-4548-bc3a-1d2017bb0f47","block_type":"box","text":"entering into the agreement, a Fund is paid a commitment fee, regardless of whether or not the","page_number":155,"box":{"x":116,"y":227,"width":711,"height":12}},{"id":"700b8563-8f92-4f18-a169-78f69869b9f8","block_type":"box","text":"security is ultimately issued. A Fund will enter into such agreements for the purpose of investing in the","page_number":155,"box":{"x":116,"y":242,"width":762,"height":12}},{"id":"1a6f4513-cb70-4bc2-9d74-76150153b11d","block_type":"box","text":"security underlying the commitment at a price that is considered advantageous to the Fund.","page_number":155,"box":{"x":116,"y":258,"width":685,"height":12}},{"id":"50826c68-8886-4340-818c-7aceb3b5e59c","block_type":"box","text":"There can be no assurance that the securities subject to a standby commitment will be issued, and the","page_number":155,"box":{"x":116,"y":289,"width":767,"height":12}},{"id":"37bf80fa-bcb0-4bf6-8f82-b8e7ceac07d6","block_type":"box","text":"value of the security, if issued, on the delivery date may be more or less than its purchase price. Since","page_number":155,"box":{"x":116,"y":304,"width":764,"height":12}},{"id":"10489a41-85fb-49ac-b5a0-8779e58225a3","block_type":"box","text":"the issuance of the security underlying the commitment is at the option of the issuer, the Fund may","page_number":155,"box":{"x":116,"y":320,"width":738,"height":12}},{"id":"c1dd0275-4386-4dce-8d6c-d0e8fcb8ee1e","block_type":"box","text":"bear the risk of a decline in the value of such security and may not benefit from an appreciation in the","page_number":155,"box":{"x":117,"y":335,"width":756,"height":12}},{"id":"ee8cd79a-05f9-4414-ae55-b3dc3d04329e","block_type":"box","text":"value of the security during the commitment period.","page_number":155,"box":{"x":116,"y":351,"width":386,"height":12}},{"id":"32ce0dc1-3b67-4d50-98e9-787c6ec4dedf","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment","page_number":155,"box":{"x":116,"y":382,"width":764,"height":12}},{"id":"b54e041d-5a6a-4a8c-ba4e-e8a931aee037","block_type":"box","text":"fee will be recorded on the date on which the security can reasonably be expected to be issued, and","page_number":155,"box":{"x":116,"y":397,"width":749,"height":12}},{"id":"2a9fe6a7-7b2b-448b-9ce3-e9445dce65d6","block_type":"box","text":"the value of the security thereafter will be reflected in the calculation of a Fund’s NAV. The cost basis","page_number":155,"box":{"x":116,"y":413,"width":755,"height":12}},{"id":"18acc2a4-3eb2-4f88-a5a6-a935cd6216b7","block_type":"box","text":"of the security will be adjusted by the amount of the commitment fee. In the event the security is not","page_number":155,"box":{"x":116,"y":428,"width":745,"height":12}},{"id":"1d0ff03d-efbd-438e-8041-9070aff8fdce","block_type":"box","text":"issued, the commitment fee will be recorded as income on the expiration date of the standby","page_number":155,"box":{"x":117,"y":444,"width":690,"height":12}},{"id":"3afcdc1a-345b-40b8-af93-b7dbce52e333","block_type":"box","text":"commitment.","page_number":155,"box":{"x":116,"y":459,"width":101,"height":10}},{"id":"223990a5-c4be-4422-86cb-30c18c1d3bd7","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the","page_number":155,"box":{"x":116,"y":490,"width":744,"height":12}},{"id":"dfe4905c-9ff6-4ac4-88e9-2b88101bcdac","block_type":"box","text":"Manager’s or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby","page_number":155,"box":{"x":117,"y":506,"width":693,"height":12}},{"id":"9572f55e-7220-4305-967f-7bbd8c4780c2","block_type":"box","text":"commitments solely to facilitate portfolio liquidity and not to exercise its rights thereunder for trading","page_number":155,"box":{"x":116,"y":521,"width":744,"height":12}},{"id":"968de0f0-7275-451a-9082-ed99d6c9f1af","block_type":"box","text":"purposes. Standby commitments will be valued at zero in determining NAV. Accordingly, where a Fund","page_number":155,"box":{"x":117,"y":537,"width":769,"height":12}},{"id":"1050dfa9-656c-49f2-b71a-a27bd3ea7d0b","block_type":"box","text":"pays directly or indirectly for a standby commitment, its cost will be reflected as an unrealized loss for","page_number":155,"box":{"x":117,"y":552,"width":756,"height":12}},{"id":"a4150fc3-4440-49bf-99dd-13d654cd8ca4","block_type":"box","text":"the period during which the commitment is held by such Fund and will be reflected as a realized gain or","page_number":155,"box":{"x":116,"y":568,"width":771,"height":12}},{"id":"e1c77e3d-49f7-4895-8b7f-4224bc9213b4","block_type":"box","text":"loss when the commitment is exercised or expires.","page_number":155,"box":{"x":117,"y":583,"width":380,"height":12}},{"id":"001a2903-446c-4048-9063-0217cb46be41","block_type":"box","text":"Stripped Securities.","page_number":155,"box":{"x":117,"y":614,"width":156,"height":12}},{"id":"c0240fea-02fc-410f-9e95-10f988bd95ae","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and","page_number":155,"box":{"x":274,"y":614,"width":560,"height":12}},{"id":"75f2b7d9-8bcd-4e80-bb22-4ed4ecf332ec","block_type":"box","text":"principal components of an instrument and sells them as separate securities. In general, one security is","page_number":155,"box":{"x":117,"y":630,"width":771,"height":12}},{"id":"5abdffe0-58d5-4dbd-9b9f-8e7df9e5680a","block_type":"box","text":"entitled to receive the interest payments on the underlying assets (the interest only or “IO” security)","page_number":155,"box":{"x":116,"y":645,"width":740,"height":12}},{"id":"bca0a963-0829-4207-bf1c-67819f54c104","block_type":"box","text":"and the other to receive the principal payments (the principal only or “PO” security). Some stripped","page_number":155,"box":{"x":116,"y":661,"width":731,"height":12}},{"id":"ac989070-7062-4b4e-85d5-491130529be6","block_type":"box","text":"securities may receive a combination of interest and principal payments. The yields to maturity on IOs","page_number":155,"box":{"x":116,"y":676,"width":755,"height":12}},{"id":"718ee242-8034-413b-bc9d-fd44eb9d49f6","block_type":"box","text":"and POs are sensitive to the expected or anticipated rate of principal payments (including","page_number":155,"box":{"x":116,"y":692,"width":663,"height":12}},{"id":"4061aa47-9387-47ae-b56c-d74b69836578","block_type":"box","text":"prepayments) on the related underlying assets, and principal payments may have a material effect on","page_number":155,"box":{"x":117,"y":707,"width":752,"height":12}},{"id":"67a905eb-b100-4012-89e2-18c433ae23c1","block_type":"box","text":"yield to maturity. If the underlying assets experience greater than anticipated prepayments of principal,","page_number":155,"box":{"x":116,"y":723,"width":760,"height":12}},{"id":"03a97689-b66e-46f5-9f7a-82a016057777","block_type":"box","text":"a Fund may not fully recoup its initial investment in IOs. Conversely, if the underlying assets","page_number":155,"box":{"x":116,"y":738,"width":681,"height":12}},{"id":"455a30ee-8abb-4fbe-a288-36678947baf0","block_type":"box","text":"experience less than anticipated prepayments of principal, the yield on POs could be adversely","page_number":155,"box":{"x":116,"y":754,"width":706,"height":12}},{"id":"382e0b4f-0645-4459-a49f-eeeff488ff1d","block_type":"box","text":"affected. Stripped securities may be highly sensitive to changes in interest rates and rates of","page_number":155,"box":{"x":116,"y":769,"width":687,"height":12}},{"id":"fdf09ff2-84cb-4ac4-81f4-a5af808f1eeb","block_type":"box","text":"prepayment.","page_number":155,"box":{"x":117,"y":785,"width":91,"height":12}},{"id":"0ebe1301-b6e4-4564-918a-a93d1d4c8514","block_type":"box","text":"Structured Notes.","page_number":155,"box":{"x":117,"y":816,"width":139,"height":9}},{"id":"8c957b81-03a4-4455-9555-57c14a197194","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally","page_number":155,"box":{"x":262,"y":816,"width":612,"height":12}},{"id":"ffe67128-6c9e-4638-9145-8036c71b0898","block_type":"box","text":"privately negotiated debt obligations where the principal and/or interest is determined by reference to","page_number":155,"box":{"x":117,"y":831,"width":753,"height":12}},{"id":"6c22bcd7-df22-49cb-a6cc-f04e7d3b3ceb","block_type":"box","text":"the performance of a specific asset, benchmark asset, market or interest rate (“reference measure”).","page_number":155,"box":{"x":116,"y":847,"width":751,"height":12}},{"id":"d8f6cca3-3800-4c66-b86a-f0053aca58e6","block_type":"box","text":"Issuers of structured notes generally include corporations and banks. The interest rate or the principal","page_number":155,"box":{"x":117,"y":862,"width":760,"height":12}},{"id":"43fc9cde-cce0-4e3a-aef4-2fbee4b94f3c","block_type":"box","text":"amount payable upon maturity or redemption may increase or decrease, depending upon changes in","page_number":155,"box":{"x":116,"y":878,"width":754,"height":12}},{"id":"b6e0525f-0bb0-4638-8619-9a9d8492f35a","block_type":"box","text":"II-96","page_number":155,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"5927e034-fafb-478f-9e5a-d038d3eb265c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":155,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c7bf704f-958e-478c-bf67-99e520bea7cf","block_type":"box","text":"the value of the reference measure. The terms of a structured note may provide that, in certain","page_number":156,"box":{"x":116,"y":87,"width":708,"height":12}},{"id":"51b49312-af1b-4f7f-a240-7b5d0a0539a9","block_type":"box","text":"circumstances, no principal is due at maturity and, therefore, may result in a loss of invested capital by","page_number":156,"box":{"x":116,"y":102,"width":765,"height":13}},{"id":"d6881bd8-8733-41e7-aed6-f20d00510fe3","block_type":"box","text":"a Fund. The interest and/or principal payments that may be made on a structured product may vary","page_number":156,"box":{"x":116,"y":118,"width":743,"height":12}},{"id":"337c9aea-29d8-434a-91d1-59a6341e93e9","block_type":"box","text":"widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":156,"box":{"x":116,"y":134,"width":671,"height":12}},{"id":"ea2140bc-0cf0-4b77-b7a4-7484e528444d","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure","page_number":156,"box":{"x":116,"y":165,"width":770,"height":12}},{"id":"4d539157-0389-4693-a898-739f58fcea0f","block_type":"box","text":"may produce an increase or a decrease in the interest rate or the value of the principal at maturity. The","page_number":156,"box":{"x":117,"y":180,"width":768,"height":12}},{"id":"751004e9-d3b6-4f94-add9-c80926109d04","block_type":"box","text":"rate of return on structured notes may be determined by applying a multiplier to the performance or","page_number":156,"box":{"x":117,"y":196,"width":739,"height":12}},{"id":"dfa3bcc7-0f8e-44be-ba62-32a56abac260","block_type":"box","text":"differential performance of reference measures. Application of a multiplier involves leverage that will","page_number":156,"box":{"x":116,"y":211,"width":746,"height":12}},{"id":"024c052a-0c69-41c8-8262-a6072b55ff13","block_type":"box","text":"serve to magnify the potential for gain and the risk of loss.","page_number":156,"box":{"x":116,"y":227,"width":435,"height":12}},{"id":"d78fbd18-ff3c-4f4f-b04b-3826efbdbb55","block_type":"box","text":"The purchase of structured notes exposes a Fund to the credit risk of the issuer of the structured","page_number":156,"box":{"x":116,"y":258,"width":722,"height":11}},{"id":"ada1af00-da55-42a9-89de-b0699ed6e39a","block_type":"box","text":"product. Structured notes may also be more volatile, less liquid, and more difficult to price accurately","page_number":156,"box":{"x":117,"y":273,"width":750,"height":12}},{"id":"238b548e-9a0e-48f3-bbba-632268b27b62","block_type":"box","text":"than less complex securities and instruments or more traditional debt securities. The secondary market","page_number":156,"box":{"x":116,"y":289,"width":770,"height":12}},{"id":"a8651114-ee6d-434d-afe5-9bae5eefc773","block_type":"box","text":"for structured notes could be illiquid making them difficult to sell when the Fund determines to sell","page_number":156,"box":{"x":116,"y":304,"width":729,"height":12}},{"id":"b63f80eb-e7c8-464d-b899-ae65859f5a68","block_type":"box","text":"them. The possible lack of a liquid secondary market for structured notes and the resulting inability of","page_number":156,"box":{"x":116,"y":320,"width":755,"height":12}},{"id":"2eccdb18-d14f-4776-9ccc-29345cb54a87","block_type":"box","text":"the Fund to sell a structured note could expose the Fund to losses and could make structured notes","page_number":156,"box":{"x":116,"y":335,"width":746,"height":12}},{"id":"d787192b-6607-4bb6-b8ef-98cbf8f44cf6","block_type":"box","text":"more difficult for the Fund to value accurately.","page_number":156,"box":{"x":117,"y":351,"width":344,"height":12}},{"id":"385ed08c-5c2a-47d9-a4a2-b9a709ce1b14","block_type":"box","text":"Taxability Risk.","page_number":156,"box":{"x":118,"y":382,"width":119,"height":12}},{"id":"e82f14f8-5f60-4d60-a401-58243c912daa","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to","page_number":156,"box":{"x":238,"y":382,"width":555,"height":12}},{"id":"ed8afec1-5ffe-4491-82bf-d75e652add8f","block_type":"box","text":"shareholders by investing in tax-exempt or municipal securities in reliance at the time of purchase on","page_number":156,"box":{"x":116,"y":397,"width":753,"height":12}},{"id":"f535cd9b-d01b-4217-a306-dfa3eb5cb16f","block_type":"box","text":"an opinion of bond counsel to the issuer and, in the case of derivative securities, sponsors’ counsel,","page_number":156,"box":{"x":116,"y":413,"width":745,"height":12}},{"id":"08ab0c0d-e34c-4301-8512-69a18bc13499","block_type":"box","text":"that the interest paid on those securities will be excludable from gross income for U.S. federal income","page_number":156,"box":{"x":116,"y":428,"width":759,"height":12}},{"id":"f4dd9c45-bb8a-41b1-81fb-0ee73662b75b","block_type":"box","text":"tax purposes. Such securities, however, may be determined to pay, or have paid, taxable income","page_number":156,"box":{"x":116,"y":444,"width":726,"height":12}},{"id":"2cc98221-f1d0-4652-9b34-87f1be616aa5","block_type":"box","text":"subsequent to the Fund’s acquisition of the securities. In that event, the IRS may demand that the","page_number":156,"box":{"x":116,"y":459,"width":731,"height":12}},{"id":"6c69c3bd-1534-4fe2-88bf-1e5bec52d958","block_type":"box","text":"Fund pay U.S. federal income taxes on the affected interest income, and, if the Fund agrees to do so,","page_number":156,"box":{"x":117,"y":475,"width":758,"height":12}},{"id":"e503e2b6-2082-491c-9b6b-711f77495463","block_type":"box","text":"the Fund’s yield could be adversely affected. In addition, the treatment of dividends previously paid or","page_number":156,"box":{"x":116,"y":490,"width":758,"height":12}},{"id":"70b549fa-5d6a-4154-9621-34b9ce4df638","block_type":"box","text":"to be paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the","page_number":156,"box":{"x":116,"y":506,"width":724,"height":12}},{"id":"c6d91588-c2c4-42e4-9b63-d7854bd0817d","block_type":"box","text":"Fund’s shareholders to increased U.S. federal income tax liabilities. If the interest paid on any","page_number":156,"box":{"x":117,"y":521,"width":699,"height":12}},{"id":"65fe7e8c-1f8b-41c2-9593-dab838628149","block_type":"box","text":"tax-exempt or municipal security held by the Fund is subsequently determined to be taxable, the Fund","page_number":156,"box":{"x":116,"y":537,"width":762,"height":12}},{"id":"b89ca8fc-ae21-47b8-95e5-e389627f6c6c","block_type":"box","text":"will dispose of that security as soon as reasonably practicable. In addition, future laws, regulations,","page_number":156,"box":{"x":116,"y":552,"width":738,"height":12}},{"id":"544091ef-7645-4baa-9158-ed963e87a3a3","block_type":"box","text":"rulings or court decisions may cause interest on municipal securities to be subject, directly or indirectly,","page_number":156,"box":{"x":117,"y":568,"width":769,"height":12}},{"id":"3e491db5-29e1-47ff-b7b9-7a4eb7b56dec","block_type":"box","text":"to U.S. federal income taxation or interest on state municipal securities to be subject to state or local","page_number":156,"box":{"x":116,"y":583,"width":749,"height":12}},{"id":"3d5b2971-d728-47af-a456-5f4ab5f704ba","block_type":"box","text":"income taxation, or the value of state municipal securities to be subject to state or local intangible","page_number":156,"box":{"x":117,"y":599,"width":726,"height":12}},{"id":"57cc0683-95d0-457d-a084-f2b541716739","block_type":"box","text":"personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":156,"box":{"x":117,"y":614,"width":750,"height":12}},{"id":"cf3df909-e8ba-4da0-b018-02e51df684f4","block_type":"box","text":"tax-exempt status of such securities. Any such change could also affect the market price of such","page_number":156,"box":{"x":116,"y":630,"width":721,"height":12}},{"id":"697e7cad-22b0-4fb0-9207-4c9c09a06c9a","block_type":"box","text":"securities, and thus the value of an investment in the Fund.","page_number":156,"box":{"x":116,"y":645,"width":444,"height":11}},{"id":"cd464026-5e55-4278-9658-9305e11b331e","block_type":"box","text":"Temporary Defensive Measures.","page_number":156,"box":{"x":118,"y":676,"width":252,"height":12}},{"id":"aa7ce80c-ce37-423c-bcf6-715ab1b82035","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse","page_number":156,"box":{"x":376,"y":676,"width":498,"height":12}},{"id":"a9d25a7a-d540-451b-8cf9-b0ae67b30662","block_type":"box","text":"market, economic, political or other conditions, a Fund may depart from its principal investment","page_number":156,"box":{"x":117,"y":692,"width":697,"height":12}},{"id":"f2684485-43c9-4ef9-a180-2c87939afbb8","block_type":"box","text":"strategies and may invest without limitation in cash, high quality money market instruments, or other","page_number":156,"box":{"x":116,"y":707,"width":735,"height":12}},{"id":"c4cb214a-cdd0-4502-9259-438ff181cade","block_type":"box","text":"short term investments. Certain Funds may also invest in cash and other such instruments pending","page_number":156,"box":{"x":116,"y":723,"width":727,"height":12}},{"id":"281367e4-6979-4581-9cec-6b8265a7fe67","block_type":"box","text":"investment or to meet anticipated redemption requests. High quality money market instruments include","page_number":156,"box":{"x":117,"y":738,"width":755,"height":12}},{"id":"011fc267-efe3-4d9a-83ee-3a3e5e6f12e4","block_type":"box","text":"U.S. Government obligations, U.S. Government agency obligations, dollar denominated obligations of","page_number":156,"box":{"x":117,"y":754,"width":746,"height":12}},{"id":"1bbb2164-1966-4643-a26f-9d25ec356d89","block_type":"box","text":"foreign issuers, bank obligations, including U.S. subsidiaries and branches of foreign banks, corporate","page_number":156,"box":{"x":116,"y":769,"width":750,"height":12}},{"id":"4c5d75db-e363-48df-a137-83be2d7e3b4a","block_type":"box","text":"obligations, commercial paper, repurchase agreements and obligations of supranational organizations.","page_number":156,"box":{"x":116,"y":785,"width":753,"height":12}},{"id":"5cfdf258-59d1-41c3-bd77-14c77b745282","block_type":"box","text":"Generally, such obligations will mature within one year from the date of settlement, but may mature","page_number":156,"box":{"x":117,"y":800,"width":727,"height":12}},{"id":"fc0b7195-5936-4688-9d37-dfe241037038","block_type":"box","text":"within two years from the date of settlement. Temporary defensive measures may affect a Fund’s ability","page_number":156,"box":{"x":116,"y":816,"width":762,"height":12}},{"id":"514732ed-afe7-49f4-badb-f3f8e9864877","block_type":"box","text":"to achieve its investment objective.","page_number":156,"box":{"x":116,"y":831,"width":262,"height":12}},{"id":"1d1a5078-f932-4963-afbc-3701612c053e","block_type":"box","text":"U.S. Government Obligations.","page_number":156,"box":{"x":117,"y":862,"width":236,"height":12}},{"id":"054a12c8-63a3-41d8-b1cf-3987971eac80","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S.","page_number":156,"box":{"x":354,"y":862,"width":510,"height":12}},{"id":"7471fe10-6c30-4549-8ca6-8106fa7942de","block_type":"box","text":"Government and U.S. Government agencies and instrumentalities. Obligations of certain agencies and","page_number":156,"box":{"x":117,"y":878,"width":767,"height":12}},{"id":"58bdc3f0-2b93-4406-8ccd-432ce29fce07","block_type":"box","text":"II-97","page_number":156,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"48e73c28-0514-4be6-9831-ec56c6280af4","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":156,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"226cc317-1b1e-406f-897a-b857ec574ace","block_type":"box","text":"instrumentalities of the U.S. Government are supported by the full faith and credit of the U.S. Treasury.","page_number":157,"box":{"x":117,"y":87,"width":767,"height":12}},{"id":"c12e2e12-1aa2-4e40-93af-598c1107a485","block_type":"box","text":"Others are supported by the right of the issuer to borrow from the U.S. Treasury; and still others are","page_number":157,"box":{"x":116,"y":102,"width":745,"height":13}},{"id":"894bd63c-f14b-48c2-a36e-b8d0882e4bb4","block_type":"box","text":"supported only by the credit of the agency or instrumentality issuing the obligation. No assurance can","page_number":157,"box":{"x":116,"y":118,"width":757,"height":12}},{"id":"13653dd0-0a29-4ea9-8641-51323adb14f0","block_type":"box","text":"be given that the U.S. Government will provide financial support to U.S. Government-sponsored","page_number":157,"box":{"x":117,"y":134,"width":715,"height":12}},{"id":"096de294-e716-4e39-9ada-93dd4a847926","block_type":"box","text":"instrumentalities if it is not obligated to do so by law. Certain U.S. Treasury and agency securities may","page_number":157,"box":{"x":117,"y":149,"width":762,"height":12}},{"id":"b2f3d4c2-e918-4284-b0ac-191c72843fd2","block_type":"box","text":"be held by trusts that issue participation certificates (such as Treasury income growth receipts and","page_number":157,"box":{"x":117,"y":165,"width":734,"height":12}},{"id":"8ffeed65-80e5-4e78-8cc1-6d8a7ed85e30","block_type":"box","text":"certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":157,"box":{"x":116,"y":180,"width":740,"height":12}},{"id":"a60197b6-7395-45c8-83e2-f87b20785edc","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or","page_number":157,"box":{"x":116,"y":196,"width":759,"height":12}},{"id":"42b4a77e-88b4-4753-9211-c8cb6fe357a8","block_type":"box","text":"the future principal payments on U.S. Government obligations. These instruments are issued at a","page_number":157,"box":{"x":116,"y":211,"width":727,"height":12}},{"id":"e0c46a7d-0280-43a3-986b-c448be81c4cd","block_type":"box","text":"discount to their “face value” and may (particularly in the case of stripped mortgage-backed securities)","page_number":157,"box":{"x":116,"y":227,"width":763,"height":12}},{"id":"e2ff791c-3c80-412a-b8d5-e70f80cb5418","block_type":"box","text":"exhibit greater price volatility than ordinary debt securities because of the manner in which their","page_number":157,"box":{"x":116,"y":242,"width":713,"height":12}},{"id":"2fd7989d-4101-4512-a233-ce17bd8d293d","block_type":"box","text":"principal and interest are returned to investors.","page_number":157,"box":{"x":117,"y":258,"width":351,"height":11}},{"id":"029d70dd-f5ef-4355-a204-3f2154be1b57","block_type":"box","text":"Examples of the types of U.S. Government obligations that may be held by the Funds include U.S.","page_number":157,"box":{"x":117,"y":289,"width":734,"height":12}},{"id":"fc0a085b-5e4d-485d-8580-d72928668116","block_type":"box","text":"Treasury Bills, Treasury Notes and Treasury Bonds and the obligations of the Federal Housing","page_number":157,"box":{"x":116,"y":304,"width":708,"height":12}},{"id":"c80b7950-3865-483e-ade8-26cd2326ab6b","block_type":"box","text":"Administration, Farmers Home Administration, Export-Import Bank of the United States, Small","page_number":157,"box":{"x":116,"y":320,"width":703,"height":12}},{"id":"a8fa73ce-5d72-4182-8bc1-434bc9ca5e31","block_type":"box","text":"Business Administration, Ginnie Mae, Fannie Mae, Federal Financing Bank, General Services","page_number":157,"box":{"x":117,"y":335,"width":702,"height":12}},{"id":"e9fc7c57-5d4a-42f4-ae10-bda44c1c9f2c","block_type":"box","text":"Administration, Student Loan Marketing Association, Central Bank for Cooperatives, Federal Home","page_number":157,"box":{"x":116,"y":351,"width":741,"height":12}},{"id":"5c4f3589-0f6d-477f-854c-71197f3676c4","block_type":"box","text":"Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm Credit Banks","page_number":157,"box":{"x":117,"y":366,"width":771,"height":11}},{"id":"2fcd51ff-87c5-4f90-99a0-1fe6e72e0ab3","block_type":"box","text":"System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":157,"box":{"x":116,"y":382,"width":772,"height":12}},{"id":"cc9e3c49-6b45-488e-ab88-2a1d98dcc317","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government","page_number":157,"box":{"x":117,"y":397,"width":717,"height":12}},{"id":"a6c84183-b8e1-478f-a4f7-b336e191eb3e","block_type":"box","text":"agencies and instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae","page_number":157,"box":{"x":116,"y":413,"width":754,"height":12}},{"id":"459a6028-9447-4346-a15f-f1f0a7f4492e","block_type":"box","text":"and Freddie Mac.","page_number":157,"box":{"x":116,"y":428,"width":135,"height":10}},{"id":"9871fc10-c4dc-447d-83f7-2c4b327b134c","block_type":"box","text":"U.S. Treasury Obligations.","page_number":157,"box":{"x":117,"y":459,"width":194,"height":12}},{"id":"55cbba1f-e4b8-4d29-bd19-cfbccd757d95","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of","page_number":157,"box":{"x":313,"y":459,"width":548,"height":12}},{"id":"5c1074f9-df8d-496b-b985-949abdc5b843","block_type":"box","text":"issuance and other characteristics. Obligations of U.S. Government agencies and authorities are","page_number":157,"box":{"x":117,"y":475,"width":721,"height":12}},{"id":"790fb5ff-b671-4d0e-aefd-0b0ed2227cee","block_type":"box","text":"supported by varying degrees of credit but generally are not backed by the full faith and credit of the","page_number":157,"box":{"x":116,"y":490,"width":747,"height":12}},{"id":"67c93d81-b1d4-4293-95b9-801a7feda820","block_type":"box","text":"U.S. Government. No assurance can be given that the U.S. Government will provide financial support","page_number":157,"box":{"x":117,"y":506,"width":758,"height":12}},{"id":"870348fe-80c7-4e95-8e0f-fb2c0d280d95","block_type":"box","text":"to its agencies and authorities if it is not obligated by law to do so.","page_number":157,"box":{"x":116,"y":521,"width":493,"height":12}},{"id":"44716179-d2ba-48ff-b15f-fab6d972de73","block_type":"box","text":"U.S. Treasury Rolls.","page_number":157,"box":{"x":117,"y":552,"width":153,"height":12}},{"id":"7ce5487b-3b19-480c-976d-0cf725474a5e","block_type":"box","text":"Certain Funds may invest in U.S. Treasury","page_number":157,"box":{"x":271,"y":552,"width":320,"height":12}},{"id":"bfd36fba-63a8-4b4d-9e02-a6e40f9228ba","block_type":"box","text":"rolls. In a U.S. Treasury roll transaction,","page_number":157,"box":{"x":592,"y":552,"width":292,"height":12}},{"id":"dfcf8129-8664-40be-a121-fbb3d79b4cf7","block_type":"box","text":"the Fund sells a treasury security to a counterpa","page_number":157,"box":{"x":116,"y":568,"width":350,"height":12}},{"id":"ce198055-74be-4471-ae3f-58a32a6bb3c7","block_type":"box","text":"rty with a simultaneous agreement to repurchase the","page_number":157,"box":{"x":468,"y":568,"width":387,"height":12}},{"id":"180ec17a-8490-456c-a44b-8f9510388295","block_type":"box","text":"same security at an agreed upon price and future settl","page_number":157,"box":{"x":116,"y":583,"width":392,"height":12}},{"id":"b2d35630-bacd-4c4a-859b-a6a1ace0f6ec","block_type":"box","text":"ement date. U.S. Treasury roll transactions may","page_number":157,"box":{"x":510,"y":583,"width":353,"height":12}},{"id":"704aa4d0-07bd-412c-a118-425d55cc746f","block_type":"box","text":"incrementally adjust the average maturity of a Fund’","page_number":157,"box":{"x":117,"y":599,"width":376,"height":12}},{"id":"992fd923-55e4-4099-977c-2f2f47661647","block_type":"box","text":"s portfolio and increase the interest yield on the","page_number":157,"box":{"x":494,"y":599,"width":348,"height":12}},{"id":"4a5101a5-f28c-4713-8607-d750e41a6f39","block_type":"box","text":"Fund’s portfolio by extending the average maturity of the portfolio in a normal yield curve environment.","page_number":157,"box":{"x":117,"y":614,"width":746,"height":12}},{"id":"7e01fd91-0f38-4844-8df1-368346077d4b","block_type":"box","text":"During the period before the settlement","page_number":157,"box":{"x":117,"y":630,"width":284,"height":12}},{"id":"b36e0af5-9b8c-4618-be16-a54d242a527e","block_type":"box","text":"date of a U.S. Treasury roll, a","page_number":157,"box":{"x":401,"y":630,"width":224,"height":12}},{"id":"c41a5d25-3acd-4ed4-8841-bc7e9fab2624","block_type":"box","text":"Fund continues to earn interest on","page_number":157,"box":{"x":626,"y":630,"width":254,"height":9}},{"id":"8d35a7e7-345e-428c-a36a-599837583627","block_type":"box","text":"the securities it is selling; however, it does not earn in","page_number":157,"box":{"x":116,"y":645,"width":387,"height":12}},{"id":"52e0f589-fce6-4455-aaa0-614e80035c5e","block_type":"box","text":"terest on the securities it is purchasing until after the","page_number":157,"box":{"x":504,"y":645,"width":383,"height":12}},{"id":"0666ad47-a729-4631-9dd8-59661411b189","block_type":"box","text":"settlement date. A Fund could suffer an opportunity loss","page_number":157,"box":{"x":116,"y":661,"width":406,"height":12}},{"id":"f1723b51-680a-428e-9235-3fa7b2a90f00","block_type":"box","text":"if the counterparty to the U.S. Treasury roll","page_number":157,"box":{"x":528,"y":661,"width":308,"height":12}},{"id":"5790514e-aefa-496c-88c9-5bc491c0214c","block_type":"box","text":"transaction failed to perform its obligations on the settlement date.","page_number":157,"box":{"x":116,"y":676,"width":478,"height":12}},{"id":"8e81d856-2200-4cf6-a398-e1c7b3e8c2e6","block_type":"box","text":"The market value of the securities that a Fund is required to purchase may decline below the agreed","page_number":157,"box":{"x":116,"y":707,"width":745,"height":12}},{"id":"c3db4713-6ad5-4378-9e6d-89c11742f625","block_type":"box","text":"upon purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be","page_number":157,"box":{"x":117,"y":723,"width":732,"height":12}},{"id":"2c51e328-441c-4315-93b4-8dbf8de8eb6b","block_type":"box","text":"deemed to involve leverage. There is no assurance that U.S. Treasury rolls can be successfully","page_number":157,"box":{"x":116,"y":738,"width":709,"height":12}},{"id":"91c4d4d3-b1a7-4350-b79a-6cd4c99fe81e","block_type":"box","text":"employed.","page_number":157,"box":{"x":116,"y":754,"width":76,"height":12}},{"id":"f65ed966-69d7-4b4b-9a04-17a865a04746","block_type":"box","text":"Utility Industries.","page_number":157,"box":{"x":117,"y":785,"width":134,"height":12}},{"id":"6c3656fe-0331-43a5-9adf-b7f074e265a2","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an","page_number":157,"box":{"x":259,"y":785,"width":566,"height":12}},{"id":"5180937a-fd01-4f24-bc31-4f18ebffac95","block_type":"box","text":"adequate return on invested capital, difficulty in financing large construction programs during an","page_number":157,"box":{"x":116,"y":800,"width":710,"height":12}},{"id":"6c013cd3-4f8d-4b2f-afb9-10313102fdc0","block_type":"box","text":"inflationary period, restrictions on operations and increased cost and delays attributable to","page_number":157,"box":{"x":117,"y":816,"width":667,"height":12}},{"id":"983be927-d845-43cd-a58b-8b4c23afe2c5","block_type":"box","text":"environmental considerations and regulation, difficulty in raising capital in adequate amounts on","page_number":157,"box":{"x":116,"y":831,"width":715,"height":12}},{"id":"5261d758-2916-4950-a4a8-61a315259ef4","block_type":"box","text":"reasonable terms in periods of high inflation and unsettled capital markets, technological innovations","page_number":157,"box":{"x":117,"y":847,"width":750,"height":12}},{"id":"1b1c7c3e-d04a-4ff7-9768-67e0a9b1217a","block_type":"box","text":"that may render existing plants, equipment or products obsolete, the potential impact of natural or","page_number":157,"box":{"x":116,"y":862,"width":729,"height":12}},{"id":"efb73c16-0c7c-4327-ae04-60ccab3aa6ae","block_type":"box","text":"man-made disasters, increased costs and reduced availability of certain types of fuel, occasional","page_number":157,"box":{"x":117,"y":878,"width":721,"height":12}},{"id":"6f590560-d613-479e-8833-4cdd606b4261","block_type":"box","text":"II-98","page_number":157,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"fca54899-7f35-42b7-abac-9de6ba3cecd0","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":157,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9eeec667-73c8-4941-9bad-efcb4dbb682e","block_type":"box","text":"reduced availability and high costs of natural gas for resale, the effects of energy conservation, the","page_number":158,"box":{"x":117,"y":87,"width":736,"height":12}},{"id":"e5cfb22c-5574-442f-aa34-e13b94c1df82","block_type":"box","text":"effects of a national energy policy and lengthy delays and greatly increased costs and other problems","page_number":158,"box":{"x":116,"y":102,"width":759,"height":13}},{"id":"1d589c96-8495-43e4-8d40-d06bd3a8b506","block_type":"box","text":"associated with the design, construction, licensing, regulation and operation of nuclear facilities for","page_number":158,"box":{"x":116,"y":118,"width":735,"height":12}},{"id":"05d66b3a-1e12-48a4-b154-ed939e37a358","block_type":"box","text":"electric generation, including, among other considerations, the problems associated with the use of","page_number":158,"box":{"x":116,"y":134,"width":740,"height":12}},{"id":"d2e4fc9e-90ac-4c0f-a3c0-96dbb0cb8846","block_type":"box","text":"radioactive materials and the disposal of radioactive wastes. There are substantial differences among","page_number":158,"box":{"x":117,"y":149,"width":757,"height":12}},{"id":"e5662b5c-74bd-41d5-bc2b-ff5aa5767c22","block_type":"box","text":"the regulatory practices and policies of various jurisdictions, and any given regulatory agency may","page_number":158,"box":{"x":116,"y":165,"width":732,"height":12}},{"id":"50e4d757-5a53-4f81-ac34-8db15f83eaed","block_type":"box","text":"make major shifts in policy from time to time. There is no assurance that regulatory authorities will, in","page_number":158,"box":{"x":117,"y":180,"width":752,"height":12}},{"id":"7b98498f-86e3-4813-93b4-e44c8f295777","block_type":"box","text":"the future, grant rate increases or that such increases will be adequate to permit the payment of","page_number":158,"box":{"x":116,"y":196,"width":716,"height":12}},{"id":"cdf50b73-61ff-4563-aec6-edb9f223b2e1","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future","page_number":158,"box":{"x":116,"y":211,"width":735,"height":12}},{"id":"c9a49708-2eda-4169-9f6c-7d6c4c0adbfa","block_type":"box","text":"regulatory legislation may make it even more difficult for utilities to obtain adequate relief. Certain of the","page_number":158,"box":{"x":117,"y":227,"width":771,"height":12}},{"id":"1613e148-cb44-4977-851d-44ae96d2e6cb","block_type":"box","text":"issuers of securities held in the Fund’s portfolio may own or operate nuclear generating facilities.","page_number":158,"box":{"x":117,"y":242,"width":720,"height":12}},{"id":"261d1e51-e522-4d53-86aa-5612261546c8","block_type":"box","text":"Governmental authorities may from time to time review existing policies and impose additional","page_number":158,"box":{"x":117,"y":258,"width":702,"height":12}},{"id":"f7a2724a-2c85-4b08-b2c3-fcf79311555b","block_type":"box","text":"requirements governing the licensing, construction and operation of nuclear power plants. Prolonged","page_number":158,"box":{"x":117,"y":273,"width":751,"height":12}},{"id":"f66a41ae-5bd6-4c4e-ad5a-3f36fe3e2e47","block_type":"box","text":"changes in climatic conditions can also have a significant impact on both the revenues of an electric","page_number":158,"box":{"x":116,"y":289,"width":746,"height":12}},{"id":"53b4bbfb-0ec0-45ad-8c63-245c721d6d52","block_type":"box","text":"and gas utility as well as the expenses of a utility, particularly a hydro-based electric utility.","page_number":158,"box":{"x":116,"y":304,"width":675,"height":12}},{"id":"c27ca9f4-db15-4a4e-89f5-e56a450683c1","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic","page_number":158,"box":{"x":117,"y":335,"width":747,"height":12}},{"id":"1bf2a264-6619-438f-805e-66b259bb9a14","block_type":"box","text":"and international competition, and governmental limitations on rates charged to customers. The value","page_number":158,"box":{"x":116,"y":351,"width":759,"height":12}},{"id":"3c7522a8-b7af-4256-983d-fd7290f40f13","block_type":"box","text":"of regulated utility debt securities and, to a lesser extent, equity securities, tends to have an inverse","page_number":158,"box":{"x":116,"y":366,"width":743,"height":12}},{"id":"e6b0fc1c-fef2-4b5b-8e04-c1286a191bc5","block_type":"box","text":"relationship to the movement of interest rates and therefore may lead to volatility in performance.","page_number":158,"box":{"x":117,"y":382,"width":723,"height":12}},{"id":"a8f2a977-9036-4198-8731-74c4bccd52f6","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the","page_number":158,"box":{"x":117,"y":413,"width":771,"height":12}},{"id":"e11c2656-b7b6-4681-a1f3-ec4d0b3fe1be","block_type":"box","text":"United States, most utility companies are regulated by state and/or federal authorities. Such regulation","page_number":158,"box":{"x":117,"y":428,"width":764,"height":12}},{"id":"c9ee6020-d0a5-486d-96cf-97473d660e51","block_type":"box","text":"is intended to ensure appropriate standards of service and adequate capacity to meet public demand.","page_number":158,"box":{"x":117,"y":444,"width":759,"height":12}},{"id":"1c5c15b1-8a2d-4962-bb0c-168744590188","block_type":"box","text":"Generally, prices are also regulated in the United States and in foreign countries with the intention of","page_number":158,"box":{"x":117,"y":459,"width":750,"height":12}},{"id":"e6ef7b66-13ce-455e-84e8-28acd96d263e","block_type":"box","text":"protecting the public while ensuring that the rate of return earned by utility companies is sufficient to","page_number":158,"box":{"x":117,"y":475,"width":744,"height":12}},{"id":"f0d89674-f90b-442c-94f1-8b32bd168460","block_type":"box","text":"allow them to attract capital in order to grow and continue to provide appropriate services. There can","page_number":158,"box":{"x":116,"y":490,"width":751,"height":12}},{"id":"ec292dd0-aad1-42ae-b3c6-b12af14b3d13","block_type":"box","text":"be no assurance that such pricing policies or rates of return will continue in the future.","page_number":158,"box":{"x":117,"y":506,"width":640,"height":12}},{"id":"bf49e69c-110c-458e-bb72-718ad584ab38","block_type":"box","text":"The nature of regulation of the utility industries continues to evolve both in the United States and in","page_number":158,"box":{"x":116,"y":537,"width":738,"height":12}},{"id":"c4c62860-40fc-4402-86d7-e0f2ae050ac6","block_type":"box","text":"foreign countries. In recent years, changes in regulation in the United States increasingly have allowed","page_number":158,"box":{"x":116,"y":552,"width":767,"height":12}},{"id":"7ff577bc-7645-4817-90e1-643781e50251","block_type":"box","text":"utility companies to provide services and products outside their traditional geographic areas and lines","page_number":158,"box":{"x":117,"y":568,"width":755,"height":12}},{"id":"e0bd5b34-1eae-438f-808b-60f2006d409f","block_type":"box","text":"of business, creating new areas of competition within the industries. In some instances, utility","page_number":158,"box":{"x":116,"y":583,"width":696,"height":12}},{"id":"9b46f7e8-55ca-4286-88dd-18a7397d9832","block_type":"box","text":"companies are operating on an unregulated basis. Because of trends toward deregulation and the","page_number":158,"box":{"x":116,"y":599,"width":732,"height":12}},{"id":"0dbf2dc7-2690-4d71-af66-5b9a900909cf","block_type":"box","text":"evolution of independent power producers as well as new entrants to the field of telecommunications,","page_number":158,"box":{"x":116,"y":614,"width":757,"height":12}},{"id":"c3b6c005-401e-417c-a52b-83682e56d369","block_type":"box","text":"non-regulated providers of utility services have become a significant part of their respective industries.","page_number":158,"box":{"x":117,"y":630,"width":761,"height":12}},{"id":"5ec9a913-efd1-4bc4-af4c-012bbc3a490c","block_type":"box","text":"The Manager believes that the emergence of competition and deregulation will result in certain utility","page_number":158,"box":{"x":116,"y":645,"width":750,"height":12}},{"id":"326266c4-b2b8-44d1-92da-449ba85c547d","block_type":"box","text":"companies being able to earn more than their traditional regulated rates of return, while others may be","page_number":158,"box":{"x":116,"y":661,"width":759,"height":12}},{"id":"0c466a18-4597-496e-bf81-e97f8103e964","block_type":"box","text":"forced to defend their core business from increased competition and may be less profitable. Reduced","page_number":158,"box":{"x":116,"y":676,"width":751,"height":12}},{"id":"82d02031-071e-4510-a48b-31d166328da9","block_type":"box","text":"profitability, as well as new uses of funds (such as for expansion, operations or stock buybacks) could","page_number":158,"box":{"x":117,"y":692,"width":754,"height":12}},{"id":"93bfcf7f-7dba-4045-ba80-8373710aa609","block_type":"box","text":"result in cuts in dividend payout rates. As deregulation allows utility companies to diversify outside of","page_number":158,"box":{"x":117,"y":707,"width":746,"height":12}},{"id":"ec0f231d-3861-42ea-ae4e-4d5d3e4d668a","block_type":"box","text":"their original geographic regions and their traditional lines of business, utility companies may engage in","page_number":158,"box":{"x":116,"y":723,"width":764,"height":12}},{"id":"c0662aee-d089-4d10-a251-e160ec52e760","block_type":"box","text":"riskier ventures. Therefore, deregulation may eliminate restrictions on the maximum level of profits of","page_number":158,"box":{"x":117,"y":738,"width":749,"height":12}},{"id":"70830cb7-ae46-42e2-bb6d-7ea2d34b9ccc","block_type":"box","text":"certain utility companies, but may also subject these companies to greater risk of loss. The Manager","page_number":158,"box":{"x":116,"y":754,"width":745,"height":12}},{"id":"7824bcf8-b611-4916-88b5-53351b5637e8","block_type":"box","text":"seeks to take advantage of favorable investment opportunities that may arise from these structural","page_number":158,"box":{"x":116,"y":769,"width":730,"height":12}},{"id":"5612c43b-5bed-4c67-bbf2-ecbfa6af1e7f","block_type":"box","text":"changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":158,"box":{"x":116,"y":785,"width":741,"height":12}},{"id":"068af937-b1ad-4d11-b52d-ac9f38f5177a","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":158,"box":{"x":117,"y":816,"width":749,"height":12}},{"id":"d24061dd-bfe2-479e-ae70-eb66620f9cc4","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by","page_number":158,"box":{"x":116,"y":831,"width":761,"height":12}},{"id":"6ea671dc-fb8a-4f5c-b5d3-4a2b89b9b8ed","block_type":"box","text":"their respective governments than utilities in the United States and, as in the United States, generally","page_number":158,"box":{"x":116,"y":847,"width":755,"height":12}},{"id":"fc619d2a-f4b0-4961-8787-e3eb443f8424","block_type":"box","text":"are required to seek government approval for rate increases. In addition, many foreign utilities use","page_number":158,"box":{"x":116,"y":862,"width":733,"height":12}},{"id":"f540893e-c993-465c-92a3-b6bd45bec18f","block_type":"box","text":"fuels that may cause more pollution than those used in the United States, which may require such","page_number":158,"box":{"x":116,"y":878,"width":731,"height":12}},{"id":"f5af468a-9d61-49c3-91d8-0dfde9237d25","block_type":"box","text":"II-99","page_number":158,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"1a59da77-d3c5-49d2-a1c3-3063d4abf1b8","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":158,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"eaf61945-2acd-4b41-a95e-af848e0b19d8","block_type":"box","text":"utilities to invest in pollution control equipment to meet any proposed pollution restrictions. Foreign","page_number":159,"box":{"x":117,"y":87,"width":733,"height":12}},{"id":"b7d718e8-8e7f-4a02-b877-47a1f0482717","block_type":"box","text":"regulatory systems vary from country to country and may evolve in ways different from regulation in the","page_number":159,"box":{"x":117,"y":102,"width":770,"height":13}},{"id":"7ac83f3f-40d8-4fdf-8787-8b7bcc9e3e95","block_type":"box","text":"United States.","page_number":159,"box":{"x":117,"y":118,"width":109,"height":10}},{"id":"50fc461e-6cfc-475c-8ce3-25a6466c16d3","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment","page_number":159,"box":{"x":116,"y":149,"width":676,"height":12}},{"id":"6fe4c653-eb3b-4f1b-bfb6-dc91757b765f","block_type":"box","text":"opportunities throughout the world. For example, the rapid growth of certain foreign economies will","page_number":159,"box":{"x":116,"y":165,"width":736,"height":12}},{"id":"7c5c0f64-abbd-45be-b4dc-bf4bf7f04eb9","block_type":"box","text":"necessitate expansion of capacity in the utility industries in those countries. Although many foreign","page_number":159,"box":{"x":117,"y":180,"width":735,"height":12}},{"id":"e7f12aba-27e5-4ba1-8055-b7142096c46e","block_type":"box","text":"utility companies currently are government-owned, thereby limiting current investment opportunities for","page_number":159,"box":{"x":117,"y":196,"width":766,"height":12}},{"id":"8f95cfeb-1de6-4a0c-a833-a5a0ece8a8f4","block_type":"box","text":"a Fund, the Manager believes that, in order to attract significant capital for growth, foreign governments","page_number":159,"box":{"x":116,"y":211,"width":772,"height":12}},{"id":"7ece9f62-19b0-489d-98bd-02f004b40f14","block_type":"box","text":"are likely to seek global investors through the privatization of their utility industries. Privatization, which","page_number":159,"box":{"x":116,"y":227,"width":765,"height":12}},{"id":"3eb2f226-0a0a-4835-866d-f2bbc7887b97","block_type":"box","text":"refers to the trend toward investor ownership of assets rather than government ownership, is expected","page_number":159,"box":{"x":117,"y":242,"width":764,"height":12}},{"id":"f5cfcbfb-8f25-4d59-aa26-163234b376e9","block_type":"box","text":"to occur in newer, faster-growing economies and in mature economies. Of course, there is no","page_number":159,"box":{"x":116,"y":258,"width":699,"height":12}},{"id":"a236a0e2-7e9e-43a9-9de2-318c1a2078e1","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign","page_number":159,"box":{"x":116,"y":273,"width":726,"height":12}},{"id":"000c9107-6713-4672-811b-5b667c449d47","block_type":"box","text":"markets will increase.","page_number":159,"box":{"x":117,"y":289,"width":164,"height":9}},{"id":"9054cec4-f0d2-4a84-98ec-c33c56983f2c","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and","page_number":159,"box":{"x":116,"y":320,"width":732,"height":12}},{"id":"6ce4fda0-2136-4939-901a-04fe7982bea0","block_type":"box","text":"development in the geographic areas in which they do business. The Manager will take into account","page_number":159,"box":{"x":116,"y":335,"width":747,"height":12}},{"id":"07408391-4394-4dbc-8dd2-d8c611c2dd59","block_type":"box","text":"anticipated economic growth rates and other economic developments when selecting securities of","page_number":159,"box":{"x":116,"y":351,"width":732,"height":12}},{"id":"ee29ed20-2dde-441e-bdda-97b5899d12b2","block_type":"box","text":"utility companies.","page_number":159,"box":{"x":117,"y":366,"width":132,"height":12}},{"id":"1f9c5f17-6310-4cb2-a64b-d0cb7ccce41e","block_type":"box","text":"Electric.","page_number":159,"box":{"x":116,"y":397,"width":58,"height":10}},{"id":"b623864b-3bec-48c9-ba17-0556723e7ceb","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the","page_number":159,"box":{"x":176,"y":397,"width":630,"height":12}},{"id":"e10b9514-8c4b-46f5-b162-4037edc5ec9e","block_type":"box","text":"generation, transmission and sale of electric energy, although many also provide other energy-related","page_number":159,"box":{"x":116,"y":413,"width":760,"height":12}},{"id":"31e2f8e9-ae20-430d-8b5d-7e3b89de3fc9","block_type":"box","text":"services. In the past, electric utility companies, in general, have been favorably affected by lower fuel","page_number":159,"box":{"x":116,"y":428,"width":754,"height":12}},{"id":"0ec85ba5-41b9-4ffe-aa07-d779b12d14dd","block_type":"box","text":"and financing costs and the full or near completion of major construction programs. In addition, many","page_number":159,"box":{"x":116,"y":444,"width":754,"height":12}},{"id":"b51656c0-15d9-4440-a432-3e84fd8819bd","block_type":"box","text":"of these companies have generated cash flows in excess of current operating expenses and","page_number":159,"box":{"x":116,"y":459,"width":690,"height":12}},{"id":"ff2326ec-2977-4bad-8f41-8e8c37656634","block_type":"box","text":"construction expenditures, permitting some degree of diversification into unregulated businesses.","page_number":159,"box":{"x":116,"y":475,"width":727,"height":12}},{"id":"68f96455-89ea-4aaf-9618-358df04428f8","block_type":"box","text":"Some electric utilities have also taken advantage of the right to sell power outside of their traditional","page_number":159,"box":{"x":116,"y":490,"width":744,"height":12}},{"id":"df2c8d2f-a8a0-4233-a6ce-34f99ee41167","block_type":"box","text":"geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":159,"box":{"x":116,"y":506,"width":758,"height":12}},{"id":"551d3b5b-5815-4751-989c-224098e55306","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital","page_number":159,"box":{"x":117,"y":521,"width":714,"height":12}},{"id":"503835d6-93e8-460f-af09-cad10e0cde4e","block_type":"box","text":"construction programs, costs associated with compliance with environmental and safety regulations","page_number":159,"box":{"x":116,"y":537,"width":744,"height":12}},{"id":"75b405f5-8ac3-42ce-b53d-d41fc550846a","block_type":"box","text":"and changes in the regulatory climate. As interest rates declined, many utilities refinanced high cost","page_number":159,"box":{"x":116,"y":552,"width":744,"height":12}},{"id":"60d0d7e1-d35f-4d08-bdef-04a39ae1286a","block_type":"box","text":"debt and in doing so improved their fixed charges coverage. Regulators, however, lowered allowed","page_number":159,"box":{"x":116,"y":568,"width":740,"height":12}},{"id":"edfad2f6-fc0f-4c1f-beb9-30adfbf7f809","block_type":"box","text":"rates of return as interest rates declined and thereby caused the benefits of the rate declines to be","page_number":159,"box":{"x":117,"y":583,"width":734,"height":12}},{"id":"26e7cdf8-a045-4e6b-b2be-a2f582c6c110","block_type":"box","text":"shared wholly or in part with customers. In a period of rising interest rates, the allowed rates of return","page_number":159,"box":{"x":116,"y":599,"width":754,"height":12}},{"id":"ff27cfe1-0206-4973-9d08-193e0cf859f3","block_type":"box","text":"may not keep pace with the utilities’ increased costs. The construction and operation of nuclear power","page_number":159,"box":{"x":117,"y":614,"width":760,"height":12}},{"id":"655a88c1-dd58-4a3d-81d1-8502ece01d01","block_type":"box","text":"facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear Regulatory","page_number":159,"box":{"x":116,"y":630,"width":686,"height":12}},{"id":"f0325818-14a4-4709-aff5-852a54598ae2","block_type":"box","text":"Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in","page_number":159,"box":{"x":117,"y":645,"width":727,"height":12}},{"id":"bbb2d988-b1d0-49b3-9b27-51c71240efc8","block_type":"box","text":"higher operating costs and higher capital expenditures, with the risk that the regulators may disallow","page_number":159,"box":{"x":117,"y":661,"width":743,"height":12}},{"id":"71c1239f-cc8e-4a54-be11-10ff78e25cbc","block_type":"box","text":"inclusion of these costs in rate authorizations or the risk that a company may not be permitted to","page_number":159,"box":{"x":117,"y":676,"width":713,"height":12}},{"id":"74ceaa89-b5de-41c1-b591-f9c194fcf838","block_type":"box","text":"operate or complete construction of a facility. In addition, operators of nuclear power plants may be","page_number":159,"box":{"x":116,"y":692,"width":735,"height":12}},{"id":"bb5eedba-bad5-4c06-ad01-4b995cde80ad","block_type":"box","text":"subject to significant costs for disposal of nuclear fuel and for decommissioning such plants.","page_number":159,"box":{"x":116,"y":707,"width":681,"height":12}},{"id":"9fe91900-3585-484f-8c96-a5dad966d89d","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected","page_number":159,"box":{"x":116,"y":738,"width":760,"height":12}},{"id":"cd249160-f1f3-491e-ba9e-092e39cbb370","block_type":"box","text":"to be impacted to a greater extent in the future by the division of their asset base. Electric utility","page_number":159,"box":{"x":116,"y":754,"width":706,"height":12}},{"id":"e426b7d5-565d-4b41-9c75-1e8a4659325b","block_type":"box","text":"companies that focus more on the generation of electricity may be assigned less favorable ratings as","page_number":159,"box":{"x":116,"y":769,"width":749,"height":12}},{"id":"9aae7094-e5cf-435e-8e1d-7b6a40fc9f0c","block_type":"box","text":"this business is expected to be competitive and the least regulated. On the other hand, companies that","page_number":159,"box":{"x":116,"y":785,"width":763,"height":12}},{"id":"3e747a26-3a1f-45a7-9160-93ad26f59016","block_type":"box","text":"focus on transmission and distribution, which is expected to be the least competitive and the more","page_number":159,"box":{"x":116,"y":800,"width":727,"height":12}},{"id":"a4628dde-d7a5-49ec-a8ca-6eae046e8c27","block_type":"box","text":"regulated part of the business, may see higher ratings given the greater predictability of cash flow.","page_number":159,"box":{"x":117,"y":816,"width":726,"height":12}},{"id":"ed4b667b-5e40-4707-a06a-2df5e38e997e","block_type":"box","text":"A number of states are considering or have","page_number":159,"box":{"x":116,"y":847,"width":319,"height":12}},{"id":"fa48bceb-64af-4835-bd21-e90b1fba7df0","block_type":"box","text":"enacted deregulation proposals. The introduction of","page_number":159,"box":{"x":436,"y":847,"width":379,"height":12}},{"id":"f1f205f0-15af-4d14-9c76-ef82b984047c","block_type":"box","text":"competition into the industry as a result of such","page_number":159,"box":{"x":116,"y":862,"width":342,"height":12}},{"id":"ee753031-754b-48ae-a251-28fa2537d5cc","block_type":"box","text":"deregulation has at times resulted in lower revenue,","page_number":159,"box":{"x":458,"y":862,"width":386,"height":12}},{"id":"d7f8a7c5-0e4e-423e-be5f-9354b7d465ef","block_type":"box","text":"lower credit ratings, increased default risk, and lower","page_number":159,"box":{"x":117,"y":878,"width":386,"height":12}},{"id":"8d0f095b-1206-4c2d-b8ad-4141dc283151","block_type":"box","text":"electric utility security prices. Such increased","page_number":159,"box":{"x":504,"y":878,"width":330,"height":12}},{"id":"94e21336-7999-4e92-abdf-d5862e602199","block_type":"box","text":"II-100","page_number":159,"box":{"x":479,"y":909,"width":41,"height":9}},{"id":"d46fd59e-3fa9-40c7-99ef-93fb2f18fed8","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":159,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"622cd741-11a9-4baa-b757-a72098972b94","block_type":"box","text":"competition may also cause long-term contracts, whic","page_number":160,"box":{"x":116,"y":87,"width":391,"height":12}},{"id":"64b80d8b-10f7-49d2-afe8-69641c32e274","block_type":"box","text":"h electric utilities previously entered into to buy","page_number":160,"box":{"x":508,"y":87,"width":343,"height":12}},{"id":"81b7bd38-16f6-4656-a62f-78e1cbc9da35","block_type":"box","text":"power, to become “stranded assets” which have no economic value. Any loss associated with such","page_number":160,"box":{"x":117,"y":102,"width":723,"height":13}},{"id":"d1530d09-d75e-49e4-98e7-ee1ea188091c","block_type":"box","text":"contracts must be absorbed by ratepayers and investors.","page_number":160,"box":{"x":116,"y":118,"width":413,"height":12}},{"id":"e23081d0-dd57-4b11-bcdc-491ab05e9846","block_type":"box","text":"In addition, some electric utilities have acquired","page_number":160,"box":{"x":530,"y":118,"width":354,"height":12}},{"id":"8cc178e9-3833-4db7-aef9-10583bb9ebe6","block_type":"box","text":"electric utilities overseas to diversify, enhance ear","page_number":160,"box":{"x":116,"y":134,"width":362,"height":12}},{"id":"38aac9e6-95b4-43b6-a526-a342b0b5ea44","block_type":"box","text":"nings and gain experience in operating in a deregulated","page_number":160,"box":{"x":478,"y":134,"width":409,"height":12}},{"id":"eacb0d96-5251-4059-afa5-465b417a42a6","block_type":"box","text":"environment. In some instances, such acquisitions","page_number":160,"box":{"x":116,"y":149,"width":366,"height":12}},{"id":"c822ec56-5927-4ad8-8da6-8e66f936b378","block_type":"box","text":"have involved significant borrowings, which have","page_number":160,"box":{"x":483,"y":149,"width":364,"height":12}},{"id":"09ce7e29-c3cb-425c-8c24-c71abf8da528","block_type":"box","text":"burdened the acquirer’s balance sheet. There is no assu","page_number":160,"box":{"x":117,"y":165,"width":408,"height":11}},{"id":"d84a3719-c5de-48f6-ab64-f602c4b4ec38","block_type":"box","text":"rance that current deregulation proposals will be","page_number":160,"box":{"x":528,"y":165,"width":353,"height":12}},{"id":"aae5d334-197d-4756-ba58-66d3ebdedfce","block_type":"box","text":"adopted. However, deregulation in any form could signi","page_number":160,"box":{"x":116,"y":180,"width":400,"height":12}},{"id":"62bf60d3-7dab-4b1e-add8-ff63dd9c9f4e","block_type":"box","text":"ficantly impact the electric utilities industry.","page_number":160,"box":{"x":517,"y":180,"width":314,"height":12}},{"id":"87005a91-71da-4aa4-a61f-2e7dc8d43da6","block_type":"box","text":"Telecommunications.","page_number":160,"box":{"x":118,"y":211,"width":155,"height":10}},{"id":"1e378fb5-0827-4644-bce7-6e07780fdd12","block_type":"box","text":"The telecommunications industry today includes both traditional telephone","page_number":160,"box":{"x":275,"y":211,"width":561,"height":12}},{"id":"67c52a3a-945a-4fdb-8042-c532a7a1b58b","block_type":"box","text":"companies, with a history of broad market coverage and highly regulated businesses, and cable","page_number":160,"box":{"x":116,"y":227,"width":717,"height":12}},{"id":"ebbdd3af-9a3a-4808-9744-67665eea359a","block_type":"box","text":"companies, which began as small, lightly regulated businesses focused on limited markets. Today","page_number":160,"box":{"x":116,"y":242,"width":733,"height":12}},{"id":"0f98788c-07e9-4082-85a9-43d5f732a4d9","block_type":"box","text":"these two historically different businesses are converging in an industry that is trending toward larger,","page_number":160,"box":{"x":116,"y":258,"width":758,"height":12}},{"id":"aa8fea8a-46ee-471b-8846-e42d8620547d","block_type":"box","text":"competitive national and international markets with an emphasis on deregulation. Companies that","page_number":160,"box":{"x":116,"y":273,"width":729,"height":12}},{"id":"202c5a7a-3647-4fa1-b2a8-57e86a6df011","block_type":"box","text":"distribute telephone services and provide access to the telephone networks still comprise the greatest","page_number":160,"box":{"x":116,"y":289,"width":760,"height":12}},{"id":"1c0f9dc9-84f5-4c5c-a2ce-a6f701f9bae3","block_type":"box","text":"portion of this segment, but non-regulated activities such as wireless telephone services, paging, data","page_number":160,"box":{"x":117,"y":304,"width":759,"height":12}},{"id":"1a6f89b1-f43a-4f5c-be59-c530e7bde3c3","block_type":"box","text":"transmission and processing, equipment retailing, computer software and hardware and internet","page_number":160,"box":{"x":116,"y":320,"width":718,"height":12}},{"id":"e0c0b931-2f81-43fe-99a4-aeda116cbd56","block_type":"box","text":"services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":160,"box":{"x":116,"y":335,"width":759,"height":12}},{"id":"b0846311-de5c-4ebb-a270-0c29f7a14e97","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies.","page_number":160,"box":{"x":116,"y":351,"width":752,"height":12}},{"id":"e320f90d-c58f-4c16-a29b-4222b3c66319","block_type":"box","text":"The presence of unregulated companies in this industry and the entry of traditional telephone","page_number":160,"box":{"x":116,"y":366,"width":696,"height":12}},{"id":"61703242-6b6f-4027-bddb-869073d273b7","block_type":"box","text":"companies into unregulated or less regulated businesses provide significant investment opportunities","page_number":160,"box":{"x":116,"y":382,"width":755,"height":12}},{"id":"de78a5f4-07bf-435d-943f-80ad1474fdfe","block_type":"box","text":"with companies that may increase their earnings at faster rates than had been allowed in traditional","page_number":160,"box":{"x":116,"y":397,"width":742,"height":12}},{"id":"924b39c7-8c57-4bee-8d31-7110a3a0810e","block_type":"box","text":"regulated businesses. Still, increasing competition, technological innovations and other structural","page_number":160,"box":{"x":117,"y":413,"width":722,"height":12}},{"id":"c6cbd37b-df95-4bfe-8553-d25c89310b8e","block_type":"box","text":"changes could adversely affect the profitability of such utilities and the growth rate of their dividends.","page_number":160,"box":{"x":116,"y":428,"width":750,"height":12}},{"id":"ac2bd02a-d1a3-422c-ac4d-500166de7488","block_type":"box","text":"Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":160,"box":{"x":117,"y":444,"width":725,"height":12}},{"id":"12c76d8b-f3dc-4be9-88f1-774efadab693","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility","page_number":160,"box":{"x":116,"y":459,"width":718,"height":12}},{"id":"2c661cc2-8da2-4e85-a308-f9736488a228","block_type":"box","text":"services to both residential, corporate and governmental customers.","page_number":160,"box":{"x":116,"y":475,"width":511,"height":12}},{"id":"948453b8-535a-4d3d-97bd-382d8a5ccf3b","block_type":"box","text":"Gas.","page_number":160,"box":{"x":117,"y":506,"width":33,"height":9}},{"id":"c13be535-01c9-42aa-99a7-696dc22d87c5","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes.","page_number":160,"box":{"x":151,"y":506,"width":733,"height":12}},{"id":"7e2c1aa3-1ed9-4175-8dbb-ec40542dfe25","block_type":"box","text":"In the United States, interstate transmission companies are regulated by the Federal Energy","page_number":160,"box":{"x":117,"y":521,"width":689,"height":12}},{"id":"1ffaacbd-bfca-4fa6-9370-3b23e04fc251","block_type":"box","text":"Regulatory Commission, which is reducing its regulation of the industry. Many companies have","page_number":160,"box":{"x":117,"y":537,"width":709,"height":12}},{"id":"f06a1c9c-4663-44d1-8ae5-d317e9f7f257","block_type":"box","text":"diversified into oil and gas exploration and development, making returns more sensitive to energy","page_number":160,"box":{"x":116,"y":552,"width":728,"height":12}},{"id":"65cad14d-c7f0-4706-b8f9-ee32e7050030","block_type":"box","text":"prices. In the recent decade, gas utility companies have been adversely affected by disruptions in the","page_number":160,"box":{"x":117,"y":568,"width":756,"height":12}},{"id":"c20fa4f8-c3e8-466f-b5d7-1028ddf66c55","block_type":"box","text":"oil industry and have also been affected by increased concentration and competition. In the opinion of","page_number":160,"box":{"x":116,"y":583,"width":759,"height":12}},{"id":"e26d3533-c491-410c-82c4-c4d7f550d44d","block_type":"box","text":"the Manager, however, environmental considerations could improve the gas industry outlook in the","page_number":160,"box":{"x":116,"y":599,"width":738,"height":12}},{"id":"d5eaf779-059b-44c7-9f6b-a08ca8b4a15b","block_type":"box","text":"future. For example, natural gas is the cleanest of the hydrocarbon fuels, and this may result in","page_number":160,"box":{"x":116,"y":614,"width":709,"height":12}},{"id":"365ef9a2-08ce-48ab-a826-c74b6daee27d","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for","page_number":160,"box":{"x":117,"y":630,"width":702,"height":12}},{"id":"1fb162f7-71ba-4e98-8df4-18e8ae940a3b","block_type":"box","text":"electricity generation. However, technological or regulatory changes within the industry may delay or","page_number":160,"box":{"x":116,"y":645,"width":750,"height":12}},{"id":"d7153f7f-6edc-4421-a328-1fb2d34e0dab","block_type":"box","text":"prevent this result.","page_number":160,"box":{"x":117,"y":661,"width":135,"height":12}},{"id":"73aa0179-8aad-430c-9223-7b209f63baa2","block_type":"box","text":"Water.","page_number":160,"box":{"x":118,"y":692,"width":46,"height":9}},{"id":"0c6b71d3-bb01-47cb-ab73-3eca1bfde13a","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United","page_number":160,"box":{"x":170,"y":692,"width":695,"height":12}},{"id":"3d61fcbf-761e-4ab4-9de9-30794bdda199","block_type":"box","text":"States and around the world the industry is highly fragmented because most of the supplies are owned","page_number":160,"box":{"x":116,"y":707,"width":762,"height":12}},{"id":"3532d75e-05ef-4282-809c-0d626b1c1f1e","block_type":"box","text":"by local authorities. Companies in this industry are generally mature and are experiencing little or no","page_number":160,"box":{"x":117,"y":723,"width":743,"height":12}},{"id":"ce7ffc5a-446f-4635-892e-0d2f24fefa63","block_type":"box","text":"per capita volume growth. In the opinion of the Manager, there may be opportunities for certain","page_number":160,"box":{"x":117,"y":738,"width":702,"height":12}},{"id":"c305c631-ee55-4137-94b2-7271e6d64b97","block_type":"box","text":"companies to acquire other water utility companies and for foreign acquisition of domestic companies.","page_number":160,"box":{"x":116,"y":754,"width":755,"height":12}},{"id":"dcb17167-1c96-40b1-9ffc-cb1a7a44ae6a","block_type":"box","text":"The Manager believes that favorable investment opportunities may result from consolidation of this","page_number":160,"box":{"x":116,"y":769,"width":733,"height":12}},{"id":"0e550060-ddb3-429b-9727-d8874f17a50a","block_type":"box","text":"segment. As with other utilities, however, increased regulation, increased costs and potential","page_number":160,"box":{"x":116,"y":785,"width":687,"height":12}},{"id":"8a948e63-d266-49cd-8a3a-47047f8da035","block_type":"box","text":"disruptions in supply may adversely affect investments in water supply utilities.","page_number":160,"box":{"x":116,"y":800,"width":582,"height":12}},{"id":"795e667f-4ec3-44d5-96ad-06c752b05400","block_type":"box","text":"Utility Industries Generally.","page_number":160,"box":{"x":117,"y":831,"width":197,"height":12}},{"id":"d1cb04ab-4bc9-46e9-8a88-4ed59957bba4","block_type":"box","text":"There can be no assurance that the positive developments noted above,","page_number":160,"box":{"x":316,"y":831,"width":548,"height":12}},{"id":"bc910514-80d4-4f2a-94c9-cab30a71b6fa","block_type":"box","text":"including those relating to privatization and changing regulation, will occur or that risk factors other than","page_number":160,"box":{"x":117,"y":847,"width":771,"height":12}},{"id":"8a4e323b-9230-49de-86c6-00674879f520","block_type":"box","text":"those noted above will not develop in the future.","page_number":160,"box":{"x":116,"y":862,"width":361,"height":12}},{"id":"8abc33cd-432b-4b50-973e-b2c41c34e2c4","block_type":"box","text":"II-101","page_number":160,"box":{"x":480,"y":909,"width":38,"height":9}},{"id":"71e9870a-e2cc-4bab-b6a5-0dbbb0daeb19","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":160,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"77ef685f-332f-41ef-89ee-6498235d12fb","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":161,"box":{"x":118,"y":87,"width":643,"height":12}},{"id":"6d684477-ae4c-4c2e-b553-479d278614a3","block_type":"box","text":"A Fund may","page_number":161,"box":{"x":762,"y":87,"width":100,"height":12}},{"id":"72714c0a-9bce-432d-af9e-fdc2efc13f2a","block_type":"box","text":"purchase or sell securities that it is entitled to receive on a when-issued basis. A Fund may also","page_number":161,"box":{"x":117,"y":103,"width":713,"height":12}},{"id":"fc43ee4d-1d14-4865-9f28-ab44889abcd3","block_type":"box","text":"purchase or sell securities on a delayed delivery basis or through a forward commitment (including on","page_number":161,"box":{"x":117,"y":118,"width":758,"height":12}},{"id":"56a72496-b35a-4b7b-8c7d-224f60388a36","block_type":"box","text":"a TBA (to be announced) basis). These transactions involve the purchase or sale of securities by a","page_number":161,"box":{"x":116,"y":134,"width":739,"height":12}},{"id":"6d840b27-0573-47bc-a38d-3f620988db9a","block_type":"box","text":"Fund at an established price with payment and delivery taking place in the future. The Fund enters into","page_number":161,"box":{"x":117,"y":149,"width":767,"height":12}},{"id":"70856ec4-d00b-478f-9200-74df964670fb","block_type":"box","text":"these transactions to obtain what is considered an advantageous price to the Fund at the time of","page_number":161,"box":{"x":116,"y":165,"width":721,"height":12}},{"id":"183a7ac6-5f6f-4b21-a8eb-bde4fb57d0d1","block_type":"box","text":"entering into the transaction.","page_number":161,"box":{"x":116,"y":180,"width":217,"height":12}},{"id":"5287c855-8b28-4320-b049-7efbd01f6737","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the","page_number":161,"box":{"x":117,"y":211,"width":731,"height":12}},{"id":"f8f8bffa-671c-4060-b626-e906165f2650","block_type":"box","text":"Federal Reserve Bank of New York, a Fund or its counterparty generally will be required to post","page_number":161,"box":{"x":117,"y":227,"width":714,"height":12}},{"id":"6ba9992a-eb67-42f1-a8f9-9d4d207a648f","block_type":"box","text":"collateral when entering into certain forward-settling transactions, including without limitation TBA","page_number":161,"box":{"x":116,"y":242,"width":726,"height":12}},{"id":"29a74b46-b4af-4118-ab0c-8c069b25b77e","block_type":"box","text":"transactions. FINRA rules have also been implemented that include mandatory margin requirements","page_number":161,"box":{"x":116,"y":258,"width":750,"height":12}},{"id":"22fcc9c1-62ee-4a12-b303-5410b36aa7e9","block_type":"box","text":"for the TBA market with limited exceptions. The collateralization of TBA trades is intended to mitigate","page_number":161,"box":{"x":116,"y":273,"width":754,"height":12}},{"id":"aebc3204-706b-4a9c-8e6a-3c6dc5584b52","block_type":"box","text":"counterparty credit risk between trade and settlement, but could increase the cost of TBA transactions","page_number":161,"box":{"x":116,"y":289,"width":763,"height":12}},{"id":"95346ec1-8ba1-4a46-b129-2f3fe2927582","block_type":"box","text":"and impose added operational complexity.","page_number":161,"box":{"x":116,"y":304,"width":320,"height":12}},{"id":"7af60206-3883-469e-a7c6-c249d6613924","block_type":"box","text":"There can be no assurance that a security purchased on a when-issued basis will be issued or that a","page_number":161,"box":{"x":116,"y":335,"width":754,"height":12}},{"id":"8939ada3-a7e3-4927-8d47-b43002921ce6","block_type":"box","text":"security purchased or sold on a delayed delivery basis or through a forward commitment will be","page_number":161,"box":{"x":116,"y":351,"width":713,"height":12}},{"id":"eb556ad9-8345-4e05-9022-613312be1eb4","block_type":"box","text":"delivered. Also, the value of securities in these transactions on the delivery date may be more or less","page_number":161,"box":{"x":116,"y":366,"width":755,"height":12}},{"id":"87cd4eb1-e604-43cf-a24e-efa86e6cdff0","block_type":"box","text":"than the price paid by the Fund to purchase the securities. The Fund will lose money if the value of the","page_number":161,"box":{"x":116,"y":382,"width":766,"height":12}},{"id":"bd8ba24c-3965-4dde-9e82-0553d5121ccb","block_type":"box","text":"security in such a transaction declines below the purchase price and will not benefit if the value of the","page_number":161,"box":{"x":116,"y":397,"width":757,"height":12}},{"id":"27e59f18-0422-4197-8f76-a856f5e27230","block_type":"box","text":"security appreciates above the sale price during the commitment period.","page_number":161,"box":{"x":116,"y":413,"width":542,"height":12}},{"id":"65ce469d-3c48-44b2-8b83-d301173027f7","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a","page_number":161,"box":{"x":117,"y":444,"width":715,"height":12}},{"id":"6c3b2d84-001a-41ad-8efd-cccb930cbb8f","block_type":"box","text":"commitment after it has been entered into, and may sell securities it has committed to purchase before","page_number":161,"box":{"x":116,"y":459,"width":767,"height":12}},{"id":"5c0eb5f7-64ce-434e-a1d0-09fbe0930921","block_type":"box","text":"those securities are delivered to the Fund on the settlement date. In these cases the Fund may realize","page_number":161,"box":{"x":116,"y":475,"width":764,"height":12}},{"id":"fa85a1fc-b456-4a0f-9363-2f2b8b12d1f3","block_type":"box","text":"a taxable capital gain or loss.","page_number":161,"box":{"x":116,"y":490,"width":221,"height":12}},{"id":"a1006481-5b3c-48f6-b711-e619be919501","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other","page_number":161,"box":{"x":116,"y":521,"width":763,"height":12}},{"id":"41d21fad-f551-4eb2-b62b-a6f0305303e3","block_type":"box","text":"party to consummate the trade. Failure of such party to do so may result in the Fund’s incurring a loss","page_number":161,"box":{"x":117,"y":537,"width":760,"height":12}},{"id":"2cbeaf98-6209-4287-8fae-3b1820df63bc","block_type":"box","text":"or missing an opportunity to obtain a price considered to be advantageous.","page_number":161,"box":{"x":116,"y":552,"width":561,"height":12}},{"id":"f0b82cc3-d2db-46a0-ac9c-239a0348a346","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any","page_number":161,"box":{"x":116,"y":583,"width":688,"height":12}},{"id":"92adcf65-e5f9-4c02-8a42-ac625bc92b79","block_type":"box","text":"subsequent fluctuations in their market value, is taken into account when determining the market value","page_number":161,"box":{"x":116,"y":599,"width":767,"height":12}},{"id":"15bed9dc-d05f-4991-bd80-90f12b5ab5e4","block_type":"box","text":"of a Fund starting on the day the Fund agrees to purchase the securities. The Fund does not earn","page_number":161,"box":{"x":116,"y":614,"width":732,"height":12}},{"id":"dc4f09ba-54f4-451f-bc33-7cc2252de45d","block_type":"box","text":"interest on the securities it has committed to purchase until they are paid for and delivered on the","page_number":161,"box":{"x":117,"y":630,"width":725,"height":12}},{"id":"5c3e3071-85f3-4e0f-9329-513bd7201410","block_type":"box","text":"settlement date.","page_number":161,"box":{"x":116,"y":645,"width":124,"height":10}},{"id":"924d28e4-b277-4da2-90f4-1ea2be6c5942","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward","page_number":161,"box":{"x":117,"y":676,"width":740,"height":12}},{"id":"8d90ea2d-24ba-4c92-84d9-a1529eeed473","block_type":"box","text":"settling securities (e.g., firm and standby commitments, including TBA commitments, and dollar rolls)","page_number":161,"box":{"x":116,"y":692,"width":747,"height":12}},{"id":"8918ef88-b4c7-426c-b370-ca6e9bf8caa5","block_type":"box","text":"and non-standard settlement cycle securities notwithstanding the limitation on the issuance of senior","page_number":161,"box":{"x":116,"y":707,"width":746,"height":12}},{"id":"11f77051-238a-4d6c-9d8c-e88cb065c606","block_type":"box","text":"securities in Section 18 of the Investment Company Act, provided that the Fund intends to physically","page_number":161,"box":{"x":116,"y":723,"width":745,"height":12}},{"id":"f24b6d59-a3ba-48d5-a945-c64830387f33","block_type":"box","text":"settle the transaction and the transaction will settle within 35 days of its trade date (the “Delayed","page_number":161,"box":{"x":116,"y":738,"width":719,"height":12}},{"id":"ba1cc560-0c3e-4014-9c89-b8f6bd69f461","block_type":"box","text":"Settlement Securities Provision”). If a when-issued, forward-settling or non-standard settlement cycle","page_number":161,"box":{"x":116,"y":754,"width":749,"height":12}},{"id":"e1251dfe-8927-4f5e-ac2c-6704d8b4ee35","block_type":"box","text":"security does not satisfy the Delayed-Settlement Securities Provision, then it is treated as a Derivatives","page_number":161,"box":{"x":116,"y":769,"width":765,"height":12}},{"id":"8c420941-f531-47ad-ae45-11363c67c58e","block_type":"box","text":"Transaction under Rule 18f-4. See “—Derivatives—Regulation of Derivatives—Rule 18f-4 under the","page_number":161,"box":{"x":116,"y":785,"width":741,"height":12}},{"id":"ab16beb1-d51a-453c-95c8-381a3378225e","block_type":"box","text":"Investment Company Act” above.","page_number":161,"box":{"x":117,"y":800,"width":246,"height":12}},{"id":"722c8ca5-1434-42dc-a2a2-ac541c986b60","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and","page_number":161,"box":{"x":117,"y":831,"width":761,"height":12}},{"id":"28aa4e0c-00e8-4268-9e40-0a3c86e12d8c","block_type":"box","text":"certain of their affiliates to include in certain financial contracts, including many agreements with","page_number":161,"box":{"x":116,"y":847,"width":716,"height":12}},{"id":"b2e8d694-fbd0-4bfb-8ea9-5abfd1ccc585","block_type":"box","text":"respect to when-issued, TBA and forward commitment transactions, terms that delay or restrict the","page_number":161,"box":{"x":117,"y":862,"width":736,"height":12}},{"id":"466d29fe-0336-4f42-bf51-5ac252801f21","block_type":"box","text":"rights of counterparties, such as a Fund, to terminate such agreements, foreclose upon collateral,","page_number":161,"box":{"x":117,"y":878,"width":728,"height":12}},{"id":"7745d51d-5d91-4842-8d12-6750f032add7","block_type":"box","text":"II-102","page_number":161,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"763e7bef-557b-420a-97a3-3e8e91f07fbd","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":161,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2e026ac7-7b18-4518-b0c9-059eec402987","block_type":"box","text":"exercise other default rights or restrict transfers of credit support in the event that the counterparty and/","page_number":162,"box":{"x":116,"y":87,"width":766,"height":12}},{"id":"48ab7294-2155-4c22-b2fe-ff3ee9d3df32","block_type":"box","text":"or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that","page_number":162,"box":{"x":116,"y":102,"width":744,"height":13}},{"id":"8f6e6dd2-ec6c-4e75-a2f6-93dc0dfa3970","block_type":"box","text":"these requirements, as well as potential additional government regulation and other developments in","page_number":162,"box":{"x":116,"y":118,"width":752,"height":12}},{"id":"dd35d795-a7f1-49d5-ada3-62b1bac3a3bb","block_type":"box","text":"the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":162,"box":{"x":116,"y":134,"width":735,"height":12}},{"id":"6ec468df-5278-4248-8021-a5bba55de508","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":162,"box":{"x":116,"y":149,"width":600,"height":12}},{"id":"4f1a8695-6042-4e76-95db-d92fef075179","block_type":"box","text":"Yields and Ratings.","page_number":162,"box":{"x":118,"y":180,"width":152,"height":12}},{"id":"d770a7a8-4dd7-4997-ad39-bbd8e5ad7e4e","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including","page_number":162,"box":{"x":271,"y":180,"width":604,"height":12}},{"id":"ab3a3638-c765-4f11-848b-5768d4dd92d8","block_type":"box","text":"general market conditions, conditions in the particular market for the obligation, the financial condition","page_number":162,"box":{"x":116,"y":196,"width":759,"height":12}},{"id":"97ac93b3-f2b4-4a8f-870e-cfcba34f652d","block_type":"box","text":"of the issuer, the size of the offering, the maturity of the obligation and the ratings of the issue. The","page_number":162,"box":{"x":116,"y":211,"width":738,"height":12}},{"id":"a5e70328-154d-45bf-ad1d-2ce44259ef70","block_type":"box","text":"ratings of Moody’s, Fitch and S&P represent their respective opinions as to the quality of the","page_number":162,"box":{"x":117,"y":227,"width":688,"height":12}},{"id":"5e0a7cd5-6d1b-4502-af76-cc122ef9f3d7","block_type":"box","text":"obligations they undertake to rate. Ratings, however, are general and are not absolute standards of","page_number":162,"box":{"x":116,"y":242,"width":743,"height":12}},{"id":"29c9defb-6c3c-4154-8536-aa5f175e6586","block_type":"box","text":"quality. Consequently, obligations with the same rating, maturity and interest rate may have different","page_number":162,"box":{"x":116,"y":258,"width":749,"height":12}},{"id":"09d7c2cf-848e-4678-8b47-98a54ca28ce5","block_type":"box","text":"market prices. Subsequent to its purchase by a Fund, a rated security may cease to be rated. A Fund’s","page_number":162,"box":{"x":117,"y":273,"width":769,"height":12}},{"id":"6b5ed6a6-9dd1-4e11-807c-79ede772f257","block_type":"box","text":"Manager or sub-adviser will consider such an event in determining whether the Fund should continue","page_number":162,"box":{"x":117,"y":289,"width":755,"height":12}},{"id":"435823e2-f5ff-4fb6-9e33-38c8da630a46","block_type":"box","text":"to hold the security.","page_number":162,"box":{"x":116,"y":304,"width":150,"height":12}},{"id":"632e4259-b36f-4f5e-be9f-a8b52b14246c","block_type":"box","text":"Zero Coupon Securities.","page_number":162,"box":{"x":116,"y":335,"width":193,"height":12}},{"id":"53a52653-221d-49c9-95ba-7e3c1f62b84d","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value","page_number":162,"box":{"x":310,"y":335,"width":575,"height":12}},{"id":"2a0c12e0-6ccd-4a36-bf09-c9137a30f28d","block_type":"box","text":"and do not pay interest during the life of the security. The discount approximates the total amount of","page_number":162,"box":{"x":116,"y":351,"width":747,"height":12}},{"id":"b6a7d327-2b36-4a69-9e41-7917bb025d73","block_type":"box","text":"interest the security will accrue and compound over the period until maturity at a rate of interest","page_number":162,"box":{"x":117,"y":366,"width":711,"height":12}},{"id":"de6fad7b-2449-4d67-bca4-b678006517ba","block_type":"box","text":"reflecting the market rate of the security at the time of issuance. Upon maturity, the holder of a zero","page_number":162,"box":{"x":117,"y":382,"width":741,"height":12}},{"id":"15aacd4e-3810-4d19-9db8-62ce38eb3a79","block_type":"box","text":"coupon security is entitled to receive the par value of the security.","page_number":162,"box":{"x":116,"y":397,"width":492,"height":12}},{"id":"94e5422a-e434-4354-ad97-a00714b068bb","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to","page_number":162,"box":{"x":116,"y":428,"width":740,"height":12}},{"id":"c290fb73-35dc-4754-be0b-bb7b8ee5c093","block_type":"box","text":"have received income (“phantom income”) annually, notwithstanding that cash may not be received","page_number":162,"box":{"x":117,"y":444,"width":742,"height":12}},{"id":"2bf0ffbf-b8ac-4675-8b33-92f7f9fa7a86","block_type":"box","text":"currently. The effect of owning instruments that do not make current interest payments is that a fixed","page_number":162,"box":{"x":116,"y":459,"width":751,"height":12}},{"id":"d7883f1a-d689-4419-8be6-6106ccb991c4","block_type":"box","text":"yield is earned not only on the original investment but also, in effect, on all discount accretion during","page_number":162,"box":{"x":116,"y":475,"width":746,"height":12}},{"id":"9cbf42ed-23ca-439b-bf33-dbc886ee2e13","block_type":"box","text":"the life of the obligations. This implicit reinvestment of earnings at a fixed rate eliminates the risk of","page_number":162,"box":{"x":116,"y":490,"width":737,"height":12}},{"id":"0b5224c4-ee10-4ff6-b041-77bf30f00d01","block_type":"box","text":"being unable to invest distributions at a rate as high as the implicit yield on the zero coupon bond, but","page_number":162,"box":{"x":117,"y":506,"width":757,"height":12}},{"id":"82ea0cea-d0a4-4ea4-bc37-51a557ecef28","block_type":"box","text":"at the same time eliminates the holder’s ability to reinvest at higher rates in the future. For this reason,","page_number":162,"box":{"x":116,"y":521,"width":764,"height":12}},{"id":"0891ee4f-998d-4e72-8486-ab36ace15426","block_type":"box","text":"some of these securities may be subject to substantially greater price fluctuations during periods of","page_number":162,"box":{"x":116,"y":537,"width":739,"height":12}},{"id":"d8a5fbd8-1ed0-4dcd-9066-d3936baa1936","block_type":"box","text":"changing market interest rates than are comparable securities that pay interest currently. Longer term","page_number":162,"box":{"x":116,"y":552,"width":760,"height":12}},{"id":"35024bce-23e8-435e-9d7c-6d721bfa4d11","block_type":"box","text":"zero coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These","page_number":162,"box":{"x":116,"y":568,"width":768,"height":12}},{"id":"4728a491-71c5-4255-8ebe-b5bc1d292622","block_type":"box","text":"investments benefit the issuer by mitigating its need for cash to meet debt service, but also require a","page_number":162,"box":{"x":117,"y":583,"width":749,"height":12}},{"id":"cc950cf1-4b47-4658-a7ce-e50c61b2bf70","block_type":"box","text":"higher rate of return to attract investors who are willing to defer receipt of cash.","page_number":162,"box":{"x":117,"y":599,"width":589,"height":12}},{"id":"83111359-16aa-450a-bda9-2d6cb384b582","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting","page_number":162,"box":{"x":116,"y":630,"width":739,"height":12}},{"id":"a5968796-dbf3-48a5-a5bd-e132d8b94589","block_type":"box","text":"purposes prior to the receipt of cash payments. Zero coupon securities may be subject to greater","page_number":162,"box":{"x":117,"y":645,"width":724,"height":12}},{"id":"bbe41e25-a245-4b89-abcc-80eda395ec20","block_type":"box","text":"fluctuation in value and less liquidity in the event of adverse market conditions than comparably rated","page_number":162,"box":{"x":116,"y":661,"width":750,"height":12}},{"id":"8001a987-944b-4cd6-8017-83bec4b194f4","block_type":"box","text":"securities that pay cash interest at regular intervals.","page_number":162,"box":{"x":116,"y":676,"width":382,"height":12}},{"id":"abe0523c-3948-4fda-b372-6cc8f72de5a1","block_type":"box","text":"Further, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund","page_number":162,"box":{"x":117,"y":707,"width":759,"height":12}},{"id":"5ab7b62f-dea8-44f6-8161-74b355af6d34","block_type":"box","text":"is required to distribute income to its shareholders and, consequently, may have to dispose of other,","page_number":162,"box":{"x":117,"y":723,"width":740,"height":12}},{"id":"c212744d-d813-4ff4-9952-24fbda387f90","block_type":"box","text":"more liquid portfolio securities under disadvantageous circumstances or may have to leverage itself by","page_number":162,"box":{"x":117,"y":738,"width":760,"height":12}},{"id":"e0dc91b6-d059-4cd8-8450-56b6d1fe5c15","block_type":"box","text":"borrowing in order to generate the cash to satisfy these distributions. The required distributions may","page_number":162,"box":{"x":117,"y":754,"width":740,"height":12}},{"id":"d8c2dfc0-2225-429c-bdbd-d2e0230cc089","block_type":"box","text":"result in an increase in a Fund’s exposure to zero coupon securities.","page_number":162,"box":{"x":117,"y":769,"width":505,"height":12}},{"id":"cddbb7d2-4839-48e4-9c5a-ff200005562e","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero","page_number":162,"box":{"x":117,"y":800,"width":707,"height":12}},{"id":"c81e1033-40fe-4af1-8daa-ad7712e3770b","block_type":"box","text":"coupon securities. During a period of severe market conditions, the market for such securities may","page_number":162,"box":{"x":116,"y":816,"width":731,"height":12}},{"id":"bd5f4dd7-2ee9-4dd9-81d2-3f853fa2b57d","block_type":"box","text":"become even less liquid. In addition, as these securities do not pay cash interest, a Fund’s investment","page_number":162,"box":{"x":117,"y":831,"width":762,"height":12}},{"id":"854be3cb-8dc4-4645-aea2-038dd3978b4e","block_type":"box","text":"exposure to these securities and their risks, including credit risk, will increase during the time these","page_number":162,"box":{"x":116,"y":847,"width":739,"height":12}},{"id":"811d5c80-0133-48b5-af88-5fc49894858b","block_type":"box","text":"securities are held in the Fund’s portfolio.","page_number":162,"box":{"x":116,"y":862,"width":311,"height":12}},{"id":"158ad3fc-e6f3-4a85-a5ca-a06ba7dfd7d9","block_type":"box","text":"II-103","page_number":162,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"e23a9c84-0108-4294-88db-83ada64dc991","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":162,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"721a0a3f-d2ec-49e6-b99b-16c7d7c70660","block_type":"box","text":"Suitability. (All Funds)","page_number":163,"box":{"x":117,"y":87,"width":181,"height":12}},{"id":"68f6d865-a779-4989-a098-9bd0ced7f748","block_type":"box","text":"The economic benefit of an investment in any Fund depends upon many factors beyond the control of","page_number":163,"box":{"x":116,"y":111,"width":760,"height":12}},{"id":"15c46f72-9129-4b14-8540-e7fcdb89be3e","block_type":"box","text":"the Fund, the Manager and its affiliates. Each Fund should be considered a vehicle for diversification","page_number":163,"box":{"x":116,"y":126,"width":753,"height":12}},{"id":"a7dc4ce4-c15b-40d4-a8a9-c86642d7a2c3","block_type":"box","text":"and not as a balanced investment program. The suitability for any particular investor of a purchase of","page_number":163,"box":{"x":116,"y":142,"width":755,"height":12}},{"id":"72c6c479-ce6d-47b8-92d4-151f56a58d5d","block_type":"box","text":"shares in a Fund will depend upon, among other things, such investor’s investment objectives and","page_number":163,"box":{"x":116,"y":157,"width":733,"height":12}},{"id":"0b752079-fae9-4476-aae3-d1dfe71651d1","block_type":"box","text":"such investor’s ability to accept the risks associated with investing in securities, including the risk of","page_number":163,"box":{"x":116,"y":173,"width":741,"height":12}},{"id":"092bb1ab-e291-47dc-b79a-9b1c0efd010f","block_type":"box","text":"loss of principal.","page_number":163,"box":{"x":117,"y":188,"width":124,"height":12}},{"id":"8cbd52e4-58da-4558-9a7a-5d425dfe825e","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":163,"box":{"x":116,"y":220,"width":293,"height":12}},{"id":"85bc187b-d3dd-434a-94a7-4f2a6d4b7f04","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the","page_number":163,"box":{"x":116,"y":244,"width":712,"height":12}},{"id":"49a89e7c-5cdb-4ab4-9bfb-c5532b206f6c","block_type":"box","text":"specific fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to","page_number":163,"box":{"x":116,"y":259,"width":772,"height":13}},{"id":"de06dbf9-6be2-429d-b701-bcd826134a31","block_type":"box","text":"those investment restrictions, each Fund is also subject to the restrictions discussed below.","page_number":163,"box":{"x":116,"y":275,"width":683,"height":12}},{"id":"cfd76f93-bd2c-4ef1-b68f-9f774a083966","block_type":"box","text":"Each Fund’s investments will be limited in order to","page_number":163,"box":{"x":117,"y":307,"width":376,"height":9}},{"id":"39c4504a-5abf-4e34-97c7-8c6e0966e0e3","block_type":"box","text":"allow the Fund to qualify as a “regulated investment","page_number":163,"box":{"x":494,"y":307,"width":389,"height":12}},{"id":"c8a38f15-fde1-4ef1-a6c0-fa935f774aa8","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify,","page_number":163,"box":{"x":116,"y":322,"width":721,"height":13}},{"id":"24846d8f-3c94-4fd4-8241-10ba9a93fc9e","block_type":"box","text":"among other requirements, each Fund will limit its investments so that, at the close of each quarter of","page_number":163,"box":{"x":116,"y":338,"width":757,"height":12}},{"id":"629afaa3-f3b8-470f-a793-f8f33e347c52","block_type":"box","text":"the taxable year, (i) at least 50% of the market value of each Fund’s assets is represented by cash,","page_number":163,"box":{"x":116,"y":353,"width":741,"height":13}},{"id":"ed062232-4145-40c2-8030-9234046419d0","block_type":"box","text":"securities of other regulated investment companies, U.S. Government Securities and other securities,","page_number":163,"box":{"x":116,"y":369,"width":759,"height":12}},{"id":"b9f99cb1-572c-432e-88c1-4a3e1373aded","block_type":"box","text":"with such other securities limited, in respect of any one issuer, to an amount not greater in value than","page_number":163,"box":{"x":116,"y":384,"width":756,"height":13}},{"id":"0e9bc1fa-d3a2-4ba8-ad7d-57290e25e9cc","block_type":"box","text":"5% of the Fund’s assets and not greater than 10% of the outstanding voting securities of such issuer","page_number":163,"box":{"x":116,"y":400,"width":751,"height":12}},{"id":"7570e238-b186-4482-a58a-e1bcc12b64a4","block_type":"box","text":"and (ii) not more than 25% of the value of its assets is invested in the securities (other than U.S.","page_number":163,"box":{"x":116,"y":415,"width":718,"height":13}},{"id":"35df209a-9ee8-46a4-84e5-ad91b5159df4","block_type":"box","text":"Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":163,"box":{"x":117,"y":431,"width":754,"height":12}},{"id":"d248923d-fbf5-44bd-89ea-e6cfc02e7e77","block_type":"box","text":"two or more issuers that the Fund controls and that are determined to be engaged in the same or","page_number":163,"box":{"x":116,"y":447,"width":726,"height":12}},{"id":"3f1d1688-17de-47fe-be8b-112785081e79","block_type":"box","text":"similar trades or businesses or related trades or businesses or in the securities of one or more qualified","page_number":163,"box":{"x":116,"y":462,"width":772,"height":12}},{"id":"de15bcce-5e3c-4b08-b5f2-842c78ba7d10","block_type":"box","text":"publicly traded partnerships (","page_number":163,"box":{"x":117,"y":477,"width":214,"height":13}},{"id":"9b001e34-f858-4f65-8202-8a6b0c7fc330","block_type":"box","text":"i.e.","page_number":163,"box":{"x":332,"y":478,"width":21,"height":9}},{"id":"df83f6cb-a5b1-47a8-9b2c-190050ec007b","block_type":"box","text":", partnerships that are traded on an established securities market or","page_number":163,"box":{"x":356,"y":478,"width":507,"height":11}},{"id":"e535b4ae-a581-4c95-92eb-475f6a23b22d","block_type":"box","text":"tradable on a secondary market, other than partnerships that derive 90% of their income from interest,","page_number":163,"box":{"x":116,"y":493,"width":764,"height":12}},{"id":"6d063424-fae6-4e58-bfef-028a24f12d26","block_type":"box","text":"dividends, capital gains and other traditionally permitted mutual fund income). For purposes of this","page_number":163,"box":{"x":116,"y":508,"width":734,"height":13}},{"id":"1f7e1cde-2ab3-49c4-a9c0-79dd9c571f08","block_type":"box","text":"restriction, the Municipal Funds generally will regard each state and each of its political subdivisions,","page_number":163,"box":{"x":117,"y":524,"width":749,"height":12}},{"id":"8840c60c-10a4-41e3-b5b9-a5031c60a98e","block_type":"box","text":"agencies or instrumentalities and each multi-state agency of which the state is a member as a","page_number":163,"box":{"x":116,"y":539,"width":703,"height":13}},{"id":"82b99a44-7f95-46aa-a2a6-11e752f4e0c5","block_type":"box","text":"separate issuer. Each public authority that issues securities on behalf of a private entity generally will","page_number":163,"box":{"x":116,"y":555,"width":754,"height":12}},{"id":"75db8573-3d51-4666-b148-b4fa0fe01d72","block_type":"box","text":"also be regarded as a separate issuer, except that if the security is backed only by the assets and","page_number":163,"box":{"x":116,"y":570,"width":731,"height":13}},{"id":"cb8df4dd-a163-4876-ae02-0da50c7aaa0f","block_type":"box","text":"revenues of a non-government entity, then the entity with the ultimate responsibility for the payment of","page_number":163,"box":{"x":117,"y":586,"width":762,"height":12}},{"id":"9e340c98-e56b-4a64-a69d-8981061c3dd3","block_type":"box","text":"interest and principal may be regarded as the sole issuer.","page_number":163,"box":{"x":117,"y":602,"width":431,"height":12}},{"id":"09238821-119e-47a6-bc7b-d63063358cd5","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10%","page_number":163,"box":{"x":117,"y":633,"width":759,"height":13}},{"id":"cbf701cc-236b-4c24-aeb4-6269f30a4493","block_type":"box","text":"and 25% diversification requirements of the Code discussed above and the securities of each foreign","page_number":163,"box":{"x":116,"y":649,"width":755,"height":12}},{"id":"4f09c228-a0f9-4df9-acf0-cd4de7057209","block_type":"box","text":"government issuer are considered to be obligations of a single issuer. These tax-related limitations","page_number":163,"box":{"x":116,"y":664,"width":732,"height":13}},{"id":"efb3483d-17d9-4cc1-a790-3f0e3b95b573","block_type":"box","text":"may be changed by the Directors of a Fund to the extent necessary to comply with changes to the U.S.","page_number":163,"box":{"x":117,"y":680,"width":763,"height":12}},{"id":"e3ffb215-3eef-4e50-bfaf-766e816e8ee2","block_type":"box","text":"federal tax requirements. A Fund that is “diversified” under the Investment Company Act must satisfy","page_number":163,"box":{"x":116,"y":695,"width":748,"height":13}},{"id":"fa5e089f-bc23-41ff-b91f-8c15b8c5c6bc","block_type":"box","text":"the foregoing 5% and 10% requirements with respect to 75% of its total assets.","page_number":163,"box":{"x":116,"y":711,"width":586,"height":12}},{"id":"ebb70af5-6efc-4333-a8aa-7dab1cdb12dc","block_type":"box","text":"M","page_number":163,"box":{"x":310,"y":760,"width":12,"height":9}},{"id":"ab784509-f532-4a0e-bc1e-95eda0ed11d0","block_type":"box","text":"ANAGEMENT","page_number":163,"box":{"x":323,"y":762,"width":87,"height":7}},{"id":"10553e42-8fb8-4275-98fd-814ecb0fb828","block_type":"box","text":"AND","page_number":163,"box":{"x":415,"y":762,"width":29,"height":7}},{"id":"6da787dd-182c-4ed7-8674-2ff0ac6bf0f9","block_type":"box","text":"O","page_number":163,"box":{"x":450,"y":759,"width":12,"height":10}},{"id":"4bfc15b3-ff11-4feb-881b-35c2ca1f72d4","block_type":"box","text":"THER","page_number":163,"box":{"x":463,"y":762,"width":37,"height":7}},{"id":"6d61efdd-019f-4010-94f7-072730ffc1ed","block_type":"box","text":"S","page_number":163,"box":{"x":505,"y":759,"width":10,"height":10}},{"id":"811ff434-cb4e-487a-8cc6-ea53ec5fb7e5","block_type":"box","text":"ERVICE","page_number":163,"box":{"x":517,"y":762,"width":49,"height":7}},{"id":"7710ab07-5baa-40f0-be96-433505485f2d","block_type":"box","text":"A","page_number":163,"box":{"x":571,"y":760,"width":12,"height":9}},{"id":"e549a677-db53-419e-a9e2-f2972417d25c","block_type":"box","text":"RRANGEMENTS","page_number":163,"box":{"x":584,"y":762,"width":106,"height":7}},{"id":"3ac3741f-614b-42d7-8fa8-8bd0364fa974","block_type":"box","text":"Directors and Officers","page_number":163,"box":{"x":117,"y":791,"width":175,"height":10}},{"id":"9cecd483-a531-4666-bcce-a43376dbe006","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and","page_number":163,"box":{"x":116,"y":815,"width":730,"height":12}},{"id":"f7ee9b28-af6b-44be-a071-e4b6c4e8c012","block_type":"box","text":"‘— Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’","page_number":163,"box":{"x":117,"y":831,"width":760,"height":12}},{"id":"b715a597-7b77-46b2-b3ad-b54d43b006a4","block_type":"box","text":"‘— Share Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Part I of each Fund’s SAI","page_number":163,"box":{"x":117,"y":846,"width":754,"height":12}},{"id":"f270c587-c153-4768-902a-b618af8b430e","block_type":"box","text":"for biographical and certain other information relating to the Directors and officers of your Fund,","page_number":163,"box":{"x":116,"y":862,"width":713,"height":12}},{"id":"cd83e09d-af64-4799-a491-b870dea6b5d7","block_type":"box","text":"including Directors’ compensation.","page_number":163,"box":{"x":117,"y":877,"width":260,"height":12}},{"id":"96d818ba-d439-4d6d-b7ce-ca75d107f7ab","block_type":"box","text":"II-104","page_number":163,"box":{"x":479,"y":909,"width":41,"height":9}},{"id":"3120bc39-de05-4b79-ad6e-7cc88917ee40","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":163,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"7bf6c694-be5e-4aa2-aee9-d7854721af55","block_type":"box","text":"Management Arrangements","page_number":164,"box":{"x":117,"y":87,"width":225,"height":12}},{"id":"ad18ffec-b7d9-431e-bb3d-ad71c5f44303","block_type":"box","text":"Management Services.","page_number":164,"box":{"x":116,"y":110,"width":170,"height":12}},{"id":"128664c2-2c8e-4015-9b2a-e1a37128e144","block_type":"box","text":"The Manager provides each Fund with investment advisory and management","page_number":164,"box":{"x":288,"y":110,"width":585,"height":12}},{"id":"a09279f2-606c-490f-b555-86c82a94cd6d","block_type":"box","text":"services. Subject to the oversight of the Board of Directors, the Manager is responsible for the actual","page_number":164,"box":{"x":116,"y":126,"width":752,"height":12}},{"id":"2dfabde3-7c8d-4274-b382-36efd10b91e1","block_type":"box","text":"management of a Fund’s portfolio and reviews the Fund’s holdings in light of its own research analysis","page_number":164,"box":{"x":117,"y":141,"width":764,"height":12}},{"id":"ae721ebc-e6a6-450b-8f83-54d5e7f463cd","block_type":"box","text":"and that from other relevant sources. The responsibility for making decisions to buy, sell or hold a","page_number":164,"box":{"x":116,"y":157,"width":729,"height":12}},{"id":"1800bc15-3193-4c43-a2c3-c43dffe009c3","block_type":"box","text":"particular security rests with the Manager. The Manager performs certain of the other administrative","page_number":164,"box":{"x":117,"y":172,"width":745,"height":12}},{"id":"3a30f20d-2f7f-4670-b159-0b51e1e3ba0f","block_type":"box","text":"services and provides all the office space, facilities, equipment and necessary personnel for","page_number":164,"box":{"x":116,"y":188,"width":685,"height":12}},{"id":"35e401c8-55ad-4b91-81c5-40749b311ac9","block_type":"box","text":"management of each Fund.","page_number":164,"box":{"x":117,"y":203,"width":209,"height":12}},{"id":"84b4f72e-67be-4a45-9518-cda334f8f577","block_type":"box","text":"Each Feeder Fund invests all or a portion of its assets in shares of a Master Portfolio. To the extent a","page_number":164,"box":{"x":117,"y":234,"width":755,"height":12}},{"id":"597b7a93-f338-4e6d-bb50-b3418af53671","block_type":"box","text":"Feeder Fund invests all of its assets in a Master Portfolio, it does not invest directly in portfolio","page_number":164,"box":{"x":117,"y":250,"width":702,"height":12}},{"id":"b2f760e8-4609-4699-a817-1cb97a8a2a06","block_type":"box","text":"securities and does not require management services. For such Feeder Funds, portfolio management","page_number":164,"box":{"x":116,"y":265,"width":760,"height":12}},{"id":"1b6cf58c-4ee6-4aad-935d-b7105ffd972d","block_type":"box","text":"occurs at the Master Portfolio level.","page_number":164,"box":{"x":116,"y":281,"width":267,"height":9}},{"id":"52925f87-fa0a-4c89-b7b9-ea65bd904b88","block_type":"box","text":"Management Fee.","page_number":164,"box":{"x":116,"y":312,"width":132,"height":12}},{"id":"0e86f13b-213f-4c34-8bf5-0bfb8b63ed53","block_type":"box","text":"Each Fund has entered into a Management A","page_number":164,"box":{"x":250,"y":312,"width":326,"height":12}},{"id":"45f1bc80-527b-4cf7-9448-67bfbdf9f62f","block_type":"box","text":"Agreement with the Manager pursuant to","page_number":164,"box":{"x":576,"y":312,"width":304,"height":12}},{"id":"7fec89e0-3ec3-465e-9017-a9ff8ecb1957","block_type":"box","text":"which the Manager receives for its services to","page_number":164,"box":{"x":116,"y":327,"width":337,"height":12}},{"id":"865241f1-b65a-4c4a-96a8-9e043162aff2","block_type":"box","text":"the Fund monthly compensation at an annual rate based","page_number":164,"box":{"x":453,"y":327,"width":417,"height":12}},{"id":"fb835aa6-40a1-4101-98fa-6ad30b502ec8","block_type":"box","text":"on the average daily net assets of the Fund. For info","page_number":164,"box":{"x":116,"y":343,"width":380,"height":12}},{"id":"303041de-3c5f-4679-a6cd-6259dcf699b9","block_type":"box","text":"rmation regarding the fees paid by your Fund to the","page_number":164,"box":{"x":497,"y":343,"width":378,"height":12}},{"id":"7a06c770-4ed7-4bc9-ac9a-9ddc03543ea3","block_type":"box","text":"Manager for the Fund’s last three fiscal years or","page_number":164,"box":{"x":117,"y":358,"width":352,"height":12}},{"id":"c9f46fb4-07a4-4028-afc0-cbad548d694d","block_type":"box","text":"other applicable periods, see “Management, Advisory","page_number":164,"box":{"x":469,"y":358,"width":393,"height":12}},{"id":"bb28ef39-d38f-4b32-b167-29a343594fd9","block_type":"box","text":"and Other Service Arrangements — Management A","page_number":164,"box":{"x":116,"y":374,"width":368,"height":12}},{"id":"bca21d6a-f87c-4f34-8f13-8bf55679fc75","block_type":"box","text":"Agreement” or “Management and Advisory","page_number":164,"box":{"x":484,"y":374,"width":316,"height":12}},{"id":"eb1da651-a522-4ffb-ba35-405b5fc5296d","block_type":"box","text":"Arrangements,” as applicable, in Part I of each Fund’s SAI.","page_number":164,"box":{"x":116,"y":389,"width":433,"height":12}},{"id":"f5f2af26-88c1-4f29-82d2-975462e37ca9","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to","page_number":164,"box":{"x":117,"y":420,"width":757,"height":12}},{"id":"01f8d1ec-089f-4080-be9a-5eb5428afbbe","block_type":"box","text":"provide management services and to pay all compensation of and furnish office space for officers and","page_number":164,"box":{"x":117,"y":436,"width":760,"height":12}},{"id":"5e1f6cc1-27e7-421a-85f6-20ef536274ed","block_type":"box","text":"employees of a Fund in connection with investment and economic research, trading and investment","page_number":164,"box":{"x":116,"y":451,"width":745,"height":12}},{"id":"9bdff24f-131e-4dd3-abc3-8facff67ef20","block_type":"box","text":"management of the Fund, as well as the fees of all Directors of the Fund who are interested persons of","page_number":164,"box":{"x":117,"y":467,"width":768,"height":12}},{"id":"b0068858-96bc-4814-955d-9be3e305dce3","block_type":"box","text":"the Fund. Each Fund pays all other expenses incurred in the operation of that Fund, including among","page_number":164,"box":{"x":116,"y":482,"width":756,"height":12}},{"id":"3fee397b-5079-4b12-93a2-ff097557a7f5","block_type":"box","text":"other things: taxes; expenses for legal and auditing services; costs of preparing, printing and mailing","page_number":164,"box":{"x":116,"y":498,"width":749,"height":12}},{"id":"75b3c667-6d02-4767-a3b3-2185dd8b15ba","block_type":"box","text":"proxies, shareholder reports, prospectuses and statements of additional information, except to the","page_number":164,"box":{"x":117,"y":513,"width":732,"height":12}},{"id":"ca626b12-c7dd-419e-ac73-8fe05b3fe19a","block_type":"box","text":"extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the custodian and","page_number":164,"box":{"x":116,"y":529,"width":760,"height":12}},{"id":"0312fd42-e11a-4e63-b490-9c69cd350924","block_type":"box","text":"sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":164,"box":{"x":116,"y":544,"width":766,"height":12}},{"id":"3ea1b6d9-39f1-40d6-9dae-9d68a66e42e3","block_type":"box","text":"of registering the shares under Federal, state or foreign laws; fees and expenses of Directors who are","page_number":164,"box":{"x":116,"y":560,"width":761,"height":12}},{"id":"2d5bd0f4-03b0-4f87-8af3-b4cc02e7dded","block_type":"box","text":"not interested persons of a Fund as defined in the Investment Company Act; accounting and pricing","page_number":164,"box":{"x":117,"y":575,"width":745,"height":12}},{"id":"a794eb18-20ae-4bfd-8f97-d0f89e34aada","block_type":"box","text":"costs (including the daily calculations of NAV); insurance; interest; brokerage costs; litigation and other","page_number":164,"box":{"x":116,"y":591,"width":767,"height":12}},{"id":"2ce38b9f-b55a-4030-96aa-bef6579f3ab1","block_type":"box","text":"extraordinary or non-recurring expenses; and other expenses properly payable by the Fund. Certain","page_number":164,"box":{"x":116,"y":606,"width":747,"height":12}},{"id":"31c299ef-82d6-4a7a-9774-5763f070294a","block_type":"box","text":"accounting services are provided to each Fund by State Street Bank and Trust Company (“State","page_number":164,"box":{"x":116,"y":622,"width":720,"height":12}},{"id":"c9b0fea1-2544-40ec-aaa8-ec3b9cda3dc5","block_type":"box","text":"Street”), BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”) or JPMorgan Chase Bank, N.A.","page_number":164,"box":{"x":116,"y":637,"width":746,"height":12}},{"id":"2c59bd8f-4fc9-498e-951a-d5e36e46a4af","block_type":"box","text":"(“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as applicable, and each","page_number":164,"box":{"x":117,"y":653,"width":761,"height":12}},{"id":"8b4f8bc2-ee72-4b7c-9c50-0d2f4af02fae","block_type":"box","text":"Fund. Each Fund pays a fee for these services. In addition, the Manager provides certain accounting","page_number":164,"box":{"x":117,"y":668,"width":746,"height":12}},{"id":"8842ebb7-6ce5-4b57-a15f-28975a990a82","block_type":"box","text":"services to each Fund and the Fund pays the Manager a fee for such services. The Distributor pays","page_number":164,"box":{"x":116,"y":684,"width":740,"height":12}},{"id":"be59a63f-83ac-433c-9eac-d301467a9379","block_type":"box","text":"certain promotional expenses of the Funds incurred in connection with the offering of shares of the","page_number":164,"box":{"x":116,"y":699,"width":731,"height":13}},{"id":"1ea12781-f1a3-46f3-98bd-07d1b2929547","block_type":"box","text":"Funds. Certain expenses are financed by each Fund pursuant to distribution plans in compliance with","page_number":164,"box":{"x":117,"y":715,"width":751,"height":12}},{"id":"cd7127b0-f2d0-4319-9e16-39491ad3772d","block_type":"box","text":"Rule 12b-1 under the Investment Company Act. See “Purchase of Shares — Distribution and/or","page_number":164,"box":{"x":117,"y":730,"width":710,"height":13}},{"id":"1253674f-ecdf-429c-997f-fe0d3b32b505","block_type":"box","text":"Shareholder Servicing Plans.”","page_number":164,"box":{"x":116,"y":746,"width":221,"height":12}},{"id":"771453e0-95da-4791-8860-8f7f6702cc68","block_type":"box","text":"Sub-Advisory Fee.","page_number":164,"box":{"x":117,"y":777,"width":135,"height":12}},{"id":"a2af4b7b-bcaa-4548-b6ef-eb266a754acf","block_type":"box","text":"The Manager of certain Funds has entered into one or more sub-advisory","page_number":164,"box":{"x":259,"y":777,"width":546,"height":12}},{"id":"146748ac-41b7-4687-ba52-3d728ccbc796","block_type":"box","text":"agreements (the “Sub-Advisory Agreements”) with the sub-adviser or sub-advisers identified in each","page_number":164,"box":{"x":116,"y":792,"width":743,"height":13}},{"id":"cffb040a-e373-41b5-ab37-c2be39dceb95","block_type":"box","text":"such Fund’s Prospectus (the “Sub-Adviser”) pursuant to which the Sub-Adviser provides sub-advisory","page_number":164,"box":{"x":116,"y":808,"width":755,"height":12}},{"id":"3f49a2fc-95ba-4559-b66c-30f95a48f035","block_type":"box","text":"services to the Manager with respect to the Fund.","page_number":164,"box":{"x":116,"y":824,"width":367,"height":12}},{"id":"1670847f-d4cd-49a7-b776-3325f97c7575","block_type":"box","text":"Organization of the Manager.","page_number":164,"box":{"x":117,"y":854,"width":215,"height":13}},{"id":"874ab494-794a-431c-96d5-f74a76d90e35","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and","page_number":164,"box":{"x":334,"y":854,"width":519,"height":13}},{"id":"92fa1df9-4e7d-4fbf-a69d-c6177310021d","block_type":"box","text":"BlackRock Fund Advisors is a California corporation. 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BlackRock, Inc., through its subsidiaries and divisions, provides","page_number":165,"box":{"x":116,"y":87,"width":697,"height":12}},{"id":"f34b1187-2e61-4f86-afb0-c2a7492ee7f4","block_type":"box","text":"(i) investment management services to individuals and institutional investors through separate account","page_number":165,"box":{"x":117,"y":102,"width":765,"height":13}},{"id":"0ab73ad3-5d5e-444f-9e3c-9fa7646c8136","block_type":"box","text":"management, non-discretionary advisory programs and commingled investment vehicles; (ii) risk","page_number":165,"box":{"x":117,"y":118,"width":722,"height":12}},{"id":"8ef8f9ee-d8ea-4e45-bab4-642bfb1cfa37","block_type":"box","text":"management services, investment accounting and trade processing tools; (iii) transition management","page_number":165,"box":{"x":117,"y":134,"width":755,"height":12}},{"id":"be0ab34a-d89e-495f-8f2a-0cc930fa86ba","block_type":"box","text":"services, and (iv) securities lending services.","page_number":165,"box":{"x":116,"y":149,"width":337,"height":12}},{"id":"669eedc5-9046-41a9-92d7-8632aebb995a","block_type":"box","text":"Duration and Termination.","page_number":165,"box":{"x":116,"y":180,"width":193,"height":10}},{"id":"65f1da65-5d0a-48e8-b9b0-600dab51d689","block_type":"box","text":"Unless earlier terminated as described below, each Management","page_number":165,"box":{"x":310,"y":180,"width":494,"height":12}},{"id":"cf3d6bf4-1864-4ce7-b623-951e5dee8a6a","block_type":"box","text":"Agreement and each Sub-Advisory Agreement will remain in effect for an initial two year period and","page_number":165,"box":{"x":116,"y":196,"width":743,"height":12}},{"id":"38097ac7-c25a-4a86-8066-13205022eb5b","block_type":"box","text":"from year to year thereafter if approved annually (a) by the Board of Directors or by a vote of a majority","page_number":165,"box":{"x":116,"y":211,"width":769,"height":12}},{"id":"b7f94263-ece8-442a-92d1-8d7bc66ea697","block_type":"box","text":"of the outstanding voting securities of a Fund and (b) by a majority of the Directors of the Fund who are","page_number":165,"box":{"x":116,"y":227,"width":771,"height":12}},{"id":"07246fdc-aa60-4a26-86c9-059afaa1388b","block_type":"box","text":"not parties to such agreement or interested persons (as defined in the Investment Company Act) of","page_number":165,"box":{"x":117,"y":242,"width":740,"height":12}},{"id":"466aa4cd-ecc0-4ce9-a06a-6fde7e81d13e","block_type":"box","text":"any such party. Each Management Agreement automatically terminates on assignment and may be","page_number":165,"box":{"x":116,"y":258,"width":745,"height":12}},{"id":"077365ee-af66-47cd-83fe-03539b1e92e3","block_type":"box","text":"terminated without penalty on 60 days’ written notice at the option of either party thereto or by the vote","page_number":165,"box":{"x":116,"y":273,"width":765,"height":12}},{"id":"4c8cdb9f-38a1-4d27-988e-f5ead84f79a3","block_type":"box","text":"of the shareholders of the applicable Fund.","page_number":165,"box":{"x":116,"y":289,"width":323,"height":12}},{"id":"571cf99e-80ff-43bf-bc6a-1f4d6ca9d493","block_type":"box","text":"Other Service Arrangements","page_number":165,"box":{"x":116,"y":320,"width":233,"height":12}},{"id":"f220c9ec-a30d-41bf-95c1-67f58c74011b","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":165,"box":{"x":115,"y":343,"width":355,"height":9}},{"id":"888b6601-6e74-477c-851b-5c73c8ad4309","block_type":"box","text":"Certain Funds have entered into an administration","page_number":165,"box":{"x":472,"y":343,"width":383,"height":9}},{"id":"fc3155e9-1edf-4f92-af5d-87ec9a4b4cbd","block_type":"box","text":"agreement (the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus","page_number":165,"box":{"x":116,"y":358,"width":756,"height":12}},{"id":"ead6d1d2-a256-4630-84dd-11af767d955d","block_type":"box","text":"and Part I of the Fund’s SAI (each an “Administrator”). 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Such contract is not assignable and may be terminated without","page_number":165,"box":{"x":117,"y":637,"width":720,"height":12}},{"id":"f25be574-32bf-4556-8da2-14f3c6f57aba","block_type":"box","text":"penalty on written notice at the option of either party thereto or by the vote of the shareholders of the","page_number":165,"box":{"x":117,"y":653,"width":750,"height":12}},{"id":"4c2eb4a6-ec41-4b69-b784-706b132d5a48","block_type":"box","text":"Fund.","page_number":165,"box":{"x":117,"y":669,"width":40,"height":9}},{"id":"f5a61f3b-26dc-4070-8b23-c8c4bef88402","block_type":"box","text":"Transfer Agency Services.","page_number":165,"box":{"x":118,"y":699,"width":193,"height":13}},{"id":"8812cf8b-1a4c-4c0c-8bb4-621dfcb49fb9","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer","page_number":165,"box":{"x":319,"y":699,"width":546,"height":13}},{"id":"456e511e-987e-4ce0-ae58-cb81a672b5c1","block_type":"box","text":"Agent”), a subsidiary of The Bank of New York Mellon Corporation, acts as each Fund’s Transfer","page_number":165,"box":{"x":116,"y":715,"width":719,"height":12}},{"id":"0fa63efd-891f-4e87-a252-40d3acbed9cd","block_type":"box","text":"Agent pursuant to a Transfer Agency, Dividend Disbursing Agency and Shareholder Servicing Agency","page_number":165,"box":{"x":116,"y":730,"width":758,"height":13}},{"id":"556a0a94-c6f5-4c56-88b8-b4610ee7a663","block_type":"box","text":"Agreement (the “Transfer Agency Agreement”) with the Funds. 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Each Fund","page_number":165,"box":{"x":116,"y":792,"width":732,"height":13}},{"id":"1bc595d9-a130-4d92-b4d9-1ee64e2cbd18","block_type":"box","text":"reimburses the Transfer Agent’s reasonable out-of-pocket expenses and pays a fee of 0.10% of","page_number":165,"box":{"x":117,"y":808,"width":711,"height":12}},{"id":"54ec4fe5-7b30-49fb-9e4e-7ea35c9ee54b","block_type":"box","text":"account assets for certain accounts that participate in certain fee-based programs sponsored by the","page_number":165,"box":{"x":116,"y":823,"width":740,"height":13}},{"id":"9fac2a1b-11ef-48cc-aa51-d7101432c506","block_type":"box","text":"Manager or its affiliates. For purposes of each Transfer Agency Agreement, the term “account”","page_number":165,"box":{"x":117,"y":839,"width":707,"height":12}},{"id":"16210cbb-b482-43ac-9e13-a935b6c888c0","block_type":"box","text":"includes a shareholder account maintained directly by the Transfer Agent and any other account","page_number":165,"box":{"x":117,"y":854,"width":719,"height":13}},{"id":"79810eb5-253c-4f48-8e9f-c14feb31b6b4","block_type":"box","text":"representing the beneficial interest of a person in the relevant share class on a recordkeeping system.","page_number":165,"box":{"x":117,"y":870,"width":761,"height":12}},{"id":"baeebc24-8708-4a12-b4ac-7f05724c5877","block_type":"box","text":"II-106","page_number":165,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"c10d8661-e9a6-46d5-9a74-8d2e18477119","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":165,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"32160b51-b7f8-4cf4-a696-945b46bfdbc8","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":166,"box":{"x":117,"y":87,"width":358,"height":12}},{"id":"c7090a6c-d55d-49b0-8c65-547522efb607","block_type":"box","text":"The Audit Committee of each Fund, the members of","page_number":166,"box":{"x":477,"y":87,"width":397,"height":11}},{"id":"28e34621-3860-4d95-a64f-518fd8baf0bf","block_type":"box","text":"which are non-interested Directors of the Fund, has selected an independent registered public","page_number":166,"box":{"x":116,"y":102,"width":703,"height":13}},{"id":"2f2afe6b-48c6-499a-9c5d-b608d76a69d8","block_type":"box","text":"accounting firm for that Fund that audits the Fund’s financial statements. Please see the inside back","page_number":166,"box":{"x":116,"y":118,"width":747,"height":12}},{"id":"2512a63f-0b0d-4f88-b61d-6e9749ce2502","block_type":"box","text":"cover page of your Fund’s Prospectus and Part I of this SAI for information on your Fund’s","page_number":166,"box":{"x":116,"y":134,"width":676,"height":12}},{"id":"17d84214-0fd3-49a6-b02a-efc7e3608672","block_type":"box","text":"independent registered public accounting firm.","page_number":166,"box":{"x":117,"y":149,"width":347,"height":12}},{"id":"5014aecb-21e6-4558-973c-f9f01aabfdb4","block_type":"box","text":"Custodian Services.","page_number":166,"box":{"x":117,"y":177,"width":147,"height":9}},{"id":"e336c354-72ca-42d9-b196-9a01739b8603","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are","page_number":166,"box":{"x":265,"y":177,"width":569,"height":12}},{"id":"e03bee91-cf42-4eb3-95c4-7195fb9277bf","block_type":"box","text":"provided on the inside back cover page of the Fund’s Prospectus. 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The Custodian is authorized","page_number":166,"box":{"x":116,"y":223,"width":771,"height":13}},{"id":"99edd6ba-e28f-4654-9e8b-2e6bab3b7fbf","block_type":"box","text":"to establish separate accounts in foreign currencies and to cause foreign securities owned by the Fund","page_number":166,"box":{"x":116,"y":239,"width":769,"height":12}},{"id":"85cd54b5-b5d2-44ec-a15c-7dce1d89af37","block_type":"box","text":"to be held in its offices outside the United States and with certain foreign banks and securities","page_number":166,"box":{"x":116,"y":254,"width":701,"height":13}},{"id":"7cb0d955-af86-4326-9d2b-d07ac015b985","block_type":"box","text":"depositories. A Fund also may use special purpose custodian banks from time to time for certain","page_number":166,"box":{"x":116,"y":270,"width":721,"height":12}},{"id":"cf69876b-e10f-4cd9-85b6-dd2708c69988","block_type":"box","text":"assets.","page_number":166,"box":{"x":116,"y":286,"width":58,"height":9}},{"id":"5b4d4745-b015-468f-a0bc-b2b135cf354d","block_type":"box","text":"For certain Feeder Funds, the Custodian also acts as the custodian of the Master Portfolio’s assets.","page_number":166,"box":{"x":117,"y":313,"width":745,"height":12}},{"id":"9d6221b4-77b8-412d-a6a2-a6cd0bec8eb9","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. With respect to certain Funds, on","page_number":166,"box":{"x":117,"y":341,"width":764,"height":12}},{"id":"d6882220-0643-4440-9920-d1d0e486f179","block_type":"box","text":"a monthly basis the Custodian nets the Fund’s daily positive and negative cash balances and","page_number":166,"box":{"x":116,"y":357,"width":696,"height":12}},{"id":"e496ca39-0d2e-4cba-a743-5f43c035cc68","block_type":"box","text":"calculates a credit (“custody credit”) or a charge based on that net amount. With respect to such","page_number":166,"box":{"x":116,"y":372,"width":718,"height":12}},{"id":"d788b93d-e3da-4a6c-ba12-11c77cd1184b","block_type":"box","text":"Funds, the custodian fees, including the amount of any overdraft charges, may be reduced by the","page_number":166,"box":{"x":117,"y":388,"width":728,"height":12}},{"id":"bab98ed2-6139-4c76-8f4c-9e6b295461c6","block_type":"box","text":"amount of such custody credits, and any unused credits at the end of a given month may be carried","page_number":166,"box":{"x":116,"y":403,"width":745,"height":12}},{"id":"a4435717-b2a0-4d48-91f6-b9c10b3124fe","block_type":"box","text":"forward to a subsequent month. Any such credits unused by the end of a Fund’s fiscal year will not","page_number":166,"box":{"x":116,"y":419,"width":737,"height":12}},{"id":"7fcb31c5-2fca-4b7b-b293-0de003efc7d0","block_type":"box","text":"expire. Net debits at the end of a given month are added to the Fund’s custody bill and paid by the","page_number":166,"box":{"x":116,"y":434,"width":734,"height":12}},{"id":"2db62a43-bdcf-44bf-80ae-1ec252b492e0","block_type":"box","text":"Fund.","page_number":166,"box":{"x":117,"y":450,"width":46,"height":9}},{"id":"7f1a6da4-5b66-4c9e-bc72-0228d9548d34","block_type":"box","text":"Accounting Services.","page_number":166,"box":{"x":115,"y":478,"width":156,"height":12}},{"id":"b0aa09dc-aa53-43cf-ab3c-196aca7a2afd","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM,","page_number":166,"box":{"x":273,"y":478,"width":614,"height":12}},{"id":"e27d8d26-1f4a-4713-8062-798388c58efb","block_type":"box","text":"pursuant to which State Street, BNY Mellon or JPM provides certain accounting and administrative","page_number":166,"box":{"x":117,"y":493,"width":736,"height":12}},{"id":"7ac05d8c-7ac4-4086-b476-81ed826bac75","block_type":"box","text":"services to the Fund. 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Fund’s independent registered public accounting firm.","page_number":173,"box":{"x":150,"y":417,"width":437,"height":12}},{"id":"96a9d89c-f000-4a0d-b3ae-fe15beac0c92","block_type":"box","text":"6. Fund’s accounting services provider.","page_number":173,"box":{"x":150,"y":438,"width":311,"height":12}},{"id":"887c8207-4d99-4ded-9d6c-6e294aaaea87","block_type":"box","text":"7. Independent rating agencies — Lipper Inc., Moody’s, Fitch.","page_number":173,"box":{"x":150,"y":460,"width":478,"height":12}},{"id":"7bb7c976-848b-437b-91bd-91434f30c027","block_type":"box","text":"8. Information aggregators — S&P Global, Bloomberg, eVestments Alliance and Informa/PSN","page_number":173,"box":{"x":150,"y":481,"width":716,"height":12}},{"id":"cbea892b-b32c-45bc-8a2d-8bd6760be5e6","block_type":"box","text":"Investment Solutions.","page_number":173,"box":{"x":185,"y":497,"width":164,"height":9}},{"id":"d9cb17ec-b3c0-4b2a-b18e-15af8e5dbc30","block_type":"box","text":"9. Pricing Vendors — Refinitiv Limited, Refinitiv US LLC, ICE Data Services, Bloomberg, IHS","page_number":173,"box":{"x":150,"y":518,"width":709,"height":12}},{"id":"20478d5b-5553-48ec-a7a2-3b44d6239167","block_type":"box","text":"Markit, JP Morgan Pricing-Direct, Valuation Research Corporation, Murray, Devine & Co., Inc.","page_number":173,"box":{"x":184,"y":534,"width":702,"height":12}},{"id":"ac155e16-7270-44da-be55-a269e3f2a234","block_type":"box","text":"and WM Company PLC.","page_number":173,"box":{"x":184,"y":549,"width":185,"height":13}},{"id":"92add2b3-6284-483e-aae4-1f20c70eb19c","block_type":"box","text":"10. Valuation Providers — Houlihan Lokey, Lincoln Financial, Chatham and Kroll.","page_number":173,"box":{"x":151,"y":571,"width":613,"height":12}},{"id":"ae1cc270-b771-4741-a357-ca7ace58d10d","block_type":"box","text":"11. Third-party feeder funds — Stock Index Fund, a series of Homestead Funds, Inc. and","page_number":173,"box":{"x":151,"y":592,"width":672,"height":13}},{"id":"d08b89bc-4f83-4c9e-b743-b06f5c5ff873","block_type":"box","text":"Transamerica Stock Index, a series of Transamerica Funds and their respective boards,","page_number":173,"box":{"x":183,"y":608,"width":659,"height":12}},{"id":"4ffd9e5b-2cbd-4fcb-a2e6-9627414e8b21","block_type":"box","text":"sponsors, administrators and other service providers.","page_number":173,"box":{"x":184,"y":624,"width":400,"height":11}},{"id":"0183c901-86b7-49d4-b3c5-d538da831eab","block_type":"box","text":"12. Affiliated feeder funds — iShares S&P 500 Index Fund, iShares U.S. Aggregate Bond Index","page_number":173,"box":{"x":151,"y":645,"width":719,"height":12}},{"id":"6a997e19-eb6a-417d-bd98-f6261e3d681e","block_type":"box","text":"Fund, Treasury Money Market Fund (Cayman) and their respective boards, sponsors,","page_number":173,"box":{"x":184,"y":660,"width":635,"height":13}},{"id":"3b852d5b-a989-4b0a-b43d-acc98432c995","block_type":"box","text":"administrators and other service providers.","page_number":173,"box":{"x":184,"y":676,"width":316,"height":12}},{"id":"9904b3b9-db2d-4ef8-8bc3-bc52cf6e3f03","block_type":"box","text":"13. Other — Investment Company Institute, Goldman Sachs Asset Management, L.P.,","page_number":173,"box":{"x":151,"y":697,"width":645,"height":13}},{"id":"a5e23c25-fb18-4d3b-86d0-f24c998b5413","block_type":"box","text":"J.P. Morgan Chase Bank, N.A., Mizuho Asset Management Co., Ltd., Nationwide Fund","page_number":173,"box":{"x":183,"y":713,"width":646,"height":12}},{"id":"49824abd-2fa6-4c39-8509-a28e5f46a252","block_type":"box","text":"Advisors, State Street Bank and Trust Company, Donnelley Financial Solutions, Inc. and","page_number":173,"box":{"x":183,"y":728,"width":656,"height":13}},{"id":"f52d1081-e45e-4d3a-a941-6d08e283c398","block_type":"box","text":"Silicon Valley Bank.","page_number":173,"box":{"x":184,"y":744,"width":145,"height":12}},{"id":"bba298c6-6e32-491b-9a85-e8ca0fffb7eb","block_type":"box","text":"With respect to each such arrangement, a Fund has a legitimate business purpose for the release of","page_number":173,"box":{"x":116,"y":772,"width":746,"height":12}},{"id":"34e7c2e9-6ed7-40d5-9d3d-193784b69f3f","block_type":"box","text":"information. 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The Funds, BlackRock","page_number":173,"box":{"x":116,"y":803,"width":752,"height":12}},{"id":"64441392-1d27-4654-b705-b061d48e40c0","block_type":"box","text":"and their affiliates do not receive any compensation or other consideration in connection with such","page_number":173,"box":{"x":116,"y":818,"width":728,"height":12}},{"id":"66d62f12-3f85-4ca6-926a-98e2321b007f","block_type":"box","text":"arrangements.","page_number":173,"box":{"x":116,"y":834,"width":113,"height":12}},{"id":"0befab3f-b007-49a6-8016-96d06bf57042","block_type":"box","text":"The Funds and the Manager monitor, to the extent possible, the use of Confidential Information by the","page_number":173,"box":{"x":116,"y":861,"width":762,"height":12}},{"id":"21810f93-c690-43bf-b1b7-b63fee899ba0","block_type":"box","text":"individuals or firms to which it has been disclosed. To do so, in addition to the requirements of any","page_number":173,"box":{"x":117,"y":877,"width":732,"height":12}},{"id":"8678b4da-44db-45e0-9bc3-00bd7750e775","block_type":"box","text":"II-114","page_number":173,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"0372fab0-a6c2-46a6-ac57-ad98c94f920f","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":173,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"fe62db39-ff76-474f-bfbf-aada33cf4194","block_type":"box","text":"applicable confidentiality agreement and/or the terms and conditions of the Fund’s and Manager’s","page_number":174,"box":{"x":116,"y":87,"width":730,"height":12}},{"id":"960a177c-9473-4cf1-a5f9-58f18259b84e","block_type":"box","text":"Codes of Ethics — all of which require persons or entities in possession of Confidential Information to","page_number":174,"box":{"x":117,"y":102,"width":756,"height":12}},{"id":"d5afb38c-facc-4ee9-9b13-bd1a90213b11","block_type":"box","text":"keep such information confidential and not to trade on such information for their own benefit — the","page_number":174,"box":{"x":117,"y":118,"width":734,"height":12}},{"id":"c2ccd7fe-3a9c-4eaa-a036-298a0a89a8af","block_type":"box","text":"Manager’s compliance personnel under the supervision of the Fund’s CCO, monitor the Manager’s","page_number":174,"box":{"x":117,"y":134,"width":737,"height":12}},{"id":"6a8c3770-cbae-4eea-b5ef-bdf1095ffb6a","block_type":"box","text":"securities trading desks to determine whether individuals or firms who have received Confidential","page_number":174,"box":{"x":116,"y":149,"width":726,"height":12}},{"id":"eb0b2fd5-defb-44a5-9c5a-87802411938b","block_type":"box","text":"Information have made any trades on the basis of that information. In addition, the Manager maintains","page_number":174,"box":{"x":117,"y":165,"width":762,"height":12}},{"id":"185b4897-c9f5-492f-95a3-01bcd3308e41","block_type":"box","text":"an internal restricted list to prevent trading by the personnel of the Manager or its affiliates in","page_number":174,"box":{"x":116,"y":180,"width":691,"height":12}},{"id":"f900bb6c-2f42-4eff-ad21-ceb748a11541","block_type":"box","text":"securities — including securities held by a Fund — about which the Manager has Confidential","page_number":174,"box":{"x":116,"y":196,"width":700,"height":12}},{"id":"72b112c3-dda0-4f1d-a5f2-fe35c4a8d02e","block_type":"box","text":"Information. 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(collectively referred to in this section as “BlackRock”) and their","page_number":174,"box":{"x":116,"y":314,"width":707,"height":12}},{"id":"53de55cf-76fa-4dae-8b63-b653a8aedb62","block_type":"box","text":"respective directors, officers or employees, with respect to the Funds and/or other accounts managed","page_number":174,"box":{"x":116,"y":329,"width":760,"height":12}},{"id":"51c5abb0-127f-459c-928f-b1b21dfd097f","block_type":"box","text":"by BlackRock, may give rise to actual or perceived conflicts of interest such as those described below.","page_number":174,"box":{"x":116,"y":345,"width":764,"height":12}},{"id":"fbcb2983-4376-4ebb-85dc-d8b5f9e33170","block_type":"box","text":"BlackRock is one of the world’s largest asset management firms. BlackRock, its subsidiaries and their","page_number":174,"box":{"x":117,"y":377,"width":759,"height":12}},{"id":"07b92a52-3abf-4785-9e80-70b9bfa9d600","block_type":"box","text":"respective directors, officers and employees, including the business units or entities and personnel","page_number":174,"box":{"x":117,"y":392,"width":736,"height":12}},{"id":"51fb9b69-6b47-4ec2-a204-abbff93bd5a2","block_type":"box","text":"who may be involved in the investment activities and business operations of a Fund, are engaged","page_number":174,"box":{"x":116,"y":408,"width":729,"height":12}},{"id":"9f6da70d-8eb9-4390-9952-fcdaaf1e19c9","block_type":"box","text":"worldwide in businesses, including managing equities, fixed income securities, cash and alternative","page_number":174,"box":{"x":116,"y":423,"width":742,"height":12}},{"id":"6605e565-219a-4e99-99e4-4ab3068b254c","block_type":"box","text":"investments, and other financial services, and have interests other than that of managing the Funds.","page_number":174,"box":{"x":117,"y":439,"width":748,"height":12}},{"id":"07682a4f-5613-47a5-8f12-81c151c541bd","block_type":"box","text":"These are considerations of which investors in a Fund should be aware, and which may cause conflicts","page_number":174,"box":{"x":116,"y":454,"width":771,"height":12}},{"id":"c3cd208d-dcfc-4fe0-b778-57b2f0612987","block_type":"box","text":"of interest that could disadvantage a Fund and its shareholders.","page_number":174,"box":{"x":116,"y":470,"width":479,"height":12}},{"id":"39b97136-e61f-4125-9696-2f92878df1a1","block_type":"box","text":"These businesses and interests include potential multiple advisory, transactional, financial and other","page_number":174,"box":{"x":116,"y":502,"width":749,"height":12}},{"id":"b20d9349-05c1-45d7-a9fb-61ff80726926","block_type":"box","text":"relationships with, or interests in companies and interests in securities or other instruments that may be","page_number":174,"box":{"x":117,"y":518,"width":771,"height":12}},{"id":"375c0d18-6c24-4166-b875-f3e5caa81feb","block_type":"box","text":"purchased or sold by a Fund.","page_number":174,"box":{"x":117,"y":533,"width":221,"height":12}},{"id":"7f961ed8-cdb3-44c2-87c3-5cd40ff35e6e","block_type":"box","text":"BlackRock may have proprietary interests in, and may manage or advise with respect to, accounts or","page_number":174,"box":{"x":117,"y":565,"width":754,"height":12}},{"id":"4f26c2f7-3f70-4fcf-888b-c59bb19c0aa3","block_type":"box","text":"funds (including separate accounts and other funds and collective investment vehicles) that have","page_number":174,"box":{"x":116,"y":581,"width":724,"height":12}},{"id":"2201fb89-1cc0-4e42-809c-570529075ffa","block_type":"box","text":"investment objectives identical or similar to those of a Fund and/or that engage in transactions in the","page_number":174,"box":{"x":117,"y":596,"width":749,"height":12}},{"id":"b4447e26-c000-42f1-9682-e1280463ece5","block_type":"box","text":"same types of securities, currencies and instruments as the Fund. Such other funds or accounts may","page_number":174,"box":{"x":116,"y":612,"width":755,"height":12}},{"id":"5dca1a44-e054-4d7e-b3f1-8bd9c13f3771","block_type":"box","text":"offer exposure to strategies that are identical or substantially similar to those of a Fund but with","page_number":174,"box":{"x":116,"y":627,"width":710,"height":12}},{"id":"ffcd3b98-3c36-4c60-b192-96fe955e34c1","block_type":"box","text":"different fees and expenses, governance and structures, and/or services provided by BlackRock.","page_number":174,"box":{"x":116,"y":643,"width":724,"height":12}},{"id":"918ed9b3-8806-443e-af48-d27a242e5d6e","block_type":"box","text":"BlackRock is also a major participant in the global currency, equities, swap and fixed income markets,","page_number":174,"box":{"x":117,"y":658,"width":760,"height":12}},{"id":"3baf9902-06a3-4476-9c80-0060eeff9415","block_type":"box","text":"in each case, for the accounts of clients and, in some cases, on a proprietary basis. 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While not expected, it is possible that a recipient of portfolio holdings information for such","page_number":174,"box":{"x":116,"y":877,"width":769,"height":13}},{"id":"6eef9dd0-207b-4fee-86eb-afdb7fe19ae2","block_type":"box","text":"II-115","page_number":174,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"67e68f9a-9737-4c8d-aeae-d4c638128d9a","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":174,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"bb2e029c-2ea4-4811-8a33-a30c895fbefe","block_type":"box","text":"an investment vehicle could cause harm to a Fund that is managed in an identical or substantially","page_number":175,"box":{"x":116,"y":87,"width":729,"height":12}},{"id":"0b3c6456-f2fb-442e-9022-e3138d362e96","block_type":"box","text":"similar manner, including by trading ahead of or against such Fund based on the information received.","page_number":175,"box":{"x":116,"y":102,"width":764,"height":13}},{"id":"35cf486f-6d76-4842-a207-37205976e64f","block_type":"box","text":"When BlackRock seeks to purchase or sell the same assets for client accounts, including a Fund, the","page_number":175,"box":{"x":116,"y":134,"width":757,"height":12}},{"id":"f24aaa30-b130-4b99-87ab-b2fedf3d3231","block_type":"box","text":"assets actually purchased or sold may be allocated among the accounts on a basis determined in its","page_number":175,"box":{"x":116,"y":149,"width":751,"height":12}},{"id":"d4f088c5-41cf-4515-888f-6f0d942a28bd","block_type":"box","text":"good faith discretion to be equitable. In some cases, this system may adversely affect the size or price","page_number":175,"box":{"x":116,"y":165,"width":764,"height":12}},{"id":"f081e466-8c78-49e3-98af-131ef383af55","block_type":"box","text":"of the assets purchased or sold for a Fund. In addition, transactions in investments by one or more","page_number":175,"box":{"x":116,"y":180,"width":737,"height":12}},{"id":"57c177af-c37a-407b-aae0-7eeb7d3d4f2a","block_type":"box","text":"other accounts managed by BlackRock may have the effect of diluting or otherwise disadvantaging the","page_number":175,"box":{"x":116,"y":196,"width":767,"height":12}},{"id":"de73ce03-c304-43dd-a2d1-7321b3188f9c","block_type":"box","text":"values, prices or investment strategies of a Fund, particularly, but not limited to, with respect to small","page_number":175,"box":{"x":116,"y":211,"width":752,"height":12}},{"id":"f806d706-58dc-4a81-81bb-008b14910d73","block_type":"box","text":"capitalization, emerging market or less liquid strategies. This may occur with respect to BlackRock","page_number":175,"box":{"x":116,"y":227,"width":735,"height":12}},{"id":"8c4bee7d-2541-4ee8-a218-685f9e5ed853","block_type":"box","text":"advised accounts when investment decisions regarding a Fund are based on research or other","page_number":175,"box":{"x":116,"y":242,"width":709,"height":12}},{"id":"0455bae3-050a-4f33-84bf-c4bebb2815fb","block_type":"box","text":"information that is also used to support decisions for other accounts. When BlackRock implements a","page_number":175,"box":{"x":117,"y":258,"width":749,"height":11}},{"id":"eda22191-c4fd-4790-aad5-0440c20077f2","block_type":"box","text":"portfolio decision or strategy on behalf of another account ahead of, or contemporaneously with, similar","page_number":175,"box":{"x":117,"y":273,"width":771,"height":12}},{"id":"ba1e3e48-c76a-4ccc-8f2b-fbc611894475","block_type":"box","text":"decisions or strategies for a Fund, market impact, liquidity constraints, or other factors could result in","page_number":175,"box":{"x":116,"y":289,"width":751,"height":12}},{"id":"8605ed3d-f296-4c1a-b1a5-5bed9150c145","block_type":"box","text":"the Fund receiving less favorable trading results and the costs of implementing such decisions or","page_number":175,"box":{"x":116,"y":304,"width":725,"height":12}},{"id":"bdbfc1b8-97ea-4a9d-b04e-c241d44bfdfe","block_type":"box","text":"strategies could be increased or the Fund could otherwise be disadvantaged. BlackRock may, in","page_number":175,"box":{"x":116,"y":320,"width":721,"height":12}},{"id":"ed9d6784-1a99-40df-a34a-b14d50bea375","block_type":"box","text":"certain cases, elect to implement internal policies and procedures designed to limit such","page_number":175,"box":{"x":116,"y":335,"width":658,"height":12}},{"id":"3a847daa-96be-4cf6-85a5-1c8c5b6f45c2","block_type":"box","text":"consequences, which may cause a Fund to be unable to engage in certain activities, including","page_number":175,"box":{"x":116,"y":351,"width":703,"height":12}},{"id":"793f7b5c-4b70-4f4c-898d-d519c982e9b4","block_type":"box","text":"purchasing or disposing of securities, when it might otherwise be desirable for it to do so. Conflicts may","page_number":175,"box":{"x":117,"y":366,"width":770,"height":12}},{"id":"50dff525-796d-4e2b-83cd-b13ebb2992a8","block_type":"box","text":"also arise because portfolio decisions regarding a Fund may benefit other accounts managed by","page_number":175,"box":{"x":116,"y":382,"width":721,"height":12}},{"id":"f77e9cbe-c703-4b75-ba5d-74cfa8eeb3da","block_type":"box","text":"BlackRock. For example, the sale of a long position or","page_number":175,"box":{"x":117,"y":397,"width":406,"height":12}},{"id":"3da9d7d4-b237-4ad8-8bb5-8934504a9689","block_type":"box","text":"establishment of a short position by a Fund may","page_number":175,"box":{"x":523,"y":397,"width":362,"height":12}},{"id":"48b7c30a-d437-4633-a765-c497192ba67f","block_type":"box","text":"impair the price of the same security sold short by (and therefore benefit) BlackRock or its other","page_number":175,"box":{"x":117,"y":413,"width":714,"height":12}},{"id":"401a3cb8-a6c5-48ec-a963-bc39f1686ab7","block_type":"box","text":"accounts or funds, and the purchase of a security or covering of a short position in a security by a Fund","page_number":175,"box":{"x":116,"y":428,"width":772,"height":12}},{"id":"529095b1-9e33-4106-b515-9f0fedd5f1d4","block_type":"box","text":"may increase the price of the same security held by (and therefore benefit) BlackRock or its other","page_number":175,"box":{"x":117,"y":444,"width":727,"height":12}},{"id":"2a51ce3a-2535-4f50-99ef-b630b8dae532","block_type":"box","text":"accounts or funds.","page_number":175,"box":{"x":116,"y":459,"width":142,"height":10}},{"id":"dc19ed2d-568c-4b54-be1d-e07ff7678df7","block_type":"box","text":"BlackRock, on behalf of other client accounts, on the one hand, and a Fund, on the other hand, may","page_number":175,"box":{"x":117,"y":490,"width":747,"height":12}},{"id":"8de8ba81-5153-4c27-a52e-b0e28e96835f","block_type":"box","text":"invest in or extend credit to different parts of the capital structure of a single issuer. BlackRock may","page_number":175,"box":{"x":117,"y":506,"width":739,"height":12}},{"id":"be5a2e59-f2a5-438b-be6e-26238e8ef37a","block_type":"box","text":"pursue rights, provide advice or engage in other activities, or refrain from pursuing rights, providing","page_number":175,"box":{"x":117,"y":521,"width":737,"height":12}},{"id":"3aa3eedf-6e8c-4076-885b-0c7ba97d294f","block_type":"box","text":"advice or engaging in other activities, on behalf of other clients with respect to an issuer in which a","page_number":175,"box":{"x":116,"y":537,"width":735,"height":12}},{"id":"bafd2854-4c75-4a3a-9aca-7e7134a650e9","block_type":"box","text":"Fund has invested, and such actions (or refraining from action) may have a material adverse effect on","page_number":175,"box":{"x":117,"y":552,"width":761,"height":12}},{"id":"b2f41770-3c6d-4cb5-8beb-b221308c54d7","block_type":"box","text":"the Fund. In situations in which clients of BlackRock (including the Funds) hold positions in multiple","page_number":175,"box":{"x":116,"y":568,"width":740,"height":12}},{"id":"ff6756d7-3a69-464f-9374-24979347da81","block_type":"box","text":"parts of the capital structure of an issuer, BlackRock may not pursue certain actions or remedies that","page_number":175,"box":{"x":117,"y":583,"width":752,"height":12}},{"id":"06de9437-d721-41bd-b383-e0f8a20ecf93","block_type":"box","text":"may be available to a Fund, as a result of legal and regulatory requirements or otherwise. BlackRock","page_number":175,"box":{"x":117,"y":599,"width":752,"height":12}},{"id":"85261101-b04f-4c39-bec4-a8d1198eabf5","block_type":"box","text":"addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":175,"box":{"x":116,"y":614,"width":722,"height":12}},{"id":"fa49fe12-af93-4f1e-8b1c-c7bb0423d945","block_type":"box","text":"particular situations. For example, BlackRock may determine to rely on information barriers between","page_number":175,"box":{"x":117,"y":630,"width":748,"height":12}},{"id":"93993b07-e362-4cfd-aace-dd4345bb4dc3","block_type":"box","text":"different business units or portfolio management teams. BlackRock may also determine to rely on the","page_number":175,"box":{"x":116,"y":645,"width":757,"height":12}},{"id":"9b9f6811-5cd6-42d1-8332-322a915bf699","block_type":"box","text":"actions of similarly situated holders of loans or securities rather than, or in connection with, taking such","page_number":175,"box":{"x":116,"y":661,"width":762,"height":12}},{"id":"e8fb499d-9fa6-42d5-baf2-4212b3e44cb3","block_type":"box","text":"actions itself on behalf of the Funds.","page_number":175,"box":{"x":116,"y":676,"width":268,"height":10}},{"id":"b3c42f7f-f67a-4b6c-a41b-2daa9d941ce7","block_type":"box","text":"In addition, to the extent permitted by applicable law, certain Funds may invest their assets in other","page_number":175,"box":{"x":117,"y":707,"width":734,"height":12}},{"id":"501c3572-ed42-4f04-953d-b7a006eabffc","block_type":"box","text":"funds advised by BlackRock, including funds that are managed by one or more of the same portfolio","page_number":175,"box":{"x":116,"y":723,"width":743,"height":12}},{"id":"183cac5d-6262-48db-a684-76ccf4ae47de","block_type":"box","text":"managers, which could result in conflicts of interest relating to asset allocation, timing of Fund","page_number":175,"box":{"x":117,"y":738,"width":693,"height":12}},{"id":"7e349afc-aa6c-4a91-abc2-05d2afa507ca","block_type":"box","text":"purchases and redemptions, and increased remuneration and profitability for BlackRock and/or its","page_number":175,"box":{"x":117,"y":754,"width":725,"height":12}},{"id":"fad93332-6b95-4182-be5f-9b3ac3c58a75","block_type":"box","text":"personnel, including portfolio managers.","page_number":175,"box":{"x":117,"y":769,"width":295,"height":12}},{"id":"31c6794e-e039-4b97-b605-650746577592","block_type":"box","text":"Third parties, including service providers to BlackRock or the Fund, may sponsor events (including, but","page_number":175,"box":{"x":116,"y":800,"width":764,"height":12}},{"id":"b4108445-633f-4e4b-9015-30d6fff1ad3b","block_type":"box","text":"not limited to, marketing and promotional activities and presentations, educational training programs","page_number":175,"box":{"x":117,"y":816,"width":741,"height":12}},{"id":"9a981420-faf3-499a-8834-9ee582766938","block_type":"box","text":"and conferences) for registered representatives, other professionals and individual investors. There is","page_number":175,"box":{"x":116,"y":831,"width":759,"height":12}},{"id":"72c35576-4f5a-4662-9281-74a2709d8ada","block_type":"box","text":"a potential conflict of interest as such sponsorships may defray the costs of such activities to","page_number":175,"box":{"x":116,"y":847,"width":691,"height":12}},{"id":"901e00f4-313a-4c50-9951-ea06af0cc99a","block_type":"box","text":"BlackRock, and may provide an incentive to BlackRock to retain such third parties to provide services","page_number":175,"box":{"x":117,"y":862,"width":757,"height":12}},{"id":"033ea6d4-d90a-4cfd-9d44-f4e06611b358","block_type":"box","text":"to the Fund.","page_number":175,"box":{"x":116,"y":878,"width":94,"height":9}},{"id":"ffc5ba1d-7554-4e72-b269-79b6ad1dbcf2","block_type":"box","text":"II-116","page_number":175,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"fae7093c-f97a-4267-84c1-0bedab257f7a","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":175,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"7ce118b3-baab-42ce-89cd-b7362ced30b0","block_type":"box","text":"In certain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to","page_number":176,"box":{"x":117,"y":87,"width":765,"height":12}},{"id":"764dfa26-0c08-4ca6-b1c2-1b8b0e12b89e","block_type":"box","text":"another fund or account advised by BlackRock. BlackRock may (but is not required to) effect","page_number":176,"box":{"x":116,"y":102,"width":692,"height":13}},{"id":"3949a415-0e06-4eee-a873-62214886059a","block_type":"box","text":"purchases and sales between BlackRock clients (“cross trades”), including the Funds, if BlackRock","page_number":176,"box":{"x":117,"y":118,"width":739,"height":12}},{"id":"bcf70800-36ba-4af7-a18a-9fbacb293ed9","block_type":"box","text":"believes such transactions are appropriate based on each party’s investment objectives and","page_number":176,"box":{"x":117,"y":134,"width":687,"height":12}},{"id":"7268b404-81a7-4e52-a00a-6b0b48aa107b","block_type":"box","text":"guidelines, subject to applicable law and regulation. There may be potential conflicts of interest or","page_number":176,"box":{"x":116,"y":149,"width":728,"height":12}},{"id":"19844c37-0a4a-4a02-8879-4e058c2eabd1","block_type":"box","text":"regulatory issues relating to these transactions which could limit BlackRock’s decision to engage in","page_number":176,"box":{"x":117,"y":165,"width":738,"height":12}},{"id":"5c5421cc-9823-4af6-95e0-5676431494e0","block_type":"box","text":"these transactions for the Funds. BlackRock may have a potentially conflicting division of loyalties and","page_number":176,"box":{"x":116,"y":180,"width":763,"height":12}},{"id":"f125e4d2-1c06-4c4b-a59f-442b79e0f36a","block_type":"box","text":"responsibilities to the parties in such transactions.","page_number":176,"box":{"x":117,"y":196,"width":374,"height":11}},{"id":"888f3eb4-62f9-4261-b6f7-aa20e1e88f0b","block_type":"box","text":"BlackRock and its clients may pursue or enforce rights with respect to an issuer in which a Fund has","page_number":176,"box":{"x":117,"y":227,"width":749,"height":12}},{"id":"6b209677-80a8-46d4-9cf4-0297ed6bb8e1","block_type":"box","text":"invested, and those activities may have an adverse effect on the Fund. As a result, prices, availability,","page_number":176,"box":{"x":117,"y":242,"width":760,"height":12}},{"id":"78f490b8-5555-433f-bc1f-529a2e261c23","block_type":"box","text":"liquidity and terms of the Fund’s investments may be negatively impacted by the activities of","page_number":176,"box":{"x":117,"y":258,"width":687,"height":12}},{"id":"fa1c16ad-22e3-492e-8e45-033a94fbc061","block_type":"box","text":"BlackRock or its clients, and transactions for the Fund may be impaired or effected at prices or terms","page_number":176,"box":{"x":117,"y":273,"width":753,"height":12}},{"id":"e3136529-fb54-4f37-b1fd-593aad554b02","block_type":"box","text":"that may be less favorable than would otherwise have been the case.","page_number":176,"box":{"x":116,"y":289,"width":520,"height":12}},{"id":"32eec414-e1a0-4227-8cbd-77b7edd769b0","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by","page_number":176,"box":{"x":116,"y":320,"width":716,"height":12}},{"id":"e83654db-32f1-492e-8403-d749367b08f9","block_type":"box","text":"BlackRock for its proprietary accounts or other accounts (including investment companies or collective","page_number":176,"box":{"x":117,"y":335,"width":763,"height":12}},{"id":"a338ab49-3652-4a12-88fd-6672ad36ecf0","block_type":"box","text":"investment vehicles) that it manages or advises. It is possible that one or more accounts managed or","page_number":176,"box":{"x":117,"y":351,"width":754,"height":12}},{"id":"7c7155cc-22ad-4b32-a782-b3230c8259db","block_type":"box","text":"advised by BlackRock and such other accounts will achieve investment results that are substantially","page_number":176,"box":{"x":116,"y":366,"width":747,"height":12}},{"id":"9da2f5e4-6322-4d96-b15c-746505f5dba8","block_type":"box","text":"more or less favorable than the results achieved by a Fund. Moreover, it is possible that a Fund will","page_number":176,"box":{"x":117,"y":382,"width":741,"height":12}},{"id":"d3a20124-29ba-4655-a081-9d8c15c85a5b","block_type":"box","text":"sustain losses during periods in which one or more proprietary or other accounts managed or advised","page_number":176,"box":{"x":116,"y":397,"width":759,"height":12}},{"id":"ce4b35c4-57d4-4fae-a727-2cafb75de95b","block_type":"box","text":"by BlackRock achieve significant profits. The opposite result is also possible.","page_number":176,"box":{"x":117,"y":413,"width":574,"height":12}},{"id":"739aa4bc-1a5d-49e7-88b9-5df6d8c68d87","block_type":"box","text":"From time to time, a Fund may be restricted from purchasing or selling securities, or from engaging in","page_number":176,"box":{"x":117,"y":444,"width":758,"height":12}},{"id":"b2a9a149-b51f-494c-8911-28d2a82cbc4d","block_type":"box","text":"other investment activities because of regulatory, legal or contractual requirements applicable to","page_number":176,"box":{"x":116,"y":459,"width":718,"height":12}},{"id":"7508aa66-0b54-48fe-856a-809cb737ed03","block_type":"box","text":"BlackRock or other accounts managed or advised by BlackRock, and/or the internal policies of","page_number":176,"box":{"x":117,"y":475,"width":706,"height":12}},{"id":"f77e56ae-c0eb-4cc3-95f7-a74f9eb62507","block_type":"box","text":"BlackRock designed to comply with such requirements. As a result, there may be periods, for example,","page_number":176,"box":{"x":117,"y":490,"width":769,"height":12}},{"id":"24644a76-e20c-44b5-b630-d8b599e80471","block_type":"box","text":"when BlackRock will not initiate or recommend certain types of transactions regarding certain","page_number":176,"box":{"x":116,"y":506,"width":697,"height":12}},{"id":"ff7630ea-5666-4822-a82d-91ad4e133f08","block_type":"box","text":"securities or instruments with respect to which BlackRock is performing services or when position limits","page_number":176,"box":{"x":116,"y":521,"width":771,"height":12}},{"id":"d86941fe-37d3-46de-9730-7b54c6ecc7e8","block_type":"box","text":"have been reached. For example, the investment activities of BlackRock for its proprietary accounts","page_number":176,"box":{"x":117,"y":537,"width":745,"height":12}},{"id":"9f65e840-bb0b-4d09-b74d-7b29193cbffa","block_type":"box","text":"and accounts under its management may limit the investment opportunities for a Fund in certain","page_number":176,"box":{"x":116,"y":552,"width":717,"height":12}},{"id":"65e55bb6-daa5-4230-a018-45ad24b09067","block_type":"box","text":"emerging and other markets in which limitations are imposed upon the amount of investment, in the","page_number":176,"box":{"x":116,"y":568,"width":744,"height":12}},{"id":"090a400e-5d2c-4ea2-b92a-b980c74ea383","block_type":"box","text":"aggregate or in individual issuers, by affiliated foreign investors.","page_number":176,"box":{"x":116,"y":583,"width":478,"height":12}},{"id":"0db1b69a-0ff4-45ff-a7ff-4b94b1f25ad9","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to certain fundamental","page_number":176,"box":{"x":117,"y":614,"width":733,"height":12}},{"id":"4657d2be-a2df-48cc-817d-be05d6c400be","block_type":"box","text":"analysis and proprietary technical models developed by BlackRock. BlackRock will not be under any","page_number":176,"box":{"x":116,"y":630,"width":750,"height":12}},{"id":"5a595547-aac9-422a-b73c-a21c0cde0401","block_type":"box","text":"obligation, however, to effect transactions on behalf of a Fund in accordance with such analysis and","page_number":176,"box":{"x":116,"y":645,"width":746,"height":12}},{"id":"8085c14f-dc68-420a-8c02-8e40de18536f","block_type":"box","text":"models. In addition, BlackRock will not have any obligation to make available any information regarding","page_number":176,"box":{"x":117,"y":661,"width":764,"height":12}},{"id":"cada15a7-0936-442a-b8ad-15e19221429f","block_type":"box","text":"its proprietary activities or strategies, or the activities or strategies used for other accounts managed by","page_number":176,"box":{"x":117,"y":676,"width":764,"height":12}},{"id":"13390fab-f759-438f-a618-9c192469d079","block_type":"box","text":"them, for the benefit of the management of a Fund and it is not anticipated that BlackRock will have","page_number":176,"box":{"x":116,"y":692,"width":738,"height":12}},{"id":"bcf951fa-51c3-4b28-a12b-34b6f2bbda15","block_type":"box","text":"access to such information for the purpose of managing the Fund. The proprietary activities or portfolio","page_number":176,"box":{"x":116,"y":707,"width":762,"height":12}},{"id":"02e9b178-7b1c-4ea4-9eb0-86ef3e299c9b","block_type":"box","text":"strategies of BlackRock, or the activities or strategies used for accounts managed by BlackRock or","page_number":176,"box":{"x":116,"y":723,"width":734,"height":12}},{"id":"64d61bca-fa5f-41d9-8e13-1133985ffc63","block_type":"box","text":"other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":176,"box":{"x":116,"y":738,"width":725,"height":12}},{"id":"a510ca3e-b280-4657-b1a8-c83f2aa5e33f","block_type":"box","text":"managing a Fund.","page_number":176,"box":{"x":117,"y":754,"width":133,"height":12}},{"id":"76f5f473-fcd2-498d-8dbb-7d4c9a99d66d","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and","page_number":176,"box":{"x":116,"y":785,"width":722,"height":12}},{"id":"6b4b4b39-01b9-4b6d-b77c-65714934db20","block_type":"box","text":"financial advisors. To the extent clients invest in these investment models and increase the assets","page_number":176,"box":{"x":116,"y":800,"width":728,"height":10}},{"id":"8bd9483b-967c-452b-9b65-1fc31d48a062","block_type":"box","text":"under management of the Funds, the investment management fee amounts paid by the Funds to","page_number":176,"box":{"x":117,"y":816,"width":719,"height":12}},{"id":"a8a092a1-3764-43c1-974c-51e45dd9f9c1","block_type":"box","text":"BlackRock may also increase. The net asset value and liquidity of a Fund may be impacted by","page_number":176,"box":{"x":117,"y":831,"width":704,"height":12}},{"id":"994f590d-622e-4ebe-aa1d-4e6d9c0892e0","block_type":"box","text":"purchases and sales of the Fund by model-driven investment portfolios, as well as by BlackRock itself","page_number":176,"box":{"x":117,"y":847,"width":760,"height":12}},{"id":"9bdaebed-2a61-4e1f-9dcc-2cd35b375361","block_type":"box","text":"and by its advisory clients.","page_number":176,"box":{"x":116,"y":862,"width":201,"height":12}},{"id":"5e8d3eb8-6b85-46c7-b695-cbe1876d04e7","block_type":"box","text":"II-117","page_number":176,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"5274b69c-58c3-4014-b6e8-7447d1933a1d","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":176,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8f31ef15-b301-42f5-975c-ab88a384fc99","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals","page_number":177,"box":{"x":117,"y":87,"width":764,"height":12}},{"id":"cd40e301-795a-4751-bac6-b56db5098d6d","block_type":"box","text":"or employees of other business units or entities within BlackRock. As a result, these principals and","page_number":177,"box":{"x":116,"y":102,"width":736,"height":13}},{"id":"48f9ae0e-b8e8-448b-a665-fe59d1f63e76","block_type":"box","text":"employees may have obligations to such other business units or entities or their clients and such","page_number":177,"box":{"x":116,"y":118,"width":722,"height":12}},{"id":"b83ef103-7fe9-4e1d-8852-1706d9ff2895","block_type":"box","text":"obligations to other business units or entities or their clients may be a consideration of which investors","page_number":177,"box":{"x":116,"y":134,"width":762,"height":12}},{"id":"3b91a3af-2751-482d-b6c2-86ffd248be8b","block_type":"box","text":"in a Fund should be aware.","page_number":177,"box":{"x":117,"y":149,"width":206,"height":10}},{"id":"b815989a-22a0-4873-9094-cc5f35c8b362","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of","page_number":177,"box":{"x":117,"y":180,"width":769,"height":12}},{"id":"13f59a00-eefe-4998-8d89-355370bd386e","block_type":"box","text":"a Fund in which clients of BlackRock, or, to the extent permitted by the Commission and applicable","page_number":177,"box":{"x":116,"y":196,"width":740,"height":12}},{"id":"a19f4723-5c94-4f40-90b3-0b6e53912213","block_type":"box","text":"law, BlackRock, serves as the counterparty, principal or issuer. In such cases, such party’s interests in","page_number":177,"box":{"x":117,"y":211,"width":764,"height":12}},{"id":"ca1df74d-b4d4-4dd4-88bd-0f12ee264dd2","block_type":"box","text":"the transaction will be adverse to the interests of the Fund, and such party may have no incentive to","page_number":177,"box":{"x":116,"y":227,"width":747,"height":12}},{"id":"fec7986f-7e2a-40eb-b3c5-4392cdb421fa","block_type":"box","text":"assure that the Fund obtains the best possible prices or terms in connection with the transactions. In","page_number":177,"box":{"x":116,"y":242,"width":750,"height":12}},{"id":"441db721-c193-4819-a0bd-e0c29448db79","block_type":"box","text":"addition, the purchase, holding and sale of such investments by a Fund may enhance the profitability","page_number":177,"box":{"x":116,"y":258,"width":754,"height":12}},{"id":"446ad23c-2a22-4a46-948e-34a19f2c8a6c","block_type":"box","text":"of BlackRock.","page_number":177,"box":{"x":116,"y":273,"width":107,"height":10}},{"id":"ba325c99-2be7-4681-a1bd-387326ee3ef1","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies","page_number":177,"box":{"x":117,"y":304,"width":755,"height":12}},{"id":"a2552594-e120-45ca-b9ec-f6f5cef86435","block_type":"box","text":"or instruments of which may be those in which a Fund invests or which may be based on the","page_number":177,"box":{"x":116,"y":320,"width":692,"height":12}},{"id":"a4a108f7-f7ba-4e2c-9bd8-5505c28d8960","block_type":"box","text":"performance of the Fund. Additionally, an affiliate of BlackRock will create, write or issue options,","page_number":177,"box":{"x":117,"y":335,"width":724,"height":12}},{"id":"c13a4560-d3c9-4d93-9616-02e80786c0fc","block_type":"box","text":"which may be based on the performance of certain Funds. BlackRock has entered into an arrangement","page_number":177,"box":{"x":116,"y":351,"width":772,"height":12}},{"id":"d205f4d6-e605-4e12-b203-41afd055a8fe","block_type":"box","text":"with Markit Indices Limited, the index provider for underlying fixed-income indexes used by certain","page_number":177,"box":{"x":116,"y":366,"width":733,"height":12}},{"id":"0c309ce6-e379-485d-ad10-0ce753729355","block_type":"box","text":"iShares ETFs, related to derivative fixed-income products that are based on such iShares ETFs.","page_number":177,"box":{"x":117,"y":382,"width":718,"height":12}},{"id":"d461fa11-aa95-4c55-a8dc-d6aeb4c6a129","block_type":"box","text":"Trading activity in these derivative products could also potentially lead to greater liquidity for such","page_number":177,"box":{"x":116,"y":397,"width":727,"height":12}},{"id":"6c662b2d-3447-42c9-80cc-f08f5ba603a8","block_type":"box","text":"products, increased purchase activity with respect to these iShares ETFs and increased assets under","page_number":177,"box":{"x":117,"y":413,"width":758,"height":12}},{"id":"6c071c95-e7cf-4092-93ae-947228f39a88","block_type":"box","text":"management for BlackRock.","page_number":177,"box":{"x":117,"y":428,"width":215,"height":12}},{"id":"2d61d960-5fcc-4ecd-a63f-96b726e8b2bc","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or","page_number":177,"box":{"x":116,"y":459,"width":766,"height":12}},{"id":"bc2e7732-8115-4447-afe6-715d51bcc2e8","block_type":"box","text":"other distribution by BlackRock and may also enter into transactions with other clients of BlackRock","page_number":177,"box":{"x":116,"y":475,"width":744,"height":12}},{"id":"a886dc6b-768a-4b7b-a5b3-44d384f620ba","block_type":"box","text":"where such other clients have interests adverse to those of the Fund. At times, these activities may","page_number":177,"box":{"x":116,"y":490,"width":741,"height":12}},{"id":"d7845cfd-039b-44b4-b064-e3eaca385535","block_type":"box","text":"cause business units or entities within BlackRock to give advice to clients that may cause these clients","page_number":177,"box":{"x":116,"y":506,"width":766,"height":12}},{"id":"d2747f64-0a7f-4423-ba51-6f3d23c0a1ba","block_type":"box","text":"to take actions adverse to the interests of the Fund. To the extent such transactions are permitted, a","page_number":177,"box":{"x":116,"y":521,"width":749,"height":12}},{"id":"19e533a0-03b0-42a0-913d-0f24409470aa","block_type":"box","text":"Fund will deal with BlackRock on an arms-length basis.","page_number":177,"box":{"x":117,"y":537,"width":414,"height":12}},{"id":"9b39af89-6748-4325-a54c-03e39101dbf7","block_type":"box","text":"To the extent authorized by applicable law, BlackRock may act as broker, dealer, agent, lender or","page_number":177,"box":{"x":116,"y":568,"width":729,"height":12}},{"id":"a893be86-c3d7-4747-bb1a-50706b1fbfe0","block_type":"box","text":"adviser or in other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups,","page_number":177,"box":{"x":116,"y":583,"width":760,"height":12}},{"id":"113d6027-089f-4306-b926-f5d95a813f63","block_type":"box","text":"mark-downs, financial advisory fees, underwriting and placement fees, sales fees, financing and","page_number":177,"box":{"x":117,"y":599,"width":717,"height":12}},{"id":"38f2f751-14a1-4bc7-a994-1104381d5db5","block_type":"box","text":"commitment fees, brokerage fees, other fees, compensation or profits, rates, terms and conditions","page_number":177,"box":{"x":116,"y":614,"width":735,"height":12}},{"id":"8b53d386-365f-4388-88db-42d9f5e144e8","block_type":"box","text":"charged by BlackRock will be in its view commercially reasonable, although BlackRock, including its","page_number":177,"box":{"x":116,"y":630,"width":747,"height":12}},{"id":"fa1d2fa3-8d5e-484a-b49a-6221d8cbddf4","block_type":"box","text":"sales personnel, will have an interest in obtaining fees and other amounts that are favorable to","page_number":177,"box":{"x":116,"y":645,"width":706,"height":12}},{"id":"40c6beaa-c123-48c4-acee-901112017377","block_type":"box","text":"BlackRock and such sales personnel, which may have an adverse effect on the Funds. Index based","page_number":177,"box":{"x":117,"y":661,"width":740,"height":12}},{"id":"dd193bca-0c0e-425b-84a4-28004c011c33","block_type":"box","text":"funds may use an index provider that is affiliated with another service provider of the Fund or","page_number":177,"box":{"x":116,"y":676,"width":690,"height":12}},{"id":"7cfa0914-89df-4b4b-96dc-8ac0b2adde4c","block_type":"box","text":"BlackRock that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or","page_number":177,"box":{"x":117,"y":692,"width":751,"height":12}},{"id":"f777a855-edc5-4dd0-b2c1-186de2f5b7a9","block_type":"box","text":"BlackRock.","page_number":177,"box":{"x":117,"y":707,"width":81,"height":10}},{"id":"eb83d30f-f7d4-482e-9858-0a42df5fad17","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain","page_number":177,"box":{"x":116,"y":738,"width":755,"height":12}},{"id":"53d66b50-e1f2-420e-acee-b2cb90c039e9","block_type":"box","text":"fees and other amounts that they receive in connection with their service to the Funds as broker,","page_number":177,"box":{"x":116,"y":754,"width":715,"height":12}},{"id":"0a6c3994-65cb-4a32-838e-2fdbae7d37b1","block_type":"box","text":"dealer, agent, lender, adviser or in other commercial capacities. No accounting to the Funds or their","page_number":177,"box":{"x":116,"y":769,"width":741,"height":12}},{"id":"ad5ca221-500e-434b-ae14-41325c16ea4a","block_type":"box","text":"shareholders will be required, and no fees or other compensation payable by the Funds or their","page_number":177,"box":{"x":116,"y":785,"width":707,"height":12}},{"id":"2b34f15e-81ca-4987-acd0-be3409526a97","block_type":"box","text":"shareholders will be reduced by reason of receipt by BlackRock of any such fees or other amounts.","page_number":177,"box":{"x":116,"y":800,"width":735,"height":12}},{"id":"f505dd50-70c7-4ce8-9f0e-0166ece06f6e","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to","page_number":177,"box":{"x":116,"y":831,"width":761,"height":12}},{"id":"d286a7ce-5940-4383-b8c5-462c82f96ba8","block_type":"box","text":"the Funds, BlackRock may take commercial steps in its own interests, which may have an adverse","page_number":177,"box":{"x":116,"y":847,"width":738,"height":12}},{"id":"622b8ff4-4005-4aed-a3fc-258758e5d6ae","block_type":"box","text":"effect on the Funds.","page_number":177,"box":{"x":116,"y":862,"width":153,"height":10}},{"id":"991e3d18-9ee4-4678-bd11-42875b820666","block_type":"box","text":"II-118","page_number":177,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"f65253d6-e7fa-4cda-8fac-39bd1926767c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":177,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9b9cb560-2e38-48c0-b2f0-084a508cdb11","block_type":"box","text":"A Fund will be required to establish business relationships with its counterparties based on the Fund’s","page_number":178,"box":{"x":116,"y":87,"width":761,"height":12}},{"id":"1b4eacb2-b9b7-477f-9bd5-52560beebde8","block_type":"box","text":"own credit standing. BlackRock will not have any obligation to allow its credit to be used in connection","page_number":178,"box":{"x":116,"y":103,"width":760,"height":12}},{"id":"9bc5728e-c091-4fea-b108-52c27d0ec6cb","block_type":"box","text":"with a Fund’s establishment of its business relationships, nor is it expected that the Fund’s","page_number":178,"box":{"x":116,"y":118,"width":675,"height":12}},{"id":"d1de662d-67f4-4fa7-a1da-7128ac804927","block_type":"box","text":"counterparties will rely on the credit of BlackRock in evaluating the Fund’s creditworthiness.","page_number":178,"box":{"x":116,"y":134,"width":684,"height":12}},{"id":"f30f5906-660e-4abe-9ec2-7c8c2a472e63","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A.","page_number":178,"box":{"x":117,"y":165,"width":726,"height":12}},{"id":"63ca60ff-3ec4-4266-91ad-017d1c6252d3","block_type":"box","text":"(“BTC”), as applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as","page_number":178,"box":{"x":117,"y":180,"width":715,"height":12}},{"id":"53699413-b5c1-4edd-89f2-d75506b40dfe","block_type":"box","text":"securities lending agent to, and receives a share of securities lending revenues from, the Funds.","page_number":178,"box":{"x":116,"y":196,"width":720,"height":12}},{"id":"cc348a45-6f5e-4705-9635-72d9a86f2677","block_type":"box","text":"BlackRock will also receive compensation for managing the reinvestment of the cash collateral from","page_number":178,"box":{"x":117,"y":211,"width":744,"height":12}},{"id":"b504b3f4-ce5c-4343-96c7-dd5d3f590c06","block_type":"box","text":"securities lending. There are potential conflicts of interests in managing a securities lending program,","page_number":178,"box":{"x":116,"y":227,"width":755,"height":12}},{"id":"3242a135-31c8-4e64-809e-eb3a6cda188e","block_type":"box","text":"including but not limited to: (i) BlackRock as securities lending agent may have an incentive to, among","page_number":178,"box":{"x":117,"y":242,"width":762,"height":12}},{"id":"65551f53-8c36-457a-aae1-356065c37bb7","block_type":"box","text":"other things, increase or decrease the amount of securities on loan or to lend particular securities in","page_number":178,"box":{"x":116,"y":258,"width":745,"height":12}},{"id":"d57ed605-d8ff-454f-bc53-6380326ef7d7","block_type":"box","text":"order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock","page_number":178,"box":{"x":116,"y":273,"width":750,"height":12}},{"id":"b3cec419-d611-404a-b0de-aeb4ca947a59","block_type":"box","text":"as securities lending agent may have an incentive to allocate loans to clients that would provide more","page_number":178,"box":{"x":116,"y":289,"width":757,"height":12}},{"id":"110fe8a6-c654-4005-a989-492a4395d89b","block_type":"box","text":"revenue to BlackRock. As described further below, BlackRock seeks to mitigate this conflict by","page_number":178,"box":{"x":117,"y":304,"width":706,"height":12}},{"id":"7b66b791-9f59-4480-af8f-7bc8ab6a08d4","block_type":"box","text":"providing its securities lending clients with equal lending opportunities over time in order to","page_number":178,"box":{"x":117,"y":320,"width":675,"height":12}},{"id":"6bf3f3b0-7a48-4c72-8666-5c26bac4d95b","block_type":"box","text":"approximate pro rata allocation.","page_number":178,"box":{"x":116,"y":335,"width":240,"height":12}},{"id":"0002beb4-c3ed-40a8-8ad2-af405816058e","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients","page_number":178,"box":{"x":116,"y":366,"width":742,"height":12}},{"id":"274d9408-b8b9-459e-aa2e-ff8d710876c4","block_type":"box","text":"and/or funds against a shortfall in collateral in the event of borrower default. 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BlackRock","page_number":178,"box":{"x":117,"y":428,"width":711,"height":12}},{"id":"e392c8ce-8ce6-4b00-9918-db44d0088310","block_type":"box","text":"oversees the risk model that calculates projected collateral shortfall values using loan-level factors","page_number":178,"box":{"x":116,"y":444,"width":734,"height":12}},{"id":"c3f802a1-9561-4175-8123-2a8b033bf08d","block_type":"box","text":"such as loan and collateral type and market value as well as specific borrower credit characteristics.","page_number":178,"box":{"x":116,"y":459,"width":747,"height":12}},{"id":"25eb818c-b8b4-4791-bd60-6732f4e0fa26","block_type":"box","text":"When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":178,"box":{"x":116,"y":475,"width":738,"height":12}},{"id":"4221a9e7-925a-4a65-98c1-e258fb336316","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as","page_number":178,"box":{"x":116,"y":490,"width":768,"height":12}},{"id":"e097d9f0-33d3-453e-bad9-c719d78b4d22","block_type":"box","text":"well as BlackRock-specific indemnification exposure may affect the amount of securities lending","page_number":178,"box":{"x":116,"y":506,"width":717,"height":12}},{"id":"4988d353-b1b3-46e6-916e-1c5fcd7acea0","block_type":"box","text":"activity BlackRock may conduct at any given point in time by reducing the volume of lending","page_number":178,"box":{"x":116,"y":521,"width":687,"height":12}},{"id":"c7edbcf7-2071-45a6-8730-78a6cd28e82f","block_type":"box","text":"opportunities for certain loans (including by asset type, collateral type and/or revenue profile).","page_number":178,"box":{"x":116,"y":537,"width":698,"height":12}},{"id":"9e877a32-ed06-4e25-bca3-862b1ae66815","block_type":"box","text":"BlackRock may decline to make a securities loan on behalf of a Fund, discontinue lending on behalf of","page_number":178,"box":{"x":117,"y":568,"width":764,"height":12}},{"id":"c6ead275-48ae-4f95-a963-fac3802b9c6f","block_type":"box","text":"a Fund or terminate a securities loan on behalf of a Fund for any reason, including but not limited to","page_number":178,"box":{"x":116,"y":583,"width":744,"height":12}},{"id":"e23c138b-7a6b-4e48-818e-dfc9f391e28f","block_type":"box","text":"regulatory requirements and/or market rules, liquidity considerations, or credit considerations, which","page_number":178,"box":{"x":117,"y":599,"width":745,"height":12}},{"id":"67ea9604-1b69-4c83-a0e5-cb8464479cb1","block_type":"box","text":"may impact Funds by reducing or eliminating the volume of lending opportunities for certain types of","page_number":178,"box":{"x":117,"y":614,"width":746,"height":12}},{"id":"be7f5a8c-99fa-404e-8674-4f894fe65ec0","block_type":"box","text":"loans, loans in particular markets, loans of particular securities or types of securities, or for loans","page_number":178,"box":{"x":117,"y":630,"width":720,"height":12}},{"id":"29f8c465-fe30-41b7-9b92-1e4f1165a735","block_type":"box","text":"overall. In addition, some borrowers may prefer certain BlackRock lenders that provide additional","page_number":178,"box":{"x":116,"y":645,"width":725,"height":12}},{"id":"946c6a27-65fd-43a9-9e8c-d8e2c1a9d50d","block_type":"box","text":"protections against lender default that are favored by their prudential regulation.","page_number":178,"box":{"x":117,"y":661,"width":590,"height":12}},{"id":"8550141d-dd0e-44f0-9a3a-03dcad6a374e","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over","page_number":178,"box":{"x":117,"y":692,"width":747,"height":12}},{"id":"875035d8-7c44-4a0d-ba2c-0714eef23218","block_type":"box","text":"time. In order to allocate a loan to a portfolio: (i) BlackRock as a whole must have sufficient lending","page_number":178,"box":{"x":116,"y":707,"width":733,"height":12}},{"id":"dd781386-cf54-47b0-99c8-877e88424e79","block_type":"box","text":"capacity pursuant to the various program limits (i.e. indemnification exposure limit and borrower credit","page_number":178,"box":{"x":116,"y":723,"width":756,"height":12}},{"id":"2174d5ef-2487-4439-92cf-0b61cfab156a","block_type":"box","text":"limits); (ii) the lending portfolio must hold the asset at the time a loan opportunity arrives; and (iii) the","page_number":178,"box":{"x":117,"y":738,"width":742,"height":12}},{"id":"4098ba17-edee-4b50-bdf7-659c06fff925","block_type":"box","text":"lending portfolio must also have enough inventory, either on its own or when aggregated with other","page_number":178,"box":{"x":117,"y":754,"width":733,"height":12}},{"id":"11b771f9-b01b-41d7-a1b4-91cb56000bc5","block_type":"box","text":"portfolios into one single market delivery, to satisfy the loan request. In doing so, BlackRock seeks to","page_number":178,"box":{"x":117,"y":769,"width":748,"height":12}},{"id":"dfa80a93-7c04-4bbe-910f-56c2a4aa445d","block_type":"box","text":"provide equal lending opportunities for all portfolios, independent of whether BlackRock indemnifies the","page_number":178,"box":{"x":117,"y":785,"width":765,"height":12}},{"id":"c0e8c193-0a08-42cb-a06d-4b0df18fe978","block_type":"box","text":"portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes. Specifically,","page_number":178,"box":{"x":117,"y":800,"width":738,"height":12}},{"id":"2aa679da-08bf-4967-8f4a-cdb28424a3de","block_type":"box","text":"short and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads","page_number":178,"box":{"x":116,"y":816,"width":744,"height":12}},{"id":"35b9ef05-ed23-478c-b31d-cd1a0bcc1fb5","block_type":"box","text":"on different securities, and the overall limits imposed by the firm.","page_number":178,"box":{"x":116,"y":831,"width":483,"height":12}},{"id":"ad85c39c-055e-4e74-9012-89d8b6393e21","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":178,"box":{"x":117,"y":862,"width":769,"height":12}},{"id":"7f490d15-c78d-4cf4-80b1-7c4de8a7b266","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the","page_number":178,"box":{"x":117,"y":878,"width":770,"height":12}},{"id":"ec88151f-7ad8-4400-9fa9-8676babd0219","block_type":"box","text":"II-119","page_number":178,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"0d972f5f-d1c3-496e-afdf-e00d43be6ecc","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":178,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"95b3ff9e-dfa5-4e00-aecc-c7863963bb6d","block_type":"box","text":"fact that they have different research payment arrangements. BlackRock, however, is not required to","page_number":179,"box":{"x":116,"y":87,"width":752,"height":12}},{"id":"4637ee51-0261-4153-80a0-5e59d1ce6345","block_type":"box","text":"aggregate orders if portfolio management decisions for different accounts are made separately, or if","page_number":179,"box":{"x":116,"y":102,"width":746,"height":13}},{"id":"6dd63cd4-6a69-446b-bbe5-d2901f151491","block_type":"box","text":"they determine that aggregating is not practicable or required, or in cases involving client direction.","page_number":179,"box":{"x":116,"y":118,"width":737,"height":12}},{"id":"f70657bb-8530-4fd7-99b1-b749976bbab1","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution","page_number":179,"box":{"x":117,"y":146,"width":748,"height":12}},{"id":"8ef05a4b-6f69-4b65-ba68-f7f54b22b73a","block_type":"box","text":"on the entire volume of securities purchased or sold. When this occurs, the various prices may be","page_number":179,"box":{"x":116,"y":162,"width":730,"height":12}},{"id":"239190e9-c5e9-44c7-9cde-69ec47f60c0a","block_type":"box","text":"averaged, and the Funds will be charged or credited with the average price. Thus, the effect of the","page_number":179,"box":{"x":116,"y":177,"width":734,"height":12}},{"id":"d65a0fb3-5cd8-4943-9aa9-67c1a4d6813a","block_type":"box","text":"aggregation may operate on some occasions to the disadvantage of the Funds. In addition, under","page_number":179,"box":{"x":116,"y":193,"width":730,"height":12}},{"id":"f342c920-9daf-471d-86d4-a873e9ae7169","block_type":"box","text":"certain circumstances, the Funds will not be charged the same commission or commission equivalent","page_number":179,"box":{"x":116,"y":209,"width":759,"height":11}},{"id":"fe867d96-2e37-4dc0-98bd-102e12cd102c","block_type":"box","text":"rates in connection with an aggregated order.","page_number":179,"box":{"x":117,"y":224,"width":341,"height":12}},{"id":"d091b1cf-b53d-4fd7-ac37-95c8545ce474","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage — Transactions in","page_number":179,"box":{"x":116,"y":252,"width":743,"height":12}},{"id":"4875f9a6-2093-4f8f-b5df-d8b100683a68","block_type":"box","text":"Portfolio Securities,” BlackRock, unless prohibited by applicable law, may cause a Fund or account to","page_number":179,"box":{"x":117,"y":268,"width":757,"height":12}},{"id":"dd8a158c-db22-498f-8a11-d7d8d67e4c77","block_type":"box","text":"pay a broker or dealer a commission for effecting a transaction that exceeds the amount another","page_number":179,"box":{"x":117,"y":283,"width":720,"height":12}},{"id":"81504376-ebc4-4de2-b165-f367ad450b82","block_type":"box","text":"broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":179,"box":{"x":117,"y":299,"width":746,"height":12}},{"id":"ca49c174-484b-4613-85f0-944174b612f1","block_type":"box","text":"brokerage and research services provided by that broker or dealer. Under MiFID II, EU investment","page_number":179,"box":{"x":117,"y":314,"width":734,"height":12}},{"id":"014e8e61-090d-4b47-bfb4-fd455edd9c44","block_type":"box","text":"managers, including BlackRock International Limited (“BIL”) which acts as a sub-adviser to certain","page_number":179,"box":{"x":117,"y":330,"width":732,"height":12}},{"id":"c8aea79c-7529-4d24-9b8b-1e59703568c6","block_type":"box","text":"Funds, pay for research from brokers and dealers directly out of their own resources, rather than","page_number":179,"box":{"x":117,"y":345,"width":721,"height":12}},{"id":"0b125f33-0962-4ce1-8006-2a6a07ccaa55","block_type":"box","text":"through client commissions.","page_number":179,"box":{"x":116,"y":361,"width":212,"height":12}},{"id":"b5b7dbea-5106-4136-91f6-6e4d78077c4b","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other","page_number":179,"box":{"x":116,"y":389,"width":728,"height":12}},{"id":"5ed6c321-ca6c-4410-b6e2-a5163a1f8daa","block_type":"box","text":"BlackRock client accounts or personnel, directly or through correspondent relationships, with research","page_number":179,"box":{"x":117,"y":405,"width":762,"height":12}},{"id":"3b4ef727-a74b-4846-8939-03489efe6d4d","block_type":"box","text":"or other appropriate services which provide, in BlackRock’s view, appropriate assistance to BlackRock","page_number":179,"box":{"x":116,"y":420,"width":765,"height":12}},{"id":"8b4c0541-a50f-481e-9748-cfaf6a6c5876","block_type":"box","text":"in the investment decision-making process (including with respect to futures, fixed-price offerings and","page_number":179,"box":{"x":117,"y":436,"width":756,"height":12}},{"id":"611a0802-1c7d-404e-a670-4e1e1e4652e0","block_type":"box","text":"OTC transactions). Such research or other services may include, to the extent permitted by law,","page_number":179,"box":{"x":116,"y":451,"width":717,"height":12}},{"id":"6803a7b4-7e6a-4a2d-8791-f456261edfce","block_type":"box","text":"research reports on companies, industries and securities; economic and financial data; financial","page_number":179,"box":{"x":117,"y":467,"width":714,"height":12}},{"id":"8309b6be-99d9-4ae1-a211-cf0115b0f5f2","block_type":"box","text":"publications; proxy analysis; trade industry seminars; computer data bases; research-oriented software","page_number":179,"box":{"x":117,"y":482,"width":769,"height":12}},{"id":"0a178128-999c-4343-b0ec-d8a331bf0eeb","block_type":"box","text":"and other services and products.","page_number":179,"box":{"x":116,"y":498,"width":249,"height":12}},{"id":"723f09cd-6f75-4a78-8b99-404d8ead9a88","block_type":"box","text":"Research or other services obtained in this manner may be used in servicing any or all of the Funds","page_number":179,"box":{"x":117,"y":526,"width":745,"height":12}},{"id":"49034078-4d79-499e-8d02-d43d4dbae16a","block_type":"box","text":"and other BlackRock client accounts, including in connection with BlackRock client accounts other than","page_number":179,"box":{"x":116,"y":542,"width":770,"height":12}},{"id":"316d97f8-f5e9-4714-8d84-58740307c1c4","block_type":"box","text":"those that pay commissions to the broker relating to the research or other service arrangements. Such","page_number":179,"box":{"x":116,"y":557,"width":766,"height":12}},{"id":"957147b2-8638-492a-9112-dc4f49f6de4c","block_type":"box","text":"products and services may disproportionately benefit other BlackRock client accounts relative to the","page_number":179,"box":{"x":117,"y":573,"width":745,"height":12}},{"id":"9454024b-9220-4d7e-b1a7-71d011c69948","block_type":"box","text":"Funds based on the amount of brokerage commissions paid by the Funds and such other BlackRock","page_number":179,"box":{"x":117,"y":588,"width":753,"height":12}},{"id":"df2a7dd6-9363-4323-b730-24c28e645123","block_type":"box","text":"client accounts. For example, research or other services that are paid for through one client’s","page_number":179,"box":{"x":116,"y":604,"width":696,"height":12}},{"id":"f72aa22a-8d1b-4d1c-9b3b-881e64a1fec8","block_type":"box","text":"commissions may not be used in managing that client’s account. In addition, other BlackRock client","page_number":179,"box":{"x":116,"y":619,"width":743,"height":12}},{"id":"cbd9b359-86e5-445e-964e-f048ae8a3caa","block_type":"box","text":"accounts may receive the benefit, including disproportionate benefits, of economies of scale or price","page_number":179,"box":{"x":116,"y":635,"width":748,"height":12}},{"id":"ab07b10c-4a9d-4d5d-9b9d-e8fefcffb08a","block_type":"box","text":"discounts in connection with products and services that may be provided to the Funds and to such","page_number":179,"box":{"x":116,"y":650,"width":734,"height":12}},{"id":"478c3d9d-39dd-4b41-b241-2020aabc66fc","block_type":"box","text":"other BlackRock client accounts. To the extent that BlackRock uses soft dollars, it will not have to pay","page_number":179,"box":{"x":116,"y":666,"width":755,"height":12}},{"id":"17eef783-5edc-4a64-8118-ddc37e9b9f4a","block_type":"box","text":"for those products and services itself.","page_number":179,"box":{"x":116,"y":681,"width":276,"height":12}},{"id":"14f7d7b9-df7d-4fa4-8580-dc7eb497cdc0","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who,","page_number":179,"box":{"x":117,"y":710,"width":759,"height":12}},{"id":"03d4e5ff-337d-49ec-9e83-736fce3666f9","block_type":"box","text":"pursuant to such arrangements, provide research or other services in order to ensure the continued","page_number":179,"box":{"x":117,"y":725,"width":737,"height":12}},{"id":"9edbdc5d-dfa8-467e-8abc-6738f27c8b0e","block_type":"box","text":"receipt of research or other services BlackRock believes are useful in its investment decision-making","page_number":179,"box":{"x":117,"y":740,"width":747,"height":13}},{"id":"313a9dad-d488-4cc3-a78a-b1e1ad2f50b6","block_type":"box","text":"process. BlackRock may from time to time choose not to engage in the above described arrangements","page_number":179,"box":{"x":117,"y":756,"width":762,"height":12}},{"id":"b4ec93ac-dfe5-4f80-bc44-4e675edf28d0","block_type":"box","text":"to varying degrees. BlackRock, unless prohibited by applicable law, may also enter into commission","page_number":179,"box":{"x":116,"y":772,"width":740,"height":12}},{"id":"f0ecb73a-e978-4f82-9f4e-4d186cb6ffaf","block_type":"box","text":"sharing arrangements under which BlackRock may execute transactions through a broker-dealer and","page_number":179,"box":{"x":116,"y":787,"width":751,"height":12}},{"id":"8b47d235-d00b-4765-b125-e63330878f4c","block_type":"box","text":"request that the broker-dealer allocate a portion of the commissions or commission credits to another","page_number":179,"box":{"x":117,"y":802,"width":750,"height":12}},{"id":"78f2300d-6ee8-443e-8ddb-c3bc489f40ca","block_type":"box","text":"firm that provides research to BlackRock. To the extent that BlackRock engages in commission sharing","page_number":179,"box":{"x":116,"y":818,"width":766,"height":12}},{"id":"3f472626-dc6d-44fc-b7bd-d10bb82adb69","block_type":"box","text":"arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":179,"box":{"x":116,"y":833,"width":636,"height":13}},{"id":"7aaba5aa-3248-4b05-a387-caaf4e3954b8","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation,","page_number":179,"box":{"x":117,"y":862,"width":724,"height":12}},{"id":"efc4c40b-d2c1-48bc-878f-e9f333d42ae2","block_type":"box","text":"ECNs in which BlackRock has an investment or other interest, to the extent permitted by applicable","page_number":179,"box":{"x":117,"y":877,"width":741,"height":12}},{"id":"f5bf0e90-6b00-472c-b955-bc33e05043ab","block_type":"box","text":"II-120","page_number":179,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"ebcd760b-389f-477c-89ff-8180f9b59502","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":179,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b2bbaf08-396f-46bd-a14c-e9441b6fda47","block_type":"box","text":"law) in executing client securities transactions for certain types of securities. These ECNs may charge","page_number":180,"box":{"x":117,"y":87,"width":760,"height":12}},{"id":"2de63533-cdc6-496f-82b1-f67fa5acb36c","block_type":"box","text":"fees for their services, including access fees and transaction fees. The transaction fees, which are","page_number":180,"box":{"x":116,"y":102,"width":733,"height":13}},{"id":"acd616dd-6cef-4d56-a6ed-92739288000f","block_type":"box","text":"similar to commissions or markups/markdowns, will generally be charged to clients and, like","page_number":180,"box":{"x":116,"y":118,"width":686,"height":12}},{"id":"dbadd30f-3bec-4a99-a0c2-2d2d02aac7d5","block_type":"box","text":"commissions and markups/markdowns, would generally be included in the cost of the securities","page_number":180,"box":{"x":116,"y":134,"width":715,"height":12}},{"id":"22f66a31-3793-4cde-8623-fbd939f3579c","block_type":"box","text":"purchased. Access fees may be paid by BlackRock even though incurred in connection with executing","page_number":180,"box":{"x":117,"y":149,"width":763,"height":12}},{"id":"ffc10381-625d-4581-952b-28fb7a8ccb72","block_type":"box","text":"transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer","page_number":180,"box":{"x":116,"y":165,"width":715,"height":12}},{"id":"ed4192bd-bc03-4cb3-8639-284773f61021","block_type":"box","text":"volume discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only","page_number":180,"box":{"x":116,"y":180,"width":733,"height":12}},{"id":"b735f7b1-2593-41c9-8d71-ccd9eefd2127","block_type":"box","text":"utilize ECNs consistent with its obligation to seek to obtain best execution in client transactions.","page_number":180,"box":{"x":117,"y":196,"width":711,"height":12}},{"id":"13f682f1-210e-45fe-a952-996d9f965e61","block_type":"box","text":"BlackRock owns a minority interest in, and is a member of, Members Exchange (“MEMX”), a newly","page_number":180,"box":{"x":117,"y":227,"width":739,"height":12}},{"id":"92258b35-a29e-4761-945d-2cae98513d01","block_type":"box","text":"created U.S. stock exchange. Transactions for a Fund may be executed on MEMX if third party brokers","page_number":180,"box":{"x":116,"y":242,"width":772,"height":12}},{"id":"e946e9c0-3cf8-44f7-b7c8-8c07323177bf","block_type":"box","text":"select MEMX as the appropriate venue for execution of orders placed by BlackRock traders on behalf","page_number":180,"box":{"x":116,"y":258,"width":759,"height":12}},{"id":"120ce58b-4a86-45b5-a414-e24555fe29f2","block_type":"box","text":"of client portfolios.","page_number":180,"box":{"x":116,"y":273,"width":140,"height":12}},{"id":"f4abc91f-0565-4769-a57b-01d582dd3f8f","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from","page_number":180,"box":{"x":117,"y":304,"width":697,"height":12}},{"id":"4e429e87-7c20-400a-ad6a-0ea97980d246","block_type":"box","text":"influencing proxy voting decisions that it makes on behalf of advisory clients, including the Funds, and","page_number":180,"box":{"x":117,"y":320,"width":759,"height":12}},{"id":"8dad3326-71e0-4637-9698-e2c1e455b0ba","block_type":"box","text":"to help ensure that such decisions are made in accordance with BlackRock’s fiduciary obligations to its","page_number":180,"box":{"x":116,"y":335,"width":768,"height":12}},{"id":"0f9e2bf3-742e-4f44-a72e-3919f6d799d0","block_type":"box","text":"clients. Nevertheless, notwithstanding such proxy voting policies and procedures, actual proxy voting","page_number":180,"box":{"x":116,"y":351,"width":754,"height":12}},{"id":"807b48a6-c8eb-441e-8ac9-f26a0a63e772","block_type":"box","text":"decisions of BlackRock may have the effect of favoring the interests of other clients or businesses of","page_number":180,"box":{"x":116,"y":366,"width":750,"height":12}},{"id":"938ab3de-7156-431c-9762-393fb0e189f4","block_type":"box","text":"other divisions or units of BlackRock, provided that BlackRock believes such voting decisions to be in","page_number":180,"box":{"x":116,"y":382,"width":756,"height":12}},{"id":"da845fc6-c1b5-4474-9d68-68c8bfc14323","block_type":"box","text":"accordance with its fiduciary obligations. For a more detailed discussion of these policies and","page_number":180,"box":{"x":116,"y":397,"width":696,"height":12}},{"id":"94c79d67-3760-4faa-9914-edc23362aee1","block_type":"box","text":"procedures, see “Proxy Voting Policies and Procedures.”","page_number":180,"box":{"x":117,"y":413,"width":426,"height":12}},{"id":"7310f31f-26a8-4df4-9232-4976cc02678f","block_type":"box","text":"It is also possible that, from time to time, BlackRock and/or its advisory clients (including other funds","page_number":180,"box":{"x":117,"y":444,"width":747,"height":12}},{"id":"045f8557-4d3c-4302-a993-a07ac37a4238","block_type":"box","text":"and separately managed accounts) may, subject to compliance with applicable law, purchase and hold","page_number":180,"box":{"x":116,"y":459,"width":768,"height":12}},{"id":"dfef767b-6094-4e4f-87c8-4e626b5d4f59","block_type":"box","text":"shares of a Fund. Increasing a Fund’s assets may enhance investment flexibility and diversification","page_number":180,"box":{"x":116,"y":475,"width":740,"height":12}},{"id":"d993c9d8-952a-4fd8-8173-ed5162b65023","block_type":"box","text":"and may contribute to economies of scale that tend to reduce the Fund’s expense ratio. BlackRock","page_number":180,"box":{"x":116,"y":490,"width":738,"height":12}},{"id":"6e8f710a-1aa6-416f-b13f-9a4f77cf70cc","block_type":"box","text":"reserves the right, subject to compliance with applicable law, to redeem at any time some or all of the","page_number":180,"box":{"x":117,"y":506,"width":756,"height":12}},{"id":"111d1839-e452-4a69-8cd5-fc332d2fdb20","block_type":"box","text":"shares of a Fund acquired for its own accounts. A large redemption of shares of a Fund by BlackRock","page_number":180,"box":{"x":116,"y":521,"width":762,"height":12}},{"id":"df23e193-ee8f-41c0-9ac8-c3be71fc42c5","block_type":"box","text":"could significantly reduce the asset size of the Fund, which might have an adverse effect on the Fund’s","page_number":180,"box":{"x":116,"y":537,"width":770,"height":12}},{"id":"91d2b67a-9f31-460f-aff1-d05c2a6c9805","block_type":"box","text":"investment flexibility, portfolio diversification and expense ratio. BlackRock seeks to consider the effect","page_number":180,"box":{"x":117,"y":552,"width":766,"height":12}},{"id":"a05b6df7-9f66-4c01-b396-58e46f09c104","block_type":"box","text":"of redemptions on a Fund and other shareholders in deciding whether to redeem its shares but is not","page_number":180,"box":{"x":116,"y":568,"width":754,"height":12}},{"id":"92d9312d-6705-4b6d-8889-31995c91e1e8","block_type":"box","text":"obligated to do so and may elect not to do so.","page_number":180,"box":{"x":116,"y":583,"width":344,"height":12}},{"id":"ed338383-4eea-4ba0-8fe8-3dad5fccd2fa","block_type":"box","text":"It is possible that a Fund may invest in securities of, or engage in transactions with, companies in","page_number":180,"box":{"x":117,"y":614,"width":725,"height":12}},{"id":"0b6eb9a9-c596-4dda-8d38-ff3dc4735351","block_type":"box","text":"which BlackRock has significant debt or equity investments or other interests. A Fund may also invest","page_number":180,"box":{"x":116,"y":630,"width":759,"height":12}},{"id":"a073968a-83f5-488f-a587-38590814ee98","block_type":"box","text":"in issuances (such as structured notes) by entities for which BlackRock provides and is compensated","page_number":180,"box":{"x":117,"y":645,"width":756,"height":12}},{"id":"52d42695-bf48-496a-85f8-0aed83ec4808","block_type":"box","text":"for cash management services relating to the proceeds from the sale of such issuances. In making","page_number":180,"box":{"x":116,"y":661,"width":732,"height":12}},{"id":"7c383ac9-26f5-4eef-86f3-8a2b0d2660fd","block_type":"box","text":"investment decisions for a Fund, BlackRock is not permitted to obtain or use material non-public","page_number":180,"box":{"x":117,"y":676,"width":713,"height":12}},{"id":"b9f1be65-3836-4d09-b630-88ea0449ec1d","block_type":"box","text":"information acquired by any unit of BlackRock, in the course of these activities. In addition, from time to","page_number":180,"box":{"x":117,"y":692,"width":765,"height":12}},{"id":"c9375871-b90c-4dc9-a735-76fe6e2cfc47","block_type":"box","text":"time, the activities of BlackRock may limit a Fund’s flexibility in purchases and sales of securities. As","page_number":180,"box":{"x":116,"y":707,"width":745,"height":12}},{"id":"6b4f9b07-4d22-4e95-bbc1-827c06737c3f","block_type":"box","text":"indicated below, BlackRock may engage in transactions with companies in which BlackRock-advised","page_number":180,"box":{"x":117,"y":723,"width":747,"height":12}},{"id":"07c7d848-7d0b-43c2-a8de-6c5565040d38","block_type":"box","text":"funds or other clients of BlackRock have an investment.","page_number":180,"box":{"x":116,"y":738,"width":413,"height":10}},{"id":"53366979-f17c-4598-82ae-1019bb178e1a","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting","page_number":180,"box":{"x":117,"y":769,"width":727,"height":12}},{"id":"933f035e-007f-47cc-abab-c0623dc25905","block_type":"box","text":"sales of the Funds. 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BlackRock and its sales personnel may directly or indirectly receive a portion of the fees and","page_number":180,"box":{"x":116,"y":831,"width":753,"height":12}},{"id":"a8e315d6-95af-474f-8cb5-445f544cfebc","block_type":"box","text":"commissions charged to the Funds or their shareholders. BlackRock and its advisory or other","page_number":180,"box":{"x":116,"y":847,"width":698,"height":12}},{"id":"7b1b3db7-5e7e-4dc2-a611-345fd3706f0f","block_type":"box","text":"personnel may also benefit from increased amounts of assets under management. 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Therefore, BlackRock may not be able to review potential investments for the Funds with","page_number":182,"box":{"x":116,"y":785,"width":746,"height":12}},{"id":"cead5e0d-b0f3-4903-b39d-301fdab51562","block_type":"box","text":"the benefit of information held by certain areas of BlackRock.","page_number":182,"box":{"x":116,"y":800,"width":452,"height":12}},{"id":"2b685302-d2f7-4fd1-b182-a0f3f6c2034a","block_type":"box","text":"BlackRock may determine to move certain personnel,","page_number":182,"box":{"x":117,"y":831,"width":394,"height":12}},{"id":"18fdcf61-55f1-4c97-96bd-e67fab7095f5","block_type":"box","text":"businesses, or business units from one side of an","page_number":182,"box":{"x":511,"y":831,"width":365,"height":11}},{"id":"4426dde7-42e3-4a5e-a1c4-d25717ed6919","block_type":"box","text":"information barrier to the other side of the info","page_number":182,"box":{"x":117,"y":847,"width":331,"height":9}},{"id":"52a55f98-45e9-428d-9472-d81529159f33","block_type":"box","text":"rmation barrier. In connection therewith, BlackRock","page_number":182,"box":{"x":449,"y":847,"width":376,"height":11}},{"id":"55975bdb-f56b-4fbe-b3f1-351deada5107","block_type":"box","text":"personnel, businesses, and business units that were moved will no longer have access to the information","page_number":182,"box":{"x":117,"y":862,"width":767,"height":12}},{"id":"7759e1a4-3b81-4c9e-b2bd-2ee07c6ae53a","block_type":"box","text":"and personnel from the side of the information barrier f","page_number":182,"box":{"x":116,"y":878,"width":392,"height":12}},{"id":"7cc84a14-f705-4c44-978d-d830eaef620e","block_type":"box","text":"from which they were moved. Information obtained","page_number":182,"box":{"x":508,"y":878,"width":374,"height":12}},{"id":"8a6743de-3d6a-4479-ade2-f3c7a8213374","block_type":"box","text":"II-123","page_number":182,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"262b4a54-aebf-4059-8a0f-47407074044d","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":182,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1a65f393-70cb-405a-916e-cb36361d5e11","block_type":"box","text":"in connection with such changes to information barriers","page_number":183,"box":{"x":117,"y":87,"width":405,"height":12}},{"id":"6041de35-67e5-40b7-aaa4-52a77aabb91d","block_type":"box","text":"may limit or restrict the ability of BlackRock to","page_number":183,"box":{"x":523,"y":87,"width":334,"height":12}},{"id":"ed47e9e4-5f83-451d-b70b-bd5a0dce3b62","block_type":"box","text":"engage in or otherwise effect transactions on behalf","page_number":183,"box":{"x":116,"y":102,"width":381,"height":13}},{"id":"d498d8d6-1908-4179-b1ee-6d9ca88d8c78","block_type":"box","text":"of the Funds (including purchasing or selling","page_number":183,"box":{"x":498,"y":102,"width":325,"height":13}},{"id":"10146a97-8987-4aba-b326-cd70657d0a6e","block_type":"box","text":"securities that BlackRock may otherwise have purchased","page_number":183,"box":{"x":116,"y":118,"width":421,"height":12}},{"id":"ff70be12-099e-44d5-80ec-3709b1bad539","block_type":"box","text":"or sold for a client in the absence of a change","page_number":183,"box":{"x":537,"y":118,"width":336,"height":12}},{"id":"2521d16e-1507-4f04-a5a5-730f54bf3a97","block_type":"box","text":"to an information barrier). Informati","page_number":183,"box":{"x":116,"y":134,"width":252,"height":12}},{"id":"581be858-76ce-47f4-934c-ec7bfc68ec89","block_type":"box","text":"on barriers may not have their intended impact due to, for example,","page_number":183,"box":{"x":369,"y":134,"width":494,"height":12}},{"id":"6c853a58-297d-4697-830a-32de0221e037","block_type":"box","text":"changes in applicable law or inadvertent crossings","page_number":183,"box":{"x":116,"y":149,"width":371,"height":12}},{"id":"9da5ac6a-0d06-4e86-bc35-d65a827e470d","block_type":"box","text":"of the barriers, and actions by personnel on one side","page_number":183,"box":{"x":487,"y":149,"width":388,"height":12}},{"id":"facd7088-2d24-4462-b0b7-310d5ccb8ab3","block_type":"box","text":"of a barrier may impact the potential actions","page_number":183,"box":{"x":116,"y":165,"width":324,"height":12}},{"id":"7d31dfd9-97fd-4dd6-8e91-324814cb731e","block_type":"box","text":"of personnel on the other side of a barrier.","page_number":183,"box":{"x":440,"y":165,"width":310,"height":11}},{"id":"9b84cc91-b3c0-4a75-8c88-3dd942160337","block_type":"box","text":"Although the information barriers are intended to allow for independent portfolio management decision","page_number":183,"box":{"x":116,"y":196,"width":764,"height":12}},{"id":"d6553c89-df31-4057-aad8-39c5231d78d4","block_type":"box","text":"making and proxy voting among certain BlackRock businesses, the investment activities of BlackRock","page_number":183,"box":{"x":117,"y":211,"width":761,"height":12}},{"id":"8d3d721e-af51-43be-a77c-16c8b755927c","block_type":"box","text":"for BlackRock clients, as well as BlackRock’s proprietary accounts, may nonetheless limit the","page_number":183,"box":{"x":116,"y":227,"width":697,"height":12}},{"id":"5aacad7b-8f46-4408-b4f5-0ab254492d70","block_type":"box","text":"investment strategies and rights of other clients (including the Fund). 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In light of certain restrictions, BlackRock may also seek to","page_number":183,"box":{"x":116,"y":428,"width":729,"height":12}},{"id":"d6c1f4de-c359-47c5-898b-a1a0c3ef8bc2","block_type":"box","text":"make indirect investments (e.g., using derivatives) on behalf of its clients to receive exposure to certain","page_number":183,"box":{"x":117,"y":444,"width":769,"height":12}},{"id":"1402c373-11f2-4a9c-8d1f-8102c277550c","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that","page_number":183,"box":{"x":116,"y":459,"width":762,"height":12}},{"id":"8b207acf-18a3-4c61-8dba-cae341cf71d5","block_type":"box","text":"will expose such clients to additional costs and additional risks, including any risks associated with","page_number":183,"box":{"x":116,"y":475,"width":734,"height":12}},{"id":"d5fd27e6-ada5-4068-9a0e-5e9f74c821f3","block_type":"box","text":"investing in derivatives. There may be limited availability of derivatives that provide indirect exposure to","page_number":183,"box":{"x":117,"y":490,"width":769,"height":12}},{"id":"c8ded097-f51a-40a2-ad2b-be5776b489c4","block_type":"box","text":"an impacted security. BlackRock clients can be subject to more than one ownership limitation","page_number":183,"box":{"x":116,"y":506,"width":698,"height":12}},{"id":"6f3ff814-841e-43d4-8845-03fc291bb4a3","block_type":"box","text":"depending on each client’s holdings, and each ownership limitation can impact multiple securities held","page_number":183,"box":{"x":116,"y":521,"width":763,"height":12}},{"id":"6780082c-cf7b-432e-a7f7-36f3a0e3ea5a","block_type":"box","text":"by the client. Certain clients or shareholders may have their own overlapping obligations to monitor","page_number":183,"box":{"x":117,"y":537,"width":738,"height":12}},{"id":"fb065a26-a6bf-4f15-9fff-e9c8914198a8","block_type":"box","text":"their compliance with ownership limitations across their investments.","page_number":183,"box":{"x":116,"y":552,"width":513,"height":12}},{"id":"13cbd7be-7a8a-41a4-bc7a-a2ec6c3dbda9","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a","page_number":183,"box":{"x":117,"y":583,"width":738,"height":12}},{"id":"ce04313d-0a89-453f-9d36-16011d1216a3","block_type":"box","text":"BlackRock client or as a result of corporate actions by the issuer, the ability of BlackRock on behalf of","page_number":183,"box":{"x":117,"y":599,"width":758,"height":12}},{"id":"4d5df2bb-610c-48fc-aa9c-928abbde64fc","block_type":"box","text":"clients to purchase or dispose of investments, or exercise rights (including voting) or undertake","page_number":183,"box":{"x":116,"y":614,"width":709,"height":12}},{"id":"0ca429be-275b-42a0-b375-099946f19f44","block_type":"box","text":"business transactions, may be restricted by law, regulation, rule, or organizational documents or","page_number":183,"box":{"x":117,"y":630,"width":717,"height":12}},{"id":"f11464f0-08e1-4e7e-82de-4bb8f794149d","block_type":"box","text":"otherwise impaired. 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A Fund’s service provider remunerates BlackRock for the use of the systems.","page_number":185,"box":{"x":117,"y":196,"width":764,"height":12}},{"id":"c6bcf4e9-68ce-45ef-8db8-dfe5a604d030","block_type":"box","text":"A Fund service provider’s payments to BlackRock for the use of these systems may enhance the","page_number":185,"box":{"x":116,"y":211,"width":724,"height":12}},{"id":"f074ad62-8703-48c7-8d9a-3bcae4f4eba8","block_type":"box","text":"profitability of BlackRock.","page_number":185,"box":{"x":117,"y":227,"width":191,"height":12}},{"id":"b80c26f2-286a-4677-9e66-73b1c4c9172a","block_type":"box","text":"BlackRock’s receipt of fees from a service provider in connection with the use of systems provided by","page_number":185,"box":{"x":117,"y":258,"width":757,"height":12}},{"id":"a20a4940-7d3e-44e0-824c-48e4d244b830","block_type":"box","text":"BlackRock may create an incentive for BlackRock to recommend that a Fund enter into or renew an","page_number":185,"box":{"x":117,"y":273,"width":745,"height":12}},{"id":"26ceba18-29aa-49ed-a171-4104934d3aa6","block_type":"box","text":"arrangement with the service provider.","page_number":185,"box":{"x":116,"y":289,"width":291,"height":12}},{"id":"2a2361a5-8781-4fdc-b501-c1e690725691","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special","page_number":185,"box":{"x":117,"y":320,"width":762,"height":12}},{"id":"3e864010-f893-4a8a-b02f-ab4e987279b8","block_type":"box","text":"pricing arrangements for certain services provided by BlackRock. Any such special pricing","page_number":185,"box":{"x":117,"y":335,"width":673,"height":12}},{"id":"2be0c968-71c1-4ab2-aa05-9d6a260ae046","block_type":"box","text":"arrangements will not affect Fund fees and expenses applicable to such client’s investment in a Fund.","page_number":185,"box":{"x":116,"y":351,"width":760,"height":12}},{"id":"3a19fdf6-4395-483a-8771-b261ff9ea5f0","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":185,"box":{"x":117,"y":382,"width":771,"height":12}},{"id":"8b2c350d-3e36-4aff-90cf-5aec3421b8b9","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":185,"box":{"x":116,"y":397,"width":537,"height":12}},{"id":"c5837ba8-a732-4124-9b92-1f2fea693b63","block_type":"box","text":"P","page_number":185,"box":{"x":418,"y":444,"width":9,"height":9}},{"id":"d17f3631-1f45-4c7d-bc95-38371cc415ae","block_type":"box","text":"URCHASE","page_number":185,"box":{"x":429,"y":446,"width":65,"height":7}},{"id":"306d3407-1264-4002-b5b0-409294db4286","block_type":"box","text":"OF","page_number":185,"box":{"x":500,"y":446,"width":18,"height":7}},{"id":"c2f3cd8e-2593-43f8-bb28-eca857347ba9","block_type":"box","text":"S","page_number":185,"box":{"x":519,"y":444,"width":15,"height":9}},{"id":"11a388cc-b003-40f6-a3a7-71478049bbf2","block_type":"box","text":"HARES","page_number":185,"box":{"x":536,"y":446,"width":46,"height":7}},{"id":"fbfce733-7a7a-4ddf-b0f2-5d95be27bbd7","block_type":"box","text":"Most BlackRock-advised open-end funds offer multiple classes of shares under a plan adopted under","page_number":185,"box":{"x":117,"y":475,"width":756,"height":12}},{"id":"58f1cc34-86ac-4ca7-aee1-2403fcc653b1","block_type":"box","text":"Rule 18f-3 under the Investment Company Act. Investor A Shares are sold to investors choosing the","page_number":185,"box":{"x":117,"y":490,"width":748,"height":12}},{"id":"b7ad69ac-88b9-4c77-9f03-6b626ae903c0","block_type":"box","text":"initial sales charge alternative, except that Investor A Shares of Index Funds (defined below) and","page_number":185,"box":{"x":117,"y":506,"width":723,"height":12}},{"id":"4b9ea3d8-69d5-46f7-b342-bff05d14a877","block_type":"box","text":"BlackRock Short Obligations Fund are generally not subject to an initial sales charge, and Investor C","page_number":185,"box":{"x":117,"y":521,"width":752,"height":12}},{"id":"2e927198-438f-4d08-9839-04926f091ed8","block_type":"box","text":"Shares are sold to investors choosing the deferred sales charge alternative. Investor P Shares are","page_number":185,"box":{"x":116,"y":537,"width":735,"height":12}},{"id":"50f2e87f-7451-4fe3-9de9-c3502a82ea4e","block_type":"box","text":"available only to certain investors purchasing shares of Funds through registered representatives of an","page_number":185,"box":{"x":116,"y":552,"width":768,"height":12}},{"id":"29de67ae-1afd-4ac1-98c4-ef16078d3273","block_type":"box","text":"insurance company’s broker-dealer that has entered into an agreement with the Distributor to offer","page_number":185,"box":{"x":117,"y":568,"width":734,"height":12}},{"id":"9a428635-dacd-4bb2-853c-1a8758434f73","block_type":"box","text":"such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":185,"box":{"x":116,"y":583,"width":692,"height":12}},{"id":"0cae5a28-2975-48dd-928f-571de05d5c59","block_type":"box","text":"Certain Funds offer Class R Shares, which are avail","page_number":185,"box":{"x":117,"y":614,"width":367,"height":11}},{"id":"3ed92307-2af5-4b80-add2-ba5a8e2e325b","block_type":"box","text":"able only to certain employer-sponsored retirement","page_number":185,"box":{"x":485,"y":614,"width":368,"height":12}},{"id":"7350955e-c5cb-4d87-ae5b-46335cc2f0c7","block_type":"box","text":"plans and are sold without a sales charge. Certain Funds offer Class G Shares, which are available only to","page_number":185,"box":{"x":117,"y":630,"width":760,"height":12}},{"id":"a4943082-d534-406d-a60d-289047a9375f","block_type":"box","text":"investors on eligible platforms, which are platforms","page_number":185,"box":{"x":117,"y":645,"width":358,"height":12}},{"id":"e2e1a668-ca43-4ad5-9242-495bae10f111","block_type":"box","text":"where clients invest in the Fund through a single","page_number":185,"box":{"x":475,"y":645,"width":353,"height":12}},{"id":"dba29971-186e-4973-9663-559a4cb8c8d5","block_type":"box","text":"omnibus account in the name of a financial intermedi","page_number":185,"box":{"x":116,"y":661,"width":374,"height":9}},{"id":"f93e2d43-c81d-4804-bbc7-90b9938d86ad","block_type":"box","text":"ary that meets an initial investment minimum of","page_number":185,"box":{"x":492,"y":661,"width":335,"height":12}},{"id":"71a5754c-dfe5-483c-a2c2-0351fd7b937c","block_type":"box","text":"$2 billion. In addition, certain Funds offer Service Share","page_number":185,"box":{"x":116,"y":675,"width":385,"height":12}},{"id":"b2f2dcce-f046-4983-a0e9-fb6488036e79","block_type":"box","text":"res, BlackRock Shares and/or Class K Shares that are","page_number":185,"box":{"x":501,"y":676,"width":382,"height":11}},{"id":"8f19d50c-ef55-4c7f-9eaa-887664319540","block_type":"box","text":"available only to certain eligible investors. Pl","page_number":185,"box":{"x":116,"y":692,"width":312,"height":12}},{"id":"1ba2ec5c-baeb-4fb8-9076-e335233d3a32","block_type":"box","text":"ease see the appropriate Prospectus for your Fund to","page_number":185,"box":{"x":429,"y":692,"width":381,"height":12}},{"id":"669d6582-a3de-4c77-b550-94f25002a263","block_type":"box","text":"determine which classes are offered by your Fund and under","page_number":185,"box":{"x":116,"y":707,"width":434,"height":12}},{"id":"3af9625b-6b6c-4d67-9bfb-881e54b7e6b3","block_type":"box","text":"what circumstances. Each class has different","page_number":185,"box":{"x":553,"y":707,"width":322,"height":10}},{"id":"60ef87a8-adfd-40d3-890e-d4c21bf34fce","block_type":"box","text":"exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":185,"box":{"x":116,"y":723,"width":516,"height":12}},{"id":"7c1c6c74-d1fa-458c-af1d-01fe713cf7e0","block_type":"box","text":"The applicable offering price for purchase orders is based on the NAV of a Fund next determined after","page_number":185,"box":{"x":116,"y":754,"width":760,"height":12}},{"id":"19b1fc9d-9ccd-41cc-a316-24476b989219","block_type":"box","text":"receipt of the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has","page_number":185,"box":{"x":117,"y":769,"width":724,"height":12}},{"id":"5a675a7d-a48c-4d65-a53d-36185dd2fa08","block_type":"box","text":"been authorized by the Distributor by contract to accept such orders. In addition, with respect to the","page_number":185,"box":{"x":117,"y":785,"width":737,"height":12}},{"id":"0885d642-41b2-4a02-b49a-f7c926c53948","block_type":"box","text":"affiliated underlying funds in which target date funds advised by BlackRock or its affiliates (“BlackRock","page_number":185,"box":{"x":116,"y":800,"width":759,"height":12}},{"id":"fe1608ce-ce06-4929-829e-8711ea26e987","block_type":"box","text":"Target Date Funds”) invest, the applicable offering price of each affiliated underlying fund is based on","page_number":185,"box":{"x":116,"y":816,"width":752,"height":12}},{"id":"22fb1a17-dad9-4bb7-9d4c-19797858f345","block_type":"box","text":"the NAV of such affiliated underlying fund next determined after a purchase order is received, or","page_number":185,"box":{"x":116,"y":831,"width":718,"height":12}},{"id":"1e414b7a-4d2a-425c-bb9f-cabd8a26759e","block_type":"box","text":"deemed to be received upon receipt by a Selling Dealer, by the BlackRock Target Date Funds that","page_number":185,"box":{"x":116,"y":847,"width":736,"height":12}},{"id":"91ca743b-45d7-47be-ac31-6111dbd32294","block_type":"box","text":"allocate a portion of such purchase order to such affiliated underlying fund. As to purchase orders","page_number":185,"box":{"x":116,"y":862,"width":730,"height":12}},{"id":"3da0c284-ccc1-4553-ace5-8e4b9c14c4c7","block_type":"box","text":"received by Selling Dealers or BlackRock Target Date Funds prior to the close of business on the New","page_number":185,"box":{"x":117,"y":878,"width":765,"height":12}},{"id":"dc3626f5-0ff9-4b88-855b-26b50679c697","block_type":"box","text":"II-126","page_number":185,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"c66a9837-687a-4f9a-bb2c-c25b6bca76ed","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":185,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"27b61ef9-e2a7-4b02-9354-a974853a0229","block_type":"box","text":"York Stock Exchange (“NYSE”) (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the","page_number":186,"box":{"x":116,"y":87,"width":767,"height":12}},{"id":"1e5ae5d2-a4ae-4a37-96d5-624819c29d9c","block_type":"box","text":"order is placed, including orders received after the close of business on the previous day, the","page_number":186,"box":{"x":116,"y":102,"width":696,"height":13}},{"id":"830bec24-7c15-408e-abc6-98888a504db0","block_type":"box","text":"applicable offering price is based on the NAV determined as of the close of business on the NYSE on","page_number":186,"box":{"x":116,"y":118,"width":757,"height":12}},{"id":"239554f7-e8cc-481e-9045-dd62871d5271","block_type":"box","text":"that day. If the purchase orders are not received by the Selling Dealer or a BlackRock Target Date","page_number":186,"box":{"x":116,"y":134,"width":734,"height":12}},{"id":"eea10014-3664-4b76-b49d-42ec57a01c45","block_type":"box","text":"Fund before the close of business on the NYSE, such orders are deemed received on the next","page_number":186,"box":{"x":117,"y":149,"width":706,"height":11}},{"id":"829f78ab-94e3-4ed8-9808-6ccb0516cb8d","block_type":"box","text":"business day. It is the responsibility of brokers to transmit purchase orders and payment on a timely","page_number":186,"box":{"x":117,"y":165,"width":745,"height":12}},{"id":"8b180730-b616-40ed-a6a5-7d1b9876dc57","block_type":"box","text":"basis. Generally, if payment is not received within the period described in the Prospectuses, the order","page_number":186,"box":{"x":117,"y":180,"width":758,"height":12}},{"id":"f09ff089-5d1b-48e4-973e-462defdded5c","block_type":"box","text":"will be canceled, notice thereof will be given, and","page_number":186,"box":{"x":116,"y":196,"width":368,"height":12}},{"id":"188cfe68-bf6c-4359-877f-3e235b8ca6d2","block_type":"box","text":"the broker and its customers will be responsible for","page_number":186,"box":{"x":484,"y":196,"width":384,"height":11}},{"id":"640848cb-f5ce-4e84-828d-ee9dbbd28ff6","block_type":"box","text":"any loss to the Fund or its shareholders. Orders of less than $500 may be mailed by a broker to the","page_number":186,"box":{"x":116,"y":210,"width":743,"height":13}},{"id":"d9bf09e7-110b-4ceb-a5ce-9d94efa36c27","block_type":"box","text":"Transfer Agent.","page_number":186,"box":{"x":116,"y":227,"width":120,"height":12}},{"id":"402098e1-788d-491b-885f-caf1932d5b86","block_type":"box","text":"The minimum investment for the initial purchase of shares is set forth in the Prospectus for each Fund.","page_number":186,"box":{"x":116,"y":258,"width":766,"height":11}},{"id":"ea84ac61-80e5-4c54-b859-e84230ea3091","block_type":"box","text":"The minimum initial investment for employees of a Fund, a Fund’s Manager, Sub-Advisers or BRIL or","page_number":186,"box":{"x":116,"y":273,"width":758,"height":12}},{"id":"dc36d1c2-809e-4956-9249-fbb6c61169ee","block_type":"box","text":"employees of their affiliates is $100, unless payment is made through a payroll deduction program in","page_number":186,"box":{"x":116,"y":288,"width":751,"height":13}},{"id":"cac5c1d4-97cb-46de-ac32-d05fb8233758","block_type":"box","text":"which case the minimum investment is $25.","page_number":186,"box":{"x":116,"y":303,"width":329,"height":12}},{"id":"ef06fbb5-1f43-45ee-ac12-c4c549341482","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase","page_number":186,"box":{"x":117,"y":335,"width":749,"height":12}},{"id":"90c208ac-e04f-4565-831b-5c9573386423","block_type":"box","text":"Institutional Shares, including selected fee-based programs. Each Fund may permit a lower initial","page_number":186,"box":{"x":117,"y":351,"width":726,"height":12}},{"id":"9e367d9e-47d9-4ee9-b2fb-c891f6bd11c4","block_type":"box","text":"investment for certain investors if their purchase, combined with purchases by other investors received","page_number":186,"box":{"x":117,"y":366,"width":766,"height":12}},{"id":"1106d63c-83da-4a69-8740-505ec70a6791","block_type":"box","text":"together by the Fund, meets the minimum investment requirement. Each Fund may reject any","page_number":186,"box":{"x":116,"y":382,"width":702,"height":12}},{"id":"a160ffd3-164b-4eaa-a1a2-d87535d4c737","block_type":"box","text":"purchase order, modify or waive the minimum initial or subsequent investment requirements and","page_number":186,"box":{"x":117,"y":397,"width":720,"height":12}},{"id":"517c03ab-0160-4b58-9b8b-0c3a55ec5451","block_type":"box","text":"suspend and resume the sale of any share class of any Fund at any time.","page_number":186,"box":{"x":116,"y":413,"width":551,"height":12}},{"id":"68b08b76-c622-4517-84b8-35af00949a3b","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance","page_number":186,"box":{"x":117,"y":444,"width":758,"height":12}},{"id":"2b079617-f0d9-4385-b067-2c7cc83825ae","block_type":"box","text":"with a financial intermediary’s policies and procedures, exchange shares of a Fund from one class of","page_number":186,"box":{"x":116,"y":459,"width":753,"height":12}},{"id":"b7e232eb-81c4-4a6f-83f4-ede532ce757a","block_type":"box","text":"shares to another class of shares of the same Fund, provided that the exchanged shares are not","page_number":186,"box":{"x":116,"y":475,"width":722,"height":12}},{"id":"93b49f44-3c42-44c5-be75-9f1124d43be0","block_type":"box","text":"subject to a contingent deferred sales charge (“CDSC”) and that shareholders meet eligibility","page_number":186,"box":{"x":116,"y":490,"width":693,"height":12}},{"id":"6ad98b9f-c9f8-4b6b-af24-106e82380bcf","block_type":"box","text":"requirements of the new share class. Please speak to your financial intermediary for information about","page_number":186,"box":{"x":117,"y":506,"width":763,"height":12}},{"id":"cdaa6d7d-9af8-4db0-8a14-2b7c1ef54a5b","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":186,"box":{"x":116,"y":521,"width":448,"height":12}},{"id":"03ad46bd-547b-46ad-bf5e-81380967fa08","block_type":"box","text":"Each Fund or the Distributor may suspend the continuous offering of the Fund’s shares of any class at","page_number":186,"box":{"x":117,"y":552,"width":763,"height":12}},{"id":"0a646b40-2de8-4de0-997a-6c06f2ceea0a","block_type":"box","text":"any time in response to conditions in the securities markets or otherwise and may resume offering the","page_number":186,"box":{"x":116,"y":568,"width":761,"height":12}},{"id":"d74ff75e-7fc9-4d92-af88-da73f4d49050","block_type":"box","text":"shares from time to time. Any order may be rejected by a Fund or the Distributor. Neither the","page_number":186,"box":{"x":116,"y":583,"width":693,"height":12}},{"id":"b730d6c9-37ed-4d8d-a9f8-55bc3715b468","block_type":"box","text":"Distributor, the securities dealers nor other financial intermediaries are permitted to withhold placing","page_number":186,"box":{"x":117,"y":599,"width":744,"height":12}},{"id":"da612e6a-1f06-4d13-aa4d-b7416fbce852","block_type":"box","text":"orders to benefit themselves by a price change.","page_number":186,"box":{"x":116,"y":614,"width":358,"height":12}},{"id":"040623de-106f-4dea-a56c-07da38c90ccd","block_type":"box","text":"The term “purchase,” as used in the Prospectus and this SAI, refers to (i) a single purchase by an","page_number":186,"box":{"x":116,"y":645,"width":729,"height":12}},{"id":"91a55e9a-ea9b-4d69-b47f-8932c3213143","block_type":"box","text":"individual, (ii) concurrent purchases by an individual, his or her spouse and their children purchasing","page_number":186,"box":{"x":117,"y":661,"width":742,"height":12}},{"id":"64978279-04ca-4ad3-8c20-3e8e382e7e54","block_type":"box","text":"shares for his, her or their own account, and (iii) single purchases by a trustee or other fiduciary","page_number":186,"box":{"x":116,"y":676,"width":709,"height":12}},{"id":"24f89073-bd1f-4cb2-9811-ac691f23f53a","block_type":"box","text":"purchasing shares for a single trust estate or single fiduciary account although more than one","page_number":186,"box":{"x":117,"y":692,"width":693,"height":12}},{"id":"4d688c05-9123-4014-ae4e-4f123734aba4","block_type":"box","text":"beneficiary may be involved. The term “purchase” also includes purchases by any “company,” as that","page_number":186,"box":{"x":117,"y":707,"width":751,"height":12}},{"id":"ccdf325d-1fed-4329-a4bd-cec9c8153d54","block_type":"box","text":"term is defined in the Investment Company Act, but does not include purchases by (i) any company","page_number":186,"box":{"x":116,"y":723,"width":738,"height":12}},{"id":"a9bd30a4-876e-4f0d-a6e1-763b944840f8","block_type":"box","text":"that has not been in existence for at least six months, (ii) a company that has no purpose other than","page_number":186,"box":{"x":116,"y":738,"width":740,"height":12}},{"id":"29eb8748-c115-43be-8c27-a4fc91a365ad","block_type":"box","text":"the purchase of shares of a Fund or shares of other registered investment companies at a discount, or","page_number":186,"box":{"x":116,"y":754,"width":760,"height":12}},{"id":"46b2b276-2602-4a92-a09d-305a4c381765","block_type":"box","text":"(iii) any group of individuals whose sole organizational nexus is that its participants are credit","page_number":186,"box":{"x":117,"y":769,"width":687,"height":12}},{"id":"70b1656d-63e6-47f3-96ea-d3c1d1ee7a7b","block_type":"box","text":"cardholders of a company, policyholders of an insurance company, customers of either a bank or","page_number":186,"box":{"x":116,"y":785,"width":721,"height":12}},{"id":"4e930f99-f391-4fa3-872b-69ff67e0623c","block_type":"box","text":"broker-dealer or clients of an investment adviser.","page_number":186,"box":{"x":117,"y":800,"width":361,"height":10}},{"id":"175da9b7-eecb-45ea-9142-72ecb9675945","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the","page_number":186,"box":{"x":116,"y":831,"width":725,"height":12}},{"id":"7c9f3716-abdf-4e11-8c78-38be3ee2c956","block_type":"box","text":"United States and may not be distributed by a foreign financial intermediary. Under this policy, in order","page_number":186,"box":{"x":117,"y":847,"width":764,"height":12}},{"id":"d876405f-e7e9-4308-b3ff-07bcca8de0fa","block_type":"box","text":"to accept new accounts or additional investments (including by way of exchange from another Fund)","page_number":186,"box":{"x":116,"y":862,"width":750,"height":12}},{"id":"e512b7a1-603f-4557-8b6c-c40a8bd1a1fe","block_type":"box","text":"into existing accounts, a Fund generally requires that (i) a shareholder that is a natural person be a","page_number":186,"box":{"x":117,"y":878,"width":738,"height":12}},{"id":"a46dec47-42b2-4822-8b5b-7eae09f2e23d","block_type":"box","text":"II-127","page_number":186,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"1d5afa58-310c-48a6-9de2-d7482a4e437d","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":186,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f5e15ef6-4132-4be8-91f9-6799b26d9239","block_type":"box","text":"U.S. citizen or resident alien, in each case residing within the United States or a U.S. territory","page_number":187,"box":{"x":117,"y":87,"width":695,"height":12}},{"id":"143b4f04-418d-4285-b043-6ca8a56bdca4","block_type":"box","text":"(including APO/FPO/DPO addresses), and have a valid U.S. taxpayer identification number, and (ii) a","page_number":187,"box":{"x":117,"y":102,"width":757,"height":13}},{"id":"b2992120-eb06-4c3e-b5be-a3334fdbcffb","block_type":"box","text":"financial intermediary or a shareholder that is an entity be domiciled in the United States and have a","page_number":187,"box":{"x":116,"y":118,"width":747,"height":12}},{"id":"c521223a-b797-43ef-b385-fc807405cf85","block_type":"box","text":"valid U.S. taxpayer identification number or be domiciled in a U.S. territory and have a valid U.S.","page_number":187,"box":{"x":116,"y":134,"width":720,"height":12}},{"id":"7a04f8dd-9e7d-44dc-a971-a44eef3cb451","block_type":"box","text":"taxpayer identification number or IRS Form W-8. 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Investors who are eligible to purchase Institutional Shares","page_number":187,"box":{"x":116,"y":439,"width":737,"height":12}},{"id":"f8447848-ec91-46e4-a0bf-558622c4f8d4","block_type":"box","text":"should purchase Institutional Shares because they are not subject to any sales charge and have lower","page_number":187,"box":{"x":116,"y":455,"width":765,"height":12}},{"id":"ef1db60d-713e-4453-ae6e-a67785b2188c","block_type":"box","text":"ongoing expenses than Investor A, Investor A1, Investor C, Investor P, Class R or Service Shares. A","page_number":187,"box":{"x":116,"y":470,"width":752,"height":12}},{"id":"56c28483-fd87-4425-9318-61b553ca1b0e","block_type":"box","text":"Fund may in its discretion waive or modify any minimum investment amount, may reject any order for","page_number":187,"box":{"x":117,"y":486,"width":755,"height":12}},{"id":"dfb76075-c5c9-4b78-9abb-06e3fa0d3090","block_type":"box","text":"any class of shares and may suspend and resume the sale of shares of any Fund at any time.","page_number":187,"box":{"x":116,"y":501,"width":703,"height":12}},{"id":"bf78b865-c0c3-4c94-bea7-bca6a92c6da9","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":187,"box":{"x":116,"y":534,"width":269,"height":12}},{"id":"d1c059b1-265c-45af-9928-9cbeea98af61","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers","page_number":187,"box":{"x":387,"y":534,"width":499,"height":12}},{"id":"e9d81771-2c22-4b11-9148-52a8ca7aab42","block_type":"box","text":"of broker-dealers and agents that have established a servicing relationship with the Fund on behalf of","page_number":187,"box":{"x":116,"y":549,"width":757,"height":12}},{"id":"64fba8ff-05b1-419d-ac03-98248e0e9e2a","block_type":"box","text":"their customers. 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trust","page_number":188,"box":{"x":521,"y":350,"width":355,"height":12}},{"id":"39d327bf-ebe5-4c4a-adba-e247ea6607a5","block_type":"box","text":"department clients of Bank of Amer","page_number":188,"box":{"x":116,"y":366,"width":269,"height":12}},{"id":"21c55680-06e9-4d1b-957c-72e5e5330428","block_type":"box","text":"ica, N.A. and its affiliates for whom they (i) act in a fiduciary","page_number":188,"box":{"x":386,"y":366,"width":455,"height":12}},{"id":"ef80f912-37f4-45ca-bb7a-ac3bfff82128","block_type":"box","text":"capacity (excluding participant directed employee","page_number":188,"box":{"x":116,"y":382,"width":380,"height":12}},{"id":"0b4d6e40-e4b4-451a-9cf7-a6ab7eddc93f","block_type":"box","text":"benefit plans), (ii) otherwise have investment","page_number":188,"box":{"x":497,"y":382,"width":345,"height":12}},{"id":"2b9d79e8-148a-4fef-b326-d4af56e1a98e","block_type":"box","text":"discretion, or (iii) act as custodian for at least","page_number":188,"box":{"x":116,"y":397,"width":346,"height":12}},{"id":"ef02ac9b-951e-42c2-b17c-19069af09bc7","block_type":"box","text":"$2 million in assets; and holders of certain BofA Corp.","page_number":188,"box":{"x":463,"y":396,"width":414,"height":13}},{"id":"ae54b277-a587-4243-812c-102b056b8f12","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest","page_number":188,"box":{"x":116,"y":413,"width":401,"height":12}},{"id":"30295305-e40a-4629-a304-0e85ddd6a138","block_type":"box","text":"dividends received from such UITs in shares of","page_number":188,"box":{"x":518,"y":413,"width":367,"height":9}},{"id":"4426064c-bd3d-4e77-97cd-c22c61823148","block_type":"box","text":"a Fund.","page_number":188,"box":{"x":116,"y":428,"width":63,"height":10}},{"id":"27220bd0-6d91-4cc3-b0dc-df9a2a092752","block_type":"box","text":"Purchase Privileges of Certain Persons.","page_number":188,"box":{"x":116,"y":457,"width":295,"height":12}},{"id":"c45005f3-9c33-4bb8-87a5-e1b3b4d61908","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc.,","page_number":188,"box":{"x":413,"y":457,"width":439,"height":12}},{"id":"5470720b-7493-4421-b46b-7686d3006afd","block_type":"box","text":"BlackRock Funds, BofA Corp. or their respective affiliates; and any trust, pension, profit-sharing or","page_number":188,"box":{"x":117,"y":472,"width":733,"height":12}},{"id":"0e1b4cc1-2623-4892-a1af-f9477c9e197b","block_type":"box","text":"other benefit plan for such persons may purchase Institutional Shares at lower investment minimums","page_number":188,"box":{"x":116,"y":488,"width":753,"height":12}},{"id":"f6b66f4e-88c8-4d28-833d-72b9b8ba9244","block_type":"box","text":"than stated in each Fund’s Prospectus. A Fund realizes economies of scale and reduction of sales","page_number":188,"box":{"x":116,"y":503,"width":735,"height":12}},{"id":"9df4b3a3-f5e9-48d1-bf59-535b99f150da","block_type":"box","text":"related expenses by virtue of the familiarity of these persons with the Fund. Employees, directors, and","page_number":188,"box":{"x":117,"y":519,"width":761,"height":12}},{"id":"7eb2d10d-27bb-4264-8f02-e7d2f527f374","block_type":"box","text":"board members of other funds wishing to purchase shares of a Fund must satisfy the Fund’s suitability","page_number":188,"box":{"x":117,"y":534,"width":764,"height":12}},{"id":"17035701-bfe7-4575-aa33-78872ff9a49b","block_type":"box","text":"standards.","page_number":188,"box":{"x":116,"y":550,"width":83,"height":9}},{"id":"3c54fefb-17d1-48c2-92a6-ea1c4761ea4a","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":188,"box":{"x":117,"y":579,"width":420,"height":12}},{"id":"ab3f2f28-06af-4cc9-ad18-a59a42895953","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares.","page_number":188,"box":{"x":117,"y":601,"width":717,"height":12}},{"id":"b72111a3-9846-4093-8d1d-b37b1aef23c5","block_type":"box","text":"Investor A1 Shares are offered only (i) for purchase by certain employer-sponsored retirement plans","page_number":188,"box":{"x":117,"y":616,"width":748,"height":12}},{"id":"cfeaf6b1-d83f-4a55-82b2-b4faeb6a59bb","block_type":"box","text":"and fee-based programs that have been previously approved by certain Funds, and (ii) to certain","page_number":188,"box":{"x":116,"y":632,"width":723,"height":12}},{"id":"c46b5e75-4564-49ba-a36c-62fd6d0a70d4","block_type":"box","text":"investors who currently hold Investor A1 Shares for dividend and capital gain reinvestment only. The","page_number":188,"box":{"x":117,"y":647,"width":749,"height":12}},{"id":"2757fe27-1555-4a5c-b0a5-196332144bda","block_type":"box","text":"Investor A1 initial sales charge does not apply to the transactions described in (i) and (ii). For ease of","page_number":188,"box":{"x":117,"y":663,"width":750,"height":12}},{"id":"caba3fcc-f873-43d8-988d-4ff942f29d4a","block_type":"box","text":"reference, Investor A, Investor A1 and Investor P (discussed below) Shares are sometimes referred to","page_number":188,"box":{"x":117,"y":678,"width":757,"height":12}},{"id":"87f5c7ea-5aed-49be-b4a9-526b0bdf2e64","block_type":"box","text":"herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and BlackRock","page_number":188,"box":{"x":117,"y":694,"width":739,"height":12}},{"id":"02e4f151-63e9-4c6f-a4e6-8b259244aff4","block_type":"box","text":"Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":188,"box":{"x":116,"y":709,"width":677,"height":12}},{"id":"3bc8f991-5de1-4524-89d4-50a7514a67f6","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge","page_number":188,"box":{"x":117,"y":738,"width":715,"height":12}},{"id":"050143cd-fe7f-40c9-a8f6-ab19e791f18f","block_type":"box","text":"alternative particularly attractive because similar sales charge reductions are not available with respect","page_number":188,"box":{"x":116,"y":754,"width":763,"height":12}},{"id":"1fbd0992-45a4-4fed-a29d-cf1f83cc0bf4","block_type":"box","text":"to the deferred sales charges imposed in connection with investments in Investor C Shares","page_number":188,"box":{"x":116,"y":769,"width":676,"height":12}},{"id":"38903569-dd33-43e6-b5f2-3354f9f30194","block_type":"box","text":"(sometimes referred to herein as “CDSC shares”). Investors who do not qualify for reduced initial sales","page_number":188,"box":{"x":117,"y":784,"width":761,"height":13}},{"id":"8b947c9a-8bcc-4132-b475-46574c2ccbf4","block_type":"box","text":"charges and who expect to maintain their investment for an extended period of time also may elect to","page_number":188,"box":{"x":116,"y":800,"width":752,"height":12}},{"id":"a17fa334-6e99-4cdf-ab8d-20215440427f","block_type":"box","text":"purchase Investor A Shares, because over time the accumulated ongoing service and distribution fees","page_number":188,"box":{"x":117,"y":815,"width":759,"height":13}},{"id":"f66d2eee-00a7-4f47-8ef5-090603cd9b9b","block_type":"box","text":"on CDSC shares may exceed the front-end load shares’ initial sales charge and service fee. Although","page_number":188,"box":{"x":116,"y":831,"width":759,"height":12}},{"id":"448dca98-97c5-4f82-9378-7f7aeddf81ce","block_type":"box","text":"some investors who previously purchased Institutional Shares may no longer be eligible to purchase","page_number":188,"box":{"x":116,"y":846,"width":749,"height":13}},{"id":"9eafea7e-210a-435e-97e3-edf3e59d152f","block_type":"box","text":"Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":188,"box":{"x":117,"y":862,"width":749,"height":12}},{"id":"71363c3e-e9bb-4e83-92b2-b4319f45b89a","block_type":"box","text":"BlackRock front-end load and CDSC share holdings, will count toward a right of accumulation that may","page_number":188,"box":{"x":117,"y":877,"width":768,"height":13}},{"id":"6ca0b453-d1f4-40dd-847e-e32c79428ee8","block_type":"box","text":"II-129","page_number":188,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"e23bca9a-937d-47fe-acf8-cd0b41a03bca","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":188,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b79f4ebb-5a68-435a-ba22-1801c78867ba","block_type":"box","text":"qualify the investor for a reduced initial sales charge on new initial sales charge purchases. In addition,","page_number":189,"box":{"x":116,"y":87,"width":768,"height":12}},{"id":"59e0451b-6039-49c9-adbf-9a2614392845","block_type":"box","text":"the ongoing CDSC shares service and distribution fees will cause CDSC shares to have higher","page_number":189,"box":{"x":116,"y":102,"width":709,"height":13}},{"id":"1b6a6150-7fdf-45c8-8a15-d7f744ef6377","block_type":"box","text":"expense ratios, pay lower dividends and have lower total returns than the initial sales charge shares.","page_number":189,"box":{"x":116,"y":118,"width":752,"height":12}},{"id":"89e6ee5a-d345-45ed-8da5-d1945ad2dfea","block_type":"box","text":"The ongoing front-end load shares’ service fees will cause Investor A, Investor A1, Investor P and","page_number":189,"box":{"x":116,"y":134,"width":731,"height":12}},{"id":"08e4176e-96e6-4fa7-8e01-574eecf73c11","block_type":"box","text":"Service Shares to have a higher expense ratio, pay lower dividends and have a lower total return than","page_number":189,"box":{"x":116,"y":149,"width":762,"height":12}},{"id":"fd059fb3-186a-412d-84e5-70bec0bf6880","block_type":"box","text":"Institutional Shares.","page_number":189,"box":{"x":117,"y":165,"width":151,"height":9}},{"id":"9e37975e-b449-4a91-a251-0d46bfd861a1","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":189,"box":{"x":116,"y":196,"width":770,"height":12}},{"id":"a144a3f5-61f2-488a-8d38-ff3cff726efd","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares","page_number":189,"box":{"x":117,"y":211,"width":767,"height":12}},{"id":"b96e4c75-7ddb-4e6d-9b98-9a43aeea4ba6","block_type":"box","text":"for the periods indicated.","page_number":189,"box":{"x":116,"y":227,"width":189,"height":11}},{"id":"f19d6b96-4646-41a5-9f82-858fbab440b6","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries","page_number":189,"box":{"x":116,"y":258,"width":759,"height":12}},{"id":"3b7a2571-69f6-4e2f-b06e-521782f0a07e","block_type":"box","text":"and retain the balance over such discounts. At times the Distributor may reallow the entire sales","page_number":189,"box":{"x":116,"y":273,"width":717,"height":12}},{"id":"8dda739a-5513-4244-9402-7d700f041c56","block_type":"box","text":"charge to such dealers. Since securities dealers and other financial intermediaries selling front-end","page_number":189,"box":{"x":116,"y":289,"width":739,"height":12}},{"id":"7caedcc8-e2b5-4644-964a-befc2e4ad819","block_type":"box","text":"load shares of a Fund will receive a concession equal to most of the sales charge, they may be","page_number":189,"box":{"x":117,"y":304,"width":710,"height":12}},{"id":"a02b5f88-4481-4cfb-a32d-a95a0d9a161b","block_type":"box","text":"deemed to be underwriters under the Securities Act.","page_number":189,"box":{"x":116,"y":320,"width":393,"height":9}},{"id":"a4da45b4-cfd7-494b-a48d-97d0c5437641","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":189,"box":{"x":117,"y":351,"width":327,"height":12}},{"id":"d1dcfd52-b6d1-4068-a8b0-de371b65fc2b","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P","page_number":189,"box":{"x":117,"y":374,"width":715,"height":12}},{"id":"9b18bb25-e996-4d7c-bb6c-5b881b1fc691","block_type":"box","text":"Shares are available for purchase only through registered representatives of an insurance company’s","page_number":189,"box":{"x":116,"y":389,"width":758,"height":12}},{"id":"19886bc7-e56c-49e2-a0e8-d6da872fabc3","block_type":"box","text":"broker-dealer that has entered into an agreement with the Distributor to offer such shares and are","page_number":189,"box":{"x":117,"y":405,"width":729,"height":12}},{"id":"a77b2976-b6fc-4dda-9fdf-5f716d182722","block_type":"box","text":"subject to an initial sales charge. The ongoing front-end load shares’ service fees will cause Investor P","page_number":189,"box":{"x":116,"y":420,"width":766,"height":12}},{"id":"581285eb-a17b-464e-a2fd-0fbf15106511","block_type":"box","text":"Shares to have a higher expense ratio, pay lower dividends and have a lower total return than Investor","page_number":189,"box":{"x":116,"y":436,"width":766,"height":12}},{"id":"1807f106-fac3-4817-8ace-b256c3db630b","block_type":"box","text":"A Shares of the same Fund.","page_number":189,"box":{"x":116,"y":451,"width":214,"height":10}},{"id":"10d8ca6b-228e-4a7b-81db-2397f375b36f","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":189,"box":{"x":116,"y":482,"width":770,"height":12}},{"id":"ddaa3baf-fbfd-428c-8800-a6beb8f4ab70","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods","page_number":189,"box":{"x":117,"y":498,"width":757,"height":12}},{"id":"6df12d99-8525-47bc-8564-8aa4e13939af","block_type":"box","text":"indicated.","page_number":189,"box":{"x":117,"y":514,"width":75,"height":9}},{"id":"1c0450ab-5922-4f9c-991b-e8959a0ca8c4","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries","page_number":189,"box":{"x":116,"y":544,"width":759,"height":12}},{"id":"56912187-0a3d-40ba-be4e-98c4025231cd","block_type":"box","text":"and retain the balance over such discounts. At times the Distributor may reallow the entire sales","page_number":189,"box":{"x":116,"y":560,"width":717,"height":12}},{"id":"0bb5b0b6-c563-4ff6-a555-20b976385595","block_type":"box","text":"charge to such dealers. Since securities dealers and other financial intermediaries selling front-end","page_number":189,"box":{"x":116,"y":575,"width":739,"height":12}},{"id":"03f343cc-01cf-414d-a1fe-c870aa8ce4ac","block_type":"box","text":"load shares of a Fund will receive a concession equal to most of the sales charge, they may be","page_number":189,"box":{"x":117,"y":591,"width":710,"height":12}},{"id":"0dcd13c5-12d6-486a-8c4e-487d4596bfea","block_type":"box","text":"deemed to be underwriters under the Securities Act.","page_number":189,"box":{"x":116,"y":606,"width":393,"height":10}},{"id":"8f23d6fd-568d-4e1a-aeb3-88f765005a84","block_type":"box","text":"Reduced Initial Sales Charges","page_number":189,"box":{"x":117,"y":637,"width":244,"height":12}},{"id":"bcde4aa7-949e-4413-9f6e-d992c1498858","block_type":"box","text":"Certain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the","page_number":189,"box":{"x":117,"y":661,"width":737,"height":12}},{"id":"70e27930-417e-4615-9967-56c422ae21f0","block_type":"box","text":"investors and/or the reduced sales efforts necessary to obtain their investments. Financial","page_number":189,"box":{"x":117,"y":676,"width":666,"height":12}},{"id":"ed955799-53e2-4582-85fe-2289eb8e2fce","block_type":"box","text":"intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":189,"box":{"x":117,"y":692,"width":730,"height":12}},{"id":"36ddf057-cfe3-42a9-85f0-79ddf88251b4","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares","page_number":189,"box":{"x":116,"y":707,"width":754,"height":12}},{"id":"e7885195-8ba6-40d9-9b90-b0fb2da34c18","block_type":"box","text":"to another class of shares of the same Fund provided that the exchanged shares are not subject to a","page_number":189,"box":{"x":116,"y":723,"width":748,"height":12}},{"id":"073cb7f8-c035-4ff0-9936-c7189edaeccf","block_type":"box","text":"contingent deferred sales charge and that shareholders meet the eligibility requirements of the new","page_number":189,"box":{"x":116,"y":738,"width":736,"height":12}},{"id":"d7701e38-f098-41ea-8fee-5531d4fa3c29","block_type":"box","text":"share class. Certain sales load reductions and waivers may be available to customers of certain","page_number":189,"box":{"x":116,"y":754,"width":711,"height":12}},{"id":"3a85aaa9-b6d3-4d5f-825e-2fde8d1126fe","block_type":"box","text":"financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in","page_number":189,"box":{"x":116,"y":769,"width":740,"height":12}},{"id":"35ef8601-6dc8-4baf-bd3a-18079eb9c00b","block_type":"box","text":"the Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":189,"box":{"x":116,"y":785,"width":656,"height":12}},{"id":"74c2d89e-ef9e-4e50-a8ec-aaeb6a2bfeca","block_type":"box","text":"Reinvested Dividends.","page_number":189,"box":{"x":116,"y":816,"width":165,"height":9}},{"id":"71b518aa-57d5-4da4-b902-f53d2ea7741d","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":189,"box":{"x":289,"y":816,"width":583,"height":12}},{"id":"dddd1035-f415-48dc-9f9c-3c7edc2af8a0","block_type":"box","text":"reinvestment of dividends.","page_number":189,"box":{"x":117,"y":831,"width":199,"height":10}},{"id":"53ba69e3-d350-4eee-9997-f715e1e439f8","block_type":"box","text":"Right of Accumulation.","page_number":189,"box":{"x":116,"y":862,"width":166,"height":12}},{"id":"a8910538-d4db-42ca-8166-5d90ff447880","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may","page_number":189,"box":{"x":284,"y":862,"width":585,"height":12}},{"id":"61d0a892-21b8-4d29-a726-0a56c0983a17","block_type":"box","text":"be combined with the amount of the current purchase in determining whether an investor qualifies for a","page_number":189,"box":{"x":117,"y":878,"width":768,"height":12}},{"id":"f4eeeabd-0466-48f1-90f9-e03fca6a49b5","block_type":"box","text":"II-130","page_number":189,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"e0ac4e1c-47b9-4276-b62d-26afc2e03fbd","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":189,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b4b530a6-327c-4aa5-88d4-e4b7b68ba0fc","block_type":"box","text":"breakpoint and a reduced front-end sales charge: (i) the current value of an investor’s existing Investor","page_number":190,"box":{"x":117,"y":87,"width":765,"height":12}},{"id":"bc8e7faf-647f-436e-b087-becebfc3562c","block_type":"box","text":"A, Investor A1, Investor C, Investor P, Institutional, Class K and Premier Shares in most BlackRock","page_number":190,"box":{"x":116,"y":102,"width":741,"height":12}},{"id":"a413b5f2-6ba5-40cb-b353-1a8dfaee380a","block_type":"box","text":"Funds, (ii) the current value of an investor’s existing shares of certain unlisted closed-end management","page_number":190,"box":{"x":117,"y":118,"width":770,"height":12}},{"id":"b80aa7ed-d673-4c16-9cfb-96b3ed48d021","block_type":"box","text":"investment companies sponsored and advised by BlackRock or its affiliates (“Eligible Unlisted","page_number":190,"box":{"x":117,"y":134,"width":699,"height":12}},{"id":"37c2f69f-de11-4e4f-9b16-db888ab45397","block_type":"box","text":"BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock CollegeAdvantage 529","page_number":190,"box":{"x":117,"y":149,"width":717,"height":12}},{"id":"95011106-7c73-49b3-a56a-acdd9df3d6f6","block_type":"box","text":"Program by the investor or by or on behalf of the investor’s spouse and children. Financial","page_number":190,"box":{"x":117,"y":165,"width":673,"height":12}},{"id":"26281302-5b7e-4575-abea-5b0238893483","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining","page_number":190,"box":{"x":117,"y":180,"width":741,"height":12}},{"id":"b27bbc63-31f4-4c17-a72c-49634edfdf61","block_type":"box","text":"whether an investor qualifies for a breakpoint and a reduced front-end sales charge, although","page_number":190,"box":{"x":116,"y":196,"width":698,"height":12}},{"id":"ee6e07d5-c3cd-44f4-880b-09b2e89c4fc3","block_type":"box","text":"customers of the same financial intermediary will be treated similarly. In order to use this right, the","page_number":190,"box":{"x":116,"y":211,"width":732,"height":12}},{"id":"cb6f9e4d-6437-4a8d-b750-c4c3501e36c7","block_type":"box","text":"investor must alert BlackRock to the existence of any previously purchased shares. Certain funds","page_number":190,"box":{"x":117,"y":227,"width":727,"height":12}},{"id":"26a54d80-f9ce-460c-8675-32674d37a584","block_type":"box","text":"employ a “passive” management approach and attempt to match the performance of a target index as","page_number":190,"box":{"x":116,"y":242,"width":762,"height":12}},{"id":"451e6234-593a-4929-aeaa-46e8dda4d449","block_type":"box","text":"closely as possible before the deduction of Fund expenses (“Index Funds”). Although Investor A","page_number":190,"box":{"x":116,"y":258,"width":717,"height":12}},{"id":"adb68215-bc19-4f62-8caf-89ab393cd13a","block_type":"box","text":"Shares of Index Funds and BlackRock Short Obligations Fund generally are not subject to a sales","page_number":190,"box":{"x":116,"y":273,"width":732,"height":12}},{"id":"5546dd8b-e1dc-4096-b5a4-b1aed3c27f15","block_type":"box","text":"charge, an investor’s existing Investor A, Investor A1, Investor C, Investor P, Institutional, Class K and","page_number":190,"box":{"x":116,"y":289,"width":763,"height":12}},{"id":"f9c916be-2902-4c75-a757-0b591bb686f8","block_type":"box","text":"Premier Shares in the Index Funds and BlackRock Short Obligations Fund may be combined with the","page_number":190,"box":{"x":117,"y":304,"width":757,"height":12}},{"id":"fcafb147-0ead-4d06-b203-1c27225e4b71","block_type":"box","text":"amount of an investor’s current purchase in determining whether an investor qualifies for a breakpoint","page_number":190,"box":{"x":116,"y":320,"width":760,"height":12}},{"id":"6dff2a74-5404-4d78-a2e4-cedbf1beafe7","block_type":"box","text":"and a reduced front-end sales charge.","page_number":190,"box":{"x":116,"y":335,"width":289,"height":12}},{"id":"34c3c49b-65b1-4a79-b5cf-d6da2a7575ff","block_type":"box","text":"Letter of Intent.","page_number":190,"box":{"x":116,"y":361,"width":111,"height":9}},{"id":"8832b5e7-f96f-4506-8a1a-8504b986d66c","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a","page_number":190,"box":{"x":229,"y":361,"width":649,"height":12}},{"id":"4de801c9-f48e-4b57-8de0-9589253f1ffa","block_type":"box","text":"“Letter of Intent” stating the investor’s intention to make one or more of the following investments within","page_number":190,"box":{"x":116,"y":376,"width":770,"height":12}},{"id":"7dbeb1a1-3612-40e2-91e3-6a1302ab0034","block_type":"box","text":"the next 13 months which would, if bought all at once, qualify the investor for a reduced sales charge:","page_number":190,"box":{"x":116,"y":392,"width":758,"height":12}},{"id":"fb20ba52-57c9-4523-89a0-d45079eba209","block_type":"box","text":"(i) buy a specified amount of Investor A, Investor C, Investor P, Institutional, Class K and/or Premier","page_number":190,"box":{"x":117,"y":407,"width":745,"height":12}},{"id":"8011ee0e-6873-4c47-9095-3088f63c8df5","block_type":"box","text":"Shares, (ii) make an investment in one or more Eligible Unlisted BlackRock Closed-End Funds and/or","page_number":190,"box":{"x":116,"y":423,"width":759,"height":12}},{"id":"167d3ca4-2572-4691-bca2-5714fff4403c","block_type":"box","text":"(iii) make an investment through the BlackRock CollegeAdvantage 529 Program in one or more","page_number":190,"box":{"x":117,"y":438,"width":712,"height":12}},{"id":"6b41e2ad-6bb6-47ff-b130-a88511eaa314","block_type":"box","text":"BlackRock Funds. The initial investment must meet the minimum initial purchase requirement. The","page_number":190,"box":{"x":117,"y":454,"width":736,"height":12}},{"id":"e33a3951-747b-47de-8a29-1160b8c85c5b","block_type":"box","text":"13-month Letter of Intent period commences on the day that the Letter of Intent is received by the","page_number":190,"box":{"x":118,"y":469,"width":727,"height":12}},{"id":"3710ca67-9627-463c-929b-3dd8536c1921","block_type":"box","text":"Fund. The market value of current holdings in the BlackRock Funds (including Investor A, Investor C,","page_number":190,"box":{"x":117,"y":485,"width":754,"height":12}},{"id":"c0e8247a-09a9-40aa-9bb3-37b844d6845c","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds","page_number":190,"box":{"x":117,"y":500,"width":752,"height":12}},{"id":"284148a4-882d-4d42-8943-055224ba8047","block_type":"box","text":"and the BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of","page_number":190,"box":{"x":116,"y":516,"width":722,"height":12}},{"id":"0365023c-b969-4739-9435-e04e21529f8c","block_type":"box","text":"commencement that are eligible under the Right of Accumulation may be counted towards the sales","page_number":190,"box":{"x":116,"y":531,"width":747,"height":12}},{"id":"6b11d6b9-d505-4703-97fa-12afb5d94fff","block_type":"box","text":"charge reduction. The investor must notify the Fund of (i) any current holdings in the BlackRock Funds,","page_number":190,"box":{"x":116,"y":547,"width":770,"height":12}},{"id":"047b41df-9a88-48ad-a321-3b21fc5a8cbd","block_type":"box","text":"Eligible Unlisted BlackRock Closed-End Funds and/or the BlackRock CollegeAdvantage 529 Program","page_number":190,"box":{"x":117,"y":562,"width":759,"height":12}},{"id":"6e59571a-b743-4db8-a405-30e0044fb189","block_type":"box","text":"that should be counted towards the sales charge reduction and (ii) any subsequent purchases that","page_number":190,"box":{"x":116,"y":578,"width":735,"height":12}},{"id":"679d7541-d981-41ef-8e66-f06854095267","block_type":"box","text":"should be counted towards the Letter of Intent. During the term of the Letter of Intent, the Fund will","page_number":190,"box":{"x":116,"y":593,"width":737,"height":12}},{"id":"2e1e9c90-7a60-43ac-a11a-1ca7ce88b4ec","block_type":"box","text":"hold Investor A Shares and/or Investor P Shares, as applicable, representing up to 5% of the indicated","page_number":190,"box":{"x":117,"y":609,"width":765,"height":12}},{"id":"d5bcf367-278e-4917-ade4-9ffd0ad175bd","block_type":"box","text":"amount in an escrow account for payment of a higher sales load if the full amount indicated in the","page_number":190,"box":{"x":116,"y":624,"width":728,"height":13}},{"id":"40561a58-ccf5-403d-b99c-4c8cfa2e08da","block_type":"box","text":"Letter of Intent is not purchased. If the full amount indicated is not purchased within the 13-month","page_number":190,"box":{"x":117,"y":640,"width":726,"height":12}},{"id":"24ade5b8-6228-48ab-a4c1-b266dca156a4","block_type":"box","text":"period, and the investor does not pay the higher sales load within 20 days, the Fund will redeem","page_number":190,"box":{"x":117,"y":656,"width":717,"height":12}},{"id":"76812353-bbeb-4c5d-8c85-2e3b532caedb","block_type":"box","text":"enough of the Investor A Shares and/or Investor P Shares, as applicable, held in escrow to pay the","page_number":190,"box":{"x":116,"y":671,"width":735,"height":12}},{"id":"c82e7d5b-92cd-4e90-ad12-ad806da6b348","block_type":"box","text":"difference.","page_number":190,"box":{"x":116,"y":686,"width":77,"height":10}},{"id":"3c8db4ee-d52d-49f0-b653-79bd6ed38006","block_type":"box","text":"Placement Fees.","page_number":190,"box":{"x":116,"y":712,"width":124,"height":10}},{"id":"0a75ddd2-ba33-4904-8f6f-09dc1ace6b32","block_type":"box","text":"BlackRock may pay placement fees to dealers on purchases of Investor A and Investor P Shares of all","page_number":190,"box":{"x":117,"y":733,"width":759,"height":12}},{"id":"6c4d72a2-a6f1-47fe-81a8-990a9ad0cea1","block_type":"box","text":"Funds, which may depend on the policies, procedures and trading platforms of your financial","page_number":190,"box":{"x":117,"y":748,"width":685,"height":12}},{"id":"432671d0-0b50-4b2f-bb26-1dff7271ef62","block_type":"box","text":"intermediary.","page_number":190,"box":{"x":117,"y":764,"width":94,"height":12}},{"id":"caaeff1a-51af-4d95-ad9c-ce0e34ac3019","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A","page_number":190,"box":{"x":117,"y":790,"width":712,"height":12}},{"id":"281d910d-0563-4fc5-9e0a-c553dbbf10d5","block_type":"box","text":"Shares:","page_number":190,"box":{"x":116,"y":805,"width":56,"height":10}},{"id":"619c326d-0fd6-48ae-a4b2-2873e281a5ed","block_type":"box","text":"$1 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million","page_number":191,"box":{"x":150,"y":195,"width":260,"height":11}},{"id":"2bb2f1e7-3925-474d-9dd3-2b46e7a027a1","block_type":"box","text":"........","page_number":191,"box":{"x":417,"y":204,"width":65,"height":1}},{"id":"e45e29e2-1682-4d89-b738-b23e65307c8c","block_type":"box","text":"0.50%","page_number":191,"box":{"x":484,"y":196,"width":51,"height":9}},{"id":"ff5516b9-9adc-4c8d-8d85-228f464fe503","block_type":"box","text":"$15 million and above","page_number":191,"box":{"x":150,"y":210,"width":168,"height":12}},{"id":"87726252-55d6-4f9b-b17e-82582f308147","block_type":"box","text":"...................","page_number":191,"box":{"x":319,"y":219,"width":163,"height":1}},{"id":"f7a1af34-5165-4b25-90d1-3188567b3923","block_type":"box","text":"0.25%","page_number":191,"box":{"x":484,"y":211,"width":51,"height":10}},{"id":"199014f4-6c35-4d81-93f6-073e181c2da5","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds","page_number":191,"box":{"x":116,"y":242,"width":751,"height":12}},{"id":"d02fd702-e8cc-43e8-a7d0-3be5b64d63e8","block_type":"box","text":"IV, BlackRock Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical","page_number":191,"box":{"x":117,"y":258,"width":691,"height":12}},{"id":"e76fe9f7-23fc-4f02-9a30-cca39f916461","block_type":"box","text":"Opportunities Fund of BlackRock Funds","page_number":191,"box":{"x":116,"y":273,"width":296,"height":12}},{"id":"e0171e6f-31d0-4cf5-bcd8-9000be6ed262","block_type":"box","text":"SM","page_number":191,"box":{"x":414,"y":273,"width":15,"height":6}},{"id":"8433a08d-3e9c-4aed-b71b-d09c2ebb8977","block_type":"box","text":", BlackRock High Yield Portfolio, BlackRock Core Bond","page_number":191,"box":{"x":431,"y":273,"width":414,"height":12}},{"id":"f78e7b4e-9b9f-45ba-ae07-0c4022fea5d1","block_type":"box","text":"Portfolio and BlackRock Sustainable High Yield Bond Fund of BlackRock Funds V, BlackRock","page_number":191,"box":{"x":117,"y":289,"width":702,"height":12}},{"id":"e1169f28-b71f-4b61-89df-7e81830a9d20","block_type":"box","text":"Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global Bond Fund,","page_number":191,"box":{"x":116,"y":304,"width":749,"height":12}},{"id":"3c07f739-29f3-4a6f-a88c-f19458c1c815","block_type":"box","text":"Inc., the placement fees may be up to the following amounts:","page_number":191,"box":{"x":117,"y":320,"width":456,"height":12}},{"id":"ee2dbafc-fe7a-4e40-ab89-fefb42efc46e","block_type":"box","text":"$1 million but less than $3 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a","page_number":193,"box":{"x":116,"y":304,"width":750,"height":12}},{"id":"aaca8a1f-9347-4f4c-a476-2ac151a56a35","block_type":"box","text":"BlackRock IRA through an account directly with the Fund; or purchases by IRA programs that are","page_number":193,"box":{"x":117,"y":320,"width":728,"height":12}},{"id":"15bebc48-a7a5-4378-a1cd-317601d2ea3c","block_type":"box","text":"sponsored by financial intermediary firms provided the financial intermediary firm has entered into a","page_number":193,"box":{"x":116,"y":335,"width":744,"height":12}},{"id":"1af97506-2307-4f29-89cc-ebea4b3afadd","block_type":"box","text":"Class A or Investor P NAV agreement, as applicable, with respect to such program with the Distributor;","page_number":193,"box":{"x":117,"y":351,"width":768,"height":12}},{"id":"a791b677-caaf-4d66-9d5d-841051cc0b1a","block_type":"box","text":"(c) insurance company separate accounts; (d) registered investment advisers, trust companies and","page_number":193,"box":{"x":117,"y":366,"width":740,"height":12}},{"id":"bffe85d3-3d0e-452d-8c7a-748ed4bdcd65","block_type":"box","text":"bank trust departments exercising discretionary investment authority with respect to amounts to be","page_number":193,"box":{"x":117,"y":382,"width":736,"height":12}},{"id":"4df45d30-d42b-4fd9-bcae-b8b54fb84a51","block_type":"box","text":"invested in a Fund; (e) persons participating in a fee-based program (such as a wrap account) under","page_number":193,"box":{"x":117,"y":397,"width":750,"height":12}},{"id":"65399b90-1cc0-4262-b676-c37d1e288e08","block_type":"box","text":"which they pay advisory fees to a broker-dealer or other financial institution; (f) financial intermediaries","page_number":193,"box":{"x":116,"y":413,"width":764,"height":12}},{"id":"d7bff8f0-cfae-48a5-9b67-2683bae860c5","block_type":"box","text":"who have entered into an agreement with the Distributor and have been approved by the Distributor to","page_number":193,"box":{"x":116,"y":428,"width":764,"height":12}},{"id":"9557f0c9-04ca-4710-8d09-dcf9a1041c31","block_type":"box","text":"offer Fund shares to self-directed investment brokerage accounts that may or may not charge a","page_number":193,"box":{"x":116,"y":444,"width":714,"height":12}},{"id":"e45baf58-8bd7-41f9-9c1a-ee9b421e0d2a","block_type":"box","text":"transaction fee; (g) state sponsored 529 college savings plans and rollovers of such 529 plans into","page_number":193,"box":{"x":116,"y":459,"width":736,"height":12}},{"id":"b87c45b4-01d0-4eef-93c1-5f6cd4f2fe32","block_type":"box","text":"Roth IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only,","page_number":193,"box":{"x":117,"y":475,"width":753,"height":12}},{"id":"d4d0f364-cfdc-4e47-9db4-0ae0dfe2080c","block_type":"box","text":"accounts opened directly with a Fund that do not have a financial intermediary associated with the","page_number":193,"box":{"x":116,"y":490,"width":733,"height":12}},{"id":"720855fc-761c-432c-8ddc-35812c393d88","block_type":"box","text":"account; and (i) persons involuntarily liquidated from a Fund, who within 60 days of liquidation buy new","page_number":193,"box":{"x":116,"y":506,"width":769,"height":12}},{"id":"be62ab99-5164-42ff-96af-64f4e67e7f6c","block_type":"box","text":"shares of another BlackRock Fund (but only up to the amount that was liquidated). The following","page_number":193,"box":{"x":116,"y":521,"width":721,"height":12}},{"id":"9a22d998-97d4-416f-9d94-d42d8c0ea6e7","block_type":"box","text":"persons associated with the Funds, the Fund’s Manager, Sub-Advisers, Transfer Agent, Distributor,","page_number":193,"box":{"x":117,"y":537,"width":743,"height":12}},{"id":"44874246-ead8-4819-8d4f-af84a74f6c2d","block_type":"box","text":"fund accounting agents, Barclays PLC and their affiliates may buy Investor A or Investor P Shares of","page_number":193,"box":{"x":116,"y":552,"width":752,"height":12}},{"id":"aaa35ee5-4118-47f4-bcca-b5ad71ad4a4b","block_type":"box","text":"each of the Funds without paying a sales charge to the extent permitted by these firms including:","page_number":193,"box":{"x":116,"y":568,"width":723,"height":12}},{"id":"05ca8b73-139d-444c-b782-1f6d2d90190e","block_type":"box","text":"(a) officers, directors and partners; (b) employees and retirees; (c) employees or registered","page_number":193,"box":{"x":117,"y":583,"width":680,"height":12}},{"id":"91453206-510d-4c10-9a1b-8f07ea870923","block_type":"box","text":"representatives of firms who have entered into selling agreements to distribute shares of BlackRock","page_number":193,"box":{"x":117,"y":599,"width":745,"height":12}},{"id":"1376d157-2ca1-4a2d-b535-bd91565ef1e1","block_type":"box","text":"advised funds; (d) immediate family members of such persons (“immediate family members” shall be","page_number":193,"box":{"x":116,"y":614,"width":753,"height":12}},{"id":"4b3aed1e-9c05-4155-8dc3-fc6bd11fee18","block_type":"box","text":"defined as the investor, the investor’s spouse or domestic partner, children, parents and siblings); and","page_number":193,"box":{"x":116,"y":630,"width":761,"height":12}},{"id":"e0f3cc13-91b2-46b1-b769-0692234a8329","block_type":"box","text":"(e) any trust, pension, profit-sharing or other benefit plan for any of the persons set forth in (a) through","page_number":193,"box":{"x":117,"y":645,"width":762,"height":12}},{"id":"c3d2ebee-d343-4c05-adac-86ab436b5ce2","block_type":"box","text":"(d). Investors who qualify for any of these exemptions from the sales charge should purchase","page_number":193,"box":{"x":117,"y":661,"width":692,"height":12}},{"id":"20c18bf1-388e-4129-970c-4b9cce787131","block_type":"box","text":"Investor A or Investor P Shares. In addition, a sales charge waiver may be available for investors","page_number":193,"box":{"x":117,"y":676,"width":719,"height":12}},{"id":"dc81696d-c7bf-430f-85d4-d710aa470de3","block_type":"box","text":"exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock","page_number":193,"box":{"x":116,"y":692,"width":730,"height":12}},{"id":"f46bdeef-a861-4559-8a88-9625d510cbe8","block_type":"box","text":"Fund, or exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another","page_number":193,"box":{"x":117,"y":707,"width":713,"height":12}},{"id":"8587fecb-939b-4378-b027-4ce3b97db46f","block_type":"box","text":"BlackRock Fund, through an intermediary-processed exchange, provided that the investor had","page_number":193,"box":{"x":117,"y":723,"width":699,"height":12}},{"id":"32a6be89-1a65-4e5b-933a-65f0eac97786","block_type":"box","text":"previously paid a sales charge with respect to such shares. The availability of Investor A or Investor P","page_number":193,"box":{"x":117,"y":738,"width":753,"height":12}},{"id":"c446e583-511a-44f7-bce8-c0a11d461896","block_type":"box","text":"Shares sales charge waivers may depend upon the policies, procedures and trading platforms of your","page_number":193,"box":{"x":116,"y":754,"width":756,"height":12}},{"id":"372646fa-3694-42c3-88a4-efdf0428d9e7","block_type":"box","text":"financial intermediary; consult your financial adviser.","page_number":193,"box":{"x":116,"y":769,"width":387,"height":12}},{"id":"9849e7ee-20f2-46e2-9865-69bcbd3df521","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi","page_number":193,"box":{"x":117,"y":799,"width":736,"height":13}},{"id":"259cc4d8-69e7-4d6e-aaa6-1afccf1591a4","block_type":"box","text":"Asset Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock","page_number":193,"box":{"x":116,"y":816,"width":720,"height":12}},{"id":"091155af-371d-4bda-8fd1-bd5ed37e4c87","block_type":"box","text":"Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond","page_number":193,"box":{"x":117,"y":831,"width":755,"height":11}},{"id":"e52334f4-3709-4afa-9612-9b74a992abf3","block_type":"box","text":"Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of BlackRock","page_number":193,"box":{"x":117,"y":847,"width":754,"height":12}},{"id":"85d6c0a0-f92f-4fd5-87ce-80ab6bbc1a92","block_type":"box","text":"Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":193,"box":{"x":117,"y":862,"width":754,"height":12}},{"id":"f2c99a15-9464-401f-9481-df050b519c98","block_type":"box","text":"Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust,","page_number":193,"box":{"x":117,"y":878,"width":693,"height":12}},{"id":"80b7bfbc-2c5a-4bd1-874d-07829087abbf","block_type":"box","text":"II-134","page_number":193,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"f6840a90-0e48-4718-83c0-cafff1ed4352","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":193,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4299b2e8-cf26-43a1-a2d7-e483d2014e72","block_type":"box","text":"BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":194,"box":{"x":117,"y":87,"width":736,"height":12}},{"id":"99e78ba6-12b2-4ea6-983a-3cb718a4873c","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and","page_number":194,"box":{"x":117,"y":102,"width":761,"height":13}},{"id":"1fd93783-b020-4e72-bdc6-aa1114ce435b","block_type":"box","text":"BlackRock Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust,","page_number":194,"box":{"x":117,"y":118,"width":714,"height":12}},{"id":"bb351f08-9a74-4d25-8f43-2321c075f7a8","block_type":"box","text":"BlackRock Event Driven Equity Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock","page_number":194,"box":{"x":117,"y":133,"width":770,"height":13}},{"id":"f224eaca-ade3-443a-8d31-013875628605","block_type":"box","text":"Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock Income Fund and","page_number":194,"box":{"x":117,"y":149,"width":757,"height":12}},{"id":"237da9e5-7f50-4b3e-b618-049ec77e163f","block_type":"box","text":"BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more in Investor A or","page_number":194,"box":{"x":117,"y":165,"width":742,"height":12}},{"id":"88f950bf-7157-4c62-beff-571934a8af48","block_type":"box","text":"Investor P Shares, as applicable, you may not pay an initial sales charge. However, if you redeem your","page_number":194,"box":{"x":117,"y":180,"width":769,"height":12}},{"id":"1c26f5b6-de02-4237-89ec-e5d4b8ed6a6e","block_type":"box","text":"Investor A or Investor P Shares, as applicable, within 18 months after purchase (a shorter holding","page_number":194,"box":{"x":117,"y":196,"width":729,"height":12}},{"id":"04aa1988-f350-48b4-9c20-5bb1b220c943","block_type":"box","text":"period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":194,"box":{"x":117,"y":211,"width":663,"height":12}},{"id":"e3491149-3a72-4e2e-96fe-7b2aad3ed3dd","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to certain redemptions of Investor A Shares of the","page_number":194,"box":{"x":116,"y":242,"width":753,"height":12}},{"id":"e6c7ec56-2913-4b47-883d-486827ac6e92","block_type":"box","text":"Index Funds and BlackRock Short Obligations Fund purchased in an exchange transaction for","page_number":194,"box":{"x":117,"y":258,"width":703,"height":12}},{"id":"d3303656-8336-49bb-b6bd-fcff0f5af597","block_type":"box","text":"Investor A Shares of a portfolio advised by BlackRock or its affiliates where no initial sales charge was","page_number":194,"box":{"x":117,"y":273,"width":763,"height":12}},{"id":"3687bf59-aed8-4f61-a1f2-2380688b2d70","block_type":"box","text":"paid at the time of purchase of such fund (an “Investor A Load-Waived BlackRock Portfolio”) as part of","page_number":194,"box":{"x":117,"y":289,"width":763,"height":12}},{"id":"a4caa5b5-1227-4401-b733-cc5bb7376172","block_type":"box","text":"an investment of $1,000,000 (lesser amounts may apply depending on the Investor A Load-Waived","page_number":194,"box":{"x":116,"y":303,"width":742,"height":13}},{"id":"1dd82219-a49e-4900-8254-07de222c8d49","block_type":"box","text":"BlackRock Portfolio) or more. The Investor A Shares deferred sales charge is only charged upon","page_number":194,"box":{"x":117,"y":320,"width":722,"height":12}},{"id":"134d7312-d412-49ca-b92f-4e9424a30de2","block_type":"box","text":"redemptions of Investor A Shares within 18 months after you originally acquired such Investor A","page_number":194,"box":{"x":117,"y":335,"width":716,"height":12}},{"id":"33eff6cd-40c0-4a06-b30c-06eb64b5b641","block_type":"box","text":"Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply","page_number":194,"box":{"x":116,"y":351,"width":708,"height":12}},{"id":"bb9be4f5-b435-4522-8733-8f241066032d","block_type":"box","text":"depending on the Investor A Load-Waived BlackRock Portfolio), unless you qualify for a waiver. There","page_number":194,"box":{"x":116,"y":366,"width":763,"height":12}},{"id":"453d2421-bd44-4344-a106-14c3a2b19eed","block_type":"box","text":"is no deferred sales charge charged on redemptions if you have owned your Investor A Shares for","page_number":194,"box":{"x":117,"y":382,"width":733,"height":12}},{"id":"fb365665-b7f8-4410-a726-4d37b5c70ea3","block_type":"box","text":"more than 18 months (or for a shorter holding period, as applicable) (as measured from your original","page_number":194,"box":{"x":117,"y":397,"width":749,"height":12}},{"id":"60658d43-9725-4330-a9b6-5e32b869d311","block_type":"box","text":"purchase of Investor A Shares that you exchanged into Investor A Shares of the Index Fund or","page_number":194,"box":{"x":117,"y":413,"width":707,"height":12}},{"id":"b31838e4-3641-47b8-ac55-30c1906fc1b5","block_type":"box","text":"BlackRock Short Obligations Fund).","page_number":194,"box":{"x":117,"y":428,"width":270,"height":12}},{"id":"f14e8a33-9d72-49e7-9b64-d5748f089c65","block_type":"box","text":"The deferred sales charge on Investor A or Investor P Shares, as applicable, is not charged in connection","page_number":194,"box":{"x":116,"y":459,"width":764,"height":12}},{"id":"85048560-7a74-4811-b264-70def33fdb3c","block_type":"box","text":"with: (a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored","page_number":194,"box":{"x":116,"y":475,"width":752,"height":12}},{"id":"33b198b3-8e96-42b7-9b25-2c4c5991e6a5","block_type":"box","text":"retirement plans and rollovers of current investments in a Fund through such plans; (b) exchanges","page_number":194,"box":{"x":117,"y":490,"width":709,"height":12}},{"id":"a4b19d10-1d8a-495a-99c7-9dc86dec1abe","block_type":"box","text":"described in “Exchange Privilege” below; (c) redemptions made in connection with minimum required","page_number":194,"box":{"x":116,"y":506,"width":730,"height":12}},{"id":"bb60f760-e0c9-4b78-ae2b-54d01509de4c","block_type":"box","text":"distributions from IRA and 403(b)(7) accounts due to the shareholder reaching the applicable age","page_number":194,"box":{"x":116,"y":521,"width":704,"height":12}},{"id":"0fb0e753-34d4-4756-b9fd-e9221b4d6d94","block_type":"box","text":"triggering such distributions; (d) redemptions made with respect to certain retirement plans sponsored by a","page_number":194,"box":{"x":116,"y":537,"width":770,"height":12}},{"id":"e9319a0a-ea78-49f8-95d6-35581922b44a","block_type":"box","text":"Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a shareholder’s death or, if later, the","page_number":194,"box":{"x":117,"y":552,"width":768,"height":12}},{"id":"775d6b4d-f0b6-48c1-b8a5-94c876c3a743","block_type":"box","text":"receipt of a certified probate settlement (including in connection with the distribution of account assets to a","page_number":194,"box":{"x":117,"y":568,"width":765,"height":12}},{"id":"49e41d22-1b64-476e-96ea-1841d2de3c06","block_type":"box","text":"beneficiary of the decedent) or (ii) in connection with a shareholder’s disability (as defined in the Code)","page_number":194,"box":{"x":117,"y":583,"width":740,"height":12}},{"id":"d7d773a7-9953-42a8-8df3-32d2521d2668","block_type":"box","text":"subsequent to the purchase of Investor A or Investor P Shares; (f) involuntary redemptions of Investor A or","page_number":194,"box":{"x":116,"y":599,"width":771,"height":12}},{"id":"64ed4f2f-4f20-4d20-bad2-4b3eb9df702f","block_type":"box","text":"Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":194,"box":{"x":117,"y":614,"width":687,"height":12}},{"id":"77084420-0a69-44c6-b57b-229cccd1ce05","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon","page_number":194,"box":{"x":116,"y":630,"width":738,"height":12}},{"id":"3dd0ea68-c7b4-4124-90a6-da0227e966f3","block_type":"box","text":"Investment Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can","page_number":194,"box":{"x":117,"y":645,"width":734,"height":12}},{"id":"aeca0b31-f444-4d48-a3c5-7a6596673581","block_type":"box","text":"demonstrate hardship, in the absolute discretion of a Fund.","page_number":194,"box":{"x":116,"y":661,"width":423,"height":12}},{"id":"ac30ad26-fec7-4c9b-b8c6-8100339ab96b","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a","page_number":194,"box":{"x":116,"y":692,"width":740,"height":12}},{"id":"f6e91fc9-8a5a-4dae-87dc-05adb9eff7bd","block_type":"box","text":"placement fee, the Fund may, at its own discretion, waive the CDSC related to purchases of","page_number":194,"box":{"x":117,"y":707,"width":683,"height":12}},{"id":"1332c73f-8acb-4e07-9a88-3049ca0d03e4","block_type":"box","text":"$1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income","page_number":194,"box":{"x":116,"y":722,"width":745,"height":13}},{"id":"2450bda1-0501-479a-8c87-56c584c88a14","block_type":"box","text":"Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative","page_number":194,"box":{"x":117,"y":738,"width":727,"height":12}},{"id":"4ebcce33-3154-4eca-9278-d9916daa7f47","block_type":"box","text":"Value Fund of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc.,","page_number":194,"box":{"x":116,"y":754,"width":719,"height":11}},{"id":"97023883-02e4-49c6-9688-bcfb41f41c16","block_type":"box","text":"BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of BlackRock Municipal","page_number":194,"box":{"x":117,"y":769,"width":740,"height":12}},{"id":"d0393ffb-2708-4835-b050-85409453897b","block_type":"box","text":"Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":194,"box":{"x":117,"y":785,"width":709,"height":12}},{"id":"946f9e87-3451-4187-b0fd-4c8df345269d","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock","page_number":194,"box":{"x":117,"y":800,"width":736,"height":12}},{"id":"ab04f762-62e0-4de9-a6e9-897c46fe6c82","block_type":"box","text":"California Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock","page_number":194,"box":{"x":117,"y":816,"width":732,"height":12}},{"id":"8606745a-189a-4bf9-bc3a-6fb0022c6869","block_type":"box","text":"New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":194,"box":{"x":117,"y":831,"width":761,"height":12}},{"id":"699f7b68-892f-407a-8225-76215370037e","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event","page_number":194,"box":{"x":117,"y":847,"width":762,"height":12}},{"id":"7cf79918-ebb9-47a9-955a-5ea134b39e9b","block_type":"box","text":"Driven Equity Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration","page_number":194,"box":{"x":117,"y":861,"width":742,"height":13}},{"id":"29eebd23-d5d7-446b-ba75-8849cbde0d81","block_type":"box","text":"Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock","page_number":194,"box":{"x":117,"y":878,"width":738,"height":12}},{"id":"5182c674-1dc5-45fa-9974-2f0ba3a305f6","block_type":"box","text":"II-135","page_number":194,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"be7eae19-183b-4769-89dd-c75bd4bd5541","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":194,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0fab64ea-254f-41ed-8021-595090cc82c9","block_type":"box","text":"Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or Investor P","page_number":195,"box":{"x":116,"y":87,"width":740,"height":12}},{"id":"99de099c-8d4d-4c5b-8420-5873ea6f024f","block_type":"box","text":"Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":195,"box":{"x":116,"y":102,"width":706,"height":13}},{"id":"a58cd2a0-7415-4900-abfc-14bff083c4f9","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":195,"box":{"x":117,"y":118,"width":326,"height":12}},{"id":"03808107-ee77-4563-b8a7-170b8937b74f","block_type":"box","text":"Investor A and Investor P Shares are also available at NAV to investors that, for regulatory reasons,","page_number":195,"box":{"x":117,"y":149,"width":746,"height":12}},{"id":"24512c3b-fd8b-4c94-844b-6db643d0440f","block_type":"box","text":"are required to transfer investment positions from a foreign registered investment company advised by","page_number":195,"box":{"x":116,"y":165,"width":765,"height":12}},{"id":"9cf09fdb-3596-4d3d-b398-9a1c6cf4495f","block_type":"box","text":"BlackRock or its affiliates to a U.S. registered BlackRock-advised fund.","page_number":195,"box":{"x":117,"y":180,"width":530,"height":12}},{"id":"46d927ed-84ee-467a-ab47-87828a6fafec","block_type":"box","text":"Acquisition of Certain Investment Companies.","page_number":195,"box":{"x":115,"y":211,"width":340,"height":12}},{"id":"5b3e1b63-6bf6-4520-aa3d-e82f1446d937","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV","page_number":195,"box":{"x":456,"y":211,"width":432,"height":12}},{"id":"abfe503f-6dc1-4134-98b7-41658711b301","block_type":"box","text":"in connection with the acquisition of the assets of, or merger or consolidation with, a personal holding","page_number":195,"box":{"x":117,"y":227,"width":755,"height":12}},{"id":"b6692794-50c3-443d-9c4a-e45ee0611715","block_type":"box","text":"company or a public or private investment company.","page_number":195,"box":{"x":116,"y":242,"width":394,"height":12}},{"id":"88b97415-6230-4f31-8f8c-416838b70890","block_type":"box","text":"Purchases Through Certain Financial Intermediaries.","page_number":195,"box":{"x":116,"y":273,"width":392,"height":12}},{"id":"025a9d17-fe0e-4b6e-9065-a494d5036717","block_type":"box","text":"Reduced sales charges may be applicable for","page_number":195,"box":{"x":509,"y":273,"width":350,"height":12}},{"id":"ad474362-9a02-46b8-89f4-ba8ca382ffd6","block_type":"box","text":"purchases of Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers,","page_number":195,"box":{"x":117,"y":289,"width":764,"height":12}},{"id":"460ca77f-7657-4209-88a8-612edc62698d","block_type":"box","text":"selected securities dealers and other financial intermediaries that meet and adhere to standards","page_number":195,"box":{"x":116,"y":304,"width":717,"height":10}},{"id":"db1658f3-47a9-4962-9a10-72e0e9657385","block_type":"box","text":"established by the Manager from time to time.","page_number":195,"box":{"x":116,"y":320,"width":346,"height":12}},{"id":"f41dd8ec-6d4a-4f64-a32f-1696258e6ffd","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":195,"box":{"x":117,"y":351,"width":445,"height":12}},{"id":"610bbe8d-8f3d-4edf-b0a2-4f88492af37f","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are","page_number":195,"box":{"x":117,"y":374,"width":762,"height":12}},{"id":"fa29b589-e605-43c6-be53-955b0965996a","block_type":"box","text":"uncertain as to the length of time they intend to hold their assets in a Fund. If you select Investor C","page_number":195,"box":{"x":117,"y":389,"width":736,"height":12}},{"id":"feaf0645-bb07-45ef-9eea-8d63356c46fa","block_type":"box","text":"Shares, you do not pay an initial sales charge at the time of purchase. A Fund will not accept a","page_number":195,"box":{"x":116,"y":405,"width":708,"height":12}},{"id":"e520ff0b-fcdb-4790-bf44-2479b4206c68","block_type":"box","text":"purchase order of $500,000 or more for Investor C Shares (may be lower on funds that have set a","page_number":195,"box":{"x":117,"y":420,"width":732,"height":12}},{"id":"f9cad433-0d4f-45f3-b394-c5faf368e01f","block_type":"box","text":"lower breakpoint for NAV). Your financial intermediary may set a lower maximum for Investor C","page_number":195,"box":{"x":117,"y":436,"width":711,"height":12}},{"id":"2a7e3a7e-11ff-4bda-8c2b-dd0bf58203ef","block_type":"box","text":"Shares.","page_number":195,"box":{"x":116,"y":451,"width":62,"height":10}},{"id":"524fef22-228f-4636-be11-e9abfa70342b","block_type":"box","text":"Investor C Shares are not available in accounts opened or held directly with a Fund that do not have a","page_number":195,"box":{"x":117,"y":482,"width":762,"height":12}},{"id":"fdbc18a4-4138-4a46-a923-cf6e8e514a95","block_type":"box","text":"financial intermediary associated with the account.","page_number":195,"box":{"x":116,"y":498,"width":379,"height":12}},{"id":"181f95cf-b72c-4bdb-b62c-2ca5b5715f52","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":195,"box":{"x":117,"y":529,"width":700,"height":12}},{"id":"19c9a543-fe03-48fd-a46e-40c85d7fe73b","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for","page_number":195,"box":{"x":116,"y":560,"width":771,"height":12}},{"id":"80f4d886-1bd7-4e4c-9725-37fc5cac100f","block_type":"box","text":"the reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution","page_number":195,"box":{"x":116,"y":575,"width":767,"height":12}},{"id":"c032dcb2-16b8-4c01-b592-915835723803","block_type":"box","text":"fees; however, these fees potentially may be offset to the extent any return is realized on the additional","page_number":195,"box":{"x":116,"y":591,"width":769,"height":12}},{"id":"8ceffbb7-f782-4078-a640-e108fa02f0df","block_type":"box","text":"funds initially invested in CDSC shares.","page_number":195,"box":{"x":116,"y":606,"width":298,"height":12}},{"id":"540df94a-9375-44f7-a33e-b3e20f2cffff","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares","page_number":195,"box":{"x":117,"y":637,"width":758,"height":12}},{"id":"6d64d7c0-5502-49ff-8c9a-d0fa73e90335","block_type":"box","text":"at the time of purchase from its own funds. Proceeds from the CDSC and the distribution fee are paid","page_number":195,"box":{"x":116,"y":653,"width":757,"height":12}},{"id":"64b835c3-28c2-4fe3-b245-93dd820ca980","block_type":"box","text":"to the Distributor and are used by the Distributor to defray the expenses of securities dealers or other","page_number":195,"box":{"x":116,"y":668,"width":751,"height":12}},{"id":"5fbf3417-8899-4f96-9ebb-05c062cfbb87","block_type":"box","text":"financial intermediaries related to providing distribution-related services to each Fund in connection","page_number":195,"box":{"x":116,"y":684,"width":735,"height":12}},{"id":"e3264be6-00e7-4cd8-a547-0caf3b22c1f9","block_type":"box","text":"with the sale of the CDSC shares. The combination of the CDSC and the ongoing distribution fee","page_number":195,"box":{"x":116,"y":699,"width":719,"height":13}},{"id":"32f6923c-55e9-4951-8dfe-135c184bf25e","block_type":"box","text":"facilitates the ability of each Fund to sell the CDSC shares without a sales charge being deducted at","page_number":195,"box":{"x":116,"y":715,"width":743,"height":12}},{"id":"8d1a6b07-e6c1-4b7b-bb59-271b18b8ed39","block_type":"box","text":"the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below. Imposition of the","page_number":195,"box":{"x":116,"y":730,"width":742,"height":13}},{"id":"69e4aeaa-41b1-4bfc-a682-c31dc873d170","block_type":"box","text":"CDSC and the distribution fee on CDSC shares is limited by FINRA (as defined below) asset-based","page_number":195,"box":{"x":117,"y":746,"width":737,"height":12}},{"id":"20c9f7bd-c4f4-4f15-b696-4641ac79df8c","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":195,"box":{"x":116,"y":761,"width":642,"height":13}},{"id":"ad1da8fe-9b12-488f-b68b-fa6037056b5e","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold","page_number":195,"box":{"x":117,"y":792,"width":750,"height":13}},{"id":"efb66682-83ab-4246-aed7-a9e16d483b04","block_type":"box","text":"by them plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a","page_number":195,"box":{"x":117,"y":808,"width":751,"height":12}},{"id":"ee5d6292-d353-42a5-a1f3-2456cb498eba","block_type":"box","text":"commission in connection with sales of Investor C Shares to certain employer-sponsored retirement","page_number":195,"box":{"x":116,"y":823,"width":741,"height":13}},{"id":"f5d2cd0f-e210-4efc-bbb8-1b0d2b01e711","block_type":"box","text":"plans sponsored by the Fund, BlackRock or its affiliates, but may receive fees under the Distribution","page_number":195,"box":{"x":117,"y":839,"width":746,"height":12}},{"id":"acddeaa5-19d7-409c-889a-bfbd9d1389c8","block_type":"box","text":"and Service Plan. These commissions and payments may be different than the reallowances,","page_number":195,"box":{"x":116,"y":854,"width":699,"height":13}},{"id":"4dd883ec-ae4c-4698-8a34-d8969c8dda63","block_type":"box","text":"placement fees and commissions paid to dealers in connection with sales of Investor A, Investor A1","page_number":195,"box":{"x":117,"y":870,"width":744,"height":12}},{"id":"c9dae2ec-1024-433e-bb4d-9e15b307f553","block_type":"box","text":"II-136","page_number":195,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"02187c94-af46-4dcf-b39a-0d37bfc88e52","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":195,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3bb220b7-d938-4184-bae7-0433ffea15bb","block_type":"box","text":"and Investor P Shares. These may depend upon the policies, procedures and trading platforms of your","page_number":196,"box":{"x":116,"y":87,"width":768,"height":12}},{"id":"8a8b6a4a-e037-45b8-b240-5634547ab62c","block_type":"box","text":"financial intermediary; consult your financial adviser.","page_number":196,"box":{"x":116,"y":102,"width":393,"height":13}},{"id":"6f017ca5-2311-41ab-afc4-aa341c2e606d","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective","page_number":196,"box":{"x":117,"y":131,"width":664,"height":12}},{"id":"7e523774-b7f9-43ee-a1f4-78cefdc554aa","block_type":"box","text":"November 23, 2020, Investor C Shares held for approximately eight years will be converted into","page_number":196,"box":{"x":117,"y":146,"width":714,"height":12}},{"id":"58547abb-c386-4526-bbc5-9ae5af115c5d","block_type":"box","text":"Investor A Shares, as set forth in each Fund’s Prospectus. In addition, accounts that do not have a","page_number":196,"box":{"x":117,"y":162,"width":736,"height":12}},{"id":"06d984e7-50f2-4145-abf0-c6dbff42c2aa","block_type":"box","text":"financial intermediary associated with them are not eligible to hold Investor C Shares, and any Investor","page_number":196,"box":{"x":116,"y":177,"width":768,"height":12}},{"id":"0226fa56-caad-450b-b6ed-95fe6bd68dca","block_type":"box","text":"C Shares held in such accounts will be automatically converted to Investor A Shares.","page_number":196,"box":{"x":117,"y":193,"width":635,"height":12}},{"id":"2f026f58-24ad-4699-bd3e-7c62228fe7d3","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":196,"box":{"x":117,"y":221,"width":404,"height":10}},{"id":"07f443bd-018b-43bd-9297-05487a026938","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor","page_number":196,"box":{"x":117,"y":243,"width":763,"height":12}},{"id":"a0c5459f-592a-4f23-9056-6a6f2a741606","block_type":"box","text":"C Shares of each Fund will convert automatically into Investor A Shares of that Fund (the “Investor","page_number":196,"box":{"x":117,"y":259,"width":736,"height":12}},{"id":"01d64ff9-0e33-4986-acfe-90df91e7b8d4","block_type":"box","text":"C 8-Year Conversion”). Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the","page_number":196,"box":{"x":117,"y":274,"width":770,"height":12}},{"id":"d705660e-5c25-4519-91e1-64527c83dd92","block_type":"box","text":"“Successor Funds”) pursuant to reorganizations which occurred in September 2018. The holding","page_number":196,"box":{"x":116,"y":290,"width":722,"height":12}},{"id":"bd9ece48-9f51-4ec2-8772-2e440e0ca02c","block_type":"box","text":"period for Investor C Shares of Successor Funds includes the period such shares were held in the","page_number":196,"box":{"x":117,"y":305,"width":732,"height":12}},{"id":"8eb9f7c1-597d-47b9-8920-a13ab3997766","block_type":"box","text":"respective Predecessor Fund. It is the financial intermediary’s responsibility to ensure that the","page_number":196,"box":{"x":117,"y":321,"width":699,"height":12}},{"id":"2af5d8a1-1e76-4956-985a-2a8b0e93c1af","block_type":"box","text":"shareholder is credited with the proper holding period. As of the Effective Date, certain financial","page_number":196,"box":{"x":116,"y":336,"width":713,"height":12}},{"id":"df7dad1f-c409-4750-be5a-a965da8f6bf7","block_type":"box","text":"intermediaries, including group retirement recordkeeping platforms, may not have been tracking such","page_number":196,"box":{"x":117,"y":352,"width":755,"height":12}},{"id":"4130b52b-c2ec-4ba2-a77e-5e4da93e8e65","block_type":"box","text":"holding periods and therefore may not be able to process such conversions. In such instances,","page_number":196,"box":{"x":117,"y":367,"width":708,"height":12}},{"id":"e6ec1ebe-253a-4cf6-8138-ea6f8e926889","block_type":"box","text":"Investor C Shares held as of the Effective Date will automatically convert to Investor A Shares","page_number":196,"box":{"x":117,"y":383,"width":702,"height":12}},{"id":"d3731930-b4f4-4289-a32e-f68feba49376","block_type":"box","text":"approximately eight years after the Effective Date. If, as of November 23, 2028 (eight years after the","page_number":196,"box":{"x":116,"y":398,"width":749,"height":12}},{"id":"02fc684d-2b57-4baf-ae28-30f2041429e0","block_type":"box","text":"Effective Date), a financial intermediary has not implemented systems or procedures to track holding","page_number":196,"box":{"x":117,"y":414,"width":751,"height":12}},{"id":"5a551fd9-df67-4fbb-875e-b13f50c8501d","block_type":"box","text":"periods commencing from the Effective Date, shareholders holding Investor C Shares through such","page_number":196,"box":{"x":117,"y":429,"width":742,"height":12}},{"id":"20c4ba4d-943b-49c2-b4ac-bafaaf288ff8","block_type":"box","text":"financial intermediary will no longer be eligible to hold Investor C Shares and any such shares will","page_number":196,"box":{"x":116,"y":445,"width":729,"height":12}},{"id":"45244d9a-cd1d-4af9-a803-b3e61ed992b8","block_type":"box","text":"convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":196,"box":{"x":116,"y":460,"width":597,"height":12}},{"id":"ca9414fe-30ed-4df1-89d6-9ca619751dbc","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to","page_number":196,"box":{"x":117,"y":489,"width":756,"height":12}},{"id":"8cc21ab2-582c-4bc4-9319-c9cb04645d48","block_type":"box","text":"hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically","page_number":196,"box":{"x":117,"y":504,"width":704,"height":12}},{"id":"e193df54-8e91-4eaa-a588-720699079cce","block_type":"box","text":"converted into Investor A Shares (the “Investor C Direct Accounts Conversion” and together with the","page_number":196,"box":{"x":116,"y":520,"width":749,"height":12}},{"id":"df9aa8c2-b2c4-4159-85c8-90ef0af71189","block_type":"box","text":"Investor C 8-Year Conversion, the “Investor C Conversions”).","page_number":196,"box":{"x":117,"y":535,"width":459,"height":12}},{"id":"053e5496-2a6c-4abe-837b-367c5513bece","block_type":"box","text":"The Investor C Conversions will occur at least once each month (on the “Investor C Conversion Date”)","page_number":196,"box":{"x":116,"y":563,"width":765,"height":13}},{"id":"5124788f-61d1-431b-8024-139158d5de52","block_type":"box","text":"on the basis of the relative NAV of the shares of the two applicable classes on the Investor C","page_number":196,"box":{"x":116,"y":579,"width":694,"height":12}},{"id":"3a647f6b-a840-4e8c-9fa8-daf45794aa2f","block_type":"box","text":"Conversion Date, without the imposition of any sales load, fee or other charge. The Investor C","page_number":196,"box":{"x":117,"y":594,"width":702,"height":13}},{"id":"7ec53786-b26b-411b-993a-53c591b7ab21","block_type":"box","text":"Conversions will not be deemed a purchase or sale of the shares for U.S. federal income tax purposes.","page_number":196,"box":{"x":117,"y":610,"width":770,"height":12}},{"id":"849c9884-779a-4379-94f7-1288e91b0232","block_type":"box","text":"Shares acquired through reinvestment of dividends on Investor C Shares will also convert","page_number":196,"box":{"x":116,"y":625,"width":670,"height":13}},{"id":"4bb53785-790b-4e07-9e48-0ce65347a149","block_type":"box","text":"automatically to Investor A Shares, as set forth in each Fund’s Prospectus. The Investor C Conversion","page_number":196,"box":{"x":116,"y":641,"width":765,"height":12}},{"id":"6bc0d17d-6ad7-419c-b592-6709dec896cb","block_type":"box","text":"Date for dividend reinvestment shares will be calculated taking into account the length of time the","page_number":196,"box":{"x":117,"y":656,"width":726,"height":13}},{"id":"aa5303b9-2cd5-4db7-8c3a-a1a2c808782a","block_type":"box","text":"shares underlying the dividend reinvestment shares were outstanding.","page_number":196,"box":{"x":116,"y":672,"width":520,"height":12}},{"id":"3bf251c4-6707-45f5-888a-059c740d9816","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":196,"box":{"x":117,"y":700,"width":418,"height":12}},{"id":"41f93997-36cc-490d-a845-e153360d74f1","block_type":"box","text":"Investor C Shares that are redeemed within one year of purchase may be subject to a 1.00% CDSC","page_number":196,"box":{"x":117,"y":722,"width":741,"height":12}},{"id":"4b0355c0-fed4-48a7-aec3-2a492362e79d","block_type":"box","text":"charged as a percentage of the dollar amount subject thereto. In determining whether an Investor C","page_number":196,"box":{"x":116,"y":738,"width":739,"height":12}},{"id":"63c0f0ee-38f9-4d7c-b9c6-9d8aac315ed8","block_type":"box","text":"Shares CDSC is applicable to a redemption, the calculation will be determined in the manner that","page_number":196,"box":{"x":116,"y":753,"width":722,"height":12}},{"id":"06c6bc1a-d6e1-4733-975f-5e9e06f505f2","block_type":"box","text":"results in the lowest possible rate being charged. The charge will be assessed on an amount equal to","page_number":196,"box":{"x":117,"y":769,"width":751,"height":12}},{"id":"bfd179a6-b8bb-498b-96b8-720670985f9e","block_type":"box","text":"the lesser of the proceeds of redemption or the cost of the shares being redeemed. Accordingly, no","page_number":196,"box":{"x":116,"y":784,"width":737,"height":12}},{"id":"1aea5e62-afa2-4c4b-a6c7-e58edb1cad39","block_type":"box","text":"CDSC will be imposed on increases in NAV above the initial purchase price of Investor C Shares. In","page_number":196,"box":{"x":117,"y":800,"width":740,"height":12}},{"id":"41c26470-1841-487f-b188-8719807dcde2","block_type":"box","text":"addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of dividends.","page_number":196,"box":{"x":116,"y":815,"width":759,"height":12}},{"id":"12ef6fc2-518f-45e0-a630-96e1b7cb58af","block_type":"box","text":"It will be assumed that the redemption is first of shares held for over one year or shares acquired","page_number":196,"box":{"x":117,"y":831,"width":722,"height":12}},{"id":"371d76db-4bb5-4920-a8b8-de1c839d6928","block_type":"box","text":"pursuant to reinvestment of dividends and then of shares held longest during the one-year period. A","page_number":196,"box":{"x":117,"y":846,"width":745,"height":12}},{"id":"985ff595-513d-4df9-a087-312055da89ce","block_type":"box","text":"transfer of shares from a shareholder’s account to another account will be assumed to be made in the","page_number":196,"box":{"x":116,"y":862,"width":761,"height":9}},{"id":"6d208553-0b92-4f23-bbb0-741397ab5b1a","block_type":"box","text":"same order as a redemption.","page_number":196,"box":{"x":116,"y":877,"width":220,"height":12}},{"id":"3d3fa7de-db43-4d2e-9a7d-1825139eb6dc","block_type":"box","text":"II-137","page_number":196,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"008a3f24-b742-4dac-8170-991cf3d29242","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":196,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"04d3ab7d-2589-4d4a-80b2-75f156085055","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":197,"box":{"x":116,"y":87,"width":770,"height":12}},{"id":"c7c45c5a-5196-4034-9131-6b5d32276b11","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods","page_number":197,"box":{"x":117,"y":102,"width":726,"height":12}},{"id":"35ff025e-3f1d-4a1a-99cb-f6792f6e1855","block_type":"box","text":"indicated.","page_number":197,"box":{"x":117,"y":118,"width":75,"height":10}},{"id":"72693b4b-c3fa-4401-8f4e-482ed861a9dd","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":197,"box":{"x":117,"y":149,"width":610,"height":12}},{"id":"3f0fc672-1339-4fc9-abe3-51bb656a5da9","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C","page_number":197,"box":{"x":116,"y":172,"width":725,"height":12}},{"id":"a4af6d4e-27a5-48b1-ad20-cfba63b2b458","block_type":"box","text":"Shares purchased through certain employer-sponsored retirement plans and fee-based programs","page_number":197,"box":{"x":116,"y":188,"width":729,"height":12}},{"id":"3bdf62b0-f49b-4379-9e27-860a4de02216","block_type":"box","text":"previously approved by certain Funds and rollovers of current investments in the Fund through such","page_number":197,"box":{"x":117,"y":203,"width":745,"height":12}},{"id":"9385a0d1-9757-44fa-bd01-84e85b5d00d8","block_type":"box","text":"plans; (2) exchanges described in “Exchange Privilege” below; (3) redemptions made in connection","page_number":197,"box":{"x":117,"y":219,"width":741,"height":12}},{"id":"479e839e-2e8d-4055-92cc-78b35ea9da9b","block_type":"box","text":"with minimum required distributions due to the shareholder reaching age 72 from IRA and 403(b)(7)","page_number":197,"box":{"x":116,"y":234,"width":744,"height":12}},{"id":"3bd50e6d-4b17-4e6e-bcfe-82a0f2574c4f","block_type":"box","text":"accounts; (4) redemptions made with respect to certain retirement plans sponsored by the Fund,","page_number":197,"box":{"x":116,"y":250,"width":721,"height":12}},{"id":"bda0188c-bc3b-4ffd-91ec-1d1ca1232225","block_type":"box","text":"BlackRock or its affiliates; (5) redemptions in connection with a shareholder’s death as long as the","page_number":197,"box":{"x":117,"y":265,"width":732,"height":12}},{"id":"f088a6d5-c2a4-4478-8890-0735def1c558","block_type":"box","text":"waiver request is made within one year of death or, if later, reasonably promptly following completion of","page_number":197,"box":{"x":116,"y":281,"width":772,"height":12}},{"id":"c03cb72b-6223-473a-b685-39d8843d31f1","block_type":"box","text":"probate (including in connection with the distribution of account assets to a beneficiary of the decedent)","page_number":197,"box":{"x":117,"y":296,"width":771,"height":12}},{"id":"dcf7fb5a-2ac7-4dc4-801b-7f6aa003af5f","block_type":"box","text":"or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":197,"box":{"x":116,"y":312,"width":766,"height":12}},{"id":"4748dc07-da9c-4d6e-b598-fb9fb7e2bf8a","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent","page_number":197,"box":{"x":117,"y":327,"width":770,"height":12}},{"id":"2066c43a-2f4b-4665-b9fc-b699e341ade3","block_type":"box","text":"to the purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low","page_number":197,"box":{"x":116,"y":343,"width":749,"height":12}},{"id":"72b07c22-960d-41c2-b585-129854e7c49d","block_type":"box","text":"balances as described in “Redemption of Shares” below; (8) redemptions made pursuant to a","page_number":197,"box":{"x":117,"y":358,"width":698,"height":12}},{"id":"f6bd3f60-9c99-4b76-bb28-89b1eeafe6ce","block_type":"box","text":"systematic withdrawal plan, subject to the limitations set forth under “Systematic Withdrawal Plan”","page_number":197,"box":{"x":116,"y":374,"width":731,"height":12}},{"id":"00fd31e4-ed02-464f-8850-a6e4eee56f36","block_type":"box","text":"below; (9) redemptions related to the payment of BNY Mellon Investment Servicing Trust Company","page_number":197,"box":{"x":117,"y":389,"width":740,"height":12}},{"id":"8b2f8dcd-7137-4746-a55e-f8b581cff31c","block_type":"box","text":"custodial IRA fees; and (10) redemptions when a shareholder can demonstrate hardship, in the","page_number":197,"box":{"x":116,"y":405,"width":712,"height":12}},{"id":"8cdacf99-2596-4e4f-9e46-c4081a8bcedb","block_type":"box","text":"absolute discretion of the Fund. In addition, no CDSC is charged on Investor C Shares acquired","page_number":197,"box":{"x":116,"y":420,"width":716,"height":12}},{"id":"23253b99-9c53-46fb-a7fb-b7f9c2e654c0","block_type":"box","text":"through the reinvestment of dividends or distributions.","page_number":197,"box":{"x":116,"y":436,"width":404,"height":12}},{"id":"9fff1f98-e8a9-4a24-a381-8c93ca187921","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain","page_number":197,"box":{"x":117,"y":467,"width":756,"height":12}},{"id":"6cfcd3f9-70f9-40c2-bff2-2dc2382cc5a0","block_type":"box","text":"financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in","page_number":197,"box":{"x":116,"y":482,"width":746,"height":12}},{"id":"f8b6d87e-a92b-4e96-9a03-af2a73c75f2d","block_type":"box","text":"the Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":197,"box":{"x":116,"y":498,"width":662,"height":12}},{"id":"253dff53-2066-4335-82dd-c81cfddaa9dd","block_type":"box","text":"Class R Shares","page_number":197,"box":{"x":116,"y":529,"width":127,"height":9}},{"id":"b6693a77-b623-4a78-9255-3b1ce51b4fd7","block_type":"box","text":"Certain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R","page_number":197,"box":{"x":117,"y":552,"width":727,"height":12}},{"id":"3b1edaef-a16e-43ab-85fd-c930b36d0f20","block_type":"box","text":"Shares are available only to certain employer-sponsored retirement plans. Class R Shares are not","page_number":197,"box":{"x":116,"y":568,"width":734,"height":12}},{"id":"b3cde86f-6fa4-42f3-8378-b14e53d0cfa1","block_type":"box","text":"subject to an initial sales charge or a CDSC but are subject to an ongoing distribution fee of 0.25% per","page_number":197,"box":{"x":116,"y":583,"width":765,"height":12}},{"id":"075bb177-5bb9-4cd9-89fa-1630d3dc8039","block_type":"box","text":"year and an ongoing service fee of 0.25% per year. Distribution fees are used to support the Fund’s","page_number":197,"box":{"x":116,"y":599,"width":745,"height":12}},{"id":"7d07b89c-94a8-40ca-a8ee-b6001c43e3d5","block_type":"box","text":"marketing and distribution efforts, such as compensating financial advisers and other financial","page_number":197,"box":{"x":117,"y":614,"width":700,"height":12}},{"id":"1eba9dde-7b97-49a3-8efc-dd3db0043d5f","block_type":"box","text":"intermediaries, advertising and promotion. Service fees are used to compensate securities dealers and","page_number":197,"box":{"x":117,"y":630,"width":768,"height":12}},{"id":"25bc37d9-7f66-441e-97fe-3e349da13c90","block_type":"box","text":"other financial intermediaries for service activities.","page_number":197,"box":{"x":116,"y":645,"width":376,"height":10}},{"id":"c7573b3a-0be9-4f24-84fe-3cc1fa383536","block_type":"box","text":"If Class R Shares are held over time, these","page_number":197,"box":{"x":117,"y":676,"width":319,"height":11}},{"id":"ecd8487a-f4fd-40d7-866c-09afbbd856a7","block_type":"box","text":"fees may exceed the maximum sales charge that an","page_number":197,"box":{"x":442,"y":676,"width":388,"height":12}},{"id":"943b3f1f-c8ac-4f40-aefb-5038e8c01b94","block_type":"box","text":"investor would have paid as a shareholder of one of the other share classes.","page_number":197,"box":{"x":117,"y":692,"width":566,"height":12}},{"id":"07802293-3617-4258-b329-c5655776d122","block_type":"box","text":"Class K Shares","page_number":197,"box":{"x":116,"y":723,"width":122,"height":9}},{"id":"c2909162-6458-43e3-a22c-07811a84961f","block_type":"box","text":"Certain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are","page_number":197,"box":{"x":117,"y":746,"width":761,"height":12}},{"id":"21e68c63-23cc-43b3-a8ba-e83ded2eda2c","block_type":"box","text":"available only to (i) certain employee benefit plans, such as health savings accounts, and certain","page_number":197,"box":{"x":116,"y":761,"width":716,"height":13}},{"id":"a3f8a56a-682b-4c84-999e-52251e00455a","block_type":"box","text":"employer-sponsored retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs)","page_number":197,"box":{"x":116,"y":777,"width":694,"height":12}},{"id":"477e4c9b-381b-4fc1-9d31-ee123c86cbe5","block_type":"box","text":"(collectively, “Employer-Sponsored Retirement Plans”), (ii) collective trust funds, investment companies","page_number":197,"box":{"x":117,"y":792,"width":765,"height":13}},{"id":"3e8dd3d5-5b07-49b3-a692-a4eaf013829b","block_type":"box","text":"and other pooled investment vehicles, each of which may purchase shares of the Fund through a","page_number":197,"box":{"x":116,"y":808,"width":720,"height":12}},{"id":"609a639c-9d11-48b1-8650-7063e5421dfc","block_type":"box","text":"financial intermediary that has entered into an agreement with the Distributor to purchase such shares,","page_number":197,"box":{"x":116,"y":823,"width":761,"height":13}},{"id":"507c02a9-dfd3-4c33-9012-9ab4715a4851","block_type":"box","text":"(iii) “Institutional Investors,” which include but are not limited to, endowments, foundations, family","page_number":197,"box":{"x":117,"y":839,"width":722,"height":12}},{"id":"1efb8e14-7c51-43b5-8e6f-d0983cd6b88d","block_type":"box","text":"offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":197,"box":{"x":116,"y":854,"width":710,"height":13}},{"id":"bcf7fb20-68d3-416d-90e2-0a898136be3a","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a","page_number":197,"box":{"x":117,"y":870,"width":735,"height":12}},{"id":"11befd95-caaa-4867-8380-807054d81074","block_type":"box","text":"II-138","page_number":197,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"3bd5b618-c1b2-4141-ab9a-529b1b0dbed5","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":197,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"56e86ff9-66f3-4792-95f2-cd96ef033c82","block_type":"box","text":"financial intermediary that has entered into an agreement with the Distributor to purchase such shares,","page_number":198,"box":{"x":116,"y":87,"width":767,"height":12}},{"id":"8737442a-d10b-473d-ac2e-5efe786c80b2","block_type":"box","text":"(iv) clients of private banks that purchase shares of the Fund through a financial intermediary that has","page_number":198,"box":{"x":117,"y":102,"width":759,"height":13}},{"id":"edde2e7d-b202-4831-a50f-d65abc118119","block_type":"box","text":"entered into an agreement with the Distributor to sell such shares; (v) fee-based advisory platforms of","page_number":198,"box":{"x":116,"y":118,"width":759,"height":12}},{"id":"7f77afc5-e08b-4972-9aff-23d894d0f9a5","block_type":"box","text":"a financial intermediary that (a) has specifically acknowledged in a written agreement with the","page_number":198,"box":{"x":116,"y":134,"width":699,"height":12}},{"id":"d133a2fb-74cf-4c9a-abd1-b11722a413ba","block_type":"box","text":"Distributor and/or its affiliate(s) that the financial intermediary shall offer such shares to fee-based","page_number":198,"box":{"x":117,"y":149,"width":728,"height":12}},{"id":"37e4fe05-7382-4201-9536-9d1587efb9b8","block_type":"box","text":"advisory clients through an omnibus account held at the Fund or (b) transacts in the Fund’s shares","page_number":198,"box":{"x":116,"y":165,"width":737,"height":12}},{"id":"efe5a98e-7797-4116-857d-251abb7a5471","block_type":"box","text":"through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":198,"box":{"x":116,"y":180,"width":750,"height":12}},{"id":"46362c07-8c3a-40d3-bf81-51f0e09a0e6f","block_type":"box","text":"met the eligibility criteria for BlackRock Shares or Class K Shares prior to August 15, 2016 and have","page_number":198,"box":{"x":117,"y":196,"width":748,"height":12}},{"id":"1ca83703-71a6-4c65-8f17-e19f099e3877","block_type":"box","text":"continually held Class K Shares of the Fund or the respective Predecessor Fund in the same account","page_number":198,"box":{"x":116,"y":211,"width":757,"height":12}},{"id":"52d298ca-9be1-4c16-bca0-6adcc9c751f4","block_type":"box","text":"since August 15, 2016. The agreement referenced in (iv) above shall appear in a supplemental","page_number":198,"box":{"x":116,"y":227,"width":709,"height":12}},{"id":"944e83df-edb1-4e27-9fec-689d1ac16a4a","block_type":"box","text":"agreement to any selling, sub-transfer agent, or distribution and marketing agreement.","page_number":198,"box":{"x":116,"y":242,"width":645,"height":12}},{"id":"5d864ca6-e9fe-4068-9008-9c6429881bad","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":198,"box":{"x":117,"y":271,"width":762,"height":12}},{"id":"d6131be8-8156-440d-ae1b-bb1692430010","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly","page_number":198,"box":{"x":117,"y":287,"width":738,"height":12}},{"id":"c9d96807-d534-4eeb-9df1-1b1a840e5396","block_type":"box","text":"with BlackRock. Eligible individuals who would like to convert existing holdings to Class K Shares must","page_number":198,"box":{"x":116,"y":302,"width":767,"height":12}},{"id":"fa90b34d-7e8f-4773-8253-fcb44b6058be","block_type":"box","text":"contact BlackRock.","page_number":198,"box":{"x":116,"y":318,"width":148,"height":9}},{"id":"dd010ff2-3886-45ea-ad57-1c34d8c67ede","block_type":"box","text":"Class G Shares","page_number":198,"box":{"x":116,"y":347,"width":128,"height":10}},{"id":"637e72df-8620-4377-b283-acd8a3374243","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible","page_number":198,"box":{"x":117,"y":369,"width":767,"height":13}},{"id":"27f9a830-b8c7-4532-a5db-038182a06f61","block_type":"box","text":"platforms are those where clients invest in the Fund through a single omnibus account in the name of a","page_number":198,"box":{"x":117,"y":385,"width":770,"height":12}},{"id":"5b70e939-4c18-4037-9137-0a94c4a78d4c","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. For clients investing","page_number":198,"box":{"x":116,"y":400,"width":720,"height":13}},{"id":"00bacb82-9e5e-4206-a729-1258c3832f15","block_type":"box","text":"through such eligible platforms, the Fund does not impose investment minimums on any individual","page_number":198,"box":{"x":116,"y":416,"width":734,"height":12}},{"id":"53e4b391-7723-4386-9612-6e0978646939","block_type":"box","text":"investor. Financial intermediaries may impose separate eligibility requirements.","page_number":198,"box":{"x":117,"y":432,"width":591,"height":12}},{"id":"bb1105b4-18b9-4e08-ba98-e83e7ff862cb","block_type":"box","text":"Service Shares","page_number":198,"box":{"x":116,"y":461,"width":125,"height":9}},{"id":"817cabb3-87b5-4984-a334-3e4323a3b8f6","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain","page_number":198,"box":{"x":117,"y":483,"width":755,"height":12}},{"id":"7dd2d7ba-7f7c-4353-a7a1-808e7446cd24","block_type":"box","text":"financial institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain","page_number":198,"box":{"x":116,"y":499,"width":772,"height":12}},{"id":"8f2c5a0b-ab98-4af2-8ab6-f1e43b7ae9b0","block_type":"box","text":"persons who were shareholders of the Compass Capital Group of Funds at the time of its combination","page_number":198,"box":{"x":117,"y":514,"width":762,"height":12}},{"id":"1b75e4ea-435f-42ed-be7d-012a3a4a3cb4","block_type":"box","text":"with The PNC","page_number":198,"box":{"x":116,"y":530,"width":103,"height":9}},{"id":"4147d100-7dea-445d-86cd-e8f036f0ae17","block_type":"box","text":"®","page_number":198,"box":{"x":219,"y":529,"width":10,"height":7}},{"id":"e885e837-4ee4-4566-bbc4-3369c028a97d","block_type":"box","text":"Fund in 1996; and (iii) participants in the Capital Directions","page_number":198,"box":{"x":229,"y":530,"width":440,"height":12}},{"id":"f2aead75-e28c-4caf-9c5e-c325cc972874","block_type":"box","text":"SM","page_number":198,"box":{"x":670,"y":530,"width":15,"height":6}},{"id":"74d25c11-2c86-462b-96f4-26054f8c64e7","block_type":"box","text":"asset allocation program.","page_number":198,"box":{"x":686,"y":530,"width":197,"height":12}},{"id":"e665020a-6f12-4755-a17b-65ec406caa77","block_type":"box","text":"Service Shares are not subject to an initial sales charge or a CDSC but are subject to an ongoing","page_number":198,"box":{"x":116,"y":545,"width":727,"height":12}},{"id":"473485a5-6604-40b7-9d31-72f9462b33e0","block_type":"box","text":"service fee as set forth in the applicable Fund’s Prospectus.","page_number":198,"box":{"x":116,"y":561,"width":449,"height":12}},{"id":"7bc88df2-04bc-46a8-9a08-833c0596c51c","block_type":"box","text":"BlackRock Shares","page_number":198,"box":{"x":117,"y":590,"width":150,"height":9}},{"id":"61546199-d590-4db1-9c91-9d0b40549400","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares","page_number":198,"box":{"x":117,"y":612,"width":770,"height":12}},{"id":"01a980d3-0b84-4791-b376-544bd874432c","block_type":"box","text":"are offered without a sales charge to institutional and individual investors, registered investment","page_number":198,"box":{"x":116,"y":628,"width":715,"height":12}},{"id":"016f5876-3a9d-4b25-aa51-3fa40de1761c","block_type":"box","text":"advisers and certain fee-based programs.","page_number":198,"box":{"x":116,"y":643,"width":315,"height":12}},{"id":"5553e7cf-2b49-4be6-953c-71f1f604c8de","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":198,"box":{"x":117,"y":672,"width":382,"height":13}},{"id":"bb4e84c2-2c7d-474b-8e4b-1f34eccf11e0","block_type":"box","text":"Each Fund has adopted a plan (each, a “Plan”) pursuant to Rule 12b-1 under the Investment Company","page_number":198,"box":{"x":117,"y":695,"width":764,"height":12}},{"id":"ef79fb9d-26bd-4423-9fb4-c161c3369112","block_type":"box","text":"Act with respect to certain share classes that allows the Fund to pay distribution fees for the sale of its","page_number":198,"box":{"x":116,"y":710,"width":756,"height":12}},{"id":"b96ef99d-9695-44dd-a714-a3a40be15a9e","block_type":"box","text":"shares and shareholder servicing fees for certain services provided to its shareholders.","page_number":198,"box":{"x":116,"y":726,"width":645,"height":12}},{"id":"25f6ec68-50ea-483e-9e35-2b45d717ce6d","block_type":"box","text":"Pursuant to the Plans, a Fund may pay BRIL and/or BlackRock, or any other affiliate or significant","page_number":198,"box":{"x":117,"y":755,"width":725,"height":12}},{"id":"2ae1fc99-0ac5-4dbe-be59-9180a3a65a1d","block_type":"box","text":"shareholder of BlackRock, fees for distribution and sales support services with respect to Investor A,","page_number":198,"box":{"x":116,"y":771,"width":744,"height":12}},{"id":"483fd50b-f64b-4015-b9dd-15a87e4f2311","block_type":"box","text":"Investor A1, Investor C, Investor P, Service and Class R Shares. Currently, as described further below,","page_number":198,"box":{"x":117,"y":786,"width":763,"height":12}},{"id":"a6c36e5f-6488-4fd6-bd2d-f836ef6cd328","block_type":"box","text":"only Investor C and Class R Shares bear the expense of distribution fees under a Plan.","page_number":198,"box":{"x":116,"y":802,"width":646,"height":12}},{"id":"ef6eba3e-d389-4fa1-b963-42b9c8763a16","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers","page_number":198,"box":{"x":117,"y":831,"width":735,"height":12}},{"id":"85b838c7-f9a2-4260-ab90-e95d3cee5001","block_type":"box","text":"shares of each Fund on a continuous basis. BRIL has agreed to use appropriate efforts to effect sales","page_number":198,"box":{"x":116,"y":846,"width":762,"height":12}},{"id":"c28b1e11-6f97-4351-beaf-23877722786a","block_type":"box","text":"of the shares, but it is not obligated to sell any particular amount of shares. BRIL’s principal business","page_number":198,"box":{"x":116,"y":862,"width":752,"height":12}},{"id":"f4dcb2b7-1e1c-4342-9bac-f111499b88cb","block_type":"box","text":"address is 50 Hudson Yards, New York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":198,"box":{"x":116,"y":877,"width":635,"height":12}},{"id":"639d2a06-3034-4145-8016-ec69a40332ea","block_type":"box","text":"II-139","page_number":198,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"444139b9-f032-4466-8d22-0117fa52257b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":198,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"89a1bcde-3ee3-4c79-a998-5768756258ae","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":199,"box":{"x":117,"y":87,"width":765,"height":12}},{"id":"ce110056-5de5-427b-9187-2080d2b996f8","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions,","page_number":199,"box":{"x":116,"y":102,"width":744,"height":13}},{"id":"2347391a-4049-44e6-841e-9cc17a7664e6","block_type":"box","text":"insurance companies, retirement plan record-keepers and other financial intermediaries (including","page_number":199,"box":{"x":117,"y":118,"width":731,"height":12}},{"id":"45a5b0f6-9fcd-42d2-91b0-e00a5b5f2d56","block_type":"box","text":"BlackRock, BRIL and their affiliates) (collectively, “Service Organizations”) for certain support services","page_number":199,"box":{"x":117,"y":134,"width":761,"height":12}},{"id":"fee3197d-0560-4f4d-abab-6f3d583aa864","block_type":"box","text":"rendered by Service Organizations to their customers (“Customers”) who are the beneficial owners of","page_number":199,"box":{"x":117,"y":149,"width":756,"height":12}},{"id":"fae77619-6e4f-4a07-b2ad-2a9f4ca858a4","block_type":"box","text":"Investor A, Investor A1, Investor C, Investor P, Service and Class R Shares of a Fund. Such services","page_number":199,"box":{"x":117,"y":165,"width":755,"height":11}},{"id":"e61fd6c1-594f-495a-ae00-c1d729066118","block_type":"box","text":"are intended to supplement the services provided by the Fund’s Administrators and Transfer Agent to","page_number":199,"box":{"x":116,"y":180,"width":758,"height":12}},{"id":"416c1860-7065-404d-a78e-50f5f48a3c70","block_type":"box","text":"the Fund’s shareholders of record.","page_number":199,"box":{"x":116,"y":196,"width":261,"height":9}},{"id":"1284d468-4be1-4bcf-92ba-e7b91ec76089","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services,","page_number":199,"box":{"x":116,"y":227,"width":728,"height":12}},{"id":"46ec15a4-b1ce-4363-a37e-5222a05ef27a","block_type":"box","text":"which include, but are not limited to: (i) answering Customer inquiries regarding account status and","page_number":199,"box":{"x":116,"y":242,"width":740,"height":12}},{"id":"1e17adf0-bd91-4bef-a2fd-d15b6f6d7c46","block_type":"box","text":"history, the manner in which purchases, exchanges and redemptions or repurchases of shares may be","page_number":199,"box":{"x":117,"y":258,"width":767,"height":12}},{"id":"f3ab32b5-068f-40b7-bd93-002caed987b2","block_type":"box","text":"effected and certain other matters pertaining to the Customers’ investments; and (ii) assisting","page_number":199,"box":{"x":116,"y":273,"width":697,"height":12}},{"id":"950e4fb0-8c98-47ca-929c-1de4bb41bed2","block_type":"box","text":"Customers in designating and changing dividend options, account designations and addresses. The","page_number":199,"box":{"x":117,"y":289,"width":746,"height":12}},{"id":"0955d83f-f4e9-419d-b87e-0fc5a5645a0d","block_type":"box","text":"shareholder servicing fees payable pursuant to the Plans are paid to compensate Service","page_number":199,"box":{"x":116,"y":304,"width":670,"height":12}},{"id":"e7334b19-5d6f-410e-8f70-b2230035650f","block_type":"box","text":"Organizations for the administration and servicing of shareholder accounts and are not costs which are","page_number":199,"box":{"x":116,"y":320,"width":769,"height":12}},{"id":"d40e98b8-a1cf-42db-8a76-f54eab0af90d","block_type":"box","text":"primarily intended to result in the sale of the Fund’s shares.","page_number":199,"box":{"x":117,"y":335,"width":444,"height":12}},{"id":"cca03c80-9b75-4902-a19c-8a1f93761fc0","block_type":"box","text":"Payments under the Plans are based on a percentage of average daily net assets attributable to the","page_number":199,"box":{"x":117,"y":366,"width":746,"height":12}},{"id":"c13fa93c-f6d2-48fe-aa08-74b09d06438d","block_type":"box","text":"shares in the applicable share class regardless of the amount of expenses incurred. As a result,","page_number":199,"box":{"x":116,"y":382,"width":716,"height":12}},{"id":"a16aad04-c739-4f35-b544-405ae2fbdbd4","block_type":"box","text":"payments under the Plans may be more or less than expenses incurred in connection with providing","page_number":199,"box":{"x":117,"y":397,"width":747,"height":12}},{"id":"e887d070-01fb-475e-8997-bbd9d506c591","block_type":"box","text":"distribution and/or shareholder services with respect to the related class. Information with respect to","page_number":199,"box":{"x":116,"y":413,"width":746,"height":12}},{"id":"e0d91158-479a-454d-87b0-f979b624337f","block_type":"box","text":"the payments under the Plans and expenses incurred in providing services with respect to the related","page_number":199,"box":{"x":116,"y":428,"width":758,"height":12}},{"id":"49b133f8-55ef-42b4-8137-6885be17339e","block_type":"box","text":"class is presented to the Directors for their consideration quarterly. Payments under the Plans consist","page_number":199,"box":{"x":116,"y":444,"width":759,"height":12}},{"id":"e4abca27-a851-40e5-81b3-eab78ab8f4c0","block_type":"box","text":"of the shareholder servicing fees and the distribution fees. Expenses with respect to providing","page_number":199,"box":{"x":116,"y":459,"width":701,"height":12}},{"id":"94dc47a5-b041-4beb-a727-377af7871746","block_type":"box","text":"distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":199,"box":{"x":116,"y":475,"width":742,"height":12}},{"id":"5701319b-a365-46b3-a126-2bbcc3481123","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction","page_number":199,"box":{"x":116,"y":490,"width":736,"height":12}},{"id":"9024bada-c18b-4373-8d8a-39cbe69f664e","block_type":"box","text":"processing expenses, advertising, sales promotion and marketing expenses. Payments under the","page_number":199,"box":{"x":117,"y":506,"width":728,"height":12}},{"id":"ffb955d8-97c0-41f9-90db-6b20636e2244","block_type":"box","text":"Plans with respect to one class will not be used to finance the expenditures of another class. Sales","page_number":199,"box":{"x":117,"y":521,"width":737,"height":12}},{"id":"f7770c66-9a00-433e-ae7b-e1c91621dd5c","block_type":"box","text":"personnel may receive different compensation for selling different classes of shares.","page_number":199,"box":{"x":117,"y":537,"width":629,"height":12}},{"id":"90a9b2f7-9727-4141-9cf8-348c9bd427fa","block_type":"box","text":"Each Plan is subject to the provisions of Rule 12b-1 under the Investment Company Act. In their","page_number":199,"box":{"x":117,"y":568,"width":717,"height":12}},{"id":"40e4c35b-079c-48e4-ae68-3551d8a3211a","block_type":"box","text":"consideration of a Plan, the Directors must consider all factors they deem relevant, including","page_number":199,"box":{"x":116,"y":583,"width":690,"height":12}},{"id":"e488c561-2c2c-40f2-8d85-6f59b1e91b1d","block_type":"box","text":"information as to the benefits of the Plan to the Fund and the related class of shareholders. In","page_number":199,"box":{"x":117,"y":599,"width":699,"height":9}},{"id":"e1ae1480-68a5-44a5-bdcd-720cf0c67352","block_type":"box","text":"approving a Plan in accordance with Rule 12b-1, the non-interested Directors concluded that there is","page_number":199,"box":{"x":116,"y":614,"width":753,"height":12}},{"id":"b7a90afd-39c1-42fd-9885-c7544a0204c9","block_type":"box","text":"reasonable likelihood that the Plan will benefit the Fund and its related class of shareholders. The Plan","page_number":199,"box":{"x":117,"y":630,"width":766,"height":9}},{"id":"9a5fb655-ecf5-4be1-b21d-72144b1636d4","block_type":"box","text":"provides, among other things, that: (i) the Board of Directors shall receive quarterly reports regarding","page_number":199,"box":{"x":117,"y":645,"width":752,"height":12}},{"id":"3a455cdb-ee3a-4eec-948d-37f154d8ef73","block_type":"box","text":"the amounts expended under the Plan and the purposes for which such expenditures were made; (ii)","page_number":199,"box":{"x":116,"y":661,"width":748,"height":12}},{"id":"50d301c2-9954-4d9b-817f-b5b01c608b4f","block_type":"box","text":"the Plan will continue in effect for so long as its continuance is approved at least annually by the Board","page_number":199,"box":{"x":116,"y":676,"width":761,"height":12}},{"id":"580bc8b8-164a-490d-b79b-f830d76abaa3","block_type":"box","text":"of Directors, including the directors who are not “interested persons” of the Fund (as defined in the","page_number":199,"box":{"x":116,"y":692,"width":729,"height":12}},{"id":"05058165-e77f-4368-811d-d8f941ce268a","block_type":"box","text":"Investment Company Act) and who have no direct or indirect financial interest in the operation of the","page_number":199,"box":{"x":117,"y":707,"width":743,"height":12}},{"id":"d900fd14-d8ec-4c34-bcdb-5001318d3290","block_type":"box","text":"Plan or any agreement entered into in connection with the Plan (the “12b-1 Directors”), acting in person","page_number":199,"box":{"x":117,"y":723,"width":765,"height":12}},{"id":"c6b1433a-447b-4d00-b7da-509beaf82ac6","block_type":"box","text":"at a meeting called for said purpose in accordance with Rule 12b-1 under the Investment Company","page_number":199,"box":{"x":116,"y":738,"width":737,"height":12}},{"id":"afb4fbc7-8cef-4187-8fe7-00264ee4c57e","block_type":"box","text":"Act; (iii) any material amendment thereto must be approved by the Board of Directors, including the","page_number":199,"box":{"x":116,"y":754,"width":737,"height":12}},{"id":"82e6cbb6-144a-4e8e-bbbb-1c2683dec76e","block_type":"box","text":"12b-1 Directors, acting in person at a meeting called for said purpose; (iv) any amendment to increase","page_number":199,"box":{"x":118,"y":769,"width":757,"height":12}},{"id":"ae29e291-3a95-4946-bb66-a858bcbe22e2","block_type":"box","text":"materially the costs which any class of shares may bear for distribution services pursuant to the Plan","page_number":199,"box":{"x":117,"y":785,"width":745,"height":12}},{"id":"03e3fdc4-d862-4a17-ba10-fd126185c12c","block_type":"box","text":"shall be effective only upon approval by a vote of a majority of the outstanding shares of such class","page_number":199,"box":{"x":116,"y":800,"width":736,"height":12}},{"id":"88af9241-41d8-4d86-9ef2-62d5c052e752","block_type":"box","text":"and by a majority of the Board of Directors, including the 12b-1 Directors, acting in person at a meeting","page_number":199,"box":{"x":116,"y":816,"width":763,"height":12}},{"id":"557070d5-1245-4af4-aa80-b81d5ee6f640","block_type":"box","text":"called for said purpose; and (v) while the Plan remains in effect, the selection and nomination of the","page_number":199,"box":{"x":116,"y":831,"width":744,"height":12}},{"id":"b4cbbaa0-83c3-40da-9992-8f0d196b6e71","block_type":"box","text":"Fund’s Directors who are not “interested persons” of the Fund shall be committed to the discretion of","page_number":199,"box":{"x":117,"y":847,"width":750,"height":12}},{"id":"650b2b3d-8320-4553-b738-dccf7a2694fd","block_type":"box","text":"the Fund’s non-interested Directors. Rule 12b-1 further requires that each Fund preserve copies of","page_number":199,"box":{"x":116,"y":862,"width":737,"height":12}},{"id":"3e7bec53-9352-4de8-842b-a644a5f64ae1","block_type":"box","text":"II-140","page_number":199,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"5c909601-416f-4a94-bfae-45d50e2c66e0","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":199,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4d1f0aed-77f2-4355-ad8a-6ec25d0fe2b5","block_type":"box","text":"each Plan and any report made pursuant to such Plan for a period of not less than six years from the","page_number":200,"box":{"x":116,"y":87,"width":753,"height":12}},{"id":"c0e03463-151b-4e55-a09b-229997d12b25","block_type":"box","text":"date of the Plan or such report, the first two years in an easily accessible place.","page_number":200,"box":{"x":116,"y":102,"width":594,"height":13}},{"id":"52a9348f-7e24-4bcb-b958-9b303b1d39f6","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","page_number":200,"box":{"x":117,"y":132,"width":762,"height":13}},{"id":"1fc0900c-7221-4c2e-906f-80ac1c7c8d76","block_type":"box","text":"the 12b-1 Directors, or by vote of the holders of a majority of the shares of such class.","page_number":200,"box":{"x":116,"y":148,"width":643,"height":12}},{"id":"16eafef5-115c-4737-b3fa-ab44afbadbe5","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":200,"box":{"x":116,"y":178,"width":770,"height":12}},{"id":"b1ebc6be-843e-4be1-9ae7-979144de2a84","block_type":"box","text":"information relating to the fees paid by your Fund to the Distributor under each Plan during the Fund’s","page_number":200,"box":{"x":117,"y":193,"width":759,"height":12}},{"id":"4c8ade8b-04a7-4fc5-8d42-ac44898686f7","block_type":"box","text":"most recent fiscal year.","page_number":200,"box":{"x":117,"y":209,"width":177,"height":12}},{"id":"e0c8ec24-a21e-4cf3-a49c-4bbda33a39c5","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":200,"box":{"x":117,"y":239,"width":439,"height":12}},{"id":"d04c1e14-49bc-4e93-af7e-e5bd484be7d0","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority","page_number":200,"box":{"x":116,"y":261,"width":745,"height":13}},{"id":"562bfc33-6043-44f1-89db-8bef2bbdb4d3","block_type":"box","text":"(“FINRA”) imposes a limitation on certain asset-based sales charges such as the distribution fee borne","page_number":200,"box":{"x":117,"y":277,"width":765,"height":12}},{"id":"7ff068e2-5bcd-4cf8-b7eb-3271368cb19d","block_type":"box","text":"by Class R Shares, and the distribution fee and the CDSC borne by the Investor C Shares. This","page_number":200,"box":{"x":117,"y":292,"width":715,"height":13}},{"id":"550ac7e5-3b3a-4388-90c8-9d6d0f132bb5","block_type":"box","text":"limitation does not apply to the shareholder servicing fee. The maximum sales charge rule is applied","page_number":200,"box":{"x":117,"y":308,"width":748,"height":12}},{"id":"28f4e6dd-280b-4967-9c95-7e791c22cb22","block_type":"box","text":"separately to each class and limits the aggregate of distribution fee payments and CDSCs payable by","page_number":200,"box":{"x":116,"y":323,"width":759,"height":13}},{"id":"10fddfaf-e096-436e-9ee9-7f281200b261","block_type":"box","text":"a Fund to (1) 6.25% of eligible gross sales of Investor C and Class R Shares, computed separately","page_number":200,"box":{"x":116,"y":339,"width":739,"height":12}},{"id":"80d3e076-f67d-4af8-b2a8-20a7a89ccf05","block_type":"box","text":"(excluding shares issued pursuant to dividend reinvestments and exchanges), plus (2) interest on the","page_number":200,"box":{"x":117,"y":354,"width":756,"height":13}},{"id":"c5121fbc-1c5a-453c-8efe-cd97419b2e91","block_type":"box","text":"unpaid balance for the respective class, computed separately, at the prime rate plus 1% (the unpaid","page_number":200,"box":{"x":117,"y":370,"width":746,"height":12}},{"id":"fa752f9d-a1d7-4036-bfe6-3f6132a24cd1","block_type":"box","text":"balance being the maximum amount payable minus amounts received from the payment of the","page_number":200,"box":{"x":117,"y":385,"width":708,"height":13}},{"id":"b97cfe1d-e401-46c5-bdb9-c9ea45b5e60d","block_type":"box","text":"distribution fee and the CDSC). See “Information on Sales Charges and Distribution Related","page_number":200,"box":{"x":116,"y":401,"width":689,"height":12}},{"id":"f34be71e-c724-4d3d-be26-073e2fb028b2","block_type":"box","text":"Expenses” in Part I of each Fund’s SAI for comparative information as of your Fund’s most recent fiscal","page_number":200,"box":{"x":117,"y":416,"width":771,"height":13}},{"id":"38d7c4b8-ff3f-4aff-a036-02528572c437","block_type":"box","text":"year end with respect to, if applicable, the Investor C and Class R Shares of your Fund.","page_number":200,"box":{"x":116,"y":432,"width":654,"height":12}},{"id":"42960324-82b3-49c7-a6a1-aa026d12f6ab","block_type":"box","text":"Other Payments by the Fund","page_number":200,"box":{"x":116,"y":462,"width":234,"height":12}},{"id":"5ce42f7e-3ec0-4c6c-9467-82eccedfac78","block_type":"box","text":"In addition to shareholder servicing fees that a Fund may pay to a Service Organization pursuant to the","page_number":200,"box":{"x":117,"y":485,"width":770,"height":12}},{"id":"86adfd03-ff5c-4eb1-80f0-99385182a851","block_type":"box","text":"Plan and fees the Fund pays to its Transfer Agent, BlackRock, on behalf of a Fund, may enter into","page_number":200,"box":{"x":117,"y":500,"width":733,"height":12}},{"id":"23856242-dfe2-41c6-a751-1fcecd4216ce","block_type":"box","text":"non-Plan agreements with Service Organizations pursuant to which the Fund will pay a Service","page_number":200,"box":{"x":117,"y":516,"width":711,"height":12}},{"id":"90962873-1888-48f7-8a77-7bd05ff2fcb1","block_type":"box","text":"Organization for administrative, networking, recordkeeping, sub-transfer agency, sub-accounting and/","page_number":200,"box":{"x":116,"y":531,"width":754,"height":12}},{"id":"eac757b9-02ae-4336-b043-fcf6b6831639","block_type":"box","text":"or shareholder services. These non-Plan payments are generally based on either (1) a percentage of","page_number":200,"box":{"x":116,"y":547,"width":755,"height":12}},{"id":"9834d273-54b8-4f56-99bc-67c91e388bf7","block_type":"box","text":"the average daily net assets of Fund shareholders serviced by a Service Organization or (2) a fixed","page_number":200,"box":{"x":116,"y":562,"width":742,"height":12}},{"id":"44b80187-517a-4bbb-bc63-ca9eb8237276","block_type":"box","text":"dollar amount for each account serviced by a Service Organization. The aggregate amount of these","page_number":200,"box":{"x":116,"y":578,"width":745,"height":12}},{"id":"6b1e50cb-f984-4e45-96d3-93ea76df2314","block_type":"box","text":"payments may be substantial.","page_number":200,"box":{"x":117,"y":593,"width":226,"height":12}},{"id":"7cdea206-afad-43d5-a50f-fb0e3a6084ae","block_type":"box","text":"Additional Payments by BlackRock","page_number":200,"box":{"x":116,"y":623,"width":286,"height":12}},{"id":"df484e86-68bf-4b7c-a81c-b1eb8472dcda","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively","page_number":200,"box":{"x":117,"y":646,"width":707,"height":12}},{"id":"ed9154cb-ef0c-4854-95e8-ae5d010c1a22","block_type":"box","text":"as “BlackRock”) may compensate Service Organizations for the sale and distribution of shares of a","page_number":200,"box":{"x":116,"y":661,"width":734,"height":12}},{"id":"5c8b4e72-7a18-4bcc-818f-9dd2ade63f81","block_type":"box","text":"Fund, for services to a Fund and its shareholders and/or for data provision or technology support. A","page_number":200,"box":{"x":117,"y":677,"width":738,"height":12}},{"id":"76078c02-794c-4afe-8654-ceaf37a267d4","block_type":"box","text":"Service Organization may perform these obligations itself or may arrange for a third party to perform","page_number":200,"box":{"x":116,"y":692,"width":743,"height":12}},{"id":"f99d7762-5f8d-4cbe-b096-004b204f45fc","block_type":"box","text":"them. These payments, which are not made pursuant to a Plan or otherwise paid by a Fund, are","page_number":200,"box":{"x":116,"y":708,"width":714,"height":12}},{"id":"1765b0e3-4d4b-42c0-be9c-70be97089132","block_type":"box","text":"referred to as “Additional Payments” herein.","page_number":200,"box":{"x":117,"y":723,"width":323,"height":12}},{"id":"175d8563-26d1-4ff6-b876-21c596127328","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly","page_number":200,"box":{"x":116,"y":753,"width":737,"height":12}},{"id":"f2404691-25c9-4886-bd6d-ffea1d3c4063","block_type":"box","text":"from fees paid by a Fund to BlackRock for various services, such as investment advisory services).","page_number":200,"box":{"x":116,"y":769,"width":735,"height":12}},{"id":"cdca4bad-610f-436d-a13b-bcf43a9643c7","block_type":"box","text":"These payments are not an additional charge to a Fund or its shareholders and do not change the","page_number":200,"box":{"x":116,"y":784,"width":728,"height":12}},{"id":"b9f862d3-6215-40c1-a925-4971a564b65d","block_type":"box","text":"price paid by shareholders for the purchase of a Fund’s shares or the amount a Fund receives as","page_number":200,"box":{"x":117,"y":800,"width":720,"height":12}},{"id":"741a7c4c-abaa-4514-afbe-a49d28a8c648","block_type":"box","text":"proceeds from such purchases. Additional Payments made to Service Organizations are in addition to","page_number":200,"box":{"x":117,"y":815,"width":755,"height":12}},{"id":"62ae9d61-1f7b-437a-947e-52ad867ead4f","block_type":"box","text":"any distribution or shareholder servicing fees paid under any Plan of any Fund, any sales charges,","page_number":200,"box":{"x":116,"y":831,"width":736,"height":12}},{"id":"13f455ee-0dc7-4f8e-a2b1-603d4b1d9488","block_type":"box","text":"commissions or other concessions described in the Prospectuses or this SAI, and any administrative,","page_number":200,"box":{"x":116,"y":846,"width":757,"height":12}},{"id":"9cc8baf8-86cd-4988-b18c-91198bcad497","block_type":"box","text":"networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant","page_number":200,"box":{"x":117,"y":862,"width":754,"height":12}},{"id":"23db433d-4640-4e4b-9c34-532602ab6a05","block_type":"box","text":"to applicable FINRA regulations, the details of certain of these payments, including the Service","page_number":200,"box":{"x":116,"y":877,"width":708,"height":12}},{"id":"f965ac72-3597-4484-9f3e-27d847ba8c16","block_type":"box","text":"II-141","page_number":200,"box":{"x":480,"y":909,"width":38,"height":9}},{"id":"5de287dc-381d-4d01-99ce-0e243960c76f","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":200,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8718cb51-774a-440d-9ec1-9714335ed4bb","block_type":"box","text":"Organizations receiving such payments in connection with the sale and distribution of Fund shares, are","page_number":201,"box":{"x":116,"y":87,"width":770,"height":12}},{"id":"a48400df-500b-4699-af0e-17efcfb5c6ff","block_type":"box","text":"required to be disclosed. While FINRA regulations limit the sales charges that shareholders may bear,","page_number":201,"box":{"x":117,"y":103,"width":761,"height":12}},{"id":"d3bc4369-2d84-4735-a8f1-e9bb23c137ba","block_type":"box","text":"there are no limits with regard to the amounts that BlackRock may pay out of its own assets.","page_number":201,"box":{"x":116,"y":118,"width":690,"height":12}},{"id":"be59cfaf-78d4-485c-a992-7ebee4eeb474","block_type":"box","text":"Additional Payments may be made as a fixed dollar amount, may be based on the number of","page_number":201,"box":{"x":116,"y":146,"width":695,"height":12}},{"id":"ce4e8216-b5e1-480b-9914-26b2dab43d0d","block_type":"box","text":"Customer accounts maintained by a Service Organization, may be based on a percentage of the value","page_number":201,"box":{"x":117,"y":162,"width":766,"height":12}},{"id":"44263fa9-0c0b-4c6d-8102-583e20b02ee1","block_type":"box","text":"of shares sold to, or held by, Customers of the Service Organization involved, or may be calculated on","page_number":201,"box":{"x":116,"y":177,"width":764,"height":12}},{"id":"858e332c-fb1e-49ed-85e0-5a93825b5ab8","block_type":"box","text":"another basis.","page_number":201,"box":{"x":116,"y":193,"width":110,"height":9}},{"id":"e378f26b-bf47-4841-8b16-d28ea1e3eb2a","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis.","page_number":201,"box":{"x":117,"y":221,"width":730,"height":12}},{"id":"9953ab65-dc97-4576-98d4-759bfe27a0db","block_type":"box","text":"Additional Payments may be different for different Service Organizations, and some Service","page_number":201,"box":{"x":116,"y":237,"width":687,"height":12}},{"id":"116ba991-9584-4269-be05-b83d5e2161c1","block_type":"box","text":"Organizations may be paid pursuant to more than one of the calculations described above. Not all","page_number":201,"box":{"x":116,"y":252,"width":731,"height":12}},{"id":"2012204b-4799-4128-9ca8-f6d38a669c10","block_type":"box","text":"Service Organizations receive Additional Payments. Sales-based payments primarily create incentives","page_number":201,"box":{"x":116,"y":268,"width":766,"height":12}},{"id":"67752325-c1f5-49c0-8aa5-a27db450d13a","block_type":"box","text":"to make new sales of shares of the Fund, and asset-based payments primarily create incentives to","page_number":201,"box":{"x":116,"y":283,"width":737,"height":12}},{"id":"507f67ca-a0a0-40ff-a069-df31d1510c24","block_type":"box","text":"retain previously sold shares of the Fund. The level of payments made to these Service Organizations","page_number":201,"box":{"x":117,"y":299,"width":761,"height":12}},{"id":"4f9e77a6-07fc-47e0-8bfd-39c8cb1f6d6c","block_type":"box","text":"in any year will vary and may be limited to specific Funds or share classes. 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The same Service Organization, or one or more of its affiliates, may receive","page_number":201,"box":{"x":117,"y":389,"width":712,"height":12}},{"id":"9373578f-7772-4031-adc1-9af83574c857","block_type":"box","text":"payments under more than one category of Additional Payments. Such payments may be different for","page_number":201,"box":{"x":117,"y":405,"width":759,"height":12}},{"id":"e68e1421-1d06-4e57-94de-d5165ba5616e","block_type":"box","text":"different Service Organizations and for different types of Funds.","page_number":201,"box":{"x":116,"y":420,"width":477,"height":12}},{"id":"3804bf7e-6d23-4507-a6b8-9c40986f6f7f","block_type":"box","text":"A. 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In","page_number":201,"box":{"x":117,"y":738,"width":742,"height":12}},{"id":"8655c4c9-c466-4eee-8213-7df3c25805fc","block_type":"box","text":"these situations, a Fund may not maintain accounts in the name of the Customers and Service","page_number":201,"box":{"x":116,"y":753,"width":702,"height":12}},{"id":"839eaad5-e77e-47b4-a414-893bc4ccc717","block_type":"box","text":"Organizations may perform some of the functions for these Customers’ accounts that the Transfer","page_number":201,"box":{"x":116,"y":769,"width":728,"height":12}},{"id":"7034b155-cdc8-4262-b8cb-b833c7fa8c34","block_type":"box","text":"Agent would have performed if the accounts had been in the Customers’ names on the Fund’s books.","page_number":201,"box":{"x":116,"y":784,"width":753,"height":12}},{"id":"78f1b5d2-7653-431d-9861-cc782fead6c7","block_type":"box","text":"Such services include sub-accounting services, shareholder servicing and transaction processing","page_number":201,"box":{"x":116,"y":800,"width":722,"height":12}},{"id":"a145d536-1198-49a8-9194-d5b29bc97de7","block_type":"box","text":"services and are sometimes referred to as “recordkeeping,” “sub-transfer agency,” “sub-accounting,”","page_number":201,"box":{"x":116,"y":815,"width":745,"height":12}},{"id":"4cb9945b-63ae-4970-91a6-dc22daf79107","block_type":"box","text":"“networking” and/or “administrative” services. Additional Payments may exceed amounts that would be","page_number":201,"box":{"x":116,"y":831,"width":768,"height":12}},{"id":"0e3ca861-fa78-43b1-8bc6-295e1338a825","block_type":"box","text":"earned on these assets by the Transfer Agent for the performance of these or similar services. These","page_number":201,"box":{"x":116,"y":846,"width":758,"height":12}},{"id":"bde83a4e-cfc5-4b0a-a788-383e6a621320","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing","page_number":201,"box":{"x":116,"y":862,"width":750,"height":12}},{"id":"a6b8868c-22d5-4b54-864d-685e4318e06c","block_type":"box","text":"and transaction processing fees paid by a Fund, as applicable.","page_number":201,"box":{"x":116,"y":877,"width":470,"height":12}},{"id":"f900347d-1848-49ed-a620-4ae616a12d5c","block_type":"box","text":"II-142","page_number":201,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"faa1661a-840b-4a85-b1be-18b4778fb634","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":201,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"be3edfbb-058a-4ae5-b668-4b93ec91e46b","block_type":"box","text":"C. 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Such Additional Payments are generally made as a fixed dollar","page_number":202,"box":{"x":116,"y":140,"width":728,"height":12}},{"id":"bcb73634-20ae-4b67-95b1-ad01e0a83f09","block_type":"box","text":"amount, and not based on assets or sales.","page_number":202,"box":{"x":116,"y":155,"width":322,"height":11}},{"id":"724f76eb-6f1a-4ac4-b68b-69a5f9995cf7","block_type":"box","text":"D. Service Organizations Receiving Additional Payments","page_number":202,"box":{"x":150,"y":183,"width":427,"height":12}},{"id":"954f9abe-f42e-403a-90c0-06a6d915d75e","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, certain of the","page_number":202,"box":{"x":116,"y":205,"width":746,"height":12}},{"id":"5fca5cc1-41c5-4694-92d9-fbbb51e87f85","block_type":"box","text":"Service Organization’s affiliates, may be receiving one or more types of Additional Payments. This list","page_number":202,"box":{"x":116,"y":220,"width":759,"height":12}},{"id":"dfd23823-02ec-4002-857b-6ad303b9a3ba","block_type":"box","text":"may change over time, and BlackRock may pay Service Organizations or their affiliates additional","page_number":202,"box":{"x":117,"y":236,"width":729,"height":12}},{"id":"a7ace620-f571-4553-aef1-33349e359a7c","block_type":"box","text":"types of Additional Payments in the future. Please contact your Service Organization to determine","page_number":202,"box":{"x":116,"y":251,"width":731,"height":12}},{"id":"ab5ea70b-5177-4af6-bb04-88a9057d2063","block_type":"box","text":"whether it or its affiliate currently may be receiving such payments and to obtain further information","page_number":202,"box":{"x":116,"y":267,"width":739,"height":12}},{"id":"68bdc3a8-399c-4454-840a-9b140101f019","block_type":"box","text":"regarding any such payments.","page_number":202,"box":{"x":117,"y":282,"width":229,"height":12}},{"id":"f1157923-6ab8-4a09-8fca-77c6485f322e","block_type":"box","text":"&Partners","page_number":202,"box":{"x":116,"y":304,"width":79,"height":10}},{"id":"5ec7df32-78ed-4c49-99f0-29920c236713","block_type":"box","text":"AccuTech Systems Corporation","page_number":202,"box":{"x":116,"y":320,"width":241,"height":12}},{"id":"49f63d92-674c-4988-adc6-f932bbde10f5","block_type":"box","text":"ADP Broker-Dealer, 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(A Fund may also suspend or postpone the recordation of the transfer of its","page_number":206,"box":{"x":116,"y":490,"width":761,"height":12}},{"id":"563599cc-286c-4472-8dc4-30fc2f6fb483","block_type":"box","text":"shares upon the occurrence of any of the foregoing conditions.)","page_number":206,"box":{"x":116,"y":506,"width":476,"height":12}},{"id":"818b4d69-4367-4697-8eb1-aa08d715c942","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint","page_number":206,"box":{"x":117,"y":537,"width":703,"height":12}},{"id":"e6f965f5-6934-4bc4-9e24-95f989187f75","block_type":"box","text":"committed line of credit with a syndicate of banks that is intended to provide the Fund with a temporary","page_number":206,"box":{"x":116,"y":552,"width":768,"height":12}},{"id":"783294eb-231b-4bab-b3eb-6c693e57829e","block_type":"box","text":"source of cash to be used to meet redemption requests from shareholders in extraordinary or","page_number":206,"box":{"x":116,"y":568,"width":697,"height":12}},{"id":"ae4e530e-6277-4106-95f6-ec0c2d6e18ce","block_type":"box","text":"emergency circumstances.","page_number":206,"box":{"x":116,"y":583,"width":205,"height":12}},{"id":"a73e21bc-f7cd-476a-b4f2-a1b80987ee2d","block_type":"box","text":"Each Fund may redeem shares involuntarily to reimburse the Fund for any loss sustained by reason of","page_number":206,"box":{"x":117,"y":614,"width":766,"height":12}},{"id":"923003ba-a62e-488f-99b8-ba21a27ea82f","block_type":"box","text":"the failure of a shareholder to make full payment for shares purchased by the shareholder or to collect","page_number":206,"box":{"x":116,"y":630,"width":763,"height":12}},{"id":"49b01d55-c68d-47ff-91a7-a98a0dfc2f3a","block_type":"box","text":"any charge relating to a transaction effected for the benefit of a shareholder. Each Fund reserves the","page_number":206,"box":{"x":116,"y":645,"width":754,"height":12}},{"id":"023e7547-b8a7-4b41-8313-7234f8a9f4ea","block_type":"box","text":"express right to redeem shares of the Fund involuntarily at any time if the Fund’s Board of Directors","page_number":206,"box":{"x":116,"y":661,"width":738,"height":12}},{"id":"1927fd26-6ef7-4436-81c1-7506d4e0dde4","block_type":"box","text":"determines, in its sole discretion, that failure to do so may have adverse consequences to the holders","page_number":206,"box":{"x":116,"y":676,"width":753,"height":12}},{"id":"039faf67-d18a-4696-a2ef-aaf2caa7fbbe","block_type":"box","text":"of shares in the Fund. Upon such redemption the holders of shares so redeemed shall have no further","page_number":206,"box":{"x":116,"y":692,"width":759,"height":12}},{"id":"b650cb2b-9654-45e3-a1bc-2472d18346d5","block_type":"box","text":"right with respect thereto other than to receive payment of the redemption price.","page_number":206,"box":{"x":117,"y":707,"width":591,"height":12}},{"id":"3b3cc027-ebf9-45de-959a-a374c74e049d","block_type":"box","text":"Redemption","page_number":206,"box":{"x":117,"y":738,"width":95,"height":12}},{"id":"dfe1e059-0936-44a0-a884-684e4454368b","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":206,"box":{"x":117,"y":761,"width":504,"height":12}},{"id":"bec3f6e4-f9e4-4d10-9336-e678eba92fed","block_type":"box","text":"Redeem by Telephone","page_number":206,"box":{"x":117,"y":785,"width":177,"height":12}},{"id":"6e56c230-642f-4440-a146-bf258533300f","block_type":"box","text":": You may sell Investor Shares, excluding Investor P Shares, held at","page_number":206,"box":{"x":296,"y":785,"width":505,"height":12}},{"id":"1e918519-7dfb-4edc-9fec-f896ad7a7aba","block_type":"box","text":"BlackRock by telephone request if certain conditions are met and if the amount being sold is less than","page_number":206,"box":{"x":117,"y":800,"width":754,"height":12}},{"id":"fd86342f-90fe-4154-9849-8ce5a4bcf04f","block_type":"box","text":"(i) $100,000 for payments by check or (ii) $250,000 for payments through the Automated Clearing","page_number":206,"box":{"x":117,"y":815,"width":724,"height":13}},{"id":"40c7bdcf-8b5a-4ca4-b7bb-77d671fab147","block_type":"box","text":"House Network (“ACH”) or wire transfer. Certain redemption requests, such as those in excess of","page_number":206,"box":{"x":117,"y":831,"width":727,"height":12}},{"id":"096671a7-a3c4-480c-ab87-08219f17552d","block_type":"box","text":"these amounts, and those where (i) the Fund does not have verified banking information on file; or","page_number":206,"box":{"x":116,"y":847,"width":734,"height":12}},{"id":"e1e4c900-9d83-4106-a502-13b2394a56d6","block_type":"box","text":"(ii) the proceeds are not paid to the record owner at the record address, must be in writing with a","page_number":206,"box":{"x":117,"y":862,"width":720,"height":12}},{"id":"039446d1-d590-4d35-8bc4-6206c83e6722","block_type":"box","text":"medallion signature guarantee provided by any “eligible guarantor institution” as defined in","page_number":206,"box":{"x":117,"y":878,"width":674,"height":12}},{"id":"543bf6c9-cc0f-4743-a50f-37a100a6df74","block_type":"box","text":"II-147","page_number":206,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"f32e9efb-ec68-49f3-b31a-67846d79e9e7","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":206,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"db2cb8bc-76ec-45a5-b6bb-2e1685d72e19","block_type":"box","text":"Rule 17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and","page_number":207,"box":{"x":117,"y":87,"width":756,"height":12}},{"id":"2140f0a7-40ff-4f3d-861a-67ca3b21f44f","block_type":"box","text":"validity may be verified by the Transfer Agent through the use of industry publications. For Institutional","page_number":207,"box":{"x":116,"y":102,"width":763,"height":13}},{"id":"65aaff11-68db-4e4e-8a83-7dd332c42bff","block_type":"box","text":"Shares, certain redemption requests may require written instructions with a medallion signature","page_number":207,"box":{"x":116,"y":118,"width":713,"height":12}},{"id":"ec668768-60c1-4761-81ab-869d0dc2c480","block_type":"box","text":"guarantee. Call (800) 441-7762 for details. You can obtain a medallion signature guarantee stamp from","page_number":207,"box":{"x":116,"y":134,"width":772,"height":12}},{"id":"8462524b-8c35-488e-9f27-13812d87b992","block_type":"box","text":"a bank, securities dealer, securities broker, credit union, savings and loan association, national","page_number":207,"box":{"x":116,"y":149,"width":709,"height":12}},{"id":"a16efa57-c4e8-4726-b09e-12c81ea11dee","block_type":"box","text":"securities exchange or registered securities association. The three recognized medallion programs are","page_number":207,"box":{"x":116,"y":165,"width":767,"height":12}},{"id":"2183380d-1bd1-407b-8a13-89bfac8f7424","block_type":"box","text":"Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New York","page_number":207,"box":{"x":116,"y":180,"width":736,"height":12}},{"id":"a3b89a20-c5b1-4e21-84c0-8412065f7508","block_type":"box","text":"Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of","page_number":207,"box":{"x":116,"y":196,"width":727,"height":12}},{"id":"de401615-ff64-4bdf-b588-00974dc3e556","block_type":"box","text":"these programs will not be accepted. A notary public seal will not be acceptable. Generally, a properly","page_number":207,"box":{"x":116,"y":211,"width":761,"height":12}},{"id":"fbf47fc0-1a07-41aa-b715-961157e9d8e6","block_type":"box","text":"signed written request with any required signature guarantee is all that is required for a redemption. In","page_number":207,"box":{"x":116,"y":227,"width":761,"height":12}},{"id":"cfaef5fc-4027-4376-8276-412e3b183b47","block_type":"box","text":"some cases, however, other documents may be necessary. Additional documentary evidence of","page_number":207,"box":{"x":116,"y":242,"width":719,"height":12}},{"id":"f9763a12-2331-46f9-adac-af0f426ea1f5","block_type":"box","text":"authority is required by the Transfer Agent in the event redemption is requested by a corporation,","page_number":207,"box":{"x":116,"y":258,"width":726,"height":12}},{"id":"5e3f10dc-80b2-4e4b-ab42-74c05ac09dc8","block_type":"box","text":"partnership, trust, fiduciary, executor or administrator.","page_number":207,"box":{"x":117,"y":273,"width":402,"height":12}},{"id":"3e675fef-4dbe-46a4-8cd4-3d65e5108cce","block_type":"box","text":"If you make a redemption request before a Fund has collected payment for the purchase of shares, the","page_number":207,"box":{"x":117,"y":304,"width":769,"height":12}},{"id":"c9681b0b-e7fa-4d1d-8b90-3d5964f0649d","block_type":"box","text":"Fund may delay mailing your proceeds. This delay will usually not exceed ten days. A Fund, its","page_number":207,"box":{"x":117,"y":320,"width":709,"height":12}},{"id":"538cff04-6a8b-4563-b8a9-084012d57e42","block_type":"box","text":"Administrators and the Distributor will employ reasonable procedures to confirm that instructions","page_number":207,"box":{"x":116,"y":335,"width":719,"height":12}},{"id":"01b65fb3-cc0b-46f0-b595-6f5faa9b2ef5","block_type":"box","text":"communicated by telephone are genuine. Telephone redemption requests will not be honored if: (i) the","page_number":207,"box":{"x":116,"y":351,"width":767,"height":12}},{"id":"c13e7655-a5aa-47d3-8693-3d73e05f789c","block_type":"box","text":"accountholder is deceased, (ii) the proceeds are to be sent to someone other than the shareholder of","page_number":207,"box":{"x":116,"y":366,"width":756,"height":12}},{"id":"b85e9ce4-623d-4ee4-b224-05ac95b1e5ed","block_type":"box","text":"record, (iii) a Fund does not have verified information on file, (iv) the request is by an individual other","page_number":207,"box":{"x":117,"y":382,"width":749,"height":12}},{"id":"35dfd3a7-ca15-40f7-b557-aeb6fd905a88","block_type":"box","text":"than the accountholder of record, (v) the account is held by joint tenants who are divorced, (vi) the","page_number":207,"box":{"x":116,"y":397,"width":733,"height":12}},{"id":"3bfdfdaf-c03f-4882-b2bb-77694fc4af2f","block_type":"box","text":"address on the account has changed within the last 30 days or share certificates have been issued on","page_number":207,"box":{"x":116,"y":413,"width":762,"height":12}},{"id":"b3cfca52-24ba-4861-95f7-7960dee5fe83","block_type":"box","text":"the account, or (vii) to protect against fraud, if the caller is unable to provide the account number, the","page_number":207,"box":{"x":116,"y":428,"width":752,"height":12}},{"id":"ab20ac5c-170f-483f-a9e8-2f5274576dd8","block_type":"box","text":"name and address registered on the account and the social security number registered on the account.","page_number":207,"box":{"x":117,"y":444,"width":770,"height":12}},{"id":"913861f9-ac62-4acd-b0c8-72ef7f96ca7f","block_type":"box","text":"The Fund and its service providers will not be liable for any loss, liability, cost or expense for acting","page_number":207,"box":{"x":116,"y":459,"width":739,"height":12}},{"id":"a48dbce9-2407-4761-a047-96acfbedc110","block_type":"box","text":"upon telephone instructions that are reasonably believed to be genuine in accordance with such","page_number":207,"box":{"x":117,"y":475,"width":716,"height":12}},{"id":"c51a4e79-3bbf-4c16-93f4-07c4992e503b","block_type":"box","text":"procedures. Before telephone requests will be honored, signature approval from all shareholders of","page_number":207,"box":{"x":117,"y":490,"width":741,"height":12}},{"id":"84bf05dc-7d2b-413e-9fe1-d2d1f0ed49fe","block_type":"box","text":"record on the account must be obtained. The Fund may refuse a telephone redemption request if it","page_number":207,"box":{"x":117,"y":506,"width":738,"height":12}},{"id":"45468f66-45a5-4776-9381-8cece4ba0052","block_type":"box","text":"believes it is advisable to do so. During periods of substantial economic or market change, telephone","page_number":207,"box":{"x":117,"y":521,"width":754,"height":12}},{"id":"393b4d2f-121d-421c-bd77-3eb5ad9face9","block_type":"box","text":"redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":207,"box":{"x":117,"y":537,"width":691,"height":12}},{"id":"d38589f4-78d0-46af-afdd-7c02f0a5d64f","block_type":"box","text":"Redemption orders for Institutional Shares placed prior to 4:00 p.m. (Eastern time) on a business day","page_number":207,"box":{"x":117,"y":568,"width":756,"height":12}},{"id":"43ecb284-54e2-4d51-9d3b-693e83a1426a","block_type":"box","text":"will be priced at the NAV determined that day. If redemption orders are received by 4:00 p.m. (Eastern","page_number":207,"box":{"x":116,"y":583,"width":764,"height":12}},{"id":"f13b9f99-de38-4341-bb1c-200878492db1","block_type":"box","text":"time) on a business day, payment for redeemed Institutional Shares will normally be wired in Federal","page_number":207,"box":{"x":116,"y":599,"width":753,"height":12}},{"id":"ef8f2135-0496-4070-a660-8507f33bc4ad","block_type":"box","text":"Funds on the next business day. If the Federal Reserve Bank of Philadelphia is not open on the","page_number":207,"box":{"x":117,"y":614,"width":713,"height":12}},{"id":"f6b47ce2-9ca4-4d47-96ef-1122f74efb5b","block_type":"box","text":"business day following receipt of the redemption order, the redemption order will be accepted and","page_number":207,"box":{"x":117,"y":630,"width":729,"height":12}},{"id":"2579ef34-df55-4ec8-9ef2-dc52be01e693","block_type":"box","text":"processed the next succeeding business day when the Federal Reserve Bank of Philadelphia is open,","page_number":207,"box":{"x":117,"y":645,"width":762,"height":12}},{"id":"cc7f86f1-5195-44dd-88fc-0c42b8860ed6","block_type":"box","text":"provided that the Fund’s custodian is also open for business.","page_number":207,"box":{"x":117,"y":661,"width":449,"height":12}},{"id":"7d84879b-6f66-4729-aaad-856098741d32","block_type":"box","text":"Redeem by VRU","page_number":207,"box":{"x":117,"y":692,"width":127,"height":12}},{"id":"1fe5fae1-f07c-4059-85f8-64e6ebee4301","block_type":"box","text":": Investor class shares, excluding Investor P Shares, may also be redeemed by use","page_number":207,"box":{"x":247,"y":692,"width":620,"height":12}},{"id":"8a4fc320-1c3e-4d4a-80be-e51a6d6a5048","block_type":"box","text":"of a Fund’s automated voice response unit service (“VRU”). Payment for Investor class shares","page_number":207,"box":{"x":116,"y":707,"width":700,"height":12}},{"id":"19556753-0f68-44a2-a30b-0bbf4729a038","block_type":"box","text":"redeemed by VRU may be made for non-retirement accounts in amounts up to $25,000, either through","page_number":207,"box":{"x":117,"y":722,"width":761,"height":13}},{"id":"51a9f745-e5d2-4c64-bc15-90312638613a","block_type":"box","text":"check, ACH or wire.","page_number":207,"box":{"x":116,"y":738,"width":147,"height":11}},{"id":"daf9bcd6-84cb-4993-8927-8ead99eaae3a","block_type":"box","text":"Redeem by Internet:","page_number":207,"box":{"x":117,"y":769,"width":159,"height":12}},{"id":"f19ebf65-0373-42ad-8b13-8726080f0717","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging","page_number":207,"box":{"x":283,"y":769,"width":595,"height":12}},{"id":"e9e279f0-e376-4b20-b4f6-fe927e3053d7","block_type":"box","text":"onto the BlackRock website at www.blackrock.com. Proceeds from Internet redemptions may be sent","page_number":207,"box":{"x":116,"y":785,"width":753,"height":12}},{"id":"94c9f0a5-d05d-4c6b-9618-c4bed9e12dfd","block_type":"box","text":"via check, ACH or wire to the bank account of record. Payment for shares redeemed by Internet may","page_number":207,"box":{"x":116,"y":800,"width":749,"height":12}},{"id":"76a3af86-b1b8-44c8-96be-4545df04bddd","block_type":"box","text":"be made for non-retirement accounts up to $100,000 per account per day, either through check, ACH","page_number":207,"box":{"x":117,"y":815,"width":751,"height":13}},{"id":"4d8098b7-acf3-454a-b681-cafc88aacb47","block_type":"box","text":"or wire. Different maximums may apply to certain institutional investors.","page_number":207,"box":{"x":116,"y":831,"width":535,"height":12}},{"id":"16783172-c974-4518-9429-75a3670572b5","block_type":"box","text":"Redeem in Writing:","page_number":207,"box":{"x":117,"y":862,"width":157,"height":12}},{"id":"fd40f9f8-fb9a-4d92-8f24-4626796be121","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without","page_number":207,"box":{"x":275,"y":862,"width":599,"height":12}},{"id":"e5d45ca1-d53e-4f7c-804d-6e6d3baa1b1d","block_type":"box","text":"charge by writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption","page_number":207,"box":{"x":116,"y":878,"width":761,"height":12}},{"id":"18971a63-dd8e-4e47-8f19-561875cf1a2f","block_type":"box","text":"II-148","page_number":207,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"b11010df-4a5f-4f71-9f4a-6f5dc6bbe981","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":207,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"20e132cf-5b7f-4acf-909c-fba11ac52adb","block_type":"box","text":"requests delivered other than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn","page_number":208,"box":{"x":117,"y":87,"width":729,"height":12}},{"id":"31ea58e6-d85a-4395-9f3e-b77e2ab82da4","block_type":"box","text":"Avenue, Suite 102, Pittsburgh, Pennsylvania 15222. If you hold share certificates issued by your Fund,","page_number":208,"box":{"x":116,"y":102,"width":768,"height":13}},{"id":"41299e7f-efa6-456d-9a85-1a665951a592","block_type":"box","text":"the letter must be accompanied by certificates for the shares. All shareholders on the account must","page_number":208,"box":{"x":116,"y":118,"width":741,"height":12}},{"id":"3cfb6163-fde4-4f39-9153-0ccfecf96a57","block_type":"box","text":"sign the letter. A medallion signature guarantee will generally be required but may be waived in certain","page_number":208,"box":{"x":116,"y":134,"width":766,"height":12}},{"id":"7c0c3afd-cda3-4333-87c9-b26e02850e41","block_type":"box","text":"limited circumstances. You can obtain a medallion signature guarantee stamp from a bank, securities","page_number":208,"box":{"x":117,"y":149,"width":756,"height":12}},{"id":"8fa9959a-e660-490f-b9a8-25a9d0c40343","block_type":"box","text":"dealer, securities broker, credit union, savings and loan association, national securities exchange or","page_number":208,"box":{"x":116,"y":165,"width":746,"height":12}},{"id":"218b6acf-8643-4bb4-ba52-506dba64013d","block_type":"box","text":"registered securities association. A notary public seal will not be acceptable. If you hold stock","page_number":208,"box":{"x":117,"y":180,"width":696,"height":12}},{"id":"b68ff7d7-4951-4064-b33f-d18001681a77","block_type":"box","text":"certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check,","page_number":208,"box":{"x":116,"y":196,"width":749,"height":12}},{"id":"df9b50ac-e3fc-49f4-8999-0e6b0c4e1641","block_type":"box","text":"ACH or wire to the bank account of record.","page_number":208,"box":{"x":116,"y":211,"width":323,"height":10}},{"id":"f14a5d14-d745-4d63-bd07-d77e0f1f91eb","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock","page_number":208,"box":{"x":116,"y":239,"width":754,"height":12}},{"id":"ddaf7a08-84ce-4339-9819-e01e60ad45c4","block_type":"box","text":"Shares may be made in the manner and amounts described in the Prospectuses.","page_number":208,"box":{"x":117,"y":254,"width":608,"height":13}},{"id":"c2705be9-c4d2-43d5-bd8e-3c6fbfc8fe71","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":208,"box":{"x":116,"y":282,"width":707,"height":12}},{"id":"c5759bb4-4315-4fb3-9c8a-4a8ecd233c60","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one","page_number":208,"box":{"x":117,"y":310,"width":740,"height":12}},{"id":"f354f203-55b8-4b05-a3cd-c0d668805503","block_type":"box","text":"business day of receipt of the proper notice of redemption. A Fund may delay the mailing of a","page_number":208,"box":{"x":117,"y":326,"width":697,"height":12}},{"id":"1f5596d9-432a-4367-b572-5018448eb6e6","block_type":"box","text":"redemption check until good payment (that is, cash, Federal funds or certified check drawn on a U.S.","page_number":208,"box":{"x":117,"y":341,"width":753,"height":12}},{"id":"d5c1a1c9-95ce-4456-ade6-4c300b8a1973","block_type":"box","text":"bank) has been collected for the purchase of Fund shares, which delay will usually not exceed 10","page_number":208,"box":{"x":117,"y":357,"width":726,"height":12}},{"id":"99eaa429-2b15-4c30-a935-0f88f76bb9c1","block_type":"box","text":"days. If your account is held directly with the Transfer Agent and contains a fractional share balance","page_number":208,"box":{"x":116,"y":372,"width":747,"height":12}},{"id":"0e3b7075-7115-4a8b-a80d-53ca3658ea88","block_type":"box","text":"following a redemption, the fractional share balance will be automatically redeemed by the Fund.","page_number":208,"box":{"x":116,"y":388,"width":722,"height":12}},{"id":"7dc937ce-89fb-4db6-aa67-4800725f1cf8","block_type":"box","text":"Note on Low Balance Accounts.","page_number":208,"box":{"x":117,"y":416,"width":242,"height":9}},{"id":"17ece9dd-5117-441e-b5b6-639d9369d97d","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":208,"box":{"x":360,"y":416,"width":527,"height":12}},{"id":"7c77371d-609d-49bf-a9c5-63f14e247995","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account","page_number":208,"box":{"x":117,"y":430,"width":735,"height":13}},{"id":"c370ddd6-db56-46c1-9d3b-cce4b93ab003","block_type":"box","text":"(“Fund Minimum”), and may redeem the shares in your account if the NAV of those shares in your","page_number":208,"box":{"x":117,"y":447,"width":731,"height":12}},{"id":"7ecf3eb2-ba2b-41ef-8d1a-2a4153c9dc47","block_type":"box","text":"account falls below $500 for any reason, including market fluctuation.","page_number":208,"box":{"x":116,"y":461,"width":519,"height":13}},{"id":"c1d4a4e6-afab-40ca-aa0a-c0e91a8f10c2","block_type":"box","text":"You will be notified that the value of your account is less than the Fund Minimum before the Fund","page_number":208,"box":{"x":116,"y":490,"width":727,"height":12}},{"id":"70f70729-9b65-4ca8-9af5-ffeba75b31fd","block_type":"box","text":"makes any involuntary redemption. This notification will provide you with a 90 calendar day period to","page_number":208,"box":{"x":117,"y":506,"width":749,"height":12}},{"id":"54703712-85c3-4fe8-9a1d-c2eb3f376fc8","block_type":"box","text":"make an additional investment in order to bring the value of your account to at least $500 before the","page_number":208,"box":{"x":117,"y":520,"width":747,"height":13}},{"id":"f8836622-fe9f-4b8e-94be-7c8a7fac5417","block_type":"box","text":"Fund makes an involuntary redemption. This involuntary redemption will not charge any deferred sales","page_number":208,"box":{"x":117,"y":537,"width":766,"height":12}},{"id":"6d66fbea-2a38-4ea4-9cef-561f55006610","block_type":"box","text":"charge, and may not apply to accounts of certain employer-sponsored retirement plans (not including","page_number":208,"box":{"x":116,"y":552,"width":756,"height":12}},{"id":"067153c8-0339-4765-a73e-265debea0cdb","block_type":"box","text":"IRAs), qualified state tuition plan (529 Plan) accounts, and select fee-based programs at your financial","page_number":208,"box":{"x":117,"y":568,"width":763,"height":12}},{"id":"11ec5e8c-65ba-4d89-ba9f-d78e30a30bdd","block_type":"box","text":"intermediary.","page_number":208,"box":{"x":117,"y":583,"width":101,"height":12}},{"id":"239249ab-36ce-41b8-b83d-cd0dbc925a1b","block_type":"box","text":"Repurchase","page_number":208,"box":{"x":117,"y":611,"width":100,"height":12}},{"id":"fc260536-5c57-4960-92ec-41e97ef8460b","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers.","page_number":208,"box":{"x":116,"y":633,"width":729,"height":12}},{"id":"93d240f3-2c1f-41d7-8c2f-3cc6c76e955c","block_type":"box","text":"Shares will be priced at the NAV of the Fund next determined after receipt of the repurchase order by a","page_number":208,"box":{"x":116,"y":648,"width":771,"height":12}},{"id":"4a59b988-371f-4c06-9784-caaa015ab4fb","block_type":"box","text":"Selling Dealer that has been authorized by the Distributor by contract to accept such orders. As to","page_number":208,"box":{"x":116,"y":664,"width":726,"height":12}},{"id":"76284e49-e069-41b0-b8c7-cad9bb19412a","block_type":"box","text":"repurchase orders received by Selling Dealers prior to the close of business on the NYSE (generally,","page_number":208,"box":{"x":117,"y":679,"width":746,"height":12}},{"id":"8e73b850-51b1-4fc2-9393-001c659d420a","block_type":"box","text":"the NYSE closes at 4:00 p.m. Eastern time), on the day the order is placed, which includes orders","page_number":208,"box":{"x":116,"y":695,"width":726,"height":12}},{"id":"65e9f6c3-9961-4325-b823-8dd1dd4de6ed","block_type":"box","text":"received after the close of business on the previous day, the repurchase price is the NAV determined","page_number":208,"box":{"x":117,"y":710,"width":749,"height":12}},{"id":"ee76dea6-3175-4116-b857-8e3d5f13adba","block_type":"box","text":"as of the close of business on the NYSE on that day. If the orders for repurchase are not received by","page_number":208,"box":{"x":116,"y":726,"width":749,"height":12}},{"id":"2aa025ac-45b2-4972-b800-ae0d7ae694a9","block_type":"box","text":"the Selling Dealer before the close of business on the NYSE, such orders are deemed received on the","page_number":208,"box":{"x":116,"y":741,"width":760,"height":12}},{"id":"e86183a2-3d69-4c13-a23b-6593d28af3fa","block_type":"box","text":"next business day.","page_number":208,"box":{"x":117,"y":757,"width":137,"height":12}},{"id":"50745c69-19f2-43c8-b656-2b5b1d78d7c4","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund","page_number":208,"box":{"x":116,"y":785,"width":738,"height":12}},{"id":"b4946bcf-5bbf-4afa-8671-21268c30ba70","block_type":"box","text":"(other than any applicable CDSC or redemption fee). However, Selling Dealers may charge a","page_number":208,"box":{"x":117,"y":800,"width":691,"height":12}},{"id":"9a426646-d09c-4676-aa55-a9758275fc92","block_type":"box","text":"processing fee in connection with such transactions. In addition, securities firms that do not have","page_number":208,"box":{"x":117,"y":816,"width":716,"height":12}},{"id":"b4465da6-6c6e-4263-a23f-a41a090a0f33","block_type":"box","text":"selected dealer agreements with the Distributor may impose a transaction charge for transmitting the","page_number":208,"box":{"x":116,"y":831,"width":753,"height":12}},{"id":"159aae3a-e22d-4bd5-a71f-b0e3477039c6","block_type":"box","text":"notice of repurchase to the Fund. Each Fund reserves the right to reject any order for repurchase. A","page_number":208,"box":{"x":117,"y":847,"width":746,"height":12}},{"id":"fa484be4-7946-49c3-8edb-d04492ccb25c","block_type":"box","text":"shareholder whose order for repurchase is rejected by a Fund, however, may redeem shares as set","page_number":208,"box":{"x":116,"y":862,"width":746,"height":12}},{"id":"f9b7d5bd-f5b8-49f1-8942-80da1d9dee35","block_type":"box","text":"out above.","page_number":208,"box":{"x":116,"y":878,"width":83,"height":9}},{"id":"88e111cc-30e6-43f1-9762-a491299ea67f","block_type":"box","text":"II-149","page_number":208,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"47a65314-916a-4555-b56a-2ce7762a2f80","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":208,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"805313e2-b1e5-41a8-9f9e-1e35ecdeb613","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":209,"box":{"x":117,"y":87,"width":484,"height":12}},{"id":"9ce8952a-2a54-4564-a1bb-a651b813c515","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable,","page_number":209,"box":{"x":117,"y":110,"width":691,"height":12}},{"id":"66b29b00-9d73-4ad3-b7f4-66e028ef55c5","block_type":"box","text":"shareholders may reinvest all or a portion of their redemption proceeds (after paying any applicable","page_number":209,"box":{"x":116,"y":126,"width":743,"height":12}},{"id":"7e7dbf84-c135-4af8-8278-3ef5086f3d8e","block_type":"box","text":"CDSC) in Investor A or Investor P Shares of the same or another BlackRock fund without paying a","page_number":209,"box":{"x":117,"y":141,"width":735,"height":12}},{"id":"ee1e9aa2-0c35-4c92-a44e-297cbf57d41c","block_type":"box","text":"front-end sales charge. This right may be exercised within 90 days of the redemption, provided that the","page_number":209,"box":{"x":116,"y":157,"width":769,"height":12}},{"id":"78c97e54-e48f-4d6d-9570-2304644cde00","block_type":"box","text":"Investor A or Investor P Shares, as applicable, of that fund is currently open to new investors or the","page_number":209,"box":{"x":117,"y":172,"width":741,"height":12}},{"id":"1436645d-72d0-4027-921c-6e447dcc9fe0","block_type":"box","text":"shareholder has a current account in that closed fund. Shares will be purchased at the NAV calculated","page_number":209,"box":{"x":116,"y":188,"width":765,"height":12}},{"id":"53f42676-c54f-4017-84ae-2cffc3018d71","block_type":"box","text":"at the close of trading on the day the request is received in good order. To exercise this privilege, the","page_number":209,"box":{"x":116,"y":203,"width":754,"height":12}},{"id":"7f3e4f3b-c3af-421d-a271-22969127e507","block_type":"box","text":"Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":209,"box":{"x":116,"y":219,"width":714,"height":12}},{"id":"052878c2-fb5a-4a3a-8780-6b3605909337","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the","page_number":209,"box":{"x":117,"y":234,"width":767,"height":12}},{"id":"a7f69c96-ac3a-4491-b6f9-1cdb0346157c","block_type":"box","text":"tax consequences of exercising this reinstatement privilege.","page_number":209,"box":{"x":116,"y":250,"width":449,"height":12}},{"id":"93322d64-95f4-4e2f-971d-90dd4f96ee31","block_type":"box","text":"S","page_number":209,"box":{"x":409,"y":296,"width":9,"height":10}},{"id":"0692885d-4465-4027-812a-41a855673c9c","block_type":"box","text":"HAREHOLDER","page_number":209,"box":{"x":420,"y":299,"width":95,"height":7}},{"id":"8f03909a-f6e0-4434-9f4d-10a8c13b9b79","block_type":"box","text":"S","page_number":209,"box":{"x":515,"y":296,"width":16,"height":10}},{"id":"f8bde762-d367-4da5-80d8-372a2d39ac94","block_type":"box","text":"ERVICES","page_number":209,"box":{"x":532,"y":299,"width":59,"height":7}},{"id":"ba8ba932-ac7c-4e1d-a005-f5308b324840","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to","page_number":209,"box":{"x":117,"y":327,"width":714,"height":12}},{"id":"a46b9986-5710-4ac3-afa1-0527eb344ca8","block_type":"box","text":"facilitate investment in its shares. You can obtain more information about these services from each","page_number":209,"box":{"x":116,"y":343,"width":738,"height":9}},{"id":"21e09efe-896a-417a-a2d8-d16bfe7b692c","block_type":"box","text":"Fund by calling the telephone number on the cover page, or from the Distributor, your financial adviser,","page_number":209,"box":{"x":117,"y":358,"width":769,"height":12}},{"id":"7847c351-57c5-44cc-82ba-8eebc9fbb8cb","block_type":"box","text":"your selected securities dealer or other financial intermediary. Certain of these services are available","page_number":209,"box":{"x":116,"y":374,"width":753,"height":12}},{"id":"ea79627f-12f1-412f-8152-fb52e5dcedb4","block_type":"box","text":"only to U.S. investors.","page_number":209,"box":{"x":116,"y":389,"width":168,"height":12}},{"id":"a104d6a5-7128-4453-9f47-9798a744f778","block_type":"box","text":"Investment Account","page_number":209,"box":{"x":117,"y":420,"width":164,"height":10}},{"id":"b3b0cac0-7184-43c5-b525-8691f15b3163","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive","page_number":209,"box":{"x":117,"y":444,"width":698,"height":12}},{"id":"1dd04b3d-a8f6-4edf-ae62-b5a4183dccba","block_type":"box","text":"statements, at least quarterly, from the Transfer Agent. These statements will serve as confirmations","page_number":209,"box":{"x":116,"y":459,"width":752,"height":12}},{"id":"42394658-37e6-49a0-9de8-414096b89a2d","block_type":"box","text":"for automatic investment purchases and the reinvestment of dividends. The statements also will show","page_number":209,"box":{"x":116,"y":475,"width":760,"height":12}},{"id":"f960c638-0f98-413e-83a1-9a6e910b8461","block_type":"box","text":"any other activity in your Investment Account since the last statement. You also will receive separate","page_number":209,"box":{"x":116,"y":490,"width":752,"height":12}},{"id":"d176f25b-0b08-4dd2-a86b-4673101a7301","block_type":"box","text":"confirmations for each purchase or sale transaction other than automatic investment purchases and","page_number":209,"box":{"x":116,"y":506,"width":746,"height":12}},{"id":"1a7ffac4-7a0d-48bd-be94-653e5fca7ba3","block_type":"box","text":"the reinvestment of dividends. If your Investment Account is held at the Transfer Agent you may make","page_number":209,"box":{"x":116,"y":521,"width":763,"height":12}},{"id":"f958a3e0-2cb4-4989-8724-a1ccae5b11ee","block_type":"box","text":"additions to it at any time by mailing a check directly to the Transfer Agent. Each Fund limits purchases","page_number":209,"box":{"x":116,"y":537,"width":771,"height":12}},{"id":"5d33d0c6-8356-439f-ab89-223831067240","block_type":"box","text":"by personal check to $500,000 per trade. You may also maintain an account through a selected","page_number":209,"box":{"x":117,"y":551,"width":715,"height":13}},{"id":"38f149cf-5a68-47d5-ab7a-81d427b15bef","block_type":"box","text":"securities dealer or other financial intermediary. If you transfer shares out of an account maintained","page_number":209,"box":{"x":116,"y":568,"width":742,"height":12}},{"id":"f2a6c135-2417-4da1-923f-5a73f0e8dfa2","block_type":"box","text":"with a selected securities dealer or other financial intermediary, an Investment Account in your name","page_number":209,"box":{"x":116,"y":583,"width":752,"height":12}},{"id":"62e391d9-9793-4f81-bb4f-f773f18d1ca9","block_type":"box","text":"may be opened automatically at the Transfer Agent.","page_number":209,"box":{"x":117,"y":599,"width":390,"height":12}},{"id":"81e2308c-89c1-4aca-a826-72f3cb0cb7bd","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to","page_number":209,"box":{"x":116,"y":630,"width":723,"height":12}},{"id":"4f80a929-5fd2-45a0-989e-8526311cea8d","block_type":"box","text":"another securities dealer or other financial intermediary that has entered into an agreement with the","page_number":209,"box":{"x":116,"y":645,"width":745,"height":12}},{"id":"66aa7627-1460-4f99-b6e4-506761c10586","block_type":"box","text":"Distributor. Certain shareholder services may not be available for the transferred shares. All future","page_number":209,"box":{"x":117,"y":661,"width":727,"height":12}},{"id":"7bb9377b-f1d4-4f06-bd47-f0b08e57d91b","block_type":"box","text":"trading of these assets must be coordinated by the new firm. If you wish to transfer your shares to a","page_number":209,"box":{"x":116,"y":676,"width":740,"height":12}},{"id":"154dec47-7679-4d04-b694-e52c59536d2e","block_type":"box","text":"securities dealer or other financial intermediary that has not entered into an agreement with the","page_number":209,"box":{"x":116,"y":692,"width":706,"height":12}},{"id":"92d8405a-28a9-4b6c-976e-c49288c1eb98","block_type":"box","text":"Distributor, you must either (i) redeem your shares, paying any applicable CDSC or (ii) continue to","page_number":209,"box":{"x":117,"y":707,"width":727,"height":12}},{"id":"41cd195f-a4f3-422a-9a0d-6950241a8e46","block_type":"box","text":"maintain an Investment Account at the Transfer Agent for those shares. You also may request that the","page_number":209,"box":{"x":117,"y":723,"width":759,"height":12}},{"id":"5ae9dc65-b02d-4208-8a8b-d106f79c51e4","block_type":"box","text":"new securities dealer or other financial intermediary maintain the shares in an account at the Transfer","page_number":209,"box":{"x":117,"y":738,"width":754,"height":12}},{"id":"f2317f4d-39fe-45ac-b181-203a5d9dc332","block_type":"box","text":"Agent registered in the name of the securities dealer or other financial intermediary for your benefit","page_number":209,"box":{"x":116,"y":754,"width":733,"height":12}},{"id":"8bde3134-014e-4467-88de-c9a6c038c255","block_type":"box","text":"whether the securities dealer or other financial intermediary has entered into a selected dealer","page_number":209,"box":{"x":116,"y":769,"width":700,"height":12}},{"id":"3d3e1444-113e-497e-a7f0-a984f93a15d3","block_type":"box","text":"agreement or not. In the interest of economy and convenience and because of the operating","page_number":209,"box":{"x":116,"y":785,"width":685,"height":12}},{"id":"abcc365b-2626-4aaf-a412-102cef0c8ec8","block_type":"box","text":"procedures of each Fund, share certificates will not be issued physically. Shares are maintained by","page_number":209,"box":{"x":117,"y":800,"width":734,"height":12}},{"id":"1b37aa0c-48ef-4a93-956f-79f4bef2403b","block_type":"box","text":"each Fund on its register maintained by the Transfer Agent and the holders thereof will have the same","page_number":209,"box":{"x":116,"y":816,"width":759,"height":12}},{"id":"6b834598-5ee7-42ed-bbc1-be7ab0de963b","block_type":"box","text":"rights and ownership with respect to such shares as if certificates had been issued.","page_number":209,"box":{"x":117,"y":831,"width":621,"height":12}},{"id":"03d8b041-0047-4f1a-9a90-8411b9089872","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement","page_number":209,"box":{"x":117,"y":862,"width":754,"height":12}},{"id":"03d62c03-07ee-4391-9611-cb742161d990","block_type":"box","text":"account, from one selected securities dealer to another securities dealer or other financial","page_number":209,"box":{"x":116,"y":878,"width":671,"height":11}},{"id":"367c15e4-ece7-456f-8eaf-a13efdfb2123","block_type":"box","text":"II-150","page_number":209,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"618b8870-2550-457a-9a42-3a88ab43bc82","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":209,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"27177368-ed16-473d-8234-d4c8383853c9","block_type":"box","text":"intermediary, you should be aware that if the new firm will not take delivery of shares of the Fund, you","page_number":210,"box":{"x":117,"y":87,"width":759,"height":12}},{"id":"19767c29-b8f7-4fb2-96de-1d18b0b913f1","block_type":"box","text":"must either redeem the shares (paying any applicable CDSC) so that the cash proceeds can be","page_number":210,"box":{"x":117,"y":102,"width":714,"height":13}},{"id":"a221e874-2882-457c-afe7-68f62af7277f","block_type":"box","text":"transferred to the account at the new firm, or you must continue to maintain a retirement account at the","page_number":210,"box":{"x":116,"y":118,"width":770,"height":12}},{"id":"c3806aea-030f-4496-be45-e8eb9f5c4180","block_type":"box","text":"original selected securities dealer for those shares.","page_number":210,"box":{"x":116,"y":134,"width":383,"height":12}},{"id":"afea3be2-20bf-4790-a18d-0f8333ca77c4","block_type":"box","text":"Exchange Privilege","page_number":210,"box":{"x":117,"y":165,"width":158,"height":12}},{"id":"c19f0c72-a9b0-4645-a3fd-01a7fabd1c45","block_type":"box","text":"U.S. shareholders of Investor A, Investor A1, Investor C, Investor P, Class K, Institutional and Class G","page_number":210,"box":{"x":117,"y":192,"width":763,"height":11}},{"id":"8947ca77-321b-4873-90b2-6865f2e2a3b8","block_type":"box","text":"Shares of each Fund have an exchange privilege with certain other Funds. However, Investor A1","page_number":210,"box":{"x":116,"y":207,"width":725,"height":12}},{"id":"4dcf42d1-7037-406e-817d-97e102da8f88","block_type":"box","text":"Shares may only exchange out. The minimum amount for exchanges of Investor class shares is","page_number":210,"box":{"x":116,"y":223,"width":717,"height":12}},{"id":"e6c8a923-56c2-46ff-9c5e-dbb452e3b267","block_type":"box","text":"$1,000, although you may exchange less than $1,000 if you already have an account in the Fund into","page_number":210,"box":{"x":116,"y":237,"width":758,"height":13}},{"id":"28e7e905-df57-46e1-aab2-f86db74f093c","block_type":"box","text":"which you are exchanging. You may only exchange into a share class and a Fund that are open to new","page_number":210,"box":{"x":116,"y":254,"width":772,"height":12}},{"id":"44d12d94-f73b-4cf1-905e-5b55a1fe77af","block_type":"box","text":"investors or in which you have a current account if the class or fund is closed to new investors. Before","page_number":210,"box":{"x":117,"y":269,"width":761,"height":12}},{"id":"7884571b-d3f0-4cf3-aede-fefe06089692","block_type":"box","text":"effecting an exchange, you should obtain a currently effective prospectus of the fund into which you","page_number":210,"box":{"x":116,"y":285,"width":744,"height":12}},{"id":"10362f7e-8a70-427c-8ef2-3ecc9c0010f5","block_type":"box","text":"wish to make the exchange. Exercise of the exchange privilege is treated as a sale of the exchanged","page_number":210,"box":{"x":116,"y":300,"width":754,"height":12}},{"id":"57cd58b1-665c-4490-84f8-fe71e51772b7","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":210,"box":{"x":116,"y":316,"width":630,"height":12}},{"id":"e4f93a61-e17c-4a1e-8a56-16e743f05087","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":210,"box":{"x":116,"y":347,"width":689,"height":13}},{"id":"45453374-1876-4ed8-905f-b701d7b0ffbc","block_type":"box","text":"Institutional Shares are exchangeable with Institutional Shares of other Funds. Investor A and Investor","page_number":210,"box":{"x":117,"y":363,"width":763,"height":12}},{"id":"3589a58e-1ea7-42c6-816d-a47c6730094c","block_type":"box","text":"A1 Shares are exchangeable for Investor A Shares of other Funds to the extent such shares are","page_number":210,"box":{"x":116,"y":378,"width":719,"height":13}},{"id":"ebb05f5f-8847-4963-a6ff-d087c10c4e21","block_type":"box","text":"offered by your financial intermediary. Investor P Shares are exchangeable for Investor P Shares of","page_number":210,"box":{"x":116,"y":394,"width":744,"height":12}},{"id":"7b26b7e7-ce3b-4ebd-bcf1-f5470c210829","block_type":"box","text":"other Funds, to the extent such shares are offered by your financial intermediary. Class K Shares are","page_number":210,"box":{"x":116,"y":409,"width":756,"height":13}},{"id":"c4a61060-bf1b-4af9-9ddc-7a3dea40125d","block_type":"box","text":"exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable for Class G","page_number":210,"box":{"x":116,"y":425,"width":722,"height":12}},{"id":"f521b2f4-32de-4ebb-9de6-afc5ea109ff1","block_type":"box","text":"Shares of other Funds.","page_number":210,"box":{"x":116,"y":440,"width":176,"height":10}},{"id":"ec292d85-5ca7-4e02-8570-66fa6e2c9471","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of","page_number":210,"box":{"x":117,"y":472,"width":764,"height":12}},{"id":"5f616c57-4a5e-47ae-8b67-bfaf8d422bf2","block_type":"box","text":"a money market fund are effected on the basis of relative NAV per Institutional Share. Exchanges of","page_number":210,"box":{"x":116,"y":488,"width":748,"height":12}},{"id":"f88272fa-e83d-4244-856f-93de17f66f18","block_type":"box","text":"Investor A or Investor A1 Shares outstanding (“outstanding Investor A Shares”) for Investor A Shares","page_number":210,"box":{"x":117,"y":503,"width":754,"height":12}},{"id":"9abb21dc-b3fa-4de2-9e95-728e4811ac57","block_type":"box","text":"of a second fund, or for shares of a money market fund (“new Investor A Shares”) are effected on the","page_number":210,"box":{"x":116,"y":519,"width":756,"height":12}},{"id":"bdf29175-8dc4-4bc3-9add-27a71583b0d0","block_type":"box","text":"basis of relative NAV per share. Exchanges of Investor P Shares outstanding for Investor P Shares of","page_number":210,"box":{"x":117,"y":534,"width":759,"height":12}},{"id":"bb960a14-6e3d-426b-833e-1094c319e973","block_type":"box","text":"a second fund are effected on the basis of relative NAV per share. Exchanges of Class K Shares","page_number":210,"box":{"x":116,"y":550,"width":724,"height":12}},{"id":"aeeec808-41b6-4106-bf01-53c0c881ff4f","block_type":"box","text":"outstanding for Class K Shares of a second fund, or","page_number":210,"box":{"x":116,"y":565,"width":390,"height":12}},{"id":"91413d89-43d7-4012-8b4e-12507253de02","block_type":"box","text":"for shares of a money market fund are effected on","page_number":210,"box":{"x":506,"y":565,"width":378,"height":12}},{"id":"d64bacfc-563f-4798-ba72-dec0dd54c86b","block_type":"box","text":"the basis of relative NAV per share. Exchanges of Class G Shares outstanding for Class G Shares of a","page_number":210,"box":{"x":116,"y":581,"width":770,"height":12}},{"id":"8ab9e329-0bde-42c2-b471-2bcb5af3d9bd","block_type":"box","text":"second fund are effected on the basis of relative NAV per share.","page_number":210,"box":{"x":116,"y":596,"width":483,"height":12}},{"id":"d2079ea3-5cf0-4ee0-957f-71cd2fabb57f","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":210,"box":{"x":116,"y":628,"width":250,"height":12}},{"id":"425ff3aa-fffb-402d-b0c7-632b45f06c7d","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding","page_number":210,"box":{"x":367,"y":628,"width":495,"height":12}},{"id":"190c9dec-c3e1-428a-8644-61ac71a8f593","block_type":"box","text":"(“outstanding Investor C Shares”) may exchange their shares for Investor C Shares of a second Fund","page_number":210,"box":{"x":117,"y":644,"width":758,"height":12}},{"id":"7d1774dc-68c6-4979-ac28-4a7672f51b2e","block_type":"box","text":"(“new Investor C Shares”) or for shares of a money market fund (“new money market fund Shares”) on","page_number":210,"box":{"x":117,"y":659,"width":766,"height":12}},{"id":"51aab6be-de59-4e82-8e47-b50da7cf4a74","block_type":"box","text":"the basis of relative NAV per share, without the payment of any CDSC. Certain Funds impose different","page_number":210,"box":{"x":116,"y":675,"width":762,"height":12}},{"id":"d7722c94-ec2a-4cf1-8b50-5e507e12db10","block_type":"box","text":"CDSC schedules. For purposes of computing the CDSC upon redemption of new Investor C Shares or","page_number":210,"box":{"x":117,"y":690,"width":761,"height":12}},{"id":"f4ba7961-cbd9-4a86-b5a1-c9e66b5138ae","block_type":"box","text":"new money market fund Shares, as applicable, the time you held both the exchanged Investor C","page_number":210,"box":{"x":117,"y":706,"width":715,"height":12}},{"id":"0188be99-4106-487f-b711-17a5221ef2e8","block_type":"box","text":"Shares and the new Investor C Shares or new money market fund Shares will count towards the","page_number":210,"box":{"x":116,"y":721,"width":716,"height":12}},{"id":"64bae365-df1f-4622-ab0c-7079c1103c25","block_type":"box","text":"holding period of the new Investor C Shares or new money market fund Shares.","page_number":210,"box":{"x":117,"y":737,"width":591,"height":12}},{"id":"7a3bf419-f657-4cad-8aa5-d62b2ad9831b","block_type":"box","text":"Exchanges of Service Shares.","page_number":210,"box":{"x":116,"y":768,"width":223,"height":12}},{"id":"e37af9e5-c9e1-4a6d-aafd-c09168f9f906","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are","page_number":210,"box":{"x":347,"y":768,"width":530,"height":12}},{"id":"8ad8e35b-cd4c-4404-b0e5-0032f077714e","block_type":"box","text":"covered by selected dealer agreements with the Distributor.","page_number":210,"box":{"x":116,"y":784,"width":442,"height":12}},{"id":"7570c720-8dd9-490e-9732-b4bb4b1acca5","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":210,"box":{"x":116,"y":816,"width":356,"height":12}},{"id":"a34f3ff9-db36-4fb6-806f-a62c35408790","block_type":"box","text":"You may exchange any class of Investor class shares,","page_number":210,"box":{"x":478,"y":816,"width":404,"height":12}},{"id":"b7389cca-67d2-468e-8d32-a94eeda63d4a","block_type":"box","text":"excluding Investor P Shares, for shares of an affiliated money market fund. If you exchange into","page_number":210,"box":{"x":116,"y":831,"width":717,"height":12}},{"id":"919e89a7-e825-4e9b-8d16-8b5dcbc3098b","block_type":"box","text":"BlackRock Summit Cash Reserves Fund (“Summit”), a series of BlackRock Financial Institutions","page_number":210,"box":{"x":117,"y":847,"width":720,"height":12}},{"id":"174a3fd0-50ff-48ea-a287-625395a64ad5","block_type":"box","text":"Series Trust, you will receive one of two classes of shares: exchanges of Investor A, Investor A1 and","page_number":210,"box":{"x":116,"y":862,"width":753,"height":12}},{"id":"5e2c913b-ef7b-4ef0-a03c-630ac9cf6502","block_type":"box","text":"Institutional Shares of a Fund will receive Investor A Shares of Summit and exchanges of Investor C","page_number":210,"box":{"x":117,"y":878,"width":747,"height":12}},{"id":"d5fbc248-a6e7-4b41-9924-7d1210b81d26","block_type":"box","text":"II-151","page_number":210,"box":{"x":480,"y":909,"width":38,"height":9}},{"id":"c4f42d5e-7305-42ac-bd1c-2030d4b3edca","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":210,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"224081b1-540e-44ad-a5c2-200780138814","block_type":"box","text":"Shares of a Fund will receive Investor C Shares of Summit. You may exchange Investor A Shares of","page_number":211,"box":{"x":116,"y":87,"width":751,"height":12}},{"id":"30e7e895-717c-4d55-b923-e074df405579","block_type":"box","text":"Summit back into Investor A or Institutional Shares of a Fund, if you are eligible to hold such shares.","page_number":211,"box":{"x":116,"y":102,"width":748,"height":13}},{"id":"e3cbcdf9-152e-4a20-951f-dda67a2189a1","block_type":"box","text":"You may exchange Investor C Shares of Summit back into Investor C Shares of a Fund and, in the","page_number":211,"box":{"x":116,"y":118,"width":739,"height":12}},{"id":"b00144d2-3c01-4021-a6a8-0e3dfd9b2604","block_type":"box","text":"event of such an exchange, the period of time that you held Investor C Shares of Summit will count","page_number":211,"box":{"x":116,"y":134,"width":740,"height":12}},{"id":"784143a6-107c-4141-8638-81a259127226","block_type":"box","text":"toward satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C","page_number":211,"box":{"x":116,"y":149,"width":752,"height":12}},{"id":"40671bc3-7a00-444b-8a44-9371c9209293","block_type":"box","text":"Shares of Summit are subject to a distribution fee at an annual rate of 0.75% of average daily net","page_number":211,"box":{"x":116,"y":165,"width":726,"height":12}},{"id":"5f2ad5d4-aa11-48da-8192-804bae7d84e8","block_type":"box","text":"assets of such Investor C Shares. Exchanges of Investor C Shares of a money market fund other than","page_number":211,"box":{"x":116,"y":180,"width":765,"height":12}},{"id":"f553711b-fcd3-4bd8-8d02-97e88ebcbb90","block_type":"box","text":"Summit for Investor C Shares of a Fund will be exercised at NAV. However, a CDSC may be charged","page_number":211,"box":{"x":116,"y":196,"width":759,"height":12}},{"id":"7b22c252-236d-46b9-8480-8b677ac7fe66","block_type":"box","text":"in connection with any subsequent redemption of the Investor C Shares of the Fund received in the","page_number":211,"box":{"x":117,"y":211,"width":740,"height":12}},{"id":"d2c24ee0-627d-4c38-92e5-0556c8246546","block_type":"box","text":"exchange. In determining the holding period for calculating the CDSC payable on redemption of","page_number":211,"box":{"x":116,"y":227,"width":715,"height":12}},{"id":"feefe473-c224-4f74-a092-cac5263a2688","block_type":"box","text":"Investor C Shares of the Fund received in the exchange, the holding period of the money market fund","page_number":211,"box":{"x":117,"y":242,"width":759,"height":12}},{"id":"de426a22-8f9c-4758-97f9-a4b55d8e5299","block_type":"box","text":"Investor C Shares originally held will be added to the holding period of the Investor C Shares acquired","page_number":211,"box":{"x":117,"y":258,"width":761,"height":12}},{"id":"9d13232b-f368-44e9-86ad-5880d637a614","block_type":"box","text":"through exchange.","page_number":211,"box":{"x":116,"y":273,"width":144,"height":12}},{"id":"e17d22ab-9fa5-4edb-a554-36cd0cd24f7f","block_type":"box","text":"Exchanges by Participants in Certain Programs.","page_number":211,"box":{"x":116,"y":304,"width":362,"height":12}},{"id":"91b9aa84-7094-45c9-b8b5-abf6ed46e028","block_type":"box","text":"The exchange privilege may be modified with respect","page_number":211,"box":{"x":478,"y":304,"width":401,"height":12}},{"id":"998a9f3f-6452-4c73-9a77-d32e8c9c1433","block_type":"box","text":"to certain participants in mutual fund advisory programs and other fee-based programs sponsored by","page_number":211,"box":{"x":116,"y":320,"width":755,"height":12}},{"id":"11c2644d-43f7-4726-9658-6c6ca17c989b","block_type":"box","text":"the Manager, an affiliate of the Manager, or selected securities dealers or other financial intermediaries","page_number":211,"box":{"x":116,"y":335,"width":770,"height":12}},{"id":"3f7e6f8b-bb05-4224-b1ba-4955fb9f5268","block_type":"box","text":"that have an agreement with the Distributor. See “Fee-Based Programs” below.","page_number":211,"box":{"x":116,"y":351,"width":595,"height":12}},{"id":"5510c8b9-0553-413a-941e-65209b5e57cd","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":211,"box":{"x":116,"y":382,"width":269,"height":12}},{"id":"b3d90fd8-0954-4279-9365-47ce7e5ce65b","block_type":"box","text":"To exercise the exchange privilege, you should contact your","page_number":211,"box":{"x":385,"y":382,"width":452,"height":12}},{"id":"2535996f-e334-413a-94d6-a6dbd25f303a","block_type":"box","text":"financial adviser or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold","page_number":211,"box":{"x":116,"y":397,"width":758,"height":12}},{"id":"1c2c9cbb-42c6-4ea6-a407-7d3abe42c488","block_type":"box","text":"share certificates, you may exercise the exchange privilege by wire through your securities dealer or","page_number":211,"box":{"x":116,"y":413,"width":749,"height":12}},{"id":"92fd9d93-25a2-4881-8948-d413d854cc1b","block_type":"box","text":"other financial intermediary. Each Fund reserves the right to require a properly completed exchange","page_number":211,"box":{"x":116,"y":428,"width":747,"height":12}},{"id":"6e77c538-ec33-4d2e-939c-55abb988e82c","block_type":"box","text":"application.","page_number":211,"box":{"x":116,"y":444,"width":89,"height":12}},{"id":"ed93a6d1-ac2c-45e6-877a-227debf4196f","block_type":"box","text":"A shareholder who wishes to make an exchange may do so by sending a written request to the Fund c/","page_number":211,"box":{"x":116,"y":475,"width":767,"height":12}},{"id":"8a8b161f-0870-4def-a1f9-1036c97f4628","block_type":"box","text":"o the Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429.","page_number":211,"box":{"x":116,"y":490,"width":771,"height":12}},{"id":"3b394a0e-d212-4c3e-ba86-dd8cd9cc251e","block_type":"box","text":"Shareholders are automatically provided with telephone exchange privileges when opening an","page_number":211,"box":{"x":116,"y":506,"width":705,"height":12}},{"id":"d56c124c-151c-46a8-92cc-474f02e27813","block_type":"box","text":"account, unless they indicate on the Application that they do not wish to use this privilege. To add this","page_number":211,"box":{"x":116,"y":521,"width":759,"height":12}},{"id":"a9015e0e-5def-4b0c-a5e5-55ed76bcd39f","block_type":"box","text":"feature to an existing account that previously did not provide this option, a Telephone Exchange","page_number":211,"box":{"x":116,"y":537,"width":716,"height":12}},{"id":"06c4749f-162e-4506-8c40-dc6f653cb427","block_type":"box","text":"Authorization Form must be filed with the Transfer Agent. This form is available from the Transfer","page_number":211,"box":{"x":116,"y":552,"width":727,"height":12}},{"id":"c7bac58b-a7b5-4daa-bca4-da265d1acdfa","block_type":"box","text":"Agent. Once this election has been made, the shareholder may simply contact the Fund by telephone","page_number":211,"box":{"x":116,"y":568,"width":759,"height":12}},{"id":"5dc87d03-4ac0-4eec-be6c-c97d949b9708","block_type":"box","text":"at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":211,"box":{"x":116,"y":583,"width":763,"height":12}},{"id":"776f8019-cdf5-4ffa-b0db-efd4c4a56cc9","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange","page_number":211,"box":{"x":116,"y":599,"width":736,"height":12}},{"id":"063257d4-8396-46c6-a021-97a83d18b351","block_type":"box","text":"requests to the Transfer Agent in writing.","page_number":211,"box":{"x":117,"y":614,"width":307,"height":12}},{"id":"b5bd58dc-0733-4ef1-aac0-1b3f60587176","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares","page_number":211,"box":{"x":117,"y":645,"width":760,"height":12}},{"id":"2637594f-2eed-48dd-862f-7049d02ebe82","block_type":"box","text":"are being acquired, a new account will be established with the same registration, dividend and capital","page_number":211,"box":{"x":116,"y":661,"width":751,"height":12}},{"id":"cd9aa68c-1249-4de4-8bed-16d1f5948afb","block_type":"box","text":"gain options and broker of record as the account from which shares are exchanged, unless otherwise","page_number":211,"box":{"x":116,"y":676,"width":752,"height":12}},{"id":"5fd0d089-e56f-43d6-b1c7-f326eac046aa","block_type":"box","text":"specified in writing by the shareholder with all signatures guaranteed by an eligible guarantor institution","page_number":211,"box":{"x":116,"y":692,"width":764,"height":12}},{"id":"e308d8b9-84d3-4635-8e85-d0e1375b54a3","block_type":"box","text":"as defined below. In order to participate in the Automatic Investment Program or establish a","page_number":211,"box":{"x":116,"y":707,"width":680,"height":12}},{"id":"809a9b05-cd58-4eb9-abc9-0c23d6636ebb","block_type":"box","text":"Systematic Withdrawal Plan for the new account, however, an exchanging shareholder must file a","page_number":211,"box":{"x":116,"y":723,"width":726,"height":12}},{"id":"7a4e00d1-67f0-4931-95de-cb2b3fbcb729","block_type":"box","text":"specific written request.","page_number":211,"box":{"x":116,"y":738,"width":174,"height":12}},{"id":"019f9c1f-51f4-496e-a0c1-9ea75e415f33","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment","page_number":211,"box":{"x":116,"y":769,"width":686,"height":12}},{"id":"2acf0eae-4047-4833-8e59-12d05f1cda10","block_type":"box","text":"requirement, and must be legally available for sale in the state of the investor’s residence. For U.S.","page_number":211,"box":{"x":117,"y":785,"width":732,"height":12}},{"id":"872da64a-91ee-4702-8cd1-fef5bcffd4ee","block_type":"box","text":"federal income tax purposes, a share exchange is a taxable event and, accordingly, a capital gain or","page_number":211,"box":{"x":116,"y":800,"width":746,"height":12}},{"id":"33bdadf0-020e-47ae-8a28-6bb50d5b0f94","block_type":"box","text":"loss may be realized. Before making an exchange request, shareholders should consult a tax or other","page_number":211,"box":{"x":117,"y":816,"width":755,"height":12}},{"id":"66160196-cc52-4907-9c34-5996ebeb83b3","block_type":"box","text":"financial adviser and should consider the investment objective, policies and restrictions of the","page_number":211,"box":{"x":116,"y":831,"width":697,"height":12}},{"id":"55079319-8691-4e24-904b-9f1d3eb817e3","block_type":"box","text":"investment portfolio into which the shareholder is making an exchange. Brokers may charge a fee for","page_number":211,"box":{"x":117,"y":847,"width":754,"height":12}},{"id":"afca9c21-3978-4538-904c-15be1047007d","block_type":"box","text":"handling exchanges.","page_number":211,"box":{"x":117,"y":862,"width":158,"height":12}},{"id":"c288263d-fc17-4db7-a94f-6e2cb4bca737","block_type":"box","text":"II-152","page_number":211,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"598076ca-b157-4ffe-aded-79654ef85270","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":211,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"be1960a0-f8fb-4ff3-bc7c-73828dea989c","block_type":"box","text":"The Funds reserve the right to suspend, modify or terminate the exchange privilege at any time. Notice","page_number":212,"box":{"x":116,"y":87,"width":769,"height":12}},{"id":"af28db50-09aa-4332-8960-31ef812781e4","block_type":"box","text":"will be given to shareholders of any material modification or termination except where notice is not","page_number":212,"box":{"x":116,"y":102,"width":733,"height":13}},{"id":"194f6c38-a79e-4767-b227-d63dceb297ed","block_type":"box","text":"required. The Funds reserve the right to reject any telephone exchange request. Telephone exchanges","page_number":212,"box":{"x":117,"y":118,"width":770,"height":12}},{"id":"a9ff45f5-8a34-4f97-9a38-f03ae9c632d9","block_type":"box","text":"may be subject to limitations as to amount or frequency, and to other restrictions that may be","page_number":212,"box":{"x":117,"y":134,"width":693,"height":12}},{"id":"e6208cc0-0293-4f03-ac99-acaf0ac43586","block_type":"box","text":"established from time to time to ensure that exchanges do not operate to the disadvantage of any","page_number":212,"box":{"x":116,"y":149,"width":729,"height":12}},{"id":"3eba87fb-1d6b-499e-9c90-d6bfdea05520","block_type":"box","text":"portfolio or its shareholders.","page_number":212,"box":{"x":117,"y":165,"width":211,"height":11}},{"id":"ac6b090c-259f-485d-8476-bb8ccbd52724","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":212,"box":{"x":116,"y":194,"width":770,"height":12}},{"id":"0d133f81-f596-4211-a0a4-0af434c163dc","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for","page_number":212,"box":{"x":116,"y":210,"width":766,"height":12}},{"id":"c662a0a2-c6e9-48cb-adfa-0a369bb63197","block_type":"box","text":"any loss, liability, cost or expense for acting upon telephone instructions reasonably believed to be","page_number":212,"box":{"x":116,"y":225,"width":735,"height":12}},{"id":"b0e49298-1751-4927-b29d-1f20d24e27a6","block_type":"box","text":"genuine in accordance with such procedures. By use of the exchange privilege, the investor authorizes","page_number":212,"box":{"x":116,"y":241,"width":769,"height":12}},{"id":"0b04e840-1f05-44e1-b778-7dc96de363b7","block_type":"box","text":"the Fund’s Transfer Agent to act on telephonic or written exchange instructions from any person","page_number":212,"box":{"x":116,"y":256,"width":718,"height":12}},{"id":"b037f21d-a997-48cb-a614-b12e951fc26d","block_type":"box","text":"representing himself to be the investor and believed by the Fund’s Transfer Agent to be genuine. The","page_number":212,"box":{"x":117,"y":272,"width":756,"height":12}},{"id":"088ffa2c-4d1f-4c80-bfdb-06792b921602","block_type":"box","text":"records of the Fund’s Transfer Agent pertaining to such instructions are binding. The exchange","page_number":212,"box":{"x":117,"y":287,"width":709,"height":12}},{"id":"589139c8-29c4-4136-aecf-7ec91cd870d0","block_type":"box","text":"privilege may be modified or terminated at any time upon 60 days’ notice to affected shareholders. The","page_number":212,"box":{"x":117,"y":303,"width":768,"height":12}},{"id":"1d8ea1c6-c089-4e7e-86a9-1fb83e3741ce","block_type":"box","text":"exchange privilege is only available in states where the exchange may legally be made.","page_number":212,"box":{"x":116,"y":318,"width":655,"height":12}},{"id":"bd014404-06c4-41b0-957f-c2035cf5b9ed","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange","page_number":212,"box":{"x":117,"y":348,"width":723,"height":12}},{"id":"984314e9-8d2b-4224-85f4-48ceffe2e18d","block_type":"box","text":"privilege. Certain Funds may suspend the continuous offering of their shares to the general public at","page_number":212,"box":{"x":117,"y":363,"width":747,"height":12}},{"id":"968d82bb-bedf-4bab-a0b4-c9646e471a91","block_type":"box","text":"any time and may resume such offering from time to time. The exchange privilege is available only to","page_number":212,"box":{"x":116,"y":379,"width":755,"height":12}},{"id":"26ac4ee0-5cdf-458d-ac5e-4dbdbd57b2ce","block_type":"box","text":"U.S. shareholders in states where the exchange legally may be made. The exchange privilege may be","page_number":212,"box":{"x":117,"y":394,"width":764,"height":12}},{"id":"25f38d00-e366-4832-aa7f-ee7139a2bf92","block_type":"box","text":"applicable to other new mutual funds whose shares may be distributed by the Distributor.","page_number":212,"box":{"x":116,"y":410,"width":666,"height":12}},{"id":"bf9a9ec5-d246-4e06-95f8-6f837766597c","block_type":"box","text":"Participation in Fee-Based Programs","page_number":212,"box":{"x":117,"y":439,"width":298,"height":12}},{"id":"9c5830bc-1630-4398-aca2-dfd925b9e145","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or","page_number":212,"box":{"x":117,"y":462,"width":747,"height":12}},{"id":"6473244a-a526-4eff-8c0f-0fded676cc5f","block_type":"box","text":"selected securities dealers or other financial intermediaries that have agreements with the Distributor","page_number":212,"box":{"x":116,"y":477,"width":754,"height":12}},{"id":"d15734b7-c32c-4db4-a0ab-10c4d02a1d09","block_type":"box","text":"or in certain fee-based programs in which BlackRock participates, you may be able to buy Institutional","page_number":212,"box":{"x":116,"y":493,"width":761,"height":12}},{"id":"1f1e9b77-d17b-4685-9fcc-775121c3fa00","block_type":"box","text":"Shares, including by exchanges from other share classes. Sales charges on the shares being","page_number":212,"box":{"x":116,"y":508,"width":700,"height":12}},{"id":"2f3104e9-99f3-4107-ba60-bb7380d28784","block_type":"box","text":"exchanged may be reduced or waived under certain circumstances. You generally cannot transfer","page_number":212,"box":{"x":116,"y":524,"width":733,"height":12}},{"id":"aee07efd-9219-44f8-b06a-325f1d378f0e","block_type":"box","text":"shares held through a fee-based program into another account. Instead, if you choose to leave the","page_number":212,"box":{"x":116,"y":539,"width":736,"height":12}},{"id":"322819b9-89a8-4359-b4b4-7aae0c77069d","block_type":"box","text":"fee-based program, you may have to redeem your shares held through the program and purchase","page_number":212,"box":{"x":116,"y":555,"width":735,"height":12}},{"id":"04b1340f-8737-47c2-916d-bb7a09dac493","block_type":"box","text":"shares of another class, which may be subject to distribution and service fees. This may be a taxable","page_number":212,"box":{"x":116,"y":570,"width":755,"height":12}},{"id":"d0b247e5-d29a-4772-8f57-d4619300dea8","block_type":"box","text":"event and you may pay any applicable sales charges or redemption fee. Please speak to your financial","page_number":212,"box":{"x":116,"y":586,"width":769,"height":12}},{"id":"7cc76538-de05-4336-9f58-516e463bcee7","block_type":"box","text":"intermediary for information about specific policies and procedures applicable to your account.","page_number":212,"box":{"x":117,"y":601,"width":703,"height":13}},{"id":"1948d6f5-c09c-44fe-b73c-7f88edde9ac5","block_type":"box","text":"Generally, upon termination of a fee-based program, the shares may be liquidated or the shares can","page_number":212,"box":{"x":117,"y":631,"width":749,"height":12}},{"id":"56c04d77-b73e-4f29-a994-2260f7289673","block_type":"box","text":"be held in an account. In certain circumstances, when a shareholder chooses to continue to hold the","page_number":212,"box":{"x":117,"y":647,"width":749,"height":11}},{"id":"cce07510-acb4-45f4-b2e2-bd4f0a5d9d35","block_type":"box","text":"shares, whatever share class was held in the program can be held after termination. Shares that have","page_number":212,"box":{"x":116,"y":662,"width":756,"height":12}},{"id":"c38fb846-d659-44e5-b5a1-060a3125397a","block_type":"box","text":"been held for less than specified periods within the program may be subject to a fee upon redemption.","page_number":212,"box":{"x":117,"y":677,"width":756,"height":13}},{"id":"30444b3d-c99b-4ff2-bff2-3e07cbeacb21","block_type":"box","text":"Shareholders that held Investor A or Institutional Shares in the program may be eligible to purchase","page_number":212,"box":{"x":116,"y":693,"width":739,"height":12}},{"id":"b50be2e4-8133-4415-bbd1-899df1a2e47f","block_type":"box","text":"additional shares of the respective share class of a Fund, but may be subject to upfront sales charges","page_number":212,"box":{"x":116,"y":709,"width":755,"height":12}},{"id":"33e8fe9e-7f37-422f-a867-0533f99150da","block_type":"box","text":"with respect to Investor A Shares. Additional purchases of Institutional Shares are permitted only if you","page_number":212,"box":{"x":116,"y":724,"width":762,"height":12}},{"id":"cd0c1a1f-48a3-4cd2-a928-085434f8cb9c","block_type":"box","text":"have an existing position at the time of purchase or are otherwise eligible to purchase Institutional","page_number":212,"box":{"x":117,"y":740,"width":723,"height":12}},{"id":"8410c100-0e63-4be6-851a-4f1fa7ff58d3","block_type":"box","text":"Shares. Please speak to your financial intermediary for more information.","page_number":212,"box":{"x":116,"y":755,"width":542,"height":12}},{"id":"111a30f8-ff06-4f5b-a12c-f185d3d69c7e","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to","page_number":212,"box":{"x":117,"y":785,"width":755,"height":12}},{"id":"fa7af795-dbba-4bcb-b0c4-fb60785bd26a","block_type":"box","text":"leaving a fee-based program or upon termination of the fee-based program) or otherwise in","page_number":212,"box":{"x":117,"y":800,"width":675,"height":12}},{"id":"40109443-f98b-47b2-879b-a5abf69cdc30","block_type":"box","text":"accordance with the financial intermediary’s policies and procedures, exchange the share class held in","page_number":212,"box":{"x":116,"y":816,"width":761,"height":12}},{"id":"90e6bdae-324b-4614-8e71-7f9a17bbdc7f","block_type":"box","text":"the program for another share class of the same fund, provided that the exchanged shares are not","page_number":212,"box":{"x":116,"y":831,"width":736,"height":12}},{"id":"3fa21fe3-3cfb-4b16-9b9e-4e4ef8b3eabd","block_type":"box","text":"subject to a sales charge and the shareholder meets the eligibility requirements of the new share class.","page_number":212,"box":{"x":116,"y":847,"width":772,"height":12}},{"id":"507c1161-890e-43ea-b089-edb2a650e785","block_type":"box","text":"Please speak to your financial intermediary for information about specific policies and procedures","page_number":212,"box":{"x":117,"y":862,"width":726,"height":12}},{"id":"7e1a18da-5f8f-4e96-a01d-64e87cca0330","block_type":"box","text":"applicable to your account.","page_number":212,"box":{"x":116,"y":878,"width":205,"height":12}},{"id":"161dc6b9-1c03-4ad6-bc9c-46fbdcdaffe9","block_type":"box","text":"II-153","page_number":212,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"92c3fb5f-b218-4ec1-8391-afcc8440c886","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":212,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"73b038b1-1691-47f8-88e4-b0fa1b0010f2","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions","page_number":213,"box":{"x":117,"y":87,"width":757,"height":12}},{"id":"2d9ee534-aa1b-466b-bf51-4f4aa96bbc82","block_type":"box","text":"are included in the client agreement for each fee-based program and are available from your financial","page_number":213,"box":{"x":116,"y":102,"width":759,"height":13}},{"id":"42bddb22-3ae6-4822-8020-576f9cfcc765","block_type":"box","text":"professional, selected securities dealer or other financial intermediary. Please speak to your financial","page_number":213,"box":{"x":117,"y":118,"width":753,"height":12}},{"id":"8d57d4f1-e68d-4996-bfe3-da9871c5a73b","block_type":"box","text":"intermediary for more information.","page_number":213,"box":{"x":117,"y":134,"width":256,"height":12}},{"id":"27b4efa4-4d7a-4a59-a331-90e956d61da9","block_type":"box","text":"Retirement and Education Savings Plans","page_number":213,"box":{"x":117,"y":165,"width":331,"height":12}},{"id":"db0d5b7c-8af3-4bc1-978c-3252c27621e6","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from","page_number":213,"box":{"x":117,"y":188,"width":739,"height":12}},{"id":"8df72fdc-a346-4543-a87d-c96450066a17","block_type":"box","text":"your financial intermediary. Under these plans, investments may be made in a Fund (other than a","page_number":213,"box":{"x":116,"y":203,"width":728,"height":12}},{"id":"7c645147-42dc-41f3-a5e5-cc67c438bb8e","block_type":"box","text":"Municipal Fund) and certain of the other mutual funds sponsored by the Manager or its affiliates as well","page_number":213,"box":{"x":117,"y":219,"width":771,"height":12}},{"id":"64dd3ca2-1899-47a4-be2b-1f7b29ab9f30","block_type":"box","text":"as in other securities. There may be fees associated with investing through these plans. Information","page_number":213,"box":{"x":116,"y":234,"width":745,"height":12}},{"id":"faeb40e3-b3d2-42f9-be2d-6170b4f43fd7","block_type":"box","text":"with respect to these plans is available on request from your financial intermediary.","page_number":213,"box":{"x":116,"y":250,"width":620,"height":12}},{"id":"7e03aae2-26f2-4100-a4e5-5802b9408f09","block_type":"box","text":"Dividends received in each of the plans referred to above are exempt from U.S. federal taxation until","page_number":213,"box":{"x":117,"y":281,"width":749,"height":12}},{"id":"37bb65d2-c682-4984-847c-a7cad7de28a5","block_type":"box","text":"distributed from the plans and, in the case of Roth IRAs and education savings plans, may be exempt","page_number":213,"box":{"x":116,"y":296,"width":759,"height":12}},{"id":"a1ab0d43-2226-45c9-abec-c0a83c4fe968","block_type":"box","text":"from taxation when distributed as well. Investors considering participation in any retirement or","page_number":213,"box":{"x":116,"y":312,"width":699,"height":12}},{"id":"83357638-d083-4628-b156-3396b300a080","block_type":"box","text":"education savings plan should review specific tax laws relating to the plan and should consult their","page_number":213,"box":{"x":116,"y":327,"width":735,"height":12}},{"id":"2f021396-801a-452d-be00-ca820c3af041","block_type":"box","text":"attorneys or tax advisors with respect to the establishment and maintenance of any such plan.","page_number":213,"box":{"x":116,"y":343,"width":704,"height":12}},{"id":"49c1d50f-0150-4c82-aaef-6c836545a041","block_type":"box","text":"Automatic Investment Plans","page_number":213,"box":{"x":116,"y":374,"width":230,"height":9}},{"id":"6b2fa3f8-cdfb-431c-92bb-007fb5ea4806","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the","page_number":213,"box":{"x":117,"y":397,"width":734,"height":10}},{"id":"b16597e4-c726-4c66-9aef-92b00c1a3d35","block_type":"box","text":"Compass Capital Group of Funds at the time of its combination with The PNC","page_number":213,"box":{"x":117,"y":413,"width":575,"height":12}},{"id":"9c72c4e2-4267-40b8-911e-90c4a709bb17","block_type":"box","text":"®","page_number":213,"box":{"x":693,"y":412,"width":9,"height":7}},{"id":"893df4a4-2dfd-453c-acc7-cee4bc81522e","block_type":"box","text":"Fund in 1996 may","page_number":213,"box":{"x":702,"y":413,"width":144,"height":12}},{"id":"e6c5c1b9-0e3c-4277-9a0b-27455fdef2cc","block_type":"box","text":"arrange for periodic investments in that Fund through automatic deductions from a checking or savings","page_number":213,"box":{"x":116,"y":428,"width":769,"height":12}},{"id":"48f4e3c7-0bf7-4a08-9030-880b3c3f598a","block_type":"box","text":"account. The minimum pre-authorized investment amount is $50. If you buy shares of a Fund through","page_number":213,"box":{"x":116,"y":443,"width":760,"height":13}},{"id":"c35d49ff-225f-4fd1-ae3b-a2ecffa987ad","block_type":"box","text":"certain accounts, no minimum charge to your bank account is required. Contact your financial adviser","page_number":213,"box":{"x":116,"y":459,"width":759,"height":12}},{"id":"6802c237-0045-4144-befd-ccde697a146b","block_type":"box","text":"or other financial intermediary for more information.","page_number":213,"box":{"x":116,"y":475,"width":386,"height":12}},{"id":"a99850f2-7201-423d-9fb3-91c4cca38cc8","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":213,"box":{"x":116,"y":506,"width":318,"height":9}},{"id":"cd053d1c-2f25-4cfe-aa5e-8e1b7e4a7e61","block_type":"box","text":"Each Fund will distribute substantially all of its net investment income and net realized capital gains, if","page_number":213,"box":{"x":117,"y":529,"width":758,"height":12}},{"id":"351d5991-f18d-4363-897c-772c31b483aa","block_type":"box","text":"any, to shareholders. All distributions are automatically reinvested at NAV in the form of additional full","page_number":213,"box":{"x":116,"y":544,"width":758,"height":12}},{"id":"55f0f04e-4f54-4454-a7f3-bf8beadda000","block_type":"box","text":"and fractional shares of the same class of shares of the relevant Fund unless a shareholder elects","page_number":213,"box":{"x":116,"y":560,"width":734,"height":9}},{"id":"477ed87a-0fab-41a2-b816-0bd82173c865","block_type":"box","text":"otherwise or as otherwise set forth in a Fund’s prospectus. Such election, or any revocation thereof,","page_number":213,"box":{"x":116,"y":575,"width":746,"height":12}},{"id":"7d91fe8b-13d4-4d44-a988-89ec0cfba95a","block_type":"box","text":"must be made in writing to the Transfer Agent, and will become effective with respect to dividends paid","page_number":213,"box":{"x":117,"y":591,"width":767,"height":12}},{"id":"e9d078bc-bccf-448e-b44b-0ce1e181e565","block_type":"box","text":"after its receipt by the Transfer Agent.","page_number":213,"box":{"x":116,"y":606,"width":286,"height":12}},{"id":"4aca7fc2-fbe9-4862-a4ed-9ba2fd9840d0","block_type":"box","text":"Systematic Withdrawal Plans","page_number":213,"box":{"x":116,"y":637,"width":237,"height":12}},{"id":"09dc65d8-8eca-4fde-852f-36f07b292bbd","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan","page_number":213,"box":{"x":116,"y":661,"width":747,"height":12}},{"id":"f74cfd82-afff-49b3-ad8c-387e4b27c923","block_type":"box","text":"(“SWP”). Upon commencement of the SWP, the account must have a current value of $10,000 or more","page_number":213,"box":{"x":117,"y":675,"width":765,"height":13}},{"id":"6264d4d9-bd80-4ed7-acbe-4deb1815dd8c","block_type":"box","text":"in a Fund. Shareholders may elect to receive automatic cash payments of $50 or more at any interval.","page_number":213,"box":{"x":117,"y":691,"width":755,"height":13}},{"id":"089c6e7a-a8c5-4c4b-96ff-98c670e7d8d5","block_type":"box","text":"You may choose any day for the withdrawal. If no day is specified, the withdrawals will be processed","page_number":213,"box":{"x":116,"y":707,"width":745,"height":12}},{"id":"ef43d297-d09c-480b-9958-81ee38afc228","block_type":"box","text":"on the 25th day of the month or, if such day is not a business day, on the prior business day and are","page_number":213,"box":{"x":116,"y":723,"width":744,"height":12}},{"id":"b050e9b4-bc76-4c58-88ac-31904dc025ec","block_type":"box","text":"paid promptly thereafter. An investor may utilize the SWP by completing the Systematic Withdrawal","page_number":213,"box":{"x":117,"y":738,"width":736,"height":12}},{"id":"044ba57b-af4c-4524-869e-7fc192b2b9b0","block_type":"box","text":"Plan Application Form which may be obtained by visiting our website at www.blackrock.com.","page_number":213,"box":{"x":117,"y":754,"width":685,"height":12}},{"id":"9d27169f-8b5e-4dc6-89dd-453ad8567b55","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the","page_number":213,"box":{"x":116,"y":785,"width":757,"height":12}},{"id":"fb34ff75-1e1c-4882-bdfd-607093550940","block_type":"box","text":"account will be depleted. To participate in the SWP, shareholders must have their dividends","page_number":213,"box":{"x":116,"y":800,"width":681,"height":12}},{"id":"9e021f04-2bbd-482f-a2aa-141ca173669f","block_type":"box","text":"automatically reinvested. Shareholders may change or cancel the SWP at any time, upon written","page_number":213,"box":{"x":116,"y":816,"width":717,"height":12}},{"id":"527dd6d4-ee69-4e6b-b39d-cfe17e6318a4","block_type":"box","text":"notice to the Fund, or by calling the Fund at (800) 441-7762. Purchases of additional Investor A or","page_number":213,"box":{"x":117,"y":831,"width":731,"height":12}},{"id":"ddd09063-18ac-4f8e-b911-33d92397095d","block_type":"box","text":"Investor P Shares of the Fund concurrently with withdrawals may be disadvantageous to investors","page_number":213,"box":{"x":117,"y":847,"width":733,"height":12}},{"id":"e7c3cf53-6bf8-4aad-919f-87a3ba7ae958","block_type":"box","text":"because of the sales charges involved and, therefore, are discouraged. No CDSC will be assessed on","page_number":213,"box":{"x":117,"y":862,"width":762,"height":12}},{"id":"f8836e92-f2a0-4c33-bc01-fafe673f4164","block_type":"box","text":"redemptions of Investor C Shares made through the SWP that do not exceed 12% of the original","page_number":213,"box":{"x":117,"y":878,"width":721,"height":12}},{"id":"3538cfc5-f27b-45df-bccb-089e9a898697","block_type":"box","text":"II-154","page_number":213,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"ea6ac275-ab6a-4885-b1c0-4a3ca3bc1334","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":213,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8728484c-86cc-4c8e-9abc-40d75cfaac0a","block_type":"box","text":"investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP","page_number":214,"box":{"x":117,"y":87,"width":680,"height":12}},{"id":"6bc03d6b-e8b4-41e5-8086-c6afbfc0d044","block_type":"box","text":"redemptions of Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly),","page_number":214,"box":{"x":117,"y":102,"width":759,"height":13}},{"id":"9677bbc3-34fb-49d2-a2ba-7afadb9f2615","block_type":"box","text":"3% (quarterly) and 6% (semi-annually), respectively, of an account’s NAV on the redemption date.","page_number":214,"box":{"x":116,"y":118,"width":734,"height":12}},{"id":"26b01602-ca3e-43db-997c-7e45a175aeef","block_type":"box","text":"SWP redemptions of Investor C Shares in excess of this limit are still subject to the applicable CDSC.","page_number":214,"box":{"x":116,"y":134,"width":758,"height":12}},{"id":"dcdb0e26-7ec1-4de5-8041-08008cb9f104","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above","page_number":214,"box":{"x":117,"y":164,"width":754,"height":12}},{"id":"867811ee-63b0-4d44-95bd-dd72639e19a1","block_type":"box","text":"(see “How to Buy, Sell, Exchange and Transfer Shares” or “How to Buy, Sell and Exchange Shares,”","page_number":214,"box":{"x":117,"y":180,"width":752,"height":12}},{"id":"6589d3ab-31e6-46be-a20e-588cc7504923","block_type":"box","text":"as applicable, in the Fund’s Prospectus) and the SWP at the same time.","page_number":214,"box":{"x":116,"y":195,"width":540,"height":12}},{"id":"67071500-0ea6-4cd5-bfad-4048735195b3","block_type":"box","text":"Dividend Allocation Plan","page_number":214,"box":{"x":117,"y":226,"width":201,"height":9}},{"id":"428b43f1-053f-44b5-8f5a-8bd42c494aaa","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and","page_number":214,"box":{"x":116,"y":252,"width":771,"height":11}},{"id":"301abc12-d82c-4d7e-8d73-2fa837714f4b","block_type":"box","text":"any other distributions from any Eligible Fund (which means funds so designated by the Distributor","page_number":214,"box":{"x":116,"y":267,"width":737,"height":12}},{"id":"7f6179ea-6bcf-4272-b54e-082f061361c3","block_type":"box","text":"from time to time) automatically invested at NAV in one other such Eligible Fund designated by the","page_number":214,"box":{"x":116,"y":282,"width":737,"height":13}},{"id":"fe29af23-10ff-45f2-9db0-9d3501bb8457","block_type":"box","text":"shareholder, provided the account into which the dividends and distributions are directed is initially","page_number":214,"box":{"x":116,"y":298,"width":735,"height":12}},{"id":"2013568a-6997-4aee-a809-992f99625fb5","block_type":"box","text":"funded with the requisite minimum amount.","page_number":214,"box":{"x":116,"y":313,"width":325,"height":12}},{"id":"a3049e05-5882-4343-9f73-e11e09a905cb","block_type":"box","text":"P","page_number":214,"box":{"x":428,"y":359,"width":9,"height":10}},{"id":"08cb6c80-58f6-4542-a8c7-9d4b337c2f1b","block_type":"box","text":"RICING","page_number":214,"box":{"x":439,"y":362,"width":45,"height":7}},{"id":"0eeea8af-c5c8-449d-9d1a-6d3807164662","block_type":"box","text":"OF","page_number":214,"box":{"x":491,"y":362,"width":17,"height":7}},{"id":"ce6a476c-83c4-42d0-a4df-53a97795cda2","block_type":"box","text":"S","page_number":214,"box":{"x":509,"y":359,"width":15,"height":10}},{"id":"9de29d62-6c6c-4683-aefc-32231a1b6211","block_type":"box","text":"HARES","page_number":214,"box":{"x":526,"y":362,"width":46,"height":7}},{"id":"553582e7-7635-4462-be0a-bb9fc460b45d","block_type":"box","text":"Determination of Net Asset Value","page_number":214,"box":{"x":117,"y":390,"width":269,"height":10}},{"id":"eacc7cf4-7bc0-4fc9-8897-f3e807c60526","block_type":"box","text":"Valuation of Shares.","page_number":214,"box":{"x":116,"y":413,"width":160,"height":10}},{"id":"7c9c4128-03de-4d0c-9627-87f93fda831a","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the","page_number":214,"box":{"x":278,"y":413,"width":602,"height":12}},{"id":"addb9991-e3b8-44c0-95a1-2dde32fad97c","block_type":"box","text":"close of regular trading hours on the NYSE (currently 4:00 p.m. Eastern Time) on each business day","page_number":214,"box":{"x":116,"y":429,"width":752,"height":12}},{"id":"7a402ea6-7449-450a-8498-7fe2aebc6b74","block_type":"box","text":"the NYSE is open. Valuation of assets held by a Fund is as follows:","page_number":214,"box":{"x":116,"y":444,"width":505,"height":12}},{"id":"e5fff6a8-9056-496c-8898-fba3fffa69f8","block_type":"box","text":"Equity Investments.","page_number":214,"box":{"x":117,"y":475,"width":157,"height":12}},{"id":"0dae0b0f-734a-4643-a8b1-fb66c9fc4fad","block_type":"box","text":"Equity securities traded on a recognized securities exchange (e.g., NYSE), on","page_number":214,"box":{"x":275,"y":475,"width":589,"height":12}},{"id":"21841b57-29b4-4f73-9c7c-d104ef7946cb","block_type":"box","text":"separate trading boards of a securities exchange or through a market system that provides","page_number":214,"box":{"x":116,"y":490,"width":679,"height":12}},{"id":"da814bf9-5208-45a5-a78c-c30b4e36f315","block_type":"box","text":"contemporaneous transaction pricing information (each, an “Exchange”) are valued using information","page_number":214,"box":{"x":116,"y":506,"width":756,"height":12}},{"id":"c5254693-f647-4713-94ac-947b9f21d6b9","block_type":"box","text":"obtained via independent pricing services, generally at the Exchange closing price or if an Exchange","page_number":214,"box":{"x":116,"y":521,"width":751,"height":12}},{"id":"d9a3b445-547e-434c-8dbb-f550a3c23348","block_type":"box","text":"closing price is not available, the last traded price on that Exchange prior to the time as of which the","page_number":214,"box":{"x":116,"y":537,"width":745,"height":12}},{"id":"9ad25020-8469-451b-97c4-8f5fb17d50d1","block_type":"box","text":"assets or liabilities are valued. However, under certain circumstances, other means of determining","page_number":214,"box":{"x":116,"y":552,"width":734,"height":12}},{"id":"d3172118-aa00-40b0-a0e6-fd17dccf3d0d","block_type":"box","text":"current market value may be used. If an equity security is traded on more than one Exchange, the","page_number":214,"box":{"x":116,"y":568,"width":732,"height":12}},{"id":"0706dbf7-ec48-443e-b170-1cfb8d69cce6","block_type":"box","text":"current market value of the security where it is primarily traded generally will be used. In the event that","page_number":214,"box":{"x":116,"y":583,"width":764,"height":12}},{"id":"3c4fd047-82e6-462b-a55e-e80b2e6bf0af","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","page_number":214,"box":{"x":116,"y":599,"width":766,"height":12}},{"id":"202a4113-2b16-49c5-92b6-11fdb99b4370","block_type":"box","text":"security, the last bid (long positions) or ask (short positions) price, if available, will be used as the value","page_number":214,"box":{"x":116,"y":614,"width":770,"height":12}},{"id":"756ed4da-24a7-4bd9-ad69-307dd0f842ae","block_type":"box","text":"of such security. If a Fund holds both long and short positions in the same security, the last bid price","page_number":214,"box":{"x":116,"y":630,"width":748,"height":12}},{"id":"dab07270-ca79-4bcd-9707-ddefa92cdabe","block_type":"box","text":"will be applied to securities held long and the last ask price will be applied to securities sold short. If no","page_number":214,"box":{"x":116,"y":645,"width":766,"height":12}},{"id":"c1aff809-8ec2-4ab3-8dd2-1440b52ba1fc","block_type":"box","text":"bid or ask price is available on a day on which a Fund values such security, the prior day’s price will be","page_number":214,"box":{"x":117,"y":661,"width":761,"height":12}},{"id":"8817a614-f37c-441a-953f-8a687e4c1cd3","block_type":"box","text":"used, unless BlackRock determines that such prior day’s price no longer reflects the fair value of the","page_number":214,"box":{"x":117,"y":676,"width":743,"height":12}},{"id":"a65bd0d7-bdf2-4e54-a93c-894fcf96a452","block_type":"box","text":"security, in which case such asset would be treated as a Fair Value Asset (as defined below).","page_number":214,"box":{"x":116,"y":692,"width":692,"height":12}},{"id":"b975b71f-c6e5-4ad8-b785-f37c048f1cad","block_type":"box","text":"Fixed-Income Investments.","page_number":214,"box":{"x":117,"y":723,"width":214,"height":9}},{"id":"2b1ea38c-2f11-4988-b6da-be2aaa635e79","block_type":"box","text":"Fixed-income securities are generally valued using bid prices provided by","page_number":214,"box":{"x":338,"y":723,"width":544,"height":12}},{"id":"c58f9cb8-f083-4660-b88b-092300dfe00e","block_type":"box","text":"dealers or prices (including evaluated prices) supplied by the Fund’s approved independent third-party","page_number":214,"box":{"x":116,"y":738,"width":759,"height":12}},{"id":"2c1c4cdd-af13-4302-90ed-b312200dd5a3","block_type":"box","text":"pricing services, each in accordance with the Valuation Procedures. The pricing services may use","page_number":214,"box":{"x":117,"y":754,"width":725,"height":12}},{"id":"f53725c6-7478-4f8e-9dd7-9bcd77eee8cc","block_type":"box","text":"valuation models that utilize certain inputs and assumptions to derive values, including transaction data","page_number":214,"box":{"x":116,"y":769,"width":765,"height":12}},{"id":"41251862-7264-48fc-990b-73d3d0a74eb2","block_type":"box","text":"(e.g., recent representative bids and offers), credit quality information, perceived market movements,","page_number":214,"box":{"x":117,"y":785,"width":746,"height":12}},{"id":"c64a193e-3343-4339-bc38-3d2026905e82","block_type":"box","text":"news, and other relevant information and by other methods, which may include consideration of: yields","page_number":214,"box":{"x":117,"y":800,"width":761,"height":12}},{"id":"bb35c720-77b3-464f-be45-35578907cbdf","block_type":"box","text":"or prices of securities of comparable quality, coupon, maturity and type; indications as to values from","page_number":214,"box":{"x":116,"y":816,"width":747,"height":12}},{"id":"6ada8593-6c69-4dd2-a5bf-c2a4b2cc9f56","block_type":"box","text":"dealers; general market conditions; and/or other factors and assumptions. Pricing services generally","page_number":214,"box":{"x":116,"y":831,"width":749,"height":12}},{"id":"9e8d18f1-70ee-4e70-9829-3be4c1b95777","block_type":"box","text":"value fixed-income securities assuming orderly transactions of an institutional round lot size, but the","page_number":214,"box":{"x":116,"y":847,"width":745,"height":12}},{"id":"816d2f4b-c513-4cd3-8d75-8a6f52017d86","block_type":"box","text":"Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain","page_number":214,"box":{"x":117,"y":862,"width":752,"height":12}},{"id":"6112e53c-a9fa-489e-a9e4-9cc97853136d","block_type":"box","text":"asset classes may trade at lower prices than institutional round lots, and the value ultimately realized","page_number":214,"box":{"x":116,"y":878,"width":753,"height":12}},{"id":"bb98e663-12b9-4798-b94e-3d38fae6e50d","block_type":"box","text":"II-155","page_number":214,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"4cbe7900-72f7-4c4b-83ba-adb0ba308967","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":214,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"7454e562-a690-4c2a-93ed-0cc3219a24fc","block_type":"box","text":"when the securities are sold could differ from the prices used by a Fund. The amortized cost method of","page_number":215,"box":{"x":116,"y":87,"width":769,"height":12}},{"id":"d44faef1-166f-4efb-9b5a-7f0f3afd9fe1","block_type":"box","text":"valuation may be used with respect to debt obligations with 60 days or less remaining to maturity","page_number":215,"box":{"x":116,"y":103,"width":723,"height":12}},{"id":"b4794c49-eed8-4160-b795-b105d2af39c2","block_type":"box","text":"unless such method does not represent fair value. Certain fixed-income investments, including asset","page_number":215,"box":{"x":117,"y":118,"width":750,"height":12}},{"id":"e40f39a3-6679-48c1-96a8-b8e50ade0a5e","block_type":"box","text":"backed and mortgage related securities, may be valued based on valuation models that consider the","page_number":215,"box":{"x":117,"y":134,"width":751,"height":12}},{"id":"02cd16bc-e03f-41c6-9b26-bf5bd7a8f7a8","block_type":"box","text":"estimated cash flows of each tranche of the issuer, establish a benchmark yield and develop an","page_number":215,"box":{"x":116,"y":149,"width":715,"height":12}},{"id":"784e1dd4-01b2-4d61-a380-41fad1673d23","block_type":"box","text":"estimated tranche specific spread to the benchmark yield based on the unique attributes of the","page_number":215,"box":{"x":116,"y":165,"width":707,"height":12}},{"id":"1ca3072b-6ddc-43d2-a47e-5ca85d2bb108","block_type":"box","text":"tranche.","page_number":215,"box":{"x":116,"y":180,"width":65,"height":10}},{"id":"5273202d-d405-4583-a30c-e85ed3a06fae","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":215,"box":{"x":116,"y":211,"width":379,"height":12}},{"id":"5619a0c2-9dcd-4f20-aa77-b543cae942da","block_type":"box","text":"Exchange-traded equity options (except ETF","page_number":215,"box":{"x":497,"y":211,"width":342,"height":12}},{"id":"1621ed40-c0eb-495d-a9b1-61ac39721a07","block_type":"box","text":"options, equity index options or those that are customized) for which market quotations are readily","page_number":215,"box":{"x":116,"y":227,"width":733,"height":12}},{"id":"0beaba15-0d67-43e9-9098-0a7c7b1b04a4","block_type":"box","text":"available are valued at the mean of the last bid and ask prices as quoted on the Exchange or the board","page_number":215,"box":{"x":116,"y":242,"width":771,"height":12}},{"id":"c60d2eeb-3229-42b4-bbd7-b3c365659823","block_type":"box","text":"of trade on which such options are traded. In the event that there is no mean price available for an","page_number":215,"box":{"x":116,"y":258,"width":734,"height":11}},{"id":"358756a1-3303-499d-9181-c95f24fae1de","block_type":"box","text":"exchange-traded equity option held by a Fund on a day on which the Fund values such option, the last","page_number":215,"box":{"x":116,"y":273,"width":766,"height":12}},{"id":"03bc74e8-d9fe-44c2-a8b4-8000c195e82f","block_type":"box","text":"bid (long positions) or ask (short positions) price, if available, will be used as the value of such option. If","page_number":215,"box":{"x":117,"y":289,"width":771,"height":12}},{"id":"de948cc9-7a07-4233-9ee5-85a379dbc747","block_type":"box","text":"no bid or ask price is available on a day on which a Fund values such option, the prior day’s price will","page_number":215,"box":{"x":117,"y":304,"width":755,"height":12}},{"id":"05a41f7d-84f0-49f7-94bf-a85d47717d05","block_type":"box","text":"be used, unless BlackRock determines that such prior day’s price no longer reflects the fair value of","page_number":215,"box":{"x":117,"y":320,"width":743,"height":12}},{"id":"9aba9459-c3a2-4b64-8ce2-ad57d723f279","block_type":"box","text":"the option, in which case such option will be treated as a Fair Value Asset. Customized exchange","page_number":215,"box":{"x":116,"y":335,"width":729,"height":12}},{"id":"fb5e4b42-2341-4e33-970d-1ee89159e020","block_type":"box","text":"traded equity options, ETF options, equity index options and OTC derivatives, may be valued using a","page_number":215,"box":{"x":116,"y":351,"width":755,"height":12}},{"id":"306388ea-695c-40d7-ae85-d26020dba7b5","block_type":"box","text":"mathematical model which may incorporate a number of market data factors. Financial futures","page_number":215,"box":{"x":117,"y":366,"width":703,"height":12}},{"id":"4b25db08-8dc0-4a3b-bfd1-74d7dd43c740","block_type":"box","text":"contracts and options thereon, which are traded on exchanges, are valued at their last sale price or","page_number":215,"box":{"x":116,"y":382,"width":741,"height":12}},{"id":"44ed75f7-98db-436f-aab5-1fd85e803fc1","block_type":"box","text":"settle price as of the close of such exchanges. Swap agreements and other derivatives are generally","page_number":215,"box":{"x":116,"y":397,"width":752,"height":12}},{"id":"847a84ac-cea0-4dd7-9317-5efc9b042636","block_type":"box","text":"valued daily based upon quotations from market makers or by a pricing service in accordance with the","page_number":215,"box":{"x":116,"y":413,"width":763,"height":12}},{"id":"be704964-ea9b-4a26-8eca-2388c2ed4eaa","block_type":"box","text":"Valuation Procedures.","page_number":215,"box":{"x":116,"y":428,"width":170,"height":10}},{"id":"4cd502ed-e1eb-4159-8aa1-d0b0a4d387f3","block_type":"box","text":"Underlying Funds.","page_number":215,"box":{"x":117,"y":459,"width":145,"height":12}},{"id":"5104bafe-fa94-46f7-8f3b-a64b36c8c364","block_type":"box","text":"Shares of underlying open-end funds (including money market funds) are valued","page_number":215,"box":{"x":263,"y":459,"width":609,"height":12}},{"id":"875fdfff-96a7-4348-aae8-e734523d6ed6","block_type":"box","text":"at NAV. Shares of underlying exchange-traded closed-end funds or other ETFs will be valued at their","page_number":215,"box":{"x":116,"y":475,"width":755,"height":12}},{"id":"afa7884e-76d0-4c86-ab73-a432cee09ede","block_type":"box","text":"most recent closing price.","page_number":215,"box":{"x":117,"y":490,"width":194,"height":12}},{"id":"ca949bc2-e980-440f-ac89-a9ef5a4ce63d","block_type":"box","text":"General Valuation Information.","page_number":215,"box":{"x":116,"y":521,"width":244,"height":10}},{"id":"d0935651-5cf3-4d3b-9c60-5dd1f3f87140","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker","page_number":215,"box":{"x":361,"y":521,"width":520,"height":12}},{"id":"20b3f8d4-2d6b-4943-a53a-ed69b5a3a176","block_type":"box","text":"dealers or market makers to value each Fund’s securities and other assets and liabilities are based on","page_number":215,"box":{"x":116,"y":537,"width":764,"height":9}},{"id":"d6274cca-a84a-4ce8-ade3-ea626a92ae3d","block_type":"box","text":"information available at the time the Fund values its assets and liabilities. In the event that a pricing","page_number":215,"box":{"x":117,"y":552,"width":740,"height":12}},{"id":"61a408b9-9419-4315-9b51-1cbcdc1922a3","block_type":"box","text":"service quotation is revised or updated subsequent to the day on which the Fund valued such security,","page_number":215,"box":{"x":116,"y":568,"width":767,"height":12}},{"id":"bd566619-c622-4b8c-82fb-1dd08603a67c","block_type":"box","text":"the revised pricing service quotation generally will be applied prospectively. Such determination will be","page_number":215,"box":{"x":116,"y":583,"width":764,"height":12}},{"id":"c6b1b414-3b31-42b1-bccc-61a99c7eaab2","block_type":"box","text":"made considering pertinent facts and circumstances surrounding the revision.","page_number":215,"box":{"x":117,"y":599,"width":581,"height":12}},{"id":"c7abc33a-6304-4baa-8d7d-18825cc2592e","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third","page_number":215,"box":{"x":117,"y":622,"width":723,"height":12}},{"id":"deb861d4-5ab4-4c08-ac08-60aa88655ae7","block_type":"box","text":"party pricing services, which may use, without limitation, evaluated pricing methods that take into","page_number":215,"box":{"x":117,"y":638,"width":723,"height":11}},{"id":"0ddf4325-3b07-4c0d-b238-ef9be34ada45","block_type":"box","text":"consideration market indexes, matrices, yield curves and other specified inputs and assumptions. This","page_number":215,"box":{"x":116,"y":653,"width":764,"height":12}},{"id":"ad8ee346-962d-4203-b5a3-6c2952df04e6","block_type":"box","text":"may result in the assets being valued at a price different from the price that would have been","page_number":215,"box":{"x":117,"y":668,"width":687,"height":12}},{"id":"9443c395-b354-4255-a0d4-4573a3360456","block_type":"box","text":"determined had the evaluated pricing method not been used. The price the Fund could receive upon","page_number":215,"box":{"x":116,"y":684,"width":744,"height":12}},{"id":"c7434b1c-1662-4808-9984-5d5b7d639fee","block_type":"box","text":"the sale of any particular portfolio investment may differ from the Fund’s valuation of the investment,","page_number":215,"box":{"x":116,"y":699,"width":742,"height":13}},{"id":"22460589-b2ef-4f66-b752-afa226f50682","block_type":"box","text":"particularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":215,"box":{"x":117,"y":715,"width":718,"height":12}},{"id":"82b056ce-9548-490d-8cd9-a695b0280b61","block_type":"box","text":"methodology or a price provided by an independent pricing service. As a result, the price received","page_number":215,"box":{"x":117,"y":731,"width":724,"height":12}},{"id":"7f656784-98dd-4443-ba02-73b00cffd99c","block_type":"box","text":"upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could","page_number":215,"box":{"x":117,"y":746,"width":747,"height":12}},{"id":"a869c45c-0c38-471e-b194-0e13c64d58a7","block_type":"box","text":"realize a greater than expected loss or lesser than expected gain upon the sale of the investment. The","page_number":215,"box":{"x":117,"y":761,"width":758,"height":13}},{"id":"541a026e-6e23-436c-bc26-e000a9e2ed10","block_type":"box","text":"Fund’s ability to value its investment may also be impacted by technological issues and/or errors by","page_number":215,"box":{"x":117,"y":777,"width":738,"height":12}},{"id":"ebd7b31e-4c53-4657-b051-87dca27bdf75","block_type":"box","text":"pricing services or other third-party service providers.","page_number":215,"box":{"x":117,"y":793,"width":393,"height":12}},{"id":"fbf9f030-479b-46b9-b345-3ea5d94efb9d","block_type":"box","text":"In the event that application of the methods of valuation discussed above result in a price for a security","page_number":215,"box":{"x":117,"y":823,"width":761,"height":13}},{"id":"1fff44f2-8c4b-4409-a1d0-4595a5ed625c","block_type":"box","text":"which is deemed not to be representative of the fair market value of such security, the security will be","page_number":215,"box":{"x":116,"y":839,"width":756,"height":12}},{"id":"63b22712-caa1-4fb0-ba86-a59fba6486bc","block_type":"box","text":"valued by, under the direction of or in accordance with a method approved by BlackRock, the Fund’s","page_number":215,"box":{"x":116,"y":854,"width":752,"height":13}},{"id":"44d7ed3e-e1d0-47ff-9af4-8c09622221e6","block_type":"box","text":"valuation designee, as reflecting fair value. All other assets and liabilities (including securities for which","page_number":215,"box":{"x":116,"y":870,"width":767,"height":12}},{"id":"f9eef87e-ca02-4bf9-b52e-ddd078a7413b","block_type":"box","text":"II-156","page_number":215,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"dcb5263d-b524-4236-9cb6-e582adfc0c95","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":215,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"33919042-ccf0-42cb-bfed-a6496cf5e29a","block_type":"box","text":"market quotations are not readily available) held by a Fund (including restricted securities and private","page_number":216,"box":{"x":117,"y":87,"width":756,"height":12}},{"id":"dcbc372d-9971-4bcd-b463-64d8890a481e","block_type":"box","text":"market investments, as applicable) are valued at fair value as determined in good faith by BlackRock","page_number":216,"box":{"x":117,"y":102,"width":752,"height":13}},{"id":"15229173-7796-49cb-848f-3752eb5bdb3e","block_type":"box","text":"pursuant to the Valuation Procedures. Any assets and liabilities which are denominated in a foreign","page_number":216,"box":{"x":117,"y":118,"width":740,"height":12}},{"id":"7d0bebe3-1a09-475b-82b0-79a0fc1f395d","block_type":"box","text":"currency are translated into U.S. dollars at the prevailing market rates.","page_number":216,"box":{"x":116,"y":134,"width":527,"height":12}},{"id":"5e459c62-e5b3-47d2-b7a0-f8f1736b627a","block_type":"box","text":"Certain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets","page_number":216,"box":{"x":117,"y":165,"width":754,"height":12}},{"id":"c9456cb5-2974-4c45-b0ce-7ea29ec55a07","block_type":"box","text":"on days on which a Fund’s NAV is not calculated. In","page_number":216,"box":{"x":116,"y":180,"width":392,"height":12}},{"id":"6dc8193c-d0e4-46bd-875b-2f27eca95b41","block_type":"box","text":"such cases, the NAV of a Fund’s shares may be","page_number":216,"box":{"x":508,"y":180,"width":364,"height":12}},{"id":"b5ba092a-5821-499f-9e03-451a4bc7ca37","block_type":"box","text":"significantly affected on days when investors can neither purchase nor redeem shares of the Fund.","page_number":216,"box":{"x":116,"y":196,"width":739,"height":12}},{"id":"515a18da-b98c-457b-b8f1-2a5909971c90","block_type":"box","text":"Fair Value.","page_number":216,"box":{"x":117,"y":227,"width":83,"height":9}},{"id":"1cb2dae8-d795-4f23-b3b8-72daf53f69cb","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be","page_number":216,"box":{"x":201,"y":227,"width":639,"height":12}},{"id":"21886255-bf7d-421c-9799-cbb24c772861","block_type":"box","text":"unreliable, a Fund’s investments are valued at fair value (“Fair Value Assets”). 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BlackRock may reasonably","page_number":216,"box":{"x":116,"y":289,"width":704,"height":12}},{"id":"d156b57a-ba2b-4307-b9f8-f0ea91f32511","block_type":"box","text":"conclude that a market quotation is not readily available or is unreliable if, among other things, a","page_number":216,"box":{"x":116,"y":304,"width":718,"height":12}},{"id":"a8f94e59-d5e0-404b-ae18-95339c4864ff","block_type":"box","text":"security or other asset or liability does not have a price source due to its complete lack of trading, if","page_number":216,"box":{"x":116,"y":320,"width":739,"height":12}},{"id":"4b77fdb1-4b9f-4830-97a4-c0133e0b9cb7","block_type":"box","text":"BlackRock believes a market quotation from a broker-dealer or other source is unreliable (e.g., where it","page_number":216,"box":{"x":117,"y":335,"width":770,"height":12}},{"id":"65773d19-ed0b-475d-ab40-2069f8c503f5","block_type":"box","text":"varies significantly from a recent trade, or no longer reflects the fair value of the security or other asset","page_number":216,"box":{"x":116,"y":351,"width":765,"height":12}},{"id":"4d7f93ec-66dd-43fb-b487-28a0cc1ae145","block_type":"box","text":"or liability subsequent to the most recent market quotation), or where the security or other asset or","page_number":216,"box":{"x":116,"y":366,"width":735,"height":12}},{"id":"61f7d615-df4d-4974-bc09-0aefda473e56","block_type":"box","text":"liability is only thinly traded or due to the occurrence of a significant event subsequent to the most","page_number":216,"box":{"x":117,"y":382,"width":728,"height":12}},{"id":"ea6e3661-a2b6-46d3-b058-271c9ae8648e","block_type":"box","text":"recent market quotation. For this purpose, a “significant event” is deemed to occur if BlackRock","page_number":216,"box":{"x":117,"y":397,"width":711,"height":12}},{"id":"8b37c95a-0f66-4c57-8788-f88019b1fc1a","block_type":"box","text":"determines, in its reasonable business judgment, that an event has occurred after the close of trading","page_number":216,"box":{"x":116,"y":413,"width":759,"height":12}},{"id":"4770a94b-f5be-4581-bd99-d3e5e4f46134","block_type":"box","text":"for an asset or liability but prior to or at the time of pricing a Fund’s assets or liabilities, is likely to cause","page_number":216,"box":{"x":116,"y":428,"width":771,"height":12}},{"id":"41652199-55d9-437b-9775-7204484e93ba","block_type":"box","text":"a material change to the last exchange closing price or closing market price of one or more assets held","page_number":216,"box":{"x":116,"y":444,"width":770,"height":12}},{"id":"793d027f-1e20-4a3f-9ccd-876cd982f9b6","block_type":"box","text":"by, or liabilities of, the Fund. 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For certain foreign assets, a","page_number":216,"box":{"x":116,"y":521,"width":759,"height":12}},{"id":"9aeab6e2-b99f-43a6-9fe9-bc884eb5dc4d","block_type":"box","text":"third-party vendor supplies evaluated, systematic fair value pricing based upon the movement of a","page_number":216,"box":{"x":116,"y":537,"width":733,"height":12}},{"id":"c1dc3ead-4c1f-4a25-8a77-84f87654652e","block_type":"box","text":"proprietary multi-factor model after the relevant foreign markets have closed. 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In addition,","page_number":216,"box":{"x":117,"y":645,"width":765,"height":12}},{"id":"40a3d15e-4be8-45be-955f-82f3e3721608","block_type":"box","text":"the Funds’ accounting agent assists BlackRock by periodically endeavoring to confirm the prices it","page_number":216,"box":{"x":116,"y":661,"width":729,"height":12}},{"id":"b7a56ef4-ef79-4a81-8e6f-db6f52cd28a0","block_type":"box","text":"receives from all third-party pricing services, index providers and broker-dealers. BlackRock regularly","page_number":216,"box":{"x":117,"y":676,"width":750,"height":12}},{"id":"f0bb6670-908d-421a-bec1-122f6c6053c3","block_type":"box","text":"evaluates the values assigned to the securities and other assets and liabilities of the Funds.","page_number":216,"box":{"x":116,"y":692,"width":679,"height":12}},{"id":"e57638db-d484-44d7-9ed7-3fd3674683bb","block_type":"box","text":"When determining the price for a Fair Value Asset, BlackRock will seek to determine the price that a","page_number":216,"box":{"x":116,"y":723,"width":743,"height":12}},{"id":"00a29eb5-4459-44d2-a982-d16da1db64d4","block_type":"box","text":"Fund might reasonably expect to receive from the current sale of that asset or liability in an","page_number":216,"box":{"x":117,"y":738,"width":672,"height":12}},{"id":"43405bcd-d89f-4686-8214-50f57dd93f3f","block_type":"box","text":"arm’s-length transaction on the date on which the asset or liability is being valued, and does not seek","page_number":216,"box":{"x":116,"y":754,"width":751,"height":12}},{"id":"b41cd56f-39f3-43de-9142-cbb2fff0aa09","block_type":"box","text":"to determine the price a Fund might reasonably expect to receive for selling an asset or liability at a","page_number":216,"box":{"x":116,"y":769,"width":736,"height":12}},{"id":"a3b9d86e-46d3-402c-a9f0-fde8d1ba581f","block_type":"box","text":"later time or if it holds the asset or liability to maturity. Fair value determinations will be based upon all","page_number":216,"box":{"x":117,"y":785,"width":753,"height":12}},{"id":"37c93059-e760-40d9-af98-adbfd5bb48a8","block_type":"box","text":"available factors that BlackRock deems relevant at the time of the determination, and may be based on","page_number":216,"box":{"x":116,"y":800,"width":765,"height":12}},{"id":"845c841f-ad85-4451-bffd-94c60e084852","block_type":"box","text":"analytical values determined by BlackRock using proprietary or third-party valuation models.","page_number":216,"box":{"x":116,"y":816,"width":683,"height":12}},{"id":"d985a4b1-ef6a-4a7d-a0d8-74634efcf63c","block_type":"box","text":"Fair value represents a good faith approximation of the value of an asset or liability. 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Prices of actual, executed or historical transactions in the","page_number":217,"box":{"x":117,"y":102,"width":726,"height":12}},{"id":"ac36c8c7-96c7-44f4-8e6f-460a4ddbdab6","block_type":"box","text":"relevant investment (or comparable instruments) or, where appropriate, an appraisal by a third-party","page_number":217,"box":{"x":117,"y":118,"width":747,"height":12}},{"id":"be964f44-79f8-48d9-b3bc-aa218204502d","block_type":"box","text":"experienced in the valuation of similar instruments, may also be used as a basis for establishing the","page_number":217,"box":{"x":116,"y":134,"width":745,"height":12}},{"id":"ada3378c-db8b-4ee6-bb17-f92b6bf8077a","block_type":"box","text":"fair value of an investment.","page_number":217,"box":{"x":116,"y":149,"width":206,"height":10}},{"id":"34d37cf6-cf9c-49f8-a486-de1cb118d897","block_type":"box","text":"The fair value of one or more assets or liabilities may not, in retrospect, be the price at which those","page_number":217,"box":{"x":116,"y":178,"width":738,"height":13}},{"id":"cb64f0ce-4099-4beb-b44c-5e5446203261","block_type":"box","text":"assets or liabilities could have been sold during the period in which the particular fair values were used","page_number":217,"box":{"x":116,"y":194,"width":767,"height":12}},{"id":"beb883f7-47d2-4b34-bd5c-84191874bb8c","block_type":"box","text":"in determining a Fund’s NAV. As a result, a Fund’s sale or redemption of its shares at NAV, at a time","page_number":217,"box":{"x":117,"y":209,"width":752,"height":13}},{"id":"8e5a6417-3be3-4986-9976-057b75b30500","block_type":"box","text":"when a holding or holdings are valued at fair value, may have the effect of diluting or increasing the","page_number":217,"box":{"x":116,"y":225,"width":742,"height":12}},{"id":"fde23f99-ce0f-4004-a365-928f0ff861e2","block_type":"box","text":"economic interest of existing shareholders.","page_number":217,"box":{"x":116,"y":240,"width":323,"height":13}},{"id":"96a90d62-aac5-49fb-a242-75606333408a","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting","page_number":217,"box":{"x":117,"y":270,"width":749,"height":12}},{"id":"ba75b532-fcb8-441c-9b71-0d6c08cc6e61","block_type":"box","text":"principles generally accepted in the United States of America (“US GAAP”), follow the requirements for","page_number":217,"box":{"x":117,"y":285,"width":767,"height":13}},{"id":"97fa4242-54da-43bb-bed9-6db3ef9fa9bb","block_type":"box","text":"valuation set forth in Financial Accounting Standards Board Accounting Standards Codification Topic","page_number":217,"box":{"x":116,"y":301,"width":753,"height":12}},{"id":"5d82ea7c-34d1-4010-8a07-282245d18870","block_type":"box","text":"820, “Fair Value Measurements and Disclosures” (“ASC 820”), which defines and establishes a","page_number":217,"box":{"x":116,"y":316,"width":712,"height":13}},{"id":"f5548606-c53e-4d7b-98f5-10cfab54520f","block_type":"box","text":"framework for measuring fair value under US GAAP and expands financial statement disclosure","page_number":217,"box":{"x":116,"y":332,"width":717,"height":12}},{"id":"059f1177-67ce-4921-98c7-026e2f7de5a3","block_type":"box","text":"requirements relating to fair value measurements.","page_number":217,"box":{"x":117,"y":347,"width":374,"height":13}},{"id":"c7cb6733-f79a-4cbf-8eb7-875183dc552a","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they","page_number":217,"box":{"x":117,"y":377,"width":747,"height":12}},{"id":"b1599821-016f-464d-a8fa-7d8242572fd8","block_type":"box","text":"invest are evolving. Such changes may adversely affect a Fund. For example, the evolution of rules","page_number":217,"box":{"x":117,"y":392,"width":743,"height":13}},{"id":"bb5fcef4-c1b5-485a-b402-868314363d1d","block_type":"box","text":"governing the determination of the fair market value of assets or liabilities, to the extent such rules","page_number":217,"box":{"x":116,"y":408,"width":733,"height":12}},{"id":"4309cfcf-ffca-45d2-b2eb-5f508da0a4a1","block_type":"box","text":"become more stringent, would tend to increase the cost and/or reduce the availability of third-party","page_number":217,"box":{"x":117,"y":423,"width":735,"height":13}},{"id":"15c1ffbe-a235-4bda-828e-fbf2e074abe6","block_type":"box","text":"determinations of fair market value. This may in turn increase the costs associated with selling assets","page_number":217,"box":{"x":116,"y":439,"width":758,"height":12}},{"id":"d02aab49-330c-402c-b8a9-9f157c8ba795","block_type":"box","text":"or affect their liquidity due to a Fund’s inability to obtain a third-party determination of fair market value.","page_number":217,"box":{"x":116,"y":454,"width":768,"height":13}},{"id":"e8c2d6af-f559-42b7-89b6-b52ac6e46c84","block_type":"box","text":"Computation of Offering Price Per Share","page_number":217,"box":{"x":116,"y":484,"width":328,"height":12}},{"id":"6bc5358b-c0c1-43b6-8328-d38c65915df4","block_type":"box","text":"See “Computation of Offering Price Per Share” in Part I of a Fund’s SAI for an illustration of the","page_number":217,"box":{"x":116,"y":506,"width":710,"height":12}},{"id":"00bf865b-1921-4450-8577-fb905be0cc13","block_type":"box","text":"computation of the offering price for shares of your Fund.","page_number":217,"box":{"x":116,"y":522,"width":429,"height":12}},{"id":"4b41574b-0707-4a4b-b3c7-3119533320e5","block_type":"box","text":"P","page_number":217,"box":{"x":337,"y":565,"width":10,"height":10}},{"id":"a7245a64-3c80-438b-9423-9d741223b3f0","block_type":"box","text":"ORTFOLIO","page_number":217,"box":{"x":348,"y":568,"width":69,"height":7}},{"id":"8a8b3d56-d935-4521-9391-936707cd4bcf","block_type":"box","text":"T","page_number":217,"box":{"x":418,"y":565,"width":14,"height":10}},{"id":"8579f2ca-98dd-429a-8410-9786ef81b62a","block_type":"box","text":"RANSACTIONS","page_number":217,"box":{"x":434,"y":568,"width":98,"height":7}},{"id":"6db4e64d-7bd3-4020-99f7-6232fc3f1fd1","block_type":"box","text":"AND","page_number":217,"box":{"x":538,"y":568,"width":28,"height":7}},{"id":"e485eabf-5111-4c41-a1b0-2d45fb5cddf3","block_type":"box","text":"B","page_number":217,"box":{"x":567,"y":565,"width":16,"height":10}},{"id":"98adc5da-a9e2-48f2-be4c-9ad49b068d7c","block_type":"box","text":"ROKERAGE","page_number":217,"box":{"x":585,"y":568,"width":77,"height":7}},{"id":"d127f4db-5538-4e73-9642-75c09496c338","block_type":"box","text":"Transactions in Portfolio Securities","page_number":217,"box":{"x":116,"y":595,"width":288,"height":9}},{"id":"696a3496-eaee-4c2f-94d5-559dc008fdf2","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the","page_number":217,"box":{"x":116,"y":617,"width":738,"height":12}},{"id":"e4af446a-bb3a-4ace-b473-053cb1345c53","block_type":"box","text":"execution of a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not","page_number":217,"box":{"x":116,"y":633,"width":718,"height":12}},{"id":"1df30497-3c43-47e0-a9b5-df7eb199ada7","block_type":"box","text":"execute transactions through any particular broker or dealer, but seeks to obtain the best net results for","page_number":217,"box":{"x":116,"y":648,"width":772,"height":12}},{"id":"da2c43ad-3609-41a4-be37-ba61c7f446e3","block_type":"box","text":"the Fund, taking into account certain factors set out below. While BlackRock generally seeks","page_number":217,"box":{"x":116,"y":664,"width":687,"height":12}},{"id":"e02d0e9d-d225-43e8-a8cd-744138e3f312","block_type":"box","text":"reasonable trade execution costs, a Fund does not necessarily pay the lowest spread or commission","page_number":217,"box":{"x":117,"y":679,"width":746,"height":12}},{"id":"7e97bdbf-c2a5-4089-afd6-fabf3da84138","block_type":"box","text":"available, and payment of the lowest commission or spread is not necessarily consistent with obtaining","page_number":217,"box":{"x":116,"y":695,"width":762,"height":12}},{"id":"d1030e61-8783-46c9-adb3-5159367fbc29","block_type":"box","text":"the best price and execution in particular transactions. Subject to applicable legal requirements,","page_number":217,"box":{"x":116,"y":710,"width":708,"height":12}},{"id":"c3a4874f-f88d-431d-8fce-267a8c47f456","block_type":"box","text":"BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":217,"box":{"x":117,"y":726,"width":692,"height":12}},{"id":"8ec5852c-0e26-48eb-a2e7-33a8944a32d9","block_type":"box","text":"BlackRock and its clients, including a Fund. In return for such services, BlackRock may cause a Fund","page_number":217,"box":{"x":117,"y":741,"width":752,"height":12}},{"id":"40ce8987-ebe1-4f7a-aa48-8b0c46ea7edb","block_type":"box","text":"to pay a higher commission than other brokers would charge if BlackRock determines in good faith that","page_number":217,"box":{"x":116,"y":757,"width":765,"height":12}},{"id":"bf6a14f3-51af-4d89-91bd-d34045dbb5bf","block_type":"box","text":"the commission is reasonable in relation to the services provided.","page_number":217,"box":{"x":116,"y":772,"width":485,"height":12}},{"id":"a77b2b71-c447-4de4-a6a6-6d3f5825a228","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial","page_number":217,"box":{"x":117,"y":802,"width":733,"height":12}},{"id":"4c3db2ef-d296-4f5c-8259-19e106b43d95","block_type":"box","text":"interests of a Master Portfolio, it is expected that all transactions in portfolio securities will be entered","page_number":217,"box":{"x":117,"y":817,"width":745,"height":12}},{"id":"6e257f00-7096-4c79-ad2f-c2dc0fc38113","block_type":"box","text":"into by the Master Portfolio.","page_number":217,"box":{"x":117,"y":833,"width":208,"height":12}},{"id":"cb30ae42-60a8-4f3a-8ba6-5b0a980eae51","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to","page_number":217,"box":{"x":117,"y":862,"width":767,"height":12}},{"id":"57d00991-34ca-4237-b86a-2ed2465cab72","block_type":"box","text":"obtain the best price and most favorable execution for a Fund, taking into account a variety of factors","page_number":217,"box":{"x":116,"y":878,"width":754,"height":12}},{"id":"e4a9264e-a5ee-40d9-b0e7-952a2925adf0","block_type":"box","text":"II-158","page_number":217,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"d71365de-5cca-4702-acf0-17ffe980be9c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":217,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f521f695-c73d-4f0b-9ac2-6a47a9b5cdae","block_type":"box","text":"including: (i) the size, nature and character of the security or instrument being traded and the markets","page_number":218,"box":{"x":117,"y":87,"width":758,"height":12}},{"id":"4d159738-2f49-4bd1-b1b8-ea6f67908c99","block_type":"box","text":"in which it is purchased or sold; (ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of","page_number":218,"box":{"x":117,"y":102,"width":764,"height":13}},{"id":"d1ed9d44-f559-4c01-845b-db425fa53e5d","block_type":"box","text":"the expected commission rates and spreads currently available; (iv) the activity existing and expected","page_number":218,"box":{"x":116,"y":118,"width":759,"height":12}},{"id":"b3224730-cbef-4b42-9069-09d3e1d54a86","block_type":"box","text":"in the market for the particular security or instrument, including any anticipated execution difficulties;","page_number":218,"box":{"x":117,"y":134,"width":746,"height":12}},{"id":"b46386d1-b217-44c6-aa49-3b46a7fd7e36","block_type":"box","text":"(v) the full range of brokerage services provided; (vi) the broker’s or dealer’s capital; (vii) the quality of","page_number":218,"box":{"x":117,"y":149,"width":759,"height":12}},{"id":"73fd37d5-088a-4b45-9013-7095ceae0baf","block_type":"box","text":"research and research services provided; (viii) the reasonableness of the commission, dealer spread","page_number":218,"box":{"x":117,"y":165,"width":752,"height":12}},{"id":"c6f2543a-2988-4390-b149-610b709329c5","block_type":"box","text":"or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual or apparent","page_number":218,"box":{"x":116,"y":180,"width":760,"height":12}},{"id":"3f952115-f7c5-4e6d-83e2-d11c3706ad97","block_type":"box","text":"operational problems of a broker or dealer.","page_number":218,"box":{"x":116,"y":196,"width":323,"height":11}},{"id":"f3483ec7-9cf0-4521-860a-af864a699b62","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain","page_number":218,"box":{"x":116,"y":227,"width":723,"height":12}},{"id":"35b6fa87-62b5-431e-9ba3-67dd939aac1a","block_type":"box","text":"circumstances to cause an account to pay a broker or dealer a commission for effecting a transaction","page_number":218,"box":{"x":116,"y":242,"width":757,"height":12}},{"id":"7dfbd9ed-dc07-40ad-abc0-6d83299f30f2","block_type":"box","text":"that exceeds the amount another broker or dealer would have charged for effecting the same","page_number":218,"box":{"x":116,"y":258,"width":696,"height":12}},{"id":"88bce262-d8e5-4970-9ce8-4ba9b2bf1199","block_type":"box","text":"transaction in recognition of the value of brokerage and research services provided by that broker or","page_number":218,"box":{"x":116,"y":273,"width":748,"height":12}},{"id":"7306901f-accc-4d86-b869-bdde07d670e4","block_type":"box","text":"dealer. This includes commissions paid on riskless principal transactions under certain conditions.","page_number":218,"box":{"x":116,"y":289,"width":732,"height":12}},{"id":"2e33903f-19d4-4e4b-840e-9d3fc3653ee1","block_type":"box","text":"Brokerage and research services include: (1) furnishing advice as to the value of securities, including","page_number":218,"box":{"x":117,"y":304,"width":754,"height":12}},{"id":"744cf212-6f8f-4c6c-8c28-5e18143d42f0","block_type":"box","text":"pricing and appraisal advice, credit analysis, risk measurement analysis, performance and other","page_number":218,"box":{"x":117,"y":320,"width":716,"height":12}},{"id":"7ac6af0b-3cd2-4b80-b7c1-7d6b5cedb22a","block_type":"box","text":"analysis, as well as the advisability of investing in, purchasing or selling securities, and the availability","page_number":218,"box":{"x":116,"y":335,"width":758,"height":12}},{"id":"d709866d-e8dc-4c94-9619-0f4e3dfc9299","block_type":"box","text":"of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning","page_number":218,"box":{"x":116,"y":351,"width":725,"height":12}},{"id":"1cfb6d97-8702-4c9b-9164-f358c5c9f78c","block_type":"box","text":"issuers, industries, securities, economic factors and trends, portfolio strategy, and the performance of","page_number":218,"box":{"x":117,"y":366,"width":757,"height":12}},{"id":"a62caa65-6672-40a3-b49a-cacce2c0e875","block_type":"box","text":"accounts; and (3) effecting securities transactions and performing functions incidental to securities","page_number":218,"box":{"x":116,"y":382,"width":734,"height":12}},{"id":"6a44e61a-6ecd-4485-a0cb-09792ac6a226","block_type":"box","text":"transactions (such as clearance, settlement, and custody). BlackRock believes that access to","page_number":218,"box":{"x":116,"y":397,"width":698,"height":12}},{"id":"334b0534-233e-4240-b4c2-59833083b21c","block_type":"box","text":"independent investment research is beneficial to its investment decision-making processes and,","page_number":218,"box":{"x":117,"y":413,"width":716,"height":12}},{"id":"d91dce50-993f-4ae5-9128-64fa8e23ba86","block_type":"box","text":"therefore, to the Funds.","page_number":218,"box":{"x":116,"y":428,"width":180,"height":11}},{"id":"6a236f7e-04e7-43f2-8a12-dc093d0e2279","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements","page_number":218,"box":{"x":117,"y":459,"width":739,"height":12}},{"id":"a224f8a3-3d3c-435c-bdb7-2ca389f422f2","block_type":"box","text":"under which BlackRock may execute transactions through a broker-dealer and request that the broker","page_number":218,"box":{"x":117,"y":475,"width":762,"height":12}},{"id":"5afb5c77-6b5d-48f4-a47c-af7c333eb825","block_type":"box","text":"dealer allocate a portion of the commissions or commission credits to another firm that provides","page_number":218,"box":{"x":116,"y":490,"width":715,"height":12}},{"id":"22b89ac2-1464-4211-8590-7ded903f74a7","block_type":"box","text":"research to BlackRock. BlackRock believes that research services obtained through soft dollar or","page_number":218,"box":{"x":117,"y":506,"width":725,"height":12}},{"id":"7e07faba-1093-45be-a778-148014610849","block_type":"box","text":"commission sharing arrangements enhance its investment decision-making capabilities, thereby","page_number":218,"box":{"x":116,"y":521,"width":718,"height":12}},{"id":"012a860c-b7aa-47b4-9f5b-f0bc69aaccc5","block_type":"box","text":"increasing the prospects for higher investment returns. BlackRock will engage only in soft dollar or","page_number":218,"box":{"x":117,"y":537,"width":733,"height":12}},{"id":"f787d72d-be0f-4a91-b19d-302a5e2066e6","block_type":"box","text":"commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":218,"box":{"x":116,"y":552,"width":744,"height":12}},{"id":"c3801a47-82cc-447a-bbdf-ec1aa0e72081","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers,","page_number":218,"box":{"x":117,"y":568,"width":760,"height":12}},{"id":"b79d2a51-150d-4a2f-bf66-7d46cf6f6513","block_type":"box","text":"including BIL, pay for any research out of their own resources and not through soft dollars or","page_number":218,"box":{"x":117,"y":583,"width":689,"height":12}},{"id":"2e0e05c0-ed24-4760-a4a2-b2627a42c32c","block_type":"box","text":"commission sharing arrangements. BlackRock regularly evaluates the soft dollar products and services","page_number":218,"box":{"x":116,"y":599,"width":771,"height":12}},{"id":"36b40b0c-df1a-45ba-a5fb-fb3821d6bab1","block_type":"box","text":"utilized, as well as the overall soft dollar and commission sharing arrangements to ensure that trades","page_number":218,"box":{"x":117,"y":614,"width":753,"height":12}},{"id":"c653b899-41e5-495b-9081-5f608faabc5f","block_type":"box","text":"are executed by firms that are regarded as best able to execute trades for client accounts, while at the","page_number":218,"box":{"x":116,"y":630,"width":764,"height":12}},{"id":"3edc54be-a6dc-4ae7-8172-105e51df9a41","block_type":"box","text":"same time providing access to the research and other services BlackRock views as impactful to its","page_number":218,"box":{"x":116,"y":645,"width":737,"height":12}},{"id":"5e9b9c50-5d63-47d7-890e-5bfa32f34bf1","block_type":"box","text":"trading results.","page_number":218,"box":{"x":116,"y":661,"width":109,"height":12}},{"id":"e02190c5-ba1f-452d-9b28-9f6191299ade","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including","page_number":218,"box":{"x":117,"y":692,"width":752,"height":12}},{"id":"5cd272c4-27ca-49d8-b7b2-d292691361bf","block_type":"box","text":"research (whether prepared by the broker-dealer or prepared by a third-party and provided to","page_number":218,"box":{"x":117,"y":707,"width":691,"height":12}},{"id":"c9ed78d5-603b-48ca-aef0-28bb444cf70a","block_type":"box","text":"BlackRock by the broker-dealer) and execution or brokerage services within applicable rules and","page_number":218,"box":{"x":117,"y":723,"width":716,"height":12}},{"id":"a632b7cf-b97a-4c93-95ec-1e19d4dab6c5","block_type":"box","text":"BlackRock’s policies to the extent that such permitted services do not compromise BlackRock’s ability","page_number":218,"box":{"x":117,"y":738,"width":754,"height":12}},{"id":"a2bd573e-7db5-42d0-b731-7d14e0559f5f","block_type":"box","text":"to seek to obtain best execution. In this regard, the portfolio management investment and/or trading","page_number":218,"box":{"x":116,"y":754,"width":738,"height":12}},{"id":"52ac5e1e-fa9f-4b35-b655-3305381c7f87","block_type":"box","text":"teams may consider a variety of factors, including the degree to which the broker-dealer: (a) provides","page_number":218,"box":{"x":116,"y":769,"width":751,"height":12}},{"id":"6174181c-cb51-4dfa-8ec5-7a1f30dce56f","block_type":"box","text":"access to company management; (b) provides access to their analysts; (c) provides meaningful/","page_number":218,"box":{"x":116,"y":785,"width":714,"height":12}},{"id":"40902881-7744-4545-8328-cfdc9718cdad","block_type":"box","text":"insightful research notes on companies or other potential investments; (d) facilitates calls on which","page_number":218,"box":{"x":117,"y":800,"width":729,"height":12}},{"id":"32eb0a36-ae3a-4c15-a4d7-81b7d197e624","block_type":"box","text":"meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":218,"box":{"x":117,"y":816,"width":745,"height":12}},{"id":"e036a6ea-95ad-4518-aed1-4d6026ae62b7","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are","page_number":218,"box":{"x":116,"y":831,"width":729,"height":12}},{"id":"a730317f-d117-4f80-9a57-eea368302246","block_type":"box","text":"discussed; or (f) provides research tools such as market data, financial analysis, and other third-party","page_number":218,"box":{"x":116,"y":847,"width":757,"height":12}},{"id":"691f59dc-ec16-438d-b124-31a23409f13a","block_type":"box","text":"related research and brokerage tools that aid in the investment process.","page_number":218,"box":{"x":117,"y":862,"width":539,"height":12}},{"id":"d8acf50e-2684-4c06-a790-72ff84246cc8","block_type":"box","text":"II-159","page_number":218,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"9de409d7-eacd-41af-8ca8-6aa93b5452af","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":218,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9073a073-c0a6-4a0a-8250-f6385de40a12","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with","page_number":219,"box":{"x":117,"y":87,"width":751,"height":12}},{"id":"0d6b35d2-d913-40cb-ac38-91884ee29267","block_type":"box","text":"Fund commissions may be in written form or through direct contact with individuals and may include","page_number":219,"box":{"x":117,"y":102,"width":745,"height":13}},{"id":"fc315403-9d69-42da-9433-e950419e2022","block_type":"box","text":"information as to particular companies or industries and securities or groups of securities, as well as","page_number":219,"box":{"x":117,"y":118,"width":746,"height":12}},{"id":"1152acc9-e94b-43ba-aa80-72b6aa9ed40b","block_type":"box","text":"market, economic, or institutional advice and statistical information, political developments and","page_number":219,"box":{"x":117,"y":134,"width":705,"height":11}},{"id":"18d304d6-8ce9-4520-b20c-6c0bf9a1bc85","block_type":"box","text":"technical market information that assists in the valuation of investments. Except as noted immediately","page_number":219,"box":{"x":116,"y":149,"width":760,"height":12}},{"id":"0a0cb217-99b6-42ce-9d85-b68290fdbe1b","block_type":"box","text":"below, research services furnished by brokers may be used in servicing some or all client accounts","page_number":219,"box":{"x":117,"y":165,"width":739,"height":12}},{"id":"60c74f00-b141-469f-8259-7444de03f326","block_type":"box","text":"and not all services may be used in connection with the Fund or account that paid commissions to the","page_number":219,"box":{"x":116,"y":180,"width":760,"height":12}},{"id":"c6cee427-7dad-4532-8479-c4d60205821d","block_type":"box","text":"broker providing such services. In some cases, research information received from brokers by mutual","page_number":219,"box":{"x":117,"y":196,"width":757,"height":12}},{"id":"9e78e450-cf93-446b-942c-8f2f1bde41bc","block_type":"box","text":"fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":219,"box":{"x":116,"y":211,"width":699,"height":12}},{"id":"58312992-a266-4009-b32d-cfc9e1fa1cff","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment","page_number":219,"box":{"x":117,"y":227,"width":708,"height":12}},{"id":"963cb6fa-e799-4887-a172-60d8a0507334","block_type":"box","text":"advisory or other fees paid by a Fund to BlackRock are not reduced as a result of BlackRock’s receipt","page_number":219,"box":{"x":116,"y":242,"width":760,"height":12}},{"id":"a3ca7e7e-31b0-4dcf-a402-fca280538a77","block_type":"box","text":"of research services. In some cases, BlackRock may receive a service from a broker that has both a","page_number":219,"box":{"x":116,"y":258,"width":750,"height":12}},{"id":"b7f28c6d-9dd9-4b62-8c37-c8e2ae734edd","block_type":"box","text":"“research” and a “non-research” use. When this occurs BlackRock makes a good faith allocation,","page_number":219,"box":{"x":116,"y":273,"width":725,"height":12}},{"id":"d184f893-2f6b-421f-a7cc-f2867e9ac53c","block_type":"box","text":"under all the circumstances, between the research and non-research uses of the service. The","page_number":219,"box":{"x":117,"y":289,"width":700,"height":11}},{"id":"e7ca5e0e-40e8-4cc5-b02d-16741ceba005","block_type":"box","text":"percentage of the service that is used for research purposes may be paid for with client commissions,","page_number":219,"box":{"x":117,"y":304,"width":758,"height":12}},{"id":"14f3ea21-f834-44ce-86d8-be1eaa72b43b","block_type":"box","text":"while BlackRock will use its own funds to pay for the percentage of the service that is used for","page_number":219,"box":{"x":116,"y":320,"width":701,"height":12}},{"id":"6f538dd5-b377-45e8-b7d3-77247c86bdf1","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of","page_number":219,"box":{"x":117,"y":335,"width":736,"height":12}},{"id":"065b8360-185b-4ea6-bf1d-ee26f5e5c15c","block_type":"box","text":"interest, but BlackRock believes that its allocation procedures are reasonably designed to ensure that it","page_number":219,"box":{"x":117,"y":351,"width":771,"height":12}},{"id":"4055b2c8-9254-4e1d-95d3-c4f16333ed83","block_type":"box","text":"appropriately allocates the anticipated use of such services to their research and non-research uses.","page_number":219,"box":{"x":116,"y":366,"width":752,"height":12}},{"id":"1c273fbf-f17c-4f04-acf7-d7e4ee5456a8","block_type":"box","text":"Under MiFID II, investment managers in the EU, including BIL, are not able to use soft dollars to pay","page_number":219,"box":{"x":117,"y":397,"width":748,"height":12}},{"id":"74dc7453-427f-42fb-91ed-64a3eb4df3af","block_type":"box","text":"for research from brokers. Investment managers in the EU are required to either pay for research out","page_number":219,"box":{"x":116,"y":413,"width":754,"height":12}},{"id":"1b1ff715-751f-40d8-badc-dd0cf3e3a055","block_type":"box","text":"of their own profit and loss or agree with clients to have research costs paid by clients through","page_number":219,"box":{"x":116,"y":428,"width":702,"height":12}},{"id":"467a5f45-7ca6-4a1f-a076-820c62e9c545","block_type":"box","text":"research payment accounts that are directly funded or funded by a specific client research charge","page_number":219,"box":{"x":117,"y":444,"width":730,"height":12}},{"id":"a033deab-7fb4-4883-bf47-9266ab88f3cf","block_type":"box","text":"collected alongside execution commissions, provided that the payments for research are unbundled","page_number":219,"box":{"x":116,"y":459,"width":745,"height":12}},{"id":"3e25556d-8ec2-4333-b933-8a699d49abea","block_type":"box","text":"from the payments for execution. BIL will pay for any research out of its own resources and not through","page_number":219,"box":{"x":116,"y":475,"width":771,"height":12}},{"id":"bb80303b-59df-4722-86d9-410926a9a1b8","block_type":"box","text":"soft dollars or commission sharing arrangements.","page_number":219,"box":{"x":116,"y":490,"width":372,"height":12}},{"id":"aa44dc2d-0b71-402b-9e99-d472ae145a21","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio","page_number":219,"box":{"x":117,"y":521,"width":740,"height":12}},{"id":"0341e019-c36b-48fd-a7e1-c4babadd7dbd","block_type":"box","text":"with respect to the Feeder Fund (or affiliated persons of such persons), will be made in accordance","page_number":219,"box":{"x":116,"y":537,"width":741,"height":12}},{"id":"0624eafb-2b89-458c-9ee8-09135f38bc0f","block_type":"box","text":"with Rule 17e-1 under the Investment Company Act. Subject to policies established by the Board of","page_number":219,"box":{"x":116,"y":552,"width":743,"height":12}},{"id":"4f4d781a-e9e8-4428-8dfa-216b902ed67b","block_type":"box","text":"Directors of the Master Portfolio, BlackRock is primarily responsible for the execution of the Master","page_number":219,"box":{"x":117,"y":568,"width":737,"height":12}},{"id":"dfd798f5-458b-40a6-8300-77bb52742ce6","block_type":"box","text":"Portfolio’s portfolio transactions and the allocation of brokerage.","page_number":219,"box":{"x":117,"y":583,"width":478,"height":12}},{"id":"8db4ea37-bfe6-4b72-9795-33e5091a687f","block_type":"box","text":"From time to time, a Fund may purchase new issues of securities in a fixed price offering. In these","page_number":219,"box":{"x":117,"y":614,"width":733,"height":12}},{"id":"a1908a21-a84d-4937-9fbe-7bbd4384b185","block_type":"box","text":"situations, the broker may be a member of the selling group that will, in addition to selling securities,","page_number":219,"box":{"x":116,"y":630,"width":746,"height":12}},{"id":"155e3838-ee57-406c-835d-4d07fe02abf0","block_type":"box","text":"provide BlackRock with research services. FINRA has adopted rules expressly permitting these types","page_number":219,"box":{"x":117,"y":645,"width":757,"height":12}},{"id":"7743fddb-d0fd-4e2d-9257-9551ec123804","block_type":"box","text":"of arrangements under certain circumstances. Generally, the broker will provide research “credits” in","page_number":219,"box":{"x":116,"y":661,"width":744,"height":12}},{"id":"700e80c4-5b0d-4067-b111-de0a97fc992c","block_type":"box","text":"these situations at a rate that is higher than that available for typical secondary market transactions.","page_number":219,"box":{"x":116,"y":676,"width":739,"height":12}},{"id":"8cd579e8-ec34-4d9b-baae-cd307dd115dd","block_type":"box","text":"These arrangements may not fall within the safe harbor of Section 28(e).","page_number":219,"box":{"x":116,"y":692,"width":538,"height":12}},{"id":"29354e7b-d912-4dbe-926e-2c3adbbcbee9","block_type":"box","text":"BlackRock does not consider sales of shares of the mutual funds it advises as a factor in the selection","page_number":219,"box":{"x":117,"y":723,"width":756,"height":9}},{"id":"93debf75-7df1-4cd6-aee0-22adad68d303","block_type":"box","text":"of brokers or dealers to execute portfolio transactions for a Fund; however, whether or not a particular","page_number":219,"box":{"x":116,"y":738,"width":756,"height":12}},{"id":"be78c68a-2502-4c43-989d-84baaaac185c","block_type":"box","text":"broker or dealer sells shares of the mutual funds advised by BlackRock neither qualifies nor","page_number":219,"box":{"x":117,"y":754,"width":680,"height":12}},{"id":"7fef49ae-5c7a-4b35-a07a-660eeb273cc1","block_type":"box","text":"disqualifies such broker or dealer to execute transactions for those mutual funds.","page_number":219,"box":{"x":116,"y":769,"width":599,"height":12}},{"id":"9f62ba9c-4ccf-492f-ac95-42fef01bd7a7","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be","page_number":219,"box":{"x":117,"y":800,"width":721,"height":12}},{"id":"badf8a77-013f-4e1b-92cb-7091754309fe","block_type":"box","text":"conducted primarily on the principal stock exchanges of the applicable country. Foreign equity","page_number":219,"box":{"x":116,"y":816,"width":697,"height":12}},{"id":"45d43321-ff11-4d62-9790-da4751af6f08","block_type":"box","text":"securities may be held by a Fund in the form of depositary receipts, or other securities convertible into","page_number":219,"box":{"x":116,"y":831,"width":762,"height":12}},{"id":"2016a099-b5cf-473e-ae69-5895433fb583","block_type":"box","text":"foreign equity securities. Depositary receipts may be listed on stock exchanges, or traded in OTC","page_number":219,"box":{"x":116,"y":847,"width":727,"height":12}},{"id":"ebae8566-2b79-4209-8660-697d9315e59c","block_type":"box","text":"markets in the United States or Europe, as the case may be. American Depositary Receipts, like other","page_number":219,"box":{"x":117,"y":862,"width":762,"height":12}},{"id":"b62f8ca8-7943-4626-8194-358a9d7faa04","block_type":"box","text":"securities traded in the United States, will be subject to negotiated commission rates. Because the","page_number":219,"box":{"x":116,"y":878,"width":734,"height":12}},{"id":"095909da-5888-4806-975a-f7a2a805cfaf","block_type":"box","text":"II-160","page_number":219,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"19ec1b15-ff3f-499b-b0ca-2fffcf5df350","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":219,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2d42f48e-564c-4c0a-b292-e05152a31dd1","block_type":"box","text":"shares of each Fund are redeemable on a daily basis in U.S. dollars, each Fund intends to manage its","page_number":220,"box":{"x":116,"y":87,"width":764,"height":12}},{"id":"fc2dd088-1cc2-4f87-af92-974dbb642851","block_type":"box","text":"portfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the extent","page_number":220,"box":{"x":117,"y":102,"width":725,"height":13}},{"id":"6466b70b-497d-4364-ad1e-c54fd741644c","block_type":"box","text":"necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":220,"box":{"x":117,"y":118,"width":730,"height":12}},{"id":"e060580d-9848-4b7a-aaa9-97ecbc0c7ea0","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":220,"box":{"x":116,"y":134,"width":561,"height":12}},{"id":"fabfdff4-466b-4e05-b9eb-64bd1a1f5b6d","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the","page_number":220,"box":{"x":116,"y":165,"width":366,"height":12}},{"id":"20408d0a-8d2c-4254-83bb-18fc57123942","block_type":"box","text":"SAI for information about the brokerage commissions","page_number":220,"box":{"x":482,"y":165,"width":392,"height":12}},{"id":"97214bca-11a0-4b34-bd67-d2308a097912","block_type":"box","text":"paid by your Fund, including commissions paid to a","page_number":220,"box":{"x":117,"y":180,"width":371,"height":12}},{"id":"d65287c4-66a2-4283-a1bc-0ee3d626bbbc","block_type":"box","text":"ffiliates, if any, for the periods indicated.","page_number":220,"box":{"x":489,"y":180,"width":293,"height":12}},{"id":"96ddd8d9-04fe-4bcd-aae6-328b562182eb","block_type":"box","text":"Each Fund may invest in certain securities traded in the OTC market and intends to deal directly with","page_number":220,"box":{"x":117,"y":211,"width":753,"height":12}},{"id":"4eb9fc95-e724-4a2a-9c61-be626ab72874","block_type":"box","text":"the dealers who make a market in the particular securities, except in those circumstances in which","page_number":220,"box":{"x":116,"y":227,"width":735,"height":11}},{"id":"4f93dffe-3173-41be-aed2-330c963d57b6","block_type":"box","text":"better prices and execution are available elsewhere. Under the Investment Company Act, persons","page_number":220,"box":{"x":117,"y":242,"width":732,"height":12}},{"id":"d992045c-7915-4fda-b660-f87cda6e106e","block_type":"box","text":"affiliated with a Fund and persons who are affiliated with such affiliated persons are prohibited from","page_number":220,"box":{"x":116,"y":258,"width":741,"height":11}},{"id":"0d6aa415-47e2-4eb9-8ca9-1a05186fb8d3","block_type":"box","text":"dealing with the Fund as principal in the purchase and sale of securities unless a permissive order","page_number":220,"box":{"x":116,"y":273,"width":733,"height":12}},{"id":"596785ea-9547-4ebd-bee1-f0201d2bfe17","block_type":"box","text":"allowing such transactions is obtained from the Commission. Since transactions in the OTC market","page_number":220,"box":{"x":116,"y":289,"width":740,"height":12}},{"id":"2ece8b11-934f-44bc-9f88-910b96ac4adb","block_type":"box","text":"usually involve transactions with the dealers acting as principal for their own accounts, the Funds will","page_number":220,"box":{"x":117,"y":304,"width":752,"height":12}},{"id":"5b98f802-1068-40d0-94ca-e86bf9f56d08","block_type":"box","text":"not deal with affiliated persons in connection with such transactions. However, an affiliated person of a","page_number":220,"box":{"x":117,"y":320,"width":764,"height":12}},{"id":"970139e2-47ea-468f-a1d2-dae558ff58a3","block_type":"box","text":"Fund may serve as its broker in OTC transactions conducted on an agency basis provided that, among","page_number":220,"box":{"x":117,"y":335,"width":769,"height":12}},{"id":"ebc4971c-1251-4c7d-a5f5-437e0e45c109","block_type":"box","text":"other things, the fee or commission received by such affiliated broker is reasonable and fair compared","page_number":220,"box":{"x":116,"y":351,"width":762,"height":12}},{"id":"1684034a-cddb-428f-bb6e-36f8fccc82e5","block_type":"box","text":"to the fee or commission received by non-affiliated brokers in connection with comparable transactions.","page_number":220,"box":{"x":116,"y":366,"width":772,"height":12}},{"id":"f8e545ec-1f68-473c-974e-e194be2f1fcd","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government","page_number":220,"box":{"x":116,"y":397,"width":729,"height":12}},{"id":"730fd802-60ba-4778-999f-8d51c8ad4fe2","block_type":"box","text":"Securities, are normally traded on a “net” basis without a stated commission, through dealers acting for","page_number":220,"box":{"x":116,"y":413,"width":770,"height":12}},{"id":"5072de8c-59d7-4ea5-8094-284a452978b0","block_type":"box","text":"their own account and not as brokers. The Funds will primarily engage in transactions with these","page_number":220,"box":{"x":116,"y":428,"width":721,"height":12}},{"id":"a34bba49-d4ee-4494-9151-1f0e5f8090f2","block_type":"box","text":"dealers or deal directly with the issuer unless a better price or execution could be obtained by using a","page_number":220,"box":{"x":116,"y":444,"width":757,"height":12}},{"id":"625ff161-edb8-47bd-9b13-bd4c46e8ef00","block_type":"box","text":"broker. Prices paid to a dealer with respect to both foreign and domestic securities will generally","page_number":220,"box":{"x":117,"y":459,"width":716,"height":12}},{"id":"0dcdc099-3b23-4a12-81ca-1f4d5207adf3","block_type":"box","text":"include a “spread,” which is the difference between the prices at which the dealer is willing to purchase","page_number":220,"box":{"x":117,"y":475,"width":766,"height":12}},{"id":"1901e814-8601-4f6b-9884-9037c21e9f79","block_type":"box","text":"and sell the specific security at the time, and includes the dealer’s normal profit.","page_number":220,"box":{"x":116,"y":490,"width":596,"height":12}},{"id":"7b940283-4dd8-496e-a5ba-ebf3d1d72bdc","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers.","page_number":220,"box":{"x":117,"y":521,"width":756,"height":12}},{"id":"d2bf642c-1fb9-4f15-966e-a3c32356bfc1","block_type":"box","text":"The Funds do not currently expect to incur any brokerage commission expense on such transactions","page_number":220,"box":{"x":116,"y":537,"width":753,"height":12}},{"id":"2cdf7d47-1243-46fa-a200-ae67640980c3","block_type":"box","text":"because money market instruments are generally traded on a “net” basis with dealers acting as","page_number":220,"box":{"x":117,"y":552,"width":712,"height":12}},{"id":"0dd7cf67-6e13-43c0-b1bc-2aff551e3a43","block_type":"box","text":"principal for their own accounts without a stated commission. The price of the security, however,","page_number":220,"box":{"x":117,"y":568,"width":718,"height":12}},{"id":"bb4a6b9a-3766-4aa6-8e79-6bd57b623dd7","block_type":"box","text":"usually includes a profit to the dealer. Each money market fund intends to purchase only securities with","page_number":220,"box":{"x":117,"y":583,"width":771,"height":12}},{"id":"2bdc0a6d-fe2c-4bdd-a97e-314789b27200","block_type":"box","text":"remaining maturities of 397 days or less as determined in accordance with the rules of the","page_number":220,"box":{"x":117,"y":599,"width":672,"height":12}},{"id":"ff608a70-c123-433b-87d4-e0debf12ab8c","block_type":"box","text":"Commission. As a result, the portfolio turnover rates of a money market fund will be relatively high.","page_number":220,"box":{"x":117,"y":614,"width":736,"height":12}},{"id":"1acf46ee-4a09-49e7-a36d-215787ef6e4a","block_type":"box","text":"However, because brokerage commissions will not normally be paid with respect to investments made","page_number":220,"box":{"x":117,"y":630,"width":764,"height":12}},{"id":"38f1d30e-92eb-4525-bbea-1a030b2c2cfc","block_type":"box","text":"by a money market fund, the turnover rates should","page_number":220,"box":{"x":117,"y":645,"width":380,"height":12}},{"id":"d5b0ed15-9050-4c97-8b80-d3f7f2811eef","block_type":"box","text":"not adversely affect the Fund’s NAVs or net","page_number":220,"box":{"x":498,"y":645,"width":328,"height":12}},{"id":"30ff1e0b-71dd-480a-a8a2-51aac87b5e27","block_type":"box","text":"income.","page_number":220,"box":{"x":117,"y":661,"width":56,"height":9}},{"id":"04b4f5ae-2960-4f93-9a33-38146a458f2a","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the","page_number":220,"box":{"x":116,"y":692,"width":689,"height":12}},{"id":"b05b42b5-ec40-457a-b308-96497b820afa","block_type":"box","text":"underwriter, generally referred to as the underwriter’s concession or discount. When offered securities","page_number":220,"box":{"x":117,"y":707,"width":756,"height":12}},{"id":"de1fd339-2a77-4b33-b4df-f3cda05f61c8","block_type":"box","text":"are purchased or sold directly from or to an issuer, no commissions or discounts are paid except where","page_number":220,"box":{"x":116,"y":723,"width":766,"height":12}},{"id":"1677d0da-5a28-47b2-84ec-fb066c778111","block_type":"box","text":"required by local markets.","page_number":220,"box":{"x":117,"y":738,"width":190,"height":12}},{"id":"50b49b46-0073-45bf-a1b7-10dc478ee467","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or","page_number":220,"box":{"x":116,"y":769,"width":755,"height":12}},{"id":"7912a179-545b-4a54-ada7-481fa6a868c7","block_type":"box","text":"dealers selling commercial paper to consider the repurchase of such securities from a Fund prior to","page_number":220,"box":{"x":116,"y":785,"width":736,"height":12}},{"id":"0185b358-1983-4718-86a5-aa5c37adad5f","block_type":"box","text":"maturity at their original cost plus interest (sometimes adjusted to reflect the actual maturity of the","page_number":220,"box":{"x":117,"y":800,"width":723,"height":12}},{"id":"463b7681-a2fe-4af0-b3e1-edf1a798af37","block_type":"box","text":"securities), if it believes that a Fund’s anticipated need for liquidity makes such action desirable. Any","page_number":220,"box":{"x":116,"y":816,"width":744,"height":12}},{"id":"70e09c82-8b04-4e96-8d6d-896ecbe78dd3","block_type":"box","text":"such repurchase prior to maturity reduces the possibility that a Fund would incur a capital loss in","page_number":220,"box":{"x":116,"y":831,"width":720,"height":12}},{"id":"f3419147-b463-421c-b3ec-1fd5a6cff2dc","block_type":"box","text":"liquidating commercial paper, especially if interest rates have risen since acquisition of such","page_number":220,"box":{"x":117,"y":847,"width":685,"height":12}},{"id":"6cb2bafb-08b7-48da-9276-e7f3d3012677","block_type":"box","text":"commercial paper.","page_number":220,"box":{"x":116,"y":862,"width":143,"height":12}},{"id":"788219e8-1ed2-4835-9cba-d0cf48ea036f","block_type":"box","text":"II-161","page_number":220,"box":{"x":480,"y":909,"width":38,"height":9}},{"id":"0759192e-3cd1-40c2-831a-ec01aa3b2a53","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":220,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"39b06cb7-9c95-4447-9750-94b0219ba571","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or","page_number":221,"box":{"x":117,"y":87,"width":744,"height":12}},{"id":"cc2a7ecd-92b9-4e32-8a80-1ab1fb294e53","block_type":"box","text":"sub-advisers are made independently of each other in light of differing conditions. BlackRock allocates","page_number":221,"box":{"x":116,"y":102,"width":765,"height":13}},{"id":"2c4d254f-7be4-490e-b6f6-58f6051fbbe5","block_type":"box","text":"investments among client accounts in a fair and equitable manner over time. A variety of factors will be","page_number":221,"box":{"x":117,"y":118,"width":767,"height":12}},{"id":"6887c229-d4a8-4f2b-b3b8-e209c6c463f6","block_type":"box","text":"considered in making such allocations. These factors include: (i) investment objectives or strategies for","page_number":221,"box":{"x":116,"y":134,"width":769,"height":12}},{"id":"c6987420-e241-4825-a11a-366bff218e78","block_type":"box","text":"particular accounts, including sector, industry, country or region and capitalization weightings, (ii) tax","page_number":221,"box":{"x":117,"y":149,"width":749,"height":12}},{"id":"9f54abab-2ed9-464b-817a-c1ae32e540d3","block_type":"box","text":"considerations of an account, (iii) risk or investment concentration parameters for an account,","page_number":221,"box":{"x":116,"y":165,"width":699,"height":12}},{"id":"44eeaa07-d6fd-4d6f-b766-23367b0acb6b","block_type":"box","text":"(iv) supply or demand for a security at a given price level, (v) size of available investment, (vi) cash","page_number":221,"box":{"x":117,"y":180,"width":737,"height":12}},{"id":"cc2fa698-3236-4972-9a70-998ffd11ab4d","block_type":"box","text":"availability and liquidity requirements for accounts, (vii) regulatory restrictions, (viii) minimum","page_number":221,"box":{"x":116,"y":196,"width":690,"height":12}},{"id":"9ff822e2-3279-4ca0-a690-5ab5f13be3a4","block_type":"box","text":"investment size of an account, (ix) relative size of account, and (x) such other factors as may be","page_number":221,"box":{"x":117,"y":211,"width":717,"height":12}},{"id":"2276ab8a-422d-4feb-aac7-9a8e63a963cc","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client","page_number":221,"box":{"x":116,"y":227,"width":752,"height":12}},{"id":"16d37728-9b25-4946-8e0d-d273518ad093","block_type":"box","text":"account over another based on any of the following considerations: (i) to favor one client account at the","page_number":221,"box":{"x":116,"y":242,"width":771,"height":12}},{"id":"a72d4389-630e-41dd-8f3d-1565062c9b17","block_type":"box","text":"expense of another, (ii) to generate higher fees paid by one client account over another or to produce","page_number":221,"box":{"x":116,"y":258,"width":757,"height":12}},{"id":"63927c6e-ba54-474f-a8f1-015f71fbe61d","block_type":"box","text":"greater performance compensation to BlackRock, (iii) to develop or enhance a relationship with a client","page_number":221,"box":{"x":116,"y":273,"width":770,"height":12}},{"id":"4abcfe42-022c-419d-820d-28873d6c7410","block_type":"box","text":"or prospective client, (iv) to compensate a client for past services or benefits rendered to BlackRock or","page_number":221,"box":{"x":116,"y":289,"width":765,"height":12}},{"id":"731a1050-7545-4e8c-b7c4-ad29f7a117eb","block_type":"box","text":"to induce future services or benefits to be rendered to BlackRock, or (v) to manage or equalize","page_number":221,"box":{"x":116,"y":304,"width":707,"height":12}},{"id":"8c1a5c55-1648-4964-920d-6b30d7dce6d2","block_type":"box","text":"investment performance among different client accounts.","page_number":221,"box":{"x":117,"y":320,"width":426,"height":12}},{"id":"3bfaf6c5-d9e8-49ca-9ded-24b023d0ab11","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment","page_number":221,"box":{"x":117,"y":351,"width":702,"height":12}},{"id":"0b34a5f1-911b-48bf-87e7-3768c31c1cdc","block_type":"box","text":"mandate on a pro rata basis. All allocations of equity securities will be subject, where relevant, to share","page_number":221,"box":{"x":117,"y":366,"width":769,"height":12}},{"id":"5445a941-3cfd-402f-a6af-9387d47d8963","block_type":"box","text":"minimums established for accounts and compliance constraints.","page_number":221,"box":{"x":117,"y":382,"width":479,"height":12}},{"id":"e74d1994-ac73-4148-bf6c-676e83a50c73","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":221,"box":{"x":117,"y":413,"width":768,"height":12}},{"id":"eecfcee9-7b71-4793-a108-d87fbd57df6f","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less","page_number":221,"box":{"x":116,"y":428,"width":769,"height":12}},{"id":"a25b14bc-5299-4df9-aeca-15055bfdc9ca","block_type":"box","text":"than the amount of securities the accounts would otherwise take. In order to allocate these investments","page_number":221,"box":{"x":116,"y":444,"width":772,"height":9}},{"id":"2792f8a4-99a0-49db-91f0-0481290474de","block_type":"box","text":"fairly and equitably among client accounts over time, each portfolio manager or a member of his or her","page_number":221,"box":{"x":116,"y":459,"width":766,"height":12}},{"id":"12be90d3-83ed-4874-a570-e03adcaf4974","block_type":"box","text":"respective investment team will indicate to BlackRock’s trading desk their level of interest in a","page_number":221,"box":{"x":117,"y":475,"width":697,"height":12}},{"id":"f900b937-ec30-4977-a530-0e9f081331bb","block_type":"box","text":"particular offering with respect to eligible client accounts for which that team is responsible. Initial","page_number":221,"box":{"x":117,"y":490,"width":723,"height":12}},{"id":"52565b05-06dd-49d3-afaa-9e4937f32d67","block_type":"box","text":"public offerings of U.S. equity securities will be identified as eligible for particular client accounts that","page_number":221,"box":{"x":117,"y":506,"width":748,"height":12}},{"id":"a0735654-85fc-4a92-b680-3ba9f81b51a5","block_type":"box","text":"are managed by portfolio teams who have indicated interest in the offering based on market","page_number":221,"box":{"x":116,"y":521,"width":687,"height":12}},{"id":"0e0b8b6e-69b4-4bdf-a38c-73d1b8496ad4","block_type":"box","text":"capitalization of the issuer of the security and the investment mandate of the client account and in the","page_number":221,"box":{"x":116,"y":537,"width":758,"height":12}},{"id":"d62329b4-7f49-498e-bef2-f92df4abb918","block_type":"box","text":"case of international equity securities, the country where the offering is taking place and the investment","page_number":221,"box":{"x":116,"y":552,"width":771,"height":12}},{"id":"32aa025a-1577-4745-b3e6-e43d2161d6cb","block_type":"box","text":"mandate of the client account. Generally, shares received during the initial public offering will be","page_number":221,"box":{"x":117,"y":568,"width":716,"height":12}},{"id":"49c3214f-c682-487d-b8de-c6ef19f05e36","block_type":"box","text":"allocated among participating client accounts within each investment mandate on a pro rata basis. In","page_number":221,"box":{"x":116,"y":583,"width":752,"height":12}},{"id":"6c5d071f-eee6-471e-9cf3-d1e7ae0ebeff","block_type":"box","text":"situations where supply is too limited to be allocated among all accounts for which the investment is","page_number":221,"box":{"x":116,"y":599,"width":744,"height":12}},{"id":"81d07243-a7f8-4b03-9f12-fff5bd86055b","block_type":"box","text":"eligible, portfolio managers may rotate such investment opportunities among one or more accounts so","page_number":221,"box":{"x":116,"y":614,"width":763,"height":12}},{"id":"500c1926-f1d3-4a2c-8b7c-7e2e788f18cd","block_type":"box","text":"long as the rotation system provides for fair access for all client accounts over time. Other allocation","page_number":221,"box":{"x":117,"y":630,"width":746,"height":12}},{"id":"86c4a404-e221-4e4c-91fa-3718f357f593","block_type":"box","text":"methodologies that are considered by BlackRock to be fair and equitable to clients may be used as","page_number":221,"box":{"x":117,"y":645,"width":739,"height":12}},{"id":"504f6102-69ec-483a-86e7-785d99dbc96e","block_type":"box","text":"well.","page_number":221,"box":{"x":116,"y":661,"width":32,"height":9}},{"id":"d3a6ad5d-ea9d-417e-8977-ee2a3d8bc138","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy","page_number":221,"box":{"x":117,"y":692,"width":760,"height":12}},{"id":"7c6f30f0-dfca-42a3-b86b-b0f75666a920","block_type":"box","text":"and sell the same securities at the same time for different clients based on the particular investment","page_number":221,"box":{"x":116,"y":707,"width":741,"height":12}},{"id":"8609aaf1-92ae-4524-9c37-4357a9d0ef93","block_type":"box","text":"objective, guidelines and strategies of those accounts. For example, BlackRock may decide that it may","page_number":221,"box":{"x":116,"y":723,"width":763,"height":12}},{"id":"9998159b-3fc9-4684-87c3-e19644c5b0ea","block_type":"box","text":"be entirely appropriate for a growth fund to sell a security at the same time a value fund is buying that","page_number":221,"box":{"x":117,"y":738,"width":752,"height":12}},{"id":"dd4af521-307f-4d12-af65-aa93ffef7640","block_type":"box","text":"security. To the extent that transactions on behalf of more than one client of BlackRock or its affiliates","page_number":221,"box":{"x":116,"y":754,"width":754,"height":12}},{"id":"752af9fd-5189-4fa6-9289-6fc9306dba52","block_type":"box","text":"during the same period may increase the demand for securities being purchased or the supply of","page_number":221,"box":{"x":116,"y":769,"width":720,"height":12}},{"id":"91a255d7-1ceb-48cf-a787-d5617c2b6dc6","block_type":"box","text":"securities being sold, there may be an adverse effect on price. For example, sales of a security by","page_number":221,"box":{"x":116,"y":785,"width":728,"height":12}},{"id":"b12d6f80-c678-4c78-bd4e-a8081fa76556","block_type":"box","text":"BlackRock on behalf of one or more of its clients may decrease the market price of such security,","page_number":221,"box":{"x":117,"y":800,"width":720,"height":12}},{"id":"48a5ed56-a502-4d11-837e-e2489c5824cd","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of","page_number":221,"box":{"x":116,"y":816,"width":701,"height":12}},{"id":"b0a270c1-b79f-4c37-991c-5dfec899e0d0","block_type":"box","text":"securities arise for consideration at or about the same time that would involve a Fund or other clients or","page_number":221,"box":{"x":116,"y":831,"width":772,"height":10}},{"id":"08b1dfb6-a3a3-4d2f-a6e8-902047ecc76f","block_type":"box","text":"funds for which BlackRock or an affiliate act as investment manager, transactions in such securities will","page_number":221,"box":{"x":116,"y":847,"width":772,"height":12}},{"id":"c711c4c2-a7e5-48b0-9ddb-13af235c4f67","block_type":"box","text":"be made, insofar as feasible, for the respective funds and clients in a manner deemed equitable to all.","page_number":221,"box":{"x":117,"y":862,"width":760,"height":12}},{"id":"d89f13ab-4861-4b56-87cd-cd74cecf85fd","block_type":"box","text":"II-162","page_number":221,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"968dfeff-100b-4367-8a43-52b1181e48cb","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":221,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f0314006-6403-4ffc-a44c-23b8a8154e50","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":222,"box":{"x":117,"y":87,"width":767,"height":12}},{"id":"ad20eaa5-41a4-48f1-92c1-5e8768c5d927","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":222,"box":{"x":116,"y":102,"width":755,"height":13}},{"id":"c6cde0c9-afed-4020-b101-6cc0f48c3e8e","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or","page_number":222,"box":{"x":116,"y":118,"width":733,"height":12}},{"id":"a95e25c9-77b9-4617-9551-d46bbe7bf753","block_type":"box","text":"investment team will be aggregated in a single order if the trader believes the aggregated trade would","page_number":222,"box":{"x":117,"y":134,"width":758,"height":12}},{"id":"9f6e14c0-1f70-44b0-9297-caa8d74fd9e5","block_type":"box","text":"provide each client with an opportunity to achieve a more favorable execution at a potentially lower","page_number":222,"box":{"x":117,"y":149,"width":737,"height":12}},{"id":"7bfa691c-ba36-4b4d-8547-7457840cf24f","block_type":"box","text":"execution cost. The costs associated with an aggregated order will be shared pro rata among the","page_number":222,"box":{"x":116,"y":165,"width":726,"height":12}},{"id":"e1f2bdf5-2844-4899-afa9-33ccc5161e87","block_type":"box","text":"clients in the aggregated order. Generally, if an order for a particular portfolio manager or management","page_number":222,"box":{"x":116,"y":180,"width":769,"height":12}},{"id":"d1e4b50d-0809-4be1-8c63-790f38397bc6","block_type":"box","text":"team is filled at several different prices through multiple trades, all accounts participating in the order","page_number":222,"box":{"x":116,"y":196,"width":750,"height":12}},{"id":"41ca63e6-4670-4eeb-a5a9-6d6a9aca476c","block_type":"box","text":"will receive the average price except in the case of certain international markets where average pricing","page_number":222,"box":{"x":116,"y":211,"width":767,"height":12}},{"id":"05a139b0-6b1d-48a3-bfcc-0992cce6309b","block_type":"box","text":"is not permitted. While in some cases this practice could have a detrimental effect upon the price or","page_number":222,"box":{"x":117,"y":227,"width":742,"height":11}},{"id":"4c85b4d3-b769-498f-9326-72a9705a86e6","block_type":"box","text":"value of the security as far as a Fund is concerned, in other cases it could be beneficial to the Fund.","page_number":222,"box":{"x":116,"y":242,"width":747,"height":12}},{"id":"dd5403af-2277-4391-8c80-657468cc6efd","block_type":"box","text":"Transactions effected by BlackRock on behalf of more than one of its clients during the same period","page_number":222,"box":{"x":116,"y":258,"width":747,"height":12}},{"id":"78ab8942-cca0-45e1-a279-9db133f444f9","block_type":"box","text":"may increase the demand for securities being purchased or the supply of securities being sold, causing","page_number":222,"box":{"x":117,"y":273,"width":771,"height":12}},{"id":"1a0e72c8-08cf-48f8-8ce0-f3f9332db887","block_type":"box","text":"an adverse effect on price. The trader will give the aggregated order to the broker-dealer that the trader","page_number":222,"box":{"x":116,"y":289,"width":772,"height":12}},{"id":"926cef58-a052-4880-8a16-53d5556913c8","block_type":"box","text":"has identified as being able to provide the best execution of the order. Orders for purchase or sale of","page_number":222,"box":{"x":117,"y":304,"width":751,"height":12}},{"id":"001a1b55-0cdf-4cbd-8f96-59af2b0bbf62","block_type":"box","text":"securities will be placed within a reasonable amount of time of the order receipt and aggregated orders","page_number":222,"box":{"x":116,"y":320,"width":768,"height":12}},{"id":"8ae55668-3dd0-4710-8d82-c9c4caf12933","block_type":"box","text":"will be kept aggregated only long enough to execute the order.","page_number":222,"box":{"x":116,"y":335,"width":469,"height":12}},{"id":"8a76d53b-2e91-48db-a8c6-6e9a454f8ab9","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to","page_number":222,"box":{"x":116,"y":366,"width":765,"height":12}},{"id":"01bac70d-da3d-4e98-81c1-5d8d403aa362","block_type":"box","text":"such securities of which BlackRock, BRIL or any affiliated person (as defined in the Investment","page_number":222,"box":{"x":116,"y":382,"width":709,"height":12}},{"id":"be6ffaa8-44fd-4d49-9b2c-8de7fa6b0aaa","block_type":"box","text":"Company Act) thereof is a member except pursuant to procedures adopted by the Board of Directors in","page_number":222,"box":{"x":117,"y":397,"width":771,"height":12}},{"id":"f4f487b2-001e-493e-9c5a-0d9704762b3b","block_type":"box","text":"accordance with Rule 10f-3 under the Investment Company Act. 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If purchases or sales of portfolio","page_number":222,"box":{"x":116,"y":490,"width":755,"height":12}},{"id":"832170d6-509a-4f6a-b465-6e2097aa0b84","block_type":"box","text":"securities of a Fund and one or more other accounts managed or advised by BlackRock are","page_number":222,"box":{"x":116,"y":506,"width":687,"height":12}},{"id":"7d01dc16-37f2-4a0b-94e2-e011f1564e37","block_type":"box","text":"considered at or about the same time, transactions in such securities are allocated among the Fund","page_number":222,"box":{"x":116,"y":521,"width":745,"height":12}},{"id":"0d0ec828-f6f7-4db2-b03b-d7e9a158730a","block_type":"box","text":"and the other accounts in a manner deemed equitable to all by BlackRock. 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BlackRock may, from","page_number":222,"box":{"x":117,"y":599,"width":754,"height":12}},{"id":"d5143a7c-19ac-4bb0-8add-90b74011aaa0","block_type":"box","text":"time to time, effect trades on behalf of and for the","page_number":222,"box":{"x":116,"y":614,"width":372,"height":11}},{"id":"ba5d2b57-04aa-4776-8c9c-2eb9f44cfed2","block_type":"box","text":"account of a Fund with brokers or dealers that are","page_number":222,"box":{"x":488,"y":614,"width":376,"height":10}},{"id":"9c178df7-5bd0-48a0-8ef8-0bedd1ae344c","block_type":"box","text":"affiliated with BFA, in conformity with the Investment Company Act and Commission rules and","page_number":222,"box":{"x":116,"y":630,"width":703,"height":12}},{"id":"a6ed5baf-0f52-4775-9550-4cda977a1b9f","block_type":"box","text":"regulations. 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A Fund will not deal with affiliates in principal transactions unless permitted by applicable","page_number":222,"box":{"x":116,"y":676,"width":759,"height":12}},{"id":"1fd1731c-5716-4a34-89b8-f2c09b28487e","block_type":"box","text":"Commission rules or regulations, or by Commission exemptive order.","page_number":222,"box":{"x":117,"y":692,"width":512,"height":12}},{"id":"1cba8a5c-0b40-4707-ad36-e8274044f0aa","block_type":"box","text":"Portfolio Turnover","page_number":222,"box":{"x":117,"y":723,"width":146,"height":9}},{"id":"d54fd399-d4f1-4a8a-9e0e-874b81257f61","block_type":"box","text":"The portfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of","page_number":222,"box":{"x":116,"y":746,"width":761,"height":12}},{"id":"fbef6566-4414-4743-862e-be07af6905e6","block_type":"box","text":"portfolio securities (exclusive of purchases or sales of U.S. Government Securities and all other","page_number":222,"box":{"x":117,"y":761,"width":708,"height":13}},{"id":"1ddfb7aa-4833-48ed-bf45-16f6a8a7f5c8","block_type":"box","text":"securities whose maturities at the time of acquisition were one year or less) by the monthly average","page_number":222,"box":{"x":116,"y":777,"width":738,"height":12}},{"id":"155e9566-2ad9-427c-8bdb-b7998163e414","block_type":"box","text":"value of the securities in the portfolio during the year. A high rate of portfolio turnover results in certain","page_number":222,"box":{"x":116,"y":792,"width":757,"height":13}},{"id":"896c4d41-724a-4766-bfee-978e663952d8","block_type":"box","text":"tax consequences, such as increased capital gain dividends and/or ordinary income dividends, and in","page_number":222,"box":{"x":116,"y":808,"width":752,"height":12}},{"id":"2fb4935f-9fc1-4c69-ab6f-50aa0710572b","block_type":"box","text":"correspondingly greater transaction costs in the form of dealer spreads and brokerage commissions,","page_number":222,"box":{"x":116,"y":823,"width":745,"height":13}},{"id":"23980830-378f-4745-a1cf-e92c1ded7d19","block_type":"box","text":"which are borne directly by a Fund.","page_number":222,"box":{"x":116,"y":839,"width":266,"height":12}},{"id":"979edf75-8fbd-42fe-9701-0484da2568de","block_type":"box","text":"II-163","page_number":222,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"2c2769cd-ddd0-4b37-bd70-2889e9c5c91d","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":222,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a688ca36-e2fb-4261-84e3-6c43212cf0aa","block_type":"box","text":"D","page_number":223,"box":{"x":419,"y":87,"width":10,"height":9}},{"id":"0593f89e-9c7c-431c-a799-f21f4828e97e","block_type":"box","text":"IVIDENDS","page_number":223,"box":{"x":431,"y":89,"width":63,"height":8}},{"id":"1cddb7dd-2c43-4a2a-ba02-c05a2fdbe2e8","block_type":"box","text":"AND","page_number":223,"box":{"x":499,"y":89,"width":29,"height":7}},{"id":"f265ae0c-47a6-47ab-a031-6df9c6bf8a48","block_type":"box","text":"T","page_number":223,"box":{"x":529,"y":87,"width":14,"height":9}},{"id":"58d26b31-e1e4-4f00-bd3b-1fbb0edda4cd","block_type":"box","text":"AXES","page_number":223,"box":{"x":544,"y":89,"width":36,"height":8}},{"id":"205c1c5f-1780-41db-8ccb-951ae1f7e6ab","block_type":"box","text":"Dividends","page_number":223,"box":{"x":117,"y":118,"width":84,"height":10}},{"id":"0c882383-c58d-4d64-9e8d-aa108e01a9bd","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from","page_number":223,"box":{"x":117,"y":141,"width":739,"height":12}},{"id":"3e259adc-315f-4c62-9c34-27da989a1be2","block_type":"box","text":"such net investment income are paid as set forth in each Fund’s Prospectus. Each Fund also intends","page_number":223,"box":{"x":116,"y":157,"width":755,"height":12}},{"id":"6b33f9dd-bb2f-40b9-abe6-4676674bfa34","block_type":"box","text":"to distribute all net realized capital gains, if any, as set forth in such Fund’s Prospectus. From time to","page_number":223,"box":{"x":116,"y":172,"width":751,"height":12}},{"id":"258de0b7-164c-4450-bf2a-a56c64544cf3","block_type":"box","text":"time, a Fund may declare a special distribution at or about the end of the calendar year in order to","page_number":223,"box":{"x":116,"y":188,"width":732,"height":12}},{"id":"b69ebe93-221c-4915-8466-e6a2bc2d9a0d","block_type":"box","text":"comply with U.S. federal tax requirements that certain percentages of its ordinary income and capital","page_number":223,"box":{"x":116,"y":203,"width":752,"height":12}},{"id":"1775f84d-d958-4378-b442-f0c7bf97eb76","block_type":"box","text":"gains be distributed during the year. If, in any fiscal year, a Fund has net income from certain foreign","page_number":223,"box":{"x":116,"y":219,"width":751,"height":12}},{"id":"451c8ea6-575c-4c82-9559-3c27c89d089d","block_type":"box","text":"currency transactions, such income will be distributed at least annually.","page_number":223,"box":{"x":116,"y":234,"width":533,"height":12}},{"id":"5b71dabd-1fae-4480-9b0c-51bc00e3a0dc","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares","page_number":223,"box":{"x":117,"y":265,"width":753,"height":12}},{"id":"63150c7e-a0a3-4de4-84cf-754d3394b53a","block_type":"box","text":"of each Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.”","page_number":223,"box":{"x":116,"y":281,"width":745,"height":12}},{"id":"19d4d617-b429-46d7-af16-928d2d31a088","block_type":"box","text":"Shareholders may also elect in writing to receive any such dividends in cash. Dividends are taxable to","page_number":223,"box":{"x":116,"y":296,"width":761,"height":12}},{"id":"ac0979a0-d1d7-4075-9c9b-db0ff2bdf9b1","block_type":"box","text":"shareholders, as discussed below, whether they are reinvested in shares of the Fund or received in","page_number":223,"box":{"x":116,"y":312,"width":743,"height":12}},{"id":"dbf8efec-5871-4b2f-bf6c-77893bd88e88","block_type":"box","text":"cash. The per share dividends on front-end load shares, CDSC shares and Service Shares will be","page_number":223,"box":{"x":116,"y":327,"width":732,"height":12}},{"id":"27927122-2ed2-4129-8eba-d8265617021a","block_type":"box","text":"lower than the per share dividends on Institutional Shares as a result of the service, distribution and","page_number":223,"box":{"x":117,"y":343,"width":743,"height":12}},{"id":"68679911-7819-4062-83d9-1d807be40d53","block_type":"box","text":"higher transfer agency fees applicable to CDSC shares, the service fees applicable to front-end load","page_number":223,"box":{"x":117,"y":358,"width":749,"height":12}},{"id":"d8af5a84-786f-4521-acfa-350c7e8cd897","block_type":"box","text":"shares and Service Shares, and the service and distribution fees applicable to Class R Shares.","page_number":223,"box":{"x":116,"y":374,"width":711,"height":12}},{"id":"f1ce9e37-f1e7-435e-8a9c-edff1e2f4c1f","block_type":"box","text":"Similarly, the per share dividends on CDSC shares and Class R Shares will be lower than the per","page_number":223,"box":{"x":116,"y":389,"width":728,"height":12}},{"id":"0f786f89-0f7c-4dbc-ab5b-0a421bb65661","block_type":"box","text":"share dividends on front-end load shares and Service Shares as a result of the distribution fees and","page_number":223,"box":{"x":116,"y":405,"width":745,"height":9}},{"id":"79c42820-56ff-424e-9e93-fb0ddb7c3a35","block_type":"box","text":"higher transfer agency fees applicable to CDSC shares and the distribution fees applicable to Class R","page_number":223,"box":{"x":117,"y":420,"width":760,"height":12}},{"id":"6d672ae6-5cf5-4534-b46c-3234684bfa34","block_type":"box","text":"Shares, and the per share dividends on CDSC shares will be lower than the per share dividends on","page_number":223,"box":{"x":116,"y":436,"width":742,"height":12}},{"id":"78f11dc4-dacb-4d9a-828f-48c35d4d466e","block_type":"box","text":"Class R Shares as a result of the higher distribution fees and higher transfer agency fees applicable to","page_number":223,"box":{"x":117,"y":451,"width":764,"height":12}},{"id":"bda625c6-3623-4e53-bf51-ec2e09442fa4","block_type":"box","text":"CDSC shares.","page_number":223,"box":{"x":117,"y":467,"width":111,"height":9}},{"id":"33967d28-fd35-4542-a5f3-01f07ca17275","block_type":"box","text":"Taxes","page_number":223,"box":{"x":116,"y":498,"width":52,"height":9}},{"id":"54b390e2-180a-414b-836d-2167253b7d27","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":223,"box":{"x":117,"y":521,"width":761,"height":12}},{"id":"1f0c513a-5b0c-4c02-92e2-ff11771818c2","block_type":"box","text":"companies under the Code. As long as a Fund so qualifies, the Fund (but not its shareholders) will not","page_number":223,"box":{"x":116,"y":537,"width":763,"height":12}},{"id":"840ce642-d930-4ca3-8970-73ac89100565","block_type":"box","text":"be subject to U.S. federal income tax on the part of its investment company taxable income and net","page_number":223,"box":{"x":117,"y":552,"width":742,"height":12}},{"id":"f3f23f74-f03a-42d3-9fa2-3d9952fb12cf","block_type":"box","text":"realized capital gains that it distributes to its shareholders in years in which it distributes at least 90% of","page_number":223,"box":{"x":117,"y":568,"width":770,"height":12}},{"id":"b30b25c5-6ebc-49e9-8804-6c11315e50c1","block_type":"box","text":"its investment company taxable income and at least 90% of its net tax-exempt interest income, if any,","page_number":223,"box":{"x":117,"y":583,"width":757,"height":12}},{"id":"91d06481-59b4-44a1-a529-ee1dc947bd51","block_type":"box","text":"for the year. To qualify as a regulated investment company, a Fund must meet certain requirements","page_number":223,"box":{"x":116,"y":599,"width":746,"height":12}},{"id":"5b60b222-1926-4bbe-a7a2-ddb0d871babf","block_type":"box","text":"regarding the source of its income and the composition and diversification of its assets. See Part II,","page_number":223,"box":{"x":117,"y":614,"width":739,"height":12}},{"id":"5e7aecb1-9015-4ee6-bffb-0d7bf56fed96","block_type":"box","text":"“Investment Risks and Considerations — Investment Restrictions (All Funds)” for a discussion of the","page_number":223,"box":{"x":116,"y":630,"width":749,"height":12}},{"id":"3072d6ce-635f-4980-9da4-8024d1d0adce","block_type":"box","text":"asset diversification requirements. In the case of a Feeder Fund, such Fund may look to the underlying","page_number":223,"box":{"x":116,"y":645,"width":769,"height":12}},{"id":"ea493907-7a18-465f-85ff-28d9a24d7550","block_type":"box","text":"assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":223,"box":{"x":116,"y":661,"width":766,"height":12}},{"id":"a6e5a3db-6e14-4317-b577-8fbfc57ff6db","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment","page_number":223,"box":{"x":117,"y":676,"width":678,"height":12}},{"id":"f8f4640f-ecb9-485d-8f1b-3c3c362955ae","block_type":"box","text":"companies.","page_number":223,"box":{"x":116,"y":692,"width":84,"height":12}},{"id":"21402966-4db1-4392-aed9-f53004248b1c","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","page_number":223,"box":{"x":116,"y":723,"width":737,"height":12}},{"id":"53f5e181-c15e-404f-99fe-e87eb65f9e78","block_type":"box","text":"above or a failure to diversify its holdings in the manner described above by paying a tax, by disposing","page_number":223,"box":{"x":116,"y":738,"width":759,"height":12}},{"id":"0016a66f-ba47-4766-b06e-a7682fd46408","block_type":"box","text":"of certain assets, or by paying a tax and disposing of","page_number":223,"box":{"x":116,"y":754,"width":392,"height":12}},{"id":"50886549-d4fd-46e4-b5e7-e3e7c089896c","block_type":"box","text":"assets. If, in any taxable year, a Fund fails one of","page_number":223,"box":{"x":513,"y":754,"width":366,"height":12}},{"id":"00f82189-6472-49b2-aca6-e8d9f1f934b2","block_type":"box","text":"these tests and does not timely cure the failure, the Fund will be taxed in the same manner as an","page_number":223,"box":{"x":116,"y":769,"width":719,"height":12}},{"id":"58e19823-08fc-4e75-bf74-4ad056f55bf9","block_type":"box","text":"ordinary corporation and distributions to its shareholders will not be deductible by the Fund in","page_number":223,"box":{"x":116,"y":785,"width":690,"height":12}},{"id":"a3c2afbd-241c-4487-9b9d-080eba5dd261","block_type":"box","text":"computing its taxable income. Although in general the passive loss rules of the Code do not apply to","page_number":223,"box":{"x":116,"y":800,"width":743,"height":12}},{"id":"bebe4ec7-8f7e-4807-8ef8-e9df2c66d56e","block_type":"box","text":"regulated investment companies, such rules do apply to a regulated investment company with respect","page_number":223,"box":{"x":117,"y":816,"width":756,"height":12}},{"id":"0d45ea07-9039-4692-bd62-6c532c28e4b0","block_type":"box","text":"to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s investments in","page_number":223,"box":{"x":116,"y":831,"width":744,"height":12}},{"id":"051627a3-3241-4eb3-922f-1f4a5df047a7","block_type":"box","text":"partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject to","page_number":223,"box":{"x":117,"y":847,"width":767,"height":12}},{"id":"8fa354ca-04a5-4ac2-9aca-e35754d88162","block_type":"box","text":"state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":223,"box":{"x":116,"y":862,"width":526,"height":12}},{"id":"b02ac8b8-6a20-4520-8163-b72ead7b57d0","block_type":"box","text":"II-164","page_number":223,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"9a989bee-a3af-43f2-8202-5ddf0d871f9d","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":223,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"7d4fedce-948b-4a92-b0cf-7412e97e651e","block_type":"box","text":"Each Fund intends to distribute substantially all of such income and gains. If, in any taxable year, a","page_number":224,"box":{"x":117,"y":87,"width":738,"height":12}},{"id":"bc5de235-5ce2-4120-ad79-81358a384a4c","block_type":"box","text":"Fund fails to qualify as a regulated investment company under the Code, notwithstanding the","page_number":224,"box":{"x":117,"y":102,"width":694,"height":13}},{"id":"30fc9e01-9541-46c9-887a-ba519f9ce916","block_type":"box","text":"availability of certain relief provisions, such Fund would be taxed in the same manner as an ordinary","page_number":224,"box":{"x":116,"y":118,"width":748,"height":12}},{"id":"7ce0e616-328b-4c61-9d96-262ce1072531","block_type":"box","text":"corporation and all distributions from earnings and profits (as determined under U.S. federal income","page_number":224,"box":{"x":116,"y":134,"width":745,"height":12}},{"id":"88da2c37-a12f-44c5-8ee3-c2a0dbc8bb0e","block_type":"box","text":"tax principles) to its shareholders would be taxable as ordinary dividend income eligible for taxation at","page_number":224,"box":{"x":116,"y":149,"width":759,"height":12}},{"id":"5ab8aeec-037a-43a9-a859-aad8b9ded6b9","block_type":"box","text":"a reduced tax rate for non-corporate shareholders and the dividends-received deduction for corporate","page_number":224,"box":{"x":116,"y":165,"width":760,"height":11}},{"id":"2c4aa485-4c32-4eb5-83ca-2eab393f98c5","block_type":"box","text":"shareholders. However, a Municipal Fund’s distributions derived from income on tax-exempt","page_number":224,"box":{"x":116,"y":180,"width":690,"height":12}},{"id":"6251599c-a517-423c-b206-6e62c26bac86","block_type":"box","text":"obligations, as defined herein, would no longer qualify for treatment as exempt interest. Each Fund that","page_number":224,"box":{"x":116,"y":196,"width":771,"height":12}},{"id":"ddc54685-3c6f-48e2-b5dd-d7db44265113","block_type":"box","text":"is a series of a regulated investment company that consists of multiple series is treated as a separate","page_number":224,"box":{"x":117,"y":211,"width":756,"height":12}},{"id":"f374b477-9f4c-426b-bb8d-dcd938ef8044","block_type":"box","text":"corporation for U.S. federal income tax purposes, and therefore is considered to be a separate entity in","page_number":224,"box":{"x":116,"y":227,"width":769,"height":12}},{"id":"1a885e1e-ab22-41c1-b30c-d93b4f8cda4a","block_type":"box","text":"determining its treatment under the rules for regulated investment companies. Losses in one series of","page_number":224,"box":{"x":116,"y":242,"width":760,"height":12}},{"id":"8d56bc0c-3ce2-4810-ae4e-86569dcf8e30","block_type":"box","text":"a regulated investment company do not offset gains in another, and the requirements (other than","page_number":224,"box":{"x":116,"y":258,"width":724,"height":12}},{"id":"d2d59881-e441-481d-9ea4-9968fc947db1","block_type":"box","text":"certain organizational requirements) for qualifying for regulated investment company status will be","page_number":224,"box":{"x":116,"y":273,"width":732,"height":12}},{"id":"68a9f80c-8e52-4248-af88-630f9406b865","block_type":"box","text":"determined at the level of the individual series. In the following discussion, the term “Fund” means","page_number":224,"box":{"x":116,"y":289,"width":731,"height":12}},{"id":"5bd32beb-51d1-4099-88bc-70afa90ed980","block_type":"box","text":"each individual series, if applicable.","page_number":224,"box":{"x":116,"y":304,"width":268,"height":12}},{"id":"9e9d4645-d0fb-4d1d-91e6-340a62ad345c","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent","page_number":224,"box":{"x":116,"y":335,"width":772,"height":12}},{"id":"6119b92b-9892-4abb-96dd-b1c1a28f03de","block_type":"box","text":"the regulated investment company does not distribute, during each calendar year, at least 98% of its","page_number":224,"box":{"x":116,"y":351,"width":750,"height":12}},{"id":"37869316-c29d-44cc-884a-41342311200a","block_type":"box","text":"ordinary income, determined on a calendar year basis, and at least 98.2% of its capital gain net","page_number":224,"box":{"x":116,"y":366,"width":713,"height":12}},{"id":"2ae111f1-0992-4fb6-91a6-6c299b982f7a","block_type":"box","text":"income, determined, in general, as if the regulated investment company’s taxable year ended on","page_number":224,"box":{"x":117,"y":382,"width":720,"height":12}},{"id":"cf52b51d-8c2a-4146-b429-0e428d4f1cad","block_type":"box","text":"October 31, plus certain undistributed amounts from the previous years. While each Fund intends to","page_number":224,"box":{"x":116,"y":397,"width":747,"height":12}},{"id":"1508f1fe-4631-4906-9519-1a8161a15658","block_type":"box","text":"distribute its income and capital gains in the manner necessary to avoid imposition of the 4% excise","page_number":224,"box":{"x":116,"y":413,"width":745,"height":12}},{"id":"df479d49-96dc-45b1-b4f8-a2527f3d8389","block_type":"box","text":"tax, there can be no assurance that a sufficient amount of the Fund’s taxable income and capital gains","page_number":224,"box":{"x":116,"y":428,"width":765,"height":12}},{"id":"c51bd5de-0804-4c42-b3b5-5a935959fc2a","block_type":"box","text":"will be distributed to avoid entirely the imposition of the tax. In such event, a Fund will be liable for the","page_number":224,"box":{"x":116,"y":444,"width":758,"height":12}},{"id":"26f0921c-32d5-413a-b5cf-61ec26a8dc82","block_type":"box","text":"tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":224,"box":{"x":116,"y":459,"width":666,"height":12}},{"id":"05ae3e69-d5f6-4b78-83d1-edb19c453254","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year,","page_number":224,"box":{"x":117,"y":490,"width":754,"height":12}},{"id":"2d691a58-ad03-448c-ad86-6b31bea02a61","block_type":"box","text":"until they have been reduced to zero. In the event that the Fund were to experience an ownership","page_number":224,"box":{"x":117,"y":506,"width":729,"height":12}},{"id":"391a5cb9-1a2e-42ca-a420-0bced7d3fba1","block_type":"box","text":"change as defined under the Code, the Fund’s loss carryforwards and other favorable tax attributes of","page_number":224,"box":{"x":116,"y":521,"width":761,"height":12}},{"id":"10eeb8b1-dca3-432b-aad8-a2f7c62a48e9","block_type":"box","text":"the Fund, if any, may be subject to limitation.","page_number":224,"box":{"x":116,"y":537,"width":338,"height":12}},{"id":"4cc1c61e-8030-4bc9-9dc5-cd5a39b15050","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net short-term capital gain","page_number":224,"box":{"x":117,"y":568,"width":734,"height":12}},{"id":"c302223a-53f8-4354-bb1c-c765a111cd18","block_type":"box","text":"over net long-term capital loss (together referred to as “ordinary income dividends”) are taxable to","page_number":224,"box":{"x":116,"y":583,"width":730,"height":12}},{"id":"28cccf33-707a-4183-b7f9-69cf9d89ee06","block_type":"box","text":"shareholders as ordinary income. Distributions made from an excess of net long-term capital gain over","page_number":224,"box":{"x":116,"y":599,"width":766,"height":12}},{"id":"7482ddcc-059d-470a-af22-eb659db6f6a7","block_type":"box","text":"net short-term capital loss (including gains or losses from certain transactions in futures and options)","page_number":224,"box":{"x":117,"y":614,"width":750,"height":12}},{"id":"41dc6ea9-5e18-49b6-a049-19f37bec5e0b","block_type":"box","text":"(“capital gain dividends”) are taxable to shareholders as long-term capital gains, regardless of the","page_number":224,"box":{"x":117,"y":630,"width":727,"height":12}},{"id":"7554458c-2552-4087-8349-d07cbf3967a7","block_type":"box","text":"length of time the shareholder has owned Fund shares. Distributions paid by a Fund that are reported","page_number":224,"box":{"x":117,"y":645,"width":758,"height":12}},{"id":"9619a499-d567-41af-990a-7c755d47f31b","block_type":"box","text":"as exempt-interest dividends will not be subject to regular U.S. federal income tax. Certain dividend","page_number":224,"box":{"x":116,"y":661,"width":737,"height":12}},{"id":"fd8e23f7-1ad0-4aab-abbd-9d9e4872754f","block_type":"box","text":"income and long-term capital gains are eligible for taxation at a reduced rate that applies to","page_number":224,"box":{"x":117,"y":676,"width":675,"height":12}},{"id":"cccb5c23-c140-43b8-acac-013b2e613cfb","block_type":"box","text":"non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":224,"box":{"x":117,"y":692,"width":744,"height":12}},{"id":"8d338669-453c-4093-804b-98b16015f3a2","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate","page_number":224,"box":{"x":116,"y":707,"width":693,"height":12}},{"id":"7cf6b69a-f480-4ee8-96eb-a1f79500e20d","block_type":"box","text":"shareholder may be taxable to such shareholder at long-term capital gain rates provided the","page_number":224,"box":{"x":116,"y":723,"width":683,"height":12}},{"id":"ba1cbe8a-4d50-493a-9c5e-4b2ff4b8435d","block_type":"box","text":"shareholder has held the shares on which the dividend was paid for at least 61 days during the","page_number":224,"box":{"x":116,"y":738,"width":704,"height":12}},{"id":"5b9814eb-c1d4-461c-ad70-a048136192d7","block_type":"box","text":"121-day period that begins on the date that is 60 days before the date on which the shares become","page_number":224,"box":{"x":118,"y":754,"width":736,"height":12}},{"id":"ed295083-7d1a-41b4-ac36-83e29e14903a","block_type":"box","text":"ex-dividend with respect to such dividend (or, in the case of certain accumulated dividends with respect","page_number":224,"box":{"x":116,"y":769,"width":767,"height":12}},{"id":"adb167d0-8b8e-48bf-b714-2d671239c1c9","block_type":"box","text":"to preferred stocks, the shareholder has held the shares on which the dividend was paid for at least","page_number":224,"box":{"x":116,"y":785,"width":738,"height":12}},{"id":"2e09bc83-56ad-483e-bb2c-d79092d94d31","block_type":"box","text":"91 days during the 181-day period that begins on the date that is 90 days before the date on which the","page_number":224,"box":{"x":116,"y":800,"width":761,"height":12}},{"id":"09babf88-f4fa-4645-8474-c48c7626fc23","block_type":"box","text":"shares become ex-dividend with respect to such dividend). However, to the extent a Fund’s","page_number":224,"box":{"x":116,"y":816,"width":678,"height":12}},{"id":"f9a99967-5386-4845-be64-b0b1c06a01a2","block_type":"box","text":"distributions are derived from income on debt securities, certain types of preferred stock treated as","page_number":224,"box":{"x":116,"y":831,"width":737,"height":12}},{"id":"b78b178e-40ca-4ef6-8c49-0ab3f041488c","block_type":"box","text":"debt for U.S. federal income tax purposes and short-term capital gains, such distributions will not","page_number":224,"box":{"x":116,"y":847,"width":723,"height":12}},{"id":"7043aee2-0416-4534-8348-227c7474ddf4","block_type":"box","text":"constitute “qualified dividend income.” In addition, distributions that are derived from securities lending","page_number":224,"box":{"x":116,"y":862,"width":762,"height":12}},{"id":"569ffa7c-76de-4be7-b902-1dd76ddfd005","block_type":"box","text":"income, such as substitute dividend payments, will not constitute “qualified dividend income.”","page_number":224,"box":{"x":117,"y":878,"width":694,"height":12}},{"id":"9262042d-c853-4bf1-b4e8-54972ea061a5","block_type":"box","text":"II-165","page_number":224,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"78f2fbe1-a645-4a0d-870a-ff0652dd91ff","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":224,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9a4e5fd0-1288-4538-b356-2e23e113b512","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and","page_number":225,"box":{"x":116,"y":87,"width":757,"height":12}},{"id":"8f964b68-a8c1-4fed-a9eb-5cce09ca10a5","block_type":"box","text":"redemption proceeds) of certain individuals, trusts and estates.","page_number":225,"box":{"x":117,"y":102,"width":471,"height":13}},{"id":"9ae81ff0-15a9-4abe-92b1-b9c5b9d5e834","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net short-term capital losses)","page_number":225,"box":{"x":116,"y":134,"width":759,"height":12}},{"id":"1275bd29-a985-4bc0-b1bd-f86e214af1d4","block_type":"box","text":"is not subject to the 90% distribution requirement for taxation as a regulated investment company,","page_number":225,"box":{"x":117,"y":149,"width":731,"height":12}},{"id":"ed86fa5d-0360-4037-a25a-6a3dc057c13b","block_type":"box","text":"described above. If a Fund retains net capital gain, it is subject to tax on that gain, and may designate","page_number":225,"box":{"x":116,"y":165,"width":760,"height":12}},{"id":"a03ee535-cadc-40e8-842e-83dd25739896","block_type":"box","text":"the retained amount as undistributed capital gain in a written statement furnished to its shareholders,","page_number":225,"box":{"x":116,"y":180,"width":753,"height":12}},{"id":"5784fa50-4a3a-4193-95c2-75b355df7010","block_type":"box","text":"who will be required to include in income, as long-term capital gain, their proportionate shares of such","page_number":225,"box":{"x":116,"y":196,"width":759,"height":12}},{"id":"2afc00ea-3998-4aa9-b2be-ceb467181f66","block_type":"box","text":"undistributed net capital gain, will be deemed to have paid and may claim as a credit against their U.S.","page_number":225,"box":{"x":117,"y":211,"width":765,"height":12}},{"id":"4fbefe9c-1d2f-4043-a43e-2b97370418ec","block_type":"box","text":"federal income tax liability (and as a refund to the extent it exceeds that liability) their proportionate","page_number":225,"box":{"x":116,"y":227,"width":737,"height":12}},{"id":"4ece2dd6-228f-480b-86ed-e2e4bff12cb2","block_type":"box","text":"shares of the tax paid by the Fund on that gain, and shall increase the tax basis of their shares in the","page_number":225,"box":{"x":116,"y":242,"width":753,"height":12}},{"id":"509f3585-bb2e-4604-8219-2cc569e3ce48","block_type":"box","text":"Fund by the excess of the amount included in income over the amount allowed as a credit against their","page_number":225,"box":{"x":117,"y":258,"width":768,"height":12}},{"id":"f31cbb73-fb32-4a60-ad31-c1d8e49b51ea","block_type":"box","text":"taxes.","page_number":225,"box":{"x":116,"y":273,"width":49,"height":10}},{"id":"2f636a17-8233-4642-9950-5d0352c5bdd5","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the","page_number":225,"box":{"x":117,"y":304,"width":745,"height":12}},{"id":"367567a5-bb78-42d1-b86e-42e5868239fc","block_type":"box","text":"adjusted tax basis of a holder’s shares and after such adjusted tax basis is reduced to zero, will","page_number":225,"box":{"x":116,"y":320,"width":713,"height":12}},{"id":"4bd9639d-e0d8-47a0-bc45-28305f875d76","block_type":"box","text":"constitute capital gains to such holder (assuming the shares are held as a capital asset). Distributions","page_number":225,"box":{"x":116,"y":335,"width":759,"height":12}},{"id":"d1049862-cc07-485c-9395-4a3924c1b762","block_type":"box","text":"in excess of a Fund’s minimum distribution requirements (or taxable income) but not in excess of a","page_number":225,"box":{"x":117,"y":351,"width":736,"height":12}},{"id":"74c76550-e7e8-4910-a958-2adf2bacb987","block_type":"box","text":"Fund’s earnings and profits will be taxable to shareholders and will not constitute nontaxable returns of","page_number":225,"box":{"x":117,"y":366,"width":766,"height":12}},{"id":"ee0ffded-e536-4430-8e8a-859f16a5c592","block_type":"box","text":"capital. In the case of a Fund with a non-calendar taxable year, a Fund’s earnings and profits are","page_number":225,"box":{"x":116,"y":382,"width":724,"height":12}},{"id":"b232657b-32e0-4479-b22b-89ce2c527365","block_type":"box","text":"allocated first to distributions made on or before December 31 of the taxable year, and then to","page_number":225,"box":{"x":116,"y":397,"width":702,"height":12}},{"id":"4f1ccd9f-52cc-4de1-9aab-f5d3edac632f","block_type":"box","text":"distributions made after December 31 of the taxable year. Any loss upon the sale or exchange of Fund","page_number":225,"box":{"x":116,"y":413,"width":766,"height":12}},{"id":"7e144924-79b5-4964-8c80-902d645faa30","block_type":"box","text":"shares held for six months or less will be treated as long-term capital loss to the extent of any capital","page_number":225,"box":{"x":116,"y":428,"width":751,"height":12}},{"id":"3ca17773-3c4d-4f5d-b40b-b265c066f62c","block_type":"box","text":"gain dividends received by the shareholder.","page_number":225,"box":{"x":116,"y":444,"width":329,"height":12}},{"id":"e58f2ed0-33bf-42bc-a2e3-8311a9e23b9a","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in","page_number":225,"box":{"x":116,"y":475,"width":755,"height":12}},{"id":"dcc10041-72bb-4ffc-a1c6-2034fb26718a","block_type":"box","text":"additional shares of a Fund. Distributions by a Fund, whether from ordinary income or capital gains,","page_number":225,"box":{"x":116,"y":490,"width":744,"height":12}},{"id":"2423e847-436e-4d25-b0b0-5dda31fc9ed7","block_type":"box","text":"generally will not be eligible for the dividends received deduction allowed to corporations under the","page_number":225,"box":{"x":116,"y":506,"width":736,"height":12}},{"id":"51fccde1-6499-4f79-b905-1cc90544fdfc","block_type":"box","text":"Code. If a Fund pays a dividend in January that was declared in the previous October, November or","page_number":225,"box":{"x":117,"y":521,"width":745,"height":12}},{"id":"477e678d-0a29-4c80-ae03-75c5589850a8","block_type":"box","text":"December to shareholders of record on a specified date in one of such months, then such dividend","page_number":225,"box":{"x":117,"y":537,"width":738,"height":12}},{"id":"192dcbf2-cf41-40c8-b75d-4e56594fb756","block_type":"box","text":"will be treated for tax purposes as being paid by the Fund and received by its shareholders on","page_number":225,"box":{"x":116,"y":552,"width":702,"height":12}},{"id":"aad484b2-e4c8-4e80-910e-fa667aeb0dcf","block_type":"box","text":"December 31 of the year in which the dividend was declared. In the case of a Fund with a","page_number":225,"box":{"x":117,"y":568,"width":670,"height":12}},{"id":"d019eb3b-fd1c-40bb-a40b-a10d4cdec793","block_type":"box","text":"non-calendar taxable year, if the Fund reports more capital gain dividends than it earns in such taxable","page_number":225,"box":{"x":117,"y":583,"width":767,"height":12}},{"id":"41d99c0f-8fee-4098-8c29-6023ea250424","block_type":"box","text":"year, then the Fund will reduce the amounts reported as capital gains. Where possible, such reduction","page_number":225,"box":{"x":116,"y":599,"width":764,"height":12}},{"id":"92f958f0-99c4-474f-8fc6-826a8f6c2bd6","block_type":"box","text":"will first be allocated to dividends made after December 31 of such taxable year. A Fund may elect to","page_number":225,"box":{"x":116,"y":614,"width":755,"height":12}},{"id":"ac707955-40c2-436a-aec2-31ae0c63a6d9","block_type":"box","text":"defer recognizing, until the following taxable year, certain net capital losses arising after October 31 of","page_number":225,"box":{"x":116,"y":630,"width":761,"height":12}},{"id":"0cd00352-9a50-43db-a84b-29b42f29b407","block_type":"box","text":"the current taxable year, and certain net ordinary losses arising after October 31 and/or December 31","page_number":225,"box":{"x":116,"y":645,"width":759,"height":12}},{"id":"7238a9f7-3b53-4017-8601-0717db2eca8d","block_type":"box","text":"of the current taxable year. This may have the effect of increasing the amount of dividends otherwise","page_number":225,"box":{"x":116,"y":661,"width":748,"height":12}},{"id":"1f363fec-0974-405a-b7c0-4946ce72f730","block_type":"box","text":"includible in the shareholder’s income with respect to the current taxable year.","page_number":225,"box":{"x":117,"y":676,"width":577,"height":12}},{"id":"f2a183c2-a6a4-4803-879c-d0dbbbf78f6f","block_type":"box","text":"No gain or loss will be recognized by Investor C shareholders on the conversion to Investor A Shares.","page_number":225,"box":{"x":117,"y":707,"width":753,"height":12}},{"id":"25cf2b6b-ef9b-41a8-80b2-b34fb2083460","block_type":"box","text":"A shareholder’s tax basis in the Investor A Shares acquired upon conversion will be the same as the","page_number":225,"box":{"x":116,"y":723,"width":745,"height":12}},{"id":"a47997ec-eecd-4e20-ae95-bd0de89cc4fa","block_type":"box","text":"shareholder’s tax basis in the converted Investor C Shares and the holding period of the acquired","page_number":225,"box":{"x":116,"y":738,"width":722,"height":12}},{"id":"473d6a4b-ac02-497a-b6a9-675eb9890208","block_type":"box","text":"Investor A Shares will include the holding period for the converted Investor C Shares.","page_number":225,"box":{"x":117,"y":754,"width":631,"height":12}},{"id":"e9211fa5-5d48-45e8-8b55-8904ba1d8e72","block_type":"box","text":"If a shareholder of a Fund exercises an exchange privilege within 90 days of acquiring the shares of a","page_number":225,"box":{"x":117,"y":785,"width":754,"height":12}},{"id":"513f751f-c0ac-4430-9d94-48578ee6b15d","block_type":"box","text":"Fund, but on or before January 31 of the following year, then the loss that the shareholder recognizes","page_number":225,"box":{"x":117,"y":800,"width":752,"height":12}},{"id":"cbdece04-f3e0-4dd3-a6aa-6a3f335aec89","block_type":"box","text":"on the exchange will be reduced (or the gain increased) to the extent any sales charge paid on the","page_number":225,"box":{"x":116,"y":816,"width":731,"height":12}},{"id":"b40fe374-97b3-481d-b6ec-29901521a96d","block_type":"box","text":"exchanged shares reduces any sales charge the shareholder would have owed upon the purchase of","page_number":225,"box":{"x":116,"y":831,"width":757,"height":12}},{"id":"718b9c2c-c312-44c9-9f7e-c798cfc818c6","block_type":"box","text":"the new shares in the absence of the exchange privilege. Instead, such sales charge will be treated as","page_number":225,"box":{"x":116,"y":847,"width":765,"height":12}},{"id":"51233566-f402-4afc-a550-5216b7843f23","block_type":"box","text":"an amount paid for the new shares.","page_number":225,"box":{"x":116,"y":862,"width":268,"height":12}},{"id":"69b4109e-bcb4-45ac-82e3-ddfddf5db8db","block_type":"box","text":"II-166","page_number":225,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"a2532a5e-e7fe-4ec1-be6c-0add13345d72","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":225,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ceff50d3-c60d-4629-9271-d8bffaf3dbd9","block_type":"box","text":"A loss realized on a sale or exchange of shares of a Fund will be disallowed if other substantially","page_number":226,"box":{"x":116,"y":87,"width":722,"height":12}},{"id":"8db4d92d-08df-4d39-8188-8f0b46ae67a6","block_type":"box","text":"identical shares are acquired (whether through the automatic reinvestment of dividends or otherwise)","page_number":226,"box":{"x":117,"y":102,"width":754,"height":13}},{"id":"86e5b45c-e90a-4713-9354-c3684cf95048","block_type":"box","text":"within a 61-day period beginning 30 days before and ending 30 days after the date on which the","page_number":226,"box":{"x":116,"y":118,"width":717,"height":12}},{"id":"ed460c88-51e0-45f6-af3a-651893f0ee8c","block_type":"box","text":"shares are sold or exchanged. In such case, the basis of the shares acquired will be adjusted to reflect","page_number":226,"box":{"x":116,"y":134,"width":767,"height":12}},{"id":"f4223b70-e7c9-4314-80c2-fa4de0760616","block_type":"box","text":"the disallowed loss.","page_number":226,"box":{"x":116,"y":149,"width":150,"height":10}},{"id":"5d4eb2ca-4efe-405a-9d9a-83ce195cdecc","block_type":"box","text":"A Fund is also generally required by law to report to each shareholder and to the IRS cost basis","page_number":226,"box":{"x":116,"y":176,"width":716,"height":12}},{"id":"2ddae640-f017-47a4-a2d9-b937cb9ee0d3","block_type":"box","text":"information for shares of the Fund acquired on or after January 1, 2012, and sold or redeemed after","page_number":226,"box":{"x":117,"y":192,"width":744,"height":12}},{"id":"5d48c628-e8c2-4587-a587-7f5d40606b1b","block_type":"box","text":"that date. This information includes the adjusted cost basis of the shares, the gross proceeds from","page_number":226,"box":{"x":116,"y":207,"width":734,"height":12}},{"id":"61f6e1e5-9899-46b4-9253-b5c19112a701","block_type":"box","text":"disposition, and whether the gain or loss is long-term or short-term. The adjusted cost basis of shares","page_number":226,"box":{"x":116,"y":223,"width":759,"height":12}},{"id":"9af327c7-bc69-4b9b-b173-cc56af746a12","block_type":"box","text":"will be based on the default cost basis reporting method selected by the Fund, unless a shareholder,","page_number":226,"box":{"x":116,"y":238,"width":751,"height":12}},{"id":"b4f79676-0a63-42ca-8051-caa568d7776c","block_type":"box","text":"before the sale or redemption, informs the Fund that it has selected a different IRS-accepted method","page_number":226,"box":{"x":117,"y":254,"width":751,"height":12}},{"id":"0e292bec-9e80-4723-8f8f-f45d8be40617","block_type":"box","text":"offered by the Fund. These requirements, however, will not apply for investments through an IRA or","page_number":226,"box":{"x":116,"y":269,"width":745,"height":12}},{"id":"fa4084ab-56a6-468e-95f9-45e0e298c45d","block_type":"box","text":"other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":226,"box":{"x":116,"y":285,"width":744,"height":12}},{"id":"54b2cf36-8f17-4852-bfbd-79bae2121360","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these new cost","page_number":226,"box":{"x":116,"y":300,"width":734,"height":11}},{"id":"4c4f2539-42e8-4a14-a5a7-656e4da36592","block_type":"box","text":"basis reporting requirements apply to them. For shares of a Fund acquired before January 1, 2012,","page_number":226,"box":{"x":117,"y":316,"width":740,"height":12}},{"id":"974a77e8-3bcf-4305-a8cd-ec6e76e439c9","block_type":"box","text":"these new requirements will not apply, but the Fund will continue to report to the IRS the gross","page_number":226,"box":{"x":116,"y":331,"width":706,"height":12}},{"id":"b5c81a71-a713-4849-b78f-cb3414ebf3e1","block_type":"box","text":"proceeds received by a shareholder from the sale or redemption of such shares.","page_number":226,"box":{"x":117,"y":347,"width":600,"height":12}},{"id":"95288e95-41d1-4980-b8d6-820e6dc466c0","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts","page_number":226,"box":{"x":117,"y":374,"width":756,"height":12}},{"id":"469cb1dd-3f1d-479d-beaf-a3b0eaaa3ba8","block_type":"box","text":"and swap agreements. The U.S. federal income tax treatment of a derivative contract may not be as","page_number":226,"box":{"x":116,"y":389,"width":749,"height":12}},{"id":"8a9be2fd-2df2-447d-acbd-b8e047d6540d","block_type":"box","text":"favorable as a direct investment in the underlying security and may adversely affect the timing,","page_number":226,"box":{"x":116,"y":405,"width":707,"height":12}},{"id":"fd11ac91-06e4-4235-bba5-5c91e10a7aad","block_type":"box","text":"character and amount of income the Fund realizes from its investments. As a result, a larger portion of","page_number":226,"box":{"x":116,"y":420,"width":764,"height":12}},{"id":"8fa94e8e-3923-41be-b7fe-388b8115673d","block_type":"box","text":"the Fund’s distributions may be treated as ordinary income rather than capital gains. In addition,","page_number":226,"box":{"x":116,"y":436,"width":717,"height":12}},{"id":"135a5549-b510-4561-9f31-ab7d5d4eafdc","block_type":"box","text":"section 1256 contracts held by a Fund at the end of each taxable year (and, for purposes of the 4%","page_number":226,"box":{"x":116,"y":451,"width":742,"height":12}},{"id":"e28c5cb5-babe-4221-a5a0-1ee064344b7a","block_type":"box","text":"excise tax, certain other dates as prescribed under the Code) are generally “marked-to-market,” such","page_number":226,"box":{"x":116,"y":467,"width":756,"height":12}},{"id":"63505f19-df89-46a8-acda-9025ac287bce","block_type":"box","text":"that unrealized gains or losses are treated as though they were realized (with such gain or loss being","page_number":226,"box":{"x":116,"y":482,"width":755,"height":12}},{"id":"e680c70f-6cb2-48d5-a6e0-3b1ac215569c","block_type":"box","text":"considered 60% long-term and 40% short-term capital gain or loss), which may increase the amount","page_number":226,"box":{"x":116,"y":498,"width":749,"height":12}},{"id":"4be7c0a7-876a-4b4c-947f-4dfeaf38c13e","block_type":"box","text":"that must be distributed to meet distribution requirements and avoid the excise tax. In addition, the tax","page_number":226,"box":{"x":116,"y":514,"width":762,"height":11}},{"id":"a486d613-7d07-4928-8a40-70ae7f8ff505","block_type":"box","text":"treatment of certain derivative contracts, such as swap agreements, is unsettled and may be subject to","page_number":226,"box":{"x":116,"y":529,"width":768,"height":12}},{"id":"b494be4e-c743-49f8-a873-9a659c849b52","block_type":"box","text":"future legislation, regulation or administrative pronouncements issued by the IRS. If such future","page_number":226,"box":{"x":116,"y":544,"width":712,"height":12}},{"id":"025de005-ce7e-4e3b-bb86-0490d73df031","block_type":"box","text":"guidance limits the Fund’s ability to use derivatives, the Fund may have to find other ways of achieving","page_number":226,"box":{"x":116,"y":560,"width":767,"height":12}},{"id":"e5f72564-8f43-41fe-af19-908bf5edbb84","block_type":"box","text":"its investment objectives.","page_number":226,"box":{"x":117,"y":576,"width":191,"height":11}},{"id":"4143992e-3b1d-4dea-8f74-ccaa7965d5a1","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional","page_number":226,"box":{"x":117,"y":602,"width":716,"height":13}},{"id":"9fcb68c0-d787-4f67-8dbd-6ef30fa17887","block_type":"box","text":"principal contracts rather than as section 1256 contracts. This can affect the type of income earned by","page_number":226,"box":{"x":117,"y":618,"width":762,"height":12}},{"id":"1510d28f-7297-47ea-b9ec-7982ed45ed52","block_type":"box","text":"such swap agreements since all the income on a notional principal contract may be ordinary income,","page_number":226,"box":{"x":116,"y":634,"width":752,"height":12}},{"id":"a2764516-7f7a-4b66-ba1e-854773e19895","block_type":"box","text":"whereas 40% of the gain on a section 1256 contract is treated as short-term capital gain taxed at","page_number":226,"box":{"x":116,"y":649,"width":724,"height":12}},{"id":"e03f0f58-b051-4225-b93e-a39ec2a5e027","block_type":"box","text":"ordinary rates and 60% is treated as long-term capital gain taxed at more favorable rates when","page_number":226,"box":{"x":116,"y":665,"width":703,"height":12}},{"id":"a790cb46-ff82-4165-98bc-9be4b594499e","block_type":"box","text":"distributed to shareholders. The rest is long-term capital gain, which may be taxable at more favorable","page_number":226,"box":{"x":116,"y":680,"width":758,"height":12}},{"id":"2f4dfb39-be77-4fc9-a4b7-c728dc9ced7b","block_type":"box","text":"rates than ordinary income. Proposed regulations interpret what types of swap agreements are to be","page_number":226,"box":{"x":117,"y":696,"width":745,"height":12}},{"id":"33430066-2e66-4a72-a9e7-a63b4d0c5412","block_type":"box","text":"treated as notional principal contracts rather than as section 1256 contracts. When finalized, these","page_number":226,"box":{"x":116,"y":711,"width":730,"height":12}},{"id":"755a0e81-7779-439a-a0c5-865498b6f096","block_type":"box","text":"regulations could result in the Fund having to treat more of its income on swap agreements and more","page_number":226,"box":{"x":117,"y":727,"width":751,"height":12}},{"id":"ed8490e8-beeb-419c-b908-a666635c5d3b","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":226,"box":{"x":116,"y":742,"width":718,"height":12}},{"id":"77999654-d600-486f-8294-88e4773d325f","block_type":"box","text":"Certain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are","page_number":226,"box":{"x":117,"y":769,"width":714,"height":12}},{"id":"332418c1-1dd2-4761-a238-4afdfb9a622d","block_type":"box","text":"issued at a discount or provide for deferred interest. Even though a Fund receives no actual interest","page_number":226,"box":{"x":117,"y":785,"width":740,"height":12}},{"id":"d848d5b3-7134-4975-ad2d-5f6dbf2a9b80","block_type":"box","text":"payments on these securities, it will be deemed to receive income equal, generally, to a portion of the","page_number":226,"box":{"x":117,"y":800,"width":751,"height":12}},{"id":"a3ee68ee-4dd8-428b-8228-bae6c9d00cd1","block_type":"box","text":"excess of the stated redemption price of the securities over their issue price (“original issue discount”)","page_number":226,"box":{"x":116,"y":816,"width":754,"height":12}},{"id":"d0bf88c1-18e3-404c-899f-968546418f3e","block_type":"box","text":"each year that the securities are held. Since the original issue discount income earned by a Fund in a","page_number":226,"box":{"x":116,"y":831,"width":757,"height":12}},{"id":"0e5348c8-dfa0-45f5-8872-e401d8c00754","block_type":"box","text":"taxable year may not be represented by cash income, the Fund may have to dispose of securities,","page_number":226,"box":{"x":116,"y":847,"width":734,"height":12}},{"id":"faefe00f-0a00-468e-8f20-2004b84591b6","block_type":"box","text":"which it might otherwise have continued to hold, or borrow to generate cash in order to satisfy its","page_number":226,"box":{"x":116,"y":862,"width":722,"height":12}},{"id":"25b8ba82-c14c-4c03-bc8d-20d0f0974c74","block_type":"box","text":"distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign currency","page_number":226,"box":{"x":116,"y":878,"width":737,"height":12}},{"id":"b65bcb86-5571-4061-b3b9-b7fe186c0c46","block_type":"box","text":"II-167","page_number":226,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"8621be98-10b0-4ca2-9bb4-53d1eaf93f03","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":226,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"69c014cb-d9b9-4252-9c80-64753854bbd6","block_type":"box","text":"denominated or referenced debt securities, certain asset-backed securities and contingent payment","page_number":227,"box":{"x":116,"y":87,"width":744,"height":12}},{"id":"ef8b537b-a487-4b4c-94f8-5921dee9269c","block_type":"box","text":"and inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of","page_number":227,"box":{"x":116,"y":102,"width":720,"height":13}},{"id":"f4f5e47b-15bd-4211-ac96-b30a063c3d33","block_type":"box","text":"income, including the recognition of taxable income in excess of cash generated by such investments.","page_number":227,"box":{"x":117,"y":118,"width":761,"height":12}},{"id":"85d09f62-2098-425c-b765-3f6b32dcf97e","block_type":"box","text":"Any transaction by the Fund in foreign currencies, foreign currency-denominated debt obligations or","page_number":227,"box":{"x":116,"y":134,"width":745,"height":12}},{"id":"058ef77e-6ae4-46bb-abd1-8a65110a9c28","block_type":"box","text":"certain foreign currency options, futures contracts or forward contracts (or similar instruments) may","page_number":227,"box":{"x":116,"y":149,"width":739,"height":12}},{"id":"22c76123-3c72-4b67-bf1d-07609821945f","block_type":"box","text":"give rise to ordinary income or loss to the extent such income or loss results from fluctuations in the","page_number":227,"box":{"x":116,"y":165,"width":744,"height":12}},{"id":"fe0438fb-eb81-4525-b16d-b9c0f708cd5d","block_type":"box","text":"value of the foreign currency concerned. Any such net gains could require a larger dividend toward the","page_number":227,"box":{"x":116,"y":180,"width":766,"height":12}},{"id":"1b6224bb-f0cb-4b05-a41d-977775e1d3ee","block_type":"box","text":"end of the calendar year. Any such net losses will generally reduce and potentially require the","page_number":227,"box":{"x":116,"y":196,"width":700,"height":12}},{"id":"8c04a8e2-608f-41a5-8228-1750b549b51c","block_type":"box","text":"recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":227,"box":{"x":117,"y":211,"width":698,"height":12}},{"id":"a111cd35-8d62-4d45-ad3c-2afa8945028d","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as","page_number":227,"box":{"x":116,"y":227,"width":753,"height":9}},{"id":"ecf7627b-1aba-4edc-b91f-641f2c8b4707","block_type":"box","text":"ordinary income. Any net ordinary losses so created cannot be carried forward by the Fund to offset","page_number":227,"box":{"x":116,"y":242,"width":746,"height":12}},{"id":"329012b1-d565-4114-a1cb-f23708107b20","block_type":"box","text":"income or gains earned in subsequent taxable years.","page_number":227,"box":{"x":117,"y":258,"width":398,"height":12}},{"id":"7e1fbeb4-47e3-4cef-8862-6b29fcfdfd71","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other","page_number":227,"box":{"x":116,"y":289,"width":749,"height":12}},{"id":"e0475dc0-65cd-4125-8683-cf55283e130b","block_type":"box","text":"than pass-through entities to the extent owned by U.S. persons) generally will be subject to a 30% U.S.","page_number":227,"box":{"x":116,"y":304,"width":771,"height":12}},{"id":"255d4352-24d4-449a-a006-54471dbbaaf2","block_type":"box","text":"withholding tax under existing provisions of the Code applicable to foreign individuals and entities","page_number":227,"box":{"x":116,"y":320,"width":726,"height":12}},{"id":"79d8f9bd-3756-4ee9-b99e-6b7af9732f7a","block_type":"box","text":"unless a reduced rate of withholding or a withholding exemption is provided under applicable treaty","page_number":227,"box":{"x":117,"y":335,"width":738,"height":12}},{"id":"d1cc9263-19ea-4097-a534-5e1cd88aef1c","block_type":"box","text":"law. Capital gain dividends paid to shareholders that are nonresident aliens or foreign entities, if and to","page_number":227,"box":{"x":117,"y":351,"width":766,"height":12}},{"id":"2f714a6f-8440-4a43-be53-6ecf5ccb21ca","block_type":"box","text":"the extent properly reported as capital gain dividends, generally will not be subject to a 30%","page_number":227,"box":{"x":116,"y":366,"width":685,"height":12}},{"id":"8e9640a2-153c-4e00-a0ce-474b35552bb9","block_type":"box","text":"withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":227,"box":{"x":116,"y":382,"width":699,"height":12}},{"id":"76eaf42b-53cd-4609-8d79-9346b98cdc07","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original","page_number":227,"box":{"x":116,"y":397,"width":771,"height":12}},{"id":"848299ac-9595-4e29-bc45-0f11562e3568","block_type":"box","text":"issue discount and market discount) and paid to shareholders who are nonresident aliens or foreign","page_number":227,"box":{"x":117,"y":413,"width":743,"height":12}},{"id":"2864ed62-4c7d-4997-8236-d2bf47d1d265","block_type":"box","text":"entities, if and to the extent properly reported as “short-term capital gain dividends” or “interest-related","page_number":227,"box":{"x":116,"y":428,"width":762,"height":12}},{"id":"280a59b2-f19e-4916-880a-6ae6e79c3540","block_type":"box","text":"dividends”, respectively, generally will not be subject to U.S. withholding tax. Where possible, the","page_number":227,"box":{"x":116,"y":444,"width":725,"height":12}},{"id":"d8a07fb0-70c4-405c-a44f-397bb48e7ca1","block_type":"box","text":"Funds intend to report such dividends as interest-related dividends or short-term capital gain dividends.","page_number":227,"box":{"x":117,"y":459,"width":771,"height":12}},{"id":"553bb18b-78e7-4a4a-8f51-ba6a9cb9d063","block_type":"box","text":"However, depending on its circumstances, a Fund may report all, some or none of its potentially","page_number":227,"box":{"x":117,"y":475,"width":716,"height":12}},{"id":"eeb1ed7d-ae4a-4ae7-bb09-e51f0da91f59","block_type":"box","text":"eligible dividends as interest-related or as short-term capital gain dividends, and/or treat such","page_number":227,"box":{"x":116,"y":490,"width":697,"height":12}},{"id":"b5dca046-a93d-4f15-bbb8-096ad889c717","block_type":"box","text":"dividends, in whole or in part, as ineligible for this exemption from withholding. In order to qualify for","page_number":227,"box":{"x":116,"y":506,"width":743,"height":12}},{"id":"3f4fcdca-2bf2-408d-b7bf-46263da04ee8","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification","page_number":227,"box":{"x":116,"y":521,"width":712,"height":12}},{"id":"88e53be0-c5bc-4777-8ffe-f1a6cbb540a6","block_type":"box","text":"requirements relating to its foreign status (including, in general, furnishing an IRS Form W-8BEN, IRS","page_number":227,"box":{"x":117,"y":537,"width":757,"height":12}},{"id":"b889c986-6c07-4452-ab2c-d28f4b2176fa","block_type":"box","text":"Form W-8BEN-E or substitute Form). In the case of shares held through an intermediary, the","page_number":227,"box":{"x":117,"y":552,"width":693,"height":12}},{"id":"3e4f88d9-5f2f-4bb2-9f67-b5963db695d9","block_type":"box","text":"intermediary may withhold even if the Fund reports the payment as an interest-related or short-term","page_number":227,"box":{"x":117,"y":568,"width":743,"height":12}},{"id":"398bbc3e-28ea-434e-ab6c-41a99dac9790","block_type":"box","text":"capital gain dividend. Foreign shareholders should contact their intermediaries with respect to the","page_number":227,"box":{"x":116,"y":583,"width":727,"height":12}},{"id":"ca911817-f934-458f-a317-afd0bd02ee9e","block_type":"box","text":"application of these rules to their accounts. It is not possible to predict what portion, if any, of a Fund’s","page_number":227,"box":{"x":116,"y":599,"width":762,"height":12}},{"id":"b4b13ae3-8166-4700-ba69-7764093b0d62","block_type":"box","text":"distributions will be reported as interest-related dividends or short-term capital gain dividends under","page_number":227,"box":{"x":116,"y":614,"width":742,"height":12}},{"id":"d5811b72-d044-4a5a-8f82-4d903d0dd74a","block_type":"box","text":"these rules.","page_number":227,"box":{"x":116,"y":630,"width":91,"height":9}},{"id":"0890c877-cb00-491e-86ce-ed2c1baaaa6d","block_type":"box","text":"Distributions to certain foreign shareholders by a Fund at least 50% of the assets of which are “U.S.","page_number":227,"box":{"x":117,"y":661,"width":737,"height":12}},{"id":"89733664-6b60-4c97-b863-a9344280964d","block_type":"box","text":"real property interests” (as defined in the Code and Treasury regulations) at any time during the five","page_number":227,"box":{"x":117,"y":676,"width":745,"height":12}},{"id":"d6a49b35-d96b-44cd-aeb1-adef2f8247a8","block_type":"box","text":"year period ending on the date of the distributions, to the extent the distributions are attributable to","page_number":227,"box":{"x":116,"y":692,"width":729,"height":12}},{"id":"ed0d328d-4821-4b1f-b930-f40989dac8c1","block_type":"box","text":"gains from sales or exchanges of U.S. real property interests (including shares in certain “U.S. real","page_number":227,"box":{"x":116,"y":707,"width":731,"height":12}},{"id":"1990b911-b9e4-48e9-a79f-05f94f97f796","block_type":"box","text":"property holding corporations” such as certain REITs, although exceptions may apply if any class of","page_number":227,"box":{"x":117,"y":723,"width":739,"height":12}},{"id":"8e8fd86c-47d1-49ac-8611-67f6d6c82552","block_type":"box","text":"stock of such a corporation is regularly traded on an established securities market and the Fund has","page_number":227,"box":{"x":116,"y":738,"width":743,"height":12}},{"id":"a7eaaf21-11e4-460c-b938-6b8ee23657c7","block_type":"box","text":"held no more than 5% of such class of stock at all times during the five-year period ending on the date","page_number":227,"box":{"x":117,"y":754,"width":757,"height":12}},{"id":"2e842993-27bb-4353-96d1-34d58417caef","block_type":"box","text":"of the distributions), generally must be treated by such foreign shareholders as income effectively","page_number":227,"box":{"x":116,"y":769,"width":723,"height":12}},{"id":"d233b24e-5f60-4848-aec5-fac5188647f2","block_type":"box","text":"connected to a trade or business within the United States, which is generally subject to tax at the","page_number":227,"box":{"x":116,"y":785,"width":718,"height":12}},{"id":"7dc5c4f8-51ef-4a4d-8356-25aa5434d235","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that","page_number":227,"box":{"x":116,"y":800,"width":743,"height":12}},{"id":"8cf1d2e1-ae66-4460-943a-e6db4aa24f30","block_type":"box","text":"held no more than 5% of any class of stock of the Fund at all times during the previous one-year period","page_number":227,"box":{"x":117,"y":816,"width":764,"height":12}},{"id":"9de7df53-9a92-4748-9fad-b7a4c5ad42c6","block_type":"box","text":"ending on the date of the distributions. Such distributions will be subject to U.S. income and","page_number":227,"box":{"x":116,"y":831,"width":685,"height":12}},{"id":"389fe661-fd52-4f7e-9a74-b86f320318ca","block_type":"box","text":"withholding tax and generally will require a foreign shareholder to file a U.S. federal income tax return.","page_number":227,"box":{"x":116,"y":847,"width":762,"height":12}},{"id":"56623e4b-3877-47ce-a17e-102dbf97edd7","block_type":"box","text":"If the foreign shareholder held no more than 5% of any class of stock of the Fund at all times during the","page_number":227,"box":{"x":117,"y":862,"width":771,"height":12}},{"id":"31ca29c6-a8be-4d1c-ac42-3ca2ca13182d","block_type":"box","text":"previous one-year period ending on the date of the distributions, the distributions will be taxable as","page_number":227,"box":{"x":117,"y":878,"width":735,"height":12}},{"id":"b36da805-e739-470c-9230-c887ea9d62c3","block_type":"box","text":"II-168","page_number":227,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"d7fe3ced-90e9-47fe-bb55-bd99fe4a88d1","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":227,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"aa0a704e-c06a-4882-88be-92e7e3e789a9","block_type":"box","text":"ordinary dividends and subject to withholding at a 30% or lower treaty rate. In addition, sales or","page_number":228,"box":{"x":116,"y":87,"width":711,"height":12}},{"id":"19522c23-a6ff-4b5f-914f-75af5881d06e","block_type":"box","text":"redemptions of shares held by certain foreign shareholders in such a Fund generally will be subject to","page_number":228,"box":{"x":117,"y":102,"width":758,"height":13}},{"id":"ecd6279a-4a19-4a7c-b374-b7774d94b09a","block_type":"box","text":"U.S. income and withholding tax and generally will require the foreign shareholder to file a U.S. federal","page_number":228,"box":{"x":117,"y":118,"width":765,"height":12}},{"id":"a6a716b1-2750-4659-bbd5-c812fdc2c88f","block_type":"box","text":"income tax return, although exceptions may apply if more than 50% of the value of the Fund’s shares","page_number":228,"box":{"x":117,"y":134,"width":755,"height":12}},{"id":"25c1888f-f46d-4e50-b041-ff4795eb2b37","block_type":"box","text":"are held by U.S. shareholders or the foreign shareholder selling or redeeming the shares has held no","page_number":228,"box":{"x":116,"y":149,"width":756,"height":12}},{"id":"d00dd773-daa2-46ca-91d0-78e868ad6f0d","block_type":"box","text":"more than 5% of any class of stock of the Fund at all times during the five-year period ending on the","page_number":228,"box":{"x":117,"y":165,"width":747,"height":12}},{"id":"e05f7aed-a11b-4c22-b666-11bc063fa2a6","block_type":"box","text":"date of the sale or redemption.","page_number":228,"box":{"x":116,"y":180,"width":233,"height":12}},{"id":"a26c52ed-5d01-44e9-ac62-3e752e17588e","block_type":"box","text":"Provided that more than 50% of the value of a Fund’s stock is held by U.S. shareholders, redemptions","page_number":228,"box":{"x":117,"y":211,"width":762,"height":12}},{"id":"09c9c789-d8a9-401b-a966-a2f41371eb52","block_type":"box","text":"and other distributions made in the form of U.S. real property interests (including shares in certain","page_number":228,"box":{"x":116,"y":227,"width":730,"height":12}},{"id":"a73e3eab-0241-406c-ba09-507db9f3cf31","block_type":"box","text":"“U.S. real property holding corporations”, although exceptions may apply if any class of stock of such a","page_number":228,"box":{"x":116,"y":242,"width":768,"height":12}},{"id":"180764f9-a04b-46da-9d2f-1e153dc0b532","block_type":"box","text":"corporation is regularly traded on an established securities market and the Fund has held no more than","page_number":228,"box":{"x":116,"y":258,"width":772,"height":12}},{"id":"58964658-f6f6-416d-99a7-2b28b281a67e","block_type":"box","text":"5% of such class of stock at all times during the five-year period ending on the date of the distribution)","page_number":228,"box":{"x":116,"y":273,"width":762,"height":12}},{"id":"9cee97ac-1709-4e34-aed6-8c1afb7ffa4c","block_type":"box","text":"generally will cause the Fund to recognize a portion of any unrecognized gain in the U.S. real property","page_number":228,"box":{"x":116,"y":289,"width":763,"height":12}},{"id":"7e61a5c0-483f-4c6e-9e93-f1108c9ae7d4","block_type":"box","text":"interests equal to the product of (i) the excess of fair market value of such U.S. real property interests","page_number":228,"box":{"x":117,"y":304,"width":756,"height":12}},{"id":"6f3151d7-056a-4357-95d4-4fdab056df7d","block_type":"box","text":"over the Fund’s adjusted bases in such interests and (ii) the greatest foreign ownership percentage of","page_number":228,"box":{"x":116,"y":320,"width":759,"height":12}},{"id":"d4c3dd1c-f4b8-46d6-9766-b1a87cd55c2b","block_type":"box","text":"the Fund during the five-year period ending on the date of distribution.","page_number":228,"box":{"x":116,"y":335,"width":525,"height":12}},{"id":"0af2f878-347b-4b6e-92d9-5eaec97a8d47","block_type":"box","text":"A foreign shareholder may also be subject to certain “wash sale” rules to prevent the avoidance of the","page_number":228,"box":{"x":116,"y":366,"width":760,"height":12}},{"id":"53130570-1c5c-4433-a190-93d0439712c3","block_type":"box","text":"tax filing and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":228,"box":{"x":116,"y":382,"width":752,"height":12}},{"id":"b56341ea-733d-4f8a-ac0c-d4de332465f3","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":228,"box":{"x":116,"y":413,"width":762,"height":12}},{"id":"437b1c2e-c100-4913-9a06-711d39883963","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":228,"box":{"x":116,"y":428,"width":598,"height":12}},{"id":"f48dd5d8-4baf-4b8d-8bef-4fe0efd5f61d","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other","page_number":228,"box":{"x":116,"y":459,"width":745,"height":12}},{"id":"57270293-4936-4622-8958-e9d1e156e2db","block_type":"box","text":"income items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other","page_number":228,"box":{"x":117,"y":475,"width":763,"height":12}},{"id":"d42f91a0-ff76-424e-8194-f568e1312b72","block_type":"box","text":"foreign entities. To avoid withholding, foreign financial institutions and investment funds will generally","page_number":228,"box":{"x":116,"y":490,"width":753,"height":12}},{"id":"2f8c4784-7adc-45f2-b2bb-dd95e0acd092","block_type":"box","text":"either need to (a) collect and report to the IRS detailed information identifying their U.S. accounts and","page_number":228,"box":{"x":116,"y":506,"width":758,"height":12}},{"id":"3be3788b-a815-4bd7-a76b-35573a45bf26","block_type":"box","text":"U.S. account holders, comply with due diligence procedures for identifying U.S. accounts and withhold","page_number":228,"box":{"x":117,"y":521,"width":763,"height":12}},{"id":"47370ebe-d9c6-4cdf-a248-8893378852ad","block_type":"box","text":"tax on certain payments made to noncomplying foreign entities and account holders or (b) if an","page_number":228,"box":{"x":116,"y":537,"width":709,"height":12}},{"id":"c2c4ed94-ceec-4e5a-8e40-93cc711bfe45","block_type":"box","text":"intergovernmental agreement is entered into and implementing legislation is adopted, comply with the","page_number":228,"box":{"x":117,"y":552,"width":758,"height":12}},{"id":"84f2e80e-272d-4580-8096-b5cc8055abb1","block_type":"box","text":"agreement and legislation. Other foreign entities will generally either need to provide detailed","page_number":228,"box":{"x":116,"y":568,"width":695,"height":12}},{"id":"a4c68f02-cf75-4687-90a9-77f1cea84653","block_type":"box","text":"information identifying each substantial U.S. owner or certify there are no such owners.","page_number":228,"box":{"x":117,"y":583,"width":650,"height":12}},{"id":"2619c56b-7775-4c2b-9ab7-fc705153bad8","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on","page_number":228,"box":{"x":117,"y":614,"width":757,"height":12}},{"id":"9b368172-d408-4a68-b92b-bd095dcb1f6e","block_type":"box","text":"ordinary income dividends, capital gain dividends and redemption payments (“backup withholding”).","page_number":228,"box":{"x":116,"y":630,"width":744,"height":12}},{"id":"0f238373-35a5-473e-b975-bba1f9ccc619","block_type":"box","text":"Generally, shareholders subject to backup withholding will be non-corporate shareholders for whom no","page_number":228,"box":{"x":117,"y":645,"width":767,"height":12}},{"id":"353e1009-83db-45ba-bd9a-34c3f7ba92c4","block_type":"box","text":"certified taxpayer identification number is on file with the Fund or who, to the Fund’s knowledge, have","page_number":228,"box":{"x":116,"y":661,"width":752,"height":12}},{"id":"d0c92651-2978-4cad-8be0-2798094f593c","block_type":"box","text":"furnished an incorrect number. When establishing an account, an investor must certify under penalty of","page_number":228,"box":{"x":116,"y":676,"width":766,"height":12}},{"id":"9966f542-a76d-483e-be3d-a8aad7db7d21","block_type":"box","text":"perjury that such number is correct and that such investor is not otherwise subject to backup","page_number":228,"box":{"x":117,"y":692,"width":684,"height":12}},{"id":"d2aa5ce2-fa80-4c72-ac03-22bbc7071a5d","block_type":"box","text":"withholding. Backup withholding is not an additional tax. Any amount withheld generally may be","page_number":228,"box":{"x":116,"y":707,"width":708,"height":12}},{"id":"b6bed879-9f63-48ca-b729-7a4e4cec5edf","block_type":"box","text":"allowed as a refund or a credit against a shareholder’s U.S. federal income tax liability, provided that","page_number":228,"box":{"x":116,"y":723,"width":745,"height":12}},{"id":"33fc85d9-f319-4213-943a-7e7e139dc771","block_type":"box","text":"the required information is timely forwarded to the IRS.","page_number":228,"box":{"x":116,"y":738,"width":405,"height":12}},{"id":"5d1c76a8-f214-4d91-8920-330d4961aeaa","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","page_number":228,"box":{"x":117,"y":768,"width":739,"height":13}},{"id":"68ef0b96-bab5-45e9-be62-5d8b49949cb6","block_type":"box","text":"taxable year or $4 million in any combination of taxable years for an individual shareholder or","page_number":228,"box":{"x":116,"y":784,"width":691,"height":13}},{"id":"f67ff706-c00c-494f-b373-047cc467dd46","block_type":"box","text":"$10 million in any single taxable year or $20 million in any combination of taxable years for a corporate","page_number":228,"box":{"x":116,"y":799,"width":762,"height":13}},{"id":"8e4d7493-bbcf-44ce-bafb-30d36ce49490","block_type":"box","text":"shareholder in any single taxable year, the shareholder must file a disclosure statement on IRS Form","page_number":228,"box":{"x":116,"y":816,"width":749,"height":12}},{"id":"9848404a-303f-4cc6-832b-bb547423bd49","block_type":"box","text":"8886 with the IRS. Direct shareholders of portfolio securities are in many cases exempted. That a loss","page_number":228,"box":{"x":116,"y":831,"width":763,"height":12}},{"id":"ebc60085-d64b-4563-9728-fe55600b065a","block_type":"box","text":"is reportable under these regulations does not affect the legal determination of whether the taxpayer’s","page_number":228,"box":{"x":117,"y":847,"width":760,"height":12}},{"id":"c5e6b6c6-d093-428d-ae1c-40a57d47c3d6","block_type":"box","text":"treatment of the loss is proper. Shareholders should consult their tax advisors to determine the","page_number":228,"box":{"x":116,"y":862,"width":707,"height":12}},{"id":"ca4d669b-1106-4bac-a35f-fa4aadf25973","block_type":"box","text":"applicability of these regulations in light of their individual circumstances.","page_number":228,"box":{"x":116,"y":878,"width":544,"height":12}},{"id":"8f01c62a-22e0-4466-9377-4c030fd4de81","block_type":"box","text":"II-169","page_number":228,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"960d2127-4883-4580-91cb-4dbdbe49a73a","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":228,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a8d3215b-e8bb-49a1-920f-745f800c5bca","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits,","page_number":229,"box":{"x":117,"y":87,"width":740,"height":12}},{"id":"76cc78e8-6cc0-4e16-aa41-67a3cb8334ec","block_type":"box","text":"taxable mortgage pools or other investments may cause the Fund to report some or all of its","page_number":229,"box":{"x":116,"y":102,"width":689,"height":13}},{"id":"3ee707a3-724f-4931-b6a5-65bf1fc06b2b","block_type":"box","text":"distributions as “excess inclusion income.” To Fund shareholders, such excess inclusion income may:","page_number":229,"box":{"x":116,"y":118,"width":760,"height":12}},{"id":"9f24e950-7c6e-4ec7-a538-ba26a02bc18e","block_type":"box","text":"(i) constitute taxable income, as unrelated business taxable income (“UBTI”) for those shareholders","page_number":229,"box":{"x":117,"y":134,"width":742,"height":12}},{"id":"c0e2692e-d9cf-45b8-87fc-18cfa5eff747","block_type":"box","text":"who would otherwise be tax-exempt such as individual retirement accounts, 401(k) accounts, Keogh","page_number":229,"box":{"x":116,"y":149,"width":749,"height":12}},{"id":"ec075d71-1860-4c2f-95fc-a9f61c6f8795","block_type":"box","text":"plans, pension plans and certain charitable entities; (ii) not be offset by otherwise allowable deductions","page_number":229,"box":{"x":117,"y":165,"width":766,"height":12}},{"id":"84ed5b14-4bdd-4ca5-bd5d-ba70d71993d6","block_type":"box","text":"for tax purposes; (iii) not be eligible for reduced U.S. withholding for non-U.S. shareholders even from","page_number":229,"box":{"x":116,"y":180,"width":758,"height":12}},{"id":"2d99c420-a374-4be6-9534-80b4fcb28115","block_type":"box","text":"tax treaty countries; and (iv) cause the Fund to be subject to tax if certain “disqualified organizations,”","page_number":229,"box":{"x":116,"y":196,"width":757,"height":12}},{"id":"e508335c-636d-49b0-ae40-7e625a214da4","block_type":"box","text":"as defined by the Code, are Fund shareholders. The Fund tries to avoid investing in REITs that are","page_number":229,"box":{"x":116,"y":211,"width":740,"height":12}},{"id":"7a0ce75c-930e-4787-bda1-5acc01ef93ce","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so.","page_number":229,"box":{"x":116,"y":227,"width":771,"height":12}},{"id":"7279c57f-b74f-4695-9480-312667309cd3","block_type":"box","text":"Because information about a REIT’s investments may be inadequate or inaccurate, or because a REIT","page_number":229,"box":{"x":117,"y":242,"width":767,"height":12}},{"id":"c4ce5065-d177-4d84-927d-630db558cb90","block_type":"box","text":"may change its investment program, the Fund may not be successful in avoiding the consequences","page_number":229,"box":{"x":117,"y":258,"width":744,"height":12}},{"id":"a3c5a351-9702-48ef-b29d-bc85a1074537","block_type":"box","text":"described above. Avoidance of investments in REITs that generate excess inclusion income may","page_number":229,"box":{"x":116,"y":273,"width":725,"height":12}},{"id":"787c6968-b4cd-44f6-9545-c16d023ca35b","block_type":"box","text":"require the Fund to forego otherwise attractive investment opportunities.","page_number":229,"box":{"x":117,"y":289,"width":540,"height":12}},{"id":"682a164b-8049-4e5e-ab3c-4ddb2496b3fe","block_type":"box","text":"Dividends and interest received and capital gains realized by a Fund may give rise to withholding and","page_number":229,"box":{"x":117,"y":320,"width":756,"height":12}},{"id":"0638dc0c-452d-41c6-a0bd-fb5bb5ad8f0d","block_type":"box","text":"other taxes imposed by foreign countries. Tax conventions between certain foreign countries and the","page_number":229,"box":{"x":116,"y":335,"width":753,"height":12}},{"id":"d7ac6b96-d954-4404-b6f7-cf5c823d55bc","block_type":"box","text":"United States may reduce or eliminate such taxes. Shareholders of a Fund more than 50% by value of","page_number":229,"box":{"x":117,"y":351,"width":764,"height":12}},{"id":"5ca93c91-0d55-4157-a67d-5a7dcb89edd9","block_type":"box","text":"the assets of which at the close of a taxable year are foreign securities may be able to claim U.S.","page_number":229,"box":{"x":116,"y":366,"width":725,"height":12}},{"id":"7bdb9112-7620-429b-be13-0d82cecd6f1b","block_type":"box","text":"foreign tax credits with respect to such foreign taxes paid by the Fund, subject to certain requirements","page_number":229,"box":{"x":116,"y":382,"width":762,"height":12}},{"id":"627e47f6-a373-4e77-98d1-83bbb93867fe","block_type":"box","text":"and limitations contained in the Code. For example, certain retirement accounts and certain tax-exempt","page_number":229,"box":{"x":116,"y":397,"width":772,"height":12}},{"id":"2f2982cb-6ae1-429b-af56-8388e574b00e","block_type":"box","text":"organizations cannot claim foreign tax credits on investments in foreign securities held in a Fund. In","page_number":229,"box":{"x":116,"y":413,"width":743,"height":12}},{"id":"0d6110c8-6c59-4c4d-bbd5-d5ceef8e28d6","block_type":"box","text":"addition, a foreign tax credit may be claimed with respect to withholding tax on payments with respect","page_number":229,"box":{"x":116,"y":428,"width":759,"height":12}},{"id":"803314a0-b6b9-4c60-88ae-3fb7db5d8c8f","block_type":"box","text":"to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":229,"box":{"x":116,"y":444,"width":724,"height":12}},{"id":"706c5eeb-ce2e-4661-9fa6-8f590a44baf8","block_type":"box","text":"shareholder and the Fund must meet these holding period requirements, and if a Fund fails to do so, it","page_number":229,"box":{"x":116,"y":459,"width":764,"height":12}},{"id":"bcc6efcf-8029-43a4-bdbb-da1e46637da3","block_type":"box","text":"will not be able to “pass through” to shareholders the ability to claim a credit or a deduction for the","page_number":229,"box":{"x":116,"y":475,"width":731,"height":12}},{"id":"482e561a-340b-4dcd-85f2-4945fa75d96c","block_type":"box","text":"related foreign taxes paid by the Fund. Further, to the extent that a Fund engages in securities lending","page_number":229,"box":{"x":117,"y":490,"width":763,"height":12}},{"id":"eb3695df-7ddf-4089-b974-93065482d5e5","block_type":"box","text":"with respect to a security paying income subject to foreign taxes, it may not be able to pass through to","page_number":229,"box":{"x":116,"y":506,"width":763,"height":12}},{"id":"a6919c8d-a763-4e69-b46d-a0a7aec75748","block_type":"box","text":"its shareholders the ability to take a foreign tax credit for those taxes. If a Fund satisfies the applicable","page_number":229,"box":{"x":117,"y":521,"width":762,"height":12}},{"id":"f831d29b-839a-4d5c-bc73-18b5c0758b56","block_type":"box","text":"requirements, such Fund will be eligible to file an election with the IRS pursuant to which shareholders","page_number":229,"box":{"x":117,"y":537,"width":763,"height":12}},{"id":"d124f30d-6e5d-4e0e-bf4f-21f8222f5ee1","block_type":"box","text":"of the Fund will be required to include their proportionate shares of such foreign taxes in their U.S.","page_number":229,"box":{"x":116,"y":552,"width":733,"height":12}},{"id":"7c8d109a-0370-4a42-a40f-502507ac7bbe","block_type":"box","text":"income tax returns as gross income, treat such proportionate shares as taxes paid by them, and","page_number":229,"box":{"x":117,"y":568,"width":718,"height":12}},{"id":"49ef891c-d1a5-4471-aa95-f0f493385db6","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as","page_number":229,"box":{"x":116,"y":583,"width":738,"height":12}},{"id":"168073ea-7041-4651-8f6e-970350f7ec59","block_type":"box","text":"foreign tax credits against their U.S. income taxes. No deductions for foreign taxes, however, may be","page_number":229,"box":{"x":116,"y":599,"width":755,"height":12}},{"id":"5d699486-bcf3-4114-b00f-149eceb032b1","block_type":"box","text":"claimed by noncorporate shareholders who do not itemize deductions. A shareholder that is a","page_number":229,"box":{"x":116,"y":614,"width":699,"height":12}},{"id":"b3a4188f-966b-4d75-ada1-596522cd994f","block_type":"box","text":"nonresident alien individual or a foreign corporation may be subject to U.S. withholding tax on the","page_number":229,"box":{"x":117,"y":630,"width":726,"height":12}},{"id":"373e8cdd-6fa9-467d-a102-85509f27dbb5","block_type":"box","text":"income resulting from a Fund’s election described in this paragraph but may not be able to claim a","page_number":229,"box":{"x":117,"y":645,"width":733,"height":12}},{"id":"14fac68d-3552-48af-9044-293e9847548d","block_type":"box","text":"credit or deduction against such U.S. tax for the foreign taxes treated as having been paid by such","page_number":229,"box":{"x":116,"y":661,"width":730,"height":12}},{"id":"7571aa27-c625-44e1-a17d-b17e8e67c46f","block_type":"box","text":"shareholder. A Fund will report annually to its shareholders the amount per share of such foreign taxes","page_number":229,"box":{"x":116,"y":676,"width":763,"height":12}},{"id":"8b5b5411-51d1-4708-a900-efe8b348e7a0","block_type":"box","text":"and other information needed to claim the foreign tax credit.","page_number":229,"box":{"x":116,"y":692,"width":443,"height":12}},{"id":"8791097c-e4c1-48f8-9187-f703937401fb","block_type":"box","text":"Certain transactions entered into by the Funds are subject to special tax rules of the Code that may,","page_number":229,"box":{"x":117,"y":723,"width":739,"height":12}},{"id":"fca307a6-dd64-41eb-9912-12c4982628d0","block_type":"box","text":"among other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or","page_number":229,"box":{"x":116,"y":738,"width":722,"height":12}},{"id":"a3c6c904-408c-46da-bf00-d33b002609a4","block_type":"box","text":"otherwise limit the allowance of certain losses or deductions, and (c) accelerate the recognition of","page_number":229,"box":{"x":116,"y":754,"width":724,"height":12}},{"id":"217ad0cb-b141-4974-bdc2-91b101c45166","block_type":"box","text":"income without a corresponding receipt of cash (with which to make the necessary distributions to","page_number":229,"box":{"x":117,"y":769,"width":725,"height":12}},{"id":"3ab72731-3d6b-4248-80e3-9525868cbd8c","block_type":"box","text":"satisfy distribution requirements applicable to regulated investment companies). Operation of these","page_number":229,"box":{"x":116,"y":785,"width":736,"height":12}},{"id":"02fbabb9-9fb8-4142-bbc1-37bac8b71459","block_type":"box","text":"rules could, therefore, affect the character, amount and timing of distributions to shareholders. Special","page_number":229,"box":{"x":117,"y":800,"width":756,"height":12}},{"id":"1bd05851-e309-4f81-a5dc-567ba5ffbc9e","block_type":"box","text":"tax rules also may require a Fund to mark-to-market certain types of positions in its portfolio (","page_number":229,"box":{"x":116,"y":816,"width":691,"height":12}},{"id":"15d57759-c82d-44c9-aacc-1482e45654b7","block_type":"box","text":"i.e.","page_number":229,"box":{"x":808,"y":816,"width":20,"height":9}},{"id":"c5271730-3827-4e6c-8e0c-e2ae71546482","block_type":"box","text":", treat","page_number":229,"box":{"x":831,"y":816,"width":42,"height":11}},{"id":"f71a9052-addc-4515-a656-29220cc14cab","block_type":"box","text":"them as sold on the last day of the taxable year), and may result in the recognition of income without a","page_number":229,"box":{"x":116,"y":831,"width":765,"height":12}},{"id":"afc6f686-da57-48bc-9c2f-4d8825e2a9df","block_type":"box","text":"corresponding receipt of cash. Funds engaging in transactions affected by these provisions intend to","page_number":229,"box":{"x":116,"y":847,"width":751,"height":12}},{"id":"2e45eb77-413d-4133-99ec-c729b6e74a56","block_type":"box","text":"monitor their transactions, make appropriate tax elections and make appropriate entries in their books","page_number":229,"box":{"x":117,"y":862,"width":760,"height":12}},{"id":"bd15426c-56a2-4dcf-a5f6-e147db7dad6c","block_type":"box","text":"II-170","page_number":229,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"326e5d06-c579-462d-9c37-f98fbd0158bb","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":229,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"931f282f-993e-4d7e-95f3-bbb89363a9c9","block_type":"box","text":"and records to lessen the effect of these tax rules and avoid any possible disqualification from the","page_number":230,"box":{"x":116,"y":87,"width":730,"height":12}},{"id":"2e3ab891-a634-49a9-b4d2-bc2625754aaa","block_type":"box","text":"special treatment afforded regulated investment companies under the Code.","page_number":230,"box":{"x":116,"y":102,"width":571,"height":13}},{"id":"d90f94fe-540d-4c92-b1cc-f868ae9a8286","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated","page_number":230,"box":{"x":117,"y":130,"width":687,"height":13}},{"id":"f2e65a87-b47a-4934-a9a0-5456d712a803","block_type":"box","text":"instruments, and any of the Fund’s transactions in foreign currencies and hedging activities, are likely","page_number":230,"box":{"x":117,"y":146,"width":756,"height":12}},{"id":"d1256fff-1244-45d9-940d-ea1b10488355","block_type":"box","text":"to produce a difference between its book income and the sum of its taxable income and net tax-exempt","page_number":230,"box":{"x":116,"y":161,"width":771,"height":12}},{"id":"8a4db3b0-0839-4851-9e72-3adde81c07b3","block_type":"box","text":"income (if any). If such a difference arises, and the Fund’s book income is less than the sum of its","page_number":230,"box":{"x":117,"y":177,"width":730,"height":12}},{"id":"01af2746-4dec-4e27-a037-2e8440187d73","block_type":"box","text":"taxable income and net tax-exempt income, the Fund could be required to make distributions","page_number":230,"box":{"x":116,"y":193,"width":695,"height":11}},{"id":"e98672a8-2e28-45ce-ac08-29faee8b3291","block_type":"box","text":"exceeding book income to qualify as a RIC that is accorded special tax treatment and to avoid an","page_number":230,"box":{"x":116,"y":208,"width":727,"height":12}},{"id":"5936d48f-9a54-4151-96c4-7a53e3927579","block_type":"box","text":"entity-level tax. In the alternative, if the Fund makes any distribution based on book income and such","page_number":230,"box":{"x":116,"y":223,"width":754,"height":13}},{"id":"4fc31c98-bda8-4ad4-8ae2-ec5a283e10a5","block_type":"box","text":"book income exceeds the sum of its taxable income (including realized capital gains) and net tax","page_number":230,"box":{"x":117,"y":239,"width":721,"height":12}},{"id":"56fa8f8e-10c3-4bc8-8a76-3ad026b9b383","block_type":"box","text":"exempt income, the distribution (if any) of such excess generally will be treated as (i) a dividend to the","page_number":230,"box":{"x":116,"y":254,"width":761,"height":13}},{"id":"0b0f1c61-c80a-4da4-a5b4-e6960c954535","block_type":"box","text":"extent of the Fund’s remaining earnings and profits (including earnings and profits arising from tax","page_number":230,"box":{"x":116,"y":270,"width":733,"height":12}},{"id":"e1328e5f-9de8-4b90-aeec-9441dc45e8d5","block_type":"box","text":"exempt income), (ii) thereafter, as a return of capital to the extent of the recipient’s basis in its shares,","page_number":230,"box":{"x":116,"y":285,"width":759,"height":13}},{"id":"d5f2f00d-dd35-47fb-9783-7e0b60d8926a","block_type":"box","text":"and (iii) thereafter as gain from the sale or exchange of a capital asset.","page_number":230,"box":{"x":116,"y":301,"width":530,"height":12}},{"id":"b8c204f9-ec33-4e52-bb4b-5a4e33fa544e","block_type":"box","text":"If a Fund invests in underlying funds, the Fund’s","page_number":230,"box":{"x":117,"y":329,"width":361,"height":12}},{"id":"32233eaa-f783-4c9c-a718-ee12a261eadf","block_type":"box","text":"realized losses on sales of shares of underlying funds","page_number":230,"box":{"x":479,"y":329,"width":403,"height":12}},{"id":"bee44868-6aed-4af7-a687-3bb4d2d919ef","block_type":"box","text":"may be indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains","page_number":230,"box":{"x":117,"y":344,"width":749,"height":12}},{"id":"31db89b1-4069-4e9b-8fcb-20c7954a34d1","block_type":"box","text":"by underlying funds will be recognized as ordinary income by the Fund and would not be offset by the","page_number":230,"box":{"x":117,"y":360,"width":757,"height":12}},{"id":"4cddf8b1-14f5-4924-8769-f5b0da456c5a","block_type":"box","text":"Fund’s capital loss carryforwards, if any. Capital loss carryforwards of underlying funds, if any, would","page_number":230,"box":{"x":117,"y":375,"width":751,"height":12}},{"id":"341414b0-57d3-447e-bbe9-a0a48df62736","block_type":"box","text":"not offset net capital gains of the Fund. Each of these effects is caused by the Fund’s expected","page_number":230,"box":{"x":117,"y":391,"width":710,"height":12}},{"id":"e89d0714-7b1d-46eb-b7a4-b5fbca4f3ede","block_type":"box","text":"investment in the underlying funds and may result in distributions to Fund shareholders being of higher","page_number":230,"box":{"x":117,"y":406,"width":766,"height":12}},{"id":"0cf9b3d9-d98e-4016-9bc7-41a82d9bcbd1","block_type":"box","text":"magnitudes and less likely to qualify for lower capital gain tax rates than if the Fund were to invest","page_number":230,"box":{"x":117,"y":422,"width":730,"height":12}},{"id":"ef77a9bf-ba8f-48c8-ac3b-289152170e6e","block_type":"box","text":"otherwise.","page_number":230,"box":{"x":116,"y":438,"width":81,"height":9}},{"id":"a0cc889b-4988-499c-a8ac-19bd945e336d","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":230,"box":{"x":116,"y":465,"width":765,"height":12}},{"id":"3894c600-3f57-4f46-a69c-5ca16ae328cd","block_type":"box","text":"“Subsidiary”). It is expected that the Subsidiary will be a “controlled foreign corporation” and that all of","page_number":230,"box":{"x":116,"y":481,"width":758,"height":12}},{"id":"7f095979-4bfc-495d-805c-a182d801a94e","block_type":"box","text":"its net income will be “subpart F income” for U.S. federal income tax purposes. If that is the case, the","page_number":230,"box":{"x":117,"y":496,"width":752,"height":12}},{"id":"97f34f51-7872-4e14-9c27-024610a4bc76","block_type":"box","text":"Fund will be required to report all of the Subsidiary’s net income as ordinary income regardless of","page_number":230,"box":{"x":117,"y":512,"width":726,"height":12}},{"id":"55622dff-3a6f-418e-bc00-e74cc0ebea78","block_type":"box","text":"whether that income would be treated differently (for example, as capital gain) at the Subsidiary level","page_number":230,"box":{"x":116,"y":527,"width":753,"height":12}},{"id":"4facb494-f088-410e-89f6-8217b16f1407","block_type":"box","text":"and regardless of whether that income is distributed to the Fund. (Previously taxed income will not,","page_number":230,"box":{"x":116,"y":543,"width":738,"height":12}},{"id":"00b5d671-468e-4c0e-a277-35fa5b8259af","block_type":"box","text":"however, be taxable again when distributed.) If a net loss is realized by the Subsidiary in any taxable","page_number":230,"box":{"x":117,"y":558,"width":751,"height":12}},{"id":"91144298-5783-4b48-83f2-18bc6d738f83","block_type":"box","text":"year, the loss will generally not be available to offset the Fund’s other income. It is not expected that","page_number":230,"box":{"x":116,"y":574,"width":747,"height":12}},{"id":"d8cfa274-5fc6-448a-a0d7-5d89f4c64c07","block_type":"box","text":"the Subsidiary will be subject to an entity-level federal tax.","page_number":230,"box":{"x":116,"y":589,"width":436,"height":12}},{"id":"a68c57b2-67c4-4581-9ef7-6ee4f7b21895","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under","page_number":230,"box":{"x":117,"y":617,"width":750,"height":12}},{"id":"d747520a-279e-4c38-bed3-411b3d12adbe","block_type":"box","text":"foreign law, the Fund will generally be treated as owning shares in a passive foreign investment","page_number":230,"box":{"x":116,"y":633,"width":714,"height":12}},{"id":"6d7161bb-cd9d-45df-9ad3-503416ebff32","block_type":"box","text":"company (“PFIC”) for U.S. federal income tax purposes. A Fund may be subject to U.S. federal income","page_number":230,"box":{"x":116,"y":648,"width":769,"height":12}},{"id":"becdc1e4-2e04-4dfe-b808-a23c6a3f2826","block_type":"box","text":"tax, and interest charges (at the rate applicable to tax underpayments) on tax liability treated as having","page_number":230,"box":{"x":116,"y":664,"width":761,"height":12}},{"id":"cfb7e695-a3ca-4c84-bd7a-658e7bf8e89d","block_type":"box","text":"been deferred with respect to certain distributions from such a company and on gain from the","page_number":230,"box":{"x":117,"y":679,"width":691,"height":12}},{"id":"a901e567-1205-4f6d-8f96-2432e9153f0a","block_type":"box","text":"disposition of the shares of such a company (collectively referred to as “excess distributions”), even if","page_number":230,"box":{"x":116,"y":695,"width":752,"height":12}},{"id":"890c14e5-488b-497d-9ab8-6ffe3659b675","block_type":"box","text":"such excess distributions are paid by the Fund as a dividend to its shareholders. However, a Fund may","page_number":230,"box":{"x":116,"y":710,"width":766,"height":12}},{"id":"eda0e55c-f629-43ff-aa12-6bf4a4864de8","block_type":"box","text":"elect to “mark-to-market” at the end of each taxable year shares that it holds in PFICs. The election is","page_number":230,"box":{"x":116,"y":726,"width":753,"height":12}},{"id":"67cda49f-c2ff-4aeb-a883-f1189ed6c729","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable","page_number":230,"box":{"x":117,"y":741,"width":734,"height":12}},{"id":"6cb70b68-4c21-4d2c-9d98-1eab1f1a3a5e","block_type":"box","text":"years, unless revoked with consent from the IRS. Under this election, a Fund would recognize as","page_number":230,"box":{"x":116,"y":757,"width":719,"height":12}},{"id":"8f18036a-e86f-4295-8dc6-22141f1206bf","block_type":"box","text":"ordinary income any increase in the value of its shares as of the close of the taxable year over their","page_number":230,"box":{"x":116,"y":772,"width":737,"height":12}},{"id":"004fc21b-22d4-4e1c-9b6d-e3c16fdb0956","block_type":"box","text":"adjusted tax basis and as ordinary loss any decrease in such value, but only to the extent of previously","page_number":230,"box":{"x":116,"y":788,"width":763,"height":12}},{"id":"80a1951c-02be-492b-a85f-ef2bab9ad8b7","block_type":"box","text":"recognized “mark-to-market” gains. By making the mark-to-market election, a Fund could avoid","page_number":230,"box":{"x":117,"y":803,"width":704,"height":12}},{"id":"b2bbc40b-6a78-4d1c-b402-f7f4d0ca2bb1","block_type":"box","text":"imposition of the interest charge with respect to excess distributions from PFICs, but in any particular","page_number":230,"box":{"x":117,"y":819,"width":749,"height":12}},{"id":"ee3d107d-06ea-4891-992e-04ad5e86617a","block_type":"box","text":"year might be required to recognize income in excess of the distributions it received from PFICs.","page_number":230,"box":{"x":116,"y":834,"width":720,"height":12}},{"id":"9536c52e-f77f-43fe-bd24-efb4883ff51d","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","page_number":230,"box":{"x":117,"y":862,"width":746,"height":12}},{"id":"ff7dd239-a28a-4139-93ab-11e5eb5718bc","block_type":"box","text":"Code, in lieu of the foregoing requirements, the Fund would be required to include in income each year","page_number":230,"box":{"x":117,"y":878,"width":768,"height":12}},{"id":"574b1255-47fe-47d7-b185-1573b89568dd","block_type":"box","text":"II-171","page_number":230,"box":{"x":480,"y":909,"width":38,"height":9}},{"id":"3956249d-2a7f-4fec-ab6c-d2f44af6986b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":230,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8726432e-b283-4600-8c99-53821907b282","block_type":"box","text":"a portion of the ordinary earnings and net capital gains of the qualified electing fund, even if not","page_number":231,"box":{"x":116,"y":87,"width":712,"height":12}},{"id":"90860fa4-a9ec-41dd-afc2-e441f9bb3e28","block_type":"box","text":"distributed to the Fund, and such amounts would be subject to the 90% and excise tax distribution","page_number":231,"box":{"x":116,"y":102,"width":732,"height":13}},{"id":"3ba61230-30ea-4aa5-b9e1-b4a58f42eee8","block_type":"box","text":"requirements described above. In order to make this election, the Fund would be required to obtain","page_number":231,"box":{"x":117,"y":118,"width":739,"height":12}},{"id":"c6180640-23ab-4bd7-82cf-a7b9df957617","block_type":"box","text":"certain annual information from the PFICs in which it invests, which may be difficult or impossible to","page_number":231,"box":{"x":116,"y":134,"width":743,"height":12}},{"id":"d7ba4b90-8def-4988-a0ca-18e0055bf7a4","block_type":"box","text":"obtain.","page_number":231,"box":{"x":116,"y":149,"width":55,"height":10}},{"id":"81927333-0d62-41ba-b40d-79a75f5068a1","block_type":"box","text":"In certain situations, a Fund may, for a taxable year, defer","page_number":231,"box":{"x":117,"y":179,"width":434,"height":12}},{"id":"9c7c3aa7-8a8b-45a0-a44d-4e4cf7446c45","block_type":"box","text":"all or a portion of its net capital loss (or if","page_number":231,"box":{"x":552,"y":179,"width":305,"height":12}},{"id":"817dd8f8-a31a-425e-8c8d-614f9f7b9975","block_type":"box","text":"there is no net capital loss, any net long-term or short-term capital loss) realized after October and its","page_number":231,"box":{"x":116,"y":194,"width":755,"height":12}},{"id":"73566899-65b6-4614-be7c-35cce4e9c694","block_type":"box","text":"late-year ordinary loss (defined as the sum of the excess of post-October foreign currency and PFIC","page_number":231,"box":{"x":117,"y":210,"width":748,"height":12}},{"id":"42dcc611-fafc-438f-bcbe-57c873436487","block_type":"box","text":"losses over post-October foreign currency and PFIC gains plus the excess of post-December ordinary","page_number":231,"box":{"x":117,"y":225,"width":761,"height":12}},{"id":"80951ec7-a6a8-4544-9b27-9e1efc068652","block_type":"box","text":"losses over post-December ordinary income) until the next taxable year in computing its investment","page_number":231,"box":{"x":117,"y":241,"width":743,"height":12}},{"id":"34c896ca-9267-4232-9716-1fd318d711b3","block_type":"box","text":"company taxable income and net capital gain, which will defer the recognition of such realized losses.","page_number":231,"box":{"x":116,"y":256,"width":759,"height":12}},{"id":"ee6c04c1-a6dd-4039-8730-cc26643cb715","block_type":"box","text":"Such deferrals and other rules regarding gains and losses realized after October (or December) may","page_number":231,"box":{"x":116,"y":272,"width":752,"height":12}},{"id":"dfb81c69-bb76-491b-a871-8c3fd88b0b0c","block_type":"box","text":"affect the tax character of shareholder distributions.","page_number":231,"box":{"x":116,"y":287,"width":387,"height":10}},{"id":"f89fe8f9-6623-4250-b2f8-41c09c169fb0","block_type":"box","text":"Municipal Funds","page_number":231,"box":{"x":116,"y":317,"width":127,"height":12}},{"id":"e877581e-04dc-4daf-a23c-bdbf07467e56","block_type":"box","text":"Each Municipal Fund intends to qualify to pay “exempt-interest dividends” as defined in","page_number":231,"box":{"x":117,"y":339,"width":650,"height":12}},{"id":"e974064e-641d-42d2-a3f0-7cd71aa09531","block_type":"box","text":"Section 852(b)(5) of the Code. Under such section if, at the close of each quarter of a Fund’s taxable","page_number":231,"box":{"x":116,"y":355,"width":753,"height":12}},{"id":"c6d17aa9-a4da-4979-a5f2-b092ad6a7b76","block_type":"box","text":"year, at least 50% of the value of the Fund’s total assets consists of obligations exempt from U.S.","page_number":231,"box":{"x":116,"y":370,"width":728,"height":12}},{"id":"8558af23-3977-4157-b875-44e9a0668f73","block_type":"box","text":"federal income tax (“tax-exempt obligations”) under Section 103(a) of the Code (relating generally to","page_number":231,"box":{"x":116,"y":386,"width":748,"height":12}},{"id":"a9018d99-4353-4ef6-95cb-7f4b1c97b87e","block_type":"box","text":"obligations of a state or local governmental unit), the Fund shall be qualified to pay exempt-interest","page_number":231,"box":{"x":116,"y":401,"width":739,"height":12}},{"id":"2c59a066-cd30-4ff7-9e7e-e778c45c823f","block_type":"box","text":"dividends to holders of all outstanding classes of its shares (together the “shareholders”). Exempt","page_number":231,"box":{"x":116,"y":417,"width":728,"height":12}},{"id":"eb4db362-1dcf-405f-a6f5-06ff724b58ca","block_type":"box","text":"interest dividends are dividends or any part thereof paid by a Fund that are attributable to interest on","page_number":231,"box":{"x":117,"y":432,"width":749,"height":12}},{"id":"82989077-44d2-4495-955b-a966485577c3","block_type":"box","text":"tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":231,"box":{"x":116,"y":448,"width":740,"height":12}},{"id":"2e5743b5-5aee-40b7-8cd7-36fedbd68905","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference","page_number":231,"box":{"x":117,"y":463,"width":727,"height":12}},{"id":"2fb6bf3a-7b76-4569-a069-856e38665d30","block_type":"box","text":"items discussed below) among the Fund’s shareholders according to a method (that it believes is","page_number":231,"box":{"x":117,"y":479,"width":725,"height":12}},{"id":"0b83a92b-abe0-4f88-a676-b8692c339d40","block_type":"box","text":"consistent with the Commission rule permitting the issuance and sale of multiple classes of shares)","page_number":231,"box":{"x":116,"y":494,"width":741,"height":12}},{"id":"7b6e458b-74a0-4d43-adcc-41a57d2175a5","block_type":"box","text":"that is based upon the gross income that is allocable to each class of shareholders during the taxable","page_number":231,"box":{"x":116,"y":510,"width":758,"height":12}},{"id":"94ac45f1-1c59-4458-91b7-ded0a365cbb3","block_type":"box","text":"year, or such other method as the IRS may prescribe.","page_number":231,"box":{"x":116,"y":525,"width":404,"height":12}},{"id":"94d1c9b7-4afd-4cb2-970d-afe421b38b35","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal","page_number":231,"box":{"x":117,"y":555,"width":714,"height":12}},{"id":"68cf4aa6-1989-43d3-a589-701814f5d808","block_type":"box","text":"income tax purposes. Exempt-interest dividends are included, however, in determining the portion, if","page_number":231,"box":{"x":117,"y":570,"width":748,"height":12}},{"id":"6e42fd25-902c-445c-a0d6-39babb245e75","block_type":"box","text":"any, of a person’s social security and railroad retirement benefits subject to U.S. federal income taxes.","page_number":231,"box":{"x":116,"y":586,"width":764,"height":12}},{"id":"39cd035b-1a8c-4dc1-b25c-c2b5e5dd86b5","block_type":"box","text":"Interest on indebtedness incurred or continued to purchase or carry shares of a regulated investment","page_number":231,"box":{"x":117,"y":601,"width":754,"height":13}},{"id":"4d671f9c-f701-4ded-8123-a2efd202abcf","block_type":"box","text":"company paying exempt-interest dividends, such as the Fund, will not be deductible by the investor for","page_number":231,"box":{"x":116,"y":617,"width":766,"height":12}},{"id":"9d2da624-0bfd-43da-b3c6-57ce84ae6c3f","block_type":"box","text":"U.S. federal income tax purposes to the extent attributable to exempt-interest dividends. Shareholders","page_number":231,"box":{"x":117,"y":632,"width":762,"height":12}},{"id":"2e0f6c05-ba3e-408c-b462-b9902ebf41b5","block_type":"box","text":"are advised to consult their tax advisors with respect to whether exempt-interest dividends retain the","page_number":231,"box":{"x":116,"y":648,"width":749,"height":12}},{"id":"03553f75-9aea-4b0c-9e57-e1d9fbe74c6b","block_type":"box","text":"exclusion under Code Section 103(a) if a shareholder would be treated as a “substantial user” or","page_number":231,"box":{"x":116,"y":663,"width":717,"height":13}},{"id":"77b73063-2086-40ee-bccd-c8a3c9bdac9f","block_type":"box","text":"“related person” under Code Section 147(a) with respect to property financed with the proceeds of an","page_number":231,"box":{"x":116,"y":679,"width":751,"height":12}},{"id":"15b21ff9-eedb-47d2-809c-38391a5b5a64","block_type":"box","text":"issue of PABs, if any, held by a Fund.","page_number":231,"box":{"x":117,"y":694,"width":277,"height":13}},{"id":"0357d344-49dc-40ac-bed8-a0c87e698ac6","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned","page_number":231,"box":{"x":116,"y":724,"width":745,"height":12}},{"id":"af3a99bc-7c07-46ae-8daf-c708859d19d8","block_type":"box","text":"out by the Fund will not be considered exempt interest, and distributions by the Fund of such substitute","page_number":231,"box":{"x":116,"y":740,"width":764,"height":12}},{"id":"d16fdfce-4d26-44c0-83e8-48fc20d1e3cb","block_type":"box","text":"payments will not constitute exempt-interest dividends.","page_number":231,"box":{"x":117,"y":755,"width":404,"height":12}},{"id":"c8915d07-d6b5-4ab7-89c8-694d019adae0","block_type":"box","text":"Distributions in excess of a Fund’s earnings and profits will first reduce the adjusted tax basis of a","page_number":231,"box":{"x":117,"y":785,"width":722,"height":12}},{"id":"9e08d2bf-5b8a-4f21-9449-57709ba19426","block_type":"box","text":"holder’s shares and, after such adjusted tax basis is reduced to zero, will constitute capital gains to","page_number":231,"box":{"x":117,"y":800,"width":733,"height":12}},{"id":"b2cd5a09-f35e-4363-9db3-61d3d96df449","block_type":"box","text":"such holder (assuming the shares are held as a capital asset). Any loss upon the sale or exchange of","page_number":231,"box":{"x":116,"y":816,"width":753,"height":12}},{"id":"9a6c941e-89de-4767-9c44-bff32d0a3de0","block_type":"box","text":"Fund shares held for six months or less will be disallowed to the extent of any exempt-interest","page_number":231,"box":{"x":117,"y":831,"width":700,"height":12}},{"id":"6fd10726-7df5-4116-8b28-f2a75c66ee70","block_type":"box","text":"dividends received by the shareholder. In addition, any such loss that is not disallowed under the rule","page_number":231,"box":{"x":116,"y":847,"width":756,"height":12}},{"id":"ad9b456d-9134-41c8-8504-5849dc516b47","block_type":"box","text":"stated above will be treated as long-term capital loss to the extent of any capital gain dividends","page_number":231,"box":{"x":116,"y":862,"width":709,"height":12}},{"id":"8a3d23e3-6229-4e4d-a573-180754095b52","block_type":"box","text":"received by the shareholder.","page_number":231,"box":{"x":117,"y":878,"width":216,"height":12}},{"id":"5eb8a346-dc38-4763-bd33-2039543eccc1","block_type":"box","text":"II-172","page_number":231,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"d1491ff4-f168-49dc-85dd-07e3efff5278","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":231,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"7fd1d0c8-854e-4c59-b643-f704da2f7bee","block_type":"box","text":"All or a portion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a","page_number":232,"box":{"x":116,"y":87,"width":764,"height":12}},{"id":"f597fc5b-0518-4470-b421-c245d0a511c7","block_type":"box","text":"market discount will be treated as ordinary income rather than capital gain. This rule may increase the","page_number":232,"box":{"x":117,"y":103,"width":760,"height":12}},{"id":"4d91169c-f5a9-48f6-bd54-b5c12ec98003","block_type":"box","text":"amount of ordinary income dividends received by shareholders.","page_number":232,"box":{"x":116,"y":118,"width":477,"height":12}},{"id":"cf9d79eb-7729-4d8e-8cf3-ff0d6ae9ac9b","block_type":"box","text":"Any market discount recognized on a bond is taxable as ordinary income. A market discount bond is a","page_number":232,"box":{"x":116,"y":149,"width":763,"height":12}},{"id":"7d5d4a44-2698-43fb-a253-c8c7b835da22","block_type":"box","text":"bond acquired in the secondary market at a price below redemption value or adjusted issue price if","page_number":232,"box":{"x":117,"y":165,"width":737,"height":12}},{"id":"e8a43d43-5c63-4ac4-a83b-84f8c0e6ac7e","block_type":"box","text":"issued with original issue discount. Absent an election by the Fund to include the market discount in","page_number":232,"box":{"x":117,"y":180,"width":744,"height":12}},{"id":"9925cc02-047b-4fab-ae4f-41f5d8e74d1d","block_type":"box","text":"income as it accrues, gain on the Fund’s disposition of such an obligation will be treated as ordinary","page_number":232,"box":{"x":117,"y":196,"width":744,"height":12}},{"id":"7e07cebf-c89a-4173-820c-6cc2b87f0a71","block_type":"box","text":"income rather than capital gain to the extent of the accrued market discount.","page_number":232,"box":{"x":117,"y":211,"width":571,"height":12}},{"id":"a3356c15-521f-430a-8c8d-9888ea2b5269","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative","page_number":232,"box":{"x":116,"y":242,"width":763,"height":12}},{"id":"294e7cdc-1014-4bb2-9b47-f6b6604cd380","block_type":"box","text":"minimum tax. The alternative minimum tax applies to interest received on certain “PABs” issued after","page_number":232,"box":{"x":117,"y":258,"width":753,"height":11}},{"id":"165d4a05-4cd7-4b2f-980d-d19702954938","block_type":"box","text":"August 7, 1986. PABs are bonds that, although tax-exempt, are used for purposes other than those","page_number":232,"box":{"x":116,"y":273,"width":743,"height":12}},{"id":"2b4457cd-85df-4d61-b29b-4b396772b81f","block_type":"box","text":"generally performed by governmental units and that benefit non-governmental entities (","page_number":232,"box":{"x":116,"y":289,"width":648,"height":12}},{"id":"e55a5886-6609-468d-93ff-d802a896058e","block_type":"box","text":"e.g.","page_number":232,"box":{"x":765,"y":291,"width":26,"height":10}},{"id":"b3184f79-a7a1-400f-b463-328bca6736e3","block_type":"box","text":", bonds","page_number":232,"box":{"x":794,"y":289,"width":58,"height":11}},{"id":"1e279b03-8aae-4e09-aa85-dde3b0f68972","block_type":"box","text":"used for industrial development or housing purposes). Income received on such bonds is classified as","page_number":232,"box":{"x":117,"y":304,"width":760,"height":12}},{"id":"47c3a1ce-4228-4840-8c01-0c1440a3e6b2","block_type":"box","text":"an item of “tax preference,” which could subject certain investors in such bonds, including shareholders","page_number":232,"box":{"x":116,"y":320,"width":771,"height":12}},{"id":"c97aacfd-4a9b-47fe-a631-f43cd6ec784a","block_type":"box","text":"of a Fund, to a federal alternative minimum tax. A Fund will purchase such “PABs” and will report to","page_number":232,"box":{"x":116,"y":335,"width":744,"height":12}},{"id":"d5c195ef-1194-4d0b-865a-3b024cbe1278","block_type":"box","text":"shareholders after the close of the calendar year the portion of the Fund’s dividends declared during","page_number":232,"box":{"x":116,"y":351,"width":748,"height":12}},{"id":"b8499c07-4c00-416b-8c59-df63fa4d15a9","block_type":"box","text":"the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":232,"box":{"x":116,"y":366,"width":651,"height":12}},{"id":"d164c8f3-686a-46b9-8d33-61b89f33d842","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules","page_number":232,"box":{"x":117,"y":397,"width":768,"height":12}},{"id":"9467ebbe-0800-4081-9421-4a064b189087","block_type":"box","text":"governing the taxation of interest rate swaps are not entirely clear and may require a Fund to treat","page_number":232,"box":{"x":116,"y":413,"width":733,"height":12}},{"id":"48ee4b1d-19a8-49fa-a530-4f9e68d5d317","block_type":"box","text":"payments received under such arrangements as ordinary income and to amortize payments made","page_number":232,"box":{"x":117,"y":428,"width":733,"height":12}},{"id":"947d9e20-50dd-4089-8e02-c5830f1d870e","block_type":"box","text":"under certain circumstances. Because payments received by a Fund in connection with swap","page_number":232,"box":{"x":117,"y":444,"width":697,"height":12}},{"id":"97f0a636-a66c-4bc1-9335-1ba21996cb3d","block_type":"box","text":"transactions will be taxable rather than tax-exempt and because swap payments made by a Fund will","page_number":232,"box":{"x":116,"y":459,"width":757,"height":12}},{"id":"11691b8e-a421-43cc-b021-dc66de8a1a3b","block_type":"box","text":"offset both taxable and tax-exempt gross income proportionately, they may result in increased taxable","page_number":232,"box":{"x":116,"y":475,"width":762,"height":12}},{"id":"3f0de005-4583-4f98-a3c8-cb7210be7f3c","block_type":"box","text":"distributions to shareholders.","page_number":232,"box":{"x":116,"y":490,"width":220,"height":10}},{"id":"d16a3002-7e0c-42a5-8c37-5f2da7612ee0","block_type":"box","text":"Please see Part I of your Fund’s SAI for certain state tax information relevant to an investment in","page_number":232,"box":{"x":117,"y":521,"width":721,"height":12}},{"id":"a3c927da-da04-4812-be94-3d53710482b3","block_type":"box","text":"BlackRock California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund,","page_number":232,"box":{"x":117,"y":537,"width":731,"height":12}},{"id":"a2701d51-ab7d-4919-9d23-7c88a061c412","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund and BlackRock Pennsylvania Municipal Bond","page_number":232,"box":{"x":117,"y":552,"width":725,"height":12}},{"id":"f58a9668-d9f3-45d7-aff4-19f3edb4a601","block_type":"box","text":"Fund, as well as information on economic conditions within each applicable state.","page_number":232,"box":{"x":117,"y":568,"width":608,"height":12}},{"id":"389c8332-d5fc-40ac-951e-1cdb7edb9c0f","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master","page_number":232,"box":{"x":117,"y":599,"width":723,"height":12}},{"id":"964a8ccf-35b5-4316-a19d-de9696c06d4a","block_type":"box","text":"Portfolio in which it has invested for purposes of satisfying various qualification requirements of the","page_number":232,"box":{"x":117,"y":614,"width":737,"height":12}},{"id":"f79aee32-ab8b-41c0-a139-7467d1dfea70","block_type":"box","text":"Code applicable to regulated investment companies. Each Master Portfolio is classified either as a","page_number":232,"box":{"x":117,"y":630,"width":734,"height":12}},{"id":"1f2dfb91-d7ad-4888-9153-2a134c0e3cf3","block_type":"box","text":"partnership or a separate disregarded entity (depending on the particular Master Portfolio) for U.S.","page_number":232,"box":{"x":117,"y":645,"width":734,"height":12}},{"id":"35ff3327-d869-4b51-9358-a3adc69a7a65","block_type":"box","text":"federal income tax purposes. If applicable tax provisions were to change the classification of a Master","page_number":232,"box":{"x":116,"y":661,"width":755,"height":12}},{"id":"1883dbc0-c5b0-4a13-a0e4-71472b4997f5","block_type":"box","text":"Portfolio, then the Board of Directors of a Feeder Fund would determine, in its discretion, the","page_number":232,"box":{"x":117,"y":676,"width":686,"height":11}},{"id":"86611052-30d5-4cfb-814c-a44c4c924f62","block_type":"box","text":"appropriate course of action for the Feeder Fund. One possible course of action would be to withdraw","page_number":232,"box":{"x":116,"y":692,"width":755,"height":12}},{"id":"1dce5002-a779-4f38-b502-6836020d4c3c","block_type":"box","text":"the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to","page_number":232,"box":{"x":116,"y":707,"width":717,"height":12}},{"id":"b5630939-bf1f-478b-aba6-28928a8c3fbb","block_type":"box","text":"manage the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder","page_number":232,"box":{"x":117,"y":723,"width":758,"height":12}},{"id":"d1afb778-1286-417d-8e2e-3136b6fbf5a5","block_type":"box","text":"Fund.","page_number":232,"box":{"x":117,"y":738,"width":40,"height":10}},{"id":"46660934-d27a-453a-bb12-e53fa98f96c7","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states","page_number":232,"box":{"x":116,"y":769,"width":764,"height":12}},{"id":"3b74850d-e562-4b4e-afdc-f26bc3d4da23","block_type":"box","text":"exempt from state income taxation dividends paid by regulated investment companies that are derived","page_number":232,"box":{"x":116,"y":785,"width":759,"height":12}},{"id":"3c262cb4-72dc-4014-bf29-4cebd56f3725","block_type":"box","text":"from interest on U.S. government obligations. State law varies as to whether dividend income","page_number":232,"box":{"x":116,"y":800,"width":693,"height":12}},{"id":"15d8d0d8-9be7-41e8-855f-566cca91ed2c","block_type":"box","text":"attributable to U.S. government obligations is exempt from state income tax.","page_number":232,"box":{"x":116,"y":816,"width":563,"height":12}},{"id":"9c7ac971-23a9-4c6e-9396-fe3fff3d1561","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to","page_number":232,"box":{"x":116,"y":847,"width":747,"height":12}},{"id":"ab066d56-607d-4c0c-b88c-58203bf38941","block_type":"box","text":"federal, foreign, state or local taxes with respect to their Fund. Foreign investors should consider","page_number":232,"box":{"x":116,"y":862,"width":721,"height":12}},{"id":"e36a5923-2fe4-42ef-8efd-d44a4f7a8293","block_type":"box","text":"applicable foreign taxes in their evaluation of an investment in a Fund.","page_number":232,"box":{"x":116,"y":878,"width":525,"height":12}},{"id":"62bfc45c-97d2-48e3-b91a-df03b4f40443","block_type":"box","text":"II-173","page_number":232,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"dc39838b-af79-4e0e-950f-0c0ff56de695","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":232,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f67311ef-c854-4286-87aa-e524b7c068a6","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and","page_number":233,"box":{"x":116,"y":87,"width":760,"height":12}},{"id":"6f081460-de22-48ee-9b40-b9bc8d3cdd09","block_type":"box","text":"the regulations issued thereunder as in effect on the date of this SAI. Future legislative or","page_number":233,"box":{"x":116,"y":102,"width":667,"height":13}},{"id":"2475ddda-df1c-4f00-bd5d-f2f8be6c2434","block_type":"box","text":"administrative changes or court decisions may significantly change the conclusions expressed in this","page_number":233,"box":{"x":116,"y":118,"width":753,"height":12}},{"id":"5f40f586-d608-4fb3-89ff-dd5247ebb5ec","block_type":"box","text":"discussion, and any such changes or decisions may have a retroactive effect.","page_number":233,"box":{"x":116,"y":134,"width":581,"height":12}},{"id":"c0774d42-54f6-49d4-8f14-0c9087e87f09","block_type":"box","text":"P","page_number":233,"box":{"x":424,"y":180,"width":9,"height":9}},{"id":"c912e264-8f7f-486c-87e3-0627f877c2aa","block_type":"box","text":"ERFORMANCE","page_number":233,"box":{"x":435,"y":182,"width":96,"height":8}},{"id":"c9c8ba20-ab60-41e9-9030-b537415337a4","block_type":"box","text":"D","page_number":233,"box":{"x":531,"y":180,"width":17,"height":9}},{"id":"806395d7-5373-4459-952d-65f0a4a54aee","block_type":"box","text":"ATA","page_number":233,"box":{"x":548,"y":182,"width":28,"height":7}},{"id":"d152fbb1-6739-49c6-b4c6-a34be3a2964f","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":233,"box":{"x":117,"y":211,"width":767,"height":12}},{"id":"8e53cd95-2638-41f5-be4d-dad17a5e3eaf","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or","page_number":233,"box":{"x":116,"y":227,"width":723,"height":12}},{"id":"141f978f-aa6f-403d-a3ab-ea5e632c1b0f","block_type":"box","text":"prospective shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s","page_number":233,"box":{"x":117,"y":242,"width":713,"height":12}},{"id":"de4ba702-3ef0-4381-8314-419d86e4d184","block_type":"box","text":"historical performance and is not intended to indicate future performance. Average annual total return","page_number":233,"box":{"x":117,"y":258,"width":757,"height":12}},{"id":"9b8a6e15-9f7c-4672-804e-105b988bf860","block_type":"box","text":"is determined separately for each class of shares in accordance with a formula specified by the","page_number":233,"box":{"x":117,"y":273,"width":710,"height":12}},{"id":"5b2a2362-dc2e-4248-bf6e-8ed90745c15d","block_type":"box","text":"Commission.","page_number":233,"box":{"x":117,"y":289,"width":101,"height":9}},{"id":"ab9bee9a-0cbc-44b2-8578-d723b1fc96bb","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding","page_number":233,"box":{"x":116,"y":320,"width":767,"height":12}},{"id":"3bf0a85f-6895-4c5f-9ba8-240a6c494c5e","block_type":"box","text":"the average annual compounded rates of return (based on net investment income and any realized","page_number":233,"box":{"x":116,"y":335,"width":741,"height":12}},{"id":"df5a8692-b18c-4bb5-964c-bfa7ea8ddb15","block_type":"box","text":"and unrealized capital gains or losses on portfolio investments over such periods) that would equate","page_number":233,"box":{"x":116,"y":351,"width":748,"height":12}},{"id":"3b839f85-9923-48e1-96ce-362813c2c61b","block_type":"box","text":"the initial amount invested to the redeemable value of such investment at the end of each period.","page_number":233,"box":{"x":116,"y":366,"width":725,"height":12}},{"id":"3d060156-7989-49fd-b639-ef35e1e9f27a","block_type":"box","text":"Average annual total return before taxes is computed assuming all dividends are reinvested and taking","page_number":233,"box":{"x":116,"y":382,"width":768,"height":12}},{"id":"b7bee3c8-6d4d-4722-8bf7-817c37b628ff","block_type":"box","text":"into account all applicable recurring and nonrecurring expenses, including the maximum sales charge,","page_number":233,"box":{"x":117,"y":397,"width":762,"height":12}},{"id":"74059835-5067-4816-8057-0bd6b9801363","block_type":"box","text":"in the case of front-end load shares, and the CDSC that would be applicable to a complete redemption","page_number":233,"box":{"x":117,"y":413,"width":765,"height":12}},{"id":"986094cf-1114-4d51-a835-282652cdb853","block_type":"box","text":"of the investment at the end of the specified period in the case of CDSC shares, but does not take into","page_number":233,"box":{"x":116,"y":428,"width":764,"height":12}},{"id":"10a59679-f156-4948-907e-54ad722593e8","block_type":"box","text":"account taxes payable on dividends or on redemption.","page_number":233,"box":{"x":116,"y":444,"width":408,"height":12}},{"id":"90f685a9-c9ab-4fdf-847f-71edc516dccb","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are","page_number":233,"box":{"x":116,"y":475,"width":715,"height":12}},{"id":"02dceae4-7650-43c0-bfaa-e9fa8d37c5a9","block_type":"box","text":"computed by finding the average annual compounded rates of return that would equate the initial","page_number":233,"box":{"x":116,"y":490,"width":724,"height":12}},{"id":"7b956ead-4750-4dcb-83a6-f34cb5d2acf4","block_type":"box","text":"amount invested to the ending value of such investment at the end of each period assuming payment","page_number":233,"box":{"x":116,"y":506,"width":757,"height":12}},{"id":"25dc8cc3-1aa8-4d4c-9ef2-061d67706eec","block_type":"box","text":"of taxes on dividends received during such period. Average annual total return after taxes on dividends","page_number":233,"box":{"x":116,"y":521,"width":769,"height":12}},{"id":"9f06d62c-bc8a-44f6-a5c2-e43ccd0069bd","block_type":"box","text":"is computed assuming all dividends, less the taxes due on such dividends, are reinvested and taking","page_number":233,"box":{"x":117,"y":537,"width":751,"height":12}},{"id":"4859e855-a88e-4f3b-b323-6cb4b2526065","block_type":"box","text":"into account all applicable recurring and nonrecurring expenses, including the maximum sales charge,","page_number":233,"box":{"x":117,"y":552,"width":762,"height":12}},{"id":"3556785a-eb61-4b76-9f65-377d6b107cb6","block_type":"box","text":"in the case of front-end load shares and the CDSC that would be applicable to a complete redemption","page_number":233,"box":{"x":117,"y":568,"width":760,"height":12}},{"id":"0ccfe857-d25e-4c47-aba3-b7ff5cf70dfa","block_type":"box","text":"of the investment at the end of the specified period in the case of CDSC shares. The taxes due on","page_number":233,"box":{"x":116,"y":583,"width":733,"height":12}},{"id":"9ce94bbc-3ee9-48c7-a34a-8b5c42d45fec","block_type":"box","text":"dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal","page_number":233,"box":{"x":116,"y":599,"width":732,"height":12}},{"id":"249c10d3-6e4e-462e-8766-fc265ae6a09d","block_type":"box","text":"individual income tax rates in effect on the reinvestment date for that dividend. The rates used","page_number":233,"box":{"x":117,"y":614,"width":702,"height":10}},{"id":"5312a657-3bce-4c43-970a-80e4c841876a","block_type":"box","text":"correspond to the tax character (including eligibility for the maximum 20% tax rate applicable to","page_number":233,"box":{"x":116,"y":630,"width":711,"height":12}},{"id":"aa9f4c36-0cb2-4050-9c88-5aed2aa21c50","block_type":"box","text":"qualified dividend income) of each dividend. The taxable amount and tax character of each dividend","page_number":233,"box":{"x":116,"y":645,"width":746,"height":12}},{"id":"80601c3f-f658-4a3b-809f-4ca93e1612d8","block_type":"box","text":"are specified by each Fund on the dividend declaration date, but may be adjusted to reflect subsequent","page_number":233,"box":{"x":116,"y":661,"width":767,"height":12}},{"id":"5d7307eb-5c6d-4d03-868a-27eedbe90068","block_type":"box","text":"recharacterizations of distributions. The applicable tax rates may vary over the measurement period.","page_number":233,"box":{"x":117,"y":676,"width":743,"height":12}},{"id":"aec65d69-1a3c-4cfa-8ac5-e76839c64970","block_type":"box","text":"The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign credits, are","page_number":233,"box":{"x":116,"y":692,"width":766,"height":12}},{"id":"168bfa97-3a19-4a26-b367-0a23aa170350","block_type":"box","text":"taken into account according to U.S. federal tax law. The ending value is determined assuming","page_number":233,"box":{"x":116,"y":707,"width":703,"height":12}},{"id":"a448cc6d-e4fd-4797-a352-ae29d6502d5f","block_type":"box","text":"complete redemption at the end of the applicable periods with no tax consequences associated with","page_number":233,"box":{"x":116,"y":723,"width":740,"height":12}},{"id":"00e03ee6-b6f4-439a-b41c-3e77da328841","block_type":"box","text":"such redemption.","page_number":233,"box":{"x":116,"y":738,"width":127,"height":12}},{"id":"34ce3a13-a59d-4ea0-b208-a519b37d5048","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the","page_number":233,"box":{"x":116,"y":769,"width":709,"height":12}},{"id":"04b1563c-a1fc-4aa2-8ac0-5ef28d93a766","block_type":"box","text":"specified periods are computed by finding the average annual compounded rates of return that would","page_number":233,"box":{"x":116,"y":785,"width":751,"height":12}},{"id":"069188f3-94af-4694-be94-1bb9f1fd9b7f","block_type":"box","text":"equate the initial amount invested to the ending value of such investment at the end of each period","page_number":233,"box":{"x":116,"y":800,"width":732,"height":12}},{"id":"57799d76-8b33-4521-9fba-1e1a3d93fac7","block_type":"box","text":"assuming payment of taxes on dividends received during such period as well as on complete","page_number":233,"box":{"x":116,"y":816,"width":690,"height":12}},{"id":"d6dc568f-3660-40e8-ae0f-482866c80341","block_type":"box","text":"redemption. Average annual total return after taxes on distributions and redemption is computed","page_number":233,"box":{"x":117,"y":831,"width":718,"height":12}},{"id":"90ddba02-53a9-468c-ac6a-88955ce385c1","block_type":"box","text":"assuming all dividends, less the taxes due on such dividends, are reinvested and taking into account","page_number":233,"box":{"x":116,"y":847,"width":752,"height":12}},{"id":"53728760-1e9b-4ac6-a75c-ce4d7fe64b64","block_type":"box","text":"all applicable recurring and nonrecurring expenses, including the maximum sales charge in the case of","page_number":233,"box":{"x":116,"y":862,"width":768,"height":12}},{"id":"0aaf007d-8e2e-41b7-bee8-c8c128efb24b","block_type":"box","text":"front-end load shares and the CDSC that would be applicable to a complete redemption of the","page_number":233,"box":{"x":116,"y":878,"width":703,"height":12}},{"id":"e0e22543-c517-4e6e-ac77-0c0a9f872b59","block_type":"box","text":"II-174","page_number":233,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"73d58375-48e0-46cb-b640-4e0a226b8df3","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":233,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d97b1c39-ad41-4c89-9f40-f732217929bb","block_type":"box","text":"investment at the end of the specified period in the case of CDSC shares and assuming, for all classes","page_number":234,"box":{"x":117,"y":87,"width":767,"height":12}},{"id":"1abfaced-0209-4786-a2c5-fe82b34f7cef","block_type":"box","text":"of shares, complete redemption and payment of taxes due on such redemption. The ending value is","page_number":234,"box":{"x":116,"y":102,"width":746,"height":13}},{"id":"1f45755d-e816-4df1-a24b-bd55ac872bec","block_type":"box","text":"determined assuming complete redemption at the end of the applicable periods, subtracting capital","page_number":234,"box":{"x":116,"y":118,"width":739,"height":12}},{"id":"59a74149-4b81-4c51-9174-1af7e9288647","block_type":"box","text":"gains taxes resulting from the redemption and adding the presumed tax benefit from capital losses","page_number":234,"box":{"x":116,"y":134,"width":735,"height":12}},{"id":"32c83f61-56f2-4492-ab40-dbc77623a190","block_type":"box","text":"resulting from redemption. The taxes due on dividends and on the deemed redemption are calculated","page_number":234,"box":{"x":117,"y":149,"width":758,"height":12}},{"id":"684462b4-cf04-456b-82cc-d9432fc6258a","block_type":"box","text":"by applying the highest applicable marginal U.S. federal individual income tax rates in effect on the","page_number":234,"box":{"x":117,"y":165,"width":737,"height":12}},{"id":"e7c8c3fd-b377-4082-90b5-c6bf1b1a4471","block_type":"box","text":"reinvestment and/or the redemption date. The rates used correspond to the tax character (including","page_number":234,"box":{"x":117,"y":180,"width":743,"height":12}},{"id":"ba90ccac-f3a4-46da-91cd-a825bd884f76","block_type":"box","text":"eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each component of","page_number":234,"box":{"x":116,"y":196,"width":762,"height":12}},{"id":"f4d44760-8a81-4e50-b096-70feaf0e1043","block_type":"box","text":"each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":234,"box":{"x":116,"y":211,"width":673,"height":12}},{"id":"d24e349a-6301-44d7-8ab7-7ffc3aa16eed","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such","page_number":234,"box":{"x":117,"y":227,"width":767,"height":11}},{"id":"bec93d6f-0472-4b19-aae8-b18f5e6ad5c4","block_type":"box","text":"as foreign tax credits, are taken into account according to federal law.","page_number":234,"box":{"x":116,"y":242,"width":522,"height":12}},{"id":"f4fcd484-9422-4762-b3c5-fce512092354","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":234,"box":{"x":116,"y":273,"width":760,"height":12}},{"id":"7cbd716b-e41b-48ea-b108-d05a51ff404a","block_type":"box","text":"performance data, both as a percentage and as a dollar amount based on a hypothetical investment of","page_number":234,"box":{"x":117,"y":289,"width":766,"height":12}},{"id":"a10558a6-c80e-42dd-94d3-77d91d6842f1","block_type":"box","text":"$1,000 or some other amount, for various periods other than those noted in Part I of each Fund’s SAI.","page_number":234,"box":{"x":116,"y":303,"width":761,"height":13}},{"id":"9018b4eb-c692-44d5-ae6b-2c5c26ca4cd4","block_type":"box","text":"Such data will be computed as described above, except that (1) as required by the periods of the","page_number":234,"box":{"x":116,"y":320,"width":724,"height":12}},{"id":"48299f71-c497-4dbb-bc4c-357535e850fb","block_type":"box","text":"quotations, actual annual, annualized or aggregate data, rather than average annual data, may be","page_number":234,"box":{"x":116,"y":335,"width":733,"height":12}},{"id":"e10c63c7-5ca6-4ca2-b389-1a508b564cdc","block_type":"box","text":"quoted and (2) the maximum applicable sales charges will not be included with respect to annual or","page_number":234,"box":{"x":116,"y":351,"width":743,"height":12}},{"id":"1d385b54-5597-4607-9a2a-51afcb94d1f1","block_type":"box","text":"annualized rates of return calculations. Aside from the impact on the performance data calculations of","page_number":234,"box":{"x":116,"y":366,"width":760,"height":12}},{"id":"742e45b7-e14d-4994-89d3-e14a244a9047","block_type":"box","text":"including or excluding the maximum applicable sales charges, actual annual or annualized total return","page_number":234,"box":{"x":117,"y":382,"width":760,"height":12}},{"id":"8696780e-5e18-4585-99be-dad5ed39cc25","block_type":"box","text":"data generally will be lower than average annual total return data since the average rates of return","page_number":234,"box":{"x":116,"y":397,"width":734,"height":12}},{"id":"0fed4409-7676-4936-965e-4211aa1aaf9c","block_type":"box","text":"reflect compounding of return; aggregate total return data generally will be higher than average annual","page_number":234,"box":{"x":117,"y":413,"width":764,"height":12}},{"id":"2e7a3a56-d2d0-4a61-94cd-c28035483faf","block_type":"box","text":"total return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":234,"box":{"x":116,"y":428,"width":755,"height":12}},{"id":"bd1de257-a271-44f2-a339-74fff98a4973","block_type":"box","text":"Yield quotations will be computed based on a 30-day period by dividing (a) the net income based on","page_number":234,"box":{"x":116,"y":459,"width":748,"height":12}},{"id":"cac14a1f-326a-488c-b8eb-a20347210b80","block_type":"box","text":"the yield of each security earned during the period by (b) the average daily number of shares","page_number":234,"box":{"x":116,"y":475,"width":694,"height":12}},{"id":"41f0457b-a60d-4898-8907-0af551379fc8","block_type":"box","text":"outstanding during the period that were entitled to receive dividends multiplied by the maximum","page_number":234,"box":{"x":116,"y":490,"width":712,"height":12}},{"id":"86f68292-5bbf-404f-9ef7-7f2e1efc169b","block_type":"box","text":"offering price per share on the last day of the period. Tax equivalent yield quotations will be computed","page_number":234,"box":{"x":116,"y":506,"width":760,"height":12}},{"id":"89f9f50d-654c-49e4-90f3-c8726bb0fa17","block_type":"box","text":"by dividing (a) the part of a Fund’s yield that is tax-exempt by (b) one minus a stated tax rate and","page_number":234,"box":{"x":117,"y":521,"width":723,"height":12}},{"id":"71bca307-16b4-419d-85ce-fdd8ecaf65d5","block_type":"box","text":"adding the result to that part, if any, of the Fund’s yield that is not tax-exempt.","page_number":234,"box":{"x":116,"y":537,"width":580,"height":12}},{"id":"d7783bb8-0e0a-4e41-891b-08fb88cc4b70","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s","page_number":234,"box":{"x":116,"y":568,"width":728,"height":12}},{"id":"caabb364-fcc5-4363-81fc-21f46910096b","block_type":"box","text":"portfolio, a Fund’s operating expenses and the amount of realized and unrealized net capital gains or","page_number":234,"box":{"x":117,"y":583,"width":754,"height":12}},{"id":"0ff273f7-5402-423b-a842-88a4cc11033e","block_type":"box","text":"losses during the period. The value of an investment in a Fund will fluctuate and an investor’s shares,","page_number":234,"box":{"x":117,"y":599,"width":756,"height":12}},{"id":"7dd7a2db-1dcf-44bc-a0a7-a143b2fde2cb","block_type":"box","text":"when redeemed, may be worth more or less than their original cost.","page_number":234,"box":{"x":116,"y":614,"width":507,"height":12}},{"id":"4ea42560-4f20-417d-94b9-5d638102f935","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","page_number":234,"box":{"x":117,"y":645,"width":750,"height":12}},{"id":"08db7e82-7754-4aa4-b8a3-1cd1bc41b95c","block_type":"box","text":"CDSC in the case of CDSC shares applicable to certain investors, as described under “Purchase of","page_number":234,"box":{"x":117,"y":661,"width":738,"height":12}},{"id":"12419dd6-d655-454c-8146-256f1f8a80d9","block_type":"box","text":"Shares” and “Redemption of Shares,” respectively, the total return data quoted by a Fund in","page_number":234,"box":{"x":116,"y":676,"width":681,"height":12}},{"id":"45a5cc78-11fa-44f2-9eb2-48516f97631c","block_type":"box","text":"advertisements directed to such investors may take into account the reduced, and not the maximum,","page_number":234,"box":{"x":116,"y":692,"width":746,"height":12}},{"id":"a30211b3-1120-4bf4-9ffb-ad96021bb90d","block_type":"box","text":"sales charge or may take into account the CDSC waiver and, therefore, may reflect greater total return","page_number":234,"box":{"x":116,"y":707,"width":761,"height":12}},{"id":"38429c69-9858-4ccb-ab99-dd4cfefbb481","block_type":"box","text":"since, due to the reduced sales charges or the waiver of sales charges, a lower amount of expenses is","page_number":234,"box":{"x":116,"y":723,"width":762,"height":12}},{"id":"ad78b34c-9231-420b-ad2f-c4451f307cf4","block_type":"box","text":"deducted.","page_number":234,"box":{"x":116,"y":738,"width":72,"height":10}},{"id":"0b667d7f-f3d6-4548-ab93-4328df51c8bf","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark","page_number":234,"box":{"x":116,"y":769,"width":731,"height":12}},{"id":"2d688597-7ac5-4834-86a8-ac35f1aa4d66","block_type":"box","text":"index indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average,","page_number":234,"box":{"x":117,"y":785,"width":758,"height":12}},{"id":"fe3236d8-484c-4f47-83d3-acb8463751d3","block_type":"box","text":"or to other published indices, or to performance data published by Lipper Inc., Morningstar, Inc.","page_number":234,"box":{"x":116,"y":800,"width":706,"height":12}},{"id":"2a7a825e-a0c3-45f3-b5c7-c6ff8de8515b","block_type":"box","text":"(“Morningstar”),","page_number":234,"box":{"x":117,"y":816,"width":113,"height":12}},{"id":"4693d764-e0e3-4b18-a437-3b3e664d28e7","block_type":"box","text":"Money Magazine, U.S. News & World Report, BusinessWeek, Forbes Magazine,","page_number":234,"box":{"x":237,"y":816,"width":600,"height":12}},{"id":"94fd9276-4c07-46f1-bc28-0f89bc70beb7","block_type":"box","text":"Fortune Magazine","page_number":234,"box":{"x":116,"y":831,"width":140,"height":12}},{"id":"d8df9b36-ed14-4c9b-aa52-974da98bfc6f","block_type":"box","text":"or other industry publications. When comparing its performance to a market index, a","page_number":234,"box":{"x":257,"y":831,"width":629,"height":12}},{"id":"dd8a52c2-0432-472a-8528-d8fca775766d","block_type":"box","text":"Fund may refer to various statistical measures derived from the historical performance of a Fund and","page_number":234,"box":{"x":117,"y":847,"width":753,"height":12}},{"id":"aed6d303-c793-4b61-9d32-d84392d4785b","block_type":"box","text":"the index, such as standard deviation and beta. As with other performance data, performance","page_number":234,"box":{"x":116,"y":862,"width":700,"height":12}},{"id":"f9822b50-b82e-43f3-b41f-7c25f9389bb0","block_type":"box","text":"comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":234,"box":{"x":116,"y":878,"width":717,"height":12}},{"id":"bbc9ef9e-dcb5-46de-bc0a-8a2ae60e5b8b","block_type":"box","text":"II-175","page_number":234,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"ccdf352e-6ff9-4999-bbbc-f41ceff7fd22","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":234,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"335f4e88-675d-467b-bee1-6922cc5a0da0","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted","page_number":235,"box":{"x":117,"y":87,"width":701,"height":12}},{"id":"ce94f3d4-0230-4c8d-8af0-d95091b8070f","block_type":"box","text":"performance ratings assigned by Morningstar in advertising or supplemental sales literature. From time","page_number":235,"box":{"x":117,"y":102,"width":769,"height":13}},{"id":"d7555b5b-1c6a-4d95-b398-3f8ffdd1bc9e","block_type":"box","text":"to time a Fund may quote in advertisements or other materials other applicable measures of Fund","page_number":235,"box":{"x":116,"y":118,"width":732,"height":12}},{"id":"843bac52-bf08-4978-ab6b-09a71d0e70fb","block_type":"box","text":"performance and may also make reference to awards that may be given to the Manager. Certain","page_number":235,"box":{"x":117,"y":134,"width":721,"height":12}},{"id":"044daeb5-eed6-4bc7-af3c-8596a088bfc6","block_type":"box","text":"Funds may also compare their performance to composite indices developed by Fund management.","page_number":235,"box":{"x":117,"y":149,"width":742,"height":12}},{"id":"662dabf6-ce33-4092-8f3a-8d295fc3a499","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to","page_number":235,"box":{"x":116,"y":180,"width":737,"height":12}},{"id":"118e3638-5be4-4122-885a-ff010a08c935","block_type":"box","text":"achieve its investment objectives. This may include information about past, current or possible","page_number":235,"box":{"x":116,"y":196,"width":704,"height":12}},{"id":"6da89fdf-6f57-44c1-905d-61fce3d0c508","block_type":"box","text":"economic, market, political or other conditions, descriptive information or general principles of investing","page_number":235,"box":{"x":116,"y":211,"width":770,"height":12}},{"id":"6cca6743-c67d-4cc3-821d-0877daa63930","block_type":"box","text":"such as asset allocation, diversification and risk tolerance, discussion of a Fund’s portfolio composition,","page_number":235,"box":{"x":116,"y":227,"width":771,"height":11}},{"id":"64374160-0a32-4990-811e-ba840e7e0a2b","block_type":"box","text":"investment philosophy, strategy or investment techniques, comparisons of the Fund’s performance or","page_number":235,"box":{"x":117,"y":242,"width":757,"height":12}},{"id":"bf2d611f-6ba0-454a-8bfc-17b72d0fe5be","block_type":"box","text":"portfolio composition to that of other funds or types of investments, indices relevant to the comparison","page_number":235,"box":{"x":117,"y":258,"width":760,"height":12}},{"id":"edca2065-1d0c-4f80-9092-7c158b24f8eb","block_type":"box","text":"being made, or to a hypothetical or model portfolio. A Fund may also quote various measures of","page_number":235,"box":{"x":117,"y":273,"width":716,"height":12}},{"id":"6c6bfa33-65b8-4680-967e-4e01dc8bb3d5","block_type":"box","text":"volatility and benchmark correlation in advertising and other materials, and may compare these","page_number":235,"box":{"x":116,"y":289,"width":711,"height":12}},{"id":"a1174134-3f3d-4173-a9ad-177a65cb0c81","block_type":"box","text":"measures to those of other funds or types of investments.","page_number":235,"box":{"x":117,"y":304,"width":432,"height":12}},{"id":"e5cdd4ae-27b0-4765-a042-1a8b1c706dc5","block_type":"box","text":"P","page_number":235,"box":{"x":342,"y":351,"width":10,"height":9}},{"id":"cbfe7920-186d-4070-ad38-c3cc9d47c227","block_type":"box","text":"ROXY","page_number":235,"box":{"x":353,"y":353,"width":38,"height":7}},{"id":"fe649fb8-f728-4eeb-adf9-c452d25c7bca","block_type":"box","text":"Y V","page_number":235,"box":{"x":391,"y":351,"width":16,"height":9}},{"id":"cfd1bd88-952f-4722-a1f4-441c9c66a602","block_type":"box","text":"OTING","page_number":235,"box":{"x":407,"y":353,"width":42,"height":7}},{"id":"f0c1c22e-e29a-4c9d-9a9c-2d942ce03a65","block_type":"box","text":"P","page_number":235,"box":{"x":450,"y":351,"width":15,"height":9}},{"id":"01f2f8fd-8c54-434d-8fef-60e9e7c62e7c","block_type":"box","text":"OLICIES","page_number":235,"box":{"x":467,"y":353,"width":53,"height":7}},{"id":"be115942-0d7d-4940-b77e-78cc917e8c3a","block_type":"box","text":"AND","page_number":235,"box":{"x":525,"y":353,"width":29,"height":7}},{"id":"f902912b-9961-4faa-9e07-60a656390e37","block_type":"box","text":"P","page_number":235,"box":{"x":555,"y":351,"width":15,"height":9}},{"id":"60bc27c4-9e1d-440d-a8e5-43e05132c1dd","block_type":"box","text":"ROCEDURES","page_number":235,"box":{"x":572,"y":353,"width":85,"height":7}},{"id":"4b487d7e-fa30-4119-b9bb-0e0e54cd4c99","block_type":"box","text":"The Board of Directors of the Funds has delegated the voting of proxies for the Funds’ securities to the","page_number":235,"box":{"x":116,"y":382,"width":768,"height":12}},{"id":"b5a3fcf4-c402-4e24-9b60-a578b004f7e5","block_type":"box","text":"Manager pursuant to (i) the Open-End Active and Fixed Income Index Fund Proxy Voting Policy (the","page_number":235,"box":{"x":117,"y":397,"width":749,"height":12}},{"id":"5fbded0e-a29b-4670-96e3-6fa8387c7423","block_type":"box","text":"“Active Fund Proxy Voting Policy”), with respect to certain Funds, and (ii) the Index Equity Fund Proxy","page_number":235,"box":{"x":116,"y":413,"width":761,"height":12}},{"id":"22218177-1311-45de-8c6f-3d3f980ef615","block_type":"box","text":"Voting Policy, with respect to certain other Funds, as applicable. Please refer to Part I of this SAI,","page_number":235,"box":{"x":116,"y":428,"width":727,"height":12}},{"id":"fd047fd9-7473-4d90-ab37-f5a0d354cffe","block_type":"box","text":"which discloses the policy applicable to each Fund.","page_number":235,"box":{"x":116,"y":444,"width":385,"height":12}},{"id":"6a5d78a5-49ce-47cb-8910-5d8aec851740","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the","page_number":235,"box":{"x":116,"y":475,"width":756,"height":12}},{"id":"c460680f-92db-4017-a9d8-787aef83eca0","block_type":"box","text":"BlackRock Active Investment Stewardship — Global Engagement and Voting Guidelines (the “BAIS","page_number":235,"box":{"x":117,"y":490,"width":744,"height":12}},{"id":"342f3f2d-69b5-491e-ac1e-20c85a69db52","block_type":"box","text":"Guidelines”). Certain of such Funds, as listed within the Active Fund Proxy Voting Policy and as","page_number":235,"box":{"x":117,"y":506,"width":713,"height":12}},{"id":"b6415f8e-7a2b-42a9-9cd9-63430b03a02f","block_type":"box","text":"disclosed in Part I of this SAI, follow supplemental guidelines within the BAIS Guidelines that are","page_number":235,"box":{"x":116,"y":521,"width":721,"height":12}},{"id":"81d02ed9-93ef-462d-9689-f0baaece9bc6","block_type":"box","text":"applicable to certain climate and decarbonization issues (the “BAIS Climate and Decarbonization","page_number":235,"box":{"x":116,"y":537,"width":724,"height":12}},{"id":"85378146-079f-485c-9887-1d4e9a208e8b","block_type":"box","text":"Stewardship Guidelines”).","page_number":235,"box":{"x":116,"y":552,"width":197,"height":12}},{"id":"117da8e0-e5b3-4607-8aed-9c34105bc946","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has","page_number":235,"box":{"x":116,"y":583,"width":709,"height":12}},{"id":"9b95a460-1e6d-4443-9f29-5064b774f3c2","block_type":"box","text":"adopted the BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the","page_number":235,"box":{"x":116,"y":599,"width":743,"height":12}},{"id":"7afa65ee-7e32-41c4-9b01-0fdb2fed75d0","block_type":"box","text":"Global Principles for Benchmark Policies, regional voting guidelines, and engagement priorities, which","page_number":235,"box":{"x":117,"y":614,"width":762,"height":12}},{"id":"9be2b092-99e1-4a55-9571-8c08bcd8c3b8","block_type":"box","text":"are each available upon request. In addition, certain of such Funds, as listed within the Index Equity","page_number":235,"box":{"x":116,"y":630,"width":745,"height":12}},{"id":"99ab0bb3-a561-4385-9338-fd66dbdc1852","block_type":"box","text":"Fund Proxy Voting Policy and as disclosed in Part I of this SAI, follow supplemental guidelines that are","page_number":235,"box":{"x":117,"y":645,"width":765,"height":12}},{"id":"a82a94cf-e816-4d14-a663-bd50a11c9523","block_type":"box","text":"applicable to certain climate and decarbonization issues (the “BIS Climate and Decarbonization","page_number":235,"box":{"x":116,"y":661,"width":707,"height":12}},{"id":"3eab6146-5e92-4ece-b175-fd6173242c16","block_type":"box","text":"Stewardship Guidelines”).","page_number":235,"box":{"x":116,"y":676,"width":191,"height":12}},{"id":"05ea1b25-4522-47e6-8b5c-e6b1c894a397","block_type":"box","text":"If a Fund invests in an underlying fund managed by BlackRock, the Fund will use its proxy voting policy","page_number":235,"box":{"x":117,"y":707,"width":765,"height":12}},{"id":"cd2edba9-718e-4b97-8950-b7feff8b4660","block_type":"box","text":"when voting on proxies for the underlying fund while the underlying fund will use its proxy voting policy","page_number":235,"box":{"x":116,"y":723,"width":759,"height":12}},{"id":"3ede3a48-0c54-49a5-b045-3c9ead19038e","block_type":"box","text":"when voting proxies on investments the underlying fund holds. Therefore, the Fund may use the Active","page_number":235,"box":{"x":116,"y":738,"width":764,"height":12}},{"id":"2ce88455-951a-4c81-a330-95dde4fce630","block_type":"box","text":"Fund Proxy Voting Policy while an underlying fund may use the Index Equity Fund Proxy Voting Policy,","page_number":235,"box":{"x":117,"y":754,"width":762,"height":12}},{"id":"290e4b86-4014-4e2e-afc7-e0c06b12fe4e","block_type":"box","text":"and the opposite is also true.","page_number":235,"box":{"x":116,"y":769,"width":213,"height":12}},{"id":"794a05cb-d263-43a8-9994-d3ee37eb7d55","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS","page_number":235,"box":{"x":117,"y":800,"width":711,"height":12}},{"id":"b81ff22d-a418-459b-b822-477844965763","block_type":"box","text":"Guidelines, the Global Principles for Benchmark Policies and the BIS Climate and Decarbonization","page_number":235,"box":{"x":117,"y":816,"width":731,"height":12}},{"id":"169f349e-9b15-4dd0-aee1-722c2f57442e","block_type":"box","text":"Stewardship Guidelines are attached as Appendix B to this SAI. Only those guidelines that are","page_number":235,"box":{"x":116,"y":831,"width":706,"height":12}},{"id":"07ec6020-ad5e-44e8-abb3-0ec78b9a98fd","block_type":"box","text":"applicable to a particular Fund pursuant to the Active Fund Proxy Voting Policy or the Index Equity","page_number":235,"box":{"x":116,"y":847,"width":735,"height":12}},{"id":"46cafb66-88bd-4f62-83e7-0076fd314281","block_type":"box","text":"Fund Proxy Voting Policy are considered to form a part of the Fund’s SAI.","page_number":235,"box":{"x":117,"y":862,"width":551,"height":12}},{"id":"db6938a9-de6f-41bf-ac61-b3380edd7634","block_type":"box","text":"II-176","page_number":235,"box":{"x":479,"y":909,"width":41,"height":9}},{"id":"ab28cba0-c3a8-4db8-919a-37565fea5c35","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":235,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e09fa7d7-7df3-4f70-a721-63163f721dcc","block_type":"box","text":"Information on how each Fund voted proxies relating to portfolio securities during the most","page_number":236,"box":{"x":117,"y":87,"width":645,"height":12}},{"id":"3cdc3235-bb50-43d5-b28a-18bb4620cd9d","block_type":"box","text":"recent 12-month period ended June 30 is available without","page_number":236,"box":{"x":117,"y":103,"width":416,"height":11}},{"id":"532e1c91-caeb-42a1-a3cf-23088aae5871","block_type":"box","text":"t charge, (i) at www.blackrock.com/proxyrecords","page_number":236,"box":{"x":532,"y":102,"width":344,"height":13}},{"id":"b2fc5120-af3d-4bfb-b39a-5388050f4879","block_type":"box","text":"and (ii) on the Commission’s website at http://www.sec.gov.","page_number":236,"box":{"x":116,"y":118,"width":428,"height":12}},{"id":"db97cbd4-fb94-462a-a3c8-b27f389daa9d","block_type":"box","text":"G","page_number":236,"box":{"x":415,"y":165,"width":11,"height":9}},{"id":"16ad80ce-9b0b-48e0-af21-aa1146ae6b9a","block_type":"box","text":"ENERAL","page_number":236,"box":{"x":428,"y":167,"width":55,"height":7}},{"id":"db5956f6-c168-45ac-9aa0-82486ec6e618","block_type":"box","text":"I","page_number":236,"box":{"x":483,"y":165,"width":8,"height":9}},{"id":"1261417e-d0ca-46ad-b407-fc4584562881","block_type":"box","text":"NFORMATION","page_number":236,"box":{"x":494,"y":167,"width":90,"height":7}},{"id":"a0ae8e9b-e0e9-4fb5-adf4-0753681bf6f2","block_type":"box","text":"Description of Shares","page_number":236,"box":{"x":117,"y":196,"width":177,"height":11}},{"id":"dd6c1830-4b6f-4fcf-8cd9-5f0077459ba2","block_type":"box","text":"Shareholders of a Fund are entitled to one vote for each full share held and fractional votes for","page_number":236,"box":{"x":116,"y":219,"width":706,"height":9}},{"id":"184e5cce-c0c0-4a7c-8ef9-2bd81e8aaa74","block_type":"box","text":"fractional shares held in the election of Directors and generally on other matters submitted to the vote","page_number":236,"box":{"x":116,"y":234,"width":758,"height":12}},{"id":"a980d913-50fd-4a5e-94e1-54d703b7ecfe","block_type":"box","text":"of shareholders of the Fund. Shareholders of a class that bears distribution and/or service expenses","page_number":236,"box":{"x":116,"y":250,"width":748,"height":12}},{"id":"06d6bd99-4754-4be0-9da7-4cc2a5dd137f","block_type":"box","text":"have exclusive voting rights with respect to matters relating to such distribution and service","page_number":236,"box":{"x":117,"y":265,"width":679,"height":12}},{"id":"0cd7601d-34fa-4ebe-adaa-18c005ed146d","block_type":"box","text":"expenditures. Voting rights are not cumulative, so that the holders of more than 50% of the shares","page_number":236,"box":{"x":116,"y":281,"width":734,"height":12}},{"id":"6658f187-8b32-47e4-a577-fa3abdfda9b4","block_type":"box","text":"voting in the election of Directors can, if they choose to do so, elect all the Directors of a Fund, in which","page_number":236,"box":{"x":116,"y":296,"width":771,"height":12}},{"id":"51712184-1298-4161-b012-1c289480d577","block_type":"box","text":"event the holders of the remaining shares would be unable to elect any person as a Director.","page_number":236,"box":{"x":116,"y":312,"width":693,"height":12}},{"id":"9b1b022f-0e7e-468b-94f5-96808f57394a","block_type":"box","text":"No Fund intends to hold annual meetings of shareholders in any year in which the Investment","page_number":236,"box":{"x":117,"y":343,"width":698,"height":12}},{"id":"c79e0205-20a1-426f-9d09-0de516e16ec0","block_type":"box","text":"Company Act does not require shareholders to act upon any of the following matters: (i) election of","page_number":236,"box":{"x":117,"y":358,"width":736,"height":12}},{"id":"40d184e0-cf96-45df-b54d-a0c0ea5c343c","block_type":"box","text":"Directors; (ii) approval of a management agreement; (iii) approval of a distribution agreement; and","page_number":236,"box":{"x":117,"y":374,"width":732,"height":12}},{"id":"74462437-0a1f-4cae-b46a-25d5c89fd9c0","block_type":"box","text":"(iv) ratification of selection of independent accountants. Shares issued are fully paid and","page_number":236,"box":{"x":117,"y":389,"width":658,"height":12}},{"id":"b4d5cd17-4310-40f2-9a81-5ae76b4e2ea0","block_type":"box","text":"non-assessable and have no preemptive rights. Redemption and conversion rights are discussed","page_number":236,"box":{"x":117,"y":405,"width":726,"height":12}},{"id":"2807d895-ee8d-44f1-be3c-e4be057c974b","block_type":"box","text":"elsewhere herein and in each Fund’s Prospectus. Each share of each class of Common Stock is","page_number":236,"box":{"x":116,"y":420,"width":721,"height":12}},{"id":"432ebca5-7de2-4f6a-b9e1-0f17bb1ab615","block_type":"box","text":"entitled to participate equally in dividends and distributions declared by a Fund and in the net assets of","page_number":236,"box":{"x":116,"y":436,"width":766,"height":12}},{"id":"76ba30cd-5fa9-419f-8ae9-3ca559c0bba4","block_type":"box","text":"the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":236,"box":{"x":116,"y":451,"width":608,"height":12}},{"id":"592109c7-5211-48f3-af86-3cf01e0cf631","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting","page_number":236,"box":{"x":117,"y":482,"width":762,"height":12}},{"id":"90d46b05-bd4b-4912-b475-4f46e4ab4737","block_type":"box","text":"of shareholders be held upon the written request of a minimum percentage of the outstanding shares","page_number":236,"box":{"x":116,"y":498,"width":754,"height":12}},{"id":"8c13d240-c4a3-497b-a6e4-9b6cf8bb2d63","block_type":"box","text":"of the Fund entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":236,"box":{"x":116,"y":513,"width":663,"height":12}},{"id":"129c72da-8b89-4149-8efe-82e79252efcb","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":236,"box":{"x":117,"y":544,"width":738,"height":12}},{"id":"b2780114-d287-418e-8ba5-6dd9f4be6d6b","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for","page_number":236,"box":{"x":116,"y":560,"width":772,"height":12}},{"id":"43d5b7ec-af13-4941-9341-597bb04c4b59","block_type":"box","text":"its obligations. However, the Declaration of Trust establishing a trust, a copy of which for each","page_number":236,"box":{"x":117,"y":575,"width":701,"height":12}},{"id":"1a1f0698-5687-48c0-b211-f9d737c08c4b","block_type":"box","text":"applicable Fund, together with all amendments thereto (the “Declaration of Trust”), is on file in the","page_number":236,"box":{"x":116,"y":591,"width":729,"height":12}},{"id":"c84ddfb1-58f8-4c6b-867e-c980d3e7bed4","block_type":"box","text":"office of the Secretary of the Commonwealth of Massachusetts, contains an express disclaimer of","page_number":236,"box":{"x":116,"y":606,"width":731,"height":12}},{"id":"2fc1bf1c-4b33-48fd-8af9-8103957b58c5","block_type":"box","text":"shareholder liability for acts or obligations of the trust and provides for indemnification and","page_number":236,"box":{"x":116,"y":622,"width":672,"height":12}},{"id":"97507d3a-eddf-4a35-ad6a-e10c4777e3ef","block_type":"box","text":"reimbursement of expenses out of the trust property for any shareholder held personally liable for the","page_number":236,"box":{"x":117,"y":637,"width":754,"height":12}},{"id":"8683190e-3ef4-4bf4-936e-e1ae2b0b3169","block_type":"box","text":"obligations of the trust. The Declaration of Trust also provides that a trust may maintain appropriate","page_number":236,"box":{"x":116,"y":653,"width":742,"height":12}},{"id":"8a716e52-fbc4-413f-b801-74407a34b2cc","block_type":"box","text":"insurance (for example, fidelity bond and errors and omissions insurance) for the protection of the trust,","page_number":236,"box":{"x":117,"y":668,"width":765,"height":12}},{"id":"a671e643-c7b9-4d1b-80f4-8c4df06b8d25","block_type":"box","text":"its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":236,"box":{"x":117,"y":684,"width":740,"height":12}},{"id":"983c24f8-fe2d-4051-9d67-2d668bd2af34","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to","page_number":236,"box":{"x":116,"y":699,"width":740,"height":13}},{"id":"a486e240-1c0b-47ee-b151-50bb40a0e715","block_type":"box","text":"circumstances in which both inadequate insurance existed and the trust itself was unable to meet its","page_number":236,"box":{"x":116,"y":715,"width":743,"height":12}},{"id":"de3980ae-6722-4878-965f-99d6b9dc30f8","block_type":"box","text":"obligations.","page_number":236,"box":{"x":116,"y":731,"width":83,"height":12}},{"id":"997cb132-4df1-4891-bdd7-14f53609ede4","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":236,"box":{"x":117,"y":761,"width":428,"height":13}},{"id":"9e68dd52-2c70-49af-9d28-2141368a689a","block_type":"box","text":"Additional Information","page_number":236,"box":{"x":116,"y":792,"width":178,"height":10}},{"id":"4783b961-3952-4b44-85d8-d3ff317a5279","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock”","page_number":236,"box":{"x":117,"y":816,"width":742,"height":12}},{"id":"c315c42a-8149-40b9-824b-94ffaa19f90e","block_type":"box","text":"name and has reserved the right to (i) withdraw its consent to the use of such name by a Fund if the","page_number":236,"box":{"x":117,"y":831,"width":746,"height":12}},{"id":"ab523cb1-89a6-4ad4-adc6-71fe02326cb9","block_type":"box","text":"Fund ceases to retain BlackRock Advisors, LLC or BlackRock Fund Advisors, as applicable, as","page_number":236,"box":{"x":117,"y":847,"width":709,"height":12}},{"id":"34d2c79d-6b1d-44ac-8495-462540433686","block_type":"box","text":"investment adviser and (ii) to grant the use of such name to any other company.","page_number":236,"box":{"x":117,"y":862,"width":599,"height":12}},{"id":"cdbdceb1-8cf8-45d6-b324-c2fd1301f5c1","block_type":"box","text":"II-177","page_number":236,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"6e4ddebc-c197-4b0f-b6d3-82d20d7583a8","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":236,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8b02d5aa-4208-476f-a68e-642fe0b573cb","block_type":"box","text":"Appendix A","page_number":237,"box":{"x":453,"y":87,"width":98,"height":12}},{"id":"a1c05e71-477a-4bde-9dda-1a78f65a6631","block_type":"box","text":"Description of Bond Ratings","page_number":237,"box":{"x":387,"y":118,"width":231,"height":12}},{"id":"80139b99-c5e7-4c4c-bb93-50b79e698f2a","block_type":"box","text":"A rating is generally assigned to a fixed-income security at the time of issuance by a credit rating","page_number":237,"box":{"x":116,"y":149,"width":722,"height":12}},{"id":"6278fb01-b5e1-45b4-b78d-5f52473a82b1","block_type":"box","text":"agency designated as a nationally recognized statistical rating organization (“NRSRO”) by the SEC.","page_number":237,"box":{"x":116,"y":165,"width":744,"height":12}},{"id":"049238d1-9287-4f7a-8f8d-9a3a74d960b5","block_type":"box","text":"While NRSROs may from time to time revise such ratings, they undertake no obligation to do so, and","page_number":237,"box":{"x":116,"y":180,"width":755,"height":12}},{"id":"39af56fb-71fe-4db4-b39a-6b27cb937497","block_type":"box","text":"the ratings given to securities at issuance do not necessarily represent ratings which would be given to","page_number":237,"box":{"x":116,"y":196,"width":767,"height":12}},{"id":"25fc52cf-c074-4ede-85a3-fce2f577c82e","block_type":"box","text":"these securities on a particular subsequent date.","page_number":237,"box":{"x":116,"y":211,"width":366,"height":12}},{"id":"ce945f8c-c2a3-4245-aaaa-f8e5481f55b9","block_type":"box","text":"NRSROs may rate specific investments (e.g., bonds), issuers (e.g., corporations, governments and","page_number":237,"box":{"x":117,"y":242,"width":740,"height":12}},{"id":"a8d9c0e9-5703-45a6-b68b-f3320c97d563","block_type":"box","text":"financial institutions) and/or programs (e.g., commercial paper programs). However, certain types of","page_number":237,"box":{"x":116,"y":258,"width":747,"height":12}},{"id":"eccf488e-e02a-48bf-b212-9d9706590269","block_type":"box","text":"investments may not be rated by NRSROs, such as certain government/sovereign obligations, US","page_number":237,"box":{"x":117,"y":273,"width":732,"height":12}},{"id":"0f7cff05-e4a1-457c-8d6d-587bc988b4b5","block_type":"box","text":"agency securities, commercial paper, time deposits at financial institutions, and derivative instruments","page_number":237,"box":{"x":116,"y":289,"width":761,"height":12}},{"id":"8f359d3c-ab3a-4d89-9f7f-5df6d73a7e95","block_type":"box","text":"such as credit default swaps. For these types of investments, as well as US Treasury securities (some","page_number":237,"box":{"x":116,"y":304,"width":764,"height":12}},{"id":"c1b030da-97db-4e00-98ac-d8a04f28529e","block_type":"box","text":"of which are not rated), where a NRSRO has not rated the specific investment but has rated the","page_number":237,"box":{"x":116,"y":320,"width":716,"height":12}},{"id":"c5fe1390-5cb0-4d0e-af07-10deac83b0e5","block_type":"box","text":"investment’s issuer, program, financial institution or underlying reference asset, BlackRock Advisors,","page_number":237,"box":{"x":117,"y":335,"width":751,"height":12}},{"id":"a4b8b445-c399-44ae-9ea0-45de7e8b5e34","block_type":"box","text":"LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider the investment","page_number":237,"box":{"x":117,"y":351,"width":766,"height":12}},{"id":"dc51c6af-f99f-41b7-b3bc-7800d9733c64","block_type":"box","text":"to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":237,"box":{"x":116,"y":366,"width":736,"height":12}},{"id":"6034acee-5151-47ff-b1bd-c460a707b5fa","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings","page_number":237,"box":{"x":116,"y":382,"width":754,"height":12}},{"id":"28685c3f-b6de-4e1f-af03-62cea83393cb","block_type":"box","text":"for the same security (e.g., “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider","page_number":237,"box":{"x":116,"y":397,"width":770,"height":12}},{"id":"0ff97788-dfba-4140-989c-feab7457cc25","block_type":"box","text":"the security to have the highest of the multiple ratings.","page_number":237,"box":{"x":116,"y":413,"width":407,"height":12}},{"id":"b9b9fc39-f0a4-49c0-838d-fb2132c6a168","block_type":"box","text":"New issue securities (regardless of type) may not be rated by a NRSRO at the time of their initial","page_number":237,"box":{"x":117,"y":444,"width":722,"height":12}},{"id":"a527e96b-447b-48ce-b82b-1309bd56d353","block_type":"box","text":"offering. Preliminary prospectuses or term sheets for new issue securities may include an expected","page_number":237,"box":{"x":116,"y":459,"width":742,"height":12}},{"id":"5f02ef3d-1c61-46c5-be91-b23cc56ba0b4","block_type":"box","text":"rating for the security (as determined by the underwriter and/or issuer) or a NRSRO rating for the","page_number":237,"box":{"x":117,"y":475,"width":723,"height":12}},{"id":"7d343f77-c1a6-43d2-ad42-8c4cb4667899","block_type":"box","text":"issuer of the security. If applicable, when deciding whether to purchase a new issue security that has","page_number":237,"box":{"x":117,"y":490,"width":752,"height":12}},{"id":"949859d7-ac2a-4a41-9e16-5cd02c0ffce5","block_type":"box","text":"not yet been rated by a NRSRO, BlackRock may attribute an expected rating to the security based on:","page_number":237,"box":{"x":117,"y":506,"width":763,"height":12}},{"id":"f859aeb8-724f-4b99-9c4b-78ac5a6a3cb2","block_type":"box","text":"(i) the expected rating of the security set forth in the preliminary prospectus or term sheet for the","page_number":237,"box":{"x":117,"y":521,"width":718,"height":12}},{"id":"6d7176f7-31f3-4b31-b8a4-9acbdebc092f","block_type":"box","text":"security; (ii) the NRSRO’s rating for the issuer of the security set forth in the preliminary prospectus or","page_number":237,"box":{"x":116,"y":537,"width":760,"height":12}},{"id":"b5d0900c-a72f-4251-9d70-9064436c428e","block_type":"box","text":"term sheet for the security; or (iii) with respect to asset-backed securities, the rating of a prior issuance","page_number":237,"box":{"x":116,"y":552,"width":767,"height":12}},{"id":"0b4a4ce7-fe51-4e7c-bb4e-5fc1da4e8401","block_type":"box","text":"having a similar structure or the same sponsor.","page_number":237,"box":{"x":117,"y":568,"width":353,"height":12}},{"id":"cc352696-d280-49e3-8eba-92a8537b98cf","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit","page_number":237,"box":{"x":116,"y":599,"width":746,"height":12}},{"id":"dba11a31-e854-464b-8da5-6626537e6c1e","block_type":"box","text":"ratings eligibility criteria as part of its index methodology, the fund may purchase any security within the","page_number":237,"box":{"x":117,"y":614,"width":771,"height":12}},{"id":"a0ac7b16-b781-4ae7-8162-a22b74bdc433","block_type":"box","text":"index, such security having been determined by the index provider as meeting its credit ratings","page_number":237,"box":{"x":117,"y":630,"width":707,"height":12}},{"id":"1666c34e-abc5-4d63-888d-c11d4ff9cdd9","block_type":"box","text":"eligibility criteria. The credit ratings practices of an index provider may differ from BlackRock’s","page_number":237,"box":{"x":116,"y":645,"width":701,"height":12}},{"id":"93d1135d-8049-416e-8992-0b81a1545326","block_type":"box","text":"practices, as described above. Further, the fund may invest, directly or indirectly, in securities that are","page_number":237,"box":{"x":117,"y":661,"width":754,"height":12}},{"id":"f6db4044-50e1-4843-b1c1-749883540e42","block_type":"box","text":"not rated by a rating agency or securities with a credit rating that differs from the credit rating specified","page_number":237,"box":{"x":117,"y":676,"width":757,"height":12}},{"id":"0f04abae-6eff-4339-806f-72789bce2664","block_type":"box","text":"in its index methodology in various circumstances, including where a security is downgraded but not","page_number":237,"box":{"x":117,"y":692,"width":741,"height":12}},{"id":"39342510-4869-4ae5-818d-4836b2972dfb","block_type":"box","text":"yet removed from an index, following the removal of a security from an index prior to its sale by the","page_number":237,"box":{"x":116,"y":707,"width":733,"height":12}},{"id":"0036092e-0570-4315-8bb1-450d471de386","block_type":"box","text":"fund or as a result of a corporate action or restructuring affecting an issuer of a security held by the","page_number":237,"box":{"x":116,"y":723,"width":734,"height":12}},{"id":"7ff7fc4d-46f5-4961-93d6-3795e778f954","block_type":"box","text":"fund.","page_number":237,"box":{"x":116,"y":738,"width":36,"height":10}},{"id":"eb20ff7e-b619-4cc8-b32d-c6ee682bc031","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to","page_number":237,"box":{"x":117,"y":769,"width":757,"height":12}},{"id":"6b748b2e-f2e9-46bf-ae37-2bf28307506c","block_type":"box","text":"pay interest or repay principal which are similar to the risks of lower-rated speculative bonds.","page_number":237,"box":{"x":117,"y":785,"width":686,"height":12}},{"id":"8aa43d75-3a3c-4ea3-8d70-825162b6fa9b","block_type":"box","text":"Evaluation of these securities is dependent on BlackRock’s judgment, analysis and experience in the","page_number":237,"box":{"x":117,"y":800,"width":747,"height":12}},{"id":"d58a7377-a9ee-42de-945f-82db123b3167","block_type":"box","text":"evaluation of such securities.","page_number":237,"box":{"x":116,"y":816,"width":214,"height":9}},{"id":"16194a03-469e-47a6-9e1a-00b8c1f3c093","block_type":"box","text":"Investors should note that the assignment of a rating to a security by an NRSRO may not reflect the","page_number":237,"box":{"x":117,"y":847,"width":745,"height":12}},{"id":"c7df1ef7-1eaf-4bac-b23b-5693b6bf9ce2","block_type":"box","text":"effect of recent developments on the issuer’s ability to make interest and principal payments or on the","page_number":237,"box":{"x":116,"y":862,"width":760,"height":12}},{"id":"81d61b03-8392-44e6-9a08-927d3887af72","block_type":"box","text":"likelihood of default.","page_number":237,"box":{"x":117,"y":878,"width":152,"height":9}},{"id":"84d5f750-17de-4d92-9acf-cb1dc510c2e8","block_type":"box","text":"A-1","page_number":237,"box":{"x":486,"y":909,"width":24,"height":9}},{"id":"6238b32e-5473-49e0-b149-f1d2263bcea6","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":237,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8da8684b-d7c9-4d0f-83f0-038870272938","block_type":"box","text":"Securities deemed to be high yield are rated below Baa3 by Moody’s and below BBB- by S&P Global","page_number":238,"box":{"x":116,"y":87,"width":755,"height":12}},{"id":"6e2b206f-81de-4454-a887-43ee2051e92d","block_type":"box","text":"Ratings and Fitch.","page_number":238,"box":{"x":117,"y":103,"width":139,"height":12}},{"id":"2a95e5ba-c6f0-4cce-bedb-980b9a6ce3aa","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":238,"box":{"x":116,"y":134,"width":674,"height":12}},{"id":"ed84812e-2f9a-43b0-ac1f-7bb9e4428b7b","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":238,"box":{"x":116,"y":165,"width":677,"height":12}},{"id":"d12ad843-482c-4d54-8ac1-4006519f67c7","block_type":"box","text":"Ratings assigned on Moody’s global long-term and short-term rating scales are forward-looking","page_number":238,"box":{"x":117,"y":196,"width":711,"height":12}},{"id":"a41ce61b-2329-4fc6-b5a2-e46a7680fd4f","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial","page_number":238,"box":{"x":116,"y":211,"width":759,"height":12}},{"id":"a53a1510-a1f8-4f53-a4e4-df86f8b53a94","block_type":"box","text":"institutions, structured finance vehicles, project finance vehicles, and public sector entities. Moody’s","page_number":238,"box":{"x":117,"y":227,"width":742,"height":12}},{"id":"19ed97a3-19d6-4460-9400-774aa63fc6f0","block_type":"box","text":"defines credit risk as the risk that an entity may not meet its contractual financial obligations as they","page_number":238,"box":{"x":116,"y":242,"width":744,"height":12}},{"id":"5056bfe3-7dfa-472f-96c5-d42ba3c41247","block_type":"box","text":"come due and any estimated financial loss in the event of default or impairment. The contractual","page_number":238,"box":{"x":116,"y":258,"width":720,"height":12}},{"id":"45e5eb56-89f1-46ec-8fdf-cd4ff237999e","block_type":"box","text":"financial obligations addressed by Moody’s ratings are those that call for, without regard to","page_number":238,"box":{"x":116,"y":273,"width":676,"height":12}},{"id":"c6e4d8db-1b27-4f1f-8f9e-2fa9b010fe95","block_type":"box","text":"enforceability, the payment of an ascertainable amount, which may vary based upon standard sources","page_number":238,"box":{"x":116,"y":289,"width":765,"height":12}},{"id":"f1161cb7-5fe3-40b3-a2ad-e586a8b324bb","block_type":"box","text":"of variation (e.g., floating interest rates), by an ascertainable date. Moody’s rating addresses the","page_number":238,"box":{"x":116,"y":304,"width":719,"height":12}},{"id":"1fd24863-0476-46fa-8f0f-878d16de3581","block_type":"box","text":"issuer’s ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s","page_number":238,"box":{"x":117,"y":320,"width":738,"height":12}},{"id":"9f2d49e7-988c-4777-99d2-9d62220dbfa3","block_type":"box","text":"ratings do not address non-standard sources of variation in the amount of the principal obligation (e.g.,","page_number":238,"box":{"x":117,"y":335,"width":765,"height":12}},{"id":"5701af56-7546-4481-a5d7-76cbacbd4b56","block_type":"box","text":"equity indexed), absent an express statement to the contrary in a press release accompanying an","page_number":238,"box":{"x":116,"y":351,"width":731,"height":12}},{"id":"00f490ed-25d6-47a5-9604-c34a36e6cb2a","block_type":"box","text":"initial rating. Long-term ratings are assigned to issuers or obligations with an original maturity of one","page_number":238,"box":{"x":117,"y":366,"width":745,"height":12}},{"id":"7815ebef-a75a-465f-9f71-09e4765ea684","block_type":"box","text":"year or more and reflect both on the likelihood of a default or impairment on contractual financial","page_number":238,"box":{"x":116,"y":382,"width":719,"height":12}},{"id":"046a149a-c7dd-4051-b236-420559789a89","block_type":"box","text":"obligations and the expected financial loss suffered in the event of default or impairment. Short-term","page_number":238,"box":{"x":116,"y":397,"width":747,"height":12}},{"id":"6f7b2e74-0869-4dd3-b532-59cbfe99b9f9","block_type":"box","text":"ratings are assigned for obligations with an original maturity of thirteen months or less and reflect both","page_number":238,"box":{"x":117,"y":413,"width":760,"height":12}},{"id":"4620c2ea-2763-47ae-8730-f0f18e1d550e","block_type":"box","text":"on the likelihood of a default or impairment on contractual financial obligations and the expected","page_number":238,"box":{"x":116,"y":428,"width":717,"height":12}},{"id":"64ec369a-cded-40ec-85a8-8a7a2d3d4f6c","block_type":"box","text":"financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level","page_number":238,"box":{"x":116,"y":444,"width":755,"height":12}},{"id":"36ba7c8f-5a45-469f-be40-837450a89b8e","block_type":"box","text":"and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made","page_number":238,"box":{"x":116,"y":459,"width":761,"height":12}},{"id":"ea3585c9-b1de-4dee-9515-657490fab048","block_type":"box","text":"publicly available although private and unpublished ratings may also be assigned.","page_number":238,"box":{"x":117,"y":475,"width":610,"height":12}},{"id":"71d2f699-54ca-49e0-a1e9-3b56a3c38222","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (i.e., ratings on nonfinancial","page_number":238,"box":{"x":117,"y":506,"width":763,"height":12}},{"id":"496321af-7209-4d47-9e1f-563b2c71685b","block_type":"box","text":"corporate, financial institution, and public sector entities) on the global long-term scale by adding (sf) to","page_number":238,"box":{"x":116,"y":521,"width":769,"height":12}},{"id":"696c2240-388d-48b1-9150-3597ab3e8993","block_type":"box","text":"all structured finance ratings. The addition of (sf) to structured finance ratings should eliminate any","page_number":238,"box":{"x":116,"y":537,"width":735,"height":12}},{"id":"b8810771-8762-4e22-8111-23c97cfcd444","block_type":"box","text":"presumption that such ratings and fundamental ratings at the same letter grade level will behave the","page_number":238,"box":{"x":117,"y":552,"width":747,"height":12}},{"id":"61f088f1-2a01-41af-bf39-cd08d3d646a1","block_type":"box","text":"same. The (sf) indicator for structured finance security ratings indicates that otherwise similarly rated","page_number":238,"box":{"x":116,"y":568,"width":751,"height":12}},{"id":"800d7c64-005c-49ce-98c5-6cc32d641f59","block_type":"box","text":"structured finance and fundamental securities may have different risk characteristics. Through its","page_number":238,"box":{"x":116,"y":583,"width":724,"height":12}},{"id":"20332373-d9ed-465b-a7ed-fe1fa262eb35","block_type":"box","text":"current methodologies, however, Moody’s aspires to achieve broad expected equivalence in structured","page_number":238,"box":{"x":116,"y":599,"width":769,"height":12}},{"id":"626934ca-85d1-4ca9-b0ef-2b5a2634c29f","block_type":"box","text":"finance and fundamental rating performance when measured over a long period of time.","page_number":238,"box":{"x":116,"y":614,"width":658,"height":12}},{"id":"a3f806f8-0b41-4fda-a48f-9cb12a789f53","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":238,"box":{"x":117,"y":645,"width":445,"height":12}},{"id":"bc0a49fc-20b8-4cd9-b694-b3dbdfd57823","block_type":"box","text":"Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of","page_number":238,"box":{"x":116,"y":676,"width":726,"height":12}},{"id":"1b34c43b-57e4-4532-8acf-c363982b559f","block_type":"box","text":"credit risk.","page_number":238,"box":{"x":175,"y":692,"width":75,"height":9}},{"id":"ba6ebe1a-4fc2-4b96-8341-27f468b4ef14","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":238,"box":{"x":116,"y":715,"width":731,"height":12}},{"id":"4be91db7-0926-45f3-b640-9b9aa5a6b99f","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":238,"box":{"x":116,"y":738,"width":737,"height":12}},{"id":"396e6780-fc49-46a4-bae8-b797cfc02d51","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and","page_number":238,"box":{"x":117,"y":761,"width":753,"height":13}},{"id":"21a2d214-0cdf-4c88-b92d-dda01d8629d7","block_type":"box","text":"as such may possess certain speculative characteristics.","page_number":238,"box":{"x":175,"y":777,"width":420,"height":12}},{"id":"eb2e8a2e-4630-482a-9774-9d2b5e6e3457","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":238,"box":{"x":117,"y":800,"width":729,"height":12}},{"id":"6d34b5f0-c0f8-451d-abb6-857894159862","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":238,"box":{"x":117,"y":823,"width":660,"height":13}},{"id":"c70c7161-5c00-4006-be0a-ff0b54fa943e","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very","page_number":238,"box":{"x":117,"y":847,"width":741,"height":12}},{"id":"7756017c-a9b5-45b0-a427-1a4c9bec0df3","block_type":"box","text":"high credit risk.","page_number":238,"box":{"x":176,"y":862,"width":116,"height":12}},{"id":"4a5b8436-01aa-4e66-8003-b0f9a42a5939","block_type":"box","text":"A-2","page_number":238,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"7a283480-02e6-4c2e-976e-91d5806643ad","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":238,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f7eb5ac9-b706-484f-a3b1-3caa63cba806","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":239,"box":{"x":117,"y":87,"width":748,"height":12}},{"id":"c20d01ba-1f86-4217-aec7-4c17d67000aa","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":239,"box":{"x":176,"y":102,"width":339,"height":13}},{"id":"cbfdff47-9dca-47e2-a8e9-8a159424ef8b","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for","page_number":239,"box":{"x":117,"y":126,"width":726,"height":12}},{"id":"6fd7a19f-c96d-4abf-afef-0bd6de224082","block_type":"box","text":"recovery of principal or interest.","page_number":239,"box":{"x":176,"y":141,"width":238,"height":12}},{"id":"48c83a57-a4e9-4757-b4b6-7c24b2189e47","block_type":"box","text":"Note","page_number":239,"box":{"x":117,"y":172,"width":34,"height":10}},{"id":"cc64d781-fd5b-4c3e-a108-e584ce664944","block_type":"box","text":": Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa","page_number":239,"box":{"x":153,"y":172,"width":709,"height":12}},{"id":"044040fa-b2ea-426d-a4b0-c09aa7c382d0","block_type":"box","text":"through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating","page_number":239,"box":{"x":116,"y":188,"width":745,"height":12}},{"id":"1f28f141-7c8f-4511-ad60-5e9515aea398","block_type":"box","text":"category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the","page_number":239,"box":{"x":116,"y":203,"width":741,"height":12}},{"id":"f2161ad4-9d50-4c3b-8f9b-d84c5a634d49","block_type":"box","text":"lower end of that generic rating category. Additionally, a “(hyb)” indicator is appended to all ratings of","page_number":239,"box":{"x":117,"y":219,"width":751,"height":12}},{"id":"c4389cbc-c119-4155-bbd1-1b20ae97f60c","block_type":"box","text":"hybrid securities issued by banks, insurers, finance companies, and securities firms.","page_number":239,"box":{"x":117,"y":234,"width":628,"height":12}},{"id":"6bfdd603-dd93-4525-9f63-a3c92320b940","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal","page_number":239,"box":{"x":117,"y":265,"width":737,"height":12}},{"id":"0734a10b-c651-484d-b626-4c658054518e","block_type":"box","text":"payments, which can potentially result in impairment if such an omission occurs. Hybrid securities may","page_number":239,"box":{"x":117,"y":281,"width":765,"height":12}},{"id":"f7265aa6-f957-4d2e-9c84-b07aa0106e9a","block_type":"box","text":"also be subject to contractually allowable write-downs of principal that could result in impairment.","page_number":239,"box":{"x":116,"y":296,"width":724,"height":12}},{"id":"750335ce-9dd2-465c-9c4b-349b2ad211fd","block_type":"box","text":"Together with the hybrid indicator, the long-term obligation rating assigned to a hybrid security is an","page_number":239,"box":{"x":116,"y":312,"width":744,"height":12}},{"id":"05d5dea1-7928-4193-bbb9-427c6eb91a5a","block_type":"box","text":"expression of the relative credit risk associated with that security.","page_number":239,"box":{"x":116,"y":327,"width":488,"height":12}},{"id":"5ccf3787-a4b1-42fb-8dc8-6083660c2f6c","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":239,"box":{"x":117,"y":358,"width":448,"height":12}},{"id":"48ad473a-4677-4941-a8c4-7c74316a9a0d","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":239,"box":{"x":117,"y":389,"width":616,"height":12}},{"id":"279e8088-3e29-48e4-bc13-04a3fe963c3d","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":239,"box":{"x":117,"y":413,"width":602,"height":12}},{"id":"f91bf650-79c8-4a94-b2ac-980199e95f74","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":239,"box":{"x":117,"y":436,"width":646,"height":12}},{"id":"4532bfeb-621a-4765-8410-7d1885ffc62b","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":239,"box":{"x":117,"y":459,"width":737,"height":12}},{"id":"2b59f63e-1100-40ca-9761-2117192b3451","block_type":"box","text":"categories.","page_number":239,"box":{"x":175,"y":475,"width":87,"height":12}},{"id":"0adf5ec3-678a-4764-8dd5-825b69aa6b71","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":239,"box":{"x":117,"y":506,"width":707,"height":12}},{"id":"6b789926-ada7-484d-9bcd-9a186c87d723","block_type":"box","text":"Description of Moody’s Short-Term Obligation Ratings","page_number":239,"box":{"x":117,"y":537,"width":439,"height":12}},{"id":"482f827c-ee9e-42ae-9b81-071344f0ff61","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S.","page_number":239,"box":{"x":117,"y":568,"width":681,"height":12}},{"id":"887ad501-c3da-48c4-8d35-78ab4d1867dd","block_type":"box","text":"municipalities and nonprofits. These commercial paper programs may be backed by external letters of","page_number":239,"box":{"x":117,"y":583,"width":761,"height":12}},{"id":"b3160b49-01b9-42db-9102-0260ebe4839e","block_type":"box","text":"credit or liquidity facilities, or by an issuer’s self-liquidity.","page_number":239,"box":{"x":116,"y":599,"width":420,"height":12}},{"id":"5d8f22bf-8751-47c2-97b9-d7a3cdc6ec23","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":239,"box":{"x":117,"y":630,"width":765,"height":12}},{"id":"e4fe92de-9cb7-46f3-bbf7-3c345526db2d","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales","page_number":239,"box":{"x":117,"y":645,"width":708,"height":12}},{"id":"26f4ddbc-4ae0-48a1-8d82-bcce1a6564cd","block_type":"box","text":"discussed below.","page_number":239,"box":{"x":116,"y":661,"width":126,"height":9}},{"id":"615ea515-1552-4de7-8adc-bcbee8e29d8a","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain","page_number":239,"box":{"x":117,"y":692,"width":738,"height":12}},{"id":"5883122c-d654-4781-97d3-b326cda78fa4","block_type":"box","text":"other short-term obligations, which typically mature in three years or less. Under certain circumstances,","page_number":239,"box":{"x":116,"y":707,"width":766,"height":12}},{"id":"c2399d6a-86c7-48b2-a23e-4c41790d3d96","block_type":"box","text":"Moody’s uses the MIG scale for bond anticipation notes with maturities of up to five years.","page_number":239,"box":{"x":117,"y":723,"width":665,"height":12}},{"id":"930b182c-b80e-44ec-ae40-a3fce5ebf195","block_type":"box","text":"MIG Scale","page_number":239,"box":{"x":117,"y":754,"width":77,"height":9}},{"id":"f67ee93b-9d9a-417f-9815-8f5846f360ce","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":239,"box":{"x":117,"y":785,"width":760,"height":12}},{"id":"9dd37d4e-3083-4d3d-b6fe-b74694ca0da5","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market","page_number":239,"box":{"x":175,"y":800,"width":703,"height":12}},{"id":"07d314eb-bcd3-4764-b989-8f720333ade7","block_type":"box","text":"for refinancing.","page_number":239,"box":{"x":175,"y":816,"width":110,"height":12}},{"id":"eeda982c-0fde-4d85-8799-6c432a6395be","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":239,"box":{"x":117,"y":839,"width":771,"height":12}},{"id":"dd44281a-6b42-409a-94c4-9b2275d0baf6","block_type":"box","text":"large as in the preceding group.","page_number":239,"box":{"x":176,"y":855,"width":240,"height":12}},{"id":"89b57ed9-48c6-4376-9ea5-749aaa01a721","block_type":"box","text":"A-3","page_number":239,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"e81cb77c-4004-42f4-bf07-dc69c6318d3b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":239,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f9d4bcae-2605-4493-9020-2e33cf0e0f1b","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":240,"box":{"x":117,"y":87,"width":753,"height":12}},{"id":"c084e47b-c5b7-49b5-8a2e-28d3685b82cf","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":240,"box":{"x":176,"y":102,"width":582,"height":13}},{"id":"997db3be-5d32-435f-9601-fe94a4814a5d","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category","page_number":240,"box":{"x":116,"y":126,"width":741,"height":12}},{"id":"afa484a3-4cca-4ff2-a483-6c6556a0fb6c","block_type":"box","text":"may lack sufficient margins of protection.","page_number":240,"box":{"x":176,"y":141,"width":307,"height":12}},{"id":"f78d1ce6-59d1-4e30-bc25-75d11d959184","block_type":"box","text":"Description of Moody’s Demand Obligation Ratings","page_number":240,"box":{"x":117,"y":172,"width":415,"height":12}},{"id":"b9900bef-5c80-4e0e-a5b0-6a9ad454f9d5","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The","page_number":240,"box":{"x":117,"y":203,"width":749,"height":12}},{"id":"01e0e2ea-ccbc-4997-b772-09745e231206","block_type":"box","text":"components are a long-term rating and a short-term demand obligation rating. The long-term rating","page_number":240,"box":{"x":116,"y":219,"width":740,"height":12}},{"id":"892c8a05-927d-4b56-b93f-43a1f4160d4f","block_type":"box","text":"addresses the issuer’s ability to meet scheduled principal and interest payments. The short-term","page_number":240,"box":{"x":116,"y":234,"width":719,"height":12}},{"id":"8807b119-b1c5-443f-bc65-6f5ccc4397c1","block_type":"box","text":"demand obligation rating addresses the ability of the issuer or the liquidity provider to make payments","page_number":240,"box":{"x":116,"y":250,"width":759,"height":12}},{"id":"578e8644-b740-444e-93cf-7efd4e55f701","block_type":"box","text":"associated with the purchase-price-upon-demand feature (“demand feature”) of the VRDO. The short","page_number":240,"box":{"x":116,"y":265,"width":756,"height":12}},{"id":"163211f7-2d7c-4f27-99f3-10c10ba02271","block_type":"box","text":"term demand obligation rating uses the VMIG scale. VMIG ratings with liquidity support use as an input","page_number":240,"box":{"x":116,"y":281,"width":770,"height":12}},{"id":"39fa7b2a-cd53-4bbe-8310-d62e8c0eb5ea","block_type":"box","text":"the short-term Counterparty Risk Assessment of the support provider, or the long-term rating of the","page_number":240,"box":{"x":116,"y":296,"width":740,"height":12}},{"id":"c203a099-5486-43e8-b042-1ecc9da3f69f","block_type":"box","text":"underlying obligor in the absence of third party liquidity support. Transitions of VMIG ratings of demand","page_number":240,"box":{"x":117,"y":312,"width":768,"height":12}},{"id":"5d116022-b3bc-45fd-8f57-f693ae54cf5b","block_type":"box","text":"obligations with conditional liquidity support differ from transitions on the Prime scale to reflect the risk","page_number":240,"box":{"x":116,"y":327,"width":760,"height":12}},{"id":"2c2513ee-fa83-4441-869e-08e678b78753","block_type":"box","text":"that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":240,"box":{"x":116,"y":343,"width":729,"height":12}},{"id":"51774d82-3510-4647-ae79-4b5fa8fb8a46","block_type":"box","text":"grade.","page_number":240,"box":{"x":116,"y":358,"width":52,"height":12}},{"id":"981ad372-9d57-46f0-a2bf-7e7541f31054","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand","page_number":240,"box":{"x":117,"y":389,"width":771,"height":12}},{"id":"80476291-87d1-4619-b5a6-27071d8c734b","block_type":"box","text":"feature is less than every three years. If the frequency of the demand feature is less than three years","page_number":240,"box":{"x":116,"y":405,"width":753,"height":12}},{"id":"60b35fd7-cf71-4dce-840f-132d01fa54fe","block_type":"box","text":"but the purchase price is payable only with remarketing proceeds, the short-term demand obligation","page_number":240,"box":{"x":117,"y":420,"width":745,"height":12}},{"id":"752f5012-8409-43ac-b63f-e368ad32ef39","block_type":"box","text":"rating is “NR”.","page_number":240,"box":{"x":117,"y":436,"width":107,"height":12}},{"id":"c967fb77-d0b3-4f6f-b573-674250eef468","block_type":"box","text":"VMIG Scale","page_number":240,"box":{"x":116,"y":467,"width":94,"height":9}},{"id":"197599b3-31d1-4060-acd9-5c03a95b7aea","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the","page_number":240,"box":{"x":116,"y":498,"width":713,"height":12}},{"id":"4bbb7422-a662-433c-8145-951306d225ae","block_type":"box","text":"superior short-term credit strength of the liquidity provider and structural and legal protections","page_number":240,"box":{"x":184,"y":513,"width":697,"height":12}},{"id":"f087598c-a2a4-42a6-a1b3-6872249479cd","block_type":"box","text":"that ensure the timely payment of purchase price upon demand.","page_number":240,"box":{"x":183,"y":529,"width":481,"height":12}},{"id":"52957119-4b15-4bae-9492-6478352a28e0","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short","page_number":240,"box":{"x":116,"y":552,"width":766,"height":12}},{"id":"a83588bb-eb64-461a-950d-76a0c9449bd0","block_type":"box","text":"term credit strength of the liquidity provider and structural and legal protections that ensure","page_number":240,"box":{"x":183,"y":568,"width":679,"height":12}},{"id":"8843c294-0d8d-4e65-b3a3-8c19b13b49f3","block_type":"box","text":"the timely payment of purchase price upon demand.","page_number":240,"box":{"x":183,"y":583,"width":392,"height":12}},{"id":"5c15e8a3-90c0-4563-9c08-dd4fd5e7aa31","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":240,"box":{"x":116,"y":606,"width":738,"height":12}},{"id":"27f136ec-dc67-4f72-aa4c-aa66142417c7","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal","page_number":240,"box":{"x":184,"y":622,"width":635,"height":12}},{"id":"905f1a9d-2030-406b-a8b5-14cebc5fb981","block_type":"box","text":"protections that ensure the timely payment of purchase price upon demand.","page_number":240,"box":{"x":184,"y":637,"width":567,"height":12}},{"id":"9b5ab891-731f-4e11-b5f0-1824df3ed67d","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this","page_number":240,"box":{"x":116,"y":661,"width":720,"height":12}},{"id":"8d1a7424-a7c6-41b7-8af8-9210aae9dca7","block_type":"box","text":"category may be supported by a liquidity provider that does not have a sufficiently strong","page_number":240,"box":{"x":184,"y":676,"width":657,"height":12}},{"id":"47c8dd87-d1ba-4ceb-92cf-259b8cd6eaf4","block_type":"box","text":"short-term rating or may lack the structural or legal protections necessary to ensure the timely","page_number":240,"box":{"x":184,"y":692,"width":695,"height":12}},{"id":"5615ac59-7676-4043-a5c5-f65178a9be94","block_type":"box","text":"payment of purchase price upon demand.","page_number":240,"box":{"x":184,"y":707,"width":308,"height":12}},{"id":"8c3fc0ec-3182-4442-bd86-0cffe5ad230b","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":240,"box":{"x":117,"y":738,"width":753,"height":12}},{"id":"8cb4e1f0-320c-41a7-a080-78cbe1fc59fc","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with","page_number":240,"box":{"x":116,"y":769,"width":737,"height":12}},{"id":"c16c2695-0cf2-4bf3-8f60-9ca2a2d0ec23","block_type":"box","text":"respect to a specific financial obligation, a specific class of financial obligations, or a specific financial","page_number":240,"box":{"x":117,"y":785,"width":748,"height":12}},{"id":"f52a602d-7e41-4f7e-91c4-3373f398d2be","block_type":"box","text":"program (including ratings on medium-term note programs and commercial paper programs). It takes","page_number":240,"box":{"x":117,"y":800,"width":750,"height":12}},{"id":"4c00c60d-d89b-4edd-b503-9361225d6d77","block_type":"box","text":"into consideration the creditworthiness of guarantors, insurers, or other forms of credit enhancement","page_number":240,"box":{"x":117,"y":816,"width":744,"height":12}},{"id":"4a63cb49-4cb0-4b7f-ba53-a267763e4c99","block_type":"box","text":"on the obligation and takes into account the currency in which the obligation is denominated. The","page_number":240,"box":{"x":116,"y":831,"width":726,"height":12}},{"id":"154e3f57-d490-4416-b3b5-96eec6bb2c87","block_type":"box","text":"opinion reflects S&P’s view of the obligor’s capacity and willingness to meet its financial commitments","page_number":240,"box":{"x":116,"y":847,"width":759,"height":12}},{"id":"00ea445c-cda8-43df-ae48-9e77f4281184","block_type":"box","text":"as they come due, and this opinion may assess terms, such as collateral security and subordination,","page_number":240,"box":{"x":116,"y":862,"width":750,"height":12}},{"id":"58e93e2f-d751-4427-85d5-e1630f26efbd","block_type":"box","text":"which could affect ultimate payment in the event of default.","page_number":240,"box":{"x":116,"y":878,"width":441,"height":12}},{"id":"1c688ad9-76ad-403b-94e0-5adac2328083","block_type":"box","text":"A-4","page_number":240,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"93a2b696-c8f5-4eb6-a5b6-d9ad36132a13","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":240,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"51354085-902c-4c64-a7cc-7cd9d7c86ce0","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally","page_number":241,"box":{"x":117,"y":87,"width":760,"height":12}},{"id":"09138211-0b2a-46d0-847a-b7760102d798","block_type":"box","text":"assigned to those obligations considered short-term in the relevant market, typically with an original","page_number":241,"box":{"x":116,"y":103,"width":743,"height":12}},{"id":"20792eb8-6463-40c3-a795-f67d4c34a45a","block_type":"box","text":"maturity of no more than 365 days. Short-term issue credit ratings are also used to indicate the","page_number":241,"box":{"x":117,"y":118,"width":708,"height":12}},{"id":"73308c4d-7d28-4843-a0be-7527249d2086","block_type":"box","text":"creditworthiness of an obligor with respect to put features on long-term obligations. S&P would typically","page_number":241,"box":{"x":116,"y":134,"width":771,"height":12}},{"id":"244a4090-9e1b-4add-b1d0-97c0c44400c4","block_type":"box","text":"assign a long-term issue credit rating to an obligation with an original maturity of greater than 365 days.","page_number":241,"box":{"x":116,"y":149,"width":772,"height":12}},{"id":"f73715d6-7b7f-4415-876b-12f7a509028b","block_type":"box","text":"However, the ratings S&P assigns to certain instruments may diverge from these guidelines based on","page_number":241,"box":{"x":117,"y":165,"width":758,"height":12}},{"id":"2c19a58f-6342-4470-82d7-5eaa6791f07c","block_type":"box","text":"market practices. Medium-term notes are assigned long-term ratings.","page_number":241,"box":{"x":117,"y":180,"width":518,"height":12}},{"id":"9e90e836-9688-4131-8abb-f2a0d3524452","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":241,"box":{"x":117,"y":211,"width":750,"height":12}},{"id":"f3894f16-72fe-422a-9222-4f9451bf5c58","block_type":"box","text":"• The likelihood of payment—the capacity and willingness of the obligor to meet its financial","page_number":241,"box":{"x":150,"y":242,"width":706,"height":12}},{"id":"f6e8c84e-2a16-44b6-96b6-765c89131f37","block_type":"box","text":"commitments on an obligation in accordance with the terms of the obligation;","page_number":241,"box":{"x":184,"y":258,"width":575,"height":12}},{"id":"4ada2371-518c-4074-959f-361fb3d25b33","block_type":"box","text":"• The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":241,"box":{"x":150,"y":281,"width":692,"height":12}},{"id":"bde0a4ea-e052-4f70-9e4e-d504ff35e918","block_type":"box","text":"• The protection afforded by, and relative position of, the financial obligation in the event of a","page_number":241,"box":{"x":150,"y":304,"width":712,"height":12}},{"id":"1bd14738-5ce5-4c2b-9b88-9aacc1c4f512","block_type":"box","text":"bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws","page_number":241,"box":{"x":184,"y":320,"width":704,"height":12}},{"id":"4e47fde5-cdc3-4bc2-a712-49f9799ba974","block_type":"box","text":"affecting creditors’ rights.","page_number":241,"box":{"x":184,"y":335,"width":191,"height":12}},{"id":"46de5e02-26b1-4a43-b387-0aa3b18c89cc","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority","page_number":241,"box":{"x":116,"y":366,"width":772,"height":12}},{"id":"fac94301-4708-4aa7-a342-510e5146e45b","block_type":"box","text":"or ultimate recovery in the event of default. Junior obligations are typically rated lower than senior","page_number":241,"box":{"x":116,"y":382,"width":728,"height":12}},{"id":"bf003fac-197f-4504-b0dc-e2dca197ba64","block_type":"box","text":"obligations, to reflect lower priority in bankruptcy, as noted above. (Such differentiation may apply","page_number":241,"box":{"x":116,"y":397,"width":729,"height":12}},{"id":"10227044-561b-4998-ac82-630e474dcf6e","block_type":"box","text":"when an entity has both senior and subordinated obligations, secured and unsecured obligations, or","page_number":241,"box":{"x":116,"y":413,"width":747,"height":12}},{"id":"6cedb68a-939d-4d6a-a164-94c819c8795d","block_type":"box","text":"operating company and holding company obligations.)","page_number":241,"box":{"x":116,"y":428,"width":407,"height":12}},{"id":"2009ddf0-20af-4470-8318-21069d0de123","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":241,"box":{"x":117,"y":459,"width":265,"height":12}},{"id":"fd0a8c1d-224b-4ed7-8d70-1dc31ce8b372","block_type":"box","text":"AAA An obligation rated ‘AAA’ has the highest rating assigned by S&P. The obligor’s capacity to","page_number":241,"box":{"x":116,"y":490,"width":755,"height":12}},{"id":"1a4ba423-7fbd-407d-b5f8-b0e26a2cb211","block_type":"box","text":"meet its financial commitments on the obligation is extremely strong.","page_number":241,"box":{"x":192,"y":506,"width":513,"height":12}},{"id":"c553d137-f028-472c-b5df-2038cf9c7345","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree.","page_number":241,"box":{"x":116,"y":529,"width":734,"height":12}},{"id":"141f56a7-dec4-43f6-a2cf-5ca6d859d340","block_type":"box","text":"The obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":241,"box":{"x":191,"y":544,"width":659,"height":12}},{"id":"d227c9d8-5b90-44f7-bfba-7b7bbb5a89a7","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":241,"box":{"x":116,"y":568,"width":744,"height":12}},{"id":"70a5355c-1d8e-40e1-adba-0ce541586a11","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories.","page_number":241,"box":{"x":192,"y":583,"width":624,"height":12}},{"id":"d264cf20-8357-4eb0-becb-25e7477426bc","block_type":"box","text":"However, the obligor’s capacity to meet its financial commitments on the obligation is still","page_number":241,"box":{"x":192,"y":599,"width":664,"height":12}},{"id":"5531ceb7-e6f8-4cc3-b618-111aad94e203","block_type":"box","text":"strong.","page_number":241,"box":{"x":191,"y":614,"width":56,"height":12}},{"id":"c9c9aee9-087a-4da1-832a-27c786e8a814","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse","page_number":241,"box":{"x":117,"y":637,"width":715,"height":12}},{"id":"6555466d-6e03-43ad-a478-938948192de4","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken the obligor’s","page_number":241,"box":{"x":192,"y":653,"width":652,"height":12}},{"id":"8463610a-6e8c-428c-9f0f-98fe670a1073","block_type":"box","text":"capacity to meet its financial commitments on the obligation.","page_number":241,"box":{"x":192,"y":668,"width":446,"height":12}},{"id":"2272afff-83b4-4b8e-8638-10b155d5898d","block_type":"box","text":"BB, B,","page_number":241,"box":{"x":117,"y":692,"width":45,"height":11}},{"id":"8ead63b3-518f-41df-9e5d-93d8ca344ec5","block_type":"box","text":"CCC,","page_number":241,"box":{"x":117,"y":707,"width":38,"height":11}},{"id":"c58eb0f0-1028-49a5-ac58-aaa2ef4e35b3","block_type":"box","text":"CC,","page_number":241,"box":{"x":117,"y":723,"width":26,"height":11}},{"id":"06fa4d8d-46f3-4d04-9631-82be1c6ddeb4","block_type":"box","text":"and C","page_number":241,"box":{"x":116,"y":738,"width":44,"height":10}},{"id":"0a367602-9635-4fa5-a2f5-a35516e5bb2f","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant","page_number":241,"box":{"x":192,"y":692,"width":602,"height":12}},{"id":"9b348f97-fd12-44db-a1e3-48a4d97f668f","block_type":"box","text":"speculative characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the","page_number":241,"box":{"x":191,"y":707,"width":625,"height":12}},{"id":"aca3470d-b6db-49ea-8d88-7026b2bdf8b0","block_type":"box","text":"highest. While such obligations will likely have some quality and protective characteristics,","page_number":241,"box":{"x":192,"y":723,"width":666,"height":12}},{"id":"a64c9552-ef54-47c7-b67f-d1e4fae58e12","block_type":"box","text":"these may be outweighed by large uncertainties or major exposure to adverse conditions.","page_number":241,"box":{"x":191,"y":738,"width":664,"height":12}},{"id":"a83a4074-de6e-46b5-823c-3a12429a8c37","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues.","page_number":241,"box":{"x":117,"y":761,"width":723,"height":13}},{"id":"1cf2cef6-968f-4e90-bac0-f5dca1f9e774","block_type":"box","text":"However, it faces major ongoing uncertainties or exposure to adverse business, financial,","page_number":241,"box":{"x":192,"y":777,"width":662,"height":12}},{"id":"b5037d5e-4171-428c-8e33-092f2f2ec8b7","block_type":"box","text":"or economic conditions that could lead to the obligor’s inadequate capacity to meet its","page_number":241,"box":{"x":192,"y":793,"width":635,"height":12}},{"id":"eea21398-ebc7-4b29-9160-a0fa53bd49e7","block_type":"box","text":"financial commitments on the obligation.","page_number":241,"box":{"x":191,"y":808,"width":298,"height":12}},{"id":"76349a6d-0416-4c46-bc49-8491c205a5c8","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but","page_number":241,"box":{"x":117,"y":831,"width":733,"height":12}},{"id":"b1d5b981-6867-4419-8c78-7c45429c64a5","block_type":"box","text":"the obligor currently has the capacity to meet its financial commitments on the obligation.","page_number":241,"box":{"x":191,"y":847,"width":665,"height":12}},{"id":"36bb873f-9da8-420c-9a6c-8965408a774c","block_type":"box","text":"Adverse business, financial, or economic conditions will likely impair the obligor’s capacity","page_number":241,"box":{"x":191,"y":862,"width":672,"height":12}},{"id":"2474531b-7d9c-4757-be5a-ec90dadfb132","block_type":"box","text":"or willingness to meet its financial commitments on the obligation.","page_number":241,"box":{"x":192,"y":878,"width":491,"height":12}},{"id":"6cdb1a21-4454-4423-b932-3a0a4f727b2d","block_type":"box","text":"A-5","page_number":241,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"399594a4-c88f-4ddc-932c-e0a2f0d6e999","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":241,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4223a89f-ae8c-4bc5-88f2-dbde2790f8b4","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon","page_number":242,"box":{"x":117,"y":87,"width":728,"height":12}},{"id":"fb23b020-6292-486d-bb60-1552fdadaa01","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":242,"box":{"x":191,"y":102,"width":667,"height":13}},{"id":"9959ec86-ff7c-40bd-b5b8-2a0aa8a59f1d","block_type":"box","text":"commitments on the obligation. In the event of adverse business, financial, or economic","page_number":242,"box":{"x":192,"y":118,"width":656,"height":12}},{"id":"9f82a123-a693-48cb-b8e8-5c84f20b892f","block_type":"box","text":"conditions, the obligor is not likely to have the capacity to meet its financial commitments","page_number":242,"box":{"x":192,"y":134,"width":662,"height":12}},{"id":"e73a28d4-8377-440f-84eb-cce9d5cb9955","block_type":"box","text":"on the obligation.","page_number":242,"box":{"x":192,"y":149,"width":132,"height":12}},{"id":"f335d6b3-25c1-4017-b580-42c6ecedb249","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is","page_number":242,"box":{"x":117,"y":172,"width":727,"height":12}},{"id":"982bc8e6-ac8e-4fc7-83b0-e0cf86a1f927","block_type":"box","text":"used when a default has not yet occurred but S&P expects default to be a virtual certainty,","page_number":242,"box":{"x":192,"y":188,"width":675,"height":12}},{"id":"2b5b2bac-9fd8-43e5-aad0-4f03bb5fb171","block_type":"box","text":"regardless of the anticipated time to default.","page_number":242,"box":{"x":192,"y":203,"width":330,"height":12}},{"id":"07b7529e-e698-427e-9ee5-6cf321b8de59","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is","page_number":242,"box":{"x":117,"y":227,"width":735,"height":12}},{"id":"34bcd8e6-8bb3-4ab5-94fc-70f1160e5e7f","block_type":"box","text":"expected to have lower relative seniority or lower ultimate recovery compared with","page_number":242,"box":{"x":192,"y":242,"width":615,"height":12}},{"id":"ac815362-98a9-41e5-a70d-23495716b015","block_type":"box","text":"obligations that are rated higher.","page_number":242,"box":{"x":192,"y":258,"width":245,"height":12}},{"id":"827165aa-9536-49a4-8a4b-6b57e165b89c","block_type":"box","text":"D An obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":242,"box":{"x":117,"y":281,"width":717,"height":12}},{"id":"38230c7f-e95d-4a24-8364-cf6bee3bb9ef","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not","page_number":242,"box":{"x":192,"y":296,"width":678,"height":12}},{"id":"08570a45-23e3-43e9-bbe9-acfc72fdb83e","block_type":"box","text":"made on the date due, unless S&P believes that such payments will be made within five","page_number":242,"box":{"x":192,"y":312,"width":657,"height":12}},{"id":"4d308633-16b9-4e09-a21d-1ea36ee16e22","block_type":"box","text":"business days in the absence of a stated grace period or within the earlier of the stated","page_number":242,"box":{"x":192,"y":327,"width":650,"height":12}},{"id":"33f1ee93-7363-4685-99d6-74c9cdccd6dc","block_type":"box","text":"grace period or 30 calendar days. The ‘D’ rating also will be used upon the filing of a","page_number":242,"box":{"x":191,"y":343,"width":630,"height":12}},{"id":"1fd1af84-4b8c-48f1-bb37-1064327f6e48","block_type":"box","text":"bankruptcy petition or the taking of similar action and where default on an obligation is a","page_number":242,"box":{"x":192,"y":358,"width":657,"height":12}},{"id":"d10dabf6-18c8-4b8e-b3b8-a35552aa3ca2","block_type":"box","text":"virtual certainty, for example due to automatic stay provisions. A rating on an obligation is","page_number":242,"box":{"x":191,"y":374,"width":668,"height":12}},{"id":"0b795ff2-37fa-4e8c-95b9-043099af15a7","block_type":"box","text":"lowered to ‘D’ if it is subject to a distressed debt restructuring.","page_number":242,"box":{"x":192,"y":389,"width":461,"height":12}},{"id":"7b8f4300-fad9-463d-a91b-7e543edb57dc","block_type":"box","text":"* Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing","page_number":242,"box":{"x":143,"y":418,"width":705,"height":9}},{"id":"1247610a-48f8-466f-8330-54fc5f2e26f0","block_type":"box","text":"within the rating categories.","page_number":242,"box":{"x":170,"y":431,"width":162,"height":9}},{"id":"b69622d6-ad55-4c62-a5cc-4235052d157e","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":242,"box":{"x":116,"y":458,"width":263,"height":12}},{"id":"8ea8ccb9-3a3c-4598-88ec-bda898191285","block_type":"box","text":"A-1 A short-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s","page_number":242,"box":{"x":116,"y":487,"width":715,"height":12}},{"id":"0ad2b2ec-ff85-40f8-aa61-aae81d1c9445","block_type":"box","text":"capacity to meet its financial commitments on the obligation is strong. Within this category,","page_number":242,"box":{"x":175,"y":502,"width":677,"height":12}},{"id":"a5621f35-a01d-4e2a-b425-547abb995e23","block_type":"box","text":"certain obligations are designated with a plus sign (+). This indicates that the obligor’s capacity","page_number":242,"box":{"x":175,"y":518,"width":708,"height":12}},{"id":"d3034f10-93c1-4b9e-b3cf-951f72ab7cde","block_type":"box","text":"to meet its financial commitments on these obligations is extremely strong.","page_number":242,"box":{"x":175,"y":533,"width":558,"height":12}},{"id":"2bb9ce00-e813-4ff4-9922-c2a3cc401d50","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of","page_number":242,"box":{"x":116,"y":556,"width":729,"height":12}},{"id":"1ad3415a-406f-4056-9ac3-04e3f40aa12f","block_type":"box","text":"changes in circumstances and economic conditions than obligations in higher rating","page_number":242,"box":{"x":175,"y":571,"width":626,"height":12}},{"id":"9362bbb5-2a23-44bd-bad5-3de251cdce0c","block_type":"box","text":"categories. However, the obligor’s capacity to meet its financial commitments on the obligation","page_number":242,"box":{"x":175,"y":587,"width":706,"height":12}},{"id":"39236bac-4a4d-48a3-9f11-67e0209354ef","block_type":"box","text":"is satisfactory.","page_number":242,"box":{"x":176,"y":602,"width":110,"height":12}},{"id":"cde8219d-dbc3-48cc-9076-f03f30836a15","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":242,"box":{"x":116,"y":624,"width":764,"height":13}},{"id":"0905d7a4-9fc1-4089-b104-c77fe11f6c42","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s","page_number":242,"box":{"x":175,"y":640,"width":648,"height":12}},{"id":"8f9a997b-e6a5-4379-b305-9d33b6c97eb4","block_type":"box","text":"capacity to meet its financial commitments on the obligation.","page_number":242,"box":{"x":175,"y":655,"width":453,"height":13}},{"id":"87892682-fa43-43f8-8be7-e657ccfce098","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":242,"box":{"x":117,"y":678,"width":719,"height":12}},{"id":"ebb62e89-3e54-4e3e-a36d-f7b5d29d55f2","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments;","page_number":242,"box":{"x":175,"y":693,"width":653,"height":12}},{"id":"90739dc3-1626-404b-8888-ef7b13687286","block_type":"box","text":"however, it faces major ongoing uncertainties that could lead to the obligor’s inadequate","page_number":242,"box":{"x":176,"y":709,"width":652,"height":12}},{"id":"edf0f2b7-073f-4481-89d4-ff704ddd28b5","block_type":"box","text":"capacity to meet its financial commitments.","page_number":242,"box":{"x":175,"y":724,"width":318,"height":12}},{"id":"ff93af70-08cf-4d2f-8702-e9156c56040f","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":242,"box":{"x":117,"y":747,"width":754,"height":12}},{"id":"5efa7046-3c15-4d92-ad2c-a836544f1ec5","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":242,"box":{"x":175,"y":762,"width":661,"height":12}},{"id":"1ae6cb05-858c-425e-abcc-06689ec4595d","block_type":"box","text":"commitments on the obligation.","page_number":242,"box":{"x":175,"y":778,"width":231,"height":12}},{"id":"1d667935-fbd1-4655-89d7-1fb65108aa85","block_type":"box","text":"D A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For","page_number":242,"box":{"x":117,"y":800,"width":684,"height":12}},{"id":"c121ef8d-7e64-483b-abfb-c33292b6980c","block_type":"box","text":"non-hybrid capital instruments, the ‘D’ rating category is used when payments on an obligation","page_number":242,"box":{"x":176,"y":815,"width":699,"height":12}},{"id":"9d0152bc-c30b-4d6c-8280-4b2c29f82a7f","block_type":"box","text":"are not made on the date due, unless S&P believes that such payments will be made within","page_number":242,"box":{"x":175,"y":831,"width":684,"height":12}},{"id":"2ae31ece-db21-48c0-842c-694e133a266f","block_type":"box","text":"any stated grace period. However, any stated grace period longer than five business days will","page_number":242,"box":{"x":175,"y":846,"width":700,"height":12}},{"id":"d922e487-d5b8-4b63-b735-02cbfb819c33","block_type":"box","text":"be treated as five business days. The ‘D’ rating also will be used upon the filing of a bankruptcy","page_number":242,"box":{"x":176,"y":862,"width":711,"height":12}},{"id":"e41ae35f-a8b5-44b9-a4aa-ee07b6c284d7","block_type":"box","text":"petition or the taking of a similar action and where default on an obligation is a virtual certainty,","page_number":242,"box":{"x":176,"y":877,"width":706,"height":12}},{"id":"ec4419d6-bf53-4783-b132-9ed82cfe39d0","block_type":"box","text":"A-6","page_number":242,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"e48a09a5-7ccd-419c-a7a6-cdf4a005ae37","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":242,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d150584c-de55-4b08-923c-42b3fe51497d","block_type":"box","text":"for example due to automatic stay provisions. A rating on an obligation is lowered to ‘D’ if it is","page_number":243,"box":{"x":175,"y":87,"width":695,"height":12}},{"id":"b6bf72dd-e4a6-4b75-966e-9c5f21db8356","block_type":"box","text":"subject to a distressed debt restructuring.","page_number":243,"box":{"x":175,"y":103,"width":312,"height":12}},{"id":"706a293c-1a7d-44df-ada0-c4801d5fef87","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":243,"box":{"x":117,"y":134,"width":456,"height":12}},{"id":"7b9f6bdd-463c-4c37-96d0-946f20de9ef5","block_type":"box","text":"An S&P U.S. municipal note rating reflects S&P’s opinion about the liquidity factors and market access","page_number":243,"box":{"x":116,"y":165,"width":766,"height":12}},{"id":"38ed777c-f3bd-41d4-82c5-635a478e0e09","block_type":"box","text":"risks unique to the notes. Notes due in three years or less will likely receive a note rating. Notes with","page_number":243,"box":{"x":117,"y":180,"width":748,"height":12}},{"id":"3f33c2f9-3199-4af8-bd30-68cf85f7bb78","block_type":"box","text":"an original maturity of more than three years will most likely receive a long-term debt rating. In","page_number":243,"box":{"x":116,"y":196,"width":703,"height":12}},{"id":"a7d21cc8-e719-4851-9d79-3756470a9f9e","block_type":"box","text":"determining which type of rating, if any, to assign, S&P’s analysis will review the following","page_number":243,"box":{"x":116,"y":211,"width":668,"height":12}},{"id":"b7e345fb-ab3b-459d-9db6-1dc72a45f7b0","block_type":"box","text":"considerations:","page_number":243,"box":{"x":116,"y":227,"width":118,"height":9}},{"id":"0d6e8217-7c6c-42db-b487-2d7b84a8c816","block_type":"box","text":"• Amortization schedule—the larger the final maturity relative to other maturities, the more likely","page_number":243,"box":{"x":150,"y":258,"width":736,"height":12}},{"id":"a1fd89ee-dc2c-4d6f-9c37-47acec0a6d91","block_type":"box","text":"it will be treated as a note; and","page_number":243,"box":{"x":184,"y":273,"width":232,"height":11}},{"id":"40fe24bb-da61-4d07-9545-51da3ca8ffe8","block_type":"box","text":"• Source of payment—the more dependent the issue is on the market for its refinancing, the","page_number":243,"box":{"x":150,"y":296,"width":709,"height":12}},{"id":"0adb57bc-dc65-40cc-be5e-cecb54012dd1","block_type":"box","text":"more likely it will be treated as a note.","page_number":243,"box":{"x":184,"y":312,"width":284,"height":12}},{"id":"af8b3344-1b0e-457c-909e-3c5bccf12700","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":243,"box":{"x":116,"y":343,"width":470,"height":12}},{"id":"6fc50ea4-cee2-44aa-a2fe-7d187e0f862f","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":243,"box":{"x":116,"y":374,"width":740,"height":12}},{"id":"e02c2687-150a-4b85-83c7-e27c27815bab","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":243,"box":{"x":175,"y":389,"width":445,"height":12}},{"id":"226da86a-c71b-432d-96e8-4e623f6596cf","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial","page_number":243,"box":{"x":116,"y":413,"width":757,"height":12}},{"id":"e9f43870-310a-4bf2-bf2e-8eb2fe2e93ab","block_type":"box","text":"and economic changes over the term of the notes.","page_number":243,"box":{"x":175,"y":428,"width":379,"height":12}},{"id":"3039e3d4-58f7-48eb-a8d2-7aa21495c1b1","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":243,"box":{"x":116,"y":451,"width":432,"height":12}},{"id":"665e4fbe-c360-44e6-8167-95be47d5fa26","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":243,"box":{"x":117,"y":475,"width":699,"height":12}},{"id":"d80872c6-1234-445a-95b3-976d72b7a998","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where","page_number":243,"box":{"x":176,"y":490,"width":670,"height":12}},{"id":"681f1592-f3f2-4cf6-a2a2-8cf8d0b3396b","block_type":"box","text":"default on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":243,"box":{"x":175,"y":506,"width":674,"height":12}},{"id":"cb19f819-0145-4a35-8b96-9a22abd1f4ea","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch’s”) Credit Ratings Scales","page_number":243,"box":{"x":117,"y":537,"width":498,"height":12}},{"id":"293f36d7-409f-4ced-894e-224515b957b2","block_type":"box","text":"Fitch Ratings publishes opinions on a variety of scales. The most common of these are credit ratings,","page_number":243,"box":{"x":117,"y":568,"width":756,"height":12}},{"id":"8b07c99e-bce3-4617-90af-72d6b29268c8","block_type":"box","text":"but the agency also publishes ratings, scores and other relative opinions relating to financial or","page_number":243,"box":{"x":117,"y":583,"width":706,"height":12}},{"id":"f53ec024-72c0-4d52-a23b-35fb3a53580d","block_type":"box","text":"operational strength. For example, Fitch also provides specialized ratings of servicers of residential","page_number":243,"box":{"x":116,"y":599,"width":740,"height":12}},{"id":"a145f374-eb56-4b73-8b0d-4ee3df55fe45","block_type":"box","text":"and commercial mortgages, asset managers and funds. In each case, users should refer to the","page_number":243,"box":{"x":116,"y":614,"width":711,"height":12}},{"id":"46e6d35a-587c-44f8-9d75-f26b62a59fa3","block_type":"box","text":"definitions of each individual scale for guidance on the dimensions of risk covered in each assessment.","page_number":243,"box":{"x":116,"y":630,"width":769,"height":12}},{"id":"062b4dab-016d-49fc-9d12-8319e8b76b57","block_type":"box","text":"Fitch’s credit ratings relating to issuers are an opinion on the relative ability of an entity to meet","page_number":243,"box":{"x":117,"y":661,"width":702,"height":12}},{"id":"cfdcdbee-7b13-44e2-a60b-0c5918bfead0","block_type":"box","text":"financial commitments, such as interest, preferred dividends, repayment of principal, insurance claims","page_number":243,"box":{"x":116,"y":676,"width":756,"height":12}},{"id":"ffc3c42d-9bd5-4189-830e-ea95125eae07","block_type":"box","text":"or counterparty obligations. Credit ratings relating to securities and obligations of an issuer can include","page_number":243,"box":{"x":116,"y":692,"width":761,"height":12}},{"id":"1e1895e5-834f-4ac0-873f-2e73c512b6c0","block_type":"box","text":"a recovery expectation. Credit ratings are used by investors as indications of the likelihood of receiving","page_number":243,"box":{"x":116,"y":707,"width":761,"height":12}},{"id":"ceb57039-2c9c-4dea-af81-882b09f52e2a","block_type":"box","text":"the money owed to them in accordance with the terms on which they invested. The agency’s credit","page_number":243,"box":{"x":116,"y":723,"width":733,"height":12}},{"id":"b61620ab-e0f9-4129-8bd2-58f0b4559be0","block_type":"box","text":"ratings cover the global spectrum of corporate, sovereign financial, bank, insurance, and public finance","page_number":243,"box":{"x":117,"y":738,"width":763,"height":12}},{"id":"64329e07-a00b-49e1-b934-b1e2c55b87ad","block_type":"box","text":"entities (including supranational and sub-national entities) and the securities or other obligations they","page_number":243,"box":{"x":116,"y":754,"width":749,"height":12}},{"id":"8880f039-9470-4ce9-ad20-238b8fe706aa","block_type":"box","text":"issue, as well as structured finance securities backed by receivables or other financial assets.","page_number":243,"box":{"x":117,"y":769,"width":692,"height":12}},{"id":"2672f419-fec0-46d6-be18-163ec37c75e6","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as","page_number":243,"box":{"x":116,"y":800,"width":718,"height":12}},{"id":"b8407230-845e-427a-83cf-715b547c37e2","block_type":"box","text":"shorthand to describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative","page_number":243,"box":{"x":116,"y":816,"width":732,"height":12}},{"id":"75d84438-ee56-4d06-adbe-82fa3ac89f6a","block_type":"box","text":"grade). The terms investment grade and speculative grade are market conventions and do not imply","page_number":243,"box":{"x":116,"y":831,"width":749,"height":12}},{"id":"249adc8c-ec26-4c39-bcab-a0039efdb6ae","block_type":"box","text":"any recommendation or endorsement of a specific security for investment purposes. Investment grade","page_number":243,"box":{"x":116,"y":847,"width":764,"height":12}},{"id":"0fa28295-3a08-4626-84e4-05bbe3befbce","block_type":"box","text":"categories indicate relatively low to moderate credit risk, while ratings in the speculative categories","page_number":243,"box":{"x":116,"y":862,"width":737,"height":12}},{"id":"33a19c02-75f9-404e-9a84-82d2173a7812","block_type":"box","text":"either signal a higher level of credit risk or that a default has already occurred.","page_number":243,"box":{"x":116,"y":878,"width":584,"height":12}},{"id":"f044241f-2ef6-4f57-883d-12e349069dd0","block_type":"box","text":"A-7","page_number":243,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"475a661c-0f86-4c5b-a3ae-8308041dc3b5","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":243,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d963c559-4110-4bc5-befe-a9b3d46c1157","block_type":"box","text":"For the convenience of investors, Fitch may also include issues relating to a rated issuer that are not","page_number":244,"box":{"x":117,"y":87,"width":750,"height":12}},{"id":"f43172f6-225b-42fa-b915-25736f073285","block_type":"box","text":"and have not been rated on its web page. Such issues are also denoted as ‘NR’.","page_number":244,"box":{"x":116,"y":102,"width":603,"height":13}},{"id":"f9315a6e-23aa-4686-9f17-a313f34853f2","block_type":"box","text":"Credit ratings express risk in relative rank order, which is to say they are ordinal measures of credit risk","page_number":244,"box":{"x":117,"y":132,"width":770,"height":12}},{"id":"a64c220e-7651-4bc2-a54f-0cda0e3f04d7","block_type":"box","text":"and are not predictive of a specific frequency of default or loss. For information about the historical","page_number":244,"box":{"x":116,"y":147,"width":735,"height":12}},{"id":"4006b89f-e6e6-4d82-a661-5b38e079a277","block_type":"box","text":"performance of ratings please refer to Fitch’s Ratings Transition and Default studies which detail the","page_number":244,"box":{"x":117,"y":163,"width":747,"height":12}},{"id":"e71a4e0a-d455-4fbc-bcc9-0cad1b2dfc9a","block_type":"box","text":"historical default rates and their meaning. The European Securities and Markets Authority also","page_number":244,"box":{"x":117,"y":178,"width":705,"height":12}},{"id":"92f71a13-90eb-44d4-9e8d-37c355d1925a","block_type":"box","text":"maintains a central repository of historical default rates.","page_number":244,"box":{"x":117,"y":194,"width":415,"height":12}},{"id":"d49d5e67-a67d-4752-8da6-dc94102bd851","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not","page_number":244,"box":{"x":117,"y":223,"width":756,"height":12}},{"id":"f98ca522-1328-4bc8-be46-f96ded696e28","block_type":"box","text":"deal with the risk of a market value loss on a rated security due to changes in interest rates, liquidity","page_number":244,"box":{"x":116,"y":239,"width":747,"height":12}},{"id":"51b6fdef-4dc3-4b2d-9d3e-0e67a1aa3f21","block_type":"box","text":"and other market considerations. However, in terms of payment obligation on the rated liability, market","page_number":244,"box":{"x":116,"y":254,"width":765,"height":12}},{"id":"035bf8dd-87e9-44fb-ac23-836c4f2a3ef3","block_type":"box","text":"risk may be considered to the extent that it influences the ability of an issuer to pay upon a","page_number":244,"box":{"x":117,"y":270,"width":674,"height":12}},{"id":"422e6c10-a063-4953-a39a-48cd0b2ac822","block_type":"box","text":"commitment.","page_number":244,"box":{"x":116,"y":285,"width":101,"height":10}},{"id":"169508fd-c568-45e6-a9bc-fcf3ac66f4fb","block_type":"box","text":"Ratings nonetheless do not reflect market risk to the extent that they influence the size or other","page_number":244,"box":{"x":117,"y":314,"width":709,"height":12}},{"id":"061d8247-469e-4932-906d-fac5fcad73fb","block_type":"box","text":"conditionality of the obligation to pay upon a commitment (for example, in the case of index-linked","page_number":244,"box":{"x":116,"y":330,"width":731,"height":12}},{"id":"c8afac92-b467-40e1-903a-8d456e6c4d67","block_type":"box","text":"bonds).","page_number":244,"box":{"x":117,"y":345,"width":59,"height":12}},{"id":"cfb4ab40-ad31-4121-88c9-d79e579cc9d1","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency","page_number":244,"box":{"x":117,"y":375,"width":725,"height":12}},{"id":"b0634f68-37e8-4952-83b1-b38aad5d1713","block_type":"box","text":"typically rates to the likelihood of non-payment or default in accordance with the terms of that","page_number":244,"box":{"x":116,"y":390,"width":695,"height":12}},{"id":"a419f85d-a50d-46c7-80cf-5359536c1439","block_type":"box","text":"instrument’s documentation. In limited cases, Fitch may include additional considerations (i.e. rate to a","page_number":244,"box":{"x":117,"y":406,"width":764,"height":12}},{"id":"729c5104-8a28-48ff-b65a-ed3f866a9dab","block_type":"box","text":"higher or lower standard than that implied in the obligation’s documentation).","page_number":244,"box":{"x":117,"y":421,"width":573,"height":12}},{"id":"3588d4e3-1b6d-4cb8-88ef-cb37d55e837f","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or","page_number":244,"box":{"x":116,"y":450,"width":719,"height":12}},{"id":"445e5f16-7bc6-43d0-80d1-0147a2b1c393","block_type":"box","text":"certain note issuance programs or for private ratings. In this case the rating is not published, but only","page_number":244,"box":{"x":116,"y":466,"width":753,"height":12}},{"id":"ef3cb569-47d1-4b17-946c-a21331dafe25","block_type":"box","text":"provided to the issuer or its agents in the form of a rating letter.","page_number":244,"box":{"x":117,"y":481,"width":472,"height":12}},{"id":"e9574ec3-ddee-45d6-a39c-c38642903a1c","block_type":"box","text":"The primary credit rating scales may also be used to provide ratings for a more narrow scope,","page_number":244,"box":{"x":116,"y":511,"width":702,"height":12}},{"id":"de4b1ec3-c9d8-4b8a-8c4a-f327b2041c7d","block_type":"box","text":"including interest strips and return of principal or in other forms of opinions such as credit opinions or","page_number":244,"box":{"x":117,"y":526,"width":751,"height":12}},{"id":"6f1d93a9-3cc2-42ea-814e-a0a5666d7b01","block_type":"box","text":"rating assessment services. Credit opinions are either a notch- or category-specific view using the","page_number":244,"box":{"x":117,"y":542,"width":731,"height":12}},{"id":"098ec3e4-4817-4864-83bd-86ba5cb8875a","block_type":"box","text":"primary rating scale and omit one or more characteristics of a full rating or meet them to a different","page_number":244,"box":{"x":117,"y":557,"width":736,"height":12}},{"id":"408c44e4-481d-4dd2-bb81-7836ddd200c9","block_type":"box","text":"standard. Credit opinions will be indicated using a lower case letter symbol combined with either an ‘*’","page_number":244,"box":{"x":116,"y":573,"width":760,"height":12}},{"id":"02680f30-c01e-49ad-9923-2125c366b68f","block_type":"box","text":"(e.g. ‘bbb+*’) or (cat) suffix to denote the opinion status. Credit opinions will be point-in-time typically","page_number":244,"box":{"x":117,"y":588,"width":748,"height":12}},{"id":"b995f960-d8eb-4ebd-9c72-a4c015547bcf","block_type":"box","text":"but may be monitored if the analytical group believes information will be sufficiently available. Rating","page_number":244,"box":{"x":117,"y":604,"width":748,"height":12}},{"id":"6daf8c53-8b22-4084-a170-e19deeccaa8e","block_type":"box","text":"assessment services are a notch-specific view using the primary rating scale of how an existing or","page_number":244,"box":{"x":116,"y":619,"width":733,"height":12}},{"id":"0f9359d4-bd3b-49a6-bafd-013fee0384ff","block_type":"box","text":"potential rating may be changed by a given set of hypothetical circumstances. While credit opinions","page_number":244,"box":{"x":117,"y":635,"width":742,"height":12}},{"id":"e8e23359-d5de-4695-9dac-565367647dda","block_type":"box","text":"and rating assessment services are point-in-time and are not monitored, they may have a directional","page_number":244,"box":{"x":116,"y":650,"width":750,"height":12}},{"id":"e9f286f9-e14f-4f65-ac73-d2e434320246","block_type":"box","text":"watch or outlook assigned, which can signify the trajectory of the credit profile.","page_number":244,"box":{"x":116,"y":666,"width":579,"height":12}},{"id":"63994ff6-0ba9-4678-abce-43081f26c63f","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":244,"box":{"x":117,"y":695,"width":629,"height":12}},{"id":"09e624be-2c11-4091-ab8a-6e3dd88f0daf","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative","page_number":244,"box":{"x":117,"y":724,"width":677,"height":12}},{"id":"356e5620-b5ab-40b5-9c66-41d1aaae596c","block_type":"box","text":"vulnerability to default on an ordinal scale. In addition, for financial obligations in corporate finance, a","page_number":244,"box":{"x":116,"y":740,"width":746,"height":12}},{"id":"45ffead8-f6cf-49fd-b4df-55a18470c005","block_type":"box","text":"measure of recovery given default on that liability is also included in the rating assessment. This","page_number":244,"box":{"x":117,"y":755,"width":711,"height":12}},{"id":"65d838c0-af0c-4393-9f64-6f236405bdcb","block_type":"box","text":"notably applies to covered bonds ratings, which incorporate both an indication of the probability of","page_number":244,"box":{"x":117,"y":771,"width":725,"height":12}},{"id":"c304608e-5c8d-4199-8d0e-841951fea86e","block_type":"box","text":"default and of the recovery given a default of this debt instrument. On the contrary, Ratings of","page_number":244,"box":{"x":116,"y":786,"width":695,"height":12}},{"id":"246d4f14-9d2c-4238-bd16-db3c64eb1b60","block_type":"box","text":"debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":244,"box":{"x":116,"y":802,"width":636,"height":12}},{"id":"725c7dd6-ea6c-41cc-b2af-dddfd0ea2a48","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average","page_number":244,"box":{"x":116,"y":831,"width":750,"height":12}},{"id":"ecce395b-22ea-4450-a189-691f6663a74e","block_type":"box","text":"recovery. Individual obligations can be assigned ratings higher, lower, or the same as that entity’s","page_number":244,"box":{"x":117,"y":847,"width":728,"height":12}},{"id":"cb2c966c-80aa-450f-b352-69c5db22578a","block_type":"box","text":"issuer rating or issuer default rating (“IDR”), based on their relative ranking, relative vulnerability to","page_number":244,"box":{"x":117,"y":862,"width":733,"height":12}},{"id":"db501ab2-7637-4a2b-9778-49b37c9fca79","block_type":"box","text":"default or based on explicit Recovery Ratings.","page_number":244,"box":{"x":116,"y":877,"width":347,"height":13}},{"id":"39295807-cb2f-4d8d-b81c-c2f3508fa812","block_type":"box","text":"A-8","page_number":244,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"8d024e98-ceb0-47de-b36f-73ad2c30c16b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":244,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a2ebdf33-9c1b-4019-95f5-25e287116e01","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower,","page_number":245,"box":{"x":116,"y":87,"width":756,"height":12}},{"id":"ab261679-07c5-4c63-a757-b926e44558ab","block_type":"box","text":"or the same as that entity’s issuer rating or IDR, except DIP obligation ratings that are not based off an","page_number":245,"box":{"x":116,"y":102,"width":766,"height":13}},{"id":"b235c815-aeb1-4bc3-97e8-537a1c86dfb8","block_type":"box","text":"IDR. At the lower end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to","page_number":245,"box":{"x":117,"y":118,"width":756,"height":12}},{"id":"f07ffed7-b1e2-40ed-abb9-92bb9aacb438","block_type":"box","text":"complement issuer and obligation ratings.","page_number":245,"box":{"x":116,"y":134,"width":315,"height":12}},{"id":"28f9ed67-9293-4386-ab7a-f1e3559c1e1f","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":245,"box":{"x":117,"y":165,"width":412,"height":12}},{"id":"c0998890-17bc-481e-a72c-c932b62cdbe7","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of credit risk. They are","page_number":245,"box":{"x":116,"y":196,"width":731,"height":12}},{"id":"ad0c882d-07bd-4000-82e2-fa5e5b01af59","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments.","page_number":245,"box":{"x":175,"y":211,"width":700,"height":12}},{"id":"c62de07c-2146-402c-8b88-75e84d8bf189","block_type":"box","text":"This capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":245,"box":{"x":175,"y":227,"width":586,"height":12}},{"id":"0969c457-4e1b-4060-9041-9ce3fdc14dcf","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low credit risk. They indicate","page_number":245,"box":{"x":116,"y":250,"width":765,"height":12}},{"id":"699b79bb-4127-4472-9f73-ffc4852407ce","block_type":"box","text":"very strong capacity for payment of financial commitments. This capacity is not significantly","page_number":245,"box":{"x":175,"y":265,"width":682,"height":12}},{"id":"ccf077ef-bbc6-4b8a-aa63-3a6cd8ee6a41","block_type":"box","text":"vulnerable to foreseeable events.","page_number":245,"box":{"x":175,"y":281,"width":252,"height":9}},{"id":"ae1a9cc5-45fd-4f8e-9b3e-a597e6054d58","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low credit risk. The capacity for payment","page_number":245,"box":{"x":116,"y":304,"width":767,"height":12}},{"id":"5dface31-ac27-43e0-9421-d0ceb731be0d","block_type":"box","text":"of financial commitments is considered strong. This capacity may, nevertheless, be more","page_number":245,"box":{"x":175,"y":320,"width":665,"height":12}},{"id":"c25e4683-ae97-4d7d-a6b7-63b67a7f24a6","block_type":"box","text":"vulnerable to adverse business or economic conditions than is the case for higher ratings.","page_number":245,"box":{"x":175,"y":335,"width":671,"height":12}},{"id":"0c8a6695-c72a-4a79-8652-978ed9266e1d","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of credit risk are currently low.","page_number":245,"box":{"x":117,"y":358,"width":739,"height":12}},{"id":"e8a4f3d1-acc8-4d32-9196-b8d6925c17e7","block_type":"box","text":"The capacity for payment of financial commitments is considered adequate, but adverse","page_number":245,"box":{"x":175,"y":374,"width":659,"height":12}},{"id":"c1e14861-0dcd-46ce-8bf9-00badd787e74","block_type":"box","text":"business or economic conditions are more likely to impair this capacity.","page_number":245,"box":{"x":176,"y":389,"width":532,"height":12}},{"id":"7d644f92-eb95-4e09-9efb-c19a54937d13","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to credit risk, particularly in the event","page_number":245,"box":{"x":117,"y":413,"width":769,"height":12}},{"id":"e0d3d9c1-78ab-4faf-8c92-14adfe7267c6","block_type":"box","text":"of adverse changes in business or economic conditions over time; however, business or","page_number":245,"box":{"x":175,"y":428,"width":659,"height":12}},{"id":"3bb07add-1d0a-433c-a298-4e805e852e62","block_type":"box","text":"financial alternatives may be available to allow financial commitments to be met.","page_number":245,"box":{"x":175,"y":444,"width":600,"height":12}},{"id":"cc030aa4-049e-4c5f-9bc1-034388ea44fa","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material credit risk is present.","page_number":245,"box":{"x":117,"y":467,"width":603,"height":12}},{"id":"97c19865-8231-428a-a4e9-42a3548ca8d8","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate that substantial credit risk is present.","page_number":245,"box":{"x":117,"y":490,"width":681,"height":12}},{"id":"0e103b85-eccc-4fe1-ab67-52ceb36ac528","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate very high levels of credit risk.","page_number":245,"box":{"x":117,"y":513,"width":675,"height":12}},{"id":"89e1d2d4-ad60-43ca-9c68-094ce7bf0f4a","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ indicates exceptionally high levels of credit risk.","page_number":245,"box":{"x":117,"y":537,"width":746,"height":12}},{"id":"cef434fa-9c71-4f41-be6a-19177c1b13d7","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating","page_number":245,"box":{"x":116,"y":568,"width":765,"height":12}},{"id":"23b16d00-5a1b-4d2b-8618-3c9817e48623","block_type":"box","text":"to denote relative status within major rating categories.","page_number":245,"box":{"x":116,"y":583,"width":411,"height":12}},{"id":"5076b12a-1aa3-49aa-8c90-fd3cec93a809","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a","page_number":245,"box":{"x":117,"y":614,"width":755,"height":12}},{"id":"b3b1c3e4-3441-41ac-b7bf-5bfc26fa4fdf","block_type":"box","text":"rating level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For","page_number":245,"box":{"x":117,"y":630,"width":745,"height":12}},{"id":"6c742104-eb70-47f8-bd89-cc33f694c3f1","block_type":"box","text":"the short-term rating category of ‘F1’, a ‘+’ may be appended.","page_number":245,"box":{"x":116,"y":645,"width":461,"height":12}},{"id":"e66b140c-61a1-4b9c-86be-5906caa2872a","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":245,"box":{"x":117,"y":676,"width":629,"height":12}},{"id":"0caaa926-ad16-4ad7-b60b-13eb37c1d251","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of","page_number":245,"box":{"x":116,"y":707,"width":760,"height":12}},{"id":"5a6e5ea4-27fb-4fe7-b9bd-cbc710b10085","block_type":"box","text":"the rated entity and relates to the capacity to meet financial obligations in accordance with the","page_number":245,"box":{"x":116,"y":723,"width":696,"height":12}},{"id":"dbe0e405-23c8-47a7-bb8c-3502d04aaa7c","block_type":"box","text":"documentation governing the relevant obligation. Short-term deposit ratings may be adjusted for loss","page_number":245,"box":{"x":116,"y":738,"width":748,"height":12}},{"id":"833c7c3a-be44-4ea0-a4d6-c88ab1306d57","block_type":"box","text":"severity. Short-term ratings are assigned to obligations whose initial maturity is viewed as “short term”","page_number":245,"box":{"x":116,"y":754,"width":755,"height":12}},{"id":"20364e3e-8cbe-4ac6-8c18-37918af3b16e","block_type":"box","text":"based on market convention. Typically, this means up to 13 months for corporate, sovereign, and","page_number":245,"box":{"x":117,"y":769,"width":720,"height":12}},{"id":"d9b1cd8e-e116-4875-b0c7-1830f2dc5f6d","block_type":"box","text":"structured obligations and up to 36 months for obligations in U.S. public finance markets.","page_number":245,"box":{"x":116,"y":785,"width":658,"height":12}},{"id":"0536c2ce-71db-4e05-b2fe-33ceb77a1129","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":245,"box":{"x":117,"y":816,"width":283,"height":12}},{"id":"cfb49cee-dc57-4e8c-9d1b-f539e510dae2","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment","page_number":245,"box":{"x":117,"y":847,"width":765,"height":12}},{"id":"0a74f477-3485-424b-a1c3-1da54117020c","block_type":"box","text":"of financial commitments; may have an added “+” to denote any exceptionally strong credit","page_number":245,"box":{"x":175,"y":862,"width":679,"height":12}},{"id":"8f0ec390-81ba-49b8-99a7-6c6658ac5698","block_type":"box","text":"feature.","page_number":245,"box":{"x":175,"y":878,"width":61,"height":9}},{"id":"a21eb3a7-fe9b-4e1c-82d8-9b46cb01f519","block_type":"box","text":"A-9","page_number":245,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"bc0fdf4c-9e51-4379-a1da-b4f2e3ac137e","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":245,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4370843a-cb6b-4a59-8904-9b3602ad43dc","block_type":"box","text":"F2 Good Short-Term Credit Quality.","page_number":246,"box":{"x":117,"y":87,"width":299,"height":12}},{"id":"ee4892b3-2593-49ab-9128-9f8b9d62997b","block_type":"box","text":"Good intrinsic capacity for timely payment of financial","page_number":246,"box":{"x":423,"y":87,"width":400,"height":12}},{"id":"63ffe11a-c701-4ee8-a0ae-2921472b1afb","block_type":"box","text":"commitments.","page_number":246,"box":{"x":175,"y":103,"width":109,"height":9}},{"id":"1c5abd99-6863-4885-b100-70f725ad46ed","block_type":"box","text":"F3 Fair Short-Term Credit Quality.","page_number":246,"box":{"x":117,"y":126,"width":286,"height":12}},{"id":"609e4f39-c3cb-4089-adb1-3e70b8e68d06","block_type":"box","text":"The intrinsic capacity for timely payment of financial","page_number":246,"box":{"x":410,"y":126,"width":389,"height":12}},{"id":"7cadb71a-ec9d-4c24-ab21-dd66dbaf4db0","block_type":"box","text":"commitments is adequate.","page_number":246,"box":{"x":175,"y":141,"width":201,"height":12}},{"id":"6a1e8596-9982-4893-988e-d3706cf675ac","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":246,"box":{"x":117,"y":165,"width":707,"height":12}},{"id":"ba639ef1-d811-4613-bab0-f621fc4e699a","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":246,"box":{"x":175,"y":180,"width":671,"height":12}},{"id":"78e3786b-4321-4dd2-9e27-30df4a56660e","block_type":"box","text":"economic conditions.","page_number":246,"box":{"x":175,"y":196,"width":161,"height":9}},{"id":"b6c0b5b8-1172-45b5-a22c-e1294599477d","block_type":"box","text":"C High Short-Term Default Risk.","page_number":246,"box":{"x":117,"y":219,"width":281,"height":12}},{"id":"81e6e5f5-9b61-4b2c-a797-c7ea7fb848d6","block_type":"box","text":"Default is a real possibility.","page_number":246,"box":{"x":405,"y":219,"width":203,"height":12}},{"id":"863c15d5-1f0a-4038-8c87-38c2dd8adacc","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":246,"box":{"x":117,"y":242,"width":705,"height":12}},{"id":"44a9114b-63d4-4f28-b655-ca549b2a5424","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to","page_number":246,"box":{"x":175,"y":258,"width":697,"height":12}},{"id":"85a3aba7-00fd-4dd6-a306-17bd8c016c0e","block_type":"box","text":"entity ratings only.","page_number":246,"box":{"x":175,"y":273,"width":140,"height":12}},{"id":"b5e21aaa-addd-47ba-8669-104253956672","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a short-term","page_number":246,"box":{"x":117,"y":296,"width":721,"height":12}},{"id":"4f9f8766-d325-499a-8a14-7c5e127b19c3","block_type":"box","text":"obligation.","page_number":246,"box":{"x":175,"y":312,"width":81,"height":12}},{"id":"0923ac29-7b26-4c87-8f10-cf66bf29dd38","block_type":"box","text":"A-10","page_number":246,"box":{"x":482,"y":909,"width":35,"height":9}},{"id":"77d9fb22-368f-4c94-8643-905f1c552e6e","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":246,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8f253948-fdbb-428c-ba15-33c8422640ef","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":247,"box":{"x":380,"y":87,"width":508,"height":12}},{"id":"16ea48f6-3239-44c8-871b-3e97c688617f","block_type":"box","text":"Appendix B","page_number":247,"box":{"x":453,"y":118,"width":98,"height":11}},{"id":"8ffc401c-f3f6-4244-855f-babd12b650d2","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":247,"box":{"x":230,"y":148,"width":544,"height":12}},{"id":"763f72a6-27a1-4785-9307-367d5f4e7392","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":247,"box":{"x":229,"y":178,"width":547,"height":12}},{"id":"c71c7668-1e15-4815-8c94-2dceb564743d","block_type":"box","text":"Effective Date: January 1, 2025","page_number":247,"box":{"x":383,"y":209,"width":239,"height":12}},{"id":"3be92af3-fb70-4f3e-881f-9d44a4adcfa6","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":247,"box":{"x":116,"y":247,"width":566,"height":12}},{"id":"53a81937-b343-4bbe-900b-04ac4d7dc496","block_type":"box","text":"‘","page_number":247,"box":{"x":116,"y":276,"width":16,"height":12}},{"id":"5aefa2b0-adac-4435-8e33-943d3a9c2031","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":247,"box":{"x":132,"y":277,"width":444,"height":12}},{"id":"0486250b-7e4f-4b25-b790-48139fbcf8bd","block_type":"box","text":"È","page_number":247,"box":{"x":116,"y":292,"width":16,"height":12}},{"id":"190d14ff-88f4-4608-9de7-78e33f5c13b8","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":247,"box":{"x":132,"y":293,"width":663,"height":12}},{"id":"ff369c6a-66ae-441f-ba89-ae0b809d82b7","block_type":"box","text":"‘","page_number":247,"box":{"x":116,"y":307,"width":16,"height":12}},{"id":"4b81d45a-de0c-424a-9ff7-eb5fce24280f","block_type":"box","text":"Money Market Funds","page_number":247,"box":{"x":132,"y":308,"width":180,"height":12}},{"id":"11946670-2f3d-43a4-b16a-26d25b7c78e6","block_type":"box","text":"‘","page_number":247,"box":{"x":116,"y":323,"width":16,"height":12}},{"id":"49b65eac-2951-4c2b-90b4-24b511f00ab9","block_type":"box","text":"Closed-End Funds","page_number":247,"box":{"x":132,"y":324,"width":161,"height":9}},{"id":"7442ae79-ca52-423b-9d7c-ffadbf3bd3a5","block_type":"box","text":"‘","page_number":247,"box":{"x":116,"y":338,"width":16,"height":12}},{"id":"d8291464-fdad-4304-b60f-02b167cb2e26","block_type":"box","text":"Other","page_number":247,"box":{"x":132,"y":339,"width":64,"height":10}},{"id":"2a7893f2-0159-4b63-9b6c-251dc8107cf2","block_type":"box","text":"Objective and Scope","page_number":247,"box":{"x":116,"y":369,"width":170,"height":13}},{"id":"7f1572a7-2f47-4ba3-839f-fc4585a8a803","block_type":"box","text":"Set forth below is the Open-End Active and Fixed Income Index Fund Proxy Voting Policy.","page_number":247,"box":{"x":116,"y":400,"width":675,"height":12}},{"id":"7d4ffeba-0252-49e1-8fb8-68f8cce18882","block_type":"box","text":"Policy / Document Requirements and Statements","page_number":247,"box":{"x":117,"y":430,"width":396,"height":12}},{"id":"56e62872-044a-4094-af94-7e0fbb0bc079","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":247,"box":{"x":116,"y":461,"width":730,"height":12}},{"id":"b390fc07-0673-4ff3-8e1d-154a531b37c7","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the","page_number":247,"box":{"x":117,"y":476,"width":743,"height":12}},{"id":"4072a2df-6038-48b5-bd8f-e20a808248ba","block_type":"box","text":"oversight of voting proxies relating to portfolio securities of the Funds, and have determined that it is in","page_number":247,"box":{"x":116,"y":492,"width":765,"height":12}},{"id":"3b89bfbf-4c0b-4ac5-a2e0-1eb1c5e8fb9b","block_type":"box","text":"the best interests of the Funds and their shareholders to delegate the responsibility to vote proxies to","page_number":247,"box":{"x":116,"y":507,"width":754,"height":12}},{"id":"24d321e6-152d-4a29-9da5-4eb9965b375d","block_type":"box","text":"BlackRock, subject to the principles outlined in this Policy, as part of BlackRock’s authority to manage,","page_number":247,"box":{"x":117,"y":523,"width":764,"height":12}},{"id":"079fc0ec-e9cd-410e-87fb-3e0d8421bc04","block_type":"box","text":"acquire and dispose of account assets, all as contemplated by the Funds’ respective investment","page_number":247,"box":{"x":116,"y":538,"width":718,"height":12}},{"id":"480221f1-b66c-49d2-a90e-4cf12cabdc74","block_type":"box","text":"management 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The team is responsible for establishing","page_number":252,"box":{"x":116,"y":180,"width":739,"height":12}},{"id":"79cc7718-991c-4499-a51e-523646314026","block_type":"box","text":"voting guidelines for the active equity platform, providing vote recommendations and operationalizing","page_number":252,"box":{"x":116,"y":196,"width":754,"height":12}},{"id":"def5bbc7-a661-45b7-96e1-f98fd841ca66","block_type":"box","text":"voting decisions. The guidance informs the voting recommendations BAIS makes to BlackRock’s","page_number":252,"box":{"x":116,"y":211,"width":724,"height":12}},{"id":"da28b1eb-6a4c-4347-9581-e6db638e2052","block_type":"box","text":"active portfolio managers. It applies to active equity holdings in BlackRock’s fundamental equity,","page_number":252,"box":{"x":116,"y":227,"width":719,"height":12}},{"id":"80c3be18-4787-4984-bf6e-61d467368448","block_type":"box","text":"systematic equity and multi-asset solutions strategies. It also may apply to holdings in BlackRock’s","page_number":252,"box":{"x":116,"y":242,"width":737,"height":12}},{"id":"25709ef1-045b-4787-a8d2-9d0fb399bd4b","block_type":"box","text":"index and active fixed income strategies, to the extent those strategies hold voting securities or","page_number":252,"box":{"x":117,"y":258,"width":709,"height":12}},{"id":"21224558-0dfd-4067-ae24-97df47fbd7dd","block_type":"box","text":"conduct issuer engagements. The guidelines are not prescriptive as active portfolio managers have","page_number":252,"box":{"x":116,"y":273,"width":742,"height":12}},{"id":"d8e4dca9-8056-4734-b5de-e895233016d8","block_type":"box","text":"discretion as to how they integrate these guidelines within their investment processes in light of their","page_number":252,"box":{"x":116,"y":289,"width":748,"height":12}},{"id":"c81639c4-ff41-4043-a378-380c4608c540","block_type":"box","text":"clients’ or funds’ investment objectives. There are separate, independently developed principles and","page_number":252,"box":{"x":116,"y":304,"width":748,"height":12}},{"id":"5e6c995f-003d-40b2-9a7d-1e4b67becd0d","block_type":"box","text":"voting policies that are applied to BlackRock’s index equity investments by a distinct and independent","page_number":252,"box":{"x":116,"y":320,"width":758,"height":12}},{"id":"69cbcebe-00da-40b6-a9c7-eef526ee974e","block_type":"box","text":"function, BlackRock Investment Stewardship.","page_number":252,"box":{"x":116,"y":335,"width":341,"height":12}},{"id":"d70b5df7-6b87-4643-ba02-3091d26985cd","block_type":"box","text":"1","page_number":252,"box":{"x":144,"y":787,"width":2,"height":4}},{"id":"ca0a505f-aff8-44e7-9fff-9ccf9cf56eb1","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":252,"box":{"x":170,"y":787,"width":653,"height":9}},{"id":"a3a9ee33-6b6e-44e0-b47c-5fd3dfa6bc01","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":252,"box":{"x":170,"y":799,"width":685,"height":10}},{"id":"039db13f-fb22-443d-9670-2bb6a570acdc","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities or","page_number":252,"box":{"x":170,"y":812,"width":709,"height":10}},{"id":"a7ba663f-8fa1-4988-a024-56cbbd2d91a7","block_type":"box","text":"conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":252,"box":{"x":170,"y":825,"width":676,"height":10}},{"id":"872bed9e-5bea-4a41-8540-5ba463b22139","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":252,"box":{"x":171,"y":838,"width":631,"height":10}},{"id":"92ed4501-4835-40c7-937d-27ef4cf0db80","block_type":"box","text":"2","page_number":252,"box":{"x":143,"y":854,"width":4,"height":5}},{"id":"0a12b2f0-0475-4748-8173-93552aee2eae","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part of a","page_number":252,"box":{"x":171,"y":854,"width":709,"height":9}},{"id":"13a6302c-43e0-404b-bad1-eea1c68eb27d","block_type":"box","text":"strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. As a result,","page_number":252,"box":{"x":170,"y":867,"width":692,"height":9}},{"id":"f9a1e044-6582-4410-867d-fc5612b5fdc9","block_type":"box","text":"there are two stewardship teams, which operate independently of one another and have separate voting policies.","page_number":252,"box":{"x":170,"y":880,"width":669,"height":9}},{"id":"1b327a5a-da1f-49bb-bae4-9989c372be8b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":252,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"f3639c44-895e-4d39-9368-a371811cbfc5","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":252,"box":{"x":539,"y":909,"width":324,"height":12}},{"id":"17560138-5fa3-4fd0-a3da-1d6bfd703dee","block_type":"box","text":"3","page_number":252,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"09c55afb-d26e-4ef8-8da0-7b974e3aa8fc","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":252,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"70c0ccfd-8a9d-43be-af2c-a60ed3232e4b","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":253,"box":{"x":366,"y":87,"width":273,"height":10}},{"id":"9971a1ad-ae7e-45af-ab3f-5bb8b4bdede0","block_type":"box","text":"BlackRock’s mission is to help more people invest better. The money BlackRock manages is not its","page_number":253,"box":{"x":117,"y":117,"width":741,"height":12}},{"id":"c143e69a-ea68-4a2e-9f5e-9ab8069d67d4","block_type":"box","text":"own – it belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio","page_number":253,"box":{"x":116,"y":133,"width":749,"height":12}},{"id":"8c12a1cd-8c37-4355-853c-57166281ec5d","block_type":"box","text":"construction decisions. As a fiduciary, BlackRock invests on clients’ behalf to help them meet their","page_number":253,"box":{"x":116,"y":148,"width":733,"height":12}},{"id":"8e1e14f8-f933-4dc5-ac01-dee43cd711de","block_type":"box","text":"investment objectives. The firm does this by understanding clients’ long-term investment objectives","page_number":253,"box":{"x":117,"y":164,"width":739,"height":12}},{"id":"65680130-7c09-42ee-8e4b-942362fd8d6c","block_type":"box","text":"and offering choice on how and where they wish to invest their money. BlackRock then helps clients","page_number":253,"box":{"x":116,"y":179,"width":747,"height":12}},{"id":"795e2103-7c02-46e2-bb1f-d57dba31f483","block_type":"box","text":"seek the best risk-adjusted returns based on those choices, underpinning this work with research, data","page_number":253,"box":{"x":116,"y":195,"width":768,"height":12}},{"id":"df93e1bf-09a0-4c69-b12b-15a788a4dc99","block_type":"box","text":"and analytics.","page_number":253,"box":{"x":116,"y":210,"width":107,"height":12}},{"id":"4d1709c5-be24-40e7-be55-c413c9cd4215","block_type":"box","text":"At BlackRock, investment stewardship is core to our role as an asset manager and a fiduciary to our","page_number":253,"box":{"x":116,"y":241,"width":748,"height":12}},{"id":"e66cbd14-fa18-4d98-9155-cbf7af49ebb5","block_type":"box","text":"clients. As stewards of our clients’ assets, we engage with companies to discuss the corporate","page_number":253,"box":{"x":116,"y":256,"width":706,"height":12}},{"id":"560d70ee-e603-48e1-8ab9-d5fa35108232","block_type":"box","text":"governance and business practices that, in our experience, support companies in delivering durable,","page_number":253,"box":{"x":116,"y":272,"width":751,"height":12}},{"id":"a42669c6-4b3d-4427-885f-3b29265223b8","block_type":"box","text":"risk-adjusted financial returns over time. We are committed to building strong relationships through","page_number":253,"box":{"x":117,"y":287,"width":736,"height":12}},{"id":"d7eeb8e1-a8fd-4433-bb0f-412d8250c46e","block_type":"box","text":"constructive, ongoing dialogue with the boards and executive management of the companies in which","page_number":253,"box":{"x":116,"y":303,"width":760,"height":12}},{"id":"1a8a08d8-b9cf-4fc6-af09-89b792d1c245","block_type":"box","text":"our clients are invested.","page_number":253,"box":{"x":116,"y":318,"width":182,"height":10}},{"id":"11f3b2cd-7495-4f3e-9347-a92c97467ff4","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":253,"box":{"x":259,"y":356,"width":486,"height":9}},{"id":"956cc94d-4d3b-4015-86bb-ef745a659690","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management","page_number":253,"box":{"x":117,"y":386,"width":764,"height":12}},{"id":"b032785e-6aeb-4e7b-88a8-b240203f355d","block_type":"box","text":"Group and manages BlackRock’s stewardship engagement and voting on behalf of clients invested in","page_number":253,"box":{"x":117,"y":402,"width":758,"height":12}},{"id":"c9ad32b4-b29f-4847-9d63-275b2a5c3436","block_type":"box","text":"active strategies globally. BAIS is also responsible for engagement with issuers in index fixed income","page_number":253,"box":{"x":116,"y":417,"width":755,"height":12}},{"id":"5d0629f8-76ee-4073-83df-4f82eff77e03","block_type":"box","text":"strategies, where appropriate. Our activities are informed by these Global Engagement and Voting","page_number":253,"box":{"x":116,"y":433,"width":735,"height":12}},{"id":"fc4a0dc5-58d8-4c28-98f9-211132a339e1","block_type":"box","text":"Guidelines (the “Guidelines”) and insights from active investment analysts and portfolio managers, with","page_number":253,"box":{"x":117,"y":448,"width":768,"height":12}},{"id":"dcc7a772-f455-4d0b-8fd4-2684daef1257","block_type":"box","text":"whom we work closely in engaging companies and voting at shareholder meetings.","page_number":253,"box":{"x":116,"y":464,"width":622,"height":12}},{"id":"65db8a64-ac3b-4faf-a24b-868d0e37bd28","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within","page_number":253,"box":{"x":117,"y":494,"width":680,"height":12}},{"id":"98a5e949-0913-44d3-a58b-06664187f4cd","block_type":"box","text":"fundamental active investing.","page_number":253,"box":{"x":116,"y":509,"width":215,"height":13}},{"id":"c81573e0-853b-4f2b-8813-d18570597209","block_type":"box","text":"3","page_number":253,"box":{"x":333,"y":510,"width":5,"height":6}},{"id":"57e9e96a-e69a-4f41-b80b-39817ea4f9e4","block_type":"box","text":"Through direct dialogue with company leadership, we seek to","page_number":253,"box":{"x":339,"y":510,"width":466,"height":12}},{"id":"4da7b230-9532-48eb-a62f-649d7e923be5","block_type":"box","text":"understand their businesses and how they manage risks and opportunities to deliver durable, risk","page_number":253,"box":{"x":117,"y":525,"width":727,"height":12}},{"id":"d4180baf-81be-412c-aa2b-7b2fbd5ea390","block_type":"box","text":"adjusted financial returns. Portfolio managers and stewardship specialists may engage jointly or","page_number":253,"box":{"x":116,"y":540,"width":716,"height":13}},{"id":"0f5b50ae-ef64-4d53-8090-597b34d99028","block_type":"box","text":"independently on material corporate governance matters. Our discussions focus on topics relevant to a","page_number":253,"box":{"x":117,"y":556,"width":769,"height":12}},{"id":"e1d482ad-b502-4e80-9552-96d77335e4c5","block_type":"box","text":"company’s success over time, including governance and leadership, corporate strategy, capital","page_number":253,"box":{"x":116,"y":572,"width":711,"height":12}},{"id":"790c2b9a-702b-49b8-b460-e8bfa826258d","block_type":"box","text":"structure and financial performance, operations and material sustainability-related risks, as well as","page_number":253,"box":{"x":116,"y":587,"width":734,"height":12}},{"id":"1f28ddd2-7282-4e34-b12b-311d68bada1f","block_type":"box","text":"macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are","page_number":253,"box":{"x":117,"y":603,"width":717,"height":12}},{"id":"c9efd624-cc0f-47b4-bdfb-a10c88640a9f","block_type":"box","text":"generally supportive of management teams that have a track record of financial value creation. We aim","page_number":253,"box":{"x":116,"y":618,"width":770,"height":12}},{"id":"bcdcf2ed-78b5-4f59-aadf-97f2c9b0be72","block_type":"box","text":"to build and maintain strong relationships with company leadership based on open dialogue and","page_number":253,"box":{"x":116,"y":634,"width":717,"height":12}},{"id":"7952d3f6-f1f5-4159-811b-e7d7ebed3fcc","block_type":"box","text":"mutual respect.","page_number":253,"box":{"x":117,"y":649,"width":118,"height":12}},{"id":"12173aad-f489-4188-9fb0-02a1fd1072bb","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the","page_number":253,"box":{"x":117,"y":679,"width":744,"height":12}},{"id":"fd2afaaf-79e1-4c88-bd92-0eb7a4857166","block_type":"box","text":"latitude each portfolio manager has to make independent voting decisions on their holdings. For","page_number":253,"box":{"x":117,"y":695,"width":711,"height":12}},{"id":"b98debee-46fe-44f5-b50c-6eb9078d819d","block_type":"box","text":"example, BAIS will generally vote the holdings in Systematic Active Equity portfolios in accordance","page_number":253,"box":{"x":116,"y":710,"width":732,"height":12}},{"id":"432f2e08-47c7-477e-8df1-0804c28a9082","block_type":"box","text":"with these guidelines. We provide voting recommendations to fundamental equity portfolio managers,","page_number":253,"box":{"x":116,"y":726,"width":751,"height":12}},{"id":"8a539013-ca10-4f58-8162-7a2c275ae398","block_type":"box","text":"who may determine to vote differently based on each portfolio’s investment objectives and strategy.","page_number":253,"box":{"x":116,"y":741,"width":737,"height":12}},{"id":"40c5a3a8-3bc0-49ef-aba2-fe238434c4ad","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":253,"box":{"x":116,"y":772,"width":749,"height":12}},{"id":"6b2c4f7a-415e-4a01-ab43-177e6e0c8f45","block_type":"box","text":"management teams and board directors","page_number":253,"box":{"x":117,"y":787,"width":297,"height":12}},{"id":"50338638-36bb-4026-b7d1-6bf5cd9026b0","block_type":"box","text":"4","page_number":253,"box":{"x":414,"y":787,"width":6,"height":6}},{"id":"a81ac34f-7719-4954-9f06-683c7c87266e","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We","page_number":253,"box":{"x":424,"y":787,"width":456,"height":12}},{"id":"446ede22-37a2-4d49-8bfe-01b49254ea1d","block_type":"box","text":"3","page_number":253,"box":{"x":143,"y":812,"width":4,"height":5}},{"id":"f1e12118-c042-4f57-a734-0d82c5098002","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":253,"box":{"x":170,"y":812,"width":660,"height":10}},{"id":"a514cfd8-737f-40b1-b5c9-5506f6fc1f95","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":253,"box":{"x":170,"y":825,"width":695,"height":10}},{"id":"62684522-da8d-4c34-a94c-e4e5b0f46d50","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the effect,","page_number":253,"box":{"x":170,"y":838,"width":707,"height":10}},{"id":"fb764cd1-2ccc-4af0-bd37-a74bbc17858c","block_type":"box","text":"of changing or influencing control of the company.","page_number":253,"box":{"x":170,"y":851,"width":295,"height":10}},{"id":"4eb8c28c-649b-4e8d-9085-a16c25a9d16a","block_type":"box","text":"4","page_number":253,"box":{"x":143,"y":867,"width":4,"height":4}},{"id":"f87a00cf-cb26-4d31-873c-655341ff4381","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory boards","page_number":253,"box":{"x":171,"y":866,"width":710,"height":10}},{"id":"9223aec3-a7a4-4fe1-b446-03a3449f50ab","block_type":"box","text":"and their members, where relevant.","page_number":253,"box":{"x":170,"y":879,"width":210,"height":9}},{"id":"c554fd74-1731-4274-b069-32c727ee51f4","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":253,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"da81eb5e-7b54-4fef-9ccd-b0152b850b8d","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":253,"box":{"x":539,"y":909,"width":324,"height":12}},{"id":"9f02f8f6-af54-4b7a-b9de-1b7211d03820","block_type":"box","text":"4","page_number":253,"box":{"x":874,"y":909,"width":9,"height":9}},{"id":"0b95fe62-725f-4737-b377-e4a1e5a18c32","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":253,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"06f4e68f-553a-4ea1-8577-71b900b49133","block_type":"box","text":"recognize that accepted corporate governance norms can differ across markets, and believe these","page_number":254,"box":{"x":117,"y":87,"width":736,"height":12}},{"id":"08f14e8c-442f-40fc-92bd-a80af4ea6265","block_type":"box","text":"guidelines represent globally applicable elements of governance that support a company’s ability to","page_number":254,"box":{"x":116,"y":102,"width":741,"height":13}},{"id":"27124fac-70ee-4ec8-be5a-0adf88c77a5c","block_type":"box","text":"manage material risks and opportunities and deliver financial returns to investors. Generally, we","page_number":254,"box":{"x":117,"y":118,"width":715,"height":12}},{"id":"5cbdba06-94c0-4a51-b308-976aed8d008c","block_type":"box","text":"believe companies should observe accepted corporate governance norms within their local markets or,","page_number":254,"box":{"x":117,"y":134,"width":768,"height":12}},{"id":"dd2e3144-eae2-4af4-b11f-3ad6d7656d99","block_type":"box","text":"particularly in markets without well-established norms, aspire to widely recognized international best","page_number":254,"box":{"x":117,"y":149,"width":746,"height":12}},{"id":"04b1bc8a-a4e2-4617-9d6d-fc13f5145189","block_type":"box","text":"practices. As one of many minority shareholders, BlackRock cannot – and does not try to – direct a","page_number":254,"box":{"x":117,"y":165,"width":739,"height":12}},{"id":"5ca15ddd-1fc8-4a22-8c85-ee02d290748b","block_type":"box","text":"company’s strategy or its implementation. We look to companies to provide disclosures that explain","page_number":254,"box":{"x":116,"y":180,"width":743,"height":12}},{"id":"efb928df-fc65-4d16-8de6-30f8a97744be","block_type":"box","text":"how their approach to corporate governance best aligns with the financial interests of their investors.","page_number":254,"box":{"x":117,"y":196,"width":749,"height":12}},{"id":"c472a889-e484-414c-a6f1-cd4fd6a13778","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":254,"box":{"x":246,"y":234,"width":513,"height":11}},{"id":"467a8b86-c906-4904-a161-284dc9a44603","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of","page_number":254,"box":{"x":116,"y":265,"width":713,"height":12}},{"id":"177ec41b-cf3e-43b2-a581-457bbd3379d1","block_type":"box","text":"corporate governance. The voting rights attached to clients’ holdings are an important mechanism for","page_number":254,"box":{"x":116,"y":281,"width":756,"height":12}},{"id":"aa4c51c0-ad36-4ddd-9159-fcf2920d6f80","block_type":"box","text":"investors to express support for, or concern about, a company’s performance. As a fiduciary,","page_number":254,"box":{"x":117,"y":296,"width":692,"height":12}},{"id":"c3bc3b5f-ff63-4409-acad-9eb5ee97d8d3","block_type":"box","text":"BlackRock is legally required to make proxy voting determinations, on behalf of clients who have","page_number":254,"box":{"x":117,"y":312,"width":720,"height":12}},{"id":"8511e958-d21b-4c0d-94ee-5fb5a233ec41","block_type":"box","text":"delegated voting authority to us, in a manner consistent with BlackRock’s contractual arrangements","page_number":254,"box":{"x":116,"y":327,"width":743,"height":12}},{"id":"4db31ad1-9e90-44a7-aeba-e4a4e69b0b31","block_type":"box","text":"with clients and funds.","page_number":254,"box":{"x":116,"y":343,"width":170,"height":9}},{"id":"7faf3575-9ac9-439e-aa31-f5b06d154408","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As","page_number":254,"box":{"x":117,"y":374,"width":740,"height":12}},{"id":"bd4d40f1-b52e-4711-9c5d-89b6ed14f4de","block_type":"box","text":"indicated below, we may vote against management recommendations when we have concerns about","page_number":254,"box":{"x":117,"y":389,"width":755,"height":12}},{"id":"3e0d9159-d5b2-4843-a7d9-df6da169f06f","block_type":"box","text":"how companies are serving the financial interests of our clients as their shareholders. BAIS takes a","page_number":254,"box":{"x":117,"y":405,"width":740,"height":12}},{"id":"bd2f8055-8e30-48ba-8de3-bf06cd2aeb12","block_type":"box","text":"globally consistent approach to voting but considers the different corporate governance regulations and","page_number":254,"box":{"x":116,"y":420,"width":772,"height":12}},{"id":"45384a46-f24b-4343-a44a-1af5aefb442d","block_type":"box","text":"norms across markets. Votes are determined on a case-by-case basis, in the context of a company’s","page_number":254,"box":{"x":117,"y":436,"width":753,"height":12}},{"id":"de8ed937-56dd-4d28-9bae-6ad37849744c","block_type":"box","text":"situation and the investment mandate we have from clients. Please see page 19 for more information","page_number":254,"box":{"x":116,"y":451,"width":756,"height":12}},{"id":"8e78dc92-b407-4135-b414-c9f5fc20a499","block_type":"box","text":"about how we fulfill and oversee our investment stewardship responsibilities for BlackRock’s non-index","page_number":254,"box":{"x":116,"y":467,"width":768,"height":12}},{"id":"96911293-883a-46cf-8dd4-9e0710e5461e","block_type":"box","text":"equity strategies.","page_number":254,"box":{"x":116,"y":482,"width":125,"height":12}},{"id":"a8ef134d-52d7-4504-9c04-cbf42c23cb16","block_type":"box","text":"5","page_number":254,"box":{"x":243,"y":483,"width":6,"height":6}},{"id":"76185e4d-a0f2-47f2-a04f-32bef5e9a947","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":254,"box":{"x":257,"y":521,"width":490,"height":10}},{"id":"7d0858a4-dda3-41c0-b143-dc5cde561061","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer","page_number":254,"box":{"x":116,"y":552,"width":695,"height":12}},{"id":"41e2c8a2-f579-4ddf-8146-2cd28f2e21ba","block_type":"box","text":"engagement is a component of fixed income investment strategies at BlackRock, particularly for those","page_number":254,"box":{"x":116,"y":568,"width":762,"height":12}},{"id":"2e5f56d8-1e85-4bf0-bb1c-6226760b976a","block_type":"box","text":"with sustainability objectives in addition to financial objectives. Most corporate governance-related","page_number":254,"box":{"x":116,"y":583,"width":732,"height":12}},{"id":"a3c04a27-8114-4f5d-8313-c4ea39c2eb88","block_type":"box","text":"fixed income engagements are undertaken in conjunction with the active investment stewardship team,","page_number":254,"box":{"x":116,"y":599,"width":770,"height":12}},{"id":"a9df7c80-af7a-4ece-b6f5-36cdc527abd5","block_type":"box","text":"and often active equity investors. In addition to the topics listed below, engagement with fixed income","page_number":254,"box":{"x":116,"y":614,"width":757,"height":12}},{"id":"ad885870-8c9e-4048-a03b-305d567ca47d","block_type":"box","text":"investment teams may help inform an issuer’s approach to structuring specialist issuances and the","page_number":254,"box":{"x":117,"y":630,"width":736,"height":12}},{"id":"961ffa8c-a5f7-438b-98f2-d3b7ad3bf06b","block_type":"box","text":"standard terms and information in bond documentation.","page_number":254,"box":{"x":116,"y":645,"width":417,"height":10}},{"id":"f44794cc-1141-4075-af4e-c40cebf1414b","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":254,"box":{"x":398,"y":684,"width":203,"height":9}},{"id":"2cc75966-e567-4bde-bb93-3ef2109ee353","block_type":"box","text":"Roles and responsibilities","page_number":254,"box":{"x":117,"y":715,"width":207,"height":12}},{"id":"0710be5b-4400-413d-8b42-144acac84147","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board","page_number":254,"box":{"x":116,"y":746,"width":764,"height":12}},{"id":"91b3dcfa-13bc-4fd2-a3c0-b707ea9b654d","block_type":"box","text":"of directors that is able to advise and supervise management in an independent and objective","page_number":254,"box":{"x":116,"y":761,"width":695,"height":13}},{"id":"e5deb575-5bcd-4f50-85db-2d403c651837","block_type":"box","text":"manner.","page_number":254,"box":{"x":117,"y":779,"width":59,"height":7}},{"id":"6427c9a6-e824-44e0-aab6-0b082fbec891","block_type":"box","text":"6","page_number":254,"box":{"x":178,"y":777,"width":5,"height":6}},{"id":"12fe9f96-b064-40de-abbb-1efef6e563dd","block_type":"box","text":"5","page_number":254,"box":{"x":143,"y":826,"width":4,"height":4}},{"id":"c8705fc0-309a-436d-8737-b41c9e80a543","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":254,"box":{"x":171,"y":825,"width":685,"height":10}},{"id":"e630822e-3e20-45e4-8e81-bb20a1df5420","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":254,"box":{"x":170,"y":838,"width":678,"height":10}},{"id":"8a761bae-0bf9-4036-b67a-a213297b8884","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":254,"box":{"x":170,"y":851,"width":458,"height":10}},{"id":"f0c84d9f-fc12-4247-b677-36378ea6a4dd","block_type":"box","text":"6","page_number":254,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"fedebbed-7ab6-4f95-a7cd-b931e8fb04ea","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance principles","page_number":254,"box":{"x":170,"y":867,"width":706,"height":9}},{"id":"5c6d1d48-cd77-47c7-866d-34fbabef6255","block_type":"box","text":"of the US Business Roundtable as examples.","page_number":254,"box":{"x":170,"y":880,"width":268,"height":9}},{"id":"ecca527c-b7e2-4762-bb64-a54c996b07a0","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":254,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"7648ea2e-5c2e-466e-8c10-0b24c847e0ac","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":254,"box":{"x":539,"y":909,"width":324,"height":12}},{"id":"f9da4f6e-0894-4127-81d7-952275849d78","block_type":"box","text":"5","page_number":254,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"5b5bc760-c68b-4226-ab0e-f7012819e57b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":254,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f4d1d855-6bcb-4af0-aeb6-c77d94d174c7","block_type":"box","text":"We look to the board of directors (hereafter the “board”) to have an oversight role in the establishment","page_number":255,"box":{"x":116,"y":87,"width":762,"height":12}},{"id":"738a30a0-01f3-4ecb-8d0b-c095a259ff61","block_type":"box","text":"and realization of a company’s strategy, purpose and culture. These constructs are interdependent","page_number":255,"box":{"x":116,"y":102,"width":738,"height":13}},{"id":"0d8fbcda-ec1a-4219-b08e-e2d3d6c4e069","block_type":"box","text":"and, when aligned, can better position a company to be resilient in the face of a changing business","page_number":255,"box":{"x":116,"y":118,"width":739,"height":12}},{"id":"f85e2869-fb84-4f58-8843-4a8e9b882527","block_type":"box","text":"environment, help reduce the risks of corporate or employee misconduct, and attract and retain the","page_number":255,"box":{"x":116,"y":134,"width":740,"height":12}},{"id":"19fb05c1-513e-463c-8d50-236b552442f9","block_type":"box","text":"caliber of workers necessary to deliver financial performance over time.","page_number":255,"box":{"x":116,"y":149,"width":535,"height":12}},{"id":"e0278423-e9a7-42c5-99f3-6b9592ab6c4e","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies","page_number":255,"box":{"x":117,"y":178,"width":754,"height":12}},{"id":"9d3ea376-21ed-412f-b8c0-606bbcee87cc","block_type":"box","text":"and procedures are in place to help management meet its strategic objectives within an agreed risk","page_number":255,"box":{"x":116,"y":194,"width":742,"height":12}},{"id":"b9ddfef0-94ab-4630-b0ee-4b379f982f2d","block_type":"box","text":"tolerance.","page_number":255,"box":{"x":116,"y":210,"width":78,"height":9}},{"id":"f52e5347-3578-4a63-9106-246287e8cf30","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the","page_number":255,"box":{"x":116,"y":239,"width":739,"height":12}},{"id":"1e5fa882-8612-484a-bebb-d85904541f15","block_type":"box","text":"chief executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the","page_number":255,"box":{"x":116,"y":254,"width":704,"height":12}},{"id":"68df4639-b9af-4111-b2a8-0094ed5a9ad7","block_type":"box","text":"performance of the CEO and other key executives, determining executive compensation, ensuring a","page_number":255,"box":{"x":117,"y":270,"width":747,"height":12}},{"id":"4cc796a0-dc53-4465-b5e3-0b21acab789c","block_type":"box","text":"rigorous audit, overseeing strategy execution and risk management and engaging with shareholders,","page_number":255,"box":{"x":117,"y":285,"width":753,"height":12}},{"id":"04cdab3e-8c6f-4c88-96df-27ed95318356","block_type":"box","text":"and other stakeholders, as necessary.","page_number":255,"box":{"x":116,"y":301,"width":289,"height":12}},{"id":"61f6bc2d-808f-44b2-8bd1-aa5771b70ec7","block_type":"box","text":"Composition and effectiveness","page_number":255,"box":{"x":116,"y":330,"width":253,"height":12}},{"id":"02d9d22d-a3c6-4daf-8318-325a5e8c30aa","block_type":"box","text":"Appointment process","page_number":255,"box":{"x":116,"y":359,"width":177,"height":12}},{"id":"fdcf3579-c2bb-4dde-8150-17a2113f7f6e","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to","page_number":255,"box":{"x":116,"y":389,"width":708,"height":12}},{"id":"2f1a38ba-8ce1-4b1c-a02f-940a3a02ca00","block_type":"box","text":"ensuring the board is composed of directors with the appropriate mix of skills and experience.","page_number":255,"box":{"x":116,"y":404,"width":700,"height":12}},{"id":"b85a3b89-6b89-476b-93cd-5301f311f02b","block_type":"box","text":"Generally, the board or a sub-committee determines the general criteria given the company’s","page_number":255,"box":{"x":117,"y":420,"width":695,"height":12}},{"id":"d6e61f75-464a-4a98-ba71-9912d52f0076","block_type":"box","text":"circumstances (e.g., sector, maturity, geographic footprint) and any additional criteria for a specific role","page_number":255,"box":{"x":116,"y":435,"width":767,"height":12}},{"id":"c68f19a2-980f-404a-a9f8-2ada12301a65","block_type":"box","text":"being filled (e.g., financial expertise, industry track record). To inform the process, we encourage","page_number":255,"box":{"x":117,"y":451,"width":721,"height":12}},{"id":"8b913510-4f00-4b65-8f2f-7bb643ac7a24","block_type":"box","text":"companies to review the skills and experience of incumbent directors to identify any gaps and whether","page_number":255,"box":{"x":116,"y":466,"width":764,"height":12}},{"id":"b63e74c5-4389-4c79-96f4-61c42290e2ee","block_type":"box","text":"the skills and experience of a director candidate would be additive. We welcome disclosures that","page_number":255,"box":{"x":116,"y":482,"width":722,"height":12}},{"id":"be97e028-b2bc-4d12-940c-df3e2f3d8b8f","block_type":"box","text":"explain how the board considered different skills and experience to ensure that the directors","page_number":255,"box":{"x":116,"y":497,"width":687,"height":12}},{"id":"50f21c26-65b6-4270-b7f7-e63a0b4282fa","block_type":"box","text":"collectively can be effective in fulfilling their responsibilities. We assess a company’s board","page_number":255,"box":{"x":116,"y":513,"width":678,"height":12}},{"id":"8b11479c-1372-44fa-9faf-90be2783c3e7","block_type":"box","text":"composition against that of its peer group and local market requirements.","page_number":255,"box":{"x":116,"y":528,"width":548,"height":12}},{"id":"43b2cf83-aa6f-4230-850f-737b49ff9332","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any","page_number":255,"box":{"x":116,"y":558,"width":714,"height":12}},{"id":"3f5d82b4-3150-4e53-b2b0-68e908624f26","block_type":"box","text":"particular board composition in our engagements or voting but seek to understand how well placed a","page_number":255,"box":{"x":117,"y":573,"width":751,"height":12}},{"id":"c5aec9db-2c9c-4adb-8340-9516bf8a772b","block_type":"box","text":"board is to act in investors’ interests. We may vote against the election of the most senior independent","page_number":255,"box":{"x":117,"y":589,"width":764,"height":12}},{"id":"f9a039a5-1d17-4f0e-bb77-f3173d7906f3","block_type":"box","text":"director, or the chair of the relevant committee, where a company has not demonstrated it has an","page_number":255,"box":{"x":116,"y":604,"width":726,"height":12}},{"id":"06c4242e-e5e3-4c14-ac05-2a5cce40c72e","block_type":"box","text":"appointment process that results in a high functioning board with the appropriate complement of skills","page_number":255,"box":{"x":116,"y":620,"width":759,"height":12}},{"id":"772a929c-57a5-443c-b27d-5779aa6a38dc","block_type":"box","text":"and experience amongst the directors to support strong financial performance over time. We may vote","page_number":255,"box":{"x":116,"y":635,"width":764,"height":12}},{"id":"ad803b11-031d-492a-9e61-66c7e141aa9a","block_type":"box","text":"against newly nominated directors who do not seem to have the appropriate skills or experience to","page_number":255,"box":{"x":116,"y":651,"width":736,"height":12}},{"id":"66a45c47-cf68-4d49-912f-d6efd45a2082","block_type":"box","text":"contribute to the board’s effectiveness.","page_number":255,"box":{"x":116,"y":666,"width":286,"height":10}},{"id":"6f1ed88b-b958-4a24-bb2e-fa11cb67ed38","block_type":"box","text":"Independence","page_number":255,"box":{"x":116,"y":696,"width":113,"height":11}},{"id":"725c5278-31b1-4eb8-91ed-7e48e0e97958","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (e.g.,","page_number":255,"box":{"x":117,"y":725,"width":700,"height":12}},{"id":"d2ae2d0c-608c-47c1-9ac4-62fc168fc663","block_type":"box","text":"government or employees) is of paramount importance to the protection of the interests of minority","page_number":255,"box":{"x":116,"y":740,"width":732,"height":12}},{"id":"4d6bee3e-d546-418a-87de-503ee9700a0f","block_type":"box","text":"shareholders such as BlackRock’s clients. We consider it good practice for at least half the directors to","page_number":255,"box":{"x":116,"y":756,"width":761,"height":12}},{"id":"9e768530-3000-4766-91bd-f698ee1f0dd6","block_type":"box","text":"be independent and free from conflicts of interest or undue influence.","page_number":255,"box":{"x":117,"y":771,"width":510,"height":12}},{"id":"97e46efb-5172-4789-9d70-b66c02dc4c50","block_type":"box","text":"7","page_number":255,"box":{"x":629,"y":771,"width":5,"height":6}},{"id":"fc4a5282-4854-42d1-b9c4-2822f51d5100","block_type":"box","text":"This also helps to ensure that","page_number":255,"box":{"x":640,"y":771,"width":219,"height":12}},{"id":"8b919440-050b-4f16-8bc5-0b40d5181436","block_type":"box","text":"board committees are composed of a sufficient number of independent directors. Companies domiciled","page_number":255,"box":{"x":117,"y":787,"width":764,"height":12}},{"id":"b9dea89a-fb5e-4087-b928-10c77a4d691e","block_type":"box","text":"in markets with a higher threshold for board independence should meet those local requirements.","page_number":255,"box":{"x":117,"y":802,"width":720,"height":12}},{"id":"19f326e0-5fd0-4e04-884a-4b4cc0c2faf6","block_type":"box","text":"7","page_number":255,"box":{"x":143,"y":828,"width":4,"height":4}},{"id":"df4a38d4-49b7-428a-8e62-6119e1b7a691","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":255,"box":{"x":170,"y":827,"width":659,"height":10}},{"id":"da5e120e-b7c4-421e-bf4e-5e9de6d765c7","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":255,"box":{"x":170,"y":840,"width":659,"height":10}},{"id":"6a8360b6-3b53-4d53-8c55-f3c4b1c52ac7","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which could, or","page_number":255,"box":{"x":170,"y":853,"width":702,"height":10}},{"id":"56f17a8f-78a4-4fef-a56f-e1e8091eadde","block_type":"box","text":"could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests of the company","page_number":255,"box":{"x":170,"y":866,"width":703,"height":10}},{"id":"d0622522-6050-4c9b-8002-0d4a3f6985cc","block_type":"box","text":"and shareholders.","page_number":255,"box":{"x":170,"y":879,"width":106,"height":8}},{"id":"f4a782f8-1ab9-42ba-bc31-ec94dd09bab8","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":255,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"5ec02dc3-b943-4033-a2ae-4a19f5ad1116","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":255,"box":{"x":539,"y":909,"width":324,"height":12}},{"id":"23ce68cd-aa71-4555-9a58-8b77eaf1838e","block_type":"box","text":"6","page_number":255,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"b6299b39-9767-4398-aba3-4252c33d16e4","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":255,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8a04d11f-bd14-4cb0-ab6d-1238c995fb14","block_type":"box","text":"We may vote against the election of non-independent directors if the board does not have a sufficient","page_number":256,"box":{"x":116,"y":87,"width":756,"height":12}},{"id":"c276e405-c2ef-4de1-aaea-e027e398fc28","block_type":"box","text":"balance of independence. We may also vote against the election of the chair of the committee","page_number":256,"box":{"x":117,"y":102,"width":701,"height":13}},{"id":"07bdb78a-ae45-4e7e-9c89-ce5013ff7f2a","block_type":"box","text":"responsible for board composition if this is a perennial issue.","page_number":256,"box":{"x":117,"y":118,"width":453,"height":12}},{"id":"96ccaac4-0548-4b72-98e5-cfa1a4fe7132","block_type":"box","text":"Independent board leadership","page_number":256,"box":{"x":116,"y":149,"width":245,"height":12}},{"id":"d3f28fbf-e14d-44d7-9f71-582638b46606","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to","page_number":256,"box":{"x":117,"y":180,"width":718,"height":12}},{"id":"8929a09d-cd7b-464b-83ad-af93aa0cb6e3","block_type":"box","text":"independent board leadership. One is a non-executive, independent chair of the board who is","page_number":256,"box":{"x":117,"y":196,"width":697,"height":11}},{"id":"6a3f3725-0f75-42ed-9a72-46b86901d48f","block_type":"box","text":"responsible for leading the board in the effective exercise of its duties. The other is a lead or senior","page_number":256,"box":{"x":117,"y":211,"width":738,"height":12}},{"id":"b0be8f57-18e3-47df-8858-ef2c6be13a8b","block_type":"box","text":"independent director, who is responsible for coordinating with the other non-executive directors and","page_number":256,"box":{"x":117,"y":227,"width":742,"height":12}},{"id":"c1935880-9f43-4c1d-9e82-de16eeb576eb","block_type":"box","text":"working closely with the executive chair on the board agenda and other board procedures. In this case,","page_number":256,"box":{"x":116,"y":242,"width":770,"height":12}},{"id":"f2135bb9-7da9-4661-814c-3a5e91e40fab","block_type":"box","text":"the executive chair and the lead independent director work together to ensure the board is effectively","page_number":256,"box":{"x":116,"y":258,"width":754,"height":12}},{"id":"a65aebfc-e9c6-4bba-b5f0-a019db9d549c","block_type":"box","text":"fulfilling its responsibilities. In our view, the independent leader of the board, and/or the chair of a","page_number":256,"box":{"x":116,"y":273,"width":723,"height":12}},{"id":"a99afc16-b01a-459f-b49d-3bf559de4223","block_type":"box","text":"relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":256,"box":{"x":117,"y":289,"width":727,"height":12}},{"id":"75559eff-6b26-40a7-bcd8-97ec2ad31ad9","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board","page_number":256,"box":{"x":116,"y":304,"width":691,"height":12}},{"id":"98569f9d-361f-4aa7-90f4-1fda4da5649f","block_type":"box","text":"leadership model and how it serves the interests of shareholders.","page_number":256,"box":{"x":117,"y":320,"width":489,"height":12}},{"id":"aea98856-c596-4361-8da3-2894e746af9b","block_type":"box","text":"We may vote against the election of the chair of the committee responsible for board composition if","page_number":256,"box":{"x":116,"y":351,"width":740,"height":12}},{"id":"60bc017a-36fe-4aa2-aac2-f22b859874d2","block_type":"box","text":"there is not an identified independent leader of the board with clear responsibilities for board","page_number":256,"box":{"x":116,"y":366,"width":689,"height":12}},{"id":"38688fcc-be1f-4e9e-8a84-5356618b1648","block_type":"box","text":"performance. We may vote against the most senior independent director if the board has a policy of","page_number":256,"box":{"x":117,"y":382,"width":744,"height":12}},{"id":"b89ea50e-522a-4be7-8f6e-a8f612a1ed0c","block_type":"box","text":"not engaging with shareholders.","page_number":256,"box":{"x":117,"y":397,"width":242,"height":12}},{"id":"549e78a2-ee42-43e4-b90b-a30726461186","block_type":"box","text":"Tenure and succession","page_number":256,"box":{"x":118,"y":428,"width":189,"height":10}},{"id":"d2b5b9e6-877b-4c0f-8655-3f34e0c80eb8","block_type":"box","text":"In our view, it is good practice for boards to establish the length of time a director would normally be","page_number":256,"box":{"x":117,"y":459,"width":745,"height":12}},{"id":"41b99ee8-323e-40e0-b072-68168215bb83","block_type":"box","text":"expected to serve, in line with market norms where those exist. We find it helpful when companies","page_number":256,"box":{"x":116,"y":475,"width":733,"height":12}},{"id":"8d37c73d-b78d-4174-937b-aa64c88b0765","block_type":"box","text":"disclose their approach to director tenure particularly around the contributions of directors who have","page_number":256,"box":{"x":116,"y":490,"width":745,"height":12}},{"id":"8339b375-2596-48ac-85ce-3c59989ac4d3","block_type":"box","text":"served for longer periods than typically provided for under local practice. In our experience, long","page_number":256,"box":{"x":116,"y":506,"width":718,"height":12}},{"id":"165d9a53-ed4e-4172-88c4-fd7abb941839","block_type":"box","text":"serving directors could become less independent given their long-term relationship with management","page_number":256,"box":{"x":116,"y":521,"width":755,"height":12}},{"id":"0288286d-289b-41db-a9ea-b78d55657c96","block_type":"box","text":"and involvement in past board decisions.","page_number":256,"box":{"x":116,"y":537,"width":308,"height":12}},{"id":"8d9fd4c4-485a-4cf7-8264-35b9a11f8e51","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances","page_number":256,"box":{"x":116,"y":568,"width":756,"height":12}},{"id":"7f99d4c2-735b-4365-bac3-a6bbaa26d700","block_type":"box","text":"renewal through the regular introduction of directors with fresh perspectives and expertise with","page_number":256,"box":{"x":117,"y":583,"width":705,"height":12}},{"id":"3c5f8186-aa24-453c-a47a-e1693ddc6364","block_type":"box","text":"continuity through the retention of directors with long-term knowledge of the board and company.","page_number":256,"box":{"x":116,"y":599,"width":724,"height":12}},{"id":"567a2480-3f1b-40a7-bd13-d9f95aa40c06","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate","page_number":256,"box":{"x":117,"y":630,"width":680,"height":12}},{"id":"1a1c4030-a720-4108-9327-251768dea119","block_type":"box","text":"governance best practices, we may vote against the election of the chair of the committee responsible","page_number":256,"box":{"x":116,"y":645,"width":763,"height":12}},{"id":"4f0db1bd-1d66-49cc-ba53-ac1257c96e78","block_type":"box","text":"for board composition if a company does not clearly disclose its approach to director tenure and board","page_number":256,"box":{"x":116,"y":661,"width":757,"height":12}},{"id":"fc0d1564-2bc4-463c-b0b4-f0bc842f4f43","block_type":"box","text":"renewal. We may vote against the election of directors who have served for more years than is typical","page_number":256,"box":{"x":117,"y":676,"width":754,"height":12}},{"id":"214fa1b5-aa90-4071-a699-e6fbb0d33cb7","block_type":"box","text":"in markets with specific guidance, where the case for their continued service is not evident.","page_number":256,"box":{"x":117,"y":692,"width":673,"height":12}},{"id":"c04efd7e-b313-46b0-b91c-3cc5d04e91d9","block_type":"box","text":"Capacity","page_number":256,"box":{"x":117,"y":723,"width":70,"height":12}},{"id":"280a8b33-3c12-490a-b5fb-47b0f6f06f40","block_type":"box","text":"To be effective and engaged, directors need to have the time and energy to commit to the role. In our","page_number":256,"box":{"x":116,"y":754,"width":753,"height":12}},{"id":"4d8ef26a-6916-4cdd-a3db-051bf7f32aca","block_type":"box","text":"view, an effective board will assess the ability of its members to maintain an appropriate focus on","page_number":256,"box":{"x":116,"y":769,"width":720,"height":12}},{"id":"6ce515cc-908d-4bf4-a75a-ca1195ec9d33","block_type":"box","text":"board matters and the company taking into consideration competing responsibilities. We recognize that","page_number":256,"box":{"x":117,"y":785,"width":765,"height":12}},{"id":"bfe7d3fa-71a3-43c2-a1e4-04361ff1d1c5","block_type":"box","text":"board leadership roles vary across markets in responsibilities and required time commitment but note","page_number":256,"box":{"x":117,"y":800,"width":750,"height":12}},{"id":"b042fc3d-322f-494e-8183-5b67144a41b3","block_type":"box","text":"that they are generally more intensive than a standard directorship. We will take local norms and","page_number":256,"box":{"x":116,"y":816,"width":715,"height":12}},{"id":"1531895c-f28a-4416-bc42-41f650bf629f","block_type":"box","text":"practices into consideration when making our voting determinations across markets.","page_number":256,"box":{"x":117,"y":831,"width":628,"height":12}},{"id":"02de5f14-e26d-40f3-9731-502cb0f99a8f","block_type":"box","text":"We may vote against the election of directors who do not seem to have sufficient capacity to effectively","page_number":256,"box":{"x":116,"y":862,"width":769,"height":12}},{"id":"0d0a0b05-b2d2-467e-8afb-de9aa5d4f0fc","block_type":"box","text":"fulfil their duties to the board and company.","page_number":256,"box":{"x":116,"y":878,"width":326,"height":12}},{"id":"816d8d67-2342-4f1c-a499-41c855a5239c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":256,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"b8425df5-d96d-47f6-81cc-37b3fae129d2","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":256,"box":{"x":539,"y":909,"width":324,"height":12}},{"id":"77a98280-b0cc-4c47-a107-4e395afca5c5","block_type":"box","text":"7","page_number":256,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"f90b403d-ef5a-47ec-b462-f5be07f34cfc","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":256,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"06be51c7-b905-48ca-b4f7-fa2b0c44e7c7","block_type":"box","text":"Director elections","page_number":257,"box":{"x":116,"y":87,"width":147,"height":10}},{"id":"19a01304-f14b-41dc-924d-a775e6070bb1","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A","page_number":257,"box":{"x":117,"y":116,"width":720,"height":13}},{"id":"0f78715a-94ac-4256-8e19-aafd720d8a27","block_type":"box","text":"classified board structure","page_number":257,"box":{"x":116,"y":132,"width":186,"height":10}},{"id":"25b534ab-b3ea-474b-ae23-6ae9f586143f","block_type":"box","text":"8","page_number":257,"box":{"x":303,"y":132,"width":5,"height":6}},{"id":"c365062f-7d56-42c8-8ca8-337c6fd19d50","block_type":"box","text":"may be justified by a company when it needs consistency and stability","page_number":257,"box":{"x":309,"y":132,"width":530,"height":12}},{"id":"ab0f334d-466f-40c0-bab2-9c3ae166c559","block_type":"box","text":"during a time of transition, or on the basis of its business model (e.g., a non-operating company such","page_number":257,"box":{"x":116,"y":147,"width":754,"height":13}},{"id":"3067a275-f813-45b8-9e36-da1d1d02fb67","block_type":"box","text":"as closed-end funds).","page_number":257,"box":{"x":116,"y":163,"width":165,"height":12}},{"id":"e6181043-eb9b-4526-bdcc-36affcb1814c","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in","page_number":257,"box":{"x":116,"y":192,"width":746,"height":13}},{"id":"9ade2b68-002d-4fcf-b9b5-e7e5c17884f2","block_type":"box","text":"bundled slates. We look to companies to provide sufficient information on each director standing for","page_number":257,"box":{"x":117,"y":208,"width":743,"height":12}},{"id":"b25f6b18-e5fc-4ad7-8711-a87e6e954339","block_type":"box","text":"election so that shareholders can assess their capabilities and suitability. We will generally not support","page_number":257,"box":{"x":116,"y":224,"width":765,"height":12}},{"id":"4e8ad05d-49ca-4b5c-8101-748e02ca0ca7","block_type":"box","text":"the election of directors whose names and biographical details have not been disclosed sufficiently in","page_number":257,"box":{"x":116,"y":239,"width":755,"height":12}},{"id":"c5af9b8f-8b87-4b9a-9ef2-79c16b7170ca","block_type":"box","text":"advance of the shareholder meeting.","page_number":257,"box":{"x":116,"y":254,"width":278,"height":13}},{"id":"d7a637de-72fd-4ec7-9423-8dc4b19e170a","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at","page_number":257,"box":{"x":117,"y":284,"width":746,"height":12}},{"id":"43015275-7eff-4568-9c32-df0d3cf39d2a","block_type":"box","text":"the shareholder meeting. Where a company’s practices differ, we look to the board to provide a","page_number":257,"box":{"x":116,"y":299,"width":712,"height":13}},{"id":"e572dd5f-6cf2-44ac-86c0-058b325a8104","block_type":"box","text":"detailed explanation as to how its approach best serves investors’ interests.","page_number":257,"box":{"x":116,"y":315,"width":567,"height":12}},{"id":"9cab217e-f8e2-4d0a-9075-a21147caa430","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of","page_number":257,"box":{"x":116,"y":344,"width":710,"height":12}},{"id":"570b86cd-a1a6-49c9-b7d6-c5324f1666b5","block_type":"box","text":"directors and/or a simple majority vote standard for director elections. We may vote against all the","page_number":257,"box":{"x":116,"y":360,"width":732,"height":12}},{"id":"30f026b8-b04f-4562-b091-6e3f29391338","block_type":"box","text":"directors standing for election as part of a single slate if we have concerns about the profile or","page_number":257,"box":{"x":116,"y":375,"width":701,"height":12}},{"id":"f3e3fc91-97ea-4c0d-a1a5-464fcfed56c1","block_type":"box","text":"performance of an individual director.","page_number":257,"box":{"x":117,"y":391,"width":280,"height":12}},{"id":"41d1b25d-5c9c-48e8-8fc4-ec78fd27a25a","block_type":"box","text":"Committees","page_number":257,"box":{"x":117,"y":420,"width":100,"height":10}},{"id":"b40b555a-94cd-49f0-88b3-caad330597c1","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and","page_number":257,"box":{"x":117,"y":450,"width":757,"height":12}},{"id":"369eacbd-a86b-45e0-862a-e4e5d7944c06","block_type":"box","text":"risk, governance and human capital, and executive compensation, amongst other matters. We do not","page_number":257,"box":{"x":117,"y":465,"width":756,"height":12}},{"id":"f9c9e5b2-b3fc-49cd-ad9b-270f1eab91b9","block_type":"box","text":"prescribe to companies what committees they should establish, but we seek to understand the board’s","page_number":257,"box":{"x":117,"y":481,"width":765,"height":12}},{"id":"918a335c-7e82-4958-8dbc-eb68b3c11b4f","block_type":"box","text":"rationale for the committee structure it determines is appropriate. We note that, in some markets,","page_number":257,"box":{"x":117,"y":496,"width":723,"height":12}},{"id":"c00e223a-d95f-452b-a12e-9b913d938de4","block_type":"box","text":"regulation requires such committees. The responsibilities of each committee should be clear, and the","page_number":257,"box":{"x":117,"y":512,"width":754,"height":12}},{"id":"264ee8a4-a6d8-40ea-924d-4018c04fab04","block_type":"box","text":"board should ensure that all critical matters are assigned either to the full board or to one of the","page_number":257,"box":{"x":117,"y":527,"width":711,"height":12}},{"id":"5089c626-596b-45de-bb87-0304be38157a","block_type":"box","text":"committees. It is helpful to investor understanding when the board discloses the structure,","page_number":257,"box":{"x":116,"y":543,"width":672,"height":12}},{"id":"36788220-89f7-421e-8c03-89c542012dcd","block_type":"box","text":"membership, proportion of independent directors, and responsibilities of each committee. The","page_number":257,"box":{"x":117,"y":558,"width":700,"height":12}},{"id":"02fd5035-7379-412c-abe1-b42902f40634","block_type":"box","text":"responsibilities we typically see assigned to the three most common committees include:","page_number":257,"box":{"x":117,"y":574,"width":662,"height":12}},{"id":"8d1b2e8e-e64b-4a42-bf34-d6adaea92492","block_type":"box","text":"• Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management","page_number":257,"box":{"x":117,"y":596,"width":752,"height":12}},{"id":"27d7895a-8ea3-4cf4-8da4-dda996358d40","block_type":"box","text":"and compliance with legal and regulatory requirements; may also play an oversight role in relation","page_number":257,"box":{"x":150,"y":612,"width":731,"height":12}},{"id":"742f8447-d380-44cc-9d77-1124113e3a68","block_type":"box","text":"to the internal audit function and whistleblowing mechanisms.","page_number":257,"box":{"x":150,"y":627,"width":460,"height":12}},{"id":"6b1c7f6a-9610-4e93-bed4-b4e00d87bbc8","block_type":"box","text":"• Nominating, governance and human capital – oversight responsibilities for corporate governance","page_number":257,"box":{"x":117,"y":650,"width":756,"height":12}},{"id":"d2344820-409b-48aa-aa12-98aac8bdc112","block_type":"box","text":"principles and practices of the company, including the periodic review of board performance;","page_number":257,"box":{"x":150,"y":665,"width":684,"height":12}},{"id":"adb49fc6-0c16-4779-b00e-25b4c75a3963","block_type":"box","text":"responsibility for succession planning for CEO and key board roles, as well as the director","page_number":257,"box":{"x":150,"y":681,"width":667,"height":12}},{"id":"734deb98-99a3-42b2-aa6f-76b65b97e6e3","block_type":"box","text":"appointment process; may also have oversight responsibilities for human capital management","page_number":257,"box":{"x":150,"y":696,"width":698,"height":12}},{"id":"deeba438-9d17-4404-8c25-436537ddab6e","block_type":"box","text":"strategies, including corporate culture and purpose.","page_number":257,"box":{"x":150,"y":712,"width":381,"height":12}},{"id":"7159ec2b-8ffe-4254-9a73-35a706e56c74","block_type":"box","text":"• Executive compensation – determines the compensation policies and programs for the CEO and","page_number":257,"box":{"x":117,"y":734,"width":749,"height":12}},{"id":"7d31dbf3-a214-4202-bb18-12aa0ec6f537","block_type":"box","text":"other executive officers, approves annual awards and payments under the policies; may also have","page_number":257,"box":{"x":150,"y":750,"width":730,"height":12}},{"id":"388bef69-551a-4810-b421-d76814fb6836","block_type":"box","text":"oversight responsibilities for firm-wide compensation policies.","page_number":257,"box":{"x":150,"y":765,"width":453,"height":12}},{"id":"55f8610e-2569-43a0-a6bc-2a428d8e3457","block_type":"box","text":"We may vote against the election of the chair of the committee or other directors serving as committee","page_number":257,"box":{"x":116,"y":795,"width":760,"height":12}},{"id":"f2062d9a-88c9-4200-a018-e0faacafe68f","block_type":"box","text":"members to convey concerns about how a committee has undertaken its responsibilities. We may vote","page_number":257,"box":{"x":117,"y":810,"width":762,"height":12}},{"id":"3e8d105b-839c-4e4f-93dd-ae012f832864","block_type":"box","text":"against the election of the most senior non-executive director if there is not a clearly disclosed","page_number":257,"box":{"x":116,"y":826,"width":702,"height":12}},{"id":"9d60b8de-ac9a-4e0a-99c4-ae965e7e5e0b","block_type":"box","text":"approach to board committees.","page_number":257,"box":{"x":116,"y":841,"width":236,"height":12}},{"id":"7b89d84d-20c9-4061-8c03-ad37a5623138","block_type":"box","text":"8","page_number":257,"box":{"x":143,"y":867,"width":4,"height":4}},{"id":"b267cb47-a157-4783-a66d-674313dc21bd","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":257,"box":{"x":170,"y":866,"width":673,"height":10}},{"id":"706f9937-7e45-488d-97d1-f66b98d5392b","block_type":"box","text":"directors stands for election in any one year.","page_number":257,"box":{"x":170,"y":879,"width":262,"height":10}},{"id":"2cea5e85-1093-4c05-8f51-bfb8c7105119","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":257,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"13a5aa70-5249-43f7-ae78-6c3520dce957","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":257,"box":{"x":539,"y":909,"width":324,"height":12}},{"id":"6f6e2144-45f0-4689-967c-536f7f602dd8","block_type":"box","text":"8","page_number":257,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"ae74e931-d962-4504-9b5a-fde79e588aa3","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":257,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"fd1af314-8529-40b5-8ac9-73a1123a2931","block_type":"box","text":"Board and director evaluation","page_number":258,"box":{"x":116,"y":87,"width":243,"height":10}},{"id":"1c441880-ea81-4cd4-b6b1-8381f9ec7cd9","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the","page_number":258,"box":{"x":116,"y":119,"width":729,"height":12}},{"id":"a3c63510-f006-4e26-9b0f-e15875844b01","block_type":"box","text":"board, the committees, the chair and individual directors. Periodically, this review could be undertaken","page_number":258,"box":{"x":117,"y":134,"width":762,"height":12}},{"id":"3ea3bab7-ba31-40ae-a563-41b9b5583b03","block_type":"box","text":"by an independent third party able to bring objective perspectives to the board on governance and","page_number":258,"box":{"x":117,"y":150,"width":732,"height":12}},{"id":"336fc4aa-203f-4461-a460-1d4fe5ffc235","block_type":"box","text":"performance. We encourage companies to disclose their approach to and the objectives of","page_number":258,"box":{"x":117,"y":165,"width":677,"height":12}},{"id":"5c3aeb39-850b-4028-b471-3d02e36fa8e9","block_type":"box","text":"evaluations, including any changes made to the board’s approach as a result.","page_number":258,"box":{"x":116,"y":181,"width":581,"height":12}},{"id":"66178431-39ac-4590-a0e5-bc269cd964a2","block_type":"box","text":"Access to independent advice","page_number":258,"box":{"x":116,"y":213,"width":246,"height":11}},{"id":"34cde5c1-0346-4d41-8b95-7092eff61700","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they","page_number":258,"box":{"x":116,"y":244,"width":723,"height":12}},{"id":"78a3d888-b1e9-4139-8b1d-7d5fd3250a68","block_type":"box","text":"should have access to independent advice. In certain circumstances, it may be helpful to boards to","page_number":258,"box":{"x":116,"y":260,"width":738,"height":12}},{"id":"8dfc4dca-5a9e-469b-b783-4900806625dc","block_type":"box","text":"retain independent third parties to advise on critical matters. These might include new industry","page_number":258,"box":{"x":117,"y":275,"width":703,"height":12}},{"id":"3953ec3d-d296-49dd-a9d9-7180f1a26325","block_type":"box","text":"developments such as emergent and disruptive technology, operating events with material","page_number":258,"box":{"x":116,"y":291,"width":676,"height":12}},{"id":"e4f51aef-e556-4262-b287-3306986c7d3e","block_type":"box","text":"consequences for the company’s reputation and/or performance, or significant transactions. Board","page_number":258,"box":{"x":116,"y":306,"width":735,"height":12}},{"id":"ec95311a-4d3e-466b-a0b6-15023172e4cc","block_type":"box","text":"committees may similarly retain third parties to advise them on specialist matters such as audit,","page_number":258,"box":{"x":116,"y":322,"width":713,"height":12}},{"id":"5426d072-82de-4114-9e7b-9f0b0a74c355","block_type":"box","text":"compensation and succession planning.","page_number":258,"box":{"x":116,"y":337,"width":303,"height":12}},{"id":"d354ac88-be9e-43c9-a2d6-197b857ed409","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":258,"box":{"x":382,"y":369,"width":241,"height":9}},{"id":"82e41764-a05c-401b-9c18-2435d2d016a6","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to","page_number":258,"box":{"x":117,"y":401,"width":760,"height":12}},{"id":"36dfe683-29d9-4504-bb39-168ca8e1d9e0","block_type":"box","text":"recruit, retain and reward the caliber of executive management necessary to lead and operate the","page_number":258,"box":{"x":117,"y":416,"width":730,"height":12}},{"id":"bb6fbc09-876c-4ad6-aa02-94acd0600382","block_type":"box","text":"company to deliver superior financial returns over time. We focus on alignment between variable pay","page_number":258,"box":{"x":116,"y":432,"width":753,"height":12}},{"id":"bae25c9c-a76d-4211-a0e9-1dc0708d015a","block_type":"box","text":"and a company’s financial performance.","page_number":258,"box":{"x":116,"y":447,"width":302,"height":12}},{"id":"fcd03d42-1104-45e6-bd4c-c7b712d3a28b","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus","page_number":258,"box":{"x":117,"y":479,"width":751,"height":12}},{"id":"0912a0a8-fedb-4dd9-b7be-a63ac9f5645f","block_type":"box","text":"that rewards performance against short-term metrics, incentives—most often share-based- that reward","page_number":258,"box":{"x":116,"y":494,"width":768,"height":12}},{"id":"27f95ef3-323a-4652-ad61-ac8c6fb07d3b","block_type":"box","text":"performance against long-term metrics, and pensions and benefits. In our observation, base salary,","page_number":258,"box":{"x":117,"y":510,"width":742,"height":12}},{"id":"aa71b963-c794-4c40-9826-eec5cd8c9da2","block_type":"box","text":"pensions and benefits are largely set relative to market norms and benchmarks. The annual bonus and","page_number":258,"box":{"x":117,"y":525,"width":769,"height":12}},{"id":"75626519-420e-4b77-8a65-9f8404151fd0","block_type":"box","text":"share-based incentive, or variable pay plans, tend to be tailored to the company, its sector and long","page_number":258,"box":{"x":116,"y":541,"width":744,"height":12}},{"id":"3b8d2dc9-e04a-41ab-80be-9fd2f04d3716","block_type":"box","text":"term strategy, as well as the individuals the board is seeking to recruit and motivate.","page_number":258,"box":{"x":116,"y":557,"width":629,"height":11}},{"id":"d8b8ca91-ffe4-477a-93bb-00e500ced402","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a","page_number":258,"box":{"x":117,"y":588,"width":693,"height":12}},{"id":"5d7848fd-fd56-40bc-b794-d7b2cf2ac5ca","block_type":"box","text":"company’s approach to executive compensation on a case-by-case basis. We rely on companies","page_number":258,"box":{"x":116,"y":604,"width":726,"height":12}},{"id":"36ea94e9-14cc-4ad5-a861-e88e243f9e58","block_type":"box","text":"providing sufficient quantitative and qualitative information in their disclosures to enable shareholders","page_number":258,"box":{"x":117,"y":619,"width":754,"height":12}},{"id":"210e2063-c1a4-4a18-838a-36aad1efb8d5","block_type":"box","text":"to understand the compensation arrangements and assess the alignment with investors’ interests.","page_number":258,"box":{"x":116,"y":635,"width":732,"height":12}},{"id":"93c27e9c-6a63-4261-80af-48feb79f1f61","block_type":"box","text":"Features we look for in compensation arrangements include:","page_number":258,"box":{"x":117,"y":650,"width":454,"height":12}},{"id":"d920a161-bcc9-4caa-ba15-7cdcca203503","block_type":"box","text":"• Fixed pay components, including base salary, benefits and prerequisites that are appropriate in","page_number":258,"box":{"x":117,"y":682,"width":739,"height":12}},{"id":"d61e9137-95d7-4068-99a4-c3012d14eeed","block_type":"box","text":"the context of the company’s size, sector and market.","page_number":258,"box":{"x":150,"y":697,"width":396,"height":12}},{"id":"1e204731-d7a7-4a92-9442-c6f41d143b48","block_type":"box","text":"• Variable pay subject to performance metrics that are closely linked to the company’s short- and","page_number":258,"box":{"x":117,"y":721,"width":739,"height":12}},{"id":"9b83080b-f6d4-4bdb-b06b-33397c5861a7","block_type":"box","text":"long-term strategic objectives.","page_number":258,"box":{"x":150,"y":737,"width":222,"height":12}},{"id":"630af14d-0a0c-4779-8e58-930d2f666e9f","block_type":"box","text":"• Long-term incentives that motivate sustained performance across a multi-year period.","page_number":258,"box":{"x":117,"y":760,"width":667,"height":12}},{"id":"ea0b504d-e9b1-4fdd-bd7c-35355e592d63","block_type":"box","text":"• A balance between fixed and variable pay, short- and long-term incentives, and specific","page_number":258,"box":{"x":117,"y":784,"width":682,"height":12}},{"id":"c17788b3-46e3-4fd2-a186-18600c6aaf2c","block_type":"box","text":"instruments (cash and equity awards) that promotes pay program durability and seldom","page_number":258,"box":{"x":150,"y":799,"width":649,"height":12}},{"id":"785e3979-13dc-4feb-bdc5-e266d1a5fac4","block_type":"box","text":"necessitates one-off, discretionary payments.","page_number":258,"box":{"x":150,"y":815,"width":336,"height":12}},{"id":"93dfab9d-b411-4ed4-af09-8be77a8527ce","block_type":"box","text":"• Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":258,"box":{"x":117,"y":838,"width":720,"height":12}},{"id":"e812f887-c417-4376-b10a-61dbef3c7617","block_type":"box","text":"• Board discretion, if allowed within the variable pay arrangements, to be used sparingly,","page_number":258,"box":{"x":117,"y":862,"width":683,"height":12}},{"id":"7a1d26cc-7c23-4726-aa59-2bb0641e6b46","block_type":"box","text":"responsibly and transparently.","page_number":258,"box":{"x":150,"y":877,"width":228,"height":12}},{"id":"141eba81-cc49-41ff-ac5f-5c43ada56e6d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":258,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"175b05a9-dfa4-4d00-a0b6-f35db1a76a50","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":258,"box":{"x":539,"y":909,"width":324,"height":12}},{"id":"d207a9cf-e456-4975-81ee-01f1cf31679d","block_type":"box","text":"9","page_number":258,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"2d685df6-72ad-4dc1-81a1-49d3d79ecc3f","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":258,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"017fc06c-889b-4916-ad17-f147569c3161","block_type":"box","text":"• A requirement, that participants in long-term share-based incentive plans build a meaningful","page_number":259,"box":{"x":117,"y":87,"width":720,"height":12}},{"id":"2e90bc51-ee25-48ee-bf03-6b886f7c3ef6","block_type":"box","text":"shareholding in the company within a defined time period, as determined by the board or relevant","page_number":259,"box":{"x":150,"y":102,"width":727,"height":13}},{"id":"35c0f6f3-617e-4143-a733-ef2d3bc2b57c","block_type":"box","text":"board committee.","page_number":259,"box":{"x":150,"y":118,"width":134,"height":10}},{"id":"02f4d51c-9427-41e8-8845-bb38f4be6261","block_type":"box","text":"• Change of control provisions that appropriately balance the interests of executives and","page_number":259,"box":{"x":117,"y":142,"width":681,"height":12}},{"id":"46b6e57b-0cf3-44ab-b81a-bc61e968f7c1","block_type":"box","text":"shareholders.","page_number":259,"box":{"x":150,"y":157,"width":106,"height":10}},{"id":"ee8a8c86-3e6d-4fab-b94b-c65ae6ed41e4","block_type":"box","text":"• Clawback or malus provisions that allow the company to recoup or hold back variable","page_number":259,"box":{"x":117,"y":181,"width":671,"height":12}},{"id":"b54f8987-51ef-43b1-b2c3-8480c311ec49","block_type":"box","text":"compensation from individuals whose awards were based on fraudulent activities, misstated","page_number":259,"box":{"x":150,"y":196,"width":688,"height":12}},{"id":"f30948da-15af-4d1b-81e6-c821cf2df5af","block_type":"box","text":"financial reports, or executive misconduct.","page_number":259,"box":{"x":149,"y":212,"width":318,"height":12}},{"id":"b7d842cf-c86f-42c0-af12-d238565206a1","block_type":"box","text":"• Severance arrangements that protect the company’s interests but do not cost more than is","page_number":259,"box":{"x":117,"y":235,"width":709,"height":12}},{"id":"3f8dd5d9-01cf-41b1-a561-1bb03712857c","block_type":"box","text":"contractual.","page_number":259,"box":{"x":150,"y":251,"width":91,"height":9}},{"id":"c95fe455-a262-4037-ab5b-2ea9d672d7fd","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or","page_number":259,"box":{"x":116,"y":282,"width":757,"height":12}},{"id":"f3dfd795-1254-4836-be8f-1e20de66ed87","block_type":"box","text":"plans, or approve the compensation report where we do not see alignment between executive","page_number":259,"box":{"x":117,"y":298,"width":701,"height":12}},{"id":"1f8d72a1-766d-4651-b2ea-16dbe7e5c216","block_type":"box","text":"compensation arrangements and our clients’ financial interests. When there is not an alternative, or","page_number":259,"box":{"x":116,"y":313,"width":742,"height":12}},{"id":"f5437d8d-c32d-4743-92bb-2ff6f128a8b6","block_type":"box","text":"where there have been multi-year issues with compensation misaligned with performance, we may","page_number":259,"box":{"x":116,"y":329,"width":738,"height":12}},{"id":"309103a3-e73b-4e04-b8d5-c7ad2613e4dd","block_type":"box","text":"vote against the election of the chair of the responsible committee, or the most senior independent","page_number":259,"box":{"x":116,"y":344,"width":735,"height":12}},{"id":"12e42266-c854-4fa9-8065-8447ee9f8820","block_type":"box","text":"director.","page_number":259,"box":{"x":116,"y":360,"width":65,"height":9}},{"id":"28987bdd-42c0-49ee-ad78-fbdadf3d9809","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":259,"box":{"x":314,"y":399,"width":377,"height":10}},{"id":"2ecbc6f0-6a7c-483d-8266-80ce2c85f0e5","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a","page_number":259,"box":{"x":117,"y":431,"width":712,"height":12}},{"id":"c441aa2c-ac05-484f-a3f6-96203b8ac9ec","block_type":"box","text":"combination of the two. Some companies also pay additional fees for service on board committees or","page_number":259,"box":{"x":116,"y":446,"width":757,"height":13}},{"id":"8d041d88-7d0c-44cf-a411-773fbccc2a86","block_type":"box","text":"in board leadership roles. We do not support non-executive directors participating in performance","page_number":259,"box":{"x":117,"y":462,"width":726,"height":12}},{"id":"64c2da18-18da-4d66-aed3-3a68f67927cd","block_type":"box","text":"based incentive plans as doing so may create a conflict of interest and undermine their independence","page_number":259,"box":{"x":117,"y":477,"width":759,"height":13}},{"id":"6225fb1d-75e6-4358-9b98-ed7bc13e75db","block_type":"box","text":"from management, whom they oversee.","page_number":259,"box":{"x":116,"y":493,"width":301,"height":12}},{"id":"5c5a9bce-07a4-416e-8255-5bfb228ad201","block_type":"box","text":"CAPITAL STRUCTURE","page_number":259,"box":{"x":410,"y":533,"width":185,"height":9}},{"id":"1019dfff-9b06-4368-9eef-84f4c5c50cc5","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that","page_number":259,"box":{"x":117,"y":564,"width":765,"height":12}},{"id":"af93b1f9-250a-42d4-b575-dcfe769e9b7c","block_type":"box","text":"achieves appropriate capital allocation in support of long-term financial resilience.","page_number":259,"box":{"x":116,"y":580,"width":610,"height":12}},{"id":"baf2b20f-943d-4e8d-a333-24f1e4254012","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why","page_number":259,"box":{"x":116,"y":611,"width":743,"height":12}},{"id":"9619063f-b2d9-4f42-9a34-b62d3c3d54b1","block_type":"box","text":"they view these practices to be aligned with shareholders’ interests. We may vote against management","page_number":259,"box":{"x":116,"y":627,"width":772,"height":12}},{"id":"da5ab37b-294f-432a-8b2e-a7fbe894e0c7","block_type":"box","text":"proposals seeking capital-related authorities, or the election of the most senior independent director, if","page_number":259,"box":{"x":117,"y":642,"width":761,"height":12}},{"id":"20ccc323-2d55-4ab0-8e75-8859ea9bae37","block_type":"box","text":"we have concerns about a company’s approach. We may also support a shareholder proposal seeking","page_number":259,"box":{"x":116,"y":658,"width":768,"height":12}},{"id":"4cacbbf2-38b5-4589-ae2c-125da6e2c84a","block_type":"box","text":"conversion of shares with differentiated voting rights to a one-share, one-vote standard.","page_number":259,"box":{"x":116,"y":673,"width":649,"height":12}},{"id":"cb969e9a-3ebb-4309-98c3-901950493c33","block_type":"box","text":"Share","page_number":259,"box":{"x":116,"y":705,"width":46,"height":9}},{"id":"3872a6b8-5fee-4111-87ce-57459454bdb1","block_type":"box","text":"issuance","page_number":259,"box":{"x":168,"y":705,"width":71,"height":9}},{"id":"ab0e626e-1102-4c81-b1dc-45691d503463","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will","page_number":259,"box":{"x":116,"y":736,"width":735,"height":13}},{"id":"e5c05c7a-e949-4520-baa1-fb748d0c9d91","block_type":"box","text":"generally support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent","page_number":259,"box":{"x":116,"y":752,"width":763,"height":12}},{"id":"b8d59cf3-2faf-456f-b62c-8c0577cf4cc3","block_type":"box","text":"pre-emptive rights. We consider it good practice for companies to seek regular approval of these","page_number":259,"box":{"x":117,"y":767,"width":715,"height":13}},{"id":"c0df8bc3-3246-4106-a291-1103ce25da9a","block_type":"box","text":"authorities to allow shareholders to take into consideration how prior authorities were used, as well as","page_number":259,"box":{"x":116,"y":783,"width":754,"height":12}},{"id":"75f014de-efa3-4136-ae0b-19f0296f3931","block_type":"box","text":"the current circumstances of the company and the market environment.","page_number":259,"box":{"x":116,"y":798,"width":530,"height":13}},{"id":"434c142b-fc67-4907-9cf4-c6a718ebd2f2","block_type":"box","text":"Share buybacks","page_number":259,"box":{"x":116,"y":830,"width":133,"height":12}},{"id":"3ed5f6f1-5aa2-4e63-969f-052d1348f935","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management","page_number":259,"box":{"x":116,"y":862,"width":746,"height":12}},{"id":"e02e1899-5a7e-4019-99f0-baf2972e7b93","block_type":"box","text":"strategy and management’s determination of the appropriate balance between investment that","page_number":259,"box":{"x":116,"y":877,"width":706,"height":12}},{"id":"81341d93-7816-4a67-8c51-96bff0ee71b0","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":259,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"a7e84a02-9015-4321-8572-e28e1982b5d6","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":259,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"d38caadc-5e31-4448-8cbd-71af0bb06597","block_type":"box","text":"10","page_number":259,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"af192ee5-b168-413d-aee3-43cbb37535ee","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":259,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ad4a02c1-29f2-4e57-9f2b-6b01de585f0c","block_type":"box","text":"supports the long-term growth of the company and returning cash to investors. We also take into","page_number":260,"box":{"x":116,"y":87,"width":721,"height":12}},{"id":"749d2fce-ee85-4ff1-acc5-242b867e7d66","block_type":"box","text":"consideration the effect of a buyback program on the company’s balance sheet and executive","page_number":260,"box":{"x":116,"y":102,"width":701,"height":13}},{"id":"e2729ead-8352-443a-ae9b-09abdb1d6a89","block_type":"box","text":"compensation arrangements and the price at which shares are repurchased relative to market price.","page_number":260,"box":{"x":116,"y":118,"width":748,"height":12}},{"id":"6f832642-1b2e-4d0f-a54b-9492a19e93fa","block_type":"box","text":"We consider it good practice for companies to seek regular approval of these authorities to allow","page_number":260,"box":{"x":116,"y":134,"width":721,"height":12}},{"id":"d37650e3-1ac0-4b6b-9d63-cb86e99a9d33","block_type":"box","text":"shareholders to take into consideration how prior authorities were used, as well as the current","page_number":260,"box":{"x":116,"y":149,"width":700,"height":12}},{"id":"715041d8-70a5-4459-b143-9d2256184ee8","block_type":"box","text":"circumstances of the company and the market environment.","page_number":260,"box":{"x":116,"y":165,"width":451,"height":12}},{"id":"ee487fd3-ed82-49ed-8899-1f6d4e3a8079","block_type":"box","text":"Dividends","page_number":260,"box":{"x":117,"y":193,"width":84,"height":10}},{"id":"b8cc6d82-b32a-47fd-8e4a-fd4dabd0b747","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further","page_number":260,"box":{"x":116,"y":222,"width":752,"height":12}},{"id":"b9ff472b-b12d-4016-90e8-4bc2ef06c84c","block_type":"box","text":"clarification where a proposed dividend appears out of line with the company’s financial position.","page_number":260,"box":{"x":116,"y":238,"width":720,"height":12}},{"id":"172578e6-154a-4a55-b622-976c8b5acea4","block_type":"box","text":"Differentiated voting rights","page_number":260,"box":{"x":117,"y":266,"width":219,"height":12}},{"id":"7c6d24e3-06bf-4b0a-b30e-3356271cc545","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same","page_number":260,"box":{"x":116,"y":295,"width":710,"height":12}},{"id":"245dace2-b687-4e8f-9ea6-03a3a66b5d7b","block_type":"box","text":"economic exposure. Certain companies, particularly those new to public markets, could make the case","page_number":260,"box":{"x":116,"y":311,"width":768,"height":12}},{"id":"4dc73d35-79b3-420c-95ee-982871db9539","block_type":"box","text":"to adopt a differentiated voting rights structure, or dual class stock. In those situations, we encourage","page_number":260,"box":{"x":116,"y":326,"width":755,"height":12}},{"id":"aa2eb72d-a707-4bb9-b12f-330a44d9b68d","block_type":"box","text":"companies to evaluate and seek approval for their capital structure on a periodic basis.","page_number":260,"box":{"x":116,"y":342,"width":650,"height":11}},{"id":"5ab60296-d9c2-43b9-8c3c-51f1e0526a92","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":260,"box":{"x":320,"y":377,"width":364,"height":9}},{"id":"29a7d07c-a597-4099-881d-05e4699ae39d","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own","page_number":260,"box":{"x":116,"y":406,"width":712,"height":12}},{"id":"8a0e1e3d-e005-4dd1-8cfc-5606e9b4e74d","block_type":"box","text":"detailed analyses of proposals.","page_number":260,"box":{"x":116,"y":421,"width":235,"height":12}},{"id":"e8924c23-7cbc-4a48-b71c-a6b048b8181c","block_type":"box","text":"Mergers and acquisitions","page_number":260,"box":{"x":117,"y":457,"width":206,"height":12}},{"id":"ee4286e4-3f4b-49f0-837a-45e73fd7e7c5","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as","page_number":260,"box":{"x":116,"y":485,"width":745,"height":12}},{"id":"d4588e26-ffa4-4092-857b-bbd4984f6a94","block_type":"box","text":"minority shareholders. Management should provide an assessment of the proposed transaction’s","page_number":260,"box":{"x":117,"y":501,"width":725,"height":12}},{"id":"db355660-d81d-4cdb-bcb0-9b7b5165c6d6","block_type":"box","text":"strategic and financial rationale, along with its execution and operational risks. We review each","page_number":260,"box":{"x":116,"y":516,"width":709,"height":12}},{"id":"2d3981d4-18d7-408c-8790-e0e60d359e3e","block_type":"box","text":"transaction independently based on these factors and the degree to which the transaction enhances","page_number":260,"box":{"x":116,"y":532,"width":748,"height":12}},{"id":"b1328fd7-625d-41d3-9bab-daa905ae5e7c","block_type":"box","text":"shareholder value. The board might consider establishing an ad hoc transaction committee to","page_number":260,"box":{"x":116,"y":547,"width":699,"height":12}},{"id":"a2702ca5-963c-44ef-90b3-5bd7f1504f11","block_type":"box","text":"undertake an independent assessment of a significant merger or acquisition, in advance of making its","page_number":260,"box":{"x":117,"y":563,"width":757,"height":12}},{"id":"c40877b0-6c96-462a-80e1-decd90bbcbfa","block_type":"box","text":"recommendation to shareholders.","page_number":260,"box":{"x":117,"y":578,"width":254,"height":10}},{"id":"3a615996-6678-4d48-bd0e-1e56523116cf","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial","page_number":260,"box":{"x":116,"y":607,"width":703,"height":12}},{"id":"c2d5cc52-2d31-4b80-b00b-45cb55907654","block_type":"box","text":"interests.","page_number":260,"box":{"x":117,"y":623,"width":72,"height":9}},{"id":"0e9be9dd-3643-4535-bcc2-ce710359a409","block_type":"box","text":"Anti-takeover defenses","page_number":260,"box":{"x":116,"y":651,"width":190,"height":10}},{"id":"2db6a0ae-57e1-4bc6-87ed-9bd96c7f3b9e","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":260,"box":{"x":117,"y":680,"width":753,"height":12}},{"id":"c41f3a62-6d63-4959-93a5-37588d3aa44e","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered","page_number":260,"box":{"x":116,"y":696,"width":726,"height":12}},{"id":"9e5cadd5-7322-4446-8d38-46291a54d694","block_type":"box","text":"long-term shareholder value. By exception, a poison pill may be supported if its purpose is to delay a","page_number":260,"box":{"x":117,"y":711,"width":746,"height":12}},{"id":"2b5e9b73-5e58-44f6-8e4a-53f85879c0f4","block_type":"box","text":"takeover that is considered sub-optimal and enable management to seek an improved offer. Similarly,","page_number":260,"box":{"x":116,"y":727,"width":754,"height":12}},{"id":"2bd23841-f9f6-489b-b413-f4c5c36f8176","block_type":"box","text":"management could make the case to use a poison pill to block a shareholder activism campaign that","page_number":260,"box":{"x":117,"y":742,"width":746,"height":12}},{"id":"dd66dae8-84aa-4df1-8c77-a0dbbe652042","block_type":"box","text":"may be counter to the interests of other investors. Defense mechanisms introduced in these","page_number":260,"box":{"x":117,"y":758,"width":681,"height":12}},{"id":"a3091c6c-c3ad-4a78-bd43-036dcb203c11","block_type":"box","text":"circumstances should be limited in term and threshold, and also be closely monitored by the","page_number":260,"box":{"x":116,"y":773,"width":683,"height":12}},{"id":"12e2075e-dadf-47e6-a73c-0f7b6f253559","block_type":"box","text":"independent members of the board. We consider it good practice for companies to put to a shareholder","page_number":260,"box":{"x":117,"y":789,"width":766,"height":12}},{"id":"b9d9a5fe-f63c-4f4a-8167-c6b30149694f","block_type":"box","text":"vote any mechanisms expected to be in place for more than 12 months.","page_number":260,"box":{"x":116,"y":804,"width":532,"height":12}},{"id":"a647655d-54ba-42ea-93af-2d7a69ac9b92","block_type":"box","text":"Shareholder activism","page_number":260,"box":{"x":116,"y":833,"width":175,"height":9}},{"id":"e6ef1bda-69d1-4010-99db-fa7d120aaea7","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to","page_number":260,"box":{"x":116,"y":862,"width":732,"height":12}},{"id":"834bf383-0c0e-4d2e-956f-a6d56b4e957a","block_type":"box","text":"understand their analysis and objectives, once they have publicly disclosed their campaign. We may","page_number":260,"box":{"x":117,"y":877,"width":748,"height":12}},{"id":"9b316eb8-635a-4544-8a5c-929797b269e9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":260,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"97206ede-7531-4e56-92ba-4a48234dac05","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":260,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"edb273e5-bdd2-476a-924c-aa890109fafb","block_type":"box","text":"11","page_number":260,"box":{"x":866,"y":909,"width":15,"height":9}},{"id":"9c38b5e7-fbff-4859-8ae1-2855a7c81132","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":260,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"5174e10f-0b3f-4e79-9ce8-326342c5ce8a","block_type":"box","text":"also engage with company management and possibly board members, especially those the activist","page_number":261,"box":{"x":116,"y":87,"width":741,"height":12}},{"id":"77e1bc9e-f22b-4db5-9c19-a93d6871e130","block_type":"box","text":"may be seeking to replace. In our assessment, we evaluate various factors, including the concerns","page_number":261,"box":{"x":117,"y":102,"width":737,"height":13}},{"id":"59d30ea2-9dce-4601-b0b3-96cdab8874d7","block_type":"box","text":"raised by the activist and the case for change; the quality of both the activist’s and management’s","page_number":261,"box":{"x":117,"y":118,"width":728,"height":12}},{"id":"babbe4a9-8d5d-41d9-86e2-3e9adb95aea9","block_type":"box","text":"plans; and the qualifications of each party’s candidates. We evaluate each contested situation by","page_number":261,"box":{"x":117,"y":134,"width":723,"height":12}},{"id":"731d7197-af17-49b4-b961-cfc17932822b","block_type":"box","text":"assessing the potential financial outcome for our clients as minority shareholders.","page_number":261,"box":{"x":116,"y":149,"width":610,"height":12}},{"id":"1a202a0f-7d43-4098-8eda-f386ed4b4b79","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent","page_number":261,"box":{"x":116,"y":181,"width":728,"height":12}},{"id":"e7b156ce-eb32-4438-837a-274898637bfa","block_type":"box","text":"judgment, or the relevant portfolio manager has determined that there is a case for change to enhance","page_number":261,"box":{"x":115,"y":196,"width":767,"height":12}},{"id":"94418170-08c3-47b5-857b-a89aa98d43fd","block_type":"box","text":"shareholder value, or if the incumbent board members do not demonstrate the relevant skills and","page_number":261,"box":{"x":116,"y":212,"width":725,"height":11}},{"id":"50a54d21-6e5e-4e8f-9ff7-0075d06c9424","block_type":"box","text":"expertise or have a poor track record of protecting shareholders’ interests.","page_number":261,"box":{"x":116,"y":227,"width":556,"height":12}},{"id":"09cb536c-24c0-46dd-ba26-13d721e6c18f","block_type":"box","text":"Significant shareholders and related party transactions","page_number":261,"box":{"x":116,"y":259,"width":446,"height":12}},{"id":"dcef71ba-4722-42d0-8dbe-d72247aa5f07","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":261,"box":{"x":117,"y":291,"width":768,"height":12}},{"id":"9ac25307-c84f-42d0-a0d6-27f21b375f19","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":261,"box":{"x":117,"y":306,"width":534,"height":12}},{"id":"26ac3956-6a36-46b0-80e9-73938fa50df1","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or","page_number":261,"box":{"x":116,"y":338,"width":751,"height":12}},{"id":"88e1cb1f-a696-4bed-8431-8c9a81f2788a","block_type":"box","text":"companies affiliated with the public company, to be disclosed in detail and conducted on terms similar","page_number":261,"box":{"x":116,"y":354,"width":760,"height":12}},{"id":"0415f226-ff5d-4245-8805-356d981ca69b","block_type":"box","text":"to what would objectively have been agreed with a non-related party. In our view, such transactions","page_number":261,"box":{"x":116,"y":369,"width":743,"height":12}},{"id":"d9019405-b708-4482-a87b-0cf2008f9c53","block_type":"box","text":"should be reviewed and approved by the independent members of the board, and if voted on, only","page_number":261,"box":{"x":116,"y":385,"width":734,"height":12}},{"id":"ad80a2b8-0dbb-4b39-bab1-929671f26a19","block_type":"box","text":"disinterested shareholders should vote.","page_number":261,"box":{"x":116,"y":400,"width":297,"height":10}},{"id":"189061e3-1a6e-4f2d-8b65-95cc4e35445c","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":261,"box":{"x":257,"y":440,"width":490,"height":12}},{"id":"0dd6ce24-351a-4f61-a545-7bed8ee73f6e","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s","page_number":261,"box":{"x":117,"y":472,"width":742,"height":12}},{"id":"cd6f7297-810b-47e8-bbd0-1fd8746c54f0","block_type":"box","text":"strategy, its implementation and financial performance, as well as to assess the quality of management","page_number":261,"box":{"x":116,"y":487,"width":770,"height":12}},{"id":"742e93a9-4806-4bd0-a163-915da3c59474","block_type":"box","text":"and operations and potential for the company to create shareholder value over time. We consider it","page_number":261,"box":{"x":116,"y":503,"width":741,"height":12}},{"id":"4103fa66-c2fa-498e-9069-fe9e17e9ca57","block_type":"box","text":"good practice for the board to oversee corporate reporting and the policies and procedures","page_number":261,"box":{"x":116,"y":518,"width":679,"height":12}},{"id":"18953551-e9f5-4af9-a4a9-71617146907b","block_type":"box","text":"underpinning the internal audit function and external audit.","page_number":261,"box":{"x":117,"y":534,"width":436,"height":12}},{"id":"91092032-1037-4617-9a71-3de0e91b05b1","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other","page_number":261,"box":{"x":116,"y":566,"width":734,"height":12}},{"id":"1e1d30ec-3886-4666-b64b-5d09208a4d36","block_type":"box","text":"stakeholders, on its financial performance and position. It should provide an accurate and balanced","page_number":261,"box":{"x":116,"y":581,"width":742,"height":12}},{"id":"a9f76541-864f-4c74-bbb1-227486fcecbe","block_type":"box","text":"assessment of the risks and opportunities the company faces in realizing its long-term strategy.","page_number":261,"box":{"x":116,"y":597,"width":712,"height":12}},{"id":"a11ae4bd-d1bf-423f-aa77-b5920a07bfd7","block_type":"box","text":"Accordingly, the assumptions made by management and reviewed by the auditor in preparing the","page_number":261,"box":{"x":116,"y":612,"width":729,"height":12}},{"id":"5dc34527-3efb-4629-9ddc-658a45441001","block_type":"box","text":"financial statements should be reasonable and justified. Financial statements should be prepared in","page_number":261,"box":{"x":116,"y":628,"width":744,"height":12}},{"id":"f33be38f-bbc6-4a71-a605-528bdca76186","block_type":"box","text":"accordance with globally developed reporting standards and any divergence from generally accepted","page_number":261,"box":{"x":116,"y":643,"width":755,"height":12}},{"id":"1ae224cb-1d5d-45b9-9bd1-295be8978820","block_type":"box","text":"accounting principles should be explained in detail and justified. Accounting restatements should be","page_number":261,"box":{"x":116,"y":659,"width":745,"height":12}},{"id":"f5f0c09f-5d64-4146-9b75-0701b64d8bc8","block_type":"box","text":"explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":261,"box":{"x":116,"y":674,"width":631,"height":12}},{"id":"d37c1723-29af-4cf2-94ee-6388129b954a","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":261,"box":{"x":117,"y":706,"width":763,"height":12}},{"id":"25fee861-a0df-4530-a74a-719553b42a70","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction,","page_number":261,"box":{"x":117,"y":721,"width":731,"height":13}},{"id":"107b5347-5308-400f-ab5f-758319c4f5dd","block_type":"box","text":"non-financial information, internal control frameworks and Enterprise Risk Management systems. In","page_number":261,"box":{"x":117,"y":737,"width":737,"height":12}},{"id":"921a9c93-343e-4fc5-ade1-2ecc959f1ed0","block_type":"box","text":"our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":261,"box":{"x":116,"y":752,"width":725,"height":13}},{"id":"abaa4b8f-5593-499c-9b1e-3c76a78ca823","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders. Audit committees","page_number":261,"box":{"x":116,"y":768,"width":762,"height":12}},{"id":"08daca58-1117-42fb-93a8-d0d4a9599b55","block_type":"box","text":"should have a procedure in place for assessing the independence of the auditor and the quality of the","page_number":261,"box":{"x":116,"y":784,"width":753,"height":12}},{"id":"54307a59-209f-4924-b560-936e64ddaa90","block_type":"box","text":"external audit process annually.","page_number":261,"box":{"x":116,"y":799,"width":235,"height":12}},{"id":"fd14ec8b-a5a0-42dc-9824-2af6aa0543df","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to","page_number":261,"box":{"x":116,"y":831,"width":771,"height":12}},{"id":"7166f5af-2adb-430e-96c2-e5d1967c016f","block_type":"box","text":"how a company manages risks or generates revenue. BAIS finds it helpful to our understanding when","page_number":261,"box":{"x":117,"y":846,"width":758,"height":12}},{"id":"86f3fabc-b2a7-4c7d-8818-d62c7d3c2efd","block_type":"box","text":"companies provide robust, standardized disclosures on their material sustainability-related risks and","page_number":261,"box":{"x":116,"y":862,"width":747,"height":12}},{"id":"d59e1c12-8e1e-4fe9-bbe1-27b4b1978ab4","block_type":"box","text":"opportunities. The International Sustainability Standards Board (ISSB) is one entity working to meet","page_number":261,"box":{"x":116,"y":877,"width":743,"height":12}},{"id":"b083f229-6360-478e-a6b3-dabc62d28927","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":261,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"7f1be416-93c0-48e6-8e7a-66c53689dfaa","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":261,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"8814f02c-f2c9-4887-a029-3e56d1cf3dd0","block_type":"box","text":"12","page_number":261,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"91500b67-34d0-45b4-b828-1ecd7495e98f","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":261,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b15b774c-7d9b-4872-89c8-a9c704a88fbf","block_type":"box","text":"these objectives through its reporting standards, which may be helpful to companies in preparing such","page_number":262,"box":{"x":116,"y":87,"width":763,"height":12}},{"id":"1808cc82-aedf-4e9d-8dd6-2477f3cad9fa","block_type":"box","text":"reports.","page_number":262,"box":{"x":117,"y":103,"width":54,"height":11}},{"id":"44fb252f-4b6b-4dad-ae0a-ac2d328a2e40","block_type":"box","text":"9","page_number":262,"box":{"x":173,"y":103,"width":5,"height":6}},{"id":"fa2947fc-c0a7-46a1-ad72-5cf1f081319a","block_type":"box","text":"However, we do not mandate any specific disclosure framework, and note that companies in","page_number":262,"box":{"x":179,"y":102,"width":696,"height":13}},{"id":"a5ceb3b7-1fd8-44a1-8721-12de62886269","block_type":"box","text":"certain jurisdictions are subject to mandatory reporting requirements under standards specified by","page_number":262,"box":{"x":116,"y":118,"width":731,"height":12}},{"id":"32a3f633-64dc-40a1-8c9c-e5287dab34b7","block_type":"box","text":"policy makers.","page_number":262,"box":{"x":117,"y":134,"width":105,"height":12}},{"id":"4d5f5ded-0e37-4b6b-915c-fede76334eb6","block_type":"box","text":"10","page_number":262,"box":{"x":224,"y":134,"width":11,"height":6}},{"id":"b4b27537-6754-448b-8551-f4022752ceb6","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":262,"box":{"x":117,"y":161,"width":765,"height":12}},{"id":"e516e249-d115-4ec7-a534-5116f7e6bb5d","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for","page_number":262,"box":{"x":116,"y":176,"width":759,"height":12}},{"id":"9924526a-9118-4b52-b044-b4e529956814","block_type":"box","text":"employees, and potentially other stakeholders, can be a useful mechanism for ensuring that senior","page_number":262,"box":{"x":116,"y":192,"width":738,"height":12}},{"id":"b5b23efc-1852-44bb-aeb3-b1554ecec090","block_type":"box","text":"management and the board are aware of potential misconduct or breaches in risk management and","page_number":262,"box":{"x":117,"y":207,"width":745,"height":12}},{"id":"9d80d2d1-ce1e-442a-aafd-54f5f16cc225","block_type":"box","text":"internal control processes.","page_number":262,"box":{"x":117,"y":223,"width":200,"height":12}},{"id":"69d820c8-8057-4e83-8780-e731f970aa81","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in","page_number":262,"box":{"x":116,"y":250,"width":748,"height":12}},{"id":"cff0d2c5-105d-4a2c-a5d8-845ac10c172e","block_type":"box","text":"the quality of corporate reporting. It is helpful when the audit report gives some insight into the scope","page_number":262,"box":{"x":116,"y":266,"width":752,"height":12}},{"id":"8a23949c-cbf0-4a7a-912e-8614284876e9","block_type":"box","text":"and focus of the audit, as well as any critical audit matters identified and how these were resolved. A","page_number":262,"box":{"x":116,"y":281,"width":751,"height":12}},{"id":"cff1ad31-75b4-4228-8ad3-7cba04d193e6","block_type":"box","text":"comprehensive and effective audit is time and resource intensive, and the audit fee should be","page_number":262,"box":{"x":116,"y":297,"width":700,"height":12}},{"id":"47f5ccaf-a88e-4765-8a57-1db2b5012c92","block_type":"box","text":"commensurate. Fees paid to the audit firm for non-audit consulting should not exceed the audit fee to a","page_number":262,"box":{"x":116,"y":312,"width":771,"height":12}},{"id":"94396e0e-b27f-4b5e-8334-93380c33beee","block_type":"box","text":"degree that may prompt concerns about the independence of the audit. The audit committee should","page_number":262,"box":{"x":116,"y":328,"width":746,"height":12}},{"id":"9ee28bfe-9fe9-4d9e-99d2-6656e18ff47a","block_type":"box","text":"explain its position on auditor tenure and how it confirmed that the auditor remained independent.","page_number":262,"box":{"x":116,"y":343,"width":728,"height":12}},{"id":"ed0337fd-a5d7-4903-ab38-cda6e49e1358","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or","page_number":262,"box":{"x":116,"y":370,"width":740,"height":12}},{"id":"30c025b8-9278-4fdb-9c9c-7b6733010ffc","block_type":"box","text":"there are material misstatements in financial reports. In markets where relevant, we may vote against a","page_number":262,"box":{"x":116,"y":386,"width":771,"height":12}},{"id":"91803099-dfcd-4591-b332-0c7b39ce7a41","block_type":"box","text":"proposal to approve the financial statements or the discharge of the board when we are concerned","page_number":262,"box":{"x":117,"y":401,"width":737,"height":12}},{"id":"e9a7d575-635a-40e2-a17d-1eb2ac3a09e2","block_type":"box","text":"about the quality of corporate reporting or the audit. We may vote against proposals to appoint the","page_number":262,"box":{"x":116,"y":417,"width":734,"height":12}},{"id":"41249bed-9870-49bc-b816-efc86c4a52c7","block_type":"box","text":"auditor, ratify the audit report, or approve the audit fee if we are concerned about the auditor’s","page_number":262,"box":{"x":116,"y":432,"width":702,"height":12}},{"id":"f45781fc-6678-4f4d-8fb1-8f3545f36a98","block_type":"box","text":"independence, the quality of the audit, or there are material misstatements in financial reports and the","page_number":262,"box":{"x":117,"y":448,"width":760,"height":12}},{"id":"cfc18dae-86dc-40f1-83c4-f7aa9d924daf","block_type":"box","text":"board has not established reasonable remediation plans.","page_number":262,"box":{"x":117,"y":464,"width":426,"height":11}},{"id":"d15f0790-51ba-4a3f-a675-a875ca764b7f","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":262,"box":{"x":318,"y":496,"width":369,"height":10}},{"id":"a6cd2c15-5dce-4356-badb-a74a5910530f","block_type":"box","text":"General shareholder meetings","page_number":262,"box":{"x":116,"y":524,"width":247,"height":12}},{"id":"be05579e-69cd-42fd-b473-493371c827cf","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine","page_number":262,"box":{"x":117,"y":551,"width":768,"height":12}},{"id":"8fcde49e-6a77-4161-96bf-3a4bf03fb568","block_type":"box","text":"items of business are discussed and voted on by shareholders in attendance or submitting proxy votes.","page_number":262,"box":{"x":117,"y":567,"width":771,"height":12}},{"id":"b1170319-a24c-4b65-9bfc-598ea3925960","block_type":"box","text":"Companies should disclose materials relevant to the shareholder meeting sufficiently in advance so","page_number":262,"box":{"x":117,"y":582,"width":742,"height":12}},{"id":"46986a73-144a-4624-b9f9-f7c9d8a4cbf7","block_type":"box","text":"that shareholders can take them into consideration in their voting decisions. Many companies offer","page_number":262,"box":{"x":116,"y":598,"width":736,"height":12}},{"id":"3e29d091-a046-459a-84cf-d6c681d13f64","block_type":"box","text":"shareholders the option of participating in the meeting virtually which, whilst welcome, should not limit","page_number":262,"box":{"x":116,"y":613,"width":758,"height":12}},{"id":"104b06ab-5436-45a0-b653-f840e53627d9","block_type":"box","text":"the rights of shareholders to participate as they would during an in-person meeting.","page_number":262,"box":{"x":116,"y":629,"width":622,"height":12}},{"id":"741999e0-4922-4844-acaf-dddf789a1f10","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are","page_number":262,"box":{"x":116,"y":656,"width":757,"height":12}},{"id":"78481289-8bf6-4149-9c8e-7bb4bb46fb16","block_type":"box","text":"not provided in a timely manner or do not provide sufficient information for us to make an informed","page_number":262,"box":{"x":117,"y":671,"width":728,"height":12}},{"id":"8b21f70a-600f-437c-89b8-5cd0d4011f71","block_type":"box","text":"voting decision. We may vote against directors if the format of the shareholder meeting does not","page_number":262,"box":{"x":116,"y":687,"width":715,"height":12}},{"id":"574d20f5-0574-4b64-8d12-386127f9fb6e","block_type":"box","text":"accommodate reasonable shareholder participation.","page_number":262,"box":{"x":116,"y":702,"width":385,"height":12}},{"id":"21f41f04-a0e3-4dbe-945b-89df85861b09","block_type":"box","text":"Bylaw amendments","page_number":262,"box":{"x":117,"y":730,"width":155,"height":12}},{"id":"fd18ca3e-f532-44d2-8d74-d83d01b8a1b8","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally","page_number":262,"box":{"x":116,"y":757,"width":748,"height":12}},{"id":"7c2a3da5-a097-4277-9b04-1fd16dbb11ac","block_type":"box","text":"support those that are aligned with the interests of minority shareholders. Any material changes to the","page_number":262,"box":{"x":116,"y":772,"width":755,"height":12}},{"id":"b58e5e52-d0e9-44b8-aec0-e16b0ef82b91","block_type":"box","text":"bylaws should be explained in detail and put to a shareholder vote.","page_number":262,"box":{"x":117,"y":788,"width":494,"height":12}},{"id":"eed0677c-0ee0-43e6-be50-14827ad96d26","block_type":"box","text":"9","page_number":262,"box":{"x":143,"y":813,"width":4,"height":5}},{"id":"7245c9fe-be61-4ce0-bac8-3f4215226ab4","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards (IFRS)","page_number":262,"box":{"x":170,"y":813,"width":666,"height":10}},{"id":"b3276814-7a3f-4383-a2e1-676f6653bc64","block_type":"box","text":"Foundation. Please refer to the IFRS website to learn more about the framework and standards S1 “General","page_number":262,"box":{"x":171,"y":826,"width":641,"height":8}},{"id":"2756d012-7977-4bcc-a035-ae7dd1731308","block_type":"box","text":"Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related Disclosures.”","page_number":262,"box":{"x":171,"y":839,"width":672,"height":9}},{"id":"43f0aac9-c55d-4aac-9d77-2f3b0909864c","block_type":"box","text":"10","page_number":262,"box":{"x":144,"y":854,"width":8,"height":5}},{"id":"2a5248d8-16fc-42a8-8803-9fa2757335b0","block_type":"box","text":"See, for examples, https://www.ifrs.org/news-and-events/news/2025/06/ifrs-foundation-publishes-jurisdictional-profiles","page_number":262,"box":{"x":170,"y":854,"width":705,"height":9}},{"id":"b200cfa6-4e6b-434b-bcd4-0fd04d1b0f1d","block_type":"box","text":"issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company","page_number":262,"box":{"x":170,"y":867,"width":615,"height":9}},{"id":"bd32c141-8c11-4ea2-a187-85e80bf92828","block_type":"box","text":"reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en","page_number":262,"box":{"x":170,"y":880,"width":468,"height":9}},{"id":"c50b03d1-ae12-4304-b7f6-f72dcce92957","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":262,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"8f04a6d6-35a5-4ba6-b468-b1dcf18679e3","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":262,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"44a796de-f0f1-45df-b631-8341eb904da3","block_type":"box","text":"13","page_number":262,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"bbdc33e4-a51b-46b5-89be-fa4ad990a126","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":262,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ea9d35fc-4ea7-491b-a41a-1128c166ef83","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce","page_number":263,"box":{"x":116,"y":87,"width":753,"height":12}},{"id":"740b29e2-8bbc-41f1-ba5c-6222b9024499","block_type":"box","text":"additional burdens. We may vote against directors if material changes are made to the bylaws without","page_number":263,"box":{"x":116,"y":102,"width":760,"height":13}},{"id":"93a50552-f35c-416f-b663-3da47aaf081b","block_type":"box","text":"shareholder approval.","page_number":263,"box":{"x":116,"y":118,"width":167,"height":12}},{"id":"6eacbb0f-2ede-403f-bcfe-9cd2a009e917","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders,","page_number":263,"box":{"x":117,"y":150,"width":688,"height":12}},{"id":"bb080b4a-0d1d-4363-8aed-b067ee12b252","block_type":"box","text":"individually or as a group, with a meaningful shareholding, the right to call a special meeting of","page_number":263,"box":{"x":117,"y":165,"width":704,"height":12}},{"id":"3759acde-c041-4277-83de-6fcfba9fe815","block_type":"box","text":"shareholders. The shareholding required to exercise this right should balance its utility with the cost to","page_number":263,"box":{"x":116,"y":181,"width":761,"height":12}},{"id":"6f0c0df7-1008-4a61-bcfb-f16e27fea4ee","block_type":"box","text":"the company of holding special meetings.","page_number":263,"box":{"x":116,"y":196,"width":313,"height":12}},{"id":"e22c4163-a4a6-4a34-8a35-5365ec5abf7b","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders,","page_number":263,"box":{"x":117,"y":228,"width":688,"height":12}},{"id":"81b22c03-ac26-4432-8254-d852c80f89d7","block_type":"box","text":"individually or as a group, with a meaningful shareholding, the right to nominate directors to the","page_number":263,"box":{"x":117,"y":243,"width":710,"height":12}},{"id":"450c4f57-d510-4794-a3ac-958e496f844d","block_type":"box","text":"company’s board. The threshold for this right should be set so that shareholders can exercise it without","page_number":263,"box":{"x":116,"y":259,"width":770,"height":12}},{"id":"52f5ba67-f9df-416a-a1a2-1a67354a3cf1","block_type":"box","text":"being unduly disruptive to the board’s own nomination process.","page_number":263,"box":{"x":117,"y":274,"width":473,"height":12}},{"id":"36ab2a45-f335-4b7d-b73a-9738e91990b4","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability","page_number":263,"box":{"x":116,"y":306,"width":728,"height":12}},{"id":"2d166304-4823-4cb9-a45f-114c339373e2","block_type":"box","text":"mechanisms. We may vote for a shareholder proposal seeking the addition of either of these","page_number":263,"box":{"x":117,"y":321,"width":691,"height":12}},{"id":"dfed5300-7cd7-4e82-b729-b265a05736f8","block_type":"box","text":"provisions to a company’s bylaws.","page_number":263,"box":{"x":117,"y":337,"width":258,"height":12}},{"id":"494321c0-6032-4dcd-bbcc-f07999dad4f6","block_type":"box","text":"Change of domicile","page_number":263,"box":{"x":116,"y":368,"width":160,"height":12}},{"id":"48566a6e-3300-4b87-8d7f-ba6268116bf8","block_type":"box","text":"We generally defer to management on proposals to change a company’s domicile as long as the","page_number":263,"box":{"x":116,"y":400,"width":722,"height":12}},{"id":"747ba735-17ca-4c39-9730-78aafb5f46bb","block_type":"box","text":"rationale for doing so is consistent with the company’s long-term strategy and business model and the","page_number":263,"box":{"x":117,"y":415,"width":761,"height":12}},{"id":"d85d64e7-b41b-4828-9776-ba0bb91d1374","block_type":"box","text":"related costs are immaterial.","page_number":263,"box":{"x":117,"y":431,"width":215,"height":9}},{"id":"6989fd6f-d104-44fb-8576-6a7224a3e5d6","block_type":"box","text":"We may vote against directors or a proposal to change a company’s domicile where it does not seem","page_number":263,"box":{"x":116,"y":462,"width":757,"height":12}},{"id":"47c05462-d40a-48cb-83ec-cfc8ae2c08c2","block_type":"box","text":"aligned with our clients’ financial interests.","page_number":263,"box":{"x":116,"y":478,"width":318,"height":12}},{"id":"e42e305a-d451-4359-9045-7993be9dd581","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":263,"box":{"x":116,"y":509,"width":504,"height":12}},{"id":"a923f77e-52d8-4386-949c-473063e2f1db","block_type":"box","text":"Plans to materially change the nature of a company’s business or its purpose should be disclosed and","page_number":263,"box":{"x":117,"y":541,"width":762,"height":12}},{"id":"2d3efa3a-4b06-4fde-bf1e-5a7f4cba1083","block_type":"box","text":"explained in the context of long-term strategy and business dynamics. Such changes may significantly","page_number":263,"box":{"x":116,"y":556,"width":764,"height":12}},{"id":"d9feb40b-9a9b-4d74-bd1a-3edd03bcf3e7","block_type":"box","text":"alter an investor’s views on the suitability of a company for their investment strategy or portfolio.","page_number":263,"box":{"x":116,"y":572,"width":716,"height":12}},{"id":"4673e4d1-316a-4393-ab99-788a4753d184","block_type":"box","text":"Where relevant, we may vote against proposals to change a company’s purpose or the nature of its","page_number":263,"box":{"x":116,"y":603,"width":743,"height":12}},{"id":"04d3983e-803a-4bfc-8df7-b2a7428c9325","block_type":"box","text":"business if the board has not provided a credible argument for change.","page_number":263,"box":{"x":117,"y":619,"width":530,"height":12}},{"id":"4db016fe-bb04-42fa-967f-e8d002f206eb","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":263,"box":{"x":380,"y":658,"width":244,"height":10}},{"id":"2335fa97-140a-4c58-8340-a3d28a00610b","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals","page_number":263,"box":{"x":116,"y":690,"width":750,"height":12}},{"id":"d785dd8a-9e37-4d8b-9428-ec57c825841e","block_type":"box","text":"to the general shareholder meeting asking a company to take a particular course of action subject to","page_number":263,"box":{"x":116,"y":705,"width":744,"height":13}},{"id":"02896580-f2b0-4d02-ac56-fef604946024","block_type":"box","text":"the proposal being supported by a majority of votes cast at the meeting. The topics raised can address","page_number":263,"box":{"x":116,"y":721,"width":762,"height":12}},{"id":"c7c3fe03-55db-40cb-b500-e34f18faae99","block_type":"box","text":"a range of matters that may be relevant to a company’s business.","page_number":263,"box":{"x":116,"y":736,"width":486,"height":13}},{"id":"56468830-6bfe-48ec-9677-b55f962068f6","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":263,"box":{"x":116,"y":768,"width":762,"height":12}},{"id":"90102d4a-e382-48cc-83a1-08f80240e4a1","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with","page_number":263,"box":{"x":116,"y":784,"width":691,"height":12}},{"id":"3b9f5151-d89a-472a-b4bc-44ecec376d7c","block_type":"box","text":"shareholders’ interests, and what impact the proposal being acted upon might have on financial","page_number":263,"box":{"x":116,"y":799,"width":708,"height":12}},{"id":"43ce9cec-1e8f-4de8-9f9f-3600a5a33cce","block_type":"box","text":"performance.","page_number":263,"box":{"x":117,"y":814,"width":96,"height":12}},{"id":"4b93009e-d589-4f24-b2d1-5ed57d9f01cf","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or","page_number":263,"box":{"x":116,"y":846,"width":711,"height":12}},{"id":"d10d19d3-76d0-4aca-b13b-cf54df82225c","block_type":"box","text":"performance is to engage to understand the apparent difference in perspective. If we are concerned a","page_number":263,"box":{"x":117,"y":861,"width":760,"height":13}},{"id":"4d76c8f3-5145-4f43-93f7-5ff2560ee1ed","block_type":"box","text":"company is not acting in shareholders’ financial interests, we may vote against the election of directors.","page_number":263,"box":{"x":116,"y":877,"width":772,"height":12}},{"id":"1d6ab2df-b3aa-4d67-ba5b-74883f6abcb8","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":263,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"6fea2221-62ad-4ca8-8f94-627ce363da62","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":263,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"dc88c0f7-f18b-4e8c-91b0-fd83a256ab8e","block_type":"box","text":"14","page_number":263,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"e796f32f-e2ca-4925-963c-cdc821971062","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":263,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"93967571-4fe3-4e92-8ad2-cb0c53c7cb89","block_type":"box","text":"We may support a relevant shareholder proposal if doing so is aligned with our clients’ financial","page_number":264,"box":{"x":116,"y":87,"width":712,"height":12}},{"id":"1d96e1fb-a5ae-4b55-9f09-ed7391b4f391","block_type":"box","text":"interests. We generally do not support shareholder proposals that are legally binding on the company,","page_number":264,"box":{"x":117,"y":103,"width":760,"height":12}},{"id":"9dfd38ab-1ab8-4f6b-8d4f-fe009bfb5502","block_type":"box","text":"seek to alter a company’s strategy or direct its operations, or are unrelated to how a company","page_number":264,"box":{"x":116,"y":118,"width":700,"height":12}},{"id":"96956c60-f9f3-4331-9c8b-a7a423a6c170","block_type":"box","text":"manages risk or generates financial returns.","page_number":264,"box":{"x":117,"y":134,"width":331,"height":12}},{"id":"e0f7052e-d971-4d74-b1ca-801168528cf7","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place","page_number":264,"box":{"x":117,"y":164,"width":737,"height":12}},{"id":"37769c02-c554-41bc-b056-1c4d400aa155","block_type":"box","text":"restrictions and limitations on how we can interact with the companies in which we invest on behalf of","page_number":264,"box":{"x":117,"y":180,"width":755,"height":12}},{"id":"6c465f5a-5a5f-4daa-a532-4dc668d650b1","block_type":"box","text":"our clients, including our ability to submit shareholder proposals. We do not submit shareholder","page_number":264,"box":{"x":116,"y":195,"width":712,"height":12}},{"id":"fbb357e9-4307-4879-8fbe-666f06b0ba48","block_type":"box","text":"proposals but can vote, on behalf of clients who authorize us to do so, on proposals put forth by others.","page_number":264,"box":{"x":117,"y":211,"width":770,"height":12}},{"id":"1cb0789d-4b02-4b58-b779-14d918934ded","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":264,"box":{"x":351,"y":249,"width":302,"height":10}},{"id":"e819550a-7c6c-4890-881a-589b22440648","block_type":"box","text":"A corporation’s ability to engage in the policy process is subject to rules and regulations set by the","page_number":264,"box":{"x":116,"y":280,"width":733,"height":12}},{"id":"f608b280-5a61-4f13-984f-05bb2ffcb0dd","block_type":"box","text":"jurisdictions in which they engage. When a corporation reports material financial risk related to policy","page_number":264,"box":{"x":115,"y":295,"width":754,"height":12}},{"id":"419d5b8e-3e1e-491e-a82f-9a11f26a8500","block_type":"box","text":"and or regulatory changes, BAIS may seek to understand how it is addressing the material risk","page_number":264,"box":{"x":116,"y":311,"width":708,"height":12}},{"id":"32b2b2df-47a4-4f5b-8013-836400551b39","block_type":"box","text":"identified. We seek to understand how companies engage in corporate political activities and ensure","page_number":264,"box":{"x":117,"y":326,"width":748,"height":12}},{"id":"3067f909-9511-47a2-a451-b56e7939df6d","block_type":"box","text":"that their participation is consistent with their public statements on policy matters material to the","page_number":264,"box":{"x":116,"y":342,"width":714,"height":12}},{"id":"8e734c3f-fc87-41d6-8600-b04afb2b04c7","block_type":"box","text":"company’s long-term strategy. The board should be aware of the approach taken by management on","page_number":264,"box":{"x":116,"y":357,"width":756,"height":12}},{"id":"51011e92-5061-4231-8167-37984a591229","block_type":"box","text":"corporate political activities as there can be reputational risks arising from inconsistencies between a","page_number":264,"box":{"x":116,"y":373,"width":752,"height":12}},{"id":"79b93334-d954-4277-ba45-94db730f2108","block_type":"box","text":"company’s policy engagement and stated policy positions. Companies should, as a minimum, meet all","page_number":264,"box":{"x":116,"y":388,"width":764,"height":12}},{"id":"4a467fb5-7dc8-46f5-ac68-4f71922d4661","block_type":"box","text":"regulatory disclosure requirements on political activities. We may engage a company where we would","page_number":264,"box":{"x":117,"y":404,"width":759,"height":12}},{"id":"5fcc0977-868b-4e15-a6dd-d237beedf79c","block_type":"box","text":"like to better understand its approach to policy engagement, where relevant.","page_number":264,"box":{"x":117,"y":419,"width":569,"height":12}},{"id":"3c6cfb98-bcb3-4650-ad1a-fc5364f2b6aa","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their","page_number":264,"box":{"x":116,"y":450,"width":737,"height":12}},{"id":"324eaa3f-7b3f-4622-a09d-59f2993f3c71","block_type":"box","text":"policy priorities and the policy positions of the trade associations of which they are active members and","page_number":264,"box":{"x":117,"y":465,"width":770,"height":13}},{"id":"f4013def-9fe6-4b73-a602-80bcaae153b9","block_type":"box","text":"any engagements undertaken by trade associations on behalf of members.","page_number":264,"box":{"x":116,"y":481,"width":562,"height":12}},{"id":"3aa86397-945f-4ef7-ae30-31d5027a6d23","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s","page_number":264,"box":{"x":116,"y":512,"width":712,"height":12}},{"id":"ea1c116b-c847-44c7-8e49-20162551f6df","block_type":"box","text":"disclosures are insufficient to address the material risk it has identified.","page_number":264,"box":{"x":116,"y":527,"width":530,"height":10}},{"id":"3b5a1e42-be26-4a6d-8a43-85d9be63c1c8","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":264,"box":{"x":223,"y":565,"width":559,"height":10}},{"id":"e846b843-a5a3-42ee-97d1-e7c86d834bc9","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their","page_number":264,"box":{"x":116,"y":596,"width":751,"height":12}},{"id":"2eb3f432-dc16-45d8-9065-b933b57e5545","block_type":"box","text":"business operations. In our experience, sustainability-related factors","page_number":264,"box":{"x":117,"y":612,"width":505,"height":12}},{"id":"25217761-4f54-4b35-be6e-4c6797065d19","block_type":"box","text":"11","page_number":264,"box":{"x":624,"y":612,"width":9,"height":6}},{"id":"50a2a16b-ab8a-40c9-afea-2aa49ea2adee","block_type":"box","text":"that are relevant to a company’s","page_number":264,"box":{"x":635,"y":612,"width":249,"height":12}},{"id":"d616ed79-c7cf-4eef-85e9-0bc4cf605b68","block_type":"box","text":"business or material to its financial performance, are generally operational considerations embedded","page_number":264,"box":{"x":117,"y":627,"width":752,"height":12}},{"id":"08dec695-f8c2-407a-ae0d-b887a6f86879","block_type":"box","text":"into day-to-day management systems. Certain sustainability issues may also inform long-term strategic","page_number":264,"box":{"x":117,"y":643,"width":769,"height":12}},{"id":"fd2fd8d7-76fb-400a-b9b8-8f745fe98c5e","block_type":"box","text":"planning, for example, investing in product innovation in anticipation of changing consumer demand or","page_number":264,"box":{"x":117,"y":658,"width":763,"height":12}},{"id":"72eccccb-f61c-4641-ba46-8b0edac12cc8","block_type":"box","text":"adapting supply chains in response to changing regulatory requirements.","page_number":264,"box":{"x":116,"y":674,"width":540,"height":12}},{"id":"0d546bc0-e431-4549-b78c-647eb4899e66","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business","page_number":264,"box":{"x":116,"y":704,"width":763,"height":12}},{"id":"24c5fc09-6501-4d4d-a526-fd0dfdd1abc3","block_type":"box","text":"relevant will vary by company business model, sector, key markets, and time horizon, amongst other","page_number":264,"box":{"x":117,"y":720,"width":747,"height":12}},{"id":"8f802dd5-d04f-4cb2-b186-92f85afcf4c0","block_type":"box","text":"considerations. From company disclosures and our engagement, we aim to understand how","page_number":264,"box":{"x":116,"y":735,"width":684,"height":12}},{"id":"efaa1b6e-7c87-4633-8ddc-6fb82e9c0251","block_type":"box","text":"management is identifying, assessing and integrating material sustainability-related risks and","page_number":264,"box":{"x":117,"y":751,"width":688,"height":12}},{"id":"b4807bb2-1cdd-4818-abd5-1f75c97ddfe2","block_type":"box","text":"11","page_number":264,"box":{"x":144,"y":776,"width":7,"height":5}},{"id":"85933dbb-6433-4602-879b-530d187bb422","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in a","page_number":264,"box":{"x":171,"y":776,"width":691,"height":10}},{"id":"871c8537-3e1b-4c8f-bf3d-6f2d4e9080fe","block_type":"box","text":"company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":264,"box":{"x":170,"y":789,"width":686,"height":10}},{"id":"4c5ec9bb-d078-4817-9be8-8219497dc1ea","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":264,"box":{"x":170,"y":802,"width":682,"height":9}},{"id":"74c1731f-1d2a-4923-b12f-96b353306660","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":264,"box":{"x":170,"y":815,"width":683,"height":9}},{"id":"e7e9e5ce-5c43-4811-9169-b9801514956c","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will effectively","page_number":264,"box":{"x":170,"y":828,"width":708,"height":9}},{"id":"ddd2986e-77f4-4040-96ef-9537b0b78166","block_type":"box","text":"evaluate and manage material sustainability-related risks and opportunities relevant to their businesses. Governance is","page_number":264,"box":{"x":170,"y":841,"width":707,"height":9}},{"id":"5921b374-bde5-42fa-9c60-2f6605a3931c","block_type":"box","text":"the core means by which boards can oversee the creation of durable financial value over time. Appropriate risk","page_number":264,"box":{"x":170,"y":853,"width":658,"height":10}},{"id":"96757baf-b8b2-43aa-91f8-414ed6da611d","block_type":"box","text":"oversight of business-relevant and material sustainability-related considerations is a component of a sound governance","page_number":264,"box":{"x":170,"y":866,"width":708,"height":10}},{"id":"a44d30d0-7996-42ac-bb72-2f386deb37dc","block_type":"box","text":"framework.","page_number":264,"box":{"x":170,"y":879,"width":65,"height":8}},{"id":"b36eaf37-86a0-4f62-bc95-7ce6b16ea37b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":264,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"d95d5eef-33b5-40f6-9977-b65746b14a34","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":264,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"9c346472-b709-42d0-bc68-f6e4c57bb60c","block_type":"box","text":"15","page_number":264,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"4c3d0d27-c270-4c38-88a2-b96112b28727","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":264,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"631c22b2-28a4-40fd-bfe4-a9559fb93d71","block_type":"box","text":"opportunities into their business decision-making and practices. Doing so helps us undertake a more","page_number":265,"box":{"x":116,"y":87,"width":752,"height":12}},{"id":"e41f4443-302f-4adf-8fc1-e5e28d39a9d5","block_type":"box","text":"holistic assessment of a company’s potential financial performance and the likely risk-adjusted returns","page_number":265,"box":{"x":117,"y":102,"width":761,"height":13}},{"id":"1b4c239a-91ac-42c0-8025-6f4bdcba012b","block_type":"box","text":"of an investment.","page_number":265,"box":{"x":116,"y":118,"width":133,"height":10}},{"id":"25269775-fdbd-43d0-9e35-b04a1734dbde","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about","page_number":265,"box":{"x":116,"y":145,"width":753,"height":12}},{"id":"89b6e34f-18a1-4e8c-89a3-676b1a0dba59","block_type":"box","text":"how a company is managing or disclosing its approach to material sustainability-related risks that may","page_number":265,"box":{"x":117,"y":161,"width":761,"height":12}},{"id":"b0c71f18-d3e8-492c-abf4-6383859c8259","block_type":"box","text":"impact financial returns.","page_number":265,"box":{"x":117,"y":176,"width":181,"height":12}},{"id":"d3d87784-32c8-4103-82b4-f31c556891b5","block_type":"box","text":"KEY STAKEHOLDERS","page_number":265,"box":{"x":412,"y":209,"width":182,"height":10}},{"id":"4b798a2e-a279-4eb9-9e40-2c40c33e5cac","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various","page_number":265,"box":{"x":117,"y":236,"width":727,"height":12}},{"id":"b6acb2c6-90b4-4ece-b6c1-25154f859942","block_type":"box","text":"parties on whom they depend for their success over time. It is for each company to determine their key","page_number":265,"box":{"x":117,"y":252,"width":766,"height":12}},{"id":"5507a67b-7924-43f7-9507-48a3556c0e03","block_type":"box","text":"stakeholders based on what is material to their business and long-term financial performance. For","page_number":265,"box":{"x":116,"y":267,"width":731,"height":12}},{"id":"db85ac3f-95c6-44b0-ba0c-ab17a6678794","block_type":"box","text":"many companies, key stakeholders include employees, business partners (such as suppliers and","page_number":265,"box":{"x":117,"y":283,"width":726,"height":12}},{"id":"ae4d5613-30c4-4a78-be08-1b49b74c9b7c","block_type":"box","text":"distributors), clients and consumers, regulators, and the communities in which they operate.","page_number":265,"box":{"x":116,"y":298,"width":687,"height":12}},{"id":"3ccfa291-4a6a-42da-b8e0-00638732625a","block_type":"box","text":"Companies that appropriately balance the interests of investors and other stakeholders are, in our","page_number":265,"box":{"x":117,"y":314,"width":730,"height":12}},{"id":"014a49ce-42a5-46a8-a235-84abadcc8bf3","block_type":"box","text":"experience, more likely to be financially resilient over time.","page_number":265,"box":{"x":116,"y":329,"width":438,"height":12}},{"id":"3d4064e8-0504-4bf3-bddb-ae2cf823afe1","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":265,"box":{"x":246,"y":362,"width":513,"height":10}},{"id":"4349e074-09b6-427e-8f04-e048171f5065","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial","page_number":265,"box":{"x":117,"y":389,"width":737,"height":12}},{"id":"9af0dcdd-5857-48e3-b8da-5f96a3294f05","block_type":"box","text":"objectives. Consistent with the objectives of those investment strategies, our stewardship activity in","page_number":265,"box":{"x":116,"y":405,"width":741,"height":12}},{"id":"2f0d0372-27bc-41f5-a651-509a1b1d4cc6","block_type":"box","text":"relation to the holdings in those funds differs in some respects from BAIS’ benchmark guidelines, which","page_number":265,"box":{"x":117,"y":420,"width":771,"height":12}},{"id":"df285e83-71a3-4535-95e3-6103ace54f90","block_type":"box","text":"are described above. Specifically, for those funds’ holdings, we look to investee companies to","page_number":265,"box":{"x":116,"y":436,"width":699,"height":12}},{"id":"83d7eda3-6cec-4e41-bc5f-ee2de6fa43b5","block_type":"box","text":"demonstrate that they are aligned with a decarbonization pathway that means their business model","page_number":265,"box":{"x":116,"y":451,"width":742,"height":12}},{"id":"9d89161b-26bc-4170-bc2c-a233d4dd00ca","block_type":"box","text":"would be viable in a low-carbon economy, i.e., one in which global temperature rise is limited to 1.5°C","page_number":265,"box":{"x":116,"y":467,"width":759,"height":12}},{"id":"c08cb31f-10fe-464f-a4ee-296b44b4cc1b","block_type":"box","text":"above pre-industrial levels. In addition, clients in separately managed accounts may instruct BlackRock","page_number":265,"box":{"x":116,"y":482,"width":771,"height":12}},{"id":"eb2caa58-d0cf-4935-982c-a9a876906a0c","block_type":"box","text":"to apply these guidelines to their holdings. Both in the case of funds and separately managed","page_number":265,"box":{"x":116,"y":498,"width":698,"height":12}},{"id":"f8476262-7bd8-4efa-bfbf-af640f8ef560","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable","page_number":265,"box":{"x":116,"y":514,"width":770,"height":11}},{"id":"976536a4-4e95-4930-b221-27ad88b0e314","block_type":"box","text":"fund board or client.","page_number":265,"box":{"x":116,"y":529,"width":153,"height":9}},{"id":"93452cc9-4661-4d59-b219-ebdfc6bb3493","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services","page_number":265,"box":{"x":116,"y":556,"width":766,"height":12}},{"id":"b7501164-0370-4769-b28b-d0e52f27514a","block_type":"box","text":"that contribute to real world decarbonization or have a carbon intensive business model and face","page_number":265,"box":{"x":116,"y":571,"width":724,"height":10}},{"id":"4f31e08a-0de4-4123-9c19-375e1be5c7c3","block_type":"box","text":"outsized impacts from the low carbon transition, based on reported and estimated scopes 1, 2, and 3","page_number":265,"box":{"x":116,"y":587,"width":754,"height":12}},{"id":"8385b262-9b88-46a9-b088-1d27ebb62606","block_type":"box","text":"greenhouse gas emissions. These companies should provide disclosures that set out their","page_number":265,"box":{"x":116,"y":603,"width":675,"height":12}},{"id":"d5569a88-68af-44a8-a871-e43a0e4ca7cd","block_type":"box","text":"governance, strategy, risk management processes and metrics and targets relevant to","page_number":265,"box":{"x":116,"y":618,"width":646,"height":12}},{"id":"1006a00a-019e-46e7-81aa-add503666062","block_type":"box","text":"decarbonization. It is helpful to investors’ understanding when these disclosures include an explanation","page_number":265,"box":{"x":116,"y":634,"width":770,"height":12}},{"id":"09c2d8b1-567c-4536-95b3-5b8af50e0491","block_type":"box","text":"of the decarbonization scenarios a company is using in its near- and long-term planning, as well as its","page_number":265,"box":{"x":116,"y":649,"width":760,"height":12}},{"id":"b94596b8-8743-478b-b1ea-49fc13efd8f4","block_type":"box","text":"scope 1, scope 2 and material scope 3 greenhouse gas (GHG) emissions and reduction targets for","page_number":265,"box":{"x":116,"y":665,"width":735,"height":12}},{"id":"7ac2a55c-1eff-4b75-8673-ac01b05cde6c","block_type":"box","text":"scope 1 and 2 emissions.","page_number":265,"box":{"x":116,"y":680,"width":188,"height":12}},{"id":"1ea8e881-11ad-4f12-a512-bb0b70687b9e","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against","page_number":265,"box":{"x":117,"y":707,"width":739,"height":12}},{"id":"135385ee-c1d7-4131-87b7-1e098a54ac08","block_type":"box","text":"directors or support for a relevant shareholder proposal if a company does not appear to be adequately","page_number":265,"box":{"x":116,"y":723,"width":766,"height":12}},{"id":"4e54dcf9-3c8d-4546-b8c6-c308fef0ec15","block_type":"box","text":"acting to address or disclosing material climate-related risks, consistent with the parameters set out in","page_number":265,"box":{"x":116,"y":738,"width":755,"height":12}},{"id":"c8ccdd76-d563-4066-bc3d-567d50b17e25","block_type":"box","text":"these climate- and decarbonization-specific guidelines. We may recommend supporting shareholder","page_number":265,"box":{"x":116,"y":754,"width":744,"height":12}},{"id":"80029a59-e7a6-43dd-8b6d-f81e3ed19390","block_type":"box","text":"proposals seeking information relevant to a company’s stated low-carbon transition strategy or targets","page_number":265,"box":{"x":117,"y":769,"width":755,"height":12}},{"id":"5504b760-94d1-41b2-8548-954462d59a1b","block_type":"box","text":"that the company does not currently provide and that would be helpful to investment decision-making.","page_number":265,"box":{"x":116,"y":785,"width":753,"height":12}},{"id":"3584059d-2858-46c3-997b-b23d3035542b","block_type":"box","text":"We would not recommend support for shareholder proposals that seek to constrain board or","page_number":265,"box":{"x":116,"y":800,"width":684,"height":12}},{"id":"12856434-e856-48da-9210-cb4687277331","block_type":"box","text":"management decision-making or direct specific business or strategic decisions. As under the BAIS","page_number":265,"box":{"x":117,"y":816,"width":730,"height":12}},{"id":"66d7c2b7-f505-46c0-97fd-bc95357893c4","block_type":"box","text":"benchmark approach, the active portfolio managers are ultimately responsible for voting consistent","page_number":265,"box":{"x":117,"y":831,"width":737,"height":12}},{"id":"4875e703-444e-4095-b25b-02c43135b882","block_type":"box","text":"with their investment mandate and fund objectives. For the funds and accounts in scope, voting on","page_number":265,"box":{"x":116,"y":847,"width":736,"height":12}},{"id":"de9a9f4b-c57f-4d3a-be0c-3432af61c5b1","block_type":"box","text":"matters not related to climate risk and the energy transition is undertaken in line with BAIS’ benchmark","page_number":265,"box":{"x":117,"y":862,"width":765,"height":12}},{"id":"5e9d1ce2-9d63-432c-a5b9-f06b94808884","block_type":"box","text":"guidelines.","page_number":265,"box":{"x":116,"y":878,"width":85,"height":12}},{"id":"489c028e-91af-4e54-a173-83bacee17678","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":265,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"45ff0219-71d3-4676-a229-824a0b65e149","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":265,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"6962905f-e55f-4b86-96c7-57f78397b07d","block_type":"box","text":"16","page_number":265,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"33c991d3-dde8-432d-a5d1-1528b199dd0b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":265,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8e875963-c7b3-4fc9-ae7e-2306c6c0c597","block_type":"box","text":"APPENDIX 1: HOW WE FULFIL AND OVERSEE OUR INVESTMENT STEWARDSHIP","page_number":266,"box":{"x":171,"y":87,"width":662,"height":10}},{"id":"508a47b9-3554-48e0-a49c-a0af38949fbc","block_type":"box","text":"RESPONSIBILITIES","page_number":266,"box":{"x":423,"y":102,"width":159,"height":10}},{"id":"a59263b0-23ce-44bf-aab7-e0f68dcf100b","block_type":"box","text":"Oversight","page_number":266,"box":{"x":116,"y":132,"width":83,"height":12}},{"id":"a8f79ee9-1062-49c4-a9d8-f6a0c1af9a7a","block_type":"box","text":"The Global Head of BAIS has primary oversight of and responsibility for the team’s activities, including","page_number":266,"box":{"x":116,"y":161,"width":764,"height":12}},{"id":"340021ff-9bb2-4bd8-868d-2ab20d4ec0aa","block_type":"box","text":"voting in accordance with the BlackRock Active Investment Stewardship Global Engagement and","page_number":266,"box":{"x":116,"y":177,"width":726,"height":12}},{"id":"a435c2f5-1668-42e4-b151-b41f876fe68a","block_type":"box","text":"Voting Guidelines (the “Guidelines”), which require the application of professional judgment and","page_number":266,"box":{"x":116,"y":192,"width":714,"height":12}},{"id":"a1020b13-a17b-49bc-96b6-b1bc12d891be","block_type":"box","text":"consideration of each company’s unique circumstances, as well as input from active investors. BAIS is","page_number":266,"box":{"x":116,"y":208,"width":765,"height":12}},{"id":"dc2f0b90-9d75-48d9-9023-99e941868dfe","block_type":"box","text":"independent from BlackRock Investment Stewardship in our engagement and voting activities,","page_number":266,"box":{"x":117,"y":223,"width":704,"height":12}},{"id":"bc886473-464e-40db-b71e-b6d01106abbb","block_type":"box","text":"reporting lines, and oversight.","page_number":266,"box":{"x":117,"y":239,"width":224,"height":12}},{"id":"c1bba14d-de6b-496e-97ee-8f290e62fa14","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders","page_number":266,"box":{"x":116,"y":268,"width":765,"height":12}},{"id":"73ea3692-d4a1-4cad-89ff-3d635942181c","block_type":"box","text":"in BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s","page_number":266,"box":{"x":117,"y":283,"width":742,"height":12}},{"id":"2c21bf20-2d4c-48fd-b1db-64c2ec381753","block_type":"box","text":"approach to investment stewardship on non-index equity investment strategies. The Group may advise","page_number":266,"box":{"x":116,"y":299,"width":769,"height":12}},{"id":"e5771f9d-a56d-444e-9bcd-68975de3be01","block_type":"box","text":"on and review amendments to BAIS’ policies and practices. It does not determine voting decisions,","page_number":266,"box":{"x":116,"y":314,"width":739,"height":12}},{"id":"9294381a-f0b0-4127-b686-a05401a0355c","block_type":"box","text":"which are the responsibility of BAIS and the relevant active equity investors.","page_number":266,"box":{"x":116,"y":330,"width":568,"height":12}},{"id":"b0c28d45-7e7e-410d-8f4a-466ffbd82d0f","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues,","page_number":266,"box":{"x":117,"y":359,"width":721,"height":12}},{"id":"47140818-1c7d-43c2-a6bc-04410ceb170f","block_type":"box","text":"executes proxy votes, and conducts vote operations (including maintaining records of votes cast) in a","page_number":266,"box":{"x":116,"y":375,"width":757,"height":12}},{"id":"057e3672-1c7e-4364-abb8-fe9f63f540fb","block_type":"box","text":"manner consistent with the Guidelines. BAIS also conducts research on corporate governance issues","page_number":266,"box":{"x":117,"y":390,"width":757,"height":12}},{"id":"34c1ade6-abbd-418c-af92-f6ea0dfacb16","block_type":"box","text":"and participates in industry discussions to contribute to and keep abreast of important developments in","page_number":266,"box":{"x":116,"y":406,"width":768,"height":12}},{"id":"ded7c826-ccc2-49b0-9563-55b8e2e45ad6","block_type":"box","text":"the corporate governance field. BAIS may use third parties for certain of the foregoing activities and","page_number":266,"box":{"x":116,"y":421,"width":744,"height":12}},{"id":"64656ca7-bb75-4e7f-beea-795fc82c22a4","block_type":"box","text":"performs oversight of those third parties (see “Use and oversight of third-party vote services providers”","page_number":266,"box":{"x":117,"y":437,"width":765,"height":12}},{"id":"5cf46e64-ee04-4ef9-b4ca-7784ef8e3ab6","block_type":"box","text":"below).","page_number":266,"box":{"x":117,"y":452,"width":58,"height":12}},{"id":"1626c75a-7432-455e-b809-051ecfc97a6c","block_type":"box","text":"Voting guidelines and vote execution","page_number":266,"box":{"x":116,"y":482,"width":302,"height":11}},{"id":"4db33a4f-fe48-42a7-b693-147f4aa801ff","block_type":"box","text":"BlackRock votes on proxy issues when our clients authorize us to do so. We carefully consider the","page_number":266,"box":{"x":117,"y":511,"width":735,"height":12}},{"id":"06476d14-7fc3-41ec-ac44-88e214b053f3","block_type":"box","text":"voting items submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have","page_number":266,"box":{"x":116,"y":526,"width":728,"height":12}},{"id":"bf75cf14-1984-454e-beca-d6cb392772e1","block_type":"box","text":"voting authority. BlackRock votes (or refrains from voting) for each Fund for which we have voting","page_number":266,"box":{"x":116,"y":542,"width":730,"height":12}},{"id":"60a36fec-583e-4934-906a-bfcbe2b0ac9c","block_type":"box","text":"authority based on our evaluation of the alignment of the voting items with the long-term economic","page_number":266,"box":{"x":116,"y":557,"width":734,"height":12}},{"id":"12b98596-e17c-46fb-ae47-e6c7e9008520","block_type":"box","text":"interests of our clients, in the exercise of our independent business judgment, and without regard to the","page_number":266,"box":{"x":117,"y":573,"width":771,"height":12}},{"id":"93975c41-140b-45b6-9f81-88fdc094d388","block_type":"box","text":"relationship of the issuer (or any shareholder proponent or dissident shareholder) to the Fund, the","page_number":266,"box":{"x":117,"y":588,"width":730,"height":12}},{"id":"b6ce29df-8df1-430b-917b-e8330b36b882","block_type":"box","text":"Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":266,"box":{"x":117,"y":604,"width":754,"height":12}},{"id":"8886f6f8-5408-4787-93ca-315b094b3254","block_type":"box","text":"management policies and procedures,” below).","page_number":266,"box":{"x":117,"y":619,"width":353,"height":12}},{"id":"21bbe205-c40a-49f7-9a4e-cc0a3d3ff51a","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the","page_number":266,"box":{"x":116,"y":648,"width":759,"height":13}},{"id":"8d624072-716b-49f5-9c46-b58354ebd07b","block_type":"box","text":"Guidelines, although portfolio managers have the right to vote differently on their holdings if they","page_number":266,"box":{"x":117,"y":664,"width":713,"height":12}},{"id":"32539919-534e-470f-bfe2-1964681332c7","block_type":"box","text":"determine doing so is more aligned with the investment objective and financial interests of clients","page_number":266,"box":{"x":116,"y":679,"width":719,"height":13}},{"id":"6d09d065-9dbe-4144-8697-c7b41e417b97","block_type":"box","text":"invested in the funds they manage.","page_number":266,"box":{"x":117,"y":695,"width":258,"height":12}},{"id":"15f8fd11-7c49-4883-918d-7009f12dad08","block_type":"box","text":"The Guidelines are not intended to be exhaustive. BAIS applies the Guidelines on a case-by-case","page_number":266,"box":{"x":116,"y":724,"width":726,"height":12}},{"id":"0423b6fe-0bce-482d-b278-4fec80c922b2","block_type":"box","text":"basis, in the context of the individual circumstances of each company and the specific issue under","page_number":266,"box":{"x":117,"y":740,"width":728,"height":12}},{"id":"77c9107e-5f8e-46e0-b234-14d4fb674fec","block_type":"box","text":"review. As such, the Guidelines do not indicate how BAIS will vote in every instance. Rather, they","page_number":266,"box":{"x":117,"y":755,"width":723,"height":12}},{"id":"48367023-a41e-45df-ac6c-ed4318b2d8bf","block_type":"box","text":"reflect our view about corporate governance issues generally, and provide insight into how we typically","page_number":266,"box":{"x":117,"y":771,"width":761,"height":12}},{"id":"217936f6-24db-496a-9c9a-13acd381dac7","block_type":"box","text":"approach issues that are commonly put to a shareholder vote. The Guidelines are reviewed annually","page_number":266,"box":{"x":116,"y":786,"width":747,"height":12}},{"id":"f08d0726-2af2-4b7a-9d05-b5b7d43222f2","block_type":"box","text":"and updated as necessary to reflect changes in market practices, developments in corporate","page_number":266,"box":{"x":116,"y":802,"width":688,"height":12}},{"id":"3c916c7b-37dd-4518-8f76-0eb33cec8b5f","block_type":"box","text":"governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":266,"box":{"x":116,"y":817,"width":760,"height":12}},{"id":"4c98d4bf-2a4d-4074-a047-f39a69007ab5","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":266,"box":{"x":116,"y":833,"width":751,"height":12}},{"id":"c8b0acdf-80a5-4dbb-8df4-74d53fc91876","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such","page_number":266,"box":{"x":117,"y":862,"width":740,"height":12}},{"id":"f4386952-8e82-4bd5-83ca-1937ba3d78a0","block_type":"box","text":"proxies, as well as the desirability of voting such proxies. These issues include, but are not limited to: i)","page_number":266,"box":{"x":117,"y":877,"width":768,"height":13}},{"id":"7750c02b-e39b-41f0-a726-38df1af56555","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":266,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"eb300ef9-6371-445f-8f8a-ad435c188f69","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":266,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"1d86442f-175b-4bab-88f3-3c75f6d72d47","block_type":"box","text":"17","page_number":266,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"b2fef8cb-efe3-46dd-97b0-a84a646f7cbd","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":266,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0b5e8ad4-0a1a-4eba-ba72-527837206ccf","block_type":"box","text":"untimely notice of shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii)","page_number":267,"box":{"x":117,"y":87,"width":735,"height":12}},{"id":"0e5a6db8-5460-407b-9691-4c57fd259b48","block_type":"box","text":"requirements to vote proxies in person; iv) “share-blocking” (requirements that investors who exercise","page_number":267,"box":{"x":117,"y":102,"width":759,"height":13}},{"id":"52c399e3-5557-4cac-9475-1bfd674efa8e","block_type":"box","text":"their voting rights surrender the right to dispose of their holdings from the point at which votes are","page_number":267,"box":{"x":116,"y":118,"width":728,"height":12}},{"id":"bc671dc5-603b-4c59-9cbe-385856ba171f","block_type":"box","text":"submitted until after the shareholder meeting has occurred); v) potential difficulties in translating the","page_number":267,"box":{"x":116,"y":134,"width":744,"height":12}},{"id":"c8f78e39-6c43-42d7-9ff6-dba3a72f427e","block_type":"box","text":"proxy; vi) regulatory constraints; and vii) requirements to provide local agents with powers of attorney","page_number":267,"box":{"x":117,"y":149,"width":755,"height":12}},{"id":"f0a90286-bd0c-463b-bc54-f7deb4a88aee","block_type":"box","text":"to facilitate voting instructions. We are not supportive of impediments to the exercise of voting rights","page_number":267,"box":{"x":116,"y":165,"width":746,"height":12}},{"id":"d0e8b4c2-2e28-4d52-b82a-3df6d8630257","block_type":"box","text":"such as share-blocking or overly burdensome administrative requirements.","page_number":267,"box":{"x":116,"y":180,"width":560,"height":12}},{"id":"edeead91-fc87-47eb-b7be-5322c700c1a6","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine","page_number":267,"box":{"x":117,"y":211,"width":759,"height":12}},{"id":"680a5ce5-d0e7-4bdb-8858-f699c3a3f9d8","block_type":"box","text":"that it is generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full","page_number":267,"box":{"x":116,"y":226,"width":723,"height":12}},{"id":"69de1983-3722-45dc-b527-a58bfcc46a99","block_type":"box","text":"allocation) if the costs (including but not limited to opportunity costs associated with share-blocking","page_number":267,"box":{"x":116,"y":242,"width":737,"height":12}},{"id":"0aaf6745-3c93-415a-85d8-d7cb8d257cf3","block_type":"box","text":"constraints) associated with exercising a vote are expected to outweigh the benefit the client would","page_number":267,"box":{"x":116,"y":257,"width":739,"height":12}},{"id":"75b58a31-5f2d-4f2f-a20f-a31c9c1e47db","block_type":"box","text":"derive by voting on the proposal.","page_number":267,"box":{"x":116,"y":273,"width":248,"height":12}},{"id":"4c500343-51ec-4ca1-85fa-4ab96b4d2379","block_type":"box","text":"Voting Choice","page_number":267,"box":{"x":116,"y":303,"width":118,"height":13}},{"id":"099587e3-aa76-4348-b81f-a966d07b4cac","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to","page_number":267,"box":{"x":117,"y":334,"width":733,"height":12}},{"id":"fc81b043-b395-41bc-accd-7869e6d7cfb4","block_type":"box","text":"participate in the proxy voting process where legally and operationally viable.","page_number":267,"box":{"x":117,"y":350,"width":575,"height":12}},{"id":"92ee0234-482d-4680-a2d3-ed739cceba1a","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in","page_number":267,"box":{"x":116,"y":380,"width":748,"height":12}},{"id":"f633f971-0df9-4761-8f46-50e0450aa8ca","block_type":"box","text":"the U.S., UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In","page_number":267,"box":{"x":116,"y":396,"width":716,"height":12}},{"id":"2ff7c1d9-1046-449f-91ba-45de6f1cd2d8","block_type":"box","text":"addition, institutional clients in separately managed accounts (SMAs) are eligible for BlackRock Voting","page_number":267,"box":{"x":116,"y":411,"width":764,"height":12}},{"id":"a12e029a-046c-4299-8ed1-bf72eda09509","block_type":"box","text":"Choice regardless of their investment strategies.","page_number":267,"box":{"x":117,"y":427,"width":357,"height":12}},{"id":"09ad457c-770f-42ae-a3b9-389b383a5bea","block_type":"box","text":"12","page_number":267,"box":{"x":477,"y":427,"width":11,"height":6}},{"id":"be3883f7-eebd-483c-8ef8-4f0e0988421e","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently","page_number":267,"box":{"x":116,"y":457,"width":740,"height":13}},{"id":"ed8ade6f-a3bd-4598-a4e9-a84d356a7733","block_type":"box","text":"depending on whether our clients have authorized BAIS to vote on their behalf, have authorized","page_number":267,"box":{"x":116,"y":473,"width":715,"height":12}},{"id":"9bd58ae7-34be-4e75-bb9d-0e91903c23ce","block_type":"box","text":"BlackRock to vote in accordance with a third-party policy, or have elected to vote shares in accordance","page_number":267,"box":{"x":117,"y":489,"width":769,"height":12}},{"id":"aef0afcd-8629-4d53-ae64-88b51a915add","block_type":"box","text":"with their own policy. Our clients have greater control over proxy voting because of Voting Choice.","page_number":267,"box":{"x":116,"y":504,"width":727,"height":12}},{"id":"eb6d2605-c0c6-4f4d-ae83-fcd1802d06d6","block_type":"box","text":"13","page_number":267,"box":{"x":846,"y":504,"width":10,"height":6}},{"id":"fc44fb03-c260-429e-8d1a-06e728b3ad04","block_type":"box","text":"Use and oversight of third-party vote services providers","page_number":267,"box":{"x":117,"y":535,"width":452,"height":12}},{"id":"f4710677-d135-4d93-adfc-0bbe478d1a67","block_type":"box","text":"Third-party vote services providers – or proxy research firms – provide research and recommendations","page_number":267,"box":{"x":116,"y":565,"width":769,"height":12}},{"id":"2957d08e-7888-4395-8ebf-de9f4f138cf4","block_type":"box","text":"on proxy votes, as well as voting infrastructure. BlackRock contracts primarily with the vote services","page_number":267,"box":{"x":116,"y":581,"width":746,"height":12}},{"id":"27cf7ca3-1eb3-481a-9595-cd36d73d5789","block_type":"box","text":"provider ISS and leverages its online platform to supply research and support voting, record keeping,","page_number":267,"box":{"x":117,"y":596,"width":754,"height":12}},{"id":"0594672d-5bfc-456e-96d5-04c34c879846","block_type":"box","text":"and reporting processes. We also use Glass Lewis’ research and analysis as an input into our voting","page_number":267,"box":{"x":116,"y":612,"width":752,"height":12}},{"id":"8fbd2ab2-dff2-4fea-96a0-5e48196dbefb","block_type":"box","text":"process. It is important to note that, although proxy research firms provide important data and analysis,","page_number":267,"box":{"x":117,"y":627,"width":768,"height":12}},{"id":"3741cc9c-34a0-40c1-9e32-e1c31776fddb","block_type":"box","text":"BAIS does not rely solely on their information or follow their voting recommendations. A company’s","page_number":267,"box":{"x":117,"y":643,"width":738,"height":12}},{"id":"0fb4374a-3929-485d-a478-a9100c9b06ed","block_type":"box","text":"disclosures, our engagements and voting, investment colleagues’ insights and our Guidelines are","page_number":267,"box":{"x":116,"y":658,"width":727,"height":12}},{"id":"cc4c58e1-6aa1-46aa-9504-a74064598a70","block_type":"box","text":"important inputs into our voting decisions on behalf of clients.","page_number":267,"box":{"x":117,"y":674,"width":452,"height":12}},{"id":"63d4bb4f-8088-4bc9-9b4e-4ba795053ba1","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to","page_number":267,"box":{"x":117,"y":705,"width":722,"height":12}},{"id":"e9352d8a-4063-4a7c-8ae5-b96f3eafd9ef","block_type":"box","text":"streamline the voting process by making voting recommendations based on BAIS’ Guidelines when the","page_number":267,"box":{"x":116,"y":720,"width":765,"height":12}},{"id":"357a7e0c-4f0b-4f5a-b302-6e4a7c73d903","block_type":"box","text":"items on a shareholder meeting agenda are routine. Agenda items that are not routine are referred","page_number":267,"box":{"x":117,"y":736,"width":730,"height":12}},{"id":"61d4a5e5-caf5-4e2f-8593-752b89797532","block_type":"box","text":"back to BAIS to assess, escalate as necessary to the relevant portfolio managers and vote. BAIS","page_number":267,"box":{"x":117,"y":751,"width":719,"height":12}},{"id":"40226c62-dd78-4fd9-99e4-97ef7f8112fe","block_type":"box","text":"reviews and can override the recommendations of the vote services provider at any time prior to the","page_number":267,"box":{"x":117,"y":767,"width":739,"height":12}},{"id":"5943c13c-2d43-4ff3-85dd-2e368184c655","block_type":"box","text":"vote deadline. Both BAIS and the vote services provider actively monitor securities filings, research","page_number":267,"box":{"x":116,"y":782,"width":735,"height":12}},{"id":"d4005f16-ac85-47b7-b4b6-9552952c8ce6","block_type":"box","text":"reports, company announcements, and direct communications from companies to ensure awareness","page_number":267,"box":{"x":117,"y":798,"width":748,"height":12}},{"id":"deee5faa-7c44-43c3-8c6c-20f6e751f2d1","block_type":"box","text":"of supplemental disclosures and proxy materials that may require a modification of votes.","page_number":267,"box":{"x":116,"y":813,"width":661,"height":12}},{"id":"15b2eab0-3c3e-4330-82ac-28e8920fab51","block_type":"box","text":"12","page_number":267,"box":{"x":144,"y":838,"width":8,"height":5}},{"id":"92667ef0-e917-4e44-9754-572503f18250","block_type":"box","text":"With Voting Choice, SMAs have the ability to select from a set of voting policies from third-party proxy advisers the","page_number":267,"box":{"x":170,"y":838,"width":679,"height":10}},{"id":"21e418b4-47d4-4438-95e2-f60b1d169c6c","block_type":"box","text":"policy that best aligns with their views and preferences. BlackRock can then use its proxy voting infrastructure to cast","page_number":267,"box":{"x":170,"y":851,"width":695,"height":10}},{"id":"038e5504-bd6c-40e3-a597-f281bc4f3609","block_type":"box","text":"votes based on the client’s selected voting policy.","page_number":267,"box":{"x":170,"y":864,"width":292,"height":10}},{"id":"976f136a-30f0-445a-8075-bb918b3c67f1","block_type":"box","text":"13","page_number":267,"box":{"x":144,"y":880,"width":8,"height":5}},{"id":"bdfc184b-3a94-4c52-8f2d-43a887465e1e","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":267,"box":{"x":171,"y":880,"width":678,"height":9}},{"id":"d187e2cb-cf79-46a3-90c9-16225fc60cd6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":267,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"2e502826-9ae9-49cb-a5d2-b7b9a0dc61f3","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":267,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"2b84fb7b-4f9b-4df1-b437-46a83c6a22c1","block_type":"box","text":"18","page_number":267,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"51692c19-0fd0-4090-b77e-2f3f9f1633e7","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":267,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"72085d69-eaea-499a-a9f2-b39e245b84a6","block_type":"box","text":"BAIS closely monitors the third-party vote services providers we contract with to ensure that they are","page_number":268,"box":{"x":117,"y":87,"width":751,"height":12}},{"id":"ceccf14a-965e-4103-8c15-76aa18043dea","block_type":"box","text":"meeting our service level expectations and have effective policies and procedures in place to manage","page_number":268,"box":{"x":117,"y":102,"width":759,"height":13}},{"id":"39cc1c89-2a68-4997-98ff-03a6d698e1d6","block_type":"box","text":"potential conflicts of interest. Our oversight of service providers includes regular meetings with client","page_number":268,"box":{"x":117,"y":118,"width":747,"height":12}},{"id":"1f59d66b-7bb3-49b1-8ee2-fee3f03de551","block_type":"box","text":"service teams, systematic monitoring of vendor operations, as well as annual due diligence meetings in","page_number":268,"box":{"x":116,"y":134,"width":771,"height":12}},{"id":"9f71f110-0eb4-4d42-abe8-e2b06cfadac0","block_type":"box","text":"accordance with BlackRock’s firmwide policies.","page_number":268,"box":{"x":116,"y":149,"width":355,"height":12}},{"id":"7b42e38f-1198-4ace-8bb8-7856f1e8f1d7","block_type":"box","text":"Conflicts management policies and procedures","page_number":268,"box":{"x":116,"y":179,"width":383,"height":12}},{"id":"d779eca6-be00-4fff-918c-1b2777fd68ab","block_type":"box","text":"BlackRock maintains policies and procedures that seek to prevent undue influence on BAIS’ proxy","page_number":268,"box":{"x":117,"y":209,"width":734,"height":12}},{"id":"11c1b0a3-224f-40b7-b1b2-9d3e2065fb2f","block_type":"box","text":"voting activity. Such influence might stem from any relationship between the investee company (or any","page_number":268,"box":{"x":116,"y":225,"width":767,"height":12}},{"id":"6f2d873d-631f-462d-b9b2-824ae1a8f13e","block_type":"box","text":"shareholder proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a","page_number":268,"box":{"x":116,"y":240,"width":743,"height":12}},{"id":"710d545a-2d73-4a6a-bc91-a79f36434a14","block_type":"box","text":"Fund’s affiliates, or BlackRock employees. 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Within the normal course of business, BAIS may","page_number":268,"box":{"x":149,"y":715,"width":681,"height":12}},{"id":"8fa4b665-b07c-4347-9d32-6334629a9f50","block_type":"box","text":"engage directly with BlackRock clients, business partners and/or third parties, and/or with","page_number":268,"box":{"x":150,"y":730,"width":663,"height":12}},{"id":"350976cc-1064-4b4e-a29b-8fb958462cff","block_type":"box","text":"employees with sales, vendor management, or business partnership roles, in discussions","page_number":268,"box":{"x":150,"y":746,"width":662,"height":12}},{"id":"4e4fc04a-eef5-438b-a33f-57753d5ea0ef","block_type":"box","text":"regarding our approach to stewardship, general corporate governance matters, client reporting","page_number":268,"box":{"x":150,"y":761,"width":701,"height":12}},{"id":"3899fb0f-ba11-4067-9e43-73b094552822","block_type":"box","text":"needs, and/or to otherwise ensure that proxy-related client service levels are met","page_number":268,"box":{"x":150,"y":777,"width":601,"height":12}},{"id":"264cceb8-0ec1-4046-bb7b-adb043dcbe64","block_type":"box","text":"• Determined to engage, in certain instances, an independent third-party voting service provider to","page_number":268,"box":{"x":117,"y":800,"width":749,"height":12}},{"id":"a3a7d8e3-4eb9-4d75-bed2-4d5df1e4354d","block_type":"box","text":"make proxy voting recommendations as a further safeguard to avoid perceived or potential","page_number":268,"box":{"x":150,"y":815,"width":672,"height":12}},{"id":"34e84011-9a55-4ad4-a2e5-89eea3cb8418","block_type":"box","text":"conflicts of interest, to satisfy regulatory requirements, or as may be otherwise required by","page_number":268,"box":{"x":150,"y":830,"width":674,"height":13}},{"id":"eebd265d-d259-4d33-8913-227e7d14a666","block_type":"box","text":"applicable law. 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Our vote decisions are often informed by several factors, including in-depth","page_number":277,"box":{"x":117,"y":444,"width":706,"height":12}},{"id":"32b1be20-cd6c-4a0b-86fd-f718f294b8fa","block_type":"box","text":"analysis of company disclosures, comparisons against industry peers, third-party research, and, where","page_number":277,"box":{"x":116,"y":459,"width":768,"height":12}},{"id":"85b09c9b-f686-4504-95b3-cc823811033d","block_type":"box","text":"appropriate, engagement with companies.","page_number":277,"box":{"x":116,"y":475,"width":318,"height":12}},{"id":"3b89ac91-8c1f-4381-9265-b449611ea65a","block_type":"box","text":"Generally, BIS supports the vote recommendations of the board of directors and management at","page_number":277,"box":{"x":117,"y":506,"width":721,"height":12}},{"id":"c9e24b15-0487-40f4-9694-d230de9f2a18","block_type":"box","text":"companies which have sound corporate governance and deliver strong financial returns over time.","page_number":277,"box":{"x":116,"y":521,"width":734,"height":12}},{"id":"40b56827-6106-4570-af6b-ff04dc80c1ed","block_type":"box","text":"When we determine it is in our clients’ financial interests to convey concern to companies through","page_number":277,"box":{"x":116,"y":537,"width":729,"height":12}},{"id":"34faae82-8041-48c7-8346-454029397093","block_type":"box","text":"voting, we may do so in two forms: we might not support the election of directors or other management","page_number":277,"box":{"x":116,"y":552,"width":768,"height":12}},{"id":"8543b21d-5bfe-41da-a7b4-6b1ee5af5c9f","block_type":"box","text":"proposals, or we might not support management’s voting recommendation on a shareholder proposal.","page_number":277,"box":{"x":117,"y":568,"width":761,"height":12}},{"id":"4a7d95e8-d477-470e-a7d6-d92d49471738","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":277,"box":{"x":401,"y":606,"width":202,"height":10}},{"id":"f18dd0cd-a581-4d4b-b48a-84506101d4c9","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by certain rights","page_number":277,"box":{"x":117,"y":637,"width":762,"height":12}},{"id":"82bba17b-58b6-4f62-a906-b2d95c8c2b28","block_type":"box","text":"attached to shareholding in most markets, as established by corporate laws, regulations, and listing","page_number":277,"box":{"x":116,"y":653,"width":743,"height":12}},{"id":"d6b10c5b-96ea-4791-9ef4-3be994122260","block_type":"box","text":"rules.","page_number":277,"box":{"x":117,"y":669,"width":38,"height":9}},{"id":"93e0698d-c99e-4694-a724-f037342df470","block_type":"box","text":"3","page_number":277,"box":{"x":157,"y":669,"width":5,"height":6}},{"id":"af8b02d6-6f8e-4222-ba62-4b09affda23d","block_type":"box","text":"For example, in most markets, shareholders have the right to:","page_number":277,"box":{"x":169,"y":669,"width":456,"height":11}},{"id":"c6f59cdc-9b47-4e4b-aa22-b3cfede81e09","block_type":"box","text":"• Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend","page_number":277,"box":{"x":117,"y":699,"width":763,"height":12}},{"id":"97e2618f-3731-4c85-8847-43887451abcd","block_type":"box","text":"the corporate charter or bylaws.","page_number":277,"box":{"x":150,"y":715,"width":235,"height":12}},{"id":"ebbdf9e6-2d55-445f-aafc-174db332fb71","block_type":"box","text":"• Vote on key board decisions that are material to the protection of their investment, including but","page_number":277,"box":{"x":117,"y":738,"width":742,"height":12}},{"id":"d5011f24-6b2e-4d26-8551-fe2e01ffaf2f","block_type":"box","text":"not limited to, changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":277,"box":{"x":150,"y":754,"width":688,"height":12}},{"id":"c516d503-0f3a-4f37-b955-77aff82bb52a","block_type":"box","text":"• Access sufficient and timely information on governance, strategic, and business matters – where","page_number":277,"box":{"x":117,"y":777,"width":750,"height":12}},{"id":"8971f6c3-3005-4e44-99f9-c2a26615bbea","block_type":"box","text":"such matters are material – to make informed decisions.","page_number":277,"box":{"x":150,"y":792,"width":416,"height":10}},{"id":"5796b4cc-5f91-497d-b1f6-73596ca8e3bc","block_type":"box","text":"3","page_number":277,"box":{"x":143,"y":854,"width":4,"height":5}},{"id":"15183c97-8eff-4420-834a-e96a4d52b1ec","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":277,"box":{"x":171,"y":854,"width":682,"height":9}},{"id":"d7d84e02-ceab-497a-9bac-dcc2f55be45a","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":277,"box":{"x":170,"y":867,"width":651,"height":9}},{"id":"bef0592e-f4e4-40eb-bfa2-970e940f8609","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":277,"box":{"x":170,"y":880,"width":538,"height":9}},{"id":"2a2c9d25-3375-45d6-90f8-67f78dd958e6","block_type":"box","text":"BlackRock Investment Stewardship","page_number":277,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"84f91c64-411f-4ba2-ab30-926597d05632","block_type":"box","text":"Global Principles |","page_number":277,"box":{"x":731,"y":909,"width":132,"height":12}},{"id":"d8809bfa-04b1-4a46-acf6-6afa63647751","block_type":"box","text":"4","page_number":277,"box":{"x":874,"y":909,"width":9,"height":9}},{"id":"85d1dba7-21e9-4638-a6aa-d37c759d1a0c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":277,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"70231826-afcf-417f-bd9e-4d2f8768b023","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":278,"box":{"x":387,"y":87,"width":231,"height":10}},{"id":"b802be85-b570-4c6d-b5db-8bde85ce0044","block_type":"box","text":"In our experience, there are certain globally applicable elements of corporate governance that","page_number":278,"box":{"x":117,"y":118,"width":700,"height":12}},{"id":"2db56624-b903-4660-bbf0-ab974eae358e","block_type":"box","text":"contribute to a company’s ability to create long-term financial value for shareholders. These are topics","page_number":278,"box":{"x":116,"y":134,"width":761,"height":12}},{"id":"125a689a-6b17-41a9-b101-c86dbc871a9b","block_type":"box","text":"that shareholders may have the ability to vote on at shareholder meetings. These areas include:","page_number":278,"box":{"x":116,"y":149,"width":717,"height":12}},{"id":"48977454-d11d-4eaf-9153-c1ad7c1b05da","block_type":"box","text":"• Boards and directors","page_number":278,"box":{"x":117,"y":180,"width":192,"height":10}},{"id":"f03a52fa-30d0-492a-a43f-2505796a6c13","block_type":"box","text":"• Auditors and audit-related issues","page_number":278,"box":{"x":117,"y":203,"width":282,"height":10}},{"id":"c8ed074b-cb57-43c5-94e0-a56becd8e7dd","block_type":"box","text":"• Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":278,"box":{"x":117,"y":227,"width":635,"height":12}},{"id":"d6a1f61c-ca1c-4596-8a43-54ae7eeca63b","block_type":"box","text":"• Executive compensation","page_number":278,"box":{"x":117,"y":250,"width":219,"height":12}},{"id":"020a9711-253a-4fcb-ae15-06154b82514f","block_type":"box","text":"• Shareholder protections and other significant corporate governance matters","page_number":278,"box":{"x":117,"y":273,"width":600,"height":12}},{"id":"e37a928a-f673-409d-928c-44510b7fa4f2","block_type":"box","text":"• Shareholder proposals","page_number":278,"box":{"x":117,"y":296,"width":206,"height":12}},{"id":"899fedf8-c159-4865-b2fb-b58129315041","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking","page_number":278,"box":{"x":116,"y":327,"width":744,"height":12}},{"id":"13f4456a-89b5-4865-aa81-44aa9ece0550","block_type":"box","text":"into consideration a number of company-specific factors, including the sector, market, and business","page_number":278,"box":{"x":117,"y":343,"width":744,"height":12}},{"id":"5f1536f7-7c49-4721-afec-d42739d02940","block_type":"box","text":"environment within which companies operate.","page_number":278,"box":{"x":116,"y":358,"width":345,"height":12}},{"id":"40902337-3461-4c29-a9cb-0a1a09d27236","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance","page_number":278,"box":{"x":116,"y":389,"width":761,"height":12}},{"id":"fc0e3be6-32f1-4bf7-87e4-ddac3a7e91de","block_type":"box","text":"standards in their domestic market at a minimum, and we ask that, if they do not, they explain how","page_number":278,"box":{"x":116,"y":405,"width":736,"height":12}},{"id":"e37e44da-881d-46c0-8881-dc10afe176a9","block_type":"box","text":"their approach better supports durable, long-term financial value creation. Our regional voting","page_number":278,"box":{"x":116,"y":420,"width":698,"height":12}},{"id":"415511e2-7988-4381-a26c-d2fbd8bcf577","block_type":"box","text":"guidelines explain how the BIS Global Principles inform our voting decisions in relation to common","page_number":278,"box":{"x":116,"y":436,"width":735,"height":12}},{"id":"fdfcfb9a-b23a-4635-8678-fed953a7bc06","block_type":"box","text":"ballot items for shareholder meetings in those markets.","page_number":278,"box":{"x":117,"y":451,"width":406,"height":12}},{"id":"6edb1a65-9ce5-44ec-b572-f25aa8941cca","block_type":"box","text":"4","page_number":278,"box":{"x":525,"y":451,"width":5,"height":7}},{"id":"48a8dadb-1da6-4149-b4b0-41d67439d411","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":278,"box":{"x":392,"y":490,"width":221,"height":10}},{"id":"29a81643-01f5-4af1-8a68-393c16628e3b","block_type":"box","text":"Oversight role of the board","page_number":278,"box":{"x":116,"y":521,"width":221,"height":12}},{"id":"4d333638-2f4c-46e3-81c9-568ad48f5fa1","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with","page_number":278,"box":{"x":117,"y":552,"width":676,"height":12}},{"id":"11ef21c0-b977-420a-a0b6-de3c686aa302","block_type":"box","text":"professional characteristics relevant to a company’s business enhance the board’s ability to add long","page_number":278,"box":{"x":117,"y":568,"width":753,"height":12}},{"id":"06aed84c-06b4-48f6-900b-9d7eea3a2f83","block_type":"box","text":"term financial value and serve as the voice of shareholders in board discussions. In our view, a strong","page_number":278,"box":{"x":116,"y":583,"width":761,"height":12}},{"id":"64d301a9-2dd7-4ac3-8d12-f945545725ee","block_type":"box","text":"board gives a company a competitive advantage, providing valuable oversight and contributing to the","page_number":278,"box":{"x":117,"y":599,"width":754,"height":12}},{"id":"1d2a7d74-f472-4274-988f-342187e57878","block_type":"box","text":"most important management decisions that support long-term financial performance.","page_number":278,"box":{"x":117,"y":614,"width":632,"height":12}},{"id":"e8ddb343-ef95-463d-b0f5-dd32e3c8fdb8","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors.","page_number":278,"box":{"x":117,"y":645,"width":768,"height":12}},{"id":"843c00a2-34a7-42ee-9341-1b3297aaf74a","block_type":"box","text":"We engage, as necessary, with members of the board’s nominating and/or governance committee to","page_number":278,"box":{"x":116,"y":661,"width":748,"height":12}},{"id":"48f772fc-af83-4b73-b79c-e33cae59fe2d","block_type":"box","text":"assess whether governance practices and board composition are effective given a company’s","page_number":278,"box":{"x":116,"y":676,"width":696,"height":12}},{"id":"0b1b13a7-5d5a-451f-b23e-164550720b02","block_type":"box","text":"business model, sector, market, and the business environment in which a company is operating.","page_number":278,"box":{"x":117,"y":692,"width":713,"height":12}},{"id":"be85d22b-31d3-44f4-b515-c0599c26f931","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and","page_number":278,"box":{"x":116,"y":723,"width":730,"height":12}},{"id":"55b81ad6-f357-467f-878b-5eb6b6b63758","block_type":"box","text":"effective governance mechanisms that supports its oversight of the company’s strategy and","page_number":278,"box":{"x":116,"y":738,"width":679,"height":12}},{"id":"1b505cb4-61da-4ffc-ba7a-87643f01e5b5","block_type":"box","text":"operations, consistent with the long-term financial interests of investors. This includes having clear","page_number":278,"box":{"x":116,"y":754,"width":731,"height":12}},{"id":"30c712e1-7431-44ab-848d-66c757a33b43","block_type":"box","text":"descriptions of the role of the board and the committees of the board and how directors engage with","page_number":278,"box":{"x":116,"y":769,"width":742,"height":12}},{"id":"ac0c16ea-7997-4bef-ab0c-7c5c2d88ad98","block_type":"box","text":"and oversee management, as well as disclosure of material risks that may affect a company’s long","page_number":278,"box":{"x":116,"y":785,"width":738,"height":12}},{"id":"54bd35d0-02f1-4cca-b4f3-2d80e8b6f13a","block_type":"box","text":"term strategy and how management is effectively identifying, managing, and mitigating such risks.","page_number":278,"box":{"x":116,"y":800,"width":726,"height":12}},{"id":"5e1a6481-1903-4048-8e4a-8156b86c8dc1","block_type":"box","text":"4","page_number":278,"box":{"x":143,"y":841,"width":4,"height":5}},{"id":"dae93a91-d75e-49e8-b0a8-1bd250d4a97f","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market, generally","page_number":278,"box":{"x":170,"y":841,"width":702,"height":9}},{"id":"3067ef95-bd17-4d7c-bfb7-c00128cb7acb","block_type":"box","text":"accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives, amongst other","page_number":278,"box":{"x":170,"y":854,"width":712,"height":9}},{"id":"e50b21e6-02ad-4f91-9710-6e58999cd265","block_type":"box","text":"factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote operations (including","page_number":278,"box":{"x":170,"y":867,"width":688,"height":9}},{"id":"c911dea1-657f-4d02-b411-b6c73351e470","block_type":"box","text":"maintaining records of votes cast) in a manner consistent with the relevant regional voting guidelines.","page_number":278,"box":{"x":170,"y":880,"width":600,"height":9}},{"id":"05672f09-4875-4bb8-a791-be9e0641f545","block_type":"box","text":"BlackRock Investment Stewardship","page_number":278,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"afeb19a2-6b1c-4417-919b-f657e9e641b1","block_type":"box","text":"Global Principles |","page_number":278,"box":{"x":731,"y":909,"width":132,"height":12}},{"id":"18d6a965-2769-4c28-aa59-548d2a80b4f3","block_type":"box","text":"5","page_number":278,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"63300f8f-0935-40cd-81fc-7077691df637","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":278,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"92af2e08-ebbb-4a77-848c-c0f1e21d5259","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should","page_number":279,"box":{"x":117,"y":87,"width":747,"height":12}},{"id":"a1c76784-8194-4f3b-8627-e433679eff67","block_type":"box","text":"assess its implementation is central to our approach. If any strategic targets are significantly missed or","page_number":279,"box":{"x":116,"y":102,"width":765,"height":13}},{"id":"0a0841e4-54ed-4283-b54f-592e8e9f041f","block_type":"box","text":"materially restated, we find it helpful when company disclosures provide a detailed explanation of the","page_number":279,"box":{"x":117,"y":118,"width":753,"height":12}},{"id":"41d0d77e-7450-4c0f-b618-89c5e9b8d10d","block_type":"box","text":"changes and an indication of the board’s role in reviewing the revised targets. We look to the board to","page_number":279,"box":{"x":116,"y":134,"width":759,"height":12}},{"id":"2bd8b324-e54e-42e2-8a28-78a56be63bb9","block_type":"box","text":"articulate the effectiveness of these mechanisms in overseeing the management of business risks and","page_number":279,"box":{"x":116,"y":149,"width":765,"height":12}},{"id":"375628c8-4f61-4a65-8b5e-1bed05c511cb","block_type":"box","text":"opportunities and the fulfillment of the company’s strategy.","page_number":279,"box":{"x":116,"y":165,"width":439,"height":12}},{"id":"7144a433-7cb3-4fd9-ba32-1b5bef375052","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these","page_number":279,"box":{"x":116,"y":196,"width":727,"height":12}},{"id":"bbaa281d-5d05-4bfc-bfe1-8cde04f890e5","block_type":"box","text":"corporate governance and risk oversight responsibilities, we may consider not supporting the election","page_number":279,"box":{"x":116,"y":211,"width":757,"height":12}},{"id":"5c5d06f1-3ea6-4818-aa71-222bedfd3f4a","block_type":"box","text":"of directors who, in our assessment, have particular responsibility for the issues.","page_number":279,"box":{"x":116,"y":227,"width":601,"height":12}},{"id":"06691874-02e7-4b23-9559-410e0e123817","block_type":"box","text":"When casting vote decisions on behalf of clients on the election of directors, some of the factors that","page_number":279,"box":{"x":116,"y":258,"width":750,"height":12}},{"id":"49d2117d-1f89-4a35-9df8-9857d00984e8","block_type":"box","text":"speak to the board’s effectiveness as a group include the relevance of individual directors’","page_number":279,"box":{"x":116,"y":273,"width":673,"height":12}},{"id":"0c865f8a-6343-466f-9136-72bca7076f9e","block_type":"box","text":"qualifications and skillsets, as well as directors’ capacity and other time commitments, and how these","page_number":279,"box":{"x":116,"y":289,"width":757,"height":12}},{"id":"72d096b4-39db-4fdf-9cf1-581d270d9afe","block_type":"box","text":"factors may contribute to the company’s financial performance. We look to boards to establish formal","page_number":279,"box":{"x":116,"y":304,"width":754,"height":12}},{"id":"0664cc6d-376c-4ff9-ba9b-29defe2a25a5","block_type":"box","text":"and transparent processes for nominating directors that reflect the company’s long-term strategy and","page_number":279,"box":{"x":116,"y":320,"width":754,"height":12}},{"id":"f60053e8-0490-449a-a4c2-46cf036162e0","block_type":"box","text":"business model.","page_number":279,"box":{"x":117,"y":335,"width":125,"height":10}},{"id":"b009eec8-2c42-424a-ac02-6a243c1a5496","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our","page_number":279,"box":{"x":117,"y":366,"width":697,"height":12}},{"id":"c1d81503-86db-4942-8c47-46b06231250e","block_type":"box","text":"approach to board composition and how it underpins board effectiveness and long-term financial value","page_number":279,"box":{"x":116,"y":382,"width":766,"height":12}},{"id":"56b19182-787e-4719-b101-f32fdea09141","block_type":"box","text":"creation.","page_number":279,"box":{"x":116,"y":397,"width":69,"height":10}},{"id":"9b7dc1c8-028f-42a0-bc8f-d251612005d4","block_type":"box","text":"Regular accountability through director elections","page_number":279,"box":{"x":117,"y":428,"width":397,"height":12}},{"id":"bbbcd741-5e6a-447c-88eb-bd2ca084f028","block_type":"box","text":"The election of directors to the board is a right of shareholders and an important signal of support for,","page_number":279,"box":{"x":116,"y":459,"width":756,"height":12}},{"id":"501c5401-3c53-4b24-8675-a39846208be5","block_type":"box","text":"or concern about, the performance of the board in overseeing and advising management. To ensure","page_number":279,"box":{"x":116,"y":475,"width":749,"height":12}},{"id":"c172dfcf-1ee9-4714-8791-40dfbcdfab18","block_type":"box","text":"accountability for their decisions on behalf of shareholders, directors should stand for election on a","page_number":279,"box":{"x":116,"y":490,"width":736,"height":12}},{"id":"172a0468-a5c2-4d5c-9274-39f80573f538","block_type":"box","text":"regular basis, ideally annually.","page_number":279,"box":{"x":117,"y":506,"width":223,"height":12}},{"id":"532d3792-7b9e-4c69-bd82-d9b54153e4f5","block_type":"box","text":"5","page_number":279,"box":{"x":341,"y":506,"width":6,"height":6}},{"id":"4d5ad2ab-3b10-42d7-8136-9cedb4a9b8de","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support","page_number":279,"box":{"x":347,"y":506,"width":517,"height":12}},{"id":"bbff0c4d-e439-4d2b-aefa-016cdc675406","block_type":"box","text":"for, or concerns about, board members’ decisions in a timely manner. When board members are not","page_number":279,"box":{"x":116,"y":521,"width":749,"height":12}},{"id":"85b50f72-de15-4915-8c56-a1e250848ea3","block_type":"box","text":"elected annually, we consider it good practice for boards to have a rotation policy to ensure that,","page_number":279,"box":{"x":116,"y":537,"width":719,"height":12}},{"id":"bb0bb880-9cfb-478e-b34f-30e349487cf2","block_type":"box","text":"through a board cycle, all directors have had their appointment re-confirmed, with a proportion of","page_number":279,"box":{"x":116,"y":552,"width":722,"height":12}},{"id":"a11dd22a-dc21-4148-8bb0-4d5a836275e6","block_type":"box","text":"directors being put forward for election at each shareholder meeting.","page_number":279,"box":{"x":116,"y":568,"width":513,"height":12}},{"id":"f4f182c4-faa8-49de-ab21-ec07835e34d1","block_type":"box","text":"Board quality and effectiveness","page_number":279,"box":{"x":117,"y":599,"width":257,"height":12}},{"id":"7cc6d68c-973a-4d78-89d1-17e888466fba","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way","page_number":279,"box":{"x":117,"y":630,"width":770,"height":12}},{"id":"959b4a27-943a-4832-83f9-03aed0a44938","block_type":"box","text":"to reflect developments in the company’s strategy and the market environment. In our view, it is","page_number":279,"box":{"x":116,"y":645,"width":714,"height":12}},{"id":"6480bed8-e9a7-4cd4-976f-0cf72a076d1d","block_type":"box","text":"beneficial for new directors to be brought onto the board periodically to refresh the group’s thinking,","page_number":279,"box":{"x":117,"y":661,"width":735,"height":12}},{"id":"131aa110-2b93-4623-9399-eedf5b7b7748","block_type":"box","text":"while supporting both continuity and appropriate succession planning. We consider the average overall","page_number":279,"box":{"x":116,"y":676,"width":763,"height":12}},{"id":"48ac52c1-1ee6-44de-b551-106aa097c83a","block_type":"box","text":"tenure of the board and seek a balance between the knowledge and experience of longer-serving","page_number":279,"box":{"x":116,"y":692,"width":723,"height":12}},{"id":"8291fb3b-982b-4d43-a5d5-326c397dc166","block_type":"box","text":"directors and the fresh perspectives of directors who joined more recently.","page_number":279,"box":{"x":116,"y":707,"width":549,"height":12}},{"id":"50107c16-3c03-43b1-a458-0206aa926f16","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election","page_number":279,"box":{"x":116,"y":738,"width":725,"height":12}},{"id":"13573436-f82f-4e7d-a5ea-7c612e785ae8","block_type":"box","text":"contribute to the effectiveness of the board. In our view, the company’s assessment should consider a","page_number":279,"box":{"x":116,"y":754,"width":757,"height":12}},{"id":"2aa8b0f0-ec54-4675-9752-5ed2800735c7","block_type":"box","text":"number of factors, including each director’s independence and time commitments, as well as the","page_number":279,"box":{"x":117,"y":769,"width":715,"height":12}},{"id":"e1260b78-b520-49b5-b2ba-efb75d860075","block_type":"box","text":"breadth and relevance of director experiences and skillsets, and how these collectively contribute to","page_number":279,"box":{"x":117,"y":785,"width":739,"height":12}},{"id":"348913e7-a65e-4704-8b90-d3cfff9a76f2","block_type":"box","text":"the board’s effectiveness in advising and overseeing management in delivering long-term financial","page_number":279,"box":{"x":116,"y":800,"width":728,"height":12}},{"id":"bf76f85d-e8d7-483f-b973-acf197c747e8","block_type":"box","text":"returns.","page_number":279,"box":{"x":117,"y":816,"width":54,"height":9}},{"id":"c8a9854e-5492-4902-9201-82e693d8a57c","block_type":"box","text":"5","page_number":279,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"445aefd6-0035-452b-bea0-8d62448cad3c","block_type":"box","text":"In most markets, directors stand for re-election on an annual or triennial basis, as determined by corporate law, market","page_number":279,"box":{"x":171,"y":867,"width":703,"height":9}},{"id":"2bf64f09-1bda-4f67-9719-bf79321ab055","block_type":"box","text":"regulation or voluntary best practice.","page_number":279,"box":{"x":170,"y":880,"width":215,"height":9}},{"id":"17317331-bf18-47ac-8767-8db19c43a9ce","block_type":"box","text":"BlackRock Investment Stewardship","page_number":279,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"251e37d6-92c2-4f80-9aa2-96358706e16f","block_type":"box","text":"Global Principles |","page_number":279,"box":{"x":731,"y":909,"width":132,"height":12}},{"id":"03b79a30-7263-415f-933c-95a413042ea8","block_type":"box","text":"6","page_number":279,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"292b30d9-306d-4063-84be-6ce5ea65b729","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":279,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a52df6dc-05ea-4f14-a96f-a0d173079c37","block_type":"box","text":"Director independence","page_number":280,"box":{"x":117,"y":87,"width":186,"height":12}},{"id":"46a6fef9-d772-4f2e-bb18-4d46864cd691","block_type":"box","text":"Director independence – from management, significant shareholders, or other related parties – is a","page_number":280,"box":{"x":117,"y":117,"width":738,"height":12}},{"id":"5f541228-725a-42a3-9093-d6703d16edc4","block_type":"box","text":"central tenet of sound corporate governance across markets.","page_number":280,"box":{"x":116,"y":132,"width":452,"height":12}},{"id":"20aa6334-4db1-4e96-b28d-f0b96ee1e700","block_type":"box","text":"6","page_number":280,"box":{"x":570,"y":132,"width":5,"height":6}},{"id":"3b776990-0572-4fe5-97a5-355248a59c63","block_type":"box","text":"We look to boards to have a sufficient","page_number":280,"box":{"x":576,"y":132,"width":290,"height":10}},{"id":"af579278-9c1b-4985-8064-d094000aca16","block_type":"box","text":"number of independent directors, free from conflicts of interest or undue influence, to ensure objectivity","page_number":280,"box":{"x":117,"y":148,"width":768,"height":12}},{"id":"47274021-ef79-430b-aae6-993fa8ca7636","block_type":"box","text":"in the decision-making of the board and its ability to oversee management. We generally consider it","page_number":280,"box":{"x":117,"y":163,"width":742,"height":12}},{"id":"c14c5c23-1bb7-48de-b7c9-4326329f8296","block_type":"box","text":"good practice for independent directors to make a majority of the board, or in the case of controlled","page_number":280,"box":{"x":116,"y":179,"width":740,"height":12}},{"id":"a04d5d37-2fda-417b-9100-de542315083b","block_type":"box","text":"companies, at least one-third.","page_number":280,"box":{"x":116,"y":194,"width":225,"height":12}},{"id":"03556b3f-aa57-416b-b913-db28615323ed","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":280,"box":{"x":117,"y":224,"width":557,"height":12}},{"id":"71df8c90-d019-4f53-abc2-fb974f700d67","block_type":"box","text":"• Current or recent employment at the company or a subsidiary","page_number":280,"box":{"x":117,"y":254,"width":495,"height":12}},{"id":"e93db9bb-c815-4bda-b2b2-9ca85a6214b5","block_type":"box","text":"• Being, or representing, a shareholder with a substantial shareholding in the company","page_number":280,"box":{"x":117,"y":276,"width":668,"height":12}},{"id":"e2666105-099b-4540-ba5c-298a8c0c25ef","block_type":"box","text":"• Interlocking directorates","page_number":280,"box":{"x":117,"y":299,"width":216,"height":12}},{"id":"4299d73e-52a2-49bd-bbaa-66e2f7971dc5","block_type":"box","text":"• Having any other interest, business, or other relationship which could, or could reasonably be","page_number":280,"box":{"x":117,"y":322,"width":730,"height":12}},{"id":"3b7a5a86-ba30-416c-8548-1b6f976b09e8","block_type":"box","text":"perceived to, materially interfere with a director’s ability to act in the best interests of the company","page_number":280,"box":{"x":150,"y":337,"width":729,"height":12}},{"id":"b9f49502-da67-4f42-a2b7-32e663babf59","block_type":"box","text":"and shareholders","page_number":280,"box":{"x":150,"y":353,"width":134,"height":9}},{"id":"92e47235-75ab-4905-a950-7863063eda4d","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a","page_number":280,"box":{"x":117,"y":382,"width":759,"height":12}},{"id":"fe159e5d-b2f1-4c46-9f70-e9c2dab6568d","block_type":"box","text":"senior, independent board leader. This director may chair the board, or, where the chair is also the","page_number":280,"box":{"x":116,"y":398,"width":736,"height":12}},{"id":"98a43df6-4d07-4a7d-b16f-7c4c7cba937d","block_type":"box","text":"CEO (or is otherwise not independent), be designated as a lead independent director. The role of this","page_number":280,"box":{"x":117,"y":413,"width":757,"height":12}},{"id":"7607ceeb-8759-4c1d-a057-c2ccd67cf827","block_type":"box","text":"director is to support independent board members in fulfilling their oversight responsibilities effectively","page_number":280,"box":{"x":116,"y":429,"width":760,"height":12}},{"id":"6437dd12-99f1-4e89-97a1-92722020e888","block_type":"box","text":"by shaping the agenda, ensuring adequate information is provided to the board, and encouraging","page_number":280,"box":{"x":117,"y":444,"width":726,"height":12}},{"id":"83719d05-76f4-489b-9836-a50a96a0aa57","block_type":"box","text":"independent director participation in board deliberations. We appreciate when the lead independent","page_number":280,"box":{"x":117,"y":460,"width":742,"height":12}},{"id":"59baf7c8-534d-45dd-bb88-11e34d60d25a","block_type":"box","text":"director or another appropriate director is available to meet with shareholders to explain and","page_number":280,"box":{"x":116,"y":475,"width":687,"height":12}},{"id":"5f987dd8-3fbe-43c0-9f99-6a79d7e7722c","block_type":"box","text":"contextualize a company’s approach as a situation warrants.","page_number":280,"box":{"x":116,"y":491,"width":454,"height":12}},{"id":"f481c0bc-959c-4ffc-bef4-e914ceec60c1","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or","page_number":280,"box":{"x":117,"y":520,"width":759,"height":13}},{"id":"9d33822a-1561-4e81-a99d-4ecc2b6a7d89","block_type":"box","text":"that require additional focus. It is our view that objective oversight of such matters is best achieved","page_number":280,"box":{"x":116,"y":536,"width":736,"height":12}},{"id":"94d70e93-ce64-4a7a-9e5d-2ee7d5347adf","block_type":"box","text":"when the board forms committees with a majority of independent directors, depending on market","page_number":280,"box":{"x":116,"y":551,"width":723,"height":13}},{"id":"9eadded3-9adb-4957-8313-088f035f53ad","block_type":"box","text":"norms and a company’s ownership structure. In many markets, these committees of the board","page_number":280,"box":{"x":117,"y":567,"width":704,"height":12}},{"id":"146d3664-d5d6-4cd0-95f1-1f039cac695c","block_type":"box","text":"specialize in audit, director nominations, and compensation matters, among others. An ad hoc","page_number":280,"box":{"x":116,"y":583,"width":703,"height":12}},{"id":"5249561f-4e07-47af-b89e-7fe791c08076","block_type":"box","text":"committee might also be formed to decide on a special transaction, particularly one involving a related","page_number":280,"box":{"x":116,"y":598,"width":762,"height":12}},{"id":"4642f2ea-c4df-424f-83e6-fb4ee5e0db61","block_type":"box","text":"party, or to investigate a significant adverse event.","page_number":280,"box":{"x":117,"y":613,"width":378,"height":13}},{"id":"594d1429-7fdc-4190-ba23-e80bae6c9b78","block_type":"box","text":"Sufficient capacity","page_number":280,"box":{"x":116,"y":643,"width":153,"height":12}},{"id":"9eaba043-836c-4d3c-9c7f-7813f2cc7cc7","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to","page_number":280,"box":{"x":116,"y":673,"width":709,"height":12}},{"id":"37f58427-2ef9-45c5-bc38-38bb855f5ee7","block_type":"box","text":"commit an appropriate amount of time to board and committee matters. It is important that directors","page_number":280,"box":{"x":116,"y":688,"width":738,"height":12}},{"id":"4ae51e36-b0e9-43ef-9a67-dc9f062bbb29","block_type":"box","text":"have the capacity to meet all of their responsibilities – including when there are unforeseen events –","page_number":280,"box":{"x":117,"y":704,"width":743,"height":12}},{"id":"ced806ff-ecd7-4231-ba3e-db369fb47d34","block_type":"box","text":"and therefore, we consider it best practice when they don’t take on an excessive number of roles that","page_number":280,"box":{"x":116,"y":719,"width":751,"height":13}},{"id":"e809024e-79db-4137-b8e5-ee01da27cf76","block_type":"box","text":"would impair their ability to fulfill their duties.","page_number":280,"box":{"x":116,"y":735,"width":326,"height":12}},{"id":"891e30e3-e26a-4962-8938-aaef86e3df37","block_type":"box","text":"Board composition","page_number":280,"box":{"x":117,"y":765,"width":151,"height":12}},{"id":"4624c636-506c-4755-9125-7fede07f44d4","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model,","page_number":280,"box":{"x":117,"y":795,"width":708,"height":11}},{"id":"be833077-f168-40a0-bac7-f0dac754772c","block_type":"box","text":"strategy, market capitalization, and ownership structure, as well as the market in which the company","page_number":280,"box":{"x":116,"y":810,"width":745,"height":12}},{"id":"b281a96e-4a5c-4013-8789-956e7951d505","block_type":"box","text":"operates. We find it helpful when companies explain how their approach to board composition supports","page_number":280,"box":{"x":116,"y":825,"width":771,"height":12}},{"id":"20888f17-0c4c-494d-ada4-56a0c24b65fb","block_type":"box","text":"the company’s governance practices.","page_number":280,"box":{"x":116,"y":841,"width":282,"height":12}},{"id":"c5b16394-6841-482f-a879-1a58e819efae","block_type":"box","text":"6","page_number":280,"box":{"x":143,"y":866,"width":4,"height":5}},{"id":"7915f19f-1c82-4c3d-b76c-2e50128996e3","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":280,"box":{"x":171,"y":866,"width":683,"height":10}},{"id":"6af2ad29-28f4-45c5-8419-795795a32c97","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":280,"box":{"x":171,"y":879,"width":587,"height":10}},{"id":"3670eed6-005e-46e0-8813-aa22feb77ccb","block_type":"box","text":"BlackRock Investment Stewardship","page_number":280,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"f91fdae4-d89a-4b47-9bfd-0678145a9a3e","block_type":"box","text":"Global Principles |","page_number":280,"box":{"x":731,"y":909,"width":132,"height":12}},{"id":"f1b87a12-c364-4116-a1b5-e6c172b6b636","block_type":"box","text":"7","page_number":280,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"1f0ee2d2-e69d-4c68-98f9-212f71c87979","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":280,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f8f3aff9-d283-485f-ad7e-be79651dd123","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the","page_number":281,"box":{"x":116,"y":87,"width":760,"height":12}},{"id":"21b9a100-788a-4822-9dc7-19347d53e9ad","block_type":"box","text":"individual candidates so that shareholders can assess the capabilities and suitability of each individual","page_number":281,"box":{"x":117,"y":102,"width":763,"height":13}},{"id":"6f50c449-ecaa-4638-bc97-c746029c8946","block_type":"box","text":"nominee and their fit within overall board composition. These disclosures should explain how the","page_number":281,"box":{"x":117,"y":118,"width":721,"height":12}},{"id":"15a4b3a9-f745-4522-8f21-14d8b243e6cb","block_type":"box","text":"collective experience and expertise of the board, as well as the particular skillsets of individual","page_number":281,"box":{"x":116,"y":134,"width":703,"height":11}},{"id":"7f1e3352-dea2-4f71-b3c1-4da6ca209d0d","block_type":"box","text":"directors, aligns with the company’s long-term strategy. Highly qualified, engaged directors with","page_number":281,"box":{"x":116,"y":149,"width":713,"height":12}},{"id":"8d592ad1-ef64-47a7-98a5-91bf737fc012","block_type":"box","text":"professional characteristics relevant to a company’s business and strategy enhance the ability of the","page_number":281,"box":{"x":117,"y":165,"width":749,"height":12}},{"id":"9d2bd909-cd56-49c9-88fa-fbe6e6f6eb8a","block_type":"box","text":"board to add value and be the voice of shareholders in board discussions.","page_number":281,"box":{"x":117,"y":180,"width":554,"height":10}},{"id":"4167419c-2aed-479f-af2d-84264684688a","block_type":"box","text":"It is in this context that we are interested in a variety of experiences, perspectives, and skillsets in the","page_number":281,"box":{"x":117,"y":208,"width":755,"height":12}},{"id":"23c001ba-032a-4b5b-8b6a-0816e62a1269","block_type":"box","text":"board room. We see it as a means of avoiding “group think” in the board’s exercise of its","page_number":281,"box":{"x":117,"y":224,"width":659,"height":12}},{"id":"561ff699-6619-451b-beef-1f464eac50a6","block_type":"box","text":"responsibilities to advise and oversee management. We note that in many markets, policymakers have","page_number":281,"box":{"x":117,"y":239,"width":768,"height":12}},{"id":"eb1ae933-65b5-49a8-96c2-a0e083ba697e","block_type":"box","text":"set board gender diversity goals which we may discuss with companies, particularly if there is a risk","page_number":281,"box":{"x":116,"y":255,"width":743,"height":12}},{"id":"9fc06066-87dc-4e63-b9fd-ec307cd526eb","block_type":"box","text":"their board composition may be misaligned.","page_number":281,"box":{"x":116,"y":270,"width":329,"height":12}},{"id":"aa5c141e-5587-4212-8aeb-229c27dce83f","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":281,"box":{"x":331,"y":305,"width":341,"height":9}},{"id":"645d5ad0-2369-4753-9099-b2a395e65bb6","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate","page_number":281,"box":{"x":117,"y":333,"width":725,"height":12}},{"id":"d8b97d04-dd18-48a4-b659-51c6f66f75b0","block_type":"box","text":"portrayal of a company’s financial condition. Accordingly, we look for the assumptions made by","page_number":281,"box":{"x":117,"y":349,"width":709,"height":12}},{"id":"6d6bf365-7a77-4da2-90ae-f653b52d56b6","block_type":"box","text":"management, and reviewed by the auditor in preparing the financial statements, to be reasonable and","page_number":281,"box":{"x":117,"y":364,"width":760,"height":12}},{"id":"7f47d054-551e-4308-a6fc-c745a709870c","block_type":"box","text":"justified.","page_number":281,"box":{"x":115,"y":380,"width":67,"height":12}},{"id":"ed92737e-49ab-4ec3-964f-8cb7d25bea6c","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":281,"box":{"x":116,"y":408,"width":754,"height":12}},{"id":"356aa184-eace-4f36-8fdb-dffcc7813c7c","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important","page_number":281,"box":{"x":117,"y":423,"width":746,"height":12}},{"id":"dbfadcbd-e1eb-403c-a9fd-f09b702b7faf","block_type":"box","text":"role in a company’s financial reporting system by providing independent oversight of the accounts,","page_number":281,"box":{"x":117,"y":439,"width":733,"height":12}},{"id":"eabdd308-614d-4478-8ecf-4572b2aa84bb","block_type":"box","text":"material financial, and, where appropriate to the jurisdiction, non-financial information and internal","page_number":281,"box":{"x":117,"y":454,"width":728,"height":12}},{"id":"6c90e5a2-6c6f-4df0-9c82-40bec9466b9a","block_type":"box","text":"control frameworks. Moreover, in the absence of a dedicated risk committee, these committees can","page_number":281,"box":{"x":116,"y":470,"width":743,"height":11}},{"id":"89780e5d-2655-4c55-ba45-ba3bda45ec21","block_type":"box","text":"provide oversight of Enterprise Risk Management systems.","page_number":281,"box":{"x":117,"y":485,"width":437,"height":12}},{"id":"8905f2ba-e49b-4ac2-b73e-8aae19efce0e","block_type":"box","text":"7","page_number":281,"box":{"x":556,"y":486,"width":5,"height":5}},{"id":"9f72c140-153d-4cd6-8e09-4883aef45a00","block_type":"box","text":"In our view, effective audit committee","page_number":281,"box":{"x":562,"y":485,"width":286,"height":12}},{"id":"68b28d3e-3ec6-4cc4-8bf9-ba8aa651d429","block_type":"box","text":"oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":281,"box":{"x":116,"y":501,"width":745,"height":12}},{"id":"f1c96193-22f1-405d-995d-ee169595c1ee","block_type":"box","text":"important level of reassurance to shareholders.","page_number":281,"box":{"x":117,"y":516,"width":354,"height":12}},{"id":"75dc0372-eec8-49ca-8b6e-77080a4a4c35","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":281,"box":{"x":116,"y":545,"width":750,"height":12}},{"id":"f9f89d73-9277-45bb-b239-a26505b53e3f","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership","page_number":281,"box":{"x":117,"y":560,"width":765,"height":12}},{"id":"9b7ac94d-8d74-4478-aeda-915e03893cb5","block_type":"box","text":"and introduce new perspectives. We recognize that audit committees will rely on management, internal","page_number":281,"box":{"x":116,"y":576,"width":769,"height":12}},{"id":"e224c0b1-7a65-4ac0-bbfb-0b8bb1aef130","block_type":"box","text":"audit, and the independent auditor to fulfill their responsibilities. However, we look to committee","page_number":281,"box":{"x":116,"y":591,"width":712,"height":12}},{"id":"c265e291-b208-448d-9fe3-945854dc7672","block_type":"box","text":"members to demonstrate they have relevant expertise to monitor and oversee the audit process and","page_number":281,"box":{"x":117,"y":607,"width":749,"height":12}},{"id":"e2922e72-c0d6-4b41-b273-c5d75b512424","block_type":"box","text":"related activities.","page_number":281,"box":{"x":117,"y":622,"width":129,"height":10}},{"id":"f659d264-71fa-42cd-a8ac-3b571aa6ce15","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant","page_number":281,"box":{"x":116,"y":650,"width":753,"height":12}},{"id":"fd108296-e1d2-4286-9c05-b341ec3e8c1c","block_type":"box","text":"financial restatements, or ad hoc notifications of material financial weakness. In this respect, we look to","page_number":281,"box":{"x":116,"y":666,"width":765,"height":12}},{"id":"53d9f35a-15a1-46ad-9f67-38adaed50703","block_type":"box","text":"audit committees to provide timely disclosure on the remediation of key and critical audit matters","page_number":281,"box":{"x":116,"y":681,"width":715,"height":12}},{"id":"555af881-7c2f-486c-a70e-c3bbc0a65935","block_type":"box","text":"identified either by the external auditor or internal audit function.","page_number":281,"box":{"x":117,"y":697,"width":472,"height":12}},{"id":"3e872081-d6cd-4f19-bd44-d1ecc329f358","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":281,"box":{"x":116,"y":725,"width":748,"height":12}},{"id":"7acbf5c0-c3f0-49bf-8677-f3e951b44428","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is important that","page_number":281,"box":{"x":116,"y":741,"width":750,"height":12}},{"id":"2e5f555f-7f0b-4dac-95a3-9c01921c5e25","block_type":"box","text":"auditors are, and are seen to be, independent. Where an audit firm provides services to the company","page_number":281,"box":{"x":116,"y":756,"width":751,"height":12}},{"id":"8a4c1886-46a4-4f0a-a377-b17afc9a684e","block_type":"box","text":"in addition to the audit, we look for the fees","page_number":281,"box":{"x":117,"y":772,"width":318,"height":11}},{"id":"914759bd-8d9e-4687-b64d-b1365b7a69b1","block_type":"box","text":"earned to be disclosed and explained. We look for audit","page_number":281,"box":{"x":441,"y":772,"width":414,"height":12}},{"id":"48d92596-62bb-416c-ab6d-6b3ad3c2f750","block_type":"box","text":"committees to have in place a procedure for assessing the independence of the auditor and the quality","page_number":281,"box":{"x":116,"y":787,"width":762,"height":12}},{"id":"d1d9618a-4a91-42af-b6e2-c3ae1ea02d80","block_type":"box","text":"of the external audit process on an annual basis.","page_number":281,"box":{"x":116,"y":803,"width":360,"height":12}},{"id":"6d397c96-5b5b-4572-b3d8-29cc60a85042","block_type":"box","text":"7","page_number":281,"box":{"x":143,"y":828,"width":4,"height":5}},{"id":"1feb62c0-83f5-44c1-9930-555c7000a21a","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":281,"box":{"x":171,"y":828,"width":648,"height":9}},{"id":"723c8dea-45b7-4490-9d07-4fd02bbcea40","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the","page_number":281,"box":{"x":170,"y":841,"width":709,"height":9}},{"id":"4e5f0fde-9409-4f83-a2f8-c0095ba32491","block_type":"box","text":"entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement of","page_number":281,"box":{"x":170,"y":854,"width":690,"height":9}},{"id":"cd00d152-9c92-4a56-9b2b-08065133d055","block_type":"box","text":"objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO), “Enterprise","page_number":281,"box":{"x":170,"y":866,"width":710,"height":10}},{"id":"2c8103b0-f739-4a8a-912c-3068fcbd602b","block_type":"box","text":"Risk Management,” 2023, accessed in December 2025.","page_number":281,"box":{"x":171,"y":879,"width":329,"height":10}},{"id":"21ea2455-904f-4b55-9e12-f131d6acd614","block_type":"box","text":"BlackRock Investment Stewardship","page_number":281,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"47bf0454-fecd-4df2-b156-22dcf81e2aee","block_type":"box","text":"Global Principles |","page_number":281,"box":{"x":731,"y":909,"width":132,"height":12}},{"id":"1c17a6d6-9297-435a-b8b6-f30d4d9e5bb6","block_type":"box","text":"8","page_number":281,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"e897f768-f71b-4785-ad0e-d8853560ecc6","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":281,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c428f191-8b6b-44a8-8860-d537ce423f86","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term","page_number":282,"box":{"x":117,"y":87,"width":719,"height":12}},{"id":"a26fc0d7-fed0-4df8-b7db-e200dc81fd30","block_type":"box","text":"operational risk management practices and, more broadly, the quality of the board’s oversight. We look","page_number":282,"box":{"x":116,"y":102,"width":770,"height":13}},{"id":"42a9cde0-720e-4e82-8b51-20367501d5ee","block_type":"box","text":"to the audit or risk committee to periodically review the company’s risk assessment and risk","page_number":282,"box":{"x":116,"y":118,"width":684,"height":12}},{"id":"ab767fca-eedb-47ce-9349-de3fd4820f4b","block_type":"box","text":"management policies and the significant risks and exposures identified by management, the internal","page_number":282,"box":{"x":117,"y":134,"width":747,"height":12}},{"id":"a0a62d48-2d1b-4f66-8230-bb15ebe82d49","block_type":"box","text":"auditors or the independent auditors, and management’s steps to address them. In the absence of","page_number":282,"box":{"x":116,"y":149,"width":735,"height":12}},{"id":"5c281599-3f17-4d8c-ae7e-1f26b3a98fbf","block_type":"box","text":"detailed disclosures, we may conclude that companies are not adequately managing risk.","page_number":282,"box":{"x":116,"y":165,"width":668,"height":12}},{"id":"b1ffd808-9e74-4a40-bd8a-76f19e4d9694","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL","page_number":282,"box":{"x":141,"y":203,"width":723,"height":12}},{"id":"cd28e14b-7b1a-422d-9e96-6e12ba62a39a","block_type":"box","text":"SITUATIONS","page_number":282,"box":{"x":449,"y":219,"width":106,"height":9}},{"id":"523f5f68-82b9-4944-b97c-91ac4e2ed353","block_type":"box","text":"The capital structure of a company is critical to shareholders as it impacts the value of their investment","page_number":282,"box":{"x":116,"y":250,"width":766,"height":12}},{"id":"f705caf9-1624-4638-9d6c-d43090261867","block_type":"box","text":"and the priority of their interest in the company relative to that of other equity or debt investors.","page_number":282,"box":{"x":116,"y":265,"width":707,"height":12}},{"id":"e6614a28-e8d6-406c-af07-ec25d1000a63","block_type":"box","text":"Pre-emptive rights are a key protection for shareholders against the dilution of their interests.","page_number":282,"box":{"x":117,"y":281,"width":693,"height":12}},{"id":"d81963df-31e6-4d60-bd68-7fb848d34dfa","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure","page_number":282,"box":{"x":117,"y":312,"width":746,"height":12}},{"id":"21e4c75d-cc46-4cf7-bbb4-db877bbf5327","block_type":"box","text":"and differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce","page_number":282,"box":{"x":116,"y":327,"width":754,"height":12}},{"id":"01490a1a-714b-4f5d-b43e-c0657683a290","block_type":"box","text":"the adoption of “one share, one vote” for registered shareholders.","page_number":282,"box":{"x":116,"y":343,"width":491,"height":12}},{"id":"6907db12-3c6b-4b1a-a37e-c2e394452d61","block_type":"box","text":"However, we recognize that in certain markets, at least for a period of time, companies may have a","page_number":282,"box":{"x":117,"y":374,"width":740,"height":12}},{"id":"400530eb-8bb0-45bd-bbbd-9780658e8567","block_type":"box","text":"valid reason for listing dual classes of shares with differentiated voting rights. In our view, such","page_number":282,"box":{"x":116,"y":389,"width":706,"height":12}},{"id":"433a94b7-6d80-4296-a5d7-935092ba97e1","block_type":"box","text":"companies should review these share class structures on a regular basis or as company","page_number":282,"box":{"x":116,"y":405,"width":661,"height":12}},{"id":"48f41850-09cb-493e-8f1f-0a61b8b7cd6e","block_type":"box","text":"circumstances change. Additionally, they should seek shareholder approval of their capital structure on","page_number":282,"box":{"x":116,"y":420,"width":769,"height":12}},{"id":"1ee220b8-04c3-4b27-ace4-98a7caba9cfa","block_type":"box","text":"a periodic basis via a management proposal at the company’s shareholder meeting. The proposal","page_number":282,"box":{"x":116,"y":436,"width":731,"height":12}},{"id":"19706d00-5fe0-4ead-a3fb-4c2d772c616a","block_type":"box","text":"should give unaffiliated shareholders the opportunity to affirm the current structure or establish","page_number":282,"box":{"x":116,"y":451,"width":705,"height":12}},{"id":"9a7ffb89-1abf-473a-b50f-3b204df52bc9","block_type":"box","text":"mechanisms to end or phase out controlling structures at the appropriate time, while minimizing costs","page_number":282,"box":{"x":117,"y":467,"width":757,"height":12}},{"id":"fbad2c6a-6a67-494e-919b-c5a856599cfe","block_type":"box","text":"to shareholders.","page_number":282,"box":{"x":116,"y":482,"width":125,"height":10}},{"id":"a4dbd408-7b2d-4c3f-b950-44134b80216e","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long","page_number":282,"box":{"x":117,"y":513,"width":745,"height":12}},{"id":"30f3f785-ec89-4179-b24e-6e4c68b31207","block_type":"box","text":"term financial interests of our clients as shareholders, and so we will review any proposed transaction","page_number":282,"box":{"x":116,"y":529,"width":758,"height":12}},{"id":"d9de789c-569f-41f8-ae17-b0a14dbcf444","block_type":"box","text":"with that objective in mind. Typically, we review factors such as whether the proposed transaction has","page_number":282,"box":{"x":116,"y":544,"width":760,"height":12}},{"id":"83c182aa-4e08-4425-81bc-60b11a6d635d","block_type":"box","text":"the unanimous support of the board and has been negotiated at arm’s length, and whether the board","page_number":282,"box":{"x":116,"y":560,"width":753,"height":12}},{"id":"ac7b0f92-64a4-4d9a-9591-0b174133efa9","block_type":"box","text":"or management has clearly explained its economic and strategic rationale. We may also seek","page_number":282,"box":{"x":116,"y":576,"width":699,"height":11}},{"id":"50830ebf-250e-4df9-8016-57064dc3979d","block_type":"box","text":"reassurance from the board that the financial interests of executives and/or board members in a given","page_number":282,"box":{"x":117,"y":591,"width":761,"height":12}},{"id":"b2e9808d-a64b-4ce3-a5e4-64b9d917bd9a","block_type":"box","text":"transaction have not adversely affected their ability to place shareholders’ interests before their own.","page_number":282,"box":{"x":116,"y":606,"width":750,"height":12}},{"id":"2882d351-af1b-46c3-b368-4ce8fcef4694","block_type":"box","text":"Where the transaction involves related parties, the recommendation to support should come from the","page_number":282,"box":{"x":116,"y":622,"width":755,"height":12}},{"id":"87880420-2a7b-47b7-9fc7-f9b6dc3806a6","block_type":"box","text":"independent directors, a best practice in most markets, and ideally, the terms should have been","page_number":282,"box":{"x":117,"y":638,"width":715,"height":11}},{"id":"a2c4f9f8-7c0d-4766-8e01-e57d2c9cd9a6","block_type":"box","text":"assessed through an independent appraisal process. In addition, it is good practice that it be approved","page_number":282,"box":{"x":116,"y":653,"width":766,"height":12}},{"id":"1fc2f5e8-1486-43a6-b4ff-a158e2462d2b","block_type":"box","text":"by a separate vote of the non-conflicted parties.","page_number":282,"box":{"x":117,"y":668,"width":352,"height":12}},{"id":"d5d5512b-d6c2-4cfb-ad08-2bef3cc0e43e","block_type":"box","text":"As a matter of sound governance practice, shareholders should have a right to dispose of company","page_number":282,"box":{"x":116,"y":699,"width":738,"height":13}},{"id":"98f71cf5-bc9f-4868-8bd8-030e3cc7e279","block_type":"box","text":"shares in the open market without unnecessary restriction. In our view, corporate mechanisms","page_number":282,"box":{"x":116,"y":715,"width":700,"height":12}},{"id":"10da4bc5-9821-4338-ad87-5383708ae969","block_type":"box","text":"designed to limit shareholders’ ability to sell their shares are contrary to basic property rights. Such","page_number":282,"box":{"x":116,"y":730,"width":732,"height":13}},{"id":"e9e28bb2-10af-434a-a9ca-d873bad1a268","block_type":"box","text":"mechanisms can serve to protect and entrench interests other than those of the shareholders. In our","page_number":282,"box":{"x":117,"y":746,"width":745,"height":12}},{"id":"a161de5a-795b-4dc6-85dc-355ab04bd76c","block_type":"box","text":"view, shareholders are broadly capable of making decisions in their own best interests. We encourage","page_number":282,"box":{"x":116,"y":761,"width":759,"height":13}},{"id":"75b575bd-eb13-4bbb-b27a-f989a2f63749","block_type":"box","text":"any shareholder rights plans proposed by a board to be subject to shareholder approval upon","page_number":282,"box":{"x":116,"y":777,"width":693,"height":12}},{"id":"ba339043-1484-4824-afdb-129182aae9c5","block_type":"box","text":"introduction and periodically thereafter.","page_number":282,"box":{"x":117,"y":792,"width":287,"height":13}},{"id":"4ad6e0d0-2bce-4e55-a861-877be5da77a6","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":282,"box":{"x":318,"y":831,"width":369,"height":10}},{"id":"12464e67-737a-40dc-b071-7f7c548c48d3","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value","page_number":282,"box":{"x":117,"y":862,"width":749,"height":12}},{"id":"329f2035-92f8-48d3-84b8-d8c035ccdd34","block_type":"box","text":"creation. A well-structured compensation policy rewards the successful delivery of strategic,","page_number":282,"box":{"x":116,"y":878,"width":686,"height":12}},{"id":"dd77dcb8-59f6-470a-91a3-482025e49d49","block_type":"box","text":"BlackRock Investment Stewardship","page_number":282,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"69e7c77f-b4eb-43c1-a0fb-7f63c9720b5a","block_type":"box","text":"Global Principles |","page_number":282,"box":{"x":731,"y":909,"width":132,"height":12}},{"id":"44279285-88bd-488f-a295-27e14d434d8b","block_type":"box","text":"9","page_number":282,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"e7bd8cf4-f525-4c79-ae51-0f7da77bd4c8","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":282,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"24a18d40-df93-474a-ba59-0cad34a6f1b2","block_type":"box","text":"operational, and/or financial goals; encourages an appropriate risk appetite; and aligns the interests of","page_number":283,"box":{"x":116,"y":87,"width":763,"height":12}},{"id":"11e90353-f5de-4144-b437-1fa9cea7ad0b","block_type":"box","text":"shareholders and executives through equity ownership.","page_number":283,"box":{"x":116,"y":103,"width":410,"height":12}},{"id":"9c191dd0-99e6-4a10-988d-cb2510d2c9c6","block_type":"box","text":"8","page_number":283,"box":{"x":528,"y":103,"width":5,"height":6}},{"id":"c678136d-ae05-4ce9-bb13-a7a68ed2bada","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support","page_number":283,"box":{"x":116,"y":134,"width":751,"height":12}},{"id":"de67f511-3d96-41df-8604-9c6a04452c0e","block_type":"box","text":"sustained financial value creation for our clients as shareholders. We appreciate when performance","page_number":283,"box":{"x":116,"y":149,"width":744,"height":12}},{"id":"0c009114-6463-483f-ae84-e3b53021a29b","block_type":"box","text":"targets incorporate ambitious objectives, and the corresponding metrics are aligned with the","page_number":283,"box":{"x":116,"y":165,"width":687,"height":12}},{"id":"97249bda-3137-4c2e-8ac6-9b4bd10cd9b2","block_type":"box","text":"company’s strategy and business model. BIS does not have a position on whether companies choose","page_number":283,"box":{"x":116,"y":180,"width":760,"height":12}},{"id":"1594cb67-f958-458d-b00b-aa5e57c1066f","block_type":"box","text":"to use sustainability-related criteria in compensation structures, but, where they are included, we look","page_number":283,"box":{"x":116,"y":196,"width":757,"height":12}},{"id":"685a7cd8-604a-4afe-a3e8-3166c3c52077","block_type":"box","text":"to companies to be as rigorous as they would be in setting other financial or operational targets. We","page_number":283,"box":{"x":116,"y":211,"width":745,"height":12}},{"id":"5e0e1bb8-6b55-41fe-965c-868adf5f2c30","block_type":"box","text":"appreciate when long-term incentive plans encompass timeframes that: 1) are distinct from annual","page_number":283,"box":{"x":116,"y":227,"width":735,"height":12}},{"id":"0032c3eb-1b48-41b2-abbb-2f355d4ffe8a","block_type":"box","text":"executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":283,"box":{"x":116,"y":242,"width":724,"height":12}},{"id":"f35ab1e8-f1ae-488d-bb21-546d545f5636","block_type":"box","text":"results over a period of years.","page_number":283,"box":{"x":117,"y":258,"width":225,"height":12}},{"id":"8da9cc81-f371-451d-abe3-907b8fab64bb","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":283,"box":{"x":116,"y":289,"width":757,"height":12}},{"id":"64e6832a-8d3e-4650-a53c-ae5b19c201b7","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may","page_number":283,"box":{"x":116,"y":304,"width":720,"height":12}},{"id":"6133a6f8-cab3-413d-a12b-c731fe6c3284","block_type":"box","text":"include the company’s risk profile, the environment it operates in, and the individuals the board is trying","page_number":283,"box":{"x":117,"y":320,"width":770,"height":12}},{"id":"aa03c9e5-bac4-41a1-a3ce-63ff843a613b","block_type":"box","text":"to attract and retain. We look to the compensation committees to guard against contractual","page_number":283,"box":{"x":116,"y":335,"width":679,"height":12}},{"id":"0746ec47-e11d-424a-8f97-5a0e6db7e8cd","block_type":"box","text":"arrangements that would entitle executives to material compensation for early termination of their","page_number":283,"box":{"x":116,"y":351,"width":726,"height":12}},{"id":"fa1221d2-3e99-48fe-8474-381a9209617f","block_type":"box","text":"employment. Finally, we look for pension contributions and other deferred compensation arrangements","page_number":283,"box":{"x":116,"y":366,"width":770,"height":12}},{"id":"bb7a2b49-b657-4313-976b-d9943e81058c","block_type":"box","text":"to be reasonable in light of market practices or the company’s business and executive compensation","page_number":283,"box":{"x":116,"y":382,"width":752,"height":12}},{"id":"4df9389f-f456-4830-a4fb-da38313f2758","block_type":"box","text":"strategies.","page_number":283,"box":{"x":116,"y":397,"width":82,"height":12}},{"id":"f14412aa-7615-4890-aeec-ea3b5e33766a","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance.","page_number":283,"box":{"x":116,"y":428,"width":755,"height":12}},{"id":"67d2ab68-7c4d-4379-a373-efa1458fa2d8","block_type":"box","text":"Where discretion has been used by the compensation committee, or its equivalent, we appreciate","page_number":283,"box":{"x":116,"y":444,"width":730,"height":12}},{"id":"694b3219-b0ec-4f79-8818-3d073c014b07","block_type":"box","text":"disclosure relating to how and why the discretion was used, and how the adjusted outcome is aligned","page_number":283,"box":{"x":116,"y":459,"width":757,"height":12}},{"id":"2aed24b5-788d-4e6b-920d-3428fe81fbff","block_type":"box","text":"with the interests of shareholders. In addition, we acknowledge that the use of peer group evaluation","page_number":283,"box":{"x":116,"y":475,"width":751,"height":12}},{"id":"c66d27bf-4675-4b27-a551-b9dce7c42f7c","block_type":"box","text":"by compensation committees can help ensure competitive pay. However, we encourage companies to","page_number":283,"box":{"x":117,"y":490,"width":763,"height":12}},{"id":"0dd76cd4-eec6-422c-a277-335595de44b6","block_type":"box","text":"clearly explain how compensation outcomes have rewarded performance rather than solely base","page_number":283,"box":{"x":116,"y":506,"width":724,"height":12}},{"id":"23702a55-c160-472c-88c0-879795b22791","block_type":"box","text":"increases in total compensation on peer benchmarking.","page_number":283,"box":{"x":117,"y":521,"width":416,"height":12}},{"id":"8bf0e9ba-6d64-450b-806c-f82cdabf7612","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such","page_number":283,"box":{"x":116,"y":552,"width":755,"height":12}},{"id":"556649f9-b3e0-4b13-b7c2-9bb5d428cac2","block_type":"box","text":"provisions could require executives to forgo awards when compensation was based on faulty financial","page_number":283,"box":{"x":117,"y":568,"width":760,"height":12}},{"id":"da4fe38b-da3e-40df-9cf4-311860f45f2f","block_type":"box","text":"statements or deceptive business practices, or when their behavior caused material financial harm to","page_number":283,"box":{"x":116,"y":583,"width":754,"height":12}},{"id":"8ae87d07-c34c-4c84-adce-b11d97779164","block_type":"box","text":"shareholders, material reputational risk to the company, or resulted in a criminal investigation.","page_number":283,"box":{"x":116,"y":599,"width":701,"height":12}},{"id":"66f679d0-372b-4dbf-9796-8bc04ecac91d","block_type":"box","text":"In our view, non-executive directors should be compensated in a manner that is commensurate with","page_number":283,"box":{"x":117,"y":630,"width":745,"height":12}},{"id":"70290982-7c80-4bfb-88a7-151a0d332632","block_type":"box","text":"the time and effort expended in fulfilling their professional responsibilities. Additionally, these","page_number":283,"box":{"x":116,"y":645,"width":691,"height":12}},{"id":"c801d95b-77d7-47af-94a7-1c9572344aca","block_type":"box","text":"compensation arrangements should not risk compromising directors’ independence or aligning their","page_number":283,"box":{"x":116,"y":661,"width":739,"height":12}},{"id":"a73f838e-5a36-497c-9d99-8673390cb324","block_type":"box","text":"interests too closely with those of the management, whom they are charged with overseeing.","page_number":283,"box":{"x":117,"y":676,"width":687,"height":12}},{"id":"5ad9352d-1f46-47d4-8166-7d2142d89ec2","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether","page_number":283,"box":{"x":116,"y":707,"width":750,"height":12}},{"id":"b3b35612-6843-4e4d-ba47-091ef8682206","block_type":"box","text":"the board’s approach to executive compensation is rigorous in light of the company’s stated long-term","page_number":283,"box":{"x":116,"y":723,"width":755,"height":12}},{"id":"012d5959-25a0-4316-ad20-f804d12cd32c","block_type":"box","text":"corporate strategy and specific circumstances, as well as local market and policy developments.","page_number":283,"box":{"x":116,"y":738,"width":713,"height":12}},{"id":"d19726f9-faa4-4695-9e8f-ae8cbd13f26f","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance,","page_number":283,"box":{"x":116,"y":769,"width":739,"height":12}},{"id":"54d738fc-1d07-4be5-ade2-0401a5ddc050","block_type":"box","text":"BIS may not support management’s proposals to approve compensation, where they are on the","page_number":283,"box":{"x":117,"y":785,"width":709,"height":12}},{"id":"53d37644-45d5-4e2f-8e6c-833a39d0c6be","block_type":"box","text":"agenda. We may also not support members of the compensation committee or equivalent board","page_number":283,"box":{"x":116,"y":800,"width":713,"height":12}},{"id":"ac1c94ab-7eb3-4bc7-8072-84440ad0d24b","block_type":"box","text":"members for poor compensation practices or structures.","page_number":283,"box":{"x":117,"y":816,"width":415,"height":12}},{"id":"de3d72c9-640e-4c57-b778-6dbc3362d9b6","block_type":"box","text":"8","page_number":283,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"16173279-4a13-46e6-97dd-9a42dcbd26b5","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":283,"box":{"x":170,"y":867,"width":664,"height":9}},{"id":"883aa6b8-f650-4208-9112-00b3ae76b94e","block_type":"box","text":"different markets.","page_number":283,"box":{"x":170,"y":880,"width":102,"height":7}},{"id":"77601769-8966-4be4-b9a0-491569f17aa9","block_type":"box","text":"BlackRock Investment Stewardship","page_number":283,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"79ba81a6-cb11-4355-a212-4e5b560b9379","block_type":"box","text":"Global Principles |","page_number":283,"box":{"x":722,"y":909,"width":132,"height":12}},{"id":"2095f9e5-5d9e-4db9-9c1b-c2616c9e1a25","block_type":"box","text":"10","page_number":283,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"bd72c403-3dcc-4d84-beb1-35e54eb963c1","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":283,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"de702c0c-2649-43ca-8354-d85739ff40f4","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":284,"box":{"x":158,"y":87,"width":688,"height":10}},{"id":"ed18ed5f-b726-4ee5-86a7-8c64daa56df4","block_type":"box","text":"Corporate form","page_number":284,"box":{"x":116,"y":116,"width":127,"height":12}},{"id":"a527b447-1b45-47b4-8521-f669ec45c4e2","block_type":"box","text":"In our view, it is the responsibility of the board to determine the corporate form that is most appropriate","page_number":284,"box":{"x":117,"y":145,"width":766,"height":12}},{"id":"301c37ff-7374-48ac-bcfc-ac7c9347eee7","block_type":"box","text":"given the company’s purpose and business model.","page_number":284,"box":{"x":116,"y":161,"width":376,"height":12}},{"id":"c479ebb4-5c8d-4f32-b382-2a95a192bb15","block_type":"box","text":"9","page_number":284,"box":{"x":494,"y":161,"width":5,"height":6}},{"id":"33d62770-aeda-4e92-8426-c4f5df018f96","block_type":"box","text":"We look to companies proposing to change their","page_number":284,"box":{"x":500,"y":161,"width":369,"height":12}},{"id":"1ed36736-7d76-4acc-bb35-3acdcad7a250","block_type":"box","text":"corporate form to a public benefit corporation, or similar entity, to put it to a shareholder vote if not","page_number":284,"box":{"x":116,"y":176,"width":731,"height":12}},{"id":"a8d90d9b-c216-4c28-8296-fbb6e1e9cba9","block_type":"box","text":"already required to do so under applicable law. We appreciate when supporting documentation from","page_number":284,"box":{"x":116,"y":192,"width":748,"height":12}},{"id":"71d04195-e2a4-4812-a54c-afef17e6ab87","block_type":"box","text":"companies or shareholders proposing to alter the corporate form clearly explains how the interests of","page_number":284,"box":{"x":116,"y":207,"width":755,"height":12}},{"id":"225c6a7f-d5d7-4e82-a7db-82e649245a57","block_type":"box","text":"shareholders and different stakeholders would be impacted as well as the accountability and voting","page_number":284,"box":{"x":116,"y":223,"width":741,"height":12}},{"id":"b623cd6a-ebe9-4318-8d62-aad8444d2013","block_type":"box","text":"mechanisms that would be available to shareholders. We generally support management proposals if","page_number":284,"box":{"x":117,"y":238,"width":756,"height":12}},{"id":"60a91e9e-0f9a-4762-af80-2e5fa33c7d47","block_type":"box","text":"our analysis indicates that shareholders’ financial interests are adequately protected. Corporate form","page_number":284,"box":{"x":116,"y":254,"width":752,"height":12}},{"id":"ea74a83d-355a-4554-8ff5-0fa627e74647","block_type":"box","text":"shareholder proposals are evaluated on a case-by-case basis.","page_number":284,"box":{"x":116,"y":269,"width":468,"height":12}},{"id":"6a36dc06-6c39-4971-ad09-d90716c347d1","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":284,"box":{"x":380,"y":305,"width":244,"height":10}},{"id":"c69fcb3e-d913-4cc5-8d76-85dee1f23b93","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder","page_number":284,"box":{"x":117,"y":335,"width":717,"height":12}},{"id":"4d487f79-ce8e-4513-a436-e37a5d89dd42","block_type":"box","text":"meeting, as long as certain requirements are met. Shareholder proposals span a wide range of topics,","page_number":284,"box":{"x":117,"y":350,"width":762,"height":12}},{"id":"69cfd2fa-3140-4ec6-b246-e5a519f74a4c","block_type":"box","text":"including governance reforms, capital management, and changes in the management or disclosure of","page_number":284,"box":{"x":117,"y":365,"width":758,"height":13}},{"id":"9c21229c-f303-4d8d-8d3f-44269b550943","block_type":"box","text":"sustainability-related risks. These proposals have a varying degree of relevance for companies across","page_number":284,"box":{"x":116,"y":381,"width":763,"height":12}},{"id":"1335e82d-0982-442e-9ed8-ff9740bf7328","block_type":"box","text":"sectors, locations, and business models.","page_number":284,"box":{"x":116,"y":397,"width":307,"height":11}},{"id":"1e1848da-a2b7-4548-bebe-91cdb7292501","block_type":"box","text":"BIS takes a case-by-case approach to voting on shareholder proposals and maintains a singular focus","page_number":284,"box":{"x":117,"y":426,"width":764,"height":12}},{"id":"fdb741bf-e8b4-421e-bd77-b72371efd1da","block_type":"box","text":"on the proposal’s implications for long-term financial value creation for shareholders. Our analysis","page_number":284,"box":{"x":116,"y":441,"width":730,"height":12}},{"id":"be0b6c81-6a3f-479c-8e69-ac256b0ab4d9","block_type":"box","text":"considers whether a shareholder proposal addresses a material risk that may impact a company’s","page_number":284,"box":{"x":116,"y":457,"width":732,"height":12}},{"id":"740cc998-449c-45db-b3cd-74588c00df7f","block_type":"box","text":"long-term financial performance. BIS may support shareholder proposals that request disclosures that","page_number":284,"box":{"x":117,"y":472,"width":760,"height":12}},{"id":"73d79183-4494-493f-a07c-c450b28cf979","block_type":"box","text":"help us, as long-term investors on behalf of our clients, better understand the material risks and","page_number":284,"box":{"x":117,"y":488,"width":713,"height":12}},{"id":"eb7a9cf6-9b2f-43c5-a7b2-ca0c98d06eb6","block_type":"box","text":"opportunities companies face and how they are managing them, especially where this information is","page_number":284,"box":{"x":116,"y":503,"width":747,"height":12}},{"id":"2bcc955c-62ed-4017-af61-d49886f5209c","block_type":"box","text":"additive given the company’s existing disclosures. We look for consistency between the specific","page_number":284,"box":{"x":116,"y":519,"width":715,"height":12}},{"id":"f0e0803c-0640-458b-b347-7694c9d6b9c3","block_type":"box","text":"request formally made in the proposal, the supporting documentation, and the proponents’ other","page_number":284,"box":{"x":117,"y":534,"width":717,"height":12}},{"id":"e683cbe9-5584-43d7-bbb5-191267858e38","block_type":"box","text":"communications on the issues. We also assess the company’s practices and disclosures and the costs","page_number":284,"box":{"x":116,"y":550,"width":769,"height":12}},{"id":"c7c3579f-2193-4724-a287-3cfecd57b2e9","block_type":"box","text":"and benefits to the company of meeting the request made in the proposal. We take into consideration a","page_number":284,"box":{"x":116,"y":565,"width":772,"height":12}},{"id":"bbe8dcf6-7a26-48c8-b046-4d167795518d","block_type":"box","text":"company’s governance practices and disclosures against those of their peers.","page_number":284,"box":{"x":116,"y":581,"width":583,"height":12}},{"id":"11d79f7f-5de1-4394-bc10-1346143502f6","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value","page_number":284,"box":{"x":117,"y":610,"width":767,"height":12}},{"id":"5ce10cda-2527-4df4-8ae3-7b692874e626","block_type":"box","text":"or that seek to micromanage companies. We take into consideration the legal effect of the proposal, as","page_number":284,"box":{"x":116,"y":625,"width":769,"height":12}},{"id":"67674794-7250-4eb2-a142-365dcaaba5e7","block_type":"box","text":"shareholder proposals may be advisory or legally binding depending on the jurisdiction, while others","page_number":284,"box":{"x":116,"y":641,"width":747,"height":12}},{"id":"792a01de-2256-4fb5-956e-73b6117af740","block_type":"box","text":"may make requests that would be deemed illegal in a given jurisdiction.","page_number":284,"box":{"x":117,"y":656,"width":534,"height":12}},{"id":"ff2a4217-c7e7-4ec3-8f2e-3a5ff3d18268","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization","page_number":284,"box":{"x":117,"y":685,"width":740,"height":12}},{"id":"d68aaefa-c9d3-4fcc-8d35-0364a434825d","block_type":"box","text":"that has submitted or advised on the proposal. We recognize that some shareholder proposals bundle","page_number":284,"box":{"x":116,"y":701,"width":757,"height":12}},{"id":"cce819df-1681-4be9-95fb-c4a89aa32100","block_type":"box","text":"topics and/or specific requests. Further, the proponent’s supporting statement may refer to topics that","page_number":284,"box":{"x":116,"y":716,"width":753,"height":12}},{"id":"9e17af12-566b-42ee-b65c-802ee408fc7a","block_type":"box","text":"are not directly related to the request made in the proposal. In voting on behalf of clients, we must vote","page_number":284,"box":{"x":116,"y":732,"width":762,"height":12}},{"id":"2068e10a-0986-4d68-962c-2a65a807d706","block_type":"box","text":"yes or no on the proposal as phrased by the proponent. Therefore, when we vote in support of a","page_number":284,"box":{"x":116,"y":747,"width":714,"height":13}},{"id":"fc80ed97-82b5-4044-90dd-1ae83a5e523b","block_type":"box","text":"proposal, we are not necessarily endorsing every element of the proposal or the reasoning, objectives,","page_number":284,"box":{"x":117,"y":763,"width":759,"height":12}},{"id":"04d29da4-fa26-420b-807d-c70294a6dd3e","block_type":"box","text":"or supporting statement of the proponent. We may support a proposal for different reasons than those","page_number":284,"box":{"x":116,"y":778,"width":757,"height":13}},{"id":"e32aa9d8-89b1-4040-b795-ad7e3163e48a","block_type":"box","text":"put forth by the proponent, when we believe that overall it may advance our clients’ long-term financial","page_number":284,"box":{"x":117,"y":794,"width":757,"height":12}},{"id":"d7670441-6f7d-4521-9bdd-29b8c6303dc7","block_type":"box","text":"interests.","page_number":284,"box":{"x":117,"y":810,"width":65,"height":9}},{"id":"8e3d207a-cffb-4f84-8938-7f71ec6838fb","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that","page_number":284,"box":{"x":117,"y":839,"width":752,"height":12}},{"id":"244cae0a-e1f4-4a11-8e1c-62c6b7a44e22","block_type":"box","text":"place restrictions and limitations on how BlackRock can interact with the companies in which we invest","page_number":284,"box":{"x":117,"y":854,"width":766,"height":12}},{"id":"bc6de053-5347-48d1-8c53-13060c4eb609","block_type":"box","text":"9","page_number":284,"box":{"x":143,"y":879,"width":4,"height":5}},{"id":"3e483c56-cab2-4b81-b967-f7a29ca954c0","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":284,"box":{"x":170,"y":879,"width":457,"height":10}},{"id":"b0640ad5-abe6-44e4-b099-c319bfc827f9","block_type":"box","text":"BlackRock Investment Stewardship","page_number":284,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"bbe53106-ad47-41ef-964b-5966f6d5d857","block_type":"box","text":"Global Principles |","page_number":284,"box":{"x":722,"y":909,"width":132,"height":12}},{"id":"f9687446-97e0-4f83-8924-867c540077c8","block_type":"box","text":"11","page_number":284,"box":{"x":866,"y":909,"width":15,"height":9}},{"id":"037f25de-5766-42a2-88b9-178d3d4681ba","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":284,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b925496b-e6c1-4eed-a574-e498d61d5405","block_type":"box","text":"on behalf of our clients. BlackRock does not nominate directors for board elections or submit","page_number":285,"box":{"x":116,"y":87,"width":692,"height":10}},{"id":"7fa6ea84-444e-43f3-a2db-a6f1a798b982","block_type":"box","text":"shareholder proposals to companies. Non-compliance with these requirements could adversely affect","page_number":285,"box":{"x":116,"y":102,"width":757,"height":13}},{"id":"6ab8ad90-b628-4629-a0f8-8c2281974ee7","block_type":"box","text":"BlackRock’s ability to serve its clients’ interests.","page_number":285,"box":{"x":117,"y":118,"width":358,"height":12}},{"id":"d489e491-1a75-4f43-96f3-2899566059ef","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":285,"box":{"x":223,"y":155,"width":559,"height":10}},{"id":"c7a76b41-4383-41ea-8280-17fff4f00d2b","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks","page_number":285,"box":{"x":116,"y":186,"width":758,"height":12}},{"id":"0c1d8d3a-618f-4550-ab44-5c14b058307a","block_type":"box","text":"and opportunities, is an important component of having an effective governance framework that","page_number":285,"box":{"x":116,"y":201,"width":714,"height":12}},{"id":"9cd573c2-4fb0-4fdb-8384-9b5587d3158a","block_type":"box","text":"supports durable, long-term financial value creation.","page_number":285,"box":{"x":116,"y":217,"width":385,"height":12}},{"id":"0ceb8744-37b6-4b29-8668-ee44edb39f33","block_type":"box","text":"10","page_number":285,"box":{"x":503,"y":217,"width":11,"height":6}},{"id":"5e0573d8-6d9e-455e-b4a7-006363ae9f60","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate","page_number":285,"box":{"x":116,"y":247,"width":703,"height":12}},{"id":"7272e1a2-81c0-44dc-b46a-b2bf4bd1ba3d","block_type":"box","text":"companies’ strategy and business practices related to material sustainability-related risks and","page_number":285,"box":{"x":116,"y":262,"width":699,"height":12}},{"id":"99004d86-8cfb-4c2c-8267-25c041f76c67","block_type":"box","text":"opportunities. We find it helpful when companies’ disclosures demonstrate that they have a resilient","page_number":285,"box":{"x":116,"y":278,"width":743,"height":12}},{"id":"f764f681-e6ed-422e-8ab3-9b2f08481970","block_type":"box","text":"business model that integrates material sustainability-related risks and opportunities into their strategy,","page_number":285,"box":{"x":117,"y":293,"width":766,"height":12}},{"id":"dd8084d7-e2b8-4acd-9a65-7887e648685d","block_type":"box","text":"risk management, and metrics and targets, including industry-specific metrics.","page_number":285,"box":{"x":117,"y":309,"width":583,"height":12}},{"id":"2b137133-fac8-4978-8bb9-3c8a47bc9928","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions.","page_number":285,"box":{"x":116,"y":339,"width":766,"height":12}},{"id":"d1309c22-3f83-4f76-beed-2bc6ec3c330f","block_type":"box","text":"The International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one","page_number":285,"box":{"x":116,"y":354,"width":743,"height":12}},{"id":"0e977a3c-24bb-4408-995b-5b63fd19fe3e","block_type":"box","text":"such approach to standardization that we find useful in our analysis.","page_number":285,"box":{"x":116,"y":370,"width":503,"height":12}},{"id":"3ade75ea-0376-47ee-b083-ad69ac434767","block_type":"box","text":"11","page_number":285,"box":{"x":622,"y":370,"width":9,"height":6}},{"id":"973c60f0-300b-4830-89cf-b4ea168af2e8","block_type":"box","text":"However, we do not mandate","page_number":285,"box":{"x":633,"y":370,"width":228,"height":11}},{"id":"32e245d6-349e-4945-95cf-c3d02ff6b628","block_type":"box","text":"any specific disclosure framework companies should use, and recognize that companies may report","page_number":285,"box":{"x":116,"y":385,"width":747,"height":12}},{"id":"d2bc71bc-7ca1-440d-8f7a-beb50afb8525","block_type":"box","text":"using different standards, some of which may be required by regulation. In such cases, we ask that","page_number":285,"box":{"x":117,"y":401,"width":739,"height":12}},{"id":"84c187f6-4290-4877-8640-0efd62600528","block_type":"box","text":"companies highlight the metrics that are industry- or company-specific.","page_number":285,"box":{"x":116,"y":416,"width":530,"height":12}},{"id":"4360bee6-a4b6-43f3-8cf2-df46218a0d72","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not","page_number":285,"box":{"x":116,"y":447,"width":702,"height":11}},{"id":"4e1701c7-86aa-46b1-9b21-7bd36569778a","block_type":"box","text":"prescribe timelines regarding when companies should make sustainability-related disclosures but","page_number":285,"box":{"x":117,"y":462,"width":725,"height":12}},{"id":"2ba74331-b1ca-489a-96db-38af436436b3","block_type":"box","text":"appreciate it when companies produce them sufficiently in advance of their shareholder meeting, to the","page_number":285,"box":{"x":116,"y":477,"width":770,"height":12}},{"id":"a44eab04-0054-4a72-b509-61fe7345d50f","block_type":"box","text":"best of their abilities, to provide investors with time to assess the data and make informed voting","page_number":285,"box":{"x":117,"y":493,"width":718,"height":12}},{"id":"fc8d2934-5892-4bd7-9c80-85d5342c60e9","block_type":"box","text":"decisions.","page_number":285,"box":{"x":116,"y":509,"width":79,"height":9}},{"id":"f62fb51c-a543-4ab1-a95b-57d55a0b87ed","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to","page_number":285,"box":{"x":117,"y":538,"width":700,"height":13}},{"id":"ccbd18a2-ae57-41d6-913f-ea6fd6ea63f0","block_type":"box","text":"companies on best practices and disclosures. While not a voting item, we find it helpful to our","page_number":285,"box":{"x":116,"y":554,"width":697,"height":12}},{"id":"5b3bf1f1-4fd7-4d05-8995-83156ed2b3a8","block_type":"box","text":"understanding of investment risk when companies disclose any relevant global sustainability-related","page_number":285,"box":{"x":117,"y":569,"width":746,"height":13}},{"id":"a2df84f9-2099-4bd4-9f96-7f1d86c9419e","block_type":"box","text":"standards adopted, the industry initiatives in which they participate, any peer group benchmarking","page_number":285,"box":{"x":116,"y":585,"width":731,"height":12}},{"id":"f183ec93-7840-4760-95e9-7e4ac4ba42ec","block_type":"box","text":"undertaken, and any assurance processes to help investors understand their approach to sustainable","page_number":285,"box":{"x":117,"y":601,"width":758,"height":12}},{"id":"f711b5dd-de6e-41e0-bf08-fab3924f9edd","block_type":"box","text":"and responsible business practices.","page_number":285,"box":{"x":116,"y":616,"width":271,"height":12}},{"id":"6a76e4a8-0162-4a84-9ae3-3769c30a109c","block_type":"box","text":"Climate and nature-related risk","page_number":285,"box":{"x":116,"y":646,"width":251,"height":10}},{"id":"e3c9dd7f-9a85-437a-b88a-c1b6a6446c7e","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term","page_number":285,"box":{"x":117,"y":676,"width":739,"height":12}},{"id":"aab77a0e-9943-4200-a3bf-14a93ab5cd17","block_type":"box","text":"financial value to investors. For companies facing material climate-related risks, we find it helpful when","page_number":285,"box":{"x":116,"y":692,"width":760,"height":12}},{"id":"cabb70da-4d9a-4a95-9748-bc7819f65e92","block_type":"box","text":"they publicly disclose, consistent with their business model and sector, how they intend to deliver long","page_number":285,"box":{"x":116,"y":707,"width":762,"height":12}},{"id":"7a81b2b9-5a3e-4a21-a97e-c86e5744e26c","block_type":"box","text":"term financial performance through the low-carbon transition, including where available, their transition","page_number":285,"box":{"x":116,"y":723,"width":760,"height":12}},{"id":"4a1fc42d-84f2-493c-82e9-404f6cce1a32","block_type":"box","text":"10","page_number":285,"box":{"x":144,"y":748,"width":8,"height":5}},{"id":"632cc76c-4cb8-4e17-a196-0388d1391a7a","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in a","page_number":285,"box":{"x":171,"y":748,"width":691,"height":10}},{"id":"002051ae-61eb-464d-b281-5429c1f9fc94","block_type":"box","text":"company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":285,"box":{"x":170,"y":761,"width":686,"height":9}},{"id":"6ec447f5-4e39-406d-8330-4c5ce309b33a","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":285,"box":{"x":170,"y":774,"width":682,"height":9}},{"id":"2cc8b2e7-8765-4a90-b943-855aebddd948","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":285,"box":{"x":170,"y":787,"width":683,"height":9}},{"id":"da11d5e7-bdf4-4c64-9c4c-8791fbf77709","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":285,"box":{"x":170,"y":800,"width":360,"height":9}},{"id":"f7c8ef39-6300-4bc3-899f-170208f5132c","block_type":"box","text":"11","page_number":285,"box":{"x":144,"y":815,"width":7,"height":5}},{"id":"ed009545-da96-41ae-82d3-7992d86bf34a","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards (IFRS)","page_number":285,"box":{"x":170,"y":815,"width":666,"height":10}},{"id":"5a3b567c-55e3-48aa-b69d-5e2a080f9cf8","block_type":"box","text":"Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework and the","page_number":285,"box":{"x":171,"y":828,"width":712,"height":9}},{"id":"49c5715a-3312-453f-8721-26d3e0d2a95e","block_type":"box","text":"standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":285,"box":{"x":170,"y":841,"width":649,"height":9}},{"id":"b43dbda9-872e-4240-9f2f-442f931e3e36","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":285,"box":{"x":170,"y":854,"width":674,"height":9}},{"id":"5a24c940-48c3-421b-a589-a3396b97248f","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":285,"box":{"x":170,"y":867,"width":647,"height":9}},{"id":"7b8ea2bc-d9f2-417d-b366-ac412dc36c3e","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":285,"box":{"x":171,"y":880,"width":312,"height":7}},{"id":"be0cfb68-9b41-4522-98de-15914e88ed78","block_type":"box","text":"BlackRock Investment Stewardship","page_number":285,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"461ec9cf-fa36-44cf-9269-99d385bc8387","block_type":"box","text":"Global Principles |","page_number":285,"box":{"x":722,"y":909,"width":132,"height":12}},{"id":"8b3c7d80-fb52-4371-a5e9-89c2b773cf44","block_type":"box","text":"12","page_number":285,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"35e5f5c6-6d2f-4b35-9209-f879319accb3","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":285,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4dab7eeb-15e6-42c4-8376-8a8c1453e172","block_type":"box","text":"plan.","page_number":286,"box":{"x":117,"y":87,"width":34,"height":12}},{"id":"23e4b363-01a5-4058-a9df-83d45b1c8444","block_type":"box","text":"12, 13","page_number":286,"box":{"x":153,"y":87,"width":29,"height":7}},{"id":"cd87c480-d61a-4d4b-b5da-2025a029b41b","block_type":"box","text":"From company disclosures and engagement, we seek to understand the strategies","page_number":286,"box":{"x":182,"y":87,"width":626,"height":12}},{"id":"0772119c-b1e0-4956-8581-bbaa121781f0","block_type":"box","text":"companies have in place to manage material risks to, and opportunities for, their long-term business","page_number":286,"box":{"x":116,"y":102,"width":748,"height":13}},{"id":"06ee6361-aae3-40cb-b5cd-f4eec9cd887e","block_type":"box","text":"model associated with a range of climate-related scenarios.","page_number":286,"box":{"x":117,"y":118,"width":446,"height":12}},{"id":"5be54c17-2896-4b22-a119-858f970817ea","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate","page_number":286,"box":{"x":117,"y":152,"width":734,"height":12}},{"id":"6aa5c8f4-f28b-4114-89be-558670da0297","block_type":"box","text":"large companies to disclose such climate-related financial information, while in other jurisdictions these","page_number":286,"box":{"x":117,"y":168,"width":767,"height":12}},{"id":"c831f187-e62c-4afa-9314-ad34348a0826","block_type":"box","text":"disclosures are viewed as best practice in the market.","page_number":286,"box":{"x":116,"y":183,"width":404,"height":12}},{"id":"23d6f165-a917-42ea-84df-15778170dbbe","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company","page_number":286,"box":{"x":116,"y":217,"width":726,"height":12}},{"id":"05348b1a-d580-415c-985b-2108f9ac804b","block_type":"box","text":"specific climate-related risks and opportunities, and informing investment decisions. Such disclosures","page_number":286,"box":{"x":116,"y":233,"width":757,"height":12}},{"id":"5bbf1ae6-f560-4af4-81e0-c5afdd895e53","block_type":"box","text":"also provide investors with insights into how companies are managing the risks associated with a","page_number":286,"box":{"x":116,"y":248,"width":726,"height":12}},{"id":"56be3e43-c400-4b47-8157-75ea7a4c7120","block_type":"box","text":"transition to a low-carbon economy by managing their own carbon emissions or emissions intensities","page_number":286,"box":{"x":116,"y":264,"width":754,"height":12}},{"id":"2c62bec5-7e74-4db1-9b2c-0216280419f9","block_type":"box","text":"to the extent financially practicable.","page_number":286,"box":{"x":116,"y":279,"width":266,"height":12}},{"id":"07964a63-5267-489b-99dd-8932161583b2","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-,","page_number":286,"box":{"x":116,"y":313,"width":723,"height":12}},{"id":"48b9a48d-0011-4e73-915f-7812180468e0","block_type":"box","text":"medium- and long-term targets, ideally science-based where these are available for their sector, for","page_number":286,"box":{"x":117,"y":329,"width":742,"height":12}},{"id":"7b4ec265-c592-4a52-9e77-8dbbb626aa4e","block_type":"box","text":"scope 1 and 2 greenhouse gas emissions (GHG) reductions and to demonstrate how their targets are","page_number":286,"box":{"x":116,"y":344,"width":760,"height":12}},{"id":"7390aaec-80d9-4908-b157-3eccce6482eb","block_type":"box","text":"consistent with the long-term financial interests of their investors.","page_number":286,"box":{"x":116,"y":360,"width":486,"height":12}},{"id":"2b8963ec-b211-4781-ba07-bf11e9f65157","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this","page_number":286,"box":{"x":116,"y":394,"width":766,"height":12}},{"id":"8c59d39a-d937-48cf-b8d1-6b8beadae4d7","block_type":"box","text":"stage, we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity,","page_number":286,"box":{"x":116,"y":409,"width":749,"height":13}},{"id":"6401e423-685c-486e-9524-81349dfea18b","block_type":"box","text":"regulatory uncertainty, concerns about double-counting, and lack of direct control by companies. We","page_number":286,"box":{"x":117,"y":425,"width":749,"height":12}},{"id":"1f27abe7-af55-4910-988d-d7ef0b0f3866","block_type":"box","text":"welcome disclosures and commitments that companies choose to make regarding material scope 3","page_number":286,"box":{"x":116,"y":441,"width":744,"height":12}},{"id":"f52e64ae-0a63-4734-aaa5-648277deb613","block_type":"box","text":"emissions and recognize that these are provided on a good-faith basis as methodology develops.","page_number":286,"box":{"x":116,"y":456,"width":728,"height":12}},{"id":"d640fe7d-f316-4541-890c-fc9bb8f9af9a","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or","page_number":286,"box":{"x":117,"y":490,"width":742,"height":12}},{"id":"6ef249d3-a1a9-407c-813a-920113d5081c","block_type":"box","text":"supply chains are materially reliant on natural capital, nature-related risks and opportunities may affect","page_number":286,"box":{"x":116,"y":506,"width":765,"height":12}},{"id":"c51c9932-be9b-4dde-94cf-2dec9e4a468c","block_type":"box","text":"their ability to generate long-term financial returns.","page_number":286,"box":{"x":116,"y":521,"width":372,"height":12}},{"id":"16c3c65c-fe86-4748-b731-86376ff3311f","block_type":"box","text":"14","page_number":286,"box":{"x":491,"y":521,"width":11,"height":6}},{"id":"4aee68a8-29fb-45d5-aec0-3802d041ae89","block_type":"box","text":"For these companies, we rely on disclosures to","page_number":286,"box":{"x":502,"y":521,"width":360,"height":12}},{"id":"14ba7d6d-aad4-4b42-b477-8747f084fe64","block_type":"box","text":"understand how their strategies consider nature-related impacts and dependencies and to assess how","page_number":286,"box":{"x":117,"y":537,"width":765,"height":12}},{"id":"dbbe2344-9718-4e14-a222-e77551ee5e29","block_type":"box","text":"the board oversees these risks.","page_number":286,"box":{"x":116,"y":552,"width":232,"height":10}},{"id":"c9e954bd-5dce-4be1-8e3b-65e9aa7ef5f9","block_type":"box","text":"15","page_number":286,"box":{"x":351,"y":552,"width":10,"height":6}},{"id":"a8c19516-73b6-4fe9-9486-4c379bcfd8da","block_type":"box","text":"Companies’ impact on their workforce, supply chains, and communities","page_number":286,"box":{"x":116,"y":586,"width":580,"height":12}},{"id":"bebf736c-7c17-48e8-810f-9ffe313aa1c4","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term","page_number":286,"box":{"x":117,"y":620,"width":768,"height":12}},{"id":"f51e842f-64d6-433a-b80b-cf8043818cac","block_type":"box","text":"financial performance. For many companies, key stakeholders include employees, business supply","page_number":286,"box":{"x":116,"y":636,"width":741,"height":12}},{"id":"244b2d50-c4e4-4c03-8925-61117fd9427b","block_type":"box","text":"chains, clients and consumers, regulators, and the communities in which they operate.","page_number":286,"box":{"x":116,"y":651,"width":647,"height":12}},{"id":"275b6601-ee88-4e41-8169-6bd943718953","block_type":"box","text":"12","page_number":286,"box":{"x":144,"y":677,"width":8,"height":4}},{"id":"232e8ca1-5b8d-4278-8cf3-ab1e4e3dce80","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":286,"box":{"x":170,"y":677,"width":685,"height":9}},{"id":"10a80c7e-36e4-4dc8-b9d7-2af78ab3c29c","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":286,"box":{"x":170,"y":690,"width":670,"height":9}},{"id":"f8f18464-ea55-47e7-a141-8055f3497b83","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":286,"box":{"x":171,"y":702,"width":691,"height":10}},{"id":"8ae8457e-14dd-46ec-908c-31ace905078e","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives,","page_number":286,"box":{"x":170,"y":715,"width":710,"height":10}},{"id":"43494f20-f4b3-4626-96d3-8146b13db7bf","block_type":"box","text":"and actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":286,"box":{"x":170,"y":728,"width":709,"height":10}},{"id":"7db7bc69-9369-4746-812f-65da82195cdc","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. While transition plans can","page_number":286,"box":{"x":170,"y":741,"width":710,"height":10}},{"id":"61660320-0a5c-445d-9b06-3a6204d53abf","block_type":"box","text":"be helpful disclosure, BIS does not make the preparation and production of transition plans a voting issue. BIS may","page_number":286,"box":{"x":170,"y":754,"width":684,"height":10}},{"id":"81aaeb26-e59d-4c25-be48-6f2e9544f29f","block_type":"box","text":"engage companies that have chosen to publish a transition plan to understand their planned actions and resource","page_number":286,"box":{"x":170,"y":767,"width":675,"height":10}},{"id":"8ba5a104-4fcf-4600-ab26-225ae600bf1b","block_type":"box","text":"implications. Website accessed in December 2025.","page_number":286,"box":{"x":170,"y":780,"width":303,"height":9}},{"id":"b6142477-8d44-4c51-8fb3-1cc1db527f45","block_type":"box","text":"13","page_number":286,"box":{"x":144,"y":796,"width":8,"height":5}},{"id":"c4745f4d-d963-4f5f-8af3-0518d2169fb7","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December 2025.","page_number":286,"box":{"x":171,"y":796,"width":703,"height":10}},{"id":"618e4289-06d2-4bee-a036-7dc4a2a65514","block_type":"box","text":"14","page_number":286,"box":{"x":144,"y":812,"width":8,"height":5}},{"id":"d602e295-5544-4286-a09b-aa517ea4abc5","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December 2025.","page_number":286,"box":{"x":171,"y":812,"width":697,"height":10}},{"id":"c958bafd-5c80-4bc8-87b4-b1de2e5e6ce8","block_type":"box","text":"15","page_number":286,"box":{"x":144,"y":828,"width":8,"height":5}},{"id":"25ca9fe1-6534-4a4a-ae7a-9dfa3e0667df","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":286,"box":{"x":170,"y":828,"width":660,"height":10}},{"id":"aee62f1c-d7ca-468a-8871-24dbf41bb6b6","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of the","page_number":286,"box":{"x":170,"y":841,"width":704,"height":9}},{"id":"acec7911-1432-4c75-abd1-00dd478f6459","block_type":"box","text":"Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":286,"box":{"x":170,"y":854,"width":689,"height":9}},{"id":"36e58ae6-1795-4a6c-bbc4-71bbcc0dcdc9","block_type":"box","text":"some companies may report using different standards, which may be required by regulation, or one of a number of","page_number":286,"box":{"x":170,"y":867,"width":680,"height":9}},{"id":"9228d28d-5741-4f9e-adea-ea9692895642","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":286,"box":{"x":170,"y":880,"width":680,"height":9}},{"id":"911f5937-6c48-4636-a3f8-6c6083941b76","block_type":"box","text":"BlackRock Investment Stewardship","page_number":286,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"50dc6200-f71f-4dcd-a828-387427466c3e","block_type":"box","text":"Global Principles |","page_number":286,"box":{"x":722,"y":909,"width":132,"height":12}},{"id":"b9a573c3-f2d7-4384-b676-65d3b68e98ed","block_type":"box","text":"13","page_number":286,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"86fbc70d-07cb-4e8d-ab50-6bc3d72ae978","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":286,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"20ad7d6a-5d9d-4060-983b-d600f24dc01a","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives","page_number":287,"box":{"x":117,"y":87,"width":769,"height":12}},{"id":"1482216e-802c-464c-8c6d-e9e85fdefd82","block_type":"box","text":"are more likely to deliver durable, long-term financial performance. By contrast, we have found that","page_number":287,"box":{"x":116,"y":102,"width":739,"height":13}},{"id":"7c4efcea-ee4e-4eba-ac99-bdc9f20a083e","block_type":"box","text":"poor relationships may create adverse impacts that could expose companies to legal, regulatory,","page_number":287,"box":{"x":117,"y":118,"width":722,"height":12}},{"id":"a4ec3f17-f111-41f4-b368-2111f80fe230","block_type":"box","text":"operational, and reputational risks. This is particularly relevant to a company’s workforce, which is","page_number":287,"box":{"x":116,"y":134,"width":730,"height":12}},{"id":"e00707c5-a037-442c-b5ca-b98b4dc16b65","block_type":"box","text":"central to long-term financial value creation.","page_number":287,"box":{"x":116,"y":149,"width":324,"height":12}},{"id":"50457242-3af9-41b0-a2c1-38947e271050","block_type":"box","text":"16","page_number":287,"box":{"x":442,"y":149,"width":11,"height":6}},{"id":"b10ff534-a247-42c8-b2f1-f63fdf1004b2","block_type":"box","text":"As a long-term shareholder on behalf of our clients, we find it helpful when companies disclose how","page_number":287,"box":{"x":116,"y":179,"width":743,"height":13}},{"id":"0fab1900-77a0-411e-8bad-fc0f753bcdc0","block_type":"box","text":"they have identified their key stakeholders and considered their interests in business decision-making.","page_number":287,"box":{"x":116,"y":195,"width":763,"height":12}},{"id":"62c89162-f9f6-42e7-8fd9-23440639d6f5","block_type":"box","text":"In addition to understanding broader stakeholder relationships, BIS finds it helpful when companies","page_number":287,"box":{"x":117,"y":210,"width":740,"height":13}},{"id":"e5eb16ff-af80-46f4-a756-a4f01908e5bb","block_type":"box","text":"discuss how they consider the needs of their workforce today, and the skills required for their future","page_number":287,"box":{"x":116,"y":226,"width":742,"height":12}},{"id":"5d1f44bc-6677-4fe1-a4c9-cde40526ca16","block_type":"box","text":"business strategy. We are also interested in understanding how the board monitors and engages on","page_number":287,"box":{"x":117,"y":242,"width":747,"height":12}},{"id":"7cdd9e0b-5a46-47b5-bf2d-f5b0360bc55f","block_type":"box","text":"these matters, given it is well positioned to ensure that the approach taken by management is informed","page_number":287,"box":{"x":116,"y":257,"width":770,"height":12}},{"id":"5fa5e80a-cc0f-4610-aa32-e0c8ecea4639","block_type":"box","text":"by and aligns with the company’s strategy. BIS does not direct a company’s policies or practices, which","page_number":287,"box":{"x":117,"y":272,"width":771,"height":13}},{"id":"51ffcebc-b12d-438c-8eb2-7cae6c755bba","block_type":"box","text":"are the responsibility of management and the board.","page_number":287,"box":{"x":116,"y":288,"width":394,"height":12}},{"id":"95debe8e-22e1-4a98-b866-6a4d6b95fff2","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse","page_number":287,"box":{"x":117,"y":318,"width":754,"height":12}},{"id":"ac9aec3f-dcd3-4faa-aef6-794ad56064a3","block_type":"box","text":"impacts that could arise from their business practices and affect critical relationships with their","page_number":287,"box":{"x":117,"y":334,"width":701,"height":12}},{"id":"8e12f7c9-4260-4fab-b509-bd560600f2ab","block_type":"box","text":"stakeholders. We encourage companies to implement, to the extent appropriate, monitoring processes","page_number":287,"box":{"x":116,"y":350,"width":767,"height":12}},{"id":"f9506e0c-fbbf-4deb-80e3-b8481c643760","block_type":"box","text":"(often referred to as due diligence) to identify and mitigate potential adverse impacts and grievance","page_number":287,"box":{"x":117,"y":365,"width":740,"height":12}},{"id":"16e6a7c1-f981-44ff-a666-d34d9ada70a2","block_type":"box","text":"mechanisms to remediate any actual adverse material impacts.","page_number":287,"box":{"x":117,"y":381,"width":474,"height":12}},{"id":"18220348-644f-4751-91a1-5284087647d2","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key","page_number":287,"box":{"x":116,"y":411,"width":729,"height":12}},{"id":"4027c36a-e783-46b3-8141-131c3198fdb7","block_type":"box","text":"stakeholders and may convey concerns about board oversight in our voting on director elections or","page_number":287,"box":{"x":116,"y":426,"width":739,"height":12}},{"id":"4f7d1649-9bf1-423d-9418-9163d196ddba","block_type":"box","text":"supporting a business relevant shareholder proposal when, in our assessment, the board is not acting","page_number":287,"box":{"x":116,"y":442,"width":761,"height":12}},{"id":"7df1b901-3009-4581-9772-07c7b6babbc6","block_type":"box","text":"in shareholders’ long-term financial interests.","page_number":287,"box":{"x":117,"y":457,"width":337,"height":12}},{"id":"499b84ee-3884-474c-9551-7f10366e1949","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":287,"box":{"x":188,"y":495,"width":629,"height":10}},{"id":"1123b354-e9bc-4176-b62e-5622f75923d7","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on","page_number":287,"box":{"x":117,"y":526,"width":742,"height":12}},{"id":"e8a289f2-892a-4a1c-bffa-3cf118dec71c","block_type":"box","text":"behalf of clients at the global and regional level.","page_number":287,"box":{"x":117,"y":541,"width":358,"height":12}},{"id":"458dddfb-155d-4b47-b200-e0cac5142891","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the","page_number":287,"box":{"x":116,"y":572,"width":699,"height":12}},{"id":"6bc6a618-6ad6-4c41-bc49-ff6497698863","block_type":"box","text":"Committee) supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to","page_number":287,"box":{"x":117,"y":587,"width":760,"height":12}},{"id":"bfbf2b9f-92f6-4a45-9dc5-9607766c21b1","block_type":"box","text":"policies and procedures as well as market-level stewardship requirements. The Committee reviews","page_number":287,"box":{"x":117,"y":603,"width":740,"height":12}},{"id":"93687f53-955d-47cb-90ce-e93656d7392d","block_type":"box","text":"and approves amendments to the Global Principles and regional voting guidelines. The Committee","page_number":287,"box":{"x":116,"y":618,"width":738,"height":12}},{"id":"a07f22e3-a66a-4d1e-a77e-4cb79fdc478f","block_type":"box","text":"also reviews periodic reports regarding the votes cast by BIS on behalf of clients, as well as updates","page_number":287,"box":{"x":116,"y":634,"width":749,"height":12}},{"id":"770b19e1-0f8b-4192-9a7c-cb42eeb63468","block_type":"box","text":"on material process issues, procedural changes, and other risk oversight considerations. The","page_number":287,"box":{"x":116,"y":649,"width":697,"height":12}},{"id":"866925a1-35b5-4914-bc48-aaae3bf1d80f","block_type":"box","text":"Committee is chaired by the Global Heads of the Investment Stewardship function and its members","page_number":287,"box":{"x":117,"y":665,"width":737,"height":12}},{"id":"bb050e2f-22f5-4e18-92ec-67b025b7c073","block_type":"box","text":"include senior BlackRock executives with legal, risk, and other experience relevant to team oversight","page_number":287,"box":{"x":117,"y":680,"width":747,"height":12}},{"id":"9dbdecf1-1efb-44e3-b016-54e5b615060a","block_type":"box","text":"who are independent from the investment stewardship function.","page_number":287,"box":{"x":116,"y":696,"width":471,"height":12}},{"id":"89854b8c-2280-4352-958b-70d03123663d","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with","page_number":287,"box":{"x":116,"y":726,"width":764,"height":12}},{"id":"fe2effb4-703e-4aba-8195-93f2682d359f","block_type":"box","text":"the Global Principles and regional voting guidelines. At the regional level, three regional Heads for the","page_number":287,"box":{"x":116,"y":742,"width":756,"height":12}},{"id":"82d75867-e086-4398-93c5-9dc388180d04","block_type":"box","text":"Americas, APAC, and EMEA oversee BIS’ activities for their specific markets.","page_number":287,"box":{"x":116,"y":757,"width":574,"height":12}},{"id":"e89d9fe3-57b2-4065-bee2-299f86da3a69","block_type":"box","text":"VOTE EXECUTION","page_number":287,"box":{"x":425,"y":795,"width":148,"height":10}},{"id":"9758d5bd-6049-4de0-8fda-6d5753896ef1","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We","page_number":287,"box":{"x":117,"y":825,"width":739,"height":13}},{"id":"84a595f2-932e-4f27-ac54-4df54521b16d","block_type":"box","text":"have processes in place to consider all proxies for which we have voting authority, and submit voting","page_number":287,"box":{"x":117,"y":841,"width":751,"height":12}},{"id":"e34572bc-8ad9-4595-abb8-2f3ec458f10a","block_type":"box","text":"16","page_number":287,"box":{"x":144,"y":866,"width":8,"height":5}},{"id":"7f7b98d1-e567-494f-af78-52c2daf3e330","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":287,"box":{"x":171,"y":866,"width":677,"height":10}},{"id":"ac1ef73e-0bc4-40e8-92fc-ac1ba15f12e1","block_type":"box","text":"December 2025.","page_number":287,"box":{"x":171,"y":879,"width":97,"height":8}},{"id":"471bad32-b75e-459b-8144-643d2ec73bfa","block_type":"box","text":"BlackRock Investment Stewardship","page_number":287,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"e6f8cc1e-d9f2-4277-8aa2-821176b65bc5","block_type":"box","text":"Global Principles |","page_number":287,"box":{"x":722,"y":909,"width":132,"height":12}},{"id":"1e652873-deb0-4dba-8113-a3e3c64daca4","block_type":"box","text":"14","page_number":287,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"a18f57ed-f11d-427d-8291-6cf8e5b1e6bc","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":287,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9060dbbd-2765-43a5-84ab-d499869b442d","block_type":"box","text":"decisions, or refrain from voting when logistical issues arise (see below). The BIS Benchmark","page_number":288,"box":{"x":116,"y":87,"width":698,"height":12}},{"id":"1a0831e4-e001-4adc-92b2-14ad001f997a","block_type":"box","text":"Policies – and the vote decisions made consistent with those policies – reflect our reasonable and","page_number":288,"box":{"x":117,"y":102,"width":730,"height":12}},{"id":"dccd31c8-2497-418e-8cd7-a88fc72a6e58","block_type":"box","text":"independent judgment and are made without regard to the relationship between the issuer of the proxy","page_number":288,"box":{"x":117,"y":118,"width":766,"height":12}},{"id":"4eb5aa0f-312a-45ed-a8fc-cd1563188e09","block_type":"box","text":"(or any shareholder proponent or dissident shareholder) and the Fund, the Fund’s affiliates (if any),","page_number":288,"box":{"x":117,"y":134,"width":739,"height":12}},{"id":"bc6a23e5-8787-4261-9a1a-a8ea49b472b0","block_type":"box","text":"BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts management policies and","page_number":288,"box":{"x":117,"y":149,"width":768,"height":12}},{"id":"361dfae0-adac-4202-aafb-5292e9db32ea","block_type":"box","text":"procedures,” below).","page_number":288,"box":{"x":117,"y":165,"width":157,"height":12}},{"id":"981e6104-fa9e-4704-9c12-1d885fd93cd6","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well","page_number":288,"box":{"x":117,"y":196,"width":749,"height":12}},{"id":"acfba2d6-2852-4788-86f9-c4131f6dba88","block_type":"box","text":"as the cost of voting such proxies on behalf of our clients. These issues include, but are not limited to:","page_number":288,"box":{"x":116,"y":212,"width":761,"height":12}},{"id":"1a46717e-5dcd-4a44-9229-f67f4a1bfc25","block_type":"box","text":"1) untimely notice of shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3)","page_number":288,"box":{"x":118,"y":227,"width":754,"height":12}},{"id":"21048ac1-a9dd-4a0b-b161-4bced66393ab","block_type":"box","text":"requirements to vote proxies in person; 4) “share-blocking” (requirements that investors who exercise","page_number":288,"box":{"x":117,"y":243,"width":756,"height":12}},{"id":"e312266a-ee6d-4e1c-a0fc-ad7ffdc2f1a4","block_type":"box","text":"their voting rights surrender the right to dispose of their holdings from the point at which votes are","page_number":288,"box":{"x":116,"y":258,"width":728,"height":12}},{"id":"c6f987e0-510e-430e-94ca-b4596c694f2b","block_type":"box","text":"submitted until after the after the shareholder meeting has occurred); 5) potential difficulties in","page_number":288,"box":{"x":116,"y":274,"width":701,"height":12}},{"id":"1fefc362-9909-460e-8341-ea5b90d165e1","block_type":"box","text":"translating the proxy; 6) regulatory constraints; and 7) requirements to provide local agents with","page_number":288,"box":{"x":116,"y":289,"width":714,"height":12}},{"id":"4f5cff3c-b156-46b0-868f-a0b2989562db","block_type":"box","text":"powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":288,"box":{"x":117,"y":305,"width":706,"height":12}},{"id":"b1d2d3e2-aa06-4bf2-a38e-defbd9f5f391","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":288,"box":{"x":116,"y":320,"width":742,"height":12}},{"id":"31d68ae5-632c-4523-90bc-f2193d046345","block_type":"box","text":"BIS votes proxies in these situations on a “best-efforts” basis. In addition, BIS may determine that it is","page_number":288,"box":{"x":117,"y":352,"width":758,"height":12}},{"id":"91ccbd2d-f89c-4560-a8f6-4f820498b9bf","block_type":"box","text":"generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if","page_number":288,"box":{"x":116,"y":368,"width":755,"height":12}},{"id":"b8605b37-a36d-414e-b7d4-25c8d83071d1","block_type":"box","text":"the costs (including but not limited to opportunity costs associated with share-blocking constraints)","page_number":288,"box":{"x":116,"y":383,"width":734,"height":12}},{"id":"6410bf42-3fdd-4729-b451-e855ce4b2a12","block_type":"box","text":"associated with exercising a vote are expected to outweigh the benefit the client would derive by voting","page_number":288,"box":{"x":116,"y":399,"width":770,"height":12}},{"id":"62f4940c-ffc4-4b49-a1da-58db84286c40","block_type":"box","text":"on the proposal.","page_number":288,"box":{"x":116,"y":414,"width":125,"height":12}},{"id":"d018ca72-644d-467d-98e7-344c16e3585a","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":288,"box":{"x":265,"y":454,"width":475,"height":10}},{"id":"c7daabad-66c5-4983-aaf2-83f07943341c","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business","page_number":288,"box":{"x":117,"y":486,"width":724,"height":12}},{"id":"c17699f7-8d55-4e92-9197-2b183f431bcd","block_type":"box","text":"partnership or enterprise-level vendor management activities.","page_number":288,"box":{"x":117,"y":501,"width":460,"height":12}},{"id":"f320ca65-94ca-4c87-9d5d-8c296f5f791d","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’","page_number":288,"box":{"x":117,"y":533,"width":739,"height":12}},{"id":"5be88311-a05d-49d4-8884-abf8445aa441","block_type":"box","text":"proxy voting activity. Such influence might stem from any relationship between the investee company","page_number":288,"box":{"x":117,"y":549,"width":755,"height":12}},{"id":"9cda9735-e4a0-4160-8a99-1690fb3940cc","block_type":"box","text":"(or any shareholder proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund","page_number":288,"box":{"x":117,"y":564,"width":766,"height":12}},{"id":"26baa905-c4c4-42ab-bd7f-69563f1b8f81","block_type":"box","text":"or a Fund’s affiliates, or BlackRock employees.","page_number":288,"box":{"x":116,"y":580,"width":354,"height":12}},{"id":"d86b9cfd-bd31-42cb-bd52-75514c953ded","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":288,"box":{"x":117,"y":611,"width":630,"height":13}},{"id":"7604418c-2853-4339-9dbb-3bc561cba499","block_type":"box","text":"SECURITIES LENDING","page_number":288,"box":{"x":410,"y":643,"width":185,"height":10}},{"id":"05d910dd-1493-4ee7-9b9f-82a11792200b","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending","page_number":288,"box":{"x":116,"y":675,"width":704,"height":12}},{"id":"19f98d96-057f-4bf5-b4ec-5650b614de33","block_type":"box","text":"securities enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending","page_number":288,"box":{"x":116,"y":690,"width":729,"height":13}},{"id":"e7af5714-737d-426e-90b7-28ec95e68d19","block_type":"box","text":"agreements allow it to recall securities out on loan at any time. BlackRock (or any other lender) does","page_number":288,"box":{"x":116,"y":706,"width":746,"height":12}},{"id":"00fcd9f4-6add-44d6-9d61-926096173c39","block_type":"box","text":"not retain voting rights for securities out on loan. 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This includes companies which produce goods and services that contribute to","page_number":294,"box":{"x":117,"y":267,"width":745,"height":12}},{"id":"d9e763f5-5e71-4735-b1bc-62e64051e77d","block_type":"box","text":"real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":294,"box":{"x":117,"y":283,"width":761,"height":12}},{"id":"ce8b01b2-c5d0-4657-8102-e8d3528841c1","block_type":"box","text":"the low-carbon transition, particularly those representing the major sources of scopes 1, 2, and 3","page_number":294,"box":{"x":116,"y":298,"width":722,"height":12}},{"id":"b135fee8-b47a-48ac-acef-44f3ada043ed","block_type":"box","text":"greenhouse gas (GHG) emissions across companies held by in-scope funds and accounts that have","page_number":294,"box":{"x":116,"y":314,"width":751,"height":12}},{"id":"66cf5154-56b9-481a-bb7c-265f3747ee91","block_type":"box","text":"selected the 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BlackRock Investment Institute (BII) highlights that changing government policy,","page_number":294,"box":{"x":117,"y":560,"width":741,"height":12}},{"id":"45a8cb95-db9b-4604-a8ee-557311e23f2a","block_type":"box","text":"technology, and consumer and investor preferences are driving the transition to a low-carbon","page_number":294,"box":{"x":116,"y":576,"width":696,"height":12}},{"id":"13a16441-3224-4787-b154-6b42c69d3dcb","block_type":"box","text":"economy, but sectors and markets can decarbonize at varying speeds given the dynamic and","page_number":294,"box":{"x":116,"y":592,"width":700,"height":11}},{"id":"55e5d2f2-cf2a-4601-8648-4a9d5fc43c79","block_type":"box","text":"uncertain nature of technological feasibility, consumer demand, and government policies, among 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Further, the Guidelines consider the differences between","page_number":295,"box":{"x":150,"y":482,"width":734,"height":12}},{"id":"1398370f-f92c-4320-ba15-efa54a141a15","block_type":"box","text":"the actions and outcomes over which company management has influence, and those it does not.","page_number":295,"box":{"x":150,"y":498,"width":731,"height":12}},{"id":"29ad49e9-87f8-4fd5-9c7e-1122a663f9a7","block_type":"box","text":"•","page_number":295,"box":{"x":125,"y":524,"width":4,"height":4}},{"id":"d786f810-a918-4726-a635-3fddaea9b360","block_type":"box","text":"Focus on useful, contextualized disclosures that help inform investors views, while","page_number":295,"box":{"x":151,"y":521,"width":670,"height":12}},{"id":"32527d2e-871a-47f8-8c6b-99217c36bf05","block_type":"box","text":"recognizing data limitations:","page_number":295,"box":{"x":150,"y":537,"width":226,"height":12}},{"id":"34c636fc-c503-446b-8b29-f71cb7bac1f2","block_type":"box","text":"Under the Guidelines, the dedicated team looks for disclosures that","page_number":295,"box":{"x":378,"y":537,"width":510,"height":11}},{"id":"6ae8d213-7b5d-41ca-9f12-a53f3832ab5f","block_type":"box","text":"outline key milestones and dependencies underpinning the company’s low-carbon transition","page_number":295,"box":{"x":150,"y":552,"width":687,"height":12}},{"id":"fe85085b-b9af-45b0-9191-8b841f234fc9","block_type":"box","text":"strategy, explain the trade-offs required to adapt the business model, and include relevant data","page_number":295,"box":{"x":150,"y":568,"width":710,"height":12}},{"id":"ff2e0a70-e60d-4e2f-88c5-e7d702e7a964","block_type":"box","text":"and narrative.","page_number":295,"box":{"x":150,"y":583,"width":107,"height":10}},{"id":"380d224a-0b2b-4251-8ea4-367f97e0ee2c","block_type":"box","text":"•","page_number":295,"box":{"x":125,"y":610,"width":4,"height":3}},{"id":"41a15a44-79b1-44fb-9d3a-1c20e6f4ecbf","block_type":"box","text":"Consistency with the participating cli","page_number":295,"box":{"x":150,"y":606,"width":283,"height":12}},{"id":"884d4e9a-b630-437f-a5ac-74b7d0e4043d","block_type":"box","text":"ents’ position as a minority investor:","page_number":295,"box":{"x":435,"y":607,"width":279,"height":11}},{"id":"3d5670ec-e83b-4ac2-b53f-d43441d8f2ae","block_type":"box","text":"The boards and","page_number":295,"box":{"x":715,"y":607,"width":123,"height":9}},{"id":"f3c30f50-8950-40ce-acc5-ae85f1d8c229","block_type":"box","text":"executive leadership of companies determine a com","page_number":295,"box":{"x":150,"y":622,"width":370,"height":12}},{"id":"56f575e9-6eb3-4101-b945-4ca7ea65f7e2","block_type":"box","text":"pany’s strategy and its implementation. Under the","page_number":295,"box":{"x":522,"y":622,"width":357,"height":12}},{"id":"1fbc7421-2634-46e6-8532-d9aef9ed0bbe","block_type":"box","text":"Guidelines, the dedicated team makes decisions on how to engage companies and vote proxies","page_number":295,"box":{"x":150,"y":637,"width":688,"height":12}},{"id":"ff36ea23-8ada-4956-80a6-ca7a71198b50","block_type":"box","text":"independently, based on its professional judgment of t","page_number":295,"box":{"x":150,"y":653,"width":379,"height":12}},{"id":"88d21a51-7a5e-4d19-89cf-6ae032ac94f4","block_type":"box","text":"the priorities and outcomes most aligned with","page_number":295,"box":{"x":529,"y":653,"width":326,"height":12}},{"id":"24f27ed3-ec86-4079-8998-2b3854d51502","block_type":"box","text":"participating clients’ investment objectives.","page_number":295,"box":{"x":150,"y":669,"width":300,"height":11}},{"id":"990966e6-84e7-452f-8b65-96c6811f71e0","block_type":"box","text":"VOTING APPROACH UNDER THE GUIDELINES","page_number":295,"box":{"x":306,"y":707,"width":375,"height":10}},{"id":"762988d4-dcf9-4c37-a714-84c97a60893e","block_type":"box","text":"12","page_number":295,"box":{"x":682,"y":707,"width":11,"height":6}},{"id":"0cef7614-e8ab-406c-858f-0d446a01a124","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team","page_number":295,"box":{"x":116,"y":738,"width":752,"height":12}},{"id":"daacbde5-3ded-453d-b47b-51fce23c360f","block_type":"box","text":"applies a case-by-case approach that reflects the uneven pace of the low-carbon transition across","page_number":295,"box":{"x":116,"y":754,"width":728,"height":12}},{"id":"f481dffd-c1e0-4ed5-bba6-47807e671f09","block_type":"box","text":"sectors and markets, and acknowledges the distinction between what company management can","page_number":295,"box":{"x":116,"y":769,"width":723,"height":12}},{"id":"4c53f8f0-156c-481f-82cb-17acf3147ba3","block_type":"box","text":"influence and what lies beyond its control. As a result, voting decisions – on behalf of in-scope funds","page_number":295,"box":{"x":117,"y":785,"width":744,"height":12}},{"id":"71085acd-4d3c-4c36-917d-b26b43e4ec12","block_type":"box","text":"11","page_number":295,"box":{"x":144,"y":815,"width":7,"height":5}},{"id":"258aa907-138b-46af-8014-79961b40ec4f","block_type":"box","text":"Aladdin","page_number":295,"box":{"x":170,"y":815,"width":44,"height":8}},{"id":"3b2acd9a-b13e-41dd-9529-85d769641cd3","block_type":"box","text":"®","page_number":295,"box":{"x":215,"y":814,"width":7,"height":6}},{"id":"2306b518-13de-4c7c-9f9e-4318ee4988cd","block_type":"box","text":"Climate is a suite of climate analytics including forward-looking scenario analysis and net zero alignment","page_number":295,"box":{"x":226,"y":815,"width":620,"height":10}},{"id":"475543ee-5720-4350-a909-147d5bc16f28","block_type":"box","text":"analytics. Aladdin","page_number":295,"box":{"x":170,"y":828,"width":103,"height":10}},{"id":"9bc51be3-2016-440f-9a65-2f0bc9df3779","block_type":"box","text":"®","page_number":295,"box":{"x":274,"y":827,"width":8,"height":6}},{"id":"d51d3b34-ac78-4ffd-b568-f3c11466d078","block_type":"box","text":"is a proprietary investment and risk management platform.","page_number":295,"box":{"x":286,"y":828,"width":345,"height":10}},{"id":"3d3792f8-38a3-4aa5-9ea4-2dc107c9b8f9","block_type":"box","text":"12","page_number":295,"box":{"x":144,"y":841,"width":8,"height":5}},{"id":"60496262-dc97-4a57-a225-bb5f8a44edba","block_type":"box","text":"These Guidelines are not intended to limit the analysis of individual issues at specific companies or provide a guide as","page_number":295,"box":{"x":170,"y":841,"width":701,"height":9}},{"id":"9a42b0b1-a078-4ac4-83dc-16d55b25fc72","block_type":"box","text":"to how the dedicated team will engage and/or vote in every instance. The Guidelines are applied by the dedicated team","page_number":295,"box":{"x":170,"y":854,"width":708,"height":9}},{"id":"54975548-3d28-442b-b1e3-be042c5eb772","block_type":"box","text":"with discretion, on a case-by-case basis, taking into consideration the range of issues and facts specific to the","page_number":295,"box":{"x":170,"y":867,"width":651,"height":9}},{"id":"402ed573-a483-45d1-9815-5ec64a54e510","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":295,"box":{"x":170,"y":880,"width":403,"height":9}},{"id":"c32dc800-0429-4da0-94fa-891530fabf27","block_type":"box","text":"BlackRock Investment Stewardship","page_number":295,"box":{"x":117,"y":909,"width":262,"height":11}},{"id":"a941945a-9529-4cb7-a15d-e72bbe706f67","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines |","page_number":295,"box":{"x":490,"y":909,"width":375,"height":11}},{"id":"505ee25b-8667-42b1-af0a-de11a1be574a","block_type":"box","text":"5","page_number":295,"box":{"x":875,"y":910,"width":8,"height":8}},{"id":"6a508d6d-a5d3-4e06-82da-10cee96ea81a","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":295,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3f0ca5d8-a4e4-46b9-9a24-8bd0c7f37391","block_type":"box","text":"and SMAs – on similar proposals included on different companies’ shareholder meeting agendas may","page_number":296,"box":{"x":116,"y":87,"width":760,"height":12}},{"id":"405608ca-cde9-496f-9d08-1f715780787c","block_type":"box","text":"vary depending on company, sector, or market-specific circumstances.","page_number":296,"box":{"x":116,"y":102,"width":530,"height":13}},{"id":"ea7f37a4-42cf-464e-b18d-0b8862ae41be","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines,","page_number":296,"box":{"x":117,"y":134,"width":750,"height":12}},{"id":"560ade0b-64fa-4bc5-901d-cbde0504f5c7","block_type":"box","text":"the dedicated team will look to the companies to demonstrate the following:","page_number":296,"box":{"x":116,"y":149,"width":564,"height":12}},{"id":"46cff2d1-a765-4f3b-8bb7-f87b39f032d3","block_type":"box","text":"Corporate Disclosures","page_number":296,"box":{"x":116,"y":180,"width":180,"height":12}},{"id":"2a530d35-b23b-4593-a060-02a8c0e3b9a4","block_type":"box","text":"13","page_number":296,"box":{"x":297,"y":180,"width":11,"height":6}},{"id":"b90c60c8-e38a-4e10-8a4f-6f090b76e2ad","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient","page_number":296,"box":{"x":117,"y":211,"width":710,"height":12}},{"id":"930ff430-b903-4e20-ab26-fb41b454d04a","block_type":"box","text":"disclosure to assess whether the company’s strategy is aligned with the low-carbon transition. As a","page_number":296,"box":{"x":116,"y":227,"width":740,"height":12}},{"id":"b6817f9f-bf03-4339-a4e1-539f9c26b110","block_type":"box","text":"general point, the team looks to companies that are important to the transition to a low-carbon","page_number":296,"box":{"x":116,"y":242,"width":702,"height":12}},{"id":"da3c1bf5-fd3f-4aad-b42f-cca9a51b638e","block_type":"box","text":"economy to explain the strategy and governance frameworks that they have determined most","page_number":296,"box":{"x":116,"y":258,"width":700,"height":12}},{"id":"31df0a1d-192a-444c-a648-82cc90d92c9f","block_type":"box","text":"appropriate, which may include:","page_number":296,"box":{"x":116,"y":273,"width":241,"height":12}},{"id":"9db53be4-9165-4521-95a9-4022ce155447","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit","page_number":296,"box":{"x":150,"y":304,"width":688,"height":12}},{"id":"59d16d6e-9554-425f-a036-23e17516e13d","block_type":"box","text":"average global temperature rise to 1.5°C above pre-industrial levels. This would typically","page_number":296,"box":{"x":184,"y":320,"width":661,"height":12}},{"id":"c6dae9b4-50d0-4058-914d-9e6078b03313","block_type":"box","text":"include a long-term strategy to achieve net-zero GHG emissions by 2050, with appropriate","page_number":296,"box":{"x":184,"y":335,"width":676,"height":12}},{"id":"612d6110-4afe-4899-a57c-25c9210cec99","block_type":"box","text":"near- and medium-term milestones to assess their progress.","page_number":296,"box":{"x":184,"y":351,"width":453,"height":12}},{"id":"38dc5d0c-e5a2-4d25-9b0a-090373deedf7","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data","page_number":296,"box":{"x":150,"y":374,"width":724,"height":12}},{"id":"3f00b862-f90b-474a-b99e-2d22ab537ce0","block_type":"box","text":"supports investors in making informed decisions. The International Sustainability Standards","page_number":296,"box":{"x":184,"y":389,"width":683,"height":12}},{"id":"844b2999-08e3-43fb-a95b-f8d2646be042","block_type":"box","text":"Board (ISSB) standards, IFRS S1 and S2, represent one such approach to standardization","page_number":296,"box":{"x":184,"y":405,"width":678,"height":12}},{"id":"1a1d7218-74b2-499b-94b6-ecad276eb54d","block_type":"box","text":"that the dedicated team finds useful in its analysis.","page_number":296,"box":{"x":183,"y":420,"width":374,"height":12}},{"id":"4791a52a-75b8-42f8-bb6d-c5cbc1a233b5","block_type":"box","text":"14","page_number":296,"box":{"x":559,"y":420,"width":11,"height":7}},{"id":"aa65ceac-8231-43e6-9a99-6e76b3f688b8","block_type":"box","text":",","page_number":296,"box":{"x":572,"y":428,"width":8,"height":4}},{"id":"95c7f745-57d5-4113-abbc-096da8e7176a","block_type":"box","text":"15","page_number":296,"box":{"x":581,"y":420,"width":11,"height":7}},{"id":"a39d1694-f13e-43b3-9550-5e8fb8e9c5fa","block_type":"box","text":"IFRS S1 addresses the general","page_number":296,"box":{"x":592,"y":420,"width":244,"height":12}},{"id":"6ee469d9-a020-4410-800e-d14cec632b19","block_type":"box","text":"requirements of sustainability reporting and IFRS S2 sets out the disclosures that provide","page_number":296,"box":{"x":184,"y":436,"width":667,"height":12}},{"id":"0e71c075-a76d-4216-a732-9e768b0e2be0","block_type":"box","text":"investors with decision-useful information about a company’s most significant climate- and","page_number":296,"box":{"x":184,"y":451,"width":674,"height":12}},{"id":"1a61b8de-2ae3-433a-9f7b-e15890846186","block_type":"box","text":"low-carbon transition-related risks and opportunities. This includes receiving independent,","page_number":296,"box":{"x":184,"y":467,"width":671,"height":12}},{"id":"ff0b27bc-10de-46b4-9ce6-47501cfe1869","block_type":"box","text":"third-party assurances, as audit and assurance standards are developed.","page_number":296,"box":{"x":183,"y":482,"width":549,"height":12}},{"id":"62a893cb-d55c-44c8-9be0-851b49d25b65","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions.","page_number":296,"box":{"x":150,"y":506,"width":536,"height":12}},{"id":"194dd062-13c9-4211-86e4-2fc8b87594f5","block_type":"box","text":"16","page_number":296,"box":{"x":689,"y":506,"width":10,"height":6}},{"id":"96c1212e-da71-43ec-94aa-43521b82b5f4","block_type":"box","text":",","page_number":296,"box":{"x":701,"y":514,"width":8,"height":3}},{"id":"48716ebe-ced4-4260-b9b5-36e9378c22bd","block_type":"box","text":"17","page_number":296,"box":{"x":710,"y":506,"width":11,"height":6}},{"id":"3052df2f-8477-4032-b313-486e14f9f347","block_type":"box","text":"In addition, the","page_number":296,"box":{"x":721,"y":506,"width":120,"height":11}},{"id":"9fa8a98f-0e97-466f-946e-a55bbd8f8ae1","block_type":"box","text":"dedicated team looks to companies to disclose their emissions reduction targets for scope 1","page_number":296,"box":{"x":184,"y":521,"width":687,"height":12}},{"id":"2bd05871-ace4-4962-ba7e-208c1ea17e5a","block_type":"box","text":"and 2 emissions, science-based where possible. The team welcomes disclosure of targets or","page_number":296,"box":{"x":184,"y":537,"width":695,"height":12}},{"id":"cc6188f2-5bee-4b42-9366-f8178ceecd97","block_type":"box","text":"13","page_number":296,"box":{"x":144,"y":572,"width":8,"height":5}},{"id":"6a55d664-38e5-4417-9c5b-617ea43c3cfe","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where reporting","page_number":296,"box":{"x":170,"y":572,"width":695,"height":10}},{"id":"a6f87153-2c13-4497-b52c-83593d399961","block_type":"box","text":"methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their business","page_number":296,"box":{"x":170,"y":585,"width":686,"height":10}},{"id":"16b53c49-f88b-4595-ab65-5b35692f09b9","block_type":"box","text":"models through the low-carbon transition may require forward-looking statements.","page_number":296,"box":{"x":170,"y":598,"width":485,"height":10}},{"id":"c06e5df9-39c4-4c57-ad07-e2a17beaa352","block_type":"box","text":"14","page_number":296,"box":{"x":144,"y":614,"width":8,"height":4}},{"id":"a98a5d53-3766-40e2-bfd6-a82e5b4412ab","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards (IFRS)","page_number":296,"box":{"x":170,"y":613,"width":666,"height":10}},{"id":"fe26c547-139e-40bc-ab94-57b393215b17","block_type":"box","text":"Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework and the","page_number":296,"box":{"x":171,"y":626,"width":712,"height":10}},{"id":"4a35d90e-7bbf-4143-9b03-b79ef159e1e0","block_type":"box","text":"standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":296,"box":{"x":170,"y":639,"width":649,"height":10}},{"id":"0cbebef1-c429-4a26-9e88-d2d392489f4b","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":296,"box":{"x":170,"y":652,"width":674,"height":10}},{"id":"4f8fc1b6-0792-45bb-84d2-d8265af8a8ac","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":296,"box":{"x":170,"y":665,"width":647,"height":10}},{"id":"28f18400-ff74-421b-b9ac-3cb605a9caf2","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":296,"box":{"x":171,"y":678,"width":312,"height":8}},{"id":"3d34c790-9d00-42cc-967e-dd382a1570fa","block_type":"box","text":"15","page_number":296,"box":{"x":144,"y":694,"width":8,"height":5}},{"id":"f943a8a3-eb04-4d71-b26b-fc5454fc69e2","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to doing","page_number":296,"box":{"x":170,"y":694,"width":694,"height":9}},{"id":"6f499261-dba1-4c5c-bc30-1666d1fcf429","block_type":"box","text":"so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":296,"box":{"x":170,"y":706,"width":651,"height":10}},{"id":"eb1a0ad0-d05b-4c45-8421-0660d4531ff4","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we ask","page_number":296,"box":{"x":170,"y":719,"width":698,"height":10}},{"id":"cff1c4cb-85e3-4ae0-8a24-3b3ff9300d71","block_type":"box","text":"that companies highlight the metrics that are industry- or company-specific. We also recognize that companies may be","page_number":296,"box":{"x":170,"y":732,"width":703,"height":10}},{"id":"461a9c16-9403-4dda-b418-e3deb1d8e756","block_type":"box","text":"phasing in reporting over several years. We do not prescribe timelines regarding when companies should make","page_number":296,"box":{"x":170,"y":745,"width":661,"height":10}},{"id":"0077022a-f843-49a8-9e41-cfaaf30494b4","block_type":"box","text":"sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of their","page_number":296,"box":{"x":170,"y":758,"width":664,"height":10}},{"id":"40a772d0-195f-4e3b-ba24-439dfd4fb730","block_type":"box","text":"shareholder meeting, to the best of their abilities, to provide investors with time to assess the data and make informed","page_number":296,"box":{"x":170,"y":771,"width":698,"height":10}},{"id":"f6be7744-7872-44c9-8d83-e15df2cd66e4","block_type":"box","text":"voting decisions.","page_number":296,"box":{"x":170,"y":784,"width":98,"height":10}},{"id":"504e3e41-034e-4ce4-b304-0aff02d8354a","block_type":"box","text":"16","page_number":296,"box":{"x":144,"y":800,"width":8,"height":4}},{"id":"ada7a39a-9598-4f73-9968-95ff1496c9b6","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":296,"box":{"x":171,"y":799,"width":685,"height":10}},{"id":"fca6505c-d59f-48c9-a581-c7a101646a9e","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in December","page_number":296,"box":{"x":170,"y":812,"width":708,"height":10}},{"id":"8a5c3e26-8e81-48b5-9804-3e051d036323","block_type":"box","text":"2025.","page_number":296,"box":{"x":170,"y":825,"width":32,"height":8}},{"id":"76f53200-3d2a-4b27-8b75-67058d0e9a4c","block_type":"box","text":"17","page_number":296,"box":{"x":144,"y":841,"width":8,"height":5}},{"id":"4ec5ca7d-8713-42ca-baf2-9840da5473cd","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":296,"box":{"x":171,"y":841,"width":680,"height":9}},{"id":"577f75d7-3b37-4326-816c-40cb319eba6e","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":296,"box":{"x":171,"y":854,"width":706,"height":9}},{"id":"095790eb-8b53-469f-92ce-602f1bde5a34","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":296,"box":{"x":170,"y":867,"width":677,"height":9}},{"id":"366076f1-c400-46c3-b438-70844d49fb9f","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":296,"box":{"x":170,"y":880,"width":650,"height":9}},{"id":"7ee3fac7-e7c2-44f2-bfdd-72e31d87e579","block_type":"box","text":"BlackRock Investment Stewardship","page_number":296,"box":{"x":117,"y":909,"width":262,"height":11}},{"id":"2aed5522-ba4e-4396-a148-c7e816cbf790","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines |","page_number":296,"box":{"x":490,"y":909,"width":375,"height":11}},{"id":"59c22f1d-3ef5-489d-9b52-039cfc24f5c3","block_type":"box","text":"6","page_number":296,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"4f68c1b9-ae42-4aeb-b3d8-daa1a2e8cb1d","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":296,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0fe138d9-a47a-4ddb-8028-01979e552d78","block_type":"box","text":"indicative goals, where companies have set them, for scope 3 emissions reductions. 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For some","page_number":297,"box":{"x":184,"y":180,"width":647,"height":12}},{"id":"97c18a0d-a4df-4900-a7e6-036de3f8cbf0","block_type":"box","text":"companies that play an important role in the low-carbon transition, scope 3 may represent","page_number":297,"box":{"x":184,"y":196,"width":671,"height":12}},{"id":"7e47470a-a244-4ce6-af28-cef7052af6d8","block_type":"box","text":"their only significant source of GHG emissions in the value chain. While we do not believe","page_number":297,"box":{"x":183,"y":211,"width":672,"height":12}},{"id":"dce1005d-03dc-4c9a-88b1-b8f6c459229f","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control,","page_number":297,"box":{"x":184,"y":227,"width":693,"height":12}},{"id":"b00fa683-8fa4-43d0-bce3-52884615b35e","block_type":"box","text":"where relevant, we look for disclosures on how the company approaches the low-carbon","page_number":297,"box":{"x":183,"y":242,"width":662,"height":12}},{"id":"8d4943ce-b312-45a5-9b37-dede9f8ba623","block_type":"box","text":"transition in these cases. This may include plans and targets to grow businesses that","page_number":297,"box":{"x":183,"y":258,"width":636,"height":12}},{"id":"b50b43e1-6f24-433b-9f5c-e88dff283b6a","block_type":"box","text":"contribute to real world decarbonization, forward-looking capital or procurement allocation","page_number":297,"box":{"x":184,"y":273,"width":670,"height":12}},{"id":"ea37c3b4-7e21-4708-b8db-15b0407a2741","block_type":"box","text":"plans to net-zero aligned activities or suppliers, and strategies to mitigate material transition","page_number":297,"box":{"x":184,"y":289,"width":684,"height":12}},{"id":"985b316d-3f39-4dbd-ab1d-57a428a848a0","block_type":"box","text":"risks.","page_number":297,"box":{"x":184,"y":304,"width":43,"height":10}},{"id":"766f72f4-55c3-4a78-98aa-17f01c7e3788","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical","page_number":297,"box":{"x":150,"y":327,"width":729,"height":12}},{"id":"76cfd6d9-572e-494d-9eba-29f2e01dd83b","block_type":"box","text":"risks – such as acute risks from extreme weather events or chronic risks from long-term shifts","page_number":297,"box":{"x":184,"y":343,"width":699,"height":12}},{"id":"79bfd1a2-33d8-4ee8-a0ce-aa6e578e71c2","block_type":"box","text":"in climate patterns – and how these risks could reasonably be expected to affect the","page_number":297,"box":{"x":184,"y":358,"width":629,"height":12}},{"id":"2646e1e9-0f7b-4500-9663-479080c59aa2","block_type":"box","text":"company’s operations, assets, or supply chains.","page_number":297,"box":{"x":184,"y":374,"width":361,"height":12}},{"id":"d2615184-3ada-4611-8362-e7676e5f372f","block_type":"box","text":"Transition plans","page_number":297,"box":{"x":118,"y":405,"width":132,"height":12}},{"id":"707d1785-9955-4eb3-a567-61b61cf40574","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their","page_number":297,"box":{"x":116,"y":436,"width":698,"height":12}},{"id":"05c8b666-e16b-4ef8-8160-2ac736cc69fa","block_type":"box","text":"low-carbon transition strategies. As defined by the ISSB, a transition plan “lays out the entity’s targets,","page_number":297,"box":{"x":117,"y":451,"width":761,"height":12}},{"id":"798244d0-68fd-40ee-b760-d586c96147d5","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as","page_number":297,"box":{"x":116,"y":467,"width":724,"height":12}},{"id":"c6e1d3f5-12bf-4416-83cc-3bae5a055ac2","block_type":"box","text":"reducing its greenhouse gas emissions” (see Appendix 1).","page_number":297,"box":{"x":117,"y":482,"width":430,"height":12}},{"id":"69428d38-ce09-4f31-a49f-e224f6912cb5","block_type":"box","text":"19","page_number":297,"box":{"x":550,"y":482,"width":10,"height":7}},{"id":"76eef0ea-7c79-435e-b337-eed8d61567cb","block_type":"box","text":"Work is also underway in a number of jurisdictions on establishing a common approach in a market to","page_number":297,"box":{"x":116,"y":513,"width":760,"height":12}},{"id":"169b0f49-73ad-47a2-906f-81d954c7b4af","block_type":"box","text":"corporate transition plans.","page_number":297,"box":{"x":116,"y":529,"width":192,"height":12}},{"id":"bb3840e5-7bf8-4d39-84c7-7210c08c52f0","block_type":"box","text":"20","page_number":297,"box":{"x":310,"y":529,"width":11,"height":6}},{"id":"a6da1988-31b0-4a62-9081-dff32a86911a","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans","page_number":297,"box":{"x":321,"y":529,"width":523,"height":12}},{"id":"07c82515-b85f-49dd-8b8e-49d3b06da7a4","block_type":"box","text":"highlights the convergence of reporting approaches.","page_number":297,"box":{"x":117,"y":544,"width":391,"height":12}},{"id":"c2dd922b-b6c6-4f73-9d92-f114cf3726e4","block_type":"box","text":"While the preparation of a transition plan, or lack thereof, is not, in itself, a voting issue, these","page_number":297,"box":{"x":116,"y":575,"width":697,"height":12}},{"id":"b907283b-f7b2-46ea-bb56-5411c7498105","block_type":"box","text":"disclosures typically provide valuable insights that inform the dedicated team’s approach to engaging","page_number":297,"box":{"x":116,"y":591,"width":754,"height":12}},{"id":"85cc83af-1ede-4418-8512-0e750024e751","block_type":"box","text":"and voting on matters related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":297,"box":{"x":116,"y":606,"width":761,"height":12}},{"id":"33d86454-802a-498d-8784-eb0104db4a89","block_type":"box","text":"Boards and directors","page_number":297,"box":{"x":117,"y":638,"width":173,"height":9}},{"id":"781cad51-8e25-4e43-b6f5-e11ec94d410e","block_type":"box","text":"An effective and well-functioning board that has appropriate governance structures to facilitate","page_number":297,"box":{"x":116,"y":668,"width":699,"height":12}},{"id":"a9f527e5-aaf4-4daf-a495-ad383af2ed15","block_type":"box","text":"oversight of a company’s management and strategic initiatives is critical to the company’s ability to","page_number":297,"box":{"x":116,"y":684,"width":731,"height":12}},{"id":"6e87f988-14bc-4793-96e0-431855bc84b3","block_type":"box","text":"18","page_number":297,"box":{"x":144,"y":722,"width":8,"height":5}},{"id":"0e9eccf8-55a1-48fd-b8e6-ee663d4a9482","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly traded","page_number":297,"box":{"x":170,"y":722,"width":707,"height":10}},{"id":"03096bd2-ebda-4de3-b169-d20895df6846","block_type":"box","text":"companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":297,"box":{"x":170,"y":735,"width":645,"height":10}},{"id":"7fa3b830-692d-4038-8603-3ccd4b4024b0","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":297,"box":{"x":170,"y":748,"width":686,"height":9}},{"id":"7b555d1d-a19d-4222-aacb-e163bdb8b57e","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":297,"box":{"x":170,"y":761,"width":663,"height":9}},{"id":"4615231f-ef6d-4ce0-82b5-b648a74c6ac8","block_type":"box","text":"material to their business models.","page_number":297,"box":{"x":170,"y":774,"width":199,"height":7}},{"id":"99064157-0274-4bfa-aa4a-5cc5e872c44a","block_type":"box","text":"19","page_number":297,"box":{"x":144,"y":789,"width":8,"height":5}},{"id":"5fbc1f65-4ddc-4e6a-8290-51b9b8064117","block_type":"box","text":"International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in December","page_number":297,"box":{"x":171,"y":789,"width":712,"height":10}},{"id":"fc31ce0a-9f38-4271-8d91-b34677df6d38","block_type":"box","text":"2025.","page_number":297,"box":{"x":170,"y":802,"width":32,"height":8}},{"id":"cd07fe22-0a91-4484-ab96-9de490dc9603","block_type":"box","text":"20","page_number":297,"box":{"x":143,"y":815,"width":9,"height":5}},{"id":"88da4014-578e-4f57-9e6d-8d02310a0311","block_type":"box","text":"More companies are developing such plans, and public policymakers in certain markets are signaling their intentions to","page_number":297,"box":{"x":171,"y":815,"width":705,"height":10}},{"id":"44809054-a57d-4e98-9874-675be815411f","block_type":"box","text":"require them or already have requirements in place, such as Australia, Brazil, and the European Union (please see the","page_number":297,"box":{"x":170,"y":828,"width":704,"height":10}},{"id":"705a6794-2e11-49ee-b20f-d7be987630da","block_type":"box","text":"International Transition Plan Network for information). BlackRock views transition plans as a method for a company to","page_number":297,"box":{"x":171,"y":841,"width":697,"height":9}},{"id":"c2758887-42b0-4a10-addf-2a7b0058eea8","block_type":"box","text":"both internally assess and externally communicate its long-term strategy, ambition, objectives, and actions to create","page_number":297,"box":{"x":170,"y":854,"width":687,"height":9}},{"id":"5cd7ae5e-7972-4d98-8639-6fc8e99ebbb0","block_type":"box","text":"financial value through the global transition towards a low-carbon economy. Across the landscape there remains","page_number":297,"box":{"x":170,"y":867,"width":666,"height":9}},{"id":"af8dc35b-85da-437a-90bf-6e04c5698b06","block_type":"box","text":"divergence on the objectives of such plans and the details they should contain. Website accessed in December 2025.","page_number":297,"box":{"x":170,"y":880,"width":697,"height":9}},{"id":"5ae6b31f-8901-4007-8e27-7bdbe42d7f69","block_type":"box","text":"BlackRock Investment Stewardship","page_number":297,"box":{"x":117,"y":909,"width":262,"height":11}},{"id":"84ba7145-8178-4b8d-9711-70b30e3dbed3","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines |","page_number":297,"box":{"x":490,"y":909,"width":375,"height":11}},{"id":"16201be4-9d04-4e74-a35f-a1b4272fc352","block_type":"box","text":"7","page_number":297,"box":{"x":875,"y":910,"width":8,"height":8}},{"id":"9edad8ce-aaf9-4be4-ae26-794baefa9678","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":297,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"fe94b27a-0b9f-41fd-a974-343559fa4ff7","block_type":"box","text":"deliver on its low-carbon transition strategy. 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The Guidelines consider the whole board to","page_number":298,"box":{"x":150,"y":149,"width":719,"height":12}},{"id":"682a2159-c2ca-4954-a1f7-ae47d3c29c7b","block_type":"box","text":"have responsibility for oversight of the company’s long-term strategy, including those aspects","page_number":298,"box":{"x":150,"y":165,"width":696,"height":12}},{"id":"48c9d5df-66f8-4840-aedf-3d65fac2e74c","block_type":"box","text":"related to the transition to a low-carbon economy.","page_number":298,"box":{"x":150,"y":180,"width":373,"height":12}},{"id":"7fb1b90c-32e5-4157-8baf-0198d5649cfc","block_type":"box","text":"• Management has established a robust low-carbon transition framework and long-term strategy,","page_number":298,"box":{"x":125,"y":203,"width":735,"height":12}},{"id":"d872e15b-61ad-4d98-b75d-2a1d6001a019","block_type":"box","text":"with clear accountability for delivery by senior executives.","page_number":298,"box":{"x":149,"y":219,"width":432,"height":12}},{"id":"8708d941-7095-49c4-9437-9b7c20191f4c","block_type":"box","text":"• The capital management strategy explains how the company allocates investments to (traditional","page_number":298,"box":{"x":125,"y":242,"width":749,"height":12}},{"id":"f7ea8ab7-4ca9-4d80-84d8-b34a074a5742","block_type":"box","text":"and next generation) business lines and innovation, and returns cash to shareholders, consistent","page_number":298,"box":{"x":150,"y":258,"width":724,"height":12}},{"id":"5fe85635-aae3-434e-be4a-6220136b3d80","block_type":"box","text":"with the company’s stated low-carbon transition strategy.","page_number":298,"box":{"x":149,"y":273,"width":428,"height":12}},{"id":"4883004e-bd5b-4b37-96d4-d45e298c6999","block_type":"box","text":"• The climate and low-carbon transition risks most likely to significantly impact the business are","page_number":298,"box":{"x":125,"y":296,"width":724,"height":12}},{"id":"bf8eb2a6-c5cd-417c-994c-90c7404cc8d0","block_type":"box","text":"integrated into the company’s enterprise risk management processes and reporting.","page_number":298,"box":{"x":150,"y":312,"width":627,"height":12}},{"id":"224b27c5-dc9d-4714-a80f-02f5652172e4","block_type":"box","text":"• The company has set scope 1 and 2 GHG emissions reduction targets, science-based and","page_number":298,"box":{"x":125,"y":335,"width":704,"height":12}},{"id":"6e1ee87f-b2af-4b64-b1ba-b3d36865582b","block_type":"box","text":"independently verified where possible, against a baseline, that are consistent with the ambition to","page_number":298,"box":{"x":150,"y":351,"width":726,"height":12}},{"id":"7f2b3b46-bf96-49d9-986c-c8ea32a34553","block_type":"box","text":"limit average global temperature rise to no more than 1.5°C above pre-industrial levels.","page_number":298,"box":{"x":150,"y":366,"width":651,"height":12}},{"id":"b7784bf2-905b-4246-8384-9d976278f541","block_type":"box","text":"• There is a clear link between the company’s scope 1 and 2 GHG emissions reduction targets over","page_number":298,"box":{"x":125,"y":389,"width":757,"height":12}},{"id":"7a43975e-308e-43f2-b754-bbe1a4503202","block_type":"box","text":"time and its long-term low-carbon transition strategy.","page_number":298,"box":{"x":150,"y":405,"width":395,"height":12}},{"id":"3cee6442-ecd8-4062-91c0-268087f48bea","block_type":"box","text":"• The company is monitoring its most significant scope 3 emissions and disclosing these where it is","page_number":298,"box":{"x":125,"y":428,"width":754,"height":12}},{"id":"d8bad102-c1fa-4a71-af80-e6a2ca420ed6","block_type":"box","text":"confident in the data. Given forthcoming regulatory requirements in certain jurisdictions, some","page_number":298,"box":{"x":150,"y":444,"width":700,"height":12}},{"id":"9303c5a7-2fa9-4b3b-880a-1f20c0218eef","block_type":"box","text":"companies are voluntarily disclosing scope 3 emissions reductions targets and plans, setting out","page_number":298,"box":{"x":150,"y":459,"width":720,"height":12}},{"id":"2db99b48-469d-4d85-990c-157b3d4d02d1","block_type":"box","text":"how they are working on decarbonization with the different constituents in their value chain.","page_number":298,"box":{"x":150,"y":475,"width":682,"height":12}},{"id":"31887e54-5fbf-44d0-865e-1f3267cf71a9","block_type":"box","text":"21","page_number":298,"box":{"x":833,"y":475,"width":10,"height":6}},{"id":"9bed48a9-51a2-4272-a5a8-e0f9f4c88ef3","block_type":"box","text":"• The company’s governance and oversight processes for managing material risks associated with","page_number":298,"box":{"x":125,"y":498,"width":749,"height":12}},{"id":"b9a328df-03f7-4857-9342-b55c1d866228","block_type":"box","text":"corporate political activities including applicable policies and procedures where relevant.","page_number":298,"box":{"x":150,"y":514,"width":652,"height":11}},{"id":"cb311261-f939-40e6-bb3c-ab43f4668f23","block_type":"box","text":"22","page_number":298,"box":{"x":804,"y":513,"width":11,"height":7}},{"id":"0bf93454-fe2c-4a14-9bf5-a168ea2e78cc","block_type":"box","text":"The","page_number":298,"box":{"x":816,"y":514,"width":38,"height":9}},{"id":"81d31487-43f4-4a20-abcc-7dffb50cdf77","block_type":"box","text":"dedicated team looks for public policy engagement to be consistent with a company’s stated","page_number":298,"box":{"x":150,"y":529,"width":689,"height":12}},{"id":"0691b181-89ed-4b9c-825f-b9e5a7436df9","block_type":"box","text":"strategic policy objectives, including those related to the low-carbon transition.","page_number":298,"box":{"x":150,"y":545,"width":584,"height":11}},{"id":"112534a2-8756-4f8f-8929-3758b18ca01d","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":298,"box":{"x":118,"y":576,"width":463,"height":11}},{"id":"c5fa5397-7220-41bd-a3c6-d0cb6bd13677","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally supports non-executive directors","page_number":298,"box":{"x":117,"y":606,"width":726,"height":12}},{"id":"bf066216-5c85-454f-8602-1182e0fa3011","block_type":"box","text":"standing for election where, in its assessment based on company disclosures and engagement, a","page_number":298,"box":{"x":116,"y":622,"width":729,"height":12}},{"id":"11ada3ef-8bc8-4b42-b482-3841389d996f","block_type":"box","text":"company is executing on its commitment to align with the transition to a low-carbon economy, as","page_number":298,"box":{"x":116,"y":638,"width":722,"height":11}},{"id":"700cf76b-7a36-49fc-a0ba-12c6ef48ae76","block_type":"box","text":"defined above. Where the dedicated team determines this is not the case, it may vote against the","page_number":298,"box":{"x":116,"y":653,"width":727,"height":12}},{"id":"46cd9389-588c-41b7-979a-011e0a208edf","block_type":"box","text":"election of one or more directors who the team identifies as having the most responsibility for the issue.","page_number":298,"box":{"x":116,"y":668,"width":766,"height":12}},{"id":"cf725177-06f3-4e49-a1be-d4fc11c0ef8f","block_type":"box","text":"The directors most likely to be in focus are the chair of the board committee with low-carbon transition,","page_number":298,"box":{"x":116,"y":684,"width":759,"height":12}},{"id":"98fa7c64-cf45-4911-ba8d-f707abd13d12","block_type":"box","text":"climate or sustainability risk oversight responsibilities, other members of the relevant committee, the","page_number":298,"box":{"x":116,"y":699,"width":741,"height":13}},{"id":"166c3098-95e8-42df-8f0c-2de97968ffb5","block_type":"box","text":"lead independent director or the non-executive chair of the board. In certain markets, the team may","page_number":298,"box":{"x":117,"y":715,"width":736,"height":12}},{"id":"a59a18ff-4a03-41f4-b4c1-116e44821010","block_type":"box","text":"withhold support for the discharge of the supervisory board or equivalent and/or board reports.","page_number":298,"box":{"x":116,"y":730,"width":699,"height":13}},{"id":"8e403177-79fe-4bad-bd1a-7b44ccbe773e","block_type":"box","text":"23","page_number":298,"box":{"x":817,"y":731,"width":11,"height":6}},{"id":"1560ea0b-5551-4e82-bb90-7dab46f0bd83","block_type":"box","text":"21","page_number":298,"box":{"x":143,"y":758,"width":8,"height":5}},{"id":"9856097f-999b-4afa-a8c8-da27fdb37cc4","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":298,"box":{"x":171,"y":758,"width":685,"height":10}},{"id":"fc4bc9fa-2024-4f06-9641-d8a1c6774464","block_type":"box","text":"paper “Scope for improvement: Solving the Scope 3 conundrum.” Their research indicates that there are 2-3 material","page_number":298,"box":{"x":170,"y":771,"width":692,"height":10}},{"id":"8d2a46bb-4e94-452e-8414-e80a74cf3f08","block_type":"box","text":"scope 3 GHG emissions categories by sector. The research uses a definition of materiality from the GHG Protocol,","page_number":298,"box":{"x":170,"y":784,"width":679,"height":10}},{"id":"d0a381b8-c3d6-45da-b06d-3825177df359","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, that offer","page_number":298,"box":{"x":170,"y":797,"width":706,"height":10}},{"id":"3114bbbf-b098-47ae-ba8c-9a2a07a7f232","block_type":"box","text":"the most significant GHG reduction opportunities and are most relevant to the company’s business goals.” Website","page_number":298,"box":{"x":170,"y":810,"width":681,"height":9}},{"id":"4538df56-c426-4bbf-b8f3-5a1b786f1754","block_type":"box","text":"accessed in December 2025.","page_number":298,"box":{"x":170,"y":823,"width":173,"height":7}},{"id":"6e5d3937-b078-483b-97d3-5ffb8f6b3d1e","block_type":"box","text":"22","page_number":298,"box":{"x":143,"y":838,"width":9,"height":5}},{"id":"ef392714-e9bb-4c17-80e7-a30a83ccb68b","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including trade","page_number":298,"box":{"x":170,"y":838,"width":694,"height":10}},{"id":"6b6c4342-c65e-4025-8665-e60018083a67","block_type":"box","text":"association memberships), and corporate political contributions.","page_number":298,"box":{"x":170,"y":851,"width":378,"height":10}},{"id":"f494c5ab-a6d9-4449-8009-6c2cb820d803","block_type":"box","text":"23","page_number":298,"box":{"x":143,"y":867,"width":9,"height":5}},{"id":"2971af03-1307-4053-baab-79866db5bb95","block_type":"box","text":"Board report votes are generally advisory and relate to reports issued by the board of directors that may contain","page_number":298,"box":{"x":171,"y":867,"width":661,"height":9}},{"id":"e78d4dde-a7b0-49e6-8429-73ab785bb1e8","block_type":"box","text":"information on a company’s sustainability efforts, operational resilience, or financial condition, among others.","page_number":298,"box":{"x":170,"y":880,"width":643,"height":9}},{"id":"6269cc10-ee3a-42e3-820e-d470e08db7d6","block_type":"box","text":"BlackRock Investment Stewardship","page_number":298,"box":{"x":117,"y":909,"width":262,"height":11}},{"id":"446359fb-99d3-4532-b451-de2e71da1c9b","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines |","page_number":298,"box":{"x":490,"y":909,"width":375,"height":11}},{"id":"2c87cbc2-dd31-45ac-b360-c19b90c92dd2","block_type":"box","text":"8","page_number":298,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"2d8abd0e-3260-42d1-b919-5b4d692a0ef6","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":298,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2725fed7-8268-478c-8f68-716ff6d55673","block_type":"box","text":"Where the dedicated team has not supported director elections over climate concerns in a prior year,","page_number":299,"box":{"x":116,"y":87,"width":754,"height":12}},{"id":"5a86ecb3-a8c8-44ac-8440-72e28dd96dda","block_type":"box","text":"and the company has not subsequently made progress towards aligning with the transition to a","page_number":299,"box":{"x":116,"y":103,"width":709,"height":12}},{"id":"a97902ec-279c-4630-9677-45601fe001cc","block_type":"box","text":"low-carbon economy, the team may escalate by not supporting the re-election of additional responsible","page_number":299,"box":{"x":117,"y":118,"width":769,"height":12}},{"id":"a72e3767-0c7b-46d9-b01f-eb06245b36e8","block_type":"box","text":"directors.","page_number":299,"box":{"x":116,"y":134,"width":67,"height":9}},{"id":"5265516e-8dfa-42e5-8aed-f9fba8239b71","block_type":"box","text":"24","page_number":299,"box":{"x":185,"y":134,"width":12,"height":6}},{"id":"8d9a5d94-13ae-4009-886e-bcae7f910c29","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":299,"box":{"x":117,"y":165,"width":581,"height":12}},{"id":"1089ebe7-68b1-4c15-83b1-d37556642b00","block_type":"box","text":"In certain markets, company management may submit proposals – commonly referred to as “Say on","page_number":299,"box":{"x":117,"y":196,"width":749,"height":12}},{"id":"9ee8e8db-91c6-4a86-8386-2aaf12772947","block_type":"box","text":"Climate” – seeking shareholder approval of their climate action plans or progress reports. 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When the dedicated team votes in support of a","page_number":299,"box":{"x":116,"y":459,"width":748,"height":12}},{"id":"615db646-fc7d-46f0-90f3-621e205a23cc","block_type":"box","text":"proposal, it is not necessarily endorsing every element of the proposal or the reasoning, objectives, or","page_number":299,"box":{"x":117,"y":475,"width":759,"height":12}},{"id":"c86da485-e35c-4d0e-ab90-998e77dedf19","block_type":"box","text":"supporting statement of the proponent.","page_number":299,"box":{"x":116,"y":490,"width":294,"height":12}},{"id":"01d4f363-d5d5-44be-aa20-329193b6770b","block_type":"box","text":"In addition to financial materiality, the Guidelines consider the proposal’s relevance to the company’s","page_number":299,"box":{"x":117,"y":521,"width":752,"height":12}},{"id":"7f61d64d-3045-4074-8994-12ed83471790","block_type":"box","text":"low-carbon transition strategy and targets. 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Clear disclosure also","page_number":300,"box":{"x":116,"y":296,"width":763,"height":12}},{"id":"8bad8308-babe-4c16-aa34-488bcd039af4","block_type":"box","text":"helps investors assess whether pay structures are consistent with long-term climate strategy and risk","page_number":300,"box":{"x":117,"y":312,"width":754,"height":12}},{"id":"6f8da330-8437-4440-b62d-92a47e8be618","block_type":"box","text":"management.","page_number":300,"box":{"x":117,"y":328,"width":106,"height":11}},{"id":"27a87bf9-e07d-48f5-99a1-0aba51c760c0","block_type":"box","text":"Auditors and audit-related issues","page_number":300,"box":{"x":116,"y":366,"width":271,"height":10}},{"id":"e58dff3d-0a74-42c1-884f-eb6107c2fbc0","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the","page_number":300,"box":{"x":117,"y":397,"width":742,"height":12}},{"id":"bbf3c839-c79a-4d85-88b5-9628e52c500a","block_type":"box","text":"dedicated team is interested in understanding whether the company considers and, if relevant,","page_number":300,"box":{"x":116,"y":413,"width":706,"height":12}},{"id":"39d1ba1d-9325-451c-ab85-840ead9de55a","block_type":"box","text":"quantifies, and accounts for material climate-related risks in its financial statements, including if the","page_number":300,"box":{"x":116,"y":428,"width":739,"height":12}},{"id":"4812fcbe-bdfa-4324-95cd-cfd11037fd37","block_type":"box","text":"company explains such risks within the context of its audit report. The team notes that assurance of","page_number":300,"box":{"x":116,"y":444,"width":744,"height":12}},{"id":"927f727c-315c-402b-8252-bc8fa49205fe","block_type":"box","text":"corporate disclosures related to climate risk and the transition to a low-carbon economy is still nascent.","page_number":300,"box":{"x":116,"y":459,"width":769,"height":12}},{"id":"f67b36ce-822f-4bbe-8344-b1055c584287","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":300,"box":{"x":117,"y":498,"width":508,"height":12}},{"id":"18d43442-9bcf-4624-8f26-9ab782e6cedc","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on","page_number":300,"box":{"x":116,"y":529,"width":753,"height":12}},{"id":"1853baae-f407-41d5-99b2-2e6f9ff0fb9d","block_type":"box","text":"climate-related factors under these Guidelines where a transaction may significantly alter a company’s","page_number":300,"box":{"x":116,"y":544,"width":764,"height":12}},{"id":"52f83c6d-c455-4534-90f2-4e7e45789790","block_type":"box","text":"climate strategy or a shareholder activist has proposed governance, strategic or operational changes","page_number":300,"box":{"x":116,"y":560,"width":754,"height":12}},{"id":"3422ab4f-6e12-46b4-bcb2-47e3e62dff7c","block_type":"box","text":"that may impact its climate strategy. The dedicated team does not promote changes in corporate","page_number":300,"box":{"x":116,"y":576,"width":723,"height":11}},{"id":"954cbd41-908a-4c82-a6bd-e355d33e9762","block_type":"box","text":"control or engage in shareholder activism.","page_number":300,"box":{"x":116,"y":591,"width":317,"height":12}},{"id":"5e3ae032-9083-4745-91e3-5006d73da406","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":300,"box":{"x":116,"y":630,"width":560,"height":12}},{"id":"54c7d2d7-7662-4394-ab06-df9588e2aff6","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other","page_number":300,"box":{"x":117,"y":661,"width":730,"height":12}},{"id":"144e88b1-7b12-4904-8c9d-ef619de555f6","block_type":"box","text":"material sustainability-related risks and opportunities that may be relevant to a company’s business","page_number":300,"box":{"x":117,"y":676,"width":735,"height":12}},{"id":"eb3be4bb-2acb-4c8c-8384-da70a54dcedd","block_type":"box","text":"model and long-term financial performance. These include a company’s impacts or dependencies on","page_number":300,"box":{"x":117,"y":692,"width":746,"height":12}},{"id":"4e50f7dd-2dc9-459f-aba8-06923c9352e9","block_type":"box","text":"natural capital and key stakeholders.","page_number":300,"box":{"x":117,"y":707,"width":270,"height":12}},{"id":"6009fe70-f627-407e-892d-b0b90eb5f03c","block_type":"box","text":"26","page_number":300,"box":{"x":389,"y":707,"width":12,"height":6}},{"id":"befc4645-25ce-4962-8acb-44aa46bb2e39","block_type":"box","text":"In the context of these Guidelines, the dedicated team may","page_number":300,"box":{"x":407,"y":707,"width":438,"height":12}},{"id":"07dc8673-fe42-4d78-aff0-4e68a2cbf136","block_type":"box","text":"engage companies to better understand how they are managing the impact on people (e.g.,","page_number":300,"box":{"x":116,"y":723,"width":679,"height":12}},{"id":"6b669ca7-2f8d-42a6-ad04-e1e5de4c9b16","block_type":"box","text":"employees, suppliers, customers and communities) of any strategic or operational changes they are","page_number":300,"box":{"x":116,"y":738,"width":742,"height":12}},{"id":"8fa13318-50e7-4175-8118-3e7f9c7a5347","block_type":"box","text":"making in relation to their transition to a low-carbon economy. Similarly, the team may engage","page_number":300,"box":{"x":117,"y":754,"width":697,"height":12}},{"id":"b47d75d4-d256-4f91-95b8-c44fbc48460b","block_type":"box","text":"companies that face risks and opportunities related to land use and deforestation, access to fresh","page_number":300,"box":{"x":116,"y":769,"width":723,"height":12}},{"id":"df18b528-ea57-40f0-8204-8b59556692ee","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":300,"box":{"x":116,"y":785,"width":716,"height":12}},{"id":"44c4df8f-9130-42a2-bfb5-4667d89ae092","block_type":"box","text":"26","page_number":300,"box":{"x":143,"y":867,"width":9,"height":5}},{"id":"6fcf7536-9ec0-452f-8bd5-4f220a1332cd","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":300,"box":{"x":171,"y":867,"width":669,"height":9}},{"id":"40a2483f-8d39-45f7-b678-8c88be275842","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":300,"box":{"x":170,"y":880,"width":387,"height":9}},{"id":"6ffecccc-ac86-4617-bf30-4a09d1a1edfd","block_type":"box","text":"BlackRock Investment Stewardship","page_number":300,"box":{"x":117,"y":909,"width":262,"height":11}},{"id":"2161661e-9050-47dc-a65b-8bc5f0fb71f2","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines |","page_number":300,"box":{"x":481,"y":909,"width":375,"height":11}},{"id":"4f7f2a2e-c778-4cd0-91bf-cf7c11a39bee","block_type":"box","text":"10","page_number":300,"box":{"x":867,"y":909,"width":16,"height":9}},{"id":"fc6d2bbb-1308-4261-b728-188b5f3f9cd8","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":300,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f2149047-1346-4ccd-b712-852486dda376","block_type":"box","text":"Appendix 1","page_number":301,"box":{"x":116,"y":87,"width":95,"height":12}},{"id":"5026f782-2666-4bb9-9a3d-6c07ee251a34","block_type":"box","text":"TERMINOLOGY","page_number":301,"box":{"x":437,"y":116,"width":130,"height":9}},{"id":"0d74b10d-2dff-4845-be9c-f7e015364af2","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":301,"box":{"x":116,"y":144,"width":593,"height":13}},{"id":"a1ac156e-7dde-4099-b924-156583065792","block_type":"box","text":"Climate risk","page_number":301,"box":{"x":116,"y":173,"width":95,"height":10}},{"id":"559e0dd1-791a-48e7-a580-6909e2757894","block_type":"box","text":": Includes physical risk, the increased risk to companies’ assets and activities caused by","page_number":301,"box":{"x":213,"y":173,"width":658,"height":12}},{"id":"0334fcaa-9225-4f79-a95e-7ee5b6c5ceed","block_type":"box","text":"the direct impact of changing weather patterns and natural catastrophes, and transition risk, the impact","page_number":301,"box":{"x":116,"y":189,"width":768,"height":12}},{"id":"bdb8b7ad-d164-4994-b1a1-a4552a2cd990","block_type":"box","text":"of the transition to a low-carbon economy on a company’s long-term profitability.","page_number":301,"box":{"x":116,"y":204,"width":601,"height":12}},{"id":"fa907f29-9c8c-4584-bbe0-92c29029f480","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”)","page_number":301,"box":{"x":116,"y":233,"width":492,"height":12}},{"id":"8455efed-f317-42ad-b951-d2fbf3e472e8","block_type":"box","text":": The global economic shift toward","page_number":301,"box":{"x":610,"y":233,"width":259,"height":12}},{"id":"35b4e72c-3338-48f0-b50e-a1ff2f66c9be","block_type":"box","text":"lower emissions across many sectors and business models. The economic transformation is being","page_number":301,"box":{"x":117,"y":248,"width":735,"height":13}},{"id":"2bea3985-ac8f-4f2d-b36a-4ec3fd771d8a","block_type":"box","text":"driven by changes in government policy, technology, and consumer and investor preferences, as well","page_number":301,"box":{"x":116,"y":264,"width":758,"height":12}},{"id":"df29d987-bcc9-4795-8b0a-d1e11ddd1641","block_type":"box","text":"as the physical effects of climate change (e.g., extreme weather), and can potentially have a material","page_number":301,"box":{"x":116,"y":279,"width":755,"height":13}},{"id":"16543b9a-5d2b-471e-9c51-54d7a40492b7","block_type":"box","text":"impact on clients’ investments and portfolios.","page_number":301,"box":{"x":117,"y":295,"width":337,"height":12}},{"id":"5b58aa9a-cd14-4a07-8f1c-393a59c8a705","block_type":"box","text":"Decarbonization","page_number":301,"box":{"x":117,"y":324,"width":128,"height":9}},{"id":"5f6ba3b1-7238-4182-8e49-5b02a2446950","block_type":"box","text":": the process of reducing or eliminating emissions of carbon dioxide (CO","page_number":301,"box":{"x":248,"y":324,"width":535,"height":12}},{"id":"59e9968a-baf9-4647-b891-943f1e02459f","block_type":"box","text":"2","page_number":301,"box":{"x":784,"y":330,"width":5,"height":6}},{"id":"018fbfd6-1bc5-45c6-bbfd-08552040c6b4","block_type":"box","text":") from","page_number":301,"box":{"x":790,"y":324,"width":48,"height":12}},{"id":"1dcfc31b-cbce-46d9-a9fa-62410771af5e","block_type":"box","text":"human activity and removing carbon currently in the atmosphere. This can be carried out by countries,","page_number":301,"box":{"x":117,"y":339,"width":763,"height":12}},{"id":"1d002408-a17c-45da-8c84-e9a396913d2b","block_type":"box","text":"companies and even individual consumers. 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Please see each Fund’s","page_number":305,"box":{"x":478,"y":450,"width":400,"height":13}},{"id":"51ef2f4c-b1ab-41fa-b16a-5651c20e361f","block_type":"box","text":"prospectuses (the “Prospectus”) and the “Investment Objective and","page_number":305,"box":{"x":45,"y":465,"width":468,"height":13}},{"id":"d4a0b827-919d-46be-af5c-95d79cb8c15c","block_type":"box","text":"Policies,” “Investment Objectives and Policies” or “Investment","page_number":305,"box":{"x":518,"y":465,"width":435,"height":13}},{"id":"b908386c-bafb-4ce7-9696-8fd9ca69e381","block_type":"box","text":"Strategies and Risks of the Fund” as applicable, section of Part I of this SAI for further information about each Fund’s investment","page_number":305,"box":{"x":46,"y":481,"width":897,"height":13}},{"id":"6c04d90d-2183-49a1-ae97-c42f3a927f26","block_type":"box","text":"policies and risks. Information contained in this section about","page_number":305,"box":{"x":45,"y":496,"width":428,"height":13}},{"id":"f099deff-06a5-4629-a555-64959ad4de43","block_type":"box","text":"the risks and considerations associated with a Fund’s investments","page_number":305,"box":{"x":478,"y":496,"width":453,"height":10}},{"id":"844061c4-2f48-42c7-8757-dcd50ff521a6","block_type":"box","text":"and/or investment strategies applies only to those Funds specifically identified in Part I of this SAI as making each type of","page_number":305,"box":{"x":46,"y":512,"width":838,"height":13}},{"id":"0693947c-8f97-406e-9402-8dfb1ed135ed","block_type":"box","text":"investment or using each investment strategy (each, a “Cov","page_number":305,"box":{"x":45,"y":527,"width":410,"height":13}},{"id":"21b838b5-6a94-4a13-9cd1-20fabbe3f245","block_type":"box","text":"ered Fund”). Information that does not apply to a Covered Fund does","page_number":305,"box":{"x":456,"y":527,"width":485,"height":13}},{"id":"b9ec9b2b-6b88-4737-8176-2d0af5f9e06c","block_type":"box","text":"not form a part of that Covered Fund’s SAI and should not be relied upon by investors in that Covered Fund.","page_number":305,"box":{"x":45,"y":543,"width":758,"height":13}},{"id":"34e04477-233d-4f15-8fb4-034a9076de0d","block_type":"box","text":"Only information that is clearly identified as applicable to","page_number":305,"box":{"x":46,"y":566,"width":400,"height":13}},{"id":"1baeed36-fde6-4956-a731-12e56cdbeba6","block_type":"box","text":"a Covered Fund is considered to form a part of that Covered Fund’s","page_number":305,"box":{"x":452,"y":566,"width":471,"height":13}},{"id":"07598092-7058-4e53-8fea-99b7489cb9e4","block_type":"box","text":"SAI.","page_number":305,"box":{"x":46,"y":582,"width":27,"height":10}},{"id":"46e48e08-022d-4cc6-9465-a79905611740","block_type":"box","text":"Bank Money Instruments.","page_number":305,"box":{"x":45,"y":605,"width":182,"height":13}},{"id":"e34cca34-d7c3-42ee-8190-0d2bce0d663e","block_type":"box","text":"Certain Funds may invest in U.S. dollar-denominated obligations of U.S. and foreign depository","page_number":305,"box":{"x":233,"y":605,"width":664,"height":13}},{"id":"8b159fce-862f-4c62-bab8-c09ec663121b","block_type":"box","text":"institutions, including commercial and savings banks, savings and","page_number":305,"box":{"x":45,"y":621,"width":456,"height":13}},{"id":"953ea4e6-2290-4afd-8c8d-98186aa56c55","block_type":"box","text":"loan associations, and other institutions. Such obligations","page_number":305,"box":{"x":506,"y":621,"width":398,"height":13}},{"id":"75a33f20-b18c-4d89-9f8a-7d92955d4f2f","block_type":"box","text":"include but are not limited to certificates of deposit, bankers’ acceptances, time deposits, bank notes and deposit notes. For","page_number":305,"box":{"x":45,"y":636,"width":851,"height":13}},{"id":"97ad7e07-b3c3-4a08-849c-0f2caf54d083","block_type":"box","text":"example, the obligations may be issued by (i) U.S. or foreign depos","page_number":305,"box":{"x":46,"y":652,"width":461,"height":13}},{"id":"c5949d35-2603-4c60-bed3-3abc92e3183b","block_type":"box","text":"itory institutions, (ii) foreign branches or subsidiaries of U.S.","page_number":305,"box":{"x":508,"y":652,"width":417,"height":13}},{"id":"78618c34-a1be-41f0-a89f-9c272721fecf","block_type":"box","text":"depository institutions (“Eurodollar” obligations), (iii) U.S. branches or subsidiaries of foreign depository institutions","page_number":305,"box":{"x":46,"y":667,"width":811,"height":13}},{"id":"aee752c6-d830-4829-98ab-fc1aef967757","block_type":"box","text":"(“Yankeedollar” obligations) or (iv) foreign branches or s","page_number":305,"box":{"x":46,"y":683,"width":399,"height":13}},{"id":"3f89c536-e0e9-4d43-b5b0-de68e1b6325e","block_type":"box","text":"ubsidiaries of foreign depository institutions. Eurodollar and","page_number":305,"box":{"x":446,"y":683,"width":419,"height":13}},{"id":"bfbae941-0fc9-4015-8aa4-7f3227d7d870","block_type":"box","text":"Yankeedollar obligations and obligations of branches or subsid","page_number":305,"box":{"x":45,"y":698,"width":439,"height":13}},{"id":"57b92683-2253-488e-acf4-bb04fe8c1431","block_type":"box","text":"iaries of foreign depository institutions may be general obligations","page_number":305,"box":{"x":484,"y":698,"width":458,"height":13}},{"id":"5cf475dd-80b4-49e1-a108-7b0752d31f9b","block_type":"box","text":"of the parent bank or may be limited to the issuing branch or subsidiary by the terms of the specific obligations or by government","page_number":305,"box":{"x":46,"y":714,"width":897,"height":13}},{"id":"b4f9872d-d1d4-42d9-b974-347b04730c54","block_type":"box","text":"regulation. Investments in obligations of foreign depository in","page_number":305,"box":{"x":45,"y":729,"width":428,"height":13}},{"id":"b7b33226-6acd-4cfa-bff1-6c777f0b4463","block_type":"box","text":"stitutions and their foreign branches and subsidiaries will only be","page_number":305,"box":{"x":474,"y":729,"width":451,"height":13}},{"id":"9b806a17-209b-4992-9c20-92e53dafa87a","block_type":"box","text":"made if determined to be of comparable quality to other investments permissible for each Fund. No Fund will invest more than","page_number":305,"box":{"x":45,"y":745,"width":883,"height":13}},{"id":"31213a0b-35b9-4de4-a446-e816aba47e81","block_type":"box","text":"25% of its total assets (taken at market value at the time of each investment) in obligations of foreign depository institutions and","page_number":305,"box":{"x":45,"y":760,"width":893,"height":13}},{"id":"f3310e91-134d-4116-a394-8d61bdc6caa8","block_type":"box","text":"their foreign branches and subsidiaries or in obligations of foreign","page_number":305,"box":{"x":45,"y":776,"width":458,"height":13}},{"id":"72f0ab7b-2112-41d1-b10d-0074a8f19f21","block_type":"box","text":"branches or subsidiaries of U.S. depository institutions that are","page_number":305,"box":{"x":508,"y":776,"width":434,"height":13}},{"id":"bdee0076-e97e-4da0-9b06-6076a9894358","block_type":"box","text":"not backed by the U.S. parent. The Funds treat bank money instruments issued by U.S. branches or subsidiaries of foreign banks","page_number":305,"box":{"x":45,"y":791,"width":891,"height":13}},{"id":"724569ed-0d3c-47fc-b6c3-f48c2dc6351a","block_type":"box","text":"as obligations issued by domestic banks (not subject to the 25% limitation) if the branch or subsidiary is subject to the same bank","page_number":305,"box":{"x":46,"y":807,"width":899,"height":13}},{"id":"3aba6b86-f086-48e8-b322-e7f473646e83","block_type":"box","text":"regulation as U.S. banks.","page_number":305,"box":{"x":45,"y":822,"width":171,"height":13}},{"id":"6bd1b5fd-bd30-4bbb-9f76-160be5f734ef","block_type":"box","text":"Eurodollar and Yankeedollar obligations, as well as other obliga","page_number":305,"box":{"x":45,"y":846,"width":447,"height":13}},{"id":"c459f642-372a-4b5b-8529-008d7a4e7fe6","block_type":"box","text":"tions of foreign depository institutions and short term obligations","page_number":305,"box":{"x":493,"y":846,"width":454,"height":13}},{"id":"6117f02f-7d02-436d-aaf0-63811f90f8f6","block_type":"box","text":"issued by other foreign entities, may involve additional investme","page_number":305,"box":{"x":45,"y":861,"width":444,"height":13}},{"id":"4dac4a23-8ef8-4cbe-8e4b-ba45bd83d75c","block_type":"box","text":"nt risks, including adverse political and economic developments,","page_number":305,"box":{"x":490,"y":861,"width":445,"height":13}},{"id":"bbf54c82-04ce-4ff9-adbf-07380ad282ca","block_type":"box","text":"the possible imposition of withholding taxes on interest income payab","page_number":305,"box":{"x":45,"y":877,"width":486,"height":13}},{"id":"594343a7-c549-4521-b60b-e54b3b7072b4","block_type":"box","text":"le on such obligations, the possible seizure or nationalization","page_number":305,"box":{"x":532,"y":877,"width":420,"height":13}},{"id":"620739dc-cf0a-41b0-b928-f948df4b3ff9","block_type":"box","text":"II-1","page_number":305,"box":{"x":487,"y":917,"width":24,"height":9}},{"id":"920b96cd-207f-4a53-a3d4-f9e451bbe3ce","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":305,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9b8915ed-f7f7-43d9-b1b5-c2a5f038e19d","block_type":"box","text":"of foreign deposits and the possible establishment of exchange cont","page_number":306,"box":{"x":46,"y":79,"width":465,"height":13}},{"id":"19fbae00-e2cb-49a8-8800-0c295b592248","block_type":"box","text":"rols or other foreign governmental laws or restrictions that","page_number":306,"box":{"x":512,"y":79,"width":407,"height":13}},{"id":"789f11bd-a0e7-4213-86a3-42f906cc2157","block_type":"box","text":"might adversely affect the repayment of principal and the payment of interest. The issuers of such obligations may not be subject","page_number":306,"box":{"x":45,"y":94,"width":891,"height":13}},{"id":"9326fc09-b359-46cf-97ca-a6b191c7b645","block_type":"box","text":"to U.S. regulatory requirements. Foreign branches or subs","page_number":306,"box":{"x":45,"y":110,"width":400,"height":13}},{"id":"4ca3aff2-7ab9-4481-9728-e91aecc7143c","block_type":"box","text":"idiaries of U.S. banks may be subject to less stringent reserve","page_number":306,"box":{"x":446,"y":110,"width":418,"height":13}},{"id":"c6a099a9-ebac-4223-b21b-8219410736ef","block_type":"box","text":"requirements than U.S. banks. U.S. branches or subsidiaries of foreign banks are subject to the reserve requirements of the states in","page_number":306,"box":{"x":45,"y":125,"width":906,"height":13}},{"id":"dd021b3e-43b1-4da2-add3-fa95de6748b9","block_type":"box","text":"which they are located. There may be less publicly available information about a U.S. branch or subsidiary of a foreign bank or","page_number":306,"box":{"x":45,"y":141,"width":884,"height":13}},{"id":"637e118d-3941-4918-aee0-dd4daff7714a","block_type":"box","text":"other issuer than about a U.S. bank or other issuer, and such entities may not be subject to the same accounting, auditing and","page_number":306,"box":{"x":46,"y":156,"width":869,"height":13}},{"id":"2b3b1bb2-aaee-467b-91b9-2da3803811f1","block_type":"box","text":"financial record keeping standards and requirements as U.S. issu","page_number":306,"box":{"x":45,"y":172,"width":446,"height":13}},{"id":"83cd50c7-303c-42f4-99a8-7064cf8343a6","block_type":"box","text":"ers. Evidence of ownership of Eurodollar and foreign obligations","page_number":306,"box":{"x":491,"y":172,"width":449,"height":13}},{"id":"21662f7b-a7cc-4830-9d64-6071985c38cb","block_type":"box","text":"may be held outside the United States, and the Funds may be subject to the risks associated with the holding of such property","page_number":306,"box":{"x":45,"y":187,"width":868,"height":13}},{"id":"e72df62e-1058-4ea3-a6a9-4cde71fe6557","block_type":"box","text":"overseas. Eurodollar and foreign obligations of the Funds held overseas will be held by foreign branches of each Fund’s custodian","page_number":306,"box":{"x":46,"y":203,"width":897,"height":13}},{"id":"5e34c341-d513-420b-adb1-e240cbf60b1a","block_type":"box","text":"or by other U.S. or foreign banks under subcustodian arrangements complying with the requirements of the Investment Company","page_number":306,"box":{"x":46,"y":218,"width":899,"height":13}},{"id":"d807a9a5-9853-4bd5-aba8-fe9e00241c23","block_type":"box","text":"Act.","page_number":306,"box":{"x":45,"y":234,"width":28,"height":10}},{"id":"c98381f9-ab82-49e7-9008-c679b340bfb1","block_type":"box","text":"The Manager will carefully consider the above factors in making investments in Eurodollar obligations, Yankeedollar obligations","page_number":306,"box":{"x":45,"y":257,"width":896,"height":13}},{"id":"72f2855f-94da-4660-9e2f-f91d9286c3ca","block_type":"box","text":"of foreign depository institutions and other foreign short term ob","page_number":306,"box":{"x":46,"y":273,"width":450,"height":12}},{"id":"fd2103d2-53c6-403a-84a5-54ef6996d571","block_type":"box","text":"ligations, and will not knowingly purchase obligations that, at","page_number":306,"box":{"x":497,"y":273,"width":431,"height":12}},{"id":"e6b076bb-6a36-470f-8f87-ee2137e2a361","block_type":"box","text":"the time of purchase, are subject to exchange controls or wit","page_number":306,"box":{"x":45,"y":288,"width":419,"height":13}},{"id":"77e5a0f3-3772-43b7-b559-15043d2115d1","block_type":"box","text":"hholding taxes. Generally, a Fund will limit its Yankeedollar","page_number":306,"box":{"x":464,"y":288,"width":420,"height":13}},{"id":"09ba89a6-bc01-46af-b7e3-24e94a780960","block_type":"box","text":"investments to obligations of banks organized in Canada, France, Germany, Japan, the Netherlands, Switzerland, the United","page_number":306,"box":{"x":45,"y":304,"width":864,"height":12}},{"id":"c3fc8db9-5fc3-4943-afc4-5666f539568d","block_type":"box","text":"Kingdom or other industrialized nations.","page_number":306,"box":{"x":45,"y":319,"width":282,"height":13}},{"id":"6e1fe62a-bd02-4a1d-928f-6eae852e5f46","block_type":"box","text":"Bank money instruments in which certain Funds invest must be","page_number":306,"box":{"x":46,"y":342,"width":438,"height":13}},{"id":"eee3b3fd-337f-44cd-9e65-48f83f51dbf6","block_type":"box","text":"issued by depository institutions with total assets of at least","page_number":306,"box":{"x":489,"y":342,"width":411,"height":13}},{"id":"f9899e4a-cf29-4793-b3cb-4ea6487817c9","block_type":"box","text":"$1 billion, except that such Funds may invest in certificates of deposit of smaller institutions if such certificates of deposit are","page_number":306,"box":{"x":46,"y":358,"width":863,"height":13}},{"id":"cd4bd22e-ca92-4681-8b9c-34e6d24931c0","block_type":"box","text":"Federally insured and if, as a result of such purchase, no more than 10% of total assets (taken at market value), are invested in","page_number":306,"box":{"x":45,"y":373,"width":878,"height":13}},{"id":"ee71a55f-787c-4185-8cb2-6d2c2a29c6bf","block_type":"box","text":"such certificates of deposit.","page_number":306,"box":{"x":46,"y":389,"width":185,"height":13}},{"id":"f1fdf1f6-0ef5-4372-97a2-df4b0fd4c066","block_type":"box","text":"Commercial Paper and Other Short Term Obligations","page_number":306,"box":{"x":46,"y":412,"width":382,"height":13}},{"id":"578c2c46-089f-40f0-bd7d-bfefa25c5453","block_type":"box","text":". Commercial paper (including variable amount master demand notes and","page_number":306,"box":{"x":429,"y":412,"width":512,"height":13}},{"id":"b8ca3fae-cf6c-4c64-8903-68a545682070","block_type":"box","text":"other variable rate securities, with or without forward features) refers to short term unsecured promissory notes issued by","page_number":306,"box":{"x":46,"y":428,"width":842,"height":12}},{"id":"8c29449b-9ff0-48a3-bee6-4c159bb44a41","block_type":"box","text":"corporations, partnerships, trusts or other entities to finance short term credit needs and non-convertible debt securities (","page_number":306,"box":{"x":45,"y":443,"width":836,"height":13}},{"id":"3d2c4ec5-f253-4f98-a2bf-4d01305c47bc","block_type":"box","text":"e.g.,","page_number":306,"box":{"x":883,"y":447,"width":26,"height":9}},{"id":"316bfe5c-2413-4173-87bb-957839c82b62","block_type":"box","text":"bonds and debentures) with no more than 397 days remaining to matur","page_number":306,"box":{"x":46,"y":459,"width":498,"height":12}},{"id":"6c77c05e-02d0-45e4-877b-54cc7ee4966f","block_type":"box","text":"ity at the date of purchase. Short term obligations issued","page_number":306,"box":{"x":544,"y":459,"width":391,"height":12}},{"id":"d03d9da2-2743-4f59-a5c2-3192bc6a31da","block_type":"box","text":"by trusts, corporations, partnerships or other entities include mortgage","page_number":306,"box":{"x":46,"y":474,"width":489,"height":13}},{"id":"78ea1841-521c-4a9b-9bb4-a4e2868c9a64","block_type":"box","text":"-related or asset-backed instruments, including pass-through","page_number":306,"box":{"x":536,"y":474,"width":417,"height":13}},{"id":"7e211462-8e85-44cc-8277-4cdeb155ab97","block_type":"box","text":"certificates such as participations in, or bonds and notes backed by, pools of mortgage, automobile, manufactured housing or","page_number":306,"box":{"x":45,"y":490,"width":870,"height":12}},{"id":"2a9fb5a3-a2e9-4a6b-a6aa-5dc8306c688d","block_type":"box","text":"other types of consumer loans; credit card or trade receivables or pools of mortgage-backed or asset-backed securities. These","page_number":306,"box":{"x":46,"y":505,"width":863,"height":13}},{"id":"5d1cdcdd-1d13-4b75-a443-8201073efc13","block_type":"box","text":"structured financings will be supported by sufficient collateral and","page_number":306,"box":{"x":46,"y":521,"width":458,"height":12}},{"id":"dd49396e-3b6d-4dc7-9e80-be089bc6fc82","block_type":"box","text":"other credit enhancements, including letters of credit, insurance,","page_number":306,"box":{"x":509,"y":521,"width":442,"height":12}},{"id":"70c1493b-06cd-4c05-9a17-021c6b5716cf","block_type":"box","text":"reserve funds and guarantees by third parties, to enable such inst","page_number":306,"box":{"x":45,"y":536,"width":448,"height":13}},{"id":"51232d04-be38-4c67-ba52-4bbda271dc5f","block_type":"box","text":"ruments to obtain a quality rating by a Nationally Recognized","page_number":306,"box":{"x":494,"y":536,"width":431,"height":13}},{"id":"598a9053-5809-4afc-b1e6-199eec3ac906","block_type":"box","text":"Statistical Rating Organization (“NRSRO”), if applicable. Some structured financings also use various types of swaps, among","page_number":306,"box":{"x":46,"y":552,"width":872,"height":12}},{"id":"c3d18887-e7a1-4018-baa0-b7ec70ae7f41","block_type":"box","text":"other things, to issue instruments that have interest rate, quality or maturity characteristics necessary or desirable for a Fund.","page_number":306,"box":{"x":46,"y":567,"width":863,"height":13}},{"id":"aaa85d32-9e92-4cfe-806f-9ea9ef884dc5","block_type":"box","text":"These swaps may include so-called credit default swaps that might depend for payment not only on the credit of a counterparty,","page_number":306,"box":{"x":45,"y":583,"width":888,"height":12}},{"id":"210816ff-d21e-4aa6-a2b5-5136c8bf48f3","block_type":"box","text":"but also on the obligations of another entity, the “reference entity.” Commercial paper is generally considered to be short-term","page_number":306,"box":{"x":46,"y":598,"width":879,"height":13}},{"id":"8d42db11-6b88-411a-a430-188fe97c86e5","block_type":"box","text":"unsecured debt of corporations. Like all fixed income securities,","page_number":306,"box":{"x":46,"y":614,"width":441,"height":12}},{"id":"c066d16f-dc16-4514-8ff4-a7b24e03d2c7","block_type":"box","text":"commercial paper prices are susceptible to fluctuations in interest","page_number":306,"box":{"x":493,"y":614,"width":452,"height":12}},{"id":"b85afe8f-d8c8-41df-850e-ae9369c012c9","block_type":"box","text":"rates. If interest rates rise, commercial paper prices will declin","page_number":306,"box":{"x":45,"y":629,"width":427,"height":13}},{"id":"40b9793a-6cd9-4bf7-8d41-8ac2d0fe7b97","block_type":"box","text":"e and vice versa. However, the short-term nature of a commercial","page_number":306,"box":{"x":472,"y":629,"width":455,"height":12}},{"id":"f4599a05-a0fe-4f3a-9c36-c96633355808","block_type":"box","text":"paper investment generally makes it less susceptible to volatility th","page_number":306,"box":{"x":45,"y":645,"width":459,"height":12}},{"id":"425e8d63-bd66-4aff-9d81-f782cd407862","block_type":"box","text":"an many other fixed income securities because interest rate risk","page_number":306,"box":{"x":505,"y":645,"width":437,"height":12}},{"id":"ff6d71c4-634f-494a-a06d-ec91ce2e1d89","block_type":"box","text":"typically increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate debt","page_number":306,"box":{"x":45,"y":660,"width":892,"height":13}},{"id":"a95baeae-ba38-4769-a50d-64400d618c5c","block_type":"box","text":"because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":306,"box":{"x":46,"y":676,"width":771,"height":12}},{"id":"8db224d4-b1f6-4c4e-81b4-64c7676bd74d","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":306,"box":{"x":45,"y":707,"width":426,"height":13}},{"id":"f85cfc6a-c16c-4585-868e-9c141705fc20","block_type":"box","text":". Although a Fund does not seek to implement a specific","page_number":306,"box":{"x":473,"y":707,"width":387,"height":12}},{"id":"e947829b-238a-45ab-b93d-448943d4e980","block_type":"box","text":"sustainability objective, strategy or process unless disclosed in th","page_number":306,"box":{"x":46,"y":722,"width":445,"height":13}},{"id":"0937235b-f4ec-49ac-a809-a61133a4c3c1","block_type":"box","text":"e Fund’s Prospectus, BlackRock will consider ESG factors as part","page_number":306,"box":{"x":491,"y":722,"width":452,"height":13}},{"id":"2b0c5c66-da66-4142-88a4-e46f06d484e1","block_type":"box","text":"of the credit research and investment process for a Fund. BlackRock views ESG integration as the practice of incorporating","page_number":306,"box":{"x":46,"y":738,"width":852,"height":12}},{"id":"a4653b57-e42f-4399-8720-fc653e8b325f","block_type":"box","text":"financially material ESG data or information into investment processes with the objective of enhancing risk-adjusted returns. All","page_number":306,"box":{"x":45,"y":753,"width":890,"height":13}},{"id":"ec642fa2-3e75-437d-b985-8383e375c62f","block_type":"box","text":"securities purchases by a Fund are selected from approved lists maintained by BlackRock. All instruments on an approved list used","page_number":306,"box":{"x":46,"y":769,"width":905,"height":13}},{"id":"099b843a-a96c-4fbb-8645-0f6a075b2593","block_type":"box","text":"by a Fund have met the minimal credit risk requirement of Rule 2a-7, if required. In reviewing instruments, BlackRock will","page_number":306,"box":{"x":46,"y":784,"width":853,"height":13}},{"id":"de251e5b-2051-4c40-a8b2-31e6676d0af9","block_type":"box","text":"consider the capacity of the issuer or guarantor to meet its obli","page_number":306,"box":{"x":45,"y":800,"width":434,"height":13}},{"id":"cbe9da64-4bc2-42e1-9282-c989f5e18fa2","block_type":"box","text":"gations. BlackRock considers ESG data within the total data","page_number":306,"box":{"x":480,"y":800,"width":419,"height":13}},{"id":"c15faf1b-8eca-4753-bd3f-16ae16c79686","block_type":"box","text":"available during its review. This may include third party research as well as considerations of proprietary BlackRock research","page_number":306,"box":{"x":46,"y":815,"width":868,"height":13}},{"id":"9fd76b3e-7f08-4ff4-8bae-c3d5e8e06b45","block_type":"box","text":"across the ESG risks and opportunities regarding an issuer.","page_number":306,"box":{"x":46,"y":831,"width":406,"height":13}},{"id":"e8c2ce47-05a1-4f77-9930-83762382f788","block_type":"box","text":"The ESG characteristics utilized in a Fund’s investment processes are anticipated to evolve over time and one or more","page_number":306,"box":{"x":45,"y":862,"width":813,"height":13}},{"id":"a7188df3-32fe-41a7-a0dd-7a27d2d2294d","block_type":"box","text":"characteristics may not be relevant with respect to all issuers that are eligible for investment. Certain of these considerations may","page_number":306,"box":{"x":45,"y":877,"width":891,"height":13}},{"id":"f210581c-f527-4d7d-9f16-397b4e27e346","block_type":"box","text":"II-2","page_number":306,"box":{"x":487,"y":917,"width":25,"height":9}},{"id":"42fd8f93-fd58-4d7d-b061-44ac0db0dae5","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":306,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"14569b2a-5eec-4670-bf4a-9ae021d99176","block_type":"box","text":"affect the Fund’s exposure to certain companies or industries. Wh","page_number":307,"box":{"x":46,"y":79,"width":455,"height":13}},{"id":"922dc917-58c0-4ab7-82e8-817777feaef8","block_type":"box","text":"ile BlackRock views ESG considerations as having the potential","page_number":307,"box":{"x":501,"y":79,"width":440,"height":13}},{"id":"51fd4dae-ec4e-4257-a6e2-1e6743d7aea5","block_type":"box","text":"to contribute to a Fund’s long-term performance, there is no guarantee that such results will be achieved.","page_number":307,"box":{"x":45,"y":94,"width":726,"height":13}},{"id":"6ade70d0-12a1-4e7b-a994-e7f6eb853308","block_type":"box","text":"Foreign Bank Money Instruments","page_number":307,"box":{"x":45,"y":118,"width":237,"height":12}},{"id":"8b87059c-dea8-47ac-ba69-d8384e42bcb1","block_type":"box","text":". Foreign bank money instruments refer to U.S. dollar-denominated obligations of foreign","page_number":307,"box":{"x":283,"y":118,"width":620,"height":12}},{"id":"18787a84-8197-4188-aceb-27e92cff616d","block_type":"box","text":"depository institutions and their foreign branches and subsidiaries, such as, but not limited to, certificates of deposit, bankers’","page_number":307,"box":{"x":46,"y":133,"width":869,"height":13}},{"id":"83dba592-0758-469a-b0f3-c0cdb393c1bb","block_type":"box","text":"acceptances, time deposits, bank notes and deposit notes. The obli","page_number":307,"box":{"x":46,"y":149,"width":458,"height":12}},{"id":"154dc5dc-e5a5-4871-b723-8e10bb2fa124","block_type":"box","text":"gations of such foreign depository institutions and their foreign","page_number":307,"box":{"x":505,"y":149,"width":437,"height":12}},{"id":"eb101244-5a11-47d1-ab3f-3bdcecffe0ea","block_type":"box","text":"branches and subsidiaries may be the general obligations of the parent bank or may be limited to the issuing branch or subsidiary","page_number":307,"box":{"x":46,"y":164,"width":896,"height":13}},{"id":"7da85ece-6ebf-4a1d-9a68-6d4454dc3e84","block_type":"box","text":"by the terms of the specific obligation or by government regulation. Such investments will only be made if determined to be of","page_number":307,"box":{"x":46,"y":180,"width":873,"height":12}},{"id":"56f3ccc3-8402-4b95-8a07-90078f3dc761","block_type":"box","text":"comparable quality to other investments permissible for a Fund. A Fund will not invest more than 25% of its total assets (taken at","page_number":307,"box":{"x":45,"y":195,"width":903,"height":13}},{"id":"136d9c58-69ed-45f0-a900-7bec27c8d282","block_type":"box","text":"market value at the time of each investment) in these obligations. Investments in foreign entities generally involve the same risks as","page_number":307,"box":{"x":45,"y":211,"width":904,"height":12}},{"id":"978ede6d-a44e-44f0-9f24-69cfd5eb769c","block_type":"box","text":"those described above in connection with investments in Eurodollar and Yankeedollar obligations and obligations of foreign","page_number":307,"box":{"x":45,"y":226,"width":863,"height":13}},{"id":"3b5bf6e9-d119-44e8-a498-83e4c10192f7","block_type":"box","text":"depository institutions and their foreign branches and subsidiaries. See “Bank Money Instruments.”","page_number":307,"box":{"x":46,"y":242,"width":690,"height":12}},{"id":"b100cf8e-a810-42d5-a4a1-9053bb627e22","block_type":"box","text":"Foreign Short Term Debt Instruments","page_number":307,"box":{"x":45,"y":265,"width":265,"height":13}},{"id":"341b2300-50c9-4394-a152-48c7bf51447e","block_type":"box","text":". Foreign short term debt instruments refer to U.S. dollar-denominated commercial paper","page_number":307,"box":{"x":312,"y":265,"width":616,"height":13}},{"id":"b7129599-84e6-49bf-97ac-6f5e2ee25f2b","block_type":"box","text":"and other short term obligations issued by foreign entities. Such","page_number":307,"box":{"x":46,"y":280,"width":441,"height":13}},{"id":"f3e1a8a0-91c7-4aaf-b442-cb8f612e7a67","block_type":"box","text":"investments are subject to quality standards similar to those","page_number":307,"box":{"x":492,"y":280,"width":413,"height":13}},{"id":"e5e94068-487a-446f-9360-7e9b3fb1fb97","block_type":"box","text":"applicable to investments in comparable obligations of domes","page_number":307,"box":{"x":46,"y":296,"width":427,"height":13}},{"id":"fab0cd38-c745-4ace-98df-2b6724b00de1","block_type":"box","text":"tic issuers. These investments generally involve the same risks as","page_number":307,"box":{"x":474,"y":296,"width":442,"height":13}},{"id":"d13674ad-67ba-4641-b1cc-8f7c9faa4435","block_type":"box","text":"those described above in connection with investments in Eurodollar and Yankeedollar obligations and obligations of foreign","page_number":307,"box":{"x":45,"y":311,"width":863,"height":13}},{"id":"feba7735-2ce4-47fe-ab5f-08ae907e54ca","block_type":"box","text":"depository institutions and their foreign branches and subsidiaries. See “Bank Money Instruments.”","page_number":307,"box":{"x":46,"y":327,"width":689,"height":13}},{"id":"bf5fe018-4e72-4e17-a12f-1babd6288f0a","block_type":"box","text":"Forward Commitments","page_number":307,"box":{"x":45,"y":350,"width":166,"height":10}},{"id":"4f6444d0-3e18-4917-8c13-1a8ed054e828","block_type":"box","text":". Certain Funds may purchase or sell money market securities on a forward commitment basis at fixed","page_number":307,"box":{"x":212,"y":350,"width":709,"height":13}},{"id":"deb87207-8330-47f4-9128-d93d9eba7073","block_type":"box","text":"purchase terms. The purchase or sale will be recorded on the date a F","page_number":307,"box":{"x":45,"y":366,"width":481,"height":12}},{"id":"69812b30-2cfa-444d-937e-f7f0c80fc036","block_type":"box","text":"und enters into the commitment, and the value of the security","page_number":307,"box":{"x":526,"y":366,"width":427,"height":12}},{"id":"bd49c988-70ba-43ca-8ad7-02793e0c12bf","block_type":"box","text":"will thereafter be reflected in the calculation of the Fund’s NAV. The value of the security on the delivery date may be more or less","page_number":307,"box":{"x":45,"y":381,"width":905,"height":13}},{"id":"2d025bb2-b496-4751-b67b-a5b3d8be055a","block_type":"box","text":"than its purchase price. Although a Fund generally will enter into fo","page_number":307,"box":{"x":45,"y":397,"width":462,"height":12}},{"id":"4f89ecd9-218a-4214-84b3-863277797290","block_type":"box","text":"forward commitments with the intention of acquiring securities","page_number":307,"box":{"x":507,"y":397,"width":434,"height":12}},{"id":"34c8e37b-fd22-46d7-9150-80c6f43e3a6c","block_type":"box","text":"for its portfolio, a Fund may dispose of a commitment prior","page_number":307,"box":{"x":45,"y":412,"width":416,"height":13}},{"id":"5d1b6bb1-8a46-446b-88f6-0eb47a5f94ad","block_type":"box","text":"to settlement if the Manager deems it appropriate to do so.","page_number":307,"box":{"x":466,"y":412,"width":408,"height":13}},{"id":"667dcfc7-1281-4196-b849-dca65d21eb71","block_type":"box","text":"There can be no assurance that a security purchased or sold th","page_number":307,"box":{"x":45,"y":435,"width":432,"height":13}},{"id":"f4f8b407-d9de-4535-83fe-ff42bd07dead","block_type":"box","text":"rough a forward commitment will be delivered. The value of","page_number":307,"box":{"x":478,"y":435,"width":421,"height":13}},{"id":"fa990c90-5854-4b86-aa00-9aeea13921df","block_type":"box","text":"securities in these transactions on the delivery date may be more or less than a Fund’s purchase price. The Fund may bear the risk","page_number":307,"box":{"x":46,"y":451,"width":896,"height":13}},{"id":"3be2d2c2-856a-40b2-ab79-80fdc49aa385","block_type":"box","text":"of a decline in the value of the security in these transactions and may not benefit from appreciation in the value of the security","page_number":307,"box":{"x":46,"y":466,"width":872,"height":13}},{"id":"3699b8a5-ec7c-452f-b0bb-78c96f829752","block_type":"box","text":"during the commitment period.","page_number":307,"box":{"x":46,"y":482,"width":216,"height":13}},{"id":"76fb942a-860c-4e4c-b0dd-259336b39750","block_type":"box","text":"Illiquid Investments","page_number":307,"box":{"x":45,"y":505,"width":140,"height":13}},{"id":"162a98a9-20aa-4cf8-bcdf-27533fd5dc5e","block_type":"box","text":". No Fund will acquire any illiquid security (i.e., securities that cannot be sold or disposed of in the ordinary","page_number":307,"box":{"x":186,"y":505,"width":748,"height":13}},{"id":"1621b175-2961-47fa-bac7-d8c15780909c","block_type":"box","text":"course of business within seven days at approximately the value ascribed to them by the Fund) if, immediately following such","page_number":307,"box":{"x":45,"y":521,"width":870,"height":12}},{"id":"f2f9d5de-9094-4d11-8328-806f49008428","block_type":"box","text":"purchase, more than 5% of the Fund’s total assets are invested","page_number":307,"box":{"x":45,"y":536,"width":434,"height":13}},{"id":"c5406ad4-ac7a-47a6-a6d2-1f885352e9b6","block_type":"box","text":"in illiquid securities. The Manager will monitor the liquidity of","page_number":307,"box":{"x":484,"y":536,"width":436,"height":13}},{"id":"341da1f8-738c-40c0-b5af-c73ca8813162","block_type":"box","text":"illiquid investments under the supervision of the Board.","page_number":307,"box":{"x":45,"y":552,"width":383,"height":12}},{"id":"a3fef564-1811-4ff3-81b3-37165fcb2f52","block_type":"box","text":"Inflation Risk.","page_number":307,"box":{"x":45,"y":575,"width":100,"height":13}},{"id":"c2b3eefd-cb64-436f-890a-eb3906a55043","block_type":"box","text":"The Funds are subject to inflation risk. Inflation risk is the risk that the present value of assets or income from","page_number":307,"box":{"x":151,"y":575,"width":762,"height":13}},{"id":"c657f20c-b337-4ba5-be0d-a1ff4df0850c","block_type":"box","text":"investments will be less in the future as inflation decreases the value of money. As inflation increases, the present value of a Fund’s","page_number":307,"box":{"x":45,"y":590,"width":902,"height":13}},{"id":"3a01d3f6-42de-434a-9121-04a9094e1815","block_type":"box","text":"assets can decline as can the value of a Fund’s distributions. Inflation rates may change frequently and significantly due to a","page_number":307,"box":{"x":46,"y":606,"width":855,"height":13}},{"id":"614b4ffe-55e4-4f0b-89e7-a88e5ee331be","block_type":"box","text":"number of potential factors, including, among others, unexpect","page_number":307,"box":{"x":45,"y":621,"width":439,"height":13}},{"id":"e4831d61-9573-4fcf-8cb6-c2938cf70c28","block_type":"box","text":"ed economic shifts or changes in fiscal or monetary policies.","page_number":307,"box":{"x":484,"y":621,"width":414,"height":13}},{"id":"3ea1edc1-6a5a-4f95-bd3a-a34c2fb308ef","block_type":"box","text":"Investment in Other Investment Companies.","page_number":307,"box":{"x":45,"y":645,"width":311,"height":13}},{"id":"f02a1322-f94e-4558-bb9e-13e1437f7d13","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other investment companies","page_number":307,"box":{"x":362,"y":645,"width":554,"height":12}},{"id":"ad40bf69-9856-4b25-afbd-6c41aa681ff8","block_type":"box","text":"(including investment companies managed by BlackRock and its affiliates), including money market funds and exchange-traded","page_number":307,"box":{"x":46,"y":660,"width":885,"height":13}},{"id":"2a271209-e43c-4218-b55c-5a47c9f672f3","block_type":"box","text":"funds (“ETFs”), which are typically open-end funds or unit investment trusts listed on a stock exchange. Under","page_number":307,"box":{"x":45,"y":676,"width":771,"height":12}},{"id":"de860453-e952-481d-ab46-c2f8d26883b4","block_type":"box","text":"Section 12(d)(1)(A) of the Investment Company Act, however, a Fund may invest up to 10% of its total assets in securities of","page_number":307,"box":{"x":46,"y":691,"width":867,"height":13}},{"id":"149ce14b-e58d-4d3b-bfe3-e2adf5527a22","block_type":"box","text":"other investment companies (measured at the time of such invest","page_number":307,"box":{"x":46,"y":707,"width":447,"height":12}},{"id":"eea58160-f568-4bcf-a161-7518670fa45d","block_type":"box","text":"ment). In addition, under Section 12(d)(1)(A) of the Investment","page_number":307,"box":{"x":493,"y":707,"width":438,"height":12}},{"id":"b5783a86-737e-43e8-a500-6217480709f8","block_type":"box","text":"Company Act a Fund may not acquire securities of an investment company if such acquisition would cause the Fund to own more","page_number":307,"box":{"x":46,"y":722,"width":903,"height":13}},{"id":"96fe2f71-e49f-4a8d-85f3-5edb13ac810d","block_type":"box","text":"than 3% of the total outstanding voting stock of such investment company and a Fund may not invest in another investment","page_number":307,"box":{"x":45,"y":738,"width":866,"height":12}},{"id":"5a70b387-561e-4344-bac3-da76920a0e8a","block_type":"box","text":"company if such investment would cause more than 5% of the value of the Fund’s total assets to be invested in securities of such","page_number":307,"box":{"x":45,"y":753,"width":891,"height":13}},{"id":"f67f8745-3996-41a8-88cf-bbf59f31965c","block_type":"box","text":"investment company. (These limits do not restrict a feeder fund from investing all of its assets in shares of its master portfolio.) In","page_number":307,"box":{"x":45,"y":769,"width":896,"height":13}},{"id":"8d503acc-c86f-4bd7-90b6-d4a7f542b776","block_type":"box","text":"addition to the restrictions on investing in other investme","page_number":307,"box":{"x":46,"y":784,"width":395,"height":13}},{"id":"34da5154-8e87-4a9a-9345-d162ebcd0ccf","block_type":"box","text":"nt companies discussed above, under Section 12(d)(1)(C) of the","page_number":307,"box":{"x":442,"y":784,"width":438,"height":13}},{"id":"9102fc5c-395d-4f82-85b0-177915d3cc2b","block_type":"box","text":"Investment Company Act a Fund may not invest in a registered closed-end investment company if such investment would cause","page_number":307,"box":{"x":45,"y":800,"width":884,"height":13}},{"id":"4377abe4-f5a7-4e00-b888-dc0c1f81681c","block_type":"box","text":"the Fund and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of such","page_number":307,"box":{"x":45,"y":815,"width":909,"height":13}},{"id":"9b2940ea-cd10-4dd2-846a-d312d587a4e9","block_type":"box","text":"closed-end investment company. Pursuant to Section 12(d)(1","page_number":307,"box":{"x":45,"y":831,"width":420,"height":13}},{"id":"b75ec063-81ca-418b-ba2e-0948c7c5a51c","block_type":"box","text":")(G) of the Investment Company Act, these percentage limitations do","page_number":307,"box":{"x":468,"y":831,"width":476,"height":13}},{"id":"00f4cfbb-272b-4d48-8085-38e9c10dfd39","block_type":"box","text":"not apply to investments in affiliated investment companies, in","page_number":307,"box":{"x":45,"y":846,"width":434,"height":13}},{"id":"1dacbc3a-804c-4a0b-8c7d-0c9c22eef2db","block_type":"box","text":"cluding ETFs, subject to certain conditions. In addition, a Fund may","page_number":307,"box":{"x":479,"y":846,"width":473,"height":13}},{"id":"f5ea9490-bc3d-43ed-ae28-812a825765a5","block_type":"box","text":"be able to rely on certain rules under the Investment Company Act to invest in shares of money market funds or other investment","page_number":307,"box":{"x":46,"y":862,"width":897,"height":13}},{"id":"0e048e4f-df07-476d-9732-0a44cd7eb79e","block_type":"box","text":"companies beyond the statutory limits noted above, but subject to certain conditions.","page_number":307,"box":{"x":45,"y":877,"width":590,"height":13}},{"id":"a657c15a-6ece-46ca-99fd-22411a967e7b","block_type":"box","text":"II-3","page_number":307,"box":{"x":487,"y":917,"width":24,"height":9}},{"id":"d5b2b048-ceb5-468a-add7-132d56de6f1c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":307,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1d8de866-379f-47bc-a9f0-2098a7759f4f","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":308,"box":{"x":45,"y":79,"width":767,"height":13}},{"id":"81a2cb20-ada4-499d-b962-4ff788b21110","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange may at times be","page_number":308,"box":{"x":46,"y":101,"width":854,"height":13}},{"id":"fadef3a4-f558-4898-95ea-efaf1a82bc54","block_type":"box","text":"acquired at market prices representing premiums to their NAVs. In","page_number":308,"box":{"x":46,"y":117,"width":464,"height":12}},{"id":"b16ffecf-f4e5-41af-8240-6da9be46095d","block_type":"box","text":"addition, investment companies held by a Fund that trade on","page_number":308,"box":{"x":515,"y":117,"width":422,"height":12}},{"id":"ba852c83-f9e6-48ed-9ec8-75357a8ea177","block_type":"box","text":"an exchange could trade at a discount from NAV, and such discount could increase while the Fund holds the shares. If the market","page_number":308,"box":{"x":46,"y":132,"width":901,"height":13}},{"id":"9893349c-2d15-48bf-a97a-e901ef2316d6","block_type":"box","text":"price of shares of an exchange-traded investment company decreases below the price that the Fund paid for the shares and the","page_number":308,"box":{"x":45,"y":148,"width":874,"height":12}},{"id":"8fe88947-a04c-4b09-88f9-8490a6f5f94d","block_type":"box","text":"Fund were to sell its shares of such investment company at a time when the market price is lower than the price at which it","page_number":308,"box":{"x":45,"y":163,"width":852,"height":13}},{"id":"e68d655e-022b-4f6f-bfbd-ee70e9b76000","block_type":"box","text":"purchased the shares, the Fund would experience a loss.","page_number":308,"box":{"x":45,"y":179,"width":387,"height":12}},{"id":"fb698b1b-10ce-4a6b-8086-a736dcbfb4ff","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, in","page_number":308,"box":{"x":45,"y":201,"width":455,"height":13}},{"id":"eab98d1e-3d99-4ee4-8e3b-0007a4617f93","block_type":"box","text":"cluding affiliated investment companies, shareholders would","page_number":308,"box":{"x":500,"y":201,"width":419,"height":13}},{"id":"df5cc2f1-453d-4ab0-a37a-61b25e08df3d","block_type":"box","text":"bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such investment companies. Such","page_number":308,"box":{"x":46,"y":216,"width":867,"height":13}},{"id":"b4852970-4f71-4212-a7af-e2cceaa32fc4","block_type":"box","text":"expenses, both at the Fund level and acquired investment comp","page_number":308,"box":{"x":46,"y":232,"width":438,"height":13}},{"id":"387b9c31-7a53-4b0d-a04d-c05ce7467a85","block_type":"box","text":"any level, would include management and advisory fees, unless","page_number":308,"box":{"x":485,"y":232,"width":435,"height":13}},{"id":"3d257dfd-6f8a-4e21-914c-a2fd0963c7b3","block_type":"box","text":"such fees have been waived by BlackRock. Please see the relevant Fund’s Prospectus to determine whether any such management","page_number":308,"box":{"x":46,"y":247,"width":892,"height":13}},{"id":"25626b9d-81df-4982-ac7d-64a74bd4d0db","block_type":"box","text":"and advisory fees have been waived by BlackRock. Investments by a Fund in wholly owned investment entities created under the","page_number":308,"box":{"x":46,"y":263,"width":892,"height":13}},{"id":"5704e085-0704-496d-8d36-da4baac0f128","block_type":"box","text":"laws of certain countries will not be deemed an investment in other investment companies. Pursuant to guidance issued by the staff","page_number":308,"box":{"x":45,"y":278,"width":908,"height":13}},{"id":"4f64dd16-df51-48f9-a26c-d456127e40b5","block_type":"box","text":"of the Commission, fees and expenses of money market funds used for the investment of cash collateral received in connection","page_number":308,"box":{"x":46,"y":294,"width":875,"height":13}},{"id":"c60b5e45-67d1-41a2-9131-5e05c82521bd","block_type":"box","text":"with loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses charged by other","page_number":308,"box":{"x":45,"y":309,"width":894,"height":13}},{"id":"67cbe640-10c7-4c63-b59c-8d226a95f47e","block_type":"box","text":"investment companies and pooled investment vehicles in which a Fund invests a portion of its assets.","page_number":308,"box":{"x":45,"y":325,"width":696,"height":13}},{"id":"4e0a3aef-f3e0-4b0e-8d26-a1b58212f3da","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 may be limited. In","page_number":308,"box":{"x":45,"y":354,"width":887,"height":13}},{"id":"4f644159-8fc6-4db8-bfab-8841108520a5","block_type":"box","text":"addition, a fund-of-funds (","page_number":308,"box":{"x":46,"y":369,"width":183,"height":13}},{"id":"1dec1a81-316b-414e-8985-4f80a5000432","block_type":"box","text":"e.g.","page_number":308,"box":{"x":230,"y":373,"width":22,"height":9}},{"id":"80eaf055-e6f3-4126-8723-a3db54aa7ed6","block_type":"box","text":", an investment company that seeks to meet its investment objective by investing significantly in","page_number":308,"box":{"x":255,"y":369,"width":660,"height":13}},{"id":"5d70f2eb-6240-44ab-ae01-b59b3c191879","block_type":"box","text":"other investment companies) may be limited in its ability to purchase underlying funds if such underlying funds themselves own","page_number":308,"box":{"x":46,"y":385,"width":884,"height":13}},{"id":"655e8277-a7ec-4e18-8f47-118420e7cd56","block_type":"box","text":"shares of underlying funds.","page_number":308,"box":{"x":46,"y":400,"width":186,"height":13}},{"id":"33ee0456-9aba-4950-921a-430a348d18c6","block_type":"box","text":"A number of publicly traded closed-end investment companie","page_number":308,"box":{"x":45,"y":423,"width":427,"height":13}},{"id":"4e4afa11-0b60-48a7-96cb-dc2c96fa3802","block_type":"box","text":"s have been organized to facilitate indirect foreign investment in","page_number":308,"box":{"x":473,"y":423,"width":442,"height":13}},{"id":"c01177fd-4530-4438-aca9-f5dedb5f79c2","block_type":"box","text":"developing countries, and certain of such countries, such as Thailand,","page_number":308,"box":{"x":46,"y":438,"width":481,"height":13}},{"id":"dfcaec7a-a87f-4204-a343-0ded54d678b2","block_type":"box","text":"South Korea, Chile and Brazil, have specifically authorized","page_number":308,"box":{"x":532,"y":438,"width":407,"height":13}},{"id":"82ed7218-41e6-41f3-ba3a-fdfa382dffaf","block_type":"box","text":"such funds. There also are investment opportunities in certai","page_number":308,"box":{"x":46,"y":454,"width":418,"height":13}},{"id":"7207b00b-0896-4b36-b3a6-fbcd345f1b6a","block_type":"box","text":"n of such countries in pooled vehicles that resemble open-end","page_number":308,"box":{"x":464,"y":454,"width":425,"height":13}},{"id":"e562a2f0-4405-4678-995f-a357a9725ec9","block_type":"box","text":"investment companies. The restrictions on investments in securities of investment companies set forth above may limit","page_number":308,"box":{"x":45,"y":469,"width":819,"height":13}},{"id":"994fa260-3508-4377-8ed1-d84b4ce1d23c","block_type":"box","text":"opportunities for a Fund to invest indirectly in certain developing countries.","page_number":308,"box":{"x":46,"y":485,"width":523,"height":13}},{"id":"5712b57b-a4cc-4f65-bbfe-3bb6338e7d23","block_type":"box","text":"Issuer Insolvency Risk.","page_number":308,"box":{"x":45,"y":507,"width":158,"height":13}},{"id":"6f8e22cf-5cde-4098-a6ed-0a160e4e6771","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves a high degree of","page_number":308,"box":{"x":210,"y":507,"width":736,"height":13}},{"id":"bb0d8ae0-c9e3-4257-8cd4-6546f8653aa5","block_type":"box","text":"credit and market risk, which may be heightened during an economic downturn or recession. Should an issuer of securities held by","page_number":308,"box":{"x":45,"y":523,"width":906,"height":12}},{"id":"801945a8-aa0a-41c8-98f2-d3c63ce236f0","block_type":"box","text":"a Fund become involved in a bankruptcy proceeding, reorganizatio","page_number":308,"box":{"x":46,"y":538,"width":464,"height":13}},{"id":"f50f6a51-a9f3-4cd5-a769-912f69bab9d0","block_type":"box","text":"n or financial restructuring, a wide variety of considerations","page_number":308,"box":{"x":511,"y":538,"width":415,"height":13}},{"id":"7c09c692-87f9-4dcb-bde7-f92624b6e947","block_type":"box","text":"make an evaluation of the outcome of the Fund’s exposure to the issuer uncertain.","page_number":308,"box":{"x":45,"y":554,"width":569,"height":12}},{"id":"2100146e-2825-4394-b215-e70045ebb03a","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or","page_number":308,"box":{"x":45,"y":576,"width":450,"height":13}},{"id":"ab431c34-97d5-4f05-be16-a2b59dd1603f","block_type":"box","text":"financial restructuring, it is unlikely that a Fund will receive any","page_number":308,"box":{"x":500,"y":576,"width":442,"height":13}},{"id":"a1c34cfc-4032-4678-8d14-cfdc7947db35","block_type":"box","text":"interest payments on the securities of the issuer. A Fund will be subject","page_number":308,"box":{"x":45,"y":591,"width":490,"height":13}},{"id":"416de57e-7fe1-4be0-893c-bb84b2676034","block_type":"box","text":"to significant uncertainty as to whether the reorganization","page_number":308,"box":{"x":540,"y":591,"width":402,"height":13}},{"id":"6176d954-2145-4659-9db8-9d23703bf52d","block_type":"box","text":"or restructuring will be completed, and the Fund may bear certain extraordinary expenses to protect and recover its investment. A","page_number":308,"box":{"x":46,"y":607,"width":901,"height":13}},{"id":"982e727f-6ac3-47c4-9fb7-0259272a6efb","block_type":"box","text":"Fund will also be subject to significant uncertainty as to when and in what manner and for what value the obligations evidenced","page_number":308,"box":{"x":45,"y":622,"width":889,"height":13}},{"id":"ee90a4d4-6a00-40a2-accf-95a2306bcff5","block_type":"box","text":"by the securities of the issuer held by the Fund will eventually be satisfied.","page_number":308,"box":{"x":46,"y":638,"width":509,"height":13}},{"id":"a5a1a164-4af1-4414-bf87-53699add4fc2","block_type":"box","text":"Even if a plan of reorganization or restructuring is adopted with","page_number":308,"box":{"x":45,"y":660,"width":445,"height":13}},{"id":"779d09d4-38fc-49e3-a99b-03823a818535","block_type":"box","text":"respect to the securities of the issuer held by the Fund, there can","page_number":308,"box":{"x":495,"y":660,"width":441,"height":13}},{"id":"2aecf596-d635-43cb-9a3e-338457e1df86","block_type":"box","text":"be no assurance that the securities or other assets received by a Fund in connection with such plan of reorganization or","page_number":308,"box":{"x":46,"y":676,"width":822,"height":12}},{"id":"5fd9193a-5e95-479e-8daf-f278cddb021d","block_type":"box","text":"restructuring will not have a lower value or income potential than may have been anticipated or no value. A Fund may be unable","page_number":308,"box":{"x":45,"y":691,"width":896,"height":13}},{"id":"27e9bf18-456a-4592-ac5e-6a8cb0fec6f7","block_type":"box","text":"to enforce its claims or rights in any collateral or may have its clai","page_number":308,"box":{"x":45,"y":707,"width":456,"height":12}},{"id":"0ff0f01c-4bf1-47d5-82e1-ccd24acb9f35","block_type":"box","text":"ms or security interest in any collateral challenged, disallowed or","page_number":308,"box":{"x":502,"y":707,"width":448,"height":12}},{"id":"6bfa9574-117d-4456-adf1-9f2af1a5561a","block_type":"box","text":"subordinated to the claims or security interests of other creditors. In addition, amendments to the U.S. Bankruptcy Code or other","page_number":308,"box":{"x":46,"y":722,"width":894,"height":13}},{"id":"0f980581-cd54-4e3a-9a14-bd6a6702129f","block_type":"box","text":"relevant laws could alter the expected outcome or introduce greate","page_number":308,"box":{"x":45,"y":738,"width":462,"height":12}},{"id":"b1a6cb55-169c-445c-b85c-3613995c7a7c","block_type":"box","text":"r uncertainty regarding the outcome of the Fund’s securities","page_number":308,"box":{"x":507,"y":738,"width":413,"height":12}},{"id":"764c4b8c-9c27-4325-86cb-c36aaff72ff7","block_type":"box","text":"holdings in the issuer. In a bankruptcy proceeding, a reorganization or restructuring, the securities of the issuer held by a Fund","page_number":308,"box":{"x":45,"y":753,"width":876,"height":13}},{"id":"17165fc9-5243-4a4c-b14b-9e94f40a909f","block_type":"box","text":"could be re-characterized or a Fund may receive different securities or other assets, including equity securities. 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The value of equity securities received by a Fund could decline","page_number":308,"box":{"x":45,"y":846,"width":908,"height":13}},{"id":"4e81a9fa-a0d4-4168-85ae-c5e3c9dfeb5a","block_type":"box","text":"if the financial condition of the issuer deteriorates or if overa","page_number":308,"box":{"x":45,"y":862,"width":420,"height":10}},{"id":"c6afc7da-68b0-419c-8a2d-aec33c740beb","block_type":"box","text":"ll market and economic conditions, or conditions within the issuer’s","page_number":308,"box":{"x":466,"y":862,"width":470,"height":12}},{"id":"f3b2e943-0a8c-4d4f-a1a3-734ab5327848","block_type":"box","text":"region or industry, deteriorate.","page_number":308,"box":{"x":45,"y":877,"width":212,"height":13}},{"id":"b8f21cae-e11c-4eec-b70a-e6b98775b177","block_type":"box","text":"II-4","page_number":308,"box":{"x":487,"y":917,"width":25,"height":9}},{"id":"eb3190a6-d01e-40ba-b1e4-63e853aae3f4","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":308,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d93b6ad9-4253-4ef7-a57b-510e4eaf5379","block_type":"box","text":"To the extent that a Fund receives other assets in connection","page_number":309,"box":{"x":45,"y":79,"width":419,"height":10}},{"id":"77a5f1dc-a696-48f8-b696-7a4de7b94049","block_type":"box","text":"with a bankruptcy proceeding, reorganization or financial","page_number":309,"box":{"x":468,"y":79,"width":402,"height":13}},{"id":"e6228e8b-530b-4d6b-bf23-6ef894500ce9","block_type":"box","text":"restructuring, the Fund may also be subject to additional risks associated with the assets received. 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A Fund may receive such interests in loans to the extent permitted by the Investment","page_number":309,"box":{"x":45,"y":125,"width":853,"height":13}},{"id":"a349e0b6-68b5-4dbb-957e-d8fa21bf0969","block_type":"box","text":"Company Act.","page_number":309,"box":{"x":46,"y":141,"width":100,"height":13}},{"id":"89dbcc7a-0399-466f-b6ab-2256ab35bfe4","block_type":"box","text":"Securities or other assets received in a reorganization or restructur","page_number":309,"box":{"x":46,"y":162,"width":456,"height":13}},{"id":"110251c4-4c03-4b8a-9946-9e5fec54df79","block_type":"box","text":"ing typically entail a higher degree of risk than investments in","page_number":309,"box":{"x":503,"y":162,"width":425,"height":13}},{"id":"8695c59e-f776-4ede-bea8-b3a47e214d2d","block_type":"box","text":"securities of issuers that have not undergone a reorganization or restructuring and may be subject to heavy selling or downward","page_number":309,"box":{"x":46,"y":178,"width":885,"height":12}},{"id":"efbb8bbf-0659-45af-8879-70351fe99dae","block_type":"box","text":"pricing pressure after completion of the reorganization or restruct","page_number":309,"box":{"x":45,"y":193,"width":455,"height":13}},{"id":"9ef2fcf4-e9de-4014-8e1b-525d7ecc71ec","block_type":"box","text":"uring. The post-reorganization/restructuring assets and securities","page_number":309,"box":{"x":501,"y":193,"width":447,"height":13}},{"id":"6d722fa2-c0af-4d39-b3cd-01d17365bad6","block_type":"box","text":"may also be illiquid and difficult to sell or value. If a Fund participates in negotiations with respect to a plan of reorganization or","page_number":309,"box":{"x":45,"y":209,"width":892,"height":12}},{"id":"9024fd62-dcff-482b-a30d-50f7abb9fb3b","block_type":"box","text":"restructuring with respect to securities of the issuer held by a Fund, the Fund also may be restricted from disposing such securities","page_number":309,"box":{"x":45,"y":224,"width":897,"height":13}},{"id":"b97f3f52-384f-4e76-b32e-bf4d8ca49cae","block_type":"box","text":"for a period of time. If a Fund becomes involved in such proceedings, the Fund may have more active participation in the affairs of","page_number":309,"box":{"x":45,"y":240,"width":906,"height":12}},{"id":"39440f7b-1980-44b2-baf6-781389d8b804","block_type":"box","text":"the issuer than that assumed generally by an investor.","page_number":309,"box":{"x":45,"y":255,"width":370,"height":13}},{"id":"f4d587d8-06bc-4ccf-9777-b1b58894fb35","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":309,"box":{"x":44,"y":276,"width":257,"height":11}},{"id":"03730e6d-5126-4c06-8e8a-e027f268f981","block_type":"box","text":"Securities may decline in value due to factors affecting securities markets generally or","page_number":309,"box":{"x":307,"y":276,"width":588,"height":13}},{"id":"67ff774f-81c7-448c-bbec-948b8004a818","block_type":"box","text":"particular industries represented in the markets. The value of a security may decline due to general market conditions, economic","page_number":309,"box":{"x":45,"y":292,"width":888,"height":13}},{"id":"b343f558-b0de-42e5-a534-11367af75b5c","block_type":"box","text":"trends or events that are not specifically related to a company or to factors that affect a particular industry or industries, or factors","page_number":309,"box":{"x":45,"y":307,"width":904,"height":13}},{"id":"5bc6ec31-7bb3-4172-ad0e-3fa1d9984ba8","block_type":"box","text":"that affect a particular issuer or issuers, exchange, country, gr","page_number":309,"box":{"x":45,"y":323,"width":427,"height":13}},{"id":"5bbb2346-b374-4660-95a1-640cc47f8756","block_type":"box","text":"oup of countries, region, market, industry, group of industries, sector","page_number":309,"box":{"x":473,"y":323,"width":479,"height":13}},{"id":"5e57fcee-ba95-46aa-b9b3-63f6cbdf7784","block_type":"box","text":"or asset class. The success of a Fund’s activities could be affected by interest rates, availability of credit, inflation rates, economic","page_number":309,"box":{"x":46,"y":338,"width":888,"height":13}},{"id":"5b936cc6-9b25-42aa-99d2-6796c144989e","block_type":"box","text":"uncertainty, changes in laws, trade barriers, economic sanctions, cu","page_number":309,"box":{"x":46,"y":354,"width":466,"height":13}},{"id":"e476cbe3-ac2e-4eec-b81d-f71faaf09c9b","block_type":"box","text":"rrency exchange controls, and local, regional or global events","page_number":309,"box":{"x":513,"y":354,"width":424,"height":13}},{"id":"f63114aa-c316-43c8-b76a-beb57dfb9984","block_type":"box","text":"such as war, acts of terrorism, natural and environmental disas","page_number":309,"box":{"x":46,"y":369,"width":435,"height":13}},{"id":"05c8d3eb-72d6-4510-8019-09c637b62d02","block_type":"box","text":"ters, the spread of infectious illness or other public health issues,","page_number":309,"box":{"x":482,"y":369,"width":444,"height":13}},{"id":"f2792cb1-3bce-4cb9-9429-ee68ea8a9795","block_type":"box","text":"recessions, or other events could have a significant impact on a Fund","page_number":309,"box":{"x":45,"y":385,"width":476,"height":13}},{"id":"fb102d29-6ffb-4978-8f43-ad3e06986c2a","block_type":"box","text":"and its investments. 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Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with","page_number":310,"box":{"x":46,"y":558,"width":894,"height":12}},{"id":"c3d03b38-866d-408c-8216-d50d9777b651","block_type":"box","text":"any future downturns in the global economy resulting therefrom,","page_number":310,"box":{"x":46,"y":573,"width":450,"height":13}},{"id":"d0acd145-1e86-46ef-97c4-de8254219ce0","block_type":"box","text":"could adversely affect the financial performance of a Fund and","page_number":310,"box":{"x":502,"y":573,"width":433,"height":13}},{"id":"d275eaaf-d79a-464d-9fab-a6f724ec5033","block_type":"box","text":"its investments. Trade policy may be an ongoing source of instab","page_number":310,"box":{"x":45,"y":589,"width":449,"height":12}},{"id":"a8272623-0999-441a-a049-5d3a27a0ed1c","block_type":"box","text":"ility, potentially resulting in significant currency fluctuations and/","page_number":310,"box":{"x":495,"y":589,"width":453,"height":12}},{"id":"e73e408b-2e2e-4290-a325-fb91f8ec99e3","block_type":"box","text":"or having other adverse effects on international markets, intern","page_number":310,"box":{"x":46,"y":604,"width":436,"height":13}},{"id":"a8d8206c-025f-4487-9816-10bd6cc96a81","block_type":"box","text":"ational trade agreements, and/or other existing cross-border","page_number":310,"box":{"x":483,"y":604,"width":415,"height":13}},{"id":"cb58cb69-bd2b-49e7-8506-0c80a7f47b30","block_type":"box","text":"cooperation arrangements (whether economic, tax, fiscal, legal,","page_number":310,"box":{"x":45,"y":620,"width":439,"height":12}},{"id":"928a8352-b89f-4e8d-b265-fea9ec95fada","block_type":"box","text":"regulatory, or otherwise). To the extent trade disputes escalate","page_number":310,"box":{"x":489,"y":620,"width":433,"height":12}},{"id":"2572a630-84c9-4e0b-80b4-aeab5d0b83d2","block_type":"box","text":"globally, there could be additional significant impacts on the sectors or industries in which a Fund invests and other adverse","page_number":310,"box":{"x":45,"y":635,"width":858,"height":13}},{"id":"416eed1d-c959-4d26-a5e1-e1a44ec9fa77","block_type":"box","text":"impacts on a Fund’s overall performance.","page_number":310,"box":{"x":45,"y":651,"width":287,"height":12}},{"id":"4fda1de1-94f9-4f08-9e9b-756038baca3e","block_type":"box","text":"Municipal Investments","page_number":310,"box":{"x":45,"y":686,"width":183,"height":14}},{"id":"9b69bcb4-3419-4e79-b6b5-35084232d2d5","block_type":"box","text":"Municipal Securities","page_number":310,"box":{"x":45,"y":712,"width":140,"height":13}},{"id":"2696ab6c-5c7d-4343-a8c4-febb547cb87e","block_type":"box","text":". Certain Funds invest in short term municipal obligations issued by or on behalf of the states, their political","page_number":310,"box":{"x":187,"y":712,"width":745,"height":13}},{"id":"e80ca7c7-6f10-4e0c-9dff-8127ef4c5673","block_type":"box","text":"subdivisions, agencies and instrumentalities and obligations of other qualifying issuers, such as issuers located in Puerto Rico, the","page_number":310,"box":{"x":46,"y":728,"width":893,"height":13}},{"id":"da77080c-aaad-4811-9cd0-56c2011d050e","block_type":"box","text":"U.S. Virgin Islands and Guam, the interest on which (and/or, in the case of property taxes, the value of which) is excludable, in the","page_number":310,"box":{"x":45,"y":743,"width":905,"height":13}},{"id":"0eb6c67a-c21d-4878-b018-c49d19c78613","block_type":"box","text":"opinion of bond counsel to the issuer, from gross income for purposes of Federal income taxes and the applicable state’s income","page_number":310,"box":{"x":46,"y":759,"width":887,"height":13}},{"id":"0f6c679e-25b4-45a1-a713-a8e936e2ead5","block_type":"box","text":"taxes (“State Taxes”). Obligations that pay interest that is ex","page_number":310,"box":{"x":45,"y":774,"width":423,"height":13}},{"id":"818fbf89-01fb-4929-806f-0f057454db9e","block_type":"box","text":"cludable from gross income for Federal income tax purposes are","page_number":310,"box":{"x":468,"y":774,"width":445,"height":13}},{"id":"c9ae703f-d541-42b1-a65a-ff2ecd5df192","block_type":"box","text":"referred to herein as “Municipal Securities,” and obligations that","page_number":310,"box":{"x":45,"y":790,"width":451,"height":13}},{"id":"4c1655f9-35eb-4a00-81bf-24a1afc6b36c","block_type":"box","text":"pay interest that is excludable from gross income for Federal","page_number":310,"box":{"x":501,"y":790,"width":419,"height":13}},{"id":"5adf21bc-3c42-452d-9767-89aba6f82532","block_type":"box","text":"income tax purposes and are exempt from the applicable State Taxes are referred to as “State Municipal Securities.” Unless","page_number":310,"box":{"x":45,"y":805,"width":856,"height":13}},{"id":"93543080-00f9-4695-a4a2-076721c42f20","block_type":"box","text":"otherwise indicated, references to Municipal Securities shall be deemed to include State Municipal Securities.","page_number":310,"box":{"x":46,"y":821,"width":751,"height":13}},{"id":"0aaeb480-7823-4536-aae7-bcbfb4faaf47","block_type":"box","text":"Municipal Securities include debt obligations issued to obtai","page_number":310,"box":{"x":45,"y":846,"width":417,"height":13}},{"id":"bb6b4fb0-f4c2-4143-bb2f-77e040fae320","block_type":"box","text":"n funds for various public purposes, including construction of a wide","page_number":310,"box":{"x":462,"y":846,"width":479,"height":13}},{"id":"1fea47f8-fdac-447a-a821-d156a9b69b5f","block_type":"box","text":"range of public facilities, refunding of outstanding obligations an","page_number":310,"box":{"x":45,"y":862,"width":450,"height":12}},{"id":"3a0aebab-b29b-4f2b-ab69-066ed0f1d6a6","block_type":"box","text":"d obtaining funds for general operating expenses and loans to","page_number":310,"box":{"x":495,"y":862,"width":427,"height":12}},{"id":"8bcea808-641b-45c0-a8b1-2cf462b24ecc","block_type":"box","text":"other public institutions and facilities. In addition, certain types of bonds are issued by or on behalf of public authorities to finance","page_number":310,"box":{"x":46,"y":877,"width":904,"height":13}},{"id":"8bc286b8-73f1-465b-8fe4-71bc68d79aa5","block_type":"box","text":"II-6","page_number":310,"box":{"x":487,"y":917,"width":25,"height":9}},{"id":"09442b11-c877-49be-9f69-3298a9c5b7c3","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":310,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"6889eb45-3dea-458e-be3a-6f5af8d94bbf","block_type":"box","text":"various facilities operated for private profit. Such obligations are included within the term Municipal Securities if the interest paid","page_number":311,"box":{"x":45,"y":79,"width":898,"height":13}},{"id":"10dd3899-8124-480c-a83a-e3ad68e52706","block_type":"box","text":"thereon is excludable from gross income for Federal income tax purposes.","page_number":311,"box":{"x":45,"y":94,"width":511,"height":13}},{"id":"98f070ea-53ed-485f-8d79-a4f9c1dc4094","block_type":"box","text":"The two principal classifications of Municipal Securities are “general obligation” bonds and “revenue” or “special obligation”","page_number":311,"box":{"x":45,"y":118,"width":877,"height":12}},{"id":"5d381e6d-d60c-427f-a472-337a8ee64283","block_type":"box","text":"bonds. General obligation bonds are secured by the issuer’s pledg","page_number":311,"box":{"x":46,"y":133,"width":452,"height":13}},{"id":"f64bd616-8f27-4b48-aed8-8fedd254e18f","block_type":"box","text":"e of its faith, credit and taxing power for the repayment of","page_number":311,"box":{"x":499,"y":133,"width":405,"height":13}},{"id":"7d5b4699-cb79-41a9-bcce-727c3f1beae2","block_type":"box","text":"principal and the payment of interest. Revenue or special obligation bonds are payable only from the revenues derived from a","page_number":311,"box":{"x":45,"y":149,"width":870,"height":12}},{"id":"4ebefcc6-5ac6-4eb5-bcdd-35c8f2485c76","block_type":"box","text":"particular facility or class of facilities or, in some cases, from the proceeds of a special excise tax or other specific revenue source","page_number":311,"box":{"x":45,"y":164,"width":887,"height":13}},{"id":"e3161c5c-df76-49db-9992-303fe8daac48","block_type":"box","text":"such as from the user of the facility being financed. Private activity bonds (or “industrial development bonds” under pre-1986 law)","page_number":311,"box":{"x":46,"y":180,"width":907,"height":12}},{"id":"c41e1fc6-cc9e-43c2-a2a8-702895e48e3b","block_type":"box","text":"are in most cases revenue bonds and do not generally constitute the pledge of the credit or taxing power of the issuer of such","page_number":311,"box":{"x":46,"y":195,"width":863,"height":13}},{"id":"767f7c66-bb8f-4dda-85da-8edafa03dfd9","block_type":"box","text":"bonds. The repayment of the principal and the payment of interest on such private activity bonds depends solely on the ability of","page_number":311,"box":{"x":46,"y":211,"width":893,"height":12}},{"id":"54d30406-2cbf-4464-a7b6-2a44cf9696c9","block_type":"box","text":"the user of the facilities financed by the bonds to meet its financial ob","page_number":311,"box":{"x":45,"y":226,"width":480,"height":13}},{"id":"e8e3f8cd-12b7-4e34-879b-529612bb471e","block_type":"box","text":"ligation and the pledge, if any, of real and personal property","page_number":311,"box":{"x":526,"y":226,"width":417,"height":13}},{"id":"c0f74101-dc04-4d2a-bd97-c1c10253eb28","block_type":"box","text":"so financed as security for such payment. In addition, private activity bonds may pay interest that is subject to the Federal","page_number":311,"box":{"x":46,"y":242,"width":842,"height":12}},{"id":"b8db681f-0b1e-4490-8196-ebae3a139dee","block_type":"box","text":"alternative minimum tax. A Fund’s portfolio may include “moral","page_number":311,"box":{"x":46,"y":257,"width":452,"height":13}},{"id":"a5029ef2-0508-4070-9143-43093e1020c7","block_type":"box","text":"obligation” bonds, which are normally issued by special purpose","page_number":311,"box":{"x":503,"y":257,"width":448,"height":13}},{"id":"5b1081f2-fc9b-48ac-9d57-2554faa0f124","block_type":"box","text":"public authorities. If an issuer of moral obligation bonds is unable to meet its debt service obligations from current revenues, it","page_number":311,"box":{"x":45,"y":273,"width":877,"height":12}},{"id":"0ddfe482-550e-43fa-92a2-253c2423d825","block_type":"box","text":"may draw on a reserve fund, the restoration of which is a moral commitment but not a legal obligation of a state or municipality.","page_number":311,"box":{"x":45,"y":288,"width":897,"height":13}},{"id":"c8344864-34e4-48f9-967d-f7cbb91660fc","block_type":"box","text":"Yields on Municipal Securities are dependent on a variety of fa","page_number":311,"box":{"x":45,"y":311,"width":436,"height":13}},{"id":"1e7b77ba-c7b5-4259-879c-87f13b02a4eb","block_type":"box","text":"ctors, including the general condition of the money market and of","page_number":311,"box":{"x":481,"y":311,"width":457,"height":13}},{"id":"6f1806d8-f356-4fd9-abc4-689e66c9fc92","block_type":"box","text":"the municipal bond market, the size of a particular offering, the maturity of the obligation, and the rating of the issuer. The ability","page_number":311,"box":{"x":45,"y":327,"width":903,"height":13}},{"id":"a2957e2b-82f2-4b94-83b2-852f85c83fa5","block_type":"box","text":"of a Fund to achieve its investment objective is also dependent on the continuing ability of the issuers of the Municipal Securities in","page_number":311,"box":{"x":46,"y":342,"width":906,"height":13}},{"id":"72b35b38-3ef7-47e9-a5b6-9df3e4e50903","block_type":"box","text":"which the Fund invests to meet their obligations for the paym","page_number":311,"box":{"x":45,"y":358,"width":427,"height":13}},{"id":"088892a2-0ac7-456b-99a8-609ce664c702","block_type":"box","text":"ent of interest and the repayment of principal when due. There are","page_number":311,"box":{"x":473,"y":358,"width":460,"height":13}},{"id":"af209c55-098c-4816-b161-5f46f2d79614","block_type":"box","text":"variations in the risks involved in holding Municipal Securities, both within a particular classification and between classifications,","page_number":311,"box":{"x":45,"y":373,"width":897,"height":13}},{"id":"74cc3a61-20c9-46dd-9e51-17b30829da42","block_type":"box","text":"depending on numerous factors. Furthermore, the rights of hold","page_number":311,"box":{"x":46,"y":389,"width":443,"height":13}},{"id":"4a3d45d2-3a40-4dab-9da6-d8f503a14cae","block_type":"box","text":"ers of Municipal Securities and the obligations of the issuers of","page_number":311,"box":{"x":490,"y":389,"width":435,"height":13}},{"id":"9013f7d8-d49a-4d77-bb12-5dd5c23dd8cc","block_type":"box","text":"such Municipal Securities may be subject to applicable bankruptcy","page_number":311,"box":{"x":46,"y":404,"width":461,"height":13}},{"id":"adc28e31-f823-456b-acae-a8aad7638316","block_type":"box","text":", insolvency and similar laws and court decisions affecting the","page_number":311,"box":{"x":508,"y":404,"width":427,"height":13}},{"id":"ec2052e2-9ec4-4365-8cfa-d83d30695287","block_type":"box","text":"rights of creditors generally, and such laws, if any, which may be ena","page_number":311,"box":{"x":45,"y":420,"width":479,"height":13}},{"id":"9ea07a24-17e7-4d49-b23f-4c9ce7c1eb81","block_type":"box","text":"cted by Congress or state legislatures affecting specifically the","page_number":311,"box":{"x":524,"y":420,"width":425,"height":13}},{"id":"cb02d463-4631-4603-9cd1-70a312bf484b","block_type":"box","text":"rights of holders of Municipal Securities.","page_number":311,"box":{"x":45,"y":435,"width":281,"height":13}},{"id":"2f71d12a-3fd5-4244-9b58-be05c665e067","block_type":"box","text":"A Fund’s ability to distribute dividends exempt from Federal income tax will depend on the exclusion from gross income of the","page_number":311,"box":{"x":45,"y":459,"width":882,"height":12}},{"id":"aa41210b-2a6d-441e-bc55-4389e4acf875","block_type":"box","text":"interest income that it receives on the Municipal Securities in which it invests. A Fund will only purchase a Municipal Security if it","page_number":311,"box":{"x":45,"y":474,"width":902,"height":13}},{"id":"abaa75d5-8ba0-46b7-8702-787e35055b3f","block_type":"box","text":"is accompanied by an opinion of counsel to the issuer, which is delivered on the date of issuance of that security, that interest on","page_number":311,"box":{"x":45,"y":490,"width":889,"height":12}},{"id":"be8102cd-2cf4-41f2-a118-98bd8a20ca1c","block_type":"box","text":"such securities is excludable from gross income for Federal income tax purposes (the “tax exemption opinion”).","page_number":311,"box":{"x":46,"y":505,"width":774,"height":13}},{"id":"228c24e6-483d-40ec-8b3c-060e6f2b3540","block_type":"box","text":"Events occurring after the date of issuance of the Municipal Securities, however, may cause the interest on such securities to be","page_number":311,"box":{"x":45,"y":528,"width":877,"height":13}},{"id":"c159c4c7-5b7e-4c05-bfae-433769205de0","block_type":"box","text":"includable in gross income for Federal income tax purposes. For example, the Internal Revenue Code of 1986, as amended (the","page_number":311,"box":{"x":45,"y":544,"width":882,"height":13}},{"id":"2e30adae-b7ce-4d2b-918d-ff21bc2c0b0c","block_type":"box","text":"“Code”) establishes certain requirements, such as restrictions as","page_number":311,"box":{"x":47,"y":559,"width":440,"height":13}},{"id":"8dfc4645-5ca6-4e2a-bc4f-70362a8354db","block_type":"box","text":"to the investment of the proceeds of the issue, limitations as to the","page_number":311,"box":{"x":492,"y":559,"width":458,"height":13}},{"id":"84b536ab-cb4b-440d-9ede-1351dd4fd8c6","block_type":"box","text":"use of proceeds of such issue and the property financed by such","page_number":311,"box":{"x":46,"y":575,"width":438,"height":13}},{"id":"517c1da9-1b25-4b4d-8f59-a2481ed886a4","block_type":"box","text":"proceeds, and the payment of certain excess earnings to the","page_number":311,"box":{"x":489,"y":575,"width":411,"height":13}},{"id":"310c449c-24c5-4aaf-a906-86360d5b3174","block_type":"box","text":"Federal government, that must be met after the issuance of the Municipal Securities for interest on such securities to remain","page_number":311,"box":{"x":45,"y":590,"width":855,"height":13}},{"id":"eafc88f7-ca15-4d6d-af4f-ba763e6c5bad","block_type":"box","text":"excludable from gross income for Federal income tax purposes. The issuers and the conduit borrowers of the Municipal Securities","page_number":311,"box":{"x":46,"y":606,"width":900,"height":13}},{"id":"029d267e-1b7c-4e99-ad0d-9cbdf0122cce","block_type":"box","text":"generally covenant to comply with such requirements and the tax e","page_number":311,"box":{"x":45,"y":621,"width":465,"height":13}},{"id":"6aa6874a-7dda-4b2d-a4b0-d984b754d649","block_type":"box","text":"xemption opinion generally assumes continuing compliance","page_number":311,"box":{"x":510,"y":621,"width":414,"height":13}},{"id":"3becd1fe-aad3-49d4-ad6c-d93c0b4a03f7","block_type":"box","text":"with such requirements. Failure to comply with these continuing re","page_number":311,"box":{"x":45,"y":637,"width":465,"height":13}},{"id":"0fec1b90-99c5-436c-938d-1aa564006f49","block_type":"box","text":"quirements, however, may cause the interest on such Municipal","page_number":311,"box":{"x":511,"y":637,"width":440,"height":13}},{"id":"a6c3838b-229e-4f1d-bf13-7f1ac812fce3","block_type":"box","text":"Securities to be includable in gross income for Federal income tax purposes retroactive to their date of issue.","page_number":311,"box":{"x":46,"y":652,"width":747,"height":13}},{"id":"98d1f737-318f-47fa-a7ec-c751108e7fa8","block_type":"box","text":"In addition, the Internal Revenue Service (“IRS”) has an ongoing enforcement program that involves the audit of tax exempt","page_number":311,"box":{"x":45,"y":676,"width":865,"height":12}},{"id":"4b690f6a-ca2b-4cb7-b1e0-0155d065d274","block_type":"box","text":"bonds to determine whether an issue of bonds satisfies all of the requirements that must be met for interest on such bonds to be","page_number":311,"box":{"x":46,"y":691,"width":882,"height":13}},{"id":"d1993c68-4b14-4ba6-a476-e49c8d6324af","block_type":"box","text":"excludable from gross income for Federal income tax purposes.","page_number":311,"box":{"x":46,"y":707,"width":438,"height":12}},{"id":"634e68d4-ec31-41de-b3d6-039d859cbad2","block_type":"box","text":"From time to time, some of the Municipal Securities held by a","page_number":311,"box":{"x":490,"y":707,"width":428,"height":12}},{"id":"610c37f3-53ef-4a42-9162-afadbb5d7464","block_type":"box","text":"Fund may be the subject of such an audit by the IRS, and the IRS may determine that the interest on such securities is includable in","page_number":311,"box":{"x":45,"y":722,"width":907,"height":13}},{"id":"c5ae397d-3344-4bfe-b950-b094ed83f25c","block_type":"box","text":"gross income for Federal income tax purposes either because the IRS has taken a legal position adverse to the conclusion reached","page_number":311,"box":{"x":45,"y":738,"width":893,"height":12}},{"id":"294e0d34-0388-4a78-b4d5-3d88cb10ec64","block_type":"box","text":"by the counsel to the issuer in the tax exemption opinion or as a result of an action taken or not taken after the date of issue of","page_number":311,"box":{"x":46,"y":753,"width":879,"height":13}},{"id":"f269e42a-d364-4b27-8d5d-11b56e3b0f35","block_type":"box","text":"such obligation.","page_number":311,"box":{"x":46,"y":769,"width":109,"height":13}},{"id":"01efb818-6c03-40ae-965d-1c35e7bc4bf7","block_type":"box","text":"If interest paid on a Municipal Security in which a Fund invests is determined to be taxable subsequent to the Fund’s acquisition of","page_number":311,"box":{"x":45,"y":792,"width":908,"height":13}},{"id":"eab1b469-a9e7-4842-ada4-779646a1fc23","block_type":"box","text":"such security, the IRS may demand that such Fund pay taxes on the affected interest income and, if the Fund agrees to do so, its","page_number":311,"box":{"x":46,"y":807,"width":885,"height":13}},{"id":"35a1b1f3-7f5e-4911-beff-f6b3be42d0b2","block_type":"box","text":"yield could be adversely affected. If the interest paid on any Municipal Security held by a Fund is determined to be taxable, such","page_number":311,"box":{"x":45,"y":823,"width":887,"height":13}},{"id":"b92aaaae-6324-44d4-b968-2f8473c5db04","block_type":"box","text":"Fund will dispose of the security as soon as practicable. A determination that interest on a security held by a Fund is includable in","page_number":311,"box":{"x":45,"y":838,"width":899,"height":13}},{"id":"4314eaa7-b860-4fc4-b0cc-bdd887569bd0","block_type":"box","text":"gross income for Federal or state income tax purposes retroactively to its date of issue may, likewise, cause a portion of prior","page_number":311,"box":{"x":45,"y":854,"width":866,"height":13}},{"id":"2b190612-0739-4b31-b38e-d0b5eee6c8f8","block_type":"box","text":"distributions received by shareholders to be taxable to those shareholders in the year of receipt.","page_number":311,"box":{"x":46,"y":869,"width":657,"height":13}},{"id":"32ccceca-440b-4f07-909d-7a794ad6efc6","block_type":"box","text":"II-7","page_number":311,"box":{"x":487,"y":917,"width":25,"height":9}},{"id":"b02949df-f832-4a46-89af-6382676fae59","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":311,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"52d08808-b13a-4b79-bc3c-421190682a6f","block_type":"box","text":"From time to time, proposals have been introduced before Congress","page_number":312,"box":{"x":45,"y":79,"width":471,"height":13}},{"id":"90bf052e-3201-4b82-bf63-cb08f0b2ec8c","block_type":"box","text":"for the purpose of restricting or eliminating the Federal","page_number":312,"box":{"x":521,"y":79,"width":382,"height":13}},{"id":"bf155ed8-2894-48d4-9f73-b3ab189d27b8","block_type":"box","text":"income tax exclusion for interest on Municipal Securities. Similar proposals may be introduced in the future. If such a proposal","page_number":312,"box":{"x":45,"y":94,"width":881,"height":13}},{"id":"3d96c56c-766b-4b8e-98a3-ea4a818f07fa","block_type":"box","text":"were enacted, the ability of each Fund to pay “exempt-interest dividends” would be affected adversely and the Fund would","page_number":312,"box":{"x":45,"y":110,"width":854,"height":13}},{"id":"f60ffbdb-138e-4923-9343-fd083ee44285","block_type":"box","text":"re-evaluate its investment objectives and policies and consider changes in structure. See “Dividends and Taxes — Taxes.”","page_number":312,"box":{"x":45,"y":125,"width":840,"height":13}},{"id":"4181b4f7-eaa6-4eb2-81e2-a94f02744897","block_type":"box","text":"Municipal Securities — Derivative Products","page_number":312,"box":{"x":45,"y":151,"width":304,"height":13}},{"id":"985fdbae-deb4-4b90-a0f6-d9145bae896f","block_type":"box","text":". Derivative Products are typically structured by a bank, broker-dealer or other","page_number":312,"box":{"x":351,"y":151,"width":545,"height":13}},{"id":"81e18bbd-914d-443a-ab45-1657ed325d48","block_type":"box","text":"financial institution. A Derivative Product generally consists of a trust or partnership through which a Fund holds an interest in","page_number":312,"box":{"x":45,"y":166,"width":883,"height":13}},{"id":"6363af3c-6ca3-46d6-adf5-ee228bcbd580","block_type":"box","text":"one or more underlying bonds coupled with a right to sell (“put”) the Fund’s interest in the underlying bonds at par plus accrued","page_number":312,"box":{"x":46,"y":182,"width":893,"height":13}},{"id":"d490999d-d727-4efb-908c-93c36a0d9e89","block_type":"box","text":"interest to a financial institution (a “Liquidity Provider”). Typi","page_number":312,"box":{"x":45,"y":197,"width":435,"height":13}},{"id":"e4d4f84a-091d-40dc-a958-1eccfa9ddb60","block_type":"box","text":"cally, a Derivative Product is structured as a trust or partnership","page_number":312,"box":{"x":481,"y":197,"width":444,"height":13}},{"id":"cef523d3-c42c-43cd-9781-12b47b51da83","block_type":"box","text":"that provides for pass-through tax-exempt income. There are cu","page_number":312,"box":{"x":45,"y":213,"width":444,"height":13}},{"id":"0ac955c8-b2f9-4645-b6a9-0ecec03f1786","block_type":"box","text":"rrently three principal types of derivative structures: (1) “Tender","page_number":312,"box":{"x":490,"y":213,"width":445,"height":13}},{"id":"89d7132c-358c-41d5-a13e-e4f67a88bcea","block_type":"box","text":"Option Bonds,” which are instruments that grant the holder thereof the right to put an underlying bond at par plus accrued","page_number":312,"box":{"x":46,"y":228,"width":857,"height":13}},{"id":"c919f076-ff65-4f98-a386-327d7e34689c","block_type":"box","text":"interest at specified intervals to a Liquidity Provider; (2) “Swap","page_number":312,"box":{"x":45,"y":244,"width":438,"height":13}},{"id":"49369c2f-3d81-40d7-b18e-085b542a34a9","block_type":"box","text":"Products,” in which the trust or partnership swaps the payments","page_number":312,"box":{"x":488,"y":244,"width":447,"height":13}},{"id":"05d814b3-3e95-445a-ada6-d5e309fb7521","block_type":"box","text":"due on an underlying bond with a swap counterparty who agrees to pay a floating municipal money market interest rate; and (3)","page_number":312,"box":{"x":46,"y":259,"width":894,"height":13}},{"id":"71626bd1-5c99-4e14-8c4e-f8ec8ed35015","block_type":"box","text":"“Partnerships,” which allocate to the partners portions of inco","page_number":312,"box":{"x":47,"y":275,"width":432,"height":13}},{"id":"a64019b8-8c7d-4b27-b798-651e21d717a6","block_type":"box","text":"me, expenses, capital gains and losses associated with holding an","page_number":312,"box":{"x":480,"y":275,"width":449,"height":13}},{"id":"3439c895-bf15-4d69-a00a-91e5c0c27f27","block_type":"box","text":"underlying bond in accordance with a governing agreement. A Fund may also invest in other forms of short term Derivative","page_number":312,"box":{"x":46,"y":290,"width":858,"height":13}},{"id":"9c105554-3d7a-4dfd-b944-17b727643ae6","block_type":"box","text":"Products eligible for investment by money market funds.","page_number":312,"box":{"x":45,"y":306,"width":392,"height":13}},{"id":"e6da15b1-2af7-4c9e-a679-452f35e3ed08","block_type":"box","text":"Investments in Derivative Products raise certain tax, legal, regulatory and accounting issues that may not be presented by","page_number":312,"box":{"x":45,"y":331,"width":838,"height":13}},{"id":"ba611834-fcf0-4c0c-af3a-869223b42383","block_type":"box","text":"investments in municipal bonds. There is some risk that certain issues could be resolved in a manner that could adversely impact","page_number":312,"box":{"x":45,"y":347,"width":890,"height":13}},{"id":"a8ffa05f-aaf4-4366-8d33-fb8251c65714","block_type":"box","text":"the performance of a Fund. For example, the tax-exempt treatment of the interest paid to holders of Derivative Products is","page_number":312,"box":{"x":45,"y":362,"width":849,"height":13}},{"id":"b4cca0e2-9af8-4284-a5e4-1f0b54ff732d","block_type":"box","text":"premised on the legal conclusion that the holders of such Deri","page_number":312,"box":{"x":45,"y":378,"width":429,"height":13}},{"id":"c1ef510e-f0ab-4e3c-9dd7-d80f0494fb42","block_type":"box","text":"vative Products have an ownership interest in the underlying bonds.","page_number":312,"box":{"x":474,"y":378,"width":469,"height":13}},{"id":"9ab044a4-3536-414f-b7b1-6ac93427eff6","block_type":"box","text":"Were the IRS or any state taxing authority to issue an adverse","page_number":312,"box":{"x":45,"y":393,"width":428,"height":13}},{"id":"3d01aaf8-1649-4eaa-b401-46296b0eb962","block_type":"box","text":"ruling or take an adverse position with respect to the taxation of","page_number":312,"box":{"x":479,"y":393,"width":447,"height":13}},{"id":"7f98b984-ed4c-4249-9343-0dfa11e6902a","block_type":"box","text":"Derivative Products, there is a risk that the interest paid on such Derivative Products or, in the case of property taxes, the value of","page_number":312,"box":{"x":45,"y":409,"width":900,"height":13}},{"id":"488b668f-9516-490c-a5f3-1617251b0e83","block_type":"box","text":"such Fund to the extent represented by such Derivative Products, would be deemed taxable at the Federal and/or state level.","page_number":312,"box":{"x":46,"y":424,"width":856,"height":13}},{"id":"10b73528-831f-47db-a968-1a03025ac0c9","block_type":"box","text":"Before purchasing a Derivative Product, the Manager is required by the Funds’ procedures to conclude that the tax-exempt","page_number":312,"box":{"x":46,"y":450,"width":852,"height":13}},{"id":"dd50813c-6450-4290-a89c-f2259e73e760","block_type":"box","text":"security and the supporting short-term obligation involve minimal credit risks and are Eligible Securities under the Funds’","page_number":312,"box":{"x":46,"y":465,"width":840,"height":13}},{"id":"30654974-2014-4be8-a6cb-4abe6af1a5d6","block_type":"box","text":"Rule 2a-7 procedures. In evaluating the creditworthiness of the e","page_number":312,"box":{"x":46,"y":481,"width":447,"height":13}},{"id":"57b11802-ee13-489c-aa77-7cf1eb69a9d5","block_type":"box","text":"ntity obligated to purchase the tax-exempt security, the Manager","page_number":312,"box":{"x":494,"y":481,"width":450,"height":13}},{"id":"ff34e098-c03c-4205-b244-8b225a255813","block_type":"box","text":"will review periodically the entity’s relevant financial information.","page_number":312,"box":{"x":45,"y":496,"width":457,"height":13}},{"id":"2e139954-c988-4b7c-95dc-9997df41b8c0","block_type":"box","text":"Municipal Notes","page_number":312,"box":{"x":45,"y":522,"width":116,"height":12}},{"id":"bff53eca-c78c-488d-92bd-96e700752f08","block_type":"box","text":". Municipal notes are shorter term municipal debt obligati","page_number":312,"box":{"x":163,"y":522,"width":402,"height":12}},{"id":"8449ef18-77d3-4944-b76d-0168e7479c7d","block_type":"box","text":"ons. They may provide interim financing in anticipation","page_number":312,"box":{"x":565,"y":522,"width":388,"height":12}},{"id":"ce0b9ccf-da2e-4abd-b710-381b16134973","block_type":"box","text":"of tax collection, bond sales or revenue receipts. If there is a shortfall in the anticipated proceeds, the note may not be fully repaid","page_number":312,"box":{"x":46,"y":537,"width":897,"height":13}},{"id":"21fbd9f0-47a4-40e8-9657-6784f1023343","block_type":"box","text":"and a Fund may lose money.","page_number":312,"box":{"x":46,"y":553,"width":198,"height":12}},{"id":"b0ca0366-2493-4a40-acdd-a976b160656a","block_type":"box","text":"Municipal Commercial Paper","page_number":312,"box":{"x":45,"y":578,"width":206,"height":13}},{"id":"d71e29cf-be06-40cf-a5a4-b6c19818f024","block_type":"box","text":". Municipal commercial paper is generally unsecured and issued to meet short term financing needs.","page_number":312,"box":{"x":252,"y":578,"width":690,"height":13}},{"id":"dc500459-d146-4cb1-99bf-95b1673b8166","block_type":"box","text":"The lack of security presents some risk of loss to a Fund since, in the event of an issuer’s bankruptcy, unsecured creditors are","page_number":312,"box":{"x":45,"y":594,"width":864,"height":12}},{"id":"f3b0d61f-8cce-41f2-a74c-8e0890819a97","block_type":"box","text":"repaid only after the secured creditors are paid out of the assets, if any, that remain.","page_number":312,"box":{"x":45,"y":609,"width":580,"height":13}},{"id":"efad6857-9085-4df8-8d6b-9c67cd446884","block_type":"box","text":"Municipal Lease Obligations","page_number":312,"box":{"x":45,"y":635,"width":201,"height":12}},{"id":"0ee42719-3268-4625-8f65-4dd81daaea00","block_type":"box","text":". Also included within the general category of State Municipal Securities are Certificates of","page_number":312,"box":{"x":248,"y":635,"width":626,"height":12}},{"id":"79f44746-ecb7-4c88-8739-dc6ac2a0d9b5","block_type":"box","text":"Participation (“COPs”) issued by governmental authorities or en","page_number":312,"box":{"x":45,"y":650,"width":449,"height":13}},{"id":"8bdc5794-37dd-4d1f-a93e-f6246cda4bb6","block_type":"box","text":"tities to finance the acquisition or construction of equipment, land","page_number":312,"box":{"x":494,"y":650,"width":459,"height":13}},{"id":"2aa07644-ad0d-460a-93e6-dfa42e7b34e6","block_type":"box","text":"and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a conditional sales contract","page_number":312,"box":{"x":46,"y":666,"width":870,"height":12}},{"id":"6154d2f5-350d-4c0d-9187-68e90cccd1f7","block_type":"box","text":"(hereinafter collectively called “lease obligations”) relating t","page_number":312,"box":{"x":46,"y":681,"width":413,"height":13}},{"id":"a68371a1-6dba-4d68-9d76-17e68abcf777","block_type":"box","text":"o such equipment, land or facilities. Although lease obligations do not","page_number":312,"box":{"x":460,"y":681,"width":485,"height":13}},{"id":"cce7fdc8-cced-4217-a176-e8a8c4105546","block_type":"box","text":"constitute general obligations of the issuer for which the issuer’s","page_number":312,"box":{"x":45,"y":697,"width":443,"height":12}},{"id":"c960c847-ab7a-48b3-b85e-53d7dadc5335","block_type":"box","text":"unlimited taxing power is pledged, a lease obligation is frequently","page_number":312,"box":{"x":493,"y":697,"width":455,"height":12}},{"id":"77c2d201-7a93-41de-86c8-3d588df8b979","block_type":"box","text":"backed by the issuer’s covenant to budget for, appropriate and make the payments due under the lease obligation. However,","page_number":312,"box":{"x":46,"y":712,"width":861,"height":13}},{"id":"7f8920a5-446e-4bc9-9c58-dd1168d20f25","block_type":"box","text":"certain lease obligations contain “non-appropriation” clauses th","page_number":312,"box":{"x":45,"y":728,"width":445,"height":12}},{"id":"45616e35-3ce4-4ac3-9e8d-fa12bec51aa5","block_type":"box","text":"at provide that the issuer has no obligation to make lease or","page_number":312,"box":{"x":491,"y":728,"width":414,"height":12}},{"id":"424af653-fd72-4b36-b8c8-8a939f37b343","block_type":"box","text":"installment purchase payments in future years unless money is appropriated for such purpose on a yearly basis. Although “non","page_number":312,"box":{"x":45,"y":743,"width":886,"height":13}},{"id":"7bd5da0f-36dd-4afe-ab7f-f3000c82c9a0","block_type":"box","text":"appropriation” lease obligations are secured by the leased property, disposition of the property in the event of foreclosure might","page_number":312,"box":{"x":46,"y":759,"width":886,"height":12}},{"id":"da3e8d6b-5500-41b0-b23d-3fb7ca098eb0","block_type":"box","text":"prove difficult. The securities represent a type of financing that has not yet developed the depth of marketability associated with","page_number":312,"box":{"x":45,"y":774,"width":886,"height":13}},{"id":"4d5cd11b-387d-4ca4-9876-c9febc3f9289","block_type":"box","text":"more conventional securities. Certain investments in lease obligations may be illiquid.","page_number":312,"box":{"x":45,"y":790,"width":592,"height":12}},{"id":"43954356-f9c7-43d4-af9d-757e7d5946cc","block_type":"box","text":"Municipal Securities — Short-Term Maturity Standards","page_number":312,"box":{"x":45,"y":815,"width":386,"height":13}},{"id":"d431cd23-0923-4366-a38f-c50a4d721621","block_type":"box","text":". All of the investments of a Fund in Municipal Securities will be in","page_number":312,"box":{"x":432,"y":815,"width":462,"height":13}},{"id":"e25f605e-2909-43f8-a09d-ffc2828a65b8","block_type":"box","text":"securities with remaining maturities of 397 days or less. The dollar-weighted average maturity of each Fund’s portfolio will be","page_number":312,"box":{"x":46,"y":831,"width":873,"height":12}},{"id":"6ba8dfb7-2918-483a-94aa-800daa7d8a4b","block_type":"box","text":"60 days or less. For purposes of this investment policy, an obligation will be treated as having a maturity earlier than its stated","page_number":312,"box":{"x":46,"y":846,"width":874,"height":13}},{"id":"6fdeebe8-62d4-4b0a-9f88-5dadb259f68a","block_type":"box","text":"maturity date if such obligation has technical features that, i","page_number":312,"box":{"x":45,"y":862,"width":416,"height":12}},{"id":"ff24e597-ca53-4871-bbf5-fa2b97a6bfbd","block_type":"box","text":"n the judgment of the Manager, will result in the obligation being","page_number":312,"box":{"x":462,"y":862,"width":454,"height":12}},{"id":"791f04d6-d52a-4d4f-9994-2744fb6e6f90","block_type":"box","text":"valued in the market as though it has such earlier maturity.","page_number":312,"box":{"x":45,"y":877,"width":409,"height":13}},{"id":"e0ea4861-1382-433c-a60d-ca56cf7a81ce","block_type":"box","text":"II-8","page_number":312,"box":{"x":487,"y":917,"width":24,"height":9}},{"id":"20711209-db5b-45f5-9ab4-5fd3df605df1","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":312,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"6e41859b-234f-4b71-a823-cdda7e14bba8","block_type":"box","text":"The maturities of Variable Rate Demand Obligations (“VRDOs”) are deemed to be the longer of (i) the notice period required","page_number":313,"box":{"x":45,"y":79,"width":878,"height":13}},{"id":"ae2e24d6-7513-4531-a0a0-40fcc507a14c","block_type":"box","text":"before a Fund is entitled to receive payment of the principal amount of the VRDOs on demand or (ii) the period remaining until","page_number":313,"box":{"x":46,"y":94,"width":887,"height":13}},{"id":"38bb5dc1-2ac5-4acc-b9aa-2b9465ad0218","block_type":"box","text":"the VRDO’s next interest rate adjustment. If not redeemed by a F","page_number":313,"box":{"x":45,"y":110,"width":454,"height":13}},{"id":"2d198f4a-ea91-418f-bb18-c818b10e99c1","block_type":"box","text":"und through the demand feature, VRDOs mature on a specified","page_number":313,"box":{"x":500,"y":110,"width":443,"height":13}},{"id":"ddc1a937-ac7c-45aa-938c-75a0583347ec","block_type":"box","text":"date, which may range up to 30 years from the date of issuance. See “VRDOs” below.","page_number":313,"box":{"x":46,"y":125,"width":599,"height":13}},{"id":"3ec0fd01-3d95-476b-9260-ab2e1159fd46","block_type":"box","text":"Municipal Securities — Quality Standards","page_number":313,"box":{"x":45,"y":150,"width":293,"height":13}},{"id":"4f64c043-1bfe-4a84-a893-2b2c1a4e9599","block_type":"box","text":". A Fund’s portfolio investments in municipal notes and short term tax-exempt","page_number":313,"box":{"x":339,"y":150,"width":545,"height":13}},{"id":"bfa7d62b-6795-4faa-b5cc-83fc3ba1674e","block_type":"box","text":"commercial paper will be limited to those obligations that are (i) secu","page_number":313,"box":{"x":45,"y":165,"width":480,"height":13}},{"id":"df92418a-d70b-4830-b702-f9b3f0cf45d7","block_type":"box","text":"red by a pledge of the full faith and credit of the United States","page_number":313,"box":{"x":526,"y":165,"width":427,"height":13}},{"id":"1fb4551c-bd2a-400a-bc17-90297aa79bb7","block_type":"box","text":"or (ii) otherwise are determined by the Manager to present minimal credit risks to the Fund. A Fund’s investments in municipal","page_number":313,"box":{"x":46,"y":181,"width":881,"height":13}},{"id":"cfb04674-fb9a-4bc6-84f8-89ea2c0fff45","block_type":"box","text":"bonds will be in securities that have been determined by the Manager to present minimal credit risks to the Fund. In addition,","page_number":313,"box":{"x":46,"y":196,"width":869,"height":13}},{"id":"f75465fd-e1a6-435a-b73b-846b5c5bb60b","block_type":"box","text":"certain Funds may require that portfolio investments (or their issuers) receive minimum credit ratings from one or more NRSROs,","page_number":313,"box":{"x":45,"y":212,"width":902,"height":13}},{"id":"39139f8b-d7bc-4ed3-88a2-ed44d6624bf8","block_type":"box","text":"or if not rated, are determined by the Manager to be of comparable quality to securities that have received such rating(s). Certain","page_number":313,"box":{"x":46,"y":227,"width":895,"height":13}},{"id":"86bda488-77b6-497d-b84c-ccf7c2f947ae","block_type":"box","text":"tax-exempt obligations (primarily VRDOs) may be entitled to the be","page_number":313,"box":{"x":45,"y":243,"width":476,"height":13}},{"id":"7b0da6eb-28ed-460c-9a19-e5a193c6e9dd","block_type":"box","text":"nefit of letters of credit or similar credit enhancements issued","page_number":313,"box":{"x":522,"y":243,"width":421,"height":10}},{"id":"27a06e7d-7502-4abc-860f-a8dd5af83b7b","block_type":"box","text":"by financial institutions. In such instances, in assessing the quality","page_number":313,"box":{"x":46,"y":258,"width":454,"height":13}},{"id":"b7a03ad3-2c0b-4ab5-91c1-d14a45ffaf6b","block_type":"box","text":"of such instruments, the Trustees and the Manager will take into","page_number":313,"box":{"x":505,"y":258,"width":448,"height":13}},{"id":"39b420fa-a6af-4029-86b9-9cf70056de0b","block_type":"box","text":"account not only the creditworthiness of the issuers, but also the","page_number":313,"box":{"x":46,"y":274,"width":445,"height":13}},{"id":"226dfc3c-aced-4b56-bd8a-cb094f4c8a96","block_type":"box","text":"creditworthiness and type of obligation of the financial","page_number":313,"box":{"x":496,"y":274,"width":381,"height":13}},{"id":"e95e80e4-7a1b-4391-be0d-82180c1b0b96","block_type":"box","text":"institution. The type of obligation of the financial institution con","page_number":313,"box":{"x":45,"y":289,"width":448,"height":13}},{"id":"f4f2bd16-3de1-43f9-b909-f2604244ed57","block_type":"box","text":"cerns, for example, whether the letter of credit or similar credit","page_number":313,"box":{"x":494,"y":289,"width":436,"height":13}},{"id":"5271a3fc-7941-4653-8552-d7b11867e1d6","block_type":"box","text":"enhancement being issued is conditional or unconditional. Fo","page_number":313,"box":{"x":46,"y":305,"width":424,"height":13}},{"id":"3f73c638-779c-4c6c-9572-a278f1724e0d","block_type":"box","text":"r a description of debt ratings, see Appendix A —“Description of","page_number":313,"box":{"x":471,"y":305,"width":453,"height":13}},{"id":"f6a1b622-8b1a-4729-b728-bcb4acadd2d6","block_type":"box","text":"Bond Ratings.”","page_number":313,"box":{"x":46,"y":320,"width":105,"height":13}},{"id":"323e6edf-acc0-4bba-acb3-ab00c703d293","block_type":"box","text":"Certain Funds may not invest in any security issued by a depository","page_number":313,"box":{"x":46,"y":345,"width":467,"height":13}},{"id":"7ec6652f-d790-4f1a-ba2b-78aee8097cfd","block_type":"box","text":"institution unless such institution is organized and operating in","page_number":313,"box":{"x":518,"y":345,"width":435,"height":13}},{"id":"1ce135e8-5a0f-482a-b581-b4f1169d812c","block_type":"box","text":"the United States, has total assets of at least $1 billion and is fe","page_number":313,"box":{"x":45,"y":360,"width":434,"height":13}},{"id":"20222da0-57ce-44ce-9f96-588796379ba9","block_type":"box","text":"derally insured. While the types of money market securities in","page_number":313,"box":{"x":480,"y":360,"width":428,"height":13}},{"id":"6795eb1d-0735-4c2b-b915-c16b2af71ab4","block_type":"box","text":"which the Funds invest generally are considered to have low princip","page_number":313,"box":{"x":45,"y":376,"width":470,"height":13}},{"id":"35c12f80-aaf4-4c4d-bdb3-ca5cf5fd10c1","block_type":"box","text":"al risk, such securities are not completely risk free. There is a","page_number":313,"box":{"x":516,"y":376,"width":420,"height":13}},{"id":"31b424fc-fcd1-493b-a01e-94bb147082e0","block_type":"box","text":"risk of the failure of issuers or credit enhancers to meet thei","page_number":313,"box":{"x":45,"y":391,"width":411,"height":10}},{"id":"2cfc3726-86be-4559-ac4f-7c0136eead07","block_type":"box","text":"r principal and interest obligations. With respect to repurchase","page_number":313,"box":{"x":456,"y":391,"width":433,"height":13}},{"id":"1f6b722a-7970-453f-8e8a-967ff4bb0521","block_type":"box","text":"agreements and purchase and sale contracts, there is also the risk o","page_number":313,"box":{"x":46,"y":407,"width":462,"height":13}},{"id":"eed1f23f-4750-4d69-acfb-bf7a4b567d12","block_type":"box","text":"f the failure of the parties involved to repurchase at the agreed","page_number":313,"box":{"x":509,"y":407,"width":435,"height":13}},{"id":"159501df-6a18-47cc-9a5b-95efd65d8363","block_type":"box","text":"upon price, in which event each Fund may suffer time delays and incur costs or possible losses in connection with such","page_number":313,"box":{"x":46,"y":422,"width":821,"height":13}},{"id":"66ab2852-f22e-451f-897b-5cd55403fad8","block_type":"box","text":"transactions.","page_number":313,"box":{"x":45,"y":439,"width":87,"height":9}},{"id":"0e55004b-685b-471e-a773-5db1b686a5e9","block_type":"box","text":"Municipal Securities — Other Factors","page_number":313,"box":{"x":45,"y":462,"width":263,"height":13}},{"id":"943c2b22-2397-4842-bc7a-0d5ada52b97e","block_type":"box","text":". Management of the Funds will endeavor to be as fully invested as reasonably practicable in","page_number":313,"box":{"x":310,"y":462,"width":639,"height":13}},{"id":"542eb072-6321-49f2-b0e4-e854f7025c46","block_type":"box","text":"order to maximize the yield on each Fund’s portfolio. Not all short term municipal securities trade on the basis of same day","page_number":313,"box":{"x":46,"y":478,"width":856,"height":13}},{"id":"1c24afab-bec9-4056-b232-cccef909d2f8","block_type":"box","text":"settlements and, accordingly, a portfolio of such securities cannot be managed on a daily basis with the same flexibility as a","page_number":313,"box":{"x":46,"y":493,"width":854,"height":13}},{"id":"1850c01e-09d9-49fe-b8cf-52ca2758778f","block_type":"box","text":"portfolio of money market securities, which can be bought and sold on a same day basis. There may be times when a Fund has","page_number":313,"box":{"x":45,"y":509,"width":880,"height":13}},{"id":"02c27635-0a2a-4b24-905f-fcce74d9328a","block_type":"box","text":"uninvested cash resulting from an influx of cash due to large pu","page_number":313,"box":{"x":46,"y":524,"width":440,"height":13}},{"id":"d3713cd9-8080-4c97-91aa-58c5da6616e2","block_type":"box","text":"rchases of shares or the maturing of portfolio securities. A Fund","page_number":313,"box":{"x":487,"y":524,"width":442,"height":13}},{"id":"2cdd260a-e37e-4414-94d9-8b76755000c8","block_type":"box","text":"also may be required to maintain cash reserves or incur temporar","page_number":313,"box":{"x":46,"y":540,"width":451,"height":13}},{"id":"f98925d9-7f8a-43c5-906f-d38a44942674","block_type":"box","text":"y bank borrowings to make redemption payments, which are","page_number":313,"box":{"x":498,"y":540,"width":424,"height":13}},{"id":"429177da-f68c-4575-a1e7-1376909faa61","block_type":"box","text":"made on the same day the redemption request is received. Such in","page_number":313,"box":{"x":45,"y":555,"width":455,"height":13}},{"id":"0d3c16f3-7c4a-4d7c-8c1c-aa343d497867","block_type":"box","text":"ability to be invested fully would lower the yield on such Fund’s","page_number":313,"box":{"x":501,"y":555,"width":443,"height":13}},{"id":"5e22ea02-2841-439d-b244-58be05253af1","block_type":"box","text":"portfolio.","page_number":313,"box":{"x":45,"y":571,"width":65,"height":13}},{"id":"8648fadb-ba8d-4d8a-945d-c88bc9aab06c","block_type":"box","text":"Because certain Funds may at times invest a substantial portion of their assets in Municipal Securities secured by bank letters of","page_number":313,"box":{"x":46,"y":595,"width":883,"height":13}},{"id":"dcc0e994-a75e-4ae1-870e-36ab43bee71a","block_type":"box","text":"credit or guarantees, an investment in a Fund should be made with an","page_number":313,"box":{"x":45,"y":611,"width":485,"height":13}},{"id":"e1097814-5264-4b4d-9a24-839b578dcb02","block_type":"box","text":"understanding of the characteristics of the banking industry","page_number":313,"box":{"x":535,"y":611,"width":413,"height":13}},{"id":"0d033b58-78c7-4161-b9a4-fb5d8013b5ce","block_type":"box","text":"and the risks that such an investment in such credit enhanced securities may entail. Banks are subject to extensive governmental","page_number":313,"box":{"x":46,"y":626,"width":883,"height":13}},{"id":"b70fcbd6-f2b5-4e4d-abd3-1f8d406674b8","block_type":"box","text":"regulations that may limit both the amounts and types of loans","page_number":313,"box":{"x":45,"y":642,"width":437,"height":13}},{"id":"99fa271f-b021-4225-a612-6022e381f771","block_type":"box","text":"and other financial commitments that may be made and interest","page_number":313,"box":{"x":487,"y":642,"width":444,"height":13}},{"id":"4ef7e4b1-36b7-4fb3-ac97-93ed3ddf97d8","block_type":"box","text":"rates and fees that may be charged. The profitability of the banking industry is largely dependent on the availability and cost of","page_number":313,"box":{"x":45,"y":657,"width":883,"height":13}},{"id":"7952ba85-1fa2-4395-8675-71d4b2c032a1","block_type":"box","text":"capital funds for the purpose of financing lending operations under prevailing money market conditions. Furthermore, general","page_number":313,"box":{"x":45,"y":673,"width":876,"height":13}},{"id":"3056f421-85a4-49e1-a43a-77b5a1ec5896","block_type":"box","text":"economic conditions play an important part in the operations of this industry and exposure to credit losses arising from possible","page_number":313,"box":{"x":46,"y":688,"width":888,"height":13}},{"id":"5d74281c-181d-494b-b867-00921dd628b6","block_type":"box","text":"financial difficulties of borrowers might affect a ba","page_number":313,"box":{"x":45,"y":704,"width":352,"height":13}},{"id":"1622a9ad-30dd-4d1b-babf-8f162fa1d2d0","block_type":"box","text":"nk’s ability to meet its obligations under a letter of credit.","page_number":313,"box":{"x":398,"y":704,"width":397,"height":13}},{"id":"02e381fb-eca2-44b6-a9f2-2bbe5bf3e13a","block_type":"box","text":"Changes to the Code may limit the types and volume of securities","page_number":313,"box":{"x":46,"y":728,"width":453,"height":13}},{"id":"797d3a40-a25a-4883-815a-f54a0059ca8b","block_type":"box","text":"qualifying for the Federal income tax exemption of interest; this","page_number":313,"box":{"x":504,"y":728,"width":442,"height":13}},{"id":"916b7610-78a3-4caa-9c73-3b15d4fb6b92","block_type":"box","text":"may affect the availability of Municipal Securities for investment by the Funds, which could, in turn, have a negative impact on the","page_number":313,"box":{"x":45,"y":744,"width":907,"height":13}},{"id":"7e670c7a-c2ab-41e0-a9c4-e51389c81ee1","block_type":"box","text":"yield of the portfolios. A Fund reserves the right to suspend or other","page_number":313,"box":{"x":45,"y":759,"width":472,"height":13}},{"id":"b6ee9ab3-ba81-4361-b113-d18b3349d575","block_type":"box","text":"wise limit sales of its shares if, as a result of difficulties in","page_number":313,"box":{"x":517,"y":759,"width":395,"height":13}},{"id":"cd4796fc-2aba-4756-9647-207d79df910d","block_type":"box","text":"acquiring portfolio securities or otherwise, it is determined that it is not in the interests of the Fund’s shareholders to issue","page_number":313,"box":{"x":46,"y":775,"width":842,"height":13}},{"id":"ad6a7240-d31a-4111-9c97-f5f65fc03b28","block_type":"box","text":"additional shares.","page_number":313,"box":{"x":46,"y":790,"width":120,"height":10}},{"id":"1d2286b2-4a8d-4fe7-8a0a-db39d9b9118a","block_type":"box","text":"VRDOs","page_number":313,"box":{"x":47,"y":815,"width":56,"height":10}},{"id":"7a37b5e6-e020-472d-82db-cb42d77842e4","block_type":"box","text":". VRDOs are tax-exempt obligations that contain a floatin","page_number":313,"box":{"x":104,"y":815,"width":405,"height":13}},{"id":"6c2f774d-c9a0-405e-ab22-7d8ea7be0361","block_type":"box","text":"g or variable interest rate adjustment formula and right of","page_number":313,"box":{"x":510,"y":815,"width":402,"height":13}},{"id":"b6e8421c-6a50-4148-b064-ca3ffdf2f030","block_type":"box","text":"demand on the part of the holder thereof to receive payment of the unpaid balance plus accrued interest upon a short notice","page_number":313,"box":{"x":46,"y":830,"width":858,"height":13}},{"id":"e30e2a48-dbc1-4597-bafc-98854f9a0297","block_type":"box","text":"period not to exceed seven days. There is, however, the possibility","page_number":313,"box":{"x":45,"y":846,"width":457,"height":13}},{"id":"104140fc-4ee8-48ca-b9bd-04b62c4c6a4f","block_type":"box","text":"that because of default or insolvency the demand feature of","page_number":313,"box":{"x":507,"y":846,"width":411,"height":13}},{"id":"bf1ce199-79f7-489a-935f-1810ad619a03","block_type":"box","text":"VRDOs may not be honored. The interest rates are adjustable at periodic intervals to some prevailing market rate of the VRDOs","page_number":313,"box":{"x":45,"y":861,"width":894,"height":13}},{"id":"b82f29fc-d1ab-472e-8f7f-db3d97fa67c4","block_type":"box","text":"at approximately the par value of the VRDOs on the adjustment date. The adjustment may be based upon the Securities Industry","page_number":313,"box":{"x":46,"y":877,"width":896,"height":13}},{"id":"7ace5fb8-1555-4532-893b-666cc9f962b9","block_type":"box","text":"II-9","page_number":313,"box":{"x":487,"y":917,"width":25,"height":9}},{"id":"f85bf4c5-8b1a-4ea6-b7bc-8d3c827fb177","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":313,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"640c71d1-4931-420d-820b-5b5e20de60a7","block_type":"box","text":"and Financial Markets Association (“SIFMA”) Municipal Swap Index or some other appropriate interest rate adjustment index.","page_number":314,"box":{"x":46,"y":79,"width":888,"height":13}},{"id":"88118401-9b2d-4ed0-b6f9-631c9f9d7e1a","block_type":"box","text":"Each Fund may invest in all types of tax-exempt instruments currently outstanding or to be issued in the future that satisfy its","page_number":314,"box":{"x":45,"y":94,"width":869,"height":13}},{"id":"f5ca4985-b0dd-45b9-bce1-9369dbb1f6be","block_type":"box","text":"short term maturity and quality standards.","page_number":314,"box":{"x":46,"y":110,"width":294,"height":13}},{"id":"9d8c0ce6-db91-4e88-bda7-71fca64fb223","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, the","page_number":314,"box":{"x":46,"y":132,"width":439,"height":12}},{"id":"e82953b2-7201-4b19-b840-53014fbbf0a7","block_type":"box","text":"VRDOs are not comparable to fixed rate securities. A Fund’s yield","page_number":314,"box":{"x":490,"y":132,"width":461,"height":12}},{"id":"7e408362-58e9-4569-85ca-953bbade32f2","block_type":"box","text":"on VRDOs will decline and its shareholders will forego the opportun","page_number":314,"box":{"x":46,"y":147,"width":479,"height":13}},{"id":"7392f64d-d302-46af-b743-8ed02f21f24a","block_type":"box","text":"ity for capital appreciation during periods when prevailing","page_number":314,"box":{"x":525,"y":147,"width":405,"height":13}},{"id":"c4d693ab-3d82-44d9-8555-a3ba23d55d99","block_type":"box","text":"interest rates have declined. On the other hand, during periods where prevailing interest rates have increased, a Fund’s yield on","page_number":314,"box":{"x":45,"y":163,"width":879,"height":12}},{"id":"e5007bf0-488a-498e-bb64-82132bdc6297","block_type":"box","text":"VRDOs will increase and its shareholders will have a reduced risk of capital depreciation.","page_number":314,"box":{"x":45,"y":178,"width":621,"height":13}},{"id":"b7a1b76e-9d92-47fd-a738-6905e8f4a042","block_type":"box","text":"Negative Interest Rate Scenarios.","page_number":314,"box":{"x":45,"y":201,"width":230,"height":12}},{"id":"7a03e4b7-f95d-4e59-a7d6-de1d59bc2884","block_type":"box","text":"Should a negative interest rate scenario ever occur that causes a government or retail money","page_number":314,"box":{"x":282,"y":200,"width":636,"height":13}},{"id":"73e73be2-0a9f-4181-aebe-3716f43867b1","block_type":"box","text":"market fund to have a negative gross yield, the fund may account for the negative gross yield by either using a floating NAV or a","page_number":314,"box":{"x":45,"y":216,"width":893,"height":12}},{"id":"ce1c37a3-5e01-4af2-b6a6-d0fa3f40db20","block_type":"box","text":"reverse distribution mechanism that seeks to maintain a stable ne","page_number":314,"box":{"x":45,"y":231,"width":451,"height":10}},{"id":"22bb5369-f84c-4440-a825-e511e7cddcfd","block_type":"box","text":"t asset value of the fund by cancelling shareholders’ shares in the","page_number":314,"box":{"x":496,"y":231,"width":447,"height":13}},{"id":"fb9c5b85-51e5-453c-800c-0d18716330d3","block_type":"box","text":"amount of the negative gross yield. If a fund converts to a floating NAV, any losses the fund experiences due to negative interest","page_number":314,"box":{"x":46,"y":247,"width":887,"height":12}},{"id":"5c33fb15-f8ec-4093-b353-29860c8d413a","block_type":"box","text":"rates will be reflected in a declining NAV per share. Under a reverse distribution mechanism, shareholders in a fund would observe","page_number":314,"box":{"x":45,"y":262,"width":908,"height":13}},{"id":"1f728b8f-8c92-4c0d-a402-e768c975903a","block_type":"box","text":"a stable share price but a declining number of shares for their investment. This means that such an investor would lose money","page_number":314,"box":{"x":46,"y":278,"width":871,"height":12}},{"id":"d31279de-3518-4579-8c16-3d27a876e874","block_type":"box","text":"when the fund cancels shares. In either situation, the Board will n","page_number":314,"box":{"x":45,"y":293,"width":453,"height":12}},{"id":"30f7db84-6542-46f3-a301-65ea78333507","block_type":"box","text":"eed to determine that the approach is in the best interests of the","page_number":314,"box":{"x":499,"y":293,"width":439,"height":13}},{"id":"90683b4c-4976-461e-a093-ab59d3796c0a","block_type":"box","text":"fund and will need to ensure shareholders are provided adequate disclosures around the consequences of the approach chosen by","page_number":314,"box":{"x":45,"y":309,"width":895,"height":12}},{"id":"2e413276-18b2-4b32-b0fd-558bf09d4999","block_type":"box","text":"the Board for the fund.","page_number":314,"box":{"x":45,"y":324,"width":159,"height":10}},{"id":"c62a99ff-104c-4003-bc48-97775f146391","block_type":"box","text":"Operational and Technology Risks.","page_number":314,"box":{"x":46,"y":346,"width":248,"height":13}},{"id":"773df3ae-1efa-445a-8801-958ccd36fb29","block_type":"box","text":"Each Fund and the entities with which it interacts directly or indirectly are susceptible to","page_number":314,"box":{"x":301,"y":346,"width":612,"height":13}},{"id":"874273a2-30e0-420e-8cc7-ae0b8be213d5","block_type":"box","text":"operational and technology risks, including those related","page_number":314,"box":{"x":46,"y":362,"width":392,"height":12}},{"id":"bf274e4e-8497-4989-920d-dbb6f55a11b6","block_type":"box","text":"to human errors, processing errors, communication errors, systems","page_number":314,"box":{"x":443,"y":362,"width":463,"height":12}},{"id":"bfb6c23b-0de2-4187-b71f-b626f007ea8c","block_type":"box","text":"failures, cybersecurity incidents, and the use of artificial intellig","page_number":314,"box":{"x":45,"y":377,"width":436,"height":13}},{"id":"64b15187-5c08-486a-9489-2716c5098fc0","block_type":"box","text":"ence and machine learning (“AI”), which may result in losses for a","page_number":314,"box":{"x":482,"y":377,"width":460,"height":13}},{"id":"9d50c56f-14c2-47d3-8232-a023d73be65c","block_type":"box","text":"Fund and its shareholders or impair a Fund’s operations. These entities include, but are not limited to, a Fund’s adviser,","page_number":314,"box":{"x":45,"y":393,"width":829,"height":12}},{"id":"f814abee-cef0-4d29-b754-19e54da9d8d0","block_type":"box","text":"administrator, distributor, other service providers (e.g., index a","page_number":314,"box":{"x":46,"y":408,"width":436,"height":13}},{"id":"bb4f7d63-aa10-4eea-9972-cf27f1364c25","block_type":"box","text":"nd benchmark providers, accountants, custodians, and transfer","page_number":314,"box":{"x":482,"y":408,"width":437,"height":13}},{"id":"a9ad8c40-22d1-4998-a363-84ffbea30812","block_type":"box","text":"agents), financial intermediaries, counterparties, market makers, Aut","page_number":314,"box":{"x":46,"y":424,"width":475,"height":12}},{"id":"358c42c8-93b3-46fe-960d-a6eb6d7721bd","block_type":"box","text":"horized Participants, listing exchanges, other financial market","page_number":314,"box":{"x":522,"y":424,"width":427,"height":12}},{"id":"4c55afd3-2b1d-423e-b746-16ef97cc4eb0","block_type":"box","text":"operators, and governmental authorities, as applicable. Operational and technology risks for the issuers in which a Fund invests","page_number":314,"box":{"x":46,"y":439,"width":885,"height":13}},{"id":"bb874a6b-4a8e-4441-85ce-e5b24fec53f6","block_type":"box","text":"could also result in material adverse consequences for such issuers and may cause a Fund’s investments in such issuers to lose","page_number":314,"box":{"x":45,"y":455,"width":866,"height":12}},{"id":"7ede6a72-160a-4743-a30e-2fed95f5a927","block_type":"box","text":"value. A Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":314,"box":{"x":45,"y":470,"width":664,"height":13}},{"id":"df960cf5-9dde-4b5f-883e-935cc15bb113","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unint","page_number":314,"box":{"x":46,"y":492,"width":457,"height":13}},{"id":"fa9dc5d1-f2a2-4a4e-83a8-e8f1bd6aff2d","block_type":"box","text":"entional events against an issuer in which a Fund invests, a Fund","page_number":314,"box":{"x":504,"y":492,"width":447,"height":13}},{"id":"aa0277ac-0034-4a30-b6a3-a0d90d2ceeb9","block_type":"box","text":"or any of its service providers. They include, but are not limited to, gaining unauthorized access to systems, misappropriating","page_number":314,"box":{"x":46,"y":507,"width":866,"height":13}},{"id":"202d6878-5b3f-46c6-bd97-3716e4df8ad8","block_type":"box","text":"assets or sensitive information, corrupting or destroying data, and causing operational disruption. Geopolitical tension may","page_number":314,"box":{"x":46,"y":523,"width":855,"height":13}},{"id":"8b1c95ce-bcfb-4296-adbe-c3d7e1ac621a","block_type":"box","text":"increase the scale and sophistication of deliberate attacks, partic","page_number":314,"box":{"x":45,"y":538,"width":443,"height":13}},{"id":"acb7861e-b9ab-4080-b470-e3b1e1794d60","block_type":"box","text":"ularly those from nation states or from entities with nation state","page_number":314,"box":{"x":489,"y":538,"width":444,"height":13}},{"id":"a4e6c127-79e1-4749-88cf-299e817046bc","block_type":"box","text":"backing. Cybersecurity incidents may result in any of the followin","page_number":314,"box":{"x":46,"y":554,"width":455,"height":13}},{"id":"95d000f5-9718-496a-8907-4bccf5623f9f","block_type":"box","text":"g: financial losses; interference with a Fund’s ability to calculate","page_number":314,"box":{"x":502,"y":554,"width":441,"height":13}},{"id":"23dfdef1-10a0-47b4-ba05-ab4f81626d97","block_type":"box","text":"its NAV; disclosure of confidential information; impediment","page_number":314,"box":{"x":45,"y":569,"width":419,"height":13}},{"id":"03f191b4-3598-4eab-8db9-3fc11dbe95a9","block_type":"box","text":"s to trading; submission of erroneous trades by a Fund or erroneous","page_number":314,"box":{"x":465,"y":569,"width":470,"height":13}},{"id":"9e644e87-011e-4f9c-ae81-2b54878c5319","block_type":"box","text":"subscription or redemption orders; the inability of a Fund or its serv","page_number":314,"box":{"x":46,"y":585,"width":471,"height":13}},{"id":"9f636ecc-7426-4c06-a866-578da33e9f46","block_type":"box","text":"ice providers to transact business; violations of applicable","page_number":314,"box":{"x":518,"y":585,"width":398,"height":13}},{"id":"20e106b9-cd0c-43b9-8195-334e1fe485aa","block_type":"box","text":"privacy and other laws; regulatory fines; penalties; reputationa","page_number":314,"box":{"x":45,"y":600,"width":434,"height":13}},{"id":"00b47d4e-eae3-48ca-ab08-84bec9bb46e6","block_type":"box","text":"l damage; reimbursement or other compensation costs; and other","page_number":314,"box":{"x":479,"y":600,"width":452,"height":13}},{"id":"61ffbbd8-3798-41ee-9b55-37d100e4928a","block_type":"box","text":"legal and compliance expenses. 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AI technologies may also allow the unintended introduction of","page_number":315,"box":{"x":46,"y":156,"width":836,"height":13}},{"id":"9d3650f5-327e-46f4-a466-71a30a8d737a","block_type":"box","text":"vulnerabilities into infrastructures and applications. To the ex","page_number":315,"box":{"x":45,"y":172,"width":428,"height":13}},{"id":"83e91f8d-3c7d-4dbf-a234-4f97a0f47ea4","block_type":"box","text":"tent that a Fund or its portfolio investments are exposed to the risks","page_number":315,"box":{"x":474,"y":172,"width":470,"height":13}},{"id":"b5500d9c-31c6-425d-810c-f991c68bdbf5","block_type":"box","text":"of AI technology use, any such inaccuracies or errors could have adverse impacts on a Fund or its investments.","page_number":315,"box":{"x":46,"y":187,"width":764,"height":13}},{"id":"a1a18db9-5c36-47cd-955a-d65fe27a6e3a","block_type":"box","text":"Regulations related to AI technology could also impose certain ob","page_number":315,"box":{"x":46,"y":209,"width":456,"height":13}},{"id":"e7a50f9c-985f-43f2-ae18-fd36ad8cefb3","block_type":"box","text":"ligations and costs related to monitoring and compliance. 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In","page_number":315,"box":{"x":467,"y":256,"width":406,"height":13}},{"id":"7213392d-fcd8-4db2-adb2-1c7b592b1a83","block_type":"box","text":"October 2023, an executive order established new standards for AI safety and security. 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The full extent of current or future risks related","page_number":315,"box":{"x":489,"y":355,"width":424,"height":13}},{"id":"dd187df1-fe4e-4f54-9553-00be5d0824c0","block_type":"box","text":"thereto is not possible to predict, and a Fund may not be able to an","page_number":315,"box":{"x":45,"y":371,"width":466,"height":12}},{"id":"5af5e0e1-0dd2-44ca-8c7a-0444d7404c30","block_type":"box","text":"ticipate, prevent, mitigate, or remediate all of the potential","page_number":315,"box":{"x":511,"y":371,"width":405,"height":12}},{"id":"01c27301-b143-41be-8a24-e9e09d89e8fb","block_type":"box","text":"risks, challenges, or impacts of such changes.","page_number":315,"box":{"x":45,"y":386,"width":311,"height":13}},{"id":"41cf89e6-32f4-4535-a0bb-e0dfdbf9243a","block_type":"box","text":"While each Fund’s service providers are required to have appropr","page_number":315,"box":{"x":45,"y":408,"width":453,"height":13}},{"id":"776eec0a-be3e-4663-80f4-33c48f2d586a","block_type":"box","text":"iate operational, information security and cybersecurity risk","page_number":315,"box":{"x":499,"y":408,"width":414,"height":13}},{"id":"6d9effca-d74f-4b3d-85d4-4ee4d81aa0f7","block_type":"box","text":"management policies and procedures, their methods of risk management may differ from those of a Fund in the setting of","page_number":315,"box":{"x":45,"y":424,"width":843,"height":12}},{"id":"a4fb4aef-6d51-45e4-9eb3-fad3b47b5a7a","block_type":"box","text":"priorities, the personnel and resources available or the effectiveness of relevant controls. 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Regulators continue to develop new rules and sta","page_number":315,"box":{"x":45,"y":585,"width":435,"height":13}},{"id":"9be000f7-9e87-4f0d-bb71-6cb5b142885d","block_type":"box","text":"ndards related to cybersecurity and data protection. Compliance","page_number":315,"box":{"x":481,"y":585,"width":446,"height":13}},{"id":"f9766c5b-78da-4aae-9d23-d249ab7da22e","block_type":"box","text":"with evolving regulations can be demanding and costly, requiri","page_number":315,"box":{"x":45,"y":600,"width":436,"height":13}},{"id":"eaf28b03-2af4-454d-9337-535368c67b6a","block_type":"box","text":"ng substantial resources to monitor and implement required","page_number":315,"box":{"x":482,"y":600,"width":415,"height":13}},{"id":"86e36041-e153-40dd-a373-a8d49c34b47f","block_type":"box","text":"changes.","page_number":315,"box":{"x":45,"y":616,"width":58,"height":13}},{"id":"9e7ec6ac-d98a-4707-b82e-82294a235b80","block_type":"box","text":"Purchase of Securities with Fixed Price “Puts.”","page_number":315,"box":{"x":45,"y":638,"width":331,"height":13}},{"id":"afcf6495-1cd4-4223-bc13-c98c2bdb6d80","block_type":"box","text":"Certain Funds have authority to purchase fixed rate Municipal Securities and, for","page_number":315,"box":{"x":380,"y":638,"width":564,"height":13}},{"id":"ef7a7da0-dc81-4f39-9759-08e8d5ecb502","block_type":"box","text":"a price, simultaneously acquire the right to sell such securities back to the seller at an agreed-upon rate at any time during a stated","page_number":315,"box":{"x":46,"y":653,"width":899,"height":13}},{"id":"7ca9953a-3034-4846-ae34-27e5e56cf22a","block_type":"box","text":"period or on a certain date. Such a right is generally denoted as a fixed price put. 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Repurchase agreements may be entered into only with a member","page_number":315,"box":{"x":483,"y":737,"width":458,"height":13}},{"id":"c719dfca-1298-4420-9fbd-e01b04fc21db","block_type":"box","text":"bank of the Federal Reserve System or primary dealer in U.S. Government securities or an affiliate thereof that meets the","page_number":315,"box":{"x":46,"y":753,"width":834,"height":13}},{"id":"5e154135-8fdf-4dce-9f90-43f7b866abed","block_type":"box","text":"creditworthiness standards adopted by the Manager. 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One","page_number":315,"box":{"x":483,"y":846,"width":447,"height":13}},{"id":"070e695f-5151-4764-80d2-d532a215eb6e","block_type":"box","text":"common type of repurchase agreement a Fund may enter into is a “tr","page_number":315,"box":{"x":45,"y":861,"width":480,"height":13}},{"id":"4e2107a9-558f-4bda-a5ec-4a5c4cd0d815","block_type":"box","text":"i-party” repurchase agreement. In “tri-party” repurchase","page_number":315,"box":{"x":526,"y":861,"width":394,"height":13}},{"id":"d077ff57-2479-4fbf-b2f2-7825abd56e9c","block_type":"box","text":"agreements, an unaffiliated third party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":315,"box":{"x":46,"y":877,"width":878,"height":13}},{"id":"d4daddff-4511-462d-8d52-bb86bb6a1ff4","block_type":"box","text":"II-11","page_number":315,"box":{"x":482,"y":917,"width":33,"height":9}},{"id":"445a4764-b9c8-44d2-86b0-4d7108985571","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":315,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"33ce0bc9-5336-431a-9811-b516b24c7aad","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians. In any repurchase transaction to which a Fund is a party,","page_number":316,"box":{"x":45,"y":79,"width":901,"height":12}},{"id":"e9c35e73-89ca-4175-928c-793554616406","block_type":"box","text":"collateral for a repurchase agreement may include cash items and obligations issued by the U.S. Government or its agencies or","page_number":316,"box":{"x":45,"y":94,"width":873,"height":13}},{"id":"1b704e50-e110-4081-8cb2-1184a9fa5146","block_type":"box","text":"instrumentalities. Collateral, however, is not limited to the foregoi","page_number":316,"box":{"x":45,"y":109,"width":458,"height":13}},{"id":"5f80f675-4d41-4fd6-a4dd-312a26bbabca","block_type":"box","text":"ng and may include, for example, obligations rated below the","page_number":316,"box":{"x":504,"y":109,"width":426,"height":13}},{"id":"753e58e6-adf7-49b2-8873-e1806fe11408","block_type":"box","text":"highest category by NRSROs, including collateral that may be below investment grade. Collateral for a repurchase agreement may","page_number":316,"box":{"x":45,"y":125,"width":906,"height":13}},{"id":"9b9ff01f-c62b-47bf-82d9-1ca1e8e5fec5","block_type":"box","text":"also include securities that a Fund could not hold directly without the repurchase obligation. Irrespective of the type of collateral","page_number":316,"box":{"x":46,"y":140,"width":889,"height":13}},{"id":"fc5b5e77-b51d-4968-ad62-fa3eb7ea0510","block_type":"box","text":"underlying the repurchase agreement, the Fund must determin","page_number":316,"box":{"x":46,"y":156,"width":430,"height":12}},{"id":"3f9f7aa3-4703-4669-b1b5-82e9a524cb93","block_type":"box","text":"e that a repurchase obligation with a particular counterparty","page_number":316,"box":{"x":477,"y":156,"width":420,"height":12}},{"id":"c6c4e80a-9604-48d2-9b06-2205a92d2630","block_type":"box","text":"involves minimal credit risk to the Fund and otherwise satisfie","page_number":316,"box":{"x":45,"y":171,"width":430,"height":10}},{"id":"ffe5caff-4fa5-41b7-b775-2eb3ec85ebb7","block_type":"box","text":"s any additional credit quality standards applicable to the Fund.","page_number":316,"box":{"x":476,"y":171,"width":441,"height":13}},{"id":"3cca9514-9f93-4314-889b-cbda04a2411c","block_type":"box","text":"In the event of default by the seller under a repurchase agreement construed to be a collateralized loan, the underlying securities","page_number":316,"box":{"x":45,"y":192,"width":884,"height":13}},{"id":"16d97fcd-3e0b-4b34-a026-97581e59d18f","block_type":"box","text":"are not owned by the Fund but only constitute collateral for the seller’s obligation to pay the repurchase price. Therefore, a Fund","page_number":316,"box":{"x":46,"y":208,"width":893,"height":12}},{"id":"a32ddad3-aec7-4d7a-a399-d126103b31c2","block_type":"box","text":"may suffer time delays and incur costs or possible losses in c","page_number":316,"box":{"x":45,"y":223,"width":417,"height":13}},{"id":"93106ecd-73f1-4a94-aab9-8e44ef440684","block_type":"box","text":"onnection with the disposition of the collateral. In the event of a","page_number":316,"box":{"x":462,"y":223,"width":444,"height":13}},{"id":"20721372-1392-4b4c-9bc5-788109c83413","block_type":"box","text":"default under a repurchase agreement that is construed to be a collateralized loan, instead of the contractual fixed rate of return,","page_number":316,"box":{"x":46,"y":238,"width":888,"height":13}},{"id":"e6fd52a0-d2b7-4a5b-bb72-32975a5592b9","block_type":"box","text":"the rate of return to a Fund will depend upon intervening fluctuations of the market value of such security and the accrued interest","page_number":316,"box":{"x":45,"y":254,"width":906,"height":13}},{"id":"e037e922-9d16-46a7-b233-105b36209e58","block_type":"box","text":"on the security. In such event, a Fund would have rights against the seller for breach of contract with respect to any losses arising","page_number":316,"box":{"x":46,"y":269,"width":893,"height":13}},{"id":"41321767-17f7-4107-b483-70d9cefb16a0","block_type":"box","text":"from market fluctuations following the failure of the seller to p","page_number":316,"box":{"x":45,"y":284,"width":436,"height":13}},{"id":"2daa55fe-450d-4a1b-8436-4bd4a97d4843","block_type":"box","text":"erform. In general, for Federal income tax purposes, repurchase","page_number":316,"box":{"x":482,"y":284,"width":441,"height":13}},{"id":"24ba6f64-c713-4dbf-ae16-42eed4aae7cb","block_type":"box","text":"agreements are treated as collateralized loans secured by the secu","page_number":316,"box":{"x":46,"y":300,"width":449,"height":13}},{"id":"153c782b-0549-469d-8393-15c65ea01c2c","block_type":"box","text":"rities “sold.” Therefore, amounts earned under such agreements,","page_number":316,"box":{"x":495,"y":300,"width":448,"height":13}},{"id":"15a91cb2-ecf8-49aa-b539-26661c481e68","block_type":"box","text":"even if the underlying securities are tax-exempt securities, will","page_number":316,"box":{"x":46,"y":315,"width":428,"height":13}},{"id":"fc77e887-63d0-4d0d-b55c-92cdf6d49fd9","block_type":"box","text":"not be considered tax-exempt interest. From time to time, a Fund","page_number":316,"box":{"x":479,"y":315,"width":453,"height":13}},{"id":"e62c38d0-dd78-44ce-a2c9-e8f21891bf7a","block_type":"box","text":"also may invest in money market securities pursuant to purchase and","page_number":316,"box":{"x":46,"y":331,"width":477,"height":12}},{"id":"b58bf2c7-d2ca-49aa-85f6-d7143ca0648f","block_type":"box","text":"sale contracts. While purchase and sale contracts are similar","page_number":316,"box":{"x":528,"y":331,"width":416,"height":12}},{"id":"d4db01d6-bb03-4fd6-98e5-df0885aaadcf","block_type":"box","text":"to repurchase agreements, purchase and sale contracts are struct","page_number":316,"box":{"x":45,"y":346,"width":445,"height":13}},{"id":"73e95b71-7e0b-4a96-b15c-cca9fad00518","block_type":"box","text":"ured so as to be in substance more like a purchase and sale of the","page_number":316,"box":{"x":490,"y":346,"width":452,"height":13}},{"id":"2fc13c2b-b011-4d2a-8f1e-1fe55d526531","block_type":"box","text":"underlying security than is the case with repurchase agreements a","page_number":316,"box":{"x":46,"y":361,"width":451,"height":13}},{"id":"06d1dc5e-367f-4a0d-8e50-765013a9fa8a","block_type":"box","text":"nd, with purchase and sale contracts, the purchaser receives any","page_number":316,"box":{"x":498,"y":361,"width":442,"height":13}},{"id":"e69f4a6e-b768-48d3-bcd3-3ac1e973d9c2","block_type":"box","text":"interest on the security paid during the period of the contract.","page_number":316,"box":{"x":45,"y":377,"width":426,"height":13}},{"id":"4fe4c210-91e4-4d4f-a893-3c81554f552e","block_type":"box","text":"Repurchase agreements pose certain risks for a Fund that utilizes them. Such risks are not unique to the Fund but are inherent in","page_number":316,"box":{"x":46,"y":398,"width":889,"height":13}},{"id":"3b46915c-5e79-407f-a427-f6e0f221d1ed","block_type":"box","text":"repurchase agreements. The Funds seek to minimize such risks but because of the inherent legal uncertainties involved in","page_number":316,"box":{"x":45,"y":413,"width":835,"height":13}},{"id":"935aa40e-7e97-42b2-9f9f-e61cc6a48351","block_type":"box","text":"repurchase agreements, such risks cannot be eliminated. Lower","page_number":316,"box":{"x":45,"y":429,"width":437,"height":13}},{"id":"b7ef680a-1be9-445f-8207-45f50bb30a0d","block_type":"box","text":"quality collateral and collateral with longer maturities may be","page_number":316,"box":{"x":487,"y":429,"width":428,"height":13}},{"id":"e4f48cce-5eeb-40ca-b2c2-100f5190a6d9","block_type":"box","text":"subject to greater price fluctuations than higher quality collateral and collateral with shorter maturities. If the repurchase","page_number":316,"box":{"x":46,"y":444,"width":835,"height":13}},{"id":"127f6898-3591-4bba-94a2-4f25da801223","block_type":"box","text":"agreement counterparty were to default, lower quality collateral m","page_number":316,"box":{"x":46,"y":460,"width":461,"height":12}},{"id":"a6f63fca-1e66-448e-8f7e-4a04656a006a","block_type":"box","text":"ay be more difficult to liquidate than higher quality collateral.","page_number":316,"box":{"x":508,"y":460,"width":427,"height":12}},{"id":"8d6bb482-8d19-48bb-a06f-e1eebd83d75b","block_type":"box","text":"Should the counterparty default and the amount of collateral not be","page_number":316,"box":{"x":46,"y":475,"width":470,"height":13}},{"id":"5574e02f-26ed-404a-a8a7-900e7c797806","block_type":"box","text":"sufficient to cover the counterparty’s repurchase obligation, a","page_number":316,"box":{"x":521,"y":475,"width":425,"height":13}},{"id":"d97d4707-01b5-4f48-bd97-31d71a3f9885","block_type":"box","text":"Fund would retain the status of an unsecured creditor of the counterparty (","page_number":316,"box":{"x":45,"y":490,"width":520,"height":13}},{"id":"fb0127d3-e2bd-47cb-b0dc-c68faecbeb31","block_type":"box","text":"i.e.","page_number":316,"box":{"x":567,"y":491,"width":18,"height":9}},{"id":"5e40acaf-0c37-4b31-867b-37e2f5bce74b","block_type":"box","text":", the position the Fund would normally be in if it","page_number":316,"box":{"x":587,"y":490,"width":339,"height":13}},{"id":"645e7c63-5ad4-4070-891f-75bfa92f3d4f","block_type":"box","text":"were to hold, pursuant to its investment policies, other unsecu","page_number":316,"box":{"x":45,"y":506,"width":430,"height":12}},{"id":"c0fe9a49-4dd2-4bd7-a308-a79d33c8016a","block_type":"box","text":"red debt securities of the defaulting counterparty) with respect to the","page_number":316,"box":{"x":476,"y":506,"width":475,"height":12}},{"id":"33a8f08e-ab40-4537-a0f2-f25c1488ad4d","block_type":"box","text":"amount of the shortfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal and income","page_number":316,"box":{"x":46,"y":521,"width":856,"height":13}},{"id":"25adfc22-5864-4bbe-a18d-996ecf8bac63","block_type":"box","text":"involved in the transaction.","page_number":316,"box":{"x":45,"y":536,"width":188,"height":10}},{"id":"e400855e-7bfb-4a62-a074-185c466114f4","block_type":"box","text":"Regulations adopted by global prudential regulators require cert","page_number":316,"box":{"x":46,"y":558,"width":445,"height":13}},{"id":"42673e0a-ee19-4ff7-b967-4ce8c3eb76ed","block_type":"box","text":"ain bank-regulated counterparties and certain of their affiliates to","page_number":316,"box":{"x":492,"y":558,"width":452,"height":13}},{"id":"cabf6964-5621-42b3-9c10-7fdadb0933b7","block_type":"box","text":"include in certain financial contracts, including many repurchase","page_number":316,"box":{"x":45,"y":573,"width":447,"height":13}},{"id":"cf21af07-3ad4-44f6-9642-71a785221b70","block_type":"box","text":"agreements and purchase and sale contracts, terms that delay or","page_number":316,"box":{"x":498,"y":573,"width":442,"height":13}},{"id":"874e03ae-8447-45d0-a33b-e0bf3bcd2c25","block_type":"box","text":"restrict the rights of counterparties, such as a Fund, to terminate suc","page_number":316,"box":{"x":45,"y":588,"width":472,"height":13}},{"id":"cd38b887-77a7-48e0-91eb-c7820d669b02","block_type":"box","text":"h agreements, take foreclosure action, exercise other default","page_number":316,"box":{"x":517,"y":588,"width":415,"height":13}},{"id":"6d0c19cc-526a-4942-869d-c2817547ae01","block_type":"box","text":"rights or restrict transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain types of","page_number":316,"box":{"x":45,"y":604,"width":874,"height":13}},{"id":"ca68bf4f-d338-4882-97ce-ffcb93e42e3f","block_type":"box","text":"resolution or insolvency proceedings. It is possible that these re","page_number":316,"box":{"x":45,"y":619,"width":436,"height":13}},{"id":"94dda5f4-5e26-4c2a-9d9d-cbfdef3b4576","block_type":"box","text":"quirements, as well as potential additional government regulation","page_number":316,"box":{"x":482,"y":619,"width":454,"height":13}},{"id":"9b05b9de-a66d-4087-b688-ac954b5e68ec","block_type":"box","text":"and other developments in the market, could adversely affect a F","page_number":316,"box":{"x":46,"y":635,"width":448,"height":12}},{"id":"cec24a8a-5590-4600-941e-ed3e173cfba7","block_type":"box","text":"und’s ability to terminate existing repurchase agreements and","page_number":316,"box":{"x":494,"y":635,"width":425,"height":12}},{"id":"b856ba4a-0560-4406-b78a-2f69ac4d3e4c","block_type":"box","text":"purchase and sale contracts or to realize amounts to be received under such agreements. The SEC has also finalized rules that will","page_number":316,"box":{"x":45,"y":650,"width":898,"height":13}},{"id":"b275ed92-1d72-4318-83ef-39330f307185","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including","page_number":316,"box":{"x":45,"y":665,"width":440,"height":13}},{"id":"5d9bd63a-01e6-4de0-b46c-b578e02c814b","block_type":"box","text":"repurchase agreements, to be centrally cleared. Compliance with","page_number":316,"box":{"x":490,"y":665,"width":446,"height":13}},{"id":"310c45c2-963e-43a6-8fa4-79f8416da0c2","block_type":"box","text":"these rules is expected to be required by the middle of 2027. Although the impact of these rules on the Funds is difficult to predict,","page_number":316,"box":{"x":45,"y":681,"width":903,"height":13}},{"id":"657fd10b-112d-4784-a963-4c8a3ba255db","block_type":"box","text":"they may reduce the availability or increase the costs of such transactions and may adversely affect a Fund’s performance.","page_number":316,"box":{"x":45,"y":696,"width":842,"height":13}},{"id":"981db802-c924-4aba-9b91-d04243e1bada","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":316,"box":{"x":45,"y":717,"width":228,"height":13}},{"id":"291c7ced-9642-481d-9535-381d6f1f9b8f","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties with whom it may","page_number":316,"box":{"x":279,"y":717,"width":657,"height":13}},{"id":"c55c9320-7e5f-432f-b0f1-8233a30b15af","block_type":"box","text":"enter into repurchase agreements. Under a reverse repurchase","page_number":316,"box":{"x":46,"y":733,"width":424,"height":13}},{"id":"74409299-97c2-43c5-953b-933fa38fceb7","block_type":"box","text":"agreement, a Fund sells securities to another party and agrees to","page_number":316,"box":{"x":476,"y":733,"width":442,"height":13}},{"id":"5d670be3-b1fa-41bb-8bdf-a9e4d8b516dd","block_type":"box","text":"repurchase them at a mutually agreed-upon date and price. Reverse","page_number":316,"box":{"x":45,"y":748,"width":468,"height":13}},{"id":"c6f4a490-d4ac-4858-9992-d69d9d9a5f2a","block_type":"box","text":"repurchase agreements involve the risk that (i) the market","page_number":316,"box":{"x":518,"y":748,"width":398,"height":13}},{"id":"021fb657-6222-4cd9-9d11-20b8b28c4535","block_type":"box","text":"value of the securities retained in lieu of sale by a Fund may decline below the price of the securities the Fund has sold but is","page_number":316,"box":{"x":45,"y":764,"width":859,"height":12}},{"id":"a53c7e53-2974-43fa-8ba7-024ba1a10d09","block_type":"box","text":"obligated to repurchase and (ii) the price of the securities sold may decline below the price at which the Fund is required to","page_number":316,"box":{"x":46,"y":779,"width":849,"height":13}},{"id":"7efa4f01-36f8-4148-bb8d-057518e4acdf","block_type":"box","text":"repurchase them. In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":316,"box":{"x":45,"y":794,"width":864,"height":13}},{"id":"d2075eda-1219-4107-aba8-39fba850b380","block_type":"box","text":"insolvent, such buyer or its trustee or receiver may receive an","page_number":316,"box":{"x":45,"y":810,"width":422,"height":12}},{"id":"8383eff9-c3c7-4600-b72e-c79b3d258f45","block_type":"box","text":"extension of time to determine whether to enforce a Fund’s","page_number":316,"box":{"x":472,"y":810,"width":409,"height":10}},{"id":"9203024d-f665-4b74-888e-d5eb17227344","block_type":"box","text":"obligations to repurchase the securities and the Fund’s use of the proceeds of the reverse repurchase agreement may effectively be","page_number":316,"box":{"x":46,"y":825,"width":893,"height":13}},{"id":"807fa652-eef0-4504-8a14-601c34e94df5","block_type":"box","text":"restricted pending such decision.","page_number":316,"box":{"x":45,"y":840,"width":224,"height":13}},{"id":"10d7527d-32f5-4e10-8cb6-1562b2e82e49","block_type":"box","text":"Additionally, regulations adopted by global prudential regulator","page_number":316,"box":{"x":45,"y":862,"width":446,"height":13}},{"id":"437f7e4d-bb4b-48a5-bd7f-2a5aa6298b4c","block_type":"box","text":"s require certain bank-regulated counterparties and certain of their","page_number":316,"box":{"x":492,"y":862,"width":460,"height":13}},{"id":"4c05979a-d634-44f4-8ea3-5b9eb5ada7e3","block_type":"box","text":"affiliates to include in certain financial contracts, including many reverse repurchase agreements, terms that delay or restrict the","page_number":316,"box":{"x":46,"y":877,"width":881,"height":13}},{"id":"9dde57f0-2361-4900-93ea-c58924bbce1b","block_type":"box","text":"II-12","page_number":316,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"9930db1a-face-4ed7-a337-cc0dcb1a0b7b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":316,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"32855d4d-62c1-439a-a832-45bc8059432f","block_type":"box","text":"rights of counterparties, such as a Fund, to terminate such agreemen","page_number":317,"box":{"x":45,"y":79,"width":473,"height":13}},{"id":"a921aa7b-4cd6-4f48-ac8f-75d0da66a2dd","block_type":"box","text":"ts, take foreclosure action, exercise other default rights or","page_number":317,"box":{"x":519,"y":79,"width":398,"height":13}},{"id":"5454f0f5-5b9b-4d40-9f3e-1fa01d21a45d","block_type":"box","text":"restrict transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or","page_number":317,"box":{"x":45,"y":94,"width":904,"height":13}},{"id":"17caeee9-7983-4190-870f-dd4369e36230","block_type":"box","text":"insolvency proceedings. It is possible that these requirements","page_number":317,"box":{"x":45,"y":110,"width":419,"height":13}},{"id":"286df836-7a84-45e3-9b12-f88b40656e77","block_type":"box","text":", as well as potential additional government regulation and other","page_number":317,"box":{"x":465,"y":110,"width":449,"height":13}},{"id":"d02315c9-993a-4b8f-8407-cf0f22e6e77b","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ab","page_number":317,"box":{"x":46,"y":125,"width":435,"height":13}},{"id":"b1f04a0e-9c6e-4d73-ab3e-2d3e5fbed2bb","block_type":"box","text":"ility to terminate existing reverse repurchase agreements or to","page_number":317,"box":{"x":482,"y":125,"width":426,"height":13}},{"id":"771533ab-9104-4625-bd5b-a09e33239407","block_type":"box","text":"realize amounts to be received under such agreements. The SEC has also finalized rules that will require certain transactions","page_number":317,"box":{"x":45,"y":141,"width":858,"height":13}},{"id":"b12cd2ee-81fe-42c1-9fb3-264ed3b7e025","block_type":"box","text":"involving U.S. Treasuries, including reverse repurchase agreements","page_number":317,"box":{"x":45,"y":156,"width":461,"height":13}},{"id":"ee3a28da-4fc3-4490-a855-33c4fb27fcb1","block_type":"box","text":", to be centrally cleared. Compliance with these rules is expected","page_number":317,"box":{"x":507,"y":156,"width":445,"height":13}},{"id":"3bc5ef80-244a-4ffa-887f-968c4bb30250","block_type":"box","text":"to be required by the middle of 2027. Although the impact of these rules on the Funds is difficult to predict, they may reduce the","page_number":317,"box":{"x":45,"y":172,"width":891,"height":13}},{"id":"079946de-ec9b-45d7-adc5-6d2a4c3bfb18","block_type":"box","text":"availability or increase the costs of such transactions and may adversely affect a Fund’s performance.","page_number":317,"box":{"x":46,"y":187,"width":697,"height":13}},{"id":"dbd61345-4673-4551-a58c-f5d3e010c1df","block_type":"box","text":"Rule 2a-7 Requirements.","page_number":317,"box":{"x":45,"y":211,"width":174,"height":12}},{"id":"90e7eee1-85ac-48b0-8abf-9011e315db30","block_type":"box","text":"Rule 2a-7 under the Investment Company Act sets forth portfolio maturity, liquidity, diversification and","page_number":317,"box":{"x":225,"y":211,"width":723,"height":12}},{"id":"105badba-195a-48f6-9a66-ff287d551942","block_type":"box","text":"quality requirements applicable to all money market funds.","page_number":317,"box":{"x":46,"y":226,"width":408,"height":13}},{"id":"561d128c-d7c1-43fa-8a06-67bc8c353e4e","block_type":"box","text":"Maturity.","page_number":317,"box":{"x":45,"y":250,"width":65,"height":12}},{"id":"4b3e4db4-c7ff-48bb-be07-261502d013ba","block_type":"box","text":"Each Fund is managed so that the dollar-weighted average maturity of all of its investments will be 60 days or less, and","page_number":317,"box":{"x":116,"y":249,"width":826,"height":13}},{"id":"4e61453f-e552-40a9-80b1-2748a112fa22","block_type":"box","text":"the dollar-weighted average life of all of its investments will be 120 days or less. In addition, the Funds will not acquire any","page_number":317,"box":{"x":45,"y":265,"width":854,"height":13}},{"id":"b498cbda-bcf7-4830-aaa0-1cba8b5e61ab","block_type":"box","text":"instrument with a remaining maturity of greater than 397 days. The “dollar-weighted average maturity” of a Fund is the average","page_number":317,"box":{"x":45,"y":280,"width":895,"height":13}},{"id":"202c6a81-4543-48eb-b051-262af83fbf6a","block_type":"box","text":"amount of time until the issuers of the debt securities in the F","page_number":317,"box":{"x":46,"y":296,"width":422,"height":10}},{"id":"e244f1ac-5ce5-4bea-8d5f-d3c8b86ef926","block_type":"box","text":"und’s portfolio must pay off the principal amount of the debt.","page_number":317,"box":{"x":469,"y":296,"width":428,"height":13}},{"id":"df3c8d02-d1ce-4700-b5e8-59f338ba7dcd","block_type":"box","text":"“Dollar-weighted” means the larger the dollar value of a debt security based on its market value in a Fund, the more weight it gets","page_number":317,"box":{"x":47,"y":311,"width":903,"height":13}},{"id":"44d08d5e-ca72-4684-a36c-ef0dfb399370","block_type":"box","text":"in calculating this average. To calculate the dollar-weighted","page_number":317,"box":{"x":45,"y":327,"width":412,"height":13}},{"id":"2240ad0d-a061-474b-9f79-59fe534ffd45","block_type":"box","text":"average maturity, the Fund may treat a variable or floating rate","page_number":317,"box":{"x":462,"y":327,"width":439,"height":13}},{"id":"f8a87ec3-ee01-48a9-b6e7-785a2bacb94b","block_type":"box","text":"security under certain circumstances as having a maturity equal t","page_number":317,"box":{"x":46,"y":342,"width":448,"height":13}},{"id":"46f677f1-cc54-4df0-a9d0-5fcd0a1a8b62","block_type":"box","text":"o the time remaining to the security’s next interest rate reset date","page_number":317,"box":{"x":495,"y":342,"width":448,"height":13}},{"id":"d9c1b820-5566-465e-b898-d08d42760cf4","block_type":"box","text":"or the period remaining until the principal amount can be recovered","page_number":317,"box":{"x":46,"y":358,"width":471,"height":13}},{"id":"743e5a67-091a-485e-9358-6cb64a5f1337","block_type":"box","text":"through demand rather than the security’s actual maturity.","page_number":317,"box":{"x":522,"y":358,"width":406,"height":13}},{"id":"c1ce8479-840c-4c6a-a8fa-f726ac8a326f","block_type":"box","text":"“Dollar-weighted average life” of a Fund’s portfolio is calcul","page_number":317,"box":{"x":47,"y":373,"width":419,"height":13}},{"id":"ec0a8670-4730-4b12-ab55-5ddad408fab2","block_type":"box","text":"ated without reference to the exceptions used in calculating the","page_number":317,"box":{"x":467,"y":373,"width":436,"height":13}},{"id":"8e03b5a3-c38b-4ecf-a3a1-6d4fc69e0a38","block_type":"box","text":"dollar-weighted average maturity for variable or floating rate securities regarding the use of interest rate reset dates.","page_number":317,"box":{"x":46,"y":389,"width":799,"height":13}},{"id":"640220f5-880d-4314-b62a-4f7c02622253","block_type":"box","text":"Liquidity.","page_number":317,"box":{"x":45,"y":412,"width":67,"height":13}},{"id":"88ef570d-9830-4b0b-9b7e-61aa7662a06a","block_type":"box","text":"Rule 2a-7 contains a “general liquidity requirement” that","page_number":317,"box":{"x":119,"y":412,"width":398,"height":13}},{"id":"92dff69f-d4e0-4b20-965d-738cebc05eb2","block_type":"box","text":"requires that each Fund hold securities that are sufficiently","page_number":317,"box":{"x":521,"y":412,"width":405,"height":13}},{"id":"1eab5337-9182-4e46-968d-c9d9a8c2bfad","block_type":"box","text":"liquid to meet reasonably foreseeable shareholder redemptions","page_number":317,"box":{"x":45,"y":428,"width":433,"height":12}},{"id":"6d84f50a-b1d7-4e5c-bf39-b0f076d90db4","block_type":"box","text":"in light of its obligations under section 22(e) of the Investment","page_number":317,"box":{"x":484,"y":428,"width":431,"height":12}},{"id":"2368803c-cef1-4696-b7e2-038c6a33b887","block_type":"box","text":"Company Act, and any commitments the Fund has made to sharehol","page_number":317,"box":{"x":46,"y":443,"width":478,"height":13}},{"id":"07fcf5ae-6939-467e-b2af-f24e3536b168","block_type":"box","text":"ders. To comply with this general liquidity requirement, each","page_number":317,"box":{"x":524,"y":443,"width":423,"height":13}},{"id":"4c8b19fd-a71f-4a4c-b3e3-db4d6e3183a8","block_type":"box","text":"Fund’s adviser or sub-adviser must consider factors that could affe","page_number":317,"box":{"x":45,"y":459,"width":454,"height":10}},{"id":"553afd55-7ed1-4ac7-b84b-bc4f673a4bf3","block_type":"box","text":"fect the Fund’s liquidity needs, including characteristics of the","page_number":317,"box":{"x":499,"y":459,"width":421,"height":12}},{"id":"bd291a2b-db11-4874-906a-bdaa1f2f1196","block_type":"box","text":"Fund’s investors and their likely redemptions. Depending","page_number":317,"box":{"x":45,"y":474,"width":396,"height":13}},{"id":"824c3dae-351d-4bd3-9c12-dd54230a80e9","block_type":"box","text":"upon the volatility of its cash flows (particularly shareholder","page_number":317,"box":{"x":446,"y":474,"width":419,"height":13}},{"id":"eecbd9fe-24d2-4a17-8102-1160ebaf0505","block_type":"box","text":"redemptions), this provision may require a Fund to maintain g","page_number":317,"box":{"x":45,"y":490,"width":433,"height":12}},{"id":"044cf8c4-dd4d-4448-bdfb-eaaf1e648084","block_type":"box","text":"reater liquidity than would be required by the daily and weekly","page_number":317,"box":{"x":478,"y":490,"width":439,"height":12}},{"id":"59c30c3f-3276-4295-b88f-ff6bc5f11717","block_type":"box","text":"minimum liquidity requirements discussed below. The Funds will","page_number":317,"box":{"x":45,"y":505,"width":453,"height":13}},{"id":"43ab3095-8a3e-4a08-928c-b4c885e4553a","block_type":"box","text":"not acquire any security other than daily liquid assets unless,","page_number":317,"box":{"x":503,"y":505,"width":419,"height":13}},{"id":"9e54430b-2364-4531-a197-34710a9f30e7","block_type":"box","text":"immediately following such purchase, at least 25% of its total assets would be invested in daily liquid assets. The Funds will not","page_number":317,"box":{"x":45,"y":521,"width":888,"height":12}},{"id":"07aa9015-3bc7-4de4-8048-1d281bb9584d","block_type":"box","text":"acquire any security other than weekly liquid assets unless, immediately following such purchase, at least 50% of its total assets","page_number":317,"box":{"x":46,"y":536,"width":884,"height":13}},{"id":"39f7a0b4-4485-4d92-bc6d-9f0fc2a2d332","block_type":"box","text":"would be invested in weekly liquid assets. “Daily Liquid Assets” in","page_number":317,"box":{"x":45,"y":552,"width":464,"height":12}},{"id":"9682cfcb-0500-4ac9-ba30-1db36ad808f4","block_type":"box","text":"clude (i) cash; (ii) direct obligations of the U.S. Government;","page_number":317,"box":{"x":509,"y":552,"width":417,"height":12}},{"id":"bd0adffb-8dd8-42b2-b4e2-15a3b2678f2e","block_type":"box","text":"(iii) securities that will mature, as determined without reference to the maturity shortening provisions of Rule 2a-7 regarding","page_number":317,"box":{"x":46,"y":567,"width":862,"height":13}},{"id":"40f42275-c2c7-44e6-8e59-69cc8e482318","block_type":"box","text":"interest rate readjustments, or are subject to a demand featu","page_number":317,"box":{"x":45,"y":583,"width":416,"height":12}},{"id":"d046c3c4-6f95-4c45-90bf-50c027055229","block_type":"box","text":"re that is exercisable and payable within one business day; and","page_number":317,"box":{"x":461,"y":583,"width":434,"height":12}},{"id":"453c102c-7bdf-4688-8984-3ec5f1b4ec24","block_type":"box","text":"(iv) amounts receivable and due unconditionally within one business day on pending sales of portfolio securities. “Weekly Liquid","page_number":317,"box":{"x":46,"y":598,"width":894,"height":13}},{"id":"26dd9709-acbd-4583-89de-75636781a8a0","block_type":"box","text":"Assets” include (i) cash; (ii) direct obligations of the U.S. G","page_number":317,"box":{"x":45,"y":614,"width":408,"height":12}},{"id":"8dbf1730-b3c2-4f39-ae9a-b83474f1cfc0","block_type":"box","text":"overnment; (iii) U.S. Government securities issued by a person","page_number":317,"box":{"x":454,"y":614,"width":430,"height":12}},{"id":"b073f59b-d78c-4c46-ae6f-395318f55ef6","block_type":"box","text":"controlled or supervised by and acting as an instrumentality of the U.S. Government pursuant to authority granted by the U.S.","page_number":317,"box":{"x":45,"y":629,"width":875,"height":13}},{"id":"cd31b33b-7d6c-4094-a505-57e32098da56","block_type":"box","text":"Congress, that are issued at a discount to the principal amount to be repaid at maturity without provision for the payment of","page_number":317,"box":{"x":46,"y":645,"width":867,"height":12}},{"id":"5cfe86b4-4ff4-4359-9d11-dcdd2b0ffaa8","block_type":"box","text":"interest and have a remaining maturity of 60 days or less; (iv)","page_number":317,"box":{"x":45,"y":660,"width":425,"height":13}},{"id":"6b62cf4a-f534-4abb-90c6-d800f17fb50f","block_type":"box","text":"securities that will mature, as determined without reference to the","page_number":317,"box":{"x":476,"y":660,"width":454,"height":12}},{"id":"7d2679fc-2f45-4c66-8d02-914357077ed3","block_type":"box","text":"maturity shortening provisions of Rule 2a-7 regarding interest rate readjustments, or are subject to a demand feature that is","page_number":317,"box":{"x":45,"y":676,"width":856,"height":12}},{"id":"b9ceb714-1cd8-4604-874f-31d2b819c80c","block_type":"box","text":"exercisable and payable within five business days; and (v) am","page_number":317,"box":{"x":46,"y":691,"width":423,"height":13}},{"id":"96a786eb-d886-4fc8-b115-9fd7a38e2b9b","block_type":"box","text":"ounts receivable and due unconditionally within five business days on","page_number":317,"box":{"x":470,"y":691,"width":483,"height":13}},{"id":"b983c56b-b373-40f8-8e7d-54cf557af623","block_type":"box","text":"pending sales of portfolio securities. No Fund will invest more than 5% of the value of its total assets in securities that are illiquid","page_number":317,"box":{"x":45,"y":707,"width":898,"height":12}},{"id":"94a8d4df-5fa0-4626-b39b-93061dc131eb","block_type":"box","text":"(","page_number":317,"box":{"x":46,"y":723,"width":3,"height":12}},{"id":"816720c0-8b23-4f93-a0cd-36c9778293b7","block_type":"box","text":"i.e.","page_number":317,"box":{"x":51,"y":723,"width":18,"height":9}},{"id":"d78398cc-a6f9-4aae-a7c1-0298f3e3a943","block_type":"box","text":", securities that cannot be sold or disposed of in the ordinary course of business within seven days at approximately the value","page_number":317,"box":{"x":71,"y":722,"width":866,"height":13}},{"id":"0eb9fb7c-c197-43e8-aac2-8cc2e7adfdeb","block_type":"box","text":"ascribed to them by the Fund).","page_number":317,"box":{"x":46,"y":738,"width":211,"height":12}},{"id":"16bf4aa0-246c-4cb6-a6a1-9b83175c9b11","block_type":"box","text":"Portfolio Diversification and Quality.","page_number":317,"box":{"x":45,"y":761,"width":261,"height":13}},{"id":"6219663e-03f5-4788-b6f5-c679ac629aba","block_type":"box","text":"Immediately after the acquisition of any security, taxable money market funds must not","page_number":317,"box":{"x":313,"y":761,"width":608,"height":13}},{"id":"370d3aab-f900-47df-81f5-ecb043872ab2","block_type":"box","text":"have invested more than: Five percent of its total assets in securitie","page_number":317,"box":{"x":45,"y":776,"width":460,"height":13}},{"id":"665f65e7-5f24-437f-9249-dce412e4d286","block_type":"box","text":"s issued by the issuer of the security, provided, however, such a","page_number":317,"box":{"x":506,"y":776,"width":436,"height":13}},{"id":"d8a98ce9-e165-44fe-9a85-d91e6d3554bd","block_type":"box","text":"fund may invest up to twenty-five percent of its total assets in the securities of a single issuer for a period of up to three business","page_number":317,"box":{"x":45,"y":792,"width":885,"height":13}},{"id":"50719297-5238-4ac1-abf3-56431482840c","block_type":"box","text":"days after the acquisition thereof; provided, further, that th","page_number":317,"box":{"x":46,"y":807,"width":409,"height":13}},{"id":"2ea6b38f-fb21-414e-90b8-d949fb7bdea3","block_type":"box","text":"e fund may not invest in the securities of more than one issuer in","page_number":317,"box":{"x":456,"y":807,"width":446,"height":13}},{"id":"84ee15ac-7260-40a2-9951-b5ac85bcd6de","block_type":"box","text":"accordance with the foregoing proviso at any time; and ten percen","page_number":317,"box":{"x":46,"y":823,"width":458,"height":13}},{"id":"b5c866ed-225e-4f7e-8b52-4f1bc82999a6","block_type":"box","text":"t of its total assets in securities issued by or subject to demand","page_number":317,"box":{"x":505,"y":823,"width":428,"height":13}},{"id":"e8301a16-5c49-48ba-8ce4-783961bb577a","block_type":"box","text":"features or guarantees from the institution that issued the demand feature or guarantee.","page_number":317,"box":{"x":45,"y":838,"width":605,"height":13}},{"id":"4df9a17d-925c-4ca7-9f5b-01048010f77d","block_type":"box","text":"Government Money Market Funds.","page_number":317,"box":{"x":46,"y":862,"width":246,"height":13}},{"id":"844bfbc1-fca8-45e3-a4ca-391031e231e7","block_type":"box","text":"A government money market fund invests at least 99.5% of its total assets in obligations of","page_number":317,"box":{"x":298,"y":862,"width":634,"height":13}},{"id":"7604f758-e4fc-4d1c-8f34-2c3146ef2ef9","block_type":"box","text":"the U.S. Government, including obligations of the U.S. Treasury and federal agencies and instrumentalities, as well as repurchase","page_number":317,"box":{"x":45,"y":877,"width":892,"height":13}},{"id":"0f9dc8c4-8406-46f5-bdf6-e3659c6aee5a","block_type":"box","text":"II-13","page_number":317,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"5f638bec-0ecb-4c2f-9127-24bcbbd5f691","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":317,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4418a37c-9774-4a3f-b2ae-78b826c8cc53","block_type":"box","text":"agreements collateralized by government securities. Under Rule 2a-7, a government money market fund may, but is not required","page_number":318,"box":{"x":46,"y":79,"width":891,"height":13}},{"id":"72bf664a-9781-43c5-98e2-781d23e23477","block_type":"box","text":"to, impose discretionary liquidity fees. The Board of Trustees has determined that each Fund that is a government money market","page_number":318,"box":{"x":45,"y":94,"width":893,"height":13}},{"id":"3e178195-3b5a-405e-a954-bf5af29930ac","block_type":"box","text":"fund will not be subject to discretionary liquidity fees under Rule 2a-7.","page_number":318,"box":{"x":45,"y":110,"width":490,"height":13}},{"id":"e0aca619-50a5-432a-aeee-4d9303fca961","block_type":"box","text":"Retail Money Market Funds.","page_number":318,"box":{"x":45,"y":133,"width":200,"height":13}},{"id":"4514c2e8-f659-466c-88e1-933e1d9c1a5f","block_type":"box","text":"A retail money market fund is a money market fund that has policies and procedures reasonably","page_number":318,"box":{"x":251,"y":133,"width":668,"height":13}},{"id":"98cbd665-c839-448c-8eae-838ce562782a","block_type":"box","text":"designed to limit all beneficial owners of the fund to natural persons. Under Rule 2a-7, a retail money market fund is subject to the","page_number":318,"box":{"x":46,"y":149,"width":907,"height":12}},{"id":"816529fa-208f-4ba8-9ef3-e427ba570253","block_type":"box","text":"discretionary liquidity fees provisions; however, a retail mone","page_number":318,"box":{"x":46,"y":164,"width":425,"height":13}},{"id":"e8aa0b5a-aec1-474a-8035-577a1b14a9c9","block_type":"box","text":"y market fund is permitted to use the amortized cost method of","page_number":318,"box":{"x":472,"y":164,"width":439,"height":13}},{"id":"d9bffe36-0fdf-4cc9-a087-e4a2ac17e600","block_type":"box","text":"accounting or the penny rounding method, allowing a retail money market fund to maintain a stable NAV.","page_number":318,"box":{"x":46,"y":180,"width":743,"height":12}},{"id":"82dc287c-dfa5-410d-bc57-9c92d3ba5cdd","block_type":"box","text":"Securities Lending.","page_number":318,"box":{"x":46,"y":203,"width":132,"height":13}},{"id":"a6290bef-1b04-4744-90e3-5401b9a004fe","block_type":"box","text":"Each Fund may lend portfolio securities to certain borro","page_number":318,"box":{"x":184,"y":203,"width":390,"height":13}},{"id":"0ba3a8e4-22c7-48a6-acb1-54c5ebc4f738","block_type":"box","text":"wers that BlackRock determines to be creditworthy,","page_number":318,"box":{"x":575,"y":203,"width":360,"height":13}},{"id":"1e726069-de5e-4a0b-8220-61b11f238811","block_type":"box","text":"including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in an amount at least equal to","page_number":318,"box":{"x":45,"y":218,"width":901,"height":13}},{"id":"db828f6c-dc1f-41a9-a1f6-963cd28a6ac5","block_type":"box","text":"the current market value of the securities loaned. No securities loan shall be made on behalf of a Fund if, as a result, the aggregate","page_number":318,"box":{"x":45,"y":234,"width":901,"height":13}},{"id":"afa53efb-fd54-4920-b3bf-c6eb0388f87b","block_type":"box","text":"value of all securities loans of the particular Fund exceeds one-thir","page_number":318,"box":{"x":45,"y":249,"width":459,"height":13}},{"id":"e349329a-cd74-405d-b021-45b163ab3807","block_type":"box","text":"d of the value of such Fund’s total assets (including the value of","page_number":318,"box":{"x":505,"y":249,"width":440,"height":13}},{"id":"3f40de39-05e9-4954-9d53-adfd1d2b1f00","block_type":"box","text":"the collateral received). A Fund may terminate a loan at any time and obtain the return of the securities loaned. Each Fund","page_number":318,"box":{"x":45,"y":265,"width":850,"height":13}},{"id":"09c7254d-3320-474f-b066-2ff0ea5cca5a","block_type":"box","text":"receives, by way of substitute payment, the value of any interest or cash or non-cash distributions paid on the loaned securities","page_number":318,"box":{"x":45,"y":280,"width":876,"height":13}},{"id":"a4eed95a-5f6b-42db-b73c-b7777f584d21","block_type":"box","text":"that it would have otherwise received if the securities were not on loan.","page_number":318,"box":{"x":45,"y":296,"width":493,"height":10}},{"id":"85561c0e-3226-46c6-8280-6f5babf27a2f","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 amount of cash","page_number":318,"box":{"x":45,"y":319,"width":880,"height":13}},{"id":"2654492a-bddc-416f-98dd-90f5994eb146","block_type":"box","text":"collateral. The Funds are compensated by any positive difference between the amount earned on the reinvestment of cash","page_number":318,"box":{"x":45,"y":335,"width":841,"height":12}},{"id":"f3b762b3-a005-487d-97e8-931c9ffd2913","block_type":"box","text":"collateral and the fee paid to the borrower. In the case of colla","page_number":318,"box":{"x":45,"y":350,"width":431,"height":13}},{"id":"77ef44dc-1c83-40c0-bb01-3d67245bfbf7","block_type":"box","text":"teral other than cash, a Fund is compensated by a fee paid by the","page_number":318,"box":{"x":477,"y":350,"width":450,"height":13}},{"id":"98c827a3-b2c4-461b-815b-8045ff71ed1d","block_type":"box","text":"borrower equal to a percentage of the market value of the loaned securities. Any cash collateral received by the Fund for such","page_number":318,"box":{"x":46,"y":366,"width":869,"height":12}},{"id":"919ac643-54d9-44df-83f5-91f53aa48fd0","block_type":"box","text":"loans, and uninvested cash, may be reinvested in certain short-term instruments either directly on behalf of the Fund or through","page_number":318,"box":{"x":45,"y":381,"width":885,"height":13}},{"id":"d3acd0f5-de8f-4f8f-ac5d-51c2c880f0d1","block_type":"box","text":"one or more joint accounts or money market funds, including thos","page_number":318,"box":{"x":46,"y":397,"width":460,"height":12}},{"id":"e24ca4a4-fa7e-4676-bad0-96e637f5d6e2","block_type":"box","text":"e affiliated with BlackRock; such investments are subject to","page_number":318,"box":{"x":507,"y":397,"width":411,"height":12}},{"id":"283b9ecc-32aa-4350-864b-13e5e69ec2d7","block_type":"box","text":"investment risk.","page_number":318,"box":{"x":45,"y":412,"width":109,"height":10}},{"id":"90ed78d7-bb6a-47b4-9f2f-a4a4d1cfb8ef","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (i.e., the risk of losses resulting from problems in","page_number":318,"box":{"x":46,"y":435,"width":884,"height":13}},{"id":"317b06bb-c293-45e8-ae45-90ef00a46de7","block_type":"box","text":"the settlement and accounting process), “gap” risk (i.e., the risk of a","page_number":318,"box":{"x":45,"y":451,"width":471,"height":13}},{"id":"2efbf6d4-99c9-40d3-8486-e95f4a4a2931","block_type":"box","text":"mismatch between the return on cash collateral reinvestments","page_number":318,"box":{"x":522,"y":451,"width":426,"height":10}},{"id":"51c556c2-6b4a-48fd-a52d-de6d916e3d1d","block_type":"box","text":"and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":318,"box":{"x":46,"y":466,"width":537,"height":13}},{"id":"28d89645-3a28-4439-a22e-366a2558d4dc","block_type":"box","text":"i.e","page_number":318,"box":{"x":585,"y":467,"width":15,"height":9}},{"id":"c7377002-6440-4ce8-b19f-f4d98b37bd8b","block_type":"box","text":"., the risk of a shortfall at default when a cash","page_number":318,"box":{"x":601,"y":466,"width":317,"height":13}},{"id":"3c386f4a-7189-4114-a244-baa0db1401d7","block_type":"box","text":"collateral investment is denominated in a currency other than the currency of the assets being loaned due to movements in foreign","page_number":318,"box":{"x":45,"y":482,"width":900,"height":13}},{"id":"57d32157-2aeb-4f70-b8dd-b5cb3767c57d","block_type":"box","text":"exchange rates), and credit, legal, counterparty and market risks (in","page_number":318,"box":{"x":46,"y":497,"width":468,"height":13}},{"id":"963d2af9-8580-486f-ba1c-f527169d08e5","block_type":"box","text":"cluding the risk that market events, including but not limited to","page_number":318,"box":{"x":514,"y":497,"width":439,"height":13}},{"id":"50977ada-ae03-45b7-bdab-fcdd7793bf56","block_type":"box","text":"corporate actions, could lead a Fund to lend securities that are trading at a premium due to increased demand, or to recall loaned","page_number":318,"box":{"x":45,"y":513,"width":897,"height":13}},{"id":"e16dc0d4-c642-4b43-89b8-55d7b09ff5d5","block_type":"box","text":"securities or to lend less or none at all, which could lead to reduced securities lending revenue). If a Fund were to lend out","page_number":318,"box":{"x":46,"y":528,"width":841,"height":13}},{"id":"b237beb4-e6b4-4a28-ac29-87164003d6f3","block_type":"box","text":"securities that are subject to a corporate action and commit to the borrower a particular election as determined by the Fund’s","page_number":318,"box":{"x":46,"y":544,"width":867,"height":13}},{"id":"70ab11ad-e0a2-4bef-877f-e3a2b7f21df9","block_type":"box","text":"investment adviser, the benefit the Fund would receive in respect of committing to such election may or may not be less than the","page_number":318,"box":{"x":45,"y":559,"width":889,"height":13}},{"id":"570cce04-5f8f-44d6-a54f-e4c636f0b6c0","block_type":"box","text":"benefit the Fund would have received from making a different election in such corporate action. If a securities lending","page_number":318,"box":{"x":46,"y":575,"width":814,"height":13}},{"id":"69193cdf-27f7-4b56-a107-25ff7ecc49d7","block_type":"box","text":"counterparty were to default, a Fund would be subject to the risk of a possible delay in receiving collateral or in recovering the","page_number":318,"box":{"x":45,"y":590,"width":876,"height":13}},{"id":"6c3bfdcc-9b29-4eb4-9494-fbb990a7da13","block_type":"box","text":"loaned securities, or to a possible loss of rights in the collateral. In the event a borrower does not return a Fund’s securities as","page_number":318,"box":{"x":45,"y":606,"width":866,"height":13}},{"id":"c694f0fe-49f1-4ea3-b4a7-789e974b2b0e","block_type":"box","text":"agreed, the Fund’s ability to participate in a corporate action event may be impacted, or the Fund may experience losses if the","page_number":318,"box":{"x":46,"y":621,"width":870,"height":13}},{"id":"2c6b1605-a8fa-43bc-9af1-8804112352eb","block_type":"box","text":"proceeds received from liquidating the collateral do not at least equal the value of the loaned security at the time the collateral is","page_number":318,"box":{"x":45,"y":637,"width":887,"height":13}},{"id":"5ae6e923-ccb7-4baf-9b40-319900113a43","block_type":"box","text":"liquidated, plus the transaction costs incurred in purchasing rep","page_number":318,"box":{"x":45,"y":652,"width":441,"height":13}},{"id":"5dc3db54-7ec7-41cf-a55d-039461389912","block_type":"box","text":"lacement securities. This latter event could trigger adverse tax","page_number":318,"box":{"x":486,"y":652,"width":426,"height":13}},{"id":"37ed1fd2-4ea3-49df-a67e-6bfbc300fcf7","block_type":"box","text":"consequences for a Fund. A Fund could lose money if its short-term investment of the collateral declines in value over the period of","page_number":318,"box":{"x":45,"y":668,"width":909,"height":13}},{"id":"a409d5b1-6c58-47d4-9f9b-7c5bcb4ca933","block_type":"box","text":"the loan. Substitute payments received by a Fund representing dividends paid on securities loaned out by the Fund will not be","page_number":318,"box":{"x":45,"y":683,"width":869,"height":13}},{"id":"1f49c80f-a8df-450a-9cdc-400a1deec8de","block_type":"box","text":"considered qualified dividend income, and distributions by","page_number":318,"box":{"x":45,"y":699,"width":407,"height":13}},{"id":"70ce54cb-d378-4460-b8a3-ef3bce48fb75","block_type":"box","text":"the Fund of such substitute payments will not constitute qualified","page_number":318,"box":{"x":456,"y":699,"width":454,"height":13}},{"id":"8fd675dc-2a04-4654-bca9-de2f118afd53","block_type":"box","text":"dividend income. Additionally, substitute payments receive","page_number":318,"box":{"x":46,"y":714,"width":407,"height":13}},{"id":"3fa7da83-b134-42ef-b312-0fdc9306b54b","block_type":"box","text":"d by a Fund representing qualified REIT dividends paid on REIT","page_number":318,"box":{"x":454,"y":714,"width":449,"height":13}},{"id":"25a2252b-0f66-4d8c-a2ed-a737501a3e69","block_type":"box","text":"securities loaned out by the Fund will not be considered qualified REIT dividends, and distributions by the Fund of such substitute","page_number":318,"box":{"x":46,"y":730,"width":904,"height":13}},{"id":"52ee3bc2-c2f8-4fcd-bcef-a83b98488d92","block_type":"box","text":"payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends paid to non-corporate","page_number":318,"box":{"x":45,"y":745,"width":840,"height":13}},{"id":"06aaf2cb-4972-4518-987d-75b656726ef0","block_type":"box","text":"shareholders provided certain other requirements are satisfied. The securities lending agent will take into account the tax effects on","page_number":318,"box":{"x":46,"y":761,"width":906,"height":13}},{"id":"d5ca57fd-fe8d-4160-8d85-5b0b77acda3f","block_type":"box","text":"shareholders caused by these differences in connection with a Fund’","page_number":318,"box":{"x":46,"y":776,"width":467,"height":13}},{"id":"2a85a1f3-f7ac-4d6d-93d1-8786aa688788","block_type":"box","text":"s securities lending program. Substitute payments received on","page_number":318,"box":{"x":515,"y":776,"width":425,"height":13}},{"id":"b2774655-d3f3-4641-bcbc-1f9f30eab5d1","block_type":"box","text":"tax-exempt securities loaned out will not be tax-exempt income. There could also be changes in the status of issuers under","page_number":318,"box":{"x":45,"y":792,"width":847,"height":13}},{"id":"aa60e81a-c4cf-4038-9632-fd949ec36a4d","block_type":"box","text":"applicable laws and regulations, including tax regulations, that may impact the regulatory or tax treatment of loaned securities","page_number":318,"box":{"x":46,"y":807,"width":877,"height":13}},{"id":"5540af9a-6160-4e63-acee-b5632f99ef4b","block_type":"box","text":"and could, for example, result in a delay in the payment of d","page_number":318,"box":{"x":46,"y":823,"width":419,"height":13}},{"id":"1a7fa9d7-5385-4d8c-b25a-f1e63fc6a5fc","block_type":"box","text":"ividend equivalent payments owed to a Fund (as permitted by","page_number":318,"box":{"x":465,"y":823,"width":429,"height":13}},{"id":"bc96a435-fd74-4b8d-ba91-5dec6014cbf9","block_type":"box","text":"applicable law).","page_number":318,"box":{"x":46,"y":838,"width":108,"height":13}},{"id":"c829571a-8aa3-4c93-9968-5217e7860cbd","block_type":"box","text":"Regulations adopted by global prudential regulators require cert","page_number":318,"box":{"x":46,"y":862,"width":445,"height":13}},{"id":"bce35bb0-0f65-49a3-83e3-70be2baaaeb9","block_type":"box","text":"ain bank-regulated counterparties and certain of their affiliates to","page_number":318,"box":{"x":492,"y":862,"width":452,"height":13}},{"id":"df6f8da0-cb51-49d5-b796-daece3f5f36a","block_type":"box","text":"include in certain financial contracts, including many securitie","page_number":318,"box":{"x":45,"y":877,"width":429,"height":13}},{"id":"85211dd8-3985-40f8-8da5-c2c5c2a9956a","block_type":"box","text":"s lending agreements, terms that delay or restrict the rights of","page_number":318,"box":{"x":475,"y":877,"width":424,"height":13}},{"id":"1f8a2017-c479-4a40-809d-69d3a3c0c7b3","block_type":"box","text":"II-14","page_number":318,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"672cb467-c14f-4d5c-b155-8dffd2452459","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":318,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c8da0d03-2338-4491-81c8-32725e76bc53","block_type":"box","text":"counterparties, such as the Fund, to terminate such agreements, fo","page_number":319,"box":{"x":45,"y":79,"width":459,"height":13}},{"id":"bfbe06b0-4da9-4c2d-b09c-8224df9c24c0","block_type":"box","text":"reclose upon collateral, exercise other default rights or restrict","page_number":319,"box":{"x":505,"y":79,"width":428,"height":13}},{"id":"1fe28ee1-52df-4bcc-b0cc-333b32b27a5f","block_type":"box","text":"transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or","page_number":319,"box":{"x":45,"y":94,"width":851,"height":13}},{"id":"f953921b-8a98-42db-be93-d621fddb2920","block_type":"box","text":"insolvency proceedings. It is possible that these requirements","page_number":319,"box":{"x":45,"y":110,"width":419,"height":13}},{"id":"80c66bb1-e81d-4b90-9300-d3812a301f93","block_type":"box","text":", as well as potential additional government regulation and other","page_number":319,"box":{"x":465,"y":110,"width":449,"height":13}},{"id":"9da20a96-268d-4974-bcb5-1da85309dbe1","block_type":"box","text":"developments in the market, could adversely affect the Fund’s ab","page_number":319,"box":{"x":46,"y":125,"width":448,"height":13}},{"id":"d9099de3-498c-4cca-a685-1b41c6c1ebb9","block_type":"box","text":"ility to terminate existing securities lending agreements or to","page_number":319,"box":{"x":495,"y":125,"width":417,"height":13}},{"id":"a73f25a7-cea7-433f-a51e-7b3f0ef681b0","block_type":"box","text":"realize amounts to be received under such agreements. Prudential regulation may also favor lenders that can provide additional","page_number":319,"box":{"x":45,"y":141,"width":881,"height":13}},{"id":"0acaf9d3-dd61-4924-9e55-640479fa9ba6","block_type":"box","text":"protections, such as liens that are exercisable in connection with a lender default, to borrowers. Certain Funds expect to provide","page_number":319,"box":{"x":45,"y":156,"width":888,"height":13}},{"id":"e6b228b3-2d90-4d47-bcc7-e3748f271082","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a","page_number":319,"box":{"x":46,"y":172,"width":466,"height":13}},{"id":"5f8cc8e4-f3ac-4b78-ad9c-95455ad5ade7","block_type":"box","text":"Fund’s investment policies and if BlackRock believes doing so","page_number":319,"box":{"x":518,"y":172,"width":427,"height":13}},{"id":"dea5e25a-7fe2-472b-866a-553f1a7fe31c","block_type":"box","text":"is in the best interest of the Fund.","page_number":319,"box":{"x":45,"y":187,"width":230,"height":10}},{"id":"5d2d6482-7326-4baf-a909-35967856d338","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction information (not","page_number":319,"box":{"x":45,"y":211,"width":853,"height":12}},{"id":"783685db-3b30-45f1-8056-85f8e598131c","block_type":"box","text":"including party names); this may include, but is not limited to, in","page_number":319,"box":{"x":45,"y":226,"width":450,"height":13}},{"id":"fe2290ec-02ec-4e43-b9a8-5b560f614456","block_type":"box","text":"formation about securities loans entered into in connection with","page_number":319,"box":{"x":495,"y":226,"width":445,"height":10}},{"id":"e1aff974-0fb0-4ba6-9d2f-c375ab4d58f8","block_type":"box","text":"short sales. Compliance with this rule is expected to be required in late 2028, although in response to the outcome of a legal","page_number":319,"box":{"x":46,"y":242,"width":859,"height":12}},{"id":"aff22098-0cb3-4032-a743-4857e0aac67c","block_type":"box","text":"challenge against the rule, the SEC may amend the rule and/or delay the current expected compliance date.","page_number":319,"box":{"x":45,"y":257,"width":739,"height":13}},{"id":"abf94f96-5a32-4bf7-8341-fd2440df13d6","block_type":"box","text":"Structured Notes.","page_number":319,"box":{"x":46,"y":280,"width":121,"height":10}},{"id":"c9574cd3-13e8-4187-b813-08a1055b60c0","block_type":"box","text":"Structured notes and other related instruments purch","page_number":319,"box":{"x":173,"y":280,"width":367,"height":13}},{"id":"b28ab722-add6-468b-9428-78be96996f5a","block_type":"box","text":"ased by a Fund are generally privately negotiated debt","page_number":319,"box":{"x":541,"y":280,"width":373,"height":13}},{"id":"0e41d318-7e2b-4e73-8ea4-5d871d96933d","block_type":"box","text":"obligations where the principal and/or interest is determined by","page_number":319,"box":{"x":46,"y":296,"width":439,"height":13}},{"id":"39a3637e-f772-4a4a-8e9d-f0aa22ce151e","block_type":"box","text":"reference to the performance of a specific asset, benchmark asset,","page_number":319,"box":{"x":489,"y":296,"width":451,"height":13}},{"id":"7256fdb2-9fea-4281-ad0d-c6ab69140f69","block_type":"box","text":"market or interest rate (“reference measure”). Issuers of structu","page_number":319,"box":{"x":45,"y":311,"width":439,"height":13}},{"id":"460d2780-2ff8-4f8e-993a-9eac84ad8ef2","block_type":"box","text":"red notes generally include corporations and banks. The interest","page_number":319,"box":{"x":484,"y":311,"width":445,"height":13}},{"id":"14062caa-854e-44d4-b65c-386361549c35","block_type":"box","text":"rate or the principal amount payable upon maturity or redemption may increase or decrease, depending upon changes in the value","page_number":319,"box":{"x":45,"y":327,"width":904,"height":13}},{"id":"bb1fe56f-4717-4081-a91d-f39c368b008d","block_type":"box","text":"of the reference measure. The terms of a structured note may provide that, in certain circumstances, no principal is due at maturity","page_number":319,"box":{"x":46,"y":342,"width":905,"height":13}},{"id":"e2718694-566c-432d-9159-b9d5e2994d05","block_type":"box","text":"and, therefore, may result in a loss of invested capital by a Fund. The interest and/or principal payments that may be made on a","page_number":319,"box":{"x":46,"y":358,"width":884,"height":13}},{"id":"b12e83cb-0196-47c5-b672-8e59f0d3f5df","block_type":"box","text":"structured product may vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":319,"box":{"x":46,"y":373,"width":827,"height":13}},{"id":"1d719fa4-6bc3-4d37-b2bd-d5eeee616690","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may produce an increase or","page_number":319,"box":{"x":46,"y":397,"width":901,"height":12}},{"id":"4daf6397-ef02-4b38-bc37-c97c57e0268a","block_type":"box","text":"a decrease in the interest rate or the value of the principal at maturity. The rate of return on structured notes may be determined","page_number":319,"box":{"x":46,"y":412,"width":887,"height":13}},{"id":"e90ecec1-b701-4c61-905b-2daca8548b36","block_type":"box","text":"by applying a multiplier to the performance or differential performance of reference measures. Application of a multiplier involves","page_number":319,"box":{"x":46,"y":428,"width":901,"height":12}},{"id":"affdcf1b-ea99-47dd-b51f-6273791a2e55","block_type":"box","text":"leverage that will serve to magnify the potential for gain and the risk of loss.","page_number":319,"box":{"x":45,"y":443,"width":527,"height":13}},{"id":"00665fed-9eab-4093-834b-591abe4dd3ad","block_type":"box","text":"The purchase of structured notes exposes a Fund to the credit risk of the issuer of the structured product. Structured notes may","page_number":319,"box":{"x":45,"y":466,"width":881,"height":13}},{"id":"1e4e470f-f368-47da-8d93-936dbf0927a4","block_type":"box","text":"also be more volatile, less liquid, and more difficult to price accurately than less complex securities and instruments or more","page_number":319,"box":{"x":46,"y":482,"width":857,"height":13}},{"id":"ff7c7dba-fb08-420b-a1e8-588820adc2ba","block_type":"box","text":"traditional debt securities. The secondary market for structured notes could be illiquid making them difficult to sell when the Fund","page_number":319,"box":{"x":45,"y":497,"width":906,"height":13}},{"id":"6ad58952-d0c1-4409-a86d-60aaa281c36f","block_type":"box","text":"determines to sell them. The possible lack of a liquid secondary market for structured notes and the resulting inability of the Fund","page_number":319,"box":{"x":46,"y":513,"width":899,"height":13}},{"id":"c5257d4d-ead9-4521-b909-f7b1c034250b","block_type":"box","text":"to sell a structured note could expose the Fund to losses and could make structured notes more difficult for the Fund to value","page_number":319,"box":{"x":45,"y":528,"width":868,"height":13}},{"id":"837b056a-df9e-4dce-8ee3-d9b59e58ee56","block_type":"box","text":"accurately.","page_number":319,"box":{"x":46,"y":544,"width":73,"height":13}},{"id":"5e50a7d2-9dda-462e-b89a-5368305813d2","block_type":"box","text":"Taxable Money Market Securities.","page_number":319,"box":{"x":46,"y":567,"width":241,"height":13}},{"id":"0c3beb41-3c9a-44eb-adf4-d592900c2b35","block_type":"box","text":"Certain Funds may invest in a variety of taxable money market securities (“Taxable","page_number":319,"box":{"x":294,"y":567,"width":580,"height":13}},{"id":"8c3c3544-d879-43b4-b868-eff58fb4c304","block_type":"box","text":"Securities”). The Taxable Securities in which certain Funds may invest consist of U.S. Government securities, U.S. Government","page_number":319,"box":{"x":46,"y":583,"width":878,"height":12}},{"id":"78901bb3-c924-4e6e-ad4f-9adc86bdbef7","block_type":"box","text":"agency securities, domestic bank certificates of deposit and bankers’ acceptances, short term corporate debt securities such as","page_number":319,"box":{"x":46,"y":598,"width":865,"height":13}},{"id":"9ee87ec6-0978-4c51-993f-c1325f4699e2","block_type":"box","text":"commercial paper and repurchase agreements. These investments must have a maturity not in excess of 397 days from the date of","page_number":319,"box":{"x":45,"y":614,"width":901,"height":12}},{"id":"7572abb4-8dc5-4386-a5da-e9fe3bc6bd39","block_type":"box","text":"purchase.","page_number":319,"box":{"x":45,"y":629,"width":65,"height":13}},{"id":"af0368fb-1f11-4018-bbff-f22c04875987","block_type":"box","text":"The standards applicable to Taxable Securities in which certain Funds invest are essentially the same as those described above with","page_number":319,"box":{"x":45,"y":652,"width":907,"height":13}},{"id":"244adc8b-8978-4cdd-99e4-8f2322a61e90","block_type":"box","text":"respect to Municipal Securities. Certain Funds may not invest in","page_number":319,"box":{"x":45,"y":668,"width":444,"height":13}},{"id":"6d1f2469-119d-4de2-ab57-4bf8a2456360","block_type":"box","text":"any security issued by a depository institution unless such","page_number":319,"box":{"x":494,"y":668,"width":398,"height":13}},{"id":"72f1d18c-48b1-4869-91cd-20195925775e","block_type":"box","text":"institution is organized and operating in the United States, has t","page_number":319,"box":{"x":45,"y":683,"width":441,"height":13}},{"id":"07461850-bff9-4873-b89c-721f96344dad","block_type":"box","text":"otal assets of at least $1 billion and is federally insured. Taxable","page_number":319,"box":{"x":486,"y":683,"width":443,"height":13}},{"id":"68af8232-8a24-4b06-9c07-067e6f0e797b","block_type":"box","text":"Securities in which the Funds invest will be determined by the","page_number":319,"box":{"x":46,"y":699,"width":426,"height":13}},{"id":"e319ab55-e57e-4af3-b47f-2110c734eef1","block_type":"box","text":"Manager to present minimal credit risks to the Fund, if required,","page_number":319,"box":{"x":477,"y":699,"width":447,"height":13}},{"id":"106cfeb9-7623-451c-81f3-0ff3e09f93d3","block_type":"box","text":"and certain Funds may require that portfolio investments (or their issuers) receive minimum credit ratings from one or more","page_number":319,"box":{"x":46,"y":714,"width":858,"height":13}},{"id":"46c9473a-304a-4efd-95bf-47212c5b3882","block_type":"box","text":"NRSROs, or if not rated, are determined by the Manager to be of comparable quality to securities that have received such","page_number":319,"box":{"x":45,"y":730,"width":846,"height":13}},{"id":"defeba28-fb53-4ef0-b4e9-36a0d5f08684","block_type":"box","text":"rating(s).","page_number":319,"box":{"x":45,"y":746,"width":61,"height":12}},{"id":"d7f46d5d-8f18-45bd-bb36-5af1d8e7e830","block_type":"box","text":"U.S. Government Obligations.","page_number":319,"box":{"x":46,"y":769,"width":212,"height":13}},{"id":"1a01fc8a-4738-4674-95dd-233136670bf7","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government and U.S.","page_number":319,"box":{"x":264,"y":769,"width":616,"height":13}},{"id":"7723c9ac-d550-414d-976f-9a3173fac3b2","block_type":"box","text":"Government agencies and instrumentalities. Obligations of certai","page_number":319,"box":{"x":46,"y":784,"width":449,"height":13}},{"id":"da270e12-8a1a-428f-9134-325fd1a4299f","block_type":"box","text":"n agencies and instrumentalities of the U.S. Government are","page_number":319,"box":{"x":496,"y":784,"width":415,"height":13}},{"id":"13d4850e-c204-45f7-a612-d6f4907d03e9","block_type":"box","text":"supported by the full faith and credit of the U.S. Treasury. Others are supported by the right of the issuer to borrow from the U.S.","page_number":319,"box":{"x":46,"y":800,"width":899,"height":13}},{"id":"68c2d4ed-bd37-4c59-870f-53141e77f602","block_type":"box","text":"Treasury; and still others are supported only by the credit of the agency or instrumentality issuing the obligation. No assurance","page_number":319,"box":{"x":45,"y":815,"width":880,"height":13}},{"id":"ae9cbefb-ffdc-45eb-9ec6-102d7f3d3c9d","block_type":"box","text":"can be given that the U.S. Government will provide financial support to U.S. Government-sponsored instrumentalities if it is not","page_number":319,"box":{"x":45,"y":831,"width":888,"height":13}},{"id":"bbce7142-c647-45cf-af61-c38367205a64","block_type":"box","text":"obligated to do so by law. Certain U.S. Treasury and agency securities may be held by trusts that issue participation certificates","page_number":319,"box":{"x":46,"y":846,"width":879,"height":13}},{"id":"c667959e-a265-43cb-867b-10ffc67eb40d","block_type":"box","text":"(such as Treasury income growth receipts and certificates of accrual on Treasury certificates). These certificates, as well as","page_number":319,"box":{"x":46,"y":862,"width":843,"height":13}},{"id":"17962f61-2d38-40d7-a0c1-08dc697f721c","block_type":"box","text":"Treasury receipts and other stripped securities, represent benefic","page_number":319,"box":{"x":45,"y":877,"width":444,"height":13}},{"id":"c9eda86a-458d-45d7-bb73-c4179e397cdf","block_type":"box","text":"ial ownership interests in either fu","page_number":319,"box":{"x":490,"y":877,"width":235,"height":13}},{"id":"6febff4a-b1c7-454d-8531-81dc27659539","block_type":"box","text":"ture interest payments or the","page_number":319,"box":{"x":725,"y":877,"width":199,"height":13}},{"id":"1fff7cda-225e-4039-8dff-1b0f167e6793","block_type":"box","text":"II-15","page_number":319,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"fc5d7118-4775-4717-befb-35b3c1220878","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":319,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2cc3d851-af3f-4f69-bc52-747dd54ff530","block_type":"box","text":"future principal payments on U.S. Government obligations. Th","page_number":320,"box":{"x":45,"y":79,"width":436,"height":12}},{"id":"7f624a75-8d0c-41e5-aabd-b0357bda808c","block_type":"box","text":"ese instruments are issued at a discount to their “face value” and","page_number":320,"box":{"x":481,"y":79,"width":449,"height":10}},{"id":"bf6c5d58-37f8-4453-b01a-9793847b28d7","block_type":"box","text":"may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary debt securities","page_number":320,"box":{"x":45,"y":94,"width":885,"height":13}},{"id":"f6f794de-56ec-4a1d-a15d-4ba302da1eae","block_type":"box","text":"because of the manner in which their principal and interest are returned to investors.","page_number":320,"box":{"x":46,"y":109,"width":585,"height":13}},{"id":"e23de89d-420a-431d-ade5-346ea2e39d39","block_type":"box","text":"Examples of the types of U.S. Government obligations that may be held by certain Funds include U.S. Treasury Bills, Treasury","page_number":320,"box":{"x":45,"y":131,"width":875,"height":13}},{"id":"3473c1fd-dba0-4680-9c85-f3e488c13d72","block_type":"box","text":"Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home Administration, Export","page_number":320,"box":{"x":45,"y":147,"width":883,"height":12}},{"id":"e47d56a5-9685-4b85-9ed7-f84f5fbf515d","block_type":"box","text":"Import Bank of the United States, Small Business Administration, the Government National Mortgage Association (“Ginnie","page_number":320,"box":{"x":45,"y":162,"width":860,"height":13}},{"id":"c7e6b47f-dd8f-464c-9789-8f73c41c472c","block_type":"box","text":"Mae”), the Federal National Mortgage Association (“Fannie Mae","page_number":320,"box":{"x":45,"y":177,"width":457,"height":13}},{"id":"a986f24c-4a66-4e78-8fcb-08769e3ea2b4","block_type":"box","text":"”), Federal Financing Bank, General Services Administration,","page_number":320,"box":{"x":504,"y":177,"width":421,"height":13}},{"id":"9b39d4d8-178d-49d2-a8d2-459292513a31","block_type":"box","text":"The Co-operative Central Bank, Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation (“Freddie Mac”),","page_number":320,"box":{"x":45,"y":193,"width":876,"height":12}},{"id":"05bd0d64-1cd5-47c4-8371-e339b95413dc","block_type":"box","text":"Farm Credit System and Tennessee Valley Authority. Certain Funds may also invest in mortgage-related securities issued or","page_number":320,"box":{"x":45,"y":208,"width":855,"height":13}},{"id":"7006b99f-016f-4970-8a18-e1161cbedffb","block_type":"box","text":"guaranteed by U.S. Government agencies and instrumentaliti","page_number":320,"box":{"x":45,"y":223,"width":421,"height":13}},{"id":"159f3325-ed02-475a-bfe1-144bf77ef52a","block_type":"box","text":"es, including such obligations of Ginnie Mae, Fannie Mae and","page_number":320,"box":{"x":467,"y":223,"width":431,"height":13}},{"id":"062c7a79-1e66-42ed-b8a1-9f077e8f52c2","block_type":"box","text":"Freddie Mac.","page_number":320,"box":{"x":45,"y":239,"width":91,"height":10}},{"id":"7ee8c819-3a58-45af-b266-d9635d2ee279","block_type":"box","text":"To the extent consistent with their respective investment objectives, the Funds may invest in a variety of U.S. Treasury obligations","page_number":320,"box":{"x":45,"y":261,"width":899,"height":12}},{"id":"4adecab7-91e2-49f5-a30d-7d47c149fe62","block_type":"box","text":"and obligations issued by or guaranteed by the U.S. Government or its agencies, instrumentalities or U.S. Government sponsored","page_number":320,"box":{"x":46,"y":276,"width":892,"height":13}},{"id":"9f5eff5b-0703-4c78-9f13-9559ae3491b3","block_type":"box","text":"enterprises. Treasury obligations may differ in their interest rat","page_number":320,"box":{"x":46,"y":291,"width":434,"height":13}},{"id":"f24625da-6983-4fb9-ad38-6e096887665e","block_type":"box","text":"es, maturities, times of issuance and other characteristics.","page_number":320,"box":{"x":481,"y":291,"width":394,"height":13}},{"id":"4488eab1-8d0e-48c2-8d31-a30e0516f9a7","block_type":"box","text":"Obligations of U.S. Government agencies and authorities are supported by varying degrees of credit but generally are not backed","page_number":320,"box":{"x":46,"y":307,"width":892,"height":12}},{"id":"a7e43dea-df84-4274-8701-a74635096107","block_type":"box","text":"by the full faith and credit of the U.S. Government. No assurance can be given that the U.S. Government would provide financial","page_number":320,"box":{"x":46,"y":322,"width":895,"height":13}},{"id":"8d7e6d69-a962-4c56-ab7d-0bb7a727bc35","block_type":"box","text":"support to its agencies, instrumentalities or U.S. Government sponsored enterprises if it were not obligated to do so by law. There","page_number":320,"box":{"x":46,"y":337,"width":898,"height":13}},{"id":"b911209d-eb13-4c18-bc4e-38778da3cb98","block_type":"box","text":"is no assurance that these commitments will","page_number":320,"box":{"x":45,"y":353,"width":305,"height":10}},{"id":"2451c9dc-75f6-47da-b0c5-609287f0e06d","block_type":"box","text":"be undertaken or complied with in the future.","page_number":320,"box":{"x":355,"y":353,"width":316,"height":13}},{"id":"68e8e6d8-5a58-45ea-a133-8fb7c5f2e328","block_type":"box","text":"In addition, certain Funds may invest in U.S. Treasury Floating Rat","page_number":320,"box":{"x":45,"y":375,"width":466,"height":12}},{"id":"6f11e3f6-6ff7-4ac3-a8a6-e8da739aa4ef","block_type":"box","text":"e Notes (FRNs), which are two-year notes issued by the U.S.","page_number":320,"box":{"x":512,"y":375,"width":418,"height":12}},{"id":"a5f02f39-0d79-4380-b968-31151f4007bc","block_type":"box","text":"Treasury. The interest rate of an FRN changes over the life of the FRN and is the sum of an index rate and a spread. The index","page_number":320,"box":{"x":45,"y":390,"width":882,"height":13}},{"id":"c899091f-d76d-4c92-adbb-98900f6076d4","block_type":"box","text":"rate of an FRN is tied to the highest accepted discount rate of the most recent 13-week Treasury bill and is re-set every week. The","page_number":320,"box":{"x":45,"y":405,"width":898,"height":13}},{"id":"4d492cf1-3e45-4cb7-a528-fc541d681f73","block_type":"box","text":"spread is a rate applied to the index rate. The spread stays the same for the life of an FRN. The spread is determined at the auction","page_number":320,"box":{"x":46,"y":421,"width":905,"height":13}},{"id":"d462bdec-c67a-4156-8158-4a1a1d8fbf1b","block_type":"box","text":"where the FRN is first offered. The spread is the highest accepted di","page_number":320,"box":{"x":45,"y":436,"width":469,"height":13}},{"id":"d2772a84-9b59-4394-a9ea-879abd51fdfc","block_type":"box","text":"scount margin in that auction. See also “Variable and Floating","page_number":320,"box":{"x":515,"y":436,"width":433,"height":13}},{"id":"834d6fcb-9442-43f9-b95f-e45c6429a837","block_type":"box","text":"Rate Instruments” below.","page_number":320,"box":{"x":46,"y":451,"width":177,"height":11}},{"id":"96f701bc-f34d-488a-b18d-c39d312304d3","block_type":"box","text":"Variable and Floating Rate Instruments.","page_number":320,"box":{"x":45,"y":473,"width":284,"height":13}},{"id":"866ba730-138c-4616-a852-fbd6d31f7d68","block_type":"box","text":"Certain Funds may purchase variable and floating rate instruments. Variable and","page_number":320,"box":{"x":335,"y":473,"width":562,"height":13}},{"id":"c5554020-817e-44ba-8242-23d493214d2b","block_type":"box","text":"floating rate instruments are subject to the credit quality standards described in the Prospectus. In some cases, the Funds may","page_number":320,"box":{"x":45,"y":489,"width":867,"height":12}},{"id":"4b9971c0-994e-413e-ac9b-5d0d6f6910d3","block_type":"box","text":"require that the obligation to pay the principal of the instrumen","page_number":320,"box":{"x":45,"y":504,"width":441,"height":13}},{"id":"9f63a2bb-111f-4657-af3d-82a79266f335","block_type":"box","text":"t be backed by a letter of credit or guarantee. Such instruments","page_number":320,"box":{"x":486,"y":504,"width":435,"height":13}},{"id":"bbb316e1-7dc3-4ba1-987a-e65f6a60b4a3","block_type":"box","text":"may carry stated maturities in excess of 397 days provided that the maturity-shortening provisions stated in Rule 2a-7 are","page_number":320,"box":{"x":45,"y":519,"width":845,"height":13}},{"id":"49212ba9-dfdf-424c-90a0-97aa7f6ac887","block_type":"box","text":"satisfied. Although a particular variable or floating rate demand instrument may not be actively traded in a secondary market, in","page_number":320,"box":{"x":46,"y":535,"width":891,"height":13}},{"id":"5afda72e-e875-4fbd-8c27-9fdb29ebb172","block_type":"box","text":"some cases, a Fund may be entitled to principal on demand and may be able to resell such notes in the dealer market.","page_number":320,"box":{"x":46,"y":550,"width":810,"height":13}},{"id":"0d945bc7-d703-4806-82c1-b39e75dbda97","block_type":"box","text":"Variable and floating rate instruments held by a Fund generally","page_number":320,"box":{"x":45,"y":572,"width":440,"height":13}},{"id":"8fcf580f-5092-4072-90d1-0582b69fadf2","block_type":"box","text":"may have maturities of more than 397 days provided: (i) they are","page_number":320,"box":{"x":489,"y":572,"width":452,"height":13}},{"id":"4792f3a5-e851-461e-9f91-a9bb0f037ee1","block_type":"box","text":"subject to a demand feature entitling the Fund to the payment o","page_number":320,"box":{"x":46,"y":587,"width":441,"height":13}},{"id":"53b73451-19b5-4680-a60e-6c50a14b1f92","block_type":"box","text":"f principal and interest within 397 days of exercise, unless the","page_number":320,"box":{"x":488,"y":587,"width":426,"height":13}},{"id":"f7867b07-83c9-4d95-81b5-c8ff18b8aa90","block_type":"box","text":"instrument is issued or guaranteed by the U.S. Government or its agencies and/or instrumentalities, and (ii) the rate of interest on","page_number":320,"box":{"x":45,"y":603,"width":892,"height":12}},{"id":"80873bf3-4720-45e1-bff1-db4032e4991a","block_type":"box","text":"such instruments is adjusted at periodic intervals which may extend up to 397 days.","page_number":320,"box":{"x":46,"y":618,"width":579,"height":13}},{"id":"aa66f267-49dc-4b69-9dcb-4e20bea8b52a","block_type":"box","text":"In determining a Fund’s weighted average portfolio maturity an","page_number":320,"box":{"x":45,"y":640,"width":431,"height":13}},{"id":"6ea905a0-355c-4ca1-b999-5009f2780bc9","block_type":"box","text":"d whether a long-term variable rate demand instrument has a","page_number":320,"box":{"x":477,"y":640,"width":415,"height":13}},{"id":"9b0cfbf4-60ca-43eb-a084-9c7d66daaf1b","block_type":"box","text":"remaining maturity of 397 days or less, the instrument will be deemed by a Fund to have a maturity equal to the longer of the period","page_number":320,"box":{"x":45,"y":655,"width":899,"height":13}},{"id":"eae3ed64-b3c0-4cd5-a2d3-9e9e71aded06","block_type":"box","text":"remaining until its next interest rate adjustment or the period remai","page_number":320,"box":{"x":45,"y":671,"width":456,"height":12}},{"id":"81d742ac-82df-4e32-aaff-378d8728a7c0","block_type":"box","text":"ning until the principal amount can be recovered through demand.","page_number":320,"box":{"x":502,"y":671,"width":450,"height":12}},{"id":"3f863279-0e06-4ac8-b3a3-2757f38004f6","block_type":"box","text":"In determining a Fund’s weighted average portfolio maturity an","page_number":320,"box":{"x":45,"y":686,"width":431,"height":13}},{"id":"baa95c4b-1c21-4d69-94cf-6222a2da5d6a","block_type":"box","text":"d whether a long-term floating rate demand instrument has a","page_number":320,"box":{"x":477,"y":686,"width":413,"height":13}},{"id":"1431ba3b-f51f-4679-bb38-a490dc798e49","block_type":"box","text":"remaining maturity of 397 days or less, the instrument will be deemed by a Fund to have a maturity equal to the period remaining","page_number":320,"box":{"x":45,"y":701,"width":881,"height":13}},{"id":"461133b1-a488-4427-98c0-03319eea5422","block_type":"box","text":"until the principal amount can be recovered through demand. In additi","page_number":320,"box":{"x":46,"y":717,"width":478,"height":12}},{"id":"674a04da-c8c2-4827-b415-b9e52969eea5","block_type":"box","text":"on, a variable or floating rate instrument issued or guaranteed","page_number":320,"box":{"x":525,"y":717,"width":419,"height":12}},{"id":"7b73f4ec-0ed5-4e3e-ab21-a9379724aa69","block_type":"box","text":"by the U.S. Government or its agencies and/or instrumentalities will be deemed by a Fund to have a maturity equal to the period","page_number":320,"box":{"x":46,"y":732,"width":867,"height":13}},{"id":"ece06a45-6f26-4515-90b2-27580b20fc8b","block_type":"box","text":"remaining until its next interest rate adjustment (in the case of a var","page_number":320,"box":{"x":45,"y":747,"width":457,"height":13}},{"id":"97b099d4-e26d-4c0c-8af5-3f0964b7c85f","block_type":"box","text":"iable rate instrument) or one day (in the case of a floating rate","page_number":320,"box":{"x":503,"y":747,"width":418,"height":13}},{"id":"cbd085c0-a4ec-479f-878b-cc177bd6035e","block_type":"box","text":"instrument). Variable and floating rate notes are frequently rate","page_number":320,"box":{"x":45,"y":763,"width":430,"height":13}},{"id":"3d4c10ed-8e1b-4654-8b3c-050f70d92b45","block_type":"box","text":"d by credit rating agencies, and their issuers must satisfy the Fund’s","page_number":320,"box":{"x":476,"y":763,"width":453,"height":13}},{"id":"76b7a63e-fac0-4452-8e76-1cea5153f536","block_type":"box","text":"quality and maturity requirements. If an issuer of such a note were to default on its payment obligation, the Fund might be unable to","page_number":320,"box":{"x":46,"y":778,"width":898,"height":13}},{"id":"7a2784b2-2988-45db-9f91-fc11b890a5bf","block_type":"box","text":"dispose of the note because of the absence of an active secondary market and might, for this or other reasons, suffer a loss.","page_number":320,"box":{"x":46,"y":794,"width":827,"height":12}},{"id":"47028961-c6bb-4652-abcd-cf14697f3e62","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":320,"box":{"x":45,"y":815,"width":571,"height":13}},{"id":"d732c7c2-8e62-4eaf-8d8e-f7784474608e","block_type":"box","text":"A Fund may purchase or sell securities that it is","page_number":320,"box":{"x":622,"y":815,"width":326,"height":13}},{"id":"455af9d7-2c73-4575-89ea-ab83c5fdeb45","block_type":"box","text":"entitled to receive on a when-issued basis. A Fund may also purchase or sell securities on a delayed delivery basis or through a","page_number":320,"box":{"x":46,"y":831,"width":872,"height":12}},{"id":"5da21cbe-5dc5-4a6b-9612-5a66256af3ff","block_type":"box","text":"forward commitment (including on a “TBA” (to be announced) basis).","page_number":320,"box":{"x":45,"y":846,"width":491,"height":13}},{"id":"ef440086-9552-44a1-b502-5f6cf504c13d","block_type":"box","text":"These transactions involve the purchase or sale of securities","page_number":320,"box":{"x":541,"y":846,"width":411,"height":13}},{"id":"6c7dee60-c40d-420b-b5f7-9f81da507751","block_type":"box","text":"by a Fund at an established price with payment and delivery taking place in the future. The Fund enters into these transactions to","page_number":320,"box":{"x":46,"y":861,"width":894,"height":13}},{"id":"61f6b0c5-99fc-4bbb-9bcc-d91c7c111bf6","block_type":"box","text":"obtain what is considered an advantageous price to the Fund at the time of entering into the transaction.","page_number":320,"box":{"x":46,"y":877,"width":722,"height":13}},{"id":"a58c133d-a18f-4534-b9ec-dd8f89644d78","block_type":"box","text":"II-16","page_number":320,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"6cdc614b-f57b-4f55-ac69-418cf19fbc3c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":320,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8e1e4885-0abd-4473-b2a8-db9778d24f47","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal Reserve Bank of New","page_number":321,"box":{"x":45,"y":79,"width":891,"height":13}},{"id":"72e4bb71-1875-4383-bb0c-f58083223779","block_type":"box","text":"York, a Fund or its counterparty generally will be required to post collateral when entering into certain forward-settling","page_number":321,"box":{"x":45,"y":94,"width":831,"height":13}},{"id":"65baac59-d784-45cc-9a3a-a876ef368e35","block_type":"box","text":"transactions, including without limitation TBA transactions.","page_number":321,"box":{"x":45,"y":110,"width":417,"height":13}},{"id":"105999bc-b303-458c-9aed-bc6d2280fa31","block_type":"box","text":"There can be no assurance that a security purchased on a when-issu","page_number":321,"box":{"x":45,"y":133,"width":469,"height":12}},{"id":"4a49db6d-0f34-4aa1-a204-1a9c24107945","block_type":"box","text":"ed basis will be issued or that a security purchased or sold on a","page_number":321,"box":{"x":515,"y":133,"width":436,"height":12}},{"id":"9644cfe4-cbb6-4ca0-baee-13dfc67c263a","block_type":"box","text":"delayed delivery basis or through a forward commitment will be delivered. Also, the value of securities in these transactions on the","page_number":321,"box":{"x":46,"y":148,"width":903,"height":13}},{"id":"ebb30019-0d48-4df4-bf76-e6df0485f0ca","block_type":"box","text":"delivery date may be more or less than the price paid by the Fund to purchase the securities. The Fund will lose money if the value","page_number":321,"box":{"x":46,"y":164,"width":901,"height":12}},{"id":"1dba13f3-cca8-4bb8-9368-526a2ebe941f","block_type":"box","text":"of the security in such a transaction declines below the purchase p","page_number":321,"box":{"x":46,"y":179,"width":456,"height":13}},{"id":"f852368a-20c1-44b1-9de9-672514e877cb","block_type":"box","text":"rice and will not benefit if the value of the security appreciates","page_number":321,"box":{"x":503,"y":179,"width":429,"height":13}},{"id":"06921995-58b8-4142-b4af-16880e7b3f11","block_type":"box","text":"above the sale price during the commitment period.","page_number":321,"box":{"x":46,"y":195,"width":356,"height":12}},{"id":"78f04325-80b9-41c7-81cc-6d5a8966ac9a","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment after it has been","page_number":321,"box":{"x":45,"y":218,"width":861,"height":12}},{"id":"430bf14d-47e7-4295-b1ff-257ffb8af484","block_type":"box","text":"entered into, and may sell securities it has committed to purchase before those securities are delivered to the Fund on the","page_number":321,"box":{"x":46,"y":233,"width":833,"height":13}},{"id":"948e9d24-353b-466e-9290-006554c0a27e","block_type":"box","text":"settlement date. In these cases the Fund may realize a taxable capital gain or loss.","page_number":321,"box":{"x":46,"y":249,"width":560,"height":12}},{"id":"8afdbaa0-510e-4a22-b311-045b0cdbf815","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other party to consummate the","page_number":321,"box":{"x":45,"y":271,"width":889,"height":13}},{"id":"47cfeece-37db-4ba4-9aac-a9aed6aec5eb","block_type":"box","text":"trade. Failure of such party to do so may result in the Fund’s incurring a loss or missing an opportunity to obtain a price","page_number":321,"box":{"x":45,"y":287,"width":834,"height":13}},{"id":"c8dbaa88-c29c-458e-95e9-ebde097bdaa2","block_type":"box","text":"considered to be advantageous.","page_number":321,"box":{"x":45,"y":302,"width":216,"height":13}},{"id":"625c963c-7677-4fe3-a88d-a0f942ff4111","block_type":"box","text":"The market value of the securities underlying a commitment to pu","page_number":321,"box":{"x":45,"y":325,"width":459,"height":13}},{"id":"44bf5745-8522-4b69-b952-91bbc26b8cf4","block_type":"box","text":"rchase securities, and any subsequent fluctuations in their","page_number":321,"box":{"x":504,"y":325,"width":398,"height":13}},{"id":"24f8890d-60e5-4aa5-a173-3bf32a64ac7e","block_type":"box","text":"market value, is taken into account when determining the market value of a Fund starting on the day the Fund agrees to purchase","page_number":321,"box":{"x":45,"y":341,"width":899,"height":13}},{"id":"aa70ed1c-775e-4e14-bbcb-7fbbf11c857c","block_type":"box","text":"the securities. The Fund does not earn interest on the securities it h","page_number":321,"box":{"x":45,"y":356,"width":462,"height":10}},{"id":"4ea8977b-3578-480b-8f89-104afc502601","block_type":"box","text":"as committed to purchase until they are paid for and delivered","page_number":321,"box":{"x":508,"y":356,"width":430,"height":13}},{"id":"d05e9d86-37eb-430f-855e-23fa1cf1da1f","block_type":"box","text":"on the settlement date.","page_number":321,"box":{"x":46,"y":372,"width":155,"height":10}},{"id":"3f9cfb72-6246-42ce-aed0-e6079d562e43","block_type":"box","text":"Regulations adopted by global prudential regulators that are","page_number":321,"box":{"x":46,"y":395,"width":419,"height":12}},{"id":"bc985a87-6f86-4ce1-8643-7fd24d3625c1","block_type":"box","text":"now in effect require certain bank-regulated counterparties and","page_number":321,"box":{"x":470,"y":395,"width":438,"height":12}},{"id":"b0fe9de2-b2f7-4131-918f-8ac3896a96e7","block_type":"box","text":"certain of their affiliates to include in certain financial contra","page_number":321,"box":{"x":45,"y":410,"width":421,"height":10}},{"id":"df71492f-c334-4636-871b-7c8059492191","block_type":"box","text":"cts, including many agreements with respect to when-issued, TBA and","page_number":321,"box":{"x":467,"y":410,"width":485,"height":13}},{"id":"5bc484e4-a19e-4feb-add7-50a6b1837656","block_type":"box","text":"forward commitment transactions, terms that delay or restrict","page_number":321,"box":{"x":45,"y":426,"width":430,"height":12}},{"id":"58b2dbfc-8e66-473d-9448-c177c43310eb","block_type":"box","text":"the rights of counterparties, such as a Fund, to terminate such","page_number":321,"box":{"x":480,"y":426,"width":428,"height":12}},{"id":"350ab334-e2b6-4685-a851-e4eda157b90c","block_type":"box","text":"agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit support in the event that the","page_number":321,"box":{"x":46,"y":441,"width":856,"height":13}},{"id":"e6b2f953-4880-4161-b23e-6db2e670e678","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these new","page_number":321,"box":{"x":45,"y":457,"width":886,"height":12}},{"id":"0920d705-7f9f-4ade-83b5-a13b6bfcc217","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could adversely affect a","page_number":321,"box":{"x":45,"y":472,"width":908,"height":13}},{"id":"1ed136ec-f9df-4968-884d-b3c3f8a219d4","block_type":"box","text":"Fund’s ability to terminate existing agreements with respect to th","page_number":321,"box":{"x":45,"y":488,"width":450,"height":12}},{"id":"47699e24-4c8a-4494-ae7f-87919e043b73","block_type":"box","text":"ese transactions or to realize amounts to be received under such","page_number":321,"box":{"x":496,"y":488,"width":440,"height":10}},{"id":"f69d8b55-5d5d-49bf-8390-2d4e76e97f65","block_type":"box","text":"agreements.","page_number":321,"box":{"x":46,"y":506,"width":80,"height":10}},{"id":"26b63d96-253a-4362-b1a1-9f65634d2e25","block_type":"box","text":"Diversification Status","page_number":321,"box":{"x":45,"y":533,"width":155,"height":10}},{"id":"7971250f-5afe-4d82-bdf8-54d42ed9de5c","block_type":"box","text":"Each Fund’s investments will be limited in order to allow the Fund to continue to qualify as a regulated investment company","page_number":321,"box":{"x":45,"y":556,"width":865,"height":13}},{"id":"b3b68769-bfa7-45c0-93ca-662da0b6907d","block_type":"box","text":"under the Code. To qualify, among other requirements, each Fund will limit its investments so that at the close of each quarter of","page_number":321,"box":{"x":46,"y":572,"width":897,"height":13}},{"id":"20cc35a6-7dae-47c1-8e96-3902b92dc1f0","block_type":"box","text":"the taxable year (i) at least 50% of the market value of each Fund’s total assets is represented by cash, securities of other regulated","page_number":321,"box":{"x":45,"y":587,"width":903,"height":13}},{"id":"a375479b-4b6b-450e-b9b7-a288b321d9ae","block_type":"box","text":"investment companies, U.S. Government securities and other","page_number":321,"box":{"x":45,"y":603,"width":421,"height":13}},{"id":"f509fe1d-85fc-495f-80f7-762253699532","block_type":"box","text":"securities, with such other securities limited, in respect of any one","page_number":321,"box":{"x":472,"y":603,"width":452,"height":13}},{"id":"c6795f2c-d919-4b33-a551-7a55002375db","block_type":"box","text":"issuer, to an amount not greater than 5% of the Fund’s assets and not greater than 10% of the outstanding voting securities of","page_number":321,"box":{"x":45,"y":618,"width":879,"height":13}},{"id":"04589c03-2b3c-4995-ae74-301f528fddc1","block_type":"box","text":"such issuer and (ii) not more than 25% of the value of its assets is invested in the securities (other than U.S. Government securities","page_number":321,"box":{"x":46,"y":634,"width":900,"height":12}},{"id":"26c30eb7-a787-4249-b20b-a2d98556c4b0","block_type":"box","text":"or securities of other regulated investment companies) of any one","page_number":321,"box":{"x":46,"y":649,"width":451,"height":13}},{"id":"0baf3bcd-59b9-4117-aab5-1e59ec216b7d","block_type":"box","text":"issuer, any two or more issuers that the Fund controls and that","page_number":321,"box":{"x":502,"y":649,"width":435,"height":13}},{"id":"fa04d207-254c-4bc9-a4bb-1a4f733a790c","block_type":"box","text":"are determined to be engaged in the same or similar trades or businesses or related trades or businesses or in the securities of one","page_number":321,"box":{"x":46,"y":665,"width":889,"height":13}},{"id":"7b1b1e1a-dcc2-438e-a85a-0167840ec78b","block_type":"box","text":"or more qualified publicly traded partnerships (","page_number":321,"box":{"x":46,"y":680,"width":327,"height":13}},{"id":"671eced9-4c5d-4a13-8fe7-8a10f04a43c8","block_type":"box","text":"i.e.","page_number":321,"box":{"x":375,"y":681,"width":18,"height":9}},{"id":"0fb39c81-5d8b-4706-b00a-eb1d99326c45","block_type":"box","text":", partnerships that are traded on an established securities market or tradable on","page_number":321,"box":{"x":396,"y":680,"width":549,"height":13}},{"id":"1eaef3ce-2e81-4b6f-8191-6599abd32e82","block_type":"box","text":"a secondary market, other than partnerships that derive 90% of their income from interest, dividends, capital gains, and other","page_number":321,"box":{"x":46,"y":696,"width":874,"height":13}},{"id":"f88bf05f-7214-4004-bf43-80937f08d391","block_type":"box","text":"traditional permitted mutual fund income). See “Dividends and Taxes — Taxes.”","page_number":321,"box":{"x":45,"y":711,"width":564,"height":13}},{"id":"0fd9f87c-6cee-4dd2-829a-7d65b6298622","block_type":"box","text":"Each Fund has elected to be classified as “diversified” under the Investment Company Act. Each Fund must also satisfy the","page_number":321,"box":{"x":45,"y":734,"width":852,"height":13}},{"id":"555e72ed-88ff-45f4-8647-f70f81fc14a4","block_type":"box","text":"diversification requirements set forth in Rule 2a-7.","page_number":321,"box":{"x":46,"y":750,"width":348,"height":13}},{"id":"1919bcb6-1f68-4194-9e49-a913ff90ecb4","block_type":"box","text":"M","page_number":321,"box":{"x":302,"y":781,"width":16,"height":9}},{"id":"c30ea1f0-15a3-42cf-bbf7-07ec5a4ce435","block_type":"box","text":"ANAGEMENT AND","page_number":321,"box":{"x":319,"y":783,"width":129,"height":7}},{"id":"94121e5c-902e-4cf1-812d-a100936e0214","block_type":"box","text":"O","page_number":321,"box":{"x":454,"y":781,"width":12,"height":9}},{"id":"92e49ef0-1841-41f1-976f-7e3bbd34da8e","block_type":"box","text":"THER","page_number":321,"box":{"x":467,"y":783,"width":39,"height":7}},{"id":"77361f8a-be9d-4245-8ee2-8336fb206b24","block_type":"box","text":"S","page_number":321,"box":{"x":512,"y":781,"width":7,"height":9}},{"id":"b29f770e-73c5-4cba-901a-ad58abb218f0","block_type":"box","text":"ERVICE","page_number":321,"box":{"x":520,"y":783,"width":50,"height":7}},{"id":"618d6540-8a5d-4f39-b7a9-6103276dab78","block_type":"box","text":"A","page_number":321,"box":{"x":575,"y":780,"width":12,"height":10}},{"id":"87131cdd-dd92-4e64-a4c0-1f1777d43da0","block_type":"box","text":"RRANGEMENTS","page_number":321,"box":{"x":588,"y":783,"width":109,"height":7}},{"id":"fc17dcd6-9684-45f9-ba48-9c8386bb7378","block_type":"box","text":"Trustees and Officers","page_number":321,"box":{"x":45,"y":805,"width":155,"height":10}},{"id":"8d9bb078-7862-4a3e-a962-29bf402a9d0a","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘— Compensation of","page_number":321,"box":{"x":46,"y":831,"width":851,"height":12}},{"id":"4eb02a80-8d3a-4dcb-8c0a-53e264554c72","block_type":"box","text":"Directors’” or “Information on Trustees and Officers, ‘—Biogra","page_number":321,"box":{"x":45,"y":846,"width":445,"height":13}},{"id":"059f4be9-5133-4698-9cd0-9be2bed1dfc7","block_type":"box","text":"phical Information,’ ‘— Share Ownership’ and ‘— Compensation","page_number":321,"box":{"x":491,"y":846,"width":455,"height":13}},{"id":"40130520-44a8-45af-908f-b2334fa98289","block_type":"box","text":"of Trustees’,” as applicable, in Part I of each Fund’s SAI for biographical and certain other information relating to the Trustees","page_number":321,"box":{"x":46,"y":862,"width":878,"height":12}},{"id":"2d7a9308-1fea-4473-b47b-8d7a9b8677c9","block_type":"box","text":"and officers of your Fund, including Trustees’ compensation.","page_number":321,"box":{"x":46,"y":877,"width":421,"height":13}},{"id":"eb52731d-a245-4d20-92ad-6cf96a0c5cf3","block_type":"box","text":"II-17","page_number":321,"box":{"x":482,"y":917,"width":35,"height":9}},{"id":"9ec52596-61a8-496e-8a79-30847eaafd27","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":321,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b855b329-491f-403d-bacf-ae8535cfc132","block_type":"box","text":"Management Arrangements","page_number":322,"box":{"x":45,"y":79,"width":201,"height":13}},{"id":"380b1118-dd2e-46c1-9ef5-06a127715d72","block_type":"box","text":"Management Services.","page_number":322,"box":{"x":45,"y":105,"width":153,"height":12}},{"id":"7ae8348b-ed4b-41f7-8bd1-f784e1fbfe11","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services. Subject to the","page_number":322,"box":{"x":204,"y":105,"width":697,"height":12}},{"id":"20ef2d88-fd83-4365-ab44-0ed31a88d05e","block_type":"box","text":"supervision of the Board of Trustees, the Manager is responsible for the actual management of a Fund’s portfolio and reviews the","page_number":322,"box":{"x":46,"y":120,"width":896,"height":13}},{"id":"54924f91-23c3-47f5-b7d0-a56c10180176","block_type":"box","text":"Fund’s holdings in light of its own research analysis and that from other relevant sources. The responsibility for making decisions","page_number":322,"box":{"x":45,"y":136,"width":896,"height":12}},{"id":"9ca5e913-6309-40da-9154-779a35c33b92","block_type":"box","text":"to buy, sell or hold a particular security rests with the Manager. The Manager performs certain of the other administrative services","page_number":322,"box":{"x":45,"y":151,"width":906,"height":13}},{"id":"29775608-64bc-4132-b254-45dc37ccc282","block_type":"box","text":"and provides all the office space, facilities, equipment and necessary personnel for management of each Fund.","page_number":322,"box":{"x":46,"y":167,"width":757,"height":12}},{"id":"e746247c-18c5-4103-89dc-9878a69d40fa","block_type":"box","text":"Management Fee.","page_number":322,"box":{"x":45,"y":191,"width":122,"height":12}},{"id":"e8136cba-9651-427c-91b1-82ecb25daaf2","block_type":"box","text":"Each Fund has entered into a management agreement with the Manager pursuant to which the Manager","page_number":322,"box":{"x":173,"y":190,"width":726,"height":13}},{"id":"f927d6b0-7b88-4c32-b72b-005833322347","block_type":"box","text":"receives for its services to the Fund monthly compensation at an annual rate based on the average daily net assets of the Fund. For","page_number":322,"box":{"x":45,"y":205,"width":902,"height":13}},{"id":"4fc784aa-06ee-48eb-a20b-2b6469f48a18","block_type":"box","text":"information regarding the fees paid by your Fund to the Manager fo","page_number":322,"box":{"x":45,"y":221,"width":466,"height":13}},{"id":"5d021a01-3d7e-4dd7-a4fb-81aa587ba887","block_type":"box","text":"for the Fund’s last three fiscal years or other applicable periods,","page_number":322,"box":{"x":511,"y":221,"width":434,"height":13}},{"id":"5cd7226a-5ef2-4632-a363-d91b20c2f47c","block_type":"box","text":"see “Management, Advisory and Other Service Arrangements — Management Agreement” or “Management and Advisory","page_number":322,"box":{"x":46,"y":236,"width":856,"height":13}},{"id":"ee2ee13a-de17-4abf-aa49-a65142653a50","block_type":"box","text":"Arrangements,” as applicable, in Part I of each Fund’s SAI. Each Management Agreement obligates the Manager to provide","page_number":322,"box":{"x":45,"y":252,"width":859,"height":13}},{"id":"6c0b7491-68bf-4f64-9a06-2e20e4451c50","block_type":"box","text":"investment advisory services and to pay, or cause an affiliate to pay, for maintaining its staff and personnel and to provide office","page_number":322,"box":{"x":45,"y":267,"width":889,"height":13}},{"id":"cbbd8261-c54a-4b54-9a4f-a22c5e619583","block_type":"box","text":"space, facilities and necessary personnel for the Fund. Each Manager is also obligated to pay, or cause an affiliate to pay, the fees","page_number":322,"box":{"x":46,"y":283,"width":892,"height":13}},{"id":"a9ed8ce1-5be1-4a71-b078-a3f909111c0d","block_type":"box","text":"of all officers and Trustees of the Fund who are affiliated persons of the Manager or any affiliate.","page_number":322,"box":{"x":46,"y":298,"width":673,"height":13}},{"id":"6f79feea-37ec-44d5-8fcc-c4b85b949d90","block_type":"box","text":"For Funds that do not have an administration agreement with the Manager, each Management Agreement obligates the Manager","page_number":322,"box":{"x":45,"y":322,"width":899,"height":12}},{"id":"5dd64773-4cbb-45b0-8776-60e96fd2890f","block_type":"box","text":"to provide management services and to pay all compensation of and furnish office space for officers and employees of a Fund","page_number":322,"box":{"x":45,"y":337,"width":869,"height":13}},{"id":"881f902b-96f8-4571-aea6-d54683982224","block_type":"box","text":"connected with investment and economic research, trading and investment management of the Fund, as well as the fees of all","page_number":322,"box":{"x":45,"y":353,"width":866,"height":12}},{"id":"40830b1b-2e9c-4ed5-bc34-dac8139241f9","block_type":"box","text":"Trustees of the Fund who are interested persons of the Fund. Each Fund pays all other expenses incurred in the operation of that","page_number":322,"box":{"x":45,"y":368,"width":893,"height":13}},{"id":"48344571-3e9a-47f7-a895-af7ad0796f32","block_type":"box","text":"Fund, including among other things: taxes; expenses for legal","page_number":322,"box":{"x":45,"y":384,"width":424,"height":12}},{"id":"fca75373-afd6-4d62-8ad8-63552b4a00cb","block_type":"box","text":"and auditing services; costs of preparing, printing and mailing","page_number":322,"box":{"x":474,"y":384,"width":428,"height":12}},{"id":"6f5b4440-afce-4818-a239-de1f44829394","block_type":"box","text":"proxies, shareholder reports, prospectuses and statements of a","page_number":322,"box":{"x":45,"y":399,"width":430,"height":13}},{"id":"3e39a309-98ef-4448-8be0-a80ac45d7e12","block_type":"box","text":"dditional information, except to the extent paid by BlackRock","page_number":322,"box":{"x":476,"y":399,"width":431,"height":13}},{"id":"8526149f-ebc9-4814-919a-93cfa53774ff","block_type":"box","text":"Investments, LLC (the “Distributor” or “BRIL”), charges of the c","page_number":322,"box":{"x":45,"y":415,"width":455,"height":12}},{"id":"a9684c7c-4223-46bb-8f75-8b299ab2217c","block_type":"box","text":"ustodian and sub-custodian, and the transfer agent; expenses of","page_number":322,"box":{"x":501,"y":415,"width":440,"height":12}},{"id":"4e7b3f03-75a5-44cb-a91a-2fc6926da9c2","block_type":"box","text":"redemption of shares; Commission fees; expenses of registering the shares under Federal, state or foreign laws; fees and expenses","page_number":322,"box":{"x":45,"y":430,"width":890,"height":13}},{"id":"4846a48d-b3d2-469b-9e36-91413f5481b1","block_type":"box","text":"of Trustees who are not interested persons of a Fund as defined in the Investment Company Act; accounting and pricing costs","page_number":322,"box":{"x":46,"y":446,"width":870,"height":13}},{"id":"a9232315-3eb5-4c5f-8f3c-dc69a8b3a52e","block_type":"box","text":"(including the daily calculations of NAV); insurance; interest; b","page_number":322,"box":{"x":46,"y":461,"width":437,"height":13}},{"id":"f4f723a6-8a13-48e9-b7d3-53483a10f0a5","block_type":"box","text":"rokerage costs; litigation and other extraordinary or non-recurring","page_number":322,"box":{"x":484,"y":461,"width":461,"height":13}},{"id":"b41bbbfd-68fa-46ac-85a1-793e2fcc4742","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Certain accounting services are provided to each Fund by The Bank of","page_number":322,"box":{"x":46,"y":477,"width":908,"height":13}},{"id":"d3929f0f-b664-48fc-9752-fc306535a525","block_type":"box","text":"New York Mellon (“BNYM”), State Street Bank and Trust Company (“State Street”) or JPMorgan Chase Bank, N.A. (“JPM”)","page_number":322,"box":{"x":45,"y":492,"width":886,"height":13}},{"id":"734889bd-b84e-4cf2-b8e6-da015080f417","block_type":"box","text":"pursuant to an agreement between BNYM, State Street or JPM, as applicable, and each Fund. Each Fund pays a fee for these","page_number":322,"box":{"x":45,"y":508,"width":867,"height":13}},{"id":"8c210918-ff68-4a5e-bec1-d8c52b7073c5","block_type":"box","text":"services. In addition, the Manager provides certain accounting services to each Fund and the Fund pays the Manager a fee for such","page_number":322,"box":{"x":46,"y":523,"width":905,"height":13}},{"id":"3f3506f3-f323-4c3d-80cd-882f7231f839","block_type":"box","text":"services. The Distributor pays certain promotional expenses of the Funds incurred in connection with the offering of shares of the","page_number":322,"box":{"x":46,"y":539,"width":896,"height":13}},{"id":"65bbf40c-63e1-406f-9a0b-c2dd3c0e4429","block_type":"box","text":"Funds. Certain expenses are financed by each Fund pursuant to distribution plans in compliance with Rule 12b-1 under the","page_number":322,"box":{"x":45,"y":554,"width":857,"height":13}},{"id":"43eba6d7-27b7-4a51-a15d-d2c236948625","block_type":"box","text":"Investment Company Act. See “Purchase of Shares — Distribution and/or Shareholder Servicing Plans.”","page_number":322,"box":{"x":45,"y":570,"width":720,"height":13}},{"id":"8981b2d9-86a4-4c10-a3d8-37baa0520310","block_type":"box","text":"Organization of the Manager.","page_number":322,"box":{"x":46,"y":593,"width":206,"height":13}},{"id":"6077f0de-4b98-44f8-a484-d5fdb63dd090","block_type":"box","text":"The Manager, BlackRock Advisors, LLC, is a Delaware limited liability company and an indirect,","page_number":322,"box":{"x":258,"y":593,"width":678,"height":13}},{"id":"f368c92b-87fb-4aff-8b29-e4db3af3b071","block_type":"box","text":"majority-owned subsidiary of BlackRock, Inc.","page_number":322,"box":{"x":45,"y":608,"width":318,"height":13}},{"id":"f2c5bbcb-b680-4735-9f4f-4723a7f8a595","block_type":"box","text":"Duration and Termination.","page_number":322,"box":{"x":45,"y":632,"width":190,"height":10}},{"id":"8aa9105e-3d72-4e04-94e4-aa230f58f35c","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement will remain in effect from","page_number":322,"box":{"x":241,"y":632,"width":704,"height":13}},{"id":"5753a398-f65e-4ea1-b288-8266b3faf5d0","block_type":"box","text":"year to year if approved annually (a) by the Trustees or by a vote of a majority of the outstanding voting securities of the Fund and","page_number":322,"box":{"x":45,"y":647,"width":908,"height":13}},{"id":"c251b9b0-f6b8-4eaf-aa62-86fa22879ded","block_type":"box","text":"(b) by a majority of the Trustees who are not parties to such agreement or interested persons (as defined in the Investment","page_number":322,"box":{"x":46,"y":663,"width":845,"height":13}},{"id":"8d19593c-9874-4c63-a5ce-78325e17c904","block_type":"box","text":"Company Act) of any such party. The Management Agreements are not assignable and may be terminated without penalty on","page_number":322,"box":{"x":46,"y":678,"width":875,"height":13}},{"id":"4855d221-373c-4acd-97f4-02f4fdc53d89","block_type":"box","text":"60 days’ written notice at the option of either party thereto or by the vote of the shareholders of the Fund.","page_number":322,"box":{"x":46,"y":694,"width":734,"height":13}},{"id":"15f2ad8a-89e8-4c1b-99e4-a95d52227242","block_type":"box","text":"Other Service Arrangements","page_number":322,"box":{"x":46,"y":725,"width":203,"height":13}},{"id":"20dd94d5-454d-48f5-b247-72e03fd82aee","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":322,"box":{"x":45,"y":751,"width":330,"height":10}},{"id":"6f888dd7-8038-4315-b2ec-518df6adc6cb","block_type":"box","text":"Certain Funds have entered into an administration agreement (the","page_number":322,"box":{"x":382,"y":751,"width":457,"height":12}},{"id":"f25e5479-5e6b-4a64-83b4-357ca817366c","block_type":"box","text":"“Administration Agreement”) with an administrator identifie","page_number":322,"box":{"x":47,"y":766,"width":424,"height":13}},{"id":"c3bb51fe-00c6-4650-b205-8487ca7e31f1","block_type":"box","text":"d in the Fund’s Prospectus and Part I of the Fund’s SAI (each, an","page_number":322,"box":{"x":472,"y":766,"width":446,"height":13}},{"id":"6e5594d1-8ef6-44a0-937f-76c6a725ccf6","block_type":"box","text":"“Administrator”). For its services to a Fund, the Administrator receives monthly compensation at the annual rate set forth in each","page_number":322,"box":{"x":47,"y":782,"width":899,"height":12}},{"id":"1fcc3934-539a-433d-8588-04cf3be24a2d","block_type":"box","text":"applicable Fund’s Prospectus. For information regarding any adm","page_number":322,"box":{"x":46,"y":797,"width":455,"height":13}},{"id":"3f60bc8b-9f66-4a4a-a1d9-abacf2dccda7","block_type":"box","text":"inistrative fees paid by your Fund to the Administrator for the","page_number":322,"box":{"x":502,"y":797,"width":429,"height":13}},{"id":"d6807f94-8d35-4399-8c95-0e5c2d745ca5","block_type":"box","text":"periods indicated, see “Management, Advisory and Other Servic","page_number":322,"box":{"x":45,"y":813,"width":447,"height":12}},{"id":"e69b1bd3-be70-4ccc-8b5d-9511b77db2e5","block_type":"box","text":"e Arrangements — Administration Agreement” or “Management","page_number":322,"box":{"x":492,"y":813,"width":454,"height":12}},{"id":"b5ba2d5c-f313-4d4e-ae97-a5f2ecb74781","block_type":"box","text":"and Advisory Arrangements,” as applicable, in Part I of that Fund’s SAI.","page_number":322,"box":{"x":46,"y":828,"width":501,"height":13}},{"id":"5683c810-4d82-4ae7-8c18-a6d965968c20","block_type":"box","text":"For Funds that have an Administrator, the Administration Ag","page_number":322,"box":{"x":45,"y":851,"width":428,"height":13}},{"id":"b8a0c0f1-eb9d-45a6-88f3-9321c7bf46e3","block_type":"box","text":"reement obligates the Administrator to provide certain","page_number":322,"box":{"x":474,"y":851,"width":378,"height":13}},{"id":"9624ffc7-2acb-4e24-8b9b-84475bb99e1d","block_type":"box","text":"administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and personnel and to provide","page_number":322,"box":{"x":46,"y":867,"width":896,"height":13}},{"id":"4b7a4e8a-3139-4d0f-a4b1-204b3ec37938","block_type":"box","text":"II-18","page_number":322,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"a5112c1f-6779-47b7-b8d0-0a3d30a282e6","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":322,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"bb0e3c41-9c02-4455-95ed-352294227c0b","block_type":"box","text":"office space, facilities and necessary personnel for the Fund. Each Administrator is also obligated to pay, or cause its affiliates to","page_number":323,"box":{"x":46,"y":79,"width":885,"height":13}},{"id":"561f0c12-8e88-4132-9ff1-7c6e76dd52ab","block_type":"box","text":"pay, the fees of those officers and Trustees of the Fund who are affiliated persons of the Administrator or any of its affiliates.","page_number":323,"box":{"x":45,"y":94,"width":864,"height":13}},{"id":"0cab2ce3-7ba3-4fa7-bbb1-eac8276944fb","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":323,"box":{"x":45,"y":117,"width":398,"height":12}},{"id":"5c818422-e208-4a47-a1f0-884e3c9139c8","block_type":"box","text":"Unless earlier terminated as described below, each Administration","page_number":323,"box":{"x":449,"y":117,"width":458,"height":12}},{"id":"f27c1117-c9de-4d12-a54e-6afc070c7c1d","block_type":"box","text":"Agreement with BlackRock will continue from year to year if approved annually (a) by the Board of Trustees of each applicable","page_number":323,"box":{"x":45,"y":132,"width":887,"height":13}},{"id":"b9b9b0ab-d77b-477e-b169-56f1990e2f48","block_type":"box","text":"Fund or by a vote of a majority of the outstanding voting securities of such Fund and (b) by a majority of the Trustees of the Fund","page_number":323,"box":{"x":45,"y":148,"width":904,"height":13}},{"id":"fde90ffe-8b09-4fcc-8a51-74fa56313068","block_type":"box","text":"who are not parties to such contract or interested persons (as defined in the Investment Company Act) of any such party. Such","page_number":323,"box":{"x":45,"y":163,"width":876,"height":13}},{"id":"abba1e44-f680-4cba-8dbf-a1fa4ae99d2c","block_type":"box","text":"contract is not assignable and may be terminated without penalty on written notice at the option of either party thereto or by the","page_number":323,"box":{"x":45,"y":179,"width":895,"height":13}},{"id":"16a12ade-3b29-4114-8f0b-c10116bbc524","block_type":"box","text":"vote of the shareholders of the Fund.","page_number":323,"box":{"x":45,"y":194,"width":254,"height":10}},{"id":"11e0fac6-820a-40e4-91bf-3f891b3f392b","block_type":"box","text":"Transfer Agency Services.","page_number":323,"box":{"x":46,"y":217,"width":176,"height":12}},{"id":"a174afda-4fac-40b8-864b-0bc3b6408eb1","block_type":"box","text":"Each Fund has entered into an agreement with a transfer agent identified in the Fund’s Prospectus and","page_number":323,"box":{"x":228,"y":217,"width":708,"height":12}},{"id":"3307b648-8739-4d96-bbd6-021b24c04a79","block_type":"box","text":"Part I of the Fund’s SAI, pursuant to which the transfer agent is","page_number":323,"box":{"x":45,"y":232,"width":440,"height":13}},{"id":"8addecdd-31ac-4ca7-9003-1ff1be883989","block_type":"box","text":"responsible for the issuance, transfer, and redemption of shares","page_number":323,"box":{"x":490,"y":232,"width":436,"height":13}},{"id":"9a3a69dc-f102-429b-9054-0030c08a592a","block_type":"box","text":"and the opening and maintenance of shareholder accounts. Each Fund pays a fee for these services.","page_number":323,"box":{"x":46,"y":248,"width":684,"height":12}},{"id":"68da9be8-7e35-469b-ac72-a718b13a0aa5","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements, ‘— Transfer Agent’ or ‘— Transfer Agency Agreement’” or","page_number":323,"box":{"x":46,"y":270,"width":849,"height":13}},{"id":"ece301eb-6053-4f74-98a8-0d6b3962e2f8","block_type":"box","text":"“Management and Advisory Arrangements — Transfer Agency and Shareholders’ Administrative Services,” as applicable, in Part I","page_number":323,"box":{"x":47,"y":286,"width":906,"height":12}},{"id":"9736c462-5f46-49be-9203-4ff31d5dd7c1","block_type":"box","text":"of each Fund’s SAI.","page_number":323,"box":{"x":46,"y":301,"width":133,"height":10}},{"id":"45ddf047-60d0-48ab-849d-b455c0140c13","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":323,"box":{"x":45,"y":323,"width":337,"height":13}},{"id":"3f9be141-8c3a-491b-9e07-b6643281e5a9","block_type":"box","text":"The Audit Committee of each Fund, the members of which are non-interested","page_number":323,"box":{"x":388,"y":323,"width":540,"height":13}},{"id":"4948da44-8b3a-4e55-8917-f3c54b2ddc06","block_type":"box","text":"Trustees of the Fund, has selected an independent registered public accounting firm for that Fund that audits the Fund’s financial","page_number":323,"box":{"x":45,"y":339,"width":893,"height":13}},{"id":"7b526480-5032-48d4-9df3-9744cd4c02e8","block_type":"box","text":"statements. Please see the inside back cover page of your Fund’s Prospectus and Part I, Section IX “Additional Information” of","page_number":323,"box":{"x":46,"y":354,"width":879,"height":13}},{"id":"f23e6964-46dd-4e4f-902e-608e21aa2a63","block_type":"box","text":"each Fund’s SAI for information on your Fund’s independent registered public accounting firm.","page_number":323,"box":{"x":46,"y":370,"width":660,"height":13}},{"id":"da1b6ea1-a4ef-4447-8964-fd037e33f138","block_type":"box","text":"Custodian Services.","page_number":323,"box":{"x":46,"y":392,"width":133,"height":10}},{"id":"b28d92d3-4e7f-4417-8623-09ed2fcbc278","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the inside back cover","page_number":323,"box":{"x":185,"y":392,"width":761,"height":13}},{"id":"eeb059b5-a560-4a74-8578-1abfff44783e","block_type":"box","text":"page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the Fund’s cash and securities,","page_number":323,"box":{"x":45,"y":408,"width":858,"height":13}},{"id":"5f478778-9102-400f-b532-ca48c9df9b0b","block_type":"box","text":"handling the receipt and delivery of securities and collecting interest and dividends on the Fund’s investments. The Custodian is","page_number":323,"box":{"x":45,"y":423,"width":882,"height":13}},{"id":"aaa08e3b-204c-4f95-9372-0c69f2cb9c54","block_type":"box","text":"authorized to establish separate accounts in foreign currencies","page_number":323,"box":{"x":46,"y":439,"width":428,"height":13}},{"id":"fc3691cb-14e5-496c-9303-e17b8e5f2125","block_type":"box","text":"and to cause foreign securities owned by the Fund to be held in its","page_number":323,"box":{"x":480,"y":439,"width":457,"height":13}},{"id":"5fd2a3fa-fea4-4e46-acd1-d05fa7c7e537","block_type":"box","text":"offices outside the United States and with certain foreign banks and securities depositories. A Fund also may use special purpose","page_number":323,"box":{"x":46,"y":454,"width":887,"height":13}},{"id":"8b75680c-95b9-45df-a6b6-12c5d0584570","block_type":"box","text":"custodian banks from time to time for certain assets.","page_number":323,"box":{"x":45,"y":470,"width":363,"height":10}},{"id":"329d823e-4016-4b5c-ad55-15fafbb8671b","block_type":"box","text":"Accounting Services.","page_number":323,"box":{"x":45,"y":493,"width":142,"height":12}},{"id":"2d017973-370d-4414-b9fc-5358e6569f42","block_type":"box","text":"Each Fund has entered into an agreement with BNYM, State Street or JPM, pursuant to which BNYM, State","page_number":323,"box":{"x":193,"y":492,"width":756,"height":13}},{"id":"4e9f0b03-f03c-4c05-960e-01fc917fb09b","block_type":"box","text":"Street or JPM provides certain accounting and administrative services to the Fund. Each Fund pays a fee for these services.","page_number":323,"box":{"x":46,"y":508,"width":846,"height":13}},{"id":"9b4a3bbc-8278-454a-88ea-87b7cadf6abd","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and Advisory","page_number":323,"box":{"x":46,"y":530,"width":825,"height":13}},{"id":"f17ff239-379f-4fe5-9dd1-cc138e3f1330","block_type":"box","text":"Arrangements — Accounting Services,” as applicable, in Part I of each Fund’s SAI for information on the amounts paid by your","page_number":323,"box":{"x":45,"y":546,"width":887,"height":13}},{"id":"c4aed41e-a113-4210-a9e6-1d72f9dda301","block_type":"box","text":"Fund to BNYM, State Street or JPM, the Manager and/or the Administrator for the periods indicated.","page_number":323,"box":{"x":45,"y":561,"width":707,"height":13}},{"id":"6419eaaf-402d-4cce-9ced-0a05db4b2cb5","block_type":"box","text":"Distribution Expenses.","page_number":323,"box":{"x":45,"y":584,"width":158,"height":12}},{"id":"457370dc-4984-400a-87c0-0df9ba7ddac5","block_type":"box","text":"Each Fund has entered into a distribution agreem","page_number":323,"box":{"x":209,"y":584,"width":342,"height":12}},{"id":"57de2cab-028f-428f-9ca0-7368ce53640d","block_type":"box","text":"ent with the Distributor in connection with the","page_number":323,"box":{"x":552,"y":584,"width":324,"height":10}},{"id":"de749e75-6e1d-4aea-826b-910ee31dbd82","block_type":"box","text":"continuous offering of each class of shares of the Fund (the “Distri","page_number":323,"box":{"x":45,"y":599,"width":461,"height":13}},{"id":"2950096b-4951-4d42-bd6a-164f1154371e","block_type":"box","text":"bution Agreements”). The Distribution Agreements obligate the","page_number":323,"box":{"x":507,"y":599,"width":442,"height":13}},{"id":"7a1b9b98-7609-4387-9ecd-4f6c10c018bf","block_type":"box","text":"Distributor to pay certain expenses in connection with the offering of each class of shares of the Funds. After the prospectuses,","page_number":323,"box":{"x":45,"y":615,"width":876,"height":12}},{"id":"a144f7f0-bc6a-4574-822a-bfea1f83daa5","block_type":"box","text":"statements of additional information and periodic reports h","page_number":323,"box":{"x":46,"y":630,"width":412,"height":13}},{"id":"652f9015-54e8-4c88-ad53-aa1b2a41d2d0","block_type":"box","text":"ave been prepared, set in type and mailed to shareholders, the","page_number":323,"box":{"x":459,"y":630,"width":426,"height":13}},{"id":"45600b7d-af99-461d-a839-4251d49345c0","block_type":"box","text":"Distributor pays for the printing and distribution of these docum","page_number":323,"box":{"x":45,"y":646,"width":450,"height":13}},{"id":"98afbdd7-4816-435b-adc3-57b46d276d2a","block_type":"box","text":"ents used in connection with the offering to dealers and investors.","page_number":323,"box":{"x":496,"y":646,"width":453,"height":13}},{"id":"97c5700b-870e-41d5-b157-5cc23293a19b","block_type":"box","text":"The Distributor also pays for other supplementary sales literature","page_number":323,"box":{"x":45,"y":661,"width":453,"height":13}},{"id":"11299578-d2e8-42c8-8364-c6842092f139","block_type":"box","text":"and advertising costs. 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BlackRock may also determine to","page_number":330,"box":{"x":45,"y":172,"width":442,"height":13}},{"id":"4067a27b-8de5-4757-9714-1ec15d0f4ac2","block_type":"box","text":"rely on the actions of similarly situated holders of loans or","page_number":330,"box":{"x":492,"y":172,"width":404,"height":13}},{"id":"99a2e1c7-4ef7-4f8f-a3a0-351e729077d8","block_type":"box","text":"securities rather than, or in connection with, taking such actions itself on behalf of the Funds.","page_number":330,"box":{"x":46,"y":187,"width":646,"height":13}},{"id":"0822812a-7ded-45b8-8bf1-ab29e88bb345","block_type":"box","text":"In addition, to the extent permitted by applicable law, certain Funds may invest their assets in other funds advised by BlackRock,","page_number":330,"box":{"x":45,"y":213,"width":895,"height":13}},{"id":"c220e2f2-26d2-4375-8be3-acbd386885d9","block_type":"box","text":"including funds that are managed by one or more of the same portfolio managers, which could result in conflicts of interest","page_number":330,"box":{"x":45,"y":228,"width":855,"height":13}},{"id":"1e987697-28e5-4e79-b7eb-d2e13da58e02","block_type":"box","text":"relating to asset allocation, timing of Fund purchases and red","page_number":330,"box":{"x":45,"y":244,"width":424,"height":13}},{"id":"b96dbdb1-09e0-455d-9159-8daa979d2faa","block_type":"box","text":"emptions, and increased remuneration and profitability for","page_number":330,"box":{"x":470,"y":244,"width":408,"height":13}},{"id":"e4e0a25e-7bf3-4bb3-9c8e-ac951dc63988","block_type":"box","text":"BlackRock and/or its personnel, including portfolio managers.","page_number":330,"box":{"x":46,"y":259,"width":430,"height":13}},{"id":"4bd75907-67c7-4372-b420-237f87fd3ef5","block_type":"box","text":"Third parties, including service providers to BlackRock or the Fund, may sponsor events (including, but not limited to, marketing","page_number":330,"box":{"x":45,"y":285,"width":898,"height":13}},{"id":"28344156-c9d2-46bb-9b33-391cc585ebf6","block_type":"box","text":"and promotional activities and presentations, educational train","page_number":330,"box":{"x":46,"y":300,"width":435,"height":13}},{"id":"30ff25e9-b7e7-4d57-aa00-3c8164b12d35","block_type":"box","text":"ing programs and conferences) for registered representatives, other","page_number":330,"box":{"x":481,"y":300,"width":462,"height":13}},{"id":"44e1ae4e-4bfc-44ff-bc41-b5b5a6e01e75","block_type":"box","text":"professionals and individual investors. 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As a result, prices, availability, liquidity and terms of the Fund’s investments may be","page_number":330,"box":{"x":45,"y":475,"width":867,"height":13}},{"id":"83bd7132-0316-4baf-b95e-edf9a73f1565","block_type":"box","text":"negatively impacted by the activities of BlackRock or its clients, and transactions for the Fund may be impaired or effected at","page_number":330,"box":{"x":45,"y":491,"width":867,"height":12}},{"id":"0345f676-0752-469a-a5c9-2c83c9118b3c","block_type":"box","text":"prices or terms that may be less favorable than would otherwise have been the case.","page_number":330,"box":{"x":45,"y":506,"width":579,"height":13}},{"id":"9cfcc8b9-c7ce-4092-bdbb-082fcbef6197","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for its proprietary","page_number":330,"box":{"x":45,"y":532,"width":874,"height":12}},{"id":"437c3f04-0b2f-485d-ae86-146aa5da1361","block_type":"box","text":"accounts or other accounts (including investment companies or c","page_number":330,"box":{"x":46,"y":547,"width":449,"height":13}},{"id":"b7f3a781-c690-4196-a1bf-d18bb03d1a88","block_type":"box","text":"ollective investment vehicles) that it manages or advises. 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As a result, there may be","page_number":330,"box":{"x":445,"y":666,"width":454,"height":12}},{"id":"1958473e-fa4b-46c5-bba9-eb5f2a1af1a4","block_type":"box","text":"periods, for example, when BlackRock will not initiate or recommend certain types of transactions in certain securities or","page_number":330,"box":{"x":45,"y":681,"width":841,"height":13}},{"id":"c45e75ff-b0da-4cb3-9563-dff5b63bcd07","block_type":"box","text":"instruments with respect to which BlackRock is performing servi","page_number":330,"box":{"x":45,"y":697,"width":449,"height":12}},{"id":"df70ee5e-b212-4c28-bfe3-047e5ea834f1","block_type":"box","text":"ces or when position limits have been reached. 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BlackRock will not be","page_number":330,"box":{"x":45,"y":784,"width":454,"height":13}},{"id":"2bcf97c0-eee7-4acc-b6bf-58bcaf4245e3","block_type":"box","text":"under any obligation, however, to effect transactions on behalf","page_number":330,"box":{"x":504,"y":784,"width":436,"height":13}},{"id":"7dce998e-7e44-4f26-aaf4-b4bb1b3c4244","block_type":"box","text":"of a Fund in accordance with such analysis and models. 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To the extent","page_number":331,"box":{"x":527,"y":79,"width":416,"height":13}},{"id":"65438612-4fa8-40b4-b40d-ae1fb2374ea4","block_type":"box","text":"clients invest in these investment models and increase the assets under management of the Funds, the investment management fee","page_number":331,"box":{"x":45,"y":94,"width":895,"height":13}},{"id":"a6599dec-513f-40bf-badc-cbb8ffbb0e56","block_type":"box","text":"amounts paid by the Funds to BlackRock may also increase. The net asset value and liquidity of a Fund may be impacted by","page_number":331,"box":{"x":46,"y":110,"width":861,"height":13}},{"id":"2af132e9-d9c0-492f-a8aa-87f74ec28eef","block_type":"box","text":"purchases and sales of the Fund by model-driven investment portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":331,"box":{"x":45,"y":125,"width":890,"height":13}},{"id":"e6eb99fe-5fc0-469b-97ac-2d7da0c98e54","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s i","page_number":331,"box":{"x":45,"y":149,"width":454,"height":12}},{"id":"4fce77ba-0039-434a-b6f7-ccee9032fc30","block_type":"box","text":"nvestment adviser are also principals or employees of other","page_number":331,"box":{"x":500,"y":149,"width":409,"height":12}},{"id":"1e4c8197-9f55-4c9e-90fd-759990b509dc","block_type":"box","text":"business units or entities within BlackRock. As a result, these prin","page_number":331,"box":{"x":46,"y":164,"width":455,"height":13}},{"id":"a3256a61-12cc-43c1-acdc-04a5a951b129","block_type":"box","text":"cipals and employees may have obligations to such other","page_number":331,"box":{"x":501,"y":164,"width":393,"height":13}},{"id":"e2c6268a-62cd-4eaf-914e-324f56ebca86","block_type":"box","text":"business units or entities or their clients and such obligations to other business units or entities or their clients may be a","page_number":331,"box":{"x":46,"y":180,"width":822,"height":12}},{"id":"d7075bba-ac93-4d83-9eb9-9b6774b7b2d3","block_type":"box","text":"consideration of which investors in a Fund should be aware.","page_number":331,"box":{"x":45,"y":195,"width":418,"height":10}},{"id":"3232f79f-8375-4ed3-b81a-e9cb697c3537","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund in which clients of","page_number":331,"box":{"x":46,"y":218,"width":896,"height":13}},{"id":"2ff7e14e-868a-43bd-abca-d8f59cc37bc2","block_type":"box","text":"BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves as the counterparty, principal or","page_number":331,"box":{"x":46,"y":234,"width":903,"height":13}},{"id":"6230604a-358f-4e3f-9079-5eb0dc57884f","block_type":"box","text":"issuer. 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Trading activity in these derivative products","page_number":331,"box":{"x":488,"y":366,"width":423,"height":12}},{"id":"db3433b9-f7cf-4db3-834d-c96adfe2b225","block_type":"box","text":"could also potentially lead to greater liquidity for such pr","page_number":331,"box":{"x":45,"y":381,"width":396,"height":13}},{"id":"b1bc631c-d2c8-4c25-bb25-142691a64f88","block_type":"box","text":"oducts, increased purchase activity with respect to these iShares ETFs and","page_number":331,"box":{"x":442,"y":381,"width":510,"height":13}},{"id":"162d7d46-66c2-49da-a1bb-25a108248617","block_type":"box","text":"increased assets under management for BlackRock.","page_number":331,"box":{"x":45,"y":397,"width":354,"height":12}},{"id":"c268c061-32d2-4627-8376-7a2cbfb77d3c","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other distribution by","page_number":331,"box":{"x":45,"y":420,"width":862,"height":13}},{"id":"7bd98403-f5e5-4671-b5f3-0d9f094dded4","block_type":"box","text":"BlackRock and may also enter into transactions with other clients of BlackRock where such other clients have interests adverse to","page_number":331,"box":{"x":46,"y":435,"width":899,"height":13}},{"id":"54a640c0-a6b2-4223-9049-7aad8a851573","block_type":"box","text":"those of the Fund. At times, these activities may cause business units or entities within BlackRock to give advice to clients that may","page_number":331,"box":{"x":45,"y":451,"width":907,"height":13}},{"id":"96be9bc1-410b-4f65-afc3-404658878328","block_type":"box","text":"cause these clients to take actions adverse to the interests of the Fund. To the extent such transactions are permitted, a Fund will","page_number":331,"box":{"x":45,"y":466,"width":889,"height":13}},{"id":"3b5d5371-a283-41e3-b666-57755ee90d26","block_type":"box","text":"deal with BlackRock on an arms-length basis.","page_number":331,"box":{"x":46,"y":482,"width":316,"height":13}},{"id":"dadf7d5a-6408-4ebb-a94a-84d99cbea879","block_type":"box","text":"To the extent authorized by applicable law, BlackRock may act a","page_number":331,"box":{"x":45,"y":505,"width":453,"height":13}},{"id":"a4fa3487-8b4c-463c-b772-45a8a194a9f1","block_type":"box","text":"s broker, dealer, agent, lender or adviser or in other commercial","page_number":331,"box":{"x":499,"y":505,"width":442,"height":13}},{"id":"a1b461ed-dd87-4a24-8449-b42aede88509","block_type":"box","text":"capacities for a Fund. It is anticipated that the commissions, mar","page_number":331,"box":{"x":45,"y":521,"width":448,"height":12}},{"id":"dab1c507-51ac-4382-8a56-96a3eb671934","block_type":"box","text":"k-ups, mark-downs, financial advisory fees, underwriting and","page_number":331,"box":{"x":493,"y":521,"width":427,"height":12}},{"id":"1d4cb3f5-4ee7-4596-a9a8-c599b8f620e6","block_type":"box","text":"placement fees, sales fees, financing and commitment fees, brok","page_number":331,"box":{"x":45,"y":536,"width":440,"height":13}},{"id":"437aae83-e58a-4c85-90f1-3a40763984ae","block_type":"box","text":"erage fees, other fees, compensation or profits, rates, terms and","page_number":331,"box":{"x":486,"y":536,"width":437,"height":13}},{"id":"eee3c267-435a-42cb-8914-4a4511c8b1a9","block_type":"box","text":"conditions charged by BlackRock will be in its view commercially reasonable, although BlackRock, including its sales personnel,","page_number":331,"box":{"x":45,"y":552,"width":891,"height":12}},{"id":"291017e1-b01c-4cd9-944f-ca4a81f03136","block_type":"box","text":"will have an interest in obtaining fees and other amounts that are favorable to BlackRock and such sales personnel, which may","page_number":331,"box":{"x":45,"y":567,"width":880,"height":13}},{"id":"386f136e-18ed-4c52-a104-df161193f366","block_type":"box","text":"have an adverse effect on the Funds. Index based funds may use an index provider that is affiliated with another service provider","page_number":331,"box":{"x":45,"y":583,"width":891,"height":12}},{"id":"04e43c35-71eb-4317-a1b1-04ae20d9bbc9","block_type":"box","text":"of the Fund or BlackRock that acts as a broker, dealer, agent, le","page_number":331,"box":{"x":46,"y":598,"width":442,"height":13}},{"id":"cb66e0d4-d3ae-413b-82ae-02c9b358cd3c","block_type":"box","text":"nder or in other commercial capacities for a Fund or BlackRock.","page_number":331,"box":{"x":488,"y":598,"width":447,"height":13}},{"id":"1fed359f-4a55-4b09-9973-31bc5dac6d15","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and other amounts","page_number":331,"box":{"x":46,"y":621,"width":882,"height":13}},{"id":"013fbf9b-0144-45a3-9be4-366b8e2d562b","block_type":"box","text":"that they receive in connection with their service to the Funds as broker, dealer, agent, lender, adviser or in other commercial","page_number":331,"box":{"x":45,"y":637,"width":866,"height":13}},{"id":"7ed002c4-91df-45a3-968a-935fcfb25a83","block_type":"box","text":"capacities. No accounting to the Funds or their shareholders will be required, and no fees or other compensation payable by the","page_number":331,"box":{"x":45,"y":652,"width":887,"height":13}},{"id":"3710bd02-745c-464e-9aaf-1732f90a2465","block_type":"box","text":"Funds or their shareholders will be reduced by reason of receipt by BlackRock of any such fees or other amounts.","page_number":331,"box":{"x":45,"y":668,"width":786,"height":13}},{"id":"b431d7da-6e87-46c4-8b37-3e01ed5093c9","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds, BlackRock may","page_number":331,"box":{"x":45,"y":691,"width":898,"height":13}},{"id":"311b97f0-8cd5-47c8-b72d-295fe78afbce","block_type":"box","text":"take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":331,"box":{"x":45,"y":707,"width":627,"height":12}},{"id":"b65535b3-8259-486e-b3d5-286b23de2ba9","block_type":"box","text":"A Fund will be required to establish business relationships with its counterparties based on the Fund’s own credit standing.","page_number":331,"box":{"x":45,"y":730,"width":851,"height":13}},{"id":"230a7657-258f-41bf-baa1-c1280ad14d5b","block_type":"box","text":"BlackRock will not have any obligation to allow its credit to be","page_number":331,"box":{"x":46,"y":745,"width":438,"height":13}},{"id":"9a0a5d14-4cac-4e4a-8d45-edcd60a88b75","block_type":"box","text":"used in connection with a Fund’s establishment of its business","page_number":331,"box":{"x":489,"y":745,"width":428,"height":10}},{"id":"f8c70008-06e3-478e-bb65-c7f2c03b81a3","block_type":"box","text":"relationships, nor is it expected that the Fund’s counterpartie","page_number":331,"box":{"x":45,"y":761,"width":422,"height":13}},{"id":"968dc71b-70c5-4615-8f30-2ca1c7a0c3f2","block_type":"box","text":"s will rely on the credit of BlackRock in evaluating the Fund’s","page_number":331,"box":{"x":468,"y":761,"width":426,"height":13}},{"id":"b0a58823-da52-40e9-a897-471e33a10224","block_type":"box","text":"creditworthiness.","page_number":331,"box":{"x":45,"y":776,"width":118,"height":11}},{"id":"b9096fbb-a91c-466a-995e-545e0f0adf5e","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock In","page_number":331,"box":{"x":46,"y":800,"width":474,"height":13}},{"id":"e17caa01-9dea-41a5-bb48-e21f5959c582","block_type":"box","text":"stitutional Trust Company, N.A. (“BTC”), as applicable, each","page_number":331,"box":{"x":521,"y":800,"width":432,"height":13}},{"id":"c8aaed2c-d5d2-4bc3-bbdd-a9122b42f714","block_type":"box","text":"an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and receives a share of securities","page_number":331,"box":{"x":46,"y":815,"width":879,"height":13}},{"id":"c555f213-332a-4adf-8cb2-0e94f5f96ad2","block_type":"box","text":"lending revenues from, the Funds. BlackRock will also receive compensation for managing the reinvestment of the cash collateral","page_number":331,"box":{"x":45,"y":831,"width":895,"height":13}},{"id":"80ff271d-2f4f-4485-991c-ad88082b8452","block_type":"box","text":"from securities lending. There are potential conflicts of interests in managing a securities lending program, including but not","page_number":331,"box":{"x":45,"y":846,"width":859,"height":13}},{"id":"b5c223ec-73b0-4037-b54a-63ca0e97b550","block_type":"box","text":"limited to: (i) BlackRock as securities lending agent may have an incentive to, among other things, increase or decrease the amount","page_number":331,"box":{"x":45,"y":862,"width":906,"height":13}},{"id":"63fa42a1-7882-4a52-8530-06af8ebfc723","block_type":"box","text":"of securities on loan or to lend particular securities in order to gen","page_number":331,"box":{"x":46,"y":877,"width":457,"height":13}},{"id":"040a602e-a888-4a8b-a1d6-6f2845e56b32","block_type":"box","text":"erate additional risk-adjusted revenue for BlackRock and its","page_number":331,"box":{"x":504,"y":877,"width":415,"height":13}},{"id":"bd0f4d09-5b0d-46cb-b05b-9b663abf78ab","block_type":"box","text":"II-27","page_number":331,"box":{"x":482,"y":917,"width":35,"height":9}},{"id":"decfd26d-6604-462f-b1ab-f2b5506db821","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":331,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"97a16a7b-cf23-4886-b2f3-3788eca16c4b","block_type":"box","text":"affiliates; and (ii) BlackRock as securities lending agent may have an incentive to allocate loans to clients that would provide more","page_number":332,"box":{"x":46,"y":79,"width":900,"height":13}},{"id":"2e8ffbf2-ea93-438f-b74b-d21ad44626ee","block_type":"box","text":"revenue to BlackRock. As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":332,"box":{"x":45,"y":94,"width":873,"height":13}},{"id":"0e460a73-9b0d-450e-a661-38f4e6417b7e","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":332,"box":{"x":45,"y":110,"width":653,"height":13}},{"id":"1d09c7c4-fb67-451b-b26b-2de1ef2857e1","block_type":"box","text":"As part of its securities lending program, BlackRock indemn","page_number":332,"box":{"x":45,"y":135,"width":418,"height":13}},{"id":"60166c2d-36b1-4db8-b7c1-7caa168d6b9e","block_type":"box","text":"ifies the Funds and certain other clients and/or funds against a","page_number":332,"box":{"x":464,"y":135,"width":429,"height":13}},{"id":"fabba52f-b1ff-4890-ad99-f2782c81965c","block_type":"box","text":"shortfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the potential dollar exposure of","page_number":332,"box":{"x":46,"y":151,"width":884,"height":13}},{"id":"ef9668df-72c0-459f-9133-084d2c8da247","block_type":"box","text":"collateral shortfall resulting from a borrower default (“shortfall ri","page_number":332,"box":{"x":45,"y":166,"width":456,"height":13}},{"id":"b5505fd7-bfe4-4e39-9248-d7310c1f4a2c","block_type":"box","text":"sk”) in the securities lending program. BlackRock establishes","page_number":332,"box":{"x":501,"y":166,"width":422,"height":13}},{"id":"6d815bcb-622b-4a31-9a40-7a44935edb76","block_type":"box","text":"program-wide borrower limits (“credit limits","page_number":332,"box":{"x":45,"y":182,"width":312,"height":13}},{"id":"93a26d7b-0ec0-4f48-8991-3d0eb0c8dd33","block_type":"box","text":"”) to actively manage borrower-specific credit exposure. 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In add","page_number":333,"box":{"x":46,"y":877,"width":428,"height":13}},{"id":"dad946f0-d838-4c82-baf4-2ec8621638b7","block_type":"box","text":"ition, from time to time, the activities of BlackRock may limit a","page_number":333,"box":{"x":475,"y":877,"width":439,"height":13}},{"id":"7764592d-2c54-42ba-9b73-44b4176062d9","block_type":"box","text":"II-29","page_number":333,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"157a3756-441f-4e60-bc22-4bed8d1e1259","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":333,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ba811b7f-ff6b-405e-ba98-33e5919844be","block_type":"box","text":"Fund’s flexibility in purchases and sales of securities. As indicate","page_number":334,"box":{"x":45,"y":79,"width":445,"height":13}},{"id":"fd82ef1a-92b1-45cf-b821-80d3cf4493ac","block_type":"box","text":"d below, BlackRock may engage in transactions with companies","page_number":334,"box":{"x":491,"y":79,"width":446,"height":13}},{"id":"a9c2c8a7-1a49-4711-9902-8dfc17e4ec24","block_type":"box","text":"in which BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":334,"box":{"x":45,"y":94,"width":589,"height":10}},{"id":"dcc1e38d-4627-440b-b7ab-55ad10052402","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the Funds. 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While BlackRock will generally communicate its valuation information or","page_number":334,"box":{"x":46,"y":296,"width":808,"height":13}},{"id":"49de0f2c-64d2-4472-8202-889bde463b7c","block_type":"box","text":"determinations to a Fund’s pricing vendors and/or fund accountan","page_number":334,"box":{"x":46,"y":311,"width":460,"height":13}},{"id":"6ce1b499-6028-42ad-ad20-f9c4ee6792ba","block_type":"box","text":"ts, there may be instances where the Fund’s pricing vendors or","page_number":334,"box":{"x":506,"y":311,"width":431,"height":13}},{"id":"beb442ea-1053-4db4-8958-d40ea1e5a6b8","block_type":"box","text":"fund accountants assign a different valuation to a security or other investment than the valuation for such security or investment","page_number":334,"box":{"x":45,"y":327,"width":890,"height":13}},{"id":"c788475b-29bf-48c3-a154-e63656e7572f","block_type":"box","text":"determined or recommended by BlackRock.","page_number":334,"box":{"x":46,"y":342,"width":304,"height":13}},{"id":"67a3be75-eba4-4cea-b581-d8dbca968465","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their own accounts and","page_number":334,"box":{"x":46,"y":366,"width":889,"height":12}},{"id":"8fdde28d-fc8e-46c0-bd9c-1a87341a4f54","block_type":"box","text":"may have conflicts of interest with respect to investments made on beh","page_number":334,"box":{"x":45,"y":381,"width":490,"height":13}},{"id":"f5c08e16-9142-4a8e-8031-1dce47146994","block_type":"box","text":"alf of a Fund. 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These transactions would be effected in","page_number":334,"box":{"x":456,"y":559,"width":408,"height":13}},{"id":"cffa98e8-c64e-4dc7-a882-6b37821542c5","block_type":"box","text":"circumstances in which BlackRock determined that it would be appropriate for the Fund to purchase and another client of","page_number":334,"box":{"x":45,"y":575,"width":851,"height":13}},{"id":"341bf734-ac23-46c3-8b61-708ec9334888","block_type":"box","text":"BlackRock to sell, or the Fund to sell and another client of BlackRock to purchase, the same security or instrument on the same","page_number":334,"box":{"x":46,"y":590,"width":883,"height":13}},{"id":"11ab48f3-6694-4879-8c00-da941c6a3efe","block_type":"box","text":"day. From time to time, the activities of a Fund may be restricted b","page_number":334,"box":{"x":46,"y":606,"width":462,"height":13}},{"id":"c0c0ac13-1e00-4992-8003-0f14ac379ce9","block_type":"box","text":"ecause of regulatory requirements applicable to BlackRock and/","page_number":334,"box":{"x":509,"y":606,"width":443,"height":13}},{"id":"0b8af534-894a-4615-ba40-26ccceadfd72","block_type":"box","text":"or BlackRock’s internal policies designed to comply with, limit th","page_number":334,"box":{"x":46,"y":621,"width":453,"height":13}},{"id":"73a5e859-33af-407f-9ae7-7a1bf6dff25b","block_type":"box","text":"e applicability of, or that otherwise relate to such requirements.","page_number":334,"box":{"x":499,"y":621,"width":439,"height":13}},{"id":"571e7b70-cb29-4447-968d-012b10ba3fd8","block_type":"box","text":"A client not advised by BlackRock would not be subject to some of","page_number":334,"box":{"x":45,"y":637,"width":467,"height":13}},{"id":"b5085f53-6036-4810-afeb-3b731925cfc6","block_type":"box","text":"those considerations. There may be periods when BlackRock","page_number":334,"box":{"x":516,"y":637,"width":422,"height":13}},{"id":"44af9b7c-c6de-4e42-b1a1-96e36bad8622","block_type":"box","text":"may not initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":334,"box":{"x":45,"y":652,"width":843,"height":13}},{"id":"245c8016-5ae8-4d58-b872-a90646de24b4","block_type":"box","text":"securities or instruments issued by or related to companies for wh","page_number":334,"box":{"x":46,"y":668,"width":454,"height":13}},{"id":"1e0512e0-2116-47d9-bc90-ad6c870ae09f","block_type":"box","text":"ich BlackRock is performing advisory or other services or has","page_number":334,"box":{"x":501,"y":668,"width":425,"height":13}},{"id":"0e349296-b454-405c-8ec1-2b4898acbaf3","block_type":"box","text":"proprietary positions. 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Each Fund attempts to maintain a NAV per share of $1.00. Share purchase orders are effective on the date Federal Funds","page_number":337,"box":{"x":46,"y":258,"width":907,"height":13}},{"id":"3bfa49e4-dd0b-425c-be12-a095f02378b6","block_type":"box","text":"become available to a Fund. Generally, if Federal Funds are available to a Fund prior to the determination of NAV on any","page_number":337,"box":{"x":46,"y":274,"width":847,"height":13}},{"id":"f6b8de3d-f662-40d4-bec1-9a11e429feb7","block_type":"box","text":"business day, the order will be effective on that day. Except as o","page_number":337,"box":{"x":46,"y":290,"width":442,"height":12}},{"id":"311bac71-e09b-4f7e-864c-6de885281d72","block_type":"box","text":"therwise specified in a Fund’s Prospectus, shares purchased will","page_number":337,"box":{"x":489,"y":290,"width":439,"height":12}},{"id":"56f4847a-74a9-4d7b-b0b8-ad3574e2770a","block_type":"box","text":"begin accruing dividends on the day following the date of purchase. 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Such","page_number":337,"box":{"x":498,"y":526,"width":450,"height":13}},{"id":"4ade6964-f6bd-4bd5-989e-f12666aa83f2","block_type":"box","text":"Authorized Persons are authorized to designate other interm","page_number":337,"box":{"x":45,"y":542,"width":418,"height":13}},{"id":"4c8743eb-a16f-4cf4-ad76-767fa7f943d1","block_type":"box","text":"ediaries to receive purchase and redemption orders on the Fund’s","page_number":337,"box":{"x":464,"y":542,"width":451,"height":13}},{"id":"e81a8c37-c96f-4276-9b35-d018b0a94286","block_type":"box","text":"behalf, and the Fund will be deemed to have received a purchase or red","page_number":337,"box":{"x":46,"y":557,"width":492,"height":13}},{"id":"eb58085e-ba98-436b-a94d-ed79478fe7b9","block_type":"box","text":"emption order when an Authorized Person or, if applicable,","page_number":337,"box":{"x":539,"y":557,"width":413,"height":13}},{"id":"0c3395d9-49b5-42db-8750-fd0c3e7b6790","block_type":"box","text":"such Authorized Person’s authorized designee, receives the ord","page_number":337,"box":{"x":46,"y":573,"width":432,"height":13}},{"id":"0f7dbef3-c077-45e9-ba4d-7a6543c451f9","block_type":"box","text":"er. Such customer orders will be priced at the Fund’s NAV next","page_number":337,"box":{"x":479,"y":573,"width":440,"height":13}},{"id":"84daaf44-c87e-47d3-8768-3dbd509482fc","block_type":"box","text":"computed after they are received by an Authorized Person or such","page_number":337,"box":{"x":45,"y":588,"width":458,"height":13}},{"id":"e38f7564-f86c-4630-8021-8c434f8722f7","block_type":"box","text":"Authorized Person’s authorized designee. Financial institutions","page_number":337,"box":{"x":508,"y":588,"width":434,"height":13}},{"id":"cfbdded0-bb71-4dbc-b13d-53ce93c53290","block_type":"box","text":"may include retirement plan service providers who aggregat","page_number":337,"box":{"x":45,"y":604,"width":414,"height":13}},{"id":"0f17471f-c712-4e75-98fa-372e2f84576d","block_type":"box","text":"e purchase and redemption instructions received from numerous","page_number":337,"box":{"x":460,"y":604,"width":445,"height":13}},{"id":"a2656a30-bf22-4bda-8a9e-b08501d56160","block_type":"box","text":"retirement plans or plan participants.","page_number":337,"box":{"x":45,"y":619,"width":257,"height":13}},{"id":"45cb9c43-9751-4210-a8a5-a042cb0777aa","block_type":"box","text":"Investor A and Investor C Shares","page_number":337,"box":{"x":45,"y":650,"width":241,"height":10}},{"id":"c8c83fc8-8445-42db-9309-0783f977217e","block_type":"box","text":"Purchase of Investor A Shares.","page_number":337,"box":{"x":45,"y":676,"width":210,"height":10}},{"id":"c5ff010c-459a-4e2c-bd00-c153c8e4566c","block_type":"box","text":"The minimum investment for the initial purchase of shares is $1,000. There is no investment","page_number":337,"box":{"x":261,"y":675,"width":640,"height":13}},{"id":"6fc962ce-9f2e-41fc-a3c1-af148cfc4673","block_type":"box","text":"minimum for employer-sponsored retirement plans (not includi","page_number":337,"box":{"x":45,"y":691,"width":439,"height":13}},{"id":"28a40fca-2bc3-4dd5-90f9-de6fecc9c508","block_type":"box","text":"ng SEP IRAs, SIMPLE IRAs or SARSEPs). There is no investment","page_number":337,"box":{"x":485,"y":691,"width":455,"height":13}},{"id":"ce415509-3f30-4c0e-b1b2-39c3b198de69","block_type":"box","text":"minimum for certain fee-based programs. There is a $50 minimu","page_number":337,"box":{"x":45,"y":706,"width":450,"height":13}},{"id":"bd479932-d7a0-46a6-8c7e-875a77e4986c","block_type":"box","text":"m for subsequent investments (with the exception of certain","page_number":337,"box":{"x":496,"y":707,"width":414,"height":12}},{"id":"68727967-9552-470b-ab40-96713549be5d","block_type":"box","text":"employer-sponsored retirement plans which may have a lower mini","page_number":337,"box":{"x":46,"y":722,"width":466,"height":13}},{"id":"d52443f7-4b2a-4566-b108-94412c4afb91","block_type":"box","text":"mum). Purchases through the Automatic Investment Plan are","page_number":337,"box":{"x":513,"y":722,"width":423,"height":13}},{"id":"4879f713-f68d-4cec-8ee3-e3ef0301db26","block_type":"box","text":"subject to a lower initial purchase minimum. In addition, the m","page_number":337,"box":{"x":46,"y":738,"width":439,"height":12}},{"id":"b0102116-ca66-45ed-9d98-8915fd17d012","block_type":"box","text":"inimum initial investment for employees of the Fund, the Fund’s","page_number":337,"box":{"x":485,"y":738,"width":444,"height":12}},{"id":"c468e18c-aefb-418c-ac89-053293cd8b4d","block_type":"box","text":"Manager, sub-adviser, BRIL or transfer agent or employees of their affiliates is $100, unless payment is made through a payroll","page_number":337,"box":{"x":45,"y":753,"width":883,"height":13}},{"id":"f4d98901-df50-4943-9e53-a5dccf763db3","block_type":"box","text":"deduction program in which case the minimum investment is $25.","page_number":337,"box":{"x":46,"y":768,"width":457,"height":13}},{"id":"0ddecd80-2a57-49f9-b6e7-9c03b841f9fb","block_type":"box","text":"Purchases of Investor A Shares Through Brokers.","page_number":337,"box":{"x":45,"y":792,"width":342,"height":12}},{"id":"75e47006-3972-4299-890f-ec899b89464d","block_type":"box","text":"It is the responsibility of brokers to transmit purchase orders and payment on a","page_number":337,"box":{"x":393,"y":792,"width":549,"height":12}},{"id":"2af2d5a8-23e8-49bc-b6d3-4519e0a7dc82","block_type":"box","text":"timely basis. Generally, if payment is not received within the period described in the Prospectus, the order will be canceled, notice","page_number":337,"box":{"x":45,"y":807,"width":897,"height":13}},{"id":"df637345-7bc5-4d0c-9856-9cfaa2266e2a","block_type":"box","text":"thereof will be given, and the broker and its customers will be responsible for any loss to the Fund or its shareholders. Orders of","page_number":337,"box":{"x":45,"y":823,"width":889,"height":12}},{"id":"c89df29b-563d-4b1e-b950-dc481c985212","block_type":"box","text":"less than $500 may be mailed by a broker to the transfer agent.","page_number":337,"box":{"x":45,"y":838,"width":439,"height":13}},{"id":"3cad2ab4-00a5-4c53-9748-ed6a15da8bb4","block_type":"box","text":"Other Purchase Information.","page_number":337,"box":{"x":46,"y":861,"width":199,"height":10}},{"id":"1f08dfa8-2bb0-4be4-87ee-2af677cbbf5e","block_type":"box","text":"Shares of the Fund are sold on a continuous basis by BRIL as distributor. BRIL maintains its","page_number":337,"box":{"x":251,"y":861,"width":640,"height":13}},{"id":"1c6832c1-845a-40fe-a49e-44ebf606299a","block_type":"box","text":"principal offices at 50 Hudson Yards, New York, New York 10001. Purchases may be effected on weekdays on which the NYSE","page_number":337,"box":{"x":45,"y":877,"width":898,"height":13}},{"id":"22045c9b-95d8-4553-bbf2-0a429462125f","block_type":"box","text":"II-33","page_number":337,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"7939d2e0-c074-443f-907c-fbbb561ad654","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":337,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0c05e94a-b044-44fd-9c5e-60d735144683","block_type":"box","text":"is open for business (a “Business Day”). Payment for orders of Investor A Shares which are not received or accepted will be","page_number":338,"box":{"x":45,"y":79,"width":855,"height":13}},{"id":"99027673-0431-4a4d-9cf5-720438e3eca8","block_type":"box","text":"returned after prompt inquiry. The issuance of shares is recorded on the books of the Fund. No certificates will be issued for","page_number":338,"box":{"x":45,"y":94,"width":862,"height":13}},{"id":"4cdc7854-7287-4172-bdf7-95be2b7ddb58","block_type":"box","text":"shares. Payments for Investor A Shares of the Fund may, in the di","page_number":338,"box":{"x":46,"y":110,"width":453,"height":13}},{"id":"7026e760-330c-4a4b-b2f6-a678d6958d5b","block_type":"box","text":"scretion of the Fund’s Manager, be made in the form of securities","page_number":338,"box":{"x":500,"y":110,"width":451,"height":13}},{"id":"2bacc98f-0aae-4eef-ae43-f492ef1c7011","block_type":"box","text":"that are permissible investments for the Fund. The Fund reserves the right to reject any purchase order, to modify or waive the","page_number":338,"box":{"x":45,"y":125,"width":876,"height":13}},{"id":"3447696f-6c44-4b5a-b988-89a80d55fc90","block_type":"box","text":"minimum initial or subsequent investment requirement and to suspend and resume the sale of any share class of the Fund at any","page_number":338,"box":{"x":45,"y":141,"width":889,"height":13}},{"id":"7dad3881-c8dc-452b-a68b-9a5eceb47b45","block_type":"box","text":"time.","page_number":338,"box":{"x":45,"y":157,"width":34,"height":9}},{"id":"2f2936cb-680a-4015-a582-fe47a356ffd2","block_type":"box","text":"Exchange Privilege.","page_number":338,"box":{"x":45,"y":180,"width":134,"height":12}},{"id":"7557ece2-ae71-4e27-9f38-4ce276e281ba","block_type":"box","text":"Unless an exemption applies, a front-end sales charg","page_number":338,"box":{"x":185,"y":180,"width":362,"height":12}},{"id":"49e094e9-4984-4496-94f6-606bf2bb04b6","block_type":"box","text":"e will be charged in connection with exchanges of Investor","page_number":338,"box":{"x":548,"y":180,"width":405,"height":12}},{"id":"b4b6da78-6bf8-4618-9a80-35a0821395b0","block_type":"box","text":"A Shares of the Fund for Investor A Shares of another fund advised by BlackRock or its affiliates that imposes such a sales charge.","page_number":338,"box":{"x":45,"y":195,"width":901,"height":13}},{"id":"82defe49-a28f-41dc-a2c2-4b84a2ca3d87","block_type":"box","text":"Exchanges of Investor C Shares of the Fund for Investor C Shares of one of the non-money market portfolios advised by","page_number":338,"box":{"x":45,"y":211,"width":834,"height":12}},{"id":"8f9213f5-cfc5-45ef-a6d8-fe0338911f99","block_type":"box","text":"BlackRock or its affiliates (each a “Non-Money Market Portfolio”) will be exercised at NAV. However, a contingent deferred","page_number":338,"box":{"x":46,"y":226,"width":875,"height":13}},{"id":"54fdcbb6-6371-4b35-9842-4f889168e681","block_type":"box","text":"sales charge (“CDSC”) will be charged in connection with the redemption of the Investor C Shares of the Non-Money Market","page_number":338,"box":{"x":46,"y":242,"width":875,"height":12}},{"id":"e795c8a8-c464-4410-b812-0f057c635461","block_type":"box","text":"Portfolio received in the exchange.","page_number":338,"box":{"x":45,"y":257,"width":238,"height":13}},{"id":"a871a30c-2428-430b-a679-a9238276852b","block_type":"box","text":"A CDSC of 1.00% may apply to certain redemptions of Investor C Shares of Summit Cash Reserves. The Investor C Shares CDSC","page_number":338,"box":{"x":45,"y":280,"width":905,"height":13}},{"id":"2b4f4534-e74c-473c-98c5-ab961345226d","block_type":"box","text":"is only charged upon redemptions of Investor C Shares within one year after you originally acquired the Investor C Shares of the","page_number":338,"box":{"x":45,"y":296,"width":890,"height":13}},{"id":"14ab47a6-e093-4f67-a9be-2e7c0dfcf4bd","block_type":"box","text":"Non-Money Market Portfolio, unless you qualify for a waiver. There is no CDSC charged on redemptions if you have owned your","page_number":338,"box":{"x":45,"y":311,"width":908,"height":13}},{"id":"12f09031-e79a-432b-bcba-321a09f20948","block_type":"box","text":"Investor C Shares for more than one year (as measured from your original purchase of Investor C Shares that you exchanged into","page_number":338,"box":{"x":45,"y":327,"width":897,"height":13}},{"id":"ba1db198-7fbf-4a13-acc4-db23ed0d50b5","block_type":"box","text":"Investor C Shares of Summit Cash Reserves). In determining whether an Investor C Shares CDSC is applicable to a redemption,","page_number":338,"box":{"x":45,"y":342,"width":885,"height":13}},{"id":"76a43662-fcea-4f47-b1cd-c718585c9363","block_type":"box","text":"the calculation will be determined in the manner that results in","page_number":338,"box":{"x":45,"y":358,"width":435,"height":10}},{"id":"93969a66-0296-48bd-ac84-0317fbd00ad6","block_type":"box","text":"the lowest possible rate being charged. The charge will be assessed","page_number":338,"box":{"x":484,"y":358,"width":460,"height":13}},{"id":"cc9a9c3b-b93b-4785-83d0-b945e9e8431f","block_type":"box","text":"on an amount equal to the lesser of the proceeds of redemption or the cost of the shares being redeemed. Accordingly, no CDSC","page_number":338,"box":{"x":46,"y":373,"width":888,"height":13}},{"id":"3a6e16f7-152c-48ea-b161-eaef4dd132dd","block_type":"box","text":"will be imposed on increases in NAV above the initial purchase price of Investor C Shares. In addition, no CDSC will be assessed","page_number":338,"box":{"x":45,"y":389,"width":894,"height":13}},{"id":"fb864f25-291f-4dd7-b676-361a67547ff7","block_type":"box","text":"on Investor C Shares acquired through reinvestment of dividends. It will be assumed that the redemption is first of shares held for","page_number":338,"box":{"x":46,"y":404,"width":897,"height":13}},{"id":"0c177c56-db73-4de8-8a90-749b0c1c05d2","block_type":"box","text":"over one year or shares acquired pursuant to reinvestment of divi","page_number":338,"box":{"x":46,"y":420,"width":451,"height":13}},{"id":"7da8f730-bc83-4c80-a623-09f21c1b8dc6","block_type":"box","text":"dends and then of shares held longest during the one-year period.","page_number":338,"box":{"x":498,"y":420,"width":451,"height":13}},{"id":"dd0d766e-d229-47cd-9ac3-d79da71511b5","block_type":"box","text":"A transfer of shares from a shareholder’s account to another account will be assumed to be made in the same order as a","page_number":338,"box":{"x":45,"y":435,"width":830,"height":10}},{"id":"19273ba3-588b-4247-b54a-3ed8f2b371c0","block_type":"box","text":"redemption.","page_number":338,"box":{"x":45,"y":451,"width":83,"height":13}},{"id":"9b3dcf4f-c1a1-4809-8fc4-e1cbd8e97389","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of the Fund’s SAI for information about amounts","page_number":338,"box":{"x":46,"y":474,"width":902,"height":13}},{"id":"ee492555-bb48-4d8f-8e45-12febaf4fcc8","block_type":"box","text":"paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":338,"box":{"x":45,"y":490,"width":565,"height":12}},{"id":"753a1c22-494a-4437-849e-978327af8686","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares purchased through","page_number":338,"box":{"x":45,"y":513,"width":859,"height":13}},{"id":"a374be93-100a-4ded-8adc-b88082baafd2","block_type":"box","text":"certain employer-sponsored retirement plans and fee-based programs previously approved by certain Funds and rollovers of","page_number":338,"box":{"x":45,"y":528,"width":860,"height":13}},{"id":"c31e8369-1dac-4609-9e2e-935ca171d3f6","block_type":"box","text":"current investments in the Fund through such plans; (2) exchanges pursuant to the exchange privilege described in the Fund’s","page_number":338,"box":{"x":45,"y":544,"width":867,"height":13}},{"id":"dbb95762-0c4f-4e9a-8631-bf2ac6791ea7","block_type":"box","text":"Prospectus; (3) redemptions made in connection with minimum","page_number":338,"box":{"x":45,"y":559,"width":442,"height":13}},{"id":"2cd00106-aac0-4ba4-aec1-c26f5dfa42c8","block_type":"box","text":"required distributions from IRA and 403(b)(7) accounts due to the","page_number":338,"box":{"x":491,"y":559,"width":462,"height":13}},{"id":"3e7e3fa5-039c-48c9-b3da-5f5edae7ec22","block_type":"box","text":"shareholder reaching the applicable age triggering such dist","page_number":338,"box":{"x":46,"y":575,"width":409,"height":13}},{"id":"df35c42c-3ed4-405c-96d2-bf814f0c3d74","block_type":"box","text":"ributions; (4) redemptions made with respect to certain retirement","page_number":338,"box":{"x":455,"y":575,"width":458,"height":13}},{"id":"19146550-df6f-4fa6-bc09-7fc60a951437","block_type":"box","text":"plans sponsored by BlackRock or its affiliates; (5) redemptions","page_number":338,"box":{"x":45,"y":590,"width":435,"height":13}},{"id":"f8ad6cfc-9c6a-434a-b229-1a1ecabaeb0b","block_type":"box","text":"in connection with a shareholder’s death as long as the waiver","page_number":338,"box":{"x":485,"y":590,"width":430,"height":13}},{"id":"3165a605-55cf-4f7b-b655-d63d4a1b5be9","block_type":"box","text":"request is made within one year of death or, if later, reasonably promptly following completion of probate (including in","page_number":338,"box":{"x":45,"y":606,"width":830,"height":13}},{"id":"7dc50352-2225-4a35-9d5e-4f12d61f5af6","block_type":"box","text":"connection with the distribution of account assets to a benefic","page_number":338,"box":{"x":45,"y":621,"width":429,"height":10}},{"id":"b4e23b7a-d555-405c-8f2f-28bb7d1fdf93","block_type":"box","text":"iary of the decedent) or disability (as defined in the Code)","page_number":338,"box":{"x":475,"y":621,"width":397,"height":13}},{"id":"1d1cfde8-6b4f-4363-99a3-6f8bd8ce1b1e","block_type":"box","text":"subsequent to the purchase of Investor C Shares; (6) withdrawals resulting from shareholder disability (as defined in the Code) as","page_number":338,"box":{"x":46,"y":637,"width":895,"height":13}},{"id":"a16f48bd-95ee-4490-8361-84a2a3a6b70d","block_type":"box","text":"long as the disability arose subsequent to the purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts","page_number":338,"box":{"x":45,"y":652,"width":899,"height":13}},{"id":"083676f6-eb27-40e7-8006-a5048f1fee44","block_type":"box","text":"with low balances as described in “Redemption of Shares” below;","page_number":338,"box":{"x":45,"y":668,"width":458,"height":13}},{"id":"85e8221d-9426-44c4-88e3-578cbeea2e32","block_type":"box","text":"(8) redemptions made pursuant to a systematic withdrawal","page_number":338,"box":{"x":509,"y":668,"width":409,"height":13}},{"id":"6a68063f-7e9f-4e33-9983-02ced2abbd9d","block_type":"box","text":"plan, subject to the limitations set forth under “Systematic Withdr","page_number":338,"box":{"x":45,"y":683,"width":459,"height":13}},{"id":"a2fafe6e-9b26-4e9b-a3ee-9fc428581d9e","block_type":"box","text":"awal Plan” below; (9) redemptions related to the payment of","page_number":338,"box":{"x":505,"y":683,"width":422,"height":13}},{"id":"c74e6761-6cea-4079-817b-4a637dcc45d6","block_type":"box","text":"BNY Mellon Investment Servicing Trust Company custodial IRA","page_number":338,"box":{"x":46,"y":699,"width":452,"height":13}},{"id":"d30aaa80-3ac2-4fe3-b003-b1194184b85c","block_type":"box","text":"fees; and (10) redemptions when a shareholder can demonstrate","page_number":338,"box":{"x":503,"y":699,"width":443,"height":13}},{"id":"87523b1a-ad14-489f-80f7-0df916742215","block_type":"box","text":"hardship, in the absolute discretion of the Fund. In addition, no CDSC is charged on Investor C Shares acquired through the","page_number":338,"box":{"x":45,"y":714,"width":862,"height":13}},{"id":"ca77c1b7-24c1-4398-8666-8838fc41aeed","block_type":"box","text":"reinvestment of dividends or distributions.","page_number":338,"box":{"x":45,"y":730,"width":293,"height":10}},{"id":"c000815d-76fa-426b-9270-fa771c2f51d2","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be","page_number":338,"box":{"x":46,"y":753,"width":467,"height":13}},{"id":"d58601fe-77e7-4994-a0df-00fd0c0e9dc3","block_type":"box","text":"available to customers of certain financial intermediaries, as","page_number":338,"box":{"x":518,"y":753,"width":414,"height":13}},{"id":"572e8f8c-d7e0-4122-b611-941a7d33a721","block_type":"box","text":"described under “Intermediary-Defined Sales Charge Waiver Polic","page_number":338,"box":{"x":46,"y":769,"width":458,"height":13}},{"id":"e2017de3-79bc-4194-98ba-599cfa787b5b","block_type":"box","text":"ies” in the Fund’s Prospectus. Please speak to your financial","page_number":338,"box":{"x":505,"y":769,"width":413,"height":13}},{"id":"2f6c3a6f-2a3f-4f35-813c-2abd633241a0","block_type":"box","text":"intermediary for more information.","page_number":338,"box":{"x":45,"y":784,"width":245,"height":13}},{"id":"393276a6-85cb-4331-a715-08b16c9a0eae","block_type":"box","text":"A shareholder wishing to make an exchange may do so by sending a written request to the Fund at the following address:","page_number":338,"box":{"x":45,"y":807,"width":843,"height":13}},{"id":"45ebcda3-b6c8-476a-8f1f-1d11dc27f819","block_type":"box","text":"BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are automatically provided with telephone","page_number":338,"box":{"x":46,"y":823,"width":873,"height":13}},{"id":"cec28811-f8f9-4fbb-8ef9-3c7c643d6871","block_type":"box","text":"exchange privileges when opening an account, unless they indicate on the Application that they do not wish to use this privilege.","page_number":338,"box":{"x":46,"y":838,"width":888,"height":13}},{"id":"f009f24c-a8c5-4b8f-98d8-65b3cda575bd","block_type":"box","text":"To add this feature to an existing account that previously did not provide this option, a request must be made in writing or by","page_number":338,"box":{"x":45,"y":854,"width":875,"height":13}},{"id":"ade108d6-c169-4420-a405-f7f299611c81","block_type":"box","text":"telephone. Once this election has been made, the sharehol","page_number":338,"box":{"x":45,"y":869,"width":400,"height":13}},{"id":"1a01a3da-c457-4b6c-ac98-c095f2d6163f","block_type":"box","text":"der may simply contact the Fund by telephone at (800) 441-7762 to","page_number":338,"box":{"x":446,"y":869,"width":472,"height":13}},{"id":"9bc1d61d-cf8f-4fba-aff6-f65a6dd8ea7a","block_type":"box","text":"II-34","page_number":338,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"fc1967b3-6946-4474-93dd-b8c27f2b61d6","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":338,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"44d477ef-92aa-4a0b-a052-165ca5d2ada9","block_type":"box","text":"request the exchange. During periods of substantial economic or market change, telephone exchanges may be difficult to complete","page_number":339,"box":{"x":45,"y":79,"width":904,"height":13}},{"id":"1732db03-f793-4732-abf1-fa5b639150b7","block_type":"box","text":"and shareholders may have to submit exchange requests in writing.","page_number":339,"box":{"x":46,"y":94,"width":464,"height":13}},{"id":"6272dd58-561d-446d-897d-577ed56db467","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being acquired, a new","page_number":339,"box":{"x":45,"y":118,"width":887,"height":12}},{"id":"0b6c01eb-a7a4-4507-96b2-39bb7a0366f9","block_type":"box","text":"account will be established with the same registration, dividend and capital gain options and broker of record as the account from","page_number":339,"box":{"x":46,"y":133,"width":901,"height":13}},{"id":"1c378732-a610-430b-878d-5a45207d17ec","block_type":"box","text":"which shares are exchanged, unless otherwise specified in writing b","page_number":339,"box":{"x":45,"y":149,"width":465,"height":12}},{"id":"57864667-d194-4db3-9a6b-c899f370db34","block_type":"box","text":"y the shareholder with all signatures guaranteed by an “eligible","page_number":339,"box":{"x":511,"y":149,"width":437,"height":12}},{"id":"38792fbb-738c-44bb-a74f-eea5a3292f07","block_type":"box","text":"guarantor institution” as defined in Rule 17Ad-15 under the Exchange Act. In order to participate in the Automatic Investment","page_number":339,"box":{"x":45,"y":164,"width":884,"height":13}},{"id":"19bf3217-d015-47d9-a5df-1c3dc361b345","block_type":"box","text":"Program or establish a Systematic Withdrawal Plan for the new account, however, an exchanging shareholder must file a specific","page_number":339,"box":{"x":45,"y":180,"width":895,"height":12}},{"id":"25ed8e17-7d4a-4c21-bae5-38862318b542","block_type":"box","text":"written request.","page_number":339,"box":{"x":45,"y":196,"width":108,"height":12}},{"id":"cd503be0-323f-44d1-93fe-8432d91300e7","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and must be legally","page_number":339,"box":{"x":45,"y":218,"width":875,"height":13}},{"id":"98a12f65-0a6e-465e-b23c-84fa24d6f629","block_type":"box","text":"available for sale in the state of the investor’s residence. For Fed","page_number":339,"box":{"x":46,"y":234,"width":441,"height":10}},{"id":"bdd1ea70-7c63-4251-91d3-b0f9f3f55a16","block_type":"box","text":"eral income tax purposes, a share exchange is a taxable event and,","page_number":339,"box":{"x":488,"y":234,"width":458,"height":13}},{"id":"dde89c4c-61eb-404b-ae1c-4d9f71c83c95","block_type":"box","text":"accordingly, a capital gain or loss may be realized. Before making an exchange request, shareholders should consult a tax or other","page_number":339,"box":{"x":46,"y":249,"width":900,"height":13}},{"id":"c0c7669e-747d-4b72-9a42-b4a855c6f6cc","block_type":"box","text":"financial adviser and should consider the investment objective, policies and restrictions of the investment portfolio into which the","page_number":339,"box":{"x":45,"y":265,"width":895,"height":13}},{"id":"ac2b7a76-33fa-4389-9c39-5a69b4a5e716","block_type":"box","text":"shareholder is making an exchange. Brokers may charge a fee for handling exchanges.","page_number":339,"box":{"x":46,"y":280,"width":595,"height":13}},{"id":"a9343c27-b4e3-486a-9ab7-3a632f1be4d4","block_type":"box","text":"The Fund reserves the right to suspend, modify or terminate t","page_number":339,"box":{"x":45,"y":304,"width":426,"height":12}},{"id":"601dde9b-0df8-4217-ab94-df642253ac3f","block_type":"box","text":"he exchange privilege at any time. Notice will be given to","page_number":339,"box":{"x":472,"y":304,"width":395,"height":12}},{"id":"d0cebbe8-86a6-41ac-b740-7e20cd59469e","block_type":"box","text":"shareholders of any material modification or termination ex","page_number":339,"box":{"x":46,"y":319,"width":416,"height":13}},{"id":"65606e16-a5d3-47c3-a5cb-c40ff7c9ab69","block_type":"box","text":"cept where notice is not required. The Fund reserves the right to reject","page_number":339,"box":{"x":462,"y":319,"width":485,"height":13}},{"id":"846e632d-3d40-4bcc-996b-9338eee0a474","block_type":"box","text":"any telephone exchange request. Telephone exchanges may be subject to limitations as to amount or frequency, and to other","page_number":339,"box":{"x":46,"y":335,"width":863,"height":12}},{"id":"0d44173c-06be-48ce-9535-0b610cb0effe","block_type":"box","text":"restrictions that may be established from time to time to ensure that exchanges do not operate to the disadvantage of any portfolio","page_number":339,"box":{"x":45,"y":350,"width":905,"height":13}},{"id":"bdf62c5c-f8cc-497f-8b4d-c58601ae9130","block_type":"box","text":"or its shareholders. The Fund, the Administrator and BRIL will employ reasonable procedures to confirm that instructions","page_number":339,"box":{"x":46,"y":366,"width":848,"height":12}},{"id":"a33105bf-5001-4299-b169-73d09d9cb7c5","block_type":"box","text":"communicated by telephone are genuine. The Fund, the Trust, t","page_number":339,"box":{"x":45,"y":381,"width":442,"height":13}},{"id":"df57b1d4-b631-48ef-901e-3b70abbe4f15","block_type":"box","text":"he Administrator(s) and BRIL will not be liable for any loss,","page_number":339,"box":{"x":487,"y":381,"width":416,"height":13}},{"id":"9fef9ee5-8391-4b72-9b4c-2e4678fc5ac8","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with such","page_number":339,"box":{"x":45,"y":397,"width":846,"height":12}},{"id":"3f395897-3d29-4a43-86d2-b2e873393076","block_type":"box","text":"procedures.","page_number":339,"box":{"x":45,"y":412,"width":80,"height":13}},{"id":"ef707245-ec16-4881-ae54-ab6323006470","block_type":"box","text":"By use of the exchange privilege, the investor authorizes the Fund’s transfer agent to act on telephonic or written exchange","page_number":339,"box":{"x":46,"y":435,"width":848,"height":13}},{"id":"7d351183-124d-42e3-b842-5dae116ebd5b","block_type":"box","text":"instructions from any person representing him- or herself to be the investor and believed by the Fund’s transfer agent to be","page_number":339,"box":{"x":45,"y":451,"width":849,"height":13}},{"id":"c57fbf38-c2ed-410d-b5cb-c0bf29e57574","block_type":"box","text":"genuine. The records of the Fund’s transfer agent pertaining to su","page_number":339,"box":{"x":45,"y":466,"width":454,"height":13}},{"id":"4505a322-6b59-480e-a45a-109197059806","block_type":"box","text":"ch instructions are binding. The exchange privilege may be","page_number":339,"box":{"x":499,"y":466,"width":407,"height":13}},{"id":"61cbf563-921d-40cb-884c-d8d7711d17b5","block_type":"box","text":"modified or terminated at any time upon 60 days’ notice to affected","page_number":339,"box":{"x":45,"y":482,"width":470,"height":13}},{"id":"2b25db67-19e7-4c9a-8c48-2d02544ca932","block_type":"box","text":"shareholders. The exchange privilege is only available in states","page_number":339,"box":{"x":520,"y":482,"width":431,"height":13}},{"id":"29872eb3-6155-461a-b861-60ea39fb8d9f","block_type":"box","text":"where the exchange may legally be made.","page_number":339,"box":{"x":45,"y":497,"width":287,"height":13}},{"id":"869792e9-c586-4e05-8a97-4e506fc87248","block_type":"box","text":"The redemption of shares of one fund and the subsequent investment in another fund generally will be treated as two separate","page_number":339,"box":{"x":45,"y":521,"width":874,"height":12}},{"id":"63f98637-b665-4869-8067-173f1b048ebb","block_type":"box","text":"transactions. Therefore, a front-end sales charge will be impo","page_number":339,"box":{"x":45,"y":536,"width":425,"height":13}},{"id":"e0bbdfcb-f18e-4624-aefc-0a74b9f9187f","block_type":"box","text":"sed (unless an exemption applies) on the purchase of Investor A or","page_number":339,"box":{"x":471,"y":536,"width":460,"height":13}},{"id":"2f4f7786-6bf0-4c33-9bb8-3b8fe655bb58","block_type":"box","text":"Investor A1 Shares of a Non-Money Market Portfolio with the proceeds of a redemption of Investor A Shares of the Fund. In","page_number":339,"box":{"x":45,"y":552,"width":870,"height":12}},{"id":"43b7025f-d252-41d1-83f9-1ea8764237d1","block_type":"box","text":"addition, when Investor C Shares of the Fund are redeemed and the proceeds are used to purchase Investor C Shares of a","page_number":339,"box":{"x":46,"y":567,"width":836,"height":13}},{"id":"c20d1938-adc6-4829-b1d3-29dc9192f246","block_type":"box","text":"Non-Money Market Portfolio, a CDSC will be imposed (unless an exemption applies) when the Investor C Shares of the","page_number":339,"box":{"x":45,"y":583,"width":836,"height":12}},{"id":"3e399fb2-3a01-41ce-beca-c9883899d878","block_type":"box","text":"Non-Money Market Portfolio are redeemed.","page_number":339,"box":{"x":45,"y":598,"width":310,"height":13}},{"id":"c9237d8f-bf3f-4269-aa5a-bf2550840ea6","block_type":"box","text":"The Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020, Investor C Shares","page_number":339,"box":{"x":45,"y":621,"width":879,"height":13}},{"id":"b0f21341-973e-4adc-8450-020c54c3a1f1","block_type":"box","text":"held for approximately eight years will be converted into Investor A Shares, as set forth in the Fund’s Prospectus. In addition,","page_number":339,"box":{"x":45,"y":637,"width":868,"height":13}},{"id":"01e79822-b222-4227-8b28-38654642d37f","block_type":"box","text":"accounts that do not have a financial intermediary associated with them are not eligible to hold Investor C Shares, and any","page_number":339,"box":{"x":46,"y":652,"width":850,"height":13}},{"id":"1d42423a-288f-4d64-af63-25b71f694863","block_type":"box","text":"Investor C Shares held in such accounts will be automatically converted to Investor A Shares.","page_number":339,"box":{"x":45,"y":668,"width":645,"height":13}},{"id":"c06eec60-6eea-4e8a-86f8-4a39255e0f15","block_type":"box","text":"A CDSC of up to 1.00% may apply to certain redemptions of Investor A Shares of Summit Cash Reserves purchased in an","page_number":339,"box":{"x":45,"y":691,"width":851,"height":13}},{"id":"5d84b676-7090-4341-aa7f-c72a3fc4be23","block_type":"box","text":"exchange transaction for Investor A Shares of another mutual fund sponsored and advised by BlackRock or its affiliates","page_number":339,"box":{"x":46,"y":707,"width":830,"height":12}},{"id":"ba6b59b7-94b8-4844-aaa4-77cd504243ce","block_type":"box","text":"(“BlackRock Fund”) where no initial sales charge was paid at the time of purchase of such fund (each, an “Investor A Load","page_number":339,"box":{"x":46,"y":722,"width":862,"height":13}},{"id":"25927e32-474b-40c0-9c61-3b99251130a1","block_type":"box","text":"Waived BlackRock Portfolio”) as part of an investment of $1,","page_number":339,"box":{"x":45,"y":737,"width":430,"height":13}},{"id":"1100648e-933a-4b0c-914b-11746ef8f7b0","block_type":"box","text":"000,000 (lesser amounts may apply depending on the Investor A","page_number":339,"box":{"x":476,"y":738,"width":448,"height":12}},{"id":"ce78481d-c424-4872-94c9-930b21f0a55d","block_type":"box","text":"Load-Waived BlackRock Portfolio) or more. The Investor A Shares CDSC is only charged upon redemptions of Investor A Shares","page_number":339,"box":{"x":46,"y":753,"width":899,"height":13}},{"id":"54ce7c05-99d1-4615-bc01-10d61a2c32e9","block_type":"box","text":"within 18 months after you originally acquired such Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a","page_number":339,"box":{"x":45,"y":769,"width":871,"height":13}},{"id":"bfee3c4b-1470-4421-8484-24a13f6b724d","block_type":"box","text":"shorter holding period may apply depending on the Invest","page_number":339,"box":{"x":46,"y":784,"width":401,"height":13}},{"id":"6fc5eb83-5188-4064-9903-bfbbd0bc16f1","block_type":"box","text":"or A Load-Waived BlackRock Portfolio), unless you qualify for a","page_number":339,"box":{"x":448,"y":784,"width":452,"height":13}},{"id":"054ab110-94ac-4fe9-b546-2250a031cef5","block_type":"box","text":"waiver. There is no CDSC charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a","page_number":339,"box":{"x":45,"y":800,"width":891,"height":13}},{"id":"a457cd06-357a-459f-8ff1-c1bedad5ee60","block_type":"box","text":"shorter holding period, as applicable) as measured from your original purchase of Investor A Shares that you exchanged into","page_number":339,"box":{"x":46,"y":815,"width":864,"height":13}},{"id":"002b0588-4d4e-43f4-bbf5-3b14c2d9f049","block_type":"box","text":"Investor A Shares of Summit Cash Reserves or if you purchase Investor A Shares of Summit Cash Reserves not through an","page_number":339,"box":{"x":45,"y":831,"width":849,"height":13}},{"id":"4fb92ad3-fda3-4134-b90a-01da06e2ac89","block_type":"box","text":"exchange. The deferred sales charge on Investor A Shares is not charged in connection with: (a) redemptions of Investor A Shares","page_number":339,"box":{"x":46,"y":846,"width":894,"height":13}},{"id":"1ddf2bfc-2ce6-4954-bdfb-4e3fa50973b0","block_type":"box","text":"purchased through certain employer-sponsored retirement pla","page_number":339,"box":{"x":45,"y":862,"width":429,"height":13}},{"id":"79fc5826-2940-40a8-9d09-4181404dc6e2","block_type":"box","text":"ns and rollovers of current investments in a Fund through such","page_number":339,"box":{"x":475,"y":862,"width":436,"height":13}},{"id":"5b2eed47-af5a-4253-a70f-2bb4e5720552","block_type":"box","text":"plans; (b) exchanges pursuant to the exchange privilege describe","page_number":339,"box":{"x":45,"y":877,"width":444,"height":13}},{"id":"9f656e2f-94bd-40cd-b7da-4983063fed84","block_type":"box","text":"d in the Fund’s Prospectus; (c) redemptions made in connection","page_number":339,"box":{"x":490,"y":877,"width":439,"height":13}},{"id":"aa6a1097-5536-4ca7-89f5-f08d095fb29a","block_type":"box","text":"II-35","page_number":339,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"f5d469fa-8f7e-4fd2-9a30-522f5d48cb57","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":339,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"251cbc9f-fee2-4afe-8779-0e6900cf04a2","block_type":"box","text":"with minimum required distributions due to the shareholder rea","page_number":340,"box":{"x":45,"y":79,"width":443,"height":13}},{"id":"fc0f6b85-d555-42dd-b3e0-4d9fccef34ad","block_type":"box","text":"ching age 72 from IRA and 403(b)(7) accounts; (d) redemptions","page_number":340,"box":{"x":489,"y":79,"width":444,"height":13}},{"id":"13b02627-5a35-4ec7-b0d4-e53f1254e846","block_type":"box","text":"made with respect to certain retirement plans sponsored by BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":340,"box":{"x":45,"y":94,"width":873,"height":13}},{"id":"2fc283e1-3b56-4a35-8ad6-2ae9f2d638a7","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the distribution of","page_number":340,"box":{"x":46,"y":110,"width":852,"height":13}},{"id":"f4b62705-f0f0-4577-a0e7-e63bd5eafc07","block_type":"box","text":"account assets to a beneficiary of the decedent) or (ii) in connection with a shareholder’s disability (as defined in the Code)","page_number":340,"box":{"x":46,"y":125,"width":846,"height":13}},{"id":"6d61fc49-7879-4a1f-97db-ab7dca0ee8de","block_type":"box","text":"subsequent to the purchase of Investor A Shares; (f) involuntary redemptions of Investor A Shares in accounts with low balances;","page_number":340,"box":{"x":46,"y":141,"width":893,"height":13}},{"id":"b953f0ac-b28d-4ad0-bf8e-a67bc24dc7dd","block_type":"box","text":"(g) certain redemptions made pursuant to the Systematic Withdr","page_number":340,"box":{"x":46,"y":156,"width":445,"height":13}},{"id":"30410740-2363-482b-b171-247042053313","block_type":"box","text":"awal Plan (described below); (h) redemptions related to the","page_number":340,"box":{"x":492,"y":156,"width":409,"height":13}},{"id":"07e4872e-2f29-46cd-8d2b-b2312b96583a","block_type":"box","text":"payment of BNY Mellon Investment Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can","page_number":340,"box":{"x":45,"y":172,"width":880,"height":13}},{"id":"78d99de3-4e8d-4f09-a06e-644bc5c31c97","block_type":"box","text":"demonstrate hardship, in the absolute discretion of a Fund.","page_number":340,"box":{"x":46,"y":187,"width":408,"height":13}},{"id":"30707833-184b-472e-92ae-d6c094090135","block_type":"box","text":"If a holder of Investor A Shares of the Fund subsequently exchanges back into the same class of shares of the original affiliated","page_number":340,"box":{"x":45,"y":210,"width":876,"height":12}},{"id":"b379b141-bb95-4abb-ae08-79c33a19ab50","block_type":"box","text":"fund it will do so without paying any sales charge. If a holder of Investor A Shares of the Fund exchanges into Investor A Shares of","page_number":340,"box":{"x":45,"y":225,"width":908,"height":13}},{"id":"589c3457-cf78-423d-a240-b507310e44c7","block_type":"box","text":"another affiliated fund, the holder will be required to pay a sales charge equal to the difference, if any, between the sales charge","page_number":340,"box":{"x":46,"y":241,"width":880,"height":12}},{"id":"2955d93e-05a9-4b38-a69f-8dbfcc86e72d","block_type":"box","text":"previously paid on the shares of the original affiliated fund and the sales charge payable at the time of the exchange on the shares","page_number":340,"box":{"x":45,"y":256,"width":895,"height":13}},{"id":"391010d5-3124-4f57-a7b7-e535c058355d","block_type":"box","text":"of the new affiliated fund.","page_number":340,"box":{"x":46,"y":272,"width":178,"height":10}},{"id":"9a8054f5-ad12-4dc9-8e42-d61f0a38a193","block_type":"box","text":"It is contemplated that the exchange privilege may be applicable to other new mutual funds whose shares are distributed by the","page_number":340,"box":{"x":45,"y":294,"width":882,"height":13}},{"id":"2f604b7f-7a1b-495f-8983-819c1d61a49b","block_type":"box","text":"Distributor.","page_number":340,"box":{"x":45,"y":309,"width":81,"height":10}},{"id":"e3259bed-2acb-495b-a008-6be54173d331","block_type":"box","text":"Under the exchange privilege, exchanges are made on the basis of the relative NAVs of the shares being exchanged. Shares issued","page_number":340,"box":{"x":45,"y":331,"width":895,"height":13}},{"id":"195a1492-eaaa-4a53-8a3f-427394d41362","block_type":"box","text":"pursuant to dividend reinvestment are sold on a no-load basis in each of the affiliated funds. For purposes of the exchange","page_number":340,"box":{"x":45,"y":347,"width":847,"height":13}},{"id":"7b339b1c-2f5e-4dbf-bfef-852e1262f69e","block_type":"box","text":"privilege, dividend reinvestment shares shall be deemed to have","page_number":340,"box":{"x":45,"y":362,"width":437,"height":13}},{"id":"b0baad3e-20b6-433a-b3f3-bb4edcd2cd2f","block_type":"box","text":"been sold with a sales charge equal to the sales charge previously","page_number":340,"box":{"x":488,"y":362,"width":448,"height":13}},{"id":"ed05c510-4a97-4fb7-a016-c564cf4bc626","block_type":"box","text":"paid on the shares on which the dividend was paid. Based on this formula an exchange of Investor A Shares of the Fund for","page_number":340,"box":{"x":45,"y":378,"width":857,"height":13}},{"id":"1919e692-83ab-4bf5-8384-bc9f3965161b","block_type":"box","text":"Investor A Shares of an affiliated fund generally will require the payment of a sales charge equal to the difference, if any, between","page_number":340,"box":{"x":45,"y":394,"width":896,"height":12}},{"id":"b5b16c16-2151-432f-a25a-48c9695d8f16","block_type":"box","text":"the sales charge previously paid on the Investor A Shares originally exchanged for Investor A Shares of the Fund and the sales","page_number":340,"box":{"x":45,"y":409,"width":869,"height":13}},{"id":"d9273353-cd01-432a-90b4-16d739c01692","block_type":"box","text":"charge that may be payable at the time of the exchange on the Investor A Shares of the affiliated fund to be acquired.","page_number":340,"box":{"x":45,"y":425,"width":811,"height":12}},{"id":"61dc6fe6-3645-41dd-b49a-f4cec6eaa151","block_type":"box","text":"Before effecting an exchange, shareholders of the Fund should obtain a currently effective prospectus of the affiliated fund into","page_number":340,"box":{"x":46,"y":447,"width":877,"height":13}},{"id":"0a807b13-c051-4a29-9af4-02bd2c8208cb","block_type":"box","text":"which the exchange is to be made for information regarding the fund and for further details regarding such exchange.","page_number":340,"box":{"x":45,"y":462,"width":815,"height":13}},{"id":"ba024ee7-061f-46b9-90a1-9fb6d80b1db1","block_type":"box","text":"To effect an exchange, shareholders should contact their financial","page_number":340,"box":{"x":45,"y":484,"width":455,"height":13}},{"id":"b45ada90-59da-46e8-b3b8-832c835b9399","block_type":"box","text":"adviser, selected securities dealer or other financial intermediary,","page_number":340,"box":{"x":506,"y":484,"width":446,"height":13}},{"id":"b59ee3e8-169c-42da-ab7f-51c69a193422","block_type":"box","text":"who will advise the Fund of the exchange, or write to the Fund’s transfer agent requesting that the exchange be effected.","page_number":340,"box":{"x":45,"y":500,"width":833,"height":13}},{"id":"f04dae61-b330-4690-ac1d-2fc9c12b8d4b","block_type":"box","text":"Shareholders of certain affiliated funds with shares for which certificates have not been issued may effect an exchange by wire","page_number":340,"box":{"x":46,"y":515,"width":871,"height":13}},{"id":"784d9b66-cdb1-43b8-bbfc-b59d6bcef861","block_type":"box","text":"through their securities dealers. The exchange privilege may be m","page_number":340,"box":{"x":45,"y":531,"width":453,"height":13}},{"id":"c8f77053-405e-4fe4-9d4c-1512251b7f9b","block_type":"box","text":"odified or terminated at any time in accordance with the rules of","page_number":340,"box":{"x":499,"y":531,"width":447,"height":13}},{"id":"fed3790b-b019-4b83-b347-3cbc92350fb5","block_type":"box","text":"the Commission. There is currently no limitation on the number of","page_number":340,"box":{"x":45,"y":546,"width":465,"height":13}},{"id":"0baa2050-d914-4a81-9e92-452646401d5a","block_type":"box","text":"times a shareholder may effect an exchange into the Fund","page_number":340,"box":{"x":514,"y":546,"width":399,"height":13}},{"id":"a4b1890a-9d3a-42b4-ba6f-adc8aca36be3","block_type":"box","text":"through the exchange privilege; however, the Fund reserves the r","page_number":340,"box":{"x":45,"y":562,"width":448,"height":13}},{"id":"60c75697-00f4-4a53-8f92-e82b2900074d","block_type":"box","text":"ight to limit the number of times an investor may effect an","page_number":340,"box":{"x":493,"y":562,"width":404,"height":13}},{"id":"35d8fe60-ff1b-429a-99c3-d79c396b0527","block_type":"box","text":"exchange. Certain affiliated funds may suspend the continuous offering of their shares at any time and thereafter may resume such","page_number":340,"box":{"x":46,"y":577,"width":903,"height":13}},{"id":"952b7c66-7035-4d3c-b435-6ecc9971ebca","block_type":"box","text":"offering from time to time. The exchange privilege is available only to U.S. shareholders in states where the exchange legally may","page_number":340,"box":{"x":46,"y":593,"width":893,"height":13}},{"id":"db105479-d749-4c19-a4d3-c4233204c6cf","block_type":"box","text":"be made.","page_number":340,"box":{"x":46,"y":608,"width":61,"height":11}},{"id":"a461f4a2-acfa-467b-b3d8-ddc694aa2526","block_type":"box","text":"An exchange pursuant to the exchange privilege is treated as a sale of the exchanged shares and a purchase of the new shares for","page_number":340,"box":{"x":45,"y":631,"width":891,"height":13}},{"id":"0066d13e-3f11-4e4e-b295-8408c7a20709","block_type":"box","text":"Federal income tax purposes. In addition, an exchanging sha","page_number":340,"box":{"x":45,"y":646,"width":421,"height":13}},{"id":"d9e56c2b-8eac-4a49-9603-fb368cb30a3d","block_type":"box","text":"reholder of any of the funds may be subject to backup withholding","page_number":340,"box":{"x":466,"y":646,"width":464,"height":13}},{"id":"5c70d0c8-71f0-4251-b66e-a94ba5e23db6","block_type":"box","text":"unless such shareholder certifies under penalty of perjury that the taxpayer identification number on file with any such fund is","page_number":340,"box":{"x":46,"y":662,"width":872,"height":13}},{"id":"f5610597-32c3-477b-9c03-b9574d56cece","block_type":"box","text":"correct, and that he or she is not otherwise subject to backup withholding. See “Dividends and Taxes — Taxes.”","page_number":340,"box":{"x":45,"y":677,"width":781,"height":13}},{"id":"a7d8d90c-ed68-4fcf-9a4c-e3fd31104e83","block_type":"box","text":"Additional Shareholder Features (Investor A and Investor C Shares Only)","page_number":340,"box":{"x":45,"y":706,"width":533,"height":13}},{"id":"24d73f4f-eb71-4052-88d6-02ac47947130","block_type":"box","text":"Automatic Investment Plan (“AIP”).","page_number":340,"box":{"x":45,"y":731,"width":252,"height":12}},{"id":"8a0400c2-44ab-4b5c-af0d-98821c25641e","block_type":"box","text":"Certain shareholders may arrange for periodic investments in the Fund through automatic","page_number":340,"box":{"x":303,"y":731,"width":624,"height":13}},{"id":"3428e081-e7f5-4887-b346-af292575b1e4","block_type":"box","text":"deductions from a checking or savings account by completing the AIP Application which may be obtained from the Fund at","page_number":340,"box":{"x":46,"y":746,"width":858,"height":13}},{"id":"3a11a607-d064-4765-a267-66468033e0a9","block_type":"box","text":"(800) 441-7762, or online at www.blackrock.com. The minimum pre-authorized investment amount is $50 per Fund.","page_number":340,"box":{"x":46,"y":761,"width":818,"height":14}},{"id":"b23fa58d-378c-454b-ab7f-9c05026618e6","block_type":"box","text":"Systematic Withdrawal Plan (“SWP”).","page_number":340,"box":{"x":46,"y":784,"width":266,"height":13}},{"id":"beff6506-9afa-4c49-8ca7-b9f509828cef","block_type":"box","text":"The Fund offers a Systematic Withdrawal Plan to shareholders who wish to receive regular","page_number":340,"box":{"x":317,"y":784,"width":631,"height":13}},{"id":"c16a7179-2a82-4c9d-b2d4-b4be087726a8","block_type":"box","text":"distributions from their accounts. Upon commencement of the","page_number":340,"box":{"x":46,"y":799,"width":432,"height":13}},{"id":"36a4846f-7886-40b1-a976-ecb3fb14a7ae","block_type":"box","text":"SWP, the account must have a current value of $10,000 or more in","page_number":340,"box":{"x":483,"y":799,"width":465,"height":13}},{"id":"c00ec0c5-0ada-4339-bbbb-f5f88177c2e6","block_type":"box","text":"the Fund. Shareholders may elect to receive automatic cash payments of $50 or more at any interval. You may choose any day for","page_number":340,"box":{"x":45,"y":815,"width":903,"height":13}},{"id":"da20f670-5e54-436f-9d84-67e542543f98","block_type":"box","text":"the withdrawal. If no day is specified, the withdrawals will be processed on the 25th day of the month or, if such day is not a","page_number":340,"box":{"x":45,"y":830,"width":867,"height":13}},{"id":"617b49a1-99d0-4a44-a6f2-36eb0bb7e6f4","block_type":"box","text":"Business Day, on the prior Business Day and are paid promptly thereafter. An investor may utilize the SWP by completing the","page_number":340,"box":{"x":46,"y":846,"width":871,"height":13}},{"id":"23324ce4-b279-4467-a465-f090de5ecd6e","block_type":"box","text":"Systematic Withdrawal Plan Application Form which may be obtained by calling the Fund or by visiting our website at","page_number":340,"box":{"x":46,"y":861,"width":826,"height":13}},{"id":"5243140d-b45d-4443-8267-4c8f2055368a","block_type":"box","text":"www.blackrock.com.","page_number":340,"box":{"x":45,"y":877,"width":149,"height":10}},{"id":"fd4624e2-8f22-474b-8503-71ec57bf98ce","block_type":"box","text":"II-36","page_number":340,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"60458afa-6269-41ec-bce5-22cf3d6588c3","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":340,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"70e20c81-f398-4abb-a932-83c494564f3b","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income di","page_number":341,"box":{"x":46,"y":79,"width":448,"height":10}},{"id":"b3ed4f46-0a4f-485f-abe3-597de2fc43c5","block_type":"box","text":"vidends their invested principal in the account will be depleted.","page_number":341,"box":{"x":495,"y":79,"width":435,"height":13}},{"id":"df07e578-ef51-4512-bd35-1271c7504d8b","block_type":"box","text":"To participate in the SWP, shareholders must have their dividends automatically reinvested. Shareholders may change or cancel","page_number":341,"box":{"x":45,"y":94,"width":884,"height":13}},{"id":"4015bf12-ef46-4ad3-925b-5f2cf210a1ac","block_type":"box","text":"the SWP at any time, upon written notice to the Fund, or by calling the Fund at (800) 441-7762.","page_number":341,"box":{"x":45,"y":110,"width":670,"height":13}},{"id":"69ef6299-7562-4c16-8526-f5e077c39397","block_type":"box","text":"For this reason, a shareholder may not participate in the Autom","page_number":341,"box":{"x":45,"y":133,"width":443,"height":12}},{"id":"818937b6-8d5f-4ccc-89af-5f50685a0e26","block_type":"box","text":"atic Investment Plan (see “Account Services and Privileges —","page_number":341,"box":{"x":489,"y":133,"width":421,"height":12}},{"id":"abf9fb26-06f5-429c-aef5-ea0ec3b24c9d","block_type":"box","text":"Automatic Investment Plan” in the Fund’s Prospectus) and the Systematic Withdrawal Plan at the same time.","page_number":341,"box":{"x":45,"y":148,"width":755,"height":13}},{"id":"43f74d2e-102b-4e7f-8b30-1a1924c70e77","block_type":"box","text":"Dividend Allocation Plan.","page_number":341,"box":{"x":45,"y":171,"width":179,"height":10}},{"id":"04bec27c-6f22-4b54-8c96-8304fd72206d","block_type":"box","text":"The Dividend Allocation Plan allows shareholders to elect to have all their dividends and any other","page_number":341,"box":{"x":229,"y":171,"width":687,"height":13}},{"id":"7e13f131-1003-4656-8210-55eb6fe9025a","block_type":"box","text":"distributions from the Fund or any Eligible Fund (which includes the Fund and other funds as designated by BRIL from time to","page_number":341,"box":{"x":46,"y":186,"width":881,"height":13}},{"id":"e070bd15-8ba2-4a7d-a6f8-d51d8eb7ddc0","block_type":"box","text":"time) automatically invested at NAV in one other such Eligible","page_number":341,"box":{"x":45,"y":202,"width":435,"height":13}},{"id":"eb1dfc29-be0a-40e6-8895-879afce5f087","block_type":"box","text":"Fund designated by the shareholder, provided the account into","page_number":341,"box":{"x":485,"y":202,"width":434,"height":13}},{"id":"b11a0ec4-14b1-4f8e-a886-1c2ee42f4c45","block_type":"box","text":"which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":341,"box":{"x":45,"y":217,"width":730,"height":13}},{"id":"40c14e1b-9fa9-4f2e-b731-f7f64a4fb822","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":341,"box":{"x":46,"y":248,"width":387,"height":12}},{"id":"1ea73957-e332-4cc4-a8e3-d23904a8501e","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares of the Fund will","page_number":341,"box":{"x":45,"y":273,"width":898,"height":13}},{"id":"b099f90d-c31f-458e-9a72-d20519cc1526","block_type":"box","text":"convert automatically into Investor A Shares of the Fund (the “In","page_number":341,"box":{"x":45,"y":288,"width":453,"height":13}},{"id":"212adb2e-06ea-463f-900e-f3502201ac7c","block_type":"box","text":"vestor C 8-Year Conversion”). It is the financial intermediary’s","page_number":341,"box":{"x":498,"y":288,"width":436,"height":13}},{"id":"8090d951-caf1-4bc5-83a9-b73df10cb1cb","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date, certain financial","page_number":341,"box":{"x":45,"y":304,"width":891,"height":13}},{"id":"6a61f54f-6cca-4473-b35b-86aaec466716","block_type":"box","text":"intermediaries, including group retirement recordkeeping pla","page_number":341,"box":{"x":45,"y":319,"width":422,"height":13}},{"id":"fe1da7ec-c2bc-434e-996e-c31c5b55b816","block_type":"box","text":"tforms, may not have been tracking such holding periods and","page_number":341,"box":{"x":467,"y":319,"width":426,"height":13}},{"id":"6e809ff0-757c-4a61-af91-f3ee0751df70","block_type":"box","text":"therefore may not be able to process such conversions. In such instances, Investor C Shares held as of the Effective Date will","page_number":341,"box":{"x":45,"y":335,"width":859,"height":13}},{"id":"0087de0b-cf89-4090-8787-293e61ca4e1c","block_type":"box","text":"automatically convert to Investor A Shares approximately eight years after the Effective Date. If, as of November 23, 2028 (eight","page_number":341,"box":{"x":46,"y":350,"width":893,"height":13}},{"id":"ae826915-095b-4678-a870-fa52ae9b7c9b","block_type":"box","text":"years after the Effective Date), a financial intermediary has","page_number":341,"box":{"x":45,"y":366,"width":406,"height":13}},{"id":"0ec29170-8371-4ae5-8668-f7a9a547e2c6","block_type":"box","text":"not implemented systems or procedures to track holding periods","page_number":341,"box":{"x":457,"y":366,"width":445,"height":13}},{"id":"102cd76b-a046-4947-9735-4246607d6da0","block_type":"box","text":"commencing from the Effective Date, shareholders holding Investor C Shares through such financial intermediary will no longer be","page_number":341,"box":{"x":45,"y":381,"width":908,"height":13}},{"id":"77557d36-3be4-46e6-964a-08cdbfccbcdd","block_type":"box","text":"eligible to hold Investor C Shares and any such shares will convert to Investor A Shares as soon as reasonably practicable after","page_number":341,"box":{"x":46,"y":397,"width":874,"height":13}},{"id":"325c9ee9-4369-4dab-935a-a882c64edc39","block_type":"box","text":"such date.","page_number":341,"box":{"x":46,"y":412,"width":68,"height":10}},{"id":"da79c369-68a9-4441-a0cf-c5bad173f7ba","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold Investor C Shares, and","page_number":341,"box":{"x":45,"y":435,"width":907,"height":13}},{"id":"bb65eae9-fbb7-4136-83ed-db7f9a53ee3e","block_type":"box","text":"any Investor C Shares held in such accounts will be automatically converted into Investor A Shares (the “Investor C Direct","page_number":341,"box":{"x":46,"y":451,"width":848,"height":12}},{"id":"be1d6ec1-5910-4f11-85ff-99da330d628d","block_type":"box","text":"Accounts Conversion” and together with the Investor C 8-Year Conversion, the “Investor C Conversions”).","page_number":341,"box":{"x":45,"y":466,"width":749,"height":13}},{"id":"0bc060e9-6625-47b4-bcdf-dc43fa4a2524","block_type":"box","text":"The Investor C Conversions will occur at least once each month (on the “Investor C Conversion Date”) on the basis of the relative","page_number":341,"box":{"x":45,"y":489,"width":905,"height":12}},{"id":"d6c1379d-7db1-44cb-90c4-caaacfa9af06","block_type":"box","text":"NAV of the shares of the two applicable classes on the Investor C Conversion Date, without the imposition of any sales load, fee","page_number":341,"box":{"x":45,"y":504,"width":893,"height":13}},{"id":"0e32df61-2490-4d08-8d7f-c6e73e560cb9","block_type":"box","text":"or other charge. The Investor C Conversions will not be deemed a purchase or sale of the shares for Federal income tax purposes.","page_number":341,"box":{"x":46,"y":520,"width":896,"height":13}},{"id":"2c0d92f8-7ea2-47a1-a235-a705a418f14c","block_type":"box","text":"Shares acquired through reinvestment of dividends on Investor C Shares will also convert automatically to Investor A Shares, as set","page_number":341,"box":{"x":46,"y":535,"width":908,"height":13}},{"id":"106d00af-6605-4c83-abb2-ada94784ba0a","block_type":"box","text":"forth in the Fund’s Prospectus. The Investor C Conversion Date for dividend reinvestment shares will be calculated taking into","page_number":341,"box":{"x":45,"y":551,"width":877,"height":13}},{"id":"c958d241-17b4-4d03-814f-9c38bce97d78","block_type":"box","text":"account the length of time the shares underlying the dividend reinvestment shares were outstanding.","page_number":341,"box":{"x":46,"y":566,"width":691,"height":13}},{"id":"824c83a9-84d0-4cac-a2b3-83a46dd7bff7","block_type":"box","text":"Institutional Shares","page_number":341,"box":{"x":45,"y":596,"width":141,"height":11}},{"id":"5c1e35f6-6c49-4d58-84cf-11d129befced","block_type":"box","text":"Purchase of Shares","page_number":341,"box":{"x":45,"y":622,"width":129,"height":10}},{"id":"0b8caf68-5312-41bb-93e9-e4f2f9717b96","block_type":"box","text":". Summit Cash Reserves offers Institutional Shares as described in the Fund’s Prospectus.","page_number":341,"box":{"x":176,"y":622,"width":612,"height":12}},{"id":"8e320aa7-ed76-4561-ad3a-c1ab7402b253","block_type":"box","text":"In addition, the following investors may purchase Institutional S","page_number":341,"box":{"x":45,"y":644,"width":445,"height":13}},{"id":"7b343081-9ea5-4740-ad5f-ecb8548686cb","block_type":"box","text":"hares: employees, officers and directors/trustees of BlackRock,","page_number":341,"box":{"x":491,"y":644,"width":431,"height":13}},{"id":"30527cca-a2a6-4a4e-a00d-e46755e5038a","block_type":"box","text":"Inc., BlackRock Funds, Bank of America Corporation (“BofA Cor","page_number":341,"box":{"x":45,"y":660,"width":460,"height":13}},{"id":"4b70c8f7-f211-4888-8ee9-e8489290408f","block_type":"box","text":"p.”), Barclays PLC or their respective affiliates and immediate","page_number":341,"box":{"x":506,"y":660,"width":428,"height":13}},{"id":"83b34004-7a3d-4a4d-9cb0-8b47aaa7ed79","block_type":"box","text":"family members of such persons, if they open an account directly with BlackRock; individuals and “Institutional Investors” with a","page_number":341,"box":{"x":45,"y":675,"width":903,"height":13}},{"id":"586de82a-8ef5-4d8d-a209-7c0c222d9343","block_type":"box","text":"minimum initial investment of $2 million who may purchase shares","page_number":341,"box":{"x":45,"y":691,"width":469,"height":13}},{"id":"bc017a5f-f84f-42d8-8d32-74788545787f","block_type":"box","text":"of the Fund through a financial intermediary that has entered","page_number":341,"box":{"x":519,"y":691,"width":425,"height":13}},{"id":"d8fe3615-c48e-48b5-9755-751d3a944a3e","block_type":"box","text":"into an agreement with the Distributor to purchase such shares","page_number":341,"box":{"x":45,"y":706,"width":437,"height":13}},{"id":"791cedb2-b150-489e-aa61-3f579f75f1f9","block_type":"box","text":"(“Institutional Investors” include, but are not limited to,","page_number":341,"box":{"x":488,"y":706,"width":388,"height":13}},{"id":"72c7f1db-d1cd-4036-8c43-ef0c59482b95","block_type":"box","text":"endowments, foundations, family offices, local, city, and state gov","page_number":341,"box":{"x":46,"y":722,"width":457,"height":13}},{"id":"04fd0c3c-3257-4ea0-ab63-f2de26f71c79","block_type":"box","text":"ernmental institutions, corporations, and insurance company","page_number":341,"box":{"x":504,"y":722,"width":422,"height":13}},{"id":"a3db8d99-0915-4de4-8463-6506e66fae92","block_type":"box","text":"separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs, SIMPLE IRAs or","page_number":341,"box":{"x":46,"y":737,"width":870,"height":13}},{"id":"e7d536ce-2c4b-4cc6-8d31-6958a6ca5cd1","block_type":"box","text":"SARSEPs), state sponsored 529 college savings plans, collectiv","page_number":341,"box":{"x":46,"y":753,"width":430,"height":13}},{"id":"cde72083-237c-4609-b58b-13997d7758b5","block_type":"box","text":"e trust funds, investment companies or other pooled investment","page_number":341,"box":{"x":476,"y":753,"width":440,"height":13}},{"id":"b22c0fc7-fb46-48b5-bd95-fca59ac0e77f","block_type":"box","text":"vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which may purchase shares of the Fund through a","page_number":341,"box":{"x":45,"y":769,"width":903,"height":12}},{"id":"8cdcb8a3-7130-43da-b183-779ea0cb1b43","block_type":"box","text":"financial intermediary that has entered into an agreement with the","page_number":341,"box":{"x":45,"y":784,"width":459,"height":13}},{"id":"ce966c07-f47e-49c0-bb23-a0bcd04a0179","block_type":"box","text":"Distributor to purchase such shares; clients investing through a","page_number":341,"box":{"x":509,"y":784,"width":436,"height":13}},{"id":"a42f436f-ba41-42c1-af2c-31b4d750e368","block_type":"box","text":"self-directed IRA brokerage account program sponsored by a retirement plan record-keeper, provided that such program offers","page_number":341,"box":{"x":46,"y":800,"width":880,"height":12}},{"id":"c07e8c0b-7d3e-4127-b5ce-5633a05411de","block_type":"box","text":"only mutual fund options and that the program maintains an a","page_number":341,"box":{"x":46,"y":815,"width":435,"height":13}},{"id":"0f1c05c3-e795-4ff2-9996-a1ff0203a068","block_type":"box","text":"ccount with the Fund on an omnibus basis; clients of financial","page_number":341,"box":{"x":482,"y":815,"width":430,"height":12}},{"id":"d803582e-6107-4ee5-81e7-bfbfe44341b9","block_type":"box","text":"intermediaries that: (i) charge such clients a fee for advisory, i","page_number":341,"box":{"x":45,"y":831,"width":426,"height":12}},{"id":"1505e7ae-4b5b-46a9-92b6-20d42785ab38","block_type":"box","text":"nvestment consulting, or similar services or (ii) have entered into an","page_number":341,"box":{"x":471,"y":831,"width":468,"height":12}},{"id":"175e42f4-f0d4-458c-9e8e-552f92ae4321","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares thr","page_number":341,"box":{"x":46,"y":846,"width":434,"height":13}},{"id":"28c480f4-cb51-49f0-a660-abbc5512bcf7","block_type":"box","text":"ough a no-load program or investment platform, in each case, with","page_number":341,"box":{"x":481,"y":846,"width":465,"height":13}},{"id":"dd74765d-4c2f-488e-8a62-40a6e74bfa76","block_type":"box","text":"no minimum initial investment; clients investing through financi","page_number":341,"box":{"x":45,"y":862,"width":444,"height":12}},{"id":"4380285a-b7f8-46d0-888c-f64052f18c70","block_type":"box","text":"al intermediaries that have entered into an agreement with the","page_number":341,"box":{"x":490,"y":862,"width":429,"height":12}},{"id":"ca26a7de-6af7-47f6-814b-50954cae6683","block_type":"box","text":"Distributor to offer such shares on a platform that charges a transaction based sales commission outside of the Fund, with a","page_number":341,"box":{"x":45,"y":877,"width":859,"height":13}},{"id":"7a8db8ff-880d-4d2d-b9ce-f0515c6f8064","block_type":"box","text":"II-37","page_number":341,"box":{"x":482,"y":917,"width":35,"height":9}},{"id":"45e33ea3-03d2-42d6-b0d7-e051d9b7b614","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":341,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"43398272-0ce2-4342-945c-7f315f07fabe","block_type":"box","text":"minimum initial investment of $1,000; tax-qualified accounts for insurance agents that are registered representatives of an","page_number":342,"box":{"x":45,"y":78,"width":846,"height":14}},{"id":"ef925708-344e-432e-95b5-628306caff9e","block_type":"box","text":"insurance company’s broker-dealer that has entered into an ag","page_number":342,"box":{"x":45,"y":94,"width":433,"height":13}},{"id":"c853393c-12af-4dfa-9f4c-2b2814e8a8e8","block_type":"box","text":"reement with the Distributor to offer Institutional Shares, and the","page_number":342,"box":{"x":478,"y":94,"width":454,"height":13}},{"id":"828fe20b-fdf8-4d4b-8f33-a6dc292e6d53","block_type":"box","text":"family members of such persons, with a minimum initial investment","page_number":342,"box":{"x":45,"y":110,"width":472,"height":13}},{"id":"bbd82113-c5c7-4a7e-beca-713b97e743fe","block_type":"box","text":"of $1,000; trust department clients of Bank of America, N.A.","page_number":342,"box":{"x":522,"y":109,"width":423,"height":14}},{"id":"141a820e-c055-4f2f-9c5f-e2d2507a75cf","block_type":"box","text":"and its affiliates for whom they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise","page_number":342,"box":{"x":46,"y":125,"width":903,"height":13}},{"id":"418de6b6-4f95-4472-8d46-0856ae82f8c4","block_type":"box","text":"have investment discretion, or (iii) act as custodian for at least","page_number":342,"box":{"x":45,"y":141,"width":430,"height":12}},{"id":"23b0265e-1fdc-4f12-9400-c95d3b307892","block_type":"box","text":"$2 million in assets; and holders of certain BofA Corp. sponsored","page_number":342,"box":{"x":480,"y":140,"width":453,"height":14}},{"id":"b507c5ff-1b4a-45a8-a5f2-84ae0e0ea0ca","block_type":"box","text":"unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of the Fund.","page_number":342,"box":{"x":46,"y":156,"width":689,"height":13}},{"id":"23cf9e8a-6a1d-44fa-b5bc-19075d1e9797","block_type":"box","text":"The Fund may in its discretion waive or modify any minimum investment amount, may reject any order for any class of shares","page_number":342,"box":{"x":45,"y":179,"width":878,"height":12}},{"id":"9ac6108a-8ef7-4a0e-bc40-1172f7f6d9a9","block_type":"box","text":"and may suspend and resume the sale of shares of the Fund at any time.","page_number":342,"box":{"x":46,"y":194,"width":496,"height":13}},{"id":"6f54a0a7-b9d7-479a-bbb2-46c545c37b1a","block_type":"box","text":"Institutional Shares of the Fund may be purchased by customers of broker-dealers and agents that have established a servicing","page_number":342,"box":{"x":45,"y":216,"width":873,"height":13}},{"id":"1a5d71c5-7289-4a8b-a63a-af78c8c2da00","block_type":"box","text":"relationship with the Fund on behalf of their customers. These broker-dealers and agents may impose additional or different","page_number":342,"box":{"x":45,"y":232,"width":861,"height":13}},{"id":"c3389586-fe2c-4e26-a670-aa6a3d84e06a","block_type":"box","text":"conditions on the purchase or redemption of Fund shares by their c","page_number":342,"box":{"x":45,"y":247,"width":466,"height":13}},{"id":"48559690-ca81-44b1-b907-e6f65073df32","block_type":"box","text":"ustomers and may charge their customers transaction, account","page_number":342,"box":{"x":512,"y":247,"width":433,"height":13}},{"id":"58afdb58-7cc0-49da-bf18-e086dcc264d8","block_type":"box","text":"or other fees on the purchase and redemption of Fund shares. Each broker-dealer or agent is responsible for transmitting to its","page_number":342,"box":{"x":46,"y":263,"width":874,"height":13}},{"id":"5c824728-86d4-48d7-94d8-15cb14866902","block_type":"box","text":"customers a schedule of any such fees and information regarding any additional or different conditions regarding purchases and","page_number":342,"box":{"x":45,"y":278,"width":887,"height":13}},{"id":"a833fc51-f8d4-4c51-bbd0-50f4bc647ba3","block_type":"box","text":"redemptions. Shareholders who are customers of such broker-de","page_number":342,"box":{"x":45,"y":294,"width":447,"height":13}},{"id":"5fb905c6-ca02-44c0-a490-6853b8a9ea1f","block_type":"box","text":"alers or agents should consult them for information regarding","page_number":342,"box":{"x":492,"y":294,"width":428,"height":13}},{"id":"7801c671-f688-41dd-b0b6-ab74dd2ca883","block_type":"box","text":"these fees and conditions.","page_number":342,"box":{"x":45,"y":309,"width":176,"height":10}},{"id":"a1713181-6d03-44a9-8f8c-3a2d38eac324","block_type":"box","text":"Except as otherwise specified in the Fund’s Prospectus, payment for Institutional Shares must normally be made in Federal funds","page_number":342,"box":{"x":45,"y":331,"width":892,"height":13}},{"id":"b461f99e-81b0-4f89-9afe-e9ac68685004","block_type":"box","text":"or other immediately available funds by the time specified by the sha","page_number":342,"box":{"x":46,"y":347,"width":475,"height":13}},{"id":"a63c1186-ce24-44a6-8b00-eeca370ddb6f","block_type":"box","text":"reholder’s financial intermediary, but in no event later than","page_number":342,"box":{"x":521,"y":347,"width":410,"height":13}},{"id":"78262cbd-d6ad-4d7b-bacc-0cc9bbf223ac","block_type":"box","text":"the close of the federal funds wire (normally 6:45 p.m. (Eastern time)). Payment may also, in the discretion of the Fund, be made","page_number":342,"box":{"x":45,"y":362,"width":892,"height":13}},{"id":"bd839cce-79e3-411a-af81-7ad7ea7fb45d","block_type":"box","text":"in the form of securities that are permissible investments for the Fund. If payment for a purchase order is not received by the","page_number":342,"box":{"x":45,"y":378,"width":861,"height":13}},{"id":"2c0aad71-82f1-4ccd-a618-9bf24ded004f","block_type":"box","text":"prescribed time, an investor may be liable for any resulting losses or expenses incurred by the Fund.","page_number":342,"box":{"x":45,"y":394,"width":689,"height":12}},{"id":"e85352be-9a74-4f01-9d94-ed08ee28341a","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a financial","page_number":342,"box":{"x":45,"y":416,"width":818,"height":13}},{"id":"0ebd94f0-0059-4342-b17a-c225939367e5","block_type":"box","text":"intermediary’s policies and procedures, exchange shares of the Fund from one class of shares to another class of shares of the","page_number":342,"box":{"x":45,"y":431,"width":866,"height":13}},{"id":"6e3131e1-5655-40d1-aee0-39384e7a4287","block_type":"box","text":"Fund, provided that the exchanged shares are not subject to a C","page_number":342,"box":{"x":45,"y":447,"width":443,"height":13}},{"id":"d5c9a8b5-0349-42bc-b64e-d7cda10d298c","block_type":"box","text":"DSC and that shareholders meet eligibility requirements of the","page_number":342,"box":{"x":489,"y":447,"width":432,"height":13}},{"id":"f01fa05a-f33e-471d-b3e8-a13dffbb0e79","block_type":"box","text":"new share class.","page_number":342,"box":{"x":45,"y":462,"width":110,"height":10}},{"id":"b5e2b812-96e8-4c36-bffd-605dade222dc","block_type":"box","text":"DCC&S.","page_number":342,"box":{"x":45,"y":485,"width":64,"height":10}},{"id":"20ca0be2-ae34-43b1-bbbf-b8857f3b31b5","block_type":"box","text":"Qualified Plans may be able to invest in shares of the Fund through the Defined Contribution Clearance and Settlement","page_number":342,"box":{"x":115,"y":484,"width":828,"height":13}},{"id":"96da6894-c4ad-40ab-b927-a910144500de","block_type":"box","text":"System (“DCC&S”) of the National Securities Clearing Corpora","page_number":342,"box":{"x":46,"y":500,"width":448,"height":13}},{"id":"8094fbbe-b9f5-414a-8521-974e8892035c","block_type":"box","text":"tion. Institutions qualifying to trade on DCC&S include broker/","page_number":342,"box":{"x":494,"y":500,"width":445,"height":13}},{"id":"74288db5-f38b-4182-b917-ae0911ca5fae","block_type":"box","text":"dealers, trust companies and third party administrators. Please","page_number":342,"box":{"x":46,"y":515,"width":432,"height":13}},{"id":"b7dc780a-5a7f-49d0-b9ce-d385c6856e47","block_type":"box","text":"contact the Fund for information on agreements, procedures, sales","page_number":342,"box":{"x":483,"y":515,"width":460,"height":13}},{"id":"67925ab6-20c6-45f3-9217-a66d8c4cf933","block_type":"box","text":"charges and fees related to DCC&S transactions.","page_number":342,"box":{"x":45,"y":531,"width":339,"height":13}},{"id":"6defbd0f-e1af-4902-abe9-09f794d1af93","block_type":"box","text":"Purchase of Shares of WeLEAF","page_number":342,"box":{"x":45,"y":560,"width":226,"height":10}},{"id":"699ba46e-2645-467d-ba35-4d53157ee90a","block_type":"box","text":"WeLEAF has authorized one or more brokers and/or financial ins","page_number":342,"box":{"x":45,"y":584,"width":455,"height":10}},{"id":"19bb1a3b-bd0d-4cd0-b58d-c3a3725f5ea8","block_type":"box","text":"titutions (“Authorized Persons”) to receive on its behalf purchase","page_number":342,"box":{"x":501,"y":584,"width":452,"height":13}},{"id":"4848dbd5-eafc-4c4e-a7ee-7c001b33c047","block_type":"box","text":"and redemption orders that are in “good form” in accordance","page_number":342,"box":{"x":46,"y":600,"width":429,"height":13}},{"id":"e4e83700-3566-4b4a-a596-ad6c51f5f3e9","block_type":"box","text":"with the policies of those Authorized Persons. Such Authorized","page_number":342,"box":{"x":480,"y":600,"width":437,"height":13}},{"id":"48ab1841-a6e7-40a0-9cae-71ec8f4eb09f","block_type":"box","text":"Persons are authorized to designate other intermediaries to","page_number":342,"box":{"x":45,"y":615,"width":407,"height":13}},{"id":"0350e1eb-b923-4762-bc9a-25c6b774bfff","block_type":"box","text":"receive purchase and redemption orders on the Fund’s behalf, and the","page_number":342,"box":{"x":457,"y":615,"width":483,"height":13}},{"id":"31555953-6c14-45e5-a3d0-f50ecca78a33","block_type":"box","text":"Fund will be deemed to have received a purchase or redemption o","page_number":342,"box":{"x":45,"y":631,"width":456,"height":13}},{"id":"2ab73260-c1f6-4199-ab69-c9ee687f4715","block_type":"box","text":"rder when an Authorized Person or, if applicable, such","page_number":342,"box":{"x":502,"y":631,"width":378,"height":13}},{"id":"f1bba04b-0db1-47d2-9e9d-e2c2cf9fd049","block_type":"box","text":"Authorized Person’s authorized designee, receives the order.","page_number":342,"box":{"x":45,"y":646,"width":414,"height":13}},{"id":"3df61c4a-60ab-401f-abcf-924be03d26bd","block_type":"box","text":"Such customer orders will be priced at the Fund’s NAV next","page_number":342,"box":{"x":466,"y":646,"width":418,"height":13}},{"id":"1d396b21-bfa4-4cde-828b-1aabed947752","block_type":"box","text":"computed after they are received by an Authorized Person or such","page_number":342,"box":{"x":45,"y":662,"width":458,"height":13}},{"id":"cf451136-60eb-4373-b22f-705abd9ed43c","block_type":"box","text":"Authorized Person’s authorized designee. Financial institutions","page_number":342,"box":{"x":508,"y":662,"width":434,"height":13}},{"id":"fdd15733-c4d3-42ea-b159-c85a9b4366bd","block_type":"box","text":"may include retirement plan service providers who aggregat","page_number":342,"box":{"x":45,"y":677,"width":414,"height":13}},{"id":"6081ba4b-1491-4e83-851f-39a0a967ab5b","block_type":"box","text":"e purchase and redemption instructions received from numerous","page_number":342,"box":{"x":460,"y":677,"width":445,"height":13}},{"id":"467f6ac2-e160-462c-b8f1-6b69afc84603","block_type":"box","text":"retirement plans or plan participants.","page_number":342,"box":{"x":45,"y":693,"width":257,"height":13}},{"id":"4e768181-b497-4f1f-bbcb-26cf7968f810","block_type":"box","text":"Investor Shares","page_number":342,"box":{"x":45,"y":722,"width":111,"height":10}},{"id":"9ff4611a-e39b-46ee-b88d-be3f254b71a9","block_type":"box","text":"Purchase of Shares.","page_number":342,"box":{"x":45,"y":746,"width":133,"height":10}},{"id":"ed4c6198-7a7c-4604-8c49-507459adabf8","block_type":"box","text":"The minimum investment for the initial purchase of shares is $1,000. There is no investment minimum for","page_number":342,"box":{"x":184,"y":746,"width":737,"height":13}},{"id":"4f3d3522-5436-497c-8d60-f4c4b166ee20","block_type":"box","text":"employer-sponsored retirement plans (not including SEP IRAs,","page_number":342,"box":{"x":46,"y":762,"width":433,"height":13}},{"id":"e1c64bf0-8abf-4817-95de-6bcb23b6ee65","block_type":"box","text":"SIMPLE IRAs or SARSEPs). There is no investment minimum for","page_number":342,"box":{"x":485,"y":762,"width":454,"height":12}},{"id":"3bd42ced-c8d0-44b3-a8a9-ef9086cc2f78","block_type":"box","text":"certain fee-based programs. There is a $50 minimum for subsequent investments (with the exception of certain employer","page_number":342,"box":{"x":45,"y":777,"width":842,"height":13}},{"id":"bb7f835a-29a2-4961-a911-5c6f679af1c1","block_type":"box","text":"sponsored retirement plans which may have a lower minimum). Pu","page_number":342,"box":{"x":46,"y":793,"width":465,"height":13}},{"id":"bc0f8ceb-4c7a-4b69-91da-0b3d354b31dd","block_type":"box","text":"rchases through the Automatic Investment Plan are subject to a","page_number":342,"box":{"x":511,"y":793,"width":439,"height":13}},{"id":"1c32de30-020e-4752-8f73-58f3c57f7f91","block_type":"box","text":"lower initial purchase minimum. In addition, the minimum in","page_number":342,"box":{"x":45,"y":808,"width":427,"height":13}},{"id":"a53eb8c0-1691-4bb8-98fd-80baa16e9d68","block_type":"box","text":"itial investment for employees of the Fund, the Fund’s Manager,","page_number":342,"box":{"x":473,"y":808,"width":444,"height":13}},{"id":"87a88aa9-08a1-4f1e-92ba-4c5f3176be69","block_type":"box","text":"sub-adviser, BRIL or transfer agent or employees of their affiliates is $100, unless payment is made through a payroll deduction","page_number":342,"box":{"x":46,"y":823,"width":884,"height":14}},{"id":"d746fb3a-8f43-4171-95e1-58aa084d22c1","block_type":"box","text":"program in which case the minimum investment is $25.","page_number":342,"box":{"x":45,"y":839,"width":385,"height":13}},{"id":"27a4f68a-dbd3-496f-bd81-23fb39b13935","block_type":"box","text":"Purchases Through Brokers.","page_number":342,"box":{"x":45,"y":861,"width":197,"height":13}},{"id":"d8b13923-6d24-41d6-bd74-730e610d09cb","block_type":"box","text":"It is the responsibility of brokers to transmit purchase orders and payment on a timely basis.","page_number":342,"box":{"x":248,"y":861,"width":639,"height":13}},{"id":"345b48c5-2660-4c59-b9cb-ba86e282681d","block_type":"box","text":"Generally, if payment is not received within the period described in t","page_number":342,"box":{"x":46,"y":877,"width":474,"height":13}},{"id":"74d23fe1-2d44-46ad-9d0c-2d9d73c83512","block_type":"box","text":"he Prospectus, the order will be canceled, notice thereof will","page_number":342,"box":{"x":520,"y":877,"width":416,"height":13}},{"id":"7501adc7-877f-40b4-86ef-d15957f28ab5","block_type":"box","text":"II-38","page_number":342,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"4f81af55-99be-473f-94b2-2bc628da44db","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":342,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"799ddad4-2222-4c77-9478-e18411a76c59","block_type":"box","text":"be given, and the broker and its customers will be responsible for any loss to the Fund or its shareholders. Orders of less than","page_number":343,"box":{"x":46,"y":79,"width":868,"height":13}},{"id":"4dd184c5-5133-42a1-8b23-3e718b355826","block_type":"box","text":"$500 may be mailed by a broker to the transfer agent.","page_number":343,"box":{"x":46,"y":94,"width":374,"height":13}},{"id":"f8c842e9-2c6d-40b9-b1f3-a6aa9ea661b5","block_type":"box","text":"Other Purchase Information.","page_number":343,"box":{"x":46,"y":119,"width":199,"height":10}},{"id":"6a84a211-ae9a-4852-824f-406f2cc25299","block_type":"box","text":"Shares of the Fund are sold on a continuous basis by BRIL as distributor. BRIL maintains its","page_number":343,"box":{"x":251,"y":119,"width":640,"height":13}},{"id":"4ed617a9-d314-4ae2-a675-01483048d181","block_type":"box","text":"principal offices at 50 Hudson Yards, New York, New York 10001. Purchases may be effected on weekdays on which both the","page_number":343,"box":{"x":45,"y":135,"width":887,"height":13}},{"id":"79dbdef2-ac37-465d-8f12-bd0c2bd33e23","block_type":"box","text":"NYSE and the Federal Reserve Bank of Philadelphia are open for business (a “Business Day”). Payment for orders which are not","page_number":343,"box":{"x":45,"y":150,"width":893,"height":13}},{"id":"50ad2065-e958-4f88-a8f5-1e9865992ebe","block_type":"box","text":"received or accepted will be returned after prompt inquiry. The issuance of shares is recorded on the books of the Fund. No","page_number":343,"box":{"x":45,"y":166,"width":856,"height":13}},{"id":"74833061-bf97-421b-86a3-bb91bfce28d1","block_type":"box","text":"certificates will be issued for shares. Payments for shares of the F","page_number":343,"box":{"x":45,"y":181,"width":449,"height":13}},{"id":"9e4cbbf3-3c8b-4f95-bf52-8cdd5e46da07","block_type":"box","text":"und may, in the discretion of the Fund’s Manager, be made in the","page_number":343,"box":{"x":494,"y":181,"width":455,"height":13}},{"id":"b893fca3-d9d5-49b9-9598-60e4c7634f8e","block_type":"box","text":"form of securities that are permissible investments for the Fund. The Fund reserves the right to reject any purchase order, to","page_number":343,"box":{"x":45,"y":197,"width":857,"height":13}},{"id":"1eb9b2be-294e-4e09-9e66-77d341f2b5fb","block_type":"box","text":"modify or waive the minimum initial or subsequent investment requirement and to suspend and resume the sale of any share class","page_number":343,"box":{"x":45,"y":212,"width":900,"height":13}},{"id":"02326ada-57a1-4975-882c-8a9dc3c937cd","block_type":"box","text":"of the Fund at any time.","page_number":343,"box":{"x":46,"y":228,"width":165,"height":13}},{"id":"87cbf6e4-b986-45e7-a4c7-03659993bfd1","block_type":"box","text":"Shareholder Features","page_number":343,"box":{"x":45,"y":262,"width":152,"height":10}},{"id":"aa7a6212-4ab4-4712-9a22-62aeca3c360a","block_type":"box","text":"Exchange Privilege.","page_number":343,"box":{"x":45,"y":290,"width":134,"height":13}},{"id":"410b2a86-0620-4b66-89f7-4e02b3ca29aa","block_type":"box","text":"Unless an exemption applies, a front-end sales charg","page_number":343,"box":{"x":185,"y":290,"width":362,"height":13}},{"id":"09925e9c-fedd-43a5-9f51-e95bf9bbaeb0","block_type":"box","text":"e will be charged in connection with exchanges of Investor","page_number":343,"box":{"x":548,"y":290,"width":405,"height":13}},{"id":"7b209290-9a90-48dd-af59-d6d648d9efc9","block_type":"box","text":"A Shares of WeLEAF for Investor A Shares of one of the funds advised by BlackRock or its affiliates where an initial sales charge","page_number":343,"box":{"x":45,"y":306,"width":894,"height":13}},{"id":"fa2a23fe-64f8-41d7-829c-f39c3b3d773c","block_type":"box","text":"is assessed at the time of purchase of such fund (each, an “Investor A Load BlackRock Fund”). Exchanges of Investor C Shares of","page_number":343,"box":{"x":45,"y":321,"width":900,"height":13}},{"id":"e6740ffd-aebe-4e36-9540-347390dc7107","block_type":"box","text":"WeLEAF for Investor C Shares of a Non-Money Market Portfolio will be exercised at NAV. However, a CDSC will be charged in","page_number":343,"box":{"x":45,"y":337,"width":904,"height":13}},{"id":"217936ae-bf94-4e3b-965c-f0f426ad6013","block_type":"box","text":"connection with the redemption of the Investor C Shares of the Non-Money Market Portfolio received in the exchange.","page_number":343,"box":{"x":45,"y":352,"width":828,"height":13}},{"id":"74a8d460-5a26-4775-bc4c-ed5ab23c187c","block_type":"box","text":"A CDSC of up to 1.00% may apply to certain redemptions of Investor A Shares of WeLEAF purchased in an exchange transaction","page_number":343,"box":{"x":45,"y":377,"width":908,"height":13}},{"id":"eb77c537-5b43-4bc5-83cd-377b5ea28af1","block_type":"box","text":"for Investor A Shares of a portfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of","page_number":343,"box":{"x":45,"y":393,"width":868,"height":13}},{"id":"bab79bd7-7fff-4f3e-868c-889c36156666","block_type":"box","text":"purchase of such Fund (an “Investor A Load-Waived BlackRo","page_number":343,"box":{"x":45,"y":408,"width":431,"height":13}},{"id":"86ce4684-ba7f-439a-8178-557794763e0a","block_type":"box","text":"ck Fund”) as part of an investment of $1,000,000 (lesser amounts","page_number":343,"box":{"x":477,"y":408,"width":457,"height":13}},{"id":"b67437c1-e0ed-45b8-91cc-e7f592e1df0b","block_type":"box","text":"may apply depending on the Investor A Load-Waived BlackRock Fund) or more. The Investor A Shares CDSC is only charged","page_number":343,"box":{"x":45,"y":424,"width":878,"height":13}},{"id":"5268350a-b102-4c14-b28a-fca4d19f78a2","block_type":"box","text":"upon redemptions of Investor A Shares within 18 months after you originally acquired such Investor A Shares of the Investor A","page_number":343,"box":{"x":46,"y":440,"width":883,"height":12}},{"id":"b7e2e6db-8330-4c1c-bb4d-fe6e501584aa","block_type":"box","text":"Load-Waived BlackRock Fund (a shorter holding period may appl","page_number":343,"box":{"x":46,"y":455,"width":460,"height":13}},{"id":"068d504e-8d50-4720-9689-52f9b7846704","block_type":"box","text":"y depending on the Investor A Load-Waived BlackRock Fund),","page_number":343,"box":{"x":507,"y":455,"width":437,"height":13}},{"id":"f1793c11-d809-4115-bef8-a7b7c0336ca6","block_type":"box","text":"unless you qualify for a waiver. There is no CDSC charged on redemptions if you have owned your Investor A Shares for more","page_number":343,"box":{"x":46,"y":471,"width":880,"height":12}},{"id":"e0a40516-91c6-4f26-afbc-2114e6e6c8dd","block_type":"box","text":"than 18 months (or for a shorter holding period, as applicable) as measured from your original purchase of Investor A Shares that","page_number":343,"box":{"x":45,"y":486,"width":901,"height":13}},{"id":"3608c741-ac07-43d6-a885-b21551d4979b","block_type":"box","text":"you exchanged into Investor A Shares of WeLEAF. The deferred sales charge on Investor A Shares is not charged in connection","page_number":343,"box":{"x":45,"y":502,"width":882,"height":12}},{"id":"1f86a56c-f263-43cd-8b5a-896fd6d02b9b","block_type":"box","text":"with: (a) redemptions of Investor A Shares purchased through cert","page_number":343,"box":{"x":45,"y":517,"width":459,"height":13}},{"id":"084e731a-c736-46ba-aa02-58e166b5b7f2","block_type":"box","text":"ain employer-sponsored retirement plans and rollovers of","page_number":343,"box":{"x":505,"y":517,"width":398,"height":13}},{"id":"1ee8717d-04d2-4912-82a0-fc1fd25c7125","block_type":"box","text":"current investments in a Fund through such plans; (b) exchanges pursuant to the exchange privilege described in the Fund’s","page_number":343,"box":{"x":45,"y":533,"width":854,"height":12}},{"id":"ad0bd3ec-59cc-463b-a724-2e339e71ea55","block_type":"box","text":"Prospectus; (c) redemptions made in connection with minimum re","page_number":343,"box":{"x":45,"y":548,"width":457,"height":13}},{"id":"67c0398a-718b-4315-813e-f515fa478b76","block_type":"box","text":"quired distributions due to the shareholder reaching age 72 from","page_number":343,"box":{"x":503,"y":548,"width":448,"height":13}},{"id":"87bd1a38-24e1-4a3d-8579-c1ffd245c2f0","block_type":"box","text":"IRA and 403(b)(7) accounts; (d) redemptions made with respect to certain retirement plans sponsored by BlackRock or its","page_number":343,"box":{"x":45,"y":564,"width":848,"height":12}},{"id":"81e8eadd-2387-444b-9295-0ecd79eaee43","block_type":"box","text":"affiliates; (e) redemptions (i) within one year of a shareholder’s death or, if later, the receipt of a certified probate settlement","page_number":343,"box":{"x":46,"y":579,"width":856,"height":13}},{"id":"e3f94b5f-ad37-432a-915f-c3a3e908d55f","block_type":"box","text":"(including in connection with the distribution of account asset","page_number":343,"box":{"x":46,"y":595,"width":429,"height":12}},{"id":"03a327b9-2f68-4fa9-a721-111cb04f8395","block_type":"box","text":"s to a beneficiary of the decedent) or (ii) in connection with a","page_number":343,"box":{"x":476,"y":595,"width":422,"height":12}},{"id":"54730f67-4161-4f27-9361-5e7a802590e7","block_type":"box","text":"shareholder’s disability (as defined in the Code) subsequent to th","page_number":343,"box":{"x":46,"y":610,"width":447,"height":13}},{"id":"683c2a3a-2369-4815-a837-0fb0ddc07e17","block_type":"box","text":"e purchase of Investor A Shares; (f) involuntary redemptions of","page_number":343,"box":{"x":494,"y":610,"width":437,"height":13}},{"id":"4c22c7a0-32ff-4646-bdda-11ba736d6651","block_type":"box","text":"Investor A Shares in accounts with low balances; (g) certain redemptions made pursuant to the Systematic Withdrawal Plan","page_number":343,"box":{"x":45,"y":626,"width":858,"height":12}},{"id":"2394720e-64ec-4aec-920b-c275b5b2eb5a","block_type":"box","text":"(described below); (h) redemptions related to the payment of B","page_number":343,"box":{"x":46,"y":641,"width":434,"height":13}},{"id":"0d6ec4b4-0b7a-42e5-8218-c73cc8d54a60","block_type":"box","text":"NY Mellon Investment Servicing Trust Company custodial IRA","page_number":343,"box":{"x":481,"y":641,"width":442,"height":13}},{"id":"8addb5db-0924-441c-8fef-a042ab0ae888","block_type":"box","text":"fees; and (i) redemptions when a shareholder can demonstrate hardship, in the absolute discretion of a Fund.","page_number":343,"box":{"x":45,"y":657,"width":753,"height":12}},{"id":"153e9f10-69cf-45bb-bb3f-69ee2b6bf4c7","block_type":"box","text":"A CDSC of 1.00% may apply to certain redemptions of Investor C Shares of WeLEAF. The Investor C Shares CDSC is only","page_number":343,"box":{"x":45,"y":682,"width":862,"height":12}},{"id":"ba0dc55b-bf8c-4efc-9f7d-458f093fae63","block_type":"box","text":"charged upon redemptions of Investor C Shares within one year after you originally acquired the Investor C Shares of the","page_number":343,"box":{"x":45,"y":697,"width":841,"height":13}},{"id":"8e26820b-d61f-4a9e-ad35-50a5f07d1151","block_type":"box","text":"Non-Money Market Portfolio, unless you qualify for a waiver. There is no CDSC charged on redemptions if you have owned your","page_number":343,"box":{"x":45,"y":713,"width":908,"height":12}},{"id":"63ff4a93-bb03-4dc7-bd55-887fd43c73e7","block_type":"box","text":"Investor C Shares for more than one year (as measured from your original purchase of Investor C Shares that you exchanged into","page_number":343,"box":{"x":45,"y":728,"width":897,"height":13}},{"id":"f86e5dad-7691-4d8e-a49d-27d97e6cf90d","block_type":"box","text":"Investor C Shares of WeLEAF). In determining whether an Investor","page_number":343,"box":{"x":45,"y":744,"width":468,"height":12}},{"id":"a262ec5d-a671-4714-9f3c-fde6ce19701c","block_type":"box","text":"C Shares CDSC is applicable to a redemption, the calculation","page_number":343,"box":{"x":518,"y":744,"width":425,"height":12}},{"id":"6775b31a-307e-457f-94ae-9ad06e52ee1a","block_type":"box","text":"will be determined in the manner that results in the lowest possible rate being charged. The charge will be assessed on an amount","page_number":343,"box":{"x":45,"y":759,"width":896,"height":13}},{"id":"5ce4b306-696d-4fa1-bc94-3daafbcc8f3c","block_type":"box","text":"equal to the lesser of the proceeds of redemption or the cost of","page_number":343,"box":{"x":46,"y":775,"width":433,"height":12}},{"id":"ca3d9862-73ba-4c43-8ce1-32426880178c","block_type":"box","text":"the shares being redeemed. Accordingly, no CDSC will be imposed","page_number":343,"box":{"x":483,"y":775,"width":463,"height":12}},{"id":"7fc21c60-3702-4a1a-8133-71ce6a312ee9","block_type":"box","text":"on increases in NAV above the initial purchase price of Investor C Shares. In addition, no CDSC will be assessed on Investor C","page_number":343,"box":{"x":46,"y":790,"width":879,"height":13}},{"id":"8abbfa70-aa1d-40bf-b65d-9d8f3033fc2b","block_type":"box","text":"Shares acquired through reinvestment of dividends. It will be assumed that the redemption is first of shares held for over one year","page_number":343,"box":{"x":46,"y":806,"width":896,"height":12}},{"id":"20a342a6-37f4-4232-b992-b5b83380a10f","block_type":"box","text":"or shares acquired pursuant to reinvestment of dividends and then of shares held longest during the one-year period. A transfer of","page_number":343,"box":{"x":46,"y":821,"width":899,"height":13}},{"id":"db47bb52-be45-4a7e-b2ab-054c9b76b7e3","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 redemption.","page_number":343,"box":{"x":46,"y":837,"width":824,"height":12}},{"id":"c79d5145-830f-4ff0-b2a8-f844492038f9","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of the Fund’s SAI for information about amounts","page_number":343,"box":{"x":46,"y":862,"width":902,"height":12}},{"id":"15e96d82-226f-4bba-a606-135264553577","block_type":"box","text":"paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":343,"box":{"x":45,"y":877,"width":565,"height":13}},{"id":"c81fc341-fbb8-4351-b8df-eca21222a177","block_type":"box","text":"II-39","page_number":343,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"85c280f3-d34c-4f60-b3d4-78bcd1bdcba0","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":343,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"187fae88-42cd-4baa-8bae-b9d3d456a451","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares purchased through","page_number":344,"box":{"x":45,"y":79,"width":859,"height":13}},{"id":"5ad97479-cc99-4694-9a92-e32e249c33e1","block_type":"box","text":"certain employer-sponsored retirement plans and fee-based programs previously approved by certain Funds and rollovers of","page_number":344,"box":{"x":45,"y":94,"width":860,"height":13}},{"id":"46d13595-4a7d-4e36-8b29-55b4a9d98770","block_type":"box","text":"current investments in the Fund through such plans; (2) exchanges pursuant to the exchange privilege described in the Fund’s","page_number":344,"box":{"x":45,"y":110,"width":867,"height":13}},{"id":"9a51f1c8-eefe-44a7-8c59-e0131ba06648","block_type":"box","text":"Prospectus; (3) redemptions made in connection with minimum re","page_number":344,"box":{"x":45,"y":125,"width":459,"height":13}},{"id":"292edf16-f504-4964-9443-ff2514c7acc5","block_type":"box","text":"quired distributions due to the shareholder reaching age 72 from","page_number":344,"box":{"x":505,"y":125,"width":448,"height":13}},{"id":"0ae6a873-1fe7-49e4-a321-ca843b22fe04","block_type":"box","text":"IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain retirement plans sponsored by BlackRock or its","page_number":344,"box":{"x":45,"y":141,"width":848,"height":13}},{"id":"e1af3aad-3859-4ebd-816f-934aa7df9a3a","block_type":"box","text":"affiliates; (5) redemptions in connection with a shareholder’s death as long as the waiver request is made within one year of death","page_number":344,"box":{"x":46,"y":156,"width":897,"height":13}},{"id":"ac4346ce-e6c2-49b3-8487-5b2863a1a157","block_type":"box","text":"or, if later, reasonably promptly following completion of probate","page_number":344,"box":{"x":46,"y":172,"width":451,"height":13}},{"id":"388f680b-6736-444b-bf51-ab66550398e1","block_type":"box","text":"(including in connection with the distribution of account assets","page_number":344,"box":{"x":503,"y":172,"width":435,"height":13}},{"id":"73f493b6-d7e3-40d8-bf68-9660403d5232","block_type":"box","text":"to a beneficiary of the decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares;","page_number":344,"box":{"x":45,"y":187,"width":820,"height":13}},{"id":"8538bef1-0877-412e-b6e1-e2228989e8d9","block_type":"box","text":"(6) withdrawals resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":344,"box":{"x":46,"y":203,"width":867,"height":13}},{"id":"3a198a8d-cb49-4015-9e76-4728a0a52d4f","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described in","page_number":344,"box":{"x":45,"y":218,"width":821,"height":13}},{"id":"a677d605-711c-46b7-ab53-afc12b843626","block_type":"box","text":"“Redemption of Shares” below; (8) redemptions made pursuan","page_number":344,"box":{"x":47,"y":234,"width":438,"height":13}},{"id":"4841da4c-faa8-4da9-8835-df88e5963187","block_type":"box","text":"t to a systematic withdrawal plan, subject to the limitations set","page_number":344,"box":{"x":485,"y":234,"width":435,"height":13}},{"id":"daf1a0fa-eb7a-49dc-95f7-f75be707ccc8","block_type":"box","text":"forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY Mellon Investment Servicing","page_number":344,"box":{"x":45,"y":249,"width":885,"height":13}},{"id":"43ece62e-f498-49a6-b71d-ecebb0a937d7","block_type":"box","text":"Trust Company custodial IRA fees; and (10) redemptions when a share","page_number":344,"box":{"x":45,"y":265,"width":495,"height":13}},{"id":"f79f3b17-fbcd-4af0-8433-b4a9f8ee471d","block_type":"box","text":"holder can demonstrate hardship, in the absolute discretion","page_number":344,"box":{"x":541,"y":265,"width":411,"height":13}},{"id":"89ef704b-1b76-4279-8a6a-c84ed81f3035","block_type":"box","text":"of the Fund. In addition, no CDSC is charged on Investor C S","page_number":344,"box":{"x":46,"y":280,"width":426,"height":13}},{"id":"a9e0d0bb-0f09-4fdd-a3ca-7e6b500b6f7f","block_type":"box","text":"hares acquired through the reinvestment of dividends or","page_number":344,"box":{"x":473,"y":280,"width":388,"height":13}},{"id":"0c98e8ac-564d-49cb-b9a8-aee9e096a478","block_type":"box","text":"distributions.","page_number":344,"box":{"x":46,"y":296,"width":90,"height":10}},{"id":"bc2da5da-82db-45dc-9b4a-1bb5e2f7f468","block_type":"box","text":"WeLEAF has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020, Investor C Shares","page_number":344,"box":{"x":45,"y":319,"width":876,"height":13}},{"id":"852014e0-b4e7-46a7-8637-ddbe7d642b91","block_type":"box","text":"held for approximately eight years will be converted into Investor A Shares, as set forth in the Fund’s Prospectus. In addition,","page_number":344,"box":{"x":45,"y":335,"width":868,"height":12}},{"id":"301484d5-ee08-4def-aedf-b94d7c946071","block_type":"box","text":"accounts that do not have a financial intermediary associated with them are not eligible to hold Investor C Shares, and any","page_number":344,"box":{"x":46,"y":350,"width":850,"height":13}},{"id":"b76703b6-4f32-4821-9d9f-81dc56a63d99","block_type":"box","text":"Investor C Shares held in such accounts will be automatically converted to Investor A Shares.","page_number":344,"box":{"x":45,"y":366,"width":645,"height":12}},{"id":"685513ca-5baf-4f12-9e54-8ac58d4265c6","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be","page_number":344,"box":{"x":46,"y":389,"width":467,"height":13}},{"id":"5e80176e-60a3-47d9-a68c-18060d184125","block_type":"box","text":"available to customers of certain financial intermediaries, as","page_number":344,"box":{"x":518,"y":389,"width":414,"height":12}},{"id":"f3da5f30-357b-4a6e-9a86-c7c1cdda133c","block_type":"box","text":"described under “Intermediary-Defined Sales Charge Waiver Polic","page_number":344,"box":{"x":46,"y":404,"width":458,"height":13}},{"id":"6d22d3fd-0af2-4a32-a340-c9059c6a657b","block_type":"box","text":"ies” in the Fund’s Prospectus. Please speak to your financial","page_number":344,"box":{"x":505,"y":404,"width":413,"height":13}},{"id":"58a21e51-d2a4-42b4-a644-d41c9b43cc6b","block_type":"box","text":"intermediary for more information.","page_number":344,"box":{"x":45,"y":420,"width":245,"height":13}},{"id":"5347316c-9b2f-42c2-98ac-2ad625022a45","block_type":"box","text":"Investor A Shares of the Fund that were (1) acquired through the use of the exchange privilege and (2) can be traced back to a","page_number":344,"box":{"x":45,"y":443,"width":874,"height":13}},{"id":"6f01f6d9-df92-407c-907b-a39efd8d129d","block_type":"box","text":"purchase of shares in one or more investment portfolios of the Fund for which a sales charge was paid, can be exchanged for","page_number":344,"box":{"x":45,"y":459,"width":865,"height":12}},{"id":"7949ed3e-943a-44ff-afeb-40d617359678","block_type":"box","text":"Investor A Shares of the Fund subject to a sales charge.","page_number":344,"box":{"x":45,"y":474,"width":380,"height":13}},{"id":"fa71810c-8272-446a-8228-f453d5f4e1f0","block_type":"box","text":"A shareholder wishing to make an exchange may do so by sending a written request to the Fund at the following address:","page_number":344,"box":{"x":45,"y":497,"width":843,"height":13}},{"id":"daef70e8-5de2-4ba8-8a1a-365cb9d22476","block_type":"box","text":"BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are automatically provided with telephone","page_number":344,"box":{"x":46,"y":513,"width":873,"height":13}},{"id":"884f11fe-a056-445a-a3dd-63a655f4b552","block_type":"box","text":"exchange privileges when opening an account, unless they indicate on the Application that they do not wish to use this privilege.","page_number":344,"box":{"x":46,"y":528,"width":888,"height":13}},{"id":"8f8dd2af-c5b9-4705-964d-4277c2eb1f9c","block_type":"box","text":"To add this feature to an existing account that previously did not provide this option, a request must be made in writing or by","page_number":344,"box":{"x":45,"y":544,"width":875,"height":13}},{"id":"2ace301c-7cf2-4496-ac64-1ec2a156b8b7","block_type":"box","text":"telephone. Once this election has been made, the sharehol","page_number":344,"box":{"x":45,"y":559,"width":400,"height":13}},{"id":"767f4533-ccee-481d-9eca-c9e6d09e356b","block_type":"box","text":"der may simply contact the Fund by telephone at (800) 441-7762 to","page_number":344,"box":{"x":446,"y":559,"width":472,"height":13}},{"id":"fd458051-aef7-4d55-a154-4d8474cf4f0c","block_type":"box","text":"request the exchange. During periods of substantial economic or market change, telephone exchanges may be difficult to complete","page_number":344,"box":{"x":45,"y":575,"width":904,"height":13}},{"id":"63ec0007-da11-4e13-86a8-dbb59eb19305","block_type":"box","text":"and shareholders may have to submit exchange requests in writing.","page_number":344,"box":{"x":46,"y":590,"width":464,"height":13}},{"id":"5ded8612-d38a-466b-bf04-ba0b6da09346","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being acquired, a new","page_number":344,"box":{"x":45,"y":614,"width":887,"height":12}},{"id":"90e60217-63d1-4922-ab4b-8303d63f3e76","block_type":"box","text":"account will be established with the same registration, dividend and capital gain options and broker of record as the account from","page_number":344,"box":{"x":46,"y":629,"width":901,"height":13}},{"id":"c5d7c837-9499-4b70-93aa-7771765f7ee6","block_type":"box","text":"which shares are exchanged, unless otherwise specified in writing b","page_number":344,"box":{"x":45,"y":645,"width":465,"height":12}},{"id":"c131d3a4-f211-4122-8fb0-85c2e43b94ff","block_type":"box","text":"y the shareholder with all signatures guaranteed by an eligible","page_number":344,"box":{"x":511,"y":645,"width":428,"height":12}},{"id":"4d9f4c6e-7882-41e2-8442-af18d5db8d3c","block_type":"box","text":"guarantor institution. In order to participate in the Automatic In","page_number":344,"box":{"x":45,"y":660,"width":447,"height":13}},{"id":"1c142689-585c-45f2-a25f-92499e8b04d7","block_type":"box","text":"vestment Program or establish a Systematic Withdrawal Plan for","page_number":344,"box":{"x":492,"y":660,"width":448,"height":13}},{"id":"47d683e0-6386-49e0-b55d-1450682fcbe5","block_type":"box","text":"the new account, however, an exchanging shareholder must file a specific written request.","page_number":344,"box":{"x":45,"y":676,"width":621,"height":12}},{"id":"fc0a7104-5fd4-4399-9735-9033e4d63485","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and must be legally","page_number":344,"box":{"x":45,"y":699,"width":875,"height":13}},{"id":"fa792f83-a612-4206-995b-3580c115889b","block_type":"box","text":"available for sale in the state of the investor’s residence. For Fed","page_number":344,"box":{"x":46,"y":714,"width":441,"height":10}},{"id":"d3ab5997-1bb9-4771-8cb2-a92fb72909d6","block_type":"box","text":"eral income tax purposes, a share exchange is a taxable event and,","page_number":344,"box":{"x":488,"y":714,"width":458,"height":13}},{"id":"b929eed3-6753-4e99-beea-0bbe3d1ea774","block_type":"box","text":"accordingly, a capital gain or loss may be realized. Before making an exchange request, shareholders should consult a tax or other","page_number":344,"box":{"x":46,"y":730,"width":900,"height":13}},{"id":"1acce2f5-6197-44e4-8e45-30ec57cf0031","block_type":"box","text":"financial adviser and should consider the investment objective, policies and restrictions of the investment portfolio into which the","page_number":344,"box":{"x":45,"y":745,"width":895,"height":13}},{"id":"8ed51d4c-8ad0-4662-abed-ced6843b348c","block_type":"box","text":"shareholder is making an exchange. Brokers may charge a fee for handling exchanges.","page_number":344,"box":{"x":46,"y":761,"width":595,"height":13}},{"id":"89e4a64b-97a2-42b6-a949-bb8bca59c48c","block_type":"box","text":"The Fund reserves the right to suspend, modify or terminate t","page_number":344,"box":{"x":45,"y":784,"width":426,"height":13}},{"id":"b1251583-b22f-4fc3-ae18-b4f8af290a36","block_type":"box","text":"he exchange privilege at any time. Notice will be given to","page_number":344,"box":{"x":472,"y":784,"width":395,"height":13}},{"id":"52583939-7bae-4fa2-8c93-d6957dcfc24c","block_type":"box","text":"shareholders of any material modification or termination ex","page_number":344,"box":{"x":46,"y":800,"width":416,"height":13}},{"id":"0a931e53-5703-4a53-88dd-e1bbc62b5fa2","block_type":"box","text":"cept where notice is not required. The Fund reserves the right to reject","page_number":344,"box":{"x":462,"y":800,"width":485,"height":13}},{"id":"667ec022-c4d5-40f5-b86f-7ca28449a9bd","block_type":"box","text":"any telephone exchange request. Telephone exchanges may be subject to limitations as to amount or frequency, and to other","page_number":344,"box":{"x":46,"y":815,"width":863,"height":13}},{"id":"95c7e786-4ab6-4a71-9d14-79989648033f","block_type":"box","text":"restrictions that may be established from time to time to ensure that exchanges do not operate to the disadvantage of any portfolio","page_number":344,"box":{"x":45,"y":831,"width":905,"height":13}},{"id":"0a365baf-5d14-4775-a06f-cf4ac9eb0a14","block_type":"box","text":"or its shareholders. The Fund, the Administrator and BRIL will employ reasonable procedures to confirm that instructions","page_number":344,"box":{"x":46,"y":846,"width":848,"height":13}},{"id":"49052a76-2494-4020-94d7-40981a82e66c","block_type":"box","text":"communicated by telephone are genuine. The Fund, the Trust, the Administrator and BRIL will not be liable for any loss, liability,","page_number":344,"box":{"x":45,"y":862,"width":903,"height":13}},{"id":"56a0c4b4-f885-46b0-8170-df209efac2d4","block_type":"box","text":"cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with such procedures.","page_number":344,"box":{"x":45,"y":877,"width":869,"height":13}},{"id":"4dd302aa-1420-4e88-b237-e3287df0fbf1","block_type":"box","text":"II-40","page_number":344,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"70399f2b-2ed1-476d-bfe5-2673dba682ef","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":344,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d9ff116c-3032-4d1d-9397-7860e61109a2","block_type":"box","text":"By use of the exchange privilege, the investor authorizes the Fund’s transfer agent to act on telephonic or written exchange","page_number":345,"box":{"x":46,"y":79,"width":848,"height":13}},{"id":"34964374-469d-4f9b-b63e-2ebfdf8c47e9","block_type":"box","text":"instructions from any person representing him-or herself to be the investor and believed by the Fund’s transfer agent to be genuine.","page_number":345,"box":{"x":45,"y":94,"width":906,"height":13}},{"id":"1af0de67-e58b-4887-b49a-62290da0fe44","block_type":"box","text":"The records of the Fund’s transfer agent pertaining to such instru","page_number":345,"box":{"x":45,"y":110,"width":452,"height":13}},{"id":"3c1729dd-0d54-4abf-9996-75a5baa3bc11","block_type":"box","text":"ctions are binding. The exchange privilege may be modified or","page_number":345,"box":{"x":497,"y":110,"width":432,"height":13}},{"id":"54c69d55-a3e3-435d-9b77-655078120ade","block_type":"box","text":"terminated at any time upon 60 days’ notice to affected sharehol","page_number":345,"box":{"x":45,"y":125,"width":447,"height":13}},{"id":"841b17e0-9d79-484f-9ac4-db60908d7005","block_type":"box","text":"ders. The exchange privilege is only available in states where the","page_number":345,"box":{"x":493,"y":125,"width":445,"height":13}},{"id":"abae0366-1691-48f8-851f-deb3d9c9e90e","block_type":"box","text":"exchange may legally be made.","page_number":345,"box":{"x":46,"y":141,"width":213,"height":13}},{"id":"a8b6b43c-ad7c-4785-9032-b0a2c4f67cce","block_type":"box","text":"The redemption of shares of one fund and the subsequent investment in another fund generally will be treated as two separate","page_number":345,"box":{"x":45,"y":162,"width":874,"height":13}},{"id":"fddb149f-7183-41ff-ac7f-71afdf7eb86e","block_type":"box","text":"transactions. Therefore, a front-end sales charge will be impo","page_number":345,"box":{"x":45,"y":178,"width":425,"height":13}},{"id":"e66d537c-3511-479e-a372-448cc5794ec3","block_type":"box","text":"sed (unless an exemption applies) on the purchase of Investor A or","page_number":345,"box":{"x":471,"y":178,"width":460,"height":13}},{"id":"38e1d81f-eced-442a-9b89-c4014afc2db3","block_type":"box","text":"Investor A1 Shares of an Investor A Load BlackRock Fund with the proceeds of a redemption of Investor Shares of WeLEAF. In","page_number":345,"box":{"x":45,"y":193,"width":889,"height":13}},{"id":"399d02a6-2459-4fa5-8b2e-48e5598e91bd","block_type":"box","text":"addition, when Investor Shares of WeLEAF are redeemed and the proceeds are used to purchase Investor C Shares of a","page_number":345,"box":{"x":46,"y":209,"width":822,"height":13}},{"id":"edc93e24-8a04-4795-af69-93a92a6dcfeb","block_type":"box","text":"Non-Money Market Portfolio, a CDSC will be imposed (unless an exemption applies) when the Investor C Shares of the","page_number":345,"box":{"x":45,"y":224,"width":836,"height":13}},{"id":"38bc657e-4536-4ee7-a087-8e86d884a0e8","block_type":"box","text":"Non-Money Market Portfolio are redeemed.","page_number":345,"box":{"x":45,"y":240,"width":310,"height":13}},{"id":"cac7dff9-4145-4f73-a137-aebb342ea2db","block_type":"box","text":"Automatic Investment Plan (“AIP”).","page_number":345,"box":{"x":45,"y":261,"width":252,"height":13}},{"id":"05165470-211c-496f-8388-7c31f0254092","block_type":"box","text":"Certain shareholders may arrange for periodic investments in the Fund through automatic","page_number":345,"box":{"x":303,"y":261,"width":624,"height":13}},{"id":"bc30e9ec-c5eb-40b8-b8a2-6773a819ce23","block_type":"box","text":"deductions from a checking or savings account by completing the AIP Application which may be obtained from the Fund at","page_number":345,"box":{"x":46,"y":277,"width":858,"height":13}},{"id":"87c1121c-4e84-434e-aa4e-53771460efcd","block_type":"box","text":"(800) 441-7762, or online at www.blackrock.com. The minimum pre-authorized investment amount is $50 per Fund.","page_number":345,"box":{"x":46,"y":292,"width":818,"height":13}},{"id":"f6ffe344-04e9-4106-9488-d99cb679e4d2","block_type":"box","text":"Systematic Withdrawal Plan (“SWP”).","page_number":345,"box":{"x":46,"y":314,"width":266,"height":13}},{"id":"c1ebadc2-5e9b-42d5-9afe-76c7dfa3923b","block_type":"box","text":"WeLEAF offers a Systematic Withdrawal Plan to shareholders who wish to receive regular","page_number":345,"box":{"x":317,"y":314,"width":627,"height":13}},{"id":"cd1bccb4-4d40-4aee-a0a8-88f902d51611","block_type":"box","text":"distributions from their accounts. Upon commencement of the","page_number":345,"box":{"x":46,"y":329,"width":432,"height":13}},{"id":"7b2f2963-551c-4f39-a857-b4fc13802c02","block_type":"box","text":"SWP, the account must have a current value of $10,000 or more in","page_number":345,"box":{"x":483,"y":329,"width":465,"height":13}},{"id":"5de83943-703a-44a5-b5a7-0ed4986b250e","block_type":"box","text":"the Fund. Shareholders may elect to receive automatic cash payments of $50 or more at any interval. You may choose any day for","page_number":345,"box":{"x":45,"y":345,"width":903,"height":13}},{"id":"e96127a5-4658-48c1-a914-46cc440dc2d3","block_type":"box","text":"the withdrawal. If no day is specified, the withdrawals will be processed on the 25th day of the month or, if such day is not a","page_number":345,"box":{"x":45,"y":360,"width":867,"height":13}},{"id":"d5d697ba-c860-4222-865a-4bfc5567724a","block_type":"box","text":"Business Day, on the prior Business Day and are paid promptly thereafter. An investor may utilize the SWP by completing the","page_number":345,"box":{"x":46,"y":376,"width":871,"height":13}},{"id":"dfffe558-4939-4b38-a8cd-bcf6d746da04","block_type":"box","text":"Systematic Withdrawal Plan Application Form which may be obtained by calling the Fund or by visiting our website at","page_number":345,"box":{"x":46,"y":391,"width":826,"height":13}},{"id":"492a7bc9-3b9f-49e1-9b82-c4335b079be0","block_type":"box","text":"www.blackrock.com.","page_number":345,"box":{"x":45,"y":407,"width":149,"height":10}},{"id":"5d4d58a4-ea96-40b2-a138-9a8843855203","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income di","page_number":345,"box":{"x":46,"y":428,"width":448,"height":10}},{"id":"ed40ec4a-8a56-4a29-8097-ace7add972d3","block_type":"box","text":"vidends their invested principal in the account will be depleted.","page_number":345,"box":{"x":495,"y":428,"width":435,"height":13}},{"id":"d1b49564-35b7-4e63-8492-7fc6b48224e8","block_type":"box","text":"To participate in the SWP, shareholders must have their dividends automatically reinvested. Shareholders may change or cancel","page_number":345,"box":{"x":45,"y":444,"width":884,"height":13}},{"id":"89083e7d-f77a-4960-9f15-7f92b7582dea","block_type":"box","text":"the SWP at any time, upon written notice to the Fund, or by calling the Fund at (800) 441-7762.","page_number":345,"box":{"x":45,"y":459,"width":670,"height":13}},{"id":"e1d8de2b-104e-4fd2-8de2-6e51dc830d55","block_type":"box","text":"For this reason, a shareholder may not participate in the Autom","page_number":345,"box":{"x":45,"y":481,"width":443,"height":13}},{"id":"87bfbcfa-4500-4e5d-b3bb-ea87cc7162c0","block_type":"box","text":"atic Investment Plan (see “Account Services and Privileges —","page_number":345,"box":{"x":489,"y":481,"width":421,"height":13}},{"id":"7db8973d-0e82-41ab-92f8-56448947e16f","block_type":"box","text":"Automatic Investment Plan” in the Fund’s Prospectus) and the Systematic Withdrawal Plan at the same time.","page_number":345,"box":{"x":45,"y":496,"width":755,"height":13}},{"id":"140e57d9-3f4b-40ce-8e7c-26d29bd91b69","block_type":"box","text":"Dividend Allocation Plan.","page_number":345,"box":{"x":45,"y":518,"width":179,"height":10}},{"id":"df543cda-ef2a-4d13-b50b-4afbf2c1d8a6","block_type":"box","text":"The Dividend Allocation Plan allows shareholders to elect to have all their dividends and any other","page_number":345,"box":{"x":229,"y":518,"width":687,"height":13}},{"id":"c91dba1a-6ff4-4d6c-a858-bd310ddff83b","block_type":"box","text":"distributions from WeLEAF or any Eligible Fund (which include","page_number":345,"box":{"x":46,"y":533,"width":445,"height":13}},{"id":"82c9b3ae-17e1-4bc7-a251-1517872e0b57","block_type":"box","text":"s the Fund and other funds as designated by BRIL from time to","page_number":345,"box":{"x":492,"y":533,"width":438,"height":13}},{"id":"3a5123ea-996c-4397-b24f-81338ce14d49","block_type":"box","text":"time) automatically invested at NAV in one other such Eligible","page_number":345,"box":{"x":45,"y":549,"width":435,"height":13}},{"id":"aac491fd-b1bd-4e8c-bbb7-5b1b53b5b90f","block_type":"box","text":"Fund designated by the shareholder, provided the account into","page_number":345,"box":{"x":485,"y":549,"width":434,"height":13}},{"id":"c62c2c2d-062f-49fa-9f49-4726503c98c7","block_type":"box","text":"which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":345,"box":{"x":45,"y":564,"width":730,"height":13}},{"id":"5f1a6224-8c40-4b61-8355-d2d04e20fea5","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares.","page_number":345,"box":{"x":46,"y":586,"width":372,"height":10}},{"id":"04ed577f-43ab-45fb-8022-5599e227d655","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight","page_number":345,"box":{"x":424,"y":586,"width":509,"height":13}},{"id":"ede7b104-1f36-4a0a-bcbf-f6c34d88c85b","block_type":"box","text":"years after purchase, Investor C Shares of WeLEAF will convert automatically into Investor A Shares of WeLEAF (the “Investor C","page_number":345,"box":{"x":45,"y":601,"width":904,"height":13}},{"id":"2393e972-552f-478e-8618-75bf1681cdd0","block_type":"box","text":"8-Year Conversion”). It is the financial intermediary’s responsib","page_number":345,"box":{"x":46,"y":617,"width":443,"height":13}},{"id":"5390472a-cf34-48e3-b1e7-61009b6f50d8","block_type":"box","text":"ility to ensure that the shareholder is credited with the proper","page_number":345,"box":{"x":490,"y":617,"width":425,"height":13}},{"id":"3a68d295-0b89-4f31-acc5-bb8e3df10896","block_type":"box","text":"holding period. As of the Effective Date, certain financial intermed","page_number":345,"box":{"x":45,"y":632,"width":461,"height":13}},{"id":"a4c70308-8ff7-4e5b-a6d3-41eb14c23890","block_type":"box","text":"iaries, including group retirement recordkeeping platforms, may","page_number":345,"box":{"x":507,"y":632,"width":444,"height":13}},{"id":"6c3301bd-baea-43ea-854a-c867b603a480","block_type":"box","text":"not have been tracking such holding periods and therefore may not be able to process such conversions. In such instances,","page_number":345,"box":{"x":45,"y":648,"width":845,"height":13}},{"id":"15431ffc-c216-4beb-a2de-96ff371c59a8","block_type":"box","text":"Investor C Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after the","page_number":345,"box":{"x":45,"y":663,"width":897,"height":13}},{"id":"8f54e6fd-88f1-4910-b023-5b002de6ab79","block_type":"box","text":"Effective Date. 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The Investor C Conversions will not be deemed a purchase or sale of the shares for U.S. federal income tax","page_number":345,"box":{"x":46,"y":831,"width":856,"height":12}},{"id":"44216f78-788e-47f0-92c1-7d72035316c6","block_type":"box","text":"purposes. Shares acquired through reinvestment of dividends on Investor C Shares will also convert automatically to Investor A","page_number":345,"box":{"x":45,"y":846,"width":884,"height":13}},{"id":"7a80cfcd-3e16-41ce-9474-b1585b4cf01c","block_type":"box","text":"Shares, as set forth in WeLEAF’s Prospectus. 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clients of financial int","page_number":346,"box":{"x":46,"y":269,"width":461,"height":12}},{"id":"215c4406-12a0-4bac-a59f-6bff0d1b2518","block_type":"box","text":"ermediaries that: (i) charge such clients a fee for advisory,","page_number":346,"box":{"x":507,"y":269,"width":398,"height":13}},{"id":"92b97746-7128-4a0d-bdab-b47b5c9e4e2b","block_type":"box","text":"investment consulting, or similar services or (ii) have entered in","page_number":346,"box":{"x":45,"y":284,"width":437,"height":13}},{"id":"9ca1d845-1654-4729-bab2-7931bc5a8943","block_type":"box","text":"to an agreement with the Distributor to offer Institutional Shares","page_number":346,"box":{"x":482,"y":284,"width":450,"height":13}},{"id":"0aff8cb6-b047-40f2-8648-6b041a0c5268","block_type":"box","text":"through a no-load program or investment platform, in each case, with no minimum initial investment; clients investing through","page_number":346,"box":{"x":45,"y":300,"width":883,"height":13}},{"id":"570007f4-9e16-4f0c-b532-fecedd401f5e","block_type":"box","text":"financial intermediaries that have entered","page_number":346,"box":{"x":45,"y":315,"width":286,"height":10}},{"id":"41618b29-f279-435b-b4b2-e7831ef1219d","block_type":"box","text":"into an agreement with the Distributor to offer such shares on a platform that charges a","page_number":346,"box":{"x":336,"y":315,"width":609,"height":13}},{"id":"a6305293-ea43-416e-b20e-d98acfb8fd2b","block_type":"box","text":"transaction based sales commission outside of the Fund, with a minimum initial investment of $1,000; 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and holders of certain BofA Corp. sponsored","page_number":346,"box":{"x":46,"y":408,"width":453,"height":13}},{"id":"94e1db98-4daa-49ae-b2d8-b88e9bc8a613","block_type":"box","text":"unit investment trusts (UITs) who reinvest dividends received","page_number":346,"box":{"x":504,"y":408,"width":423,"height":13}},{"id":"78513e51-a300-44a2-9c1c-72f351578e40","block_type":"box","text":"from such UITs in shares of the Fund.","page_number":346,"box":{"x":45,"y":424,"width":262,"height":10}},{"id":"d52c4a11-e2ce-47f8-9c29-b24232d3728a","block_type":"box","text":"The Fund may in its discretion waive or modify any minimum investment amount, may reject any order for any class of shares","page_number":346,"box":{"x":45,"y":448,"width":878,"height":12}},{"id":"7216a4ae-2f8f-40f2-bb6c-b84345b983a3","block_type":"box","text":"and may suspend and resume the sale of shares of the Fund at any time.","page_number":346,"box":{"x":46,"y":463,"width":496,"height":13}},{"id":"0b13107d-9547-473d-8fe5-fbf563865a04","block_type":"box","text":"Institutional Shares of the Fund may be purchased by customers of broker-dealers and agents that have established a servicing","page_number":346,"box":{"x":45,"y":487,"width":873,"height":13}},{"id":"8e791cac-974a-4279-b224-781433a4e08d","block_type":"box","text":"relationship with the Fund on behalf of their customers. These broker-dealers and agents may impose additional or different","page_number":346,"box":{"x":45,"y":502,"width":861,"height":13}},{"id":"35cba62b-4acf-4aa8-8f58-525477f13553","block_type":"box","text":"conditions on the purchase or redemption of Fund shares by their c","page_number":346,"box":{"x":45,"y":518,"width":466,"height":13}},{"id":"03644317-2bdf-4e91-a4a5-dcd10907281e","block_type":"box","text":"ustomers and may charge their customers transaction, account","page_number":346,"box":{"x":512,"y":518,"width":433,"height":13}},{"id":"3914adcd-3708-4be4-9d3d-98247e40d5af","block_type":"box","text":"or other fees on the purchase and redemption of Fund shares. Each broker-dealer or agent is responsible for transmitting to its","page_number":346,"box":{"x":46,"y":533,"width":874,"height":13}},{"id":"fcf9ea16-3be1-4e6b-b0e2-0edde4061182","block_type":"box","text":"customers a schedule of any such fees and information regarding any additional or different conditions regarding purchases and","page_number":346,"box":{"x":45,"y":549,"width":887,"height":13}},{"id":"fb11ff94-dd83-41f6-b8ac-7df0445b6b18","block_type":"box","text":"redemptions. 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If payment for a","page_number":346,"box":{"x":45,"y":635,"width":870,"height":13}},{"id":"9e30a6c5-afbf-40af-b561-3c015b7f7189","block_type":"box","text":"purchase order is not received by the prescribed time, an investor ma","page_number":346,"box":{"x":45,"y":650,"width":477,"height":13}},{"id":"76b7ce71-2415-476a-94f6-a2d9b3d8b67b","block_type":"box","text":"y be liable for any resulting losses or expenses incurred by the","page_number":346,"box":{"x":522,"y":650,"width":427,"height":13}},{"id":"4de85644-edc6-46e0-a4aa-2faeb4217fbf","block_type":"box","text":"Fund.","page_number":346,"box":{"x":45,"y":666,"width":39,"height":10}},{"id":"2f41a713-ffb3-4706-bacc-6e3b5055a8c6","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a financial","page_number":346,"box":{"x":45,"y":690,"width":819,"height":12}},{"id":"85d29c63-7e12-42c6-ae90-c598d3b9ab52","block_type":"box","text":"intermediary’s policies and procedures, exchange shares of the Fund from one class of shares to another class of shares of the","page_number":346,"box":{"x":45,"y":705,"width":866,"height":13}},{"id":"abcf2a08-fba6-4f8a-af79-1bc365de2a1d","block_type":"box","text":"Fund, provided that the exchanged shares are not subject to a C","page_number":346,"box":{"x":45,"y":721,"width":443,"height":13}},{"id":"c50f4134-bdce-42be-828e-51c6a7903a44","block_type":"box","text":"DSC and that shareholders meet eligibility requirements of the","page_number":346,"box":{"x":489,"y":721,"width":432,"height":13}},{"id":"dcbf726c-d0d6-4a3e-872d-9bcee22f5e50","block_type":"box","text":"new share class. Please speak to your financial intermediary fo","page_number":346,"box":{"x":45,"y":736,"width":432,"height":13}},{"id":"1eccc3de-f331-4666-b5df-4d24c31035ce","block_type":"box","text":"r information about specific policies and procedures applicable to","page_number":346,"box":{"x":478,"y":736,"width":454,"height":13}},{"id":"62575747-cd72-40fa-875c-96e681b8a4da","block_type":"box","text":"your account.","page_number":346,"box":{"x":45,"y":755,"width":95,"height":10}},{"id":"7408cc0d-9a44-483c-bc79-a3d36ab91a06","block_type":"box","text":"Purchase Privileges of Certain Persons","page_number":346,"box":{"x":45,"y":776,"width":263,"height":12}},{"id":"c92abb43-0374-4337-9d96-1f731a7498bf","block_type":"box","text":".","page_number":346,"box":{"x":309,"y":784,"width":3,"height":2}},{"id":"d7b8cf9c-e7df-4920-b06d-ddf4fd6fd65f","block_type":"box","text":"Employees, officers, directors/trustees of Blac","page_number":346,"box":{"x":318,"y":776,"width":312,"height":12}},{"id":"c3adba25-a986-461a-babe-271a67a14457","block_type":"box","text":"kRock, Inc., BlackRock Funds, BofA Corp.,","page_number":346,"box":{"x":631,"y":776,"width":304,"height":12}},{"id":"c5dbfe32-6e87-4361-bdc3-e3e67a715b2c","block_type":"box","text":"or their respective affiliates; and any trust, pension, profit-sharing or other benefit plan for such persons may purchase","page_number":346,"box":{"x":46,"y":791,"width":819,"height":13}},{"id":"c904d1eb-98de-4ccc-84cd-de42b314041b","block_type":"box","text":"Institutional Shares at lower investment minimums than stated in the Fund’s Prospectus. The Fund realizes economies of scale and","page_number":346,"box":{"x":45,"y":807,"width":903,"height":12}},{"id":"9b508401-475c-4f75-b4ba-f8f3bf58f1d3","block_type":"box","text":"reduction of sales-related expenses by virtue of the familiarity of these persons with the Fund. Employees, directors, and board","page_number":346,"box":{"x":45,"y":822,"width":877,"height":13}},{"id":"22bc76b4-cd39-4b52-b6da-52b7b5cc131a","block_type":"box","text":"members of other funds wishing to purchase shares of the Fund must satisfy the Fund’s suitability standards.","page_number":346,"box":{"x":45,"y":838,"width":752,"height":12}},{"id":"107610aa-e3f2-48e1-867d-4ad00e6e7e2c","block_type":"box","text":"DCC&S.","page_number":346,"box":{"x":45,"y":862,"width":64,"height":10}},{"id":"7f9de885-4913-45ff-adc9-b104f775f7ec","block_type":"box","text":"Qualified Plans may be able to invest in shares of WeLEAF through the Defined Contribution Clearance and Settlement","page_number":346,"box":{"x":115,"y":861,"width":830,"height":13}},{"id":"af672c0b-eb23-4390-a55d-6a4e91d31b40","block_type":"box","text":"System (“DCC&S”) of the National Securities Clearing Corpora","page_number":346,"box":{"x":46,"y":877,"width":448,"height":13}},{"id":"a8a58c21-9ad8-404c-a402-aaa6e3c0b837","block_type":"box","text":"tion. 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Please","page_number":347,"box":{"x":46,"y":79,"width":432,"height":13}},{"id":"f747fc5f-da04-4e68-8d50-c5e2c25568aa","block_type":"box","text":"contact the Fund for information on agreements, procedures, sales","page_number":347,"box":{"x":483,"y":79,"width":460,"height":13}},{"id":"1b36ea83-ddb5-4c7d-ae66-a8296eeaa608","block_type":"box","text":"charges and fees related to DCC&S transactions.","page_number":347,"box":{"x":45,"y":94,"width":339,"height":13}},{"id":"afc327cd-6544-4194-b63e-8879c7df460a","block_type":"box","text":"Premier Shares","page_number":347,"box":{"x":45,"y":123,"width":108,"height":10}},{"id":"5ca86702-5f28-4acb-ae9f-cea37b7088ad","block_type":"box","text":"Purchase of Shares.","page_number":347,"box":{"x":45,"y":148,"width":133,"height":10}},{"id":"056015c4-e917-43a5-805b-2bae9de78ce1","block_type":"box","text":"WeLEAF offers Premier Shares as described in the Fund’s Prospectus.","page_number":347,"box":{"x":183,"y":148,"width":481,"height":13}},{"id":"b5236de4-d136-4792-8933-60831de15359","block_type":"box","text":"The following investors may purchase Premier Shares of WeLEAF, provided that the beneficial owners of such shares are natural","page_number":347,"box":{"x":45,"y":170,"width":894,"height":13}},{"id":"010a18a9-6b48-4847-a94b-302546c1a6da","block_type":"box","text":"persons: employees of BlackRock whose accounts are held throug","page_number":347,"box":{"x":45,"y":186,"width":457,"height":12}},{"id":"866e4cfb-9d37-4836-9c06-8d63f7875332","block_type":"box","text":"h a financial intermediary that has entered into an agreement","page_number":347,"box":{"x":502,"y":186,"width":423,"height":12}},{"id":"465d054f-420e-4c0b-a6bd-964ca48ab994","block_type":"box","text":"with the Distributor to offer Premier Shares; 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and c","page_number":347,"box":{"x":45,"y":263,"width":457,"height":13}},{"id":"08b521a3-2b4a-4bd9-8684-99cc390abe12","block_type":"box","text":"lients investing through financial intermediaries that have","page_number":347,"box":{"x":502,"y":263,"width":398,"height":13}},{"id":"74dc3783-86de-4941-91a7-b487b6fe9741","block_type":"box","text":"entered into an agreement with the Distributor to offer such s","page_number":347,"box":{"x":46,"y":279,"width":426,"height":13}},{"id":"dfc6efef-d636-4567-9a2f-bafb2cfeda65","block_type":"box","text":"hares on a platform that charges a transaction based sales","page_number":347,"box":{"x":473,"y":279,"width":399,"height":13}},{"id":"2858a9e4-ceac-460b-b41f-c764892cb38e","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000.","page_number":347,"box":{"x":45,"y":294,"width":547,"height":13}},{"id":"874c0e88-2ed5-4c32-94aa-f1f22c98f548","block_type":"box","text":"The Fund may in its discretion waive or modify any minimum investment amount, may reject any order for any class of shares","page_number":347,"box":{"x":45,"y":316,"width":878,"height":13}},{"id":"dca53dd8-c16b-478c-8cd2-b6f848ae10c9","block_type":"box","text":"and may suspend and resume the sale of shares of the Fund at any time.","page_number":347,"box":{"x":46,"y":331,"width":496,"height":13}},{"id":"c2d25201-69ce-4a5d-b394-3115a483bcfd","block_type":"box","text":"Premier Shares of the Fund may be purchased by customers of broker-dealers and agents that have established a servicing","page_number":347,"box":{"x":45,"y":354,"width":842,"height":12}},{"id":"24ce9d83-597f-4afd-9b98-08eefe0b3c6f","block_type":"box","text":"relationship with the Fund on behalf of their customers. 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The Distributor has agreed to use","page_number":348,"box":{"x":460,"y":440,"width":431,"height":13}},{"id":"1908b5bc-b531-49e4-8563-3fa4c39b588e","block_type":"box","text":"appropriate efforts to effect sales of the shares, but it is not obligated to sell any particular amount of shares. The Distributor’s","page_number":348,"box":{"x":46,"y":456,"width":875,"height":12}},{"id":"c5acd045-a245-4939-b709-ba032620c8c6","block_type":"box","text":"principal business address is 50 Hudson Yards, New York, NY 10001. The Distributor is an affiliate of BlackRock.","page_number":348,"box":{"x":45,"y":471,"width":803,"height":13}},{"id":"6e45acdd-350f-4819-b83c-6f6d3e84d373","block_type":"box","text":"Each Fund (with the exception of Circle Reserve, BlackRock Gov","page_number":348,"box":{"x":45,"y":493,"width":454,"height":13}},{"id":"9bf7ddeb-329a-4a93-bdf0-3b6cd4cb5802","block_type":"box","text":"ernment Money Market Portfolio and BlackRock Government","page_number":348,"box":{"x":499,"y":493,"width":436,"height":13}},{"id":"913d2221-375c-43b9-947c-d43d0f7c8b26","block_type":"box","text":"Money Market V.I. Fund) has adopted a shareholder servicing plan and/or a distribution plan or plans (in the case of Summit","page_number":348,"box":{"x":45,"y":508,"width":872,"height":13}},{"id":"3faa56f7-bff8-4862-870f-f1970a1dfcb5","block_type":"box","text":"Cash Reserves with respect to Investor C Shares only and in the case of WeLEAF with respect to Investor A, Investor C and","page_number":348,"box":{"x":46,"y":524,"width":856,"height":13}},{"id":"5ac1acdc-6479-4ac0-b92a-aa6d86925ebb","block_type":"box","text":"Service Shares only) (each, a “Distribution Plan”) in compliance with Rule 12b-1 under the Investment Company Act. Each Fund","page_number":348,"box":{"x":46,"y":539,"width":897,"height":13}},{"id":"868f8d5f-3a08-48c2-a524-5a1575173639","block_type":"box","text":"is authorized to pay the Distributor a fee at an annual rate ba","page_number":348,"box":{"x":45,"y":555,"width":425,"height":13}},{"id":"48a6d395-54a4-4b64-8dd9-e24bb91268b9","block_type":"box","text":"sed on the average daily NAV of Fund accounts maintained through","page_number":348,"box":{"x":472,"y":555,"width":473,"height":13}},{"id":"19af40c0-1aad-40af-aef7-7f766031a7e3","block_type":"box","text":"the Distributor. The service fee is not compensation for the admin","page_number":348,"box":{"x":45,"y":570,"width":457,"height":13}},{"id":"e653607f-cf56-4a24-b316-a56d93777c68","block_type":"box","text":"istrative and operational services rendered to shareholders by","page_number":348,"box":{"x":503,"y":570,"width":424,"height":13}},{"id":"2d38d2d0-36bc-44ec-9c5f-c464402860ca","block_type":"box","text":"affiliates of the Manager that are covered by any other agreement between each Fund and the Manager. Each class has exclusive","page_number":348,"box":{"x":46,"y":586,"width":890,"height":13}},{"id":"26fb64f9-3e2e-4fce-be23-33d49c314d4a","block_type":"box","text":"voting rights with respect to the Distribution Plan adopted with respect","page_number":348,"box":{"x":45,"y":601,"width":494,"height":13}},{"id":"d682f74a-d326-4c7a-9bf3-14ca6a5860fe","block_type":"box","text":"to such class pursuant to which service and/or distribution","page_number":348,"box":{"x":544,"y":601,"width":404,"height":13}},{"id":"e167de51-a1cd-48cb-b0c4-146c9504936a","block_type":"box","text":"fees are paid. The fee paid by each Fund compensates the Distributor","page_number":348,"box":{"x":45,"y":617,"width":479,"height":13}},{"id":"daf9fd58-24db-4d9c-b86a-5cdf5cedc5dc","block_type":"box","text":"for providing, or arranging for the provision of, shareholder","page_number":348,"box":{"x":529,"y":617,"width":416,"height":13}},{"id":"8378b34f-5ee4-483e-9d31-f3c638f34de4","block_type":"box","text":"servicing and sales and promotional activities and services with respect to shares of each Fund. The Distributor then determines,","page_number":348,"box":{"x":46,"y":632,"width":886,"height":13}},{"id":"defb9cdc-7a91-4b41-a517-466ec421f500","block_type":"box","text":"based on a number of criteria, how to allocate such fee among financial advisers, selected dealers and affiliates of the Distributor.","page_number":348,"box":{"x":46,"y":648,"width":894,"height":13}},{"id":"99665ca9-e637-46bc-9639-a9af94f6b21c","block_type":"box","text":"Each Fund’s Distribution Plans are subject to the provisi","page_number":348,"box":{"x":45,"y":669,"width":390,"height":13}},{"id":"30c4c436-8d41-467c-a24f-8c1e167f8876","block_type":"box","text":"ons of Rule 12b-1 under the Investment Company Act. In their","page_number":348,"box":{"x":436,"y":669,"width":437,"height":13}},{"id":"df1ca896-1e3d-4f87-9a7a-b852c707a351","block_type":"box","text":"consideration of a Distribution Plan, the Trustees must consider","page_number":348,"box":{"x":45,"y":685,"width":443,"height":12}},{"id":"de46ab5e-4b81-4f0b-b4c9-1e881b9c9f61","block_type":"box","text":"all factors they deem relevant, including information as to the","page_number":348,"box":{"x":493,"y":685,"width":427,"height":13}},{"id":"e751e60c-8412-434f-9470-fb1312266cd5","block_type":"box","text":"benefits of the Distribution Plan to the Fund and the related class of shareholders. In approving a Distribution Plan in accordance","page_number":348,"box":{"x":46,"y":700,"width":896,"height":13}},{"id":"68a70ebf-107f-49ce-a266-6acf338c8318","block_type":"box","text":"with Rule 12b-1, the non-interested Trustees concluded that there is reasonable likelihood that the Distribution Plan will benefit","page_number":348,"box":{"x":45,"y":716,"width":889,"height":12}},{"id":"4c9064d7-5e7a-4136-b403-66d10c572a1e","block_type":"box","text":"the Fund and its related class of shareholders.","page_number":348,"box":{"x":45,"y":731,"width":315,"height":10}},{"id":"d587c248-ed63-416c-ab37-ec523768ea05","block_type":"box","text":"Each Distribution Plan provides that, so long as the Distributio","page_number":348,"box":{"x":45,"y":753,"width":437,"height":13}},{"id":"b1678dbb-56e7-489d-bf93-c0fae9311847","block_type":"box","text":"n Plan remains in effect, the non-interested Trustees then in office","page_number":348,"box":{"x":483,"y":753,"width":453,"height":12}},{"id":"bd61723e-0583-4a69-8d40-875197a35811","block_type":"box","text":"will select and nominate other non-interested Trustees. Each Distri","page_number":348,"box":{"x":45,"y":768,"width":462,"height":10}},{"id":"e7511f46-0dbe-49e7-8a94-6f4b81507b2e","block_type":"box","text":"bution Plan can be terminated at any time, without penalty, by","page_number":348,"box":{"x":508,"y":768,"width":435,"height":13}},{"id":"fd77565c-e7f7-486e-8fcb-ae63656571c0","block_type":"box","text":"the vote of a majority of the non-interested Trustees or by the vot","page_number":348,"box":{"x":45,"y":784,"width":454,"height":13}},{"id":"e4a2e8de-1bf3-4ee2-9d33-260cd0a5114a","block_type":"box","text":"e of the holders of a majority of the outstanding related class of","page_number":348,"box":{"x":500,"y":784,"width":440,"height":13}},{"id":"5dacc482-1c7b-496a-ae5c-288a5ba402d3","block_type":"box","text":"voting securities of a Fund. A Distribution Plan cannot be ame","page_number":348,"box":{"x":45,"y":799,"width":433,"height":13}},{"id":"3666bd97-d06b-4c1e-a095-c911bc932906","block_type":"box","text":"nded to increase materially the amount to be spent by the Fund","page_number":348,"box":{"x":479,"y":799,"width":438,"height":13}},{"id":"3843a39d-7b29-4426-aa3d-d712fc3b4e34","block_type":"box","text":"without the approval of the related class of shareholders. All mat","page_number":348,"box":{"x":45,"y":815,"width":451,"height":13}},{"id":"c232f4c9-4545-47bc-8a61-2911e3127a70","block_type":"box","text":"erial amendments are required to be approved by the vote of","page_number":348,"box":{"x":497,"y":815,"width":420,"height":13}},{"id":"d82c3d91-43d4-41ed-94fa-b9fbcbee515c","block_type":"box","text":"Trustees, including a majority of the non-interested Trustees wh","page_number":348,"box":{"x":45,"y":830,"width":444,"height":13}},{"id":"3d85afa8-2cad-45c4-b9f6-739be6f82ea3","block_type":"box","text":"o have no direct or indirect financial interest in the Distribution","page_number":348,"box":{"x":490,"y":830,"width":440,"height":11}},{"id":"673cc7a4-db16-4b0a-9c2d-2cf980d28074","block_type":"box","text":"Plan, cast in person at a meeting called for that purpose. Rule 12b-1 further requires that each Fund preserve copies of each","page_number":348,"box":{"x":45,"y":846,"width":856,"height":13}},{"id":"ec2f4a50-ed38-40f2-9353-a02932432244","block_type":"box","text":"Distribution Plan and any report made pursuant to such plan for a period of not less than six years from the date of the","page_number":348,"box":{"x":45,"y":861,"width":829,"height":13}},{"id":"f85eabc3-6ca0-42a6-87bb-bd788c317c99","block_type":"box","text":"Distribution Plan or such report, the first two years of which should be stored in an easily accessible place.","page_number":348,"box":{"x":45,"y":877,"width":737,"height":13}},{"id":"5c37917f-ee40-49d5-bad6-2464bf5b62c2","block_type":"box","text":"II-44","page_number":348,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"3a1ef6de-639e-4f85-9335-c27fd33d4148","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":348,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1d9f886d-201e-4e16-bfe9-cd33ea1ccfc7","block_type":"box","text":"Among other things, each Distribution Plan provides that the Trustees will review quarterly reports of the shareholder servicing","page_number":349,"box":{"x":45,"y":79,"width":885,"height":13}},{"id":"16996400-8abd-4cfd-8091-e19820fe5f6d","block_type":"box","text":"and/or distribution expenditures paid to the Distributor. Information with respect to the distribution-related revenues and","page_number":349,"box":{"x":46,"y":94,"width":844,"height":13}},{"id":"be52d5d4-8ef7-4d26-b758-ee46f95bab63","block_type":"box","text":"expenses is presented to the Trustees for their consideration on a quarterly basis. Distribution-related expenses consist of financial","page_number":349,"box":{"x":46,"y":110,"width":899,"height":13}},{"id":"e9a421cb-55e1-4417-b623-deefb839ab61","block_type":"box","text":"adviser compensation, branch office and regional operation center","page_number":349,"box":{"x":46,"y":125,"width":458,"height":13}},{"id":"f71624c8-78a3-4766-898b-f88154d64127","block_type":"box","text":"selling and transaction processing expenses, advertising, sales","page_number":349,"box":{"x":510,"y":125,"width":422,"height":13}},{"id":"b614f433-f053-4bd0-92c3-6a0af8be81d6","block_type":"box","text":"promotion and marketing expenses and interest expense. Sales","page_number":349,"box":{"x":45,"y":141,"width":433,"height":13}},{"id":"c6f7f5b8-fb96-45b5-9b39-8e80a7b92464","block_type":"box","text":"personnel may receive different compensation for selling different","page_number":349,"box":{"x":483,"y":141,"width":453,"height":13}},{"id":"26b7624b-3f07-421b-ade2-dfbf56aef0b9","block_type":"box","text":"classes of shares.","page_number":349,"box":{"x":45,"y":156,"width":115,"height":10}},{"id":"15399e40-1fed-44d7-baf0-a0eaf4724d79","block_type":"box","text":"See “Information on Sales Charges and Distribution Related","page_number":349,"box":{"x":46,"y":179,"width":418,"height":13}},{"id":"6de0f5f5-7037-4b72-b2cb-42144a5e4e91","block_type":"box","text":"Expenses” or “Information on Distribution Related Expenses,” as","page_number":349,"box":{"x":469,"y":179,"width":458,"height":13}},{"id":"0529adf6-c9e1-44e0-823d-ad2a387f8f55","block_type":"box","text":"applicable, in Part I of each Fund’s SAI for information relating to the fees paid by your Fund to the Distributor under each","page_number":349,"box":{"x":46,"y":195,"width":854,"height":12}},{"id":"0fec0a48-de72-42fb-aa8e-cc57b855c35f","block_type":"box","text":"Distribution Plan during the Fund’s most recent fiscal year.","page_number":349,"box":{"x":45,"y":210,"width":409,"height":13}},{"id":"892795a1-2771-4a8f-886c-0127811bd66b","block_type":"box","text":"Limitations on the Payment of Asset Based Sales Charges","page_number":349,"box":{"x":45,"y":233,"width":399,"height":13}},{"id":"0690d769-45c4-4ca0-926a-b865d043bcff","block_type":"box","text":". The maximum sales charge rule in the Conduct Rules of the Financial","page_number":349,"box":{"x":445,"y":233,"width":492,"height":13}},{"id":"4d8178c5-5b59-4ba1-ac6e-a59fc06248f8","block_type":"box","text":"Industry Regulatory Authority (“FINRA”) imposes a limitation on certain asset-based sales charges. The maximum sales charge","page_number":349,"box":{"x":45,"y":248,"width":888,"height":13}},{"id":"e0a09210-2dbe-4516-a4ef-74fa61354af7","block_type":"box","text":"rule is applied separately to each class and limits the aggre","page_number":349,"box":{"x":45,"y":264,"width":403,"height":13}},{"id":"aa0c7a13-4e58-4942-920c-b941f4516beb","block_type":"box","text":"gate of distribution fee payments and CDSCs payable by a Fund to","page_number":349,"box":{"x":448,"y":264,"width":464,"height":13}},{"id":"ce2e4005-a2a5-4645-a650-1e46684ad0f0","block_type":"box","text":"(i) 7.25% of eligible gross sales of the applicable shares (excluding shares issued pursuant to dividend reinvestments and","page_number":349,"box":{"x":46,"y":279,"width":831,"height":13}},{"id":"5d026c63-f63a-49da-8edd-1288c2e10ec8","block_type":"box","text":"exchanges), plus (ii) interest on the unpaid balance for the applic","page_number":349,"box":{"x":46,"y":295,"width":447,"height":13}},{"id":"88789396-458e-494a-8990-ef02e1f065f6","block_type":"box","text":"able shares at the prime rate plus 1% (the unpaid balance being","page_number":349,"box":{"x":494,"y":295,"width":440,"height":13}},{"id":"7a91e2a6-9384-4e60-a824-9af1443c99b0","block_type":"box","text":"the maximum amount payable minus amounts received from the payment of the distribution fee).","page_number":349,"box":{"x":45,"y":310,"width":678,"height":13}},{"id":"363d69c9-519e-4a4a-aae9-93686f6f979c","block_type":"box","text":"Other Payments by the Fund","page_number":349,"box":{"x":46,"y":341,"width":208,"height":12}},{"id":"59ea7284-f703-4152-bb97-df7c51f8ffa6","block_type":"box","text":"In addition to fees a Fund pays to its transfer agent, BlackRo","page_number":349,"box":{"x":45,"y":366,"width":421,"height":13}},{"id":"1b1c3e6b-20b6-4879-a65e-365cfb06507b","block_type":"box","text":"ck, on behalf of a Fund, may enter into non-Plan agreements with","page_number":349,"box":{"x":467,"y":366,"width":456,"height":13}},{"id":"b97cdbab-fa63-4369-ad8c-677c29a38773","block_type":"box","text":"affiliated and unaffiliated brokers, dealers, financial institutions, i","page_number":349,"box":{"x":46,"y":381,"width":452,"height":13}},{"id":"f25fcdc9-f863-41c7-a1fb-336a94b976a6","block_type":"box","text":"nsurance companies, retirement plan record-keepers and other","page_number":349,"box":{"x":499,"y":381,"width":432,"height":13}},{"id":"1fdb1fea-bb2c-4f4d-bb9b-796b5ad98042","block_type":"box","text":"financial intermediaries (including BlackRock, BRIL and their","page_number":349,"box":{"x":45,"y":397,"width":429,"height":13}},{"id":"dca94ef6-7375-449c-b3b4-7485e2032079","block_type":"box","text":"affiliates, and entities that may also be serving as distribution","page_number":349,"box":{"x":479,"y":397,"width":423,"height":13}},{"id":"b934f068-daaa-4815-a990-af39a38f94b5","block_type":"box","text":"agents) (collectively, “Service Organizations”) pursuant to which the Fund will pay a Service Organization for administrative,","page_number":349,"box":{"x":46,"y":412,"width":870,"height":13}},{"id":"a6b5c881-8f41-4092-a7c8-174af2bd1df9","block_type":"box","text":"networking, recordkeeping, sub-transfer agency, sub-accoun","page_number":349,"box":{"x":45,"y":428,"width":419,"height":13}},{"id":"c2984e5b-ec25-440a-a647-2823cf257c64","block_type":"box","text":"ting and/or shareholder services. These non-Plan payments are","page_number":349,"box":{"x":464,"y":428,"width":432,"height":13}},{"id":"03605e9d-9f32-4154-8195-803a02b4ceba","block_type":"box","text":"generally based on either (1) a percentage of the average daily ne","page_number":349,"box":{"x":45,"y":443,"width":448,"height":13}},{"id":"ed6af60a-0950-4135-b3d6-62e94fc37c51","block_type":"box","text":"t assets of Fund shareholders serviced by a Service Organization","page_number":349,"box":{"x":493,"y":443,"width":443,"height":13}},{"id":"bb609e3b-5c95-4ed3-854c-5918085f7688","block_type":"box","text":"or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount of these payments may be","page_number":349,"box":{"x":46,"y":459,"width":905,"height":13}},{"id":"3537cf39-bc85-495f-8f07-e095dbf3eba0","block_type":"box","text":"substantial.","page_number":349,"box":{"x":46,"y":474,"width":77,"height":10}},{"id":"68d7f2ee-f7dd-42fa-bc86-1ec673e63c66","block_type":"box","text":"Additional Payments by BlackRock","page_number":349,"box":{"x":45,"y":504,"width":258,"height":13}},{"id":"31fb5c0d-2f68-499a-a92e-7a4194dcb125","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”) may","page_number":349,"box":{"x":45,"y":530,"width":825,"height":12}},{"id":"646359a4-fa6b-4b5c-a498-2b2cd58b4a30","block_type":"box","text":"compensate Service Organizations for the sale and distributio","page_number":349,"box":{"x":45,"y":545,"width":425,"height":13}},{"id":"a58261c8-c0cb-42e4-9ad1-cb1dff995717","block_type":"box","text":"n of shares of a Fund, for services to a Fund and its shareholders and/","page_number":349,"box":{"x":471,"y":545,"width":482,"height":12}},{"id":"d0f110f4-af7a-41dc-bccd-fef9bd693a2b","block_type":"box","text":"or for data provision or technology support. A Service Organization may perform these obligations itself or may arrange for a","page_number":349,"box":{"x":46,"y":561,"width":873,"height":12}},{"id":"6505075b-5f78-453c-9c50-f6747246ab92","block_type":"box","text":"third party to perform them. BlackRock may also make payments to Service Organizations as part of an effort to enhance its","page_number":349,"box":{"x":45,"y":576,"width":866,"height":13}},{"id":"a3c60425-d406-4ab8-9aac-ecae6dd36502","block_type":"box","text":"business relationship with such entities trading on technology platforms. These payments, which are not made pursuant to a Plan","page_number":349,"box":{"x":46,"y":592,"width":896,"height":12}},{"id":"3529aa94-42cd-4f2d-ad12-42fda745e175","block_type":"box","text":"or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":349,"box":{"x":46,"y":607,"width":540,"height":13}},{"id":"495f3ef4-15b1-4e56-8305-2cb48f3ab962","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees paid by a Fund to","page_number":349,"box":{"x":45,"y":630,"width":890,"height":13}},{"id":"834eb107-ebdd-4819-ae3c-fbd951e2c633","block_type":"box","text":"BlackRock for various services, such as investment advisory services). These payments are not an additional charge to a Fund or its","page_number":349,"box":{"x":46,"y":645,"width":907,"height":13}},{"id":"bf4a6252-9b3f-479c-846f-1bcc6f9b54c0","block_type":"box","text":"shareholders and do not change the price paid by shareholders for the purchase of a Fund’s shares or the amount a Fund receives","page_number":349,"box":{"x":46,"y":661,"width":894,"height":13}},{"id":"a0ca1a97-0fc9-4cc7-a060-1e3103fa65ca","block_type":"box","text":"as proceeds from such purchases. Additional Payments made to Service Organizations are in addition to any distribution or","page_number":349,"box":{"x":46,"y":676,"width":855,"height":13}},{"id":"f4d6d11a-91ff-4855-9780-cd52aa1afc0b","block_type":"box","text":"shareholder servicing fees paid under any Plan of any Fund, any s","page_number":349,"box":{"x":46,"y":692,"width":453,"height":13}},{"id":"3c37d5d6-0442-4795-ae4c-af56997b5512","block_type":"box","text":"ales charges, commissions or other concessions described in the","page_number":349,"box":{"x":500,"y":692,"width":437,"height":13}},{"id":"eefb0064-2793-4f93-b38d-a2149b93b80c","block_type":"box","text":"Prospectus or this SAI, and any administrative, networking, reco","page_number":349,"box":{"x":45,"y":707,"width":447,"height":13}},{"id":"a045317c-0a8c-445a-a9e2-13f4b6bb2901","block_type":"box","text":"rdkeeping, sub-transfer agency or sub-accounting fees payable by","page_number":349,"box":{"x":493,"y":707,"width":452,"height":13}},{"id":"13360a13-f8ad-4589-b234-bcba158e6874","block_type":"box","text":"a Fund. 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BlackRock may pay Service Organizations additional types of incentive compensation in","page_number":353,"box":{"x":45,"y":678,"width":907,"height":13}},{"id":"0d4bc773-8d6e-42c5-90d1-535bc7ed0de3","block_type":"box","text":"the future to the extent not prohibited by applicable laws or regulations.","page_number":353,"box":{"x":45,"y":694,"width":501,"height":13}},{"id":"f95abb0e-1743-4145-a95e-a531cf55d1ba","block_type":"box","text":"Separately, BlackRock has developed proprietary tools, calculators and related interactive or digital content that is made available","page_number":353,"box":{"x":46,"y":717,"width":900,"height":13}},{"id":"f44fac43-fbc6-459c-a861-c2d90e0ec2fa","block_type":"box","text":"through the www.BlackRock.com website at no additional cost to Service Organizations. 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Such charges may vary among Service Organizations but in all cases will be retained by the Service Organization and will","page_number":354,"box":{"x":45,"y":195,"width":904,"height":12}},{"id":"df4282f6-d380-4f1a-837d-7eb0dc7b8972","block_type":"box","text":"not be remitted to a Fund or BlackRock.","page_number":354,"box":{"x":45,"y":210,"width":281,"height":10}},{"id":"2acbc74c-0a89-463c-a8f6-49003f26debe","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a Service Organization to","page_number":354,"box":{"x":46,"y":233,"width":902,"height":13}},{"id":"2bc59190-90eb-43d7-bfa7-9eadfb710a49","block_type":"box","text":"purchase or sell shares of a Fund and when considering which share class is most appropriate.","page_number":354,"box":{"x":45,"y":249,"width":651,"height":12}},{"id":"9922a673-e8e9-4855-a65a-0bd3e863b29d","block_type":"box","text":"You should consult with your","page_number":354,"box":{"x":701,"y":249,"width":208,"height":12}},{"id":"6e93a2cf-3dea-4a09-ac1e-3dba125d95dd","block_type":"box","text":"Service Organization, and review carefully any disclosure by the Service Organization, as to compensation received by it or its","page_number":354,"box":{"x":46,"y":264,"width":871,"height":13}},{"id":"0d269950-8d7b-4183-a638-db6f8d3503b2","block_type":"box","text":"affiliates and for more information about the payments described above.","page_number":354,"box":{"x":46,"y":280,"width":502,"height":12}},{"id":"185eda1f-145a-4888-adfd-03a4a50a2da7","block_type":"box","text":"R","page_number":354,"box":{"x":409,"y":311,"width":12,"height":9}},{"id":"d5c58475-10dd-41be-8284-3142f980386e","block_type":"box","text":"EDEMPTION OF","page_number":354,"box":{"x":421,"y":313,"width":109,"height":7}},{"id":"99d9d620-4e8a-40d4-ab13-791ad727cded","block_type":"box","text":"S","page_number":354,"box":{"x":536,"y":310,"width":7,"height":10}},{"id":"b9b25b0e-5e1c-49b0-9b27-5d23187e52b9","block_type":"box","text":"HARES","page_number":354,"box":{"x":544,"y":313,"width":45,"height":7}},{"id":"ff722eb3-9640-49e2-a7a1-06087db027e2","block_type":"box","text":"Each Fund will normally redeem shares for cash upon receipt of a request in proper form, although each Fund retains the right to","page_number":354,"box":{"x":45,"y":335,"width":897,"height":13}},{"id":"b47c1c3d-9c38-44b7-9961-e097a189e352","block_type":"box","text":"redeem some or all of its shares in-kind under unusual circumstan","page_number":354,"box":{"x":45,"y":351,"width":457,"height":10}},{"id":"60d3ddde-aff4-4ea6-a1aa-fc654c43c0ec","block_type":"box","text":"ces, in order to protect the interests of remaining shareholders,","page_number":354,"box":{"x":502,"y":351,"width":433,"height":12}},{"id":"3a5efbff-5bd0-438e-87f4-3b19e94a17f9","block_type":"box","text":"or to accommodate a request by a particular shareholder that does not adversely affect the interest of the remaining shareholders,","page_number":354,"box":{"x":46,"y":366,"width":896,"height":13}},{"id":"686664a7-5022-49c2-805e-db24ed67a770","block_type":"box","text":"by delivery of securities and other assets selected from the Fund’s portfolio holdings at its discretion. 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In an in-kind redemption, a pro rata","page_number":354,"box":{"x":45,"y":413,"width":889,"height":12}},{"id":"1306f0d1-d40e-4319-b081-98476da3a0c0","block_type":"box","text":"portion of a Fund’s portfolio holdings will generally be distribut","page_number":354,"box":{"x":45,"y":428,"width":444,"height":13}},{"id":"53c41604-12c9-464a-ab0c-42e049d10f82","block_type":"box","text":"ed to the redeeming shareholder. Each Fund has elected to be","page_number":354,"box":{"x":490,"y":428,"width":424,"height":13}},{"id":"a284eaa1-eafb-4ded-a1b5-d5ce5c6aa5d4","block_type":"box","text":"governed by Rule 18f-1 under the Investment Company Act so th","page_number":354,"box":{"x":45,"y":444,"width":455,"height":12}},{"id":"78b4fb1b-381a-4cda-b1c4-ee55bf1e4691","block_type":"box","text":"at the Fund is obligated to redeem its shares solely in cash up to","page_number":354,"box":{"x":501,"y":444,"width":440,"height":12}},{"id":"828b9f6b-8bed-4441-be37-0fc304f93d87","block_type":"box","text":"the lesser of $250,000 or 1% of its NAV during any 90-day period for any shareholder of the Fund. 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The redemption price will be reduced by any","page_number":354,"box":{"x":493,"y":513,"width":420,"height":13}},{"id":"32e459d1-26bf-4790-826d-50e6cb93558e","block_type":"box","text":"applicable CDSC.","page_number":354,"box":{"x":46,"y":529,"width":122,"height":12}},{"id":"c6798372-0a2d-49c8-b8d9-529e69fa8544","block_type":"box","text":"If notice is received by the Fund’s transfer agent or certain financial","page_number":354,"box":{"x":45,"y":551,"width":466,"height":13}},{"id":"a392d2c3-9615-48b9-9c4d-71284dbce20d","block_type":"box","text":"intermediaries, as applicable, prior to the applicable cut-off","page_number":354,"box":{"x":516,"y":551,"width":411,"height":13}},{"id":"34dc78af-b464-40c1-ad61-9d0893477238","block_type":"box","text":"time on that day, the redemption will be effective on such day. If","page_number":354,"box":{"x":45,"y":567,"width":449,"height":13}},{"id":"d00e1880-2f76-4555-a9b4-26583c097acd","block_type":"box","text":"the notice is received after the applicable cut-off time, the","page_number":354,"box":{"x":498,"y":567,"width":396,"height":13}},{"id":"04295209-c8ae-44f0-b303-f6d8ea857d7b","block_type":"box","text":"redemption will be effective on the next business day and, unless otherwise provided in the Fund’s Prospectus, payment will be","page_number":354,"box":{"x":45,"y":582,"width":878,"height":13}},{"id":"88d4d276-3305-4cf3-b54a-3665da6b5779","block_type":"box","text":"made on the second business day after receipt of the notice.","page_number":354,"box":{"x":45,"y":598,"width":411,"height":13}},{"id":"bb9ef0a2-57ff-462e-9484-b9aa43c6c068","block_type":"box","text":"Summit Cash Reserves — Redemption of Shares","page_number":354,"box":{"x":46,"y":628,"width":349,"height":13}},{"id":"2b674e5e-cbc8-4f75-80be-38d6006e21c6","block_type":"box","text":"Redemptions may be made in the manner and amounts described in Summit Cash Reserves’ Prospectuses. Signatures, when","page_number":354,"box":{"x":46,"y":653,"width":857,"height":13}},{"id":"637545d9-417e-4e5d-9c44-f5cfcf9d8008","block_type":"box","text":"required, must conform exactly to the account registration. If (i) the proceeds of the redemption would exceed $250,000 for a","page_number":354,"box":{"x":45,"y":669,"width":873,"height":13}},{"id":"2991e184-de97-4c90-981a-d9415321ae2b","block_type":"box","text":"redemption by wire or ACH, or $100,000 for a redemption by check","page_number":354,"box":{"x":45,"y":684,"width":480,"height":13}},{"id":"c44bf720-5d50-4592-8dc1-0988e4a36132","block_type":"box","text":", (ii) the Fund does not have verified banking information on","page_number":354,"box":{"x":526,"y":684,"width":421,"height":13}},{"id":"b0dd6810-d4fc-48fb-ae39-4313d58645db","block_type":"box","text":"file, (iii) the proceeds are not to be paid to the record owner at the record address, or (iv) the shareholder is a corporation,","page_number":354,"box":{"x":45,"y":700,"width":845,"height":13}},{"id":"18baa035-3b9e-4741-a263-29b3fc606489","block_type":"box","text":"partnership, trust or fiduciary, signature(s) must","page_number":354,"box":{"x":45,"y":715,"width":334,"height":13}},{"id":"33674fca-1be3-41f9-866f-a5216076ce99","block_type":"box","text":"be guaranteed by any eligible guarantor institution.","page_number":354,"box":{"x":384,"y":715,"width":353,"height":13}},{"id":"cbe9013a-4d77-4042-a662-6ca25cc33307","block_type":"box","text":"Generally, a properly signed written request with any required signature guarantee is all that is required for a redemption. In some","page_number":354,"box":{"x":46,"y":738,"width":903,"height":13}},{"id":"fdb07382-46b8-4127-8a3a-e4e031e4fc6e","block_type":"box","text":"cases, however, other documents may be necessary. Additional documentary evidence of authority is required by BNY Mellon","page_number":354,"box":{"x":45,"y":754,"width":877,"height":13}},{"id":"11aae9b7-28ba-4c88-b4b6-3569bd7ad9f1","block_type":"box","text":"Investment Servicing (US) Inc. in the event redemption is request","page_number":354,"box":{"x":45,"y":769,"width":446,"height":13}},{"id":"eb7acc06-9678-4bb6-b23f-7514204cfd99","block_type":"box","text":"ed by a corporation, partnership, trust, fiduciary, executor or","page_number":354,"box":{"x":492,"y":769,"width":424,"height":13}},{"id":"5d4f1c73-2c32-4abe-b045-a25c888eb413","block_type":"box","text":"administrator. See “Signature Guarantee” below.","page_number":354,"box":{"x":46,"y":785,"width":340,"height":13}},{"id":"cc28748d-9bc9-47c1-b07d-acfd8f867b37","block_type":"box","text":"Note on Low Balance Accounts","page_number":354,"box":{"x":45,"y":808,"width":222,"height":10}},{"id":"b231ad35-dba4-4ab7-aef4-1e11263fbfc0","block_type":"box","text":". Because of the high cost of maintaining smaller shareholder accounts, BlackRock has set a","page_number":354,"box":{"x":269,"y":808,"width":633,"height":13}},{"id":"23eeab90-1cf4-4966-b425-02456469f187","block_type":"box","text":"minimum balance of $500 in each Fund position you hold within your account (the “Fund Minimum”), and may redeem the","page_number":354,"box":{"x":45,"y":823,"width":869,"height":13}},{"id":"834e571d-1463-48b6-a902-ce8ef62ed8b8","block_type":"box","text":"shares in your account if the NAV of those shares in your account falls below $500 for any reason, including market fluctuation.","page_number":354,"box":{"x":46,"y":838,"width":893,"height":14}},{"id":"523e7375-f687-4c9f-8da2-274f41dc2587","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 involuntary","page_number":354,"box":{"x":45,"y":862,"width":850,"height":12}},{"id":"458a40e8-8467-4ebf-87ca-ea6ad9f02245","block_type":"box","text":"redemption. This notification will provide you with a 90 calendar day period to make an additional investment in order to bring","page_number":354,"box":{"x":45,"y":877,"width":891,"height":13}},{"id":"65790994-2d74-4a82-880e-981854f04a65","block_type":"box","text":"II-50","page_number":354,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"572ff2eb-a735-43db-9759-3398130770ec","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":354,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ae40124a-32ea-4190-8fc6-f84e644f1e59","block_type":"box","text":"the value of your account to at least $500 before the Fund makes an involuntary redemption. This involuntary redemption will","page_number":355,"box":{"x":45,"y":78,"width":881,"height":14}},{"id":"04daed9a-087a-40d5-a624-1d45a45a90e5","block_type":"box","text":"not charge any deferred sales charge, and may not apply to accounts of certain employer-sponsored retirement plans (not","page_number":355,"box":{"x":45,"y":94,"width":841,"height":13}},{"id":"c0ce7508-c881-4502-9986-d3e013eae9e0","block_type":"box","text":"including IRAs), qualified state tuition plan (529 Plan) accounts, and select fee-based programs at your financial intermediary.","page_number":355,"box":{"x":45,"y":110,"width":874,"height":13}},{"id":"5b9fc82a-9594-4e1a-862c-0e7d99060c7e","block_type":"box","text":"Payment of Redemption Proceeds","page_number":355,"box":{"x":45,"y":133,"width":234,"height":13}},{"id":"40e1a477-922c-415a-98d7-821c75b8149b","block_type":"box","text":". The Fund may suspend the right of redemption or postpone the date of payment upon","page_number":355,"box":{"x":280,"y":133,"width":607,"height":13}},{"id":"d30b43fb-f72f-4123-b352-f3e4f43101c1","block_type":"box","text":"redemption for such periods as are permitted under the Investment Company Act, and may redeem shares involuntarily or make","page_number":355,"box":{"x":45,"y":148,"width":891,"height":13}},{"id":"35faffbd-7b11-48af-ba90-52f7c12bc5a2","block_type":"box","text":"payment for redemption in securities or other property when d","page_number":355,"box":{"x":45,"y":164,"width":435,"height":13}},{"id":"ff5b7760-4a88-44cb-941e-65646fb601d4","block_type":"box","text":"etermined appropriate in light of the Fund’s responsibilities under","page_number":355,"box":{"x":481,"y":164,"width":455,"height":13}},{"id":"268047a7-1dc2-477c-8a6b-10029ea1c92d","block_type":"box","text":"the Investment Company Act.","page_number":355,"box":{"x":45,"y":179,"width":207,"height":13}},{"id":"e59b7784-fc9e-4081-a677-88ce9b06e161","block_type":"box","text":"The Fund reserves the right, if conditions exist which make cash p","page_number":355,"box":{"x":45,"y":202,"width":458,"height":13}},{"id":"e8ab8c08-1c16-4982-8a47-ecdce1cdff85","block_type":"box","text":"ayments undesirable, to honor any request for redemption or","page_number":355,"box":{"x":504,"y":202,"width":423,"height":13}},{"id":"dbc66aba-da53-4981-8d1b-6cd06a38d65e","block_type":"box","text":"repurchase of the Fund’s shares by making payment in whole or in part in securities chosen by the Fund and valued in the same","page_number":355,"box":{"x":45,"y":218,"width":884,"height":13}},{"id":"f184cade-ea32-4ec1-9cf6-c35a8702dd6b","block_type":"box","text":"way as they would be valued for purposes of computing the Fund’s NAV. If payment is made in securities, a shareholder may","page_number":355,"box":{"x":45,"y":233,"width":872,"height":13}},{"id":"0865dc5e-7150-4696-876d-350b09599122","block_type":"box","text":"incur transaction costs in converting these securities into cash. The Fund has elected, however, to be governed by Rule 18f-1 under","page_number":355,"box":{"x":45,"y":249,"width":906,"height":13}},{"id":"ea60d2ec-844a-45d8-969f-464479861c74","block_type":"box","text":"the Investment Company Act so that the Fund is obligated to redeem its shares solely in cash up to the lesser of $250,000 or 1%","page_number":355,"box":{"x":45,"y":264,"width":890,"height":13}},{"id":"4b320ded-5caa-4688-ad80-afb77f1ef2db","block_type":"box","text":"of its NAV during any 90-day period for any one shareholder of the Fund.","page_number":355,"box":{"x":46,"y":280,"width":515,"height":13}},{"id":"c5189640-669c-456f-82af-4766bb8363d6","block_type":"box","text":"Under the Investment Company Act, the Fund may suspend the right to redemption or postpone the date of payment upon","page_number":355,"box":{"x":45,"y":303,"width":853,"height":13}},{"id":"ada13fbf-7f6c-4703-a2bf-f06a7298a01c","block_type":"box","text":"redemption for any period during which the NYSE is closed (oth","page_number":355,"box":{"x":45,"y":318,"width":449,"height":13}},{"id":"93178a65-ed9f-46bf-b613-74aae9dd2d96","block_type":"box","text":"er than customary weekend and holiday closings), or during","page_number":355,"box":{"x":495,"y":318,"width":416,"height":13}},{"id":"f058f256-6b15-4002-b23c-7ef88ee38c54","block_type":"box","text":"which trading on the NYSE is restricted, or during which (as determined by the SEC by rule or regulation) an emergency exists as","page_number":355,"box":{"x":45,"y":334,"width":898,"height":13}},{"id":"4dcac532-f1d2-4645-b1ea-54c97c7b6cfb","block_type":"box","text":"a result of which disposal or valuation of portfolio securities is not reasonably practicable, or for such other periods as the SEC","page_number":355,"box":{"x":46,"y":349,"width":879,"height":13}},{"id":"12b474b5-8066-45e1-9d98-0556fb4c38a7","block_type":"box","text":"may permit. (The Fund may also suspend or postpone the recordation of the transfer of its shares upon the occurrence of any of","page_number":355,"box":{"x":45,"y":365,"width":888,"height":13}},{"id":"badfcbc4-c13a-4664-8549-a60ea9b80669","block_type":"box","text":"the foregoing conditions.)","page_number":355,"box":{"x":45,"y":380,"width":178,"height":13}},{"id":"9effb52e-99f3-4996-b512-3e68795b1a25","block_type":"box","text":"The Fund may redeem shares involuntarily to reimburse the Fund fo","page_number":355,"box":{"x":45,"y":403,"width":474,"height":13}},{"id":"4423ce99-b9ad-4c6b-914d-6b085cf6dd03","block_type":"box","text":"r any loss sustained by reason of the failure of a shareholder","page_number":355,"box":{"x":520,"y":403,"width":416,"height":13}},{"id":"2a61ca4b-55ca-4f96-adca-479cad2d223a","block_type":"box","text":"to make full payment for shares purchased by the shareholder or t","page_number":355,"box":{"x":45,"y":419,"width":459,"height":13}},{"id":"f800c220-64f0-4491-979f-6ddb2b6b9b54","block_type":"box","text":"o collect any charge relating to a transaction effected for the","page_number":355,"box":{"x":504,"y":419,"width":416,"height":13}},{"id":"eb79db2d-a890-4a88-a84b-0384cece16af","block_type":"box","text":"benefit of a shareholder. The Fund reserves the express right to redeem shares of the Fund involuntarily at any time if the Board of","page_number":355,"box":{"x":46,"y":434,"width":904,"height":13}},{"id":"b94e5f48-c439-4479-940f-269ac21a4859","block_type":"box","text":"Trustees determines, in its sole discretion, that failure to do so ma","page_number":355,"box":{"x":45,"y":450,"width":455,"height":12}},{"id":"32867873-7fc0-407d-886a-844d9f2be489","block_type":"box","text":"y have adverse consequences to the holders of shares in the Fund.","page_number":355,"box":{"x":501,"y":450,"width":452,"height":13}},{"id":"fa6892fd-0866-4f20-960f-2f2ce4a5bcc3","block_type":"box","text":"Upon such redemption the holders of shares so redeemed shal","page_number":355,"box":{"x":45,"y":465,"width":428,"height":13}},{"id":"87f846e6-a24e-425a-8f5f-3a197b0104c0","block_type":"box","text":"l have no further right with respect thereto other than to receive","page_number":355,"box":{"x":474,"y":465,"width":442,"height":13}},{"id":"77d4be5e-9dc3-4454-a0f5-6de07a045266","block_type":"box","text":"payment of the redemption price.","page_number":355,"box":{"x":45,"y":481,"width":231,"height":13}},{"id":"6d2c6a52-984e-4a03-bb26-ec4b23d915c7","block_type":"box","text":"Signature Guarantee","page_number":355,"box":{"x":46,"y":504,"width":141,"height":13}},{"id":"e8fa4b6a-1d78-457f-b5e7-63fafaa50ae1","block_type":"box","text":". A signature guarantee is designed to protect the shareholders and the Fund against fraudulent transactions","page_number":355,"box":{"x":189,"y":504,"width":744,"height":13}},{"id":"8a1d6400-fe09-4cd2-b71a-ae98b1aaccf4","block_type":"box","text":"by unauthorized persons. A signature guarantee may be obtai","page_number":355,"box":{"x":46,"y":519,"width":426,"height":13}},{"id":"47e26a05-b356-425d-9b5b-67ac828101fd","block_type":"box","text":"ned from a domestic bank or trust company, recognized broker,","page_number":355,"box":{"x":472,"y":519,"width":444,"height":13}},{"id":"c4b8028a-5a66-4d6b-bfc4-11a3eb69ffb5","block_type":"box","text":"dealer, clearing agency, savings association who are participants in a medallion program by the Securities Transfer Association,","page_number":355,"box":{"x":46,"y":535,"width":881,"height":13}},{"id":"88b82cb4-7706-48d1-af5c-a4cfee147cf5","block_type":"box","text":"credit unions, national securities exchanges and registered secur","page_number":355,"box":{"x":45,"y":550,"width":441,"height":13}},{"id":"5c3c9bbd-884f-4346-b957-b7ffcd9182dd","block_type":"box","text":"ities associations. The three recognized medallion programs are","page_number":355,"box":{"x":486,"y":550,"width":439,"height":13}},{"id":"e05917d5-fa91-4071-a76a-86a97f11f34b","block_type":"box","text":"Securities Transfer Agent Medallion Program (STAMP), Stock Exchanges Medallion Program (SEMP) and New York Stock","page_number":355,"box":{"x":46,"y":566,"width":862,"height":13}},{"id":"d11ab9f0-35e6-4fdf-81bc-4b0a9b358f20","block_type":"box","text":"Exchange, Inc. Medallion Signature Program (MSP). Signature Guarantees which are not a part of these programs will not be","page_number":355,"box":{"x":45,"y":581,"width":871,"height":13}},{"id":"cbf8b992-0110-4fd6-9471-df5b9a72c14c","block_type":"box","text":"accepted. Please note that a notary public stamp or seal is not acceptable.","page_number":355,"box":{"x":46,"y":597,"width":506,"height":13}},{"id":"10a459ac-7c98-45c8-bd80-56cc91d39bb0","block_type":"box","text":"WeLEAF — Redemption of Shares","page_number":355,"box":{"x":45,"y":627,"width":252,"height":13}},{"id":"b4060ddd-e9d1-457c-a6bb-6bd901e38201","block_type":"box","text":"Redemptions may be made in the manner and amounts described in W","page_number":355,"box":{"x":46,"y":653,"width":492,"height":13}},{"id":"502e355f-04aa-45ed-8e42-18f2ee1438ec","block_type":"box","text":"eLEAF’s Prospectuses. Signatures, when required, must","page_number":355,"box":{"x":539,"y":653,"width":382,"height":13}},{"id":"b24fffd5-3f87-4046-a611-d1f5f3a0d2d1","block_type":"box","text":"conform exactly to the account registration. If (i) the proceed","page_number":355,"box":{"x":45,"y":668,"width":424,"height":13}},{"id":"3a0d8041-8366-4540-90cd-614ce95bef04","block_type":"box","text":"s of the redemption would exceed $250,000 for a redemption by wire","page_number":355,"box":{"x":469,"y":668,"width":484,"height":13}},{"id":"d682d550-2954-41b7-9fe2-654d61ec5b6f","block_type":"box","text":"or ACH, or $100,000 for a redemption by check, (ii) the Fund does","page_number":355,"box":{"x":46,"y":684,"width":468,"height":13}},{"id":"2f4f87fa-8f25-4cec-8697-77d682209e21","block_type":"box","text":"not have verified banking information on file, (iii) the","page_number":355,"box":{"x":520,"y":684,"width":370,"height":13}},{"id":"792a1709-a71e-4bd9-927a-090452b4ceeb","block_type":"box","text":"proceeds are not to be paid to the record owner at the record address, or (iv) the shareholder is a corporation, partnership, trust or","page_number":355,"box":{"x":45,"y":699,"width":906,"height":13}},{"id":"ccda98cb-df94-442a-89df-7f84b5f8a018","block_type":"box","text":"fiduciary, signature(s) must be guaranteed by any eligible guarantor institution.","page_number":355,"box":{"x":45,"y":715,"width":548,"height":13}},{"id":"56655878-d7b6-48a3-87bf-52cee30bf65b","block_type":"box","text":"Generally, a properly signed written request with any required signature guarantee is all that is required for a redemption. In some","page_number":355,"box":{"x":46,"y":738,"width":903,"height":13}},{"id":"c55b9b80-5e9d-4da4-b56d-e2886f4ffa9a","block_type":"box","text":"cases, however, other documents may be necessary. Additional documentary evidence of authority is required by BNY Mellon","page_number":355,"box":{"x":45,"y":753,"width":877,"height":13}},{"id":"eccfd9a6-2c5e-412d-adb2-141d91921ed4","block_type":"box","text":"Investment Servicing (US) Inc. in the event redemption is request","page_number":355,"box":{"x":45,"y":769,"width":446,"height":13}},{"id":"5b823baf-a1e1-4e52-99b2-c2e9339d3da6","block_type":"box","text":"ed by a corporation, partnership, trust, fiduciary, executor or","page_number":355,"box":{"x":492,"y":769,"width":424,"height":13}},{"id":"c21d1406-3833-4c63-bf78-4e408e2fd4b6","block_type":"box","text":"administrator. See “Signature Guarantee” below.","page_number":355,"box":{"x":46,"y":784,"width":340,"height":13}},{"id":"795d9b11-ec00-4594-ae2e-be8d8c635665","block_type":"box","text":"Note on Low Balance Accounts.","page_number":355,"box":{"x":45,"y":807,"width":226,"height":10}},{"id":"2af2c6e5-f494-418a-b488-779d7a8b2e65","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts, BlackRock has set a","page_number":355,"box":{"x":277,"y":807,"width":625,"height":13}},{"id":"e097672e-5de0-48f7-98c5-a63795e1d39b","block_type":"box","text":"minimum balance of $500 in each Fund position you hold within your account (“Fund Minimum”), and may redeem the shares in","page_number":355,"box":{"x":45,"y":823,"width":909,"height":13}},{"id":"6bb45a0f-a7c3-436d-88ff-c19f996b052a","block_type":"box","text":"your account if the NAV of those shares in your account falls below $500 for any reason, including market fluctuation.","page_number":355,"box":{"x":45,"y":838,"width":829,"height":13}},{"id":"ab2c624d-4241-47e6-9021-1050abded342","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 involuntary","page_number":355,"box":{"x":45,"y":861,"width":850,"height":13}},{"id":"ea2e661d-7037-4b8e-af51-b0d28aa05545","block_type":"box","text":"redemption. This notification will provide you with a 90 calendar day period to make an additional investment in order to bring","page_number":355,"box":{"x":45,"y":877,"width":891,"height":13}},{"id":"070ac0e1-b498-429e-9bcb-d3979bac6d7d","block_type":"box","text":"II-51","page_number":355,"box":{"x":482,"y":917,"width":33,"height":9}},{"id":"4f26cd7a-32a2-4b25-87c7-8c90824930b7","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":355,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"135fdf18-f540-4ae7-8444-fd32331cb145","block_type":"box","text":"the value of your account to at least $500 before the Fund makes an involuntary redemption. This involuntary redemption will","page_number":356,"box":{"x":45,"y":78,"width":881,"height":14}},{"id":"b269e94e-d254-42e8-9044-60509d8cee44","block_type":"box","text":"not charge any deferred sales charge, and may not apply to accounts of certain employer-sponsored retirement plans (not","page_number":356,"box":{"x":45,"y":94,"width":841,"height":13}},{"id":"3c966dc6-b243-42c7-9974-cc8dbf5eddc5","block_type":"box","text":"including IRAs), qualified state tuition plan (529 Plan) accounts, and select fee-based programs at your financial intermediary.","page_number":356,"box":{"x":45,"y":110,"width":874,"height":13}},{"id":"279d9c00-3ca1-4674-b949-068326bcf080","block_type":"box","text":"Service Shares","page_number":356,"box":{"x":45,"y":139,"width":101,"height":10}},{"id":"712f3610-979d-43c1-b9b9-b9bceb246d0d","block_type":"box","text":"Redemption of Shares.","page_number":356,"box":{"x":45,"y":164,"width":157,"height":13}},{"id":"8700e527-5db5-4fbe-8044-a8ae499e7c93","block_type":"box","text":"WeLEAF may redeem Service Shares if the account balance drops below the required minimum initial","page_number":356,"box":{"x":207,"y":164,"width":706,"height":13}},{"id":"9a3746a8-3ac7-4e0c-9d8f-03f578bb19bf","block_type":"box","text":"investment as the result of redemption requests and the shareholder does not increase the balance to at least the required minimum","page_number":356,"box":{"x":45,"y":179,"width":907,"height":13}},{"id":"1cc1d986-1d2f-46f5-9ca5-7c010561957c","block_type":"box","text":"initial investment upon thirty days’ written notice. If a customer has agreed with an institution to maintain a minimum balance in","page_number":356,"box":{"x":45,"y":195,"width":899,"height":13}},{"id":"0399d444-213f-4603-acf0-1e2956f75878","block_type":"box","text":"his or her account with the institution, and the balance in the account falls below that minimum, the customer may be obligated to","page_number":356,"box":{"x":45,"y":210,"width":907,"height":13}},{"id":"619e3659-f634-4466-aa1f-0b0ff6c0eff5","block_type":"box","text":"redeem all or part of his or her shares in the Fund to the extent necessary to maintain the minimum balance required.","page_number":356,"box":{"x":45,"y":226,"width":812,"height":13}},{"id":"7e1320a7-d382-4831-b841-234e0f6d9409","block_type":"box","text":"The following is applicable only to persons who were shareholders of an investment portfolio of Compass Capital Group of","page_number":356,"box":{"x":45,"y":248,"width":903,"height":13}},{"id":"ba2b5c04-f24d-4c1f-9106-3a93986b9ec2","block_type":"box","text":"Funds at the time of the Trust’s combination with The PNC Fund in 1996:","page_number":356,"box":{"x":45,"y":264,"width":544,"height":10}},{"id":"d3fe4af4-d2eb-40fc-b5f7-61feb80b95d3","block_type":"box","text":"Persons who were shareholders of an investment portfolio of Compass Capital Group of Funds at the time of the portfolio’s","page_number":356,"box":{"x":45,"y":286,"width":861,"height":13}},{"id":"f5fc5d26-9b68-4753-b33f-0e7578c6ce53","block_type":"box","text":"combination with The PNC Fund may also purchase and redeem Service Shares of the same Fund and for the same account in","page_number":356,"box":{"x":45,"y":302,"width":876,"height":12}},{"id":"6a40cb46-5a58-484a-ac25-5bbc128ab60b","block_type":"box","text":"which they held shares on that date through the procedures described in this section.","page_number":356,"box":{"x":45,"y":317,"width":585,"height":13}},{"id":"acb8fa8c-1373-45ad-bebd-7033948fe985","block_type":"box","text":"Payment of Redemption Proceeds.","page_number":356,"box":{"x":45,"y":340,"width":238,"height":12}},{"id":"ee9ac1d9-404b-4649-8752-f41a9a829b90","block_type":"box","text":"The Fund may suspend the right of redemption or postpone the date of payment upon","page_number":356,"box":{"x":288,"y":340,"width":599,"height":12}},{"id":"846eae39-fa4f-41c6-a7be-02925de9ec74","block_type":"box","text":"redemption for such periods as are permitted under the Investment Company Act, and may redeem shares involuntarily or make","page_number":356,"box":{"x":45,"y":355,"width":891,"height":13}},{"id":"dd8f9c6d-d709-49e4-8857-08d661aed1b6","block_type":"box","text":"payment for redemption in securities or other property when d","page_number":356,"box":{"x":45,"y":371,"width":435,"height":12}},{"id":"8bfc2ac5-f25f-4c06-97f3-316974f6f6e3","block_type":"box","text":"etermined appropriate in light of the Fund’s responsibilities under","page_number":356,"box":{"x":481,"y":371,"width":455,"height":12}},{"id":"6dbec597-8a1d-4ec9-898c-e5a2d1f91f58","block_type":"box","text":"the Investment Company Act.","page_number":356,"box":{"x":45,"y":386,"width":207,"height":13}},{"id":"511d738e-bb0f-4441-ae9e-c412d868e067","block_type":"box","text":"The Fund reserves the right, if conditions exist which make cash p","page_number":356,"box":{"x":45,"y":408,"width":458,"height":13}},{"id":"669724c4-8531-49bf-8d22-c824d41f0822","block_type":"box","text":"ayments undesirable, to honor any request for redemption or","page_number":356,"box":{"x":504,"y":408,"width":423,"height":13}},{"id":"ddd4e014-1fd2-4f9d-94a2-df85ef9f641a","block_type":"box","text":"repurchase of the Fund’s shares by making payment in whole or in part in securities chosen by the Fund and valued in the same","page_number":356,"box":{"x":45,"y":424,"width":884,"height":13}},{"id":"bf72cdaf-28f3-4a31-88c2-85eaab7b2873","block_type":"box","text":"way as they would be valued for purposes of computing the Fund’s NAV. If payment is made in securities, a shareholder may","page_number":356,"box":{"x":45,"y":440,"width":872,"height":12}},{"id":"b091bf9d-07f6-4728-abcb-34edf9621acf","block_type":"box","text":"incur transaction costs in converting these securities into cash. The Fund has elected, however, to be governed by Rule 18f-1 under","page_number":356,"box":{"x":45,"y":455,"width":906,"height":13}},{"id":"eb7270f1-0e1d-4347-a8f7-ba2dce5deca3","block_type":"box","text":"the Investment Company Act so that the Fund is obligated to redeem its shares solely in cash up to the lesser of $250,000 or 1%","page_number":356,"box":{"x":45,"y":470,"width":890,"height":13}},{"id":"2ed37f1c-b991-441b-9ce3-443fe513d1fb","block_type":"box","text":"of its NAV during any 90-day period for any one shareholder of the Fund.","page_number":356,"box":{"x":46,"y":486,"width":515,"height":13}},{"id":"c2add14b-06ed-4f34-bc12-8aeb0e172d3a","block_type":"box","text":"The Board of the Trust, or its delegate, will be permitted to impose a discretionary liquidity fee on redemptions from WeLEAF (up","page_number":356,"box":{"x":45,"y":508,"width":905,"height":13}},{"id":"9b3d0f39-711a-4a52-8b49-012d8d8dc5f4","block_type":"box","text":"to 2%). Please see the Fund’s Prospectus for additional information about discretionary liquidity fees.","page_number":356,"box":{"x":45,"y":524,"width":704,"height":13}},{"id":"5067dab2-ee2f-47a4-ac01-c029cffd54d0","block_type":"box","text":"Under the Investment Company Act, the Fund may suspend the right to redemption or postpone the date of payment upon","page_number":356,"box":{"x":45,"y":546,"width":853,"height":13}},{"id":"642efaf2-1d76-4c7e-9f78-1dd864409afc","block_type":"box","text":"redemption for any period during which the NYSE is closed (oth","page_number":356,"box":{"x":45,"y":562,"width":449,"height":13}},{"id":"8cd5b960-9fc7-4c3c-b559-82ce8cfd2549","block_type":"box","text":"er than customary weekend and holiday closings), or during","page_number":356,"box":{"x":495,"y":562,"width":416,"height":13}},{"id":"c8577334-b10d-4712-a51d-cf8a4738bf72","block_type":"box","text":"which trading on the NYSE is restricted, or during which (as determined by the SEC by rule or regulation) an emergency exists as","page_number":356,"box":{"x":45,"y":577,"width":898,"height":13}},{"id":"8b7ee0de-8815-43fb-b97b-2c9202ef5fa5","block_type":"box","text":"a result of which disposal or valuation or portfolio securities is not reasonably practicable, or for such other periods as the SEC","page_number":356,"box":{"x":46,"y":593,"width":880,"height":13}},{"id":"2043357d-b8ae-4868-ac2c-da502758fd46","block_type":"box","text":"may permit. (The Fund may also suspend or postpone the recordation of the transfer of its shares upon the occurrence of any of","page_number":356,"box":{"x":45,"y":608,"width":888,"height":13}},{"id":"4f6413a5-19a3-48a5-b96d-464e43712ee6","block_type":"box","text":"the foregoing conditions.)","page_number":356,"box":{"x":45,"y":624,"width":178,"height":13}},{"id":"984b06b3-e0f8-4acf-8851-99b077f5be09","block_type":"box","text":"The Fund may redeem shares involuntarily to reimburse the Fund fo","page_number":356,"box":{"x":45,"y":646,"width":474,"height":13}},{"id":"129ab21f-596c-4e41-a39e-6abd1cb70a94","block_type":"box","text":"r any loss sustained by reason of the failure of a shareholder","page_number":356,"box":{"x":520,"y":646,"width":416,"height":13}},{"id":"50846c7c-122c-436c-aff8-348dff74f6e3","block_type":"box","text":"to make full payment for shares purchased by the shareholder or t","page_number":356,"box":{"x":45,"y":662,"width":459,"height":13}},{"id":"7a3d2ef6-2f51-4274-bb40-91f0c1c7fe92","block_type":"box","text":"o collect any charge relating to a transaction effected for the","page_number":356,"box":{"x":504,"y":662,"width":416,"height":13}},{"id":"aa46dee8-2dcd-4d84-8905-8cd7a6365187","block_type":"box","text":"benefit of a shareholder. The Fund reserves the express right to redeem shares of the Fund involuntarily at any time if the Board of","page_number":356,"box":{"x":46,"y":677,"width":904,"height":13}},{"id":"e7f8f264-c43e-4c42-bcce-e7868adc8fae","block_type":"box","text":"Trustees determines, in its sole discretion, that failure to do so ma","page_number":356,"box":{"x":45,"y":693,"width":455,"height":12}},{"id":"cee12680-1e50-48f4-84bc-3cb5e34d46ad","block_type":"box","text":"y have adverse consequences to the holders of shares in the Fund.","page_number":356,"box":{"x":501,"y":693,"width":452,"height":13}},{"id":"4ce5a2cf-3fb3-4db8-b804-cc96c86463ce","block_type":"box","text":"Upon such redemption the holders of shares so redeemed shal","page_number":356,"box":{"x":45,"y":708,"width":428,"height":13}},{"id":"ba485b92-d432-4124-b73c-35f541118fa9","block_type":"box","text":"l have no further right with respect thereto other than to receive","page_number":356,"box":{"x":474,"y":708,"width":442,"height":13}},{"id":"2fbd1eb2-5aa6-4755-a71f-2c594e49c850","block_type":"box","text":"payment of the redemption price.","page_number":356,"box":{"x":45,"y":724,"width":231,"height":13}},{"id":"1ac96ce2-8565-4356-adcf-3540f81404f2","block_type":"box","text":"WeLEAF reserves the right to redeem shares in any account that it cannot confirm to its satisfaction is beneficially owned by a","page_number":356,"box":{"x":45,"y":746,"width":875,"height":13}},{"id":"22e73c49-2115-4c48-a908-854676691a1e","block_type":"box","text":"natural person, after providing at least 60 days’ advance notice.","page_number":356,"box":{"x":45,"y":762,"width":440,"height":13}},{"id":"e8393d29-a580-427c-a5b6-c59bad55aae4","block_type":"box","text":"Signature Guarantee.","page_number":356,"box":{"x":46,"y":785,"width":145,"height":12}},{"id":"ad5b0243-a751-4b5b-b35d-1af2047b6ac2","block_type":"box","text":"A signature guarantee is designed to protect the shareholders and the Fund against fraudulent transactions","page_number":356,"box":{"x":197,"y":784,"width":736,"height":13}},{"id":"ae102517-5d50-4799-8528-c1a7902beffe","block_type":"box","text":"by unauthorized persons. A signature guarantee may be obtai","page_number":356,"box":{"x":46,"y":800,"width":426,"height":12}},{"id":"afd49789-7ee8-4623-9769-42fcd573429e","block_type":"box","text":"ned from a domestic bank or trust company, recognized broker,","page_number":356,"box":{"x":472,"y":800,"width":444,"height":12}},{"id":"e69d239e-0e93-4cbd-9aac-afbb5a1a9c93","block_type":"box","text":"dealer, clearing agency, savings association who are participants in a medallion program by the Securities Transfer Association,","page_number":356,"box":{"x":46,"y":815,"width":881,"height":13}},{"id":"65bfbf63-aa0a-4636-9b9a-d6b0f8f17f2b","block_type":"box","text":"credit unions, national securities exchanges and registered secur","page_number":356,"box":{"x":45,"y":831,"width":441,"height":12}},{"id":"d9d496a3-d015-4b62-83fe-15a5c73cfc59","block_type":"box","text":"ities associations. The three recognized medallion programs are","page_number":356,"box":{"x":486,"y":831,"width":439,"height":12}},{"id":"3d0ae77a-50d7-4670-88a4-87ba24993978","block_type":"box","text":"Securities Transfer Agent Medallion Program (STAMP), Stock Exchanges Medallion Program (SEMP) and New York Stock","page_number":356,"box":{"x":46,"y":846,"width":862,"height":13}},{"id":"dc11b8bc-cc9c-4963-a36f-0a829d7be9c0","block_type":"box","text":"Exchange, Inc. Medallion Signature Program (MSP). Signature Guarantees which are not a part of these programs will not be","page_number":356,"box":{"x":45,"y":862,"width":871,"height":12}},{"id":"12c78b37-59f9-4988-a985-e2e39d816985","block_type":"box","text":"accepted. Please note that a notary public stamp or seal is not acceptable.","page_number":356,"box":{"x":46,"y":877,"width":506,"height":13}},{"id":"a4532ef6-e6de-4464-ae82-bc757f14f76c","block_type":"box","text":"II-52","page_number":356,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"6afc113d-672c-4d06-99d4-5e4700bf5f99","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":356,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b230bece-84d0-4351-80bd-287afc83a016","block_type":"box","text":"Circle Reserve — Redemption of Shares","page_number":357,"box":{"x":46,"y":79,"width":288,"height":13}},{"id":"53328ca9-041f-41f6-b74b-f7cd15a92e16","block_type":"box","text":"Redemptions may be made in the manner and amounts described in Circle Reserve’s Prospectus. Signatures, when required, must","page_number":357,"box":{"x":46,"y":104,"width":897,"height":13}},{"id":"d3d85f1d-b5b7-421f-9820-fb444a0461f5","block_type":"box","text":"conform exactly to the account registration. If (i) the pro","page_number":357,"box":{"x":45,"y":119,"width":393,"height":13}},{"id":"e7dac333-f9b7-43bf-9550-486a704e7f4d","block_type":"box","text":"ceeds of the redemption would exceed $250,000 for a redemption by","page_number":357,"box":{"x":439,"y":119,"width":479,"height":13}},{"id":"90542ee7-eaf8-41e3-8666-a1c7a0fee618","block_type":"box","text":"wire, (ii) the Fund does not have verified banking information o","page_number":357,"box":{"x":45,"y":135,"width":443,"height":13}},{"id":"404375aa-5f29-464f-84f7-32e5b84da99a","block_type":"box","text":"n file, (iii) the proceeds are not to be paid to the record owner at","page_number":357,"box":{"x":489,"y":135,"width":445,"height":13}},{"id":"b4d2214b-6187-43f6-bb9a-cc219a23511d","block_type":"box","text":"the record address, or (iv) the shareholder is a corporation, partn","page_number":357,"box":{"x":45,"y":150,"width":450,"height":13}},{"id":"49ca65cd-98c8-4d3c-a7d5-174222b0f90c","block_type":"box","text":"ership, trust or fiduciary, signature(s) may need to be guaranteed","page_number":357,"box":{"x":496,"y":150,"width":449,"height":13}},{"id":"67c3d98a-087b-4812-9e95-dfec7282c647","block_type":"box","text":"by any eligible guarantor institution.","page_number":357,"box":{"x":46,"y":166,"width":251,"height":13}},{"id":"3addb403-c5e9-440f-a89a-01025e1083cb","block_type":"box","text":"Generally, a properly signed written request with any required signature guarantee is all that is required for a redemption. In some","page_number":357,"box":{"x":46,"y":191,"width":903,"height":13}},{"id":"56125ef8-0910-4e90-87eb-2a55e607836b","block_type":"box","text":"cases, however, other documents may be necessary. Additional documentary evidence of authority is required by BNY Mellon","page_number":357,"box":{"x":45,"y":206,"width":877,"height":13}},{"id":"5cc4992c-4f57-4d64-a6d0-54da77b18ae9","block_type":"box","text":"Investment Servicing (US) Inc. in the event redemption is request","page_number":357,"box":{"x":45,"y":222,"width":446,"height":13}},{"id":"6e89dd88-57ac-4963-81df-c41ab6be2e56","block_type":"box","text":"ed by a corporation, partnership, trust, fiduciary, executor or","page_number":357,"box":{"x":492,"y":222,"width":424,"height":13}},{"id":"210844cc-c47b-4723-a25d-0e67e88d385f","block_type":"box","text":"administrator. See “Signature Guarantee” below.","page_number":357,"box":{"x":46,"y":237,"width":340,"height":13}},{"id":"fdd030a2-c224-4849-a2da-ab71d26e0e54","block_type":"box","text":"Note on Low Balance Accounts","page_number":357,"box":{"x":45,"y":260,"width":222,"height":10}},{"id":"e70341f6-3ff6-4c86-baba-a1313bdb062d","block_type":"box","text":". Because of the high cost of maintaining smaller shareholder accounts, BlackRock has set a","page_number":357,"box":{"x":269,"y":260,"width":633,"height":13}},{"id":"3a71b7ff-1772-43e0-bdc1-2020852cf5f1","block_type":"box","text":"minimum balance of $100,000 in the Fund position you hold within your account (“Fund Minimum”), and may redeem the","page_number":357,"box":{"x":45,"y":275,"width":865,"height":13}},{"id":"c1bc7537-7bd3-41cd-8962-4d57989ad6db","block_type":"box","text":"shares in your account if the NAV of those shares in your account falls below $100,000 for any reason, including market","page_number":357,"box":{"x":46,"y":291,"width":840,"height":13}},{"id":"d1cbc660-c734-4a64-8397-6315f096a802","block_type":"box","text":"fluctuation.","page_number":357,"box":{"x":45,"y":307,"width":79,"height":10}},{"id":"baf68da5-2eb9-465c-b44c-a470c5cb9bbe","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 involuntary","page_number":357,"box":{"x":45,"y":329,"width":850,"height":13}},{"id":"601760ef-e7e1-4ff8-8e58-06b75ccb7466","block_type":"box","text":"redemption. This notification will provide you with a 90 calendar day period to make an additional investment in order to bring","page_number":357,"box":{"x":45,"y":345,"width":891,"height":13}},{"id":"2b634139-90ad-47ac-b07a-79ac0e85638c","block_type":"box","text":"the value of your account to at least $100,000 before the Fund make","page_number":357,"box":{"x":45,"y":360,"width":477,"height":13}},{"id":"f9a82cd3-dd35-45f1-ab6e-fb682602bb1f","block_type":"box","text":"s an involuntary redemption. This involuntary redemption","page_number":357,"box":{"x":523,"y":360,"width":405,"height":13}},{"id":"b2512ffa-b059-453d-bdfc-3aebf5390ed5","block_type":"box","text":"will not charge any deferred sales charge, and may not apply to accounts of certain employer-sponsored retirement plans (not","page_number":357,"box":{"x":45,"y":376,"width":870,"height":13}},{"id":"a6ccca23-9b42-47c4-a74b-26eaa5034ffb","block_type":"box","text":"including IRAs), qualified state tuition plan (529 Plan) accounts, and select fee-based programs at your financial intermediary.","page_number":357,"box":{"x":45,"y":391,"width":874,"height":13}},{"id":"be9827f5-5d76-4810-8e1d-e1e771165df3","block_type":"box","text":"Payment of Redemption Proceeds","page_number":357,"box":{"x":45,"y":414,"width":234,"height":13}},{"id":"6f3ca3d5-d854-4ab4-a06d-99be85993b7b","block_type":"box","text":". The Fund may suspend the right of redemption or postpone the date of payment upon","page_number":357,"box":{"x":280,"y":414,"width":607,"height":13}},{"id":"fad13438-8157-4414-9f75-4a6b2f6c383a","block_type":"box","text":"redemption for such periods as are permitted under the Investment Company Act, and may redeem shares involuntarily or make","page_number":357,"box":{"x":45,"y":429,"width":891,"height":13}},{"id":"796256fd-9102-4c3c-9a25-d2c0d122fc66","block_type":"box","text":"payment for redemption in securities or other property when d","page_number":357,"box":{"x":45,"y":445,"width":435,"height":13}},{"id":"438a41e7-644c-4c73-9865-22a3fd3da34d","block_type":"box","text":"etermined appropriate in light of the Fund’s responsibilities under","page_number":357,"box":{"x":481,"y":445,"width":455,"height":13}},{"id":"c0f1a46e-6292-476b-b514-a96ee9058140","block_type":"box","text":"the Investment Company Act.","page_number":357,"box":{"x":45,"y":460,"width":207,"height":13}},{"id":"5b67b3a7-c171-408d-a232-79657450e449","block_type":"box","text":"The Fund reserves the right, if conditions exist which make cash p","page_number":357,"box":{"x":45,"y":483,"width":458,"height":13}},{"id":"82d8f906-e607-4ca2-b4c7-dc31832f929a","block_type":"box","text":"ayments undesirable, to honor any request for redemption or","page_number":357,"box":{"x":504,"y":483,"width":423,"height":13}},{"id":"cbc7ded1-25b1-4a75-ac78-3858d3b09603","block_type":"box","text":"repurchase of the Fund’s shares by making payment in whole or in part in securities chosen by the Fund and valued in the same","page_number":357,"box":{"x":45,"y":499,"width":884,"height":12}},{"id":"4e7efc1f-fd34-46c2-98db-bb5c1a8151a6","block_type":"box","text":"way as they would be valued for purposes of computing the Fund’s NAV. If payment is made in securities, a shareholder may","page_number":357,"box":{"x":45,"y":514,"width":872,"height":13}},{"id":"d9e28a06-7779-40b6-be6d-5aabf57b21ca","block_type":"box","text":"incur transaction costs in converting these securities into cash. 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A signature guarantee is designed to protect the shareholders and the Fund against fraudulent transactions","page_number":357,"box":{"x":189,"y":784,"width":744,"height":13}},{"id":"f4417742-0a48-46d6-901b-3dc3ab0913e5","block_type":"box","text":"by unauthorized persons. A signature guarantee may be obtai","page_number":357,"box":{"x":46,"y":799,"width":426,"height":13}},{"id":"57d94b69-befc-4ea5-a3a1-953587b48373","block_type":"box","text":"ned from a domestic bank or trust company, recognized broker,","page_number":357,"box":{"x":472,"y":799,"width":444,"height":13}},{"id":"44d5951a-c953-407f-9da6-79487f3fa425","block_type":"box","text":"dealer, clearing agency, savings association who are participants in a medallion program by the Securities Transfer Association,","page_number":357,"box":{"x":46,"y":815,"width":881,"height":13}},{"id":"7f08b558-67ea-4dd2-ba0d-a148a5f963b3","block_type":"box","text":"credit unions, national securities exchanges and registered secur","page_number":357,"box":{"x":45,"y":830,"width":441,"height":13}},{"id":"b3aa955d-0a39-4d24-b6c6-fb997959cdc5","block_type":"box","text":"ities associations. The three recognized medallion programs are","page_number":357,"box":{"x":486,"y":830,"width":439,"height":13}},{"id":"57603f4b-f32e-49fe-8e7f-cdfc44bdcf0c","block_type":"box","text":"Securities Transfer Agent Medallion Program (STAMP), Stock Exchanges Medallion Program (SEMP) and New York Stock","page_number":357,"box":{"x":46,"y":846,"width":862,"height":13}},{"id":"043b489e-9218-421e-af58-be37426b42a0","block_type":"box","text":"Exchange, Inc. Medallion Signature Program (MSP). Signature Guarantees which are not a part of these programs will not be","page_number":357,"box":{"x":45,"y":861,"width":871,"height":13}},{"id":"85afeed6-1223-4933-9e36-4ed97606290c","block_type":"box","text":"accepted. 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The effect of changes in the market value of a","page_number":358,"box":{"x":46,"y":158,"width":892,"height":13}},{"id":"018f3590-6bc5-4f94-aae2-6523c3ec38fc","block_type":"box","text":"security as a result of fluctuating interest rates is not taken into account.","page_number":358,"box":{"x":46,"y":173,"width":497,"height":13}},{"id":"fa13f09b-e7af-4905-a374-4703086aec87","block_type":"box","text":"As indicated, the amortized cost method of valuation may result in the value of a security being higher or lower than its market","page_number":358,"box":{"x":45,"y":196,"width":882,"height":13}},{"id":"cc60bf37-5788-4759-9231-55c79e91b68b","block_type":"box","text":"price, the price a Fund would receive if the security were sold prior to maturity. Each Fund’s Board has established procedures for","page_number":358,"box":{"x":45,"y":212,"width":900,"height":13}},{"id":"c35d56d9-952c-4901-b6b6-dc7f07a42133","block_type":"box","text":"the purpose of maintaining a constant NAV of $1.00 per share for each Fund; however, there can be no assurance that a constant","page_number":358,"box":{"x":45,"y":227,"width":901,"height":13}},{"id":"96023df0-853a-4bec-a68d-4e0de42b498f","block_type":"box","text":"NAV will be maintained for any Fund. Such procedures include a review of the extent of any deviation of NAV per share, based","page_number":358,"box":{"x":45,"y":243,"width":890,"height":13}},{"id":"cb992451-7d34-43c2-9e21-b3e658182245","block_type":"box","text":"on available market quotations, from the $1.00 amortized cost per share.","page_number":358,"box":{"x":46,"y":258,"width":507,"height":13}},{"id":"0c212759-9ce9-4e28-baae-7470117980f2","block_type":"box","text":"Should that deviation exceed","page_number":358,"box":{"x":46,"y":281,"width":199,"height":10}},{"id":"32e3ce3a-18b5-4ace-b5e8-a98a95e0dc05","block_type":"box","text":"1⁄","page_number":358,"box":{"x":253,"y":282,"width":4,"height":6}},{"id":"c5efb07f-278f-4da1-ad33-9543164a4f40","block_type":"box","text":"1⁄2","page_number":358,"box":{"x":255,"y":282,"width":9,"height":9}},{"id":"a98e2aa8-3714-45ef-a862-05288ca2941c","block_type":"box","text":"⁄2","page_number":358,"box":{"x":262,"y":285,"width":6,"height":6}},{"id":"7dbc24ef-43e2-42c6-beb9-eb95e86cb49e","block_type":"box","text":"of 1% for a Fund, the Fund’s Board will promptly consider whether any action should be","page_number":358,"box":{"x":274,"y":281,"width":620,"height":13}},{"id":"141d455b-76a8-4feb-9f09-7ec8a4ebe4f7","block_type":"box","text":"initiated to eliminate or reduce material dilution or other adv","page_number":358,"box":{"x":45,"y":297,"width":424,"height":10}},{"id":"48ccfd6f-c2fc-433c-a8d9-8088cde366bc","block_type":"box","text":"erse impact to shareholders. Such action may include redeeming","page_number":358,"box":{"x":469,"y":297,"width":443,"height":13}},{"id":"13dad6ce-31f7-49e9-94d6-c4029202f606","block_type":"box","text":"shares in kind, selling portfolio securities prior to maturity, reducing or withholding dividends, shortening the average portfolio","page_number":358,"box":{"x":46,"y":312,"width":882,"height":13}},{"id":"7f6cd7f2-ab97-4399-a3bd-1d4438f051dc","block_type":"box","text":"maturity, and utilizing a NAV per share as determined by using available market quotations.","page_number":358,"box":{"x":45,"y":328,"width":643,"height":13}},{"id":"e96b0e97-8353-4210-a30f-8d28a2d37f00","block_type":"box","text":"Each Fund will maintain a dollar-weighted average portfolio maturity of 60 days or less, a dollar-weighted average life of 120","page_number":358,"box":{"x":45,"y":351,"width":872,"height":12}},{"id":"e5a59e27-2147-407c-b427-c375c0384776","block_type":"box","text":"days or less, will not purchase any instrument with a deemed maturity under Rule 2a-7 of the Investment Company Act greater","page_number":358,"box":{"x":46,"y":366,"width":883,"height":13}},{"id":"68706217-03db-4ccd-9f56-e26ec4952276","block_type":"box","text":"than 397 days, and will limit portfolio investments, including repu","page_number":358,"box":{"x":45,"y":382,"width":461,"height":12}},{"id":"5fa188b9-1dc9-451d-b359-cff27d263f5c","block_type":"box","text":"rchase agreements, to those instruments that the adviser or","page_number":358,"box":{"x":506,"y":382,"width":407,"height":12}},{"id":"fb219d06-7289-4a65-be24-083d6d27d46c","block_type":"box","text":"sub-adviser determines to be “eligible securities” under Rule 2a-7 pursuant to guidelines adopted by a Fund’s Board.","page_number":358,"box":{"x":46,"y":397,"width":807,"height":13}},{"id":"d6bb8564-e738-40a2-8d69-22b8c5170bf0","block_type":"box","text":"Y","page_number":358,"box":{"x":422,"y":436,"width":12,"height":9}},{"id":"a4921ba8-6402-440a-9334-7e87b71d4221","block_type":"box","text":"IELD","page_number":358,"box":{"x":434,"y":438,"width":31,"height":7}},{"id":"d13faa6e-214b-4f32-9944-0e61ebd07c08","block_type":"box","text":"I","page_number":358,"box":{"x":471,"y":436,"width":5,"height":9}},{"id":"b0ad297e-829d-4cfe-971c-e07b3385a99e","block_type":"box","text":"NFORMATION","page_number":358,"box":{"x":476,"y":438,"width":101,"height":7}},{"id":"c46e32fb-ad3f-4f3f-8fad-7c06896cfde1","block_type":"box","text":"Each Fund computes its annualized yield in accordance with regulations adopted by the Commission by determining the net","page_number":358,"box":{"x":45,"y":460,"width":861,"height":13}},{"id":"102fccf7-133d-438c-b5f8-45500324b4e6","block_type":"box","text":"changes in value, exclusive of capital changes and income oth","page_number":358,"box":{"x":45,"y":476,"width":426,"height":12}},{"id":"083adcf5-759d-4a58-82fc-3cd9b9ae82c3","block_type":"box","text":"er than investment income, for a seven-day base period for a","page_number":358,"box":{"x":472,"y":476,"width":418,"height":12}},{"id":"31835a5b-ed2b-4f81-8c87-551b5757fccd","block_type":"box","text":"hypothetical pre-existing account having a balance of one share a","page_number":358,"box":{"x":45,"y":491,"width":453,"height":13}},{"id":"7edde270-ec56-45ce-a7c0-9e30bf0dfb00","block_type":"box","text":"t the beginning of the base period, subtracting a hypothetical","page_number":358,"box":{"x":498,"y":491,"width":421,"height":13}},{"id":"c0bf836e-f22b-4bd6-aef0-fcbb25466400","block_type":"box","text":"shareholder account charge, and dividing the difference by the","page_number":358,"box":{"x":46,"y":507,"width":430,"height":12}},{"id":"df9afd81-955f-4326-80ec-69adeee179b3","block_type":"box","text":"value of the account at the beginning of the base period to obtain","page_number":358,"box":{"x":481,"y":507,"width":453,"height":12}},{"id":"bdbe646f-60cd-4083-99a3-6f34873aeee3","block_type":"box","text":"the base period return, and then multiplying the result by 365 and then dividing by seven. This yield calculation does not take into","page_number":358,"box":{"x":45,"y":522,"width":903,"height":13}},{"id":"af72ecd4-bffc-41b8-a955-ded854a24daf","block_type":"box","text":"consideration any realized or unrealized gains or losses on portfo","page_number":358,"box":{"x":45,"y":538,"width":450,"height":12}},{"id":"490670c6-ef3e-4845-8e31-97624faf293c","block_type":"box","text":"lio securities. The Commission also permits the calculation of a","page_number":358,"box":{"x":496,"y":538,"width":438,"height":12}},{"id":"63a9dce3-467e-4585-ac4b-73dcbc9c0f7f","block_type":"box","text":"standardized effective or compounded yield. This is computed","page_number":358,"box":{"x":46,"y":553,"width":429,"height":13}},{"id":"2dbac1ca-8f71-4195-98ec-1f4ebb34a7cd","block_type":"box","text":"by compounding the unannualized base period return, which is","page_number":358,"box":{"x":480,"y":553,"width":438,"height":13}},{"id":"62e4e89a-d091-4eb5-baf8-01900f0a8a47","block_type":"box","text":"done by adding one to the base period return, raising the sum to a pow","page_number":358,"box":{"x":46,"y":569,"width":492,"height":12}},{"id":"022454e8-4044-4cea-9cb1-89d730131317","block_type":"box","text":"er equal to 365 divided by seven, and subtracting one from","page_number":358,"box":{"x":539,"y":569,"width":409,"height":12}},{"id":"0a767043-5388-4417-8ab4-2df0adae0d4d","block_type":"box","text":"the result. This compounded yield calculation also excludes realized and unrealized gains or losses on portfolio securities.","page_number":358,"box":{"x":45,"y":584,"width":839,"height":13}},{"id":"706df8cf-213d-403a-ae15-d3857e1cf01c","block_type":"box","text":"The yield on each Fund’s shares normally will fluctuate on a daily basis. Therefore, the yield for any given past period is not an","page_number":358,"box":{"x":45,"y":607,"width":881,"height":13}},{"id":"02d98da8-b1fa-4a12-97c2-3be1dea3ae9a","block_type":"box","text":"indication or representation by a Fund of future yields or rates of return on its shares. The yield is affected by such factors as","page_number":358,"box":{"x":45,"y":622,"width":863,"height":13}},{"id":"1faef4ef-0955-42d9-bf21-ab7daea36426","block_type":"box","text":"changes in interest rates on a Fund’s portfolio securities, average portfolio maturity, the types and quality of portfolio securities","page_number":358,"box":{"x":45,"y":638,"width":882,"height":13}},{"id":"b2d2d064-24e3-4536-a53e-bf3bb3cea313","block_type":"box","text":"held and operating expenses. The yield on Fund shares for various reasons may not be comparable to the yield on bank deposits,","page_number":358,"box":{"x":45,"y":653,"width":893,"height":13}},{"id":"b308cc1c-6035-49a2-b954-c929f56460f8","block_type":"box","text":"shares of other money market funds or other investments.","page_number":358,"box":{"x":46,"y":669,"width":400,"height":13}},{"id":"9b5b258b-3551-4a34-adf5-f6805604c737","block_type":"box","text":"See “Yield Information” in Part I of each Fund’s SAI for recent seven-day yield information relating to your Fund.","page_number":358,"box":{"x":46,"y":692,"width":789,"height":13}},{"id":"c652d477-9a5a-436a-bf9c-ae808985e9b8","block_type":"box","text":"On occasion, each Fund may compare its yield to (1) an industry average compiled by Donoghue’s Money Fund Report, a widely","page_number":358,"box":{"x":46,"y":715,"width":898,"height":12}},{"id":"154b7e63-3dc3-4231-83e3-38835a31c467","block_type":"box","text":"recognized independent publication that monitors the performanc","page_number":358,"box":{"x":45,"y":730,"width":457,"height":13}},{"id":"50f98ea7-b822-4432-846b-8530561b1c15","block_type":"box","text":"e of money market mutual funds, (2) the average yield reported","page_number":358,"box":{"x":503,"y":730,"width":439,"height":13}},{"id":"aa5ccebc-7e62-4f7b-9cee-ee7d6baca067","block_type":"box","text":"by the Bank Rate Monitor National Index","page_number":358,"box":{"x":46,"y":746,"width":293,"height":13}},{"id":"88b23199-5b0e-4bc5-bb82-f4c64fc14b04","block_type":"box","text":"TM","page_number":358,"box":{"x":339,"y":746,"width":18,"height":6}},{"id":"7075b4f6-a07a-4955-a284-819261353336","block_type":"box","text":"for money market deposit accounts offered by the 100 leading banks and thrift","page_number":358,"box":{"x":361,"y":746,"width":548,"height":13}},{"id":"8d3d8f26-42f8-47d2-8689-9cd08d134b77","block_type":"box","text":"institutions in the ten largest standard metropolitan statistical areas, (3) yield data published by industry publications, including","page_number":358,"box":{"x":45,"y":761,"width":884,"height":13}},{"id":"fa8b245a-8839-4490-b108-2e4e4db541f8","block_type":"box","text":"Lipper Inc., Morningstar, Inc.,","page_number":358,"box":{"x":46,"y":777,"width":210,"height":13}},{"id":"a3e9a287-5bf6-4e6e-886c-531821c9dd54","block_type":"box","text":"Money Magazine, U.S. News & World Report, BusinessWeek, CDA Investment Technology, Inc.,","page_number":358,"box":{"x":261,"y":777,"width":686,"height":13}},{"id":"b65980da-2be4-4a7e-a752-16a8fc61ae33","block_type":"box","text":"Forbes Magazine","page_number":358,"box":{"x":45,"y":792,"width":118,"height":13}},{"id":"88586b1a-3f6b-4a0b-bd7c-8aaa0238f184","block_type":"box","text":"and","page_number":358,"box":{"x":169,"y":792,"width":25,"height":10}},{"id":"ac1edd03-6d34-48f6-9d97-fc4fb7a2e01a","block_type":"box","text":"Fortune Magazine","page_number":358,"box":{"x":199,"y":793,"width":126,"height":12}},{"id":"600dbabf-3b2e-4661-8dde-9484974964e9","block_type":"box","text":", or (4) the yield on an investment in 90-day Treasury bills on a rolling basis, assuming","page_number":358,"box":{"x":326,"y":792,"width":599,"height":13}},{"id":"8c591ee5-2af4-4bd4-a50f-8aab4f550cfd","block_type":"box","text":"quarterly compounding. As with yield quotations, yield compar","page_number":358,"box":{"x":46,"y":808,"width":441,"height":13}},{"id":"df47c267-30dd-4471-a5c7-9c39fa0becea","block_type":"box","text":"isons should not be considered indicative of a Fund’s yield or","page_number":358,"box":{"x":488,"y":808,"width":422,"height":13}},{"id":"30c81212-a95d-4e86-99de-68be845d13a4","block_type":"box","text":"relative performance for any future period.","page_number":358,"box":{"x":45,"y":823,"width":296,"height":13}},{"id":"b7554cd5-a399-46c1-a6b8-d1dce9b210be","block_type":"box","text":"A Fund may provide information designed to help investor","page_number":358,"box":{"x":45,"y":846,"width":408,"height":13}},{"id":"ea42c32c-16bc-4d88-9371-50dc46fa858b","block_type":"box","text":"s understand how the Fund is seeking to achieve its investment","page_number":358,"box":{"x":454,"y":846,"width":434,"height":13}},{"id":"5b313172-946f-4515-9727-9ef58de2297c","block_type":"box","text":"objective. This may include information about past, current or possible economic, market, political, or other conditions,","page_number":358,"box":{"x":46,"y":862,"width":832,"height":12}},{"id":"4931c66f-e36d-4d5b-8615-5dd11249754b","block_type":"box","text":"descriptive information on general principles of investing such as a","page_number":358,"box":{"x":46,"y":877,"width":460,"height":13}},{"id":"6fb5b5f9-604b-4b10-9532-a83132316145","block_type":"box","text":"sset allocation, diversification and risk tolerance; a discussion of","page_number":358,"box":{"x":507,"y":877,"width":444,"height":12}},{"id":"0486b1d7-4b7c-4c57-96bf-6f8477c285dc","block_type":"box","text":"II-54","page_number":358,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"059da28d-ec64-4675-8d29-8371c0fceba1","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":358,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"fd9ce773-5f18-4a96-bf65-28a2e35310a7","block_type":"box","text":"a Fund’s portfolio composition, investment philosophy, strategy o","page_number":359,"box":{"x":46,"y":79,"width":456,"height":13}},{"id":"5c7fd151-e33b-48b2-9ca3-1df052f1bbff","block_type":"box","text":"r investment techniques; comparisons of a Fund’s performance","page_number":359,"box":{"x":503,"y":79,"width":434,"height":13}},{"id":"6a759272-0455-4fb9-8d99-fbb4952c9cf4","block_type":"box","text":"or portfolio composition to that of other funds or types of investments, to indices relevant to the comparison being made, or to a","page_number":359,"box":{"x":46,"y":94,"width":893,"height":13}},{"id":"dfb386b5-8250-4ab8-93c6-f3b439f36227","block_type":"box","text":"hypothetical or model portfolio. Each Fund may also quote various measures of volatility and benchmark correlation in","page_number":359,"box":{"x":45,"y":110,"width":831,"height":13}},{"id":"9da6c690-ade4-4d4e-8f3a-d50f72ab9d18","block_type":"box","text":"advertising and other materials, and may compare these measures to those of other funds or types of investments.","page_number":359,"box":{"x":46,"y":125,"width":785,"height":13}},{"id":"efaa7021-96cc-454a-aa62-20aa7184c381","block_type":"box","text":"P","page_number":359,"box":{"x":399,"y":160,"width":9,"height":9}},{"id":"00e3fc6a-ccca-45c3-8f91-f3296234ecfb","block_type":"box","text":"ORTFOLIO","page_number":359,"box":{"x":408,"y":162,"width":74,"height":7}},{"id":"5b1f4279-d6fc-4ace-a05a-f76bd1296bab","block_type":"box","text":"T","page_number":359,"box":{"x":487,"y":159,"width":12,"height":10}},{"id":"0887c6cd-02cd-4975-a51a-6bf432f0fcdc","block_type":"box","text":"RANSACTIONS","page_number":359,"box":{"x":499,"y":162,"width":101,"height":7}},{"id":"46a8fb07-5f2d-49e4-b6ff-5697973d75a4","block_type":"box","text":"Subject to policies established by the Board of each Fund, the Manager is primarily responsible for the execution of a Fund’s","page_number":359,"box":{"x":46,"y":187,"width":861,"height":12}},{"id":"0db8931e-1e75-4503-b2a5-f81bd7babc6d","block_type":"box","text":"portfolio transactions. The Manager does not execute transactions through any particular broker or dealer, but seeks to obtain the","page_number":359,"box":{"x":45,"y":202,"width":906,"height":13}},{"id":"73daefe2-7a89-48e4-87fc-d25650062f6b","block_type":"box","text":"best net results for the Fund, taking into account such factors a","page_number":359,"box":{"x":46,"y":218,"width":436,"height":12}},{"id":"4e84381d-af95-42cc-85e1-990fc4e6b8d3","block_type":"box","text":"s price (including the applicable dealer spread), size of order,","page_number":359,"box":{"x":483,"y":218,"width":419,"height":12}},{"id":"8f240551-1dff-425a-a54c-94239725c074","block_type":"box","text":"difficulty of execution, operational facilities of the firm and the firm’s risk and skill in positioning blocks of securities. While the","page_number":359,"box":{"x":46,"y":233,"width":885,"height":13}},{"id":"f9e8127e-2a94-4d3b-a3a6-6c42e2877ff0","block_type":"box","text":"Manager generally seeks reasonable trade execution costs, a Fund does not necessarily pay the lowest spread or commission","page_number":359,"box":{"x":45,"y":249,"width":859,"height":12}},{"id":"e807c078-78a7-4fab-9cbd-44a514649df2","block_type":"box","text":"available. Each Fund’s policy of investing in securities with short maturities will result in high portfolio turnover.","page_number":359,"box":{"x":46,"y":264,"width":781,"height":13}},{"id":"c0820fdc-ace2-4917-8fc2-ce2098c7ca39","block_type":"box","text":"Subject to obtaining the best net results, dealers who provide supplemental investment research (such as economic data and","page_number":359,"box":{"x":46,"y":289,"width":854,"height":13}},{"id":"dbe500e6-3a74-49b9-a352-6882b0a0c9a9","block_type":"box","text":"market forecasts) to the Manager may receive orders for transac","page_number":359,"box":{"x":45,"y":304,"width":445,"height":13}},{"id":"8d10ceb0-5c04-4fb4-abd7-0de1bf88832b","block_type":"box","text":"tions of the Fund. Information received will be in addition to and","page_number":359,"box":{"x":491,"y":304,"width":452,"height":10}},{"id":"4e31c1da-8eac-4a27-8230-946c79a0451d","block_type":"box","text":"not in lieu of the services required to be performed by the Manager under each Management Agreement and the expenses of the","page_number":359,"box":{"x":45,"y":320,"width":888,"height":13}},{"id":"3b91ac80-c188-497d-9616-724e7353a9b1","block_type":"box","text":"Manager will not necessarily be reduced as a result of the receipt of such supplemental information.","page_number":359,"box":{"x":45,"y":335,"width":690,"height":13}},{"id":"edf08b3d-c45d-4ef3-8b4a-145e848f0a19","block_type":"box","text":"The portfolio securities in which each Fund invests are traded pr","page_number":359,"box":{"x":45,"y":360,"width":446,"height":13}},{"id":"d3ae3b87-9931-441c-9cf1-8b119099da3c","block_type":"box","text":"imarily in the OTC market. Bonds and debentures usually are","page_number":359,"box":{"x":492,"y":360,"width":428,"height":13}},{"id":"7e0219c4-cfee-448f-96e4-0e06a36f32df","block_type":"box","text":"traded OTC, but may be traded on an exchange. Where possible, a Fund will deal directly with the dealers who make a market in","page_number":359,"box":{"x":45,"y":375,"width":901,"height":13}},{"id":"10a5a3a8-d1fb-4018-9a6b-49e097227613","block_type":"box","text":"the securities involved except in those circumstances where be","page_number":359,"box":{"x":45,"y":391,"width":429,"height":13}},{"id":"4c896027-16af-4fd0-84bd-a4a35ba24d76","block_type":"box","text":"tter prices and execution are available elsewhere. Such dealers","page_number":359,"box":{"x":474,"y":391,"width":428,"height":13}},{"id":"894e757e-6ed6-4167-a645-5e1dafa9b969","block_type":"box","text":"usually are acting as principals for their own accounts. On occasion, securities may be purchased directly from the issuer. Money","page_number":359,"box":{"x":46,"y":406,"width":894,"height":13}},{"id":"3b434a1f-9f09-4b7a-b36d-8897d7bc8608","block_type":"box","text":"market securities are generally traded on a net basis and do not normally involve either brokerage commissions or transfer taxes.","page_number":359,"box":{"x":45,"y":422,"width":892,"height":13}},{"id":"d607673a-bfbe-4fc4-bcf8-d187d522f722","block_type":"box","text":"The cost of executing portfolio securities transactions of a Fund primarily will consist of dealer spreads. Under the Investment","page_number":359,"box":{"x":45,"y":437,"width":872,"height":13}},{"id":"c0e073c1-9a2c-4478-a897-0c355f164acb","block_type":"box","text":"Company Act, persons affiliated with a Fund and persons who are affiliated with such affiliated persons are prohibited from","page_number":359,"box":{"x":46,"y":453,"width":863,"height":13}},{"id":"f353995e-cbde-45a9-b3dc-3d0817b604f9","block_type":"box","text":"dealing with the Fund as principals in the purchase and sale of secu","page_number":359,"box":{"x":46,"y":468,"width":465,"height":13}},{"id":"37d9a4ea-27c6-4fda-ba2a-6c9bdc51600c","block_type":"box","text":"rities unless an exemptive order allowing such transactions is","page_number":359,"box":{"x":512,"y":468,"width":421,"height":13}},{"id":"93418d06-3aa5-48fb-99ab-182823e38a21","block_type":"box","text":"obtained from the Commission. Since transactions in the OTC market usually involve transactions with the dealers acting as","page_number":359,"box":{"x":46,"y":484,"width":863,"height":13}},{"id":"62c05bc1-16d1-4a26-9d46-d9a2e1296d6d","block_type":"box","text":"principals for their own accounts, the Funds will not deal with affiliated persons in connection with such transactions, except","page_number":359,"box":{"x":45,"y":499,"width":868,"height":13}},{"id":"b203fa12-3288-47f5-afd5-bd9ca99c00e0","block_type":"box","text":"pursuant to an applicable exemptive order or as otherwise p","page_number":359,"box":{"x":45,"y":515,"width":417,"height":13}},{"id":"9b0bc804-5e03-4f03-9f75-8c7afb889454","block_type":"box","text":"ermitted by applicable law. However, an affiliated person of a Fund","page_number":359,"box":{"x":463,"y":515,"width":471,"height":13}},{"id":"0f40a122-a7a4-4361-b6ca-44d555f6fc7e","block_type":"box","text":"may serve as its broker in OTC transactions conducted on an agency basis.","page_number":359,"box":{"x":45,"y":530,"width":520,"height":13}},{"id":"d60a6dc9-636f-45b8-a22b-9b14e97dbc3c","block_type":"box","text":"The Manager does not consider sales of shares of the mutual funds it advises as a factor in the selection of brokers or dealers to","page_number":359,"box":{"x":45,"y":555,"width":883,"height":13}},{"id":"3d664a13-463d-4d62-abf1-46653eb16a80","block_type":"box","text":"execute portfolio transactions for a Fund; however, whether or not a particular broker or dealer sells shares of the mutual funds","page_number":359,"box":{"x":46,"y":571,"width":886,"height":12}},{"id":"fe8457fd-e90d-422a-a33f-1030befbff29","block_type":"box","text":"advised by the Manager neither qualifies nor disqualifies such broker or dealer to execute transactions for those mutual funds.","page_number":359,"box":{"x":46,"y":586,"width":873,"height":13}},{"id":"cb172f84-17fc-4d47-86d5-6dd12efbeb98","block_type":"box","text":"OTC issues, including most fixed income securities such as corporate debt and U.S. Government securities, are normally traded on","page_number":359,"box":{"x":46,"y":611,"width":904,"height":12}},{"id":"1c028b27-d59f-4f6d-87cd-76cbb26ec40c","block_type":"box","text":"a “net” basis without a stated commission, through dealers acting for their own account and not as brokers. The Funds will","page_number":359,"box":{"x":46,"y":626,"width":859,"height":13}},{"id":"d20a797f-51d4-40d5-8f48-216624b174ac","block_type":"box","text":"primarily engage in transactions with these dealers or deal directly with the issuer unless a better price or execution could be","page_number":359,"box":{"x":45,"y":642,"width":860,"height":13}},{"id":"69b4c7a8-2108-4471-837f-c6505fcd1a53","block_type":"box","text":"obtained by using a broker. Prices paid to a dealer with respect to both non-U.S. and domestic securities will generally include a","page_number":359,"box":{"x":46,"y":657,"width":885,"height":13}},{"id":"593cdeab-38ee-4907-abdb-4746fba70ba1","block_type":"box","text":"“spread,” which is the difference between the prices at which the","page_number":359,"box":{"x":47,"y":673,"width":448,"height":13}},{"id":"36199c1d-07a2-4133-bd26-0b9b88b97522","block_type":"box","text":"dealer is willing to purchase and sell the specific security at the","page_number":359,"box":{"x":501,"y":673,"width":432,"height":13}},{"id":"2fe9066d-7d33-4eb6-bc29-1aac0577edaf","block_type":"box","text":"time, and includes the dealer’s normal profit.","page_number":359,"box":{"x":45,"y":688,"width":311,"height":13}},{"id":"2b273d99-44c6-4cd0-8012-8da5578ce345","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds do not currently","page_number":359,"box":{"x":45,"y":713,"width":888,"height":13}},{"id":"a183eead-5e6c-48bc-8438-984a4f6c8ab0","block_type":"box","text":"expect to incur any brokerage commission expense on such transactions because money market instruments are generally traded","page_number":359,"box":{"x":46,"y":728,"width":890,"height":13}},{"id":"83b6551d-aa78-4bdb-a728-0ee30da0e293","block_type":"box","text":"on a “net” basis with dealers acting as principal for their own accounts without a stated commission. The price of the security,","page_number":359,"box":{"x":46,"y":744,"width":877,"height":13}},{"id":"ceb1ef6d-1fa0-4656-886c-3735dca92914","block_type":"box","text":"however, usually includes a profit to the dealer. Each money market Fund (each a “Money Market Fund”) intends to purchase","page_number":359,"box":{"x":45,"y":759,"width":881,"height":13}},{"id":"a2c83411-282b-4ec4-9cdb-bb03861f5706","block_type":"box","text":"only securities with remaining maturities of 397 days or less as determined in accordance with the rules of the Commission. As a","page_number":359,"box":{"x":46,"y":775,"width":890,"height":13}},{"id":"977e7c52-ec01-4a54-b5ca-5112a26637a1","block_type":"box","text":"result, the portfolio turnover rates of a Money Market Fund will be relatively high. However, because brokerage commissions will","page_number":359,"box":{"x":45,"y":790,"width":905,"height":13}},{"id":"60d0c136-05c9-47c2-9ec2-34950ba3f3d5","block_type":"box","text":"not normally be paid with respect to investments made by a Money Market Fund, the turnover rates should not adversely affect","page_number":359,"box":{"x":45,"y":806,"width":889,"height":13}},{"id":"3017f2f0-5cbc-4609-bec3-1780482f7a38","block_type":"box","text":"the Fund’s NAVs or net income.","page_number":359,"box":{"x":45,"y":821,"width":224,"height":10}},{"id":"eb9d4e47-a36f-4e75-bdc4-03f63aa19d79","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed","page_number":359,"box":{"x":46,"y":846,"width":423,"height":13}},{"id":"05d243aa-6c4d-4df2-828d-49ff06530bcc","block_type":"box","text":"amount of compensation to the underwriter, generally referred to as","page_number":359,"box":{"x":474,"y":846,"width":472,"height":13}},{"id":"28261367-2fcb-4c59-a2e9-21fbdf376b96","block_type":"box","text":"the underwriter’s concession or discount. When offered securities are purchased or sold directly from or to an issuer, no","page_number":359,"box":{"x":45,"y":861,"width":830,"height":13}},{"id":"5ae61b8a-4445-42b8-aea1-fcc0b6c8a3c7","block_type":"box","text":"commissions or discounts are paid except where required by local markets.","page_number":359,"box":{"x":45,"y":877,"width":520,"height":13}},{"id":"759d20b0-7e1a-426e-afee-af8ba9b21164","block_type":"box","text":"II-55","page_number":359,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"6ae0297c-0357-40e5-b78e-2848f891502c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":359,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"40f807b8-5a42-4b81-b21c-2baaae938993","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers selling commercial","page_number":360,"box":{"x":45,"y":79,"width":891,"height":13}},{"id":"061e9f84-c86a-42e8-bd83-a00fa573a2f4","block_type":"box","text":"paper to consider the repurchase of such securities from a Fund pr","page_number":360,"box":{"x":45,"y":94,"width":459,"height":13}},{"id":"66c59bbf-4907-42f2-a9f9-d1c9466a690d","block_type":"box","text":"ior to maturity at their original cost plus interest (sometimes","page_number":360,"box":{"x":505,"y":94,"width":416,"height":13}},{"id":"fdc2b259-bc25-4aaa-a506-b93fc2d02f74","block_type":"box","text":"adjusted to reflect the actual maturity of the securities), if it belie","page_number":360,"box":{"x":46,"y":110,"width":446,"height":13}},{"id":"9d007b43-b850-4d43-a6f5-ebfb7f1518d7","block_type":"box","text":"ves that a Fund’s anticipated need for liquidity makes such action","page_number":360,"box":{"x":492,"y":110,"width":454,"height":13}},{"id":"94e4c276-99b7-43c0-9d99-026d8b4d0c75","block_type":"box","text":"desirable. Any such repurchase prior to maturity reduces the possibility that a Fund would incur a capital loss in liquidating","page_number":360,"box":{"x":46,"y":125,"width":857,"height":13}},{"id":"958958c3-3e35-45f9-8821-2d357e37e4c2","block_type":"box","text":"commercial paper, especially if interest rates have risen since acquisition of such commercial paper.","page_number":360,"box":{"x":45,"y":141,"width":685,"height":13}},{"id":"1e1432f9-1bae-48e1-bf7a-8bcf58138baf","block_type":"box","text":"Investment decisions for each Fund and for other investme","page_number":360,"box":{"x":45,"y":164,"width":405,"height":10}},{"id":"db413d41-ea41-41f8-8e95-56c8a1bfa792","block_type":"box","text":"nt accounts managed by the Manager or sub-advisers are made","page_number":360,"box":{"x":451,"y":164,"width":438,"height":13}},{"id":"834154c6-d55c-4899-8fe1-48ce0754405f","block_type":"box","text":"independently of each other in light of differing conditions. Black","page_number":360,"box":{"x":45,"y":180,"width":452,"height":12}},{"id":"781d9c2a-8148-45f5-92a9-872410ea31fd","block_type":"box","text":"Rock allocates investments among client accounts in a fair and","page_number":360,"box":{"x":498,"y":180,"width":435,"height":12}},{"id":"89d845ea-64b5-4614-9bab-d1f76f7eba1d","block_type":"box","text":"equitable manner. A variety of factors will be considered in making such allocations. These factors include: (i) investment","page_number":360,"box":{"x":46,"y":195,"width":840,"height":13}},{"id":"8594c1a4-5dd0-44ed-9ddf-b392ebd4fb37","block_type":"box","text":"objectives or strategies for particular accounts, including sector, industry, country or region and capitalization weightings, (ii) tax","page_number":360,"box":{"x":46,"y":211,"width":895,"height":12}},{"id":"0b68b1e8-734c-43c6-bc52-975c702adf24","block_type":"box","text":"considerations of an account, (iii) risk or investment concentration parameters for an account, (iv) supply or demand for a security","page_number":360,"box":{"x":45,"y":226,"width":906,"height":13}},{"id":"1aef151b-c88c-4146-8149-88be0ca68116","block_type":"box","text":"at a given price level, (v) size of available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory","page_number":360,"box":{"x":46,"y":242,"width":899,"height":12}},{"id":"b42ad63a-4054-4d25-ba6e-372b4d84c21e","block_type":"box","text":"restrictions, (viii) minimum investment size of an account, (ix","page_number":360,"box":{"x":45,"y":257,"width":425,"height":12}},{"id":"e9dc91e2-7e99-46a0-957a-44f92303ae08","block_type":"box","text":") relative size of account, and (x) such other factors as may be","page_number":360,"box":{"x":471,"y":257,"width":427,"height":13}},{"id":"e6337feb-7cb3-4a24-945b-bd795275607c","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over another based","page_number":360,"box":{"x":46,"y":273,"width":891,"height":12}},{"id":"2cc2bd94-facd-44ff-b263-bf7160c607a6","block_type":"box","text":"on any of the following considerations: (i) to favor one client account at the expense of another, (ii) to generate higher fees paid by","page_number":360,"box":{"x":46,"y":288,"width":904,"height":13}},{"id":"e41c1c8a-85db-4f4f-8c3b-577de038bedf","block_type":"box","text":"one client account over another or to produce greater performance compensation to BlackRock, (iii) to develop or enhance a","page_number":360,"box":{"x":46,"y":304,"width":864,"height":12}},{"id":"216b0a79-0b42-4a45-b44c-16a456f00223","block_type":"box","text":"relationship with a client or prospective client, (iv) to compensate a client for past services or benefits rendered to BlackRock or to","page_number":360,"box":{"x":45,"y":319,"width":902,"height":13}},{"id":"864e881f-0865-44d3-9ab4-91b3bba25cb9","block_type":"box","text":"induce future services or benefits to be rendered to BlackRock,","page_number":360,"box":{"x":45,"y":335,"width":433,"height":12}},{"id":"449f9274-3fb6-4b01-be16-22b1a4eddf6c","block_type":"box","text":"or (v) to manage or equalize investment performance among","page_number":360,"box":{"x":484,"y":335,"width":419,"height":12}},{"id":"2c8ee65e-b915-4abe-91d4-06784c0cc573","block_type":"box","text":"different client accounts.","page_number":360,"box":{"x":46,"y":350,"width":168,"height":10}},{"id":"5ab0463a-f780-4d33-9fe6-35d27b17dae2","block_type":"box","text":"Because of different objectives or other factors, a particular security may be bought for one or more funds or clients advised by","page_number":360,"box":{"x":46,"y":373,"width":878,"height":13}},{"id":"8a133f06-4984-45eb-a85a-04503f84f943","block_type":"box","text":"BlackRock or its affiliates (collectively, “clients”) when one or more clients of BlackRock or its affiliates are selling the same","page_number":360,"box":{"x":46,"y":389,"width":859,"height":13}},{"id":"cd64a51c-3bec-44b8-94bd-ebc6c60d1ed0","block_type":"box","text":"security. If purchases or sales of securities arise for consideration at or about the same time that would involve a Fund or other","page_number":360,"box":{"x":46,"y":404,"width":877,"height":13}},{"id":"8623737f-ff21-403e-81a8-8a7172e06363","block_type":"box","text":"clients or funds for which BlackRock or an affiliate acts as investment manager, transactions in such securities will be made,","page_number":360,"box":{"x":45,"y":420,"width":860,"height":13}},{"id":"b8e88907-a29d-46a9-ae6e-93ccda85a708","block_type":"box","text":"insofar as feasible, for the respective funds and clients in a manner deemed equitable to all. To the extent that transactions on","page_number":360,"box":{"x":45,"y":435,"width":869,"height":13}},{"id":"492ce441-e380-4586-9b89-19251eb7ada3","block_type":"box","text":"behalf of more than one client of BlackRock or its affiliates during the same period may increase the demand for securities being","page_number":360,"box":{"x":46,"y":451,"width":888,"height":13}},{"id":"f65d7448-e700-4919-bf58-cc9a25d4ac2f","block_type":"box","text":"purchased or the supply of securities being sold, there may be an adverse effect on price.","page_number":360,"box":{"x":45,"y":466,"width":609,"height":13}},{"id":"f7c672fc-205d-4468-b10d-a48639c07c20","block_type":"box","text":"See “Portfolio Transactions” or “Portfolio Transactions and Brokerage,” as applicable, in Part I of each Fund’s SAI for","page_number":360,"box":{"x":46,"y":490,"width":825,"height":12}},{"id":"0fd6d963-b5a7-4eca-9543-f86b8fc8d98d","block_type":"box","text":"information relating to portfolio transactions engaged in by your","page_number":360,"box":{"x":45,"y":505,"width":450,"height":13}},{"id":"4f32e60c-94b4-4e27-8c2e-7108a2a4b96c","block_type":"box","text":"Fund for its three most recently completed fiscal years or other","page_number":360,"box":{"x":500,"y":505,"width":434,"height":13}},{"id":"bf61d46f-b070-486f-82ca-64a1436a8069","block_type":"box","text":"relevant periods.","page_number":360,"box":{"x":45,"y":521,"width":114,"height":12}},{"id":"0f8365cd-79e3-4491-9419-cc2a6416fe1f","block_type":"box","text":"The Board of each Fund has considered the possibility of seeking to recapture for the benefit of the Fund expenses of possible","page_number":360,"box":{"x":45,"y":544,"width":869,"height":13}},{"id":"76f8bf12-687c-4c43-a670-d5ae233bdfcb","block_type":"box","text":"portfolio transactions, such as dealer spreads and underwriting commissions, by conducting portfolio transactions through","page_number":360,"box":{"x":45,"y":559,"width":852,"height":13}},{"id":"d26a9ad7-fbd5-460d-9add-ca31259a1454","block_type":"box","text":"affiliated entities. After considering all factors deemed relevan","page_number":360,"box":{"x":46,"y":575,"width":427,"height":13}},{"id":"14399875-a735-4c25-b834-d5ee094dcbc0","block_type":"box","text":"t, the Board of each Fund made a determination not to seek such","page_number":360,"box":{"x":473,"y":575,"width":450,"height":12}},{"id":"d05b21ef-a305-4d63-a082-2b9db1ebe193","block_type":"box","text":"recapture. The Board of each Fund will reconsider this matter from time to time.","page_number":360,"box":{"x":45,"y":590,"width":559,"height":13}},{"id":"926aa94f-5365-43f1-9a7e-5f02487823a4","block_type":"box","text":"Each Fund has received an exemptive order from the Commission p","page_number":360,"box":{"x":45,"y":614,"width":471,"height":12}},{"id":"a718f80b-c934-40d2-bc19-91229e645894","block_type":"box","text":"ermitting it to lend portfolio securities to its affiliates. Pursuant","page_number":360,"box":{"x":517,"y":614,"width":435,"height":12}},{"id":"dfd9c3c7-c68d-4c46-9ba1-77bce812c303","block_type":"box","text":"to that order, each Fund may retain an affiliated entity of the Manager (the “lending agent”) as the securities lending agent for a","page_number":360,"box":{"x":45,"y":629,"width":889,"height":13}},{"id":"1c97ae03-5965-4785-986c-cf2265976951","block_type":"box","text":"fee, including a fee based on a share of the returns on investment of cash collateral. The lending agent may, on behalf of a Fund,","page_number":360,"box":{"x":45,"y":645,"width":888,"height":12}},{"id":"57e72af6-a2c6-4b85-a66c-7ab171050733","block_type":"box","text":"invest cash collateral received by the Fund for such loans, among other things, in a private investment company managed by the","page_number":360,"box":{"x":45,"y":660,"width":887,"height":13}},{"id":"c1257cf6-3920-4693-873f-a4397495bc6c","block_type":"box","text":"lending agent or in registered money market funds advised by the Manager or its affiliates. See “Portfolio Transactions” or","page_number":360,"box":{"x":45,"y":676,"width":852,"height":12}},{"id":"f42e1a2a-806c-4c9d-83d2-1f0e33376764","block_type":"box","text":"“Portfolio Transactions and Brokerage,” as applicable, in Part I of each Fund’s SAI for the securities lending agent fees, if any,","page_number":360,"box":{"x":47,"y":691,"width":873,"height":13}},{"id":"89596027-af1d-44b4-85be-223cf0b5afed","block_type":"box","text":"paid by your Fund to the lending agent for the periods indicated.","page_number":360,"box":{"x":45,"y":707,"width":448,"height":12}},{"id":"114ce959-71a9-41b1-986d-389d802903cf","block_type":"box","text":"Because of different objectives or other factors, a particular security may be bought for one or more funds or clients advised by the","page_number":360,"box":{"x":46,"y":730,"width":904,"height":13}},{"id":"79882f6c-9a0e-4ee5-9f9b-9b5ff3eef152","block_type":"box","text":"Manager or its affiliates (collectively, “clients”) when one or more clients of the Manager or its affiliates are selling the same","page_number":360,"box":{"x":45,"y":745,"width":862,"height":13}},{"id":"d3aa835a-f4ab-4793-8662-96b4951a6c67","block_type":"box","text":"security. If purchases or sales of securities arise for consideration at or about the same time that would involve a Fund or other","page_number":360,"box":{"x":46,"y":761,"width":877,"height":13}},{"id":"682dfdb7-7a3a-43ee-84e1-eb9cc8c54c65","block_type":"box","text":"clients or funds for which the Manager or an affiliate acts as investment manager, transactions in such securities will be made,","page_number":360,"box":{"x":45,"y":776,"width":874,"height":13}},{"id":"055ab968-b27a-4b50-a9d1-5c921850b854","block_type":"box","text":"insofar as feasible, for the respective funds and clients in a manner deemed equitable to all. To the extent that transactions on","page_number":360,"box":{"x":45,"y":792,"width":869,"height":13}},{"id":"210aae65-d662-4c9b-abad-0adba9199a07","block_type":"box","text":"behalf of more than one client of the Manager or its affiliates during the same period may increase the demand for securities being","page_number":360,"box":{"x":46,"y":807,"width":902,"height":13}},{"id":"2567ac1d-5d6c-47ee-87c2-28cee1681da1","block_type":"box","text":"purchased or the supply of securities being sold, there may be an adverse effect on price.","page_number":360,"box":{"x":45,"y":823,"width":609,"height":13}},{"id":"e82f3fa5-dacf-4038-bf86-f0cab4d83234","block_type":"box","text":"II-56","page_number":360,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"730c961f-c8d1-45ed-93b6-d47900298309","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":360,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"13bf1fa2-9711-4797-88f7-cfb6964506ef","block_type":"box","text":"D","page_number":361,"box":{"x":415,"y":80,"width":12,"height":9}},{"id":"14a061e2-0b2b-47b2-ba57-0d7ef24bc760","block_type":"box","text":"IVIDENDS AND","page_number":361,"box":{"x":428,"y":82,"width":103,"height":7}},{"id":"ea70feeb-59c9-414c-a70f-5d2eba85438f","block_type":"box","text":"T","page_number":361,"box":{"x":536,"y":79,"width":12,"height":10}},{"id":"75e26730-2924-43f1-a86d-f2c9e3b663db","block_type":"box","text":"AXES","page_number":361,"box":{"x":548,"y":82,"width":35,"height":7}},{"id":"27860ba9-9556-4e99-91f3-42f23511acd3","block_type":"box","text":"Dividends","page_number":361,"box":{"x":45,"y":105,"width":72,"height":11}},{"id":"19daa2ef-8efe-467a-a106-7140bceed4d9","block_type":"box","text":"Each Fund declares dividends daily. Except as otherwise provided in a Fund’s Prospectus, dividends of each Fund are reinvested","page_number":361,"box":{"x":45,"y":129,"width":886,"height":13}},{"id":"0ccd671a-92b6-4576-8cc1-9517e6900edd","block_type":"box","text":"monthly in additional shares of that Fund at NAV. Except as oth","page_number":361,"box":{"x":45,"y":145,"width":452,"height":13}},{"id":"488f6498-eb61-4e3a-8cb3-c177d0be7f83","block_type":"box","text":"erwise provided in a Fund’s Prospectus, shares purchased will","page_number":361,"box":{"x":497,"y":145,"width":427,"height":13}},{"id":"37a600fa-6f60-4edd-9ea2-0859754c28c8","block_type":"box","text":"begin accruing dividends on the day following the date of purcha","page_number":361,"box":{"x":46,"y":160,"width":450,"height":13}},{"id":"e4716333-d14b-4256-8ed9-2a5226f2a45e","block_type":"box","text":"se. Until they are paid, dividends that are declared will remain in","page_number":361,"box":{"x":497,"y":160,"width":447,"height":13}},{"id":"cee471fa-5faa-4c2d-aad5-bfa903a8c5ad","block_type":"box","text":"the gross assets of each Fund and will therefore continue to earn income for the Fund’s shareholders. Shareholders will receive","page_number":361,"box":{"x":45,"y":176,"width":874,"height":13}},{"id":"cfbd037d-00db-4f88-80ed-4dbd4a201249","block_type":"box","text":"monthly statements as to such reinvestments.","page_number":361,"box":{"x":45,"y":191,"width":312,"height":13}},{"id":"15f06857-a768-4a24-94cb-d4d7cb5758b4","block_type":"box","text":"Net income (from the time of the immediately preceding determin","page_number":361,"box":{"x":45,"y":215,"width":457,"height":13}},{"id":"95ac9b80-80da-4d2c-9f4d-44a495dee649","block_type":"box","text":"ation thereof) consists of (i) interest accrued and/or discount","page_number":361,"box":{"x":503,"y":215,"width":417,"height":12}},{"id":"467784ff-b403-4077-b3d5-2b523fba40e3","block_type":"box","text":"earned (including both original issue and market discount), (ii) l","page_number":361,"box":{"x":46,"y":231,"width":441,"height":12}},{"id":"72c11bb9-1750-47df-859e-8bee560c0185","block_type":"box","text":"ess amortization of premiums and the estimated expenses of a","page_number":361,"box":{"x":488,"y":231,"width":429,"height":12}},{"id":"6e04d410-bc14-491b-b18b-31c983f990db","block_type":"box","text":"Fund applicable to that dividend period. Net realized capital gains (including net short-term capital gain), if any, will be","page_number":361,"box":{"x":45,"y":246,"width":830,"height":13}},{"id":"5bfb2c9b-b00f-43b4-a7f5-e98ad495596b","block_type":"box","text":"distributed by the Funds at least annually.","page_number":361,"box":{"x":46,"y":262,"width":289,"height":12}},{"id":"3ef34b05-a27b-4be2-9c6a-e9c54c8cdfa6","block_type":"box","text":"Taxes","page_number":361,"box":{"x":45,"y":294,"width":43,"height":10}},{"id":"250ec5e2-6807-45e8-b1e2-542087678000","block_type":"box","text":"Each Fund intends to elect and to qualify or to continue to qualify, as appropriate, for the special tax treatment afforded regulated","page_number":361,"box":{"x":45,"y":321,"width":904,"height":12}},{"id":"120594b1-93b0-4f4e-bc85-8007a1b1dc7e","block_type":"box","text":"investment companies under the Code. As long as a Fund so qualifies, the Fund (but not its shareholders) will not be subject to","page_number":361,"box":{"x":45,"y":336,"width":879,"height":13}},{"id":"6f58845d-8e30-4397-b1de-ec7bfeab1d53","block_type":"box","text":"Federal income tax on the part of its investment company taxable","page_number":361,"box":{"x":45,"y":352,"width":456,"height":12}},{"id":"6c97591d-80e0-41c7-ae25-2751532c8d99","block_type":"box","text":"income and net capital gain that is distributed to shareholders.","page_number":361,"box":{"x":506,"y":352,"width":431,"height":12}},{"id":"8d28ffe4-c3cd-45f0-93fa-c0de80e00039","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 qualify as a","page_number":361,"box":{"x":45,"y":367,"width":863,"height":13}},{"id":"15acbfce-3da6-411e-932c-691b7a16bb46","block_type":"box","text":"regulated investment company under the Code, notwithstanding","page_number":361,"box":{"x":45,"y":383,"width":447,"height":12}},{"id":"6b22a276-1fe0-407b-845a-892cae827507","block_type":"box","text":"the availability of certain relief provisions, such Fund would be","page_number":361,"box":{"x":497,"y":383,"width":436,"height":12}},{"id":"05029d8a-fb30-4a6e-8104-45d8f504ac81","block_type":"box","text":"taxed in the same manner as an ordinary corporation and all distributions from earnings and profits (as determined under Federal","page_number":361,"box":{"x":45,"y":398,"width":902,"height":13}},{"id":"65f8e21b-f407-4589-9f2c-29aadb8436ea","block_type":"box","text":"income tax principles) to its shareholders would be taxable as ordi","page_number":361,"box":{"x":45,"y":414,"width":461,"height":12}},{"id":"b07f1696-fcd9-4e68-a3a7-75d55b2ce1e8","block_type":"box","text":"nary dividend income eligible for taxation at a reduced tax rate","page_number":361,"box":{"x":506,"y":414,"width":438,"height":12}},{"id":"bb88b79f-784f-4f22-8d2f-837efd464663","block_type":"box","text":"for non-corporate shareholders and the dividends","page_number":361,"box":{"x":45,"y":429,"width":343,"height":13}},{"id":"80aabb4e-ae1c-4299-ba34-be82a4ca8f36","block_type":"box","text":"-received deduction for corporate shareholders.","page_number":361,"box":{"x":389,"y":429,"width":326,"height":13}},{"id":"cc51885c-9f45-4a01-aa70-2843f5fe1c7f","block_type":"box","text":"Each Fund that is a series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":361,"box":{"x":45,"y":453,"width":908,"height":13}},{"id":"b70e6a25-f6e8-4376-8161-85005ebcec1a","block_type":"box","text":"Federal income tax purposes, and, therefore, is considered to be a sep","page_number":361,"box":{"x":45,"y":468,"width":481,"height":13}},{"id":"92c5e49f-d9a2-4823-8859-0d3a47dcde7d","block_type":"box","text":"arate entity in determining its treatment under the rules for","page_number":361,"box":{"x":527,"y":468,"width":408,"height":13}},{"id":"8f16db8f-4fec-4184-82fd-6d908840436d","block_type":"box","text":"regulated investment companies. Losses in one series of a regulat","page_number":361,"box":{"x":45,"y":484,"width":448,"height":13}},{"id":"62802a49-0fc8-4c49-b30a-9040713c3bf6","block_type":"box","text":"ed investment company do not offset gains in another, and the","page_number":361,"box":{"x":494,"y":484,"width":433,"height":13}},{"id":"1c6c5a0b-b99b-4d91-a6e3-4cafbdb02275","block_type":"box","text":"requirements (other than certain organizational requirements","page_number":361,"box":{"x":45,"y":499,"width":423,"height":13}},{"id":"8132e093-ec51-461e-a7ad-785f7eeab6c4","block_type":"box","text":") for qualifying for regulated investment company status will be","page_number":361,"box":{"x":470,"y":499,"width":440,"height":13}},{"id":"7e265db1-90de-4ef2-a46f-b9fa443f26d3","block_type":"box","text":"determined at the level of the individual series. In the following discussion, the term “Fund” means each individual series, if","page_number":361,"box":{"x":46,"y":515,"width":856,"height":13}},{"id":"c5cb9fda-2ceb-43e9-9a8e-77ed7196ffc6","block_type":"box","text":"applicable.","page_number":361,"box":{"x":46,"y":530,"width":73,"height":13}},{"id":"f36b788d-6dee-4e14-aef6-62641a084db1","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the regulated investment","page_number":361,"box":{"x":45,"y":554,"width":889,"height":13}},{"id":"b24e7cf7-5ce4-4109-beed-dcb151ccbcb9","block_type":"box","text":"company does not distribute, during each calendar year, at least","page_number":361,"box":{"x":45,"y":570,"width":443,"height":13}},{"id":"7774e2f6-0a03-4925-9bd4-521387c82081","block_type":"box","text":"98% of its ordinary income, determined on a calendar year basis,","page_number":361,"box":{"x":493,"y":570,"width":453,"height":13}},{"id":"25d064b6-909d-4824-ab9d-07e697754005","block_type":"box","text":"and at least 98.2% of its capital gain net income, determined, in g","page_number":361,"box":{"x":46,"y":585,"width":456,"height":13}},{"id":"7f6a861c-b433-4b30-9ebf-aa80c878718d","block_type":"box","text":"eneral, as if the regulated investment company’s taxable year","page_number":361,"box":{"x":503,"y":585,"width":421,"height":13}},{"id":"8a300ae0-4452-4ef2-b648-40ea67292fae","block_type":"box","text":"ended on October 31, plus certain undistributed amounts from t","page_number":361,"box":{"x":46,"y":601,"width":446,"height":13}},{"id":"20facd56-9829-489b-925f-4efadd227c44","block_type":"box","text":"he preceding year. While each Fund intends to distribute its","page_number":361,"box":{"x":493,"y":601,"width":411,"height":13}},{"id":"676f2b25-96d5-4594-8cb9-90e075e9990a","block_type":"box","text":"income and capital gains in the manner necessary to minimize imposition of the 4% excise tax, there can be no assurance that","page_number":361,"box":{"x":45,"y":616,"width":873,"height":13}},{"id":"dc4ecc58-ce8b-4f05-80ef-ff9f7279eefe","block_type":"box","text":"sufficient amounts of a Fund’s taxable income and capital gains","page_number":361,"box":{"x":46,"y":632,"width":440,"height":13}},{"id":"2c873a57-bab5-476d-a431-58631f0793fc","block_type":"box","text":"will be distributed to avoid entirely the imposition of the tax. In","page_number":361,"box":{"x":491,"y":632,"width":442,"height":13}},{"id":"df8955ae-0001-442b-951e-f86424c47bd1","block_type":"box","text":"such event, a Fund will be liable for the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":361,"box":{"x":46,"y":647,"width":904,"height":13}},{"id":"bdf36e4c-1c84-4b85-a405-ebeaa6f5ffac","block_type":"box","text":"The required distributions are based only on the taxa","page_number":361,"box":{"x":45,"y":663,"width":369,"height":13}},{"id":"5db9c6eb-3a5a-46a0-9b70-37c001e156fe","block_type":"box","text":"ble income of a regulated investment company.","page_number":361,"box":{"x":415,"y":663,"width":326,"height":13}},{"id":"85eadeae-b264-4630-b6be-925f29a61984","block_type":"box","text":"General Treatment of Fund Shareholders.","page_number":361,"box":{"x":46,"y":695,"width":301,"height":13}},{"id":"16b7fb18-d363-4c89-856e-e0d2a861fce4","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net short-term capital gain over net long-term capital loss","page_number":361,"box":{"x":45,"y":722,"width":905,"height":13}},{"id":"3037ccc7-08b2-4c06-8cbf-048ba9a0d225","block_type":"box","text":"(together referred to hereafter as “ordinary income dividends”) are taxable to shareholders as ordinary income. Distributions","page_number":361,"box":{"x":46,"y":737,"width":866,"height":13}},{"id":"b1667a37-c8c3-4e18-9cd4-b46cdb8efe88","block_type":"box","text":"made from an excess of net long-term capital gain over net short-term capital loss (“capital gain dividends”) are taxable to","page_number":361,"box":{"x":45,"y":753,"width":850,"height":13}},{"id":"a4d3ca58-edd9-496c-857d-625487c7114d","block_type":"box","text":"shareholders as long-term capital gain, regardless of the length o","page_number":361,"box":{"x":46,"y":768,"width":445,"height":13}},{"id":"18bbbfef-f50f-4bcd-bcfe-3dc02b25aefd","block_type":"box","text":"f time the shareholder has owned Fund shares. Distributions paid","page_number":361,"box":{"x":492,"y":768,"width":453,"height":13}},{"id":"87bc90bb-42d9-47d6-89ba-183d3ee81924","block_type":"box","text":"by a Fund that are reported as exempt-interest dividends will not be subject to regular Federal income tax. Certain dividend","page_number":361,"box":{"x":46,"y":784,"width":857,"height":13}},{"id":"44678cd6-cbf2-4df1-9c4a-485305b528a9","block_type":"box","text":"income and long-term capital gains are eligible for taxation at a","page_number":361,"box":{"x":45,"y":799,"width":441,"height":13}},{"id":"e96787fb-6d6b-407d-a89b-340453549710","block_type":"box","text":"reduced rate that applies to non-corporate shareholders. Under","page_number":361,"box":{"x":491,"y":799,"width":437,"height":13}},{"id":"309bdab7-1c75-4996-b4c6-26054b0f5abd","block_type":"box","text":"these rules, the portion of ordinary income dividends cons","page_number":361,"box":{"x":45,"y":815,"width":402,"height":13}},{"id":"0cf3f43e-dcf4-45c3-925d-3aff25bd2e28","block_type":"box","text":"tituting “qualified dividend income” when paid by a regulated","page_number":361,"box":{"x":448,"y":815,"width":433,"height":13}},{"id":"a96942ae-3670-4a7e-b9a4-3b5b5a754fba","block_type":"box","text":"investment company to non-corporate shareholders may be taxable","page_number":361,"box":{"x":45,"y":830,"width":468,"height":13}},{"id":"cf06d6ee-542e-4fa9-99af-95a63979b4d8","block_type":"box","text":"to such shareholders at long-term capital gain rates. However,","page_number":361,"box":{"x":518,"y":830,"width":431,"height":13}},{"id":"38d18a4a-09f5-44cb-b615-757aab6286a9","block_type":"box","text":"to the extent a Fund’s distributions are derived from income on debt securities and short-term capital gains, such distributions will","page_number":361,"box":{"x":45,"y":846,"width":903,"height":13}},{"id":"1695428b-7680-4d69-baaa-b89bd8838690","block_type":"box","text":"not constitute “qualified dividend income.” Thus, ordinary income dividends paid by the Funds generally will not be eligible for","page_number":361,"box":{"x":45,"y":861,"width":888,"height":13}},{"id":"49d9e055-c40f-4857-a9a4-7f3f7ffca3dd","block_type":"box","text":"taxation at the reduced rate.","page_number":361,"box":{"x":45,"y":877,"width":195,"height":10}},{"id":"4c81dc0b-63e4-4623-8293-a809fb678e16","block_type":"box","text":"II-57","page_number":361,"box":{"x":482,"y":917,"width":35,"height":9}},{"id":"81bd123d-e7fa-44b2-b1af-696be9d3508d","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":361,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"7227afed-3315-4859-b77c-e9ff40c9e612","block_type":"box","text":"Any loss upon the sale or exchange of Fund shares held for six months or less will be treated as long-term capital loss to the extent","page_number":362,"box":{"x":45,"y":79,"width":905,"height":13}},{"id":"ac1e953d-ce9a-479a-9100-02adbe51671a","block_type":"box","text":"of any capital gain dividends received with respect to the shares. Distributions in excess of a Fund’s earnings and profits will first","page_number":362,"box":{"x":46,"y":94,"width":891,"height":13}},{"id":"3019ad82-26e3-4091-80a1-9de15a32dfae","block_type":"box","text":"reduce the shareholder’s adjusted tax basis in his shares and any amount in excess of such basis will constitute capital gains to","page_number":362,"box":{"x":45,"y":110,"width":873,"height":13}},{"id":"683577b5-70f4-44f5-a742-bf891ba6a93a","block_type":"box","text":"such shareholder (assuming the shares are held as a capital asset). Long-term capital gains (","page_number":362,"box":{"x":46,"y":125,"width":630,"height":13}},{"id":"a7311a57-a00f-407e-ac5b-56af6a908122","block_type":"box","text":"i.e.,","page_number":362,"box":{"x":678,"y":126,"width":23,"height":11}},{"id":"7dd61a54-650d-4af9-893b-4cb94d9c4b9e","block_type":"box","text":"gains from a sale or exchange of","page_number":362,"box":{"x":706,"y":125,"width":225,"height":13}},{"id":"a26804a8-ad0e-4afb-b4c2-473ac598baf3","block_type":"box","text":"capital assets held for more than one year) are generally taxed at preferential rates to non-corporate taxpayers. Each Fund will","page_number":362,"box":{"x":45,"y":141,"width":876,"height":13}},{"id":"cdfc555c-e63b-4f3d-b647-f722d7579261","block_type":"box","text":"furnish its shareholders with a written statement reporting the amounts of its dividends paid during the year that qualify as capital","page_number":362,"box":{"x":45,"y":156,"width":903,"height":13}},{"id":"a6672d54-7955-45e8-87e3-ac578bae6b93","block_type":"box","text":"gain dividends or exempt-interest dividends, as applicable, as well as the portion of an exempt-interest dividend that constitutes an","page_number":362,"box":{"x":45,"y":172,"width":905,"height":13}},{"id":"8f62726b-fea3-41e3-94cf-e22ce004b9b3","block_type":"box","text":"item of tax preference, as discussed below.","page_number":362,"box":{"x":45,"y":187,"width":294,"height":13}},{"id":"9789eafa-3592-48b8-b278-c232f14e7db9","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional shares of a Fund.","page_number":362,"box":{"x":46,"y":211,"width":895,"height":12}},{"id":"e79c0ff1-ea4f-4e08-9430-3a4b7a10f23b","block_type":"box","text":"Distributions by a Fund, whether from ordinary income or capital gains, generally will not be eligible for the dividends received","page_number":362,"box":{"x":45,"y":226,"width":884,"height":13}},{"id":"8ea633fd-32c9-43f6-bcd5-b1ff70ad2354","block_type":"box","text":"deduction allowed to corporations under the Code. If a Fund pays a dividend in January that was declared in the previous","page_number":362,"box":{"x":46,"y":242,"width":845,"height":12}},{"id":"17cd3d3d-2b12-4e58-8f25-985291f8844b","block_type":"box","text":"October, November or December to shareholders of record on a specified date in one of such months, then such dividend will be","page_number":362,"box":{"x":46,"y":257,"width":893,"height":13}},{"id":"3d2f15f1-970a-4bc5-8a00-ba00027b16ce","block_type":"box","text":"treated for tax purposes as being paid by the Fund and received by its shareholders on December 31 of the year in which such","page_number":362,"box":{"x":45,"y":273,"width":872,"height":12}},{"id":"5cfaa625-9c1d-4876-a89f-dba367da8677","block_type":"box","text":"dividend was declared.","page_number":362,"box":{"x":46,"y":288,"width":156,"height":10}},{"id":"d7908f67-e0e7-4e5a-90c4-60f166c51685","block_type":"box","text":"A shareholder in a money market fund (whether or not it has a floating NAV) may elect to adopt a simplified, aggregate","page_number":362,"box":{"x":45,"y":311,"width":835,"height":13}},{"id":"c88c8487-2370-41cc-98b5-6da55f29559f","block_type":"box","text":"accounting method under which gains and losses can be netted based on the shareholder’s taxable year rather than reported","page_number":362,"box":{"x":46,"y":327,"width":858,"height":13}},{"id":"22d9086d-e603-47fa-aad4-63d00ac99c60","block_type":"box","text":"separately. Shareholders are urged to consult their tax advisors before deciding to adopt such accounting method.","page_number":362,"box":{"x":46,"y":342,"width":786,"height":13}},{"id":"dc5971b6-a040-4240-ab58-0b582eecf54d","block_type":"box","text":"If any Fund (other than a Fund that is a government money market fund) imposes a discretionary liquidity fee on share","page_number":362,"box":{"x":45,"y":366,"width":826,"height":12}},{"id":"5a7437b9-6863-422a-b336-ceed989e69dc","block_type":"box","text":"redemptions, the amount that would ordinarily be payable to a","page_number":362,"box":{"x":45,"y":381,"width":438,"height":13}},{"id":"6b23ae55-80a8-4e05-afa9-f0c1d00cb003","block_type":"box","text":"redeeming shareholder of the Fund will be reduced, consequently","page_number":362,"box":{"x":488,"y":381,"width":452,"height":13}},{"id":"00f366fa-2492-4f34-bbdb-2dad8b333bf9","block_type":"box","text":"reducing the amount of gain, or increasing the amount of loss, that would otherwise be reportable for income tax purposes. The","page_number":362,"box":{"x":45,"y":397,"width":889,"height":12}},{"id":"cc299dfe-44ab-4f12-8019-120d59366253","block_type":"box","text":"discretionary liquidity fee cannot be separately claimed as a deduction.","page_number":362,"box":{"x":46,"y":412,"width":488,"height":13}},{"id":"79553335-af6a-40c9-aef2-07afd3fb3aa0","block_type":"box","text":"Any such discretionary liquidity fee will constitute an asset","page_number":362,"box":{"x":45,"y":435,"width":407,"height":13}},{"id":"63d67156-6492-40c3-ad06-8bf6566fd541","block_type":"box","text":"of the imposing Fund and will serve to benefit non-redeeming","page_number":362,"box":{"x":457,"y":435,"width":427,"height":13}},{"id":"02fcce7a-0839-4cb3-87fa-3e3286e31d6f","block_type":"box","text":"shareholders. If such fees were distributed to non-redeeming share","page_number":362,"box":{"x":46,"y":451,"width":457,"height":13}},{"id":"408cb407-165c-4adc-b0c2-db05314f7779","block_type":"box","text":"holders, the tax treatment would be similar to the tax treatment","page_number":362,"box":{"x":504,"y":451,"width":443,"height":12}},{"id":"cc9dcf64-0643-4b20-a3a5-7b0598f3ed9b","block_type":"box","text":"of distributions described in this section. Such fees may raise","page_number":362,"box":{"x":46,"y":466,"width":417,"height":13}},{"id":"92af792a-e96e-4bf5-a5ef-6f264bb7faea","block_type":"box","text":"the Fund’s NAV, increasing the taxable income or reducing the","page_number":362,"box":{"x":468,"y":466,"width":438,"height":13}},{"id":"560b14ea-1963-485b-977d-fcfac0f4540b","block_type":"box","text":"deductible losses of shareholders that redeem their shares at a later time when such fees are not being charged. If a Fund receives","page_number":362,"box":{"x":46,"y":482,"width":889,"height":13}},{"id":"157071ac-c644-418e-99cf-a4b82e3542fa","block_type":"box","text":"discretionary liquidity fees, it will consider the appropriate tax t","page_number":362,"box":{"x":46,"y":497,"width":441,"height":13}},{"id":"aba5f0b7-8011-4587-bfa3-0f2df6db41a6","block_type":"box","text":"reatment of such fees to the Fund at such time. However, due to a","page_number":362,"box":{"x":488,"y":497,"width":457,"height":13}},{"id":"0b914123-1e3e-4a40-91fc-177932e6573d","block_type":"box","text":"lack of guidance, the tax consequences of liquidity fees to th","page_number":362,"box":{"x":45,"y":513,"width":417,"height":13}},{"id":"77e8abd2-99f8-4b86-9926-32c2ae6442ea","block_type":"box","text":"e Fund and the shareholders is unclear and may differ from that","page_number":362,"box":{"x":462,"y":513,"width":443,"height":13}},{"id":"482c618a-e66d-4c54-a2c2-903ea3dedc5f","block_type":"box","text":"described in this section.","page_number":362,"box":{"x":46,"y":528,"width":167,"height":10}},{"id":"c26f6089-8d42-4251-baec-ab80aa7be8a8","block_type":"box","text":"Should a negative interest rate scenario ever occur that causes a government or retail money market fund to have a negative gross","page_number":362,"box":{"x":46,"y":552,"width":896,"height":12}},{"id":"e022c6aa-4848-4053-9b86-898d87746993","block_type":"box","text":"yield, the fund may account for the negative gross yield by either using a floating NAV or a reverse distribution mechanism that","page_number":362,"box":{"x":45,"y":567,"width":886,"height":13}},{"id":"1e859010-e536-49c7-af7f-75def0bc8615","block_type":"box","text":"seeks to maintain a stable NAV of the fund by cancelling shareholders’ shares in the amount of the negative gross yield. Under a","page_number":362,"box":{"x":46,"y":583,"width":888,"height":12}},{"id":"5268204c-4192-41d7-86ca-52f187ba647f","block_type":"box","text":"reverse distribution mechanism, shareholders in a fund would ob","page_number":362,"box":{"x":45,"y":598,"width":450,"height":12}},{"id":"daefa569-439d-43e1-99a9-4771bd701e1d","block_type":"box","text":"serve a stable share price but a declining number of shares for","page_number":362,"box":{"x":497,"y":598,"width":426,"height":13}},{"id":"a33383be-d970-4ee8-b0b0-0df5c0e42806","block_type":"box","text":"their investment. After a cancellation of shares, the basis of eliminated shares would be added to the basis of shareholders’","page_number":362,"box":{"x":45,"y":614,"width":846,"height":12}},{"id":"1e44ea83-9afc-4608-bfd7-e06689055753","block_type":"box","text":"remaining fund shares, and any shareholders disposing of shares","page_number":362,"box":{"x":45,"y":629,"width":446,"height":13}},{"id":"cc0c6ba7-b3db-44ba-b8a4-9ae828635bee","block_type":"box","text":"at that time may recognize a capital loss. Dividends, including","page_number":362,"box":{"x":496,"y":629,"width":429,"height":13}},{"id":"2a888317-8f89-4d62-9e6f-d31d0998800a","block_type":"box","text":"dividends reinvested in additional shares of a fund, will nonetheless be fully taxable, even if the number of shares in shareholders’","page_number":362,"box":{"x":46,"y":645,"width":895,"height":12}},{"id":"98c0cc0b-9d0b-47b8-9d57-7e9763fd911b","block_type":"box","text":"accounts has been reduced as described above. However, due to a lack of guidance regarding the cancellation of shares, the tax","page_number":362,"box":{"x":46,"y":660,"width":880,"height":13}},{"id":"efdce2b7-8824-463d-8358-ca1cbb0d60a8","block_type":"box","text":"consequences of such cancellation of shares to the Fund and the shareholders is unclear and may differ from that described in this","page_number":362,"box":{"x":45,"y":676,"width":898,"height":12}},{"id":"ba213ef9-0acb-46e7-8fc8-8921976286fb","block_type":"box","text":"section.","page_number":362,"box":{"x":46,"y":692,"width":51,"height":9}},{"id":"4d0734c3-3cc8-45c4-ad75-e3aa4fbc6be7","block_type":"box","text":"Under certain provisions of the Code, some shareholders may b","page_number":362,"box":{"x":45,"y":714,"width":441,"height":13}},{"id":"4b2fec29-5f90-43d5-8007-112824e2a6dd","block_type":"box","text":"e subject to a 24% withholding tax on ordinary income dividends","page_number":362,"box":{"x":487,"y":714,"width":456,"height":13}},{"id":"c2133fac-bdb3-4c4d-8171-9cbb0e1975e5","block_type":"box","text":"and capital gain dividends (“backup withholding”). Generally, s","page_number":362,"box":{"x":46,"y":730,"width":444,"height":13}},{"id":"15a52aaf-6f58-42da-8a3c-34c9c06eeb48","block_type":"box","text":"hareholders subject to backup withholding will be non-corporate","page_number":362,"box":{"x":491,"y":730,"width":451,"height":13}},{"id":"2ed11c4d-f71d-4392-bd63-cdd971e5a674","block_type":"box","text":"shareholders for whom no certified taxpayer identification number is on file with a Fund or who, to a Fund’s knowledge, have","page_number":362,"box":{"x":46,"y":745,"width":877,"height":13}},{"id":"00829fd8-3592-4c35-92c0-c767a6aa3cc1","block_type":"box","text":"furnished an incorrect number. When establishing an account, an investor must certify under penalty of perjury that such number","page_number":362,"box":{"x":45,"y":761,"width":900,"height":13}},{"id":"c1d720a3-734e-4a1b-b33c-089185c3339e","block_type":"box","text":"is correct and that the investor is not otherwise subject to backup withholding. Backup withholding is not an additional tax. Any","page_number":362,"box":{"x":45,"y":776,"width":895,"height":13}},{"id":"5337629b-7c72-491b-ac35-6738d579bf4d","block_type":"box","text":"amount withheld generally may be allowed as a refund or a credit against a shareholder’s Federal income tax liability provided","page_number":362,"box":{"x":46,"y":792,"width":878,"height":13}},{"id":"42861097-e423-438d-ac3b-2d206d254b56","block_type":"box","text":"that the required information is timely provided to the IRS.","page_number":362,"box":{"x":45,"y":807,"width":410,"height":13}},{"id":"db61a3ad-aae2-4852-8c0b-ee4d9959797f","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 year or $4 million in","page_number":362,"box":{"x":45,"y":830,"width":887,"height":14}},{"id":"3041a17f-3e9e-463b-9214-d10e5f9d0c12","block_type":"box","text":"any combination of taxable years for an individual shareholder or $10 million in any single taxable year or $20 million in any","page_number":362,"box":{"x":46,"y":846,"width":874,"height":13}},{"id":"6f187774-b528-45bf-9487-ab47f64ad761","block_type":"box","text":"combination of taxable years for a corporate shareholder in any single taxable year, the shareholder must file a disclosure","page_number":362,"box":{"x":45,"y":862,"width":843,"height":13}},{"id":"44dc33b2-0b9d-4152-81e7-319477dac473","block_type":"box","text":"statement on Form 8886 with the IRS. Direct shareholders of por","page_number":362,"box":{"x":46,"y":877,"width":454,"height":13}},{"id":"a607671f-3bc9-4488-af2c-147c93992e68","block_type":"box","text":"tfolio securities are in many cases exempted from this reporting","page_number":362,"box":{"x":500,"y":877,"width":439,"height":13}},{"id":"ecc9a45c-9652-4263-ae52-202faf4de970","block_type":"box","text":"II-58","page_number":362,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"ea36c693-2ea0-4594-9e72-2660b3dbe130","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":362,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"85722526-03b1-42ca-8538-c536c7e8f6e9","block_type":"box","text":"requirement, but under current guidance, shareholders of a reg","page_number":363,"box":{"x":45,"y":79,"width":435,"height":13}},{"id":"82be9b29-2fb3-42b2-84cf-8259a798e6a8","block_type":"box","text":"ulated investment company are not exempted. That a loss is","page_number":363,"box":{"x":481,"y":79,"width":415,"height":13}},{"id":"937df222-53a4-41d9-8a1f-514d8750d53e","block_type":"box","text":"reportable under these regulations does not affect the legal determination of whether the taxpayer’s treatment of the loss is proper.","page_number":363,"box":{"x":45,"y":94,"width":904,"height":13}},{"id":"ed621818-cdf0-48a9-8a54-100660975c84","block_type":"box","text":"Shareholders should consult their tax advisors to determine the applicability of these regulations in light of their individual","page_number":363,"box":{"x":46,"y":110,"width":848,"height":13}},{"id":"eaacf2c5-9e49-4094-b9e3-cc4d90ef6c77","block_type":"box","text":"circumstances.","page_number":363,"box":{"x":45,"y":126,"width":100,"height":9}},{"id":"256ea8f8-0eea-4f83-b295-bca8fdb90e0c","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (wh","page_number":363,"box":{"x":45,"y":149,"width":469,"height":12}},{"id":"63e529e3-ac40-4a64-a270-727a75bc295a","block_type":"box","text":"ich includes, but is not limited to, interest, dividends and net","page_number":363,"box":{"x":515,"y":149,"width":417,"height":12}},{"id":"214c25f0-3a38-4b09-bf59-22d221c55518","block_type":"box","text":"gains from investments) of U.S. individuals with income ex","page_number":363,"box":{"x":45,"y":164,"width":409,"height":13}},{"id":"e75f9fb2-60b2-47ca-a2d9-1997afa597ea","block_type":"box","text":"ceeding $200,000, or $250,000 if married filing jointly, and of trusts","page_number":363,"box":{"x":454,"y":164,"width":477,"height":13}},{"id":"5ea7b3c5-7ee4-41c3-8f8c-ebb833b9411e","block_type":"box","text":"and estates. 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A shareholder’s tax basis in","page_number":363,"box":{"x":45,"y":218,"width":898,"height":13}},{"id":"2bf20bc5-7627-4dbe-9147-145423fc8ef3","block_type":"box","text":"the Investor A Shares acquired upon conversion will be the same as the shareholder’s tax basis in the converted Investor C Shares","page_number":363,"box":{"x":45,"y":234,"width":896,"height":13}},{"id":"9d64b27a-00b0-4a45-bc72-ed4d51a8e399","block_type":"box","text":"and the holding period of the acquired Investor A Shares will in","page_number":363,"box":{"x":46,"y":249,"width":440,"height":13}},{"id":"2c2f62c2-b726-4a40-88e7-0418d572c738","block_type":"box","text":"clude the holding period for the converted Investor C Shares.","page_number":363,"box":{"x":487,"y":249,"width":421,"height":13}},{"id":"161485d4-6116-4ac0-9ee6-90e93015e4f3","block_type":"box","text":"Interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. 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Div","page_number":363,"box":{"x":45,"y":358,"width":456,"height":13}},{"id":"62abe04c-e8e1-47ab-a96a-8449be4e0d7a","block_type":"box","text":"idends derived by a regulated investment company from short","page_number":363,"box":{"x":501,"y":358,"width":434,"height":13}},{"id":"a416277f-2e82-4495-b42e-f06e8d002c47","block_type":"box","text":"term capital gains and qualified net interest income (including inco","page_number":363,"box":{"x":45,"y":373,"width":462,"height":13}},{"id":"0be52703-3b29-4260-9428-676bcec58ebe","block_type":"box","text":"me from original issue discount and market discount) and paid","page_number":363,"box":{"x":508,"y":373,"width":436,"height":13}},{"id":"c79b1f1c-e139-413d-881c-0ca944c4376b","block_type":"box","text":"to stockholders that are nonresident aliens and foreign entities, if and to the extent properly reported as “interest-related","page_number":363,"box":{"x":45,"y":389,"width":834,"height":13}},{"id":"f96e86ed-3cbf-4684-8bbb-ab4a78b1d2e4","block_type":"box","text":"dividends” or “short-term capital gain dividends,” generally will not be subject to U.S. withholding tax. 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Therefore, the Fund may use the Active Fund Proxy Voting Policy while an underlying fund may use the","page_number":364,"box":{"x":46,"y":110,"width":885,"height":13}},{"id":"992d39be-2a8d-4fca-a8df-a90aabe8f107","block_type":"box","text":"Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":364,"box":{"x":45,"y":125,"width":481,"height":13}},{"id":"61a935ad-bbfd-4e03-90ce-ccc31eac478f","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy and the BAIS Guidelines are attached as Appendix B to this SAI. 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The Declaration of Trust also provides that a","page_number":364,"box":{"x":45,"y":647,"width":887,"height":13}},{"id":"aedc54bd-a906-4b10-a1fd-a0a351b778a7","block_type":"box","text":"trust may maintain appropriate insurance (for example, fide","page_number":364,"box":{"x":45,"y":663,"width":416,"height":13}},{"id":"6a22c0ad-9034-40fa-90db-9a48be4056ae","block_type":"box","text":"lity bond and errors and omissions insurance) for the protection of the","page_number":364,"box":{"x":462,"y":663,"width":488,"height":13}},{"id":"4d7f1197-be85-450a-b1b7-ef0dc1134a26","block_type":"box","text":"trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities. 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While NRSROs may from time to time revise such ratings, they","page_number":365,"box":{"x":501,"y":146,"width":449,"height":13}},{"id":"f167b2eb-ba68-42c4-b39c-b75ec05f0e8a","block_type":"box","text":"undertake no obligation to do so, and the ratings given to secu","page_number":365,"box":{"x":46,"y":162,"width":433,"height":13}},{"id":"0a3183c0-89d2-46f2-bf87-2212f927ca84","block_type":"box","text":"rities at issuance do not necessarily represent ratings which would","page_number":365,"box":{"x":479,"y":162,"width":456,"height":13}},{"id":"0cff6921-73b1-4457-8b6c-46b7afcc28ca","block_type":"box","text":"be given to these securities on a particular subsequent date.","page_number":365,"box":{"x":46,"y":177,"width":408,"height":13}},{"id":"cb85e935-2e9f-4b02-9128-157f8ec55ed1","block_type":"box","text":"NRSROs may rate specific investments (e.g., bonds), issuers (e.g","page_number":365,"box":{"x":45,"y":201,"width":445,"height":13}},{"id":"013f8451-d96f-4d3a-8a9d-fba3c88a50d7","block_type":"box","text":"., corporations, governments and financial institutions) and/or","page_number":365,"box":{"x":491,"y":201,"width":430,"height":13}},{"id":"42a61059-ee99-4727-9729-5f6fe1f527c5","block_type":"box","text":"programs (e.g., commercial paper programs). However, certain t","page_number":365,"box":{"x":45,"y":216,"width":448,"height":13}},{"id":"f50aa9aa-59de-4844-a6de-10415cd36492","block_type":"box","text":"ypes of investments may not be rated by NRSROs, such as certain","page_number":365,"box":{"x":494,"y":216,"width":459,"height":13}},{"id":"fdfd1c90-b1d9-4909-a2b0-bf2a76683dc3","block_type":"box","text":"government/sovereign obligations, US agency securities, commerci","page_number":365,"box":{"x":45,"y":232,"width":459,"height":13}},{"id":"197e3432-765b-4c8a-bbbd-4f0cc5bc2c29","block_type":"box","text":"al paper, time deposits at financial institutions, and derivative","page_number":365,"box":{"x":505,"y":232,"width":426,"height":13}},{"id":"5bb85a54-6513-436c-91a4-35014a0ec9eb","block_type":"box","text":"instruments such as credit default swaps. For these types of investments, as well as US Treasury securities (some of which are not","page_number":365,"box":{"x":45,"y":247,"width":893,"height":13}},{"id":"1f512a33-2bb2-4090-8a45-639037bd17bd","block_type":"box","text":"rated), where a NRSRO has not rated the specific investment but has rated the investment’s issuer, program, financial institution","page_number":365,"box":{"x":45,"y":263,"width":892,"height":13}},{"id":"1f85e87b-dfd7-4a2a-9daa-2972ec3c2430","block_type":"box","text":"or underlying reference asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”)","page_number":365,"box":{"x":46,"y":278,"width":876,"height":13}},{"id":"4192bfe2-20d7-4833-aa5d-756004e59b4a","block_type":"box","text":"may consider the investment to have the same NRSRO rating as its","page_number":365,"box":{"x":45,"y":294,"width":466,"height":13}},{"id":"dd14a138-c36c-4d72-9f2b-6219604bb6ea","block_type":"box","text":"issuer, program, financial institution or underlying reference","page_number":365,"box":{"x":516,"y":294,"width":417,"height":13}},{"id":"79f335b8-7f96-462c-8781-2b2b18d9bd94","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where","page_number":365,"box":{"x":46,"y":309,"width":422,"height":13}},{"id":"b9b33a8f-e99b-4686-bda0-a0be21930947","block_type":"box","text":"one NRSRO provides multiple ratings for the same security (e.g.,","page_number":365,"box":{"x":474,"y":309,"width":450,"height":13}},{"id":"be3426e8-67e9-4987-8935-5f2105fdfb17","block_type":"box","text":"“underlying,” “insured” and/or “enhanced” ratings), BlackRoc","page_number":365,"box":{"x":47,"y":325,"width":438,"height":13}},{"id":"b2475382-09fd-4376-a286-edfaca88e074","block_type":"box","text":"k may consider the security to have the highest of the multiple","page_number":365,"box":{"x":486,"y":325,"width":430,"height":13}},{"id":"d39e5446-ce7b-481f-8a31-e86d840047ba","block_type":"box","text":"ratings.","page_number":365,"box":{"x":45,"y":341,"width":51,"height":12}},{"id":"d5b30934-80af-4b5b-81d4-8cac9cbff741","block_type":"box","text":"New issue securities (regardless of type) may not be rated by a NRSRO at the time of their initial offering. 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If applicable, when deciding whether to purchase a","page_number":365,"box":{"x":46,"y":395,"width":880,"height":13}},{"id":"529db6ca-6074-4c8f-b5b5-8c6c9acadd66","block_type":"box","text":"new issue security that has not yet been rated by a NRSRO, BlackRock may attribute an expected rating to the security based on:","page_number":365,"box":{"x":45,"y":410,"width":898,"height":13}},{"id":"2e99ef75-6f70-47bf-b44b-02fbee47f036","block_type":"box","text":"(i) the expected rating of the security set forth in the preliminary p","page_number":365,"box":{"x":46,"y":426,"width":457,"height":13}},{"id":"2490e86e-1ffd-4555-9ae4-72924b4d7830","block_type":"box","text":"rospectus or term sheet for the security; (ii) the NRSRO’s rating","page_number":365,"box":{"x":504,"y":426,"width":442,"height":13}},{"id":"eeda351d-d417-4764-8678-0957a4789ab1","block_type":"box","text":"for the issuer of the security set forth in the preliminary pro","page_number":365,"box":{"x":45,"y":441,"width":412,"height":13}},{"id":"7b3685f3-e3c0-4f95-a652-e8f05e0fd864","block_type":"box","text":"spectus or term sheet for the security; or (iii) with respect to asset","page_number":365,"box":{"x":458,"y":441,"width":455,"height":13}},{"id":"12642e4f-8413-4e0b-ad7a-4956f1026933","block_type":"box","text":"backed securities, the rating of a prior issuance","page_number":365,"box":{"x":46,"y":457,"width":323,"height":13}},{"id":"263e4a6d-a556-4610-98af-1e46bbe146e4","block_type":"box","text":"having a similar structure or the same sponsor.","page_number":365,"box":{"x":374,"y":457,"width":324,"height":13}},{"id":"0029bf83-73d4-439a-912e-af42f3e1eb8f","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit ratings eligibility criteria as","page_number":365,"box":{"x":45,"y":480,"width":888,"height":13}},{"id":"c3bac27b-29bd-46c8-97e8-a965aa0f651d","block_type":"box","text":"part of its index methodology, the fund may purchase any security within the index, such security having been determined by the","page_number":365,"box":{"x":45,"y":496,"width":895,"height":13}},{"id":"3f2229a6-d698-42c0-8d19-9af3a188431c","block_type":"box","text":"index provider as meeting its credit ratings eligibility criteria. The credit ratings practices of an index provider may differ from","page_number":365,"box":{"x":45,"y":511,"width":874,"height":13}},{"id":"d30834c4-f618-4b6c-9f49-828f125769a5","block_type":"box","text":"BlackRock’s practices, as described above. Further, the fund may invest, directly or indirectly, in securities that are not rated by a","page_number":365,"box":{"x":46,"y":527,"width":894,"height":13}},{"id":"d19de06e-a011-4c68-8f9a-3dc3172762ec","block_type":"box","text":"rating agency or securities with a credit rating that differs from the credit rating specified in its index methodology in various","page_number":365,"box":{"x":45,"y":542,"width":865,"height":13}},{"id":"11058ee9-9641-4a3e-bff9-c930a1e8bd1e","block_type":"box","text":"circumstances, including where a security is downgraded but not yet removed from an index, following the removal of a security","page_number":365,"box":{"x":45,"y":558,"width":892,"height":13}},{"id":"efdd97f2-5f50-49ba-97e7-061f8759844e","block_type":"box","text":"from an index prior to its sale by the fund or as a result of a corporate action or restructuring affecting an issuer of a security held","page_number":365,"box":{"x":45,"y":573,"width":900,"height":13}},{"id":"6a0c1d96-1dce-4ef4-8426-9459c35b75b8","block_type":"box","text":"by the fund.","page_number":365,"box":{"x":46,"y":589,"width":82,"height":13}},{"id":"827bcdce-3004-4aeb-b1bd-179062682f44","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay interest or repay","page_number":365,"box":{"x":45,"y":612,"width":854,"height":13}},{"id":"dff02d88-f5d6-4340-ae06-3c8089c79243","block_type":"box","text":"principal which are similar to the risks of lower-rated speculative bonds. Evaluation of these securities is dependent on","page_number":365,"box":{"x":45,"y":628,"width":820,"height":12}},{"id":"d6f89ca5-71f1-4e4b-883a-9183320f253a","block_type":"box","text":"BlackRock’s judgment, analysis and experience in the evaluation of such securities.","page_number":365,"box":{"x":46,"y":643,"width":573,"height":13}},{"id":"3bb024be-0237-4639-97ac-a0b76467bdda","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 recent developments","page_number":365,"box":{"x":45,"y":667,"width":900,"height":12}},{"id":"a3483ccc-1564-4a90-a171-f1f3dbce3533","block_type":"box","text":"on the issuer’s ability to make interest and principal payments or on the likelihood of default.","page_number":365,"box":{"x":46,"y":682,"width":645,"height":13}},{"id":"c2adc35b-eeac-4364-b84c-db7b35ee1e9f","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 Fitch.","page_number":365,"box":{"x":46,"y":706,"width":831,"height":12}},{"id":"1541083f-ec92-43fb-b8e4-2b424991bd8f","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":365,"box":{"x":45,"y":729,"width":626,"height":13}},{"id":"2524f8c0-aec3-4ae9-9c99-d6e5a501cf02","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":365,"box":{"x":45,"y":758,"width":618,"height":13}},{"id":"8b76ca2d-7cb0-4749-bdd9-356d3a14a1be","block_type":"box","text":"Ratings assigned on Moody’s global long-term and short-term rating scales are forward-looking opinions of the relative credit","page_number":365,"box":{"x":46,"y":784,"width":874,"height":13}},{"id":"8b852716-709d-4efe-b239-52d2047221fb","block_type":"box","text":"risks of financial obligations issued by non-financial corporates,","page_number":365,"box":{"x":45,"y":799,"width":442,"height":13}},{"id":"71659b6c-9cd7-427a-9b11-ff0eeb5723bb","block_type":"box","text":"financial institutions, structured finance vehicles, project finance","page_number":365,"box":{"x":493,"y":799,"width":444,"height":13}},{"id":"58fa10f7-2879-42bf-b72a-c02b60ec064b","block_type":"box","text":"vehicles, and public sector entities. Moody’s defines credit risk as th","page_number":365,"box":{"x":45,"y":815,"width":469,"height":13}},{"id":"93d96221-b660-474a-ad55-9035360749f5","block_type":"box","text":"e risk that an entity may not meet its contractual financial","page_number":365,"box":{"x":515,"y":815,"width":400,"height":13}},{"id":"9873ee89-0b76-496f-9f6b-7c6c62fad066","block_type":"box","text":"obligations as they come due and any estimated financial loss in th","page_number":365,"box":{"x":46,"y":830,"width":461,"height":13}},{"id":"4750fae3-f77f-41b3-b70b-8882a1e7f2a0","block_type":"box","text":"e event of default or impairment. The contractual financial","page_number":365,"box":{"x":507,"y":830,"width":407,"height":13}},{"id":"bc64722f-5356-43d0-bf8e-534b230e95c0","block_type":"box","text":"obligations addressed by Moody’s ratings are those that call for, without regard to enforceability, the payment of an ascertainable","page_number":365,"box":{"x":46,"y":846,"width":900,"height":13}},{"id":"395610f3-3367-4fa0-bc80-8e21544f2e92","block_type":"box","text":"amount, which may vary based upon standard sources of variation (e.g., floating interest rates), by an ascertainable date. Moody’s","page_number":365,"box":{"x":46,"y":861,"width":904,"height":13}},{"id":"71bcfb95-9234-4e59-ab2b-5929df685d06","block_type":"box","text":"rating addresses the issuer’s ability to obtain cash sufficient to serv","page_number":365,"box":{"x":45,"y":877,"width":460,"height":13}},{"id":"b1718996-5095-4622-9c79-c8f39de36f41","block_type":"box","text":"ice the obligation, and its willingness to pay. Moody’s ratings do","page_number":365,"box":{"x":505,"y":877,"width":448,"height":13}},{"id":"56d441e7-0a12-4548-b6f6-61b9d8818437","block_type":"box","text":"A-1","page_number":365,"box":{"x":486,"y":916,"width":25,"height":10}},{"id":"ef62a1c0-c471-4df7-8be9-73c8c593bf42","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":365,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9ab115cf-971f-4505-b6a6-8bef643b2e03","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (e.g., equity indexed), absent an express","page_number":366,"box":{"x":45,"y":79,"width":886,"height":13}},{"id":"7aaa2b3c-001f-4ba3-bba8-5180da428731","block_type":"box","text":"statement to the contrary in a press release accompanying an initia","page_number":366,"box":{"x":46,"y":94,"width":460,"height":13}},{"id":"d6f4bd66-d685-4314-a0fe-3cc32f52c6f2","block_type":"box","text":"l rating. Long-term ratings are assigned to issuers or obligations","page_number":366,"box":{"x":507,"y":94,"width":441,"height":13}},{"id":"ede53c4f-5ea8-4d53-ae23-7602fee4e605","block_type":"box","text":"with an original maturity of one year or more and reflect both on the likelihood of a default or impairment on contractual","page_number":366,"box":{"x":45,"y":110,"width":848,"height":13}},{"id":"35ea8829-ed0b-4e4c-8801-204407994ed6","block_type":"box","text":"financial obligations and the expected financial loss suffered in th","page_number":366,"box":{"x":45,"y":125,"width":453,"height":13}},{"id":"046f68fa-0539-4aec-ad8f-0cd425684d19","block_type":"box","text":"e event of default or impairment. Short-term ratings are assigned","page_number":366,"box":{"x":499,"y":125,"width":448,"height":13}},{"id":"9813cfd9-93b0-42e8-9c08-daa5f10c86b5","block_type":"box","text":"for obligations with an original maturity of thirteen months or less and reflect both on the likelihood of a default or impairment","page_number":366,"box":{"x":45,"y":141,"width":887,"height":13}},{"id":"275d0940-adac-4673-a942-05411b47493d","block_type":"box","text":"on contractual financial obligations and the expected financial","page_number":366,"box":{"x":46,"y":156,"width":431,"height":13}},{"id":"92ff58ed-f719-4ed4-90a3-4862d7662e6a","block_type":"box","text":"loss suffered in the event of default or impairment. Moody’s issues","page_number":366,"box":{"x":482,"y":156,"width":460,"height":13}},{"id":"42ddd775-4578-49bb-a83a-35f9a985ebc6","block_type":"box","text":"ratings at the issuer level and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made","page_number":366,"box":{"x":45,"y":172,"width":879,"height":13}},{"id":"98791c7b-d56b-4124-9cb7-0457dd6a2aa0","block_type":"box","text":"publicly available although private and unpublished ratings may also be assigned.","page_number":366,"box":{"x":45,"y":187,"width":565,"height":13}},{"id":"6f2bf126-84ff-4231-a284-fc64161cd424","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundament","page_number":366,"box":{"x":45,"y":211,"width":456,"height":12}},{"id":"ade2024f-d838-43d0-b355-6dd9f867826d","block_type":"box","text":"al ratings (i.e., ratings on nonfinancial corporate, financial","page_number":366,"box":{"x":502,"y":211,"width":403,"height":12}},{"id":"9adf4609-e0aa-4318-89d0-223f60cef0b7","block_type":"box","text":"institution, and public sector entities) on the global long-term scale by","page_number":366,"box":{"x":45,"y":226,"width":484,"height":13}},{"id":"23c7e984-b194-4e21-b676-cb3c5c02ff93","block_type":"box","text":"adding (sf) to all structured finance ratings. The addition of","page_number":366,"box":{"x":534,"y":226,"width":413,"height":13}},{"id":"ff41c032-e804-463a-9aeb-f73220a1f8bf","block_type":"box","text":"(sf) to structured finance ratings should eliminate any presumptio","page_number":366,"box":{"x":46,"y":242,"width":452,"height":12}},{"id":"43da112f-0e5b-426c-8c46-07199600457e","block_type":"box","text":"n that such ratings and fundamental ratings at the same letter","page_number":366,"box":{"x":499,"y":242,"width":426,"height":12}},{"id":"915ebba8-351e-43b4-b158-555e9db96c44","block_type":"box","text":"grade level will behave the same. The (sf) indicator for structured","page_number":366,"box":{"x":45,"y":257,"width":452,"height":13}},{"id":"f63ab066-e904-4c8c-b385-2c7d9e7271d5","block_type":"box","text":"finance security ratings indicates that otherwise similarly rated","page_number":366,"box":{"x":502,"y":257,"width":432,"height":13}},{"id":"1319018c-a3c1-4de5-8d95-f0512470df99","block_type":"box","text":"structured finance and fundamental securities may have different risk characteristics. Through its current methodologies, however,","page_number":366,"box":{"x":46,"y":273,"width":904,"height":12}},{"id":"1b7fae0f-39ab-448a-9d3d-62872fcd04f9","block_type":"box","text":"Moody’s aspires to achieve broad expected equivalence in structured finance and fundamental rating performance when measured","page_number":366,"box":{"x":45,"y":288,"width":905,"height":13}},{"id":"4743868a-fc34-4e4d-a161-e2a45c264f6f","block_type":"box","text":"over a long period of time.","page_number":366,"box":{"x":46,"y":304,"width":183,"height":12}},{"id":"269982fe-2110-4ff6-8549-9834487fb840","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":366,"box":{"x":45,"y":332,"width":410,"height":13}},{"id":"79359737-d7f1-4b82-8dc3-a76faa90fd4b","block_type":"box","text":"Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk.","page_number":366,"box":{"x":45,"y":357,"width":890,"height":12}},{"id":"72b7ab77-369b-4bba-a502-0567d615e296","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":366,"box":{"x":45,"y":376,"width":820,"height":13}},{"id":"5d8e5b86-5db6-464f-86b8-aec2165c0e5c","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":366,"box":{"x":45,"y":395,"width":821,"height":13}},{"id":"0392c26c-c2bc-40fd-8115-4abf73bf1b31","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such","page_number":366,"box":{"x":46,"y":415,"width":887,"height":12}},{"id":"8fd59118-d078-4dd0-a235-8277812311d2","block_type":"box","text":"may possess certain speculative characteristics.","page_number":366,"box":{"x":197,"y":429,"width":337,"height":13}},{"id":"3ada6338-cc52-4bfc-9f7c-da0987c4bd12","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":366,"box":{"x":46,"y":448,"width":806,"height":13}},{"id":"5e90932e-51f2-4d28-a96d-052a848b555e","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":366,"box":{"x":46,"y":468,"width":739,"height":12}},{"id":"aa73be5d-32fa-4b79-83f5-3c98211e3498","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit","page_number":366,"box":{"x":46,"y":487,"width":895,"height":13}},{"id":"b6b29bfb-19cf-40fa-8178-a6d413b7f864","block_type":"box","text":"risk.","page_number":366,"box":{"x":197,"y":501,"width":30,"height":10}},{"id":"d04b9699-537c-4272-a6dd-e3af132ee687","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect","page_number":366,"box":{"x":46,"y":521,"width":894,"height":12}},{"id":"b67a0a7b-aa7a-4af1-8754-3809db776c41","block_type":"box","text":"of recovery of principal and interest.","page_number":366,"box":{"x":197,"y":535,"width":263,"height":13}},{"id":"b5f66123-6e8b-4567-8b6c-b9b4bb4d515b","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of","page_number":366,"box":{"x":46,"y":554,"width":902,"height":13}},{"id":"39439a75-fae4-41d3-bfd2-e654b742a2c9","block_type":"box","text":"principal or interest.","page_number":366,"box":{"x":197,"y":568,"width":146,"height":13}},{"id":"9c0ea695-3735-4780-823a-e5d0d874e97c","block_type":"box","text":"Note","page_number":366,"box":{"x":45,"y":593,"width":35,"height":9}},{"id":"113b2441-e392-496c-8028-291a6fca64f3","block_type":"box","text":": Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1","page_number":366,"box":{"x":81,"y":592,"width":868,"height":12}},{"id":"0027534a-57aa-41de-a1a4-49d6ecc34358","block_type":"box","text":"indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking;","page_number":366,"box":{"x":45,"y":607,"width":881,"height":13}},{"id":"7e88f287-5027-4882-9991-9f1f58f30856","block_type":"box","text":"and the modifier 3 indicates a ranking in the lower end of that generic rating category. Additionally, a “(hyb)” indicator is","page_number":366,"box":{"x":46,"y":623,"width":847,"height":13}},{"id":"a997ed40-57d2-4f75-b9c5-cbaf73a172f1","block_type":"box","text":"appended to all ratings of hybrid securities issued by banks, insurers, finance companies, and securities firms.","page_number":366,"box":{"x":46,"y":638,"width":754,"height":13}},{"id":"fdfed6b3-f3df-4d21-a34a-ff0a19383db5","block_type":"box","text":"By their terms, hybrid securities allow for the omission of sche","page_number":366,"box":{"x":46,"y":661,"width":431,"height":13}},{"id":"357882b1-4f73-4901-a6d8-50de4c84f626","block_type":"box","text":"duled dividends, interest, or principal payments, which can","page_number":366,"box":{"x":478,"y":661,"width":408,"height":13}},{"id":"d71262a7-0a0e-4f94-bb76-b10efee6b3b1","block_type":"box","text":"potentially result in impairment if such an omission occurs. Hybrid","page_number":366,"box":{"x":45,"y":677,"width":465,"height":13}},{"id":"40f16afa-0c0a-4835-87ca-72c83bbcb33f","block_type":"box","text":"securities may also be subject to contractually allowable write","page_number":366,"box":{"x":516,"y":677,"width":433,"height":13}},{"id":"20b230eb-fd29-49fe-8acf-b0e418927556","block_type":"box","text":"downs of principal that could result in impairment. Together with","page_number":366,"box":{"x":46,"y":692,"width":458,"height":13}},{"id":"209a7ffe-1165-413a-88e8-830d4511d4a2","block_type":"box","text":"the hybrid indicator, the long-term obligation rating assigned to","page_number":366,"box":{"x":508,"y":692,"width":443,"height":13}},{"id":"a8ade3f2-6cf6-4858-b9ce-0f540868e85e","block_type":"box","text":"a hybrid security is an expression of the relative credit risk associated with that security.","page_number":366,"box":{"x":46,"y":708,"width":607,"height":13}},{"id":"df507c9a-cfb6-44b3-b28b-fd092d03fa89","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":366,"box":{"x":45,"y":736,"width":412,"height":13}},{"id":"62569850-4fcb-49d7-ab65-d1821e0f1b4c","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":366,"box":{"x":45,"y":761,"width":701,"height":13}},{"id":"09ee5f96-4587-4086-839c-ac28f1b2a6e4","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":366,"box":{"x":45,"y":780,"width":687,"height":13}},{"id":"80f5e499-c809-4a1c-98e2-b4c778efa923","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":366,"box":{"x":45,"y":800,"width":726,"height":13}},{"id":"a69ffa77-b7bc-46e6-906e-386ad8388ed5","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":366,"box":{"x":45,"y":819,"width":829,"height":13}},{"id":"98cdf725-0a6c-47a6-ac26-fdd20ea8a52f","block_type":"box","text":"categories.","page_number":366,"box":{"x":197,"y":834,"width":75,"height":12}},{"id":"5b6af85a-afbb-4e1e-8dfe-479984acfa86","block_type":"box","text":"A-2","page_number":366,"box":{"x":486,"y":916,"width":26,"height":10}},{"id":"01d3d3b3-26eb-4ba7-9d00-a94a03b13c37","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":366,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1a25b67c-ca8e-4d93-9c69-99860169cee0","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":367,"box":{"x":45,"y":79,"width":660,"height":13}},{"id":"727921de-3b0b-4b22-a244-c683205305da","block_type":"box","text":"Description of Moody’s Short-Term Obligation Ratings","page_number":367,"box":{"x":45,"y":103,"width":406,"height":13}},{"id":"d5a46729-116c-4da4-adc8-8c02b14dc171","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S. municipalities and nonprofits. These","page_number":367,"box":{"x":45,"y":125,"width":886,"height":13}},{"id":"53afd9ba-d8b2-472d-bc9c-a1c042f5c7ae","block_type":"box","text":"commercial paper programs may be backed by external letters of","page_number":367,"box":{"x":45,"y":141,"width":452,"height":13}},{"id":"2574403d-d618-4521-b40c-3747acb8497b","block_type":"box","text":"credit or liquidity facilities, or by an issuer’s self-liquidity.","page_number":367,"box":{"x":501,"y":141,"width":397,"height":13}},{"id":"26638e66-bd77-4a81-9b8f-24146514be4c","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one","page_number":367,"box":{"x":45,"y":163,"width":431,"height":13}},{"id":"de4e9e73-aa29-46a0-8dd1-6777a2af7f49","block_type":"box","text":"of two other short-term rating scales, the Municipal Investment","page_number":367,"box":{"x":481,"y":163,"width":440,"height":13}},{"id":"b04977ba-195a-4550-a544-b924aaf983b9","block_type":"box","text":"Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":367,"box":{"x":46,"y":179,"width":650,"height":12}},{"id":"229a236b-479d-4b85-800a-ad3a7c22af7b","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain other short-term obligations,","page_number":367,"box":{"x":45,"y":201,"width":900,"height":12}},{"id":"b448f63b-8321-4ab4-a2cc-838ce85c6348","block_type":"box","text":"which typically mature in three years or less. Under certain ci","page_number":367,"box":{"x":45,"y":216,"width":424,"height":13}},{"id":"38be4334-b6cf-4baa-bdba-bc9ea41463af","block_type":"box","text":"rcumstances, Moody’s uses the MIG scale for bond anticipation","page_number":367,"box":{"x":469,"y":216,"width":444,"height":13}},{"id":"8750bc3c-2df8-4f5a-a609-3ecf986f323b","block_type":"box","text":"notes with maturities of up to five years.","page_number":367,"box":{"x":45,"y":232,"width":279,"height":12}},{"id":"03fe8f01-2ed4-482b-baef-c028d5f26ba1","block_type":"box","text":"MIG Scale","page_number":367,"box":{"x":45,"y":261,"width":73,"height":10}},{"id":"37e1d40b-c11d-4b51-bece-e17b3875c8ec","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established cash","page_number":367,"box":{"x":45,"y":284,"width":878,"height":12}},{"id":"78b22357-5c5a-470c-9daa-3ea791cbd8a4","block_type":"box","text":"flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":367,"box":{"x":197,"y":298,"width":679,"height":13}},{"id":"017260a8-b641-477c-a721-fbc8e06bb5cb","block_type":"box","text":"refinancing.","page_number":367,"box":{"x":197,"y":312,"width":84,"height":13}},{"id":"7d098a34-cb68-49f7-8f96-21b3866f292c","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as large","page_number":367,"box":{"x":45,"y":331,"width":891,"height":13}},{"id":"b064c96f-bc17-4cc1-850b-fc5f1ed48634","block_type":"box","text":"as in the preceding group.","page_number":367,"box":{"x":197,"y":346,"width":187,"height":13}},{"id":"c409d005-41c6-43db-8bcb-80119bd4773b","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be narrow,","page_number":367,"box":{"x":45,"y":365,"width":894,"height":13}},{"id":"b5aba4c2-37ff-4159-a372-512ad0918352","block_type":"box","text":"and market access for refinancing is likely to be less well-established.","page_number":367,"box":{"x":197,"y":379,"width":499,"height":13}},{"id":"d42362da-fdd5-4328-aac5-4c65718b5f09","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may lack","page_number":367,"box":{"x":46,"y":399,"width":883,"height":12}},{"id":"62dc8db3-5223-49ce-ac68-051a3ee4259d","block_type":"box","text":"sufficient margins of protection.","page_number":367,"box":{"x":197,"y":413,"width":231,"height":13}},{"id":"fa2b0b96-ad43-4ce4-ab51-cd46d8375fb7","block_type":"box","text":"Description of Moody’s Demand Obligation Ratings","page_number":367,"box":{"x":45,"y":439,"width":382,"height":13}},{"id":"5ad85acf-6cbe-4ff8-afa6-156fa110e697","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a","page_number":367,"box":{"x":45,"y":464,"width":430,"height":13}},{"id":"a516213f-5826-4bf5-a3bd-020c7c2ad465","block_type":"box","text":"two-component rating is assigned. The components are a long-term","page_number":367,"box":{"x":480,"y":464,"width":469,"height":13}},{"id":"0320c0ee-ea48-48a4-9a12-c7f59fd483bb","block_type":"box","text":"rating and a short-term demand obligation rating. The long-term","page_number":367,"box":{"x":45,"y":479,"width":451,"height":13}},{"id":"a7c8ba14-365c-4671-a8a7-00482aa99078","block_type":"box","text":"rating addresses the issuer’s ability to meet scheduled principal","page_number":367,"box":{"x":500,"y":479,"width":433,"height":13}},{"id":"dadd470a-6bbe-4508-92ff-77d1ff942c02","block_type":"box","text":"and interest payments. The short-term demand obligation ratin","page_number":367,"box":{"x":46,"y":495,"width":437,"height":13}},{"id":"fb881088-5cf1-4f77-8222-84be14b76f23","block_type":"box","text":"g addresses the ability of the issuer or the liquidity provider to","page_number":367,"box":{"x":484,"y":495,"width":429,"height":13}},{"id":"4dddd34b-f463-4712-bac9-b65ec8ffa528","block_type":"box","text":"make payments associated with the purchase-price-upon-de","page_number":367,"box":{"x":45,"y":510,"width":413,"height":13}},{"id":"2a05a41b-6e7f-4b95-923f-c2d5325ccf36","block_type":"box","text":"mand feature (“demand feature”) of the VRDO. The short-term","page_number":367,"box":{"x":459,"y":510,"width":446,"height":13}},{"id":"57eacba4-e965-4d2c-ae50-1a93d5047c8b","block_type":"box","text":"demand obligation rating uses the VMIG scale. VMIG ratings","page_number":367,"box":{"x":46,"y":526,"width":429,"height":13}},{"id":"6146083b-92bb-4173-8739-db52ba58c9e7","block_type":"box","text":"with liquidity support use as an input the short-term Counterparty","page_number":367,"box":{"x":480,"y":526,"width":462,"height":13}},{"id":"b510ccde-a9a5-4c2b-9316-90a0b18d83cc","block_type":"box","text":"Risk Assessment of the support provider, or the long-term rating of t","page_number":367,"box":{"x":46,"y":541,"width":476,"height":13}},{"id":"4bb879c6-1e83-46ac-8e00-e68099ef06d7","block_type":"box","text":"he underlying obligor in the absence of third party liquidity","page_number":367,"box":{"x":522,"y":541,"width":411,"height":13}},{"id":"b724eccd-4364-4186-9a4a-4adddf68c92e","block_type":"box","text":"support. Transitions of VMIG ratings of demand obligations with conditional liquidity support differ from transitions on the","page_number":367,"box":{"x":46,"y":557,"width":867,"height":13}},{"id":"1f3a0590-6202-45b4-82fc-1cd202f55652","block_type":"box","text":"Prime scale to reflect the risk that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":367,"box":{"x":45,"y":572,"width":896,"height":13}},{"id":"a54dc51d-4c91-4f81-a374-cff8419b64bc","block_type":"box","text":"grade.","page_number":367,"box":{"x":45,"y":588,"width":42,"height":13}},{"id":"0d053360-78d0-4679-9532-186169635f80","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand feature is less than every","page_number":367,"box":{"x":45,"y":610,"width":903,"height":13}},{"id":"947b9b54-4ca7-4907-b0ac-de3ade657185","block_type":"box","text":"three years. If the frequency of the demand feature is less than three years but the purchase price is payable only with remarketing","page_number":367,"box":{"x":45,"y":626,"width":899,"height":12}},{"id":"28c9b655-4b8e-4b12-b795-412fe584d187","block_type":"box","text":"proceeds, the short-term demand obligation rating is “NR”.","page_number":367,"box":{"x":45,"y":641,"width":416,"height":13}},{"id":"5fa1d883-91db-452a-a459-c310817e807f","block_type":"box","text":"VMIG Scale","page_number":367,"box":{"x":45,"y":669,"width":85,"height":9}},{"id":"1d5394eb-5be5-45e1-8ede-c80e62d6539d","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior short","page_number":367,"box":{"x":45,"y":691,"width":897,"height":13}},{"id":"1f550382-42d6-4d01-9c84-283904a520fe","block_type":"box","text":"term credit strength of the liquidity provider and structural and legal protections that ensure the timely","page_number":367,"box":{"x":197,"y":705,"width":747,"height":13}},{"id":"67837c7f-b3a9-40ba-b2e0-c5706d6d8670","block_type":"box","text":"payment of purchase price upon demand.","page_number":367,"box":{"x":197,"y":719,"width":300,"height":13}},{"id":"63c9cc17-0f5f-4661-a3c1-bf41d5522054","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":367,"box":{"x":45,"y":739,"width":877,"height":12}},{"id":"88f45051-e434-4d81-a990-ebe8e1095d8c","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections that ensure the timely","page_number":367,"box":{"x":197,"y":753,"width":709,"height":13}},{"id":"6169f61b-89ba-4240-817e-daad3894e664","block_type":"box","text":"payment of purchase price upon demand.","page_number":367,"box":{"x":197,"y":767,"width":300,"height":13}},{"id":"2150120d-7ae0-43fb-873b-2a4b238fc41d","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the satisfactory","page_number":367,"box":{"x":45,"y":786,"width":891,"height":13}},{"id":"de239176-d661-4a8f-b2b9-3ae93afb50ca","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections that ensure the","page_number":367,"box":{"x":197,"y":801,"width":740,"height":12}},{"id":"c2a74605-2acc-4886-b3d5-2751abc0af3d","block_type":"box","text":"timely payment of purchase price upon demand.","page_number":367,"box":{"x":197,"y":815,"width":349,"height":13}},{"id":"e173ccdd-43ca-4158-a7c3-964be28e157a","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category may","page_number":367,"box":{"x":46,"y":834,"width":888,"height":13}},{"id":"8c057f6f-cfd0-4926-b9a8-18d4f33bbf3f","block_type":"box","text":"be supported by a liquidity provider that does not have a sufficiently strong short-term rating or may","page_number":367,"box":{"x":197,"y":848,"width":734,"height":13}},{"id":"0ce10d58-faa1-4eef-a360-36592c32d6c1","block_type":"box","text":"lack the structural or legal protections necessary to ensure the timely payment of purchase price upon","page_number":367,"box":{"x":197,"y":863,"width":736,"height":12}},{"id":"f18f0b8c-6601-4b17-804e-110ede501432","block_type":"box","text":"demand.","page_number":367,"box":{"x":197,"y":877,"width":61,"height":10}},{"id":"b41eae88-433c-471a-9de9-68caffdc75d5","block_type":"box","text":"A-3","page_number":367,"box":{"x":486,"y":916,"width":26,"height":10}},{"id":"37cd5e5a-428e-46ce-ac58-6329b6d62ae4","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":367,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"cf80dda1-eedb-4f21-87fd-235772512574","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":368,"box":{"x":45,"y":79,"width":708,"height":13}},{"id":"709e7cb5-3db9-4bfd-a62b-e04198878765","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with respect to a specific","page_number":368,"box":{"x":45,"y":105,"width":848,"height":12}},{"id":"9b382b2a-bf57-4506-8e87-551102448670","block_type":"box","text":"financial obligation, a specific class of financial obligations","page_number":368,"box":{"x":45,"y":120,"width":407,"height":13}},{"id":"9d4da7be-7438-4ade-99b6-a174959093fe","block_type":"box","text":", or a specific financial program (including ratings on medium-term","page_number":368,"box":{"x":453,"y":120,"width":466,"height":13}},{"id":"6956c33c-36ec-4750-92fd-3147336899d5","block_type":"box","text":"note programs and commercial paper programs). It takes into c","page_number":368,"box":{"x":45,"y":136,"width":440,"height":12}},{"id":"f5ee1ead-8eae-4371-9774-52f2ab94a932","block_type":"box","text":"onsideration the creditworthiness of guarantors, insurers, or other","page_number":368,"box":{"x":486,"y":136,"width":457,"height":12}},{"id":"3dbaacfb-b7a0-4e0c-82d8-269078ef6f44","block_type":"box","text":"forms of credit enhancement on the obligation and takes into a","page_number":368,"box":{"x":45,"y":151,"width":437,"height":13}},{"id":"3729bd0d-b634-4f63-91fe-7679ff314ea3","block_type":"box","text":"ccount the currency in which the obligation is denominated. The","page_number":368,"box":{"x":482,"y":151,"width":448,"height":13}},{"id":"656ab3a4-603b-4e26-a312-4a36ee9bda94","block_type":"box","text":"opinion reflects S&P’s view of the obligor’s capacity and willin","page_number":368,"box":{"x":46,"y":167,"width":436,"height":12}},{"id":"fc355973-102f-4b07-adcb-d0b3724ae9fc","block_type":"box","text":"gness to meet its financial commitments as they come due, and this","page_number":368,"box":{"x":482,"y":167,"width":463,"height":12}},{"id":"2c13b32e-5591-433e-b0d7-22c3eefaeeda","block_type":"box","text":"opinion may assess terms, such as collateral security and subordi","page_number":368,"box":{"x":46,"y":182,"width":447,"height":13}},{"id":"1b204ceb-1920-4002-9c3f-76a20c6f3376","block_type":"box","text":"nation, which could affect ultimate payment in the event of","page_number":368,"box":{"x":494,"y":182,"width":411,"height":13}},{"id":"17843dd0-b3da-4e1f-88bd-b848cc09e350","block_type":"box","text":"default.","page_number":368,"box":{"x":46,"y":198,"width":51,"height":10}},{"id":"80eff8e8-8576-4991-86a8-97fcb30e7cca","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term","page_number":368,"box":{"x":45,"y":221,"width":476,"height":13}},{"id":"5285a4dc-3d25-4127-84dd-c244b87259b3","block_type":"box","text":"issue credit ratings are generally assigned to those obligations","page_number":368,"box":{"x":526,"y":221,"width":423,"height":13}},{"id":"d8f80b6b-0e2d-4fbd-9b49-63bef5f463b7","block_type":"box","text":"considered short-term in the relevant market, typically with an original maturity of no more than 365 days. Short-term issue credit","page_number":368,"box":{"x":45,"y":236,"width":906,"height":13}},{"id":"a8a802b4-e68f-4a99-9324-198b67f4c90c","block_type":"box","text":"ratings are also used to indicate the creditworthiness of an obligor with respect to put features on long-term obligations. S&P","page_number":368,"box":{"x":45,"y":252,"width":869,"height":13}},{"id":"4c2e6eaa-2103-41a8-857b-0222b0116b08","block_type":"box","text":"would typically assign a long-term issue credit rating to an ob","page_number":368,"box":{"x":45,"y":267,"width":427,"height":13}},{"id":"30c946a2-5b8e-49ef-b6cd-9ab57fa4362f","block_type":"box","text":"ligation with an original maturity of greater than 365 days.","page_number":368,"box":{"x":473,"y":267,"width":410,"height":13}},{"id":"fe72ee85-9dd1-4d12-8cd5-c3175126fcdb","block_type":"box","text":"However, the ratings S&P assigns to certain instruments may div","page_number":368,"box":{"x":45,"y":283,"width":452,"height":13}},{"id":"c7971dc9-b9ed-4fbe-97e3-c76fbf53ea85","block_type":"box","text":"erge from these guidelines based on market practices. Medium","page_number":368,"box":{"x":497,"y":283,"width":438,"height":13}},{"id":"07e0ef53-1bfe-4229-bf97-e66da59e3b4c","block_type":"box","text":"term notes are assigned long-term ratings.","page_number":368,"box":{"x":45,"y":298,"width":289,"height":13}},{"id":"99c44197-1435-4ba5-af4e-b79fbc3c9440","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":368,"box":{"x":45,"y":329,"width":689,"height":13}},{"id":"39de4ffb-1665-43b4-8265-c01d0b9cbaab","block_type":"box","text":"• The likelihood of payment — the capacity and willingness of the obligor to meet its financial commitments on an","page_number":368,"box":{"x":80,"y":353,"width":849,"height":12}},{"id":"7cd85319-89e4-4308-878e-c1a0fadfc724","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":368,"box":{"x":106,"y":368,"width":417,"height":13}},{"id":"3f6a09b0-652b-4027-aa13-0f37a0ff61f4","block_type":"box","text":"• The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":368,"box":{"x":80,"y":391,"width":672,"height":13}},{"id":"87f12060-c6bc-46cb-95b2-2135148f6ea5","block_type":"box","text":"• The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":368,"box":{"x":80,"y":415,"width":792,"height":12}},{"id":"89611725-e67e-4bd7-accc-695885091956","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":368,"box":{"x":106,"y":430,"width":792,"height":13}},{"id":"3fcd8ac1-6551-456a-a0b4-63306fcf4eb8","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporat","page_number":368,"box":{"x":45,"y":453,"width":461,"height":13}},{"id":"a2410046-5199-40f8-a24e-90bacef47fe9","block_type":"box","text":"e an assessment of relative seniority or ultimate recovery in the","page_number":368,"box":{"x":506,"y":453,"width":434,"height":13}},{"id":"3cd492f2-da90-452c-a642-1323ec251519","block_type":"box","text":"event of default. Junior obligations are typically rated lower than senior obligations, to reflect lower priority in bankruptcy, as","page_number":368,"box":{"x":46,"y":469,"width":873,"height":13}},{"id":"e103f664-561a-46ee-8600-443ef0a63752","block_type":"box","text":"noted above. (Such differentiation may apply when an entity has both senior and subordinated obligations, secured and unsecured","page_number":368,"box":{"x":45,"y":484,"width":904,"height":13}},{"id":"427b4cf8-eabc-4809-b1d7-3bbacd35a218","block_type":"box","text":"obligations, or operating company and holding company obligations.)","page_number":368,"box":{"x":46,"y":500,"width":485,"height":13}},{"id":"d178b914-1491-42a4-90a6-cec8fe63a184","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":368,"box":{"x":45,"y":528,"width":232,"height":13}},{"id":"d88c2526-6e91-476c-8563-fdb490e6d29f","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":368,"box":{"x":45,"y":553,"width":881,"height":13}},{"id":"c027d420-5666-4a8f-8dc6-c12e6b301f54","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":368,"box":{"x":197,"y":567,"width":440,"height":13}},{"id":"0944372a-ab0f-4c14-b458-f8b0a00dca85","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The obligor’s","page_number":368,"box":{"x":45,"y":597,"width":904,"height":13}},{"id":"4805d68d-0fd5-425d-b592-51b5e3ad1c02","block_type":"box","text":"capacity to meet its financial commitments on the obligation is very strong.","page_number":368,"box":{"x":197,"y":611,"width":545,"height":13}},{"id":"15507e67-1aea-4918-9c83-63adbbb587ef","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in circumstances","page_number":368,"box":{"x":45,"y":630,"width":902,"height":13}},{"id":"901bd9f4-c58b-464b-8a16-5f71fa490cef","block_type":"box","text":"and economic conditions than obligations in higher-rated categories. However, the obligor’s capacity to","page_number":368,"box":{"x":197,"y":645,"width":753,"height":12}},{"id":"ab51746e-0b3d-4623-9e0f-71b76471475e","block_type":"box","text":"meet its financial commitments on the obligation is still strong.","page_number":368,"box":{"x":197,"y":659,"width":456,"height":13}},{"id":"691d1614-6f43-4940-8087-55ebeb34b979","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":368,"box":{"x":46,"y":678,"width":848,"height":13}},{"id":"ce731c09-52a3-41e9-89e9-44f67306b124","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":368,"box":{"x":197,"y":692,"width":705,"height":13}},{"id":"eb15454b-5a28-491f-800e-c9d0d6c9d4be","block_type":"box","text":"financial commitments on the obligation.","page_number":368,"box":{"x":197,"y":707,"width":298,"height":12}},{"id":"e97e0d69-6241-4b85-a91b-eb6ed944add4","block_type":"box","text":"BB, B, CCC, CC,","page_number":368,"box":{"x":46,"y":727,"width":123,"height":11}},{"id":"0ee2ceb1-0446-46b6-82bc-aab581a1e32b","block_type":"box","text":"and C Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":368,"box":{"x":46,"y":740,"width":835,"height":13}},{"id":"9737541b-b0fd-4b52-a183-761397ecac0d","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such obligations","page_number":368,"box":{"x":197,"y":754,"width":749,"height":13}},{"id":"2253b9c1-a55c-4b2e-9efd-3aab352cb95a","block_type":"box","text":"will likely have some quality and protective characteristics, these may be outweighed by large","page_number":368,"box":{"x":197,"y":769,"width":677,"height":13}},{"id":"524adcd2-8a75-4174-82d3-353e00dc4717","block_type":"box","text":"uncertainties or major exposure to adverse conditions.","page_number":368,"box":{"x":197,"y":783,"width":393,"height":13}},{"id":"8d8f9298-266e-44e4-bca6-cb499fa2dcdb","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":368,"box":{"x":46,"y":802,"width":875,"height":13}},{"id":"a719d69f-9368-4283-a703-48745bcbb8eb","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions","page_number":368,"box":{"x":197,"y":817,"width":729,"height":12}},{"id":"8caf01ed-da59-4884-9708-bad7e3f132e5","block_type":"box","text":"that could lead to the obligor’s inadequate capacity to meet its financial commitments on the","page_number":368,"box":{"x":197,"y":831,"width":673,"height":13}},{"id":"1825d9fb-e889-4f10-8dc3-b1d89080847d","block_type":"box","text":"obligation.","page_number":368,"box":{"x":197,"y":845,"width":77,"height":13}},{"id":"43b7f50d-096b-4927-84f8-863fd216d7d0","block_type":"box","text":"A-4","page_number":368,"box":{"x":486,"y":916,"width":26,"height":10}},{"id":"38a09e58-b9c5-480f-bb1b-f1cea2469faf","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":368,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"fbde9b80-c6a7-4eb8-9889-0132a05dc383","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":369,"box":{"x":46,"y":83,"width":888,"height":12}},{"id":"8102d1fe-ee3e-455b-bb93-a7d224bd63a7","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":369,"box":{"x":197,"y":97,"width":702,"height":13}},{"id":"8460cb3a-e846-4187-be95-313c5e7aa566","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":369,"box":{"x":197,"y":111,"width":716,"height":13}},{"id":"cebcd227-8627-4fe9-a6fa-bc2e625f9fb8","block_type":"box","text":"financial commitments on the obligation.","page_number":369,"box":{"x":197,"y":125,"width":298,"height":13}},{"id":"01b84e2e-4247-4ce4-9b1b-5bf230a68829","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":369,"box":{"x":46,"y":145,"width":867,"height":12}},{"id":"7d00d784-52dc-4159-8581-975056f145ad","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on the","page_number":369,"box":{"x":197,"y":159,"width":734,"height":13}},{"id":"67e2690c-0df5-4483-9d8d-ea1aacbf2873","block_type":"box","text":"obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely","page_number":369,"box":{"x":197,"y":173,"width":741,"height":13}},{"id":"7283eaed-42bb-4b3a-bbd7-8c75f5015315","block_type":"box","text":"to have the capacity to meet its financial commitments on the obligation.","page_number":369,"box":{"x":197,"y":187,"width":528,"height":13}},{"id":"88fab604-591e-4626-ae16-87d0d7d7b978","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when a","page_number":369,"box":{"x":46,"y":207,"width":896,"height":12}},{"id":"6c586ccc-2a24-4664-b074-24bea102c9f9","block_type":"box","text":"default has not yet occurred but S&P expects default to be a virtual certainty, regardless of the","page_number":369,"box":{"x":197,"y":221,"width":687,"height":13}},{"id":"664c50a7-ece9-4fdf-9324-4c9377d77548","block_type":"box","text":"anticipated time to default.","page_number":369,"box":{"x":197,"y":235,"width":195,"height":13}},{"id":"cf473a8f-bcdc-4a4d-8e49-87c7af56d5ca","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected to","page_number":369,"box":{"x":46,"y":254,"width":896,"height":13}},{"id":"15422221-4b30-4ab7-8738-f41ba7ce99e5","block_type":"box","text":"have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":369,"box":{"x":197,"y":269,"width":705,"height":13}},{"id":"7df72b82-8574-4a90-ae91-48283b26f4e5","block_type":"box","text":"higher.","page_number":369,"box":{"x":197,"y":283,"width":49,"height":13}},{"id":"80de717a-5ba7-44c2-9cd8-4c5c81a4c6f2","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":369,"box":{"x":45,"y":302,"width":847,"height":13}},{"id":"fc210c12-8089-4eb9-8bd9-77879fae26d4","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the date","page_number":369,"box":{"x":197,"y":317,"width":740,"height":12}},{"id":"b5db5b40-6243-4154-839c-2af47452955f","block_type":"box","text":"due, unless S&P believes that such payments will be made within five business days in the absence of a","page_number":369,"box":{"x":197,"y":331,"width":745,"height":13}},{"id":"3c103de5-ef92-4105-b98d-2d35457d4a2f","block_type":"box","text":"stated grace period or within the earlier of the stated grace period or 30 calendar days. The ‘D’ rating","page_number":369,"box":{"x":197,"y":345,"width":737,"height":13}},{"id":"60c8f165-51d9-4ba9-be86-cd22349f50dc","block_type":"box","text":"also will be used upon the filing of a bankruptcy petition or the taking of similar action and where","page_number":369,"box":{"x":197,"y":359,"width":715,"height":13}},{"id":"e7d2a914-3ed7-4f17-8614-a6b3c9b2ab87","block_type":"box","text":"default on an obligation is a virtual certainty, for example due to automatic stay provisions. A rating on","page_number":369,"box":{"x":197,"y":373,"width":755,"height":13}},{"id":"c2707b57-ba38-4cd2-84d7-256860b38498","block_type":"box","text":"an obligation is lowered to ‘D’ if it is subject to a distressed debt restructuring.","page_number":369,"box":{"x":197,"y":388,"width":569,"height":12}},{"id":"8599dbe8-93c4-49d6-946f-7d1d4e258da0","block_type":"box","text":"* Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the","page_number":369,"box":{"x":47,"y":411,"width":898,"height":13}},{"id":"52d5480e-677b-446f-9a51-60d3c6f150da","block_type":"box","text":"rating categories.","page_number":369,"box":{"x":45,"y":427,"width":118,"height":12}},{"id":"2c9bfd36-5680-4a61-a425-cd46524bf707","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":369,"box":{"x":46,"y":455,"width":234,"height":13}},{"id":"54777f60-afa8-472b-8260-86003df36a8f","block_type":"box","text":"A-1 A short-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":369,"box":{"x":45,"y":479,"width":884,"height":13}},{"id":"4c20fe3a-0b12-4e1f-9f1b-7a51193e06e7","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations are","page_number":369,"box":{"x":197,"y":494,"width":750,"height":12}},{"id":"d2539eae-affe-4634-8ba4-abc2dc3aea21","block_type":"box","text":"designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":369,"box":{"x":197,"y":508,"width":672,"height":13}},{"id":"b6cbb39a-aa53-415d-b4f7-4a75e78f5056","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":369,"box":{"x":197,"y":522,"width":393,"height":13}},{"id":"4d63aa78-bb9f-4ad1-9f8a-7f97d1f70dbc","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes in","page_number":369,"box":{"x":45,"y":536,"width":884,"height":13}},{"id":"9735039c-5cdc-4cae-bfe0-32b1a0d57e84","block_type":"box","text":"circumstances and economic conditions than obligations in higher rating categories. However, the","page_number":369,"box":{"x":197,"y":550,"width":711,"height":13}},{"id":"68f27511-ee72-4de3-832b-053905016cde","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":369,"box":{"x":197,"y":565,"width":616,"height":12}},{"id":"ca33c3b0-7dc8-40a6-9150-6b4aa1c94e47","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":369,"box":{"x":45,"y":584,"width":843,"height":13}},{"id":"dae37bf1-84d8-40a0-8a94-c90fdc9816fd","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to meet","page_number":369,"box":{"x":197,"y":598,"width":753,"height":13}},{"id":"691c63de-5167-4736-a971-53966ce18ee5","block_type":"box","text":"its financial commitments on the obligation.","page_number":369,"box":{"x":197,"y":612,"width":319,"height":13}},{"id":"4cbd62ea-93f0-49d8-9dd6-4f1df547d2b0","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":369,"box":{"x":46,"y":632,"width":798,"height":13}},{"id":"e4f42027-ea4e-4704-b572-150617cc9c45","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however, it","page_number":369,"box":{"x":197,"y":646,"width":730,"height":13}},{"id":"c42c4198-4592-4ed7-b05a-c30c6ae65102","block_type":"box","text":"faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":369,"box":{"x":197,"y":660,"width":701,"height":13}},{"id":"7de79134-6d46-4f09-bcb6-d577fe265aad","block_type":"box","text":"financial commitments.","page_number":369,"box":{"x":197,"y":674,"width":169,"height":10}},{"id":"bae1aaea-d780-4b8f-a9d3-f861c433adb6","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":369,"box":{"x":46,"y":694,"width":842,"height":13}},{"id":"1a4587fa-89ec-497d-97fe-de7d037d13dc","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":369,"box":{"x":197,"y":708,"width":654,"height":13}},{"id":"93cfc5ad-7448-45ee-bb27-6cb35de43106","block_type":"box","text":"commitments on the obligation.","page_number":369,"box":{"x":197,"y":722,"width":230,"height":13}},{"id":"e0af2d37-a191-48c6-af11-118924e4c4c9","block_type":"box","text":"D A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":369,"box":{"x":45,"y":742,"width":866,"height":12}},{"id":"1a34c2aa-65c8-4b53-b175-edb54d679d4f","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made on","page_number":369,"box":{"x":197,"y":756,"width":731,"height":13}},{"id":"1f76981a-d653-4145-a0fa-f3dbc6875c68","block_type":"box","text":"the date due, unless S&P believes that such payments will be made within any stated grace period.","page_number":369,"box":{"x":197,"y":770,"width":712,"height":13}},{"id":"6bf3f306-1687-4192-8171-9845141178ed","block_type":"box","text":"However, any stated grace period longer than five business days will be treated as five business days.","page_number":369,"box":{"x":197,"y":784,"width":730,"height":13}},{"id":"b73af7a8-63ea-49c9-be1d-4638bbebdb23","block_type":"box","text":"The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action","page_number":369,"box":{"x":197,"y":798,"width":755,"height":13}},{"id":"15bb2d5e-ec22-459c-be35-2dc5ee6ad08d","block_type":"box","text":"and where default on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":369,"box":{"x":197,"y":813,"width":747,"height":12}},{"id":"fb33e24f-d53f-486b-aefb-bc7565b6b286","block_type":"box","text":"A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt restructuring.","page_number":369,"box":{"x":197,"y":827,"width":657,"height":13}},{"id":"a6e86022-c806-442a-ba37-a19270386df9","block_type":"box","text":"A-5","page_number":369,"box":{"x":486,"y":916,"width":26,"height":10}},{"id":"dd65f87b-53f0-40f5-859f-6bf66a4f914c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":369,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"55fc68d6-57ae-4886-a75a-31a341cc1b4c","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":370,"box":{"x":45,"y":79,"width":424,"height":13}},{"id":"d543ee25-49fb-411e-aed2-411573fe6f38","block_type":"box","text":"An S&P U.S. municipal note rating reflects S&P’s opinion about th","page_number":370,"box":{"x":45,"y":105,"width":467,"height":12}},{"id":"6b5986c7-5ef0-494e-b427-b5e8989e5afd","block_type":"box","text":"e liquidity factors and market access risks unique to the notes.","page_number":370,"box":{"x":513,"y":105,"width":428,"height":12}},{"id":"e2ea8236-2d8d-425f-8f9d-20c641ed5df8","block_type":"box","text":"Notes due in three years or less will likely receive a note rating. No","page_number":370,"box":{"x":45,"y":120,"width":464,"height":13}},{"id":"35a9be00-1cf9-4e11-a725-a7c3d48e9ed0","block_type":"box","text":"tes with an original maturity of more than three years will most","page_number":370,"box":{"x":509,"y":120,"width":441,"height":13}},{"id":"aaece6e1-4561-42dc-a35f-bc65fcabd618","block_type":"box","text":"likely receive a long-term debt rating. In determining which ty","page_number":370,"box":{"x":45,"y":136,"width":429,"height":12}},{"id":"4f8268a7-888f-45d9-af89-20cf43ca6f40","block_type":"box","text":"pe of rating, if any, to assign, S&P’s analysis will review the","page_number":370,"box":{"x":475,"y":136,"width":414,"height":12}},{"id":"efb0e541-ebe3-4b45-ada7-fe08a965b3bd","block_type":"box","text":"following considerations:","page_number":370,"box":{"x":45,"y":151,"width":174,"height":13}},{"id":"d2b689bf-b638-4f2f-b12d-f03e7e7431bf","block_type":"box","text":"• Amortization schedule — the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":370,"box":{"x":80,"y":174,"width":857,"height":13}},{"id":"4ce702b7-d535-4b0c-b8da-5fa87c0cb330","block_type":"box","text":"as a note; and","page_number":370,"box":{"x":106,"y":190,"width":100,"height":12}},{"id":"4dd8da7a-cd86-4a69-89d4-4e334caab69d","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":370,"box":{"x":80,"y":213,"width":841,"height":13}},{"id":"c5e347d4-918f-4ea5-ab59-161e208b7934","block_type":"box","text":"treated as a note.","page_number":370,"box":{"x":106,"y":229,"width":123,"height":10}},{"id":"fc29b5f1-558d-4ad5-8ffe-9c979d10cbdd","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":370,"box":{"x":46,"y":252,"width":438,"height":13}},{"id":"6ca71524-0492-42f1-ba29-73f026b8340b","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong capacity to","page_number":370,"box":{"x":46,"y":276,"width":889,"height":13}},{"id":"38da6003-740f-4e72-81cb-7568a6f96d0e","block_type":"box","text":"pay debt service is given a plus (+) designation.","page_number":370,"box":{"x":197,"y":291,"width":339,"height":12}},{"id":"352f3268-af4c-4e9b-adb1-5cbfec659088","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":370,"box":{"x":46,"y":310,"width":869,"height":13}},{"id":"9bd9f06d-c420-4a71-a9b3-d349cf85af42","block_type":"box","text":"economic changes over the term of the notes.","page_number":370,"box":{"x":197,"y":324,"width":326,"height":13}},{"id":"6893ba36-e599-45c0-b4e6-765585e5bce6","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":370,"box":{"x":46,"y":344,"width":510,"height":12}},{"id":"ec93991c-3f04-49fa-94d0-9dd4a586a0be","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt restructuring, or","page_number":370,"box":{"x":45,"y":363,"width":897,"height":13}},{"id":"caa1ca53-2e2d-407f-a158-9d12456f5e45","block_type":"box","text":"the filing of a bankruptcy petition or the taking of similar action and where default on an obligation is","page_number":370,"box":{"x":197,"y":377,"width":744,"height":13}},{"id":"0f50db8c-f440-4664-a078-2ddd050f8b95","block_type":"box","text":"a virtual certainty, for example due to automatic stay provisions.","page_number":370,"box":{"x":197,"y":391,"width":470,"height":13}},{"id":"f2be7d99-c8ff-4219-acfc-2e720c0028f4","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch’s”) Credit Ratings Scales","page_number":370,"box":{"x":45,"y":420,"width":450,"height":13}},{"id":"2d450ce0-e79c-4fc7-b111-4087572bd2b2","block_type":"box","text":"Fitch Ratings publishes opinions on a variety of scales. The most common of these are credit ratings, but the agency also publishes","page_number":370,"box":{"x":45,"y":446,"width":904,"height":13}},{"id":"6a88c83d-f090-405e-a740-c0fe627ad61c","block_type":"box","text":"ratings, scores and other relative opinions relating to financial or op","page_number":370,"box":{"x":45,"y":461,"width":471,"height":13}},{"id":"baca1ce6-68d4-487a-9593-69d8fdff8be7","block_type":"box","text":"erational strength. For example, Fitch also provides specialized","page_number":370,"box":{"x":516,"y":461,"width":435,"height":13}},{"id":"2e827625-7c8f-443d-8022-e88bef406746","block_type":"box","text":"ratings of servicers of residential and commercial mortgages, asset managers and funds. In each case, users should refer to the","page_number":370,"box":{"x":45,"y":477,"width":869,"height":13}},{"id":"7c393e56-cf2f-40ed-8a43-2884bec97b0c","block_type":"box","text":"definitions of each individual scale for guidance on the dimensions of risk covered in each assessment.","page_number":370,"box":{"x":46,"y":492,"width":704,"height":13}},{"id":"7f3bef75-21ce-41a3-99b1-f8edd8a98db5","block_type":"box","text":"Fitch’s credit ratings relating to issuers are an opinion on the rel","page_number":370,"box":{"x":45,"y":515,"width":442,"height":13}},{"id":"42c2ca8b-cc2e-4ef0-9a46-5b6db2523566","block_type":"box","text":"ative ability of an entity to meet financial commitments, such as","page_number":370,"box":{"x":488,"y":515,"width":441,"height":13}},{"id":"4f2fdf95-b8bd-44e8-909d-219475d860d8","block_type":"box","text":"interest, preferred dividends, repayment of principal, insurance","page_number":370,"box":{"x":45,"y":531,"width":435,"height":13}},{"id":"7d551e71-fa76-42e4-af40-a4334c2fb02e","block_type":"box","text":"claims or counterparty obligations. Credit ratings relating to","page_number":370,"box":{"x":485,"y":531,"width":418,"height":13}},{"id":"ee777c9e-a142-469c-b6b3-2a35ce6cf7c9","block_type":"box","text":"securities and obligations of an issuer can include a recovery expectation. Credit ratings are used by investors as indications of the","page_number":370,"box":{"x":46,"y":546,"width":898,"height":13}},{"id":"caf5fd77-e2c6-42c8-901f-56197f25e909","block_type":"box","text":"likelihood of receiving the money owed to them in accordance with the terms on which they invested. The agency’s credit ratings","page_number":370,"box":{"x":45,"y":562,"width":894,"height":13}},{"id":"665ab705-6c29-4a30-8b56-828d4802c579","block_type":"box","text":"cover the global spectrum of corporate, sovereign financial, bank,","page_number":370,"box":{"x":45,"y":577,"width":455,"height":13}},{"id":"7fde0550-ee6e-4c42-b6d4-43763e5ce6c3","block_type":"box","text":"insurance, and public finance entities (including supranational","page_number":370,"box":{"x":505,"y":577,"width":430,"height":13}},{"id":"4135bfba-ac61-4604-9630-7891717679ff","block_type":"box","text":"and sub-national entities) and the securities or other obligations","page_number":370,"box":{"x":46,"y":593,"width":440,"height":13}},{"id":"8ddab300-6e5d-4221-a9b7-1c377e8da7ee","block_type":"box","text":"they issue, as well as structured finance securities backed by","page_number":370,"box":{"x":491,"y":593,"width":414,"height":13}},{"id":"7f444b6e-18a3-4c41-b5c6-ddf86145895b","block_type":"box","text":"receivables or other financial assets.","page_number":370,"box":{"x":45,"y":608,"width":247,"height":11}},{"id":"b381c4c3-3faa-4161-8370-82ddf3e846fe","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to describe the","page_number":370,"box":{"x":45,"y":632,"width":846,"height":13}},{"id":"a6723840-1d7a-4d6f-be88-5352f79e263f","block_type":"box","text":"categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment grade and speculative","page_number":370,"box":{"x":45,"y":647,"width":866,"height":13}},{"id":"40677077-1fb1-450c-9f5c-d4bdd9b87d65","block_type":"box","text":"grade are market conventions and do not imply any recommendation or endorsement of a specific security for investment","page_number":370,"box":{"x":45,"y":663,"width":844,"height":13}},{"id":"19ce45b8-f5ff-45c5-b19f-51be48610ae0","block_type":"box","text":"purposes. Investment grade categories indicate relatively low to m","page_number":370,"box":{"x":45,"y":678,"width":456,"height":13}},{"id":"e475ac45-e9d6-4943-bc69-67261d172cb7","block_type":"box","text":"oderate credit risk, while ratings in the speculative categories","page_number":370,"box":{"x":502,"y":678,"width":420,"height":13}},{"id":"a1b144f0-c990-4500-9a75-dbd4c2150172","block_type":"box","text":"either signal a higher level of credit risk or that a default has already occurred.","page_number":370,"box":{"x":46,"y":694,"width":540,"height":13}},{"id":"ef1bc73f-1eb9-4962-a280-b82646cde3b6","block_type":"box","text":"For the convenience of investors, Fitch may also include issues relating to a rated issuer that are not and have not been rated on its","page_number":370,"box":{"x":45,"y":717,"width":903,"height":13}},{"id":"6ac17f81-8b2f-4d54-acc3-988715af661a","block_type":"box","text":"web page. Such issues are also denoted as ‘NR’.","page_number":370,"box":{"x":45,"y":733,"width":330,"height":12}},{"id":"72a346bf-f63e-4c88-9034-22d36036e69a","block_type":"box","text":"Credit ratings express risk in relative rank order, which is to say","page_number":370,"box":{"x":46,"y":756,"width":443,"height":13}},{"id":"8cc75b43-16b9-4d0d-a278-434201de5fd7","block_type":"box","text":"they are ordinal measures of credit risk and are not predictive of a","page_number":370,"box":{"x":494,"y":756,"width":457,"height":13}},{"id":"58892b49-34b4-4e44-9c59-ad96912a5dfc","block_type":"box","text":"specific frequency of default or loss. For information about the historical performance of ratings please refer to Fitch’s Ratings","page_number":370,"box":{"x":46,"y":771,"width":874,"height":13}},{"id":"1690cd77-a29b-45b4-9a4d-22d73241d833","block_type":"box","text":"Transition and Default studies which detail the historical de","page_number":370,"box":{"x":45,"y":787,"width":415,"height":10}},{"id":"0d255fcc-54f0-4a1d-9808-841591ed476e","block_type":"box","text":"fault rates and their meaning. The European Securities and Markets","page_number":370,"box":{"x":461,"y":787,"width":469,"height":13}},{"id":"2d1eb8e9-a389-4d0d-9e6d-c30a2f02a674","block_type":"box","text":"Authority also maintains a central repository of historical default rates.","page_number":370,"box":{"x":45,"y":802,"width":492,"height":13}},{"id":"c7aeefd2-f4ae-4acb-8ade-e551e0ddfcc2","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than","page_number":370,"box":{"x":45,"y":826,"width":440,"height":12}},{"id":"00fe5ebc-3986-4631-991a-b1af04f3d49f","block_type":"box","text":"credit risk. In particular, ratings do not deal with the risk of a","page_number":370,"box":{"x":490,"y":826,"width":426,"height":12}},{"id":"042a65fa-4c44-4b27-8e5c-d633c5b6d6ce","block_type":"box","text":"market value loss on a rated security due to changes in interest rates, liquidity and other market considerations. However, in terms","page_number":370,"box":{"x":45,"y":841,"width":905,"height":13}},{"id":"4bbf007c-2d1b-4554-86c8-0f262e127b63","block_type":"box","text":"of payment obligation on the rated liability, market risk may be c","page_number":370,"box":{"x":46,"y":857,"width":453,"height":12}},{"id":"8ae87f44-2691-473c-8e28-a71c799ddde3","block_type":"box","text":"onsidered to the extent that it influences the ability of an issuer to","page_number":370,"box":{"x":499,"y":857,"width":454,"height":12}},{"id":"a937f4d0-d082-4426-86f5-50f1b6694a8a","block_type":"box","text":"pay upon a commitment.","page_number":370,"box":{"x":45,"y":873,"width":174,"height":12}},{"id":"ebe9e24b-2fc0-4a8e-9c87-dc3adc6edff2","block_type":"box","text":"A-6","page_number":370,"box":{"x":486,"y":916,"width":26,"height":10}},{"id":"aeed79a6-686c-42c6-beb9-c14da80411d5","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":370,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d3bdef24-1b65-44de-a84e-bb0fa4f7ac50","block_type":"box","text":"Ratings nonetheless do not reflect market risk to the extent that the","page_number":371,"box":{"x":46,"y":79,"width":466,"height":13}},{"id":"466026c9-e4e4-45ab-b107-79e306337ef3","block_type":"box","text":"y influence the size or other conditionality of the obligation to","page_number":371,"box":{"x":513,"y":79,"width":429,"height":13}},{"id":"f329c68f-cc65-4951-869f-94bd9dddca56","block_type":"box","text":"pay upon a commitment (for example, in the case of index-linked bonds).","page_number":371,"box":{"x":45,"y":94,"width":510,"height":13}},{"id":"03a5ee8c-9e45-4314-ba5c-ec72f6b78843","block_type":"box","text":"In the default components of ratings assigned to individual obliga","page_number":371,"box":{"x":45,"y":118,"width":454,"height":12}},{"id":"b66c5736-083a-4e44-b05c-0f2b1bdc50ac","block_type":"box","text":"tions or instruments, the agency typically rates to the likelihood","page_number":371,"box":{"x":500,"y":118,"width":440,"height":12}},{"id":"99fc5d3c-64c7-493e-86e4-3c356181aae5","block_type":"box","text":"of non-payment or default in accordance with the terms of that i","page_number":371,"box":{"x":46,"y":133,"width":447,"height":13}},{"id":"1052deba-e7e1-46c8-b6c4-e018100f1943","block_type":"box","text":"nstrument’s documentation. In limited cases, Fitch may include","page_number":371,"box":{"x":493,"y":133,"width":437,"height":13}},{"id":"1d05daa4-1eb4-40b7-abfa-9cb5bcb7cca4","block_type":"box","text":"additional considerations (i.e. rate to a higher or lower standa","page_number":371,"box":{"x":46,"y":149,"width":428,"height":12}},{"id":"ef17751a-97b0-4468-9753-458e0ddb24ee","block_type":"box","text":"rd than that implied in the obligation’s documentation).","page_number":371,"box":{"x":475,"y":149,"width":386,"height":12}},{"id":"7e58737e-9670-4c68-a75a-eccdeea51379","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or certain note issuance programs or","page_number":371,"box":{"x":45,"y":172,"width":908,"height":13}},{"id":"a7462736-9771-4f51-b1bb-f54312da88d4","block_type":"box","text":"for private ratings. In this case the rating is not published, but only provided to the issuer or its agents in the form of a rating letter.","page_number":371,"box":{"x":45,"y":187,"width":907,"height":13}},{"id":"791bebfa-d4e9-4440-8182-836fe1e2b585","block_type":"box","text":"The primary credit rating scales may also be used to provide ratings for a more narrow scope, including interest strips and return","page_number":371,"box":{"x":45,"y":211,"width":894,"height":12}},{"id":"dc5541e3-8569-4a5f-9f97-58d2521b29c6","block_type":"box","text":"of principal or in other forms of opinions such as credit opinions","page_number":371,"box":{"x":46,"y":226,"width":448,"height":13}},{"id":"65be990f-631e-4cda-bc15-1cbacd1bc160","block_type":"box","text":"or rating assessment services. Credit opinions are either a notch","page_number":371,"box":{"x":499,"y":226,"width":444,"height":13}},{"id":"248bd8cc-e528-4a03-8413-c6ae512b16fb","block_type":"box","text":"or category-specific view using the primary rating scale and o","page_number":371,"box":{"x":46,"y":242,"width":424,"height":12}},{"id":"31a9c303-361d-422a-a61a-f64834697e33","block_type":"box","text":"mit one or more characteristics of a full rating or meet them to a","page_number":371,"box":{"x":471,"y":242,"width":446,"height":12}},{"id":"89f9dcb4-6492-40a1-a2cb-1a4a34577ad2","block_type":"box","text":"different standard. Credit opinions will be indicated using a lower case letter symbol combined with either an ‘*’ (e.g. ‘bbb+*’) or","page_number":371,"box":{"x":46,"y":257,"width":897,"height":13}},{"id":"4dd39b7a-5cfb-4efe-b4ff-6c91589bb470","block_type":"box","text":"(cat) suffix to denote the opinion status. Credit opinions will be point-in-time typically but may be monitored if the analytical","page_number":371,"box":{"x":46,"y":273,"width":869,"height":12}},{"id":"0f8fffd2-39d1-49a5-a792-347ee79b685e","block_type":"box","text":"group believes information will be sufficiently available. Rating a","page_number":371,"box":{"x":45,"y":288,"width":451,"height":13}},{"id":"96c7b794-771c-48c4-9a0a-7bbd37ed2dc8","block_type":"box","text":"ssessment services are a notch-specific view using the primary","page_number":371,"box":{"x":497,"y":288,"width":426,"height":13}},{"id":"1972ad70-58f8-4e0a-89e2-82b80d2e03fa","block_type":"box","text":"rating scale of how an existing or potential rating may be changed by a given set of hypothetical circumstances. While credit","page_number":371,"box":{"x":45,"y":304,"width":861,"height":12}},{"id":"84914773-171f-4347-af8b-521307ba8990","block_type":"box","text":"opinions and rating assessment services are point-in-time and are","page_number":371,"box":{"x":46,"y":319,"width":449,"height":13}},{"id":"71141530-441b-427c-b595-2729237893cd","block_type":"box","text":"not monitored, they may have a directional watch or outlook","page_number":371,"box":{"x":500,"y":319,"width":425,"height":13}},{"id":"6907701f-cb30-4571-8246-def4cf775e1d","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":371,"box":{"x":46,"y":335,"width":425,"height":12}},{"id":"02a318a8-b8f2-4794-a6e6-e7f39dd0dd86","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":371,"box":{"x":45,"y":363,"width":575,"height":13}},{"id":"ff4b2a5a-3b2e-4824-b433-38cfd3e83baa","block_type":"box","text":"Ratings of individual securities or financial obligations of a corpor","page_number":371,"box":{"x":46,"y":389,"width":459,"height":13}},{"id":"81715093-e548-4334-bbaf-09f75551d63e","block_type":"box","text":"ate issuer address relative vulnerability to default on an ordinal","page_number":371,"box":{"x":506,"y":389,"width":436,"height":13}},{"id":"fe005621-7014-4d9b-8d8a-114118e18c2a","block_type":"box","text":"scale. In addition, for financial obligations in corporate fin","page_number":371,"box":{"x":46,"y":404,"width":405,"height":13}},{"id":"db5fcc4b-f236-48a0-9403-3793b517cee4","block_type":"box","text":"ance, a measure of recovery given default on that liability is also","page_number":371,"box":{"x":451,"y":404,"width":443,"height":13}},{"id":"c5462834-bc0c-4fc3-8bf9-be22e7d4ffb6","block_type":"box","text":"included in the rating assessment. This notably applies to covered bonds ratings, which incorporate both an indication of the","page_number":371,"box":{"x":45,"y":420,"width":864,"height":13}},{"id":"8118657e-fcab-4905-9eb0-bdaaf2714f8b","block_type":"box","text":"probability of default and of the recovery given a default of this debt instrument. On the contrary, Ratings of debtor-in-possession","page_number":371,"box":{"x":45,"y":435,"width":903,"height":13}},{"id":"04ff265c-ce58-4417-ad13-a53333ffde4e","block_type":"box","text":"(“DIP”) obligations incorporate the expectation of full repayment.","page_number":371,"box":{"x":46,"y":451,"width":459,"height":13}},{"id":"5bdd53b1-61a5-4046-82aa-29fb7c132500","block_type":"box","text":"The relationship between the issuer scale and obligation scale assu","page_number":371,"box":{"x":45,"y":474,"width":459,"height":13}},{"id":"f86d2db1-33f2-4dab-9dcb-a75262094e41","block_type":"box","text":"mes a generic historical average recovery. Individual obligations","page_number":371,"box":{"x":504,"y":474,"width":442,"height":13}},{"id":"ed68e05b-e3a8-4a6f-9538-e149a561ffd7","block_type":"box","text":"can be assigned ratings higher, lower, or the same as that entity’s","page_number":371,"box":{"x":45,"y":490,"width":449,"height":12}},{"id":"9cb91d70-db8a-4196-a9c2-0e06007076f8","block_type":"box","text":"issuer rating or issuer default rating (“IDR”), based on their","page_number":371,"box":{"x":500,"y":490,"width":415,"height":12}},{"id":"c5e3c5fc-8714-434e-9a00-057accd5c0f3","block_type":"box","text":"relative ranking, relative vulnerability to default or based on explicit Recovery Ratings.","page_number":371,"box":{"x":45,"y":505,"width":602,"height":13}},{"id":"0fbd35af-dab8-45b4-a4f3-bf608d6015ae","block_type":"box","text":"As a result, individual obligations of entities, such as corporations","page_number":371,"box":{"x":45,"y":528,"width":456,"height":13}},{"id":"e8ec8f67-9ce5-4634-9a01-7ab878f39895","block_type":"box","text":", are assigned ratings higher, lower, or the same as that entity’s","page_number":371,"box":{"x":502,"y":528,"width":435,"height":13}},{"id":"5ad735d2-6dbb-4eb4-93ac-3e87b9f2d68e","block_type":"box","text":"issuer rating or IDR, except DIP obligation ratings that are","page_number":371,"box":{"x":45,"y":544,"width":408,"height":13}},{"id":"0a3bd313-f07c-4084-bb82-57df88adc66c","block_type":"box","text":"not based off an IDR. At the lower end of the ratings scale, Fitch","page_number":371,"box":{"x":458,"y":544,"width":448,"height":13}},{"id":"6d47de1b-cd38-40cf-a27a-d160cb8d837f","block_type":"box","text":"publishes explicit Recovery Ratings in many cases to","page_number":371,"box":{"x":45,"y":559,"width":364,"height":13}},{"id":"453a89f4-e5c2-4050-b7c5-a3276d6f2d9b","block_type":"box","text":"complement issuer and obligation ratings.","page_number":371,"box":{"x":414,"y":559,"width":290,"height":13}},{"id":"fe165396-0e1f-454f-bc2a-36405f282222","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":371,"box":{"x":45,"y":583,"width":381,"height":12}},{"id":"06e96a44-5205-4d47-84fc-d25d9642beb7","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of credit risk. They are assigned","page_number":371,"box":{"x":45,"y":605,"width":885,"height":12}},{"id":"93eca93e-7e28-4008-a05d-ec9252dd72a0","block_type":"box","text":"only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is","page_number":371,"box":{"x":197,"y":619,"width":732,"height":13}},{"id":"7c2d08a6-55c4-4f85-9e38-8bc00b26a1a5","block_type":"box","text":"highly unlikely to be adversely affected by foreseeable events.","page_number":371,"box":{"x":197,"y":633,"width":443,"height":13}},{"id":"922de755-b9b6-4a20-8e74-9f22326d3e4d","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low credit risk. They indicate very","page_number":371,"box":{"x":45,"y":652,"width":892,"height":13}},{"id":"b6199f31-922f-4ef6-9255-062a8221392a","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to","page_number":371,"box":{"x":197,"y":667,"width":737,"height":12}},{"id":"0949ad58-2725-4371-a9ef-8bf0e2d52565","block_type":"box","text":"foreseeable events.","page_number":371,"box":{"x":197,"y":681,"width":133,"height":10}},{"id":"2aa9f800-19b4-4543-9565-be16d18ee31e","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low credit risk. The capacity for payment of","page_number":371,"box":{"x":45,"y":700,"width":878,"height":13}},{"id":"c5b5f144-1c2d-427e-98cf-835708eb0652","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to","page_number":371,"box":{"x":197,"y":714,"width":720,"height":13}},{"id":"b50d2d03-15af-4044-8eef-4fba79022c9d","block_type":"box","text":"adverse business or economic conditions than is the case for higher ratings.","page_number":371,"box":{"x":197,"y":729,"width":543,"height":12}},{"id":"e0a305f7-2dd1-4683-a158-22c8f17b0c2c","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of credit risk are currently low. The","page_number":371,"box":{"x":46,"y":748,"width":861,"height":13}},{"id":"91dd4ba2-00d8-4303-8722-3dc26687587d","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":371,"box":{"x":197,"y":762,"width":689,"height":13}},{"id":"7346a112-dc51-4433-bbbd-bc764d86539d","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":371,"box":{"x":197,"y":776,"width":434,"height":13}},{"id":"fe7765cd-f2c5-4e1b-ab91-e766385e8ae9","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to credit risk, particularly in the event of","page_number":371,"box":{"x":46,"y":796,"width":871,"height":13}},{"id":"43b06443-f5f3-42d6-af2c-4c1942f97fc6","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":371,"box":{"x":197,"y":810,"width":675,"height":13}},{"id":"b6a4dac7-83d7-450f-810a-c9147640fbfd","block_type":"box","text":"alternatives may be available to allow financial commitments to be met.","page_number":371,"box":{"x":197,"y":824,"width":521,"height":13}},{"id":"9474cd0b-1163-46f4-93bb-c843112ecfec","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material credit risk is present.","page_number":371,"box":{"x":46,"y":844,"width":684,"height":12}},{"id":"a5ac382b-9e8a-408a-aaa6-16227b7b392c","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate that substantial credit risk is present.","page_number":371,"box":{"x":46,"y":863,"width":762,"height":13}},{"id":"5533485c-b4e2-4507-831b-c52c73a73eeb","block_type":"box","text":"A-7","page_number":371,"box":{"x":486,"y":916,"width":27,"height":10}},{"id":"4b0053c5-fb23-43ad-89a9-bdf5216f23b3","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":371,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1dd58966-fa84-43d8-9109-710591f06130","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate very high levels of credit risk.","page_number":372,"box":{"x":46,"y":83,"width":760,"height":12}},{"id":"a7f9bb75-8c4e-49d8-a74c-d3f55fe9f7cc","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ indicates exceptionally high levels of credit risk.","page_number":372,"box":{"x":46,"y":102,"width":831,"height":13}},{"id":"f325b3bd-aee4-4323-b64e-b5f92380e5c2","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote relative status","page_number":372,"box":{"x":45,"y":125,"width":898,"height":13}},{"id":"51c8a735-fb2c-4dd7-835f-5a0a97dea1c1","block_type":"box","text":"within major rating categories.","page_number":372,"box":{"x":45,"y":141,"width":213,"height":13}},{"id":"4ca0dec4-c236-4989-9f64-a2dd986c27b6","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific ra","page_number":372,"box":{"x":45,"y":164,"width":448,"height":13}},{"id":"fe0c7886-c309-4965-bbae-1d38462269a9","block_type":"box","text":"ting levels (‘AA+’; ‘AA’; ‘AA–’; each a rating level). Such suffixes","page_number":372,"box":{"x":494,"y":164,"width":447,"height":13}},{"id":"bb77cb81-2553-49bd-a973-ac6c002aa5eb","block_type":"box","text":"are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the short-term rating category of ‘F1’, a ‘+’ may be","page_number":372,"box":{"x":46,"y":180,"width":869,"height":12}},{"id":"3329e14f-7eb2-480c-ba85-ac8275e83d9a","block_type":"box","text":"appended.","page_number":372,"box":{"x":46,"y":195,"width":70,"height":13}},{"id":"886dd17d-fffb-4f92-a8d7-c0a6316bd32d","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":372,"box":{"x":45,"y":223,"width":570,"height":13}},{"id":"cfae3246-8788-4ba4-8f90-2da28cd815b5","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on th","page_number":372,"box":{"x":45,"y":249,"width":451,"height":13}},{"id":"65c9a91b-c9df-4f09-a59b-ce50a6657153","block_type":"box","text":"e short-term vulnerability to default of the rated entity and relates","page_number":372,"box":{"x":497,"y":249,"width":455,"height":13}},{"id":"10e72a64-bb58-4e78-a8f3-c6a2fdab29bf","block_type":"box","text":"to the capacity to meet financial obligations in accordance with th","page_number":372,"box":{"x":45,"y":265,"width":458,"height":13}},{"id":"2f9d79e7-7476-4b34-9060-eeb1b6904ac1","block_type":"box","text":"e documentation governing the relevant obligation. Short-term","page_number":372,"box":{"x":504,"y":265,"width":434,"height":13}},{"id":"79e72055-c054-411b-8559-39195ca475c5","block_type":"box","text":"deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to obligations whose initial maturity is viewed as","page_number":372,"box":{"x":46,"y":280,"width":898,"height":13}},{"id":"dba85bab-182f-469e-be76-491e9014415e","block_type":"box","text":"“short term” based on market convention. Typically, this means up to 13 months for corporate, sovereign, and structured","page_number":372,"box":{"x":47,"y":296,"width":846,"height":13}},{"id":"25a63bb7-567d-4959-9434-2487c65e7a4d","block_type":"box","text":"obligations and up to 36 months for obligations in U.S. public finance markets.","page_number":372,"box":{"x":46,"y":311,"width":548,"height":13}},{"id":"83e135a2-a209-4543-b5d1-44fc6ffc3f15","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":372,"box":{"x":45,"y":335,"width":268,"height":12}},{"id":"f50e418d-193c-4da2-a613-2a5be74fc0ab","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":372,"box":{"x":45,"y":357,"width":870,"height":12}},{"id":"94f4f10d-a740-40ac-a730-55e0e7a6cc6b","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":372,"box":{"x":197,"y":371,"width":708,"height":13}},{"id":"cfe36909-0013-49d8-bb46-97639adbc888","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":372,"box":{"x":45,"y":390,"width":801,"height":13}},{"id":"64fef768-8f4f-4531-afc5-6babc1a13e71","block_type":"box","text":"commitments.","page_number":372,"box":{"x":197,"y":405,"width":101,"height":9}},{"id":"ff9cce47-0063-496a-8bc3-448c9f6c25c9","block_type":"box","text":"F3 Fair Short-Term Credit Quality. 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The Guidelines include “climate and decarbonization”","page_number":373,"box":{"x":117,"y":615,"width":741,"height":12}},{"id":"813cc37c-4f60-41c5-bac1-2d5e27a4f5f3","block_type":"box","text":"guidelines which apply to the Funds listed in Appendix A, if any.","page_number":373,"box":{"x":116,"y":631,"width":477,"height":12}},{"id":"69db8e78-d577-4e20-ab2b-7b44492f7ffb","block_type":"box","text":"BlackRock will cast votes on behalf of each of the Funds covered by this policy on specific proxy","page_number":373,"box":{"x":117,"y":661,"width":714,"height":12}},{"id":"f422d2ff-6cac-422c-994a-562293d97223","block_type":"box","text":"issues in respect of securities held by each such Fund (or may refrain from voting) in accordance with","page_number":373,"box":{"x":117,"y":677,"width":753,"height":12}},{"id":"e6fff4fe-2efd-475c-82ef-17b164623d49","block_type":"box","text":"the Guidelines.","page_number":373,"box":{"x":116,"y":692,"width":110,"height":10}},{"id":"1c601299-007c-4c31-81ac-425df8282ad5","block_type":"box","text":"Conflicts Management","page_number":373,"box":{"x":116,"y":723,"width":179,"height":12}},{"id":"cdad2612-d997-4b31-8414-889c39fb97a2","block_type":"box","text":"BlackRock Active Investment Stewardship (“BAIS”) maintains policies and procedures that seek to","page_number":373,"box":{"x":117,"y":753,"width":729,"height":12}},{"id":"289c86eb-fb55-428b-9f31-97f600d6c8f3","block_type":"box","text":"prevent undue influence on BlackRock’s proxy voting activity and to mitigate material conflicts of","page_number":373,"box":{"x":117,"y":769,"width":714,"height":12}},{"id":"25637016-5179-447d-b07a-f85e0a5fba4b","block_type":"box","text":"interest in the exercise of proxy voting responsibilities. Potential material conflicts, and the resultant","page_number":373,"box":{"x":117,"y":784,"width":736,"height":12}},{"id":"70b4111f-ab12-40bd-82f5-e2d80bd6c8b7","block_type":"box","text":"potential for undue influence, might be due to a relationship between the investee company (or any","page_number":373,"box":{"x":117,"y":800,"width":734,"height":12}},{"id":"9242b368-93ac-4e15-9c65-5369150dcd10","block_type":"box","text":"shareholder proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates or employees,","page_number":373,"box":{"x":116,"y":815,"width":752,"height":12}},{"id":"8fcf38d2-d910-4bdc-afea-e43ced07c672","block_type":"box","text":"or a Fund or a Fund’s affiliates. BlackRock has taken certain steps to mitigate potential conflicts, which","page_number":373,"box":{"x":116,"y":831,"width":767,"height":12}},{"id":"1c6ecca1-38f1-4527-a6ad-91a93b4b2b90","block_type":"box","text":"are outlined in detail in the Guidelines. In mitigating conflicts, BAIS will adhere to the Guidelines.","page_number":373,"box":{"x":116,"y":846,"width":719,"height":12}},{"id":"aecd9a37-8d70-46bb-94dc-7fcee9fa3dfb","block_type":"box","text":"BlackRock","page_number":373,"box":{"x":117,"y":878,"width":89,"height":9}},{"id":"c209d600-3d91-4309-9222-e11edab7733e","block_type":"box","text":"Public Page 1 of 3","page_number":373,"box":{"x":488,"y":878,"width":400,"height":12}},{"id":"2df05733-858e-49dd-bd13-0d901e3afb4e","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":373,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"cf671a4a-af40-4f8c-a76b-471be85a2018","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":374,"box":{"x":380,"y":87,"width":508,"height":12}},{"id":"3b8bb72c-010f-4b68-9a1c-1e7f7a91f4a4","block_type":"box","text":"In certain instances, BAIS will engage an independent third-party voting service provider to make proxy","page_number":374,"box":{"x":117,"y":118,"width":770,"height":12}},{"id":"6989b8d0-cda8-49ab-997d-b08908433269","block_type":"box","text":"voting recommendations as a further safeguard to avoid potential conflicts of interest, to satisfy","page_number":374,"box":{"x":116,"y":134,"width":709,"height":12}},{"id":"53e3663d-ff20-42d4-9f21-4c05a336cb91","block_type":"box","text":"regulatory compliance requirements, or as may be otherwise required by applicable law.","page_number":374,"box":{"x":117,"y":149,"width":658,"height":12}},{"id":"40aabee4-73db-4561-97b1-1bac50cf44f8","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be","page_number":374,"box":{"x":116,"y":180,"width":765,"height":12}},{"id":"9db8dbde-38a0-474b-a57c-921ff14723d5","block_type":"box","text":"voted and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary","page_number":374,"box":{"x":116,"y":196,"width":727,"height":12}},{"id":"74e2d879-eab9-45f3-a17c-e44db86e320d","block_type":"box","text":"responsibility to act in clients’ financial interests. The Guidelines set forth BlackRock’s approach to","page_number":374,"box":{"x":117,"y":211,"width":733,"height":12}},{"id":"8d87d4d2-94f4-4582-a4d9-00a26c8ff99b","block_type":"box","text":"recalling securities on loan in connection with proxy voting.","page_number":374,"box":{"x":117,"y":227,"width":440,"height":12}},{"id":"8c7a26d0-94b6-40df-9479-489e34e7b877","block_type":"box","text":"Reports to the Board","page_number":374,"box":{"x":117,"y":258,"width":171,"height":11}},{"id":"f5d6c60f-075e-4d76-bffd-55defcaf749f","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process","page_number":374,"box":{"x":117,"y":289,"width":767,"height":12}},{"id":"da845e41-2ceb-4522-878f-2fc049ef96c9","block_type":"box","text":"as applicable to the Funds covered by this policy in the preceding year together with a 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We aim to be constructive investors and are","page_number":379,"box":{"x":117,"y":599,"width":717,"height":12}},{"id":"61ed61dc-7020-44ee-a581-b6a4857036b0","block_type":"box","text":"generally supportive of management teams that have a track record of financial value creation. We aim","page_number":379,"box":{"x":116,"y":614,"width":770,"height":12}},{"id":"bc237fe8-8942-4145-9345-9803aeca26fb","block_type":"box","text":"to build and maintain strong relationships with company leadership based on open dialogue and","page_number":379,"box":{"x":116,"y":630,"width":717,"height":12}},{"id":"6a853fb9-f521-4baf-a45e-43e7d081c811","block_type":"box","text":"mutual respect.","page_number":379,"box":{"x":117,"y":645,"width":118,"height":12}},{"id":"19f50581-c843-4b73-a1db-3d7e991ee204","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the","page_number":379,"box":{"x":117,"y":676,"width":744,"height":12}},{"id":"031a0844-a76d-4d52-8789-a5f4650f783e","block_type":"box","text":"latitude each portfolio manager has to make independent voting decisions on their holdings. For","page_number":379,"box":{"x":117,"y":692,"width":711,"height":12}},{"id":"b47124b1-152d-4a19-a023-b06787ed083c","block_type":"box","text":"example, BAIS will generally vote the holdings in Systematic Active Equity portfolios in accordance","page_number":379,"box":{"x":116,"y":707,"width":732,"height":12}},{"id":"43aabac1-28a8-43ff-95e1-8007df7e1af1","block_type":"box","text":"with these guidelines. We provide voting recommendations to fundamental equity portfolio managers,","page_number":379,"box":{"x":116,"y":723,"width":751,"height":12}},{"id":"b4be63bb-8fdb-4928-ba12-cddcbd95c7d9","block_type":"box","text":"who may determine to vote differently based on each portfolio’s investment objectives and strategy.","page_number":379,"box":{"x":116,"y":738,"width":737,"height":12}},{"id":"ba89adc0-f613-40bf-8883-da45f62bc92f","block_type":"box","text":"3","page_number":379,"box":{"x":143,"y":841,"width":4,"height":5}},{"id":"c349387f-8ef7-4f0e-88c6-f0a4734cfc5f","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":379,"box":{"x":170,"y":841,"width":660,"height":9}},{"id":"d7762874-a835-4e45-be25-f5e3439a0e64","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":379,"box":{"x":170,"y":854,"width":695,"height":9}},{"id":"28a2312b-90e9-4c6a-bc01-1c8ee3060f89","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the effect,","page_number":379,"box":{"x":170,"y":867,"width":707,"height":9}},{"id":"314527f9-2363-495b-9510-a612258a79cd","block_type":"box","text":"of changing or influencing control of the company.","page_number":379,"box":{"x":170,"y":880,"width":295,"height":9}},{"id":"082bdd12-b961-4dc7-8532-9c1cfdf9153d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":379,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"4ee0fd44-b3dc-4b79-9d55-b57a2fee88ed","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":379,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"69f0e592-d376-440b-babc-371c71b834e8","block_type":"box","text":"4","page_number":379,"box":{"x":874,"y":909,"width":9,"height":9}},{"id":"e7119f92-345a-4da0-b17a-a6e17fd3445f","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":379,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"dfd90df3-bbc6-40a4-8fb9-17df39e70cce","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":380,"box":{"x":116,"y":87,"width":755,"height":12}},{"id":"71ff442c-3e5d-4ab9-9e83-af0d515248b9","block_type":"box","text":"management teams and board directors","page_number":380,"box":{"x":117,"y":103,"width":297,"height":12}},{"id":"566c4107-1b0c-4337-8928-7770252c6e18","block_type":"box","text":"4","page_number":380,"box":{"x":414,"y":103,"width":6,"height":6}},{"id":"97d06cc4-707f-4898-8e69-5614e6fcd86d","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We","page_number":380,"box":{"x":424,"y":103,"width":461,"height":12}},{"id":"1dc930c9-1395-4e88-af32-0170dad6a39d","block_type":"box","text":"recognize that accepted corporate governance norms can differ across markets, and believe these","page_number":380,"box":{"x":117,"y":118,"width":736,"height":12}},{"id":"0b2cf734-0b10-4205-abce-0948173ebaab","block_type":"box","text":"guidelines represent globally applicable elements of governance that support a company’s ability to","page_number":380,"box":{"x":116,"y":134,"width":741,"height":12}},{"id":"43a276aa-813f-488c-8779-bd7419f3eb89","block_type":"box","text":"manage material risks and opportunities and deliver financial returns to investors. Generally, we","page_number":380,"box":{"x":117,"y":149,"width":715,"height":12}},{"id":"38542010-190b-418c-ab95-0c0866738d17","block_type":"box","text":"believe companies should observe accepted corporate governance norms within their local markets or,","page_number":380,"box":{"x":117,"y":165,"width":768,"height":12}},{"id":"195dd068-25a8-4bdb-a8b4-9cc61cd59dbb","block_type":"box","text":"particularly in markets without well-established norms, aspire to widely recognized international best","page_number":380,"box":{"x":117,"y":180,"width":746,"height":12}},{"id":"8d5d961f-33d3-437a-828b-b0276f9c89e6","block_type":"box","text":"practices. As one of many minority shareholders, BlackRock cannot — and does not try to — direct a","page_number":380,"box":{"x":117,"y":196,"width":754,"height":12}},{"id":"1dcf816b-b520-4514-902b-ebc66b0cdb99","block_type":"box","text":"company’s strategy or its implementation. We look to companies to provide disclosures that explain","page_number":380,"box":{"x":116,"y":211,"width":743,"height":12}},{"id":"34ec76dd-ebef-4ec2-a352-77d10bcbab09","block_type":"box","text":"how their approach to corporate governance best aligns with the financial interests of their investors.","page_number":380,"box":{"x":117,"y":227,"width":749,"height":12}},{"id":"8405376f-0188-40c1-939e-0a61e26988eb","block_type":"box","text":"Our approach to stewardship within active equities","page_number":380,"box":{"x":296,"y":258,"width":412,"height":11}},{"id":"543fab6f-9e82-4d2c-9f36-5b921496b277","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of","page_number":380,"box":{"x":116,"y":289,"width":713,"height":12}},{"id":"cb619c38-ef93-47f9-90d2-47b8bcf72fb6","block_type":"box","text":"corporate governance. The voting rights attached to clients’ holdings are an important mechanism for","page_number":380,"box":{"x":116,"y":304,"width":756,"height":12}},{"id":"f2ff09a2-f636-44db-bd0a-011526601898","block_type":"box","text":"investors to express support for, or concern about, a company’s performance. As a fiduciary,","page_number":380,"box":{"x":117,"y":320,"width":692,"height":12}},{"id":"abdc9df0-2e19-4c69-b890-71f929ac5bc0","block_type":"box","text":"BlackRock is legally required to make proxy voting determinations, on behalf of clients who have","page_number":380,"box":{"x":117,"y":335,"width":720,"height":12}},{"id":"c7dc2358-d355-4020-b328-8e19a42bad32","block_type":"box","text":"delegated voting authority to us, in a manner consistent with BlackRock’s contractual arrangements","page_number":380,"box":{"x":116,"y":351,"width":743,"height":12}},{"id":"cc14b6cd-b3b7-4f9a-aed3-61ec8ae26a20","block_type":"box","text":"with clients and funds.","page_number":380,"box":{"x":116,"y":366,"width":170,"height":10}},{"id":"86b3a374-9355-46d7-9b12-d54a826384ac","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As","page_number":380,"box":{"x":117,"y":397,"width":740,"height":12}},{"id":"99f9b6bd-c00d-4a3f-bbd7-b91ea7faba5d","block_type":"box","text":"indicated below, we may vote against management recommendations when we have concerns about","page_number":380,"box":{"x":117,"y":413,"width":755,"height":12}},{"id":"3f7b9e5d-7477-4ce8-882d-61a81e665bd0","block_type":"box","text":"how companies are serving the financial interests of our clients as their shareholders. BAIS takes a","page_number":380,"box":{"x":117,"y":428,"width":740,"height":12}},{"id":"2cc3ade7-7e4e-4eed-8e47-039a12df0875","block_type":"box","text":"globally consistent approach to voting but considers the different corporate governance regulations and","page_number":380,"box":{"x":116,"y":444,"width":772,"height":12}},{"id":"4225cdf6-2301-45b2-bfb9-60a27abb819c","block_type":"box","text":"norms across markets. Votes are determined on a case-by-case basis, in the context of a company’s","page_number":380,"box":{"x":117,"y":459,"width":753,"height":12}},{"id":"4c5c0d96-096f-4a80-bf07-c18e64e5258b","block_type":"box","text":"situation and the investment mandate we have from clients. Please see page 19 for more information","page_number":380,"box":{"x":116,"y":475,"width":756,"height":12}},{"id":"e8102410-2379-4f4f-b47e-c951de9bfbf3","block_type":"box","text":"about how we fulfill and oversee our investment stewardship responsibilities for BlackRock’s non-index","page_number":380,"box":{"x":116,"y":490,"width":768,"height":12}},{"id":"bf9a35d3-6442-437d-859f-151073498e8d","block_type":"box","text":"equity strategies.","page_number":380,"box":{"x":116,"y":506,"width":125,"height":12}},{"id":"aa343cee-d68c-45d5-adb7-c23d7b828006","block_type":"box","text":"5","page_number":380,"box":{"x":243,"y":506,"width":6,"height":6}},{"id":"3b800a65-dde5-47de-9ee1-4ff9753c7310","block_type":"box","text":"Our approach to stewardship within fixed income","page_number":380,"box":{"x":303,"y":537,"width":399,"height":12}},{"id":"dce741db-8efe-4f12-8ad4-4e8655296985","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer","page_number":380,"box":{"x":116,"y":568,"width":695,"height":12}},{"id":"cad3b8a7-7f6a-4849-b279-ef89904d69ea","block_type":"box","text":"engagement is a component of fixed income investment strategies at BlackRock, particularly for those","page_number":380,"box":{"x":116,"y":583,"width":762,"height":12}},{"id":"60ecb15c-b099-40fe-a6d5-3dd8622a53d1","block_type":"box","text":"with sustainability objectives in addition to financial objectives. Most corporate governance-related","page_number":380,"box":{"x":116,"y":599,"width":732,"height":12}},{"id":"9760a1a3-518a-47e4-b8c4-64a0b5b3dbfd","block_type":"box","text":"fixed income engagements are undertaken in conjunction with the active investment stewardship team,","page_number":380,"box":{"x":116,"y":614,"width":770,"height":12}},{"id":"a32aadf0-fba9-45aa-9557-4d661e5ffa1f","block_type":"box","text":"and often active equity investors. In addition to the topics listed below, engagement with fixed income","page_number":380,"box":{"x":116,"y":630,"width":757,"height":12}},{"id":"98386845-c107-46ea-baad-fa5b200b8ad5","block_type":"box","text":"investment teams may help inform an issuer’s approach to structuring specialist issuances and the","page_number":380,"box":{"x":117,"y":645,"width":736,"height":12}},{"id":"bec241a6-ccff-43ab-a75a-83332b0418f0","block_type":"box","text":"standard terms and information in bond documentation.","page_number":380,"box":{"x":116,"y":661,"width":411,"height":9}},{"id":"afaf295c-c0b2-41c5-b11c-0b1ce7e24e65","block_type":"box","text":"4","page_number":380,"box":{"x":143,"y":828,"width":4,"height":5}},{"id":"bb2815c8-db32-46c4-8a80-da44e63e6530","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory boards","page_number":380,"box":{"x":171,"y":828,"width":710,"height":10}},{"id":"8bc51bfd-3752-4af5-901f-2269039c32b6","block_type":"box","text":"and their members, where relevant.","page_number":380,"box":{"x":170,"y":841,"width":210,"height":9}},{"id":"db449c42-973c-4b55-9a5e-b9e96a5ccdd5","block_type":"box","text":"5","page_number":380,"box":{"x":143,"y":854,"width":4,"height":5}},{"id":"261e0bd7-413a-45c9-b1ba-d14bdce06c87","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":380,"box":{"x":171,"y":854,"width":685,"height":9}},{"id":"6908d2de-b201-46f0-98bb-bf83ff500870","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":380,"box":{"x":170,"y":867,"width":678,"height":9}},{"id":"1e1598b0-8b67-47ce-8a1a-a722d5de9c1f","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":380,"box":{"x":170,"y":880,"width":458,"height":9}},{"id":"4b7a8492-f6dd-41a7-9cd3-bcbbb9e53655","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":380,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"ff4c6467-fc4a-4814-9772-b241cbaf6fa2","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":380,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"9ae41b60-1627-4651-a5f2-fa717aae5c28","block_type":"box","text":"5","page_number":380,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"a2287ffc-629a-43a3-94b2-a0c78583145f","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":380,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"6cab350d-c961-4359-aebf-b21d789ee598","block_type":"box","text":"Boards of Directors","page_number":381,"box":{"x":422,"y":87,"width":161,"height":10}},{"id":"5e68a664-d323-40eb-9558-395d831a790e","block_type":"box","text":"Roles and responsibilities","page_number":381,"box":{"x":117,"y":118,"width":212,"height":12}},{"id":"be0f5b61-beec-4904-8c0e-9213049ea983","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board","page_number":381,"box":{"x":116,"y":149,"width":770,"height":12}},{"id":"e4d7e568-6bff-4680-a861-4d642f69ac7e","block_type":"box","text":"of directors that is able to advise and supervise management in an independent and objective","page_number":381,"box":{"x":116,"y":165,"width":700,"height":12}},{"id":"e1798b82-28ab-441e-a131-8f3daee39487","block_type":"box","text":"manner.","page_number":381,"box":{"x":117,"y":183,"width":59,"height":7}},{"id":"c840298e-b714-4541-bcc5-18c58241c922","block_type":"box","text":"6","page_number":381,"box":{"x":178,"y":180,"width":5,"height":6}},{"id":"a4261824-8e37-47ba-8e90-1f8dee37c485","block_type":"box","text":"We look to the board of directors (hereafter the “board”) to have an oversight role in the establishment","page_number":381,"box":{"x":116,"y":211,"width":762,"height":12}},{"id":"85a11666-617d-40f6-87b6-e19ab0411e10","block_type":"box","text":"and realization of a company’s strategy, purpose and culture. These constructs are interdependent","page_number":381,"box":{"x":116,"y":227,"width":738,"height":12}},{"id":"234f26d0-36d3-4394-99b3-13b7a1200c85","block_type":"box","text":"and, when aligned, can better position a company to be resilient in the face of a changing business","page_number":381,"box":{"x":116,"y":242,"width":739,"height":12}},{"id":"d5ce5fbd-01a5-40e7-90e1-a0d23ef81169","block_type":"box","text":"environment, help reduce the risks of corporate or employee misconduct, and attract and retain the","page_number":381,"box":{"x":116,"y":258,"width":740,"height":12}},{"id":"cb3eefb3-2ccc-4130-9e86-b78a1cd0c714","block_type":"box","text":"caliber of workers necessary to deliver financial performance over time.","page_number":381,"box":{"x":116,"y":273,"width":535,"height":12}},{"id":"8258022d-38f4-4ddd-9a91-a3c1aa4aa346","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies","page_number":381,"box":{"x":117,"y":304,"width":754,"height":12}},{"id":"2a5bbdb1-5157-4145-8ecb-819eeceab725","block_type":"box","text":"and procedures are in place to help management meet its strategic objectives within an agreed risk","page_number":381,"box":{"x":116,"y":320,"width":742,"height":12}},{"id":"4a09e785-6750-4f30-b025-de0e4dccc25d","block_type":"box","text":"tolerance.","page_number":381,"box":{"x":116,"y":335,"width":78,"height":10}},{"id":"e5bf959e-faef-412e-ab45-1d97653937ad","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the","page_number":381,"box":{"x":116,"y":366,"width":739,"height":12}},{"id":"1613e72d-0aee-41d0-a514-97e19fd60e43","block_type":"box","text":"chief executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the","page_number":381,"box":{"x":116,"y":382,"width":704,"height":12}},{"id":"de9a9d5a-a4bb-42ec-806e-c343cb63bbee","block_type":"box","text":"performance of the CEO and other key executives, determining executive compensation, ensuring a","page_number":381,"box":{"x":117,"y":397,"width":747,"height":12}},{"id":"ad8ff9f1-bd55-413c-be6f-630d0a8fab28","block_type":"box","text":"rigorous audit, overseeing strategy execution and risk management and engaging with shareholders,","page_number":381,"box":{"x":117,"y":413,"width":753,"height":12}},{"id":"4d22e16e-c235-4967-a698-b0c64cc6b013","block_type":"box","text":"and other stakeholders, as necessary.","page_number":381,"box":{"x":116,"y":428,"width":289,"height":12}},{"id":"dfcb519a-28b3-4f70-9fc7-75c290cca612","block_type":"box","text":"Composition and effectiveness","page_number":381,"box":{"x":116,"y":467,"width":253,"height":12}},{"id":"630efa6f-e907-46de-a699-f5607c15a368","block_type":"box","text":"Appointment process","page_number":381,"box":{"x":116,"y":498,"width":177,"height":12}},{"id":"c3e0bf9a-95a4-42e8-9b1a-a0fcfd97c861","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to","page_number":381,"box":{"x":116,"y":529,"width":708,"height":12}},{"id":"62f0b048-cdc7-4763-bea5-733cf898453e","block_type":"box","text":"ensuring the board is composed of directors with the appropriate mix of skills and experience.","page_number":381,"box":{"x":116,"y":544,"width":700,"height":12}},{"id":"2380057a-b0a7-4dbc-97bc-09d7f3c9ae62","block_type":"box","text":"Generally, the board or a sub-committee determines the general criteria given the company’s","page_number":381,"box":{"x":117,"y":560,"width":695,"height":12}},{"id":"5a015001-3028-44be-873b-a0b1a3ea68ba","block_type":"box","text":"circumstances (e.g., sector, maturity, geographic footprint) and any additional criteria for a specific role","page_number":381,"box":{"x":116,"y":575,"width":767,"height":12}},{"id":"8bab9ca7-90c0-4e59-bce2-2f684c026950","block_type":"box","text":"being filled (e.g., financial expertise, industry track record). To inform the process, we encourage","page_number":381,"box":{"x":117,"y":591,"width":721,"height":12}},{"id":"74fc82cf-64df-4d5c-a3e0-8b75df48e41e","block_type":"box","text":"companies to review the skills and experience of incumbent directors to identify any gaps and whether","page_number":381,"box":{"x":116,"y":606,"width":764,"height":12}},{"id":"a7cbde18-80a7-4496-bbf8-8e35f8151543","block_type":"box","text":"the skills and experience of a director candidate would be additive. We welcome disclosures that","page_number":381,"box":{"x":116,"y":622,"width":722,"height":12}},{"id":"e3b76d55-6d94-4150-84b4-d4e583b23b07","block_type":"box","text":"explain how the board considered different skills and experience to ensure that the directors","page_number":381,"box":{"x":116,"y":637,"width":687,"height":12}},{"id":"35a615ef-c0d1-4e23-8dc1-26b6d22fb5f5","block_type":"box","text":"collectively can be effective in fulfilling their responsibilities. We assess a company’s board","page_number":381,"box":{"x":116,"y":653,"width":678,"height":12}},{"id":"7e35c04e-98b5-4efa-a3e5-70a2ec249d49","block_type":"box","text":"composition against that of its peer group and local market requirements.","page_number":381,"box":{"x":116,"y":668,"width":542,"height":12}},{"id":"279d4639-bfa1-48a2-ab00-800cd749eaa8","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any","page_number":381,"box":{"x":116,"y":699,"width":709,"height":13}},{"id":"1af0c295-09ac-4fdd-b2f9-4e3535962671","block_type":"box","text":"particular board composition in our engagements or voting but seek to understand how well placed a","page_number":381,"box":{"x":117,"y":715,"width":746,"height":12}},{"id":"6d3f2ed1-5958-429e-a148-2c9cdc7cfe54","block_type":"box","text":"board is to act in investors’ interests. We may vote against the election of the most senior independent","page_number":381,"box":{"x":117,"y":730,"width":760,"height":13}},{"id":"ebf0dd44-1fe2-4b2d-a530-615a62961622","block_type":"box","text":"director, or the chair of the relevant committee, where a company has not demonstrated it has an","page_number":381,"box":{"x":116,"y":746,"width":720,"height":12}},{"id":"0d947ba8-11d3-488f-9a4b-d9e8e39d67b3","block_type":"box","text":"appointment process that results in a high functioning board with the appropriate complement of skills","page_number":381,"box":{"x":116,"y":761,"width":753,"height":13}},{"id":"3dd19bbb-4a57-4c2e-a255-b96762574ee3","block_type":"box","text":"and experience amongst the directors to support strong financial performance over time. We may vote","page_number":381,"box":{"x":116,"y":777,"width":759,"height":12}},{"id":"86637cee-f12b-43d1-a4d3-7242cebfa847","block_type":"box","text":"against newly nominated directors who do not seem to have the appropriate skills or experience to","page_number":381,"box":{"x":116,"y":793,"width":731,"height":12}},{"id":"6e85ad46-f0cd-4063-aed7-bf3c627ec770","block_type":"box","text":"contribute to the board’s effectiveness.","page_number":381,"box":{"x":116,"y":808,"width":286,"height":9}},{"id":"fc34f930-aa3f-47f1-a33e-b3d421cf7269","block_type":"box","text":"6","page_number":381,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"847c22fd-4e94-4951-a24e-608d58c21aef","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance principles","page_number":381,"box":{"x":170,"y":867,"width":706,"height":9}},{"id":"48691aca-41c5-4174-8e15-962bd69df9af","block_type":"box","text":"of the US Business Roundtable as examples.","page_number":381,"box":{"x":170,"y":880,"width":268,"height":9}},{"id":"660fd1d7-c521-4d64-8726-4e60d7f8d7f6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":381,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"de571d2a-c9b3-4883-8833-269e1b65e414","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":381,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"e62f2e0c-dc9a-46e4-bb55-e249d2ce4e51","block_type":"box","text":"6","page_number":381,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"ae189409-5ab6-412b-a5c6-24fb8f3ffe1f","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":381,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"91cf494d-f589-4595-8261-1b87963effc2","block_type":"box","text":"Independence","page_number":382,"box":{"x":116,"y":87,"width":118,"height":12}},{"id":"5c6df9e9-4ae9-4c88-a66f-25d6f9078251","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (e.g.,","page_number":382,"box":{"x":117,"y":118,"width":706,"height":12}},{"id":"3f4ac964-353e-4b26-bfa9-16a5d4002411","block_type":"box","text":"government or employees) is of paramount importance to the protection of the interests of minority","page_number":382,"box":{"x":116,"y":134,"width":736,"height":12}},{"id":"1f7da752-2d22-4d1d-af94-d527b600c2f3","block_type":"box","text":"shareholders such as BlackRock’s clients. We consider it good practice for at least half the directors to","page_number":382,"box":{"x":116,"y":149,"width":766,"height":12}},{"id":"2ec3d5fd-7675-4dfd-95a6-5543c94242df","block_type":"box","text":"be independent and free from conflicts of interest or undue influence.","page_number":382,"box":{"x":117,"y":165,"width":510,"height":11}},{"id":"da6ff035-736f-4420-aecd-5c50e8d3c157","block_type":"box","text":"7","page_number":382,"box":{"x":629,"y":165,"width":5,"height":6}},{"id":"7e59b35e-f8f0-440e-85ff-dc18e15ddd63","block_type":"box","text":"This also helps to ensure that","page_number":382,"box":{"x":635,"y":165,"width":229,"height":11}},{"id":"3cbdc571-f7fc-412d-a4be-9bcd955ea6e1","block_type":"box","text":"board committees are composed of a sufficient number of independent directors. Companies domiciled","page_number":382,"box":{"x":117,"y":180,"width":770,"height":12}},{"id":"becb6274-bf20-4808-a0cf-c89ad6fbbe5d","block_type":"box","text":"in markets with a higher threshold for board independence should meet those local requirements.","page_number":382,"box":{"x":117,"y":196,"width":727,"height":12}},{"id":"94e6fbe9-d119-48c9-943f-ebaa37a5ee6a","block_type":"box","text":"We may vote against the election of non-independent directors if the board does not have a sufficient","page_number":382,"box":{"x":116,"y":227,"width":756,"height":12}},{"id":"e814ce61-73d3-48e7-80ce-557f366528cc","block_type":"box","text":"balance of independence. We may also vote against the election of the chair of the committee","page_number":382,"box":{"x":117,"y":242,"width":701,"height":12}},{"id":"c02ca8fd-4dea-4e5d-a0ed-c82b107f6ec6","block_type":"box","text":"responsible for board composition if this is a perennial issue.","page_number":382,"box":{"x":117,"y":258,"width":453,"height":11}},{"id":"05c6b2dd-a0ba-4f37-bfff-04ae671490ee","block_type":"box","text":"Independent board leadership","page_number":382,"box":{"x":116,"y":289,"width":245,"height":11}},{"id":"9560ae1b-a1df-4f81-a489-6afadd78f810","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to","page_number":382,"box":{"x":117,"y":320,"width":718,"height":12}},{"id":"696f315e-66f6-4c73-a8d1-5411512fe4df","block_type":"box","text":"independent board leadership. One is a non-executive, independent chair of the board who is","page_number":382,"box":{"x":117,"y":335,"width":697,"height":12}},{"id":"107b87d2-b43d-4202-926d-cf5bb0d24cfd","block_type":"box","text":"responsible for leading the board in the effective exercise of its duties. The other is a lead or senior","page_number":382,"box":{"x":117,"y":351,"width":738,"height":12}},{"id":"bff7e9b8-93cb-40ae-b806-a76bc733e517","block_type":"box","text":"independent director, who is responsible for coordinating with the other non-executive directors and","page_number":382,"box":{"x":117,"y":366,"width":742,"height":12}},{"id":"6822381e-0704-482e-af3d-4d24d7e553e1","block_type":"box","text":"working closely with the executive chair on the board agenda and other board procedures. In this case,","page_number":382,"box":{"x":116,"y":382,"width":770,"height":12}},{"id":"aac34566-f22a-48ec-91cc-c5613cf25b08","block_type":"box","text":"the executive chair and the lead independent director work together to ensure the board is effectively","page_number":382,"box":{"x":116,"y":397,"width":754,"height":12}},{"id":"9df22d1a-8005-409a-8455-ef96cff318ad","block_type":"box","text":"fulfilling its responsibilities. In our view, the independent leader of the board, and/or the chair of a","page_number":382,"box":{"x":116,"y":413,"width":723,"height":12}},{"id":"fd89a2b9-b111-45c4-9a10-ab71c2597bf7","block_type":"box","text":"relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":382,"box":{"x":117,"y":428,"width":727,"height":12}},{"id":"34eb8809-972d-406a-a840-11c6fd1bc28b","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board","page_number":382,"box":{"x":116,"y":444,"width":691,"height":12}},{"id":"783aa207-a2bb-470d-97ff-0e0e07ab3312","block_type":"box","text":"leadership model and how it serves the interests of shareholders.","page_number":382,"box":{"x":117,"y":459,"width":489,"height":12}},{"id":"9b5c70be-19a2-424f-ae9f-0d5053556709","block_type":"box","text":"We may vote against the election of the chair of the committee responsible for board composition if","page_number":382,"box":{"x":116,"y":490,"width":740,"height":12}},{"id":"f3b2bfee-ca16-48ec-8757-72c44545d645","block_type":"box","text":"there is not an identified independent leader of the board with clear responsibilities for board","page_number":382,"box":{"x":116,"y":506,"width":689,"height":12}},{"id":"b6067ea9-7f4c-4c2d-b911-9050d5378103","block_type":"box","text":"performance. We may vote against the most senior independent director if the board has a policy of","page_number":382,"box":{"x":117,"y":521,"width":744,"height":12}},{"id":"71f946bf-c6ce-47fb-a189-8084c80eb465","block_type":"box","text":"not engaging with shareholders.","page_number":382,"box":{"x":117,"y":537,"width":242,"height":12}},{"id":"1a8d6353-4d6c-4258-b31f-9f69c88a536c","block_type":"box","text":"Tenure and succession","page_number":382,"box":{"x":118,"y":568,"width":189,"height":9}},{"id":"875c552c-6b85-435a-9a91-d3b0b92dbf4b","block_type":"box","text":"In our view, it is good practice for boards to establish the length of time a director would normally be","page_number":382,"box":{"x":117,"y":599,"width":745,"height":12}},{"id":"93c5664f-31eb-4c61-9ffc-45863dbc13b2","block_type":"box","text":"expected to serve, in line with market norms where those exist. We find it helpful when companies","page_number":382,"box":{"x":116,"y":614,"width":733,"height":12}},{"id":"2f10c1bd-43a7-4e5a-89b3-cac616c01587","block_type":"box","text":"disclose their approach to director tenure particularly around the contributions of directors who have","page_number":382,"box":{"x":116,"y":630,"width":745,"height":12}},{"id":"5a7e679c-15f0-4654-891e-181e68cb1a35","block_type":"box","text":"served for longer periods than typically provided for under local practice. In our experience, long","page_number":382,"box":{"x":116,"y":645,"width":718,"height":12}},{"id":"28470eef-cfb3-45fb-afb2-f819e3e32103","block_type":"box","text":"serving directors could become less independent given their long-term relationship with management","page_number":382,"box":{"x":116,"y":661,"width":751,"height":12}},{"id":"7ab0b338-fdd5-462a-aad7-95999fe1b124","block_type":"box","text":"and involvement in past board decisions.","page_number":382,"box":{"x":116,"y":676,"width":302,"height":12}},{"id":"5ced4ba2-285b-403a-ac04-88065105217d","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances","page_number":382,"box":{"x":116,"y":707,"width":750,"height":12}},{"id":"25486e5e-112c-46fd-b551-4b58ce4bfb05","block_type":"box","text":"renewal through the regular introduction of directors with fresh perspectives and expertise with","page_number":382,"box":{"x":117,"y":723,"width":699,"height":12}},{"id":"7b7f8713-0a88-4ed0-a56a-e25e5b8de051","block_type":"box","text":"continuity through the retention of directors with long-term knowledge of the board and company.","page_number":382,"box":{"x":116,"y":738,"width":718,"height":12}},{"id":"00ca14e4-fb01-4471-92ec-d813938603cd","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate","page_number":382,"box":{"x":117,"y":769,"width":675,"height":12}},{"id":"7482477b-77df-4769-8549-73d30d22276b","block_type":"box","text":"governance best practices, we may vote against the election of the chair of the committee responsible","page_number":382,"box":{"x":116,"y":785,"width":757,"height":12}},{"id":"85ac5acc-96f1-4f97-acda-1a5cd32ab8a2","block_type":"box","text":"for board composition if a company does not clearly disclose its approach to director tenure and board","page_number":382,"box":{"x":116,"y":800,"width":757,"height":12}},{"id":"986fb7c6-8c26-4a4e-b972-fbde24ac9e43","block_type":"box","text":"7","page_number":382,"box":{"x":143,"y":828,"width":4,"height":5}},{"id":"49657b7a-9dbf-4eb9-bd7b-fbf750d43fb4","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":382,"box":{"x":170,"y":828,"width":659,"height":10}},{"id":"68bed65a-b278-4064-aaf7-e484238f56a6","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":382,"box":{"x":170,"y":841,"width":659,"height":9}},{"id":"181faf27-d7c1-4f5e-976a-53efa009931b","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which could, or","page_number":382,"box":{"x":170,"y":854,"width":702,"height":9}},{"id":"e2a2f26d-2958-4570-bd0b-b74d44f2acfb","block_type":"box","text":"could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests of the company","page_number":382,"box":{"x":170,"y":867,"width":703,"height":9}},{"id":"b778fb99-9926-4e3f-bd02-c9d19f78f7fb","block_type":"box","text":"and shareholders.","page_number":382,"box":{"x":170,"y":880,"width":106,"height":7}},{"id":"6ae924f1-ad70-4c39-bd17-9a57a3cce9b3","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":382,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"818a17fd-914e-4072-bc94-7f504bc9ee2e","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":382,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"a410033f-5e95-4529-ab1b-c4d7c75b4a9b","block_type":"box","text":"7","page_number":382,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"e0b20fbf-8638-45b3-958c-e728e577f305","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":382,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a0cfb317-e48e-44a2-9906-0871d052cec3","block_type":"box","text":"renewal. We may vote against the election of directors who have served for more years than is typical","page_number":383,"box":{"x":117,"y":87,"width":760,"height":12}},{"id":"b1b7c389-82f6-405b-9844-52829a0ca131","block_type":"box","text":"in markets with specific guidance, where the case for their continued service is not evident.","page_number":383,"box":{"x":117,"y":102,"width":679,"height":13}},{"id":"3802728c-d968-49e8-a87b-d652c9978ca1","block_type":"box","text":"Capacity","page_number":383,"box":{"x":117,"y":134,"width":74,"height":12}},{"id":"ee7a002e-82cb-42c4-8a79-56ace572cdd9","block_type":"box","text":"To be effective and engaged, directors need to have the time and energy to commit to the role. In our","page_number":383,"box":{"x":116,"y":165,"width":757,"height":12}},{"id":"b876e3de-35c1-4411-90d0-f00f5ffba26d","block_type":"box","text":"view, an effective board will assess the ability of its members to maintain an appropriate focus on","page_number":383,"box":{"x":116,"y":180,"width":726,"height":12}},{"id":"072cad29-4e3e-430b-8218-3a9d7e4d4129","block_type":"box","text":"board matters and the company taking into consideration competing responsibilities. We recognize that","page_number":383,"box":{"x":117,"y":196,"width":770,"height":12}},{"id":"1b1509e5-4208-41fc-9b9b-225cb037de3a","block_type":"box","text":"board leadership roles vary across markets in responsibilities and required time commitment but note","page_number":383,"box":{"x":117,"y":211,"width":756,"height":12}},{"id":"db5514ac-2a87-40a8-a48f-83a45ba4569a","block_type":"box","text":"that they are generally more intensive than a standard directorship. We will take local norms and","page_number":383,"box":{"x":116,"y":227,"width":721,"height":12}},{"id":"86a21a37-ea74-4651-b081-ea06949d2f47","block_type":"box","text":"practices into consideration when making our voting determinations across markets.","page_number":383,"box":{"x":117,"y":242,"width":628,"height":12}},{"id":"16b69edf-fa73-451d-9412-f915f2167cdc","block_type":"box","text":"We may vote against the election of directors who do not seem to have sufficient capacity to effectively","page_number":383,"box":{"x":116,"y":273,"width":769,"height":12}},{"id":"af39ed0d-fe43-4c10-9ab8-a0541afb950f","block_type":"box","text":"fulfil their duties to the board and company.","page_number":383,"box":{"x":116,"y":289,"width":326,"height":12}},{"id":"20f2d184-13d8-4ee9-8277-86f0d593f5e4","block_type":"box","text":"Director elections","page_number":383,"box":{"x":116,"y":320,"width":147,"height":9}},{"id":"2d8fd23e-5c0e-43cc-b2ee-6ec603a8299f","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A","page_number":383,"box":{"x":117,"y":351,"width":720,"height":12}},{"id":"b694eceb-5110-4ef9-a4e4-d45f7bfddedd","block_type":"box","text":"classified board structure","page_number":383,"box":{"x":116,"y":366,"width":186,"height":10}},{"id":"848ae132-c9a4-4f02-93f3-82bd7df3f6e6","block_type":"box","text":"8","page_number":383,"box":{"x":303,"y":366,"width":5,"height":6}},{"id":"cbbe1ecc-a53f-4d2e-a602-041919981076","block_type":"box","text":"may be justified by a company when it needs consistency and stability","page_number":383,"box":{"x":309,"y":366,"width":530,"height":12}},{"id":"888331d6-04f6-4bb5-8dc0-e5b4d80c1612","block_type":"box","text":"during a time of transition, or on the basis of its business model (e.g., a non-operating company such","page_number":383,"box":{"x":116,"y":382,"width":754,"height":12}},{"id":"e78a2e96-f869-4a9b-975d-16ab786ecf5d","block_type":"box","text":"as closed-end funds).","page_number":383,"box":{"x":116,"y":397,"width":165,"height":12}},{"id":"5fc4a75a-4659-470c-9cfb-21d7772373bd","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in","page_number":383,"box":{"x":116,"y":428,"width":746,"height":12}},{"id":"4bdf645b-455a-4fd9-8cb4-ba8b09d9679c","block_type":"box","text":"bundled slates. We look to companies to provide sufficient information on each director standing for","page_number":383,"box":{"x":117,"y":444,"width":743,"height":12}},{"id":"e8a97ece-d6b6-494b-8c12-9152247554a8","block_type":"box","text":"election so that shareholders can assess their capabilities and suitability. We will generally not support","page_number":383,"box":{"x":116,"y":459,"width":765,"height":12}},{"id":"a92e7cbf-5553-42ab-a5e3-fcfc77470b24","block_type":"box","text":"the election of directors whose names and biographical details have not been disclosed sufficiently in","page_number":383,"box":{"x":116,"y":475,"width":755,"height":12}},{"id":"0ab6a551-321b-4386-b4d8-41d939d80c3d","block_type":"box","text":"advance of the shareholder meeting.","page_number":383,"box":{"x":116,"y":490,"width":278,"height":12}},{"id":"04d9fb8a-e19a-4556-a0de-5b3f97bbbb64","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at","page_number":383,"box":{"x":117,"y":521,"width":746,"height":12}},{"id":"d77c0963-64dc-47c4-9f7e-131685acc1ae","block_type":"box","text":"the shareholder meeting. Where a company’s practices differ, we look to the board to provide a","page_number":383,"box":{"x":116,"y":537,"width":712,"height":12}},{"id":"c97e663d-f578-4f9f-89d5-e95806ba1abb","block_type":"box","text":"detailed explanation as to how its approach best serves investors’ interests.","page_number":383,"box":{"x":116,"y":552,"width":567,"height":12}},{"id":"c6959da9-e33e-48e8-9c21-d55f86e1421f","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of","page_number":383,"box":{"x":116,"y":583,"width":710,"height":12}},{"id":"5beddd6e-2d22-4937-9156-2b7167baf91b","block_type":"box","text":"directors and/or a simple majority vote standard for director elections. We may vote against all the","page_number":383,"box":{"x":116,"y":599,"width":732,"height":12}},{"id":"f3eb5931-5457-4372-911d-951d2d6733ce","block_type":"box","text":"directors standing for election as part of a single slate if we have concerns about the profile or","page_number":383,"box":{"x":116,"y":614,"width":701,"height":12}},{"id":"c342888b-7fad-417f-b70a-6d386f32d33b","block_type":"box","text":"performance of an individual director.","page_number":383,"box":{"x":117,"y":630,"width":280,"height":12}},{"id":"723f653f-b244-4703-a32c-ce554a4487df","block_type":"box","text":"Committees","page_number":383,"box":{"x":117,"y":661,"width":95,"height":9}},{"id":"5225b437-c1c7-4ef5-ba84-049c4e6f9bdc","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and","page_number":383,"box":{"x":117,"y":692,"width":751,"height":12}},{"id":"35eb0dfd-976f-4ffd-b1af-6116b8c8511a","block_type":"box","text":"risk, governance and human capital, and executive compensation, amongst other matters. We do not","page_number":383,"box":{"x":117,"y":707,"width":751,"height":12}},{"id":"89b06a28-28b0-4e26-8170-8a56df7c7ff0","block_type":"box","text":"prescribe to companies what committees they should establish, but we seek to understand the board’s","page_number":383,"box":{"x":117,"y":723,"width":760,"height":12}},{"id":"7a6f3fd3-d0e5-4292-880a-7e227f12731f","block_type":"box","text":"rationale for the committee structure it determines is appropriate. We note that, in some markets,","page_number":383,"box":{"x":117,"y":738,"width":717,"height":12}},{"id":"8f8ad594-2e53-4148-8ff5-41923b76c8ac","block_type":"box","text":"regulation requires such committees. The responsibilities of each committee should be clear, and the","page_number":383,"box":{"x":117,"y":754,"width":748,"height":12}},{"id":"8bc48053-d1e9-4713-8b5f-10a81f05fa65","block_type":"box","text":"board should ensure that all critical matters are assigned either to the full board or to one of the","page_number":383,"box":{"x":117,"y":769,"width":706,"height":12}},{"id":"4ffec12f-7b1d-4aca-b2c4-9542faeac658","block_type":"box","text":"committees. It is helpful to investor understanding when the board discloses the structure,","page_number":383,"box":{"x":116,"y":785,"width":665,"height":12}},{"id":"8bd3894d-b3ea-4322-a6f9-4a83f6faf12a","block_type":"box","text":"8","page_number":383,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"34434986-47a3-4e07-8a19-422c5da01ddd","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":383,"box":{"x":170,"y":867,"width":673,"height":9}},{"id":"cb7daa90-0914-430e-bd19-0d2aab4a1fe2","block_type":"box","text":"directors stands for election in any one year.","page_number":383,"box":{"x":170,"y":880,"width":262,"height":9}},{"id":"91b7243a-e974-45e8-a5a4-9efbe7aa8f99","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":383,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"822c693e-97fa-45bf-ad87-e521ef5f2b41","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":383,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"4ba3284e-4979-4d47-8bb9-3407bfdb87e6","block_type":"box","text":"8","page_number":383,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"4e45a9b5-6fb7-4431-b036-d11706622ad9","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":383,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3af3ab72-e8b4-4de8-915f-fb671eeec31f","block_type":"box","text":"membership, proportion of independent directors, and responsibilities of each committee. The","page_number":384,"box":{"x":117,"y":87,"width":700,"height":12}},{"id":"a6c7697c-70ac-4052-831a-1cd3eb4fbe87","block_type":"box","text":"responsibilities we typically see assigned to the three most common committees include:","page_number":384,"box":{"x":117,"y":103,"width":662,"height":12}},{"id":"f3b035f7-1ae7-43ae-982a-437c56c3f50f","block_type":"box","text":"• Audit and risk – oversight responsibilities for the integrity of financial reporting, risk","page_number":384,"box":{"x":150,"y":134,"width":650,"height":12}},{"id":"464287fc-a003-4ba1-a29d-06ef8f097af9","block_type":"box","text":"management and compliance with legal and regulatory requirements; may also play an","page_number":384,"box":{"x":184,"y":149,"width":650,"height":12}},{"id":"4093d1c0-bd7d-482b-bb12-53e33479ee88","block_type":"box","text":"oversight role in relation to the internal audit function and whistleblowing mechanisms.","page_number":384,"box":{"x":184,"y":165,"width":643,"height":12}},{"id":"2f8b17cd-a34b-4217-987b-46fe40c8952a","block_type":"box","text":"• Nominating, governance and human capital – oversight responsibilities for corporate","page_number":384,"box":{"x":150,"y":188,"width":664,"height":12}},{"id":"73faa7ec-12f2-41b8-b24a-f8719be82391","block_type":"box","text":"governance principles and practices of the company, including the periodic review of board","page_number":384,"box":{"x":184,"y":203,"width":679,"height":12}},{"id":"b2b56932-6b18-447d-b725-4f68700fadd2","block_type":"box","text":"performance; responsibility for succession planning for CEO and key board roles, as well as","page_number":384,"box":{"x":184,"y":219,"width":687,"height":12}},{"id":"0cddc524-45a7-46fb-93c6-0bc0c1301c34","block_type":"box","text":"the director appointment process; may also have oversight responsibilities for human capital","page_number":384,"box":{"x":183,"y":234,"width":690,"height":12}},{"id":"e75755ad-6b4f-4a35-9d15-c53173bd076a","block_type":"box","text":"management strategies, including corporate culture and purpose.","page_number":384,"box":{"x":184,"y":250,"width":489,"height":12}},{"id":"796f272c-9ab4-4847-b6d0-7e473d768e21","block_type":"box","text":"• Executive compensation – determines the compensation policies and programs for the CEO","page_number":384,"box":{"x":150,"y":273,"width":723,"height":12}},{"id":"2cafd776-9b27-487a-afe5-20f689425f6a","block_type":"box","text":"and other executive officers, approves annual awards and payments under the policies; may","page_number":384,"box":{"x":184,"y":289,"width":690,"height":12}},{"id":"2ee8490f-a789-4c51-b3e8-496475a7ba60","block_type":"box","text":"also have oversight responsibilities for firm-wide compensation policies.","page_number":384,"box":{"x":184,"y":304,"width":536,"height":12}},{"id":"bbf98d6c-365b-4677-adc6-f2825512bdbf","block_type":"box","text":"We may vote against the election of the chair of the committee or other directors serving as committee","page_number":384,"box":{"x":116,"y":335,"width":765,"height":12}},{"id":"274843ca-06d1-4289-9593-6f809d6c8c26","block_type":"box","text":"members to convey concerns about how a committee has undertaken its responsibilities. We may vote","page_number":384,"box":{"x":117,"y":351,"width":767,"height":12}},{"id":"18c227d2-7104-4f26-8c09-22e2e6830ef1","block_type":"box","text":"against the election of the most senior non-executive director if there is not a clearly disclosed","page_number":384,"box":{"x":116,"y":366,"width":702,"height":12}},{"id":"9cc3248b-32b3-4dd7-97b7-82a39fbda5d6","block_type":"box","text":"approach to board committees.","page_number":384,"box":{"x":116,"y":382,"width":236,"height":12}},{"id":"be3ec2f0-c29d-45d4-98df-23c29d838d62","block_type":"box","text":"Board and director evaluation","page_number":384,"box":{"x":116,"y":413,"width":243,"height":9}},{"id":"9c1bb2e0-4a26-4339-8542-d03ca899aca3","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the","page_number":384,"box":{"x":116,"y":444,"width":729,"height":12}},{"id":"30c415f7-efaf-4d09-9114-661201be76f3","block_type":"box","text":"board, the committees, the chair and individual directors. Periodically, this review could be undertaken","page_number":384,"box":{"x":117,"y":459,"width":762,"height":12}},{"id":"45cb09ad-a4fb-4507-a016-1e1fe6f147c9","block_type":"box","text":"by an independent third party able to bring objective perspectives to the board on governance and","page_number":384,"box":{"x":117,"y":475,"width":732,"height":12}},{"id":"83d530d8-3974-4818-883b-18754b68de95","block_type":"box","text":"performance. We encourage companies to disclose their approach to and the objectives of","page_number":384,"box":{"x":117,"y":490,"width":677,"height":12}},{"id":"e50d4557-e425-4f99-b24d-89bd95c9144f","block_type":"box","text":"evaluations, including any changes made to the board’s approach as a result.","page_number":384,"box":{"x":116,"y":506,"width":581,"height":12}},{"id":"f8841e0e-a0cd-49d5-ac0c-3b50acc33f6f","block_type":"box","text":"Access to independent advice","page_number":384,"box":{"x":116,"y":537,"width":246,"height":12}},{"id":"b5995cb9-6679-47b6-81f9-470b3be4e16d","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they","page_number":384,"box":{"x":116,"y":568,"width":723,"height":12}},{"id":"fccdb409-bd12-4c23-8420-56cd23bd9afc","block_type":"box","text":"should have access to independent advice. In certain circumstances, it may be helpful to boards to","page_number":384,"box":{"x":116,"y":583,"width":738,"height":12}},{"id":"58452398-acab-4f23-a400-3fa38f259923","block_type":"box","text":"retain independent third parties to advise on critical matters. These might include new industry","page_number":384,"box":{"x":117,"y":599,"width":703,"height":12}},{"id":"2b9b730e-3712-4b1a-b09a-5ccbc2c033bf","block_type":"box","text":"developments such as emergent and disruptive technology, operating events with material","page_number":384,"box":{"x":116,"y":614,"width":676,"height":12}},{"id":"a9f82b90-3fdd-4214-a5ce-e1f5b4fdee83","block_type":"box","text":"consequences for the company’s reputation and/or performance, or significant transactions. Board","page_number":384,"box":{"x":116,"y":630,"width":735,"height":12}},{"id":"a5a5713c-8c0a-4358-baa1-cd69edc15c95","block_type":"box","text":"committees may similarly retain third parties to advise them on specialist matters such as audit,","page_number":384,"box":{"x":116,"y":645,"width":713,"height":12}},{"id":"8d86b70c-a6b6-42d9-a273-fa280bdac2fe","block_type":"box","text":"compensation and succession planning.","page_number":384,"box":{"x":116,"y":661,"width":297,"height":12}},{"id":"3985b2a5-e2e5-41a5-8a68-dfd308485d5f","block_type":"box","text":"Executive compensation","page_number":384,"box":{"x":402,"y":692,"width":195,"height":12}},{"id":"fd5152e9-a4a7-4b14-8642-f8dbd4a7a665","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to","page_number":384,"box":{"x":117,"y":723,"width":755,"height":12}},{"id":"4847c2a7-b15a-4f55-be73-8364d6ec6af3","block_type":"box","text":"recruit, retain and reward the caliber of executive management necessary to lead and operate the","page_number":384,"box":{"x":117,"y":738,"width":724,"height":12}},{"id":"f337e8d1-187d-480d-b7a0-41ffad7fb70d","block_type":"box","text":"company to deliver superior financial returns over time. We focus on alignment between variable pay","page_number":384,"box":{"x":116,"y":754,"width":748,"height":12}},{"id":"5ac15973-c11b-4190-ab63-55d8735959ba","block_type":"box","text":"and a company’s financial performance.","page_number":384,"box":{"x":116,"y":769,"width":296,"height":12}},{"id":"24ed507a-8ef1-4ac7-8ed1-c7039233909a","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus","page_number":384,"box":{"x":117,"y":800,"width":746,"height":12}},{"id":"4ad28df3-098b-4022-8856-db3edbdda317","block_type":"box","text":"that rewards performance against short-term metrics, incentives — most often share-based- that","page_number":384,"box":{"x":116,"y":816,"width":717,"height":12}},{"id":"0ce36cdf-cf61-4a25-9df8-ba95c45135e4","block_type":"box","text":"reward performance against long-term metrics, and pensions and benefits. In our observation, base","page_number":384,"box":{"x":117,"y":831,"width":744,"height":12}},{"id":"8304f7a8-3c32-406a-bdaa-c56bb1fbcddd","block_type":"box","text":"salary, pensions and benefits are largely set relative to market norms and benchmarks. The annual","page_number":384,"box":{"x":116,"y":847,"width":741,"height":12}},{"id":"3904abd6-41fd-46c2-ac1d-9d31c82d6834","block_type":"box","text":"bonus and share-based incentive, or variable pay plans, tend to be tailored to the company, its sector","page_number":384,"box":{"x":117,"y":862,"width":757,"height":12}},{"id":"02ed527d-f056-49cf-a3a7-86f1360623f1","block_type":"box","text":"and long-term strategy, as well as the individuals the board is seeking to recruit and motivate.","page_number":384,"box":{"x":116,"y":878,"width":699,"height":12}},{"id":"524a4001-bcdb-4e4a-b2f5-b8efd49154f3","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":384,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"37969d5b-a7ea-45f4-8023-a8eb3e7ef39f","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":384,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"b981c5a9-5fba-4c9a-8207-61c681a08b97","block_type":"box","text":"9","page_number":384,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"cae593c5-15f2-4c3e-ac8a-35bc29d54055","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":384,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"883b7f27-b4dc-401b-ba2b-63c6fb68743d","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a","page_number":385,"box":{"x":117,"y":87,"width":693,"height":12}},{"id":"caf26c68-0867-4083-89b3-b8aff39618ab","block_type":"box","text":"company’s approach to executive compensation on a case-by-case basis. We rely on companies","page_number":385,"box":{"x":116,"y":103,"width":726,"height":12}},{"id":"549ffb0b-8193-41b8-879f-df93fcd05561","block_type":"box","text":"providing sufficient quantitative and qualitative information in their disclosures to enable shareholders","page_number":385,"box":{"x":117,"y":118,"width":754,"height":12}},{"id":"86688d6b-74c2-4670-ab2e-3ab338184b97","block_type":"box","text":"to understand the compensation arrangements and assess the alignment with investors’ interests.","page_number":385,"box":{"x":116,"y":134,"width":732,"height":12}},{"id":"fa0bb374-14f9-473f-a62c-26c09164f760","block_type":"box","text":"Features we look for in compensation arrangements include:","page_number":385,"box":{"x":117,"y":149,"width":454,"height":12}},{"id":"ca02ecd5-55bb-4861-baa9-7147d0b3f04b","block_type":"box","text":"• Fixed pay components, including base salary, benefits and prerequisites that are appropriate","page_number":385,"box":{"x":150,"y":180,"width":727,"height":12}},{"id":"18f761a1-ca01-4050-868a-cd6bb70e59b5","block_type":"box","text":"in the context of the company’s size, sector and market.","page_number":385,"box":{"x":184,"y":196,"width":419,"height":12}},{"id":"c298bdf3-58c8-4a03-b72f-ceb2ed305d8d","block_type":"box","text":"• Variable pay subject to performance metrics that are closely linked to the company’s short","page_number":385,"box":{"x":150,"y":219,"width":707,"height":12}},{"id":"f930c171-78ff-4251-8051-eca515ab39a8","block_type":"box","text":"and long-term strategic objectives.","page_number":385,"box":{"x":184,"y":234,"width":260,"height":12}},{"id":"cc78d847-86c5-492e-a551-8bb33445bc58","block_type":"box","text":"• Long-term incentives that motivate sustained performance across a multi-year period.","page_number":385,"box":{"x":150,"y":258,"width":674,"height":12}},{"id":"7610edc6-57a9-4d44-a3f5-99bbbc76bea6","block_type":"box","text":"• A balance between fixed and variable pay, short- and long-term incentives, and specific","page_number":385,"box":{"x":150,"y":281,"width":688,"height":12}},{"id":"f81930ee-5e2b-4e14-8cc3-8a3cb614c19c","block_type":"box","text":"instruments (cash and equity awards) that promotes pay program durability and seldom","page_number":385,"box":{"x":184,"y":296,"width":654,"height":12}},{"id":"c3ada6e7-d19e-48cf-8838-8a72e749e34a","block_type":"box","text":"necessitates one-off, discretionary payments.","page_number":385,"box":{"x":184,"y":312,"width":342,"height":12}},{"id":"20153926-73e3-431a-90be-14f29695dfc5","block_type":"box","text":"• Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":385,"box":{"x":150,"y":335,"width":720,"height":12}},{"id":"06e96c16-657e-4fd1-90b8-a92c2b3ae9d5","block_type":"box","text":"• Board discretion, if allowed within the variable pay arrangements, to be used sparingly,","page_number":385,"box":{"x":150,"y":358,"width":683,"height":12}},{"id":"fefd848e-9f32-4453-8aaa-d85fdfc2c31d","block_type":"box","text":"responsibly and transparently.","page_number":385,"box":{"x":184,"y":374,"width":228,"height":12}},{"id":"4b144c61-1a89-4411-ab15-dd64ea03b854","block_type":"box","text":"• A requirement, that participants in long-term share-based incentive plans build a meaningful","page_number":385,"box":{"x":150,"y":397,"width":721,"height":12}},{"id":"704ce0fa-ddfe-474c-8efc-95c88cfba84d","block_type":"box","text":"shareholding in the company within a defined time period, as determined by the board or","page_number":385,"box":{"x":184,"y":413,"width":662,"height":12}},{"id":"5ae4003b-78b5-4ea2-bad4-ac8da36935f2","block_type":"box","text":"relevant board committee.","page_number":385,"box":{"x":184,"y":428,"width":198,"height":10}},{"id":"5e837b4a-d46b-4330-91a0-eb7f57e0c7d1","block_type":"box","text":"• Change of control provisions that appropriately balance the interests of executives and","page_number":385,"box":{"x":150,"y":451,"width":681,"height":12}},{"id":"d2502475-d06d-4184-a6e0-2d5d9a6d3fbf","block_type":"box","text":"shareholders.","page_number":385,"box":{"x":184,"y":467,"width":106,"height":9}},{"id":"f40ba760-40e8-4710-867d-2bda1438d93d","block_type":"box","text":"• Clawback or malus provisions that allow the company to recoup or hold back variable","page_number":385,"box":{"x":150,"y":490,"width":672,"height":12}},{"id":"3322e836-9e3f-4e92-8026-97527978d561","block_type":"box","text":"compensation from individuals whose awards were based on fraudulent activities, misstated","page_number":385,"box":{"x":184,"y":506,"width":687,"height":12}},{"id":"8f486698-95e3-42be-ae69-e75b2f97de71","block_type":"box","text":"financial reports, or executive misconduct.","page_number":385,"box":{"x":183,"y":521,"width":318,"height":12}},{"id":"370a71f2-f07e-494c-8289-257ebcbf4d68","block_type":"box","text":"• Severance arrangements that protect the company’s interests but do not cost more than is","page_number":385,"box":{"x":150,"y":544,"width":710,"height":12}},{"id":"162cd3ab-b24d-4896-ba24-da134ff59674","block_type":"box","text":"contractual.","page_number":385,"box":{"x":184,"y":560,"width":91,"height":9}},{"id":"7d3e7f31-d364-45f8-831c-25471731efea","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or","page_number":385,"box":{"x":116,"y":591,"width":757,"height":12}},{"id":"923691ea-528e-4e43-a6e1-1e19118f9a89","block_type":"box","text":"plans, or approve the compensation report where we do not see alignment between executive","page_number":385,"box":{"x":117,"y":607,"width":701,"height":11}},{"id":"0f69e33f-aa6a-4c9e-8900-48bab7924d2a","block_type":"box","text":"compensation arrangements and our clients’ financial interests. When there is not an alternative, or","page_number":385,"box":{"x":116,"y":622,"width":742,"height":12}},{"id":"5d36f242-cae0-45e3-bfa8-d02f5a4b2805","block_type":"box","text":"where there have been multi-year issues with compensation misaligned with performance, we may","page_number":385,"box":{"x":116,"y":637,"width":738,"height":12}},{"id":"99de02d5-4aac-4aa6-abab-b88299444dbb","block_type":"box","text":"vote against the election of the chair of the responsible committee, or the most senior independent","page_number":385,"box":{"x":116,"y":653,"width":735,"height":12}},{"id":"ec90df84-13bf-465b-ba77-ba4eb5f9e51a","block_type":"box","text":"director.","page_number":385,"box":{"x":116,"y":669,"width":59,"height":9}},{"id":"38a432cb-fdc2-494e-96ac-33a108ce11c5","block_type":"box","text":"Non-executive director compensation","page_number":385,"box":{"x":350,"y":700,"width":299,"height":11}},{"id":"9a9f74fe-a4e4-44db-8b84-8c3f20248f71","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a","page_number":385,"box":{"x":117,"y":730,"width":706,"height":13}},{"id":"ef35ac31-30b4-4ddf-987c-dd98b8ed7363","block_type":"box","text":"combination of the two. Some companies also pay additional fees for service on board committees or","page_number":385,"box":{"x":116,"y":746,"width":752,"height":12}},{"id":"26e3979c-b9f9-4ce6-ab94-6de05bbd01df","block_type":"box","text":"in board leadership roles. We do not support non-executive directors participating in performance","page_number":385,"box":{"x":117,"y":761,"width":726,"height":13}},{"id":"667b607a-2207-4eb7-8a31-82969209d093","block_type":"box","text":"based incentive plans as doing so may create a conflict of interest and undermine their independence","page_number":385,"box":{"x":117,"y":777,"width":753,"height":12}},{"id":"17f1e265-4cdc-42c5-98e3-e40999ef1d9e","block_type":"box","text":"from management, whom they oversee.","page_number":385,"box":{"x":116,"y":792,"width":295,"height":13}},{"id":"2db4746c-59ac-4708-b120-ba2711e7e37b","block_type":"box","text":"Capital structure","page_number":385,"box":{"x":433,"y":823,"width":133,"height":12}},{"id":"56de962e-a5ee-44b9-b7a0-620691ebff9c","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that","page_number":385,"box":{"x":117,"y":854,"width":765,"height":13}},{"id":"a7e9761d-42d9-4d77-b872-a08602b3ab62","block_type":"box","text":"achieves appropriate capital allocation in support of long-term financial resilience.","page_number":385,"box":{"x":116,"y":870,"width":610,"height":12}},{"id":"e7e46241-3e94-4858-9522-5e0cb6dc1ca4","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":385,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"dd5e100c-3a3f-4a99-83a3-7b26940ffd51","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":385,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"011b837b-c9ec-427b-894b-f7d60bdfdff7","block_type":"box","text":"10","page_number":385,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"7c6c5afe-7c58-4cef-83a2-fb5b401eb91b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":385,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"720cd254-e3cf-4a79-bd90-c06ee06748c2","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why","page_number":386,"box":{"x":116,"y":87,"width":743,"height":12}},{"id":"c1e2eeb0-9521-48bf-89bf-31eb50d9056a","block_type":"box","text":"they view these practices to be aligned with shareholders’ interests. We may vote against management","page_number":386,"box":{"x":116,"y":103,"width":772,"height":12}},{"id":"58347d6d-a651-4c71-8d34-baa38818b0e1","block_type":"box","text":"proposals seeking capital-related authorities, or the election of the most senior independent director, if","page_number":386,"box":{"x":117,"y":118,"width":761,"height":12}},{"id":"b1b5d7d1-6de1-4e4e-81a5-f2192b397613","block_type":"box","text":"we have concerns about a company’s approach. We may also support a shareholder proposal seeking","page_number":386,"box":{"x":116,"y":134,"width":768,"height":12}},{"id":"77df715a-ddca-48ae-9155-53f59cd3acab","block_type":"box","text":"conversion of shares with differentiated voting rights to a one-share, one-vote standard.","page_number":386,"box":{"x":116,"y":149,"width":655,"height":12}},{"id":"3696047b-7972-42c1-9b15-76f0b15789e9","block_type":"box","text":"Share","page_number":386,"box":{"x":116,"y":180,"width":46,"height":10}},{"id":"8bbcd014-e5db-4a9a-aff7-774a691a6d4c","block_type":"box","text":"issuance","page_number":386,"box":{"x":168,"y":180,"width":76,"height":10}},{"id":"a3145916-628a-4c22-bf0c-c74ca3dd0434","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will","page_number":386,"box":{"x":116,"y":211,"width":741,"height":12}},{"id":"b9dbfcde-f00e-4fa7-aa97-4d886300f4d5","block_type":"box","text":"generally support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent","page_number":386,"box":{"x":116,"y":227,"width":768,"height":12}},{"id":"06d2cde0-7d5c-49a0-836f-02690bc4774e","block_type":"box","text":"pre-emptive rights. We consider it good practice for companies to seek regular approval of these","page_number":386,"box":{"x":117,"y":242,"width":720,"height":12}},{"id":"378ba60a-dc35-4793-846c-e3f5ac0c0fb6","block_type":"box","text":"authorities to allow shareholders to take into consideration how prior authorities were used, as well as","page_number":386,"box":{"x":116,"y":258,"width":759,"height":11}},{"id":"4a638f38-15bf-45db-a868-aedde8164ca7","block_type":"box","text":"the current circumstances of the company and the market environment.","page_number":386,"box":{"x":116,"y":273,"width":536,"height":12}},{"id":"ac7e5e37-df37-4ca9-8b17-d7de5e67bb2b","block_type":"box","text":"Share buybacks","page_number":386,"box":{"x":116,"y":304,"width":133,"height":12}},{"id":"37231af4-3889-489b-bddf-4cd2d27e15af","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management","page_number":386,"box":{"x":116,"y":335,"width":746,"height":12}},{"id":"20fc6d3f-3069-4e37-b874-916e3a57da54","block_type":"box","text":"strategy and management’s determination of the appropriate balance between investment that","page_number":386,"box":{"x":116,"y":351,"width":706,"height":12}},{"id":"ab01d7a1-4911-408b-bc72-113f5584ffa9","block_type":"box","text":"supports the long-term growth of the company and returning cash to investors. We also take into","page_number":386,"box":{"x":116,"y":366,"width":721,"height":12}},{"id":"9990f917-e01a-44cc-a1ac-adb6ed8bf24a","block_type":"box","text":"consideration the effect of a buyback program on the company’s balance sheet and executive","page_number":386,"box":{"x":116,"y":382,"width":701,"height":12}},{"id":"6fef7ec2-7ea3-454b-96b5-eeba7e4c2808","block_type":"box","text":"compensation arrangements and the price at which shares are repurchased relative to market price.","page_number":386,"box":{"x":116,"y":397,"width":748,"height":12}},{"id":"bfd64e35-3d60-4d25-90b7-03756f95808c","block_type":"box","text":"We consider it good practice for companies to seek regular approval of these authorities to allow","page_number":386,"box":{"x":116,"y":413,"width":721,"height":12}},{"id":"9ccf1185-2057-4fe0-9eec-ac32453a8f68","block_type":"box","text":"shareholders to take into consideration how prior authorities were used, as well as the current","page_number":386,"box":{"x":116,"y":428,"width":700,"height":12}},{"id":"a13c52a6-5e05-4ec5-b460-c7e0811fdf7d","block_type":"box","text":"circumstances of the company and the market environment.","page_number":386,"box":{"x":116,"y":444,"width":451,"height":12}},{"id":"3ebbea89-3b5a-48d2-ae05-8813d38d5bd4","block_type":"box","text":"Dividends","page_number":386,"box":{"x":117,"y":475,"width":84,"height":9}},{"id":"10a6f5d5-4f4b-4027-9d1f-10d2172fb2e8","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further","page_number":386,"box":{"x":116,"y":506,"width":752,"height":12}},{"id":"c1c9f884-3b91-4398-94da-46403d579298","block_type":"box","text":"clarification where a proposed dividend appears out of line with the company’s financial position.","page_number":386,"box":{"x":116,"y":521,"width":720,"height":12}},{"id":"270db212-b448-458a-9658-d41867c5de71","block_type":"box","text":"Differentiated voting rights","page_number":386,"box":{"x":117,"y":552,"width":219,"height":12}},{"id":"e0db01e0-2214-475f-b3ea-116be4dc9c0f","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same","page_number":386,"box":{"x":116,"y":583,"width":710,"height":12}},{"id":"ed6a6a26-7d70-4cdf-bda8-3a732584b394","block_type":"box","text":"economic exposure. Certain companies, particularly those new to public markets, could make the case","page_number":386,"box":{"x":116,"y":599,"width":768,"height":12}},{"id":"115b4917-2811-4415-aa27-1e58ebdff32a","block_type":"box","text":"to adopt a differentiated voting rights structure, or dual class stock. In those situations, we encourage","page_number":386,"box":{"x":116,"y":614,"width":755,"height":12}},{"id":"93e4b516-9938-4284-b4a3-d1eef59e6de6","block_type":"box","text":"companies to evaluate and seek approval for their capital structure on a periodic basis.","page_number":386,"box":{"x":116,"y":630,"width":650,"height":12}},{"id":"f916e67c-13a1-4d0b-8ff3-2473d188f689","block_type":"box","text":"Transactions and special situations","page_number":386,"box":{"x":357,"y":661,"width":285,"height":12}},{"id":"ac299536-13a4-430e-b708-cdfa58f851ba","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own","page_number":386,"box":{"x":116,"y":692,"width":706,"height":12}},{"id":"5e57d131-486a-4bff-b636-0452c3de587c","block_type":"box","text":"detailed analyses of proposals.","page_number":386,"box":{"x":116,"y":707,"width":229,"height":12}},{"id":"dbd24188-b933-4f8c-9362-bdcbc7b1d8e8","block_type":"box","text":"Mergers and acquisitions","page_number":386,"box":{"x":117,"y":738,"width":201,"height":12}},{"id":"395851b3-a29d-480a-b7db-a2f106feba55","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as","page_number":386,"box":{"x":116,"y":769,"width":740,"height":12}},{"id":"17e6bc96-f759-4530-9093-a8ad234155e9","block_type":"box","text":"minority shareholders. Management should provide an assessment of the proposed transaction’s","page_number":386,"box":{"x":117,"y":785,"width":719,"height":12}},{"id":"1ff7ed88-5250-41f9-b3ff-4eb5887f736e","block_type":"box","text":"strategic and financial rationale, along with its execution and operational risks. We review each","page_number":386,"box":{"x":116,"y":800,"width":703,"height":12}},{"id":"9e4fd4b8-ae11-4c1b-8c01-c07c6b89d2be","block_type":"box","text":"transaction independently based on these factors and the degree to which the transaction enhances","page_number":386,"box":{"x":116,"y":816,"width":743,"height":12}},{"id":"4b22f772-f49e-43f9-980c-54bf2fee5195","block_type":"box","text":"shareholder value. The board might consider establishing an ad hoc transaction committee to","page_number":386,"box":{"x":116,"y":831,"width":699,"height":12}},{"id":"648bc333-eb80-4c8d-abd1-0ee5f7c663be","block_type":"box","text":"undertake an independent assessment of a significant merger or acquisition, in advance of making its","page_number":386,"box":{"x":117,"y":847,"width":757,"height":12}},{"id":"f4928d26-f8f5-4316-8746-5fe2916522fc","block_type":"box","text":"recommendation to shareholders.","page_number":386,"box":{"x":117,"y":862,"width":254,"height":10}},{"id":"b456137a-7157-4df0-ab8b-7833506804c4","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":386,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"f75fd432-734d-4cfc-863e-5f6c2e374a62","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":386,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"a442a3e3-52d5-4665-8ed4-245993539d57","block_type":"box","text":"11","page_number":386,"box":{"x":866,"y":909,"width":15,"height":9}},{"id":"1e974860-25dd-477c-868a-a5c823f7b261","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":386,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e826eb59-050a-4c44-a385-f06c09f7175b","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial","page_number":387,"box":{"x":116,"y":87,"width":703,"height":12}},{"id":"e1c0d005-2eb8-41a6-b42d-45e12d2029d7","block_type":"box","text":"interests.","page_number":387,"box":{"x":117,"y":103,"width":72,"height":9}},{"id":"6d167761-a391-4905-89d0-ba3006ba04a3","block_type":"box","text":"Anti-takeover defenses","page_number":387,"box":{"x":116,"y":134,"width":190,"height":9}},{"id":"9db3abdd-5c66-483a-b97a-cef9ffc8b3cb","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":387,"box":{"x":117,"y":165,"width":757,"height":12}},{"id":"5de427b0-c05d-4d67-9e0c-92353d836fc2","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered","page_number":387,"box":{"x":116,"y":180,"width":731,"height":12}},{"id":"43529d79-87d6-4a03-976c-a04924385bd3","block_type":"box","text":"long-term shareholder value. By exception, a poison pill may be supported if its purpose is to delay a","page_number":387,"box":{"x":117,"y":196,"width":751,"height":12}},{"id":"20672a4d-5240-45aa-81af-db676aee6435","block_type":"box","text":"takeover that is considered sub-optimal and enable management to seek an improved offer. Similarly,","page_number":387,"box":{"x":116,"y":211,"width":761,"height":12}},{"id":"d91bc3ca-be3f-44d9-8c4e-cc8fbe8b73a0","block_type":"box","text":"management could make the case to use a poison pill to block a shareholder activism campaign that","page_number":387,"box":{"x":117,"y":227,"width":751,"height":12}},{"id":"18cc46a2-f567-4f1e-932e-65bf5ef19ce8","block_type":"box","text":"may be counter to the interests of other investors. Defense mechanisms introduced in these","page_number":387,"box":{"x":117,"y":242,"width":687,"height":12}},{"id":"daa51a1d-6123-4ef2-8a55-ec8f02571df6","block_type":"box","text":"circumstances should be limited in term and threshold, and also be closely monitored by the","page_number":387,"box":{"x":116,"y":258,"width":688,"height":12}},{"id":"26d283b7-842b-45b4-9b86-35160ea4d255","block_type":"box","text":"independent members of the board. We consider it good practice for companies to put to a shareholder","page_number":387,"box":{"x":117,"y":273,"width":771,"height":12}},{"id":"f2a97954-1cb1-4b24-b039-29b55e0d6714","block_type":"box","text":"vote any mechanisms expected to be in place for more than 12 months.","page_number":387,"box":{"x":116,"y":289,"width":538,"height":12}},{"id":"ba797489-26ce-45eb-bc5e-c9137620af0f","block_type":"box","text":"Shareholder activism","page_number":387,"box":{"x":116,"y":320,"width":175,"height":9}},{"id":"e56ee087-09a3-4303-936e-08a748dbdb85","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to","page_number":387,"box":{"x":116,"y":351,"width":732,"height":12}},{"id":"897180ab-aa86-4038-9360-820fe7850e8c","block_type":"box","text":"understand their analysis and objectives, once they have publicly disclosed their campaign. We may","page_number":387,"box":{"x":117,"y":366,"width":748,"height":12}},{"id":"d0cf94cd-8578-48e8-a5ac-8b7ee3bedc62","block_type":"box","text":"also engage with company management and possibly board members, especially those the activist","page_number":387,"box":{"x":116,"y":382,"width":741,"height":12}},{"id":"15d9b7c9-74f3-4ffd-ae1a-3eafd622b4a7","block_type":"box","text":"may be seeking to replace. In our assessment, we evaluate various factors, including the concerns","page_number":387,"box":{"x":117,"y":397,"width":737,"height":12}},{"id":"7f8730c5-4130-491d-b0ea-4ce13c4d2624","block_type":"box","text":"raised by the activist and the case for change; the quality of both the activist’s and management’s","page_number":387,"box":{"x":117,"y":413,"width":728,"height":12}},{"id":"134f1dd5-95e2-4a41-8a13-04ec20a10d23","block_type":"box","text":"plans; and the qualifications of each party’s candidates. We evaluate each contested situation by","page_number":387,"box":{"x":117,"y":428,"width":723,"height":12}},{"id":"64a6efd6-be44-4178-a544-292d8e529411","block_type":"box","text":"assessing the potential financial outcome for our clients as minority shareholders.","page_number":387,"box":{"x":116,"y":444,"width":610,"height":12}},{"id":"8e1983f9-dc1f-43bc-a2c5-d51a48102b56","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent","page_number":387,"box":{"x":116,"y":475,"width":728,"height":12}},{"id":"90e7a0fc-4e89-49c8-89b1-deafd1ccb775","block_type":"box","text":"judgment, or the relevant portfolio manager has determined that there is a case for change to enhance","page_number":387,"box":{"x":115,"y":490,"width":767,"height":12}},{"id":"9f7023fe-4c71-412b-9676-78e1cc1b0bbb","block_type":"box","text":"shareholder value, or if the incumbent board members do not demonstrate the relevant skills and","page_number":387,"box":{"x":116,"y":506,"width":725,"height":11}},{"id":"f056750b-6421-437b-815f-f437cf54caec","block_type":"box","text":"expertise or have a poor track record of protecting shareholders’ interests.","page_number":387,"box":{"x":116,"y":521,"width":556,"height":12}},{"id":"c93a44b0-f15b-42ed-b447-567f9d92f3c7","block_type":"box","text":"Significant shareholders and related party transactions","page_number":387,"box":{"x":116,"y":552,"width":446,"height":12}},{"id":"e5828ec3-d349-4bc2-ba32-410c72f0249e","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":387,"box":{"x":117,"y":583,"width":768,"height":12}},{"id":"7af6a841-0776-4604-bc10-bf898c73ba23","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":387,"box":{"x":117,"y":599,"width":534,"height":12}},{"id":"ad596663-866d-44e7-9091-7fcc57f7c6e4","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or","page_number":387,"box":{"x":116,"y":630,"width":751,"height":12}},{"id":"4a75631a-6de7-4a26-9f7f-fa3e88e12ba9","block_type":"box","text":"companies affiliated with the public company, to be disclosed in detail and conducted on terms similar","page_number":387,"box":{"x":116,"y":645,"width":760,"height":12}},{"id":"d5063093-058d-4d1a-b6f6-8c6ee6f1cdcd","block_type":"box","text":"to what would objectively have been agreed with a non-related party. In our view, such transactions","page_number":387,"box":{"x":116,"y":661,"width":737,"height":12}},{"id":"d900cbeb-5b8a-481a-bafb-9bc7a922fbd5","block_type":"box","text":"should be reviewed and approved by the independent members of the board, and if voted on, only","page_number":387,"box":{"x":116,"y":676,"width":729,"height":12}},{"id":"7f3f6d83-dc1d-4bdd-93d3-1db2eb4a80a3","block_type":"box","text":"disinterested shareholders should vote.","page_number":387,"box":{"x":116,"y":692,"width":291,"height":9}},{"id":"b3278c3a-5b10-4382-ad3e-e454a6057e87","block_type":"box","text":"Corporate reporting, risk management and audit","page_number":387,"box":{"x":307,"y":723,"width":385,"height":12}},{"id":"d7a8baca-c32f-481d-920e-ba4400a59263","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s","page_number":387,"box":{"x":117,"y":754,"width":737,"height":12}},{"id":"32ed25d4-4521-4938-932c-2367edcb43b4","block_type":"box","text":"strategy, its implementation and financial performance, as well as to assess the quality of management","page_number":387,"box":{"x":116,"y":769,"width":765,"height":12}},{"id":"2c8bfd93-2675-4ba8-8bce-74251ca8a32d","block_type":"box","text":"and operations and potential for the company to create shareholder value over time. We consider it","page_number":387,"box":{"x":116,"y":785,"width":736,"height":12}},{"id":"d1c2d3b6-1c54-4322-98e1-53af2baa1f43","block_type":"box","text":"good practice for the board to oversee corporate reporting and the policies and procedures","page_number":387,"box":{"x":116,"y":800,"width":674,"height":12}},{"id":"c6dfda40-d68c-45ca-95d4-3f991303e56f","block_type":"box","text":"underpinning the internal audit function and external audit.","page_number":387,"box":{"x":117,"y":816,"width":430,"height":12}},{"id":"44542939-7d8d-4963-b1be-c797bcbc6587","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other","page_number":387,"box":{"x":116,"y":847,"width":734,"height":12}},{"id":"fff3d191-1068-4e25-a90b-ae5e7a3d8f19","block_type":"box","text":"stakeholders, on its financial performance and position. It should provide an accurate and balanced","page_number":387,"box":{"x":116,"y":862,"width":742,"height":12}},{"id":"c36ddc34-8a43-4dbd-b75e-3b5eb4ecc7a6","block_type":"box","text":"assessment of the risks and opportunities the company faces in realizing its long-term strategy.","page_number":387,"box":{"x":116,"y":878,"width":712,"height":12}},{"id":"db140e87-4227-4b9f-b9f3-d79713666032","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":387,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"d4a0f1f1-22df-46c8-81cf-9fbf6059062a","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":387,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"7f0bce86-dc1c-4845-94f7-86816e037294","block_type":"box","text":"12","page_number":387,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"a3a4cfc1-fdff-495f-9f06-cd6a35227384","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":387,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"585020a2-62fc-4af6-9ba6-9764670c6d91","block_type":"box","text":"Accordingly, the assumptions made by management and reviewed by the auditor in preparing the","page_number":388,"box":{"x":116,"y":87,"width":729,"height":12}},{"id":"50d2078d-6db4-4337-a17e-64b7ea0e2487","block_type":"box","text":"financial statements should be reasonable and justified. Financial statements should be prepared in","page_number":388,"box":{"x":116,"y":102,"width":744,"height":13}},{"id":"039d1c33-5dd1-42d1-9dbc-2523f5a2c653","block_type":"box","text":"accordance with globally developed reporting standards and any divergence from generally accepted","page_number":388,"box":{"x":116,"y":118,"width":755,"height":12}},{"id":"d769e42f-cef5-4917-85ef-f9bc8f2794df","block_type":"box","text":"accounting principles should be explained in detail and justified. Accounting restatements should be","page_number":388,"box":{"x":116,"y":134,"width":745,"height":12}},{"id":"fe87c3d0-2c6c-4c10-a634-6fdde4b4fff0","block_type":"box","text":"explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":388,"box":{"x":116,"y":149,"width":638,"height":12}},{"id":"2a29a205-e799-48e3-ae3f-39d217dbb9b6","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":388,"box":{"x":117,"y":180,"width":769,"height":12}},{"id":"d0613a20-1ddb-43da-bc7c-aad2cc4b1a2e","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction,","page_number":388,"box":{"x":117,"y":196,"width":737,"height":12}},{"id":"76e567f7-d675-4890-8b63-1bca5c25ad29","block_type":"box","text":"non-financial information, internal control frameworks and Enterprise Risk Management systems. In","page_number":388,"box":{"x":117,"y":211,"width":743,"height":12}},{"id":"c1daa2d8-2d4b-498b-bd43-eddc2b0fe280","block_type":"box","text":"our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":388,"box":{"x":116,"y":227,"width":730,"height":12}},{"id":"c124a144-b1d2-41a0-993d-9a3c1b661ceb","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders. Audit committees","page_number":388,"box":{"x":116,"y":242,"width":767,"height":12}},{"id":"879f99ca-0b34-4bf3-aa87-d6be403606c6","block_type":"box","text":"should have a procedure in place for assessing the independence of the auditor and the quality of the","page_number":388,"box":{"x":116,"y":258,"width":758,"height":12}},{"id":"8c64a497-0ed5-4bd0-9318-7a40131eab2e","block_type":"box","text":"external audit process annually.","page_number":388,"box":{"x":116,"y":273,"width":241,"height":12}},{"id":"1f9ef307-79be-41b3-b595-8b74a121eff1","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to","page_number":388,"box":{"x":116,"y":304,"width":771,"height":12}},{"id":"16e8d67e-093b-4550-adab-34729d3021f5","block_type":"box","text":"how a company manages risks or generates revenue. BAIS finds it helpful to our understanding when","page_number":388,"box":{"x":117,"y":320,"width":758,"height":12}},{"id":"4649bb62-7c3d-4723-bc39-4461dc4adf07","block_type":"box","text":"companies provide robust, standardized disclosures on their material sustainability-related risks and","page_number":388,"box":{"x":116,"y":335,"width":747,"height":12}},{"id":"d9cdfa87-6827-41ae-b105-15bc57279180","block_type":"box","text":"opportunities. The International Sustainability Standards Board (ISSB) is one entity working to meet","page_number":388,"box":{"x":116,"y":351,"width":743,"height":12}},{"id":"96e7b338-8863-4df4-8212-1e7325ea31b5","block_type":"box","text":"these objectives through its reporting standards, which may be helpful to companies in preparing such","page_number":388,"box":{"x":116,"y":366,"width":763,"height":12}},{"id":"1fc097a5-4921-4ba7-a5f1-a66c47a59202","block_type":"box","text":"reports.","page_number":388,"box":{"x":117,"y":382,"width":54,"height":12}},{"id":"9c2c6891-79e9-45c2-856c-91397502b274","block_type":"box","text":"9","page_number":388,"box":{"x":173,"y":382,"width":5,"height":6}},{"id":"6a657602-4b64-45b0-92c8-4846d2aa7d5a","block_type":"box","text":"However, we do not mandate any specific disclosure framework, and note that companies in","page_number":388,"box":{"x":179,"y":382,"width":696,"height":12}},{"id":"efd681a1-6aff-456b-96d7-b431d25e26dd","block_type":"box","text":"certain jurisdictions are subject to mandatory reporting requirements under standards specified by","page_number":388,"box":{"x":116,"y":397,"width":731,"height":12}},{"id":"028d85bf-8c64-471b-b198-9faccfa9d136","block_type":"box","text":"policy makers.","page_number":388,"box":{"x":117,"y":413,"width":105,"height":12}},{"id":"bcfdee7c-4385-43db-95b5-8c1726e176aa","block_type":"box","text":"10","page_number":388,"box":{"x":224,"y":413,"width":11,"height":6}},{"id":"381602f6-42fc-4fdd-b1b4-cf1cad7f9b61","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":388,"box":{"x":117,"y":444,"width":765,"height":12}},{"id":"13bb8192-953c-4137-a337-7b19a0a26765","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for","page_number":388,"box":{"x":116,"y":459,"width":759,"height":12}},{"id":"c6957555-06e5-48f4-8faf-0f105bf58644","block_type":"box","text":"employees, and potentially other stakeholders, can be a useful mechanism for ensuring that senior","page_number":388,"box":{"x":116,"y":475,"width":738,"height":12}},{"id":"3fab4f45-8958-4e26-8c47-47b612849b10","block_type":"box","text":"management and the board are aware of potential misconduct or breaches in risk management and","page_number":388,"box":{"x":117,"y":490,"width":745,"height":12}},{"id":"d63ea3a6-6abe-484d-b512-cf99763e15d3","block_type":"box","text":"internal control processes.","page_number":388,"box":{"x":117,"y":506,"width":200,"height":12}},{"id":"4ba85c49-8137-497d-86e5-51b5d82a7735","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in","page_number":388,"box":{"x":116,"y":537,"width":748,"height":12}},{"id":"629047b0-47fe-48df-a357-4cf2796de38f","block_type":"box","text":"the quality of corporate reporting. It is helpful when the audit report gives some insight into the scope","page_number":388,"box":{"x":116,"y":552,"width":752,"height":12}},{"id":"0a168805-99cf-4c06-8e08-d6f634becf90","block_type":"box","text":"and focus of the audit, as well as any critical audit matters identified and how these were resolved. A","page_number":388,"box":{"x":116,"y":568,"width":751,"height":12}},{"id":"e9c7f044-02cb-4b64-a50f-26ea96b89582","block_type":"box","text":"comprehensive and effective audit is time and resource intensive, and the audit fee should be","page_number":388,"box":{"x":116,"y":583,"width":700,"height":12}},{"id":"9a9674aa-7c12-4d1e-9628-ba7d02f7938e","block_type":"box","text":"commensurate. Fees paid to the audit firm for non-audit consulting should not exceed the audit fee to a","page_number":388,"box":{"x":116,"y":599,"width":771,"height":12}},{"id":"38413500-8cf9-4573-b800-9b84c3753f9d","block_type":"box","text":"degree that may prompt concerns about the independence of the audit. The audit committee should","page_number":388,"box":{"x":116,"y":614,"width":746,"height":12}},{"id":"fbc7d562-dfdf-4cde-8850-cca847ddc078","block_type":"box","text":"explain its position on auditor tenure and how it confirmed that the auditor remained independent.","page_number":388,"box":{"x":116,"y":630,"width":728,"height":12}},{"id":"ff44d24e-86f1-4c7c-ac39-948455040327","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or","page_number":388,"box":{"x":116,"y":661,"width":735,"height":12}},{"id":"9bd985e2-8593-4021-b1d9-c66a1eeccdc7","block_type":"box","text":"there are material misstatements in financial reports. In markets where relevant, we may vote against a","page_number":388,"box":{"x":116,"y":676,"width":766,"height":12}},{"id":"ccfb9a13-60d4-43e9-a80d-32b88e2cc676","block_type":"box","text":"proposal to approve the financial statements or the discharge of the board when we are concerned","page_number":388,"box":{"x":117,"y":692,"width":731,"height":12}},{"id":"96de9829-202f-42f2-a3d3-03473ab10841","block_type":"box","text":"about the quality of corporate reporting or the audit. We may vote against proposals to appoint the","page_number":388,"box":{"x":116,"y":707,"width":728,"height":12}},{"id":"c29dd483-d84e-4481-85f8-334142b81454","block_type":"box","text":"auditor, ratify the audit report, or approve the audit fee if we are concerned about the auditor’s","page_number":388,"box":{"x":116,"y":723,"width":697,"height":12}},{"id":"5379ee72-7a2b-4c3c-8ad4-f857d3f3e2a6","block_type":"box","text":"independence, the quality of the audit, or there are material misstatements in financial reports and the","page_number":388,"box":{"x":117,"y":738,"width":754,"height":12}},{"id":"92cdc133-1410-4951-b8ea-008880e5fb24","block_type":"box","text":"board has not established reasonable remediation plans.","page_number":388,"box":{"x":117,"y":754,"width":420,"height":12}},{"id":"db8c7fc3-6294-463d-8fa6-ccf0db403967","block_type":"box","text":"9","page_number":388,"box":{"x":143,"y":815,"width":4,"height":5}},{"id":"b46acd32-e76e-4bf2-b3b3-67a1c31c1d2c","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards (IFRS)","page_number":388,"box":{"x":170,"y":815,"width":666,"height":10}},{"id":"8dfe78d4-95a1-46a9-9d91-d735d63aea9b","block_type":"box","text":"Foundation. Please refer to the IFRS website to learn more about the framework and standards S1 “General","page_number":388,"box":{"x":171,"y":828,"width":641,"height":8}},{"id":"d88452a6-1cd2-4b84-b4d2-bdfcbb3c9bad","block_type":"box","text":"Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related Disclosures.”","page_number":388,"box":{"x":171,"y":841,"width":672,"height":9}},{"id":"4de16018-9ee1-455f-9f82-ea7db52c155c","block_type":"box","text":"10","page_number":388,"box":{"x":144,"y":854,"width":8,"height":5}},{"id":"ababf9c5-ad63-42d3-8a34-de52d4fd8261","block_type":"box","text":"See, for examples, https://www.ifrs.org/news-and-events/news/2025/06/ifrs-foundation-publishes-jurisdictional-profiles","page_number":388,"box":{"x":170,"y":854,"width":705,"height":9}},{"id":"5db75cd0-2a6b-4d1d-bd61-89d9bd825adf","block_type":"box","text":"issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company","page_number":388,"box":{"x":170,"y":867,"width":615,"height":9}},{"id":"77736df6-0946-4fdc-b107-1475fc873d2e","block_type":"box","text":"reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en","page_number":388,"box":{"x":170,"y":880,"width":468,"height":9}},{"id":"25a3a249-7eb3-4895-a09c-06164f716ad8","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":388,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"f8fe88e6-2d37-4702-ba43-bdbfa336566f","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":388,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"ad64ede0-00e0-4621-bbb7-c84ea27e30aa","block_type":"box","text":"13","page_number":388,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"17173886-b34a-4630-a2ac-9e2b64821db0","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":388,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"87126020-62fb-47d9-a014-69da4df60b3b","block_type":"box","text":"Shareholder rights and protections","page_number":389,"box":{"x":360,"y":87,"width":285,"height":12}},{"id":"8d1a05d4-67cc-4f13-8dfe-137d57e067f5","block_type":"box","text":"General shareholder meetings","page_number":389,"box":{"x":116,"y":118,"width":247,"height":12}},{"id":"f1a7306e-555d-4a52-a3cc-7044c9d79afb","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine","page_number":389,"box":{"x":117,"y":149,"width":768,"height":12}},{"id":"2222d47c-cdbe-42b0-8321-9630547ec56a","block_type":"box","text":"items of business are discussed and voted on by shareholders in attendance or submitting proxy votes.","page_number":389,"box":{"x":117,"y":165,"width":771,"height":12}},{"id":"41846e3e-6cbf-4e8d-b2b1-1cd0d181e869","block_type":"box","text":"Companies should disclose materials relevant to the shareholder meeting sufficiently in advance so","page_number":389,"box":{"x":117,"y":180,"width":742,"height":12}},{"id":"da763a30-55e3-45e8-924f-e10911546a88","block_type":"box","text":"that shareholders can take them into consideration in their voting decisions. Many companies offer","page_number":389,"box":{"x":116,"y":196,"width":736,"height":12}},{"id":"a535457c-bac8-4fab-a264-dc91ddf15e18","block_type":"box","text":"shareholders the option of participating in the meeting virtually which, whilst welcome, should not limit","page_number":389,"box":{"x":116,"y":211,"width":758,"height":12}},{"id":"adb30ec0-83d8-40cc-8c77-60d1416a43f7","block_type":"box","text":"the rights of shareholders to participate as they would during an in-person meeting.","page_number":389,"box":{"x":116,"y":227,"width":622,"height":12}},{"id":"3832caeb-812e-4623-9d7f-7274a72e7a20","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are","page_number":389,"box":{"x":116,"y":258,"width":757,"height":12}},{"id":"21dbdad2-1fcd-4dbd-915b-df3ca5ae4bf3","block_type":"box","text":"not provided in a timely manner or do not provide sufficient information for us to make an informed","page_number":389,"box":{"x":117,"y":273,"width":733,"height":12}},{"id":"e09ce9cd-3cf7-4035-824b-17499659d03c","block_type":"box","text":"voting decision. We may vote against directors if the format of the shareholder meeting does not","page_number":389,"box":{"x":116,"y":289,"width":719,"height":12}},{"id":"c820b21d-3591-4c43-bc68-a113f15d6b1a","block_type":"box","text":"accommodate reasonable shareholder participation.","page_number":389,"box":{"x":116,"y":304,"width":392,"height":12}},{"id":"03310ab3-62b3-4f48-9ad9-ffa0e2962022","block_type":"box","text":"Bylaw amendments","page_number":389,"box":{"x":117,"y":335,"width":161,"height":12}},{"id":"ebda812b-ba96-4bec-8614-43578e16e382","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally","page_number":389,"box":{"x":116,"y":366,"width":753,"height":12}},{"id":"f4834c38-ec75-48b7-a98e-12b7f7f2850c","block_type":"box","text":"support those that are aligned with the interests of minority shareholders. Any material changes to the","page_number":389,"box":{"x":116,"y":382,"width":761,"height":12}},{"id":"6176d546-5e96-41fb-8479-8b21a3aa9550","block_type":"box","text":"bylaws should be explained in detail and put to a shareholder vote.","page_number":389,"box":{"x":117,"y":397,"width":500,"height":12}},{"id":"fe18de21-537a-469d-b0fe-e74ba224c96c","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce","page_number":389,"box":{"x":116,"y":428,"width":753,"height":12}},{"id":"2693b1f7-0586-4d3e-ac75-c5160f4b8045","block_type":"box","text":"additional burdens. We may vote against directors if material changes are made to the bylaws without","page_number":389,"box":{"x":116,"y":444,"width":760,"height":12}},{"id":"93734548-5b8d-4596-92aa-327a033b4bb2","block_type":"box","text":"shareholder approval.","page_number":389,"box":{"x":116,"y":459,"width":167,"height":12}},{"id":"b3b8902b-e7cd-417d-8657-057e1127ff3e","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders,","page_number":389,"box":{"x":117,"y":490,"width":688,"height":12}},{"id":"296a08cf-90b2-44e4-be4e-b9ffc97f8270","block_type":"box","text":"individually or as a group, with a meaningful shareholding, the right to call a special meeting of","page_number":389,"box":{"x":117,"y":506,"width":704,"height":12}},{"id":"d1190e5f-31df-4320-aeaa-5129a179429f","block_type":"box","text":"shareholders. The shareholding required to exercise this right should balance its utility with the cost to","page_number":389,"box":{"x":116,"y":521,"width":761,"height":12}},{"id":"a6c5fc91-90b5-437a-9734-8f419fc11f32","block_type":"box","text":"the company of holding special meetings.","page_number":389,"box":{"x":116,"y":537,"width":313,"height":12}},{"id":"49e323be-1d33-45d0-a3fc-072729575756","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders,","page_number":389,"box":{"x":117,"y":568,"width":688,"height":12}},{"id":"c4f33ba7-1f9c-42a3-bff4-7ec203dad31b","block_type":"box","text":"individually or as a group, with a meaningful shareholding, the right to nominate directors to the","page_number":389,"box":{"x":117,"y":583,"width":710,"height":12}},{"id":"a349fa48-47e4-4e06-a9e3-7d1e25911418","block_type":"box","text":"company’s board. The threshold for this right should be set so that shareholders can exercise it without","page_number":389,"box":{"x":116,"y":599,"width":770,"height":12}},{"id":"b29535fd-dea0-465b-964e-fb0598bd4f0b","block_type":"box","text":"being unduly disruptive to the board’s own nomination process.","page_number":389,"box":{"x":117,"y":614,"width":473,"height":12}},{"id":"4cbdc5b8-15b9-400a-9739-2454351ce8df","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability","page_number":389,"box":{"x":116,"y":645,"width":728,"height":12}},{"id":"e233c853-9217-4a87-8320-2d1d069b8559","block_type":"box","text":"mechanisms. We may vote for a shareholder proposal seeking the addition of either of these","page_number":389,"box":{"x":117,"y":661,"width":686,"height":12}},{"id":"df0e8a02-59f1-4435-a440-666c5f6530b5","block_type":"box","text":"provisions to a company’s bylaws.","page_number":389,"box":{"x":117,"y":676,"width":252,"height":12}},{"id":"ae582b61-048e-4e11-ac82-a45eda6a5abe","block_type":"box","text":"Change of domicile","page_number":389,"box":{"x":116,"y":707,"width":154,"height":12}},{"id":"b1a17b5b-82b5-4c29-ba68-22c36855dceb","block_type":"box","text":"We generally defer to management on proposals to change a company’s domicile as long as the","page_number":389,"box":{"x":116,"y":738,"width":717,"height":12}},{"id":"c2aaf372-4b6b-40a3-90ef-44a42c5df6a7","block_type":"box","text":"rationale for doing so is consistent with the company’s long-term strategy and business model and the","page_number":389,"box":{"x":117,"y":754,"width":756,"height":12}},{"id":"74968faa-e9c7-401c-89d2-8953284d5e1b","block_type":"box","text":"related costs are immaterial.","page_number":389,"box":{"x":117,"y":769,"width":209,"height":10}},{"id":"5d7d42d8-8c9f-42b9-8f73-9c3b118e5a40","block_type":"box","text":"We may vote against directors or a proposal to change a company’s domicile where it does not seem","page_number":389,"box":{"x":116,"y":800,"width":751,"height":12}},{"id":"50556e26-e142-4ef8-b769-0f3b824cfab2","block_type":"box","text":"aligned with our clients’ financial interests.","page_number":389,"box":{"x":116,"y":816,"width":311,"height":12}},{"id":"1957f0a1-1899-47ed-b0e7-e7e66c69efaa","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":389,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"787359ab-2aa0-46c0-b0bd-b6d43f07ebdd","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":389,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"8d40132a-c374-4deb-aeff-711f8957c93a","block_type":"box","text":"14","page_number":389,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"0eab4a82-34ac-4350-b478-80349e7f027e","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":389,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c0021e9d-82f6-46d9-b540-6d3bbff83b2d","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":390,"box":{"x":116,"y":87,"width":504,"height":12}},{"id":"9b27f1c5-3d00-43d8-95e3-7ed0c52c8545","block_type":"box","text":"Plans to materially change the nature of a company’s business or its purpose should be disclosed and","page_number":390,"box":{"x":117,"y":118,"width":762,"height":12}},{"id":"70a69de2-e85a-4cc9-b797-bd88930f0b7d","block_type":"box","text":"explained in the context of long-term strategy and business dynamics. Such changes may significantly","page_number":390,"box":{"x":116,"y":134,"width":764,"height":12}},{"id":"fe1d60ce-3590-4aa9-845c-b9b436b88ca5","block_type":"box","text":"alter an investor’s views on the suitability of a company for their investment strategy or portfolio.","page_number":390,"box":{"x":116,"y":149,"width":716,"height":12}},{"id":"ff8118f9-cf25-4b1b-bbb1-dd15a01549ae","block_type":"box","text":"Where relevant, we may vote against proposals to change a company’s purpose or the nature of its","page_number":390,"box":{"x":116,"y":180,"width":743,"height":12}},{"id":"8b223ff8-e4b5-487f-91f3-3b8c5993504d","block_type":"box","text":"business if the board has not provided a credible argument for change.","page_number":390,"box":{"x":117,"y":196,"width":530,"height":12}},{"id":"f6a164a5-1703-40e9-9be6-258f3e3c3872","block_type":"box","text":"Shareholder proposals","page_number":390,"box":{"x":409,"y":227,"width":187,"height":11}},{"id":"bc253ffe-fee2-4c43-8cdc-37314029e1e2","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals","page_number":390,"box":{"x":116,"y":258,"width":756,"height":12}},{"id":"2182d076-8e2f-4ff8-94d2-4cf8c7973382","block_type":"box","text":"to the general shareholder meeting asking a company to take a particular course of action subject to","page_number":390,"box":{"x":116,"y":273,"width":749,"height":12}},{"id":"cdb766cd-5724-4230-b469-baf6e8a2275b","block_type":"box","text":"the proposal being supported by a majority of votes cast at the meeting. The topics raised can address","page_number":390,"box":{"x":116,"y":289,"width":767,"height":12}},{"id":"c7ce91de-03c7-4967-82d5-4092707be1e7","block_type":"box","text":"a range of matters that may be relevant to a company’s business.","page_number":390,"box":{"x":116,"y":304,"width":492,"height":12}},{"id":"2bbc2fc3-7917-42a4-8bb5-9a881abc7734","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":390,"box":{"x":116,"y":335,"width":767,"height":12}},{"id":"adb1f58b-ca95-486b-a048-58ba1be59f7e","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with","page_number":390,"box":{"x":116,"y":351,"width":697,"height":12}},{"id":"289afba8-de5b-4c0e-8a10-0d3c95c39cf0","block_type":"box","text":"shareholders’ interests, and what impact the proposal being acted upon might have on financial","page_number":390,"box":{"x":116,"y":366,"width":714,"height":12}},{"id":"fdfb77e2-44c5-4553-a38d-da5cbfe1b736","block_type":"box","text":"performance.","page_number":390,"box":{"x":117,"y":382,"width":103,"height":12}},{"id":"d1df5e68-ef0b-4dde-8b58-d678488ce8af","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or","page_number":390,"box":{"x":116,"y":413,"width":711,"height":12}},{"id":"980efb97-695f-4c01-ab6c-702d4b3b1657","block_type":"box","text":"performance is to engage to understand the apparent difference in perspective. If we are concerned a","page_number":390,"box":{"x":117,"y":428,"width":760,"height":12}},{"id":"5391ff4b-1150-459c-a909-759018f8bb0c","block_type":"box","text":"company is not acting in shareholders’ financial interests, we may vote against the election of directors.","page_number":390,"box":{"x":116,"y":444,"width":772,"height":12}},{"id":"9a649f4c-2eac-4f9c-a75e-e75d08483bf3","block_type":"box","text":"We may support a relevant shareholder proposal if doing so is aligned with our clients’ financial","page_number":390,"box":{"x":116,"y":459,"width":712,"height":12}},{"id":"d8313c15-f604-4ac3-b97c-2a2baf0ddd7d","block_type":"box","text":"interests. We generally do not support shareholder proposals that are legally binding on the company,","page_number":390,"box":{"x":117,"y":475,"width":760,"height":12}},{"id":"292b41b8-a7ae-4fd2-a407-fd018e15678c","block_type":"box","text":"seek to alter a company’s strategy or direct its operations, or are unrelated to how a company","page_number":390,"box":{"x":116,"y":490,"width":700,"height":12}},{"id":"e7c76f61-71f0-4d95-9702-8e9cc7d22fc6","block_type":"box","text":"manages risk or generates financial returns.","page_number":390,"box":{"x":117,"y":506,"width":331,"height":12}},{"id":"2aa2ac29-c97d-4cf7-ad4a-79cd0cb090eb","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place","page_number":390,"box":{"x":117,"y":537,"width":737,"height":12}},{"id":"a3172093-1ce9-41a5-89c0-7efb3cc1a00d","block_type":"box","text":"restrictions and limitations on how we can interact with the companies in which we invest on behalf of","page_number":390,"box":{"x":117,"y":552,"width":755,"height":12}},{"id":"40f31f22-c87a-424a-9ca5-530dcf421cce","block_type":"box","text":"our clients, including our ability to submit shareholder proposals. We do not submit shareholder","page_number":390,"box":{"x":116,"y":568,"width":712,"height":12}},{"id":"7e361625-537b-4370-b1c8-de555d15ec5e","block_type":"box","text":"proposals but can vote, on behalf of clients who authorize us to do so, on proposals put forth by others.","page_number":390,"box":{"x":117,"y":583,"width":770,"height":12}},{"id":"1af49d12-705f-4d6e-9c01-a178ad8692c0","block_type":"box","text":"Corporate political activities","page_number":390,"box":{"x":387,"y":614,"width":230,"height":12}},{"id":"b275b8e9-4070-4673-96ec-5acc9365bd76","block_type":"box","text":"A corporation’s ability to engage in the policy process is subject to rules and regulations set by the","page_number":390,"box":{"x":116,"y":645,"width":733,"height":12}},{"id":"1c24f43b-2924-4daf-ba4a-83253fed4cea","block_type":"box","text":"jurisdictions in which they engage. When a corporation reports material financial risk related to policy","page_number":390,"box":{"x":115,"y":661,"width":749,"height":12}},{"id":"f441e58a-4092-47a8-9d88-f489be071f28","block_type":"box","text":"and or regulatory changes, BAIS may seek to understand how it is addressing the material risk","page_number":390,"box":{"x":116,"y":676,"width":703,"height":12}},{"id":"6452ac2e-8da3-42bd-856f-aa87f3dc9760","block_type":"box","text":"identified. We seek to understand how companies engage in corporate political activities and ensure","page_number":390,"box":{"x":117,"y":692,"width":743,"height":12}},{"id":"05cbeb52-c820-4686-9801-2605068c47e4","block_type":"box","text":"that their participation is consistent with their public statements on policy matters material to the","page_number":390,"box":{"x":116,"y":707,"width":709,"height":12}},{"id":"bf468c25-70f6-4c42-91d6-cad7fcbafd21","block_type":"box","text":"company’s long-term strategy. The board should be aware of the approach taken by management on","page_number":390,"box":{"x":116,"y":723,"width":750,"height":12}},{"id":"2378020e-3d81-4a7d-bf9c-345f1d2f9b11","block_type":"box","text":"corporate political activities as there can be reputational risks arising from inconsistencies between a","page_number":390,"box":{"x":116,"y":738,"width":746,"height":12}},{"id":"1fab6928-b51c-4675-b431-42b65724db41","block_type":"box","text":"company’s policy engagement and stated policy positions. Companies should, as a minimum, meet all","page_number":390,"box":{"x":116,"y":754,"width":758,"height":12}},{"id":"19757d21-dfd3-4212-9f6e-578b731ee209","block_type":"box","text":"regulatory disclosure requirements on political activities. We may engage a company where we would","page_number":390,"box":{"x":117,"y":769,"width":753,"height":12}},{"id":"b7a47e9b-645b-48ba-81ef-0353269c6cc5","block_type":"box","text":"like to better understand its approach to policy engagement, where relevant.","page_number":390,"box":{"x":117,"y":785,"width":563,"height":12}},{"id":"b241e4b6-b1e4-4702-a791-4db526b94ac7","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their","page_number":390,"box":{"x":116,"y":816,"width":732,"height":12}},{"id":"6e56e2de-7661-4e1f-9d8b-e3205368d812","block_type":"box","text":"policy priorities and the policy positions of the trade associations of which they are active members and","page_number":390,"box":{"x":117,"y":831,"width":770,"height":12}},{"id":"e35426a4-bd08-41c6-a85e-f2f1c1513f64","block_type":"box","text":"any engagements undertaken by trade associations on behalf of members.","page_number":390,"box":{"x":116,"y":847,"width":562,"height":12}},{"id":"952ed2f3-dee0-487e-ab9a-b7ab3f0fb66b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":390,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"b9548e58-914f-4a35-9549-2a9d65221cb0","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":390,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"f335b04d-9d72-47c1-ba53-480161819b17","block_type":"box","text":"15","page_number":390,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"c6148146-1b84-4ba8-8425-950ceb826257","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":390,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"fd3c9576-6032-4d27-bfe9-d5fa2368b4d8","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s","page_number":391,"box":{"x":116,"y":87,"width":712,"height":12}},{"id":"ffa11999-3fca-454a-b2c6-ee3541198447","block_type":"box","text":"disclosures are insufficient to address the material risk it has identified.","page_number":391,"box":{"x":116,"y":102,"width":530,"height":10}},{"id":"2b4aa452-dcb7-43d6-816b-2f4cbe1986c9","block_type":"box","text":"Material sustainability-related risks and opportunities","page_number":391,"box":{"x":287,"y":134,"width":431,"height":12}},{"id":"af1d1dcb-e9e8-40c6-ac0d-ada0e32fa781","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their","page_number":391,"box":{"x":116,"y":165,"width":751,"height":12}},{"id":"1ff7b61c-b4fe-405d-91eb-a6d2c5f44c5a","block_type":"box","text":"business operations. In our experience, sustainability-related factors","page_number":391,"box":{"x":117,"y":180,"width":505,"height":12}},{"id":"b2b45fcc-51a3-43b3-bf59-2c0c10e39d2c","block_type":"box","text":"11","page_number":391,"box":{"x":624,"y":180,"width":9,"height":6}},{"id":"d23060b4-1086-4993-93c5-e2b5bcee1f0c","block_type":"box","text":"that are relevant to a company’s","page_number":391,"box":{"x":635,"y":180,"width":249,"height":12}},{"id":"53ac6d68-6223-446e-b9bd-001aa4606b31","block_type":"box","text":"business or material to its financial performance, are generally operational considerations embedded","page_number":391,"box":{"x":117,"y":196,"width":752,"height":12}},{"id":"08dc1d82-ea25-4557-917a-cddebfa26340","block_type":"box","text":"into day-to-day management systems. Certain sustainability issues may also inform long-term strategic","page_number":391,"box":{"x":117,"y":211,"width":769,"height":12}},{"id":"a2b01350-d11b-4de7-af42-cf84015c9ab7","block_type":"box","text":"planning, for example, investing in product innovation in anticipation of changing consumer demand or","page_number":391,"box":{"x":117,"y":227,"width":763,"height":12}},{"id":"424fe09a-838c-4b62-af81-990f7329a2de","block_type":"box","text":"adapting supply chains in response to changing regulatory requirements.","page_number":391,"box":{"x":116,"y":242,"width":546,"height":12}},{"id":"7f29d027-c114-4582-8e8c-7720ece434af","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business","page_number":391,"box":{"x":116,"y":273,"width":769,"height":12}},{"id":"0eeae8d3-c864-4b58-906d-673a5ae5ee6e","block_type":"box","text":"relevant will vary by company business model, sector, key markets, and time horizon, amongst other","page_number":391,"box":{"x":117,"y":289,"width":751,"height":12}},{"id":"f69c6225-789c-4ce3-b640-3de4983c6879","block_type":"box","text":"considerations. From company disclosures and our engagement, we aim to understand how","page_number":391,"box":{"x":116,"y":304,"width":689,"height":12}},{"id":"779b7ae9-b597-4253-8e4a-d1a6c6adbb92","block_type":"box","text":"management is identifying, assessing and integrating material sustainability-related risks and","page_number":391,"box":{"x":117,"y":320,"width":694,"height":12}},{"id":"76d1d699-80e0-4cc8-8e61-6ce5b8fbd772","block_type":"box","text":"opportunities into their business decision-making and practices. Doing so helps us undertake a more","page_number":391,"box":{"x":116,"y":335,"width":752,"height":12}},{"id":"a34459a3-7a50-470b-b348-a791619692ac","block_type":"box","text":"holistic assessment of a company’s potential financial performance and the likely risk-adjusted returns","page_number":391,"box":{"x":117,"y":351,"width":761,"height":12}},{"id":"75b7daf8-bfa4-4301-91b8-5301dab75b6d","block_type":"box","text":"of an investment.","page_number":391,"box":{"x":116,"y":366,"width":133,"height":10}},{"id":"526fd2c5-a546-477c-b0ce-6c24f20642d7","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about","page_number":391,"box":{"x":116,"y":397,"width":753,"height":12}},{"id":"4244cea5-a0ae-41d2-9eb1-75bfb74d1e04","block_type":"box","text":"how a company is managing or disclosing its approach to material sustainability-related risks that may","page_number":391,"box":{"x":117,"y":413,"width":761,"height":12}},{"id":"248bac80-68d8-4b00-9720-92eab56456eb","block_type":"box","text":"impact financial returns.","page_number":391,"box":{"x":117,"y":428,"width":181,"height":12}},{"id":"b9c22634-e824-4a2a-9de6-07d12e051cf1","block_type":"box","text":"Key stakeholders","page_number":391,"box":{"x":431,"y":459,"width":143,"height":12}},{"id":"f710ec34-0fb9-47f4-ae54-f9c0fa202ca6","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various","page_number":391,"box":{"x":117,"y":490,"width":727,"height":12}},{"id":"71042726-55bd-4e51-bfcb-a673e080e06e","block_type":"box","text":"parties on whom they depend for their success over time. It is for each company to determine their key","page_number":391,"box":{"x":117,"y":506,"width":766,"height":12}},{"id":"3dbbc1ff-4bed-4367-8928-37959bb44ad2","block_type":"box","text":"stakeholders based on what is material to their business and long-term financial performance. For","page_number":391,"box":{"x":116,"y":521,"width":731,"height":12}},{"id":"3f1b88a1-d211-44df-8dbc-e7a381126c76","block_type":"box","text":"many companies, key stakeholders include employees, business partners (such as suppliers and","page_number":391,"box":{"x":117,"y":537,"width":726,"height":12}},{"id":"0b9d90cc-2d2a-42d9-a235-cd38f9ab8488","block_type":"box","text":"distributors), clients and consumers, regulators, and the communities in which they operate.","page_number":391,"box":{"x":116,"y":552,"width":687,"height":12}},{"id":"42167d4a-5bcf-4968-bdfb-cdefbe331314","block_type":"box","text":"Companies that appropriately balance the interests of investors and other stakeholders are, in our","page_number":391,"box":{"x":117,"y":568,"width":730,"height":12}},{"id":"6678ca48-66f7-46ad-aeac-aac46ae5d5c1","block_type":"box","text":"experience, more likely to be financially resilient over time.","page_number":391,"box":{"x":116,"y":583,"width":438,"height":12}},{"id":"3d78c7a3-efb7-4995-811b-7eb7de630bec","block_type":"box","text":"Climate and decarbonization investment objectives","page_number":391,"box":{"x":295,"y":614,"width":414,"height":12}},{"id":"5dba474f-0192-4b15-8602-c4d794541d29","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial","page_number":391,"box":{"x":117,"y":645,"width":737,"height":12}},{"id":"03dae74a-9759-46c3-b2e3-ff1db11841de","block_type":"box","text":"objectives. Consistent with the objectives of those investment strategies, our stewardship activity in","page_number":391,"box":{"x":116,"y":661,"width":735,"height":12}},{"id":"6d82e1b2-a735-42dd-a681-e829147e8b8d","block_type":"box","text":"relation to the holdings in those funds differs in some respects from BAIS’ benchmark guidelines, which","page_number":391,"box":{"x":117,"y":676,"width":765,"height":12}},{"id":"6324f983-9d0e-4abb-9ffc-c4b004059ce1","block_type":"box","text":"are described above. Specifically, for those funds’ holdings, we look to investee companies to","page_number":391,"box":{"x":116,"y":692,"width":694,"height":12}},{"id":"a78895c7-8641-467c-b8d0-e5c34b0b2a88","block_type":"box","text":"demonstrate that they are aligned with a decarbonization pathway that means their business model","page_number":391,"box":{"x":116,"y":707,"width":736,"height":12}},{"id":"62e16d02-7dc4-4cb3-812c-c18d0c1ccf7c","block_type":"box","text":"would be viable in a low-carbon economy, i.e., one in which global temperature rise is limited to 1.5°C","page_number":391,"box":{"x":116,"y":723,"width":754,"height":12}},{"id":"df1b29b1-aa6b-4265-a902-5dfbedc9f00d","block_type":"box","text":"11","page_number":391,"box":{"x":144,"y":776,"width":7,"height":5}},{"id":"c35df4f1-270b-4455-aa23-1467be6d0e51","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in a","page_number":391,"box":{"x":171,"y":776,"width":691,"height":10}},{"id":"6218e335-81ce-4e5f-8993-4901a91ddb93","block_type":"box","text":"company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":391,"box":{"x":170,"y":789,"width":686,"height":10}},{"id":"0ed31b0f-9efd-4a70-b823-7ede83e6639d","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":391,"box":{"x":170,"y":802,"width":682,"height":10}},{"id":"2e4e27e9-fce9-43ca-89aa-651feeadd64c","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":391,"box":{"x":170,"y":815,"width":683,"height":10}},{"id":"147bc42a-3a6d-4b33-b9d6-73e4a20432e1","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will effectively","page_number":391,"box":{"x":170,"y":828,"width":708,"height":10}},{"id":"6b66134e-0007-4102-9d51-5f1ca7d3d838","block_type":"box","text":"evaluate and manage material sustainability-related risks and opportunities relevant to their businesses. Governance is","page_number":391,"box":{"x":170,"y":841,"width":707,"height":9}},{"id":"74bbd45f-7284-4007-b823-7d750ae11029","block_type":"box","text":"the core means by which boards can oversee the creation of durable financial value over time. Appropriate risk","page_number":391,"box":{"x":170,"y":854,"width":658,"height":9}},{"id":"0dd7b65d-1c6e-4088-be06-42ff3d7ac29a","block_type":"box","text":"oversight of business-relevant and material sustainability-related considerations is a component of a sound governance","page_number":391,"box":{"x":170,"y":867,"width":708,"height":9}},{"id":"0d64f9e5-253f-4afe-b378-b14bdb33dc0f","block_type":"box","text":"framework.","page_number":391,"box":{"x":170,"y":880,"width":65,"height":7}},{"id":"66c84bb2-0e6b-4f3b-9756-5e2ef5f6b341","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":391,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"fc974eb2-ed04-4b86-bfc9-8afeb6b9a2fd","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":391,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"d0442d97-5506-401e-8ea3-f5f250bfdd7a","block_type":"box","text":"16","page_number":391,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"b2faa15b-468f-4823-847a-d3d0b8a940e8","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":391,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"27715302-8d90-426f-a1d7-45f78ac5b1fa","block_type":"box","text":"above pre-industrial levels. In addition, clients in separately managed accounts may instruct BlackRock","page_number":392,"box":{"x":116,"y":87,"width":771,"height":12}},{"id":"e07a014e-bacb-4702-b5cd-97b82af59dec","block_type":"box","text":"to apply these guidelines to their holdings. Both in the case of funds and separately managed","page_number":392,"box":{"x":116,"y":102,"width":698,"height":13}},{"id":"d1b8d31e-53d3-4909-aa2a-5ce8fca52271","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable","page_number":392,"box":{"x":116,"y":118,"width":770,"height":12}},{"id":"98530538-071e-4141-825b-2e0cf9239a9f","block_type":"box","text":"fund board or client.","page_number":392,"box":{"x":116,"y":134,"width":153,"height":9}},{"id":"908fd4b5-f52c-45ad-ac15-294d74569489","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services","page_number":392,"box":{"x":116,"y":165,"width":766,"height":12}},{"id":"31efaa5f-f794-4511-8e5b-36013469d42e","block_type":"box","text":"that contribute to real world decarbonization or have a carbon intensive business model and face","page_number":392,"box":{"x":116,"y":180,"width":724,"height":10}},{"id":"f5698815-53ed-49a4-84af-4bd828e5b8d8","block_type":"box","text":"outsized impacts from the low carbon transition, based on reported and estimated scopes 1, 2, and 3","page_number":392,"box":{"x":116,"y":196,"width":754,"height":11}},{"id":"5f58cbfc-67b2-4c9e-9b33-ea8007c996bf","block_type":"box","text":"greenhouse gas emissions. These companies should provide disclosures that set out their","page_number":392,"box":{"x":116,"y":211,"width":675,"height":12}},{"id":"187f04b6-b79c-42b1-9c90-e869101845a4","block_type":"box","text":"governance, strategy, risk management processes and metrics and targets relevant to","page_number":392,"box":{"x":116,"y":227,"width":646,"height":12}},{"id":"6095a5c2-e18d-4dbe-acb2-b8f6b739eb63","block_type":"box","text":"decarbonization. It is helpful to investors’ understanding when these disclosures include an explanation","page_number":392,"box":{"x":116,"y":242,"width":770,"height":12}},{"id":"e5267154-4085-4e39-868d-31e5f46b62f0","block_type":"box","text":"of the decarbonization scenarios a company is using in its near- and long-term planning, as well as its","page_number":392,"box":{"x":116,"y":258,"width":760,"height":12}},{"id":"a8144240-8556-4049-8b22-358476a0de70","block_type":"box","text":"scope 1, scope 2 and material scope 3 greenhouse gas (GHG) emissions and reduction targets for","page_number":392,"box":{"x":116,"y":273,"width":739,"height":12}},{"id":"fd638f73-d93c-4962-96b7-fc3254cea57e","block_type":"box","text":"scope 1 and 2 emissions.","page_number":392,"box":{"x":116,"y":289,"width":194,"height":12}},{"id":"87b35e5c-56fc-4584-a214-7300862a4b8f","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against","page_number":392,"box":{"x":117,"y":320,"width":744,"height":12}},{"id":"4e144fc5-eebb-4ff2-9da8-6a5f5eaf14b2","block_type":"box","text":"directors or support for a relevant shareholder proposal if a company does not appear to be adequately","page_number":392,"box":{"x":116,"y":335,"width":771,"height":12}},{"id":"cab0ed9a-bdf5-472f-853b-478c10ab8776","block_type":"box","text":"acting to address or disclosing material climate-related risks, consistent with the parameters set out in","page_number":392,"box":{"x":116,"y":351,"width":761,"height":12}},{"id":"331279b4-c590-48c9-9499-f1f54e88f58a","block_type":"box","text":"these climate- and decarbonization-specific guidelines. We may recommend supporting shareholder","page_number":392,"box":{"x":116,"y":366,"width":749,"height":12}},{"id":"3f71b231-6a3c-405b-bddb-91541372a692","block_type":"box","text":"proposals seeking information relevant to a company’s stated low-carbon transition strategy or targets","page_number":392,"box":{"x":117,"y":382,"width":760,"height":12}},{"id":"92af98cf-948e-4517-9a5d-5fb17afa029a","block_type":"box","text":"that the company does not currently provide and that would be helpful to investment decision-making.","page_number":392,"box":{"x":116,"y":397,"width":760,"height":12}},{"id":"70390249-87c9-4c9f-89e4-3a0e8e584516","block_type":"box","text":"We would not recommend support for shareholder proposals that seek to constrain board or","page_number":392,"box":{"x":116,"y":413,"width":689,"height":12}},{"id":"e8481524-346f-475c-9f01-38523c7bc71c","block_type":"box","text":"management decision-making or direct specific business or strategic decisions. As under the BAIS","page_number":392,"box":{"x":117,"y":428,"width":736,"height":12}},{"id":"7d6c525a-0c26-4c14-8ede-6bce3f2a6cab","block_type":"box","text":"benchmark approach, the active portfolio managers are ultimately responsible for voting consistent","page_number":392,"box":{"x":117,"y":444,"width":737,"height":12}},{"id":"5a51cb89-7bcb-4c78-8f13-6f25c8309753","block_type":"box","text":"with their investment mandate and fund objectives. For the funds and accounts in scope, voting on","page_number":392,"box":{"x":116,"y":459,"width":736,"height":12}},{"id":"69c8efb7-6367-4cab-bd36-fc0bcd35f14a","block_type":"box","text":"matters not related to climate risk and the energy transition is undertaken in line with BAIS’ benchmark","page_number":392,"box":{"x":117,"y":475,"width":765,"height":12}},{"id":"88afb08a-4a39-4545-8ab1-d1912247729c","block_type":"box","text":"guidelines.","page_number":392,"box":{"x":116,"y":490,"width":85,"height":12}},{"id":"0f1ab12e-e74d-4133-9afb-4b53b7ba93e1","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":392,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"cdefe058-f0b5-4cbb-bf20-c4a449e5f63b","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":392,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"2b13be12-cf36-494e-a0ee-904368c42964","block_type":"box","text":"17","page_number":392,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"2218da76-70d4-49ea-a9cf-45f39ed892f4","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":392,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8bb67324-f021-4a84-996d-0fd4dc6e4635","block_type":"box","text":"Appendix 1: How we fulfil and oversee our investment stewardship responsibilities for","page_number":393,"box":{"x":116,"y":87,"width":695,"height":12}},{"id":"0084ad8c-ff75-4b3f-9a91-eae7871f7029","block_type":"box","text":"non-index equity investment strategies","page_number":393,"box":{"x":117,"y":103,"width":316,"height":12}},{"id":"2025f138-e217-4581-8dfe-f88523bbb1a9","block_type":"box","text":"Oversight","page_number":393,"box":{"x":116,"y":134,"width":83,"height":12}},{"id":"f7117a21-503f-4e23-946c-600e5ba60357","block_type":"box","text":"The Global Head of BAIS has primary oversight of and responsibility for the team’s activities, including","page_number":393,"box":{"x":116,"y":165,"width":764,"height":12}},{"id":"9cac2bcc-d98b-47ec-9e45-ec973a528ef9","block_type":"box","text":"voting in accordance with the BlackRock Active Investment Stewardship Global Engagement and","page_number":393,"box":{"x":116,"y":180,"width":726,"height":12}},{"id":"956c759b-d4b1-4046-a7d5-10b148557cb3","block_type":"box","text":"Voting Guidelines (the “Guidelines”), which require the application of professional judgment and","page_number":393,"box":{"x":116,"y":196,"width":714,"height":12}},{"id":"080ee2ea-1ef6-4cd7-88a2-18dc15923331","block_type":"box","text":"consideration of each company’s unique circumstances, as well as input from active investors. BAIS is","page_number":393,"box":{"x":116,"y":211,"width":765,"height":12}},{"id":"7532950d-0349-4eb4-96d7-43e89695d720","block_type":"box","text":"independent from BlackRock Investment Stewardship in our engagement and voting activities,","page_number":393,"box":{"x":117,"y":227,"width":704,"height":12}},{"id":"beee93eb-f1b6-41cc-ba13-4f89b7e835a7","block_type":"box","text":"reporting lines, and oversight.","page_number":393,"box":{"x":117,"y":242,"width":224,"height":12}},{"id":"55f16344-3c35-4394-a647-67f9a83f412d","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders","page_number":393,"box":{"x":116,"y":273,"width":765,"height":12}},{"id":"6a57490f-5d90-404b-8a7b-0df1ea167480","block_type":"box","text":"in BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s","page_number":393,"box":{"x":117,"y":289,"width":742,"height":12}},{"id":"934cc69e-c48b-4ba9-ac85-ddcc6755a52b","block_type":"box","text":"approach to investment stewardship on non-index equity investment strategies. The Group may advise","page_number":393,"box":{"x":116,"y":304,"width":769,"height":12}},{"id":"c6adb466-6c8d-4b48-b78f-de31eabd13b2","block_type":"box","text":"on and review amendments to BAIS’ policies and practices. It does not determine voting decisions,","page_number":393,"box":{"x":116,"y":320,"width":739,"height":12}},{"id":"d36a21bd-7391-405d-b956-738a395c3b8a","block_type":"box","text":"which are the responsibility of BAIS and the relevant active equity investors.","page_number":393,"box":{"x":116,"y":335,"width":568,"height":12}},{"id":"b47a8a78-cd1c-41fd-b654-c80891415239","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues,","page_number":393,"box":{"x":117,"y":366,"width":721,"height":12}},{"id":"0878ac4d-40ad-4294-a2fd-fdd9988637f8","block_type":"box","text":"executes proxy votes, and conducts vote operations (including maintaining records of votes cast) in a","page_number":393,"box":{"x":116,"y":382,"width":757,"height":12}},{"id":"f22882b1-8b2d-4e30-9e30-6834999e0c4d","block_type":"box","text":"manner consistent with the Guidelines. BAIS also conducts research on corporate governance issues","page_number":393,"box":{"x":117,"y":397,"width":757,"height":12}},{"id":"6f484492-e818-4c2f-ac93-60f6c36db706","block_type":"box","text":"and participates in industry discussions to contribute to and keep abreast of important developments in","page_number":393,"box":{"x":116,"y":413,"width":768,"height":12}},{"id":"f2e230e3-8c10-475b-b2ad-f0bb8b9e55ac","block_type":"box","text":"the corporate governance field. BAIS may use third parties for certain of the foregoing activities and","page_number":393,"box":{"x":116,"y":428,"width":744,"height":12}},{"id":"7812ed86-f1df-4076-916a-cd22c5669c9b","block_type":"box","text":"performs oversight of those third parties (see “Use and oversight of third-party vote services providers”","page_number":393,"box":{"x":117,"y":444,"width":765,"height":12}},{"id":"ef9f2efa-24fe-447e-8d0c-7c4eb88faecb","block_type":"box","text":"below).","page_number":393,"box":{"x":117,"y":459,"width":58,"height":12}},{"id":"ba4eb663-8452-4e18-9c5d-51c9bbe15f15","block_type":"box","text":"Voting guidelines and vote execution","page_number":393,"box":{"x":116,"y":490,"width":302,"height":12}},{"id":"135af02f-6331-491e-b5c3-5f1ab8011d2c","block_type":"box","text":"BlackRock votes on proxy issues when our clients authorize us to do so. We carefully consider the","page_number":393,"box":{"x":117,"y":521,"width":735,"height":12}},{"id":"b077b3db-5685-4092-8e34-8d26af8c6e06","block_type":"box","text":"voting items submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have","page_number":393,"box":{"x":116,"y":537,"width":728,"height":12}},{"id":"b0544b9e-afc3-4420-a550-654ef30625b8","block_type":"box","text":"voting authority. BlackRock votes (or refrains from voting) for each Fund for which we have voting","page_number":393,"box":{"x":116,"y":552,"width":730,"height":12}},{"id":"16a6c419-7442-45ee-a0dd-84038dfec144","block_type":"box","text":"authority based on our evaluation of the alignment of the voting items with the long-term economic","page_number":393,"box":{"x":116,"y":568,"width":734,"height":12}},{"id":"2cc88bcd-4b4c-45a7-93cb-4b91ccb97c54","block_type":"box","text":"interests of our clients, in the exercise of our independent business judgment, and without regard to the","page_number":393,"box":{"x":117,"y":583,"width":771,"height":12}},{"id":"562516ce-c5b9-430f-9a8c-894223a69370","block_type":"box","text":"relationship of the issuer (or any shareholder proponent or dissident shareholder) to the Fund, the","page_number":393,"box":{"x":117,"y":599,"width":730,"height":12}},{"id":"45612a4b-e979-416a-9e9b-8c1f56619484","block_type":"box","text":"Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":393,"box":{"x":117,"y":614,"width":754,"height":12}},{"id":"62150107-d865-479c-b46a-67a5f38482bc","block_type":"box","text":"management policies and procedures,” below).","page_number":393,"box":{"x":117,"y":630,"width":353,"height":12}},{"id":"604a2f58-9498-4445-8112-bce0aecfc41d","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the","page_number":393,"box":{"x":116,"y":661,"width":754,"height":12}},{"id":"1d85b577-58c2-480b-8c58-33ba220b6373","block_type":"box","text":"Guidelines, although portfolio managers have the right to vote differently on their holdings if they","page_number":393,"box":{"x":117,"y":676,"width":713,"height":12}},{"id":"384d8c4d-b1a1-4186-aa48-658838fd06db","block_type":"box","text":"determine doing so is more aligned with the investment objective and financial interests of clients","page_number":393,"box":{"x":116,"y":692,"width":719,"height":12}},{"id":"e7ff200d-7f90-4d52-ae74-9dd0248b29d2","block_type":"box","text":"invested in the funds they manage.","page_number":393,"box":{"x":117,"y":707,"width":258,"height":12}},{"id":"3f6fa483-c2c6-4f6e-a9ae-f560bf2a5d2c","block_type":"box","text":"The Guidelines are not intended to be exhaustive. BAIS applies the Guidelines on a case-by-case","page_number":393,"box":{"x":116,"y":738,"width":726,"height":12}},{"id":"2ddb1ee7-ebd6-4b13-8170-94c821dffb69","block_type":"box","text":"basis, in the context of the individual circumstances of each company and the specific issue under","page_number":393,"box":{"x":117,"y":754,"width":728,"height":12}},{"id":"680449da-655f-44c4-9f69-cc7722d7119d","block_type":"box","text":"review. As such, the Guidelines do not indicate how BAIS will vote in every instance. Rather, they","page_number":393,"box":{"x":117,"y":769,"width":723,"height":12}},{"id":"0a740ad3-7564-4019-9d45-e3bd3d901dbb","block_type":"box","text":"reflect our view about corporate governance issues generally, and provide insight into how we typically","page_number":393,"box":{"x":117,"y":785,"width":761,"height":12}},{"id":"ab3f8ec6-ee0c-4800-9dcb-4c288411a592","block_type":"box","text":"approach issues that are commonly put to a shareholder vote. The Guidelines are reviewed annually","page_number":393,"box":{"x":116,"y":800,"width":747,"height":12}},{"id":"f2bae02e-9e0c-44a7-ac0e-5d294a7cdf92","block_type":"box","text":"and updated as necessary to reflect changes in market practices, developments in corporate","page_number":393,"box":{"x":116,"y":816,"width":688,"height":12}},{"id":"46aaa19b-db91-46b9-a872-89ca0cf7adc5","block_type":"box","text":"governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":393,"box":{"x":116,"y":831,"width":765,"height":12}},{"id":"5fe90ad3-ee07-4c4d-9a8f-f80d04c2c0d0","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":393,"box":{"x":116,"y":847,"width":751,"height":12}},{"id":"23c72463-f218-4ba2-b898-03970a008dad","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":393,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"75eb30d5-38b6-4e89-b167-7685bd5c3e7b","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":393,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"29e2a7d7-5ff1-4aab-bbd5-ecb6736fd58f","block_type":"box","text":"18","page_number":393,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"374f7572-8029-469c-aee3-d373878b8cab","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":393,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"5d7ac34b-13e6-4934-98da-a8881c0a48eb","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such","page_number":394,"box":{"x":117,"y":87,"width":740,"height":12}},{"id":"4e175af0-f85f-4394-82c3-496236f10be4","block_type":"box","text":"proxies, as well as the desirability of voting such proxies. These issues include, but are not limited to: i)","page_number":394,"box":{"x":117,"y":102,"width":768,"height":13}},{"id":"91d224c7-300e-4ac7-a931-3c123d272aec","block_type":"box","text":"untimely notice of shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii)","page_number":394,"box":{"x":117,"y":118,"width":735,"height":12}},{"id":"28a3ba1a-8487-4a3e-a7b8-99252747465d","block_type":"box","text":"requirements to vote proxies in person; iv) “share-blocking” (requirements that investors who exercise","page_number":394,"box":{"x":117,"y":134,"width":759,"height":12}},{"id":"edf35e7d-ac18-4776-9e9a-04f9b28d54a0","block_type":"box","text":"their voting rights surrender the right to dispose of their holdings from the point at which votes are","page_number":394,"box":{"x":116,"y":149,"width":728,"height":12}},{"id":"865f999c-62b1-4e07-892e-c0074a1ce173","block_type":"box","text":"submitted until after the after the shareholder meeting has occurred); v) potential difficulties in","page_number":394,"box":{"x":116,"y":165,"width":700,"height":12}},{"id":"504ec154-950e-4e74-97c7-100982e757bf","block_type":"box","text":"translating the proxy; vi) regulatory constraints; and vii) requirements to provide local agents with","page_number":394,"box":{"x":116,"y":180,"width":723,"height":12}},{"id":"e629d8fa-7443-4ca7-83b3-8b14ddbd9b5f","block_type":"box","text":"powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":394,"box":{"x":117,"y":196,"width":706,"height":12}},{"id":"871870d9-b146-44e5-a9d8-e23e3bd3c0b5","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":394,"box":{"x":116,"y":211,"width":742,"height":12}},{"id":"c8b11195-2857-4344-9a9c-ed7cbbb60d4a","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. 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We may engage more than one independent third-party voting","page_number":396,"box":{"x":117,"y":482,"width":752,"height":12}},{"id":"6f497d1a-99b0-444b-a00e-1e46abd3df50","block_type":"box","text":"service provider, in part to mitigate potential or perceived conflicts of interest at a single voting service","page_number":396,"box":{"x":116,"y":498,"width":761,"height":12}},{"id":"bccacc43-4788-45fc-bf0f-f4eb126dd858","block_type":"box","text":"provider.","page_number":396,"box":{"x":117,"y":514,"width":69,"height":11}},{"id":"ddd157ac-bfc4-4fa4-90d7-d8f71639f7df","block_type":"box","text":"Securities lending","page_number":396,"box":{"x":116,"y":544,"width":149,"height":12}},{"id":"38b09c81-eedf-42ea-9c76-fd4f5f6fc71c","block_type":"box","text":"If authorized, BlackRock acts as a securities lending agent on behalf of its clients. Securities lending is","page_number":396,"box":{"x":117,"y":575,"width":764,"height":12}},{"id":"76908985-db2b-46b7-9638-1d1f7f1db038","block_type":"box","text":"a well-regulated practice that contributes to capital market efficiency. It also enables funds to generate","page_number":396,"box":{"x":116,"y":591,"width":763,"height":12}},{"id":"17759e9e-c8dd-4fcc-adbd-21fdfb628df4","block_type":"box","text":"additional returns which in turn may allow fund providers to offset fund expenses.","page_number":396,"box":{"x":116,"y":606,"width":607,"height":12}},{"id":"3e488b30-e480-4d82-8dc4-9235c4d4caaf","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote","page_number":396,"box":{"x":116,"y":638,"width":741,"height":11}},{"id":"e7c0002e-1ce8-4aeb-8feb-a7b38334b772","block_type":"box","text":"shares on loan and may determine to recall them to allow for voting. 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Reliance upon this","page_number":398,"box":{"x":116,"y":769,"width":748,"height":12}},{"id":"b94c0c3d-ae55-419d-8380-e28f9f811ef7","block_type":"box","text":"information is at the sole discretion of the reader.","page_number":398,"box":{"x":117,"y":785,"width":361,"height":9}},{"id":"353c899b-a090-4ae3-80a7-01af5097670a","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":398,"box":{"x":117,"y":816,"width":209,"height":12}},{"id":"182e0aba-e48c-4e39-b3be-f320159d5fb2","block_type":"box","text":"©","page_number":398,"box":{"x":116,"y":846,"width":9,"height":7}},{"id":"5b11d295-cc4b-4563-ad02-a8709746d4bb","block_type":"box","text":"2025 BlackRock, Inc. All rights reserved. BLACKROCK is a trademark of BlackRock, Inc., or its","page_number":398,"box":{"x":125,"y":847,"width":712,"height":12}},{"id":"c1b58a31-f0b2-43dc-9e39-28607f9b0331","block_type":"box","text":"subsidiaries in the United States and elsewhere. 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In each jurisdiction, nomenclature varies. For ease and clarity of presentation,","page_number":399,"box":{"x":117,"y":220,"width":769,"height":12}},{"id":"bce7b627-d9a4-451a-b7aa-63001227e427","block_type":"box","text":"shares of common stock and shares of beneficial interest are referred to herein as “shares” or","page_number":399,"box":{"x":116,"y":235,"width":701,"height":10}},{"id":"a59c97e1-d490-4022-850a-b307428baa99","block_type":"box","text":"“Common Stock,” holders of shares of Common Stock are referred to as “shareholders,” the trustees","page_number":399,"box":{"x":116,"y":251,"width":752,"height":11}},{"id":"c2b361ef-8197-49e4-bfb4-78251b6b7ae2","block_type":"box","text":"or directors of each Fund are referred to as “Directors,” the boards of trustees/directors of each Fund","page_number":399,"box":{"x":116,"y":266,"width":754,"height":12}},{"id":"d5547882-2037-4f8a-9380-87edfa9cb11c","block_type":"box","text":"are referred to as the “Board of Directors” or the “Board,” BlackRock Advisors, LLC, BlackRock Fund","page_number":399,"box":{"x":116,"y":282,"width":752,"height":11}},{"id":"e6209d7c-dd9d-41c1-a82b-0268e0a4aeb9","block_type":"box","text":"Advisors or their respective affiliates is the investment adviser or manager of each Fund and is referred","page_number":399,"box":{"x":116,"y":297,"width":771,"height":12}},{"id":"3ac235c6-a4b1-43f4-b7bf-0310246cc05c","block_type":"box","text":"to herein as the “Manager” or “BlackRock,” and the investment advisory agreement or management","page_number":399,"box":{"x":116,"y":313,"width":745,"height":12}},{"id":"285a337e-2f02-4526-8c4b-25119ccc294c","block_type":"box","text":"agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":399,"box":{"x":116,"y":328,"width":722,"height":13}},{"id":"6115e6e0-75e8-479e-b290-ac5a0ca843e0","block_type":"box","text":"Articles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as","page_number":399,"box":{"x":116,"y":344,"width":765,"height":12}},{"id":"9357650d-a783-4772-9216-96d9e3579d30","block_type":"box","text":"its “charter.” The Investment Company Act of 1940, as amended, is referred to herein as the","page_number":399,"box":{"x":117,"y":359,"width":689,"height":13}},{"id":"bdcbd8d0-5838-4179-8496-81681d2fe64f","block_type":"box","text":"“Investment Company Act.” The Securities Act of 1933, as amended, is referred to herein as the","page_number":399,"box":{"x":116,"y":375,"width":719,"height":12}},{"id":"1f6134bc-93e4-4ef6-8bda-453fd6b6e6ed","block_type":"box","text":"“Securities Act.” The Securities and Exchange Commission is referred to herein as the “Commission”","page_number":399,"box":{"x":116,"y":390,"width":755,"height":13}},{"id":"91a674f5-e234-4140-950a-b63b159fb480","block_type":"box","text":"or the “SEC.”","page_number":399,"box":{"x":116,"y":406,"width":103,"height":9}},{"id":"c36754e3-c063-4a0d-bd73-1378775ed702","block_type":"box","text":"Certain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a portion of their assets in a","page_number":399,"box":{"x":117,"y":436,"width":765,"height":12}},{"id":"d75be5e1-a703-4e73-b2c5-2364447e84c9","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each,","page_number":399,"box":{"x":116,"y":452,"width":770,"height":12}},{"id":"f84ad61a-a19a-4061-b896-b9ea1331b604","block_type":"box","text":"a “Master LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. All","page_number":399,"box":{"x":116,"y":467,"width":734,"height":12}},{"id":"44eb5147-e240-4b85-8497-c226062d3e7d","block_type":"box","text":"investments are generally made at the level of the Master Portfolio. This structure is sometimes called","page_number":399,"box":{"x":117,"y":483,"width":761,"height":12}},{"id":"cbe04fb4-656f-4854-b69c-a9265d65fb12","block_type":"box","text":"a “master/feeder” structure. A Feeder Fund’s investment results will correspond directly to the","page_number":399,"box":{"x":116,"y":498,"width":700,"height":12}},{"id":"0cd48213-b725-46c2-bd07-945fa4971c79","block_type":"box","text":"investment results of the underlying Master Portfolio in which it invests. For simplicity, this SAI uses the","page_number":399,"box":{"x":117,"y":514,"width":770,"height":12}},{"id":"04dcb729-293f-4f23-ac7d-52a54238f49a","block_type":"box","text":"term “Fund” to include both a Feeder Fund and its Master Portfolio.","page_number":399,"box":{"x":116,"y":529,"width":503,"height":10}},{"id":"b0edeaea-9936-4bd1-8072-b330104b55fa","block_type":"box","text":"Certain information contained herein may not be relevant to a particular Fund.","page_number":399,"box":{"x":117,"y":560,"width":582,"height":12}},{"id":"07ae3347-8638-4861-a8bc-9220e1b0a8c2","block_type":"box","text":"Investment Risks and Considerations","page_number":399,"box":{"x":119,"y":610,"width":675,"height":23}},{"id":"3d7345dd-33cd-4ab8-94ac-a1b49b7085f6","block_type":"box","text":"Set forth below are descriptions of some of the types of investments and investment strategies that one","page_number":399,"box":{"x":116,"y":661,"width":767,"height":12}},{"id":"d425d651-1713-4073-9755-e132c1a4924a","block_type":"box","text":"or more of the Funds may use, and the risks and considerations associated with those investments","page_number":399,"box":{"x":116,"y":677,"width":735,"height":12}},{"id":"a5e9ec45-ec3f-4831-9428-c99e8e1cbf06","block_type":"box","text":"and investment strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the","page_number":399,"box":{"x":116,"y":692,"width":685,"height":12}},{"id":"4a7abb1f-ad46-4caf-b8d6-77f0f71b4cdc","block_type":"box","text":"“Investment Objective and Policies,” “Investment Objectives and Policies” or “Investment Strategies","page_number":399,"box":{"x":116,"y":708,"width":737,"height":12}},{"id":"9264f8d6-d7a4-4566-b07f-dd5cfda74d49","block_type":"box","text":"and Risks of the Fund” section, as applicable, of Part I of this SAI for further information on each","page_number":399,"box":{"x":116,"y":723,"width":714,"height":12}},{"id":"4141be71-8279-440f-953c-5c0f2a3f4106","block_type":"box","text":"Fund’s investment policies and risks. Information contained in this section about the risks and","page_number":399,"box":{"x":117,"y":739,"width":692,"height":12}},{"id":"be41be1e-c029-4299-9772-f5551bf05dcf","block_type":"box","text":"considerations associated with a Fund’s investments and/or investment strategies applies only to those","page_number":399,"box":{"x":116,"y":754,"width":765,"height":12}},{"id":"60f69d10-8991-46dc-b48a-f3b6cafb0d41","block_type":"box","text":"Funds specifically identified in Part I of this SAI as making each type of investment or using each","page_number":399,"box":{"x":117,"y":770,"width":716,"height":12}},{"id":"0cfef6be-2127-45be-8358-6e18952b5c6b","block_type":"box","text":"investment strategy (each, a “Covered Fund”). Information that does not apply to a Covered Fund does","page_number":399,"box":{"x":117,"y":785,"width":764,"height":12}},{"id":"adef3784-a7de-40d3-93dc-c278a508b973","block_type":"box","text":"not form a part of that Covered Fund’s SAI and should not be relied on by investors in that Covered","page_number":399,"box":{"x":117,"y":801,"width":735,"height":12}},{"id":"8915e544-4e76-4d07-a750-442bf61b3907","block_type":"box","text":"Fund. Only information that is clearly identified as applicable to a Covered Fund is considered to form a","page_number":399,"box":{"x":117,"y":816,"width":765,"height":12}},{"id":"7df75695-fb37-47f0-80ee-5cca91705360","block_type":"box","text":"part of that Covered Fund’s SAI.","page_number":399,"box":{"x":117,"y":832,"width":244,"height":12}},{"id":"bec2d85f-fb46-4316-992e-491aa0853c57","block_type":"box","text":"Asset-Backed Securities.","page_number":399,"box":{"x":116,"y":862,"width":200,"height":10}},{"id":"a67e5e5f-0b41-410a-8762-b478e01db209","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans,","page_number":399,"box":{"x":317,"y":862,"width":519,"height":12}},{"id":"622cf29d-baea-496c-a6f6-71b4b0fc46e9","block_type":"box","text":"installment sale contracts, credit card receivables or other assets. Asset-backed securities are","page_number":399,"box":{"x":117,"y":878,"width":702,"height":11}},{"id":"3e7940a7-796e-43b3-81ed-718ba9acc5de","block_type":"box","text":"II-1","page_number":399,"box":{"x":489,"y":909,"width":20,"height":9}},{"id":"68e39226-75cf-45dd-a88c-a420ad425f77","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":399,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"5b6ca1ab-ac7b-492f-ab6b-859d9c195a62","block_type":"box","text":"“pass-through” securities, meaning that principal and interest payments — net of expenses — made by","page_number":400,"box":{"x":116,"y":87,"width":770,"height":12}},{"id":"c58b82bc-6e10-42b6-8dd0-0f5607f9f843","block_type":"box","text":"the borrower on the underlying assets (such as credit card receivables) are passed through to a Fund.","page_number":400,"box":{"x":116,"y":102,"width":763,"height":13}},{"id":"4e46ffbd-1dab-47c6-912b-38cc16510964","block_type":"box","text":"The value of asset-backed securities, like that of traditional fixed-income securities, typically increases","page_number":400,"box":{"x":116,"y":118,"width":763,"height":12}},{"id":"642f86a0-6542-4e32-80f0-5212b644adb2","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, asset-backed securities differ","page_number":400,"box":{"x":116,"y":134,"width":770,"height":11}},{"id":"78de92a4-4d35-41bb-94e1-3edeab0f1915","block_type":"box","text":"from traditional fixed-income securities because of their potential for prepayment. The price paid by a","page_number":400,"box":{"x":116,"y":149,"width":755,"height":12}},{"id":"4f6a470d-d754-4cd6-9eac-f2ca211c261d","block_type":"box","text":"Fund for its asset-backed securities, the yield the Fund expects to receive from such securities and the","page_number":400,"box":{"x":117,"y":165,"width":767,"height":12}},{"id":"432c1ddb-1e4b-4298-b0e4-5d7eadd820be","block_type":"box","text":"average life of the securities are based on a number of factors, including the anticipated rate of","page_number":400,"box":{"x":116,"y":180,"width":709,"height":12}},{"id":"28b2782d-02ed-49b2-9b7f-63735016f8c9","block_type":"box","text":"prepayment of the underlying assets. In a period of declining interest rates, borrowers may prepay the","page_number":400,"box":{"x":117,"y":196,"width":761,"height":12}},{"id":"8c835466-9967-4f8c-907f-abb25af18c9c","block_type":"box","text":"underlying assets more quickly than anticipated, thereby reducing the yield to maturity and the average","page_number":400,"box":{"x":117,"y":211,"width":769,"height":12}},{"id":"7f53ed24-9abf-4044-a9ed-20dfdf21620b","block_type":"box","text":"life of the asset-backed securities. Moreover, when a Fund reinvests the proceeds of a prepayment in","page_number":400,"box":{"x":117,"y":227,"width":758,"height":12}},{"id":"0f4f3a58-266f-4a07-8b48-e111a1b8b4db","block_type":"box","text":"these circumstances, it will likely receive a rate of interest that is lower than the rate on the security that","page_number":400,"box":{"x":116,"y":242,"width":772,"height":12}},{"id":"d454dc8e-30db-4729-916c-296e23e30937","block_type":"box","text":"was prepaid. To the extent that a Fund purchases asset-backed securities at a premium, prepayments","page_number":400,"box":{"x":116,"y":258,"width":765,"height":12}},{"id":"5efdf77c-780f-4bfd-b812-611e9410a17f","block_type":"box","text":"may result in a loss to the extent of the premium paid. If a Fund buys such securities at a discount,","page_number":400,"box":{"x":117,"y":273,"width":736,"height":12}},{"id":"7360385d-a0e9-474a-9976-5244570e569a","block_type":"box","text":"both scheduled payments and unscheduled prepayments will increase current and total returns and","page_number":400,"box":{"x":117,"y":289,"width":742,"height":12}},{"id":"2387ea8b-654c-4599-a22d-3db87fd82125","block_type":"box","text":"unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":400,"box":{"x":117,"y":304,"width":738,"height":12}},{"id":"6c94f4b1-4971-4d9f-8f9a-6f7b08f91d05","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the","page_number":400,"box":{"x":116,"y":320,"width":772,"height":12}},{"id":"24a3aae3-4784-42be-93e1-bb937ce4b510","block_type":"box","text":"underlying assets may occur at a slower than expected rate, creating maturity extension risk. This","page_number":400,"box":{"x":117,"y":335,"width":730,"height":12}},{"id":"7d5da9fe-1fd9-4bfd-85c9-1d6385977296","block_type":"box","text":"particular risk may effectively change a security that was considered short- or intermediate-term at the","page_number":400,"box":{"x":117,"y":351,"width":762,"height":12}},{"id":"4d717993-7912-43cc-987f-17a2afad18a7","block_type":"box","text":"time of purchase into a longer term security. Since the value of longer-term securities generally","page_number":400,"box":{"x":116,"y":366,"width":710,"height":12}},{"id":"5aa9bf4d-3763-4d60-9a16-06a5c8496bf0","block_type":"box","text":"fluctuates more widely in response to changes in interest rates than does the value of shorter-term","page_number":400,"box":{"x":116,"y":382,"width":736,"height":12}},{"id":"23601a96-3775-47b0-9ad3-fcc71c140ab5","block_type":"box","text":"securities, maturity extension risk could increase the volatility of the Fund. When interest rates decline,","page_number":400,"box":{"x":116,"y":397,"width":766,"height":12}},{"id":"411ee0ea-8198-4bb6-9468-ee4750ecf6d5","block_type":"box","text":"the value of an asset-backed security with prepayment features may not increase as much as that of","page_number":400,"box":{"x":116,"y":413,"width":751,"height":12}},{"id":"2b9d0e7e-38e6-49fc-b984-d4f002de56bf","block_type":"box","text":"other fixed-income securities, and, as noted above, changes in market rates of interest may accelerate","page_number":400,"box":{"x":116,"y":428,"width":767,"height":12}},{"id":"3e82ca97-5489-42ca-864a-5a0a7e112a11","block_type":"box","text":"or retard prepayments and thus affect maturities.","page_number":400,"box":{"x":116,"y":444,"width":368,"height":12}},{"id":"006df694-129a-4706-bf6e-806d0a850cf2","block_type":"box","text":"Asset-Based Securities.","page_number":400,"box":{"x":116,"y":475,"width":190,"height":9}},{"id":"8413047e-a9de-462d-93fe-b28a943ce198","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the","page_number":400,"box":{"x":307,"y":475,"width":548,"height":12}},{"id":"af7ecc76-a51a-403c-b6f9-2d37980a1431","block_type":"box","text":"principal amount, redemption terms or conversion terms of which are related to the market price of","page_number":400,"box":{"x":117,"y":490,"width":734,"height":12}},{"id":"cf5f7914-ae50-4982-b338-1a712111750b","block_type":"box","text":"some natural resource asset such as gold bullion. These securities are referred to as “asset-based","page_number":400,"box":{"x":116,"y":506,"width":737,"height":12}},{"id":"d8d07971-50f1-475c-9632-4aaaf45a4368","block_type":"box","text":"securities.” A Fund will purchase only asset-based securities that are rated, or are issued by issuers","page_number":400,"box":{"x":116,"y":521,"width":746,"height":12}},{"id":"22eaa7a2-9cd7-442a-a3ed-1485ff8e91d8","block_type":"box","text":"that have outstanding debt obligations rated, investment grade (for example, AAA, AA, A or BBB by","page_number":400,"box":{"x":116,"y":537,"width":744,"height":12}},{"id":"f9a60c50-b99e-43f8-895c-2960b5a7eaa9","block_type":"box","text":"S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), or Baa by Moody’s Investors Service, Inc.","page_number":400,"box":{"x":116,"y":552,"width":719,"height":12}},{"id":"072dae8c-550f-45df-9bb1-968506bffb19","block_type":"box","text":"(“Moody’s”) or commercial paper rated A-1 by S&P or Prime-1 by Moody’s) or by issuers that the","page_number":400,"box":{"x":117,"y":568,"width":721,"height":12}},{"id":"34877c4b-ab29-4319-874b-6d08c413f58a","block_type":"box","text":"Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":400,"box":{"x":117,"y":583,"width":733,"height":12}},{"id":"57da7d19-b852-4f14-8680-95ea52732b42","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and","page_number":400,"box":{"x":117,"y":599,"width":766,"height":12}},{"id":"ac72cccc-eadb-4df7-801a-2f900fd46578","block_type":"box","text":"may be more likely to be downgraded than securities rated in the three highest rating categories. If an","page_number":400,"box":{"x":117,"y":614,"width":759,"height":12}},{"id":"472e50e2-dd9e-4700-9444-0a32db7f7076","block_type":"box","text":"asset-based security is backed by a bank letter of credit or other similar facility, the Manager may take","page_number":400,"box":{"x":116,"y":630,"width":764,"height":12}},{"id":"1d108f9f-c6e2-47bf-a0e0-facf0e0c6cb8","block_type":"box","text":"such backing into account in determining the creditworthiness of the issuer. While the market prices for","page_number":400,"box":{"x":116,"y":645,"width":769,"height":12}},{"id":"e7313fc0-84c5-4b31-94ac-b7ce85163be1","block_type":"box","text":"an asset-based security and the related natural resource asset generally are expected to move in the","page_number":400,"box":{"x":116,"y":661,"width":751,"height":12}},{"id":"53e90376-baef-43fd-9d36-69283fc308b7","block_type":"box","text":"same direction, there may not be perfect correlation in the two price movements. Asset-based","page_number":400,"box":{"x":116,"y":676,"width":696,"height":12}},{"id":"be9ab21c-f4d8-4e01-874c-c1f77259008b","block_type":"box","text":"securities may not be secured by a security interest in or claim on the underlying natural resource","page_number":400,"box":{"x":116,"y":692,"width":723,"height":12}},{"id":"133d8897-0747-4673-a55b-0c3b60861eaa","block_type":"box","text":"asset. The asset-based securities in which a Fund may invest may bear interest or pay preferred","page_number":400,"box":{"x":116,"y":707,"width":716,"height":12}},{"id":"5365fcd5-326e-48b8-ada3-3a9e59df5704","block_type":"box","text":"dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be","page_number":400,"box":{"x":116,"y":723,"width":738,"height":12}},{"id":"d10b3202-3be5-4210-b27b-20fb7a6267fb","block_type":"box","text":"payable at maturity in cash at the stated principal amount or, at the option of the holder, directly in a","page_number":400,"box":{"x":117,"y":738,"width":738,"height":12}},{"id":"e1b085ec-ae85-47f5-8d93-fb6b4c7cd741","block_type":"box","text":"stated amount of the asset to which it is related. In such instance, because no Fund presently intends","page_number":400,"box":{"x":116,"y":754,"width":753,"height":12}},{"id":"fd63f4ef-483f-46e5-86db-3cf92787d833","block_type":"box","text":"to invest directly in natural resource assets, a Fund would sell the asset-based security in the","page_number":400,"box":{"x":116,"y":769,"width":691,"height":12}},{"id":"21b9e151-001a-4636-bd45-e2b33a45f27e","block_type":"box","text":"secondary market, to the extent one exists, prior to maturity if the value of the stated amount of the","page_number":400,"box":{"x":116,"y":785,"width":733,"height":12}},{"id":"6d48b446-1b58-4608-a125-bf365ce20060","block_type":"box","text":"asset exceeds the stated principal amount and thereby realize the appreciation in the underlying asset.","page_number":400,"box":{"x":116,"y":800,"width":763,"height":12}},{"id":"7c11ed5b-f0dd-4e84-aaf7-50f4e347e2c0","block_type":"box","text":"Precious Metal-Related Securities.","page_number":400,"box":{"x":116,"y":831,"width":256,"height":10}},{"id":"f29068f9-9490-40a6-8b1d-82d4010fad0d","block_type":"box","text":"A Fund may invest in the equity and other securities of companies","page_number":400,"box":{"x":374,"y":831,"width":500,"height":12}},{"id":"185439b3-e260-4881-9037-a80d5df3b3cc","block_type":"box","text":"that explore for, extract, process or deal in precious metals (","page_number":400,"box":{"x":116,"y":847,"width":447,"height":12}},{"id":"40a46edb-fcdf-476e-b8bf-59fc9d017bfc","block_type":"box","text":"e.g.","page_number":400,"box":{"x":564,"y":849,"width":26,"height":10}},{"id":"b86c287f-58c1-4626-87c8-1beb64edd9d6","block_type":"box","text":", gold, silver and platinum), and in","page_number":400,"box":{"x":593,"y":847,"width":255,"height":12}},{"id":"39677917-9a2d-4c20-82da-7ee36fff56d8","block_type":"box","text":"asset-based securities indexed to the value of such metals. Such securities may be purchased when","page_number":400,"box":{"x":116,"y":862,"width":752,"height":12}},{"id":"0607476e-f525-45f5-a8b6-fc037b4e469d","block_type":"box","text":"they are believed to be attractively priced in relation to the value of a company’s precious metal-related","page_number":400,"box":{"x":116,"y":878,"width":769,"height":12}},{"id":"19af31e1-0e34-4d04-b3d6-d6b3f4668998","block_type":"box","text":"II-2","page_number":400,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"bdfda5f5-a9fa-43bf-99f3-4397ced90c7c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":400,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d7d59dd6-0885-4311-81c3-33bb61c87a81","block_type":"box","text":"assets or when the values of precious metals are expected to benefit from inflationary pressure or","page_number":401,"box":{"x":116,"y":87,"width":731,"height":12}},{"id":"9e48408b-f6e4-4717-b22c-083bb28e4a2d","block_type":"box","text":"other economic, political or financial uncertainty or instability. Based on historical experience, during","page_number":401,"box":{"x":116,"y":102,"width":746,"height":13}},{"id":"271ce74c-b4d2-47c6-a642-7131ca11a9bd","block_type":"box","text":"periods of economic or financial instability the securities of companies involved in precious metals may","page_number":401,"box":{"x":117,"y":118,"width":766,"height":12}},{"id":"c61ab4f8-1020-4010-8882-8b159b2c22d7","block_type":"box","text":"be subject to extreme price fluctuations, reflecting the high volatility of precious metal prices during","page_number":401,"box":{"x":117,"y":134,"width":736,"height":12}},{"id":"5e931bd6-3c1e-4fe6-9c84-23e686b8e751","block_type":"box","text":"such periods. In addition, the instability of precious metal prices may result in volatile earnings of","page_number":401,"box":{"x":116,"y":149,"width":721,"height":12}},{"id":"9f914001-b376-40e7-a820-a35b6662ea18","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such","page_number":401,"box":{"x":117,"y":165,"width":754,"height":12}},{"id":"2a2e85ff-7a71-4675-95d6-1fa1cf24ade3","block_type":"box","text":"companies. The major producers of gold include the Republic of South Africa, Russia, Canada, the","page_number":401,"box":{"x":116,"y":180,"width":739,"height":12}},{"id":"17a60e68-045e-4323-bd5e-fbf74a7f9eae","block_type":"box","text":"United States, Brazil and Australia. Sales of gold by Russia are largely unpredictable and often relate","page_number":401,"box":{"x":117,"y":196,"width":754,"height":12}},{"id":"64c79c33-00e6-46c3-8378-e9d0f46139c4","block_type":"box","text":"to political and economic considerations rather than to market forces. Economic, financial, social and","page_number":401,"box":{"x":116,"y":211,"width":753,"height":12}},{"id":"45a7e350-6b4c-47a5-bfb8-19882a55c23d","block_type":"box","text":"political factors within South Africa may significantly affect South African gold production.","page_number":401,"box":{"x":117,"y":227,"width":663,"height":12}},{"id":"f4bda3c1-0ab9-475f-8f44-0a1780d6369c","block_type":"box","text":"Borrowing and Leverage.","page_number":401,"box":{"x":116,"y":258,"width":201,"height":12}},{"id":"b531b4ec-d263-47b4-822a-d6ee231272d8","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or","page_number":401,"box":{"x":318,"y":258,"width":517,"height":12}},{"id":"5b5c8a34-c5c7-4095-b3a9-0133a0044f69","block_type":"box","text":"emergency purposes, including to meet redemptions or to settle securities transactions. Certain Funds","page_number":401,"box":{"x":116,"y":273,"width":765,"height":12}},{"id":"5a492c0d-0de2-4ecf-99bb-c82e8cad30ed","block_type":"box","text":"will not purchase securities at any time when borrowings exceed 5% of their total assets, except (a) to","page_number":401,"box":{"x":116,"y":289,"width":761,"height":12}},{"id":"43790ca1-2549-4bbd-8bfa-feb73e056c71","block_type":"box","text":"honor prior commitments or (b) to exercise subscription rights when outstanding borrowings have been","page_number":401,"box":{"x":117,"y":304,"width":768,"height":12}},{"id":"8eda5caf-a0f1-4f7b-9ce2-56d8f9966729","block_type":"box","text":"obtained exclusively for settlements of other securities transactions.","page_number":401,"box":{"x":116,"y":320,"width":508,"height":12}},{"id":"3d4a5e35-d954-4fa3-8037-b3f4614bf596","block_type":"box","text":"Certain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s","page_number":401,"box":{"x":117,"y":351,"width":748,"height":12}},{"id":"f7a6649e-623d-495e-bb2e-3a846bb1dfbc","block_type":"box","text":"Prospectus. The purchase of securities while borrowings are outstanding will have the effect of","page_number":401,"box":{"x":117,"y":366,"width":707,"height":12}},{"id":"7965deb3-c4ba-4d93-a9d2-44af1a86b9cd","block_type":"box","text":"leveraging the Fund. Such leveraging increases the Fund’s exposure to capital risk, and borrowed","page_number":401,"box":{"x":117,"y":382,"width":731,"height":12}},{"id":"824837fe-3300-44ee-aa91-917e89082fbb","block_type":"box","text":"funds are subject to interest costs that will reduce net income. The use of leverage by a Fund creates","page_number":401,"box":{"x":116,"y":397,"width":757,"height":12}},{"id":"281e7edb-005f-43f0-b716-8ea1dc58617e","block_type":"box","text":"an opportunity for greater total return, but, at the same time, creates special risks. For example,","page_number":401,"box":{"x":116,"y":413,"width":714,"height":12}},{"id":"347d94a5-1f3b-472a-8d53-cc0d82bd1392","block_type":"box","text":"leveraging may exaggerate changes in the net asset value (“NAV”) of Fund shares and in the yield on","page_number":401,"box":{"x":117,"y":428,"width":758,"height":12}},{"id":"f357adb4-228b-4835-a588-679e8312873b","block_type":"box","text":"the Fund’s portfolio. Although the principal of such borrowings will be fixed, the Fund’s assets may","page_number":401,"box":{"x":116,"y":444,"width":734,"height":12}},{"id":"dc4e4fcb-0f08-4828-918f-2c4cf38a2478","block_type":"box","text":"change in value during the time the borrowings are outstanding. Borrowings will create interest","page_number":401,"box":{"x":116,"y":459,"width":707,"height":12}},{"id":"da5304d0-1c20-4965-810b-7f0b34139f4d","block_type":"box","text":"expenses for the Fund that can exceed the income from the assets purchased with the borrowings. To","page_number":401,"box":{"x":116,"y":475,"width":764,"height":12}},{"id":"fdaf11f1-7f56-4f5e-8d94-b9612034c30b","block_type":"box","text":"the extent the income or capital appreciation derived from securities purchased with borrowed funds","page_number":401,"box":{"x":116,"y":490,"width":747,"height":12}},{"id":"265a85e8-1490-4003-91c6-39802ae6d559","block_type":"box","text":"exceeds the interest the Fund will have to pay on the borrowings, the Fund’s return will be greater than","page_number":401,"box":{"x":116,"y":506,"width":768,"height":12}},{"id":"2a804597-c123-4a51-bd9c-8fd9fe856408","block_type":"box","text":"if leverage had not been used. Conversely, if the income or capital appreciation from the securities","page_number":401,"box":{"x":117,"y":521,"width":735,"height":12}},{"id":"35e81e0e-1699-43b6-b1df-5d2e2dca4c7f","block_type":"box","text":"purchased with such borrowed funds is not sufficient to cover the cost of borrowing, the return to the","page_number":401,"box":{"x":117,"y":537,"width":748,"height":12}},{"id":"871bcd19-d22c-4057-b633-99c290ebdb83","block_type":"box","text":"Fund will be less than if leverage had not been used and, therefore, the amount available for","page_number":401,"box":{"x":117,"y":552,"width":690,"height":12}},{"id":"1cd069d5-65f2-4573-a30b-bfc87ad7d3a0","block_type":"box","text":"distribution to shareholders as dividends will be reduced. In the latter case, the Manager in its best","page_number":401,"box":{"x":116,"y":568,"width":735,"height":12}},{"id":"539921b8-5f3e-4778-9ccc-f4e1eaaad4eb","block_type":"box","text":"judgment nevertheless may determine to maintain the Fund’s leveraged position if it expects that the","page_number":401,"box":{"x":115,"y":583,"width":752,"height":12}},{"id":"cd6ccac3-b8fd-4be3-b081-66bd668f12de","block_type":"box","text":"benefits to the Fund’s shareholders of maintaining the leveraged position will outweigh the current","page_number":401,"box":{"x":117,"y":599,"width":730,"height":12}},{"id":"6a085ea0-4465-4e6c-a49e-461dccf9a1df","block_type":"box","text":"reduced return.","page_number":401,"box":{"x":117,"y":614,"width":117,"height":10}},{"id":"f1547aec-a4d8-4576-9205-e1fb5bacdc93","block_type":"box","text":"Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit","page_number":401,"box":{"x":117,"y":645,"width":727,"height":12}},{"id":"28868623-7061-48a0-bca4-1b0cf707d839","block_type":"box","text":"agreements relating to asset coverage, portfolio composition requirements and other matters. It is not","page_number":401,"box":{"x":116,"y":661,"width":753,"height":12}},{"id":"be98c0a5-9d79-46e8-b67c-0ecc102eebe8","block_type":"box","text":"anticipated that observance of such covenants would impede the Manager from managing a Fund’s","page_number":401,"box":{"x":116,"y":676,"width":739,"height":12}},{"id":"0b10e5f6-d735-4de1-9484-6ac74c12d0f6","block_type":"box","text":"portfolio in accordance with the Fund’s investment objectives and policies. However, a breach of any","page_number":401,"box":{"x":117,"y":692,"width":746,"height":12}},{"id":"79658e0d-dc92-4b83-b41e-0ba2a79e1d67","block_type":"box","text":"such covenants not cured within the specified cure period may result in acceleration of outstanding","page_number":401,"box":{"x":116,"y":707,"width":732,"height":12}},{"id":"bb837d2e-e387-419c-8d79-d255f68f652e","block_type":"box","text":"indebtedness and require the Fund to dispose of portfolio investments at a time when it may be","page_number":401,"box":{"x":117,"y":723,"width":706,"height":12}},{"id":"1977a567-833c-46b3-a1d1-10340dca5668","block_type":"box","text":"disadvantageous to do so.","page_number":401,"box":{"x":116,"y":738,"width":195,"height":12}},{"id":"a2fc39ad-e40e-44e8-a36d-8528bb3bc736","block_type":"box","text":"Each Fund may at times borrow from affiliates of the Manager, provided that the terms of such","page_number":401,"box":{"x":117,"y":769,"width":699,"height":12}},{"id":"6b8770fe-ee10-4186-90ca-e9b53cad3132","block_type":"box","text":"borrowings are no less favorable than those available from comparable sources of funds in the","page_number":401,"box":{"x":117,"y":785,"width":701,"height":12}},{"id":"6efa2cd3-f981-4bae-9a54-6deb69b54708","block_type":"box","text":"marketplace.","page_number":401,"box":{"x":117,"y":800,"width":94,"height":12}},{"id":"c79dfa1f-f525-4f77-914a-add5715c3407","block_type":"box","text":"Cash Management.","page_number":401,"box":{"x":117,"y":831,"width":151,"height":12}},{"id":"0c40e315-1665-45be-bc62-06d64e09ee6b","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide","page_number":401,"box":{"x":269,"y":831,"width":578,"height":12}},{"id":"e07f9e8f-3b2f-4bb3-9b74-90c5ab7d596c","block_type":"box","text":"liquidity necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if","page_number":401,"box":{"x":117,"y":847,"width":756,"height":12}},{"id":"115b655a-48b3-41cc-a8c9-2b1b6c6379a2","block_type":"box","text":"considered appropriate in the opinion of the Manager, a portion of a Fund’s assets may be invested in","page_number":401,"box":{"x":116,"y":862,"width":760,"height":12}},{"id":"cf50f584-a0f6-4c2b-a012-3b6b264a5957","block_type":"box","text":"certain types of instruments with remaining maturities of 397 days or less for liquidity purposes. Such","page_number":401,"box":{"x":116,"y":878,"width":754,"height":12}},{"id":"caf268c1-c2e5-422a-bc0b-dfba133ae35a","block_type":"box","text":"II-3","page_number":401,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"da21e4ad-8576-4ad6-b298-9484d4bc4e39","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":401,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"863cc6db-3cd7-4f65-8818-5e6c7aeb01e0","block_type":"box","text":"instruments would consist of: (i) obligations of the U.S. Government, its agencies, instrumentalities,","page_number":402,"box":{"x":117,"y":87,"width":740,"height":12}},{"id":"51f6e68b-fae9-42c4-941a-d0ad56093d57","block_type":"box","text":"authorities or political subdivisions (“U.S. Government Securities”); (ii) other fixed-income securities","page_number":402,"box":{"x":116,"y":102,"width":742,"height":13}},{"id":"1354fbb9-6497-40d1-9690-d5746b437e7f","block_type":"box","text":"rated Aa or higher by Moody’s or AA or higher by S&P or, if unrated, of comparable quality in the","page_number":402,"box":{"x":117,"y":118,"width":721,"height":12}},{"id":"ab23658a-b8e7-46b9-b487-ab29081b3124","block_type":"box","text":"opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable certificates of","page_number":402,"box":{"x":116,"y":134,"width":768,"height":12}},{"id":"08e24b08-5894-403b-8814-dd8e7e60aab0","block_type":"box","text":"deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":402,"box":{"x":116,"y":149,"width":730,"height":12}},{"id":"2beaee03-1e57-4590-93e5-d1fa0070cdb5","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the","page_number":402,"box":{"x":117,"y":165,"width":718,"height":12}},{"id":"6a8a08e1-6de8-4403-9162-69d72cf12810","block_type":"box","text":"issuer’s parent must have outstanding debt rated Aa or higher by Moody’s or AA or higher by S&P or","page_number":402,"box":{"x":117,"y":180,"width":752,"height":12}},{"id":"0e748337-2e76-41ae-b071-2c4ea59efb83","block_type":"box","text":"outstanding commercial paper, bank obligations or other short-term obligations rated Prime-1 by","page_number":402,"box":{"x":116,"y":196,"width":719,"height":12}},{"id":"45d0841b-0d2b-4aad-abd8-9ed05f8817f8","block_type":"box","text":"Moody’s or A-1 by S&P; or, if no such ratings are available, the instrument must be of comparable","page_number":402,"box":{"x":117,"y":211,"width":731,"height":12}},{"id":"cfa43306-483c-4323-91e7-cac676136cbd","block_type":"box","text":"quality in the opinion of the Manager. For more information on money market instruments, see “Money","page_number":402,"box":{"x":116,"y":227,"width":765,"height":12}},{"id":"1c2de10a-be6e-47e5-bdaa-4d98e1d7fd4a","block_type":"box","text":"Market Securities” below.","page_number":402,"box":{"x":117,"y":242,"width":192,"height":10}},{"id":"c976604c-bce0-4809-b6b7-18bba1c1409f","block_type":"box","text":"Collateralized Debt Obligations.","page_number":402,"box":{"x":117,"y":273,"width":251,"height":12}},{"id":"4410e373-c023-4337-b586-4a9c4b10c8ec","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations","page_number":402,"box":{"x":369,"y":273,"width":444,"height":12}},{"id":"57c6b55d-21ec-4f92-94f3-0868e1a3b5f1","block_type":"box","text":"(“CDOs”), which include collateralized bond obligations (“CBOs”), collateralized loan obligations","page_number":402,"box":{"x":117,"y":289,"width":713,"height":12}},{"id":"a17b52ce-95ac-47c4-a200-d57c3c2955f6","block_type":"box","text":"(“CLOs”) and other similarly structured securities. CDOs are types of asset-backed securities. A CBO","page_number":402,"box":{"x":117,"y":304,"width":756,"height":12}},{"id":"89884b7a-db16-44e6-8a92-0b631aff3b82","block_type":"box","text":"is ordinarily issued by a trust or other special purpose entity (“SPE”) and is typically backed by a","page_number":402,"box":{"x":117,"y":320,"width":716,"height":12}},{"id":"97968345-eb35-40f5-8284-35ecbc5cf3ea","block_type":"box","text":"diversified pool of fixed-income securities (which may include high risk, below investment grade","page_number":402,"box":{"x":116,"y":335,"width":713,"height":12}},{"id":"b3b02fe4-9245-4b1b-8e39-2a89d07892e3","block_type":"box","text":"securities) held by such issuer. A CLO is ordinarily issued by a trust or other SPE and is typically","page_number":402,"box":{"x":116,"y":351,"width":722,"height":12}},{"id":"4da25d11-1495-4000-9886-8487f81fd22e","block_type":"box","text":"collateralized by a pool of loans, which may include, among others, domestic and non-U.S. senior","page_number":402,"box":{"x":116,"y":366,"width":729,"height":12}},{"id":"6b5d3c84-7a50-48cd-a024-8a3c955ed7ab","block_type":"box","text":"secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be","page_number":402,"box":{"x":116,"y":382,"width":756,"height":12}},{"id":"9410996e-feed-4335-b567-fedf5a2c04bd","block_type":"box","text":"rated below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO","page_number":402,"box":{"x":117,"y":397,"width":757,"height":12}},{"id":"b319ad09-20e2-4541-bc41-d81cf1bb4285","block_type":"box","text":"organized outside of the United States may not be deemed to be foreign securities if the CLO is","page_number":402,"box":{"x":116,"y":413,"width":715,"height":12}},{"id":"e8646c73-b77f-4e7e-ae4b-fceff5f3cd4c","block_type":"box","text":"collateralized by a pool of loans, a substantial portion of which are U.S. loans. Although certain CDOs","page_number":402,"box":{"x":116,"y":428,"width":758,"height":12}},{"id":"ed35f138-740f-4b87-b088-1f0ebd42ecea","block_type":"box","text":"may benefit from credit enhancement in the form of a senior-subordinate structure, over","page_number":402,"box":{"x":117,"y":444,"width":655,"height":12}},{"id":"e86c386b-2f68-45e4-9985-df80e8177bcc","block_type":"box","text":"collateralization or bond insurance, such enhancement may not always be present, and may fail to","page_number":402,"box":{"x":116,"y":459,"width":735,"height":12}},{"id":"6e396ce0-efcd-46cf-bd7c-600e4f3dd7db","block_type":"box","text":"protect a Fund against the risk of loss on default of the collateral. Certain CDO issuers may use","page_number":402,"box":{"x":117,"y":475,"width":713,"height":12}},{"id":"9b659a77-870b-473c-bdcf-897e2e653f03","block_type":"box","text":"derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly,","page_number":402,"box":{"x":116,"y":490,"width":758,"height":12}},{"id":"6dc1f2b5-3f7f-4f26-8328-a2431ea37ca4","block_type":"box","text":"which entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge","page_number":402,"box":{"x":116,"y":506,"width":742,"height":12}},{"id":"41413009-2e03-4395-9c8b-cc4929c8a4c4","block_type":"box","text":"management fees and administrative expenses, which are in addition to those of a Fund.","page_number":402,"box":{"x":117,"y":521,"width":664,"height":12}},{"id":"2732ee91-0c65-4a56-b68e-01e42955a996","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called","page_number":402,"box":{"x":117,"y":552,"width":724,"height":12}},{"id":"dd91bad1-6045-4979-b53e-d4de53aaa168","block_type":"box","text":"tranches, varying in risk and yield. The riskiest portion is the “equity” tranche, which bears the first loss","page_number":402,"box":{"x":116,"y":568,"width":765,"height":12}},{"id":"69824454-7859-44f6-bdc6-976c7b6ab821","block_type":"box","text":"from defaults from the bonds or loans in the SPE and serves to protect the other, more senior tranches","page_number":402,"box":{"x":116,"y":583,"width":768,"height":12}},{"id":"53abb7b8-bc23-4cde-9db0-c28a172a1471","block_type":"box","text":"from default (though such protection is not complete). Since it is partially protected from defaults, a","page_number":402,"box":{"x":116,"y":599,"width":737,"height":12}},{"id":"70cd7aea-88e3-49a5-9878-6d6d582ac9df","block_type":"box","text":"senior tranche from a CBO or CLO typically has higher ratings and lower yields than its underlying","page_number":402,"box":{"x":116,"y":614,"width":733,"height":12}},{"id":"1996c02c-f1e8-404d-9f1a-10c0ace7a099","block_type":"box","text":"securities, and may be rated investment grade. Despite the protection from the equity tranche, CBO or","page_number":402,"box":{"x":116,"y":630,"width":765,"height":12}},{"id":"638b82e3-f062-46bf-b76b-642307a430b3","block_type":"box","text":"CLO tranches can experience substantial losses due to actual defaults, downgrades of the underlying","page_number":402,"box":{"x":117,"y":645,"width":758,"height":12}},{"id":"2aa1d0e8-616c-4ab3-a6eb-597aa3f538fb","block_type":"box","text":"collateral by rating agencies, forced liquidation of the collateral pool due to a failure of coverage tests,","page_number":402,"box":{"x":116,"y":661,"width":752,"height":12}},{"id":"6e2d6045-c9f5-478c-a31f-f1c33acdffb4","block_type":"box","text":"increased sensitivity to defaults due to collateral default and disappearance of protecting tranches,","page_number":402,"box":{"x":117,"y":676,"width":728,"height":12}},{"id":"757df4e0-2426-4a02-b946-a7d1e5ecfac2","block_type":"box","text":"market anticipation of defaults as well as investor aversion to CBO or CLO securities as a class.","page_number":402,"box":{"x":117,"y":692,"width":710,"height":12}},{"id":"31efb0b4-a9a7-4cb0-89c2-af4c039a4ffb","block_type":"box","text":"Interest on certain tranches of a CDO may be paid in kind or deferred and capitalized (paid in the form","page_number":402,"box":{"x":117,"y":707,"width":757,"height":12}},{"id":"47f96d57-d031-4df6-85d8-d6b22e0ef234","block_type":"box","text":"of obligations of the same type rather than cash), which involves continued exposure to default risk","page_number":402,"box":{"x":116,"y":723,"width":734,"height":12}},{"id":"6630c151-cb37-41e0-bdac-88601046d8b2","block_type":"box","text":"with respect to such payments.","page_number":402,"box":{"x":116,"y":738,"width":229,"height":12}},{"id":"f8ba52ef-bc86-4359-8e37-7558ace3432d","block_type":"box","text":"The risks of an investment in a CDO depend largely on the type of the collateral securities and the","page_number":402,"box":{"x":116,"y":769,"width":728,"height":12}},{"id":"6615e431-dab2-435b-91df-0d2c3b708df0","block_type":"box","text":"class of the CDO in which a Fund invests. Normally, CBOs, CLOs and other CDOs are privately","page_number":402,"box":{"x":116,"y":785,"width":712,"height":12}},{"id":"b6d97ef8-6a1a-4b00-bb90-dfbd8e69b5eb","block_type":"box","text":"offered and sold, and thus are not registered under the securities laws. However, an active dealer","page_number":402,"box":{"x":116,"y":800,"width":725,"height":12}},{"id":"2aeb3bcb-711d-4d83-acfe-b4887b83c1fc","block_type":"box","text":"market may exist for CDOs, allowing a CDO to qualify for Rule 144A transactions. In addition to the","page_number":402,"box":{"x":117,"y":816,"width":736,"height":12}},{"id":"70f2bb2c-85e4-42a4-98df-48c9eb71a64b","block_type":"box","text":"normal risks associated with fixed-income securities and asset-backed securities generally discussed","page_number":402,"box":{"x":117,"y":831,"width":755,"height":12}},{"id":"d6387283-0297-47e5-9965-3cfc9f6fce8d","block_type":"box","text":"elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the possibility that","page_number":402,"box":{"x":116,"y":847,"width":742,"height":12}},{"id":"b9839fe8-4b9f-460b-9e2a-e2f6ec9a0bab","block_type":"box","text":"distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":402,"box":{"x":116,"y":862,"width":756,"height":12}},{"id":"fd895afd-9e7d-4a9f-836a-73ba729610ab","block_type":"box","text":"risk that the collateral may default or decline in value or be downgraded, if rated by a nationally","page_number":402,"box":{"x":117,"y":878,"width":708,"height":12}},{"id":"948aeee3-2e82-4c36-aa2e-1959c59d5d6c","block_type":"box","text":"II-4","page_number":402,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"4c2d4e37-2b3d-47ce-b1df-cf70da963dfd","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":402,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d48713a6-e154-4d96-93a5-859a29ddd17d","block_type":"box","text":"recognized statistical rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that","page_number":403,"box":{"x":117,"y":87,"width":754,"height":12}},{"id":"01812827-934d-4faa-9407-3a19641837d9","block_type":"box","text":"are subordinate to other tranches; (iv) the structure and complexity of the transaction and the legal","page_number":403,"box":{"x":116,"y":102,"width":736,"height":13}},{"id":"e3533b3d-38d5-4829-b033-8df51f7f57dd","block_type":"box","text":"documents could lead to disputes among investors regarding the characterization of proceeds; (v) the","page_number":403,"box":{"x":116,"y":118,"width":760,"height":12}},{"id":"4acbb8be-7d52-41c2-8fda-291c6790a07b","block_type":"box","text":"investment return achieved by the Fund could be significantly different than those predicted by financial","page_number":403,"box":{"x":117,"y":134,"width":771,"height":12}},{"id":"0e9d4294-e25e-49e7-8f83-56af3c3d3ad5","block_type":"box","text":"models; (vi) the lack of a readily available secondary market for CDOs; (vii) the risk of forced “fire sale”","page_number":403,"box":{"x":117,"y":149,"width":765,"height":12}},{"id":"8e1cdff3-7845-4edd-ba17-ac4086bd5d26","block_type":"box","text":"liquidation due to technical defaults such as coverage test failures; and (viii) the CDO’s manager may","page_number":403,"box":{"x":117,"y":165,"width":756,"height":12}},{"id":"5fe7aa9d-3997-4f73-869b-f9f858dd22b5","block_type":"box","text":"perform poorly.","page_number":403,"box":{"x":117,"y":180,"width":117,"height":12}},{"id":"cbf47b6f-9985-4248-99b9-d3236d8ee448","block_type":"box","text":"Commercial Paper.","page_number":403,"box":{"x":117,"y":211,"width":150,"height":12}},{"id":"f1ab7638-fdf6-44ff-ab1d-eb46d6d802d5","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable","page_number":403,"box":{"x":268,"y":211,"width":607,"height":12}},{"id":"76645bb1-8eb3-42d5-87b4-89b722034a4c","block_type":"box","text":"by each Fund includes “Section 4(a)(2) paper,” a term that includes debt obligations issued in reliance","page_number":403,"box":{"x":117,"y":227,"width":760,"height":12}},{"id":"b59a63a4-06bc-45e4-b2d5-fea8b38c59bb","block_type":"box","text":"on the “private placement” exemption from registration afforded by Section 4(a)(2) of the Securities","page_number":403,"box":{"x":116,"y":242,"width":739,"height":12}},{"id":"2d3ef96e-0e34-4189-a349-9628c86e1d7e","block_type":"box","text":"Act. Section 4(a)(2) paper is restricted as to disposition under the Federal securities laws, and is","page_number":403,"box":{"x":116,"y":258,"width":719,"height":12}},{"id":"9df1c7f8-42f5-483b-88d4-c8446f958dbf","block_type":"box","text":"frequently sold (and resold) to institutional investors such as the Fund through or with the assistance of","page_number":403,"box":{"x":116,"y":273,"width":769,"height":12}},{"id":"496ae5a6-132e-489d-a7e3-7d260d2d3ed6","block_type":"box","text":"investment dealers who make a market in the Section 4(a)(2) paper, thereby providing liquidity. Certain","page_number":403,"box":{"x":117,"y":289,"width":769,"height":12}},{"id":"bb480324-6b9f-4bfa-91b1-278396ba1b0a","block_type":"box","text":"transactions in Section 4(a)(2) paper may qualify for the registration exemption provided in Rule 144A","page_number":403,"box":{"x":116,"y":304,"width":759,"height":12}},{"id":"e5446da9-3bc6-47d3-a83b-f910d7307bdc","block_type":"box","text":"under the Securities Act. Most Funds can purchase commercial paper rated (at the time of purchase)","page_number":403,"box":{"x":117,"y":320,"width":754,"height":12}},{"id":"c7eecabd-cd0e-46b1-ad30-b216816477bd","block_type":"box","text":"“A-1” by S&P or “Prime-1” by Moody’s or when deemed advisable by a Fund’s Manager or sub-adviser,","page_number":403,"box":{"x":116,"y":335,"width":772,"height":12}},{"id":"76b9e64f-aae4-42c0-8692-9324e776efb5","block_type":"box","text":"“high quality” issues rated “A-2”, “Prime-2” or “F-2” by S&P, Moody’s or Fitch, respectively.","page_number":403,"box":{"x":116,"y":351,"width":675,"height":12}},{"id":"32ef7dfb-ebe5-4088-8902-9a6e79200ca0","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all","page_number":403,"box":{"x":117,"y":382,"width":740,"height":12}},{"id":"a9eadfa0-0f4f-45ce-af0e-4689e8c65953","block_type":"box","text":"fixed income securities, commercial paper prices are susceptible to fluctuations in interest rates. If","page_number":403,"box":{"x":116,"y":397,"width":732,"height":12}},{"id":"71275e44-d688-4b2b-8d17-caea6728373c","block_type":"box","text":"interest rates rise, commercial paper prices will decline and vice versa. However, the short-term nature","page_number":403,"box":{"x":117,"y":413,"width":767,"height":12}},{"id":"e33732ec-53fc-436f-8c7c-d746d117902f","block_type":"box","text":"of a commercial paper investment generally makes it less susceptible to volatility than many other fixed","page_number":403,"box":{"x":116,"y":428,"width":771,"height":12}},{"id":"163c2c50-9675-4304-8c1c-9f938b130ed5","block_type":"box","text":"income securities because interest rate risk typically increases as maturity lengths increase.","page_number":403,"box":{"x":117,"y":444,"width":686,"height":12}},{"id":"470d3bbb-9bbf-4399-8997-6d5b730bdfdb","block_type":"box","text":"Commercial paper tends to yield smaller returns than longer-term corporate debt because securities","page_number":403,"box":{"x":117,"y":459,"width":746,"height":12}},{"id":"878da5e3-8870-47ec-b61c-dc0ac2785e6c","block_type":"box","text":"with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":403,"box":{"x":116,"y":475,"width":686,"height":12}},{"id":"e8725dd1-07ef-42cd-acbc-73766d2d64ec","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":403,"box":{"x":117,"y":506,"width":535,"height":12}},{"id":"4d7a3fab-01c9-4cc6-bddf-99e34b4efd3f","block_type":"box","text":"Certain Funds seek to gain","page_number":403,"box":{"x":653,"y":506,"width":210,"height":12}},{"id":"b718d1f1-2728-43a5-bf2b-cc1477932c5a","block_type":"box","text":"exposure to the commodities markets primarily through investments in hybrid instruments. Hybrid","page_number":403,"box":{"x":116,"y":521,"width":727,"height":12}},{"id":"2d0dbe31-f60f-465d-a765-c84a0dc8b20f","block_type":"box","text":"instruments are either equity or debt derivative securities with one or more commodity-dependent","page_number":403,"box":{"x":117,"y":537,"width":727,"height":12}},{"id":"fed2c571-4e51-46fa-a35f-49d5d4a8b34a","block_type":"box","text":"components that have payment features similar to a commodity futures contract, a commodity option","page_number":403,"box":{"x":116,"y":552,"width":753,"height":12}},{"id":"b1ed14bb-c335-43f1-a36a-20312ef5e11c","block_type":"box","text":"contract, or a combination of both. Therefore, these instruments are “commodity-linked.” They are","page_number":403,"box":{"x":116,"y":568,"width":731,"height":12}},{"id":"d8f6cc85-9093-4c4f-9a26-17feada7fa5b","block_type":"box","text":"considered “hybrid” instruments because they have both commodity-like and security-like","page_number":403,"box":{"x":116,"y":583,"width":667,"height":12}},{"id":"c7c86e7a-684f-4a49-9aa0-2722985a3329","block_type":"box","text":"characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":403,"box":{"x":116,"y":599,"width":738,"height":12}},{"id":"3dcb29a9-aae6-43f4-b872-e04c5fd2c9f4","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable","page_number":403,"box":{"x":116,"y":614,"width":766,"height":12}},{"id":"a9b11475-a521-449d-944f-77b3639ac7bf","block_type":"box","text":"economic variable.","page_number":403,"box":{"x":116,"y":630,"width":145,"height":9}},{"id":"b19cd067-6ee9-480b-bf6f-119086c8d28e","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than","page_number":403,"box":{"x":116,"y":661,"width":680,"height":12}},{"id":"f06dd534-6029-4fc1-934d-6f78b8896c79","block_type":"box","text":"investments in traditional equity and debt securities when the value of those traditional securities is","page_number":403,"box":{"x":117,"y":676,"width":731,"height":12}},{"id":"0f39d1fe-c4a5-4af1-9884-e07b2b4fbf95","block_type":"box","text":"declining due to adverse economic conditions. As an example, during periods of rising inflation, debt","page_number":403,"box":{"x":116,"y":692,"width":744,"height":12}},{"id":"6fcf31e0-df9a-4869-a4e3-83ed0a689df8","block_type":"box","text":"securities have historically tended to decline in value due to the general increase in prevailing interest","page_number":403,"box":{"x":116,"y":707,"width":753,"height":12}},{"id":"d2ff2d57-b0de-4e45-8567-aa6f9be075d8","block_type":"box","text":"rates. Conversely, during those same periods of rising inflation, the prices of certain commodities, such","page_number":403,"box":{"x":117,"y":723,"width":763,"height":12}},{"id":"15f8683b-e55b-43c3-8800-849778cc4a4d","block_type":"box","text":"as oil and metals, have historically tended to increase. Of course, there cannot be any guarantee that","page_number":403,"box":{"x":116,"y":738,"width":752,"height":12}},{"id":"d9583d8a-ada4-408a-b26b-1df00aecde9d","block_type":"box","text":"these investments will perform in that manner in the future, and at certain times the price movements","page_number":403,"box":{"x":116,"y":754,"width":749,"height":12}},{"id":"1883acb0-5956-44c7-bcfc-db0ceadaee7f","block_type":"box","text":"of commodity-linked instruments have been parallel to those of debt and equity securities.","page_number":403,"box":{"x":116,"y":769,"width":665,"height":12}},{"id":"cd3f125b-b081-4e22-bee2-31621d8bfdcc","block_type":"box","text":"Commodities have historically tended to increase and decrease in value during different parts of the","page_number":403,"box":{"x":117,"y":785,"width":739,"height":12}},{"id":"8cff7c3b-2635-441d-9c14-cb9da25e91fd","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in","page_number":403,"box":{"x":117,"y":800,"width":753,"height":12}},{"id":"6cdc9b8f-aa69-45c2-a9c2-971cb25dc67f","block_type":"box","text":"tandem with the prices of financial assets and thus may not provide overall portfolio diversification","page_number":403,"box":{"x":116,"y":816,"width":725,"height":12}},{"id":"fe196c29-665e-4374-9812-75951ebc31c8","block_type":"box","text":"benefits. Under favorable economic conditions, the Fund’s investments may be expected to under","page_number":403,"box":{"x":117,"y":831,"width":731,"height":12}},{"id":"15b9c3f6-ea5b-4153-af59-a850701a7021","block_type":"box","text":"perform an investment in traditional securities. Over the long term, the returns on the Fund’s","page_number":403,"box":{"x":117,"y":847,"width":688,"height":12}},{"id":"f144e5bb-001c-402b-86ae-69d1859396c3","block_type":"box","text":"investments are expected to exhibit low or negative correlation with stocks and bonds.","page_number":403,"box":{"x":117,"y":862,"width":643,"height":12}},{"id":"f1019590-915c-4f55-a652-0105e5f05b1c","block_type":"box","text":"II-5","page_number":403,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"8865f770-33b1-4421-afcf-e3cf4d5513b7","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":403,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"bd1c4be0-8a74-4c97-b371-2a2f2e58dda0","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":404,"box":{"x":117,"y":87,"width":222,"height":12}},{"id":"91d8edfb-c793-4659-b880-f2c0c761ecb0","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion","page_number":404,"box":{"x":341,"y":87,"width":546,"height":12}},{"id":"dab72b02-518b-412b-a77b-e853ddcfca5e","block_type":"box","text":"from regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid","page_number":404,"box":{"x":116,"y":102,"width":761,"height":13}},{"id":"fe2e4ec1-6eba-4be4-9a5e-7d08f575e3a4","block_type":"box","text":"instrument that qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid","page_number":404,"box":{"x":117,"y":118,"width":762,"height":12}},{"id":"e55d3878-ca81-4e9b-a86b-198e76b2493c","block_type":"box","text":"instrument is considered to be predominantly a security if (a) the issuer of the hybrid instrument","page_number":404,"box":{"x":117,"y":134,"width":712,"height":12}},{"id":"68e72d0f-a135-4fc7-8595-be05674109a4","block_type":"box","text":"receives payment in full of the purchase price of the hybrid instrument, substantially","page_number":404,"box":{"x":117,"y":149,"width":624,"height":12}},{"id":"9ce9f25d-3a15-49ba-8448-1226eee04477","block_type":"box","text":"contemporaneously with delivery of the hybrid instrument; (b) the purchaser or holder of the hybrid","page_number":404,"box":{"x":116,"y":165,"width":735,"height":12}},{"id":"f14d9753-6711-42ca-b7d8-e3ebdd947b81","block_type":"box","text":"instrument is not required to make any payment to the issuer in addition to the purchase price paid","page_number":404,"box":{"x":117,"y":180,"width":735,"height":12}},{"id":"4d3ed8e0-61df-4e2d-975d-0bdbe0266f34","block_type":"box","text":"under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the","page_number":404,"box":{"x":117,"y":196,"width":743,"height":12}},{"id":"aec0958a-a613-4e85-adec-8e2ba68f8f17","block_type":"box","text":"hybrid instrument or at maturity; (c) the issuer of the hybrid instrument is not subject by the terms of the","page_number":404,"box":{"x":117,"y":211,"width":770,"height":12}},{"id":"35f9da1c-9c80-4012-b7ab-97c7d0528074","block_type":"box","text":"instrument to mark-to-market margining requirements; and (d) the hybrid instrument is not marketed as","page_number":404,"box":{"x":117,"y":227,"width":768,"height":12}},{"id":"395af5df-d18d-4f00-af49-95f256df1a90","block_type":"box","text":"a contract of sale of a commodity for future delivery (or option on such a contract) subject to applicable","page_number":404,"box":{"x":116,"y":242,"width":768,"height":12}},{"id":"25e16b58-b68c-468f-b9a0-881967e862fb","block_type":"box","text":"provisions of the Commodity Exchange Act. Hybrid instruments may be principal protected, partially","page_number":404,"box":{"x":117,"y":258,"width":743,"height":12}},{"id":"8de3f632-e119-4a23-b9ec-b1140964dcab","block_type":"box","text":"protected, or offer no principal protection. A principal protected hybrid instrument means that the issuer","page_number":404,"box":{"x":117,"y":273,"width":768,"height":12}},{"id":"65decf2e-3fcf-4ac6-9a2a-9f83ff1223a5","block_type":"box","text":"will pay, at a minimum, the par value of the note at maturity. Therefore, if the commodity value to which","page_number":404,"box":{"x":116,"y":289,"width":770,"height":12}},{"id":"e53f9f39-87f4-44d1-bc47-109c07d6bd72","block_type":"box","text":"the hybrid instrument is linked declines over the life of the note, the Fund will receive at maturity the","page_number":404,"box":{"x":116,"y":304,"width":744,"height":12}},{"id":"983dd164-ef98-486c-a824-2486d262889a","block_type":"box","text":"face or stated value of the note. With a principal protected hybrid instrument, the Fund will receive at","page_number":404,"box":{"x":116,"y":320,"width":750,"height":12}},{"id":"69907d7c-704e-4483-b4ae-93dfe2da77e8","block_type":"box","text":"maturity the greater of the par value of the note or the increase in its value based on the underlying","page_number":404,"box":{"x":117,"y":335,"width":739,"height":12}},{"id":"497c3c01-1120-471c-96d5-1214e44beeff","block_type":"box","text":"commodity or index. This protection is, in effect, an option whose value is subject to the volatility and","page_number":404,"box":{"x":116,"y":351,"width":751,"height":12}},{"id":"59d7f795-a3f6-4c53-ba85-772050f7bf22","block_type":"box","text":"price level of the underlying commodity. The Manager’s decision whether to use principal protection","page_number":404,"box":{"x":117,"y":366,"width":743,"height":12}},{"id":"73244a64-8f64-44dd-b17a-87aeafce4691","block_type":"box","text":"depends in part on the cost of the protection. In addition, the protection feature depends upon the","page_number":404,"box":{"x":116,"y":382,"width":728,"height":12}},{"id":"fdd93e96-0a96-4ccb-bbfe-1cdf83dfab96","block_type":"box","text":"ability of the issuer to meet its obligation to buy back the security, and, therefore, depends on the","page_number":404,"box":{"x":116,"y":397,"width":724,"height":12}},{"id":"4e7f7bde-6a1b-4e15-a0df-d0f7e1fe81cd","block_type":"box","text":"creditworthiness of the issuer. With full principal protection, the Fund will receive at maturity of the","page_number":404,"box":{"x":116,"y":413,"width":731,"height":12}},{"id":"2a829b00-0ef8-4bb0-9295-daad2d69e1f0","block_type":"box","text":"hybrid instrument either the stated par value of the hybrid instrument, or potentially, an amount greater","page_number":404,"box":{"x":117,"y":428,"width":764,"height":12}},{"id":"afb2295c-8659-4ac4-8e01-9af79255502d","block_type":"box","text":"than the stated par value if the underlying commodity, index, futures contract or economic variable to","page_number":404,"box":{"x":116,"y":444,"width":753,"height":12}},{"id":"ac73a418-0186-4967-9006-afdfe183dbce","block_type":"box","text":"which the hybrid instrument is linked has increased in value. Partially protected hybrid instruments may","page_number":404,"box":{"x":116,"y":459,"width":770,"height":12}},{"id":"00707d9e-4db7-4b72-9540-57c3adf47e28","block_type":"box","text":"suffer some loss of principal if the underlying commodity, index, futures contract or economic variable","page_number":404,"box":{"x":116,"y":475,"width":758,"height":12}},{"id":"efcc0be0-d75d-498d-a2da-2c0b55e1e061","block_type":"box","text":"to which the hybrid instrument is linked declines in value during the term of the hybrid instrument.","page_number":404,"box":{"x":116,"y":490,"width":726,"height":12}},{"id":"eb68d06a-00ad-45fa-a557-cab226d5b465","block_type":"box","text":"However, partially protected hybrid instruments have a specified limit as to the amount of principal that","page_number":404,"box":{"x":117,"y":506,"width":764,"height":12}},{"id":"17e1ed31-f54b-4fcb-bfab-0adb547fa956","block_type":"box","text":"they may lose.","page_number":404,"box":{"x":116,"y":521,"width":113,"height":12}},{"id":"3667c492-706c-453d-9a95-ca91b9481dd1","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":404,"box":{"x":116,"y":552,"width":355,"height":12}},{"id":"24b7db07-a5d3-4bbd-970c-29cd0fa00909","block_type":"box","text":"Certain Funds may invest in hybrid instruments that","page_number":404,"box":{"x":473,"y":552,"width":393,"height":12}},{"id":"5accb2d7-46e2-48c2-82af-84daaaf5913e","block_type":"box","text":"offer no principal protection. At maturity, there is a risk that the underlying commodity price, futures","page_number":404,"box":{"x":116,"y":568,"width":738,"height":12}},{"id":"23ea969e-a438-475f-b915-45a27ff94715","block_type":"box","text":"contract, index or other economic variable may have declined sufficiently in value such that some or all","page_number":404,"box":{"x":116,"y":583,"width":768,"height":12}},{"id":"8ce0d88d-9116-4bba-b8a9-7ed366f2b6a4","block_type":"box","text":"of the face value of the hybrid instrument might not be returned. The Manager, at its discretion, may","page_number":404,"box":{"x":116,"y":599,"width":746,"height":12}},{"id":"1581e648-5226-469b-aee4-24a64c7fc330","block_type":"box","text":"invest in a partially protected principal structured note or a note without principal protection. In deciding","page_number":404,"box":{"x":117,"y":614,"width":767,"height":12}},{"id":"478436a2-04cd-4640-b4ac-db25b40fa865","block_type":"box","text":"to purchase a note without principal protection, the Manager may consider, among other things, the","page_number":404,"box":{"x":116,"y":630,"width":743,"height":12}},{"id":"717230dc-a026-4f8a-8e7f-2c8e391abf09","block_type":"box","text":"expected performance of the underlying commodity futures contract, index or other economic variable","page_number":404,"box":{"x":116,"y":645,"width":761,"height":12}},{"id":"6809952d-ec3a-4a5e-9a9e-b33cefcde8b9","block_type":"box","text":"over the term of the note, the cost of the note, and any other economic factors that the Manager","page_number":404,"box":{"x":116,"y":661,"width":713,"height":12}},{"id":"7bcb33be-5626-4b98-bfbf-bfca752f7bb4","block_type":"box","text":"believes are relevant.","page_number":404,"box":{"x":117,"y":676,"width":157,"height":10}},{"id":"8cc0a749-0c72-46a2-8828-e8ae34002910","block_type":"box","text":"Limitations on Leverage.","page_number":404,"box":{"x":116,"y":707,"width":181,"height":12}},{"id":"efd25ef4-40b4-42ce-8891-4e9ae0e1430f","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve","page_number":404,"box":{"x":304,"y":707,"width":534,"height":12}},{"id":"add6f847-4e84-4c87-966c-36a0635e163e","block_type":"box","text":"leverage. To avoid being subject to undue leverage risk, a Fund will seek to limit the amount of","page_number":404,"box":{"x":117,"y":723,"width":703,"height":12}},{"id":"4e2f56c0-19ba-435c-8260-5141224610ac","block_type":"box","text":"economic leverage it has under any one hybrid instrument that it buys and the leverage of the Fund’s","page_number":404,"box":{"x":116,"y":738,"width":750,"height":12}},{"id":"d04223b9-fdbc-48e2-a867-16092e8967f0","block_type":"box","text":"overall portfolio. A Fund will not invest in a hybrid instrument if, at the time of purchase: (i) that","page_number":404,"box":{"x":116,"y":754,"width":699,"height":12}},{"id":"427ef9a3-2255-459d-9c4d-f7c3520600d4","block_type":"box","text":"instrument’s “leverage ratio” exceeds 300% of the price increase in the underlying commodity, futures","page_number":404,"box":{"x":117,"y":769,"width":753,"height":12}},{"id":"34e4000b-0dea-4b9d-9834-9cdd13d4ee45","block_type":"box","text":"contract, index or other economic variable or (ii) the Fund’s “portfolio leverage ratio” exceeds 150%,","page_number":404,"box":{"x":116,"y":785,"width":739,"height":12}},{"id":"cf68ab2d-2c6c-4e2a-91e7-20fd5d64a4f3","block_type":"box","text":"measured at the time of purchase. “Leverage ratio” is the expected increase in the value of a hybrid","page_number":404,"box":{"x":117,"y":800,"width":737,"height":12}},{"id":"8aeec1d2-2c11-40f5-bec0-4d5d3e9dae66","block_type":"box","text":"instrument, assuming a one percent price increase in the underlying commodity, futures contract, index","page_number":404,"box":{"x":117,"y":816,"width":765,"height":12}},{"id":"3af2cd61-2ba5-43d4-84b1-ccce682a2099","block_type":"box","text":"or other economic factor. In other words, for a hybrid instrument with a leverage factor of 150%, a 1%","page_number":404,"box":{"x":116,"y":831,"width":758,"height":12}},{"id":"7fc77459-e1d9-4fbb-8d8e-b28d2db40776","block_type":"box","text":"gain in the underlying economic variable would be expected to result in a 1.5% gain in value for the","page_number":404,"box":{"x":116,"y":847,"width":741,"height":12}},{"id":"032797c9-4f5f-4f6c-b8e6-b0216d795aeb","block_type":"box","text":"hybrid instrument. Conversely, a hybrid instrument with a leverage factor of 150% would suffer a 1.5%","page_number":404,"box":{"x":117,"y":862,"width":762,"height":12}},{"id":"3a322f01-1325-408f-8d2f-e5e27f5b3b17","block_type":"box","text":"loss if the underlying economic variable lost 1% of its value. “Portfolio leverage ratio” is defined as the","page_number":404,"box":{"x":117,"y":878,"width":758,"height":12}},{"id":"c4d94ebb-2df4-4497-802c-0c317d3be86a","block_type":"box","text":"II-6","page_number":404,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"29259484-2a0b-4862-81e3-213f3c23a0c5","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":404,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"36cfdff7-6a4b-45c4-ac34-2d6d891ce569","block_type":"box","text":"average (mean) leverage ratio of all instruments in a Fund’s portfolio, weighted by the market values of","page_number":405,"box":{"x":116,"y":87,"width":769,"height":12}},{"id":"e1b0f64c-7a50-427c-8b41-47202d7e7ebb","block_type":"box","text":"such instruments or, in the case of futures contracts, their notional values. A Fund may at times or from","page_number":405,"box":{"x":116,"y":102,"width":771,"height":13}},{"id":"d7aae34a-6343-4304-872b-351c31be4a7b","block_type":"box","text":"time to time decide not to use leverage in its investments or use less leverage than may otherwise be","page_number":405,"box":{"x":116,"y":118,"width":757,"height":12}},{"id":"08f843f5-e048-453c-b768-8fda52ddf700","block_type":"box","text":"allowable.","page_number":405,"box":{"x":116,"y":134,"width":79,"height":9}},{"id":"5cdec893-0fca-4ab9-b1db-4a8dc8870151","block_type":"box","text":"Counterparty Risk.","page_number":405,"box":{"x":117,"y":165,"width":136,"height":12}},{"id":"5155e302-f52a-4ac9-9306-e158a4a5d695","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded","page_number":405,"box":{"x":255,"y":165,"width":625,"height":12}},{"id":"c5f05878-2044-411d-ad99-6ad61c7756da","block_type":"box","text":"futures and options, which are standard contracts, hybrid instruments are customized securities, tailor","page_number":405,"box":{"x":116,"y":180,"width":760,"height":12}},{"id":"5ca472ea-e1f3-4492-bf09-3548f0779f48","block_type":"box","text":"made by a specific issuer. With a listed futures or options contract, an investor’s counterparty is the","page_number":405,"box":{"x":117,"y":196,"width":740,"height":12}},{"id":"939cba54-5346-4c35-b701-486371456c94","block_type":"box","text":"exchange clearinghouse. Exchange clearinghouses are capitalized by the exchange members and","page_number":405,"box":{"x":116,"y":211,"width":738,"height":12}},{"id":"578faa8b-fc83-4ca6-bd4d-f85f1c3ab6dc","block_type":"box","text":"typically have high investment grade ratings (","page_number":405,"box":{"x":116,"y":227,"width":336,"height":12}},{"id":"c573212c-ebfa-47c6-ab38-c7ccae93abea","block_type":"box","text":"e.g.","page_number":405,"box":{"x":453,"y":229,"width":26,"height":10}},{"id":"08824433-d670-469a-b3d0-399d00fd7a71","block_type":"box","text":", ratings of AAA or AA by S&P). Therefore, the risk is","page_number":405,"box":{"x":482,"y":227,"width":396,"height":12}},{"id":"28a65886-becf-423e-ae55-e9b4ad1bec54","block_type":"box","text":"small that an exchange clearinghouse might be unable to meet its obligations at maturity. However,","page_number":405,"box":{"x":116,"y":242,"width":743,"height":12}},{"id":"007dc218-7e66-4b0f-b6d3-817eac7298ed","block_type":"box","text":"with a hybrid instrument, a Fund will take on the counterparty credit risk of the issuer. That is, at","page_number":405,"box":{"x":116,"y":258,"width":715,"height":12}},{"id":"019697d4-1cf6-4110-b81b-67e684962712","block_type":"box","text":"maturity of the hybrid instrument, there is a risk that the issuer may be unable to perform its obligations","page_number":405,"box":{"x":117,"y":273,"width":767,"height":12}},{"id":"4a80c12a-416c-4130-a7ef-2ebcd039bed2","block_type":"box","text":"under the structured note.","page_number":405,"box":{"x":117,"y":289,"width":196,"height":9}},{"id":"2c7517ad-3616-4035-8d39-ed62c6c0b125","block_type":"box","text":"Convertible Securities.","page_number":405,"box":{"x":117,"y":320,"width":180,"height":9}},{"id":"5a04eb2d-c519-4771-ab57-ed1a6c45b42d","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other","page_number":405,"box":{"x":298,"y":320,"width":554,"height":12}},{"id":"f828acfe-644c-4172-9e26-a8bde21e4027","block_type":"box","text":"security that may be converted into or exchanged for a prescribed amount of common stock or other","page_number":405,"box":{"x":116,"y":335,"width":750,"height":12}},{"id":"7afb6c41-b108-4af1-a400-3e2227aeee17","block_type":"box","text":"equity security of the same or a different issuer within a particular period of time at a specified price or","page_number":405,"box":{"x":116,"y":351,"width":761,"height":12}},{"id":"cb734820-998e-42ef-97cc-e26aed9894d5","block_type":"box","text":"formula. A convertible security entitles the holder to receive interest paid or accrued on debt or the","page_number":405,"box":{"x":116,"y":366,"width":734,"height":12}},{"id":"25e6176e-5e2b-41ef-88a5-fe98a2f6c2c1","block_type":"box","text":"dividend paid on preferred stock until the convertible security matures or is redeemed, converted or","page_number":405,"box":{"x":116,"y":382,"width":742,"height":12}},{"id":"8fcb94bf-f35c-43a3-8d76-2c47f9264257","block_type":"box","text":"exchanged. Before conversion, convertible securities have characteristics similar to nonconvertible","page_number":405,"box":{"x":116,"y":397,"width":738,"height":12}},{"id":"8a7c58a6-3a19-404c-8566-aa4ff8350bcc","block_type":"box","text":"income securities in that they ordinarily provide a stable stream of income with generally higher yields","page_number":405,"box":{"x":117,"y":413,"width":757,"height":12}},{"id":"48160b47-e82c-4b4f-b2c2-10c26f9fed19","block_type":"box","text":"than those of common stocks of the same or similar issuers, but lower yields than comparable","page_number":405,"box":{"x":116,"y":428,"width":703,"height":12}},{"id":"c0ed167b-13c1-4425-8b74-a0444df4fcbb","block_type":"box","text":"nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":405,"box":{"x":117,"y":444,"width":767,"height":12}},{"id":"10a74d99-a2cd-445c-9ef8-e81b242d3a4a","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The","page_number":405,"box":{"x":116,"y":459,"width":764,"height":12}},{"id":"d49c9a40-b2c6-405c-87fb-fcde39de7935","block_type":"box","text":"credit standing of the issuer and other factors also may have an effect on the convertible security’s","page_number":405,"box":{"x":116,"y":475,"width":736,"height":12}},{"id":"91493bd7-bad4-496e-8891-6f950679393f","block_type":"box","text":"investment value. Convertible securities rank senior to common stock in a corporation’s capital","page_number":405,"box":{"x":117,"y":490,"width":706,"height":12}},{"id":"b6fa4806-625f-4b02-8e35-17ef378be7b7","block_type":"box","text":"structure but are usually subordinated to comparable nonconvertible securities. Convertible securities","page_number":405,"box":{"x":116,"y":506,"width":757,"height":12}},{"id":"296eed7a-03e1-4ae9-9660-123c6b82a77e","block_type":"box","text":"may be subject to redemption at the option of the issuer at a price established in the convertible","page_number":405,"box":{"x":117,"y":521,"width":714,"height":12}},{"id":"71d41f46-1ff1-456f-a541-cdc33554524e","block_type":"box","text":"security’s governing instrument.","page_number":405,"box":{"x":116,"y":537,"width":241,"height":12}},{"id":"a436e15d-94ba-4795-9751-667fefab2450","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an","page_number":405,"box":{"x":116,"y":568,"width":710,"height":12}},{"id":"b626af6c-4f1d-4f38-9d98-f369b59ebe65","block_type":"box","text":"investment company seeking a high total return from capital appreciation and investment income.","page_number":405,"box":{"x":117,"y":583,"width":727,"height":12}},{"id":"1299afb3-3aa8-412b-bc36-f442701d2742","block_type":"box","text":"These characteristics include the potential for capital appreciation as the value of the underlying","page_number":405,"box":{"x":116,"y":599,"width":716,"height":12}},{"id":"e8466ada-d44a-4725-bacc-16c186edc1ba","block_type":"box","text":"common stock increases, the relatively high yield received from dividend or interest payments as","page_number":405,"box":{"x":116,"y":614,"width":723,"height":12}},{"id":"f9a539fc-fa4e-46b6-99f1-e7d8091b8f57","block_type":"box","text":"compared to common stock dividends and decreased risks of decline in value relative to the underlying","page_number":405,"box":{"x":116,"y":630,"width":770,"height":12}},{"id":"c3f62bd1-f3a2-46cf-9053-33d5b689c1ce","block_type":"box","text":"common stock due to their fixed-income nature. As a result of the conversion feature, however, the","page_number":405,"box":{"x":116,"y":645,"width":739,"height":11}},{"id":"209e23ef-7911-4036-b915-89c737ab198c","block_type":"box","text":"interest rate or dividend preference on a convertible security is generally less than would be the case if","page_number":405,"box":{"x":117,"y":661,"width":762,"height":12}},{"id":"ccafd619-ef9a-48a9-8be6-e47ef21a6a9d","block_type":"box","text":"the securities were issued in nonconvertible form.","page_number":405,"box":{"x":116,"y":676,"width":367,"height":10}},{"id":"8596460b-bd9a-416d-bf3c-5b6331bd9f57","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security","page_number":405,"box":{"x":117,"y":707,"width":755,"height":12}},{"id":"7edbd05a-2fa1-4b14-bf60-7d93e08eeb78","block_type":"box","text":"relative to its credit quality and the potential capital appreciation that is offered by the underlying","page_number":405,"box":{"x":117,"y":723,"width":710,"height":12}},{"id":"5c2236c5-c69c-4041-be72-696d1cd73058","block_type":"box","text":"common stock, among other things.","page_number":405,"box":{"x":116,"y":738,"width":265,"height":12}},{"id":"f7188454-0501-4a4a-bae3-9050091a1c92","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":405,"box":{"x":117,"y":769,"width":758,"height":10}},{"id":"33db8589-0334-492b-963d-8d7af41b2f9f","block_type":"box","text":"substantial portion of the convertible securities held by a Fund are denominated in U.S. dollars, the","page_number":405,"box":{"x":116,"y":785,"width":734,"height":12}},{"id":"78f1ba23-70b6-42c2-a302-574e97622b6b","block_type":"box","text":"underlying equity securities may be quoted in the currency of the country where the issuer is domiciled.","page_number":405,"box":{"x":117,"y":800,"width":764,"height":12}},{"id":"d0aebb5f-3fa7-4c6d-9d35-1f82ae49449c","block_type":"box","text":"As a result, fluctuations in the exchange rate between the currency in which the debt security is","page_number":405,"box":{"x":116,"y":816,"width":707,"height":12}},{"id":"f29b28ff-4b6a-4d5a-9280-3ba9d8a871c0","block_type":"box","text":"denominated and the currency in which the share price is quoted will affect the value of the convertible","page_number":405,"box":{"x":116,"y":831,"width":766,"height":12}},{"id":"092381c4-bffb-4a49-af9a-aa7566df8dd3","block_type":"box","text":"security. With respect to convertible securities denominated in a currency different from that of the","page_number":405,"box":{"x":116,"y":847,"width":733,"height":12}},{"id":"bcb4ac1b-d6dd-473a-b31f-c2ca5fa504b3","block_type":"box","text":"underlying equity securities, the conversion price may be based on a fixed exchange rate established","page_number":405,"box":{"x":117,"y":862,"width":756,"height":12}},{"id":"b9c312fb-0f8d-4653-abdd-e9067c934871","block_type":"box","text":"at the time the security is issued, which may increase the effects of currency risk. As described below,","page_number":405,"box":{"x":116,"y":878,"width":763,"height":12}},{"id":"87104a84-256a-47b1-90a7-b90e2e47ef10","block_type":"box","text":"II-7","page_number":405,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"ee87cfa0-29a6-4d82-ba7d-96572ebcc090","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":405,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e515e3f4-697b-409f-b1f3-72b8994f65f0","block_type":"box","text":"a Fund is authorized to enter into foreign currency hedging transactions in which it may seek to reduce","page_number":406,"box":{"x":116,"y":87,"width":766,"height":12}},{"id":"18d511c9-4667-4928-b9bf-11542208b407","block_type":"box","text":"the effect of exchange rate fluctuations.","page_number":406,"box":{"x":116,"y":102,"width":298,"height":13}},{"id":"6a0461f5-ee33-4ee9-b5c7-bffcfdd544dc","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield","page_number":406,"box":{"x":116,"y":130,"width":749,"height":12}},{"id":"c17b65e9-2c2a-45e1-9712-7cbe1697e11c","block_type":"box","text":"on nonconvertible securities of comparable issuers and by the value of the underlying common stock.","page_number":406,"box":{"x":116,"y":145,"width":757,"height":12}},{"id":"bbc87ac8-f9e7-4270-a1a0-f96d89e8d162","block_type":"box","text":"The value of a convertible security viewed without regard to its conversion feature (","page_number":406,"box":{"x":116,"y":161,"width":617,"height":12}},{"id":"98cde4b9-68d7-40fd-877a-5ee2c2f4d145","block_type":"box","text":"i.e.","page_number":406,"box":{"x":734,"y":161,"width":20,"height":9}},{"id":"6aed0d70-de63-40a2-bdce-07d6d9941ee2","block_type":"box","text":", strictly on the","page_number":406,"box":{"x":757,"y":161,"width":112,"height":12}},{"id":"23b464ae-c821-4121-85be-e1b2c90c57fd","block_type":"box","text":"basis of its yield) is sometimes referred to as its “investment value.” To the extent interest rates","page_number":406,"box":{"x":117,"y":176,"width":709,"height":12}},{"id":"713297c0-7e12-4c9d-9aad-47abb457bebf","block_type":"box","text":"change, the investment value of the convertible security typically will fluctuate. At the same time,","page_number":406,"box":{"x":116,"y":192,"width":720,"height":12}},{"id":"bdcc030a-769a-4d9a-973c-74643cccead4","block_type":"box","text":"however, the value of the convertible security will be influenced by its “conversion value,” which is the","page_number":406,"box":{"x":117,"y":207,"width":756,"height":12}},{"id":"58ce5934-460e-47c4-b4fd-d789b56bef07","block_type":"box","text":"market value of the underlying common stock that would be obtained if the convertible security were","page_number":406,"box":{"x":117,"y":223,"width":747,"height":12}},{"id":"07d7ce7e-724c-4d6f-b39e-6224f492dc93","block_type":"box","text":"converted. Conversion value fluctuates directly with the price of the underlying common stock. If the","page_number":406,"box":{"x":116,"y":238,"width":746,"height":12}},{"id":"002fd1af-6e1b-45f3-ab2b-60f4b5303dfc","block_type":"box","text":"conversion value of a convertible security is substantially below its investment value, the price of the","page_number":406,"box":{"x":116,"y":254,"width":748,"height":12}},{"id":"b3271220-f230-4adf-bfd1-afb7e1571b8d","block_type":"box","text":"convertible security is governed principally by its investment value. To the extent the conversion value","page_number":406,"box":{"x":116,"y":269,"width":761,"height":12}},{"id":"26518352-52d8-4a58-9bd7-44416a29dc41","block_type":"box","text":"of a convertible security increases to a point that approximates or exceeds its investment value, the","page_number":406,"box":{"x":116,"y":285,"width":743,"height":12}},{"id":"ad3de357-22b8-4582-9b7c-440ddf500fdc","block_type":"box","text":"price of the convertible security will be influenced principally by its conversion value. A convertible","page_number":406,"box":{"x":117,"y":300,"width":729,"height":12}},{"id":"df3320de-53a8-4151-9c3e-91dc99187f19","block_type":"box","text":"security will sell at a premium over the conversion value to the extent investors place value on the right","page_number":406,"box":{"x":116,"y":316,"width":768,"height":12}},{"id":"1893d318-0047-458c-85e2-95c9bf321e40","block_type":"box","text":"to acquire the underlying common stock while holding a fixed-income security. The yield and","page_number":406,"box":{"x":116,"y":331,"width":691,"height":12}},{"id":"331e1da0-1142-4768-be68-03175025629e","block_type":"box","text":"conversion premium of convertible securities issued in Japan and the Euromarket are frequently","page_number":406,"box":{"x":116,"y":347,"width":718,"height":12}},{"id":"f36e587c-0b03-4860-b01e-291b61b881d1","block_type":"box","text":"determined at levels that cause the conversion value to affect their market value more than the","page_number":406,"box":{"x":116,"y":362,"width":708,"height":10}},{"id":"7e12611a-d82d-422f-bad7-098dcbe47387","block_type":"box","text":"securities’ investment value.","page_number":406,"box":{"x":116,"y":378,"width":215,"height":9}},{"id":"586feb22-60b9-48c6-92d6-81f228c0f425","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":406,"box":{"x":117,"y":405,"width":770,"height":12}},{"id":"a5ec96ff-d598-4b65-9da7-ef2928b5e9cd","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible","page_number":406,"box":{"x":116,"y":420,"width":713,"height":12}},{"id":"9caf54b6-9bec-42d0-ad4e-4b1ed643b713","block_type":"box","text":"security may be subject to redemption at the option of the issuer at a price established in a charter","page_number":406,"box":{"x":116,"y":436,"width":734,"height":12}},{"id":"6046d2bc-9f00-41df-8f08-e286ed822aca","block_type":"box","text":"provision, indenture or other governing instrument pursuant to which the convertible security was","page_number":406,"box":{"x":117,"y":451,"width":723,"height":12}},{"id":"fc831258-0daa-4f27-beb7-7d324527e348","block_type":"box","text":"issued. If a convertible security held by a Fund is called for redemption, the Fund will be required to","page_number":406,"box":{"x":117,"y":467,"width":741,"height":12}},{"id":"fc47833c-c150-4bba-931d-d07b1ee8e7f8","block_type":"box","text":"redeem the security, convert it into the underlying common stock or sell it to a third party. Certain","page_number":406,"box":{"x":117,"y":482,"width":723,"height":12}},{"id":"60a1be94-5f57-42f9-a3ab-b0ad796d7c39","block_type":"box","text":"convertible debt securities may provide a put option to the holder, which entitles the holder to cause","page_number":406,"box":{"x":116,"y":498,"width":745,"height":12}},{"id":"889a9d13-bd36-4e34-a813-2253a7cdc1c1","block_type":"box","text":"the security to be redeemed by the issuer at a premium over the stated principal amount of the debt","page_number":406,"box":{"x":116,"y":513,"width":745,"height":12}},{"id":"5063f9fc-0509-4452-85f4-d12e8127ee24","block_type":"box","text":"security under certain circumstances.","page_number":406,"box":{"x":116,"y":529,"width":282,"height":12}},{"id":"c7fb763d-a71f-4257-9f9f-5a9d23542e66","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include","page_number":406,"box":{"x":116,"y":556,"width":765,"height":12}},{"id":"962136fc-4e72-460f-b22e-fc10dc46e621","block_type":"box","text":"either Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are","page_number":406,"box":{"x":116,"y":571,"width":717,"height":10}},{"id":"5efe014e-2d9a-4c4e-89bd-87eb573ff8fd","block_type":"box","text":"instruments that are created by the issuer and have the economic characteristics of traditional","page_number":406,"box":{"x":117,"y":587,"width":701,"height":12}},{"id":"4e872096-8c95-451f-825a-97106021baaf","block_type":"box","text":"convertible securities but may not actually permit conversion into the underlying equity securities in all","page_number":406,"box":{"x":116,"y":603,"width":760,"height":12}},{"id":"02b51daa-95fb-4057-894e-ec15a6898bbe","block_type":"box","text":"circumstances. As an example, a private company may issue a Cash-Settled Convertible that is","page_number":406,"box":{"x":116,"y":618,"width":715,"height":12}},{"id":"19010159-9a52-4c41-9e41-42900708764e","block_type":"box","text":"convertible into common stock only if the company successfully completes a public offering of its","page_number":406,"box":{"x":116,"y":634,"width":721,"height":12}},{"id":"f49bdd2a-75fe-4462-9d64-3c512e357d55","block_type":"box","text":"common stock prior to maturity and otherwise pays a cash amount to reflect any equity appreciation.","page_number":406,"box":{"x":116,"y":649,"width":751,"height":12}},{"id":"05fa2933-21a9-4549-9a88-7e55e8494c8e","block_type":"box","text":"“Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":406,"box":{"x":116,"y":665,"width":721,"height":12}},{"id":"eb69ad80-23ab-4f66-84eb-377f95ff5212","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":406,"box":{"x":116,"y":680,"width":645,"height":12}},{"id":"6d06c6b6-9edd-4a8c-b909-5639494aebde","block_type":"box","text":"i.e.","page_number":406,"box":{"x":767,"y":680,"width":21,"height":10}},{"id":"8dfd79e1-626e-4957-abbe-3889c1d8be84","block_type":"box","text":", fixed","page_number":406,"box":{"x":791,"y":680,"width":49,"height":11}},{"id":"ca2af80b-5428-4d4c-b6e4-8e58ccacb628","block_type":"box","text":"income (“fixed-income component”) or a right to acquire equity securities (“convertibility component”).","page_number":406,"box":{"x":117,"y":696,"width":750,"height":12}},{"id":"ba9e5c54-c602-4afc-84a3-25ebf57b10e4","block_type":"box","text":"The fixed-income component is achieved by investing in nonconvertible fixed-income securities, such","page_number":406,"box":{"x":116,"y":711,"width":751,"height":12}},{"id":"9578dedd-b490-4206-870b-ede94a190f73","block_type":"box","text":"as nonconvertible bonds, preferred stocks and money market instruments. The convertibility","page_number":406,"box":{"x":116,"y":727,"width":684,"height":12}},{"id":"ba63505f-333d-4471-a495-92cc59569bf1","block_type":"box","text":"component is achieved by investing in call options, warrants, or other securities with equity conversion","page_number":406,"box":{"x":116,"y":742,"width":758,"height":12}},{"id":"41ec88e6-ccf1-4909-8fdb-f4c935b47182","block_type":"box","text":"features (“equity features”) granting the holder the right to purchase a specified quantity of the","page_number":406,"box":{"x":116,"y":758,"width":697,"height":12}},{"id":"3c660af9-120e-4f50-b08f-6664ea848a99","block_type":"box","text":"underlying stocks within a specified period of time at a specified price or, in the case of a stock index","page_number":406,"box":{"x":117,"y":773,"width":745,"height":12}},{"id":"1a536801-5699-4cea-9da8-25ca74313e0d","block_type":"box","text":"option, the right to receive a cash payment based on the value of the underlying stock index.","page_number":406,"box":{"x":116,"y":789,"width":685,"height":12}},{"id":"65e6f45f-aacb-49e5-85bc-ef2679159722","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a","page_number":406,"box":{"x":116,"y":816,"width":751,"height":12}},{"id":"59b412cc-0dfe-4e41-8593-a5d3a6b6ccfd","block_type":"box","text":"traditional convertible security, which is a single security that has a unitary market value, a","page_number":406,"box":{"x":116,"y":831,"width":674,"height":12}},{"id":"b0b7f01c-08fd-4180-84fa-7a3ae658b650","block_type":"box","text":"Manufactured Convertible is comprised of two or more separate securities, each with its own market","page_number":406,"box":{"x":117,"y":847,"width":747,"height":12}},{"id":"8befc171-e37f-4223-9099-bff441b232b9","block_type":"box","text":"value. Therefore, the total “market value” of such a Manufactured Convertible is the sum of the values","page_number":406,"box":{"x":116,"y":862,"width":761,"height":11}},{"id":"96fd97ae-9ea8-4106-b608-50e2b9157269","block_type":"box","text":"of its fixed-income component and its convertibility component.","page_number":406,"box":{"x":116,"y":878,"width":472,"height":12}},{"id":"345a5056-80a9-4728-b918-4f887d74a82c","block_type":"box","text":"II-8","page_number":406,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"dbb94528-c40b-4d2e-a17d-e6e6cdcb8aa2","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":406,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f997fffa-5acf-4e3d-8eac-1d370a25ed26","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a","page_number":407,"box":{"x":117,"y":87,"width":724,"height":12}},{"id":"49eb87e4-8c13-40c4-9921-79d722c851d6","block_type":"box","text":"traditional convertible security. Because many corporations have not issued convertible securities, the","page_number":407,"box":{"x":116,"y":103,"width":761,"height":12}},{"id":"f9f6d439-d848-4afe-b2c4-475ab49d9847","block_type":"box","text":"Manager may combine a fixed-income instrument and an equity feature with respect to the stock of the","page_number":407,"box":{"x":117,"y":118,"width":767,"height":12}},{"id":"1d7a7f08-95af-4100-a240-64f4435f51b2","block_type":"box","text":"issuer of the fixed-income instrument to create a synthetic convertible security otherwise unavailable in","page_number":407,"box":{"x":117,"y":134,"width":767,"height":12}},{"id":"03a379e6-e0f0-4e4a-b8c2-e5c4fc5c583e","block_type":"box","text":"the market. The Manager may also combine a fixed-income instrument of an issuer with an equity","page_number":407,"box":{"x":116,"y":149,"width":731,"height":12}},{"id":"e6453227-c146-4954-b474-cd084fc816e1","block_type":"box","text":"feature with respect to the stock of a different issuer when the Manager believes such a Manufactured","page_number":407,"box":{"x":116,"y":165,"width":763,"height":12}},{"id":"801a52ab-462e-482c-9837-cb13e4129e66","block_type":"box","text":"Convertible would better promote a Fund’s objective than alternative investments. For example, the","page_number":407,"box":{"x":117,"y":180,"width":742,"height":12}},{"id":"1244e2e2-bd83-4b01-bd6b-cb7c2d88da2c","block_type":"box","text":"Manager may combine an equity feature with respect to an issuer’s stock with a fixed-income security","page_number":407,"box":{"x":117,"y":196,"width":759,"height":12}},{"id":"f7ad561f-c0ca-46bc-b08a-4c6881c48ce6","block_type":"box","text":"of a different issuer in the same industry to diversify the Fund’s credit exposure, or with a U.S.","page_number":407,"box":{"x":116,"y":211,"width":702,"height":12}},{"id":"2c8a8663-05c1-4487-8215-4984a785fbae","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional","page_number":407,"box":{"x":116,"y":227,"width":762,"height":12}},{"id":"406eca36-432d-4bc0-ab0a-e96eff2f0909","block_type":"box","text":"convertible security issued by that issuer. A Manufactured Convertible also is a more flexible","page_number":407,"box":{"x":116,"y":242,"width":691,"height":12}},{"id":"d4c08eb2-56ef-4111-be6f-ea280788f683","block_type":"box","text":"investment in that its two components may be purchased separately and, upon purchasing the","page_number":407,"box":{"x":117,"y":258,"width":704,"height":12}},{"id":"06ff53e6-e626-47fd-9d9b-266e1383bdaa","block_type":"box","text":"separate securities, “combined” to create a Manufactured Convertible. For example, the Fund may","page_number":407,"box":{"x":116,"y":273,"width":736,"height":12}},{"id":"8241839a-cf36-421c-8c3b-26c769802ec0","block_type":"box","text":"purchase a warrant for eventual inclusion in a Manufactured Convertible while postponing the","page_number":407,"box":{"x":117,"y":289,"width":697,"height":12}},{"id":"511b2c83-155c-475b-ad67-865595ecda6c","block_type":"box","text":"purchase of a suitable bond to pair with the warrant pending development of more favorable market","page_number":407,"box":{"x":117,"y":304,"width":743,"height":12}},{"id":"155705bf-4837-49e8-b80a-e4d3e99a5f55","block_type":"box","text":"conditions.","page_number":407,"box":{"x":116,"y":320,"width":85,"height":9}},{"id":"ed494a71-d322-4576-aee6-2cdc38819bcb","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a","page_number":407,"box":{"x":116,"y":351,"width":761,"height":12}},{"id":"6cd2428b-bbe9-4451-b19e-b332f8609c5d","block_type":"box","text":"traditional convertible security with similar characteristics. For example, in the event a Fund created a","page_number":407,"box":{"x":116,"y":366,"width":758,"height":12}},{"id":"8c754ec0-bbc3-466d-bfc5-8a40530dc135","block_type":"box","text":"Manufactured Convertible by combining a short-term U.S. Treasury instrument and a call option on a","page_number":407,"box":{"x":117,"y":382,"width":752,"height":12}},{"id":"f8c6949a-6331-4f7e-9f55-a9eb1c4955f8","block_type":"box","text":"stock, the Manufactured Convertible would be expected to outperform a traditional convertible of","page_number":407,"box":{"x":116,"y":397,"width":720,"height":12}},{"id":"918913d1-2e66-41cc-8b6e-86a30daf715a","block_type":"box","text":"similar maturity that is convertible into that stock during periods when Treasury instruments outperform","page_number":407,"box":{"x":116,"y":413,"width":767,"height":12}},{"id":"148f429c-d75e-43bc-9d9c-52af5378f5ef","block_type":"box","text":"corporate fixed-income securities and underperform during periods when corporate fixed-income","page_number":407,"box":{"x":116,"y":428,"width":722,"height":12}},{"id":"e22a937a-8de2-430d-844d-a705f9ce7913","block_type":"box","text":"securities outperform Treasury instruments.","page_number":407,"box":{"x":116,"y":444,"width":329,"height":12}},{"id":"28f2f400-635e-4eff-af0b-e775e613ef8b","block_type":"box","text":"Corporate Loans.","page_number":407,"box":{"x":117,"y":475,"width":137,"height":12}},{"id":"46f72410-ddea-4515-8c39-e920334b3d10","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally","page_number":407,"box":{"x":255,"y":475,"width":570,"height":12}},{"id":"39f15cb2-beae-48e8-b748-f91c411594f0","block_type":"box","text":"non-investment grade floating rate instruments. Usually, they are freely callable at the issuer’s option.","page_number":407,"box":{"x":117,"y":490,"width":757,"height":12}},{"id":"814912ca-f1d9-4665-b050-62b4a49cdb0c","block_type":"box","text":"Certain Funds may invest in fixed and floating rate loans (“Loans”) arranged through private","page_number":407,"box":{"x":117,"y":506,"width":685,"height":12}},{"id":"cbfe6591-752a-446d-8829-fd1dc4ad326f","block_type":"box","text":"negotiations between a corporate borrower or a foreign sovereign entity and one or more financial","page_number":407,"box":{"x":117,"y":521,"width":730,"height":12}},{"id":"1551239d-623c-4c08-86ff-846effdcc6a1","block_type":"box","text":"institutions or institutional investors (“Lenders”). A Fund may invest in such Loans in the form of","page_number":407,"box":{"x":117,"y":537,"width":712,"height":12}},{"id":"d03a397f-b6c5-44b6-b8a6-2651f87b4924","block_type":"box","text":"participations in Loans (“Participations”) and assignments of all or a portion of Loans from third parties","page_number":407,"box":{"x":117,"y":552,"width":761,"height":12}},{"id":"37bbca65-7688-4307-860d-d8193ff22c69","block_type":"box","text":"(“Assignments”). A Fund considers these investments to be investments in debt securities for purposes","page_number":407,"box":{"x":117,"y":568,"width":769,"height":12}},{"id":"8c221b56-4da8-4498-adf7-ba2e7deff929","block_type":"box","text":"of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":407,"box":{"x":116,"y":583,"width":770,"height":12}},{"id":"b769403a-8f91-410b-80d3-4392e53b2031","block_type":"box","text":"only with the Lender, not with the borrower. The Fund will have the right to receive payments of","page_number":407,"box":{"x":116,"y":599,"width":712,"height":12}},{"id":"866478d1-e96f-4870-a52d-50daa8c8b9a4","block_type":"box","text":"principal, interest and any fees to which it is entitled only from the Lender selling the Participation and","page_number":407,"box":{"x":117,"y":614,"width":756,"height":12}},{"id":"994d23e1-0859-433b-82dc-166ef957c402","block_type":"box","text":"only upon receipt by the Lender of the payments from the borrower. In connection with purchasing","page_number":407,"box":{"x":116,"y":630,"width":734,"height":12}},{"id":"287166aa-5d7f-468b-88b2-0f96a9a80ec7","block_type":"box","text":"Participations, the Fund generally will have no right to enforce compliance by the borrower with the","page_number":407,"box":{"x":117,"y":645,"width":737,"height":12}},{"id":"8b8e44ff-ccfa-48fb-b47f-bf7196b7d85e","block_type":"box","text":"terms of the loan agreement relating to the Loans, nor any rights of set-off against the borrower, and","page_number":407,"box":{"x":116,"y":661,"width":744,"height":12}},{"id":"f29cdb9c-0f4d-4edc-87cb-af029a42f287","block_type":"box","text":"the Fund may not benefit directly from any collateral supporting the Loan in which it has purchased the","page_number":407,"box":{"x":116,"y":676,"width":761,"height":12}},{"id":"f4102e93-0f19-490e-b88a-45cde6330581","block_type":"box","text":"Participation. As a result, the Fund will assume the credit risk of both the borrower and the Lender that","page_number":407,"box":{"x":117,"y":692,"width":758,"height":12}},{"id":"7c383edf-fb46-4786-b812-4792d37f2556","block_type":"box","text":"is selling the Participation. In the event of the insolvency of the Lender selling the Participation, the","page_number":407,"box":{"x":117,"y":707,"width":730,"height":12}},{"id":"62c97f23-8074-45b6-bc8e-0e30525c72d1","block_type":"box","text":"Fund may be treated as a general creditor of the Lender and may not benefit from any set-off between","page_number":407,"box":{"x":117,"y":723,"width":758,"height":12}},{"id":"46aa14ce-a57d-46eb-9eb7-a6f9e7fb4012","block_type":"box","text":"the Lender and the borrower. The Fund will acquire Participations only if the Lender interpositioned","page_number":407,"box":{"x":116,"y":738,"width":734,"height":12}},{"id":"2ab0d8ed-33c3-479f-9e52-73239cc1615b","block_type":"box","text":"between the Fund and the borrower is determined by the Fund’s manager to be creditworthy. When","page_number":407,"box":{"x":117,"y":754,"width":738,"height":12}},{"id":"68fef637-6ed8-4122-b8ef-1eb265d754db","block_type":"box","text":"the Fund purchases Assignments from Lenders, the Fund will acquire direct rights against the borrower","page_number":407,"box":{"x":116,"y":769,"width":767,"height":12}},{"id":"9f8f400a-2886-444b-b38d-da831dc92adf","block_type":"box","text":"on the Loan, and will not have exposure to a counterparty’s credit risk. The Funds may enter into","page_number":407,"box":{"x":116,"y":785,"width":718,"height":12}},{"id":"76517d5a-936e-4f89-b935-97ce04321e2f","block_type":"box","text":"Participations and Assignments on a forward commitment or “when-issued” basis, whereby a Fund","page_number":407,"box":{"x":117,"y":800,"width":731,"height":12}},{"id":"cfad294e-7258-474c-ad19-d5089a7dcd05","block_type":"box","text":"would agree to purchase a Participation or Assignment at set terms in the future. For more information","page_number":407,"box":{"x":116,"y":816,"width":759,"height":12}},{"id":"f9fec4d3-c1c0-43df-94aa-44e0dd817e72","block_type":"box","text":"on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":407,"box":{"x":116,"y":831,"width":757,"height":12}},{"id":"31f6ec2d-459c-419d-bf16-1be755bcf876","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":407,"box":{"x":116,"y":847,"width":345,"height":9}},{"id":"7fae0147-9c3d-419a-9876-458fa3c00b2b","block_type":"box","text":"II-9","page_number":407,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"63dad7f0-4527-4c23-839e-5a20ccbaf658","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":407,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"aeed7e82-c641-4b71-b7b8-4aa45b7f0625","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market","page_number":408,"box":{"x":116,"y":87,"width":752,"height":12}},{"id":"320d5dab-fce7-4efc-b3b8-023c84a7e535","block_type":"box","text":"for such instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases","page_number":408,"box":{"x":116,"y":102,"width":764,"height":13}},{"id":"df13de39-d3a4-4443-a175-e8ee8e5b199c","block_type":"box","text":"such instruments could be sold only to a limited number of institutional investors. The lack of a","page_number":408,"box":{"x":116,"y":118,"width":704,"height":12}},{"id":"ea0b1201-b151-485b-9ea2-789b6a0a16f7","block_type":"box","text":"sufficiently liquid secondary market may have an adverse impact on the value of such instruments and","page_number":408,"box":{"x":116,"y":134,"width":765,"height":12}},{"id":"485a12d0-2ef7-48bc-b6c7-f8d315ae0868","block_type":"box","text":"on the Fund’s ability to dispose of particular Assignments or Participations in response to a specific","page_number":408,"box":{"x":116,"y":149,"width":740,"height":12}},{"id":"b7cc4e2d-0e7a-4d85-828f-9a282ae3d3d6","block_type":"box","text":"economic event, such as deterioration in the creditworthiness of the borrower.","page_number":408,"box":{"x":116,"y":165,"width":583,"height":11}},{"id":"afe68ac0-41c3-437a-9c90-0d03b31a9b15","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as","page_number":408,"box":{"x":117,"y":193,"width":768,"height":12}},{"id":"0cbf25bc-dd00-45e6-9c5a-b47670a12a21","block_type":"box","text":"a syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of","page_number":408,"box":{"x":116,"y":209,"width":720,"height":12}},{"id":"e98add0a-ee3c-4161-82b7-bd01d19c0bcd","block_type":"box","text":"principal and interest. Failure by the syndicate agent to fulfill its obligations may delay or adversely","page_number":408,"box":{"x":117,"y":224,"width":734,"height":12}},{"id":"1b42a43b-5545-471c-bbd6-0cd8be54d0f0","block_type":"box","text":"affect receipt of payment by the Fund.","page_number":408,"box":{"x":116,"y":240,"width":287,"height":12}},{"id":"a6f00b55-0beb-4075-94ba-790922ddc16f","block_type":"box","text":"The Loans in which the Fund may invest are subject to the risk of loss of principal and income.","page_number":408,"box":{"x":116,"y":269,"width":706,"height":12}},{"id":"c61ff956-1968-4729-9e90-01817bed5b09","block_type":"box","text":"Although borrowers frequently provide collateral to secure repayment of these obligations they do not","page_number":408,"box":{"x":116,"y":284,"width":757,"height":12}},{"id":"2f0cc7ac-9294-4a24-b198-aebbe6282816","block_type":"box","text":"always do so. If they do provide collateral, the value of the collateral may not completely cover the","page_number":408,"box":{"x":116,"y":300,"width":732,"height":12}},{"id":"4920d52a-9caf-472a-810d-26203549f3ca","block_type":"box","text":"borrower’s obligations at the time of a default. If a borrower files for protection from its creditors under","page_number":408,"box":{"x":117,"y":315,"width":757,"height":12}},{"id":"efddf4d5-73b0-4e15-9496-b7e764766606","block_type":"box","text":"the U.S. bankruptcy laws, these laws may limit a Fund’s rights to its collateral. In addition, the value of","page_number":408,"box":{"x":116,"y":331,"width":761,"height":12}},{"id":"48a5b92d-ed5b-4bda-9c64-f7ce5209a924","block_type":"box","text":"collateral may erode during a bankruptcy case. In the event of a bankruptcy, the holder of a Loan may","page_number":408,"box":{"x":116,"y":346,"width":762,"height":12}},{"id":"e9880985-fab3-49ef-bd62-148625eff56a","block_type":"box","text":"not recover its principal, may experience a long delay in recovering its investment and may not receive","page_number":408,"box":{"x":117,"y":362,"width":765,"height":12}},{"id":"c1e2c39f-dc91-4422-a836-1afdaa904560","block_type":"box","text":"interest during the delay.","page_number":408,"box":{"x":117,"y":377,"width":188,"height":12}},{"id":"ebe92072-8b70-473c-a5dc-eb6c6984d977","block_type":"box","text":"Transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale","page_number":408,"box":{"x":116,"y":406,"width":763,"height":12}},{"id":"ccc6946a-6254-4be6-8c8b-ed10bd0b3668","block_type":"box","text":"of corporate loans may not be readily available to make additional investments or to meet a Fund’s","page_number":408,"box":{"x":116,"y":421,"width":738,"height":12}},{"id":"a611a64f-7529-486d-ad93-04250f718598","block_type":"box","text":"redemption obligations. To the extent the extended settlement process gives rise to short-term liquidity","page_number":408,"box":{"x":117,"y":437,"width":765,"height":12}},{"id":"fd94fac9-736c-4144-9a4d-0403e0f3274a","block_type":"box","text":"needs, a Fund may hold additional cash, sell investments or temporarily borrow from banks and other","page_number":408,"box":{"x":117,"y":452,"width":758,"height":12}},{"id":"e5204d6d-b400-4b6a-b838-ebbf892f1819","block_type":"box","text":"lenders.","page_number":408,"box":{"x":117,"y":468,"width":63,"height":9}},{"id":"e30cfbca-5e05-4d32-9808-cf9208144aa2","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities","page_number":408,"box":{"x":117,"y":497,"width":746,"height":12}},{"id":"8854f719-b2a9-4eb7-b5cb-f1a4fa4db403","block_type":"box","text":"laws. Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and","page_number":408,"box":{"x":117,"y":512,"width":758,"height":12}},{"id":"3c2e26b1-169e-4adf-a8ba-a78a08cd7930","block_type":"box","text":"purchasers of interests in Loans, such as the Funds, may not have the protection of the anti-fraud","page_number":408,"box":{"x":117,"y":528,"width":729,"height":12}},{"id":"ddcf935d-2c83-4a7e-a60d-770e141a7e24","block_type":"box","text":"provisions of the federal securities laws as would otherwise be available for bonds or stocks. Instead,","page_number":408,"box":{"x":117,"y":543,"width":755,"height":12}},{"id":"ccc92c30-abd6-44f4-b2be-74c028a43ab9","block_type":"box","text":"in such cases, parties generally would rely on the contractual provisions in the Loan agreement itself","page_number":408,"box":{"x":117,"y":559,"width":750,"height":12}},{"id":"290faad6-c61e-42de-b7d6-7e467c6d0d35","block_type":"box","text":"and common-law fraud protections under applicable state law.","page_number":408,"box":{"x":116,"y":574,"width":467,"height":12}},{"id":"6750c230-6c8a-4156-8bb1-a0b7b4c23700","block_type":"box","text":"Direct Lending.","page_number":408,"box":{"x":116,"y":603,"width":111,"height":12}},{"id":"43f9e0ac-0171-47a6-9a46-803cd26c51c6","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct","page_number":408,"box":{"x":229,"y":603,"width":655,"height":12}},{"id":"adfd6a62-3aea-4424-a17c-671563d94a83","block_type":"box","text":"loans between the Fund and a borrower may not be administered by an underwriter or agent bank. The","page_number":408,"box":{"x":117,"y":618,"width":771,"height":12}},{"id":"1b58a9c2-f9d7-4c11-b1bf-32ac9dd695b3","block_type":"box","text":"Fund may provide financing to commercial borrowers directly or through companies acquired (or","page_number":408,"box":{"x":117,"y":634,"width":719,"height":12}},{"id":"00247072-76b4-4524-a1ab-6a23e3bd230a","block_type":"box","text":"created) and owned by or otherwise affiliated with the Fund. The terms of the direct loans are","page_number":408,"box":{"x":116,"y":649,"width":697,"height":12}},{"id":"be162d93-e317-4b25-abff-a74764b73d59","block_type":"box","text":"negotiated with borrowers in private transactions. Furthermore, a direct loan may be secured or","page_number":408,"box":{"x":117,"y":665,"width":707,"height":12}},{"id":"5f5b935c-2756-4b64-86b2-05ad83179378","block_type":"box","text":"unsecured.","page_number":408,"box":{"x":117,"y":680,"width":80,"height":10}},{"id":"c2902ae0-4284-4c55-9709-9b2416d47904","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of","page_number":408,"box":{"x":117,"y":709,"width":751,"height":12}},{"id":"96b8b875-4c68-48c6-9b3f-dba34560abff","block_type":"box","text":"the borrower and/or any collateral for payment of interest and repayment of principal. The risks","page_number":408,"box":{"x":116,"y":725,"width":703,"height":12}},{"id":"05f15567-0e8c-4aa5-b938-be5dcf1ba737","block_type":"box","text":"associated with direct loans are substantially similar to those associated with investing in corporate","page_number":408,"box":{"x":116,"y":740,"width":733,"height":12}},{"id":"7ea5fba5-1312-4371-b3ad-56de1a6a30b0","block_type":"box","text":"loans. In making a direct loan, the Fund is exposed to the risk that the borrower may default or become","page_number":408,"box":{"x":117,"y":756,"width":764,"height":12}},{"id":"dee7323a-d23a-455d-a456-b62c23c0c83b","block_type":"box","text":"insolvent and, consequently, that the Fund will lose money on the loan. Furthermore, direct loans may","page_number":408,"box":{"x":117,"y":771,"width":755,"height":12}},{"id":"8261e0bb-d4d6-4f28-8b0f-2528eec502d5","block_type":"box","text":"subject the Fund to liquidity and interest rate risk and certain direct loans may be deemed illiquid.","page_number":408,"box":{"x":116,"y":787,"width":720,"height":12}},{"id":"f146cead-bf3b-4782-b66b-4e03b309421b","block_type":"box","text":"Direct loans are not publicly traded and may not have a secondary market. The lack of a secondary","page_number":408,"box":{"x":117,"y":802,"width":737,"height":12}},{"id":"0492bd1b-f52b-4365-b094-b01721582949","block_type":"box","text":"market for direct loans may have an adverse impact on the ability of the Fund to dispose of a direct","page_number":408,"box":{"x":117,"y":818,"width":734,"height":12}},{"id":"c67af0aa-d474-4537-9073-8daf05bcf842","block_type":"box","text":"loan and/or to value the direct loan.","page_number":408,"box":{"x":117,"y":833,"width":266,"height":10}},{"id":"5a14e8ea-0fd2-4b6e-a122-95c1b795da9e","block_type":"box","text":"When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the","page_number":408,"box":{"x":116,"y":862,"width":736,"height":12}},{"id":"2fc36fcc-aed1-49c4-9589-f1257721b6e7","block_type":"box","text":"Fund to originate loans on advantageous terms. In originating loans, the Fund will compete with a","page_number":408,"box":{"x":117,"y":878,"width":727,"height":11}},{"id":"3e9bdc88-8f8f-46b0-bb10-e200b048a870","block_type":"box","text":"II-10","page_number":408,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"d68ae7f4-1246-45c9-95f4-0c187059ca21","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":408,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e3b4ce32-06c1-4277-8fab-75db2b94efdc","block_type":"box","text":"broad spectrum of lenders. Increased competition for, or a diminishment in the available supply of,","page_number":409,"box":{"x":117,"y":87,"width":733,"height":12}},{"id":"c8acd55c-d987-47df-89f9-1e22058612a7","block_type":"box","text":"qualifying loans could result in lower yields on such loans, which could reduce Fund performance.","page_number":409,"box":{"x":116,"y":102,"width":730,"height":13}},{"id":"0f173dd6-83b4-4303-95ae-a937ba79cbc1","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing","page_number":409,"box":{"x":116,"y":134,"width":719,"height":12}},{"id":"f1b40683-ae2a-4759-ad0c-e54445523476","block_type":"box","text":"significant financial or business difficulties, including companies involved in bankruptcy or other","page_number":409,"box":{"x":116,"y":149,"width":710,"height":12}},{"id":"6ed82d04-815f-4cae-885d-44169717b769","block_type":"box","text":"reorganization and liquidation proceedings. Although the terms of such financing may result in","page_number":409,"box":{"x":117,"y":165,"width":701,"height":12}},{"id":"42e86c93-1c0d-4b50-ab1d-de542ffd0f43","block_type":"box","text":"significant financial returns to the Fund, they involve a substantial degree of risk. The level of analytical","page_number":409,"box":{"x":116,"y":180,"width":768,"height":12}},{"id":"f94e4ccc-ef20-4351-91b6-a5e5601c5684","block_type":"box","text":"sophistication, both financial and legal, necessary for successful financing to companies experiencing","page_number":409,"box":{"x":116,"y":196,"width":758,"height":12}},{"id":"a39e40b7-343f-4938-a3ee-3028a97034d5","block_type":"box","text":"significant business and financial difficulties is unusually high.","page_number":409,"box":{"x":116,"y":211,"width":461,"height":12}},{"id":"d9188dbd-0a5c-4cf8-a302-e18fff60f372","block_type":"box","text":"Credit Linked Securities.","page_number":409,"box":{"x":117,"y":242,"width":195,"height":10}},{"id":"389c3166-feca-4384-8746-f28d71ed78fa","block_type":"box","text":"Among the income producing securities in which a Fund may invest are","page_number":409,"box":{"x":313,"y":242,"width":541,"height":12}},{"id":"64c972b9-00c6-4a6c-959c-77ee24d79001","block_type":"box","text":"credit linked securities, which are issued by a limited purpose trust or other vehicle that, in turn, invests","page_number":409,"box":{"x":116,"y":258,"width":768,"height":12}},{"id":"edfca1db-8a55-4689-973c-f68f2ac967b8","block_type":"box","text":"in a derivative instrument or basket of derivative instruments, such as credit default swaps, interest rate","page_number":409,"box":{"x":117,"y":273,"width":771,"height":12}},{"id":"3fbacb71-481d-45f6-b39e-664866e9b7dd","block_type":"box","text":"swaps and other securities, in order to provide exposure to certain fixed-income markets. For instance,","page_number":409,"box":{"x":116,"y":289,"width":768,"height":12}},{"id":"ae190b0b-0245-4464-8072-167e49671c5a","block_type":"box","text":"a Fund may invest in credit linked securities as a cash management tool in order to gain exposure to a","page_number":409,"box":{"x":116,"y":304,"width":765,"height":12}},{"id":"85cbee02-a88c-4b43-a4a4-3e86b755a868","block_type":"box","text":"certain market and/or to remain fully invested when more traditional income producing securities are","page_number":409,"box":{"x":116,"y":320,"width":748,"height":12}},{"id":"af560d46-4ae4-4908-8149-41e440543255","block_type":"box","text":"not available.","page_number":409,"box":{"x":117,"y":335,"width":103,"height":10}},{"id":"df928680-c9d3-4d3c-ac8d-1a4842cc7f1b","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive","page_number":409,"box":{"x":117,"y":366,"width":770,"height":12}},{"id":"54dc6c1e-7da8-4a8d-a21b-9549a2c97acb","block_type":"box","text":"periodic income payments (in the form of distributions) and payment of principal at the end of the term","page_number":409,"box":{"x":117,"y":382,"width":761,"height":12}},{"id":"007d6e37-ab25-493f-b297-19cf56179aaa","block_type":"box","text":"of the security.","page_number":409,"box":{"x":116,"y":397,"width":114,"height":12}},{"id":"d35181ee-45c4-4384-a61f-0b56c661f9a4","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s","page_number":409,"box":{"x":117,"y":428,"width":748,"height":12}},{"id":"27a8c198-0311-43d1-b827-91d805e2b70e","block_type":"box","text":"potential obligations to, the counterparties to the derivative instruments and other securities in which","page_number":409,"box":{"x":117,"y":444,"width":747,"height":12}},{"id":"ff59adf5-5749-430a-b73b-8dd0a3a0a810","block_type":"box","text":"the issuer invests. For instance, the issuer may sell one or more credit default swaps, under which the","page_number":409,"box":{"x":116,"y":459,"width":762,"height":12}},{"id":"450af90c-0d6d-4312-bae6-2b1c30f9bbee","block_type":"box","text":"issuer would receive a stream of payments over the term of the swap agreements provided that no","page_number":409,"box":{"x":117,"y":475,"width":736,"height":12}},{"id":"ea6cf51a-5d2a-4e78-afb4-d1c8ced8de10","block_type":"box","text":"event of default has occurred with respect to the referenced debt obligation upon which the swap is","page_number":409,"box":{"x":116,"y":490,"width":741,"height":12}},{"id":"23d0fc79-1a62-41ed-b79f-a35bf178a046","block_type":"box","text":"based. If a default occurs, the stream of payments may stop and the issuer would be obligated to pay","page_number":409,"box":{"x":117,"y":506,"width":756,"height":12}},{"id":"b02d6534-0d2a-41f7-bf0f-b2a63425ca8b","block_type":"box","text":"the counterparty the par (or other agreed upon value) of the referenced debt obligation. This, in turn,","page_number":409,"box":{"x":116,"y":521,"width":749,"height":12}},{"id":"dced10ef-07cf-4c86-a0be-6dc2d7bd21cb","block_type":"box","text":"would reduce the amount of income and principal that","page_number":409,"box":{"x":116,"y":537,"width":404,"height":12}},{"id":"c8f11d17-9cd5-4ce0-89fe-dc8efe9d9e1c","block_type":"box","text":"a Fund would receive. A Fund’s investments in","page_number":409,"box":{"x":521,"y":537,"width":351,"height":9}},{"id":"7c19b8b6-d287-410b-b22d-bb7f44882f00","block_type":"box","text":"these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":409,"box":{"x":116,"y":552,"width":750,"height":12}},{"id":"b6b89179-a7a7-4dc3-a073-2fcad76a8cb8","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk","page_number":409,"box":{"x":116,"y":568,"width":766,"height":12}},{"id":"32c0d466-3683-46f0-ab83-c7d633453deb","block_type":"box","text":"and management risk. It is also expected that the securities will be exempt from registration under the","page_number":409,"box":{"x":116,"y":583,"width":761,"height":12}},{"id":"d4f81204-4997-4abb-9b29-f1135f68d1bc","block_type":"box","text":"Securities Act. Accordingly, there may be no established trading market for the securities and they may","page_number":409,"box":{"x":116,"y":599,"width":771,"height":12}},{"id":"0c828c39-e6a4-4c80-a7d6-d5cd1b190e9e","block_type":"box","text":"constitute illiquid investments.","page_number":409,"box":{"x":116,"y":614,"width":227,"height":12}},{"id":"8a13d425-f3dc-4d30-9e8f-49b7ad00b98a","block_type":"box","text":"Debt Securities.","page_number":409,"box":{"x":116,"y":645,"width":126,"height":10}},{"id":"ff489d95-a74b-428b-bc8b-539c7dd1e0c8","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will","page_number":409,"box":{"x":243,"y":645,"width":633,"height":11}},{"id":"6e2dd3f6-092d-4601-ac5b-4335acd373d6","block_type":"box","text":"not make timely payments of principal and interest. The degree of credit risk depends on the issuer’s","page_number":409,"box":{"x":117,"y":661,"width":746,"height":12}},{"id":"091feb05-c52a-47a3-9924-0c5fb8c5e8bf","block_type":"box","text":"financial condition and on the terms of the debt securities. Changes in an issuer’s credit rating or the","page_number":409,"box":{"x":116,"y":676,"width":744,"height":12}},{"id":"84b6d564-4592-4f5a-9326-4856f4fb66d4","block_type":"box","text":"market’s perception of an issuer’s creditworthiness may also affect the value of a Fund’s investment in","page_number":409,"box":{"x":117,"y":692,"width":757,"height":12}},{"id":"0c560835-29fa-4e65-83fb-9e0e17fcb299","block_type":"box","text":"that issuer. Credit risk is reduced to the extent a Fund limits its debt investments to U.S. Government","page_number":409,"box":{"x":116,"y":707,"width":749,"height":10}},{"id":"d98a6cea-f629-4ad1-bbd9-db69d499735a","block_type":"box","text":"Securities.","page_number":409,"box":{"x":116,"y":723,"width":77,"height":9}},{"id":"d6519f9b-db97-44ea-88bc-518f66fb3ba8","block_type":"box","text":"All debt securities, however, are subject to interest rate risk. This is the risk that the value of the","page_number":409,"box":{"x":116,"y":754,"width":709,"height":12}},{"id":"13fdb989-58e9-4dc1-ba6a-b26d3392ee0c","block_type":"box","text":"security may fall when interest rates rise. If interest rates move sharply in a manner not anticipated by","page_number":409,"box":{"x":116,"y":769,"width":755,"height":12}},{"id":"7b4f9e18-1cad-4922-8b85-d2a796447c98","block_type":"box","text":"Fund management, a Fund’s investments in debt securities could be adversely affected and the Fund","page_number":409,"box":{"x":117,"y":785,"width":752,"height":12}},{"id":"851d4dd0-0cac-4ae3-bd61-48145242d603","block_type":"box","text":"could lose money. In general, the market price of debt securities with longer maturities will go up or","page_number":409,"box":{"x":116,"y":800,"width":735,"height":12}},{"id":"8ea0eccc-e292-45db-b70c-83a462443d3d","block_type":"box","text":"down more in response to changes in interest rates than will the market price of shorter-term debt","page_number":409,"box":{"x":116,"y":816,"width":725,"height":12}},{"id":"aaaf10ad-2143-4207-bc73-3f8229485150","block_type":"box","text":"securities.","page_number":409,"box":{"x":116,"y":831,"width":80,"height":10}},{"id":"b726e9be-dd1c-42c1-99b9-a3badda3b4b2","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended","page_number":409,"box":{"x":117,"y":862,"width":744,"height":12}},{"id":"75c374d1-1b10-4c7c-b6c1-1f7a617626a5","block_type":"box","text":"because of slower than expected principal payments. This may lock in a below-market interest rate and","page_number":409,"box":{"x":117,"y":878,"width":771,"height":12}},{"id":"15056404-15e5-4303-9e2c-288ea6c560d1","block_type":"box","text":"II-11","page_number":409,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"2f0b4def-9d9a-4325-991f-142d2dcc8704","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":409,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"88fee72a-f6c6-43d0-8b71-9768ea315313","block_type":"box","text":"extend the duration of these fixed-income securities, especially mortgage-related securities, making","page_number":410,"box":{"x":116,"y":87,"width":744,"height":12}},{"id":"f3eb3af3-d93d-42ed-a7ad-da6cf44e9b53","block_type":"box","text":"them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, these","page_number":410,"box":{"x":116,"y":102,"width":755,"height":13}},{"id":"6ddc0314-8e46-4892-8ea0-0fcfe4925508","block_type":"box","text":"securities may exhibit additional volatility and lose value. This is known as extension risk.","page_number":410,"box":{"x":116,"y":118,"width":665,"height":12}},{"id":"494e87f5-7020-49de-9c0a-4e171e302d68","block_type":"box","text":"The value of fixed-income securities in the Funds can be expected to vary inversely with changes in","page_number":410,"box":{"x":116,"y":146,"width":745,"height":12}},{"id":"c078cfa0-3387-41db-8ebb-21ed2cfca54c","block_type":"box","text":"prevailing interest rates. Fixed-income securities with longer maturities, which tend to produce higher","page_number":410,"box":{"x":117,"y":162,"width":753,"height":12}},{"id":"b1120090-b7ba-4a5d-b607-c862945e0b3d","block_type":"box","text":"yields, are subject to potentially greater capital appreciation and depreciation than securities with","page_number":410,"box":{"x":116,"y":178,"width":723,"height":11}},{"id":"6e2b6411-fa32-4935-b9be-7c13c697a1d5","block_type":"box","text":"shorter maturities. The Funds are not restricted to any maximum or minimum time to maturity in","page_number":410,"box":{"x":116,"y":193,"width":714,"height":12}},{"id":"3415a52b-d413-4892-85f1-44c124aaf77b","block_type":"box","text":"purchasing individual portfolio securities, and the average maturity of a Fund’s assets will vary.","page_number":410,"box":{"x":117,"y":208,"width":707,"height":12}},{"id":"788255e9-ac30-4647-8d0f-17b6820df14a","block_type":"box","text":"Floating and Variable Rate Securities","page_number":410,"box":{"x":116,"y":237,"width":277,"height":12}},{"id":"b8776594-cfa6-4752-af62-04bfaf9e1fc4","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable","page_number":410,"box":{"x":395,"y":237,"width":493,"height":12}},{"id":"2e6daaee-6f4e-4bb4-ab61-b20a197fbce9","block_type":"box","text":"coupon rate. Securities with floating or variable interest rates can be less sensitive to interest rate","page_number":410,"box":{"x":116,"y":252,"width":728,"height":12}},{"id":"18281bea-9d3f-452d-acba-7a7942c89169","block_type":"box","text":"changes than securities with fixed interest rates, but may decline in value if their interest rates do not","page_number":410,"box":{"x":116,"y":268,"width":752,"height":12}},{"id":"efa9989f-5676-4556-b662-2eb03d84ee53","block_type":"box","text":"rise as much, or as quickly, as interest rates in general. Conversely, floating rate securities will not","page_number":410,"box":{"x":117,"y":283,"width":732,"height":12}},{"id":"78baf565-6646-48ac-b50c-ceb4f9c451ed","block_type":"box","text":"generally increase in value if interest rates decline. The","page_number":410,"box":{"x":116,"y":299,"width":415,"height":12}},{"id":"e947331e-30af-4c43-9d1a-9cae22c94eb1","block_type":"box","text":"impact of interest rate changes on floating rate","page_number":410,"box":{"x":532,"y":299,"width":350,"height":12}},{"id":"edbde54e-7df7-4cc8-ac6b-c158abfaafa2","block_type":"box","text":"investments is typically mitigated by the periodic interest rate reset of the investments. Benchmark","page_number":410,"box":{"x":117,"y":314,"width":733,"height":12}},{"id":"c0552351-d305-4015-8381-fa5995b3531a","block_type":"box","text":"interest rates used for floating and variable rate securities may not accurately track market interest","page_number":410,"box":{"x":117,"y":330,"width":734,"height":12}},{"id":"1ae6ae1b-2353-4479-b72c-a5dee65f0486","block_type":"box","text":"rates.","page_number":410,"box":{"x":117,"y":346,"width":45,"height":9}},{"id":"c992a922-c99e-4c3b-b89c-a48531a39b24","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":410,"box":{"x":117,"y":374,"width":179,"height":9}},{"id":"ce1a23b5-4a62-47f3-935b-14650988bae8","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income","page_number":410,"box":{"x":297,"y":374,"width":577,"height":12}},{"id":"870836db-bee2-495a-83b7-65f88b56da7e","block_type":"box","text":"securities or other instruments whose principal value is periodically adjusted according to the rate of","page_number":410,"box":{"x":116,"y":389,"width":746,"height":12}},{"id":"e4c38b7e-ac8a-4195-bc5b-c412bb274bf7","block_type":"box","text":"inflation. Two structures are common. The U.S. Treasury and some other issuers use a structure that","page_number":410,"box":{"x":117,"y":405,"width":755,"height":12}},{"id":"cd84463f-f427-46d4-8047-c213dae7e373","block_type":"box","text":"accrues inflation into the principal value of the bond. Most other issuers pay out the Consumer Price","page_number":410,"box":{"x":116,"y":420,"width":747,"height":12}},{"id":"5a6ba433-91b4-433f-88b8-aefcc3cee1a4","block_type":"box","text":"Index (“CPI”) accruals as part of a semi-annual coupon.","page_number":410,"box":{"x":117,"y":436,"width":417,"height":12}},{"id":"7b5ea223-4c5f-47f4-85e7-9a863762df80","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years,","page_number":410,"box":{"x":117,"y":464,"width":728,"height":12}},{"id":"57314886-ba9a-40a4-9a99-fbd9eadb3c64","block_type":"box","text":"although it is possible that securities with other maturities will be issued in the future. The U.S.","page_number":410,"box":{"x":116,"y":480,"width":703,"height":12}},{"id":"47df56a1-99b9-43d6-9b8a-1869a190855b","block_type":"box","text":"Treasury securities pay interest on a semi-annual basis, equal to a fixed percentage of the inflation","page_number":410,"box":{"x":116,"y":495,"width":738,"height":12}},{"id":"a830d836-ed50-4928-8ec3-6b6c973b373e","block_type":"box","text":"adjusted principal amount. For example, if a Fund purchased an inflation-indexed bond with a par","page_number":410,"box":{"x":116,"y":511,"width":727,"height":12}},{"id":"85a945b2-61cf-47a9-be3c-5fe9c29e1195","block_type":"box","text":"value of $1,000 and a 3% real rate of return coupon (payable 1.5% semi-annually), and inflation over","page_number":410,"box":{"x":116,"y":525,"width":753,"height":13}},{"id":"677932d6-a4b3-487c-af26-75e274c719b9","block_type":"box","text":"the first six months was 1%, the mid-year par value of the bond would be $1,010 and the first semi","page_number":410,"box":{"x":116,"y":541,"width":736,"height":13}},{"id":"48a0bc7e-0e3b-4e81-be8e-48cd54ef6ff0","block_type":"box","text":"annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half of the","page_number":410,"box":{"x":116,"y":556,"width":766,"height":13}},{"id":"6ad9d398-8bed-47ae-99e2-0e342364325a","block_type":"box","text":"year resulted in the whole year’s inflation equaling 3%, the end-of-year par value of the bond would be","page_number":410,"box":{"x":116,"y":573,"width":764,"height":12}},{"id":"d3bc82c5-62a3-456b-82e5-55e86d75ee48","block_type":"box","text":"$1,030 and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":410,"box":{"x":116,"y":587,"width":689,"height":13}},{"id":"114789cc-bd62-44b8-85c0-952f2ef503e4","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds","page_number":410,"box":{"x":117,"y":616,"width":747,"height":12}},{"id":"48e90dc7-2e53-416a-8efe-6814db8e3c0d","block_type":"box","text":"will be adjusted downward, and, consequently, the interest payable on these securities (calculated with","page_number":410,"box":{"x":116,"y":632,"width":769,"height":12}},{"id":"a2c198aa-dd9a-44ba-9ed0-92e6d6edb71d","block_type":"box","text":"respect to a smaller principal amount) will be reduced. Repayment of the original bond principal upon","page_number":410,"box":{"x":117,"y":647,"width":754,"height":13}},{"id":"30a0475a-370f-4d25-83ef-2d2f16981949","block_type":"box","text":"maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds,","page_number":410,"box":{"x":117,"y":663,"width":749,"height":12}},{"id":"64dadbd9-d0dd-487a-9584-44507bb21483","block_type":"box","text":"even during a period of deflation. However, the current market value of the bonds is not guaranteed,","page_number":410,"box":{"x":116,"y":678,"width":742,"height":13}},{"id":"a5733e7a-d7ce-4295-9da2-e8eb04ee0951","block_type":"box","text":"and will fluctuate. Certain Funds may also invest in other inflation related bonds which may or may not","page_number":410,"box":{"x":116,"y":694,"width":758,"height":12}},{"id":"c861539e-3344-45e3-a337-34b69ea0fa9b","block_type":"box","text":"provide a similar guarantee. If a guarantee of principal is not provided, the adjusted principal value of","page_number":410,"box":{"x":117,"y":709,"width":748,"height":13}},{"id":"744e8029-9dfa-4455-bc6f-deb75e22e64f","block_type":"box","text":"the bond repaid at maturity may be less than the original principal. In addition, if the Fund purchases","page_number":410,"box":{"x":116,"y":725,"width":744,"height":12}},{"id":"a1f9d409-211f-4a85-91bf-24d60bb44a59","block_type":"box","text":"inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign inflation","page_number":410,"box":{"x":117,"y":740,"width":761,"height":13}},{"id":"e04a393b-b0b3-4da2-bd6a-58bc45c64cc9","block_type":"box","text":"index may not be correlated to the rate of inflation in the United States.","page_number":410,"box":{"x":117,"y":756,"width":523,"height":12}},{"id":"1a70819d-1abd-4d12-8b12-b47b57c390a9","block_type":"box","text":"The value of inflation-indexed bonds is expected to change in response to changes in real interest","page_number":410,"box":{"x":116,"y":784,"width":727,"height":12}},{"id":"91817b22-c265-45eb-8c65-c292bfbffe18","block_type":"box","text":"rates. Real interest rates, in turn, are tied to the relationship between nominal interest rates and the","page_number":410,"box":{"x":117,"y":800,"width":736,"height":12}},{"id":"d56ce4e5-c297-4e53-a45b-a618aeb36d67","block_type":"box","text":"rate of inflation. Therefore, if inflation were to rise at a faster rate than nominal interest rates, real","page_number":410,"box":{"x":117,"y":815,"width":717,"height":12}},{"id":"5dd73142-91ba-40a1-8806-b5bbe81d158d","block_type":"box","text":"interest rates might decline, leading to an increase in value of inflation-indexed bonds. In contrast, if","page_number":410,"box":{"x":117,"y":831,"width":743,"height":12}},{"id":"719c87a5-20ae-4e77-a415-b4e84683bae7","block_type":"box","text":"nominal interest rates increased at a faster rate than inflation, real interest rates might rise, leading to a","page_number":410,"box":{"x":117,"y":846,"width":769,"height":12}},{"id":"8374cee8-e3d9-4f02-8fb9-ea05622bd198","block_type":"box","text":"decrease in value of inflation-indexed bonds. There can be no assurance, however, that the value of","page_number":410,"box":{"x":116,"y":862,"width":749,"height":11}},{"id":"d79c30fa-bd86-4152-a1f4-381434978ab3","block_type":"box","text":"inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":410,"box":{"x":117,"y":877,"width":577,"height":12}},{"id":"75af5122-50ef-4797-a97c-5e9950d1b3f8","block_type":"box","text":"II-12","page_number":410,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"8ee189b2-10f4-4e2d-8008-3186d34deea1","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":410,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f888b766-58c8-42ca-ad04-e677736f9c0e","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term","page_number":411,"box":{"x":116,"y":87,"width":725,"height":12}},{"id":"939ebf5d-e7d7-40b6-849e-9ba866915cdc","block_type":"box","text":"increases in inflation may lead to a decline in value. If interest rates rise due to reasons other than","page_number":411,"box":{"x":117,"y":102,"width":731,"height":13}},{"id":"00aa0594-e86e-4e34-9d55-e91108bd829f","block_type":"box","text":"inflation (for example, due to changes in currency exchange rates), investors in these securities may","page_number":411,"box":{"x":117,"y":118,"width":749,"height":12}},{"id":"fce13435-7cb5-4a29-a854-d8e244626bad","block_type":"box","text":"not be protected to the extent that the increase is not reflected in the bond’s inflation measure.","page_number":411,"box":{"x":117,"y":134,"width":704,"height":11}},{"id":"44660a9e-d20f-4225-9567-57bf927e1516","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is","page_number":411,"box":{"x":117,"y":163,"width":750,"height":13}},{"id":"f57354a6-909e-4f61-b3d7-a64c25da01dd","block_type":"box","text":"the Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S.","page_number":411,"box":{"x":116,"y":179,"width":739,"height":12}},{"id":"3a4f25dd-f3b2-47ba-9681-7b35ab86790f","block_type":"box","text":"Bureau of Labor Statistics. The CPI-U is a measurement of changes in the cost of living, made up of","page_number":411,"box":{"x":117,"y":194,"width":747,"height":13}},{"id":"7280d820-328a-4c6e-a0dd-a61b781226a3","block_type":"box","text":"components such as housing, food, transportation and energy. Inflation-indexed bonds issued by a","page_number":411,"box":{"x":116,"y":210,"width":739,"height":12}},{"id":"83a04b4d-9834-4e94-ab9b-f829cf4b8d82","block_type":"box","text":"foreign government are generally adjusted to reflect a comparable inflation index, calculated by that","page_number":411,"box":{"x":116,"y":225,"width":743,"height":13}},{"id":"a121821a-3199-4899-9257-2bc6fe739221","block_type":"box","text":"government. There can be no assurance that the CPI-U or any foreign inflation index will accurately","page_number":411,"box":{"x":116,"y":241,"width":744,"height":12}},{"id":"55f293b7-6666-40c3-9caa-5093a3cf7efc","block_type":"box","text":"measure the real rate of inflation in the prices of goods and services. Moreover, there can be no","page_number":411,"box":{"x":117,"y":256,"width":716,"height":13}},{"id":"3f08b21e-8d25-488b-9485-a45918dad0cb","block_type":"box","text":"assurance that the rate of inflation in a foreign country will be correlated to the rate of inflation in the","page_number":411,"box":{"x":116,"y":272,"width":745,"height":12}},{"id":"cbc824fb-8d50-441e-9fa7-39dd629ddb18","block_type":"box","text":"United States.","page_number":411,"box":{"x":117,"y":287,"width":109,"height":10}},{"id":"f4ceaa58-945e-4c31-a40b-5b56e27750a7","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary","page_number":411,"box":{"x":116,"y":317,"width":750,"height":12}},{"id":"f936f238-1679-4ba4-ac8b-edd63b118aae","block_type":"box","text":"income, even though investors do not receive their principal until maturity.","page_number":411,"box":{"x":117,"y":333,"width":552,"height":12}},{"id":"d451f3ae-070b-4c83-ab91-e29fbeb33641","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":411,"box":{"x":117,"y":363,"width":265,"height":12}},{"id":"cb89d471-5ddd-458c-8e29-ce2feee7e322","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which","page_number":411,"box":{"x":383,"y":363,"width":492,"height":12}},{"id":"61450ec8-6f88-40ff-a004-7adbf1f381dd","block_type":"box","text":"are securities rated in the four highest rating categories of an NRSRO or deemed to be of equivalent","page_number":411,"box":{"x":116,"y":378,"width":750,"height":12}},{"id":"6c4f10f2-815a-4bab-bf3c-e67d941f1b43","block_type":"box","text":"quality by a Fund’s Manager. Certain Funds may invest in debt securities rated Aaa by Moody’s or","page_number":411,"box":{"x":116,"y":394,"width":734,"height":12}},{"id":"8e834902-226f-4c57-af0f-22d1f0574cb6","block_type":"box","text":"AAA by S&P. It should be noted that debt obligations rated in the lowest of the top four ratings (","page_number":411,"box":{"x":116,"y":409,"width":708,"height":12}},{"id":"80a8fdca-1d70-412b-8662-744ea3daebb4","block_type":"box","text":"i.e.","page_number":411,"box":{"x":825,"y":409,"width":20,"height":10}},{"id":"0d0da3ed-394f-489b-bf4a-8e0240865129","block_type":"box","text":",","page_number":411,"box":{"x":848,"y":417,"width":8,"height":3}},{"id":"a1c201ea-b886-436e-bb19-5f9c1b5d9def","block_type":"box","text":"“Baa” by Moody’s or “BBB” by S&P) are considered to have some speculative characteristics and are","page_number":411,"box":{"x":116,"y":425,"width":756,"height":12}},{"id":"fab4fb34-7ccc-44b1-b1bd-bf618c41b7c0","block_type":"box","text":"more sensitive to economic change than higher rated securities. If an investment grade security of a","page_number":411,"box":{"x":117,"y":440,"width":747,"height":12}},{"id":"96fb17e6-46a7-488a-8553-6ea69bb7d25f","block_type":"box","text":"Fund is subsequently downgraded below investment grade, the Fund’s Manager will consider such an","page_number":411,"box":{"x":117,"y":456,"width":761,"height":12}},{"id":"02899240-a7c1-42f2-8312-8659a7be101e","block_type":"box","text":"event in determining whether the Fund should continue to hold the security. Subject to its investment","page_number":411,"box":{"x":116,"y":471,"width":752,"height":12}},{"id":"c1850d9e-5f91-43c6-a8df-a94d5fee3175","block_type":"box","text":"strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":411,"box":{"x":116,"y":487,"width":679,"height":12}},{"id":"e6212dfd-a341-4f07-ae90-994fd654ede5","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":411,"box":{"x":116,"y":517,"width":566,"height":12}},{"id":"8a14a136-478e-4823-bf45-e83fe8997450","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":411,"box":{"x":116,"y":547,"width":296,"height":12}},{"id":"bc15bb23-fe0a-4696-b2fa-ffaafadafe18","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to","page_number":411,"box":{"x":117,"y":569,"width":711,"height":12}},{"id":"af0ce13b-917d-4daf-8328-bebfe0146c5e","block_type":"box","text":"investors as “junk bonds” are debt securities that are rated below investment grade by the major rating","page_number":411,"box":{"x":117,"y":585,"width":764,"height":12}},{"id":"79e5f6a7-8f17-4321-942f-6c013beaed52","block_type":"box","text":"agencies or are securities that Fund management believes are of comparable quality. While generally","page_number":411,"box":{"x":116,"y":600,"width":759,"height":12}},{"id":"9046188c-6f6a-4247-a95c-e4cca176bfce","block_type":"box","text":"providing greater income and opportunity for gain, non-investment grade debt securities may be","page_number":411,"box":{"x":117,"y":616,"width":715,"height":12}},{"id":"ed667466-7b01-408b-8cb4-ae06b0014edf","block_type":"box","text":"subject to greater risks than securities which have higher credit ratings, including a high risk of default,","page_number":411,"box":{"x":116,"y":631,"width":764,"height":12}},{"id":"f54daf7c-0df3-467d-852b-5853e3561ff6","block_type":"box","text":"and their yields will fluctuate over time. High yield securities will generally be in the lower rating","page_number":411,"box":{"x":116,"y":647,"width":709,"height":12}},{"id":"b2f52e9a-03bf-4611-9a94-6d266ece4755","block_type":"box","text":"categories of recognized rating agencies (rated “Ba” or lower by Moody’s or “BB” or lower by S&P) or","page_number":411,"box":{"x":116,"y":662,"width":750,"height":12}},{"id":"9dc993f4-dcfe-45b7-a278-be74be1aa77d","block_type":"box","text":"will be non-rated. The credit rating of a high yield security does not necessarily address its market","page_number":411,"box":{"x":116,"y":678,"width":726,"height":12}},{"id":"aa53b4a7-e4ac-4dae-bf5f-2a60167ef29b","block_type":"box","text":"value risk, and ratings may from time to time change, positively or negatively, to reflect developments","page_number":411,"box":{"x":116,"y":693,"width":752,"height":12}},{"id":"3c3306a1-ec3f-494c-bba0-b234021d4c62","block_type":"box","text":"regarding the issuer’s financial condition. High yield securities are considered to be speculative with","page_number":411,"box":{"x":117,"y":709,"width":737,"height":12}},{"id":"38cab998-128d-4234-98ab-d03112bafcd3","block_type":"box","text":"respect to the capacity of the issuer to timely repay principal and pay interest or dividends in","page_number":411,"box":{"x":117,"y":724,"width":682,"height":12}},{"id":"08c72751-6396-4587-8560-68674ee3792d","block_type":"box","text":"accordance with the terms of the obligation and may have more credit risk than higher rated securities.","page_number":411,"box":{"x":116,"y":740,"width":761,"height":12}},{"id":"b659076f-9359-4c91-92f0-273add58f138","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":411,"box":{"x":116,"y":770,"width":464,"height":12}},{"id":"e4335f4d-f201-436c-8f5a-1a597f4cc01e","block_type":"box","text":"• Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to","page_number":411,"box":{"x":117,"y":793,"width":731,"height":12}},{"id":"f7f3bee7-6478-4271-be8d-16bf6585ba87","block_type":"box","text":"adverse changes in the issuer’s industry and to general economic conditions. Issuers of junk","page_number":411,"box":{"x":150,"y":808,"width":686,"height":12}},{"id":"268ff849-2e22-4b65-a5b3-19db29d65463","block_type":"box","text":"bonds may be unable to meet their interest or principal payment obligations because of an","page_number":411,"box":{"x":150,"y":823,"width":669,"height":13}},{"id":"f9a18b46-3d45-4f27-a0a5-aa0762787260","block_type":"box","text":"economic downturn, specific issuer developments or the unavailability of additional financing.","page_number":411,"box":{"x":150,"y":839,"width":695,"height":12}},{"id":"4da04399-703a-47a6-872f-ee1ae3f0a250","block_type":"box","text":"• The issuers of junk bonds may have a larger amount of outstanding debt relative to their assets","page_number":411,"box":{"x":117,"y":862,"width":746,"height":12}},{"id":"fa5fe7a7-c7e4-4eb7-a7d1-e4e7a91b3541","block_type":"box","text":"than issuers of investment grade bonds. If the issuer experiences financial stress, it may be","page_number":411,"box":{"x":150,"y":877,"width":684,"height":12}},{"id":"46b3f287-86d4-4ffc-a7ff-1b2bc5614165","block_type":"box","text":"II-13","page_number":411,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"81fb9526-d29d-49cf-93db-367b49b99194","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":411,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"fcd6a720-0699-4d56-90b3-ee8a1e161ebc","block_type":"box","text":"unable to meet its debt obligations. The issuer’s ability to pay its debt obligations also may be","page_number":412,"box":{"x":150,"y":87,"width":697,"height":12}},{"id":"3f344fa0-03d3-40f5-8199-2764f2703c47","block_type":"box","text":"lessened by specific issuer developments, or the unavailability of additional financing. Issuers of","page_number":412,"box":{"x":150,"y":102,"width":717,"height":13}},{"id":"933ab3f5-6a13-4fc7-9916-af9e14aaa84a","block_type":"box","text":"high yield securities are often in the growth stage of their development and/or involved in a","page_number":412,"box":{"x":150,"y":118,"width":677,"height":12}},{"id":"2445753f-f9f6-43b7-87e7-0e4f174db1d5","block_type":"box","text":"reorganization or takeover.","page_number":412,"box":{"x":150,"y":134,"width":204,"height":12}},{"id":"3e507b01-61f9-4500-a1e0-45381de9a548","block_type":"box","text":"• Junk bonds are frequently ranked junior to claims by other creditors. If the issuer cannot meet its","page_number":412,"box":{"x":117,"y":158,"width":754,"height":12}},{"id":"f95d43ad-b415-42aa-a0ec-56af21362ecd","block_type":"box","text":"obligations, the senior obligations are generally paid off before the junior obligations, which will","page_number":412,"box":{"x":150,"y":173,"width":706,"height":12}},{"id":"f72668ef-0ab0-4e3d-815c-4c9694322fda","block_type":"box","text":"potentially limit a Fund’s ability to fully recover principal or to receive interest payments when","page_number":412,"box":{"x":150,"y":189,"width":693,"height":12}},{"id":"422a3a56-9b9f-41a2-820d-3e49b5c3bae5","block_type":"box","text":"senior securities are in default. Thus, investors in high yield securities have a lower degree of","page_number":412,"box":{"x":150,"y":204,"width":696,"height":12}},{"id":"4c0a99e9-5ef2-4629-bc8f-63b75d0a0f74","block_type":"box","text":"protection with respect to principal and interest payments than do investors in higher rated","page_number":412,"box":{"x":150,"y":220,"width":674,"height":12}},{"id":"12e6e5b0-e742-4e19-a8d4-38c0864e63f8","block_type":"box","text":"securities.","page_number":412,"box":{"x":150,"y":236,"width":80,"height":9}},{"id":"7f912b6a-218e-4905-80ed-0d32eead2c86","block_type":"box","text":"• Junk bonds frequently have redemption features that permit an issuer to repurchase the security","page_number":412,"box":{"x":117,"y":260,"width":753,"height":12}},{"id":"ddc0ae70-149d-4f8c-9f5f-119c70f84606","block_type":"box","text":"from a Fund before it matures. If an issuer redeems the junk bonds, a Fund may have to invest the","page_number":412,"box":{"x":149,"y":275,"width":738,"height":12}},{"id":"d364be40-9b01-4fd6-9ed1-6bfbcdcb6434","block_type":"box","text":"proceeds in bonds with lower yields and may lose income.","page_number":412,"box":{"x":150,"y":291,"width":437,"height":12}},{"id":"8bd7e5d3-203c-4669-9097-b1ab28e0ef4c","block_type":"box","text":"• Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments","page_number":412,"box":{"x":117,"y":315,"width":753,"height":12}},{"id":"2da80da0-681b-4a0e-828e-4fd372285c92","block_type":"box","text":"may have a greater impact on the prices of junk bonds than on those of other higher rated fixed","page_number":412,"box":{"x":150,"y":331,"width":713,"height":12}},{"id":"36e41104-54d6-46f6-a818-a07e1005ebec","block_type":"box","text":"income securities.","page_number":412,"box":{"x":150,"y":346,"width":139,"height":10}},{"id":"bb5a224f-4705-4258-876a-41bb5d7b61e7","block_type":"box","text":"• Junk bonds may be less liquid than higher rated fixed-income securities even under normal","page_number":412,"box":{"x":117,"y":370,"width":714,"height":13}},{"id":"b6c56e51-2584-4ce1-8c5a-b05674cfb1d1","block_type":"box","text":"economic conditions. Under certain economic and/or market conditions, a Fund may have difficulty","page_number":412,"box":{"x":150,"y":386,"width":738,"height":12}},{"id":"6c3055ea-d005-47df-aeba-fc7176f13c86","block_type":"box","text":"disposing of certain high yield securities due to the limited number of investors in that sector of the","page_number":412,"box":{"x":150,"y":401,"width":734,"height":13}},{"id":"4a6d08d8-afd4-4ed0-bc07-17e42117bf87","block_type":"box","text":"market. There are fewer dealers in the junk bond market, and there may be significant differences","page_number":412,"box":{"x":150,"y":417,"width":730,"height":12}},{"id":"baa06715-04fb-4f0f-9f86-4a3dede48b10","block_type":"box","text":"in the prices quoted for junk bonds by the dealers, and such quotations may not be the actual","page_number":412,"box":{"x":150,"y":432,"width":698,"height":13}},{"id":"90309c52-c896-4103-a527-718c645b9c40","block_type":"box","text":"prices available for a purchase or sale. Because junk bonds are less liquid than higher rated","page_number":412,"box":{"x":150,"y":448,"width":688,"height":12}},{"id":"fe0e7a3d-a747-456b-9cd3-614bb2082a7f","block_type":"box","text":"bonds, judgment may play a greater role in valuing certain of a Fund’s portfolio securities than in","page_number":412,"box":{"x":150,"y":463,"width":720,"height":13}},{"id":"87fb6a53-d0d0-4ff4-a553-fef8b439474f","block_type":"box","text":"the case of securities trading in a more liquid market.","page_number":412,"box":{"x":150,"y":479,"width":398,"height":12}},{"id":"48437987-1bba-4500-9183-44b7a7d94624","block_type":"box","text":"• The secondary markets for high yield securities are not as liquid as the secondary markets for","page_number":412,"box":{"x":117,"y":503,"width":734,"height":12}},{"id":"d9063cd4-6db0-4f7a-b666-187bee38d36f","block_type":"box","text":"higher rated securities. The secondary markets for high yield securities are concentrated in","page_number":412,"box":{"x":150,"y":519,"width":680,"height":12}},{"id":"227a5559-323c-4379-ab60-7d8c31dc7e28","block_type":"box","text":"relatively few market makers and participants in the markets are mostly institutional investors,","page_number":412,"box":{"x":150,"y":534,"width":699,"height":12}},{"id":"4ed34e14-514c-433b-9f6e-821d3f2f339e","block_type":"box","text":"including insurance companies, banks, other financial institutions and mutual funds. In addition,","page_number":412,"box":{"x":150,"y":550,"width":712,"height":12}},{"id":"07b38c5e-bc3e-4709-8381-a8f8f9ffa0b0","block_type":"box","text":"the trading volume for high yield securities is generally lower than that for higher rated securities","page_number":412,"box":{"x":150,"y":565,"width":718,"height":12}},{"id":"9df8d488-57e7-4907-a953-52c952a63d1c","block_type":"box","text":"and the secondary markets could contract under adverse market or economic conditions","page_number":412,"box":{"x":150,"y":581,"width":662,"height":12}},{"id":"12f42878-6169-4282-ac50-fa9ddabd021f","block_type":"box","text":"independent of any specific adverse changes in the condition of a particular issuer. Under certain","page_number":412,"box":{"x":150,"y":596,"width":725,"height":12}},{"id":"0e8c1ba7-33e8-4581-98dc-c5703ad201d9","block_type":"box","text":"economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":412,"box":{"x":150,"y":612,"width":695,"height":12}},{"id":"2fccee45-a85b-44f3-8850-203469e024e8","block_type":"box","text":"securities due to the limited number of investors in that sector of the market. An illiquid secondary","page_number":412,"box":{"x":150,"y":627,"width":728,"height":12}},{"id":"23be2f4d-ffca-4dba-a821-fc57e257cf12","block_type":"box","text":"market may adversely affect the market price of the high yield security, which may result in","page_number":412,"box":{"x":150,"y":643,"width":678,"height":12}},{"id":"0e7bccf9-c384-47fd-9d36-a73c620bb040","block_type":"box","text":"increased difficulty selling the particular issue and obtaining accurate market quotations on the","page_number":412,"box":{"x":150,"y":658,"width":706,"height":12}},{"id":"10f7e518-f8ea-406f-9728-0506e575dd16","block_type":"box","text":"issue when valuing a Fund’s assets. Market quotations on high yield securities are available only","page_number":412,"box":{"x":150,"y":674,"width":717,"height":12}},{"id":"c2dce5af-df0d-4cef-940b-6c8f695b8c69","block_type":"box","text":"from a limited number of dealers, and such quotations may not be the actual prices available for a","page_number":412,"box":{"x":149,"y":689,"width":726,"height":12}},{"id":"fbf4d5f0-9e1f-45d5-915a-d162c71fe26e","block_type":"box","text":"purchase or sale. When the secondary market for high yield securities becomes more illiquid, or in","page_number":412,"box":{"x":150,"y":705,"width":728,"height":12}},{"id":"34ee5f1f-77a4-4983-8982-9e476c05eaf6","block_type":"box","text":"the absence of readily available market quotations for such securities, the relative lack of reliable","page_number":412,"box":{"x":150,"y":720,"width":717,"height":12}},{"id":"a1e03012-253b-4cfa-94c7-ec173565613d","block_type":"box","text":"objective data makes it more difficult to value a Fund’s securities, and judgment plays a more","page_number":412,"box":{"x":150,"y":736,"width":691,"height":12}},{"id":"decd1cf6-b3ae-4853-8ce6-0e84d5fd6376","block_type":"box","text":"important role in determining such valuations.","page_number":412,"box":{"x":150,"y":752,"width":337,"height":12}},{"id":"da166c6c-9aea-4f4e-8f5d-f14f436f9091","block_type":"box","text":"• A Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate","page_number":412,"box":{"x":117,"y":776,"width":757,"height":12}},{"id":"ea914894-09b6-4664-aa04-65d743f493f1","block_type":"box","text":"new terms with a defaulting issuer.","page_number":412,"box":{"x":150,"y":791,"width":256,"height":12}},{"id":"98143f43-9c01-43ef-aa28-cc0e2abc70a2","block_type":"box","text":"• The junk bond markets may react strongly to adverse news about an issuer or the economy, or to","page_number":412,"box":{"x":117,"y":816,"width":756,"height":12}},{"id":"095dc12a-34e5-4e8c-9015-8ae9693cdfab","block_type":"box","text":"the perception or expectation of adverse news, whether or not it is based on fundamental analysis.","page_number":412,"box":{"x":150,"y":831,"width":737,"height":12}},{"id":"da5fafa5-0b24-4ada-8cb0-74dc5e68a09c","block_type":"box","text":"Additionally, prices for high yield securities may be affected by legislative and regulatory","page_number":412,"box":{"x":149,"y":847,"width":659,"height":12}},{"id":"c524cf76-5b13-4e7e-bbb8-64fef743d5e7","block_type":"box","text":"developments. These developments could adversely affect a Fund’s NAV and investment","page_number":412,"box":{"x":150,"y":862,"width":669,"height":12}},{"id":"a17e1738-98a7-4c8e-8ea6-497c661aac60","block_type":"box","text":"practices, the secondary market for high yield securities, the financial condition of issuers of these","page_number":412,"box":{"x":150,"y":878,"width":731,"height":12}},{"id":"3eafabbb-d54c-40ae-88f3-b8758a89a414","block_type":"box","text":"II-14","page_number":412,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"4d693d8d-4a3b-49c0-b91f-09f48e400f9d","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":412,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"86fa7fdd-f198-42b0-9fde-b07641ab13e2","block_type":"box","text":"securities and the value and liquidity of outstanding high yield securities, especially in a thinly","page_number":413,"box":{"x":150,"y":87,"width":695,"height":12}},{"id":"24a5d7cd-4c91-4aa0-b7a4-534372e8579d","block_type":"box","text":"traded market. For example, federal legislation requiring the divestiture by federally insured","page_number":413,"box":{"x":150,"y":102,"width":681,"height":13}},{"id":"3543cd8d-fbaf-41fc-b6e4-b2e067b2aed0","block_type":"box","text":"savings and loan associations of their investments in high yield bonds and limiting the deductibility","page_number":413,"box":{"x":150,"y":118,"width":733,"height":12}},{"id":"12648580-f980-4510-a3b8-68abb32f9205","block_type":"box","text":"of interest by certain corporate issuers of high yield bonds adversely affected the market in the","page_number":413,"box":{"x":150,"y":134,"width":706,"height":12}},{"id":"cb6a53c7-23b9-42d2-b79b-a93bb6ebdf9d","block_type":"box","text":"past.","page_number":413,"box":{"x":150,"y":149,"width":41,"height":12}},{"id":"68158eb3-e570-4172-9a70-fc0aa7255912","block_type":"box","text":"• The rating assigned by a rating agency evaluates the issuing agency’s assessment of the safety of","page_number":413,"box":{"x":117,"y":172,"width":770,"height":12}},{"id":"8364e263-a142-4398-9002-3b24b2bc65df","block_type":"box","text":"a non-investment grade security’s principal and interest payments, but does not address market","page_number":413,"box":{"x":150,"y":187,"width":716,"height":12}},{"id":"deeea57d-77b9-4602-ae89-c6dfb2538a27","block_type":"box","text":"value risk. Because such ratings of the ratings agencies may not always reflect current conditions","page_number":413,"box":{"x":150,"y":203,"width":728,"height":12}},{"id":"fa2ee9da-bb70-48b7-a937-d21812c70a62","block_type":"box","text":"and events, in addition to using recognized rating agencies and other sources, the Manager or","page_number":413,"box":{"x":150,"y":218,"width":705,"height":12}},{"id":"a5c3342d-4f52-4217-abe4-a29ac16a8758","block_type":"box","text":"sub-adviser performs its own analysis of the issuers whose non-investment grade securities a","page_number":413,"box":{"x":150,"y":234,"width":700,"height":12}},{"id":"ce4b6654-4b2c-4215-8296-ae897e1ecde6","block_type":"box","text":"Fund holds. Because of this, the Fund’s performance may depend more on the Manager’s or","page_number":413,"box":{"x":151,"y":249,"width":693,"height":12}},{"id":"6a1b241d-66ca-4c19-8872-8dc29165dda7","block_type":"box","text":"sub-adviser’s own credit analysis than in the case of mutual funds investing in higher-rated","page_number":413,"box":{"x":150,"y":265,"width":678,"height":12}},{"id":"eefbd9b7-6cce-49c6-b40a-603700553480","block_type":"box","text":"securities.","page_number":413,"box":{"x":150,"y":280,"width":80,"height":10}},{"id":"4ce057ee-8c7c-46d6-ab1e-fe19eb306b40","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as","page_number":413,"box":{"x":117,"y":310,"width":742,"height":12}},{"id":"c7022c44-c810-49c5-a582-4e8771414379","block_type":"box","text":"those relating to the creditworthiness of issuers, the ratings and performance of the securities, the","page_number":413,"box":{"x":116,"y":325,"width":731,"height":12}},{"id":"76a8bc81-fbcf-4ea7-b3cb-f594cdb0569a","block_type":"box","text":"protections afforded the securities and the diversity of the Fund. The Manager or sub-adviser","page_number":413,"box":{"x":117,"y":341,"width":694,"height":12}},{"id":"ea3792dd-44ac-4382-9f99-b93fcab702e5","block_type":"box","text":"continuously monitors the issuers of non-investment grade securities held by the Fund for their ability","page_number":413,"box":{"x":116,"y":356,"width":755,"height":12}},{"id":"77bd7711-2902-47e3-965e-e490b99d70b6","block_type":"box","text":"to make required principal and interest payments, as well as in an effort to control the liquidity of the","page_number":413,"box":{"x":116,"y":372,"width":746,"height":12}},{"id":"f6aa9e1d-c4d7-4412-ae46-81dac983f399","block_type":"box","text":"Fund so that it can meet redemption requests. If a security’s rating is reduced below the minimum","page_number":413,"box":{"x":117,"y":387,"width":729,"height":12}},{"id":"ba6da9a2-74d0-489d-98ae-03be52d0ec2e","block_type":"box","text":"credit rating that is permitted for a Fund, the Fund’s adviser or sub-adviser will consider whether the","page_number":413,"box":{"x":116,"y":403,"width":745,"height":12}},{"id":"906063c3-af50-4049-939d-4d5dfa25e3dd","block_type":"box","text":"Fund should continue to hold the security.","page_number":413,"box":{"x":117,"y":418,"width":315,"height":12}},{"id":"0a4e1882-f364-4b9b-8fe2-cbceb1ddb6fc","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net","page_number":413,"box":{"x":117,"y":448,"width":718,"height":12}},{"id":"9d0c760e-9317-4845-8780-5fb19b0c598d","block_type":"box","text":"redemptions, the Fund could be forced to sell its holdings without regard to the investment merits,","page_number":413,"box":{"x":117,"y":463,"width":729,"height":12}},{"id":"717f2ece-74eb-4394-b7c5-7a847801bf9f","block_type":"box","text":"thereby decreasing the assets upon which the Fund’s rate of return is based.","page_number":413,"box":{"x":116,"y":479,"width":575,"height":12}},{"id":"9779d3e3-9787-4c65-b0be-fe883a463121","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons,","page_number":413,"box":{"x":116,"y":508,"width":733,"height":12}},{"id":"281e09dc-a785-4529-af33-425c447c64ee","block_type":"box","text":"such as higher investment research costs and higher commission costs.","page_number":413,"box":{"x":116,"y":524,"width":540,"height":12}},{"id":"4b709597-40fd-469b-a502-43849b919ffc","block_type":"box","text":"Mezzanine Investments.","page_number":413,"box":{"x":116,"y":554,"width":179,"height":9}},{"id":"2be11fd6-185c-4e82-a303-8c7f18e45fa4","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a","page_number":413,"box":{"x":297,"y":553,"width":579,"height":13}},{"id":"7f494e53-78e1-4aa3-917f-06d6afac0a98","block_type":"box","text":"specific credit quality, may invest in certain high yield securities known as mezzanine investments,","page_number":413,"box":{"x":116,"y":569,"width":735,"height":12}},{"id":"f533b32a-ad69-4d42-afb8-e253521c9d5e","block_type":"box","text":"which are subordinated debt securities which are generally issued in private placements in connection","page_number":413,"box":{"x":116,"y":585,"width":762,"height":12}},{"id":"b5cae512-f1a1-491a-b40b-b89e525a6cca","block_type":"box","text":"with an equity security (","page_number":413,"box":{"x":116,"y":600,"width":175,"height":12}},{"id":"0a3f7898-4be3-48ca-a2d5-3d9eb3a14c9a","block_type":"box","text":"e.g.","page_number":413,"box":{"x":292,"y":603,"width":26,"height":9}},{"id":"3d83736a-87a2-48f6-b1ca-697e169660a5","block_type":"box","text":", with attached warrants). Such mezzanine investments may be issued with","page_number":413,"box":{"x":321,"y":600,"width":563,"height":12}},{"id":"8ec33f16-0b78-41ec-bb97-feca35597000","block_type":"box","text":"or without registration rights. Similar to other high yield securities, maturities of mezzanine investments","page_number":413,"box":{"x":116,"y":615,"width":767,"height":13}},{"id":"2d7962cd-99de-4e62-9175-7948c4023ad5","block_type":"box","text":"are typically seven to ten years, but the expected average life is significantly shorter at three to five","page_number":413,"box":{"x":116,"y":631,"width":738,"height":12}},{"id":"9b75030d-e39a-46b9-b63d-c9249c043f38","block_type":"box","text":"years. Mezzanine investments are usually unsecured and subordinate to other obligations of the","page_number":413,"box":{"x":116,"y":646,"width":719,"height":13}},{"id":"ee4fb0cf-94cf-4913-a426-b0f1063e9ef7","block_type":"box","text":"issuer.","page_number":413,"box":{"x":117,"y":662,"width":47,"height":10}},{"id":"01e441ca-2cbc-46d0-a20c-8403575b88d8","block_type":"box","text":"Pay-in-kind Bonds.","page_number":413,"box":{"x":116,"y":692,"width":142,"height":12}},{"id":"9a7916ed-eb24-4b57-bdf9-75737ef55b4c","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds","page_number":413,"box":{"x":266,"y":692,"width":584,"height":12}},{"id":"3514fb93-e4bd-4191-bd11-a08130d7ff01","block_type":"box","text":"which pay interest through the issuance of additi","page_number":413,"box":{"x":116,"y":707,"width":366,"height":12}},{"id":"7cc391d2-7ed5-4ab9-8b68-ad0a1625bdb1","block_type":"box","text":"onal debt or equity securities. Similar to zero","page_number":413,"box":{"x":484,"y":707,"width":338,"height":12}},{"id":"8068f43c-615a-4d56-b66e-566314e5cfcb","block_type":"box","text":"coupon obligations, pay-in-kind bonds also carry additional risk as holders of these types of","page_number":413,"box":{"x":116,"y":723,"width":694,"height":12}},{"id":"8323d125-bdd7-46a3-9fea-956b9267499b","block_type":"box","text":"securities realize no cash until the cash payment dat","page_number":413,"box":{"x":116,"y":738,"width":398,"height":12}},{"id":"e4508237-499c-4ee7-b20d-7c03759fdd6c","block_type":"box","text":"e unless a portion of such securities is sold and,","page_number":413,"box":{"x":515,"y":738,"width":364,"height":12}},{"id":"8d3478bc-72f8-43bc-9446-3b7aa798f494","block_type":"box","text":"if the issuer defaults, a Fund may obtain no return","page_number":413,"box":{"x":117,"y":754,"width":377,"height":12}},{"id":"ba1873d2-e76f-472f-8f01-3f102e27eada","block_type":"box","text":"at all on its investment. The market price of","page_number":413,"box":{"x":500,"y":754,"width":329,"height":12}},{"id":"15f1a79e-0ae4-449d-af9b-707492c1e941","block_type":"box","text":"pay-in-kind bonds is affected by interest rate changes","page_number":413,"box":{"x":117,"y":769,"width":406,"height":12}},{"id":"63d55e57-a05f-4bc2-86d0-8f1ae7da7d04","block_type":"box","text":"to a greater extent, and therefore tends to be","page_number":413,"box":{"x":529,"y":769,"width":341,"height":12}},{"id":"d3a2db84-3403-4080-829c-16f78aa66bf7","block_type":"box","text":"more volatile, than that of securities which pay inte","page_number":413,"box":{"x":117,"y":785,"width":383,"height":12}},{"id":"cb086809-8371-4035-b737-97a923f499a0","block_type":"box","text":"rest in cash. Additionally, current U.S. federal tax","page_number":413,"box":{"x":502,"y":785,"width":371,"height":12}},{"id":"573a0e6a-3224-47bb-a832-40e1e8b7a4f1","block_type":"box","text":"law requires the holder of pay-in-kind bonds to accrue","page_number":413,"box":{"x":117,"y":800,"width":408,"height":12}},{"id":"79978ca4-faec-4961-8299-24dacdfdf553","block_type":"box","text":"income with respect to these securities prior","page_number":413,"box":{"x":531,"y":800,"width":334,"height":12}},{"id":"5fe53193-dfdf-4a62-8102-aa07dc1b29d1","block_type":"box","text":"to the receipt of cash payments. To maintain it","page_number":413,"box":{"x":116,"y":816,"width":352,"height":12}},{"id":"682b0e8a-0ac5-482d-9e9c-ec289440ac72","block_type":"box","text":"s qualification as a regulated investment company","page_number":413,"box":{"x":469,"y":816,"width":379,"height":12}},{"id":"d7536e6f-47f0-4f03-8fb2-046c09fa6678","block_type":"box","text":"and avoid liability for U.S. federal income and exci","page_number":413,"box":{"x":116,"y":831,"width":380,"height":12}},{"id":"1dbe36d0-ab27-4f32-b833-142a9e4a026b","block_type":"box","text":"se taxes, each Fund may be required to distribute","page_number":413,"box":{"x":497,"y":831,"width":382,"height":12}},{"id":"c08a6b0e-7e89-412f-a68e-adb3a66c54e0","block_type":"box","text":"income accrued with respect to these securities","page_number":413,"box":{"x":117,"y":847,"width":365,"height":12}},{"id":"e506ad54-1249-4c69-ae42-31f57397226a","block_type":"box","text":"and may have to dispose of portfolio securities","page_number":413,"box":{"x":483,"y":847,"width":358,"height":12}},{"id":"c8bf069c-3473-4557-9c54-6b6a241972a5","block_type":"box","text":"under disadvantageous circumstances in order to","page_number":413,"box":{"x":117,"y":862,"width":379,"height":12}},{"id":"01bb0311-6c97-4d7e-8ab4-26262fbb0e73","block_type":"box","text":"generate cash to satisfy these distribution","page_number":413,"box":{"x":497,"y":862,"width":321,"height":12}},{"id":"18707af9-7cb4-4142-8d98-d2bf1d4bb466","block_type":"box","text":"requirements.","page_number":413,"box":{"x":117,"y":878,"width":108,"height":12}},{"id":"9ce7bf17-57ed-4604-a53e-bf318521db22","block_type":"box","text":"II-15","page_number":413,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"04a22988-e103-4f84-a714-ca64411be0da","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":413,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2f963865-8a2c-40cf-a116-5ba939b23a37","block_type":"box","text":"Supranational Entities.","page_number":414,"box":{"x":117,"y":87,"width":165,"height":12}},{"id":"5d2f9628-fcc0-48e8-9e2e-960dd6fff8fc","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of","page_number":414,"box":{"x":284,"y":87,"width":564,"height":12}},{"id":"8ca97fd7-493e-4f5f-83f0-6853c797f96a","block_type":"box","text":"such entities include the International Bank for Reconstruction and Development (the World Bank), the","page_number":414,"box":{"x":116,"y":102,"width":766,"height":13}},{"id":"6d18187b-540c-42da-93e9-4e45b9f6db3e","block_type":"box","text":"European Steel and Coal Community, the Asian Development Bank and the Inter-American","page_number":414,"box":{"x":117,"y":118,"width":683,"height":12}},{"id":"0252e12a-db0d-4ac4-acfd-03a3ad29a3b7","block_type":"box","text":"Development Bank. The government members, or “stockholders,” usually make initial capital","page_number":414,"box":{"x":117,"y":134,"width":691,"height":12}},{"id":"d08d9184-621a-4f06-918e-dcf5f6ba960c","block_type":"box","text":"contributions to the supranational entity and in many cases are committed to make additional capital","page_number":414,"box":{"x":116,"y":149,"width":748,"height":12}},{"id":"39a6fafb-4303-4698-b821-413a1cb1560d","block_type":"box","text":"contributions if the supranational entity is unable to repay its borrowings. There is no guarantee that","page_number":414,"box":{"x":116,"y":165,"width":744,"height":12}},{"id":"5ad02524-3c4e-499a-812b-8edff24743c1","block_type":"box","text":"one or more stockholders of a supranational entity will continue to make any necessary additional","page_number":414,"box":{"x":116,"y":180,"width":729,"height":12}},{"id":"5b3df455-f9e5-4e06-b408-1eb5e417df58","block_type":"box","text":"capital contributions. If such contributions are not made, the entity may be unable to pay interest or","page_number":414,"box":{"x":116,"y":196,"width":739,"height":12}},{"id":"4d7d05ac-bdc9-4219-8e28-4696a60658ac","block_type":"box","text":"repay principal on its debt securities, and a Fund may lose money on such investments.","page_number":414,"box":{"x":117,"y":211,"width":655,"height":12}},{"id":"f36d8705-cb54-4688-953e-143586d7f7db","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":414,"box":{"x":116,"y":244,"width":367,"height":12}},{"id":"fe83e7b3-3aea-4ff4-a78e-bdad1c3de540","block_type":"box","text":"Certain Funds may invest in the securities of foreign","page_number":414,"box":{"x":484,"y":244,"width":397,"height":12}},{"id":"9462729c-698e-4138-b804-728100488920","block_type":"box","text":"issuers in the form of Depositary Receipts or other securities convertible into securities of foreign","page_number":414,"box":{"x":117,"y":260,"width":722,"height":12}},{"id":"c14e4286-6127-429c-87a8-6da49b1ef233","block_type":"box","text":"issuers. Depositary Receipts may not necessarily be denominated in the same currency as the","page_number":414,"box":{"x":117,"y":275,"width":707,"height":12}},{"id":"1bc6b374-7fb1-4359-952c-208e16473891","block_type":"box","text":"underlying securities into which they may be converted. The Fund may invest in both sponsored and","page_number":414,"box":{"x":117,"y":291,"width":749,"height":12}},{"id":"52c30ff2-87ee-4747-9643-359ed7c602f8","block_type":"box","text":"unsponsored American Depositary Receipts (“ADRs”), European Depositary Receipts (“EDRs”), Global","page_number":414,"box":{"x":117,"y":306,"width":769,"height":12}},{"id":"aa7b5471-061d-40fe-82cc-1a66d2b56e23","block_type":"box","text":"Depositary Receipts (“GDRs”) and other similar global instruments. ADRs typically are issued by an","page_number":414,"box":{"x":117,"y":322,"width":743,"height":12}},{"id":"213d37ae-fc00-4f08-a7f5-5b2de070c052","block_type":"box","text":"American bank or trust company and evidence ownership of underlying securities issued by a foreign","page_number":414,"box":{"x":116,"y":337,"width":756,"height":12}},{"id":"0e8f604e-5a8d-4ecd-bb72-22cdc632d54d","block_type":"box","text":"corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are receipts","page_number":414,"box":{"x":116,"y":353,"width":757,"height":12}},{"id":"0e29dab5-fe4a-43fa-9fc1-eb9d37bb65c4","block_type":"box","text":"issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either","page_number":414,"box":{"x":117,"y":368,"width":739,"height":12}},{"id":"4acdd27e-c3e2-490f-8d0b-83927b7f74ce","block_type":"box","text":"foreign or domestic underlying securities. GDRs are depositary receipts structured like global debt","page_number":414,"box":{"x":116,"y":384,"width":732,"height":12}},{"id":"6c731217-bc50-4dc7-8c97-084715eea642","block_type":"box","text":"issues to facilitate trading on an international basis. In addition to investment risks associated with the","page_number":414,"box":{"x":117,"y":399,"width":758,"height":12}},{"id":"5ffa704d-4bdf-4624-9894-2803f699dfdc","block_type":"box","text":"underlying issuer, Depositary Receipts expose a Fund to additional risks associated with the","page_number":414,"box":{"x":117,"y":415,"width":689,"height":12}},{"id":"5a700dda-1e0a-42d1-83ee-9513321432c2","block_type":"box","text":"non-uniform terms that apply to Depositary Receipt programs, credit exposure to the depository bank","page_number":414,"box":{"x":117,"y":430,"width":754,"height":12}},{"id":"0032c8e3-ee04-4b30-831d-5293fad54111","block_type":"box","text":"and to the sponsors and other parties with whom the depository bank establishes the programs,","page_number":414,"box":{"x":116,"y":446,"width":716,"height":12}},{"id":"76590cc6-d136-49c3-b7fb-d490abdd7a2e","block_type":"box","text":"currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR, EDR and","page_number":414,"box":{"x":116,"y":461,"width":748,"height":12}},{"id":"2837ef3d-44e1-4153-aae5-2981f4253f0c","block_type":"box","text":"GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":414,"box":{"x":117,"y":477,"width":771,"height":12}},{"id":"4848c470-f70d-4517-b3a5-8c218dfde1aa","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored","page_number":414,"box":{"x":116,"y":492,"width":701,"height":12}},{"id":"9f6b4449-8aca-4fc9-ab92-c7486b0c6975","block_type":"box","text":"programs and do not provide holders with many of the shareholder benefits that come from investing in","page_number":414,"box":{"x":117,"y":508,"width":769,"height":12}},{"id":"aac5bb2d-a131-4ce8-ae67-5ed39aca8538","block_type":"box","text":"a sponsored Depositary Receipt. Available information concerning the issuer may not be as current as","page_number":414,"box":{"x":116,"y":523,"width":764,"height":12}},{"id":"0b39e255-d883-40d4-a470-894374c65492","block_type":"box","text":"for sponsored ADRs, EDRs and GDRs, and the prices of unsponsored ADRs, EDRs and GDRs may","page_number":414,"box":{"x":116,"y":539,"width":750,"height":12}},{"id":"c992fd77-c2b0-4635-9c15-2769d3a3bdf4","block_type":"box","text":"be more volatile than if such instruments were sponsored by the issuer. Depositary Receipts are","page_number":414,"box":{"x":117,"y":554,"width":718,"height":12}},{"id":"5adf4d9e-3fe6-4883-94ac-d354db6850e3","block_type":"box","text":"generally subject to the same risks as the foreign securities that they evidence or into which they may","page_number":414,"box":{"x":116,"y":570,"width":759,"height":12}},{"id":"28d6025b-777c-485a-933a-b24a78e891ca","block_type":"box","text":"be converted. Investments in ADRs, EDRs and GDRs present additional investment considerations as","page_number":414,"box":{"x":117,"y":585,"width":763,"height":12}},{"id":"46325749-849f-4997-9f39-9be2fc092634","block_type":"box","text":"described under “Foreign Investment Risks.”","page_number":414,"box":{"x":116,"y":601,"width":336,"height":12}},{"id":"4e2e4185-cec1-4ad3-b403-fb0d67facc57","block_type":"box","text":"Derivatives.","page_number":414,"box":{"x":116,"y":634,"width":99,"height":10}},{"id":"0ef6c493-d88c-4a9a-9286-8e9bcf8328ca","block_type":"box","text":"General.","page_number":414,"box":{"x":117,"y":658,"width":68,"height":10}},{"id":"69e2921b-c946-4246-bdc8-46c5522c0027","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments","page_number":414,"box":{"x":186,"y":658,"width":675,"height":12}},{"id":"04b665ad-5c2e-4377-8dd6-534efbeceeb3","block_type":"box","text":"that derive their value from one or more securities, commodities (such as gold or oil), currencies","page_number":414,"box":{"x":116,"y":674,"width":712,"height":12}},{"id":"cfaf7d4d-c053-4041-a5ca-5ed66ab84265","block_type":"box","text":"(including bitcoin and ether), interest rates, credit events or indices (a measure of value or rates, such","page_number":414,"box":{"x":117,"y":689,"width":753,"height":12}},{"id":"020af3f3-19b2-4011-90de-72893c016e5f","block_type":"box","text":"as the S&P 500 Index or the prime lending rate) or other reference asset. Derivatives may allow a","page_number":414,"box":{"x":116,"y":705,"width":724,"height":12}},{"id":"9e345e3f-8ffd-46fb-8672-8024d65857fc","block_type":"box","text":"Fund to increase or decrease the level of risk to which the Fund is exposed more quickly and efficiently","page_number":414,"box":{"x":117,"y":720,"width":764,"height":12}},{"id":"521e16a4-0bfa-4331-a7fc-9877b1939878","block_type":"box","text":"than with other transactions. Certain Funds may use derivatives to maintain a portion of their long and","page_number":414,"box":{"x":116,"y":736,"width":756,"height":12}},{"id":"3e670d16-334b-4746-828c-9d52ca2a6d43","block_type":"box","text":"short positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset","page_number":414,"box":{"x":116,"y":752,"width":761,"height":12}},{"id":"3901d663-0235-49c8-a8f3-b098ff94e548","block_type":"box","text":"or asset class it is prohibited by its investment restrictions from purchasing directly. As described","page_number":414,"box":{"x":116,"y":767,"width":716,"height":12}},{"id":"c8141672-6742-46fc-92d8-af3c32fa1e36","block_type":"box","text":"below, derivatives can be used for hedging or speculative purposes. Funds will engage in transaction","page_number":414,"box":{"x":117,"y":782,"width":755,"height":13}},{"id":"32233672-f638-4902-be0b-7ec590bbce88","block_type":"box","text":"level payment netting,","page_number":414,"box":{"x":117,"y":798,"width":161,"height":12}},{"id":"6681f53d-9de6-4db3-9170-72f2b8996cc6","block_type":"box","text":"i.e.","page_number":414,"box":{"x":285,"y":798,"width":20,"height":9}},{"id":"9b022c1c-d0f4-4f07-9c21-e80a11a13b2a","block_type":"box","text":", the payment obligations of derivatives contracts are netted against one","page_number":414,"box":{"x":308,"y":798,"width":534,"height":12}},{"id":"7c80fee5-178a-45a4-878c-d790715e04e7","block_type":"box","text":"another with the Fund receiving or paying, as the case may be, only the net amount of the two","page_number":414,"box":{"x":116,"y":813,"width":698,"height":13}},{"id":"c5378303-858e-4874-9dfb-090eb9a6977f","block_type":"box","text":"payment streams.","page_number":414,"box":{"x":117,"y":829,"width":137,"height":12}},{"id":"e5f22ddf-ed36-463a-829b-e7105689ebb3","block_type":"box","text":"Hedging.","page_number":414,"box":{"x":116,"y":862,"width":72,"height":12}},{"id":"c05f553f-24ab-4177-a41c-181cf7be67b6","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset","page_number":414,"box":{"x":189,"y":862,"width":684,"height":12}},{"id":"b7ba96de-ee21-4c9f-937f-b9de42443113","block_type":"box","text":"the risks associated with other Fund holdings. Losses on other investments may be substantially","page_number":414,"box":{"x":116,"y":878,"width":721,"height":12}},{"id":"6ae8a913-c25a-4cf9-ac20-31ff138d4f5e","block_type":"box","text":"II-16","page_number":414,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"727b9d96-2b51-4a3f-ba33-fd7d8652a788","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":414,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"bc28b12d-9cb8-44d0-8420-68278e9684fd","block_type":"box","text":"reduced by gains on a derivative that reacts in an opposite manner to market movements. Although","page_number":415,"box":{"x":117,"y":87,"width":743,"height":12}},{"id":"098b4fa4-6539-4161-a73f-fbd245ae8133","block_type":"box","text":"hedging may reduce losses, it may also reduce or eliminate gains. In addition, hedging may cause","page_number":415,"box":{"x":117,"y":103,"width":733,"height":12}},{"id":"42280640-23e6-48b0-9595-0f02d0f7e0b3","block_type":"box","text":"losses if the market moves in an unanticipated manner, or if the cost of the derivative outweighs the","page_number":415,"box":{"x":117,"y":118,"width":744,"height":12}},{"id":"1b491826-fcd7-4419-8551-44e0a4c33b44","block_type":"box","text":"benefit of the hedge. The effectiveness of hedging may be reduced by correlation risk,","page_number":415,"box":{"x":117,"y":134,"width":643,"height":12}},{"id":"9f0e698c-494f-4135-8193-5d00e70383d9","block_type":"box","text":"i.e.","page_number":415,"box":{"x":761,"y":134,"width":20,"height":9}},{"id":"71ad6ff1-6060-4544-8de9-2b9717778c99","block_type":"box","text":",","page_number":415,"box":{"x":784,"y":142,"width":2,"height":3}},{"id":"82ff3c8b-bb81-415c-baac-b7fd4c132779","block_type":"box","text":"the risk that","page_number":415,"box":{"x":793,"y":134,"width":91,"height":9}},{"id":"0826948b-3f89-47d1-bc5d-552b5c8a55ac","block_type":"box","text":"changes in the value of the derivative will not match those of the holdings being hedged as expected","page_number":415,"box":{"x":116,"y":149,"width":751,"height":12}},{"id":"3f78df32-57c2-482d-970c-35cc2003f1ee","block_type":"box","text":"by a Fund, which may result in additional losses to the Fund. The inability to close or offset derivatives","page_number":415,"box":{"x":117,"y":165,"width":762,"height":12}},{"id":"f500f081-ed73-4cd2-83af-aaada433cece","block_type":"box","text":"could also reduce the effectiveness of a Fund’s hedging. There is no assurance that a Fund’s hedging","page_number":415,"box":{"x":116,"y":180,"width":762,"height":12}},{"id":"f53d9dda-7c26-4c1d-bb37-3263c3290d18","block_type":"box","text":"will be effective. No Fund is required to use derivatives to hedge.","page_number":415,"box":{"x":116,"y":196,"width":486,"height":12}},{"id":"789c5e0e-7880-4252-b640-300115b457b8","block_type":"box","text":"Speculation.","page_number":415,"box":{"x":117,"y":227,"width":90,"height":11}},{"id":"0d3f68f9-516a-4e68-9773-d6e748c66ec7","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance","page_number":415,"box":{"x":208,"y":227,"width":638,"height":12}},{"id":"6a2a3ec6-22da-4414-9b96-35f56abcd933","block_type":"box","text":"returns. The use of a derivative is speculative if the Fund is primarily seeking to achieve gains, rather","page_number":415,"box":{"x":117,"y":242,"width":753,"height":12}},{"id":"e52fbadd-d436-47cb-91d2-690686b028f3","block_type":"box","text":"than offset the risk of other positions. To the extent a Fund invests in a derivative for speculative","page_number":415,"box":{"x":116,"y":258,"width":719,"height":11}},{"id":"7cb1e131-4eec-4398-8c59-80fe9b99ccc7","block_type":"box","text":"purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be","page_number":415,"box":{"x":117,"y":273,"width":769,"height":12}},{"id":"6783ec2e-ce83-403f-9f5d-033f7fb024a5","block_type":"box","text":"greater than the derivative’s cost, and the potential for loss in certain cases may be unlimited.","page_number":415,"box":{"x":116,"y":289,"width":699,"height":12}},{"id":"9773424e-5452-4169-89af-7b239aff8a0b","block_type":"box","text":"Regulation of Derivatives.","page_number":415,"box":{"x":116,"y":327,"width":196,"height":12}},{"id":"cdcf0a88-37fd-4d64-8cff-38d2f2766455","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":415,"box":{"x":116,"y":351,"width":352,"height":12}},{"id":"44b20ddd-ba33-4df3-978e-68ae0d42ff2f","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits","page_number":415,"box":{"x":469,"y":351,"width":416,"height":12}},{"id":"d6f118f9-d4b7-4ed7-a847-ef4d1fececed","block_type":"box","text":"a Fund to enter into Derivatives Transactions (as defined below) and certain other transactions","page_number":415,"box":{"x":116,"y":366,"width":708,"height":12}},{"id":"020f1b9e-d92f-4d79-9aa6-93ad9b2f16fa","block_type":"box","text":"notwithstanding the restrictions on the issuance of “senior securities” under Section 18 of the","page_number":415,"box":{"x":117,"y":382,"width":692,"height":12}},{"id":"799db6d6-337f-437f-9d4b-dd10b09ddd0d","block_type":"box","text":"Investment Company Act. Section 18 of the Investment Company Act, among other things, prohibits","page_number":415,"box":{"x":117,"y":397,"width":747,"height":12}},{"id":"9930b64e-101e-4edc-a3e6-b961565217ec","block_type":"box","text":"open-end funds, including the Funds, from issuing or selling any “senior security,” other than borrowing","page_number":415,"box":{"x":116,"y":413,"width":769,"height":12}},{"id":"1cc28d53-a559-4cf4-ac28-7b4cf7d85bf4","block_type":"box","text":"from a bank (subject to a requirement to maintain 300% “asset coverage”).","page_number":415,"box":{"x":116,"y":428,"width":560,"height":12}},{"id":"8491d12a-99b8-4e42-bc75-2e37eaaf716f","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap","page_number":415,"box":{"x":117,"y":459,"width":761,"height":12}},{"id":"dd61a57f-0f40-4258-84df-2b392e9ae545","block_type":"box","text":"(including a contract for differences), futures contract, forward contract, option (excluding purchased","page_number":415,"box":{"x":117,"y":475,"width":747,"height":12}},{"id":"9c5653a8-97b5-475e-922b-e4c1cfc1bdc3","block_type":"box","text":"options), any combination of the foregoing, or any similar instrument, under which a Fund is or may be","page_number":415,"box":{"x":116,"y":490,"width":764,"height":12}},{"id":"b8d24925-045d-45b1-afac-c917ed967cc2","block_type":"box","text":"required to make any payment or delivery of cash or other assets during the life of the instrument or at","page_number":415,"box":{"x":117,"y":506,"width":763,"height":12}},{"id":"03da9856-6340-4f02-970c-a68cca1cf439","block_type":"box","text":"maturity or early termination, whether as margin or settlement payment or otherwise; (2) any short sale","page_number":415,"box":{"x":117,"y":521,"width":767,"height":12}},{"id":"2a7f3ccd-8dc7-4ada-b730-6cc1ad2987dc","block_type":"box","text":"borrowing; (3) reverse repurchase agreements and similar financing transactions (e.g., recourse and","page_number":415,"box":{"x":117,"y":537,"width":750,"height":12}},{"id":"d1acaa22-b8d7-4632-82c1-20bdba9f4e20","block_type":"box","text":"non-recourse tender option bonds, and borrowed bonds), if a Fund elects to treat all of these","page_number":415,"box":{"x":117,"y":552,"width":691,"height":12}},{"id":"c248069b-f7a7-41e6-b2ea-522551ccf380","block_type":"box","text":"transactions as Derivatives Transactions under Rule 18f-4; and (4) when-issued or forward-settling","page_number":415,"box":{"x":116,"y":568,"width":738,"height":12}},{"id":"8e70eb72-b2c6-4c5d-8a67-ea2c8c99601a","block_type":"box","text":"securities (e.g., firm and standby commitments, including to-be-announced (“TBA”) commitments, and","page_number":415,"box":{"x":116,"y":583,"width":763,"height":12}},{"id":"666f92e3-38d9-4d7b-9d48-b935a9d40f6b","block_type":"box","text":"dollar rolls) and non-standard settlement cycle securities, unless such transactions meet the Delayed","page_number":415,"box":{"x":116,"y":599,"width":755,"height":12}},{"id":"259643ee-56bd-49ee-8201-ec4a860d1af7","block_type":"box","text":"Settlement Securities Provision (as defined below under “— When-Issued Securities, Delayed Delivery","page_number":415,"box":{"x":116,"y":614,"width":768,"height":12}},{"id":"549b4540-f774-48d6-8ce1-706ce1c2ff9c","block_type":"box","text":"Securities and Forward Commitments”).","page_number":415,"box":{"x":116,"y":630,"width":302,"height":12}},{"id":"49f961f0-5a7a-4a50-97b5-71fb097097b5","block_type":"box","text":"Unless a Fund is relying on the Limited Derivatives User Exception (as defined below), the Fund must","page_number":415,"box":{"x":117,"y":661,"width":754,"height":12}},{"id":"5308b720-e86f-476b-9211-aab3691dfbbe","block_type":"box","text":"comply with Rule 18f-4 with respect to its Derivatives Transactions. Rule 18f-4, among other things,","page_number":415,"box":{"x":116,"y":676,"width":737,"height":12}},{"id":"f724ba4e-2737-41d0-a214-cc3e2be2944a","block_type":"box","text":"requires a Fund to adopt and implement a comprehensive written derivatives risk management","page_number":415,"box":{"x":117,"y":692,"width":703,"height":12}},{"id":"8bdb629d-8625-4097-bef1-359a1647c14c","block_type":"box","text":"program (“DRMP”) and comply with a relative or absolute limit on Fund leverage risk calculated based","page_number":415,"box":{"x":117,"y":707,"width":755,"height":12}},{"id":"b4b24044-131a-4afa-a159-8314a13d2f76","block_type":"box","text":"on value-at-risk (“VaR”). The DRMP is administered by a “derivatives risk manager,” who is appointed","page_number":415,"box":{"x":116,"y":723,"width":755,"height":12}},{"id":"e0fcd632-2f36-4f97-9af6-a97189b65457","block_type":"box","text":"by the Fund’s Board, including a majority of the independent Directors, and periodically reviews the","page_number":415,"box":{"x":117,"y":738,"width":734,"height":12}},{"id":"2bac4e44-3017-4009-a3df-00b4ad3d300a","block_type":"box","text":"DRMP and reports to the Fund’s Board.","page_number":415,"box":{"x":117,"y":754,"width":293,"height":12}},{"id":"74321e20-14ab-4e61-9d28-ecbc4b3210c7","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and certain other requirements if a Fund’s","page_number":415,"box":{"x":117,"y":785,"width":758,"height":12}},{"id":"fce53aa2-8f32-4c49-85e9-ab2a9e9bab1f","block_type":"box","text":"“derivatives exposure” is limited to 10% of its net assets (as calculated in accordance with Rule 18f-4)","page_number":415,"box":{"x":116,"y":800,"width":754,"height":12}},{"id":"c6abe6f5-9ce0-4088-8e00-61409f98d8e3","block_type":"box","text":"and the Fund adopts and implements written policies and procedures reasonably designed to manage","page_number":415,"box":{"x":116,"y":816,"width":758,"height":12}},{"id":"a47e326a-e36b-4a1b-938c-aab56d60e589","block_type":"box","text":"its derivatives risks (the “Limited Derivatives User Exception”).","page_number":415,"box":{"x":117,"y":831,"width":466,"height":12}},{"id":"3bea54df-3bd6-4761-8780-c118d6db5722","block_type":"box","text":"Dodd-Frank Regulations.","page_number":415,"box":{"x":116,"y":862,"width":185,"height":12}},{"id":"9649fb8a-1cab-448a-b38d-0f48650486da","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd","page_number":415,"box":{"x":303,"y":862,"width":560,"height":12}},{"id":"cf76173e-2130-49e5-b304-bf8264a181b3","block_type":"box","text":"Frank”), enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter","page_number":415,"box":{"x":117,"y":878,"width":758,"height":12}},{"id":"c911b73d-2097-4f94-8dae-5fe3bc6c15e3","block_type":"box","text":"II-17","page_number":415,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"0312014c-7c2d-4e1b-ae66-683718b7ff20","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":415,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"be070315-9722-4dcd-80e1-8fad0f263fe0","block_type":"box","text":"(“OTC”) derivatives markets for the first time. While the Commodity Futures Trading Commission","page_number":416,"box":{"x":117,"y":87,"width":722,"height":12}},{"id":"0ea84592-ed90-4ba6-8225-be3735b092a8","block_type":"box","text":"(“CFTC”) and other U.S. regulators have adopted many of the required Dodd-Frank regulations, certain","page_number":416,"box":{"x":117,"y":102,"width":770,"height":13}},{"id":"d4f973a6-c729-4d3a-9301-02037c5bd1d8","block_type":"box","text":"regulations have only recently become effective and other regulations remain to be adopted. The full","page_number":416,"box":{"x":117,"y":118,"width":749,"height":12}},{"id":"4306d634-74d4-49b5-b5aa-6b133fe6f319","block_type":"box","text":"impact of Dodd-Frank on the Funds remains uncertain.","page_number":416,"box":{"x":117,"y":134,"width":411,"height":11}},{"id":"167d2f6a-962b-4d84-9a34-bb462113016c","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or with the","page_number":416,"box":{"x":117,"y":165,"width":770,"height":12}},{"id":"f581da4a-314e-4066-a3d3-f2863efe97fb","block_type":"box","text":"SEC as “security-based swap dealers”. Registered swap dealers","page_number":416,"box":{"x":116,"y":180,"width":480,"height":12}},{"id":"07ec6241-b590-44a8-8ada-252bdf6da0f9","block_type":"box","text":"and security-based swap dealers are","page_number":416,"box":{"x":596,"y":180,"width":285,"height":12}},{"id":"bba9e9b9-51e8-43be-815a-55546bfada91","block_type":"box","text":"subject to various regulatory requirements, including, but not limited to, margin, recordkeeping,","page_number":416,"box":{"x":116,"y":196,"width":708,"height":12}},{"id":"2401f11b-5a61-497d-bea0-d8fbb27c23f1","block_type":"box","text":"reporting, transparency, position limits, limitations on conflicts of interest, business conduct standards,","page_number":416,"box":{"x":117,"y":211,"width":761,"height":12}},{"id":"56dbd171-60bd-47fe-824d-3f82a424140e","block_type":"box","text":"minimum capital requirements and other regulatory requirements, which indirectly impact the Funds","page_number":416,"box":{"x":117,"y":227,"width":743,"height":12}},{"id":"95390bdd-3468-4cad-b0cd-25dc92cbc0a3","block_type":"box","text":"that enter into transactions with them.","page_number":416,"box":{"x":116,"y":242,"width":284,"height":10}},{"id":"73d82537-17b9-46ee-800a-4c164d01c01b","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed","page_number":416,"box":{"x":116,"y":273,"width":761,"height":12}},{"id":"24f550b0-96e6-4feb-b48a-d6146bbcca9c","block_type":"box","text":"in regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also","page_number":416,"box":{"x":117,"y":289,"width":719,"height":12}},{"id":"22715839-5dc1-4d31-b7ba-297c29613235","block_type":"box","text":"expected to impose similar requirements on certain security-based derivatives in the future. OTC","page_number":416,"box":{"x":116,"y":304,"width":723,"height":12}},{"id":"560311c9-f527-40dc-a42c-6620df9d7387","block_type":"box","text":"derivatives trades submitted for clearing are subject to minimum initial and variation margin","page_number":416,"box":{"x":116,"y":320,"width":681,"height":12}},{"id":"9d235789-31cc-4ad5-8228-2b589b9d0c29","block_type":"box","text":"requirements set by the relevant clearinghouse, as well as margin requirements mandated by the","page_number":416,"box":{"x":117,"y":335,"width":726,"height":12}},{"id":"eb7da76c-0da0-4b90-bebc-57db685cdc1e","block_type":"box","text":"CFTC, SEC and/or federal prudential regulators. In addition, futures commission merchants (“FCMs”),","page_number":416,"box":{"x":117,"y":351,"width":760,"height":12}},{"id":"1b1049e3-e486-4a08-9817-af9d1ffd3c75","block_type":"box","text":"who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":416,"box":{"x":116,"y":366,"width":697,"height":12}},{"id":"1085a6b2-7469-4cc4-abd9-46f2fe329923","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond","page_number":416,"box":{"x":116,"y":382,"width":772,"height":12}},{"id":"6a71c349-4f46-46a5-9e80-6ad8bc6b160a","block_type":"box","text":"any regulatory and clearinghouse minimums subject to any restrictions on such discretion in the","page_number":416,"box":{"x":116,"y":397,"width":715,"height":12}},{"id":"fdf1079b-8f2e-4926-b689-ef5309047c2b","block_type":"box","text":"documentation between the FCM and the customer. These regulatory requirements may make it more","page_number":416,"box":{"x":116,"y":413,"width":764,"height":12}},{"id":"01e647f8-2e2a-421f-9895-419a31575b81","block_type":"box","text":"difficult and costly for the Funds to enter into highly tailored or customized transactions, potentially","page_number":416,"box":{"x":116,"y":428,"width":733,"height":12}},{"id":"314f3276-9161-4293-b0e5-b24ff4b3187c","block_type":"box","text":"rendering certain investment strategies impossible or not economically feasible. If a Fund decides to","page_number":416,"box":{"x":117,"y":444,"width":747,"height":12}},{"id":"4873b1d8-23de-45a9-bdf7-082a9c3a0b62","block_type":"box","text":"execute and clear cleared OTC derivatives and/or futures contracts through execution facilities,","page_number":416,"box":{"x":116,"y":459,"width":712,"height":12}},{"id":"61410139-3a10-4f3c-8108-51309f611d42","block_type":"box","text":"exchanges or clearinghouses, either indirectly through an executing broker, clearing member FCM or","page_number":416,"box":{"x":116,"y":475,"width":756,"height":12}},{"id":"e87f08a9-6f64-425b-9a13-ca6e22a913e1","block_type":"box","text":"as a direct member, a Fund would be required to comply with the rules of the execution facility,","page_number":416,"box":{"x":116,"y":490,"width":709,"height":12}},{"id":"7b8fcdc7-9be7-443f-b903-89852d6d9bfd","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":416,"box":{"x":116,"y":506,"width":397,"height":12}},{"id":"a62d53f5-dce5-4498-a843-502b9b3071d7","block_type":"box","text":"With respect to cleared OTC derivatives and futures contracts and options on futures, a Fund will not","page_number":416,"box":{"x":116,"y":537,"width":753,"height":12}},{"id":"fbad025a-d882-44a5-a909-e5beeeba3dea","block_type":"box","text":"face a clearinghouse directly but rather will do so through a FCM that is registered with the CFTC and/","page_number":416,"box":{"x":116,"y":552,"width":759,"height":12}},{"id":"818b13c9-decb-495a-9efa-f742604516c9","block_type":"box","text":"or SEC and that acts as a clearing member. A Fund may face the indirect risk of the failure of another","page_number":416,"box":{"x":116,"y":568,"width":759,"height":12}},{"id":"ffcfa74c-45c2-4655-90ec-6807b9c8dbdb","block_type":"box","text":"clearing member customer to meet its obligations to its clearing member. Such scenario could arise","page_number":416,"box":{"x":116,"y":583,"width":744,"height":12}},{"id":"c2dbd521-7a5e-40e8-914c-38c54377a492","block_type":"box","text":"due to a default by the clearing member on its obligations to the clearinghouse simultaneously with a","page_number":416,"box":{"x":116,"y":599,"width":752,"height":12}},{"id":"defed5f0-27be-4d12-b4e1-ab5fa5506151","block_type":"box","text":"customer’s failure to meet its obligations to the clearing member.","page_number":416,"box":{"x":116,"y":614,"width":485,"height":12}},{"id":"cf4b4f5b-dd42-44d3-92d4-b3d055b00241","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they","page_number":416,"box":{"x":117,"y":645,"width":742,"height":12}},{"id":"8c88bd84-5c2c-41a2-8025-90565e0bdff5","block_type":"box","text":"clear their customers’ cleared OTC derivatives and futures contracts, instead of using such initial","page_number":416,"box":{"x":116,"y":661,"width":716,"height":12}},{"id":"b41dd2d0-1e7c-4f37-a729-a09183c8cb97","block_type":"box","text":"margin in their businesses, as was widely permitted for OTC derivatives before Dodd-Frank. While an","page_number":416,"box":{"x":117,"y":676,"width":752,"height":12}},{"id":"d526793f-773d-4139-b63c-b176c9c33302","block_type":"box","text":"FCM may require its customer to post initial margin in excess of clearinghouse requirements, and","page_number":416,"box":{"x":117,"y":692,"width":721,"height":12}},{"id":"fd4f2632-ef89-48ca-a045-702a6c1130d0","block_type":"box","text":"certain clearinghouses may share a portion of their earnings on initial margin with their clearing","page_number":416,"box":{"x":116,"y":707,"width":704,"height":12}},{"id":"b5a20d96-0cd7-4672-87b5-b64f6002c733","block_type":"box","text":"members, some portion of the initial margin that is passed through to the clearinghouse does not","page_number":416,"box":{"x":117,"y":723,"width":717,"height":12}},{"id":"af89a552-1c9e-48b5-b7a7-5d3576e9a23c","block_type":"box","text":"generate earnings for the FCM. The inability of FCMs to earn the same levels of returns on initial","page_number":416,"box":{"x":116,"y":738,"width":716,"height":12}},{"id":"1e9c840d-81d3-4982-852f-c813bd60f835","block_type":"box","text":"margin for cleared OTC derivatives as they could earn with respect to non-cleared OTC derivatives","page_number":416,"box":{"x":117,"y":754,"width":734,"height":12}},{"id":"ac899d51-14d8-4887-b573-a7480f7cbdcc","block_type":"box","text":"may cause FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives","page_number":416,"box":{"x":117,"y":769,"width":747,"height":12}},{"id":"6490eb08-a180-449c-a066-9a85333092a0","block_type":"box","text":"than swap dealers will provide for non-cleared OTC derivatives. Furthermore, customers, including the","page_number":416,"box":{"x":116,"y":785,"width":760,"height":12}},{"id":"580b47b1-f8bc-4d66-bf29-7ba02b2954b2","block_type":"box","text":"Funds, are subject to additional fees payable to FCMs with respect to cleared OTC derivatives, which","page_number":416,"box":{"x":117,"y":800,"width":751,"height":12}},{"id":"efdf1904-1a1e-4fd2-b080-6a4749a92382","block_type":"box","text":"may raise the cost to Funds of clearing as compared to trading non-cleared OTC derivatives bilaterally.","page_number":416,"box":{"x":117,"y":816,"width":763,"height":12}},{"id":"24865d3d-05fd-4661-a700-4987e8777391","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are","page_number":416,"box":{"x":116,"y":847,"width":715,"height":12}},{"id":"5c97e008-4ed2-4b82-ad5c-58c0ba6c3b7d","block_type":"box","text":"required to exchange variation margin with a Fund and may be required by applicable regulations to","page_number":416,"box":{"x":117,"y":862,"width":745,"height":12}},{"id":"4a492862-a1c3-4827-b1e7-bba3e46fa489","block_type":"box","text":"collect (and in some cases exchange) initial margin with a Fund. Both initial and variation margin may","page_number":416,"box":{"x":116,"y":878,"width":757,"height":12}},{"id":"ddcb155b-d604-4438-99a5-0f2a9201f2b7","block_type":"box","text":"II-18","page_number":416,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"2e30cf38-3030-4ecd-90ff-63bf1f520ea1","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":416,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"7800e4f6-8b66-4599-a2dd-a792ae229631","block_type":"box","text":"be comprised of cash and/or securities, subject to applicable regulatory haircuts and other restrictions.","page_number":417,"box":{"x":117,"y":87,"width":763,"height":12}},{"id":"0e8fe90f-c5fb-481e-a2b9-6d1e638ecdcd","block_type":"box","text":"Shares of investment companies (other than certain money market funds) may not be posted as","page_number":417,"box":{"x":116,"y":102,"width":719,"height":13}},{"id":"0804a7a8-b46c-427f-9531-fa68353f3e63","block_type":"box","text":"collateral under applicable regulations.","page_number":417,"box":{"x":116,"y":118,"width":291,"height":12}},{"id":"7610822e-d6d0-423c-8574-c9d69c5da8c1","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to","page_number":417,"box":{"x":116,"y":149,"width":760,"height":12}},{"id":"43a9ea79-8591-44f5-a780-f4664a396161","block_type":"box","text":"evaluate and monitor) speculative position limits (“position limits”) on the maximum speculative position","page_number":417,"box":{"x":116,"y":165,"width":771,"height":12}},{"id":"f02502ef-8f47-4484-9205-fa33e1218fdf","block_type":"box","text":"which any person, or group of persons acting in concert, may hold or control in particular contracts. In","page_number":417,"box":{"x":116,"y":180,"width":759,"height":12}},{"id":"39ac6fa6-9e28-49fa-a237-b2fbf2bf94f2","block_type":"box","text":"addition, U.S. federal position limits apply to swaps that are economically equivalent to futures","page_number":417,"box":{"x":116,"y":196,"width":703,"height":12}},{"id":"a7eb1a3a-c576-4f83-815b-757411239187","block_type":"box","text":"contracts on certain agricultural, metals and energy commodities. All positions owned or controlled by","page_number":417,"box":{"x":116,"y":211,"width":758,"height":12}},{"id":"9831b5f7-4c3e-4937-a98a-4fbc5af211a3","block_type":"box","text":"the same person or entity, even if in different accounts, must be aggregated for purposes of complying","page_number":417,"box":{"x":116,"y":227,"width":766,"height":12}},{"id":"2a6f159a-924a-448b-a93a-55d0915fd54d","block_type":"box","text":"with the speculative limits. Thus, even if a Fund does not intend to exceed applicable position limits, it","page_number":417,"box":{"x":116,"y":242,"width":758,"height":12}},{"id":"a6ed90e8-bfab-4d00-9b57-a7f54477463a","block_type":"box","text":"is possible that different clients managed by the Manager and its affiliates may be aggregated for this","page_number":417,"box":{"x":117,"y":258,"width":755,"height":12}},{"id":"2106bcfc-9717-4c85-9c6a-d21f8a2421f5","block_type":"box","text":"purpose. Therefore, the trading decisions of the Manager may have to be modified and positions held","page_number":417,"box":{"x":117,"y":273,"width":757,"height":12}},{"id":"26618c18-27ff-41e9-8868-138202645e17","block_type":"box","text":"by a Fund liquidated in order to avoid exceeding such limits. The modification of investment decisions","page_number":417,"box":{"x":117,"y":289,"width":757,"height":12}},{"id":"8298de1d-747b-49ba-89f6-040c941f6fd5","block_type":"box","text":"or the elimination of open positions, if it occurs, may adversely affect the profitability of a Fund. A","page_number":417,"box":{"x":116,"y":304,"width":723,"height":12}},{"id":"6e34b331-d961-4968-83b7-01d4254c0e2d","block_type":"box","text":"violation of position limits could also lead to regulatory action materially adverse to a Fund’s investment","page_number":417,"box":{"x":116,"y":320,"width":770,"height":12}},{"id":"dcce0296-af1c-4afa-813c-ce56a95c7240","block_type":"box","text":"strategy. A Fund may also be affected by other regimes, including those of the European Union and","page_number":417,"box":{"x":116,"y":335,"width":746,"height":12}},{"id":"c4f24847-5284-44ac-92e9-7d2b23b19494","block_type":"box","text":"United Kingdom, and trading venues that impose position limits on commodity derivative contracts.","page_number":417,"box":{"x":117,"y":351,"width":737,"height":12}},{"id":"cdc6fd54-6b76-45c8-b67c-13da3c60f5e8","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":417,"box":{"x":115,"y":382,"width":275,"height":12}},{"id":"ebfd79d0-6927-4810-80a3-e395b242fe89","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed,","page_number":417,"box":{"x":392,"y":382,"width":419,"height":12}},{"id":"f2e774ea-c787-4364-84b7-432327558769","block_type":"box","text":"proposed, or may propose in the future, legislation","page_number":417,"box":{"x":117,"y":397,"width":386,"height":12}},{"id":"90a8ae13-712d-4fd9-962c-06fccb55e614","block_type":"box","text":"similar to Dodd-Frank or other legislation that","page_number":417,"box":{"x":504,"y":397,"width":348,"height":12}},{"id":"58a14936-7870-4cd6-938d-6f43abc5c271","block_type":"box","text":"could increase the costs of participating in, or","page_number":417,"box":{"x":116,"y":413,"width":345,"height":12}},{"id":"d686b616-8679-4f83-b7df-fdcaa3921187","block_type":"box","text":"r otherwise adversely impact the liquidity of,","page_number":417,"box":{"x":461,"y":413,"width":332,"height":12}},{"id":"3791e2b1-dfe9-4aa5-8f34-3c771764df93","block_type":"box","text":"participating in the commodities markets. For","page_number":417,"box":{"x":117,"y":428,"width":341,"height":12}},{"id":"b6ff7f75-ba64-4917-9e83-452311c0b6dc","block_type":"box","text":"r example, the European Market Infrastructure","page_number":417,"box":{"x":458,"y":428,"width":351,"height":12}},{"id":"e9b73b0a-7bdc-46a4-acd1-bc95c0ac9848","block_type":"box","text":"Regulation (Regulation (EU) No 648/2012) (“EMIR”) in","page_number":417,"box":{"x":117,"y":444,"width":410,"height":12}},{"id":"b141357b-10be-414c-bd51-96cd2af03c6c","block_type":"box","text":"troduced certain requirements in respect of","page_number":417,"box":{"x":529,"y":444,"width":332,"height":12}},{"id":"8660c0cd-f9eb-4060-bbef-fd0afe84ea70","block_type":"box","text":"OTC derivatives including: (i) the mandatory clearing","page_number":417,"box":{"x":116,"y":459,"width":405,"height":12}},{"id":"970e21ae-df1a-4747-b881-811068b4e3e8","block_type":"box","text":"of OTC derivative contracts declared subject to","page_number":417,"box":{"x":522,"y":459,"width":362,"height":12}},{"id":"22f68799-ccca-4521-bf9b-43a8fa90219f","block_type":"box","text":"the clearing obligation; (ii) risk mitigation te","page_number":417,"box":{"x":116,"y":475,"width":325,"height":12}},{"id":"5aeff955-d088-4b02-a14f-a13fa38d9cdc","block_type":"box","text":"chniques in respect of uncleared OTC derivative","page_number":417,"box":{"x":442,"y":475,"width":372,"height":12}},{"id":"658188c5-db44-46f6-8b74-338a1eefb8d9","block_type":"box","text":"contracts, including the mandatory margining","page_number":417,"box":{"x":116,"y":490,"width":347,"height":12}},{"id":"655aa289-1fc5-4090-ba11-ea4332c89fef","block_type":"box","text":"of uncleared OTC derivative contracts; and","page_number":417,"box":{"x":463,"y":490,"width":332,"height":11}},{"id":"cce1185b-026c-4d12-a70e-bed9608688d9","block_type":"box","text":"(iii) reporting and recordkeeping requirements in res","page_number":417,"box":{"x":117,"y":506,"width":393,"height":12}},{"id":"f4b89b5f-ab28-4a79-8c13-a5d992be880d","block_type":"box","text":"pect of all derivatives contracts. By way of","page_number":417,"box":{"x":512,"y":506,"width":324,"height":12}},{"id":"a7ff3fd8-b1cb-4c92-b3c0-96d6cc74b8b5","block_type":"box","text":"further example, the European Union Markets in","page_number":417,"box":{"x":116,"y":521,"width":365,"height":12}},{"id":"5d137db1-83ee-4035-a921-a2d3ae6fdb69","block_type":"box","text":"Financial Instruments Directive (Directive","page_number":417,"box":{"x":482,"y":521,"width":322,"height":12}},{"id":"3cf0b618-606f-48e1-958f-cbc68c2477ac","block_type":"box","text":"2014/65/EU) and Markets in Financial Instrument","page_number":417,"box":{"x":116,"y":537,"width":373,"height":12}},{"id":"2d2fb604-7dd5-41ed-a188-4d2eb1a68609","block_type":"box","text":"s Regulation (Regulation (EU) No 600/2014)","page_number":417,"box":{"x":490,"y":537,"width":341,"height":12}},{"id":"6137e40a-d713-40a3-bcbb-088cce311b61","block_type":"box","text":"(together “MiFID II”), which have applied since January","page_number":417,"box":{"x":117,"y":552,"width":422,"height":12}},{"id":"345e0610-49a3-4c51-8bc9-b5e0e687b0bf","block_type":"box","text":"3, 2018, govern the provision of investment","page_number":417,"box":{"x":539,"y":552,"width":334,"height":12}},{"id":"fb3efe96-3b0f-43f9-8c49-8c037046ebf4","block_type":"box","text":"services and activities in relation to, as well as","page_number":417,"box":{"x":116,"y":568,"width":351,"height":11}},{"id":"1060cc9c-816a-4e93-9bc4-1e48aa565a37","block_type":"box","text":"the organized trading of, financial instruments such","page_number":417,"box":{"x":467,"y":568,"width":399,"height":12}},{"id":"feaf25b2-acc1-47dd-8dfb-7a2f6f419c34","block_type":"box","text":"as shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II","page_number":417,"box":{"x":116,"y":583,"width":728,"height":12}},{"id":"9197bf7a-22c8-4c4a-a0b1-425a0977d861","block_type":"box","text":"requires European Union Member States to apply positi","page_number":417,"box":{"x":117,"y":599,"width":420,"height":12}},{"id":"358e6a36-b05b-4f9d-a20a-0e2432ebc929","block_type":"box","text":"on limits to the size of a net position a person","page_number":417,"box":{"x":539,"y":599,"width":349,"height":12}},{"id":"5d2772ec-363b-4dac-b193-7f388c8cab48","block_type":"box","text":"can hold at any time in commodity derivatives traded on European Union trading venues and in","page_number":417,"box":{"x":116,"y":614,"width":727,"height":12}},{"id":"a89f7a54-dba6-4900-8af2-f29fcd1c4655","block_type":"box","text":"“economically equivalent” OTC contracts. If the requi","page_number":417,"box":{"x":116,"y":630,"width":400,"height":12}},{"id":"532a85be-0035-4753-b06c-0dd6d3f3f4e4","block_type":"box","text":"rements of EMIR and MiFID II apply, the cost of","page_number":417,"box":{"x":518,"y":630,"width":366,"height":12}},{"id":"1900e52e-1eb8-43e1-8f7b-d514207420fd","block_type":"box","text":"derivatives transactions is expected to increase.","page_number":417,"box":{"x":116,"y":645,"width":370,"height":12}},{"id":"58f22412-7e42-4511-a0fd-f29a2f34dc76","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain","page_number":417,"box":{"x":117,"y":676,"width":736,"height":12}},{"id":"27d534a5-02eb-4c36-83e3-65b628c9e245","block_type":"box","text":"prudentially regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to","page_number":417,"box":{"x":117,"y":692,"width":758,"height":12}},{"id":"bc1b9a62-0401-4f0e-9d30-8512818f1a26","block_type":"box","text":"include in their derivatives contracts and certain other financial contracts, terms that delay or restrict","page_number":417,"box":{"x":117,"y":707,"width":740,"height":12}},{"id":"dda4a7e0-7253-42d8-8209-2245d72b4a03","block_type":"box","text":"the rights of counterparties (such as the Funds) to terminate such contracts, foreclose upon collateral,","page_number":417,"box":{"x":116,"y":723,"width":755,"height":12}},{"id":"3f3d4d04-8d9b-40f7-94cf-7ef0c455951e","block_type":"box","text":"exercise other default rights or restrict transfers of credit support in the event that the prudentially","page_number":417,"box":{"x":116,"y":738,"width":721,"height":12}},{"id":"c557f637-9e81-4cbb-bf39-f252989ef2c7","block_type":"box","text":"regulated entity and/or its affiliates are subject to certain types of resolution or insolvency proceedings.","page_number":417,"box":{"x":117,"y":754,"width":759,"height":12}},{"id":"5f980ecf-3ff5-4ab0-9ac5-c179321278a3","block_type":"box","text":"Similar regulations and laws have been adopted in non-U.S. jurisdictions that may apply to a Fund’s","page_number":417,"box":{"x":116,"y":769,"width":741,"height":12}},{"id":"4d8fe5ee-a4f2-4618-beff-ac643c8ff80e","block_type":"box","text":"counterparties located in those jurisdictions. In particular, in the United Kingdom and the European","page_number":417,"box":{"x":116,"y":785,"width":731,"height":12}},{"id":"8f35048b-ace1-43e9-bc2e-fa2a2871b67e","block_type":"box","text":"Union, governmental authorities could reduce, eliminate or convert to equity the liabilities to a Fund of","page_number":417,"box":{"x":117,"y":800,"width":753,"height":12}},{"id":"e23d85b7-d052-43bd-a859-1dea31c20cb3","block_type":"box","text":"a counterparty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":417,"box":{"x":116,"y":816,"width":763,"height":12}},{"id":"dd80f74b-f9d0-40d1-aa36-971cb2f4671b","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely","page_number":417,"box":{"x":116,"y":831,"width":731,"height":12}},{"id":"1bf6379e-07f1-47fa-934e-441fea2d03e0","block_type":"box","text":"affect a Fund’s ability to terminate existing derivatives contracts, exercise default rights or satisfy","page_number":417,"box":{"x":116,"y":847,"width":721,"height":12}},{"id":"9773b9b1-96b1-4af6-b5e1-bc4b837fc481","block_type":"box","text":"obligations owed to it with collateral received under such contracts.","page_number":417,"box":{"x":116,"y":862,"width":502,"height":12}},{"id":"718a5752-b8bc-4e05-9375-751ac4512694","block_type":"box","text":"II-19","page_number":417,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"e9c33213-5806-4e4d-8ad6-e67fb03abba0","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":417,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"928acee2-130d-4d13-a8aa-7820ace367bc","block_type":"box","text":"Regulatory changes or actions may alter the nature of an investment in bitcoin or ether futures or","page_number":418,"box":{"x":117,"y":87,"width":723,"height":12}},{"id":"4563e536-dab6-49b6-aa3f-1120e8149b6a","block_type":"box","text":"restrict the use of bitcoin or ether or the operations of digital asset networks or exchanges on which","page_number":418,"box":{"x":117,"y":102,"width":741,"height":13}},{"id":"00e028f1-3ca0-422b-b65e-55aad351aee3","block_type":"box","text":"bitcoin or ether trades in a manner that adversely affects the price of such digital asset futures, which","page_number":418,"box":{"x":117,"y":118,"width":754,"height":12}},{"id":"3ccd9957-b772-464b-bffe-b560c8f0d8c0","block_type":"box","text":"could adversely impact a Fund.","page_number":418,"box":{"x":116,"y":134,"width":237,"height":12}},{"id":"9c7ca91a-bba9-432e-8030-2229c10a523b","block_type":"box","text":"Risk Factors in Derivatives.","page_number":418,"box":{"x":116,"y":166,"width":208,"height":9}},{"id":"370026af-5436-4c99-aeca-a1cdacf3ebcb","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":418,"box":{"x":116,"y":190,"width":627,"height":12}},{"id":"2fd71ecc-fb12-4231-993f-b7d123da71bc","block_type":"box","text":"Correlation Risk —","page_number":418,"box":{"x":117,"y":222,"width":123,"height":9}},{"id":"7f76aac1-ebc0-45c9-b034-5f1f809e23a5","block_type":"box","text":"— the risk that changes in the value of a derivative will not match the changes in the","page_number":418,"box":{"x":240,"y":222,"width":631,"height":12}},{"id":"eee412bb-e71a-4918-af48-c66b8c7ce888","block_type":"box","text":"value of the portfolio holdings that are being hedged or of the particular market or security to which the","page_number":418,"box":{"x":116,"y":237,"width":765,"height":12}},{"id":"9da969df-cc4e-4aeb-a315-20a73df1d8bb","block_type":"box","text":"Fund seeks exposure. There are a number of factors which may prevent a derivative instrument from","page_number":418,"box":{"x":117,"y":253,"width":754,"height":12}},{"id":"83af3eab-7ec3-4849-82d6-ac8cc170e04a","block_type":"box","text":"achieving the desired correlation (or inverse correlation) with an underlying asset, rate or index, such","page_number":418,"box":{"x":116,"y":268,"width":753,"height":12}},{"id":"7a4f0d77-9e55-45f0-ae73-a21b06ad82e8","block_type":"box","text":"as the impact of fees, expenses and transaction costs, the timing of pricing, and disruptions or illiquidity","page_number":418,"box":{"x":116,"y":284,"width":772,"height":12}},{"id":"e8a0d279-1058-4012-9873-74e50b66d7aa","block_type":"box","text":"in the markets for such derivative instrument.","page_number":418,"box":{"x":117,"y":299,"width":338,"height":10}},{"id":"3bcbb94f-729b-4e4b-bd1d-85c9c04cb014","block_type":"box","text":"Counterparty Risk —","page_number":418,"box":{"x":117,"y":331,"width":138,"height":12}},{"id":"6f98f163-8199-433d-8b02-3d3fb688cce7","block_type":"box","text":"—","page_number":418,"box":{"x":255,"y":337,"width":22,"height":4}},{"id":"f2a1a49f-9468-4274-8258-b236e84ba92b","block_type":"box","text":"the risk that a derivatives transaction counterparty will be unable or unwilling to","page_number":418,"box":{"x":277,"y":332,"width":590,"height":11}},{"id":"4e15a12d-a48b-402c-ae81-dbbf3c7c504a","block_type":"box","text":"make payments or otherwise honor its obligations to a Fund and the related risks of having","page_number":418,"box":{"x":117,"y":347,"width":678,"height":12}},{"id":"7a3c7cb0-ca6d-4860-a793-1ac0f8f83271","block_type":"box","text":"concentrated exposure to such a counterparty. In particular, derivatives traded in OTC markets often","page_number":418,"box":{"x":116,"y":362,"width":751,"height":12}},{"id":"b9475008-83bf-4670-a6c8-cc89d5cbdada","block_type":"box","text":"are not guaranteed by an exchange or clearing corporation and often do not require payment of","page_number":418,"box":{"x":116,"y":378,"width":714,"height":12}},{"id":"c15a343c-ec66-4018-9adc-a71be277345e","block_type":"box","text":"margin, and to the extent that the Fund has unrealized gains in such instruments or has deposited","page_number":418,"box":{"x":117,"y":394,"width":732,"height":11}},{"id":"03953164-04ec-4185-acdd-04f8d083fd2e","block_type":"box","text":"collateral with its counterparties the Fund is at risk that its counterparties will become bankrupt or","page_number":418,"box":{"x":116,"y":409,"width":725,"height":12}},{"id":"d2bd1721-d81d-4ec3-9d63-6268c030d00d","block_type":"box","text":"otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":418,"box":{"x":116,"y":424,"width":750,"height":13}},{"id":"ecd24c30-25a0-4d1e-a9e9-c3d7b5f1a222","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or","page_number":418,"box":{"x":116,"y":440,"width":768,"height":12}},{"id":"f34840d1-ec56-45f4-a658-58f0632e6d36","block_type":"box","text":"that have provided the Fund with a third-party guaranty or other credit support. When a Fund enters","page_number":418,"box":{"x":116,"y":456,"width":745,"height":12}},{"id":"c214d917-8708-4b7e-828b-9a04c8b43636","block_type":"box","text":"into a derivatives transaction that is centrally cleared (whether mandatorily or voluntarily), the Fund is","page_number":418,"box":{"x":117,"y":471,"width":754,"height":12}},{"id":"535d4e55-b35a-44b6-9d03-f6d27d7a40a7","block_type":"box","text":"subject to the credit risk of the clearing house and the clearing member through which it holds its","page_number":418,"box":{"x":116,"y":486,"width":722,"height":13}},{"id":"f65ef08d-8fc7-497e-b307-4962a7643f85","block_type":"box","text":"cleared position. Credit risk of market participants with respect to derivatives that are centrally cleared","page_number":418,"box":{"x":116,"y":502,"width":761,"height":12}},{"id":"a1ad755e-20f1-45d8-8f46-2a4d074fddf9","block_type":"box","text":"is concentrated in a few clearing houses and increasingly fewer clearing members. It is not clear how","page_number":418,"box":{"x":117,"y":517,"width":754,"height":13}},{"id":"f4d44dc1-d180-4f03-a063-e1200930fb21","block_type":"box","text":"an insolvency proceeding of a clearing house would be conducted and what impact an insolvency of a","page_number":418,"box":{"x":116,"y":533,"width":762,"height":12}},{"id":"94d53b3e-ccff-4f81-a8fb-22bfe5adf971","block_type":"box","text":"clearing house would have on the financial system. Also, a Fund will not be fully protected in the event","page_number":418,"box":{"x":116,"y":548,"width":764,"height":13}},{"id":"3e9fe878-4f75-4dcc-839a-706096f9177b","block_type":"box","text":"of the bankruptcy of a Fund’s clearing member because the Fund would be limited to recovering only a","page_number":418,"box":{"x":116,"y":564,"width":768,"height":12}},{"id":"661108d9-a5e8-4206-97db-ef389ce554f2","block_type":"box","text":"pro rata share of the funds held by the clearing member on behalf of customers by account class for","page_number":418,"box":{"x":117,"y":579,"width":747,"height":13}},{"id":"f542a38b-0b20-493c-b2a9-d851cb64d1a9","block_type":"box","text":"cleared derivatives. Although a clearing member is required to segregate assets from customers with","page_number":418,"box":{"x":116,"y":595,"width":755,"height":12}},{"id":"64e9bb39-1b62-429e-ba78-59d6a3a0300a","block_type":"box","text":"respect to cleared derivatives positions from the clearing member’s proprietary assets, if a clearing","page_number":418,"box":{"x":117,"y":610,"width":736,"height":13}},{"id":"09230add-4f14-46a3-baa1-fda4bb3532bb","block_type":"box","text":"member does not comply with the applicable regulations, or in the event of fraud or misappropriation of","page_number":418,"box":{"x":117,"y":626,"width":768,"height":12}},{"id":"2fcbce5b-af1a-4bba-85cf-a519a5c3692d","block_type":"box","text":"customer assets by a clearing member, a Fund could have only an unsecured creditor claim in an","page_number":418,"box":{"x":116,"y":642,"width":730,"height":12}},{"id":"f40ee306-b74f-457c-b5fa-5963ee972560","block_type":"box","text":"insolvency of the clearing member with respect to the assets held by the clearing member.","page_number":418,"box":{"x":117,"y":657,"width":675,"height":12}},{"id":"608b6767-a703-401b-b642-c70c05814563","block_type":"box","text":"Credit Risk","page_number":418,"box":{"x":117,"y":689,"width":82,"height":10}},{"id":"40d22dfd-a417-454a-b5c7-b10b43952515","block_type":"box","text":"— the risk that the reference entity in a credit default swap or similar derivative will not be","page_number":418,"box":{"x":203,"y":689,"width":663,"height":12}},{"id":"429fa009-411d-4c0e-b277-6c21ffc95f34","block_type":"box","text":"able to honor its financial obligations.","page_number":418,"box":{"x":116,"y":705,"width":274,"height":12}},{"id":"fad56e9a-a376-448f-ad76-60061bbe7a76","block_type":"box","text":"Currency Risk","page_number":418,"box":{"x":117,"y":737,"width":105,"height":12}},{"id":"f818f674-3ba3-4ff6-993b-545664590691","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely","page_number":418,"box":{"x":226,"y":737,"width":620,"height":12}},{"id":"d165974b-95a7-454c-ac79-356532bbaeda","block_type":"box","text":"affect the value (in U.S. dollar terms) of a derivative.","page_number":418,"box":{"x":116,"y":752,"width":386,"height":12}},{"id":"c1891a07-0081-452c-83ef-3f02d65a406d","block_type":"box","text":"Illiquidity Risk","page_number":418,"box":{"x":117,"y":785,"width":101,"height":12}},{"id":"c882947a-5ef6-4eeb-a14b-00ab73206147","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at","page_number":418,"box":{"x":222,"y":784,"width":639,"height":13}},{"id":"4663c3bb-2ef3-4dc3-a2bf-da9a6caed864","block_type":"box","text":"the time or at the price desired by a Fund in connection with payments of margin, collateral, or","page_number":418,"box":{"x":116,"y":800,"width":699,"height":12}},{"id":"562b03e0-679a-427c-81b6-e2ad5710abbd","block_type":"box","text":"settlement payments. There can be no assurance that a Fund will be able to unwind or offset a","page_number":418,"box":{"x":116,"y":815,"width":703,"height":13}},{"id":"4aa38ccd-2e81-4311-9c88-2211b02c9ea3","block_type":"box","text":"derivative at its desired price, in a secondary market or otherwise. It may, therefore, not be possible for","page_number":418,"box":{"x":116,"y":831,"width":768,"height":12}},{"id":"dae9e80c-34a2-4118-b0c9-e871af022ec5","block_type":"box","text":"the Fund to unwind its position in a derivative without incurring substantial losses (if at all). Certain","page_number":418,"box":{"x":116,"y":846,"width":733,"height":13}},{"id":"1e17f74c-a129-4ed3-8e48-abd3db67b2ac","block_type":"box","text":"OTC derivatives, including swaps and OTC options, involve substantial illiquidity risk. Illiquidity may","page_number":418,"box":{"x":116,"y":862,"width":741,"height":12}},{"id":"a6bd22ca-4d1b-4d50-a786-fd3838e579d6","block_type":"box","text":"also make it more difficult for a Fund to ascertain a market value for such derivatives. A Fund will,","page_number":418,"box":{"x":116,"y":877,"width":729,"height":12}},{"id":"f2a5ed71-b2bf-4021-ad21-0594d312e71e","block_type":"box","text":"II-20","page_number":418,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"d5b2f407-f7b4-4142-96b6-436d88a063c0","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":418,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2e97d420-f2d2-4818-82ee-c824b71e401b","block_type":"box","text":"therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":419,"box":{"x":116,"y":87,"width":724,"height":12}},{"id":"faa39368-48db-4864-8403-214ffd4c69dd","block_type":"box","text":"purchased contains a formula price at which the instrument may be terminated or sold, or (ii) for which","page_number":419,"box":{"x":117,"y":102,"width":763,"height":13}},{"id":"cb88808e-d332-4a48-bffd-bb195c47905f","block_type":"box","text":"the Manager anticipates the Fund can receive on each business day at least two independent bids or","page_number":419,"box":{"x":116,"y":118,"width":756,"height":12}},{"id":"079eae44-957d-4163-9e04-d0615c544193","block_type":"box","text":"offers, unless a quotation from only one dealer is available, in which case that dealer’s quotation may","page_number":419,"box":{"x":116,"y":134,"width":756,"height":12}},{"id":"96192810-b125-47eb-bdad-5ef25b70964c","block_type":"box","text":"be used. The illiquidity of the derivatives markets may be due to various factors, including congestion,","page_number":419,"box":{"x":117,"y":149,"width":758,"height":12}},{"id":"d300fb4b-6fdd-4144-a0a6-e447abf4ce50","block_type":"box","text":"disorderly markets, limitations on deliverable supplies, the participation of speculators, government","page_number":419,"box":{"x":116,"y":165,"width":738,"height":12}},{"id":"304d04fd-46bf-4228-a8b4-30c9f87eb334","block_type":"box","text":"regulation and intervention, and technical and operational or system failures. In addition, the liquidity of","page_number":419,"box":{"x":117,"y":180,"width":767,"height":12}},{"id":"265836c3-f9ec-498e-a5d7-925f31f5c37e","block_type":"box","text":"a market in an exchange-traded derivative contract may be adversely affected by “daily price","page_number":419,"box":{"x":116,"y":196,"width":693,"height":12}},{"id":"1cb62132-c5bc-48d7-8926-fb0c4adc02a5","block_type":"box","text":"fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":419,"box":{"x":116,"y":211,"width":747,"height":12}},{"id":"35a5ba5e-f643-45e4-838a-b7c9164adfd7","block_type":"box","text":"traded contract price during a single trading day. Once the daily limit has been reached in the contract,","page_number":419,"box":{"x":116,"y":227,"width":766,"height":12}},{"id":"11b5db61-7d99-4f34-a26c-2a2f77e1e98c","block_type":"box","text":"no trades may be entered into at a price beyond the limit, thus preventing the liquidation of open","page_number":419,"box":{"x":117,"y":242,"width":717,"height":12}},{"id":"5c25fcf5-5087-4634-86a9-f07f75510c6c","block_type":"box","text":"positions. Prices have in the past moved to the daily limit on a number of consecutive trading days with","page_number":419,"box":{"x":117,"y":258,"width":768,"height":12}},{"id":"1c4ccc20-dce3-4bfe-9e49-6fe49038cb13","block_type":"box","text":"little to no trading. If it is not possible to close an open derivative position entered into by the Fund, the","page_number":419,"box":{"x":117,"y":273,"width":762,"height":12}},{"id":"dccd499c-fb41-4ff7-b168-8fa33c402565","block_type":"box","text":"Fund would continue to be required to make daily cash payments of variation margin in the event of","page_number":419,"box":{"x":117,"y":289,"width":743,"height":12}},{"id":"7cc7bd01-5d63-4ed7-b4e3-0acee6e89171","block_type":"box","text":"adverse price movements. In such a situation, if the Fund has insufficient cash, it may have to sell","page_number":419,"box":{"x":116,"y":304,"width":732,"height":12}},{"id":"e9da59c7-606c-4a61-a099-eea044ee2804","block_type":"box","text":"portfolio securities to meet daily variation margin requirements at a time when it may be","page_number":419,"box":{"x":117,"y":320,"width":654,"height":12}},{"id":"6e8d8c2e-2b7a-4697-a60d-8ead689199bf","block_type":"box","text":"disadvantageous to do so. Fund’s investment in digital asset futures may involve illiquidity risk, as","page_number":419,"box":{"x":116,"y":335,"width":729,"height":12}},{"id":"9b0741b2-e1a5-4329-9f1a-320771b5891e","block_type":"box","text":"digital asset futures are not as heavily traded as other futures given that the digital asset futures market","page_number":419,"box":{"x":116,"y":351,"width":772,"height":12}},{"id":"5071e327-9537-4f07-9f14-7542bb1d9f03","block_type":"box","text":"is relatively new.","page_number":419,"box":{"x":117,"y":366,"width":127,"height":12}},{"id":"8c982236-adf8-4456-9644-e1302af6d7ce","block_type":"box","text":"Index Risk","page_number":419,"box":{"x":117,"y":397,"width":78,"height":10}},{"id":"4db6c21d-19e2-42c6-85ab-9728b29614a0","block_type":"box","text":"k — if the derivative is linked to the performance of an index, it will be subject to the risks","page_number":419,"box":{"x":194,"y":397,"width":656,"height":12}},{"id":"e8f28677-86a2-4012-81e8-28c7fb6239e5","block_type":"box","text":"associated with changes in that index. If the index changes, the Fund could receive lower interest","page_number":419,"box":{"x":116,"y":413,"width":728,"height":12}},{"id":"97278ed2-9658-4341-b94e-e6f57a2ed3dd","block_type":"box","text":"payments or experience a reduction in the value of the derivative to below the price that the Fund paid","page_number":419,"box":{"x":117,"y":428,"width":762,"height":12}},{"id":"432f8174-01b6-4b03-9f94-d151ca7f4289","block_type":"box","text":"for such derivative.","page_number":419,"box":{"x":116,"y":444,"width":146,"height":9}},{"id":"b1509f20-6308-4e9f-a7e0-1a3294492cb8","block_type":"box","text":"Legal Risk","page_number":419,"box":{"x":116,"y":475,"width":79,"height":12}},{"id":"dd49d45d-8cf4-49d2-9186-cc779ff2d4e5","block_type":"box","text":"k — the risk of insufficient documentation, insufficient capacity or authority of counterparty, or","page_number":419,"box":{"x":194,"y":475,"width":689,"height":12}},{"id":"7c09d863-2aba-45a6-8ab2-e72bc561a6b6","block_type":"box","text":"legality or enforceability of a contract.","page_number":419,"box":{"x":117,"y":490,"width":281,"height":12}},{"id":"64030e62-8b57-48ae-bf1d-426903877ec2","block_type":"box","text":"Leverage Risk —","page_number":419,"box":{"x":116,"y":521,"width":112,"height":12}},{"id":"0be6a594-7cb7-471e-8fe8-10e86e379e02","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and","page_number":419,"box":{"x":228,"y":521,"width":619,"height":12}},{"id":"99f189db-f3f5-47b2-bce0-cb5d9eef6cb2","block_type":"box","text":"losses. Relatively small market movements may result in large changes in the value of a derivatives","page_number":419,"box":{"x":117,"y":537,"width":744,"height":12}},{"id":"36aa3759-0a61-451f-8f81-b6d2d3c9f9ef","block_type":"box","text":"position and can result in losses that greatly exceed the amount originally invested.","page_number":419,"box":{"x":117,"y":552,"width":621,"height":12}},{"id":"1cc5fcf6-cddb-40bc-b914-dd43fb1f4690","block_type":"box","text":"Market Risk —","page_number":419,"box":{"x":116,"y":583,"width":93,"height":10}},{"id":"dd20072f-4c73-4665-9731-5482f09d7aad","block_type":"box","text":"— the risk that changes in the value of one or more markets or changes with respect to","page_number":419,"box":{"x":209,"y":583,"width":653,"height":12}},{"id":"b78d8338-5aff-497e-b13a-518d6c44e492","block_type":"box","text":"the value of the underlying asset will adversely affect the value of a derivative. In the event of an","page_number":419,"box":{"x":116,"y":599,"width":719,"height":12}},{"id":"27abc853-039c-4efb-86f1-f008d38bd7f4","block_type":"box","text":"adverse movement, a Fund may be required to pay substantial additional margin to maintain its","page_number":419,"box":{"x":116,"y":614,"width":713,"height":12}},{"id":"3cab731d-826e-4f02-8172-d95223d96110","block_type":"box","text":"position or the Fund’s returns may be adversely affected.","page_number":419,"box":{"x":117,"y":630,"width":427,"height":12}},{"id":"ce9fe06b-fe64-4104-8334-294ba47eb12b","block_type":"box","text":"Operational Risk","page_number":419,"box":{"x":117,"y":661,"width":124,"height":12}},{"id":"431bd531-1dc4-47ba-a5c4-3f0b8da368c6","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues,","page_number":419,"box":{"x":245,"y":661,"width":605,"height":12}},{"id":"e91522bc-c7d7-4923-9ec2-fd55300c6bca","block_type":"box","text":"settlement issues, systems failures, inadequate controls and human error.","page_number":419,"box":{"x":116,"y":676,"width":548,"height":12}},{"id":"0e4d1e96-71d5-4a22-ab79-a2208f3d9e3e","block_type":"box","text":"Valuation Risk","page_number":419,"box":{"x":118,"y":707,"width":106,"height":10}},{"id":"46f550a2-ef47-4c1b-aeb3-ff63985659e8","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the","page_number":419,"box":{"x":228,"y":707,"width":609,"height":12}},{"id":"3c68792d-408d-4f63-a067-29752d02903f","block_type":"box","text":"market. This is possible especially in times of market distress, since many market participants may be","page_number":419,"box":{"x":117,"y":723,"width":754,"height":12}},{"id":"faf5d878-fd0a-4de3-a734-fd0c8e70f4d8","block_type":"box","text":"reluctant to purchase complex instruments or quote prices for them. Exchanges where bitcoin or ether","page_number":419,"box":{"x":117,"y":738,"width":757,"height":12}},{"id":"37244ee6-0848-44db-bfba-a2d5c9d7dca6","block_type":"box","text":"is traded (which are the source of the price(s) used to determine the cash settlement amount for a","page_number":419,"box":{"x":117,"y":754,"width":726,"height":12}},{"id":"a1fe2f07-2a8d-4b66-9cf0-ab814f785f41","block_type":"box","text":"Fund’s bitcoin or ether futures) have experienced technical and operational issues, making bitcoin","page_number":419,"box":{"x":117,"y":769,"width":724,"height":12}},{"id":"3abb6623-7435-44b7-84de-aab7af471a32","block_type":"box","text":"prices unavailable at times. In addition, the cash market in bitcoin or ether has been the target of fraud","page_number":419,"box":{"x":117,"y":785,"width":758,"height":12}},{"id":"6afbc274-40c9-4539-8098-711f29d9d4d7","block_type":"box","text":"and manipulation, which could affect the pricing of bitcoin or ether futures contracts.","page_number":419,"box":{"x":116,"y":800,"width":620,"height":12}},{"id":"378e8be6-4e33-4de3-be2e-e1242300a7ed","block_type":"box","text":"Volatility Risk —","page_number":419,"box":{"x":118,"y":831,"width":102,"height":12}},{"id":"40023973-3b2e-49fd-9407-09179d067c22","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time","page_number":419,"box":{"x":220,"y":831,"width":619,"height":12}},{"id":"95e17d49-aec8-41f9-9523-d9fda5fab7aa","block_type":"box","text":"period. In particular, bitcoin, ether, bitcoin futures and ether futures have generally exhibited significant","page_number":419,"box":{"x":117,"y":847,"width":765,"height":12}},{"id":"6e2ad2d0-72a4-4e2e-bf7f-7d13a60a2d9b","block_type":"box","text":"price volatility relative to more traditional asset classes. Bitcoin and ether futures may also experience","page_number":419,"box":{"x":117,"y":862,"width":759,"height":12}},{"id":"5bce3baa-48c5-42c6-965a-18028e7b6f86","block_type":"box","text":"significant price volatility as a result of the market fraud and manipulation noted above.","page_number":419,"box":{"x":116,"y":878,"width":648,"height":12}},{"id":"d9ac6103-7c2c-4559-80bc-fea81fba7129","block_type":"box","text":"II-21","page_number":419,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"efee9a08-931d-491e-b3c7-56eddac0e75b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":419,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a972b781-fd11-4d70-b640-673d5656df4b","block_type":"box","text":"Types of Derivatives Transactions.","page_number":420,"box":{"x":118,"y":87,"width":261,"height":12}},{"id":"57dfdfb2-0520-4c91-a41c-25c139e6eb88","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and","page_number":420,"box":{"x":116,"y":110,"width":715,"height":12}},{"id":"0c2725ad-901a-462e-8f29-d5da5c9bea4d","block_type":"box","text":"restrictions, including the following:","page_number":420,"box":{"x":117,"y":126,"width":263,"height":12}},{"id":"7de2daeb-c81b-4a73-ba0e-4cff4bfbdc8d","block_type":"box","text":"Futures.","page_number":420,"box":{"x":116,"y":157,"width":66,"height":9}},{"id":"e26c08ce-e470-41de-83ae-7d55bd4dbb02","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are","page_number":420,"box":{"x":116,"y":180,"width":718,"height":12}},{"id":"423e64c2-cf73-41fc-9874-4f8ce7aee55b","block_type":"box","text":"standardized, exchange-traded contracts that require a purchaser to take delivery, and a seller to make","page_number":420,"box":{"x":116,"y":196,"width":772,"height":12}},{"id":"fac1aa5b-3a84-4fd4-806a-cd6f7c795f4e","block_type":"box","text":"delivery, of a specified amount of an asset at a specified future date and price. Upon purchasing or","page_number":420,"box":{"x":116,"y":211,"width":738,"height":12}},{"id":"9068ea23-f90c-4350-afa9-135fb1391b07","block_type":"box","text":"selling a futures contract, a Fund is required to deposit initial margin equal to a percentage of the","page_number":420,"box":{"x":116,"y":227,"width":723,"height":12}},{"id":"f0610721-4362-4f7e-8cd9-997c6bd74ee6","block_type":"box","text":"contract value. Futures contracts are marked to market daily for the duration of the contract, and the","page_number":420,"box":{"x":116,"y":242,"width":748,"height":12}},{"id":"293293e1-9fe7-4cff-9c56-6672e27f2a32","block_type":"box","text":"Fund will either post additional margin or be entitled to a payment, as applicable, based on the","page_number":420,"box":{"x":117,"y":258,"width":704,"height":12}},{"id":"b798ff8d-a468-4073-9567-6fe070916baa","block_type":"box","text":"mark-to-market movement of the contract.","page_number":420,"box":{"x":117,"y":273,"width":317,"height":10}},{"id":"58ed4da4-3867-4f67-9792-226342d80b83","block_type":"box","text":"A Fund may sell a futures contract prior to the completion","page_number":420,"box":{"x":116,"y":304,"width":431,"height":12}},{"id":"46c6ebe2-8cb8-43c4-91de-af6dc5bde8ba","block_type":"box","text":"of its term to limit its risk of loss from a","page_number":420,"box":{"x":548,"y":304,"width":290,"height":10}},{"id":"c7301338-2c84-46fe-bd74-ae24fd90d289","block_type":"box","text":"decline in the market value of portfolio holdings correlated with the futures contract. However, in the","page_number":420,"box":{"x":116,"y":320,"width":745,"height":12}},{"id":"d252f860-fe63-4d99-abd0-54e02b844181","block_type":"box","text":"event the market value of the portfolio holdings correlated with the futures contract increases rather","page_number":420,"box":{"x":116,"y":335,"width":742,"height":12}},{"id":"d2673a0c-d75f-49f3-a205-6a4782691029","block_type":"box","text":"than decreases, a Fund will realize a loss on the futures position and a lower return on the portfolio","page_number":420,"box":{"x":116,"y":351,"width":739,"height":12}},{"id":"363043cd-3f74-4050-b416-3aad14974dea","block_type":"box","text":"holdings than would have been realized without the purchase of the futures contract.","page_number":420,"box":{"x":117,"y":366,"width":631,"height":12}},{"id":"1c61da79-4313-4ead-ae05-ff59d094c394","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing","page_number":420,"box":{"x":116,"y":397,"width":697,"height":12}},{"id":"cb94efbe-f050-447c-b4ae-c5f9375e2cf7","block_type":"box","text":"securities or commodities directly. In the event that such securities or commodities decline in value or a","page_number":420,"box":{"x":116,"y":413,"width":772,"height":12}},{"id":"4029c6e7-1ca0-4a2c-b910-c56718554569","block_type":"box","text":"Fund determines not to complete an anticipatory hedge transaction relating to a futures contract,","page_number":420,"box":{"x":117,"y":428,"width":720,"height":12}},{"id":"ccf4d40f-5ce1-4055-ac17-fc7feb5cdc79","block_type":"box","text":"however, the Fund may realize a loss relating to the futures position.","page_number":420,"box":{"x":117,"y":444,"width":512,"height":12}},{"id":"2c2ad27b-c3f0-497c-b3c6-90f0af0a22a0","block_type":"box","text":"Futures contracts are also subject to position limits. In order to comply with position limits, a Fund may","page_number":420,"box":{"x":117,"y":475,"width":763,"height":12}},{"id":"cb5978ee-8e58-4980-a328-1ddae8f90438","block_type":"box","text":"be required to liquidate positions or may not be able to fully implement trading instructions. Any such","page_number":420,"box":{"x":117,"y":490,"width":750,"height":12}},{"id":"00565558-7fca-4b9a-9ae1-623bde68db67","block_type":"box","text":"liquidation or limited implementation could result in substantial costs to a Fund. See “— Regulation of","page_number":420,"box":{"x":117,"y":506,"width":754,"height":12}},{"id":"e591665a-b8cf-4481-96ce-57a34ebfab20","block_type":"box","text":"Derivatives — Dodd-Frank Regulations” above.","page_number":420,"box":{"x":117,"y":521,"width":356,"height":12}},{"id":"217668f9-9d18-4d75-868b-0df4f34ffd59","block_type":"box","text":"A Fund is also permitted to purchase or sell call and put options on futures contracts, including","page_number":420,"box":{"x":116,"y":552,"width":706,"height":12}},{"id":"afee775a-e44b-4e95-9977-2dcc279b3c11","block_type":"box","text":"financial futures and stock indices. Generally, these strategies would be used under the same market","page_number":420,"box":{"x":116,"y":568,"width":757,"height":12}},{"id":"7f5c26d5-c866-444d-a2be-909092f2dbe5","block_type":"box","text":"and market sector conditions (","page_number":420,"box":{"x":116,"y":583,"width":225,"height":12}},{"id":"0b9b004f-2b0e-4b2c-bb92-a31e90e17a62","block_type":"box","text":"i.e.","page_number":420,"box":{"x":342,"y":583,"width":20,"height":10}},{"id":"a722a12d-35e7-4f4e-942b-8d0cc59e8bf1","block_type":"box","text":", conditions relating to specific types of investments) in which the","page_number":420,"box":{"x":365,"y":583,"width":485,"height":12}},{"id":"7d6dab60-4429-4c17-8ef9-7232250413c2","block_type":"box","text":"Fund entered into futures transactions. A Fund may purchase put options or write call options on","page_number":420,"box":{"x":117,"y":599,"width":720,"height":12}},{"id":"4e00bc4d-6883-45f9-a48a-80064007b770","block_type":"box","text":"futures contracts and stock indices in lieu of selling the underlying futures contract in anticipation of a","page_number":420,"box":{"x":116,"y":614,"width":754,"height":12}},{"id":"8f3ac149-3572-48b8-9048-2b7b8598b7ae","block_type":"box","text":"decrease in the market value of its securities. Similarly, a Fund can purchase call options, or write put","page_number":420,"box":{"x":116,"y":630,"width":759,"height":12}},{"id":"fe94ac1d-6e34-4b06-a018-e64fe039ff2f","block_type":"box","text":"options on futures contracts and stock indices, as a substitute for the purchase of such futures","page_number":420,"box":{"x":116,"y":645,"width":705,"height":12}},{"id":"e1a381e7-83a1-4640-ac65-5c04704dd0df","block_type":"box","text":"contracts to hedge against the increased cost resulting from an increase in the market value of","page_number":420,"box":{"x":116,"y":661,"width":703,"height":12}},{"id":"62eaeadb-db62-46c1-9e0d-b71bb3646ee5","block_type":"box","text":"securities which the Fund intends to purchase.","page_number":420,"box":{"x":116,"y":676,"width":344,"height":12}},{"id":"e0160306-30b9-4813-baad-1e23c2418c10","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to","page_number":420,"box":{"x":116,"y":707,"width":743,"height":12}},{"id":"3b78903f-e055-4c5b-bbbf-23025172c9af","block_type":"box","text":"futures contracts. These instruments may take a variety of forms, such as debt securities with interest","page_number":420,"box":{"x":116,"y":723,"width":754,"height":12}},{"id":"19338af2-acdc-42b2-8cb2-07343603ef31","block_type":"box","text":"or principal payments determined by reference to the value of a security, an index of securities or a","page_number":420,"box":{"x":116,"y":738,"width":735,"height":12}},{"id":"6d0bfba0-df70-4bc0-8d59-1a730919cda7","block_type":"box","text":"commodity at a future point in time. The risks of such investments could reflect the risks of investing in","page_number":420,"box":{"x":116,"y":754,"width":758,"height":12}},{"id":"35e4989d-5647-4e4c-9d2a-82253542598c","block_type":"box","text":"futures and securities, including volatility and illiquidity.","page_number":420,"box":{"x":116,"y":769,"width":404,"height":12}},{"id":"35a0afec-19bb-4298-a7d1-d36827e53d6d","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage","page_number":420,"box":{"x":117,"y":800,"width":746,"height":12}},{"id":"bdbdfb2d-faee-4b90-ae70-73e8ea61cc1b","block_type":"box","text":"risk, illiquidity risk, market risk and counterparty risk with respect to a Fund’s futures broker or the","page_number":420,"box":{"x":117,"y":816,"width":721,"height":12}},{"id":"41b61c85-680b-48b2-8540-7f8d4b343c59","block_type":"box","text":"clearinghouse. See “— Risk Factors in Derivatives” above.","page_number":420,"box":{"x":116,"y":831,"width":440,"height":12}},{"id":"95a70c93-9ecd-46d8-be71-2f614301e516","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a","page_number":420,"box":{"x":117,"y":862,"width":771,"height":12}},{"id":"0a5f6cab-94e8-4d04-a7be-dae416eb0d9b","block_type":"box","text":"limit is set by a regulator, such as a government entity, on the total amount of specific greenhouse","page_number":420,"box":{"x":117,"y":878,"width":732,"height":12}},{"id":"75c3179f-40fe-4a98-85dc-0afb912bf669","block_type":"box","text":"II-22","page_number":420,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"faaab5ee-21e6-4a16-acfb-4146e6493f4e","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":420,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"02688df0-1c2e-4301-869d-e9aba3eb5e9d","block_type":"box","text":"gases, such as CO2, that can be emitted by regulated entities, such as manufacturers or energy","page_number":421,"box":{"x":116,"y":87,"width":720,"height":12}},{"id":"4fb60bf9-7404-464b-82b6-e9e57b06e4cd","block_type":"box","text":"producers. The regulator then may issue or sell individual “emission allowances” to regulated entities,","page_number":421,"box":{"x":117,"y":102,"width":756,"height":13}},{"id":"12544c73-f261-4657-b6d6-4617aef62a79","block_type":"box","text":"which can then be traded on the open market. Commodity futures contracts linked to the value of","page_number":421,"box":{"x":116,"y":118,"width":725,"height":12}},{"id":"c76facbf-8c70-4b1b-b276-4f2031035aea","block_type":"box","text":"emission allowances are known as “carbon futures.”","page_number":421,"box":{"x":116,"y":134,"width":392,"height":9}},{"id":"5a294219-6840-4bac-8b50-ff9ac8366fcc","block_type":"box","text":"The price for carbon futures contracts is based on a number of factors, including the supply of and the","page_number":421,"box":{"x":116,"y":166,"width":762,"height":12}},{"id":"71e09696-f198-4b59-b971-69d6575de5a0","block_type":"box","text":"demand for carbon futures contracts. Changes in law, market conditions and expectations, position","page_number":421,"box":{"x":116,"y":182,"width":740,"height":12}},{"id":"c651464a-b35b-4bdd-9135-23744a9a152d","block_type":"box","text":"limits, collateral requirements, and other factors each can impact the supply of and demand for carbon","page_number":421,"box":{"x":117,"y":197,"width":763,"height":12}},{"id":"c24cd668-7d91-4d99-ab61-07c0fb4bb5ba","block_type":"box","text":"futures contracts. The market for carbon futures contracts is still developing and may be subject to","page_number":421,"box":{"x":116,"y":213,"width":735,"height":12}},{"id":"58e1a099-a081-4467-80f1-0accddade5cf","block_type":"box","text":"periods of illiquidity. During such times it may be difficult or impossible to buy or sell a position at the","page_number":421,"box":{"x":117,"y":228,"width":747,"height":12}},{"id":"ddf87c74-da49-4429-828b-8db2befed5b4","block_type":"box","text":"desired price. Market disruptions or volatility can also make it difficult to find a counterparty willing to","page_number":421,"box":{"x":116,"y":244,"width":747,"height":12}},{"id":"77b99599-441b-4453-8ffa-cef030dc6347","block_type":"box","text":"transact at a reasonable price and sufficient size.","page_number":421,"box":{"x":116,"y":259,"width":369,"height":12}},{"id":"e641535e-2d87-4ae1-9831-8a8766fbb698","block_type":"box","text":"Swap Agreements.","page_number":421,"box":{"x":117,"y":292,"width":145,"height":12}},{"id":"8ac365dc-8877-401d-84fd-a7af3ca3425c","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap","page_number":421,"box":{"x":116,"y":316,"width":704,"height":12}},{"id":"0fb3f26b-ab26-4e2e-8c67-90c14757b559","block_type":"box","text":"agreements are OTC contracts entered into primarily by financial institutions and institutional investors","page_number":421,"box":{"x":116,"y":332,"width":764,"height":12}},{"id":"48ee7c19-2d15-45d2-b21a-ef3120eb4158","block_type":"box","text":"which may or may not be cleared by a central clearinghouse. In a standard “swap” transaction, two","page_number":421,"box":{"x":116,"y":347,"width":738,"height":12}},{"id":"d442adcf-b800-46e4-bb40-e0f5a834a87e","block_type":"box","text":"parties agree to exchange the returns earned or realized from one or more underlying assets or rates","page_number":421,"box":{"x":117,"y":363,"width":755,"height":12}},{"id":"070b0545-69c5-45f4-9216-56c469726146","block_type":"box","text":"of return, which may be adjusted for an interest factor. The gross returns to be exchanged or","page_number":421,"box":{"x":116,"y":378,"width":693,"height":12}},{"id":"4fbd7e5c-dfab-4181-8786-816b1658820b","block_type":"box","text":"“swapped” between the parties are generally calculated with respect to a “notional amount,”","page_number":421,"box":{"x":116,"y":394,"width":684,"height":12}},{"id":"a45ac302-ff2c-4f1a-aee9-eeb490c21749","block_type":"box","text":"e.g.","page_number":421,"box":{"x":801,"y":396,"width":26,"height":10}},{"id":"4461f38a-43f8-471b-8c64-5339b0f76663","block_type":"box","text":", the","page_number":421,"box":{"x":830,"y":394,"width":36,"height":11}},{"id":"95faca0b-a194-42d5-aaf6-c8a4c896cd7c","block_type":"box","text":"return or increase in value of a particular dollar amount invested at a particular interest rate, in a","page_number":421,"box":{"x":117,"y":409,"width":716,"height":12}},{"id":"7b01a244-45d1-4059-a138-e58db1a40b3f","block_type":"box","text":"particular foreign currency, or in a “basket” of securities representing a particular index. The notional","page_number":421,"box":{"x":117,"y":425,"width":747,"height":12}},{"id":"8166dba8-daab-452a-8d9c-738958d196cd","block_type":"box","text":"amount of the swap agreement is only used to calculate the obligations that the parties to a swap","page_number":421,"box":{"x":116,"y":440,"width":726,"height":12}},{"id":"a4b61760-50f4-4d43-a4ca-c15b88deb949","block_type":"box","text":"agreement have agreed to exchange. A Fund’s obligations (or rights) under a swap agreement will","page_number":421,"box":{"x":116,"y":456,"width":736,"height":12}},{"id":"c76840a4-7686-4d5c-8e0a-a89282b1dc6c","block_type":"box","text":"generally be equal only to the net amount to be paid or received under the agreement based on the","page_number":421,"box":{"x":116,"y":471,"width":743,"height":12}},{"id":"2b181c4d-68a3-48d4-88d6-a04008cf73a3","block_type":"box","text":"relative values of the positions held by each party to the agreement. Swaps that are not cleared involve","page_number":421,"box":{"x":117,"y":487,"width":770,"height":12}},{"id":"73196a1f-5f52-4a5d-bb92-5ed5a6bbbaf5","block_type":"box","text":"substantial counterparty risk. A Fund will typically attempt to mitigate this counterparty risk by entering","page_number":421,"box":{"x":116,"y":502,"width":761,"height":12}},{"id":"3f9c045f-1f81-4efb-8793-6d239e277fc4","block_type":"box","text":"into swap agreements only with creditworthy entities that have substantial capital or that have provided","page_number":421,"box":{"x":117,"y":518,"width":767,"height":12}},{"id":"f82b4eeb-5974-4a21-8efd-a9c2b506da72","block_type":"box","text":"the Fund with a third-party guaranty or other credit support. A Fund’s ability to use swap agreements","page_number":421,"box":{"x":116,"y":533,"width":751,"height":12}},{"id":"f637965b-d464-4021-afcf-ff7bfd109858","block_type":"box","text":"may be restricted by the tax rules applicable to registered investment companies.","page_number":421,"box":{"x":117,"y":549,"width":607,"height":12}},{"id":"0394590c-6da8-423c-a7b9-b5f59aee8ae1","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":421,"box":{"x":117,"y":581,"width":348,"height":12}},{"id":"ef6d5972-96e1-459e-8940-661da097322c","block_type":"box","text":"Certain Funds may enter into credit default swaps and","page_number":421,"box":{"x":466,"y":581,"width":407,"height":12}},{"id":"a7e6e607-d6df-44fd-a94c-a9f17a71ad53","block_type":"box","text":"similar instruments. Credit default swaps are standardized agreements in which the protection “buyer”","page_number":421,"box":{"x":116,"y":597,"width":760,"height":12}},{"id":"f91f120d-8f4a-4149-999d-0de9b7435313","block_type":"box","text":"pays the protection “seller” an up-front payment, or a periodic stream of payments, over the term of the","page_number":421,"box":{"x":117,"y":612,"width":768,"height":12}},{"id":"5e0b368a-a2c0-498b-9950-b98882675d4a","block_type":"box","text":"contract, provided generally that no credit event on a reference obligation has occurred. If a credit","page_number":421,"box":{"x":116,"y":628,"width":730,"height":12}},{"id":"333e106f-9ab3-4c78-9968-ffad8370d0c1","block_type":"box","text":"event occurs, the seller generally must pay the buyer the difference between the notional amount of","page_number":421,"box":{"x":116,"y":643,"width":745,"height":12}},{"id":"1db7c9a8-43af-458a-a265-b55bd6589349","block_type":"box","text":"the contract and the value of a portfolio of securities issued by the reference entity. A Fund may be","page_number":421,"box":{"x":116,"y":659,"width":738,"height":12}},{"id":"cc8ea059-fd58-4ac1-837a-84d633a78f1d","block_type":"box","text":"either the buyer or seller in the transaction. The Funds may enter into credit default swaps that","page_number":421,"box":{"x":116,"y":674,"width":701,"height":12}},{"id":"8372d419-23e8-4e65-a3c8-8a7085e1f0dc","block_type":"box","text":"reference the obligations of a single entity (“single-name CDS”) or the obligations of entities that make","page_number":421,"box":{"x":117,"y":690,"width":756,"height":12}},{"id":"faaecee7-afa1-4651-9c20-9e5ad0d616c9","block_type":"box","text":"up an index (“index CDS”). References to “credit default swaps” shall collectively refer to single-name","page_number":421,"box":{"x":117,"y":705,"width":751,"height":12}},{"id":"ceeb49c2-06d1-4d74-8763-327c9a823828","block_type":"box","text":"CDS and index CDS.","page_number":421,"box":{"x":117,"y":721,"width":155,"height":9}},{"id":"dfe92c91-380c-40ed-bd9f-cee113fb19e3","block_type":"box","text":"Credit default swaps have as reference obligations one or more securities or loans that are not","page_number":421,"box":{"x":117,"y":753,"width":701,"height":13}},{"id":"89b0ea79-239f-4ff4-983f-0c07d89cff6f","block_type":"box","text":"currently held by a Fund. In circumstances in which a Fund does not own the securities or loans that","page_number":421,"box":{"x":116,"y":769,"width":744,"height":12}},{"id":"1ea1ebe2-97f8-40da-897b-2cdd85a8adf1","block_type":"box","text":"are deliverable under a credit default swap, the Fund is exposed to the risk that deliverable securities","page_number":421,"box":{"x":116,"y":784,"width":749,"height":12}},{"id":"7f75f5a3-793d-4005-a452-e21acecdb6bb","block_type":"box","text":"will not be available in the market, or will be available only at unfavorable prices, as would be the case","page_number":421,"box":{"x":116,"y":800,"width":758,"height":12}},{"id":"b4da15bb-91ee-45c5-bd9a-ce81d389dfbe","block_type":"box","text":"in a so-called “short squeeze.” In certain instances of issuer defaults or restructurings, it has been","page_number":421,"box":{"x":117,"y":815,"width":723,"height":13}},{"id":"5577f127-d003-4081-87d2-12c0a564b8b8","block_type":"box","text":"unclear under the standard industry documentation for credit default swaps whether or not a “credit","page_number":421,"box":{"x":117,"y":831,"width":739,"height":12}},{"id":"f2a300e9-b3d3-4382-9ec4-74348e2b0d69","block_type":"box","text":"event” triggering the seller’s payment obligation had occurred. Certain initiatives adopted by derivatives","page_number":421,"box":{"x":116,"y":846,"width":771,"height":13}},{"id":"7a0eaa89-b00b-432f-9c25-3f222165aa9a","block_type":"box","text":"market participants, including the International Swaps and Derivatives Association (“ISDA”), are","page_number":421,"box":{"x":117,"y":862,"width":713,"height":12}},{"id":"19796b27-1256-4353-96b3-1c25bb5bcd23","block_type":"box","text":"designed to implement uniform settlement terms into standard credit default swap documentation, as","page_number":421,"box":{"x":116,"y":877,"width":753,"height":13}},{"id":"4d4a7412-9b4b-4c82-98d7-d7af8ad419b0","block_type":"box","text":"II-23","page_number":421,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"79e8ac25-24fe-4959-b655-f4ec72fd0b93","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":421,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"40a3877c-33b6-4c61-a7d4-d471048ad729","block_type":"box","text":"well as refine the practices for the transparent conduct of the credit default swap market generally.","page_number":422,"box":{"x":116,"y":87,"width":735,"height":12}},{"id":"3e82225e-d41d-4db7-b56a-c04f1fc096af","block_type":"box","text":"Among these initiatives are the ISDA Credit Derivatives Determination Committee and the","page_number":422,"box":{"x":116,"y":102,"width":672,"height":13}},{"id":"18a11fc8-e617-47c5-a4ed-cee9d4dc314d","block_type":"box","text":"implementation of market-wide cash settlement protocols applicable to all market-standard credit","page_number":422,"box":{"x":117,"y":118,"width":722,"height":12}},{"id":"a9606483-02c2-439d-9b76-2b5e035fc1d2","block_type":"box","text":"default swaps. These initiatives are intended to reduce both the uncertainty as to the occurrence of","page_number":422,"box":{"x":116,"y":134,"width":739,"height":12}},{"id":"7d6b935b-4feb-48e9-ae29-b6019af5930b","block_type":"box","text":"credit events and the risk of a “short squeeze” by providing that the ISDA Credit Derivatives","page_number":422,"box":{"x":116,"y":149,"width":684,"height":12}},{"id":"3ab7774e-306d-4129-b308-77e3658e438b","block_type":"box","text":"Determinations Committee will make determinations as to whether a credit event has occurred,","page_number":422,"box":{"x":117,"y":165,"width":710,"height":11}},{"id":"85062062-faeb-4007-bc11-2f03cc92ae15","block_type":"box","text":"establish an auction to determine a settlement price and identify the deliverable securities for purposes","page_number":422,"box":{"x":116,"y":180,"width":768,"height":12}},{"id":"068cce2c-d4d1-4189-9f88-cbdb38c3c551","block_type":"box","text":"of the auction, although the ISDA Credit Derivatives Determinations Committee may in certain limited","page_number":422,"box":{"x":116,"y":196,"width":756,"height":12}},{"id":"f79910f1-9acf-4acb-a565-92c02254a9f5","block_type":"box","text":"circumstances refrain from doing so. In the event the ISDA Credit Derivatives Determinations","page_number":422,"box":{"x":116,"y":211,"width":696,"height":12}},{"id":"4b26e91b-7be6-426a-976b-e0be7aa94fa7","block_type":"box","text":"Committee cannot reach a timely resolution with respect to a “credit event” or otherwise does not","page_number":422,"box":{"x":117,"y":227,"width":723,"height":12}},{"id":"4259f29c-7b52-4857-9e31-a9f15630ee58","block_type":"box","text":"establish a cash settlement auction, a Fund may not be able to realize the full value of the credit","page_number":422,"box":{"x":116,"y":242,"width":717,"height":12}},{"id":"754490c2-8bc1-4b25-b49a-4355390c0d8b","block_type":"box","text":"default swap upon a default by the reference entity. Furthermore, a Fund may enter into certain credit","page_number":422,"box":{"x":116,"y":258,"width":758,"height":12}},{"id":"144378cb-d5e8-4a21-9742-4354e21aa1f4","block_type":"box","text":"default swaps or similar instruments that may not be covered by these initiatives.","page_number":422,"box":{"x":116,"y":273,"width":604,"height":12}},{"id":"182e313a-bde5-4be1-99c1-4ae8a5f5d3df","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","page_number":422,"box":{"x":117,"y":304,"width":729,"height":12}},{"id":"7460c29e-0d91-4459-a1f0-f0fa6cb99192","block_type":"box","text":"recover nothing should no credit event occur. If a Fund is a seller and a credit event occurs, the value","page_number":422,"box":{"x":117,"y":320,"width":757,"height":12}},{"id":"e20d229b-8f37-4653-9e9c-eb5a20f51caa","block_type":"box","text":"of any deliverable obligation received by the Fund or the amount of cash settlement received by the","page_number":422,"box":{"x":116,"y":335,"width":744,"height":12}},{"id":"43caeaaf-5b00-4628-adc1-328a150a8394","block_type":"box","text":"Fund pursuant to the relevant cash settlement auction, together with the up-front or periodic payments","page_number":422,"box":{"x":117,"y":351,"width":763,"height":12}},{"id":"76be9f5d-8679-4a71-900d-7b321562016a","block_type":"box","text":"previously received, may be less than the amount it pays to the buyer, resulting in a loss of value to the","page_number":422,"box":{"x":117,"y":366,"width":770,"height":12}},{"id":"5029b89b-6bab-4067-9a2c-95198b8a63aa","block_type":"box","text":"Fund. A Fund that sells credit default swaps incurs leveraged exposure to the credit of one or more","page_number":422,"box":{"x":117,"y":382,"width":739,"height":12}},{"id":"1b5bf5f1-dc43-4335-b409-887a7c85b60e","block_type":"box","text":"reference entities and is subject to many of the same risks it would incur if it were holding debt","page_number":422,"box":{"x":117,"y":397,"width":703,"height":12}},{"id":"badfcaa7-a0d8-4909-aa1d-5518bd947920","block_type":"box","text":"securities issued by the relevant reference entity. However, a Fund will not have any legal recourse","page_number":422,"box":{"x":116,"y":413,"width":742,"height":12}},{"id":"5ca2f6ea-a9d6-4adc-adbb-3ea82e5fc36c","block_type":"box","text":"against any reference entity and will not benefit from any collateral securing the reference entity’s debt","page_number":422,"box":{"x":116,"y":428,"width":764,"height":12}},{"id":"55103d1f-37e5-4c4d-b878-c60cc0241922","block_type":"box","text":"obligations. In the event the ISDA Credit Derivatives Determinations Committee does not establish a","page_number":422,"box":{"x":116,"y":444,"width":750,"height":12}},{"id":"1ffa503f-a85d-454c-a5e3-ce6b1f4da330","block_type":"box","text":"cash settlement auction and identify the relevant deliverable securities or loans, the credit default swap","page_number":422,"box":{"x":116,"y":459,"width":769,"height":12}},{"id":"dff36be9-8ad2-412f-a1bd-cc34f8ade275","block_type":"box","text":"buyer will have broad discretion to select which of the reference entity’s debt obligations to deliver to","page_number":422,"box":{"x":117,"y":475,"width":748,"height":12}},{"id":"75c5e919-af2e-4de7-9041-8ebc9ca52331","block_type":"box","text":"the Fund following a credit event and will likely choose the obligations with the lowest market value in","page_number":422,"box":{"x":116,"y":490,"width":755,"height":12}},{"id":"10bbf465-d841-4441-910c-04cc968e61bd","block_type":"box","text":"order to maximize the payment obligations of the Fund. In addition, credit default swaps generally trade","page_number":422,"box":{"x":116,"y":506,"width":772,"height":12}},{"id":"ddf46c06-c0f7-4941-b4b5-94c163db7a71","block_type":"box","text":"on the basis of theoretical pricing and valuation models, which may not accurately value such swap","page_number":422,"box":{"x":116,"y":521,"width":742,"height":12}},{"id":"3adbe56c-b1da-4c26-95a5-38c9c91c3208","block_type":"box","text":"positions when established or when subsequently traded or unwound under actual market conditions.","page_number":422,"box":{"x":117,"y":537,"width":756,"height":12}},{"id":"2e2efc51-e924-40b1-a08b-4850ae1f7ccc","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for","page_number":422,"box":{"x":117,"y":568,"width":719,"height":12}},{"id":"83b1d71a-f3c9-488e-98f4-68457b7fe6cb","block_type":"box","text":"clearing to regulated clearinghouses. See “— Derivatives — Regulation of Derivatives — Dodd-Frank","page_number":422,"box":{"x":116,"y":583,"width":757,"height":12}},{"id":"b4ae172d-af11-4bda-bff0-b5b5302fdaae","block_type":"box","text":"Regulations” above. Other single-name CDS and index CDS are permitted, although not required, to","page_number":422,"box":{"x":117,"y":599,"width":750,"height":12}},{"id":"4533217b-d9e3-4491-899b-961b1ac20c3f","block_type":"box","text":"be cleared through regulated clearinghouses. The Funds clear all credit default swaps that are subject","page_number":422,"box":{"x":117,"y":614,"width":762,"height":12}},{"id":"d7ca68f6-e861-408d-a4e3-ed34aad38ff2","block_type":"box","text":"to mandatory clearing and may voluntarily clear some, but not all, of the other credit default swaps not","page_number":422,"box":{"x":116,"y":630,"width":762,"height":12}},{"id":"14300833-9464-43e4-a976-0247c47fc7b2","block_type":"box","text":"subject to mandatory clearing. The Funds face counterparty risk with respect to the clearinghouse","page_number":422,"box":{"x":116,"y":645,"width":731,"height":12}},{"id":"d4742c91-6119-43ec-88b5-f892bde87cec","block_type":"box","text":"when entering into cleared single-name CDS and cleared index CDS. The Funds face significant","page_number":422,"box":{"x":116,"y":661,"width":717,"height":12}},{"id":"2e87fde3-fc54-4590-9440-83639fd715f4","block_type":"box","text":"counterparty risk with respect to their counterparties to non-cleared credit default swaps and similar","page_number":422,"box":{"x":116,"y":676,"width":738,"height":12}},{"id":"9670daa1-c479-4f49-a72b-9c3f44dc3f3e","block_type":"box","text":"instruments. A Fund typically will enter into non-cleared credit default swaps and similar instruments","page_number":422,"box":{"x":117,"y":692,"width":741,"height":12}},{"id":"ac6fa07a-a0ae-4a34-8830-aa4128d20c5f","block_type":"box","text":"with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":422,"box":{"x":116,"y":707,"width":765,"height":12}},{"id":"84e9fcb1-aa2c-4abc-9c9f-bc3b6183a1fe","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":422,"box":{"x":116,"y":723,"width":367,"height":12}},{"id":"85b7b47a-515c-41cd-93e5-ba6b3b84abce","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either","page_number":422,"box":{"x":117,"y":754,"width":750,"height":12}},{"id":"3abfe0e5-8883-47b2-a1fe-5b6d088884be","block_type":"box","text":"as protection buyer or protection seller. While these contracts are similar in their operation to the","page_number":422,"box":{"x":116,"y":769,"width":715,"height":12}},{"id":"ce7b2872-f4e5-4f79-9a47-de916bc868ab","block_type":"box","text":"market-standard credit default swaps described above, they are less standardized and instead have","page_number":422,"box":{"x":117,"y":785,"width":741,"height":12}},{"id":"f6fdb260-3ecf-420e-a414-f82d4403d166","block_type":"box","text":"bespoke or tailored features. For example, as compared to market-standard credit defaults, the range","page_number":422,"box":{"x":117,"y":800,"width":753,"height":12}},{"id":"0297a403-3ad1-4d6c-a86e-511ccb6332f2","block_type":"box","text":"of “credit events” triggering settlement of such bespoke contracts may be narrower or broader, any","page_number":422,"box":{"x":116,"y":816,"width":733,"height":12}},{"id":"5add84cd-036f-43f0-b615-615bdb331bca","block_type":"box","text":"such triggered contracts are settled by physical delivery of the underlying security or loan to or by the","page_number":422,"box":{"x":116,"y":831,"width":755,"height":12}},{"id":"06b0960b-62d3-439e-b434-e53afc237293","block_type":"box","text":"Fund rather than by way of cash settlement, and there may be a wider range of securities as the","page_number":422,"box":{"x":117,"y":847,"width":719,"height":12}},{"id":"bb3df5fb-79d8-4fb2-8985-2e441dcd4f58","block_type":"box","text":"reference obligations and/or deliverable obligations.","page_number":422,"box":{"x":117,"y":862,"width":388,"height":12}},{"id":"233dd796-65b8-49b3-b187-47e710fe43b6","block_type":"box","text":"II-24","page_number":422,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"094522ef-f1f0-4fc4-aafc-218bfa8edb12","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":422,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"562e7f3c-b35e-4b24-b65c-1576d2688e34","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund","page_number":423,"box":{"x":117,"y":87,"width":752,"height":12}},{"id":"a5424388-9591-43c2-b505-dfea6e96dff5","block_type":"box","text":"had invested in the reference obligation directly and are subject to significant credit risk, correlation","page_number":423,"box":{"x":117,"y":102,"width":738,"height":13}},{"id":"29ff9d9b-94bc-4a48-876d-4c3da80ccfd9","block_type":"box","text":"risk, leverage risk, illiquidity risk and market risk. See “— Risk Factors in Derivatives” above.","page_number":423,"box":{"x":117,"y":118,"width":689,"height":12}},{"id":"4996adf0-e5c1-40fc-a959-81daca953016","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":423,"box":{"x":117,"y":151,"width":292,"height":12}},{"id":"f8ab43ee-32e0-4872-ac3e-99cb787ee30f","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of","page_number":423,"box":{"x":410,"y":151,"width":450,"height":12}},{"id":"8de37cbf-ddbe-4c1d-b0d1-e716feeb8a62","block_type":"box","text":"interest rate swaps and interest rate caps and floors. As described in further detail below, a Fund may","page_number":423,"box":{"x":117,"y":167,"width":760,"height":12}},{"id":"40da2596-5c14-44c1-8598-05d16a069f5b","block_type":"box","text":"enter into these transactions primarily to preserve a return or spread on a particular investment or","page_number":423,"box":{"x":116,"y":182,"width":729,"height":12}},{"id":"8e0d236e-bf6b-42f8-a661-1be0e7a4fb5a","block_type":"box","text":"portion of its holdings, as a duration management technique, to protect against an increase in the price","page_number":423,"box":{"x":117,"y":198,"width":767,"height":12}},{"id":"2dcb4881-6789-4902-9a8b-341dc938a24a","block_type":"box","text":"of securities a Fund anticipates purchasing at a later date, or for speculation to increase returns.","page_number":423,"box":{"x":116,"y":213,"width":718,"height":12}},{"id":"2de3694c-3770-4c25-905d-33431bd2d9fb","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted","page_number":423,"box":{"x":117,"y":247,"width":756,"height":12}},{"id":"d434b793-570b-41ba-bf50-cef4a97ffac5","block_type":"box","text":"for clearing to regulated clearinghouses. See “— Regulation of Derivatives — Dodd-Frank Regulations”","page_number":423,"box":{"x":116,"y":262,"width":771,"height":12}},{"id":"879439c8-91cd-478a-a5f9-c348e2a9410a","block_type":"box","text":"above. Other interest rate swaps are permitted, although not required, to be cleared. Most of the","page_number":423,"box":{"x":116,"y":277,"width":720,"height":13}},{"id":"38160e1e-c20b-4778-a272-06e1a830e291","block_type":"box","text":"interest rate swaps entered into by the Funds are cleared. The Funds face counterparty risk with","page_number":423,"box":{"x":117,"y":293,"width":719,"height":12}},{"id":"77cf3f64-7b21-4ee0-9c2f-31a7aaa77c84","block_type":"box","text":"respect to the clearinghouse when entering into cleared interest rate swaps.","page_number":423,"box":{"x":117,"y":309,"width":568,"height":12}},{"id":"ecf95c16-4346-4b4a-a9b5-22155b385a1f","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest","page_number":423,"box":{"x":116,"y":342,"width":764,"height":12}},{"id":"73179d83-0da6-41b1-b4bb-877760126b24","block_type":"box","text":"rate swaps and interest rate caps and floors. The typical counterparties for a Fund’s non-cleared","page_number":423,"box":{"x":117,"y":357,"width":719,"height":12}},{"id":"50ee2840-88a1-4aa3-915e-76952b1e3d0d","block_type":"box","text":"interest rate derivatives transactions are swap dealers and other creditworthy entities that have","page_number":423,"box":{"x":117,"y":373,"width":709,"height":12}},{"id":"42205154-b242-43a1-a54a-41ecb96f4726","block_type":"box","text":"substantial capital or that have provided the Fund with a third-party guaranty or other credit support. If","page_number":423,"box":{"x":116,"y":388,"width":760,"height":12}},{"id":"0516a8ad-04f4-4a50-9ebc-987ef599ab7d","block_type":"box","text":"the Fund’s counterparty defaults on such a transaction, a Fund will have contractual remedies with","page_number":423,"box":{"x":116,"y":404,"width":736,"height":12}},{"id":"6c6b7f2d-15a2-46f6-9c17-7d7d16f2e725","block_type":"box","text":"respect to the transaction, but there can be no guarantee that the Fund will be successful in enforcing","page_number":423,"box":{"x":117,"y":419,"width":758,"height":12}},{"id":"3fd0f704-13e4-4a4d-8cfb-6f5f882d6200","block_type":"box","text":"such remedies. The market for interest rate swaps is relatively liquid in comparison with other similar","page_number":423,"box":{"x":116,"y":435,"width":751,"height":12}},{"id":"443021d1-8825-4ffe-9e4c-1c1371e0f10c","block_type":"box","text":"instruments traded in the interbank market. A Fund may be limited in its ability to enter into certain","page_number":423,"box":{"x":117,"y":450,"width":732,"height":12}},{"id":"af7d7246-a70a-4236-90d1-3f96262cd5e9","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":423,"box":{"x":117,"y":466,"width":503,"height":12}},{"id":"4b9199fc-ecf2-49bf-927a-ad8f4faacbab","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a","page_number":423,"box":{"x":117,"y":499,"width":762,"height":12}},{"id":"477c8ce3-d031-4c3a-9831-c6629ec2e9d5","block_type":"box","text":"fixed or variable interest rate, index or asset in return for periodic payments from its counterparty based","page_number":423,"box":{"x":116,"y":514,"width":772,"height":12}},{"id":"0290e632-218b-436d-a025-40c3171ede02","block_type":"box","text":"on a different fixed or variable interest rate, index or asset.","page_number":423,"box":{"x":116,"y":530,"width":439,"height":11}},{"id":"454f224a-4336-481f-9927-c4883134b5ef","block_type":"box","text":"The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls","page_number":423,"box":{"x":116,"y":563,"width":746,"height":12}},{"id":"d5374d36-45b7-43f1-9a64-137256710f94","block_type":"box","text":"below a predetermined interest rate, to receive payments of interest on a notional principal amount","page_number":423,"box":{"x":117,"y":579,"width":736,"height":12}},{"id":"5d004da0-4fff-4f14-ba6c-729d81e97623","block_type":"box","text":"from the party selling such interest rate floor.","page_number":423,"box":{"x":116,"y":594,"width":337,"height":12}},{"id":"420f262d-6528-49c8-9038-91bcb62b25b4","block_type":"box","text":"The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index rises","page_number":423,"box":{"x":116,"y":627,"width":746,"height":12}},{"id":"28fe1c53-9ea3-452c-b9fa-5202a15cf3d8","block_type":"box","text":"above a predetermined interest rate, to receive payments of interest on a notional principal amount","page_number":423,"box":{"x":116,"y":643,"width":739,"height":12}},{"id":"9e157d38-fd07-42ed-b15c-e334b97fb63d","block_type":"box","text":"from the party selling such interest rate cap.","page_number":423,"box":{"x":116,"y":658,"width":331,"height":12}},{"id":"db353fd2-984f-47b6-a1b6-15b078a76bd4","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":423,"box":{"x":116,"y":692,"width":759,"height":12}},{"id":"41a895bf-2d44-401f-8c9a-66490a533dcc","block_type":"box","text":"commitments to pay or receive interest,","page_number":423,"box":{"x":116,"y":707,"width":292,"height":12}},{"id":"ad1250c1-de27-4fbc-bd44-7a4adfe2a9c8","block_type":"box","text":"e.g.","page_number":423,"box":{"x":415,"y":710,"width":26,"height":9}},{"id":"04c43a03-e531-47ca-9cf6-54d20c8dec7c","block_type":"box","text":", an exchange of fixed rate payments for floating rate","page_number":423,"box":{"x":444,"y":707,"width":391,"height":12}},{"id":"b1d5d31f-622c-48f8-a453-05f399e90be6","block_type":"box","text":"payments. For example, if a Fund holds a mortgage-backed security with an interest rate that is reset","page_number":423,"box":{"x":117,"y":723,"width":750,"height":12}},{"id":"80667ba6-ff3e-4058-9b19-7d253e159af3","block_type":"box","text":"only once each year, it may swap the right to receive interest at this fixed rate for the right to receive","page_number":423,"box":{"x":116,"y":738,"width":743,"height":12}},{"id":"93cf2b09-2a66-40a7-95d3-5a8950ab726c","block_type":"box","text":"interest at a rate that is reset every week. This would enable a Fund to offset a decline in the value of","page_number":423,"box":{"x":117,"y":754,"width":751,"height":12}},{"id":"efd4a1ea-c9ae-4776-b1ec-55208b928fd8","block_type":"box","text":"the mortgage-backed security due to rising interest rates but would also limit its ability to benefit from","page_number":423,"box":{"x":116,"y":769,"width":747,"height":12}},{"id":"af1c1348-9b0f-4642-b03a-9a1d917c8b73","block_type":"box","text":"falling interest rates. Conversely, if a Fund holds a mortgage-backed security with an interest rate that","page_number":423,"box":{"x":116,"y":785,"width":756,"height":12}},{"id":"4ad02e12-5329-478c-9524-7ddf52a2243c","block_type":"box","text":"is reset every week and it would like to lock in what","page_number":423,"box":{"x":117,"y":800,"width":378,"height":12}},{"id":"e7373542-e67e-4eca-8287-360498b43ddc","block_type":"box","text":"it believes to be a high interest rate for one year, it","page_number":423,"box":{"x":501,"y":800,"width":373,"height":12}},{"id":"9b031201-be31-464f-ada4-82fd2dcbcca4","block_type":"box","text":"may swap the right to receive interest at this variable weekly rate for the right to receive interest at a","page_number":423,"box":{"x":117,"y":816,"width":740,"height":12}},{"id":"c2ba1c24-2ae1-4250-add4-db1773673f28","block_type":"box","text":"rate that is fixed for one year. Such a swap would protect the Fund from a reduction in yield due to","page_number":423,"box":{"x":117,"y":831,"width":733,"height":12}},{"id":"c67b456f-6ce5-4349-a3b1-8c15dce4c09b","block_type":"box","text":"falling interest rates and may permit the Fund to enhance its income through the positive differential","page_number":423,"box":{"x":116,"y":847,"width":745,"height":12}},{"id":"edaa7da4-3af8-4d5e-823e-103b16a942d7","block_type":"box","text":"between one week and one year interest rates, but would preclude it from taking full advantage of","page_number":423,"box":{"x":117,"y":862,"width":729,"height":12}},{"id":"fae38a0c-1bc8-4eea-96fb-151326fd36cf","block_type":"box","text":"rising interest rates.","page_number":423,"box":{"x":117,"y":878,"width":150,"height":12}},{"id":"d511a575-ff3c-43f9-a81e-7c1c820ce473","block_type":"box","text":"II-25","page_number":423,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"4c5a7dab-c5cc-40a0-941d-122e74054394","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":423,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4a3e50cb-7f57-4795-be54-5995065c9393","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary","page_number":424,"box":{"x":117,"y":87,"width":746,"height":12}},{"id":"15439784-e597-4d10-888a-e929583ae431","block_type":"box","text":"income or, in certain circumstances, as long term capital gains to shareholders.","page_number":424,"box":{"x":117,"y":103,"width":593,"height":12}},{"id":"704c2483-ad0b-4360-a93e-825a340d28de","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk,","page_number":424,"box":{"x":117,"y":134,"width":751,"height":13}},{"id":"2b90f284-2d92-43c1-a563-d0f4c8d5b817","block_type":"box","text":"illiquidity risk and market risk. See “— Risk Factors in Derivatives” above.","page_number":424,"box":{"x":117,"y":150,"width":549,"height":12}},{"id":"30ddc086-05f1-46b5-a7db-c0f6ee66e322","block_type":"box","text":"Total Return Swaps.","page_number":424,"box":{"x":118,"y":182,"width":155,"height":12}},{"id":"ba112f47-5e50-4f2a-93e0-8ba77977b68d","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic","page_number":424,"box":{"x":273,"y":182,"width":570,"height":12}},{"id":"a35b4045-88f1-4983-a16c-002eed3c0856","block_type":"box","text":"payments to the other party based on the return of the assets underlying the contract in exchange for","page_number":424,"box":{"x":117,"y":197,"width":754,"height":13}},{"id":"734e3fe3-d84d-4476-8874-6d92d931ef18","block_type":"box","text":"periodic payments based on a fixed or variable interest rate or the total return from different underlying","page_number":424,"box":{"x":117,"y":213,"width":765,"height":12}},{"id":"82b73de9-9d53-4c98-854a-4ca3221f605c","block_type":"box","text":"assets. The return of the assets underlying the contract includes both the income generated by the","page_number":424,"box":{"x":116,"y":228,"width":737,"height":13}},{"id":"759c1eb6-e573-4c25-b827-f78f3799da1a","block_type":"box","text":"asset and the change in market value of the asset. The asset underlying the contract may include a","page_number":424,"box":{"x":116,"y":244,"width":743,"height":12}},{"id":"0f2c9dd9-bcb7-4210-957c-16e28512a37d","block_type":"box","text":"specified security, basket of securities or securities indices. Total return swaps on a specified security,","page_number":424,"box":{"x":116,"y":259,"width":763,"height":13}},{"id":"8ae51e3c-715a-4990-8183-bbaa258c5e01","block_type":"box","text":"basket of securities or securities indices may sometimes be referred to as “contracts for difference.”","page_number":424,"box":{"x":117,"y":275,"width":743,"height":12}},{"id":"78d23060-a03d-43ca-8817-e021271b2e9e","block_type":"box","text":"Total return swaps may be used to obtain exposure to a security or market without owning or taking","page_number":424,"box":{"x":116,"y":307,"width":744,"height":12}},{"id":"2a1809cc-f455-4f9b-901a-329a0d6aa832","block_type":"box","text":"physical custody of such security or investing directly in such market. Upon entering into a total return","page_number":424,"box":{"x":117,"y":322,"width":758,"height":13}},{"id":"ec1ce10c-3ad4-4db1-9e16-6885477809bb","block_type":"box","text":"swap, a Fund is required to deposit initial margin but the parties do not exchange the notional amount.","page_number":424,"box":{"x":116,"y":338,"width":763,"height":12}},{"id":"0461c986-103e-45d2-9dc3-79fb1c9df8be","block_type":"box","text":"As a result, total return swaps may effectively add leverage to the Fund’s portfolio because the Fund","page_number":424,"box":{"x":116,"y":353,"width":750,"height":13}},{"id":"853582ca-5aa5-4ab2-9a9a-459aa7405e5f","block_type":"box","text":"would be subject to investment exposure on the notional amount of the swap.","page_number":424,"box":{"x":116,"y":369,"width":580,"height":12}},{"id":"b772d68a-7971-4908-9f21-5bd1e3b4e295","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk","page_number":424,"box":{"x":116,"y":401,"width":743,"height":12}},{"id":"e403d57d-0929-4c4e-a8ef-c0316db06458","block_type":"box","text":"and counterparty risk. See “— Risk Factors in Derivatives” above.","page_number":424,"box":{"x":116,"y":416,"width":493,"height":13}},{"id":"740b99bb-0dc7-4c3d-aa14-dfd52599149d","block_type":"box","text":"Options.","page_number":424,"box":{"x":117,"y":448,"width":66,"height":12}},{"id":"e619a59f-92f7-43fe-a678-2e00fa58f137","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":424,"box":{"x":117,"y":472,"width":337,"height":12}},{"id":"e86f7ac9-606b-4e78-ac6d-194c0ea33f5c","block_type":"box","text":"A Fund may engage in transactions in options on","page_number":424,"box":{"x":454,"y":472,"width":370,"height":12}},{"id":"e460ff92-0017-49db-a9bb-454d29a2cb4d","block_type":"box","text":"individual securities, baskets of securities or securities indices, or particular measurements of value or","page_number":424,"box":{"x":117,"y":488,"width":761,"height":12}},{"id":"cbb44791-22bd-4fd5-bbd2-382471c9b95d","block_type":"box","text":"rates, such as an index of the price of treasury securities or an index representative of short-term","page_number":424,"box":{"x":117,"y":503,"width":724,"height":12}},{"id":"839dbf24-abed-43c1-b464-4074e6780ef2","block_type":"box","text":"interest rates. Such investments may be made on exchanges and in the OTC markets. In general,","page_number":424,"box":{"x":117,"y":519,"width":732,"height":12}},{"id":"855a92d2-4678-4017-b519-bb9d48acf856","block_type":"box","text":"exchange-traded options have standardized exercise prices and expiration dates and require the","page_number":424,"box":{"x":116,"y":534,"width":723,"height":12}},{"id":"9d1938b4-d16a-4e53-8ecc-90ebdd07fdf2","block_type":"box","text":"parties to post margin against their obligations, and the performance of the parties’ obligations in","page_number":424,"box":{"x":117,"y":550,"width":720,"height":12}},{"id":"a412c111-4aa2-4e8f-b9fc-7a57f4a4fc61","block_type":"box","text":"connection with such options is guaranteed by the exchange or a related clearing corporation. OTC","page_number":424,"box":{"x":116,"y":565,"width":742,"height":12}},{"id":"88196278-ae0d-454b-afa2-554525bd8384","block_type":"box","text":"options have more flexible terms negotiated between the buyer and the seller, but are subject to","page_number":424,"box":{"x":116,"y":581,"width":717,"height":12}},{"id":"aa41ef35-218e-4603-8c36-01a99b004689","block_type":"box","text":"greater credit risk. OTC options also involve greater illiquidity risk.","page_number":424,"box":{"x":116,"y":596,"width":493,"height":12}},{"id":"b121a19d-a54b-439b-b77c-0cced7a1f57c","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in","page_number":424,"box":{"x":116,"y":628,"width":709,"height":12}},{"id":"5af393b6-8435-4f19-80ca-fa69f97a36b4","block_type":"box","text":"different payment structures and/or expirations (commonly referred to as exotic options). For example,","page_number":424,"box":{"x":116,"y":644,"width":765,"height":12}},{"id":"853c6917-ff00-419b-a6c7-70443489f4a2","block_type":"box","text":"barrier options are exotic options that can only be exercised (or automatically expire) if the price of the","page_number":424,"box":{"x":117,"y":659,"width":761,"height":12}},{"id":"78e6f267-5423-4f25-9c88-99ec7a5d87a8","block_type":"box","text":"underlying asset reaches one or more predetermined levels on or before expiration. Binary options are","page_number":424,"box":{"x":117,"y":675,"width":760,"height":12}},{"id":"6fb29c04-eb74-49b8-94d2-c1a3d897ac5a","block_type":"box","text":"another example of exotic options which have a fixed all-or-nothing payout if one or more","page_number":424,"box":{"x":116,"y":690,"width":661,"height":12}},{"id":"7d300c19-72cd-43a7-bf8e-4824078a775e","block_type":"box","text":"predetermined conditions are met. Exotic options are typically traded in OTC markets.","page_number":424,"box":{"x":117,"y":706,"width":635,"height":12}},{"id":"339ac281-efd7-48ce-8640-d29276c4028f","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example,","page_number":424,"box":{"x":116,"y":738,"width":763,"height":12}},{"id":"ea38256e-08dc-4338-bec7-26522f10b5ee","block_type":"box","text":"there are significant differences between the securities and options markets that could result in an","page_number":424,"box":{"x":116,"y":753,"width":726,"height":12}},{"id":"784d576d-4c48-4255-aea7-5121b1f87aa4","block_type":"box","text":"imperfect correlation between these markets, causing a given transaction not to achieve its objectives.","page_number":424,"box":{"x":117,"y":769,"width":757,"height":12}},{"id":"29662fe5-11c3-44d7-858a-57751648ab7c","block_type":"box","text":"In addition, a liquid market for particular options, whether traded OTC or on a national securities","page_number":424,"box":{"x":117,"y":784,"width":710,"height":12}},{"id":"2df52958-8c36-4f0f-a970-ebce1ce6bca6","block_type":"box","text":"exchange (“Exchange”) may be absent for reasons which include the following: there may be","page_number":424,"box":{"x":116,"y":800,"width":690,"height":12}},{"id":"56b562e1-3b05-43df-be0e-b1a4046bf708","block_type":"box","text":"insufficient trading interest in certain options; restrictions may be imposed by an Exchange on opening","page_number":424,"box":{"x":117,"y":815,"width":757,"height":12}},{"id":"2bc2fc9a-53b0-4d9a-986c-763ff7abe6a1","block_type":"box","text":"transactions or closing transactions or both; trading halts, suspensions or other restrictions may be","page_number":424,"box":{"x":116,"y":831,"width":737,"height":12}},{"id":"c451dbc8-1fe9-43f0-8d18-07f0f54aa6ab","block_type":"box","text":"imposed with respect to particular classes or series of options or underlying securities; unusual or","page_number":424,"box":{"x":117,"y":846,"width":727,"height":12}},{"id":"d9d499c3-e4fa-4226-b1f5-e692b471c5d6","block_type":"box","text":"unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an","page_number":424,"box":{"x":117,"y":862,"width":708,"height":12}},{"id":"2bc6c4d9-ca56-4224-9b5d-080681b1b7b4","block_type":"box","text":"Exchange or the Options Clearing Corporation may not at all times be adequate to handle current","page_number":424,"box":{"x":117,"y":877,"width":728,"height":12}},{"id":"a3c07ed8-7d19-4065-bf68-fa3d75b4944f","block_type":"box","text":"II-26","page_number":424,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"38663943-db91-4026-90b2-4d193464e0e9","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":424,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"67abf5d0-87d5-4370-a625-1fc041a31d45","block_type":"box","text":"trading volume; or one or more Exchanges could, for economic or other reasons, decide or be","page_number":425,"box":{"x":116,"y":87,"width":703,"height":12}},{"id":"7a8413de-1d24-483f-81c1-c6de8cd3807a","block_type":"box","text":"compelled at some future date to discontinue the trading of options (or a particular class or series of","page_number":425,"box":{"x":116,"y":102,"width":746,"height":13}},{"id":"d4392d2e-72d1-4f25-a45e-32365ee6d1e2","block_type":"box","text":"options), in which event the market on that Exchange (or in that class or series of options) would cease","page_number":425,"box":{"x":116,"y":118,"width":770,"height":12}},{"id":"0fe07f26-0578-43f3-a33f-208139373f44","block_type":"box","text":"to exist, although outstanding options that had been issued by the Options Clearing Corporation as a","page_number":425,"box":{"x":116,"y":134,"width":753,"height":12}},{"id":"9bd57d6f-36c8-43b2-8a28-30b37eeadbfa","block_type":"box","text":"result of trades on that Exchange would continue to be exercisable in accordance with their terms.","page_number":425,"box":{"x":117,"y":149,"width":732,"height":12}},{"id":"3725a49d-b21d-4b6c-a467-8b50314472bd","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or","page_number":425,"box":{"x":117,"y":180,"width":749,"height":12}},{"id":"39dd9783-f5b6-47de-993e-357c9c3ad062","block_type":"box","text":"put options on the same asset that may be bought or written by a single investor, whether acting alone","page_number":425,"box":{"x":117,"y":196,"width":764,"height":12}},{"id":"dd353a45-96fe-4fe4-92ad-cfd6b3722a1b","block_type":"box","text":"or in concert with others (regardless of whether such options are written on the same or different","page_number":425,"box":{"x":116,"y":211,"width":720,"height":12}},{"id":"0edf85bd-52e0-4e08-b57f-3b2f21f39813","block_type":"box","text":"exchanges or are held or written on one or more accounts or through one or more brokers). Under","page_number":425,"box":{"x":116,"y":227,"width":735,"height":12}},{"id":"c2e7aa07-6c33-4fdf-b5ee-2500036ff678","block_type":"box","text":"these limitations, option positions of all investment companies advised by the Manager are combined","page_number":425,"box":{"x":116,"y":242,"width":755,"height":12}},{"id":"fc4ceb13-7833-4188-a392-ec49f5501800","block_type":"box","text":"for purposes of these limits. Pursuant to these limitations, an exchange may order the liquidation of","page_number":425,"box":{"x":116,"y":258,"width":740,"height":12}},{"id":"fca74b8f-49d1-4c2a-ad46-fd6cb5cb8ad0","block_type":"box","text":"positions and may impose other sanctions or restrictions. These position limits may restrict the number","page_number":425,"box":{"x":117,"y":273,"width":766,"height":12}},{"id":"ffa11477-31b0-4ff6-bd13-ce6677347456","block_type":"box","text":"of listed options that a Fund may buy or sell.","page_number":425,"box":{"x":116,"y":289,"width":334,"height":12}},{"id":"9e082e19-6c3c-4942-afea-bb0f7d474d74","block_type":"box","text":"Call Options.","page_number":425,"box":{"x":117,"y":320,"width":100,"height":12}},{"id":"2ed88a51-0c01-40d3-89a6-1737689456c9","block_type":"box","text":"A Fund may purchase call options on any of the types of securities or instruments in","page_number":425,"box":{"x":217,"y":320,"width":629,"height":12}},{"id":"41b48c62-a063-44f0-a9ab-e9459c8fff3d","block_type":"box","text":"which it may invest. A purchased call option gives a Fund the right to buy, and obligates the seller to","page_number":425,"box":{"x":116,"y":335,"width":748,"height":12}},{"id":"af00289f-4c7d-4a32-942d-c1c6d3be3b0b","block_type":"box","text":"sell, the underlying security at the exercise price at any time during the option period. A Fund also may","page_number":425,"box":{"x":116,"y":351,"width":767,"height":12}},{"id":"461c54ba-52df-4309-b8ed-7023c0d8111a","block_type":"box","text":"purchase and sell call options on indices. Index options are similar to options on securities except that,","page_number":425,"box":{"x":117,"y":366,"width":765,"height":12}},{"id":"04e74eab-9f91-4829-b1d8-107992100456","block_type":"box","text":"rather than taking or making delivery of securities underlying the option at a specified price upon","page_number":425,"box":{"x":117,"y":382,"width":718,"height":12}},{"id":"aaf949d4-bd61-4d5b-9b0b-1c7f0b245c49","block_type":"box","text":"exercise, an index option gives the holder the right to receive cash upon exercise of the option if the","page_number":425,"box":{"x":116,"y":397,"width":745,"height":12}},{"id":"fa5c83f0-5b6f-4e9c-b1a4-f815b5ab14d2","block_type":"box","text":"level of the index upon which the option is based is greater than the exercise price of the option.","page_number":425,"box":{"x":117,"y":413,"width":716,"height":12}},{"id":"eca4fd60-184a-4d68-8112-1edd7d902a34","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","page_number":425,"box":{"x":116,"y":444,"width":750,"height":12}},{"id":"51b2327f-2d33-4eeb-83aa-91ff520d17fa","block_type":"box","text":"where the exercise price of the call held is (i) equal to or less than the exercise price of the call written,","page_number":425,"box":{"x":116,"y":459,"width":765,"height":12}},{"id":"de6f0553-1920-43b8-8ea1-6d36cc6c7a5f","block_type":"box","text":"or (ii) greater than the exercise price of the call written provided the difference is maintained by the","page_number":425,"box":{"x":116,"y":475,"width":736,"height":12}},{"id":"b3f58709-9ee7-4e2c-8fc0-365ad95e7d05","block_type":"box","text":"Fund in assets which are not considered illiquid investments under the Funds’ Liquidity Program (as","page_number":425,"box":{"x":117,"y":490,"width":745,"height":12}},{"id":"ce4cb41e-a220-46fc-9272-f663686a9d0b","block_type":"box","text":"defined below) (“liquid assets”) designated on the Manager’s or the sub-adviser’s books and records to","page_number":425,"box":{"x":116,"y":506,"width":769,"height":12}},{"id":"660f7602-efec-4b93-a0bd-20cc281749e1","block_type":"box","text":"the extent required by Commission guidelines.","page_number":425,"box":{"x":116,"y":521,"width":350,"height":12}},{"id":"04a3ad44-e827-40e9-a1b1-a491d94d05cf","block_type":"box","text":"A Fund may write (","page_number":425,"box":{"x":116,"y":552,"width":140,"height":12}},{"id":"2a5142f8-6b90-4eab-9312-dd520aad637e","block_type":"box","text":"i.e.","page_number":425,"box":{"x":257,"y":552,"width":21,"height":10}},{"id":"ee3589d4-e4ef-4ecb-9c24-c01602f5b696","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest","page_number":425,"box":{"x":281,"y":552,"width":599,"height":12}},{"id":"04742b61-4e19-4c0b-9867-cac33e4bc459","block_type":"box","text":"and to enter into closing purchase transactions with respect to certain of such options. A covered call","page_number":425,"box":{"x":116,"y":568,"width":754,"height":12}},{"id":"b2a4df8a-7da0-4b09-8cf1-17259b88140c","block_type":"box","text":"option is an option in which a Fund, in return for a premium, gives another party a right to buy specified","page_number":425,"box":{"x":116,"y":583,"width":769,"height":12}},{"id":"a6686324-82cf-4475-9fed-1f258940e82d","block_type":"box","text":"securities owned by the Fund at a specified future date and price set at the time of the contract. The","page_number":425,"box":{"x":116,"y":599,"width":747,"height":12}},{"id":"fd01989c-47f9-47dc-b55b-65518d3dcc3a","block_type":"box","text":"principal reason for writing call options is the attempt to realize, through the receipt of premiums, a","page_number":425,"box":{"x":117,"y":614,"width":733,"height":12}},{"id":"0f34bf24-4469-4add-98d6-363305147b69","block_type":"box","text":"greater return than would be realized on the securities alone. By writing covered call options, a Fund","page_number":425,"box":{"x":116,"y":630,"width":750,"height":12}},{"id":"362cb999-22c4-4b9b-9dce-165080b58555","block_type":"box","text":"gives up the opportunity, while the option is in effect, to profit from any price increase in the underlying","page_number":425,"box":{"x":116,"y":645,"width":763,"height":12}},{"id":"59260ff0-9534-426a-b8e2-e965a1be5b4a","block_type":"box","text":"security above the option exercise price. In addition, a Fund’s ability to sell the underlying security will","page_number":425,"box":{"x":116,"y":661,"width":753,"height":12}},{"id":"4cf82e52-6cb2-4b31-a417-67820f4a23bd","block_type":"box","text":"be limited while the option is in effect unless the Fund enters into a closing purchase transaction. A","page_number":425,"box":{"x":117,"y":676,"width":733,"height":12}},{"id":"ca171a7e-8fe7-475a-a682-2feaf28ad24c","block_type":"box","text":"closing purchase transaction cancels out a Fund’s position as the writer of an option by means of an","page_number":425,"box":{"x":116,"y":692,"width":742,"height":12}},{"id":"5dc52583-46ea-4b93-8c0b-8637dfef7655","block_type":"box","text":"offsetting purchase of an identical option prior to the expiration of the option it has written. Covered call","page_number":425,"box":{"x":116,"y":707,"width":762,"height":12}},{"id":"71363dd4-71d7-4526-baff-709844610db8","block_type":"box","text":"options also serve as a partial hedge to the extent of the premium received against the price of the","page_number":425,"box":{"x":116,"y":723,"width":731,"height":12}},{"id":"cea512cf-21c5-4886-8338-54f8daf167a4","block_type":"box","text":"underlying security declining.","page_number":425,"box":{"x":117,"y":738,"width":213,"height":12}},{"id":"eafd65b0-c841-4e03-af6a-d7b54eca31d5","block_type":"box","text":"A Fund may write (","page_number":425,"box":{"x":116,"y":769,"width":140,"height":12}},{"id":"205b9f5a-3ba8-42e2-b8ae-bdf9fe18e209","block_type":"box","text":"i.e.","page_number":425,"box":{"x":257,"y":769,"width":21,"height":10}},{"id":"f29ef16c-ee34-449f-ac2c-ae561d71d20b","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest","page_number":425,"box":{"x":281,"y":769,"width":585,"height":12}},{"id":"1fdfdcef-7342-430e-8bb7-e66e8930fabc","block_type":"box","text":"but that are not currently held by the Fund. The principal reason for writing uncovered call options is to","page_number":425,"box":{"x":117,"y":785,"width":758,"height":12}},{"id":"bcab3953-6775-459a-a966-293659efe2c2","block_type":"box","text":"realize income without committing capital to the ownership of the underlying securities or instruments.","page_number":425,"box":{"x":117,"y":800,"width":752,"height":12}},{"id":"8ccb0693-012f-4b71-a891-7a62f1e2022c","block_type":"box","text":"When writing uncovered call options, a Fund must deposit and maintain sufficient margin with the","page_number":425,"box":{"x":116,"y":816,"width":721,"height":12}},{"id":"d486ae66-89a0-41ce-a0dd-7e36f623c8ea","block_type":"box","text":"broker-dealer through which it made the uncovered call option as collateral to ensure that the securities","page_number":425,"box":{"x":117,"y":831,"width":771,"height":12}},{"id":"be0fe42e-e04d-4c16-9e85-1ca4f872a413","block_type":"box","text":"can be purchased for delivery if and when the option is exercised. During periods of declining","page_number":425,"box":{"x":116,"y":847,"width":697,"height":12}},{"id":"fe19109b-90fa-48d6-a6c6-5487f1193c1e","block_type":"box","text":"securities prices or when prices are stable, writing uncovered calls can be a profitable strategy to","page_number":425,"box":{"x":116,"y":862,"width":724,"height":12}},{"id":"13c2b78d-251a-4b8e-95de-acabe74b4b06","block_type":"box","text":"increase a Fund’s income with minimal capital risk. Uncovered calls are riskier than covered calls","page_number":425,"box":{"x":117,"y":878,"width":724,"height":12}},{"id":"a4bc3d5d-2697-4d80-967b-01288129bf81","block_type":"box","text":"II-27","page_number":425,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"2042a829-326c-4a33-b66f-ef4e8d1fe9f0","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":425,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b17d64b7-c8e9-4218-af33-4f7339207798","block_type":"box","text":"because there is no underlying security held by a Fund that can act as a partial hedge. Uncovered calls","page_number":426,"box":{"x":117,"y":87,"width":771,"height":12}},{"id":"084d0d54-826b-46ea-a7d5-fb43e4c7e3b9","block_type":"box","text":"have speculative characteristics and the potential for loss is unlimited. When an uncovered call is","page_number":426,"box":{"x":117,"y":102,"width":725,"height":12}},{"id":"18f55258-6d6e-43b6-beef-4fd9256329a9","block_type":"box","text":"exercised, a Fund must purchase the underlying security to meet its call obligation. There is also a risk,","page_number":426,"box":{"x":116,"y":118,"width":771,"height":12}},{"id":"f76b3760-7ec8-4d4a-960e-769a9cb1853f","block_type":"box","text":"especially with preferred and debt securities that lack sufficient liquidity, that the securities may not be","page_number":426,"box":{"x":116,"y":134,"width":760,"height":12}},{"id":"bbde1ec4-f76c-414f-8546-1a7ed809001f","block_type":"box","text":"available for purchase. If the purchase price exceeds the exercise price, a Fund will lose the difference.","page_number":426,"box":{"x":116,"y":149,"width":772,"height":12}},{"id":"da3baa2a-0985-4f6f-baa7-41ef3ff638bc","block_type":"box","text":"Put Options.","page_number":426,"box":{"x":116,"y":180,"width":97,"height":12}},{"id":"30c1976e-39e0-4725-b28a-f9a7f56b016d","block_type":"box","text":"A Fund may purchase put options to seek to hedge against a decline in the value of its","page_number":426,"box":{"x":213,"y":180,"width":648,"height":12}},{"id":"69b0d82b-1823-4a87-86c0-54b97a20b295","block_type":"box","text":"securities or to enhance its return. By buying a put option, a Fund acquires a right to sell the underlying","page_number":426,"box":{"x":116,"y":196,"width":770,"height":12}},{"id":"af4df36d-d179-462f-99dd-19d272b5d1d5","block_type":"box","text":"securities or instruments at the exercise price, thus limiting the Fund’s risk of loss through a decline in","page_number":426,"box":{"x":116,"y":211,"width":760,"height":12}},{"id":"80cfb961-d816-42f6-94d4-aed08d3dfb23","block_type":"box","text":"the market value of the securities or instruments until the put option expires. The amount of any","page_number":426,"box":{"x":116,"y":227,"width":714,"height":12}},{"id":"08ef9936-1427-4241-9ef5-84f102bd2905","block_type":"box","text":"appreciation in the value of the underlying securities or instruments will be partially offset by the","page_number":426,"box":{"x":116,"y":242,"width":714,"height":12}},{"id":"b7f2cc37-4d92-4731-8c54-a9badc9fd2a1","block_type":"box","text":"amount of the premium paid for the put option and any related transaction costs. Prior to its expiration,","page_number":426,"box":{"x":116,"y":258,"width":765,"height":12}},{"id":"2017d79f-f1f4-4f25-bf63-aba3032773ed","block_type":"box","text":"a put option may be sold in a closing sale transaction and profit or loss from the sale will depend on","page_number":426,"box":{"x":116,"y":273,"width":743,"height":12}},{"id":"52813ac3-ef61-43e5-8d44-bec7c1d8c0df","block_type":"box","text":"whether the amount received is more or less than the premium paid for the put option plus the related","page_number":426,"box":{"x":116,"y":289,"width":759,"height":12}},{"id":"3a391e18-e69d-46cc-b88b-62919ae28b8e","block_type":"box","text":"transaction costs. A closing sale transaction cancels out a Fund’s position as the purchaser of an","page_number":426,"box":{"x":116,"y":304,"width":725,"height":12}},{"id":"7da3fb76-ef2b-46f8-8828-76251154ff53","block_type":"box","text":"option by means of an offsetting sale of an identical option prior to the expiration of the option it has","page_number":426,"box":{"x":116,"y":320,"width":743,"height":12}},{"id":"764197fa-6bf7-40fc-820e-900e12bceae9","block_type":"box","text":"purchased. A Fund also may purchase uncovered put options.","page_number":426,"box":{"x":117,"y":335,"width":467,"height":12}},{"id":"9868a3f7-5fa0-42b2-9516-4e22114f205d","block_type":"box","text":"A Fund also may write (","page_number":426,"box":{"x":116,"y":366,"width":176,"height":12}},{"id":"4d7e53ce-fcd1-4ea1-90f2-ecefe321db5b","block_type":"box","text":"i.e.","page_number":426,"box":{"x":293,"y":366,"width":20,"height":10}},{"id":"9d1bbfa4-03c1-4069-8df2-dd653ff923a0","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held","page_number":426,"box":{"x":316,"y":366,"width":563,"height":12}},{"id":"8bd22673-c3fc-4fad-8c5e-b94f2255aca2","block_type":"box","text":"by the Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":426,"box":{"x":117,"y":382,"width":763,"height":12}},{"id":"320cbe65-6fac-4d0f-a02c-75ac7c50e71c","block_type":"box","text":"A Fund also may write (","page_number":426,"box":{"x":116,"y":413,"width":172,"height":12}},{"id":"6232cb9d-3126-4e83-a248-2e28ef1bbb08","block_type":"box","text":"i.e.","page_number":426,"box":{"x":289,"y":413,"width":20,"height":9}},{"id":"3f975497-1ee6-4e27-9010-17d7c53eb5a3","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest","page_number":426,"box":{"x":312,"y":413,"width":575,"height":12}},{"id":"87e2e512-4a76-487a-95ba-50ef900f0200","block_type":"box","text":"but with respect to which the Fund does not current","page_number":426,"box":{"x":117,"y":428,"width":372,"height":12}},{"id":"9df1728c-8762-4c1f-af1c-bb404d6fda9e","block_type":"box","text":"ly have a corresponding short position or has not","page_number":426,"box":{"x":490,"y":428,"width":359,"height":12}},{"id":"c9c39b20-5fcc-44c4-971b-1e3add4ffdaa","block_type":"box","text":"deposited as collateral cash equal to the exercise va","page_number":426,"box":{"x":116,"y":444,"width":381,"height":12}},{"id":"e68b95a5-3d59-450d-a442-91bd78609367","block_type":"box","text":"lue of the put option with","page_number":426,"box":{"x":498,"y":444,"width":182,"height":12}},{"id":"39ccd35a-a964-4654-bc7d-890a8e7d148f","block_type":"box","text":"the broker-dealer through","page_number":426,"box":{"x":680,"y":444,"width":190,"height":12}},{"id":"7f9aede4-e571-413f-bc7d-533ff4e15668","block_type":"box","text":"which it made the uncovered put opt","page_number":426,"box":{"x":116,"y":459,"width":264,"height":12}},{"id":"8e503bec-178b-46db-84a1-cbc5e7f3e2df","block_type":"box","text":"ion. The principal reason for writing uncovered put options is to","page_number":426,"box":{"x":381,"y":459,"width":461,"height":12}},{"id":"41dcd81e-2df3-49b7-bb84-c84dcaefb8f0","block_type":"box","text":"receive premium income and to acquire such securities","page_number":426,"box":{"x":117,"y":475,"width":400,"height":12}},{"id":"5841ecd1-db8d-448e-a188-95565af17a80","block_type":"box","text":"or instruments at a net cost below the current","page_number":426,"box":{"x":517,"y":475,"width":339,"height":9}},{"id":"af0274f8-ffed-4962-adbd-279dcf60f10d","block_type":"box","text":"market value. A Fund has the obligation to buy the","page_number":426,"box":{"x":117,"y":490,"width":370,"height":12}},{"id":"7220c869-ff2e-42f6-8455-2eb18f6a7915","block_type":"box","text":"securities or instruments at an agreed upon price if","page_number":426,"box":{"x":488,"y":490,"width":373,"height":12}},{"id":"0f98d082-67e8-48c2-aa25-6f0ca80d27fc","block_type":"box","text":"the price of the securities or instruments decreases bel","page_number":426,"box":{"x":116,"y":506,"width":397,"height":12}},{"id":"dcd41885-9a9a-47ae-90b1-9a80d7a6a43d","block_type":"box","text":"ow the exercise price. If the price of the securities","page_number":426,"box":{"x":515,"y":506,"width":364,"height":12}},{"id":"ccdc47c9-e9b3-49b0-9a02-520f6cdf050f","block_type":"box","text":"or instruments increases during the option period,","page_number":426,"box":{"x":116,"y":521,"width":360,"height":12}},{"id":"a3c797ae-33d4-4c1d-80b7-dc93bb4b69f8","block_type":"box","text":"the option will expire worthless and a Fund will retain","page_number":426,"box":{"x":477,"y":521,"width":393,"height":12}},{"id":"a7572dfa-24e9-44d0-8e4c-15f95e5dc73d","block_type":"box","text":"the premium and will not have to purchase the securiti","page_number":426,"box":{"x":116,"y":537,"width":392,"height":12}},{"id":"4cee0f90-3f46-4aca-9dbf-b46326f407d9","block_type":"box","text":"es or instruments at the exercise price.","page_number":426,"box":{"x":510,"y":537,"width":286,"height":12}},{"id":"dcd969f3-39ed-4f9f-80f8-8d9f239f1d96","block_type":"box","text":"Options on Government National Mortgage Association (“GNMA”) Certificates.","page_number":426,"box":{"x":117,"y":568,"width":586,"height":12}},{"id":"035c4e38-cde6-41dd-b525-f3f1daf03918","block_type":"box","text":"The following","page_number":426,"box":{"x":704,"y":568,"width":103,"height":12}},{"id":"2f020e51-6cfa-479e-b515-413e426f7072","block_type":"box","text":"information relates to the unique characteristics of options on GNMA Certificates. Since the remaining","page_number":426,"box":{"x":117,"y":583,"width":759,"height":12}},{"id":"0e33e39e-a29e-4ab4-8b0a-eb36f095bb4c","block_type":"box","text":"principal balance of GNMA Certificates declines each month as a result of mortgage payments, a","page_number":426,"box":{"x":117,"y":599,"width":725,"height":12}},{"id":"1df692b1-bc00-428e-a84e-8a82586b6a37","block_type":"box","text":"Fund, as a writer of a GNMA call holding GNMA Certificates as “cover” to satisfy its delivery obligation","page_number":426,"box":{"x":117,"y":614,"width":761,"height":12}},{"id":"5984e00d-36de-4a0b-a724-a28404114f73","block_type":"box","text":"in the event of exercise, may find that the GNMA Certificates it holds no longer have a sufficient","page_number":426,"box":{"x":117,"y":630,"width":714,"height":12}},{"id":"78e64c72-28b0-493a-b135-b64499d16e69","block_type":"box","text":"remaining principal balance for this purpose. Should this occur, a Fund will purchase additional GNMA","page_number":426,"box":{"x":117,"y":645,"width":763,"height":12}},{"id":"6dbcdbb8-0e22-4243-a6aa-9f93c2b06ba4","block_type":"box","text":"Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash market in order","page_number":426,"box":{"x":117,"y":661,"width":750,"height":12}},{"id":"28c48bff-ef22-4948-b43a-325e649eac26","block_type":"box","text":"to maintain its “cover.”","page_number":426,"box":{"x":116,"y":676,"width":165,"height":10}},{"id":"f4016a19-52cd-4692-b3e6-267a5e21e2f5","block_type":"box","text":"A GNMA Certificate held by a Fund to cover an option position in any but the nearest expiration month","page_number":426,"box":{"x":116,"y":707,"width":758,"height":12}},{"id":"7981c5f4-502d-464d-9c0c-65e3e0a420c8","block_type":"box","text":"may cease to represent cover for the option in the event of a decline in the GNMA coupon rate at","page_number":426,"box":{"x":117,"y":723,"width":719,"height":12}},{"id":"df45077a-1d55-435c-830c-a4c7e32349c4","block_type":"box","text":"which new pools are originated under the FHA/VA loan ceiling in effect at any given time. If this should","page_number":426,"box":{"x":116,"y":738,"width":759,"height":12}},{"id":"009ac96c-e339-4bce-901c-cf26ce34b52b","block_type":"box","text":"occur, a Fund will no longer be covered, and the Fund will either enter into a closing purchase","page_number":426,"box":{"x":116,"y":754,"width":696,"height":12}},{"id":"b8f033c1-9097-47ab-959b-0483be9a1843","block_type":"box","text":"transaction or replace such Certificate with a certificate that represents cover. When a Fund closes its","page_number":426,"box":{"x":116,"y":769,"width":754,"height":12}},{"id":"afbda784-a987-4f4e-a9b2-39e28fb455fc","block_type":"box","text":"position or replaces such Certificate, it may realize an unanticipated loss and incur transaction costs.","page_number":426,"box":{"x":117,"y":785,"width":745,"height":12}},{"id":"9940a2b4-41dc-47d8-ba30-9f8b4f0de641","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":426,"box":{"x":117,"y":816,"width":243,"height":12}},{"id":"2878eaa1-b81e-429e-b81b-ccda6d1e5c09","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to","page_number":426,"box":{"x":366,"y":816,"width":508,"height":12}},{"id":"8630ce8d-28d0-4333-b0ac-31a046789fdb","block_type":"box","text":"enter into a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap","page_number":426,"box":{"x":116,"y":831,"width":750,"height":12}},{"id":"d50be6a9-9fdf-4d70-81dd-6eea8e5eb23a","block_type":"box","text":"agreement, at a designated future time on specified terms. A Fund may write (","page_number":426,"box":{"x":116,"y":847,"width":580,"height":12}},{"id":"27c87328-b3df-4c43-9cfa-2370603eb044","block_type":"box","text":"i.e.","page_number":426,"box":{"x":698,"y":847,"width":20,"height":9}},{"id":"3cff12b4-5129-4f35-ac44-24f5e432a6e5","block_type":"box","text":", sell) and purchase","page_number":426,"box":{"x":721,"y":847,"width":150,"height":12}},{"id":"ea6fcc48-2047-4660-9afb-cd452cffc7ff","block_type":"box","text":"put and call swaptions. Depending on the terms of the particular option agreement, a Fund will","page_number":426,"box":{"x":117,"y":862,"width":704,"height":12}},{"id":"419ebc4f-4b41-4897-aa2c-1f5e87a28208","block_type":"box","text":"generally incur a greater degree of risk when it writes a swaption than it will incur when it purchases a","page_number":426,"box":{"x":116,"y":878,"width":758,"height":12}},{"id":"7433d134-1abe-432d-8539-4229c5b2a0b1","block_type":"box","text":"II-28","page_number":426,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"582ba8a3-eaec-4685-9e7d-7d0b2ff49a51","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":426,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f0e1a1d1-a256-4dd2-87a3-514cbf569ffe","block_type":"box","text":"swaption. When a Fund purchases a swaption, it risks losing only the amount of the premium it has","page_number":427,"box":{"x":116,"y":87,"width":741,"height":12}},{"id":"b5af5c4e-da06-4a60-93f6-78162860c392","block_type":"box","text":"paid should it decide to let the option expire unexercised. However, when a Fund writes a swaption,","page_number":427,"box":{"x":117,"y":103,"width":743,"height":11}},{"id":"ddfffe89-d46a-4290-b5bb-d8f632d81c4f","block_type":"box","text":"upon exercise of the option the Fund will become obligated according to the terms of the underlying","page_number":427,"box":{"x":117,"y":118,"width":743,"height":12}},{"id":"276163ab-f4d4-413d-9517-ead3db27e7a0","block_type":"box","text":"agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":427,"box":{"x":116,"y":134,"width":754,"height":12}},{"id":"35890b30-37a0-4a3b-90f5-440400053590","block_type":"box","text":"required, to be cleared.","page_number":427,"box":{"x":117,"y":149,"width":177,"height":12}},{"id":"ceda9383-b2d0-4e3e-ae58-5c76fc41a9f5","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a particular investment","page_number":427,"box":{"x":116,"y":180,"width":770,"height":12}},{"id":"5a0ed997-8943-4d00-8196-0e2c1803ad9a","block_type":"box","text":"or portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates","page_number":427,"box":{"x":116,"y":196,"width":772,"height":12}},{"id":"e6e0af57-213e-41d7-933e-cf4a978d592b","block_type":"box","text":"purchasing at a later date. A Fund generally will use these transactions for hedging purposes, not for","page_number":427,"box":{"x":117,"y":211,"width":751,"height":12}},{"id":"573e6188-9162-4aec-88f6-5401658e80af","block_type":"box","text":"speculation.","page_number":427,"box":{"x":116,"y":227,"width":94,"height":11}},{"id":"9298ef1d-4005-40e1-bbc8-d33a8c0909b9","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “— Risk","page_number":427,"box":{"x":116,"y":258,"width":765,"height":12}},{"id":"d170e99e-23e2-4ab9-9ecc-5f85e14edc63","block_type":"box","text":"Factors in Derivatives” above.","page_number":427,"box":{"x":117,"y":273,"width":226,"height":10}},{"id":"c10e4b50-75e9-429a-bddf-a7501e7aac46","block_type":"box","text":"FLEX Options.","page_number":427,"box":{"x":116,"y":304,"width":114,"height":12}},{"id":"582bcbc7-20bb-430a-8164-a911ab9159a0","block_type":"box","text":"FLEX Options are customized option contracts available through national securities","page_number":427,"box":{"x":231,"y":304,"width":623,"height":12}},{"id":"daefe7dc-f52c-4a3a-ad5b-592ce4d9a0e6","block_type":"box","text":"exchanges that are guaranteed for settlement by the Options Clearing Corporation (“OCC”). FLEX","page_number":427,"box":{"x":116,"y":320,"width":733,"height":12}},{"id":"fb74ce60-3960-4f97-b47a-e3b4f78cf04d","block_type":"box","text":"Options are listed on a U.S. national securities exchange. FLEX Options provide investors with the","page_number":427,"box":{"x":116,"y":335,"width":736,"height":12}},{"id":"30bd25a3-0c1c-4823-b89b-4a7c463862b2","block_type":"box","text":"ability to customize assets referenced by the options, exercise prices, exercise styles (i.e., American","page_number":427,"box":{"x":116,"y":351,"width":750,"height":12}},{"id":"565f3ecf-95e5-41aa-89b4-08fafd10fd91","block_type":"box","text":"style, exercisable any time prior to the expiration date, or European-style, exercisable only on the","page_number":427,"box":{"x":116,"y":366,"width":726,"height":12}},{"id":"867827c8-71ce-4efb-a19a-5ed77be44e62","block_type":"box","text":"option expiration date) and expiration dates, while achieving price discovery in competitive, transparent","page_number":427,"box":{"x":116,"y":382,"width":769,"height":12}},{"id":"e69cd00b-391d-44b5-88a7-2b889e26a218","block_type":"box","text":"auctions markets and avoiding the counterparty exposure of OTC options positions. Each option","page_number":427,"box":{"x":116,"y":397,"width":719,"height":12}},{"id":"d523871a-ac1a-4580-a82a-18de9be096ee","block_type":"box","text":"contract entitles the holder thereof to purchase (for the","page_number":427,"box":{"x":116,"y":413,"width":410,"height":12}},{"id":"934b8b55-138c-483c-9061-d22ad6955adc","block_type":"box","text":"call options) or sell (for the put options) shares","page_number":427,"box":{"x":527,"y":413,"width":349,"height":12}},{"id":"d0f29034-e4a3-4fea-9152-f974eaca5441","block_type":"box","text":"of the reference asset at the strike price. A Fund’s portfolio may include several types of FLEX Options,","page_number":427,"box":{"x":116,"y":428,"width":772,"height":12}},{"id":"9cd6edcb-7414-4af5-9d76-52f95d1bb09d","block_type":"box","text":"including both purchased and written put and call options (as further described below). The FLEX","page_number":427,"box":{"x":117,"y":444,"width":726,"height":12}},{"id":"ef950d24-a279-4137-8079-bbffdd871275","block_type":"box","text":"Options are all European style options, which means that they are exercisable at a predetermined","page_number":427,"box":{"x":116,"y":459,"width":730,"height":12}},{"id":"1934668e-97c4-49db-bda4-1086c5796415","block_type":"box","text":"specified price (the “strike price”) only on the FLEX Option’s expiration date.","page_number":427,"box":{"x":116,"y":475,"width":569,"height":12}},{"id":"38f8da98-8512-473b-b549-5976f0634902","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the","page_number":427,"box":{"x":116,"y":506,"width":752,"height":12}},{"id":"a7449c3f-0547-475e-8624-a6916366e2de","block_type":"box","text":"“buyer for every seller and the seller for every buyer”, reducing counterparty risk for clearing members","page_number":427,"box":{"x":116,"y":521,"width":762,"height":12}},{"id":"bea651f1-cd7b-457d-a2c7-d72d42663895","block_type":"box","text":"and options traders. Although guaranteed for settlement by the OCC, FLEX Options are still subject to","page_number":427,"box":{"x":116,"y":537,"width":762,"height":12}},{"id":"395f3029-d4ad-4f19-98c3-e944d272b597","block_type":"box","text":"counterparty risk with the OCC and subject to the risk that the OCC may fail to perform the settlement","page_number":427,"box":{"x":116,"y":552,"width":760,"height":12}},{"id":"8f6e6cdd-6b2a-4dee-905d-aeacc90e3e3c","block_type":"box","text":"of the FLEX Options due to bankruptcy or other adverse reasons. A Fund bears the risk that the OCC","page_number":427,"box":{"x":116,"y":568,"width":759,"height":12}},{"id":"c3025912-fd7e-40d5-9621-9692053c60db","block_type":"box","text":"will be unable or unwilling to perform its obligations under the FLEX Options contracts.","page_number":427,"box":{"x":116,"y":583,"width":646,"height":12}},{"id":"e0e13098-a4dc-4c5a-bba3-5b749631775b","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the","page_number":427,"box":{"x":116,"y":614,"width":744,"height":12}},{"id":"503fbe71-e7dd-4ecd-9942-9ef7ee6ef31c","block_type":"box","text":"FLEX Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and","page_number":427,"box":{"x":117,"y":630,"width":760,"height":12}},{"id":"89a140e7-a94e-4f23-86be-e0980a4f58c2","block_type":"box","text":"rules: certain stock dividends or distributions, stock splits, reverse stock splits, rights offerings,","page_number":427,"box":{"x":117,"y":645,"width":702,"height":12}},{"id":"7c1eb034-6117-4ae3-9cb5-00287f3fd054","block_type":"box","text":"distributions, reorganizations, recapitalizations, or reclassifications with respect to an underlying","page_number":427,"box":{"x":116,"y":661,"width":710,"height":12}},{"id":"c86d46be-ebee-48b4-a6a2-8b621e4b3479","block_type":"box","text":"security, or a merger, consolidation, dissolution or liquidation of the issuer of the underlying security.","page_number":427,"box":{"x":116,"y":676,"width":742,"height":12}},{"id":"c43eeb55-70fc-4e17-bc09-af25e9266749","block_type":"box","text":"According to the OCC’s by-laws, the nature and extent of any such adjustment is to be determined by","page_number":427,"box":{"x":116,"y":692,"width":754,"height":12}},{"id":"da0c0ad8-ddc8-4a5b-893f-59640cf89306","block_type":"box","text":"the OCC’s Securities Committee, in light of the circumstances known to it at the time such","page_number":427,"box":{"x":116,"y":707,"width":667,"height":12}},{"id":"f23a9a14-6795-4931-9de4-8ded8d86f198","block_type":"box","text":"determination is made, based on its judgment as to what is appropriate for the protection of investors","page_number":427,"box":{"x":116,"y":723,"width":749,"height":12}},{"id":"324ebc4f-9bff-4f2e-abef-9020cca767a1","block_type":"box","text":"and the public interest, taking into account such factors as fairness to holders and writers (or","page_number":427,"box":{"x":116,"y":738,"width":687,"height":12}},{"id":"e0a899c3-7a95-4fa9-8801-72e6afd2196c","block_type":"box","text":"purchasers and sellers) of the affected options, the maintenance of a fair and orderly market in the","page_number":427,"box":{"x":117,"y":754,"width":729,"height":12}},{"id":"1360ce50-3af9-4f08-805e-0c1e9d6f86ff","block_type":"box","text":"affected options, consistency of interpretation and practice, efficiency of exercise settlement","page_number":427,"box":{"x":116,"y":769,"width":682,"height":12}},{"id":"7a367933-2119-41b6-8dd8-ddbaf51ff081","block_type":"box","text":"procedures, and the coordination with other clearing agencies of the clearance and settlement of","page_number":427,"box":{"x":117,"y":785,"width":717,"height":12}},{"id":"d1052e68-e8dd-4a21-9a7f-fe203d6f09fd","block_type":"box","text":"transactions in the underlying interest.","page_number":427,"box":{"x":116,"y":800,"width":282,"height":12}},{"id":"1e59b275-02e8-4f89-b93e-139c7bfb0b72","block_type":"box","text":"Certain Considerations Regarding Options","page_number":427,"box":{"x":151,"y":831,"width":314,"height":12}},{"id":"0028802e-0b75-45e8-8e76-77e0946ddfe8","block_type":"box","text":". The FLEX Options in which each Fund may invest will","page_number":427,"box":{"x":467,"y":831,"width":414,"height":12}},{"id":"eb004549-5e3c-4b9e-ab9e-9186689c9422","block_type":"box","text":"be options on an exchange-traded fund (“ETF”) or the S&P 500 Index (together with such ETF, a","page_number":427,"box":{"x":150,"y":847,"width":723,"height":12}},{"id":"2085ace8-c16c-4c5e-b04d-42e9f0df156c","block_type":"box","text":"“Reference Asset”). As such, the value of a Fund’s FLEX Options will fluctuate with changes in the","page_number":427,"box":{"x":150,"y":862,"width":735,"height":12}},{"id":"aea39063-c72a-4687-a68c-65f4fd2b9b74","block_type":"box","text":"value of the securities held by the ETF, and thus the ETF’s share price. In addition to the value of","page_number":427,"box":{"x":150,"y":878,"width":726,"height":12}},{"id":"bfcf2e74-97c3-4b37-b405-581be0cad381","block_type":"box","text":"II-29","page_number":427,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"d750e042-f45c-47e5-bc90-b2834b1dce0c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":427,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"282bace6-8846-44ed-b025-d6a70443998d","block_type":"box","text":"the ETF, the value of an option, in general, will reflect, among other things, the time remaining until","page_number":428,"box":{"x":150,"y":87,"width":738,"height":12}},{"id":"54e121d6-b753-4e88-9968-743f8b7f9574","block_type":"box","text":"expiration (the end of the Outcome Period), the relationship of the exercise price to the market","page_number":428,"box":{"x":150,"y":102,"width":704,"height":13}},{"id":"a8ba2444-51e0-44fe-8ee9-83dd1445492c","block_type":"box","text":"price of the Reference Asset, and general market conditions. Options that expire unexercised","page_number":428,"box":{"x":150,"y":118,"width":698,"height":12}},{"id":"503fa3fd-d8f8-48f7-96fa-097f25e9d1c2","block_type":"box","text":"have no value.","page_number":428,"box":{"x":150,"y":134,"width":113,"height":9}},{"id":"e9cbaf02-4510-4df8-83b4-13a69cf811c4","block_type":"box","text":"The puts and calls on the Reference Asset entitle the purchaser of the option the right to purchase","page_number":428,"box":{"x":150,"y":157,"width":734,"height":12}},{"id":"c132157b-8e34-4058-9f4d-c7dc11a45015","block_type":"box","text":"(for a call option) or sell (for a put option) the Reference Asset at a predetermined specified price","page_number":428,"box":{"x":150,"y":172,"width":723,"height":12}},{"id":"ed40532d-8821-4863-8027-f509935f9d72","block_type":"box","text":"(the “strike price”). When a Fund writes a call on the Reference Asset, it receives a premium and","page_number":428,"box":{"x":150,"y":188,"width":722,"height":12}},{"id":"85357722-2d03-4f74-baf7-f04c1a507b0a","block_type":"box","text":"agrees that the purchaser of the call, upon exercise of the call, will receive from the Fund the","page_number":428,"box":{"x":150,"y":203,"width":693,"height":12}},{"id":"e59d0bdc-ebdb-42e9-9c9d-a2acf05d1f0d","block_type":"box","text":"delivery of a specified number of shares of the ETF in exchange for the strike price. When a Fund","page_number":428,"box":{"x":150,"y":219,"width":729,"height":12}},{"id":"0c3a9989-86f3-450a-88d3-8aa5025fadb7","block_type":"box","text":"buys a call on the Reference Asset, it pays a premium and has the same rights to such call as","page_number":428,"box":{"x":150,"y":234,"width":702,"height":12}},{"id":"bd1554ae-6957-4ab5-b384-7b4f42a3219b","block_type":"box","text":"indicated above. When a Fund buys a put on the Reference Asset, it pays a premium and has the","page_number":428,"box":{"x":150,"y":250,"width":730,"height":12}},{"id":"07077d46-5cc1-4e09-9062-2c3694c09e79","block_type":"box","text":"right to require the seller of the put, upon the Fund’s exercise of the put, to deliver the specified","page_number":428,"box":{"x":150,"y":265,"width":710,"height":12}},{"id":"795d5abe-245e-4f02-bdf6-714f07ddbaaf","block_type":"box","text":"number of shares of the ETF in exchange for the strike price. When a Fund writes a put on the","page_number":428,"box":{"x":150,"y":281,"width":705,"height":12}},{"id":"1225c30d-85f3-40a2-adc4-4df18c110ed1","block_type":"box","text":"Reference Asset, it receives a premium and the purchaser of the put has the right to require the","page_number":428,"box":{"x":151,"y":296,"width":714,"height":12}},{"id":"9e8a2c06-d7da-48ae-be81-ce7b25f29ee1","block_type":"box","text":"Fund to deliver the specified number of shares of the ETF in exchange for the strike price.","page_number":428,"box":{"x":151,"y":312,"width":671,"height":12}},{"id":"cf6de472-e2b0-4a8d-bbde-e141fd0778c0","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may","page_number":428,"box":{"x":149,"y":335,"width":705,"height":12}},{"id":"3208906c-2aae-4c47-8ae3-e74a06b3f38d","block_type":"box","text":"also utilize FLEX Options that are cash-settled. Cash-settled options give the holder the right to","page_number":428,"box":{"x":150,"y":351,"width":711,"height":12}},{"id":"3731c831-d978-44fe-a547-099027264384","block_type":"box","text":"receive an amount (or owe an amount) of cash upon the exercise of the option. Gain or loss","page_number":428,"box":{"x":150,"y":366,"width":686,"height":12}},{"id":"a1257a36-d7a1-4577-957f-8adddc54bb7f","block_type":"box","text":"depends on changes in the value of the ETF’s share price relative to the strike price for a given","page_number":428,"box":{"x":150,"y":382,"width":710,"height":12}},{"id":"99ca24df-8042-47e4-bda4-351729b80afc","block_type":"box","text":"option contract. The amount of cash is equal to the difference between the closing price of the","page_number":428,"box":{"x":150,"y":397,"width":702,"height":12}},{"id":"e0b71b7a-02f9-4f70-b000-349e4ebd9cdf","block_type":"box","text":"ETF’s share price and the exercise price of the option contract times a specified multiple","page_number":428,"box":{"x":151,"y":413,"width":659,"height":12}},{"id":"6531882c-fdd2-4b1d-98a2-e92c32c6e63f","block_type":"box","text":"(“multiplier”), which determines the total value for each point of such difference.","page_number":428,"box":{"x":150,"y":428,"width":593,"height":12}},{"id":"f96137b7-60da-4d47-9fb6-89e0097d9fd7","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":428,"box":{"x":150,"y":451,"width":311,"height":12}},{"id":"abd708a7-672c-4251-8dd6-87228f889911","block_type":"box","text":". If a Fund has purchased an option and exercises it","page_number":428,"box":{"x":462,"y":451,"width":390,"height":12}},{"id":"8a93ea56-7f80-4c13-a240-98cec5c1ebc6","block_type":"box","text":"before the closing value for that day is available, it runs the risk that the level of the Reference","page_number":428,"box":{"x":150,"y":467,"width":702,"height":12}},{"id":"d658b070-ecc2-4e7d-95d8-bd849b54a0e9","block_type":"box","text":"Asset may subsequently change. If such a change causes the exercised option to fall out of the","page_number":428,"box":{"x":149,"y":482,"width":714,"height":12}},{"id":"51cd89ca-eb3c-4984-9fea-eddbd955acb9","block_type":"box","text":"money, the applicable Fund will be required to pay the difference between the closing Reference","page_number":428,"box":{"x":150,"y":498,"width":721,"height":12}},{"id":"b64dfeea-a9db-4664-a1ce-7a00f0fa3369","block_type":"box","text":"Asset value and the exercise price of the option (times the applicable multiplier) to the assigned","page_number":428,"box":{"x":149,"y":513,"width":714,"height":12}},{"id":"de9307cf-7e38-4394-937d-35e42146939f","block_type":"box","text":"writer.","page_number":428,"box":{"x":149,"y":529,"width":51,"height":9}},{"id":"a9d2ca00-3b8f-41ce-b5a9-cac815a8653a","block_type":"box","text":"Foreign Exchange Transactions.","page_number":428,"box":{"x":116,"y":560,"width":247,"height":12}},{"id":"a55b42f4-d5c5-4cfe-bcf4-3eeb0a2d5fa6","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX","page_number":428,"box":{"x":116,"y":583,"width":768,"height":12}},{"id":"2795ee49-08d8-4d69-8441-d8fb6f7e9728","block_type":"box","text":"forwards”) and currency swaps, purchase and sell currency options, currency futures and related","page_number":428,"box":{"x":116,"y":599,"width":723,"height":12}},{"id":"4a6aef89-4969-48a4-a8f3-c450486a7dc7","block_type":"box","text":"options thereon (collectively, “Currency Instruments”) for purposes of hedging against the decline in the","page_number":428,"box":{"x":116,"y":614,"width":772,"height":12}},{"id":"cd96cd7e-ad10-4441-854a-3063b379a0b8","block_type":"box","text":"value of currencies in which its portfolio holdings are denominated against the U.S. dollar or, with","page_number":428,"box":{"x":116,"y":630,"width":725,"height":12}},{"id":"42b83558-cfbc-4bc7-92e5-6b61b8041f20","block_type":"box","text":"respect to certain Funds, to seek to enhance returns.","page_number":428,"box":{"x":117,"y":645,"width":397,"height":12}},{"id":"3c654fa5-4c77-400f-a820-ae005d63186c","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities","page_number":428,"box":{"x":116,"y":676,"width":729,"height":12}},{"id":"cb35ddd7-5500-4fbb-8479-f83b083edea3","block_type":"box","text":"owned by a Fund, sold by a Fund but not","page_number":428,"box":{"x":116,"y":692,"width":305,"height":12}},{"id":"7a13919f-fde7-436e-8f24-50985831f170","block_type":"box","text":"yet delivered, or committed or anticipated to be purchased by","page_number":428,"box":{"x":426,"y":692,"width":455,"height":12}},{"id":"c3a5e994-3444-4f8e-bd4a-e38d3a59f08c","block_type":"box","text":"a Fund. As an illustration, a Fund may use such techniques to hedge the stated value in U.S. dollars of","page_number":428,"box":{"x":116,"y":707,"width":764,"height":12}},{"id":"9de94337-da67-4023-a9a2-1ca1d33d94d9","block_type":"box","text":"an investment in a yen-denominated security. For example, the Fund may purchase a foreign currency","page_number":428,"box":{"x":116,"y":723,"width":762,"height":12}},{"id":"b84ad887-67e8-4086-8c5d-618761ff84c9","block_type":"box","text":"put option enabling it to sell a specified amount of yen","page_number":428,"box":{"x":117,"y":738,"width":398,"height":12}},{"id":"40dac6a2-192d-409b-b49f-8245179ac1dd","block_type":"box","text":"for dollars at a specified price by a future date.","page_number":428,"box":{"x":521,"y":738,"width":344,"height":12}},{"id":"49b67c38-ed99-4870-86cd-61d56df4c943","block_type":"box","text":"To the extent the hedge is successful, a loss in the value of the yen relative to the dollar will tend to be","page_number":428,"box":{"x":116,"y":754,"width":759,"height":12}},{"id":"f6b038e5-99a0-4a66-9735-fd117ef777a0","block_type":"box","text":"offset by an increase in the value of the put option. To offset, in whole or in part, the cost of acquiring","page_number":428,"box":{"x":116,"y":769,"width":748,"height":12}},{"id":"7ac80424-2b27-45b5-a4ae-d282c01fe8a8","block_type":"box","text":"such a put option, the Fund may also sell a call option which, if exercised, requires it to sell a specified","page_number":428,"box":{"x":116,"y":785,"width":758,"height":12}},{"id":"6ed24d0e-b2a6-4787-881b-aecd10163fdf","block_type":"box","text":"amount of yen for dollars at a specified price by a future date (a technique called a “straddle”). By","page_number":428,"box":{"x":116,"y":800,"width":722,"height":12}},{"id":"968bceb8-fe47-4a3b-857f-e1dbf02cd02c","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the opportunity to profit without limit from","page_number":428,"box":{"x":116,"y":816,"width":761,"height":12}},{"id":"13853248-cf3b-424e-b1e9-04068f861ecf","block_type":"box","text":"increases in the relative value of the yen to the dollar. “Straddles” of the type that may be used by a","page_number":428,"box":{"x":117,"y":831,"width":742,"height":12}},{"id":"6257c337-4e9d-491a-a661-5b2419e5288c","block_type":"box","text":"Fund are considered hedging transactions. Certain Funds have a fundamental investment restriction","page_number":428,"box":{"x":117,"y":847,"width":749,"height":12}},{"id":"92e7e40f-557d-4874-8d7b-9b3c8d10b5d4","block_type":"box","text":"that restricts currency option strategies.","page_number":428,"box":{"x":116,"y":862,"width":298,"height":12}},{"id":"94ca736e-fba4-48c8-a912-29b7f5d90e25","block_type":"box","text":"II-30","page_number":428,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"1c3204ed-e315-403c-93ab-7c76ab9afaaf","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":428,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"18ae8e38-efdb-4e7d-9ce0-9e26770ece82","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation","page_number":429,"box":{"x":117,"y":87,"width":737,"height":12}},{"id":"347043c6-850e-4cd1-a0f9-d13249114bdd","block_type":"box","text":"risk. A Fund’s use of Currency Instruments to effect hedging strategies is intended to reduce the","page_number":429,"box":{"x":117,"y":102,"width":718,"height":13}},{"id":"14230fbe-ecb6-4b02-943e-b9ac140468c2","block_type":"box","text":"volatility of the NAV of the Fund’s shares; however, the use of such hedging strategies will not prevent","page_number":429,"box":{"x":116,"y":118,"width":763,"height":12}},{"id":"bfc8d1c4-74c5-4a6d-914c-f28fa779b85d","block_type":"box","text":"the NAV of the Fund’s shares from fluctuating. Moreover, although Currency Instruments will be used","page_number":429,"box":{"x":116,"y":134,"width":757,"height":12}},{"id":"b74e8e5b-0ddb-41b1-ac4f-45b28b6f8e88","block_type":"box","text":"with the intention of hedging against adverse currency movements, transactions in Currency","page_number":429,"box":{"x":116,"y":149,"width":689,"height":12}},{"id":"0209e85f-667a-4bc6-9d05-c246e08ef864","block_type":"box","text":"Instruments involve the risk that anticipated currency movements will not be accurately predicted and","page_number":429,"box":{"x":117,"y":165,"width":755,"height":12}},{"id":"bdae682a-d88f-416f-a00a-14c3112c1044","block_type":"box","text":"that the Fund’s hedging strategies will be ineffective. To the extent that a Fund hedges against","page_number":429,"box":{"x":116,"y":180,"width":706,"height":12}},{"id":"528055fc-5197-4808-8189-f7a21b575842","block_type":"box","text":"anticipated currency movements that do not occur, the Fund may realize losses and decrease its total","page_number":429,"box":{"x":116,"y":196,"width":761,"height":12}},{"id":"d57be616-e7c5-477b-81fc-6f074c4cc09c","block_type":"box","text":"return. Furthermore, a Fund will only engage in hedging activities from time to time and may not be","page_number":429,"box":{"x":117,"y":211,"width":738,"height":12}},{"id":"7fe3b7b5-04f8-4cfb-8f90-fcd7c409ca6a","block_type":"box","text":"engaging in hedging activities when movements in currency exchange rates actually occur.","page_number":429,"box":{"x":116,"y":227,"width":681,"height":12}},{"id":"86f9cd64-4d0a-4118-b96e-a650ad3d6758","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign","page_number":429,"box":{"x":117,"y":258,"width":752,"height":12}},{"id":"dcfd9602-c518-4cc5-b1d3-f90b48310f56","block_type":"box","text":"or domestic bank, or foreign or domestic securities dealer, to make or take future delivery of a specified","page_number":429,"box":{"x":116,"y":273,"width":772,"height":12}},{"id":"2ac98d44-5fdd-4980-9276-a0988261f17b","block_type":"box","text":"amount of a particular currency. There are no limitations on daily price moves in such forward","page_number":429,"box":{"x":116,"y":289,"width":699,"height":12}},{"id":"121c3f8e-9fee-4d50-a7f3-d0697f8bc033","block_type":"box","text":"contracts, and banks and dealers are not required to continue to make markets in such contracts.","page_number":429,"box":{"x":116,"y":304,"width":728,"height":12}},{"id":"44c4957d-2b10-43a5-8460-417b6d3039ea","block_type":"box","text":"There have been periods during which certain banks or dealers have refused to quote prices for such","page_number":429,"box":{"x":116,"y":320,"width":757,"height":12}},{"id":"92df3531-2d7e-4d35-818f-75aa5b4da9ff","block_type":"box","text":"forward contracts or have quoted prices with an unusually wide spread between the price at which the","page_number":429,"box":{"x":116,"y":335,"width":761,"height":12}},{"id":"cb7bdefe-ac39-4ab4-b22b-dfc920d43e78","block_type":"box","text":"bank or dealer is prepared to buy and that at which it is prepared to sell. Governmental imposition of","page_number":429,"box":{"x":117,"y":351,"width":747,"height":12}},{"id":"a79f1557-30eb-48c9-a5e8-117af710f1ea","block_type":"box","text":"currency controls might limit any such forward contract trading. With respect to its trading of forward","page_number":429,"box":{"x":116,"y":366,"width":746,"height":12}},{"id":"4d18c018-833f-4007-9bc4-e2ed322125e3","block_type":"box","text":"contracts, if any, a Fund will be subject to counterparty risk. Any such failure to perform by a","page_number":429,"box":{"x":116,"y":382,"width":689,"height":12}},{"id":"880e4e8e-b70e-4926-a0f6-9068e17bffda","block_type":"box","text":"counterparty would deprive the Fund of any profit potential or force the Fund to cover its commitments","page_number":429,"box":{"x":116,"y":397,"width":762,"height":12}},{"id":"5622106c-a6b0-4b16-897d-65857600c5e3","block_type":"box","text":"for resale, if any, at the then market price and could result in a loss to the Fund.","page_number":429,"box":{"x":116,"y":413,"width":595,"height":12}},{"id":"5e0f9518-5c56-48d1-a55b-0022cba86758","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if","page_number":429,"box":{"x":117,"y":444,"width":709,"height":12}},{"id":"c97b10f2-5613-4f88-b646-c41c00b5321d","block_type":"box","text":"correctly anticipated, in the event that (i) the currency exchange rate movement is so generally","page_number":429,"box":{"x":116,"y":459,"width":707,"height":12}},{"id":"b3f08f82-8591-494e-a700-17b7459dfb62","block_type":"box","text":"anticipated that the Fund is not able to enter into a hedging transaction at an effective price, or (ii) the","page_number":429,"box":{"x":116,"y":475,"width":757,"height":12}},{"id":"473652c6-99eb-474f-a35c-ca7506076b36","block_type":"box","text":"currency exchange rate movement relates to a market with respect to which Currency Instruments are","page_number":429,"box":{"x":116,"y":490,"width":764,"height":12}},{"id":"727c3e8c-7f2f-47f4-b34f-e05d34f83245","block_type":"box","text":"not available and it is not possible to engage in effective foreign currency hedging. The cost to a Fund","page_number":429,"box":{"x":117,"y":506,"width":759,"height":12}},{"id":"6f603f18-9bcb-42e7-b9a3-ede28f038086","block_type":"box","text":"of engaging in foreign currency transactions varies with such factors as the currencies involved, the","page_number":429,"box":{"x":116,"y":521,"width":743,"height":12}},{"id":"e93e7aa9-07ac-450c-9f56-9315b9183003","block_type":"box","text":"length of the contract period and the market conditions then prevailing. Since transactions in foreign","page_number":429,"box":{"x":117,"y":537,"width":744,"height":12}},{"id":"627e65b6-e377-4cfd-bcc5-18de1f1e0060","block_type":"box","text":"currency exchange usually are conducted on a principal basis, no fees or commissions are involved.","page_number":429,"box":{"x":116,"y":552,"width":750,"height":12}},{"id":"d6d57f0c-b373-487c-a69f-6bac6f3e0dab","block_type":"box","text":"A Fund will not hedge a currency in excess of the aggregate market value of the securities that it owns","page_number":429,"box":{"x":116,"y":583,"width":765,"height":12}},{"id":"6a1b3104-5a89-479a-b5a0-1a1327b0c88d","block_type":"box","text":"(including receivables for unsettled securities sales), or has committed to purchase or anticipates","page_number":429,"box":{"x":117,"y":599,"width":724,"height":12}},{"id":"1328f0a2-86bf-441e-ac1d-f67510eaaefc","block_type":"box","text":"purchasing, which are denominated in such currency.","page_number":429,"box":{"x":117,"y":614,"width":401,"height":12}},{"id":"0469fbeb-0fc6-4a64-aba1-db66e1b2cdf9","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":429,"box":{"x":117,"y":645,"width":266,"height":12}},{"id":"7cfee3ca-7eab-4331-aed0-f6b5c649c4c0","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified","page_number":429,"box":{"x":384,"y":645,"width":459,"height":12}},{"id":"361d7b1c-ade2-4049-8763-3d047c288680","block_type":"box","text":"amount of a specified currency or multinational curr","page_number":429,"box":{"x":116,"y":661,"width":373,"height":12}},{"id":"560ae8ff-d5b7-4876-b871-f96ad8c44f0c","block_type":"box","text":"ency unit at a specified price and specified future","page_number":429,"box":{"x":489,"y":661,"width":355,"height":12}},{"id":"b7046d7b-e4eb-4f80-8217-e36ca567bb54","block_type":"box","text":"date. Spot foreign exchange transactions are similar","page_number":429,"box":{"x":116,"y":676,"width":380,"height":12}},{"id":"ad84adf2-4f04-4cc9-8fec-a727f45dbd67","block_type":"box","text":"but are settled in the current, or “spot”, market. A","page_number":429,"box":{"x":501,"y":676,"width":354,"height":12}},{"id":"0b6364d9-5254-45ca-9260-adf26757b996","block_type":"box","text":"Fund will enter into foreign exchange transactions for pur","page_number":429,"box":{"x":117,"y":692,"width":413,"height":12}},{"id":"b3804d19-0483-44a1-8374-d392f7fb59e3","block_type":"box","text":"poses of hedging either a specific transaction or","page_number":429,"box":{"x":531,"y":692,"width":347,"height":12}},{"id":"f8694d63-6c4f-49f4-818e-820aafe5f610","block_type":"box","text":"a portfolio position, or, with respect to certain Funds,","page_number":429,"box":{"x":116,"y":707,"width":379,"height":12}},{"id":"c2eabc7f-3335-4d63-89e2-2019f3953cc8","block_type":"box","text":"to seek to enhance returns. FX forwards involve","page_number":429,"box":{"x":501,"y":707,"width":349,"height":10}},{"id":"56474c52-595d-41e0-84fd-df8d8ad00987","block_type":"box","text":"substantial currency risk, credit risk and liquidity","page_number":429,"box":{"x":116,"y":723,"width":346,"height":12}},{"id":"813da26c-9819-45c2-9677-f7f09478b139","block_type":"box","text":"risk. A Fund may enter into a foreign exchange","page_number":429,"box":{"x":468,"y":723,"width":340,"height":12}},{"id":"b9097576-40cf-4dbe-a9e9-5f34d5b5778c","block_type":"box","text":"transaction for purposes of hedging a specific trans","page_number":429,"box":{"x":116,"y":738,"width":371,"height":12}},{"id":"9e2b2f2f-b466-4b00-9128-030934d0cfe0","block_type":"box","text":"action by, for example, purchasing a currency needed","page_number":429,"box":{"x":488,"y":738,"width":391,"height":12}},{"id":"122f72f2-bde1-4a4c-a364-d42554119c63","block_type":"box","text":"to settle a security transaction or selling a currency in which the Fund has received or anticipates","page_number":429,"box":{"x":116,"y":754,"width":702,"height":12}},{"id":"85da7f3f-c184-49cc-9f87-63f2e07177ed","block_type":"box","text":"receiving a dividend or distribution. A Fund may enter","page_number":429,"box":{"x":117,"y":769,"width":388,"height":12}},{"id":"707984e7-8cff-4470-abf0-2fe704973968","block_type":"box","text":"into a foreign exchange transaction for purposes of","page_number":429,"box":{"x":510,"y":769,"width":370,"height":12}},{"id":"c6ebe86a-5112-43a2-afc3-f2560c660e56","block_type":"box","text":"hedging a portfolio position by selling forward a currency in which a portfolio position of the Fund is","page_number":429,"box":{"x":117,"y":785,"width":714,"height":12}},{"id":"9386f574-8b51-4e05-9bb6-c88b1c2c933e","block_type":"box","text":"denominated or by purchasing a currency in which t","page_number":429,"box":{"x":116,"y":800,"width":376,"height":12}},{"id":"d1a65bd9-9c19-445e-a6b8-50ddbd51de8b","block_type":"box","text":"he Fund anticipates acquiring a portfolio position in","page_number":429,"box":{"x":493,"y":800,"width":368,"height":12}},{"id":"6e8a71f5-274e-42dd-8edf-530172338149","block_type":"box","text":"the near future. A Fund may also hedge a currency by entering into a transaction in a Currency","page_number":429,"box":{"x":116,"y":816,"width":690,"height":12}},{"id":"6389081e-ff82-4c81-804c-69ecc34ccadb","block_type":"box","text":"Instrument denominated in a currency other","page_number":429,"box":{"x":117,"y":831,"width":322,"height":12}},{"id":"c5ca491d-7b49-48c8-b2b7-65ca37775a5c","block_type":"box","text":"than the currency being hedged (a “cross-hedge”). A Fund","page_number":429,"box":{"x":439,"y":831,"width":429,"height":12}},{"id":"551e7652-2a26-4eb8-abf4-1415ff2ee206","block_type":"box","text":"will only enter into a cross-hedge if the Manager believe","page_number":429,"box":{"x":116,"y":847,"width":405,"height":12}},{"id":"bbd71719-4c07-4533-974c-519c9495936d","block_type":"box","text":"s that (i) there is a demonstrably high correlation","page_number":429,"box":{"x":522,"y":847,"width":356,"height":12}},{"id":"0f5a2500-d8b1-454d-9428-385d86801ee9","block_type":"box","text":"between the currency in which the cross-","page_number":429,"box":{"x":117,"y":862,"width":297,"height":12}},{"id":"c6fb2d6b-d61c-435f-8796-d636ede9130e","block_type":"box","text":"hedge is denominated and the currency being hedged, and","page_number":429,"box":{"x":415,"y":862,"width":434,"height":12}},{"id":"f36fe7df-5e09-4915-bb64-06758bcbe078","block_type":"box","text":"(ii) executing a cross-hedge through the curren","page_number":429,"box":{"x":117,"y":878,"width":339,"height":12}},{"id":"823bd023-cc47-4aed-965e-f17d77e646e8","block_type":"box","text":"cy in which the cross-hedge is denominated will be","page_number":429,"box":{"x":457,"y":878,"width":374,"height":12}},{"id":"96b7b2aa-770a-45dd-9231-f11af971d27f","block_type":"box","text":"II-31","page_number":429,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"a3252a15-1ed0-4690-9a00-9f2f93ef8598","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":429,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"6fa8e88b-5869-4a61-9fb0-facfd25fb2c2","block_type":"box","text":"significantly more cost-effective or provide substant","page_number":430,"box":{"x":116,"y":87,"width":373,"height":12}},{"id":"0f7fb2dc-3d05-4c0f-86db-e929d777a14f","block_type":"box","text":"ially greater liquidity than executing a similar hedging","page_number":430,"box":{"x":490,"y":87,"width":388,"height":12}},{"id":"203b578b-b131-4e90-821d-254ba2ec9268","block_type":"box","text":"transaction by means of the currency being hedged.","page_number":430,"box":{"x":116,"y":102,"width":383,"height":13}},{"id":"67c1fbe4-8139-4abe-8b73-507e2a16396c","block_type":"box","text":"A Fund may also engage in proxy hedging transactions to reduce the effect of currency fluctuations on","page_number":430,"box":{"x":116,"y":134,"width":765,"height":12}},{"id":"cf6ff5bb-eb40-4bfe-b26d-881e55d0afcf","block_type":"box","text":"the value of existing or anticipated holdings of portfolio securities. Proxy hedging is often used when","page_number":430,"box":{"x":116,"y":149,"width":747,"height":12}},{"id":"4861f168-985c-47de-89ce-725529ce1f56","block_type":"box","text":"the currency to which the Fund is exposed is difficult to hedge, or to hedge against the U.S. dollar.","page_number":430,"box":{"x":116,"y":165,"width":733,"height":12}},{"id":"115242dc-7e3d-4a88-a6f6-33905f6c2325","block_type":"box","text":"Proxy hedging entails entering into a forward contract to sell a currency whose changes in value are","page_number":430,"box":{"x":117,"y":180,"width":746,"height":12}},{"id":"3416515e-43af-4154-a012-c81dc6daf199","block_type":"box","text":"generally considered to be linked to a currency or currencies in which some or all of the Fund’s","page_number":430,"box":{"x":116,"y":196,"width":709,"height":12}},{"id":"464ad440-8150-44eb-9f0f-9dbf6bf77a11","block_type":"box","text":"securities are, or are expected to be, denominated, and to buy U.S. dollars. Proxy hedging involves","page_number":430,"box":{"x":116,"y":211,"width":742,"height":12}},{"id":"b027b274-b622-481c-8b4b-2299afa25229","block_type":"box","text":"some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":430,"box":{"x":116,"y":227,"width":742,"height":12}},{"id":"04dfd5ba-7894-4154-b138-a4b1c32addb4","block_type":"box","text":"transactions can result in losses to the Fund if the currency being hedged fluctuates in value to a","page_number":430,"box":{"x":116,"y":242,"width":722,"height":12}},{"id":"6294ffff-68ec-406f-883e-3d3d8ba6915f","block_type":"box","text":"degree or in a direction that is not anticipated. In addition, there is the risk that the perceived linkage","page_number":430,"box":{"x":116,"y":258,"width":748,"height":12}},{"id":"612fd227-71fe-4967-bd1c-6f9b001a0ec1","block_type":"box","text":"between various currencies may not be present, including during the particular time that a Fund is","page_number":430,"box":{"x":117,"y":273,"width":729,"height":12}},{"id":"cd49e393-2252-40c3-9436-4de01b16a7fe","block_type":"box","text":"engaging in proxy hedging.","page_number":430,"box":{"x":116,"y":289,"width":206,"height":12}},{"id":"ff6914fb-5eac-4b87-a634-0867af7b75d8","block_type":"box","text":"A Fund may also cross-hedge currencies by entering into forward contracts to sell one or more","page_number":430,"box":{"x":116,"y":320,"width":708,"height":12}},{"id":"cb55ed46-802a-4c1b-a853-9ef0aeb5b564","block_type":"box","text":"currencies that are expected to decline in value relative to other currencies to which the Fund has or in","page_number":430,"box":{"x":116,"y":335,"width":766,"height":12}},{"id":"243835c1-7c3f-4be6-b1ce-487cd7a1ec20","block_type":"box","text":"which the Fund expects to have portfolio exposure. For example, a Fund may hold both Canadian","page_number":430,"box":{"x":116,"y":351,"width":731,"height":12}},{"id":"e0134b1b-641f-49be-8f1f-0347a88a03b9","block_type":"box","text":"government bonds and Japanese government bonds, and the Manager or sub-adviser may believe","page_number":430,"box":{"x":116,"y":366,"width":741,"height":12}},{"id":"1ce01993-f9dc-4217-9fe4-e6473da96dd7","block_type":"box","text":"that Canadian dollars will deteriorate against Japanese yen. The Fund would sell Canadian dollars to","page_number":430,"box":{"x":116,"y":382,"width":754,"height":12}},{"id":"b94400a0-c2c9-4d14-b86d-5393d0a912d7","block_type":"box","text":"reduce its exposure to that currency and buy Japanese yen. This strategy would be a hedge against a","page_number":430,"box":{"x":117,"y":397,"width":761,"height":12}},{"id":"d25feb14-a8f6-4829-ab3c-99c2ec0b459f","block_type":"box","text":"decline in the value of Canadian dollars, although it would expose the Fund to declines in the value of","page_number":430,"box":{"x":116,"y":413,"width":758,"height":12}},{"id":"1ae70cca-8def-4d95-9efc-0290a7abe4da","block_type":"box","text":"the Japanese yen relative to the U.S. dollar.","page_number":430,"box":{"x":116,"y":428,"width":331,"height":12}},{"id":"b909ec40-5830-456f-a0df-ee2eb6cc718f","block_type":"box","text":"Some of the forward non-U.S. currency contracts entered into by the Funds are classified as","page_number":430,"box":{"x":116,"y":459,"width":690,"height":12}},{"id":"c2faef87-8083-4283-a744-8a4285e68358","block_type":"box","text":"non-deliverable forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be","page_number":430,"box":{"x":117,"y":475,"width":748,"height":12}},{"id":"6bb998c8-90b2-4343-8303-a51ae5fdd1f4","block_type":"box","text":"thinly traded or are denominated in non-convertible foreign currency, where the profit or loss at the","page_number":430,"box":{"x":116,"y":490,"width":736,"height":12}},{"id":"cda19624-0207-4818-94b1-448f0e5455ed","block_type":"box","text":"time at the settlement date is calculated by taking the difference between the agreed upon exchange","page_number":430,"box":{"x":116,"y":506,"width":752,"height":12}},{"id":"e7146329-b44d-486a-8d65-29ce57c77d82","block_type":"box","text":"rate and the spot rate at the time of settlement, for an agreed upon notional amount of funds. All NDFs","page_number":430,"box":{"x":117,"y":521,"width":765,"height":12}},{"id":"e43b6c49-a2fc-4c4c-803e-73abe0b456c8","block_type":"box","text":"have a fixing date and a settlement date. The fixing date is the date at which the difference between","page_number":430,"box":{"x":117,"y":537,"width":746,"height":12}},{"id":"894cf890-9d9c-4c5e-bd4b-dd95984ddfb9","block_type":"box","text":"the prevailing market exchange rate and the agreed upon exchange rate is calculated. The settlement","page_number":430,"box":{"x":116,"y":552,"width":761,"height":12}},{"id":"9bfeb034-e21a-4b2c-9e64-dec42773054a","block_type":"box","text":"date is the date by which the payment of the difference is due to the party receiving payment. NDFs","page_number":430,"box":{"x":116,"y":568,"width":745,"height":12}},{"id":"303f5159-c97b-4df5-8c7d-0276e841d7f0","block_type":"box","text":"are commonly quoted for time periods of one month up to two years, and are normally quoted and","page_number":430,"box":{"x":116,"y":583,"width":733,"height":12}},{"id":"7c25e1d1-f7b6-4982-aaec-28800e7a34d5","block_type":"box","text":"settled in U.S. dollars. They are often used to gain exposure to and/or hedge exposure to foreign","page_number":430,"box":{"x":116,"y":599,"width":723,"height":12}},{"id":"45c07a20-aaa6-4fbd-97db-e55da92df189","block_type":"box","text":"currencies that are not internationally traded.","page_number":430,"box":{"x":116,"y":614,"width":337,"height":12}},{"id":"61c310ca-fc85-479e-839c-6d1189e75e69","block_type":"box","text":"Currency Futures.","page_number":430,"box":{"x":117,"y":645,"width":132,"height":12}},{"id":"83753c08-f44c-4000-b99e-a62c63c85ae6","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a","page_number":430,"box":{"x":250,"y":645,"width":626,"height":12}},{"id":"abfb84d9-cf88-4589-ad0d-2797dd7755f8","block_type":"box","text":"currency through use of currency futures or options on currency futures. Currency futures are similar to","page_number":430,"box":{"x":116,"y":661,"width":764,"height":12}},{"id":"21252a11-30b3-48fd-b8c3-44be8d10173b","block_type":"box","text":"forward foreign exchange transactions except that futures are standardized, exchange-traded contracts","page_number":430,"box":{"x":116,"y":676,"width":766,"height":12}},{"id":"1302c725-093c-4017-9de3-1c1db5c4c083","block_type":"box","text":"while forward foreign exchange transactions are traded in the OTC market. Currency futures involve","page_number":430,"box":{"x":116,"y":692,"width":742,"height":12}},{"id":"8c7caa4a-3542-4962-b0fe-d2231b77b992","block_type":"box","text":"substantial currency risk as well as the risks discussed above in “— Futures.”","page_number":430,"box":{"x":116,"y":707,"width":572,"height":12}},{"id":"691c7fec-7af5-462d-bdc3-d40b54478eed","block_type":"box","text":"Currency Options.","page_number":430,"box":{"x":117,"y":738,"width":133,"height":12}},{"id":"ea368b9b-997b-47d2-92aa-f26ca4f4907a","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a","page_number":430,"box":{"x":256,"y":738,"width":615,"height":12}},{"id":"8f1156e5-3852-44f1-b96a-e720448ac22f","block_type":"box","text":"currency through the use of currency options. Certain Funds have fundamental investment restrictions","page_number":430,"box":{"x":116,"y":754,"width":758,"height":12}},{"id":"0e901789-59a7-420b-ab19-90e6a0578846","block_type":"box","text":"that permit the purchase of currency options, but prohibit the writing of currency options. Currency","page_number":430,"box":{"x":116,"y":769,"width":727,"height":12}},{"id":"d7ff62d4-9b53-4ea0-8171-ab1f4fcfe3c9","block_type":"box","text":"options are similar to options on securities. For example, in consideration for an option premium the","page_number":430,"box":{"x":116,"y":785,"width":739,"height":12}},{"id":"deb2d253-3e4d-4b94-9ec2-c5e7bd744b7b","block_type":"box","text":"writer of a currency option is obligated to sell (in the case of a call option) or purchase (in the case of a","page_number":430,"box":{"x":116,"y":800,"width":760,"height":12}},{"id":"fa0c7b43-50ab-41c2-96ca-e7025828c6d0","block_type":"box","text":"put option) a specified amount of a specified currency on or before the expiration date for a specified","page_number":430,"box":{"x":117,"y":816,"width":744,"height":12}},{"id":"5cecc2de-ad2b-4a4f-ad86-79bab5cb5df3","block_type":"box","text":"amount of another currency. A Fund may engage in transactions in options on currencies either on","page_number":430,"box":{"x":116,"y":831,"width":737,"height":12}},{"id":"2cd9fcf2-0ef0-4f63-98df-091dd8e6d37c","block_type":"box","text":"exchanges or OTC markets. Such transactions in options may include exotic options on currencies,","page_number":430,"box":{"x":116,"y":847,"width":743,"height":12}},{"id":"0143f22b-b20a-4079-a2dd-23b883d055e9","block_type":"box","text":"which are typically traded in OTC markets and have additional features that result in different payment","page_number":430,"box":{"x":116,"y":862,"width":763,"height":12}},{"id":"35ab7862-954d-4470-af8b-bc05eeacec40","block_type":"box","text":"structures and/or expirations. Where a Fund is permitted to write currency options, it may write covered","page_number":430,"box":{"x":116,"y":878,"width":771,"height":12}},{"id":"f114cbc6-5882-4895-9d2e-189530f88c7d","block_type":"box","text":"II-32","page_number":430,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"8e0ab48e-dce5-4d97-898c-310e8d816cca","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":430,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4445ba92-03f4-4121-9712-fe170ebb3670","block_type":"box","text":"call options on up to 100% of the currencies in its portfolio. See “— Options” above. Currency options","page_number":431,"box":{"x":116,"y":87,"width":757,"height":12}},{"id":"31c78555-6a3d-4b6e-944e-30a96cf227b5","block_type":"box","text":"involve substantial currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":431,"box":{"x":117,"y":103,"width":651,"height":12}},{"id":"e522afd6-9593-47aa-84f7-22d33df83725","block_type":"box","text":"Currency Swaps.","page_number":431,"box":{"x":117,"y":134,"width":131,"height":12}},{"id":"49c5bb6f-64f9-48ed-a8ab-2dc4b79bf22b","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency","page_number":431,"box":{"x":248,"y":134,"width":557,"height":12}},{"id":"0b2b046b-c2b0-44e3-bf40-5d0ab83a65e3","block_type":"box","text":"fluctuations or to hedge portfolio positions. Currency swaps are transactions in which one currency is","page_number":431,"box":{"x":116,"y":149,"width":754,"height":12}},{"id":"4569d312-2bd6-4b1e-b280-3d56cba4c70c","block_type":"box","text":"simultaneously bought for a second currency on a spot basis and sold for the second currency on a","page_number":431,"box":{"x":116,"y":165,"width":743,"height":12}},{"id":"ce9ed97e-954d-445b-a1ac-6093ab76c555","block_type":"box","text":"forward basis. Currency swaps involve the exchange of the rights of a Fund and another party to make","page_number":431,"box":{"x":116,"y":180,"width":767,"height":12}},{"id":"82315fee-a2be-475d-a15f-2853beff39b4","block_type":"box","text":"or receive payments in specified currencies, and typically require the delivery of the entire principal","page_number":431,"box":{"x":116,"y":196,"width":738,"height":12}},{"id":"2f3f1775-b67f-408b-9837-2a7ab90ee520","block_type":"box","text":"value of one designated currency in exchange for the other designated currency. As a result, the entire","page_number":431,"box":{"x":116,"y":211,"width":768,"height":12}},{"id":"d748d502-ca74-4472-8684-5c834184bf2d","block_type":"box","text":"principal value of a currency swap is subject to the risk that the other party to the swap will default on","page_number":431,"box":{"x":117,"y":227,"width":753,"height":12}},{"id":"22751b32-c66a-4bee-a725-9181e632a14f","block_type":"box","text":"its contractual delivery obligations.","page_number":431,"box":{"x":117,"y":242,"width":260,"height":12}},{"id":"5db25751-6873-4594-bf08-0cf21c290e90","block_type":"box","text":"Digital Asset Exposure.","page_number":431,"box":{"x":116,"y":273,"width":192,"height":12}},{"id":"15a9bf72-7d44-4395-bfc4-36f9e333b72c","block_type":"box","text":"Digital assets, such as bitcoin and ether, are created and transmitted through","page_number":431,"box":{"x":310,"y":273,"width":577,"height":12}},{"id":"4ae68a00-c36f-4e86-9143-137f6f386898","block_type":"box","text":"the operations of peer-to-peer networks of computers, known as nodes, that operate on cryptographic","page_number":431,"box":{"x":116,"y":289,"width":761,"height":12}},{"id":"4fd054c9-fc81-4412-afbe-ea21cfb339d6","block_type":"box","text":"computer-code based logic, called a protocol. Digital assets are part of a new and rapidly changing","page_number":431,"box":{"x":116,"y":304,"width":739,"height":12}},{"id":"e5677d56-c70a-4bc9-aad6-39e103c69a71","block_type":"box","text":"industry, and the further development of digital asset networks is subject to a variety of factors that are","page_number":431,"box":{"x":117,"y":320,"width":765,"height":12}},{"id":"71eaa23c-a64d-438c-ae96-62d06e757ef3","block_type":"box","text":"difficult to evaluate. Digital assets are relatively new assets with limited histories.","page_number":431,"box":{"x":116,"y":335,"width":602,"height":12}},{"id":"7c269304-0831-45a7-a5ad-b004aacb393b","block_type":"box","text":"Risks Related to Digital Assets.","page_number":431,"box":{"x":116,"y":366,"width":238,"height":12}},{"id":"4b1c9818-001f-46bb-80d5-11d52af613f4","block_type":"box","text":"Digital assets were only introduced within the past 15 years, and the","page_number":431,"box":{"x":355,"y":366,"width":511,"height":12}},{"id":"4d1f5410-68f5-4643-8b1e-8237c274a485","block_type":"box","text":"value of such digital assets is subject to a number of factors relating to the capabilities and","page_number":431,"box":{"x":116,"y":382,"width":676,"height":12}},{"id":"a9a17aef-f049-493d-89a6-44cadf3f1806","block_type":"box","text":"development of blockchain technologies, such as the recentness of their development, their","page_number":431,"box":{"x":116,"y":397,"width":685,"height":12}},{"id":"5b280563-5235-4bd0-bb00-3b42e8194f8d","block_type":"box","text":"dependence on the internet and other technologies, their dependence on the role played by users,","page_number":431,"box":{"x":116,"y":413,"width":735,"height":12}},{"id":"4c4d1e4c-e7ca-4ed5-802c-ca7ceff9e706","block_type":"box","text":"developers, miners and validators and the potential for malicious activity. Given the recentness of the","page_number":431,"box":{"x":116,"y":428,"width":756,"height":12}},{"id":"658ecbf1-d1d2-4656-ab10-e6b30d9ec6b1","block_type":"box","text":"development of digital asset networks, digital assets may not function as intended and parties may be","page_number":431,"box":{"x":116,"y":444,"width":760,"height":12}},{"id":"f65229ab-b471-456a-a88b-569f9180d936","block_type":"box","text":"unwilling to use digital assets, which would dampen the growth, if any, of digital asset networks.","page_number":431,"box":{"x":117,"y":459,"width":713,"height":12}},{"id":"c7556988-a1c8-4f3e-9db1-5354e373439e","block_type":"box","text":"The trading prices of many digital assets, including bitcoin and ether, have experienced extreme","page_number":431,"box":{"x":116,"y":490,"width":718,"height":12}},{"id":"1ce6f9d0-b069-49fd-9662-7775eef8d2f4","block_type":"box","text":"volatility in recent periods and may continue to do so. Extreme volatility in the future, including further","page_number":431,"box":{"x":116,"y":506,"width":755,"height":12}},{"id":"228c62c9-4ce6-48d9-89bc-d8fc49e81069","block_type":"box","text":"declines in the trading prices of bitcoin and ether, could have a material adverse effect on the value of","page_number":431,"box":{"x":116,"y":521,"width":760,"height":12}},{"id":"8cbc1a9b-1946-4d05-9cf6-bae7c7ef10c9","block_type":"box","text":"such digital asset investments. The value of digital assets is subject to a number of factors relating to","page_number":431,"box":{"x":116,"y":537,"width":754,"height":12}},{"id":"ec1a1f92-ea76-4b1f-89f6-3d72defd83f7","block_type":"box","text":"the their fundamental investment characteristics, including the fact that digital assets are bearer","page_number":431,"box":{"x":116,"y":552,"width":714,"height":12}},{"id":"c5b9e141-483d-4dad-99a5-5ad395009dc1","block_type":"box","text":"instruments and loss, theft, destruction, or compromise of the associated private keys could result in","page_number":431,"box":{"x":117,"y":568,"width":748,"height":12}},{"id":"428b5377-f560-4fae-81cc-d73758a4502f","block_type":"box","text":"permanent loss of the asset, and the capabilities and development of blockchain technologies such as","page_number":431,"box":{"x":117,"y":583,"width":762,"height":12}},{"id":"068e08c7-de5c-4879-bc0f-dd9da5d29e8a","block_type":"box","text":"the Bitcoin or Ethereum blockchain.","page_number":431,"box":{"x":116,"y":599,"width":269,"height":9}},{"id":"084e3831-0ede-4a3e-b6e6-2b5005c387e8","block_type":"box","text":"The opaque nature of the digital asset market poses asset verification challenges for market","page_number":431,"box":{"x":116,"y":630,"width":688,"height":12}},{"id":"703ee52e-26dc-4874-a6f2-3787ab025c22","block_type":"box","text":"participants, regulators and auditors and gives rise to an increased risk of manipulation and fraud,","page_number":431,"box":{"x":117,"y":645,"width":729,"height":12}},{"id":"71803dab-8ec2-40dc-ab69-a9927a99c3ba","block_type":"box","text":"including the potential for Ponzi schemes, bucket shops and pump and dump schemes. Digital assets","page_number":431,"box":{"x":117,"y":661,"width":753,"height":12}},{"id":"975a369b-7fa1-46e0-9df1-c0c34ac8cb9c","block_type":"box","text":"have in the past been used to facilitate illicit activities. If a digital asset was used to facilitate illicit","page_number":431,"box":{"x":117,"y":676,"width":715,"height":12}},{"id":"8fd86bfb-b3a9-4bc8-9db6-7ec1de5f6921","block_type":"box","text":"activities, businesses that facilitate transactions in such digital assets could be at increased risk of","page_number":431,"box":{"x":116,"y":692,"width":727,"height":12}},{"id":"b88729d3-9831-44d2-be23-9680703ca79c","block_type":"box","text":"potential criminal or civil liability or lawsuits, or of having banking or other services cut off, and such","page_number":431,"box":{"x":117,"y":707,"width":734,"height":12}},{"id":"11a0dbf3-fc4d-484d-b7c5-59398f63b59f","block_type":"box","text":"digital asset could be removed from digital asset platforms. Any of the aforementioned occurrences","page_number":431,"box":{"x":116,"y":723,"width":736,"height":12}},{"id":"cd1494e7-0f67-4828-8bb6-4a2799982e95","block_type":"box","text":"could adversely affect the price of the relevant digital asset, the attractiveness of the respective","page_number":431,"box":{"x":116,"y":738,"width":706,"height":12}},{"id":"93ce7b0a-db61-4b9d-a73e-1f54d7fb4479","block_type":"box","text":"blockchain network and investments in digital assets.","page_number":431,"box":{"x":117,"y":754,"width":392,"height":12}},{"id":"24e768cf-843a-4685-9f42-262506789a38","block_type":"box","text":"If a malicious actor or botnet (a volunteer or hacked collection of computers controlled by networked","page_number":431,"box":{"x":117,"y":785,"width":741,"height":12}},{"id":"22a2479f-b7de-4786-aa0c-9ede5dfbcfbe","block_type":"box","text":"software coordinating the actions of the computers) obtains control of more than 50% of the processing","page_number":431,"box":{"x":116,"y":800,"width":765,"height":12}},{"id":"84731fc3-5849-4a44-920d-6f36d7ae9bed","block_type":"box","text":"power dedicated to mining on the Bitcoin network, it may be able to alter the Bitcoin blockchain on","page_number":431,"box":{"x":117,"y":816,"width":725,"height":12}},{"id":"0851de8d-fb40-4fcb-9628-895a7f016c43","block_type":"box","text":"which transactions in bitcoin rely by constructing fraudulent blocks or preventing certain transactions","page_number":431,"box":{"x":116,"y":831,"width":749,"height":12}},{"id":"de422565-9901-4f77-830e-292af887fddd","block_type":"box","text":"from completing in a timely manner, or at all. The malicious actor or botnet could also control, exclude","page_number":431,"box":{"x":116,"y":847,"width":761,"height":12}},{"id":"5ac34beb-62e0-4600-8bb2-c4f6bf01b984","block_type":"box","text":"or modify the ordering of transactions.","page_number":431,"box":{"x":116,"y":862,"width":287,"height":12}},{"id":"7ccf5eac-2aa6-495b-b849-6ffd03009b61","block_type":"box","text":"II-33","page_number":431,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"761989fc-a641-40d8-947f-b548da9eb0aa","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":431,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"fd74681c-fdd6-4f27-9985-b33003371105","block_type":"box","text":"The Ethereum network is currently vulnerable to several types of attacks, including a:","page_number":432,"box":{"x":116,"y":87,"width":637,"height":12}},{"id":"fd43814e-554f-46a4-bd1f-16c581af779b","block_type":"box","text":"• “>33% attack” where, if a validator or group of validators were to gain control of more than","page_number":432,"box":{"x":159,"y":111,"width":698,"height":12}},{"id":"71afc896-6701-413d-a2bd-4ba26db2a36b","block_type":"box","text":"33% of the total staked ether on the Ethereum network, a malicious actor could temporarily","page_number":432,"box":{"x":184,"y":127,"width":680,"height":12}},{"id":"21eca440-d2f8-41d9-a4a5-c83c31736983","block_type":"box","text":"impede or delay block confirmation or even cause a temporary fork in the blockchain. This is","page_number":432,"box":{"x":184,"y":142,"width":690,"height":12}},{"id":"c2919513-72c1-4b98-8bca-f48a0f5fc1ae","block_type":"box","text":"believed to be temporary, as the Ethereum network’s inactivity leak would be expected to","page_number":432,"box":{"x":184,"y":158,"width":666,"height":12}},{"id":"ebbdbfd0-c15f-4092-84cf-49f0516f4468","block_type":"box","text":"eventually penalize the attacker enough for the chain to finalize again (i.e., the honest majority","page_number":432,"box":{"x":184,"y":173,"width":704,"height":12}},{"id":"37be9b90-a78e-48b7-917a-4b1e9a8e863a","block_type":"box","text":"would be expected to reclaim 2/3rd stake as the attacker’s stake is penalized). However, it is","page_number":432,"box":{"x":183,"y":189,"width":693,"height":12}},{"id":"6e22a3ce-e05e-41f0-8a3a-e0e8c2c154b2","block_type":"box","text":"not believed that with 33% control, a malicious actor could engage in double-spending or","page_number":432,"box":{"x":184,"y":204,"width":663,"height":12}},{"id":"119b802f-1dcc-4dde-b4bf-48e08b925438","block_type":"box","text":"fraudulent block propagation.","page_number":432,"box":{"x":183,"y":220,"width":222,"height":12}},{"id":"23f6a650-47f8-4bf0-add3-1f2e574c9b5e","block_type":"box","text":"• “>50% attack” where, if a validator or group of validators acting in concert were to gain control","page_number":432,"box":{"x":159,"y":244,"width":726,"height":12}},{"id":"5d6841d6-349e-4af2-ab66-6477c71321ca","block_type":"box","text":"of more than 50% of the total staked ether on the Ethereum network, a malicious actor would","page_number":432,"box":{"x":184,"y":259,"width":695,"height":11}},{"id":"cea60b8a-3581-4ed2-a112-45bf98d5cb3c","block_type":"box","text":"be able to gain full control of the Ethereum network and the ability to manipulate future","page_number":432,"box":{"x":184,"y":275,"width":646,"height":12}},{"id":"ba909371-b198-40f9-b4dd-8e55ac06ff0e","block_type":"box","text":"transactions on the blockchain, including censoring transactions, double-spending and","page_number":432,"box":{"x":183,"y":290,"width":646,"height":12}},{"id":"74eea851-cac7-402f-9eb0-c3f85ad21d3c","block_type":"box","text":"fraudulent block propagation, potentially for an extended period or even permanently. In","page_number":432,"box":{"x":183,"y":306,"width":657,"height":12}},{"id":"62e080c3-99f8-4ddd-918c-6ac3accd61b2","block_type":"box","text":"theory, the minority non-attackers might reach social consensus to reject blocks proposed by","page_number":432,"box":{"x":183,"y":321,"width":694,"height":12}},{"id":"30630d82-faeb-4c8d-af7f-1039e033038a","block_type":"box","text":"the malicious majority attacker, reducing the attacker’s ability to engage in malicious activity,","page_number":432,"box":{"x":183,"y":337,"width":690,"height":12}},{"id":"7b1913cd-87f3-4624-bd00-c6dfabcd2300","block_type":"box","text":"but there can be no assurance this would happen or that non-attackers would be able to","page_number":432,"box":{"x":184,"y":352,"width":658,"height":12}},{"id":"0d5dd44d-383f-4394-a4c6-89a31dc330a8","block_type":"box","text":"coordinate effectively.","page_number":432,"box":{"x":184,"y":368,"width":166,"height":12}},{"id":"a6d29500-3332-404b-b65a-3985e88c5d0f","block_type":"box","text":"• “>66% attack” where, if a validator or group of validators acting in concert were to gain control","page_number":432,"box":{"x":159,"y":392,"width":726,"height":12}},{"id":"d9590347-ea8a-4e84-93f6-3182e5701a8c","block_type":"box","text":"of more than 66% of the total staked ether on the Ethereum network, a malicious actor could","page_number":432,"box":{"x":184,"y":407,"width":691,"height":12}},{"id":"9b6d23a7-60d3-48fc-8db7-13ff67a57ddd","block_type":"box","text":"permanently and irreversibly manipulate the blockchain, including censorship, double","page_number":432,"box":{"x":184,"y":423,"width":636,"height":12}},{"id":"941547b9-3af6-4ae8-88d8-7348f28c2313","block_type":"box","text":"spending and fraudulent block propagation. The attacker could finalize their preferred chain","page_number":432,"box":{"x":184,"y":438,"width":682,"height":12}},{"id":"0827b384-33b8-4378-a26e-67e18a2eb5a1","block_type":"box","text":"without any consideration for the votes of other stakers and could also revert finalized blocks.","page_number":432,"box":{"x":183,"y":454,"width":697,"height":12}},{"id":"14032b02-dd5d-41ce-9c59-8c289b55b9b8","block_type":"box","text":"The largest bitcoin and ether wallets are believed to hold, in aggregate, a significant percentage of the","page_number":432,"box":{"x":116,"y":487,"width":762,"height":12}},{"id":"91bc51eb-5c36-417b-baf0-e5729cbfd04e","block_type":"box","text":"bitcoins and ether in circulation. Moreover, it is possible that other persons or entities control multiple","page_number":432,"box":{"x":117,"y":502,"width":752,"height":12}},{"id":"bee8b606-a37f-455c-8357-8a58fa6d3fdf","block_type":"box","text":"wallets that collectively hold a significant number of bitcoins or ether, even if they individually only hold","page_number":432,"box":{"x":116,"y":518,"width":764,"height":12}},{"id":"ccb29f15-92d0-4c26-8b9b-9861316d3e12","block_type":"box","text":"a small amount, and it is possible that some of these wallets are controlled by the same person or","page_number":432,"box":{"x":116,"y":533,"width":731,"height":12}},{"id":"6987d618-f381-40c6-b188-1adacdbc2a41","block_type":"box","text":"entity. As a result of this concentration of ownership, large sales or distributions by such holders could","page_number":432,"box":{"x":116,"y":549,"width":761,"height":12}},{"id":"1c86fcbd-b567-490c-819c-e94084d7f243","block_type":"box","text":"have an adverse effect on the market price of bitcoin or ether.","page_number":432,"box":{"x":117,"y":564,"width":462,"height":12}},{"id":"47a89fcf-6672-49cd-95d8-b1a3cd41c069","block_type":"box","text":"Risks Related to Digital Assets as a Means of Payment.","page_number":432,"box":{"x":116,"y":597,"width":420,"height":12}},{"id":"b56858d7-fbe4-43d0-96df-ce7e3799eb14","block_type":"box","text":"Digital assets such as bitcoin and ether have","page_number":432,"box":{"x":537,"y":597,"width":337,"height":12}},{"id":"7c43bca2-47de-417b-8847-2fd75bceaf55","block_type":"box","text":"only recently become selectively accepted as a means of payment by retail and commercial outlets,","page_number":432,"box":{"x":116,"y":612,"width":744,"height":12}},{"id":"449694d9-0d2b-467e-a086-1ffa8b0cb6d6","block_type":"box","text":"and use of bitcoins or ether by consumers to pay such retail and commercial outlets remains limited.","page_number":432,"box":{"x":116,"y":628,"width":749,"height":12}},{"id":"f6d15eb2-c95a-4383-9131-e0a9b4d6dfb7","block_type":"box","text":"Banks and other established financial institutions may refuse to process funds for bitcoin or ether","page_number":432,"box":{"x":117,"y":643,"width":723,"height":12}},{"id":"6c3e5d5a-892b-4e1d-9756-1b8b938845c2","block_type":"box","text":"transactions; process wire transfers to or from digital asset platforms, bitcoin- or ether-related","page_number":432,"box":{"x":116,"y":659,"width":697,"height":12}},{"id":"f6b3f73a-0be5-493b-8551-159af34d55bd","block_type":"box","text":"companies or service providers; or maintain accounts for persons or entities transacting in bitcoin or","page_number":432,"box":{"x":116,"y":674,"width":742,"height":12}},{"id":"4b13e7e6-eecf-43ff-8d31-d3775d8c347f","block_type":"box","text":"ether. As a result, the prices of bitcoin or ether may be influenced to a significant extent by speculators,","page_number":432,"box":{"x":116,"y":690,"width":765,"height":12}},{"id":"dcd3751a-f476-4acd-9cd6-011a79c7583a","block_type":"box","text":"and thus contributing to price volatility that makes retailers less likely to accept such digital assets as a","page_number":432,"box":{"x":116,"y":705,"width":760,"height":12}},{"id":"49bc8e2f-d8f3-4f56-bb64-ec6e7b8810a5","block_type":"box","text":"form of payment in the future.","page_number":432,"box":{"x":116,"y":721,"width":218,"height":12}},{"id":"9fc375d4-e7d6-482a-94fe-17101db45da7","block_type":"box","text":"In addition, as the speed of digital asset transactions and the number of transactions that can be","page_number":432,"box":{"x":117,"y":753,"width":714,"height":13}},{"id":"a2f20d3c-0fa7-49aa-a08c-e4b33cd7bfdd","block_type":"box","text":"processed lags behind growth in the use of digital asset networks, average fees and settlement times","page_number":432,"box":{"x":117,"y":769,"width":750,"height":12}},{"id":"9bb9db2f-cff0-4b56-8b64-d16e7e5e335e","block_type":"box","text":"may increase considerably. For example, the Bitcoin network and Ethereum network have been, at","page_number":432,"box":{"x":117,"y":785,"width":733,"height":12}},{"id":"e84dbc8f-6ffe-4b14-b2fe-d585727eac94","block_type":"box","text":"times, at capacity, which has led to increased transaction fees. Increased fees and decreased","page_number":432,"box":{"x":116,"y":800,"width":696,"height":12}},{"id":"8dcc5b55-51a4-4758-a170-1b60fc3d4f28","block_type":"box","text":"settlement speeds could preclude certain uses for bitcoin or ether (e.g., micropayments), and could","page_number":432,"box":{"x":116,"y":815,"width":735,"height":13}},{"id":"af0fcc74-71ad-4fbd-a702-4f915475b693","block_type":"box","text":"reduce demand for, and the price of, bitcoin or ether. Bitcoin or Ethereum transactions are typically not","page_number":432,"box":{"x":117,"y":831,"width":765,"height":12}},{"id":"087a8778-4da3-46ca-aa1e-b1fd44e8b723","block_type":"box","text":"reversible without the consent and active participation of the recipient of the transaction. Once a","page_number":432,"box":{"x":117,"y":846,"width":716,"height":12}},{"id":"bf627ae1-aa64-442a-9c6f-9f511b141878","block_type":"box","text":"transaction has been verified and recorded in a block that is added to the Bitcoin or Ethereum","page_number":432,"box":{"x":116,"y":862,"width":700,"height":10}},{"id":"09c8a96a-fa41-423f-a6d4-e72307128f60","block_type":"box","text":"blockchain, an incorrect transfer or theft of bitcoin generally will not be reversible and a holder of","page_number":432,"box":{"x":117,"y":877,"width":718,"height":13}},{"id":"f98ff964-46c6-49fe-935a-187e9e1520ee","block_type":"box","text":"II-34","page_number":432,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"c749d762-b5a9-45bf-a4ef-f09e5a5f774c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":432,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"eb8586bd-e87c-4782-ac74-c2abe028e5a4","block_type":"box","text":"bitcoin or ether, such as an ETP (as defined below), may not be capable of seeking compensation for","page_number":433,"box":{"x":117,"y":87,"width":757,"height":12}},{"id":"ae541365-9f5e-432e-aa3b-0af96cc8a44b","block_type":"box","text":"any such transfer or theft.","page_number":433,"box":{"x":116,"y":102,"width":195,"height":13}},{"id":"421b0045-bb0d-4d65-89ea-d1115c96f94e","block_type":"box","text":"Risks Related to the Digital Asset Markets.","page_number":433,"box":{"x":116,"y":134,"width":322,"height":12}},{"id":"8bdabff8-9648-40f7-9665-1a09ff2125ec","block_type":"box","text":"Bitcoin and ether were among the first cryptographic digital","page_number":433,"box":{"x":440,"y":134,"width":441,"height":12}},{"id":"9d211751-7edb-4f8f-9d78-44879e40c599","block_type":"box","text":"assets to gain global adoption and critical mass. In general, digital asset networks, including the Bitcoin","page_number":433,"box":{"x":116,"y":149,"width":771,"height":12}},{"id":"862f77e4-a146-4b4c-8f89-a1b27c53b128","block_type":"box","text":"network, the Ethereum network and other cryptographic and algorithmic protocols governing the","page_number":433,"box":{"x":117,"y":165,"width":716,"height":12}},{"id":"138f815e-a188-4afb-a6d3-4ece558102df","block_type":"box","text":"issuance of digital assets represent a new and rapidly evolving industry that is subject to a variety of","page_number":433,"box":{"x":117,"y":180,"width":746,"height":12}},{"id":"2a9d5bd3-3b68-43a8-8eb7-a5ed90f326a9","block_type":"box","text":"factors that are difficult to evaluate. In addition, many consortiums and financial institutions are also","page_number":433,"box":{"x":116,"y":196,"width":742,"height":12}},{"id":"61d4f90f-2eab-4f79-b822-48c38e396b42","block_type":"box","text":"researching and investing resources into private or permissioned smart contract platforms rather than","page_number":433,"box":{"x":117,"y":211,"width":757,"height":12}},{"id":"b6411d07-a0b3-4263-ba49-2c08ed13053d","block_type":"box","text":"open platforms like the Bitcoin network or the Ethereum network. Competition from the emergence or","page_number":433,"box":{"x":116,"y":227,"width":756,"height":12}},{"id":"6320a2a5-617e-422c-89f4-41a3b6ec5539","block_type":"box","text":"growth of alternative digital assets and smart contracts platforms, such as Solana, Avalanche,","page_number":433,"box":{"x":116,"y":242,"width":702,"height":12}},{"id":"ebfb190e-067a-4355-bde6-ccf99361b922","block_type":"box","text":"Polkadot, or Cardano, could have a negative impact on","page_number":433,"box":{"x":117,"y":258,"width":413,"height":12}},{"id":"dfc76cff-2d8e-4ff1-8d96-13a7e8643d84","block_type":"box","text":"the demand for, and price of, bitcoin or ether","page_number":433,"box":{"x":530,"y":258,"width":336,"height":11}},{"id":"dccf9667-8c1f-46c3-a849-22dca9a10b17","block_type":"box","text":"and thereby adversely affect the value of the bitcoin- or ether-related investments.","page_number":433,"box":{"x":116,"y":273,"width":614,"height":12}},{"id":"d95ddb73-7ee1-4779-be7a-877c22037993","block_type":"box","text":"Moreover, in the past, bugs, defects and flaws in the source code for digital assets have been exposed","page_number":433,"box":{"x":117,"y":304,"width":767,"height":12}},{"id":"926419db-92fd-4014-a7b8-a215d66d70ff","block_type":"box","text":"and exploited, including flaws that disabled some functionality for users, exposed users’ personal","page_number":433,"box":{"x":116,"y":320,"width":725,"height":12}},{"id":"6e9cf5f9-0f5c-4ea9-9daf-68a02e307c38","block_type":"box","text":"information and/or resulted in the theft of users’ digital assets. The cryptography underlying digital","page_number":433,"box":{"x":117,"y":335,"width":729,"height":12}},{"id":"da41124b-8086-4f9e-9b16-fd78ac126aa3","block_type":"box","text":"asset networks or digital assets could prove to be flawed or ineffective, or developments in","page_number":433,"box":{"x":116,"y":351,"width":677,"height":12}},{"id":"60f3b037-2d94-42f2-8527-f8a919b7c66a","block_type":"box","text":"mathematics and/or technology, including advances in digital computing, algebraic geometry and","page_number":433,"box":{"x":117,"y":366,"width":724,"height":12}},{"id":"04241d73-8a38-4254-a897-60f1860d145b","block_type":"box","text":"quantum computing, could result in such cryptography becoming ineffective. In any of these","page_number":433,"box":{"x":116,"y":382,"width":686,"height":12}},{"id":"2aaf7da0-4eaf-4cef-aeea-a9b49a3c58a8","block_type":"box","text":"circumstances, a malicious actor may be able to compromise the security of digital asset networks or","page_number":433,"box":{"x":116,"y":397,"width":754,"height":12}},{"id":"423b4ea9-128c-46fb-9a4e-db50fc6794b4","block_type":"box","text":"take a holder’s digital assets. Moreover, normal operations and functionality of digital asset networks","page_number":433,"box":{"x":116,"y":413,"width":751,"height":12}},{"id":"7f39778c-32c1-4e34-a39d-264a4a104553","block_type":"box","text":"may be negatively affected such that it is no longer attractive to users or other stakeholders, thereby","page_number":433,"box":{"x":117,"y":428,"width":748,"height":12}},{"id":"7bc88d7a-c02b-4296-8605-bcff9ff031bd","block_type":"box","text":"dampening demand for such digital assets.","page_number":433,"box":{"x":116,"y":444,"width":324,"height":12}},{"id":"f5a49dc6-ed50-41f4-8e43-b8dc95e28385","block_type":"box","text":"Digital Asset ETPs.","page_number":433,"box":{"x":116,"y":475,"width":148,"height":12}},{"id":"69bb3dba-a04f-4d68-b8b1-fdecbd4fe65a","block_type":"box","text":"The Fund may acquire shares in exchange-traded products (“ETPs”) that seek to","page_number":433,"box":{"x":265,"y":475,"width":606,"height":12}},{"id":"abaeb41d-b7f1-41ba-9266-1084476b3923","block_type":"box","text":"reflect generally the performance of the price of bitcoin or ether by directly holding bitcoin (“Bitcoin","page_number":433,"box":{"x":117,"y":490,"width":731,"height":12}},{"id":"b28c9086-edb1-497a-b8e6-7887b62f094e","block_type":"box","text":"ETPs”) or ether (“Ether ETPs”), including shares of a Bitcoin ETP or Ether ETP sponsored by an","page_number":433,"box":{"x":117,"y":506,"width":719,"height":12}},{"id":"0975a1d6-f103-43b1-bac7-9fe6bd553316","block_type":"box","text":"affiliate of BlackRock. The Fund will only invest in","page_number":433,"box":{"x":116,"y":521,"width":372,"height":12}},{"id":"2b783c09-3c6d-40e1-bdd4-9e111dcbab8c","block_type":"box","text":"Bitcoin ETPs or Ether ETPs that are listed and","page_number":433,"box":{"x":489,"y":521,"width":349,"height":10}},{"id":"124d6d14-d825-4017-9b3c-e592869620ec","block_type":"box","text":"traded on national securities exchanges. A Bitcoin ETP or an Ether ETP is not an investment company","page_number":433,"box":{"x":116,"y":537,"width":767,"height":12}},{"id":"5ede6400-4954-4938-9e59-46f6cff2d823","block_type":"box","text":"registered under the Investment Company Act of 1940, as amended, and therefore does not have the","page_number":433,"box":{"x":117,"y":552,"width":758,"height":12}},{"id":"73dff1f2-766b-48d8-9c0a-c5918793b9e1","block_type":"box","text":"same investor protections as a registered investment company.","page_number":433,"box":{"x":116,"y":568,"width":476,"height":12}},{"id":"cc60339f-3a3b-4dc0-b661-019f05291bc8","block_type":"box","text":"Futures on Digital Assets.","page_number":433,"box":{"x":116,"y":599,"width":190,"height":12}},{"id":"f549532a-40b4-4be8-84c3-cf059980a234","block_type":"box","text":"The Fund may invest in futures on Bitcoin and futures on Ethereum. See","page_number":433,"box":{"x":307,"y":599,"width":549,"height":12}},{"id":"a1919b57-2f0c-401f-bf0f-e8905f8282a8","block_type":"box","text":"“Derivatives—General,” “Derivatives—Regulation of Derivatives” and “Derivatives—Risk Factors in","page_number":433,"box":{"x":116,"y":614,"width":738,"height":12}},{"id":"ddf5dab4-5327-4723-8002-8ea7baaedca1","block_type":"box","text":"Derivatives” below.","page_number":433,"box":{"x":117,"y":630,"width":146,"height":9}},{"id":"6ad609ab-64a9-4233-92e9-9659ef9e07d1","block_type":"box","text":"Distressed Securities.","page_number":433,"box":{"x":116,"y":661,"width":174,"height":9}},{"id":"bea97cf7-8465-4beb-8768-838c2fd28dd3","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary","page_number":433,"box":{"x":296,"y":661,"width":565,"height":12}},{"id":"179253ec-64ba-48cd-90eb-59caa3409ba4","block_type":"box","text":"market, that are the subject of bankruptcy proceedings or otherwise in default or in risk of being in","page_number":433,"box":{"x":117,"y":676,"width":724,"height":12}},{"id":"295eecc7-f9f5-4608-83ff-c072d383f175","block_type":"box","text":"default as to the repayment of principal and/or interest at the time of acquisition by the Fund or that are","page_number":433,"box":{"x":116,"y":692,"width":763,"height":12}},{"id":"df33a171-017a-4fd2-af45-d510779c6a3a","block_type":"box","text":"rated in the lower rating categories by one or more nationally recognized statistical rating organizations","page_number":433,"box":{"x":117,"y":707,"width":762,"height":12}},{"id":"7fa415f8-a695-41fd-99d6-e508029924d2","block_type":"box","text":"(for example, Ca or lower by Moody’s and CC or lower by S&P or Fitch) or, if unrated, are in the","page_number":433,"box":{"x":117,"y":723,"width":709,"height":12}},{"id":"5eb49cbc-ed2b-4d37-b394-6728958fc776","block_type":"box","text":"judgment of the Manager of equivalent quality (“Distressed Securities”). Investment in Distressed","page_number":433,"box":{"x":115,"y":738,"width":719,"height":12}},{"id":"8e8620f1-7a45-4781-a372-049ab02652b8","block_type":"box","text":"Securities is speculative and involves significant risks.","page_number":433,"box":{"x":116,"y":754,"width":399,"height":12}},{"id":"d7314e11-d434-417e-952f-374684eb8286","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely","page_number":433,"box":{"x":116,"y":785,"width":740,"height":12}},{"id":"6c4fe9fc-4240-4c85-8850-6ffcb43eca58","block_type":"box","text":"that the issuer of the Distressed Securities will make an exchange offer or will be the subject of a plan","page_number":433,"box":{"x":116,"y":800,"width":754,"height":12}},{"id":"98a865cd-f8ab-40a8-a6bd-1f09fe27c161","block_type":"box","text":"of reorganization pursuant to which the Fund will receive new securities in return for the Distressed","page_number":433,"box":{"x":116,"y":816,"width":733,"height":12}},{"id":"3bd06f29-f271-4c20-86ad-391add8dae03","block_type":"box","text":"Securities. However, there can be no assurance that such an exchange offer will be made or that such","page_number":433,"box":{"x":116,"y":831,"width":766,"height":12}},{"id":"ef2cc25a-605c-4e97-b983-300619d012be","block_type":"box","text":"a plan of reorganization will be adopted. In addition, a significant period of time may pass between the","page_number":433,"box":{"x":116,"y":847,"width":762,"height":12}},{"id":"809fbf34-95eb-47a5-b78b-a1029530135e","block_type":"box","text":"time at which a Fund makes its investment in Distressed Securities and the time that any such","page_number":433,"box":{"x":116,"y":862,"width":704,"height":12}},{"id":"bc3406c7-1554-4b79-b8c2-00ffbaeca53f","block_type":"box","text":"exchange offer or plan of reorganization is completed. During this period, it is unlikely that a Fund will","page_number":433,"box":{"x":116,"y":878,"width":756,"height":12}},{"id":"e2764ec2-2952-4576-a6e4-b45064df06a2","block_type":"box","text":"II-35","page_number":433,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"9b63550c-0cc2-452e-9cbc-6144a08d60d9","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":433,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"87fb69a0-e1b3-4193-b305-4f5847522548","block_type":"box","text":"receive any interest payments on the Distressed Securities, the Fund will be subject to significant","page_number":434,"box":{"x":117,"y":87,"width":725,"height":12}},{"id":"b67fc835-a4f5-4410-9769-2d1781a578f4","block_type":"box","text":"uncertainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":434,"box":{"x":117,"y":102,"width":764,"height":13}},{"id":"519dcb0c-85d0-41ec-853e-cb6aae361cd6","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment.","page_number":434,"box":{"x":117,"y":118,"width":741,"height":12}},{"id":"065c33e7-4721-4afb-955f-4055601ed46e","block_type":"box","text":"Therefore, to the extent the Fund seeks capital appreciation through investment in distressed","page_number":434,"box":{"x":116,"y":134,"width":696,"height":12}},{"id":"a13664b9-4b67-435e-920c-868c3391fb49","block_type":"box","text":"securities, the Fund’s ability to achieve current income for its shareholders may be diminished. The","page_number":434,"box":{"x":116,"y":149,"width":740,"height":12}},{"id":"98acf46c-cac2-414a-82c9-6b6c8d5e7db1","block_type":"box","text":"Fund also will be subject to significant uncertainty as to when and in what manner and for what value","page_number":434,"box":{"x":117,"y":165,"width":753,"height":12}},{"id":"72f68115-16eb-450d-917d-765a8f1640d8","block_type":"box","text":"the obligations evidenced by the distressed securities will eventually be satisfied (","page_number":434,"box":{"x":116,"y":180,"width":605,"height":12}},{"id":"47060cb4-52f6-4403-bc2c-468b84750e3d","block_type":"box","text":"e.g.","page_number":434,"box":{"x":723,"y":183,"width":25,"height":9}},{"id":"560245ec-a7da-4ae3-9fe1-8c4fa4449602","block_type":"box","text":", through a","page_number":434,"box":{"x":751,"y":180,"width":84,"height":12}},{"id":"b10883c6-bd90-4d38-b4a7-05e05441171d","block_type":"box","text":"liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the distressed","page_number":434,"box":{"x":117,"y":196,"width":756,"height":12}},{"id":"0afbf66a-0254-4d1d-9c39-944330d39bdf","block_type":"box","text":"securities or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is","page_number":434,"box":{"x":116,"y":211,"width":757,"height":12}},{"id":"d13d2b61-f04c-4032-9d16-40a565919b57","block_type":"box","text":"made or plan of reorganization is adopted with respect to Distressed Securities held by a Fund, there","page_number":434,"box":{"x":117,"y":227,"width":754,"height":12}},{"id":"d68f8b7d-2dc0-464e-a5b7-12b9ba711990","block_type":"box","text":"can be no assurance that the securities or other assets received by a Fund in connection with such","page_number":434,"box":{"x":116,"y":242,"width":740,"height":12}},{"id":"900b6d1a-0abc-4968-b45b-9bc0c2b9691a","block_type":"box","text":"exchange offer or plan of reorganization will not have a lower value or income potential than may have","page_number":434,"box":{"x":116,"y":258,"width":765,"height":12}},{"id":"8e3fd855-ca29-4a3e-b109-320a77a170f4","block_type":"box","text":"been anticipated when the investment was made or no value. Moreover, any securities received by a","page_number":434,"box":{"x":117,"y":273,"width":753,"height":12}},{"id":"645f4e2d-b297-4ca5-82e1-b12d1762bdb1","block_type":"box","text":"Fund upon completion of an exchange offer or plan of reorganization may be restricted as to resale.","page_number":434,"box":{"x":117,"y":289,"width":745,"height":12}},{"id":"9f17b422-2696-4ce0-8565-8490807bef3e","block_type":"box","text":"Similarly, if a Fund participates in negotiations with respect to any exchange offer or plan of","page_number":434,"box":{"x":116,"y":304,"width":683,"height":12}},{"id":"b1cf4551-e34a-4d7e-acd2-805ecae13b35","block_type":"box","text":"reorganization with respect to an issuer of Distressed Securities, the Fund may be restricted from","page_number":434,"box":{"x":117,"y":320,"width":726,"height":12}},{"id":"adea3bc9-88ca-49c0-9772-a6a63ee6ba0b","block_type":"box","text":"disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":434,"box":{"x":116,"y":335,"width":734,"height":12}},{"id":"fa24f0c3-7cc4-4aa9-8f75-9c40474d071f","block_type":"box","text":"Fund may have a more active participation in the affairs of the issuer than that assumed generally by","page_number":434,"box":{"x":117,"y":351,"width":752,"height":12}},{"id":"e4f85361-8778-4aae-aca1-4525d1ed2fba","block_type":"box","text":"an investor. The Fund, however, will not make investments for the purpose of exercising day-to-day","page_number":434,"box":{"x":116,"y":366,"width":744,"height":12}},{"id":"6a5b3041-2de8-4f23-9a3b-4cc35a70be36","block_type":"box","text":"management of any issuer’s affairs.","page_number":434,"box":{"x":117,"y":382,"width":269,"height":12}},{"id":"eace8e0f-dfbf-4ee7-9685-0d113b1e0283","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration.","page_number":434,"box":{"x":116,"y":413,"width":476,"height":12}},{"id":"bf4ce41c-cf53-41ae-8fa6-8e97de828378","block_type":"box","text":"Although a Fund does not seek to","page_number":434,"box":{"x":593,"y":413,"width":261,"height":12}},{"id":"5b141014-92b1-4b0d-9b1c-ae6023bfff05","block_type":"box","text":"implement a specific sustainability objective, strategy or process unless disclosed in its Prospectus,","page_number":434,"box":{"x":117,"y":428,"width":741,"height":12}},{"id":"f4db1a15-6211-4902-8599-faef3176e364","block_type":"box","text":"Fund management will consider ESG factors as part of the investment process for the Fund. Fund","page_number":434,"box":{"x":117,"y":444,"width":733,"height":12}},{"id":"f855699a-78ec-4aca-aa89-9023da21ba08","block_type":"box","text":"management views ESG integration as the practice of incorporating financially material ESG data or","page_number":434,"box":{"x":117,"y":459,"width":747,"height":12}},{"id":"7ab250f5-8d6c-4fa1-a324-ba7cb0496055","block_type":"box","text":"information into investment processes with the objective of enhancing risk-adjusted returns. These","page_number":434,"box":{"x":117,"y":475,"width":734,"height":12}},{"id":"ce48de96-f379-455b-ad85-da08c16bd31b","block_type":"box","text":"ESG considerations will vary depending on a Fund’s particular investment strategies and may include","page_number":434,"box":{"x":117,"y":490,"width":757,"height":12}},{"id":"04a7f26f-ea27-4e98-85e5-48331026f4ed","block_type":"box","text":"consideration of third-party research as well as consideration of proprietary BlackRock research across","page_number":434,"box":{"x":116,"y":506,"width":770,"height":12}},{"id":"002ac38a-4bde-4702-9f8d-1bb5c0b724b7","block_type":"box","text":"the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":434,"box":{"x":116,"y":521,"width":725,"height":12}},{"id":"2778e7b7-585d-4641-9cac-234ddab813ef","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be","page_number":434,"box":{"x":117,"y":537,"width":738,"height":12}},{"id":"51b893a5-2f09-4adb-bd95-83854fcb31dd","block_type":"box","text":"relevant with respect to all issuers that are eligible for investment.","page_number":434,"box":{"x":117,"y":552,"width":490,"height":12}},{"id":"b3f0a80d-a7c0-47e1-acf2-ff2d8c21b0f4","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While","page_number":434,"box":{"x":117,"y":583,"width":769,"height":12}},{"id":"fe6cb226-8ca5-473b-84be-4d9fbdadbf63","block_type":"box","text":"Fund management views ESG considerations as having the potential to contribute to a Fund’s long","page_number":434,"box":{"x":117,"y":599,"width":740,"height":12}},{"id":"286e576a-467f-439a-9e26-bf8c69867728","block_type":"box","text":"term performance, there is no guarantee that such results will be achieved.","page_number":434,"box":{"x":116,"y":614,"width":561,"height":12}},{"id":"e83f83ec-b1d5-4992-96e3-5c804c9744c2","block_type":"box","text":"Equity Securities.","page_number":434,"box":{"x":116,"y":645,"width":140,"height":12}},{"id":"5117f4ef-aee0-41d3-8cb3-e0a238ca8e49","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for","page_number":434,"box":{"x":257,"y":645,"width":629,"height":12}},{"id":"2ac41136-84f4-4583-8b20-f80f93dccfde","block_type":"box","text":"certain Funds, preferred stock (including convertible preferred stock); bonds; stock purchase warrants","page_number":434,"box":{"x":116,"y":661,"width":755,"height":12}},{"id":"480c9b7f-2dae-48f9-8dab-d0e5e883763d","block_type":"box","text":"and rights; equity interests in trusts; general and limited partnerships and limited liability companies;","page_number":434,"box":{"x":116,"y":676,"width":739,"height":12}},{"id":"635b3c13-9625-476e-9ebc-fd37eb2df7b5","block_type":"box","text":"and depositary receipts. Stock markets are volatile. The price of equity securities will fluctuate and can","page_number":434,"box":{"x":116,"y":692,"width":759,"height":12}},{"id":"5c1947dc-2702-4fdb-b95b-94da2ac3b8f8","block_type":"box","text":"decline and reduce the value of a portfolio investing in equities. The price of equity securities fluctuates","page_number":434,"box":{"x":116,"y":707,"width":763,"height":12}},{"id":"1e0672f7-bb15-4ae3-b72f-325aaa48913f","block_type":"box","text":"based on changes in a company’s financial condition and overall market and economic conditions. The","page_number":434,"box":{"x":117,"y":723,"width":762,"height":12}},{"id":"1f328561-421b-44b7-9c03-97f5085f3239","block_type":"box","text":"value of equity securities purchased by the Fund could decline if the financial condition of the","page_number":434,"box":{"x":116,"y":738,"width":689,"height":12}},{"id":"eeee8dd2-cf65-424f-8306-54ee71064c18","block_type":"box","text":"companies the Fund invests in decline or if overall market and economic conditions deteriorate. They","page_number":434,"box":{"x":116,"y":754,"width":750,"height":12}},{"id":"246ecd54-487c-40fe-961f-77e740ec6312","block_type":"box","text":"may also decline due to factors that affect a particular industry or industries, such as labor shortages or","page_number":434,"box":{"x":117,"y":769,"width":766,"height":12}},{"id":"89ff4c00-d29c-4ed8-9abc-f96d5297f5b9","block_type":"box","text":"increase in production costs and competitive conditions within an industry. In addition, they may","page_number":434,"box":{"x":117,"y":785,"width":710,"height":12}},{"id":"6773c90e-16e6-40b5-9319-61bf34f5eab4","block_type":"box","text":"decline due to general market conditions that are not specifically related to a company or industry,","page_number":434,"box":{"x":116,"y":800,"width":726,"height":12}},{"id":"50fdedff-5a62-46c8-91cc-d8f06673ecd8","block_type":"box","text":"such as real or perceived adverse economic conditions, changes in the general outlook for corporate","page_number":434,"box":{"x":116,"y":816,"width":748,"height":12}},{"id":"ee75e5e9-eed5-4b9e-ad94-4e246e6b7c46","block_type":"box","text":"earnings, changes in interest or currency rates or generally adverse investor sentiment.","page_number":434,"box":{"x":116,"y":831,"width":654,"height":12}},{"id":"7f742501-1485-400a-92a3-3767976242ef","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public","page_number":434,"box":{"x":117,"y":862,"width":704,"height":12}},{"id":"397836f2-bcf5-42fd-a1bd-317d3170e17f","block_type":"box","text":"offerings (“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for","page_number":434,"box":{"x":116,"y":878,"width":764,"height":12}},{"id":"a0d96718-3f75-4e45-807c-e5fcaac00943","block_type":"box","text":"II-36","page_number":434,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"1476540f-eb3e-46e7-a9dc-3c27d65b19b6","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":434,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"341cc341-94d6-48fd-a079-da2efa259252","block_type":"box","text":"certain Funds. There is no assurance that any Fund will have continued access to profitable IPOs and","page_number":435,"box":{"x":116,"y":87,"width":761,"height":12}},{"id":"ac119bc7-508b-4c06-9bff-1e4897093056","block_type":"box","text":"therefore investors should not rely on these past gains as an indication of future performance. The","page_number":435,"box":{"x":116,"y":102,"width":734,"height":13}},{"id":"5e31160c-4f6e-4632-8e1b-284c36cd3454","block_type":"box","text":"investment performance of a Fund during periods when it is unable to invest significantly or at all in","page_number":435,"box":{"x":117,"y":118,"width":738,"height":12}},{"id":"8d36a26b-5f92-477a-bd37-67af4048b945","block_type":"box","text":"IPOs may be lower than during periods when it is able to do so. In addition, as a Fund increases in","page_number":435,"box":{"x":117,"y":134,"width":736,"height":12}},{"id":"1c47bc7c-f1a0-4623-ad90-c24e0a9be98f","block_type":"box","text":"size, the impact of IPOs on its performance will generally decrease. Securities issued in IPOs are","page_number":435,"box":{"x":116,"y":149,"width":727,"height":12}},{"id":"7746178d-abad-478f-be89-d2db8b0146ed","block_type":"box","text":"subject to many of the same risks as investing in companies with smaller market capitalizations.","page_number":435,"box":{"x":116,"y":165,"width":717,"height":12}},{"id":"c4f16ede-64bb-4ab1-b301-dd26244a4db1","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be","page_number":435,"box":{"x":116,"y":180,"width":713,"height":12}},{"id":"ef2ba6a3-adc2-43a4-9570-44044e811a83","block_type":"box","text":"available for very limited periods. In addition, the prices of securities sold in IPOs may be highly volatile","page_number":435,"box":{"x":116,"y":196,"width":770,"height":12}},{"id":"6028fe9b-27a4-47b2-a8fb-9ae581feee9e","block_type":"box","text":"or may decline shortly after the initial public offering.","page_number":435,"box":{"x":116,"y":211,"width":392,"height":12}},{"id":"7e7fcb02-67b3-4f8e-87eb-b0d8fcacfc96","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These","page_number":435,"box":{"x":116,"y":242,"width":685,"height":12}},{"id":"bc3422a5-4cfd-4912-96f1-57ac4a840689","block_type":"box","text":"organizations will normally have more limited product lines, markets and financial resources and will be","page_number":435,"box":{"x":116,"y":258,"width":769,"height":12}},{"id":"471bbbf6-1c7f-45d9-80f2-6fbda3d5a7d8","block_type":"box","text":"dependent upon a more limited management group than larger capitalized companies. In addition, it is","page_number":435,"box":{"x":116,"y":273,"width":764,"height":12}},{"id":"164ee9d9-6b00-4339-880f-7efa5c178217","block_type":"box","text":"more difficult to get information on smaller companies, which tend to be less well known, have shorter","page_number":435,"box":{"x":117,"y":289,"width":758,"height":12}},{"id":"c8152b79-95b7-4dbd-b3fa-e21421d72875","block_type":"box","text":"operating histories, do not have significant ownership by large investors and are followed by relatively","page_number":435,"box":{"x":116,"y":304,"width":758,"height":12}},{"id":"d01d1582-6fbc-44f9-97f3-3c26c0e02381","block_type":"box","text":"few securities analysts. The securities of smaller capitalized companies are often traded in the OTC","page_number":435,"box":{"x":116,"y":320,"width":744,"height":12}},{"id":"41d3f642-14b3-4ca2-9c71-097d4c68dfc0","block_type":"box","text":"markets and may have fewer market makers and wider price spreads. This may result in greater price","page_number":435,"box":{"x":117,"y":335,"width":760,"height":12}},{"id":"81b02742-3c49-4f9b-b84f-2af475f556aa","block_type":"box","text":"movements and less ability to sell a Fund’s investment than if the Fund held the securities of larger,","page_number":435,"box":{"x":117,"y":351,"width":743,"height":12}},{"id":"e31e554d-0aea-4184-8aa6-2cfef9e6060c","block_type":"box","text":"more established companies.","page_number":435,"box":{"x":117,"y":366,"width":222,"height":12}},{"id":"e565a64f-f0f9-4cca-b551-2ce17ebcf66b","block_type":"box","text":"For a discussion of the types of equity securities in which your Fund may invest and the risks","page_number":435,"box":{"x":117,"y":397,"width":693,"height":12}},{"id":"5d96628d-e73e-4bf6-8237-252f0db08af6","block_type":"box","text":"associated with investing in such equity securities, see your Fund’s Prospectus. Certain of the Funds","page_number":435,"box":{"x":116,"y":413,"width":754,"height":12}},{"id":"b4c12cef-51d6-478f-8b39-16d20e5362df","block_type":"box","text":"may also invest in shares of private companies, which are subject to the risks of “Illiquid Investments”","page_number":435,"box":{"x":117,"y":428,"width":756,"height":12}},{"id":"ab06d8d4-38a0-4fd3-96cb-b1785e33d424","block_type":"box","text":"and “Restricted Securities” described below.","page_number":435,"box":{"x":116,"y":444,"width":334,"height":9}},{"id":"2f3c5f05-0bff-4a2b-a4c6-31d7bdbeb3d4","block_type":"box","text":"Real Estate-Related Securities.","page_number":435,"box":{"x":116,"y":475,"width":232,"height":9}},{"id":"962a76b8-38bc-4556-aa51-883339d8a032","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may","page_number":435,"box":{"x":349,"y":475,"width":535,"height":12}},{"id":"b96cae33-8135-410d-9097-c5bb15dde8e5","block_type":"box","text":"invest in equity securities of issuers that are principally engaged in the real estate industry. Such","page_number":435,"box":{"x":117,"y":490,"width":719,"height":12}},{"id":"da22d047-d38c-4dcd-b5e9-f2305acb878d","block_type":"box","text":"investments are subject to certain risks associated with the ownership of real estate and with the real","page_number":435,"box":{"x":117,"y":506,"width":753,"height":12}},{"id":"daced114-8613-432c-823d-3c1e197f645a","block_type":"box","text":"estate industry in general. These risks include, among others: possible declines in the value of real","page_number":435,"box":{"x":116,"y":521,"width":738,"height":12}},{"id":"9175003c-6622-4f3e-b2fa-97f9e5470371","block_type":"box","text":"estate; risks related to general and local economic conditions; possible lack of availability of mortgage","page_number":435,"box":{"x":116,"y":537,"width":760,"height":12}},{"id":"91a38d87-8a94-4955-94e8-10dc90fb234b","block_type":"box","text":"funds or other limitations on access to capital; overbuilding; risks associated with leverage; market","page_number":435,"box":{"x":116,"y":552,"width":734,"height":12}},{"id":"23cca783-f3a0-4b3a-8024-a781aa14ad83","block_type":"box","text":"illiquidity; extended vacancies of properties; increase in competition, property taxes, capital","page_number":435,"box":{"x":117,"y":568,"width":679,"height":12}},{"id":"64fc46cc-c939-4e17-ac72-94aa40fe10d6","block_type":"box","text":"expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":435,"box":{"x":116,"y":583,"width":765,"height":12}},{"id":"5e146ac9-25b6-4d26-97eb-190adac890ed","block_type":"box","text":"resulting from the clean-up of, and liability to third parties for damages resulting from, environmental","page_number":435,"box":{"x":117,"y":599,"width":746,"height":12}},{"id":"ea3e4f28-9e13-44b4-801f-1b84d66ece1e","block_type":"box","text":"problems; tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured","page_number":435,"box":{"x":117,"y":614,"width":748,"height":12}},{"id":"8f65a760-05f2-4177-adb6-788824526fc5","block_type":"box","text":"damages from floods, earthquakes or other natural disasters; limitations on and variations in rents,","page_number":435,"box":{"x":116,"y":630,"width":736,"height":12}},{"id":"e83499d9-0daa-4698-8c16-e6fab2a60d37","block_type":"box","text":"including decreases in market rates for rents; investment in developments that are not completed or","page_number":435,"box":{"x":117,"y":645,"width":745,"height":12}},{"id":"de650ef2-f0f2-45f4-8617-f706c7447326","block_type":"box","text":"that are subject to delays in completion; and changes in interest rates. To the extent that assets","page_number":435,"box":{"x":116,"y":661,"width":710,"height":12}},{"id":"b948c7ce-7352-450a-acbc-655df48bd883","block_type":"box","text":"underlying a Fund’s investments are concentrated geographically, by property type or in certain other","page_number":435,"box":{"x":117,"y":676,"width":750,"height":12}},{"id":"20c1c9d1-f765-4e6c-b426-ed3c5c52aace","block_type":"box","text":"respects, the Fund may be subject to certain of the foregoing risks to a greater extent. Investments by","page_number":435,"box":{"x":117,"y":692,"width":755,"height":12}},{"id":"792183f2-3e4d-4464-96c3-7bc8e1d4950c","block_type":"box","text":"a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":435,"box":{"x":116,"y":707,"width":750,"height":12}},{"id":"d46ff5e0-6f62-4d58-a025-1647771e2e8f","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":435,"box":{"x":116,"y":723,"width":393,"height":12}},{"id":"41a21f95-f5ce-49d3-aa22-32cc600d0358","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real property acquired as","page_number":435,"box":{"x":117,"y":754,"width":763,"height":12}},{"id":"9d07fdc6-7e97-46a3-9807-2f7b5368a97d","block_type":"box","text":"a result of a default on securities the Fund owns, the receipt of such income may adversely affect the","page_number":435,"box":{"x":116,"y":769,"width":750,"height":12}},{"id":"60ff37fd-244d-4ff8-9d37-c52fdf361519","block_type":"box","text":"Fund’s ability to retain its tax status as a regulated investment company because of certain income","page_number":435,"box":{"x":117,"y":785,"width":732,"height":12}},{"id":"0021a47e-ed24-426f-8724-0db44af7a4ad","block_type":"box","text":"source requirements applicable to regulated investment companies under the Internal Revenue Code","page_number":435,"box":{"x":116,"y":800,"width":752,"height":12}},{"id":"a005da80-c2de-4787-99ad-4c3be50fa258","block_type":"box","text":"of 1986, as amended (the “Code”).","page_number":435,"box":{"x":116,"y":816,"width":257,"height":12}},{"id":"ef2676bd-d058-49ce-a957-b3a8ef1a9845","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":435,"box":{"x":117,"y":847,"width":401,"height":12}},{"id":"50b4b553-3bff-4bc0-ae41-c0c8fe4be094","block_type":"box","text":"Investment in smaller or emerging growth","page_number":435,"box":{"x":520,"y":847,"width":318,"height":12}},{"id":"169b816d-db38-4589-83a1-9af6e30361c2","block_type":"box","text":"companies involves greater risk than is customarily associated with investments in more established","page_number":435,"box":{"x":116,"y":862,"width":749,"height":12}},{"id":"e8dde40d-f2a1-43ba-a8b8-2a81ba1b7a95","block_type":"box","text":"companies. The securities of smaller or emerging growth companies may be subject to more abrupt or","page_number":435,"box":{"x":116,"y":878,"width":765,"height":12}},{"id":"62afd6b3-86ed-4d49-a714-449767de1d46","block_type":"box","text":"II-37","page_number":435,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"4210a8af-1392-4a8b-9033-e68520796d21","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":435,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"31552d40-6033-422e-9a20-127842d5f91c","block_type":"box","text":"erratic market movements than larger, more established companies or the market average in general.","page_number":436,"box":{"x":116,"y":87,"width":761,"height":12}},{"id":"ac82f55a-ceaf-4d00-9f0c-6d252b919352","block_type":"box","text":"These companies may have limited product lines, markets or financial resources, or they may be","page_number":436,"box":{"x":116,"y":102,"width":723,"height":13}},{"id":"e2b4bbb1-69fc-452b-ae95-00c761e777a3","block_type":"box","text":"dependent on a limited management group.","page_number":436,"box":{"x":116,"y":118,"width":330,"height":12}},{"id":"e0275877-47da-4878-9dd9-7604fc75956c","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be","page_number":436,"box":{"x":117,"y":149,"width":727,"height":12}},{"id":"0fd01e2d-5e24-4f22-aefe-321d7e2dfad0","block_type":"box","text":"considered speculative. Full development of these companies and trends frequently takes time.","page_number":436,"box":{"x":116,"y":165,"width":713,"height":12}},{"id":"94e2003f-8cb6-47c0-b2df-7ad500e8c728","block_type":"box","text":"Small cap and emerging growth securities will often be traded only in the OTC market or on a regional","page_number":436,"box":{"x":116,"y":196,"width":762,"height":12}},{"id":"9c1de2be-c7d4-4b24-9d6b-ea3e9af47c2d","block_type":"box","text":"securities exchange and may not be traded every day or in the volume typical of trading on a national","page_number":436,"box":{"x":116,"y":211,"width":757,"height":12}},{"id":"159672f3-e7bf-44c8-9742-44a2cae40dd6","block_type":"box","text":"securities exchange. As a result, the disposition by a Fund of portfolio securities to meet redemptions","page_number":436,"box":{"x":116,"y":227,"width":756,"height":12}},{"id":"688cbcfb-eada-4fda-9574-34247f3513da","block_type":"box","text":"or otherwise may require the Fund to make many small sales over a lengthy period of time, or to sell","page_number":436,"box":{"x":116,"y":242,"width":749,"height":12}},{"id":"39650005-d695-4578-bdfa-f339502aa5df","block_type":"box","text":"these securities at a discount from market prices or during periods when, in Fund management’s","page_number":436,"box":{"x":116,"y":258,"width":722,"height":12}},{"id":"515c1afc-fdc9-4f43-9e9a-4bd34eddfbf8","block_type":"box","text":"judgment, such disposition is not desirable.","page_number":436,"box":{"x":115,"y":273,"width":326,"height":12}},{"id":"47fee633-c6a8-4afb-b6f5-fdae7a74cd4a","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee","page_number":436,"box":{"x":116,"y":304,"width":714,"height":12}},{"id":"29432ef8-d3cc-47a9-a39a-05eeb481dc06","block_type":"box","text":"successful investment results. Careful initial selection is particularly important in this area as many new","page_number":436,"box":{"x":116,"y":320,"width":770,"height":12}},{"id":"7d814eac-197c-4b2f-b933-7bbce3c91d62","block_type":"box","text":"enterprises have promise but lack certain of the fundamental factors necessary to prosper. Investing in","page_number":436,"box":{"x":116,"y":335,"width":767,"height":12}},{"id":"70c5b4b2-b459-49cf-930c-a65f99f49eac","block_type":"box","text":"small cap and emerging growth companies requires specialized research and analysis.","page_number":436,"box":{"x":116,"y":351,"width":651,"height":12}},{"id":"37e0591a-08b0-4aeb-963e-b394e339ce41","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into","page_number":436,"box":{"x":117,"y":382,"width":753,"height":12}},{"id":"44b62294-bcb0-4d58-8b26-b3cc3b45a87c","block_type":"box","text":"significant business enterprises. A Fund may invest in securities of small issuers in the relatively early","page_number":436,"box":{"x":116,"y":397,"width":759,"height":12}},{"id":"33ff12c1-c170-4b42-909c-a03942c2c5cb","block_type":"box","text":"stages of business development that have a new technology, a unique or proprietary product or","page_number":436,"box":{"x":116,"y":413,"width":714,"height":12}},{"id":"77f36edf-b5c5-4371-a869-2c9091ee6f59","block_type":"box","text":"service, or a favorable market position.","page_number":436,"box":{"x":116,"y":428,"width":294,"height":12}},{"id":"b5764fc7-5d85-4846-8351-6121a9d73150","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":436,"box":{"x":117,"y":459,"width":757,"height":12}},{"id":"488647f0-e31a-459f-b256-9ec7984689e9","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying","page_number":436,"box":{"x":116,"y":475,"width":763,"height":12}},{"id":"6f7623ab-a90e-4064-b9b3-0fbfd18f38d9","block_type":"box","text":"stages of their business development. The market valuation of small cap issuers tends to fluctuate","page_number":436,"box":{"x":116,"y":490,"width":734,"height":12}},{"id":"83ac5a7e-c5f8-4b58-b685-e287ca6c2248","block_type":"box","text":"during economic or market cycles.","page_number":436,"box":{"x":116,"y":506,"width":260,"height":12}},{"id":"2cd153dc-6a66-444f-b6d5-2ea1eb06678f","block_type":"box","text":"Tracking Stocks","page_number":436,"box":{"x":118,"y":537,"width":117,"height":12}},{"id":"a8befe04-5eb7-4d20-9f60-0521a800a525","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a","page_number":436,"box":{"x":237,"y":537,"width":604,"height":12}},{"id":"3d8ce289-39df-417f-95fb-0cc9b9761ce1","block_type":"box","text":"specific business unit or operating division within a larger company and is designed to “track” the","page_number":436,"box":{"x":116,"y":552,"width":723,"height":12}},{"id":"fb749dca-0f4c-48ac-bc07-59cfb545ec4b","block_type":"box","text":"performance of such business unit or division. The tracking stock may pay dividends to shareholders","page_number":436,"box":{"x":117,"y":568,"width":751,"height":12}},{"id":"af6bcf7a-9d80-4104-8b78-48a6dd217cad","block_type":"box","text":"independent of the parent company. The parent company, rather than the business unit or division,","page_number":436,"box":{"x":117,"y":583,"width":739,"height":12}},{"id":"38f0cd1f-7575-4a20-9ccb-b48f40a1f227","block_type":"box","text":"generally is the issuer of tracking stock. However, holders of the tracking stock may not have the same","page_number":436,"box":{"x":116,"y":599,"width":768,"height":12}},{"id":"429e1f45-23a2-4f1f-851e-e1d77ce0a461","block_type":"box","text":"rights as holders of the company’s common stock.","page_number":436,"box":{"x":117,"y":614,"width":377,"height":12}},{"id":"74c92ecb-8c5b-4e8a-88f4-8ed253e245ae","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":436,"box":{"x":116,"y":645,"width":271,"height":12}},{"id":"2c64dbc3-6f1f-42ad-bef3-f4d9ae2b3c17","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes","page_number":436,"box":{"x":389,"y":645,"width":464,"height":12}},{"id":"e7e710a2-9394-47ee-aff2-9c7bd3f0e208","block_type":"box","text":"representing debt of the issuer, usually a financial institution. ETNs combine aspects of both bonds and","page_number":436,"box":{"x":117,"y":661,"width":765,"height":12}},{"id":"60e0207c-7df0-4a35-b888-e5404651bc89","block_type":"box","text":"ETFs. An ETN’s returns are based on the performance of one or more underlying assets, reference","page_number":436,"box":{"x":117,"y":676,"width":737,"height":12}},{"id":"e7f7fde3-c804-4922-885f-5f4d9d0f3e4c","block_type":"box","text":"rates or indexes, minus fees and expenses. Similar to ETFs, ETNs are listed on an exchange and","page_number":436,"box":{"x":117,"y":692,"width":724,"height":12}},{"id":"38280f9a-b8c2-4c36-82aa-3fec2831834c","block_type":"box","text":"traded in the secondary market. However, unlike an ETF, an ETN can be held until the ETN’s maturity,","page_number":436,"box":{"x":116,"y":707,"width":761,"height":12}},{"id":"f16538ba-f3c1-46e2-98b4-f401b2a9c26e","block_type":"box","text":"at which time the issuer will pay a return linked to the performance of the specific asset, index or rate","page_number":436,"box":{"x":116,"y":723,"width":748,"height":12}},{"id":"85328650-98b7-4b23-baf9-6039d228da22","block_type":"box","text":"(“reference instrument”) to which the ETN is linked minus certain fees. Unlike regular bonds, ETNs do","page_number":436,"box":{"x":117,"y":738,"width":753,"height":12}},{"id":"4a15d7dc-3f6c-406a-835d-ed5059ab41f1","block_type":"box","text":"not make periodic interest payments, and principal is not protected.","page_number":436,"box":{"x":117,"y":754,"width":497,"height":12}},{"id":"1125aaa7-c170-459b-9036-d5c7f2e1a9c1","block_type":"box","text":"The value of an ETN may be influenced by, among other things, time to maturity, level of supply and","page_number":436,"box":{"x":116,"y":785,"width":743,"height":12}},{"id":"9dad2b7b-c33b-410a-8ec7-9b6289e25129","block_type":"box","text":"demand for the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable","page_number":436,"box":{"x":116,"y":800,"width":731,"height":12}},{"id":"7073ee84-b587-460a-94ac-8a8925a876d2","block_type":"box","text":"interest rates, the performance of the reference instrument, changes in the issuer’s credit rating and","page_number":436,"box":{"x":117,"y":816,"width":739,"height":12}},{"id":"cee78048-6683-4b79-9dd3-6d04062b74a3","block_type":"box","text":"economic, legal, political or geographic events that affect the reference instrument. ETNs are subject to","page_number":436,"box":{"x":116,"y":831,"width":772,"height":12}},{"id":"6fd2a6a9-749a-447a-85b0-c166dbad4425","block_type":"box","text":"credit risk and the value of the ETN may drop due to a downgrade in an issuer’s credit rating, despite","page_number":436,"box":{"x":116,"y":847,"width":755,"height":12}},{"id":"011923a3-0e77-4c6d-a03c-bf535d36e259","block_type":"box","text":"the underlying reference instrument remaining unchanged. When a Fund invests in ETNs, it will bear","page_number":436,"box":{"x":116,"y":862,"width":752,"height":12}},{"id":"780f584b-4039-4e1c-883e-9d0c8eab6085","block_type":"box","text":"its proportionate share of any fees and expenses borne by the ETN.","page_number":436,"box":{"x":117,"y":878,"width":509,"height":12}},{"id":"6c6eb2db-c5c1-483f-a29a-11783b5f5cdf","block_type":"box","text":"II-38","page_number":436,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"38531422-51cb-4de0-b57f-4bb3b5f8389c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":436,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8c249f7b-ced3-42d7-bcad-d3270be9e0fa","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference","page_number":437,"box":{"x":116,"y":87,"width":720,"height":12}},{"id":"cd935f8d-d457-43c8-8e97-80d78dcc6ae3","block_type":"box","text":"instrument. ETNs also incur certain expenses not incurred by their applicable reference instrument.","page_number":437,"box":{"x":117,"y":102,"width":740,"height":13}},{"id":"e6adc1a0-fd88-4420-9101-97283f3bc1f3","block_type":"box","text":"Some ETNs that use leverage may, at times, be illiquid and","page_number":437,"box":{"x":116,"y":118,"width":446,"height":12}},{"id":"ab649f13-188b-45ad-9223-9677d1c6d14a","block_type":"box","text":"may be difficult to purchase or sell at a fair","page_number":437,"box":{"x":563,"y":118,"width":319,"height":12}},{"id":"251bb667-353b-4b77-bff5-d80f8a3ff803","block_type":"box","text":"price. Levered ETNs are subject to the same risk as other instruments that use leverage in any form.","page_number":437,"box":{"x":117,"y":134,"width":751,"height":12}},{"id":"b5b8e7aa-90fd-4438-92c2-ad0def5ca55d","block_type":"box","text":"While leverage allows for greater potential return, the potential for loss is also greater. Finally,","page_number":437,"box":{"x":116,"y":149,"width":700,"height":12}},{"id":"cb93ac00-c3b1-4092-82a0-147830827fdc","block_type":"box","text":"additional losses may be incurred if the investment loses value because, in addition to the money lost","page_number":437,"box":{"x":116,"y":165,"width":757,"height":12}},{"id":"586ffd41-a227-425c-8f28-24b4c59575a4","block_type":"box","text":"on the investment, the loan still needs to be repaid.","page_number":437,"box":{"x":116,"y":180,"width":384,"height":12}},{"id":"c768e9b9-4b14-4534-a198-a25abec1e9d3","block_type":"box","text":"Because the return on the ETN is dependent on the issuer’s ability or willingness to meet its","page_number":437,"box":{"x":117,"y":210,"width":685,"height":12}},{"id":"f9d657e2-a2b9-48c0-b8d5-4237a93caae8","block_type":"box","text":"obligations, the value of the ETN may change due to a change in the issuer’s credit rating, despite no","page_number":437,"box":{"x":116,"y":226,"width":757,"height":12}},{"id":"e450101c-fef4-4e71-9679-654db18f02a6","block_type":"box","text":"change in the underlying reference instrument. The market value of ETN shares may differ from the","page_number":437,"box":{"x":116,"y":241,"width":744,"height":12}},{"id":"7af93abe-2438-4f31-a21f-f6e3ed0dad91","block_type":"box","text":"value of the reference instrument. This difference in price may be due to the fact that the supply and","page_number":437,"box":{"x":116,"y":257,"width":748,"height":12}},{"id":"f75dd0e7-3c6d-42bd-ba4a-b210564780c2","block_type":"box","text":"demand in the market for ETN shares at any point in time is not always identical to the supply and","page_number":437,"box":{"x":116,"y":272,"width":732,"height":12}},{"id":"12c9181b-13f6-4708-9009-d3faa75e0c37","block_type":"box","text":"demand in the market for the assets underlying the reference instrument that the ETN seeks to track.","page_number":437,"box":{"x":116,"y":288,"width":755,"height":12}},{"id":"d44ee556-99b3-4cdf-8a83-f21f9968e2f8","block_type":"box","text":"There may be restrictions on the Fund’s right to redeem its investment in an ETN, which are generally","page_number":437,"box":{"x":116,"y":318,"width":761,"height":12}},{"id":"d8a4be3f-cad8-4980-874a-febdb0b166bf","block_type":"box","text":"meant to be held until maturity. The Fund’s decision to sell its ETN holdings may be limited by the","page_number":437,"box":{"x":117,"y":333,"width":728,"height":12}},{"id":"f0e3a719-a4d2-4b22-8d3d-92468953d718","block_type":"box","text":"availability of a secondary market. An investor in an ETN could lose some or all of the amount","page_number":437,"box":{"x":116,"y":349,"width":701,"height":12}},{"id":"ea31a2fe-6211-4ec8-a138-9e688c1266a6","block_type":"box","text":"invested.","page_number":437,"box":{"x":117,"y":364,"width":71,"height":10}},{"id":"35bb9443-3eb8-4824-93ba-d3d8bc65b3f6","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a","page_number":437,"box":{"x":117,"y":394,"width":739,"height":12}},{"id":"093aa904-f562-4aab-ae45-934ec519e1f1","block_type":"box","text":"court may not uphold, how the Funds characterize and treat ETNs for tax purposes. The timing and","page_number":437,"box":{"x":116,"y":410,"width":742,"height":12}},{"id":"a9624d3d-350c-4807-8684-b050c58eda9a","block_type":"box","text":"character of income and gains derived by a Fund from investments in ETNs may be affected by future","page_number":437,"box":{"x":116,"y":425,"width":762,"height":12}},{"id":"a81b0677-ebea-4914-9f2d-89e38866ae76","block_type":"box","text":"legislation.","page_number":437,"box":{"x":117,"y":441,"width":83,"height":12}},{"id":"3fb67b68-a276-40b6-878c-fd7a59322174","block_type":"box","text":"Foreign Investments.","page_number":437,"box":{"x":116,"y":471,"width":174,"height":12}},{"id":"fbfc5360-6280-4024-b277-aec524d371f6","block_type":"box","text":"Foreign Investment Risks.","page_number":437,"box":{"x":116,"y":494,"width":193,"height":12}},{"id":"156774b8-a138-4d06-a61f-56912ed182cc","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from","page_number":437,"box":{"x":310,"y":493,"width":540,"height":13}},{"id":"1b9af95c-db59-45e7-bd0e-263c0f9ba326","block_type":"box","text":"issuers located in emerging market countries. These securities may be denominated in U.S. dollars or","page_number":437,"box":{"x":117,"y":509,"width":760,"height":12}},{"id":"ae3034d7-fd5f-4a78-a0d2-1f0271a63590","block_type":"box","text":"in a foreign currency. Investing in foreign securities involves risks not typically associated with investing","page_number":437,"box":{"x":117,"y":524,"width":770,"height":13}},{"id":"ad0d05ce-27f8-4cfc-998b-2a8f4a01a2ff","block_type":"box","text":"in securities of companies organized and operated in the United States that can increase the chances","page_number":437,"box":{"x":117,"y":540,"width":759,"height":12}},{"id":"8f6e0ff2-2fa2-4dbd-9f43-b15894973b85","block_type":"box","text":"that a Fund will lose money.","page_number":437,"box":{"x":116,"y":556,"width":213,"height":12}},{"id":"22acbe48-6a94-47df-9233-715389a98a06","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be","page_number":437,"box":{"x":116,"y":586,"width":762,"height":12}},{"id":"a4ed737f-7b38-4e5c-b38e-e8f8c975b9ed","block_type":"box","text":"foreign securities (but rather deemed to be U.S. securities) if (i) the company’s principal operations are","page_number":437,"box":{"x":116,"y":601,"width":766,"height":12}},{"id":"4810437f-4a52-48ed-a072-fbead4876d43","block_type":"box","text":"conducted from the U.S., (ii) the company’s equity securities trade principally on a U.S. stock","page_number":437,"box":{"x":116,"y":617,"width":694,"height":12}},{"id":"2ff281bd-1fd8-4f35-a7ef-fd6d64c96b43","block_type":"box","text":"exchange, (iii) the company does a substantial amount of business in the U.S. or (iv) the issuer of","page_number":437,"box":{"x":116,"y":632,"width":729,"height":12}},{"id":"47ba7290-46c2-4284-99f8-861fddc8e86a","block_type":"box","text":"securities is included in the Fund’s primary U.S. benchmark index.","page_number":437,"box":{"x":116,"y":648,"width":496,"height":12}},{"id":"354e8a36-50c7-4086-9b84-6c27c1b2f0b7","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations","page_number":437,"box":{"x":117,"y":678,"width":721,"height":12}},{"id":"43530949-8b1c-4ec3-bb5d-0e01274a1d0b","block_type":"box","text":"issued or guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities","page_number":437,"box":{"x":117,"y":693,"width":762,"height":12}},{"id":"c455cfe0-418c-4557-bd68-564e75aad3c0","block_type":"box","text":"or political subdivisions, including a foreign state, province or municipality; (b) debt obligations of","page_number":437,"box":{"x":116,"y":709,"width":716,"height":12}},{"id":"b933d2b4-c257-4b73-bd18-e74661e896c5","block_type":"box","text":"supranational organizations; (c) debt obligations of foreign banks and bank holding companies;","page_number":437,"box":{"x":116,"y":724,"width":703,"height":12}},{"id":"7d1214d6-c23a-446e-b8b9-fa4984d31c1b","block_type":"box","text":"(d) debt obligations of domestic banks and corporations issued in foreign currencies; (e) debt","page_number":437,"box":{"x":117,"y":740,"width":689,"height":12}},{"id":"1780f2f1-80c2-4d59-8d13-e1f874236429","block_type":"box","text":"obligations denominated in the Euro; and (f) foreign corporate debt securities and commercial paper.","page_number":437,"box":{"x":116,"y":755,"width":746,"height":12}},{"id":"8ccc2cfd-16e3-40c3-928a-99f972d9d8e3","block_type":"box","text":"Such securities may include loan participations and assignments, convertible securities and","page_number":437,"box":{"x":116,"y":771,"width":678,"height":12}},{"id":"21cdabe9-9b88-4a03-b657-55156b3eeeba","block_type":"box","text":"zero-coupon securities.","page_number":437,"box":{"x":116,"y":786,"width":172,"height":12}},{"id":"22639863-1d5d-4cba-b333-2029b56176c7","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign","page_number":437,"box":{"x":117,"y":816,"width":723,"height":12}},{"id":"dd2a9d0b-584b-4017-a772-1bb3c01b8114","block_type":"box","text":"withholding taxes.","page_number":437,"box":{"x":116,"y":832,"width":138,"height":12}},{"id":"1c21f1df-380f-4e9f-880f-9ae2db109df2","block_type":"box","text":"To the extent that the underlying securities or other instruments held by a Fund trade on foreign","page_number":437,"box":{"x":116,"y":862,"width":715,"height":12}},{"id":"0d44bfa3-5bfb-44e5-8342-0fef8f8bd175","block_type":"box","text":"exchanges or in foreign markets that are closed when the securities exchange on which the Fund’s","page_number":437,"box":{"x":116,"y":877,"width":740,"height":12}},{"id":"f0c25c73-87b9-422c-b21d-aa774a59e7fe","block_type":"box","text":"II-39","page_number":437,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"f15d52ec-4f8f-4ee7-8c3d-8aa1334340bf","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":437,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"5c97fdf9-08c5-42d5-b0d5-cd015954202c","block_type":"box","text":"shares trade is open, there are likely to be deviations between the current price of such an underlying","page_number":438,"box":{"x":116,"y":87,"width":758,"height":12}},{"id":"5f01a78e-65f1-4518-9d0d-1eec59c08a82","block_type":"box","text":"security and the last quoted price for the underlying security (i.e., the Fund’s quote from the closed","page_number":438,"box":{"x":116,"y":102,"width":736,"height":13}},{"id":"353254b4-4506-47b7-8943-966bb99bf771","block_type":"box","text":"foreign market). The impact of a closed foreign market on a Fund is likely to be greater where a large","page_number":438,"box":{"x":116,"y":118,"width":755,"height":12}},{"id":"1cce12ac-53c5-45c5-b16f-5940147bdc22","block_type":"box","text":"portion of the Fund’s underlying securities or other instruments trade on that closed foreign market or","page_number":438,"box":{"x":117,"y":134,"width":754,"height":12}},{"id":"b05b1db1-9b44-4ebb-b092-6734ea9b2001","block_type":"box","text":"when the foreign market is closed for unscheduled reasons. These deviations may result in premiums","page_number":438,"box":{"x":116,"y":149,"width":759,"height":12}},{"id":"ea20927f-8bff-4ea7-a224-b6cee1925bd5","block_type":"box","text":"or discounts to certain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":438,"box":{"x":116,"y":165,"width":718,"height":12}},{"id":"0694c23c-256b-487a-b2e9-0453679bfdf8","block_type":"box","text":"Foreign Market Risk.","page_number":438,"box":{"x":116,"y":196,"width":152,"height":12}},{"id":"03d4e078-f718-4f96-9ae6-3575a2dff6da","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more","page_number":438,"box":{"x":269,"y":196,"width":521,"height":12}},{"id":"c6e3f841-f1bc-4021-b463-7d5df5c3811b","block_type":"box","text":"diversification than a Fund that invests only in the United States because securities traded on foreign","page_number":438,"box":{"x":116,"y":211,"width":746,"height":12}},{"id":"7025eb57-04ac-4f74-bd0c-f58b4f211704","block_type":"box","text":"markets have often (though not always) performed differently from securities traded in the United","page_number":438,"box":{"x":117,"y":227,"width":715,"height":12}},{"id":"f322fd12-9762-4abf-83bb-9a00ab666793","block_type":"box","text":"States. However, such investments often involve risks not present in U.S. investments that can increase","page_number":438,"box":{"x":116,"y":242,"width":769,"height":12}},{"id":"0cfc5ee1-2d33-4b74-8cc7-de9f698b06ac","block_type":"box","text":"the chances that a Fund will lose money. In particular, a Fund is subject to the risk that, because there","page_number":438,"box":{"x":116,"y":258,"width":756,"height":12}},{"id":"a53e85e7-6f57-479c-b941-35dccaecc2d1","block_type":"box","text":"are generally fewer investors on foreign exchanges and a smaller number of shares traded each day, it","page_number":438,"box":{"x":116,"y":273,"width":762,"height":12}},{"id":"9a675cad-7b80-46b4-90f6-a2f383ec1a95","block_type":"box","text":"may be difficult for the Fund to buy and sell securities on those exchanges. In addition, prices of foreign","page_number":438,"box":{"x":117,"y":289,"width":763,"height":12}},{"id":"7cab881d-410d-43c9-b61a-6cdd306cda05","block_type":"box","text":"securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":438,"box":{"x":116,"y":304,"width":719,"height":12}},{"id":"9f943a5b-3927-45c6-bbb2-1f76be25e8b5","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of","page_number":438,"box":{"x":116,"y":320,"width":727,"height":12}},{"id":"09a37cce-8a6e-4262-abad-1b0c76f57b7f","block_type":"box","text":"punitive taxes or tariffs. In addition, economic conditions, such as volatile currency exchange rates and","page_number":438,"box":{"x":117,"y":335,"width":759,"height":12}},{"id":"c207af82-d745-45b7-8dbf-78d15475a152","block_type":"box","text":"interest rates, political events, military action and other conditions may, without prior warning, lead to the","page_number":438,"box":{"x":117,"y":351,"width":770,"height":12}},{"id":"af49d2a1-f9a5-4dec-bff0-1a617db832ce","block_type":"box","text":"governments of certain countries, or the U.S. Government with respect to certain countries, prohibiting","page_number":438,"box":{"x":116,"y":366,"width":756,"height":12}},{"id":"340c02a4-96a1-4c45-ac42-67e4fec8602b","block_type":"box","text":"or imposing substantial restrictions through capital controls and/or sanctions on foreign investing in the","page_number":438,"box":{"x":116,"y":382,"width":758,"height":12}},{"id":"02189eb8-71b8-4994-811b-703706a5d9d9","block_type":"box","text":"capital markets or certain industries in those countries. Capital controls and/or sanctions may include","page_number":438,"box":{"x":116,"y":397,"width":746,"height":12}},{"id":"1c419031-2a59-4b6a-b2ff-f544cdbab0f2","block_type":"box","text":"the prohibition of, or restrictions on, the ability to own or transfer currency, securities, derivatives or","page_number":438,"box":{"x":116,"y":413,"width":730,"height":12}},{"id":"49d7f8ca-315a-40fa-9e68-74f97adad9a7","block_type":"box","text":"other assets and may also include retaliatory actions of one government against another government,","page_number":438,"box":{"x":116,"y":428,"width":752,"height":12}},{"id":"64891857-53aa-4b1d-9170-b6318649c9ab","block_type":"box","text":"such as seizure of assets. Any of these actions could severely impair a Fund’s ability to purchase, sell,","page_number":438,"box":{"x":116,"y":444,"width":758,"height":12}},{"id":"05ae47ac-5348-482f-8c22-9d3dbafd996b","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the","page_number":438,"box":{"x":116,"y":459,"width":738,"height":12}},{"id":"9c7acb05-e902-49eb-b9b7-93cc3a59949e","block_type":"box","text":"ability to transfer the Fund’s assets or income back into the United States, and could negatively impact","page_number":438,"box":{"x":116,"y":475,"width":758,"height":12}},{"id":"dbbd3e44-5f54-4b69-86c6-578f6aa2a6b8","block_type":"box","text":"the value and/or liquidity of such assets or otherwise adversely affect a Fund’s operations, causing the","page_number":438,"box":{"x":116,"y":490,"width":757,"height":12}},{"id":"e533a7ee-54c8-42b4-b8c7-c0258447df47","block_type":"box","text":"Fund to decline in value. Other potential foreign market risks include exchange controls, difficulties in","page_number":438,"box":{"x":117,"y":506,"width":745,"height":12}},{"id":"a51629ee-7397-4c63-83ad-32bf4c987f7f","block_type":"box","text":"pricing securities, defaults on foreign government securities, difficulties in enforcing favorable legal","page_number":438,"box":{"x":117,"y":521,"width":727,"height":12}},{"id":"ba76628b-f940-400d-bf31-2ecdfca08dae","block_type":"box","text":"judgments in foreign courts, and political and social conditions, such as diplomatic relations,","page_number":438,"box":{"x":115,"y":537,"width":680,"height":12}},{"id":"f1b09c8a-b20f-49f1-bae1-803ec7b36a36","block_type":"box","text":"confiscatory taxation, expropriation, limitation on the removal of funds or assets, or imposition of (or","page_number":438,"box":{"x":116,"y":552,"width":735,"height":12}},{"id":"9dda1546-2b8e-40c8-8b17-e9b41567cbf6","block_type":"box","text":"change in) exchange control regulations. Legal remedies available to investors in certain foreign","page_number":438,"box":{"x":116,"y":568,"width":711,"height":12}},{"id":"74df0133-8d3d-4b34-a159-94492630a5a2","block_type":"box","text":"countries may be less extensive than those available to investors in the United States or other foreign","page_number":438,"box":{"x":116,"y":583,"width":751,"height":12}},{"id":"226543ff-ada7-4bc1-8880-1af3b2f5332d","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the","page_number":438,"box":{"x":116,"y":599,"width":752,"height":12}},{"id":"4022227b-5aae-493f-b54c-6fea57c815d5","block_type":"box","text":"United States or abroad could result in appreciation or depreciation of portfolio securities and could","page_number":438,"box":{"x":117,"y":614,"width":731,"height":12}},{"id":"43d16dad-63cf-4940-9337-a4d14c7b30e7","block_type":"box","text":"favorably or adversely affect a Fund’s operations.","page_number":438,"box":{"x":116,"y":630,"width":368,"height":12}},{"id":"119580b5-f8c1-47ad-9088-a08b83b66677","block_type":"box","text":"Foreign Economy Risk.","page_number":438,"box":{"x":116,"y":661,"width":172,"height":12}},{"id":"b398023c-2874-47de-8c34-490677ff6895","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with","page_number":438,"box":{"x":295,"y":661,"width":579,"height":12}},{"id":"a188f0ef-197f-48ed-af57-4c9221d69546","block_type":"box","text":"that of the United States with respect to such issues as growth of gross national product, reinvestment","page_number":438,"box":{"x":116,"y":676,"width":759,"height":12}},{"id":"9a2f5810-7da9-432f-a819-4a12456a1cfe","block_type":"box","text":"of capital, resources, and balance of payments position. Certain such economies may rely heavily on","page_number":438,"box":{"x":116,"y":692,"width":748,"height":12}},{"id":"56d19130-3dbc-40b2-be62-9b9178d08a08","block_type":"box","text":"particular industries or foreign capital and are more vulnerable to diplomatic developments, the","page_number":438,"box":{"x":117,"y":707,"width":702,"height":12}},{"id":"b55b6600-eb82-4df8-a9ba-125100573ca9","block_type":"box","text":"imposition of economic sanctions against a particular country or countries, changes in international","page_number":438,"box":{"x":117,"y":723,"width":731,"height":12}},{"id":"1aa4faef-73fc-49ca-866b-5498664adbde","block_type":"box","text":"trading patterns, trade barriers, and other protectionist or retaliatory measures.","page_number":438,"box":{"x":116,"y":738,"width":582,"height":12}},{"id":"3a238d5f-c020-449a-ab5e-c3893ac14ff5","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":438,"box":{"x":117,"y":769,"width":257,"height":12}},{"id":"7633414d-7db1-4ee5-a3c2-db462e91287a","block_type":"box","text":"Because foreign securities generally are denominated and pay","page_number":438,"box":{"x":382,"y":769,"width":464,"height":12}},{"id":"2ad6884f-cceb-465b-960d-757c04c549c6","block_type":"box","text":"dividends or interest in foreign currencies, the value of a Fund that invests in foreign securities as","page_number":438,"box":{"x":116,"y":785,"width":721,"height":12}},{"id":"9aa02f8f-06ed-4942-8df2-e1b4914c1d00","block_type":"box","text":"measured in U.S. dollars will be affected favorably or unfavorably by changes in exchange rates.","page_number":438,"box":{"x":117,"y":800,"width":715,"height":12}},{"id":"7227a8df-dbe3-4d27-86b0-33af61d3852c","block_type":"box","text":"Generally, when the U.S. dollar rises in value against a foreign currency, a security denominated in","page_number":438,"box":{"x":117,"y":816,"width":733,"height":12}},{"id":"125787b5-7af0-4962-8203-0d03ea00b8da","block_type":"box","text":"that currency loses value because the currency is worth fewer U.S. dollars. Conversely, when the U.S.","page_number":438,"box":{"x":116,"y":831,"width":765,"height":12}},{"id":"ae60dc60-015f-46e4-8bf6-eeba6e358ee8","block_type":"box","text":"dollar decreases in value against a foreign currency, a security denominated in that currency gains","page_number":438,"box":{"x":116,"y":847,"width":737,"height":12}},{"id":"1c5a421b-b2f9-4081-87c1-5821b94e409d","block_type":"box","text":"value because the currency is worth more U.S. dollars. This risk, generally known as “currency risk,”","page_number":438,"box":{"x":116,"y":862,"width":749,"height":12}},{"id":"89c584aa-9f88-4a3a-826d-cbba224cf3a3","block_type":"box","text":"means that a stronger U.S. dollar will reduce returns for U.S. investors while a weak U.S. dollar will","page_number":438,"box":{"x":117,"y":878,"width":738,"height":12}},{"id":"25be3f21-88a8-4921-947d-7bf82b5a492d","block_type":"box","text":"II-40","page_number":438,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"c56a0340-f5a3-47b8-97c4-f6d30c9b2789","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":438,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3fadf38b-c8ab-4759-b060-0c6a6cc65dbc","block_type":"box","text":"increase those returns. Currency exchange rates can also be affected unpredictably by intervention by","page_number":439,"box":{"x":117,"y":87,"width":764,"height":12}},{"id":"897a550c-b8ad-4633-b7b4-c07e448b4cf4","block_type":"box","text":"U.S. or foreign governments or central banks, or the failure to intervene, or buy currency controls or","page_number":439,"box":{"x":117,"y":102,"width":743,"height":13}},{"id":"5086a046-cb80-48f5-bd62-13880667bfc5","block_type":"box","text":"political developments in the United States or abroad.","page_number":439,"box":{"x":117,"y":118,"width":402,"height":12}},{"id":"67124847-6183-4d6b-93ac-c9ed74cadbda","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards. Many foreign governments","page_number":439,"box":{"x":117,"y":149,"width":697,"height":12}},{"id":"52a6940b-e621-4c04-98f1-32a35c883790","block_type":"box","text":"supervise and regulate stock exchanges, brokers and the sale of securities less than does the United","page_number":439,"box":{"x":116,"y":165,"width":756,"height":12}},{"id":"42e1119e-eb4e-4823-840d-3fd6780f1e68","block_type":"box","text":"States. Some countries may not have laws to protect investors comparable to the U.S. securities laws.","page_number":439,"box":{"x":116,"y":180,"width":765,"height":12}},{"id":"5978a87f-7449-474c-9383-681359521ac2","block_type":"box","text":"For example, some foreign countries may have no laws or rules against insider trading. Insider trading","page_number":439,"box":{"x":117,"y":196,"width":762,"height":12}},{"id":"c3793cea-25e5-4ad2-a68b-749ac2e31176","block_type":"box","text":"occurs when a person buys or sells a company’s securities based on nonpublic information about that","page_number":439,"box":{"x":116,"y":211,"width":760,"height":12}},{"id":"5b70bebb-6c64-4649-81b9-49bbc209fff2","block_type":"box","text":"company. Accounting standards in other countries are not necessarily the same as in the United","page_number":439,"box":{"x":116,"y":227,"width":719,"height":12}},{"id":"81191ba6-4af5-43b0-8ff1-96bf1f2f985c","block_type":"box","text":"States. If the accounting standards in another country do not require as much detail as U.S. accounting","page_number":439,"box":{"x":116,"y":242,"width":771,"height":12}},{"id":"f0824208-d870-4096-8e90-7ba4f3d3d8bb","block_type":"box","text":"standards, it may be harder for Fund management to completely and accurately determine a","page_number":439,"box":{"x":116,"y":258,"width":691,"height":12}},{"id":"7f937452-9eaa-4e10-9927-a8b00b274df5","block_type":"box","text":"company’s financial condition. In addition, the U.S. Government has from time to time in the past","page_number":439,"box":{"x":116,"y":273,"width":722,"height":12}},{"id":"5f0c62ea-2d80-4644-abe4-8dcdd115d174","block_type":"box","text":"imposed restrictions, through penalties and otherwise, on foreign investments by U.S. investors such","page_number":439,"box":{"x":117,"y":289,"width":752,"height":12}},{"id":"dd5639d0-9712-417c-b15f-f3d6a0e3258d","block_type":"box","text":"as the Fund. If such restrictions should be reinstituted, it might become necessary for the Fund to","page_number":439,"box":{"x":116,"y":304,"width":727,"height":12}},{"id":"8bbc3836-5a5c-4417-b21b-c4336f2c5b83","block_type":"box","text":"invest all or substantially all of its assets in U.S. securities. Also, brokerage commissions and other","page_number":439,"box":{"x":117,"y":320,"width":737,"height":12}},{"id":"478efcab-bf31-49c6-91ca-c05d1d415285","block_type":"box","text":"costs of buying or selling securities often are higher in foreign countries than they are in the United","page_number":439,"box":{"x":116,"y":335,"width":736,"height":12}},{"id":"e8fe5678-ecec-4ee3-805b-4d2bb0d1c88b","block_type":"box","text":"States. This reduces the amount the Fund can earn on its investments.","page_number":439,"box":{"x":116,"y":351,"width":532,"height":9}},{"id":"1dc1031f-d1cc-41cd-905f-95b8bb950f03","block_type":"box","text":"Certain Risks of Holding Fund Assets Outside the United States.","page_number":439,"box":{"x":117,"y":382,"width":477,"height":12}},{"id":"c6ab3e5e-05f0-4575-86cd-0115b73e94e7","block_type":"box","text":"A Fund generally holds its foreign","page_number":439,"box":{"x":596,"y":382,"width":259,"height":12}},{"id":"eaef9418-697a-4601-beae-e268311732c4","block_type":"box","text":"securities and cash in foreign banks and securities depositories. Some foreign banks and securities","page_number":439,"box":{"x":116,"y":397,"width":743,"height":12}},{"id":"12f8e083-abb0-4403-bd00-dd091cf20a56","block_type":"box","text":"depositories may be recently organized or new to the foreign custody business. In addition, there may","page_number":439,"box":{"x":116,"y":413,"width":760,"height":12}},{"id":"557628d4-0444-4961-9c50-bfc85087f0f2","block_type":"box","text":"be limited or no regulatory oversight over their operations. Also, the laws of certain countries may put","page_number":439,"box":{"x":117,"y":428,"width":754,"height":12}},{"id":"e1060e0c-6b4f-45ea-ae9a-c08033525325","block_type":"box","text":"limits on a Fund’s ability to recover its assets if a foreign bank or depository or issuer of a security or","page_number":439,"box":{"x":117,"y":444,"width":747,"height":12}},{"id":"f3ee01f7-4ad3-46af-8aeb-2108ab8c1385","block_type":"box","text":"any of their agents goes bankrupt. In addition, it is often more expensive for a Fund to buy, sell and","page_number":439,"box":{"x":116,"y":459,"width":741,"height":12}},{"id":"867a2304-4ba3-4c67-a8e1-ac429260a5d0","block_type":"box","text":"hold securities in certain foreign markets than in the United States. The increased expense of investing","page_number":439,"box":{"x":117,"y":475,"width":768,"height":12}},{"id":"cb68d222-b611-45b3-8b87-9c4571447ca1","block_type":"box","text":"in foreign markets reduces the amount a Fund can earn on its investments and typically results in a","page_number":439,"box":{"x":117,"y":490,"width":741,"height":12}},{"id":"2c56ddd1-88ac-4476-8fb1-498bd36c515f","block_type":"box","text":"higher operating expense ratio for the Fund as compared to investment companies that invest only in","page_number":439,"box":{"x":117,"y":506,"width":754,"height":12}},{"id":"64ac349d-583c-41d1-b98e-e1eb7bc4f3c8","block_type":"box","text":"the United States.","page_number":439,"box":{"x":116,"y":521,"width":138,"height":10}},{"id":"9195c4cc-e60c-451c-8102-9d4bb660f336","block_type":"box","text":"Publicly Available Information.","page_number":439,"box":{"x":116,"y":552,"width":222,"height":12}},{"id":"ad3ff7f0-dc3b-488a-b7f1-1a25e2a70fcc","block_type":"box","text":"In general, less information is publicly available with respect to foreign","page_number":439,"box":{"x":340,"y":552,"width":529,"height":12}},{"id":"7ffe9c7e-41a5-498a-994c-a6ed66908af9","block_type":"box","text":"issuers than is available with respect to U.S. companies. Most foreign companies are also not subject","page_number":439,"box":{"x":117,"y":568,"width":758,"height":12}},{"id":"6c49cc39-6fa6-48c3-92a1-b963f9a17a16","block_type":"box","text":"to the uniform accounting and financial reporting requirements applicable to issuers in the United","page_number":439,"box":{"x":116,"y":583,"width":723,"height":12}},{"id":"389a82d9-1cb6-4fec-babd-482aee4ccc73","block_type":"box","text":"States. While the volume of transactions effected on foreign stock exchanges has increased in recent","page_number":439,"box":{"x":116,"y":599,"width":758,"height":12}},{"id":"d0700dcc-19fd-42ef-b779-d29ae28fcf03","block_type":"box","text":"years, it remains appreciably below that of the New York Stock Exchange. Accordingly, a Fund’s","page_number":439,"box":{"x":116,"y":614,"width":721,"height":12}},{"id":"ca37747e-b67b-47e1-8d11-63c09957e0de","block_type":"box","text":"foreign investments may be less liquid than, and their prices may be more volatile than, comparable","page_number":439,"box":{"x":116,"y":630,"width":745,"height":12}},{"id":"bef56eca-d24c-420a-8435-061a70bce6d6","block_type":"box","text":"investments in securities in U.S. companies. In addition, there is generally less government supervision","page_number":439,"box":{"x":117,"y":645,"width":771,"height":12}},{"id":"7da6ba2a-29c0-4c2d-bff9-16ab8dfd3075","block_type":"box","text":"and regulation of securities exchanges, brokers and issuers in foreign countries than in the United","page_number":439,"box":{"x":116,"y":661,"width":726,"height":12}},{"id":"866d4a20-30c0-45df-a254-5de29986e90c","block_type":"box","text":"States.","page_number":439,"box":{"x":116,"y":676,"width":51,"height":10}},{"id":"f4877849-ba81-4dfd-92c9-7a3e5fa286f9","block_type":"box","text":"Settlement Risk.","page_number":439,"box":{"x":117,"y":707,"width":120,"height":10}},{"id":"766b541b-9bdb-44cf-9de3-32780544b6a5","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly","page_number":439,"box":{"x":244,"y":707,"width":606,"height":12}},{"id":"38ffaea2-afd1-4832-ace5-0fe9694d94bb","block_type":"box","text":"from those in the United States. Supervisory authorities may also be unable to apply standards which","page_number":439,"box":{"x":116,"y":723,"width":751,"height":12}},{"id":"1d99a873-bd13-47b8-85ca-311eaab8b359","block_type":"box","text":"are comparable with those in the United States. Foreign settlement procedures and trade regulations","page_number":439,"box":{"x":116,"y":738,"width":749,"height":12}},{"id":"2b6f7491-fb25-4105-ae01-4c432fd58067","block_type":"box","text":"also may involve certain risks (such as delays in payment for or delivery of securities) not typically","page_number":439,"box":{"x":116,"y":754,"width":727,"height":12}},{"id":"d2f98b3a-089e-46e5-9aaa-3790e0b62376","block_type":"box","text":"generated by the settlement of U.S. investments.","page_number":439,"box":{"x":116,"y":769,"width":362,"height":12}},{"id":"255715c2-12bf-4cfc-a09f-184e6deb37e2","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable,","page_number":439,"box":{"x":117,"y":800,"width":704,"height":12}},{"id":"fdda6c70-bebc-4a17-a1da-a3afb6ff8593","block_type":"box","text":"increasing the risk of delayed settlements or losses of security certificates in markets that still rely on","page_number":439,"box":{"x":117,"y":816,"width":744,"height":12}},{"id":"016f1db6-59ff-491e-bcf7-0d42c892d857","block_type":"box","text":"physical settlement. Settlements in certain foreign countries at times have not kept pace with the","page_number":439,"box":{"x":117,"y":831,"width":720,"height":12}},{"id":"bf029826-8873-43f8-ad70-a94c2352fd60","block_type":"box","text":"number of securities transactions; these problems may make it difficult for a Fund to carry out","page_number":439,"box":{"x":117,"y":847,"width":698,"height":12}},{"id":"5f977a75-b119-4368-8a5d-8385f63b705d","block_type":"box","text":"transactions. If a Fund cannot settle or is delayed in settling a purchase of securities, it may miss","page_number":439,"box":{"x":116,"y":862,"width":723,"height":12}},{"id":"78a1c5be-adb7-4aa3-a697-d1962c94f795","block_type":"box","text":"attractive investment opportunities and certain of its assets may be uninvested with no return earned","page_number":439,"box":{"x":116,"y":878,"width":751,"height":12}},{"id":"6e8302df-ef75-41f3-bc81-3aed0c26fd48","block_type":"box","text":"II-41","page_number":439,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"1083279e-3faf-4313-beba-8d35f1d74c9f","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":439,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"28b6d801-1a5d-4060-bed8-c5c831ddbc7c","block_type":"box","text":"thereon for some period. If a Fund cannot settle or is delayed in settling a sale of securities, it may lose","page_number":440,"box":{"x":116,"y":87,"width":769,"height":12}},{"id":"bf463103-d59e-4255-bfa5-6955cab74a37","block_type":"box","text":"money if the value of the security then declines or, if it has contracted to sell the security to another","page_number":440,"box":{"x":117,"y":102,"width":739,"height":13}},{"id":"71dc4dee-25f9-4678-9f98-6adeb88869c3","block_type":"box","text":"party, the Fund could be liable to that party for any losses incurred.","page_number":440,"box":{"x":117,"y":118,"width":501,"height":12}},{"id":"6889204e-84f5-4d69-adf3-b6098c7ea670","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing","page_number":440,"box":{"x":117,"y":149,"width":720,"height":12}},{"id":"9e9ae32d-9709-4fe3-b3ca-c323708ea588","block_type":"box","text":"claims may arise in respect of securities held by or to be transferred to a Fund. Compensation","page_number":440,"box":{"x":116,"y":165,"width":703,"height":12}},{"id":"2c2c4b80-eadf-4382-91b3-95813690efee","block_type":"box","text":"schemes may not exist or may otherwise be limited or inadequate to meet the Fund’s claims in case of","page_number":440,"box":{"x":116,"y":180,"width":766,"height":12}},{"id":"632b7b77-e42b-4a45-aa6a-b0460325fbfa","block_type":"box","text":"such event.","page_number":440,"box":{"x":116,"y":196,"width":90,"height":9}},{"id":"2e58587b-9fa6-4315-bc20-d69589367e6d","block_type":"box","text":"Sovereign Debt.","page_number":440,"box":{"x":117,"y":227,"width":118,"height":12}},{"id":"6a4a53c0-6626-4521-91e1-d4c69902b9e0","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental","page_number":440,"box":{"x":236,"y":227,"width":616,"height":12}},{"id":"7217dd3b-88b2-4bb1-892b-f311bf272d82","block_type":"box","text":"entity that controls the repayment of sovereign debt may not be able or willing to repay the principal","page_number":440,"box":{"x":116,"y":242,"width":743,"height":12}},{"id":"78703928-c4c8-48d0-8ce7-3925a9ab06f7","block_type":"box","text":"and/or interest when due in accordance with the terms of such debt. A governmental entity’s","page_number":440,"box":{"x":116,"y":258,"width":689,"height":12}},{"id":"3ed3ab77-f188-4cb7-a1cb-9ea67060143c","block_type":"box","text":"willingness or ability to repay principal and interest due in a timely manner may be affected by, among","page_number":440,"box":{"x":116,"y":273,"width":761,"height":12}},{"id":"595ef05e-0048-4ce2-8b73-78f155a66d80","block_type":"box","text":"other factors, its cash flow situation, the extent of its foreign reserves, the availability of sufficient","page_number":440,"box":{"x":116,"y":289,"width":721,"height":12}},{"id":"84a00c09-e1f1-41b3-b334-5fa0690d9b28","block_type":"box","text":"foreign exchange on the date a payment is due, the relative size of the debt service burden to the","page_number":440,"box":{"x":116,"y":304,"width":728,"height":12}},{"id":"7eab94e1-5bc9-4932-a09b-436600c565c7","block_type":"box","text":"economy as a whole, the governmental entity’s policy towards the International Monetary Fund and the","page_number":440,"box":{"x":116,"y":320,"width":770,"height":12}},{"id":"f04dc4a4-40ad-4aef-9e21-1582a2598c00","block_type":"box","text":"political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":440,"box":{"x":117,"y":335,"width":764,"height":12}},{"id":"fcdd3711-ac86-4b79-a68e-7c215b1fb488","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others","page_number":440,"box":{"x":116,"y":351,"width":738,"height":12}},{"id":"88925147-08f4-4385-9afb-fb85bd90fda7","block_type":"box","text":"abroad to reduce principal and interest arrearages on their debt. The commitment on the part of these","page_number":440,"box":{"x":116,"y":366,"width":761,"height":12}},{"id":"497dbc8b-1748-43c0-911e-8393a2978f6a","block_type":"box","text":"governments, agencies and others to make such disbursements may be conditioned on the","page_number":440,"box":{"x":116,"y":382,"width":684,"height":12}},{"id":"5abef7c4-45f7-440a-be1c-bf3d17454b34","block_type":"box","text":"implementation of economic reforms and/or economic performance and the timely service of such","page_number":440,"box":{"x":117,"y":397,"width":730,"height":12}},{"id":"8854084c-8755-4692-9763-fea699e4a26f","block_type":"box","text":"debtor’s obligations. Failure to implement such reforms, achieve such levels of economic performance","page_number":440,"box":{"x":116,"y":413,"width":763,"height":12}},{"id":"c0fc5494-540e-45e2-8078-2ae2368b7fc6","block_type":"box","text":"or repay principal or interest when due may result in the cancellation of such third parties’","page_number":440,"box":{"x":116,"y":428,"width":668,"height":12}},{"id":"0122e18a-e14d-4635-aa34-7474ab1c7b05","block_type":"box","text":"commitments to lend funds to the governmental entity, which may further impair such debtor’s ability or","page_number":440,"box":{"x":116,"y":444,"width":769,"height":12}},{"id":"ad446faf-6686-4708-92ba-b2c6c6e011e1","block_type":"box","text":"willingness to timely service its debts. Consequently, governmental entities may default on their","page_number":440,"box":{"x":116,"y":459,"width":713,"height":12}},{"id":"f95ce2a8-a028-43dd-993e-980ec09bbef8","block_type":"box","text":"sovereign debt.","page_number":440,"box":{"x":116,"y":475,"width":119,"height":12}},{"id":"bfc8d1c5-0fc2-4ed3-a328-df232301a776","block_type":"box","text":"Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to","page_number":440,"box":{"x":117,"y":506,"width":730,"height":12}},{"id":"7df8dabe-29b4-45eb-8b9c-ca946f02de6e","block_type":"box","text":"extend further loans to governmental entities. In the event of a default by a governmental entity, there","page_number":440,"box":{"x":116,"y":521,"width":758,"height":12}},{"id":"fdbece9c-5277-4c1a-8bff-a30e2a9206eb","block_type":"box","text":"may be few or no effective legal remedies for collecting on such debt.","page_number":440,"box":{"x":117,"y":537,"width":519,"height":12}},{"id":"f1787d22-e14f-4192-8f66-ef6699563657","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":440,"box":{"x":118,"y":568,"width":230,"height":12}},{"id":"935657a7-3ea3-4741-a133-d0c443d8c3e1","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on","page_number":440,"box":{"x":349,"y":568,"width":475,"height":12}},{"id":"12bfaee2-d455-496a-b21c-95cdbd8d3347","block_type":"box","text":"dividend and interest income (if any) received from issuers in certain countries and capital gains on the","page_number":440,"box":{"x":116,"y":583,"width":768,"height":12}},{"id":"476ca3c3-fc3c-4090-b0f6-e5bbaabc7321","block_type":"box","text":"disposition of stocks or securities where such withholding tax reclaim is possible. Whether or when a","page_number":440,"box":{"x":116,"y":599,"width":751,"height":12}},{"id":"f43301a3-ad05-4e19-baaf-79af1d36c786","block_type":"box","text":"Fund will receive a withholding tax refund is within the control of the tax authorities in such countries.","page_number":440,"box":{"x":117,"y":614,"width":751,"height":12}},{"id":"0d87bb92-1dd5-406e-9486-c0d7392c0c7e","block_type":"box","text":"Where a Fund expects to recover withholding taxes, the net asset value of the Fund generally includes","page_number":440,"box":{"x":116,"y":630,"width":767,"height":12}},{"id":"6428eee6-d10b-4c97-a496-bc8da5b8d98f","block_type":"box","text":"accruals for such tax refunds. Each Fund regularly evaluates the probability of recovery. If the","page_number":440,"box":{"x":116,"y":645,"width":701,"height":12}},{"id":"2cc0cedb-e17b-471c-882b-b7a6cc36fb5f","block_type":"box","text":"likelihood of recovery materially decreases, due to, for example, a change in tax regulation or approach","page_number":440,"box":{"x":117,"y":661,"width":765,"height":12}},{"id":"0c7a7e09-f18a-4ac5-a6e8-e3cfdbe1a559","block_type":"box","text":"in the foreign country, accruals in a Fund’s net asset value for such refunds may be written down","page_number":440,"box":{"x":117,"y":676,"width":716,"height":12}},{"id":"5670399a-d453-4dcd-902b-cb288125782c","block_type":"box","text":"partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the","page_number":440,"box":{"x":117,"y":692,"width":755,"height":12}},{"id":"7e5aa297-aaad-4340-b910-13a43ceb7a78","block_type":"box","text":"time an accrual is written down will bear the impact of the resulting reduction in net asset value","page_number":440,"box":{"x":116,"y":707,"width":703,"height":12}},{"id":"c4d4cd86-a638-4d4d-aabe-c58409602ebe","block_type":"box","text":"regardless of whether they were shareholders during the accrual period. Conversely, if a Fund receives","page_number":440,"box":{"x":117,"y":723,"width":765,"height":12}},{"id":"e28533ed-f341-4d81-8122-29d3044aaf2f","block_type":"box","text":"a tax refund that has not been previously accrued, shareholders in the Fund at the time of the","page_number":440,"box":{"x":116,"y":738,"width":694,"height":12}},{"id":"ddedc2af-5324-459b-a54b-f08ff7ca9cc0","block_type":"box","text":"successful recovery will benefit from the resulting increase in the Fund’s net asset value. Shareholders","page_number":440,"box":{"x":116,"y":754,"width":762,"height":12}},{"id":"a42f70b9-bd72-49bc-8d0d-de9cba451d62","block_type":"box","text":"who sold their shares prior to such time will not benefit from such increase in the Fund’s net asset","page_number":440,"box":{"x":116,"y":769,"width":725,"height":12}},{"id":"185e709b-aa2e-43a1-a41f-c29ffb628027","block_type":"box","text":"value.","page_number":440,"box":{"x":116,"y":785,"width":43,"height":9}},{"id":"7025552c-a56c-4790-8d88-9a276085b2d6","block_type":"box","text":"U.S. Economic Trading Partners Risk.","page_number":440,"box":{"x":117,"y":816,"width":280,"height":12}},{"id":"da44dae5-edcf-4f10-a2d1-bec088d5bf13","block_type":"box","text":"The United States is a significant, and in some cases the most","page_number":440,"box":{"x":404,"y":816,"width":464,"height":12}},{"id":"b89bacd8-ceec-4156-9380-6a3cccfb691b","block_type":"box","text":"significant, trading partner of, or foreign investor in, certain countries in which a Fund may invest. As a","page_number":440,"box":{"x":116,"y":831,"width":762,"height":12}},{"id":"4804681f-fde8-4566-9224-b92e93d255d4","block_type":"box","text":"result, economic conditions of such countries may be particularly affected by changes in the U.S.","page_number":440,"box":{"x":117,"y":847,"width":723,"height":12}},{"id":"dfafe2dd-4a7b-4473-b602-5a90818ef7eb","block_type":"box","text":"economy. A decrease in U.S. imports or exports, new trade and financial regulations or tariffs, changes","page_number":440,"box":{"x":116,"y":862,"width":770,"height":12}},{"id":"227c0e79-9655-4f0b-985b-b64cc0379ab9","block_type":"box","text":"in the U.S. dollar exchange rate or an economic slowdown in the United States may have a material","page_number":440,"box":{"x":117,"y":878,"width":745,"height":12}},{"id":"f17b7521-a17d-4f40-8e48-9cafaa0e90ef","block_type":"box","text":"II-42","page_number":440,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"508c49f3-cc4f-489f-9a76-4d891ae78706","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":440,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"99aee199-a493-488e-983e-9f7a6af64c00","block_type":"box","text":"adverse effect on a country’s economic conditions and, as a result, securities to which the Fund has","page_number":441,"box":{"x":116,"y":87,"width":746,"height":12}},{"id":"b4a32dca-bc78-4f69-b4a6-1f2e6e15b7b7","block_type":"box","text":"exposure. Circumstances could arise that could prevent the timely payment of interest or principal on","page_number":441,"box":{"x":116,"y":102,"width":754,"height":13}},{"id":"55395498-dd6a-4944-ba12-eaf1e55a3f68","block_type":"box","text":"U.S. Government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result","page_number":441,"box":{"x":117,"y":118,"width":760,"height":12}},{"id":"1885ef20-6da8-48ac-aeda-987cf2d4ca1d","block_type":"box","text":"in substantial negative consequences for the U.S. economy and the global financial system.","page_number":441,"box":{"x":117,"y":134,"width":685,"height":12}},{"id":"48463bb1-fb27-4f03-b3e3-cdabd174f0fc","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including","page_number":441,"box":{"x":116,"y":166,"width":745,"height":12}},{"id":"01f74461-8829-45a4-83b8-09a1a200f0a5","block_type":"box","text":"traditional allies, such as certain European countries, and historical adversaries, such as North Korea,","page_number":441,"box":{"x":116,"y":182,"width":761,"height":11}},{"id":"8976869a-2344-4374-a058-5d4eb916acc4","block_type":"box","text":"Iran, China and Russia. If these relations were to worsen, it could adversely affect U.S. issuers as well","page_number":441,"box":{"x":117,"y":197,"width":763,"height":12}},{"id":"a3b017d6-7df5-47ee-a81b-36f4131da765","block_type":"box","text":"as non-U.S. issuers that rely on the United States for trade. The United States has also experienced","page_number":441,"box":{"x":116,"y":212,"width":748,"height":12}},{"id":"ac2259b4-a83a-4942-b44c-14b835122d29","block_type":"box","text":"increased internal unrest and discord. If these trends were to continue, it may have an adverse impact","page_number":441,"box":{"x":117,"y":228,"width":761,"height":12}},{"id":"3d48dd17-7d14-4a1e-a6c4-c58aa5f27d24","block_type":"box","text":"on the U.S. economy and many of the issuers in which a Fund may invest.","page_number":441,"box":{"x":116,"y":243,"width":557,"height":12}},{"id":"a352c03f-a9b5-47dc-924f-1a3f0ce36843","block_type":"box","text":"Funding Agreements.","page_number":441,"box":{"x":116,"y":276,"width":171,"height":12}},{"id":"3d86240a-82d9-4193-939d-9022a2f1047f","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar","page_number":441,"box":{"x":289,"y":276,"width":561,"height":12}},{"id":"134ae5d2-5278-47bf-bb0c-47a2216acb6b","block_type":"box","text":"funding agreements. In connection with these investments, a Fund makes cash contributions to a","page_number":441,"box":{"x":116,"y":291,"width":727,"height":12}},{"id":"ae684e22-43d2-4989-a269-438eb1e6785a","block_type":"box","text":"deposit fund of an insurance company’s general account. The insurance company then credits to the","page_number":441,"box":{"x":116,"y":307,"width":753,"height":12}},{"id":"6f3ddf5d-d393-4d82-bf9b-7c2cdc93bc14","block_type":"box","text":"Fund on a monthly basis guaranteed interest, which is based on an index. The funding agreements","page_number":441,"box":{"x":117,"y":322,"width":740,"height":12}},{"id":"79af4771-dc4e-4318-8743-85ea9f4a4c94","block_type":"box","text":"provide that this guaranteed interest will not be less than a certain minimum rate. The purchase price","page_number":441,"box":{"x":117,"y":338,"width":753,"height":12}},{"id":"7490f2a0-e5f7-4326-8cab-ee3a74007d03","block_type":"box","text":"paid for a funding agreement becomes part of the general assets of the insurance company, and the","page_number":441,"box":{"x":117,"y":353,"width":749,"height":12}},{"id":"a0ffffb9-4885-4e0b-a1a5-65c8339dff0f","block_type":"box","text":"contract is paid from the general assets of the insurance company. Generally, funding agreements are","page_number":441,"box":{"x":116,"y":369,"width":764,"height":12}},{"id":"902cdb88-61d1-4ce4-a99b-7409436ce45f","block_type":"box","text":"not assignable or transferable without the permission of the issuing insurance companies, and an","page_number":441,"box":{"x":117,"y":384,"width":726,"height":12}},{"id":"59bdffa1-008a-495c-8277-69ada878cdb4","block_type":"box","text":"active secondary market in some funding agreements does not currently exist.","page_number":441,"box":{"x":116,"y":400,"width":586,"height":12}},{"id":"5028e3da-4a43-409f-8d5f-a19500728a22","block_type":"box","text":"Guarantees","page_number":441,"box":{"x":117,"y":432,"width":91,"height":10}},{"id":"966832f9-8089-45d8-ba04-d2245e4a319d","block_type":"box","text":".","page_number":441,"box":{"x":209,"y":440,"width":3,"height":2}},{"id":"82da68cc-c2c1-45e0-aa53-10590bcb5f84","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate","page_number":441,"box":{"x":213,"y":432,"width":660,"height":12}},{"id":"3d1fae3b-74e2-410d-aaf3-0887c8125467","block_type":"box","text":"from the issuer of the security. Generally, the guarantor of a security (often an affiliate of the issuer) will","page_number":441,"box":{"x":116,"y":448,"width":771,"height":12}},{"id":"3b62b289-f698-4aaa-93d3-1328c2731e84","block_type":"box","text":"fulfill an issuer’s payment obligations under a security if the issuer is unable to do so.","page_number":441,"box":{"x":116,"y":463,"width":634,"height":12}},{"id":"5c3f9fde-dbc9-4e58-9c38-0b442c98822e","block_type":"box","text":"Illiquid Investments.","page_number":441,"box":{"x":116,"y":496,"width":157,"height":11}},{"id":"cd1f459a-7626-49cd-be82-906740eb914d","block_type":"box","text":"Each Fund may not acquire any illiquid in","page_number":441,"box":{"x":274,"y":496,"width":304,"height":12}},{"id":"b2d2bb6c-4f81-413f-9cb5-12294fca5964","block_type":"box","text":"vestment if, immediately after the","page_number":441,"box":{"x":579,"y":496,"width":246,"height":12}},{"id":"6e210ae2-477d-47df-8552-a1b9b7f158a6","block_type":"box","text":"acquisition, a Fund would have invested more than 15% of","page_number":441,"box":{"x":116,"y":511,"width":431,"height":12}},{"id":"8e82821a-b4f4-4cd1-9a62-f5659b8957b1","block_type":"box","text":"its net assets in illiquid investments. An illiquid","page_number":441,"box":{"x":548,"y":511,"width":338,"height":12}},{"id":"ce424f44-e1aa-48d1-9c99-af05681b51d8","block_type":"box","text":"investment is any investment that a Fund reasonably","page_number":441,"box":{"x":117,"y":527,"width":388,"height":12}},{"id":"a3794f34-b15d-4edf-82dd-6accbac4fb2a","block_type":"box","text":"expects cannot be sold or disposed of in current","page_number":441,"box":{"x":505,"y":527,"width":354,"height":11}},{"id":"e2bbfb9b-86a5-4141-95c3-4540b62f1ce0","block_type":"box","text":"market conditions in seven calendar days or less without","page_number":441,"box":{"x":117,"y":542,"width":410,"height":12}},{"id":"d4074bc7-b920-4146-8a00-9251f4f11c5e","block_type":"box","text":"t the sale or disposition significantly changing the","page_number":441,"box":{"x":527,"y":542,"width":356,"height":12}},{"id":"444c3983-fee5-45a0-8f55-6cfea91d3a41","block_type":"box","text":"market value of the investment. Liquid inves","page_number":441,"box":{"x":117,"y":558,"width":318,"height":12}},{"id":"80b90f86-de53-43e9-a0eb-eef1c1123d8f","block_type":"box","text":"tments may become illiquid after purchase by a Fund,","page_number":441,"box":{"x":436,"y":558,"width":395,"height":12}},{"id":"7d9e2948-8cfc-4f1d-983f-2671df0d191c","block_type":"box","text":"particularly during periods of market turmoil. There can","page_number":441,"box":{"x":117,"y":573,"width":402,"height":12}},{"id":"345ccd1d-8e8a-4b8c-9b21-8b51bc39a95f","block_type":"box","text":"be no assurance that a security or instrument that","page_number":441,"box":{"x":520,"y":573,"width":365,"height":12}},{"id":"b7640e22-df78-4b97-9e1f-3c9427f39371","block_type":"box","text":"is deemed to be liquid when purchased will continue to be liquid for as long as it is held by a Fund, and","page_number":441,"box":{"x":117,"y":589,"width":749,"height":12}},{"id":"eb5eab68-fcf2-4d7c-aa2a-1f4240a74470","block_type":"box","text":"any security or instrument held by the Fund may","page_number":441,"box":{"x":116,"y":604,"width":356,"height":12}},{"id":"b6e3d66f-7464-4847-93cc-12e65ebd81ae","block_type":"box","text":"be deemed an illiquid investment pursuant to the Fund’s","page_number":441,"box":{"x":473,"y":604,"width":411,"height":12}},{"id":"8676ae05-bd79-4806-906c-beb3e48b3832","block_type":"box","text":"liquidity risk management program. A Fund’s illiquid in","page_number":441,"box":{"x":117,"y":620,"width":391,"height":12}},{"id":"0c63f385-5c15-430f-bd4c-fba57f2884c8","block_type":"box","text":"vestments may reduce the returns of the Fund","page_number":441,"box":{"x":509,"y":620,"width":341,"height":12}},{"id":"25019c4e-d4ac-4b2a-bf8a-a7a3f9050d35","block_type":"box","text":"because it may be difficult to sell the illiquid investment","page_number":441,"box":{"x":117,"y":635,"width":397,"height":12}},{"id":"eefab19e-0539-4023-a18c-fda7a207985f","block_type":"box","text":"s at an advantageous time or price. In addition, if a","page_number":441,"box":{"x":514,"y":635,"width":373,"height":12}},{"id":"a23ec347-def0-4ac7-8aa1-09cc5f7964a3","block_type":"box","text":"Fund is limited in its ability to dispose of illiqui","page_number":441,"box":{"x":117,"y":651,"width":327,"height":12}},{"id":"e5f54209-82a1-4bf3-ac1a-53c99538dc42","block_type":"box","text":"d investments during periods when shareholders are","page_number":441,"box":{"x":445,"y":651,"width":387,"height":12}},{"id":"574b84f7-527f-453b-bbf9-70848850bdf4","block_type":"box","text":"redeeming or selling their shares or the Fund’s net","page_number":441,"box":{"x":117,"y":666,"width":365,"height":12}},{"id":"23a40135-948f-48f7-8c11-1436f7149579","block_type":"box","text":"assets otherwise shrink, the Fund will need to dispose","page_number":441,"box":{"x":487,"y":666,"width":393,"height":12}},{"id":"aa8522d2-a73f-4605-82e1-b5167bc2df90","block_type":"box","text":"of liquid securities to meet redemption requests and","page_number":441,"box":{"x":116,"y":682,"width":376,"height":12}},{"id":"3c9a7f92-dd76-4615-8706-090c9ee83925","block_type":"box","text":"illiquid securities will become a larger portion of the","page_number":441,"box":{"x":498,"y":682,"width":369,"height":12}},{"id":"eee68622-2956-4cec-abf9-49c398549f7b","block_type":"box","text":"Fund’s holdings. 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As a result, the market","page_number":445,"box":{"x":116,"y":196,"width":757,"height":12}},{"id":"22467fed-a405-47b1-b8d1-60720fa6818e","block_type":"box","text":"values of such securities will generally be more volatile than the market values of fixed-rate securities.","page_number":445,"box":{"x":116,"y":211,"width":761,"height":12}},{"id":"7090b170-d28a-4f66-ba25-e739afbbdb07","block_type":"box","text":"To seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that","page_number":445,"box":{"x":116,"y":227,"width":758,"height":12}},{"id":"7992da9e-e7cc-436b-b152-047dd4d3710c","block_type":"box","text":"have shorter-term maturities or that contain limitations on the extent to which the interest rate may","page_number":445,"box":{"x":117,"y":242,"width":732,"height":12}},{"id":"42a1eb4e-ea4b-4874-9f18-5f1d0ae25c44","block_type":"box","text":"vary. Certain investments in such obligations may be illiquid. The Manager believes that indexed and","page_number":445,"box":{"x":116,"y":258,"width":754,"height":12}},{"id":"2a966683-221e-4c05-ae91-26fff3d37d86","block_type":"box","text":"inverse floating obligations represent flexible portfolio management instruments for a Fund that allow","page_number":445,"box":{"x":117,"y":273,"width":751,"height":12}},{"id":"36283a83-2444-4f17-803a-d1228394661e","block_type":"box","text":"the Fund to seek potential investment rewards, hedge other portfolio positions or vary the degree of","page_number":445,"box":{"x":116,"y":289,"width":744,"height":12}},{"id":"c3a31693-5292-42cb-8b3a-534d0fb561b2","block_type":"box","text":"investment leverage relatively efficiently under different market conditions. A Fund may invest in","page_number":445,"box":{"x":117,"y":304,"width":716,"height":12}},{"id":"1952369f-65fc-4534-bb4f-5e6a8a4becea","block_type":"box","text":"indexed and inverse securities for hedging purposes or to seek to increase returns. When used for","page_number":445,"box":{"x":117,"y":320,"width":734,"height":12}},{"id":"af17a4ef-463e-45b4-8328-9d368d5fcd90","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Furthermore, where such a","page_number":445,"box":{"x":117,"y":335,"width":755,"height":12}},{"id":"b7aca781-44d8-4ce0-b01a-9357fccb4867","block_type":"box","text":"security includes a contingent liability, in the event of an adverse movement in the underlying index or","page_number":445,"box":{"x":116,"y":351,"width":759,"height":12}},{"id":"7c60b5ba-8511-4a99-bc51-6be429ccd88c","block_type":"box","text":"interest rate, a Fund may be required to pay substantial additional margin to maintain the position.","page_number":445,"box":{"x":117,"y":366,"width":731,"height":12}},{"id":"e2a3e931-f7b5-4c7a-a91e-2e8c64879c05","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt","page_number":445,"box":{"x":116,"y":397,"width":682,"height":12}},{"id":"f6a8f7a7-7034-4841-8df2-4d7eba9f5720","block_type":"box","text":"instruments (“inverse floaters”). Inverse floaters are securities the potential of which is inversely related","page_number":445,"box":{"x":117,"y":413,"width":768,"height":12}},{"id":"287f2570-b386-40e8-b52b-5ad8b1315c0c","block_type":"box","text":"to changes in interest rates. In general, the return on inverse floaters will decrease when short-term","page_number":445,"box":{"x":116,"y":428,"width":743,"height":12}},{"id":"6f06c5cb-1490-4801-9c1b-77bc322687fd","block_type":"box","text":"interest rates increase and increase when short-term rates decrease. Municipal tender option bonds,","page_number":445,"box":{"x":117,"y":444,"width":751,"height":12}},{"id":"cff72560-4551-40f4-aa4f-bae0a31166c0","block_type":"box","text":"both taxable and tax-exempt, which may include inverse floating rate debt instruments, (including","page_number":445,"box":{"x":117,"y":459,"width":725,"height":12}},{"id":"c27b6006-f8a3-40f7-80d1-02eb1144eeaf","block_type":"box","text":"residual interests thereon) are excluded from this 10% limitation.","page_number":445,"box":{"x":117,"y":475,"width":483,"height":12}},{"id":"d4d3df9d-8107-4736-95c1-c8514884d092","block_type":"box","text":"Inflation Risk.","page_number":445,"box":{"x":116,"y":506,"width":109,"height":9}},{"id":"ad07b852-87bc-4b0c-8194-51c6ad71707c","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the","page_number":445,"box":{"x":226,"y":506,"width":627,"height":12}},{"id":"f3d2d079-99ee-4aa8-9ed5-3b5597e1f91b","block_type":"box","text":"present value of assets or income from investments will be less in the future as inflation decreases the","page_number":445,"box":{"x":117,"y":521,"width":763,"height":12}},{"id":"7accdf9c-f420-42de-b4fa-3fcfa13141b1","block_type":"box","text":"value of money. As inflation increases, the present value of a Fund’s assets can decline as can the","page_number":445,"box":{"x":116,"y":537,"width":739,"height":12}},{"id":"7c4685d4-6c36-45cf-ab7d-d6e081fbe65d","block_type":"box","text":"value of a Fund’s distributions. Inflation rates may change frequently and significantly due to a number","page_number":445,"box":{"x":116,"y":552,"width":764,"height":12}},{"id":"81ce1837-74a7-4de9-85aa-31c3e5baf2bf","block_type":"box","text":"of potential factors, including, among others, unexpected economic shifts or changes in fiscal or","page_number":445,"box":{"x":116,"y":568,"width":716,"height":12}},{"id":"0a1c95fc-1c64-4a1e-b392-a083cc063446","block_type":"box","text":"monetary policies.","page_number":445,"box":{"x":117,"y":583,"width":139,"height":12}},{"id":"a8d82d66-bc25-492b-85b2-d592337cb9da","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":445,"box":{"x":116,"y":614,"width":275,"height":12}},{"id":"7e331074-94ba-4293-8726-082f9a559c26","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued","page_number":445,"box":{"x":392,"y":614,"width":462,"height":12}},{"id":"98a8fc7d-bb02-41fe-a1dc-8942ae03d1a4","block_type":"box","text":"stocks trade in the secondary market are affected by the performance of the stock market overall. If","page_number":445,"box":{"x":116,"y":630,"width":743,"height":12}},{"id":"cc15ae56-494f-496f-9dd0-e1402de16ca8","block_type":"box","text":"IPOs are brought to the market, availability may be limited and a Fund may not be able to buy any","page_number":445,"box":{"x":117,"y":645,"width":732,"height":12}},{"id":"cbbf5146-4cf9-41dd-916a-cff4bf776a84","block_type":"box","text":"shares at the offering price, or if it is able to buy shares, it may not be able to buy as many shares at","page_number":445,"box":{"x":116,"y":661,"width":744,"height":12}},{"id":"58808da0-e6ba-4614-8c8f-c5bfaaa8c180","block_type":"box","text":"the offering price as it would like. In addition, the prices of securities involved in IPOs are often subject","page_number":445,"box":{"x":116,"y":676,"width":758,"height":12}},{"id":"75f1bd10-3be8-463e-b0b8-4c897e63b1db","block_type":"box","text":"to greater and more unpredictable price changes than more established stocks. IPOs have the","page_number":445,"box":{"x":116,"y":692,"width":701,"height":12}},{"id":"0765dd37-648a-4dcd-9295-772bfc13b856","block_type":"box","text":"potential to produce substantial gains. A Fund may hold shares from an IPO for only a short period of","page_number":445,"box":{"x":117,"y":707,"width":751,"height":12}},{"id":"578212a5-2aa9-440b-9ca9-15e2566d1260","block_type":"box","text":"time given possible price volatility. This may result in increased portfolio turnover and expenses, such","page_number":445,"box":{"x":116,"y":723,"width":752,"height":12}},{"id":"9377fe04-48ea-4a12-aaaa-2e64fc1fc376","block_type":"box","text":"as commissions and transaction costs, and potentially result in taxable gains that the Fund will","page_number":445,"box":{"x":116,"y":738,"width":699,"height":12}},{"id":"285ac09c-dd89-4e46-b3ca-e53926fa1f0a","block_type":"box","text":"subsequently distribute to shareholders. There is no assurance that any Fund will have access to","page_number":445,"box":{"x":116,"y":754,"width":720,"height":12}},{"id":"fd57cabc-1a76-4483-be91-57a1f7615599","block_type":"box","text":"profitable IPOs and therefore investors should not rely on any past gains from IPOs as an indication of","page_number":445,"box":{"x":117,"y":769,"width":759,"height":12}},{"id":"39eab7d1-11a0-485b-a874-9f20ca74795d","block_type":"box","text":"future performance. The investment performance of a Fund during periods when it is unable to invest","page_number":445,"box":{"x":116,"y":785,"width":750,"height":12}},{"id":"4576a43a-1d2d-4747-b103-8f9ad6746ac7","block_type":"box","text":"significantly or at all in IPOs may be lower than during periods when it is able to do so. In addition, as a","page_number":445,"box":{"x":116,"y":800,"width":763,"height":12}},{"id":"f208be27-dc49-4ed7-acac-0cdd27db1952","block_type":"box","text":"Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":445,"box":{"x":117,"y":816,"width":716,"height":12}},{"id":"426acb19-ac0e-4b3c-a38c-4eb49dcd2e53","block_type":"box","text":"issued in IPOs are subject to many of the same risks as investing in companies with smaller market","page_number":445,"box":{"x":117,"y":831,"width":743,"height":12}},{"id":"0758a5af-7f0b-475d-b951-3ffe919bd131","block_type":"box","text":"capitalizations. Securities issued in IPOs have no trading history, and information about the companies","page_number":445,"box":{"x":116,"y":847,"width":768,"height":12}},{"id":"5d50c9c7-49eb-4093-bd59-f612c96fb694","block_type":"box","text":"may be available for very limited periods.","page_number":445,"box":{"x":117,"y":862,"width":308,"height":12}},{"id":"f738314f-80f0-4578-889f-9347529aa845","block_type":"box","text":"II-47","page_number":445,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"9166dabf-75dd-4969-9cf3-6a4d8e96e13c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":445,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3c912d4b-04ce-4176-a27c-bb7e54043f53","block_type":"box","text":"Investment in Emerging Markets.","page_number":446,"box":{"x":116,"y":87,"width":268,"height":12}},{"id":"e427089b-9f06-4282-ae31-e2e8878dd580","block_type":"box","text":"General.","page_number":446,"box":{"x":117,"y":109,"width":68,"height":9}},{"id":"d0917815-2b93-4c92-89c0-66cddac4b422","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging","page_number":446,"box":{"x":117,"y":130,"width":727,"height":13}},{"id":"6b32279f-5c04-4ae8-a4c2-5fd2e93a5204","block_type":"box","text":"capital markets. Unless otherwise provided in a Fund’s Prospectus, a country with an emerging capital","page_number":446,"box":{"x":116,"y":146,"width":765,"height":12}},{"id":"79e601dc-d838-4563-9e25-95a9eb608bac","block_type":"box","text":"market is any country that is (i) generally recognized to be an emerging market country by the","page_number":446,"box":{"x":117,"y":161,"width":700,"height":13}},{"id":"e2e4ebdf-3bf2-4389-a024-db8b489ca07d","block_type":"box","text":"international financial community, such as the International Finance Corporation, or","page_number":446,"box":{"x":117,"y":177,"width":617,"height":12}},{"id":"3e106b67-25b5-404d-9e2e-4cff8f997ed1","block_type":"box","text":"determined by the","page_number":446,"box":{"x":739,"y":177,"width":139,"height":12}},{"id":"9d64de41-f47e-4e88-92bc-c5e320923193","block_type":"box","text":"World Bank to have a low, middle or middle upper income economy; (ii) classified by the United","page_number":446,"box":{"x":116,"y":192,"width":714,"height":13}},{"id":"c6d24146-3e2e-44fa-8a86-2d5e72aa6c65","block_type":"box","text":"Nations or its authorities to be developing; and/or (iii) included in a broad-based index that is generally","page_number":446,"box":{"x":117,"y":208,"width":762,"height":12}},{"id":"f721aeb1-4836-43d2-9379-ff2ebb230d54","block_type":"box","text":"representative of emerging markets. Countries with emerging markets can be found in regions such as","page_number":446,"box":{"x":117,"y":223,"width":766,"height":13}},{"id":"dc297982-5cab-4435-842a-0f65faf9c38b","block_type":"box","text":"Asia, Latin America, Eastern Europe and Africa.","page_number":446,"box":{"x":116,"y":239,"width":361,"height":12}},{"id":"356b378b-8a43-4617-92b9-166d55af62ce","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve","page_number":446,"box":{"x":117,"y":267,"width":743,"height":12}},{"id":"06a88ef1-10d5-44f3-b7c8-7b709f13cbdd","block_type":"box","text":"certain additional risks that do not generally apply to investments in securities of issuers in more","page_number":446,"box":{"x":116,"y":282,"width":717,"height":12}},{"id":"a6fd6675-3e29-4612-91c5-f9079f80ffce","block_type":"box","text":"developed capital markets, such as (i) low or non-existent trading volume, resulting in market illiquidity","page_number":446,"box":{"x":116,"y":298,"width":763,"height":12}},{"id":"f0fff077-0aea-4c8d-848d-a69f1affb32f","block_type":"box","text":"and increased volatility in prices for such securities, as compared to securities of comparable issuers in","page_number":446,"box":{"x":116,"y":313,"width":771,"height":12}},{"id":"823cd060-ba2d-49e1-8b65-01a6bbf66860","block_type":"box","text":"more developed capital markets; (ii) uncertain national policies and social, political and economic","page_number":446,"box":{"x":117,"y":329,"width":723,"height":12}},{"id":"565d64be-351c-488a-9058-12dc2a6ef5d0","block_type":"box","text":"instability, increasing the potential for expropriation of assets, confiscatory taxation, high rates of","page_number":446,"box":{"x":117,"y":344,"width":718,"height":12}},{"id":"1de5e531-4651-4205-a7a4-ba97daea2057","block_type":"box","text":"inflation or unfavorable diplomatic developments; (iii) possible fluctuations in exchange rates, differing","page_number":446,"box":{"x":117,"y":360,"width":758,"height":12}},{"id":"acdf4eaa-5f78-4439-aa32-bc24cebf3561","block_type":"box","text":"legal systems and the existence or possible imposition of exchange controls, custodial restrictions or","page_number":446,"box":{"x":117,"y":375,"width":750,"height":12}},{"id":"b73f50a3-0195-4e4c-9c17-8d94729423e1","block_type":"box","text":"other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":446,"box":{"x":116,"y":391,"width":741,"height":12}},{"id":"f1abe7e8-009b-4770-83ff-e0d5a6a3c1a7","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers","page_number":446,"box":{"x":117,"y":407,"width":754,"height":11}},{"id":"28428144-eb68-4c85-9a8c-4926f0222df3","block_type":"box","text":"or industries deemed sensitive to national interests; and (v) the lack or relatively early development of","page_number":446,"box":{"x":116,"y":422,"width":759,"height":12}},{"id":"89cf2e61-bb65-4a79-b337-079ad4755499","block_type":"box","text":"legal structures governing private and foreign investments and private property. In addition to","page_number":446,"box":{"x":117,"y":437,"width":695,"height":12}},{"id":"0e353870-3f20-46e1-beb4-2fd5f2d185ee","block_type":"box","text":"withholding taxes on investment income, some countries with emerging markets may impose","page_number":446,"box":{"x":116,"y":453,"width":695,"height":12}},{"id":"b00045da-8e3e-409e-b3e6-13b95d599a10","block_type":"box","text":"differential capital gains taxes on foreign investors.","page_number":446,"box":{"x":116,"y":468,"width":381,"height":12}},{"id":"4f34c7ca-0f86-4bf6-8cea-d6d78ce8d738","block_type":"box","text":"Political and economic structures in emerging mark","page_number":446,"box":{"x":117,"y":496,"width":371,"height":12}},{"id":"c8b6788f-e085-4ddb-bb5a-8266caf94798","block_type":"box","text":"et countries may be undergoing significant evolution","page_number":446,"box":{"x":489,"y":496,"width":382,"height":12}},{"id":"3d90c6a9-f033-464b-aaa5-3b53e0247411","block_type":"box","text":"and rapid development, and these countries may la","page_number":446,"box":{"x":116,"y":512,"width":373,"height":12}},{"id":"9d44c5dc-31a7-4b4f-b231-2bb2d5f97edb","block_type":"box","text":"ck the social, political and economic stability","page_number":446,"box":{"x":490,"y":512,"width":324,"height":12}},{"id":"5b2db0b1-f288-45a1-8fda-af7d1f22aa16","block_type":"box","text":"characteristic of more developed countries. In such a dynamic environment, there can be no assurance","page_number":446,"box":{"x":116,"y":527,"width":755,"height":12}},{"id":"b2ca7a46-eb7c-42e5-ac25-1d48abb25ffb","block_type":"box","text":"that any or all of these capital markets will continue","page_number":446,"box":{"x":116,"y":543,"width":375,"height":12}},{"id":"a9521e94-2388-4410-9100-c0a9b40e4267","block_type":"box","text":"to present viable investment opportunities for a Fund.","page_number":446,"box":{"x":491,"y":543,"width":392,"height":12}},{"id":"8a995430-f81b-4876-b06d-1c11d3af39c1","block_type":"box","text":"In the past, governments of such nations have expr","page_number":446,"box":{"x":117,"y":558,"width":373,"height":12}},{"id":"e7f028aa-b2c8-4398-be7b-90e8415cc54a","block_type":"box","text":"opriated substantial amount","page_number":446,"box":{"x":490,"y":558,"width":201,"height":12}},{"id":"d50bdc1d-f1ba-4748-af10-438d52c0860d","block_type":"box","text":"s of private property, and","page_number":446,"box":{"x":692,"y":558,"width":186,"height":12}},{"id":"732f76f1-090a-4889-b4e7-7e53ddee29f2","block_type":"box","text":"most claims of the property owners have never been f","page_number":446,"box":{"x":117,"y":574,"width":386,"height":12}},{"id":"7423b343-59e8-45c2-be39-50bb0ad320df","block_type":"box","text":"fully settled. There is no assurance that such","page_number":446,"box":{"x":503,"y":574,"width":330,"height":12}},{"id":"7b201774-53d9-4a1a-8e0f-1390ded6c995","block_type":"box","text":"expropriations will not reoccur. In such an event, it is","page_number":446,"box":{"x":116,"y":589,"width":380,"height":12}},{"id":"0a5341d6-22bc-4033-9b08-42d4c9129279","block_type":"box","text":"possible that a Fund could lose the entire value of","page_number":446,"box":{"x":496,"y":589,"width":372,"height":12}},{"id":"fe9aae29-2471-4b9b-adc4-3bb8b40c04f8","block_type":"box","text":"its investments in the affected market. As a re","page_number":446,"box":{"x":117,"y":605,"width":331,"height":9}},{"id":"8b9715ff-bda0-456c-96a6-c58c8c56a5fe","block_type":"box","text":"sult the risks described above, including the risks of","page_number":446,"box":{"x":449,"y":605,"width":379,"height":12}},{"id":"b6c48adc-30a6-4653-93bd-c45ff67d17a7","block_type":"box","text":"nationalization or expropriation of assets, may be hei","page_number":446,"box":{"x":117,"y":620,"width":382,"height":12}},{"id":"292be998-8ac9-4070-a720-758d9cd3ccd3","block_type":"box","text":"ghtened. In addition, unanticipated political or social","page_number":446,"box":{"x":500,"y":620,"width":380,"height":12}},{"id":"1095e4a7-b57c-4612-bf5a-35f1cfc24508","block_type":"box","text":"developments may affect the value of investments in","page_number":446,"box":{"x":116,"y":636,"width":381,"height":12}},{"id":"1f55b3b5-8581-46a3-9153-dd20ea2cfef9","block_type":"box","text":"these countries and the availability to a Fund of","page_number":446,"box":{"x":498,"y":636,"width":353,"height":12}},{"id":"ece991b6-7f2f-4521-a0ce-da1c7ab8abcc","block_type":"box","text":"additional investments. The small size and inexperience","page_number":446,"box":{"x":116,"y":651,"width":411,"height":12}},{"id":"3811c611-1383-40f7-86e0-7e272d2ed434","block_type":"box","text":"of the securities markets in certain of these","page_number":446,"box":{"x":528,"y":651,"width":316,"height":10}},{"id":"bf0b8216-371d-4779-9e5c-e45020752ad0","block_type":"box","text":"countries and the limited volume of trading in securities","page_number":446,"box":{"x":116,"y":667,"width":399,"height":12}},{"id":"ecab38eb-9679-44cb-a6e2-e357cb111b48","block_type":"box","text":"in these countries may make investments in the","page_number":446,"box":{"x":522,"y":667,"width":345,"height":12}},{"id":"fd55dce0-5516-42ba-860c-a1ce108ff731","block_type":"box","text":"countries illiquid and more volatile than investments in more established markets.","page_number":446,"box":{"x":116,"y":682,"width":589,"height":12}},{"id":"a8571fbf-41dc-42e1-8166-e989b17fd7bf","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be","page_number":446,"box":{"x":116,"y":710,"width":765,"height":12}},{"id":"be524d70-b22d-4c2c-bc75-e72121967340","block_type":"box","text":"available about issuers in more developed capital markets, and such issuers may not be subject to","page_number":446,"box":{"x":116,"y":726,"width":732,"height":12}},{"id":"0ebde7bb-3939-427e-beca-87298241faad","block_type":"box","text":"accounting, auditing and financial reporting standards and requirements comparable to those to which","page_number":446,"box":{"x":116,"y":741,"width":756,"height":12}},{"id":"144b9112-9e48-4df9-b898-b70f336fb6df","block_type":"box","text":"U.S. companies are subject. In certain countries with emerging capital markets, reporting standards","page_number":446,"box":{"x":117,"y":757,"width":737,"height":12}},{"id":"b73ed6eb-eacb-4f09-a495-8bddad216467","block_type":"box","text":"vary widely. As a result, traditional investment measurements used in the United States, such as price/","page_number":446,"box":{"x":116,"y":772,"width":762,"height":12}},{"id":"25ec52ae-7a13-4852-aaa0-24a3bccdf66c","block_type":"box","text":"earnings ratios, may not be applicable. Emerging market securities may be substantially less liquid","page_number":446,"box":{"x":116,"y":788,"width":731,"height":12}},{"id":"d571f380-6929-4291-95fe-12a4bc3c1fe2","block_type":"box","text":"than, and more volatile than, those of mature markets, and company shares may be held by a limited","page_number":446,"box":{"x":116,"y":803,"width":749,"height":12}},{"id":"4f2a05f6-b08a-4a38-b1d7-0838752756fe","block_type":"box","text":"number of persons. This may adversely affect the timing and pricing of the Fund’s acquisition or","page_number":446,"box":{"x":117,"y":819,"width":710,"height":12}},{"id":"10b1c5db-0a28-4375-aa6f-9002d458c90f","block_type":"box","text":"disposal of securities.","page_number":446,"box":{"x":116,"y":834,"width":165,"height":12}},{"id":"31fa81bf-70a7-4ceb-88d0-b888ef93b398","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks","page_number":446,"box":{"x":117,"y":862,"width":746,"height":12}},{"id":"fcb024fe-2375-4490-883c-6beb1e17e97d","block_type":"box","text":"than those in developed markets, in part because a Fund will need to use brokers and counterparties","page_number":446,"box":{"x":116,"y":878,"width":755,"height":12}},{"id":"0b8c4f84-fd93-43e1-b467-c25b8c69027e","block_type":"box","text":"II-48","page_number":446,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"f1792de4-d90d-4000-967f-977c8e41b0b7","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":446,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"43367264-a68c-4dfe-9018-5080c8236db0","block_type":"box","text":"that are less well capitalized, and custody and registration of assets in some countries may be","page_number":447,"box":{"x":116,"y":87,"width":703,"height":12}},{"id":"fd4f156f-4807-4990-8633-121ac6e1075b","block_type":"box","text":"unreliable. The possibility of fraud, negligence, undue influence being exerted by the issuer or refusal","page_number":447,"box":{"x":117,"y":102,"width":754,"height":13}},{"id":"9c033ed3-b06c-4adb-b604-61e28bd525f8","block_type":"box","text":"to recognize ownership exists in some emerging markets, and, along with other factors, could result in","page_number":447,"box":{"x":116,"y":118,"width":762,"height":12}},{"id":"2b462078-6d49-4d17-ad33-15236e0e1047","block_type":"box","text":"ownership registration being completely lost. A Fund would absorb any loss resulting from such","page_number":447,"box":{"x":116,"y":134,"width":712,"height":12}},{"id":"945aba7a-9978-486e-8cae-d1c23559f264","block_type":"box","text":"registration problems and may have no successful claim for compensation.","page_number":447,"box":{"x":117,"y":149,"width":560,"height":12}},{"id":"675a3867-ac95-49fc-8120-a0dc9934b1e1","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging","page_number":447,"box":{"x":117,"y":180,"width":755,"height":12}},{"id":"b3daf234-5446-4af3-9352-6c867d56b92e","block_type":"box","text":"market countries may be on either a currency hedged or unhedged basis, and the Funds may hold","page_number":447,"box":{"x":117,"y":196,"width":735,"height":12}},{"id":"33e8cdb6-8b23-4da0-bdb9-8358d6321cb4","block_type":"box","text":"from time to time various foreign currencies pending investment or conversion into U.S. dollars. Some","page_number":447,"box":{"x":116,"y":211,"width":761,"height":12}},{"id":"9ffe797a-620d-4803-82a4-19068737e577","block_type":"box","text":"of these instruments may have the characteristics of futures contracts. In addition, certain Funds may","page_number":447,"box":{"x":116,"y":227,"width":757,"height":12}},{"id":"7a2177db-730e-49b3-b1cc-d16b63c1ef83","block_type":"box","text":"engage in foreign currency exchange transactions to seek to protect against changes in the level of","page_number":447,"box":{"x":116,"y":242,"width":742,"height":12}},{"id":"a334a06a-c257-4db3-a6c3-b69dd0cb5d93","block_type":"box","text":"future exchange rates which would adversely affect the Fund’s performance. These investments and","page_number":447,"box":{"x":116,"y":258,"width":752,"height":12}},{"id":"a4b07e2a-61af-4c43-9d6d-928dd93247e8","block_type":"box","text":"transactions involving foreign securities, currencies, options (including options that relate to foreign","page_number":447,"box":{"x":116,"y":273,"width":738,"height":12}},{"id":"d9a443a9-56ea-4c55-9250-50b428632516","block_type":"box","text":"currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":447,"box":{"x":116,"y":289,"width":619,"height":12}},{"id":"44f46c80-d94a-48ce-be2b-8e08c39c3be2","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":447,"box":{"x":116,"y":320,"width":328,"height":12}},{"id":"3bd96357-81d7-4b00-988a-d8857f51b2eb","block_type":"box","text":"In addition to the risks of foreign investing and the risks of","page_number":447,"box":{"x":445,"y":320,"width":432,"height":12}},{"id":"be7be2b2-4cc0-4c43-970a-8e8c822044e6","block_type":"box","text":"investing in developing markets, the developing market Asia-Pacific countries in which a Fund may","page_number":447,"box":{"x":117,"y":335,"width":738,"height":12}},{"id":"b46d7eff-d45a-4e4d-a6cb-6751a52a1828","block_type":"box","text":"invest are subject to certain additional or specific risks. Certain Funds may make substantial","page_number":447,"box":{"x":117,"y":351,"width":687,"height":12}},{"id":"88948648-56a2-43f1-ad1d-77554557e278","block_type":"box","text":"investments in Asia-Pacific countries. In many of these markets, there is a high concentration of market","page_number":447,"box":{"x":117,"y":366,"width":771,"height":12}},{"id":"8fc74941-ab3d-4f3f-8614-8895af831565","block_type":"box","text":"capitalization and trading volume in a small number of issuers representing a limited number of","page_number":447,"box":{"x":116,"y":382,"width":710,"height":12}},{"id":"86c80261-bd5b-434b-8fdb-44d69d342776","block_type":"box","text":"industries, as well as a high concentration of investors and financial intermediaries. Many of these","page_number":447,"box":{"x":117,"y":397,"width":730,"height":12}},{"id":"37bdf610-fa4d-4a0f-97cb-061ab721a4dd","block_type":"box","text":"markets also may be affected by developments with respect to more established markets in the region","page_number":447,"box":{"x":117,"y":413,"width":763,"height":12}},{"id":"2b1b6f06-48cc-41b2-b011-9940c0aa68ff","block_type":"box","text":"such as in Japan and Hong Kong. Brokers in developing market Asia-Pacific countries typically are","page_number":447,"box":{"x":116,"y":428,"width":739,"height":12}},{"id":"e3c60b4e-27b3-461f-8040-f7f1a6d48a4d","block_type":"box","text":"fewer in number and less well capitalized than brokers in the United States. These factors, combined","page_number":447,"box":{"x":116,"y":444,"width":754,"height":12}},{"id":"4fe38fef-c4a5-456a-b3ec-7ab85f7b0840","block_type":"box","text":"with the U.S. regulatory requirements for open-end investment companies and the restrictions on","page_number":447,"box":{"x":116,"y":459,"width":725,"height":12}},{"id":"88c8fdd0-f2b1-4c3d-b2d1-5a3c3f7858d0","block_type":"box","text":"foreign investment discussed below, result in potentially fewer investment opportunities for a Fund and","page_number":447,"box":{"x":116,"y":475,"width":766,"height":12}},{"id":"28b17058-3138-46ac-96b7-8980fd12aa2f","block_type":"box","text":"may have an adverse impact on the investment performance of the Fund.","page_number":447,"box":{"x":117,"y":490,"width":550,"height":12}},{"id":"5ab14b3f-04bb-4a73-b8fc-16c41ba8994f","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic,","page_number":447,"box":{"x":117,"y":521,"width":757,"height":12}},{"id":"443b8934-9019-44af-9f2b-b5b615018984","block_type":"box","text":"political and social instability than is the case in the United States and Western European countries.","page_number":447,"box":{"x":117,"y":537,"width":736,"height":12}},{"id":"3f52c37f-7994-41ae-8f0b-53cfcc36fb64","block_type":"box","text":"Such instability may result from, among other things: (i) authoritarian governments or military","page_number":447,"box":{"x":116,"y":552,"width":686,"height":12}},{"id":"4fb6ed3c-3aad-45e5-a95f-e4bb2ddd0590","block_type":"box","text":"involvement in political and economic decision-making, including changes in government through extra","page_number":447,"box":{"x":117,"y":568,"width":759,"height":12}},{"id":"a7e3e569-629c-4f30-a3d6-c81bfca991c1","block_type":"box","text":"constitutional means; (ii) popular unrest associated with demands for improved political, economic and","page_number":447,"box":{"x":116,"y":583,"width":757,"height":12}},{"id":"711375d6-03c9-4c88-a802-10f59288e423","block_type":"box","text":"social conditions; (iii) internal insurgencies; (iv) hostile relations with neighboring countries; and","page_number":447,"box":{"x":116,"y":599,"width":703,"height":12}},{"id":"fbf0c81a-e3ad-467a-834a-c6f8d7da5205","block_type":"box","text":"(v) ethnic, religious and racial disaffection. In addition, the governments of many of such countries, such","page_number":447,"box":{"x":117,"y":614,"width":767,"height":12}},{"id":"a233b521-954e-4ff9-882c-792e18cdce35","block_type":"box","text":"as Indonesia, have a substantial role in regulating and supervising the economy. Another risk common","page_number":447,"box":{"x":116,"y":630,"width":758,"height":12}},{"id":"d8ca2103-38c8-4276-be2d-4d4d08eb911a","block_type":"box","text":"to most such countries is that the economy is heavily export oriented and, accordingly, is dependent","page_number":447,"box":{"x":116,"y":645,"width":740,"height":12}},{"id":"41865e0a-2f6c-405c-bf06-f3f4ed8316db","block_type":"box","text":"upon international trade. The existence of overburdened infrastructure and obsolete financial systems","page_number":447,"box":{"x":117,"y":661,"width":745,"height":12}},{"id":"5daa9504-7f77-4871-88f9-eb44c0a529c8","block_type":"box","text":"also presents risks in certain countries, as do environmental problems. Certain economies also depend","page_number":447,"box":{"x":116,"y":676,"width":757,"height":12}},{"id":"d5c78c42-ed9c-474c-852d-de1f2b7e9e0f","block_type":"box","text":"to a significant degree upon exports of primary commodities and, therefore, are vulnerable to changes in","page_number":447,"box":{"x":116,"y":692,"width":766,"height":12}},{"id":"81ceb5ad-3f28-4a9a-9c1a-36d9d168a6a0","block_type":"box","text":"commodity prices that, in turn, may be affected by a variety of factors.","page_number":447,"box":{"x":116,"y":707,"width":511,"height":12}},{"id":"8d77e23a-c2a1-45a9-ab00-5a3f1cac6635","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse","page_number":447,"box":{"x":116,"y":738,"width":717,"height":12}},{"id":"4c7a3b70-f50b-45e6-9cca-0e50f8582576","block_type":"box","text":"impact on the Fund. For example, while the potential liability of a shareholder in a U.S. corporation with","page_number":447,"box":{"x":117,"y":754,"width":763,"height":12}},{"id":"ca54643b-cefa-4794-b06f-0ed5e69c1b27","block_type":"box","text":"respect to acts of the corporation is generally limited to the amount of the shareholder’s investment, the","page_number":447,"box":{"x":117,"y":769,"width":766,"height":12}},{"id":"547ccafa-74fd-4e79-84ce-b6ea7a9c981d","block_type":"box","text":"notion of limited liability is less clear in certain emerging market Asia-Pacific countries. Similarly, the","page_number":447,"box":{"x":117,"y":785,"width":739,"height":12}},{"id":"cc3564f4-f52f-4bc5-be23-ecb7bb635c96","block_type":"box","text":"rights of investors in developing market Asia-Pacific companies may be more limited than those of","page_number":447,"box":{"x":117,"y":800,"width":728,"height":12}},{"id":"239dc08f-b647-4dd3-b121-a88f5c554127","block_type":"box","text":"shareholders of U.S. corporations. It may be difficult or impossible to obtain and/or enforce a judgment","page_number":447,"box":{"x":116,"y":816,"width":761,"height":12}},{"id":"ec143ab0-2965-4533-88c3-21e0eb226d7e","block_type":"box","text":"in a developing market Asia-Pacific country.","page_number":447,"box":{"x":117,"y":831,"width":330,"height":12}},{"id":"6166f827-af03-410d-8402-a2804b249148","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to","page_number":447,"box":{"x":117,"y":862,"width":714,"height":12}},{"id":"9212f809-11c1-499a-a0b2-4f0bbc0f6041","block_type":"box","text":"exercise substantial influence over many aspects of the private sector. In certain cases, the","page_number":447,"box":{"x":116,"y":878,"width":683,"height":12}},{"id":"09078126-7906-4278-8f6b-7cfe2f864a57","block_type":"box","text":"II-49","page_number":447,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"ee6ebda9-6787-4965-8a01-131eeb26d8d4","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":447,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"82d1741c-04b1-49d9-9872-512222ecce00","block_type":"box","text":"government owns or controls many companies, including the largest in the country. Accordingly,","page_number":448,"box":{"x":116,"y":87,"width":718,"height":12}},{"id":"1f05c0bb-1cd2-49d9-a377-c87f009aae10","block_type":"box","text":"government actions in the future could have a significant effect on economic conditions in developing","page_number":448,"box":{"x":116,"y":102,"width":755,"height":13}},{"id":"41211b7d-4e82-4a16-9149-5c0d3a98089e","block_type":"box","text":"market Asia-Pacific countries, which could affect private sector companies and a Fund itself, as well as","page_number":448,"box":{"x":117,"y":118,"width":768,"height":12}},{"id":"8067d62c-b2d6-4094-b293-3a511a9e45bd","block_type":"box","text":"the value of securities in the Fund’s portfolio. In addition, economic statistics of developing market","page_number":448,"box":{"x":116,"y":134,"width":731,"height":12}},{"id":"1f70d52d-57d7-47e0-87bd-c6e682faffeb","block_type":"box","text":"Asia-Pacific countries may be less reliable than economic statistics of more developed nations.","page_number":448,"box":{"x":116,"y":149,"width":710,"height":12}},{"id":"94530437-2838-4741-98c8-bce9c8e4d4fc","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific","page_number":448,"box":{"x":117,"y":180,"width":741,"height":12}},{"id":"be69300e-089b-43b7-abfd-03ea26dc8efd","block_type":"box","text":"issuers and the possibility that such issuers may not be subject to the same accounting, auditing and","page_number":448,"box":{"x":117,"y":196,"width":752,"height":12}},{"id":"b8ddfab8-a22c-4650-b3ae-1d656aa5f206","block_type":"box","text":"financial reporting standards as U.S. companies, inflation accounting rules in some developing market","page_number":448,"box":{"x":116,"y":211,"width":762,"height":12}},{"id":"8da8bbdb-0ff6-4744-9a92-cc7ed98c76b7","block_type":"box","text":"Asia-Pacific countries require companies that keep accounting records in the local currency, for both","page_number":448,"box":{"x":116,"y":227,"width":750,"height":12}},{"id":"3665b3a0-5565-4c68-a63e-3096a78fbd66","block_type":"box","text":"tax and accounting purposes, to restate certain assets and liabilities on the company’s balance sheet","page_number":448,"box":{"x":116,"y":242,"width":755,"height":12}},{"id":"990181ad-7c25-4f6d-9963-89190c24e4ef","block_type":"box","text":"in order to express items in terms of currency of constant purchasing power. Inflation accounting may","page_number":448,"box":{"x":117,"y":258,"width":756,"height":12}},{"id":"5b93bf74-bcff-413d-b6cd-cfd400355e68","block_type":"box","text":"indirectly generate losses or profits for certain developing market Asia-Pacific companies.","page_number":448,"box":{"x":117,"y":273,"width":669,"height":12}},{"id":"73a9ab01-4216-40e6-8a09-a27577b4f337","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia","page_number":448,"box":{"x":116,"y":304,"width":762,"height":12}},{"id":"e6fce0ed-f2c2-4d55-8d28-72266cfa8d01","block_type":"box","text":"Pacific countries, which may result in the Fund incurring additional costs and delays in providing","page_number":448,"box":{"x":117,"y":320,"width":716,"height":12}},{"id":"50f3684b-3e46-4925-86a5-98a6063cc5ec","block_type":"box","text":"transportation and custody services for such securities outside such countries.","page_number":448,"box":{"x":116,"y":335,"width":586,"height":12}},{"id":"3453d658-0166-4c77-b96d-7fa4ab0d9c72","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially","page_number":448,"box":{"x":117,"y":366,"width":738,"height":12}},{"id":"5ee0dbaf-c974-4bed-9e62-9037877d501d","block_type":"box","text":"large debtors to commercial banks and foreign governments.","page_number":448,"box":{"x":117,"y":382,"width":456,"height":12}},{"id":"d7f47f81-f810-4337-a0d8-cd86a7c01d6e","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and","page_number":448,"box":{"x":117,"y":413,"width":705,"height":12}},{"id":"5ec80f06-4779-4cd4-8b45-bee9529c3791","block_type":"box","text":"negative impact on a Fund’s investment portfolio and, in the longer term, could impair the ability of","page_number":448,"box":{"x":117,"y":428,"width":732,"height":12}},{"id":"365013d1-e8e7-4e5a-ace2-6afe3df31f77","block_type":"box","text":"issuers in which the Fund invests to conduct their businesses in the manner normally conducted.","page_number":448,"box":{"x":117,"y":444,"width":722,"height":12}},{"id":"254ce269-a841-4d12-9603-801c9ccda457","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may","page_number":448,"box":{"x":117,"y":475,"width":766,"height":12}},{"id":"401ffeb4-4e9c-46e4-9a30-e0c7de81daa8","block_type":"box","text":"not be practicable or appropriate to invest in a particular developing Asia-Pacific country. A Fund may","page_number":448,"box":{"x":117,"y":490,"width":757,"height":12}},{"id":"42284782-d246-4d82-b682-b1df95c5ef90","block_type":"box","text":"invest in countries in which foreign investors, including management of the Fund, have had no or","page_number":448,"box":{"x":117,"y":506,"width":722,"height":12}},{"id":"8dd3f0cf-1033-4876-a610-a8b93ea70691","block_type":"box","text":"limited prior experience.","page_number":448,"box":{"x":117,"y":521,"width":182,"height":12}},{"id":"d3c5e2f4-d0c9-4af1-b7b4-0c1c2e8e07bb","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":448,"box":{"x":116,"y":552,"width":458,"height":12}},{"id":"acc7d508-5913-44a7-bd1b-6547505a5cd9","block_type":"box","text":"Some developing Asia-Pacific countries","page_number":448,"box":{"x":576,"y":552,"width":305,"height":12}},{"id":"604e5112-8929-4da5-baa7-f9d7764bcd1e","block_type":"box","text":"prohibit or impose substantial restrictions on investments in their capital markets, particularly their","page_number":448,"box":{"x":117,"y":568,"width":728,"height":12}},{"id":"87c7bf49-2589-4313-aee8-b20b57474e8c","block_type":"box","text":"equity markets, by foreign entities such as a Fund. As illustrations, certain countries may require","page_number":448,"box":{"x":116,"y":583,"width":719,"height":12}},{"id":"a4339660-cb4a-4c5d-b69c-85e6d5cf459c","block_type":"box","text":"governmental approval prior to investments by foreign persons or limit the amount of investment by","page_number":448,"box":{"x":116,"y":599,"width":741,"height":12}},{"id":"25c2d666-d1b6-4ce5-9682-61020fb6caa1","block_type":"box","text":"foreign persons in a particular company or limit the investment by foreign persons to only a specific","page_number":448,"box":{"x":116,"y":614,"width":740,"height":12}},{"id":"3ade3ce9-b7f7-427a-be5e-ae726e9c590d","block_type":"box","text":"class of securities of a company which may have less advantageous terms (including price and","page_number":448,"box":{"x":116,"y":630,"width":711,"height":12}},{"id":"c47d5d4f-d880-49de-b2f2-d1c2485c4652","block_type":"box","text":"shareholder rights) than securities of the company available for purchase by nationals. There can be","page_number":448,"box":{"x":116,"y":645,"width":750,"height":12}},{"id":"37acfa38-26e4-47ec-9ca5-c473e26e7d7e","block_type":"box","text":"no assurance that a Fund will be able to obtain required governmental approvals in a timely manner. In","page_number":448,"box":{"x":117,"y":661,"width":762,"height":12}},{"id":"c04fb568-a5a7-4103-9d84-82f25f3a1ed2","block_type":"box","text":"addition, changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of","page_number":448,"box":{"x":116,"y":676,"width":765,"height":12}},{"id":"6fa43c8f-4b83-4004-a11a-d38d30c57cc5","block_type":"box","text":"such securities may have an adverse effect on the value of such shares. Certain countries may restrict","page_number":448,"box":{"x":116,"y":692,"width":761,"height":12}},{"id":"34224314-2f27-4808-a783-0232051313bf","block_type":"box","text":"investment opportunities in issuers or industries deemed important to national interests.","page_number":448,"box":{"x":117,"y":707,"width":647,"height":12}},{"id":"3136b56c-e68e-4154-9cf8-4c11165997a9","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific","page_number":448,"box":{"x":116,"y":738,"width":724,"height":12}},{"id":"556043d5-83df-4216-b7a3-c6bede36d201","block_type":"box","text":"countries, as well as limitations on such investments, also may have an adverse impact on the","page_number":448,"box":{"x":116,"y":754,"width":700,"height":12}},{"id":"95d334ca-bd69-4508-aff4-65534ef17236","block_type":"box","text":"operations of a Fund. For example, a Fund may be required in certain of such countries to invest","page_number":448,"box":{"x":116,"y":769,"width":717,"height":12}},{"id":"bb4c97d2-5023-4230-a08f-3f197fd94262","block_type":"box","text":"initially through a local broker or other entity and then have the shares purchased re-registered in the","page_number":448,"box":{"x":117,"y":785,"width":748,"height":12}},{"id":"26cc80c2-dc78-4bff-924e-8fac3a1cf3de","block_type":"box","text":"name of the Fund. Re-registration may in some instances not be able to occur on a timely basis,","page_number":448,"box":{"x":117,"y":800,"width":712,"height":12}},{"id":"86eb3c52-6a96-4dd3-a6b2-5db16f380183","block_type":"box","text":"resulting in a delay during which a Fund may be denied certain of its rights as an investor, including","page_number":448,"box":{"x":117,"y":816,"width":736,"height":12}},{"id":"d503d2bc-8467-4af8-a64b-52f53c7591a3","block_type":"box","text":"rights as to dividends or to be made aware of certain corporate actions. There also may be instances","page_number":448,"box":{"x":117,"y":831,"width":753,"height":12}},{"id":"d1a9cb9a-abc9-4aba-8af4-23ecb97579b2","block_type":"box","text":"where a Fund places a purchase order but is subsequently informed, at the time of re-registration, that","page_number":448,"box":{"x":116,"y":847,"width":764,"height":12}},{"id":"6b5f6621-d1b0-4a68-a8a0-0f978065b23a","block_type":"box","text":"the permissible allocation of the investment to foreign investors has been filled, depriving the Fund of","page_number":448,"box":{"x":116,"y":862,"width":754,"height":12}},{"id":"1c57dda8-9e7a-4dc9-8823-6697f0f781bb","block_type":"box","text":"the ability to make its desired investment at that time.","page_number":448,"box":{"x":116,"y":878,"width":400,"height":12}},{"id":"c5c92b1b-65ea-4b85-b38b-2af406310b9d","block_type":"box","text":"II-50","page_number":448,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"a7aa3136-f24c-4d95-9c48-6bd5bac617a9","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":448,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"6865c82e-067e-4a93-93aa-18b6a4977279","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate","page_number":449,"box":{"x":116,"y":87,"width":714,"height":12}},{"id":"b2daa34b-0424-4fff-8a82-85dc0ab2f100","block_type":"box","text":"investment income, capital or the proceeds of sales of securities by foreign investors. A Fund could be","page_number":449,"box":{"x":117,"y":102,"width":763,"height":13}},{"id":"7c050b5f-86e1-4893-8ef5-daaf2f951df7","block_type":"box","text":"adversely affected by delays in, or a refusal to grant, any required governmental approval for","page_number":449,"box":{"x":116,"y":118,"width":693,"height":12}},{"id":"ab973e39-4487-4ea7-80f6-b9c5caca8cbd","block_type":"box","text":"repatriation of capital, as well as by the application to the Fund of any restrictions on investments. It is","page_number":449,"box":{"x":117,"y":134,"width":759,"height":12}},{"id":"6ef04c6e-4e7b-41ca-9206-d2505c7ae954","block_type":"box","text":"possible that certain countries may impose currency controls or other restrictions relating to their","page_number":449,"box":{"x":117,"y":149,"width":719,"height":12}},{"id":"13000aad-2500-4003-a8c4-5358e90bceb6","block_type":"box","text":"currencies or to securities of issuers in those countries. To the extent that such restrictions have the","page_number":449,"box":{"x":116,"y":165,"width":746,"height":9}},{"id":"fcb564a5-974e-4daf-b16d-69c7a9b1c505","block_type":"box","text":"effect of making certain investments illiquid, securities may not be available for sale to meet","page_number":449,"box":{"x":116,"y":180,"width":685,"height":12}},{"id":"192d4367-27aa-4009-98bf-116c05faa331","block_type":"box","text":"redemptions. Depending on a variety of financial factors, the percentage of a Fund’s portfolio subject to","page_number":449,"box":{"x":117,"y":196,"width":770,"height":12}},{"id":"e12257ac-4b23-42e8-93d0-8e200f531ae2","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the portion of the","page_number":449,"box":{"x":116,"y":211,"width":763,"height":12}},{"id":"c3e82ed6-7434-4487-91d2-be22d2dee89a","block_type":"box","text":"Fund’s assets that may be used to meet redemptions may be further decreased. Even where there is","page_number":449,"box":{"x":117,"y":227,"width":754,"height":12}},{"id":"dfdf34ad-2c3f-493b-92ef-a457fcf4a23e","block_type":"box","text":"no outright restriction on repatriation of capital, the mechanics of repatriation may affect certain aspects","page_number":449,"box":{"x":117,"y":242,"width":771,"height":12}},{"id":"13a7cde4-321a-4a22-8fd5-b9190cde5540","block_type":"box","text":"of the operations of a Fund (for example, if funds may be withdrawn only in certain currencies and/or","page_number":449,"box":{"x":116,"y":258,"width":751,"height":12}},{"id":"75d1b2c1-9f33-443d-b05c-5a864e7fd95e","block_type":"box","text":"only at an exchange rate established by the government).","page_number":449,"box":{"x":116,"y":273,"width":433,"height":12}},{"id":"c8765107-b954-4f22-bf07-99320155d62f","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have","page_number":449,"box":{"x":117,"y":304,"width":763,"height":12}},{"id":"037b57ba-1639-4933-a209-0da9c8777a36","block_type":"box","text":"actively traded securities available for investment. The Investment Company Act restricts a Fund’s","page_number":449,"box":{"x":116,"y":320,"width":734,"height":12}},{"id":"239029e9-6969-4a6a-9c84-0e73b1757b63","block_type":"box","text":"investments in any equity securities of an issuer that, in its most recent fiscal year, derived more than","page_number":449,"box":{"x":117,"y":335,"width":755,"height":12}},{"id":"534b698f-76f2-4355-9681-5acd493e6e78","block_type":"box","text":"15% of its revenues from “securities related activities,” as defined by the rules thereunder. These","page_number":449,"box":{"x":118,"y":351,"width":722,"height":12}},{"id":"b910fdd2-72df-458c-b09d-7440d37d0cba","block_type":"box","text":"provisions may restrict a Fund’s investments in certain foreign banks and other financial institutions.","page_number":449,"box":{"x":117,"y":366,"width":744,"height":12}},{"id":"f9f8cf06-992b-4978-8748-d1802e96b0b6","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant","page_number":449,"box":{"x":117,"y":397,"width":699,"height":12}},{"id":"7111d905-bb41-4fab-a392-bb435a46801d","block_type":"box","text":"evolution and rapid development, and these countries may lack the social, political and economic","page_number":449,"box":{"x":116,"y":413,"width":726,"height":12}},{"id":"66809e3d-d99d-477b-803d-2b279b0d5274","block_type":"box","text":"stability characteristic of more developed countries. Some of these countries may have in the past","page_number":449,"box":{"x":116,"y":428,"width":732,"height":12}},{"id":"4be9732c-d3d0-497f-905b-ce550c615fb1","block_type":"box","text":"failed to recognize private property rights and have at times nationalized or expropriated the assets of","page_number":449,"box":{"x":116,"y":444,"width":759,"height":12}},{"id":"18484157-8344-4566-91b3-47dfde1b9e8a","block_type":"box","text":"private companies. As a result the risks described above, including the risks of nationalization or","page_number":449,"box":{"x":117,"y":459,"width":718,"height":12}},{"id":"7428876f-e656-4323-8c3d-cd048500de73","block_type":"box","text":"expropriation of assets, may be heightened. In addition, unanticipated political or social developments","page_number":449,"box":{"x":116,"y":475,"width":760,"height":12}},{"id":"39cf52a8-e783-4d1f-b673-25cef8e0191b","block_type":"box","text":"may affect the value of investments in these countries and the availability to a Fund of additional","page_number":449,"box":{"x":117,"y":490,"width":718,"height":12}},{"id":"3eccf9d5-1b1e-4c27-b52e-d40c7df0d692","block_type":"box","text":"investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":449,"box":{"x":117,"y":506,"width":770,"height":12}},{"id":"62331013-461b-42d5-952a-e26281617627","block_type":"box","text":"certain of these countries and the limited volume of trading in securities in these countries may make","page_number":449,"box":{"x":116,"y":521,"width":753,"height":12}},{"id":"238a2e50-9f63-4987-96d0-fa3762a398e9","block_type":"box","text":"investments in the countries illiquid and more volatile than investments in Japan or most Western","page_number":449,"box":{"x":117,"y":537,"width":725,"height":12}},{"id":"ed9f9f8d-e38e-4b16-ad47-c44b70b904cb","block_type":"box","text":"European countries. There may be little financial or accounting information available with respect to","page_number":449,"box":{"x":117,"y":552,"width":741,"height":12}},{"id":"3ac2c34e-9890-4da0-86e4-b073fbe4414d","block_type":"box","text":"issuers located in certain emerging market countries, and it may be difficult to assess the value or","page_number":449,"box":{"x":117,"y":568,"width":729,"height":12}},{"id":"d7f84418-8f78-4f31-ac24-d6b215a942b2","block_type":"box","text":"prospects of an investment in such issuers.","page_number":449,"box":{"x":117,"y":583,"width":325,"height":12}},{"id":"c3dc568d-9164-4057-8820-ef4cd3138494","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be","page_number":449,"box":{"x":116,"y":614,"width":728,"height":12}},{"id":"bbdd3c98-7797-4dfd-9a9a-3dc2427545c7","block_type":"box","text":"higher than those of Funds investing primarily in domestic securities. The costs attributable to investing","page_number":449,"box":{"x":117,"y":630,"width":769,"height":12}},{"id":"331a466d-f107-4fff-b14d-76a935dc988c","block_type":"box","text":"abroad are usually higher for several reasons, such as the higher cost of custody of foreign securities,","page_number":449,"box":{"x":116,"y":645,"width":761,"height":12}},{"id":"e8d8ae3a-c686-4fc6-ad7d-b8cf75cddaa3","block_type":"box","text":"higher commissions paid on comparable transactions on foreign markets and additional costs arising","page_number":449,"box":{"x":117,"y":661,"width":746,"height":12}},{"id":"b463aadc-dc29-4c8a-829c-0cfc17840e29","block_type":"box","text":"from delays in settlements of transactions involving foreign securities.","page_number":449,"box":{"x":116,"y":676,"width":515,"height":12}},{"id":"d0156fe8-d983-4595-a4e1-ae8692ac0dd3","block_type":"box","text":"Risks of Investments in Russia.","page_number":449,"box":{"x":116,"y":707,"width":232,"height":10}},{"id":"b7c9c9c8-076a-4ba6-888d-b9dc98c34ede","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by","page_number":449,"box":{"x":354,"y":707,"width":473,"height":12}},{"id":"0d0471b9-32df-4980-b871-46f7f7633c14","block_type":"box","text":"companies located in Russia. The Russian securities market suffers from a variety of problems","page_number":449,"box":{"x":116,"y":723,"width":704,"height":12}},{"id":"c081d212-a335-4f74-8b3e-f391b803fe0c","block_type":"box","text":"described above in “Investment in Emerging Markets” not encountered in more developed markets.","page_number":449,"box":{"x":116,"y":738,"width":736,"height":12}},{"id":"a36e702c-6ec9-4063-8f95-350360025a28","block_type":"box","text":"The Russian securities market is relatively new, and a substantial portion of securities transactions in","page_number":449,"box":{"x":116,"y":754,"width":749,"height":12}},{"id":"26bd5e0b-5f40-4eb2-a6f9-212c528e42b1","block_type":"box","text":"Russia are privately negotiated outside of stock exchanges. The inexperience of the Russian securities","page_number":449,"box":{"x":117,"y":769,"width":763,"height":12}},{"id":"207394f2-5c37-4b9b-b1ca-0da841dfbd18","block_type":"box","text":"market and the limited volume of trading in securities in the market may make obtaining accurate","page_number":449,"box":{"x":117,"y":785,"width":718,"height":12}},{"id":"ed1e8b20-7a2d-4c43-b1c7-8312b94a04ac","block_type":"box","text":"prices on portfolio securities from independent sources more difficult than in more developed markets.","page_number":449,"box":{"x":117,"y":800,"width":755,"height":12}},{"id":"ee74e7e1-1e11-4c01-8223-0374b8ae05a4","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and","page_number":449,"box":{"x":117,"y":831,"width":639,"height":12}},{"id":"fe9ef739-74df-4058-90b8-2658445ad940","block_type":"box","text":"telecommunication systems, settlement, clearing and registration of securities transactions are subject","page_number":449,"box":{"x":116,"y":847,"width":764,"height":12}},{"id":"84260374-35c5-4ef0-b2e9-0c36beeba90d","block_type":"box","text":"to additional risks. Prior to 2013, there was no central registration system for equity share registration","page_number":449,"box":{"x":116,"y":862,"width":756,"height":12}},{"id":"1e5fd232-9d9c-41c6-bbeb-1650954fec13","block_type":"box","text":"in Russia and registration was carried out either by the issuers themselves or by registrars located","page_number":449,"box":{"x":117,"y":878,"width":733,"height":12}},{"id":"df59dd54-4564-4a53-83f0-c73ea78bbcc3","block_type":"box","text":"II-51","page_number":449,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"cea1f215-bd56-40b3-b6ae-24aae6e7efaa","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":449,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4abb961d-baca-4542-882d-6c46e1982e9d","block_type":"box","text":"throughout Russia. These registrars may not have been subject to effective state supervision or","page_number":450,"box":{"x":116,"y":87,"width":715,"height":12}},{"id":"86a73b5c-fe76-4725-b099-831a74e7de49","block_type":"box","text":"licensed with any governmental entity. In 2013, Russia established the National Settlement Depository","page_number":450,"box":{"x":117,"y":102,"width":764,"height":13}},{"id":"6a203069-e0f1-4826-8744-2a0ef2b54a8d","block_type":"box","text":"(“NSD”) as a recognized central securities depository, and title to Russian equities held through the","page_number":450,"box":{"x":117,"y":118,"width":740,"height":12}},{"id":"61c48520-e2be-4c7e-92f6-ea6c55052d92","block_type":"box","text":"NSD is now based on the records of the NSD and not on the records of the local registrars. Although","page_number":450,"box":{"x":117,"y":134,"width":751,"height":12}},{"id":"3a76be33-8583-4b6a-b206-d3c99b126bd7","block_type":"box","text":"the implementation of the NSD has enhanced the efficiency and transparency of the Russian securities","page_number":450,"box":{"x":116,"y":149,"width":770,"height":12}},{"id":"207732a2-cc5a-453d-8916-ea328ab7ef16","block_type":"box","text":"market, loss still can occur. Additionally, issuers and registrars remain prominent in the validation and","page_number":450,"box":{"x":117,"y":165,"width":757,"height":12}},{"id":"5f978f46-fbe5-4bde-afe2-009a42e2f3e2","block_type":"box","text":"approval of documentation requirements for corporate action processing in Russia, and, because the","page_number":450,"box":{"x":116,"y":180,"width":754,"height":12}},{"id":"7ca7edae-475b-4a79-9f80-a07dfa424540","block_type":"box","text":"documentation requirements and approval criteria vary between registrars and issuers, there remain","page_number":450,"box":{"x":116,"y":196,"width":749,"height":12}},{"id":"5d79f09d-1094-4ade-9dee-11fa28acaa0c","block_type":"box","text":"inconsistent market standards in the Russian market with respect to the completion and submission of","page_number":450,"box":{"x":117,"y":211,"width":762,"height":12}},{"id":"d09012da-33d4-4c3f-98af-63b7da51217a","block_type":"box","text":"corporate action elections. To the extent that a Fund suffers a loss relating to title or corporate actions","page_number":450,"box":{"x":116,"y":227,"width":761,"height":12}},{"id":"30f57605-566b-4793-87d1-03bae726bcb2","block_type":"box","text":"relating to its portfolio securities, it may be difficult for the Fund to enforce its rights or otherwise","page_number":450,"box":{"x":117,"y":242,"width":713,"height":12}},{"id":"ffca1438-1baf-41dc-bb05-75e04f4c6078","block_type":"box","text":"remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":450,"box":{"x":117,"y":258,"width":731,"height":12}},{"id":"f6eb08c3-ebb8-43dd-8a59-5f3fcc395798","block_type":"box","text":"custodian bank, and as a result the custodian may be considered the ultimate owner of securities held","page_number":450,"box":{"x":116,"y":273,"width":762,"height":12}},{"id":"cbe6e4b5-2715-4406-9125-7b822b46cd99","block_type":"box","text":"on behalf of their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments","page_number":450,"box":{"x":116,"y":289,"width":770,"height":12}},{"id":"425f5b03-af5f-4387-81d8-06df8a23882e","block_type":"box","text":"in Russia.","page_number":450,"box":{"x":117,"y":304,"width":77,"height":10}},{"id":"7abd20cf-0209-421d-bb6b-0fc599b23b2e","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military","page_number":450,"box":{"x":117,"y":335,"width":708,"height":12}},{"id":"2bdc8577-cb4c-48e0-bea1-c745ade3500a","block_type":"box","text":"measures, as it did with Georgia in the summer of 2008 and the Ukraine in 2014 and 2022. Russia","page_number":450,"box":{"x":117,"y":351,"width":735,"height":12}},{"id":"c5e1fd1a-ec26-4b19-9562-ee442570ee55","block_type":"box","text":"launched a large-scale invasion of Ukraine on February 24, 2022. The extent and duration of the","page_number":450,"box":{"x":117,"y":366,"width":720,"height":12}},{"id":"8ec318af-eb37-42e0-8d5b-a0fd675e87af","block_type":"box","text":"military action, resulting sanctions and resulting future market disruptions, including declines in its","page_number":450,"box":{"x":117,"y":382,"width":727,"height":12}},{"id":"0b54fa45-6623-4cd7-a665-918551f8da66","block_type":"box","text":"stock markets and the value of the ruble against the U.S. dollar, are impossible to predict. Any such","page_number":450,"box":{"x":116,"y":397,"width":744,"height":12}},{"id":"0b19f4db-e501-49cc-b9ce-d48c9d0dc59f","block_type":"box","text":"disruptions caused by Russian military action or other actions (including cyberattacks and espionage)","page_number":450,"box":{"x":116,"y":413,"width":757,"height":12}},{"id":"8f4139be-8017-40cb-83d4-5fdc923b278a","block_type":"box","text":"or resulting actual and threatened responses to such activity, including purchasing and financing","page_number":450,"box":{"x":116,"y":428,"width":720,"height":12}},{"id":"d2b756b8-2ac6-4078-a859-ad1fc7152ce6","block_type":"box","text":"restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or","page_number":450,"box":{"x":117,"y":444,"width":685,"height":12}},{"id":"450af45b-40e1-4d86-bd6b-c937e05157e0","block_type":"box","text":"cyberattacks on the Russian government, Russian companies or Russian individuals, including","page_number":450,"box":{"x":116,"y":459,"width":710,"height":12}},{"id":"2798d046-2294-4068-bbec-3871034bf0c6","block_type":"box","text":"politicians, may impact Russia’s economy and Russian issuers of securities in which the Fund invests.","page_number":450,"box":{"x":117,"y":475,"width":763,"height":12}},{"id":"65b786dd-9faa-4055-89f3-a37625d70cc4","block_type":"box","text":"Actual and threatened responses to such activity, including purchasing restrictions, sanctions, tariffs or","page_number":450,"box":{"x":116,"y":490,"width":766,"height":12}},{"id":"ca59208d-06bb-4457-a845-32d64d0cca44","block_type":"box","text":"cyberattacks on the Russian government or Russian companies, may impact Russia’s economy and","page_number":450,"box":{"x":116,"y":506,"width":750,"height":12}},{"id":"08b96d86-7127-48b6-8db1-4fb0e8e56789","block_type":"box","text":"Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":450,"box":{"x":117,"y":521,"width":726,"height":12}},{"id":"678dc009-14fc-4c9e-9503-5f7d4c1b41c0","block_type":"box","text":"military action may also impact the markets for certain Russian commodities, such as oil and natural","page_number":450,"box":{"x":117,"y":537,"width":747,"height":12}},{"id":"90383c10-9400-4207-9f6f-087f7e2df480","block_type":"box","text":"gas, as well as other sectors of the Russian economy, and may likely have collateral impacts on such","page_number":450,"box":{"x":116,"y":552,"width":758,"height":12}},{"id":"8990d749-b137-4750-9a98-438eb64e6bd4","block_type":"box","text":"sectors globally.","page_number":450,"box":{"x":116,"y":568,"width":125,"height":12}},{"id":"132a3e46-b6cd-465b-a7ac-308e1b15d153","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”)","page_number":450,"box":{"x":117,"y":599,"width":741,"height":12}},{"id":"40103c3a-d29e-4232-88a5-04e2c576e416","block_type":"box","text":"have imposed economic sanctions, which can consist of prohibiting certain securities trades, certain","page_number":450,"box":{"x":117,"y":614,"width":745,"height":12}},{"id":"bd11300d-1a56-4d91-b392-291539ee6368","block_type":"box","text":"private transactions in the energy sector, asset freezes and prohibition of all business, against certain","page_number":450,"box":{"x":117,"y":630,"width":757,"height":12}},{"id":"d3bc3afc-52c7-4873-a156-0cca5f295bad","block_type":"box","text":"Russian individuals, including politicians, and Russian corporate and banking entities. The Sanctioning","page_number":450,"box":{"x":117,"y":645,"width":765,"height":12}},{"id":"6b2bc546-f66d-4583-909e-f541cba5a0d7","block_type":"box","text":"Bodies, or others, could also institute broader sanctions on Russia, including banning Russia from","page_number":450,"box":{"x":117,"y":661,"width":725,"height":12}},{"id":"81553dd6-48df-4e31-8b57-79dfb699e4ad","block_type":"box","text":"global payments systems that facilitate cross-border payments. These sanctions, or even the threat of","page_number":450,"box":{"x":116,"y":676,"width":758,"height":12}},{"id":"4dd75676-2f16-42bb-a36e-53781bebd8bc","block_type":"box","text":"further sanctions, may result in the decline of the value and liquidity of Russian securities, a weakening","page_number":450,"box":{"x":116,"y":692,"width":763,"height":12}},{"id":"6b17e71a-6e1c-419a-af86-c3a8f6ed42da","block_type":"box","text":"of the ruble or other adverse consequences to the Russian economy. These sanctions have resulted","page_number":450,"box":{"x":116,"y":707,"width":746,"height":12}},{"id":"f401ca1e-67a4-4eed-9464-ec58a497e7a3","block_type":"box","text":"and may continue to result in the immediate freeze of Russian securities and/or funds invested in","page_number":450,"box":{"x":116,"y":723,"width":719,"height":12}},{"id":"188ba0e4-dee6-4e7f-80c5-c8c4d72b26f3","block_type":"box","text":"prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities and/or","page_number":450,"box":{"x":117,"y":738,"width":752,"height":12}},{"id":"7735e4c7-471f-4dce-9f06-0a59e4f976c1","block_type":"box","text":"assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":450,"box":{"x":116,"y":754,"width":761,"height":12}},{"id":"e3602291-a085-48b4-a85b-8c680a8083a2","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":450,"box":{"x":116,"y":769,"width":428,"height":12}},{"id":"b60473ac-b7f1-4199-9a26-68efeb1eeabf","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":450,"box":{"x":116,"y":800,"width":253,"height":12}},{"id":"be264a34-b08b-4ff0-be1d-89bdfffc098e","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi","page_number":450,"box":{"x":376,"y":800,"width":486,"height":12}},{"id":"20a84743-2ffa-4ebc-bc12-0d194b6eb529","block_type":"box","text":"Arabian issuers is new and untested. Such ability could be restricted or revoked by the Saudi Arabian","page_number":450,"box":{"x":116,"y":816,"width":752,"height":12}},{"id":"fd665fe1-46a3-4d1a-94b8-fb0e0fe0cebf","block_type":"box","text":"government at any time, and unforeseen risks could materialize due to foreign ownership in such","page_number":450,"box":{"x":116,"y":831,"width":724,"height":12}},{"id":"a49cd953-9efc-41e9-939f-e9b07c0329dd","block_type":"box","text":"securities. In addition, the Capital Market Authority (“CMA”) places investment limitations on the","page_number":450,"box":{"x":116,"y":847,"width":715,"height":12}},{"id":"2212ca13-6782-4c2a-94da-f5ec1d286a7d","block_type":"box","text":"ownership of Saudi Arabian issuers by foreign investors, including a limitation on a Fund’s ownership","page_number":450,"box":{"x":116,"y":862,"width":753,"height":12}},{"id":"6d4da7a0-7b8c-4262-8481-8c9c7399c9f9","block_type":"box","text":"of any single issuer listed on the Saudi Arabian Stock Exchange, which may prevent a Fund from","page_number":450,"box":{"x":116,"y":878,"width":726,"height":12}},{"id":"d651ec73-6fad-4a87-87f9-f459289de7ad","block_type":"box","text":"II-52","page_number":450,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"1f1645d3-4be9-475c-a6f7-acd45c1fce77","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":450,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"92bf605d-46ff-405f-8817-fc849806e9a6","block_type":"box","text":"investing in accordance with its strategy and contribute to tracking error against the Underlying Index.","page_number":451,"box":{"x":117,"y":87,"width":757,"height":12}},{"id":"c109cba2-6edf-4e7a-bdbb-85e8ba3ed07f","block_type":"box","text":"These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":451,"box":{"x":116,"y":103,"width":710,"height":12}},{"id":"02ebd80d-58c5-4a97-acb1-b562783850dd","block_type":"box","text":"approvals or additional foreign taxes, may be instituted at any time. A Fund may not be able to obtain","page_number":451,"box":{"x":116,"y":118,"width":756,"height":12}},{"id":"372a29f4-8045-41b5-8f08-7b1b9ec4fa6b","block_type":"box","text":"or maintain any such licenses or approvals and may not be able to buy and sell securities at full value.","page_number":451,"box":{"x":116,"y":134,"width":763,"height":12}},{"id":"699bb8ef-fc0b-48f9-b91b-18f8a0cbe9c2","block_type":"box","text":"Major disruptions or regulatory changes could occur in the Saudi Arabian market, any of which could","page_number":451,"box":{"x":117,"y":149,"width":750,"height":12}},{"id":"a828ee87-8404-4c85-9bbc-62aaaca5273c","block_type":"box","text":"negatively impact a Fund. These risks may be exacerbated, compared to more developed markets,","page_number":451,"box":{"x":117,"y":165,"width":741,"height":12}},{"id":"7e477a8d-b15f-4a63-bbd1-d390d9f54c49","block_type":"box","text":"given the limited history of foreign investment in the Saudi Arabian market. Investments in Saudi","page_number":451,"box":{"x":116,"y":180,"width":719,"height":12}},{"id":"71b0f7ea-a346-45e7-b163-d6a17dd58698","block_type":"box","text":"Arabia may also be subject to loss due to expropriation or nationalization of assets and property or the","page_number":451,"box":{"x":116,"y":196,"width":764,"height":12}},{"id":"7ab8e632-1021-4434-97bf-dfe4ef8278c5","block_type":"box","text":"imposition of restrictions on additional foreign investments and repatriation of capital. Such heightened","page_number":451,"box":{"x":117,"y":211,"width":764,"height":12}},{"id":"c2d40433-7242-4390-9243-73704de17fbe","block_type":"box","text":"risks may include, among others, restrictions on and government intervention in international trade,","page_number":451,"box":{"x":117,"y":227,"width":739,"height":12}},{"id":"e62513de-26fe-4cd7-8373-865613b68b1a","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in","page_number":451,"box":{"x":116,"y":242,"width":694,"height":12}},{"id":"c29172e5-0c7b-49a3-aa14-e532ee688a2d","block_type":"box","text":"governmental decision making, armed conflict, crime and instability as a result of religious, ethnic and/","page_number":451,"box":{"x":116,"y":258,"width":758,"height":12}},{"id":"a4e4660d-c748-4ccd-8511-0400f120defc","block_type":"box","text":"or socioeconomic unrest. Saudi Arabia has privatized, or has begun the process of privatizing, certain","page_number":451,"box":{"x":116,"y":273,"width":759,"height":12}},{"id":"f0845e18-34b4-465b-8c82-4dbfcdcd11ee","block_type":"box","text":"entities and industries. Newly privatized companies may face strong competition from government","page_number":451,"box":{"x":116,"y":289,"width":733,"height":12}},{"id":"b26e121f-52e9-42a9-ac1a-b3659e94ad32","block_type":"box","text":"sponsored competitors that have not been privatized. In some instances, investors in newly privatized","page_number":451,"box":{"x":116,"y":304,"width":760,"height":12}},{"id":"81249684-be24-429f-a2f8-787e10ff5896","block_type":"box","text":"entities have suffered losses due to the inability of the newly privatized entities to adjust quickly to a","page_number":451,"box":{"x":116,"y":320,"width":744,"height":12}},{"id":"dcd55707-cf67-4941-90f2-0c3ca319cda5","block_type":"box","text":"competitive environment or changing regulatory and legal standards or, in some cases, due to","page_number":451,"box":{"x":116,"y":335,"width":703,"height":12}},{"id":"d57b58e2-f874-4133-8132-28f9ff4f0d88","block_type":"box","text":"re-nationalization of such privatized entities. There is no assurance that similar losses will not recur.","page_number":451,"box":{"x":117,"y":351,"width":743,"height":12}},{"id":"7e43644f-a40d-4e36-9a57-01096e9f3528","block_type":"box","text":"Further, under income tax laws imposed by the Department of Zakat and Income Tax, dividends paid","page_number":451,"box":{"x":117,"y":366,"width":754,"height":12}},{"id":"782a8ca8-c46e-44da-8328-450f82e0584e","block_type":"box","text":"by a Saudi Arabian company to foreign stockholders are generally subject to a 5% withholding tax","page_number":451,"box":{"x":117,"y":382,"width":730,"height":12}},{"id":"1b2d4c1c-142f-4095-8c36-e7f9eb2dadd4","block_type":"box","text":"(different tax rates may apply pursuant to an applicable treaty). Saudi Arabia is highly reliant on income","page_number":451,"box":{"x":117,"y":397,"width":770,"height":12}},{"id":"988ec1ad-d12e-4705-9065-f85e471bfc73","block_type":"box","text":"from the sale of petroleum and trade with other countries involved in the sale of petroleum, and its","page_number":451,"box":{"x":116,"y":413,"width":732,"height":12}},{"id":"e622a3b7-cf12-4df6-94bb-e97cad550688","block_type":"box","text":"economy is therefore vulnerable to changes in foreign currency values and the market for petroleum.","page_number":451,"box":{"x":116,"y":428,"width":753,"height":12}},{"id":"3e53ffb7-ac5c-4a41-9a81-4408d6553f88","block_type":"box","text":"As global demand for petroleum fluctuates, Saudi Arabia may be significantly impacted.","page_number":451,"box":{"x":116,"y":444,"width":655,"height":12}},{"id":"177954ad-4df1-4b77-85fe-976f170c151b","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial","page_number":451,"box":{"x":117,"y":475,"width":701,"height":12}},{"id":"04d156b9-be2d-4de4-85f1-0a383adbb7f0","block_type":"box","text":"influence over many aspects of the private sector. Although liberalization in the wider economy is","page_number":451,"box":{"x":117,"y":490,"width":724,"height":12}},{"id":"379d0047-3c37-4ed0-b2f1-5df987262312","block_type":"box","text":"underway, in many areas it has lagged significantly: restrictions on foreign ownership persist, and the","page_number":451,"box":{"x":117,"y":506,"width":755,"height":12}},{"id":"fe6ec7ce-7a41-4b83-b63f-8e1e1c19e93f","block_type":"box","text":"government has an ownership stake in many key industries. The situation is exacerbated by the fact","page_number":451,"box":{"x":116,"y":521,"width":748,"height":12}},{"id":"ac406282-8293-4e2c-b909-42c27ee9e400","block_type":"box","text":"that Saudi Arabia is governed by an absolute monarchy. Saudi Arabia has historically experienced","page_number":451,"box":{"x":116,"y":537,"width":735,"height":12}},{"id":"d887528e-64a2-4ac9-a4a0-7c003b4dd6bd","block_type":"box","text":"strained relations with economic partners worldwide, including other countries in the Middle East due to","page_number":451,"box":{"x":116,"y":552,"width":771,"height":12}},{"id":"9b5f16a7-faa2-4412-a3c4-880cb188ec11","block_type":"box","text":"geopolitical events. Incidents involving a Middle Eastern country’s or the region’s security, including","page_number":451,"box":{"x":116,"y":568,"width":742,"height":12}},{"id":"08f41721-ffe0-438d-accd-2d4c8d1e8446","block_type":"box","text":"terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":451,"box":{"x":116,"y":583,"width":757,"height":12}},{"id":"b588f8d8-7f74-416c-a7fd-7247c87e767a","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions","page_number":451,"box":{"x":117,"y":599,"width":766,"height":12}},{"id":"9015c616-ba83-4ce5-8ccf-2f9b6936bb19","block_type":"box","text":"in Saudi Arabia, which could affect private sector companies and a Fund, as well as the value of","page_number":451,"box":{"x":117,"y":614,"width":717,"height":12}},{"id":"ae5a0b7f-79da-48f4-baec-5faaeccd843a","block_type":"box","text":"securities in a Fund’s portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian","page_number":451,"box":{"x":116,"y":630,"width":765,"height":12}},{"id":"e452832a-fd5a-4c9f-8b35-a867eb242e12","block_type":"box","text":"corporate entities, or even the threat of sanctions, may result in the decline of the value and liquidity of","page_number":451,"box":{"x":116,"y":645,"width":764,"height":12}},{"id":"bbdae2a0-35f8-4a79-b548-1b4f8845cb0a","block_type":"box","text":"Saudi Arabian securities, a weakening of the Saudi riyal or other adverse consequences to the Saudi","page_number":451,"box":{"x":116,"y":661,"width":749,"height":12}},{"id":"4b3b6b72-c3ab-4d2c-9bff-c7fc2a86ebee","block_type":"box","text":"Arabian economy. In addition, Saudi Arabia’s economy relies heavily on cheap, foreign labor, and","page_number":451,"box":{"x":116,"y":676,"width":723,"height":12}},{"id":"b2afdffa-4791-499f-8744-6c159fd506e6","block_type":"box","text":"changes in the availability of this labor supply could have an adverse effect on the economy.","page_number":451,"box":{"x":116,"y":692,"width":684,"height":12}},{"id":"38fcc4dd-6900-4471-8401-04af938a1b56","block_type":"box","text":"The securities markets in Saudi Arabia may not be as developed as those in other countries. As a","page_number":451,"box":{"x":116,"y":723,"width":725,"height":12}},{"id":"d283c2c2-8795-45c5-b757-ae56710e6e12","block_type":"box","text":"result, securities markets in Saudi Arabia are subject to greater risks associated with market volatility,","page_number":451,"box":{"x":117,"y":738,"width":751,"height":12}},{"id":"fad6c8db-187c-4cdc-b4fc-6137839942b7","block_type":"box","text":"lower market capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations,","page_number":451,"box":{"x":117,"y":754,"width":699,"height":12}},{"id":"425b578a-f514-48e9-95a5-8fc9dd4827d1","block_type":"box","text":"uncertainty regarding the existence of trading markets, governmental control and heavy regulation of","page_number":451,"box":{"x":117,"y":769,"width":747,"height":12}},{"id":"b75deed8-6644-4e37-a3b5-c0473fbca60e","block_type":"box","text":"labor and industry. Shares of certain Saudi Arabian companies tend to trade less frequently than those","page_number":451,"box":{"x":117,"y":785,"width":761,"height":12}},{"id":"fcf0320d-795a-4386-9db0-ffb015653a36","block_type":"box","text":"of companies on exchanges in more developed markets. Such infrequent trading may adversely affect","page_number":451,"box":{"x":116,"y":800,"width":759,"height":12}},{"id":"7274e81b-1d9f-465a-a3cf-968a1e2d2266","block_type":"box","text":"the pricing of these securities and a Fund’s ability to sell these securities in the future. Current","page_number":451,"box":{"x":116,"y":816,"width":697,"height":12}},{"id":"d3db7ced-6021-402b-8d28-e02fca25d11b","block_type":"box","text":"regulations in Saudi Arabian markets may require a Fund to execute trades of securities through a","page_number":451,"box":{"x":117,"y":831,"width":733,"height":12}},{"id":"14bce31c-3ae0-4985-8bb5-dc91bc0cd244","block_type":"box","text":"single broker. As a result, the Manager will have less flexibility to choose among brokers on behalf of a","page_number":451,"box":{"x":116,"y":847,"width":767,"height":12}},{"id":"0eea88b1-f079-4395-a98a-34ac12a82120","block_type":"box","text":"Fund than is typically the case for investment managers.","page_number":451,"box":{"x":117,"y":862,"width":424,"height":12}},{"id":"2f4df8ad-bb04-4393-83eb-ecee9c53d5df","block_type":"box","text":"II-53","page_number":451,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"c1f89a64-34a9-4f3d-a27a-88169ae807f9","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":451,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"db144164-e92e-4582-9b4a-d23431c6a63c","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically","page_number":452,"box":{"x":116,"y":87,"width":687,"height":12}},{"id":"50b7ff29-f417-4e0f-8a18-b45aae2d801e","block_type":"box","text":"experienced political instability, and there remains the possibility that the stability will not hold in the","page_number":452,"box":{"x":116,"y":103,"width":741,"height":12}},{"id":"c0e4d278-b353-4c8f-970c-c42151014408","block_type":"box","text":"future or that instability in the larger Middle East region could adversely impact the economy of Saudi","page_number":452,"box":{"x":116,"y":118,"width":755,"height":12}},{"id":"fcdf9872-91ba-4900-908c-a12a4197d8d5","block_type":"box","text":"Arabia. Instability may be caused by military developments, government interventions in the","page_number":452,"box":{"x":116,"y":134,"width":686,"height":12}},{"id":"3fc236e0-94b9-4137-92a5-9d48c2823f94","block_type":"box","text":"marketplace, terrorism, extremist attitudes, attempted social or political reforms, religious differences,","page_number":452,"box":{"x":117,"y":149,"width":755,"height":12}},{"id":"282b5445-ce9a-468c-a958-62a177331494","block_type":"box","text":"or other factors. Additionally, anti-Western views held by certain groups in the Middle East may","page_number":452,"box":{"x":116,"y":165,"width":710,"height":12}},{"id":"eb1bfd54-a050-4a65-938d-72a7fc035e46","block_type":"box","text":"influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":452,"box":{"x":117,"y":180,"width":740,"height":12}},{"id":"1724d510-4893-4338-ba32-3f281e25bbb1","block_type":"box","text":"with Saudi Arabia and other Middle-Eastern countries may affect these attitudes and policies. The U.S.","page_number":452,"box":{"x":116,"y":196,"width":768,"height":12}},{"id":"1d0eb8e9-e843-456f-80b1-bf25e3fb927e","block_type":"box","text":"is a significant, and in some cases the most significant, trading partner of, or foreign investor in, Saudi","page_number":452,"box":{"x":117,"y":211,"width":760,"height":12}},{"id":"79c40ab9-7a39-4027-8ee4-80415a40e41f","block_type":"box","text":"Arabia. As a result, economic conditions of Saudi Arabia may be particularly affected by changes in the","page_number":452,"box":{"x":116,"y":227,"width":771,"height":12}},{"id":"8e8ffc48-47a0-405e-a8b6-3141e5ed01aa","block_type":"box","text":"U.S. economy. A decrease in U.S. imports or exports, new trade and financial regulations or tariffs,","page_number":452,"box":{"x":117,"y":242,"width":738,"height":12}},{"id":"fc7bdda0-3bc5-4708-b766-bddf1924d843","block_type":"box","text":"changes in the U.S. dollar exchange rate or an economic slowdown in the U.S. may have a material","page_number":452,"box":{"x":116,"y":258,"width":746,"height":12}},{"id":"50aa8809-6fdb-4af5-a7c0-8b3b4e2bc5d9","block_type":"box","text":"adverse effect on the economic conditions of Saudi Arabia and, as a result, securities to which the","page_number":452,"box":{"x":116,"y":273,"width":733,"height":11}},{"id":"9caa5461-fbc8-423c-afc8-8041075ff065","block_type":"box","text":"Fund has exposure. Political instability in North Africa and the larger Middle East region has caused","page_number":452,"box":{"x":117,"y":289,"width":743,"height":12}},{"id":"091f9538-0515-49fe-9e77-8fcc83cf7f05","block_type":"box","text":"significant disruptions to many industries. Continued political and social unrest in these areas may","page_number":452,"box":{"x":116,"y":304,"width":732,"height":12}},{"id":"d64c4153-5bab-4c8f-ad0d-3d2b0c1d18a5","block_type":"box","text":"negatively affect the value of securities in a Fund’s portfolio.","page_number":452,"box":{"x":117,"y":320,"width":449,"height":12}},{"id":"4e8027da-c206-4aa1-9e8f-62f53daecfc1","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to","page_number":452,"box":{"x":117,"y":351,"width":731,"height":12}},{"id":"628d2643-966f-425c-a5cd-c9b1b43e5391","block_type":"box","text":"sanctions and/or embargoes imposed by the U.S. Government and the United Nations and/or countries","page_number":452,"box":{"x":116,"y":366,"width":772,"height":12}},{"id":"2c4bbe92-6a86-4e05-bbf6-0f1ebc3b57e0","block_type":"box","text":"identified by the U.S. Government as state sponsors of terrorism. As a result, an issuer may sustain","page_number":452,"box":{"x":117,"y":382,"width":744,"height":12}},{"id":"8525f751-3b6a-45a9-a17f-2746f1c2f527","block_type":"box","text":"damage to its reputation if it is identified as an issuer which operates in, or has dealings with, such","page_number":452,"box":{"x":116,"y":397,"width":734,"height":12}},{"id":"206bac71-0058-4873-bcaa-d3f2ca9df996","block_type":"box","text":"countries. A Fund, as an investor in such issuers will be indirectly subject to those risks.","page_number":452,"box":{"x":116,"y":413,"width":655,"height":12}},{"id":"27f5ee1e-fb6d-4b90-91d6-04f0e46af465","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":452,"box":{"x":116,"y":444,"width":237,"height":12}},{"id":"e1531f50-8d65-4761-b836-bfd35b9dd481","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory,","page_number":452,"box":{"x":354,"y":444,"width":493,"height":12}},{"id":"483eac14-c824-4c14-ae92-39991dd652a2","block_type":"box","text":"political, currency, security, expropriation and/or nationalization of assets and economic risk specific to","page_number":452,"box":{"x":117,"y":459,"width":764,"height":12}},{"id":"665bf08c-3ef5-4a82-b7eb-1d21deefdbfd","block_type":"box","text":"Venezuela. Venezuela is extremely well endowed with natural resources, including oil and natural gas,","page_number":452,"box":{"x":116,"y":475,"width":765,"height":12}},{"id":"9a838d46-3dde-4a0c-9eeb-0e59097b434f","block_type":"box","text":"and its economy is heavily dependent on export of natural resources to key trading partners. Any act of","page_number":452,"box":{"x":116,"y":490,"width":770,"height":12}},{"id":"9d9335d4-3c44-4c4b-be31-60cc78afd004","block_type":"box","text":"terrorism, an armed conflict or a breakdown of a key trading relationship that disrupts the production or","page_number":452,"box":{"x":116,"y":506,"width":767,"height":12}},{"id":"9dd831b9-f91c-4135-a604-fa3f74dc7601","block_type":"box","text":"export of natural resources will likely negatively affect the Venezuelan economy. The government","page_number":452,"box":{"x":116,"y":521,"width":727,"height":12}},{"id":"88338057-ae40-42fd-85d6-48d23d46bed9","block_type":"box","text":"continues to control key sectors of the economy, including upstream oil and gas production, and has","page_number":452,"box":{"x":116,"y":537,"width":749,"height":12}},{"id":"c8029314-fe4a-4ee5-9c72-cc992f8fb5c7","block_type":"box","text":"sought to increase its role in key sectors, such as telecommunications and steel. Meanwhile,","page_number":452,"box":{"x":116,"y":552,"width":692,"height":12}},{"id":"d9135741-983c-43af-8337-9408ca3f2b73","block_type":"box","text":"ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":452,"box":{"x":116,"y":568,"width":753,"height":12}},{"id":"7fb17b7d-3349-4920-890f-32c40a6a67d3","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues","page_number":452,"box":{"x":116,"y":583,"width":746,"height":12}},{"id":"45fe8d09-a94b-413d-828d-695e5ae5a40c","block_type":"box","text":"between the governments of the U.S. and Venezuela. The U.S. has imposed economic sanctions,","page_number":452,"box":{"x":117,"y":599,"width":731,"height":12}},{"id":"609d4c3e-170c-47f6-9979-fa692df23ad3","block_type":"box","text":"which consist of asset freezes and sectoral sanctions, on certain Venezuelan individuals and","page_number":452,"box":{"x":116,"y":614,"width":693,"height":11}},{"id":"f125f7c5-6d0b-41cd-93ba-0204532977d3","block_type":"box","text":"Venezuelan corporate entities, and on the Venezuelan government. The U.S. could also institute","page_number":452,"box":{"x":116,"y":630,"width":722,"height":12}},{"id":"a1a455c4-8496-4416-b90e-d6f4407c9de8","block_type":"box","text":"broader sanctions on Venezuela. The U.S. has also taken military action against Venezuela in an effort","page_number":452,"box":{"x":117,"y":645,"width":769,"height":12}},{"id":"4bd09469-229d-4d78-9275-d39dc2cd6320","block_type":"box","text":"to effect regime change. Military action, sanctions, or even the threat of further military action and","page_number":452,"box":{"x":116,"y":661,"width":721,"height":12}},{"id":"26753fe6-b316-4241-93b0-3f4fc026e4ff","block_type":"box","text":"sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a weakening of","page_number":452,"box":{"x":116,"y":676,"width":758,"height":12}},{"id":"18782391-a29f-492d-9230-db904eb426ef","block_type":"box","text":"the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":452,"box":{"x":116,"y":692,"width":741,"height":12}},{"id":"a56c67b2-dc47-43c1-9e34-16b6cd876651","block_type":"box","text":"ability of a Fund to buy, sell, receive or deliver those securities and/or assets. Additional sanctions","page_number":452,"box":{"x":116,"y":707,"width":727,"height":12}},{"id":"66aea0f6-f119-4d26-b16e-c4091858f35e","block_type":"box","text":"against Venezuela may in the future be imposed by the U.S. or other countries. These factors, among","page_number":452,"box":{"x":116,"y":723,"width":755,"height":12}},{"id":"e88d5ab6-2f94-48e7-8b2e-5d0ce86365cd","block_type":"box","text":"others, can have a negative impact on a Fund’s investments.","page_number":452,"box":{"x":116,"y":738,"width":451,"height":12}},{"id":"1303160f-ca61-420c-85a9-631c3ecad895","block_type":"box","text":"Brady Bonds.","page_number":452,"box":{"x":116,"y":769,"width":99,"height":12}},{"id":"199d47cf-255d-4009-b4b9-d66bacfb2cb6","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities","page_number":452,"box":{"x":222,"y":769,"width":628,"height":12}},{"id":"9b0c65ea-cc8f-4360-93b1-d9c4569f77e5","block_type":"box","text":"may include emerging market governmental debt obligations commonly referred to as Brady Bonds.","page_number":452,"box":{"x":117,"y":785,"width":739,"height":12}},{"id":"4f570ebd-8a15-4455-aed0-e5df801f0e8c","block_type":"box","text":"Brady Bonds are securities created through the exchange of existing commercial bank loans to","page_number":452,"box":{"x":117,"y":800,"width":704,"height":12}},{"id":"4947293a-fdf7-4e08-b14c-891a6e022a12","block_type":"box","text":"sovereign entities for new obligations in connection with debt restructurings under a debt restructuring","page_number":452,"box":{"x":116,"y":816,"width":755,"height":12}},{"id":"0c930560-5cb0-4a74-ba6d-cd8f4c3f457d","block_type":"box","text":"plan introduced by former U.S. Secretary of the Treasury, Nicholas F. Brady (the “Brady Plan”). Brady","page_number":452,"box":{"x":117,"y":831,"width":760,"height":12}},{"id":"7c69a004-f2bc-470a-8411-65a257dd9d72","block_type":"box","text":"Plan debt restructurings have been implemented in a number of countries, including: Argentina,","page_number":452,"box":{"x":117,"y":847,"width":713,"height":12}},{"id":"5315b40c-ca37-4a7f-a10e-b9f4abb16e35","block_type":"box","text":"Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico, Niger, Nigeria,","page_number":452,"box":{"x":117,"y":862,"width":766,"height":12}},{"id":"1cac913c-a6b1-47e6-b6f1-998f48dfe02d","block_type":"box","text":"Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. 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Brady Bonds are not considered to","page_number":453,"box":{"x":117,"y":151,"width":756,"height":12}},{"id":"52597879-e87b-40be-be18-048af5489c4b","block_type":"box","text":"be U.S. Government Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be","page_number":453,"box":{"x":117,"y":166,"width":747,"height":12}},{"id":"5a1ff36c-9d64-4450-9138-a19b0a8a7136","block_type":"box","text":"fixed rate par bonds or floating rate discount bonds, are generally collateralized in full as to principal by","page_number":453,"box":{"x":116,"y":182,"width":768,"height":12}},{"id":"ecc1556e-9d56-4895-9dea-58b91b1e3a95","block_type":"box","text":"U.S. Treasury zero-coupon bonds having the same maturity as the Brady Bonds. Interest payments on","page_number":453,"box":{"x":117,"y":197,"width":767,"height":12}},{"id":"39d3b922-019b-4e9c-9e9a-e4cbfd5df02d","block_type":"box","text":"these Brady Bonds generally are collateralized on a one-year or longer rolling-forward basis by cash or","page_number":453,"box":{"x":116,"y":213,"width":769,"height":12}},{"id":"d73f5f2f-0351-40a2-8a5a-a350bde954ec","block_type":"box","text":"securities in an amount that, in the case of fixed rate bonds, is equal to at least one year of interest","page_number":453,"box":{"x":116,"y":228,"width":738,"height":12}},{"id":"261c4dbb-22bb-404a-9426-1e937174ad38","block_type":"box","text":"payments or, in the case of floating rate bonds, initially is equal to at least one year’s interest payments","page_number":453,"box":{"x":117,"y":244,"width":769,"height":12}},{"id":"61ab66d3-4789-4c54-a551-0e3cdbdf8f1e","block_type":"box","text":"based on the applicable interest rate at that time and is adjusted at regular intervals thereafter. Certain","page_number":453,"box":{"x":117,"y":259,"width":764,"height":12}},{"id":"3947fa40-900b-483c-a948-adab82438cc7","block_type":"box","text":"Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect","page_number":453,"box":{"x":117,"y":275,"width":711,"height":12}},{"id":"51113bc6-a8c7-40ec-95a0-2d1bd009a351","block_type":"box","text":"constitute supplemental interest payments but generally are not collateralized. Brady Bonds are often","page_number":453,"box":{"x":116,"y":290,"width":757,"height":12}},{"id":"e870da2d-857f-4e00-b37e-d934869d3420","block_type":"box","text":"viewed as having three or four valuation components: (i) the collateralized repayment of principal at","page_number":453,"box":{"x":116,"y":306,"width":743,"height":12}},{"id":"49d600a5-a391-4195-af44-e45bb8a997b0","block_type":"box","text":"final maturity; (ii) the collateralized interest payments; (iii) the uncollateralized interest payments; and","page_number":453,"box":{"x":116,"y":321,"width":753,"height":12}},{"id":"b51b844e-ef7f-468c-9957-77b25e1dce3c","block_type":"box","text":"(iv) any uncollateralized repayment of principal at maturity (the uncollateralized amounts constitute the","page_number":453,"box":{"x":117,"y":337,"width":763,"height":12}},{"id":"9f4d00dc-5fcd-482c-83c6-054c361f5c41","block_type":"box","text":"“residual risk”).","page_number":453,"box":{"x":116,"y":352,"width":116,"height":12}},{"id":"1b79da61-9f20-4a29-b881-d5ebeb75759b","block_type":"box","text":"Brady Bonds involve various risk factors described abov","page_number":453,"box":{"x":117,"y":385,"width":398,"height":12}},{"id":"ada4a16e-ceab-450b-bd4c-c830245f5a87","block_type":"box","text":"e associated with investing in foreign securities,","page_number":453,"box":{"x":516,"y":385,"width":343,"height":12}},{"id":"b3ef091b-526b-409d-b822-65291137acb2","block_type":"box","text":"including the history of defaults with respect to co","page_number":453,"box":{"x":117,"y":400,"width":348,"height":13}},{"id":"a845b2e6-cf57-4a3a-849a-c56ed6c2fc4a","block_type":"box","text":"mmercial bank loans by public and private entities of","page_number":453,"box":{"x":467,"y":400,"width":377,"height":13}},{"id":"921d855c-924b-45f7-8829-281bf8385dee","block_type":"box","text":"countries issuing Brady Bonds. In light of the resi","page_number":453,"box":{"x":116,"y":416,"width":346,"height":12}},{"id":"adab8cdb-ab0d-4ede-a551-f00da17449d4","block_type":"box","text":"dual risk of Brady Bonds and, among other factors, the","page_number":453,"box":{"x":464,"y":416,"width":393,"height":12}},{"id":"27bab123-9643-4bc5-a014-078c37114a78","block_type":"box","text":"history of defaults, investments in Brady Bonds are c","page_number":453,"box":{"x":117,"y":431,"width":373,"height":13}},{"id":"d22df579-eb5d-453c-a966-cccb93b736d1","block_type":"box","text":"onsidered speculative. There can be no assurance that","page_number":453,"box":{"x":491,"y":432,"width":396,"height":11}},{"id":"cde283c7-7bed-4d83-a0de-0f816cfe91dc","block_type":"box","text":"Brady Bonds in which the Funds may invest will not be subject to restructuring arrangements or to requests","page_number":453,"box":{"x":117,"y":447,"width":766,"height":12}},{"id":"fea0fc4d-f39d-4ddd-8633-34dbb22df229","block_type":"box","text":"for new credit, which may cause the Funds to suffer a lo","page_number":453,"box":{"x":116,"y":462,"width":397,"height":13}},{"id":"74462fd7-e4fc-4ac9-8bca-211be015b4c9","block_type":"box","text":"ss of interest or principal on any of its holdings.","page_number":453,"box":{"x":514,"y":462,"width":338,"height":13}},{"id":"393d5621-34e0-4af7-9f49-c9c71d0d1a4d","block_type":"box","text":"China Investments Risk.","page_number":453,"box":{"x":117,"y":495,"width":185,"height":10}},{"id":"03773a26-c1e7-4e3a-8aa8-e54f84b93147","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the","page_number":453,"box":{"x":117,"y":519,"width":734,"height":12}},{"id":"5485f3c1-1b02-459b-8e2b-34bde1cc128e","block_type":"box","text":"“PRC”), including certain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and","page_number":453,"box":{"x":116,"y":535,"width":764,"height":12}},{"id":"c049cd70-14db-4186-8191-bd10db43a5e5","block_type":"box","text":"special considerations not typically associated with investing in the U.S. securities markets. Such","page_number":453,"box":{"x":116,"y":550,"width":725,"height":12}},{"id":"1b9f5bf7-4e5a-407f-aaef-e67ca9a87b21","block_type":"box","text":"heightened risks include, among others, an authoritarian government, popular unrest associated with","page_number":453,"box":{"x":117,"y":566,"width":753,"height":12}},{"id":"33a5289e-23dd-4050-8566-1031522a7c44","block_type":"box","text":"demands for improved political, economic and social conditions, the impact of regional conflict on the","page_number":453,"box":{"x":116,"y":581,"width":754,"height":12}},{"id":"52c5cbdd-338a-44d4-b7c0-ab19e4b046b6","block_type":"box","text":"economy and hostile relations with other countries.","page_number":453,"box":{"x":116,"y":597,"width":382,"height":12}},{"id":"a2d4cff5-22d8-432b-9ce1-50a905ce71dc","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could","page_number":453,"box":{"x":117,"y":629,"width":729,"height":13}},{"id":"14b7be55-3f6c-478e-9b4f-afd04f10ff4c","block_type":"box","text":"disrupt economic development. The Chinese economy is vulnerable to the long-running disagreements","page_number":453,"box":{"x":116,"y":645,"width":769,"height":12}},{"id":"5ac712c5-a009-4e7d-8e2c-427fa6ef1aa3","block_type":"box","text":"and religious and nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been","page_number":453,"box":{"x":116,"y":660,"width":752,"height":13}},{"id":"28efda8c-d04e-4d76-9df8-1e485a8f00c4","block_type":"box","text":"tensions between the Chinese government and many people in Hong Kong who perceive China as","page_number":453,"box":{"x":116,"y":676,"width":733,"height":12}},{"id":"9a4b1870-b2b5-47e7-a6f2-f798dd2abd68","block_type":"box","text":"tightening control over Hong Kong’s semi-autonomous liberal political, economic, legal, and social","page_number":453,"box":{"x":116,"y":692,"width":725,"height":12}},{"id":"fb54449e-0d47-4a87-837b-ece5130eb12d","block_type":"box","text":"framework. Protests and unrest have increased tensions even further. Due to the interconnected","page_number":453,"box":{"x":116,"y":707,"width":716,"height":10}},{"id":"475df798-84e7-4a4e-a5bc-590b50f6fd85","block_type":"box","text":"nature of the Hong Kong and Chinese economies, this instability in Hong Kong may cause uncertainty","page_number":453,"box":{"x":117,"y":722,"width":756,"height":13}},{"id":"10bd8085-e9b8-4a68-9333-59544a91a92b","block_type":"box","text":"in the Hong Kong and Chinese markets. China has a complex territorial dispute regarding the","page_number":453,"box":{"x":117,"y":738,"width":691,"height":12}},{"id":"343ea26b-b6ce-4f54-9f2f-a2f8b182c641","block_type":"box","text":"sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":453,"box":{"x":116,"y":753,"width":761,"height":13}},{"id":"58e19b1b-a1fa-489c-b3b0-1ad647dffee5","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse","page_number":453,"box":{"x":116,"y":769,"width":767,"height":12}},{"id":"4d1fc16b-a534-4597-8e63-85ed3e59fd36","block_type":"box","text":"impact on the value of the Fund’s investments in China or Taiwan, may cause a suspension in a","page_number":453,"box":{"x":117,"y":784,"width":712,"height":13}},{"id":"1cde8a11-3df5-40b1-a9dc-935ee3f3d606","block_type":"box","text":"Fund’s ability to trade in certain securities or other assets or may otherwise make such investments","page_number":453,"box":{"x":117,"y":800,"width":736,"height":12}},{"id":"a5b10219-033b-425c-8a8c-b3f4ef7ee983","block_type":"box","text":"impracticable or impossible. Any escalation of hostility between China and Taiwan would likely have a","page_number":453,"box":{"x":117,"y":815,"width":753,"height":13}},{"id":"45ca610e-62f2-4a9c-aeba-eae54b2278b5","block_type":"box","text":"significant adverse impact on the value of the Fund’s investments in both countries and the region. In","page_number":453,"box":{"x":116,"y":831,"width":755,"height":12}},{"id":"7685b508-babe-45e2-9064-f2b30fdb8144","block_type":"box","text":"addition, China has strained international relations with Japan, India, the Philippines and other","page_number":453,"box":{"x":116,"y":846,"width":703,"height":12}},{"id":"b8042baa-a87e-4327-adb2-407a0f2273c5","block_type":"box","text":"neighbors due to territorial disputes, historical animosities and other defense concerns. 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Actual and threatened responses to such activity","page_number":454,"box":{"x":116,"y":102,"width":763,"height":13}},{"id":"b3aedba2-76fa-4700-bef2-05e68ea8a28e","block_type":"box","text":"and strained international relations, including purchasing restrictions, sanctions, tariffs or cyberattacks","page_number":454,"box":{"x":116,"y":118,"width":760,"height":12}},{"id":"bd43ecd0-b43f-4f74-b466-64a71b871b26","block_type":"box","text":"on the Chinese government or Chinese companies, may impact China’s economy and Chinese issuers","page_number":454,"box":{"x":116,"y":134,"width":769,"height":12}},{"id":"880d1cb7-5f85-4d67-a065-12a93051c91a","block_type":"box","text":"of securities in which a Fund invests. China could be affected by military events on the Korean","page_number":454,"box":{"x":116,"y":149,"width":705,"height":12}},{"id":"a953a903-ca3b-4dcf-a700-02e710e9ac94","block_type":"box","text":"peninsula or internal instability within North Korea. These situations may cause uncertainty in the","page_number":454,"box":{"x":117,"y":165,"width":723,"height":12}},{"id":"70e0505a-1d6c-4717-b44c-3d2530cde1b8","block_type":"box","text":"Chinese market and may adversely affect the performance of the Chinese economy.","page_number":454,"box":{"x":117,"y":180,"width":631,"height":12}},{"id":"4be30549-df0b-48c9-9a6f-7783e9230dca","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy,","page_number":454,"box":{"x":116,"y":211,"width":712,"height":12}},{"id":"b6949866-6a94-407c-81f4-61bdeddd66e8","block_type":"box","text":"promote foreign investment in the economy, reduce government control of the economy and develop","page_number":454,"box":{"x":117,"y":227,"width":752,"height":12}},{"id":"78444b2c-285a-4ffd-8edf-76994cb4c92a","block_type":"box","text":"market mechanisms. However, the Chinese government still exercises substantial influence over many","page_number":454,"box":{"x":117,"y":242,"width":768,"height":12}},{"id":"50a1016c-7ecf-4ec5-b092-2348d267222f","block_type":"box","text":"aspects of the private sector and may own or control many companies. Chinese companies, such as","page_number":454,"box":{"x":116,"y":258,"width":751,"height":12}},{"id":"c76f1425-342f-4ea5-a6b0-7da8565e9e9f","block_type":"box","text":"those in the financial services or technology sectors, and potentially other sectors in the future, are","page_number":454,"box":{"x":116,"y":273,"width":736,"height":12}},{"id":"7ed91f38-76c4-4a31-8f31-c95c8c080087","block_type":"box","text":"subject to the risk that Chinese authorities can intervene in their operations and structure. The Chinese","page_number":454,"box":{"x":116,"y":289,"width":769,"height":12}},{"id":"18dc90c6-94f2-4cd3-90ef-5127f5f629b8","block_type":"box","text":"government continues to maintain a major role in economic policymaking and investing in China","page_number":454,"box":{"x":116,"y":304,"width":717,"height":12}},{"id":"f785c028-8d1b-4d42-b2ea-3bad394ecb2c","block_type":"box","text":"involves risk of loss due to expropriation, nationalization, confiscation of assets and property or the","page_number":454,"box":{"x":117,"y":320,"width":736,"height":12}},{"id":"a9f7c4b3-7a40-4814-b5a2-ba2bead321f7","block_type":"box","text":"imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":454,"box":{"x":117,"y":335,"width":647,"height":12}},{"id":"9320aa46-4d48-485f-91d3-d49f6764a1c1","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of","page_number":454,"box":{"x":116,"y":366,"width":764,"height":12}},{"id":"1076abbf-09e3-48e7-bae9-44e47273d025","block_type":"box","text":"trading restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks.","page_number":454,"box":{"x":116,"y":382,"width":761,"height":12}},{"id":"72097bd2-8582-4072-a7a6-02b82866532a","block_type":"box","text":"This may affect market price and liquidity of these stocks, and may have an unpredictable impact on","page_number":454,"box":{"x":116,"y":397,"width":748,"height":12}},{"id":"e0675b1f-3c24-4116-bd93-197cc5ce7937","block_type":"box","text":"the investment activities of the Funds. Furthermore, such market interventions may have a negative","page_number":454,"box":{"x":116,"y":413,"width":745,"height":12}},{"id":"a79f9206-5146-4b4b-a727-9e17678a7908","block_type":"box","text":"impact on market sentiment which may in turn affect the performance of the securities markets and as","page_number":454,"box":{"x":117,"y":428,"width":762,"height":12}},{"id":"d49d5500-b6a4-41fb-bcde-981bd752650b","block_type":"box","text":"a result the performance of the Funds.","page_number":454,"box":{"x":116,"y":444,"width":290,"height":12}},{"id":"c2f5c27d-058f-40c9-bfb3-b3c03415ad15","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of","page_number":454,"box":{"x":117,"y":475,"width":724,"height":12}},{"id":"36409bf0-37ab-407f-a1ea-6594f3747e51","block_type":"box","text":"investors, brokers and other participants than in the United States. Accordingly, issuers of securities in","page_number":454,"box":{"x":117,"y":490,"width":737,"height":12}},{"id":"e430d8d0-441a-4cd8-9782-fbe64ca9682b","block_type":"box","text":"China, including Chinese companies that are listed on U.S. exchanges, are not subject to the same","page_number":454,"box":{"x":117,"y":506,"width":717,"height":12}},{"id":"c84d0ebe-ef27-4a4d-a6f6-47dd7e389659","block_type":"box","text":"degree of regulation as are U.S. issuers with respect to such matters as insider trading rules, tender offer","page_number":454,"box":{"x":116,"y":521,"width":758,"height":12}},{"id":"ada80bd0-692f-4861-bf6a-4bbd5f740dda","block_type":"box","text":"regulation, accounting standards or auditor oversight, stockholder proxy requirements and the","page_number":454,"box":{"x":117,"y":537,"width":677,"height":12}},{"id":"9607e938-49dc-4ca1-abff-0cde6b414bc0","block_type":"box","text":"requirements mandating timely and accurate disclosure of information. Securities markets in China are in","page_number":454,"box":{"x":117,"y":552,"width":758,"height":12}},{"id":"c97f356f-e971-4f19-82ad-a90168f017b1","block_type":"box","text":"the process of change and further development. This may lead to trading volatility, difficulty in the","page_number":454,"box":{"x":116,"y":568,"width":702,"height":12}},{"id":"60c435d4-41a7-4101-8a08-70d0107b5805","block_type":"box","text":"settlement and recording of transactions and difficulty in interpreting and applying the relevant regulation.","page_number":454,"box":{"x":116,"y":583,"width":758,"height":12}},{"id":"046b9208-2c7b-495d-b3cf-ef39657f3066","block_type":"box","text":"Custodians may not be able to offer the level of service and safe-keeping in relation to the settlement and","page_number":454,"box":{"x":117,"y":599,"width":760,"height":12}},{"id":"ffc0f5a3-71af-4d44-9e59-6d39b1429224","block_type":"box","text":"administration of securities in China that is customary in more developed markets. In particular, there is a","page_number":454,"box":{"x":116,"y":614,"width":759,"height":12}},{"id":"9f746eac-6b73-4060-ae18-ec3be72b36b3","block_type":"box","text":"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":454,"box":{"x":117,"y":630,"width":762,"height":12}},{"id":"8301ac3c-cb03-4b45-a978-bee3be79d093","block_type":"box","text":"sub-custodian.","page_number":454,"box":{"x":116,"y":645,"width":110,"height":10}},{"id":"3d34f56c-36d9-43e2-8136-0603c7ae2e47","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or","page_number":454,"box":{"x":116,"y":676,"width":702,"height":12}},{"id":"bca48c4e-0d81-483c-a42c-d413ed2f1d98","block_type":"box","text":"litigation against Chinese companies, and shareholders may have limited legal remedies. The Funds","page_number":454,"box":{"x":117,"y":692,"width":745,"height":12}},{"id":"3098bd23-f035-4b7f-a494-95e161baf2b1","block_type":"box","text":"do not select investments based on investor protection considerations.","page_number":454,"box":{"x":116,"y":707,"width":522,"height":12}},{"id":"ae0c91d5-83af-4f19-9221-40542fc83164","block_type":"box","text":"The Chinese government historically took positions","page_number":454,"box":{"x":116,"y":738,"width":370,"height":12}},{"id":"faaaea72-e967-4053-a5ea-688814ccde60","block_type":"box","text":"that prevented the U.S. P","page_number":454,"box":{"x":492,"y":738,"width":184,"height":12}},{"id":"081107bc-35e5-404a-bc28-05b0b9ae3fd5","block_type":"box","text":"ublic Company Accounting","page_number":454,"box":{"x":677,"y":738,"width":194,"height":12}},{"id":"a4bfea2c-6e04-412d-9c88-223df56575a1","block_type":"box","text":"Oversight Board (“PCAOB”) from inspecting the audit wo","page_number":454,"box":{"x":116,"y":754,"width":412,"height":12}},{"id":"1827aaef-3b58-47d3-92db-4bc25b79c7e0","block_type":"box","text":"rk and practices of accounting firms in mainland","page_number":454,"box":{"x":530,"y":754,"width":345,"height":12}},{"id":"7b9e8203-92f2-4bbf-a4c2-939c7ec5be49","block_type":"box","text":"China and Hong Kong for compliance with U.S. law","page_number":454,"box":{"x":117,"y":769,"width":372,"height":12}},{"id":"43ae4e13-e75c-4100-a269-a8850af9ff3e","block_type":"box","text":"and professional standards. On August 26, 2022, the","page_number":454,"box":{"x":494,"y":769,"width":385,"height":12}},{"id":"0423d5a4-8082-4344-aa85-3c2dca6654ef","block_type":"box","text":"PCAOB signed a Statement of Prot","page_number":454,"box":{"x":117,"y":785,"width":256,"height":12}},{"id":"45916396-f04b-4af8-b946-61dffbaa63b2","block_type":"box","text":"ocol with the China Securities Regulatory Commission and the","page_number":454,"box":{"x":374,"y":785,"width":454,"height":12}},{"id":"d7da94fe-5a58-44cf-93fb-3c595135490e","block_type":"box","text":"Ministry of Finance of the PRC, which marked the first step toward opening access for the PCAOB to","page_number":454,"box":{"x":117,"y":800,"width":732,"height":12}},{"id":"4d605de4-76db-4b68-9665-36334973f0d3","block_type":"box","text":"inspect and investigate registered public accounting firms headquartered in mainland China and Hong","page_number":454,"box":{"x":117,"y":816,"width":739,"height":12}},{"id":"aa35911e-16be-4dfa-8510-1a5dafb662f1","block_type":"box","text":"Kong completely in accordance with U.S. law. However, as this development is relatively recent, the","page_number":454,"box":{"x":117,"y":831,"width":730,"height":12}},{"id":"2affc30a-d53e-4303-871a-43c17a7b5e13","block_type":"box","text":"implementation of the Statement","page_number":454,"box":{"x":117,"y":847,"width":241,"height":12}},{"id":"f2d21290-2c7e-41bd-bf0d-2daf36900027","block_type":"box","text":"of Protocol remains to be tested. Audits performed by PCAOB","page_number":454,"box":{"x":358,"y":847,"width":456,"height":12}},{"id":"e64c378d-bb60-4a35-a95d-ec6c43aa434a","block_type":"box","text":"registered accounting firms in mainland China and Hong Kong may be less reliable than those performed","page_number":454,"box":{"x":117,"y":862,"width":767,"height":12}},{"id":"e23778b8-cd66-4d35-a209-affe183f2479","block_type":"box","text":"by firms subject to PCAOB inspection. Accordingly,","page_number":454,"box":{"x":117,"y":878,"width":376,"height":12}},{"id":"84dad7e4-0432-42d9-bee8-1e71ec753292","block_type":"box","text":"information about the Chinese securities in which the","page_number":454,"box":{"x":494,"y":878,"width":388,"height":9}},{"id":"16f7e560-9c68-4992-a552-f2bd578ab9b9","block_type":"box","text":"II-56","page_number":454,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"c33b4feb-dde1-49c8-869d-d575d8f01a8c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":454,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"37f84aa7-4110-4187-afa4-9a3542b7331a","block_type":"box","text":"Funds invest may be less reliable or complete. U","page_number":455,"box":{"x":117,"y":87,"width":352,"height":12}},{"id":"c4b5d3a8-f97c-4382-b1b7-4ca186a1ed1b","block_type":"box","text":"nder amendments to the Sarbanes-Oxley Act enacted in","page_number":455,"box":{"x":472,"y":87,"width":414,"height":12}},{"id":"aeb929bb-5ef4-4fe2-acf3-ccca322fe2fc","block_type":"box","text":"December 2020, which requires that the PCAOB be permi","page_number":455,"box":{"x":117,"y":102,"width":421,"height":12}},{"id":"7827fad6-a2b9-4c92-b86e-23e6645e3982","block_type":"box","text":"tted to inspect the accounting firm of a U.S.-","page_number":455,"box":{"x":539,"y":102,"width":320,"height":13}},{"id":"d97c72c8-74df-4dd1-a0e0-dbe404ffda3a","block_type":"box","text":"listed Chinese issuer, Chinese companies with securi","page_number":455,"box":{"x":117,"y":118,"width":385,"height":12}},{"id":"c7692469-3c9f-411e-a8f7-f3f5ccf2e94c","block_type":"box","text":"ties listed on U.S. exchanges may be delisted if the","page_number":455,"box":{"x":504,"y":118,"width":376,"height":12}},{"id":"ea37815d-27f5-42dd-b91c-6918e226de35","block_type":"box","text":"PCAOB is unable to inspect the accounting firm.","page_number":455,"box":{"x":117,"y":134,"width":355,"height":12}},{"id":"ce4fe186-97c0-4c89-bdc7-79692cf72c5a","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange","page_number":455,"box":{"x":116,"y":165,"width":763,"height":12}},{"id":"9a07faac-ff8e-411d-b619-6044dc35975c","block_type":"box","text":"control policies and repatriation restrictions imposed by the Chinese government. The imposition of","page_number":455,"box":{"x":116,"y":180,"width":740,"height":12}},{"id":"ff1ca592-0760-4c44-8705-936ce21a8c79","block_type":"box","text":"currency controls may negatively impact performance and liquidity of the Funds as capital may become","page_number":455,"box":{"x":116,"y":196,"width":772,"height":12}},{"id":"a33291ae-21ba-4dc4-9b30-6fa96471e696","block_type":"box","text":"trapped in the PRC. The Funds could be adversely affected by delays in, or a refusal to grant, any","page_number":455,"box":{"x":116,"y":211,"width":732,"height":12}},{"id":"26feda90-33e6-4795-9286-876c57dbf65a","block_type":"box","text":"required governmental approval for repatriation of capital, as well as by the application to the Funds of","page_number":455,"box":{"x":117,"y":227,"width":762,"height":12}},{"id":"964c77ab-4370-4050-8fb2-73e5df43135b","block_type":"box","text":"any restrictions on investments. Investing in entities either in, or which have a substantial portion of","page_number":455,"box":{"x":116,"y":242,"width":740,"height":12}},{"id":"f9296f9d-646e-4026-9be4-c05eee512443","block_type":"box","text":"their operations in, the PRC may require the Funds to adopt special procedures, seek local","page_number":455,"box":{"x":116,"y":258,"width":680,"height":12}},{"id":"157c2004-1894-43f9-be80-db1c922f0a25","block_type":"box","text":"government approvals or take other actions, each of which may involve additional costs and delays to","page_number":455,"box":{"x":116,"y":273,"width":759,"height":12}},{"id":"1cf0ac47-160c-4447-8910-74c96b54ebf6","block_type":"box","text":"the Funds. The Fund may also incur costs in connection with conversions between U.S. dollars and","page_number":455,"box":{"x":116,"y":289,"width":743,"height":12}},{"id":"04159cae-87d4-437e-b7d4-77312f4b7925","block_type":"box","text":"RMB, as well as in connection with conversions between the two separate types of RMB, the onshore","page_number":455,"box":{"x":117,"y":304,"width":758,"height":12}},{"id":"2cd087c1-6db3-40d2-9276-222a248d7c5a","block_type":"box","text":"RMB (“CNY”) and the offshore RMB (“CNH”).","page_number":455,"box":{"x":117,"y":320,"width":340,"height":12}},{"id":"3e7aa58d-b3c3-4176-8a54-fb70b5464463","block_type":"box","text":"Many Chinese companies listed on U.S. exchanges use variable interest entities or “VIEs” in their","page_number":455,"box":{"x":117,"y":351,"width":727,"height":12}},{"id":"b291d00e-2ae2-4d9d-a1be-81dc3de8c52e","block_type":"box","text":"structure as a result of foreign ownership restrictions. In a VIE structure, a Chinese operating company","page_number":455,"box":{"x":116,"y":366,"width":767,"height":12}},{"id":"8fd7eeea-f8e6-43c1-bf28-94ff74587d18","block_type":"box","text":"establishes a shell company in another jurisdiction to issue stock to public shareholders. When a VIE","page_number":455,"box":{"x":116,"y":382,"width":754,"height":12}},{"id":"5dccadcc-c532-474c-ad0c-7b6082d0e167","block_type":"box","text":"structure is used by a Chinese company to list its stock in the U.S., instead of owning the equity","page_number":455,"box":{"x":116,"y":397,"width":715,"height":12}},{"id":"cfb470ed-275a-471c-95da-0000335570d5","block_type":"box","text":"securities of the Chinese company, the U.S.-listed shell company directly or indirectly enters into","page_number":455,"box":{"x":116,"y":413,"width":721,"height":12}},{"id":"0204ffa6-656e-4240-870a-707bcc089c18","block_type":"box","text":"contracts with the Chinese operating company under Chinese law. These contracts provide the U.S.-","page_number":455,"box":{"x":116,"y":428,"width":749,"height":12}},{"id":"1336adf0-27d9-446d-99c1-9059edb4db3b","block_type":"box","text":"listed shell company with only economic exposure to the Chinese company and do not represent","page_number":455,"box":{"x":117,"y":444,"width":722,"height":12}},{"id":"cf4423f9-c070-4d19-9632-bfd312967d18","block_type":"box","text":"equity ownership in the operating company.","page_number":455,"box":{"x":116,"y":459,"width":329,"height":12}},{"id":"c63c2dbd-2d86-4ff3-96f0-094b9a5556e0","block_type":"box","text":"While VIEs are a longstanding practice that is well known to Chinese officials and regulators, they have","page_number":455,"box":{"x":116,"y":490,"width":770,"height":12}},{"id":"2fabbade-cd74-44fd-bbb8-9b6c13785963","block_type":"box","text":"not been formally recognized under Chinese law. The Chinese government has provided guidance to","page_number":455,"box":{"x":117,"y":506,"width":754,"height":12}},{"id":"f34d35e4-e734-4d43-b86b-f692bb7aad21","block_type":"box","text":"and placed restrictions on Chinese-based companies raising capital offshore, including through VIEs.","page_number":455,"box":{"x":116,"y":521,"width":755,"height":12}},{"id":"20a426d0-0382-41e3-93aa-68978f007cb0","block_type":"box","text":"In 2023, the China Securities Regulatory Commission (“CSRC”) released new rules that permit the use","page_number":455,"box":{"x":117,"y":537,"width":768,"height":12}},{"id":"cb9f0ccd-51cc-4300-a4ac-2618ff59d3fa","block_type":"box","text":"of VIE structures, provided they abide by Chinese laws and register with the CSRC. The rules,","page_number":455,"box":{"x":116,"y":552,"width":705,"height":12}},{"id":"6dc237d0-66a8-4f02-9d31-8e1423b1ccfc","block_type":"box","text":"however, may cause Chinese companies to undergo greater scrutiny and add costs to VIE structures.","page_number":455,"box":{"x":117,"y":568,"width":759,"height":12}},{"id":"7849f0c9-eee8-4748-acb8-c74a2c4ae75e","block_type":"box","text":"Intervention, rulemaking or guidance by the Chinese government with respect to VIE structures or the","page_number":455,"box":{"x":117,"y":583,"width":758,"height":12}},{"id":"d1ea788a-663a-46f0-9573-b103364104d8","block_type":"box","text":"non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":455,"box":{"x":117,"y":599,"width":742,"height":12}},{"id":"dccfb100-281d-4e5c-a620-3faad62508ac","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with","page_number":455,"box":{"x":117,"y":614,"width":756,"height":12}},{"id":"fda0c8c6-9f2b-4d92-b9e6-105b2c5f44c4","block_type":"box","text":"the Chinese company and the value of the U.S.-listed stock. Further, the VIE contractual arrangement","page_number":455,"box":{"x":116,"y":630,"width":762,"height":12}},{"id":"4655c983-dde5-403b-b055-7c120e298d56","block_type":"box","text":"would likely be subject to Chinese law and jurisdiction, and remedies available to the U.S.-listed shell","page_number":455,"box":{"x":116,"y":645,"width":754,"height":12}},{"id":"d6346b08-b827-4fe8-934c-39ed64d301d2","block_type":"box","text":"company are uncertain and could be ineffective. In addition to the risk of government intervention,","page_number":455,"box":{"x":116,"y":661,"width":724,"height":12}},{"id":"29ea47a3-2116-4591-8136-ffabe4fcade1","block_type":"box","text":"investments through a VIE structure are subject to the risk that the China-based company (or its","page_number":455,"box":{"x":117,"y":676,"width":711,"height":12}},{"id":"f9eb5b88-419d-4a14-8a53-621a2f798be6","block_type":"box","text":"officers, directors, or Chinese equity owners) may breach those contractual arrangements, or Chinese","page_number":455,"box":{"x":116,"y":692,"width":757,"height":12}},{"id":"1f324013-ab67-44d7-893d-77899c9052c6","block_type":"box","text":"law changes in a way that adversely affects the enforceability of these arrangements, or those","page_number":455,"box":{"x":117,"y":707,"width":697,"height":12}},{"id":"1fc77b54-0322-4f9c-8f8d-e50250da46d1","block_type":"box","text":"contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer","page_number":455,"box":{"x":116,"y":723,"width":703,"height":12}},{"id":"4ee06fa1-1183-4385-a2c7-1c24619604ff","block_type":"box","text":"significant losses on its investments through a VIE structure with little or no recourse available. Any","page_number":455,"box":{"x":116,"y":738,"width":736,"height":12}},{"id":"0865440d-3df1-48fb-acec-4b3276b19060","block_type":"box","text":"change in the operations of entities in a VIE structure, the status of VIE contractual arrangements or","page_number":455,"box":{"x":116,"y":754,"width":743,"height":12}},{"id":"0772830d-22e1-433f-95fa-fe4150c09e92","block_type":"box","text":"the legal or regulatory environment in China, generally or with respect to specific industries, could","page_number":455,"box":{"x":116,"y":769,"width":723,"height":12}},{"id":"18662d6e-fc07-49cd-9591-c6f173f1dcce","block_type":"box","text":"result in significant, and possibly permanent and/or total, losses to a Fund.","page_number":455,"box":{"x":117,"y":785,"width":550,"height":12}},{"id":"539c0484-141a-411b-ad3a-32173419ac6a","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that","page_number":455,"box":{"x":116,"y":816,"width":753,"height":12}},{"id":"7c45be27-a8ff-43f0-b468-5324ffccf911","block_type":"box","text":"such growth rates will recur. Other economic challenges for China include indebtedness, weak","page_number":455,"box":{"x":116,"y":831,"width":706,"height":12}},{"id":"3a5df675-a992-41b3-95a4-0386c7597e6a","block_type":"box","text":"consumer demand, trade tensions, and an aging population. China continues to face pressure from its","page_number":455,"box":{"x":116,"y":847,"width":763,"height":12}},{"id":"17f9fe77-b573-46b4-9ed4-24e9cf83c5a3","block_type":"box","text":"trading partners over its exporting of its excess industrial capacity and overall approach to economic","page_number":455,"box":{"x":116,"y":862,"width":748,"height":12}},{"id":"b8a64b78-8233-4075-a325-015724df4d33","block_type":"box","text":"management. China’s economy is heavily dependent on export growth. Reduction in spending on","page_number":455,"box":{"x":117,"y":878,"width":727,"height":12}},{"id":"332bafca-87c6-44a2-802b-f7230cf931be","block_type":"box","text":"II-57","page_number":455,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"36f6204f-75af-4312-9a85-838ace70c5c4","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":455,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"6c1bf2e3-79be-44b4-935d-d3eba2cdf647","block_type":"box","text":"Chinese products and services, supply chain diversification, institution of additional tariffs, sanctions or","page_number":456,"box":{"x":117,"y":87,"width":765,"height":12}},{"id":"261c0196-80d4-4feb-a535-7ecd253574a1","block_type":"box","text":"other trade barriers (including as a result of heightened trade tensions between China and the United","page_number":456,"box":{"x":116,"y":102,"width":755,"height":13}},{"id":"d1aec14a-cc96-47a6-b46c-b8d9fa5763b4","block_type":"box","text":"States or in response to actual or alleged Chinese cyber activity) or a downturn in any of the","page_number":456,"box":{"x":116,"y":118,"width":688,"height":12}},{"id":"a09cec25-26ed-494b-a329-3c18af8575d0","block_type":"box","text":"economies of China’s key trading partners may have an adverse impact on the Chinese economy and","page_number":456,"box":{"x":116,"y":134,"width":762,"height":12}},{"id":"3197a70a-2159-44b0-85f9-968620a9ca3e","block_type":"box","text":"the companies in which a Fund invests. Certain Chinese companies (which may change from time to","page_number":456,"box":{"x":116,"y":149,"width":753,"height":12}},{"id":"e7947cc3-b5d4-4afd-839b-90a3c26683eb","block_type":"box","text":"time) are directly or indirectly subject to economic or trade restrictions imposed by the U.S. or other","page_number":456,"box":{"x":116,"y":165,"width":741,"height":12}},{"id":"bbf505de-7dc6-4c61-a934-7a5bc03cde62","block_type":"box","text":"governments due to national security, human rights or other concerns of such government. For","page_number":456,"box":{"x":116,"y":180,"width":709,"height":12}},{"id":"c7e6315d-3ef4-4ff7-8659-ea70381f2f0e","block_type":"box","text":"example, certain foreign technology companies are subject to U.S. export controls as those companies","page_number":456,"box":{"x":116,"y":196,"width":769,"height":12}},{"id":"f5b06d25-ea49-4833-95e3-cb90c47c14eb","block_type":"box","text":"are believed to pose a risk to U.S. interests. The U.S. also bans imports of goods produced in certain","page_number":456,"box":{"x":116,"y":211,"width":755,"height":12}},{"id":"9be20d52-ab6e-44de-a0db-35fff4a05b91","block_type":"box","text":"regions of China or by certain Chinese companies due to concerns about forced labor. Such","page_number":456,"box":{"x":117,"y":227,"width":688,"height":12}},{"id":"c2351401-98b9-4869-95ec-480a4ad031d3","block_type":"box","text":"restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any","page_number":456,"box":{"x":117,"y":242,"width":767,"height":12}},{"id":"e870c739-b5f2-4288-b92a-2bb43942497c","block_type":"box","text":"action that targets Chinese financial markets or securities exchanges could interfere with orderly","page_number":456,"box":{"x":116,"y":258,"width":719,"height":12}},{"id":"e892cff9-ef82-4e76-8ac2-aef4b355ef1b","block_type":"box","text":"trading, delay settlement or cause market disruptions. Certain companies may be subject to economic","page_number":456,"box":{"x":116,"y":273,"width":762,"height":12}},{"id":"336495ca-598b-49c3-80ba-ee41d57c86d1","block_type":"box","text":"or trade restrictions (but not investment restrictions) imposed by the U.S. or other governments due to","page_number":456,"box":{"x":116,"y":289,"width":761,"height":12}},{"id":"8f8be20e-a6d6-456a-8a5a-e6c733f41a7e","block_type":"box","text":"national security, human rights or other concerns of such government. So long as these restrictions do","page_number":456,"box":{"x":117,"y":304,"width":764,"height":12}},{"id":"dcfcd0c3-94be-4c88-878b-a3060925430c","block_type":"box","text":"not include restrictions on investments, the Fund may invest in such companies.","page_number":456,"box":{"x":117,"y":320,"width":599,"height":12}},{"id":"da5d0af3-ad62-4421-89cf-ed41721eea7f","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative","page_number":456,"box":{"x":116,"y":352,"width":760,"height":12}},{"id":"8452851b-e27a-40d2-b12b-4d78101a95d5","block_type":"box","text":"guidance or enforcement, possibly with retroactive effect. The interpretation, applicability and","page_number":456,"box":{"x":116,"y":368,"width":695,"height":12}},{"id":"e2f02ef0-b0c5-4b87-bb3a-1e45e84c82ed","block_type":"box","text":"enforcement of such laws by PRC tax authorities are not as consistent and transparent as those of","page_number":456,"box":{"x":116,"y":383,"width":737,"height":12}},{"id":"85c34c0a-6901-42d1-ac1e-e079e37af7ce","block_type":"box","text":"more developed nations, and may vary over time and from region to region. The application and","page_number":456,"box":{"x":117,"y":399,"width":716,"height":12}},{"id":"34474966-df45-45fa-87db-5ec4b9a822aa","block_type":"box","text":"enforcement of PRC tax rules could have a significant adverse effect on a Fund and its investors,","page_number":456,"box":{"x":116,"y":414,"width":727,"height":12}},{"id":"190b8674-bb03-445e-941a-8d410ba8ec71","block_type":"box","text":"particularly in relation to capital gains withholding tax imposed upon non-residents. In addition, the","page_number":456,"box":{"x":117,"y":430,"width":732,"height":12}},{"id":"99307c8d-58c1-452a-9d3b-62807403df47","block_type":"box","text":"accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":456,"box":{"x":116,"y":445,"width":759,"height":12}},{"id":"df652599-e5ba-4303-aae7-ed5edd95004b","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared","page_number":456,"box":{"x":117,"y":461,"width":757,"height":12}},{"id":"ca38180f-75f6-4471-9f81-4ca446a2705c","block_type":"box","text":"in accordance with PRC accounting standards and practice and those prepared in accordance with","page_number":456,"box":{"x":117,"y":476,"width":739,"height":12}},{"id":"8ef89caf-1ec2-4615-a03c-fed6822d0e00","block_type":"box","text":"international accounting standards.","page_number":456,"box":{"x":117,"y":492,"width":264,"height":12}},{"id":"76673ccf-f500-40e7-b9fe-782c228c5bea","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the","page_number":456,"box":{"x":117,"y":524,"width":767,"height":13}},{"id":"7a60ec4f-0bbb-4b30-acb4-8b1f5eeca14e","block_type":"box","text":"country may be subject to other public health threats, infectious illnesses, diseases or similar issues in","page_number":456,"box":{"x":116,"y":540,"width":763,"height":12}},{"id":"40500fce-316c-4b45-9bdf-c7df5e5b07b7","block_type":"box","text":"the future. Any spread of an infectious illness, public health threat or similar issue could reduce","page_number":456,"box":{"x":116,"y":555,"width":709,"height":13}},{"id":"fbb98137-8bfc-4b82-9448-764491f251c3","block_type":"box","text":"consumer demand or economic output, result in market closures, travel restrictions or quarantines, and","page_number":456,"box":{"x":116,"y":571,"width":770,"height":12}},{"id":"d00d4db8-176e-4c35-a588-e92635aade40","block_type":"box","text":"generally have a significant impact on the Chinese economy, which in turn could adversely affect a","page_number":456,"box":{"x":116,"y":586,"width":738,"height":13}},{"id":"671a1409-669f-499f-b700-cb8dc7a66799","block_type":"box","text":"Fund’s investments.","page_number":456,"box":{"x":117,"y":602,"width":153,"height":10}},{"id":"ef4dbc36-b603-4095-8fb0-55959929ff15","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":456,"box":{"x":116,"y":635,"width":308,"height":12}},{"id":"770ef6c9-c63a-4e8f-856e-f94a43f5477b","block_type":"box","text":"General.","page_number":456,"box":{"x":117,"y":659,"width":62,"height":9}},{"id":"77ad9610-8932-489f-98f8-3fee272248ad","block_type":"box","text":"China A-shares are equity securities of companies domiciled in China that trade on Chinese","page_number":456,"box":{"x":180,"y":659,"width":692,"height":12}},{"id":"1feab631-b950-445d-aa63-5988131a7eb9","block_type":"box","text":"stock exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange","page_number":456,"box":{"x":116,"y":674,"width":718,"height":12}},{"id":"31fc949e-1294-4f1a-a93e-b6c72f0c1369","block_type":"box","text":"(“SZSE”) and the Beijing Stock Exchange (“BSE”) (“A-shares”). Foreign investment in A-shares on the","page_number":456,"box":{"x":117,"y":690,"width":756,"height":12}},{"id":"ba93ae48-a394-47a6-aa8f-d7a4da296057","block_type":"box","text":"SSE and SZSE is not permitted, other than pursuant to available exceptions, such as through a","page_number":456,"box":{"x":116,"y":705,"width":707,"height":12}},{"id":"690d1e55-4b4e-4905-8c9e-0c34dedf0441","block_type":"box","text":"qualified foreign investor approved pursuant to the relevant mainland China laws and regulations as","page_number":456,"box":{"x":116,"y":721,"width":740,"height":12}},{"id":"993348b8-bf38-4213-a47e-f91a45c540a0","block_type":"box","text":"may be promulgated and/or amended from time to time (“QFI”).","page_number":456,"box":{"x":117,"y":736,"width":468,"height":12}},{"id":"68aef61c-2cbd-4d0c-bfe3-8130677e2053","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE","page_number":456,"box":{"x":117,"y":769,"width":723,"height":12}},{"id":"862058c0-0a17-4855-b619-c6c4ccc6d76c","block_type":"box","text":"(“Stock Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect","page_number":456,"box":{"x":117,"y":784,"width":706,"height":13}},{"id":"b913974f-21f1-4aff-a616-b0a27619aa05","block_type":"box","text":"program or the Shenzhen-Hong Kong Stock Connect program, as applicable (each, a “Stock Connect”","page_number":456,"box":{"x":117,"y":800,"width":759,"height":12}},{"id":"42e6ad62-6b72-4c46-8a0e-2eb42881acd6","block_type":"box","text":"and collectively, “Stock Connects”). Each Stock Connect is a securities trading and clearing links","page_number":456,"box":{"x":116,"y":815,"width":717,"height":13}},{"id":"b1e765ab-cfaa-4a87-9687-85444a727f5c","block_type":"box","text":"program established by The Stock Exchange of Hong Kong Limited (“SEHK”), the Hong Kong","page_number":456,"box":{"x":117,"y":831,"width":699,"height":12}},{"id":"d66254fe-d2f9-475e-ad45-b52f1b085559","block_type":"box","text":"Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable, and China","page_number":456,"box":{"x":116,"y":846,"width":700,"height":13}},{"id":"2c2e0748-0e5a-49a0-83ff-fbbe2f295eea","block_type":"box","text":"Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":456,"box":{"x":116,"y":862,"width":753,"height":12}},{"id":"dbeb069d-484d-41de-bb76-4db9206bf13a","block_type":"box","text":"market access between the PRC and Hong Kong by permitting investors to trade and settle shares on","page_number":456,"box":{"x":117,"y":877,"width":761,"height":13}},{"id":"983918a2-6bc7-4fe7-8885-284d17383294","block_type":"box","text":"II-58","page_number":456,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"13a94d4d-a52d-42b6-89c7-2b1ad8c646d9","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":456,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a99d98d5-1934-4d43-b2dc-2fc71d5c20ac","block_type":"box","text":"each market through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock","page_number":457,"box":{"x":116,"y":87,"width":746,"height":12}},{"id":"b6704650-4835-471f-87f8-a851ae221408","block_type":"box","text":"Connect Securities listed on the SSE or SZSE, as applicable, would be effectuated through its Hong","page_number":457,"box":{"x":117,"y":102,"width":747,"height":13}},{"id":"345214e7-7d6b-4c8b-9112-f5a0b09b9b5a","block_type":"box","text":"Kong broker and a securities trading service company established by SEHK.","page_number":457,"box":{"x":117,"y":118,"width":572,"height":12}},{"id":"3bd1098c-7618-4b17-9f97-29d5012c6241","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock","page_number":457,"box":{"x":116,"y":149,"width":703,"height":12}},{"id":"1d1a6c2e-a9c8-40ae-916e-85ebacb9f390","block_type":"box","text":"Connect, trading through a Stock Connect’s Northbound Trading Link is subject to daily investment","page_number":457,"box":{"x":117,"y":165,"width":738,"height":12}},{"id":"0c924c37-5f4b-49e7-a398-158d673aad38","block_type":"box","text":"quota limitations which require that buy orders for Stock Connect Securities be rejected once the daily","page_number":457,"box":{"x":116,"y":180,"width":761,"height":12}},{"id":"3febb6bc-9558-4326-a82c-c06aa8c4c424","block_type":"box","text":"quota is exceeded (although a Fund will be permitted to sell their Stock Connect Securities regardless","page_number":457,"box":{"x":116,"y":196,"width":761,"height":12}},{"id":"6b7f7748-d0d7-42f1-bc2e-12ef3ef96ad3","block_type":"box","text":"of the quota). These limitations may restrict a Fund from investing in Stock Connect Securities on a","page_number":457,"box":{"x":116,"y":211,"width":741,"height":12}},{"id":"5e8badb4-6491-4ece-b1fb-28e068359019","block_type":"box","text":"timely basis, which could affect the Fund’s ability to effectively pursue its investment strategy.","page_number":457,"box":{"x":116,"y":227,"width":698,"height":12}},{"id":"3f983081-0bbd-40c4-9a6c-b3db2047b3e8","block_type":"box","text":"Investment quotas are also subject to change. Investment in Stock Connect Securities through a Stock","page_number":457,"box":{"x":117,"y":242,"width":767,"height":12}},{"id":"ce5daeaf-f701-4a26-b444-91aa0f2434fb","block_type":"box","text":"Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund.","page_number":457,"box":{"x":117,"y":258,"width":741,"height":12}},{"id":"af072fc8-3a2a-4af8-ac12-15618ddaa4e9","block_type":"box","text":"Stock Connect Securities purchased through Stock Connects generally may not be sold or otherwise","page_number":457,"box":{"x":116,"y":273,"width":753,"height":12}},{"id":"7f286a1c-cb5f-42e9-b8dc-49ac61d87a76","block_type":"box","text":"transferred other than through Stock Connects in accordance with applicable rules. For example, the","page_number":457,"box":{"x":116,"y":289,"width":752,"height":12}},{"id":"548fd26f-7559-4bad-ba4d-1045016eb92f","block_type":"box","text":"PRC regulations require that in order for an investor to sell any Stock Connect Securities on a certain","page_number":457,"box":{"x":117,"y":304,"width":755,"height":12}},{"id":"b305d37f-ee37-423f-a881-9f250090b961","block_type":"box","text":"trading day, there must be sufficient Stock Connect Securities in the investor’s account before the","page_number":457,"box":{"x":116,"y":320,"width":730,"height":12}},{"id":"7b9f8322-7a06-4846-bd9b-7548128d848f","block_type":"box","text":"market opens on that day. If there are insufficient Stock Connect Securities in the investor’s account,","page_number":457,"box":{"x":117,"y":335,"width":751,"height":12}},{"id":"10ce1386-9c0e-436d-8506-c4eb2e3a80e6","block_type":"box","text":"the sell order will be rejected by the SSE or SZSE, as applicable. SEHK carries out pre-trade checking","page_number":457,"box":{"x":116,"y":351,"width":765,"height":12}},{"id":"7ef6d8a7-32b1-4a44-bcb6-708b29cea6b3","block_type":"box","text":"on sell orders of certain stocks listed on the SSE market (“SSE Securities”) or SZSE market (“SZSE","page_number":457,"box":{"x":116,"y":366,"width":746,"height":12}},{"id":"6267fd62-4337-44c9-8ce5-5b99438ed9ee","block_type":"box","text":"Securities”) of its participants (i.e., stock brokers) to ensure that this requirement is satisfied. While","page_number":457,"box":{"x":116,"y":382,"width":736,"height":12}},{"id":"5a5cd33a-4f34-4f08-9db5-4f7a23902fca","block_type":"box","text":"shares must be designated as eligible to be traded under a Stock Connect, those shares may also lose","page_number":457,"box":{"x":116,"y":397,"width":770,"height":12}},{"id":"1340885b-5bf3-4403-87b3-96a600abde7b","block_type":"box","text":"such designation, and if this occurs, such shares may be sold but cannot be purchased through a","page_number":457,"box":{"x":116,"y":413,"width":728,"height":12}},{"id":"6cfb5ebf-4dad-40db-ae1f-31f17a9e43ed","block_type":"box","text":"Stock Connect. In addition, Stock Connects will only operate on days when both the Chinese and Hong","page_number":457,"box":{"x":116,"y":428,"width":771,"height":12}},{"id":"27f5dacf-6a85-43b2-8073-8277e675674e","block_type":"box","text":"Kong markets are open for trading, and banking services are available in both markets on the","page_number":457,"box":{"x":117,"y":444,"width":698,"height":12}},{"id":"9c42c9a4-3073-478e-b62e-a4da7a2f95ce","block_type":"box","text":"corresponding settlement days. Therefore, an investment in Stock Connect Securities through a Stock","page_number":457,"box":{"x":116,"y":459,"width":763,"height":12}},{"id":"db8d62f3-09fb-40af-ab13-371b6aa6dc04","block_type":"box","text":"Connect may subject a Fund to a risk of price fluctuations on days when the Chinese market is open,","page_number":457,"box":{"x":117,"y":475,"width":754,"height":12}},{"id":"e35cd05d-d3c3-4ed5-8917-b2965f018752","block_type":"box","text":"but a Stock Connect is not trading. Moreover, day (turnaround) trading is not permitted on the Stock","page_number":457,"box":{"x":117,"y":490,"width":745,"height":12}},{"id":"aa8f4bf3-c789-4376-961f-695ffb303b58","block_type":"box","text":"Connect Securities market. If an investor buys Stock Connect Securities on day “T,” the investor will","page_number":457,"box":{"x":117,"y":506,"width":746,"height":12}},{"id":"c18901ea-170f-4055-931b-8420c568f081","block_type":"box","text":"only be able to sell the Stock Connect Securities on or after day T+1. Further, since all trades of Stock","page_number":457,"box":{"x":116,"y":521,"width":763,"height":12}},{"id":"f9797172-8565-4a62-ae03-303736b3f0c3","block_type":"box","text":"Connect Securities must be settled in RMB, investors must have timely access to a reliable supply of","page_number":457,"box":{"x":117,"y":537,"width":752,"height":12}},{"id":"333c41da-2f33-4eee-950d-8ccc6f2fe92d","block_type":"box","text":"offshore RMB, which cannot be guaranteed. There is also no assurance that RMB will not be subject to","page_number":457,"box":{"x":116,"y":552,"width":771,"height":12}},{"id":"0af68392-bb53-4964-9412-e0eeffa5a1bc","block_type":"box","text":"devaluation. Any devaluation of RMB could adversely affect a Fund’s investments. If a Fund holds a","page_number":457,"box":{"x":116,"y":568,"width":746,"height":12}},{"id":"999978ae-4de7-404e-85ad-5a8410de7118","block_type":"box","text":"class of shares denominated in a local currency other than RMB, the Fund will be exposed to currency","page_number":457,"box":{"x":116,"y":583,"width":765,"height":12}},{"id":"fef37960-8b51-42f3-a1a8-4cf4485f429d","block_type":"box","text":"exchange risk if the Fund converts the local currency into RMB for investments in Stock Connect","page_number":457,"box":{"x":116,"y":599,"width":722,"height":12}},{"id":"4095ece0-a7fc-4a26-a9a5-65e8dea01a98","block_type":"box","text":"Securities. A Fund may also incur conversion costs.","page_number":457,"box":{"x":116,"y":614,"width":390,"height":12}},{"id":"7e8a3c06-2640-4768-824f-91c41d24b02b","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held","page_number":457,"box":{"x":116,"y":645,"width":722,"height":12}},{"id":"a6662ab5-52d5-48bd-a7e7-5eb2efdc7238","block_type":"box","text":"through HKSCC as nominee on behalf of investors. The precise nature and rights of a Fund as the","page_number":457,"box":{"x":116,"y":661,"width":731,"height":12}},{"id":"6ff2f2c9-dbb1-469b-b2ce-6e7c49bf5fc5","block_type":"box","text":"beneficial owner of the SSE Securities or SZSE Securities through HKSCC as nominee is not well","page_number":457,"box":{"x":117,"y":676,"width":725,"height":12}},{"id":"65d20c3a-db09-4273-b8c4-8319e17f8cd3","block_type":"box","text":"defined under the PRC laws. There is a lack of a clear definition of, and distinction between, legal","page_number":457,"box":{"x":116,"y":692,"width":722,"height":12}},{"id":"8d736ca0-327d-418f-9568-b0b4aa629b9d","block_type":"box","text":"ownership and beneficial ownership under the PRC laws and there have been few cases involving a","page_number":457,"box":{"x":116,"y":707,"width":742,"height":12}},{"id":"eaac602f-9d46-4431-9dcd-b894697d7c01","block_type":"box","text":"nominee account structure in the PRC courts. The exact nature and methods of enforcement of the","page_number":457,"box":{"x":117,"y":723,"width":735,"height":9}},{"id":"4c251e0f-786d-4aff-8208-c22c98465a6e","block_type":"box","text":"rights and interests of a Fund under the PRC laws is also uncertain. In the unlikely event that HKSCC","page_number":457,"box":{"x":117,"y":738,"width":751,"height":12}},{"id":"b9dfc179-cd6d-44d8-b62d-3088f23b2771","block_type":"box","text":"becomes subject to winding up proceedings in Hong Kong, there is a risk that the SSE Securities or","page_number":457,"box":{"x":117,"y":754,"width":739,"height":12}},{"id":"43240ce8-2617-4086-99cc-a517ee32ecb7","block_type":"box","text":"SZSE Securities may not be regarded as held for the beneficial ownership of a Fund or as part of the","page_number":457,"box":{"x":116,"y":769,"width":749,"height":12}},{"id":"a8e47720-e351-4202-8099-f9819111de67","block_type":"box","text":"general assets of HKSCC available for general distribution to its creditors. Notwithstanding the fact that","page_number":457,"box":{"x":116,"y":785,"width":765,"height":12}},{"id":"e8b79f77-8308-4c29-a00b-3679b9b49a35","block_type":"box","text":"HKSCC does not claim proprietary interests in the SSE Securities or SZSE Securities held in its","page_number":457,"box":{"x":117,"y":800,"width":709,"height":12}},{"id":"6896d197-2fb3-442f-b95c-b4aa48e4dde2","block_type":"box","text":"omnibus stock account in the CSDCC, the CSDCC as the share registrar for SSE- or SZSE-listed","page_number":457,"box":{"x":116,"y":816,"width":723,"height":12}},{"id":"00537d31-a0ef-47f7-b95b-5276879786a1","block_type":"box","text":"companies will still treat HKSCC as one of the shareholders when it handles corporate actions in","page_number":457,"box":{"x":116,"y":831,"width":722,"height":12}},{"id":"1da6e4b5-d226-4968-adf4-7476c20e8ebf","block_type":"box","text":"respect of such SSE Securities or SZSE Securities. HKSCC monitors the corporate actions affecting","page_number":457,"box":{"x":117,"y":847,"width":749,"height":12}},{"id":"3838c581-9e4b-4e62-b398-521bea44fd4c","block_type":"box","text":"SSE Securities and SZSE Securities and keeps participants of Central Clearing and Settlement","page_number":457,"box":{"x":116,"y":862,"width":712,"height":12}},{"id":"1ff1ff5a-f164-40a0-8646-904ecfdcc670","block_type":"box","text":"System (“CCASS”) informed of all such corporate actions that require CCASS participants to take","page_number":457,"box":{"x":116,"y":878,"width":729,"height":12}},{"id":"3e825aa8-57c8-486e-85ec-5b62d6513ef6","block_type":"box","text":"II-59","page_number":457,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"26680a04-edcb-4d5f-9c45-7e8b056279db","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":457,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f65b5a17-2daf-4e8a-addf-8d2f8d7f852d","block_type":"box","text":"steps in order to participate in them. Investors may only exercise their voting rights by providing their","page_number":458,"box":{"x":116,"y":87,"width":750,"height":12}},{"id":"a2bdceb7-b4c0-45e2-b591-09585f32d398","block_type":"box","text":"voting instructions to HKSCC through participants of CCASS. All voting instructions from CCASS","page_number":458,"box":{"x":116,"y":102,"width":724,"height":13}},{"id":"bc29f519-4b42-4440-8f99-713609d48794","block_type":"box","text":"participants will be consolidated by HKSCC, who will then submit a combined single voting instruction","page_number":458,"box":{"x":117,"y":118,"width":757,"height":12}},{"id":"bb9b5990-24a1-4b4e-97bc-d410ba2debac","block_type":"box","text":"to the relevant SSE- or SZSE-listed company. As a result, a Fund may suffer difficulties or delays in","page_number":458,"box":{"x":116,"y":134,"width":745,"height":12}},{"id":"afd805dd-7282-4604-807b-dfdb4d71125d","block_type":"box","text":"enforcing its rights in SSE Securities or SZSE Securities.","page_number":458,"box":{"x":116,"y":149,"width":427,"height":12}},{"id":"e8ed821e-af8e-4bb3-8dbb-dd9cad2e1004","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any","page_number":458,"box":{"x":117,"y":180,"width":728,"height":12}},{"id":"717c0cf8-032b-49f8-bfca-67043dbff06c","block_type":"box","text":"nationality who suffer pecuniary losses as a result of default of a licensed intermediary or authorized","page_number":458,"box":{"x":117,"y":196,"width":747,"height":12}},{"id":"43a5b19b-08bb-45ee-96c8-73e6e6bd1ebe","block_type":"box","text":"financial institution in relation to exchange-traded products in Hong Kong. For defaults occurring on or","page_number":458,"box":{"x":116,"y":211,"width":760,"height":12}},{"id":"3c3f1c6a-9f8e-48fb-a37b-afc82924a0c2","block_type":"box","text":"after January 1, 2020, Hong Kong’s Investor Compensation Fund covers investors’ losses in relation to","page_number":458,"box":{"x":116,"y":227,"width":769,"height":12}},{"id":"f93614d4-e28e-4687-95e8-8b1a9f19316a","block_type":"box","text":"securities (i) that are traded on the SSE or the SZSE and (ii) in respect of which an order for sale or","page_number":458,"box":{"x":116,"y":242,"width":743,"height":12}},{"id":"a4c669b0-346c-480f-93a0-f0765a3e80a2","block_type":"box","text":"purchase is permitted to be routed through the Northbound Trading Link of a Stock Connect. On the","page_number":458,"box":{"x":117,"y":258,"width":746,"height":12}},{"id":"736bbd8f-16e8-4d52-95f9-17b8a00f6296","block_type":"box","text":"other hand, since a Fund carries out Northbound trading through securities brokers in Hong Kong but","page_number":458,"box":{"x":116,"y":273,"width":756,"height":12}},{"id":"cf3f3ede-ba78-400b-a918-f4ae586b63ea","block_type":"box","text":"not PRC brokers, it is not protected by the China Securities Investor Protection Fund in the PRC.","page_number":458,"box":{"x":117,"y":289,"width":722,"height":12}},{"id":"6aff73f3-8dd4-4aa5-8b7b-8cf4a44f900f","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information","page_number":458,"box":{"x":117,"y":320,"width":737,"height":12}},{"id":"050eb395-891e-40fb-b1d8-1ccf217b7321","block_type":"box","text":"technology capability, risk management and other requirements as may be specified by the relevant","page_number":458,"box":{"x":116,"y":335,"width":746,"height":12}},{"id":"0f4bddcb-c033-42ec-95e4-19624522321a","block_type":"box","text":"exchange and/or clearing house. Further, the “connectivity” in Stock Connects requires routing of","page_number":458,"box":{"x":116,"y":351,"width":725,"height":12}},{"id":"e2761d4d-7cb4-49c4-aeda-4a5eee7cd379","block_type":"box","text":"orders across the border of Hong Kong and the PRC. This requires the development of new","page_number":458,"box":{"x":116,"y":366,"width":687,"height":12}},{"id":"8f9198b9-18ab-46cc-ad8b-2144d2e8432a","block_type":"box","text":"information technology systems on the part of SEHK and exchange participants. There is no assurance","page_number":458,"box":{"x":117,"y":382,"width":771,"height":12}},{"id":"449506ce-ed7b-4f0e-b2b7-c4e9280cec26","block_type":"box","text":"that the systems of SEHK and market participants will function properly or will continue to be adapted","page_number":458,"box":{"x":116,"y":397,"width":757,"height":12}},{"id":"a5840e78-9328-4434-a4ff-73a63dfbeb7d","block_type":"box","text":"to changes and developments in both markets. In the event that the relevant systems fail to function","page_number":458,"box":{"x":116,"y":413,"width":747,"height":12}},{"id":"b4ac6739-1ed2-4bfd-9f1c-f60afe9e54f3","block_type":"box","text":"properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":458,"box":{"x":117,"y":428,"width":667,"height":12}},{"id":"428e1b79-e623-482e-9ad0-051cbe0f52e9","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen","page_number":458,"box":{"x":116,"y":459,"width":737,"height":12}},{"id":"a500a019-a334-461a-9e39-eb332011addc","block_type":"box","text":"Hong Kong Stock Connect program launched in December 2016. Each program does not have an","page_number":458,"box":{"x":117,"y":475,"width":733,"height":12}},{"id":"1bd2bde1-3163-416d-9fc1-d0dd8aa4badb","block_type":"box","text":"extensive operating history. New or revised regulations may be issued from time to time by the","page_number":458,"box":{"x":116,"y":490,"width":707,"height":12}},{"id":"f8d05d51-dfec-4ba1-b6fd-db3f3febde0e","block_type":"box","text":"regulators and stock exchanges in China and Hong Kong in connection with operations, legal","page_number":458,"box":{"x":117,"y":506,"width":695,"height":12}},{"id":"fb4831de-db5c-45b4-8d76-15c432ac466f","block_type":"box","text":"enforcement and cross-border trades under Stock Connects. In addition, there can be no assurance","page_number":458,"box":{"x":116,"y":521,"width":748,"height":11}},{"id":"91ea62e3-5144-49fe-a9bd-e3c0f90f4ab5","block_type":"box","text":"that Stock Connect will not be discontinued. A Fund may be adversely affected as a result of such","page_number":458,"box":{"x":116,"y":537,"width":731,"height":12}},{"id":"303ce2ad-f5a9-4a2b-82f1-99efa21011a6","block_type":"box","text":"changes. Furthermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":458,"box":{"x":116,"y":552,"width":714,"height":12}},{"id":"f9238cdf-7332-4108-af6f-3482621673c9","block_type":"box","text":"significantly and issues may arise from the differences on an on-going basis. In the event that the","page_number":458,"box":{"x":116,"y":568,"width":727,"height":12}},{"id":"7ede4b1a-a0b0-477c-84e8-f1be195f19c9","block_type":"box","text":"relevant systems fail to function properly, trading in both markets through Stock Connects could be","page_number":458,"box":{"x":117,"y":583,"width":737,"height":12}},{"id":"d87717af-e7c5-48f1-84e9-563f65a78bf6","block_type":"box","text":"disrupted and a Fund’s ability to achieve its investment objective may be adversely affected. In","page_number":458,"box":{"x":116,"y":599,"width":708,"height":12}},{"id":"2cccc743-518b-425c-95f5-e3da8b073368","block_type":"box","text":"addition, a Fund’s investments in Stock Connect Securities through Stock Connects are generally","page_number":458,"box":{"x":116,"y":614,"width":728,"height":12}},{"id":"d0b5cdf7-1a4a-4053-9e8f-cfee3b5091b0","block_type":"box","text":"subject to Chinese securities regulations and listing rules, among other restrictions. Further, different","page_number":458,"box":{"x":116,"y":630,"width":751,"height":12}},{"id":"8e74c976-7cab-48b2-a6a6-16a456dfea86","block_type":"box","text":"fees, costs and taxes are imposed on foreign investors acquiring Stock Connect Securities through","page_number":458,"box":{"x":116,"y":645,"width":739,"height":12}},{"id":"7c3906b5-5626-4e97-a969-aa31b14afb6b","block_type":"box","text":"Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":458,"box":{"x":116,"y":661,"width":722,"height":12}},{"id":"3efe2a4f-007b-4e4d-bf92-7b785400036a","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":458,"box":{"x":116,"y":676,"width":618,"height":12}},{"id":"ac1a2bbe-3790-42e9-b678-a828bd7ec158","block_type":"box","text":"Suspension Risk.","page_number":458,"box":{"x":117,"y":707,"width":127,"height":12}},{"id":"f0be09cb-f322-4c58-a11e-172de2033343","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at","page_number":458,"box":{"x":251,"y":707,"width":620,"height":12}},{"id":"80441571-9d9d-4a25-9cfe-e699ef2e9d2f","block_type":"box","text":"times when the relevant SSE Securities and SZSE Securities may be sold or purchased on the","page_number":458,"box":{"x":116,"y":723,"width":704,"height":12}},{"id":"0d1a07d9-d3bb-487f-bb8c-e7b0f0ce00bb","block_type":"box","text":"relevant Chinese stock exchange. The SSE Securities and SZSE Securities markets have a higher","page_number":458,"box":{"x":117,"y":738,"width":733,"height":12}},{"id":"a71c593f-d2f5-4ed5-ba67-ea78c0c19047","block_type":"box","text":"propensity for trading suspensions than many other global equity markets. Each of the SEHK, SSE and","page_number":458,"box":{"x":117,"y":754,"width":765,"height":12}},{"id":"fc3f952a-a20a-4d7c-acdc-a059ddffabb7","block_type":"box","text":"SZSE reserves the right to suspend trading of SSE Securities and SZSE Securities purchased on the","page_number":458,"box":{"x":116,"y":769,"width":751,"height":12}},{"id":"bfbf30a8-020e-4e51-9b30-4b02d2b4136e","block_type":"box","text":"Stock Connects if necessary for ensuring an orderly and fair market and ensuring that risks are","page_number":458,"box":{"x":116,"y":785,"width":705,"height":12}},{"id":"d6c9e20a-db2b-456e-96ba-5ff866d7646d","block_type":"box","text":"managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":458,"box":{"x":117,"y":800,"width":720,"height":12}},{"id":"10d1b4a6-9538-46e8-a201-53e6b9b65689","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit","page_number":458,"box":{"x":117,"y":816,"width":722,"height":12}},{"id":"c5688a21-1aca-4a21-9ea4-579df8677639","block_type":"box","text":"breakers” and other measures to halt or suspend Northbound trading. Where a suspension in the","page_number":458,"box":{"x":117,"y":831,"width":725,"height":12}},{"id":"4d6f7fe3-1189-4287-9fa6-01d706cfa1a4","block_type":"box","text":"Northbound trading through Stock Connect is effected, the Fund’s ability to access the PRC market will","page_number":458,"box":{"x":117,"y":847,"width":769,"height":12}},{"id":"0716780c-55ed-42cf-a303-93d20c09ec75","block_type":"box","text":"be adversely affected. Trading suspensions in certain stocks could lead to greater market execution","page_number":458,"box":{"x":117,"y":862,"width":745,"height":12}},{"id":"4b1c6a65-712c-4c6b-90e0-4eafd818ab26","block_type":"box","text":"risk and costs for a Fund. The SSE and SZSE currently","page_number":458,"box":{"x":117,"y":878,"width":415,"height":12}},{"id":"b53bef20-482c-4d85-86b9-ef835a167e21","block_type":"box","text":"apply a daily price limit, generally set at 10%,","page_number":458,"box":{"x":533,"y":878,"width":340,"height":12}},{"id":"47bf1056-c17c-4373-9e5b-ac8b993c9f3b","block_type":"box","text":"II-60","page_number":458,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"4444808c-6de8-43cf-939a-c405d6376f02","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":458,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ef308701-47a1-4092-a31e-84365524dcd0","block_type":"box","text":"of the amount of fluctuation permitted in the prices of the relevant SSE Securities and SZSE Securities","page_number":459,"box":{"x":116,"y":87,"width":766,"height":12}},{"id":"f13e2867-d218-4b0c-907f-9451acc8b574","block_type":"box","text":"during a single trading day. The daily price limit refers to price movements only and does not restrict","page_number":459,"box":{"x":116,"y":102,"width":747,"height":13}},{"id":"cbd3abe8-dbb6-48fe-81ea-52bec1b2edcf","block_type":"box","text":"trading within the relevant limit. There can be no assurance that a liquid market on an exchange will","page_number":459,"box":{"x":116,"y":118,"width":744,"height":12}},{"id":"52907955-b7b8-4a1e-b219-316d7c25ecae","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":459,"box":{"x":116,"y":134,"width":598,"height":12}},{"id":"d33767f5-a4dd-44f2-b200-a3e63e82a29b","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":459,"box":{"x":116,"y":165,"width":575,"height":12}},{"id":"23cc36d7-b396-4284-a502-ba9f61fcbf5c","block_type":"box","text":"A Fund may invest","page_number":459,"box":{"x":691,"y":165,"width":144,"height":12}},{"id":"e60f66ec-dacc-4bad-91ee-805a0a00dd47","block_type":"box","text":"directly in the domestic bond market in the PRC (the “China Interbank Bond Market”) through the","page_number":459,"box":{"x":116,"y":180,"width":724,"height":12}},{"id":"07becfce-cbdd-4ade-86b7-59cfd295fd4d","block_type":"box","text":"northbound trading of Bond Connect (“Bond Connect”). Bond Connect is an initiative launched in July","page_number":459,"box":{"x":117,"y":196,"width":755,"height":12}},{"id":"ba01b937-6f05-4814-8d58-04809ddc4698","block_type":"box","text":"2017 for mutual bond market access between the PRC and Hong Kong, established by the China","page_number":459,"box":{"x":116,"y":211,"width":729,"height":12}},{"id":"d1588d80-3e1c-4199-928a-5150d67ae717","block_type":"box","text":"Foreign Exchange Trade System & National Interbank Funding Centre (“CFETS”), China Central","page_number":459,"box":{"x":117,"y":227,"width":722,"height":12}},{"id":"6ada49fd-c409-4ffb-9b8f-eba5c03e63a1","block_type":"box","text":"Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”), Hong Kong Exchanges","page_number":459,"box":{"x":117,"y":242,"width":752,"height":12}},{"id":"9b28ea87-8622-4df4-8c8c-163ad1a7589c","block_type":"box","text":"and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":459,"box":{"x":116,"y":258,"width":699,"height":12}},{"id":"af6f3c3e-8ddd-4b55-9172-59f644a49a70","block_type":"box","text":"regulations in the PRC, eligible foreign investors are allowed to invest in the bonds circulated in the","page_number":459,"box":{"x":117,"y":273,"width":738,"height":12}},{"id":"8d64b81e-dde0-46e7-91e6-9c77232050aa","block_type":"box","text":"China Interbank Bond Market through Bond Connect. Eligible foreign investors may submit trade","page_number":459,"box":{"x":117,"y":289,"width":721,"height":12}},{"id":"66d25702-fcac-41e2-bdc6-b919c9a5abda","block_type":"box","text":"requests for bonds circulated in the China Interbank Bond Market through offshore electronic bond","page_number":459,"box":{"x":117,"y":304,"width":735,"height":12}},{"id":"bbadc6f4-2210-4ae4-9892-dc846d8cd8f2","block_type":"box","text":"trading platforms (such as Tradeweb), which will in turn transmit their requests for quotation to CFETS.","page_number":459,"box":{"x":116,"y":320,"width":768,"height":12}},{"id":"2478efc7-4b45-4a45-8a8b-f59e03f68fee","block_type":"box","text":"CFETS will send the requests for quotation to a number of approved onshore dealers (including market","page_number":459,"box":{"x":117,"y":335,"width":770,"height":12}},{"id":"d0917a0d-5cbe-49cf-b1d2-81a1b55b8924","block_type":"box","text":"makers and others engaged in the market making business) in the PRC. The approved onshore","page_number":459,"box":{"x":117,"y":351,"width":715,"height":12}},{"id":"405ab8d9-e2dc-4757-9a80-29ff0c72857e","block_type":"box","text":"dealer(s) will respond to the requests for quotation via CFETS and CFETS will send their responses to","page_number":459,"box":{"x":116,"y":366,"width":765,"height":12}},{"id":"9273256b-a29a-4a12-9fce-c98152265c6a","block_type":"box","text":"those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":459,"box":{"x":116,"y":382,"width":759,"height":12}},{"id":"905510c2-e395-4f03-81cd-b8e4c3c7119d","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":459,"box":{"x":116,"y":397,"width":603,"height":12}},{"id":"535874c1-60c6-48e9-bd2b-8ecf69f6bc1d","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect","page_number":459,"box":{"x":116,"y":428,"width":761,"height":12}},{"id":"2a96cb0e-7d88-4ae3-a974-8eb69c0e326a","block_type":"box","text":"will be effected through the settlement and custody link between CMU, as an offshore custody agent,","page_number":459,"box":{"x":116,"y":444,"width":755,"height":12}},{"id":"ce734aa4-156e-4eef-997e-b57272f64ee2","block_type":"box","text":"and CDCC and SCH, as onshore custodians and clearing institutions in the PRC. Under the settlement","page_number":459,"box":{"x":116,"y":459,"width":768,"height":12}},{"id":"ae0772f9-e98e-4e9b-9a16-030459352438","block_type":"box","text":"link, CDCC or SCH will effect gross settlement of confirmed trades onshore and CMU will process","page_number":459,"box":{"x":117,"y":475,"width":730,"height":12}},{"id":"e5fa3999-7f92-4fc1-b3cf-44b2c1e6f6da","block_type":"box","text":"bond settlement instructions from CMU members on behalf of eligible foreign investors in accordance","page_number":459,"box":{"x":117,"y":490,"width":757,"height":12}},{"id":"55287f8a-c196-422d-993c-6dc37bc36a92","block_type":"box","text":"with its relevant rules. Since the introduction in August 2018 of delivery versus payment (DVP)","page_number":459,"box":{"x":116,"y":506,"width":705,"height":12}},{"id":"d9e2a251-c049-4417-9017-cf109d9cc4cc","block_type":"box","text":"settlement in respect of Bond Connect, the movement of cash and securities is carried out","page_number":459,"box":{"x":116,"y":521,"width":675,"height":12}},{"id":"0a2a75c2-2c47-47d9-96e3-ba1fb308e11b","block_type":"box","text":"simultaneously on a real-time basis. Pursuant to the prevailing regulations in the PRC, CMU, as the","page_number":459,"box":{"x":116,"y":537,"width":743,"height":12}},{"id":"48865771-d0f5-498e-8720-7506dd1110d1","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee","page_number":459,"box":{"x":116,"y":552,"width":759,"height":12}},{"id":"2ae67372-e541-4ae6-9a5b-f02d96ba7519","block_type":"box","text":"accounts with the onshore custody agent recognized by the People’s Bank of China (","page_number":459,"box":{"x":116,"y":568,"width":631,"height":12}},{"id":"49100b20-9955-4f8b-9d89-690308912747","block_type":"box","text":"i.e.","page_number":459,"box":{"x":749,"y":568,"width":20,"height":9}},{"id":"522390ca-3714-423e-b4a0-192034ec97ea","block_type":"box","text":", CDCC and","page_number":459,"box":{"x":772,"y":568,"width":94,"height":11}},{"id":"23d1c16f-4e29-45f8-9d56-475609082bc1","block_type":"box","text":"SCH). All bonds traded by eligible foreign investors through Bond Connect will be registered in the","page_number":459,"box":{"x":116,"y":583,"width":734,"height":12}},{"id":"542db519-0816-4474-8f4b-063d74f20f27","block_type":"box","text":"name of CMU, which will hold such bonds as a nominee owner. Therefore, a Fund will be exposed to","page_number":459,"box":{"x":117,"y":599,"width":754,"height":12}},{"id":"b31b1fa8-d8c3-4733-8ba2-c00582e5697e","block_type":"box","text":"custody risks with respect to CMU. In the remote event of a CDCC or SCH default, CMU’s liabilities in","page_number":459,"box":{"x":116,"y":614,"width":759,"height":12}},{"id":"fca2ba2a-0ebd-4e65-92e7-c3d3f447aaf4","block_type":"box","text":"Bond Connect bonds under its market contracts with clearing participants will be limited to assisting","page_number":459,"box":{"x":117,"y":630,"width":741,"height":12}},{"id":"e9cfe535-e2cf-424a-a63a-f4825484c4f3","block_type":"box","text":"clearing participants in pursuing their claims against CDCC or SCH. The Fund may suffer delay in the","page_number":459,"box":{"x":116,"y":645,"width":758,"height":12}},{"id":"bb8e41e1-253e-45c1-8758-2b774d46a39e","block_type":"box","text":"recovery process or may not fully recover its losses from CDCC or SCH. In addition, as the relevant","page_number":459,"box":{"x":117,"y":661,"width":739,"height":12}},{"id":"ab70ca83-13fb-4bd2-92c0-0c64beee5455","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by","page_number":459,"box":{"x":116,"y":676,"width":733,"height":12}},{"id":"887a52e7-09f3-478e-a944-827b58d87fb8","block_type":"box","text":"third parties, including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or","page_number":459,"box":{"x":116,"y":692,"width":723,"height":12}},{"id":"b185cc86-07d0-483e-b7c8-36fb60dee787","block_type":"box","text":"errors on the part of such third parties.","page_number":459,"box":{"x":116,"y":707,"width":284,"height":12}},{"id":"d5863bfa-df3c-4131-b95c-add8204ff5fd","block_type":"box","text":"The precise nature and rights of a Fund as the benef","page_number":459,"box":{"x":116,"y":738,"width":384,"height":12}},{"id":"4c5e9705-235d-4254-b3bc-a79ab7cdeb27","block_type":"box","text":"icial owner of the bonds traded in the China","page_number":459,"box":{"x":500,"y":738,"width":315,"height":10}},{"id":"beffda82-5742-42aa-8b65-ed630f5a1306","block_type":"box","text":"Interbank Bond Market through CMU as nominee is","page_number":459,"box":{"x":117,"y":754,"width":374,"height":12}},{"id":"4a4a9c99-e4d5-4e45-823e-2eacfaaba7ed","block_type":"box","text":"not well-defined under PRC law. There is a lack of a","page_number":459,"box":{"x":497,"y":754,"width":377,"height":9}},{"id":"e75d910b-6127-4aa6-912e-f7c08754cd33","block_type":"box","text":"clear definition of, and distinction between, legal","page_number":459,"box":{"x":116,"y":769,"width":347,"height":12}},{"id":"93ace3db-6f12-420f-8981-b419c0ff3681","block_type":"box","text":"ownership and beneficial ownership under PRC law and","page_number":459,"box":{"x":469,"y":769,"width":407,"height":12}},{"id":"0919441d-1c62-44ba-9bba-4012164b6fec","block_type":"box","text":"there have been few cases involving a nominee account","page_number":459,"box":{"x":116,"y":785,"width":409,"height":12}},{"id":"5ade342f-e69f-4143-8362-91b2721d84e1","block_type":"box","text":"structure in the PRC courts. The exact nature","page_number":459,"box":{"x":530,"y":785,"width":329,"height":9}},{"id":"97ef43a1-295f-4494-b715-661abc166dd4","block_type":"box","text":"and methods of enforcement of the rights and inte","page_number":459,"box":{"x":116,"y":800,"width":363,"height":12}},{"id":"7b011cbc-515e-47ad-8a4e-9fcbc5a1013d","block_type":"box","text":"rests of a Fund under PRC law are also uncertain.","page_number":459,"box":{"x":480,"y":800,"width":363,"height":10}},{"id":"39b69fa7-256a-48b0-8e78-09f2c5c7ddf8","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of certain bonds in the China","page_number":459,"box":{"x":117,"y":831,"width":750,"height":12}},{"id":"2bb0b61f-b84b-4b97-a993-6ac8db38e783","block_type":"box","text":"Interbank Bond Market may result in prices of certain bonds traded on such market fluctuating","page_number":459,"box":{"x":117,"y":847,"width":702,"height":12}},{"id":"ca7ff29c-f1bd-4617-aa27-ade7984cec52","block_type":"box","text":"significantly. A Fund investing in such market is therefore subject to liquidity and volatility risks. The","page_number":459,"box":{"x":116,"y":862,"width":742,"height":12}},{"id":"963e01ff-99f7-4087-a2dd-94ef8128c523","block_type":"box","text":"bid-ask spreads of the prices of such securities may be large, and a Fund may therefore incur","page_number":459,"box":{"x":117,"y":878,"width":700,"height":12}},{"id":"4919e618-56d6-41b3-aaf1-c325d06a2141","block_type":"box","text":"II-61","page_number":459,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"ce8a700e-cadb-45c7-a025-cbe09ca9479e","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":459,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"819c59bf-1b60-4ce8-af24-6ac9b3284be7","block_type":"box","text":"significant costs and may suffer losses when selling such investments. The bonds traded in the China","page_number":460,"box":{"x":116,"y":87,"width":759,"height":12}},{"id":"a46fd392-33b9-420d-8995-8c38a144939a","block_type":"box","text":"Interbank Bond Market may be difficult or impossible to sell, which may impact a Fund’s ability to","page_number":460,"box":{"x":117,"y":102,"width":722,"height":13}},{"id":"96e5acc7-29a9-4dc2-a4ce-710be3e5e99a","block_type":"box","text":"acquire or dispose of such securities at their expected prices.","page_number":460,"box":{"x":116,"y":118,"width":460,"height":12}},{"id":"b1331ca9-7d2a-4829-8a40-befc2491218c","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks.","page_number":460,"box":{"x":117,"y":150,"width":766,"height":12}},{"id":"96575888-a5cd-47b7-806b-87ee1d59806f","block_type":"box","text":"The relevant rules and regulations are subject to change, which may have potential retrospective","page_number":460,"box":{"x":116,"y":166,"width":724,"height":12}},{"id":"79aa03ea-b77b-41a4-92cc-383259ab1dbd","block_type":"box","text":"effect, and there can be no assurance that Bond Connect will not be discontinued or abolished.","page_number":460,"box":{"x":116,"y":181,"width":711,"height":11}},{"id":"bc9f6f14-7dc9-4cbf-9061-7faa86d41a01","block_type":"box","text":"Furthermore, the securities regimes and legal systems of China and Hong Kong differ significantly and","page_number":460,"box":{"x":117,"y":196,"width":764,"height":13}},{"id":"e016dac1-5c13-47dc-a694-6ef4961db581","block_type":"box","text":"issues may arise based on these differences. In the event that the relevant authorities suspend","page_number":460,"box":{"x":117,"y":212,"width":709,"height":12}},{"id":"6c4768b8-e2e2-4fc5-a738-d4593bf45434","block_type":"box","text":"account opening or trading on the China Interbank Bond Market, a Fund’s ability to invest in the China","page_number":460,"box":{"x":116,"y":227,"width":762,"height":13}},{"id":"756d8451-d754-4549-a252-cf80a847f9f0","block_type":"box","text":"Interbank Bond Market will be adversely affected and limited. In such event, the Fund’s ability to","page_number":460,"box":{"x":117,"y":243,"width":716,"height":12}},{"id":"10247323-8c3f-406b-a7ab-5ccfae03ea73","block_type":"box","text":"achieve its investment objective will be negatively affected and, after exhausting other trading","page_number":460,"box":{"x":116,"y":259,"width":699,"height":12}},{"id":"bc8f3711-968d-4033-8c34-21785f574e45","block_type":"box","text":"alternatives, the Fund may suffer substantial losses as a result. Further, if Bond Connect is not","page_number":460,"box":{"x":116,"y":274,"width":707,"height":12}},{"id":"d5d5546b-1f19-4cb0-8541-68e00b150b0a","block_type":"box","text":"operating, a Fund may not be able to acquire or dispose of bonds through Bond Connect in a timely","page_number":460,"box":{"x":116,"y":290,"width":745,"height":12}},{"id":"c97aa0f5-ac54-4a52-9fd0-4707245e7617","block_type":"box","text":"manner, which could adversely affect the Fund’s performance.","page_number":460,"box":{"x":117,"y":305,"width":467,"height":12}},{"id":"02530540-5f3f-4049-a539-069e343e212d","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and","page_number":460,"box":{"x":116,"y":337,"width":687,"height":12}},{"id":"1864d18e-892f-4d43-853c-2f06a42dccb9","block_type":"box","text":"operational systems. There is no assurance that such systems will function properly or will continue to","page_number":460,"box":{"x":116,"y":352,"width":761,"height":13}},{"id":"2da352ac-cb3e-4d9d-afa9-3f06053dd569","block_type":"box","text":"be adapted to changes and developments in the market. In the event that the relevant systems fail to","page_number":460,"box":{"x":117,"y":368,"width":753,"height":12}},{"id":"8961d030-1e7f-445c-a3c6-7e39f78c03a5","block_type":"box","text":"function properly, trading through Bond Connect may be disrupted. A Fund’s ability to trade through","page_number":460,"box":{"x":116,"y":384,"width":744,"height":12}},{"id":"3b476d49-6e9a-4471-b510-249afec8d66c","block_type":"box","text":"Bond Connect (and hence to pursue its investment strategy) may therefore be adversely affected. In","page_number":460,"box":{"x":117,"y":399,"width":749,"height":12}},{"id":"e7ea8483-1f0b-4580-8269-ec7589b44e26","block_type":"box","text":"addition, where a Fund invests in the China Interbank Bond Market through Bond Connect, it may be","page_number":460,"box":{"x":116,"y":415,"width":753,"height":12}},{"id":"5753a9bd-6296-435e-b7c2-a95c3d5f923e","block_type":"box","text":"subject to risks of delays inherent in the order placing and/or settlement systems.","page_number":460,"box":{"x":116,"y":430,"width":607,"height":12}},{"id":"2c121c7e-b6d3-49d9-8e2a-9330f36474d9","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not","page_number":460,"box":{"x":117,"y":462,"width":746,"height":12}},{"id":"70955a54-b5b8-4207-890c-f81f4e6f3b06","block_type":"box","text":"freely convertible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed","page_number":460,"box":{"x":116,"y":477,"width":740,"height":13}},{"id":"17ea4279-506f-4258-8847-f615ecd078e0","block_type":"box","text":"that investors will have timely access to a reliable supply of RMB.","page_number":460,"box":{"x":116,"y":493,"width":490,"height":12}},{"id":"73152676-426a-4c75-afeb-291870378ac7","block_type":"box","text":"Tax Risk — Withholding Income Tax Risk.","page_number":460,"box":{"x":118,"y":525,"width":317,"height":12}},{"id":"f7868bff-a094-4167-98da-6e310ab0e5ca","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced","page_number":460,"box":{"x":116,"y":549,"width":697,"height":12}},{"id":"3255aad8-e773-4dd3-86c9-f451b3081be8","block_type":"box","text":"dividends and interests from non-government bonds paid to a non-PRC tax resident enterprise, unless","page_number":460,"box":{"x":116,"y":564,"width":765,"height":12}},{"id":"f43e5b84-9a3d-41c6-9237-ba671b69ee67","block_type":"box","text":"the rate is reduced under an applicable tax treaty. From a technical perspective, withholding income","page_number":460,"box":{"x":116,"y":580,"width":746,"height":12}},{"id":"9906d760-5c31-4d86-b530-577a0961e562","block_type":"box","text":"tax is also applicable to capital gains realized by foreign investors on the disposal of PRC equity","page_number":460,"box":{"x":116,"y":595,"width":717,"height":12}},{"id":"0551d8ad-0543-4008-95fe-2d9dc3528a17","block_type":"box","text":"interests.","page_number":460,"box":{"x":117,"y":611,"width":72,"height":9}},{"id":"0a550d5f-2d63-48ac-ab0c-a38cc4196a28","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":460,"box":{"x":116,"y":643,"width":735,"height":12}},{"id":"a6c4faac-676c-4620-970a-e4daf0270b23","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and","page_number":460,"box":{"x":116,"y":675,"width":761,"height":12}},{"id":"48aa6d5f-b78f-4983-822c-5454446d706a","block_type":"box","text":"the State Taxation Administration (“STA”), acting with State Council’s approval, jointly released","page_number":460,"box":{"x":116,"y":690,"width":703,"height":12}},{"id":"8ebed811-49d7-4b06-bd5f-f740717abe84","block_type":"box","text":"Circular 79, which temporarily exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi","page_number":460,"box":{"x":117,"y":706,"width":760,"height":12}},{"id":"e54ba924-7b4b-4f08-9c82-ec03ca3baa08","block_type":"box","text":"Qualified Foreign Institutional Investors (“RQFIIs”) from tax on capital gains derived from the trading","page_number":460,"box":{"x":116,"y":721,"width":740,"height":12}},{"id":"59e4a4dc-fc03-4906-a5a1-d6e1c859155f","block_type":"box","text":"of shares and other equity interest investments on or after November 17, 2014. Subsequently,","page_number":460,"box":{"x":116,"y":737,"width":698,"height":12}},{"id":"c8f3d56e-7b56-4ed5-bfa9-39aed78fb6bd","block_type":"box","text":"Circulars 81 and 127 were issued to temporarily exempt tax on capital gains derived from trading of","page_number":460,"box":{"x":117,"y":752,"width":738,"height":12}},{"id":"f91e5c09-78c9-4470-9a90-669c0a84b480","block_type":"box","text":"equity securities of companies domiciled in the PRC that trade on Chinese stock exchanges","page_number":460,"box":{"x":116,"y":768,"width":682,"height":12}},{"id":"bde2ee45-612b-4d76-b8ed-3d94d7a2ba9c","block_type":"box","text":"(“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong","page_number":460,"box":{"x":117,"y":783,"width":745,"height":12}},{"id":"d7cc1a4c-c3ff-4f65-bc9e-dde214e8920e","block_type":"box","text":"Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”).","page_number":460,"box":{"x":116,"y":799,"width":741,"height":12}},{"id":"28ce8cab-87fa-4d32-9384-009bbc676889","block_type":"box","text":"The duration of the temporary exemptions is not stated in the circulars and is subject to termination by","page_number":460,"box":{"x":116,"y":814,"width":758,"height":12}},{"id":"ec55d437-4ea3-4744-bf86-095ef03d30e9","block_type":"box","text":"the PRC tax authorities with or without notice.","page_number":460,"box":{"x":116,"y":830,"width":344,"height":9}},{"id":"4e3434dc-3384-4b18-9517-f898db9deffb","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign","page_number":460,"box":{"x":116,"y":862,"width":703,"height":12}},{"id":"cb8a61cb-639f-4762-81e3-d567ed57e274","block_type":"box","text":"institutional investors are temporarily exempt from withholding income tax with respect to interest","page_number":460,"box":{"x":117,"y":877,"width":723,"height":12}},{"id":"f394617e-e897-4800-95fc-d2d4db9f5fa6","block_type":"box","text":"II-62","page_number":460,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"c0242616-a566-4d69-a5ec-d1b7030b376a","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":460,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a6374ae3-7633-453c-99b5-9cc709738b5b","block_type":"box","text":"income on bonds derived from the PRC bond market from November 7, 2018 to November 6, 2021.","page_number":461,"box":{"x":117,"y":87,"width":745,"height":11}},{"id":"8870aef5-514e-460a-be04-318311d7de45","block_type":"box","text":"On November 22, 2021, the MoF and STA issued Public Notice 34 to extend the temporary exemption","page_number":461,"box":{"x":116,"y":102,"width":765,"height":13}},{"id":"b3eb25a3-7e03-43f0-8b85-843082cebaa7","block_type":"box","text":"from November 7, 2021 to December 31, 2025. On January 15, 2026, it was announced via Public","page_number":461,"box":{"x":116,"y":118,"width":736,"height":12}},{"id":"975b6849-206a-4fb8-a340-97f7c1e05142","block_type":"box","text":"Notice No. 5 of 2026 that the exemption was extended through December 31, 2027.","page_number":461,"box":{"x":117,"y":134,"width":628,"height":12}},{"id":"1c596da2-07a0-4388-965f-7c9314d03f6a","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":461,"box":{"x":118,"y":165,"width":250,"height":12}},{"id":"befbd439-a83a-4417-a0c2-cd8422963d32","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the","page_number":461,"box":{"x":370,"y":165,"width":483,"height":12}},{"id":"009e1af5-af6d-4671-a057-71c20aacbf24","block_type":"box","text":"Fund, including PRC sourced interest income on non-government bonds and trading gains.","page_number":461,"box":{"x":117,"y":180,"width":674,"height":12}},{"id":"18b920ce-b043-4061-811e-0c59345cabdc","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":461,"box":{"x":116,"y":211,"width":735,"height":12}},{"id":"3b57d707-88bf-4917-b58b-04f8e7901250","block_type":"box","text":"VAT exemptions currently apply to capital gains from trading of QFII and RQFII products, A-Shares","page_number":461,"box":{"x":116,"y":242,"width":741,"height":12}},{"id":"b901946b-e2b6-4aec-8e42-0f25e8a340ec","block_type":"box","text":"traded on the Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":461,"box":{"x":116,"y":258,"width":699,"height":9}},{"id":"b8044ba4-bd12-41e6-8284-978e9e345a6f","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign","page_number":461,"box":{"x":116,"y":289,"width":694,"height":12}},{"id":"30cb5585-b46c-4309-b4f9-80bd6a7d7603","block_type":"box","text":"institutional investors are temporarily exempt from VAT with respect to interest income on bonds","page_number":461,"box":{"x":117,"y":304,"width":718,"height":12}},{"id":"9ea4cd96-a473-4892-b0b5-26cccca5dd55","block_type":"box","text":"derived from the PRC bond market from November 7, 2018 to November 6, 2021. On November 22,","page_number":461,"box":{"x":116,"y":320,"width":750,"height":11}},{"id":"b5dd1b9e-d093-4e35-ae2e-5d9885598bef","block_type":"box","text":"2021, the MoF and STA jointly issued Public Notice 34 to extend the temporary exemption from","page_number":461,"box":{"x":116,"y":335,"width":714,"height":12}},{"id":"0985f87c-ba72-4feb-ade2-2c287b5b48a9","block_type":"box","text":"November 7, 2021 to December 31, 2025. However, on July 31, 2025, the MoF and STA jointly issued","page_number":461,"box":{"x":117,"y":351,"width":764,"height":12}},{"id":"d046e443-9a67-4b8e-833a-6da2ca634f62","block_type":"box","text":"Public Notice No 4 of 2025, stating that VAT will apply with respect to interest income derived from","page_number":461,"box":{"x":117,"y":366,"width":735,"height":12}},{"id":"2ed0e95f-6656-497f-9713-eb2c2726fcd9","block_type":"box","text":"treasury bonds, local government bonds and financial bonds issued on or after August 8, 2025. It is","page_number":461,"box":{"x":116,"y":382,"width":742,"height":12}},{"id":"214114b9-9b67-48eb-bcfc-70f872f8874c","block_type":"box","text":"understood that Public Notice No 4 of 2025 does not supersede the afore-mentioned exemption for","page_number":461,"box":{"x":117,"y":397,"width":739,"height":12}},{"id":"59fa8473-f58d-41b6-a87c-551012d983e5","block_type":"box","text":"foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":461,"box":{"x":116,"y":413,"width":668,"height":12}},{"id":"7cceef52-fa24-43b1-a7e9-3c3272ffb984","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement","page_number":461,"box":{"x":116,"y":444,"width":754,"height":12}},{"id":"36cc026c-95d2-4019-a00a-8808c92ce0c8","block_type":"box","text":"by the PRC tax authorities may result in a loss which could be material to the Fund. There is a risk the","page_number":461,"box":{"x":117,"y":459,"width":761,"height":12}},{"id":"7abf0e17-51fd-4c5b-87dc-893f0cfbb602","block_type":"box","text":"PRC tax authorities may withdraw the temporary tax exemptions in the future and seek to collect taxes","page_number":461,"box":{"x":117,"y":475,"width":765,"height":12}},{"id":"c70454b0-42cc-4551-90c7-7aab9c3ab517","block_type":"box","text":"realized on the sale of A-Shares or PCR sourced interest income on non-government bonds received","page_number":461,"box":{"x":117,"y":490,"width":756,"height":12}},{"id":"0d6659cd-9629-481a-b76c-d6ef96d63230","block_type":"box","text":"by the Fund without giving any prior notice. If the temporary tax exemptions are withdrawn, any taxes","page_number":461,"box":{"x":117,"y":506,"width":755,"height":12}},{"id":"36347e19-2c58-476c-9bbe-a5fa0c564933","block_type":"box","text":"may be directly borne by or indirectly passed on to the Fund and may result in a substantial impact to","page_number":461,"box":{"x":117,"y":521,"width":755,"height":12}},{"id":"c88c6e07-96c2-403b-9a81-cc5ff7049734","block_type":"box","text":"its net asset value. As with any net asset value adjustment, investors may be advantaged or","page_number":461,"box":{"x":117,"y":537,"width":687,"height":12}},{"id":"16f1d457-e069-4361-9077-1d051c7f738c","block_type":"box","text":"disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":461,"box":{"x":116,"y":552,"width":763,"height":12}},{"id":"b420243b-9f93-4e37-8c00-dedfe8e49cf7","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":461,"box":{"x":116,"y":568,"width":494,"height":12}},{"id":"75e1bfcc-d77f-437f-a527-af1e710de303","block_type":"box","text":"BlackRock will keep the provisioning policy for tax liability under review and may, in its discretion from","page_number":461,"box":{"x":117,"y":599,"width":758,"height":12}},{"id":"3a40c3d0-5f2c-4441-8890-127dfee208c9","block_type":"box","text":"time to time, make a provision for potential tax liabilities if in its opinion such provision is warranted or","page_number":461,"box":{"x":116,"y":614,"width":756,"height":12}},{"id":"4fc5c4ff-a436-4978-a673-318aeb14e89b","block_type":"box","text":"as further clarified by the PRC in notifications.","page_number":461,"box":{"x":116,"y":630,"width":345,"height":12}},{"id":"562c5b92-83cd-4236-bcd1-2cae707f83a5","block_type":"box","text":"Investment in Other Investment Companies.","page_number":461,"box":{"x":116,"y":661,"width":350,"height":12}},{"id":"eb22420c-e9ff-4629-ab47-d6099d808306","block_type":"box","text":"Each Fund may, subject to applicable law, invest in","page_number":461,"box":{"x":474,"y":661,"width":378,"height":12}},{"id":"504f15d7-ebab-4d13-a683-97faa5e473a7","block_type":"box","text":"other investment companies (including investment companies managed by BlackRock and its","page_number":461,"box":{"x":116,"y":676,"width":694,"height":12}},{"id":"59817226-76b0-4bf0-8113-9de9ad1eee1c","block_type":"box","text":"affiliates), including money market funds and ETFs, which are typically open-end funds or unit","page_number":461,"box":{"x":116,"y":692,"width":697,"height":12}},{"id":"0c1ac9fe-7bd7-489b-8f71-491f992417d2","block_type":"box","text":"investment trusts listed on a stock exchange. Under Section 12(d)(1)(A) of the Investment Company","page_number":461,"box":{"x":117,"y":707,"width":743,"height":12}},{"id":"af022d27-b799-4593-9f6a-72054123c276","block_type":"box","text":"Act, however, a Fund may invest up to 10% of its total assets in securities of other investment","page_number":461,"box":{"x":116,"y":723,"width":696,"height":12}},{"id":"d7fe9abf-11af-4248-9458-44a1a77c40b7","block_type":"box","text":"companies (measured at the time of such investment). In addition, under Section 12(d)(1)(A) of the","page_number":461,"box":{"x":116,"y":738,"width":734,"height":12}},{"id":"27d90167-454d-4b90-af5b-144c815a92b5","block_type":"box","text":"Investment Company Act a Fund may not acquire securities of an investment company if such","page_number":461,"box":{"x":117,"y":754,"width":698,"height":12}},{"id":"c18b24ef-f3cc-43fe-bab0-72620816aee8","block_type":"box","text":"acquisition would cause the Fund to own more than 3% of the total outstanding voting stock of such","page_number":461,"box":{"x":116,"y":769,"width":739,"height":12}},{"id":"19f4beb4-3a88-47ad-8c98-fcc4c94bd32c","block_type":"box","text":"investment company and a Fund may not invest in another investment company if such investment","page_number":461,"box":{"x":117,"y":785,"width":734,"height":12}},{"id":"cb28cffb-b2bf-48ba-8445-5a8d4da84419","block_type":"box","text":"would cause more than 5% of the value of the Fund’s total assets to be invested in securities of such","page_number":461,"box":{"x":116,"y":800,"width":747,"height":10}},{"id":"5f180139-74e0-4a98-9aa0-99adfbcd2990","block_type":"box","text":"investment company. (These limits do not restrict a Feeder Fund from investing all of its assets in","page_number":461,"box":{"x":117,"y":816,"width":721,"height":12}},{"id":"9cdab5cf-df77-450f-ad57-635ae33683b4","block_type":"box","text":"shares of its Master Portfolio.) In addition to the restrictions on investing in other investment companies","page_number":461,"box":{"x":116,"y":831,"width":771,"height":12}},{"id":"c0361d36-ad9a-48f5-8f07-62025888684d","block_type":"box","text":"discussed above, under Section 12(d)(1)(C) of the Investment Company Act a Fund may not invest in","page_number":461,"box":{"x":116,"y":847,"width":759,"height":12}},{"id":"69073691-0316-4be5-944a-d141486c1dc5","block_type":"box","text":"a registered closed-end investment company if such investment would cause the Fund and other","page_number":461,"box":{"x":116,"y":862,"width":724,"height":12}},{"id":"ca4dde09-7d20-42da-9604-4bd8e885899b","block_type":"box","text":"BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock","page_number":461,"box":{"x":117,"y":878,"width":760,"height":12}},{"id":"6ead895e-455e-4182-a3bc-17f117201931","block_type":"box","text":"II-63","page_number":461,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"f5f1942d-e142-4360-ad8d-faf702ba6683","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":461,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9a59d41d-8d7e-4ad0-88fc-2eb3463482df","block_type":"box","text":"of such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company","page_number":462,"box":{"x":116,"y":87,"width":761,"height":12}},{"id":"ca3e630a-809b-4a44-a9ee-850c1508f0c5","block_type":"box","text":"Act, these percentage limitations do not apply to investments in affiliated investment companies,","page_number":462,"box":{"x":116,"y":102,"width":719,"height":13}},{"id":"2eb6ade3-3cb3-4aeb-882b-5525b4902889","block_type":"box","text":"including ETFs, subject to certain conditions. In addition, a Fund may be able to rely on certain rules","page_number":462,"box":{"x":117,"y":118,"width":747,"height":12}},{"id":"44a0f289-973e-4c16-a512-68d5a8e882b6","block_type":"box","text":"under the Investment Company Act to invest in shares of money market funds or other investment","page_number":462,"box":{"x":117,"y":134,"width":733,"height":12}},{"id":"b49e7c82-802b-4324-91f9-9f2e31435886","block_type":"box","text":"companies beyond the statutory limits noted above, but subject to certain conditions.","page_number":462,"box":{"x":116,"y":149,"width":633,"height":12}},{"id":"e97b1222-f632-434d-81e1-1c447f1ca4ec","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and","page_number":462,"box":{"x":116,"y":177,"width":723,"height":12}},{"id":"01a38f67-a2a4-4a9a-8eef-d0b31b27d3d7","block_type":"box","text":"selection risk.","page_number":462,"box":{"x":116,"y":192,"width":106,"height":10}},{"id":"382c8416-6fea-4155-8d95-c1d7e2b56baf","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an","page_number":462,"box":{"x":116,"y":220,"width":740,"height":12}},{"id":"54b7f4f0-595e-4c17-8813-7e9566ac47c6","block_type":"box","text":"exchange may at times be acquired at market prices representing premiums to their NAVs. In addition,","page_number":462,"box":{"x":116,"y":236,"width":767,"height":12}},{"id":"634e7ce3-59f1-4704-af3a-b73479bca9d6","block_type":"box","text":"investment companies held by a Fund that trade on an exchange could trade at a discount from NAV,","page_number":462,"box":{"x":117,"y":251,"width":758,"height":12}},{"id":"e463dbcf-a1dd-4760-b569-62cde8d90d63","block_type":"box","text":"and such discount could increase while the Fund holds the shares. If the market price of shares of an","page_number":462,"box":{"x":116,"y":267,"width":756,"height":12}},{"id":"2e87d274-0b1f-429f-b94b-8d4baa94e3f0","block_type":"box","text":"exchange-traded investment company decreases below the price that the Fund paid for the shares and","page_number":462,"box":{"x":116,"y":282,"width":771,"height":12}},{"id":"2eacebe4-0e3a-42d8-a473-478ffc580fb4","block_type":"box","text":"the Fund were to sell its shares of such investment company at a time when the market price is lower","page_number":462,"box":{"x":116,"y":298,"width":757,"height":12}},{"id":"665aabb7-e55d-44a1-8661-feb335e3d2ac","block_type":"box","text":"than the price at which it purchased the shares, the Fund would experience a loss.","page_number":462,"box":{"x":116,"y":313,"width":617,"height":12}},{"id":"6240b0ef-8640-49b4-9661-ead39fe73d66","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment","page_number":462,"box":{"x":117,"y":341,"width":698,"height":12}},{"id":"b82ff64b-b21f-488f-b1ae-d857039b3dca","block_type":"box","text":"companies, shareholders would bear both their proportionate share of expenses in the Fund and,","page_number":462,"box":{"x":116,"y":356,"width":727,"height":12}},{"id":"b5e72836-925a-4ad8-994b-72a570e5bbee","block_type":"box","text":"indirectly, the expenses of such investment companies. Such expenses, both at the Fund level and","page_number":462,"box":{"x":117,"y":371,"width":739,"height":12}},{"id":"9aac9704-9b63-42bd-afcc-7d638084ba26","block_type":"box","text":"acquired investment company level, would include management and advisory fees, unless such fees","page_number":462,"box":{"x":116,"y":386,"width":753,"height":12}},{"id":"147189f9-3ea8-4b6c-ae10-33f0e21a6379","block_type":"box","text":"have been waived by BlackRock. Please see the relevant Fund’s Prospectus to determine whether any","page_number":462,"box":{"x":117,"y":402,"width":769,"height":12}},{"id":"fa41ebce-2ef4-4cf5-affe-4aa9be9278a0","block_type":"box","text":"such management and advisory fees have been waived by BlackRock. Investments by a Fund in","page_number":462,"box":{"x":116,"y":417,"width":724,"height":12}},{"id":"322fc4ae-6598-4b17-8e13-05315b047f56","block_type":"box","text":"wholly owned investment entities created under the laws of certain countries will not be deemed an","page_number":462,"box":{"x":116,"y":432,"width":740,"height":12}},{"id":"e5fe94e3-f878-4db0-959c-5dcb2faf3a98","block_type":"box","text":"investment in other investment companies. Pursuant to guidance issued by the staff of the","page_number":462,"box":{"x":117,"y":447,"width":674,"height":12}},{"id":"18506e39-41d9-454d-8fa2-938e707a3f9b","block_type":"box","text":"Commission, fees and expenses of money market funds used for the investment of cash collateral","page_number":462,"box":{"x":117,"y":463,"width":733,"height":12}},{"id":"bf8a05e4-45c4-456c-bea9-08122274127f","block_type":"box","text":"received in connection with loans of Fund securities are not treated as “acquired fund fees and","page_number":462,"box":{"x":117,"y":478,"width":706,"height":12}},{"id":"492b7003-90ca-41dd-82aa-d0e8d9787824","block_type":"box","text":"expenses,” which are fees and expenses charged by other investment companies and pooled","page_number":462,"box":{"x":116,"y":493,"width":701,"height":12}},{"id":"a6982ef7-9728-4573-8b67-6284c6b817b5","block_type":"box","text":"investment vehicles in which a Fund invests a portion of its assets.","page_number":462,"box":{"x":117,"y":508,"width":498,"height":12}},{"id":"4de29b2b-0086-4690-92c5-f01a1d00d4d6","block_type":"box","text":"To the extent shares of a Fund are held by another f","page_number":462,"box":{"x":116,"y":536,"width":380,"height":12}},{"id":"964accf2-5080-49c7-bdb4-0f036a3f1c44","block_type":"box","text":"und, the ability of the Fund it","page_number":462,"box":{"x":497,"y":536,"width":205,"height":12}},{"id":"51b935f9-989a-4510-8a0b-524491b12e44","block_type":"box","text":"self to purchase other","page_number":462,"box":{"x":702,"y":536,"width":163,"height":12}},{"id":"392a5bee-39ff-4629-84ea-f91e671d5ea4","block_type":"box","text":"funds may be limited. In addition, a fund-of-funds (","page_number":462,"box":{"x":116,"y":551,"width":365,"height":12}},{"id":"1dccd987-539a-4ca7-92a3-5781d5dbff90","block_type":"box","text":"e.g.","page_number":462,"box":{"x":482,"y":554,"width":25,"height":9}},{"id":"cf659771-bd24-45c7-a3cb-61613f1bad43","block_type":"box","text":", an investment company that seeks to meet its","page_number":462,"box":{"x":510,"y":551,"width":347,"height":12}},{"id":"03e44aae-4a22-49b5-8748-b29041106c34","block_type":"box","text":"investment objective by investing significantly in","page_number":462,"box":{"x":117,"y":566,"width":350,"height":12}},{"id":"58551f44-6994-491b-a677-ff28a346ec11","block_type":"box","text":"other investment companies)","page_number":462,"box":{"x":468,"y":566,"width":215,"height":12}},{"id":"14d74c7d-1140-49b1-9d3a-13f01ec3874d","block_type":"box","text":"may be limited in its ability","page_number":462,"box":{"x":684,"y":566,"width":195,"height":12}},{"id":"0966d52b-1dca-4f42-a1a6-7f3fd1896d59","block_type":"box","text":"to purchase underlying funds if such underlying f","page_number":462,"box":{"x":116,"y":582,"width":353,"height":12}},{"id":"ef36c8c7-0855-4c1e-8f66-3c8e85b9d804","block_type":"box","text":"unds themselves own shares of underlying funds.","page_number":462,"box":{"x":470,"y":582,"width":364,"height":12}},{"id":"678843d6-b31b-4faf-a3ac-9cfcf9e1c815","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate","page_number":462,"box":{"x":116,"y":609,"width":715,"height":12}},{"id":"5afb7cfb-a627-48e2-b5b3-ec4e10daceb0","block_type":"box","text":"indirect foreign investment in developing countries, and certain of such countries, such as Thailand,","page_number":462,"box":{"x":117,"y":624,"width":743,"height":12}},{"id":"40d4cbce-14c4-4ab4-bac5-7b7868a9280b","block_type":"box","text":"South Korea, Chile and Brazil, have specifically authorized such funds. There also are investment","page_number":462,"box":{"x":116,"y":640,"width":730,"height":12}},{"id":"856ffb6b-8131-46c6-ad07-60d3f18c8ce7","block_type":"box","text":"opportunities in certain of such countries in pooled vehicles that resemble open-end investment","page_number":462,"box":{"x":116,"y":655,"width":713,"height":12}},{"id":"a93e9962-ddb5-4b1a-a8a0-24403f08d0d9","block_type":"box","text":"companies. The restrictions on investments in securities of investment companies set forth above may","page_number":462,"box":{"x":116,"y":670,"width":760,"height":12}},{"id":"b24110ac-b67c-48bd-a27f-0bc4d64d94f1","block_type":"box","text":"limit opportunities for a Fund to invest indirectly in certain developing countries.","page_number":462,"box":{"x":117,"y":685,"width":585,"height":12}},{"id":"88067b19-dd7b-423b-a724-bdcb255b99af","block_type":"box","text":"Issuer Insolvency Risk.","page_number":462,"box":{"x":116,"y":713,"width":185,"height":12}},{"id":"be72205b-9a92-4b3e-9c58-2ceea41fb6a7","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled","page_number":462,"box":{"x":307,"y":713,"width":532,"height":12}},{"id":"4745eb3b-ecec-4af0-90fd-187f7c2ad235","block_type":"box","text":"issuers involves a high degree of credit and market risk, which may be heightened during an economic","page_number":462,"box":{"x":117,"y":728,"width":761,"height":12}},{"id":"7f92f5ea-3ce8-4821-b59a-54d92876863b","block_type":"box","text":"downturn or recession. Should an issuer of securities held by a Fund become involved in a bankruptcy","page_number":462,"box":{"x":116,"y":743,"width":760,"height":12}},{"id":"0c3ba040-c08b-46f1-8dea-a137dcf4f5d9","block_type":"box","text":"proceeding, reorganization or financial restructuring, a wide variety of considerations make an","page_number":462,"box":{"x":117,"y":759,"width":695,"height":12}},{"id":"8cf693e9-c9c0-49ac-8053-1fa6105141d3","block_type":"box","text":"evaluation of the outcome of the Fund’s exposure to the issuer uncertain.","page_number":462,"box":{"x":116,"y":774,"width":542,"height":12}},{"id":"fe18453d-a462-4eb9-87ff-4861debf31e5","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that","page_number":462,"box":{"x":117,"y":801,"width":764,"height":12}},{"id":"9b189634-5d54-4761-9b81-9ccfc8b4b1b2","block_type":"box","text":"a Fund will receive any interest payments on the securities of the issuer. A Fund will be subject to","page_number":462,"box":{"x":116,"y":817,"width":723,"height":12}},{"id":"b87a5add-941d-4043-ab18-7574a7efa464","block_type":"box","text":"significant uncertainty as to whether the reorganization or restructuring will be completed, and the Fund","page_number":462,"box":{"x":116,"y":832,"width":772,"height":12}},{"id":"8abad007-b10b-4fd9-817b-b74dee77c1d4","block_type":"box","text":"may bear certain extraordinary expenses to protect and recover its investment. A Fund will also be","page_number":462,"box":{"x":117,"y":847,"width":735,"height":12}},{"id":"35b5e10b-868c-4ca1-9a86-72161d9689c6","block_type":"box","text":"subject to significant uncertainty as to when and in what manner and for what value the obligations","page_number":462,"box":{"x":116,"y":862,"width":737,"height":12}},{"id":"88cc3997-a7a9-4638-98a8-247f9867a7ec","block_type":"box","text":"evidenced by the securities of the issuer held by the Fund will eventually be satisfied.","page_number":462,"box":{"x":116,"y":878,"width":637,"height":12}},{"id":"4f1895f6-cb27-4c4a-96ed-7b8ccb952fb6","block_type":"box","text":"II-64","page_number":462,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"6911623f-1c7e-4e82-96f1-3445cd2a5ac9","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":462,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"fc4ac72a-205b-442b-8acf-ab3ef4cf6999","block_type":"box","text":"Even if a plan of reorganization or restructuring is adopted with respect to the securities of the issuer","page_number":463,"box":{"x":117,"y":87,"width":741,"height":12}},{"id":"d143fbac-535e-46c7-881b-636e61b14474","block_type":"box","text":"held by the Fund, there can be no assurance that the securities or other assets received by a Fund in","page_number":463,"box":{"x":117,"y":102,"width":748,"height":12}},{"id":"928f2519-ad74-4635-b7d9-9cdd72253a0d","block_type":"box","text":"connection with such plan of reorganization or restructuring will not have a lower value or income","page_number":463,"box":{"x":116,"y":117,"width":717,"height":12}},{"id":"a213f436-ab9a-40d0-bcd1-831f46993832","block_type":"box","text":"potential than may have been anticipated or no value. A Fund may be unable to enforce its claims or","page_number":463,"box":{"x":117,"y":132,"width":742,"height":13}},{"id":"111d7a57-bf4f-42df-a32c-e05028b81b4d","block_type":"box","text":"rights in any collateral or may have its claims or security interest in any collateral challenged, disallowed","page_number":463,"box":{"x":117,"y":148,"width":767,"height":12}},{"id":"fcf88770-71d3-43ed-9aff-924264d86234","block_type":"box","text":"or subordinated to the claims or security interests of other creditors. In addition, amendments to the U.S.","page_number":463,"box":{"x":116,"y":163,"width":772,"height":12}},{"id":"45da47d0-f309-49f9-8261-9450ca59baa4","block_type":"box","text":"Bankruptcy Code or other relevant laws could alter the expected outcome or introduce greater","page_number":463,"box":{"x":117,"y":178,"width":695,"height":12}},{"id":"d58e5224-6d82-4449-98a3-ba6ae5b94916","block_type":"box","text":"uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":463,"box":{"x":117,"y":193,"width":716,"height":13}},{"id":"ed3ac105-29b5-4308-bdde-cea06c6088bc","block_type":"box","text":"proceeding, a reorganization or restructuring, the securities of the issuer held by a Fund could be","page_number":463,"box":{"x":117,"y":209,"width":716,"height":12}},{"id":"e01f1860-b0e5-435e-8e3e-2255fd899bac","block_type":"box","text":"re-characterized or a Fund may receive different securities or other assets, including equity securities.","page_number":463,"box":{"x":117,"y":224,"width":752,"height":12}},{"id":"346568e3-e08a-42fe-937e-8b8c1e5dae49","block_type":"box","text":"These types of equity securities include, but are not limited to: common stock; preferred stock (including","page_number":463,"box":{"x":116,"y":239,"width":768,"height":12}},{"id":"4958274f-74e8-47b5-be4e-a63e6febfe85","block_type":"box","text":"convertible preferred stock); bonds, notes and debentures convertible into common or preferred stock;","page_number":463,"box":{"x":116,"y":254,"width":756,"height":13}},{"id":"7e643362-32db-482b-827a-da82e28cf582","block_type":"box","text":"stock purchase warrants and rights; equity interests in trusts; and depositary receipts. Equity securities","page_number":463,"box":{"x":116,"y":270,"width":759,"height":12}},{"id":"e105a4b6-2528-48cc-9570-c1612803883c","block_type":"box","text":"are subject to changes in value, and their value may be more volatile than those of other asset classes.","page_number":463,"box":{"x":116,"y":285,"width":764,"height":12}},{"id":"ba4b5af0-f867-4603-a308-5a26540c4c0f","block_type":"box","text":"Holders of equity securities are subject to more risk than holders of debt securities because the status of","page_number":463,"box":{"x":117,"y":300,"width":771,"height":12}},{"id":"78c6516e-0d04-4dfa-a3fe-d01a36c9a515","block_type":"box","text":"equity holders is subordinate to debtholders in an issuer’s capital structure. The value of equity","page_number":463,"box":{"x":116,"y":315,"width":701,"height":13}},{"id":"a09a95c5-4ccb-4392-b297-f05c38210a5b","block_type":"box","text":"securities received by a Fund could decline if the financial condition of the issuer deteriorates or if","page_number":463,"box":{"x":116,"y":331,"width":721,"height":12}},{"id":"e940d573-7642-4eb6-a086-1225e4c77f7a","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":463,"box":{"x":116,"y":346,"width":764,"height":12}},{"id":"bb18940f-33f1-4ab1-9b02-372b7525cf45","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding,","page_number":463,"box":{"x":116,"y":378,"width":681,"height":12}},{"id":"643237ad-44f1-41cc-9c22-aa73b61eaf54","block_type":"box","text":"reorganization or financial restructuring, the Fund may also be subject to additional risks associated with","page_number":463,"box":{"x":117,"y":393,"width":770,"height":12}},{"id":"68c9375b-9953-4abd-a556-81f337347119","block_type":"box","text":"the assets received. One example of assets that a Fund could receive is an interest in one or more","page_number":463,"box":{"x":116,"y":408,"width":730,"height":12}},{"id":"12c76d9d-ce62-423d-925e-ca531ebd98c3","block_type":"box","text":"loans made to the issuer as part of a workout agreed to by a consortium of lienholders and creditors of","page_number":463,"box":{"x":117,"y":423,"width":756,"height":12}},{"id":"7579de6c-ea4c-40a2-937d-543f7ccfa7fd","block_type":"box","text":"the issuer. A Fund may receive such interests in loans to the extent permitted by the Investment","page_number":463,"box":{"x":116,"y":438,"width":710,"height":12}},{"id":"4024b80a-9303-4f4a-a252-d1c3d8d12b10","block_type":"box","text":"Company Act.","page_number":463,"box":{"x":117,"y":453,"width":108,"height":12}},{"id":"6c1f831b-a07a-4318-ab43-bd3a263836a9","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree","page_number":463,"box":{"x":116,"y":484,"width":756,"height":12}},{"id":"11f2e86c-f7d2-434c-b645-7e8c613165bc","block_type":"box","text":"of risk than investments in securities of issuers that have not undergone a reorganization or","page_number":463,"box":{"x":116,"y":499,"width":684,"height":12}},{"id":"2e7f5aaf-1778-492f-9162-c1afbaf93939","block_type":"box","text":"restructuring and may be subject to heavy selling or downward pricing pressure after completion of the","page_number":463,"box":{"x":117,"y":514,"width":765,"height":12}},{"id":"e39ffce7-6424-4e78-85f7-7c90c8dacc39","block_type":"box","text":"reorganization or restructuring. The post-reorganization/restructuring assets and securities may also be","page_number":463,"box":{"x":117,"y":529,"width":771,"height":12}},{"id":"c236d915-4328-4268-a381-1ff417601581","block_type":"box","text":"illiquid and difficult to sell or value. If a Fund participates in negotiations with respect to a plan of","page_number":463,"box":{"x":117,"y":544,"width":715,"height":12}},{"id":"fd82ca03-6f5f-4c0b-b5d9-6b84e5986d79","block_type":"box","text":"reorganization or restructuring with respect to securities of the issuer held by a Fund, the Fund also","page_number":463,"box":{"x":117,"y":559,"width":741,"height":12}},{"id":"04dd4271-a6de-47b2-aa31-7f5dc0e88318","block_type":"box","text":"may be restricted from disposing such securities for a period of time. If a Fund becomes involved in","page_number":463,"box":{"x":117,"y":574,"width":741,"height":12}},{"id":"d0e54fc2-ecd9-4bdd-ac29-7f9822c43a40","block_type":"box","text":"such proceedings, the Fund may have more active participation in the affairs of the issuer than that","page_number":463,"box":{"x":116,"y":589,"width":740,"height":12}},{"id":"138217eb-c11c-4900-aeb3-f11278abf163","block_type":"box","text":"assumed generally by an investor.","page_number":463,"box":{"x":116,"y":604,"width":260,"height":12}},{"id":"39de2905-72a4-4a0c-a16d-3c4d23b82d4e","block_type":"box","text":"Lease Obligations.","page_number":463,"box":{"x":116,"y":636,"width":145,"height":12}},{"id":"db991fae-61ed-499d-87d4-f027b30ff485","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase","page_number":463,"box":{"x":262,"y":636,"width":568,"height":12}},{"id":"ce6262ec-8768-4d03-8070-881099816ea7","block_type":"box","text":"contract, or a conditional sales contract (“lease","page_number":463,"box":{"x":116,"y":651,"width":344,"height":12}},{"id":"34261686-5c83-4a25-a883-a433c567ecf3","block_type":"box","text":"obligations”). The Manager will monitor the credit standing","page_number":463,"box":{"x":461,"y":651,"width":426,"height":12}},{"id":"4d180fb8-ce47-497f-90df-d9522ff0a5c4","block_type":"box","text":"of each borrower and each entity providing credit support","page_number":463,"box":{"x":116,"y":666,"width":415,"height":12}},{"id":"b40a2843-ea5f-49a6-ad34-a4e61e68aef5","block_type":"box","text":"and/or a put option relating to lease obligations.","page_number":463,"box":{"x":536,"y":666,"width":343,"height":12}},{"id":"53071325-80d3-4447-8919-a066f8dd3ec0","block_type":"box","text":"Life Settlement Investments.","page_number":463,"box":{"x":116,"y":698,"width":222,"height":9}},{"id":"dfd36978-80d4-4440-9fdc-367da04a6bf6","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties,","page_number":463,"box":{"x":344,"y":698,"width":502,"height":12}},{"id":"8a9fc445-096f-4676-bde5-b59faa27b0fb","block_type":"box","text":"such as the Fund, of existing life insurance contract","page_number":463,"box":{"x":116,"y":713,"width":374,"height":12}},{"id":"2337f215-7ff0-43b1-b11e-45a96f799bb5","block_type":"box","text":"s for more than their cash surrender value but less","page_number":463,"box":{"x":490,"y":713,"width":366,"height":9}},{"id":"af9e7167-e67d-4307-8002-51506beeb5ae","block_type":"box","text":"than the net benefits to be paid under the policies.","page_number":463,"box":{"x":116,"y":728,"width":362,"height":12}},{"id":"18bd5cba-2da0-4827-bde5-15fe089f64a7","block_type":"box","text":"When a Fund acquires such a contract, it pays the","page_number":463,"box":{"x":484,"y":728,"width":366,"height":12}},{"id":"7a62fd2f-e36a-4d83-bef5-d4cc13108ab1","block_type":"box","text":"policy premiums in return for the expected receipt","page_number":463,"box":{"x":117,"y":743,"width":359,"height":12}},{"id":"71c4307d-f3d7-4c45-9ac3-11b22f338dbe","block_type":"box","text":"of the net benefit as the","page_number":463,"box":{"x":481,"y":743,"width":171,"height":9}},{"id":"b3918b09-ca16-4f41-8374-b3346a8d13d6","block_type":"box","text":"beneficiary under the policy.","page_number":463,"box":{"x":658,"y":743,"width":202,"height":12}},{"id":"22350d37-7c87-49f2-8758-f1c539d2f8cd","block_type":"box","text":"Investments in these contracts involve certain risks,","page_number":463,"box":{"x":117,"y":758,"width":372,"height":11}},{"id":"18d25c47-b6a6-4360-9555-f2809be1dd62","block_type":"box","text":"including liquidity risk, credit risk of the insurance","page_number":463,"box":{"x":496,"y":758,"width":354,"height":12}},{"id":"343174f2-4c8d-46b2-b8ef-28ebc5ed104e","block_type":"box","text":"company, and inaccurate estimations of life expectan","page_number":463,"box":{"x":116,"y":773,"width":386,"height":12}},{"id":"f8f09f2c-eb3c-4873-8ca3-04470931aea6","block_type":"box","text":"cy of the insured individuals (viators). These policies","page_number":463,"box":{"x":503,"y":773,"width":379,"height":12}},{"id":"35b50d75-a178-4d62-9be7-c4c67f59fc31","block_type":"box","text":"may be considered illiquid because they are bought","page_number":463,"box":{"x":117,"y":788,"width":374,"height":12}},{"id":"ec1a41a5-c9de-42e8-990b-b3011cc97768","block_type":"box","text":"and sold in a secondary market through life","page_number":463,"box":{"x":496,"y":788,"width":314,"height":12}},{"id":"3c821f99-ce0f-4c96-8a84-2d2d634bc71a","block_type":"box","text":"settlement agents. Also, in the event of a bankruptcy","page_number":463,"box":{"x":116,"y":802,"width":382,"height":13}},{"id":"9bb60eb9-6069-4eac-9397-209e8f092d4c","block_type":"box","text":"of the insurance carrier for a policy, the Fund may","page_number":463,"box":{"x":503,"y":802,"width":362,"height":13}},{"id":"4b80073b-32dd-4ab9-9bf7-84a9c7c4aa30","block_type":"box","text":"receive reduced or no benefits under the contract. A Fund seeks to minimize credit risk by investing in","page_number":463,"box":{"x":117,"y":817,"width":738,"height":13}},{"id":"0481a234-d7ac-4536-9b0f-14b75c39f789","block_type":"box","text":"policies issued by a diverse range of highly-rated","page_number":463,"box":{"x":117,"y":832,"width":359,"height":13}},{"id":"ce49f22a-222e-484c-bbd6-b76557ac74fa","block_type":"box","text":"insurance carriers. Furthermore, a Fund may encounter","page_number":463,"box":{"x":477,"y":833,"width":408,"height":12}},{"id":"70a144d5-c2e7-4ab3-bb8a-35c10fea5222","block_type":"box","text":"losses on its investments if there is an inaccurate","page_number":463,"box":{"x":117,"y":847,"width":361,"height":10}},{"id":"a2fabdc8-69b4-4b41-a528-fa092338f51c","block_type":"box","text":"estimation of the life expectancies of viators. A Fund","page_number":463,"box":{"x":478,"y":847,"width":384,"height":12}},{"id":"05c9b0c1-b9c1-41fa-a0f4-1d5c7b32fbf9","block_type":"box","text":"intends to reduce this life expectancy risk by invest","page_number":463,"box":{"x":117,"y":862,"width":368,"height":13}},{"id":"4e03c01b-25a0-4f34-8523-0c78de8eeb18","block_type":"box","text":"ing only in contracts where the life expectancy was","page_number":463,"box":{"x":486,"y":862,"width":373,"height":13}},{"id":"8c79ef24-c471-4751-80a4-3fd89debf2ff","block_type":"box","text":"reviewed by an experienced actuary, as well as by di","page_number":463,"box":{"x":117,"y":878,"width":382,"height":12}},{"id":"1f40a24f-288a-46b9-b30d-e5a601b23ee3","block_type":"box","text":"versifying its investments across viators of varying","page_number":463,"box":{"x":500,"y":877,"width":369,"height":13}},{"id":"b458a6dd-3153-4dd9-9660-f5a5b5a8ae47","block_type":"box","text":"II-65","page_number":463,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"23e69643-853b-4a20-92cd-2ebc0ae5c21b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":463,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a8a23587-b448-461e-9e58-32f4da337c12","block_type":"box","text":"ages and medical profiles. In addition, it is unclear w","page_number":464,"box":{"x":116,"y":86,"width":368,"height":13}},{"id":"9008fe88-6a75-45fc-ae98-c3f9fa633981","block_type":"box","text":"whether the income from life settlements is qualifying","page_number":464,"box":{"x":484,"y":86,"width":390,"height":13}},{"id":"79818b79-a06f-4f67-a2d9-2fbefee05b80","block_type":"box","text":"income for purposes of the IRS 90% gross income","page_number":464,"box":{"x":117,"y":101,"width":371,"height":13}},{"id":"4bb8b648-2915-47b4-9209-106ba37fbbd0","block_type":"box","text":"test a Fund must satisfy each year to qualify as a","page_number":464,"box":{"x":488,"y":101,"width":361,"height":13}},{"id":"cea2eec0-dbf3-4b21-8bf4-ab48cd8bc4ca","block_type":"box","text":"regulated investment company. A Fund intends to m","page_number":464,"box":{"x":117,"y":117,"width":379,"height":12}},{"id":"b358daa0-4960-4a7d-a5a2-6eeefdf93820","block_type":"box","text":"onitor its investments to ensure that the Fund","page_number":464,"box":{"x":497,"y":117,"width":334,"height":9}},{"id":"4c3df927-5675-4408-a2a1-5dbd312c8532","block_type":"box","text":"remains qualified as a regulated investment company.","page_number":464,"box":{"x":117,"y":131,"width":397,"height":13}},{"id":"413b336d-93cb-4545-888c-fac88b89beb6","block_type":"box","text":"Liquidity Risk Management.","page_number":464,"box":{"x":116,"y":161,"width":221,"height":11}},{"id":"4fd6c2b4-0c3b-44f9-8fb5-c8811507dd72","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”)","page_number":464,"box":{"x":338,"y":160,"width":517,"height":12}},{"id":"b39e8145-d07b-4b8d-a429-cb9185498b65","block_type":"box","text":"requires open-end funds, such as the Funds, to adopt a liquidity risk management program and","page_number":464,"box":{"x":117,"y":175,"width":712,"height":12}},{"id":"a75527bc-c910-459c-abd7-463cd530b6a8","block_type":"box","text":"enhance disclosures regarding fund liquidity. As required by the Liquidity Rule, the Funds have","page_number":464,"box":{"x":116,"y":190,"width":709,"height":12}},{"id":"1f5c3821-243e-4c91-975d-723ff28350e4","block_type":"box","text":"implemented a liquidity risk management program (the “Liquidity Program”), and the Boards of","page_number":464,"box":{"x":117,"y":205,"width":704,"height":12}},{"id":"1454b095-9978-443c-aa6d-bfec8b1faf87","block_type":"box","text":"Directors of the Funds, including a majority of the independent Directors, have appointed the Manager","page_number":464,"box":{"x":117,"y":220,"width":762,"height":12}},{"id":"ac24a77d-bb16-464f-872d-e0ff9fbee977","block_type":"box","text":"as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity Program, the","page_number":464,"box":{"x":116,"y":235,"width":745,"height":12}},{"id":"364275d4-939a-4524-8b83-8949019b8441","block_type":"box","text":"Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":464,"box":{"x":117,"y":250,"width":746,"height":12}},{"id":"2571e0dd-11dc-40f9-a9b9-ceb50dccab07","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid","page_number":464,"box":{"x":117,"y":265,"width":750,"height":12}},{"id":"6024d44a-5e33-4e5c-96c8-17017849dd31","block_type":"box","text":"investment” or “illiquid investment.” The Liquidity Rule defines “liquidity risk” as the risk that a Fund","page_number":464,"box":{"x":117,"y":280,"width":736,"height":12}},{"id":"ca1b0138-0cea-4c5f-a93e-dd60263ab822","block_type":"box","text":"could not meet requests to redeem shares issued by the Fund without significant dilution of the","page_number":464,"box":{"x":116,"y":295,"width":709,"height":12}},{"id":"fbc8641a-60fb-4060-8d88-a7bde4b8a799","block_type":"box","text":"remaining investors’ interests in the Fund. The liquidity of a Fund’s portfolio investments is determined","page_number":464,"box":{"x":117,"y":310,"width":762,"height":12}},{"id":"b86842ad-d901-4d99-8b74-3cfbdc080b76","block_type":"box","text":"based on relevant market, trading and investment-specific considerations under the Liquidity Program.","page_number":464,"box":{"x":117,"y":325,"width":764,"height":12}},{"id":"22429b92-8a69-472b-b1d5-cf0c8462670c","block_type":"box","text":"To the extent that an investment is deemed to be an illiquid investment or a less liquid investment, a","page_number":464,"box":{"x":116,"y":340,"width":747,"height":12}},{"id":"6823d25d-8df7-4086-845a-70fca4ca4519","block_type":"box","text":"Fund can expect to be exposed to greater liquidity risk.","page_number":464,"box":{"x":117,"y":355,"width":411,"height":12}},{"id":"d6dcdfe3-580b-41a8-9a48-54abb8b35a10","block_type":"box","text":"Master Limited Partnerships.","page_number":464,"box":{"x":116,"y":385,"width":230,"height":12}},{"id":"4a7263ba-c8d8-4b3b-bce4-e51aca050a0e","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships","page_number":464,"box":{"x":347,"y":385,"width":538,"height":12}},{"id":"3de2d6f0-4afc-43c0-af69-e2855b0cc5da","block_type":"box","text":"(“MLPs”) which are limited partnerships or limited liability companies taxable as partnerships. MLPs","page_number":464,"box":{"x":117,"y":400,"width":741,"height":12}},{"id":"da203370-fe2f-4170-82e6-192149d5ca80","block_type":"box","text":"may derive income and gains from the exploration, development, mining or production, processing,","page_number":464,"box":{"x":117,"y":416,"width":739,"height":12}},{"id":"98d07f59-be71-4264-844e-3ffd97c411e8","block_type":"box","text":"refining, transportation (including pipelines transporting gas, oil, or products thereof), or the marketing","page_number":464,"box":{"x":117,"y":431,"width":758,"height":12}},{"id":"0194abcc-7667-4425-847f-ceec5e323ea0","block_type":"box","text":"of any mineral or natural resources. MLPs generally have two classes of owners, the general partner","page_number":464,"box":{"x":116,"y":447,"width":752,"height":12}},{"id":"1b43fa89-1463-429b-bd7b-4feebca8da2c","block_type":"box","text":"and limited partners. When investing in an MLP, a Fund intends to purchase publicly traded common","page_number":464,"box":{"x":116,"y":462,"width":753,"height":12}},{"id":"9788512c-9f7b-4d2b-9257-388ea99242cb","block_type":"box","text":"units issued to limited partners of the MLP. The general partner is typically owned by a major energy","page_number":464,"box":{"x":117,"y":478,"width":749,"height":12}},{"id":"688e45f5-d307-43b2-85fe-4cede05a8af7","block_type":"box","text":"company, an investment fund, the direct management of the MLP or is an entity owned by one or more","page_number":464,"box":{"x":116,"y":493,"width":769,"height":12}},{"id":"9dc09986-6857-43cc-a5bf-b0839db0c060","block_type":"box","text":"of such parties. The general partner may be structured as a private or publicly traded corporation or","page_number":464,"box":{"x":116,"y":509,"width":744,"height":12}},{"id":"38924fe9-8e58-4519-8578-c708096a84d4","block_type":"box","text":"other entity. The general partner typically controls the operations and management of the MLP through","page_number":464,"box":{"x":116,"y":524,"width":768,"height":12}},{"id":"8ed1de69-6a15-4552-8fbf-769536934e13","block_type":"box","text":"an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and","page_number":464,"box":{"x":116,"y":540,"width":689,"height":12}},{"id":"9e19be82-5997-42f2-8570-b57c366ccb02","block_type":"box","text":"subordinated units. Limited partners own the remainder of the partnership, through ownership of","page_number":464,"box":{"x":116,"y":555,"width":718,"height":12}},{"id":"a2455067-510a-4d5d-8045-554dae29c1ad","block_type":"box","text":"common units, and have a limited role in the partnership’s operations and management.","page_number":464,"box":{"x":116,"y":571,"width":658,"height":12}},{"id":"c15699a7-bfa7-4917-af36-5a261505d149","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to","page_number":464,"box":{"x":117,"y":600,"width":769,"height":12}},{"id":"158f1456-bf4a-430c-a66d-2a17b660e906","block_type":"box","text":"receive quarterly cash distributions up to an established minimum amount (“minimum quarterly","page_number":464,"box":{"x":117,"y":616,"width":706,"height":12}},{"id":"1e0cbeca-e44e-4c0f-b158-df551d0067aa","block_type":"box","text":"distributions” or “MQD”). Common and general partner interests also accrue arrearages in distributions","page_number":464,"box":{"x":116,"y":631,"width":767,"height":12}},{"id":"61dcdf1b-876d-4e2e-8311-db4ea0f10c17","block_type":"box","text":"to the extent the MQD is not paid. Once common and general partner interests have been paid,","page_number":464,"box":{"x":116,"y":647,"width":714,"height":12}},{"id":"db3fcae8-42d8-417c-b067-eb93bafd659a","block_type":"box","text":"subordinated units receive distributions of up to the MQD; however, subordinated units do not accrue","page_number":464,"box":{"x":116,"y":662,"width":750,"height":12}},{"id":"a664c8b6-af5e-473c-b659-e2c1a7083fa2","block_type":"box","text":"arrearages. Distributable cash in excess of the MQD paid to both common and subordinated units is","page_number":464,"box":{"x":116,"y":678,"width":743,"height":12}},{"id":"e772a53e-cdd8-4b49-966d-187b6de905d9","block_type":"box","text":"distributed to both common and subordinated units generally on a pro rata basis. The general partner","page_number":464,"box":{"x":116,"y":693,"width":752,"height":12}},{"id":"d8409139-7746-4112-b1b0-5e09b5463133","block_type":"box","text":"is also eligible to receive incentive distributions if the general partner operates the business in a","page_number":464,"box":{"x":117,"y":709,"width":707,"height":12}},{"id":"251595ee-4294-434c-ba8f-1f6e58615c98","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the","page_number":464,"box":{"x":117,"y":724,"width":746,"height":12}},{"id":"04d1707a-b36f-4a13-a375-650593d6962e","block_type":"box","text":"general partner increases cash distributions to the limited partners, the general partner receives an","page_number":464,"box":{"x":116,"y":740,"width":733,"height":12}},{"id":"dc8f62cc-8069-43cf-977a-8041b0ffa7bc","block_type":"box","text":"increasingly higher percentage of the incremental cash distributions. A common arrangement provides","page_number":464,"box":{"x":117,"y":755,"width":759,"height":12}},{"id":"07073c67-d367-4251-b1cb-a235107ed667","block_type":"box","text":"that the general partner can reach a tier where it receives 50% of every incremental dollar paid to","page_number":464,"box":{"x":116,"y":771,"width":722,"height":12}},{"id":"81da8488-cb8d-4770-a2be-a747adbfc418","block_type":"box","text":"common and subordinated unit holders. These incentive distributions encourage the general partner to","page_number":464,"box":{"x":116,"y":786,"width":762,"height":12}},{"id":"ea3aae8a-fdd3-4506-9c8c-789c02ffc46a","block_type":"box","text":"streamline costs, increase capital expenditures and acquire assets in order to increase the","page_number":464,"box":{"x":116,"y":802,"width":671,"height":12}},{"id":"a43af07f-4fd7-4a68-892e-c9921484f60d","block_type":"box","text":"partnership’s cash flow and raise the quarterly cash distribution in order to reach higher tiers. Such","page_number":464,"box":{"x":117,"y":817,"width":730,"height":12}},{"id":"c2eeeb21-67e6-404b-8755-0bafbee45d61","block_type":"box","text":"results benefit all security holders of the MLP.","page_number":464,"box":{"x":117,"y":833,"width":343,"height":12}},{"id":"fdeced1a-a82c-41b2-83a3-714f6ed4488a","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and","page_number":464,"box":{"x":117,"y":862,"width":748,"height":12}},{"id":"aef45840-0bf3-46a7-9076-aa3819565de7","block_type":"box","text":"traded on U.S. securities exchanges, with their value fluctuating predominantly based on prevailing","page_number":464,"box":{"x":116,"y":878,"width":739,"height":12}},{"id":"0b8d99df-50db-4c3b-aee8-55c04390e531","block_type":"box","text":"II-66","page_number":464,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"0dc41a55-58bf-41cc-8f45-bf951206fdb0","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":464,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"db331da1-cec9-4de2-bb2e-9da530a2110c","block_type":"box","text":"market conditions and the success of the MLP. Certain Funds intend to purchase common units in","page_number":465,"box":{"x":117,"y":87,"width":733,"height":12}},{"id":"3f2ab21f-4520-46b7-a4fa-9a0dc3f71a2f","block_type":"box","text":"market transactions. Unlike owners of common stock of a corporation, owners of common units have","page_number":465,"box":{"x":117,"y":102,"width":752,"height":12}},{"id":"5f3e45fe-c745-4ca7-a0d3-e78fad63a662","block_type":"box","text":"limited voting rights and have no ability to annually elect directors. In the event of liquidation, common","page_number":465,"box":{"x":117,"y":118,"width":758,"height":12}},{"id":"361fb44d-dede-4a3d-bf7f-a8b9871846a3","block_type":"box","text":"units have preference over subordinated units, but not over debt or preferred units, to the remaining","page_number":465,"box":{"x":117,"y":134,"width":744,"height":12}},{"id":"7a1f44f5-123c-48f5-97ed-c88308c6960f","block_type":"box","text":"assets of the MLP.","page_number":465,"box":{"x":116,"y":149,"width":144,"height":10}},{"id":"baf72752-ed97-4f6f-bca1-2a783059b375","block_type":"box","text":"Merger Transaction Risk.","page_number":465,"box":{"x":116,"y":179,"width":200,"height":12}},{"id":"b7ff322f-0c55-49d8-991e-f33891deb8b6","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger","page_number":465,"box":{"x":317,"y":179,"width":531,"height":12}},{"id":"1bc2eef1-3fe9-47bd-8e69-1276dc1e8de2","block_type":"box","text":"transaction prior to the consummation of such transaction. In that circumstance, a Fund would expect","page_number":465,"box":{"x":116,"y":194,"width":757,"height":12}},{"id":"fd1787f2-1932-45cc-a2e8-44285762e9a1","block_type":"box","text":"to receive an amount (whether in cash, stock of the acquiring company or a combination of both) in","page_number":465,"box":{"x":116,"y":210,"width":740,"height":12}},{"id":"039752bb-3d5a-420b-9c0e-e6f5c588f1ed","block_type":"box","text":"excess of the purchase price paid by the Fund for the target company’s stock. However, a Fund is","page_number":465,"box":{"x":116,"y":225,"width":733,"height":13}},{"id":"0b2fe97f-58e8-4369-a1dc-0c47c143fc4f","block_type":"box","text":"subject to the risk that the merger transaction may be canceled, delayed or restructured, in which case","page_number":465,"box":{"x":116,"y":241,"width":766,"height":12}},{"id":"a5907c2f-a8cc-41de-a9c6-6258c910e417","block_type":"box","text":"a Fund’s holding of the target company’s stock may not result in any profit for the Fund and may lose","page_number":465,"box":{"x":116,"y":256,"width":754,"height":13}},{"id":"3e704b41-1839-4655-ab67-e0d164b9fce8","block_type":"box","text":"significant value.","page_number":465,"box":{"x":116,"y":272,"width":129,"height":12}},{"id":"eaceaffd-d7e0-48fb-9f4d-7c9187b11705","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S.","page_number":465,"box":{"x":116,"y":302,"width":737,"height":12}},{"id":"d41ff263-dff1-4835-95a4-dc22e4740223","block_type":"box","text":"Banks.","page_number":465,"box":{"x":116,"y":318,"width":54,"height":9}},{"id":"f1bf3370-2c86-4003-a0c9-d94398d1aa1c","block_type":"box","text":"Certain Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’","page_number":465,"box":{"x":171,"y":317,"width":705,"height":12}},{"id":"2b375ef0-619f-42e0-b06f-20a44af9b43b","block_type":"box","text":"acceptances and time deposits, including instruments issued or supported by the credit of U.S. or","page_number":465,"box":{"x":116,"y":333,"width":728,"height":12}},{"id":"3a2fe8fe-b607-4b01-a710-cc6b08a584ad","block_type":"box","text":"foreign banks or savings institutions having total assets at the time of purchase in excess of $1 billion.","page_number":465,"box":{"x":116,"y":348,"width":761,"height":12}},{"id":"5689f7d6-f0c6-478e-9140-71aa1981f1fb","block_type":"box","text":"These obligations may be general obligations of the parent bank or may be limited to the issuing","page_number":465,"box":{"x":116,"y":364,"width":719,"height":12}},{"id":"33cef2be-1981-4dc2-ba9e-496fa73ee6a8","block_type":"box","text":"branch or subsidiary by the terms of a specific obligation or by government regulation. The assets of a","page_number":465,"box":{"x":117,"y":379,"width":761,"height":12}},{"id":"54363273-fba4-4840-80bb-164c4ba85a98","block_type":"box","text":"bank or savings institution will be deemed to include the assets of its domestic and foreign branches","page_number":465,"box":{"x":117,"y":395,"width":747,"height":12}},{"id":"d74f98fa-df2b-479d-883a-3ba9980db035","block_type":"box","text":"for purposes of a Fund’s investment policies. Investments in short-term bank obligations may include","page_number":465,"box":{"x":116,"y":410,"width":753,"height":12}},{"id":"69be3fd1-1891-498d-aeb8-d04177504fbb","block_type":"box","text":"obligations of foreign banks and domestic branches of foreign banks, and also foreign branches of","page_number":465,"box":{"x":116,"y":426,"width":734,"height":12}},{"id":"7c533366-4901-48ac-924d-d0c68e002e4b","block_type":"box","text":"domestic banks.","page_number":465,"box":{"x":116,"y":442,"width":126,"height":9}},{"id":"22d44854-b8ce-42ad-89e4-81a3ade29449","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of","page_number":465,"box":{"x":116,"y":471,"width":727,"height":12}},{"id":"6e2ab517-d041-4a1f-8125-3e374e4916ed","block_type":"box","text":"domestic or foreign corporations and banks, and may acquire commercial obligations issued by","page_number":465,"box":{"x":116,"y":487,"width":713,"height":12}},{"id":"010a3871-da0a-42f9-86df-e537704b1890","block_type":"box","text":"Canadian corporations and Canadian counterparts of U.S. corporations, as well as Europaper, which is","page_number":465,"box":{"x":117,"y":502,"width":769,"height":12}},{"id":"cc246d73-4740-428f-bf98-e75abaebc108","block_type":"box","text":"U.S. dollar-denominated commercial paper of a foreign issuer.","page_number":465,"box":{"x":117,"y":518,"width":466,"height":12}},{"id":"20522f23-c128-42b3-b496-b8d220843a91","block_type":"box","text":"Money Market Securities.","page_number":465,"box":{"x":116,"y":548,"width":201,"height":12}},{"id":"d9beeba4-0f50-4fc6-a8a1-f42e419fd06d","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S.","page_number":465,"box":{"x":318,"y":548,"width":564,"height":12}},{"id":"e2a86641-0c8a-4b10-a3e4-1aa4e67ad797","block_type":"box","text":"dollar-denominated instruments, such as government, bank, commercial and other obligations that are","page_number":465,"box":{"x":116,"y":563,"width":765,"height":12}},{"id":"98ee22e1-e496-402c-ac28-7be426658c91","block_type":"box","text":"available in the money markets. In particular, the Funds may invest in:","page_number":465,"box":{"x":116,"y":579,"width":526,"height":12}},{"id":"2329903a-e849-4bb2-91f0-65115c7e8496","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks","page_number":465,"box":{"x":150,"y":601,"width":735,"height":13}},{"id":"cdafc8c7-3343-4a4f-82e6-6720b321df1f","block_type":"box","text":"or savings institutions with total assets in excess of $1 billion (including obligations of foreign","page_number":465,"box":{"x":184,"y":616,"width":690,"height":13}},{"id":"ea6026ce-7580-460c-82ff-f1ae0fd98b58","block_type":"box","text":"branches of such banks);","page_number":465,"box":{"x":184,"y":632,"width":192,"height":13}},{"id":"9f83f73c-a8cd-4425-91ce-dee2f3610bc2","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign","page_number":465,"box":{"x":150,"y":655,"width":734,"height":12}},{"id":"4955e3de-26ca-49a0-85d5-44368d7b79d8","block_type":"box","text":"corporations and other issuers rated (at the time of purchase) A-2 or higher by S&P, Prime-2","page_number":465,"box":{"x":184,"y":671,"width":686,"height":12}},{"id":"4ac4f35b-4f68-4119-9da6-c5913ff771d4","block_type":"box","text":"or higher by Moody’s or F-2 or higher by Fitch, as well as high quality corporate bonds rated","page_number":465,"box":{"x":184,"y":686,"width":681,"height":12}},{"id":"34df4c57-40ab-4e44-9c38-b1f08bead821","block_type":"box","text":"(at the time of purchase) A or higher by those rating agencies;","page_number":465,"box":{"x":184,"y":702,"width":459,"height":12}},{"id":"0b85d868-96eb-4987-9c8d-79a1c4193513","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments","page_number":465,"box":{"x":150,"y":724,"width":720,"height":12}},{"id":"8350a4e7-e561-4d41-b5cb-aae9ab2f7822","block_type":"box","text":"described in (b) above as determined by the Fund’s Manager;","page_number":465,"box":{"x":184,"y":740,"width":457,"height":12}},{"id":"78d0ecf4-364a-4b2a-9bd3-386142b515b6","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment","page_number":465,"box":{"x":150,"y":762,"width":725,"height":13}},{"id":"4100cb93-9f96-46c2-8057-b2360c6391ba","block_type":"box","text":"purchase obligations and credit card receivables);","page_number":465,"box":{"x":184,"y":778,"width":368,"height":12}},{"id":"c79ed485-b315-4bff-a5a7-885d080081ba","block_type":"box","text":"(e) securities issued or guaranteed as to principal and interest by the U.S. Government or by its","page_number":465,"box":{"x":150,"y":801,"width":717,"height":12}},{"id":"f7038bb1-05ef-4955-b698-3a6bff1078f6","block_type":"box","text":"agencies or authorities and related custodial receipts;","page_number":465,"box":{"x":184,"y":816,"width":395,"height":12}},{"id":"ba097f0c-9651-4694-a20d-fc8d8dd7f0c7","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political","page_number":465,"box":{"x":150,"y":839,"width":719,"height":12}},{"id":"653205a1-cd86-4eca-b247-acaf9067e1e5","block_type":"box","text":"subdivisions, agencies or authorities;","page_number":465,"box":{"x":184,"y":854,"width":279,"height":12}},{"id":"48e10ddb-55cd-414c-b9c8-16cbb6f6bd0f","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":465,"box":{"x":150,"y":877,"width":561,"height":12}},{"id":"de13190b-fd8b-4b28-8dd4-05dc659f2822","block_type":"box","text":"II-67","page_number":465,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"5cb967a2-b3e6-492e-bdc4-bb55fa3c8473","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":465,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b708c2a8-37e4-4ea7-89a1-1b65e47455a2","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":466,"box":{"x":150,"y":87,"width":560,"height":12}},{"id":"2c6a78e7-d807-4a8a-abec-d60cf85449f7","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":466,"box":{"x":150,"y":109,"width":469,"height":12}},{"id":"69e2188b-26f5-4906-b2f4-418f8a85398d","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S.","page_number":466,"box":{"x":150,"y":131,"width":736,"height":12}},{"id":"65dc282f-3d91-4506-9890-936bb00534bc","block_type":"box","text":"Government or one of its agencies or authorities or which otherwise depend directly or","page_number":466,"box":{"x":184,"y":147,"width":646,"height":12}},{"id":"b8eadf09-54c3-437d-9304-7c6e9ff4bc2e","block_type":"box","text":"indirectly on the credit of the United States;","page_number":466,"box":{"x":184,"y":162,"width":325,"height":12}},{"id":"6e51f0da-26c6-4f55-91d9-584cb7d08e3f","block_type":"box","text":"(k) fixed and variable rate notes and similar debt instruments rated MIG-2, VMIG-2 or Prime-2 or","page_number":466,"box":{"x":150,"y":184,"width":730,"height":12}},{"id":"7e78c592-dcbd-44fd-93dc-536a4244400e","block_type":"box","text":"higher by Moody’s, SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":466,"box":{"x":184,"y":200,"width":563,"height":12}},{"id":"e6a1ea4a-61f6-4c79-be22-314a3cf50ad3","block_type":"box","text":"(l) tax-exempt commercial paper and similar debt instruments rated Prime-2 or higher by","page_number":466,"box":{"x":150,"y":222,"width":675,"height":12}},{"id":"39c8ebde-7d61-40f5-b247-4a53a0f1ee49","block_type":"box","text":"Moody’s, A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":466,"box":{"x":184,"y":237,"width":428,"height":12}},{"id":"0deda7b3-8be9-4efe-a497-0f7ac076a2bc","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":466,"box":{"x":150,"y":259,"width":488,"height":13}},{"id":"2a0983fd-e816-485c-b904-ef84f1165ac5","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments","page_number":466,"box":{"x":150,"y":282,"width":713,"height":12}},{"id":"ef5442fc-42a1-49bb-b38d-aff4591ba452","block_type":"box","text":"described above, as determined by the Fund’s Manager under guidelines established by the","page_number":466,"box":{"x":184,"y":297,"width":688,"height":12}},{"id":"548726e8-a050-44da-b887-0350bd381930","block_type":"box","text":"Board; and","page_number":466,"box":{"x":184,"y":313,"width":86,"height":11}},{"id":"201dc6b0-70ee-4148-9437-340f54ff2f9d","block_type":"box","text":"(o) municipal bonds and notes which are guaranteed as to principal and interest by the U.S.","page_number":466,"box":{"x":150,"y":335,"width":693,"height":12}},{"id":"0828c8fd-5832-4671-a9df-5ac1bb9103f4","block_type":"box","text":"Government or an agency or instrumentality thereof or which otherwise depend directly or","page_number":466,"box":{"x":184,"y":350,"width":671,"height":12}},{"id":"03da4155-c6c4-4436-bb3c-b0d199c921d9","block_type":"box","text":"indirectly on the credit of the United States.","page_number":466,"box":{"x":184,"y":366,"width":325,"height":12}},{"id":"cbb72435-43eb-4931-9c18-15072392a0f2","block_type":"box","text":"Mortgage-Related Securities.","page_number":466,"box":{"x":116,"y":394,"width":236,"height":13}},{"id":"7b571b12-515f-4340-b318-7bd4f5482d6a","block_type":"box","text":"Mortgage-Backed Securities.","page_number":466,"box":{"x":116,"y":417,"width":210,"height":12}},{"id":"a60a819c-cd37-45dd-a355-7be7c189f8d6","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in","page_number":466,"box":{"x":327,"y":417,"width":532,"height":12}},{"id":"1e3a24af-3477-4a35-bee3-419ffa38d458","block_type":"box","text":"which payments of both principal and interest on the","page_number":466,"box":{"x":116,"y":432,"width":384,"height":12}},{"id":"4c454d9b-75a3-45bf-a194-4b8e964580fe","block_type":"box","text":"securities are generally made monthly, in effect","page_number":466,"box":{"x":500,"y":432,"width":348,"height":12}},{"id":"df97ab85-23d9-43a4-90eb-b7aaa8677667","block_type":"box","text":"“passing through” monthly payments made by borro","page_number":466,"box":{"x":116,"y":448,"width":377,"height":12}},{"id":"7ca79175-4180-4817-9b20-1bc0bd0c4d23","block_type":"box","text":"wers on the residential or commercial mortgage","page_number":466,"box":{"x":493,"y":448,"width":352,"height":12}},{"id":"c7d1b92a-28ec-42c0-b6ca-fd591e349a9d","block_type":"box","text":"loans that underlie the securities (net of any fees","page_number":466,"box":{"x":117,"y":463,"width":357,"height":12}},{"id":"ec3973b8-6808-44e8-8bdd-29df85dbd74d","block_type":"box","text":"paid to the issuer or guarantor of the securities).","page_number":466,"box":{"x":475,"y":463,"width":353,"height":12}},{"id":"5a824108-f094-4f08-b084-dfb73d20b33f","block_type":"box","text":"Mortgage-backed securities differ from other forms of","page_number":466,"box":{"x":117,"y":479,"width":391,"height":12}},{"id":"6cf2ade2-b3b6-4c4d-8010-306074438615","block_type":"box","text":"debt securities, which normally provide for periodic","page_number":466,"box":{"x":508,"y":479,"width":372,"height":12}},{"id":"79d38597-a94f-44bb-8f07-9a394d239ff4","block_type":"box","text":"payment of interest in fixed amounts with principal","page_number":466,"box":{"x":117,"y":494,"width":362,"height":12}},{"id":"729efe8f-ac68-442d-ab1f-d209684ad961","block_type":"box","text":"payments at maturity or specified call dates.","page_number":466,"box":{"x":479,"y":494,"width":330,"height":12}},{"id":"0d673d2c-9004-4201-9e1e-6bdb4512f784","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate","page_number":466,"box":{"x":117,"y":523,"width":736,"height":12}},{"id":"8d3dfcd4-ae7e-4b58-9656-a396f0f5267e","block_type":"box","text":"securities; that is, they may lose value if the value of the underlying real estate to which a pool of","page_number":466,"box":{"x":116,"y":538,"width":722,"height":12}},{"id":"5c687eee-b9ea-40bc-beee-eb8f3bae319e","block_type":"box","text":"mortgages relates declines. In addition, investments in mortgage-backed securities involve certain","page_number":466,"box":{"x":117,"y":554,"width":732,"height":12}},{"id":"07efb301-d9c4-4213-bad9-be2a902cebec","block_type":"box","text":"specific risks. These risks include the failure of a party to meet its commitments under the related","page_number":466,"box":{"x":116,"y":569,"width":726,"height":12}},{"id":"817434f7-7757-4200-8fad-7017d31a062c","block_type":"box","text":"operative documents, adverse interest rate changes and the effects of prepayments on mortgage cash","page_number":466,"box":{"x":116,"y":585,"width":767,"height":12}},{"id":"bf1bf722-0522-4ba0-80b1-6cc00153b568","block_type":"box","text":"flows. Mortgage-backed securities are “pass-through” securities, meaning that principal and interest","page_number":466,"box":{"x":116,"y":600,"width":744,"height":12}},{"id":"2e6b13c6-c6f7-4dc5-9166-e6b0a61a8f35","block_type":"box","text":"payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":466,"box":{"x":117,"y":616,"width":693,"height":12}},{"id":"c4da15b3-b418-4b73-8c5c-1880b63db67d","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly","page_number":466,"box":{"x":116,"y":631,"width":725,"height":12}},{"id":"9b408a23-8c33-4508-b270-c3d3054da379","block_type":"box","text":"sensitive to changes in prevailing interest rates, and, like other fixed income investments, the ability of","page_number":466,"box":{"x":116,"y":647,"width":761,"height":12}},{"id":"1e0f75c4-9997-45ea-846d-3262cf6ca459","block_type":"box","text":"a Fund to utilize these instruments successfully may depend in part upon the ability of the Manager to","page_number":466,"box":{"x":116,"y":662,"width":754,"height":12}},{"id":"9a05e711-0f75-4613-8760-05717ab631e9","block_type":"box","text":"forecast interest rates and other economic factors correctly. The value of mortgage-backed securities,","page_number":466,"box":{"x":116,"y":678,"width":755,"height":12}},{"id":"a164cfb3-cf0f-44a9-8d14-4912f14bf3f6","block_type":"box","text":"like that of traditional fixed-income securities, typically increases when interest rates fall and decreases","page_number":466,"box":{"x":117,"y":693,"width":762,"height":12}},{"id":"d9fdf7b7-2a76-4212-aa80-a22d906ad4ff","block_type":"box","text":"when interest rates rise. However, mortgage-backed securities differ from traditional fixed-income","page_number":466,"box":{"x":116,"y":709,"width":724,"height":12}},{"id":"462ce161-d3ec-4a3b-b326-6155bce46dd4","block_type":"box","text":"securities because of their potential for prepayment without penalty. The price paid by a Fund for its","page_number":466,"box":{"x":116,"y":724,"width":739,"height":12}},{"id":"0b4d11ad-9396-4f45-884f-3dc0261f0c73","block_type":"box","text":"mortgage-backed securities, the yield the Fund expects to receive from such securities and the","page_number":466,"box":{"x":117,"y":740,"width":704,"height":12}},{"id":"8e7d72d3-1f61-45af-a659-1e36fb3cc45f","block_type":"box","text":"weighted average life of the securities are based on a number of factors, including the anticipated rate","page_number":466,"box":{"x":116,"y":755,"width":757,"height":12}},{"id":"b70851fa-c022-43c4-9c2b-3587c4015cc8","block_type":"box","text":"of prepayment of the underlying mortgages. In a period of declining interest rates, borrowers may","page_number":466,"box":{"x":116,"y":771,"width":722,"height":12}},{"id":"b28a91e2-5748-407f-b606-b2a520c667d4","block_type":"box","text":"prepay the underlying mortgages more quickly than anticipated, thereby reducing the yield to maturity","page_number":466,"box":{"x":117,"y":787,"width":753,"height":11}},{"id":"8a612657-767a-49f5-9d10-ff8410f6a7b3","block_type":"box","text":"and the average life of the mortgage-backed securities. Moreover, when a Fund reinvests the proceeds","page_number":466,"box":{"x":116,"y":802,"width":766,"height":12}},{"id":"ce8c1a62-2339-4290-af29-e956469bda9e","block_type":"box","text":"of a prepayment in these circumstances, it will likely receive a rate of interest that is lower than the rate","page_number":466,"box":{"x":116,"y":817,"width":764,"height":12}},{"id":"7f61d7d3-a8ba-42de-ba7e-8c4f0fb6afff","block_type":"box","text":"on the security that was prepaid.","page_number":466,"box":{"x":116,"y":833,"width":247,"height":12}},{"id":"3d9741be-b9a8-4a52-b1e1-0a3a9bae3e55","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures","page_number":466,"box":{"x":116,"y":862,"width":766,"height":12}},{"id":"8c611835-9f05-4242-9e0a-fb2574046206","block_type":"box","text":"and principal prepayments may result in a loss to the extent of the premium paid. If a Fund buys such","page_number":466,"box":{"x":116,"y":877,"width":758,"height":12}},{"id":"beef6f61-a1d6-41cc-9d12-d09d9fe9ae45","block_type":"box","text":"II-68","page_number":466,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"719cbfd8-d6b8-49f2-ae3f-9ff78034adb9","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":466,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"29007b20-ede8-4d4f-b038-44c048083541","block_type":"box","text":"securities at a discount, both scheduled payments of principal and unscheduled prepayments will","page_number":467,"box":{"x":116,"y":87,"width":726,"height":12}},{"id":"0cc42930-84a4-4f16-961f-43365be214a2","block_type":"box","text":"increase current and total returns and will accelerate the recognition of income, which, when distributed","page_number":467,"box":{"x":117,"y":102,"width":771,"height":13}},{"id":"109ae648-66de-4634-807a-ea853d3aa5dd","block_type":"box","text":"to shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of","page_number":467,"box":{"x":116,"y":118,"width":762,"height":12}},{"id":"330281e4-67ac-4b8c-bf7d-5b19f5d669f4","block_type":"box","text":"the underlying mortgages may occur at a slower than expected rate, creating maturity extension risk.","page_number":467,"box":{"x":116,"y":134,"width":753,"height":12}},{"id":"cce425d7-9497-45c3-88a0-a5edc4d97f07","block_type":"box","text":"This particular risk may effectively change a security that was considered short- or intermediate-term at","page_number":467,"box":{"x":116,"y":149,"width":771,"height":12}},{"id":"bcb8c6ae-0eea-43bb-9fff-68c31079786f","block_type":"box","text":"the time of purchase into a long-term security. Since the value of long-term securities generally","page_number":467,"box":{"x":116,"y":165,"width":709,"height":12}},{"id":"d238c906-b302-47ae-99f3-30fdca74bbe0","block_type":"box","text":"fluctuates more widely in response to changes in interest rates than that of shorter-term securities,","page_number":467,"box":{"x":116,"y":180,"width":736,"height":12}},{"id":"173354bf-2751-479b-9f2c-205b425fd46c","block_type":"box","text":"maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":467,"box":{"x":117,"y":196,"width":769,"height":12}},{"id":"72449006-4c99-47b8-9f29-2309ccc41e9f","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities","page_number":467,"box":{"x":117,"y":211,"width":740,"height":12}},{"id":"2bb7f9a0-c60a-454f-b653-17875ee0ab1b","block_type":"box","text":"notwithstanding any direct or indirect governmental or agency guarantee.","page_number":467,"box":{"x":117,"y":227,"width":547,"height":12}},{"id":"2b29dcb5-5ee4-4d78-9fc8-f754648bb407","block_type":"box","text":"There are currently three types of mortgage pass-through securities: (1) those issued by the U.S.","page_number":467,"box":{"x":116,"y":254,"width":725,"height":12}},{"id":"c9428ddb-cf5f-4b64-9ac2-24fd0096b15e","block_type":"box","text":"Government or one of its agencies or instrumentalities, such as the Government National Mortgage","page_number":467,"box":{"x":117,"y":269,"width":742,"height":12}},{"id":"248098c1-0228-4e66-a498-8c9c9a7bf1dc","block_type":"box","text":"Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”) and the Federal","page_number":467,"box":{"x":116,"y":285,"width":770,"height":12}},{"id":"300657a2-af84-494a-91d4-28036347ef25","block_type":"box","text":"Home Loan Mortgage Corporation (“Freddie Mac”); (2) those issued by private issuers that represent","page_number":467,"box":{"x":117,"y":300,"width":753,"height":12}},{"id":"0ed5efb3-4e59-4d52-8862-6d9ec4f40c41","block_type":"box","text":"an interest in or are collateralized by pass-through securities issued or guaranteed by the U.S.","page_number":467,"box":{"x":116,"y":316,"width":704,"height":12}},{"id":"a723dc04-ef77-4002-a8cf-fe06ca1aad04","block_type":"box","text":"Government or one of its agencies or instrumentalities; and (3) those issued by private issuers that","page_number":467,"box":{"x":117,"y":331,"width":737,"height":12}},{"id":"8cdbd360-005d-4fab-b8c5-1410c2ed0501","block_type":"box","text":"represent an interest in or are collateralized by whole mortgage loans or pass-through securities","page_number":467,"box":{"x":117,"y":347,"width":717,"height":12}},{"id":"9d98507b-4263-4246-b6a2-5c3c3bb1506d","block_type":"box","text":"without a government guarantee but that usually have some form of private credit enhancement.","page_number":467,"box":{"x":116,"y":362,"width":720,"height":12}},{"id":"18559f0f-fba7-4fd5-bffc-0d9da1f7ae8d","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and","page_number":467,"box":{"x":117,"y":389,"width":736,"height":12}},{"id":"2f90c518-3157-45f8-94fa-a25962ce57af","block_type":"box","text":"Urban Development. Ginnie Mae is authorized to guarantee, with the full faith and credit of the U.S.","page_number":467,"box":{"x":117,"y":405,"width":741,"height":12}},{"id":"cec02218-a765-431e-8c49-bf58ea19a7a9","block_type":"box","text":"Government, the timely payment of principal and interest on securities issued by the institutions","page_number":467,"box":{"x":117,"y":420,"width":713,"height":12}},{"id":"898cc9d1-3981-472b-ba1d-8c789c14af44","block_type":"box","text":"approved by Ginnie Mae (such as savings and loan institutions, commercial banks and mortgage","page_number":467,"box":{"x":116,"y":436,"width":725,"height":12}},{"id":"b1421d54-b9da-4fd2-81f7-9c4e2c8a1385","block_type":"box","text":"banks), and backed by pools of Federal Housing Administration (“FHA”)-insured or Veterans’","page_number":467,"box":{"x":117,"y":451,"width":693,"height":12}},{"id":"5fc8cf9c-1a1c-44b6-b217-1705d4bff792","block_type":"box","text":"Administration (“VA”)-guaranteed mortgages. Pass-through certificates guaranteed by Ginnie Mae","page_number":467,"box":{"x":116,"y":467,"width":733,"height":12}},{"id":"70656d0c-e819-43ce-b06d-41787ea5f6d9","block_type":"box","text":"(such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely payment of","page_number":467,"box":{"x":117,"y":482,"width":711,"height":12}},{"id":"e42920c1-a3b6-4198-8e6b-e05c6a52ed4a","block_type":"box","text":"principal and interest by Ginnie Mae, whose guarantee is backed by the full faith and credit of the","page_number":467,"box":{"x":117,"y":498,"width":725,"height":12}},{"id":"6335c031-a6fc-421b-843b-6f5f6c483857","block_type":"box","text":"United States. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow","page_number":467,"box":{"x":117,"y":513,"width":733,"height":12}},{"id":"2b2aecb0-fd78-4a7c-8b0b-2c2eb81c7b46","block_type":"box","text":"funds from the U.S. Treasury Department to make payments under its guarantee. Mortgage-related","page_number":467,"box":{"x":116,"y":529,"width":743,"height":12}},{"id":"7ea07662-6e25-40c6-a6b4-edc9eed2b492","block_type":"box","text":"securities issued by Fannie Mae include Fannie Mae guaranteed Mortgage Pass-Through Certificates","page_number":467,"box":{"x":116,"y":544,"width":761,"height":12}},{"id":"2725c170-2ad2-4b10-afe1-da9bef43378b","block_type":"box","text":"(also known as “Fannie Maes”), which are guaranteed as to timely payment of principal and interest by","page_number":467,"box":{"x":117,"y":560,"width":766,"height":12}},{"id":"6d3c386a-86da-4840-83ef-efadf0780cf4","block_type":"box","text":"Fannie Mae. They are not backed by or entitled to the full faith and credit of the United States, but are","page_number":467,"box":{"x":117,"y":575,"width":759,"height":12}},{"id":"94890c36-b84a-4441-a85c-f2ee12ea94a9","block_type":"box","text":"supported by the right of Fannie Mae to borrow from the U.S. Treasury Department. Fannie Mae was","page_number":467,"box":{"x":116,"y":591,"width":755,"height":12}},{"id":"5dc8cb34-084d-492a-82b3-045b6dbd5e33","block_type":"box","text":"established as a federal agency in 1938 and in 1968 was chartered by Congress as a private","page_number":467,"box":{"x":116,"y":606,"width":695,"height":12}},{"id":"fdbbb2e8-3129-4803-993e-12bbd717de95","block_type":"box","text":"shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":467,"box":{"x":116,"y":622,"width":765,"height":12}},{"id":"04f9554e-8e92-4753-ba0d-6051fb23e62b","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a","page_number":467,"box":{"x":117,"y":637,"width":702,"height":12}},{"id":"e9039ae0-4861-479c-aee7-cbc8277632ab","block_type":"box","text":"stockholder-owned corporation chartered by Congress in 1970. Freddie Macs are not guaranteed by","page_number":467,"box":{"x":116,"y":653,"width":750,"height":12}},{"id":"88e3e1af-b3bc-4fd8-b9f1-4645cb49abed","block_type":"box","text":"the United States or by any Federal Home Loan Banks and do not constitute a debt or obligation of the","page_number":467,"box":{"x":116,"y":668,"width":763,"height":12}},{"id":"09efa143-3632-4e58-a313-e9d3307c462d","block_type":"box","text":"United States or of any Federal Home Loan Bank. Freddie Macs entitle the holder to timely payment of","page_number":467,"box":{"x":117,"y":684,"width":763,"height":12}},{"id":"17989b01-7f35-4b43-ad83-e247502d0ab1","block_type":"box","text":"interest, which is guaranteed by Freddie Mac. Freddie Mac guarantees either ultimate collection or","page_number":467,"box":{"x":117,"y":700,"width":731,"height":12}},{"id":"35b4d851-3e04-4079-b607-5544630e8a15","block_type":"box","text":"timely payment of all principal payments on the underlying mortgage loans. While Freddie Mac","page_number":467,"box":{"x":116,"y":715,"width":702,"height":12}},{"id":"21f2ee62-06ca-4de7-8f96-0b0c14132c0e","block_type":"box","text":"generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due on","page_number":467,"box":{"x":116,"y":730,"width":747,"height":13}},{"id":"6897b8ac-216a-4343-b2c9-fe1022bf9882","block_type":"box","text":"account of its guarantee of ultimate payment of principal at any time after default on an underlying","page_number":467,"box":{"x":116,"y":746,"width":726,"height":12}},{"id":"a5dff1a6-7af3-461a-971e-18da2b246ffc","block_type":"box","text":"mortgage, but in no event later than one year after it becomes payable.","page_number":467,"box":{"x":117,"y":761,"width":526,"height":13}},{"id":"c7ef0324-d5c6-440d-88e4-1eab5c903709","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and","page_number":467,"box":{"x":117,"y":789,"width":724,"height":12}},{"id":"8d72c343-3fda-4aef-9331-d66899e0f28d","block_type":"box","text":"Freddie Mac mortgage pass-through securities and are issued by originators of and investors in","page_number":467,"box":{"x":117,"y":804,"width":708,"height":12}},{"id":"7cb5a3a1-86cc-4ef7-bd21-c37ad8505aea","block_type":"box","text":"mortgage loans, including depository institutions, mortgage banks, investment banks and special","page_number":467,"box":{"x":117,"y":820,"width":716,"height":12}},{"id":"1c08eabd-3cd5-4bba-b69e-90745c5861ee","block_type":"box","text":"purpose subsidiaries of the foregoing.","page_number":467,"box":{"x":117,"y":835,"width":284,"height":12}},{"id":"680087a9-be72-47ba-86f1-a44b7ecacef1","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than","page_number":467,"box":{"x":117,"y":862,"width":747,"height":12}},{"id":"d52e50ba-00e2-4f4d-b004-9c9df032c2a5","block_type":"box","text":"government and government-related pools because there are no direct or indirect government or","page_number":467,"box":{"x":116,"y":878,"width":723,"height":12}},{"id":"f3fdc4b9-64d1-44a5-8723-c88e30b950d3","block_type":"box","text":"II-69","page_number":467,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"6f181e7c-0f14-455d-9849-7323a2e1b2ec","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":467,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"05599936-f8ff-4e30-950e-b843f7da8091","block_type":"box","text":"agency guarantees of payments in the private pools. However, timely payment of interest and principal","page_number":468,"box":{"x":116,"y":87,"width":767,"height":12}},{"id":"19825c49-eba9-402b-936f-4ddfc12254f4","block_type":"box","text":"of these pools may be supported by various forms of insurance or guarantees, including individual","page_number":468,"box":{"x":116,"y":102,"width":732,"height":13}},{"id":"d740eccf-f0d4-46e4-b145-dd0bf71bb01e","block_type":"box","text":"loan, title, pool and hazard insurance and letters of credit. The insurance and guarantees are issued by","page_number":468,"box":{"x":117,"y":118,"width":769,"height":12}},{"id":"d51d7334-b356-498d-8b68-a7aa4f1699f1","block_type":"box","text":"governmental entities, private insurers and the mortgage poolers. The insurance and guarantees and","page_number":468,"box":{"x":116,"y":134,"width":756,"height":12}},{"id":"7b9ac307-68cc-4b81-b2af-c52ad0332074","block_type":"box","text":"the creditworthiness of the issuers thereof will be considered in determining whether a mortgage","page_number":468,"box":{"x":116,"y":149,"width":720,"height":12}},{"id":"1bd0af62-69aa-4e0f-bc00-2e6bb22c8f82","block_type":"box","text":"related security meets a Fund’s investment quality standards. There can be no assurance that the","page_number":468,"box":{"x":117,"y":165,"width":731,"height":12}},{"id":"1d4618ee-bc84-4f53-addf-e001bdf2ddb6","block_type":"box","text":"private insurers or guarantors can meet their obligations under the insurance policies or guarantee","page_number":468,"box":{"x":117,"y":180,"width":734,"height":12}},{"id":"26dbeb6f-ed1e-4205-af59-191ed1272508","block_type":"box","text":"arrangements. Private mortgage pass-through securities may be bought without insurance or","page_number":468,"box":{"x":116,"y":196,"width":696,"height":12}},{"id":"7272d19d-b295-46df-9079-2b391803c841","block_type":"box","text":"guarantees if, through an examination of the loan experience and practices of the originator/servicers","page_number":468,"box":{"x":116,"y":211,"width":756,"height":12}},{"id":"064cb227-2bcb-4650-8dea-2ca4f3c62559","block_type":"box","text":"and poolers, the Manager determines that the securities meet a Fund’s quality standards. Any","page_number":468,"box":{"x":116,"y":227,"width":703,"height":12}},{"id":"2688d6ce-dcc3-4221-87a8-92b2fc90eebe","block_type":"box","text":"mortgage-related securities that are issued by private issuers have some exposure to subprime loans","page_number":468,"box":{"x":117,"y":242,"width":757,"height":12}},{"id":"b4a771ec-b1c8-4749-9505-ec9387e1c6bb","block_type":"box","text":"as well as to the mortgage and credit markets generally.","page_number":468,"box":{"x":116,"y":258,"width":422,"height":12}},{"id":"5ec33551-5244-46c7-9a90-815ff722477c","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the","page_number":468,"box":{"x":117,"y":289,"width":707,"height":12}},{"id":"6115d56f-082e-48a3-b064-e2e593d33718","block_type":"box","text":"underwriting requirements for the underlying mortgages that are applicable to those mortgage-related","page_number":468,"box":{"x":117,"y":304,"width":757,"height":12}},{"id":"fdbb8693-ed06-4d1f-b163-6c25469a62c1","block_type":"box","text":"securities that have a government or government-sponsored entity guarantee. As a result, the","page_number":468,"box":{"x":116,"y":320,"width":702,"height":12}},{"id":"e155134f-8037-4853-97bc-60e1451811ba","block_type":"box","text":"mortgage loans underlying private mortgage-related securities may, and frequently do, have less","page_number":468,"box":{"x":117,"y":335,"width":722,"height":12}},{"id":"222d9278-34a3-4cae-9e30-1470415b3cf9","block_type":"box","text":"favorable collateral, credit risk or other underwriting characteristics than government or government","page_number":468,"box":{"x":116,"y":351,"width":743,"height":12}},{"id":"ef9d1ecf-b816-46e9-a83f-09e03f160db5","block_type":"box","text":"sponsored mortgage-related securities and have wider variances in a number of terms including","page_number":468,"box":{"x":116,"y":366,"width":717,"height":12}},{"id":"628f00c0-e34e-48d4-8291-dd195ba029ed","block_type":"box","text":"interest rate, term, size, purpose and borrower characteristics. Privately issued pools more frequently","page_number":468,"box":{"x":117,"y":382,"width":755,"height":12}},{"id":"7de61d21-515d-4a10-b3a5-bff867774b5b","block_type":"box","text":"include second mortgages, high loan-to-value mortgages and manufactured housing loans. The","page_number":468,"box":{"x":117,"y":397,"width":714,"height":12}},{"id":"e9a9c94b-862c-464a-91d9-0474fa8828fa","block_type":"box","text":"coupon rates and maturities of the underlying mortgage loans in a private-label mortgage-related","page_number":468,"box":{"x":116,"y":413,"width":723,"height":12}},{"id":"2105092f-bb41-4b61-b7a0-07dd935789ea","block_type":"box","text":"securities pool may vary to a greater extent than those included in a government guaranteed pool, and","page_number":468,"box":{"x":116,"y":428,"width":766,"height":12}},{"id":"f10bcc56-1f2c-40b7-91ef-91e46840340a","block_type":"box","text":"the pool may include subprime mortgage loans. Subprime loans refer to loans made to borrowers with","page_number":468,"box":{"x":116,"y":444,"width":762,"height":12}},{"id":"7df5acd2-6de7-44e0-80e1-be877ce80d0b","block_type":"box","text":"weakened credit histories or with a lower capacity to make timely payments on their loans. For these","page_number":468,"box":{"x":116,"y":459,"width":751,"height":12}},{"id":"2c922562-18b4-4355-b1df-c81064ac35a7","block_type":"box","text":"reasons, the loans underlying these securities have had in many cases higher default rates than those","page_number":468,"box":{"x":117,"y":475,"width":763,"height":12}},{"id":"5e0d67c5-0869-42e5-b8f1-7436a3e3b274","block_type":"box","text":"loans that meet government underwriting requirements.","page_number":468,"box":{"x":117,"y":490,"width":416,"height":12}},{"id":"30df8b6e-c3ff-4a46-a500-474b5929ff87","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools","page_number":468,"box":{"x":116,"y":521,"width":758,"height":12}},{"id":"54b6d075-e342-4dea-9bb2-8048c5a056d2","block_type":"box","text":"that contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting","page_number":468,"box":{"x":116,"y":537,"width":746,"height":12}},{"id":"12a03a6b-af9a-45d0-8e59-973220efb12e","block_type":"box","text":"mortgage loan repayments may include a general economic turndown, high unemployment, a general","page_number":468,"box":{"x":117,"y":552,"width":759,"height":12}},{"id":"901719e6-31e7-4dfe-9ce2-d726fd08065c","block_type":"box","text":"slowdown in the real estate market, a drop in the market prices of real estate, or an increase in interest","page_number":468,"box":{"x":116,"y":568,"width":768,"height":12}},{"id":"d95e57f8-612d-4f0a-b618-5a870e17acbd","block_type":"box","text":"rates resulting in higher mortgage payments by holders of adjustable rate mortgages.","page_number":468,"box":{"x":117,"y":583,"width":637,"height":12}},{"id":"6a92d715-86c8-483b-8e6f-f26c589a44d0","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited","page_number":468,"box":{"x":117,"y":614,"width":767,"height":12}},{"id":"08a00fea-6a81-4aa4-ae20-c9f324165d5c","block_type":"box","text":"market for the securities, especially when there is a perceived weakness in the mortgage and real","page_number":468,"box":{"x":117,"y":630,"width":729,"height":12}},{"id":"05557e0a-7529-41e7-848a-572cd50a5948","block_type":"box","text":"estate market sectors. Without an active trading market, mortgage-related securities held in a Fund’s","page_number":468,"box":{"x":116,"y":645,"width":753,"height":12}},{"id":"746a0cba-c7b9-4396-bc28-b232f7088596","block_type":"box","text":"portfolio may be particularly difficult to value because of the complexities involved in assessing the","page_number":468,"box":{"x":117,"y":661,"width":729,"height":12}},{"id":"f0c92889-165f-4dd7-aafe-dce04af68d05","block_type":"box","text":"value of the underlying mortgage loans.","page_number":468,"box":{"x":116,"y":676,"width":293,"height":12}},{"id":"88dc13ee-df04-45e9-b3c2-b4fbade4bdf7","block_type":"box","text":"Collateralized Mortgage Obligations (“CMOs”).","page_number":468,"box":{"x":117,"y":707,"width":343,"height":12}},{"id":"c931ede9-1587-4eb9-bbbb-ceea407bf9b9","block_type":"box","text":"CMOs are debt obligations collateralized by residential","page_number":468,"box":{"x":467,"y":707,"width":404,"height":12}},{"id":"6e49188e-e553-491e-ba1f-9d592c18a89a","block_type":"box","text":"or commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest","page_number":468,"box":{"x":116,"y":723,"width":758,"height":12}},{"id":"e3cf2311-a35c-4e9e-8321-92af80e4d7ad","block_type":"box","text":"and prepaid principal are generally paid monthly. CMOs may be collateralized by whole mortgage","page_number":468,"box":{"x":116,"y":738,"width":724,"height":12}},{"id":"3cb59192-6e1a-49ff-8a2e-89aea95cbfd5","block_type":"box","text":"loans or private mortgage pass-through securities but are more typically collateralized by portfolios of","page_number":468,"box":{"x":117,"y":754,"width":751,"height":12}},{"id":"4db5e776-2339-4db6-b022-8e3efc7400fb","block_type":"box","text":"mortgage pass-through securities guaranteed by Ginnie Mae, Freddie Mac, or Fannie Mae. The issuer","page_number":468,"box":{"x":117,"y":769,"width":761,"height":12}},{"id":"ae80d6af-45d2-45ad-bbff-3fc0daaf65ee","block_type":"box","text":"of a series of CMOs may elect to be treated as a Real Estate Mortgage Investment Conduit (“REMIC”).","page_number":468,"box":{"x":116,"y":785,"width":763,"height":12}},{"id":"2c8fe517-2fff-4a04-96e4-696b58eb476d","block_type":"box","text":"All future references to CMOs also include REMICs.","page_number":468,"box":{"x":116,"y":800,"width":386,"height":10}},{"id":"c6d2750c-843a-47ca-8af1-40bba8fa2cd9","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific","page_number":468,"box":{"x":117,"y":831,"width":746,"height":12}},{"id":"6c2c3754-ceec-4b48-9f77-8d01da2edfee","block_type":"box","text":"adjustable or fixed interest rate, and bearing a different stated maturity date and each must be fully","page_number":468,"box":{"x":116,"y":847,"width":738,"height":12}},{"id":"9f94866e-605e-4a09-b9e4-0ee2b6085edb","block_type":"box","text":"retired no later than its final distribution date. Actual maturity and average life will depend upon the","page_number":468,"box":{"x":117,"y":862,"width":734,"height":12}},{"id":"9ad18586-4b5d-4f92-91e3-44f4ec758130","block_type":"box","text":"prepayment experience of the collateral, which is ordinarily unrelated to the stated maturity date.","page_number":468,"box":{"x":117,"y":878,"width":719,"height":12}},{"id":"50b6eb20-253d-45a9-abd9-9d2511c2dc39","block_type":"box","text":"II-70","page_number":468,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"887598b2-7980-4017-aa9e-6468d1c5480c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":468,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1185160c-f5a3-4bed-a24a-cb903be70607","block_type":"box","text":"CMOs often provide for a modified form of call protection through a de facto breakdown of the","page_number":469,"box":{"x":117,"y":87,"width":700,"height":12}},{"id":"3bbbc148-d26c-4c9e-8120-a21576762d3b","block_type":"box","text":"underlying pool of mortgages according to how quickly the loans are repaid. Monthly payment of","page_number":469,"box":{"x":117,"y":102,"width":718,"height":13}},{"id":"561f2d4d-6689-405f-a088-bfb785012f0e","block_type":"box","text":"principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":469,"box":{"x":117,"y":118,"width":740,"height":12}},{"id":"9bb3458f-e038-4764-b959-b9602dadac9f","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually","page_number":469,"box":{"x":117,"y":134,"width":729,"height":12}},{"id":"3a78a05d-7158-4c09-a903-e7f60e9f6a36","block_type":"box","text":"receive principal only after the first class has been retired. An investor may be partially protected","page_number":469,"box":{"x":117,"y":149,"width":719,"height":12}},{"id":"295a19f4-3a25-496c-8c7a-53a378d7e75b","block_type":"box","text":"against a sooner than desired return of principal because of the sequential payments.","page_number":469,"box":{"x":116,"y":165,"width":640,"height":12}},{"id":"1f3c0ade-e680-4338-b295-7df072429e8c","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":469,"box":{"x":117,"y":196,"width":755,"height":12}},{"id":"76905b0b-a844-4456-89d9-b1e092442485","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by","page_number":469,"box":{"x":117,"y":211,"width":771,"height":12}},{"id":"1cfdf0ef-af91-4334-8800-e41a701cbc90","block_type":"box","text":"the Investment Company Act on investments by a Fund in other investment companies. In addition, in","page_number":469,"box":{"x":116,"y":227,"width":761,"height":12}},{"id":"6d0d4c38-68a6-4785-a4ae-517a4df708d8","block_type":"box","text":"reliance on an earlier Commission interpretation, a Fund’s investments in certain other qualifying","page_number":469,"box":{"x":117,"y":242,"width":721,"height":12}},{"id":"f1033464-8602-4245-9649-6b13b24b6dca","block_type":"box","text":"CMOs, which cannot or do not rely on the rule, are also not subject to the limitation of the Investment","page_number":469,"box":{"x":117,"y":258,"width":753,"height":12}},{"id":"7e5768d3-5106-4fc4-9a1c-73901fec03da","block_type":"box","text":"Company Act on acquiring interests in other investment companies. In order to be able to rely on the","page_number":469,"box":{"x":117,"y":273,"width":750,"height":12}},{"id":"e59e4a85-f548-4d95-a160-3a58d53fb8d6","block_type":"box","text":"Commission’s interpretation, these CMOs must be unmanaged, fixed asset issuers, that: (1) invest","page_number":469,"box":{"x":117,"y":289,"width":736,"height":12}},{"id":"37598c97-260a-45fa-b5d0-cb879177b5d1","block_type":"box","text":"primarily in mortgage-backed securities; (2) do not issue redeemable securities; (3) operate under","page_number":469,"box":{"x":117,"y":304,"width":730,"height":12}},{"id":"6dc0175d-2773-4ce0-b775-38850b6d090c","block_type":"box","text":"general exemptive orders exempting them from all provisions of the Investment Company Act; and","page_number":469,"box":{"x":116,"y":320,"width":736,"height":12}},{"id":"91a0e727-89c6-4352-b59c-358477c9afd0","block_type":"box","text":"(4) are not registered or regulated under the Investment Company Act as investment companies. To","page_number":469,"box":{"x":117,"y":335,"width":748,"height":12}},{"id":"4e992564-8040-4891-ba1b-97ae4cabb18b","block_type":"box","text":"the extent that a Fund selects CMOs that cannot rely on the rule or do not meet the above","page_number":469,"box":{"x":116,"y":351,"width":674,"height":12}},{"id":"48497ca5-abf7-4671-9181-0526563d3351","block_type":"box","text":"requirements, the Fund may not invest more than 10% of its assets in all such entities and may not","page_number":469,"box":{"x":117,"y":366,"width":738,"height":12}},{"id":"eb450b42-c053-4920-8a77-ba9e84ebe714","block_type":"box","text":"acquire more than 3% of the voting securities of any single such entity.","page_number":469,"box":{"x":116,"y":382,"width":530,"height":12}},{"id":"ef5cfec1-9296-4e22-9326-dbff8d571bc3","block_type":"box","text":"A Fund may also invest in, among other things, parallel pay CMOs, sequential pay CMOs, and floating","page_number":469,"box":{"x":116,"y":413,"width":765,"height":12}},{"id":"4cd8741e-d353-43c6-8519-2dc123d83386","block_type":"box","text":"rate CMOs. Parallel pay CMOs are structured to provide payments of principal on each payment date","page_number":469,"box":{"x":117,"y":428,"width":757,"height":12}},{"id":"c3f6ce10-4893-4a59-93d0-632c85fe71e6","block_type":"box","text":"to more than one class, concurrently on a proportionate or disproportionate basis. These simultaneous","page_number":469,"box":{"x":116,"y":444,"width":766,"height":12}},{"id":"baa89417-dbfa-4cbd-8fb2-704a6360a59b","block_type":"box","text":"payments are taken into account in calculating the final distribution date of each class. Sequential pay","page_number":469,"box":{"x":117,"y":459,"width":759,"height":12}},{"id":"2d98b47a-fb9d-41e5-9bab-535f3a6d6372","block_type":"box","text":"CMOs generally pay principal to only one class at a time while paying interest to several classes. A","page_number":469,"box":{"x":117,"y":475,"width":739,"height":12}},{"id":"420356f4-3a8f-42d6-aa1a-33e03d46d034","block_type":"box","text":"wide variety of REMIC Certificates may be issued in the parallel pay or sequential pay structures.","page_number":469,"box":{"x":116,"y":490,"width":726,"height":12}},{"id":"2f66ce9a-89a0-4937-adc3-6c4fe4aaabfe","block_type":"box","text":"These securities include accrual certificates (also known as “Z-Bonds”), which only accrue interest at a","page_number":469,"box":{"x":116,"y":506,"width":767,"height":12}},{"id":"65f06d69-2a93-4b55-9622-00c16ada47e4","block_type":"box","text":"specified rate until all other certificates having an earlier final distribution date have been retired and","page_number":469,"box":{"x":116,"y":521,"width":746,"height":12}},{"id":"878de143-5b06-4a68-b2f2-a9f1592c6622","block_type":"box","text":"are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose","page_number":469,"box":{"x":116,"y":537,"width":718,"height":12}},{"id":"515628b8-e9ca-4b30-8ee4-f118fb89f66a","block_type":"box","text":"coupon rate fluctuates according to some formula related to an existing market index or rate. Typical","page_number":469,"box":{"x":116,"y":552,"width":750,"height":12}},{"id":"782949d4-410c-4208-8f0f-02167536298d","block_type":"box","text":"indices would include the eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and","page_number":469,"box":{"x":117,"y":568,"width":758,"height":12}},{"id":"54d074f7-8c33-4766-8f7e-33d69f3030c0","block_type":"box","text":"ten-year Treasury yields.","page_number":469,"box":{"x":116,"y":583,"width":190,"height":12}},{"id":"fedb630e-15e6-4d38-bb09-e9128ecdf66a","block_type":"box","text":"Classes of CMOs also include planned amortization","page_number":469,"box":{"x":117,"y":614,"width":380,"height":12}},{"id":"dd3806a1-8642-4641-aae4-e9e40a584c74","block_type":"box","text":"classes (“PACs”) and targeted amortization classes","page_number":469,"box":{"x":498,"y":614,"width":378,"height":12}},{"id":"ba27c769-5563-4341-bbf6-72ce732c40e2","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a s","page_number":469,"box":{"x":117,"y":630,"width":402,"height":12}},{"id":"8077533e-a3eb-419f-b4c5-a9d7f2750817","block_type":"box","text":"pecified amount of principal on each payment","page_number":469,"box":{"x":521,"y":630,"width":334,"height":12}},{"id":"196ba4c8-d28c-4d65-abfd-15a1b0be3fbe","block_type":"box","text":"date. The scheduled principal payments for PAC Certifi","page_number":469,"box":{"x":116,"y":645,"width":399,"height":12}},{"id":"980b4bfa-f055-42d3-86dc-a803c0927a00","block_type":"box","text":"cates generally have the highest priority on each","page_number":469,"box":{"x":517,"y":645,"width":357,"height":12}},{"id":"c2a83c2c-b158-44b7-80d0-1a59274f1cb6","block_type":"box","text":"payment date after interest due has been paid to all","page_number":469,"box":{"x":117,"y":661,"width":373,"height":12}},{"id":"9c179ceb-2939-40b1-aac4-10e47cde4196","block_type":"box","text":"classes entitled to receive interest currently.","page_number":469,"box":{"x":496,"y":661,"width":317,"height":12}},{"id":"a72fc083-5072-4e28-b976-b77468bac448","block_type":"box","text":"Shortfalls, if any, are added to the amount payabl","page_number":469,"box":{"x":116,"y":676,"width":357,"height":12}},{"id":"590f7236-db30-48f7-a21d-246be491ff32","block_type":"box","text":"e on the next payment date. The PAC Certificate","page_number":469,"box":{"x":475,"y":676,"width":353,"height":12}},{"id":"eb59a89a-a818-49be-a313-d171c035139d","block_type":"box","text":"payment schedule is taken into account in calculating","page_number":469,"box":{"x":117,"y":692,"width":386,"height":12}},{"id":"35aa9f78-09ee-4526-bda4-ea4d02dd1a58","block_type":"box","text":"the final distribution date of each class of PAC. In","page_number":469,"box":{"x":508,"y":692,"width":357,"height":9}},{"id":"2c2b9092-fa42-4505-8601-a1617fba2136","block_type":"box","text":"order to create PAC tranches, one or more tranches gener","page_number":469,"box":{"x":116,"y":707,"width":426,"height":12}},{"id":"82b4c41a-2588-4015-8c8d-1af1c95c2aa5","block_type":"box","text":"ally must be created that absorb most of the","page_number":469,"box":{"x":542,"y":707,"width":320,"height":12}},{"id":"84bae19d-5554-4e3f-843f-de67b9b4371c","block_type":"box","text":"volatility in the underlying mortgage assets. These","page_number":469,"box":{"x":116,"y":723,"width":364,"height":12}},{"id":"c8dd6de8-b97f-4923-8639-88f53d469f8d","block_type":"box","text":"tranches (often called “supports” or “companion”","page_number":469,"box":{"x":485,"y":723,"width":351,"height":12}},{"id":"7e3c13b6-ae55-4be3-99a0-d0e944984c3a","block_type":"box","text":"tranches) tend to have market prices and yields","page_number":469,"box":{"x":116,"y":738,"width":345,"height":12}},{"id":"745fb884-b9be-4ac2-9adf-e80cdd1acd86","block_type":"box","text":"that are more volatile than the PAC classes.","page_number":469,"box":{"x":466,"y":738,"width":319,"height":10}},{"id":"b1d89c31-4941-4337-91cb-e6afa2dbbc90","block_type":"box","text":"TACs are similar to PACs in that they require that specified amounts of principal be applied on each","page_number":469,"box":{"x":116,"y":769,"width":739,"height":12}},{"id":"81668580-90a5-4908-a0ad-96e7bbe9aa65","block_type":"box","text":"payment date to one or more classes of REMIC Certificates. A PAC’s payment schedule, however,","page_number":469,"box":{"x":117,"y":785,"width":732,"height":12}},{"id":"e086cb82-8e64-4438-a00d-58ef70b1bc33","block_type":"box","text":"remains in effect as long as prepayment rates on the underlying mortgages do not exceed certain","page_number":469,"box":{"x":117,"y":800,"width":722,"height":12}},{"id":"c74949b8-5202-4678-b9a1-89b464ce69ee","block_type":"box","text":"ranges. In contrast, a TAC provides investors with protection, to a certain level, against either faster","page_number":469,"box":{"x":117,"y":816,"width":738,"height":12}},{"id":"fb573a92-0f9e-4bd5-9ac4-5c53462a61e8","block_type":"box","text":"than expected or slower than expected prepayment rates, but not both. TACs thus provide more cash","page_number":469,"box":{"x":116,"y":831,"width":759,"height":12}},{"id":"2e918853-9997-435b-aa06-66ef5a03cc0d","block_type":"box","text":"flow stability than a regular sequential paying class, but less than a PAC. TACs also tend to have","page_number":469,"box":{"x":116,"y":847,"width":725,"height":12}},{"id":"f8a83b2a-494d-4b4c-86a6-c1ba73d36ef8","block_type":"box","text":"market prices and yields that are more volatile than PACs.","page_number":469,"box":{"x":117,"y":862,"width":437,"height":12}},{"id":"17a94bf7-6af9-43d6-853b-0d274e72e367","block_type":"box","text":"II-71","page_number":469,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"91e1a572-7577-49f7-a9a6-fcfc7bcce167","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":469,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"da66442a-28c8-4ea1-a71b-8df7478270a4","block_type":"box","text":"Adjustable Rate Mortgage Securities.","page_number":470,"box":{"x":115,"y":87,"width":277,"height":12}},{"id":"89ea93f5-11e0-4419-aae5-082e0946f4fa","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through","page_number":470,"box":{"x":393,"y":87,"width":479,"height":12}},{"id":"8796573c-b364-43d3-a00a-c914d2d8838d","block_type":"box","text":"securities collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for","page_number":470,"box":{"x":116,"y":102,"width":706,"height":13}},{"id":"d591d52d-4979-4716-9b2c-2f254f243abc","block_type":"box","text":"inclusion in a mortgage pool generally provide for a fixed initial mortgage interest rate for a set number","page_number":470,"box":{"x":117,"y":118,"width":764,"height":12}},{"id":"1000e66f-a695-4100-a550-589a8f1577c3","block_type":"box","text":"of scheduled monthly payments. After that schedule of payments has been completed, the interest","page_number":470,"box":{"x":116,"y":134,"width":736,"height":12}},{"id":"ff82c927-60b9-4762-a972-189e4e45981d","block_type":"box","text":"rates are subject to periodic adjustment based on changes to a designated benchmark index.","page_number":470,"box":{"x":117,"y":149,"width":697,"height":12}},{"id":"5b34427e-8c21-40a1-afca-6bf316792976","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary","page_number":470,"box":{"x":116,"y":180,"width":741,"height":12}},{"id":"76959192-d0d5-4ea9-b1d3-f70b6e3f0d92","block_type":"box","text":"over the lifetime of the security. In addition, certain ARMs provide for additional limitations on the","page_number":470,"box":{"x":116,"y":196,"width":722,"height":12}},{"id":"528d8ebc-2e50-4948-8f98-a466d13376ff","block_type":"box","text":"maximum amount by which the mortgage interest rate may adjust for any single adjustment period. In","page_number":470,"box":{"x":117,"y":211,"width":758,"height":12}},{"id":"371444b4-b465-43e4-996b-647073b9fc51","block_type":"box","text":"the event that market rates of interest rise more rapidly to levels above that of the ARM’s maximum","page_number":470,"box":{"x":116,"y":227,"width":741,"height":12}},{"id":"e6795bc5-a425-4d46-931a-399c5145dfb6","block_type":"box","text":"rate, the ARM’s coupon may represent a below market rate of interest. In these circumstances, the","page_number":470,"box":{"x":117,"y":242,"width":737,"height":12}},{"id":"6d8b6584-3630-4593-bf90-d50b65f66136","block_type":"box","text":"market value of the ARM security will likely have fallen.","page_number":470,"box":{"x":117,"y":258,"width":412,"height":12}},{"id":"513c8d72-00cb-4284-b691-ca3fc363ed92","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a","page_number":470,"box":{"x":117,"y":289,"width":728,"height":12}},{"id":"bf47b63f-63bc-4e84-9e23-97accb76bba4","block_type":"box","text":"monthly payment is not sufficient to pay the interest accruing on an ARM, any such excess interest is","page_number":470,"box":{"x":117,"y":304,"width":754,"height":12}},{"id":"455a0b2a-65e1-424a-9da3-886f3b96b1d4","block_type":"box","text":"added to the principal balance of the mortgage loan, which is repaid through future monthly payments.","page_number":470,"box":{"x":116,"y":320,"width":764,"height":12}},{"id":"cc295c63-3c41-4376-ab2e-a4098993cf6b","block_type":"box","text":"If the monthly payment for such an instrument exceeds the sum of the interest accrued at the","page_number":470,"box":{"x":117,"y":335,"width":695,"height":12}},{"id":"150cb034-0804-419d-81b9-81748f33b43b","block_type":"box","text":"applicable mortgage interest rate and the principal payment required at such point to amortize the","page_number":470,"box":{"x":116,"y":351,"width":730,"height":12}},{"id":"9f56b10d-f3c3-4914-8403-623493ceeef1","block_type":"box","text":"outstanding principal balance over the remaining term of the loan, the excess is then used to reduce","page_number":470,"box":{"x":116,"y":366,"width":748,"height":12}},{"id":"333b4689-1826-4a34-bd49-2893e7ebaf5f","block_type":"box","text":"the outstanding principal balance of the ARM.","page_number":470,"box":{"x":116,"y":382,"width":344,"height":12}},{"id":"43df5c45-a62e-4163-af05-33d507f8ed7b","block_type":"box","text":"CMO Residuals.","page_number":470,"box":{"x":117,"y":413,"width":120,"height":9}},{"id":"9af9c40b-e6ff-4915-91d0-9145d4a63a07","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or","page_number":470,"box":{"x":238,"y":413,"width":546,"height":12}},{"id":"6981c313-c540-45d6-ac64-42c00fd9089c","block_type":"box","text":"instrumentalities of the U.S. Government or by private originators of, or investors in, mortgage loans,","page_number":470,"box":{"x":117,"y":428,"width":750,"height":12}},{"id":"d017255e-c0c8-46d5-82e4-474832928742","block_type":"box","text":"including savings and loan associations, homebuilders, mortgage banks, commercial banks,","page_number":470,"box":{"x":117,"y":444,"width":688,"height":12}},{"id":"939efb9e-aa3d-4771-b090-05e58198d880","block_type":"box","text":"investment banks, and special purpose entities of the foregoing. The cash flow generated by the","page_number":470,"box":{"x":117,"y":459,"width":718,"height":12}},{"id":"eb9f2334-0795-445a-a090-ae0970b9f3ce","block_type":"box","text":"mortgage assets underlying a series of CMOs is applied first to make required payments of principal","page_number":470,"box":{"x":117,"y":475,"width":747,"height":12}},{"id":"f799a3e1-272f-4769-8e31-9a00de6cf5f4","block_type":"box","text":"and interest on the CMOs and second to pay the related administrative expenses and any","page_number":470,"box":{"x":116,"y":490,"width":673,"height":12}},{"id":"7d3de5e4-65fb-4f74-91a1-16b05666c3be","block_type":"box","text":"management fees of the issuer. The residual in a CMO structure generally represents the interest in","page_number":470,"box":{"x":117,"y":506,"width":746,"height":12}},{"id":"df6b1ebb-256a-4a33-87aa-ce93801a819e","block_type":"box","text":"any excess cash flow remaining after making the foregoing payments. Each payment of such excess","page_number":470,"box":{"x":116,"y":521,"width":753,"height":12}},{"id":"350782d6-c4dc-4ff5-94c5-e1e4e455dd58","block_type":"box","text":"cash flow to a holder of the related CMO residual represents income and/or a return of capital. The","page_number":470,"box":{"x":116,"y":537,"width":738,"height":12}},{"id":"3157363d-9b15-4691-bf0e-8a853b30e84a","block_type":"box","text":"amount of residual cash flow resulting from a CMO will depend on, among other things, the","page_number":470,"box":{"x":116,"y":552,"width":681,"height":12}},{"id":"dd13dd82-3a42-43e5-b854-e9f01db5bfc5","block_type":"box","text":"characteristics of the mortgage assets, the coupon rate of each class of CMO, prevailing interest rates,","page_number":470,"box":{"x":116,"y":568,"width":768,"height":12}},{"id":"22d7abb1-9626-435b-bf73-0f6db5c7060e","block_type":"box","text":"the amount of administrative expenses and the prepayment experience on the mortgage assets. In","page_number":470,"box":{"x":116,"y":583,"width":738,"height":12}},{"id":"3837a5e1-82c7-4add-8e95-d19cd487bd45","block_type":"box","text":"part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the related","page_number":470,"box":{"x":117,"y":599,"width":748,"height":12}},{"id":"3e816f9f-a6d2-4c69-8f4f-07a3c24b727e","block_type":"box","text":"underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":470,"box":{"x":117,"y":614,"width":770,"height":12}},{"id":"f5a18b65-3ed9-4fbc-b445-fa6625b1e3bf","block_type":"box","text":"securities. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate,","page_number":470,"box":{"x":116,"y":630,"width":746,"height":12}},{"id":"04db204b-a578-4a62-aec6-f70059f5548f","block_type":"box","text":"the yield to maturity on the related CMO residual will also be extremely sensitive to changes in the","page_number":470,"box":{"x":116,"y":645,"width":733,"height":12}},{"id":"4e4f6676-f29e-4a98-b94d-869783826b60","block_type":"box","text":"level of the index upon which interest rate adjustments are based. In certain circumstances, a Fund","page_number":470,"box":{"x":117,"y":661,"width":735,"height":12}},{"id":"302007eb-c651-41e7-9e5a-946a04ebae3e","block_type":"box","text":"may fail to recoup fully its initial investment in a CMO residual.","page_number":470,"box":{"x":117,"y":676,"width":459,"height":12}},{"id":"3a330fd4-d04f-4f32-9fcf-0e3410069810","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more","page_number":470,"box":{"x":117,"y":707,"width":704,"height":12}},{"id":"0143bfba-9b02-43a8-9e6c-8260bd07aab1","block_type":"box","text":"investment banking firms acting as brokers or dealers. Transactions in CMO residuals are generally","page_number":470,"box":{"x":117,"y":723,"width":739,"height":12}},{"id":"bc242f86-5ef9-466a-bc65-1e14a4088889","block_type":"box","text":"completed only after careful review of the characteristics of the securities in question. In addition, CMO","page_number":470,"box":{"x":116,"y":738,"width":763,"height":12}},{"id":"5ed956c2-14da-4dc5-a469-01c54fe6d7c5","block_type":"box","text":"residuals may or, pursuant to an exemption therefrom, may not have been registered under the","page_number":470,"box":{"x":117,"y":754,"width":706,"height":12}},{"id":"45641f24-5238-4932-98c3-c501752a2a3c","block_type":"box","text":"Securities Act. Residual interests generally are junior to, and may be significantly more volatile than,","page_number":470,"box":{"x":116,"y":769,"width":742,"height":12}},{"id":"dd1bda74-319c-4906-9d8d-5fbcadd1f1ed","block_type":"box","text":"“regular” CMO and REMIC interests. CMO residuals, whether or not registered under the Securities","page_number":470,"box":{"x":116,"y":785,"width":739,"height":12}},{"id":"0c6b683b-b640-42d1-af38-ac9be5190da7","block_type":"box","text":"Act, may be subject to certain restrictions on transferability.","page_number":470,"box":{"x":116,"y":800,"width":438,"height":12}},{"id":"37f8c29f-2b08-47d5-a223-7119cb2f7ae6","block_type":"box","text":"Stripped Mortgage-Backed Securities.","page_number":470,"box":{"x":117,"y":831,"width":280,"height":12}},{"id":"b8c83d9c-7991-4950-be60-f5f0c0dfabe9","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities","page_number":470,"box":{"x":399,"y":831,"width":443,"height":12}},{"id":"520f8214-5e68-404a-937b-c97201bfcdce","block_type":"box","text":"(“SMBSs”) issued by agencies or instrumentalities of the United States. SMBSs are derivative multi","page_number":470,"box":{"x":117,"y":847,"width":740,"height":12}},{"id":"aa23e1c9-9e53-4952-8e46-cdf4908b2f48","block_type":"box","text":"class mortgage-backed securities. SMBS arrangements commonly involve two classes of securities","page_number":470,"box":{"x":116,"y":862,"width":744,"height":12}},{"id":"69494bd9-e10f-48a9-b244-6b91bfe5f116","block_type":"box","text":"that receive different proportions of the interest and principal distributions on a pool of mortgage","page_number":470,"box":{"x":116,"y":878,"width":716,"height":12}},{"id":"00093cd0-82ec-4640-b573-c01a7c87d962","block_type":"box","text":"II-72","page_number":470,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"794a8128-ec7c-42af-8a94-e64a8df684e3","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":470,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"419a23ba-cc06-4bde-97d8-b5a47c49098a","block_type":"box","text":"assets. A common variety of SMBS is where one class (the principal only or PO class) receives some","page_number":471,"box":{"x":116,"y":87,"width":759,"height":12}},{"id":"5d30374f-9e17-4db4-b7a3-77f94da9abfb","block_type":"box","text":"of the interest and most of the principal from the underlying assets, while the other class (the interest","page_number":471,"box":{"x":116,"y":102,"width":752,"height":13}},{"id":"02d264f2-06b9-4de2-8c95-47433201fb4d","block_type":"box","text":"only or IO class) receives most of the interest and the remainder of the principal. In the most extreme","page_number":471,"box":{"x":116,"y":118,"width":755,"height":12}},{"id":"dea299cb-22a6-41c1-9649-2bce3b5faa3e","block_type":"box","text":"case, the IO class receives all of the interest, while","page_number":471,"box":{"x":116,"y":134,"width":382,"height":11}},{"id":"91ea3983-e40b-4d61-b7c8-e3a1e8c07154","block_type":"box","text":"the PO class receives all of the principal. While a","page_number":471,"box":{"x":498,"y":134,"width":368,"height":11}},{"id":"9727e03d-2a01-466b-b38b-05976ad2af59","block_type":"box","text":"Fund may purchase securities of a PO class, a Fund is more likely to purchase the securities of an IO","page_number":471,"box":{"x":117,"y":149,"width":758,"height":12}},{"id":"9ff9b94b-d6a3-4382-84b1-7d101e8ba0c3","block_type":"box","text":"class. The yield to maturity of an IO class is extremely sensitive to the rate of principal payments","page_number":471,"box":{"x":116,"y":165,"width":720,"height":12}},{"id":"5c899c59-d501-4f65-9e7d-b211fb34cbea","block_type":"box","text":"(including prepayments) on the related underlying assets, and a rapid rate of principal prepayments in","page_number":471,"box":{"x":117,"y":180,"width":759,"height":12}},{"id":"9519a456-89e3-4ffd-93e5-6abc9d123f4b","block_type":"box","text":"excess of that considered in pricing the securities will have a material adverse effect on an IO","page_number":471,"box":{"x":116,"y":196,"width":699,"height":12}},{"id":"7e9a56c6-a0dc-41b9-983b-2dbee3d0f679","block_type":"box","text":"security’s yield to maturity. If the underlying mortgage assets experience greater than anticipated","page_number":471,"box":{"x":116,"y":211,"width":724,"height":12}},{"id":"b6eef35f-fffb-4228-851e-f4d1218a2fed","block_type":"box","text":"payments of principal, a Fund may fail to recoup fully its initial investment in IOs. In addition, there are","page_number":471,"box":{"x":117,"y":227,"width":760,"height":12}},{"id":"882b8962-8fcc-4517-9bb8-0a41e70d6968","block_type":"box","text":"certain types of IOs that represent the interest portion of a particular class as opposed to the interest","page_number":471,"box":{"x":116,"y":242,"width":751,"height":12}},{"id":"d9ffae0c-7946-4218-a4a1-9a653674a1a1","block_type":"box","text":"portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":471,"box":{"x":117,"y":258,"width":768,"height":12}},{"id":"b23bdc77-0c0c-449b-bfc6-613c3d52b08d","block_type":"box","text":"because of the characteristics of the principal portion to which they relate. As a result of the above","page_number":471,"box":{"x":117,"y":273,"width":733,"height":12}},{"id":"2795bbc9-0632-42cf-91d9-03e276fbd18e","block_type":"box","text":"factors, a Fund generally will purchase IOs only as a component of so called “synthetic” securities. This","page_number":471,"box":{"x":116,"y":289,"width":772,"height":12}},{"id":"02de0fd3-76d4-4544-a32c-7df8b6e18386","block_type":"box","text":"means that purchases of IOs will be matched with certain purchases of other securities, such as POs,","page_number":471,"box":{"x":117,"y":304,"width":759,"height":12}},{"id":"3721bf37-f154-4da2-8485-7aaff9591177","block_type":"box","text":"inverse floating rate CMOs or fixed rate securities; as interest rates fall, presenting a greater risk of","page_number":471,"box":{"x":117,"y":320,"width":737,"height":12}},{"id":"9642d7f9-57f0-472d-a5cb-0069c4406bf5","block_type":"box","text":"unanticipated prepayments of principal, the negative effect on a Fund because of its holdings of IOs","page_number":471,"box":{"x":117,"y":335,"width":744,"height":12}},{"id":"42efbe68-0c07-4760-a1b6-79537bcb3055","block_type":"box","text":"should be diminished somewhat because of the increased yield on the inverse floating rate CMOs or","page_number":471,"box":{"x":116,"y":351,"width":751,"height":12}},{"id":"5dc4b7a6-46ac-4a02-90cb-323d224b164d","block_type":"box","text":"the increased appreciation on the POs or fixed rate securities.","page_number":471,"box":{"x":116,"y":366,"width":465,"height":12}},{"id":"a20ffecb-4327-45ab-bcbb-45b10c0c4675","block_type":"box","text":"Tiered Index Bonds.","page_number":471,"box":{"x":118,"y":397,"width":141,"height":10}},{"id":"7c0116e3-5d10-455f-b857-5b6744b6215d","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a","page_number":471,"box":{"x":260,"y":397,"width":597,"height":12}},{"id":"d5874f49-0c7c-42be-b779-06dc75676c08","block_type":"box","text":"tiered index bond is tied to a specified index or market ra","page_number":471,"box":{"x":116,"y":413,"width":402,"height":12}},{"id":"d0d974fc-a0df-4ad2-9c7d-b794cd0225b6","block_type":"box","text":"te. So long as this index or market rate is below a","page_number":471,"box":{"x":518,"y":413,"width":356,"height":12}},{"id":"63abf685-7a83-431a-8ace-1915a1cd9a8e","block_type":"box","text":"predetermined “strike” rate, the interest rate on t","page_number":471,"box":{"x":117,"y":428,"width":340,"height":12}},{"id":"20a0b3c0-9ece-48c4-9cb7-246b065a9a37","block_type":"box","text":"he tiered index bond remains fixed. If, however, the","page_number":471,"box":{"x":457,"y":428,"width":368,"height":11}},{"id":"58c02db1-d0bc-4726-9744-2c494eec3f50","block_type":"box","text":"specified index or market rate rises above the “strike","page_number":471,"box":{"x":116,"y":444,"width":372,"height":12}},{"id":"d9b48f77-ed7b-479f-b185-9b004898e24c","block_type":"box","text":"” rate, the interest rate of the tiered index bond will","page_number":471,"box":{"x":488,"y":444,"width":361,"height":11}},{"id":"a5b38473-3149-43da-8417-a8ee70925d8e","block_type":"box","text":"decrease. Thus, under these circumstances, the interest","page_number":471,"box":{"x":116,"y":459,"width":401,"height":11}},{"id":"1d130901-0296-4c9c-b738-def47796c119","block_type":"box","text":"t rate on a tiered index bond, like an inverse floater,","page_number":471,"box":{"x":517,"y":459,"width":364,"height":11}},{"id":"0006f35d-4f1b-4cc8-acce-59e106973e71","block_type":"box","text":"will move in the opposite direction of prevailing interest ra","page_number":471,"box":{"x":116,"y":475,"width":405,"height":12}},{"id":"1627c6d1-d0a1-4125-b0e2-78602cdd142d","block_type":"box","text":"tes, with the result that t","page_number":471,"box":{"x":522,"y":475,"width":169,"height":11}},{"id":"baadbc75-2dcc-4fbe-9e01-e41f43336870","block_type":"box","text":"he price of the tiered index","page_number":471,"box":{"x":692,"y":475,"width":192,"height":12}},{"id":"06919233-f64b-4cc1-9a58-af36456a6430","block_type":"box","text":"bond may be considerably more volatile than that of a fixed-rate bond.","page_number":471,"box":{"x":117,"y":490,"width":501,"height":12}},{"id":"d24d5678-c7c4-4b4c-9a52-6934efcf2a24","block_type":"box","text":"TBA Commitments.","page_number":471,"box":{"x":118,"y":521,"width":142,"height":10}},{"id":"3125a8a5-748e-40e4-8273-40c6e1741671","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA","page_number":471,"box":{"x":262,"y":521,"width":583,"height":12}},{"id":"7baed584-23d3-4584-b476-aaa5b3f28fa8","block_type":"box","text":"commitments are forward agreements for the purchase or sale of securities, including mortgage","page_number":471,"box":{"x":116,"y":537,"width":716,"height":12}},{"id":"ebc87c9b-9b42-4d40-b609-c507392986c1","block_type":"box","text":"backed securities for a fixed price, with payment and delivery on an agreed upon future settlement","page_number":471,"box":{"x":117,"y":552,"width":733,"height":12}},{"id":"137dfa91-6770-4b37-9660-cd7cfc74d3a7","block_type":"box","text":"date. The specific securities to be delivered are not identified at the trade date. However, delivered","page_number":471,"box":{"x":116,"y":568,"width":737,"height":12}},{"id":"f6b343a0-08ab-4c03-8650-7e6af0ea9630","block_type":"box","text":"securities must meet specified terms, including issuer, rate and mortgage terms. When the Fund enters","page_number":471,"box":{"x":116,"y":583,"width":772,"height":12}},{"id":"4d0667a2-fe0e-40e0-937b-c8a680b0323f","block_type":"box","text":"into a TBA commitment for the sale of mortgage-backed securities for a fixed price, with payment and","page_number":471,"box":{"x":117,"y":599,"width":758,"height":12}},{"id":"593a5ec3-d03a-462b-beac-8a9ceaec9e59","block_type":"box","text":"delivery on an agreed upon future settlement date (which may be referred to as having a short position","page_number":471,"box":{"x":116,"y":614,"width":767,"height":12}},{"id":"0e08ab76-c024-4cbf-8ae8-03c37ced8aee","block_type":"box","text":"in such TBA securities), the Fund may or may not hold the types of mortgage-backed securities","page_number":471,"box":{"x":117,"y":630,"width":712,"height":12}},{"id":"3f2981ff-bf2b-474f-bf69-cd4967d395d6","block_type":"box","text":"required to be delivered. See “— When-Issued Securities, Delayed Delivery Securities and Forward","page_number":471,"box":{"x":117,"y":645,"width":743,"height":12}},{"id":"b2fc6f19-fd60-46f4-82e2-82b344659daf","block_type":"box","text":"Commitments” below.","page_number":471,"box":{"x":117,"y":661,"width":160,"height":9}},{"id":"3e53f71e-9f5c-4b04-b858-15a1e93b3f42","block_type":"box","text":"Mortgage Dollar Rolls.","page_number":471,"box":{"x":116,"y":692,"width":164,"height":12}},{"id":"e4bde27a-0c8f-4286-92ea-544f9a6036f7","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll","page_number":471,"box":{"x":288,"y":692,"width":550,"height":12}},{"id":"7d6af911-edc6-4dfc-a2b5-a8419bcc8ffc","block_type":"box","text":"transaction, a Fund sells mortgage-backed securities for delivery in the current month and","page_number":471,"box":{"x":116,"y":707,"width":667,"height":12}},{"id":"af9c0de0-d270-423b-9550-c0f7ee2d60b9","block_type":"box","text":"simultaneously contracts to repurchase substantially similar securities on a specified future date. The","page_number":471,"box":{"x":116,"y":723,"width":750,"height":12}},{"id":"8e6ca34b-5d82-47bb-a4bd-7e100d5df1f2","block_type":"box","text":"securities that are repurchased will bear the same interest rate and a similar maturity as those sold, but","page_number":471,"box":{"x":116,"y":738,"width":766,"height":12}},{"id":"f0a1d871-4ec7-4b6c-81bd-65dbd748d042","block_type":"box","text":"pools of mortgages collateralizing those securities may have different prepayment histories than those","page_number":471,"box":{"x":117,"y":754,"width":757,"height":12}},{"id":"ab119147-f089-4c5d-a5df-c19d80f24cf1","block_type":"box","text":"sold. During the period between the sale and repurchase, a Fund will not be entitled to receive interest","page_number":471,"box":{"x":116,"y":769,"width":760,"height":12}},{"id":"81eeca75-ade9-4dda-b09a-f76365125ee2","block_type":"box","text":"and principal payments on the securities sold. Proceeds of the sale will be invested in additional","page_number":471,"box":{"x":116,"y":785,"width":710,"height":12}},{"id":"0ec17e3e-3274-452f-a37d-41678275d83b","block_type":"box","text":"instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":471,"box":{"x":117,"y":800,"width":757,"height":12}},{"id":"ac1652db-2aeb-4d7e-b29d-8474b00bcab8","block_type":"box","text":"such income does not exceed the income, capital appreciation and gain or loss that would have been","page_number":471,"box":{"x":116,"y":816,"width":751,"height":12}},{"id":"4cc97c3d-b520-4ef8-8fb0-7445456dfe3b","block_type":"box","text":"realized on the securities sold as part of the dollar roll, the use of this technique will diminish the","page_number":471,"box":{"x":117,"y":831,"width":715,"height":12}},{"id":"9f1ef68c-4260-483f-b7dc-1709c4ea7197","block_type":"box","text":"investment performance of a Fund compared with what the performance would have been without the","page_number":471,"box":{"x":117,"y":847,"width":759,"height":12}},{"id":"f81f611d-5532-441c-9c96-57a17a2c77d9","block_type":"box","text":"use of dollar rolls.","page_number":471,"box":{"x":117,"y":862,"width":135,"height":10}},{"id":"c67a6ee1-bf2d-4709-9a93-baaed24ab13a","block_type":"box","text":"II-73","page_number":471,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"f56d3d60-ae7b-4c3f-9f80-122ecceb8149","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":471,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"6e7e1baa-f749-4107-a4cf-56abd5c0c955","block_type":"box","text":"Each mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and","page_number":472,"box":{"x":117,"y":87,"width":760,"height":12}},{"id":"3c4762e3-64b3-4faa-a61c-71d43d066388","block_type":"box","text":"a subsequent purchase or sale of a substantially similar security in the forward market. Transactions in","page_number":472,"box":{"x":116,"y":102,"width":767,"height":13}},{"id":"0ff3cb87-bf59-4ca9-a159-94fec6bdf63d","block_type":"box","text":"mortgage dollar rolls may increase trading costs and portfolio turnover.","page_number":472,"box":{"x":117,"y":118,"width":529,"height":12}},{"id":"83f45b09-892e-4976-98ed-a97611c5eecc","block_type":"box","text":"In the event the buyer of the securities under a mortgage dollar roll files for bankruptcy or becomes","page_number":472,"box":{"x":117,"y":150,"width":738,"height":12}},{"id":"4cd50390-610c-42e8-9567-e1e691f2b334","block_type":"box","text":"insolvent, a Fund’s use of the proceeds of the current sale portion of the transaction may be restricted","page_number":472,"box":{"x":117,"y":166,"width":760,"height":12}},{"id":"cf0f6e59-f547-4158-8cb4-b9f47479609e","block_type":"box","text":"pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund’s","page_number":472,"box":{"x":117,"y":181,"width":738,"height":12}},{"id":"dffe5371-b5db-4f3e-9145-facd92296478","block_type":"box","text":"obligation to purchase the similar securities in the forward transaction.","page_number":472,"box":{"x":116,"y":197,"width":525,"height":12}},{"id":"aa735228-06f5-4fa2-a200-f24611da1d00","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar","page_number":472,"box":{"x":116,"y":229,"width":750,"height":12}},{"id":"c0297ba9-2fb6-40dc-b3fd-f2cd7fb84046","block_type":"box","text":"rolls may depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar","page_number":472,"box":{"x":117,"y":245,"width":765,"height":12}},{"id":"f6cd5129-ac5e-4469-8f6a-91ec5d3c5933","block_type":"box","text":"rolls involve the risk that the market value of the securities subject to a Fund’s forward purchase","page_number":472,"box":{"x":117,"y":260,"width":716,"height":12}},{"id":"c7345736-a7cc-4dc2-a4f4-122df51bf755","block_type":"box","text":"commitment may decline below, or the market value of the securities subject to a Fund’s forward sale","page_number":472,"box":{"x":116,"y":276,"width":758,"height":12}},{"id":"b837ca05-8cb6-468f-a545-188a1cc5d768","block_type":"box","text":"commitment may increase above, the exercise price of the forward commitment. Dollar rolls are","page_number":472,"box":{"x":116,"y":291,"width":715,"height":12}},{"id":"0948524b-2467-473b-9604-bdaeaaabb0d8","block_type":"box","text":"speculative techniques that can be deemed to involve leverage. There is no assurance that dollar rolls","page_number":472,"box":{"x":116,"y":307,"width":763,"height":12}},{"id":"9e3e3a7f-40a7-4301-8155-23d02eca3fd4","block_type":"box","text":"can be successfully employed.","page_number":472,"box":{"x":116,"y":322,"width":233,"height":12}},{"id":"667ee507-3a95-4764-8a96-4cdc6ce28e95","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward","page_number":472,"box":{"x":117,"y":355,"width":740,"height":12}},{"id":"267caafd-7a4c-4549-b589-f85946d3f7b0","block_type":"box","text":"settling securities (e.g., dollar rolls and firm and standby commitments, including TBA commitments)","page_number":472,"box":{"x":116,"y":370,"width":748,"height":12}},{"id":"21f064d6-3a22-4eac-8577-47cd1ad3f88e","block_type":"box","text":"and non-standard settlement cycle securities notwithstanding the limitation on the issuance of senior","page_number":472,"box":{"x":116,"y":386,"width":750,"height":12}},{"id":"55093ff1-ec52-490b-a39f-c2c7b7ec164d","block_type":"box","text":"securities in Section 18 of the Investment Company Act, provided that the transaction meets the","page_number":472,"box":{"x":116,"y":401,"width":718,"height":12}},{"id":"da439eae-4530-4c66-b142-b4a1f329d6ea","block_type":"box","text":"Delayed-Settlement Securities Provision (as defined below under “— When-Issued Securities, Delayed","page_number":472,"box":{"x":117,"y":417,"width":768,"height":12}},{"id":"1c4ff630-951f-4397-b0f9-5b2237008322","block_type":"box","text":"Delivery Securities and Forward Commitments”). If a when-issued, forward-settling or non-standard","page_number":472,"box":{"x":117,"y":432,"width":742,"height":12}},{"id":"77833a7e-87e8-4c0d-b3e9-1e2d40d0f7b5","block_type":"box","text":"settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then it is treated","page_number":472,"box":{"x":116,"y":448,"width":772,"height":12}},{"id":"7eb73315-d84d-4406-b20e-1868ca5fa604","block_type":"box","text":"as a Derivatives Transaction under Rule 18f-4. See “— Derivatives — Regulation of Derivatives —","page_number":472,"box":{"x":116,"y":463,"width":736,"height":12}},{"id":"7b7c20bd-a394-4aed-9153-ad27f2a1788f","block_type":"box","text":"Rule 18f-4 under the Investment Company Act” above.","page_number":472,"box":{"x":117,"y":479,"width":411,"height":12}},{"id":"0eaa46e1-059d-4f18-996e-51b4f0266b8d","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":472,"box":{"x":117,"y":511,"width":270,"height":12}},{"id":"cab1f2b0-9a2a-45f8-80bd-964db542e1b6","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities.","page_number":472,"box":{"x":389,"y":511,"width":449,"height":12}},{"id":"4caf7080-6798-4242-8951-5e20aa52a07a","block_type":"box","text":"These securities are derivative interest-only mortgage securities structured off home equity loan","page_number":472,"box":{"x":116,"y":527,"width":717,"height":12}},{"id":"02b3e5ee-9dc5-4fac-857c-b01abf5090b6","block_type":"box","text":"transactions. NIM securities receive any “excess” interest computed after paying coupon costs,","page_number":472,"box":{"x":116,"y":542,"width":710,"height":12}},{"id":"9fdd98a5-5758-4c1f-aa0a-de4c17852c5d","block_type":"box","text":"servicing costs and fees and any credit losses associated with the underlying pool of home equity","page_number":472,"box":{"x":116,"y":558,"width":728,"height":12}},{"id":"c6faf015-0ad1-405b-9590-5d54808777ef","block_type":"box","text":"loans. Like traditional stripped mortgage-backed securities, the yield to maturity on a NIM security is","page_number":472,"box":{"x":117,"y":573,"width":745,"height":12}},{"id":"ccb674ca-7cae-40f2-93e0-40153c7c8fb3","block_type":"box","text":"sensitive not only to changes in prevailing interest rates but also to the rate of principal payments","page_number":472,"box":{"x":116,"y":589,"width":725,"height":12}},{"id":"469a26b4-bf96-435b-9aaa-5cc63cf73e7e","block_type":"box","text":"(including prepayments) on the underlying home equity loans. NIM securities are highly sensitive to","page_number":472,"box":{"x":117,"y":604,"width":740,"height":12}},{"id":"22b754e1-b4ca-4876-9b68-24a1b6f7fa8c","block_type":"box","text":"credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":472,"box":{"x":116,"y":620,"width":657,"height":12}},{"id":"5edf09ec-6d39-4a47-a77a-a5c1964485cc","block_type":"box","text":"Municipal Investments.","page_number":472,"box":{"x":116,"y":652,"width":177,"height":12}},{"id":"58ddf022-8d11-4ce0-af6e-3b2f2d0084c5","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of","page_number":472,"box":{"x":117,"y":676,"width":759,"height":12}},{"id":"04feb392-a164-40f1-8fac-3e6148e280a4","block_type":"box","text":"the United States and the District of Columbia and their political subdivisions, agencies and","page_number":472,"box":{"x":116,"y":691,"width":676,"height":12}},{"id":"25dd61c3-679d-4138-a5c8-0de6ef3b5f65","block_type":"box","text":"instrumentalities, the payments from which, in the opinion of bond counsel to the issuer, are excludable","page_number":472,"box":{"x":117,"y":707,"width":765,"height":12}},{"id":"39dc172e-dd05-4b66-9bb5-7e2eea2dba8d","block_type":"box","text":"from gross income for U.S. federal income tax purposes (“Municipal Bonds”). Certain of the Municipal","page_number":472,"box":{"x":116,"y":722,"width":752,"height":12}},{"id":"180fa55d-81dc-4ee6-a4b0-832e9179ad13","block_type":"box","text":"Funds may also invest in Municipal Bonds that pay interest excludable from gross income for purposes","page_number":472,"box":{"x":117,"y":738,"width":762,"height":12}},{"id":"31bd9e58-c556-4a14-9bee-312b484c09c1","block_type":"box","text":"of state and local income taxes of the designated state and/or allow the value of a Fund’s shares to be","page_number":472,"box":{"x":116,"y":753,"width":759,"height":12}},{"id":"5ee56983-5992-4565-b626-976805107d9e","block_type":"box","text":"exempt from state and local taxes of the designated state (“State Municipal Bonds”). The Municipal","page_number":472,"box":{"x":116,"y":769,"width":734,"height":12}},{"id":"0763970f-e06e-41b8-8670-0ca10749327b","block_type":"box","text":"Funds may also invest in securities not issued by or on behalf of a state or territory or by an agency or","page_number":472,"box":{"x":117,"y":784,"width":757,"height":12}},{"id":"22b219dd-3944-4c82-afe5-fe076cf976ae","block_type":"box","text":"instrumentality thereof, if the Manager believes such securities to pay interest excludable from gross","page_number":472,"box":{"x":117,"y":800,"width":743,"height":12}},{"id":"40188275-d5c4-4605-aa9d-b7887e7e9f5b","block_type":"box","text":"income for purposes of U.S. federal income tax and state and local income taxes of the designated","page_number":472,"box":{"x":117,"y":815,"width":732,"height":12}},{"id":"f3a1e06c-31d5-450d-a65c-1b6c8314f79b","block_type":"box","text":"state and/or state and local personal property taxes of the designated state (“Non-Municipal","page_number":472,"box":{"x":116,"y":831,"width":686,"height":12}},{"id":"37a84439-7ec0-477c-9d33-3a249c69edbe","block_type":"box","text":"Tax-Exempt Securities”). Non-Municipal Tax-Exempt Securities could include trust certificates or other","page_number":472,"box":{"x":116,"y":846,"width":764,"height":12}},{"id":"b3251b06-1823-4fe1-b0a0-f82e473262e9","block_type":"box","text":"instruments evidencing interest in one or more long-term municipal securities. Non-Municipal","page_number":472,"box":{"x":117,"y":862,"width":693,"height":12}},{"id":"bca1daf5-eaba-45d6-a8ed-d57a5d2444dc","block_type":"box","text":"Tax-Exempt Securities also may include securities issued by other investment companies that invest in","page_number":472,"box":{"x":116,"y":877,"width":770,"height":12}},{"id":"93f6b7ff-e512-4714-9baf-4a3a0d58530b","block_type":"box","text":"II-74","page_number":472,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"8f791161-042d-41a6-9884-39dcece29b31","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":472,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"96aec0e1-4a4f-44e4-b99b-42c8f81774ea","block_type":"box","text":"municipal bonds, to the extent such investments are permitted by applicable law. Non-Municipal","page_number":473,"box":{"x":117,"y":87,"width":715,"height":12}},{"id":"8199f560-e709-489c-a899-abae7ed0b670","block_type":"box","text":"Tax-Exempt Securities that pay interest excludable from gross income for U.S. federal income tax","page_number":473,"box":{"x":116,"y":102,"width":731,"height":13}},{"id":"42788bd4-0948-4778-81c9-463eaee91b5d","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective","page_number":473,"box":{"x":117,"y":118,"width":769,"height":12}},{"id":"0b14c5a5-ec5f-443b-ab71-5d949f5d7123","block_type":"box","text":"and policies. Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for","page_number":473,"box":{"x":116,"y":134,"width":761,"height":12}},{"id":"e7dcd153-0a65-4cd8-8310-c85dc41610b9","block_type":"box","text":"purposes of U.S. federal income tax and state and local income taxes of a designated state and/or","page_number":473,"box":{"x":117,"y":149,"width":734,"height":12}},{"id":"486fc52b-8e53-4230-8bc5-fb53192e9fa5","block_type":"box","text":"allow the value of a Fund’s shares to be exempt from state and local personal property taxes of that","page_number":473,"box":{"x":116,"y":165,"width":745,"height":12}},{"id":"e67642bf-d051-466f-bdb7-27285bf20cb6","block_type":"box","text":"state will be considered “State Municipal Bonds” for purposes of the investment objective and policies","page_number":473,"box":{"x":116,"y":180,"width":758,"height":12}},{"id":"533ea4b3-4a1e-4a63-bbf8-0ac391791b09","block_type":"box","text":"of each of California Municipal Opportunities Fund, New Jersey Municipal Bond Fund, New York","page_number":473,"box":{"x":116,"y":196,"width":720,"height":12}},{"id":"601e4d44-f046-4e3c-bc47-84c1d1173415","block_type":"box","text":"Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":473,"box":{"x":117,"y":211,"width":527,"height":12}},{"id":"19708667-590b-4b65-8b61-60107d1f7f04","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":473,"box":{"x":116,"y":244,"width":519,"height":12}},{"id":"ac2213d8-5378-4bce-91bf-9ffe9b17cb35","block_type":"box","text":"The risks and special","page_number":473,"box":{"x":636,"y":244,"width":168,"height":12}},{"id":"a035a892-a8bb-4aad-b518-651e954b2ead","block_type":"box","text":"considerations involved in investment in Municipal Bonds vary with the types of instruments being","page_number":473,"box":{"x":116,"y":259,"width":729,"height":12}},{"id":"6fed235a-ebbe-42ea-9a2c-da590a32aa74","block_type":"box","text":"acquired. Investments in Non-Municipal Tax-Exempt Securities may present similar risks, depending","page_number":473,"box":{"x":116,"y":275,"width":751,"height":12}},{"id":"c0642071-9dbe-4fc7-a1ca-3338ebf2cdd5","block_type":"box","text":"on the particular product. Certain municipal instruments in which a Fund may invest may be","page_number":473,"box":{"x":116,"y":290,"width":685,"height":12}},{"id":"f9e5c14a-006d-405c-9e73-d11ab1109d12","block_type":"box","text":"characterized as derivatives.","page_number":473,"box":{"x":116,"y":306,"width":218,"height":9}},{"id":"cda53b28-2031-422b-aae5-4db309e49e36","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncertainties in the municipal markets as a","page_number":473,"box":{"x":116,"y":338,"width":768,"height":13}},{"id":"f1818183-2ecf-4e1b-97e2-3890ec1b99c2","block_type":"box","text":"result of legislation or litigation, including legislation or litigation that changes the taxation of Municipal","page_number":473,"box":{"x":117,"y":354,"width":757,"height":12}},{"id":"1153901c-09d0-4b94-8353-704fe7fb5a5c","block_type":"box","text":"Bonds or the rights of Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are","page_number":473,"box":{"x":117,"y":369,"width":764,"height":13}},{"id":"a5ce547b-f6f5-4da5-8808-6bc22466b17b","block_type":"box","text":"rare and certain provisions of the U.S. Bankruptcy Code governing such bankruptcies are unclear.","page_number":473,"box":{"x":117,"y":385,"width":732,"height":12}},{"id":"5ac7185b-bfbc-4b75-9628-e7e7fa32a252","block_type":"box","text":"Further, the application of state law to Municipal Bond issuers could produce varying results among the","page_number":473,"box":{"x":117,"y":400,"width":770,"height":13}},{"id":"c3f75e1c-9015-4b50-8d91-f3acf6c36685","block_type":"box","text":"states or among Municipal Bond issuers within a state. These uncertainties could have a significant","page_number":473,"box":{"x":116,"y":416,"width":742,"height":12}},{"id":"bc2b43ae-8bbb-4432-aea9-af8ac20215e4","block_type":"box","text":"impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":473,"box":{"x":117,"y":431,"width":513,"height":12}},{"id":"6e164df6-43f1-4007-b193-a3625baea0ae","block_type":"box","text":"Description of Municipal Bonds.","page_number":473,"box":{"x":116,"y":464,"width":240,"height":12}},{"id":"bfcfbb38-0b90-430f-8a20-b6557518eb6b","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including","page_number":473,"box":{"x":117,"y":488,"width":757,"height":12}},{"id":"4de338d2-d43b-4db1-a375-1a29e4a6760b","block_type":"box","text":"the construction of a wide range of public facilities, refunding of outstanding obligations and obtaining","page_number":473,"box":{"x":116,"y":504,"width":756,"height":12}},{"id":"43f0c6b9-178f-4769-8398-1bc7b89f1f6e","block_type":"box","text":"funds for general operating expenses and loans to other public institutions and facilities. In addition,","page_number":473,"box":{"x":116,"y":519,"width":744,"height":12}},{"id":"f0b174a2-a0b1-47fa-870f-69d2106bada9","block_type":"box","text":"certain types of bonds are issued by or on behalf of public authorities to finance various privately","page_number":473,"box":{"x":116,"y":535,"width":721,"height":12}},{"id":"15e7f708-8f8d-4be7-9e2e-e83d5e69f008","block_type":"box","text":"owned or operated facilities, including certain facilities for the local furnishing of electric energy or gas,","page_number":473,"box":{"x":116,"y":550,"width":763,"height":12}},{"id":"a8494333-aaf7-4821-8456-4b30f4ae60d7","block_type":"box","text":"sewage facilities, solid waste disposal facilities and other specialized facilities. Such obligations are","page_number":473,"box":{"x":116,"y":566,"width":740,"height":12}},{"id":"3cd2c63d-d611-4bfa-b70c-2874ca0ee4c6","block_type":"box","text":"included within the term Municipal Bonds if the interest paid thereon is excluded from gross income for","page_number":473,"box":{"x":117,"y":581,"width":764,"height":12}},{"id":"c6be68d9-5365-4d9b-9b19-d43cea364731","block_type":"box","text":"U.S. federal income tax purposes and any applicable state and local taxes. Other types of private","page_number":473,"box":{"x":117,"y":597,"width":726,"height":12}},{"id":"847c3e3c-26fe-4c96-b770-18dafe66a87e","block_type":"box","text":"activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":473,"box":{"x":116,"y":612,"width":726,"height":12}},{"id":"bd45ddc6-a193-4b44-a687-e829139b41ab","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the","page_number":473,"box":{"x":117,"y":628,"width":732,"height":12}},{"id":"16f4d58d-3551-4f46-b689-2d78eb2284f0","block_type":"box","text":"current U.S. federal tax laws place substantial limitations on the size of such issues. The interest on","page_number":473,"box":{"x":116,"y":643,"width":745,"height":12}},{"id":"e5d8c329-415c-48a1-9dc0-d53d68a4ee60","block_type":"box","text":"Municipal Bonds may bear a fixed rate or be payable at a variable or floating rate. The two principal","page_number":473,"box":{"x":117,"y":659,"width":742,"height":12}},{"id":"43931b7e-a890-4f04-9dc2-760f52fe2ec5","block_type":"box","text":"classifications of Municipal Bonds are “general obligation” and “revenue” or “special obligation” bonds,","page_number":473,"box":{"x":116,"y":674,"width":756,"height":12}},{"id":"97a274eb-38b1-4ac1-bce6-58ac01dbdf50","block_type":"box","text":"which latter category includes private activity bonds (“PABs”) (or “industrial development bonds” under","page_number":473,"box":{"x":116,"y":690,"width":760,"height":12}},{"id":"082ae7e7-45fe-4262-af72-a856f03a4a32","block_type":"box","text":"pre-1986 law).","page_number":473,"box":{"x":117,"y":705,"width":105,"height":12}},{"id":"b0347e0c-5c2e-47fc-bd7d-9766c5853bd0","block_type":"box","text":"General Obligation Bonds.","page_number":473,"box":{"x":117,"y":738,"width":194,"height":12}},{"id":"0366b455-78cd-47b3-b792-22e2c1f594c8","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith,","page_number":473,"box":{"x":319,"y":738,"width":553,"height":12}},{"id":"13d5729d-afb3-46b5-bb0f-ec5b108d5c20","block_type":"box","text":"credit and taxing power for the payment of principal and interest. The taxing power of any","page_number":473,"box":{"x":116,"y":753,"width":663,"height":13}},{"id":"92694129-a58b-4b88-9c08-b04907c58141","block_type":"box","text":"governmental entity may be limited, however, by provisions of its state constitution or laws, and an","page_number":473,"box":{"x":116,"y":769,"width":729,"height":12}},{"id":"7db3d078-1184-4a85-8c20-ff9a3516aec6","block_type":"box","text":"entity’s creditworthiness will depend on many factors, including potential erosion of its tax base due to","page_number":473,"box":{"x":116,"y":784,"width":755,"height":13}},{"id":"40d9f979-6505-4af8-ac80-11781cc91751","block_type":"box","text":"population declines, natural disasters, declines in the state’s industrial base or inability to attract new","page_number":473,"box":{"x":117,"y":800,"width":745,"height":12}},{"id":"dfca2fe6-8e85-47b7-ba1c-a1dec636d88f","block_type":"box","text":"industries, economic limits on the ability to tax without eroding the tax base, state legislative proposals","page_number":473,"box":{"x":117,"y":816,"width":757,"height":12}},{"id":"4a3d0049-5d7a-41bc-b092-f844a71e7121","block_type":"box","text":"or voter initiatives to limit ad valorem real property taxes and the extent to which the entity relies on","page_number":473,"box":{"x":116,"y":831,"width":740,"height":12}},{"id":"55be9224-5a59-43f8-a4ac-0085cf99d638","block_type":"box","text":"federal or state aid, access to capital markets or other factors beyond the state’s or entity’s control.","page_number":473,"box":{"x":116,"y":846,"width":738,"height":13}},{"id":"c9ef29e5-6293-4e41-9246-eef6a0c0c784","block_type":"box","text":"Accordingly, the capacity of the issuer of a general obligation bond as to the timely payment of interest","page_number":473,"box":{"x":116,"y":862,"width":765,"height":12}},{"id":"8b9fb86f-856a-47b4-98b9-7b312c6c56e5","block_type":"box","text":"and the repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":473,"box":{"x":116,"y":877,"width":717,"height":13}},{"id":"cf00a4aa-d632-4436-8be5-ea84547c5eff","block_type":"box","text":"II-75","page_number":473,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"716324c0-bfdb-45ac-9478-f59923f73958","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":473,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"87d87dd4-5a52-4a5a-ad6d-c96695fda92f","block_type":"box","text":"Revenue Bonds.","page_number":474,"box":{"x":116,"y":87,"width":122,"height":10}},{"id":"2b6fda0f-e3d2-44e0-9703-087b72fe0497","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility","page_number":474,"box":{"x":240,"y":87,"width":634,"height":12}},{"id":"34107281-2e00-41d1-8b96-8a7cdc4863d4","block_type":"box","text":"or class of facilities or, in some cases, from the proceeds of a special excise tax or other specific","page_number":474,"box":{"x":116,"y":102,"width":720,"height":12}},{"id":"0aedbcc6-f8e3-4d02-a7af-f103c0f88480","block_type":"box","text":"revenue source such as payments from the user of the facility being financed; accordingly, the timely","page_number":474,"box":{"x":117,"y":118,"width":752,"height":12}},{"id":"7ffa5795-c0cb-4319-ac22-25bb090161c4","block_type":"box","text":"payment of interest and the repayment of principal in accordance with the terms of the revenue or","page_number":474,"box":{"x":117,"y":134,"width":729,"height":12}},{"id":"3ad5c298-3471-4068-bcf7-0b4ce883481f","block_type":"box","text":"special obligation bond is a function of the economic viability of such facility or such revenue source.","page_number":474,"box":{"x":116,"y":149,"width":749,"height":12}},{"id":"b0b8dc2d-f7ef-4ba0-bdc2-2fd0da24fa82","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi","page_number":474,"box":{"x":117,"y":180,"width":730,"height":12}},{"id":"715b49c3-3db7-483e-b0f6-c38e53acbf7e","block_type":"box","text":"family housing involve special risks in addition to those associated with municipal bonds generally,","page_number":474,"box":{"x":116,"y":196,"width":735,"height":12}},{"id":"1ec91a2c-5f2f-4cbd-8d7c-d7fefd158402","block_type":"box","text":"including that the underlying properties may not generate sufficient income to pay expenses and","page_number":474,"box":{"x":117,"y":211,"width":718,"height":12}},{"id":"ad833228-37ef-4501-8788-52782d24a56f","block_type":"box","text":"interest costs. Such bonds are generally non-recourse against the property owner, may be junior to the","page_number":474,"box":{"x":117,"y":227,"width":768,"height":12}},{"id":"a2ebed5d-cf0f-45d7-8aa1-700367ee3947","block_type":"box","text":"rights of others with an interest in the properties, may pay interest that changes based in part on the","page_number":474,"box":{"x":117,"y":242,"width":746,"height":12}},{"id":"16cefb61-c1e9-4557-b317-c08274f92198","block_type":"box","text":"financial performance of the property, may be prepayable without penalty and may be used to finance","page_number":474,"box":{"x":116,"y":258,"width":760,"height":12}},{"id":"d9c39a37-7019-437d-9797-9f833e975a32","block_type":"box","text":"the construction of housing developments which, until completed and rented, do not generate income","page_number":474,"box":{"x":116,"y":273,"width":757,"height":12}},{"id":"2a85d67c-cae8-4d51-a4e0-1945405b694e","block_type":"box","text":"to pay interest. Increases in interest rates payable on senior obligations may make it more difficult for","page_number":474,"box":{"x":116,"y":289,"width":755,"height":12}},{"id":"79f41351-e39e-41c2-ac95-fc3dda12d6ad","block_type":"box","text":"issuers to meet payment obligations on subordinated bonds.","page_number":474,"box":{"x":117,"y":304,"width":452,"height":12}},{"id":"7fdbe1ce-3bb8-4546-b831-4cf81c588aaf","block_type":"box","text":"PABs.","page_number":474,"box":{"x":116,"y":335,"width":45,"height":10}},{"id":"b5c39558-1d9b-4579-96bb-be2677b71992","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public","page_number":474,"box":{"x":162,"y":335,"width":666,"height":12}},{"id":"1ff11b2e-78e0-438e-b95b-f0cce9cb795a","block_type":"box","text":"authorities to provide funds, usually through a loan or lease arrangement, to a private entity for the","page_number":474,"box":{"x":116,"y":351,"width":735,"height":12}},{"id":"af5b21b3-185b-4cec-9da1-17ce9d73ca36","block_type":"box","text":"purpose of financing construction or improvement of a facility to be used by the entity. Such bonds are","page_number":474,"box":{"x":117,"y":366,"width":762,"height":12}},{"id":"1f700509-7ba9-4812-aed5-ea9364426ec1","block_type":"box","text":"secured primarily by revenues derived from loan repayments or lease payments due from the entity,","page_number":474,"box":{"x":116,"y":382,"width":747,"height":12}},{"id":"7e652bbd-b29e-4178-8937-543832f3af26","block_type":"box","text":"which may or may not be guaranteed by a parent company or otherwise secured. PABs generally are","page_number":474,"box":{"x":116,"y":397,"width":758,"height":12}},{"id":"1bd008c2-72f6-4756-9a36-972adeacd27f","block_type":"box","text":"not secured by a pledge of the taxing power of the issuer of such bonds. Therefore, an investor should","page_number":474,"box":{"x":117,"y":413,"width":764,"height":12}},{"id":"0d25ad8e-fbdc-4504-b6a2-154b7fed38b4","block_type":"box","text":"understand that repayment of such bonds generally depends on the revenues of a private entity and be","page_number":474,"box":{"x":117,"y":428,"width":771,"height":12}},{"id":"d609b70b-961c-46cb-9d68-c230c9ddfe3c","block_type":"box","text":"aware of the risks that such an investment may entail. The continued ability of an entity to generate","page_number":474,"box":{"x":116,"y":444,"width":741,"height":12}},{"id":"b90dba7d-eac2-4448-b4bd-387411103ab7","block_type":"box","text":"sufficient revenues for the payment of principal and interest on such bonds will be affected by many","page_number":474,"box":{"x":116,"y":459,"width":744,"height":12}},{"id":"8747fb95-8759-434f-9b48-81a36547d2cb","block_type":"box","text":"factors including the size of the entity, its capital structure, demand for its products or services,","page_number":474,"box":{"x":116,"y":475,"width":707,"height":12}},{"id":"d49e355e-3531-438c-b939-013c37bfc928","block_type":"box","text":"competition, general economic conditions, government regulation and the entity’s dependence on","page_number":474,"box":{"x":116,"y":490,"width":728,"height":12}},{"id":"3439f591-59e9-4c7e-a3ba-3e05d9e3a945","block_type":"box","text":"revenues for the operation of the particular facility being financed.","page_number":474,"box":{"x":117,"y":506,"width":491,"height":12}},{"id":"54db27c3-bbb5-400c-9704-96c383fa4572","block_type":"box","text":"Moral Obligation Bonds.","page_number":474,"box":{"x":116,"y":537,"width":178,"height":12}},{"id":"92c75c15-c782-423f-960c-e4ea5f256f46","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public","page_number":474,"box":{"x":295,"y":537,"width":534,"height":12}},{"id":"8e3d6cd7-0e38-4d18-ac0a-2bab7165efcf","block_type":"box","text":"authorities. If an issuer of moral obligation bonds is unable to meet its obligations, the repayment of","page_number":474,"box":{"x":116,"y":552,"width":742,"height":12}},{"id":"1e2d6bc8-2964-41a0-b553-59cbba17d051","block_type":"box","text":"such bonds becomes a moral commitment but not a legal obligation of the state or municipality that","page_number":474,"box":{"x":116,"y":568,"width":741,"height":12}},{"id":"0d98405b-ed64-4247-9f59-89caf9e7a4fe","block_type":"box","text":"created the special purpose public authority that issued the bonds.","page_number":474,"box":{"x":116,"y":583,"width":498,"height":12}},{"id":"9a33ed37-3dae-45ac-a603-b07e516eac3a","block_type":"box","text":"Municipal Notes.","page_number":474,"box":{"x":116,"y":614,"width":122,"height":12}},{"id":"11cac7bd-5cfa-4382-be9f-11cd5a758d2f","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim","page_number":474,"box":{"x":240,"y":614,"width":647,"height":12}},{"id":"d3ef3dce-0c7b-4f4e-995c-7ea50bc64be6","block_type":"box","text":"financing in anticipation of tax collection, bond sales or revenue receipts. If there is a shortfall in the","page_number":474,"box":{"x":116,"y":630,"width":742,"height":12}},{"id":"d477b02e-19b6-49ae-a686-465290643749","block_type":"box","text":"anticipated proceeds, repayment on the note may be delayed or the note may not be fully repaid, and a","page_number":474,"box":{"x":116,"y":645,"width":772,"height":12}},{"id":"88182be1-49c0-4a64-b22c-3d946f6fe492","block_type":"box","text":"Fund may lose money.","page_number":474,"box":{"x":117,"y":661,"width":167,"height":12}},{"id":"69e7e70b-964a-478d-8311-aed874fa8fde","block_type":"box","text":"Municipal Commercial Paper.","page_number":474,"box":{"x":116,"y":692,"width":218,"height":12}},{"id":"1c8d8efd-8f63-466c-be02-d4c2e8e3877b","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet","page_number":474,"box":{"x":341,"y":692,"width":528,"height":12}},{"id":"eb9dd159-bf04-4cdd-a47c-2c470b6047dd","block_type":"box","text":"short-term financing needs. The lack of security presents some risk of loss to a Fund since, in the","page_number":474,"box":{"x":116,"y":707,"width":723,"height":12}},{"id":"f8474b82-cd1e-4b4c-8363-c9a5187be195","block_type":"box","text":"event of an issuer’s bankruptcy, unsecured creditors are repaid only after the secured creditors out of","page_number":474,"box":{"x":116,"y":723,"width":753,"height":12}},{"id":"a79f77fe-1dbd-4ad4-938b-289eeefacc3d","block_type":"box","text":"the assets, if any, that remain.","page_number":474,"box":{"x":116,"y":738,"width":223,"height":12}},{"id":"e0b75cfd-295b-4c54-abba-d74b9edfaf3d","block_type":"box","text":"Municipal Lease Obligations.","page_number":474,"box":{"x":116,"y":769,"width":213,"height":12}},{"id":"d11d60ca-d0af-4e21-a4e6-4c3b9215b360","block_type":"box","text":"Also included within the general category of Municipal Bonds are","page_number":474,"box":{"x":335,"y":769,"width":481,"height":12}},{"id":"485abe83-2bf5-4d37-9115-67d11dda56ea","block_type":"box","text":"certificates of participation (“COPs”) issued by government authorities or entities to finance the","page_number":474,"box":{"x":116,"y":785,"width":701,"height":12}},{"id":"13ad1667-f859-4fe2-8b40-2bc0fe595d7c","block_type":"box","text":"acquisition or construction of equipment, land and/or facilities. The COPs represent participations in a","page_number":474,"box":{"x":116,"y":800,"width":753,"height":12}},{"id":"a8197225-06fe-4304-8933-ac0545560901","block_type":"box","text":"lease, an installment purchase contract or a conditional sales contract (hereinafter collectively called","page_number":474,"box":{"x":117,"y":816,"width":742,"height":12}},{"id":"83a0c918-eaf7-4891-9cbc-e4cd3160d252","block_type":"box","text":"“lease obligations”) relating to such equipment, land or facilities. Municipal leases, like other municipal","page_number":474,"box":{"x":116,"y":831,"width":761,"height":12}},{"id":"5412dae5-83bf-4d8a-a1bc-30b8771f9c35","block_type":"box","text":"debt obligations, are subject to the risk of non-payment. Although lease obligations do not constitute","page_number":474,"box":{"x":116,"y":847,"width":747,"height":12}},{"id":"edabbcc6-c437-4a97-9a26-faae6ff3be72","block_type":"box","text":"general obligations of the issuer for which the issuer’s unlimited taxing power is pledged, a lease","page_number":474,"box":{"x":116,"y":862,"width":721,"height":12}},{"id":"959d92f8-f60e-428e-82fa-eb9c2f55c31f","block_type":"box","text":"obligation is frequently backed by the issuer’s covenant to budget for, appropriate and make the","page_number":474,"box":{"x":116,"y":878,"width":716,"height":12}},{"id":"4eda0d7e-ef6e-4fa3-9691-8e7f97eeb399","block_type":"box","text":"II-76","page_number":474,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"5d72de03-f7d0-4745-84db-bbd68a5446de","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":474,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2adc459f-b83f-4ed7-8ca6-305c9683c65b","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain","page_number":475,"box":{"x":117,"y":87,"width":631,"height":12}},{"id":"5410ac7c-9e5d-4833-a081-4d37ae28d800","block_type":"box","text":"“non-appropriation” clauses, which provide that the issuer has no obligation to make lease or","page_number":475,"box":{"x":116,"y":102,"width":693,"height":13}},{"id":"25a1c1d9-7f30-4e1f-ba8b-a44955925711","block_type":"box","text":"installment purchase payments in future years unless money is appropriated for such purpose on a","page_number":475,"box":{"x":117,"y":118,"width":739,"height":12}},{"id":"5b6673fe-49a5-48bf-8338-afc709b5bda2","block_type":"box","text":"yearly basis. Although “non-appropriation” lease obligations are secured by the leased property,","page_number":475,"box":{"x":116,"y":134,"width":716,"height":12}},{"id":"4078c0ed-81dd-4cc1-9091-4bd69dda9b37","block_type":"box","text":"disposition of the property in the event of foreclosure might prove difficult. These securities represent a","page_number":475,"box":{"x":116,"y":149,"width":767,"height":12}},{"id":"d5b79eb9-0767-4aae-9ee1-6a19b8ad7915","block_type":"box","text":"type of financing that has not yet developed the depth of marketability associated with more","page_number":475,"box":{"x":116,"y":165,"width":685,"height":12}},{"id":"5cb0bfca-c01b-4fb7-89bc-6fb85fa27364","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":475,"box":{"x":116,"y":180,"width":596,"height":12}},{"id":"d499f6f9-7be5-4146-848a-72f946e292ef","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in","page_number":475,"box":{"x":116,"y":207,"width":769,"height":12}},{"id":"8545000b-abc6-475f-9f00-e2b2957cea75","block_type":"box","text":"general economic downturns and as relative governmental cost burdens are allocated and reallocated","page_number":475,"box":{"x":116,"y":223,"width":762,"height":12}},{"id":"31ad254f-b71c-42a6-83b1-753cb2186ce7","block_type":"box","text":"among federal, state and local governmental units. Such non-payment would result in a reduction of","page_number":475,"box":{"x":116,"y":238,"width":746,"height":12}},{"id":"a89d6912-4c52-493c-b9a8-b97cb273b2e2","block_type":"box","text":"income to a Fund, and could result in a reduction in the value of the municipal lease experiencing","page_number":475,"box":{"x":117,"y":254,"width":726,"height":12}},{"id":"ea518361-e8ff-4ec6-92d7-3f5d7bae2441","block_type":"box","text":"non-payment and a potential decrease in the NAV of a Fund. Issuers of municipal securities might","page_number":475,"box":{"x":117,"y":269,"width":731,"height":12}},{"id":"5781de73-8ba2-4280-a166-3be5e44646e2","block_type":"box","text":"seek protection under the bankruptcy laws. In the event of bankruptcy of such an issuer, a Fund could","page_number":475,"box":{"x":116,"y":285,"width":762,"height":12}},{"id":"64d5448b-12e7-4c0f-bee8-f5a6dfa6aec0","block_type":"box","text":"experience delays and limitations with respect to the collection of principal and interest on such","page_number":475,"box":{"x":116,"y":300,"width":711,"height":12}},{"id":"46a869db-d8d8-4d5f-b42c-f6fffa7faea5","block_type":"box","text":"municipal leases and a Fund may not, in all circumstances, be able to collect all principal and interest","page_number":475,"box":{"x":117,"y":316,"width":755,"height":12}},{"id":"39dbbc25-39e6-4e69-ae15-dcc4d1ac523d","block_type":"box","text":"to which it is entitled. To enforce its rights in the event of a default in lease payments, a Fund might","page_number":475,"box":{"x":116,"y":331,"width":740,"height":12}},{"id":"8e7d5fb3-81c9-48a3-b98e-74423ef276b5","block_type":"box","text":"take possession of and manage the assets securing the issuer’s obligations on such securities, which","page_number":475,"box":{"x":116,"y":347,"width":758,"height":12}},{"id":"231cf39d-248f-4540-aeb3-0c19faeaba62","block_type":"box","text":"may increase a Fund’s operating expenses and adversely affect the NAV of a Fund. When the lease","page_number":475,"box":{"x":117,"y":362,"width":749,"height":12}},{"id":"08a729cc-37b2-4440-b4d3-c63e7b124d40","block_type":"box","text":"contains a non-appropriation clause, however, the failure to pay would not be a default and a Fund","page_number":475,"box":{"x":116,"y":378,"width":737,"height":12}},{"id":"f0183606-3ca2-4b51-a83d-682df00ee264","block_type":"box","text":"would not have the right to take possession of the assets. Any income derived from a Fund’s","page_number":475,"box":{"x":116,"y":393,"width":692,"height":12}},{"id":"ea4ddcdf-a9b8-406a-b47d-f44c8346007e","block_type":"box","text":"ownership or operation of such assets may not be tax-exempt. In addition, a Fund’s intention to qualify","page_number":475,"box":{"x":116,"y":409,"width":765,"height":12}},{"id":"3cdc8e04-8d44-442f-890b-83d8a69b340f","block_type":"box","text":"as a “regulated investment company” under the Code, may limit the extent to which a Fund may","page_number":475,"box":{"x":116,"y":424,"width":717,"height":12}},{"id":"bce266d1-006c-4284-a105-12af3d6cc1c5","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a","page_number":475,"box":{"x":116,"y":440,"width":765,"height":12}},{"id":"c6090591-7f9e-43a7-acbb-281d7f7b43d5","block_type":"box","text":"Fund is subject to certain limitations on its investments and on the nature of its income.","page_number":475,"box":{"x":117,"y":455,"width":650,"height":12}},{"id":"91653eaa-5151-428e-ba9c-5bb4aeb345c5","block_type":"box","text":"Tender Option Bonds.","page_number":475,"box":{"x":118,"y":482,"width":161,"height":12}},{"id":"08e8cb60-377b-4a48-a9bc-17a5eaa406ab","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option","page_number":475,"box":{"x":280,"y":482,"width":596,"height":12}},{"id":"1c2b15c4-076a-462a-83a6-3588a7e49eca","block_type":"box","text":"bonds (“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in","page_number":475,"box":{"x":117,"y":498,"width":736,"height":12}},{"id":"12fe7f30-bbf5-4e94-a09b-f1197ef004ad","block_type":"box","text":"which the Funds will invest pay interest or income that, in the opinion of counsel to the issuer, is","page_number":475,"box":{"x":116,"y":513,"width":715,"height":12}},{"id":"49b28c2d-9883-489a-8615-a211a57556da","block_type":"box","text":"exempt from regular U.S. federal income tax. BlackRock will not conduct its own analysis of the tax","page_number":475,"box":{"x":116,"y":529,"width":740,"height":12}},{"id":"db3cd4ae-9122-4020-ab19-674188f39614","block_type":"box","text":"status of the interest or income paid by TOB Residuals held by the Funds, but will rely on the opinion of","page_number":475,"box":{"x":116,"y":544,"width":772,"height":12}},{"id":"6a30002a-5f66-4d7a-8600-6a91f6e30132","block_type":"box","text":"counsel to the issuer. Although volatile, TOB Residuals typically offer the potential for yields exceeding","page_number":475,"box":{"x":116,"y":560,"width":767,"height":12}},{"id":"a91cce88-6fe3-4848-9c10-0b09e029ce53","block_type":"box","text":"the yields available on fixed rate Municipal Bonds with comparable credit quality. The Funds may","page_number":475,"box":{"x":116,"y":575,"width":724,"height":12}},{"id":"8f55cb32-07ac-40d0-84f4-9ae3a4c71b07","block_type":"box","text":"invest in TOB Residuals for the purpose of using economic leverage.","page_number":475,"box":{"x":117,"y":591,"width":515,"height":12}},{"id":"4fe112c4-56b0-4b9f-a218-f1ff6bb8f875","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of","page_number":475,"box":{"x":116,"y":618,"width":723,"height":12}},{"id":"ce3fedde-e1bb-451a-a498-df8966c8fce4","block_type":"box","text":"holding Municipal Bonds contributed by one or more funds (a “TOB Trust”). A TOB Trust typically","page_number":475,"box":{"x":117,"y":634,"width":724,"height":12}},{"id":"7067dd2a-6048-4045-9c1f-5a3cd6b41d5c","block_type":"box","text":"issues two classes of beneficial interests: short-term floating rate interests (“TOB Floaters”), which are","page_number":475,"box":{"x":117,"y":649,"width":762,"height":12}},{"id":"e912190a-3dfb-4bca-81a3-c2fcf7167457","block_type":"box","text":"sold to third-party investors, and TOB Residuals, which are generally issued to the fund(s) that","page_number":475,"box":{"x":116,"y":665,"width":701,"height":12}},{"id":"9c63a0cf-bc92-4b80-bc04-ec9003d270d2","block_type":"box","text":"transferred Municipal Bonds to the TOB Trust. The Funds may invest in both TOB Floaters and TOB","page_number":475,"box":{"x":116,"y":680,"width":745,"height":12}},{"id":"f4c6688a-e83f-440a-9735-5fa8d7656bb3","block_type":"box","text":"Residuals. TOB Floaters may have first priority on the cash flow from the Municipal Bonds held by the","page_number":475,"box":{"x":117,"y":696,"width":754,"height":12}},{"id":"5b814862-4f5a-4d66-ab51-d428d526632e","block_type":"box","text":"TOB Trust and are enhanced with a liquidity support arrangement from a third-party Liquidity Provider","page_number":475,"box":{"x":116,"y":711,"width":755,"height":12}},{"id":"bb625000-7057-4307-841f-2c343741505b","block_type":"box","text":"(defined below) which allows holders to tender their position at par (plus accrued interest). A Fund, as","page_number":475,"box":{"x":117,"y":727,"width":753,"height":12}},{"id":"7a6bbbf6-92e6-40f3-b4a0-1a38a16139e7","block_type":"box","text":"a holder of TOB Residuals, is paid the residual cash flow from the TOB Trust. A Fund that contributes","page_number":475,"box":{"x":116,"y":742,"width":753,"height":12}},{"id":"2d299fe3-2ede-49af-a19c-e470c414b045","block_type":"box","text":"the Municipal Bonds to the TOB Trust is paid the cash received by the TOB Trust from the sale of the","page_number":475,"box":{"x":116,"y":758,"width":752,"height":12}},{"id":"1bf491fe-784d-40f1-a0f2-404471753fa8","block_type":"box","text":"TOB Floaters, less certain transaction costs, and typically will invest the cash to purchase additional","page_number":475,"box":{"x":116,"y":773,"width":741,"height":12}},{"id":"ba659d81-6099-4d23-89f5-4a45505c9732","block_type":"box","text":"Municipal Bonds or other investments permitted by its investment policies. If a Fund ever purchases all","page_number":475,"box":{"x":117,"y":789,"width":761,"height":12}},{"id":"8ad09149-d1f6-4e98-80f6-e48c1dc7ca81","block_type":"box","text":"or a portion of the TOB Floaters sold by the TOB Trust, it may surrender those TOB Floaters together","page_number":475,"box":{"x":116,"y":804,"width":754,"height":12}},{"id":"03e9b6c8-18fe-4eef-9046-9b21693910d5","block_type":"box","text":"with a proportionate amount of TOB Residuals to the TOB Trust in exchange for a proportionate","page_number":475,"box":{"x":116,"y":820,"width":711,"height":12}},{"id":"f379156b-5717-4422-badb-9fe4104b8d43","block_type":"box","text":"amount of the Municipal Bonds owned by the TOB Trust.","page_number":475,"box":{"x":116,"y":835,"width":427,"height":12}},{"id":"2c517d70-8f0a-49e9-b01b-9f5c61c60b84","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has","page_number":475,"box":{"x":116,"y":862,"width":767,"height":12}},{"id":"27a3ac49-95fb-43c5-820e-19f42d3d8d52","block_type":"box","text":"contributed Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust,","page_number":475,"box":{"x":116,"y":878,"width":752,"height":12}},{"id":"1df2e24a-0cb1-4dbe-8104-c7f1a6347079","block_type":"box","text":"II-77","page_number":475,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"b14e3841-fc45-4173-a2bf-7efc173f35e8","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":475,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"16632ca6-3af4-473e-beb6-b346a4d16ff3","block_type":"box","text":"the economic rights and obligations under the TOB Residual will generally be shared among the funds","page_number":476,"box":{"x":116,"y":87,"width":764,"height":12}},{"id":"96f57d20-1ef1-4a45-9286-c9ce625bcbf9","block_type":"box","text":"ratably in proportion to their participation in the TOB Trust.","page_number":476,"box":{"x":117,"y":102,"width":437,"height":13}},{"id":"17ef3531-7d78-4432-91ed-44c34dd3f538","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain","page_number":476,"box":{"x":116,"y":134,"width":747,"height":12}},{"id":"1d4f3d9e-283d-404d-af76-d009805e6875","block_type":"box","text":"cases, when Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction","page_number":476,"box":{"x":116,"y":149,"width":764,"height":12}},{"id":"3f18c772-d735-4643-87b6-e3c6dc6c5b28","block_type":"box","text":"includes a credit enhancement feature that provides for the timely payment of principal and interest on","page_number":476,"box":{"x":117,"y":165,"width":762,"height":12}},{"id":"b3b38306-be0d-4bc9-95ee-0fe9270ad0d4","block_type":"box","text":"the bonds to the TOB Trust by a credit enhancement provider. The TOB Trust would be responsible for","page_number":476,"box":{"x":116,"y":180,"width":770,"height":12}},{"id":"7a43925d-66eb-4086-b326-03a6e9975f80","block_type":"box","text":"the payment of the credit enhancement fee and a Fund, as a TOB Residual holder, would be","page_number":476,"box":{"x":116,"y":196,"width":693,"height":12}},{"id":"72cdb114-5a6c-47b2-a649-85c313618f26","block_type":"box","text":"responsible for reimbursement of any payments of principal and interest made by the credit","page_number":476,"box":{"x":117,"y":211,"width":681,"height":12}},{"id":"230f0ddc-6c4f-4f0a-a2ff-a0ca1b9b2dec","block_type":"box","text":"enhancement provider.","page_number":476,"box":{"x":116,"y":227,"width":176,"height":11}},{"id":"d96c0243-8b95-4df9-b3ec-09927f85b17b","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a","page_number":476,"box":{"x":116,"y":258,"width":760,"height":12}},{"id":"a09af2bf-b3e4-4497-a959-5d19b2e6671b","block_type":"box","text":"proportional share of the TOB Floaters to tender their notes to the TOB Trust at par plus accrued","page_number":476,"box":{"x":117,"y":273,"width":722,"height":12}},{"id":"9e2998f8-b95e-45ec-a11a-4a86a46e79e5","block_type":"box","text":"interest. Thereafter, the Fund may withdraw a corresponding share of the Municipal Bonds from the","page_number":476,"box":{"x":117,"y":289,"width":743,"height":12}},{"id":"9dc25a70-7287-4556-adeb-cdd71ffffcc2","block_type":"box","text":"TOB Trust. This transaction, in effect, creates exposure for the Fund to the entire return of the","page_number":476,"box":{"x":116,"y":304,"width":702,"height":12}},{"id":"5da29590-0be0-4bcb-903b-3fc54d4f3cc4","block_type":"box","text":"Municipal Bonds in the TOB Trust, with a net cash investment by the Fund that is less than the value of","page_number":476,"box":{"x":117,"y":320,"width":770,"height":12}},{"id":"f2b4305f-ea7d-4790-a9b9-c0e6dff2a7ab","block_type":"box","text":"the Municipal Bonds in the TOB Trust. This multiplies the positive or negative impact of the Municipal","page_number":476,"box":{"x":116,"y":335,"width":755,"height":12}},{"id":"8405d1b2-55d4-44f6-ad9f-8d02f92771e5","block_type":"box","text":"Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust depends","page_number":476,"box":{"x":117,"y":351,"width":749,"height":12}},{"id":"9dab985d-bc5f-408a-a296-aa903f5e9b0a","block_type":"box","text":"on the value of the Municipal Bonds deposited in the TOB Trust relative to the value of the TOB","page_number":476,"box":{"x":116,"y":366,"width":714,"height":12}},{"id":"ce07c0c5-d76d-4452-851e-6dae1073946b","block_type":"box","text":"Floaters it issues.","page_number":476,"box":{"x":117,"y":382,"width":134,"height":9}},{"id":"ddae60d7-363f-4283-b172-2046ff28e947","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly","page_number":476,"box":{"x":116,"y":413,"width":762,"height":12}},{"id":"d5aa0ebf-566a-4861-929e-634b780841f6","block_type":"box","text":"leveraged if the principal amount of the TOB Floaters issued by the related TOB Trust exceeds 75% of","page_number":476,"box":{"x":117,"y":428,"width":765,"height":12}},{"id":"759555ec-b987-480f-a324-95cc23888366","block_type":"box","text":"the principal amount of the Municipal Bonds owned by the TOB Trust.","page_number":476,"box":{"x":116,"y":444,"width":523,"height":12}},{"id":"a3e8a5a5-32fe-4892-830c-60f96384b57e","block_type":"box","text":"The TOB Trust may be collapsed without the consent of a Fund upon the occurrence of tender option","page_number":476,"box":{"x":116,"y":475,"width":757,"height":12}},{"id":"3b508823-6f5e-4e58-a329-9037d2eb0aa5","block_type":"box","text":"termination events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust","page_number":476,"box":{"x":116,"y":490,"width":768,"height":12}},{"id":"1ab421ef-6c6c-4ff0-8344-4b8ef6baa35d","block_type":"box","text":"agreements. TOTEs include the bankruptcy or default of the issuer of the Municipal Bonds held in the","page_number":476,"box":{"x":116,"y":506,"width":758,"height":12}},{"id":"3837a3a8-a2f3-433a-b962-d6430bebc91f","block_type":"box","text":"TOB Trust, a substantial downgrade in the credit quality of the issuer of the Municipal Bonds held in","page_number":476,"box":{"x":116,"y":521,"width":744,"height":12}},{"id":"9adb3d15-8cd4-48c0-bada-ae08d2afbe7f","block_type":"box","text":"the TOB Trust, failure of any scheduled payment of principal or interest on the Municipal Bonds, and a","page_number":476,"box":{"x":116,"y":537,"width":763,"height":12}},{"id":"00ef8d6f-148b-4f96-b181-76b0fa149902","block_type":"box","text":"judgment or ruling that interest on the Municipal Bonds is subject to U.S. federal income taxation.","page_number":476,"box":{"x":115,"y":552,"width":727,"height":12}},{"id":"e939152b-a81f-43f8-bc63-bb2137bce89a","block_type":"box","text":"MTEs may include, among other things, a failed remarketing of the TOB Floaters, the inability of the","page_number":476,"box":{"x":117,"y":568,"width":745,"height":12}},{"id":"c637deb6-6577-4357-afd7-3ce62c02bcd9","block_type":"box","text":"TOB Trust to obtain renewal of the liquidity support agreement, and a substantial decline in the market","page_number":476,"box":{"x":116,"y":583,"width":765,"height":12}},{"id":"15d5b7b2-2461-4a99-bbe9-bdd220c4c3da","block_type":"box","text":"value of the Municipal Bonds held in the TOB Trust. Upon the occurrence of a TOTE or an MTE, a","page_number":476,"box":{"x":116,"y":599,"width":734,"height":12}},{"id":"819ae5ed-5dfb-4bff-b13b-3060402e891c","block_type":"box","text":"TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee","page_number":476,"box":{"x":116,"y":614,"width":758,"height":12}},{"id":"5c978831-d6b1-4067-bab4-51cdd8c16713","block_type":"box","text":"of the TOB Trust, the remarketing agent of the TOB Floaters and the Liquidity Provider (defined","page_number":476,"box":{"x":116,"y":630,"width":714,"height":12}},{"id":"b3bd32b0-1a83-4805-b088-5678602c22d0","block_type":"box","text":"below). In the case of an MTE, after the payment of fees, the holders of the TOB Floaters would be","page_number":476,"box":{"x":117,"y":645,"width":739,"height":12}},{"id":"cd4475f9-d307-4ee9-af99-d6e48a68eb6c","block_type":"box","text":"paid senior to the TOB Residual holders (","page_number":476,"box":{"x":117,"y":661,"width":307,"height":12}},{"id":"30986fe6-bcfd-4850-85a1-4e8989a87f5d","block_type":"box","text":"i.e.","page_number":476,"box":{"x":425,"y":661,"width":20,"height":9}},{"id":"33c63c97-fc45-4751-9dc1-13a98f3c872d","block_type":"box","text":", the Fund). In contrast, in the case of a TOTE, after","page_number":476,"box":{"x":448,"y":661,"width":385,"height":12}},{"id":"f8e4de73-94cf-4293-8853-2bb6d0e000c5","block_type":"box","text":"payment of fees, the holders of TOB Floaters and the TOB Residual holders would be paid pro rata in","page_number":476,"box":{"x":117,"y":676,"width":753,"height":12}},{"id":"7834d79e-5aca-4230-90db-3437c28d940b","block_type":"box","text":"proportion to the respective face values of their certificates.","page_number":476,"box":{"x":117,"y":692,"width":437,"height":12}},{"id":"32293eb1-c7a4-402b-8095-55809fe01f58","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically","page_number":476,"box":{"x":116,"y":723,"width":764,"height":12}},{"id":"ab4c31b7-ac8d-4469-aa46-c0c1bdba2ee1","block_type":"box","text":"supported by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity","page_number":476,"box":{"x":116,"y":738,"width":761,"height":12}},{"id":"c9772ff8-6b69-4760-90b3-d443a6640153","block_type":"box","text":"Provider”) that allows the holders of the TOB Floaters to tender their TOB Floaters in exchange for","page_number":476,"box":{"x":117,"y":754,"width":730,"height":12}},{"id":"a35201e2-4f5f-4207-a335-97b28d8fe4db","block_type":"box","text":"payment of par plus accrued interest on any business day (subject to the non-occurrence of a TOTE","page_number":476,"box":{"x":117,"y":769,"width":743,"height":12}},{"id":"93751acd-4d9c-4cce-aaeb-9183702ec86c","block_type":"box","text":"described above). Depending on the structure of the TOB Trust, the Liquidity Provider may purchase","page_number":476,"box":{"x":116,"y":785,"width":747,"height":12}},{"id":"7a0fea6a-23cc-4344-ab50-a4141219bcd9","block_type":"box","text":"the tendered TOB Floaters, or the TOB Trust may draw upon a loan from the Liquidity Provider to","page_number":476,"box":{"x":116,"y":800,"width":723,"height":12}},{"id":"13b10b1d-ac59-4ec7-a9fc-6a1e07ad001d","block_type":"box","text":"purchase the tendered TOB Floaters.","page_number":476,"box":{"x":117,"y":816,"width":275,"height":12}},{"id":"be485b8a-1b67-4c5f-998e-4e447c1a5add","block_type":"box","text":"When a Fund invests in TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to","page_number":476,"box":{"x":116,"y":847,"width":758,"height":12}},{"id":"16b17d1c-f8b3-4647-99cb-ca21a613f59f","block_type":"box","text":"make a payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion","page_number":476,"box":{"x":117,"y":862,"width":753,"height":12}},{"id":"3165032a-f6f5-4a6a-8352-763b27017de7","block_type":"box","text":"of the Municipal Bonds held in the TOB Trust and then fund the balance, if any, of the amount owed","page_number":476,"box":{"x":116,"y":878,"width":746,"height":12}},{"id":"9730cd64-ae73-4a2b-b95f-bc39d7331cbd","block_type":"box","text":"II-78","page_number":476,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"21a6f43e-9c03-4c1e-89a8-4473feb229b3","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":476,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4f2eae15-ec41-4b47-aaa5-ae225567b91d","block_type":"box","text":"under the liquidity facility over the liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in","page_number":477,"box":{"x":117,"y":87,"width":760,"height":12}},{"id":"39a5efc3-4013-40f5-bdb0-8b4620b741c9","block_type":"box","text":"a TOB Trust on a recourse basis, it will typically enter into a reimbursement agreement with the","page_number":477,"box":{"x":116,"y":102,"width":712,"height":13}},{"id":"407f67da-e719-4922-8ba0-964946f2b215","block_type":"box","text":"Liquidity Provider pursuant to which the Fund is required to reimburse the Liquidity Provider the","page_number":477,"box":{"x":117,"y":118,"width":712,"height":12}},{"id":"4ec2d13f-44ee-4464-9ada-532c01c286f1","block_type":"box","text":"amount of any Liquidation Shortfall. As a result, if the Fund invests in a recourse TOB Trust, the Fund","page_number":477,"box":{"x":116,"y":134,"width":759,"height":12}},{"id":"5b57b61f-2609-4b56-bbb1-e7075a4e2dc1","block_type":"box","text":"will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised funds","page_number":477,"box":{"x":116,"y":149,"width":751,"height":12}},{"id":"44128746-6d54-4f25-ab2e-766b5946ac81","block_type":"box","text":"participate in any such TOB Trust, these losses will be shared ratably, in proportion to their","page_number":477,"box":{"x":117,"y":165,"width":678,"height":12}},{"id":"47cc993c-46ce-421d-930f-3b54cb002336","block_type":"box","text":"participation in the TOB Trust.","page_number":477,"box":{"x":117,"y":180,"width":227,"height":12}},{"id":"e9c4699d-89b0-44d3-b3f5-03047166bc61","block_type":"box","text":"Under accounting rules, Municipal Bonds of a Fund that are deposited into a TOB Trust are","page_number":477,"box":{"x":117,"y":211,"width":682,"height":12}},{"id":"1a3a1963-1ff3-4e41-a113-288bd86edaeb","block_type":"box","text":"investments of the Fund and are presented on the Fund’s Schedule of Investments and outstanding","page_number":477,"box":{"x":117,"y":227,"width":745,"height":12}},{"id":"364bab0a-9983-42ad-8164-85bb84c6f107","block_type":"box","text":"TOB Floaters issued by a TOB Trust are presented as liabilities in the Fund’s Statement of Assets and","page_number":477,"box":{"x":116,"y":242,"width":765,"height":12}},{"id":"bfdf5e6f-12ae-4dc8-9b44-880c466de1c6","block_type":"box","text":"Liabilities. Interest income from the underlying Municipal Bonds is recorded by a Fund on an accrual","page_number":477,"box":{"x":117,"y":258,"width":747,"height":12}},{"id":"09660c91-e3de-4cb5-b9a5-3ed3a1512d54","block_type":"box","text":"basis. Interest expense incurred on the","page_number":477,"box":{"x":117,"y":273,"width":288,"height":12}},{"id":"1e565a67-9881-4f68-898b-1101c9593c2f","block_type":"box","text":"TOB Floaters and other expenses related to remarketing,","page_number":477,"box":{"x":409,"y":273,"width":430,"height":12}},{"id":"6f8ba27a-4412-45c0-b869-338119d0343a","block_type":"box","text":"administration, trustee and other services to a TOB Trust are reported as expenses of a Fund. In","page_number":477,"box":{"x":116,"y":289,"width":722,"height":12}},{"id":"1995b427-82b7-4d8b-8e8b-19bf41898cd8","block_type":"box","text":"addition, under accounting rules, loans made to a TOB Trust sponsored by a Fund may be presented","page_number":477,"box":{"x":116,"y":304,"width":757,"height":12}},{"id":"1b368e57-abdd-4404-a5ac-8664296a26a0","block_type":"box","text":"as loans of the Fund in the Fund’s financial statements even if there is no recourse to the Fund’s","page_number":477,"box":{"x":116,"y":320,"width":721,"height":9}},{"id":"231f7a40-cde8-426a-a8e2-ce5bbf3f1d13","block_type":"box","text":"assets.","page_number":477,"box":{"x":116,"y":335,"width":58,"height":10}},{"id":"0eb654e6-3e0c-434e-a9cd-30ca6f583f85","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal","page_number":477,"box":{"x":117,"y":366,"width":765,"height":12}},{"id":"362b86c6-508c-48a0-8416-fce0444d3fed","block_type":"box","text":"Bonds with maturities or remarketing provisions that are comparable in duration to the periodic interval","page_number":477,"box":{"x":117,"y":382,"width":764,"height":12}},{"id":"f207c409-d8ce-4f76-88fc-845442c7045b","block_type":"box","text":"of the tender option. Since the tender option feature has a shorter term than the final maturity or first","page_number":477,"box":{"x":116,"y":397,"width":748,"height":12}},{"id":"919a7ff1-184d-4435-87e3-5e946afc2a4d","block_type":"box","text":"call date of the underlying Municipal Bonds deposited in the TOB Trust, the holder of the TOB Floaters","page_number":477,"box":{"x":116,"y":413,"width":766,"height":12}},{"id":"986e66e8-d031-4490-b21b-1ca5e6136aed","block_type":"box","text":"relies upon the terms of the agreement with the financial institution furnishing the liquidity facility as","page_number":477,"box":{"x":117,"y":428,"width":738,"height":12}},{"id":"c7f056c7-8907-44a7-bec8-760d68f2182a","block_type":"box","text":"well as the credit strength of that institution. The risk associated with TOB Floaters, however, may be","page_number":477,"box":{"x":116,"y":444,"width":754,"height":12}},{"id":"6ffe24ca-2cbc-402a-a89a-44fc49b9799c","block_type":"box","text":"increased in the current market environment as a result of recent downgrades to the credit ratings, and","page_number":477,"box":{"x":117,"y":459,"width":767,"height":12}},{"id":"57ad87cc-18a1-4c07-888a-7aedd6a6f818","block_type":"box","text":"thus the perceived reliability and creditworthiness, of many major financial institutions, some of which","page_number":477,"box":{"x":116,"y":475,"width":755,"height":12}},{"id":"e7cafb9f-a156-44e8-aa66-e5c41ea5e91c","block_type":"box","text":"sponsor and/or provide liquidity support to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":477,"box":{"x":116,"y":490,"width":763,"height":12}},{"id":"e5690378-8136-4b34-8380-14cce1c91d74","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":477,"box":{"x":117,"y":506,"width":633,"height":12}},{"id":"3e07e3ff-d69f-484f-86eb-3f0f2c96d34e","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions,","page_number":477,"box":{"x":117,"y":537,"width":743,"height":12}},{"id":"263ad3dd-86b8-4c3c-a5fc-91eaa394e12f","block_type":"box","text":"reverse repurchase agreements and similar financing transactions (e.g., borrowed bonds)","page_number":477,"box":{"x":117,"y":552,"width":670,"height":12}},{"id":"2ccf1749-e808-4ca9-9238-aae839bf4f22","block_type":"box","text":"notwithstanding the limitation on the issuance of senior securities in Section 18 of the Investment","page_number":477,"box":{"x":117,"y":568,"width":723,"height":12}},{"id":"55e0b04a-7557-4ad9-be53-64d6850ccd6e","block_type":"box","text":"Company Act, provided that the Fund either (i) complies with the 300% asset coverage ratio with","page_number":477,"box":{"x":117,"y":583,"width":721,"height":12}},{"id":"55ba8fa5-f1a1-49c3-acfe-ba2b28022062","block_type":"box","text":"respect to such transactions and any other borrowings in the aggregate, or (ii) treats such transactions","page_number":477,"box":{"x":117,"y":599,"width":764,"height":12}},{"id":"295b1e01-4780-4305-817f-4e2213895c2d","block_type":"box","text":"as Derivatives Transactions under Rule 18f-4. See “— Derivatives — Regulation of Derivatives —","page_number":477,"box":{"x":116,"y":614,"width":730,"height":12}},{"id":"5ac54c93-0f3f-475f-9540-c47835cb73ce","block_type":"box","text":"Rule 18f-4 under the Investment Company Act” above.","page_number":477,"box":{"x":117,"y":630,"width":411,"height":12}},{"id":"0fa36e22-2d70-4ed1-858c-0447f23510be","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":477,"box":{"x":116,"y":661,"width":295,"height":12}},{"id":"530b6269-7aac-4962-88c8-aae7fd5309d5","block_type":"box","text":"In response to the restrictions imposed by section 619 of the","page_number":477,"box":{"x":419,"y":661,"width":447,"height":12}},{"id":"401b7d2e-9340-4b77-8afc-1acfeb383a05","block_type":"box","text":"Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Volcker Rule”), market participants","page_number":477,"box":{"x":117,"y":676,"width":761,"height":12}},{"id":"76f8c0d6-a34b-4b81-9ad3-5c76e487633a","block_type":"box","text":"have developed a structure for TOB Trusts designed to ensure that no banking entity is sponsoring the","page_number":477,"box":{"x":117,"y":692,"width":761,"height":12}},{"id":"d3920554-7de1-492f-8dea-4019fb31abd8","block_type":"box","text":"TOB Trust for purposes of the Volcker Rule. Specifically, a Fund will establish, structure and “sponsor”","page_number":477,"box":{"x":116,"y":707,"width":760,"height":12}},{"id":"d8f33dd1-60b0-4fbd-bba6-08f757d74aa4","block_type":"box","text":"the TOB Trusts in which it holds TOB Residuals. In such a structure, certain responsibilities that","page_number":477,"box":{"x":116,"y":723,"width":711,"height":12}},{"id":"801bda7b-003c-442b-a934-5f3a10ddba48","block_type":"box","text":"previously belonged to the sponsor bank will be performed by, or on behalf of, a Fund. A Fund may","page_number":477,"box":{"x":117,"y":738,"width":735,"height":12}},{"id":"65b23c97-fa30-43ce-a1b9-b576fc07603c","block_type":"box","text":"utilize service providers in meeting these responsibilities. It is possible that regulators could take","page_number":477,"box":{"x":117,"y":754,"width":712,"height":12}},{"id":"01fc9305-ad09-49ca-b465-579688c022b8","block_type":"box","text":"positions that could limit the market for such structured TOB Trust transactions or a Fund’s ability to","page_number":477,"box":{"x":117,"y":769,"width":738,"height":12}},{"id":"55b07550-0a71-417c-8dd8-097c40e5c061","block_type":"box","text":"hold TOB Residuals. Under this TOB Trust structure, a Fund has certain additional duties and","page_number":477,"box":{"x":117,"y":785,"width":694,"height":11}},{"id":"cfbfaa20-2b73-47ea-abed-a29c329cbf1f","block_type":"box","text":"responsibilities, which may give rise to certain additional risks including","page_number":477,"box":{"x":117,"y":800,"width":525,"height":12}},{"id":"46cce7aa-b4f6-46f1-965d-c583abc7632f","block_type":"box","text":",","page_number":477,"box":{"x":643,"y":808,"width":3,"height":3}},{"id":"4aaad525-adee-440c-b527-27b8daeaebdb","block_type":"box","text":"but not limited to, compliance,","page_number":477,"box":{"x":653,"y":800,"width":221,"height":12}},{"id":"89909441-5435-4f19-ae17-e631c8a8377f","block_type":"box","text":"securities law and operational risks.","page_number":477,"box":{"x":116,"y":816,"width":264,"height":12}},{"id":"5c5b7637-2035-4976-8444-e47ec8dae9e3","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers,","page_number":477,"box":{"x":117,"y":847,"width":724,"height":12}},{"id":"f5758eaf-ae0b-439f-a4d4-ec609a416b57","block_type":"box","text":"trustees, and remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual","page_number":477,"box":{"x":116,"y":862,"width":764,"height":12}},{"id":"4c114d77-2411-4f07-a2c5-d4baf37be4df","block_type":"box","text":"holder. Similar to the traditional tender option bond structure, a Fund deposits Municipal Bonds into the","page_number":477,"box":{"x":117,"y":878,"width":768,"height":12}},{"id":"b8b83b92-daae-44b5-a041-f45df28b9a5d","block_type":"box","text":"II-79","page_number":477,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"46bdd3e8-c442-4c56-9075-bf01ab367461","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":477,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4b34a806-6e28-45f4-8d45-a795898d2ea9","block_type":"box","text":"TOB Trust in exchange for TOB Residuals, the TOB Trust then issues and sells TOB Floaters to","page_number":478,"box":{"x":116,"y":87,"width":719,"height":12}},{"id":"4747d249-c75b-4228-85be-ef526cce5dc0","block_type":"box","text":"third-party investors, and the proceeds of the sale of the TOB Floaters is distributed to such TOB","page_number":478,"box":{"x":116,"y":102,"width":723,"height":13}},{"id":"721e2d48-4467-4aa6-b296-edcf2ec1e803","block_type":"box","text":"Residual holders (","page_number":478,"box":{"x":117,"y":118,"width":134,"height":12}},{"id":"1330ba4e-fce1-4911-8b9d-fe80a2f7ee2d","block_type":"box","text":"i.e.","page_number":478,"box":{"x":252,"y":118,"width":20,"height":10}},{"id":"3cfb4721-b12b-48c6-877d-ac75946b9443","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be supported by a remarketing","page_number":478,"box":{"x":275,"y":118,"width":591,"height":12}},{"id":"746653bb-0fbd-4b77-a077-59166556deee","block_type":"box","text":"agent and a liquidity facility. However, the remarketing agent does not purchase tendered TOB","page_number":478,"box":{"x":116,"y":134,"width":708,"height":12}},{"id":"cdfa2df5-c7ae-402b-a107-85b8dd164619","block_type":"box","text":"Floaters for its own account in the event of a failed remarketing, which may increase the likelihood that","page_number":478,"box":{"x":117,"y":149,"width":765,"height":12}},{"id":"8280bee0-3af3-4107-8cdc-34c236b27874","block_type":"box","text":"a TOB Trust will need to be collapsed and liquidated in order to purchase the tendered TOB Floaters.","page_number":478,"box":{"x":116,"y":165,"width":757,"height":11}},{"id":"56a6700a-4248-459f-8c66-526fd8b5ab04","block_type":"box","text":"In the event of a failed remarketing of TOB Floaters, the Liquidity Provider, at its option, may advance","page_number":478,"box":{"x":117,"y":180,"width":758,"height":12}},{"id":"013d3e98-d642-4292-bf20-5f078249dc52","block_type":"box","text":"a loan to the TOB Trust the proceeds of which would be used by the TOB Trust to purchase the","page_number":478,"box":{"x":116,"y":196,"width":715,"height":12}},{"id":"7c7a920a-ae9b-4cc7-be9a-33dfce354be9","block_type":"box","text":"tendered TOB Floaters. The Liquidity Provider is not obligated to advance such a loan. The TOB Trust","page_number":478,"box":{"x":116,"y":211,"width":764,"height":12}},{"id":"0f227a93-3151-45f2-9e4d-88426e6fccb2","block_type":"box","text":"would be the borrower with respect to any such loan. Any loans made by a Liquidity Provider will be","page_number":478,"box":{"x":116,"y":227,"width":744,"height":12}},{"id":"816db4cf-c0bf-4073-9a6d-8659132ab3ed","block_type":"box","text":"secured by the purchased TOB Floaters held by the TOB Trust.","page_number":478,"box":{"x":116,"y":242,"width":477,"height":12}},{"id":"7195ee78-036c-4ee3-98e6-d11d1eed655b","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals","page_number":478,"box":{"x":116,"y":270,"width":769,"height":12}},{"id":"a5f6bd23-5539-4e7e-a926-3fe35755d004","block_type":"box","text":"or recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would","page_number":478,"box":{"x":116,"y":286,"width":735,"height":12}},{"id":"b2a7494b-91b5-4827-98d2-31d96855af71","block_type":"box","text":"generally be no contractual recourse to the Fund’s assets if the Fund holds a non-recourse TOB","page_number":478,"box":{"x":116,"y":301,"width":718,"height":13}},{"id":"29260e3b-8ecd-45e8-bfd2-215fd7f077d1","block_type":"box","text":"Residual. However, as described above, a Fund would bear the risk of loss with respect to any","page_number":478,"box":{"x":117,"y":317,"width":706,"height":12}},{"id":"221fb7db-539c-46ea-a9ae-df8bd50b9df1","block_type":"box","text":"Liquidation Shortfall if it holds a recourse TOB Residual.","page_number":478,"box":{"x":117,"y":332,"width":420,"height":12}},{"id":"af9b24f2-c237-404a-a713-596a23ff189c","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for","page_number":478,"box":{"x":116,"y":361,"width":730,"height":12}},{"id":"a574da47-6e57-4bba-a090-c064b7602f24","block_type":"box","text":"securitizations (the “Risk Retention Rules”), which took effect in December 2016. The Risk Retention","page_number":478,"box":{"x":116,"y":376,"width":753,"height":12}},{"id":"d9985c6e-64e4-450b-8e98-a566c259735c","block_type":"box","text":"Rules require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets","page_number":478,"box":{"x":117,"y":392,"width":771,"height":12}},{"id":"8b06df9c-74a4-45f6-b9e3-fb9795d715e2","block_type":"box","text":"supporting the TOB Trust’s Municipal Bonds. The Risk Retention Rules may adversely affect the","page_number":478,"box":{"x":116,"y":407,"width":721,"height":12}},{"id":"145cb8a0-c1fe-4128-a822-eb2f479403d0","block_type":"box","text":"Fund’s ability to engage in TOB Trust transactions or increase the costs of such transactions in certain","page_number":478,"box":{"x":117,"y":423,"width":764,"height":12}},{"id":"c673159e-5681-4721-b222-f20523b0f3cc","block_type":"box","text":"circumstances.","page_number":478,"box":{"x":116,"y":438,"width":117,"height":10}},{"id":"b3521526-4e8a-4591-bad5-378f98ae78ca","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":478,"box":{"x":116,"y":467,"width":763,"height":12}},{"id":"b2090413-a44c-4b24-bef5-7a68a6bbcbd1","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through","page_number":478,"box":{"x":117,"y":482,"width":729,"height":12}},{"id":"cee5b302-8678-44ca-adfb-29bd02779501","block_type":"box","text":"reduced demand for and liquidity of municipal bonds and increased financing costs for municipal","page_number":478,"box":{"x":117,"y":498,"width":719,"height":12}},{"id":"8d5fbef7-c8f9-463a-b8ca-1a7644bb45b1","block_type":"box","text":"issuers. Any such developments could adversely affect the Funds. The ultimate impact of these rules","page_number":478,"box":{"x":117,"y":513,"width":754,"height":12}},{"id":"0dda8fa4-5b51-4306-9f09-8c04bd98f805","block_type":"box","text":"on the TOB market and the overall municipal market is not yet certain.","page_number":478,"box":{"x":116,"y":529,"width":520,"height":12}},{"id":"a09b2a79-5fdb-44e9-8abc-c8acbe04fe16","block_type":"box","text":"Yields.","page_number":478,"box":{"x":118,"y":557,"width":47,"height":10}},{"id":"bdab70df-3790-414a-86b4-14278f32c8fc","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general","page_number":478,"box":{"x":166,"y":557,"width":650,"height":12}},{"id":"5cdfc617-fce6-4f82-b06f-3ca87332935e","block_type":"box","text":"condition of the money market and of the municipal bond market, the size of a particular offering, the","page_number":478,"box":{"x":116,"y":573,"width":751,"height":12}},{"id":"546a5a38-b26a-4e5a-b887-001495ad595f","block_type":"box","text":"financial condition of the issuer, the maturity of the obligation and the rating of the issue. The ability of","page_number":478,"box":{"x":116,"y":588,"width":759,"height":12}},{"id":"f9cd1e83-8fcb-45e4-b303-7a9f0eb4bd74","block_type":"box","text":"a Fund to achieve its investment objective is also dependent on the continuing ability of the issuers of","page_number":478,"box":{"x":116,"y":604,"width":757,"height":12}},{"id":"53b997b2-07a3-4257-8ad9-13f204e6b621","block_type":"box","text":"the securities in which the Fund invests to meet their obligations for the payment of interest and","page_number":478,"box":{"x":116,"y":619,"width":714,"height":12}},{"id":"84013279-a195-4ebd-8acd-0bca2823f9a3","block_type":"box","text":"principal when due. There are variations in the risks involved in holding Municipal Bonds, both within a","page_number":478,"box":{"x":117,"y":635,"width":763,"height":12}},{"id":"bc1fe6ae-a1b5-4514-8147-974750b00be4","block_type":"box","text":"particular classification and between classifications, depending on numerous factors. Furthermore, the","page_number":478,"box":{"x":117,"y":650,"width":763,"height":12}},{"id":"8b30a6f9-1c31-43ac-9031-422cae474094","block_type":"box","text":"rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal Bonds may be","page_number":478,"box":{"x":117,"y":666,"width":753,"height":12}},{"id":"9619c6b4-caf4-4666-a9e3-d96238f918d4","block_type":"box","text":"subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights of","page_number":478,"box":{"x":116,"y":681,"width":763,"height":12}},{"id":"02d2fd60-90a1-470c-bf9d-6b665699f353","block_type":"box","text":"creditors generally and to general equitable principles, which may limit the enforcement of certain","page_number":478,"box":{"x":116,"y":697,"width":721,"height":12}},{"id":"446071a7-ef0c-4e43-826a-85e42a86234c","block_type":"box","text":"remedies.","page_number":478,"box":{"x":117,"y":712,"width":71,"height":10}},{"id":"f38472b8-fbd5-49ea-b10d-a5fb36818d2d","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":478,"box":{"x":118,"y":740,"width":344,"height":13}},{"id":"dabf1117-6660-4886-a343-555bd50979b8","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a","page_number":478,"box":{"x":468,"y":740,"width":365,"height":13}},{"id":"1a534326-2f31-457f-8baf-e81ce7a7501d","block_type":"box","text":"floating or variable interest rate adjustment formula and a right of demand on the part of the holder","page_number":478,"box":{"x":116,"y":756,"width":731,"height":12}},{"id":"c065af4a-fc43-4ac1-87e0-010c6a6432e0","block_type":"box","text":"thereof to receive payment of the unpaid principal balance plus accrued interest upon a short notice","page_number":478,"box":{"x":116,"y":771,"width":739,"height":13}},{"id":"865c1168-d67e-461b-b6eb-e797667dcbf8","block_type":"box","text":"period not to exceed seven days.","page_number":478,"box":{"x":117,"y":787,"width":244,"height":12}},{"id":"9b7538d3-063b-47b4-85c7-2e171a8d3f93","block_type":"box","text":"There is the possibility that because of default or insolvency the demand feature of VRDOs may not be","page_number":478,"box":{"x":116,"y":815,"width":763,"height":12}},{"id":"09f0a419-1097-4336-825b-1e38c840e3bb","block_type":"box","text":"honored. The interest rates are adjustable at periodic intervals to some prevailing market rate for","page_number":478,"box":{"x":117,"y":831,"width":721,"height":12}},{"id":"2eaba51c-6237-4c2d-88cd-362d24ee5b90","block_type":"box","text":"similar investments, such adjustment formula being calculated to maintain the market rate of the","page_number":478,"box":{"x":116,"y":846,"width":718,"height":12}},{"id":"e804d0ad-cef3-4e44-89f8-bbada006e7ca","block_type":"box","text":"VRDOs at approximately the par value of the VRDOs on the adjustment date. The adjustments","page_number":478,"box":{"x":116,"y":862,"width":710,"height":12}},{"id":"192d26c3-b37b-4814-9651-7bf8bcdfa611","block_type":"box","text":"typically are based upon the Securities Industry and Financial Markets Association (“SIFMA”) Index.","page_number":478,"box":{"x":116,"y":877,"width":746,"height":12}},{"id":"575ee3a2-9343-463c-baa1-a576ad142fbc","block_type":"box","text":"II-80","page_number":478,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"df7b2203-4ba7-4aba-91d5-93b030deb772","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":478,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1989dd55-a0c2-4772-84ff-02932b87f920","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate","page_number":479,"box":{"x":117,"y":87,"width":751,"height":12}},{"id":"b376719a-b7c6-4f99-abc8-b85aee78f864","block_type":"box","text":"securities. During periods of declining interest rates, a Fund’s yield on a VRDO will decrease and its","page_number":479,"box":{"x":116,"y":102,"width":746,"height":13}},{"id":"bcc42b22-9d96-411d-aa20-81e22db5dbab","block_type":"box","text":"shareholders will forego the opportunity for capital appreciation. During periods of rising interest rates,","page_number":479,"box":{"x":116,"y":118,"width":761,"height":12}},{"id":"efbff32d-be25-4a62-a13e-dbd9fe985bce","block_type":"box","text":"however, a Fund’s yield on a VRDO will increase and the Fund’s shareholders will have a reduced risk","page_number":479,"box":{"x":117,"y":134,"width":764,"height":12}},{"id":"bd268017-adcf-4c41-a397-95a362106898","block_type":"box","text":"of capital depreciation.","page_number":479,"box":{"x":116,"y":149,"width":173,"height":12}},{"id":"f7fff584-af8b-4433-9898-aa96acb264b2","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":479,"box":{"x":118,"y":180,"width":488,"height":12}},{"id":"3e227b64-db61-4ac0-a7f8-1df33c578cbc","block_type":"box","text":"The Municipal Funds and certain","page_number":479,"box":{"x":608,"y":180,"width":253,"height":12}},{"id":"dee089ba-8329-49ab-9536-d761418194bd","block_type":"box","text":"other funds deal in financial futures contracts based on a long-term municipal bond index developed by","page_number":479,"box":{"x":116,"y":196,"width":770,"height":12}},{"id":"3ddb5f5d-1315-4a6d-9d68-0ccb1e21899b","block_type":"box","text":"the Chicago Board of Trade (“CBT”) and The Bond Buyer (the “Municipal Bond Index”). The Municipal","page_number":479,"box":{"x":116,"y":211,"width":761,"height":12}},{"id":"1d3f04c0-7f97-43b5-9bd7-884254a97356","block_type":"box","text":"Bond Index is comprised of 40 long-term, actively traded tax-exempt municipal revenue and general","page_number":479,"box":{"x":117,"y":227,"width":746,"height":12}},{"id":"20e65ac8-04c1-4bba-84f6-b8855090aa3b","block_type":"box","text":"obligation bonds. Each bond included in the Municipal Bond Index must be rated A or higher by","page_number":479,"box":{"x":116,"y":242,"width":712,"height":12}},{"id":"9136b4ad-eef1-435a-92bd-e0f75ee8a3df","block_type":"box","text":"Moody’s or S&P and must have a remaining maturity of 19 years or more. Twice a month new issues","page_number":479,"box":{"x":117,"y":258,"width":754,"height":12}},{"id":"63180af8-0493-4c98-b87d-4ec0e3f1f602","block_type":"box","text":"satisfying the eligibility requirements are added to, and an equal number of old issues are deleted from,","page_number":479,"box":{"x":116,"y":273,"width":771,"height":12}},{"id":"e684b200-d1a0-4a5b-bcbf-bada7a4a55ae","block_type":"box","text":"the Municipal Bond Index. The value of the Municipal Bond Index is computed daily according to a","page_number":479,"box":{"x":116,"y":289,"width":734,"height":12}},{"id":"b30a997b-a640-4964-9449-aa2f78476601","block_type":"box","text":"formula based on the price of each bond in the Municipal Bond Index, as evaluated by six","page_number":479,"box":{"x":116,"y":304,"width":670,"height":12}},{"id":"1341c49c-a8a9-42b9-ae79-4d292c9b5d4e","block_type":"box","text":"dealer-to-dealer brokers.","page_number":479,"box":{"x":116,"y":320,"width":189,"height":9}},{"id":"86a905db-1907-43e4-a6e3-905a049a99f3","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the","page_number":479,"box":{"x":116,"y":351,"width":760,"height":12}},{"id":"ad915534-fe4b-4cf3-a139-c316da8ebb1b","block_type":"box","text":"CBT assures performance under futures contracts through a clearing corporation, a nonprofit","page_number":479,"box":{"x":117,"y":366,"width":694,"height":12}},{"id":"11e5b90f-f8ea-4e4e-8757-937b9dc86dfc","block_type":"box","text":"organization managed by the exchange membership that is also responsible for handling daily","page_number":479,"box":{"x":116,"y":382,"width":704,"height":12}},{"id":"a1b13860-543a-4a31-9240-518d25d455aa","block_type":"box","text":"accounting of deposits or withdrawals of margin.","page_number":479,"box":{"x":116,"y":397,"width":364,"height":12}},{"id":"4412af7c-20b9-43dc-9091-14bd505bd1b2","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial","page_number":479,"box":{"x":116,"y":428,"width":735,"height":12}},{"id":"ca346361-e782-4244-aa70-92074f728704","block_type":"box","text":"futures contract may vary from the bonds held by a Municipal Fund. As a result, a Municipal Fund’s","page_number":479,"box":{"x":116,"y":444,"width":741,"height":12}},{"id":"ff97820a-2ab0-4b2a-8814-e7c011eeb89a","block_type":"box","text":"ability to hedge effectively all or a portion of the value of its Municipal Bonds through the use of such","page_number":479,"box":{"x":116,"y":459,"width":749,"height":12}},{"id":"92b113e8-fe80-4608-9a19-13c8a1292d38","block_type":"box","text":"financial futures contracts will depend in part on the degree to which price movements in the index","page_number":479,"box":{"x":116,"y":475,"width":734,"height":12}},{"id":"2ae829cf-9010-4f2c-9e34-6ebcd02a39a2","block_type":"box","text":"underlying the financial futures contract correlate with the price movements of the Municipal Bonds","page_number":479,"box":{"x":117,"y":490,"width":737,"height":12}},{"id":"e752db65-b62f-4e7c-bb4f-70a46a20e476","block_type":"box","text":"held by the Fund. The correlation may be affected by disparities in the average maturity, ratings,","page_number":479,"box":{"x":117,"y":506,"width":718,"height":12}},{"id":"6e7dc02a-c613-49da-ab2b-9b01ac33fad7","block_type":"box","text":"geographical mix or structure of a Municipal Fund’s investments as compared to those comprising the","page_number":479,"box":{"x":116,"y":521,"width":760,"height":12}},{"id":"04f2fa33-e450-4a63-9935-dff4be080583","block_type":"box","text":"Municipal Bond Index and general economic or political factors. In addition, the correlation between","page_number":479,"box":{"x":117,"y":537,"width":741,"height":12}},{"id":"250a5c0a-117c-4e6f-8c59-459f0a2171eb","block_type":"box","text":"movements in the value of the Municipal Bond Index may be subject to change over time as additions","page_number":479,"box":{"x":117,"y":552,"width":759,"height":12}},{"id":"298649c2-2241-46c8-b1b3-5d27ca233763","block_type":"box","text":"to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":479,"box":{"x":116,"y":568,"width":731,"height":12}},{"id":"0a8d38e2-1b39-4ac4-94f2-a08df8d4c05f","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be","page_number":479,"box":{"x":116,"y":583,"width":750,"height":12}},{"id":"7fff4797-4a72-4316-8854-37a172ce8c79","block_type":"box","text":"adversely affected by similar factors and the risk of imperfect correlation between movements in the","page_number":479,"box":{"x":116,"y":599,"width":746,"height":12}},{"id":"ddba3872-3482-4253-beab-a908c211d8e1","block_type":"box","text":"prices of such futures contracts and the prices of Municipal Bonds held by a Municipal Fund may be","page_number":479,"box":{"x":117,"y":614,"width":745,"height":12}},{"id":"37f4478e-0c60-4ff8-87c1-4509d6e9db09","block_type":"box","text":"greater. Municipal Bond Index futures contracts were approved for trading in 1985. Trading in such","page_number":479,"box":{"x":116,"y":630,"width":738,"height":12}},{"id":"6487c4e6-0a9d-45c9-8b81-77c571b5f516","block_type":"box","text":"futures contracts may tend to be less liquid than trading in other futures contracts. The trading of","page_number":479,"box":{"x":116,"y":645,"width":721,"height":12}},{"id":"1a79dc58-1a67-44b2-8bed-e9519bfdebec","block_type":"box","text":"futures contracts also is subject to certain market risks, such as inadequate trading activity, which","page_number":479,"box":{"x":116,"y":661,"width":723,"height":12}},{"id":"e46f01d5-a6b9-448f-88df-75fcb94cf892","block_type":"box","text":"could at times make it difficult or impossible to liquidate existing positions.","page_number":479,"box":{"x":116,"y":676,"width":545,"height":12}},{"id":"9050a8c9-5cf4-474e-bcad-dd98b75dd595","block_type":"box","text":"Call Rights.","page_number":479,"box":{"x":117,"y":707,"width":83,"height":12}},{"id":"34459f4d-6800-4749-ae7c-87eb5872f10b","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a portion of such","page_number":479,"box":{"x":206,"y":707,"width":616,"height":12}},{"id":"2ce73081-2a12-4f00-b330-84963adf6a85","block_type":"box","text":"Municipal Bond for mandatory tender for purchase (a “Call Right”). A holder of a Call Right may","page_number":479,"box":{"x":117,"y":723,"width":706,"height":12}},{"id":"bf6d85ff-cbf1-4c41-b1a2-493ae2b79f30","block_type":"box","text":"exercise such right to require a mandatory tender for the purchase of related Municipal Bonds, subject","page_number":479,"box":{"x":116,"y":738,"width":759,"height":12}},{"id":"d94d36e4-eb9d-4e31-804d-8ddfc3fcc276","block_type":"box","text":"to certain conditions. A Call Right that is not exercised prior to maturity of the related Municipal Bond","page_number":479,"box":{"x":116,"y":754,"width":745,"height":12}},{"id":"a8053049-8353-4a7b-baaa-c6d3fe299b39","block_type":"box","text":"will expire without value. The economic effect of holding both the Call Right and the related Municipal","page_number":479,"box":{"x":116,"y":769,"width":750,"height":12}},{"id":"bb3d6745-0ac5-434c-b86b-eb10eb11cf7f","block_type":"box","text":"Bond is identical to holding a Municipal Bond as a non-callable security. Certain investments in such","page_number":479,"box":{"x":117,"y":785,"width":742,"height":12}},{"id":"b5c05f33-eaf1-4d7d-baf3-88bce39f7d5e","block_type":"box","text":"obligations may be illiquid.","page_number":479,"box":{"x":116,"y":800,"width":195,"height":12}},{"id":"4ef46769-78d6-4b11-a9d7-4aae33b1e0cf","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":479,"box":{"x":116,"y":831,"width":305,"height":12}},{"id":"6bdc105a-8828-49b7-aec0-2578364b1e1a","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":479,"box":{"x":423,"y":831,"width":414,"height":12}},{"id":"fcb6acd4-3a1e-410b-a21e-506a12c29f6a","block_type":"box","text":"fluctuations or to enhance a Fund’s income, a Fund may enter into interest rate swap transactions such as","page_number":479,"box":{"x":116,"y":847,"width":750,"height":12}},{"id":"c40378d7-4da2-4818-9bdf-b9e11d15ef09","block_type":"box","text":"Municipal Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets","page_number":479,"box":{"x":117,"y":862,"width":767,"height":12}},{"id":"cc6ebae8-45df-4ce5-8046-c4572b4fae56","block_type":"box","text":"Association Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these","page_number":479,"box":{"x":116,"y":878,"width":730,"height":12}},{"id":"4bdbbe09-7923-4414-b6f8-b621c0c1ed30","block_type":"box","text":"II-81","page_number":479,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"d37581f3-e2be-4851-a6a5-354bcca91f7b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":479,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"7a504cdd-c7cf-4448-81f3-876309a09875","block_type":"box","text":"transactions, the Fund expects to do so primarily to preserve a return or spread on a particular investment or","page_number":480,"box":{"x":116,"y":87,"width":765,"height":12}},{"id":"a5c9697c-2063-43de-9dd6-ab4619200ae2","block_type":"box","text":"portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates","page_number":480,"box":{"x":117,"y":102,"width":707,"height":13}},{"id":"daacfc2c-fe94-4734-83a3-216783d496dd","block_type":"box","text":"purchasing at a later date. A Fund intends to use these transactions primarily as a hedge rather than as a","page_number":480,"box":{"x":117,"y":118,"width":743,"height":12}},{"id":"27c4ac88-d159-4f37-a856-d34a0745029e","block_type":"box","text":"speculative investment. However, a Fund also may invest in MMD Swaps and SIFMA Swaps to enhance","page_number":480,"box":{"x":116,"y":134,"width":743,"height":12}},{"id":"91ee3bae-9e18-4382-859e-12574c221250","block_type":"box","text":"income or gain or to increase the Fund’s yield, for example, during periods of steep interest rate yield curves","page_number":480,"box":{"x":117,"y":149,"width":762,"height":12}},{"id":"21ce3777-d13b-4cff-b562-1f66865c1645","block_type":"box","text":"(","page_number":480,"box":{"x":117,"y":165,"width":4,"height":12}},{"id":"75d0e47d-cc84-4587-bfd8-96ffd93f53ef","block_type":"box","text":"i.e.","page_number":480,"box":{"x":121,"y":165,"width":19,"height":9}},{"id":"bb29ea58-42c2-42ec-8e9a-20e4119b1f12","block_type":"box","text":", wide differences between short-term and long-term interest rates).","page_number":480,"box":{"x":143,"y":165,"width":477,"height":12}},{"id":"bafadb3d-bbd2-4814-9978-8563e9e81cd6","block_type":"box","text":"A Fund may purchase and sell SIFMA Swaps in the SIFMA swap market. In a SIFMA Swap, a Fund","page_number":480,"box":{"x":116,"y":196,"width":747,"height":12}},{"id":"e4917dcf-5185-4200-b681-c9b17ec0766d","block_type":"box","text":"exchanges with another party their respective commitments to pay or receive interest (","page_number":480,"box":{"x":116,"y":211,"width":642,"height":12}},{"id":"a61854ad-b698-48f4-b7ee-589e4e86dcea","block_type":"box","text":"e.g.","page_number":480,"box":{"x":760,"y":214,"width":25,"height":9}},{"id":"cee1fefb-40bb-49a3-8a7f-43b7ee795501","block_type":"box","text":", an","page_number":480,"box":{"x":788,"y":214,"width":32,"height":8}},{"id":"e0066536-bae8-45a8-886a-bcd8691a9312","block_type":"box","text":"exchange of fixed rate payments for floating rate payments linked to the SIFMA Municipal Swap","page_number":480,"box":{"x":116,"y":227,"width":717,"height":12}},{"id":"361f6f41-a713-4c44-8352-5031e1c2f75d","block_type":"box","text":"Index). Because the underlying index is a tax-exempt index, SIFMA Swaps may reduce cross-market","page_number":480,"box":{"x":117,"y":242,"width":755,"height":12}},{"id":"d278a9dc-c74c-41e5-9db4-2cbcd46afca5","block_type":"box","text":"risks incurred by a Fund and increase a Fund’s ability to hedge effectively. SIFMA Swaps are typically","page_number":480,"box":{"x":117,"y":258,"width":760,"height":12}},{"id":"260f1d17-28a1-455f-a452-187e08c19f27","block_type":"box","text":"quoted for the entire yield curve, beginning with a seven day floating rate index out to 30 years. The","page_number":480,"box":{"x":116,"y":273,"width":745,"height":12}},{"id":"8135c1fb-3793-423e-85a9-dda2435637e8","block_type":"box","text":"duration of a SIFMA Swap is approximately equal to the duration of a fixed-rate Municipal Bond with","page_number":480,"box":{"x":116,"y":289,"width":747,"height":12}},{"id":"6ddcd998-223f-49c7-8770-c46e8c04d3ec","block_type":"box","text":"the same attributes as the swap (","page_number":480,"box":{"x":116,"y":304,"width":247,"height":12}},{"id":"535c6028-5397-4f17-a5f0-08844d9603d6","block_type":"box","text":"e.g.","page_number":480,"box":{"x":365,"y":307,"width":25,"height":9}},{"id":"6b050efd-db9d-403c-90a6-e899d8cd9d9e","block_type":"box","text":", coupon, maturity, call feature).","page_number":480,"box":{"x":393,"y":304,"width":240,"height":12}},{"id":"d5342541-95e9-487b-a10d-48106ce4d2e9","block_type":"box","text":"A Fund may also purchase and sell MMD Swaps, also known as MMD rate locks. An MMD Swap","page_number":480,"box":{"x":116,"y":335,"width":727,"height":12}},{"id":"366d3fc4-6918-40d7-b56d-6bf2dafb142c","block_type":"box","text":"permits a Fund to lock in a specified municipal interest rate for a portion of its portfolio to preserve a","page_number":480,"box":{"x":117,"y":351,"width":744,"height":12}},{"id":"95b512fe-cf31-4a03-96de-bea274d32ff9","block_type":"box","text":"return on a particular investment or a portion of its portfolio as a duration management technique or to","page_number":480,"box":{"x":117,"y":366,"width":761,"height":12}},{"id":"67209e9c-d85c-4006-b1b5-8844b040a71d","block_type":"box","text":"protect against any increase in the price of securities to be purchased at a later date. By using an MMD","page_number":480,"box":{"x":117,"y":382,"width":771,"height":12}},{"id":"558b4587-4e23-4a5c-a5c0-2efabe3dfc80","block_type":"box","text":"Swap, a Fund can create a synthetic long or short position, allowing the Fund to select the most","page_number":480,"box":{"x":116,"y":397,"width":715,"height":12}},{"id":"984c4833-f886-40a7-a9c5-d32c6f964fe0","block_type":"box","text":"attractive part of the yield curve. An MMD Swap is a contract between a Fund and an MMD Swap","page_number":480,"box":{"x":116,"y":413,"width":729,"height":12}},{"id":"35ad094b-621e-4b55-af68-d264be3e2196","block_type":"box","text":"provider pursuant to which the parties agree to make payments to each other on a notional amount,","page_number":480,"box":{"x":117,"y":428,"width":744,"height":12}},{"id":"deb20c72-0a38-4149-862f-7bec6c2075c6","block_type":"box","text":"contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or below a","page_number":480,"box":{"x":116,"y":444,"width":769,"height":12}},{"id":"eed8801b-f298-49f2-8a40-7708278f16cd","block_type":"box","text":"specified level on the expiration date of the contract. For example, if a Fund buys an MMD Swap and","page_number":480,"box":{"x":116,"y":459,"width":754,"height":12}},{"id":"e78a4536-970f-4276-a949-42a6dd017cf1","block_type":"box","text":"the Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration","page_number":480,"box":{"x":116,"y":475,"width":763,"height":12}},{"id":"34989b64-a9f3-461d-bd3c-5c994b2c7863","block_type":"box","text":"date, the counterparty to the contract will make a payment to the Fund equal to the specified level","page_number":480,"box":{"x":116,"y":490,"width":730,"height":12}},{"id":"a149d563-f456-4be3-a663-0a1b0f746fa5","block_type":"box","text":"minus the actual level, multiplied by the notional amount of the contract. If the Municipal Market Data","page_number":480,"box":{"x":117,"y":506,"width":751,"height":12}},{"id":"c3bb927f-84cc-4d4b-94bc-5df3ecfafffe","block_type":"box","text":"AAA General Obligation Scale is above the specified level on the expiration date, a Fund will make a","page_number":480,"box":{"x":116,"y":521,"width":752,"height":12}},{"id":"76e9f439-cf63-4d65-8035-1c2460d867f4","block_type":"box","text":"payment to the counterparty equal to the actual level minus the specified level, multiplied by the","page_number":480,"box":{"x":117,"y":537,"width":714,"height":12}},{"id":"c76e3d03-66dc-48f6-b2fd-6f765345b549","block_type":"box","text":"notional amount of the contract.","page_number":480,"box":{"x":117,"y":552,"width":239,"height":10}},{"id":"144a1f59-2e98-4e7c-aefd-1133d952fc2b","block_type":"box","text":"In connection with investments in SIFMA and MMD Swaps,","page_number":480,"box":{"x":117,"y":583,"width":444,"height":12}},{"id":"9383cb07-8b2e-41e3-b28a-a76049c117df","block_type":"box","text":"there is a risk that municipal yields will","page_number":480,"box":{"x":561,"y":583,"width":289,"height":12}},{"id":"4fe5cb1d-2195-4919-af2d-4424574c1fcb","block_type":"box","text":"move in the opposite direction than anticipated by a Fund, which would cause the Fund to make","page_number":480,"box":{"x":117,"y":599,"width":716,"height":12}},{"id":"1bf8929f-805d-4b02-993a-4353ab9d10d9","block_type":"box","text":"payments to its counterparty in the transaction that could adversely affect the Fund’s performance.","page_number":480,"box":{"x":117,"y":614,"width":735,"height":12}},{"id":"fdefa17a-c6b3-422e-8dc3-61c8f30033b3","block_type":"box","text":"Insured Municipal Bonds.","page_number":480,"box":{"x":117,"y":645,"width":186,"height":12}},{"id":"a9fff35e-805a-4bdb-add8-41831177b385","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees","page_number":480,"box":{"x":305,"y":645,"width":566,"height":12}},{"id":"5a6d5cf5-fe1f-4ea7-a3c2-3d96a5ca1d61","block_type":"box","text":"that interest payments on the bond will be made on time and the principal will be repaid when the bond","page_number":480,"box":{"x":116,"y":661,"width":762,"height":12}},{"id":"3edc36d5-7908-41c1-b4f4-88db24415470","block_type":"box","text":"matures. Either the issuer of the bond or the Fund purchases the insurance. Insurance is expected to","page_number":480,"box":{"x":117,"y":676,"width":750,"height":12}},{"id":"72ae69b6-356e-4c7b-ad3a-05bfa7dc0ff7","block_type":"box","text":"protect the Fund against losses caused by a bond issuer’s failure to make interest or principal","page_number":480,"box":{"x":117,"y":692,"width":693,"height":12}},{"id":"fc12e38f-8cbb-4791-a27a-218db355570a","block_type":"box","text":"payments. However, insurance does not protect the Fund or its shareholders against losses caused by","page_number":480,"box":{"x":117,"y":707,"width":762,"height":12}},{"id":"ee9fbb1d-2d55-4c83-826f-d1a81da9deee","block_type":"box","text":"declines in a bond’s market value. Also, the Fund cannot be certain that any insurance company does","page_number":480,"box":{"x":116,"y":723,"width":756,"height":12}},{"id":"5db20c05-3d15-4729-8fe9-ac5b236ba929","block_type":"box","text":"not make these payments. In addition, if the Fund purchases the insurance, it may pay the premiums,","page_number":480,"box":{"x":117,"y":738,"width":752,"height":12}},{"id":"d869cc49-2ad5-4a21-959a-67cafef41b09","block_type":"box","text":"which will reduce the Fund’s yield. The Fund seeks to use only insurance companies with claims","page_number":480,"box":{"x":116,"y":754,"width":715,"height":12}},{"id":"66b72dbc-43b5-4732-841f-f846f05eb8ee","block_type":"box","text":"paying ability, financial strength, or equivalent ratings of at least investment grade. However, if","page_number":480,"box":{"x":117,"y":769,"width":699,"height":12}},{"id":"39e42c6a-7256-4707-84b9-914b0d659b26","block_type":"box","text":"insurance from insurers with these ratings is not available, the Fund may use insurance companies","page_number":480,"box":{"x":117,"y":785,"width":733,"height":12}},{"id":"320dd4c9-0da1-455e-b8af-dbcce7de234c","block_type":"box","text":"with lower ratings or stop purchasing insurance or insured bonds. If a bond’s insurer fails to fulfill its","page_number":480,"box":{"x":116,"y":800,"width":736,"height":12}},{"id":"131ad8f9-e526-4985-82a9-b0b9a4bedc64","block_type":"box","text":"obligations or loses its credit rating, the value of the bond could drop.","page_number":480,"box":{"x":116,"y":816,"width":511,"height":12}},{"id":"9dbd407a-a678-4621-9990-2ae9a089052e","block_type":"box","text":"Build America Bonds.","page_number":480,"box":{"x":116,"y":847,"width":159,"height":9}},{"id":"46d55b4e-5101-49b8-8077-43b07a6caf41","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S.","page_number":480,"box":{"x":276,"y":847,"width":604,"height":12}},{"id":"1f15de26-b3c4-421d-b9e5-3f1c69bab71f","block_type":"box","text":"federal income tax credit; however, the issuer of a Build America Bond may instead elect to receive a","page_number":480,"box":{"x":116,"y":862,"width":756,"height":12}},{"id":"ce83423c-5161-46a6-baae-8a58d537e400","block_type":"box","text":"cash payment directly from the federal government in lieu of holders such as the fund receiving a tax","page_number":480,"box":{"x":116,"y":878,"width":752,"height":12}},{"id":"bdc1a703-f626-4107-b183-b24c6da935ea","block_type":"box","text":"II-82","page_number":480,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"10212391-e9a0-448e-97bf-79dd3761b83d","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":480,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"064cd565-8a83-492c-bd95-a662b41c0663","block_type":"box","text":"credit. The interest on Build America Bonds is taxable for U.S. federal income tax purposes. If the Fund","page_number":481,"box":{"x":116,"y":87,"width":772,"height":12}},{"id":"8bdc4eab-5d31-4eb9-a305-2a60665be425","block_type":"box","text":"does receive tax credits from Build America Bonds or other tax credit bonds on one or more specified","page_number":481,"box":{"x":116,"y":102,"width":757,"height":12}},{"id":"28f034ba-ff39-4b2e-bd42-16c78efa2e71","block_type":"box","text":"dates during the fund’s taxable year, and the Fund satisfies the minimum distribution requirement, the","page_number":481,"box":{"x":116,"y":118,"width":760,"height":12}},{"id":"03832ff3-617e-45ad-851e-130971845f12","block_type":"box","text":"Fund may elect for U.S. federal income tax purposes to pass through to shareholders tax credits","page_number":481,"box":{"x":117,"y":134,"width":719,"height":12}},{"id":"2e094f18-9c20-42ab-9efc-bab0ed58ddfe","block_type":"box","text":"otherwise allowable to the Fund for that year with respect to such bonds. A tax credit bond is defined in","page_number":481,"box":{"x":116,"y":149,"width":770,"height":12}},{"id":"23e528ef-001b-4e0f-9c69-c87b92a063e7","block_type":"box","text":"the Code as a “qualified tax credit bond” (which includes a qualified forestry conservation bond, a new","page_number":481,"box":{"x":116,"y":165,"width":761,"height":12}},{"id":"9fba4eef-e728-4c74-af89-aabec195f35d","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy","page_number":481,"box":{"x":116,"y":180,"width":729,"height":12}},{"id":"f0d53c6b-28d3-433e-b9c2-06e269c5818d","block_type":"box","text":"bond, each of which must meet certain requirements specified in the Code), a “Build America Bond”","page_number":481,"box":{"x":117,"y":196,"width":744,"height":12}},{"id":"66fa11b9-88ba-4316-97d6-e35e627d2710","block_type":"box","text":"(which includes certain qualified bonds issued before January 1, 2011) or certain other specified","page_number":481,"box":{"x":117,"y":211,"width":717,"height":12}},{"id":"e36491e0-4e94-44ff-aba3-9df67aa8ebc1","block_type":"box","text":"bonds. If the Fund were to so elect, a shareholder would be required to include in income and would be","page_number":481,"box":{"x":117,"y":227,"width":771,"height":11}},{"id":"6048fbfd-ce81-4d9a-a030-e339d3826e79","block_type":"box","text":"entitled to claim as a tax credit an amount equal to a proportionate share of such credits, and such","page_number":481,"box":{"x":116,"y":242,"width":735,"height":12}},{"id":"f95faed1-f510-4fe1-8bd1-46f19f7cb9d1","block_type":"box","text":"amount would be subject to withholding provisions of the Code. Certain limitations may apply on the","page_number":481,"box":{"x":116,"y":258,"width":746,"height":12}},{"id":"670c8025-a766-4abc-84eb-210230fde12f","block_type":"box","text":"extent to which the credit may be claimed.","page_number":481,"box":{"x":116,"y":273,"width":318,"height":12}},{"id":"336a2eb1-9fb8-4ee6-9594-969dcbc867a5","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":481,"box":{"x":118,"y":304,"width":263,"height":12}},{"id":"dfb7cccd-2a5d-477f-abdd-28f536a31946","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which","page_number":481,"box":{"x":382,"y":304,"width":494,"height":12}},{"id":"9eaf3d66-5350-4a12-87f4-39d463b313bd","block_type":"box","text":"may be in the form of tender option bonds, variable rate demand obligations, participations, beneficial","page_number":481,"box":{"x":117,"y":320,"width":757,"height":12}},{"id":"6d468610-a96b-47d3-b9ed-d9bc1169901a","block_type":"box","text":"interests in a trust, partnership interests or other forms. These investments are described in greater","page_number":481,"box":{"x":117,"y":335,"width":741,"height":12}},{"id":"bb40d9bd-0433-41fa-8843-20343713d819","block_type":"box","text":"detail above in this section. Some of the structures used by certain Funds include interests in long-term","page_number":481,"box":{"x":116,"y":351,"width":771,"height":12}},{"id":"7f6870d5-7889-42ca-96fb-cc2d263b181c","block_type":"box","text":"fixed-rate municipal debt obligations, held by a trustee or custodian, that are coupled with tender","page_number":481,"box":{"x":116,"y":366,"width":720,"height":12}},{"id":"6187b206-ade8-4766-85a3-6c63af5b32fd","block_type":"box","text":"option, demand and other features when the tax-exempt municipal investments are created. Together,","page_number":481,"box":{"x":116,"y":382,"width":764,"height":12}},{"id":"fe1e9601-9083-4232-a2b2-9c8612c48026","block_type":"box","text":"these features entitle the holder of the interest to tender (or put) the underlying municipal debt","page_number":481,"box":{"x":116,"y":397,"width":701,"height":12}},{"id":"1d60b315-e918-4e03-ae2e-4b93a8e72512","block_type":"box","text":"obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":481,"box":{"x":116,"y":413,"width":667,"height":12}},{"id":"f7262a38-00f8-4040-bd1d-52b7714ee387","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to","page_number":481,"box":{"x":117,"y":444,"width":745,"height":12}},{"id":"22f8dab4-6cdc-4409-9c0a-641f3ddd1eed","block_type":"box","text":"receive specific future interest payments, principal payments, or both, on the underlying securities held","page_number":481,"box":{"x":117,"y":459,"width":766,"height":12}},{"id":"942d1e3a-c556-4561-9fa3-e56bb3bad568","block_type":"box","text":"by the custodian. Under such arrangements, the holder of the custodial receipt has the option to tender","page_number":481,"box":{"x":117,"y":475,"width":769,"height":12}},{"id":"7bc03bdf-679b-4999-bfb1-97153d14beac","block_type":"box","text":"the underlying securities at their face value to the sponsor (","page_number":481,"box":{"x":116,"y":490,"width":440,"height":12}},{"id":"67d5688c-bb12-4233-a866-d10cf9abbf4f","block_type":"box","text":"e.g.","page_number":481,"box":{"x":557,"y":493,"width":26,"height":9}},{"id":"e1079e23-429e-4aa9-b786-f0809e0258e8","block_type":"box","text":", a Fund, or a bank or broker-dealer or","page_number":481,"box":{"x":586,"y":490,"width":289,"height":11}},{"id":"c0b4d1ae-7420-4cb4-8ee4-31d9bd8fb6a5","block_type":"box","text":"other financial institution), which is paid periodic fees equal to the difference between the securities’","page_number":481,"box":{"x":116,"y":506,"width":743,"height":12}},{"id":"f9259a20-b103-45ef-a15d-9c415fbe9d5e","block_type":"box","text":"fixed coupon rate and the rate that would cause the securities, coupled with the tender option, to trade","page_number":481,"box":{"x":116,"y":521,"width":763,"height":12}},{"id":"457e9c7b-4b97-4d53-b176-5149ba5e1c26","block_type":"box","text":"at par on the date of a rate adjustment.","page_number":481,"box":{"x":116,"y":537,"width":295,"height":12}},{"id":"230a253a-bb02-4d9d-a5eb-cb8721f40848","block_type":"box","text":"A participation interest gives the Fund an undivided interest in a Municipal Bond in the proportion the","page_number":481,"box":{"x":116,"y":568,"width":752,"height":12}},{"id":"045d38a9-33e9-43dc-9e2c-ab9e74698b09","block_type":"box","text":"Fund’s participation bears to the total principal amount of the Municipal Bond, and typically provides for","page_number":481,"box":{"x":117,"y":583,"width":769,"height":12}},{"id":"930bb03e-4a04-4691-be42-743ec164f43e","block_type":"box","text":"a repurchase feature for all or any part of the full principal amount of the participation interest, plus","page_number":481,"box":{"x":116,"y":599,"width":735,"height":12}},{"id":"4fc75a15-c70b-4400-b948-885cd28a623b","block_type":"box","text":"accrued interest. Trusts and partnerships are typically used to convert long-term fixed rate high quality","page_number":481,"box":{"x":116,"y":614,"width":763,"height":12}},{"id":"cb3c328e-e20c-4a23-acc4-3a85b5effd2f","block_type":"box","text":"bonds of a single state or municipal issuer into variable or floating rate demand instruments.","page_number":481,"box":{"x":117,"y":630,"width":686,"height":12}},{"id":"811e54cd-2c4f-437d-a701-d39988681642","block_type":"box","text":"The Municipal Bond Funds may hold participation intere","page_number":481,"box":{"x":116,"y":661,"width":397,"height":12}},{"id":"ccf8e27b-9734-4157-b7a5-5b58c0996427","block_type":"box","text":"sts and custodial receipts for municipal debt","page_number":481,"box":{"x":513,"y":661,"width":311,"height":12}},{"id":"ad036520-9236-4f8f-b2fc-b0849c101893","block_type":"box","text":"obligations which give the holder the right to receive","page_number":481,"box":{"x":116,"y":676,"width":368,"height":12}},{"id":"ca6b180a-92f1-4f91-8cf4-970f496bc306","block_type":"box","text":"payment of principal subject to the conditions described","page_number":481,"box":{"x":489,"y":676,"width":393,"height":12}},{"id":"fea597fb-fbf0-46eb-9019-9930370ee4ac","block_type":"box","text":"above. The IRS has not ruled on whether the interest re","page_number":481,"box":{"x":116,"y":692,"width":396,"height":9}},{"id":"46da39d0-1a0c-4a10-91a6-afe7cb86e19e","block_type":"box","text":"ceived on tax-exempt municipal investments in the","page_number":481,"box":{"x":512,"y":692,"width":359,"height":12}},{"id":"46469dcd-5d0e-43ad-9c1a-a9eae4bfe843","block_type":"box","text":"form of participation interests or custodial receipts is","page_number":481,"box":{"x":116,"y":707,"width":368,"height":12}},{"id":"70002481-5f04-4bd7-bd85-5be421f45f1e","block_type":"box","text":"tax-exempt, and accordingly, purchases of any such","page_number":481,"box":{"x":489,"y":707,"width":371,"height":12}},{"id":"2299b3af-93ab-4eee-8c50-a2b8cc09fd89","block_type":"box","text":"interests or receipts are based on the opinions of couns","page_number":481,"box":{"x":117,"y":723,"width":393,"height":12}},{"id":"084b5e72-e801-4918-a666-87d0a3fdf0f0","block_type":"box","text":"el to the sponsors of such derivative securities.","page_number":481,"box":{"x":511,"y":723,"width":331,"height":12}},{"id":"77bf73ee-3aba-4044-83a1-82ce087b88b8","block_type":"box","text":"Neither a Fund nor its investment adviser or sub-advis","page_number":481,"box":{"x":117,"y":738,"width":384,"height":10}},{"id":"bb57fe24-3e45-42c8-b8b9-2ea8c366bf8d","block_type":"box","text":"ers will review the proceedings related to the creation","page_number":481,"box":{"x":501,"y":738,"width":377,"height":12}},{"id":"4c57396d-fa38-46a3-8c4c-60248350c38f","block_type":"box","text":"of any tax-exempt municipal investments or the basis for such opinions.","page_number":481,"box":{"x":116,"y":754,"width":507,"height":12}},{"id":"bf450180-534a-4668-8ea6-df960a393581","block_type":"box","text":"Operational and Technology Risks","page_number":481,"box":{"x":117,"y":785,"width":276,"height":12}},{"id":"9932a026-29fb-4943-9bb4-4c2aedc0e29d","block_type":"box","text":". The Fund and the entities with which it interacts directly or","page_number":481,"box":{"x":394,"y":785,"width":440,"height":12}},{"id":"e7bba4ee-04ee-40f9-ac52-8b3e93799e1c","block_type":"box","text":"indirectly are susceptible to operational and technology risks, including those related to human errors,","page_number":481,"box":{"x":117,"y":800,"width":752,"height":12}},{"id":"683c305a-64d8-463e-9420-b7a0e06ef329","block_type":"box","text":"processing errors, communication errors, systems failures, cybersecurity incidents, and the use of","page_number":481,"box":{"x":117,"y":816,"width":726,"height":12}},{"id":"f56c7c9f-14fa-473f-b5ab-6e0780ab8d97","block_type":"box","text":"artificial intelligence and machine learning (“AI”), which may result in losses for the Fund and its","page_number":481,"box":{"x":116,"y":831,"width":713,"height":12}},{"id":"770b6618-c2d2-42b6-b302-c25d6a920828","block_type":"box","text":"shareholders or impair the Fund’s operations. These entities include, but are not limited to, the Fund’s","page_number":481,"box":{"x":116,"y":847,"width":760,"height":12}},{"id":"f5592f28-8ce0-4079-b355-4ecb75e4a58c","block_type":"box","text":"adviser, administrator, distributor, other service providers (e.g., index and benchmark providers,","page_number":481,"box":{"x":116,"y":862,"width":716,"height":12}},{"id":"849c0f17-6ab4-4ebd-8a62-1102ef5c68bc","block_type":"box","text":"accountants, custodians, and transfer agents), financial intermediaries, counterparties, market makers,","page_number":481,"box":{"x":116,"y":878,"width":768,"height":12}},{"id":"771f3c00-1f5b-4321-b3ea-6e50b6a80825","block_type":"box","text":"II-83","page_number":481,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"ea0951ae-c92e-4361-a87e-13cf5bbf898a","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":481,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"621854c5-5392-4770-b738-bc65aaaea94d","block_type":"box","text":"Authorized Participants, listing exchanges, other financial market operators, and governmental","page_number":482,"box":{"x":116,"y":87,"width":706,"height":12}},{"id":"7344f10d-3320-4343-8445-058514c7a648","block_type":"box","text":"authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":482,"box":{"x":116,"y":102,"width":748,"height":13}},{"id":"50607940-9c99-4892-b355-faeac7824718","block_type":"box","text":"could also result in material adverse consequences for such issuers and may cause the Fund’s","page_number":482,"box":{"x":116,"y":118,"width":711,"height":12}},{"id":"671c4a10-1bf5-4f18-a9c2-4aa73f821733","block_type":"box","text":"investments in such issuers to lose value. The Fund may incur substantial costs in order to mitigate","page_number":482,"box":{"x":117,"y":134,"width":741,"height":12}},{"id":"9f12ccac-9ded-4fe3-b6d2-c9a1a338a49d","block_type":"box","text":"operational and technology risks.","page_number":482,"box":{"x":116,"y":149,"width":250,"height":12}},{"id":"9ba42399-a9f0-4035-8298-70f4c91925f9","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in","page_number":482,"box":{"x":117,"y":180,"width":754,"height":12}},{"id":"595d4e7f-1dc5-4d78-b88a-cbb2d2288a36","block_type":"box","text":"which the Fund invests, the Fund or any of its service providers. They include, but are not limited to,","page_number":482,"box":{"x":116,"y":196,"width":746,"height":12}},{"id":"79271cde-0ca6-4d6b-ba7a-53205e8fa823","block_type":"box","text":"gaining unauthorized access to systems, misappropriating assets or sensitive information, corrupting or","page_number":482,"box":{"x":116,"y":211,"width":772,"height":12}},{"id":"6a9c6de7-49ba-4f95-acc2-3e2ee16d7864","block_type":"box","text":"destroying data, and causing operational disruption. Geopolitical tension may increase the scale and","page_number":482,"box":{"x":116,"y":227,"width":751,"height":12}},{"id":"5c33eaad-0b0b-43f4-bc64-b395df719b2d","block_type":"box","text":"sophistication of deliberate attacks, particularly those from nation states or from entities with nation","page_number":482,"box":{"x":116,"y":242,"width":738,"height":12}},{"id":"2bb5a27b-ca42-48ad-ad9e-a22bed37075b","block_type":"box","text":"state backing. Cybersecurity incidents may result in any of the following: financial losses; interference","page_number":482,"box":{"x":116,"y":258,"width":757,"height":12}},{"id":"eec4d331-2596-4605-b7ae-c1fcb58b6e4a","block_type":"box","text":"with the Fund’s ability to calculate its NAV; disclosure of confidential information; impediments to","page_number":482,"box":{"x":116,"y":273,"width":721,"height":12}},{"id":"70437124-1c2f-49c7-a793-9f7d3c63e8e7","block_type":"box","text":"trading; submission of erroneous trades by the Fund or erroneous subscription or redemption orders;","page_number":482,"box":{"x":116,"y":289,"width":754,"height":12}},{"id":"45fcff3c-c31f-45cb-8e72-6b07cc121558","block_type":"box","text":"the inability of the Fund or its service providers to transact business; violations of applicable privacy","page_number":482,"box":{"x":116,"y":304,"width":743,"height":12}},{"id":"e70974ad-d1c1-459b-a4a7-2eaab7a85c8f","block_type":"box","text":"and other laws; regulatory fines; penalties; reputational damage; reimbursement or other compensation","page_number":482,"box":{"x":116,"y":320,"width":772,"height":12}},{"id":"fa5bc542-970f-422d-a824-63c79175e13c","block_type":"box","text":"costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":482,"box":{"x":116,"y":335,"width":735,"height":12}},{"id":"d3c40b4c-aa28-4d30-9985-8cc811e27f6e","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of","page_number":482,"box":{"x":117,"y":351,"width":766,"height":12}},{"id":"76de4e7d-a845-43c9-8dbd-b570dfb7a9f8","block_type":"box","text":"Fund shares, and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete.","page_number":482,"box":{"x":117,"y":366,"width":761,"height":12}},{"id":"a792ceeb-46d3-4b96-89f9-8262b89df51f","block_type":"box","text":"Power outages, natural disasters, equipment malfunctions and processing errors that threaten","page_number":482,"box":{"x":117,"y":382,"width":702,"height":12}},{"id":"3b3e3b1c-741f-4909-a0fe-31d4ba42eba4","block_type":"box","text":"information and technology systems relied upon by the Fund or its service providers, as well as market","page_number":482,"box":{"x":117,"y":397,"width":766,"height":12}},{"id":"221683a6-a20e-4856-b840-38d8d4f5864d","block_type":"box","text":"events that occur at a pace that overloads these systems, may also disrupt business operations or","page_number":482,"box":{"x":116,"y":413,"width":735,"height":12}},{"id":"ce84283b-097c-4658-a9d8-a4c28268d658","block_type":"box","text":"impact critical data. Recent advances in AI technology pose risks to the Fund and its portfolio","page_number":482,"box":{"x":117,"y":428,"width":696,"height":12}},{"id":"9344ed94-b60f-42d8-83c7-3beca43c47a4","block_type":"box","text":"investments. These advancements could harm the Fund and its portfolio investments by reducing the","page_number":482,"box":{"x":117,"y":444,"width":756,"height":12}},{"id":"a69dfd68-56e8-4a3d-90a0-cc79c958e7fa","block_type":"box","text":"demand for both the technology and software offerings of the Fund’s portfolio investments.","page_number":482,"box":{"x":116,"y":459,"width":677,"height":12}},{"id":"9857fbba-cb1d-4501-8ced-1db3c8382729","block_type":"box","text":"Additionally, these advancements could significantly disrupt the Fund’s portfolio investments and","page_number":482,"box":{"x":116,"y":475,"width":722,"height":12}},{"id":"89b379c9-94f6-4935-b545-5bb3ba7a6ab2","block_type":"box","text":"subject them to increased competition, which could have a material adverse effect on business,","page_number":482,"box":{"x":116,"y":490,"width":714,"height":12}},{"id":"383adb6e-759a-4acf-abba-96993aef4640","block_type":"box","text":"financial condition, and results of operations. AI technology advancements, including efficiency","page_number":482,"box":{"x":116,"y":506,"width":708,"height":12}},{"id":"16f4d025-d74d-4027-badc-6131fda4d618","block_type":"box","text":"improvements, without related increases in the adoption and development of such technologies, could","page_number":482,"box":{"x":117,"y":521,"width":761,"height":12}},{"id":"b464b5fd-e74e-49e0-8d64-b00236b08ae9","block_type":"box","text":"also negatively impact demand for, and the valuation of, digital infrastructure assets.","page_number":482,"box":{"x":116,"y":537,"width":630,"height":12}},{"id":"4695df8b-192a-4e3b-a167-1cec9080d34e","block_type":"box","text":"The Fund and its portfolio investments could be exposed to the risks of AI technology if third-party","page_number":482,"box":{"x":116,"y":568,"width":731,"height":12}},{"id":"88440b0f-fc7c-46cc-a264-5034204e7465","block_type":"box","text":"service providers or any counterparties, whether or not known to the Fund, also use AI technology in","page_number":482,"box":{"x":116,"y":583,"width":751,"height":12}},{"id":"8905bf17-99b8-47bf-b41a-2e1d7f37fd22","block_type":"box","text":"their business activities. The Fund and its service providers may not be in a position to control the use","page_number":482,"box":{"x":116,"y":599,"width":761,"height":12}},{"id":"59e3ffbc-b42a-4f47-b2bf-12d2e09af7b9","block_type":"box","text":"of AI technology in third-party products or services.","page_number":482,"box":{"x":116,"y":614,"width":383,"height":12}},{"id":"677301d1-1ebd-4e1c-b598-c13e74cb9a82","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable","page_number":482,"box":{"x":117,"y":645,"width":750,"height":12}},{"id":"bc73015b-b672-4f0f-8a7d-a125063acf84","block_type":"box","text":"policies, contractual or other obligations or restrictions, resulting in such confidential information","page_number":482,"box":{"x":117,"y":661,"width":708,"height":12}},{"id":"e459c408-4700-4d6e-853e-adb532ab5ccf","block_type":"box","text":"becoming accessible by other third-party AI technology applications and users.","page_number":482,"box":{"x":117,"y":676,"width":583,"height":12}},{"id":"45b79e4b-6663-41b8-83f3-809a9e4ea6dd","block_type":"box","text":"Independent of its context of use, AI technology is generally highly reliant on the collection and","page_number":482,"box":{"x":117,"y":707,"width":700,"height":12}},{"id":"a7b2e057-cde4-4c15-9a77-ee39f3205a63","block_type":"box","text":"analysis of large amounts of data, may incorporate biased or inaccurate data, and it is not possible or","page_number":482,"box":{"x":116,"y":723,"width":752,"height":12}},{"id":"2a393477-1b1f-4d05-a82f-0efd53b08a84","block_type":"box","text":"practicable to incorporate all relevant data into the models that AI technology utilizes to operate.","page_number":482,"box":{"x":117,"y":738,"width":709,"height":12}},{"id":"fbd04859-6645-460a-9353-e53bd82fc118","block_type":"box","text":"Certain data in such models will inevitably contain a degree of inaccuracy and error, or could otherwise","page_number":482,"box":{"x":117,"y":754,"width":762,"height":12}},{"id":"4a4a32b2-c077-4f61-961a-17a0520569b2","block_type":"box","text":"be inadequate or flawed, which would be likely to degrade the effectiveness of AI technology. The","page_number":482,"box":{"x":117,"y":769,"width":724,"height":12}},{"id":"2f2c0891-67f5-45fc-8e7f-9c2c7232ea2d","block_type":"box","text":"output or results of any such AI technologies may therefore be incomplete, erroneous, distorted or","page_number":482,"box":{"x":116,"y":785,"width":728,"height":12}},{"id":"3959e0f3-353a-46ca-b50d-f2bd763a2b6f","block_type":"box","text":"misleading. Further, AI tools may lack transparency as to how data is utilized and how outputs are","page_number":482,"box":{"x":117,"y":800,"width":726,"height":12}},{"id":"2eb2debf-513d-4b47-9c6d-77f2b59b9073","block_type":"box","text":"generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":482,"box":{"x":116,"y":816,"width":679,"height":12}},{"id":"bd117702-7dfe-4127-93f3-8b88dc381d44","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its portfolio investments are exposed to","page_number":482,"box":{"x":117,"y":831,"width":764,"height":12}},{"id":"dec62b09-14c1-4b92-9217-bd44826140f8","block_type":"box","text":"the risks of AI technology use, any such inaccuracies or errors could have adverse impacts on the","page_number":482,"box":{"x":116,"y":847,"width":732,"height":12}},{"id":"febc4c7f-0a91-41e9-adae-9e469d888b85","block_type":"box","text":"Fund or its investments.","page_number":482,"box":{"x":117,"y":862,"width":182,"height":10}},{"id":"12dcaa3a-a33c-4418-ac74-3d8eb4d728d1","block_type":"box","text":"II-84","page_number":482,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"18bf7428-4aba-4fdb-8cc1-33da69e5eaaa","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":482,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"42f4a83f-6065-45db-8942-0fde9556463f","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to","page_number":483,"box":{"x":117,"y":87,"width":705,"height":12}},{"id":"2fb36aae-6340-4162-9984-a0415f3de0b6","block_type":"box","text":"monitoring and compliance. For example, in April 2023, the Federal Trade Commission, U.S.","page_number":483,"box":{"x":117,"y":102,"width":693,"height":13}},{"id":"d4e640ed-701a-45bc-804c-5f5f832c37b6","block_type":"box","text":"Department of Justice, Consumer Financial Protection Bureau, and U.S. Equal Employment","page_number":483,"box":{"x":117,"y":118,"width":686,"height":12}},{"id":"c0cb4e47-f49b-43a5-abd0-3c9b370bd92a","block_type":"box","text":"Opportunity Commission released a joint statement on artificial intelligence demonstrating interest in","page_number":483,"box":{"x":116,"y":134,"width":749,"height":12}},{"id":"a3ed383c-e57d-4095-9a49-78e13dd8dcac","block_type":"box","text":"monitoring the development and use of automated systems and enforcement of their respective laws","page_number":483,"box":{"x":117,"y":149,"width":752,"height":12}},{"id":"57ee90d6-dbe9-44b2-ac80-b5e9e80a24f8","block_type":"box","text":"and regulations. In October 2023, an executive order established new standards for AI safety and","page_number":483,"box":{"x":116,"y":165,"width":729,"height":12}},{"id":"285fc057-0f57-40af-a110-f3197a87419e","block_type":"box","text":"security. 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The Fund and its adviser seek to reduce these risks through","page_number":483,"box":{"x":116,"y":397,"width":706,"height":12}},{"id":"1fe8c76f-f9cf-4b8c-86be-a8698c05e7a5","block_type":"box","text":"controls, procedures and oversight, including establishing business continuity plans and risk","page_number":483,"box":{"x":116,"y":413,"width":687,"height":12}},{"id":"63ba3f72-5607-45f8-83b2-3d6f456e56f1","block_type":"box","text":"management systems. 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Regulators continue to develop new rules and standards","page_number":483,"box":{"x":117,"y":568,"width":747,"height":12}},{"id":"7ad685cd-a8f6-4a38-b9b9-c37c28e0d0ee","block_type":"box","text":"related to cybersecurity and data protection. 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A Fund may, but is not required to, purchas","page_number":484,"box":{"x":116,"y":103,"width":385,"height":12}},{"id":"c62b2bf3-80b7-43ba-8d55-8b02817d5139","block_type":"box","text":"e credit protection against the default of the issuer.","page_number":484,"box":{"x":502,"y":102,"width":363,"height":13}},{"id":"d5d75c6f-72c3-4798-b9d7-1b281a5d59bf","block_type":"box","text":"When the participation note expires or a Fund exercises t","page_number":484,"box":{"x":116,"y":118,"width":402,"height":12}},{"id":"7bf40962-e0c7-41e7-890e-9e1b3c0b2b71","block_type":"box","text":"the participation note and closes its position, the","page_number":484,"box":{"x":518,"y":118,"width":346,"height":12}},{"id":"f6e52639-e8b4-4960-a137-1b014dfb69b5","block_type":"box","text":"Fund receives a payment that is based upon the then-current","page_number":484,"box":{"x":117,"y":134,"width":434,"height":12}},{"id":"733f6d2c-a52a-43a2-a11a-ea29c1a1eed9","block_type":"box","text":"t value of the underlying security converted into","page_number":484,"box":{"x":551,"y":134,"width":335,"height":12}},{"id":"3daea84a-601b-49c2-aa9d-7dd64a96ec2b","block_type":"box","text":"U.S. dollars (less transaction costs). The price, perform","page_number":484,"box":{"x":117,"y":149,"width":390,"height":12}},{"id":"ecafa016-31b6-49d8-85e7-5c7d0c48f111","block_type":"box","text":"ance and liquidity of a participation note are all linked","page_number":484,"box":{"x":508,"y":149,"width":380,"height":12}},{"id":"5ff73bda-83cb-4ac4-a3cc-c80e43ee8f93","block_type":"box","text":"directly to the underlying security. A Fund’s ability to","page_number":484,"box":{"x":116,"y":165,"width":373,"height":12}},{"id":"68b9bbc4-e451-4f0e-8e16-a734b1dbddd0","block_type":"box","text":"redeem or exercise a participation note generally is","page_number":484,"box":{"x":490,"y":165,"width":366,"height":12}},{"id":"af5e18e8-2628-493b-8d4e-881e0282ddea","block_type":"box","text":"dependent on the liquidity in the local trading market f","page_number":484,"box":{"x":116,"y":180,"width":375,"height":12}},{"id":"46849930-253c-4905-aa92-d4ae46f95f6d","block_type":"box","text":"for the security underlying the participation note.","page_number":484,"box":{"x":491,"y":180,"width":346,"height":12}},{"id":"76c24675-6dc0-4e60-b59b-b1edcd0681aa","block_type":"box","text":"Portfolio Turnover Rates.","page_number":484,"box":{"x":116,"y":211,"width":193,"height":10}},{"id":"c3dd3daf-16ac-4516-ba2e-4d51a5376a14","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":484,"box":{"x":309,"y":211,"width":562,"height":12}},{"id":"6bd5c331-ca56-4704-a730-fca5e55db355","block_type":"box","text":"purchase when the Manager believes investment consi","page_number":484,"box":{"x":117,"y":227,"width":390,"height":12}},{"id":"c46ab6eb-56e1-4620-ac7d-c7b1f3a52ef8","block_type":"box","text":"derations warrant such sale or purchase. Although","page_number":484,"box":{"x":509,"y":227,"width":363,"height":12}},{"id":"e5ff3371-b1af-43b1-b2b4-43f93de25a23","block_type":"box","text":"certain Funds will use an approach to investing that is largely a passive, indexing approach, such Funds","page_number":484,"box":{"x":116,"y":242,"width":742,"height":12}},{"id":"8ee08e3e-8282-4a6f-a59c-6969ecc43841","block_type":"box","text":"may engage in a substantial number of portfolio transactions. 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Portfolio turnover may vary greatly from y","page_number":484,"box":{"x":116,"y":304,"width":397,"height":12}},{"id":"5bac598e-c7ed-4366-8baa-9a54334d213d","block_type":"box","text":"ear to year as well as within a particular year. High","page_number":484,"box":{"x":514,"y":304,"width":362,"height":12}},{"id":"12bbcf9c-84cd-4279-b9e6-38ec72989961","block_type":"box","text":"portfolio turnover (","page_number":484,"box":{"x":117,"y":320,"width":128,"height":12}},{"id":"dd8bda67-6eea-4f57-9d0f-afb7210e8132","block_type":"box","text":"i.e.","page_number":484,"box":{"x":246,"y":320,"width":19,"height":9}},{"id":"fb0b0600-3a76-4e22-b8f5-bd366cd46089","block_type":"box","text":", 100% or more) may result in increased transaction costs to a Fund, including","page_number":484,"box":{"x":268,"y":320,"width":559,"height":12}},{"id":"13b9ac98-b115-4cd6-9d32-9fb737e6a524","block_type":"box","text":"brokerage commissions, dealer mark-ups and other trans","page_number":484,"box":{"x":117,"y":335,"width":407,"height":12}},{"id":"863c496b-fda6-4372-9409-3d4ac071b227","block_type":"box","text":"action costs on the sale of the securities and","page_number":484,"box":{"x":525,"y":335,"width":320,"height":10}},{"id":"44e54668-7ad0-4dc7-a4c7-5d88e5a3db26","block_type":"box","text":"reinvestment in other securities. 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These","page_number":484,"box":{"x":472,"y":366,"width":395,"height":12}},{"id":"9d41cc73-c006-4b29-9156-c1ef702d8638","block_type":"box","text":"effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":484,"box":{"x":116,"y":382,"width":651,"height":12}},{"id":"5275131f-20a5-4cd0-86a1-8a6ed4b4fafe","block_type":"box","text":"Preferred Stock.","page_number":484,"box":{"x":116,"y":413,"width":123,"height":9}},{"id":"6f03f7b4-8c69-40f3-81d9-b9a9f0205d39","block_type":"box","text":"Certain Funds may invest in preferred sto","page_number":484,"box":{"x":240,"y":413,"width":300,"height":12}},{"id":"2ba5e50d-ce3e-4cca-8041-131a1cc508a3","block_type":"box","text":"cks. Preferred stock has a preference over","page_number":484,"box":{"x":540,"y":413,"width":308,"height":12}},{"id":"5841741c-3def-441d-a427-8ed8a5c3bc7c","block_type":"box","text":"common stock in liquidation (and generally dividends","page_number":484,"box":{"x":116,"y":428,"width":381,"height":12}},{"id":"1bbe1eca-b0d1-48fe-8607-cd7b51a83599","block_type":"box","text":"as well) but is subordinated to the bond holders and","page_number":484,"box":{"x":497,"y":428,"width":372,"height":12}},{"id":"661ccb7d-91d0-4092-8c14-8cbdd513341d","block_type":"box","text":"other creditors in all respects. As a general rule, t","page_number":484,"box":{"x":116,"y":444,"width":348,"height":12}},{"id":"d6efe7de-4055-459e-bfe4-ef6bd89f8576","block_type":"box","text":"he market value of preferred stock with a fixed dividend","page_number":484,"box":{"x":465,"y":444,"width":396,"height":12}},{"id":"48c75bac-e98a-401f-a709-c77df34f37c4","block_type":"box","text":"rate and no conversion element varies inversely with","page_number":484,"box":{"x":117,"y":459,"width":377,"height":12}},{"id":"7f59826f-bdad-4837-81ce-b5a84eb41002","block_type":"box","text":"interest rates and perceived credit risk, while the","page_number":484,"box":{"x":495,"y":459,"width":346,"height":12}},{"id":"c954453e-94b3-4c99-947e-8257496616e2","block_type":"box","text":"market price of convertible preferred stock generally","page_number":484,"box":{"x":117,"y":475,"width":373,"height":12}},{"id":"1c558ddb-281d-4650-b9bf-d11ea3d0ba11","block_type":"box","text":"also reflects some element of conversion value.","page_number":484,"box":{"x":490,"y":475,"width":343,"height":9}},{"id":"91288f0e-b093-4543-9ccc-db5594f4c1fc","block_type":"box","text":"Because preferred stock is junior to debt securities","page_number":484,"box":{"x":117,"y":490,"width":363,"height":12}},{"id":"daed5d32-e32b-438d-ab7b-2a2ba2a243b5","block_type":"box","text":"and other obligations of the issuer, deterioration in the","page_number":484,"box":{"x":480,"y":490,"width":387,"height":12}},{"id":"279e7077-b070-43af-b8cc-a8f5b4e2b727","block_type":"box","text":"credit quality of the issuer will cause greater changes in t","page_number":484,"box":{"x":116,"y":506,"width":402,"height":12}},{"id":"f23c78b9-b58f-4d6c-97c6-ff7e75c8fc39","block_type":"box","text":"he value of a preferred stock than in a more senior","page_number":484,"box":{"x":519,"y":506,"width":362,"height":12}},{"id":"fa21cb5e-6232-4d0e-ba34-c60fe79d5758","block_type":"box","text":"debt security with similar stated yield characteristics.","page_number":484,"box":{"x":116,"y":521,"width":370,"height":12}},{"id":"59b1bd3c-dadc-4ac6-95e9-385e7bd3ac77","block_type":"box","text":"Unlike interest payments on debt securities, preferred","page_number":484,"box":{"x":487,"y":521,"width":390,"height":12}},{"id":"da6988c1-b5ea-4255-87c5-b9ce4c69dc76","block_type":"box","text":"stock dividends are payable only if declared by the issuer","page_number":484,"box":{"x":116,"y":537,"width":406,"height":12}},{"id":"680aa3d2-6396-4f10-9ad8-c0243886f8a4","block_type":"box","text":"’s board of directors. Preferred stock also may be","page_number":484,"box":{"x":523,"y":537,"width":354,"height":12}},{"id":"9fa071b5-5903-4f99-b554-71fa0c0a8039","block_type":"box","text":"subject to optional or mandatory redemption provisions.","page_number":484,"box":{"x":116,"y":552,"width":400,"height":12}},{"id":"e0320372-f718-400c-9c84-16ed200cda68","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":484,"box":{"x":118,"y":583,"width":224,"height":12}},{"id":"21f546f8-9c31-4480-baa4-4e27feb4a373","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment","page_number":484,"box":{"x":344,"y":583,"width":507,"height":12}},{"id":"53f2e742-b937-437d-a73a-1dc3c6beae10","block_type":"box","text":"funds that pay dividends that are exempt from regular U.S. federal income tax. Such funds in turn","page_number":484,"box":{"x":116,"y":599,"width":728,"height":12}},{"id":"be41c4b1-a7a7-4fda-bdae-597ab902e951","block_type":"box","text":"invest in municipal bonds and other assets that pay interest or make distributions that are exempt from","page_number":484,"box":{"x":117,"y":614,"width":765,"height":12}},{"id":"558cd336-57c9-4aa3-a4b5-008f384f341c","block_type":"box","text":"regular U.S. federal income tax, such as revenue bonds issued by state or local agencies to fund the","page_number":484,"box":{"x":117,"y":630,"width":751,"height":12}},{"id":"ffb368ea-11c6-49e1-b1ae-3eabfbf57af6","block_type":"box","text":"development of low-income, multi-family housing. Investment in such tax-exempt preferred shares","page_number":484,"box":{"x":116,"y":645,"width":733,"height":12}},{"id":"b2eea90e-6e82-4a27-acc6-2ff5b0eaa8c8","block_type":"box","text":"involves many of the same issues as investing in other investment companies. These investments also","page_number":484,"box":{"x":117,"y":661,"width":763,"height":12}},{"id":"a920107c-fb95-45af-9004-6adb7ea97f76","block_type":"box","text":"have additional risks, including illiquid investments risk, the absence of regulation governing","page_number":484,"box":{"x":117,"y":676,"width":679,"height":12}},{"id":"1799709f-3e43-4e3c-8134-cab1c98faa96","block_type":"box","text":"investment practices, capital structure and leverage, affiliated transactions and other matters, and","page_number":484,"box":{"x":117,"y":692,"width":723,"height":12}},{"id":"620fc76c-5da4-41da-bb4b-ebc010717699","block_type":"box","text":"concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat","page_number":484,"box":{"x":116,"y":707,"width":736,"height":12}},{"id":"1b3ab12a-5575-4341-88b9-845f62fee5dc","block_type":"box","text":"investments in tax-exempt preferred shares as investments in municipal bonds.","page_number":484,"box":{"x":117,"y":723,"width":587,"height":12}},{"id":"351a8993-debd-4d2b-8c3a-0378763b8648","block_type":"box","text":"Trust Preferred Securities.","page_number":484,"box":{"x":118,"y":754,"width":193,"height":9}},{"id":"610e9e54-b1c3-46ba-972d-fb62f47f751b","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred","page_number":484,"box":{"x":318,"y":754,"width":514,"height":12}},{"id":"8b3146f7-8406-4e65-87a5-8b88d21966a9","block_type":"box","text":"securities are typically issued by corporations, generally in the form of interest bearing notes with","page_number":484,"box":{"x":116,"y":769,"width":718,"height":12}},{"id":"6d7762a2-1446-4a9b-a907-6ca2f1f255e4","block_type":"box","text":"preferred securities characteristics, or by an affiliated business trust of a corporation, generally in the","page_number":484,"box":{"x":117,"y":785,"width":746,"height":12}},{"id":"e633243e-7500-4212-b8bc-575c7bafd1f8","block_type":"box","text":"form of beneficial interests in subordinated debentures or similarly structured securities. The trust","page_number":484,"box":{"x":116,"y":800,"width":721,"height":12}},{"id":"c67660fc-cea4-4af4-9b4c-cde8757bbc8d","block_type":"box","text":"preferred securities market consists of both fixed and adjustable coupon rate securities that are either","page_number":484,"box":{"x":117,"y":816,"width":753,"height":12}},{"id":"f680e2e5-463b-4abb-a179-0541be218b30","block_type":"box","text":"perpetual in nature or have stated maturity dates.","page_number":484,"box":{"x":117,"y":831,"width":370,"height":12}},{"id":"b3f3cbf6-aacd-48f3-8da5-562920e17c94","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit","page_number":484,"box":{"x":116,"y":862,"width":748,"height":12}},{"id":"37dc9568-ef40-469f-8b33-60a9326fcd25","block_type":"box","text":"from a guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition,","page_number":484,"box":{"x":116,"y":878,"width":771,"height":12}},{"id":"dd46c36d-da38-458c-bf35-0e8b5bec22b2","block_type":"box","text":"II-86","page_number":484,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"0b66f28b-7be3-4b15-b47d-014b6c5e394b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":484,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"21a42d1f-9cca-42f8-883b-cd3a01491218","block_type":"box","text":"trust preferred securities typically permit an issuer to defer the payment of income for five years or","page_number":485,"box":{"x":116,"y":87,"width":733,"height":12}},{"id":"2fa5ab0e-1c59-4f67-a161-4fb5c28c80b9","block_type":"box","text":"more without triggering an event of default. Because of their subordinated position in the capital","page_number":485,"box":{"x":117,"y":102,"width":713,"height":13}},{"id":"fca473a6-03dc-4204-a4d9-fb3640e37747","block_type":"box","text":"structure of an issuer, the ability to defer payments for extended periods of time without default","page_number":485,"box":{"x":116,"y":118,"width":708,"height":12}},{"id":"0e220d6b-2021-495c-b6ab-7012b8d4c6c9","block_type":"box","text":"consequences to the issuer, and certain other features (such as restrictions on common dividend","page_number":485,"box":{"x":116,"y":134,"width":725,"height":12}},{"id":"36860b76-3e99-45fe-8246-d227c50b02fd","block_type":"box","text":"payments by the issuer or ultimate guarantor when full cumulative payments on the trust preferred","page_number":485,"box":{"x":117,"y":149,"width":733,"height":12}},{"id":"eb23913b-d4f2-412d-a9af-5d8b9821b24b","block_type":"box","text":"securities have not been made), these trust preferred securities are often treated as close substitutes","page_number":485,"box":{"x":116,"y":165,"width":756,"height":12}},{"id":"069fdd88-2eed-4a10-b99b-c4941177c9a3","block_type":"box","text":"for traditional preferred securities, both by issuers and investors.","page_number":485,"box":{"x":116,"y":180,"width":483,"height":12}},{"id":"3cc9fc3e-b087-4c35-84ef-158053fedcac","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":485,"box":{"x":116,"y":211,"width":740,"height":12}},{"id":"2fa392f7-3ed8-49ce-b442-f8f85486d986","block_type":"box","text":"®","page_number":485,"box":{"x":857,"y":210,"width":9,"height":7}},{"id":"f909e7a0-70af-4464-b8e4-745803b87937","block_type":"box","text":"”);","page_number":485,"box":{"x":867,"y":211,"width":20,"height":12}},{"id":"4df7b604-8484-4a56-ba8a-8ddd3a1a3e63","block_type":"box","text":"monthly income preferred securities (“MIPS","page_number":485,"box":{"x":117,"y":227,"width":322,"height":12}},{"id":"2cb3f67e-fe5a-42cc-89a0-5c59d73147a9","block_type":"box","text":"®","page_number":485,"box":{"x":439,"y":226,"width":10,"height":7}},{"id":"8290a384-460f-40d0-8c59-73bc1d672449","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":485,"box":{"x":449,"y":227,"width":330,"height":12}},{"id":"0a523b2a-0df9-43ec-86ae-c5301afda820","block_type":"box","text":"®","page_number":485,"box":{"x":780,"y":226,"width":9,"height":7}},{"id":"b99f01e5-eb44-4645-b103-3a16f541ddba","block_type":"box","text":"” ); quarterly","page_number":485,"box":{"x":790,"y":227,"width":95,"height":12}},{"id":"7ef6164d-4a6a-4868-8774-7dac1ead5991","block_type":"box","text":"income debt securities (“QUIDS","page_number":485,"box":{"x":117,"y":242,"width":234,"height":12}},{"id":"9624d923-44d8-418a-8cdd-2c3a0f77a91d","block_type":"box","text":"®","page_number":485,"box":{"x":352,"y":241,"width":10,"height":7}},{"id":"af58f413-b1d3-41eb-b46f-271ef98837c6","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":485,"box":{"x":362,"y":242,"width":361,"height":12}},{"id":"12c8d68d-8b2c-4b5a-9ec3-f517921b25f5","block_type":"box","text":"SM","page_number":485,"box":{"x":724,"y":242,"width":16,"height":6}},{"id":"d365ca92-73bf-4477-b445-1a54a610260f","block_type":"box","text":"”); corporate trust","page_number":485,"box":{"x":741,"y":242,"width":133,"height":12}},{"id":"fa6a74fd-956c-43b3-87bd-864cc486706a","block_type":"box","text":"securities (“CORTS","page_number":485,"box":{"x":116,"y":258,"width":145,"height":12}},{"id":"fe5ece2b-9fa2-49be-93d3-6f3f70247930","block_type":"box","text":"®","page_number":485,"box":{"x":262,"y":257,"width":9,"height":7}},{"id":"ac362c95-f75f-4583-8025-33b8e5d86d2f","block_type":"box","text":"”); public income notes (“PINES","page_number":485,"box":{"x":271,"y":258,"width":235,"height":12}},{"id":"b9c56f22-7935-41d5-ad1f-bba093866040","block_type":"box","text":"®","page_number":485,"box":{"x":507,"y":257,"width":9,"height":7}},{"id":"f62dd19f-4ae5-41fe-ad85-8258d8fd8104","block_type":"box","text":"”); and other trust preferred securities.","page_number":485,"box":{"x":517,"y":258,"width":287,"height":12}},{"id":"4f9d51ec-42d3-4ac1-a536-476c6c552b31","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in","page_number":485,"box":{"x":116,"y":289,"width":766,"height":12}},{"id":"1def1059-d684-458a-a7fc-268bf204f675","block_type":"box","text":"nature. In certain instances, a final maturity date may be extended and/or the final payment of principal","page_number":485,"box":{"x":117,"y":304,"width":767,"height":12}},{"id":"b3f7cd06-3fad-4f88-ad93-1bb7360ae22d","block_type":"box","text":"may be deferred at the issuer’s option for a specified time without default. No redemption can typically","page_number":485,"box":{"x":117,"y":320,"width":760,"height":12}},{"id":"7fba5050-2f6c-4a48-b21b-a469bfe83028","block_type":"box","text":"take place unless all cumulative payment obligations have been met, although issuers may be able to","page_number":485,"box":{"x":116,"y":335,"width":758,"height":12}},{"id":"97dabc4e-03cc-41fa-afd2-62a736dda134","block_type":"box","text":"engage in open-market repurchases without regard to whether all payments have been paid.","page_number":485,"box":{"x":116,"y":351,"width":693,"height":12}},{"id":"e4afeed0-39b2-4b90-a657-13a841bce7eb","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by","page_number":485,"box":{"x":117,"y":382,"width":737,"height":12}},{"id":"1419bf4a-7a3b-4d6e-9096-74f8cfb7413a","block_type":"box","text":"operating companies and are not a direct obligation of an operating company. At the time the trust or","page_number":485,"box":{"x":116,"y":397,"width":752,"height":12}},{"id":"df976b69-a7e6-44d8-8398-aa947a93afda","block_type":"box","text":"special purpose entity sells such preferred securities to investors, it purchases debt of the operating","page_number":485,"box":{"x":116,"y":413,"width":745,"height":12}},{"id":"3c1d1fb2-3a1c-423d-a838-ddba22bb396a","block_type":"box","text":"company (with terms comparable to those of the trust or special purpose entity securities), which","page_number":485,"box":{"x":116,"y":428,"width":722,"height":12}},{"id":"c36fdea4-6eac-4d9e-bfab-1f787304a7b7","block_type":"box","text":"enables the operating company to deduct for tax purposes the interest paid on the debt held by the","page_number":485,"box":{"x":116,"y":444,"width":739,"height":12}},{"id":"ffb93ecf-2628-4e3c-a89f-c0ba2a180ac4","block_type":"box","text":"trust or special purpose entity. The trust or special purpose entity is generally required to be treated as","page_number":485,"box":{"x":116,"y":459,"width":765,"height":12}},{"id":"9bf52c1d-a379-4ced-803f-624a89b0c3c1","block_type":"box","text":"transparent for U.S. federal income tax purposes such that the holders of the trust preferred securities","page_number":485,"box":{"x":116,"y":475,"width":762,"height":12}},{"id":"cc7b632d-0ace-4d3f-ac44-3afc7c5095d3","block_type":"box","text":"are treated as owning beneficial interests in the underlying debt of the operating company. Accordingly,","page_number":485,"box":{"x":116,"y":490,"width":772,"height":12}},{"id":"6a7660cc-2470-456b-8736-0befbb79f223","block_type":"box","text":"payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":485,"box":{"x":117,"y":506,"width":763,"height":12}},{"id":"762c753c-8886-4157-8c23-d872ca02eb1e","block_type":"box","text":"income tax purposes. The trust or special purpose entity in turn would be a holder of the operating","page_number":485,"box":{"x":117,"y":521,"width":732,"height":12}},{"id":"acea708b-13fa-4070-b9ed-a73bd735d6c9","block_type":"box","text":"company’s debt and would have priority with respect to the operating company’s earnings and profits","page_number":485,"box":{"x":116,"y":537,"width":754,"height":12}},{"id":"cf315b9c-4361-4bf0-b27e-c0195f149a02","block_type":"box","text":"over the operating company’s common shareholders, but would typically be subordinated to other","page_number":485,"box":{"x":116,"y":552,"width":729,"height":12}},{"id":"3084050b-5dfd-4655-a3da-c332883e18b0","block_type":"box","text":"classes of the operating company’s debt. Typically a preferred share has a rating that is slightly below","page_number":485,"box":{"x":116,"y":568,"width":760,"height":12}},{"id":"94d240eb-9e2a-4b3d-9ae4-528c18fa3e42","block_type":"box","text":"that of its corresponding operating company’s senior debt securities.","page_number":485,"box":{"x":116,"y":583,"width":512,"height":12}},{"id":"059661bb-504b-40ca-8d9b-06cc236f293b","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":485,"box":{"x":116,"y":614,"width":324,"height":12}},{"id":"205544a1-c173-44be-b6ce-880a982bff32","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in","page_number":485,"box":{"x":441,"y":614,"width":430,"height":12}},{"id":"beec291d-030b-4bc9-b444-d639d434c79b","block_type":"box","text":"shares of REITs. REITs possess certain risks which differ from an investment in common stocks.","page_number":485,"box":{"x":116,"y":630,"width":724,"height":12}},{"id":"19c16d58-1089-43e1-b7e7-f68bba467ec4","block_type":"box","text":"REITs are financial vehicles that pool investor’s capital to purchase or finance real estate. REITs may","page_number":485,"box":{"x":117,"y":645,"width":756,"height":12}},{"id":"26b73566-8ce1-424c-b5fa-1dce0bb2b368","block_type":"box","text":"concentrate their investments in specific geographic areas or in specific property types,","page_number":485,"box":{"x":116,"y":661,"width":646,"height":12}},{"id":"846b7da2-d43f-42aa-b85d-674e4128ce00","block_type":"box","text":"i.e.","page_number":485,"box":{"x":768,"y":661,"width":21,"height":9}},{"id":"653dbbbd-193a-4a45-9753-b35fb79eb48d","block_type":"box","text":", hotels,","page_number":485,"box":{"x":792,"y":661,"width":56,"height":11}},{"id":"6c32b4a3-83b1-4bfa-a943-3d8ac1f89f98","block_type":"box","text":"shopping malls, residential complexes and office buildings.","page_number":485,"box":{"x":116,"y":676,"width":435,"height":12}},{"id":"18a8fe7f-b616-4ef9-93e1-c36fecbc6d79","block_type":"box","text":"REITs are subject to management fees and other expenses, and so a Fund that invests in REITs will","page_number":485,"box":{"x":117,"y":707,"width":746,"height":12}},{"id":"e54e2f5f-e6d5-4204-9ebe-b7649119973e","block_type":"box","text":"bear its proportionate share of the costs of the REITs’ operations. There are three general categories","page_number":485,"box":{"x":117,"y":723,"width":749,"height":12}},{"id":"f4bf81a3-5728-455d-aec3-7c00ecdc16e8","block_type":"box","text":"of REITs: Equity REITs, Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee","page_number":485,"box":{"x":116,"y":738,"width":758,"height":12}},{"id":"36a2a2a8-e874-4566-9ae5-7756e023f774","block_type":"box","text":"ownership or leasehold ownership of real property, which derive most of their income from rents.","page_number":485,"box":{"x":116,"y":754,"width":715,"height":12}},{"id":"1bbd8bbc-dbf6-45f1-abc9-53754602d08f","block_type":"box","text":"Mortgage REITs invest mostly in mortgages on real estate, which may secure construction,","page_number":485,"box":{"x":117,"y":769,"width":675,"height":12}},{"id":"3505cf01-2c16-4b0a-b8c7-4a271e006036","block_type":"box","text":"development or long-term loans; the main source of their income is mortgage interest payments.","page_number":485,"box":{"x":116,"y":785,"width":714,"height":12}},{"id":"bf0bf59c-d013-4f5e-b664-770a07a7d542","block_type":"box","text":"Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":485,"box":{"x":117,"y":800,"width":535,"height":12}},{"id":"468bd8fd-0f0a-49fe-912f-cda8294f4fab","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in","page_number":485,"box":{"x":117,"y":831,"width":749,"height":12}},{"id":"729201d1-b909-480f-9234-63623371fb71","block_type":"box","text":"the real estate industry in general. The market value of REIT shares and the ability of the REITs to","page_number":485,"box":{"x":116,"y":847,"width":735,"height":12}},{"id":"6476aab8-7bfc-4887-9143-1f1a118c1e8c","block_type":"box","text":"distribute income may be adversely affected by several factors, including rising interest rates, changes","page_number":485,"box":{"x":116,"y":862,"width":765,"height":12}},{"id":"2cfd8944-20b5-4051-a5f5-e40d23f6bd28","block_type":"box","text":"in the national, state and local economic climate and real estate conditions, occupancy and rental","page_number":485,"box":{"x":117,"y":878,"width":727,"height":12}},{"id":"1828cab1-b36b-42d2-a2e7-26fdab17321e","block_type":"box","text":"II-87","page_number":485,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"d59da39f-100f-4352-8bd7-01311ae570e7","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":485,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"7756efa9-aebe-4829-82f8-490890863d65","block_type":"box","text":"rales, perceptions of prospective tenants of the safety, convenience and attractiveness of the","page_number":486,"box":{"x":117,"y":87,"width":694,"height":12}},{"id":"9b8539f1-3f52-47b2-8b91-cabe0b148018","block_type":"box","text":"properties, the ability of the owners to provide adequate management, maintenance and insurance, the","page_number":486,"box":{"x":117,"y":102,"width":770,"height":13}},{"id":"e1b5501a-b05f-41e4-a002-90e9f2d233d5","block_type":"box","text":"cost of complying with the Americans with Disabilities Act, increased competition from new properties,","page_number":486,"box":{"x":116,"y":118,"width":761,"height":12}},{"id":"69c75a31-34ab-40b6-8ac7-479e7298f4d1","block_type":"box","text":"the impact of present or future environmental legislation and compliance with environmental laws,","page_number":486,"box":{"x":116,"y":134,"width":729,"height":12}},{"id":"c27c1621-6432-435a-a6d0-11dc4fcfe840","block_type":"box","text":"failing to maintain their exemptions from registration under the Investment Company Act, changes in","page_number":486,"box":{"x":116,"y":149,"width":749,"height":12}},{"id":"7f10b28c-e315-4799-908c-55c81776c6f1","block_type":"box","text":"real estate taxes and other operating expenses, adverse changes in governmental rules and fiscal","page_number":486,"box":{"x":117,"y":165,"width":733,"height":12}},{"id":"9f149d50-a25b-4e3a-8cff-31e67ae3e283","block_type":"box","text":"policies, adverse changes in zoning laws and other factors beyond the control of the issuers of the","page_number":486,"box":{"x":117,"y":180,"width":733,"height":12}},{"id":"3982863c-8f86-4dd6-ac10-9f08bb2e4439","block_type":"box","text":"REITs. To the extent that assets underlying a REIT are concentrated geographically, by property type,","page_number":486,"box":{"x":117,"y":196,"width":762,"height":12}},{"id":"2bd4ce0e-438d-4860-a4bc-e4231ae5efb1","block_type":"box","text":"or in certain other respects, these risks may be heightened.","page_number":486,"box":{"x":116,"y":211,"width":446,"height":12}},{"id":"1bba6c4b-e097-485c-a9ce-68a4100de2f1","block_type":"box","text":"In addition, distributions received by a Fund from REITs may consist of dividends, capital gains and/or","page_number":486,"box":{"x":117,"y":242,"width":761,"height":12}},{"id":"a13b9db8-c8f5-489f-bf8d-408b94594532","block_type":"box","text":"return of capital. As REITs generally pay a higher rate of dividends (on a pre-tax basis) than operating","page_number":486,"box":{"x":117,"y":258,"width":760,"height":12}},{"id":"3072ae0f-05be-4182-b3aa-3a70e89b8b61","block_type":"box","text":"companies, to the extent application of the Fund’s investment strategy results in the Fund investing in","page_number":486,"box":{"x":116,"y":273,"width":758,"height":12}},{"id":"53e3224a-1411-444f-9920-b8cec45db7b4","block_type":"box","text":"REIT shares, the percentage of the Fund’s dividend income received from REIT shares will likely","page_number":486,"box":{"x":117,"y":289,"width":722,"height":12}},{"id":"f52cb7b4-a142-445f-9b3e-eaa9c65f035b","block_type":"box","text":"exceed the percentage of the Fund’s portfolio which is comprised of REIT shares. Ordinary REIT","page_number":486,"box":{"x":116,"y":304,"width":723,"height":12}},{"id":"ae0203cf-e83f-4ee3-9156-1b64066edd39","block_type":"box","text":"dividends received by the Fund and distributed to the Fund’s shareholders will generally be taxable as","page_number":486,"box":{"x":116,"y":320,"width":762,"height":12}},{"id":"60586bb2-0abe-4482-8dbf-4cfc00afa541","block_type":"box","text":"ordinary income and will not constitute “qualified dividend income.” However, a non-corporate taxpayer","page_number":486,"box":{"x":116,"y":335,"width":768,"height":12}},{"id":"20baf978-017c-4708-b59a-6f7e319bf02f","block_type":"box","text":"who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for ordinary","page_number":486,"box":{"x":116,"y":351,"width":757,"height":12}},{"id":"5ff46145-891a-46cf-ab3a-5b3a0c79283e","block_type":"box","text":"REIT dividends, and a regulated investment company may report dividends as eligible for this","page_number":486,"box":{"x":117,"y":366,"width":698,"height":12}},{"id":"8705676d-9ec0-4adb-90a6-df670dd7b1e9","block_type":"box","text":"deduction to the extent the regulated investment company’s income is derived from ordinary REIT","page_number":486,"box":{"x":116,"y":382,"width":731,"height":12}},{"id":"ad603904-a279-48bc-becf-aff7379f9055","block_type":"box","text":"dividends (reduced by allocable regulated investment company expenses). A shareholder may treat","page_number":486,"box":{"x":116,"y":397,"width":745,"height":12}},{"id":"0645bfe1-a397-49e8-9853-ecdc32cebeb8","block_type":"box","text":"the dividends as such provided the regulated investment company and the shareholder satisfy","page_number":486,"box":{"x":116,"y":413,"width":704,"height":12}},{"id":"3ee2d0b4-c9fe-4e3e-95f8-8978116d588d","block_type":"box","text":"applicable holding period requirements.","page_number":486,"box":{"x":116,"y":428,"width":298,"height":12}},{"id":"32092793-72c4-4c4f-b6ba-5266411d274b","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may","page_number":486,"box":{"x":117,"y":459,"width":728,"height":12}},{"id":"a5f652d2-01ab-43f4-875d-327936cdcb27","block_type":"box","text":"cause REIT investors to demand a higher annual yield, which may, in turn, cause a decline in the","page_number":486,"box":{"x":116,"y":475,"width":726,"height":12}},{"id":"18c6a6b3-e44b-4a4a-bc72-e59896381140","block_type":"box","text":"market price of the equity securities issued by a REIT. Rising interest rates also generally increase the","page_number":486,"box":{"x":117,"y":490,"width":764,"height":12}},{"id":"3e873c99-2f33-4c3b-890d-80267e5e1046","block_type":"box","text":"costs of obtaining financing, which could cause the value of a Fund’s REIT investments to decline.","page_number":486,"box":{"x":116,"y":506,"width":734,"height":12}},{"id":"952635fc-2dc0-4472-bca6-bfe75279050c","block_type":"box","text":"During periods when interest rates are declining, mortgages are often refinanced. Refinancing may","page_number":486,"box":{"x":117,"y":521,"width":738,"height":12}},{"id":"5af6afd0-e32c-49d2-bace-7a8c50899d12","block_type":"box","text":"reduce the yield on investments in mortgage REITs. In addition, since REITs depend on payment","page_number":486,"box":{"x":117,"y":537,"width":726,"height":12}},{"id":"33247bcb-786d-4e28-af63-a97a2be04d74","block_type":"box","text":"under their mortgage loans and leases to generate cash to make distributions to their shareholders,","page_number":486,"box":{"x":117,"y":552,"width":743,"height":12}},{"id":"8bd0fa23-0a1b-4e16-9e52-5f270df8f074","block_type":"box","text":"investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":486,"box":{"x":117,"y":568,"width":712,"height":12}},{"id":"388a0a1f-0a75-4522-84aa-72900b3d6ac8","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same","page_number":486,"box":{"x":117,"y":599,"width":741,"height":12}},{"id":"5f2fe98e-30c3-4c4c-846a-defaabe27387","block_type":"box","text":"risks as investing in other small capitalization companies. REITs may have limited financial resources,","page_number":486,"box":{"x":117,"y":614,"width":753,"height":12}},{"id":"d040ad8e-6258-4eb0-ba8b-113af5308e6c","block_type":"box","text":"and their securities may trade less frequently and in limited volume and may be subject to more abrupt","page_number":486,"box":{"x":116,"y":630,"width":758,"height":12}},{"id":"2ec936da-ddd3-4dde-8c45-0a70023a1670","block_type":"box","text":"or erratic price movements than larger company securities. Historically, small capitalization stocks, such","page_number":486,"box":{"x":116,"y":645,"width":768,"height":12}},{"id":"c04fa1f6-efa9-4c52-ba35-b820c8c1332b","block_type":"box","text":"as REITs, have been more volatile in price than the larger capitalization stocks such as those included","page_number":486,"box":{"x":116,"y":661,"width":750,"height":12}},{"id":"91919ec1-e907-4c20-a6bf-6329281e5df4","block_type":"box","text":"in the S&P 500 Index. The management of a REIT may be subject to conflicts of interest with respect to","page_number":486,"box":{"x":117,"y":676,"width":759,"height":12}},{"id":"fbf3c305-6bfa-4d0e-82de-ee02c5dd1a26","block_type":"box","text":"the operation of the business of the REIT and may be involved in real estate activities competitive with","page_number":486,"box":{"x":116,"y":692,"width":750,"height":12}},{"id":"2a47a9ee-dd5f-40c0-9155-ab9294459670","block_type":"box","text":"the REIT. REITs may own properties through joint ventures or in other circumstances in which the REIT","page_number":486,"box":{"x":116,"y":707,"width":761,"height":12}},{"id":"40157085-13c7-4f77-beb9-ede8b7a59c05","block_type":"box","text":"may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":486,"box":{"x":117,"y":723,"width":675,"height":12}},{"id":"1a4d0843-81a6-4192-b8a3-33a90c341736","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":486,"box":{"x":116,"y":754,"width":287,"height":9}},{"id":"61ff63d1-e38a-4dd6-bc9d-3a199e1e6452","block_type":"box","text":"Securities may decline in value due to factors affecting","page_number":486,"box":{"x":409,"y":754,"width":405,"height":12}},{"id":"2da598ae-50d3-42d5-85c3-d21f475526c9","block_type":"box","text":"securities markets generally or particular industries represented in the markets. The value of a security","page_number":486,"box":{"x":116,"y":769,"width":762,"height":12}},{"id":"53670041-8941-40c9-b0cd-ce4cf1ec9707","block_type":"box","text":"may decline due to general market conditions, economic trends or events that are not specifically","page_number":486,"box":{"x":117,"y":785,"width":720,"height":12}},{"id":"214711d0-d674-448b-b3f4-5256c3a584c2","block_type":"box","text":"related to a company or to factors that affect a particular industry or industries, or factors that affect a","page_number":486,"box":{"x":117,"y":800,"width":748,"height":12}},{"id":"bf182efd-0f2c-40f9-ba19-51f1d5512928","block_type":"box","text":"particular issuer or issuers, exchange, country, group of countries, region, market, industry, group of","page_number":486,"box":{"x":117,"y":816,"width":743,"height":12}},{"id":"889287e1-3fe0-4e78-b5a8-43acb40c8124","block_type":"box","text":"industries, sector or asset class. The success of a Fund’s activities could be affected by interest rates,","page_number":486,"box":{"x":117,"y":831,"width":761,"height":12}},{"id":"52eec041-93bd-4219-baca-44c3a6e22d9e","block_type":"box","text":"availability of credit, inflation rates, economic uncertainty, changes in laws, trade barriers, economic","page_number":486,"box":{"x":116,"y":847,"width":744,"height":12}},{"id":"8e47f3a7-d391-4675-960b-22d542281e4a","block_type":"box","text":"sanctions, currency exchange controls, and local, regional or global events such as war, acts of","page_number":486,"box":{"x":116,"y":862,"width":714,"height":12}},{"id":"5715644c-b1c1-4ba4-a1b2-510a7f983f5e","block_type":"box","text":"terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":486,"box":{"x":116,"y":878,"width":744,"height":12}},{"id":"d9f17283-43f4-440e-9f57-c682b39f087c","block_type":"box","text":"II-88","page_number":486,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"0f4eab6b-64ce-4b3c-9bf9-e65a339f9b50","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":486,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"67919229-d481-401f-af21-cd12e9c15164","block_type":"box","text":"issues, recessions, or other events could have a significant impact on a Fund and its investments.","page_number":487,"box":{"x":117,"y":87,"width":730,"height":12}},{"id":"4171ddc7-d81d-4b12-aa65-d8c86569eb72","block_type":"box","text":"During a general economic downturn in the securities markets, multiple asset classes may be","page_number":487,"box":{"x":117,"y":103,"width":698,"height":12}},{"id":"d98d53bd-e45b-4cb7-ae14-efacb5ee3d8d","block_type":"box","text":"negatively affected. These factors may affect the level and volatility of securities prices and the liquidity","page_number":487,"box":{"x":117,"y":118,"width":768,"height":12}},{"id":"cefd0d49-ef42-4c99-af71-a92b54e24e4f","block_type":"box","text":"of a Fund’s investments, which could impair the Fund’s profitability or result in losses. A Fund may","page_number":487,"box":{"x":116,"y":134,"width":734,"height":12}},{"id":"da0faef0-6301-4583-820d-6b586392e908","block_type":"box","text":"maintain substantial trading positions that can be adversely affected by the level of volatility in the","page_number":487,"box":{"x":117,"y":149,"width":728,"height":12}},{"id":"1d2f39a9-1055-4549-b162-dad31eb4c5a6","block_type":"box","text":"financial markets; the larger the positions, the greater the potential for loss. Unpredictable or unstable","page_number":487,"box":{"x":116,"y":165,"width":758,"height":12}},{"id":"d61d2e63-8ec2-462c-bcf5-3cbab8aa9970","block_type":"box","text":"market conditions may result in reduced opportunities to find suitable investments to deploy capital or","page_number":487,"box":{"x":117,"y":180,"width":756,"height":12}},{"id":"fce546e7-0fb8-470c-9abd-195e963d5a79","block_type":"box","text":"make it more difficult to exit and realize value","page_number":487,"box":{"x":117,"y":196,"width":339,"height":9}},{"id":"d04eb934-153d-4240-a056-7a5df5d9a22a","block_type":"box","text":"from a Fund’s existing investments. It is important to","page_number":487,"box":{"x":456,"y":196,"width":394,"height":12}},{"id":"e8909407-2ee1-48c8-b79e-86fb67df7d9b","block_type":"box","text":"understand that a Fund can incur material losses even if it reacts quickly to difficult market conditions","page_number":487,"box":{"x":117,"y":211,"width":754,"height":12}},{"id":"5f08f077-e531-4c6b-9ad9-f1e47991b506","block_type":"box","text":"and there can be no assurance that a Fund will not suffer material adverse effects from broad and","page_number":487,"box":{"x":116,"y":227,"width":732,"height":9}},{"id":"7a8a5967-e8ce-4a52-814e-a0f00c6f55f9","block_type":"box","text":"rapid changes in market conditions.","page_number":487,"box":{"x":117,"y":242,"width":268,"height":12}},{"id":"e46ab46f-408b-4947-82e6-b77e131fae75","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes","page_number":487,"box":{"x":117,"y":273,"width":759,"height":12}},{"id":"e450253c-b94f-49f5-b553-f1f2b499f6cb","block_type":"box","text":"limited to a particular sector or a geography, can occur. Some countries, including the United States,","page_number":487,"box":{"x":117,"y":289,"width":750,"height":12}},{"id":"14edcbd7-5769-4b3a-b124-fdf1107537a9","block_type":"box","text":"have adopted and/or are considering the adoption of more protectionist trade policies, a move away","page_number":487,"box":{"x":117,"y":304,"width":744,"height":12}},{"id":"a37d6e56-82c1-4854-b040-de2d1b9eccc6","block_type":"box","text":"from the tighter financial industry regulations that followed the financial crisis of 2008, and/or","page_number":487,"box":{"x":116,"y":320,"width":689,"height":12}},{"id":"59fa72dc-4c66-47a0-a78a-9a651adb7c76","block_type":"box","text":"substantially reducing corporate taxes. The exact shape of these policies is still being considered, but","page_number":487,"box":{"x":116,"y":335,"width":757,"height":12}},{"id":"7740076a-0a12-4083-869e-f2c387563f4d","block_type":"box","text":"the equity and debt markets may react strongly to expectations of change, which could increase","page_number":487,"box":{"x":116,"y":351,"width":717,"height":12}},{"id":"9955cadf-8ed6-4274-aec8-dcaf223caffe","block_type":"box","text":"volatility, especially if the market’s expectations are not borne out. A rise in protectionist trade policies,","page_number":487,"box":{"x":116,"y":366,"width":763,"height":12}},{"id":"24e81dce-ba15-484f-aba3-a9c15afc7c65","block_type":"box","text":"and the possibility of changes to some international trade agreements, could affect the economies of","page_number":487,"box":{"x":116,"y":382,"width":751,"height":12}},{"id":"a127ddfa-dcca-4305-90a3-b18bed77a7d2","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":487,"box":{"x":117,"y":397,"width":760,"height":12}},{"id":"8381b207-57ef-43e3-889c-76b7fa0e1db1","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies","page_number":487,"box":{"x":116,"y":413,"width":748,"height":12}},{"id":"8e0f18f3-b93e-4c31-9ccc-dd35e5e86f4b","block_type":"box","text":"and markets generally. Economies and financial markets throughout the world are increasingly","page_number":487,"box":{"x":116,"y":428,"width":707,"height":12}},{"id":"13a7f84f-7d54-4952-b7f3-4bbf407ed671","block_type":"box","text":"interconnected. As a result, whether or not a Fund invests in securities of issuers located in or with","page_number":487,"box":{"x":117,"y":444,"width":735,"height":11}},{"id":"9eb308a3-eaaa-4608-810a-2c2a0cbbf42c","block_type":"box","text":"significant exposure to countries experiencing economic, political and/or financial difficulties, the value","page_number":487,"box":{"x":116,"y":459,"width":762,"height":12}},{"id":"c24dd4eb-be70-4ff7-a35e-fdfb02d3b932","block_type":"box","text":"and liquidity of the Fund’s investments may be negatively affected by such events.","page_number":487,"box":{"x":116,"y":475,"width":616,"height":12}},{"id":"65c6c3bc-beb0-4c21-839e-0b1da9568d9e","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments","page_number":487,"box":{"x":117,"y":506,"width":754,"height":12}},{"id":"11166dc7-275b-4fc8-94d2-3b97ee3d6f9c","block_type":"box","text":"in which the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future","page_number":487,"box":{"x":117,"y":521,"width":742,"height":12}},{"id":"0bcf3525-e4b6-43ca-bb9a-9030865eed80","block_type":"box","text":"legislation or regulation or other governmental actions could limit or preclude the Fund’s abilities to","page_number":487,"box":{"x":117,"y":537,"width":727,"height":12}},{"id":"30ac5a7c-c956-4a06-bf8c-31fd6b5571d1","block_type":"box","text":"achieve its investment objectives or otherwise adversely impact an investment in the Fund. Recent","page_number":487,"box":{"x":116,"y":552,"width":730,"height":12}},{"id":"8890e3ae-fbc1-4aa9-9b95-ff828eb68e37","block_type":"box","text":"policy initiatives undertaken by the U.S. government have the potential to impact international relations,","page_number":487,"box":{"x":117,"y":568,"width":763,"height":12}},{"id":"9bffe8b7-9245-4be2-ae0a-ca1047be6acf","block_type":"box","text":"trade agreements and the overall regulatory environment in ways that could create uncertainty and","page_number":487,"box":{"x":116,"y":583,"width":730,"height":12}},{"id":"a22e16de-887b-4fdb-b289-e13ca27420f5","block_type":"box","text":"instability in domestic and global markets, and could adversely affect the investment performance of the","page_number":487,"box":{"x":117,"y":599,"width":766,"height":12}},{"id":"36c4a6c4-3dbb-45bb-adaf-b2aad045cead","block_type":"box","text":"Fund. In particular, actions taken by the U.S. government in respect of international trade relations could","page_number":487,"box":{"x":117,"y":614,"width":770,"height":12}},{"id":"c9e374d9-a445-4f7b-bbe1-0759e3e3f0c6","block_type":"box","text":"lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced foreign","page_number":487,"box":{"x":117,"y":630,"width":742,"height":12}},{"id":"40f7d203-de15-4807-8cb5-3eea1e955d0f","block_type":"box","text":"investment, and instability in regions where the Fund invests. Political and diplomatic events within the","page_number":487,"box":{"x":117,"y":645,"width":755,"height":12}},{"id":"48282668-7c61-46d5-9520-eef71ea1a03d","block_type":"box","text":"United States, including a contentious domestic political environment, changes in political party control","page_number":487,"box":{"x":117,"y":661,"width":750,"height":12}},{"id":"5d4f8706-f761-4908-9ad6-4b8a6264f3d9","block_type":"box","text":"of one or more branches of the U.S. Government, the U.S. Government’s inability at times to agree on a","page_number":487,"box":{"x":116,"y":676,"width":764,"height":12}},{"id":"2a8212b1-918c-4c98-aa1c-05fc263f4cbd","block_type":"box","text":"long-term budget and deficit reduction plan, the threat of a U.S. Government shutdown, and","page_number":487,"box":{"x":117,"y":692,"width":672,"height":12}},{"id":"f3c5f9cc-3a5f-4927-a543-ca1a35a97079","block_type":"box","text":"disagreements over, or threats not to increase, the U.S. Government’s borrowing limit (or “debt ceiling”),","page_number":487,"box":{"x":116,"y":707,"width":763,"height":12}},{"id":"7064b91e-0828-4035-baad-4ec9597ee8a5","block_type":"box","text":"as well as political and diplomatic events abroad, may affect investor and consumer confidence and","page_number":487,"box":{"x":116,"y":723,"width":731,"height":12}},{"id":"c6677aa1-7199-44a7-a14d-f85aef8407f2","block_type":"box","text":"may adversely impact financial markets and the broader economy, perhaps suddenly and to a","page_number":487,"box":{"x":117,"y":738,"width":689,"height":12}},{"id":"be6a8326-f7e2-4eee-a420-a54e9feb3d41","block_type":"box","text":"significant degree. A downgrade of the ratings of U.S. Government debt obligations, or concerns about","page_number":487,"box":{"x":116,"y":754,"width":754,"height":12}},{"id":"278b1bc5-80e5-41d7-a15e-14426bab4c11","block_type":"box","text":"the U.S. Government’s credit quality in general, could have a substantial negative effect on the U.S. and","page_number":487,"box":{"x":116,"y":769,"width":764,"height":12}},{"id":"b66354c8-3fc2-4bf7-a508-dbf24d25f6ee","block_type":"box","text":"global economies. For example, concerns about the U.S. Government’s credit quality may cause","page_number":487,"box":{"x":116,"y":785,"width":710,"height":12}},{"id":"0b5ce30b-3574-42a4-b514-89db9913f90c","block_type":"box","text":"increased volatility in the stock and bond markets, higher interest rates, reduced prices and liquidity of","page_number":487,"box":{"x":117,"y":800,"width":748,"height":12}},{"id":"169a6e3c-7add-43d3-9a95-cbb9d4b85e0a","block_type":"box","text":"U.S. Treasury securities, and/or increased costs of various kinds of debt. Moreover, although the U.S.","page_number":487,"box":{"x":117,"y":816,"width":745,"height":12}},{"id":"c57676c4-1b9d-4e6c-9386-d49cfd502b52","block_type":"box","text":"Government has honored its credit obligations, there remains a possibility that the United States could","page_number":487,"box":{"x":117,"y":831,"width":754,"height":12}},{"id":"cee05a6c-966e-41d2-b5e9-f67fdf9a40b1","block_type":"box","text":"default on its obligations. The consequences of such an unprecedented event are impossible to predict,","page_number":487,"box":{"x":116,"y":847,"width":765,"height":12}},{"id":"c5666f6f-e6ea-4551-b69e-944abef3de85","block_type":"box","text":"but it is likely that a default by the United States would be highly disruptive to the U.S. and global","page_number":487,"box":{"x":117,"y":862,"width":714,"height":12}},{"id":"8d5888fd-1f6a-4563-a30d-4c969d9ebc95","block_type":"box","text":"securities markets and could significantly impair the value of the Fund’s investments.","page_number":487,"box":{"x":116,"y":878,"width":627,"height":12}},{"id":"a7941803-a1e3-47c7-8f76-332154ea033c","block_type":"box","text":"II-89","page_number":487,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"3d4b9e8c-315a-488f-87e4-b0c93e894ed6","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":487,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"997d76ea-778d-4d59-9da5-8db47fd16335","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures,","page_number":488,"box":{"x":116,"y":87,"width":761,"height":12}},{"id":"e18d2ffe-ee18-4910-9834-40c0c12aab00","block_type":"box","text":"declines in global financial markets, higher default rates, supply chain disruptions, and a substantial","page_number":488,"box":{"x":116,"y":102,"width":743,"height":13}},{"id":"6b61c5f6-8fb8-4f6b-bd6d-655c9b1a6d58","block_type":"box","text":"economic downturn in economies throughout the world. The impact of this coronavirus, and other","page_number":488,"box":{"x":116,"y":118,"width":727,"height":12}},{"id":"8c7b6d5f-2a12-405e-9504-38e547bb37f9","block_type":"box","text":"epidemics and pandemics that may arise in the future, could affect the economies of many nations,","page_number":488,"box":{"x":116,"y":134,"width":741,"height":12}},{"id":"d4f93ae7-4739-4b48-9869-088a96174b80","block_type":"box","text":"individual companies and the market in general in ways that cannot necessarily be foreseen at the","page_number":488,"box":{"x":117,"y":149,"width":733,"height":12}},{"id":"a6e143f7-9377-41bf-8758-7be2dab94718","block_type":"box","text":"present time. These health crises may be short term or long term, and may exacerbate other pre","page_number":488,"box":{"x":117,"y":165,"width":721,"height":12}},{"id":"227ad757-82d5-4621-b019-c355e1491d94","block_type":"box","text":"existing political, social and economic risks, disrupt normal market conditions and operations, and","page_number":488,"box":{"x":116,"y":180,"width":729,"height":12}},{"id":"ad369ba3-96b4-4e5d-bbfb-dd82b1fe2280","block_type":"box","text":"negatively impact performance. In addition, the impact of infectious diseases in emerging developing or","page_number":488,"box":{"x":117,"y":196,"width":771,"height":12}},{"id":"1b771316-6c30-433c-bc6e-5c0d750b58b9","block_type":"box","text":"emerging market countries may be greater due to less established health care systems.","page_number":488,"box":{"x":116,"y":211,"width":657,"height":12}},{"id":"976c8502-52ab-4458-87d5-8f3ba84c4c2d","block_type":"box","text":"Legal and Regulatory Risks","page_number":488,"box":{"x":116,"y":242,"width":205,"height":12}},{"id":"750d0508-8818-4e1d-b6c9-1540f9032096","block_type":"box","text":". The Manager is part of a larger firm with multiple business lines active in","page_number":488,"box":{"x":323,"y":242,"width":550,"height":12}},{"id":"b41f55a3-e516-4efd-86b4-ceed14328bef","block_type":"box","text":"multiple jurisdictions that are governed by a multitude of legal systems and regulatory regimes, some","page_number":488,"box":{"x":117,"y":258,"width":753,"height":12}},{"id":"14388c5c-4b08-4453-a559-c5298546039e","block_type":"box","text":"of which are new and evolving. As a result, the Funds and the Manager and its affiliates are subject to","page_number":488,"box":{"x":116,"y":273,"width":761,"height":12}},{"id":"088d6433-f99c-4cba-9986-b3ea4ab7522c","block_type":"box","text":"extensive and sophisticated legal, tax and regulatory risks, including changing laws and regulations,","page_number":488,"box":{"x":116,"y":289,"width":746,"height":12}},{"id":"f138806f-8b77-4351-9767-ea0c01700ada","block_type":"box","text":"developing interpretations of such laws and regulations, as well as existing laws, and increased","page_number":488,"box":{"x":116,"y":304,"width":712,"height":12}},{"id":"763bfa91-5a66-45ab-aa72-3a17f4d2a9e0","block_type":"box","text":"scrutiny by regulators and law enforcement authorities. Unexpected economic, political, regulatory and","page_number":488,"box":{"x":116,"y":320,"width":766,"height":12}},{"id":"5339e06b-b61c-4e5f-8ff8-5f9d3b7cee3d","block_type":"box","text":"diplomatic events within the United States and abroad can trigger new and complex regulations that","page_number":488,"box":{"x":116,"y":335,"width":745,"height":12}},{"id":"31c96fe7-1ed7-4629-9dba-7c4836d25ec1","block_type":"box","text":"the Manager and/or the Funds may need to comply with. The implementation of changes to comply","page_number":488,"box":{"x":116,"y":351,"width":742,"height":12}},{"id":"b46ac147-0dd6-4806-9fce-a5f6cbb0a3d1","block_type":"box","text":"with current and/or new regulations applicable to the Funds and/or the Manager could have a material","page_number":488,"box":{"x":116,"y":366,"width":761,"height":12}},{"id":"fc4438d6-90f8-4c57-9a29-ec11e5edbd27","block_type":"box","text":"adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit","page_number":488,"box":{"x":116,"y":382,"width":712,"height":12}},{"id":"f101f814-be2f-4115-bd44-a1d33c435766","block_type":"box","text":"margins, reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":488,"box":{"x":117,"y":397,"width":762,"height":12}},{"id":"df886d58-3cb7-4944-8d7f-015aaed07d01","block_type":"box","text":"Tariff and Trade Policy Risks","page_number":488,"box":{"x":118,"y":428,"width":213,"height":12}},{"id":"d0a1abb9-bd9a-46bb-bb52-53990b2ecd58","block_type":"box","text":".","page_number":488,"box":{"x":331,"y":436,"width":3,"height":1}},{"id":"3c19e87f-5543-4533-88e6-afbf69f8618a","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist","page_number":488,"box":{"x":335,"y":428,"width":518,"height":12}},{"id":"057cf5af-1fba-44f7-b981-6fdf726c9fa4","block_type":"box","text":"trade policies. The U.S. government recently altered its approach to international trade policy, resulting","page_number":488,"box":{"x":116,"y":444,"width":768,"height":12}},{"id":"3578a9a7-9a1e-482a-95e7-6b6d42358ad0","block_type":"box","text":"in significant impacts on international trade relations, certain tax and immigration policies, and other","page_number":488,"box":{"x":117,"y":459,"width":742,"height":12}},{"id":"c26732d6-2c00-4b20-b005-65abef96c7c6","block_type":"box","text":"aspects of the national and international political and financial landscape. The rise in protectionist trade","page_number":488,"box":{"x":116,"y":475,"width":769,"height":12}},{"id":"bbe9f8fc-b428-477f-89e7-b4df979599f0","block_type":"box","text":"policies, slowing economic growth, changes to some major international trade agreements, risks","page_number":488,"box":{"x":117,"y":490,"width":718,"height":12}},{"id":"9bdb984d-dc9a-4681-9d41-c3ce35743595","block_type":"box","text":"associated with trade agreements between the U.S. and the European Union, and the risks associated","page_number":488,"box":{"x":116,"y":506,"width":767,"height":12}},{"id":"d5f4afb1-89b5-42ab-a55f-bcfc2bad452f","block_type":"box","text":"with trade negotiations between the U.S. and China, could affect the economies of many nations in","page_number":488,"box":{"x":116,"y":521,"width":739,"height":12}},{"id":"7658f051-6c95-43ae-b266-61057078fb27","block_type":"box","text":"ways that cannot necessarily be foreseen at the present time.","page_number":488,"box":{"x":116,"y":537,"width":462,"height":12}},{"id":"5596410f-563f-45ea-b554-18487d5488c7","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together","page_number":488,"box":{"x":117,"y":568,"width":759,"height":12}},{"id":"7f0b20ea-81d1-4d67-ae5b-eb519c062ebb","block_type":"box","text":"with any future downturns in the global economy resulting therefrom, could adversely affect the","page_number":488,"box":{"x":116,"y":583,"width":710,"height":12}},{"id":"76a2b126-a27c-4f15-8ed9-a9a26408c795","block_type":"box","text":"financial performance of a Fund and its investments. Trade policy may be an ongoing source of","page_number":488,"box":{"x":116,"y":599,"width":713,"height":12}},{"id":"5f61e6bc-57a6-4d72-8adc-b6e3b4a7fdd0","block_type":"box","text":"instability, potentially resulting in significant currency fluctuations and/or having other adverse effects","page_number":488,"box":{"x":117,"y":614,"width":751,"height":12}},{"id":"c6c912f5-4af0-4388-b770-8b549b132a72","block_type":"box","text":"on international markets, international trade agreements, and/or other existing cross-border","page_number":488,"box":{"x":116,"y":630,"width":683,"height":12}},{"id":"560151ae-ca5c-41c7-a796-0c992a1cf2ac","block_type":"box","text":"cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or otherwise). To the extent","page_number":488,"box":{"x":116,"y":645,"width":771,"height":12}},{"id":"ed5c566f-7f24-417e-b0ad-11cb86fd9d8e","block_type":"box","text":"trade disputes escalate globally, there could be additional significant impacts on the sectors or","page_number":488,"box":{"x":116,"y":661,"width":700,"height":12}},{"id":"06dffe33-218c-4a59-b1b1-f20f47d6119b","block_type":"box","text":"industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":488,"box":{"x":117,"y":676,"width":703,"height":12}},{"id":"217e3226-2437-40ec-9f36-d50a6b6aa0db","block_type":"box","text":"Geographic Risks","page_number":488,"box":{"x":117,"y":707,"width":131,"height":12}},{"id":"1deecdb5-95c3-4a6f-84b8-d9e0f473ce75","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise","page_number":488,"box":{"x":250,"y":707,"width":616,"height":12}},{"id":"731f8844-e447-461d-b6cd-577ffe3f90cf","block_type":"box","text":"connected to, parts of the world affected by natural disasters such as severe heat, earthquakes,","page_number":488,"box":{"x":116,"y":723,"width":711,"height":12}},{"id":"d0076201-4178-4733-96e7-da23c48e2ab3","block_type":"box","text":"tornadoes, volcanic eruptions, wildfires, droughts, floods, hurricanes or tsunamis, and are economically","page_number":488,"box":{"x":116,"y":738,"width":766,"height":12}},{"id":"51f45263-8974-4ed7-a5cc-8c23e8f5ace1","block_type":"box","text":"sensitive to environmental events. In addition, issuers may be impacted by security concerns with","page_number":488,"box":{"x":116,"y":754,"width":723,"height":12}},{"id":"a57698fe-e0c7-4dc6-a74d-c332f622ed93","block_type":"box","text":"respect to a country or region, such as war and other types of conflict, terrorism, strained international","page_number":488,"box":{"x":117,"y":769,"width":754,"height":12}},{"id":"74013291-cc3c-43f2-893a-0a30e9df243b","block_type":"box","text":"relations and territorial disputes. Any of these events may adversely affect the issuers, markets and","page_number":488,"box":{"x":117,"y":785,"width":736,"height":12}},{"id":"27d65c4a-0fbc-4903-b85e-9baf34a0bdd3","block_type":"box","text":"economies to which a Fund is exposed, which may adversely affect the value of the Fund.","page_number":488,"box":{"x":116,"y":800,"width":667,"height":12}},{"id":"c4b83415-7852-456d-8070-4d6421a087f1","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":488,"box":{"x":116,"y":831,"width":275,"height":12}},{"id":"a3b994ce-192c-4b8c-be4b-e2b29dc21c43","block_type":"box","text":"The London Interbank Offered Rate (“LIBOR”) had historically","page_number":488,"box":{"x":393,"y":831,"width":469,"height":12}},{"id":"17481191-e584-4ba3-844c-57a1a0ebe1d3","block_type":"box","text":"been used extensively in the U.S. and globally as a “benchmark” or “reference rate” for various","page_number":488,"box":{"x":117,"y":847,"width":707,"height":12}},{"id":"50f841d2-cc6f-4045-82d5-6f58227c101b","block_type":"box","text":"commercial and financial contracts, including corporate and municipal bonds, bank loans, asset","page_number":488,"box":{"x":116,"y":862,"width":714,"height":12}},{"id":"ba620158-449f-4476-a662-c0d550c25106","block_type":"box","text":"backed and mortgage-related securities, interest rate swaps and other derivatives. Instruments in","page_number":488,"box":{"x":117,"y":878,"width":726,"height":12}},{"id":"4b34b2b3-b91a-43a2-b168-a8ca7f466d77","block_type":"box","text":"II-90","page_number":488,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"fcd0ca1d-3ce5-4a47-a170-e66cc8ffa65b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":488,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"6ebcfaac-9e75-444b-b4ba-91282976c7b2","block_type":"box","text":"which a Fund may have historically paid interest at floating rates based on LIBOR or may have been","page_number":489,"box":{"x":116,"y":87,"width":750,"height":12}},{"id":"2b350910-dbf3-4709-84f7-ff3a4524521d","block_type":"box","text":"subject to interest caps or floors based on LIBOR. The Funds and issuers of instruments in which a","page_number":489,"box":{"x":116,"y":102,"width":742,"height":13}},{"id":"39340054-5726-43af-a1a5-8747a271eed9","block_type":"box","text":"Fund invests may have also historically obtained financing at floating rates based on LIBOR. In","page_number":489,"box":{"x":117,"y":118,"width":709,"height":12}},{"id":"ddd62cce-aae3-4b03-82e6-693ed738cc24","block_type":"box","text":"connection with the global transition away from LIBOR led by regulators and market participants as a","page_number":489,"box":{"x":116,"y":134,"width":754,"height":12}},{"id":"441a5c1a-eedb-4416-bda5-daffb51f0499","block_type":"box","text":"result of benchmark reforms, LIBOR was last published on a representative basis at the end of June","page_number":489,"box":{"x":117,"y":149,"width":748,"height":12}},{"id":"e82f7482-6c55-4858-81aa-0bc23e943dc2","block_type":"box","text":"2023. Alternative reference rates to LIBOR have been established in most major currencies and","page_number":489,"box":{"x":116,"y":165,"width":717,"height":12}},{"id":"421d9adb-1355-405a-9be9-9b33b3a27b29","block_type":"box","text":"markets in these alternative rates are continuing to develop (","page_number":489,"box":{"x":117,"y":180,"width":449,"height":12}},{"id":"19681965-5736-4287-a27a-3e37b54610ca","block_type":"box","text":"e.g.","page_number":489,"box":{"x":568,"y":183,"width":25,"height":9}},{"id":"2207b119-ec2b-4be3-ae30-4c00a88fed10","block_type":"box","text":", the Secured Overnight Financing","page_number":489,"box":{"x":596,"y":180,"width":259,"height":12}},{"id":"4086ad02-8f05-4832-ada5-33cddbdb68aa","block_type":"box","text":"Rate (“SOFR”) for USD-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual","page_number":489,"box":{"x":117,"y":196,"width":771,"height":12}},{"id":"1df749ef-49ee-41c7-ad5d-fcf05b23f376","block_type":"box","text":"risks associated with the transition may remain that may impact markets or particular investments and,","page_number":489,"box":{"x":117,"y":211,"width":765,"height":12}},{"id":"b09607f6-8bb9-4f8e-ae96-c36011e9380f","block_type":"box","text":"as such, the full impact of the transition on the Funds or the financial instruments in which the Funds","page_number":489,"box":{"x":116,"y":227,"width":749,"height":11}},{"id":"532f997a-f1d4-45a6-8cd2-f0046ea135d1","block_type":"box","text":"invest cannot yet be fully determined.","page_number":489,"box":{"x":117,"y":242,"width":281,"height":12}},{"id":"df02772b-e529-4582-8c20-428e68e397b1","block_type":"box","text":"SOFR is intended to be a broad measure of the cost of borrowing funds overnight in transactions that","page_number":489,"box":{"x":116,"y":273,"width":757,"height":12}},{"id":"87df400c-a3b3-457c-b09d-23f50583f166","block_type":"box","text":"are collateralized by U.S. Treasury securities . SOFR is calculated based on transaction-level repo","page_number":489,"box":{"x":116,"y":289,"width":736,"height":12}},{"id":"1ac47f43-0891-4cdd-a728-08ec5f791cd6","block_type":"box","text":"data collected from various sources. For each trading day, SOFR is calculated as a volume-weighted","page_number":489,"box":{"x":116,"y":304,"width":755,"height":12}},{"id":"42419533-f657-4b48-9ef1-ffb0d1b29071","block_type":"box","text":"median rate derived from such data. Because SOFR is a financing rate based on overnight secured","page_number":489,"box":{"x":117,"y":320,"width":744,"height":12}},{"id":"6dfbffd1-706d-422d-8326-13ef69ec2b96","block_type":"box","text":"funding transactions, it differs fundamentally from LIBOR. LIBOR is intended to be an unsecured rate","page_number":489,"box":{"x":116,"y":335,"width":755,"height":12}},{"id":"c18b3207-2574-4ad5-b00f-29741e71f0e8","block_type":"box","text":"that represents interbank funding costs for different short-term maturities or tenors. It is a forward","page_number":489,"box":{"x":116,"y":351,"width":726,"height":12}},{"id":"bcd6d5da-85ec-4e22-bd32-9cf8f49ea372","block_type":"box","text":"looking rate reflecting expectations regarding interest rates for the applicable tenor. Thus, LIBOR is","page_number":489,"box":{"x":117,"y":366,"width":740,"height":12}},{"id":"f0b7550e-bd1b-4408-8dea-9e5879a393f6","block_type":"box","text":"intended to be sensitive, in certain respects, to bank credit risk and to term interest rate risk. In","page_number":489,"box":{"x":117,"y":382,"width":706,"height":12}},{"id":"842a8030-b451-4651-bb25-f66d6afb9c5f","block_type":"box","text":"contrast, SOFR is a secured overnight rate reflecting the credit of U.S. Treasury securities as","page_number":489,"box":{"x":116,"y":397,"width":696,"height":12}},{"id":"f7c82747-8733-4a4b-b597-bec87c2f621a","block_type":"box","text":"collateral. Thus, it is largely insensitive to credit-risk considerations and to short-term interest rate risks.","page_number":489,"box":{"x":116,"y":413,"width":771,"height":12}},{"id":"aa4f33ed-16d8-4a14-8da0-baa2988f26ce","block_type":"box","text":"SOFR is a transaction-based rate, and it has been more volatile than other benchmark or market rates,","page_number":489,"box":{"x":116,"y":428,"width":770,"height":11}},{"id":"8e121231-8bc8-4e3d-aa51-3c5cfc2b99a5","block_type":"box","text":"such as three-month LIBOR, during certain periods. For these reasons, among others, there is no","page_number":489,"box":{"x":116,"y":444,"width":730,"height":12}},{"id":"a070a103-8339-4765-81b0-230428a60cab","block_type":"box","text":"assurance that SOFR, or rates derived from SOFR, will perform in the same or similar way as LIBOR","page_number":489,"box":{"x":116,"y":459,"width":755,"height":12}},{"id":"49d8046a-81e5-4fb3-a666-ae9230a9d952","block_type":"box","text":"would have performed at any time, and there is no assurance that SOFR-based rates will be a suitable","page_number":489,"box":{"x":116,"y":475,"width":767,"height":12}},{"id":"fac25296-4da2-4db3-967f-3f186978e997","block_type":"box","text":"substitute for LIBOR. SOFR has a relatively limited history, having been first published in April 2018.","page_number":489,"box":{"x":116,"y":490,"width":749,"height":12}},{"id":"58b4876f-5050-4861-a282-9946f43e526f","block_type":"box","text":"The future performance of SOFR, and SOFR-based reference rates, cannot be predicted based on","page_number":489,"box":{"x":116,"y":506,"width":740,"height":12}},{"id":"6f69c812-35b2-4a12-a65f-a5a518639a16","block_type":"box","text":"SOFR’s history or otherwise. Levels of SOFR in the future may bear little or no relation to historical","page_number":489,"box":{"x":116,"y":521,"width":738,"height":12}},{"id":"3d5d96ef-3640-43a0-b004-c4f0b7339dbf","block_type":"box","text":"levels of SOFR, LIBOR or other rates. There can also be no assurance that SOFR will not be","page_number":489,"box":{"x":117,"y":537,"width":695,"height":11}},{"id":"a147238a-56f5-48cb-a371-609e9224ac9e","block_type":"box","text":"discontinued or fundamentally altered in a manner that is materially adverse to the interests of the","page_number":489,"box":{"x":116,"y":552,"width":731,"height":12}},{"id":"2473ffbc-a817-4ec6-a16b-571132808eca","block_type":"box","text":"Fund.","page_number":489,"box":{"x":117,"y":568,"width":46,"height":9}},{"id":"46265b5e-28e0-412f-9f54-b76f808548e0","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have","page_number":489,"box":{"x":117,"y":599,"width":768,"height":12}},{"id":"4dd9957a-7ae2-48d8-8556-022a91b01a88","block_type":"box","text":"been the subject of ongoing national and international regulatory reform, including under the European","page_number":489,"box":{"x":117,"y":614,"width":765,"height":12}},{"id":"dcd383b6-3551-4b2d-92a2-378de2864500","block_type":"box","text":"Union (“EU”) regulation on indices used as benchmarks in financial instruments and financial contracts","page_number":489,"box":{"x":117,"y":630,"width":765,"height":12}},{"id":"81d72161-289e-48f1-82db-8440d4b7a0c6","block_type":"box","text":"(known as the “Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United","page_number":489,"box":{"x":117,"y":645,"width":754,"height":12}},{"id":"eab7f554-73bf-401f-b834-198d7ea8f386","block_type":"box","text":"Kingdom (“UK”) law by virtue of the EU (Withdrawal) Act 2018 (as amended), subject to amendments","page_number":489,"box":{"x":117,"y":661,"width":750,"height":12}},{"id":"95f1f6d1-e5b3-4ccb-b8fe-5705d4af0a9c","block_type":"box","text":"made by the Benchmarks (Amendment and Transitional Provision) (EU Exit) Regulations 2019 (SI","page_number":489,"box":{"x":117,"y":676,"width":727,"height":12}},{"id":"e3c0dfcc-0d17-476b-bdfd-ee73a209a4b6","block_type":"box","text":"2019/657) and other statutory instruments. Following the implementation of these reforms, the manner","page_number":489,"box":{"x":116,"y":692,"width":761,"height":12}},{"id":"03ebc834-50c6-4c07-9771-f2c572f3a758","block_type":"box","text":"of administration of benchmarks has changed and may further change in the future, with the result that","page_number":489,"box":{"x":116,"y":707,"width":762,"height":12}},{"id":"d2cb745c-2471-4985-8239-1a345d224f6b","block_type":"box","text":"relevant benchmarks may perform differently than in the past, the use of benchmarks that are not","page_number":489,"box":{"x":117,"y":723,"width":721,"height":12}},{"id":"a00dd50b-21af-403f-9bf5-d6c86e8b4ce8","block_type":"box","text":"compliant with the new standards by certain supervised entities may be restricted, and certain","page_number":489,"box":{"x":116,"y":738,"width":696,"height":12}},{"id":"5b386617-2d26-4cb8-b3ab-eb40296c9bad","block_type":"box","text":"benchmarks may be eliminated entirely. Such changes could cause increased market volatility and","page_number":489,"box":{"x":117,"y":754,"width":731,"height":12}},{"id":"6b3298ac-2d10-4f1a-ad24-e61d83337455","block_type":"box","text":"disruptions in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally,","page_number":489,"box":{"x":116,"y":769,"width":743,"height":12}},{"id":"64c85298-e682-4c23-9eb3-2373939e383c","block_type":"box","text":"there could be other consequences which cannot be predicted.","page_number":489,"box":{"x":116,"y":785,"width":466,"height":12}},{"id":"cd21d344-496c-4311-82c6-8e38acfa1500","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":489,"box":{"x":116,"y":816,"width":456,"height":12}},{"id":"b1461249-13c1-4f87-94ee-19549132c595","block_type":"box","text":"Under repurchase agreements and","page_number":489,"box":{"x":578,"y":816,"width":249,"height":12}},{"id":"2bb34ac5-7035-48af-b97c-3969c4804061","block_type":"box","text":"purchase and sale contracts, the other party agrees","page_number":489,"box":{"x":117,"y":831,"width":366,"height":12}},{"id":"8c3ac41f-187e-415f-852b-b7873fc31398","block_type":"box","text":", upon entering into the contract with a Fund, to","page_number":489,"box":{"x":485,"y":831,"width":339,"height":12}},{"id":"ed9f78af-bdee-412f-99b6-725830154bf6","block_type":"box","text":"repurchase a security sold to the Fund at a mutua","page_number":489,"box":{"x":117,"y":847,"width":353,"height":12}},{"id":"a15e8467-5730-4491-a653-d2b2b66ea9ff","block_type":"box","text":"lly agreed-upon time and price in a specified currency,","page_number":489,"box":{"x":471,"y":847,"width":388,"height":12}},{"id":"048e918a-50fb-48fb-8b21-5e55a4dad493","block_type":"box","text":"thereby determining the yield dur","page_number":489,"box":{"x":116,"y":862,"width":234,"height":12}},{"id":"81c963b4-dbaa-41f4-aeaa-a829644f2d68","block_type":"box","text":"ing the term of the agreement.","page_number":489,"box":{"x":351,"y":862,"width":219,"height":12}},{"id":"ac6e2874-ad10-4de9-818b-f5bf9dc58cc5","block_type":"box","text":"II-91","page_number":489,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"39af26d8-727e-40e9-8bd7-4c86814acb1e","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":489,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"763556e1-3f95-45a7-a501-51d7c5e2e4f1","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements","page_number":490,"box":{"x":116,"y":87,"width":751,"height":12}},{"id":"ea0b5a16-8ccc-4371-9a41-1afde4620ab2","block_type":"box","text":"stipulate that securities are owned by the Fund and the purchaser receives any interest on the security","page_number":490,"box":{"x":116,"y":103,"width":766,"height":12}},{"id":"3e5a8cc1-c272-4752-b6c6-b3637383947b","block_type":"box","text":"paid during the period. In the case of repurchase agreements, the prices at which the trades are","page_number":490,"box":{"x":117,"y":118,"width":717,"height":12}},{"id":"5c54f19a-b4fc-44b5-8bc6-323189f45f74","block_type":"box","text":"conducted do not reflect accrued interest on the underlying obligation; whereas, in the case of","page_number":490,"box":{"x":116,"y":134,"width":701,"height":12}},{"id":"043df26f-b035-496b-b8e9-51cedfd2c7da","block_type":"box","text":"purchase and sale contracts, the prices take into account accrued interest. A Fund may enter into","page_number":490,"box":{"x":117,"y":149,"width":728,"height":12}},{"id":"2507e7d4-9869-41ac-8d17-3f0b28d299b4","block_type":"box","text":"“tri-party” repurchase agreements. In “tri-party” repurchase agreements, an unaffiliated third-party","page_number":490,"box":{"x":116,"y":165,"width":729,"height":12}},{"id":"940068c1-b950-4f13-8694-e7d48756998a","block_type":"box","text":"custodian maintains accounts to hold collateral for the Fund and its counterparties and, therefore, the","page_number":490,"box":{"x":116,"y":180,"width":756,"height":12}},{"id":"00d70b62-b620-4850-9c7c-204aed38671b","block_type":"box","text":"Fund may be subject to the credit risk of those custodians.","page_number":490,"box":{"x":117,"y":196,"width":438,"height":12}},{"id":"0759910e-de1c-4da9-92c3-a2f55ba19539","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate","page_number":490,"box":{"x":116,"y":227,"width":758,"height":12}},{"id":"edf1fbd1-99ae-4d9d-bcb4-1bef430826ee","block_type":"box","text":"of return insulated from market fluctuations during the term of the agreement, although such return","page_number":490,"box":{"x":116,"y":242,"width":737,"height":12}},{"id":"391ee477-1e99-4b55-90c6-a53d70b5dd10","block_type":"box","text":"may be affected by currency fluctuations. However, in the event of a default under a repurchase","page_number":490,"box":{"x":117,"y":258,"width":716,"height":12}},{"id":"6f78319c-bc59-4a9c-8fb0-56a95e076ca5","block_type":"box","text":"agreement or under a purchase and sale contract, instead of the contractual fixed rate, the rate of","page_number":490,"box":{"x":116,"y":273,"width":730,"height":12}},{"id":"8f25b77a-c830-4dbe-8b7f-c5565ab7057c","block_type":"box","text":"return to the Fund would be dependent upon intervening fluctuations of the market values of the","page_number":490,"box":{"x":117,"y":289,"width":716,"height":12}},{"id":"b51b23b1-bfd0-4944-bf1a-18bd2c71730f","block_type":"box","text":"securities underlying the contract and the accrued interest on those securities. In such event, the Fund","page_number":490,"box":{"x":116,"y":304,"width":766,"height":12}},{"id":"a7675cef-cf50-4b1f-b431-11d2ee91fc7c","block_type":"box","text":"would have rights against the seller for breach of contract with respect to any losses arising from","page_number":490,"box":{"x":116,"y":320,"width":721,"height":12}},{"id":"e6f06c8d-7466-4aa7-be0e-83e68f17acde","block_type":"box","text":"market fluctuations following the default.","page_number":490,"box":{"x":117,"y":335,"width":303,"height":12}},{"id":"edcbe28e-b5d7-41d2-bb14-057263e8854c","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may","page_number":490,"box":{"x":117,"y":366,"width":747,"height":12}},{"id":"a048bb45-33a8-43c4-85a0-92d5ebc3aa9b","block_type":"box","text":"have longer terms, and may be construed to be collateralized loans by the purchaser to the seller","page_number":490,"box":{"x":117,"y":382,"width":718,"height":12}},{"id":"7b9ce147-1cee-49ba-b142-13b37fb23f71","block_type":"box","text":"secured by the securities transferred to the purchaser. In the case of a repurchase agreement, as a","page_number":490,"box":{"x":116,"y":397,"width":735,"height":12}},{"id":"dc9fee42-10a8-4dd9-9528-526dd85b6df3","block_type":"box","text":"purchaser, a Fund’s Manager or sub-adviser will monitor the creditworthiness of the seller, and a Fund","page_number":490,"box":{"x":117,"y":413,"width":756,"height":12}},{"id":"723dd392-b7c9-45d1-a5f9-0269a3fa93a5","block_type":"box","text":"will require the seller to provide additional collateral if the market value of the securities falls below the","page_number":490,"box":{"x":116,"y":428,"width":753,"height":12}},{"id":"2cff414f-535a-4187-8e13-f2fd85990180","block_type":"box","text":"repurchase price at any time during the term of the repurchase agreement. The Fund does not have this","page_number":490,"box":{"x":117,"y":444,"width":769,"height":12}},{"id":"0ff300f2-05a7-45b3-bc16-b75be1345e30","block_type":"box","text":"right to seek additional collateral as a purchaser in the case of purchase and sale contracts. The Fund’s","page_number":490,"box":{"x":117,"y":459,"width":765,"height":12}},{"id":"ab2a08cb-9a3e-4fd9-87e2-6424a994dfe5","block_type":"box","text":"Manager or sub-adviser will mark-to-market daily the value of the securities. Securities subject to","page_number":490,"box":{"x":117,"y":475,"width":715,"height":12}},{"id":"b08e599c-b181-4ce8-acc1-fd1a9138d9ff","block_type":"box","text":"repurchase agreements (other than tri-party repurchase agreements) and purchase and sale contracts","page_number":490,"box":{"x":117,"y":490,"width":757,"height":12}},{"id":"f3ca017e-4f85-42d0-bef0-8f98748b720e","block_type":"box","text":"will be held by the Fund’s custodian (or sub-custodian) in the Federal Reserve/Treasury book-entry","page_number":490,"box":{"x":116,"y":506,"width":733,"height":12}},{"id":"592c1848-5d75-4d0c-9816-f5cbffe5cd39","block_type":"box","text":"system or by another authorized securities depository.","page_number":490,"box":{"x":116,"y":521,"width":403,"height":12}},{"id":"2b7def13-46ad-43c1-b6d7-3ba57a1eed0e","block_type":"box","text":"In the event of default by the seller under a repurchase agreement construed to be a collateralized loan,","page_number":490,"box":{"x":117,"y":552,"width":750,"height":12}},{"id":"6d8a9a97-93f8-4d53-9b73-7436217939f2","block_type":"box","text":"the underlying securities are not owned by the Fund but only constitute collateral for the seller’s obligation","page_number":490,"box":{"x":116,"y":568,"width":763,"height":12}},{"id":"b100110c-7b9a-476f-af2b-4f323bf67125","block_type":"box","text":"to pay the repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses","page_number":490,"box":{"x":116,"y":583,"width":770,"height":12}},{"id":"d205b23d-c43a-4e9f-98af-ffcd56d9ef42","block_type":"box","text":"in connection with disposition of the collateral. If the seller becomes insolvent and subject to liquidation or","page_number":490,"box":{"x":117,"y":599,"width":759,"height":12}},{"id":"ea877adc-1840-473e-809c-fec35079f677","block_type":"box","text":"reorganization under applicable bankruptcy or other laws, a Fund’s ability to dispose of the underlying","page_number":490,"box":{"x":117,"y":614,"width":733,"height":12}},{"id":"655f7a9a-f67f-4c32-a127-6135b6faae19","block_type":"box","text":"securities may be restricted. Finally, it is possible that a Fund may not be able to substantiate its interest in","page_number":490,"box":{"x":116,"y":630,"width":769,"height":12}},{"id":"0922198c-654c-4988-8291-6ff776ef5521","block_type":"box","text":"the underlying securities. To minimize this risk, the securities underlying the repurchase agreement will be","page_number":490,"box":{"x":116,"y":645,"width":766,"height":12}},{"id":"e716782b-b6e4-4d6a-8354-9da6ea7a68df","block_type":"box","text":"held by the applicable custodian at all times in an amount at least equal to the repurchase price, including","page_number":490,"box":{"x":117,"y":661,"width":756,"height":12}},{"id":"6390049e-5633-4abf-b8c5-cf429020484f","block_type":"box","text":"accrued interest. If the seller fails to repurchase the securities, a Fund may suffer a loss to the extent","page_number":490,"box":{"x":116,"y":676,"width":723,"height":12}},{"id":"20aaaa0a-a99b-4ce3-9f2c-8b1fb23ed232","block_type":"box","text":"proceeds from the sale of the underlying securities are less than the repurchase price.","page_number":490,"box":{"x":117,"y":692,"width":616,"height":12}},{"id":"b81c22e9-36e3-4655-b2b8-86169c426dde","block_type":"box","text":"In any repurchase transaction to which a Fund is a party, collateral for a repurchase agreement may include","page_number":490,"box":{"x":117,"y":723,"width":765,"height":12}},{"id":"33015b01-c1aa-492e-bb4d-f3ddb4efc76d","block_type":"box","text":"cash items and obligations issued by the U.S. Governm","page_number":490,"box":{"x":116,"y":738,"width":395,"height":12}},{"id":"c79dd038-6df0-4921-8c70-a11beda8e763","block_type":"box","text":"ent or its agencies or instrumentalities. For certain","page_number":490,"box":{"x":512,"y":738,"width":353,"height":12}},{"id":"ec3c63d1-cd07-4331-b594-541ac1ad8a3c","block_type":"box","text":"Funds, however, collateral may include instruments other","page_number":490,"box":{"x":117,"y":754,"width":406,"height":12}},{"id":"367a87e2-75a9-4675-bb99-2bad2a2685d9","block_type":"box","text":"than cash items and obligations issued by the","page_number":490,"box":{"x":527,"y":754,"width":324,"height":12}},{"id":"118dcb6e-a90f-4f86-98d3-6089c2c95e62","block_type":"box","text":"U.S. Government or its agencies or instrumentalitie","page_number":490,"box":{"x":117,"y":769,"width":362,"height":12}},{"id":"e5b9e383-d8b0-4edb-9df8-05ea6a90e40c","block_type":"box","text":"s, including securities that the Fund could not hold","page_number":490,"box":{"x":480,"y":769,"width":354,"height":12}},{"id":"4e2b78a6-9b4b-4a52-892c-b91501f65e88","block_type":"box","text":"directly under its investment strategi","page_number":490,"box":{"x":116,"y":785,"width":255,"height":12}},{"id":"8f41f6e9-480e-43e5-8537-06f8be7dfaa6","block_type":"box","text":"es without the repurchase obligation.","page_number":490,"box":{"x":372,"y":785,"width":260,"height":12}},{"id":"06b2a06d-757d-447a-aafe-d57076e7106a","block_type":"box","text":"The type of collateral underlying repurchase agreement","page_number":490,"box":{"x":116,"y":816,"width":394,"height":12}},{"id":"9c73cdd2-d1a0-4332-909e-dff3196ec79b","block_type":"box","text":"s may also pose certain risks for a Fund. Lower","page_number":490,"box":{"x":511,"y":816,"width":337,"height":12}},{"id":"563f9b68-97f6-455c-8217-a2efa191a827","block_type":"box","text":"quality collateral and collateral with longer maturities may","page_number":490,"box":{"x":116,"y":831,"width":410,"height":12}},{"id":"f6a3d1cb-9068-43e9-818f-b76dc9dfc3de","block_type":"box","text":"be subject to greater price fluctuations than higher","page_number":490,"box":{"x":526,"y":831,"width":360,"height":12}},{"id":"37937213-5240-41ed-84ac-5762d32f5858","block_type":"box","text":"quality collateral and collateral with shorter maturities","page_number":490,"box":{"x":116,"y":847,"width":375,"height":12}},{"id":"9a199f6c-0304-46e2-9143-1af7b21464a7","block_type":"box","text":". If the repurchase agreement counterparty were to","page_number":490,"box":{"x":493,"y":847,"width":365,"height":12}},{"id":"8c5f84ae-fe58-4986-825e-40756c7cf455","block_type":"box","text":"default, lower quality collateral may be more difficult t","page_number":490,"box":{"x":116,"y":862,"width":371,"height":12}},{"id":"364299f4-c600-4772-9004-5bc5cb96fe60","block_type":"box","text":"to liquidate than higher quality collateral. Should the","page_number":490,"box":{"x":487,"y":862,"width":371,"height":12}},{"id":"3b0c3a46-8761-4790-a573-3f3ba2936e43","block_type":"box","text":"counterparty default and the amount of collateral not be","page_number":490,"box":{"x":116,"y":878,"width":398,"height":12}},{"id":"69c0c03c-664a-44cb-8f67-9ee76bd088e6","block_type":"box","text":"sufficient to cover the counterparty’s repurchase","page_number":490,"box":{"x":515,"y":878,"width":346,"height":12}},{"id":"bcc06bab-399a-4126-9e58-c9573af53347","block_type":"box","text":"II-92","page_number":490,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"a0e7aec9-e8be-43c6-8c40-8486e537a777","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":490,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"084ffdb7-e714-4534-a054-385fa1027e80","block_type":"box","text":"obligation, a Fund would retain the status of","page_number":491,"box":{"x":116,"y":87,"width":311,"height":12}},{"id":"bd3bc5cf-3983-4549-a7e9-cae31c1f3edf","block_type":"box","text":"f an unsecured creditor of the counterparty (","page_number":491,"box":{"x":426,"y":87,"width":308,"height":12}},{"id":"0e9c8d9c-e332-4bf7-80e0-8f72be47b239","block_type":"box","text":"i.e.","page_number":491,"box":{"x":735,"y":87,"width":19,"height":10}},{"id":"6727cfe6-9911-40fb-bfc1-da98d1ea6969","block_type":"box","text":", the position the","page_number":491,"box":{"x":757,"y":87,"width":121,"height":12}},{"id":"06e7cb55-a383-4036-ade3-d1f1d7657eba","block_type":"box","text":"Fund would normally be in if it were to hold, pursuant","page_number":491,"box":{"x":117,"y":102,"width":375,"height":13}},{"id":"978c7cb5-8735-4a84-a8e6-d6c428612172","block_type":"box","text":"t to its investment policies, other unsecured debt","page_number":491,"box":{"x":491,"y":103,"width":344,"height":11}},{"id":"82f78b29-992e-420d-ab4f-e0331a15b0ad","block_type":"box","text":"securities of the defaulting counterparty) with respect","page_number":491,"box":{"x":116,"y":118,"width":371,"height":12}},{"id":"5dd84f14-182d-4bd9-a3b8-8bd4d5f93c23","block_type":"box","text":"ct to the amount of the shortfall. As an unsecured","page_number":491,"box":{"x":487,"y":118,"width":347,"height":10}},{"id":"dc9eefe7-77f7-4509-8440-597614315e87","block_type":"box","text":"creditor, a Fund would be at risk of losing some or all of","page_number":491,"box":{"x":116,"y":134,"width":394,"height":12}},{"id":"017f3ce0-9463-4e7f-b1e7-05a00e24b187","block_type":"box","text":"f the principal and income involved in the transaction.","page_number":491,"box":{"x":509,"y":134,"width":378,"height":11}},{"id":"f2a2fd87-f00e-419f-96e9-49f017b06dc5","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and","page_number":491,"box":{"x":117,"y":165,"width":761,"height":12}},{"id":"97cef292-718b-442c-9009-b2bd84097256","block_type":"box","text":"certain of their affiliates to include in certain financial contracts, including many repurchase agreements","page_number":491,"box":{"x":116,"y":180,"width":771,"height":12}},{"id":"2d2518e7-c459-4ef6-b720-7c0843f501e6","block_type":"box","text":"and purchase and sale contracts, terms that delay or restrict the rights of counterparties, such as a","page_number":491,"box":{"x":116,"y":196,"width":738,"height":12}},{"id":"e12012d6-2869-4987-9877-82bb9b8af8ea","block_type":"box","text":"Fund, to terminate such agreements, take foreclosure action, exercise other default rights or restrict","page_number":491,"box":{"x":117,"y":211,"width":744,"height":12}},{"id":"eca7dfe0-35a1-4a18-8517-4ad7b54eb781","block_type":"box","text":"transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain","page_number":491,"box":{"x":116,"y":227,"width":748,"height":12}},{"id":"8e24ff63-6368-47f4-9263-8822f4c369a3","block_type":"box","text":"types of resolution or insolvency proceedings. It is possible that these requirements, as well as","page_number":491,"box":{"x":116,"y":242,"width":707,"height":12}},{"id":"548fd1ea-6943-44b0-a675-8202499901f2","block_type":"box","text":"potential additional government regulation and other developments in the market, could adversely","page_number":491,"box":{"x":117,"y":258,"width":729,"height":12}},{"id":"767cef60-706f-4884-ab97-b0a8867c19a3","block_type":"box","text":"affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale contracts or","page_number":491,"box":{"x":116,"y":273,"width":768,"height":12}},{"id":"2c5477c1-f620-4e5c-b3be-0bfb83374178","block_type":"box","text":"to realize amounts to be received under such agreements. The SEC has also finalized rules that will","page_number":491,"box":{"x":116,"y":289,"width":747,"height":12}},{"id":"87dfb8d3-b900-4e6b-97c4-e41b0c5cad06","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally","page_number":491,"box":{"x":117,"y":304,"width":770,"height":12}},{"id":"e91c269e-968f-4048-a01b-dfbb980dc53c","block_type":"box","text":"cleared. Compliance with these rules is expected to be required by the middle of 2027. Although the","page_number":491,"box":{"x":116,"y":320,"width":747,"height":12}},{"id":"e2900c53-dad3-4c4b-b860-1d8630e84341","block_type":"box","text":"impact of these rules on the Funds is difficult to predict, they may reduce the availability or increase the","page_number":491,"box":{"x":117,"y":335,"width":770,"height":12}},{"id":"9d50c685-1162-4901-9733-2d48a189caf2","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":491,"box":{"x":116,"y":351,"width":563,"height":12}},{"id":"c0159fac-9ee3-4f41-9e3b-b5d1b0c3a1a0","block_type":"box","text":"Restricted Securities.","page_number":491,"box":{"x":116,"y":382,"width":177,"height":9}},{"id":"db5ab25f-a559-456b-9e88-fd6e1c8e515b","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the","page_number":491,"box":{"x":293,"y":382,"width":539,"height":12}},{"id":"0b40ee2d-cf48-4698-88c8-a68c3b08ac84","block_type":"box","text":"Securities Act (“restricted securities”), which may include securities in private companies and","page_number":491,"box":{"x":116,"y":397,"width":694,"height":12}},{"id":"af50988b-eadb-4079-bad2-66e593a1c376","block_type":"box","text":"Rule 144A Securities. Restricted securities may be sold in private placement transactions between","page_number":491,"box":{"x":117,"y":413,"width":736,"height":12}},{"id":"157e2094-4ab5-48ea-9ac7-ce73befc6257","block_type":"box","text":"issuers and their purchasers, including through private negotiated transactions between the issuer and","page_number":491,"box":{"x":117,"y":428,"width":765,"height":12}},{"id":"81c421d3-cc5d-41f1-9c49-1bc747c7c7c8","block_type":"box","text":"their purchasers, such as the Funds, and may be neither listed on an exchange nor traded in other","page_number":491,"box":{"x":116,"y":444,"width":736,"height":12}},{"id":"0f9c777e-c220-4058-90d0-1b6fdd0340aa","block_type":"box","text":"established markets. In many cases, privately placed securities may not be freely transferable under","page_number":491,"box":{"x":116,"y":459,"width":749,"height":12}},{"id":"15b375e9-47a1-4abf-892e-9b22dc978eed","block_type":"box","text":"the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of these","page_number":491,"box":{"x":116,"y":475,"width":714,"height":12}},{"id":"9de8a7c5-f618-40e2-8dde-1c093cdf47eb","block_type":"box","text":"securities are new and complex, and trade only among institutions; the markets for these securities are","page_number":491,"box":{"x":116,"y":490,"width":769,"height":12}},{"id":"1ac23e17-b2c1-43d0-80e4-15de897f1d19","block_type":"box","text":"still developing and may not function as efficiently as established markets. Typically, investments in","page_number":491,"box":{"x":116,"y":506,"width":742,"height":12}},{"id":"b2542381-7318-4048-b09c-3f8f4e557a9a","block_type":"box","text":"private companies are in restricted securities that are not traded in public markets and subject to","page_number":491,"box":{"x":117,"y":521,"width":719,"height":12}},{"id":"6486b5fa-4448-4a22-bf7a-3241bca51889","block_type":"box","text":"substantial holding periods, so that a Fund may not be able to resell some of its holdings for extended","page_number":491,"box":{"x":116,"y":537,"width":760,"height":12}},{"id":"64b7e80b-e258-45ba-b14c-0072b2bb4795","block_type":"box","text":"periods, which may be several years. There can be no assurance that a Fund will be able to realize the","page_number":491,"box":{"x":117,"y":552,"width":769,"height":12}},{"id":"82416d84-5111-47a5-aae6-015a3adb179c","block_type":"box","text":"value of such restricted securities in a timely manner or at all. As a result of the absence of a public","page_number":491,"box":{"x":116,"y":568,"width":741,"height":12}},{"id":"12ca6d3c-c09d-470f-8c19-2a7d15507e5c","block_type":"box","text":"trading market and the potential bespoke nature on certain transactions, restricted securities may be","page_number":491,"box":{"x":116,"y":583,"width":750,"height":12}},{"id":"b7566fb3-7d93-45e7-a6df-d9a612eef734","block_type":"box","text":"deemed to be illiquid investments or less liquid investments and may be more difficult to value than","page_number":491,"box":{"x":116,"y":599,"width":740,"height":12}},{"id":"5e6bcfbd-5fad-4104-bbae-52736fcb8013","block_type":"box","text":"publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":491,"box":{"x":117,"y":614,"width":757,"height":12}},{"id":"b035f669-737b-4f0c-819f-81cfd171cebf","block_type":"box","text":"transactions, the prices realized from the sales, due to lack of liquidity, could be less than those","page_number":491,"box":{"x":116,"y":630,"width":713,"height":12}},{"id":"9f0a1c91-4f53-4b2e-910e-1f8f21c67f0b","block_type":"box","text":"originally paid by the Fund or less than their fair market value. The amount of any discount may vary","page_number":491,"box":{"x":116,"y":645,"width":749,"height":12}},{"id":"18b0e3a2-6c0b-41b4-8da7-a2de2b26288a","block_type":"box","text":"depending on the security type, the character of the issuer, which party (if any) will bear the expenses","page_number":491,"box":{"x":116,"y":661,"width":754,"height":12}},{"id":"1f5b6e11-4ad3-4038-af12-31061e82c9e7","block_type":"box","text":"of registering the restricted security, and prevailing market conditions. In addition, issuers whose","page_number":491,"box":{"x":116,"y":676,"width":715,"height":12}},{"id":"3b07c23c-67b9-4d80-8168-362c522b5982","block_type":"box","text":"securities are not publicly traded or who are not otherwise publicly listed may not be subject to the","page_number":491,"box":{"x":116,"y":692,"width":727,"height":12}},{"id":"b0d0d0c0-7421-48de-947a-236171bab108","block_type":"box","text":"disclosure and other investor protection requirements that may be applicable if their securities were","page_number":491,"box":{"x":116,"y":707,"width":736,"height":12}},{"id":"03487428-f80a-4da7-9caf-0916aeabbe39","block_type":"box","text":"publicly traded. If any privately placed securities held by a Fund are required to be registered under the","page_number":491,"box":{"x":117,"y":723,"width":764,"height":12}},{"id":"301d6c6f-c0db-4ed6-acb3-931cfd4dc137","block_type":"box","text":"securities laws of one or more jurisdictions before being resold, the Fund may be required to bear the","page_number":491,"box":{"x":116,"y":738,"width":751,"height":12}},{"id":"22315488-e227-446f-a749-28e8dbd803d9","block_type":"box","text":"expenses of registration. Where registration is required for restricted securities, a considerable time","page_number":491,"box":{"x":116,"y":754,"width":738,"height":12}},{"id":"c7f7df98-99e2-402e-83ff-729e0eeebf0b","block_type":"box","text":"period may elapse between the time the Fund decides to sell the security and the time it is actually","page_number":491,"box":{"x":117,"y":769,"width":731,"height":12}},{"id":"bffae2cb-57b1-4300-9394-259694ef5863","block_type":"box","text":"permitted to sell the security under an effective registration statement. If during such period, adverse","page_number":491,"box":{"x":117,"y":785,"width":744,"height":12}},{"id":"9dba5da7-b996-46e4-b934-0c6c28b1016e","block_type":"box","text":"market conditions were to develop, the Fund might obtain less favorable pricing terms than when it","page_number":491,"box":{"x":117,"y":800,"width":731,"height":12}},{"id":"d792c23d-cff7-47a5-8c22-ed3983828531","block_type":"box","text":"decided to sell the security. In addition, the Fund may be deemed to be an “underwriter” for purposes","page_number":491,"box":{"x":116,"y":816,"width":750,"height":12}},{"id":"7302af69-9aef-4543-a9bf-9924c4e3cc97","block_type":"box","text":"of the Securities Act when selling restricted securities. If so, the Fund may be liable to purchasers of","page_number":491,"box":{"x":116,"y":831,"width":747,"height":12}},{"id":"d38a941d-21dd-4ad7-b2fd-6d27a8363a1d","block_type":"box","text":"the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":491,"box":{"x":116,"y":847,"width":722,"height":12}},{"id":"daca76f8-7f05-4ad8-b88a-727dda3315a2","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other","page_number":491,"box":{"x":117,"y":862,"width":769,"height":12}},{"id":"2480b7d0-fada-4a67-b887-26fabe9a0330","block_type":"box","text":"transaction costs that are higher than those for transactions in unrestricted securities. Certain of the","page_number":491,"box":{"x":116,"y":878,"width":744,"height":12}},{"id":"4055dcd4-6581-4008-97bd-b3618320e412","block_type":"box","text":"II-93","page_number":491,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"e54fa9ed-2f97-4051-b1bd-293271c5207a","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":491,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"faa73bb9-398f-4783-a3c7-7a42c4f58da6","block_type":"box","text":"Fund’s investments in private placements may consist of direct investments and may include","page_number":492,"box":{"x":117,"y":87,"width":692,"height":12}},{"id":"70cd1397-8660-47ec-8dca-86ecd6bac586","block_type":"box","text":"investments in smaller, less seasoned issuers, which may involve greater risks. Issuers of restricted","page_number":492,"box":{"x":117,"y":102,"width":744,"height":13}},{"id":"395fb064-78e3-4325-b29c-43f791de753b","block_type":"box","text":"securities may not be subject to SEC reporting requirements, may not be required to maintain their","page_number":492,"box":{"x":116,"y":118,"width":737,"height":12}},{"id":"34e04a9e-95ad-44ce-bb91-abfade85871f","block_type":"box","text":"accounting records in accordance with generally accepted accounting principles, and may not be","page_number":492,"box":{"x":116,"y":134,"width":724,"height":12}},{"id":"12abee37-2f6b-43d3-99a2-e145b4549100","block_type":"box","text":"required to maintain effective internal controls over financial reporting. As a result, BlackRock may not","page_number":492,"box":{"x":117,"y":149,"width":760,"height":12}},{"id":"71a201f9-a4ec-429c-a6af-a0df37104093","block_type":"box","text":"have timely or accurate information about the business, financial condition and results of operations of","page_number":492,"box":{"x":117,"y":165,"width":762,"height":12}},{"id":"1273896e-6c5d-41e7-9667-11e475eabbf1","block_type":"box","text":"such issuers, and investments in securities of such issuers may involve a high degree of business and","page_number":492,"box":{"x":116,"y":180,"width":764,"height":12}},{"id":"895e6cce-1f05-434b-a859-ce18586c814c","block_type":"box","text":"financial risk and may result in substantial losses to the Fund. Such issuers may also have limited","page_number":492,"box":{"x":116,"y":196,"width":729,"height":12}},{"id":"51d76046-398a-44e0-90b5-f6ab30190217","block_type":"box","text":"product lines, markets or financial resources, or they may be dependent on a limited management","page_number":492,"box":{"x":117,"y":211,"width":731,"height":12}},{"id":"a69e6077-e618-4037-9c0b-c05f339c2cd7","block_type":"box","text":"group.","page_number":492,"box":{"x":116,"y":229,"width":52,"height":10}},{"id":"4b731528-c163-446d-8bae-f70eae7f30c2","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":492,"box":{"x":117,"y":258,"width":740,"height":12}},{"id":"701d235b-8e5a-4c7d-bfeb-7ae4359f50a7","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced","page_number":492,"box":{"x":117,"y":273,"width":687,"height":12}},{"id":"e823b41a-7c1c-43f3-8a12-f78f4a817351","block_type":"box","text":"proportionately as the Fund’s net assets grow from new or additional investments made in the Fund by","page_number":492,"box":{"x":117,"y":289,"width":766,"height":12}},{"id":"97375b54-4750-4d85-861d-61a80cd47884","block_type":"box","text":"other shareholders. The issuer of a private placement may later register those shares for public sale in","page_number":492,"box":{"x":116,"y":304,"width":765,"height":12}},{"id":"6e3f02d4-cb15-4270-98a2-0586aab81b73","block_type":"box","text":"an IPO, but there is no guarantee that an IPO will ever be completed. Even after an IPO, there may be","page_number":492,"box":{"x":116,"y":320,"width":766,"height":12}},{"id":"eb9be4ac-170f-41ae-98a3-e4ac7561dd7d","block_type":"box","text":"a limited trading market for securities of that issuer, including any direct investment by a Fund, or the","page_number":492,"box":{"x":116,"y":335,"width":752,"height":12}},{"id":"639bc0cb-650e-45d1-91d5-d722a5489794","block_type":"box","text":"Fund may be subject to contractual limitations on its ability to resell its existing securities following an","page_number":492,"box":{"x":117,"y":351,"width":754,"height":12}},{"id":"78428f01-bf4d-48c9-816c-3d59c81b3845","block_type":"box","text":"IPO. The inability of an applicable issuer of a restricted security to complete an IPO or offer other","page_number":492,"box":{"x":117,"y":366,"width":723,"height":12}},{"id":"b5e6eaad-c56c-4d33-afc1-33043f42c68c","block_type":"box","text":"liquidity opportunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":492,"box":{"x":117,"y":382,"width":708,"height":12}},{"id":"8c9e56d9-c490-414a-9e6f-967f7d85ad10","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making","page_number":492,"box":{"x":117,"y":397,"width":756,"height":12}},{"id":"1981407b-52e0-49fb-880f-d59f4f2ca637","block_type":"box","text":"investments in such securities, a Fund may obtain access to material nonpublic information, which may","page_number":492,"box":{"x":117,"y":413,"width":770,"height":12}},{"id":"3cfbb04d-a402-4045-a957-7044ebedc145","block_type":"box","text":"restrict the Fund’s ability to conduct portfolio transactions in such securities. The activity of identifying,","page_number":492,"box":{"x":117,"y":428,"width":759,"height":12}},{"id":"d15e4fab-3d46-44a5-83c3-b3a55328016a","block_type":"box","text":"completing, and realizing upon attractive investments in restricted securities is highly competitive and","page_number":492,"box":{"x":116,"y":444,"width":756,"height":12}},{"id":"8d7c4be1-30a3-4c70-827f-0e6497753483","block_type":"box","text":"involves a high degree of uncertainty. A Fund will be competing for investments against other similarly","page_number":492,"box":{"x":117,"y":459,"width":761,"height":12}},{"id":"e90942b3-d383-49a7-a719-f7e7210473fe","block_type":"box","text":"situated investors. It is possible that competition for appropriate investment opportunities may increase,","page_number":492,"box":{"x":116,"y":475,"width":772,"height":12}},{"id":"e8a7536d-acef-4715-b51f-5098877e1f40","block_type":"box","text":"thus potentially reducing the number of investment opportunities available to a Fund and adversely","page_number":492,"box":{"x":116,"y":490,"width":738,"height":12}},{"id":"10ef1948-613c-4044-acdc-c1081787cdd7","block_type":"box","text":"affecting the terms upon which investments can be made. There is no assurance that investment","page_number":492,"box":{"x":116,"y":506,"width":724,"height":12}},{"id":"fdec5e73-bc62-425b-9a36-9dfe7c87d3d6","block_type":"box","text":"opportunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":492,"box":{"x":116,"y":521,"width":765,"height":12}},{"id":"4be1464f-8177-42d4-8541-6361426cdcde","block_type":"box","text":"especially as that Fund grows in size.","page_number":492,"box":{"x":116,"y":537,"width":283,"height":12}},{"id":"909437c5-d7ab-4b96-b817-d48431b97238","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular,","page_number":492,"box":{"x":116,"y":568,"width":722,"height":12}},{"id":"c732b693-a6e3-4474-bcd6-7cfc2f9efea9","block_type":"box","text":"restricted securities issued by private companies), and thus may be considered “illiquid.” Each Fund","page_number":492,"box":{"x":117,"y":583,"width":745,"height":12}},{"id":"9823717e-465b-4a80-94aa-668f8167e18a","block_type":"box","text":"values restricted securities in accordance with BlackRock’s valuation policies and procedures, which","page_number":492,"box":{"x":116,"y":599,"width":750,"height":12}},{"id":"5d2fcc69-683d-4d0b-b3ad-0b6d2966cfcc","block_type":"box","text":"are designed to value investments such that they accurately reflect fair value. Due to the inherent","page_number":492,"box":{"x":116,"y":614,"width":727,"height":12}},{"id":"142676bb-e177-436a-b654-80483c878a1a","block_type":"box","text":"uncertainty and subjectivity of determining the fair value of investments that do not have a readily","page_number":492,"box":{"x":117,"y":630,"width":725,"height":12}},{"id":"415ca7e4-9b16-4952-b697-049b17555a91","block_type":"box","text":"available market value, the fair value of a Fund’s private investments may differ significantly from the","page_number":492,"box":{"x":116,"y":645,"width":752,"height":12}},{"id":"7c4805e4-9093-4233-83ec-1f3d241e099b","block_type":"box","text":"values that would have been used had a readily available market value existed for such investments","page_number":492,"box":{"x":116,"y":661,"width":744,"height":12}},{"id":"9e6baf96-40f8-49b7-b143-e2d5f93a3d4d","block_type":"box","text":"and may differ materially from the amounts the Fund may realize on any dispositions of such","page_number":492,"box":{"x":116,"y":676,"width":686,"height":12}},{"id":"1040910e-d884-45f5-9394-1b99d144f6fa","block_type":"box","text":"investments. Differences in the value of the Fund’s private investments could result in the Fund’s","page_number":492,"box":{"x":117,"y":692,"width":717,"height":12}},{"id":"c8ebc1fb-3c33-4944-a2b8-71912128a695","block_type":"box","text":"shareholder transactions being effected at a NAV that does not accurately reflect the underlying value","page_number":492,"box":{"x":116,"y":707,"width":755,"height":12}},{"id":"edb0bb56-73c4-43ec-bcbd-8e2588bc9996","block_type":"box","text":"of the Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing","page_number":492,"box":{"x":116,"y":723,"width":712,"height":12}},{"id":"738cefcc-d9fb-4539-b3e3-e5d26f2a8e8a","block_type":"box","text":"opportunities for shareholder arbitrage. The values used by the Fund to price its restricted securities","page_number":492,"box":{"x":116,"y":738,"width":742,"height":12}},{"id":"381051e7-4005-4e86-a050-ad38378428b8","block_type":"box","text":"may also differ from those used by other investment companies and investors to price the same","page_number":492,"box":{"x":117,"y":754,"width":710,"height":12}},{"id":"2db42d0f-7e96-4c0e-9417-ac2c0d15e477","block_type":"box","text":"restricted securities. In addition, the impact of changes in the market environment and other events on","page_number":492,"box":{"x":117,"y":769,"width":757,"height":12}},{"id":"ca869ddf-8adc-4ba7-8e23-a8dace69d19b","block_type":"box","text":"the fair values of a Fund’s investments that have no readily available market values may differ from the","page_number":492,"box":{"x":116,"y":785,"width":764,"height":12}},{"id":"b9dbd399-f467-4dcd-8fa5-2029da8f57c6","block_type":"box","text":"impact of such changes on the readily available market values for the Fund’s other investments. A","page_number":492,"box":{"x":117,"y":800,"width":728,"height":12}},{"id":"65391d1d-3e4a-4cab-88d9-18eeb6c22534","block_type":"box","text":"Fund’s NAV could be adversely affected if the Fund’s determinations regarding the fair value of the","page_number":492,"box":{"x":117,"y":816,"width":733,"height":12}},{"id":"05229dd0-e4f7-41d2-861c-fa8b941fef26","block_type":"box","text":"Fund’s investments were materially higher than the investment’s actual market or fair value or the","page_number":492,"box":{"x":117,"y":831,"width":728,"height":12}},{"id":"7b35f08c-29f1-4d64-9aa2-2be3bfdcbfc1","block_type":"box","text":"values that the Fund ultimately realizes upon the disposal of such investments.","page_number":492,"box":{"x":116,"y":847,"width":590,"height":12}},{"id":"50bdbc5e-d4fd-4976-b85c-c1b91f7a5d14","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":492,"box":{"x":116,"y":878,"width":400,"height":12}},{"id":"fee245b2-a8fc-4e01-8037-431a5d4f9899","block_type":"box","text":"II-94","page_number":492,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"cfe3b175-7f37-411b-80fb-6852b563a2e2","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":492,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c15a57ca-2468-418c-927a-f4cdd3456592","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":493,"box":{"x":116,"y":87,"width":257,"height":12}},{"id":"5ed7eab0-79f3-4dd5-9abb-959e851f2318","block_type":"box","text":"A Fund may enter into reverse re","page_number":493,"box":{"x":373,"y":87,"width":227,"height":12}},{"id":"c1b91890-e326-45eb-8327-3b8a069f446e","block_type":"box","text":"repurchase agreements with the same","page_number":493,"box":{"x":600,"y":87,"width":267,"height":12}},{"id":"063ccf3b-5505-4f6c-b0ef-ada90bcdbb8c","block_type":"box","text":"parties with whom it may enter into repurchase","page_number":493,"box":{"x":117,"y":103,"width":328,"height":12}},{"id":"21399a37-c73a-4aaf-873b-375209a86329","block_type":"box","text":"agreements. Under a reverse repurchase agreement, a Fund","page_number":493,"box":{"x":445,"y":103,"width":431,"height":12}},{"id":"5dbf85dc-2412-4d4c-9796-e861d056f544","block_type":"box","text":"sells securities to another party and agrees to repurc","page_number":493,"box":{"x":116,"y":118,"width":358,"height":12}},{"id":"b92952f9-1dc7-4d1c-8062-9a229ae29118","block_type":"box","text":"rchase them at a particular date and price. A Fund may","page_number":493,"box":{"x":473,"y":118,"width":383,"height":12}},{"id":"d74d0c1f-1597-4eb1-aa84-3ea60991928a","block_type":"box","text":"enter into a reverse repurchase agreement when it is","page_number":493,"box":{"x":116,"y":134,"width":372,"height":12}},{"id":"5be5d043-7efc-46eb-8203-6aabbac2b701","block_type":"box","text":"anticipated that the interest income to be earned from","page_number":493,"box":{"x":488,"y":134,"width":376,"height":11}},{"id":"1e15fc6a-688f-4692-a51b-491ad96b5c3d","block_type":"box","text":"the investment of the proceeds of the transaction is","page_number":493,"box":{"x":116,"y":149,"width":359,"height":12}},{"id":"c035b456-1de0-42da-a91e-60fd75acd98b","block_type":"box","text":"greater than the interest expense of the transaction.","page_number":493,"box":{"x":475,"y":149,"width":363,"height":12}},{"id":"d3baf340-3009-4c0a-866d-c6474b4b736e","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":493,"box":{"x":116,"y":180,"width":772,"height":12}},{"id":"dd2acddd-fe0a-49c0-acbd-80aec2cd9cd4","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the","page_number":493,"box":{"x":117,"y":196,"width":771,"height":12}},{"id":"10547405-9bb4-419d-b5f9-001c06fb5f08","block_type":"box","text":"investment of the proceeds will be less than the interest expense, (ii) the market value of the securities","page_number":493,"box":{"x":117,"y":211,"width":765,"height":12}},{"id":"94d258b0-9f7c-40ec-825b-1c42f0313da6","block_type":"box","text":"retained in lieu of sale by a Fund may decline below","page_number":493,"box":{"x":117,"y":227,"width":390,"height":12}},{"id":"3c19ca6c-2a52-4672-be01-d7af705e7306","block_type":"box","text":"the price of the securities the Fund has sold but is","page_number":493,"box":{"x":507,"y":227,"width":375,"height":11}},{"id":"02d7a044-827e-4dfd-8958-fa8793a673ce","block_type":"box","text":"obligated to repurchase, (iii) the market value of the securities sold will decline below the price at which","page_number":493,"box":{"x":116,"y":242,"width":770,"height":12}},{"id":"ccf3fc9b-875d-4c29-bffa-e9b762738239","block_type":"box","text":"the Fund is required to repurchase them and (iv) the securities will not be returned to the Fund.","page_number":493,"box":{"x":116,"y":258,"width":710,"height":12}},{"id":"14fb8ccc-80a8-4a38-a603-0aa33de03a2d","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":493,"box":{"x":117,"y":289,"width":759,"height":12}},{"id":"5ac91d5a-b558-4c2d-beed-b54ab9f57b9b","block_type":"box","text":"insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to","page_number":493,"box":{"x":117,"y":304,"width":732,"height":12}},{"id":"33002e4f-5b8c-444d-b610-c08a6e05cdda","block_type":"box","text":"enforce a Fund’s obligations to repurchase the securities and the Fund’s use of the proceeds of the reverse","page_number":493,"box":{"x":116,"y":320,"width":758,"height":12}},{"id":"8ac851fb-1748-41e7-a3f6-3f34f22fd409","block_type":"box","text":"repurchase agreement may effectively be restricted pending such decision.","page_number":493,"box":{"x":117,"y":335,"width":531,"height":12}},{"id":"7cf8c294-cb76-4558-b26f-8ef95d0aba61","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase","page_number":493,"box":{"x":117,"y":366,"width":710,"height":12}},{"id":"6c65d83e-385f-42f1-9ba8-5b88d8058fd8","block_type":"box","text":"agreements and similar financing transactions (e.g., recourse and non-recourse tender option bonds,","page_number":493,"box":{"x":116,"y":382,"width":755,"height":12}},{"id":"4b0b26db-9080-4562-9256-5fc80f74fccb","block_type":"box","text":"borrowed bonds) notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":493,"box":{"x":117,"y":397,"width":767,"height":12}},{"id":"81f0b568-0b12-4c7f-9595-23ddfc269e17","block_type":"box","text":"Investment Company Act, provided that the Fund either (i) complies with the 300% asset coverage","page_number":493,"box":{"x":117,"y":413,"width":736,"height":12}},{"id":"d26c563b-3ab6-4bb9-9caf-61a04dfe1827","block_type":"box","text":"ratio with respect to all such transactions and any other borrowings in the aggregate, or (ii) treats all","page_number":493,"box":{"x":117,"y":428,"width":744,"height":12}},{"id":"9bf9c036-4c1d-4af7-a38e-e5d2802337b6","block_type":"box","text":"such transactions as Derivatives Transactions under Rule 18f-4. See “— Derivatives — Regulation of","page_number":493,"box":{"x":116,"y":444,"width":756,"height":12}},{"id":"4d9e3bc7-8c1d-4eeb-82dd-6c001f9df15e","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also finalized rules","page_number":493,"box":{"x":117,"y":459,"width":768,"height":12}},{"id":"b50b646f-cd93-4719-9cb4-5bfa0e7faca5","block_type":"box","text":"that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":493,"box":{"x":116,"y":475,"width":685,"height":12}},{"id":"971d221c-edd5-4435-bc47-0ad28b29eaca","block_type":"box","text":"agreements, to be centrally cleared. Compliance with these rules is expected to be required by the","page_number":493,"box":{"x":116,"y":490,"width":736,"height":12}},{"id":"2b52c06d-29a6-4cf3-9a2b-7f36cb6ee1d5","block_type":"box","text":"middle of 2027. Although the impact of these rules on the Funds is difficult to predict, they may reduce","page_number":493,"box":{"x":117,"y":506,"width":762,"height":12}},{"id":"f5e1245e-ac85-43b9-af61-8095455b6cce","block_type":"box","text":"the availability or increase the costs of such transactions and may adversely affect a Fund’s","page_number":493,"box":{"x":116,"y":521,"width":686,"height":12}},{"id":"62d2e65b-9693-4cb1-8d43-b181b20c880e","block_type":"box","text":"performance.","page_number":493,"box":{"x":117,"y":537,"width":103,"height":12}},{"id":"e9d94063-ac1c-4f30-b25e-0dc332fd574f","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated","page_number":493,"box":{"x":116,"y":568,"width":707,"height":12}},{"id":"8901dca8-f1a3-4ee5-94ee-5887dc85387f","block_type":"box","text":"counterparties and certain of their affiliates to include in certain financial contracts, including many","page_number":493,"box":{"x":116,"y":583,"width":732,"height":12}},{"id":"6ca92c05-b0b4-4f8c-90df-b37f06d1ebfd","block_type":"box","text":"reverse repurchase agreements, terms that delay or restrict the rights of counterparties, such as a","page_number":493,"box":{"x":117,"y":599,"width":732,"height":12}},{"id":"19274934-4e50-42a7-8e62-e98e8bcd9b6a","block_type":"box","text":"Fund, to terminate such agreements, take foreclosure action, exercise other default rights or restrict","page_number":493,"box":{"x":117,"y":614,"width":744,"height":12}},{"id":"b8c2b379-8280-4471-adc1-1db6f11e2a59","block_type":"box","text":"transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain","page_number":493,"box":{"x":116,"y":630,"width":748,"height":12}},{"id":"05c50a26-c982-44a4-b93e-af8c1b196c3b","block_type":"box","text":"types of resolution or insolvency proceedings. It is possible that these requirements, as well as","page_number":493,"box":{"x":116,"y":645,"width":707,"height":12}},{"id":"b71bed8c-4a16-478e-a8b3-35b792b486d4","block_type":"box","text":"potential additional government regulation and other developments in the market, could adversely","page_number":493,"box":{"x":117,"y":661,"width":725,"height":12}},{"id":"34294242-a3d5-4c2d-b6a5-93a81c59b0db","block_type":"box","text":"affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize amounts to be","page_number":493,"box":{"x":116,"y":676,"width":760,"height":12}},{"id":"c9815e71-ec2d-4efa-8d16-c6f617eb76e8","block_type":"box","text":"received under such agreements.","page_number":493,"box":{"x":117,"y":692,"width":247,"height":12}},{"id":"408491c0-8a8c-4bd0-930f-d00e7b8c3223","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":493,"box":{"x":116,"y":723,"width":349,"height":12}},{"id":"6db3c702-073c-418c-83e0-b12f0a7dbc92","block_type":"box","text":"Certain Funds may participate in rights offerings and","page_number":493,"box":{"x":471,"y":723,"width":388,"height":12}},{"id":"c8bb37d0-f257-4c43-b429-e8b643132a1f","block_type":"box","text":"may purchase warrants, which are privileges issued by corporations enabling the owners to subscribe","page_number":493,"box":{"x":117,"y":738,"width":754,"height":12}},{"id":"3e03b8d4-4b6b-4819-97c0-f63cf0e3039e","block_type":"box","text":"to and purchase a specified number of shares of the corporation at a specified price during a specified","page_number":493,"box":{"x":116,"y":754,"width":758,"height":12}},{"id":"73d6634a-5665-459b-8468-a64baa56213e","block_type":"box","text":"period of time. Subscription rights normally have a short life span to expiration. The purchase of rights","page_number":493,"box":{"x":117,"y":769,"width":754,"height":12}},{"id":"222c8e25-d242-4016-a3b7-81c53da370af","block_type":"box","text":"or warrants involves the risk that a Fund could lose the purchase value of a right or warrant if the right","page_number":493,"box":{"x":116,"y":785,"width":755,"height":12}},{"id":"19da25fb-7394-4f3d-ac57-d28069426a10","block_type":"box","text":"to subscribe to additional shares is not exercised prior to the rights’ and warrants’ expiration. Also, the","page_number":493,"box":{"x":116,"y":800,"width":755,"height":12}},{"id":"a9b7ac08-5372-41d2-a448-08ca184b93d6","block_type":"box","text":"purchase of rights and/or warrants involves the risk that the effective price paid for the right and/or","page_number":493,"box":{"x":117,"y":816,"width":727,"height":12}},{"id":"0191fde0-e0f2-48d7-b7da-7477cc5040ce","block_type":"box","text":"warrant added to the subscription price of the related security may exceed the value of the subscribed","page_number":493,"box":{"x":116,"y":831,"width":762,"height":12}},{"id":"35638b16-7328-42b6-b186-1fee7fd94002","block_type":"box","text":"security’s market price such as when there is no movement in the level of the underlying security.","page_number":493,"box":{"x":116,"y":847,"width":728,"height":12}},{"id":"0da6e1bc-ca30-434c-9cc2-921b63228c78","block_type":"box","text":"Buying a warrant does not make the Fund a shareholder of the underlying stock. The warrant holder","page_number":493,"box":{"x":117,"y":862,"width":747,"height":12}},{"id":"89680f3e-36bb-4620-97ab-2c4e4e3f954b","block_type":"box","text":"has no voting or dividend rights with respect to the underlying stock. A warrant does not carry any right","page_number":493,"box":{"x":117,"y":878,"width":766,"height":12}},{"id":"1c2ec733-b248-4406-bd45-792d428762b0","block_type":"box","text":"II-95","page_number":493,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"b0950e5a-1d71-4d45-9cf1-6b8026d1c0ec","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":493,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"744fc182-f0a4-4fd6-8bee-c7aafdadc864","block_type":"box","text":"to assets of the issuer, and for this reason investments in warrants may be more speculative than other","page_number":494,"box":{"x":116,"y":87,"width":771,"height":12}},{"id":"f271fb16-49c9-470a-955c-b6add1b55c8c","block_type":"box","text":"equity-based investments.","page_number":494,"box":{"x":116,"y":103,"width":200,"height":12}},{"id":"be2c67c4-c3eb-4cc7-8f90-a409bd805ff7","block_type":"box","text":"Rule 144A Securities.","page_number":494,"box":{"x":116,"y":134,"width":170,"height":9}},{"id":"96cccca6-312f-4d26-a712-57a470cad28b","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":494,"box":{"x":287,"y":134,"width":590,"height":12}},{"id":"d930872d-a40e-4126-8a86-2079108a8df7","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":494,"box":{"x":117,"y":149,"width":769,"height":12}},{"id":"34cebe69-bcd1-452d-a7a2-81edf76cce1b","block_type":"box","text":"Securities Lending.","page_number":494,"box":{"x":117,"y":180,"width":153,"height":12}},{"id":"7ccc8714-71f1-4575-a0aa-5b797917d8fa","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock","page_number":494,"box":{"x":271,"y":180,"width":575,"height":12}},{"id":"c5f5f06d-4d14-4ba0-86ba-2f62565862cb","block_type":"box","text":"determines to be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide","page_number":494,"box":{"x":116,"y":196,"width":744,"height":12}},{"id":"19cfc73f-4617-433b-b8aa-c88d2feb1aab","block_type":"box","text":"collateral that is maintained in an amount at least","page_number":494,"box":{"x":116,"y":211,"width":369,"height":10}},{"id":"a78dad58-b635-4ebf-9a8e-4ad206b1e4e4","block_type":"box","text":"equal to the current market value of the securities","page_number":494,"box":{"x":486,"y":211,"width":373,"height":12}},{"id":"108ff0b6-d539-4a0a-85c6-9f4a4224671d","block_type":"box","text":"loaned. No securities loan shall be made on behalf of a Fund if, as a result, the aggregate value of all","page_number":494,"box":{"x":117,"y":227,"width":755,"height":12}},{"id":"973459a6-8f0f-465b-b700-c9dd2aa778b2","block_type":"box","text":"securities loans of the particular Fund exceeds one-third of the value of such Fund’s total assets","page_number":494,"box":{"x":116,"y":242,"width":718,"height":12}},{"id":"b726dd09-f91b-4676-8540-187bad666ebf","block_type":"box","text":"(including the value of the collateral received). A Fund may terminate a loan at any time and obtain the","page_number":494,"box":{"x":117,"y":258,"width":765,"height":12}},{"id":"7b4eb9bc-3a39-45d5-a456-f989591f746f","block_type":"box","text":"return of the securities loaned. Each Fund receives, by way of substitute payment, the value of any","page_number":494,"box":{"x":117,"y":273,"width":738,"height":12}},{"id":"e33be41f-9292-4b9f-982e-e3d3cd11e0ac","block_type":"box","text":"interest or cash or non-cash distributions paid on the loaned securities that it would have otherwise","page_number":494,"box":{"x":117,"y":289,"width":738,"height":12}},{"id":"e6bd7dad-c999-44d0-aeee-038e95c793f4","block_type":"box","text":"received if the securities were not on loan.","page_number":494,"box":{"x":117,"y":304,"width":318,"height":10}},{"id":"51cab9b6-2391-4a02-932b-86b6f248cb59","block_type":"box","text":"With respect to loans that are collateralized by cash, the borrower may be entitled to receive a fee","page_number":494,"box":{"x":116,"y":335,"width":732,"height":12}},{"id":"8e0c50d4-2ea8-4803-b3eb-a19a95fdd225","block_type":"box","text":"based on the amount of cash collateral. The Funds are compensated by any positive difference","page_number":494,"box":{"x":117,"y":351,"width":712,"height":12}},{"id":"b2ddc8d7-ff38-4ac1-af59-99ca650eb47d","block_type":"box","text":"between the amount earned on the reinvestment of cash collateral and the fee paid to the borrower. In","page_number":494,"box":{"x":117,"y":366,"width":763,"height":12}},{"id":"c944b5a6-87e5-4200-b770-09fd10946ef9","block_type":"box","text":"the case of collateral other than cash, a Fund is compensated by a fee paid by the borrower equal to a","page_number":494,"box":{"x":116,"y":382,"width":765,"height":12}},{"id":"44259986-121d-4a05-85e0-dd7dc91a022d","block_type":"box","text":"percentage of the market value of the loaned securities. Any cash collateral received by the Fund for","page_number":494,"box":{"x":117,"y":397,"width":750,"height":12}},{"id":"98b70009-2949-441d-a4dc-049c9b8504aa","block_type":"box","text":"such loans, and uninvested cash, may be reinvested in certain short-term instruments either directly on","page_number":494,"box":{"x":116,"y":413,"width":770,"height":12}},{"id":"a6a664ab-9e67-4df5-aefc-7a5d7737b64a","block_type":"box","text":"behalf of the Fund or through one or more joint accounts or money market funds, including those","page_number":494,"box":{"x":117,"y":428,"width":722,"height":12}},{"id":"b7d5add7-b6dc-4bd8-9e4d-42b96dc926c0","block_type":"box","text":"affiliated with BlackRock; such investments are subject to investment risk.","page_number":494,"box":{"x":116,"y":444,"width":553,"height":12}},{"id":"5c6219f0-419d-4a72-9ea0-55ef672eca43","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (","page_number":494,"box":{"x":116,"y":475,"width":589,"height":12}},{"id":"ae7d7bc2-7227-4869-b1cf-89a8bb57bb8b","block_type":"box","text":"i.e.","page_number":494,"box":{"x":706,"y":475,"width":21,"height":9}},{"id":"0ff25d1c-05f3-4678-8232-9f504b0828af","block_type":"box","text":", the risk of losses","page_number":494,"box":{"x":730,"y":475,"width":138,"height":11}},{"id":"740f0aeb-9a21-430f-808a-ebe8211dd4c7","block_type":"box","text":"resulting from problems in the settlement and accounting process), “gap” risk (","page_number":494,"box":{"x":117,"y":490,"width":580,"height":12}},{"id":"1f8a3225-c104-4e7c-9411-98e65c7fd273","block_type":"box","text":"i.e.","page_number":494,"box":{"x":698,"y":490,"width":21,"height":10}},{"id":"a4c60cc0-5ec7-4f66-a496-3d48dec0f94b","block_type":"box","text":", the risk of a","page_number":494,"box":{"x":722,"y":490,"width":100,"height":11}},{"id":"f9c4ab52-555c-43f0-b97d-f6d08b358ed0","block_type":"box","text":"mismatch between the return on cash collateral reinvestments and the fees each Fund has agreed to","page_number":494,"box":{"x":117,"y":506,"width":755,"height":12}},{"id":"a6eb0d56-5086-4262-af7c-1a8e4cbc2550","block_type":"box","text":"pay a borrower), foreign exchange risk (","page_number":494,"box":{"x":117,"y":521,"width":296,"height":12}},{"id":"58cc1302-08cb-4b0d-8c53-ed55c83cc3e0","block_type":"box","text":"i.e.","page_number":494,"box":{"x":414,"y":521,"width":20,"height":10}},{"id":"74a04da9-ddea-4488-a350-e8baf779b7a8","block_type":"box","text":", the risk of a shortfall at default when a cash collateral","page_number":494,"box":{"x":437,"y":521,"width":409,"height":11}},{"id":"02675f79-07ba-45a3-9db4-fdc68783574f","block_type":"box","text":"investment is denominated in a currency other than the currency of the assets being loaned due to","page_number":494,"box":{"x":117,"y":537,"width":735,"height":12}},{"id":"79133491-3e74-4e09-b23d-ec98db39aba0","block_type":"box","text":"movements in foreign exchange rates), and credit, legal, counterparty and market risks (including the","page_number":494,"box":{"x":117,"y":552,"width":754,"height":12}},{"id":"658bbb87-d6ee-45b9-a209-34e1d8339626","block_type":"box","text":"risk that market events, including but not limited to corporate actions, could lead a Fund to lend","page_number":494,"box":{"x":117,"y":568,"width":709,"height":12}},{"id":"c6222fa7-a56f-469d-a1f7-636216e9702c","block_type":"box","text":"securities that are trading at a premium due to increased demand, or to recall loaned securities or to","page_number":494,"box":{"x":116,"y":583,"width":748,"height":12}},{"id":"d8592e00-4267-4d8e-9b7c-0beeeb94a523","block_type":"box","text":"lend less or not at all, which could lead to reduced securities lending revenue). If a Fund were to lend","page_number":494,"box":{"x":117,"y":599,"width":754,"height":12}},{"id":"ad08d0ac-0f07-462a-a24b-398677fb5e7d","block_type":"box","text":"out securities that are subject to a corporate action and commit to the borrower a particular election as","page_number":494,"box":{"x":116,"y":614,"width":764,"height":12}},{"id":"aad6ecd3-e036-40e6-9bee-128b9b2fbeb0","block_type":"box","text":"determined by the Fund’s investment adviser, the benefit the Fund would receive in respect of","page_number":494,"box":{"x":116,"y":630,"width":702,"height":12}},{"id":"7f8e3468-7d2f-48e3-99f4-bd623c47bad3","block_type":"box","text":"committing to such election may or may not be less than the benefit the Fund would have received","page_number":494,"box":{"x":116,"y":645,"width":736,"height":12}},{"id":"b44b4491-8b85-4d35-9b01-80dfb70090bd","block_type":"box","text":"from making a different election in such corporate action. If a securities lending counterparty were to","page_number":494,"box":{"x":116,"y":661,"width":743,"height":12}},{"id":"69e47a1d-e287-44fe-8312-824601c80db9","block_type":"box","text":"default, a Fund would be subject to the risk of a possible delay in receiving collateral or in recovering","page_number":494,"box":{"x":116,"y":676,"width":745,"height":12}},{"id":"35c9a311-53f6-4eef-9067-12ecfcfc1590","block_type":"box","text":"the loaned securities, or to a possible loss of rights in the collateral. In the event a borrower does not","page_number":494,"box":{"x":116,"y":692,"width":746,"height":12}},{"id":"308b0d9c-c82b-498e-8907-5e776006a413","block_type":"box","text":"return a Fund’s securities as agreed, the Fund’s ability to participate in a corporate action event may","page_number":494,"box":{"x":117,"y":707,"width":743,"height":12}},{"id":"d288ff94-7a45-4a4b-bd6c-65e444a577e7","block_type":"box","text":"be impacted, or the Fund may experience losses if the proceeds received from liquidating the collateral","page_number":494,"box":{"x":117,"y":723,"width":763,"height":12}},{"id":"dba32952-0ff7-49d8-a876-b9549c2595ea","block_type":"box","text":"do not at least equal the value of the loaned security at the time the collateral is liquidated, plus the","page_number":494,"box":{"x":116,"y":738,"width":734,"height":12}},{"id":"1c9f5af1-8922-4e7f-b13f-0eae99d7c108","block_type":"box","text":"transaction costs incurred in purchasing replacement securities. This latter event could trigger adverse","page_number":494,"box":{"x":116,"y":754,"width":760,"height":12}},{"id":"5a896ffd-8dfb-4e12-bb71-fa32a06f2637","block_type":"box","text":"tax consequences for a Fund. A Fund could lose money if its short-term investment of the collateral","page_number":494,"box":{"x":116,"y":769,"width":736,"height":12}},{"id":"5c5e42c5-c93f-4460-9d87-0187cd9e0c05","block_type":"box","text":"declines in value over the period of the loan. Substitute payments received by a Fund representing","page_number":494,"box":{"x":116,"y":785,"width":731,"height":12}},{"id":"42b58958-dabb-4309-8176-5d5a0563b666","block_type":"box","text":"dividends paid on securities loaned out by the Fund will not be considered qualified dividend income,","page_number":494,"box":{"x":116,"y":800,"width":746,"height":12}},{"id":"8695790e-789c-46b8-aa4a-9e15178a7f44","block_type":"box","text":"and distributions by the Fund of such substitute payments will not constitute qualified dividend income.","page_number":494,"box":{"x":116,"y":816,"width":759,"height":12}},{"id":"c91dbfed-2362-4b6d-995f-f4d908131ef5","block_type":"box","text":"Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":494,"box":{"x":116,"y":831,"width":741,"height":12}},{"id":"4354b8c0-0a01-4efd-918a-2965a139acb8","block_type":"box","text":"REIT securities loaned out by the Fund will not be considered qualified REIT dividends, and","page_number":494,"box":{"x":117,"y":847,"width":684,"height":12}},{"id":"5dc8f9e3-43c2-4e51-89f2-549eae0f1974","block_type":"box","text":"distributions by the Fund of such substitute payments will not be eligible for a 20% deduction currently","page_number":494,"box":{"x":116,"y":862,"width":761,"height":12}},{"id":"328fa635-2efe-4fb5-92c5-36a90b78d2c2","block_type":"box","text":"available for ordinary REIT dividends paid to non-corporate shareholders provided certain other","page_number":494,"box":{"x":116,"y":878,"width":713,"height":12}},{"id":"08cfc936-0826-4d8b-a2eb-046c1175e52f","block_type":"box","text":"II-96","page_number":494,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"a7dd1405-a772-4188-bea1-89315f05217e","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":494,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ec41c030-3e8f-4c6b-9aba-e7890751d1a3","block_type":"box","text":"requirements are satisfied. The securities lending agent will take into account the tax effects on","page_number":495,"box":{"x":117,"y":87,"width":710,"height":12}},{"id":"0a34593f-cb6f-4be1-b1ff-f53bb4b15662","block_type":"box","text":"shareholders caused by these differences in connection with a Fund’s securities lending program.","page_number":495,"box":{"x":116,"y":102,"width":730,"height":13}},{"id":"54455ed1-9fcc-48c5-8175-1f1202e63159","block_type":"box","text":"Substitute payments received on tax-exempt securities loaned out will not be tax-exempt income.","page_number":495,"box":{"x":116,"y":118,"width":727,"height":12}},{"id":"46ca135a-7f90-40e2-b43a-de3a44e86f03","block_type":"box","text":"There could also be changes in the status of issuers under applicable laws and regulations, including","page_number":495,"box":{"x":116,"y":134,"width":755,"height":12}},{"id":"7d286f28-36f6-4fad-83d9-38dc3d5648cd","block_type":"box","text":"tax regulations, that may impact the regulatory or tax treatment of loaned securities and could, for","page_number":495,"box":{"x":116,"y":149,"width":729,"height":12}},{"id":"0900477c-941b-4260-bd74-be4fdeb7987a","block_type":"box","text":"example, result in a delay in the payment of dividend equivalent payments owed to a Fund (as","page_number":495,"box":{"x":116,"y":165,"width":704,"height":12}},{"id":"f31a329b-5f30-432f-9e6f-5e1a5544f735","block_type":"box","text":"permitted by applicable law).","page_number":495,"box":{"x":117,"y":180,"width":217,"height":12}},{"id":"591e529f-cf15-4679-ab12-817b6e59619c","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and","page_number":495,"box":{"x":117,"y":211,"width":761,"height":12}},{"id":"34d8545d-779e-41e5-a6a1-1c54a5bdd724","block_type":"box","text":"certain of their affiliates to include in certain financial contracts, including many securities lending","page_number":495,"box":{"x":116,"y":227,"width":723,"height":12}},{"id":"9aba26b3-f0c5-4b34-bba0-4748a7a866d8","block_type":"box","text":"agreements, terms that delay or restrict the rights of counterparties, such as the Fund, to terminate","page_number":495,"box":{"x":116,"y":242,"width":739,"height":12}},{"id":"cda4fac3-88e8-4b51-89ae-3874b34f42e0","block_type":"box","text":"such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":495,"box":{"x":116,"y":258,"width":751,"height":12}},{"id":"0e4c2f92-8db4-4b15-ad4f-bc0daa2b7e67","block_type":"box","text":"support in the event that the counterparty and/or its affiliates are subject to certain types of resolution","page_number":495,"box":{"x":116,"y":273,"width":754,"height":12}},{"id":"0a0f771d-fdaf-4787-a1b4-e30a8427adab","block_type":"box","text":"or insolvency proceedings. It is possible that these requirements, as well as potential additional","page_number":495,"box":{"x":116,"y":289,"width":711,"height":12}},{"id":"5e051e3c-b115-44ff-9283-1833fa87b808","block_type":"box","text":"government regulation and other developments in the market, could adversely affect the Fund’s ability","page_number":495,"box":{"x":116,"y":304,"width":762,"height":12}},{"id":"0d98c9b0-bc23-4603-97d5-c9ba39526d28","block_type":"box","text":"to terminate existing securities lending agreements or to realize amounts to be received under such","page_number":495,"box":{"x":116,"y":320,"width":744,"height":12}},{"id":"a35e92ca-75de-45e9-a693-5bd573e43dc6","block_type":"box","text":"agreements. Prudential regulation may also favor lenders that can provide additional protections, such","page_number":495,"box":{"x":116,"y":335,"width":764,"height":12}},{"id":"f9c459d0-422e-4e6b-b6c3-c81d70a3fd4e","block_type":"box","text":"as liens that are exercisable upon lender default, to bank borrowers. Certain Funds expect to provide","page_number":495,"box":{"x":116,"y":351,"width":754,"height":12}},{"id":"f3204cf4-2f94-4c7f-bf0f-1f98d370c378","block_type":"box","text":"additional protections to bank borrowers, where permitted pursuant to a Fund’s investment policies and","page_number":495,"box":{"x":116,"y":366,"width":771,"height":12}},{"id":"82c27c07-3cdf-4e3c-9532-f6f1cd49a27e","block_type":"box","text":"if BlackRock believes doing so is in the best interest of the Fund.","page_number":495,"box":{"x":117,"y":382,"width":484,"height":12}},{"id":"22a676be-a12f-4101-bf58-8628bb0b3761","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan","page_number":495,"box":{"x":116,"y":413,"width":698,"height":12}},{"id":"5863a0ef-1c3e-4656-aaea-96c82f0d2671","block_type":"box","text":"transaction","page_number":495,"box":{"x":116,"y":428,"width":81,"height":10}},{"id":"cf1eb815-1fc2-4123-9d2b-65a5165bcac1","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information","page_number":495,"box":{"x":204,"y":428,"width":667,"height":12}},{"id":"73cfafe2-8c73-48d6-af7c-3ef4e73041cc","block_type":"box","text":"about securities","page_number":495,"box":{"x":116,"y":444,"width":117,"height":9}},{"id":"bbb23b16-0aee-46a9-8a48-9790f31a440c","block_type":"box","text":"loans entered into in connection with short sales. Compliance with this rule is expected","page_number":495,"box":{"x":239,"y":444,"width":648,"height":12}},{"id":"7a032c63-40cb-4d3e-a645-b7d607fd19c4","block_type":"box","text":"to be required late 2028, although in response to the outcome of a legal challenge against the rule, the","page_number":495,"box":{"x":116,"y":459,"width":766,"height":12}},{"id":"4d1f98dc-2f72-4689-a3cc-4576cbf1d707","block_type":"box","text":"SEC may amend the rule and/or delay the current expected compliance date.","page_number":495,"box":{"x":116,"y":475,"width":580,"height":12}},{"id":"94dc2d86-244d-4ccc-b993-73bebd7ea330","block_type":"box","text":"Short Sales.","page_number":495,"box":{"x":117,"y":506,"width":95,"height":9}},{"id":"d62263ad-48a8-42c6-b867-8c07cf93c0b7","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential","page_number":495,"box":{"x":213,"y":506,"width":645,"height":12}},{"id":"daa71ddc-d38e-42e9-a126-7a86e60dbf5d","block_type":"box","text":"declines in value of a portfolio security or to realize appreciation when a security that the Fund does","page_number":495,"box":{"x":116,"y":521,"width":744,"height":12}},{"id":"84a0a358-be29-4f03-ae84-355c14c516ae","block_type":"box","text":"not own declines in value. Certain Funds have a fundamental investment restriction prohibiting short","page_number":495,"box":{"x":117,"y":537,"width":747,"height":12}},{"id":"01b3ac0c-2b73-4980-b451-97bed3545542","block_type":"box","text":"sales of securities unless they are “against-the-box.” In a short sale “against-the-box,” at the time of the","page_number":495,"box":{"x":116,"y":552,"width":771,"height":12}},{"id":"7ed40cc1-ebef-403f-bb86-544de32fd009","block_type":"box","text":"sale, the Fund owns or has the immediate and unconditional right to acquire the identical security at no","page_number":495,"box":{"x":116,"y":568,"width":769,"height":12}},{"id":"ba183bab-cf02-4e23-84b0-05d2a6876b06","block_type":"box","text":"additional cost. When a Fund makes a short sale, it borrows the security sold short and delivers it to","page_number":495,"box":{"x":116,"y":583,"width":746,"height":12}},{"id":"d02abef5-558f-404a-bf36-741c331b0567","block_type":"box","text":"the broker-dealer through which it made the short sale. A Fund may have to pay a fee to borrow","page_number":495,"box":{"x":116,"y":599,"width":717,"height":12}},{"id":"07ca0c36-9827-44e0-a65a-77eba2be799e","block_type":"box","text":"particular securities and is often obligated to turn over any payments received on such borrowed","page_number":495,"box":{"x":117,"y":614,"width":719,"height":12}},{"id":"01e5a755-6d6a-47ef-8ef9-3eb10538f652","block_type":"box","text":"securities to the lender of the securities.","page_number":495,"box":{"x":116,"y":630,"width":301,"height":9}},{"id":"3d18a81b-b306-4fef-b91b-e2c06cd78448","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker","page_number":495,"box":{"x":116,"y":661,"width":756,"height":12}},{"id":"e6baef26-55bf-4e2a-8366-b3624e91dcbd","block_type":"box","text":"dealer, usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed.","page_number":495,"box":{"x":116,"y":676,"width":763,"height":12}},{"id":"ceea1c4c-b8f3-4c18-aee0-0568d558ca69","block_type":"box","text":"With respect to uncovered short positions, a Fund is required to deposit similar collateral with its","page_number":495,"box":{"x":116,"y":692,"width":712,"height":12}},{"id":"65c846b3-716e-490d-942f-61ab73bdaf08","block_type":"box","text":"custodian, if necessary, to the extent that the value of both collateral deposits in the aggregate is at all","page_number":495,"box":{"x":116,"y":707,"width":757,"height":12}},{"id":"b15b75f9-85a8-4ab4-80cd-222535d8e3c7","block_type":"box","text":"times equal to at least 100% of the current market value of the security sold short. Depending on","page_number":495,"box":{"x":116,"y":723,"width":717,"height":12}},{"id":"d414307e-66db-414a-98fe-5333a608d1e2","block_type":"box","text":"arrangements made with the broker-dealer from which the Fund borrowed the security, regarding","page_number":495,"box":{"x":116,"y":738,"width":720,"height":12}},{"id":"df1f0289-7e01-43aa-a87e-4444a7efedfa","block_type":"box","text":"payment received by the Fund on such security, a Fund may not receive any payments (including","page_number":495,"box":{"x":117,"y":754,"width":722,"height":12}},{"id":"805391e5-6f75-4c12-ae91-6728627e77f6","block_type":"box","text":"interest) on its collateral deposited with such broker-dealer.","page_number":495,"box":{"x":117,"y":769,"width":437,"height":12}},{"id":"29363445-eee0-4883-b328-bbc66f6d530b","block_type":"box","text":"Because making short sales in securities that it does not own exposes a Fund to the risks associated","page_number":495,"box":{"x":117,"y":800,"width":748,"height":12}},{"id":"52f10786-28e5-4030-b81c-b4fafa8289f7","block_type":"box","text":"with those securities, such short sales involve speculative exposure risk. A Fund will incur a loss as a","page_number":495,"box":{"x":116,"y":816,"width":750,"height":12}},{"id":"8d6eb386-0cba-4053-9648-f4812e62b523","block_type":"box","text":"result of a short sale if the price of the security increases between the date of the short sale and the","page_number":495,"box":{"x":117,"y":831,"width":743,"height":12}},{"id":"a022a42d-dabd-48c0-92ee-80cfb7445f96","block_type":"box","text":"date on which the Fund replaces the borrowed security. As a result, if a Fund makes short sales in","page_number":495,"box":{"x":116,"y":847,"width":735,"height":12}},{"id":"c95efad0-4eb9-481a-b98d-618175886fd9","block_type":"box","text":"securities that increase in value, it will likely underperform similar mutual funds that do not make short","page_number":495,"box":{"x":116,"y":862,"width":759,"height":12}},{"id":"1022189a-f718-49d5-bd2e-5dcb8487091a","block_type":"box","text":"sales in securities. A Fund will realize a gain on a short sale if the security declines in price between","page_number":495,"box":{"x":116,"y":878,"width":746,"height":12}},{"id":"cd46d63c-e56f-46e1-884e-f9464f9c1c42","block_type":"box","text":"II-97","page_number":495,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"b48ed3c4-e374-4675-8565-db71bbd28d1c","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":495,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a3b7653d-2e9a-4e1b-bc2a-9181ad131802","block_type":"box","text":"those dates. There can be no assurance that a Fund will be able to close out a short sale position at","page_number":496,"box":{"x":116,"y":87,"width":747,"height":12}},{"id":"771e3d2d-c843-431d-9550-157f6863f5d9","block_type":"box","text":"any particular time or at an acceptable price. Although a Fund’s gain is limited to the price at which it","page_number":496,"box":{"x":116,"y":103,"width":750,"height":12}},{"id":"074f4061-42d4-4a41-8b9e-abee0eb007c5","block_type":"box","text":"sold the security short, its potential loss is limited only by the maximum attainable price of the security,","page_number":496,"box":{"x":116,"y":118,"width":764,"height":12}},{"id":"e9e74e82-9938-48de-9524-f780344f2d47","block_type":"box","text":"less the price at which the security was sold and may, theoretically, be unlimited.","page_number":496,"box":{"x":117,"y":134,"width":603,"height":12}},{"id":"2d6d88f8-13cb-475e-b44d-bd0b82449d60","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":496,"box":{"x":116,"y":168,"width":698,"height":12}},{"id":"5f307dee-0c3f-40b7-bbd1-8c12326bb1fd","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its short sale","page_number":496,"box":{"x":116,"y":202,"width":756,"height":12}},{"id":"852e04e0-36c7-4215-ba5c-251a46ee6d63","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “— Derivatives —","page_number":496,"box":{"x":117,"y":217,"width":734,"height":12}},{"id":"651b4585-7721-4651-bef1-1d220e4f74cf","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":496,"box":{"x":117,"y":233,"width":624,"height":12}},{"id":"d0ec3707-672c-4cb0-aab0-7b8df744c451","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United","page_number":496,"box":{"x":116,"y":267,"width":712,"height":12}},{"id":"2ef4b1d1-26d5-4a82-bf72-3d2c22051ace","block_type":"box","text":"Kingdom regulations (under which there are restrictions on net short sales in certain securities). If the","page_number":496,"box":{"x":117,"y":282,"width":755,"height":12}},{"id":"ac00d047-45ba-401f-a030-64ad6535e0b6","block_type":"box","text":"SEC or regulatory authorities in other jurisdictions were to adopt additional restrictions regarding short","page_number":496,"box":{"x":116,"y":298,"width":761,"height":12}},{"id":"31ab0ba9-4b4f-45d4-87df-71dcc7d2fe88","block_type":"box","text":"sales, they could restrict a Fund’s ability to engage in short sales in certain circumstances, and the","page_number":496,"box":{"x":116,"y":314,"width":736,"height":11}},{"id":"f34c1278-2c80-489d-b9af-cacec1300d12","block_type":"box","text":"Fund may be unable to execute its investment strategy as a result. In response to market events, the","page_number":496,"box":{"x":117,"y":329,"width":753,"height":12}},{"id":"a84df17e-ed19-4722-8533-2891e1e14d76","block_type":"box","text":"SEC and regulatory authorities in other jurisdictions may adopt (and in certain cases, have adopted)","page_number":496,"box":{"x":116,"y":344,"width":747,"height":12}},{"id":"18ecd75c-0813-4db8-b48f-d8890dc2d849","block_type":"box","text":"bans or other restrictions on short sales of certain securities or on derivatives and other hedging","page_number":496,"box":{"x":117,"y":360,"width":717,"height":12}},{"id":"a3a5d60d-6a05-453d-86f1-2b2e7074946b","block_type":"box","text":"instruments used to achieve a similar economic effect. Such bans or other restrictions may make it","page_number":496,"box":{"x":117,"y":375,"width":736,"height":12}},{"id":"1addbe03-4c6b-4b17-b31e-3660846b46c3","block_type":"box","text":"impossible for a Fund to execute certain investment strategies and may have a material adverse effect","page_number":496,"box":{"x":117,"y":391,"width":765,"height":12}},{"id":"c99f106b-06b6-460c-bff0-f7b7511973b6","block_type":"box","text":"on the Fund’s ability to generate returns.","page_number":496,"box":{"x":116,"y":407,"width":306,"height":11}},{"id":"48ae1778-72be-45aa-9e8b-c359d32ac923","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":496,"box":{"x":117,"y":440,"width":325,"height":12}},{"id":"d7c0e3af-d728-49a5-b1a1-b0a7fe5882d5","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other","page_number":496,"box":{"x":443,"y":441,"width":411,"height":12}},{"id":"d95b8372-b022-48a3-9dda-a3fa464a1cd1","block_type":"box","text":"interests issued by special purpose acquisition companies (“SPACs”) or similar special purpose entities","page_number":496,"box":{"x":117,"y":456,"width":770,"height":12}},{"id":"d3c6da5a-0a4b-48b3-b199-de02f785a157","block_type":"box","text":"that pool funds to seek potential acquisition opportunities, including the “founder’s” shares and","page_number":496,"box":{"x":116,"y":471,"width":704,"height":13}},{"id":"f5dad341-b595-4b87-a108-b6a4fd8abcdb","block_type":"box","text":"warrants described below. A SPAC is a publicly traded company that raises investment capital via an","page_number":496,"box":{"x":116,"y":487,"width":755,"height":12}},{"id":"b41abb62-221a-4c97-bfb1-8b3e32cf71c7","block_type":"box","text":"IPO for the purpose of identifying and acquiring one or more operating businesses or assets. In","page_number":496,"box":{"x":117,"y":502,"width":711,"height":13}},{"id":"d01402df-7611-461e-a109-c087ccc6b981","block_type":"box","text":"connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s” shares, generally for","page_number":496,"box":{"x":116,"y":518,"width":716,"height":12}},{"id":"e973a3fb-5187-46dd-8dda-5388e0a79eb3","block_type":"box","text":"nominal consideration, and warrants that will result in the sponsors owning a specified percentage","page_number":496,"box":{"x":117,"y":534,"width":731,"height":12}},{"id":"ead0eca4-ab5f-4857-952e-2191086762e0","block_type":"box","text":"(typically 20%) of the SPAC’s outstanding common stock upon completion of the IPO. At the time a","page_number":496,"box":{"x":117,"y":549,"width":740,"height":12}},{"id":"a6e91fc9-af18-42a8-acdf-fea860d8f295","block_type":"box","text":"SPAC conducts an IPO, it has selected a management team but has not yet identified a specific","page_number":496,"box":{"x":116,"y":565,"width":718,"height":12}},{"id":"797d96c9-04aa-4aef-b87b-b0074290a689","block_type":"box","text":"acquisition opportunity. Unless and until an acquisition is completed, a SPAC generally invests its","page_number":496,"box":{"x":116,"y":580,"width":728,"height":12}},{"id":"bba8d8a9-a39d-48f0-b16c-66f698f51992","block_type":"box","text":"assets in U.S. Government securities, money market securities and cash. If an acquisition that meets","page_number":496,"box":{"x":116,"y":596,"width":756,"height":12}},{"id":"5eb94d4d-39bc-45ce-9472-93e16d1cb9db","block_type":"box","text":"the requirements for the SPAC is not completed within a pre-established period of time, the invested","page_number":496,"box":{"x":116,"y":611,"width":749,"height":12}},{"id":"81610a84-9381-4fac-8d2b-a206365b3ae9","block_type":"box","text":"funds are returned to the SPAC’s public shareholders, the warrants expire, and the “founder’s” shares","page_number":496,"box":{"x":116,"y":627,"width":761,"height":11}},{"id":"8c478cc2-c967-4531-8115-ca651761b30c","block_type":"box","text":"and such warrants become worthless. Because SPACs and similar entities are in essence “blank","page_number":496,"box":{"x":116,"y":642,"width":725,"height":10}},{"id":"e0aa2fd1-256d-4765-b58a-362540dc523c","block_type":"box","text":"check” companies without operating histories or ongoing business operations (other than identifying","page_number":496,"box":{"x":116,"y":658,"width":745,"height":12}},{"id":"49fc96ea-bc60-4275-ba10-7a9e68bdf6eb","block_type":"box","text":"and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":496,"box":{"x":116,"y":673,"width":722,"height":12}},{"id":"026323f2-3ef9-4d93-b582-e753ab1ad2b7","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable","page_number":496,"box":{"x":117,"y":689,"width":746,"height":12}},{"id":"517a0291-7417-4fa4-a1ef-a81ff8dbfe57","block_type":"box","text":"acquisition. There is no guarantee that the SPACs in which a Fund invests will complete an acquisition","page_number":496,"box":{"x":116,"y":704,"width":760,"height":12}},{"id":"6bfc75bb-c68f-4102-b5c1-f7d1996bf8fc","block_type":"box","text":"or that any acquisitions completed by the SPACs in which a Fund invests will be profitable. Some","page_number":496,"box":{"x":116,"y":720,"width":721,"height":12}},{"id":"f117fd5a-99db-424b-9f14-32a23ae30095","block_type":"box","text":"SPACs may pursue acquisitions only within certain industries or regions, which may ultimately lead to","page_number":496,"box":{"x":116,"y":735,"width":753,"height":12}},{"id":"790441e9-64fe-4446-accf-cdc13f6d8795","block_type":"box","text":"an increase in the volatility of their prices following the acquisition. In addition, some of these securities","page_number":496,"box":{"x":116,"y":751,"width":762,"height":12}},{"id":"68de1fd2-35c1-4a3a-88e6-e26ba4f115ef","block_type":"box","text":"may be considered illiquid and/or subject to restrictions on resale.","page_number":496,"box":{"x":117,"y":766,"width":485,"height":12}},{"id":"1ffcafbd-e978-4bcd-abc1-1242fe355b5e","block_type":"box","text":"Standby Commitment Agreements.","page_number":496,"box":{"x":117,"y":800,"width":278,"height":12}},{"id":"de591baa-1ffe-4d13-97a3-30633e3f188a","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated","page_number":496,"box":{"x":402,"y":800,"width":459,"height":12}},{"id":"f24df3ca-21e8-41c7-ac77-95db216ae8e9","block_type":"box","text":"period of time, to purchase a stated amount of securities that may be issued and sold to that Fund at","page_number":496,"box":{"x":117,"y":816,"width":746,"height":12}},{"id":"251e98a9-bb8a-4233-8368-b42e0d01489e","block_type":"box","text":"the option of the issuer. The price of the security is fixed at the time of the commitment. At the time of","page_number":496,"box":{"x":116,"y":831,"width":756,"height":12}},{"id":"edfa1114-0b73-4a69-9d3b-8a85d305666c","block_type":"box","text":"entering into the agreement, the Fund is paid a commitment fee, regardless of whether or not the","page_number":496,"box":{"x":116,"y":847,"width":725,"height":12}},{"id":"a2e49eb1-2eff-455c-b59d-0cd0d2a07f0b","block_type":"box","text":"security is ultimately issued. A Fund will enter into such agreements for the purpose of investing in the","page_number":496,"box":{"x":116,"y":862,"width":762,"height":12}},{"id":"58031b65-bac7-4508-a604-11706eaf6271","block_type":"box","text":"security underlying the commitment at a price that is considered advantageous to the Fund.","page_number":496,"box":{"x":116,"y":878,"width":685,"height":12}},{"id":"8ce48d2e-8a3f-4449-a97d-4873ecb6d7de","block_type":"box","text":"II-98","page_number":496,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"5c01b0a9-d238-488a-b1b7-814d6e1cd0ba","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":496,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"534f7d2d-62f8-482e-8439-fad8760283b9","block_type":"box","text":"There can be no assurance that the securities subject to a standby commitment will be issued, and the","page_number":497,"box":{"x":116,"y":87,"width":767,"height":12}},{"id":"c9ba634a-9207-4df0-b429-c5e06f6eb6a5","block_type":"box","text":"value of the security, if issued, on the delivery date may be more or less than its purchase price. Since","page_number":497,"box":{"x":116,"y":102,"width":764,"height":13}},{"id":"36e99206-d4a1-4e50-9d99-85020c31401a","block_type":"box","text":"the issuance of the security underlying the commitment is at the option of the issuer, the Fund may","page_number":497,"box":{"x":116,"y":118,"width":738,"height":12}},{"id":"e746f8ac-76c5-4603-8e26-faa0c2e526ff","block_type":"box","text":"bear the risk of a decline in the value of such security and may not benefit from an appreciation in the","page_number":497,"box":{"x":117,"y":134,"width":756,"height":12}},{"id":"27cbee47-d1b6-45c1-a88c-e2290067553b","block_type":"box","text":"value of the security during the commitment period.","page_number":497,"box":{"x":116,"y":149,"width":386,"height":12}},{"id":"a5633e07-2fcc-4382-90d9-e76e3de327e4","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment","page_number":497,"box":{"x":116,"y":180,"width":756,"height":12}},{"id":"df93556b-3da1-4ce4-a614-9401e4e9aa4c","block_type":"box","text":"fee will be recorded on the date on which the security can reasonably be expected to be issued, and the","page_number":497,"box":{"x":116,"y":196,"width":769,"height":12}},{"id":"1c58d1ae-8988-4282-83b7-d375dd43d69c","block_type":"box","text":"value of the security thereafter will be reflected in the calculation of a Fund’s NAV. The cost basis of the","page_number":497,"box":{"x":116,"y":211,"width":765,"height":12}},{"id":"cb5e359c-94a2-487a-8c46-04b11455743b","block_type":"box","text":"security will be adjusted by the amount of the commitment fee. In the event the security is not issued,","page_number":497,"box":{"x":116,"y":227,"width":748,"height":12}},{"id":"c214043b-18cd-43fe-9882-09c5fc467725","block_type":"box","text":"the commitment fee will be recorded as income on the expiration date of the standby commitment.","page_number":497,"box":{"x":116,"y":242,"width":727,"height":12}},{"id":"7ed3c37f-db49-44ac-b555-695a0fdae55a","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the","page_number":497,"box":{"x":116,"y":273,"width":744,"height":12}},{"id":"deaeafc5-7cce-45db-9d36-58ed739ec651","block_type":"box","text":"Manager’s or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby","page_number":497,"box":{"x":117,"y":289,"width":693,"height":12}},{"id":"778d81c5-215c-48d5-a36e-9cae978f1ca1","block_type":"box","text":"commitments solely to facilitate portfolio liquidity and not to exercise its rights thereunder for trading","page_number":497,"box":{"x":116,"y":304,"width":744,"height":12}},{"id":"bbc69d03-8ea5-446a-adbc-f0f0026fcaae","block_type":"box","text":"purposes. Standby commitments will be valued at zero in determining NAV. Accordingly, where a Fund","page_number":497,"box":{"x":117,"y":320,"width":769,"height":12}},{"id":"992e53b6-54c8-46c1-b2e1-a499866c0528","block_type":"box","text":"pays directly or indirectly for a standby commitment, its cost will be reflected as an unrealized loss for","page_number":497,"box":{"x":117,"y":335,"width":756,"height":12}},{"id":"a4153e27-3650-49b5-bbf9-bac15477391e","block_type":"box","text":"the period during which the commitment is held by such Fund and will be reflected as a realized gain or","page_number":497,"box":{"x":116,"y":351,"width":771,"height":12}},{"id":"1bef56c6-12cf-4625-a4d3-46a837045888","block_type":"box","text":"loss when the commitment is exercised or expires.","page_number":497,"box":{"x":117,"y":366,"width":380,"height":12}},{"id":"d96c12a0-7c09-4ed9-845e-2a064e37c722","block_type":"box","text":"Stripped Securities.","page_number":497,"box":{"x":117,"y":397,"width":152,"height":12}},{"id":"28127b5f-77b7-49c3-8646-4f61ca5be9ee","block_type":"box","text":"Stripped securities are created when the iss","page_number":497,"box":{"x":270,"y":397,"width":324,"height":12}},{"id":"03a0b3c8-0021-4741-a756-20b360045c79","block_type":"box","text":"uer separates the interest and principal","page_number":497,"box":{"x":595,"y":397,"width":288,"height":12}},{"id":"ebcdf7bf-9bb3-4753-915e-17787945c8ef","block_type":"box","text":"components of an instrument and sells them as separate","page_number":497,"box":{"x":116,"y":413,"width":418,"height":12}},{"id":"47123305-5203-4e62-949b-11423c33e11c","block_type":"box","text":"securities. In general, one security is entitled to","page_number":497,"box":{"x":535,"y":413,"width":345,"height":12}},{"id":"d2c9df81-34b1-4774-b3e8-e95fd1bd6b31","block_type":"box","text":"receive the interest payments on the underlying assets","page_number":497,"box":{"x":117,"y":428,"width":401,"height":12}},{"id":"191842f8-9682-4f15-a9e5-49a49273d91f","block_type":"box","text":"(the interest only or “IO” security) and the other to","page_number":497,"box":{"x":519,"y":428,"width":364,"height":12}},{"id":"88656afc-3bc8-466c-9d48-933ee6036290","block_type":"box","text":"receive the principal payments (the principal only or","page_number":497,"box":{"x":117,"y":444,"width":378,"height":12}},{"id":"7dcbcf99-425c-402f-8f96-2b93c96bb8d5","block_type":"box","text":"“PO” security). Some stripped","page_number":497,"box":{"x":496,"y":444,"width":221,"height":12}},{"id":"9df59052-a8df-46bf-9030-552099bf8ddf","block_type":"box","text":"securities may receive","page_number":497,"box":{"x":717,"y":444,"width":167,"height":12}},{"id":"ec0ab2cb-78e5-499c-9ff9-f3d24a2a36c2","block_type":"box","text":"a combination of interest and principal payments. The","page_number":497,"box":{"x":116,"y":459,"width":395,"height":12}},{"id":"b729785e-c834-4d8d-8aa0-10eedadce24c","block_type":"box","text":"yields to maturity on IOs and POs are sensitive to","page_number":497,"box":{"x":511,"y":459,"width":365,"height":12}},{"id":"80fc021d-fb40-4572-9ad2-409d6dcc0cc8","block_type":"box","text":"the expected or anticipated rate of principal paym","page_number":497,"box":{"x":116,"y":475,"width":358,"height":12}},{"id":"fcdedce0-59e0-4521-b2fe-f1151f8ed759","block_type":"box","text":"ents (including prepayments)","page_number":497,"box":{"x":476,"y":475,"width":209,"height":12}},{"id":"4b3bb5a2-4b0d-4a00-83ed-345b765a83e2","block_type":"box","text":"on the related underlying","page_number":497,"box":{"x":686,"y":475,"width":191,"height":12}},{"id":"93b90d0e-79af-4536-b11d-186ad40fef96","block_type":"box","text":"assets, and principal payments may have a material e","page_number":497,"box":{"x":116,"y":490,"width":392,"height":12}},{"id":"c57bb780-831d-4a48-8008-65b70a8a9748","block_type":"box","text":"ffect on yield to maturity. If the underlying assets","page_number":497,"box":{"x":508,"y":490,"width":357,"height":12}},{"id":"a993d672-856e-4f43-b8b3-cae345592a5b","block_type":"box","text":"experience greater than anticipated","page_number":497,"box":{"x":116,"y":506,"width":262,"height":12}},{"id":"811eaaa9-337b-4070-8e6a-f097c5f1f4f5","block_type":"box","text":"prepayments of principal, a Fund may not fully recoup its initial","page_number":497,"box":{"x":379,"y":506,"width":458,"height":12}},{"id":"d59a05b1-128a-46c0-88e8-e8bb838a46da","block_type":"box","text":"investment in IOs. Conversely, if the underlying a","page_number":497,"box":{"x":117,"y":521,"width":356,"height":12}},{"id":"ae9a93b8-a40a-4b07-a78d-fa040f04ae3d","block_type":"box","text":"ssets experience less than anticipated prepayments of","page_number":497,"box":{"x":474,"y":521,"width":400,"height":12}},{"id":"e501d23d-2716-40dd-80f9-fc74ed66ac3a","block_type":"box","text":"principal, the yield on POs could be adversely affect","page_number":497,"box":{"x":117,"y":537,"width":376,"height":12}},{"id":"55a2272d-68e6-493b-88ce-5912b28d47a8","block_type":"box","text":"ed. Stripped securities may be highly sensitive to","page_number":497,"box":{"x":494,"y":537,"width":359,"height":12}},{"id":"13f560ab-d302-4738-baad-33de76b3cd1d","block_type":"box","text":"changes in interest rates and rates of prepayment.","page_number":497,"box":{"x":116,"y":552,"width":371,"height":12}},{"id":"f4e46220-b7b4-4fef-9ea4-1b8bd82ee475","block_type":"box","text":"Structured Notes.","page_number":497,"box":{"x":117,"y":583,"width":139,"height":10}},{"id":"979abb02-7f8f-4607-9d95-cc3232449b3b","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally","page_number":497,"box":{"x":257,"y":583,"width":621,"height":12}},{"id":"13d3639f-f62d-420a-9b02-d043990ad23a","block_type":"box","text":"privately negotiated debt obligations where the principal and/or interest is determined by reference to","page_number":497,"box":{"x":117,"y":599,"width":753,"height":12}},{"id":"33473ca4-cd8f-42d7-bce0-9140c6cd513a","block_type":"box","text":"the performance of a specific asset, benchmark asset, market or interest rate (“reference measure”).","page_number":497,"box":{"x":116,"y":614,"width":751,"height":12}},{"id":"f73b3ad7-9ed2-43e8-93c9-2fd50f3c5705","block_type":"box","text":"Issuers of structured notes generally include corporations and banks. The interest rate or the principal","page_number":497,"box":{"x":117,"y":630,"width":760,"height":12}},{"id":"4b6cef31-e247-4578-b7b0-c74e22948d80","block_type":"box","text":"amount payable upon maturity or redemption may increase or decrease, depending upon changes in","page_number":497,"box":{"x":116,"y":645,"width":754,"height":12}},{"id":"1d96f1b3-1c99-4dfb-97bd-3ac7f8911421","block_type":"box","text":"the value of the reference measure. The terms of a structured note may provide that, in certain","page_number":497,"box":{"x":116,"y":661,"width":702,"height":12}},{"id":"1bd6b1f2-53d2-4a65-b03f-e4848d94cadc","block_type":"box","text":"circumstances, no principal is due at maturity and, therefore, may result in a loss of invested capital by","page_number":497,"box":{"x":116,"y":676,"width":761,"height":12}},{"id":"5426f884-7ad5-485d-9b0a-376a97a9843e","block_type":"box","text":"a Fund. The interest and/or principal payments that may be made on a structured product may vary","page_number":497,"box":{"x":116,"y":692,"width":738,"height":12}},{"id":"b958cc22-9a39-4337-8aba-ddac92f50a03","block_type":"box","text":"widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":497,"box":{"x":116,"y":707,"width":664,"height":12}},{"id":"b07184e7-6a27-40a9-9587-4244dbc29564","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure","page_number":497,"box":{"x":116,"y":738,"width":765,"height":12}},{"id":"9718e15f-4038-445d-be2b-dba0964c8392","block_type":"box","text":"may produce an increase or a decrease in the interest rate or the value of the principal at maturity. The","page_number":497,"box":{"x":117,"y":754,"width":763,"height":12}},{"id":"beb5437d-76a9-43c5-940d-a04a61ce3b4a","block_type":"box","text":"rate of return on structured notes may be determined by applying a multiplier to the performance or","page_number":497,"box":{"x":117,"y":769,"width":735,"height":12}},{"id":"824a51dc-5d2c-4149-a5f7-52243587b48d","block_type":"box","text":"differential performance of reference measures. Application of a multiplier involves leverage that will","page_number":497,"box":{"x":116,"y":785,"width":741,"height":12}},{"id":"f835b8ea-26e1-41b7-8bcf-927610135a07","block_type":"box","text":"serve to magnify the potential for gain and the risk of loss.","page_number":497,"box":{"x":116,"y":800,"width":429,"height":12}},{"id":"3e775ac7-fe7d-4db3-aace-52169fb4f829","block_type":"box","text":"The purchase of structured notes exposes a Fund to the credit risk of the issuer of the structured","page_number":497,"box":{"x":116,"y":831,"width":722,"height":12}},{"id":"9019a523-08a2-46c9-9297-1a8f7e451e4e","block_type":"box","text":"product. Structured notes may also be more volatile, less liquid, and more difficult to price accurately","page_number":497,"box":{"x":117,"y":847,"width":750,"height":12}},{"id":"05a8f0ca-2310-469b-bf6d-57c82622fd86","block_type":"box","text":"than less complex securities and instruments or more traditional debt securities. The secondary market","page_number":497,"box":{"x":116,"y":862,"width":770,"height":12}},{"id":"54c66f35-dacf-4de2-b634-5788ad32d624","block_type":"box","text":"for structured notes could be illiquid making them difficult to sell when the Fund determines to sell","page_number":497,"box":{"x":116,"y":878,"width":729,"height":12}},{"id":"a51564dc-d8a3-43a9-8e61-dbbd5eb120e8","block_type":"box","text":"II-99","page_number":497,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"d6aaa791-4189-4dba-882c-c017d6797b94","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":497,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2aeef393-4dca-4540-93ab-0db437c19097","block_type":"box","text":"them. The possible lack of a liquid secondary market for structured notes and the resulting inability of","page_number":498,"box":{"x":116,"y":87,"width":755,"height":12}},{"id":"505f035b-07d9-4f91-b39a-dec0900d04c4","block_type":"box","text":"the Fund to sell a structured note could expose the Fund to losses and could make structured notes","page_number":498,"box":{"x":116,"y":103,"width":746,"height":11}},{"id":"f58df029-440a-4c65-9924-1eae41927311","block_type":"box","text":"more difficult for the Fund to value accurately.","page_number":498,"box":{"x":117,"y":118,"width":344,"height":12}},{"id":"80469df4-432b-41c6-bc87-a3ba9dd47721","block_type":"box","text":"Taxability Risk.","page_number":498,"box":{"x":118,"y":149,"width":119,"height":12}},{"id":"ac25467d-d331-44b1-bb47-273fcaaade29","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to","page_number":498,"box":{"x":238,"y":149,"width":555,"height":12}},{"id":"9f43165c-d081-4400-8997-01b03d76e576","block_type":"box","text":"shareholders by investing in tax-exempt or municipal securities in reliance at the time of purchase on","page_number":498,"box":{"x":116,"y":165,"width":753,"height":12}},{"id":"69587e6d-1a1a-4c48-b655-96835a94c3cd","block_type":"box","text":"an opinion of bond counsel to the issuer and, in the case of derivative securities, sponsors’ counsel,","page_number":498,"box":{"x":116,"y":180,"width":745,"height":12}},{"id":"1398f74b-e814-434d-ad06-64f34dddee33","block_type":"box","text":"that the interest paid on those securities will be excludable from gross income for U.S. federal income","page_number":498,"box":{"x":116,"y":196,"width":759,"height":12}},{"id":"80565b50-8f2a-4cd6-a3cf-2897404f93cf","block_type":"box","text":"tax purposes. Such securities, however, may be determined to pay, or have paid, taxable income","page_number":498,"box":{"x":116,"y":211,"width":726,"height":12}},{"id":"c413e2e9-fabd-4851-9f7e-5d612e581dd4","block_type":"box","text":"subsequent to the Fund’s acquisition of the securities. In that event, the IRS may demand that the","page_number":498,"box":{"x":116,"y":227,"width":731,"height":12}},{"id":"c55d5306-6d6a-4389-a9eb-87723cf69366","block_type":"box","text":"Fund pay U.S. federal income taxes on the affected interest income, and, if the Fund agrees to do so,","page_number":498,"box":{"x":117,"y":242,"width":758,"height":12}},{"id":"80fcf4c3-561a-4a89-bff0-f2e36d900ee2","block_type":"box","text":"the Fund’s yield could be adversely affected. In addition, the treatment of dividends previously paid or","page_number":498,"box":{"x":116,"y":258,"width":758,"height":12}},{"id":"82834c79-c39a-4745-81e1-96431c8da9ee","block_type":"box","text":"to be paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the","page_number":498,"box":{"x":116,"y":273,"width":724,"height":12}},{"id":"72134b8e-d52e-4f10-af98-d45da28e106a","block_type":"box","text":"Fund’s shareholders to increased U.S. federal income tax liabilities. If the interest paid on any","page_number":498,"box":{"x":117,"y":289,"width":699,"height":12}},{"id":"1f206b1a-d29c-466e-b6b7-3b85f9f49e5e","block_type":"box","text":"tax-exempt or municipal security held by the Fund is subsequently determined to be taxable, the Fund","page_number":498,"box":{"x":116,"y":304,"width":762,"height":12}},{"id":"21dc4fc9-4378-4ba6-8229-d77226692a3c","block_type":"box","text":"will dispose of that security as soon as reasonably practicable. In addition, future laws, regulations,","page_number":498,"box":{"x":116,"y":320,"width":738,"height":12}},{"id":"fd980e98-6e82-4dd5-8891-5969cf55f5b6","block_type":"box","text":"rulings or court decisions may cause interest on municipal securities to be subject, directly or indirectly,","page_number":498,"box":{"x":117,"y":335,"width":769,"height":12}},{"id":"82920fcc-69c2-43e7-8915-4a16420a96ad","block_type":"box","text":"to U.S. federal income taxation or interest on state municipal securities to be subject to state or local","page_number":498,"box":{"x":116,"y":351,"width":749,"height":12}},{"id":"3b461329-93e0-4dc0-937f-ccdee7725291","block_type":"box","text":"income taxation, or the value of state municipal securities to be subject to state or local intangible","page_number":498,"box":{"x":117,"y":366,"width":726,"height":12}},{"id":"24d2c316-2e6f-459a-990f-a74a380d4255","block_type":"box","text":"personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":498,"box":{"x":117,"y":382,"width":750,"height":12}},{"id":"fc58e883-9e4d-4b89-adf8-1a8dbb2bb6d8","block_type":"box","text":"tax-exempt status of such securities. Any such change could also affect the market price of such","page_number":498,"box":{"x":116,"y":397,"width":721,"height":12}},{"id":"246de9d0-5565-4d5f-9404-58a6ace1b56a","block_type":"box","text":"securities, and thus the value of an investment in the Fund.","page_number":498,"box":{"x":116,"y":413,"width":444,"height":11}},{"id":"6460f532-11c4-4986-9e48-7bc53781b8e6","block_type":"box","text":"Temporary Defensive Measures.","page_number":498,"box":{"x":118,"y":444,"width":255,"height":12}},{"id":"e6f3accf-b622-44bc-b6f1-137a943f26d3","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse","page_number":498,"box":{"x":374,"y":444,"width":514,"height":12}},{"id":"b7ed37cb-c123-4919-bb3e-3eaf1c5e3b5a","block_type":"box","text":"market, economic, political or other conditions, a Fund may depart from its principal investment","page_number":498,"box":{"x":117,"y":459,"width":709,"height":12}},{"id":"9c05dddc-421a-47ca-9aa7-aa672d567c1a","block_type":"box","text":"strategies and may invest without limitation in cash, high quality money market instruments, or other","page_number":498,"box":{"x":116,"y":475,"width":747,"height":12}},{"id":"07129d22-6ed7-4542-b8e3-afb9848d16c2","block_type":"box","text":"short term investments. Certain Funds may also invest in cash and other such instruments pending","page_number":498,"box":{"x":116,"y":490,"width":741,"height":12}},{"id":"964d68a1-c2d3-4224-907e-5e7068042db8","block_type":"box","text":"investment or to meet anticipated redemption requests. High quality money market instruments include","page_number":498,"box":{"x":117,"y":506,"width":768,"height":12}},{"id":"fc926589-d77c-413f-a903-e3164dbf8ab1","block_type":"box","text":"U.S. Government obligations, U.S. Government agency obligations, dollar denominated obligations of","page_number":498,"box":{"x":117,"y":521,"width":758,"height":12}},{"id":"e38e3f36-8b85-4b6a-87b5-54efe41dce52","block_type":"box","text":"foreign issuers, bank obligations, including U.S. subsidiaries and branches of foreign banks, corporate","page_number":498,"box":{"x":116,"y":537,"width":763,"height":12}},{"id":"5cff6502-2621-4727-a7a1-c96ae447310a","block_type":"box","text":"obligations, commercial paper, repurchase agreements and obligations of supranational organizations.","page_number":498,"box":{"x":116,"y":552,"width":767,"height":12}},{"id":"59fe7695-c5e0-4de2-acc1-7ba2ac799939","block_type":"box","text":"Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":498,"box":{"x":117,"y":568,"width":735,"height":12}},{"id":"4784eb29-a3c6-477e-ade4-f2dfe327c137","block_type":"box","text":"within two years from the date of settlement. Temporary defensive measures may affect a Fund’s","page_number":498,"box":{"x":116,"y":583,"width":727,"height":12}},{"id":"1a519aca-7617-4e05-828f-6ccf6e872243","block_type":"box","text":"ability to achieve its investment objective.","page_number":498,"box":{"x":116,"y":599,"width":312,"height":12}},{"id":"de9e0ca8-5034-4b8c-9448-f5a72aa8c46a","block_type":"box","text":"U.S. Government Obligations.","page_number":498,"box":{"x":117,"y":630,"width":236,"height":12}},{"id":"c178eda5-d376-4afc-b9fb-f784854872dd","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S.","page_number":498,"box":{"x":354,"y":630,"width":510,"height":12}},{"id":"040bf367-af3e-4747-a099-3eb57d1bd30a","block_type":"box","text":"Government and U.S. Government agencies and instrumentalities. Obligations of certain agencies and","page_number":498,"box":{"x":117,"y":645,"width":767,"height":12}},{"id":"f78aa069-d150-48e1-8ac2-364561b9db16","block_type":"box","text":"instrumentalities of the U.S. Government are supported by the full faith and credit of the U.S. Treasury.","page_number":498,"box":{"x":117,"y":661,"width":761,"height":12}},{"id":"b5ff262c-1f1e-4b16-bc59-47a994216ed7","block_type":"box","text":"Others are supported by the right of the issuer to borrow from the U.S. Treasury; and still others are","page_number":498,"box":{"x":116,"y":676,"width":740,"height":12}},{"id":"a4514ce3-a298-4b2a-901a-7cffcccde1d8","block_type":"box","text":"supported only by the credit of the agency or instrumentality issuing the obligation. No assurance can","page_number":498,"box":{"x":116,"y":692,"width":751,"height":12}},{"id":"751360b8-b0a3-4631-a199-9a57e4831039","block_type":"box","text":"be given that the U.S. Government will provide financial support to U.S. Government-sponsored","page_number":498,"box":{"x":117,"y":707,"width":710,"height":12}},{"id":"5ca91487-bd71-4103-8ccf-67472ff2a934","block_type":"box","text":"instrumentalities if it is not obligated to do so by law. Certain U.S. Treasury and agency securities may","page_number":498,"box":{"x":117,"y":723,"width":757,"height":12}},{"id":"9bb8eab7-ba0f-4ea5-9abb-8e2efa0f6f20","block_type":"box","text":"be held by trusts that issue participation certificates (such as Treasury income growth receipts and","page_number":498,"box":{"x":117,"y":738,"width":728,"height":12}},{"id":"427a90c9-7747-4098-806c-8a67548f8f33","block_type":"box","text":"certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":498,"box":{"x":116,"y":754,"width":734,"height":12}},{"id":"660f8b12-85ee-4258-8d98-8bbb1272a561","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or","page_number":498,"box":{"x":116,"y":769,"width":754,"height":12}},{"id":"7328a880-c434-4a39-ae10-f9a84087f7e9","block_type":"box","text":"the future principal payments on U.S. Government obligations. These instruments are issued at a","page_number":498,"box":{"x":116,"y":785,"width":721,"height":12}},{"id":"febdaeaf-b8be-49e7-8f99-389b7fa42e23","block_type":"box","text":"discount to their “face value” and may (particularly in the case of stripped mortgage-backed securities)","page_number":498,"box":{"x":116,"y":800,"width":758,"height":12}},{"id":"e0c231fa-02e8-48c6-8f48-bdabbe0d2d3b","block_type":"box","text":"exhibit greater price volatility than ordinary debt securities because of the manner in which their","page_number":498,"box":{"x":116,"y":816,"width":708,"height":12}},{"id":"e7b13ce0-e29f-41cd-9e77-f92aa7634845","block_type":"box","text":"principal and interest are returned to investors.","page_number":498,"box":{"x":117,"y":831,"width":351,"height":12}},{"id":"7872dab8-d72a-4c23-85a1-9354330a66b1","block_type":"box","text":"Examples of the types of U.S. Government obligations that may be held by the Funds include U.S.","page_number":498,"box":{"x":117,"y":862,"width":734,"height":12}},{"id":"1b82b913-1d09-4166-a189-527a5ff5776c","block_type":"box","text":"Treasury Bills, Treasury Notes and Treasury Bonds and the obligations of the Federal Housing","page_number":498,"box":{"x":116,"y":878,"width":708,"height":12}},{"id":"602a18b7-bced-4c6d-9716-736c653aa682","block_type":"box","text":"II-100","page_number":498,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"d6574ce5-f363-4598-a8df-c354f08b153e","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":498,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f0241246-ecd2-4a1d-9c5c-2b59fa2972a6","block_type":"box","text":"Administration, Farmers Home Administration, Export-Import Bank of the United States, Small","page_number":499,"box":{"x":116,"y":87,"width":703,"height":12}},{"id":"d59091d2-a97c-43d4-9227-e8e17bcc5c20","block_type":"box","text":"Business Administration, Ginnie Mae, Fannie Mae, Federal Financing Bank, General Services","page_number":499,"box":{"x":117,"y":102,"width":702,"height":13}},{"id":"11474509-cc1d-4bb3-aaf5-70e7d30f5159","block_type":"box","text":"Administration, Student Loan Marketing Association, Central Bank for Cooperatives, Federal Home","page_number":499,"box":{"x":116,"y":118,"width":741,"height":12}},{"id":"24a47407-6001-428e-b61a-76276aa95ffd","block_type":"box","text":"Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm Credit Banks","page_number":499,"box":{"x":117,"y":134,"width":771,"height":11}},{"id":"9509bb5b-9139-4a4b-a64a-28a4cbcbbc18","block_type":"box","text":"System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":499,"box":{"x":116,"y":149,"width":772,"height":12}},{"id":"057d5e8c-8ce4-47db-8f09-32c7978b956e","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government","page_number":499,"box":{"x":117,"y":165,"width":717,"height":12}},{"id":"17442460-1558-4184-8f0c-250c659cadb5","block_type":"box","text":"agencies and instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae","page_number":499,"box":{"x":116,"y":180,"width":754,"height":12}},{"id":"42353990-9e19-401a-a7ec-5b9f4d63ec1f","block_type":"box","text":"and Freddie Mac.","page_number":499,"box":{"x":116,"y":196,"width":135,"height":9}},{"id":"c7de9c31-5228-437f-b64f-2f25e67ad1aa","block_type":"box","text":"U.S. Treasury Obligations.","page_number":499,"box":{"x":117,"y":227,"width":194,"height":12}},{"id":"e846386a-50f1-4845-b11c-48224874190e","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of","page_number":499,"box":{"x":313,"y":227,"width":548,"height":12}},{"id":"fc6cd21e-167c-45ab-ab27-56047183d519","block_type":"box","text":"issuance and other characteristics. Obligations of U.S. Government agencies and authorities are","page_number":499,"box":{"x":117,"y":242,"width":721,"height":12}},{"id":"e87e0fd3-1d42-4baa-b430-4bc3f087ab8b","block_type":"box","text":"supported by varying degrees of credit but generally are not backed by the full faith and credit of the","page_number":499,"box":{"x":116,"y":258,"width":747,"height":12}},{"id":"867e6f44-2494-4abf-a6a1-9760e98c3eec","block_type":"box","text":"U.S. Government. No assurance can be given that the U.S. Government will provide financial support","page_number":499,"box":{"x":117,"y":273,"width":758,"height":12}},{"id":"29ec2411-b0df-4216-8ad2-ac410e68fb1b","block_type":"box","text":"to its agencies and authorities if it is not obligated by law to do so.","page_number":499,"box":{"x":116,"y":289,"width":493,"height":12}},{"id":"6d3c62f4-0846-42b9-bedf-607546926069","block_type":"box","text":"U.S. Treasury Rolls.","page_number":499,"box":{"x":117,"y":320,"width":153,"height":12}},{"id":"237f6ebd-ab54-4fa8-bd4a-087095087796","block_type":"box","text":"Certain Funds may invest in U.S. Treasury","page_number":499,"box":{"x":271,"y":320,"width":320,"height":12}},{"id":"a8398e86-eec2-4192-bc97-45c6d056dc1a","block_type":"box","text":"rolls. In a U.S. Treasury roll transaction,","page_number":499,"box":{"x":592,"y":320,"width":292,"height":12}},{"id":"cacfad50-7fac-4095-bd58-e3603c6cd1e6","block_type":"box","text":"the Fund sells a treasury security to a counterpa","page_number":499,"box":{"x":116,"y":335,"width":350,"height":12}},{"id":"d1a145f2-edb6-4da3-bab4-c3add7039846","block_type":"box","text":"rty with a simultaneous agreement to repurchase the","page_number":499,"box":{"x":468,"y":335,"width":387,"height":12}},{"id":"3b4f3229-5ac6-4b39-ab08-ada8d7308fa5","block_type":"box","text":"same security at an agreed upon price and future settl","page_number":499,"box":{"x":116,"y":351,"width":392,"height":12}},{"id":"fb553ee2-4459-472e-8e4a-613c345f9e41","block_type":"box","text":"ement date. U.S. Treasury roll transactions may","page_number":499,"box":{"x":510,"y":351,"width":353,"height":12}},{"id":"13b7bc43-7f2f-4859-a977-2167d8f275ae","block_type":"box","text":"incrementally adjust the average maturity of a Fund’","page_number":499,"box":{"x":117,"y":366,"width":376,"height":12}},{"id":"386aaa80-c124-4848-973c-ae784a51f44f","block_type":"box","text":"s portfolio and increase the interest yield on the","page_number":499,"box":{"x":494,"y":366,"width":348,"height":12}},{"id":"1064109b-b31b-4671-a095-33ae2ea6a6b8","block_type":"box","text":"Fund’s portfolio by extending the average maturity of the portfolio in a normal yield curve environment.","page_number":499,"box":{"x":117,"y":382,"width":746,"height":12}},{"id":"de49f5ee-67d7-4a06-9f02-81ec3c374edc","block_type":"box","text":"During the period before the settlement","page_number":499,"box":{"x":117,"y":397,"width":284,"height":12}},{"id":"626715e6-a3e1-4a1a-832d-9f5210c04488","block_type":"box","text":"date of a U.S. Treasury roll, a","page_number":499,"box":{"x":401,"y":397,"width":224,"height":12}},{"id":"c3ba2ad6-2920-44d6-8a5e-a24db533d87b","block_type":"box","text":"Fund continues to earn interest on","page_number":499,"box":{"x":626,"y":397,"width":254,"height":10}},{"id":"0e5ec314-a67a-44e0-8b6d-31d438a63dee","block_type":"box","text":"the securities it is selling; however, it does not earn in","page_number":499,"box":{"x":116,"y":413,"width":387,"height":12}},{"id":"d94deee3-c133-49c0-be17-cd36963d041b","block_type":"box","text":"terest on the securities it is purchasing until after the","page_number":499,"box":{"x":504,"y":413,"width":383,"height":12}},{"id":"72f9c5f0-c106-4f5c-84e6-c7b59e56c782","block_type":"box","text":"settlement date. A Fund could suffer an opportunity loss","page_number":499,"box":{"x":116,"y":428,"width":412,"height":12}},{"id":"4fcc7eed-7f48-4983-bde0-96e3d6ad4028","block_type":"box","text":"if the counterparty to the U.S. Treasury roll","page_number":499,"box":{"x":528,"y":428,"width":314,"height":12}},{"id":"c9d6fc74-9274-4129-a1e6-c8f41eac450b","block_type":"box","text":"transaction failed to perform its obligations on the settlement date.","page_number":499,"box":{"x":116,"y":444,"width":484,"height":12}},{"id":"ff6ce8cd-b25d-405d-9d77-a58e32aaead9","block_type":"box","text":"The market value of the securities that a Fund is required to purchase may decline below the agreed","page_number":499,"box":{"x":116,"y":475,"width":751,"height":12}},{"id":"df6f466b-98b4-48ba-8fe6-a79138b0e034","block_type":"box","text":"upon purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be","page_number":499,"box":{"x":117,"y":490,"width":737,"height":12}},{"id":"529b14fb-9d9a-421f-a559-ae92a85b153d","block_type":"box","text":"deemed to involve leverage. There is no assurance that U.S. Treasury rolls can be successfully","page_number":499,"box":{"x":116,"y":506,"width":714,"height":12}},{"id":"0e03a861-dcb2-473b-b90f-de09ab0d8f44","block_type":"box","text":"employed.","page_number":499,"box":{"x":116,"y":521,"width":82,"height":12}},{"id":"68f20b7f-ab3f-40c0-813b-c266070e40ec","block_type":"box","text":"Utility Industries.","page_number":499,"box":{"x":117,"y":552,"width":140,"height":12}},{"id":"422ea357-ee9b-4824-9331-2a7f1720fcd4","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an","page_number":499,"box":{"x":259,"y":552,"width":572,"height":12}},{"id":"73ea019c-4c97-4e24-a2e4-6432e0f9d46d","block_type":"box","text":"adequate return on invested capital, difficulty in financing large construction programs during an","page_number":499,"box":{"x":116,"y":568,"width":715,"height":12}},{"id":"362c898c-1355-4073-9983-13d1d44de45f","block_type":"box","text":"inflationary period, restrictions on operations and increased cost and delays attributable to","page_number":499,"box":{"x":117,"y":583,"width":672,"height":12}},{"id":"9d6e8f17-52e5-4814-a424-29d6244883f8","block_type":"box","text":"environmental considerations and regulation, difficulty in raising capital in adequate amounts on","page_number":499,"box":{"x":116,"y":599,"width":715,"height":12}},{"id":"37f1e42f-3da9-4778-b002-500877563280","block_type":"box","text":"reasonable terms in periods of high inflation and unsettled capital markets, technological innovations","page_number":499,"box":{"x":117,"y":614,"width":750,"height":12}},{"id":"467e7a67-07d3-4403-a380-bdae0a51440c","block_type":"box","text":"that may render existing plants, equipment or products obsolete, the potential impact of natural or","page_number":499,"box":{"x":116,"y":630,"width":729,"height":12}},{"id":"0b4841bd-9938-4795-8c0f-9e8fb911fd98","block_type":"box","text":"man-made disasters, increased costs and reduced availability of certain types of fuel, occasional","page_number":499,"box":{"x":117,"y":645,"width":721,"height":12}},{"id":"56f2c998-6fdb-4f77-80fe-cc6dfdb94dea","block_type":"box","text":"reduced availability and high costs of natural gas for resale, the effects of energy conservation, the","page_number":499,"box":{"x":117,"y":661,"width":731,"height":12}},{"id":"f78f49fa-7301-4fb1-b0fd-9ae8e2fa5f11","block_type":"box","text":"effects of a national energy policy and lengthy delays and greatly increased costs and other problems","page_number":499,"box":{"x":116,"y":676,"width":753,"height":12}},{"id":"f5352b89-1ec1-429f-9a57-b98fd0a1d7a1","block_type":"box","text":"associated with the design, construction, licensing, regulation and operation of nuclear facilities for","page_number":499,"box":{"x":116,"y":692,"width":730,"height":12}},{"id":"30ddf539-3859-4238-8528-9b13a239c530","block_type":"box","text":"electric generation, including, among other considerations, the problems associated with the use of","page_number":499,"box":{"x":116,"y":707,"width":736,"height":12}},{"id":"a3cacd6b-72d5-43be-b17a-f2524fec08b4","block_type":"box","text":"radioactive materials and the disposal of radioactive wastes. There are substantial differences among","page_number":499,"box":{"x":117,"y":723,"width":752,"height":12}},{"id":"2593cbd8-2622-4e1e-809d-b77fe63a257b","block_type":"box","text":"the regulatory practices and policies of various jurisdictions, and any given regulatory agency may","page_number":499,"box":{"x":116,"y":738,"width":727,"height":12}},{"id":"7213242f-c543-4d44-9a5d-8fadfc0e6d11","block_type":"box","text":"make major shifts in policy from time to time. There is no assurance that regulatory authorities will, in","page_number":499,"box":{"x":117,"y":754,"width":746,"height":12}},{"id":"a26158ab-9e8c-4008-be72-855a404826a9","block_type":"box","text":"the future, grant rate increases or that such increases will be adequate to permit the payment of","page_number":499,"box":{"x":116,"y":769,"width":712,"height":12}},{"id":"be017604-a773-44ad-9afa-e5fa41f6c95e","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future","page_number":499,"box":{"x":116,"y":785,"width":730,"height":12}},{"id":"268599a6-b1b9-41b6-8c36-7768407c8ffa","block_type":"box","text":"regulatory legislation may make it even more difficult for utilities to obtain adequate relief. Certain of the","page_number":499,"box":{"x":117,"y":800,"width":765,"height":12}},{"id":"c2bb5154-bce4-4799-8e34-7cfba6e8c57a","block_type":"box","text":"issuers of securities held in the Fund’s portfolio may own or operate nuclear generating facilities.","page_number":499,"box":{"x":117,"y":816,"width":714,"height":12}},{"id":"35ba7735-ce2f-4b83-8ea4-1f7c5598ea9b","block_type":"box","text":"Governmental authorities may from time to time review existing policies and impose additional","page_number":499,"box":{"x":117,"y":831,"width":702,"height":12}},{"id":"5d87bf93-7891-42ae-9f55-4e662151e428","block_type":"box","text":"requirements governing the licensing, construction and operation of nuclear power plants. Prolonged","page_number":499,"box":{"x":117,"y":847,"width":751,"height":12}},{"id":"11057243-8b25-4cb8-b569-5d446b82ea68","block_type":"box","text":"changes in climatic conditions can also have a significant impact on both the revenues of an electric","page_number":499,"box":{"x":116,"y":862,"width":746,"height":12}},{"id":"93cc1a2d-e4c6-4656-8fbb-361b828fc053","block_type":"box","text":"and gas utility as well as the expenses of a utility, particularly a hydro-based electric utility.","page_number":499,"box":{"x":116,"y":878,"width":675,"height":12}},{"id":"b406408e-6edd-4c8f-8ff9-522d66f424f7","block_type":"box","text":"II-101","page_number":499,"box":{"x":480,"y":909,"width":38,"height":9}},{"id":"3c518fff-e8c0-4289-a558-4c7731e46fe3","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":499,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2a4ae970-ec50-43e3-96b3-ec141c2a46b5","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic","page_number":500,"box":{"x":117,"y":87,"width":747,"height":12}},{"id":"c3bbf186-cd28-48b4-827f-48dd8ac63f2a","block_type":"box","text":"and international competition, and governmental limitations on rates charged to customers. The value","page_number":500,"box":{"x":116,"y":103,"width":759,"height":12}},{"id":"a7a4b80c-cf20-4637-af0a-c38e5d9f125c","block_type":"box","text":"of regulated utility debt securities and, to a lesser extent, equity securities, tends to have an inverse","page_number":500,"box":{"x":116,"y":118,"width":743,"height":12}},{"id":"9a622f8a-84be-43da-bf5e-9c69359d2978","block_type":"box","text":"relationship to the movement of interest rates and therefore may lead to volatility in performance.","page_number":500,"box":{"x":117,"y":134,"width":723,"height":12}},{"id":"61b75798-6d6c-4545-b812-7428853edde2","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the","page_number":500,"box":{"x":117,"y":165,"width":771,"height":12}},{"id":"47f9a2eb-836f-4243-8b7c-551f3b0834de","block_type":"box","text":"United States, most utility companies are regulated by state and/or federal authorities. Such regulation","page_number":500,"box":{"x":117,"y":180,"width":764,"height":12}},{"id":"dc7ebcba-dcd0-450d-8df5-dc27921a333f","block_type":"box","text":"is intended to ensure appropriate standards of service and adequate capacity to meet public demand.","page_number":500,"box":{"x":117,"y":196,"width":759,"height":12}},{"id":"4bc24f26-a625-460d-96ce-36ab94dc69c7","block_type":"box","text":"Generally, prices are also regulated in the United States and in foreign countries with the intention of","page_number":500,"box":{"x":117,"y":211,"width":750,"height":12}},{"id":"22e4cb1d-ad53-4e66-9cd8-5d4ebc79d437","block_type":"box","text":"protecting the public while ensuring that the rate of return earned by utility companies is sufficient to","page_number":500,"box":{"x":117,"y":227,"width":744,"height":12}},{"id":"a4c201f2-095c-4aad-916f-854541ae1a7d","block_type":"box","text":"allow them to attract capital in order to grow and continue to provide appropriate services. There can","page_number":500,"box":{"x":116,"y":242,"width":751,"height":12}},{"id":"5b7af35f-0fce-4d33-834b-b3f41cf79287","block_type":"box","text":"be no assurance that such pricing policies or rates of return will continue in the future.","page_number":500,"box":{"x":117,"y":258,"width":640,"height":12}},{"id":"a56010d0-df07-4327-8649-ca01496ee037","block_type":"box","text":"The nature of regulation of the utility industries continues to evolve both in the United States and in","page_number":500,"box":{"x":116,"y":289,"width":738,"height":12}},{"id":"3f235abc-a158-423f-93aa-55ff3632f3a6","block_type":"box","text":"foreign countries. In recent years, changes in regulation in the United States increasingly have allowed","page_number":500,"box":{"x":116,"y":304,"width":767,"height":12}},{"id":"b15ab2f3-fddf-4072-bb7a-8097f41d6f1c","block_type":"box","text":"utility companies to provide services and products outside their traditional geographic areas and lines","page_number":500,"box":{"x":117,"y":320,"width":755,"height":12}},{"id":"55850ec1-e1ad-48ae-822a-b2172dbb7fe2","block_type":"box","text":"of business, creating new areas of competition within the industries. In some instances, utility","page_number":500,"box":{"x":116,"y":335,"width":696,"height":12}},{"id":"a4368014-ac0a-4e65-b1d7-6149e3718933","block_type":"box","text":"companies are operating on an unregulated basis. Because of trends toward deregulation and the","page_number":500,"box":{"x":116,"y":351,"width":732,"height":12}},{"id":"c472c26b-db46-4ed5-9b30-22ed77df124b","block_type":"box","text":"evolution of independent power producers as well as new entrants to the field of telecommunications,","page_number":500,"box":{"x":116,"y":366,"width":757,"height":12}},{"id":"dc5eb820-ec84-4f1b-9afa-d3e7513b3048","block_type":"box","text":"non-regulated providers of utility services have become a significant part of their respective industries.","page_number":500,"box":{"x":117,"y":382,"width":761,"height":12}},{"id":"d913f282-0293-47ee-a801-cd8b8f11cca6","block_type":"box","text":"The Manager believes that the emergence of competition and deregulation will result in certain utility","page_number":500,"box":{"x":116,"y":397,"width":750,"height":12}},{"id":"2ccdefbf-931b-42f8-89fd-bce125bd8513","block_type":"box","text":"companies being able to earn more than their traditional regulated rates of return, while others may be","page_number":500,"box":{"x":116,"y":413,"width":764,"height":12}},{"id":"db96e434-1d8d-41f9-bb91-22f337b8e467","block_type":"box","text":"forced to defend their core business from increased competition and may be less profitable. Reduced","page_number":500,"box":{"x":116,"y":428,"width":757,"height":12}},{"id":"2d1ced56-1d5a-434b-bf4b-032b0c86e631","block_type":"box","text":"profitability, as well as new uses of funds (such as for expansion, operations or stock buybacks) could","page_number":500,"box":{"x":117,"y":444,"width":759,"height":12}},{"id":"4e708b09-3d03-429f-8ae8-cffbe1da1d8a","block_type":"box","text":"result in cuts in dividend payout rates. As deregulation allows utility companies to diversify outside of","page_number":500,"box":{"x":117,"y":459,"width":750,"height":12}},{"id":"4a6efd3d-a93d-4e55-b69e-1f08c8ce99c3","block_type":"box","text":"their original geographic regions and their traditional lines of business, utilities companies may engage","page_number":500,"box":{"x":116,"y":475,"width":765,"height":12}},{"id":"a6a82972-967e-4113-a389-b1ff2d75c467","block_type":"box","text":"in riskier ventures. Therefore, deregulation may eliminate restrictions on the maximum level of profits of","page_number":500,"box":{"x":117,"y":490,"width":771,"height":12}},{"id":"a6b1da59-399a-496d-b8d4-743c111eb8ca","block_type":"box","text":"certain utility companies, but may also subject these companies to greater risk of loss. The Manager","page_number":500,"box":{"x":116,"y":506,"width":749,"height":12}},{"id":"70291985-260f-446d-ba36-b16b56598d9c","block_type":"box","text":"seeks to take advantage of favorable investment opportunities that may arise from these structural","page_number":500,"box":{"x":116,"y":521,"width":735,"height":12}},{"id":"003e890a-c0ee-41f4-9560-6666aabd81d7","block_type":"box","text":"changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":500,"box":{"x":116,"y":537,"width":747,"height":12}},{"id":"68aff9de-691e-4aea-ba7f-59dd31848381","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":500,"box":{"x":117,"y":568,"width":755,"height":12}},{"id":"9ae458e0-b133-44a7-96bd-89e29e1fca38","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by","page_number":500,"box":{"x":116,"y":583,"width":761,"height":12}},{"id":"ee6f82a8-e33b-40e4-bf2f-94bc33e81ed9","block_type":"box","text":"their respective governments than utilities in the United States and, as in the United States, generally","page_number":500,"box":{"x":116,"y":599,"width":755,"height":12}},{"id":"f762f1c5-31e3-42f5-b0f6-4cf71cbece2b","block_type":"box","text":"are required to seek government approval for rate increases. In addition, many foreign utilities use","page_number":500,"box":{"x":116,"y":614,"width":733,"height":12}},{"id":"56fe249b-deb8-4330-9a10-6ae305e4ac64","block_type":"box","text":"fuels that may cause more pollution than those used in the United States, which may require such","page_number":500,"box":{"x":116,"y":630,"width":731,"height":12}},{"id":"fe0748c0-b417-47a3-8ff9-86092c2ea3a0","block_type":"box","text":"utilities to invest in pollution control equipment to meet any proposed pollution restrictions. Foreign","page_number":500,"box":{"x":117,"y":645,"width":733,"height":12}},{"id":"2df45f1d-ab73-4e9d-8d12-fc565e4afe04","block_type":"box","text":"regulatory systems vary from country to country and may evolve in ways different from regulation in the","page_number":500,"box":{"x":117,"y":661,"width":765,"height":12}},{"id":"eb40088b-7e48-459a-b6eb-5f6276827d13","block_type":"box","text":"United States.","page_number":500,"box":{"x":117,"y":676,"width":103,"height":10}},{"id":"c798b868-16f7-460f-8708-c83b8f8dd3f7","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":500,"box":{"x":116,"y":707,"width":764,"height":12}},{"id":"15ad92dd-9887-45b6-a457-905b690bc5ee","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate","page_number":500,"box":{"x":116,"y":723,"width":712,"height":12}},{"id":"b9765de6-3bc1-4aad-89ce-dc85d499ca5e","block_type":"box","text":"expansion of capacity in the utility industries in those countries. Although many foreign utility companies","page_number":500,"box":{"x":116,"y":738,"width":762,"height":12}},{"id":"3a3ca1c9-b5d7-404c-8282-53d1177f1396","block_type":"box","text":"currently are government-owned, thereby limiting current investment opportunities for a Fund, the","page_number":500,"box":{"x":116,"y":754,"width":715,"height":12}},{"id":"9cd36bac-5233-47ea-a58d-e970f7961a91","block_type":"box","text":"Manager believes that, in order to attract significant capital for growth, foreign governments are likely to","page_number":500,"box":{"x":117,"y":769,"width":757,"height":12}},{"id":"a47082b7-5c37-4a37-936f-ff9599f33122","block_type":"box","text":"seek global investors through the privatization of their utility industries. Privatization, which refers to the","page_number":500,"box":{"x":116,"y":785,"width":757,"height":12}},{"id":"d1923ee1-354a-4a60-ac5f-1516e5b5fbb5","block_type":"box","text":"trend toward investor ownership of assets rather than government ownership, is expected to occur in","page_number":500,"box":{"x":116,"y":800,"width":739,"height":12}},{"id":"8d698920-11e2-41f0-9dad-25d2308ea107","block_type":"box","text":"newer, faster-growing economies and in mature economies. Of course, there is no assurance that such","page_number":500,"box":{"x":117,"y":816,"width":757,"height":12}},{"id":"5f8fde3f-1f5f-4a35-b622-30d9a0e1e71b","block_type":"box","text":"favorable developments will occur or that investment opportunities in foreign markets will increase.","page_number":500,"box":{"x":116,"y":831,"width":728,"height":12}},{"id":"e0efc28c-09a5-4a11-944d-fdf2cb3de441","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and","page_number":500,"box":{"x":116,"y":862,"width":732,"height":12}},{"id":"d09d8a64-53c2-4e90-8867-120fd5c61df7","block_type":"box","text":"development in the geographic areas in which they do business. The Manager will take into account","page_number":500,"box":{"x":116,"y":878,"width":747,"height":12}},{"id":"9c8f98ac-eff6-44ab-8a22-e9ccfef6ff32","block_type":"box","text":"II-102","page_number":500,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"7af8b3f5-cd6c-4e9a-8c60-5e701130ec6a","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":500,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"31da9fbb-aa1f-4ad9-9b09-cd407602ca76","block_type":"box","text":"anticipated economic growth rates and other economic developments when selecting securities of","page_number":501,"box":{"x":116,"y":87,"width":732,"height":12}},{"id":"fb790a53-d0c3-410e-bf19-3200ab3e78aa","block_type":"box","text":"utility companies.","page_number":501,"box":{"x":117,"y":103,"width":132,"height":12}},{"id":"b027bb46-ee90-4b80-8939-9801186ec98a","block_type":"box","text":"Electric.","page_number":501,"box":{"x":116,"y":134,"width":58,"height":9}},{"id":"0ad543c2-c2ea-4449-ae1c-8636ba3caf04","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the","page_number":501,"box":{"x":176,"y":134,"width":630,"height":12}},{"id":"8e48638d-931d-4acf-a47e-dedcb1d1d900","block_type":"box","text":"generation, transmission and sale of electric energy, although many also provide other energy-related","page_number":501,"box":{"x":116,"y":149,"width":760,"height":12}},{"id":"9db9a59c-03bd-4aa6-b93b-b1b1b95e7d55","block_type":"box","text":"services. In the past, electric utility companies, in general, have been favorably affected by lower fuel","page_number":501,"box":{"x":116,"y":165,"width":754,"height":12}},{"id":"54c8a1a4-89d4-45af-a8e7-534beb9e3080","block_type":"box","text":"and financing costs and the full or near completion of major construction programs. In addition, many","page_number":501,"box":{"x":116,"y":180,"width":754,"height":12}},{"id":"e3a6fe48-4ce9-4707-99a5-854e4fa6334c","block_type":"box","text":"of these companies have generated cash flows in excess of current operating expenses and","page_number":501,"box":{"x":116,"y":196,"width":690,"height":12}},{"id":"cfa9193d-418c-4d81-997a-273d778a6400","block_type":"box","text":"construction expenditures, permitting some degree of diversification into unregulated businesses.","page_number":501,"box":{"x":116,"y":211,"width":727,"height":12}},{"id":"9d42ec0c-e2ed-497b-8642-a9f88e0e1465","block_type":"box","text":"Some electric utilities have also taken advantage of the right to sell power outside of their traditional","page_number":501,"box":{"x":116,"y":227,"width":744,"height":12}},{"id":"ab52b228-3c56-45d5-ad97-8c75f7244da5","block_type":"box","text":"geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":501,"box":{"x":116,"y":242,"width":758,"height":12}},{"id":"ba9c1d54-993e-4495-b5f3-b39570a82918","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital","page_number":501,"box":{"x":117,"y":258,"width":714,"height":12}},{"id":"b6de538c-a6d0-403e-a8a7-17aff6edd777","block_type":"box","text":"construction programs, costs associated with compliance with environmental and safety regulations","page_number":501,"box":{"x":116,"y":273,"width":744,"height":12}},{"id":"acc607df-29de-4218-afa5-d47de6f60fb7","block_type":"box","text":"and changes in the regulatory climate. As interest rates declined, many utilities refinanced high cost","page_number":501,"box":{"x":116,"y":289,"width":744,"height":12}},{"id":"c8092c15-2bda-4d0c-a002-7cfca7457394","block_type":"box","text":"debt and in doing so improved their fixed charges coverage. Regulators, however, lowered allowed","page_number":501,"box":{"x":116,"y":304,"width":740,"height":12}},{"id":"9da30980-6918-406f-8b53-9dd93d4d5c2c","block_type":"box","text":"rates of return as interest rates declined and thereby caused the benefits of the rate declines to be","page_number":501,"box":{"x":117,"y":320,"width":734,"height":12}},{"id":"f3368a2a-9977-48f3-93e3-e1fa0c2d2e8e","block_type":"box","text":"shared wholly or in part with customers. In a period of rising interest rates, the allowed rates of return","page_number":501,"box":{"x":116,"y":335,"width":754,"height":12}},{"id":"85ba72ff-5c2e-41eb-8def-af7895092a74","block_type":"box","text":"may not keep pace with the utilities’ increased costs. The construction and operation of nuclear power","page_number":501,"box":{"x":117,"y":351,"width":760,"height":12}},{"id":"a580d36a-39b1-4788-adb3-7d3c979cd960","block_type":"box","text":"facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear Regulatory","page_number":501,"box":{"x":116,"y":366,"width":686,"height":12}},{"id":"57c17f1b-a05d-4787-97f3-2b4fd4e1b569","block_type":"box","text":"Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in","page_number":501,"box":{"x":117,"y":382,"width":727,"height":12}},{"id":"80fc9a4d-15fa-42a2-a018-2fc2a4add9e1","block_type":"box","text":"higher operating costs and higher capital expenditures, with the risk that the regulators may disallow","page_number":501,"box":{"x":117,"y":397,"width":747,"height":12}},{"id":"a5eeeff3-799c-4eda-84bc-685ff200a2db","block_type":"box","text":"inclusion of these costs in rate authorizations or the risk that a company may not be permitted to","page_number":501,"box":{"x":117,"y":413,"width":719,"height":12}},{"id":"88a75542-8061-4839-a1e3-0290e7f11a70","block_type":"box","text":"operate or complete construction of a facility. In addition, operators of nuclear power plants may be","page_number":501,"box":{"x":116,"y":428,"width":740,"height":12}},{"id":"220d7757-5c34-4d69-9b55-bddbc27fe930","block_type":"box","text":"subject to significant costs for disposal of nuclear fuel and for decommissioning such plants.","page_number":501,"box":{"x":116,"y":444,"width":687,"height":12}},{"id":"edec25fb-bcdd-4485-b039-b58bf9a6b8b7","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected","page_number":501,"box":{"x":116,"y":475,"width":766,"height":12}},{"id":"fb7d52c8-91c0-438b-9f07-72dadfe56150","block_type":"box","text":"to be impacted to a greater extent in the future by the division of their asset base. Electric utility","page_number":501,"box":{"x":116,"y":490,"width":711,"height":12}},{"id":"4dad244b-e488-44f3-95de-c056dafa52d6","block_type":"box","text":"companies that focus more on the generation of electricity may be assigned less favorable ratings as","page_number":501,"box":{"x":116,"y":506,"width":754,"height":12}},{"id":"75529864-0e59-4b32-b6be-2744e276ea7f","block_type":"box","text":"this business is expected to be competitive and the least regulated. On the other hand, companies that","page_number":501,"box":{"x":116,"y":521,"width":768,"height":12}},{"id":"1fe28f9c-5fc3-41dd-8239-b9c8812edc54","block_type":"box","text":"focus on transmission and distribution, which is expected to be the least competitive and the more","page_number":501,"box":{"x":116,"y":537,"width":732,"height":12}},{"id":"e01a7cfe-6551-4e8f-a620-67f543c41347","block_type":"box","text":"regulated part of the business, may see higher ratings given the greater predictability of cash flow.","page_number":501,"box":{"x":117,"y":552,"width":732,"height":12}},{"id":"4b9b2a91-04d3-4c70-a9c0-0d8b7a79b271","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of","page_number":501,"box":{"x":116,"y":583,"width":715,"height":12}},{"id":"a628d606-79a5-45df-9d72-05a35c473547","block_type":"box","text":"competition into the industry as a result of such deregulation has at times resulted in lower revenue,","page_number":501,"box":{"x":116,"y":599,"width":746,"height":12}},{"id":"23e2de9c-1c60-41e8-9a84-98034ce3aa75","block_type":"box","text":"lower credit ratings, increased default risk, and lower electric utility security prices. Such increased","page_number":501,"box":{"x":117,"y":614,"width":734,"height":12}},{"id":"017b360d-7488-41f3-adfd-77c02f441941","block_type":"box","text":"competition may also cause long-term contracts, which electric utilities previously entered into to buy","page_number":501,"box":{"x":116,"y":630,"width":752,"height":12}},{"id":"416ad7ed-505d-4c06-88bc-13c22e67849f","block_type":"box","text":"power, to become “stranded assets” which have no economic value. Any loss associated with such","page_number":501,"box":{"x":117,"y":645,"width":739,"height":12}},{"id":"b4f09d43-44bf-40a7-84bb-815505736ba8","block_type":"box","text":"contracts must be absorbed by ratepayers and investors. In addition, some electric utilities have","page_number":501,"box":{"x":116,"y":661,"width":711,"height":12}},{"id":"d809cc62-10da-4a59-848f-a28cf646a76d","block_type":"box","text":"acquired electric utilities overseas to diversify, enhance earnings and gain experience in operating in a","page_number":501,"box":{"x":116,"y":676,"width":759,"height":12}},{"id":"f06c1ef5-4c5d-4c4e-8fd5-a19e2d42b402","block_type":"box","text":"deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":501,"box":{"x":116,"y":692,"width":746,"height":12}},{"id":"d01c4edc-387f-4daf-af5e-a95d7dfd7a43","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation","page_number":501,"box":{"x":116,"y":707,"width":737,"height":12}},{"id":"c7fe0095-11ee-4947-ad86-edc427799ede","block_type":"box","text":"proposals will be adopted. However, deregulation in any form could significantly impact the electric","page_number":501,"box":{"x":117,"y":723,"width":731,"height":12}},{"id":"70672abd-44b5-4076-bb04-1f74cd477d1e","block_type":"box","text":"utilities industry.","page_number":501,"box":{"x":117,"y":738,"width":117,"height":12}},{"id":"c678156e-005b-40f9-94d9-82de85247945","block_type":"box","text":"Telecommunications.","page_number":501,"box":{"x":118,"y":769,"width":155,"height":10}},{"id":"fdb7af84-1531-4313-9e98-814c3e4a9853","block_type":"box","text":"The telecommunications industry today includes both traditional telephone","page_number":501,"box":{"x":280,"y":769,"width":551,"height":12}},{"id":"3ca06240-ec32-4833-add0-b235adf6d5c9","block_type":"box","text":"companies, with a history of broad market coverage and highly regulated businesses, and cable","page_number":501,"box":{"x":116,"y":785,"width":712,"height":12}},{"id":"7536829f-319d-4d44-b201-3ace8b835410","block_type":"box","text":"companies, which began as small, lightly regulated businesses focused on limited markets. Today","page_number":501,"box":{"x":116,"y":800,"width":728,"height":12}},{"id":"c75d59df-1f96-410c-a090-60bdb306bf7d","block_type":"box","text":"these two historically different businesses are converging in an industry that is trending toward larger,","page_number":501,"box":{"x":116,"y":816,"width":751,"height":12}},{"id":"dcaede76-b7f3-42f9-8c82-82f0225d98ad","block_type":"box","text":"competitive national and international markets with an emphasis on deregulation. Companies that","page_number":501,"box":{"x":116,"y":831,"width":729,"height":12}},{"id":"f3413f42-3b0c-4c72-8b19-33b42c62f817","block_type":"box","text":"distribute telephone services and provide access to the telephone networks still comprise the greatest","page_number":501,"box":{"x":116,"y":847,"width":760,"height":12}},{"id":"275599c8-e047-4d75-8d8a-7bc556803833","block_type":"box","text":"portion of this segment, but non-regulated activities such as wireless telephone services, paging, data","page_number":501,"box":{"x":117,"y":862,"width":759,"height":12}},{"id":"860119de-549b-420b-8c52-16b03e6a7e0d","block_type":"box","text":"transmission and processing, equipment retailing, computer software and hardware and internet","page_number":501,"box":{"x":116,"y":878,"width":718,"height":12}},{"id":"e2fae702-bb8d-474b-8246-1cdd77888498","block_type":"box","text":"II-103","page_number":501,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"8ed851fd-9343-41bf-a329-12bf7cd9f765","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":501,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2047ca70-cd4c-4ceb-888d-e7ed1c1d72bc","block_type":"box","text":"services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":502,"box":{"x":116,"y":87,"width":759,"height":12}},{"id":"ab2d67cb-1068-4941-a732-1e56ac2bcd05","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies.","page_number":502,"box":{"x":116,"y":102,"width":752,"height":13}},{"id":"d2be6388-90ec-46ac-aef1-e0a096539829","block_type":"box","text":"The presence of unregulated companies in this industry and the entry of traditional telephone","page_number":502,"box":{"x":116,"y":118,"width":696,"height":12}},{"id":"1e16f2fa-56a7-44fa-ad21-415f7ad00901","block_type":"box","text":"companies into unregulated or less regulated businesses provide significant investment opportunities","page_number":502,"box":{"x":116,"y":134,"width":755,"height":12}},{"id":"08e45b79-a977-426d-9e4a-63dc7b3a36e3","block_type":"box","text":"with companies that may increase their earnings at faster rates than had been allowed in traditional","page_number":502,"box":{"x":116,"y":149,"width":742,"height":12}},{"id":"61e24ba5-1fef-497c-9a7b-899ade34710b","block_type":"box","text":"regulated businesses. Still, increasing competition, technological innovations and other structural","page_number":502,"box":{"x":117,"y":165,"width":722,"height":12}},{"id":"c6d73ff2-1f7c-48c4-a332-5ca56d6382bd","block_type":"box","text":"changes could adversely affect the profitability of such utilities and the growth rate of their dividends.","page_number":502,"box":{"x":116,"y":180,"width":750,"height":12}},{"id":"7e03b933-bf2e-44c7-9520-f2b5e01ffd17","block_type":"box","text":"Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":502,"box":{"x":117,"y":196,"width":725,"height":12}},{"id":"14c37dc2-9481-4685-bd42-0c63c20a4836","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility","page_number":502,"box":{"x":116,"y":211,"width":718,"height":12}},{"id":"fb069268-706e-47d1-8aeb-fe644f557819","block_type":"box","text":"services to both residential, corporate and governmental customers.","page_number":502,"box":{"x":116,"y":227,"width":511,"height":12}},{"id":"37962168-be3e-4c8e-93e4-e330a9e741d3","block_type":"box","text":"Gas.","page_number":502,"box":{"x":117,"y":255,"width":32,"height":9}},{"id":"f0606b3c-2970-4dd3-8594-467365c4683d","block_type":"box","text":"Gas transmission companies and gas distribution","page_number":502,"box":{"x":150,"y":255,"width":360,"height":12}},{"id":"2faec012-5d72-4f52-91b8-a89c0dacbed8","block_type":"box","text":"companies are undergoing significant changes. In","page_number":502,"box":{"x":510,"y":255,"width":359,"height":12}},{"id":"d67d1493-cbd9-43be-ba81-d22b35c2c3b4","block_type":"box","text":"the United States, interstate transmission companies","page_number":502,"box":{"x":116,"y":270,"width":375,"height":12}},{"id":"5af2d6b7-c518-47ae-9a0d-f112eef43f43","block_type":"box","text":"are regulated by the Federal Energy Regulatory","page_number":502,"box":{"x":491,"y":271,"width":349,"height":11}},{"id":"4baa25f0-62d3-4939-aaae-9cad52f9cab0","block_type":"box","text":"Commission, which is reducing its regulation of the i","page_number":502,"box":{"x":117,"y":286,"width":366,"height":12}},{"id":"d21192fb-26c1-4471-9ccb-162e09d18885","block_type":"box","text":"ndustry. Many companies have diversified into oil and","page_number":502,"box":{"x":485,"y":286,"width":385,"height":12}},{"id":"91158185-ab82-45e2-94b4-5a894c9a8156","block_type":"box","text":"gas exploration and development, making returns more sensitive to energy prices. In the recent decade,","page_number":502,"box":{"x":116,"y":302,"width":744,"height":12}},{"id":"86360bc0-c937-49b1-b8ac-f5e646631f57","block_type":"box","text":"gas utility companies have been adversely affected by","page_number":502,"box":{"x":116,"y":317,"width":390,"height":12}},{"id":"31b62611-ad10-4867-b670-971e7db5f532","block_type":"box","text":"disruptions in the oil industry and have also been","page_number":502,"box":{"x":506,"y":317,"width":351,"height":12}},{"id":"c881c1b7-865a-4694-80cf-a9cfe3f043e9","block_type":"box","text":"affected by increased concentration and competit","page_number":502,"box":{"x":116,"y":332,"width":350,"height":13}},{"id":"df80148d-f226-4b37-a1f2-3195af13ad21","block_type":"box","text":"ion. In the opinion of the Manager, however,","page_number":502,"box":{"x":467,"y":332,"width":318,"height":13}},{"id":"f36a027e-4219-4943-bc74-bfed41230afd","block_type":"box","text":"environmental considerations could im","page_number":502,"box":{"x":116,"y":348,"width":273,"height":9}},{"id":"f19b8e45-fd84-4db2-b964-dd79d4bbb963","block_type":"box","text":"prove the gas industry outlook in the future. For example, natural gas","page_number":502,"box":{"x":390,"y":348,"width":495,"height":12}},{"id":"dcc7d6f1-1c57-49b2-a1a4-cdb154d9f251","block_type":"box","text":"is the cleanest of the hydrocarbon fuels, and this may result","page_number":502,"box":{"x":117,"y":363,"width":422,"height":13}},{"id":"dfc14050-13b9-4381-918f-5a1ebd95b103","block_type":"box","text":"t in incremental shifts in fuel consumption toward","page_number":502,"box":{"x":539,"y":363,"width":347,"height":12}},{"id":"316e8680-0466-42ba-a899-543fa273bd5e","block_type":"box","text":"natural gas and away from oil and coal, even for electri","page_number":502,"box":{"x":117,"y":379,"width":387,"height":12}},{"id":"91492e10-3c8f-4f1c-bb33-a085394e5e2d","block_type":"box","text":"city generation. However, technological or regulatory","page_number":502,"box":{"x":505,"y":379,"width":379,"height":12}},{"id":"c04d0d53-5654-438d-abd8-5d4b21d42924","block_type":"box","text":"changes within the industry may delay or prevent this result.","page_number":502,"box":{"x":116,"y":395,"width":430,"height":12}},{"id":"4f6ea332-edc5-4b6a-9f3c-c188fd56d9e0","block_type":"box","text":"Water.","page_number":502,"box":{"x":118,"y":423,"width":46,"height":9}},{"id":"03e3b1d7-b13c-4a29-88cf-df678be681be","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United","page_number":502,"box":{"x":165,"y":423,"width":706,"height":12}},{"id":"4bf4d5bc-7468-4316-a798-60b4bbeb903b","block_type":"box","text":"States and around the world the industry is highly fragmented because most of the supplies are owned","page_number":502,"box":{"x":116,"y":438,"width":768,"height":12}},{"id":"e149fb7b-c302-4a6a-a9ef-69d18ef8261c","block_type":"box","text":"by local authorities. Companies in this industry are generally mature and are experiencing little or no","page_number":502,"box":{"x":117,"y":454,"width":748,"height":12}},{"id":"c7898c77-1992-4d54-87cb-f5cc016855cd","block_type":"box","text":"per capita volume growth. In the opinion of the Manager, there may be opportunities for certain","page_number":502,"box":{"x":117,"y":469,"width":708,"height":12}},{"id":"2772b15a-c743-419f-9df7-af1486f4de60","block_type":"box","text":"companies to acquire other water utility companies and for foreign acquisition of domestic companies.","page_number":502,"box":{"x":116,"y":485,"width":761,"height":12}},{"id":"1a579b71-d842-4917-82f1-28bb14da575a","block_type":"box","text":"The Manager believes that favorable investment opportunities may result from consolidation of this","page_number":502,"box":{"x":116,"y":500,"width":738,"height":12}},{"id":"133fc4fb-a86b-486b-90ec-9c094714515d","block_type":"box","text":"segment. As with other utilities, however, increased regulation, increased costs and potential","page_number":502,"box":{"x":116,"y":516,"width":693,"height":12}},{"id":"de510202-ce8e-48a3-b39b-a43a5a497b71","block_type":"box","text":"disruptions in supply may adversely affect investments in water supply utilities.","page_number":502,"box":{"x":116,"y":531,"width":588,"height":12}},{"id":"76809359-aeac-46fd-9dd8-28f108c3c7f1","block_type":"box","text":"Utility Industries Generally.","page_number":502,"box":{"x":117,"y":560,"width":197,"height":12}},{"id":"cc2f20ce-cfc2-4c4e-9c0c-febb93610aec","block_type":"box","text":"There can be no assurance that the positive developments noted above,","page_number":502,"box":{"x":316,"y":560,"width":548,"height":12}},{"id":"fc92de30-511c-4dfc-8f0d-c6bd90ccb9e1","block_type":"box","text":"including those relating to privatization and changing regulation, will occur or that risk factors other than","page_number":502,"box":{"x":117,"y":575,"width":771,"height":12}},{"id":"75b165ec-459f-4551-9631-688bb5eafe64","block_type":"box","text":"those noted above will not develop in the future.","page_number":502,"box":{"x":116,"y":591,"width":361,"height":12}},{"id":"05612e37-87ff-4baa-a4fc-6d79d33719cd","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":502,"box":{"x":118,"y":619,"width":643,"height":12}},{"id":"023ee2b4-c217-4ad0-8f55-dac3195bf521","block_type":"box","text":"A Fund may","page_number":502,"box":{"x":762,"y":619,"width":100,"height":12}},{"id":"b866ee60-2bb3-407f-a056-f8fc36466898","block_type":"box","text":"purchase or sell securities that it is entitled to receive on a when-issued basis. A Fund may also","page_number":502,"box":{"x":117,"y":635,"width":713,"height":12}},{"id":"5d0cce0f-23e8-430e-8f2c-d052b0d21327","block_type":"box","text":"purchase or sell securities on a delayed delivery basis or through a forward commitment (including on","page_number":502,"box":{"x":117,"y":650,"width":758,"height":12}},{"id":"e8013f1b-236d-42bc-8cff-6083aaf4aa27","block_type":"box","text":"a TBA (to be announced) basis). These transactions involve the purchase or sale of securities by a","page_number":502,"box":{"x":116,"y":666,"width":734,"height":12}},{"id":"387e6118-d82c-41d7-ae9e-6e45b5a2b41a","block_type":"box","text":"Fund at an established price with payment and delivery taking place in the future. The Fund enters into","page_number":502,"box":{"x":117,"y":681,"width":762,"height":12}},{"id":"94f0a3fc-0d0a-460f-9297-4b86ff4f23f5","block_type":"box","text":"these transactions to obtain what is considered an advantageous price to the Fund at the time of","page_number":502,"box":{"x":116,"y":697,"width":717,"height":12}},{"id":"68042a40-e717-4621-af2d-663492b5ba2e","block_type":"box","text":"entering into the transaction.","page_number":502,"box":{"x":116,"y":712,"width":211,"height":12}},{"id":"b02e01fe-93b8-4a56-984f-26c89ea31464","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the","page_number":502,"box":{"x":117,"y":740,"width":725,"height":13}},{"id":"e138e7dc-11fe-4c05-9a21-df788cdb3cde","block_type":"box","text":"Federal Reserve Bank of New York, a Fund or its counterparty generally will be required to post","page_number":502,"box":{"x":117,"y":756,"width":710,"height":12}},{"id":"ecba415b-b61d-4fae-8190-df406afef995","block_type":"box","text":"collateral when entering into certain forward-settling transactions, including without limitation TBA","page_number":502,"box":{"x":116,"y":771,"width":722,"height":13}},{"id":"e2f32a73-5806-48e8-92e0-067ebe9b997d","block_type":"box","text":"transactions. FINRA rules have also been implemented that include mandatory margin requirements","page_number":502,"box":{"x":116,"y":787,"width":745,"height":12}},{"id":"9ebb5dcf-8099-441a-9517-c8b83c3fe471","block_type":"box","text":"for the TBA market with limited exceptions. The collateralization of TBA trades is intended to mitigate","page_number":502,"box":{"x":116,"y":802,"width":749,"height":13}},{"id":"4b1584c1-28ac-47c0-9a19-02422513c932","block_type":"box","text":"counterparty credit risk between trade and settlement, but could increase the cost of TBA transactions","page_number":502,"box":{"x":116,"y":818,"width":757,"height":12}},{"id":"e98acf8f-77d9-4faa-95a2-b2fc9d67dc05","block_type":"box","text":"and impose added operational complexity.","page_number":502,"box":{"x":116,"y":834,"width":320,"height":12}},{"id":"37ea6903-a343-4ec0-a970-0afbdd799d5d","block_type":"box","text":"There can be no assurance that a security purchased on a when-issued basis will be issued or that a","page_number":502,"box":{"x":116,"y":862,"width":754,"height":12}},{"id":"f26f76f5-79a6-4395-ac2d-1f4954ef1b5e","block_type":"box","text":"security purchased or sold on a delayed delivery basis or through a forward commitment will be","page_number":502,"box":{"x":116,"y":877,"width":713,"height":12}},{"id":"fe0c1658-430b-4359-a42c-9a1e875ed651","block_type":"box","text":"II-104","page_number":502,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"4ccb1f28-8ec9-46b4-b61a-b1d5fb701163","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":502,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f8fc122f-f8a9-48d5-9bd6-18aa9f7f99a5","block_type":"box","text":"delivered. Also, the value of securities in these transactions on the delivery date may be more or less","page_number":503,"box":{"x":116,"y":87,"width":755,"height":12}},{"id":"b5e779c4-0e29-4cad-a0b7-34df446d90f9","block_type":"box","text":"than the price paid by the Fund to purchase the securities. The Fund will lose money if the value of the","page_number":503,"box":{"x":116,"y":102,"width":766,"height":13}},{"id":"4fdf0b64-f05c-47eb-a4e0-e0097ab50cba","block_type":"box","text":"security in such a transaction declines below the purchase price and will not benefit if the value of the","page_number":503,"box":{"x":116,"y":118,"width":757,"height":12}},{"id":"0970783d-c368-4c22-8421-63f9c2e98a8e","block_type":"box","text":"security appreciates above the sale price during the commitment period.","page_number":503,"box":{"x":116,"y":134,"width":542,"height":12}},{"id":"0d470d82-a0cd-47ff-aba5-e5288534da19","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a","page_number":503,"box":{"x":117,"y":165,"width":715,"height":12}},{"id":"25003de0-c193-419f-b2cc-01621a6f32fe","block_type":"box","text":"commitment after it has been entered into, and may sell securities it has committed to purchase before","page_number":503,"box":{"x":116,"y":180,"width":767,"height":12}},{"id":"91dd1a17-f09a-4f2d-8491-afb1eccfcf0a","block_type":"box","text":"those securities are delivered to the Fund on the settlement date. In these cases the Fund may realize","page_number":503,"box":{"x":116,"y":196,"width":764,"height":12}},{"id":"d853e9c2-664f-4cc2-a39a-39af7fcf7b5f","block_type":"box","text":"a taxable capital gain or loss.","page_number":503,"box":{"x":116,"y":211,"width":221,"height":12}},{"id":"5a41efb2-8f04-4782-87bd-8853f1861d52","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other","page_number":503,"box":{"x":116,"y":242,"width":763,"height":12}},{"id":"c2f7db73-ed18-4919-9584-8c6edb082ef2","block_type":"box","text":"party to consummate the trade. Failure of such party to do so may result in the Fund’s incurring a loss","page_number":503,"box":{"x":117,"y":258,"width":760,"height":12}},{"id":"c7415608-9f03-4c08-94ff-7899883f9e3f","block_type":"box","text":"or missing an opportunity to obtain a price considered to be advantageous.","page_number":503,"box":{"x":116,"y":273,"width":561,"height":12}},{"id":"b47acf70-494b-4ff6-b831-f3db95b19f3d","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any","page_number":503,"box":{"x":116,"y":304,"width":688,"height":12}},{"id":"377a1c5e-2e82-4397-ae0b-dd1db498c21d","block_type":"box","text":"subsequent fluctuations in their market value, is taken into account when determining the market value","page_number":503,"box":{"x":116,"y":320,"width":767,"height":12}},{"id":"e0be55ba-e9c9-478e-99f3-a888515b1a2d","block_type":"box","text":"of a Fund starting on the day the Fund agrees to purchase the securities. The Fund does not earn","page_number":503,"box":{"x":116,"y":335,"width":732,"height":12}},{"id":"6524476e-ac84-4169-8269-0d41a1c7180d","block_type":"box","text":"interest on the securities it has committed to purchase until they are paid for and delivered on the","page_number":503,"box":{"x":117,"y":351,"width":725,"height":12}},{"id":"75335fd5-67f6-4136-aa83-891370c62da5","block_type":"box","text":"settlement date.","page_number":503,"box":{"x":116,"y":366,"width":124,"height":10}},{"id":"d089ee4d-24db-401b-ad6d-abd85d41d65e","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward","page_number":503,"box":{"x":117,"y":397,"width":740,"height":12}},{"id":"cf44690e-3e3c-462b-8a40-9e758bad7d43","block_type":"box","text":"settling securities (e.g., firm and standby commitments, including TBA commitments, and dollar rolls)","page_number":503,"box":{"x":116,"y":413,"width":753,"height":12}},{"id":"83fd419a-4dc6-4213-9495-ba0ae9fe1f46","block_type":"box","text":"and non-standard settlement cycle securities notwithstanding the limitation on the issuance of senior","page_number":503,"box":{"x":116,"y":428,"width":750,"height":12}},{"id":"e5657a0b-868f-4da6-9d57-aa58b534232e","block_type":"box","text":"securities in Section 18 of the Investment Company Act, provided that the Fund intends to physically","page_number":503,"box":{"x":116,"y":444,"width":750,"height":12}},{"id":"81a4cfb6-37c8-43fb-9d7a-b78de30aeda3","block_type":"box","text":"settle the transaction and the transaction will settle within 35 days of its trade date (the “Delayed","page_number":503,"box":{"x":116,"y":459,"width":719,"height":12}},{"id":"8800f418-9d80-4a27-be98-db8894d15f6e","block_type":"box","text":"Settlement Securities Provision”). If a when-issued, forward-settling or non-standard settlement cycle","page_number":503,"box":{"x":116,"y":475,"width":754,"height":12}},{"id":"428f4497-0d04-4e56-a010-3851b0aed457","block_type":"box","text":"security does not satisfy the Delayed-Settlement Securities Provision, then it is treated as a Derivatives","page_number":503,"box":{"x":116,"y":490,"width":771,"height":12}},{"id":"771d8916-7b2e-4eef-b104-a78d3520b8fa","block_type":"box","text":"Transaction under Rule 18f-4. See “— Derivatives — Regulation of Derivatives — Rule 18f-4 under the","page_number":503,"box":{"x":116,"y":506,"width":770,"height":12}},{"id":"f0e47b26-0b0a-4eb9-9592-e0241476647d","block_type":"box","text":"Investment Company Act” above.","page_number":503,"box":{"x":117,"y":521,"width":252,"height":12}},{"id":"e8ae1759-aaf3-4b62-b017-441042536f84","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and","page_number":503,"box":{"x":117,"y":552,"width":761,"height":12}},{"id":"daeb277d-e487-45b0-8aa5-49e2ac87b20e","block_type":"box","text":"certain of their affiliates to include in certain financial contracts, including many agreements with","page_number":503,"box":{"x":116,"y":568,"width":716,"height":12}},{"id":"04ca31ed-3bab-4494-bc0a-3d83e82b0ba7","block_type":"box","text":"respect to when-issued, TBA and forward commitment transactions, terms that delay or restrict the","page_number":503,"box":{"x":117,"y":583,"width":736,"height":12}},{"id":"35b80025-dbb5-4773-b55c-82ea6e641bbe","block_type":"box","text":"rights of counterparties, such as a Fund, to terminate such agreements, foreclose upon collateral,","page_number":503,"box":{"x":117,"y":599,"width":728,"height":12}},{"id":"30cb8513-c120-4188-b31f-b65eae80cdd0","block_type":"box","text":"exercise other default rights or restrict transfers of credit support in the event that the counterparty and/","page_number":503,"box":{"x":116,"y":614,"width":766,"height":12}},{"id":"c4a25923-9c75-4717-b8e2-2d1a805365bb","block_type":"box","text":"or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that","page_number":503,"box":{"x":116,"y":630,"width":744,"height":12}},{"id":"3f244246-0b7d-4db1-8e04-fdc381090056","block_type":"box","text":"these requirements, as well as potential additional government regulation and other developments in","page_number":503,"box":{"x":116,"y":645,"width":752,"height":12}},{"id":"57bae5d7-7f12-4c23-bc49-b34b34360225","block_type":"box","text":"the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":503,"box":{"x":116,"y":661,"width":730,"height":12}},{"id":"a0aff3d1-1d00-4f6f-8dfc-53b17ceb15e0","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":503,"box":{"x":116,"y":676,"width":593,"height":12}},{"id":"d9513faf-a73d-4536-9567-97a17c296352","block_type":"box","text":"Yields and Ratings.","page_number":503,"box":{"x":118,"y":707,"width":152,"height":12}},{"id":"0b5e22a3-7610-43f5-8a8a-261ff4f2ad44","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including","page_number":503,"box":{"x":276,"y":707,"width":594,"height":12}},{"id":"adb2019c-ed28-404f-bb38-d8b90f4736a4","block_type":"box","text":"general market conditions, conditions in the particular market for the obligation, the financial condition","page_number":503,"box":{"x":116,"y":723,"width":753,"height":12}},{"id":"35c8d95f-09ce-41e1-ad98-0a5637b19a95","block_type":"box","text":"of the issuer, the size of the offering, the maturity of the obligation and the ratings of the issue. The","page_number":503,"box":{"x":116,"y":738,"width":732,"height":12}},{"id":"0fb871e4-466e-410f-bd34-1df64882978a","block_type":"box","text":"ratings of Moody’s, Fitch and S&P represent their respective opinions as to the quality of the","page_number":503,"box":{"x":117,"y":754,"width":683,"height":12}},{"id":"a9351da5-bb66-4733-9a2d-86fa3d7517db","block_type":"box","text":"obligations they undertake to rate. Ratings, however, are general and are not absolute standards of","page_number":503,"box":{"x":116,"y":769,"width":739,"height":12}},{"id":"cba8e157-70e6-4552-a257-05a0e0a39af4","block_type":"box","text":"quality. Consequently, obligations with the same rating, maturity and interest rate may have different","page_number":503,"box":{"x":116,"y":785,"width":744,"height":12}},{"id":"6edae270-6460-41e5-9fd6-3e95131ac3bc","block_type":"box","text":"market prices. Subsequent to its purchase by a Fund, a rated security may cease to be rated. A Fund’s","page_number":503,"box":{"x":117,"y":800,"width":764,"height":12}},{"id":"674e7453-170f-442d-9a72-e90917fff1dd","block_type":"box","text":"Manager or sub-adviser will consider such an event in determining whether the Fund should continue","page_number":503,"box":{"x":117,"y":816,"width":750,"height":12}},{"id":"057f4935-bffe-46cc-9fda-3f53e48d1284","block_type":"box","text":"to hold the security.","page_number":503,"box":{"x":116,"y":831,"width":150,"height":12}},{"id":"6f5722b9-dd36-432d-8c49-189d255217c8","block_type":"box","text":"Zero Coupon Securities.","page_number":503,"box":{"x":116,"y":862,"width":193,"height":12}},{"id":"0245b56f-bc78-41d2-9d4a-a83d30544f03","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value","page_number":503,"box":{"x":310,"y":862,"width":575,"height":12}},{"id":"6d856598-0d86-4324-a20c-2bb2b35f0521","block_type":"box","text":"and do not pay interest during the life of the security. The discount approximates the total amount of","page_number":503,"box":{"x":116,"y":878,"width":747,"height":12}},{"id":"38a28775-75c1-438d-8395-5dfdbae03c19","block_type":"box","text":"II-105","page_number":503,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"857cbed5-630d-4aaf-b600-8d014dd5e28b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":503,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f944d245-4961-451c-bc6d-5a67859f85c2","block_type":"box","text":"interest the security will accrue and compound over the period until maturity at a rate of interest","page_number":504,"box":{"x":117,"y":87,"width":711,"height":12}},{"id":"c79e6e9c-d534-46fd-8039-f2685c86b4a6","block_type":"box","text":"reflecting the market rate of the security at the time of issuance. Upon maturity, the holder of a zero","page_number":504,"box":{"x":117,"y":102,"width":741,"height":13}},{"id":"a39ac6ab-e6ba-4dd0-a44c-9d981da4ccb5","block_type":"box","text":"coupon security is entitled to receive the par value of the security.","page_number":504,"box":{"x":116,"y":118,"width":492,"height":12}},{"id":"d6ce5966-5aab-45e3-9e3c-da24f617d03c","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to","page_number":504,"box":{"x":116,"y":149,"width":740,"height":12}},{"id":"1af4f558-a75e-4f28-9af0-f9d02339b982","block_type":"box","text":"have received income (“phantom income”) annually, notwithstanding that cash may not be received","page_number":504,"box":{"x":117,"y":165,"width":742,"height":12}},{"id":"8303b31e-2aca-46c2-9ed9-02e61077d933","block_type":"box","text":"currently. The effect of owning instruments that do not make current interest payments is that a fixed","page_number":504,"box":{"x":116,"y":180,"width":751,"height":12}},{"id":"5d2b3cb2-8736-45fb-9871-aac3f2ec8276","block_type":"box","text":"yield is earned not only on the original investment but also, in effect, on all discount accretion during","page_number":504,"box":{"x":116,"y":196,"width":746,"height":12}},{"id":"f7b459ea-d341-41e7-ad1c-e1c993ffe112","block_type":"box","text":"the life of the obligations. This implicit reinvestment of earnings at a fixed rate eliminates the risk of","page_number":504,"box":{"x":116,"y":211,"width":737,"height":12}},{"id":"d28c5de6-7ad7-45c1-bd08-7cbf95f97a3a","block_type":"box","text":"being unable to invest distributions at a rate as high as the implicit yield on the zero coupon bond, but","page_number":504,"box":{"x":117,"y":227,"width":757,"height":12}},{"id":"6b17b1e5-f0ba-4e54-bfba-46bf2bfc0268","block_type":"box","text":"at the same time eliminates the holder’s ability to reinvest at higher rates in the future. For this reason,","page_number":504,"box":{"x":116,"y":242,"width":764,"height":12}},{"id":"cdaac1f6-bca0-4345-9a39-8c1a1580820f","block_type":"box","text":"some of these securities may be subject to substantially greater price fluctuations during periods of","page_number":504,"box":{"x":116,"y":258,"width":739,"height":12}},{"id":"166bae5f-f339-4960-ba20-08780744ce30","block_type":"box","text":"changing market interest rates than are comparable securities that pay interest currently. Longer term","page_number":504,"box":{"x":116,"y":273,"width":760,"height":12}},{"id":"72162ec3-575b-4192-9550-ffa4dc2cb249","block_type":"box","text":"zero coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These","page_number":504,"box":{"x":116,"y":289,"width":768,"height":12}},{"id":"2a7ba8b0-9009-46f2-99e6-e5717ddb210c","block_type":"box","text":"investments benefit the issuer by mitigating its need for cash to meet debt service, but also require a","page_number":504,"box":{"x":117,"y":304,"width":749,"height":12}},{"id":"c83d788c-6e74-4af2-be84-e251a7ece1cf","block_type":"box","text":"higher rate of return to attract investors who are willing to defer receipt of cash.","page_number":504,"box":{"x":117,"y":320,"width":589,"height":12}},{"id":"81d8aa60-7cd9-4bf6-95ac-012f2f8bff00","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting","page_number":504,"box":{"x":116,"y":351,"width":739,"height":12}},{"id":"77fed2c7-60c5-4faf-88e4-93013bfa6686","block_type":"box","text":"purposes prior to the receipt of cash payments. Zero coupon securities may be subject to greater","page_number":504,"box":{"x":117,"y":366,"width":724,"height":12}},{"id":"bb323c57-eb2a-49f3-b8e9-a335978e36b2","block_type":"box","text":"fluctuation in value and less liquidity in the event of adverse market conditions than comparably rated","page_number":504,"box":{"x":116,"y":382,"width":756,"height":12}},{"id":"6e50594f-65e0-418e-9af9-d0fe7cfde23a","block_type":"box","text":"securities that pay cash interest at regular intervals.","page_number":504,"box":{"x":116,"y":397,"width":388,"height":12}},{"id":"fe06c7c3-4291-4e9a-9051-b8ca83cc38c5","block_type":"box","text":"Further, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund","page_number":504,"box":{"x":117,"y":428,"width":764,"height":12}},{"id":"d7762bfa-14c9-4336-aaf3-c92e06df3b6d","block_type":"box","text":"is required to distribute income to its shareholders and, consequently, may have to dispose of other,","page_number":504,"box":{"x":117,"y":444,"width":746,"height":12}},{"id":"54b58593-061c-4b71-9ceb-9e61df576978","block_type":"box","text":"more liquid portfolio securities under disadvantageous circumstances or may have to leverage itself by","page_number":504,"box":{"x":117,"y":459,"width":765,"height":12}},{"id":"ed69a2ba-a456-4329-8c60-22895a3d7e5a","block_type":"box","text":"borrowing in order to generate the cash to satisfy these distributions. The required distributions may","page_number":504,"box":{"x":117,"y":475,"width":744,"height":12}},{"id":"2f4fbe1d-c408-4445-9966-6abebc264647","block_type":"box","text":"result in an increase in a Fund’s exposure to zero coupon securities.","page_number":504,"box":{"x":117,"y":490,"width":511,"height":12}},{"id":"767ae366-be7b-4915-9c7e-f8c767925968","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero","page_number":504,"box":{"x":117,"y":521,"width":712,"height":12}},{"id":"f128b91e-0501-4b6f-a0f8-a2eb5f2231db","block_type":"box","text":"coupon securities. During a period of severe market conditions, the market for such securities may","page_number":504,"box":{"x":116,"y":537,"width":736,"height":12}},{"id":"87a721bb-471e-4376-bc89-4fa44ec75b56","block_type":"box","text":"become even less liquid. In addition, as these securities do not pay cash interest, a Fund’s investment","page_number":504,"box":{"x":117,"y":552,"width":762,"height":12}},{"id":"9a666a93-412b-49f6-8598-b6e573cde562","block_type":"box","text":"exposure to these securities and their risks, including credit risk, will increase during the time these","page_number":504,"box":{"x":116,"y":568,"width":739,"height":12}},{"id":"94e28973-57f0-484f-8d93-716250133fb6","block_type":"box","text":"securities are held in the Fund’s portfolio.","page_number":504,"box":{"x":116,"y":583,"width":311,"height":12}},{"id":"90142ffb-6fc1-4824-80d7-5063d389f745","block_type":"box","text":"Suitability. (All Funds)","page_number":504,"box":{"x":117,"y":614,"width":181,"height":12}},{"id":"488ea7d6-afcd-4bcb-b226-c3e5f82e11ac","block_type":"box","text":"The economic benefit of an investment in any Fund depends upon many factors beyond the control of","page_number":504,"box":{"x":116,"y":637,"width":760,"height":12}},{"id":"55d08c7b-2ae0-4145-ad79-2786e7030a3a","block_type":"box","text":"the Fund, the Manager and its affiliates. Each Fund should be considered a vehicle for diversification","page_number":504,"box":{"x":116,"y":653,"width":753,"height":12}},{"id":"09fb6f6e-374e-458c-819d-5b23ca24952a","block_type":"box","text":"and not as a balanced investment program. The suitability for any particular investor of a purchase of","page_number":504,"box":{"x":116,"y":668,"width":751,"height":12}},{"id":"e561cef1-ab10-46de-9a8d-89b5a4af1e7d","block_type":"box","text":"shares in a Fund will depend upon, among other things, such investor’s investment objectives and","page_number":504,"box":{"x":116,"y":684,"width":727,"height":12}},{"id":"62cb9c16-cd62-483f-a742-4724b70937a6","block_type":"box","text":"such investor’s ability to accept the risks associated with investing in securities, including the risk of","page_number":504,"box":{"x":116,"y":699,"width":737,"height":13}},{"id":"3b083810-b97a-4dde-9451-c0bf83333a16","block_type":"box","text":"loss of principal.","page_number":504,"box":{"x":117,"y":715,"width":118,"height":12}},{"id":"08adf83c-887a-4512-bf9f-6ad73295a4be","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":504,"box":{"x":116,"y":746,"width":287,"height":12}},{"id":"8e00a0e1-16f8-4bb1-ba1f-36dc7fd14a00","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the","page_number":504,"box":{"x":116,"y":769,"width":707,"height":12}},{"id":"7df9c63e-de52-4909-8454-99181a6c6cb4","block_type":"box","text":"specific fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to","page_number":504,"box":{"x":116,"y":785,"width":766,"height":12}},{"id":"0661afb2-b54f-43b7-bc66-93488f64d02e","block_type":"box","text":"those investment restrictions, each Fund is also subject to the restrictions discussed below.","page_number":504,"box":{"x":116,"y":800,"width":677,"height":12}},{"id":"b94e12ca-8cb1-4833-8a92-cddd8e78fefb","block_type":"box","text":"Each Fund’s investments will be limited in order to","page_number":504,"box":{"x":117,"y":831,"width":376,"height":10}},{"id":"226adeac-77e2-4a42-9ea5-844aa7abf4d8","block_type":"box","text":"allow the Fund to qualify as a “regulated investment","page_number":504,"box":{"x":494,"y":831,"width":389,"height":12}},{"id":"af6af311-c1bd-4560-bfcc-e4adce5987c8","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify,","page_number":504,"box":{"x":116,"y":847,"width":721,"height":12}},{"id":"e2ce640f-a253-4693-be07-599785f7546b","block_type":"box","text":"among other requirements, each Fund will limit its investments so that, at the close of each quarter of","page_number":504,"box":{"x":116,"y":862,"width":757,"height":12}},{"id":"f9ffb57d-2cd6-47e3-bde9-1a8e1c348d51","block_type":"box","text":"the taxable year, (i) at least 50% of the market value of each Fund’s assets is represented by cash,","page_number":504,"box":{"x":116,"y":878,"width":741,"height":12}},{"id":"7f4328bf-6dfd-4430-9067-5d900a441116","block_type":"box","text":"II-106","page_number":504,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"fb856a4e-e280-48b9-bb7f-8df7d0f116ca","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":504,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"246006eb-a014-4dd4-8753-f4d175eae732","block_type":"box","text":"securities of other regulated investment companies, U.S. Government Securities and other securities,","page_number":505,"box":{"x":116,"y":87,"width":759,"height":12}},{"id":"506a3bb2-5e64-449f-862c-d1e236a775e2","block_type":"box","text":"with such other securities limited, in respect of any one issuer, to an amount not greater in value than","page_number":505,"box":{"x":116,"y":102,"width":756,"height":13}},{"id":"3f6fcb8f-40fa-4add-b899-ebae1eeb755e","block_type":"box","text":"5% of the Fund’s assets and not greater than 10% of the outstanding voting securities of such issuer","page_number":505,"box":{"x":116,"y":118,"width":751,"height":12}},{"id":"1db14f34-8a39-422e-97ad-5d35e465fe27","block_type":"box","text":"and (ii) not more than 25% of the value of its assets is invested in the securities (other than U.S.","page_number":505,"box":{"x":116,"y":134,"width":718,"height":12}},{"id":"2ec6c45e-8025-4de6-bafe-1fa3f8a9cba5","block_type":"box","text":"Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":505,"box":{"x":117,"y":149,"width":754,"height":12}},{"id":"4bccb4b3-2bbf-44c1-bc5b-732c789f130b","block_type":"box","text":"two or more issuers that the Fund controls and that are determined to be engaged in the same or","page_number":505,"box":{"x":116,"y":165,"width":726,"height":12}},{"id":"89244aba-bb8f-4b98-8c4c-39aabd60a916","block_type":"box","text":"similar trades or businesses or related trades or businesses or in the securities of one or more qualified","page_number":505,"box":{"x":116,"y":180,"width":772,"height":12}},{"id":"2553f60b-e84a-47ce-b1df-3c51e0b05b60","block_type":"box","text":"publicly traded partnerships (","page_number":505,"box":{"x":117,"y":196,"width":214,"height":12}},{"id":"ef9c7fe0-ae9d-4888-b2a0-aa717a4c8836","block_type":"box","text":"i.e.","page_number":505,"box":{"x":332,"y":196,"width":21,"height":9}},{"id":"db6157e3-e482-40ed-8259-ee931f82471d","block_type":"box","text":", partnerships that are traded on an established securities market or","page_number":505,"box":{"x":356,"y":196,"width":507,"height":11}},{"id":"279d8c11-e77a-42cf-b625-f37a9d783086","block_type":"box","text":"tradable on a secondary market, other than partnerships that derive 90% of their income from interest,","page_number":505,"box":{"x":116,"y":211,"width":764,"height":12}},{"id":"876adccd-c7a9-4528-b1a4-28ae3c181384","block_type":"box","text":"dividends, capital gains and other traditionally permitted mutual fund income). For purposes of this","page_number":505,"box":{"x":116,"y":227,"width":734,"height":12}},{"id":"02379aef-011e-409e-88e8-6d25f32d158f","block_type":"box","text":"restriction, the Municipal Funds generally will regard each state and each of its political subdivisions,","page_number":505,"box":{"x":117,"y":242,"width":749,"height":12}},{"id":"2278fdc1-c95f-4e89-a11b-715ed925b615","block_type":"box","text":"agencies or instrumentalities and each multi-state agency of which the state is a member as a","page_number":505,"box":{"x":116,"y":258,"width":703,"height":12}},{"id":"4f15f004-9722-4465-b936-eb0825c8be23","block_type":"box","text":"separate issuer. Each public authority that issues securities on behalf of a private entity generally will","page_number":505,"box":{"x":116,"y":273,"width":754,"height":12}},{"id":"e69aaea8-ef76-4616-b7dd-5f397f35657b","block_type":"box","text":"also be regarded as a separate issuer, except that if the security is backed only by the assets and","page_number":505,"box":{"x":116,"y":289,"width":731,"height":12}},{"id":"b73e420f-0de0-44aa-bc50-9fb96bd1497d","block_type":"box","text":"revenues of a non-government entity, then the entity with the ultimate responsibility for the payment of","page_number":505,"box":{"x":117,"y":304,"width":762,"height":12}},{"id":"fb645e7d-8ed7-4e1d-8747-538ae4cf3176","block_type":"box","text":"interest and principal may be regarded as the sole issuer.","page_number":505,"box":{"x":117,"y":320,"width":431,"height":12}},{"id":"cb5dfa19-23d6-483b-84e7-88199c5f7223","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10%","page_number":505,"box":{"x":117,"y":351,"width":759,"height":12}},{"id":"167cb9c6-6499-4dac-8d87-37fabe7f106c","block_type":"box","text":"and 25% diversification requirements of the Code discussed above, and the securities of each foreign","page_number":505,"box":{"x":116,"y":366,"width":759,"height":12}},{"id":"8aed541a-2f70-4081-8505-f111dcac3213","block_type":"box","text":"government issuer are considered to be obligations of a single issuer. These tax-related limitations","page_number":505,"box":{"x":116,"y":382,"width":737,"height":12}},{"id":"6e2dbdb6-488a-4a1c-bc95-f096ada75a69","block_type":"box","text":"may be changed by the Directors of a Fund to the extent necessary to comply with changes to the U.S.","page_number":505,"box":{"x":117,"y":397,"width":769,"height":12}},{"id":"feaa37b8-a35a-446a-bfe6-54e3a43570b2","block_type":"box","text":"federal tax requirements. A Fund that is “diversified” under the Investment Company Act must satisfy","page_number":505,"box":{"x":116,"y":413,"width":753,"height":12}},{"id":"425babb5-9e68-4446-b7a3-bdb3aea4bcb5","block_type":"box","text":"the foregoing 5% and 10% requirements with respect to 75% of its total assets.","page_number":505,"box":{"x":116,"y":428,"width":592,"height":12}},{"id":"204691a1-a0c0-4d7d-a781-8e50d1d96014","block_type":"box","text":"II-107","page_number":505,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"591b7f93-2b24-445d-a2d2-f2d182c6c609","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":505,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"38b63b1d-3f77-4a97-aca3-e6156d97415f","block_type":"box","text":"Appendix A","page_number":506,"box":{"x":453,"y":87,"width":98,"height":12}},{"id":"8a03b1e6-212f-48de-ba29-deb9c74580e4","block_type":"box","text":"Description of Bond Ratings","page_number":506,"box":{"x":387,"y":117,"width":231,"height":12}},{"id":"af975802-6d21-48ed-82c9-668507f872c9","block_type":"box","text":"A rating is generally assigned to a fixed-income security at the time of issuance by a credit rating","page_number":506,"box":{"x":116,"y":154,"width":722,"height":12}},{"id":"a1a333f9-6a41-4843-b8d2-73bc25b770d2","block_type":"box","text":"agency designated as a nationally recognized statistical rating organization (“NRSRO”) by the SEC.","page_number":506,"box":{"x":116,"y":170,"width":744,"height":12}},{"id":"e8be73fb-3af8-48d1-bac8-ddd0a42d3ed2","block_type":"box","text":"While NRSROs may from time to time revise such ratings, they undertake no obligation to do so, and","page_number":506,"box":{"x":116,"y":185,"width":755,"height":12}},{"id":"6df09877-63d7-4910-b760-cc8f293eb647","block_type":"box","text":"the ratings given to securities at issuance do not necessarily represent ratings which would be given to","page_number":506,"box":{"x":116,"y":201,"width":767,"height":12}},{"id":"893fa255-9df8-4976-b062-bd94eeffb11a","block_type":"box","text":"these securities on a particular subsequent date.","page_number":506,"box":{"x":116,"y":216,"width":366,"height":12}},{"id":"2bcaf475-b006-4a17-aa8c-30da4ee81394","block_type":"box","text":"NRSROs may rate specific investments (e.g., bonds), issuers (e.g., corporations, governments and","page_number":506,"box":{"x":117,"y":246,"width":740,"height":12}},{"id":"00f76111-8f00-477b-86c5-e693da3e6390","block_type":"box","text":"financial institutions) and/or programs (e.g., commercial paper programs). However, certain types of","page_number":506,"box":{"x":116,"y":261,"width":747,"height":13}},{"id":"436ae6c6-59a3-4efe-bcb7-97692f1e5120","block_type":"box","text":"investments may not be rated by NRSROs, such as certain government/sovereign obligations, US","page_number":506,"box":{"x":117,"y":277,"width":732,"height":12}},{"id":"9247cb4b-4364-4cd1-a6fe-01fd52f49279","block_type":"box","text":"agency securities, commercial paper, time deposits at financial institutions, and derivative instruments","page_number":506,"box":{"x":116,"y":292,"width":761,"height":13}},{"id":"d9354552-b18c-4afd-85f0-adf206c9774d","block_type":"box","text":"such as credit default swaps. For these types of investments, as well as US Treasury securities (some","page_number":506,"box":{"x":116,"y":308,"width":764,"height":12}},{"id":"0c3f3a6d-f34a-4a32-87dc-a7ef2f2f21ae","block_type":"box","text":"of which are not rated), where a NRSRO has not rated the specific investment but has rated the","page_number":506,"box":{"x":116,"y":323,"width":716,"height":13}},{"id":"6116e597-7679-4528-a75b-a0518a7bc0a1","block_type":"box","text":"investment’s issuer, program, financial institution or underlying reference asset, BlackRock Advisors,","page_number":506,"box":{"x":117,"y":339,"width":751,"height":12}},{"id":"c0afd605-6d06-4e0a-b394-8c9b83ec2d5e","block_type":"box","text":"LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider the investment","page_number":506,"box":{"x":117,"y":355,"width":766,"height":12}},{"id":"29160e3f-809e-4b76-992f-2351238fd9ac","block_type":"box","text":"to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":506,"box":{"x":116,"y":370,"width":736,"height":12}},{"id":"1c5726d7-1e1f-400b-b281-7cf2d1877db3","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings","page_number":506,"box":{"x":116,"y":386,"width":754,"height":12}},{"id":"5397b39a-ee8c-4d64-911c-5b1b4d801fd7","block_type":"box","text":"for the same security (e.g., “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider","page_number":506,"box":{"x":116,"y":401,"width":770,"height":12}},{"id":"dbd80e5e-ea6f-45d1-af65-1440e6359e9b","block_type":"box","text":"the security to have the highest of the multiple ratings.","page_number":506,"box":{"x":116,"y":417,"width":407,"height":12}},{"id":"c41cfd9b-0837-43c0-8854-cf899003ca4c","block_type":"box","text":"New issue securities (regardless of type) may not be rated by a NRSRO at the time of their initial","page_number":506,"box":{"x":117,"y":446,"width":722,"height":13}},{"id":"35c8529c-2180-491f-9e89-8a3f0b7bbdf0","block_type":"box","text":"offering. Preliminary prospectuses or term sheets for new issue securities may include an expected","page_number":506,"box":{"x":116,"y":462,"width":742,"height":12}},{"id":"f8c2544e-cb79-4143-b46c-932d45bf9450","block_type":"box","text":"rating for the security (as determined by the underwriter and/or issuer) or a NRSRO rating for the","page_number":506,"box":{"x":117,"y":477,"width":723,"height":13}},{"id":"f0c9fddf-cdb7-43ea-a4a8-041bd9ad2cac","block_type":"box","text":"issuer of the security. If applicable, when deciding whether to purchase a new issue security that has","page_number":506,"box":{"x":117,"y":493,"width":752,"height":12}},{"id":"8eef93e6-6713-4415-a37b-9fdba558bf84","block_type":"box","text":"not yet been rated by a NRSRO, BlackRock may attribute an expected rating to the security based on:","page_number":506,"box":{"x":117,"y":508,"width":763,"height":13}},{"id":"8bb018ce-e40a-466a-a17b-3053a2b2b87c","block_type":"box","text":"(i) the expected rating of the security set forth in the preliminary prospectus or term sheet for the","page_number":506,"box":{"x":117,"y":524,"width":718,"height":12}},{"id":"a3d4f4ad-dfe1-47ff-a3f3-54696f94cc5c","block_type":"box","text":"security; (ii) the NRSRO’s rating for the issuer of the security set forth in the preliminary prospectus or","page_number":506,"box":{"x":116,"y":539,"width":760,"height":13}},{"id":"b5fac2b2-9d8f-461f-a690-b3e03b7d4dcf","block_type":"box","text":"term sheet for the security; or (iii) with respect to asset-backed securities, the rating of a prior issuance","page_number":506,"box":{"x":116,"y":555,"width":767,"height":12}},{"id":"536b50e5-a985-42a9-a151-c05d02adea9b","block_type":"box","text":"having a similar structure or the same sponsor.","page_number":506,"box":{"x":117,"y":571,"width":353,"height":12}},{"id":"975a377d-1f37-465d-af2a-a12c21675d31","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit","page_number":506,"box":{"x":116,"y":600,"width":746,"height":12}},{"id":"c334ce28-f73b-40d0-860e-8a31b5287535","block_type":"box","text":"ratings eligibility criteria as part of its index methodology, the fund may purchase any security within the","page_number":506,"box":{"x":117,"y":616,"width":771,"height":12}},{"id":"369e9e8a-55e2-433f-b8a7-d71b8a36ed14","block_type":"box","text":"index, such security having been determined by the index provider as meeting its credit ratings","page_number":506,"box":{"x":117,"y":632,"width":707,"height":11}},{"id":"5d95e177-6ed6-4635-86b3-a9e7a3ea5bed","block_type":"box","text":"eligibility criteria. The credit ratings practices of an index provider may differ from BlackRock’s","page_number":506,"box":{"x":116,"y":647,"width":701,"height":12}},{"id":"570a4a5a-6cd7-4c4f-8a92-8428ef86999b","block_type":"box","text":"practices, as described above. Further, the fund may invest, directly or indirectly, in securities that are","page_number":506,"box":{"x":117,"y":662,"width":754,"height":12}},{"id":"ceeb0a5d-133d-4e94-a7f8-5c75ff47f5e6","block_type":"box","text":"not rated by a rating agency or securities with a credit rating that differs from the credit rating specified","page_number":506,"box":{"x":117,"y":678,"width":757,"height":12}},{"id":"dd28ad1e-7ae5-4535-98ad-96712d1d439b","block_type":"box","text":"in its index methodology in various circumstances, including where a security is downgraded but not","page_number":506,"box":{"x":117,"y":694,"width":741,"height":11}},{"id":"df6bab6a-e95f-4dea-ae9c-60ced6c4df35","block_type":"box","text":"yet removed from an index, following the removal of a security from an index prior to its sale by the","page_number":506,"box":{"x":116,"y":709,"width":733,"height":12}},{"id":"5a86405d-7083-4ced-b7d3-f496551ad499","block_type":"box","text":"fund or as a result of a corporate action or restructuring affecting an issuer of a security held by the","page_number":506,"box":{"x":116,"y":724,"width":734,"height":13}},{"id":"10518177-8d9c-4e2a-97e8-0999e6c26218","block_type":"box","text":"fund.","page_number":506,"box":{"x":116,"y":740,"width":36,"height":9}},{"id":"541ceffa-89e7-4d28-96ab-4203962d092f","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to","page_number":506,"box":{"x":117,"y":770,"width":757,"height":12}},{"id":"07a5c3b0-2a64-41e8-82a3-9714aa67f70b","block_type":"box","text":"pay interest or repay principal which are similar to the risks of lower-rated speculative bonds.","page_number":506,"box":{"x":117,"y":785,"width":686,"height":12}},{"id":"478915b1-cfba-4518-8caf-b082cb933e87","block_type":"box","text":"Evaluation of these securities is dependent on BlackRock’s judgment, analysis and experience in the","page_number":506,"box":{"x":117,"y":801,"width":747,"height":12}},{"id":"3aa0f11a-b31e-42a6-a7b7-2acc3e929dea","block_type":"box","text":"evaluation of such securities.","page_number":506,"box":{"x":116,"y":816,"width":214,"height":10}},{"id":"fba6a812-302e-4af6-9304-19ce35f57299","block_type":"box","text":"Investors should note that the assignment of a rating to a security by an NRSRO may not reflect the","page_number":506,"box":{"x":117,"y":846,"width":745,"height":12}},{"id":"9dfc81e0-4486-45a1-aaa1-01cd94325266","block_type":"box","text":"effect of recent developments on the issuer’s ability to make interest and principal payments or on the","page_number":506,"box":{"x":116,"y":862,"width":760,"height":12}},{"id":"c5bb16d8-422e-401c-9380-d31c9085aa17","block_type":"box","text":"likelihood of default.","page_number":506,"box":{"x":117,"y":877,"width":152,"height":10}},{"id":"4afaf68d-4bef-4023-bac5-40e2e34faeaf","block_type":"box","text":"A-1","page_number":506,"box":{"x":486,"y":909,"width":24,"height":9}},{"id":"05651c0b-f94c-45f4-acf2-7892be8201c0","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":506,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"898e308f-d1b1-47b0-8df7-0f33a7c6f79a","block_type":"box","text":"Securities deemed to be high yield are rated below Baa3 by Moody’s and below BBB- by S&P Global","page_number":507,"box":{"x":116,"y":87,"width":755,"height":12}},{"id":"e68d9875-188b-4396-8189-3edccb869e50","block_type":"box","text":"Ratings and Fitch.","page_number":507,"box":{"x":117,"y":103,"width":139,"height":12}},{"id":"243d7b10-eb62-4814-baf8-a924c35d7ba7","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":507,"box":{"x":116,"y":134,"width":674,"height":12}},{"id":"83023bb9-bea4-450a-8aa6-7a407cf512c0","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":507,"box":{"x":116,"y":165,"width":677,"height":12}},{"id":"05ead578-07b7-4e7f-94d8-f8dbc3da0d4c","block_type":"box","text":"Ratings assigned on Moody’s global long-term and short-term rating scales are forward-looking","page_number":507,"box":{"x":117,"y":196,"width":711,"height":12}},{"id":"fd1e1ae3-64f3-4db8-88b3-7762f2e56fd9","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial","page_number":507,"box":{"x":116,"y":211,"width":759,"height":12}},{"id":"377b2d5c-95a3-4700-b25d-238e383ec056","block_type":"box","text":"institutions, structured finance vehicles, project finance vehicles, and public sector entities. Moody’s","page_number":507,"box":{"x":117,"y":227,"width":742,"height":12}},{"id":"9be3d2f2-1aa4-482d-9698-aeb7a2bcf8bb","block_type":"box","text":"defines credit risk as the risk that an entity may not meet its contractual financial obligations as they","page_number":507,"box":{"x":116,"y":242,"width":744,"height":12}},{"id":"e90effd6-4e4b-456a-a336-ce272a4f07ce","block_type":"box","text":"come due and any estimated financial loss in the event of default or impairment. The contractual","page_number":507,"box":{"x":116,"y":258,"width":720,"height":12}},{"id":"a9747743-3b50-4f02-a7ff-e489abcf1113","block_type":"box","text":"financial obligations addressed by Moody’s ratings are those that call for, without regard to","page_number":507,"box":{"x":116,"y":273,"width":676,"height":12}},{"id":"1fd6019f-5aaa-4dc6-bc9c-deab01188ff6","block_type":"box","text":"enforceability, the payment of an ascertainable amount, which may vary based upon standard sources","page_number":507,"box":{"x":116,"y":289,"width":765,"height":12}},{"id":"9fd4eaaf-5387-49f3-97f0-1b1fb4060cb4","block_type":"box","text":"of variation (e.g., floating interest rates), by an ascertainable date. Moody’s rating addresses the","page_number":507,"box":{"x":116,"y":304,"width":719,"height":12}},{"id":"5d98de38-50c8-4f4f-95d0-5ead1e3f533f","block_type":"box","text":"issuer’s ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s","page_number":507,"box":{"x":117,"y":320,"width":738,"height":12}},{"id":"d33691f6-845a-48c9-9396-16a99aa079ed","block_type":"box","text":"ratings do not address non-standard sources of variation in the amount of the principal obligation (e.g.,","page_number":507,"box":{"x":117,"y":335,"width":765,"height":12}},{"id":"69527c54-d00c-44bd-b850-9ff13d6d39ed","block_type":"box","text":"equity indexed), absent an express statement to the contrary in a press release accompanying an","page_number":507,"box":{"x":116,"y":351,"width":731,"height":12}},{"id":"239e597c-1015-4303-b4aa-bc3e4f9c6e1d","block_type":"box","text":"initial rating. Long-term ratings are assigned to issuers or obligations with an original maturity of one","page_number":507,"box":{"x":117,"y":366,"width":745,"height":12}},{"id":"79d8a006-8857-40c1-9111-a11ea1c12ae6","block_type":"box","text":"year or more and reflect both on the likelihood of a default or impairment on contractual financial","page_number":507,"box":{"x":116,"y":382,"width":719,"height":12}},{"id":"b1823bb5-6267-4b86-9c93-8c3f2dae0f5d","block_type":"box","text":"obligations and the expected financial loss suffered in the event of default or impairment. Short-term","page_number":507,"box":{"x":116,"y":397,"width":747,"height":12}},{"id":"3e970461-3fca-424e-9dc2-403143012592","block_type":"box","text":"ratings are assigned for obligations with an original maturity of thirteen months or less and reflect both","page_number":507,"box":{"x":117,"y":413,"width":760,"height":12}},{"id":"3f04f511-f05f-4645-93e8-ba7b9f8bc238","block_type":"box","text":"on the likelihood of a default or impairment on contractual financial obligations and the expected","page_number":507,"box":{"x":116,"y":428,"width":717,"height":12}},{"id":"7a766fec-83b4-43ac-8c2a-9fba78fcc1ef","block_type":"box","text":"financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level","page_number":507,"box":{"x":116,"y":444,"width":755,"height":12}},{"id":"9d736c79-7c95-43f7-98af-bb5a51f38ea4","block_type":"box","text":"and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made","page_number":507,"box":{"x":116,"y":459,"width":761,"height":12}},{"id":"e3ba8dae-20ef-4953-8395-1133773e792d","block_type":"box","text":"publicly available although private and unpublished ratings may also be assigned.","page_number":507,"box":{"x":117,"y":475,"width":610,"height":12}},{"id":"3c5e2810-9a76-4a03-894f-8576848b3167","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (i.e., ratings on nonfinancial","page_number":507,"box":{"x":117,"y":506,"width":763,"height":12}},{"id":"77c0cab8-1f49-4dcb-b95b-25b28bf3ef9a","block_type":"box","text":"corporate, financial institution, and public sector entities) on the global long-term scale by adding (sf) to","page_number":507,"box":{"x":116,"y":521,"width":769,"height":12}},{"id":"92227927-cb78-40cc-9571-36c4245a3de8","block_type":"box","text":"all structured finance ratings. The addition of (sf) to structured finance ratings should eliminate any","page_number":507,"box":{"x":116,"y":537,"width":735,"height":12}},{"id":"b83b48a4-4153-4bc9-9104-24dc726439a3","block_type":"box","text":"presumption that such ratings and fundamental ratings at the same letter grade level will behave the","page_number":507,"box":{"x":117,"y":552,"width":747,"height":12}},{"id":"08c8d22a-8468-4d3a-b2a5-2715b1cefe8c","block_type":"box","text":"same. The (sf) indicator for structured finance security ratings indicates that otherwise similarly rated","page_number":507,"box":{"x":116,"y":568,"width":751,"height":12}},{"id":"5d026dc5-781d-4067-ad01-3605ae2123bf","block_type":"box","text":"structured finance and fundamental securities may have different risk characteristics. Through its","page_number":507,"box":{"x":116,"y":583,"width":724,"height":12}},{"id":"13fa2f5c-6aa1-472e-bd17-59e4b8721b9c","block_type":"box","text":"current methodologies, however, Moody’s aspires to achieve broad expected equivalence in structured","page_number":507,"box":{"x":116,"y":599,"width":769,"height":12}},{"id":"5ea75942-408e-44f6-9a4e-15748ade7203","block_type":"box","text":"finance and fundamental rating performance when measured over a long period of time.","page_number":507,"box":{"x":116,"y":614,"width":658,"height":12}},{"id":"751fbec6-033e-466b-8c16-a1cf7a01f80f","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":507,"box":{"x":117,"y":645,"width":445,"height":12}},{"id":"f374037b-fd15-40ba-8659-41a86f3d8310","block_type":"box","text":"Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level","page_number":507,"box":{"x":116,"y":676,"width":756,"height":12}},{"id":"8842e32b-79c1-4ca6-9dcf-c70bc7d88837","block_type":"box","text":"of credit risk.","page_number":507,"box":{"x":226,"y":692,"width":93,"height":9}},{"id":"5c380b3d-f28f-4f6b-9da9-856c807c6d3e","block_type":"box","text":"Aa Obligations rated Aa are judged to be of high quality and are subject to very low credit","page_number":507,"box":{"x":116,"y":715,"width":747,"height":12}},{"id":"7263d124-61a3-480a-8749-4785d9e1fcfd","block_type":"box","text":"risk.","page_number":507,"box":{"x":226,"y":731,"width":28,"height":9}},{"id":"90782982-74ab-4326-9f9a-a6c2b30834fa","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit","page_number":507,"box":{"x":116,"y":754,"width":754,"height":12}},{"id":"668d0cfc-0caf-4fee-90d3-ba8b5d9260f6","block_type":"box","text":"risk.","page_number":507,"box":{"x":226,"y":769,"width":28,"height":10}},{"id":"ced85049-603a-4272-9667-741cad7b1566","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit","page_number":507,"box":{"x":117,"y":792,"width":741,"height":13}},{"id":"ef2d8727-de61-441b-9dc4-5f2bfe36a747","block_type":"box","text":"risk and as such may possess certain speculative characteristics.","page_number":507,"box":{"x":226,"y":808,"width":483,"height":12}},{"id":"238704af-1994-4983-984c-3e198c4d96ed","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit","page_number":507,"box":{"x":117,"y":831,"width":750,"height":12}},{"id":"e9a7ff93-6b32-4f08-b4e7-8ceefd71c272","block_type":"box","text":"risk.","page_number":507,"box":{"x":226,"y":847,"width":35,"height":9}},{"id":"ec026b81-285f-4c98-9e84-bef3424c9ba6","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":507,"box":{"x":117,"y":870,"width":717,"height":12}},{"id":"1f8b19c1-b7e9-4dbb-8ec6-2553310efc9b","block_type":"box","text":"A-2","page_number":507,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"43588910-8d7f-4a41-a5dc-a0feb44ee10b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":507,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"843de2f0-821f-4ba7-ac5f-540f9415f669","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to","page_number":508,"box":{"x":117,"y":87,"width":755,"height":12}},{"id":"f3f89e42-6cb5-44b6-8c66-e08f34b29a76","block_type":"box","text":"very high credit risk.","page_number":508,"box":{"x":225,"y":103,"width":154,"height":12}},{"id":"74b09133-eff4-42af-8d86-8506a315e379","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with","page_number":508,"box":{"x":117,"y":126,"width":753,"height":12}},{"id":"ef97566c-c139-426b-bddb-6b478e1c62c6","block_type":"box","text":"some prospect of recovery of principal and interest.","page_number":508,"box":{"x":226,"y":141,"width":386,"height":12}},{"id":"95f76826-23ab-4551-86b1-f3eff1510250","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect","page_number":508,"box":{"x":117,"y":165,"width":752,"height":12}},{"id":"a3c528c9-817f-45c8-94cd-e3bcdee69df2","block_type":"box","text":"for recovery of principal or interest.","page_number":508,"box":{"x":225,"y":180,"width":264,"height":12}},{"id":"2c570f14-c0b1-4c11-9501-a1b38238e053","block_type":"box","text":"Note:","page_number":508,"box":{"x":117,"y":210,"width":39,"height":9}},{"id":"ab11dc3b-7727-4ba7-962b-a84ebc56a957","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa","page_number":508,"box":{"x":156,"y":210,"width":706,"height":12}},{"id":"fce99965-6537-4185-a97b-c31820f721a9","block_type":"box","text":"through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating","page_number":508,"box":{"x":116,"y":225,"width":745,"height":12}},{"id":"71c85785-b72e-4b4c-a42b-2097ea81f141","block_type":"box","text":"category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the","page_number":508,"box":{"x":116,"y":241,"width":741,"height":12}},{"id":"1aad35c3-1fe8-4733-8cc6-4ef5a215d6a3","block_type":"box","text":"lower end of that generic rating category. Additionally, a “(hyb)” indicator is appended to all ratings of","page_number":508,"box":{"x":117,"y":256,"width":751,"height":12}},{"id":"54a579f7-535c-4307-b28b-7436cefc99fa","block_type":"box","text":"hybrid securities issued by banks, insurers, finance companies, and securities firms.","page_number":508,"box":{"x":117,"y":272,"width":628,"height":12}},{"id":"48cca829-4e29-4e2a-b54e-b3792462cc60","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal","page_number":508,"box":{"x":117,"y":301,"width":737,"height":12}},{"id":"007bbda3-80c8-4401-aa13-4e414cc55136","block_type":"box","text":"payments, which can potentially result in impairment if such an omission occurs. Hybrid securities may","page_number":508,"box":{"x":117,"y":317,"width":765,"height":12}},{"id":"826a0726-ff7a-4cfb-8f91-5803a18cc521","block_type":"box","text":"also be subject to contractually allowable write-downs of principal that could result in impairment.","page_number":508,"box":{"x":116,"y":332,"width":724,"height":12}},{"id":"8612fa92-3b30-4f36-8c1a-b6363ff30bce","block_type":"box","text":"Together with the hybrid indicator, the long-term obligation rating assigned to a hybrid security is an","page_number":508,"box":{"x":116,"y":348,"width":744,"height":12}},{"id":"8b3b46ce-a475-4230-9df2-0dfbae999e78","block_type":"box","text":"expression of the relative credit risk associated with that security.","page_number":508,"box":{"x":116,"y":363,"width":488,"height":12}},{"id":"dac5a7cf-84c4-4c41-a817-d33bc7947468","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":508,"box":{"x":117,"y":393,"width":448,"height":12}},{"id":"f027cc7f-6cd8-41f4-a6f5-5ae388b25e29","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":508,"box":{"x":117,"y":422,"width":667,"height":13}},{"id":"8d6aa76a-8066-41a6-99a3-e623328f2bd3","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":508,"box":{"x":117,"y":446,"width":653,"height":12}},{"id":"17f2e158-be58-4c76-b8a2-83a0005d4399","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":508,"box":{"x":117,"y":469,"width":697,"height":12}},{"id":"a19fadd1-d9e9-42ae-928f-aedf1d1829f7","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime","page_number":508,"box":{"x":117,"y":492,"width":741,"height":12}},{"id":"392994b8-2021-4a6d-ba94-f39d2fdaa70e","block_type":"box","text":"rating categories.","page_number":508,"box":{"x":226,"y":508,"width":133,"height":12}},{"id":"af5cdb6a-2bb1-47be-88f0-7595f8af9905","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":508,"box":{"x":117,"y":537,"width":707,"height":12}},{"id":"562e70d1-6a9d-481f-b62b-3b52db008a9e","block_type":"box","text":"Description of Moody’s Short-Term Obligation Ratings","page_number":508,"box":{"x":117,"y":567,"width":439,"height":12}},{"id":"1befb301-b61e-4f69-b5b6-1a82413111dd","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S.","page_number":508,"box":{"x":117,"y":596,"width":681,"height":13}},{"id":"92625577-4ee0-4b49-b6e1-3d6b2e4486d2","block_type":"box","text":"municipalities and nonprofits. These commercial paper programs may be backed by external letters of","page_number":508,"box":{"x":117,"y":612,"width":761,"height":12}},{"id":"1f5aa4d6-59d0-4bc6-a1f4-731950714b37","block_type":"box","text":"credit or liquidity facilities, or by an issuer’s self-liquidity.","page_number":508,"box":{"x":116,"y":627,"width":420,"height":13}},{"id":"318a4012-9e6a-4caf-b0d8-e9620f644606","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":508,"box":{"x":117,"y":657,"width":765,"height":12}},{"id":"ee1d1547-4709-4cb5-869d-a777742416fb","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales","page_number":508,"box":{"x":117,"y":673,"width":703,"height":12}},{"id":"d77fbe7d-c955-44c0-9338-2a6ad854e244","block_type":"box","text":"discussed below.","page_number":508,"box":{"x":116,"y":688,"width":126,"height":10}},{"id":"cd7ae852-dbbf-4fa7-a1e0-0aeac3d047ec","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain","page_number":508,"box":{"x":117,"y":718,"width":738,"height":12}},{"id":"2e5d77b9-7959-467d-83da-6b902a4b6128","block_type":"box","text":"other short-term obligations, which typically mature in three years or less. Under certain circumstances,","page_number":508,"box":{"x":116,"y":733,"width":766,"height":12}},{"id":"4df7f443-89dc-47d9-bc6c-9d0ecc2afbbe","block_type":"box","text":"Moody’s uses the MIG scale for bond anticipation notes with maturities of up to five years.","page_number":508,"box":{"x":117,"y":749,"width":665,"height":12}},{"id":"e2574a8d-d17e-4da6-bc51-3d0a9a2ae94f","block_type":"box","text":"MIG Scale","page_number":508,"box":{"x":117,"y":778,"width":77,"height":10}},{"id":"bc36d8fc-354d-4f03-aeac-f1240b66ce2f","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by","page_number":508,"box":{"x":117,"y":808,"width":722,"height":12}},{"id":"d1cbb736-a5ec-48d5-af42-3d08d75cec17","block_type":"box","text":"established cash flows, highly reliable liquidity support, or demonstrated broad-based","page_number":508,"box":{"x":226,"y":823,"width":631,"height":12}},{"id":"7c6d67b3-9500-4917-af10-b38e417db09d","block_type":"box","text":"access to the market for refinancing.","page_number":508,"box":{"x":226,"y":839,"width":275,"height":12}},{"id":"ecc38bd9-7702-4ee4-b030-3bba0f096a76","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although","page_number":508,"box":{"x":117,"y":862,"width":771,"height":12}},{"id":"2680ec00-4579-4833-a9bb-f70a80f9f8a1","block_type":"box","text":"not as large as in the preceding group.","page_number":508,"box":{"x":226,"y":878,"width":291,"height":12}},{"id":"7e29925b-b4d8-49a2-a34c-705e21d47e33","block_type":"box","text":"A-3","page_number":508,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"0f676e18-6a8f-4ef0-89fd-92ba6916a204","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":508,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b90d457e-49c3-4768-85cc-da7bc70667be","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection","page_number":509,"box":{"x":117,"y":87,"width":743,"height":12}},{"id":"c804b982-3b9b-4e81-b015-127fe3e8309f","block_type":"box","text":"may be narrow, and market access for refinancing is likely to be less well-established.","page_number":509,"box":{"x":226,"y":102,"width":642,"height":13}},{"id":"d10392b5-9cf8-40e3-bafc-e92dc10993f4","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this","page_number":509,"box":{"x":116,"y":126,"width":723,"height":12}},{"id":"6931ed86-7b2b-4b6f-9f2d-78282c4b6f66","block_type":"box","text":"category may lack sufficient margins of protection.","page_number":509,"box":{"x":226,"y":141,"width":377,"height":12}},{"id":"5f1ce216-568a-4dcf-83e6-f14d88e14d98","block_type":"box","text":"Description of Moody’s Demand Obligation Ratings","page_number":509,"box":{"x":117,"y":172,"width":415,"height":12}},{"id":"138164b4-0ebc-4fe8-814b-356cc87649d8","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The","page_number":509,"box":{"x":117,"y":203,"width":749,"height":12}},{"id":"000c96e3-07b5-4018-b360-f9ed2b7d9529","block_type":"box","text":"components are a long-term rating and a short-term demand obligation rating. The long-term rating","page_number":509,"box":{"x":116,"y":219,"width":740,"height":12}},{"id":"5d19b4e4-2f5e-4344-8232-da56c5722e45","block_type":"box","text":"addresses the issuer’s ability to meet scheduled principal and interest payments. The short-term","page_number":509,"box":{"x":116,"y":234,"width":719,"height":12}},{"id":"55185504-44c4-4fb6-b08a-1073af3153ef","block_type":"box","text":"demand obligation rating addresses the ability of the issuer or the liquidity provider to make payments","page_number":509,"box":{"x":116,"y":250,"width":759,"height":12}},{"id":"901e216a-1444-4dbd-be79-2edf500f73a7","block_type":"box","text":"associated with the purchase-price-upon-demand feature (“demand feature”) of the VRDO. The short","page_number":509,"box":{"x":116,"y":265,"width":756,"height":12}},{"id":"274f24d9-5e66-440e-b520-ed54ecddc735","block_type":"box","text":"term demand obligation rating uses the VMIG scale. VMIG ratings with liquidity support use as an input","page_number":509,"box":{"x":116,"y":281,"width":770,"height":12}},{"id":"af5ad58f-a2d8-45f1-9d88-a5ccfd2675f2","block_type":"box","text":"the short-term Counterparty Risk Assessment of the support provider, or the long-term rating of the","page_number":509,"box":{"x":116,"y":296,"width":740,"height":12}},{"id":"eae8ed5d-7fa0-4e4e-953f-6e3cb2b8298d","block_type":"box","text":"underlying obligor in the absence of third party liquidity support. Transitions of VMIG ratings of demand","page_number":509,"box":{"x":117,"y":312,"width":768,"height":12}},{"id":"15919248-8859-4d32-82ef-1afd09576df5","block_type":"box","text":"obligations with conditional liquidity support differ from transitions on the Prime scale to reflect the risk","page_number":509,"box":{"x":116,"y":327,"width":760,"height":12}},{"id":"3c34a9c9-784b-40f9-9ecc-b89ad4013613","block_type":"box","text":"that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":509,"box":{"x":116,"y":343,"width":729,"height":12}},{"id":"bad32a61-3480-4e61-9b59-0f482413c477","block_type":"box","text":"grade.","page_number":509,"box":{"x":116,"y":358,"width":52,"height":12}},{"id":"10e071fa-4ef0-4a87-b690-2ef530b6903c","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand","page_number":509,"box":{"x":117,"y":389,"width":771,"height":12}},{"id":"c06228e1-84e9-44ed-ba1a-32581b1aea1f","block_type":"box","text":"feature is less than every three years. If the frequency of the demand feature is less than three years","page_number":509,"box":{"x":116,"y":405,"width":753,"height":12}},{"id":"ce5a24a1-1f0c-4ffb-b78f-51f534bfd22f","block_type":"box","text":"but the purchase price is payable only with remarketing proceeds, the short-term demand obligation","page_number":509,"box":{"x":117,"y":420,"width":745,"height":12}},{"id":"b39dfc5f-bae3-418c-8d7e-7403d43f956e","block_type":"box","text":"rating is “NR”.","page_number":509,"box":{"x":117,"y":436,"width":107,"height":12}},{"id":"d47f051a-8090-40d2-851e-5638516216ed","block_type":"box","text":"VMIG Scale","page_number":509,"box":{"x":116,"y":467,"width":94,"height":9}},{"id":"e2b39f24-a650-4cf6-b4c9-2e778d2756de","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the","page_number":509,"box":{"x":116,"y":498,"width":756,"height":12}},{"id":"02bf2a81-99cc-421e-8b94-c43d4b7242b0","block_type":"box","text":"superior short-term credit strength of the liquidity provider and structural and legal","page_number":509,"box":{"x":226,"y":513,"width":610,"height":12}},{"id":"72342b44-d24b-4123-b80f-1521521cd5fb","block_type":"box","text":"protections that ensure the timely payment of purchase price upon demand.","page_number":509,"box":{"x":226,"y":529,"width":567,"height":12}},{"id":"7472ba6a-3b50-4aef-8b5e-37b67bdc2b35","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong","page_number":509,"box":{"x":116,"y":552,"width":766,"height":12}},{"id":"40ad9fdd-cab3-4bfa-ab5a-b1eb71714260","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections","page_number":509,"box":{"x":226,"y":568,"width":632,"height":12}},{"id":"8fa9f762-8935-4b53-b0d2-faa9b26e18d8","block_type":"box","text":"that ensure the timely payment of purchase price upon demand.","page_number":509,"box":{"x":225,"y":583,"width":481,"height":12}},{"id":"eedef2c1-0c55-430e-92b0-bc1545b72449","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by","page_number":509,"box":{"x":116,"y":606,"width":752,"height":12}},{"id":"2766baf1-3c28-42d6-940f-d3f2e606b414","block_type":"box","text":"the satisfactory short-term credit strength of the liquidity provider and structural and","page_number":509,"box":{"x":225,"y":622,"width":624,"height":12}},{"id":"63a81695-4a80-4e18-9344-cdf3118d3ee7","block_type":"box","text":"legal protections that ensure the timely payment of purchase price upon demand.","page_number":509,"box":{"x":226,"y":637,"width":607,"height":12}},{"id":"12cdd7e7-fe24-4646-b538-fb597eb5ff10","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this","page_number":509,"box":{"x":116,"y":661,"width":762,"height":12}},{"id":"e9711471-aa0c-4909-a3fa-799d759224fb","block_type":"box","text":"category may be supported by a liquidity provider that does not have a sufficiently","page_number":509,"box":{"x":226,"y":676,"width":606,"height":12}},{"id":"824cee02-e278-4e33-8811-023492aeda79","block_type":"box","text":"strong short-term rating or may lack the structural or legal protections necessary to","page_number":509,"box":{"x":226,"y":692,"width":614,"height":12}},{"id":"e5723877-5cae-446b-9e74-6ab545f72ffd","block_type":"box","text":"ensure the timely payment of purchase price upon demand.","page_number":509,"box":{"x":226,"y":707,"width":441,"height":12}},{"id":"f275f09a-ad95-415e-8895-dfae6d255abc","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":509,"box":{"x":117,"y":738,"width":753,"height":12}},{"id":"2e8cbeb7-0705-4f93-bfc4-b0cba31c68ce","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with","page_number":509,"box":{"x":116,"y":769,"width":737,"height":12}},{"id":"673f7bf3-ebff-4abc-98a2-a23fd573ef77","block_type":"box","text":"respect to a specific financial obligation, a specific class of financial obligations, or a specific financial","page_number":509,"box":{"x":117,"y":785,"width":748,"height":12}},{"id":"22060598-ccc1-4e41-93bd-156b4d0dd274","block_type":"box","text":"program (including ratings on medium-term note programs and commercial paper programs). It takes","page_number":509,"box":{"x":117,"y":800,"width":750,"height":12}},{"id":"9643fe9c-b191-4f3b-a80e-8b75f8f74a51","block_type":"box","text":"into consideration the creditworthiness of guarantors, insurers, or other forms of credit enhancement","page_number":509,"box":{"x":117,"y":816,"width":744,"height":12}},{"id":"dc490613-a124-4bd7-a0cb-1396e596a8dd","block_type":"box","text":"on the obligation and takes into account the currency in which the obligation is denominated. The","page_number":509,"box":{"x":116,"y":831,"width":726,"height":12}},{"id":"fcc98618-970d-4e6b-9409-86bd955c4094","block_type":"box","text":"opinion reflects S&P’s view of the obligor’s capacity and willingness to meet its financial commitments","page_number":509,"box":{"x":116,"y":847,"width":759,"height":12}},{"id":"8c18c2d9-6270-4507-9b88-a238df3f6a34","block_type":"box","text":"as they come due, and this opinion may assess terms, such as collateral security and subordination,","page_number":509,"box":{"x":116,"y":862,"width":750,"height":12}},{"id":"04c7df41-1b82-4fe6-a683-c9d58dfa78bd","block_type":"box","text":"which could affect ultimate payment in the event of default.","page_number":509,"box":{"x":116,"y":878,"width":441,"height":12}},{"id":"f9c1dca2-c103-4fae-9434-ef0587c7baff","block_type":"box","text":"A-4","page_number":509,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"2495b392-a98a-4d23-a0d7-7cc526bf3edd","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":509,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9160e66d-6559-4fa6-83ac-05ca753eb371","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally","page_number":510,"box":{"x":117,"y":87,"width":760,"height":12}},{"id":"c80da6f6-54c4-4ec5-86e1-25ddba42a34b","block_type":"box","text":"assigned to those obligations considered short-term in the relevant market, typically with an original","page_number":510,"box":{"x":116,"y":103,"width":743,"height":12}},{"id":"09120ebf-ff6a-4147-bd2f-76d4b17594e3","block_type":"box","text":"maturity of no more than 365 days. Short-term issue credit ratings are also used to indicate the","page_number":510,"box":{"x":117,"y":118,"width":708,"height":12}},{"id":"cfd27b14-06d6-4110-9793-8c4f2d7134db","block_type":"box","text":"creditworthiness of an obligor with respect to put features on long-term obligations. S&P would typically","page_number":510,"box":{"x":116,"y":134,"width":771,"height":12}},{"id":"4507f3bd-df8b-401f-909b-ad57e1b77047","block_type":"box","text":"assign a long-term issue credit rating to an obligation with an original maturity of greater than 365 days.","page_number":510,"box":{"x":116,"y":149,"width":772,"height":12}},{"id":"e6a0d458-2f91-45e6-b4fa-1c02fa3665e4","block_type":"box","text":"However, the ratings S&P assigns to certain instruments may diverge from these guidelines based on","page_number":510,"box":{"x":117,"y":165,"width":758,"height":12}},{"id":"b82cfe1b-c39f-467d-826e-4533f4e5bb2b","block_type":"box","text":"market practices. Medium-term notes are assigned long-term ratings.","page_number":510,"box":{"x":117,"y":180,"width":518,"height":12}},{"id":"c46cf03b-3957-4501-8d70-0ea3acdc728d","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":510,"box":{"x":117,"y":208,"width":750,"height":12}},{"id":"bc9e97bd-a120-4686-a364-e6384217ea9c","block_type":"box","text":"• The likelihood of payment — the capacity and willingness of the obligor to meet its financial","page_number":510,"box":{"x":117,"y":237,"width":714,"height":12}},{"id":"91aa66b6-5cb9-4737-b003-eb58875ae10e","block_type":"box","text":"commitments on an obligation in accordance with the terms of the obligation;","page_number":510,"box":{"x":150,"y":252,"width":575,"height":12}},{"id":"e58a0ad3-51a0-4192-9029-50897e825278","block_type":"box","text":"• The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":510,"box":{"x":117,"y":274,"width":691,"height":12}},{"id":"52c1e17f-74d1-4b3a-bfc2-455b9baa7476","block_type":"box","text":"• The protection afforded by, and relative position of, the financial obligation in the event of a","page_number":510,"box":{"x":117,"y":296,"width":712,"height":12}},{"id":"dbbf93d1-5cbf-48ca-8f38-88e9a07167b7","block_type":"box","text":"bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws","page_number":510,"box":{"x":150,"y":312,"width":704,"height":12}},{"id":"bf7c6895-1d20-496c-b042-f6106190e577","block_type":"box","text":"affecting creditors’ rights.","page_number":510,"box":{"x":150,"y":327,"width":191,"height":12}},{"id":"19b0c1db-6baa-4888-84e9-0e1bfdbf95cb","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority","page_number":510,"box":{"x":116,"y":355,"width":772,"height":13}},{"id":"4e426abe-8616-4682-859a-a51fbec1abde","block_type":"box","text":"or ultimate recovery in the event of default. Junior obligations are typically rated lower than senior","page_number":510,"box":{"x":116,"y":371,"width":728,"height":12}},{"id":"c52b44a7-02df-4425-8028-4426c72bb0cc","block_type":"box","text":"obligations, to reflect lower priority in bankruptcy, as noted above. (Such differentiation may apply","page_number":510,"box":{"x":116,"y":386,"width":729,"height":13}},{"id":"f7926676-73ad-4977-be43-47aea409251b","block_type":"box","text":"when an entity has both senior and subordinated obligations, secured and unsecured obligations, or","page_number":510,"box":{"x":116,"y":402,"width":747,"height":12}},{"id":"8d6d9c21-5dbb-4c63-aba1-f180012f665b","block_type":"box","text":"operating company and holding company obligations.)","page_number":510,"box":{"x":116,"y":417,"width":407,"height":13}},{"id":"458a51ea-fd54-418e-b8fa-822b9a21f3fd","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":510,"box":{"x":117,"y":446,"width":265,"height":12}},{"id":"4792ff7b-5512-4ae1-8cab-5c11dbe8cd65","block_type":"box","text":"AAA An obligation rated ‘AAA’ has the highest rating assigned by S&P. The obligor’s capacity","page_number":510,"box":{"x":116,"y":474,"width":770,"height":12}},{"id":"f64a6b4a-e3e3-4371-9853-f60fb201cff3","block_type":"box","text":"to meet its financial commitments on the obligation is extremely strong.","page_number":510,"box":{"x":225,"y":490,"width":533,"height":12}},{"id":"feb868dd-d0db-4260-82e8-cd3890f3f303","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree.","page_number":510,"box":{"x":116,"y":513,"width":768,"height":12}},{"id":"edafb5f1-b1a1-4a3b-a68d-318c6f5eecc5","block_type":"box","text":"The obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":510,"box":{"x":225,"y":528,"width":659,"height":13}},{"id":"3e403aa7-72c6-4c90-9638-e82ff8b54624","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes","page_number":510,"box":{"x":116,"y":552,"width":760,"height":12}},{"id":"f29789fa-1754-4f31-ac07-2765b4cd5627","block_type":"box","text":"in circumstances and economic conditions than obligations in higher-rated categories.","page_number":510,"box":{"x":226,"y":567,"width":642,"height":12}},{"id":"16397e91-5159-44a3-86f6-341bf47fde87","block_type":"box","text":"However, the obligor’s capacity to meet its financial commitments on the obligation is","page_number":510,"box":{"x":226,"y":583,"width":635,"height":12}},{"id":"c3badaaa-d2d1-474d-b803-b812fafd4626","block_type":"box","text":"still strong.","page_number":510,"box":{"x":226,"y":598,"width":84,"height":12}},{"id":"ca80d042-ab50-44f7-af34-df619f777ee2","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse","page_number":510,"box":{"x":117,"y":621,"width":749,"height":13}},{"id":"a47df559-0702-49e7-892d-f31269742299","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken the obligor’s","page_number":510,"box":{"x":226,"y":637,"width":652,"height":12}},{"id":"687b2be4-c039-4a28-9b74-082533d8fc74","block_type":"box","text":"capacity to meet its financial commitments on the obligation.","page_number":510,"box":{"x":226,"y":652,"width":452,"height":13}},{"id":"a859befa-4b10-4a3a-9021-d03f82b54e1e","block_type":"box","text":"BB, B,","page_number":510,"box":{"x":117,"y":676,"width":45,"height":11}},{"id":"794b5ab1-54f9-4265-bc57-33d96817f4d9","block_type":"box","text":"CCC, CC,","page_number":510,"box":{"x":117,"y":691,"width":72,"height":11}},{"id":"2e464c21-3f3f-40ea-b79e-dfeeecdc4566","block_type":"box","text":"and C","page_number":510,"box":{"x":116,"y":707,"width":44,"height":9}},{"id":"907e17f1-68b1-463f-8471-dc09b81a540b","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant","page_number":510,"box":{"x":226,"y":676,"width":602,"height":12}},{"id":"68b40712-d2cc-4825-9def-af63b4d2db49","block_type":"box","text":"speculative characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the","page_number":510,"box":{"x":226,"y":691,"width":624,"height":12}},{"id":"d9b4bfe5-ebde-4a1a-b467-2bf7b123a89f","block_type":"box","text":"highest. While such obligations will likely have some quality and protective","page_number":510,"box":{"x":226,"y":707,"width":550,"height":12}},{"id":"e7534d10-3ce5-4cb1-82fe-81cf611601f6","block_type":"box","text":"characteristics, these may be outweighed by large uncertainties or major exposure to","page_number":510,"box":{"x":226,"y":722,"width":631,"height":12}},{"id":"6c9e1566-0154-44ec-822b-0acb2864201f","block_type":"box","text":"adverse conditions.","page_number":510,"box":{"x":226,"y":738,"width":143,"height":9}},{"id":"1630222a-2467-4acf-8ca5-2cec9b745c7a","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues.","page_number":510,"box":{"x":117,"y":761,"width":758,"height":12}},{"id":"4847835c-6927-4681-ba96-b33f76e8244e","block_type":"box","text":"However, it faces major ongoing uncertainties or exposure to adverse business,","page_number":510,"box":{"x":226,"y":776,"width":591,"height":13}},{"id":"4a02886a-c41b-42e6-a2c4-efa4447ffc3f","block_type":"box","text":"financial, or economic conditions that could lead to the obligor’s inadequate capacity to","page_number":510,"box":{"x":225,"y":792,"width":644,"height":12}},{"id":"3d799824-564d-4cf2-94c9-83fa31248212","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":510,"box":{"x":226,"y":807,"width":361,"height":13}},{"id":"bca7617d-1566-439c-9aa6-fd26f054e52a","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but","page_number":510,"box":{"x":117,"y":831,"width":767,"height":12}},{"id":"053c91ab-de07-4e69-b39b-e9316d85a4f1","block_type":"box","text":"the obligor currently has the capacity to meet its financial commitments on the","page_number":510,"box":{"x":225,"y":846,"width":584,"height":12}},{"id":"e73f71e9-5209-4863-abbb-fb009d4e9289","block_type":"box","text":"obligation. Adverse business, financial, or economic conditions will likely impair the","page_number":510,"box":{"x":226,"y":862,"width":619,"height":12}},{"id":"0daf79ce-0165-453d-9ace-8bee00814f4f","block_type":"box","text":"obligor’s capacity or willingness to meet its financial commitments on the obligation.","page_number":510,"box":{"x":226,"y":877,"width":625,"height":12}},{"id":"bf9e187e-6b3d-450f-8ffa-2c1a30ffd5d5","block_type":"box","text":"A-5","page_number":510,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"b90445f4-3f4c-4a18-a50c-f38a3b5983f5","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":510,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"228a8188-326f-4dce-8574-a4d78e61646e","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon","page_number":511,"box":{"x":117,"y":87,"width":762,"height":12}},{"id":"bb8bffc8-d1ca-4a92-91b6-939ca7afa6bc","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its","page_number":511,"box":{"x":225,"y":102,"width":601,"height":13}},{"id":"f70cb8ae-d41c-4f26-b981-5f8e568e4fd0","block_type":"box","text":"financial commitments on the obligation. In the event of adverse business, financial, or","page_number":511,"box":{"x":225,"y":118,"width":647,"height":12}},{"id":"0a6159ba-900e-45f2-97ae-a3984a728160","block_type":"box","text":"economic conditions, the obligor is not likely to have the capacity to meet its financial","page_number":511,"box":{"x":226,"y":134,"width":634,"height":12}},{"id":"66da7fa4-53b6-4ed0-a6d8-4713ec127233","block_type":"box","text":"commitments on the obligation.","page_number":511,"box":{"x":226,"y":149,"width":237,"height":12}},{"id":"30fca62b-3749-4590-8304-aaabbcf93c51","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is","page_number":511,"box":{"x":117,"y":172,"width":761,"height":12}},{"id":"f1aa723d-9765-42b7-91b2-3a708a67dcf7","block_type":"box","text":"used when a default has not yet occurred but S&P expects default to be a virtual","page_number":511,"box":{"x":226,"y":188,"width":602,"height":12}},{"id":"74227194-67f8-4241-9f12-d7744eaf59fd","block_type":"box","text":"certainty, regardless of the anticipated time to default.","page_number":511,"box":{"x":226,"y":203,"width":404,"height":12}},{"id":"b825afdf-ef68-4d3c-942d-0120b1143031","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is","page_number":511,"box":{"x":117,"y":227,"width":769,"height":12}},{"id":"b394e934-e052-4cf8-976e-c5d0bc55ed87","block_type":"box","text":"expected to have lower relative seniority or lower ultimate recovery compared with","page_number":511,"box":{"x":226,"y":242,"width":615,"height":12}},{"id":"9e58fed9-97a1-4fde-81d3-4051eba2e62f","block_type":"box","text":"obligations that are rated higher.","page_number":511,"box":{"x":226,"y":258,"width":245,"height":12}},{"id":"f221309d-afc1-45bb-b97b-88e59c860812","block_type":"box","text":"D An obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":511,"box":{"x":117,"y":281,"width":751,"height":12}},{"id":"de35cf01-36c3-4f76-94ac-9dcf9ee3d6fb","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are","page_number":511,"box":{"x":226,"y":296,"width":650,"height":12}},{"id":"24c184cf-ce3e-4823-bc99-af606b16678c","block_type":"box","text":"not made on the date due, unless S&P believes that such payments will be made within","page_number":511,"box":{"x":226,"y":312,"width":655,"height":12}},{"id":"219e296a-f6f9-400d-bb17-1d53bfb9bdd5","block_type":"box","text":"five business days in the absence of a stated grace period or within the earlier of the","page_number":511,"box":{"x":225,"y":327,"width":632,"height":12}},{"id":"84c1212a-9ac9-4354-8a4d-0a6eb111716b","block_type":"box","text":"stated grace period or 30 calendar days. The ‘D’ rating also will be used upon the filing","page_number":511,"box":{"x":226,"y":343,"width":647,"height":12}},{"id":"b7a2f605-6010-4e9e-931e-746fb7ae7e47","block_type":"box","text":"of a bankruptcy petition or the taking of similar action and where default on an obligation","page_number":511,"box":{"x":226,"y":358,"width":659,"height":12}},{"id":"94a90991-eacd-4c27-9b3a-4535a3c4c10d","block_type":"box","text":"is a virtual certainty, for example due to automatic stay provisions. A rating on an","page_number":511,"box":{"x":226,"y":374,"width":605,"height":12}},{"id":"9bd28019-b187-4412-b5a0-27714411af6b","block_type":"box","text":"obligation is lowered to ‘D’ if it is subject to a distressed debt restructuring.","page_number":511,"box":{"x":226,"y":389,"width":555,"height":12}},{"id":"a93f4e77-1ee3-4d01-8d90-22af987121f5","block_type":"box","text":"* Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing","page_number":511,"box":{"x":143,"y":420,"width":705,"height":9}},{"id":"2e0e7b4e-0025-4850-b635-87d35e9f4661","block_type":"box","text":"within the rating categories.","page_number":511,"box":{"x":170,"y":433,"width":162,"height":9}},{"id":"6b859121-7a0d-413d-9956-8c2ddeff0445","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":511,"box":{"x":116,"y":462,"width":263,"height":12}},{"id":"f3552689-4678-44ba-b303-1af8c8430600","block_type":"box","text":"A-1 A short-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s","page_number":511,"box":{"x":116,"y":493,"width":765,"height":12}},{"id":"a87fa741-750e-4a6b-9077-f9dcc8938d2c","block_type":"box","text":"capacity to meet its financial commitments on the obligation is strong. Within this","page_number":511,"box":{"x":226,"y":508,"width":603,"height":12}},{"id":"3a40413f-c82d-4c41-8f8f-6335e2a8097f","block_type":"box","text":"category, certain obligations are designated with a plus sign (+). This indicates that the","page_number":511,"box":{"x":226,"y":524,"width":648,"height":12}},{"id":"8fd684e9-6e2e-4829-b9c4-4831d2bab7b7","block_type":"box","text":"obligor’s capacity to meet its financial commitments on these obligations is extremely","page_number":511,"box":{"x":226,"y":539,"width":635,"height":12}},{"id":"cd091977-544f-4619-87ed-fa3dda5798ff","block_type":"box","text":"strong.","page_number":511,"box":{"x":226,"y":555,"width":55,"height":12}},{"id":"53825b5b-1669-4570-8962-fa8dc5f70aef","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects","page_number":511,"box":{"x":116,"y":578,"width":760,"height":12}},{"id":"b4a44c88-dd36-48fb-91c3-e9f37a98dd91","block_type":"box","text":"of changes in circumstances and economic conditions than obligations in higher rating","page_number":511,"box":{"x":226,"y":593,"width":644,"height":13}},{"id":"e0d10dfc-f153-4d30-aced-501358d1ba75","block_type":"box","text":"categories. However, the obligor’s capacity to meet its financial commitments on the","page_number":511,"box":{"x":226,"y":609,"width":629,"height":12}},{"id":"1554d472-6d43-4371-916f-9dac365cdd78","block_type":"box","text":"obligation is satisfactory.","page_number":511,"box":{"x":226,"y":624,"width":187,"height":13}},{"id":"379ad032-2c94-4f3e-9ea3-6cccb55bda85","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However,","page_number":511,"box":{"x":116,"y":648,"width":750,"height":12}},{"id":"e613cede-3628-45fb-9dd2-ebd06ad88201","block_type":"box","text":"adverse economic conditions or changing circumstances are more likely to weaken an","page_number":511,"box":{"x":226,"y":663,"width":639,"height":12}},{"id":"53cf9d37-071d-40ca-9362-04ad98658788","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation.","page_number":511,"box":{"x":226,"y":679,"width":513,"height":12}},{"id":"aa49e8fa-8eeb-4fe9-832f-2088ca012b3a","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant","page_number":511,"box":{"x":117,"y":702,"width":681,"height":12}},{"id":"a1e89d5a-0c3e-4dde-b369-ec8d05c1af67","block_type":"box","text":"speculative characteristics. The obligor currently has the capacity to meet its financial","page_number":511,"box":{"x":226,"y":717,"width":632,"height":13}},{"id":"dcfceb2b-30ad-47e8-adc5-1b7bfbeed1ac","block_type":"box","text":"commitments; however, it faces major ongoing uncertainties that could lead to the","page_number":511,"box":{"x":226,"y":733,"width":607,"height":12}},{"id":"3ecf9668-837c-4f6d-8947-7599926e5d2a","block_type":"box","text":"obligor’s inadequate capacity to meet its financial commitments.","page_number":511,"box":{"x":226,"y":748,"width":473,"height":13}},{"id":"f502567c-9f0a-4e1a-b267-44025dc9bdb0","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent","page_number":511,"box":{"x":117,"y":772,"width":763,"height":12}},{"id":"e5bf4b08-5744-43cb-81bc-d1720170739d","block_type":"box","text":"upon favorable business, financial, and economic conditions for the obligor to meet its","page_number":511,"box":{"x":226,"y":787,"width":636,"height":12}},{"id":"0d9a1bbd-2324-402a-b737-ec425a4571bb","block_type":"box","text":"financial commitments on the obligation.","page_number":511,"box":{"x":225,"y":803,"width":298,"height":12}},{"id":"c4d0fa5e-f9db-4d8a-8e85-13eaa1fd7bf1","block_type":"box","text":"A-6","page_number":511,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"afebf190-b0f5-48a6-9335-461a80b9f1bc","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":511,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"7f329960-fd6a-45f9-9cbb-cc5c4d04ece6","block_type":"box","text":"D A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For","page_number":512,"box":{"x":117,"y":87,"width":739,"height":12}},{"id":"020bb596-2821-41bd-b0e7-acea029fe026","block_type":"box","text":"non-hybrid capital instruments, the ‘D’ rating category is used when payments on an","page_number":512,"box":{"x":226,"y":102,"width":629,"height":13}},{"id":"3f5c691e-7b6a-4425-a238-8fabf2085f32","block_type":"box","text":"obligation are not made on the date due, unless S&P believes that such payments will","page_number":512,"box":{"x":226,"y":118,"width":643,"height":12}},{"id":"944c47a4-4770-48ef-b700-2d858b532283","block_type":"box","text":"be made within any stated grace period. However, any stated grace period longer than","page_number":512,"box":{"x":226,"y":134,"width":648,"height":12}},{"id":"411ab874-c9b6-476c-85b7-b144b9e51bcb","block_type":"box","text":"five business days will be treated as five business days. The ‘D’ rating also will be used","page_number":512,"box":{"x":225,"y":149,"width":653,"height":12}},{"id":"06503d41-5b09-4137-aab5-69eb98c3d811","block_type":"box","text":"upon the filing of a bankruptcy petition or the taking of a similar action and where default","page_number":512,"box":{"x":226,"y":165,"width":659,"height":12}},{"id":"0badc6c2-1690-4b0f-9c0b-7c3aeb08e33e","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions. A","page_number":512,"box":{"x":226,"y":180,"width":635,"height":12}},{"id":"2ba40643-b23b-4292-a31f-0161f219978e","block_type":"box","text":"rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt restructuring.","page_number":512,"box":{"x":226,"y":196,"width":648,"height":12}},{"id":"12a3293a-0111-4bf0-9237-b0f521cca46f","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":512,"box":{"x":117,"y":227,"width":456,"height":12}},{"id":"e62a2021-c702-4777-9137-ed8233d4511b","block_type":"box","text":"An S&P U.S. municipal note rating reflects S&P’s opinion about the liquidity factors and market access","page_number":512,"box":{"x":116,"y":258,"width":766,"height":12}},{"id":"e3f116e9-5fd2-4b20-9ed1-53717ce4ea00","block_type":"box","text":"risks unique to the notes. Notes due in three years or less will likely receive a note rating. Notes with","page_number":512,"box":{"x":117,"y":273,"width":748,"height":12}},{"id":"ac2f14e9-2ce6-4ea2-92e8-4918a1561140","block_type":"box","text":"an original maturity of more than three years will most likely receive a long-term debt rating. In","page_number":512,"box":{"x":116,"y":289,"width":703,"height":12}},{"id":"35b73f52-8d6d-4cdc-992c-c8c374677912","block_type":"box","text":"determining which type of rating, if any, to assign, S&P’s analysis will review the following","page_number":512,"box":{"x":116,"y":304,"width":668,"height":12}},{"id":"1af45acc-dc76-412e-848e-e3c8c1e1d3fb","block_type":"box","text":"considerations:","page_number":512,"box":{"x":116,"y":320,"width":118,"height":9}},{"id":"923033d7-4e93-4530-9df9-d362796c1116","block_type":"box","text":"• Amortization schedule — the larger the final maturity relative to other maturities, the more likely it","page_number":512,"box":{"x":125,"y":351,"width":750,"height":12}},{"id":"2c779117-76f2-44a5-8331-c20761303da1","block_type":"box","text":"will be treated as a note; and","page_number":512,"box":{"x":149,"y":366,"width":220,"height":11}},{"id":"15d36a4f-ae94-4b17-bbb7-6037ca8d9d38","block_type":"box","text":"• Source of payment — the more dependent the issue is on the market for its refinancing, the more","page_number":512,"box":{"x":125,"y":389,"width":753,"height":12}},{"id":"13590d7f-937f-4e5a-8265-e3ab937ac8af","block_type":"box","text":"likely it will be treated as a note.","page_number":512,"box":{"x":150,"y":405,"width":242,"height":12}},{"id":"0e1ccb73-0140-4da0-9e30-094fd06148a4","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":512,"box":{"x":116,"y":436,"width":470,"height":12}},{"id":"7ad51619-0810-4c4f-8594-d27d067f1dfe","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very","page_number":512,"box":{"x":116,"y":467,"width":739,"height":12}},{"id":"23e4a4cd-73ca-4fe5-912a-39a2c4570f94","block_type":"box","text":"strong capacity to pay debt service is given a plus (+) designation.","page_number":512,"box":{"x":226,"y":482,"width":496,"height":12}},{"id":"f4a76e30-80b5-48a7-9e59-806d90a78dc2","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse","page_number":512,"box":{"x":116,"y":506,"width":741,"height":12}},{"id":"d7e1d777-bd40-452d-91f6-a4cfb960bddf","block_type":"box","text":"financial and economic changes over the term of the notes.","page_number":512,"box":{"x":225,"y":521,"width":446,"height":12}},{"id":"4fa71e49-5905-442c-8f56-455c390100e7","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":512,"box":{"x":116,"y":544,"width":482,"height":12}},{"id":"ba4e180b-ba7d-421d-b1c2-89278bf04201","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":512,"box":{"x":117,"y":568,"width":750,"height":12}},{"id":"ed5274de-7e0c-452e-9ede-e1c65a3235b7","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and","page_number":512,"box":{"x":226,"y":583,"width":620,"height":12}},{"id":"3abcc93f-4b0f-4990-b481-c957ea0e69ae","block_type":"box","text":"where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":512,"box":{"x":225,"y":599,"width":640,"height":12}},{"id":"bf091b93-917c-4564-a8c8-40fc46371f53","block_type":"box","text":"provisions.","page_number":512,"box":{"x":226,"y":614,"width":84,"height":12}},{"id":"4b9a86d5-aec0-4d82-a7fa-366a5ce16756","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch’s”) Credit Ratings Scales","page_number":512,"box":{"x":117,"y":645,"width":498,"height":12}},{"id":"6c84701c-3f09-4930-bf16-e8058151368d","block_type":"box","text":"Fitch Ratings publishes opinions on a variety of scales. The most common of these are credit ratings,","page_number":512,"box":{"x":117,"y":676,"width":750,"height":12}},{"id":"b1176fb0-026f-4481-b16e-714109647ebc","block_type":"box","text":"but the agency also publishes ratings, scores and other relative opinions relating to financial or","page_number":512,"box":{"x":117,"y":692,"width":701,"height":12}},{"id":"83171d05-0620-4ebd-ae3b-e9d287f7baf8","block_type":"box","text":"operational strength. For example, Fitch also provides specialized ratings of servicers of residential","page_number":512,"box":{"x":116,"y":707,"width":734,"height":12}},{"id":"e5f22ca4-3267-4d84-b7cf-aaaa0499b361","block_type":"box","text":"and commercial mortgages, asset managers and funds. In each case, users should refer to the","page_number":512,"box":{"x":116,"y":723,"width":706,"height":12}},{"id":"2d477662-42d2-4d65-ac70-5089641dd52e","block_type":"box","text":"definitions of each individual scale for guidance on the dimensions of risk covered in each assessment.","page_number":512,"box":{"x":116,"y":738,"width":763,"height":12}},{"id":"ec413d64-dc8d-4342-8aa2-ea08328f4094","block_type":"box","text":"Fitch’s credit ratings relating to issuers are an opinion on the relative ability of an entity to meet","page_number":512,"box":{"x":117,"y":769,"width":702,"height":12}},{"id":"36b7b0e3-fa13-49d1-b344-fc06d3642452","block_type":"box","text":"financial commitments, such as interest, preferred dividends, repayment of principal, insurance claims","page_number":512,"box":{"x":116,"y":785,"width":756,"height":12}},{"id":"a98b4aef-b7ff-4288-826b-e745ff4f9939","block_type":"box","text":"or counterparty obligations. Credit ratings relating to securities and obligations of an issuer can include","page_number":512,"box":{"x":116,"y":800,"width":761,"height":12}},{"id":"b91d9dc4-a87c-49c2-800f-c6b5a2d8e3d7","block_type":"box","text":"a recovery expectation. Credit ratings are used by investors as indications of the likelihood of receiving","page_number":512,"box":{"x":116,"y":816,"width":761,"height":12}},{"id":"4993509b-ca22-45c6-b717-54298d627ac7","block_type":"box","text":"the money owed to them in accordance with the terms on which they invested. The agency’s credit","page_number":512,"box":{"x":116,"y":831,"width":738,"height":12}},{"id":"1719e287-8afa-4c53-88f2-55d7a8a0c133","block_type":"box","text":"ratings cover the global spectrum of corporate, sovereign financial, bank, insurance, and public finance","page_number":512,"box":{"x":117,"y":847,"width":768,"height":12}},{"id":"35a083a6-f2bb-472f-b773-1007061748e7","block_type":"box","text":"entities (including supranational and sub-national entities) and the securities or other obligations they","page_number":512,"box":{"x":116,"y":862,"width":754,"height":12}},{"id":"fd7b3fbf-2959-4e63-a90b-702f30f31112","block_type":"box","text":"issue, as well as structured finance securities backed by receivables or other financial assets.","page_number":512,"box":{"x":117,"y":878,"width":698,"height":12}},{"id":"30ef092d-92ad-4960-839e-a507ac8cc461","block_type":"box","text":"A-7","page_number":512,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"f5810620-3e7b-420d-89fe-3aa529087630","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":512,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"992a3d40-dfae-44bc-a067-27af2413f6b0","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as","page_number":513,"box":{"x":116,"y":87,"width":723,"height":12}},{"id":"89b8c1fb-b4f4-4834-8db2-eb721c722995","block_type":"box","text":"shorthand to describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative","page_number":513,"box":{"x":116,"y":102,"width":737,"height":13}},{"id":"3e330c62-f6ac-44d2-83f4-6fbfab0769a6","block_type":"box","text":"grade). The terms investment grade and speculative grade are market conventions and do not imply","page_number":513,"box":{"x":116,"y":118,"width":749,"height":12}},{"id":"ad9181d9-2a71-4577-8f54-e563d9b60850","block_type":"box","text":"any recommendation or endorsement of a specific security for investment purposes. Investment grade","page_number":513,"box":{"x":116,"y":134,"width":764,"height":12}},{"id":"30e45de1-1e73-4970-bdb3-a050d5c49577","block_type":"box","text":"categories indicate relatively low to moderate credit risk, while ratings in the speculative categories","page_number":513,"box":{"x":116,"y":149,"width":737,"height":12}},{"id":"b9ff3922-8196-4531-bdeb-1953d85989d9","block_type":"box","text":"either signal a higher level of credit risk or that a default has already occurred.","page_number":513,"box":{"x":116,"y":165,"width":584,"height":12}},{"id":"0c2decb6-6a88-4811-b599-b6c141d5ae2d","block_type":"box","text":"For the convenience of investors, Fitch may also include issues relating to a rated issuer that are not","page_number":513,"box":{"x":117,"y":196,"width":750,"height":12}},{"id":"90bc7e80-6b2f-4fd8-bc95-f6d81e5f44d6","block_type":"box","text":"and have not been rated on its web page. Such issues are also denoted as ‘NR’.","page_number":513,"box":{"x":116,"y":211,"width":603,"height":12}},{"id":"017227ce-0a56-4d81-a7f9-c297c02430cf","block_type":"box","text":"Credit ratings express risk in relative rank order, which is to say they are ordinal measures of credit risk","page_number":513,"box":{"x":117,"y":242,"width":770,"height":12}},{"id":"b472046f-f1e1-4cda-a227-a6f12fceadee","block_type":"box","text":"and are not predictive of a specific frequency of default or loss. For information about the historical","page_number":513,"box":{"x":116,"y":258,"width":735,"height":12}},{"id":"2149c11b-a25b-4ab8-a487-0ccc33ac4c04","block_type":"box","text":"performance of ratings please refer to Fitch’s Ratings Transition and Default studies which detail the","page_number":513,"box":{"x":117,"y":273,"width":747,"height":12}},{"id":"8dffb139-b70d-43a2-9f7a-68cad3d0341d","block_type":"box","text":"historical default rates and their meaning. The European Securities and Markets Authority also","page_number":513,"box":{"x":117,"y":289,"width":705,"height":12}},{"id":"b4a15198-e533-4b54-bcfa-9ad838104666","block_type":"box","text":"maintains a central repository of historical default rates.","page_number":513,"box":{"x":117,"y":304,"width":415,"height":12}},{"id":"d76d8c1d-5039-4f2d-b035-ec0c7d85cde0","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not","page_number":513,"box":{"x":117,"y":335,"width":756,"height":12}},{"id":"c2d73b8e-e14b-4514-99c6-47bc06e20d86","block_type":"box","text":"deal with the risk of a market value loss on a rated security due to changes in interest rates, liquidity","page_number":513,"box":{"x":116,"y":351,"width":747,"height":12}},{"id":"dc11d881-3cb9-4fbd-b887-6712cce0d93f","block_type":"box","text":"and other market considerations. However, in terms of payment obligation on the rated liability, market","page_number":513,"box":{"x":116,"y":366,"width":765,"height":12}},{"id":"0bad24f2-5904-4e26-8da3-2cd4b344984c","block_type":"box","text":"risk may be considered to the extent that it influences the ability of an issuer to pay upon a","page_number":513,"box":{"x":117,"y":382,"width":674,"height":12}},{"id":"952f5a6f-0ebb-4273-81e2-91c17b8986c8","block_type":"box","text":"commitment.","page_number":513,"box":{"x":116,"y":397,"width":101,"height":10}},{"id":"7f12f58e-03fd-4b0c-be6e-0bb419901de1","block_type":"box","text":"Ratings nonetheless do not reflect market risk to the extent that they influence the size or other","page_number":513,"box":{"x":117,"y":428,"width":709,"height":12}},{"id":"6209a044-49b3-4261-a61b-e22d0ae5c581","block_type":"box","text":"conditionality of the obligation to pay upon a commitment (for example, in the case of index-linked","page_number":513,"box":{"x":116,"y":444,"width":731,"height":12}},{"id":"391f7dfa-c03f-4b70-910e-9b18b68e484b","block_type":"box","text":"bonds).","page_number":513,"box":{"x":117,"y":459,"width":59,"height":12}},{"id":"5a7a4c98-9acd-41ce-a93a-9667a1240bf3","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency","page_number":513,"box":{"x":117,"y":490,"width":725,"height":12}},{"id":"139745c2-7855-4aed-812b-d2a63a1afb1a","block_type":"box","text":"typically rates to the likelihood of non-payment or default in accordance with the terms of that","page_number":513,"box":{"x":116,"y":506,"width":695,"height":12}},{"id":"31c2f721-42d3-4d66-a304-6dc45efa27c6","block_type":"box","text":"instrument’s documentation. In limited cases, Fitch may include additional considerations (i.e. rate to a","page_number":513,"box":{"x":117,"y":521,"width":764,"height":12}},{"id":"0afb7aa1-bcc0-465c-8313-b5a272e78ede","block_type":"box","text":"higher or lower standard than that implied in the obligation’s documentation).","page_number":513,"box":{"x":117,"y":537,"width":573,"height":12}},{"id":"dc2a77f0-e8cf-4db5-9b55-3144c5246fd3","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or","page_number":513,"box":{"x":116,"y":568,"width":719,"height":12}},{"id":"2b7c163a-76c6-4de2-9d5d-1f6cb71122e7","block_type":"box","text":"certain note issuance programs or for private ratings. In this case the rating is not published, but only","page_number":513,"box":{"x":116,"y":583,"width":753,"height":12}},{"id":"a8306aa5-dbc6-4223-89e7-62d35caf0317","block_type":"box","text":"provided to the issuer or its agents in the form of a rating letter.","page_number":513,"box":{"x":117,"y":599,"width":472,"height":12}},{"id":"18942523-f3e9-455a-9462-56f95c546d96","block_type":"box","text":"The primary credit rating scales may also be used to provide ratings for a more narrow scope,","page_number":513,"box":{"x":116,"y":630,"width":702,"height":12}},{"id":"27c109ae-e2d5-4ffe-8b48-ba85b1f67809","block_type":"box","text":"including interest strips and return of principal or in other forms of opinions such as credit opinions or","page_number":513,"box":{"x":117,"y":645,"width":751,"height":12}},{"id":"78bac27d-235f-44b0-bfae-a96fe6a7cf33","block_type":"box","text":"rating assessment services. Credit opinions are either a notch- or category-specific view using the","page_number":513,"box":{"x":117,"y":661,"width":726,"height":12}},{"id":"279be1f0-96ad-4a7c-b4b1-fb0efd3b017a","block_type":"box","text":"primary rating scale and omit one or more characteristics of a full rating or meet them to a different","page_number":513,"box":{"x":117,"y":676,"width":731,"height":12}},{"id":"1d661301-764a-435f-980c-2a3d9145aaab","block_type":"box","text":"standard. Credit opinions will be indicated using a lower case letter symbol combined with either an ‘*’","page_number":513,"box":{"x":116,"y":692,"width":754,"height":12}},{"id":"12314357-3c67-4bd6-aa32-43135c6b80da","block_type":"box","text":"(e.g. ‘bbb+*’) or (cat) suffix to denote the opinion status. Credit opinions will be point-in-time typically","page_number":513,"box":{"x":117,"y":707,"width":743,"height":12}},{"id":"f1daf7bc-c531-4f00-b372-7d8767d8f38b","block_type":"box","text":"but may be monitored if the analytical group believes information will be sufficiently available. Rating","page_number":513,"box":{"x":117,"y":723,"width":742,"height":12}},{"id":"17606e6f-34b9-4af0-be5d-05045ac8af9e","block_type":"box","text":"assessment services are a notch-specific view using the primary rating scale of how an existing or","page_number":513,"box":{"x":116,"y":738,"width":729,"height":12}},{"id":"e069ccab-19cc-4ecb-9ef6-f277f967e8b8","block_type":"box","text":"potential rating may be changed by a given set of hypothetical circumstances. While credit opinions","page_number":513,"box":{"x":117,"y":754,"width":736,"height":12}},{"id":"b8e511f5-21d3-4b49-9822-43e0ce3e547f","block_type":"box","text":"and rating assessment services are point-in-time and are not monitored, they may have a directional","page_number":513,"box":{"x":116,"y":769,"width":745,"height":12}},{"id":"264eac98-a3db-40bf-9949-759a58e956f8","block_type":"box","text":"watch or outlook assigned, which can signify the trajectory of the credit profile.","page_number":513,"box":{"x":116,"y":785,"width":579,"height":12}},{"id":"77925d01-b1c0-4025-b830-da6640458dc5","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":513,"box":{"x":117,"y":816,"width":629,"height":12}},{"id":"95b94dde-faba-47f7-ae0f-a400b50b2e55","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative","page_number":513,"box":{"x":117,"y":847,"width":682,"height":12}},{"id":"0ff7cc8f-ff67-41d2-8497-780c91bbe797","block_type":"box","text":"vulnerability to default on an ordinal scale. In addition, for financial obligations in corporate finance, a","page_number":513,"box":{"x":116,"y":862,"width":752,"height":12}},{"id":"31247e05-7733-4688-98bf-1c284c7efe2e","block_type":"box","text":"measure of recovery given default on that liability is also included in the rating assessment. This","page_number":513,"box":{"x":117,"y":878,"width":716,"height":12}},{"id":"1ea81c08-64b8-42e0-9d5d-a59b8568c767","block_type":"box","text":"A-8","page_number":513,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"3d98c80f-ee97-466b-be49-ceb21dfb994f","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":513,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d0b656d7-4cf9-4d06-97a6-19644816eaeb","block_type":"box","text":"notably applies to covered bonds ratings, which incorporate both an indication of the probability of","page_number":514,"box":{"x":117,"y":87,"width":729,"height":12}},{"id":"5b0beac0-9f3c-4c41-9be0-d9b9ee2355ae","block_type":"box","text":"default and of the recovery given a default of this debt instrument. On the contrary, Ratings of","page_number":514,"box":{"x":116,"y":102,"width":699,"height":13}},{"id":"ecfe1109-88bc-4597-baad-13d37d822683","block_type":"box","text":"debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":514,"box":{"x":116,"y":118,"width":642,"height":12}},{"id":"c12a51c3-18c8-4373-9272-aeac9b069b23","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average","page_number":514,"box":{"x":116,"y":149,"width":750,"height":12}},{"id":"c303aa75-5a57-423a-a429-81daee280a54","block_type":"box","text":"recovery. Individual obligations can be assigned ratings higher, lower, or the same as that entity’s","page_number":514,"box":{"x":117,"y":165,"width":728,"height":12}},{"id":"5b35343f-9562-4d54-859f-770be6fed8a9","block_type":"box","text":"issuer rating or issuer default rating (“IDR”), based on their relative ranking, relative vulnerability to","page_number":514,"box":{"x":117,"y":180,"width":733,"height":12}},{"id":"7cb9a205-b664-484d-818a-210352f66b73","block_type":"box","text":"default or based on explicit Recovery Ratings.","page_number":514,"box":{"x":116,"y":196,"width":347,"height":12}},{"id":"5b415e44-44a3-4fa3-8271-f40b156d322e","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower,","page_number":514,"box":{"x":116,"y":227,"width":756,"height":12}},{"id":"93cf7cf8-9fd1-4166-a466-16d98f9cf860","block_type":"box","text":"or the same as that entity’s issuer rating or IDR, except DIP obligation ratings that are not based off an","page_number":514,"box":{"x":116,"y":242,"width":766,"height":12}},{"id":"aa8b139d-933c-4657-82d3-bc7c1e2479ab","block_type":"box","text":"IDR. At the lower end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to","page_number":514,"box":{"x":117,"y":258,"width":756,"height":12}},{"id":"3bfbd044-b715-49ce-ac26-748cf04d678f","block_type":"box","text":"complement issuer and obligation ratings.","page_number":514,"box":{"x":116,"y":273,"width":315,"height":12}},{"id":"8466c065-0e18-4592-8201-d6872027410f","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":514,"box":{"x":117,"y":304,"width":412,"height":12}},{"id":"021ced9a-0bf4-4d1f-b0c2-adf70302c80a","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of credit risk. They","page_number":514,"box":{"x":116,"y":335,"width":753,"height":12}},{"id":"104ca100-ee7d-4986-a25d-3898b23d011b","block_type":"box","text":"are assigned only in cases of exceptionally strong capacity for payment of financial","page_number":514,"box":{"x":226,"y":351,"width":619,"height":12}},{"id":"ad522456-c8a7-4dba-a65c-2394beb14647","block_type":"box","text":"commitments. This capacity is highly unlikely to be adversely affected by foreseeable","page_number":514,"box":{"x":226,"y":366,"width":636,"height":12}},{"id":"187eceda-ab11-4515-b9c7-5918f510dedf","block_type":"box","text":"events.","page_number":514,"box":{"x":226,"y":382,"width":58,"height":9}},{"id":"36b86df1-dbe9-4c67-be8e-9005cadf88e2","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low credit risk. They","page_number":514,"box":{"x":116,"y":405,"width":753,"height":12}},{"id":"3294143f-1604-4a25-bb4b-d7fe00eb3b38","block_type":"box","text":"indicate very strong capacity for payment of financial commitments. This capacity is not","page_number":514,"box":{"x":226,"y":420,"width":652,"height":12}},{"id":"459e2448-75fe-435e-9cfc-b6d93c298aaf","block_type":"box","text":"significantly vulnerable to foreseeable events.","page_number":514,"box":{"x":226,"y":436,"width":343,"height":12}},{"id":"b5bc4c4d-b40a-4a51-9c2a-a5252f7759e9","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low credit risk. The capacity for","page_number":514,"box":{"x":116,"y":459,"width":748,"height":12}},{"id":"9187155a-0ab5-479a-b2ce-fa5cf9ad584b","block_type":"box","text":"payment of financial commitments is considered strong. This capacity may,","page_number":514,"box":{"x":226,"y":475,"width":562,"height":12}},{"id":"d7b8ec99-cab0-4b62-8bb0-2e73b1869e92","block_type":"box","text":"nevertheless, be more vulnerable to adverse business or economic conditions than is","page_number":514,"box":{"x":226,"y":490,"width":638,"height":11}},{"id":"3129bd61-0686-4c2f-8243-431c4f22e18e","block_type":"box","text":"the case for higher ratings.","page_number":514,"box":{"x":225,"y":506,"width":204,"height":12}},{"id":"deb9b539-3a96-4a04-900f-a066a5a1cc3e","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of credit risk are currently","page_number":514,"box":{"x":117,"y":529,"width":755,"height":12}},{"id":"aa002656-8808-4156-8e7c-baef2faa1d37","block_type":"box","text":"low. 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The modifiers “+” or “-” may be appended to a rating","page_number":514,"box":{"x":116,"y":769,"width":759,"height":12}},{"id":"3b2fc6cb-22d0-4b37-96b9-36cb3d550ca2","block_type":"box","text":"to denote relative status within major rating categories.","page_number":514,"box":{"x":116,"y":785,"width":405,"height":12}},{"id":"25f04454-7e0f-49cc-b9f8-8f67fd21fe60","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a","page_number":514,"box":{"x":117,"y":816,"width":750,"height":12}},{"id":"9a52d54e-181c-484f-a6cd-a6a6368c9008","block_type":"box","text":"rating level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For","page_number":514,"box":{"x":117,"y":831,"width":745,"height":12}},{"id":"0a0c61f7-b36d-47b9-a863-26befb9dbee7","block_type":"box","text":"the short-term rating category of ‘F1’, a ‘+’ may be appended.","page_number":514,"box":{"x":116,"y":847,"width":461,"height":12}},{"id":"005c2417-1c4d-49c8-9462-2506bf0bb8c3","block_type":"box","text":"A-9","page_number":514,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"ba7c93dc-3a50-44b3-9960-86bfb52dc83a","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":514,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c761a30d-b7ff-49a0-a55b-b1832af29dac","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":515,"box":{"x":117,"y":87,"width":634,"height":12}},{"id":"ee65dd1b-4d99-4e61-a2c4-e58a6d348f66","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of","page_number":515,"box":{"x":116,"y":118,"width":764,"height":12}},{"id":"89bff70e-cd96-4886-a7ea-d058dc7808a5","block_type":"box","text":"the rated entity and relates to the capacity to meet financial obligations in accordance with the","page_number":515,"box":{"x":116,"y":134,"width":701,"height":12}},{"id":"c7872bd7-8dcd-436b-bad4-b62da322409d","block_type":"box","text":"documentation governing the relevant obligation. Short-term deposit ratings may be adjusted for loss","page_number":515,"box":{"x":116,"y":149,"width":753,"height":12}},{"id":"a7127b96-7713-409d-b0ca-55f0f71d1e84","block_type":"box","text":"severity. Short-term ratings are assigned to obligations whose initial maturity is viewed as “short term”","page_number":515,"box":{"x":116,"y":165,"width":760,"height":12}},{"id":"6bc1e4d8-5c35-4709-ad2b-d136373a5207","block_type":"box","text":"based on market convention. Typically, this means up to 13 months for corporate, sovereign, and","page_number":515,"box":{"x":117,"y":180,"width":726,"height":12}},{"id":"b8f82d88-e427-405c-b361-e57150eee379","block_type":"box","text":"structured obligations and up to 36 months for obligations in U.S. public finance markets.","page_number":515,"box":{"x":116,"y":196,"width":664,"height":12}},{"id":"0e9f201b-5aeb-4040-98f7-fb97d810b4ab","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":515,"box":{"x":117,"y":227,"width":289,"height":12}},{"id":"4fb1b7d5-821b-4de6-8825-fc6bd77ee745","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely","page_number":515,"box":{"x":117,"y":258,"width":746,"height":12}},{"id":"988473bb-93db-484f-834e-cce05ade6bd4","block_type":"box","text":"payment of financial commitments; may have an added “+” to denote any exceptionally","page_number":515,"box":{"x":226,"y":273,"width":650,"height":12}},{"id":"0cc1932c-fb25-411f-9edd-16e4a381932e","block_type":"box","text":"strong credit feature.","page_number":515,"box":{"x":226,"y":289,"width":158,"height":12}},{"id":"1e8a6fc9-9e58-4403-b1e7-6913f57921b1","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":515,"box":{"x":117,"y":312,"width":757,"height":12}},{"id":"af20f207-7c64-481d-a4cd-cbe6fb978c83","block_type":"box","text":"commitments.","page_number":515,"box":{"x":226,"y":327,"width":109,"height":10}},{"id":"8efb6dbd-4362-473d-9026-1bb167809d80","block_type":"box","text":"F3 Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial","page_number":515,"box":{"x":117,"y":351,"width":732,"height":12}},{"id":"dcb37666-d8e0-4af6-8f18-4051d7ce9580","block_type":"box","text":"commitments is adequate.","page_number":515,"box":{"x":226,"y":366,"width":200,"height":12}},{"id":"314188ab-0939-4d83-ad0b-ac07535c9301","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":515,"box":{"x":117,"y":389,"width":758,"height":12}},{"id":"3a95c92b-64f6-45fd-b62d-dd0cb0ad7d9f","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial","page_number":515,"box":{"x":226,"y":405,"width":638,"height":12}},{"id":"316fdf4e-2024-429e-a608-9dccca5d4e82","block_type":"box","text":"and economic conditions.","page_number":515,"box":{"x":226,"y":420,"width":194,"height":10}},{"id":"37e8c939-09f2-4170-a219-d94727096a66","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":515,"box":{"x":117,"y":444,"width":541,"height":12}},{"id":"6c59a2d1-784b-42aa-932d-d31d784231c3","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":515,"box":{"x":117,"y":467,"width":756,"height":12}},{"id":"2379c54c-f2bd-4d3d-8968-847b3e911bc7","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically","page_number":515,"box":{"x":226,"y":482,"width":598,"height":12}},{"id":"401190fb-bf48-44ba-8464-0e48ce0618b6","block_type":"box","text":"applicable to entity ratings only.","page_number":515,"box":{"x":226,"y":498,"width":239,"height":12}},{"id":"8e857601-9f6f-40ba-b9a9-f44c1a12c13d","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a short","page_number":515,"box":{"x":117,"y":521,"width":733,"height":12}},{"id":"daec1cb8-b242-4ad0-b687-e70d5877043c","block_type":"box","text":"term obligation.","page_number":515,"box":{"x":225,"y":537,"width":120,"height":12}},{"id":"f03f6172-42c5-46ca-bd0e-ac0727ba3785","block_type":"box","text":"A-10","page_number":515,"box":{"x":482,"y":909,"width":35,"height":9}},{"id":"d450c616-7b5c-44dd-9708-0322bf66568d","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":515,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"7d172770-bdf5-4aac-a3b4-e6a450832ee5","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":516,"box":{"x":380,"y":87,"width":508,"height":12}},{"id":"efb0f512-68d6-4373-9f65-c76218b336fc","block_type":"box","text":"APPENDIX B","page_number":516,"box":{"x":448,"y":118,"width":108,"height":9}},{"id":"3d7cfd05-949f-445c-a7c5-ad6d5e9e7d1d","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":516,"box":{"x":204,"y":146,"width":597,"height":14}},{"id":"fccf8227-704a-4d54-974e-8a314200a8ff","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":516,"box":{"x":229,"y":175,"width":547,"height":13}},{"id":"48e67c49-387d-4aca-9c95-782c53093a03","block_type":"box","text":"Effective Date: January 1, 2025","page_number":516,"box":{"x":383,"y":204,"width":239,"height":12}},{"id":"0fd22595-8493-4b29-9747-d75ab05b64f9","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":516,"box":{"x":116,"y":232,"width":597,"height":13}},{"id":"cf807f2c-5a0b-4f43-a7ec-d9b284a157e5","block_type":"box","text":"‘","page_number":516,"box":{"x":116,"y":261,"width":17,"height":13}},{"id":"48b9b751-cea7-46d2-8028-8e9cf8b06edd","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":516,"box":{"x":134,"y":262,"width":456,"height":13}},{"id":"5d2a44c9-0708-40ff-b3b1-69903809a56a","block_type":"box","text":"È","page_number":516,"box":{"x":116,"y":277,"width":17,"height":14}},{"id":"fd468ba9-c1c3-46f5-ba84-5ae207c124fc","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":516,"box":{"x":134,"y":278,"width":688,"height":14}},{"id":"e3a86dec-e9a8-40d6-bf50-cdff25ccedf3","block_type":"box","text":"‘","page_number":516,"box":{"x":116,"y":294,"width":17,"height":13}},{"id":"7591a9fe-2e9c-4902-b7f2-301fbc453713","block_type":"box","text":"Money Market 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Policy.","page_number":516,"box":{"x":116,"y":386,"width":675,"height":12}},{"id":"213894b3-98e1-4dff-8224-2033224639f4","block_type":"box","text":"Policy / Document Requirements and Statements","page_number":516,"box":{"x":117,"y":414,"width":396,"height":12}},{"id":"01c06401-1ea6-4bd6-9c4e-8aa55b6b3d56","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":516,"box":{"x":116,"y":442,"width":730,"height":12}},{"id":"a02be9d2-73ad-4bfb-b165-71bd36a97f79","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the","page_number":516,"box":{"x":117,"y":457,"width":743,"height":13}},{"id":"b0b40309-6537-4e57-9d9b-451b12d76ca8","block_type":"box","text":"oversight of voting proxies relating to portfolio securities of the Funds, and have determined that it is in","page_number":516,"box":{"x":116,"y":473,"width":765,"height":12}},{"id":"6134cff0-ef6b-409f-9b57-5f985acd1bdb","block_type":"box","text":"the best interests of the Funds and their shareholders to delegate the responsibility to vote proxies to","page_number":516,"box":{"x":116,"y":488,"width":754,"height":13}},{"id":"adc42804-9d33-4fd0-86df-e3dc5ea34c54","block_type":"box","text":"BlackRock, subject to the principles outlined in this Policy, as part of BlackRock’s authority to manage,","page_number":516,"box":{"x":117,"y":504,"width":764,"height":12}},{"id":"57f357cb-ab73-4250-a6e4-46180344de8c","block_type":"box","text":"acquire and dispose of account assets, all as contemplated by the Funds’ respective investment","page_number":516,"box":{"x":116,"y":519,"width":718,"height":13}},{"id":"9470c444-4554-441f-80ec-d53a44c4af6b","block_type":"box","text":"management agreements.","page_number":516,"box":{"x":117,"y":535,"width":200,"height":12}},{"id":"173ee759-730b-4bea-a721-99d84707f327","block_type":"box","text":"BlackRock has adopted the BlackRock Active Investment Stewardship Global Engagement and Voting","page_number":516,"box":{"x":117,"y":563,"width":766,"height":12}},{"id":"1f9180f7-636f-4243-953a-851cfc871b08","block_type":"box","text":"Guidelines (as from time to time amended, the “Guidelines”) governing proxy voting by active and fixed","page_number":516,"box":{"x":117,"y":579,"width":768,"height":12}},{"id":"ec910c4f-a979-426a-a848-4d764e44f9c7","block_type":"box","text":"income index Funds managed by BlackRock. The Guidelines include “climate and decarbonization”","page_number":516,"box":{"x":117,"y":594,"width":741,"height":12}},{"id":"043a899e-ee89-40fc-ae09-2b04f41f265e","block_type":"box","text":"guidelines which apply to the Funds listed in Appendix A, if any.","page_number":516,"box":{"x":116,"y":610,"width":477,"height":12}},{"id":"0589702e-0d97-4463-9ec3-1d98a4d7f325","block_type":"box","text":"BlackRock will cast votes on behalf of each of the Funds covered by this policy on specific proxy","page_number":516,"box":{"x":117,"y":638,"width":719,"height":12}},{"id":"4c861ffd-780f-46a0-9235-20e6cd2c5ba2","block_type":"box","text":"issues in respect of securities held by each such Fund (or may refrain from voting) in accordance with","page_number":516,"box":{"x":117,"y":653,"width":759,"height":12}},{"id":"a8407135-71ad-46d0-9df9-78ed8432d3ae","block_type":"box","text":"the Guidelines.","page_number":516,"box":{"x":116,"y":669,"width":110,"height":9}},{"id":"f5398dca-0a9a-4cef-95c0-97652a17b48d","block_type":"box","text":"Conflicts Management","page_number":516,"box":{"x":116,"y":697,"width":179,"height":12}},{"id":"95502f35-64c5-47fb-9fd1-e0bf2ada6b5f","block_type":"box","text":"BlackRock Active Investment Stewardship (“BAIS”) maintains policies and procedures that seek to","page_number":516,"box":{"x":117,"y":725,"width":729,"height":12}},{"id":"516bb1ae-6ea0-44e1-8164-52104f4b2108","block_type":"box","text":"prevent undue influence on BlackRock’s proxy voting activity and to mitigate material conflicts of","page_number":516,"box":{"x":117,"y":740,"width":714,"height":13}},{"id":"8e0d14bf-f2bf-413e-93a0-a94bcb40a15d","block_type":"box","text":"interest in the exercise of proxy voting responsibilities. Potential material conflicts, and the resultant","page_number":516,"box":{"x":117,"y":756,"width":736,"height":12}},{"id":"72f6e032-f344-4183-b1c0-350d70310464","block_type":"box","text":"potential for undue influence, might be due to a relationship between the investee company (or any","page_number":516,"box":{"x":117,"y":771,"width":734,"height":13}},{"id":"781b3449-be0d-44d8-b9a5-4f354e91e0ff","block_type":"box","text":"shareholder proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates or employees,","page_number":516,"box":{"x":116,"y":787,"width":752,"height":12}},{"id":"d0f1187f-4015-4126-a67f-4940d482cfcc","block_type":"box","text":"or a Fund or a Fund’s affiliates. BlackRock has taken certain steps to mitigate potential conflicts, which","page_number":516,"box":{"x":116,"y":802,"width":761,"height":13}},{"id":"f6df5211-b4b9-4409-b410-a21a672e1834","block_type":"box","text":"are outlined in detail in the Guidelines. 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This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":521,"box":{"x":170,"y":828,"width":676,"height":10}},{"id":"2edd004c-ee65-4b81-8ff3-1c3f5200d6ea","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":521,"box":{"x":171,"y":841,"width":631,"height":9}},{"id":"dc44a60e-4113-4c21-82e3-8584000a57c8","block_type":"box","text":"2","page_number":521,"box":{"x":143,"y":854,"width":4,"height":5}},{"id":"8e4000f3-dc4f-4661-966c-c75542a222fb","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part of a","page_number":521,"box":{"x":171,"y":854,"width":709,"height":9}},{"id":"d06ddb33-68ac-48ea-a2c0-99567e076d81","block_type":"box","text":"strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. 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The money BlackRock manages is not its","page_number":522,"box":{"x":117,"y":118,"width":741,"height":12}},{"id":"3a2e1f4a-1d5e-4438-aa5d-5184575e43f7","block_type":"box","text":"own — it belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio","page_number":522,"box":{"x":116,"y":134,"width":756,"height":12}},{"id":"8931ceaa-c29f-4835-9f22-ce389f3e3992","block_type":"box","text":"construction decisions. As a fiduciary, BlackRock invests on clients’ behalf to help them meet their","page_number":522,"box":{"x":116,"y":149,"width":733,"height":12}},{"id":"b87bf7a2-b689-4a7e-8036-3296f0b5174e","block_type":"box","text":"investment objectives. The firm does this by understanding clients’ long-term investment objectives","page_number":522,"box":{"x":117,"y":165,"width":739,"height":12}},{"id":"d2c0fcc3-533c-414f-ae9f-33b4c5ce0c1e","block_type":"box","text":"and offering choice on how and where they wish to invest their money. BlackRock then helps clients","page_number":522,"box":{"x":116,"y":180,"width":747,"height":12}},{"id":"c1311995-1920-4306-841a-600ada7be7fd","block_type":"box","text":"seek the best risk-adjusted returns based on those choices, underpinning this work with research, data","page_number":522,"box":{"x":116,"y":196,"width":768,"height":12}},{"id":"765e9508-d5de-4208-813f-d9b6e285c095","block_type":"box","text":"and analytics.","page_number":522,"box":{"x":116,"y":211,"width":107,"height":12}},{"id":"c158eefa-9485-4d7e-962a-586348329c7c","block_type":"box","text":"At BlackRock, investment stewardship is core to our role as an asset manager and a fiduciary to our","page_number":522,"box":{"x":116,"y":242,"width":748,"height":12}},{"id":"04b89644-a683-412e-801a-22b815bd9e6a","block_type":"box","text":"clients. As stewards of our clients’ assets, we engage with companies to discuss the corporate","page_number":522,"box":{"x":116,"y":258,"width":706,"height":12}},{"id":"4b96d346-89c2-427a-baaa-b690a091a7dc","block_type":"box","text":"governance and business practices that, in our experience, support companies in delivering durable,","page_number":522,"box":{"x":116,"y":273,"width":751,"height":12}},{"id":"e904bc1f-870e-4562-a1f7-c12b98205d93","block_type":"box","text":"risk-adjusted financial returns over time. We are committed to building strong relationships through","page_number":522,"box":{"x":117,"y":289,"width":736,"height":12}},{"id":"81d3e1de-e3da-4f21-9a8f-65030f004b49","block_type":"box","text":"constructive, ongoing dialogue with the boards and executive management of the companies in which","page_number":522,"box":{"x":116,"y":304,"width":760,"height":12}},{"id":"f2a80430-3e24-4479-aecd-b49e59bb7258","block_type":"box","text":"our clients are invested.","page_number":522,"box":{"x":116,"y":320,"width":182,"height":9}},{"id":"1a517b9d-ad5d-49af-8c33-76b9ab56f103","block_type":"box","text":"About BlackRock Active Investment Stewardship","page_number":522,"box":{"x":303,"y":351,"width":398,"height":11}},{"id":"685bf181-5871-4e17-9bab-f3683db8b297","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management","page_number":522,"box":{"x":117,"y":382,"width":764,"height":12}},{"id":"c24b0ab1-fc14-49ec-a3e2-89df3fd01838","block_type":"box","text":"Group and manages BlackRock’s stewardship engagement and voting on behalf of clients invested in","page_number":522,"box":{"x":117,"y":397,"width":758,"height":12}},{"id":"c12f7d3b-49ec-4155-96cb-76bd5bf22913","block_type":"box","text":"active strategies globally. BAIS is also responsible for engagement with issuers in index fixed income","page_number":522,"box":{"x":116,"y":413,"width":755,"height":12}},{"id":"373819a3-6894-43c6-9984-f3f488f58fba","block_type":"box","text":"strategies, where appropriate. Our activities are informed by these Global Engagement and Voting","page_number":522,"box":{"x":116,"y":428,"width":735,"height":12}},{"id":"2bdf9c60-287a-4e0d-9703-dd66bd58b202","block_type":"box","text":"Guidelines (the “Guidelines”) and insights from active investment analysts and portfolio managers, with","page_number":522,"box":{"x":117,"y":444,"width":768,"height":12}},{"id":"98956903-36eb-426b-9ace-edf83a8b0378","block_type":"box","text":"whom we work closely in engaging companies and voting at shareholder meetings.","page_number":522,"box":{"x":116,"y":459,"width":622,"height":12}},{"id":"0082f32c-7cc8-46a9-b9bf-32f94ea3a5df","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within","page_number":522,"box":{"x":117,"y":490,"width":680,"height":12}},{"id":"cea655f9-d349-4877-9f9f-dc758bac3783","block_type":"box","text":"fundamental active investing.","page_number":522,"box":{"x":116,"y":506,"width":215,"height":12}},{"id":"f2f21ebf-abed-4d9b-85d1-e1db4c4a619c","block_type":"box","text":"3","page_number":522,"box":{"x":333,"y":506,"width":5,"height":6}},{"id":"cf94f65f-a66a-4cc1-958f-98b9feb0581b","block_type":"box","text":"Through direct dialogue with company leadership, we seek to","page_number":522,"box":{"x":339,"y":506,"width":466,"height":12}},{"id":"54db4145-0591-4f7e-8744-d9279962f0cf","block_type":"box","text":"understand their businesses and how they manage risks and opportunities to deliver durable, risk","page_number":522,"box":{"x":117,"y":521,"width":727,"height":12}},{"id":"2121e5f0-88b9-4b0f-bfe7-7f8e92835fdf","block_type":"box","text":"adjusted financial returns. Portfolio managers and stewardship specialists may engage jointly or","page_number":522,"box":{"x":116,"y":537,"width":716,"height":12}},{"id":"432eed4f-8c57-4676-ba4b-0e7f71509954","block_type":"box","text":"independently on material corporate governance matters. Our discussions focus on topics relevant to a","page_number":522,"box":{"x":117,"y":552,"width":769,"height":12}},{"id":"51056c18-94df-433b-ba2c-a9569cb3ccde","block_type":"box","text":"company’s success over time, including governance and leadership, corporate strategy, capital","page_number":522,"box":{"x":116,"y":568,"width":711,"height":12}},{"id":"2c2293f5-e7c2-4217-b3cb-dbed3e641138","block_type":"box","text":"structure and financial performance, operations and material sustainability-related risks, as well as","page_number":522,"box":{"x":116,"y":583,"width":734,"height":12}},{"id":"f629d129-fd25-4f43-8f7d-04872f7578ac","block_type":"box","text":"macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are","page_number":522,"box":{"x":117,"y":599,"width":717,"height":12}},{"id":"4e16115f-1cff-4dbf-a1ee-21f4a2fdef06","block_type":"box","text":"generally supportive of management teams that have a track record of financial value creation. We aim","page_number":522,"box":{"x":116,"y":614,"width":770,"height":12}},{"id":"88006d8e-41b8-45d2-92ac-3e6e44100f69","block_type":"box","text":"to build and maintain strong relationships with company leadership based on open dialogue and","page_number":522,"box":{"x":116,"y":630,"width":717,"height":12}},{"id":"abba6e6c-9117-4118-a218-67f482bcf70e","block_type":"box","text":"mutual respect.","page_number":522,"box":{"x":117,"y":645,"width":118,"height":12}},{"id":"dfb47b59-5eee-483f-b029-448bb07b5bea","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the","page_number":522,"box":{"x":117,"y":676,"width":744,"height":12}},{"id":"5831fd15-4703-4799-a8e9-0c60d88ad8ef","block_type":"box","text":"latitude each portfolio manager has to make independent voting decisions on their holdings. For","page_number":522,"box":{"x":117,"y":692,"width":711,"height":12}},{"id":"efe18569-0a68-4d20-9c3c-447f6ada96ae","block_type":"box","text":"example, BAIS will generally vote the holdings in Systematic Active Equity portfolios in accordance","page_number":522,"box":{"x":116,"y":707,"width":732,"height":12}},{"id":"11702564-e68c-474b-b4ff-79b2f18fcc20","block_type":"box","text":"with these guidelines. We provide voting recommendations to fundamental equity portfolio managers,","page_number":522,"box":{"x":116,"y":723,"width":751,"height":12}},{"id":"57368a8e-af07-4119-9a95-7e52b8046f08","block_type":"box","text":"who may determine to vote differently based on each portfolio’s investment objectives and strategy.","page_number":522,"box":{"x":116,"y":738,"width":737,"height":12}},{"id":"73dea5ed-23e8-4688-82fd-e665c61ddcef","block_type":"box","text":"3","page_number":522,"box":{"x":143,"y":841,"width":4,"height":5}},{"id":"8274f6bc-f3ac-4811-99e3-bf52016b64f4","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":522,"box":{"x":170,"y":841,"width":660,"height":9}},{"id":"72460fa7-03d3-4e2e-838b-e2af51f8fd17","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":522,"box":{"x":170,"y":854,"width":695,"height":9}},{"id":"d839a8ed-8ef9-4d97-b028-cb37e845ab3d","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the effect,","page_number":522,"box":{"x":170,"y":867,"width":707,"height":9}},{"id":"edf3bf16-38d9-4e3c-884b-113b0b480705","block_type":"box","text":"of changing or influencing control of the company.","page_number":522,"box":{"x":170,"y":880,"width":295,"height":9}},{"id":"cec9fb17-3380-47bf-ac80-a0d714ac0c7f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":522,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"c630cdcf-fba1-40a9-b1a0-f85ff60c3352","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":522,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"b96d2c94-cf78-431d-b4e6-a3b0c4bb71bd","block_type":"box","text":"4","page_number":522,"box":{"x":874,"y":909,"width":9,"height":9}},{"id":"58dda861-7183-43d7-8460-1400c9719a78","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":522,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2ce44fce-f2ea-4136-b97a-4ea9fcfefbba","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":523,"box":{"x":116,"y":87,"width":755,"height":12}},{"id":"98441ae5-51ec-4670-9cc9-6f346b776cb6","block_type":"box","text":"management teams and board directors","page_number":523,"box":{"x":117,"y":103,"width":297,"height":12}},{"id":"4e2b85bc-f9d1-4b5c-865a-0888647adebe","block_type":"box","text":"4","page_number":523,"box":{"x":414,"y":103,"width":6,"height":6}},{"id":"deff0ab4-410d-4e22-9552-6b2d0b80fa99","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We","page_number":523,"box":{"x":424,"y":103,"width":461,"height":12}},{"id":"3c07cc5b-2cc6-41cd-a2c7-a6d606846dad","block_type":"box","text":"recognize that accepted corporate governance norms can differ across markets, and believe these","page_number":523,"box":{"x":117,"y":118,"width":736,"height":12}},{"id":"32afdc3b-0615-4d79-bc48-a74794b14314","block_type":"box","text":"guidelines represent globally applicable elements of governance that support a company’s ability to","page_number":523,"box":{"x":116,"y":134,"width":741,"height":12}},{"id":"11cb7f6b-5640-458a-a3e6-9ebb4ea10071","block_type":"box","text":"manage material risks and opportunities and deliver financial returns to investors. Generally, we","page_number":523,"box":{"x":117,"y":149,"width":715,"height":12}},{"id":"877082d3-9487-4be1-804d-727b5c0c87bb","block_type":"box","text":"believe companies should observe accepted corporate governance norms within their local markets or,","page_number":523,"box":{"x":117,"y":165,"width":768,"height":12}},{"id":"1853c89b-416f-42c1-a829-5a0145168efe","block_type":"box","text":"particularly in markets without well-established norms, aspire to widely recognized international best","page_number":523,"box":{"x":117,"y":180,"width":746,"height":12}},{"id":"9d646aa6-17ed-40d9-a57f-c1e1395816c6","block_type":"box","text":"practices. As one of many minority shareholders, BlackRock cannot — and does not try to — direct a","page_number":523,"box":{"x":117,"y":196,"width":754,"height":12}},{"id":"43cca04d-f1fd-48e4-b23e-b8c3e91b4a1b","block_type":"box","text":"company’s strategy or its implementation. We look to companies to provide disclosures that explain","page_number":523,"box":{"x":116,"y":211,"width":743,"height":12}},{"id":"115aa52d-173d-4f9f-90e6-cbb6248d7797","block_type":"box","text":"how their approach to corporate governance best aligns with the financial interests of their investors.","page_number":523,"box":{"x":117,"y":227,"width":749,"height":12}},{"id":"91e23b4a-e26c-4afc-a183-11ac6868a08f","block_type":"box","text":"Our approach to stewardship within active equities","page_number":523,"box":{"x":296,"y":258,"width":412,"height":11}},{"id":"0ee12854-07ce-45bc-9797-aff47b06f1bf","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of","page_number":523,"box":{"x":116,"y":289,"width":713,"height":12}},{"id":"aba6ef89-42df-412f-b3d4-da424875bd31","block_type":"box","text":"corporate governance. The voting rights attached to clients’ holdings are an important mechanism for","page_number":523,"box":{"x":116,"y":304,"width":756,"height":12}},{"id":"71faf4d1-8ab5-4854-9819-a3ac79f27c15","block_type":"box","text":"investors to express support for, or concern about, a company’s performance. As a fiduciary,","page_number":523,"box":{"x":117,"y":320,"width":692,"height":12}},{"id":"635f9299-f3e1-409c-9ce2-eafe9fcf232f","block_type":"box","text":"BlackRock is legally required to make proxy voting determinations, on behalf of clients who have","page_number":523,"box":{"x":117,"y":335,"width":720,"height":12}},{"id":"29a01f66-b4a6-4872-a981-e90ab596b6fb","block_type":"box","text":"delegated voting authority to us, in a manner consistent with BlackRock’s contractual arrangements","page_number":523,"box":{"x":116,"y":351,"width":743,"height":12}},{"id":"48c17849-3c0a-416f-aafd-1f6b7e313dea","block_type":"box","text":"with clients and funds.","page_number":523,"box":{"x":116,"y":366,"width":170,"height":10}},{"id":"da827153-0fbe-404a-9833-e2b7993e0567","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As","page_number":523,"box":{"x":117,"y":397,"width":740,"height":12}},{"id":"04e0b774-cbb1-4336-ba4a-7dc91bd2d571","block_type":"box","text":"indicated below, we may vote against management recommendations when we have concerns about","page_number":523,"box":{"x":117,"y":413,"width":755,"height":12}},{"id":"61b9da8c-1f11-493d-9f2d-f41e134264ac","block_type":"box","text":"how companies are serving the financial interests of our clients as their shareholders. BAIS takes a","page_number":523,"box":{"x":117,"y":428,"width":740,"height":12}},{"id":"e9c300fc-d574-4c57-bb5c-b85a2c14e459","block_type":"box","text":"globally consistent approach to voting but considers the different corporate governance regulations and","page_number":523,"box":{"x":116,"y":444,"width":772,"height":12}},{"id":"0df4a80b-10c3-452d-b482-f615167af3f6","block_type":"box","text":"norms across markets. Votes are determined on a case-by-case basis, in the context of a company’s","page_number":523,"box":{"x":117,"y":459,"width":753,"height":12}},{"id":"84aa206a-5928-4b56-8602-a9b10590bdde","block_type":"box","text":"situation and the investment mandate we have from clients. Please see page 19 for more information","page_number":523,"box":{"x":116,"y":475,"width":756,"height":12}},{"id":"283dffff-39ab-41de-8951-f26b0714eb31","block_type":"box","text":"about how we fulfill and oversee our investment stewardship responsibilities for BlackRock’s non-index","page_number":523,"box":{"x":116,"y":490,"width":768,"height":12}},{"id":"282a4c44-a32a-4ccd-bfe5-38a95dc7092f","block_type":"box","text":"equity strategies.","page_number":523,"box":{"x":116,"y":506,"width":125,"height":12}},{"id":"121b0d7b-ba8e-4c39-b408-f398ebeeb328","block_type":"box","text":"5","page_number":523,"box":{"x":243,"y":506,"width":6,"height":6}},{"id":"283f9d39-4f93-42ee-8e7a-cc8fd03e34ac","block_type":"box","text":"Our approach to stewardship within fixed income","page_number":523,"box":{"x":303,"y":537,"width":399,"height":12}},{"id":"c1b6b19f-a371-4ddd-a86f-243f61ccd7b9","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer","page_number":523,"box":{"x":116,"y":568,"width":695,"height":12}},{"id":"fee54056-53ef-47f4-8b28-7feee6963862","block_type":"box","text":"engagement is a component of fixed income investment strategies at BlackRock, particularly for those","page_number":523,"box":{"x":116,"y":583,"width":762,"height":12}},{"id":"8ab9bad4-6df0-4486-bf2c-6610c8034cae","block_type":"box","text":"with sustainability objectives in addition to financial objectives. Most corporate governance-related","page_number":523,"box":{"x":116,"y":599,"width":732,"height":12}},{"id":"a9c06afc-ade9-4ccd-b07d-894fbf9df1df","block_type":"box","text":"fixed income engagements are undertaken in conjunction with the active investment stewardship team,","page_number":523,"box":{"x":116,"y":614,"width":770,"height":12}},{"id":"918d111a-d29d-465d-92c1-120035caa140","block_type":"box","text":"and often active equity investors. In addition to the topics listed below, engagement with fixed income","page_number":523,"box":{"x":116,"y":630,"width":757,"height":12}},{"id":"99a9d39c-f35f-4110-a3bc-a3c7caeafdfe","block_type":"box","text":"investment teams may help inform an issuer’s approach to structuring specialist issuances and the","page_number":523,"box":{"x":117,"y":645,"width":736,"height":12}},{"id":"aa74e31c-dd84-4a84-975c-89675bb3dcb7","block_type":"box","text":"standard terms and information in bond documentation.","page_number":523,"box":{"x":116,"y":661,"width":411,"height":9}},{"id":"61e87a45-5bf5-46b3-8f16-143d61b6a146","block_type":"box","text":"4","page_number":523,"box":{"x":143,"y":828,"width":4,"height":5}},{"id":"e7ae0060-b6bd-4f37-ab19-9dc33362add6","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory boards","page_number":523,"box":{"x":171,"y":828,"width":710,"height":10}},{"id":"ca95e8af-2b6c-4df7-b8dc-23cc498cefc8","block_type":"box","text":"and their members, where relevant.","page_number":523,"box":{"x":170,"y":841,"width":210,"height":9}},{"id":"1fd0fb38-23d7-420c-9502-8c4abc857083","block_type":"box","text":"5","page_number":523,"box":{"x":143,"y":854,"width":4,"height":5}},{"id":"812d6dcc-1e0f-48b7-8fe9-a2bbbe772be7","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":523,"box":{"x":171,"y":854,"width":685,"height":9}},{"id":"7255750e-8669-4237-91cf-5a47b99e3021","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":523,"box":{"x":170,"y":867,"width":678,"height":9}},{"id":"790309f1-2c88-4be0-92e4-9963db3936e8","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":523,"box":{"x":170,"y":880,"width":458,"height":9}},{"id":"4633da05-5c07-4b53-b918-bd942a2138a5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":523,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"aec570fb-a903-4b1b-897f-42416a5f5b88","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":523,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"d4db82a6-f56e-4488-9548-15a6eae2cad0","block_type":"box","text":"5","page_number":523,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"371b7dab-a1de-4388-9d8e-7f288f192174","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":523,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"85ac31d7-bff4-448d-89d5-76a9dbc7825f","block_type":"box","text":"Boards of Directors","page_number":524,"box":{"x":422,"y":87,"width":161,"height":10}},{"id":"54e33a43-7cec-476c-8e29-b5d4ff62bfbd","block_type":"box","text":"Roles and responsibilities","page_number":524,"box":{"x":117,"y":118,"width":212,"height":12}},{"id":"1b069245-5710-4eca-8b9f-fb8b9bddd6e9","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board","page_number":524,"box":{"x":116,"y":149,"width":770,"height":12}},{"id":"f6fe8db8-ecde-45a2-8e7b-b10ef22cd1f8","block_type":"box","text":"of directors that is able to advise and supervise management in an independent and objective","page_number":524,"box":{"x":116,"y":165,"width":700,"height":12}},{"id":"e26f343a-e630-4d26-8b1d-38b9d68b73a5","block_type":"box","text":"manner.","page_number":524,"box":{"x":117,"y":183,"width":59,"height":7}},{"id":"9f994880-535b-46a0-b3cd-a2ce1a74c2ba","block_type":"box","text":"6","page_number":524,"box":{"x":178,"y":180,"width":5,"height":6}},{"id":"9fd6552b-f2f8-49c6-93c6-19ecade981cb","block_type":"box","text":"We look to the board of directors (hereafter the “board”) to have an oversight role in the establishment","page_number":524,"box":{"x":116,"y":211,"width":762,"height":12}},{"id":"1ef21ee3-7542-4329-9c17-867b3a500296","block_type":"box","text":"and realization of a company’s strategy, purpose and culture. These constructs are interdependent","page_number":524,"box":{"x":116,"y":227,"width":738,"height":12}},{"id":"1de17328-7f95-40c4-bddd-99c98ce47085","block_type":"box","text":"and, when aligned, can better position a company to be resilient in the face of a changing business","page_number":524,"box":{"x":116,"y":242,"width":739,"height":12}},{"id":"25a5066c-f9de-4b7d-9883-afafd5bbc6f4","block_type":"box","text":"environment, help reduce the risks of corporate or employee misconduct, and attract and retain the","page_number":524,"box":{"x":116,"y":258,"width":740,"height":12}},{"id":"0bdb5a82-6298-46ed-bb41-6bc43076882c","block_type":"box","text":"caliber of workers necessary to deliver financial performance over time.","page_number":524,"box":{"x":116,"y":273,"width":535,"height":12}},{"id":"5f235b7f-30f6-4b1c-804b-ae2051253761","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies","page_number":524,"box":{"x":117,"y":304,"width":754,"height":12}},{"id":"b1ec11ca-7cc7-4cc4-a1bf-39955febff0b","block_type":"box","text":"and procedures are in place to help management meet its strategic objectives within an agreed risk","page_number":524,"box":{"x":116,"y":320,"width":742,"height":12}},{"id":"5d347c15-ac3e-47d5-a129-d43f972ec2e4","block_type":"box","text":"tolerance.","page_number":524,"box":{"x":116,"y":335,"width":78,"height":10}},{"id":"cca07c26-f839-4028-8069-0263075fc191","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the","page_number":524,"box":{"x":116,"y":366,"width":739,"height":12}},{"id":"d6d7d307-0893-4c32-a190-a3e46fc371e8","block_type":"box","text":"chief executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the","page_number":524,"box":{"x":116,"y":382,"width":704,"height":12}},{"id":"9276f6d6-2215-48a8-bded-2038a0932aa3","block_type":"box","text":"performance of the CEO and other key executives, determining executive compensation, ensuring a","page_number":524,"box":{"x":117,"y":397,"width":747,"height":12}},{"id":"3066a2ab-877c-40da-8f8f-f8f86b5e4d9a","block_type":"box","text":"rigorous audit, overseeing strategy execution and risk management and engaging with shareholders,","page_number":524,"box":{"x":117,"y":413,"width":753,"height":12}},{"id":"ffb13cea-116f-4524-9ae7-1c214ad84452","block_type":"box","text":"and other stakeholders, as necessary.","page_number":524,"box":{"x":116,"y":428,"width":289,"height":12}},{"id":"f748f2d3-6966-48b6-a8eb-c26d2f5fdafe","block_type":"box","text":"Composition and effectiveness","page_number":524,"box":{"x":116,"y":467,"width":253,"height":12}},{"id":"897a4697-4211-4477-a32b-4db9c1dcf755","block_type":"box","text":"Appointment process","page_number":524,"box":{"x":116,"y":498,"width":177,"height":12}},{"id":"0d944ac5-775d-4de7-9b2b-d9f69bdf368c","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to","page_number":524,"box":{"x":116,"y":529,"width":708,"height":12}},{"id":"add8fc3f-8d15-410d-95b8-6d8465a9308b","block_type":"box","text":"ensuring the board is composed of directors with the appropriate mix of skills and experience.","page_number":524,"box":{"x":116,"y":544,"width":700,"height":12}},{"id":"44ab9659-4538-4ab8-9933-2632b6a1f3df","block_type":"box","text":"Generally, the board or a sub-committee determines the general criteria given the company’s","page_number":524,"box":{"x":117,"y":560,"width":695,"height":12}},{"id":"6d35c50b-255d-44ea-acc6-5b47a2a7e55d","block_type":"box","text":"circumstances (e.g., sector, maturity, geographic footprint) and any additional criteria for a specific role","page_number":524,"box":{"x":116,"y":575,"width":767,"height":12}},{"id":"1917f6ae-612f-4659-955b-1d208842505c","block_type":"box","text":"being filled (e.g., financial expertise, industry track record). To inform the process, we encourage","page_number":524,"box":{"x":117,"y":591,"width":721,"height":12}},{"id":"dcc025e8-3f86-4770-b49e-51d03c9862e4","block_type":"box","text":"companies to review the skills and experience of incumbent directors to identify any gaps and whether","page_number":524,"box":{"x":116,"y":606,"width":764,"height":12}},{"id":"ec7b677c-fbf2-40f2-b38c-84b79980fb97","block_type":"box","text":"the skills and experience of a director candidate would be additive. We welcome disclosures that","page_number":524,"box":{"x":116,"y":622,"width":722,"height":12}},{"id":"5d31f93f-fa7e-4a83-9f67-3052b02c70ac","block_type":"box","text":"explain how the board considered different skills and experience to ensure that the directors","page_number":524,"box":{"x":116,"y":637,"width":687,"height":12}},{"id":"d1ec009c-6fb9-4b6c-b4e0-cbaabf1b5afc","block_type":"box","text":"collectively can be effective in fulfilling their responsibilities. We assess a company’s board","page_number":524,"box":{"x":116,"y":653,"width":678,"height":12}},{"id":"783fa70c-fe1b-420d-b71b-9425ee67c22c","block_type":"box","text":"composition against that of its peer group and local market requirements.","page_number":524,"box":{"x":116,"y":668,"width":542,"height":12}},{"id":"fa22304b-78e1-4ebd-bd0f-e855560d0dc1","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any","page_number":524,"box":{"x":116,"y":699,"width":709,"height":13}},{"id":"d85636f2-3db6-44e3-94ac-1283ef9a0653","block_type":"box","text":"particular board composition in our engagements or voting but seek to understand how well placed a","page_number":524,"box":{"x":117,"y":715,"width":746,"height":12}},{"id":"bd5485fb-019f-4454-a2f7-8df4e10b548f","block_type":"box","text":"board is to act in investors’ interests. We may vote against the election of the most senior independent","page_number":524,"box":{"x":117,"y":730,"width":760,"height":13}},{"id":"f4990cc8-a104-4c3c-84d0-094a05aea68d","block_type":"box","text":"director, or the chair of the relevant committee, where a company has not demonstrated it has an","page_number":524,"box":{"x":116,"y":746,"width":720,"height":12}},{"id":"9ca03c8a-8439-4003-97c8-fd13dcbef8da","block_type":"box","text":"appointment process that results in a high functioning board with the appropriate complement of skills","page_number":524,"box":{"x":116,"y":761,"width":753,"height":13}},{"id":"dae3b1a8-7633-4183-aad9-fc7013c8b33c","block_type":"box","text":"and experience amongst the directors to support strong financial performance over time. We may vote","page_number":524,"box":{"x":116,"y":777,"width":759,"height":12}},{"id":"267627fe-0f3c-48fa-836f-7dacbce5931f","block_type":"box","text":"against newly nominated directors who do not seem to have the appropriate skills or experience to","page_number":524,"box":{"x":116,"y":793,"width":731,"height":12}},{"id":"505dc90e-fa1a-4f62-9b4d-c22d75e139b3","block_type":"box","text":"contribute to the board’s effectiveness.","page_number":524,"box":{"x":116,"y":808,"width":286,"height":9}},{"id":"fdf85bad-146b-4ecb-bbc2-74adcb0f85ff","block_type":"box","text":"6","page_number":524,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"3e261492-52c5-4784-9e78-489ac99c7500","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance principles","page_number":524,"box":{"x":170,"y":867,"width":706,"height":9}},{"id":"b130d8c2-66d6-46ae-846c-90d63354cd79","block_type":"box","text":"of the US Business Roundtable as examples.","page_number":524,"box":{"x":170,"y":880,"width":268,"height":9}},{"id":"10ca830b-bb09-4704-8623-25e130b9a044","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":524,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"11496804-4fd4-4615-8322-a5f709c20f4b","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":524,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"33198f40-7584-4a3a-81c0-4a667295194a","block_type":"box","text":"6","page_number":524,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"325406fd-4058-47b9-8e78-db38cadbc70b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":524,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3c0b04d9-0736-476f-9d72-4af1aa6f8d36","block_type":"box","text":"Independence","page_number":525,"box":{"x":116,"y":87,"width":118,"height":12}},{"id":"57b01848-feab-495f-9286-95948ca105ff","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (e.g.,","page_number":525,"box":{"x":117,"y":118,"width":706,"height":12}},{"id":"0b8624db-91a6-4fa3-b7fc-0bbfbb8012c9","block_type":"box","text":"government or employees) is of paramount importance to the protection of the interests of minority","page_number":525,"box":{"x":116,"y":134,"width":736,"height":12}},{"id":"ca304774-5e6e-44b8-8cb0-2d85bd640f0f","block_type":"box","text":"shareholders such as BlackRock’s clients. We consider it good practice for at least half the directors to","page_number":525,"box":{"x":116,"y":149,"width":766,"height":12}},{"id":"94c9faa9-d3ff-47eb-a92f-0c9c56a4c4e8","block_type":"box","text":"be independent and free from conflicts of interest or undue influence.","page_number":525,"box":{"x":117,"y":165,"width":510,"height":11}},{"id":"7f9fbf41-58b0-45ce-83bd-eb5ec558c693","block_type":"box","text":"7","page_number":525,"box":{"x":629,"y":165,"width":5,"height":6}},{"id":"1cde2236-810a-40ec-811f-80ef908bc624","block_type":"box","text":"This also helps to ensure that","page_number":525,"box":{"x":635,"y":165,"width":229,"height":11}},{"id":"cc86d05c-be50-47d3-ae16-bdbbc8a8ddbe","block_type":"box","text":"board committees are composed of a sufficient number of independent directors. Companies domiciled","page_number":525,"box":{"x":117,"y":180,"width":770,"height":12}},{"id":"e851f9c9-fe9b-4deb-98f1-d957eb95cfe3","block_type":"box","text":"in markets with a higher threshold for board independence should meet those local requirements.","page_number":525,"box":{"x":117,"y":196,"width":727,"height":12}},{"id":"a1b45a13-553f-4cf3-8a24-3695ed5cfa7f","block_type":"box","text":"We may vote against the election of non-independent directors if the board does not have a sufficient","page_number":525,"box":{"x":116,"y":227,"width":756,"height":12}},{"id":"a92944af-c4c3-47bd-98d2-834c778e924c","block_type":"box","text":"balance of independence. We may also vote against the election of the chair of the committee","page_number":525,"box":{"x":117,"y":242,"width":701,"height":12}},{"id":"05cebf9e-4546-4a8b-b2f1-d968a16a0190","block_type":"box","text":"responsible for board composition if this is a perennial issue.","page_number":525,"box":{"x":117,"y":258,"width":453,"height":11}},{"id":"7b7f4e24-47ba-4a8a-8272-6f2c8d4852e3","block_type":"box","text":"Independent board leadership","page_number":525,"box":{"x":116,"y":289,"width":245,"height":11}},{"id":"7f4b9ade-a69e-4f95-8587-bf87161b35d3","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to","page_number":525,"box":{"x":117,"y":320,"width":718,"height":12}},{"id":"899f733c-7f60-4450-8f0e-5a25310c9eeb","block_type":"box","text":"independent board leadership. One is a non-executive, independent chair of the board who is","page_number":525,"box":{"x":117,"y":335,"width":697,"height":12}},{"id":"b9510841-5af2-4f92-875f-23456452db3d","block_type":"box","text":"responsible for leading the board in the effective exercise of its duties. The other is a lead or senior","page_number":525,"box":{"x":117,"y":351,"width":738,"height":12}},{"id":"1f731dc1-6da0-47cf-8f06-4baa304470fb","block_type":"box","text":"independent director, who is responsible for coordinating with the other non-executive directors and","page_number":525,"box":{"x":117,"y":366,"width":742,"height":12}},{"id":"b5595230-c37c-4ae3-81c2-5a95be8ecf43","block_type":"box","text":"working closely with the executive chair on the board agenda and other board procedures. In this case,","page_number":525,"box":{"x":116,"y":382,"width":770,"height":12}},{"id":"3f158778-d36b-48a6-bc46-1286ec59e07e","block_type":"box","text":"the executive chair and the lead independent director work together to ensure the board is effectively","page_number":525,"box":{"x":116,"y":397,"width":754,"height":12}},{"id":"f1dc6a96-fd34-4da8-a109-c26ead0de0b5","block_type":"box","text":"fulfilling its responsibilities. In our view, the independent leader of the board, and/or the chair of a","page_number":525,"box":{"x":116,"y":413,"width":723,"height":12}},{"id":"5944e557-4de6-4600-af65-80b8f9caad3d","block_type":"box","text":"relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":525,"box":{"x":117,"y":428,"width":727,"height":12}},{"id":"dd2d5251-c343-4a6c-b55f-645c42cae633","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board","page_number":525,"box":{"x":116,"y":444,"width":691,"height":12}},{"id":"aaff9d0c-c584-4528-b60f-4918d9054bd7","block_type":"box","text":"leadership model and how it serves the interests of shareholders.","page_number":525,"box":{"x":117,"y":459,"width":489,"height":12}},{"id":"a9c66c47-5916-4a3e-a913-cbfb3e0a0ec4","block_type":"box","text":"We may vote against the election of the chair of the committee responsible for board composition if","page_number":525,"box":{"x":116,"y":490,"width":740,"height":12}},{"id":"6c5ce205-daf6-4edb-b579-a737443d95f1","block_type":"box","text":"there is not an identified independent leader of the board with clear responsibilities for board","page_number":525,"box":{"x":116,"y":506,"width":689,"height":12}},{"id":"d066f90c-c803-45d0-9797-01616ab9e162","block_type":"box","text":"performance. We may vote against the most senior independent director if the board has a policy of","page_number":525,"box":{"x":117,"y":521,"width":744,"height":12}},{"id":"1aabd414-9749-41b0-941a-888dd2bda9f3","block_type":"box","text":"not engaging with shareholders.","page_number":525,"box":{"x":117,"y":537,"width":242,"height":12}},{"id":"9e90e99a-d162-4051-b863-6701034dc84c","block_type":"box","text":"Tenure and succession","page_number":525,"box":{"x":118,"y":568,"width":189,"height":9}},{"id":"728bf0d9-0433-4dc5-90fd-ca5279ad6110","block_type":"box","text":"In our view, it is good practice for boards to establish the length of time a director would normally be","page_number":525,"box":{"x":117,"y":599,"width":745,"height":12}},{"id":"cdbe1db0-8fb6-4b68-b9b6-2beade3be5c0","block_type":"box","text":"expected to serve, in line with market norms where those exist. We find it helpful when companies","page_number":525,"box":{"x":116,"y":614,"width":733,"height":12}},{"id":"d09ef146-214c-43d5-9e7b-502fe4d12d4d","block_type":"box","text":"disclose their approach to director tenure particularly around the contributions of directors who have","page_number":525,"box":{"x":116,"y":630,"width":745,"height":12}},{"id":"6b5f2c45-6fea-4c64-b97b-42cf26fb84f3","block_type":"box","text":"served for longer periods than typically provided for under local practice. In our experience, long","page_number":525,"box":{"x":116,"y":645,"width":718,"height":12}},{"id":"58bcfa2e-4bed-4ebb-b3da-bfdd5a00d25e","block_type":"box","text":"serving directors could become less independent given their long-term relationship with management","page_number":525,"box":{"x":116,"y":661,"width":751,"height":12}},{"id":"0fe07278-0640-4e2d-abd7-ed4a26be0610","block_type":"box","text":"and involvement in past board decisions.","page_number":525,"box":{"x":116,"y":676,"width":302,"height":12}},{"id":"4299696e-baa6-4d3a-8ebc-4da3e4743dcb","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances","page_number":525,"box":{"x":116,"y":707,"width":750,"height":12}},{"id":"111502f8-7651-46c9-a854-aa628ee70d9d","block_type":"box","text":"renewal through the regular introduction of directors with fresh perspectives and expertise with","page_number":525,"box":{"x":117,"y":723,"width":699,"height":12}},{"id":"54a2fd9f-755b-4b5f-9810-a74190816519","block_type":"box","text":"continuity through the retention of directors with long-term knowledge of the board and company.","page_number":525,"box":{"x":116,"y":738,"width":718,"height":12}},{"id":"506bd99f-9a0e-463e-acea-a3ceffde79a8","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate","page_number":525,"box":{"x":117,"y":769,"width":675,"height":12}},{"id":"78d67823-2226-4de1-a438-c64265722b6f","block_type":"box","text":"governance best practices, we may vote against the election of the chair of the committee responsible","page_number":525,"box":{"x":116,"y":785,"width":757,"height":12}},{"id":"30e3df5e-2faa-451d-8848-bebab4de3367","block_type":"box","text":"for board composition if a company does not clearly disclose its approach to director tenure and board","page_number":525,"box":{"x":116,"y":800,"width":757,"height":12}},{"id":"f79ed0d4-9b61-42a2-bc72-2f5fc0b04596","block_type":"box","text":"7","page_number":525,"box":{"x":143,"y":828,"width":4,"height":5}},{"id":"588b0f60-e284-4354-9b1b-9c07d5359914","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":525,"box":{"x":170,"y":828,"width":659,"height":10}},{"id":"dc304739-10f8-45f9-9bd6-a9a6f04c301a","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":525,"box":{"x":170,"y":841,"width":659,"height":9}},{"id":"a08ba6e7-38f8-4516-bbe6-7e435a934216","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which could, or","page_number":525,"box":{"x":170,"y":854,"width":702,"height":9}},{"id":"ac9f4785-12e1-44f0-bb03-e0e865dc8f56","block_type":"box","text":"could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests of the company","page_number":525,"box":{"x":170,"y":867,"width":703,"height":9}},{"id":"f91d56cd-e9fc-42d3-a4ec-32c69c8ab149","block_type":"box","text":"and shareholders.","page_number":525,"box":{"x":170,"y":880,"width":106,"height":7}},{"id":"119240a8-88ae-4306-9763-5f18ad11c27b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":525,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"fa006b76-e93e-4ac3-bb53-e9a4b7ec3c4f","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":525,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"6611d252-98f3-4628-9831-88829f4eb904","block_type":"box","text":"7","page_number":525,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"4a4bbc23-df24-4edf-9bb2-d974cb0a6f3f","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":525,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0e6b446b-7efc-4236-84c0-05815401f613","block_type":"box","text":"renewal. We may vote against the election of directors who have served for more years than is typical","page_number":526,"box":{"x":117,"y":87,"width":760,"height":12}},{"id":"dded407d-de5d-4f31-be5f-7084b293b738","block_type":"box","text":"in markets with specific guidance, where the case for their continued service is not evident.","page_number":526,"box":{"x":117,"y":102,"width":679,"height":13}},{"id":"64287707-dc83-4cac-ada1-ed9469cc3c7d","block_type":"box","text":"Capacity","page_number":526,"box":{"x":117,"y":134,"width":74,"height":12}},{"id":"cf09ee30-ea24-455c-9043-5e123252cf5b","block_type":"box","text":"To be effective and engaged, directors need to have the time and energy to commit to the role. In our","page_number":526,"box":{"x":116,"y":165,"width":757,"height":12}},{"id":"bbe6964e-ed53-4c9e-9bae-3a474b6685fd","block_type":"box","text":"view, an effective board will assess the ability of its members to maintain an appropriate focus on","page_number":526,"box":{"x":116,"y":180,"width":726,"height":12}},{"id":"5c1fac7c-50ec-468e-909b-4269226f646d","block_type":"box","text":"board matters and the company taking into consideration competing responsibilities. We recognize that","page_number":526,"box":{"x":117,"y":196,"width":770,"height":12}},{"id":"868de6be-3d61-4ba9-bcb1-524bfa5d8aef","block_type":"box","text":"board leadership roles vary across markets in responsibilities and required time commitment but note","page_number":526,"box":{"x":117,"y":211,"width":756,"height":12}},{"id":"c17ef0ac-add2-41b9-84c5-0b7d0509fdd4","block_type":"box","text":"that they are generally more intensive than a standard directorship. We will take local norms and","page_number":526,"box":{"x":116,"y":227,"width":721,"height":12}},{"id":"e787f3dd-4533-4788-975b-efe1561f9f2c","block_type":"box","text":"practices into consideration when making our voting determinations across markets.","page_number":526,"box":{"x":117,"y":242,"width":628,"height":12}},{"id":"af1234be-aca4-48f2-973a-96fdf037d8a2","block_type":"box","text":"We may vote against the election of directors who do not seem to have sufficient capacity to effectively","page_number":526,"box":{"x":116,"y":273,"width":769,"height":12}},{"id":"976684ee-8fa4-4c21-8ea7-864e969921b2","block_type":"box","text":"fulfil their duties to the board and company.","page_number":526,"box":{"x":116,"y":289,"width":326,"height":12}},{"id":"6c61b154-47a9-4df4-a1a6-5f09fff690b2","block_type":"box","text":"Director elections","page_number":526,"box":{"x":116,"y":320,"width":147,"height":9}},{"id":"d3ec51ed-8ce5-4fb4-8f33-06054a0c9869","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A","page_number":526,"box":{"x":117,"y":351,"width":720,"height":12}},{"id":"28dd93e3-d638-4564-a977-64b8ff3be297","block_type":"box","text":"classified board structure","page_number":526,"box":{"x":116,"y":366,"width":186,"height":10}},{"id":"c3a5c766-cdc5-4fd1-8712-9c99af066489","block_type":"box","text":"8","page_number":526,"box":{"x":303,"y":366,"width":5,"height":6}},{"id":"a5da282b-fc6f-48d6-89b5-52f0030db5ea","block_type":"box","text":"may be justified by a company when it needs consistency and stability","page_number":526,"box":{"x":309,"y":366,"width":530,"height":12}},{"id":"c400e5f9-0077-4114-bba9-ec757c4a1f02","block_type":"box","text":"during a time of transition, or on the basis of its business model (e.g., a non-operating company such","page_number":526,"box":{"x":116,"y":382,"width":754,"height":12}},{"id":"c3c14baf-a88d-4984-9ef6-a2e4cbd6a2a5","block_type":"box","text":"as closed-end funds).","page_number":526,"box":{"x":116,"y":397,"width":165,"height":12}},{"id":"e9b76d03-3c1d-4320-86c7-80d3d6caf42b","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in","page_number":526,"box":{"x":116,"y":428,"width":746,"height":12}},{"id":"314971c3-6152-4421-8532-7b83627b65f5","block_type":"box","text":"bundled slates. We look to companies to provide sufficient information on each director standing for","page_number":526,"box":{"x":117,"y":444,"width":743,"height":12}},{"id":"e911de5f-ae7f-4172-9784-96142fb6ae10","block_type":"box","text":"election so that shareholders can assess their capabilities and suitability. We will generally not support","page_number":526,"box":{"x":116,"y":459,"width":765,"height":12}},{"id":"c3c41031-fac8-4a07-9c69-6cf6aeb49685","block_type":"box","text":"the election of directors whose names and biographical details have not been disclosed sufficiently in","page_number":526,"box":{"x":116,"y":475,"width":755,"height":12}},{"id":"06715bb3-bd12-40c2-823b-d581b870f813","block_type":"box","text":"advance of the shareholder meeting.","page_number":526,"box":{"x":116,"y":490,"width":278,"height":12}},{"id":"654b7e4d-e6d2-4b81-ad07-93b4cc35ceb6","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at","page_number":526,"box":{"x":117,"y":521,"width":746,"height":12}},{"id":"cc319732-9fbd-470d-8032-ff1f5644a63d","block_type":"box","text":"the shareholder meeting. Where a company’s practices differ, we look to the board to provide a","page_number":526,"box":{"x":116,"y":537,"width":712,"height":12}},{"id":"d7522396-f7b8-454c-ac48-1d3794ade6d3","block_type":"box","text":"detailed explanation as to how its approach best serves investors’ interests.","page_number":526,"box":{"x":116,"y":552,"width":567,"height":12}},{"id":"8551a2ca-179f-4396-88db-01735de9b583","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of","page_number":526,"box":{"x":116,"y":583,"width":710,"height":12}},{"id":"062c47b0-4db8-4043-9b9a-e379039c8f85","block_type":"box","text":"directors and/or a simple majority vote standard for director elections. We may vote against all the","page_number":526,"box":{"x":116,"y":599,"width":732,"height":12}},{"id":"cbccdd84-8c7d-44e2-aaa5-a04643ceb2a2","block_type":"box","text":"directors standing for election as part of a single slate if we have concerns about the profile or","page_number":526,"box":{"x":116,"y":614,"width":701,"height":12}},{"id":"9bdc1cef-f354-4471-af68-aee3ad2745f1","block_type":"box","text":"performance of an individual director.","page_number":526,"box":{"x":117,"y":630,"width":280,"height":12}},{"id":"30dd1738-b683-4bb3-858a-a16fe2c1c7db","block_type":"box","text":"Committees","page_number":526,"box":{"x":117,"y":661,"width":95,"height":9}},{"id":"b1c0b71e-23f6-445e-9a5f-5e1867139146","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and","page_number":526,"box":{"x":117,"y":692,"width":751,"height":12}},{"id":"d7fd6d2d-70d7-49c7-be71-d50512cedaaa","block_type":"box","text":"risk, governance and human capital, and executive compensation, amongst other matters. We do not","page_number":526,"box":{"x":117,"y":707,"width":751,"height":12}},{"id":"d66df442-8c01-448e-abea-7b0a42b9b204","block_type":"box","text":"prescribe to companies what committees they should establish, but we seek to understand the board’s","page_number":526,"box":{"x":117,"y":723,"width":760,"height":12}},{"id":"8b6c132e-633e-48c5-8e8b-26ad9e7ba594","block_type":"box","text":"rationale for the committee structure it determines is appropriate. We note that, in some markets,","page_number":526,"box":{"x":117,"y":738,"width":717,"height":12}},{"id":"b4a1eaa8-4b5b-496a-ac83-4b0df2e94cb2","block_type":"box","text":"regulation requires such committees. The responsibilities of each committee should be clear, and the","page_number":526,"box":{"x":117,"y":754,"width":748,"height":12}},{"id":"32d80e37-3d82-41c5-985c-c30cca3d17a1","block_type":"box","text":"board should ensure that all critical matters are assigned either to the full board or to one of the","page_number":526,"box":{"x":117,"y":769,"width":706,"height":12}},{"id":"48907268-8d9e-4f65-85ac-6d2df754f104","block_type":"box","text":"committees. It is helpful to investor understanding when the board discloses the structure,","page_number":526,"box":{"x":116,"y":785,"width":665,"height":12}},{"id":"ea3b30c7-dcc1-4a89-a0fd-7ce23142b956","block_type":"box","text":"8","page_number":526,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"3b653f63-da2b-4b80-9edc-62df838feac9","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":526,"box":{"x":170,"y":867,"width":673,"height":9}},{"id":"838ff2c2-8258-4c94-8dbb-6493d9abfb28","block_type":"box","text":"directors stands for election in any one year.","page_number":526,"box":{"x":170,"y":880,"width":262,"height":9}},{"id":"2a892d25-06b4-466c-b24c-5b98e7b71f68","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":526,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"225dca3a-7988-4bba-8c6f-bafc27558542","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":526,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"48171c98-3cb2-42b9-97af-766b33ca8c59","block_type":"box","text":"8","page_number":526,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"37892b12-d40c-477c-9b26-0fa98c2db879","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":526,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3d1a4b66-f49d-4288-bb1d-76d4705cc2fe","block_type":"box","text":"membership, proportion of independent directors, and responsibilities of each committee. The","page_number":527,"box":{"x":117,"y":87,"width":700,"height":12}},{"id":"a4c9e6fb-3b65-4eed-bd28-0b97fe6f8bde","block_type":"box","text":"responsibilities we typically see assigned to the three most common committees include:","page_number":527,"box":{"x":117,"y":103,"width":662,"height":12}},{"id":"2aaa57e7-314c-4d0c-af76-110c4a9f141a","block_type":"box","text":"• Audit and risk – oversight responsibilities for the integrity of financial reporting, risk","page_number":527,"box":{"x":150,"y":134,"width":650,"height":12}},{"id":"71958090-33d4-4c4c-99a3-b63fd7be5b1a","block_type":"box","text":"management and compliance with legal and regulatory requirements; may also play an","page_number":527,"box":{"x":184,"y":149,"width":650,"height":12}},{"id":"7342512e-847a-4d44-80d5-09df08e9022f","block_type":"box","text":"oversight role in relation to the internal audit function and whistleblowing mechanisms.","page_number":527,"box":{"x":184,"y":165,"width":643,"height":12}},{"id":"363d5502-bb17-4d87-9a9f-e047a98059b2","block_type":"box","text":"• Nominating, governance and human capital – oversight responsibilities for corporate","page_number":527,"box":{"x":150,"y":188,"width":664,"height":12}},{"id":"e795ebbe-a8e8-4d21-94dc-0dc2741000d2","block_type":"box","text":"governance principles and practices of the company, including the periodic review of board","page_number":527,"box":{"x":184,"y":203,"width":679,"height":12}},{"id":"2671bf48-c9cd-4ecd-9638-6d81e3a609ff","block_type":"box","text":"performance; responsibility for succession planning for CEO and key board roles, as well as","page_number":527,"box":{"x":184,"y":219,"width":687,"height":12}},{"id":"080b9751-a7d6-49ca-962c-5b4df965fff8","block_type":"box","text":"the director appointment process; may also have oversight responsibilities for human capital","page_number":527,"box":{"x":183,"y":234,"width":690,"height":12}},{"id":"4d4671f4-c9fe-451b-ab8f-6510e342170a","block_type":"box","text":"management strategies, including corporate culture and purpose.","page_number":527,"box":{"x":184,"y":250,"width":489,"height":12}},{"id":"074c4982-4077-4e48-a063-2b5aa8a91c8e","block_type":"box","text":"• Executive compensation – determines the compensation policies and programs for the CEO","page_number":527,"box":{"x":150,"y":273,"width":723,"height":12}},{"id":"f210d957-3181-4e0c-80e0-21ac8a6d507e","block_type":"box","text":"and other executive officers, approves annual awards and payments under the policies; may","page_number":527,"box":{"x":184,"y":289,"width":690,"height":12}},{"id":"e3cbd4fd-eb5d-4ac3-a675-0b8f3525c4b8","block_type":"box","text":"also have oversight responsibilities for firm-wide compensation policies.","page_number":527,"box":{"x":184,"y":304,"width":536,"height":12}},{"id":"b0eeb987-0bb4-46ba-8b15-b5afba85ec38","block_type":"box","text":"We may vote against the election of the chair of the committee or other directors serving as committee","page_number":527,"box":{"x":116,"y":335,"width":765,"height":12}},{"id":"6bcba4d7-47ce-4fe6-b326-9c727413ec9e","block_type":"box","text":"members to convey concerns about how a committee has undertaken its responsibilities. We may vote","page_number":527,"box":{"x":117,"y":351,"width":767,"height":12}},{"id":"284675b7-f78d-4d75-bfc9-d2e2901e962e","block_type":"box","text":"against the election of the most senior non-executive director if there is not a clearly disclosed","page_number":527,"box":{"x":116,"y":366,"width":702,"height":12}},{"id":"5e286ab5-8478-4eab-810c-8f7512d9138f","block_type":"box","text":"approach to board committees.","page_number":527,"box":{"x":116,"y":382,"width":236,"height":12}},{"id":"7cfd60a0-3264-4ce5-9a10-844910055567","block_type":"box","text":"Board and director evaluation","page_number":527,"box":{"x":116,"y":413,"width":243,"height":9}},{"id":"9e2609a2-bcea-40a7-8802-4a56546c0f40","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the","page_number":527,"box":{"x":116,"y":444,"width":729,"height":12}},{"id":"3ffe3413-8e27-4488-b4f9-e73c14c6298f","block_type":"box","text":"board, the committees, the chair and individual directors. Periodically, this review could be undertaken","page_number":527,"box":{"x":117,"y":459,"width":762,"height":12}},{"id":"fbc9fc7b-7ba8-4c9d-8d8b-da5b79d257df","block_type":"box","text":"by an independent third party able to bring objective perspectives to the board on governance and","page_number":527,"box":{"x":117,"y":475,"width":732,"height":12}},{"id":"82f4d3c7-f40b-4274-8278-030178c4c851","block_type":"box","text":"performance. We encourage companies to disclose their approach to and the objectives of","page_number":527,"box":{"x":117,"y":490,"width":677,"height":12}},{"id":"7852b313-2456-415d-86fe-473f5b5cf342","block_type":"box","text":"evaluations, including any changes made to the board’s approach as a result.","page_number":527,"box":{"x":116,"y":506,"width":581,"height":12}},{"id":"c712171f-cf0b-44d2-ab92-23f425209fbf","block_type":"box","text":"Access to independent advice","page_number":527,"box":{"x":116,"y":537,"width":246,"height":12}},{"id":"78db6495-8525-4485-95a2-c66403482b21","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they","page_number":527,"box":{"x":116,"y":568,"width":723,"height":12}},{"id":"b132a95b-bd04-412c-87a8-1dde47fd32a8","block_type":"box","text":"should have access to independent advice. In certain circumstances, it may be helpful to boards to","page_number":527,"box":{"x":116,"y":583,"width":738,"height":12}},{"id":"297806d0-29e1-489c-bac1-6e37449b003d","block_type":"box","text":"retain independent third parties to advise on critical matters. These might include new industry","page_number":527,"box":{"x":117,"y":599,"width":703,"height":12}},{"id":"c2952125-00ad-46b9-a1a4-cc910c4d451c","block_type":"box","text":"developments such as emergent and disruptive technology, operating events with material","page_number":527,"box":{"x":116,"y":614,"width":676,"height":12}},{"id":"3542d703-4ab8-4852-b584-8f0e52933ec7","block_type":"box","text":"consequences for the company’s reputation and/or performance, or significant transactions. Board","page_number":527,"box":{"x":116,"y":630,"width":735,"height":12}},{"id":"0e3f4112-5f67-4394-a918-402d163afc62","block_type":"box","text":"committees may similarly retain third parties to advise them on specialist matters such as audit,","page_number":527,"box":{"x":116,"y":645,"width":713,"height":12}},{"id":"1d93d5c8-424e-4b59-901b-4f5ea67abe0c","block_type":"box","text":"compensation and succession planning.","page_number":527,"box":{"x":116,"y":661,"width":297,"height":12}},{"id":"88c7789f-e935-4278-975f-cc44484f98c1","block_type":"box","text":"Executive compensation","page_number":527,"box":{"x":402,"y":692,"width":195,"height":12}},{"id":"41c1acc4-1dd9-4ebf-bd2a-1a76f68fffe6","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to","page_number":527,"box":{"x":117,"y":723,"width":755,"height":12}},{"id":"d30c5370-928c-4da5-8532-9ea488d467ed","block_type":"box","text":"recruit, retain and reward the caliber of executive management necessary to lead and operate the","page_number":527,"box":{"x":117,"y":738,"width":724,"height":12}},{"id":"c9e08b67-9144-4e22-a741-1cbca661b1b2","block_type":"box","text":"company to deliver superior financial returns over time. We focus on alignment between variable pay","page_number":527,"box":{"x":116,"y":754,"width":748,"height":12}},{"id":"8ebf3cdb-6df0-4844-bbd0-8eda25084ac4","block_type":"box","text":"and a company’s financial performance.","page_number":527,"box":{"x":116,"y":769,"width":296,"height":12}},{"id":"6e0300cd-b08e-4f6f-9b49-689a38cb50af","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus","page_number":527,"box":{"x":117,"y":800,"width":746,"height":12}},{"id":"eb18bc4e-cf5b-44b6-981b-f3e888c2707f","block_type":"box","text":"that rewards performance against short-term metrics, incentives — most often share-based- that","page_number":527,"box":{"x":116,"y":816,"width":717,"height":12}},{"id":"3ffc0057-559e-4dc6-89aa-88537573377a","block_type":"box","text":"reward performance against long-term metrics, and pensions and benefits. In our observation, base","page_number":527,"box":{"x":117,"y":831,"width":744,"height":12}},{"id":"fb064faf-08c6-4ffa-acaa-b09ecfa07e78","block_type":"box","text":"salary, pensions and benefits are largely set relative to market norms and benchmarks. The annual","page_number":527,"box":{"x":116,"y":847,"width":741,"height":12}},{"id":"4773a03c-c2b3-49c0-9276-075db4e6ea85","block_type":"box","text":"bonus and share-based incentive, or variable pay plans, tend to be tailored to the company, its sector","page_number":527,"box":{"x":117,"y":862,"width":757,"height":12}},{"id":"32c5d116-dd71-4b6e-a8aa-9c55993bab55","block_type":"box","text":"and long-term strategy, as well as the individuals the board is seeking to recruit and motivate.","page_number":527,"box":{"x":116,"y":878,"width":699,"height":12}},{"id":"24df9ff7-4264-4e57-9599-c11c3d185a33","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":527,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"0853c411-265a-47a6-a092-0ffdac6215fb","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":527,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"14831a6b-28f6-45a4-9b31-1e20c4576a20","block_type":"box","text":"9","page_number":527,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"3aab2055-73fc-48c4-855a-cec48a189cf3","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":527,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"59231d67-615a-4ed4-a60f-e197c2ab41c2","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a","page_number":528,"box":{"x":117,"y":87,"width":693,"height":12}},{"id":"1a068515-39a9-4548-8757-9cd677e13c5c","block_type":"box","text":"company’s approach to executive compensation on a case-by-case basis. We rely on companies","page_number":528,"box":{"x":116,"y":103,"width":726,"height":12}},{"id":"b774afc5-5ae7-4d0f-b032-c00e3bfab514","block_type":"box","text":"providing sufficient quantitative and qualitative information in their disclosures to enable shareholders","page_number":528,"box":{"x":117,"y":118,"width":754,"height":12}},{"id":"17d08d22-b4df-420d-9eb4-f6ef9f8737d1","block_type":"box","text":"to understand the compensation arrangements and assess the alignment with investors’ interests.","page_number":528,"box":{"x":116,"y":134,"width":732,"height":12}},{"id":"629a7b49-b497-4cca-97bb-b6147796e2c8","block_type":"box","text":"Features we look for in compensation arrangements include:","page_number":528,"box":{"x":117,"y":149,"width":454,"height":12}},{"id":"2e1461e0-88a0-4e2a-b12f-94e13b4e03b9","block_type":"box","text":"• Fixed pay components, including base salary, benefits and prerequisites that are appropriate","page_number":528,"box":{"x":150,"y":180,"width":727,"height":12}},{"id":"6f6e1474-15a3-4840-978b-afa546301a3e","block_type":"box","text":"in the context of the company’s size, sector and market.","page_number":528,"box":{"x":184,"y":196,"width":419,"height":12}},{"id":"f007e10d-0d46-467e-9c5e-f64cd57d8009","block_type":"box","text":"• Variable pay subject to performance metrics that are closely linked to the company’s short","page_number":528,"box":{"x":150,"y":219,"width":707,"height":12}},{"id":"cfa1ba88-0654-4f31-ab5b-5e34f577d7e8","block_type":"box","text":"and long-term strategic objectives.","page_number":528,"box":{"x":184,"y":234,"width":260,"height":12}},{"id":"93c63b80-5cbe-47a6-b3c0-7c57115f2c8c","block_type":"box","text":"• Long-term incentives that motivate sustained performance across a multi-year period.","page_number":528,"box":{"x":150,"y":258,"width":674,"height":12}},{"id":"9c6e663b-07a0-4591-a02f-d86b96e5133a","block_type":"box","text":"• A balance between fixed and variable pay, short- and long-term incentives, and specific","page_number":528,"box":{"x":150,"y":281,"width":688,"height":12}},{"id":"a2484451-6d23-445c-b193-ecc0ae23701c","block_type":"box","text":"instruments (cash and equity awards) that promotes pay program durability and seldom","page_number":528,"box":{"x":184,"y":296,"width":654,"height":12}},{"id":"ed43b517-1d67-465d-9eb4-b745f45bcfcd","block_type":"box","text":"necessitates one-off, discretionary payments.","page_number":528,"box":{"x":184,"y":312,"width":342,"height":12}},{"id":"dd445770-f713-4a01-9abd-3914166fb483","block_type":"box","text":"• Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":528,"box":{"x":150,"y":335,"width":720,"height":12}},{"id":"0b974847-c115-4d6c-a7fe-334a3d30b233","block_type":"box","text":"• Board discretion, if allowed within the variable pay arrangements, to be used sparingly,","page_number":528,"box":{"x":150,"y":358,"width":683,"height":12}},{"id":"ac8e2de4-fe21-4098-83f9-5501de0719e9","block_type":"box","text":"responsibly and transparently.","page_number":528,"box":{"x":184,"y":374,"width":228,"height":12}},{"id":"3a8e7ac5-a722-48d4-af90-d47c05971773","block_type":"box","text":"• A requirement, that participants in long-term share-based incentive plans build a meaningful","page_number":528,"box":{"x":150,"y":397,"width":721,"height":12}},{"id":"6a8e456f-43e1-41bb-89fa-6adba6999b04","block_type":"box","text":"shareholding in the company within a defined time period, as determined by the board or","page_number":528,"box":{"x":184,"y":413,"width":662,"height":12}},{"id":"39bf86e4-5624-469d-bcc3-06a5f3c0310e","block_type":"box","text":"relevant board committee.","page_number":528,"box":{"x":184,"y":428,"width":198,"height":10}},{"id":"5b30c586-ce8a-483d-a909-221b3c9f2472","block_type":"box","text":"• Change of control provisions that appropriately balance the interests of executives and","page_number":528,"box":{"x":150,"y":451,"width":681,"height":12}},{"id":"a4d595d1-0c1f-49b5-b38c-6a97e95e5dd1","block_type":"box","text":"shareholders.","page_number":528,"box":{"x":184,"y":467,"width":106,"height":9}},{"id":"e10a92d0-6c99-47ae-8799-972dc35288e8","block_type":"box","text":"• Clawback or malus provisions that allow the company to recoup or hold back variable","page_number":528,"box":{"x":150,"y":490,"width":672,"height":12}},{"id":"e13016fc-cfa1-4eb3-a6b8-2acad0974de1","block_type":"box","text":"compensation from individuals whose awards were based on fraudulent activities, misstated","page_number":528,"box":{"x":184,"y":506,"width":687,"height":12}},{"id":"0c98146a-0010-4375-8cd1-7ba713303349","block_type":"box","text":"financial reports, or executive misconduct.","page_number":528,"box":{"x":183,"y":521,"width":318,"height":12}},{"id":"fdab1574-d2e2-496d-a68f-7022fa9fd803","block_type":"box","text":"• Severance arrangements that protect the company’s interests but do not cost more than is","page_number":528,"box":{"x":150,"y":544,"width":710,"height":12}},{"id":"79ee81a5-56df-4712-a2d9-a57bf6c860bf","block_type":"box","text":"contractual.","page_number":528,"box":{"x":184,"y":560,"width":91,"height":9}},{"id":"a53811d0-4bf8-4f27-8cd6-7bb9105f0593","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or","page_number":528,"box":{"x":116,"y":591,"width":757,"height":12}},{"id":"3d90fb69-7ed4-4ca0-9f21-dd73eda6d114","block_type":"box","text":"plans, or approve the compensation report where we do not see alignment between executive","page_number":528,"box":{"x":117,"y":607,"width":701,"height":11}},{"id":"f6336596-980f-4f27-afe9-baa14470ca4a","block_type":"box","text":"compensation arrangements and our clients’ financial interests. When there is not an alternative, or","page_number":528,"box":{"x":116,"y":622,"width":742,"height":12}},{"id":"c7db00e0-dede-4514-bd4e-39d7a6b65740","block_type":"box","text":"where there have been multi-year issues with compensation misaligned with performance, we may","page_number":528,"box":{"x":116,"y":637,"width":738,"height":12}},{"id":"957134af-4d98-4ca1-97cb-54abea988efe","block_type":"box","text":"vote against the election of the chair of the responsible committee, or the most senior independent","page_number":528,"box":{"x":116,"y":653,"width":735,"height":12}},{"id":"c2f9b71f-63ac-460b-b246-b30dec213ad9","block_type":"box","text":"director.","page_number":528,"box":{"x":116,"y":669,"width":59,"height":9}},{"id":"383f7421-c1f2-4954-8ff9-dc0d421b8745","block_type":"box","text":"Non-executive director compensation","page_number":528,"box":{"x":350,"y":700,"width":299,"height":11}},{"id":"c829d43a-8de8-440a-bdaf-ba83392329f9","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a","page_number":528,"box":{"x":117,"y":730,"width":706,"height":13}},{"id":"1e3f4226-a733-446d-8aea-e7f41238574f","block_type":"box","text":"combination of the two. Some companies also pay additional fees for service on board committees or","page_number":528,"box":{"x":116,"y":746,"width":752,"height":12}},{"id":"14879263-b291-4b71-9e71-75e7a4ff5dec","block_type":"box","text":"in board leadership roles. We do not support non-executive directors participating in performance","page_number":528,"box":{"x":117,"y":761,"width":726,"height":13}},{"id":"fd7a0d9c-d7bd-4579-beff-5362a3237e21","block_type":"box","text":"based incentive plans as doing so may create a conflict of interest and undermine their independence","page_number":528,"box":{"x":117,"y":777,"width":753,"height":12}},{"id":"61c4818d-0f6a-4bc9-8004-a04424caa2e8","block_type":"box","text":"from management, whom they oversee.","page_number":528,"box":{"x":116,"y":792,"width":295,"height":13}},{"id":"4c0e9317-660c-4d8b-881d-4ee2dc657a1b","block_type":"box","text":"Capital structure","page_number":528,"box":{"x":433,"y":823,"width":133,"height":12}},{"id":"ebaa5b57-e30f-4ea5-8cb4-4266bcec7fb0","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that","page_number":528,"box":{"x":117,"y":854,"width":765,"height":13}},{"id":"83a090ab-481f-4690-9cd2-7caa101951da","block_type":"box","text":"achieves appropriate capital allocation in support of long-term financial resilience.","page_number":528,"box":{"x":116,"y":870,"width":610,"height":12}},{"id":"0b50f275-c794-45aa-a918-411e14ab5b28","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":528,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"b025e41b-a82e-46e9-b27e-caaa41fc6865","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":528,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"2f6d4eaa-782f-4b98-a3d3-82287b3e7b23","block_type":"box","text":"10","page_number":528,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"6ff82fc0-ee1d-4019-a683-e83d85358472","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":528,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d3f94016-3184-4655-9128-1b80a680f1af","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why","page_number":529,"box":{"x":116,"y":87,"width":743,"height":12}},{"id":"a4fecef9-0644-43df-967f-349fd54f7886","block_type":"box","text":"they view these practices to be aligned with shareholders’ interests. We may vote against management","page_number":529,"box":{"x":116,"y":103,"width":772,"height":12}},{"id":"71ad8b3f-ff7d-4ccd-b4e5-4f19f4cee41d","block_type":"box","text":"proposals seeking capital-related authorities, or the election of the most senior independent director, if","page_number":529,"box":{"x":117,"y":118,"width":761,"height":12}},{"id":"3a119b2b-f7d3-44c6-a6e6-100657e177a7","block_type":"box","text":"we have concerns about a company’s approach. We may also support a shareholder proposal seeking","page_number":529,"box":{"x":116,"y":134,"width":768,"height":12}},{"id":"1406c1e2-9541-44b8-9825-57b479b8b6d6","block_type":"box","text":"conversion of shares with differentiated voting rights to a one-share, one-vote standard.","page_number":529,"box":{"x":116,"y":149,"width":655,"height":12}},{"id":"449ea963-bd3e-4f7c-885d-8da739ea162c","block_type":"box","text":"Share","page_number":529,"box":{"x":116,"y":180,"width":46,"height":10}},{"id":"1be4a932-8d19-492a-ae2b-7267d15611ca","block_type":"box","text":"issuance","page_number":529,"box":{"x":168,"y":180,"width":76,"height":10}},{"id":"d00abd86-ebcf-479a-bcf7-c750cb8d6514","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will","page_number":529,"box":{"x":116,"y":211,"width":741,"height":12}},{"id":"01b6a974-7195-4bcf-b6fa-5dd3a2b73b6e","block_type":"box","text":"generally support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent","page_number":529,"box":{"x":116,"y":227,"width":768,"height":12}},{"id":"5ac415b1-c224-44a7-b6c2-3c65aa0ebc91","block_type":"box","text":"pre-emptive rights. We consider it good practice for companies to seek regular approval of these","page_number":529,"box":{"x":117,"y":242,"width":720,"height":12}},{"id":"8d9bbdf7-0dcf-46a5-835d-cac3783a9b17","block_type":"box","text":"authorities to allow shareholders to take into consideration how prior authorities were used, as well as","page_number":529,"box":{"x":116,"y":258,"width":759,"height":11}},{"id":"3e0b51ae-6120-4c5b-a9c9-3be6bfe7951e","block_type":"box","text":"the current circumstances of the company and the market environment.","page_number":529,"box":{"x":116,"y":273,"width":536,"height":12}},{"id":"b38670bf-c53f-404c-89ec-1d0e2aa4ad35","block_type":"box","text":"Share buybacks","page_number":529,"box":{"x":116,"y":304,"width":133,"height":12}},{"id":"1a93b11c-aaef-4108-a706-b10eb3b91a16","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management","page_number":529,"box":{"x":116,"y":335,"width":746,"height":12}},{"id":"4eb5f12e-7fe2-4efa-992b-b799f82830f7","block_type":"box","text":"strategy and management’s determination of the appropriate balance between investment that","page_number":529,"box":{"x":116,"y":351,"width":706,"height":12}},{"id":"1fa06c01-8ce8-443b-a6b2-03ad9a778158","block_type":"box","text":"supports the long-term growth of the company and returning cash to investors. We also take into","page_number":529,"box":{"x":116,"y":366,"width":721,"height":12}},{"id":"0970cfb4-00fd-490d-b6f5-54f61b987299","block_type":"box","text":"consideration the effect of a buyback program on the company’s balance sheet and executive","page_number":529,"box":{"x":116,"y":382,"width":701,"height":12}},{"id":"11087edc-9f4f-48cc-bda6-0dc8df7d8aab","block_type":"box","text":"compensation arrangements and the price at which shares are repurchased relative to market price.","page_number":529,"box":{"x":116,"y":397,"width":748,"height":12}},{"id":"8283657a-4833-4bc7-a490-80bd14f40e09","block_type":"box","text":"We consider it good practice for companies to seek regular approval of these authorities to allow","page_number":529,"box":{"x":116,"y":413,"width":721,"height":12}},{"id":"43dfc78c-07ec-40b1-99c1-30ab729ded3d","block_type":"box","text":"shareholders to take into consideration how prior authorities were used, as well as the current","page_number":529,"box":{"x":116,"y":428,"width":700,"height":12}},{"id":"8673a189-50f2-403f-90dc-564dee717316","block_type":"box","text":"circumstances of the company and the market environment.","page_number":529,"box":{"x":116,"y":444,"width":451,"height":12}},{"id":"bec12c85-8616-40f8-901d-8e965a1f818c","block_type":"box","text":"Dividends","page_number":529,"box":{"x":117,"y":475,"width":84,"height":9}},{"id":"96766757-1911-4c65-992d-55eb55b03b6a","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further","page_number":529,"box":{"x":116,"y":506,"width":752,"height":12}},{"id":"2f898e90-79d7-424a-b065-ff524cd85bf0","block_type":"box","text":"clarification where a proposed dividend appears out of line with the company’s financial position.","page_number":529,"box":{"x":116,"y":521,"width":720,"height":12}},{"id":"6bca66b0-4cb6-4924-bb87-459aaec84e78","block_type":"box","text":"Differentiated voting rights","page_number":529,"box":{"x":117,"y":552,"width":219,"height":12}},{"id":"6e51230e-2a9d-4942-abeb-dd7da9e9b127","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same","page_number":529,"box":{"x":116,"y":583,"width":710,"height":12}},{"id":"e6e3e4c2-37fa-46b3-82c0-0ddf932b735e","block_type":"box","text":"economic exposure. Certain companies, particularly those new to public markets, could make the case","page_number":529,"box":{"x":116,"y":599,"width":768,"height":12}},{"id":"da371237-ad11-4256-abf0-65b9e82f3b56","block_type":"box","text":"to adopt a differentiated voting rights structure, or dual class stock. In those situations, we encourage","page_number":529,"box":{"x":116,"y":614,"width":755,"height":12}},{"id":"4738e5ad-d7a2-47ff-a400-8435a991a850","block_type":"box","text":"companies to evaluate and seek approval for their capital structure on a periodic basis.","page_number":529,"box":{"x":116,"y":630,"width":650,"height":12}},{"id":"f3f718ab-f773-4e52-8c07-6dd868cbf996","block_type":"box","text":"Transactions and special situations","page_number":529,"box":{"x":357,"y":661,"width":285,"height":12}},{"id":"dda119e5-01f5-402f-9d7c-861dd5e1f877","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own","page_number":529,"box":{"x":116,"y":692,"width":706,"height":12}},{"id":"53b530f3-79a7-4c9d-a8ff-10a5358de4c5","block_type":"box","text":"detailed analyses of proposals.","page_number":529,"box":{"x":116,"y":707,"width":229,"height":12}},{"id":"56d6e0be-8202-4e13-b8a4-296f1aa483ae","block_type":"box","text":"Mergers and acquisitions","page_number":529,"box":{"x":117,"y":738,"width":201,"height":12}},{"id":"922925d4-711d-4fc8-bacd-1af30c4dbb02","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as","page_number":529,"box":{"x":116,"y":769,"width":740,"height":12}},{"id":"ca0db328-36e7-47c4-b311-3cb7f9208248","block_type":"box","text":"minority shareholders. Management should provide an assessment of the proposed transaction’s","page_number":529,"box":{"x":117,"y":785,"width":719,"height":12}},{"id":"8d49674f-8fb0-4575-9185-51ed346da1d3","block_type":"box","text":"strategic and financial rationale, along with its execution and operational risks. We review each","page_number":529,"box":{"x":116,"y":800,"width":703,"height":12}},{"id":"f56b5807-5b76-4238-91ab-9c56e76701ee","block_type":"box","text":"transaction independently based on these factors and the degree to which the transaction enhances","page_number":529,"box":{"x":116,"y":816,"width":743,"height":12}},{"id":"0e4b323c-8418-4241-be7f-e2b8499c134d","block_type":"box","text":"shareholder value. The board might consider establishing an ad hoc transaction committee to","page_number":529,"box":{"x":116,"y":831,"width":699,"height":12}},{"id":"5769e8dd-08ff-49a0-a98b-66c2d3098c00","block_type":"box","text":"undertake an independent assessment of a significant merger or acquisition, in advance of making its","page_number":529,"box":{"x":117,"y":847,"width":757,"height":12}},{"id":"0f56f2ff-1849-49bd-9c77-ac4c7989f33d","block_type":"box","text":"recommendation to shareholders.","page_number":529,"box":{"x":117,"y":862,"width":254,"height":10}},{"id":"f3c687e3-bc89-4e55-b0d0-ee1ea05454b2","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":529,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"a3ccf88a-fae8-4339-bc9d-2447897e64f0","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":529,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"ea39c57c-fcf1-4e18-a1fe-82783231a92b","block_type":"box","text":"11","page_number":529,"box":{"x":866,"y":909,"width":15,"height":9}},{"id":"3643f586-04e2-429d-a5f1-43c26fd0a25e","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":529,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2b078d9a-be0c-4e10-b1e7-4668387f6f2e","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial","page_number":530,"box":{"x":116,"y":87,"width":703,"height":12}},{"id":"5ebdd400-700f-4ef5-a3dc-96bb2b2b1a4a","block_type":"box","text":"interests.","page_number":530,"box":{"x":117,"y":103,"width":72,"height":9}},{"id":"59fe836b-dff3-4771-b614-976ac3fa8a96","block_type":"box","text":"Anti-takeover defenses","page_number":530,"box":{"x":116,"y":134,"width":190,"height":9}},{"id":"3ba28d66-6c30-449b-9bd9-b3e333d18c6d","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":530,"box":{"x":117,"y":165,"width":757,"height":12}},{"id":"2f5ef5af-ef48-4108-9ea6-2352af86456d","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered","page_number":530,"box":{"x":116,"y":180,"width":731,"height":12}},{"id":"b2fe06de-336e-42fd-b54b-16590f4c3396","block_type":"box","text":"long-term shareholder value. By exception, a poison pill may be supported if its purpose is to delay a","page_number":530,"box":{"x":117,"y":196,"width":751,"height":12}},{"id":"3026bc84-e0e5-4c47-af91-7e84482b908b","block_type":"box","text":"takeover that is considered sub-optimal and enable management to seek an improved offer. Similarly,","page_number":530,"box":{"x":116,"y":211,"width":761,"height":12}},{"id":"39903e7a-d5ee-41a3-b006-18584de962fb","block_type":"box","text":"management could make the case to use a poison pill to block a shareholder activism campaign that","page_number":530,"box":{"x":117,"y":227,"width":751,"height":12}},{"id":"434a02d2-82d2-43e3-8fb2-bf6e12eefc90","block_type":"box","text":"may be counter to the interests of other investors. Defense mechanisms introduced in these","page_number":530,"box":{"x":117,"y":242,"width":687,"height":12}},{"id":"a06cef7b-2a7e-4430-b01f-349f445b8c2d","block_type":"box","text":"circumstances should be limited in term and threshold, and also be closely monitored by the","page_number":530,"box":{"x":116,"y":258,"width":688,"height":12}},{"id":"f7c81108-b6f3-4b1a-9e4f-33fdc791e616","block_type":"box","text":"independent members of the board. We consider it good practice for companies to put to a shareholder","page_number":530,"box":{"x":117,"y":273,"width":771,"height":12}},{"id":"f71b4e20-20f1-4fa7-acbf-acfd0f2f3632","block_type":"box","text":"vote any mechanisms expected to be in place for more than 12 months.","page_number":530,"box":{"x":116,"y":289,"width":538,"height":12}},{"id":"81595d37-20f3-4ff7-9c49-70f152a3a9e8","block_type":"box","text":"Shareholder activism","page_number":530,"box":{"x":116,"y":320,"width":175,"height":9}},{"id":"7fcb7ce9-faf0-4c4f-8a64-8b671fc9742a","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to","page_number":530,"box":{"x":116,"y":351,"width":732,"height":12}},{"id":"32178f8b-9669-4070-b6e0-af6ef4c367f9","block_type":"box","text":"understand their analysis and objectives, once they have publicly disclosed their campaign. We may","page_number":530,"box":{"x":117,"y":366,"width":748,"height":12}},{"id":"9758ad86-e7a3-49fa-abfd-020fbf2f3cdc","block_type":"box","text":"also engage with company management and possibly board members, especially those the activist","page_number":530,"box":{"x":116,"y":382,"width":741,"height":12}},{"id":"37c5f09c-574a-4a6a-9e24-5d742de63577","block_type":"box","text":"may be seeking to replace. In our assessment, we evaluate various factors, including the concerns","page_number":530,"box":{"x":117,"y":397,"width":737,"height":12}},{"id":"8e006bb8-e87a-462d-a6b8-4b7aab09ae80","block_type":"box","text":"raised by the activist and the case for change; the quality of both the activist’s and management’s","page_number":530,"box":{"x":117,"y":413,"width":728,"height":12}},{"id":"ca728b2d-5518-4475-a0bd-4bfadad23fe7","block_type":"box","text":"plans; and the qualifications of each party’s candidates. We evaluate each contested situation by","page_number":530,"box":{"x":117,"y":428,"width":723,"height":12}},{"id":"71b24dc0-678a-4287-9bf0-0d178cd3798d","block_type":"box","text":"assessing the potential financial outcome for our clients as minority shareholders.","page_number":530,"box":{"x":116,"y":444,"width":610,"height":12}},{"id":"ff461b95-27e8-4efa-82f6-83475b65e524","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent","page_number":530,"box":{"x":116,"y":475,"width":728,"height":12}},{"id":"494039f5-408b-4e09-a19c-12e9e82c9b26","block_type":"box","text":"judgment, or the relevant portfolio manager has determined that there is a case for change to enhance","page_number":530,"box":{"x":115,"y":490,"width":767,"height":12}},{"id":"14fa53eb-e9a5-49ae-b048-e183fa44539b","block_type":"box","text":"shareholder value, or if the incumbent board members do not demonstrate the relevant skills and","page_number":530,"box":{"x":116,"y":506,"width":725,"height":11}},{"id":"1ec685c4-0292-46df-8c0b-be7a6121a937","block_type":"box","text":"expertise or have a poor track record of protecting shareholders’ interests.","page_number":530,"box":{"x":116,"y":521,"width":556,"height":12}},{"id":"696f59f4-d18e-41a7-9cf1-bda83e3a9608","block_type":"box","text":"Significant shareholders and related party transactions","page_number":530,"box":{"x":116,"y":552,"width":446,"height":12}},{"id":"730385b6-45ca-45a0-9e17-12ecebd11e11","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":530,"box":{"x":117,"y":583,"width":768,"height":12}},{"id":"289bfc13-a444-4af6-a904-1e4bbb14de33","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":530,"box":{"x":117,"y":599,"width":534,"height":12}},{"id":"a987fbab-3c12-4059-af22-2b01b6b9bac8","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or","page_number":530,"box":{"x":116,"y":630,"width":751,"height":12}},{"id":"a2ef9a5e-67b1-4eca-adeb-23860ecf56cd","block_type":"box","text":"companies affiliated with the public company, to be disclosed in detail and conducted on terms similar","page_number":530,"box":{"x":116,"y":645,"width":760,"height":12}},{"id":"288866ce-7a36-49fc-99e6-023595ebf50b","block_type":"box","text":"to what would objectively have been agreed with a non-related party. In our view, such transactions","page_number":530,"box":{"x":116,"y":661,"width":737,"height":12}},{"id":"f46adee9-0c58-4901-ae44-30f6c0323d29","block_type":"box","text":"should be reviewed and approved by the independent members of the board, and if voted on, only","page_number":530,"box":{"x":116,"y":676,"width":729,"height":12}},{"id":"de0b6610-5017-485d-a6e2-bbdd12dec7a3","block_type":"box","text":"disinterested shareholders should vote.","page_number":530,"box":{"x":116,"y":692,"width":291,"height":9}},{"id":"c49be49f-75ad-4a3b-b322-5dc76ac116d6","block_type":"box","text":"Corporate reporting, risk management and audit","page_number":530,"box":{"x":307,"y":723,"width":385,"height":12}},{"id":"9850242f-aec6-4c48-ae41-9871280e473a","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s","page_number":530,"box":{"x":117,"y":754,"width":737,"height":12}},{"id":"908feee3-eb22-4241-984b-534644e3c003","block_type":"box","text":"strategy, its implementation and financial performance, as well as to assess the quality of management","page_number":530,"box":{"x":116,"y":769,"width":765,"height":12}},{"id":"fce8df7c-209e-4a60-a177-c6aa87f0c205","block_type":"box","text":"and operations and potential for the company to create shareholder value over time. We consider it","page_number":530,"box":{"x":116,"y":785,"width":736,"height":12}},{"id":"a77e857e-771f-4a68-959e-32664042326a","block_type":"box","text":"good practice for the board to oversee corporate reporting and the policies and procedures","page_number":530,"box":{"x":116,"y":800,"width":674,"height":12}},{"id":"e9cc46fa-23ac-4bd9-944e-a0f00d91f27e","block_type":"box","text":"underpinning the internal audit function and external audit.","page_number":530,"box":{"x":117,"y":816,"width":430,"height":12}},{"id":"63a18dc4-35a4-4e80-94fa-6ab40261be47","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other","page_number":530,"box":{"x":116,"y":847,"width":734,"height":12}},{"id":"87d97220-4386-4a6b-9f28-86eeb5895859","block_type":"box","text":"stakeholders, on its financial performance and position. It should provide an accurate and balanced","page_number":530,"box":{"x":116,"y":862,"width":742,"height":12}},{"id":"5cf3f2fa-d6d6-49fc-8a02-71655abb4438","block_type":"box","text":"assessment of the risks and opportunities the company faces in realizing its long-term strategy.","page_number":530,"box":{"x":116,"y":878,"width":712,"height":12}},{"id":"65130836-1752-4798-825a-38cae58f26e0","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":530,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"1fe9c803-36a1-425c-a0ef-74ebeaccd65f","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":530,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"ef58d7ab-802c-4848-86ca-068a5bee52fb","block_type":"box","text":"12","page_number":530,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"553c7870-c0d9-439c-ab79-7f38313a8b07","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":530,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d5741e21-d99e-487e-94e6-dfce13586f34","block_type":"box","text":"Accordingly, the assumptions made by management and reviewed by the auditor in preparing the","page_number":531,"box":{"x":116,"y":87,"width":729,"height":12}},{"id":"e571399c-a200-4f69-9f24-5fb3938ec188","block_type":"box","text":"financial statements should be reasonable and justified. Financial statements should be prepared in","page_number":531,"box":{"x":116,"y":102,"width":744,"height":13}},{"id":"2c1c8461-49c5-42e4-a373-db877723617d","block_type":"box","text":"accordance with globally developed reporting standards and any divergence from generally accepted","page_number":531,"box":{"x":116,"y":118,"width":755,"height":12}},{"id":"b99c2bf7-d50f-4157-8da9-775ce586ab62","block_type":"box","text":"accounting principles should be explained in detail and justified. Accounting restatements should be","page_number":531,"box":{"x":116,"y":134,"width":745,"height":12}},{"id":"9c7a76cd-7367-4f03-a6ef-86a2cb5128e1","block_type":"box","text":"explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":531,"box":{"x":116,"y":149,"width":638,"height":12}},{"id":"f273228e-1b46-4da3-8902-4d78d9dd0248","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":531,"box":{"x":117,"y":180,"width":769,"height":12}},{"id":"b69cdaa7-10c6-41a6-a03c-ad0a37adfacf","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction,","page_number":531,"box":{"x":117,"y":196,"width":737,"height":12}},{"id":"5090e909-dff2-41d2-9162-d38144bbbf50","block_type":"box","text":"non-financial information, internal control frameworks and Enterprise Risk Management systems. In","page_number":531,"box":{"x":117,"y":211,"width":743,"height":12}},{"id":"87ff7eb9-7603-494d-bccb-9575e4e96c3c","block_type":"box","text":"our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":531,"box":{"x":116,"y":227,"width":730,"height":12}},{"id":"da4e8033-9682-4549-9295-cc723710dcc0","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders. Audit committees","page_number":531,"box":{"x":116,"y":242,"width":767,"height":12}},{"id":"bbd28ce0-49b5-48ac-b305-4378121887c7","block_type":"box","text":"should have a procedure in place for assessing the independence of the auditor and the quality of the","page_number":531,"box":{"x":116,"y":258,"width":758,"height":12}},{"id":"37f74887-cdf6-4309-a376-512246814eee","block_type":"box","text":"external audit process annually.","page_number":531,"box":{"x":116,"y":273,"width":241,"height":12}},{"id":"59c84132-5056-4fd9-95bf-90aa5fa78e55","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to","page_number":531,"box":{"x":116,"y":304,"width":771,"height":12}},{"id":"b7ee9c0a-8947-400f-aedd-53cc69c793b2","block_type":"box","text":"how a company manages risks or generates revenue. BAIS finds it helpful to our understanding when","page_number":531,"box":{"x":117,"y":320,"width":758,"height":12}},{"id":"c6b7080d-3ed8-422b-a1a3-89c60111fa5d","block_type":"box","text":"companies provide robust, standardized disclosures on their material sustainability-related risks and","page_number":531,"box":{"x":116,"y":335,"width":747,"height":12}},{"id":"f9dc1918-c302-427a-9b03-7d00916b37a7","block_type":"box","text":"opportunities. The International Sustainability Standards Board (ISSB) is one entity working to meet","page_number":531,"box":{"x":116,"y":351,"width":743,"height":12}},{"id":"7fc02b85-6509-4e98-92ea-777f88b5bd3e","block_type":"box","text":"these objectives through its reporting standards, which may be helpful to companies in preparing such","page_number":531,"box":{"x":116,"y":366,"width":763,"height":12}},{"id":"f732d5a8-fbc6-4d7d-9efa-db5fc0d47ef3","block_type":"box","text":"reports.","page_number":531,"box":{"x":117,"y":382,"width":54,"height":12}},{"id":"046c9386-40b0-4eec-b169-bfa34b4a8163","block_type":"box","text":"9","page_number":531,"box":{"x":173,"y":382,"width":5,"height":6}},{"id":"cb4018de-c802-4b19-93f4-bb399a1f0d28","block_type":"box","text":"However, we do not mandate any specific disclosure framework, and note that companies in","page_number":531,"box":{"x":179,"y":382,"width":696,"height":12}},{"id":"84629aef-d759-48d0-9075-cfec4d7784ff","block_type":"box","text":"certain jurisdictions are subject to mandatory reporting requirements under standards specified by","page_number":531,"box":{"x":116,"y":397,"width":731,"height":12}},{"id":"7df7919e-56de-4638-bcbb-5ccb19182863","block_type":"box","text":"policy makers.","page_number":531,"box":{"x":117,"y":413,"width":105,"height":12}},{"id":"893d8219-ba93-4ca0-b37b-090ac4c16edc","block_type":"box","text":"10","page_number":531,"box":{"x":224,"y":413,"width":11,"height":6}},{"id":"5bc05b40-396c-4978-88b6-96c557f5f4c4","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":531,"box":{"x":117,"y":444,"width":765,"height":12}},{"id":"32f2173c-5a17-4bf4-850c-916e176c72bf","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for","page_number":531,"box":{"x":116,"y":459,"width":759,"height":12}},{"id":"b8b007b3-3776-47d3-ac37-1336454607f7","block_type":"box","text":"employees, and potentially other stakeholders, can be a useful mechanism for ensuring that senior","page_number":531,"box":{"x":116,"y":475,"width":738,"height":12}},{"id":"66475dbd-56d5-47ac-b72a-56c8b4de3395","block_type":"box","text":"management and the board are aware of potential misconduct or breaches in risk management and","page_number":531,"box":{"x":117,"y":490,"width":745,"height":12}},{"id":"fd53c425-b6db-467a-9b5c-21816621dc30","block_type":"box","text":"internal control processes.","page_number":531,"box":{"x":117,"y":506,"width":200,"height":12}},{"id":"2d294229-0f68-40ab-aad6-51ae1d15bec3","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in","page_number":531,"box":{"x":116,"y":537,"width":748,"height":12}},{"id":"aeaf807f-cb58-49db-9c5b-98d26319e730","block_type":"box","text":"the quality of corporate reporting. It is helpful when the audit report gives some insight into the scope","page_number":531,"box":{"x":116,"y":552,"width":752,"height":12}},{"id":"323b28df-0588-4704-b7c8-d9bbdeff5247","block_type":"box","text":"and focus of the audit, as well as any critical audit matters identified and how these were resolved. A","page_number":531,"box":{"x":116,"y":568,"width":751,"height":12}},{"id":"958581d5-eee7-452a-b64d-147dd01e3b3d","block_type":"box","text":"comprehensive and effective audit is time and resource intensive, and the audit fee should be","page_number":531,"box":{"x":116,"y":583,"width":700,"height":12}},{"id":"cdb7f2f3-29e3-48c9-af23-c3f1d955882d","block_type":"box","text":"commensurate. Fees paid to the audit firm for non-audit consulting should not exceed the audit fee to a","page_number":531,"box":{"x":116,"y":599,"width":771,"height":12}},{"id":"ef0b8379-e969-420f-9ff0-0b15639ad55d","block_type":"box","text":"degree that may prompt concerns about the independence of the audit. The audit committee should","page_number":531,"box":{"x":116,"y":614,"width":746,"height":12}},{"id":"6e7e03e1-559c-42c2-bb4d-72305e43fbfa","block_type":"box","text":"explain its position on auditor tenure and how it confirmed that the auditor remained independent.","page_number":531,"box":{"x":116,"y":630,"width":728,"height":12}},{"id":"788614bf-70e9-4bf2-8fb5-bd0186b24312","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or","page_number":531,"box":{"x":116,"y":661,"width":735,"height":12}},{"id":"aca8be99-ab81-4b0d-a153-16fdabd8d8c2","block_type":"box","text":"there are material misstatements in financial reports. In markets where relevant, we may vote against a","page_number":531,"box":{"x":116,"y":676,"width":766,"height":12}},{"id":"42a8d44e-44fa-46fd-aedb-c8dd0bbc99aa","block_type":"box","text":"proposal to approve the financial statements or the discharge of the board when we are concerned","page_number":531,"box":{"x":117,"y":692,"width":731,"height":12}},{"id":"19f79734-2e10-4902-a4da-0ed2c1f8df59","block_type":"box","text":"about the quality of corporate reporting or the audit. We may vote against proposals to appoint the","page_number":531,"box":{"x":116,"y":707,"width":728,"height":12}},{"id":"f06e6382-6d80-4a53-9641-f35ad27cb7ff","block_type":"box","text":"auditor, ratify the audit report, or approve the audit fee if we are concerned about the auditor’s","page_number":531,"box":{"x":116,"y":723,"width":697,"height":12}},{"id":"79f33162-62d6-475a-aade-18756b3bfc08","block_type":"box","text":"independence, the quality of the audit, or there are material misstatements in financial reports and the","page_number":531,"box":{"x":117,"y":738,"width":754,"height":12}},{"id":"ac9988d1-df1a-4021-b896-800896c92dc7","block_type":"box","text":"board has not established reasonable remediation plans.","page_number":531,"box":{"x":117,"y":754,"width":420,"height":12}},{"id":"96af341d-f0d5-410e-a886-0ffb0da8186e","block_type":"box","text":"9","page_number":531,"box":{"x":143,"y":815,"width":4,"height":5}},{"id":"cdf65550-0fc6-4cf8-8963-ed401de8766f","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards (IFRS)","page_number":531,"box":{"x":170,"y":815,"width":666,"height":10}},{"id":"97f6a5b5-4c41-4c82-b7fc-5757b6da9eef","block_type":"box","text":"Foundation. Please refer to the IFRS website to learn more about the framework and standards S1 “General","page_number":531,"box":{"x":171,"y":828,"width":641,"height":8}},{"id":"4a592ce6-584b-4b84-a199-f57c722f43b7","block_type":"box","text":"Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related Disclosures.”","page_number":531,"box":{"x":171,"y":841,"width":672,"height":9}},{"id":"fd44046e-ef73-4e5d-ae6a-4082db7971d6","block_type":"box","text":"10","page_number":531,"box":{"x":144,"y":854,"width":8,"height":5}},{"id":"cb2d215c-3f72-42aa-abad-0ce8d056ac38","block_type":"box","text":"See, for examples, https://www.ifrs.org/news-and-events/news/2025/06/ifrs-foundation-publishes-jurisdictional-profiles","page_number":531,"box":{"x":170,"y":854,"width":705,"height":9}},{"id":"43626973-6b5b-4fcf-a5b4-f965cf6f4725","block_type":"box","text":"issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company","page_number":531,"box":{"x":170,"y":867,"width":615,"height":9}},{"id":"657b07f8-78d9-4c48-ab8e-4b414428a6bb","block_type":"box","text":"reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en","page_number":531,"box":{"x":170,"y":880,"width":468,"height":9}},{"id":"c2ae94ff-10ea-48b9-a0b3-05c4dbd80c43","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":531,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"159546d1-012d-4b6f-a22e-396157031476","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":531,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"7fb7cce6-864d-45b6-9733-aef1a39ed8c4","block_type":"box","text":"13","page_number":531,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"6587cccf-2745-4b4a-a3bc-a1d011844ef0","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":531,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"717d43b6-9af1-4b65-b692-4bf922a7af09","block_type":"box","text":"Shareholder rights and protections","page_number":532,"box":{"x":360,"y":87,"width":285,"height":12}},{"id":"a00d2dba-6f89-400e-9743-9d766bed931f","block_type":"box","text":"General shareholder meetings","page_number":532,"box":{"x":116,"y":118,"width":247,"height":12}},{"id":"6b2b5748-ceea-4766-8ac9-4cf7cf68cb24","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine","page_number":532,"box":{"x":117,"y":149,"width":768,"height":12}},{"id":"a1b08bde-770e-4150-9c9e-833e266c61ef","block_type":"box","text":"items of business are discussed and voted on by shareholders in attendance or submitting proxy votes.","page_number":532,"box":{"x":117,"y":165,"width":771,"height":12}},{"id":"250af847-9121-4516-8c09-8515b34258dd","block_type":"box","text":"Companies should disclose materials relevant to the shareholder meeting sufficiently in advance so","page_number":532,"box":{"x":117,"y":180,"width":742,"height":12}},{"id":"a70feb26-b8a0-4eb7-9452-0284e7496a70","block_type":"box","text":"that shareholders can take them into consideration in their voting decisions. Many companies offer","page_number":532,"box":{"x":116,"y":196,"width":736,"height":12}},{"id":"866f0e42-0429-4887-9478-d052b91c6b44","block_type":"box","text":"shareholders the option of participating in the meeting virtually which, whilst welcome, should not limit","page_number":532,"box":{"x":116,"y":211,"width":758,"height":12}},{"id":"bdb6db8f-c227-4983-8567-1c705e37c05e","block_type":"box","text":"the rights of shareholders to participate as they would during an in-person meeting.","page_number":532,"box":{"x":116,"y":227,"width":622,"height":12}},{"id":"cde3b6c3-9d72-4ba7-a89e-259dbf5a3870","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are","page_number":532,"box":{"x":116,"y":258,"width":757,"height":12}},{"id":"b9ac7b0b-2755-467d-92f0-2c3394a06ab8","block_type":"box","text":"not provided in a timely manner or do not provide sufficient information for us to make an informed","page_number":532,"box":{"x":117,"y":273,"width":733,"height":12}},{"id":"48312571-d4c5-4dd2-9efd-6316e0f8e795","block_type":"box","text":"voting decision. We may vote against directors if the format of the shareholder meeting does not","page_number":532,"box":{"x":116,"y":289,"width":719,"height":12}},{"id":"49e08b86-7424-4b25-b5ac-d754c0d8114e","block_type":"box","text":"accommodate reasonable shareholder participation.","page_number":532,"box":{"x":116,"y":304,"width":392,"height":12}},{"id":"88d1aa81-c27a-4e32-a1f7-ba010806702b","block_type":"box","text":"Bylaw amendments","page_number":532,"box":{"x":117,"y":335,"width":161,"height":12}},{"id":"0c073e71-7166-4855-b624-dad66a378c50","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally","page_number":532,"box":{"x":116,"y":366,"width":753,"height":12}},{"id":"2a443f51-46c7-4269-a7eb-6801efcbbfe5","block_type":"box","text":"support those that are aligned with the interests of minority shareholders. Any material changes to the","page_number":532,"box":{"x":116,"y":382,"width":761,"height":12}},{"id":"a094847a-aa60-4889-8647-846b07281ac5","block_type":"box","text":"bylaws should be explained in detail and put to a shareholder vote.","page_number":532,"box":{"x":117,"y":397,"width":500,"height":12}},{"id":"8c82ab45-3ab3-4e43-89d6-19e778b2d3fd","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce","page_number":532,"box":{"x":116,"y":428,"width":753,"height":12}},{"id":"fa15caac-4e75-44de-987d-0231b09cee20","block_type":"box","text":"additional burdens. We may vote against directors if material changes are made to the bylaws without","page_number":532,"box":{"x":116,"y":444,"width":760,"height":12}},{"id":"07582287-b4d5-4eec-a509-5ce91963036e","block_type":"box","text":"shareholder approval.","page_number":532,"box":{"x":116,"y":459,"width":167,"height":12}},{"id":"466e4f7d-6821-40d1-812b-5c02afd35c35","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders,","page_number":532,"box":{"x":117,"y":490,"width":688,"height":12}},{"id":"6ebe34c5-db4c-442a-af3b-204febb57d2e","block_type":"box","text":"individually or as a group, with a meaningful shareholding, the right to call a special meeting of","page_number":532,"box":{"x":117,"y":506,"width":704,"height":12}},{"id":"d5ed5fd8-40d7-4b7b-951d-350dc25d7ade","block_type":"box","text":"shareholders. The shareholding required to exercise this right should balance its utility with the cost to","page_number":532,"box":{"x":116,"y":521,"width":761,"height":12}},{"id":"e208acec-6909-4c98-82d9-6f6ab9de5519","block_type":"box","text":"the company of holding special meetings.","page_number":532,"box":{"x":116,"y":537,"width":313,"height":12}},{"id":"58b0bfbd-a7df-48eb-a466-02d4c3067154","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders,","page_number":532,"box":{"x":117,"y":568,"width":688,"height":12}},{"id":"5c8a42de-35a8-4fe4-b5e1-588f75ff72d3","block_type":"box","text":"individually or as a group, with a meaningful shareholding, the right to nominate directors to the","page_number":532,"box":{"x":117,"y":583,"width":710,"height":12}},{"id":"6a7ed36f-fd53-4751-ba1d-d045855c1add","block_type":"box","text":"company’s board. The threshold for this right should be set so that shareholders can exercise it without","page_number":532,"box":{"x":116,"y":599,"width":770,"height":12}},{"id":"22942f39-32c7-4ab5-9cf7-c452007b63cd","block_type":"box","text":"being unduly disruptive to the board’s own nomination process.","page_number":532,"box":{"x":117,"y":614,"width":473,"height":12}},{"id":"441a38b4-8b7f-41d7-a00f-adcd5803ea6a","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability","page_number":532,"box":{"x":116,"y":645,"width":728,"height":12}},{"id":"60f7261a-1380-4bbf-b922-e27a35dc7576","block_type":"box","text":"mechanisms. We may vote for a shareholder proposal seeking the addition of either of these","page_number":532,"box":{"x":117,"y":661,"width":686,"height":12}},{"id":"627e3b2d-a033-43c4-ba71-bb0bb2b699c5","block_type":"box","text":"provisions to a company’s bylaws.","page_number":532,"box":{"x":117,"y":676,"width":252,"height":12}},{"id":"df4e8d17-90c3-46aa-ae3d-1e3b02f5950f","block_type":"box","text":"Change of domicile","page_number":532,"box":{"x":116,"y":707,"width":154,"height":12}},{"id":"b790e4e5-47b2-4d9b-9364-abda496c973e","block_type":"box","text":"We generally defer to management on proposals to change a company’s domicile as long as the","page_number":532,"box":{"x":116,"y":738,"width":717,"height":12}},{"id":"9103cbf1-3b65-4643-b647-0696935864e7","block_type":"box","text":"rationale for doing so is consistent with the company’s long-term strategy and business model and the","page_number":532,"box":{"x":117,"y":754,"width":756,"height":12}},{"id":"af165951-cb31-4287-9979-b566d24d5d5d","block_type":"box","text":"related costs are immaterial.","page_number":532,"box":{"x":117,"y":769,"width":209,"height":10}},{"id":"a131cf12-ec9b-4056-b5ee-af76a7b0531b","block_type":"box","text":"We may vote against directors or a proposal to change a company’s domicile where it does not seem","page_number":532,"box":{"x":116,"y":800,"width":751,"height":12}},{"id":"6be851f6-29f7-4717-9db7-0a013af765cd","block_type":"box","text":"aligned with our clients’ financial interests.","page_number":532,"box":{"x":116,"y":816,"width":311,"height":12}},{"id":"7b5d7be5-1141-4f19-8d04-ae5472ff2704","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":532,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"0b564506-4c81-42be-872f-29dfbf9780e7","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":532,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"d17ac668-0f66-4d1a-becf-baa9abfe2307","block_type":"box","text":"14","page_number":532,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"d3ea1a0f-75ab-40e5-a885-bf712c0bf389","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":532,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4e420e10-874e-4216-abd8-52e2ec05cb22","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":533,"box":{"x":116,"y":87,"width":504,"height":12}},{"id":"ed0153e5-9532-42ba-b98f-b54c7e55c8c7","block_type":"box","text":"Plans to materially change the nature of a company’s business or its purpose should be disclosed and","page_number":533,"box":{"x":117,"y":118,"width":762,"height":12}},{"id":"dc0adaef-3bb0-408e-a31c-6062f23956a0","block_type":"box","text":"explained in the context of long-term strategy and business dynamics. Such changes may significantly","page_number":533,"box":{"x":116,"y":134,"width":764,"height":12}},{"id":"a7605f2c-ad68-402b-bf2c-fc82d27718ea","block_type":"box","text":"alter an investor’s views on the suitability of a company for their investment strategy or portfolio.","page_number":533,"box":{"x":116,"y":149,"width":716,"height":12}},{"id":"b507695f-4073-4bc2-a1d0-61d4569aab42","block_type":"box","text":"Where relevant, we may vote against proposals to change a company’s purpose or the nature of its","page_number":533,"box":{"x":116,"y":180,"width":743,"height":12}},{"id":"83120b8a-6a78-44fd-8d0c-7a96b8eb2ef0","block_type":"box","text":"business if the board has not provided a credible argument for change.","page_number":533,"box":{"x":117,"y":196,"width":530,"height":12}},{"id":"f7568df0-434e-4e81-aa88-bc7fdc0832e1","block_type":"box","text":"Shareholder proposals","page_number":533,"box":{"x":409,"y":227,"width":187,"height":11}},{"id":"3695de98-5828-49f6-b332-215233fa2abc","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals","page_number":533,"box":{"x":116,"y":258,"width":756,"height":12}},{"id":"e9311228-8d8f-43a9-a6a8-227a178d86d3","block_type":"box","text":"to the general shareholder meeting asking a company to take a particular course of action subject to","page_number":533,"box":{"x":116,"y":273,"width":749,"height":12}},{"id":"d05d28bf-92d3-450b-8f8f-2cee1d82ee78","block_type":"box","text":"the proposal being supported by a majority of votes cast at the meeting. The topics raised can address","page_number":533,"box":{"x":116,"y":289,"width":767,"height":12}},{"id":"ae97daf8-08d9-4fd9-9d1f-be033264b844","block_type":"box","text":"a range of matters that may be relevant to a company’s business.","page_number":533,"box":{"x":116,"y":304,"width":492,"height":12}},{"id":"75ae987e-15cd-48bb-b691-c20d52477726","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":533,"box":{"x":116,"y":335,"width":767,"height":12}},{"id":"eef0297a-f6f5-4634-92f2-ce532b40e386","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with","page_number":533,"box":{"x":116,"y":351,"width":697,"height":12}},{"id":"0212bf14-4353-408c-a302-eeaf650859a3","block_type":"box","text":"shareholders’ interests, and what impact the proposal being acted upon might have on financial","page_number":533,"box":{"x":116,"y":366,"width":714,"height":12}},{"id":"bbd7a044-59f0-4042-990c-1d192cc57354","block_type":"box","text":"performance.","page_number":533,"box":{"x":117,"y":382,"width":103,"height":12}},{"id":"1888e834-261a-41ab-88d1-c672157ba9b8","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or","page_number":533,"box":{"x":116,"y":413,"width":711,"height":12}},{"id":"57a3ed46-2a9c-47cd-b5b2-5606f3066ed8","block_type":"box","text":"performance is to engage to understand the apparent difference in perspective. If we are concerned a","page_number":533,"box":{"x":117,"y":428,"width":760,"height":12}},{"id":"f626b4ce-8609-4b7d-97a8-7853b6480da6","block_type":"box","text":"company is not acting in shareholders’ financial interests, we may vote against the election of directors.","page_number":533,"box":{"x":116,"y":444,"width":772,"height":12}},{"id":"01ce0df7-74e4-4937-8c90-29576865dad4","block_type":"box","text":"We may support a relevant shareholder proposal if doing so is aligned with our clients’ financial","page_number":533,"box":{"x":116,"y":459,"width":712,"height":12}},{"id":"f831703f-10d7-485d-923c-4362878581d2","block_type":"box","text":"interests. We generally do not support shareholder proposals that are legally binding on the company,","page_number":533,"box":{"x":117,"y":475,"width":760,"height":12}},{"id":"3986a90e-65c6-4adc-a03c-db9c5f0c2753","block_type":"box","text":"seek to alter a company’s strategy or direct its operations, or are unrelated to how a company","page_number":533,"box":{"x":116,"y":490,"width":700,"height":12}},{"id":"7c5f2cdc-acfb-4cdd-aa47-717dd3ce9e50","block_type":"box","text":"manages risk or generates financial returns.","page_number":533,"box":{"x":117,"y":506,"width":331,"height":12}},{"id":"5cedb926-12d7-45a8-8a2a-c8df88f681e2","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place","page_number":533,"box":{"x":117,"y":537,"width":737,"height":12}},{"id":"f5f96f84-4143-4a2d-bf78-b432af34175f","block_type":"box","text":"restrictions and limitations on how we can interact with the companies in which we invest on behalf of","page_number":533,"box":{"x":117,"y":552,"width":755,"height":12}},{"id":"bf34a292-624c-4a8c-a753-52f1757ad998","block_type":"box","text":"our clients, including our ability to submit shareholder proposals. We do not submit shareholder","page_number":533,"box":{"x":116,"y":568,"width":712,"height":12}},{"id":"e4500034-baea-488b-badb-99c79d090f55","block_type":"box","text":"proposals but can vote, on behalf of clients who authorize us to do so, on proposals put forth by others.","page_number":533,"box":{"x":117,"y":583,"width":770,"height":12}},{"id":"5b8ea8ce-7ff6-489a-a1d3-fd1c1aa0597a","block_type":"box","text":"Corporate political activities","page_number":533,"box":{"x":387,"y":614,"width":230,"height":12}},{"id":"24deea93-84eb-4dfc-bf19-64c916cf1915","block_type":"box","text":"A corporation’s ability to engage in the policy process is subject to rules and regulations set by the","page_number":533,"box":{"x":116,"y":645,"width":733,"height":12}},{"id":"fb059f05-ded3-4ac4-a515-c9e68a66f510","block_type":"box","text":"jurisdictions in which they engage. When a corporation reports material financial risk related to policy","page_number":533,"box":{"x":115,"y":661,"width":749,"height":12}},{"id":"f56e41f0-4649-4243-ac9b-0ca6be3a8788","block_type":"box","text":"and or regulatory changes, BAIS may seek to understand how it is addressing the material risk","page_number":533,"box":{"x":116,"y":676,"width":703,"height":12}},{"id":"03e5fd9b-659f-428d-a90d-41200395af92","block_type":"box","text":"identified. We seek to understand how companies engage in corporate political activities and ensure","page_number":533,"box":{"x":117,"y":692,"width":743,"height":12}},{"id":"e310639b-abc2-42b4-a8fb-eec247551466","block_type":"box","text":"that their participation is consistent with their public statements on policy matters material to the","page_number":533,"box":{"x":116,"y":707,"width":709,"height":12}},{"id":"c022d7d4-9999-47c7-830d-0c7d740ac443","block_type":"box","text":"company’s long-term strategy. The board should be aware of the approach taken by management on","page_number":533,"box":{"x":116,"y":723,"width":750,"height":12}},{"id":"580626e3-252f-4d5c-9c26-23c2373bd079","block_type":"box","text":"corporate political activities as there can be reputational risks arising from inconsistencies between a","page_number":533,"box":{"x":116,"y":738,"width":746,"height":12}},{"id":"db6a2c83-c9ec-4f66-ba6f-edcf5f943f53","block_type":"box","text":"company’s policy engagement and stated policy positions. Companies should, as a minimum, meet all","page_number":533,"box":{"x":116,"y":754,"width":758,"height":12}},{"id":"e87ec2df-e7ed-45da-b952-81051adaddcf","block_type":"box","text":"regulatory disclosure requirements on political activities. We may engage a company where we would","page_number":533,"box":{"x":117,"y":769,"width":753,"height":12}},{"id":"5b0a1f7c-c4f6-41dd-8dba-06d02b15eaed","block_type":"box","text":"like to better understand its approach to policy engagement, where relevant.","page_number":533,"box":{"x":117,"y":785,"width":563,"height":12}},{"id":"926f7b6c-d627-4827-9a1d-b10a80fba12c","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their","page_number":533,"box":{"x":116,"y":816,"width":732,"height":12}},{"id":"fd11b504-9ca8-40c0-8bde-71cea5e8a29e","block_type":"box","text":"policy priorities and the policy positions of the trade associations of which they are active members and","page_number":533,"box":{"x":117,"y":831,"width":770,"height":12}},{"id":"42872c36-d31a-4a10-bff6-80481770764b","block_type":"box","text":"any engagements undertaken by trade associations on behalf of members.","page_number":533,"box":{"x":116,"y":847,"width":562,"height":12}},{"id":"5563f97e-c939-4eea-8bd4-5a6cb2277676","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":533,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"197f0bef-ec4a-4d27-97c3-a83e40c5181a","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":533,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"97c42c94-6648-4ec3-9a07-6ecc7fbfd946","block_type":"box","text":"15","page_number":533,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"ed17ea39-ca8e-420b-aad9-92664b88a0cd","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":533,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c0deee94-b4d8-47db-8486-7a958ff5f2f0","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s","page_number":534,"box":{"x":116,"y":87,"width":712,"height":12}},{"id":"f9a278b1-5eae-426c-9b4a-d295e94cf2bc","block_type":"box","text":"disclosures are insufficient to address the material risk it has identified.","page_number":534,"box":{"x":116,"y":102,"width":530,"height":10}},{"id":"ac1ce682-48eb-49ca-80ac-d07cd5ebb990","block_type":"box","text":"Material sustainability-related risks and opportunities","page_number":534,"box":{"x":287,"y":134,"width":431,"height":12}},{"id":"2df9c4a3-f706-4382-83d5-6bf0063c1dc6","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their","page_number":534,"box":{"x":116,"y":165,"width":751,"height":12}},{"id":"2e7e6680-68ab-4650-a064-87f0c9600524","block_type":"box","text":"business operations. In our experience, sustainability-related factors","page_number":534,"box":{"x":117,"y":180,"width":505,"height":12}},{"id":"a37ab919-73c5-4fb3-9d22-87c7789cdace","block_type":"box","text":"11","page_number":534,"box":{"x":624,"y":180,"width":9,"height":6}},{"id":"f423dc45-57dd-4b71-b3cf-86ca64113972","block_type":"box","text":"that are relevant to a company’s","page_number":534,"box":{"x":635,"y":180,"width":249,"height":12}},{"id":"b92573ee-5380-4685-a731-abf7eab306cc","block_type":"box","text":"business or material to its financial performance, are generally operational considerations embedded","page_number":534,"box":{"x":117,"y":196,"width":752,"height":12}},{"id":"eddc553f-ea57-4ab0-bf3c-bf0b2dfdd77f","block_type":"box","text":"into day-to-day management systems. Certain sustainability issues may also inform long-term strategic","page_number":534,"box":{"x":117,"y":211,"width":769,"height":12}},{"id":"09819e57-1a01-43ae-b965-94a028a6052c","block_type":"box","text":"planning, for example, investing in product innovation in anticipation of changing consumer demand or","page_number":534,"box":{"x":117,"y":227,"width":763,"height":12}},{"id":"d9cb7210-68f1-4345-8022-d915a6050807","block_type":"box","text":"adapting supply chains in response to changing regulatory requirements.","page_number":534,"box":{"x":116,"y":242,"width":546,"height":12}},{"id":"5d54bba3-ca48-4ae6-a2fc-96498f26710f","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business","page_number":534,"box":{"x":116,"y":273,"width":769,"height":12}},{"id":"8c2c396c-283e-4419-bc5b-5c1afc6d6a1a","block_type":"box","text":"relevant will vary by company business model, sector, key markets, and time horizon, amongst other","page_number":534,"box":{"x":117,"y":289,"width":751,"height":12}},{"id":"3abd0e01-0a5a-43ea-91f9-2a2303e01c42","block_type":"box","text":"considerations. From company disclosures and our engagement, we aim to understand how","page_number":534,"box":{"x":116,"y":304,"width":689,"height":12}},{"id":"64f05290-f424-4714-bf1d-acfec6dfd45d","block_type":"box","text":"management is identifying, assessing and integrating material sustainability-related risks and","page_number":534,"box":{"x":117,"y":320,"width":694,"height":12}},{"id":"488cce0c-ce30-4ab7-ac45-78a9d35d79cb","block_type":"box","text":"opportunities into their business decision-making and practices. Doing so helps us undertake a more","page_number":534,"box":{"x":116,"y":335,"width":752,"height":12}},{"id":"83aa4eb3-8f4d-48f5-9ff3-d6b99e1c6df2","block_type":"box","text":"holistic assessment of a company’s potential financial performance and the likely risk-adjusted returns","page_number":534,"box":{"x":117,"y":351,"width":761,"height":12}},{"id":"ac9d589e-75ec-419e-99f7-586664904fc1","block_type":"box","text":"of an investment.","page_number":534,"box":{"x":116,"y":366,"width":133,"height":10}},{"id":"3ee31245-ba2b-40c9-b247-61a20eb6a8c6","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about","page_number":534,"box":{"x":116,"y":397,"width":753,"height":12}},{"id":"1ebe1ae7-a659-4033-b421-c6879bb3a70e","block_type":"box","text":"how a company is managing or disclosing its approach to material sustainability-related risks that may","page_number":534,"box":{"x":117,"y":413,"width":761,"height":12}},{"id":"2becbf52-6f43-4b08-8e33-929afbff6e94","block_type":"box","text":"impact financial returns.","page_number":534,"box":{"x":117,"y":428,"width":181,"height":12}},{"id":"048a3a56-ead1-401a-84a9-f91bf120b30f","block_type":"box","text":"Key stakeholders","page_number":534,"box":{"x":431,"y":459,"width":143,"height":12}},{"id":"cb10a3a0-dc1f-48b2-9e96-e0e059cf552f","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various","page_number":534,"box":{"x":117,"y":490,"width":727,"height":12}},{"id":"76c04c50-4fca-465d-b4f1-a5ab3559fe14","block_type":"box","text":"parties on whom they depend for their success over time. It is for each company to determine their key","page_number":534,"box":{"x":117,"y":506,"width":766,"height":12}},{"id":"7808fa1b-08f5-4103-b40e-a8056ef6bc2e","block_type":"box","text":"stakeholders based on what is material to their business and long-term financial performance. For","page_number":534,"box":{"x":116,"y":521,"width":731,"height":12}},{"id":"50f338d8-7127-4595-9eec-055480ae981f","block_type":"box","text":"many companies, key stakeholders include employees, business partners (such as suppliers and","page_number":534,"box":{"x":117,"y":537,"width":726,"height":12}},{"id":"c80aa607-c001-4069-ab6a-21731fd16896","block_type":"box","text":"distributors), clients and consumers, regulators, and the communities in which they operate.","page_number":534,"box":{"x":116,"y":552,"width":687,"height":12}},{"id":"d76e7414-8eff-4ef1-9abb-0a0679bb67c2","block_type":"box","text":"Companies that appropriately balance the interests of investors and other stakeholders are, in our","page_number":534,"box":{"x":117,"y":568,"width":730,"height":12}},{"id":"232d6d8e-e71e-4d8d-bebc-4544cfb9ae23","block_type":"box","text":"experience, more likely to be financially resilient over time.","page_number":534,"box":{"x":116,"y":583,"width":438,"height":12}},{"id":"82048528-2319-4ef8-bf1a-f4a55cbaffaf","block_type":"box","text":"Climate and decarbonization investment objectives","page_number":534,"box":{"x":295,"y":614,"width":414,"height":12}},{"id":"466b470c-c113-4da8-a638-bc329b307380","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial","page_number":534,"box":{"x":117,"y":645,"width":737,"height":12}},{"id":"c6e7756e-83e2-493b-a5f2-25e88655ae81","block_type":"box","text":"objectives. Consistent with the objectives of those investment strategies, our stewardship activity in","page_number":534,"box":{"x":116,"y":661,"width":735,"height":12}},{"id":"33b825d9-4191-41ef-b1c6-3ced9cfebd27","block_type":"box","text":"relation to the holdings in those funds differs in some respects from BAIS’ benchmark guidelines, which","page_number":534,"box":{"x":117,"y":676,"width":765,"height":12}},{"id":"1bce84f7-cfaa-4eb0-8438-d0e9b5005a0e","block_type":"box","text":"are described above. Specifically, for those funds’ holdings, we look to investee companies to","page_number":534,"box":{"x":116,"y":692,"width":694,"height":12}},{"id":"d5127fbc-cc5f-47e5-86aa-542b50af773e","block_type":"box","text":"demonstrate that they are aligned with a decarbonization pathway that means their business model","page_number":534,"box":{"x":116,"y":707,"width":736,"height":12}},{"id":"d951fc51-1236-409a-ac02-05802551b081","block_type":"box","text":"would be viable in a low-carbon economy, i.e., one in which global temperature rise is limited to 1.5°C","page_number":534,"box":{"x":116,"y":723,"width":754,"height":12}},{"id":"185137da-33a2-4d11-9eec-f66ba0df9e33","block_type":"box","text":"11","page_number":534,"box":{"x":144,"y":776,"width":7,"height":5}},{"id":"08ee6ece-f026-4774-bcc7-0677cac50005","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in a","page_number":534,"box":{"x":171,"y":776,"width":691,"height":10}},{"id":"32d05459-aa1e-48f6-a574-debd2e3c38be","block_type":"box","text":"company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":534,"box":{"x":170,"y":789,"width":686,"height":10}},{"id":"7171f86a-160c-43ec-9ab5-ab90dc476d09","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":534,"box":{"x":170,"y":802,"width":682,"height":10}},{"id":"3b82fadb-6494-4d95-bb10-8399bff1c65d","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":534,"box":{"x":170,"y":815,"width":683,"height":10}},{"id":"ee540f14-7926-45f7-86e2-d258125af308","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will effectively","page_number":534,"box":{"x":170,"y":828,"width":708,"height":10}},{"id":"8d9f0930-a339-4099-b7be-8a617ec3ac81","block_type":"box","text":"evaluate and manage material sustainability-related risks and opportunities relevant to their businesses. Governance is","page_number":534,"box":{"x":170,"y":841,"width":707,"height":9}},{"id":"e107c642-6fe2-4ad4-ae7a-abb6d0c11b5b","block_type":"box","text":"the core means by which boards can oversee the creation of durable financial value over time. Appropriate risk","page_number":534,"box":{"x":170,"y":854,"width":658,"height":9}},{"id":"f42352b7-541e-45f3-a164-fea6807c3c34","block_type":"box","text":"oversight of business-relevant and material sustainability-related considerations is a component of a sound governance","page_number":534,"box":{"x":170,"y":867,"width":708,"height":9}},{"id":"7f29f515-9a9d-4986-b7ae-172719b4ab53","block_type":"box","text":"framework.","page_number":534,"box":{"x":170,"y":880,"width":65,"height":7}},{"id":"7e49dc04-59da-43f6-96d3-93aeba714da6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":534,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"4a909f2d-6a19-4b15-8163-023f9d361284","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":534,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"bce7cb41-1787-4057-97ba-a1e49036aa22","block_type":"box","text":"16","page_number":534,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"5c2d3348-e273-4e27-9f25-4b522aa8a5a8","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":534,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e0546763-6bff-4f11-8794-234fea93406f","block_type":"box","text":"above pre-industrial levels. In addition, clients in separately managed accounts may instruct BlackRock","page_number":535,"box":{"x":116,"y":87,"width":771,"height":12}},{"id":"a112326e-55db-47d5-8385-39be308e1c5e","block_type":"box","text":"to apply these guidelines to their holdings. Both in the case of funds and separately managed","page_number":535,"box":{"x":116,"y":102,"width":698,"height":13}},{"id":"420b7686-c1e1-498d-9298-432c079ada05","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable","page_number":535,"box":{"x":116,"y":118,"width":770,"height":12}},{"id":"4c064471-7f47-494a-be2b-5517bccba740","block_type":"box","text":"fund board or client.","page_number":535,"box":{"x":116,"y":134,"width":153,"height":9}},{"id":"142054d0-7237-4352-bfe8-69c0bc6d0089","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services","page_number":535,"box":{"x":116,"y":165,"width":766,"height":12}},{"id":"3386aa4d-c7a5-49bb-af6c-2e4f677dd841","block_type":"box","text":"that contribute to real world decarbonization or have a carbon intensive business model and face","page_number":535,"box":{"x":116,"y":180,"width":724,"height":10}},{"id":"783e0d78-53d3-45d5-af08-e2d8b9557a34","block_type":"box","text":"outsized impacts from the low carbon transition, based on reported and estimated scopes 1, 2, and 3","page_number":535,"box":{"x":116,"y":196,"width":754,"height":11}},{"id":"60fada3a-5e47-48a4-9717-af5ba7512a7b","block_type":"box","text":"greenhouse gas emissions. These companies should provide disclosures that set out their","page_number":535,"box":{"x":116,"y":211,"width":675,"height":12}},{"id":"ac88b63d-d945-4387-bb5c-65ad3f9b43f5","block_type":"box","text":"governance, strategy, risk management processes and metrics and targets relevant to","page_number":535,"box":{"x":116,"y":227,"width":646,"height":12}},{"id":"f7b7003e-d460-4b2a-aece-08106de69372","block_type":"box","text":"decarbonization. It is helpful to investors’ understanding when these disclosures include an explanation","page_number":535,"box":{"x":116,"y":242,"width":770,"height":12}},{"id":"95370947-1c3c-40fd-9f4e-782e2037d1c2","block_type":"box","text":"of the decarbonization scenarios a company is using in its near- and long-term planning, as well as its","page_number":535,"box":{"x":116,"y":258,"width":760,"height":12}},{"id":"bf2530d4-85e1-43df-bfb5-4d80887c083f","block_type":"box","text":"scope 1, scope 2 and material scope 3 greenhouse gas (GHG) emissions and reduction targets for","page_number":535,"box":{"x":116,"y":273,"width":739,"height":12}},{"id":"46f21335-4ece-4c81-b130-79459f82c60a","block_type":"box","text":"scope 1 and 2 emissions.","page_number":535,"box":{"x":116,"y":289,"width":194,"height":12}},{"id":"cd193979-4727-4397-8f38-71b67bf8255b","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against","page_number":535,"box":{"x":117,"y":320,"width":744,"height":12}},{"id":"068c1c51-b0d4-4ba8-be64-b26113e870a8","block_type":"box","text":"directors or support for a relevant shareholder proposal if a company does not appear to be adequately","page_number":535,"box":{"x":116,"y":335,"width":771,"height":12}},{"id":"9f8e0e5b-e3af-41cf-81ea-fa1a9e450be2","block_type":"box","text":"acting to address or disclosing material climate-related risks, consistent with the parameters set out in","page_number":535,"box":{"x":116,"y":351,"width":761,"height":12}},{"id":"0b32abc4-48bf-4f56-b5ad-05ee1f0015bc","block_type":"box","text":"these climate- and decarbonization-specific guidelines. We may recommend supporting shareholder","page_number":535,"box":{"x":116,"y":366,"width":749,"height":12}},{"id":"8aa8274d-537a-4680-8786-5cb968ef8a92","block_type":"box","text":"proposals seeking information relevant to a company’s stated low-carbon transition strategy or targets","page_number":535,"box":{"x":117,"y":382,"width":760,"height":12}},{"id":"dbad0213-d93c-43dc-bceb-35feda551fc1","block_type":"box","text":"that the company does not currently provide and that would be helpful to investment decision-making.","page_number":535,"box":{"x":116,"y":397,"width":760,"height":12}},{"id":"ea3ba6b3-b152-40a9-b4ee-f16ea057f09b","block_type":"box","text":"We would not recommend support for shareholder proposals that seek to constrain board or","page_number":535,"box":{"x":116,"y":413,"width":689,"height":12}},{"id":"ad8d3226-3b6b-4cd1-815a-362b1a82bc0c","block_type":"box","text":"management decision-making or direct specific business or strategic decisions. As under the BAIS","page_number":535,"box":{"x":117,"y":428,"width":736,"height":12}},{"id":"e6b8812a-4729-4f5a-a17b-6be8acfa7d20","block_type":"box","text":"benchmark approach, the active portfolio managers are ultimately responsible for voting consistent","page_number":535,"box":{"x":117,"y":444,"width":737,"height":12}},{"id":"7dfbac30-6c7a-467c-87c6-a2645d1b455d","block_type":"box","text":"with their investment mandate and fund objectives. For the funds and accounts in scope, voting on","page_number":535,"box":{"x":116,"y":459,"width":736,"height":12}},{"id":"c8364640-6b59-43aa-af3f-cf34281dc982","block_type":"box","text":"matters not related to climate risk and the energy transition is undertaken in line with BAIS’ benchmark","page_number":535,"box":{"x":117,"y":475,"width":765,"height":12}},{"id":"a4297f49-2342-4e2d-83e1-5a28059316d5","block_type":"box","text":"guidelines.","page_number":535,"box":{"x":116,"y":490,"width":85,"height":12}},{"id":"3547c8b6-cecc-41ee-8ba2-83a09f5f2083","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":535,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"574de226-9d40-4e47-8e7f-42049544dcbc","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":535,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"c0021532-04d2-46ca-a205-b0fa04175790","block_type":"box","text":"17","page_number":535,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"d7f663cc-a110-466c-b5fa-6a3c5da9e83b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":535,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"35d14790-054c-4f6a-a202-9d486a5925e9","block_type":"box","text":"Appendix 1: How we fulfil and oversee our investment stewardship responsibilities","page_number":536,"box":{"x":116,"y":87,"width":668,"height":12}},{"id":"1d02bfbd-39cc-4c1d-bf87-f3e7288ab9c5","block_type":"box","text":"Oversight","page_number":536,"box":{"x":116,"y":118,"width":83,"height":12}},{"id":"06d91ca6-fd7a-4825-a1a9-ae0e5bc41628","block_type":"box","text":"The Global Head of BAIS has primary oversight of and responsibility for the team’s activities, including","page_number":536,"box":{"x":116,"y":149,"width":764,"height":12}},{"id":"20454d2e-8ee2-4191-93be-a97a873ea7bb","block_type":"box","text":"voting in accordance with the BlackRock Active Investment Stewardship Global Engagement and","page_number":536,"box":{"x":116,"y":165,"width":726,"height":12}},{"id":"07b8ab60-f3ee-4947-bf0a-411bed50422c","block_type":"box","text":"Voting Guidelines (the “Guidelines”), which require the application of professional judgment and","page_number":536,"box":{"x":116,"y":180,"width":714,"height":12}},{"id":"be54188b-2740-456f-a5a1-83e657edb8a3","block_type":"box","text":"consideration of each company’s unique circumstances, as well as input from active investors. BAIS is","page_number":536,"box":{"x":116,"y":196,"width":765,"height":12}},{"id":"fea5ba23-2704-4442-8093-eb5a05391ac3","block_type":"box","text":"independent from BlackRock Investment Stewardship in our engagement and voting activities,","page_number":536,"box":{"x":117,"y":211,"width":704,"height":12}},{"id":"04005968-bed8-4550-9e34-aaa75c057ab8","block_type":"box","text":"reporting lines, and oversight.","page_number":536,"box":{"x":117,"y":227,"width":224,"height":12}},{"id":"174894e9-5505-484a-869e-a18c26f1aafc","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders","page_number":536,"box":{"x":116,"y":258,"width":765,"height":11}},{"id":"28c608bf-f827-4a5a-b9a2-b372e256896b","block_type":"box","text":"in BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s","page_number":536,"box":{"x":117,"y":273,"width":742,"height":12}},{"id":"83b25cf1-a77b-4c78-b326-81c9dd742143","block_type":"box","text":"approach to investment stewardship on non-index equity investment strategies. The Group may advise","page_number":536,"box":{"x":116,"y":289,"width":769,"height":12}},{"id":"35c3bf5f-63fd-459b-a3ea-3b6dce5c7332","block_type":"box","text":"on and review amendments to BAIS’ policies and practices. It does not determine voting decisions,","page_number":536,"box":{"x":116,"y":304,"width":739,"height":12}},{"id":"8b9c8a24-5079-48af-8fa7-356d1bef3433","block_type":"box","text":"which are the responsibility of BAIS and the relevant active equity investors.","page_number":536,"box":{"x":116,"y":320,"width":568,"height":12}},{"id":"6535c755-6eda-4abe-a811-f5c3c85d2266","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues,","page_number":536,"box":{"x":117,"y":351,"width":721,"height":12}},{"id":"4e882b2f-28e0-410c-b7be-44937c8195d8","block_type":"box","text":"executes proxy votes, and conducts vote operations (including maintaining records of votes cast) in a","page_number":536,"box":{"x":116,"y":366,"width":757,"height":12}},{"id":"b3be7e6f-f981-4d8f-8cde-9216838680a7","block_type":"box","text":"manner consistent with the Guidelines. BAIS also conducts research on corporate governance issues","page_number":536,"box":{"x":117,"y":382,"width":757,"height":12}},{"id":"f8947797-194e-4d50-b1d8-a082262ce397","block_type":"box","text":"and participates in industry discussions to contribute to and keep abreast of important developments in","page_number":536,"box":{"x":116,"y":397,"width":768,"height":12}},{"id":"ebf5ce95-0e7d-4a6f-a507-b2547df73228","block_type":"box","text":"the corporate governance field. BAIS may use third parties for certain of the foregoing activities and","page_number":536,"box":{"x":116,"y":413,"width":744,"height":12}},{"id":"2c27f49c-cd49-4ac3-88c4-e3ee135cdb4e","block_type":"box","text":"performs oversight of those third parties (see “Use and oversight of third-party vote services providers”","page_number":536,"box":{"x":117,"y":428,"width":765,"height":12}},{"id":"bf747e88-be75-4a5e-84f0-2c8c11e038fd","block_type":"box","text":"below).","page_number":536,"box":{"x":117,"y":444,"width":58,"height":12}},{"id":"bf542f1e-8ec6-45dc-be4f-3b31b791cfcd","block_type":"box","text":"Voting guidelines and vote execution","page_number":536,"box":{"x":116,"y":475,"width":302,"height":12}},{"id":"0d30b3a0-a4b6-459f-8402-0d4c53bca5b9","block_type":"box","text":"BlackRock votes on proxy issues when our clients authorize us to do so. We carefully consider the","page_number":536,"box":{"x":117,"y":506,"width":735,"height":12}},{"id":"539bab96-5960-4ebc-91a7-253244c8dd9b","block_type":"box","text":"voting items submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have","page_number":536,"box":{"x":116,"y":521,"width":728,"height":12}},{"id":"5119602a-d43d-4bb4-aa9f-5bff6f0da06c","block_type":"box","text":"voting authority. BlackRock votes (or refrains from voting) for each Fund for which we have voting","page_number":536,"box":{"x":116,"y":537,"width":730,"height":12}},{"id":"51ea96f9-a171-472f-9683-114fc0e8c800","block_type":"box","text":"authority based on our evaluation of the alignment of the voting items with the long-term economic","page_number":536,"box":{"x":116,"y":552,"width":734,"height":12}},{"id":"2e6276d8-1f61-4bfc-bedb-194927480c38","block_type":"box","text":"interests of our clients, in the exercise of our independent business judgment, and without regard to the","page_number":536,"box":{"x":117,"y":568,"width":771,"height":12}},{"id":"e38bf718-20c9-434d-8aa2-c74aa58c283d","block_type":"box","text":"relationship of the issuer (or any shareholder proponent or dissident shareholder) to the Fund, the","page_number":536,"box":{"x":117,"y":583,"width":730,"height":12}},{"id":"90114fa5-d8b6-4bcc-932a-9622a33ca25e","block_type":"box","text":"Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":536,"box":{"x":117,"y":599,"width":754,"height":12}},{"id":"c7432678-9c8e-411a-9e4e-5122fcccdeb8","block_type":"box","text":"management policies and procedures,” below).","page_number":536,"box":{"x":117,"y":614,"width":353,"height":12}},{"id":"1fb766cd-eeda-42c3-8763-2fedcf399d47","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the","page_number":536,"box":{"x":116,"y":645,"width":759,"height":12}},{"id":"fb984f66-2128-41c8-a0d0-990706d1f8f5","block_type":"box","text":"Guidelines, although portfolio managers have the right to vote differently on their holdings if they","page_number":536,"box":{"x":117,"y":661,"width":713,"height":12}},{"id":"2602e8d5-be68-4427-b1c5-4a4172b3b499","block_type":"box","text":"determine doing so is more aligned with the investment objective and financial interests of clients","page_number":536,"box":{"x":116,"y":676,"width":719,"height":12}},{"id":"c0f97f12-241f-4614-9e97-dfc5391f347c","block_type":"box","text":"invested in the funds they manage.","page_number":536,"box":{"x":117,"y":692,"width":258,"height":12}},{"id":"356b7a3a-b552-4767-aefb-62959fd05692","block_type":"box","text":"The Guidelines are not intended to be exhaustive. BAIS applies the Guidelines on a case-by-case","page_number":536,"box":{"x":116,"y":723,"width":726,"height":12}},{"id":"afd03f4f-5398-4dd2-ae24-80bc0a59e92f","block_type":"box","text":"basis, in the context of the individual circumstances of each company and the specific issue under","page_number":536,"box":{"x":117,"y":738,"width":728,"height":12}},{"id":"4c905839-5082-42eb-a812-108617a0a8e5","block_type":"box","text":"review. As such, the Guidelines do not indicate how BAIS will vote in every instance. Rather, they","page_number":536,"box":{"x":117,"y":754,"width":723,"height":12}},{"id":"2a4fe5ed-7c08-4d99-8797-ed1f923c4793","block_type":"box","text":"reflect our view about corporate governance issues generally, and provide insight into how we typically","page_number":536,"box":{"x":117,"y":769,"width":761,"height":12}},{"id":"4ef2a74b-bae7-49ce-8197-70eb3f2c203e","block_type":"box","text":"approach issues that are commonly put to a shareholder vote. The Guidelines are reviewed annually","page_number":536,"box":{"x":116,"y":785,"width":747,"height":12}},{"id":"295f8d5a-af4d-43a9-9fb4-4cd86e67c005","block_type":"box","text":"and updated as necessary to reflect changes in market practices, developments in corporate","page_number":536,"box":{"x":116,"y":800,"width":688,"height":12}},{"id":"fd54ae8a-8d44-415b-808d-917c66dfe124","block_type":"box","text":"governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":536,"box":{"x":116,"y":816,"width":760,"height":12}},{"id":"59ee4de3-d64f-4dec-8775-1ed2787f4f32","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":536,"box":{"x":116,"y":831,"width":751,"height":12}},{"id":"5cf56f35-4c9d-492d-9b6c-a9b4422f342c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":536,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"c113e141-90ad-400d-8461-3265a6d761a4","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":536,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"e5436633-f965-4be6-92d3-02d923f5012a","block_type":"box","text":"18","page_number":536,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"45bfba75-ac49-4e42-8e21-beb911dd46a4","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":536,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"67d7b060-16a7-4830-8bea-8652523030a0","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such","page_number":537,"box":{"x":117,"y":87,"width":740,"height":12}},{"id":"62c6d479-5d83-45f6-abfc-809d65a9a2eb","block_type":"box","text":"proxies, as well as the desirability of voting such proxies. These issues include, but are not limited to: i)","page_number":537,"box":{"x":117,"y":102,"width":768,"height":13}},{"id":"cfa5abd4-a773-4981-9c51-2a8e8da1bd5f","block_type":"box","text":"untimely notice of shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii)","page_number":537,"box":{"x":117,"y":118,"width":735,"height":12}},{"id":"ab75e610-d287-4c0e-bd1e-bad5c38068db","block_type":"box","text":"requirements to vote proxies in person; iv) “share-blocking” (requirements that investors who exercise","page_number":537,"box":{"x":117,"y":134,"width":759,"height":12}},{"id":"3cfb4876-03ab-4bf1-ab5d-43c93df168df","block_type":"box","text":"their voting rights surrender the right to dispose of their holdings from the point at which votes are","page_number":537,"box":{"x":116,"y":149,"width":728,"height":12}},{"id":"835a3bb4-75a0-4d93-90cb-d3f115c06b0a","block_type":"box","text":"submitted until after the after the shareholder meeting has occurred); v) potential difficulties in","page_number":537,"box":{"x":116,"y":165,"width":700,"height":12}},{"id":"2051d793-497d-4fda-a696-c55f09564b73","block_type":"box","text":"translating the proxy; vi) regulatory constraints; and vii) requirements to provide local agents with","page_number":537,"box":{"x":116,"y":180,"width":723,"height":12}},{"id":"835a31a7-42cc-41f6-a080-fdec9940a8b3","block_type":"box","text":"powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":537,"box":{"x":117,"y":196,"width":706,"height":12}},{"id":"f5909952-0273-4882-a7a5-6b080bd9cb20","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":537,"box":{"x":116,"y":211,"width":742,"height":12}},{"id":"27e9978d-269a-4f9c-bc22-73f984601430","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine","page_number":537,"box":{"x":117,"y":242,"width":759,"height":12}},{"id":"28b9b620-df5f-4337-bf88-39a3a3f72c9a","block_type":"box","text":"that it is generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full","page_number":537,"box":{"x":116,"y":258,"width":723,"height":12}},{"id":"6cd98eb8-1e62-4a3c-b2f8-f350199eafb4","block_type":"box","text":"allocation) if the costs (including but not limited to opportunity costs associated with share-blocking","page_number":537,"box":{"x":116,"y":273,"width":737,"height":12}},{"id":"28fe41c9-8420-4a78-8642-9c3cc4419c99","block_type":"box","text":"constraints) associated with exercising a vote are expected to outweigh the benefit the client would","page_number":537,"box":{"x":116,"y":289,"width":739,"height":12}},{"id":"dcebc9cb-3c43-493f-aa54-b9c2e667de7b","block_type":"box","text":"derive by voting on the proposal.","page_number":537,"box":{"x":116,"y":304,"width":248,"height":12}},{"id":"93cd7417-0a9e-43d6-8a96-cf01e5edeab5","block_type":"box","text":"Voting Choice","page_number":537,"box":{"x":116,"y":335,"width":118,"height":12}},{"id":"42b01de7-ecde-4ba1-84d8-569a94fa8679","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to","page_number":537,"box":{"x":117,"y":366,"width":733,"height":12}},{"id":"52c53941-b80c-4776-95d7-22bd9a179968","block_type":"box","text":"participate in the proxy voting process where legally and operationally viable.","page_number":537,"box":{"x":117,"y":382,"width":575,"height":12}},{"id":"071ff080-c5c1-443f-92d0-19f553f3c84f","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in","page_number":537,"box":{"x":116,"y":413,"width":748,"height":12}},{"id":"c895dba5-bbcd-4e8a-8580-27f1935e50de","block_type":"box","text":"the U.S., UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In","page_number":537,"box":{"x":116,"y":428,"width":716,"height":12}},{"id":"7a9f7729-010d-4928-8df8-79c405bdd529","block_type":"box","text":"addition, institutional clients in separately managed accounts (SMAs) are eligible for BlackRock Voting","page_number":537,"box":{"x":116,"y":444,"width":764,"height":12}},{"id":"8850c627-4be7-4edd-9830-4af3de7acd82","block_type":"box","text":"Choice regardless of their investment strategies.","page_number":537,"box":{"x":117,"y":459,"width":357,"height":12}},{"id":"2fc59225-3073-45af-b4c8-5df509066604","block_type":"box","text":"12","page_number":537,"box":{"x":477,"y":459,"width":11,"height":6}},{"id":"3e6bea12-53d5-493a-9d1d-be2d2f0e8e2e","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently","page_number":537,"box":{"x":116,"y":490,"width":740,"height":12}},{"id":"9df09b5e-c720-44b2-b829-e4c3eb19e7dc","block_type":"box","text":"depending on whether our clients have authorized BAIS to vote on their behalf, have authorized","page_number":537,"box":{"x":116,"y":506,"width":715,"height":12}},{"id":"87be48b5-9cbf-4ab5-9b49-7a1b7dd0e441","block_type":"box","text":"BlackRock to vote in accordance with a third-party policy, or have elected to vote shares in accordance","page_number":537,"box":{"x":117,"y":521,"width":769,"height":12}},{"id":"503b1c74-c710-48f9-bc1e-127ec1c0a07f","block_type":"box","text":"with their own policy. Our clients have greater control over proxy voting because of Voting Choice.","page_number":537,"box":{"x":116,"y":537,"width":727,"height":12}},{"id":"17cf63f8-6877-47d8-bdd5-76355afe56f3","block_type":"box","text":"13","page_number":537,"box":{"x":846,"y":537,"width":10,"height":6}},{"id":"61cded71-43af-4e3b-9e53-1929014ee43a","block_type":"box","text":"Use and oversight of third-party vote services providers","page_number":537,"box":{"x":117,"y":568,"width":452,"height":12}},{"id":"8911378b-dfc3-4de2-8be1-ca5191c8ee73","block_type":"box","text":"Third-party vote services providers — or proxy research firms — provide research and","page_number":537,"box":{"x":116,"y":599,"width":646,"height":12}},{"id":"3095de3a-38e5-468a-8da3-1717d6a0a684","block_type":"box","text":"recommendations on proxy votes, as well as voting infrastructure. BlackRock contracts primarily with","page_number":537,"box":{"x":117,"y":614,"width":752,"height":12}},{"id":"54f5bb9a-9e12-4c22-ada5-fb853d47ee6d","block_type":"box","text":"the vote services provider ISS and leverages its online platform to supply research and support voting,","page_number":537,"box":{"x":116,"y":630,"width":765,"height":12}},{"id":"63470366-db52-4318-a30a-d84e4aba283c","block_type":"box","text":"record keeping, and reporting processes. We also use Glass Lewis’ research and analysis as an input","page_number":537,"box":{"x":117,"y":645,"width":761,"height":12}},{"id":"0f28cdbb-d779-42ff-95f0-25f0a8b873b6","block_type":"box","text":"into our voting process. It is important to note that, although proxy research firms provide important","page_number":537,"box":{"x":117,"y":661,"width":733,"height":12}},{"id":"14d113a7-583f-41e2-b7b5-d27a7cd045e3","block_type":"box","text":"data and analysis, BAIS does not rely solely on their information or follow their voting","page_number":537,"box":{"x":116,"y":676,"width":629,"height":12}},{"id":"75e8a310-fb44-4197-bf71-928fa5602b04","block_type":"box","text":"recommendations. A company’s disclosures, our engagements and voting, investment colleagues’","page_number":537,"box":{"x":117,"y":692,"width":728,"height":12}},{"id":"925756a5-224c-4e0d-913d-3263efdbf9de","block_type":"box","text":"insights and our Guidelines are important inputs into our voting decisions on behalf of clients.","page_number":537,"box":{"x":117,"y":707,"width":689,"height":12}},{"id":"52bdbbf7-4d12-4c7d-946f-86a64ea7902a","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to","page_number":537,"box":{"x":117,"y":738,"width":722,"height":12}},{"id":"d59838b5-aaaf-402f-8171-a52e581b6bb4","block_type":"box","text":"streamline the voting process by making voting recommendations based on BAIS’ Guidelines when the","page_number":537,"box":{"x":116,"y":754,"width":765,"height":12}},{"id":"32d771f3-3c8e-4b79-8d65-20bbf45af0d3","block_type":"box","text":"items on a shareholder meeting agenda are routine. Agenda items that are not routine are referred","page_number":537,"box":{"x":117,"y":769,"width":730,"height":12}},{"id":"d1c38f78-6dda-4eaa-9ef3-d1f187adedc8","block_type":"box","text":"back to BAIS to assess, escalate as necessary to the relevant portfolio managers and vote. BAIS","page_number":537,"box":{"x":117,"y":785,"width":719,"height":12}},{"id":"e076f57d-bb88-4ac4-aaea-43abfa8cd75e","block_type":"box","text":"reviews and can override the recommendations of the vote services provider at any time prior to the","page_number":537,"box":{"x":117,"y":800,"width":739,"height":12}},{"id":"40f94c75-34e4-4b6f-b55f-1aa83ee79ed7","block_type":"box","text":"12","page_number":537,"box":{"x":144,"y":841,"width":8,"height":5}},{"id":"37885a6e-2edc-45ea-b14c-4d39d4f67bbb","block_type":"box","text":"With Voting Choice, SMAs have the ability to select from a set of voting policies from third-party proxy advisers the","page_number":537,"box":{"x":170,"y":841,"width":679,"height":9}},{"id":"64bcd5f5-771d-4cb5-8998-3937a364e33b","block_type":"box","text":"policy that best aligns with their views and preferences. BlackRock can then use its proxy voting infrastructure to cast","page_number":537,"box":{"x":170,"y":854,"width":695,"height":9}},{"id":"7463c789-556b-48ca-a60a-bfd88e7ed189","block_type":"box","text":"votes based on the client’s selected voting policy.","page_number":537,"box":{"x":170,"y":867,"width":292,"height":9}},{"id":"ba973370-132d-42af-ae7b-ffacb6fffe26","block_type":"box","text":"13","page_number":537,"box":{"x":144,"y":880,"width":8,"height":5}},{"id":"4019a94e-a40a-4b68-8dd0-e6d51ecde04c","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":537,"box":{"x":171,"y":880,"width":678,"height":9}},{"id":"7dfd4023-3c87-4f06-a245-1cb6de78f95f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":537,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"7e3e631d-0e77-4b40-9f42-16cb169f7475","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":537,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"d256367e-c378-49e2-9d01-feebbdb119f2","block_type":"box","text":"19","page_number":537,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"f746c041-671d-4244-b2f1-3b8dcb6e0619","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":537,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2e6473c8-b775-43c3-abaf-2e41e165060c","block_type":"box","text":"vote deadline. Both BAIS and the vote services provider actively monitor securities filings, research","page_number":538,"box":{"x":116,"y":87,"width":741,"height":12}},{"id":"9bafda6f-cad8-47cb-b823-922d375f1425","block_type":"box","text":"reports, company announcements, and direct communications from companies to ensure awareness","page_number":538,"box":{"x":117,"y":102,"width":753,"height":13}},{"id":"0d1719a2-dd8e-4c34-a6b9-ad637c05f1ed","block_type":"box","text":"of supplemental disclosures and proxy materials that may require a modification of votes.","page_number":538,"box":{"x":116,"y":118,"width":667,"height":12}},{"id":"35c84c69-9c4f-403d-a8a5-92cada32c475","block_type":"box","text":"BAIS closely monitors the third-party vote services providers we contract with to ensure that they are","page_number":538,"box":{"x":117,"y":149,"width":751,"height":12}},{"id":"02c3ffec-76fc-4163-991c-c1bdde2de8b3","block_type":"box","text":"meeting our service level expectations and have effective policies and procedures in place to manage","page_number":538,"box":{"x":117,"y":165,"width":759,"height":12}},{"id":"6156db52-e1f0-4d80-b72d-c9ada380a75d","block_type":"box","text":"potential conflicts of interest. 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Such influence might stem from any relationship between the investee company (or any","page_number":538,"box":{"x":116,"y":289,"width":767,"height":12}},{"id":"28726130-0462-4217-a1f1-7b0f665b65af","block_type":"box","text":"shareholder proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a","page_number":538,"box":{"x":116,"y":304,"width":743,"height":12}},{"id":"ea4aa53d-c107-4cb5-aed5-5509d2661403","block_type":"box","text":"Fund’s affiliates, or BlackRock employees. 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In such circumstances, the independent third-party voting service provider","page_number":539,"box":{"x":184,"y":134,"width":669,"height":12}},{"id":"58897e36-c5a4-4b49-be74-92935b8712d3","block_type":"box","text":"provides BlackRock with recommendations, in accordance with the Guidelines, as to how to","page_number":539,"box":{"x":184,"y":149,"width":686,"height":12}},{"id":"dc0764b0-b658-4834-a2cd-e663e0355e25","block_type":"box","text":"vote such proxies. BlackRock uses an independent third-party voting service provider to make","page_number":539,"box":{"x":183,"y":165,"width":704,"height":12}},{"id":"f7ba2c4f-bbd4-4ef9-8139-3822be3cfe57","block_type":"box","text":"proxy voting recommendations for shares of BlackRock, Inc. and companies affiliated with","page_number":539,"box":{"x":184,"y":180,"width":673,"height":12}},{"id":"a55a2f8f-8237-44e4-8e41-03ed1c9c12f0","block_type":"box","text":"BlackRock, Inc. BlackRock may also use an independent third-party voting service provider to","page_number":539,"box":{"x":184,"y":196,"width":701,"height":12}},{"id":"66f28477-6bc0-4938-b273-242c8411807f","block_type":"box","text":"make proxy voting recommendations for certain perceived or potential conflicts of interest,","page_number":539,"box":{"x":184,"y":211,"width":673,"height":12}},{"id":"099ccbea-ada5-49cb-981e-a6ed93b18a81","block_type":"box","text":"including:","page_number":539,"box":{"x":184,"y":227,"width":75,"height":12}},{"id":"cde10afa-26c4-4d33-a4b2-f7923078cc22","block_type":"box","text":"• public companies that include BlackRock employees on their boards of directors","page_number":539,"box":{"x":226,"y":250,"width":625,"height":12}},{"id":"bb3ee7d7-276f-4764-856f-289c542523af","block_type":"box","text":"• public companies of which a BlackRock, Inc. board member serves as a senior","page_number":539,"box":{"x":226,"y":273,"width":616,"height":12}},{"id":"1a3d507a-cad2-43da-8ef6-1fd9bd080491","block_type":"box","text":"executive or a member of the board of directors","page_number":539,"box":{"x":251,"y":289,"width":358,"height":9}},{"id":"b087a17d-6f3e-42b6-9dcb-13888c49233d","block_type":"box","text":"• public companies that are the subject of certain transactions involving BlackRock","page_number":539,"box":{"x":226,"y":312,"width":631,"height":12}},{"id":"2825fcb4-87a6-4e9e-b712-4df18f165594","block_type":"box","text":"Funds","page_number":539,"box":{"x":252,"y":327,"width":50,"height":10}},{"id":"8ce4a68f-6797-401b-925b-38e2a7747651","block_type":"box","text":"• public companies that are joint venture partners with BlackRock, and","page_number":539,"box":{"x":226,"y":351,"width":540,"height":12}},{"id":"7f89619a-f9b4-4465-a773-344f5de69096","block_type":"box","text":"• public companies when legal or regulatory requirements compel BlackRock to use","page_number":539,"box":{"x":226,"y":374,"width":640,"height":12}},{"id":"739d7144-97c8-417f-8898-be6abb9b346d","block_type":"box","text":"an independent third-party voting service provider","page_number":539,"box":{"x":251,"y":389,"width":374,"height":12}},{"id":"91b768dd-9683-4cb0-b192-7bec157279e6","block_type":"box","text":"In selecting an independent third-party voting service provider, we assess several characteristics,","page_number":539,"box":{"x":117,"y":420,"width":727,"height":12}},{"id":"63525568-8efd-4e77-912f-d406f75f0bec","block_type":"box","text":"including but not limited to: independence, an ability to analyze proxy issues and make","page_number":539,"box":{"x":117,"y":436,"width":647,"height":12}},{"id":"6b637ae3-260c-44a6-9db0-cb24ec6d939d","block_type":"box","text":"recommendations in the economic interest of our clients in accordance with the Guidelines, reputation","page_number":539,"box":{"x":117,"y":451,"width":760,"height":12}},{"id":"09d3428a-d99c-456e-9a28-8006f0feea13","block_type":"box","text":"for reliability and integrity, and operational capacity to accurately deliver the assigned","page_number":539,"box":{"x":116,"y":467,"width":637,"height":12}},{"id":"ae78e3d7-59aa-4e95-8dba-970659d5b779","block_type":"box","text":"recommendations in a timely manner. We may engage more than one independent third-party voting","page_number":539,"box":{"x":117,"y":482,"width":752,"height":12}},{"id":"a6401c2e-9585-4a9d-bfd6-4d7fe1847591","block_type":"box","text":"service provider, in part to mitigate potential or perceived conflicts of interest at a single voting service","page_number":539,"box":{"x":116,"y":498,"width":761,"height":12}},{"id":"3b0ff932-8328-4f2c-afdd-c1b708c41ba0","block_type":"box","text":"provider.","page_number":539,"box":{"x":117,"y":514,"width":69,"height":11}},{"id":"6fd0cf55-a3de-4e7b-baec-092695706422","block_type":"box","text":"Securities lending","page_number":539,"box":{"x":116,"y":544,"width":149,"height":12}},{"id":"db8f23ed-491e-4de9-adeb-896eb1596212","block_type":"box","text":"If authorized, BlackRock acts as a securities lending agent on behalf of its clients. 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However, in certain instances, BlackRock","page_number":539,"box":{"x":116,"y":824,"width":758,"height":12}},{"id":"366cc5f4-a260-4ec4-9192-fc0bc4228fd2","block_type":"box","text":"may determine, in our independent business judgment as a fiduciary, that the value of voting","page_number":539,"box":{"x":117,"y":839,"width":691,"height":12}},{"id":"7cf22f0d-6eda-43bb-bf16-732dc5971d9b","block_type":"box","text":"outweighs the securities lending revenue loss to clients and would therefore recall shares to be voted","page_number":539,"box":{"x":116,"y":854,"width":756,"height":13}},{"id":"f2c6fb34-8270-46b9-bcc9-be5aeca468c4","block_type":"box","text":"in those instances.","page_number":539,"box":{"x":117,"y":870,"width":143,"height":9}},{"id":"ac8c87ad-3f8d-4cb8-a2a1-95359e18aa37","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":539,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"3c00e19b-6bf9-4654-8f08-3715dac53ea4","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":539,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"291235bc-2ac6-4619-b232-a352edbd3baf","block_type":"box","text":"21","page_number":539,"box":{"x":865,"y":909,"width":16,"height":9}},{"id":"8f2853f1-0607-4cb6-b810-c69275fa6732","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":539,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"71b4983f-60ca-427c-908a-6bd9d710205c","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in","page_number":540,"box":{"x":117,"y":87,"width":731,"height":12}},{"id":"7429d897-9c79-49dc-993d-47e967ea130a","block_type":"box","text":"order to vote and may modify it as necessary.","page_number":540,"box":{"x":116,"y":102,"width":344,"height":13}},{"id":"56844a96-a44b-4d77-9f96-9b7fa0dafd2d","block_type":"box","text":"Reporting and vote transparency","page_number":540,"box":{"x":117,"y":134,"width":267,"height":12}},{"id":"54006f7e-ddbd-4d80-a473-bfb44a5a6a19","block_type":"box","text":"BAIS is committed to transparency in the stewardship work we do on behalf of clients. 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Potential material conflicts, and the resultant potential for","page_number":542,"box":{"x":116,"y":770,"width":724,"height":13}},{"id":"b3f665bb-d56d-4413-89f0-3b66df7ddfd3","block_type":"box","text":"undue influence, might be due to a relationship between the investee company (or any shareholder","page_number":542,"box":{"x":117,"y":786,"width":735,"height":12}},{"id":"c14f1cb5-52fe-461a-a5d4-3968b25212b5","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates or employees, or a Fund or","page_number":542,"box":{"x":117,"y":801,"width":756,"height":13}},{"id":"e5067ca5-6cb9-45d6-98ea-0b1c56fe639a","block_type":"box","text":"a Fund’s affiliates. BlackRock has taken certain steps to mitigate potential conflicts, which are outlined","page_number":542,"box":{"x":116,"y":817,"width":757,"height":12}},{"id":"39b10425-6746-4ee0-af43-ae212eb271dc","block_type":"box","text":"in detail in the Guidelines. 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The Guidelines set forth BlackRock’s approach to","page_number":543,"box":{"x":117,"y":211,"width":733,"height":12}},{"id":"a10b1053-589c-40ab-a225-eb81ddaf51a9","block_type":"box","text":"recalling securities on loan in connection with proxy voting.","page_number":543,"box":{"x":117,"y":227,"width":440,"height":12}},{"id":"353738f3-70f8-4551-9770-09fc202024b9","block_type":"box","text":"Reports to the Board","page_number":543,"box":{"x":117,"y":258,"width":171,"height":11}},{"id":"2b00ace6-78e9-44d8-879a-ec3216a82e2d","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process","page_number":543,"box":{"x":117,"y":281,"width":767,"height":12}},{"id":"5bd23f37-95e3-4ec9-a1ff-017e7d7a5a98","block_type":"box","text":"as applicable to the Funds covered by this policy in the preceding year together with a 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Through stewardship, we assess how companies","page_number":548,"box":{"x":117,"y":149,"width":745,"height":12}},{"id":"13288d71-b15b-40a5-b8d8-834ff1208a6b","block_type":"box","text":"are creating long-term financial value to serve our clients, many of whom are saving for long-term","page_number":548,"box":{"x":116,"y":165,"width":728,"height":12}},{"id":"09909eb7-dfc8-4562-ac96-27608f70c876","block_type":"box","text":"goals, such as retirement. 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As a fiduciary, BlackRock is legally required to make proxy voting","page_number":548,"box":{"x":116,"y":382,"width":663,"height":12}},{"id":"b38a6194-27f6-4b04-be8d-3b3e2b2d0743","block_type":"box","text":"determinations in a manner that is consistent with the investment objectives of clients who have","page_number":548,"box":{"x":116,"y":397,"width":715,"height":12}},{"id":"fd32dba4-c546-4301-99f3-2f98c7c42e12","block_type":"box","text":"delegated voting authority to us. BIS’ Benchmark Policies, and the vote decisions made consistent with","page_number":548,"box":{"x":116,"y":413,"width":770,"height":12}},{"id":"a28e6172-3868-49aa-98f1-1f3a51e84c09","block_type":"box","text":"those policies, reflect our reasonable and independent judgment of what is in the long-term financial","page_number":548,"box":{"x":116,"y":428,"width":746,"height":12}},{"id":"4e60a301-948c-41a2-a924-a9560cb8fd3b","block_type":"box","text":"interests of clients. Our vote decisions are often informed by several factors, including in-depth","page_number":548,"box":{"x":117,"y":444,"width":706,"height":12}},{"id":"1867c458-1a2a-4f2b-8630-3a73e2d110ef","block_type":"box","text":"analysis of company disclosures, comparisons against industry peers, third-party research, and, where","page_number":548,"box":{"x":116,"y":459,"width":768,"height":12}},{"id":"66b4068a-04db-492a-a682-af3894064a8b","block_type":"box","text":"appropriate, engagement with companies.","page_number":548,"box":{"x":116,"y":475,"width":318,"height":12}},{"id":"399f80dc-ad98-4689-99a8-b63b696377c2","block_type":"box","text":"Generally, BIS supports the vote recommendations of the board of directors and management at","page_number":548,"box":{"x":117,"y":506,"width":721,"height":12}},{"id":"5685833c-ab2d-4bec-a932-35407a3e82fa","block_type":"box","text":"companies which have sound corporate governance and deliver strong financial returns over time.","page_number":548,"box":{"x":116,"y":521,"width":734,"height":12}},{"id":"609a00bb-c776-45b9-b161-f28617c2dd7f","block_type":"box","text":"When we determine it is in our clients’ financial interests to convey concern to companies through","page_number":548,"box":{"x":116,"y":537,"width":729,"height":12}},{"id":"ea02a00a-5c5d-44f8-a006-cdd7170bacb7","block_type":"box","text":"voting, we may do so in two forms: we might not support the election of directors or other management","page_number":548,"box":{"x":116,"y":552,"width":768,"height":12}},{"id":"ff5ea569-62f5-4467-8419-a5dba8d48118","block_type":"box","text":"proposals, or we might not support management’s voting recommendation on a shareholder proposal.","page_number":548,"box":{"x":117,"y":568,"width":761,"height":12}},{"id":"d1da2a23-7dc5-4224-9256-802099adad3c","block_type":"box","text":"Shareholder rights","page_number":548,"box":{"x":425,"y":606,"width":154,"height":12}},{"id":"640df598-088c-4ff1-9dbb-a009ce676b3c","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by certain rights","page_number":548,"box":{"x":117,"y":637,"width":762,"height":12}},{"id":"a086eabe-193f-4e23-b2fa-741ea2e5a6db","block_type":"box","text":"attached to shareholding in most markets, as established by corporate laws, regulations, and listing","page_number":548,"box":{"x":116,"y":653,"width":743,"height":12}},{"id":"1f9410c3-a83b-4f44-a932-6e1b3b448364","block_type":"box","text":"rules.","page_number":548,"box":{"x":117,"y":669,"width":38,"height":9}},{"id":"8d314aec-a60a-415e-be9e-6e970ca2c9c7","block_type":"box","text":"3","page_number":548,"box":{"x":157,"y":669,"width":5,"height":6}},{"id":"a0aeb04c-0beb-4c07-87ab-faad89dc926b","block_type":"box","text":"For example, in most markets, shareholders have the right to:","page_number":548,"box":{"x":169,"y":669,"width":456,"height":11}},{"id":"71d14d70-8be9-4d9d-bcc2-a324c72eb3f5","block_type":"box","text":"• Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and","page_number":548,"box":{"x":159,"y":699,"width":699,"height":12}},{"id":"63de2821-e8fb-40de-b154-4b9096f5e2bd","block_type":"box","text":"amend the corporate charter or bylaws.","page_number":548,"box":{"x":184,"y":715,"width":291,"height":12}},{"id":"0993564a-a007-4274-8c6c-61b8a0f52fd6","block_type":"box","text":"• Vote on key board decisions that are material to the protection of their investment, including","page_number":548,"box":{"x":159,"y":738,"width":704,"height":12}},{"id":"2f5d579a-1d29-4b00-a999-d9dbb92aee92","block_type":"box","text":"but not limited to, changes to the purpose of the business, dilution levels, and pre-emptive","page_number":548,"box":{"x":184,"y":754,"width":667,"height":12}},{"id":"c88728fe-a30c-45ae-86f2-41fce2e4c763","block_type":"box","text":"rights.","page_number":548,"box":{"x":184,"y":769,"width":43,"height":12}},{"id":"7e89375a-2738-4646-b98b-c1ec887d9f46","block_type":"box","text":"• Access sufficient and timely information on governance, strategic, and business matters –","page_number":548,"box":{"x":159,"y":792,"width":691,"height":13}},{"id":"65391be1-b389-4102-929b-7a51aba019d5","block_type":"box","text":"where such matters are material – to make informed decisions.","page_number":548,"box":{"x":183,"y":808,"width":468,"height":9}},{"id":"cdf1734a-4154-4efa-bd28-748737386a55","block_type":"box","text":"3","page_number":548,"box":{"x":143,"y":854,"width":4,"height":5}},{"id":"430925dc-4718-4daa-b067-798fd34c31c2","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":548,"box":{"x":171,"y":854,"width":682,"height":9}},{"id":"f457568e-6ffd-444c-a344-8c3556088bd9","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":548,"box":{"x":170,"y":867,"width":651,"height":9}},{"id":"f2a86b1d-1382-4b62-a7bc-3ce1e4314272","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":548,"box":{"x":170,"y":880,"width":538,"height":9}},{"id":"813c2a0c-980c-4f3a-9a86-150ff9476075","block_type":"box","text":"BlackRock Investment Stewardship","page_number":548,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"4bf981f0-6776-4c35-9e94-53e93a71e0ce","block_type":"box","text":"Global Principles |","page_number":548,"box":{"x":735,"y":909,"width":133,"height":12}},{"id":"65a6ef3d-9bff-4c03-a30a-cbe391242979","block_type":"box","text":"4","page_number":548,"box":{"x":874,"y":909,"width":9,"height":9}},{"id":"1e6ea611-f138-432a-834d-021fdd39285b","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":548,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c9151f76-f4bf-41df-8fe3-464f073bc8a5","block_type":"box","text":"Key governance topics","page_number":549,"box":{"x":409,"y":87,"width":187,"height":12}},{"id":"25babcc9-0036-41a6-a206-28f3395abe57","block_type":"box","text":"In our experience, there are certain globally applicable elements of corporate governance that","page_number":549,"box":{"x":117,"y":118,"width":700,"height":12}},{"id":"74a6bc8b-aca3-475a-80d6-6bc954191ed7","block_type":"box","text":"contribute to a company’s ability to create long-term financial value for shareholders. These are topics","page_number":549,"box":{"x":116,"y":134,"width":761,"height":12}},{"id":"b0e5c693-6955-4a6c-bf75-cc4935acd5ff","block_type":"box","text":"that shareholders may have the ability to vote on at shareholder meetings. These areas include:","page_number":549,"box":{"x":116,"y":149,"width":717,"height":12}},{"id":"b65e919d-8a5f-4d77-bb6a-338680d6cca0","block_type":"box","text":"• Boards and directors","page_number":549,"box":{"x":117,"y":180,"width":192,"height":10}},{"id":"60f700a0-245d-44a7-8a8f-4da4bf3a288e","block_type":"box","text":"• Auditors and audit-related issues","page_number":549,"box":{"x":117,"y":203,"width":282,"height":10}},{"id":"82209d97-68cb-40d3-9d0e-f015d4043f10","block_type":"box","text":"• Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":549,"box":{"x":117,"y":227,"width":635,"height":12}},{"id":"d03b5849-81c2-43d0-8d9e-03eb3a338147","block_type":"box","text":"• Executive compensation","page_number":549,"box":{"x":117,"y":250,"width":219,"height":12}},{"id":"5b45b459-3232-4234-828e-07824f9acee0","block_type":"box","text":"• Shareholder protections and other significant corporate governance matters","page_number":549,"box":{"x":117,"y":273,"width":600,"height":12}},{"id":"f16d9324-17e3-473e-a235-de21dee37e4e","block_type":"box","text":"• Shareholder proposals","page_number":549,"box":{"x":117,"y":296,"width":206,"height":12}},{"id":"d3d67381-bb2a-43e7-99ae-58af5f72049e","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking","page_number":549,"box":{"x":116,"y":327,"width":744,"height":12}},{"id":"5d0ab381-0751-4a49-8e7b-e4bdb2af0868","block_type":"box","text":"into consideration a number of company-specific factors, including the sector, market, and business","page_number":549,"box":{"x":117,"y":343,"width":744,"height":12}},{"id":"affa336b-3f09-4e06-a4d1-956fcb7a8476","block_type":"box","text":"environment within which companies operate.","page_number":549,"box":{"x":116,"y":358,"width":345,"height":12}},{"id":"2f3ae23f-5e8a-4b6a-add7-0c0bc065b4a8","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance","page_number":549,"box":{"x":116,"y":389,"width":761,"height":12}},{"id":"387544ba-4799-44e5-9e40-a7026bd16ce0","block_type":"box","text":"standards in their domestic market at a minimum, and we ask that, if they do not, they explain how","page_number":549,"box":{"x":116,"y":405,"width":736,"height":12}},{"id":"0e126070-8742-4986-b765-6dbf7e4aca5a","block_type":"box","text":"their approach better supports durable, long-term financial value creation. Our regional voting","page_number":549,"box":{"x":116,"y":420,"width":698,"height":12}},{"id":"9e6320cc-1979-4427-b313-db4c99693743","block_type":"box","text":"guidelines explain how the BIS Global Principles inform our voting decisions in relation to common","page_number":549,"box":{"x":116,"y":436,"width":735,"height":12}},{"id":"6f589369-14bd-4b7b-900e-79e4ab200013","block_type":"box","text":"ballot items for shareholder meetings in those markets.","page_number":549,"box":{"x":117,"y":451,"width":406,"height":12}},{"id":"8905448c-2399-44c0-8179-e7b56e45e8e7","block_type":"box","text":"4","page_number":549,"box":{"x":525,"y":451,"width":5,"height":7}},{"id":"8bf71481-fd0b-4b13-8248-ab6f4881fecc","block_type":"box","text":"Boards and directors","page_number":549,"box":{"x":416,"y":490,"width":173,"height":10}},{"id":"f09c0979-6a93-4b85-8215-d41579c40ad8","block_type":"box","text":"Oversight role of the board","page_number":549,"box":{"x":116,"y":521,"width":221,"height":12}},{"id":"f7967e69-6e0c-432d-9ebe-a24bebafed1a","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with","page_number":549,"box":{"x":117,"y":552,"width":676,"height":12}},{"id":"31ae68d8-e7e1-4098-a6a0-3983eb13351e","block_type":"box","text":"professional characteristics relevant to a company’s business enhance the board’s ability to add long","page_number":549,"box":{"x":117,"y":568,"width":753,"height":12}},{"id":"363c88de-9bae-4ed5-bbdb-87ae7285c3c2","block_type":"box","text":"term financial value and serve as the voice of shareholders in board discussions. In our view, a strong","page_number":549,"box":{"x":116,"y":583,"width":761,"height":12}},{"id":"231c3b3a-e9f5-4144-862c-c3ed6d5bc1cd","block_type":"box","text":"board gives a company a competitive advantage, providing valuable oversight and contributing to the","page_number":549,"box":{"x":117,"y":599,"width":754,"height":12}},{"id":"61fd5fad-26e1-482f-ab0a-c91c12b284af","block_type":"box","text":"most important management decisions that support long-term financial performance.","page_number":549,"box":{"x":117,"y":614,"width":632,"height":12}},{"id":"4d0b27da-1b59-4bd2-ad41-f7d195a0777c","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors.","page_number":549,"box":{"x":117,"y":645,"width":768,"height":12}},{"id":"c73b9ee6-6d9b-4c04-a286-49dfacc6127b","block_type":"box","text":"We engage, as necessary, with members of the board’s nominating and/or governance committee to","page_number":549,"box":{"x":116,"y":661,"width":748,"height":12}},{"id":"ec88e632-04e3-4bd4-967e-62e8b0d47568","block_type":"box","text":"assess whether governance practices and board composition are effective given a company’s","page_number":549,"box":{"x":116,"y":676,"width":696,"height":12}},{"id":"026f8f43-715b-42bb-a037-e50b570d6aee","block_type":"box","text":"business model, sector, market, and the business environment in which a company is operating.","page_number":549,"box":{"x":117,"y":692,"width":713,"height":12}},{"id":"bd1dde3d-3ef2-47e4-95ff-2265c8d7324d","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and","page_number":549,"box":{"x":116,"y":723,"width":730,"height":12}},{"id":"9809fefe-6727-4ea2-8fec-439e48914fb5","block_type":"box","text":"effective governance mechanisms that supports its oversight of the company’s strategy and","page_number":549,"box":{"x":116,"y":738,"width":679,"height":12}},{"id":"f5e009bf-2558-40f6-9707-7a3ba4e870c3","block_type":"box","text":"operations, consistent with the long-term financial interests of investors. This includes having clear","page_number":549,"box":{"x":116,"y":754,"width":731,"height":12}},{"id":"fd64ad92-98e3-464b-8e28-10ceeaf14da8","block_type":"box","text":"descriptions of the role of the board and the committees of the board and how directors engage with","page_number":549,"box":{"x":116,"y":769,"width":742,"height":12}},{"id":"1eabab5c-6d8f-4e7c-8f2e-0be47ab8ab82","block_type":"box","text":"and oversee management, as well as disclosure of material risks that may affect a company’s long","page_number":549,"box":{"x":116,"y":785,"width":738,"height":12}},{"id":"ba585751-b3e7-45c0-a55e-20cc63502335","block_type":"box","text":"term strategy and how management is effectively identifying, managing, and mitigating such risks.","page_number":549,"box":{"x":116,"y":800,"width":726,"height":12}},{"id":"e52365bc-5139-4fcf-b1b4-fe9275a5b098","block_type":"box","text":"4","page_number":549,"box":{"x":143,"y":841,"width":4,"height":5}},{"id":"e6eac952-a80c-45ce-956d-3f6ea7d7370f","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market, generally","page_number":549,"box":{"x":170,"y":841,"width":702,"height":9}},{"id":"75c41a40-cdec-47b8-8b2c-75cd710e073b","block_type":"box","text":"accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives, amongst other","page_number":549,"box":{"x":170,"y":854,"width":712,"height":9}},{"id":"0592fa12-1021-437e-b229-171cf4883f26","block_type":"box","text":"factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote operations (including","page_number":549,"box":{"x":170,"y":867,"width":688,"height":9}},{"id":"dd1f2fdf-a4b8-4ffe-8c4d-b4a329c3b483","block_type":"box","text":"maintaining records of votes cast) in a manner consistent with the relevant regional voting guidelines.","page_number":549,"box":{"x":170,"y":880,"width":600,"height":9}},{"id":"7b271d2f-4000-4d99-925d-d22b38f846a8","block_type":"box","text":"BlackRock Investment Stewardship","page_number":549,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"4a0ebdf5-6a9a-4b8f-a1a0-448792a917c4","block_type":"box","text":"Global Principles |","page_number":549,"box":{"x":735,"y":909,"width":133,"height":12}},{"id":"115e34e8-9593-44e8-90e0-cafa314fe804","block_type":"box","text":"5","page_number":549,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"f50ef850-81e5-4a9b-8540-d5d21e35a900","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":549,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"db44daff-95f7-4de7-bf0a-615092e986d8","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should","page_number":550,"box":{"x":117,"y":87,"width":747,"height":12}},{"id":"8d269d96-04b8-4d64-b623-9820807ac638","block_type":"box","text":"assess its implementation is central to our approach. If any strategic targets are significantly missed or","page_number":550,"box":{"x":116,"y":102,"width":765,"height":13}},{"id":"763d9160-9941-494e-830a-e7766c051ff8","block_type":"box","text":"materially restated, we find it helpful when company disclosures provide a detailed explanation of the","page_number":550,"box":{"x":117,"y":118,"width":753,"height":12}},{"id":"f69a3ffe-86bc-4933-a6f8-7230ae04bb3b","block_type":"box","text":"changes and an indication of the board’s role in reviewing the revised targets. We look to the board to","page_number":550,"box":{"x":116,"y":134,"width":759,"height":12}},{"id":"54ad4f64-9c3e-4700-8072-6633775d70cf","block_type":"box","text":"articulate the effectiveness of these mechanisms in overseeing the management of business risks and","page_number":550,"box":{"x":116,"y":149,"width":765,"height":12}},{"id":"0019f05a-429a-4e72-ad91-1e8c74f490f8","block_type":"box","text":"opportunities and the fulfillment of the company’s strategy.","page_number":550,"box":{"x":116,"y":165,"width":439,"height":12}},{"id":"4fb5905d-5f23-4769-bc53-d75a05a40c71","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these","page_number":550,"box":{"x":116,"y":196,"width":727,"height":12}},{"id":"4ed84584-1561-44bf-8830-f6eea8f167b3","block_type":"box","text":"corporate governance and risk oversight responsibilities, we may consider not supporting the election","page_number":550,"box":{"x":116,"y":211,"width":757,"height":12}},{"id":"aa37fa24-8100-4036-b085-9c92b0483012","block_type":"box","text":"of directors who, in our assessment, have particular responsibility for the issues.","page_number":550,"box":{"x":116,"y":227,"width":601,"height":12}},{"id":"4ce7d6ec-9cc5-4127-ab42-7e4e18961c8a","block_type":"box","text":"When casting vote decisions on behalf of clients on the election of directors, some of the factors that","page_number":550,"box":{"x":116,"y":258,"width":750,"height":12}},{"id":"f100160a-1bff-45e6-8d95-63e0f66a5568","block_type":"box","text":"speak to the board’s effectiveness as a group include the relevance of individual directors’","page_number":550,"box":{"x":116,"y":273,"width":673,"height":12}},{"id":"72b6ea5f-2b61-4b2f-a64e-b3d3c31e9406","block_type":"box","text":"qualifications and skillsets, as well as directors’ capacity and other time commitments, and how these","page_number":550,"box":{"x":116,"y":289,"width":757,"height":12}},{"id":"36a981b9-03e1-4d45-8a79-f59482052876","block_type":"box","text":"factors may contribute to the company’s financial performance. We look to boards to establish formal","page_number":550,"box":{"x":116,"y":304,"width":754,"height":12}},{"id":"538b7c31-1618-4650-b89a-560fee46ab7b","block_type":"box","text":"and transparent processes for nominating directors that reflect the company’s long-term strategy and","page_number":550,"box":{"x":116,"y":320,"width":754,"height":12}},{"id":"cc665953-ce10-4fd4-8150-31779e43ae2d","block_type":"box","text":"business model.","page_number":550,"box":{"x":117,"y":335,"width":125,"height":10}},{"id":"fc5877c0-4d72-4d08-81e1-7c1732222e1d","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our","page_number":550,"box":{"x":117,"y":366,"width":697,"height":12}},{"id":"124ad599-a48a-4e97-80fc-e793b10034cc","block_type":"box","text":"approach to board composition and how it underpins board effectiveness and long-term financial value","page_number":550,"box":{"x":116,"y":382,"width":766,"height":12}},{"id":"07069845-ae63-483b-b1bb-438d13ab8b99","block_type":"box","text":"creation.","page_number":550,"box":{"x":116,"y":397,"width":69,"height":10}},{"id":"2e4a47f1-56b9-4647-a431-69ff77ca5ddf","block_type":"box","text":"Regular accountability through director elections","page_number":550,"box":{"x":116,"y":428,"width":398,"height":12}},{"id":"b72a2637-08a1-4206-8456-dfd336959cd0","block_type":"box","text":"The election of directors to the board is a right of shareholders and an important signal of support for,","page_number":550,"box":{"x":116,"y":459,"width":756,"height":12}},{"id":"6213a880-d87e-4d94-8715-3608565e458e","block_type":"box","text":"or concern about, the performance of the board in overseeing and advising management. To ensure","page_number":550,"box":{"x":116,"y":475,"width":749,"height":12}},{"id":"464032ae-3e7a-4454-9319-eab8318bac5b","block_type":"box","text":"accountability for their decisions on behalf of shareholders, directors should stand for election on a","page_number":550,"box":{"x":116,"y":490,"width":736,"height":12}},{"id":"10c40277-dce7-48c2-bff5-43225c888265","block_type":"box","text":"regular basis, ideally annually.","page_number":550,"box":{"x":117,"y":506,"width":223,"height":12}},{"id":"f45f9074-6c01-492f-b901-b527e4a2b9b5","block_type":"box","text":"5","page_number":550,"box":{"x":341,"y":506,"width":6,"height":6}},{"id":"ed2e3d9a-de0d-42a3-9bd8-16a4d6d04efa","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support","page_number":550,"box":{"x":347,"y":506,"width":517,"height":12}},{"id":"874f3a15-707c-4c27-b4a6-710467491ebb","block_type":"box","text":"for, or concerns about, board members’ decisions in a timely manner. When board members are not","page_number":550,"box":{"x":116,"y":521,"width":749,"height":12}},{"id":"96f7f4a9-457a-4a85-880d-915093461b52","block_type":"box","text":"elected annually, we consider it good practice for boards to have a rotation policy to ensure that,","page_number":550,"box":{"x":116,"y":537,"width":719,"height":12}},{"id":"02b2a4d0-eff4-48f1-9632-3f804da9d4e5","block_type":"box","text":"through a board cycle, all directors have had their appointment re-confirmed, with a proportion of","page_number":550,"box":{"x":116,"y":552,"width":722,"height":12}},{"id":"6a62549c-0f39-43e7-b2b4-828d37128d64","block_type":"box","text":"directors being put forward for election at each shareholder meeting.","page_number":550,"box":{"x":116,"y":568,"width":513,"height":12}},{"id":"8f98825d-2bbd-4432-ad0a-46f11ac084b7","block_type":"box","text":"Board quality and effectiveness","page_number":550,"box":{"x":116,"y":599,"width":258,"height":12}},{"id":"bd68d662-9220-414a-abe1-db9c16acac0d","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way","page_number":550,"box":{"x":117,"y":630,"width":770,"height":12}},{"id":"d8851ab3-4e39-4d54-8a38-20e15f4f2e8e","block_type":"box","text":"to reflect developments in the company’s strategy and the market environment. In our view, it is","page_number":550,"box":{"x":116,"y":645,"width":714,"height":12}},{"id":"2c33ac9c-6d4d-4a86-aed4-45f8d7f4c118","block_type":"box","text":"beneficial for new directors to be brought onto the board periodically to refresh the group’s thinking,","page_number":550,"box":{"x":117,"y":661,"width":735,"height":12}},{"id":"50c224c6-9671-4d0c-8a02-742ed01a9e4d","block_type":"box","text":"while supporting both continuity and appropriate succession planning. We consider the average overall","page_number":550,"box":{"x":116,"y":676,"width":763,"height":12}},{"id":"0059b23f-080c-4c52-b701-533905f53041","block_type":"box","text":"tenure of the board and seek a balance between the knowledge and experience of longer-serving","page_number":550,"box":{"x":116,"y":692,"width":723,"height":12}},{"id":"8a9a0912-ffee-4750-bd41-92017f9dc9cd","block_type":"box","text":"directors and the fresh perspectives of directors who joined more recently.","page_number":550,"box":{"x":116,"y":707,"width":549,"height":12}},{"id":"4d404fd0-17e5-4ea6-bd54-10af9af077ea","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election","page_number":550,"box":{"x":116,"y":738,"width":725,"height":12}},{"id":"71703e1d-2fac-4505-8639-5ce04046bf37","block_type":"box","text":"contribute to the effectiveness of the board. In our view, the company’s assessment should consider a","page_number":550,"box":{"x":116,"y":754,"width":757,"height":12}},{"id":"3881184f-8f4f-42c5-95d8-e25d46eafab8","block_type":"box","text":"number of factors, including each director’s independence and time commitments, as well as the","page_number":550,"box":{"x":117,"y":769,"width":715,"height":12}},{"id":"eaae7069-3497-401c-bf7c-a81129dac3ce","block_type":"box","text":"breadth and relevance of director experiences and skillsets, and how these collectively contribute to","page_number":550,"box":{"x":117,"y":785,"width":739,"height":12}},{"id":"3bc888e8-dfb8-4399-ae33-b81c31afa086","block_type":"box","text":"the board’s effectiveness in advising and overseeing management in delivering long-term financial","page_number":550,"box":{"x":116,"y":800,"width":728,"height":12}},{"id":"f144dc20-1a7c-45bf-9cb1-05cf87daa9b5","block_type":"box","text":"returns.","page_number":550,"box":{"x":117,"y":816,"width":54,"height":9}},{"id":"2c447526-6a6e-43f6-aa29-37945e15ad1a","block_type":"box","text":"5","page_number":550,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"01f3b073-1fe1-4a73-8dcd-e967a554e161","block_type":"box","text":"In most markets, directors stand for re-election on an annual or triennial basis, as determined by corporate law, market","page_number":550,"box":{"x":171,"y":867,"width":703,"height":9}},{"id":"68ce1186-31b6-4907-8759-a3f96a92130f","block_type":"box","text":"regulation or voluntary best practice.","page_number":550,"box":{"x":170,"y":880,"width":215,"height":9}},{"id":"f1f51c33-9a41-4f2d-b204-3db208ed7ce1","block_type":"box","text":"BlackRock Investment Stewardship","page_number":550,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"0b1cbfd7-9575-4e0e-ab51-e21ddb295123","block_type":"box","text":"Global Principles |","page_number":550,"box":{"x":735,"y":909,"width":133,"height":12}},{"id":"0d9a9754-5016-46bd-80f2-e96fe22228c4","block_type":"box","text":"6","page_number":550,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"333ca624-bb67-4cbb-acd6-4b8f189d9712","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":550,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9ea9e90a-0264-4e4a-989b-2cf08f82d08f","block_type":"box","text":"Director independence","page_number":551,"box":{"x":116,"y":87,"width":187,"height":12}},{"id":"914a8e75-b164-47e8-806f-314fe63851f7","block_type":"box","text":"Director independence – from management, significant shareholders, or other related parties – is a","page_number":551,"box":{"x":117,"y":117,"width":738,"height":12}},{"id":"b7a4d7bf-e903-47f9-8b32-ba686ef4081f","block_type":"box","text":"central tenet of sound corporate governance across markets.","page_number":551,"box":{"x":116,"y":132,"width":452,"height":12}},{"id":"e743936d-c98a-4fb4-9942-e55f42419ee0","block_type":"box","text":"6","page_number":551,"box":{"x":570,"y":132,"width":5,"height":6}},{"id":"67a3acc2-3a98-4f85-bdeb-f13db06d2613","block_type":"box","text":"We look to boards to have a sufficient","page_number":551,"box":{"x":576,"y":132,"width":290,"height":10}},{"id":"b63afa23-366a-4b40-ba48-dd44ff6248e9","block_type":"box","text":"number of independent directors, free from conflicts of interest or undue influence, to ensure objectivity","page_number":551,"box":{"x":117,"y":148,"width":768,"height":12}},{"id":"07cce6c2-e2d5-443b-9eb4-3616fe886194","block_type":"box","text":"in the decision-making of the board and its ability to oversee management. We generally consider it","page_number":551,"box":{"x":117,"y":163,"width":742,"height":12}},{"id":"9ebb440b-d962-4f86-b7bc-f571a3e9969d","block_type":"box","text":"good practice for independent directors to make a majority of the board, or in the case of controlled","page_number":551,"box":{"x":116,"y":179,"width":740,"height":12}},{"id":"d0ea61b6-e2cb-432c-9754-aa6b4560698a","block_type":"box","text":"companies, at least one-third.","page_number":551,"box":{"x":116,"y":194,"width":225,"height":12}},{"id":"ec67c6b3-368f-4089-ab80-929e0746e7f9","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":551,"box":{"x":117,"y":224,"width":557,"height":12}},{"id":"62362389-7be3-4f6b-925e-80727bf01b77","block_type":"box","text":"• Current or recent employment at the company or a subsidiary","page_number":551,"box":{"x":117,"y":254,"width":495,"height":12}},{"id":"ab16573c-c0f1-4392-bf4b-137dd1169d3d","block_type":"box","text":"• Being, or representing, a shareholder with a substantial shareholding in the company","page_number":551,"box":{"x":117,"y":276,"width":668,"height":12}},{"id":"4fe81ba9-7260-4e63-bbc3-ec019cf350e5","block_type":"box","text":"• Interlocking directorates","page_number":551,"box":{"x":117,"y":299,"width":216,"height":12}},{"id":"23e6166a-729d-4bae-8a81-c4dcf7ff5537","block_type":"box","text":"• Having any other interest, business, or other relationship which could, or could reasonably be","page_number":551,"box":{"x":117,"y":322,"width":730,"height":12}},{"id":"39fe8704-41c2-4313-aa6b-b0f8f7d2532a","block_type":"box","text":"perceived to, materially interfere with a director’s ability to act in the best interests of the company","page_number":551,"box":{"x":150,"y":337,"width":729,"height":12}},{"id":"4bc21cf0-e67b-4418-ac86-f000c1d18ad8","block_type":"box","text":"and shareholders","page_number":551,"box":{"x":150,"y":353,"width":134,"height":9}},{"id":"a006288c-9974-4d59-99b1-36e3f42454e0","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a","page_number":551,"box":{"x":117,"y":382,"width":759,"height":12}},{"id":"1606c3b6-8166-46b0-acc5-7deb61258ab7","block_type":"box","text":"senior, independent board leader. This director may chair the board, or, where the chair is also the","page_number":551,"box":{"x":116,"y":398,"width":736,"height":12}},{"id":"eb2f185c-6479-4201-b3b4-d6157402e6f4","block_type":"box","text":"CEO (or is otherwise not independent), be designated as a lead independent director. The role of this","page_number":551,"box":{"x":117,"y":413,"width":757,"height":12}},{"id":"7130464b-f524-4298-ad88-2a8ef65d301f","block_type":"box","text":"director is to support independent board members in fulfilling their oversight responsibilities effectively","page_number":551,"box":{"x":116,"y":429,"width":760,"height":12}},{"id":"fba51e01-f157-46a4-856a-74ca27ac42d2","block_type":"box","text":"by shaping the agenda, ensuring adequate information is provided to the board, and encouraging","page_number":551,"box":{"x":117,"y":444,"width":726,"height":12}},{"id":"a93fa079-cb1c-4899-a3e3-4dd29df8ed0d","block_type":"box","text":"independent director participation in board deliberations. We appreciate when the lead independent","page_number":551,"box":{"x":117,"y":460,"width":742,"height":12}},{"id":"ba6d032c-5a43-4cdc-9177-81ba68b07758","block_type":"box","text":"director or another appropriate director is available to meet with shareholders to explain and","page_number":551,"box":{"x":116,"y":475,"width":687,"height":12}},{"id":"9cd4bd12-b92a-4478-91d7-ddf578b1105f","block_type":"box","text":"contextualize a company’s approach as a situation warrants.","page_number":551,"box":{"x":116,"y":491,"width":454,"height":12}},{"id":"1f7e8664-4ee7-4225-a86b-709bd2e517f9","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or","page_number":551,"box":{"x":117,"y":520,"width":759,"height":13}},{"id":"77eadd6f-b706-4588-beda-afcdcf450e19","block_type":"box","text":"that require additional focus. It is our view that objective oversight of such matters is best achieved","page_number":551,"box":{"x":116,"y":536,"width":736,"height":12}},{"id":"435fcc52-ae12-4ae3-9743-c0fd387af1e8","block_type":"box","text":"when the board forms committees with a majority of independent directors, depending on market","page_number":551,"box":{"x":116,"y":551,"width":723,"height":13}},{"id":"39fb708f-6d94-46f4-b32d-297336c4fb3c","block_type":"box","text":"norms and a company’s ownership structure. In many markets, these committees of the board","page_number":551,"box":{"x":117,"y":567,"width":704,"height":12}},{"id":"61eabc65-6d06-40d9-8867-3af439126f08","block_type":"box","text":"specialize in audit, director nominations, and compensation matters, among others. An ad hoc","page_number":551,"box":{"x":116,"y":583,"width":703,"height":12}},{"id":"778161e7-e237-4554-8f41-6bd76cfcaca5","block_type":"box","text":"committee might also be formed to decide on a special transaction, particularly one involving a related","page_number":551,"box":{"x":116,"y":598,"width":762,"height":12}},{"id":"2bf3c1f2-99af-489d-b6de-e34146b59668","block_type":"box","text":"party, or to investigate a significant adverse event.","page_number":551,"box":{"x":117,"y":613,"width":378,"height":13}},{"id":"9125bf20-b681-4ad6-a917-974b72cc271a","block_type":"box","text":"Sufficient capacity","page_number":551,"box":{"x":117,"y":643,"width":152,"height":12}},{"id":"c0fc94ba-999a-430b-8eeb-8cb04cc7f54a","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to","page_number":551,"box":{"x":116,"y":673,"width":709,"height":12}},{"id":"5a7c7b6b-0593-4a05-b635-0363ce34bbbd","block_type":"box","text":"commit an appropriate amount of time to board and committee matters. It is important that directors","page_number":551,"box":{"x":116,"y":688,"width":738,"height":12}},{"id":"51d42ff3-17e1-406b-a783-064f3f76ea19","block_type":"box","text":"have the capacity to meet all of their responsibilities – including when there are unforeseen events –","page_number":551,"box":{"x":117,"y":704,"width":743,"height":12}},{"id":"cdc47901-b387-4aa0-9833-14d4be55d750","block_type":"box","text":"and therefore, we consider it best practice when they don’t take on an excessive number of roles that","page_number":551,"box":{"x":116,"y":719,"width":751,"height":13}},{"id":"f045c812-8c7e-4961-9035-50af829aa7c4","block_type":"box","text":"would impair their ability to fulfill their duties.","page_number":551,"box":{"x":116,"y":735,"width":326,"height":12}},{"id":"eaedccbc-25c3-4d1b-87a4-ba30879cad25","block_type":"box","text":"Board composition","page_number":551,"box":{"x":116,"y":765,"width":153,"height":12}},{"id":"90cafcf2-7514-492b-9cd7-b2d433734c61","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model,","page_number":551,"box":{"x":117,"y":795,"width":708,"height":11}},{"id":"126e5662-2c38-43e0-babf-f1fa1ea7ee35","block_type":"box","text":"strategy, market capitalization, and ownership structure, as well as the market in which the company","page_number":551,"box":{"x":116,"y":810,"width":745,"height":12}},{"id":"5b662020-d546-47d5-9f9f-e9eaf686e881","block_type":"box","text":"operates. We find it helpful when companies explain how their approach to board composition supports","page_number":551,"box":{"x":116,"y":825,"width":771,"height":12}},{"id":"2ed5cb99-69a2-4d1d-8af7-785374122c1b","block_type":"box","text":"the company’s governance practices.","page_number":551,"box":{"x":116,"y":841,"width":282,"height":12}},{"id":"5fe5d548-4322-4278-af45-e4a92b6e8fa1","block_type":"box","text":"6","page_number":551,"box":{"x":143,"y":866,"width":4,"height":5}},{"id":"5271f0d2-31d1-4ff5-9845-7afc5e5dd414","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":551,"box":{"x":171,"y":866,"width":683,"height":10}},{"id":"7938d501-b370-42f1-8551-23cd7faf16b8","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":551,"box":{"x":171,"y":879,"width":587,"height":10}},{"id":"631b1ead-cf30-42d5-98d0-68c111eee5ea","block_type":"box","text":"BlackRock Investment Stewardship","page_number":551,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"c3f1e3bd-1fed-41df-a9f0-2e3ea91dd8b2","block_type":"box","text":"Global Principles |","page_number":551,"box":{"x":735,"y":909,"width":133,"height":12}},{"id":"38b8e51d-2b90-41dc-8bf1-16622eb66e72","block_type":"box","text":"7","page_number":551,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"eca85347-178a-4ba3-98c3-1650d2f82657","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":551,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0066ebae-d9d8-4f66-ad76-4253b02ebdfe","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the","page_number":552,"box":{"x":116,"y":87,"width":760,"height":12}},{"id":"fc990058-ed34-474e-a78e-dd5f4e0b613f","block_type":"box","text":"individual candidates so that shareholders can assess the capabilities and suitability of each individual","page_number":552,"box":{"x":117,"y":102,"width":763,"height":13}},{"id":"23007e15-51bb-4bfd-bc35-a8c5e9831337","block_type":"box","text":"nominee and their fit within overall board composition. These disclosures should explain how the","page_number":552,"box":{"x":117,"y":118,"width":721,"height":12}},{"id":"74819ace-b0ec-4731-82da-43b80e36216e","block_type":"box","text":"collective experience and expertise of the board, as well as the particular skillsets of individual","page_number":552,"box":{"x":116,"y":134,"width":703,"height":11}},{"id":"623ecfde-a94c-4d5b-8965-b17b791f2acc","block_type":"box","text":"directors, aligns with the company’s long-term strategy. Highly qualified, engaged directors with","page_number":552,"box":{"x":116,"y":149,"width":713,"height":12}},{"id":"41556f76-9ad4-4c29-8359-e81e7bd6ab8d","block_type":"box","text":"professional characteristics relevant to a company’s business and strategy enhance the ability of the","page_number":552,"box":{"x":117,"y":165,"width":749,"height":12}},{"id":"78d57488-b4d1-4c5d-809c-ee4d04c89de7","block_type":"box","text":"board to add value and be the voice of shareholders in board discussions.","page_number":552,"box":{"x":117,"y":180,"width":554,"height":10}},{"id":"e254b1db-b9cf-49f5-aafb-92f67641dbc0","block_type":"box","text":"It is in this context that we are interested in a variety of experiences, perspectives, and skillsets in the","page_number":552,"box":{"x":117,"y":212,"width":755,"height":12}},{"id":"0d088326-b0d4-462a-856c-9d5061e46b5b","block_type":"box","text":"board room. We see it as a means of avoiding “group think” in the board’s exercise of its","page_number":552,"box":{"x":117,"y":228,"width":659,"height":12}},{"id":"ae669e10-4f5a-4f00-b2a5-17e5be6a8061","block_type":"box","text":"responsibilities to advise and oversee management. We note that in many markets, policymakers have","page_number":552,"box":{"x":117,"y":244,"width":768,"height":11}},{"id":"08fb807d-f84c-4591-b237-b081602f99c1","block_type":"box","text":"set board gender diversity goals which we may discuss with companies, particularly if there is a risk","page_number":552,"box":{"x":116,"y":259,"width":743,"height":12}},{"id":"5a93b3be-5ac0-4b1a-b222-055c0d48aa7a","block_type":"box","text":"their board composition may be misaligned.","page_number":552,"box":{"x":116,"y":275,"width":329,"height":12}},{"id":"bc53aa0a-8b1f-4c12-98a2-68e25e83eac4","block_type":"box","text":"Auditors and audit-related issues","page_number":552,"box":{"x":366,"y":315,"width":272,"height":10}},{"id":"d288091e-82ba-43f6-8d6e-1e4894b22c92","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate","page_number":552,"box":{"x":117,"y":348,"width":725,"height":12}},{"id":"c01ca49c-821c-4916-b661-cf59246ce2bd","block_type":"box","text":"portrayal of a company’s financial condition. Accordingly, we look for the assumptions made by","page_number":552,"box":{"x":117,"y":363,"width":709,"height":12}},{"id":"02731499-a706-48bd-99e4-52a2669adfdc","block_type":"box","text":"management, and reviewed by the auditor in preparing the financial statements, to be reasonable and","page_number":552,"box":{"x":117,"y":379,"width":760,"height":12}},{"id":"bad9438d-5fb7-4518-aeda-23cbd8c378e5","block_type":"box","text":"justified.","page_number":552,"box":{"x":115,"y":394,"width":67,"height":12}},{"id":"4dbb5428-58df-47da-96a5-29c6449ce7c9","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":552,"box":{"x":116,"y":426,"width":754,"height":13}},{"id":"583df59f-70bb-4f6d-9b3d-f50df00283ab","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important","page_number":552,"box":{"x":117,"y":442,"width":746,"height":12}},{"id":"35e66083-221a-47fb-9ec8-b1ee21fe1ede","block_type":"box","text":"role in a company’s financial reporting system by providing independent oversight of the accounts,","page_number":552,"box":{"x":117,"y":457,"width":733,"height":13}},{"id":"b585f0d6-328a-414e-8bbe-f9f58cf1cbc9","block_type":"box","text":"material financial, and, where appropriate to the jurisdiction, non-financial information and internal","page_number":552,"box":{"x":117,"y":473,"width":728,"height":12}},{"id":"27a90fe3-aacd-40ae-a8c2-f912b971df45","block_type":"box","text":"control frameworks. Moreover, in the absence of a dedicated risk committee, these committees can","page_number":552,"box":{"x":116,"y":488,"width":743,"height":12}},{"id":"04354197-6c55-455b-986a-df628a665a2b","block_type":"box","text":"provide oversight of Enterprise Risk Management systems.","page_number":552,"box":{"x":117,"y":504,"width":437,"height":12}},{"id":"a87eb8b2-c3fd-4da1-b64f-f517ccc7bc76","block_type":"box","text":"7","page_number":552,"box":{"x":556,"y":504,"width":5,"height":6}},{"id":"257733fc-81b3-4c61-a8d5-54464d63c4d7","block_type":"box","text":"In our view, effective audit committee","page_number":552,"box":{"x":562,"y":504,"width":286,"height":11}},{"id":"f96a4645-f3dd-4585-8ac9-2df1119dce32","block_type":"box","text":"oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":552,"box":{"x":116,"y":519,"width":745,"height":13}},{"id":"dc7e2e69-6e9f-4c36-9ef3-3a0f956d7e34","block_type":"box","text":"important level of reassurance to shareholders.","page_number":552,"box":{"x":117,"y":535,"width":354,"height":12}},{"id":"d367b83b-73dc-4820-af23-6000454c06b3","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":552,"box":{"x":116,"y":567,"width":750,"height":12}},{"id":"47384a21-737a-4751-a8b9-4de16f1711b3","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership","page_number":552,"box":{"x":117,"y":583,"width":765,"height":12}},{"id":"6233c68a-3114-45db-972e-01f53a10b526","block_type":"box","text":"and introduce new perspectives. We recognize that audit committees will rely on management, internal","page_number":552,"box":{"x":116,"y":598,"width":769,"height":12}},{"id":"ac3c6d2c-4f62-49b2-a981-d9ae898dbc19","block_type":"box","text":"audit, and the independent auditor to fulfill their responsibilities. However, we look to committee","page_number":552,"box":{"x":116,"y":614,"width":712,"height":12}},{"id":"d2d9b44f-f357-40ef-a0be-e9674a905d5f","block_type":"box","text":"members to demonstrate they have relevant expertise to monitor and oversee the audit process and","page_number":552,"box":{"x":117,"y":629,"width":749,"height":12}},{"id":"6548298d-55de-4c06-8705-66aea0edd99b","block_type":"box","text":"related activities.","page_number":552,"box":{"x":117,"y":645,"width":129,"height":9}},{"id":"9034868e-695e-4544-ac08-2b9c915f98c5","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant","page_number":552,"box":{"x":116,"y":677,"width":748,"height":12}},{"id":"b5fb3b86-dd4e-42eb-8e59-a21110f16931","block_type":"box","text":"financial restatements, or ad hoc notifications of material financial weakness. In this respect, we look to","page_number":552,"box":{"x":116,"y":693,"width":765,"height":12}},{"id":"835b629f-7978-4b04-b13e-e8cf841bd78d","block_type":"box","text":"audit committees to provide timely disclosure on the remediation of key and critical audit matters","page_number":552,"box":{"x":116,"y":708,"width":715,"height":12}},{"id":"8bf17c64-a52b-4e57-9a2e-6bd727fdb8b1","block_type":"box","text":"identified either by the external auditor or internal audit function.","page_number":552,"box":{"x":117,"y":724,"width":472,"height":12}},{"id":"0704125d-9308-44fd-8515-4c7876aea8e5","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":552,"box":{"x":116,"y":756,"width":748,"height":12}},{"id":"18fb9756-2de4-4a66-901b-701428ec41aa","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is important that","page_number":552,"box":{"x":116,"y":772,"width":750,"height":12}},{"id":"6be58302-0577-4fcf-b9bf-e4f2ce2f9198","block_type":"box","text":"auditors are, and are seen to be, independent. Where an audit firm provides services to the company","page_number":552,"box":{"x":116,"y":787,"width":751,"height":12}},{"id":"b1baaa89-d92f-42a6-93eb-de0f93d42e3c","block_type":"box","text":"in addition to the audit, we look for the fees","page_number":552,"box":{"x":117,"y":803,"width":318,"height":11}},{"id":"8903bced-7946-49ea-9b2c-c8a362665d14","block_type":"box","text":"earned to be disclosed and explained. We look for audit","page_number":552,"box":{"x":441,"y":803,"width":414,"height":12}},{"id":"849ac22a-fe38-4f2b-8c14-19447d682cf8","block_type":"box","text":"7","page_number":552,"box":{"x":143,"y":828,"width":4,"height":5}},{"id":"2a2f681a-8130-4f5a-9e17-b30cb02868e8","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":552,"box":{"x":171,"y":828,"width":648,"height":9}},{"id":"3e07dbb3-e7ee-4b05-a879-f80e05fa9e10","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the","page_number":552,"box":{"x":170,"y":841,"width":709,"height":9}},{"id":"6863b439-3aa4-415e-9bcd-fb6b11dffb5b","block_type":"box","text":"entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement of","page_number":552,"box":{"x":170,"y":854,"width":690,"height":9}},{"id":"cc436986-0e41-468c-97d4-0b71d70e7df5","block_type":"box","text":"objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO), “Enterprise","page_number":552,"box":{"x":170,"y":866,"width":710,"height":10}},{"id":"63cb4a1a-ad39-480c-950d-a6193ce705f2","block_type":"box","text":"Risk Management,” 2023, accessed in December 2025.","page_number":552,"box":{"x":171,"y":879,"width":329,"height":10}},{"id":"7712c4be-a713-4bab-a8bc-f27afa354a17","block_type":"box","text":"BlackRock Investment Stewardship","page_number":552,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"f098fd35-9c3b-4f56-b3b4-cc0daf9efa8e","block_type":"box","text":"Global Principles |","page_number":552,"box":{"x":735,"y":909,"width":133,"height":12}},{"id":"c24c47cc-1964-4d51-a958-f395ca6167c4","block_type":"box","text":"8","page_number":552,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"4b1f8525-bcb6-41e4-81de-95bea4fcffdd","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":552,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"70ba66d7-cd82-46ab-8f79-63162369f0cf","block_type":"box","text":"committees to have in place a procedure for assessing the independence of the auditor and the quality","page_number":553,"box":{"x":116,"y":87,"width":767,"height":12}},{"id":"fa726f6e-a1d3-4c4c-94dc-9e519a2fd28b","block_type":"box","text":"of the external audit process on an annual basis.","page_number":553,"box":{"x":116,"y":102,"width":366,"height":12}},{"id":"6d4261d1-667c-469b-a1a4-cbb9c55f0eb9","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term","page_number":553,"box":{"x":117,"y":134,"width":719,"height":12}},{"id":"59f62cda-24c9-422b-bc67-9c0c38b0d44b","block_type":"box","text":"operational risk management practices and, more broadly, the quality of the board’s oversight. We look","page_number":553,"box":{"x":116,"y":149,"width":770,"height":12}},{"id":"ff5b126b-f5d7-4f1a-9273-dd4a7f1dcfb0","block_type":"box","text":"to the audit or risk committee to periodically review the company’s risk assessment and risk","page_number":553,"box":{"x":116,"y":165,"width":684,"height":12}},{"id":"b4947729-056f-44d2-9fd6-90f01efbc672","block_type":"box","text":"management policies and the significant risks and exposures identified by management, the internal","page_number":553,"box":{"x":117,"y":180,"width":747,"height":12}},{"id":"54a54979-aae5-4ec1-b335-7276afd935eb","block_type":"box","text":"auditors or the independent auditors, and management’s steps to address them. In the absence of","page_number":553,"box":{"x":116,"y":196,"width":735,"height":12}},{"id":"a601c99f-b270-40ee-857d-3dc77fbc1b32","block_type":"box","text":"detailed disclosures, we may conclude that companies are not adequately managing risk.","page_number":553,"box":{"x":116,"y":211,"width":668,"height":12}},{"id":"e96ff74c-d0e0-4370-8db5-bf67130f8cdf","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":553,"box":{"x":176,"y":250,"width":652,"height":12}},{"id":"ed9f29fe-650a-4fce-a7ae-141290c9b372","block_type":"box","text":"The capital structure of a company is critical to shareholders as it impacts the value of their investment","page_number":553,"box":{"x":116,"y":281,"width":766,"height":12}},{"id":"1a4aad17-643d-4985-80aa-2c9523443952","block_type":"box","text":"and the priority of their interest in the company relative to that of other equity or debt investors.","page_number":553,"box":{"x":116,"y":296,"width":707,"height":12}},{"id":"12d821be-7a16-46ec-a4c6-e7c963d8a516","block_type":"box","text":"Pre-emptive rights are a key protection for shareholders against the dilution of their interests.","page_number":553,"box":{"x":117,"y":312,"width":693,"height":12}},{"id":"9ef5ede3-e3b9-4554-a9da-abcf306e484b","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure","page_number":553,"box":{"x":117,"y":343,"width":746,"height":12}},{"id":"4959358a-e312-479c-8f0d-eb73982f9488","block_type":"box","text":"and differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce","page_number":553,"box":{"x":116,"y":358,"width":754,"height":12}},{"id":"e6e9f5be-ccba-49db-b234-ff9f26e7565a","block_type":"box","text":"the adoption of “one share, one vote” for registered shareholders.","page_number":553,"box":{"x":116,"y":374,"width":491,"height":12}},{"id":"fd390df8-461d-4d92-88d8-4f99abe216aa","block_type":"box","text":"However, we recognize that in certain markets, at","page_number":553,"box":{"x":117,"y":405,"width":364,"height":12}},{"id":"7799f37b-8b49-487a-bc14-2ec231fbc873","block_type":"box","text":"least for a period of time, companies may have a valid","page_number":553,"box":{"x":482,"y":405,"width":397,"height":12}},{"id":"f580af37-c7fd-4064-8880-8bef47ba907a","block_type":"box","text":"reason for listing dual classes of shares with different","page_number":553,"box":{"x":117,"y":420,"width":384,"height":12}},{"id":"739eaa71-d394-4de1-8a05-c85ee37cf7f4","block_type":"box","text":"iated voting rights. In our view, such companies","page_number":553,"box":{"x":502,"y":420,"width":350,"height":12}},{"id":"cdd9477c-4fe1-4b46-b9fb-5e60c4f37997","block_type":"box","text":"should review these share class structures on a r","page_number":553,"box":{"x":116,"y":436,"width":357,"height":9}},{"id":"72c9e62a-d4e4-45b3-915d-2f813c44603d","block_type":"box","text":"egular basis or as company circumstances change.","page_number":553,"box":{"x":473,"y":436,"width":379,"height":12}},{"id":"f62148b3-0ffc-4e65-9782-ef9c31ab616a","block_type":"box","text":"Additionally, they should seek shareholder approval of","page_number":553,"box":{"x":116,"y":451,"width":394,"height":12}},{"id":"ffad30b4-ae0a-4214-b581-3a9cdde5c87a","block_type":"box","text":"f their capital structure on a periodic basis via a","page_number":553,"box":{"x":510,"y":451,"width":342,"height":12}},{"id":"2d4d4614-e107-4b3d-a03c-f94c4b86787c","block_type":"box","text":"management proposal at the company’s shareholder","page_number":553,"box":{"x":117,"y":467,"width":388,"height":12}},{"id":"bfdb3537-ea7d-44f2-8b46-40e3be68f9f9","block_type":"box","text":"meeting. The proposal should give unaffiliated","page_number":553,"box":{"x":506,"y":467,"width":339,"height":12}},{"id":"1d8aa445-1093-489f-859d-6392a8dd937a","block_type":"box","text":"shareholders the opportunity to affirm the current stru","page_number":553,"box":{"x":116,"y":482,"width":387,"height":12}},{"id":"eacb6445-8733-412f-a908-e4eec80f747a","block_type":"box","text":"cture or establish mechanisms to end or phase out","page_number":553,"box":{"x":504,"y":482,"width":373,"height":12}},{"id":"6c717f92-a657-4e98-9c03-0fef3869f7db","block_type":"box","text":"controlling structures at the appropriate ti","page_number":553,"box":{"x":116,"y":498,"width":297,"height":12}},{"id":"76e63bc1-72f1-4847-b487-6de79ccfc7e4","block_type":"box","text":"me, while minimizing costs to shareholders.","page_number":553,"box":{"x":414,"y":498,"width":322,"height":12}},{"id":"0e753074-404f-441f-887c-5c69d1aa7b03","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long","page_number":553,"box":{"x":117,"y":529,"width":745,"height":12}},{"id":"bc6c43e4-fd83-4956-ae01-c75e2e054e86","block_type":"box","text":"term financial interests of our clients as shareholders, and so we will review any proposed transaction","page_number":553,"box":{"x":116,"y":544,"width":758,"height":12}},{"id":"35e50e57-6cb2-4f4b-b311-9d0a0ce44128","block_type":"box","text":"with that objective in mind. Typically, we review factors such as whether the proposed transaction has","page_number":553,"box":{"x":116,"y":560,"width":760,"height":12}},{"id":"12aa9826-e5c0-4ded-872a-24e55be04d72","block_type":"box","text":"the unanimous support of the board and has been negotiated at arm’s length, and whether the board","page_number":553,"box":{"x":116,"y":575,"width":753,"height":12}},{"id":"ad801e9e-0077-445f-876a-10d0340be706","block_type":"box","text":"or management has clearly explained its economic and strategic rationale. We may also seek","page_number":553,"box":{"x":116,"y":591,"width":699,"height":12}},{"id":"cd0ed4bb-8952-4c5e-975d-de9e00bc8a50","block_type":"box","text":"reassurance from the board that the financial interests of executives and/or board members in a given","page_number":553,"box":{"x":117,"y":606,"width":761,"height":12}},{"id":"e5184e03-b995-4bf0-8524-aee889d0a0f7","block_type":"box","text":"transaction have not adversely affected their ability to place shareholders’ interests before their own.","page_number":553,"box":{"x":116,"y":622,"width":750,"height":12}},{"id":"d6219298-47d2-4962-9126-854137bd6f22","block_type":"box","text":"Where the transaction involves related parties, the recommendation to support should come from the","page_number":553,"box":{"x":116,"y":637,"width":755,"height":12}},{"id":"3a243c2a-9f2b-4101-806c-1e03fb29d6db","block_type":"box","text":"independent directors, a best practice in most markets, and ideally, the terms should have been","page_number":553,"box":{"x":117,"y":653,"width":715,"height":12}},{"id":"fd6cdcea-8c48-49ac-a634-09fa3662e930","block_type":"box","text":"assessed through an independent appraisal process. In addition, it is good practice that it be approved","page_number":553,"box":{"x":116,"y":669,"width":760,"height":11}},{"id":"994616ac-59eb-4ba0-9914-ec8a5406e66f","block_type":"box","text":"by a separate vote of the non-conflicted parties.","page_number":553,"box":{"x":117,"y":684,"width":352,"height":12}},{"id":"d42d4afe-6808-4407-a5fe-2d5d738618d0","block_type":"box","text":"As a matter of sound governance practice, shareholders should have a right to dispose of company","page_number":553,"box":{"x":116,"y":715,"width":738,"height":12}},{"id":"bf40be5b-8601-48fd-ba1b-765633126188","block_type":"box","text":"shares in the open market without unnecessary restriction. In our view, corporate mechanisms","page_number":553,"box":{"x":116,"y":731,"width":700,"height":12}},{"id":"1e302530-c60f-46ae-a26b-35dc9412cd14","block_type":"box","text":"designed to limit shareholders’ ability to sell their shares are contrary to basic property rights. Such","page_number":553,"box":{"x":116,"y":746,"width":732,"height":12}},{"id":"0604cf96-dd47-4bcb-9b60-0b078bbbb93f","block_type":"box","text":"mechanisms can serve to protect and entrench interests other than those of the shareholders. In our","page_number":553,"box":{"x":117,"y":761,"width":745,"height":12}},{"id":"0f977012-b644-4a05-864b-0bf87f42cf55","block_type":"box","text":"view, shareholders are broadly capable of making decisions in their own best interests. We encourage","page_number":553,"box":{"x":116,"y":777,"width":759,"height":12}},{"id":"f0419adf-9ebc-4af6-b683-0357406eda95","block_type":"box","text":"any shareholder rights plans proposed by a board to be subject to shareholder approval upon","page_number":553,"box":{"x":116,"y":793,"width":693,"height":12}},{"id":"3006c470-3089-4f76-9bd6-069b61f29e75","block_type":"box","text":"introduction and periodically thereafter.","page_number":553,"box":{"x":117,"y":808,"width":287,"height":12}},{"id":"6b1623d9-376a-4c19-8a77-c5262029e633","block_type":"box","text":"BlackRock Investment Stewardship","page_number":553,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"05b21fea-1c33-4556-a67a-f507eea4d218","block_type":"box","text":"Global Principles |","page_number":553,"box":{"x":735,"y":909,"width":133,"height":12}},{"id":"3a0ea9ca-5814-417a-99bd-68fe008d2b50","block_type":"box","text":"9","page_number":553,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"2dfa823d-a614-4d13-a8bd-6066d7412109","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":553,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0c28e6b0-3eaa-460f-ba7c-e8df164e3c28","block_type":"box","text":"Executive compensation and benefits","page_number":554,"box":{"x":350,"y":87,"width":305,"height":12}},{"id":"dc0f835e-042c-42f6-9c85-34bbd549b4e8","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value","page_number":554,"box":{"x":117,"y":118,"width":749,"height":12}},{"id":"2d72b2d9-5142-487f-a32b-d0e080ef9f30","block_type":"box","text":"creation. A well-structured compensation policy rewards the successful delivery of strategic,","page_number":554,"box":{"x":116,"y":134,"width":686,"height":12}},{"id":"a2fc686b-f45b-4526-a283-448b4ff3fa5e","block_type":"box","text":"operational, and/or financial goals; encourages an appropriate risk appetite; and aligns the interests of","page_number":554,"box":{"x":116,"y":149,"width":763,"height":12}},{"id":"3d670193-0c35-49c0-bae6-1e77f2938f6a","block_type":"box","text":"shareholders and executives through equity ownership.","page_number":554,"box":{"x":116,"y":165,"width":410,"height":12}},{"id":"caa6882d-fe81-4c97-8bd4-ffd9c4f13f25","block_type":"box","text":"8","page_number":554,"box":{"x":528,"y":165,"width":5,"height":6}},{"id":"19d78f92-2bea-4cfa-9767-4f5f117a8113","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support","page_number":554,"box":{"x":116,"y":196,"width":751,"height":12}},{"id":"f7ab0780-e4b0-44b8-80a6-069f75118e92","block_type":"box","text":"sustained financial value creation for our clients as shareholders. We appreciate when performance","page_number":554,"box":{"x":116,"y":211,"width":744,"height":12}},{"id":"426a5594-f30d-479e-b74f-56d5dcfc632c","block_type":"box","text":"targets incorporate ambitious objectives, and the corresponding metrics are aligned with the","page_number":554,"box":{"x":116,"y":227,"width":687,"height":12}},{"id":"b499f0e1-7757-4cc7-9e0f-e02882f2903e","block_type":"box","text":"company’s strategy and business model. BIS does not have a position on whether companies choose","page_number":554,"box":{"x":116,"y":242,"width":760,"height":12}},{"id":"814f3c84-8941-4cce-afea-423efaf4beb0","block_type":"box","text":"to use sustainability-related criteria in compensation structures, but, where they are included, we look","page_number":554,"box":{"x":116,"y":258,"width":757,"height":12}},{"id":"a3e1683f-8e81-4e3c-9004-f5d04f53170c","block_type":"box","text":"to companies to be as rigorous as they would be in setting other financial or operational targets. We","page_number":554,"box":{"x":116,"y":273,"width":745,"height":12}},{"id":"d25dba7b-a2a5-4ea7-adba-ed65debad9b1","block_type":"box","text":"appreciate when long-term incentive plans encompass timeframes that: 1) are distinct from annual","page_number":554,"box":{"x":116,"y":289,"width":735,"height":12}},{"id":"14656438-8b5c-4ac5-875e-576ba630b370","block_type":"box","text":"executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":554,"box":{"x":116,"y":304,"width":724,"height":12}},{"id":"e2210834-46d8-41a7-b7a3-f8ace0960bd1","block_type":"box","text":"results over a period of years.","page_number":554,"box":{"x":117,"y":320,"width":225,"height":12}},{"id":"b466cb1a-51d3-4695-adff-6755622947f4","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":554,"box":{"x":116,"y":351,"width":757,"height":12}},{"id":"4559f846-1628-49a6-b90b-e52feb4dd185","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may","page_number":554,"box":{"x":116,"y":366,"width":720,"height":12}},{"id":"4e3e32b0-3947-4482-9406-2f27084f2ada","block_type":"box","text":"include the company’s risk profile, the environment it operates in, and the individuals the board is trying","page_number":554,"box":{"x":117,"y":382,"width":770,"height":12}},{"id":"cb83c2a5-da1d-4a59-8f2e-06f3d856522a","block_type":"box","text":"to attract and retain. We look to the compensation committees to guard against contractual","page_number":554,"box":{"x":116,"y":397,"width":679,"height":12}},{"id":"ba1c6ca7-a9ec-41f1-9fc4-ef887152f28c","block_type":"box","text":"arrangements that would entitle executives to material compensation for early termination of their","page_number":554,"box":{"x":116,"y":413,"width":726,"height":12}},{"id":"955e8d81-a6a6-4bd8-8ad7-0365e8d5aced","block_type":"box","text":"employment. Finally, we look for pension contributions and other deferred compensation arrangements","page_number":554,"box":{"x":116,"y":428,"width":770,"height":12}},{"id":"39008c27-e7f7-4eb6-b60b-de3caf46ce92","block_type":"box","text":"to be reasonable in light of market practices or the company’s business and executive compensation","page_number":554,"box":{"x":116,"y":444,"width":752,"height":12}},{"id":"53fd28d2-95a8-4d25-aae6-a136286c1418","block_type":"box","text":"strategies.","page_number":554,"box":{"x":116,"y":459,"width":82,"height":12}},{"id":"e1de6dca-3b58-4642-b24d-6959146422b1","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance.","page_number":554,"box":{"x":116,"y":490,"width":755,"height":12}},{"id":"9c917dbe-227c-4012-ae6a-6a3694bf7b22","block_type":"box","text":"Where discretion has been used by the compensation committee, or its equivalent, we appreciate","page_number":554,"box":{"x":116,"y":506,"width":730,"height":12}},{"id":"2b0c29d6-a947-4957-828c-e53db8719057","block_type":"box","text":"disclosure relating to how and why the discretion was used, and how the adjusted outcome is aligned","page_number":554,"box":{"x":116,"y":521,"width":757,"height":12}},{"id":"6d4928f9-ae3e-4de4-b599-d5f7fe9b8802","block_type":"box","text":"with the interests of shareholders. In addition, we acknowledge that the use of peer group evaluation","page_number":554,"box":{"x":116,"y":537,"width":751,"height":12}},{"id":"64953c9d-e8e0-43e1-bf7c-4e9b0cf6b8a6","block_type":"box","text":"by compensation committees can help ensure competitive pay. However, we encourage companies to","page_number":554,"box":{"x":117,"y":552,"width":763,"height":12}},{"id":"5d314a07-0216-46a4-881b-9694a4bc9571","block_type":"box","text":"clearly explain how compensation outcomes have rewarded performance rather than solely base","page_number":554,"box":{"x":116,"y":568,"width":724,"height":12}},{"id":"8f4df8f5-2ead-413b-9747-347741cdbd18","block_type":"box","text":"increases in total compensation on peer benchmarking.","page_number":554,"box":{"x":117,"y":583,"width":416,"height":12}},{"id":"9d53b11a-6f0a-498e-857d-9f6d06ed6215","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such","page_number":554,"box":{"x":116,"y":614,"width":755,"height":12}},{"id":"04711e40-fbf8-4e29-b8d3-d3d9c61220c2","block_type":"box","text":"provisions could require executives to forgo awards when compensation was based on faulty financial","page_number":554,"box":{"x":117,"y":630,"width":760,"height":12}},{"id":"ed55fd48-43fc-43a0-85ec-164225aae226","block_type":"box","text":"statements or deceptive business practices, or when their behavior caused material financial harm to","page_number":554,"box":{"x":116,"y":645,"width":754,"height":12}},{"id":"30a6ef8f-f900-41d6-89fc-598bf6d6ff03","block_type":"box","text":"shareholders, material reputational risk to the company, or resulted in a criminal investigation.","page_number":554,"box":{"x":116,"y":661,"width":694,"height":12}},{"id":"79f5547e-4d4c-41b5-a336-e23128aa1da3","block_type":"box","text":"In our view, non-executive directors should be compensated in a manner that is commensurate with","page_number":554,"box":{"x":117,"y":692,"width":740,"height":12}},{"id":"f39f9f97-1336-4103-8bb7-f09c02c3cabf","block_type":"box","text":"the time and effort expended in fulfilling their professional responsibilities. Additionally, these","page_number":554,"box":{"x":116,"y":707,"width":686,"height":12}},{"id":"bb91a872-db80-4c2b-9b7b-27356673748e","block_type":"box","text":"compensation arrangements should not risk compromising directors’ independence or aligning their","page_number":554,"box":{"x":116,"y":723,"width":739,"height":12}},{"id":"3b3c63f1-1135-4249-bec8-a07400daa5d0","block_type":"box","text":"interests too closely with those of the management, whom they are charged with overseeing.","page_number":554,"box":{"x":117,"y":738,"width":687,"height":12}},{"id":"8d5d1b1b-1d90-4b45-87fa-2c9fb2d5c179","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether","page_number":554,"box":{"x":116,"y":769,"width":750,"height":12}},{"id":"b14ebb22-67c1-4e9d-b7ee-f8440eba4283","block_type":"box","text":"the board’s approach to executive compensation is rigorous in light of the company’s stated long-term","page_number":554,"box":{"x":116,"y":785,"width":755,"height":12}},{"id":"b6f48b56-786d-48a8-a5bf-7a5a95b1e511","block_type":"box","text":"corporate strategy and specific circumstances, as well as local market and policy developments.","page_number":554,"box":{"x":116,"y":800,"width":713,"height":12}},{"id":"23f3f465-0436-467a-ad94-8b404755090b","block_type":"box","text":"8","page_number":554,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"115f6704-1cd4-472f-b10f-1666fce4fe4d","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":554,"box":{"x":170,"y":867,"width":664,"height":9}},{"id":"b224a73c-daa7-4828-91f2-da81ddf68be8","block_type":"box","text":"different markets.","page_number":554,"box":{"x":170,"y":880,"width":102,"height":7}},{"id":"6e568402-dcde-4b74-81c5-7dda3e3e8945","block_type":"box","text":"BlackRock Investment Stewardship","page_number":554,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"ecd4a493-d8ce-4319-9b70-77a3ac022476","block_type":"box","text":"Global Principles |","page_number":554,"box":{"x":726,"y":909,"width":132,"height":12}},{"id":"ff061dba-41ec-4922-9594-eb3a4007f316","block_type":"box","text":"10","page_number":554,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"d556b99c-618b-4ed0-81f6-a7f6b8314c99","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":554,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9265d3ea-78cc-40f3-b1bc-3012f0166421","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance,","page_number":555,"box":{"x":116,"y":87,"width":745,"height":12}},{"id":"cc4fc60f-98b5-4d6c-92da-6ca06083297d","block_type":"box","text":"BIS may not support management’s proposals to approve compensation, where they are on the","page_number":555,"box":{"x":117,"y":102,"width":715,"height":13}},{"id":"846cf86f-a6ac-4fd4-b31c-5ee0eb2eac51","block_type":"box","text":"agenda. We may also not support members of the compensation committee or equivalent board","page_number":555,"box":{"x":116,"y":118,"width":719,"height":12}},{"id":"ac5ba093-3b6c-40a5-9477-fc05167619cf","block_type":"box","text":"members for poor compensation practices or structures.","page_number":555,"box":{"x":117,"y":134,"width":421,"height":11}},{"id":"18d51b18-a12f-4e45-a440-37dc28fcaed3","block_type":"box","text":"Shareholder protections and other corporate governance matters","page_number":555,"box":{"x":239,"y":172,"width":527,"height":12}},{"id":"5d14ca4b-d914-4c65-9589-96743fd47184","block_type":"box","text":"Corporate form","page_number":555,"box":{"x":116,"y":203,"width":127,"height":12}},{"id":"a47c0c96-2e95-48c2-b207-36e5e742a6b7","block_type":"box","text":"In our view, it is the responsibility of the board to determine the corporate form that is most appropriate","page_number":555,"box":{"x":117,"y":234,"width":766,"height":12}},{"id":"cb59bba5-d68b-43a2-99a0-41bed72a37d9","block_type":"box","text":"given the company’s purpose and business model.","page_number":555,"box":{"x":116,"y":250,"width":376,"height":12}},{"id":"0bf8face-9158-42d7-9ee9-793bb9553711","block_type":"box","text":"9","page_number":555,"box":{"x":494,"y":250,"width":5,"height":6}},{"id":"2d24a215-6814-4d44-8342-207b1c415cd7","block_type":"box","text":"We look to companies proposing to change their","page_number":555,"box":{"x":500,"y":250,"width":369,"height":12}},{"id":"431e2a18-e903-419c-b0be-0b6667cf28c8","block_type":"box","text":"corporate form to a public benefit corporation, or similar entity, to put it to a shareholder vote if not","page_number":555,"box":{"x":116,"y":265,"width":731,"height":12}},{"id":"0620399f-f0d1-450a-9d09-af5d46fbab6d","block_type":"box","text":"already required to do so under applicable law. We appreciate when supporting documentation from","page_number":555,"box":{"x":116,"y":281,"width":748,"height":12}},{"id":"69952ba4-c072-4991-abe1-6f9969a6ac5a","block_type":"box","text":"companies or shareholders proposing to alter the corporate form clearly explains how the interests of","page_number":555,"box":{"x":116,"y":296,"width":755,"height":12}},{"id":"19ecbd75-1caf-4311-9513-a19217009632","block_type":"box","text":"shareholders and different stakeholders would be impacted as well as the accountability and voting","page_number":555,"box":{"x":116,"y":312,"width":741,"height":12}},{"id":"c1d54d42-25ac-43ce-a038-c4ec0720e19b","block_type":"box","text":"mechanisms that would be available to shareholders. We generally support management proposals if","page_number":555,"box":{"x":117,"y":327,"width":756,"height":12}},{"id":"f5e00f30-cb39-42ff-8ac2-36f04c5c4c65","block_type":"box","text":"our analysis indicates that shareholders’ financial interests are adequately protected. Corporate form","page_number":555,"box":{"x":116,"y":343,"width":752,"height":12}},{"id":"3abaa062-7f5e-481f-a9e4-79e732fa1386","block_type":"box","text":"shareholder proposals are evaluated on a case-by-case basis.","page_number":555,"box":{"x":116,"y":358,"width":468,"height":12}},{"id":"9f7333b7-e1b0-4bb4-87b8-a91249f9f971","block_type":"box","text":"Shareholder proposals","page_number":555,"box":{"x":409,"y":397,"width":187,"height":12}},{"id":"b801da1b-d85e-492c-b7ce-c5862505719b","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder","page_number":555,"box":{"x":117,"y":428,"width":717,"height":12}},{"id":"3bbe16ec-b6c2-4eb0-9079-68d8064db1b4","block_type":"box","text":"meeting, as long as certain requirements are met. Shareholder proposals span a wide range of topics,","page_number":555,"box":{"x":117,"y":444,"width":762,"height":12}},{"id":"4fa5df3e-3f5b-4ec2-9b7f-51a4dcb737a8","block_type":"box","text":"including governance reforms, capital management, and changes in the management or disclosure of","page_number":555,"box":{"x":117,"y":459,"width":758,"height":12}},{"id":"90727a0b-58f4-469e-970d-80b136a59796","block_type":"box","text":"sustainability-related risks. These proposals have a varying degree of relevance for companies across","page_number":555,"box":{"x":116,"y":475,"width":763,"height":12}},{"id":"cc62fc3c-5038-4005-ad3d-70548266ca62","block_type":"box","text":"sectors, locations, and business models.","page_number":555,"box":{"x":116,"y":490,"width":307,"height":11}},{"id":"436376a4-a196-4643-a656-7af61f6f3a40","block_type":"box","text":"BIS takes a case-by-case approach to voting on shareholder proposals and maintains a singular focus","page_number":555,"box":{"x":117,"y":521,"width":764,"height":12}},{"id":"71c13310-3022-4271-a43a-5e17c18a2637","block_type":"box","text":"on the proposal’s implications for long-term financial value creation for shareholders. Our analysis","page_number":555,"box":{"x":116,"y":537,"width":730,"height":12}},{"id":"e8e366f7-ce80-4c35-8c19-b7e642873b3c","block_type":"box","text":"considers whether a shareholder proposal addresses a material risk that may impact a company’s","page_number":555,"box":{"x":116,"y":552,"width":732,"height":12}},{"id":"627a8632-981b-4f37-b9ea-25b21cb20d87","block_type":"box","text":"long-term financial performance. BIS may support shareholder proposals that request disclosures that","page_number":555,"box":{"x":117,"y":568,"width":760,"height":12}},{"id":"df809fb5-aa17-4986-a52b-8b8cc2923173","block_type":"box","text":"help us, as long-term investors on behalf of our clients, better understand the material risks and","page_number":555,"box":{"x":117,"y":583,"width":713,"height":12}},{"id":"cf37c988-c83c-4736-94bd-ebdbe94214d2","block_type":"box","text":"opportunities companies face and how they are managing them, especially where this information is","page_number":555,"box":{"x":116,"y":599,"width":747,"height":12}},{"id":"df4da07e-bbdd-412c-beb4-dd842713b7f8","block_type":"box","text":"additive given the company’s existing disclosures. We look for consistency between the specific","page_number":555,"box":{"x":116,"y":614,"width":715,"height":12}},{"id":"947a8143-9c9d-4020-9551-74dcaac9de5c","block_type":"box","text":"request formally made in the proposal, the supporting documentation, and the proponents’ other","page_number":555,"box":{"x":117,"y":630,"width":717,"height":12}},{"id":"47e69876-06fb-4c2d-bbbf-b48c6f345ace","block_type":"box","text":"communications on the issues. We also assess the company’s practices and disclosures and the costs","page_number":555,"box":{"x":116,"y":645,"width":769,"height":12}},{"id":"5ceadea9-516a-41c8-a6eb-fc5bb6a6af6d","block_type":"box","text":"and benefits to the company of meeting the request made in the proposal. We take into consideration a","page_number":555,"box":{"x":116,"y":661,"width":767,"height":12}},{"id":"6a1e3604-8454-4226-bec5-7a402e6a434c","block_type":"box","text":"company’s governance practices and disclosures against those of their peers.","page_number":555,"box":{"x":116,"y":676,"width":577,"height":12}},{"id":"01c5dedb-67a6-4cf6-b89f-a113fbb9282b","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value","page_number":555,"box":{"x":117,"y":707,"width":762,"height":12}},{"id":"17c55877-f718-4e61-8764-a59e9daadcff","block_type":"box","text":"or that seek to micromanage companies. We take into consideration the legal effect of the proposal, as","page_number":555,"box":{"x":116,"y":723,"width":764,"height":12}},{"id":"f7122228-81bd-4636-9146-f436d4cd03c5","block_type":"box","text":"shareholder proposals may be advisory or legally binding depending on the jurisdiction, while others","page_number":555,"box":{"x":116,"y":738,"width":741,"height":12}},{"id":"6d4eec46-85fc-4a88-9c16-58e1531cb5b1","block_type":"box","text":"may make requests that would be deemed illegal in a given jurisdiction.","page_number":555,"box":{"x":117,"y":754,"width":528,"height":12}},{"id":"0ab376c0-e5e9-4842-aa78-9db8950057d2","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization","page_number":555,"box":{"x":117,"y":785,"width":740,"height":12}},{"id":"6a04097a-4181-47ef-acdb-d58943fe066a","block_type":"box","text":"that has submitted or advised on the proposal. We recognize that some shareholder proposals bundle","page_number":555,"box":{"x":116,"y":800,"width":757,"height":12}},{"id":"84dec922-d88f-4830-8c98-1af41c36575e","block_type":"box","text":"topics and/or specific requests. Further, the proponent’s supporting statement may refer to topics that","page_number":555,"box":{"x":116,"y":816,"width":753,"height":12}},{"id":"9836db2d-5caf-4adc-ae4e-439f6b10beef","block_type":"box","text":"are not directly related to the request made in the proposal. In voting on behalf of clients, we must vote","page_number":555,"box":{"x":116,"y":831,"width":767,"height":12}},{"id":"798a891b-f016-4f46-af0f-9e76647397aa","block_type":"box","text":"9","page_number":555,"box":{"x":143,"y":880,"width":4,"height":5}},{"id":"dde03091-0dd4-4b2e-936d-92d594c76b39","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":555,"box":{"x":170,"y":880,"width":457,"height":9}},{"id":"ccb0c249-08f3-4e52-976b-e7e4656af59c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":555,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"f13f63ce-884c-4b00-a5a3-a36595f4208f","block_type":"box","text":"Global Principles |","page_number":555,"box":{"x":726,"y":909,"width":132,"height":12}},{"id":"02c9f170-ca80-454f-9dc0-0a8dea35518f","block_type":"box","text":"11","page_number":555,"box":{"x":866,"y":909,"width":15,"height":9}},{"id":"b76ab70a-0409-4d4d-8e80-3a3bea5a08c0","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":555,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1aa07f90-c944-413a-9b8a-47a900c16799","block_type":"box","text":"yes or no on the proposal as phrased by the proponent. Therefore, when we vote in support of a","page_number":556,"box":{"x":116,"y":87,"width":720,"height":12}},{"id":"c7d95c7a-dbd9-4b2f-9b45-317f59da01ba","block_type":"box","text":"proposal, we are not necessarily endorsing every element of the proposal or the reasoning, objectives,","page_number":556,"box":{"x":117,"y":102,"width":765,"height":13}},{"id":"77b074c6-0114-40fc-9444-7913ac969935","block_type":"box","text":"or supporting statement of the proponent. We may support a proposal for different reasons than those","page_number":556,"box":{"x":116,"y":118,"width":762,"height":12}},{"id":"7eac50ec-8112-46a2-91c3-4c7ac92491bd","block_type":"box","text":"put forth by the proponent, when we believe that overall it may advance our clients’ long-term financial","page_number":556,"box":{"x":117,"y":134,"width":762,"height":12}},{"id":"ca0fbc24-44aa-4050-a7ed-dd67fc5cbc58","block_type":"box","text":"interests.","page_number":556,"box":{"x":117,"y":149,"width":72,"height":10}},{"id":"03f2fb89-8c36-41cb-b516-0d6eb20a2b4b","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that","page_number":556,"box":{"x":117,"y":180,"width":752,"height":12}},{"id":"1dbe801c-db4b-4c69-896c-b8567c0ed960","block_type":"box","text":"place restrictions and limitations on how BlackRock can interact with the companies in which we invest","page_number":556,"box":{"x":117,"y":196,"width":766,"height":11}},{"id":"08972365-f932-46c8-b13b-8b73432dec03","block_type":"box","text":"on behalf of our clients. BlackRock does not nominate directors for board elections or submit","page_number":556,"box":{"x":116,"y":211,"width":692,"height":10}},{"id":"a9ee1d7f-f722-4f24-bd9f-9b2a2c61ff05","block_type":"box","text":"shareholder proposals to companies. Non-compliance with these requirements could adversely affect","page_number":556,"box":{"x":116,"y":227,"width":757,"height":12}},{"id":"34a9f5c4-62b1-4750-bfa5-d719248de411","block_type":"box","text":"BlackRock’s ability to serve its clients’ interests.","page_number":556,"box":{"x":117,"y":242,"width":358,"height":12}},{"id":"2a526969-03ae-46e1-a504-a6f8329ba45c","block_type":"box","text":"Material sustainability-related risks and opportunities","page_number":556,"box":{"x":287,"y":281,"width":431,"height":12}},{"id":"b4c23f5a-f6c2-4699-a40a-02970ed411da","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks","page_number":556,"box":{"x":116,"y":312,"width":758,"height":12}},{"id":"5c407878-cd54-499d-aadd-a3bbf2ae964b","block_type":"box","text":"and opportunities, is an important component of having an effective governance framework that","page_number":556,"box":{"x":116,"y":327,"width":714,"height":12}},{"id":"d8853c84-4362-4427-97d0-3aa82cf4c57f","block_type":"box","text":"supports durable, long-term financial value creation.","page_number":556,"box":{"x":116,"y":343,"width":385,"height":12}},{"id":"36f53d09-7dcc-4413-a282-45195bac76a1","block_type":"box","text":"10","page_number":556,"box":{"x":503,"y":343,"width":11,"height":6}},{"id":"36976aaf-2f56-4854-84ed-4fbd870ee2ab","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate","page_number":556,"box":{"x":116,"y":374,"width":703,"height":12}},{"id":"4a981626-9d1a-4871-8080-12cd5e417c30","block_type":"box","text":"companies’ strategy and business practices related to material sustainability-related risks and","page_number":556,"box":{"x":116,"y":389,"width":699,"height":12}},{"id":"2197bdf0-7177-4f3b-bdb7-43b42e2fcccd","block_type":"box","text":"opportunities. We find it helpful when companies’ disclosures demonstrate that they have a resilient","page_number":556,"box":{"x":116,"y":405,"width":743,"height":12}},{"id":"0794628b-8aba-487e-9cdc-ef79b59a2da1","block_type":"box","text":"business model that integrates material sustainability-related risks and opportunities into their strategy,","page_number":556,"box":{"x":117,"y":420,"width":766,"height":12}},{"id":"e96f8686-93c6-4a50-8dd6-ee4292ebf41b","block_type":"box","text":"risk management, and metrics and targets, including industry-specific metrics.","page_number":556,"box":{"x":117,"y":436,"width":583,"height":12}},{"id":"2903ebef-1b60-479d-a882-111b80504517","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions.","page_number":556,"box":{"x":116,"y":467,"width":766,"height":12}},{"id":"0615aee4-c2b0-4a50-96b4-c058f0adc2fc","block_type":"box","text":"The International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one","page_number":556,"box":{"x":116,"y":482,"width":743,"height":12}},{"id":"51a82dc8-f4e6-4ab7-9028-f8cba3b558ad","block_type":"box","text":"such approach to standardization that we find useful in our analysis.","page_number":556,"box":{"x":116,"y":498,"width":503,"height":12}},{"id":"88564c33-fd1e-4cef-9bba-b014f940ee05","block_type":"box","text":"11","page_number":556,"box":{"x":622,"y":498,"width":9,"height":6}},{"id":"2e234e5f-8a33-4c5c-94d5-8dd402992dab","block_type":"box","text":"However, we do not mandate","page_number":556,"box":{"x":633,"y":498,"width":228,"height":11}},{"id":"abc5a043-d01c-4ba7-9984-a5a9a3262782","block_type":"box","text":"any specific disclosure framework companies should use, and recognize that companies may report","page_number":556,"box":{"x":116,"y":513,"width":747,"height":12}},{"id":"eea50e8b-90a3-4a16-9d20-c532ec65df2b","block_type":"box","text":"using different standards, some of which may be required by regulation. In such cases, we ask that","page_number":556,"box":{"x":117,"y":529,"width":739,"height":12}},{"id":"b5b2c433-7616-4d3d-801c-b672c10cbc79","block_type":"box","text":"companies highlight the metrics that are industry- or company-specific.","page_number":556,"box":{"x":116,"y":544,"width":530,"height":12}},{"id":"d19e0891-ebfc-412e-9164-e916ccfeb5e2","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not","page_number":556,"box":{"x":116,"y":576,"width":702,"height":11}},{"id":"b5b40b73-fab1-48e7-b0fa-6175d594ed03","block_type":"box","text":"prescribe timelines regarding when companies should make sustainability-related disclosures but","page_number":556,"box":{"x":117,"y":591,"width":725,"height":12}},{"id":"594912e3-b825-4533-ab9a-f08dc184ddf0","block_type":"box","text":"appreciate it when companies produce them sufficiently in advance of their shareholder meeting, to the","page_number":556,"box":{"x":116,"y":606,"width":770,"height":12}},{"id":"19544854-a184-4672-94ac-c3f4fa35c51a","block_type":"box","text":"best of their abilities, to provide investors with time to assess the data and make informed voting","page_number":556,"box":{"x":117,"y":622,"width":718,"height":12}},{"id":"a10f1962-5b78-4765-b845-46dc8e6989e8","block_type":"box","text":"decisions.","page_number":556,"box":{"x":116,"y":638,"width":79,"height":9}},{"id":"eeb0de3d-cbb9-4e89-9d84-af4f42f8bb32","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to","page_number":556,"box":{"x":117,"y":668,"width":695,"height":12}},{"id":"2354d4f5-820d-49c2-9e21-0c0fee7a9582","block_type":"box","text":"companies on best practices and disclosures. While not a voting item, we find it helpful to our","page_number":556,"box":{"x":116,"y":684,"width":692,"height":12}},{"id":"135d4484-d6e7-49f8-a05e-38877a1f3e8a","block_type":"box","text":"understanding of investment risk when companies disclose any relevant global sustainability-related","page_number":556,"box":{"x":117,"y":699,"width":740,"height":13}},{"id":"aee4017f-6fff-4e00-acfd-c1e73cb046e8","block_type":"box","text":"10","page_number":556,"box":{"x":144,"y":750,"width":8,"height":5}},{"id":"325717ec-fc5a-4b7d-be5b-be96f33ee2ba","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in a","page_number":556,"box":{"x":171,"y":750,"width":691,"height":10}},{"id":"ff9a52db-58aa-4766-bdbb-ba0e34b21933","block_type":"box","text":"company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":556,"box":{"x":170,"y":763,"width":686,"height":10}},{"id":"2513e7dd-8e0c-4fe8-b3e7-2962f708ad4b","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":556,"box":{"x":170,"y":776,"width":682,"height":10}},{"id":"bcd33087-7106-4fae-8cb7-37069707441e","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":556,"box":{"x":170,"y":789,"width":683,"height":10}},{"id":"62dbf857-ada4-4c31-a3b6-5207722bb365","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":556,"box":{"x":170,"y":802,"width":360,"height":10}},{"id":"19bcec41-9ed4-42c9-b313-d0fef4381bd7","block_type":"box","text":"11","page_number":556,"box":{"x":144,"y":815,"width":7,"height":5}},{"id":"5204360d-18e7-4ee7-9c23-b6e8eb423f95","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards (IFRS)","page_number":556,"box":{"x":170,"y":815,"width":666,"height":10}},{"id":"1d6c46d1-1cf5-40dd-8f7b-8fa5fea441ff","block_type":"box","text":"Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework and the","page_number":556,"box":{"x":171,"y":828,"width":712,"height":10}},{"id":"dbfe0e91-d60b-43da-9561-1b801c94b0b4","block_type":"box","text":"standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":556,"box":{"x":170,"y":841,"width":649,"height":9}},{"id":"fe8a543c-40fd-45e5-a1be-98ac4c13c673","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":556,"box":{"x":170,"y":854,"width":674,"height":9}},{"id":"22f79254-2f7a-4326-b7af-b38972c68e6d","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":556,"box":{"x":170,"y":867,"width":647,"height":9}},{"id":"850557a5-7a10-4145-859e-25700408436e","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":556,"box":{"x":171,"y":880,"width":312,"height":7}},{"id":"789fc569-0252-4772-9ced-615564e33446","block_type":"box","text":"BlackRock Investment Stewardship","page_number":556,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"48f9b752-8e89-42c0-807f-67dac672457b","block_type":"box","text":"Global Principles |","page_number":556,"box":{"x":726,"y":909,"width":132,"height":12}},{"id":"7e073fd3-dd67-4035-b55f-04901bbd3960","block_type":"box","text":"12","page_number":556,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"66c894d6-016d-4c63-8b76-8689ea6bde0a","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":556,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f66da87e-4f3a-4f1a-b948-41225f3e6c3a","block_type":"box","text":"standards adopted, the industry initiatives in which they participate, any peer group benchmarking","page_number":557,"box":{"x":116,"y":87,"width":731,"height":12}},{"id":"bb8c0eb8-55f7-479e-8794-4ed5d41cadbb","block_type":"box","text":"undertaken, and any assurance processes to help investors understand their approach to sustainable","page_number":557,"box":{"x":117,"y":103,"width":758,"height":12}},{"id":"75192e95-8c26-43ff-8692-0276bdec85a5","block_type":"box","text":"and responsible business practices.","page_number":557,"box":{"x":116,"y":118,"width":271,"height":12}},{"id":"82e72d40-d2b7-4c22-9928-863aef716893","block_type":"box","text":"Climate and nature-related risk","page_number":557,"box":{"x":117,"y":149,"width":250,"height":10}},{"id":"16d2c742-980b-424a-a2f1-b46ed0d9096d","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term","page_number":557,"box":{"x":117,"y":180,"width":745,"height":12}},{"id":"324a2ca3-b4d2-4c66-965d-475bcfef0819","block_type":"box","text":"financial value to investors. For companies facing material climate-related risks, we find it helpful when","page_number":557,"box":{"x":116,"y":196,"width":766,"height":12}},{"id":"375cd7a7-812d-48c0-8391-533f85de8382","block_type":"box","text":"they publicly disclose, consistent with their business model and sector, how they intend to deliver long","page_number":557,"box":{"x":116,"y":211,"width":762,"height":12}},{"id":"1631ea6c-cbfa-45b6-a24f-f5e09d496019","block_type":"box","text":"term financial performance through the low-carbon transition, including where available, their transition","page_number":557,"box":{"x":116,"y":227,"width":766,"height":12}},{"id":"b51684e0-d0a3-444b-8851-98b1a8f259c8","block_type":"box","text":"plan.","page_number":557,"box":{"x":117,"y":242,"width":34,"height":12}},{"id":"326a628d-17d1-4ce0-a44a-c8e850c07f34","block_type":"box","text":"12, 13","page_number":557,"box":{"x":153,"y":242,"width":29,"height":7}},{"id":"95794907-e891-46d6-a2dd-acda278afebe","block_type":"box","text":"From company disclosures and engagement, we seek to understand the strategies","page_number":557,"box":{"x":182,"y":242,"width":626,"height":12}},{"id":"66d48fbc-3247-45d2-801e-ae74584fce78","block_type":"box","text":"companies have in place to manage material risks to, and opportunities for, their long-term business","page_number":557,"box":{"x":116,"y":258,"width":748,"height":12}},{"id":"c576e117-ac22-4024-8177-a67b68256057","block_type":"box","text":"model associated with a range of climate-related scenarios.","page_number":557,"box":{"x":117,"y":273,"width":446,"height":12}},{"id":"69bbcd0f-1d0e-4ec0-9524-268720ed4805","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate","page_number":557,"box":{"x":117,"y":304,"width":734,"height":12}},{"id":"30b69fec-620c-4daf-821e-10c7fe3f7d81","block_type":"box","text":"large companies to disclose such climate-related financial information, while in other jurisdictions these","page_number":557,"box":{"x":117,"y":320,"width":767,"height":12}},{"id":"1e6c1ac3-fc94-4bb8-b712-a875e4bfa0cf","block_type":"box","text":"disclosures are viewed as best practice in the market.","page_number":557,"box":{"x":116,"y":335,"width":404,"height":12}},{"id":"8a5706d9-40ca-42b3-8d30-21cbc075b97a","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company","page_number":557,"box":{"x":116,"y":366,"width":726,"height":12}},{"id":"57cc6cf3-3076-4c26-beb4-1127cfd9d691","block_type":"box","text":"specific climate-related risks and opportunities, and informing investment decisions. Such disclosures","page_number":557,"box":{"x":116,"y":382,"width":757,"height":12}},{"id":"15fe9020-3f08-4777-88d6-6ea0883cdc7f","block_type":"box","text":"also provide investors with insights into how companies are managing the risks associated with a","page_number":557,"box":{"x":116,"y":397,"width":726,"height":12}},{"id":"04e704f1-78ba-4c23-9245-b5f0a71ba157","block_type":"box","text":"transition to a low-carbon economy by managing their own carbon emissions or emissions intensities","page_number":557,"box":{"x":116,"y":413,"width":754,"height":12}},{"id":"442db233-f290-4be8-a8f2-be6905b82208","block_type":"box","text":"to the extent financially practicable.","page_number":557,"box":{"x":116,"y":428,"width":266,"height":12}},{"id":"d1fdc835-3734-4f49-a707-93fca7f2ffa7","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-,","page_number":557,"box":{"x":116,"y":459,"width":723,"height":12}},{"id":"30b61715-d13e-4501-bfe7-57ceac650b4b","block_type":"box","text":"medium- and long-term targets, ideally science-based where these are available for their sector, for","page_number":557,"box":{"x":117,"y":475,"width":742,"height":12}},{"id":"715e2c0f-842b-47ae-841d-1ddfc409751e","block_type":"box","text":"scope 1 and 2 greenhouse gas emissions (GHG) reductions and to demonstrate how their targets are","page_number":557,"box":{"x":116,"y":490,"width":760,"height":12}},{"id":"a75baa44-6406-4846-a22e-6eee3bf8ce88","block_type":"box","text":"consistent with the long-term financial interests of their investors.","page_number":557,"box":{"x":116,"y":506,"width":486,"height":12}},{"id":"9d02131a-2aaa-4520-869b-1eae43bf56fb","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this","page_number":557,"box":{"x":116,"y":537,"width":766,"height":12}},{"id":"e7938196-c827-4646-b3be-517a30a1b86b","block_type":"box","text":"stage, we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity,","page_number":557,"box":{"x":116,"y":552,"width":749,"height":12}},{"id":"5fdbc35d-8441-40dc-b244-bf8bf8cb1d2b","block_type":"box","text":"regulatory uncertainty, concerns about double-counting, and lack of direct control by companies. We","page_number":557,"box":{"x":117,"y":568,"width":749,"height":12}},{"id":"ff2fb3a5-b7da-46cb-bf1f-ad5e5872aef1","block_type":"box","text":"welcome disclosures and commitments that companies choose to make regarding material scope 3","page_number":557,"box":{"x":116,"y":583,"width":744,"height":12}},{"id":"cf844e1d-49b0-459a-ade1-bf48200aaf47","block_type":"box","text":"emissions and recognize that these are provided on a good-faith basis as methodology develops.","page_number":557,"box":{"x":116,"y":599,"width":728,"height":12}},{"id":"b04a080d-31e7-45e6-82bb-18b44a5dd93e","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or","page_number":557,"box":{"x":117,"y":630,"width":742,"height":12}},{"id":"fb8ba660-8c87-4839-b8fb-8a5afe34d4f0","block_type":"box","text":"supply chains are materially reliant on natural capital, nature-related risks and opportunities may affect","page_number":557,"box":{"x":116,"y":645,"width":765,"height":12}},{"id":"7b494caf-a049-456b-8d89-e48d6a8bcae2","block_type":"box","text":"12","page_number":557,"box":{"x":144,"y":763,"width":8,"height":5}},{"id":"716af1b8-c01e-4248-aaf0-62c438b94b51","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":557,"box":{"x":170,"y":763,"width":685,"height":10}},{"id":"dbc73dea-8356-429e-98e9-9beda9b5e550","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":557,"box":{"x":170,"y":776,"width":670,"height":10}},{"id":"0cff64e4-edc4-4ebb-92c4-844d2844fd6c","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":557,"box":{"x":171,"y":789,"width":691,"height":10}},{"id":"b8a498db-8416-40ed-a1dc-be5a6450b65b","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives,","page_number":557,"box":{"x":170,"y":802,"width":710,"height":10}},{"id":"5c48890e-0cf6-44d7-987f-d194325fab53","block_type":"box","text":"and actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":557,"box":{"x":170,"y":815,"width":709,"height":10}},{"id":"3ac3bf6f-15cd-4a55-a24f-3211e3634f93","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. While transition plans can","page_number":557,"box":{"x":170,"y":828,"width":710,"height":10}},{"id":"aec25624-4e95-4ed9-8622-a2495179cc36","block_type":"box","text":"be helpful disclosure, BIS does not make the preparation and production of transition plans a voting issue. BIS may","page_number":557,"box":{"x":170,"y":841,"width":684,"height":9}},{"id":"4ea7ff56-19b2-4f35-8065-4a2053ae1399","block_type":"box","text":"engage companies that have chosen to publish a transition plan to understand their planned actions and resource","page_number":557,"box":{"x":170,"y":854,"width":675,"height":9}},{"id":"3cb4c437-7c9e-465c-b8c9-1ef3ab3606b8","block_type":"box","text":"implications. Website accessed in December 2025.","page_number":557,"box":{"x":170,"y":867,"width":303,"height":9}},{"id":"6a0701d4-006a-40b3-b841-f811a0c35b2e","block_type":"box","text":"13","page_number":557,"box":{"x":144,"y":880,"width":8,"height":5}},{"id":"8212a2db-e5ec-4b2e-bc9d-41d5aca379e7","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December 2025.","page_number":557,"box":{"x":171,"y":880,"width":703,"height":9}},{"id":"869ab66b-a22b-425f-a49b-68231274d45e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":557,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"ed834abf-d13b-48af-8e38-6d54b6e14186","block_type":"box","text":"Global Principles |","page_number":557,"box":{"x":726,"y":909,"width":132,"height":12}},{"id":"1914226e-4f7f-47fb-afcd-e8b820922ef8","block_type":"box","text":"13","page_number":557,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"ccaa603a-e1d3-44eb-ace2-678ff64d3774","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":557,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3b8a1c95-0ebc-407a-9611-5ea92947d4ec","block_type":"box","text":"their ability to generate long-term financial returns.","page_number":558,"box":{"x":116,"y":87,"width":372,"height":12}},{"id":"d175ae39-0980-4a5a-9d81-e8e703dd5319","block_type":"box","text":"14","page_number":558,"box":{"x":491,"y":87,"width":11,"height":6}},{"id":"7f53be60-9351-465c-91c4-cddbd4c778d0","block_type":"box","text":"For these companies, we rely on disclosures to","page_number":558,"box":{"x":502,"y":87,"width":360,"height":12}},{"id":"b9de1f96-dced-4803-a046-cba8da164fae","block_type":"box","text":"understand how their strategies consider nature-related impacts and dependencies and to assess how","page_number":558,"box":{"x":117,"y":103,"width":765,"height":12}},{"id":"d0da95d5-c412-4318-a2d8-ab0029bd9249","block_type":"box","text":"the board oversees these risks.","page_number":558,"box":{"x":116,"y":118,"width":232,"height":10}},{"id":"71e2e515-a380-4483-957a-a1a0ff959afc","block_type":"box","text":"15","page_number":558,"box":{"x":351,"y":118,"width":10,"height":6}},{"id":"5e8b6779-3d55-4b41-96ce-4ae4fc38ac4c","block_type":"box","text":"Companies’ impact on their workforce, supply chains, and communities","page_number":558,"box":{"x":117,"y":149,"width":579,"height":12}},{"id":"395b223a-3903-4d35-91b8-925ea99ea7aa","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term","page_number":558,"box":{"x":117,"y":180,"width":768,"height":12}},{"id":"626e62a8-f8d6-40a9-baa0-9a49755c4356","block_type":"box","text":"financial performance. For many companies, key stakeholders include employees, business supply","page_number":558,"box":{"x":116,"y":196,"width":741,"height":12}},{"id":"eaf974d6-4ade-44ad-bb6e-94660a490b4d","block_type":"box","text":"chains, clients and consumers, regulators, and the communities in which they operate.","page_number":558,"box":{"x":116,"y":211,"width":647,"height":12}},{"id":"8cfdc03c-2731-4460-b3ce-6926e97106e7","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives","page_number":558,"box":{"x":117,"y":242,"width":769,"height":12}},{"id":"30ec8b46-6f21-40ac-82d0-948a8430ff52","block_type":"box","text":"are more likely to deliver durable, long-term financial performance. By contrast, we have found that","page_number":558,"box":{"x":116,"y":258,"width":739,"height":12}},{"id":"595e3f24-839f-4c8f-b649-2515d4c9df36","block_type":"box","text":"poor relationships may create adverse impacts that could expose companies to legal, regulatory,","page_number":558,"box":{"x":117,"y":273,"width":722,"height":12}},{"id":"bebf233e-954a-46c4-94b0-1d58aa30e542","block_type":"box","text":"operational, and reputational risks. This is particularly relevant to a company’s workforce, which is","page_number":558,"box":{"x":116,"y":289,"width":730,"height":12}},{"id":"0a2749ef-ab5b-4a78-b254-45141f6817f5","block_type":"box","text":"central to long-term financial value creation.","page_number":558,"box":{"x":116,"y":304,"width":324,"height":12}},{"id":"61f9427b-6f7d-4d22-957a-b0d88ded2fe4","block_type":"box","text":"16","page_number":558,"box":{"x":442,"y":304,"width":11,"height":6}},{"id":"c1674dc9-b2f6-4059-b6b9-0f5c852978ce","block_type":"box","text":"As a long-term shareholder on behalf of our clients, we find it helpful when companies disclose how","page_number":558,"box":{"x":116,"y":335,"width":743,"height":12}},{"id":"32484298-e4df-4870-bc5f-1236f2690086","block_type":"box","text":"they have identified their key stakeholders and considered their interests in business decision-making.","page_number":558,"box":{"x":116,"y":351,"width":763,"height":12}},{"id":"90c3c37e-80e9-4050-aef1-f2c8ad128955","block_type":"box","text":"In addition to understanding broader stakeholder relationships, BIS finds it helpful when companies","page_number":558,"box":{"x":117,"y":366,"width":740,"height":12}},{"id":"908ae15e-c696-40fd-b9f5-a6c51583b82b","block_type":"box","text":"discuss how they consider the needs of their workforce today, and the skills required for their future","page_number":558,"box":{"x":116,"y":382,"width":742,"height":12}},{"id":"e9fa56b4-53d4-415c-997c-5b538d253d43","block_type":"box","text":"business strategy. We are also interested in understanding how the board monitors and engages on","page_number":558,"box":{"x":117,"y":397,"width":747,"height":12}},{"id":"41826d22-8fd3-410e-b122-9e2380aa75c9","block_type":"box","text":"these matters, given it is well positioned to ensure that the approach taken by management is informed","page_number":558,"box":{"x":116,"y":413,"width":770,"height":12}},{"id":"ccb2550c-25cb-4b54-81d2-f53752237fe1","block_type":"box","text":"by and aligns with the company’s strategy. BIS does not direct a company’s policies or practices, which","page_number":558,"box":{"x":117,"y":428,"width":771,"height":12}},{"id":"264f6615-6545-4268-a46f-6118e1006ff0","block_type":"box","text":"are the responsibility of management and the board.","page_number":558,"box":{"x":116,"y":444,"width":394,"height":12}},{"id":"5799f84e-5cde-4a19-88f3-3073bfecdb61","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse","page_number":558,"box":{"x":117,"y":475,"width":754,"height":12}},{"id":"74e10568-1f6e-4dfd-b34b-64ee2ad8523b","block_type":"box","text":"impacts that could arise from their business practices and affect critical relationships with their","page_number":558,"box":{"x":117,"y":490,"width":701,"height":12}},{"id":"0d186ff5-e095-4e24-b843-b7870e87832f","block_type":"box","text":"stakeholders. We encourage companies to implement, to the extent appropriate, monitoring processes","page_number":558,"box":{"x":116,"y":506,"width":767,"height":12}},{"id":"610d7cd9-e65e-4655-a929-df453837242d","block_type":"box","text":"(often referred to as due diligence) to identify and mitigate potential adverse impacts and grievance","page_number":558,"box":{"x":117,"y":521,"width":740,"height":12}},{"id":"53b02029-2d33-43c5-87d9-4f106306585a","block_type":"box","text":"mechanisms to remediate any actual adverse material impacts.","page_number":558,"box":{"x":117,"y":537,"width":474,"height":12}},{"id":"62b57a27-ba89-4ecf-bb77-47247cbce8d7","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key","page_number":558,"box":{"x":116,"y":568,"width":729,"height":12}},{"id":"be956cac-0ce0-4fbd-b277-7a79326e61c5","block_type":"box","text":"stakeholders and may convey concerns about board oversight in our voting on director elections or","page_number":558,"box":{"x":116,"y":583,"width":739,"height":12}},{"id":"6c80295b-0281-4e19-bf83-5cb101b8a047","block_type":"box","text":"supporting a business relevant shareholder proposal when, in our assessment, the board is not acting","page_number":558,"box":{"x":116,"y":599,"width":761,"height":12}},{"id":"0450f391-0bef-493b-b467-4f31e0a100f1","block_type":"box","text":"in shareholders’ long-term financial interests.","page_number":558,"box":{"x":117,"y":614,"width":337,"height":12}},{"id":"b88ab594-4ab2-4220-b648-c03db9d7549f","block_type":"box","text":"BlackRock’s oversight of its investment stewardship activities","page_number":558,"box":{"x":251,"y":653,"width":503,"height":12}},{"id":"f4d619b6-4249-44dd-b726-29c511ae126a","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on","page_number":558,"box":{"x":117,"y":684,"width":736,"height":12}},{"id":"ebf8f357-e377-414a-aa2f-4459dc8d5c27","block_type":"box","text":"behalf of clients at the global and regional level.","page_number":558,"box":{"x":117,"y":699,"width":352,"height":13}},{"id":"35c58340-8cc5-488f-86ee-6bf60ff60d58","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the","page_number":558,"box":{"x":116,"y":730,"width":694,"height":13}},{"id":"8d6e7916-3913-4009-8b9f-52f7276b269d","block_type":"box","text":"Committee) supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to","page_number":558,"box":{"x":117,"y":746,"width":755,"height":12}},{"id":"388eda0b-076c-4b39-86a4-cff15e29a2bd","block_type":"box","text":"14","page_number":558,"box":{"x":144,"y":789,"width":8,"height":5}},{"id":"ff64fbd0-7a65-4389-b48b-7e95c1709d48","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December 2025.","page_number":558,"box":{"x":171,"y":789,"width":697,"height":10}},{"id":"fbb49bae-68a0-4a99-a37f-b2df8a5cba69","block_type":"box","text":"15","page_number":558,"box":{"x":144,"y":802,"width":8,"height":5}},{"id":"03551ce8-9460-4134-90fa-bd696e49842a","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":558,"box":{"x":170,"y":802,"width":660,"height":10}},{"id":"34f22eeb-592a-4542-a6eb-4045be343c66","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of the","page_number":558,"box":{"x":170,"y":815,"width":704,"height":10}},{"id":"54f75958-d547-4dcd-93e4-9d2e0df6d065","block_type":"box","text":"Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":558,"box":{"x":170,"y":828,"width":689,"height":10}},{"id":"adec2fdc-7e08-4a66-859c-7b1fb01e07ce","block_type":"box","text":"some companies may report using different standards, which may be required by regulation, or one of a number of","page_number":558,"box":{"x":170,"y":841,"width":680,"height":9}},{"id":"ae5c4dc3-b3f5-419f-915a-9df91fadf2a8","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":558,"box":{"x":170,"y":854,"width":680,"height":9}},{"id":"01654626-e92a-4696-9f67-b8167c5db952","block_type":"box","text":"16","page_number":558,"box":{"x":144,"y":867,"width":8,"height":5}},{"id":"1d295bcd-b521-49ac-8922-78a063794d4f","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":558,"box":{"x":171,"y":867,"width":677,"height":9}},{"id":"33745438-fdae-44b6-af0e-2fc5e7a618fa","block_type":"box","text":"December 2025.","page_number":558,"box":{"x":171,"y":880,"width":97,"height":7}},{"id":"e7e360f2-7114-469a-b49c-03b33681be64","block_type":"box","text":"BlackRock Investment Stewardship","page_number":558,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"d2fb7872-6e66-428b-98e4-67a08319679d","block_type":"box","text":"Global Principles |","page_number":558,"box":{"x":726,"y":909,"width":132,"height":12}},{"id":"0fe4fcee-8d04-44d9-a332-b2b6103e8ed7","block_type":"box","text":"14","page_number":558,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"9b9e6cc6-3e6e-46bc-9591-f0eb428111c0","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":558,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3fe09a5a-612a-42f0-a1c4-ad9b62cfead6","block_type":"box","text":"policies and procedures as well as market-level stewardship requirements. The Committee reviews","page_number":559,"box":{"x":117,"y":87,"width":740,"height":12}},{"id":"9815b0fe-90c2-46e9-b5b9-b0a349cf36ce","block_type":"box","text":"and approves amendments to the Global Principles and regional voting guidelines. The Committee","page_number":559,"box":{"x":116,"y":102,"width":738,"height":13}},{"id":"a02e3f5d-97f2-416c-8b7f-1b6ac3e1d201","block_type":"box","text":"also reviews periodic reports regarding the votes cast by BIS on behalf of clients, as well as updates","page_number":559,"box":{"x":116,"y":118,"width":749,"height":12}},{"id":"538928c7-ee2a-4b46-bec2-866065967c16","block_type":"box","text":"on material process issues, procedural changes, and other risk oversight considerations. The","page_number":559,"box":{"x":116,"y":134,"width":697,"height":12}},{"id":"3c466901-16a5-4b11-8fe2-bbd1ddc89c08","block_type":"box","text":"Committee is chaired by the Global Heads of the Investment Stewardship function and its members","page_number":559,"box":{"x":117,"y":149,"width":743,"height":12}},{"id":"fbf28c96-6c43-4c10-8a6f-848125e93b4b","block_type":"box","text":"include senior BlackRock executives with legal, risk, and other experience relevant to team oversight","page_number":559,"box":{"x":117,"y":165,"width":752,"height":12}},{"id":"6056fb6b-5c39-481f-8a98-ec62dc4a6b43","block_type":"box","text":"who are independent from the investment stewardship function.","page_number":559,"box":{"x":116,"y":180,"width":477,"height":12}},{"id":"7e6b1bdd-034e-40d0-9e09-81cf376db3e2","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with","page_number":559,"box":{"x":116,"y":211,"width":769,"height":12}},{"id":"02957fba-311f-475f-b679-2553cbd5de66","block_type":"box","text":"the Global Principles and regional voting guidelines. At the regional level, three regional Heads for the","page_number":559,"box":{"x":116,"y":227,"width":761,"height":12}},{"id":"ef225179-2ae3-47db-b642-4bb5c7d017cb","block_type":"box","text":"Americas, APAC, and EMEA oversee BIS’ activities for their specific markets.","page_number":559,"box":{"x":116,"y":242,"width":581,"height":12}},{"id":"80e396cb-0680-4c40-ada4-7c040606cc52","block_type":"box","text":"Vote execution","page_number":559,"box":{"x":440,"y":281,"width":124,"height":9}},{"id":"0a47f3d3-3b59-475e-923d-72013655ea9a","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We","page_number":559,"box":{"x":117,"y":312,"width":739,"height":12}},{"id":"8d25a0cc-f1a0-457c-b033-1b2c623ff3cc","block_type":"box","text":"have processes in place to consider all proxies for which we have voting authority, and submit voting","page_number":559,"box":{"x":117,"y":327,"width":751,"height":12}},{"id":"45ce51d5-6322-4b20-a9ad-08263ce76f96","block_type":"box","text":"decisions, or refrain from voting when logistical issues arise (see below). The BIS Benchmark Policies","page_number":559,"box":{"x":116,"y":343,"width":761,"height":12}},{"id":"14f83579-9e70-49cc-a083-16e2496e0bb3","block_type":"box","text":"– and the vote decisions made consistent with those policies – reflect our reasonable and independent","page_number":559,"box":{"x":116,"y":358,"width":766,"height":12}},{"id":"4b47fbae-7737-4520-af4d-7bf77f49270e","block_type":"box","text":"judgment and are made without regard to the relationship between the issuer of the proxy (or any","page_number":559,"box":{"x":115,"y":374,"width":728,"height":12}},{"id":"4c662e33-cfa2-45c8-b378-3fbef8565913","block_type":"box","text":"shareholder proponent or dissident shareholder) and the Fund, the Fund’s affiliates (if any), BlackRock","page_number":559,"box":{"x":116,"y":389,"width":767,"height":12}},{"id":"3e391b14-b13c-470b-87e8-626ca6efba82","block_type":"box","text":"or BlackRock’s affiliates, or BlackRock employees (see “Conflicts management policies and","page_number":559,"box":{"x":116,"y":405,"width":685,"height":12}},{"id":"65ed3f97-ee2b-4e57-b04c-85f280fa5789","block_type":"box","text":"procedures,” below).","page_number":559,"box":{"x":117,"y":420,"width":157,"height":12}},{"id":"ebe57082-d954-4eeb-93a3-87ebc0dd0188","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well","page_number":559,"box":{"x":117,"y":451,"width":749,"height":12}},{"id":"60f2adba-5da0-4a18-8fe9-2830df03e9a1","block_type":"box","text":"as the cost of voting such proxies on behalf of our clients. These issues include, but are not limited to:","page_number":559,"box":{"x":116,"y":467,"width":761,"height":12}},{"id":"cfad916f-8beb-4899-a044-ccb814ff85d8","block_type":"box","text":"1) untimely notice of shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3)","page_number":559,"box":{"x":118,"y":482,"width":754,"height":12}},{"id":"08e77403-e0dc-4888-bb85-e8056580d79d","block_type":"box","text":"requirements to vote proxies in person; 4) “share-blocking” (requirements that investors who exercise","page_number":559,"box":{"x":117,"y":498,"width":756,"height":12}},{"id":"261765e1-d6bc-41b1-b7b5-e0908f5e31c8","block_type":"box","text":"their voting rights surrender the right to dispose of their holdings from the point at which votes are","page_number":559,"box":{"x":116,"y":513,"width":728,"height":12}},{"id":"1bc86361-71f1-4915-912f-60b7bfe18670","block_type":"box","text":"submitted until after the after the shareholder meeting has occurred); 5) potential difficulties in","page_number":559,"box":{"x":116,"y":529,"width":701,"height":12}},{"id":"29f2d9bf-e444-4fbf-bf2e-09f8a469d0a3","block_type":"box","text":"translating the proxy; 6) regulatory constraints; and 7) requirements to provide local agents with","page_number":559,"box":{"x":116,"y":544,"width":714,"height":12}},{"id":"90765ace-e73b-4c2a-a4b0-ef790500b1a4","block_type":"box","text":"powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":559,"box":{"x":117,"y":560,"width":706,"height":12}},{"id":"29fb01ba-5670-4d1f-9873-5b9df7d39741","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":559,"box":{"x":116,"y":575,"width":742,"height":12}},{"id":"1c6b93e0-5141-4a1d-9b75-b63aaaf9ea61","block_type":"box","text":"BIS votes proxies in these situations on a “best-efforts” basis. In addition, BIS may determine that it is","page_number":559,"box":{"x":117,"y":606,"width":758,"height":12}},{"id":"f33ac730-d639-4a3b-bb4d-542e50f455e9","block_type":"box","text":"generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if","page_number":559,"box":{"x":116,"y":622,"width":755,"height":12}},{"id":"a8df74e0-be6b-4800-8a6b-eacafbcc8c11","block_type":"box","text":"the costs (including but not limited to opportunity costs associated with share-blocking constraints)","page_number":559,"box":{"x":116,"y":637,"width":734,"height":12}},{"id":"f786f0be-4200-47cc-b063-7e547b6b3be8","block_type":"box","text":"associated with exercising a vote are expected to outweigh the benefit the client would derive by voting","page_number":559,"box":{"x":116,"y":653,"width":770,"height":12}},{"id":"f262db86-6073-4543-b077-93b28bdfd2e4","block_type":"box","text":"on the proposal.","page_number":559,"box":{"x":116,"y":669,"width":119,"height":11}},{"id":"420348b7-5ac2-4a83-9099-f29a36d88e4c","block_type":"box","text":"Conflicts management policies and procedures","page_number":559,"box":{"x":311,"y":707,"width":377,"height":12}},{"id":"24a92d8b-f47a-462c-b553-9eb61bba96e5","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business","page_number":559,"box":{"x":117,"y":738,"width":719,"height":12}},{"id":"07d57897-1a97-4359-b5b9-59ec2c129082","block_type":"box","text":"partnership or enterprise-level vendor management activities.","page_number":559,"box":{"x":117,"y":754,"width":454,"height":12}},{"id":"bf8220d0-7523-4c6e-b806-6803104378c7","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’","page_number":559,"box":{"x":117,"y":785,"width":733,"height":12}},{"id":"b3c8514e-ac4f-4158-9594-c7b0023b4f63","block_type":"box","text":"proxy voting activity. 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Our clients have greater control over proxy voting because of Voting","page_number":561,"box":{"x":116,"y":180,"width":763,"height":12}},{"id":"2c0a56e0-5343-4be0-9857-47a02024277d","block_type":"box","text":"Choice.","page_number":561,"box":{"x":117,"y":196,"width":54,"height":9}},{"id":"0b397a14-5654-4497-8633-87bd3467f591","block_type":"box","text":"21","page_number":561,"box":{"x":173,"y":196,"width":10,"height":6}},{"id":"555f25fe-1788-4c78-8719-36e26370a09f","block_type":"box","text":"Reporting and vote transparency","page_number":561,"box":{"x":369,"y":234,"width":267,"height":12}},{"id":"0ffdaea1-b0a8-4bc6-8317-7c191c59f8f5","block_type":"box","text":"We are committed to transparency of the stewardship work we do on behalf of clients. 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We also publish commentaries to share","page_number":561,"box":{"x":116,"y":312,"width":755,"height":12}},{"id":"0ba0c96c-134d-4d75-9104-78066429da63","block_type":"box","text":"our approach to engagement on our five engagement priorities, as well as quarterly reports detailing","page_number":561,"box":{"x":116,"y":327,"width":748,"height":12}},{"id":"fce782a8-2a92-40ea-b721-749d9efa8e5b","block_type":"box","text":"our proxy voting and engagement activities.","page_number":561,"box":{"x":116,"y":343,"width":329,"height":12}},{"id":"c4f374b8-52f4-4f8b-a470-2f0e53bfdd0b","block_type":"box","text":"19","page_number":561,"box":{"x":144,"y":828,"width":8,"height":5}},{"id":"4e6284e5-73f3-4090-820f-58fd17802ec9","block_type":"box","text":"With Voting Choice, SMA clients have the ability to select the policy that best aligns with their views and preferences","page_number":561,"box":{"x":170,"y":828,"width":690,"height":10}},{"id":"a5898a51-d7d3-40e2-9e39-3c628ae8e9ed","block_type":"box","text":"from a set of voting policies from third-party proxy advisers. 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Under the Guidelines, the dedicated team makes decisions on how to","page_number":567,"box":{"x":184,"y":645,"width":644,"height":12}},{"id":"a0b61ec0-7ebf-4103-8db4-dfcebb480330","block_type":"box","text":"engage companies and vote proxies independently, based on its professional judgment of the","page_number":567,"box":{"x":184,"y":661,"width":694,"height":12}},{"id":"7e5f2f92-d38c-45fd-81bf-5888018b8837","block_type":"box","text":"priorities and outcomes most aligned with participating clients’ investment objectives.","page_number":567,"box":{"x":184,"y":676,"width":628,"height":12}},{"id":"9755d1a1-b467-4fdb-8e9b-b6d57e2df6a6","block_type":"box","text":"Voting approach under the Guidelines","page_number":567,"box":{"x":341,"y":713,"width":304,"height":12}},{"id":"bd572bef-86d1-43b1-a6de-f68af2f5612e","block_type":"box","text":"12","page_number":567,"box":{"x":647,"y":713,"width":11,"height":6}},{"id":"e5b147f6-4519-45db-970c-cb984c2678a7","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team","page_number":567,"box":{"x":116,"y":743,"width":752,"height":12}},{"id":"4c7ce291-59ec-461b-91f8-6c7e3bd66b0a","block_type":"box","text":"applies a case-by-case approach that reflects the uneven pace of the low-carbon transition across","page_number":567,"box":{"x":116,"y":758,"width":728,"height":12}},{"id":"163ea911-a570-4007-ae6b-2da708b57bbf","block_type":"box","text":"sectors and markets, and acknowledges the distinction between what company management can","page_number":567,"box":{"x":116,"y":774,"width":723,"height":12}},{"id":"db8790dd-14b2-4b12-a5fb-722bb6eb4d84","block_type":"box","text":"influence and what lies beyond its control. As a result, voting decisions – on behalf of in-scope funds","page_number":567,"box":{"x":117,"y":789,"width":744,"height":12}},{"id":"f20ae5d6-b50b-4d7d-8af5-0c6262ab7693","block_type":"box","text":"11","page_number":567,"box":{"x":144,"y":815,"width":7,"height":4}},{"id":"2dece45d-ea19-4855-8bf2-aefc42f58748","block_type":"box","text":"Aladdin","page_number":567,"box":{"x":170,"y":815,"width":44,"height":7}},{"id":"f9c5fc71-7885-4546-abeb-6724be816595","block_type":"box","text":"®","page_number":567,"box":{"x":215,"y":814,"width":7,"height":5}},{"id":"010433cb-b4e0-4adf-885d-3d327a9e5b58","block_type":"box","text":"Climate is a suite of climate analytics including forward-looking scenario analysis and net zero alignment","page_number":567,"box":{"x":226,"y":814,"width":620,"height":10}},{"id":"9c367a17-db35-4ecf-90af-400370b348fb","block_type":"box","text":"analytics. Aladdin","page_number":567,"box":{"x":170,"y":827,"width":103,"height":10}},{"id":"ab4c7bfd-a815-48f5-9c46-43f7c4ec743a","block_type":"box","text":"®","page_number":567,"box":{"x":274,"y":827,"width":8,"height":5}},{"id":"b05c1687-d729-416c-80b2-c35e05e83f5f","block_type":"box","text":"is a proprietary investment and risk management platform.","page_number":567,"box":{"x":286,"y":827,"width":345,"height":10}},{"id":"3205c9df-abe1-46cf-834a-71d462b9e265","block_type":"box","text":"12","page_number":567,"box":{"x":144,"y":840,"width":8,"height":5}},{"id":"bcffe7c4-2a16-427d-a3db-70d9e13aaa4f","block_type":"box","text":"These Guidelines are not intended to limit the analysis of individual issues at specific companies or provide a guide as","page_number":567,"box":{"x":170,"y":840,"width":701,"height":10}},{"id":"8ed84a63-48a9-4642-b634-4ad88e071d4f","block_type":"box","text":"to how the dedicated team will engage and/or vote in every instance. The Guidelines are applied by the dedicated team","page_number":567,"box":{"x":170,"y":853,"width":708,"height":10}},{"id":"d0684fa9-9ed1-43a7-89d1-98e769d855b9","block_type":"box","text":"with discretion, on a case-by-case basis, taking into consideration the range of issues and facts specific to the","page_number":567,"box":{"x":170,"y":866,"width":651,"height":10}},{"id":"52dc9a93-a071-4ed7-9689-75c14694fde6","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":567,"box":{"x":170,"y":879,"width":403,"height":10}},{"id":"f2d084bf-9004-43e0-989a-0934bd0fc751","block_type":"box","text":"BlackRock Investment Stewardship","page_number":567,"box":{"x":117,"y":909,"width":277,"height":12}},{"id":"19dfba12-b462-4fea-8fe1-ed6e6fef315d","block_type":"box","text":"Climate and Decarbonization St","page_number":567,"box":{"x":504,"y":909,"width":213,"height":9}},{"id":"f51c443f-6152-4ae6-97be-c622ab2b2185","block_type":"box","text":"ewardship Guidelines |","page_number":567,"box":{"x":717,"y":909,"width":152,"height":12}},{"id":"95629fa9-11e6-4d5b-b466-d8a5d95d4e7b","block_type":"box","text":"5","page_number":567,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"5362812c-a916-403b-b30e-3caed2ddb9e6","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":567,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1484f294-7158-4b2e-aa26-8c8733348203","block_type":"box","text":"and SMAs – on similar proposals included on different companies’ shareholder meeting agendas may","page_number":568,"box":{"x":116,"y":87,"width":760,"height":12}},{"id":"ab5fb996-a06f-4725-90b2-d013b1948e63","block_type":"box","text":"vary depending on company, sector, or market-specific circumstances.","page_number":568,"box":{"x":116,"y":102,"width":530,"height":13}},{"id":"1dd1217a-b13a-4ec8-b299-17f21cada21e","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines,","page_number":568,"box":{"x":117,"y":134,"width":750,"height":12}},{"id":"be7320b9-e113-453a-baaa-065a7ce17dbe","block_type":"box","text":"the dedicated team will look to the companies to demonstrate the following:","page_number":568,"box":{"x":116,"y":149,"width":564,"height":12}},{"id":"57013521-f883-43b7-8972-ffb05b38fcbd","block_type":"box","text":"Corporate Disclosures","page_number":568,"box":{"x":117,"y":180,"width":179,"height":12}},{"id":"9d756d1a-2536-4400-8716-ba460f198832","block_type":"box","text":"13","page_number":568,"box":{"x":297,"y":180,"width":11,"height":6}},{"id":"8adeefea-98f0-4209-84af-c780b3551111","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient","page_number":568,"box":{"x":117,"y":211,"width":710,"height":12}},{"id":"1ef09a97-370d-48f2-a506-c2562609a292","block_type":"box","text":"disclosure to assess whether the company’s strategy is aligned with the low-carbon transition. As a","page_number":568,"box":{"x":116,"y":227,"width":740,"height":12}},{"id":"dadd8b78-c117-43da-b76d-b7fc274e87b0","block_type":"box","text":"general point, the team looks to companies that are important to the transition to a low-carbon","page_number":568,"box":{"x":116,"y":242,"width":702,"height":12}},{"id":"b371204a-3021-43d1-8e94-3451caea6755","block_type":"box","text":"economy to explain the strategy and governance frameworks that they have determined most","page_number":568,"box":{"x":116,"y":258,"width":700,"height":12}},{"id":"5781b87c-5ed1-40dc-b02a-72c35f69feff","block_type":"box","text":"appropriate, which may include:","page_number":568,"box":{"x":116,"y":273,"width":241,"height":12}},{"id":"593a4696-7f66-422a-80a7-6e4dc402c81c","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit","page_number":568,"box":{"x":150,"y":304,"width":688,"height":12}},{"id":"cd25d92b-1a6d-458a-a86a-578571270ba0","block_type":"box","text":"average global temperature rise to 1.5°C above pre-industrial levels. This would typically","page_number":568,"box":{"x":184,"y":320,"width":661,"height":12}},{"id":"bc3f9fd2-36f1-4936-87a7-3025d767a5ae","block_type":"box","text":"include a long-term strategy to achieve net-zero GHG emissions by 2050, with appropriate","page_number":568,"box":{"x":184,"y":335,"width":676,"height":12}},{"id":"cbe5645c-9a3a-45be-8617-7c456930ffd8","block_type":"box","text":"near- and medium-term milestones to assess their progress.","page_number":568,"box":{"x":184,"y":351,"width":453,"height":12}},{"id":"c1f7cab1-8e1c-4f24-b663-6b7f0b0a2bb3","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data","page_number":568,"box":{"x":150,"y":374,"width":724,"height":12}},{"id":"4aa9d05b-e32e-4112-8e6c-2f773dc79bbb","block_type":"box","text":"supports investors in making informed decisions. The International Sustainability Standards","page_number":568,"box":{"x":184,"y":389,"width":683,"height":12}},{"id":"71944fed-2e47-4d5c-9237-829c7c7a668b","block_type":"box","text":"Board (ISSB) standards, IFRS S1 and S2, represent one such approach to standardization","page_number":568,"box":{"x":184,"y":405,"width":678,"height":12}},{"id":"c9edef71-3de6-4e3d-880b-df0080a4b4ce","block_type":"box","text":"that the dedicated team finds useful in its analysis.","page_number":568,"box":{"x":183,"y":420,"width":374,"height":12}},{"id":"c82bfe9a-9344-4c3d-82b1-fbc1c65f60df","block_type":"box","text":"14","page_number":568,"box":{"x":559,"y":420,"width":11,"height":7}},{"id":"e4bc0e0c-5605-46c3-a154-160cccad034e","block_type":"box","text":",","page_number":568,"box":{"x":572,"y":428,"width":8,"height":4}},{"id":"ea54f174-16fb-4efb-996d-2cf5b38002a1","block_type":"box","text":"15","page_number":568,"box":{"x":581,"y":420,"width":11,"height":7}},{"id":"078d6331-64b8-4ebf-867f-502b3104225a","block_type":"box","text":"IFRS S1 addresses the general","page_number":568,"box":{"x":592,"y":420,"width":244,"height":12}},{"id":"3454c3ef-6975-41ee-959b-f39cd374e634","block_type":"box","text":"requirements of sustainability reporting and IFRS S2 sets out the disclosures that provide","page_number":568,"box":{"x":184,"y":436,"width":667,"height":12}},{"id":"f47006f4-8b95-46a8-8c64-f3373e9e8a67","block_type":"box","text":"investors with decision-useful information about a company’s most significant climate- and","page_number":568,"box":{"x":184,"y":451,"width":674,"height":12}},{"id":"d134c1b8-32f9-40f4-82ba-42c323d2db37","block_type":"box","text":"low-carbon transition-related risks and opportunities. This includes receiving independent,","page_number":568,"box":{"x":184,"y":467,"width":671,"height":12}},{"id":"7589023d-1cfb-4172-befc-c5520a13c6ad","block_type":"box","text":"third-party assurances, as audit and assurance standards are developed.","page_number":568,"box":{"x":183,"y":482,"width":549,"height":12}},{"id":"67a4f015-261b-4686-aa23-52ebd10943f5","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions.","page_number":568,"box":{"x":150,"y":506,"width":536,"height":12}},{"id":"3f9b3cf8-f358-4590-86d0-4714a6c17750","block_type":"box","text":"16","page_number":568,"box":{"x":689,"y":506,"width":10,"height":6}},{"id":"ff8f16f5-f946-4983-a858-7a8dd4f05235","block_type":"box","text":",","page_number":568,"box":{"x":701,"y":514,"width":8,"height":3}},{"id":"f4c304df-4cbe-4771-a550-624b6b4b229b","block_type":"box","text":"17","page_number":568,"box":{"x":710,"y":506,"width":11,"height":6}},{"id":"d7b864f6-a091-4de4-ac9c-85173b6a59b7","block_type":"box","text":"In addition, the","page_number":568,"box":{"x":721,"y":506,"width":120,"height":11}},{"id":"94cff10c-7ac4-4d2d-95c0-e4d482a62d73","block_type":"box","text":"dedicated team looks to companies to disclose their emissions reduction targets for scope 1","page_number":568,"box":{"x":184,"y":521,"width":687,"height":12}},{"id":"fdcdb12a-0b73-43a6-99e0-87a30abc1511","block_type":"box","text":"and 2 emissions, science-based where possible. The team welcomes disclosure of targets or","page_number":568,"box":{"x":184,"y":537,"width":695,"height":12}},{"id":"a69df82b-846e-4ad4-ad24-1b57ad9712b2","block_type":"box","text":"indicative goals, where companies have set them, for scope 3 emissions reductions. Scope 3","page_number":568,"box":{"x":184,"y":552,"width":696,"height":12}},{"id":"e3e0e81d-57b3-4627-b8ca-873357461af3","block_type":"box","text":"13","page_number":568,"box":{"x":144,"y":583,"width":8,"height":4}},{"id":"63fe5686-3675-4921-9f81-38ce04e6ca34","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where reporting","page_number":568,"box":{"x":170,"y":582,"width":695,"height":10}},{"id":"d39e114e-ecc1-45f0-8bf7-58bc9c0b14c5","block_type":"box","text":"methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their business","page_number":568,"box":{"x":170,"y":595,"width":686,"height":10}},{"id":"9e3e67c1-fcd9-43ee-b9cb-ddad128b69f9","block_type":"box","text":"models through the low-carbon transition may require forward-looking statements.","page_number":568,"box":{"x":170,"y":608,"width":485,"height":10}},{"id":"e831a6b4-7bfb-4bba-b2e2-0f245f4f59d6","block_type":"box","text":"14","page_number":568,"box":{"x":144,"y":621,"width":8,"height":5}},{"id":"e74f79a8-86c3-4fca-805e-ca96681086af","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards (IFRS)","page_number":568,"box":{"x":170,"y":621,"width":666,"height":10}},{"id":"f945d9d2-8db2-49b6-af9a-7b473e46c03c","block_type":"box","text":"Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework and the","page_number":568,"box":{"x":171,"y":634,"width":712,"height":10}},{"id":"6d4c9f33-2848-4d33-bb98-4e875bf7dfae","block_type":"box","text":"standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":568,"box":{"x":170,"y":647,"width":649,"height":10}},{"id":"16c6ed19-c000-475a-bfb2-f1b821833d66","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":568,"box":{"x":170,"y":660,"width":674,"height":10}},{"id":"0d5faf7b-149c-41e0-9e81-9ffe1237c23a","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":568,"box":{"x":170,"y":673,"width":647,"height":10}},{"id":"185742ea-1cdd-42a1-b6b8-e71f9449ef23","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":568,"box":{"x":171,"y":686,"width":312,"height":7}},{"id":"40a688b9-2663-4580-bc9e-df9daa8c1097","block_type":"box","text":"15","page_number":568,"box":{"x":144,"y":699,"width":8,"height":5}},{"id":"b237dbea-8e4a-4efa-b567-9fdc345b9096","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to doing","page_number":568,"box":{"x":170,"y":699,"width":694,"height":9}},{"id":"72e7dd56-b235-4316-aecb-2cb34a3d5618","block_type":"box","text":"so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":568,"box":{"x":170,"y":712,"width":651,"height":9}},{"id":"ca659a92-b1f8-4e5d-890f-73bb8a6f78f9","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we ask","page_number":568,"box":{"x":170,"y":725,"width":698,"height":9}},{"id":"00a28cd6-434a-40eb-95b9-3eb2c14d1503","block_type":"box","text":"that companies highlight the metrics that are industry- or company-specific. We also recognize that companies may be","page_number":568,"box":{"x":170,"y":737,"width":703,"height":10}},{"id":"96711cf5-9a51-49e5-9d6b-8d5468801723","block_type":"box","text":"phasing in reporting over several years. We do not prescribe timelines regarding when companies should make","page_number":568,"box":{"x":170,"y":750,"width":661,"height":10}},{"id":"7eccffd6-a81e-4beb-87cf-88caa6e60ad0","block_type":"box","text":"sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of their","page_number":568,"box":{"x":170,"y":763,"width":664,"height":10}},{"id":"7ec680d4-8d5e-4b77-98e9-7788dd0c0fb6","block_type":"box","text":"shareholder meeting, to the best of their abilities, to provide investors with time to assess the data and make informed","page_number":568,"box":{"x":170,"y":776,"width":698,"height":10}},{"id":"a3c7cdb1-0970-48e2-8f65-24b0a0b1632c","block_type":"box","text":"voting decisions.","page_number":568,"box":{"x":170,"y":789,"width":98,"height":10}},{"id":"59fe0fa7-a050-43dc-89ce-4c6221c12c22","block_type":"box","text":"16","page_number":568,"box":{"x":144,"y":802,"width":8,"height":5}},{"id":"62610616-889c-45c3-8229-da20fe03df0c","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":568,"box":{"x":171,"y":802,"width":685,"height":10}},{"id":"d60f0762-8c8d-4023-b7a3-314610f9d8ae","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in December","page_number":568,"box":{"x":170,"y":815,"width":708,"height":10}},{"id":"ca6b2ae7-8634-4ad7-a934-8ac5ca791f28","block_type":"box","text":"2025.","page_number":568,"box":{"x":170,"y":828,"width":32,"height":8}},{"id":"08734330-5ee1-4acc-94e9-e0f8449f66fb","block_type":"box","text":"17","page_number":568,"box":{"x":144,"y":841,"width":8,"height":5}},{"id":"82ccab0b-6c1f-4ac0-bd58-141fc2472e58","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":568,"box":{"x":171,"y":841,"width":680,"height":9}},{"id":"969f9738-5a0e-4e85-a4e1-ad2d512d3302","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":568,"box":{"x":171,"y":854,"width":706,"height":9}},{"id":"844c312e-2e1c-42bb-81c6-d2a877580a7c","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":568,"box":{"x":170,"y":867,"width":677,"height":9}},{"id":"f3dce403-add6-43d0-b954-14cef7abb40c","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":568,"box":{"x":170,"y":880,"width":650,"height":9}},{"id":"551eba39-a3d6-4221-b651-d9b4c8c22a72","block_type":"box","text":"BlackRock Investment Stewardship","page_number":568,"box":{"x":117,"y":909,"width":277,"height":12}},{"id":"f37b6f37-00ad-496a-86f3-5b64982caac5","block_type":"box","text":"Climate and Decarbonization St","page_number":568,"box":{"x":504,"y":909,"width":213,"height":9}},{"id":"ed2404bd-e9f2-432d-9e54-86ad487bfba6","block_type":"box","text":"ewardship Guidelines |","page_number":568,"box":{"x":717,"y":909,"width":152,"height":12}},{"id":"be7a4cae-2abb-4786-be5d-1ef1c34c9bf1","block_type":"box","text":"6","page_number":568,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"63542456-cba7-40fa-babf-23d687537782","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":568,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d0963591-11f0-4fb3-833e-7fb4cb0bf4e6","block_type":"box","text":"information, including how a company is working with its value chain to accelerate reductions","page_number":569,"box":{"x":184,"y":87,"width":694,"height":12}},{"id":"7acf8bbd-49ef-4000-b3eb-b74f6d09286f","block_type":"box","text":"in GHG intensity, provides useful insight to investors focused on investing in the low-carbon","page_number":569,"box":{"x":184,"y":102,"width":684,"height":13}},{"id":"f1031e01-1de1-4119-be4c-588676d68b26","block_type":"box","text":"transition and understanding the impact of their investments on their decarbonization goals.","page_number":569,"box":{"x":183,"y":118,"width":678,"height":12}},{"id":"42f36a44-1a68-48a5-b46e-f22c82a38327","block_type":"box","text":"18","page_number":569,"box":{"x":864,"y":118,"width":10,"height":6}},{"id":"fab24495-73e4-47b8-adb6-64795d4c548d","block_type":"box","text":"However, the team recognizes that companies have varying ability to influence the emissions","page_number":569,"box":{"x":184,"y":134,"width":696,"height":12}},{"id":"3f4dd1ed-b013-44f7-b88f-956ffae6191a","block_type":"box","text":"across the different parts of their value chain and, therefore, it is helpful when disclosures","page_number":569,"box":{"x":184,"y":149,"width":667,"height":12}},{"id":"61821f21-4fda-4356-bf9a-92bc9f7c3ae6","block_type":"box","text":"explain the implications for the achievement of their decarbonization targets. For some","page_number":569,"box":{"x":184,"y":165,"width":647,"height":12}},{"id":"31f42724-6247-4403-85ff-5e560d740e24","block_type":"box","text":"companies that play an important role in the low-carbon transition, scope 3 may represent","page_number":569,"box":{"x":184,"y":180,"width":671,"height":12}},{"id":"0111be78-3d0f-426b-ac1d-966ef2cd43f7","block_type":"box","text":"their only significant source of GHG emissions in the value chain. While we do not believe","page_number":569,"box":{"x":183,"y":196,"width":672,"height":12}},{"id":"a4af9a2d-582d-439c-bf47-28e440aa89bd","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control,","page_number":569,"box":{"x":184,"y":211,"width":693,"height":12}},{"id":"66c42dfe-2d2d-41b8-8ec7-e7143bef9575","block_type":"box","text":"where relevant, we look for disclosures on how the company approaches the low-carbon","page_number":569,"box":{"x":183,"y":227,"width":662,"height":12}},{"id":"0685880f-bddd-4461-9b2c-0a9554d56670","block_type":"box","text":"transition in these cases. This may include plans and targets to grow businesses that","page_number":569,"box":{"x":183,"y":242,"width":636,"height":12}},{"id":"b7a9c1b7-5f89-4ece-a3fe-9762333001ab","block_type":"box","text":"contribute to real world decarbonization, forward-looking capital or procurement allocation","page_number":569,"box":{"x":184,"y":258,"width":670,"height":12}},{"id":"85289713-5d1c-4332-ab43-e23f33d60221","block_type":"box","text":"plans to net-zero aligned activities or suppliers, and strategies to mitigate material transition","page_number":569,"box":{"x":184,"y":273,"width":684,"height":12}},{"id":"aa49ea78-5512-4301-9cae-a284bfb88a9a","block_type":"box","text":"risks.","page_number":569,"box":{"x":184,"y":289,"width":43,"height":9}},{"id":"02981f56-a247-4537-9ee2-552c62dc2f6b","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical","page_number":569,"box":{"x":150,"y":312,"width":729,"height":12}},{"id":"90f00461-7386-4000-85cb-b2d22200d574","block_type":"box","text":"risks – such as acute risks from extreme weather events or chronic risks from long-term shifts","page_number":569,"box":{"x":184,"y":327,"width":699,"height":12}},{"id":"ff115fa1-9a58-4f1b-9274-fa3fc1d12707","block_type":"box","text":"in climate patterns – and how these risks could reasonably be expected to affect the","page_number":569,"box":{"x":184,"y":343,"width":629,"height":12}},{"id":"e04b66e9-b478-48c6-aa5f-217115eb9a88","block_type":"box","text":"company’s operations, assets, or supply chains.","page_number":569,"box":{"x":184,"y":358,"width":361,"height":12}},{"id":"d6cc4e52-9add-4db5-84cd-c4a5a2d63621","block_type":"box","text":"Transition plans","page_number":569,"box":{"x":150,"y":389,"width":134,"height":12}},{"id":"2e963638-684d-438e-b5e0-9006e8ee2139","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their","page_number":569,"box":{"x":150,"y":420,"width":698,"height":12}},{"id":"0ace14a8-3f15-45de-b108-4eb0997f7f30","block_type":"box","text":"low-carbon transition strategies. As defined by the ISSB, a transition plan “lays out the entity’s","page_number":569,"box":{"x":150,"y":436,"width":701,"height":12}},{"id":"d51533ff-6c29-4765-87f8-f8044a16d647","block_type":"box","text":"targets, actions or resources for its transition towards a lower-carbon economy, including actions","page_number":569,"box":{"x":150,"y":451,"width":722,"height":12}},{"id":"2458a251-0dff-44ea-8273-56d8194d77b5","block_type":"box","text":"such as reducing its greenhouse gas emissions” (see Appendix 1).","page_number":569,"box":{"x":150,"y":467,"width":494,"height":12}},{"id":"6058fd50-7aa8-4432-b02c-2e68d12a06bb","block_type":"box","text":"19","page_number":569,"box":{"x":646,"y":467,"width":11,"height":6}},{"id":"cc769ea6-84c5-41e6-9573-22e45e0a3a5f","block_type":"box","text":"Work is also underway in a number of jurisdictions on establishing a common approach in a","page_number":569,"box":{"x":150,"y":490,"width":685,"height":12}},{"id":"22355181-643f-4cd9-af56-76ee5cbe243a","block_type":"box","text":"market to corporate transition plans.","page_number":569,"box":{"x":150,"y":506,"width":267,"height":12}},{"id":"0f782f3c-dc91-492b-86fb-5f8ce50876a4","block_type":"box","text":"20","page_number":569,"box":{"x":418,"y":506,"width":12,"height":6}},{"id":"0cb129df-b188-43af-99ac-101480232a4a","block_type":"box","text":"Recent guidance from the ISSB on disclosures about","page_number":569,"box":{"x":430,"y":506,"width":404,"height":12}},{"id":"bf8a94aa-45fa-421e-8ae9-887020a54693","block_type":"box","text":"transition plans highlights the convergence of reporting approaches.","page_number":569,"box":{"x":150,"y":521,"width":509,"height":12}},{"id":"c0bf9cc0-51fd-452b-befb-78fb7fa3936d","block_type":"box","text":"While the preparation of a transition plan, or lack thereof, is not, in itself, a voting issue, these","page_number":569,"box":{"x":150,"y":544,"width":697,"height":12}},{"id":"721040d1-7b06-4f27-bc6c-c08e5c73a989","block_type":"box","text":"disclosures typically provide valuable insights that inform the dedicated team’s approach to","page_number":569,"box":{"x":150,"y":560,"width":679,"height":12}},{"id":"abae62d4-565d-44a3-8c28-ce172294ac36","block_type":"box","text":"engaging and voting on matters related to climate and transition risks on behalf of in-scope funds","page_number":569,"box":{"x":150,"y":575,"width":725,"height":12}},{"id":"89ba1473-4106-4b7a-98cd-ee2a2923225e","block_type":"box","text":"and accounts.","page_number":569,"box":{"x":150,"y":591,"width":109,"height":9}},{"id":"78815105-5d36-4e75-8bde-e7e68d575a87","block_type":"box","text":"18","page_number":569,"box":{"x":144,"y":725,"width":8,"height":5}},{"id":"45feaaec-fcec-4e32-ac54-5204ddcb4cdd","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly traded","page_number":569,"box":{"x":170,"y":725,"width":707,"height":9}},{"id":"55e01686-d98f-4b57-94e0-5c2c7ebdc386","block_type":"box","text":"companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":569,"box":{"x":170,"y":737,"width":645,"height":10}},{"id":"38f5fda9-23bb-4eee-906b-b006ab6574a2","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":569,"box":{"x":170,"y":750,"width":686,"height":10}},{"id":"acbc388e-f79a-4663-8883-70aa1a5e5241","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":569,"box":{"x":170,"y":763,"width":663,"height":10}},{"id":"973d6b54-734a-42ce-b49f-8e06e1a025c2","block_type":"box","text":"material to their business models.","page_number":569,"box":{"x":170,"y":776,"width":199,"height":8}},{"id":"64e79889-770c-466a-84db-63daebddb8e0","block_type":"box","text":"19","page_number":569,"box":{"x":144,"y":789,"width":8,"height":5}},{"id":"aebc4780-6d78-441a-bed8-7df37a1f2eca","block_type":"box","text":"International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in December","page_number":569,"box":{"x":171,"y":789,"width":712,"height":10}},{"id":"8720ce31-8b68-4676-96fd-7f1e0713d0b2","block_type":"box","text":"2025.","page_number":569,"box":{"x":170,"y":802,"width":32,"height":8}},{"id":"f014ecad-7688-41b5-bd7d-969573d73f34","block_type":"box","text":"20","page_number":569,"box":{"x":143,"y":815,"width":9,"height":5}},{"id":"9c0cd8d7-8228-4d90-b9cb-fa092fdb755a","block_type":"box","text":"More companies are developing such plans, and public policymakers in certain markets are signaling their intentions to","page_number":569,"box":{"x":171,"y":815,"width":705,"height":10}},{"id":"85c2c5cb-a2fd-4d6a-8405-3762718cea9c","block_type":"box","text":"require them or already have requirements in place, such as Australia, Brazil, and the European Union (please see the","page_number":569,"box":{"x":170,"y":828,"width":704,"height":10}},{"id":"fb1387f7-a93c-439f-9383-d8e1ffeff557","block_type":"box","text":"International Transition Plan Network for information). BlackRock views transition plans as a method for a company to","page_number":569,"box":{"x":171,"y":841,"width":697,"height":9}},{"id":"1ef2dac0-539c-42b2-9cbc-677aac8fda85","block_type":"box","text":"both internally assess and externally communicate its long-term strategy, ambition, objectives, and actions to create","page_number":569,"box":{"x":170,"y":854,"width":687,"height":9}},{"id":"256d776e-dd88-43b4-989d-fcfe20a9afd0","block_type":"box","text":"financial value through the global transition towards a low-carbon economy. Across the landscape there remains","page_number":569,"box":{"x":170,"y":867,"width":666,"height":9}},{"id":"a0a801e1-ffb8-4e71-b1b7-96b66bf04627","block_type":"box","text":"divergence on the objectives of such plans and the details they should contain. Website accessed in December 2025.","page_number":569,"box":{"x":170,"y":880,"width":697,"height":9}},{"id":"8d680372-102a-4bff-b54e-1b3fc2f17401","block_type":"box","text":"BlackRock Investment Stewardship","page_number":569,"box":{"x":117,"y":909,"width":277,"height":12}},{"id":"6ab9302a-711c-4c3f-9065-c0363852b85d","block_type":"box","text":"Climate and Decarbonization St","page_number":569,"box":{"x":504,"y":909,"width":213,"height":9}},{"id":"550632d9-0043-421b-9589-20c9d7df9727","block_type":"box","text":"ewardship Guidelines |","page_number":569,"box":{"x":717,"y":909,"width":152,"height":12}},{"id":"e5100c34-6281-46d5-acbe-472fc4922717","block_type":"box","text":"7","page_number":569,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"dfad34f3-05be-4067-a7ea-a146310c5927","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":569,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"87909839-e73e-408e-893e-dd0f881ef15a","block_type":"box","text":"Boards and directors","page_number":570,"box":{"x":116,"y":87,"width":174,"height":10}},{"id":"ed1bb68f-b6d5-478f-9fb4-8c92506d8d91","block_type":"box","text":"An effective and well-functioning board that has appropriate governance structures to facilitate","page_number":570,"box":{"x":116,"y":110,"width":704,"height":12}},{"id":"24781a24-d3c8-430d-bf29-cfde7acbcf28","block_type":"box","text":"oversight of a company’s management and strategic initiatives is critical to the company’s ability to","page_number":570,"box":{"x":116,"y":126,"width":736,"height":12}},{"id":"4a49bf9a-54fb-4297-8678-ea68cdda5997","block_type":"box","text":"deliver on its low-carbon transition strategy. In assessing the role and effectiveness of the board in this","page_number":570,"box":{"x":116,"y":141,"width":766,"height":12}},{"id":"3bd5ef27-d33c-4865-953f-e37a470248b4","block_type":"box","text":"regard, the dedicated team seeks to understand whether:","page_number":570,"box":{"x":117,"y":157,"width":430,"height":12}},{"id":"7b24e094-9e2c-4685-9319-934c8a8ccaaf","block_type":"box","text":"• The board has clear oversight responsibilities for climate and low-carbon transition-related","page_number":570,"box":{"x":150,"y":188,"width":707,"height":12}},{"id":"095d38eb-2c01-4ab2-8a29-7ac4fc04daa3","block_type":"box","text":"risks and opportunities in the company’s business model. The Guidelines consider the whole","page_number":570,"box":{"x":184,"y":203,"width":692,"height":12}},{"id":"ec3279d8-7efd-46a9-8ab5-fad9b4fc91cd","block_type":"box","text":"board to have responsibility for oversight of the company’s long-term strategy, including those","page_number":570,"box":{"x":184,"y":219,"width":700,"height":12}},{"id":"23f0ead1-57a2-47f3-8245-49a25ab25d38","block_type":"box","text":"aspects related to the transition to a low-carbon economy.","page_number":570,"box":{"x":184,"y":234,"width":435,"height":12}},{"id":"3931b8d0-83c1-4bc2-b49a-4cc62723a840","block_type":"box","text":"• Management has established a robust low-carbon transition framework and long-term","page_number":570,"box":{"x":150,"y":258,"width":675,"height":12}},{"id":"326bb4bc-64d2-4fc0-a26f-2f5cbfe8a8f0","block_type":"box","text":"strategy, with clear accountability for delivery by senior executives.","page_number":570,"box":{"x":184,"y":273,"width":500,"height":12}},{"id":"2291b369-f7ec-411f-b430-2d15b6c30c90","block_type":"box","text":"• The capital management strategy explains how the company allocates investments to","page_number":570,"box":{"x":150,"y":296,"width":675,"height":12}},{"id":"f382c739-9389-42ad-b11f-4768858eb177","block_type":"box","text":"(traditional and next generation) business lines and innovation, and returns cash to","page_number":570,"box":{"x":184,"y":312,"width":619,"height":12}},{"id":"3b797c29-5be2-48b3-82df-bcc205389ec7","block_type":"box","text":"shareholders, consistent with the company’s stated low-carbon transition strategy.","page_number":570,"box":{"x":184,"y":327,"width":614,"height":12}},{"id":"f101404a-446c-49ae-9640-cd19b1604758","block_type":"box","text":"• The climate and low-carbon transition risks most likely to significantly impact the business are","page_number":570,"box":{"x":150,"y":351,"width":733,"height":12}},{"id":"746e0ea8-54a7-4715-85e7-f8253a899ba5","block_type":"box","text":"integrated into the company’s enterprise risk management processes and reporting.","page_number":570,"box":{"x":184,"y":366,"width":627,"height":12}},{"id":"a5aa56da-f7a4-492f-be01-1cce4a2125d4","block_type":"box","text":"• The company has set scope 1 and 2 GHG emissions reduction targets, science-based and","page_number":570,"box":{"x":150,"y":389,"width":712,"height":12}},{"id":"90065345-caea-4b24-bb3d-321ecba19b79","block_type":"box","text":"independently verified where possible, against a baseline, that are consistent with the","page_number":570,"box":{"x":184,"y":405,"width":639,"height":12}},{"id":"92bde011-8b87-4850-9a97-b847b5b7c9fd","block_type":"box","text":"ambition to limit average global temperature rise to no more than 1.5°C above pre-industrial","page_number":570,"box":{"x":184,"y":420,"width":685,"height":12}},{"id":"c8e16df0-5124-4198-aa79-b6c6215d3e5e","block_type":"box","text":"levels.","page_number":570,"box":{"x":184,"y":436,"width":51,"height":9}},{"id":"c4632909-2539-42e0-a31a-13998a562d2c","block_type":"box","text":"• There is a clear link between the company’s scope 1 and 2 GHG emissions reduction targets","page_number":570,"box":{"x":150,"y":459,"width":728,"height":12}},{"id":"f296f176-d784-4643-b08c-fe956ed6b70d","block_type":"box","text":"over time and its long-term low-carbon transition strategy.","page_number":570,"box":{"x":184,"y":475,"width":432,"height":12}},{"id":"29361ad8-c856-4018-bcab-76baf8fa062a","block_type":"box","text":"• The company is monitoring its most significant scope 3 emissions and disclosing these where","page_number":570,"box":{"x":150,"y":498,"width":733,"height":12}},{"id":"5d214489-425c-430f-a2ce-72cd8d90eb51","block_type":"box","text":"it is confident in the data. Given forthcoming regulatory requirements in certain jurisdictions,","page_number":570,"box":{"x":184,"y":513,"width":684,"height":12}},{"id":"e4372e6a-546f-4100-bff1-fd7377a0b829","block_type":"box","text":"some companies are voluntarily disclosing scope 3 emissions reductions targets and plans,","page_number":570,"box":{"x":184,"y":529,"width":683,"height":12}},{"id":"f9efa40b-3833-4d51-9b99-2a11d3209f3f","block_type":"box","text":"setting out how they are working on decarbonization with the different constituents in their","page_number":570,"box":{"x":184,"y":544,"width":670,"height":12}},{"id":"66695447-6f8f-4063-ac80-591e6d133b01","block_type":"box","text":"value chain.","page_number":570,"box":{"x":183,"y":560,"width":94,"height":9}},{"id":"d3a99143-57a8-4dbe-9e84-dc0fa14eae44","block_type":"box","text":"21","page_number":570,"box":{"x":278,"y":560,"width":10,"height":6}},{"id":"e79aafbc-9e81-4214-b1b8-8e594e4d9abc","block_type":"box","text":"• The company’s governance and oversight processes for managing material risks associated","page_number":570,"box":{"x":150,"y":583,"width":723,"height":12}},{"id":"8b7c6515-b5f2-4667-84cc-68120e0ad7d7","block_type":"box","text":"with corporate political activities including applicable policies and procedures where","page_number":570,"box":{"x":183,"y":599,"width":624,"height":12}},{"id":"09e004f1-246f-4709-a87c-6b45426f4329","block_type":"box","text":"relevant.","page_number":570,"box":{"x":184,"y":614,"width":62,"height":10}},{"id":"0051b791-7e91-4636-b4e3-b8ddf63a22fe","block_type":"box","text":"22","page_number":570,"box":{"x":248,"y":614,"width":11,"height":6}},{"id":"d76d7237-d886-4840-ab8e-bcfff1f64e0a","block_type":"box","text":"The dedicated team looks for public policy engagement to be consistent with a","page_number":570,"box":{"x":260,"y":614,"width":592,"height":12}},{"id":"9886eeb9-737b-4b39-9e17-8585746521d8","block_type":"box","text":"company’s stated strategic policy objectives, including those related to the low-carbon","page_number":570,"box":{"x":184,"y":630,"width":642,"height":12}},{"id":"7578c0f8-be81-4bf8-9a47-35e97982d16e","block_type":"box","text":"transition.","page_number":570,"box":{"x":183,"y":645,"width":78,"height":10}},{"id":"3ee415cd-bd3b-46a3-b723-06f7f1f59d0d","block_type":"box","text":"21","page_number":570,"box":{"x":143,"y":789,"width":8,"height":5}},{"id":"35721621-1ca6-47a4-a68e-aab287cdead1","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":570,"box":{"x":171,"y":789,"width":685,"height":10}},{"id":"ba12814f-7494-4860-9181-cf44c8658927","block_type":"box","text":"paper “Scope for improvement: Solving the Scope 3 conundrum.” Their research indicates that there are 2-3 material","page_number":570,"box":{"x":170,"y":802,"width":692,"height":10}},{"id":"4370125b-b5bc-4ea4-99b2-c8938a571687","block_type":"box","text":"scope 3 GHG emissions categories by sector. The research uses a definition of materiality from the GHG Protocol,","page_number":570,"box":{"x":170,"y":815,"width":679,"height":10}},{"id":"f8b71d70-68bb-4f97-97fb-7c790b199785","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, [that]","page_number":570,"box":{"x":170,"y":828,"width":682,"height":10}},{"id":"33b91a27-2c3e-41e8-97a5-14109cd80bc5","block_type":"box","text":"offer the most significant GHG reduction opportunities and are most relevant to the company’s business goals.” Website","page_number":570,"box":{"x":170,"y":841,"width":712,"height":9}},{"id":"9e17d977-7de3-4f4b-8021-75769e325446","block_type":"box","text":"accessed in December 2025.","page_number":570,"box":{"x":170,"y":854,"width":173,"height":7}},{"id":"76659352-2e8a-4e69-90d6-64670a75b051","block_type":"box","text":"22","page_number":570,"box":{"x":143,"y":867,"width":9,"height":5}},{"id":"a11c7e71-6d0c-4067-9e56-a2e5cd8b8e6b","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including trade","page_number":570,"box":{"x":170,"y":867,"width":694,"height":9}},{"id":"3300b767-4533-4c97-a460-2d5104ef29ae","block_type":"box","text":"association memberships), and corporate political contributions.","page_number":570,"box":{"x":170,"y":880,"width":378,"height":9}},{"id":"4b41d209-7208-4050-ab24-55e638018b46","block_type":"box","text":"BlackRock Investment Stewardship","page_number":570,"box":{"x":117,"y":909,"width":277,"height":12}},{"id":"076c482a-c75c-4698-8180-7adadb4a63e9","block_type":"box","text":"Climate and Decarbonization St","page_number":570,"box":{"x":504,"y":909,"width":213,"height":9}},{"id":"77741c7a-e3cf-4aea-9a23-749be4ebf50e","block_type":"box","text":"ewardship Guidelines |","page_number":570,"box":{"x":717,"y":909,"width":152,"height":12}},{"id":"86ca5f58-ec37-4ca9-9630-7f23dea649a4","block_type":"box","text":"8","page_number":570,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"dd19532e-492b-4c66-96b3-0ddb5acb11c8","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":570,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"35f5b810-8160-4a89-8582-49e716d86963","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":571,"box":{"x":118,"y":87,"width":424,"height":12}},{"id":"66e6b1c7-f0ef-4511-b58d-1f0e0b3421a2","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally supports non-executive directors","page_number":571,"box":{"x":117,"y":118,"width":726,"height":12}},{"id":"cd3fe0d0-ada2-439b-a423-fcf796532eed","block_type":"box","text":"standing for election where, in its assessment based on company disclosures and engagement, a","page_number":571,"box":{"x":116,"y":134,"width":729,"height":12}},{"id":"b5064d49-db6e-4b97-b4a1-0c0167a6cac0","block_type":"box","text":"company is executing on its commitment to align with the transition to a low-carbon economy, as","page_number":571,"box":{"x":116,"y":149,"width":722,"height":12}},{"id":"1931e733-97d1-47b1-9d27-00c2297dadf4","block_type":"box","text":"defined above. Where the dedicated team determines this is not the case, it may vote against the","page_number":571,"box":{"x":116,"y":165,"width":727,"height":12}},{"id":"4748b5a3-eca1-4e42-ad42-a9f40603a2b9","block_type":"box","text":"election of one or more directors who the team identifies as having the most responsibility for the issue.","page_number":571,"box":{"x":116,"y":180,"width":772,"height":12}},{"id":"df79aec1-e64b-4bc8-924f-71e9713ae71e","block_type":"box","text":"The directors most likely to be in focus are the chair of the board committee with low-carbon transition,","page_number":571,"box":{"x":116,"y":196,"width":765,"height":12}},{"id":"5bcfe0f2-a0c8-44ba-9333-9fb2b787e546","block_type":"box","text":"climate or sustainability risk oversight responsibilities, other members of the relevant committee, the","page_number":571,"box":{"x":116,"y":211,"width":746,"height":12}},{"id":"a5f860ee-54ad-4837-804e-81e686bc9358","block_type":"box","text":"lead independent director or the non-executive chair of the board. In certain markets, the team may","page_number":571,"box":{"x":117,"y":227,"width":741,"height":12}},{"id":"6ff33186-7941-415c-af48-5323c7b0cf83","block_type":"box","text":"withhold support for the discharge of the supervisory board or equivalent and/or board reports.","page_number":571,"box":{"x":116,"y":242,"width":699,"height":12}},{"id":"a5e5644e-f183-4b2b-b3b7-eca6958e1d10","block_type":"box","text":"23","page_number":571,"box":{"x":817,"y":242,"width":11,"height":6}},{"id":"967324e0-0376-4898-a2d4-2e843403c8ed","block_type":"box","text":"Where the dedicated team has not supported director elections over climate concerns in a prior year,","page_number":571,"box":{"x":116,"y":273,"width":754,"height":12}},{"id":"501293ce-5851-46e1-8cbe-202e90e49709","block_type":"box","text":"and the company has not subsequently made progress towards aligning with the transition to a","page_number":571,"box":{"x":116,"y":289,"width":709,"height":12}},{"id":"93efaea7-0a56-4bbc-b8a2-5deb87c94743","block_type":"box","text":"low-carbon economy, the team may escalate by not supporting the re-election of additional responsible","page_number":571,"box":{"x":117,"y":304,"width":769,"height":12}},{"id":"0f0082d1-e487-47f2-8611-d7ec64afaaf1","block_type":"box","text":"directors.","page_number":571,"box":{"x":116,"y":320,"width":67,"height":9}},{"id":"ed3b98c0-6c5e-432c-8924-0820df375582","block_type":"box","text":"24","page_number":571,"box":{"x":185,"y":320,"width":12,"height":6}},{"id":"121ed1f2-477c-454f-8c59-154b0eac2e4d","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":571,"box":{"x":116,"y":351,"width":582,"height":12}},{"id":"aeab6a93-e070-4342-87f0-644ccc5ee048","block_type":"box","text":"In certain markets, company management may submit proposals – commonly referred to as “Say on","page_number":571,"box":{"x":117,"y":382,"width":750,"height":12}},{"id":"50df3a73-4e1f-4b3e-b080-e9c4a686a4f0","block_type":"box","text":"Climate” – seeking shareholder approval of their climate action plans or progress reports. The","page_number":571,"box":{"x":117,"y":397,"width":700,"height":12}},{"id":"be9e5b1c-151e-42cc-9c79-4a2de14e3609","block_type":"box","text":"Guidelines consider these proposals as a valuable governance mechanism that can enhance","page_number":571,"box":{"x":117,"y":413,"width":696,"height":12}},{"id":"7a632468-68ab-49e4-bb27-a3e5d9e86d50","block_type":"box","text":"transparency, accountability, and investors’ understanding of a company’s climate strategy. The","page_number":571,"box":{"x":116,"y":428,"width":716,"height":12}},{"id":"0807d551-7698-48df-a4b9-c2861dc1466b","block_type":"box","text":"dedicated team generally supports management’s climate strategy proposal if, in the team’s","page_number":571,"box":{"x":116,"y":444,"width":687,"height":12}},{"id":"8a54d739-150c-45f8-ab75-8a3ef5dcc29b","block_type":"box","text":"assessment based on these Guidelines, the strategy is aligned with the low-carbon transition. Similarly,","page_number":571,"box":{"x":116,"y":459,"width":772,"height":12}},{"id":"a10208d8-293f-4d01-bd40-4e7bb2ca2f34","block_type":"box","text":"the dedicated team generally supports management’s proposal on a progress report if the company","page_number":571,"box":{"x":116,"y":475,"width":745,"height":12}},{"id":"769655f8-1165-4f3e-be70-ef8b6437e0b8","block_type":"box","text":"has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":571,"box":{"x":117,"y":490,"width":770,"height":12}},{"id":"aa9d0a4f-9ed1-4c04-85bd-9494d3ee2a02","block_type":"box","text":"transition plan and targets.","page_number":571,"box":{"x":116,"y":506,"width":203,"height":12}},{"id":"ef6be02e-37d8-4bfe-a464-04b3006fc57f","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":571,"box":{"x":117,"y":537,"width":551,"height":12}},{"id":"296b6249-c529-4876-997f-6957806ea3b9","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder","page_number":571,"box":{"x":117,"y":568,"width":717,"height":12}},{"id":"2e4b96e1-751a-4bf5-8a1a-1dffefdcc912","block_type":"box","text":"meeting, as long as certain requirements are met. Shareholder proposals span a wide range of topics","page_number":571,"box":{"x":117,"y":583,"width":758,"height":12}},{"id":"8f6cf238-dc24-42d6-ac53-f1b98bb72e75","block_type":"box","text":"and have varying degrees of relevance for companies across sectors, locations, and business models.","page_number":571,"box":{"x":116,"y":599,"width":766,"height":12}},{"id":"40efc67c-ac71-4dc1-b85f-1dbcb7198b54","block_type":"box","text":"Each shareholder proposal is evaluated on a case-by-case basis, focusing on its merit while","page_number":571,"box":{"x":117,"y":630,"width":687,"height":12}},{"id":"b220e9ed-b0fe-4950-b744-93e44b6e02f7","block_type":"box","text":"considering the company’s individual circumstances. When the dedicated team votes in support of a","page_number":571,"box":{"x":116,"y":645,"width":748,"height":12}},{"id":"b6e74807-b8d6-4d2e-80e0-64bbacde1187","block_type":"box","text":"proposal, it is not necessarily endorsing every element of the proposal or the reasoning, objectives, or","page_number":571,"box":{"x":117,"y":661,"width":755,"height":12}},{"id":"ad171922-5b04-4fd4-9eec-8a3830f763f7","block_type":"box","text":"supporting statement of the proponent.","page_number":571,"box":{"x":116,"y":676,"width":287,"height":12}},{"id":"48c2dd46-5796-493d-8c41-3e452a070fa0","block_type":"box","text":"In addition to financial materiality, the Guidelines consider the proposal’s relevance to the company’s","page_number":571,"box":{"x":117,"y":707,"width":746,"height":12}},{"id":"c4949a2d-9892-41ba-9dcc-c59d08579b2d","block_type":"box","text":"low-carbon transition strategy and targets. The dedicated team assesses the implications for, and the","page_number":571,"box":{"x":117,"y":723,"width":751,"height":12}},{"id":"f8b3dc19-b0aa-408b-a081-9ad31c34681f","block_type":"box","text":"23","page_number":571,"box":{"x":143,"y":815,"width":9,"height":5}},{"id":"684f7209-f4f7-44df-b96c-1a35d4d6aa76","block_type":"box","text":"Board report votes are generally advisory and relate to reports issued by the board of directors that may contain","page_number":571,"box":{"x":171,"y":815,"width":661,"height":10}},{"id":"72df760c-ac12-4521-8896-ece4c0a9aa50","block_type":"box","text":"information on a company’s sustainability efforts, operational resilience, or financial condition, among others.","page_number":571,"box":{"x":170,"y":828,"width":643,"height":10}},{"id":"a89cdec5-0ce5-49b5-b777-f3f52e74432d","block_type":"box","text":"24","page_number":571,"box":{"x":143,"y":841,"width":9,"height":5}},{"id":"5aee8480-b42c-4dc0-8659-3fd03420cc5c","block_type":"box","text":"While the dedicated team may escalate voting by not supporting additional management proposals, principally director","page_number":571,"box":{"x":170,"y":841,"width":703,"height":9}},{"id":"5ffb08f2-8070-4c05-b4f9-98b7b32b587d","block_type":"box","text":"elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using the media","page_number":571,"box":{"x":170,"y":854,"width":702,"height":9}},{"id":"f7fc490e-b7d3-4b41-bedc-39d3778fc6d5","block_type":"box","text":"to amplify concerns as appropriate courses of action. The dedicated team will continue to take a constructive, long-term","page_number":571,"box":{"x":170,"y":867,"width":708,"height":9}},{"id":"f4cbaf74-f85f-4a4b-a578-57ff0c9f0bb7","block_type":"box","text":"focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":571,"box":{"x":170,"y":880,"width":530,"height":9}},{"id":"5c963275-d281-4377-bc75-e522dd7f3bb7","block_type":"box","text":"BlackRock Investment Stewardship","page_number":571,"box":{"x":117,"y":909,"width":277,"height":12}},{"id":"04345dbd-bd07-4c00-9f01-50cfa0ed40e6","block_type":"box","text":"Climate and Decarbonization St","page_number":571,"box":{"x":504,"y":909,"width":213,"height":9}},{"id":"76d59f3b-5b4d-4aee-afdf-78e7c96ad951","block_type":"box","text":"ewardship Guidelines |","page_number":571,"box":{"x":717,"y":909,"width":152,"height":12}},{"id":"a97f39c2-6690-4c7e-9864-2c531d5072e1","block_type":"box","text":"9","page_number":571,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"d5b1c1a1-fc37-48f5-a4ca-c1b8b475faa3","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":571,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ad092b21-cd61-4973-878c-0e83f16085c6","block_type":"box","text":"relevance to, the company’s stated low-carbon transition strategy and targets. 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Under these Guidelines, the","page_number":572,"box":{"x":116,"y":402,"width":720,"height":12}},{"id":"45d83e79-ea70-4c0c-9430-5441d27741fb","block_type":"box","text":"dedicated team engages, where appropriate, to enhance its understanding of a company’s approach.","page_number":572,"box":{"x":116,"y":417,"width":757,"height":13}},{"id":"226b09e4-34f0-4e50-b0f8-36a5761dbfb3","block_type":"box","text":"Generally, voting on these matters would be covered by BIS’ Benchmark Policies.","page_number":572,"box":{"x":117,"y":433,"width":612,"height":12}},{"id":"feeb51e9-bc54-4aeb-97ca-09dd2664bb22","block_type":"box","text":"Executive compensation","page_number":572,"box":{"x":116,"y":465,"width":202,"height":12}},{"id":"17923397-8ff1-4367-94a5-b83752f89365","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that","page_number":572,"box":{"x":116,"y":497,"width":681,"height":12}},{"id":"96103625-54fe-45a1-90da-1d5e76468fb1","block_type":"box","text":"incentivizes and rewards executives appropriately. 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Clear disclosure also","page_number":572,"box":{"x":116,"y":559,"width":763,"height":12}},{"id":"dbe45c5b-81de-4f63-beac-410f3c4d338d","block_type":"box","text":"helps investors assess whether pay structures are consistent with long-term climate strategy and risk","page_number":572,"box":{"x":117,"y":574,"width":754,"height":12}},{"id":"e8879794-a12f-4d7f-99da-2172e0b18b30","block_type":"box","text":"management.","page_number":572,"box":{"x":117,"y":590,"width":106,"height":12}},{"id":"1749a38a-ffc4-4579-8c31-481342f6f4dd","block_type":"box","text":"Auditors and audit-related issues","page_number":572,"box":{"x":116,"y":622,"width":271,"height":9}},{"id":"b09e3410-d6c7-4cb8-88f9-dbc9a4ad9367","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the","page_number":572,"box":{"x":117,"y":654,"width":742,"height":11}},{"id":"5fed9960-1933-47ae-9dd9-64207dd203c3","block_type":"box","text":"dedicated team is interested in understanding whether the company considers and, if relevant,","page_number":572,"box":{"x":116,"y":669,"width":700,"height":12}},{"id":"7038a647-1972-49c1-8a66-fab5038b7d8e","block_type":"box","text":"quantifies, and accounts for material climate-related risks in its financial statements, including if the","page_number":572,"box":{"x":116,"y":684,"width":734,"height":13}},{"id":"d1c667e1-e7de-415e-84e8-61a3a3c785e2","block_type":"box","text":"company explains such risks within the context of its audit report. The team notes that assurance of","page_number":572,"box":{"x":116,"y":700,"width":740,"height":12}},{"id":"e8949b14-c06a-4ead-8ab4-f5770221c814","block_type":"box","text":"corporate disclosures related to climate risk and the transition to a low-carbon economy is still nascent.","page_number":572,"box":{"x":116,"y":716,"width":763,"height":12}},{"id":"a20a4101-7cb3-4967-a53e-b0f47ce94121","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":572,"box":{"x":116,"y":747,"width":504,"height":12}},{"id":"5b579fc3-4e5f-46d4-b3c8-832ebcba7cd2","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on","page_number":572,"box":{"x":116,"y":779,"width":747,"height":12}},{"id":"35095f9f-f81e-44e6-a339-cc21991fc991","block_type":"box","text":"climate-related factors under these Guidelines where a transaction may significantly alter a company’s","page_number":572,"box":{"x":116,"y":795,"width":759,"height":12}},{"id":"1adead1b-dbaf-4066-ba20-a4afd839b7d2","block_type":"box","text":"climate strategy or a shareholder activist has proposed governance, strategic or operational changes","page_number":572,"box":{"x":116,"y":810,"width":749,"height":12}},{"id":"7bac51d4-5681-47b7-a7a5-fbc0f25eb096","block_type":"box","text":"that may impact its climate strategy. The dedicated team does not promote changes in corporate","page_number":572,"box":{"x":116,"y":826,"width":723,"height":12}},{"id":"72cd22dd-c4d1-4e86-95a5-1c7a725fb86e","block_type":"box","text":"control or engage in shareholder activism.","page_number":572,"box":{"x":116,"y":841,"width":317,"height":12}},{"id":"d42bc085-368f-43ab-8f03-07bc9cd2fc72","block_type":"box","text":"25","page_number":572,"box":{"x":143,"y":866,"width":9,"height":5}},{"id":"fcfdc844-de03-4f6c-8055-985fb2f2dd3b","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including trade","page_number":572,"box":{"x":170,"y":866,"width":694,"height":10}},{"id":"2416843e-b4a1-44ac-816a-3e865476a846","block_type":"box","text":"association memberships), and corporate political contributions.","page_number":572,"box":{"x":170,"y":879,"width":378,"height":10}},{"id":"e44f4974-b197-4229-aaea-b559ce86ee99","block_type":"box","text":"BlackRock Investment Stewardship","page_number":572,"box":{"x":117,"y":909,"width":277,"height":12}},{"id":"d4e2639a-1716-48a9-b6cd-fffb3d977648","block_type":"box","text":"Climate and Decarbonization St","page_number":572,"box":{"x":496,"y":909,"width":212,"height":9}},{"id":"2f54fcd9-4b40-4ef4-b4ae-30657e07cd11","block_type":"box","text":"ewardship Guidelines |","page_number":572,"box":{"x":709,"y":909,"width":152,"height":12}},{"id":"6271ceee-2b28-4204-952f-664cd44aa811","block_type":"box","text":"10","page_number":572,"box":{"x":867,"y":909,"width":16,"height":9}},{"id":"369c6a9e-d136-417a-89b4-26605935fb69","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":572,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e8537f12-e71a-4c0e-877f-87b25911c3f3","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":573,"box":{"x":117,"y":87,"width":559,"height":12}},{"id":"4e677cac-2be0-4c6f-9c7a-cd7b2729de1f","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other","page_number":573,"box":{"x":117,"y":118,"width":734,"height":12}},{"id":"3ae87410-49f6-45d5-be68-d785c0e0ee5d","block_type":"box","text":"material sustainability-related risks and opportunities that may be relevant to a company’s business","page_number":573,"box":{"x":117,"y":134,"width":741,"height":12}},{"id":"fc16b565-1501-4f6c-b9f4-30f396effe0e","block_type":"box","text":"model and long-term financial performance. These include a company’s impacts or dependencies on","page_number":573,"box":{"x":117,"y":149,"width":752,"height":12}},{"id":"cb9f1436-35bf-4097-bc10-69d56bf9fb7f","block_type":"box","text":"natural capital and key stakeholders.","page_number":573,"box":{"x":117,"y":165,"width":270,"height":12}},{"id":"6d73b80a-82f9-478d-9386-9b31c076b4d0","block_type":"box","text":"26","page_number":573,"box":{"x":389,"y":165,"width":12,"height":6}},{"id":"5695fb00-e543-42a7-ac29-f4e04678f723","block_type":"box","text":"In the context of these Guidelines, the dedicated team may","page_number":573,"box":{"x":401,"y":165,"width":448,"height":12}},{"id":"130b5336-179f-4178-b848-a97dc912e767","block_type":"box","text":"engage companies to better understand how they are managing the impact on people (e.g.,","page_number":573,"box":{"x":116,"y":180,"width":686,"height":12}},{"id":"c25ad204-260c-463a-b2b1-06461bedc1b7","block_type":"box","text":"employees, suppliers, customers and communities) of any strategic or operational changes they are","page_number":573,"box":{"x":116,"y":196,"width":747,"height":12}},{"id":"f7b69807-606e-4b5f-a2c9-2341a2f01aeb","block_type":"box","text":"making in relation to their transition to a low-carbon economy. Similarly, the team may engage","page_number":573,"box":{"x":117,"y":211,"width":702,"height":12}},{"id":"18db0a1f-f6a5-4f58-8859-76a8f08c6c13","block_type":"box","text":"companies that face risks and opportunities related to land use and deforestation, access to fresh","page_number":573,"box":{"x":116,"y":227,"width":729,"height":11}},{"id":"0b279d06-cbdc-4f54-b51a-a3329254603b","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":573,"box":{"x":116,"y":242,"width":722,"height":12}},{"id":"77e2ddeb-b426-4d78-9862-2a843f1b2955","block_type":"box","text":"26","page_number":573,"box":{"x":143,"y":867,"width":9,"height":5}},{"id":"4e3948dd-01d2-4c9d-a719-363f9e9743af","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":573,"box":{"x":171,"y":867,"width":669,"height":9}},{"id":"2a303ecb-22b8-4c48-8743-e0b023cee4c2","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":573,"box":{"x":170,"y":880,"width":387,"height":9}},{"id":"89677fa2-3950-4f5f-8227-459e8a55d8c5","block_type":"box","text":"BlackRock Investment Stewardship","page_number":573,"box":{"x":117,"y":909,"width":277,"height":12}},{"id":"bb1da7d9-5acd-4dde-9c8e-3b8b6ae70742","block_type":"box","text":"Climate and Decarbonization St","page_number":573,"box":{"x":496,"y":909,"width":212,"height":9}},{"id":"88b1aad6-2460-402d-9659-2b9d7721697b","block_type":"box","text":"ewardship Guidelines |","page_number":573,"box":{"x":709,"y":909,"width":152,"height":12}},{"id":"17a21f2c-103e-4d93-8ea9-79d5c9f39fd9","block_type":"box","text":"11","page_number":573,"box":{"x":867,"y":909,"width":14,"height":9}},{"id":"2422a6b2-eef2-49c1-9ec7-d4ea94e054df","block_type":"box","text":"BNM1026U-6033397-19205823","page_number":573,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"85b4e95f-6e4d-4a9a-8c79-69cea084ee01","block_type":"box","text":"Appendix 1","page_number":574,"box":{"x":116,"y":87,"width":95,"height":12}},{"id":"4275fcb7-45cb-47cf-b608-6b6b8937b168","block_type":"box","text":"Terminology","page_number":574,"box":{"x":449,"y":115,"width":106,"height":12}},{"id":"91db2dd1-ca2b-4ed0-a695-2c4b394d7cbd","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":574,"box":{"x":116,"y":142,"width":593,"height":12}},{"id":"e8fe9f51-e3e8-4dc1-8827-66432fd3e606","block_type":"box","text":"Climate risk","page_number":574,"box":{"x":116,"y":169,"width":95,"height":9}},{"id":"3f9be10c-4316-4c20-a43a-7fa0471fc2b6","block_type":"box","text":": Includes physical risk, the increased risk to companies’ assets and activities caused by","page_number":574,"box":{"x":213,"y":169,"width":658,"height":12}},{"id":"b443b162-cb07-4070-8e72-d131e1d7ccf1","block_type":"box","text":"the direct impact of changing weather patterns and natural catastrophes, and transition risk, the impact","page_number":574,"box":{"x":116,"y":183,"width":768,"height":12}},{"id":"117bd4bc-d571-4b68-8c56-33fc09a18882","block_type":"box","text":"of the transition to a low-carbon economy on a company’s long-term profitability.","page_number":574,"box":{"x":116,"y":197,"width":601,"height":12}},{"id":"9f57f8eb-c637-4200-8cbd-29e957bf81ae","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”)","page_number":574,"box":{"x":116,"y":224,"width":492,"height":12}},{"id":"e5680b83-8a0d-4529-a5f7-03e7958e9451","block_type":"box","text":": The global economic shift toward","page_number":574,"box":{"x":610,"y":224,"width":259,"height":12}},{"id":"eba57bc5-afd3-4616-afbe-f807230e90ca","block_type":"box","text":"lower emissions across many sectors and business models. 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